Newmont Mining Corporation (Holding Company)NYSE
Mon, Oct. 17, 3:43 PM
- Newmont Mining (NEM +2.5%) is upgraded to Overweight from Equal Weight at Barclays, despite fears of a Fed rate hike that have driven gold prices lower.
- The firm says it remains comfortable with its forecast for $1,350/oz. gold over 2017 as investors move past their immediate focus on the U.S. election and the next Fed move to consider what it sees as a continued high-risk, low growth global economy.
- Barclays thus believes NEM shares look increasingly attractive ahead of potentially favorable company-specific events; over the next several months, it looks for NEM to complete the sale of Batu Hijau, recalibrate and increase its dividend payout, and affirm development of its promising expansions in Ghana.
- The firm also likes OceanaGold (OTCPK:OCANF +2.4%), which has been hit by political risks in the Philippines, and thinks the miner will reaffirm its operations in the country and begin the ramp up of its key Haile project, its first in the U.S.
Fri, Oct. 14, 2:15 PM
- Newmont Mining (NEM -1%) CEO Gary Goldberg, who has been saying for more than a year that he would consider buying Barrick Gold’s (ABX -1.3%) half of their jointly owned Kalgoorlie Super Pit mine in Australia at the right price, says the companies are aligned on the resource value but not on the future value of the mine.
- Goldberg tells Bloomberg that the companies are "not misaligned" on the value of the resource in the ground, "but people have different assumptions on exchange rates, and gold price, those sorts of things.”
- NEM’s agreement to operate Kalgoorlie expires in 2020, and Goldberg says the company has cut costs by 30% and raised production 20% Y/Y since taking over the mine’s operation in May 2015.
- The miners have declined to say how much they think their stakes are worth; analyst valuations have ranged from $400M to ~$1.5B.
Fri, Oct. 7, 9:37 PM
- Barrick Gold’s (NYSE:ABX) 50% stake in the Kalgoorlie super pit gold mine has attracted interest from Kinross Gold (NYSE:KGC) and Zijin Mining (OTCPK:ZIJMF) in a sale that could fetch as much as $1B, Bloomberg reports.
- Australia's Newcrest Mining (OTCPK:NCMGF), Northern Star Resources (OTCPK:NESRF) and Evolution Mining (OTCPK:CAHPF), as well as some Chinese companies, also are considering bids, due by the end of October, according to the report.
- ABX is said to be considering ways to structure the sale, including the possibility of selling shares in the holding company that owns the mine, which would not include a right of first offer for Kalgoorlie operator and joint venture partner Newmont Mining (NYSE:NEM) and thus would allow other buyers to potentially acquire the stake.
- NEM has expressed interest in the 50% of the mine it does not already own ever since ABX announced plans to sell its stake in July.
Tue, Oct. 4, 2:20 PM
- Precious metals miners are slammed as gold prices dip well below $1,300/oz. to settle at $1,269.70, its lowest since the U.K.'s Brexit vote in June, as upbeat U.S. manufacturing data yesterday has stoked expectations of higher interest rates.
- Gold is “falling off the cliff,” says Naeem Aslam, chief market analyst at ThinkMarkets. “Traders are buying the equity market with both hands, especially over in the U.K.” as the British pound declines.
- Among precious metals miners today: ABX -9.2%, KGC -10.4%, GG -7.8%, NEM -8.7%, EGO -7.4%, RGLD -7.8%, AEM -8.9%, NG -9.7%, SLW -9.1%, FNV -5.6%, IAG -11.2%, GOLD -8.1%, AU -9.3%, GFI -6.4%, SBGL -8.1%, HMY -9.9%, AUY -11.6%, BTG -9.3%, NGD -6.6%.
- ETFs: GDX, NUGT, GDXJ, GGN, DUST, SIL, JNUG, GLDX, JDST, SGDM, ASA, SLVP, SILJ, RING, PSAU, SGDJ, TGLDX, GDJJ, GDXX, GDXS
Tue, Oct. 4, 12:48 PM
- Newmont Mining (NEM -7.2%) says it has completed construction of the Merian gold mine in Suriname on time and more than $150M, or nearly 20%, below its initial development capital budget.
- NEM declared commercial production on Oct. 1, having achieved sustained average mill throughput of 80% and gold recovery of more than 90% over the past 30 days.
- NEM says Merian contains gold reserves of 5.1M oz. and expects annual gold production to average 400K-500K oz. at all-in sustaining costs among the lowest in its portfolio, averaging $650-$750/oz. in the first five years.
- NEM shares are sharply lower along with other gold stocks as bullion slides to below $1,300/oz., its lowest level in three months.
Mon, Oct. 3, 12:34 PM
- Freeport McMoRan (FCX -0.5%), Barrick Gold (ABX -2.5%) and Pan American Silver (PAAS -0.5%) are upgraded to Buy from Hold at Deutsche Bank, which notes the 12% Q3 rally in commodity prices have enabled the sector to improve their balance sheets via stock issuance, debt refinancing and asset disposals.
- The firm is neutral overall in the metals group, as it continues to believe that material supply cuts still are needed in most commodities and thus does not anticipate prices continuing their upward trend.
- Deutsche Bank says its top picks are ABX and Newmont Mining (NEM -3%) in precious metals, Steel Dynamics (STLD -2.4%) in steel, and Alcoa (AA -1.1%) and Kaiser Aluminum (KALU -1.8%) in aluminum; it upgrades AK Steel (AKS -0.7%), Coeur Mining (CDE -0.8%), Teck Resources (TCK -1.5%) and Goldcorp (GG -4.2%) to Hold from Sell.
Wed, Sep. 21, 5:55 PM
- Newmont Mining (NYSE:NEM) was today's best-performing stock in the S&P 500 and precious metals miners gained across the board, enjoying a big boost from the Fed’s decision to keep interest rates unchanged.
- NEM even outperformed the VanEck Vectors Gold Miners ETF (NYSEARCA:GDX) - +7.5% vs. +7% - and Credit Suisse analysts say business in looking up for the miner, as NEM continues to meet or beat cost and production targets, as well as strengthen its portfolio.
- The firm adds that NEM believes shareholders appreciate its predictability, discipline and defining growth based on free cash flow rather than production.
- Also today: ABX +8.6%, GG +7%, AEM +7.1%, EGO +5.7%, KGC +7.6%, SLW +7.8%, FNV +4.8%, RGLD +9.6%, IAG +7.9%, GOLD +4.7%, AU +10.4%, GFI +9%, SBGL +9.5%, HMY +11.8%, AUY +7.6%, BTG +6.3%, NG +8.1%.
- ETFs: GDX, NUGT, GGN, DUST, SIL, GLDX, SGDM, ASA, SLVP, RING, PSAU, TGLDX, GDXX, GDXS
Tue, Sep. 20, 9:53 AM
- Newmont Mining's (NEM +0.1%) sale of its stake in the Batu Hijau mine in Indonesia may not close until Q4 amid a complex approval process, CEO Gary Goldberg says.
- The possible delay comes after some analysts raised concerns after the June deal announcement that closing conditions, including requirements for a valid export license for the mine, posed risks for the deal's completion.
- Goldberg says the buyer, Amman Mineral Internasional, remains motivated to purchase the asset, the Indonesian government is supportive and NEM has worked through terms of the transition with its employees at the mine.
- The CEO also says NEM still hopes to acquire the 50% of Barrick Gold's (ABX -0.1%) Kalgoorlie gold mine in Australia that it did not already own.
Thu, Sep. 1, 3:44 PM
- The previously hot gold miners had a tough time of it in August, even slipping into bear market territory yesterday. But the names are hot again to start off September, with the GDX higher by 3.5% today. Gold is up 0.4% to $1,317 per ounce.
- S&P, meanwhile, is mulling the possibility of dividend hikes, noting shareholder pressure is likely to lead to higher payouts or share buybacks should gold prices remain near or above current levels. Newmont Mining (NEM +2.6%) has promised to revisit its capital return strategy, Gold Fields (GFI +5.3%) significantly hiked its interim dividend, and AngloGold Ashanti (AU +2.3%) is considering resuming dividends in 2017 after a three-year holiday.
- ETFs: GDX, NUGT, GDXJ, GGN, DUST, JNUG, GLDX, JDST, SGDM, ASA, RING, PSAU, SGDJ, TGLDX, GDXX, GDJJ, GDXS, GDJS
Sat, Aug. 27, 9:17 AM
- It's been a good year for gold and the companies that mine it, but Goldcorp's (NYSE:GG) 38% gain is badly lagging a near-doubling in the GDX, and even stronger advances for other sizable producers like Newmont Mining (NYSE:NEM) and Barrick Gold (NYSE:ABX).
- Overpromising and underdelivering has been an issue, and investors right now are paying just 7.2x next year's forecast cash flows vs. the peer average of 9.8x. But new CEO David Garofalo (he's been on board for six months) has already made significant operational changes, and hopes to deliver $2B in NAV accretion over the next two years. Cost cuts could add $0.20 to EPS, says JPMorgan's bullish John Bridges.
- "There’s a value gap that should narrow without needing the gold price to take it there,” says Tocqueville Asset Management's Ryan McIntyre, who thinks there's 40% upside in Goldcorp at current levels for the metal.
- Source: Robin Goldwyn Blumenthal in Barron's
Wed, Aug. 24, 2:30 PM
- Shares of gold miners are sharply lower as gold futures fall 1.2% to settle at a one-month low $1,329.70/oz., closing below its 50-day moving average for the first time since June 7.
- The top gold miners ETF (GDX -6.3%) trades well below its 50-day moving average of $29.09 and is on pace for its first four-day losing streak since early November.
- Investors are dialing down bullish bets on gold ahead of Friday's scheduled remarks from Janet Yellen, says Peter Hug, global trading director at Kitco Metals.
- Among top mining stocks: ABX -8.4%, NEM -6.7%, GG -8.7%, KGC -9%, AEM -6.3%, SLW -7.3%, RGLD -7.3%, EGO -7.2%, GFI -5.1%, AUY -8.8%, GOLD -5%, HMY -5.7%, SBGL -4.9%, IAG -8.7%, BTG -6.9%, NG -7.3%, FNV -6%.
- ETFs: GDX, NUGT, GGN, DUST, SIL, GLDX, UGL, DGP, UGLD, GLL, DZZ, SGDM, ASA, SLVP, DGL, RING, DGZ, DGLD, PSAU, TGLDX, UBG, GDXX, GDXS
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.