Thu, Aug. 11, 10:14 AM
- Newmont Mining (NEM +0.1%) CEO Gary Goldberg tells WSJ that the company likely will review its dividend policy at the end of the year, and perhaps double its Q3 payout to $0.05/share if gold prices stay high.
- NEM has cut its net debt over the past three years nearly in half to ~$2.7B, and Goldberg believes the company will reach its internal debt targets two years ahead of schedule, citing better than expected gold prices as the Fed will hold off from tightening monetary policy and other central banks continue to ease.
- Citigroup recently issued a Buy rating on NEM, saying the company has the highest potential among the North American gold producers to return more capital to shareholders via dividends or buybacks.
Tue, Aug. 9, 11:24 AM
- Goldcorp (GG +2%) is initiated with an Overweight rating and $22 price target at Morgan Stanley, which says the underperformance of GG shares relative to gold mining peers has created an entry point for investors.
- The firm believes GG’s production guidance for 2016-18 appears conservative, and that although the company is mining above reserve grade, the issue seems to be overblown; also, GG is less likely to begin work on a large greenfield project or make a big acquisition since it has steady medium term production and a large resource base.
- Stanley says GG offers a better risk-reward outlook than Barrick Gold (ABX +0.2%) or Newmont Mining (NEM +0.5%), which the firm rates at Equal Weight with respective stock price targets of $20 and $41 (I, II).
Wed, Aug. 3, 7:45 AM
- Newmont Mining (NYSE:NEM) is believed to be in a strong position to purchase Barrick Gold's (NYSE:ABX) stake in Australia's Kalgoorlie super pit gold mine, Reuters reports.
- NEM, which has publicly stated its interest in buying the 50% share of the mine it does not already own, has "been there for some 20 years, so they have the history behind them, they know the asset better than anybody," says Haywood Securities analyst Kerry Smith.
- On the other hand, NEM's intimate knowledge of the mine also could be a disadvantage in that it might not be as willing as an outsider to pay up, BMO's Andrew Kaip says.
- Under the joint venture structure, NEM is believed to have a right of first refusal on the asset, according to the report; ABX hopes to fetch as much as $1B in a sale.
Sun, Jul. 31, 4:15 AM
- Barron's interviews Jim Grant, founder of Grant's Interest Rate Observer.
- Grant is bullish on metals, including Barrick Gold (NYSE:ABX), Newmont Mining (NYSE:NEM), Goldcorp (NYSE:GG), New Gold (NYSEMKT:NGD), and Pan American Silver (NASDAQ:PAAS): "Gold stocks have come a long way. But many were priced for bankruptcy, notably Barrick Gold, an encumbered mining company priced at $6 at the bottom, as if its debt would not be paid. Now the stock is $20. I personally own Newmont Mining, Goldcorp, and New Gold.
- "I'm very bullish on the metal, bullish on miners. Bears on credit finally get paid in gold. At the end of the road to confetti, gold will reclaim some position as an active monetary asset, not a crank's asset. It is now a relatively high-yielding asset, yielding, as it does, nothing.
- "We are also bullish on silver. It is the crazy uncle in the attic of monetary assets. It is as volatile as Donald Trump. It has industrial uses as well as monetary ones, which will come to the fore as the gold bull market progresses. In June, we recommended Pan American Silver (PAAS) and long-dated, out-of-the-money call options on the silver exchange-traded fund iShares Silver Trust (NYSEARCA:SLV).
- Grant is bearish on Kraft Heinz (NASDAQ:KHC), Campbell Soup (NYSE:CPB), and United Rentals (NYSE:URI): "One idea that hasn't worked yet is being bearish Big Food. Both are indicative of one form of excess, reaching for yield in equities. Campbell is trading for 23 times trailing net income, and Kraft is 46 times. Both are battling new trends in eating."
- Other ETFs: GLD, IAU, PHYS, SGOL, UGL, DGP, GTU, UGLD, GLL, DZZ, GLDI, OUNZ, DGL, DGZ, DGLD, GYEN, GEUR, UBG, QGLDX
Thu, Jul. 28, 12:59 PM
- Barrick Gold (ABX -1.5%) believes it could fetch as much as $1B for its 50% stake in the Kalgoorlie Super Pit mine in Australia, Bloomberg reports.
- ABX, which announced plans to sell its stake alongside its Q2 earnings, reportedly aims to sell in the next few months, and expects to attract interest from Australian, Chinese and other global miners in addition to Newmont Mining (NEM -0.3%), which has signaled it would be wiling to buy ABX's stake at the right price.
- However, Sibanye Gold (SBGL -2.2%) says it will not make an offer for the assets of ABX's Acacia Mining unit; Reuters reported earlier this week that ABX is weighing a sale of its majority stake in Acacia and has approached several South African miners.
Wed, Jul. 27, 6:38 PM
- Barrick Gold (NYSE:ABX) -0.7% AH after missing Q2 earnings expectations by a penny and saying it will explore selling its 50% stake in western Australia's Kalgoorlie mine to further trim its debt.
- Newmont Mining (NYSE:NEM), ABX's joint venture partner at Kalgoorlie, said last September that it was interested in buying out the rest of the mine.
- ABX says it has reduced its total debt by $968M YTD after cutting $3.1B in 2015, and remains on track to cut debt by at least $2B this year; over the medium term, it aims to reduce total debt to below $5B from $9B currently and lower all-in sustaining costs to below $700/oz. by 2019 after reporting AISC of $782/oz. for Q2, down nearly 13% Y/Y.
- ABX says Q2 gold production fell 7.5% to 1.34M oz. and its average realized gold price rose to $1,259/oz. from $1,190 a year earlier; ABX reaffirms its full-year gold production outlook of 5M-5.5M oz. and lowers its AISC guidance to $750-$790/oz. from $760-$810/oz.
- Q2 copper output rose to 380M-430M lbs. from 370M-410M lbs. with the start of commercial production at its 50%-owned Jabal Sayid mine in Saudi Arabia.
Thu, Jul. 21, 2:30 PM
- Newmont Mining (NEM +2.4%), which posted an impressive Q2 earnings beat yesterday, says it will review its dividend at an October board meeting, an indication that it may boost its payout later this year.
- "It's certainly worth noting that if today's gold price is maintained, our gold price-linked dividend would double in the third quarter," CFO Laurie Brlas said during today's earnings conference call.
- CEO Gary Goldberg said the board will weigh the use of cash for debt reduction, project investment and shareholder returns, but that raising the dividend is preferable to share buybacks.
- Slide show
Wed, Jul. 20, 6:22 PM
- Newmont Mining (NYSE:NEM) +2% AH after easily exceeding analyst expectations for Q2 earnings and revenues, benefiting from higher gold production and lower costs.
- NEM says it produced 1.3M oz. of attributable gold and 38K metric tons of copper during Q2, compared to 1.2M oz. of gold and 42K metric tons of copper in the prior-year quarter.
- All-in sustaining costs for gold improved to $876/oz. in Q2 from $909/oz. in the prior-year quarter, and copper AISC improved to $1.53/lb. vs. $1.61/lb. a year ago.
- NEM issues a new gold production forecast, excluding the Batu Hijau mine in Indonesia, which it is selling: the miner now expects output of 4.7M-5M oz. in 2016, rising to 4.9M-5.4M oz. in 2017 and remain stable at 4.5M-5M oz. through 2020.
- NEM also lowers its AISC guidance to $870-$930/oz. for 2016 from a previous outlook for $880-$940; 2017 guidance remains at $850-$950/oz.
Wed, Jul. 20, 4:21 PM
Wed, Jul. 20, 4:17 PM
Wed, Jul. 20, 3:25 PM
- Stillwater Mining (SWC -0.1%) is well positioned heading into Q2 earnings, FBR Capital says, as conservative expectations could be lifted on continued cost improvements as well as positive progress reports on Blitz and the company's non-operating assets, which often are overlooked; the firm lifts its price target on SWC's Buy-rated shares to $17 from $13.
- FBR expects Newmont Mining (NEM -4.7%) to report an in-line quarter vs. consensus, and raises its price target price to $39 from $31, believing the shares are fairly valued at current levels on expectations of steady gold prices from current levels and the company’s forward outlook.
- The firm foresees a modest Q2 beat for Freeport McMoRan (FCX -1.2%) but is cautious, citing increased concerns about the pace of progress in the negotiations with the Indonesian government; FBR raises its price target to $11 from $9.
- Teck Resources (TCK -1.4%) has pulled back from its recent strong stock performance, and FBR thinks the company needs to post strong results to regain its momentum.
- The firm rates NEM, FCX and TCK at Market Perform.
Tue, Jul. 19, 5:35 PM
Tue, Jul. 19, 3:47 PM
- Newmont Mining (NEM -0.5%) is the only gold miner worthy of a Buy rating, according to Deutsche Bank analysts Jorge Beristain and Chris Terry, citing balance sheet flexibility, production growth and attractive valuation.
- In its Q2 earnings preview for the sector, the firm forecasts aggregate EBITDA among major precious metals miners to remain largely flat Q/Q at ~$2.5B as higher gold and silver prices were offset by ~3% lower production, particularly for Goldcorp (GG -1.8%).
- Beristain and Terry suggest avoiding GG, Franco-Nevada (FNV -0.3%) and Coeur Mining (CDE -2.8%), relative to the sector, but note that valuations generally are rising.
Fri, Jul. 8, 5:18 PM
- Barrick Gold (NYSE:ABX) President Kelvin Dushnisky says the company could be debt free within a decade, shedding all of its $9B debt present at the end of Q1, if the gold price cooperates.
- ABX has set a target of paying down $2B in debt this year after exceeding its $3B debt reduction goal last year, and Dushnisky notes that the miner already achieved 40% of that goal by the end of the Q1.
- Part of the debt strategy will involve divesting ABX’s non-core assets, including its 50% stake in its Zaldivar copper mine in Chile, its Lumwana copper mine in Zambia, and its 64% interest in Acacia Mining, at the right time, Dushnisky says.
- The CEO also says it could at some point sell its stake in the Australian Kalgoorlie Super Pit joint venture it has with Newmont Mining (NYSE:NEM), whose CEO this week said is still interested in acquiring ABX’s stake, though Dushinski says the two sides remain apart on valuation.
Wed, Jul. 6, 6:25 PM
- The view on steel stocks has become “less negative” as metals and mining commodity prices rallied ~13% in Q2, Deutsche Bank's Amy Tan says, while still preferring companies with gold exposure.
- China's stimulus created a financing window in April, effectively allowing most North American M&M companies to either re-capitalize strained balance sheets or extend near-term debt maturities into future periods, according to Tan.
- Citing the improved steel price outlook and balance sheet refinancing, the firm upgraded U.S. Steel (NYSE:X) to Hold from Buy with a $15 price target, raised from $8, and Nucor (NYSE:NUE) to Buy from Hold with a $60 target, up from $52; highly leveraged AK Steel (NYSE:AKS) remains rated Sell.
- Tan also upgraded Kinross Gold (NYSE:KGC) to Hold from Sell on valuation, and raised the stock price target for Buy-rated Newmont Mining (NYSE:NEM) to $44 from $38.
Thu, Jun. 30, 7:55 AM
- Newmont Mining (NYSE:NEM) agrees to sell its stake in the Batu Hijau copper and gold mine in Indonesia for $1.3B.
- NEM is selling its 48.5% economic interest in PT Newmont Nusa Tenggara, the operator of the open pit mine, to PT Amman Mineral Internasional for $920M in cash and $403M in contingent payments tied to metal price upside and development of the Elang copper reserve in Indonesia.
- NEM says the sale is aligned with its priorities of lowering debt and funding its highest margin projects.
- NEM +1% premarket.
Newmont Mining Corp. is a gold producer, which is engaged in the acquisition, exploration and production of gold and copper properties in U.S., Australia, Peru, Indonesia, Ghana, Canada, New Zealand and Mexico. The company's operating segments include North America, South America, Asia Pacific... More
Sector: Basic Materials
Country: United States