Denver-based gold mining giant Newmont Mining (NEM) ended the week down 15.9%, even as gold futures (GCZ24) soared to new highs. While mining stocks often move in tandem with commodity prices, traders punished the S&P 500 Index ($SPX) component after its Q3 earnings fell short of estimates.
Despite a substantial increase in revenue and net income compared to the previous year, the company faced higher costs, particularly in labor, which impacted its profit margins. The market reacted negatively to the earnings miss, causing NEM shares to collapse by 14.7% on Thursday, with continued losses into Friday’s session - even as gold prices rose to new records to wrap up the week.
