Commodities & Metals
Gold Mining Stocks Dumped Over Worries About Their Profitability
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The latest casualty of the drop in gold prices is gold-mining stocks. CNBC reports:
Source: Thinkstock
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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