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A little more than six months after buying Goldcorp Inc., Newmont Goldcorp Corp. is struggling to make the acquisition work.
On Tuesday, Denver-based Newmont missed analysts’ estimates for the third quarter and cut its production forecast for the year, as the world’s biggest gold company contends with operational problems at mines formerly owned by Vancouver-based Goldcorp.
During the quarter ended Sept. 30, Newmont dealt with the aftermath of a serious fire at its Musselwhite mine in Northern Ontario, and a blockade at its Penasquito mine in Mexico. Grades at Éléonore, a mine in Quebec, also disappointed in the quarter.
Goldcorp’s Penasquito gold-silver mine has been the site of multiple blockades this year. Most recently, trucking contractors blocked the site from mid-September to late October after a dispute with the company. The action during the third quarter led to a production shortfall at the mine of 11,000 ounces of gold and 1.7 million ounces of silver.
Newmont reported adjusted share earnings of 36 US cents for the third quarter, 3 US cents lower than analysts expected. Cash flow per share was US$1.03 compared with US$1.19 that analysts expected. The miner also cut its production forecast for the year to 6.3 million ounces of gold versus 6.5 million ounces previously.
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