Gold Mining Stocks Dumped over Worries About Their Profitability

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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
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Markets

S&P 500 2,386.06 -2.71 -0.11%
DJIA 20,954.60 -26.73 -0.13%
NASDAQ 6,049.53 0.60 0.01%
DAX 12,444.07 0.28 0.00%
NIKKEI 225 19,196.74 -55.13 -0.29%
HANG SENG 24,615.13 -83.35 -0.34%
USD (per EUR) 1.09 0.00 0.27%
USD (per CHF) 0.99 0.00 0.06%
JPY (per USD) 111.53 0.30 0.27%
GBP (per USD) 1.29 0.00 0.30%

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