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Newmont Mining Corporation (Holding Company) (NEM)

  • Mon, Jul. 27, 10:45 AM
    • Newmont Mining (NEM +0.8%) agrees to sell its 60% stake in the Valcambi gold refinery in Switzerland to a subsidiary of Indian jewelry company Rajesh Exports Ltd. for $119M
    • NEM says the sale is part of its plan to get back to its basics after buying its equity interest in the refinery 11 years ago.
    • Rajesh, the world's largest gold jewelry maker, says Valcambi's technology will help raise the capacity of its Indian refinery to 200 metric tons/year next year from 80 metric tons currently.
  • Wed, Jul. 22, 6:26 PM
    • Newmont Mining (NYSE:NEM) -0.9% AH after reporting Q2 earnings in line with analyst expectations, as lower oil prices and favorable exchange rates offset the impact of weaker metal prices.
    • Citing these factors and portfolio changes such as the acquisition of the Cripple Creek & Victor mine, NEM raises its gold production forecast and lowers its cost outlook.
    • NEM now expects attributable gold production of 4.7M-5.1M oz. in 2015, up from a prior forecast of 4.55M-4.9M oz., and sees production rising to 5.2M-5.5M oz. in 2017; consolidated all-in sustaining costs are now seen at $920-$980/oz. in 2015, down from an earlier forecast of $960-$1,020.
    • NEM projects full-year copper production of 140K-180K metric tons, up from 130K-160K metric tons, and affirms previous guidance for output to level out to 115K-135K metric tons in 2016 and 2017.
    • NEM's Q2 attributable gold production rose to 1.24M oz. of gold and 41K metric tons of copper, vs. 1.22M oz. of gold and 20K tons of copper in the year-ago quarter; all-in sustaining costs to produce an ounce of gold improved to $909/oz. from $1,063 a year ago.
  • Wed, Jul. 22, 4:21 PM
    • Newmont Mining (NYSE:NEM): Q2 EPS of $0.26 in-line.
    • Revenue of $1.9B (+8.0% Y/Y) misses by $70M.
    • Press Release
  • Wed, Jul. 22, 12:19 AM
    • Newmont Mining (NYSE:NEM) declares $0.025/share quarterly dividend, in line with previous.
    • Forward yield 0.53%
    • Payable Sept. 24; for shareholders of record Sept. 10; ex-div Sept. 8.
  • Tue, Jul. 21, 6:58 PM
    • Gold prices at five-year lows adds more pressure on an already stressed gold mining industry but mine closures are not expected to happen quickly as operators instead try to continue cutting costs, even as industry all-in costs already are expected to fall to an average of ~$1,335/oz. this year, down from nearly $1,700 in 2012.
    • Some significant mine closures could occur over time if gold stays near its current $1,100/oz. - as ~76% of producing gold mines are in the red at that price - but Goldcorp (NYSE:GG) CEO Chuck Jeannes says "I always warn people that [closures] are not going to happen as fast as you think they might because mine general managers are really good at keeping their mines alive."
    • With Newmont Mining (NYSE:NEM) kicking off earnings season for precious metals miners tomorrow, the current five-year compound return for mining equities is the lowest since the early 1980s; analysts are watching for potential dividend cuts at GG, Barrick Gold (NYSE:ABX), Centerra Gold (OTCPK:CAGDF) and Yamana Gold (NYSE:AUY).
    • Plenty of analysts are predicting further declines in gold's price; Goldman Sachs' Jeffrey Currie says the worst is yet to come, and that prices could fall below $1,000 for the first time since 2009.
  • Tue, Jul. 21, 5:35 PM
  • Mon, Jul. 20, 10:39 AM
  • 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%.
  • Mon, Jul. 6, 6:13 PM
    • Goldcorp (NYSE:GG) is started with an Outperform rating and $24 price target at Credit Suisse, which says it is better positioned to generate free cash than competitors Newmont Mining (NYSE:NEM) and Barrick Gold (NYSE:ABX).
    • The firm thinks GG’s sale of its Tahoe stake for gross proceeds of ~C$1B adds liquidity to the balance sheet, which remains the strongest among the senior producers; it estimates GG will end Q2 with ~$1B in cash, with the increase over Q1′s $365M allowing the miner to bridge the dividend funding gap while assets continue to ramp up.
    • Credit Suisse says GG’s improving free cash flow profile is driven by higher by-product production at Penasquito, the ramp up of Cerro Negro and Eleonore, and lower taxes at Pueblo Viejo beginning in 2017.
    • Gold mining stocks generally finished higher in today's trade due to increased Greece jitters: GG +3.1%, NEM +0.8%, ABX +2.6%.
  • Tue, Jun. 23, 3:58 PM
    • Newmont Mining (NEM +0.6%) is reinstated with a Buy rating and $30 price target at Credit Suisse, which praises the recent acquisition of the Cripple Creek & Victor mine which the firm says offers a long life and low geopolitical and technical risk.
    • Cripple Creek & Victor could generate ~$100M in free cash flows over 2016-17 at $1,250/oz. gold, the firm says, with similar results in following years after NEM completes planned optimizations including 10% lower mining costs through reduced waste stripping and eliminating marginal ounces and 2% improvement in mill recoveries via enhanced flotation.
    • The firm expects NEM to be able to increase CC&V’s NAV within the next 18 months through resource conversion and optimizations, in view of the company’s “consistent operational track record."
  • 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.
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  • Thu, Jun. 11, 6:52 PM
    • Newmont Mining (NYSE:NEM) was upgraded to Outperform from Sector Perform with a $30 price target today at RBC, citing improvements in its operating momentum and the disappearance of an M&A-related overhang.
    • The firm says NEM should benefit in 2015 and 2016 from high-grade copper and gold production at its Batu Hijau mine in Indonesia, along with other catalysts such as new production from its Turf and Long Canyon deposits in Nevada, and the Merian project in Suriname.
    • NEM is down 8% since announcing its acquisition of the Cripple Creek & Victor gold mine from AngloGold US$820M earlier this week, and RBC thinks the price weakness presents an attractive buying opportunity.
  • 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.
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  • 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.
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Company Description
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.
Industry: Gold
Country: United States