Newmont, the Denver-based gold miner, has reported a decline in third-quarter earnings, primarily due to lower gold production. This update comes ahead of the company's planned acquisition, which is set to close in November.

Financial Performance

Earnings for the quarter ending in September dropped to $158 million, or 20 cents a share. This is down from $213 million, or 27 cents a share, compared to the same period last year. Adjusted earnings, after removing certain one-off items, were reported at 36 cents a share. This fell slightly short of Wall Street's average estimate of 40 cents a share.

Sales Performance

Third-quarter sales also experienced a decline of 5.4%, totaling $2.49 billion. This figure fell below the average Wall Street target of $2.83 billion.

Acquisition Update

In May, Newmont announced its agreement to acquire Australian rival Newcrest Mining for approximately $17.5 billion. This deal represents the largest ever merger between gold miners. The company remains on track to close the acquisition on November 6.

Gold Prices and Production

Newmont's average realized price per ounce of gold during the third quarter was $1,920. This was based on a gold production of 1.29 million ounces. In comparison, last year's average price was $1,691 per ounce, with a production of 1.49 million ounces.

Production Projection and Costs

Newmont has adjusted its production projection for existing mines to 5.3 million ounces. Several factors contributed to this reduction, including a strike at the Mexican Peñasquito property, lower production from Nevada Gold Mines and Pueblo Viejo joint ventures, and machinery issues at the Ahafo mine in Ghana.

Looking ahead to 2023, Newmont anticipates a gold cost applicable to sales price of $1,000 per ounce, with an average all-in sustaining costs price of $1,400 per ounce.

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