Newmont Mining Swings to Profit on Steady Gold and Copper Production

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    Gold and copper producer Newport Mining reported better…



    Barrick Gold (GOLD) Confirmed Mulling Takeover offer for Newmont Mining (NEM)

    Canadian gold mining company Barrick confirmed reports from the Globe and Mail it is considering a $19 billion hostile bid for Colorado-based Newmont, which is the world’s largest gold miner by market cap.

    “Barrick Gold Corporation today confirmed that the Company has reviewed the opportunity to merge with Newmont Mining Corporation in an all-share nil premium transaction,” the firm said in a statement.

    The deal would see the world’s largest gold miner by market cap acquired by the second largest. Newmont Mining has a market value of $18.9 billion, while Barrick Gold is worth $15.6 billion.

    Barrick Gold said no decision had been made on whether to go ahead with a bid.

    Barrick Gold stock fell 1.2% to 13.16 while Newmont Mining stock jumped nearly 6% to its best level in nearly seven months, also fueled by strong earnings late Thursday. Shares are up some 12% this week.

    Goldcorp stock fell 2.3%. Newmont Mining last month agreed to buy Goldcorp for $10 billion. Goldcorp stock investors may fear that a Barrick Gold takeover of Newmont Mining could affect the Newmont-Goldcorp deal.

    The Barrick Gold-Newmont Mining deal buzz continues a recent run of gold mining M&A activity. Last year Barrick Gold agreed to buy Randgold Resources for $5.4 billion. The Newmont Mining-Goldcorp deal followed early this year.


    Newmont Mining Reject Barrick Gold’s ‘negative premium’ hostile buyout bid

    Newmont Mining Corp. NEM said Monday its board of directors have unanimously rejected Barrick Gold Corp.’s GOLD hostile buyout bid, saying the “all-stock negative premium proposal” posed “significant risks” to its shareholders.

    Newmont shares fell 0.7% in premarket trade and Barrick’s stock dropped 1.0%.

    Newmont said it determined that the previously announced $10 billion deal to buy Goldcorp Inc. GG, +0.09% represented a “superior value creation opportunity.”

    The Barrick unsolicited proposal to buy Newmont valued Newmont at nearly $18 billion, while the terms of the bid valued Newmont shares at an 8.2% discount.

    “Our thorough review of Barrick’s unsolicited proposal and its associated risks has reaffirmed our conclusion that the combination of Newmont and Goldcorp represents the best opportunity to create value for Newmont’s shareholders and deliver industry-leading returns for decades to come,” said Newmont Chief Executive Gary Goldberg.

    Over the past 12 months, shares of Newmont dropped 10.8%, Barrick rose 6.7%, the VanEck Vectors Gold Miners ETF GDX, -2.43% gained 1.0% and the S&P 500 SPX, +0.69% tacked on 4.2%.


    Newmont $NEM stock price has risen nicely with the bounce in gold bullion and futures.


    Barrick Gold Corp. (NYSE: GOLD was downgraded Tues to Equal Weight from Overweight at Barclays, but price target was raised to $18 from $15 in the call.

    Barrick Gold has a 52-week trading range of $9.53 to $16.68

    Market Summary > Barrick Gold Corp
    NYSE: GOLD 17.22 USD +0.50 (2.99%)


    [color=red][b]Royal Gold Inc. (NASDAQ: $RGLD) On Tuesday was downgraded to Underweight from Equal Weight at Barclays, Raymond James downgraded it to Market Perform from Outperform.
    Has 52-week range of $70.16 to $111.16

    [color=green][b]Royal Gold Inc
    NASDAQ: RGLD · July 18, 4:42 PM EDT
    117.50 ▲ 4.08 (3.60%)[/b][/color]


    Freeport-McMoRan Inc. (NYSE: FCX) was raised to Equal Weight from Underweight at Barclays.

    Freeport-McMoRan Inc
    NYSE: FCX · July 18, 4:46 PM EDT
    11.15▲ 0.10 (0.91%)


    Newmont lowers 2020 guidance after halting four mines over COVID-19

    Newmont (NYSE: NEM, TSX: NGT), the world’s largest gold miner, withdrew last Monday its full-year 2020 guidance after placing four of its operations into temporary care and maintenance as part of global efforts to contain the Covid-19 pandemic.

    The company now expects to produce about 1.4 million attributable gold ounces and roughly 325,000 co-product gold equivalent ounces in the first three months of the year. This, despite mines representing 80% of its production outlook for 2020 are currently operating in line with the output targets for the year, Newmont said.

    The miner had earlier forecast attributable gold production of 6.4 million ounces this year and between 6.2 and 6.7 million ounces longer-term through 2024.

    “We currently have no confirmed Covid-19 cases among our workforce and are taking … measures including social distancing at all our sites,” the miner said.

    Yet, in order to protect nearby communities and align with travel restrictions or health considerations, the company has taken further measures at its operations in Argentina, Peru, and Canada.

    Argentina’s travel restrictions to the end of March mean Newmont has had to limit personnel at its Cerro Negro mine. Last week, the company announced it would scale down operations at its Yanacocha gold mine in Peru due to in-country restrictions.

    At its Musselwhite mine in Ontario and Eléonore, in Quebec, Canada, Newmont is limiting staff to prevent possible transmission.

    Newmont added it was not facing any delays in shipping or transportation.


    Newmont Earnings Rose Ninefold rise in first quarter thanks to higher gold prices and increased production

    NEM’s net income rose to $822m in the three months to March 31, from $87m in the same period a year earlier. Revenues in the quarter rose 43 per cent to $2.58bn. The company said the average realized price for its gold had risen by $291 an ounce from a year earlier to $1,591 a troy ounce.

    The gold price is up 12 per cent since the start of the year as investors seek haven assets while the coronavirus crisis wreaks havoc in other markets. The earnings also reflect a rise in output because of Newmont’s $10bn acquisition last year of Canada’s Goldcorp.

    Gold production in the quarter rose 20 per cent to 1.5m ounces.

    “Despite the disruption from Covid-19 we are well positioned to withstand this pandemic,” said Tom Palmer, Newmont chief executive.

    The company said that while there had been no confirmed cases of coronavirus among its employees, it had significantly reduced the number of workers at its mines.

    Newmont also reduced production at some operations “to reduce the risk of transmission to nearby communities with limited healthcare capacity”.

    In March Newmont halted operations at four mines in Argentina, Canada and Peru because of the virus and last month said it was reducing production at its Peñasquito mine in Mexico.

    However on Tuesday it said it was resuming output at three of the sites and that mines representing 90 per cent of its planned 2020 production remained in operation. The costs of production have also risen because of the acquisition, with the all-in sustaining cost of gold production up 14 per cent to $1,030 an ounce.

    Shares in Newmont have risen 44 per cent this year to trade at $62.74 on the New York Stock Exchange.

    Newmont is the world’s largest gold miner and has been a big beneficiary of the 12% gain in the metal in 2020. Its stock is up 37% for far this year, to $60, making it one of the top performers in the S&P 500 index.

    The Newmont, CEO Say the Denver-based company has never been better shape during its 99-year history with rising gold prices Will Boost . Gold mining is the largest and fastest growing operating division of the company, contributing 93% of total revenues in 2019.

    Gold revenue growth has been key to Newmont’s stock price appreciation of over 82% from $34 at the beginning of 2019 to about $62 as of 6th May 2020. A major part of this appreciation, i.e. 38%, came about in the last 3 months since the WHO announced a global health emergency on 31st January 2020. We discuss Newmont Valuation analysis in full, separately.


    [color=green][size=5][b]Newmont Corp. (NYSE: NEM) was reiterated as Buy and its target was raised to $74 from $70 at Deutsche Bank.

    Shares closed down over 1.5% at $55.95 on Tuesday

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