Today, 11:39 AM
- Newmont Mining (NEM -2.5%) is downgraded to Neutral from Buy with a $20 price target, cut from $23, at Citigroup, as the firm reduces its 2016 forecast for gold (-10%) and copper (-12%) prices.
- Citi lowers its NEM EPS estimates to reflect its reduced price forecasts, to $1.06 from $1.19 for 2015, to $0.15 from $0.66 for 2016, and to $0.27 from $1.01 for 2017.
- Despite a $1,000/oz. gold price forecast for 2016, the firm believes NEM will still be able to generate free cash flow of $257M, with higher forecast gold prices driving further improvements in 2017 forward.
Wed, Oct. 28, 5:41 PM
- Newmont Mining (NYSE:NEM) +2.4% AH after Q3 earnings and revenues beat analyst estimates, as higher production and lower costs helped offset a drop in gold prices.
- NEM says the average realized gold price fell to $1,104/oz. in Q3 from $1,270/oz. in the year-ago quarter, while copper averaged $1.95/lb. from $2.71 a year earlier; Q3 gold production gained 16% Y/Y to 1.34M oz., while copper production totaled 48K metric tons, up from 13K metric tons a year earlier.
- NEM’s Q3 all-in sustaining cost was $835/oz. of gold, better than the $995/oz. in the year-ago period, and it forecasts AISC of $880-$940 for the full year as well as capital spending of $1.42B-$1.63B.
- NEM says it remains on track to meet its full-year production outlook for gold at 4.55M-4.94M oz. and for copper at 130K-160K tons.
- Also, NEM announces plans to expand its Tanami operations in Australia by building a second decline at the mine and expanding plant capacity, which is expected to raise gold production by 80K oz. and cut Tanami's costs by 5%-10% in the first five years of production.
Wed, Oct. 28, 5:11 PM
Wed, Oct. 14, 2:26 PM
- Gold settles at three-and-a-half month highs, rallying $14.50 (+1.2%) to $1180/oz., as soft U.S. economic data and concerns over deflationary pressures in China add to expectations the Fed will delay any interest rate increases.
- Gold is gaining more ground in electronic trading after the Fed Beige Book release.
- The yellow metal's eighth gain in nine sessions has sent the SPDR Gold Trust ETF (GLD +1.5%) past its 200-day moving average, and gold miners have ripped higher, as evidenced by this month's 18% gain in the Market Vectors Gold Miners ETF (GDX +5.6%).
- Top mining stocks including Barrick Gold (ABX +7.9%), Goldcorp (GG +8.5%), Kinross Gold (KGC +8.3%), Gold Fields (GFI +5.4%), Newmont Mining (NEM +5.4%), Agnico Eagle Mines (AEM +5.7%), Silver Wheaton (SLW +6.8%), Yamana Gold (AUY +6.7%), Franco Nevada (FNV +5%), Randgold (GOLD +4.8%) and AngloGold (AU +5.6%) are all sharply higher.
- Other ETFs: NUGT, AGQ, GGN, DUST, SIL, USLV, ZSL, UGL, GLDX, DGP, GLL, UGLD, DZZ, SLVO, GLDI, SGDM, DSLV, ASA, SLVP, DGL, DBS, DGZ, RING, DGLD, PSAU, USV, TGLDX, GEUR, UBG, GYEN
Wed, Sep. 16, 3:45 PM
- Newmont Mining's (NEM +5.8%) stock price target is lowered to $22 from $24 by RBC analysts on the back of downward revisions to base metal price assumptions, including a ~15% reduction to the firm's 2015-19 average copper price assumptions.
- NEM has significant leverage to copper prices through its Batu Hijau, Boddington and Phoenix mines, prompting the firm to reduce its EPS and cash flow/share estimates.
- But for today at least, shares of gold miners are surging, following gold prices higher as optimism grows that the Fed will not raise rates tomorrow: ABX +7%, KGC +9.2%, GG +5.3%, AEM +6.9%, GFI +3%, SBGL +2.4%, FNV +4.7%, NGD +7.1%, AUY +9.1%, IAG +7.6%, BTG +4.1%, EGO +9.7%, SLW +7.1%.
Thu, Aug. 20, 2:29 PM
- Alongside interest rate sensitive names, the gold miners are well-bid as the major averages tumble.
- The yellow metal itself is higher by 2.15% to $1,152 per ounce.
- Gold Fields (GFI +15.1%), AngloGold Ashanti (AU +11.2%), Sibanye Gold (SBGL +11.3%), Alamos Gold (AGI +9.7%), IAMGOLD (IAG +6.1%), Randgold (GOLD +5.6%), Barrick (ABX +4.9%), Newmont (NEM +3.7%), Kincross (KGC +2.6%), Goldcorp (GG +3.2%).
Wed, Aug. 12, 3:46 PM
- China's moves to devalue the yuan and the potential for further devaluation have favorably shifted the risk/reward for stocks of precious metal miners, Deutsche Bank says as it upgrades Newmont Mining (NEM +6.1%) and Barrick Gold (ABX +5.2%) to Buy from Hold, citing improving balance sheets and share pullbacks the firm views as overdone compared to the move in gold prices.
- The firm notes 82% of ABX's and NEM's estimated 2016 revenues come from gold; Kinross Gold (KGC +2.8%) and Goldcorp (GG +4.9%) derive a respective 97% and 73% of their expected 2016 revenues from gold.
- Among silver miners, Deutsche Bank upgrades Pan American Silver (PAAS +6.1%) and Hecla Mining (HL +7.6%) to Buy from Hold, citing their cost exposures outside the U.S. and their respective 26% and 38% gold exposure.
Wed, Aug. 12, 11:29 AM
- China’s currency devaluation is welcome news for gold stocks such as Newmont Mining (NEM +5.2%), Agnico Eagle Mines (AEM +8.1%), Coeur Mining (CDE +13.9%) and Gold Resource (GORO +2.5%), Sterne Agee CRT analysts say.
- China's move should help gold and silver prices through risk-off investor diversification and heightened investment attention, especially from Chinese investors looking to protect purchasing power, and fragile global economic growth prospects highlighted by China’s struggles could delay any meaningful U.S. rate increases, the firm says.
- With investor sentiment still skeptical, the supportive macro news flow could provide fuel for a rally in gold mining equities, the firm says, preferring Buy-rated NEM, AEM, CDE and GORO; Barrick Gold (ABX +3.9%) is rated Neutral.
Mon, Jul. 20, 10:39 AM
- Several gold miner stocks strike new 52-week lows in early trading, as gold prices plunge below $1,100/oz. overnight and adding pressure to a sector that already faces razor-thin margins.
- Investors have turned sharply negative on gold as the U.S. dollar rises ahead of a likely rise in interest rates, and a report out of China shows lower than expected holdings of the metal.
- While most senior gold miners can generate decent margins at $1,100 gold, many small and mid-tier producers are underwater at the price, and some of the seniors are struggling with heavy debt.
- Hitting new 52-week lows today: ABX -9.3%, GG -7.7%, GFI -10.7%, KGC -9.4%, AGI -6.6%, AU -9.7%, SBGL -7.8%, BTG -9.3%, EGO -2.9%, NGD -8%, AUY -8.8%, RGLD -8.2%, FNV -6.8%, SLW -5%.
- Also lower: NEM -9.4%, AEM -7.9%, NG -7%, GOLD -4.8%, IAG -5.1%, HL -5.4%.
- ETFs: GDX, NUGT, GDXJ, GGN, DUST, SIL, JNUG, GLDX, JDST, SGDM, ASA, SLVP, SILJ, RING, JUNR, PSAU, TGLDX, GDJJ, GDXS, GDXX, GDJS
Mon, Jul. 20, 9:14 AM
Fri, Jul. 17, 2:58 PM
- Barrick Gold (ABX -4.9%) sinks to 24-year lows in Toronto trading, leading a rout among bullion miners as the yellow metal extends its selloff to five-year lows.
- ABX is under particular pressure, as the fall in gold casts doubt on the company’s strategy of shedding assets to pay down its $12.9B debt, as it "becomes harder and harder to sell those assets at any kind of reasonable value if metal prices are unwinding," Macquarie analyst Ron Stewart says.
- ABX reportedly is nearing a deal to sell its Zaldivar copper mine in Chile, and is looking for buyers for its 50% stake in its Kalgoorlie mine, among other properties.
- NEM -2.6%, GG -5.7%, GFI -1.1%, KGC -5.2%, AEM -5.1%, NG -2.2%, AGI -6.6%, AU -5.7%, GOLD -2.5%, SBGL -4.2%, BTG -6.4%, IAG -7.6%, EGO -7.6%, HL -3.5%, NGD -8.4%, AUY -2.9%, RGLD -2.9%, FNV -3.6%, SLW -3.3%.
- ETFs: GDX, NUGT, GGN, DUST, SIL, GLDX, SGDM, ASA, SLVP, RING, PSAU, TGLDX, GDXS, GDXX
Thu, Jun. 18, 12:46 PM
- Newmont Mining (NEM +1.6%) is reiterated with a Buy rating and $29 price target at Citigroup following its recent acquisition of the Cripple Creek & Victor gold mine from AngloGold (AU +4.3%).
- Citi cites NEM’s free cash flow generation profile at $1,200/oz. gold and further debt reduction opportunities, and says the transaction appears earnings accretive by 3.2% in 2016 while free cash contribution is not expected until 2017.
- NEM's decision to fund the sale by issuing equity was attributed to the need for capital to finish funding growth projects and desire to pay down $750M of debt this year, but the firm forecasts NEM will still generate $600M-plus/year in free cash flow (after project capex) from 2015-17 at $1,200/oz. gold.
Tue, Jun. 9, 10:23 AM
- AngloGold Ashanti (AU +8.5%) surges at the open following the sale of its Cripple Creek & Victor mine to Newmont Mining (NEM -1.5%), ending speculation it would have to issue shares in its effort to cut $3.1B in debt.
- CEO Srinivasan Venkatakrishnan says the sale of the Colorado mine for $820M plus 2.5% of future gold production will reduce AU’s net debt to its target level of 1.5x earnings.
- Proceeds from the sale represent ~25% of AU’s market value, while the asset produced less than 5% of the company’s gold, the CEO says, adding that the sale will save $200M on capital spending in the next two years.
- The sale benefits NEM too, Sterne Agee analysts say, adding a large long-life mine to its U.S. profile with expansion potential, improving geographic mix, lowering NEM's overall all-in sustaining costs profile, and appearing accretive on a production per share basis.
- However, Jefferies says the fact that NEM is funding the acquisition with an equity issue may indicate that NEM shares are overvalued.
Mon, Jun. 8, 4:36 PM
- Newmont Mining (NYSE:NEM) -1.5% AH after agreeing to acquire the Cripple Creek & Victor gold mine in Colorado from AngloGold Ashanti (NYSE:AU) for $820M in cash plus a 2.5% net smelter return royalty for gold production from potential future underground ore.
- NEM believes the deal will add 350K-400K oz./year of gold in 2016 and 2017 at all-in sustaining costs of between $825-$875/oz.
- To fund the deal, NEM plans to conduct a public offering of 29M common shares, with an underwriters option to purchase up to an additional 4.35M shares.
Fri, Jun. 5, 2:23 PM
- Newmont Mining (NEM -3.7%) agrees to sell its Waihi operations in New Zealand to OceanaGold (OTCPK:OCANF) for $101M, in a deal NEM says strengthens its balance sheet and gives it more financial flexibility.
- The deal also includes a $5M contingent payment and a 1% net smelter royalty on a recent discovery north of Waihi’s current operations.
- NEM shares are lower amid a broader selloff in mining stocks.
Mon, Apr. 27, 11:59 AM
- Newmont Mining (NEM +4%) is upgraded to Buy from Neutral with a $30 price target, raised from $26, at Credit Suisse, which cites the success of NEM's strategy to improve performance since its new CEO took on the reins in 2013.
- Credit Suisse says NEM has been able to achieve operational consistency, which the firm expects to continue going forward, and cost savings, which it believes is higher than the current perception in the market; NEM's balance sheet has strengthened considerably, and the miner's current cash flow multiple does not reflect its longer-than-average reserve life.
- NEM's Australian assets now benefit from lower cost structures which could open up new opportunities, the firm adds.
Newmont Mining Corp is engaged in the production of and exploration for gold and copper. It is also engaged in the production of copper, mainly through its Batu Hijau operation in Indonesia and Boddington operation in Australia.
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