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Gold and Newmont lower

A softer gold price is perhaps to blame for Newmont Mining’s (US:NEM) lower close despite its lofty production plans which could see it take the title from Barrick Gold Corp (CN:ABX) as the world’s biggest gold producer next year.
Gold and Newmont lower Gold and Newmont lower Gold and Newmont lower Gold and Newmont lower Gold and Newmont lower

Newmont looks set to gain Barrick’s title of biggest gold producer

Staff reporter

Newmont yesterday announced an improved 2018 production outlook of 4.9-5.4 million ounces of gold, compared with its previous guidance of 4.7-5.2Moz.

Barrick meanwhile recently reduced its 2017 guidance to 5.3-5.5Moz from an earlier 5.6-5.9Moz and had put its 2018 guidance at 4.8-5.3Moz back in February, prior to selling its 50% stake in the Veladero gold mine in Argentina which had been one of its core operations.

Shares in Newmont, which is also targeting a 50% dividend increase, closed about 1% lower in New York and Barrick eased a similar amount in Toronto.

Spot gold was lower than yesterday, falling below US$1,260 an ounce on the spot market earlier as the US dollar remained steady.

However Australian gold bugs were undaunted, sending miner St Barbara (AU:SBM) up more than 3% as it invested A$5 million (US$3.8 million) in junior gold explorer Catalyst Metals (AU:CYL).