Newmont Hits 17-Month Low as Production Outlook Underwhelms

(Bloomberg) -- Newmont Corp., one of the world’s largest gold miners, told investors its production of the precious metal next year will be less than Wall Street analysts expected, pushing shares to the lowest level since the middle of the pandemic.

The Denver-based producer said it expects 2022 gold output to be about 6.2 million ounces, below the 6.6 million analysts expected. Chief Executive Officer Tom Palmer said Covid had a “pretty significant impact” on the gold industry this year and will affect Newmont’s production through next year.

“We’ll certainly have an impact through 2022 from Covid,” Palmer said in a call with analysts. In 2023, “you’ll see us start to ramp up.”

Shares of Nemont fell as much as 2.4% Thursday in New York to $52.60, the lowest since June 5, 2020. The stock is down on the year, following the more than 6.5% drop in gold futures that are on pace for the biggest annual loss since 2015. 

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