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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