Gold Mining Stocks Dumped over Worries About Their Profitability

old mining hardhat with head lightThe 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
Read Full Story

Markets

DJIA 25,339.99 287.16 1.15%
NASDAQ 7,496.89 167.83 2.29%
NIKKEI 225 22,271.30 -423.36 -1.87%
HANG SENG 25,487.29 -314.20 -1.22%
DAX 11,523.81 0.00 0.00%
USD (per EUR) 1.16 0.00 0.20%
USD (per CHF) 0.99 0.00 -0.08%
JPY (per USD) 111.70 -0.49 -0.44%
GBP (per USD) 1.31 0.00 0.13%