Gold Mining Stocks Dumped over Worries About Their Profitability
The latest casualty of the drop in gold prices is gold-mining stocks. CNBC reports:
As gold prices extended their decline on Monday, investors dumped shares of gold miners on worries over their profitability as the yellow metal trades below the key psychological level of $1,500 an ounce.
Shares of Australian-listed Kingsgate Consolidated, a gold producer and exploration company, and miner Beadell Resources plunged 15 percent, while Newcrest Mining, which operates gold and copper mines, tumbled more than 8 percent.
The drubbing in gold-related stocks was not confined to Australia, with gold producers in China also falling sharply. Shanghai-listed Zhongjin Gold fell 6.5 percent, while Zhaojin Mining tumbled more than 9 percent in Hong Kong.
Barrick Gold Corp. (NYSE: ABX) is down more than 4% in premarket trading to $21.50. Newmont Mining Corp. (NYSE: NEM) is down more than 5% to $34.30. Both will be new 52-week lows if they hold.
Filed under: 24/7 Wall St. Wire, Commodities & Metals Tagged: ABX, NEM