|Bid||31.61 x 800|
|Ask||31.62 x 1200|
|Day's Range||31.03 - 31.75|
|52 Week Range||29.16 - 42.04|
|PE Ratio (TTM)||103.87|
|Earnings Date||Oct 24, 2018 - Oct 29, 2018|
|Forward Dividend & Yield||0.56 (1.84%)|
|1y Target Est||42.85|
The analyst at JPMorgan Chase & Co. (JPM) took action on gold mining stocks on Monday. JPMorgan maintained its neutral rating on Barrick Gold Corp. (ABX). The stock closed up 2.4% Monday, and the market capitalization is $12.09 billion.
Details the 52-week lows of the following companies: Schlumberger, Las Vegas Sands, General Motors, Southern Co., The Hartford Financial Services Group and Newmont Mining
Newmont Mining Corporation (NEM) announced that for an unprecedented fourth year running, the Company was named the Metals and Mining sector leader by the Dow Jones Sustainability World Index (DJSI World). Newmont was the first gold company named to the index in 2007, and has been included on the DJSI North America Index every year since 2006. “This recognition is an important reflection of how well we are doing to create value and improve lives for all of our stakeholders,” said Gary Goldberg, President and Chief Executive Officer.
On September 4, 2018, Ashland (ASH) inaugurated its new composites research and development technical center in Jinling Valley, Shanghai. The R&D center is expected to strengthen ASH’s position in the region and is expected to act as Asia-Pacific’s technical center of ASH’s composite segment. The center is approximately 1,500 square meters and will have 20 scientists and engineers.
DENVER , Sept. 10, 2018 /CNW/ - Newmont Mining Corporation (NEM) Newmont (the Company) today announced that the Company has entered into a subscription agreement (the "Subscription Agreement") pursuant to which it purchased 29,213,186 common shares("Common Shares") of Orosur Mining Inc. ("Orosur") at a price of C$0.091 per Common Share for total consideration of US$2,000,000 (or C$2,658,400 based on an exchange rate of US$1 = C$1.3292 ) (the "Private Placement"). Prior to completion of the Private Placement, Newmont did not own any Common Shares.
After a downward summer for the price of gold and gold mining stocks in general, investors may consider adding Goldcorp (NYSE:GG) stock to their portfolio for the rest of the year. There are several long strategies in GG stock that could lead to impressive profits. With a holding of mines in both North and Latin America, Goldcorp is the largest Canadian gold miner by market capitalization.
Due to the inverse relationship with gold, the U.S. dollar has sent the bullion back to $1,190.85 per troy ounce, after the precious metal closed the last week of August up 0.4% to $1,202.45 per troy ounce. Warning! GuruFocus has detected 4 Warning Signs with NEM. One of the miners that fell the most is Newmont Mining Corp. (NEM).
Citigroup (C) analyst Alexander Hacking upgraded Barrick Gold to “neutral” from “sell” on August 28. As reported by The Fly, Hacking mentions that he finds Barrick compelling, as its stock price has fallen ~30% in 2018. The target price for Agnico Eagles Mines (AEM) was reduced from $45 to $38, Goldcorp (GG) was reduced from $16 to $14, and Newmont Mining (NEM) was reduced from $42 to $36.
Now that we’ve considered analysts’ revenue estimates for the senior gold miners under review (GDX) in this series, let’s take a look at analysts’ EBITDA estimates.
In the previous article, we looked at analysts’ ratings for senior gold mining companies. In this article, we’ll look at analysts’ estimates for those companies’ (GDX) (JNUG) revenues going forward.
In this article, we’ll look at the market sentiments for these companies. We’ll look at analysts’ recommendations, target prices, and potential upsides or downsides for these gold miners.
FCF (free cash flow) generation is important for gold mining companies (SGDM) (GDX). This excess cash helps miners optimize their financial leverages, invest in projects that can drive long-term value, and provide shareholder returns.
To a point, companies try to optimize their debt-to-equity mixes. In fact, it isn’t always bad to carry debt if a company can repay it through earnings.
As precious metals prices started weakening, investors shifted their focus from high-leverage miners (GDX) (GDXJ) to low-leverage miners with sound growth plans, leading miners to trim their balance sheets. Newmont Mining’s (NEM) net debt at the end of the second quarter was ~$1 billion compared to $1.9 billion at the end of 2016. The improvement was due to its EBITDA improvement and net debt reduction.
AISC (all-in sustaining costs) is an encompassing measure that helps us compare gold miners’ performances. Barrick Gold (ABX) reported AISC of $856 per ounce and a cost of sales of $882 per ounce in the second quarter. Its cost of sales reached 22.0%, and its AISC was 21.0% higher YoY (year-over-year).
Among the gold miners (RING) (GDX) we’re discussing in this series, only Newmont Mining (NEM) beat analysts’ expectations in the second quarter. Stock reactions to the companies’ beats and misses and the extent of gold’s beats and misses varied among miners.
Newmont Mining (NEM) saw its debt rise at the peak of the cycle due to expensive acquisitions. These companies are now focusing on steadily paying off their debt.
What Could Drive Newmont Mining Stock in the Rest of 2018? Newmont Mining is poised to overtake Barrick Gold as the world’s largest gold producer in 2018. For more on this, please read Barrick Gold versus Newmont Mining: Comparing Miners in 2018 and Beyond.
What Could Drive Newmont Mining Stock in the Rest of 2018? In the second quarter, Newmont Mining (NEM) produced 1.16 million ounces, marking a 14.0% decline YoY (year-over-year). Newmont Mining (NEM) maintained its gold production guidance of 4.9 million–5.4 million ounces in 2018 and 2019.
Three gold mining stocks are trading cheaply since their share prices are close to a 52-week low. Goldcorp is trading around $10.74 per share on the New York Stock Exchange. The current share price is only 36 cents above the 52-week low of $10.38 and nearly 45% below the 52-week high of $15.55.