Shares of Newmont Goldcorp (NEM) fell Tuesday after third-quarter earnings for the world's largest goldminer missed analysts' expectations.
Adjusted earnings per share totaled 36 cents in the latest quarter, compared to analysts' forecast of 39 cents, as tallied by Refinitiv.
Earnings adjustments included a gain on the formation of Nevada Gold Mines, transaction costs associated with the Newmont Goldcorp transaction, tax and valuation allowance adjustments, changes in the fair value of investments, and reclamation and remediation charges, Newmont Goldcorp said.
All-in sustaining costs, or total costs related to production, jumped 10% in the third quarter from a year earlier, to $987 per ounce, as the company sought to increase gold reserves.
Nevada Gold Mines is a joint venture between Newmont Goldcorp and Barrick Gold, which officially began July 1. Newmont merged with Goldcorp in April.
While revenue soared 57% to $2.71 billion in the third quarter from a year earlier, analysts anticipated $2.85 billion. Rising gold prices and higher sales volume, including a full quarter from Goldcorp assets, boosted revenue, according to the company.
Net income swung to $2.24 billion, or $2.65, in the latest quarter from a loss of $124 million, or 27 cents, a year ago.
The company forecast that attributable production for all of 2019 will be 6.3 million ounces, down from its prior forecast of 6.5 million ounces.
A blockade at Newmont Goldcorp's Penasquito mine in Mexico dented third-quarter production, the company said last month. The blockade was lifted in October, but operations remain suspended. A March conveyor fire at Musselwhite in Canada also limited output.
"We are cautious on Newmont due to headwinds from asset integration of the underperforming Goldcorp assets, which we believe will outweigh positive news flow from potential synergies," CIBC analysts wrote in a report, according to Bloomberg.
Newmont Goldcorp shares traded at $37.11, down 4.58%.