Newcrest Mining Limited shares tumble lower

Unfortunately for its shareholders the Newcrest Mining Limited (ASX: NCM) share price had a bit of an off day on Tuesday.

The shares of Australia’s largest gold miner finished the day almost 2% lower at $22.59.

What happened?

Despite the release of a strong second-quarter production report this morning, Newcrest’s shares were caught up in a gold miner sell-off following another drop in the gold price.

The shares of Northern Star Resources Ltd (ASX: NST) and Perseus Mining Limited (ASX: PRU) also dropped lower.

This led to the S&P/ASX All Ords Gold (Index: ^AXGD) (ASX: XGD) falling 1.5%.

What were the highlights from the quarter?

During the quarter Newcrest produced 613koz of gold, up 17.2% from the prior quarter.

Another highlight was its reduction in group all in sustaining costs (AISC). Newcrest reported an AISC of US$829 per ounce, down US$$69 on the prior quarter. A key driver of this was the record low AISC of US$129 per ounce achieved at its Cadia operation.

This ultimately led to the company’s AISC margin increasing 13.1% to US$459 per ounce for the quarter.

Despite today’s decline the Newcrest Mining share price is up around 13% during the last six months.

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Motley Fool contributor Motley Fool Staff has no position in any stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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