Newcrest (ASX:NCM) share price down over 10% in a month, here's why?

Be the First to Comment Read

Newcrest (ASX:NCM) share price down over 10% in a month, here's why?

More on:
Newcrest Mining Limited (ASX:NCM) shares
Image source: © Timonschneider | Megapixl.com

Highlights

  • The drop in gold prices may have impacted the market mood and sparked a sell-off in Newcrest shares.
  • Panic is also sparked by macroenvironmental variables such as China's COVID-19 problem, Russia's war in Ukraine, inflationary trends, and interest rate hikes.
  • Furthermore, gold's price has been steadily declining over the last 30 days, currently trading at US$1,822.65 per ounce.

Shares of Newcrest Mining Limited (ASX:NCM) were trading in the green today, up 0.65% at AU$24.94 each at 11.15 AM AEST today (17 May 2022).

This is in line with S&P/ASX All Ordinaries Gold Index, which was 0.64% up at 6,161.50 points at the same time.

Although there is no price-sensitive information provided by the company today, the most likely cause of the price movement is the S&P/ASX All Ordinaries Gold Index.

However, Newcrest shares have been down around 12% in the last month.

Why did Newcrest shares report negative growth last month?

Six of 11 sectors were trading higher on Tuesday (17 May 2022), while the Materials Index, up 0.99%, was one of the best performing sectors. The five industries which fell in the red territory included IT, healthcare, A-REIT, Industrials and Telecom sector.

On the other side, the drop in gold prices may have impacted the market mood and sparked a sell-off in Newcrest shares in the recent past.

Panic is also sparked by macroenvironmental variables such as China's COVID-19 problem, Russia's war in Ukraine, inflationary trends, and interest rate hikes.

Furthermore, gold's price has been steadily declining over the last 30 days, currently trading at US$1,822.65 per ounce. Over the time period mentioned, this is a 10% decrease.

On 18 April 2022, the precious metal came close to breaking through the psychological US$2,000 barrier before falling short.

Newcrest's earnings are anticipated to be impacted by the reduction in gold prices.

Also Read: Newcrest Mining (ASX:NCM) flouts falling gold, begins the week higher

Source: © Vladgalenko | Megapixl.com

A look at Newcrest quarterly report

On 28 April 2022, Newcrest shared its quarterly report for the three months ended 31 March 2022. The company reported a 10% increase in gold production during that time. Higher mill throughput at Cadia, the addition of production from Brucejack following the Pretium deal, and greater gold head grade and recovery at Lihir contributed to the increase in gold production.

The company plans to expand production in the June 2022 quarter. Newcrest Mining Limited is Australia's largest gold miner, with a market capitalisation of AU$22.13 billion.

About Newcrest Mining

Newcrest Mining is an ASX-listed business that specialises in gold and gold/copper concentrate exploration, development, mine operations, and sales. The company has a pipeline of brownfield and greenfield exploration projects. Cadia, Telfer, Lihir, Havieron, Red Chris, and Wafi-Golpu are among its properties.

Newcrest finalised its acquisition of Pretium Resources Inc (Pretium) on 9 March 2022. Pretium owns the Brucejack mine, which is located in the Golden Triangle region of British Columbia, Canada. Brucejack, one of the world's highest-grade gold mines, began commercial production in July 2017.

Also read: NCM, QBE, SHL, REA: Look at the performance of these ASX stocks

Disclaimer

Speak your Mind

Featured Articles

Ad
kalkine logo

GET A FREE STOCK REPORT

Top Penny Picks under 20 Cents to Fit Your Pocket! Get Exclusive Report on Penny Stocks For FREE Now.

We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK