Newmont: This Is How We Are Betting On Gold
In the latest trading session, Newmont Corporation (NEM) closed at $38.11, marking a -0.68% move from the previous day.
The glitter of gold is losing its luster for two mining giants, Barrick Gold Corp GOLD and Newmont Corp NEM, as both stocks have hit a technical Death Cross —a bearish signal when the 50-day moving average falls below the 200-day moving average.
When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important?
Newmont Corporation is a 'Strong Buy' due to its dominant position in gold mining and solid copper exposure, with favorable price forecasts for both metals. The company benefits from operational efficiency, prudent capital allocation, and a strategic portfolio, including the transformative acquisition of Newcrest Mining. Newmont's valuation is attractive, with a forecasted P/E ratio decline and a DCF model suggesting a fair share price of $43.25, indicating 13% upside potential.
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Newmont (NEM) has been one of the stocks most watched by Zacks.com users lately. So, it is worth exploring what lies ahead for the stock.
Newmont Corporation (NYSE:NEM, TSX:NGT, ASX:NEM, ETR:NMM) has let go of nearly a dozen managers as part of a major corporate restructuring effort, according to Bloomberg. The layoffs include a member of its executive team, Bloomberg reported.
While NEM's robust portfolio of projects and a healthy growth trajectory paint a promising picture, its high production costs warrant caution.
NEM expects gross proceeds of up to $275 million, including a cash consideration of $100 million due at closure.
Newmont has underperformed due to operational challenges, but improving efficiency and divesting non-core assets present a significant investment opportunity. Despite high All-in Sustaining Costs (AISC) of $1,600/oz in Q3 2024, Newmont is focused on increasing margins through key project ramp-ups. Barrick and AEM reported lower AISCs, highlighting NEM's current inefficiencies but also its potential for margin improvement.