Newmont Corp on Monday raised its annual cost forecast and warned that inflationary pressures would persist into 2023 after its second-quarter profit missed Street estimates, sending the world’s biggest gold miner’s shares down 12 percent.
Higher operating costs related to labor, energy, and supplies have forced the miner to hike its annual forecast for all-in sustaining costs (AISC), an industry metric that reflects total expenses, to $1,150 per ounce from $1,050 per ounce earlier.
In comparison, the cost in the second quarter ended June 30 rose nearly 16 percent to $1,199 per ounce of gold.
The miner sees about a 20 percent to 30 percent spike in prices for raw materials such as cyanide and explosives, used in mining operations, in the second half of the year and a tight labor market to persist into 2023….