Gold Mining Stocks Dumped Over Worries About Their Profitability

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By Douglas A. McIntyre Updated Published
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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.

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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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