South Africa's Financial Cop Beefs Up to Take Down Online Scams
The Financial Sector Conduct Authority will spend 200 million rand ($11 million) over the next 18 months to build up the supervisory muscle to beef up monitoring and enforcement.
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Yahoo
2 hours ago
- Yahoo
Newmont Corporation: A Good Quarter Overall With Record Free Cash Flow
1. Introduction: Newmont Corporation: The U.S. mining industry's gold standard. The well-known gold mining company Newmont Corporation (NYSE:NEM) is based in the United States and operates in North America, South America, Australia, and Africa. This article is an update to one I wrote on March 18, 2025. As the top producer of gold in the world, Newmont Corporation also holds one of the biggest gold reserves in the business. The company reported 134.1 million ounces of attributable gold reserves at the end of 2024. About 125.5 million ounces of this total are regarded as Tier 1 reserves, which represent long-lived, high-quality assets with robust margins and minimal geopolitical addition to its gold holdings, Newmont has sizable reserves of byproduct metals. The company's attributable reserves of metals, including copper, silver, lead, zinc, and molybdenum, total about 89.5 million gold equivalent ounces. Warning! GuruFocus has detected 7 Warning Signs with NEM. The second quarter of 2025 earnings was announced by Newmont Corporation on July 24, 2025. The following shows the revenue per metal for 2Q25. Gold accounted for 86.2% of the total revenue. As of the second quarter of 2025, Newmont Corporation remains the world leader in gold production, with a targeted portfolio of about ten Tier 1 producing mines. These include large operations that are renowned for their size, longevity, and low cost profiles, such as Tanami, Boddington, Ahafo, Penasquito, and Cadia. In 2025, Newmont completed its strategic divestiture program, selling six non-core assets, including Musselwhite, Eleonore, and Akyem. These sales generated up to $4.3 billion in proceeds, strengthening the company's balance sheet. This move allowed Newmont to focus on core operations while returning value to shareholders through disciplined portfolio management and cash flow optimization. Invest in Gold Thor Metals Group: Best Overall Gold IRA Priority Gold: Up to $15k in Free Silver + Zero Account Fees on Qualifying Purchase American Hartford Gold: #1 Precious Metals Dealer in the Nation Newmont also holds 38.5% of Nevada Gold Mines, a joint venture with Barrick Gold (NYSE:B) that consists of several lucrative locations in Nevada. By concentrating more on high-quality operations following the recent sale of non-core assets, Newmont has reaffirmed its dedication to ethical mining, operational excellence, and long-term value creation for stakeholders and shareholders. The mines that have produced gold in 2Q25 for Newmont are listed below. Note: Others in the chart represent the gold production residual from the mines sold. Newmont produced about 1.478 million ounces of gold in 2Q25, which was marginally less than the previous year because of recent divestitures of more expensive, non-core assets, which was an excellent move in my opinion. In 2Q25, Newmont faced a mixed quarter. While higher grades at Cadia and Penasquito boosted output, challenges emerged elsewhere. A serious safety incident at the Red Chris project halted operations after two underground collapses. Meanwhile, the Merian mine in Suriname faced a 48% production drop and rising costs, prompting layoffs of up to 15% of staff. Despite these setbacks, key operations like Nevada Gold Mines and Pueblo Viejo performed well, positioning Newmont for a stronger second half. The gold equivalent production was 1.87 million GEOs, with 393,000 gold equivalent ounces this quarter from co-product metals. The company profited from a robust gold market despite the decline in production, selling its gold at an average realized price of roughly $3,320 per ounce, which was a considerable increase over the previous year, as we can see below: Gold prices are expected to remain strong through the second half of 2025 and into 2026, driven by a mix of economic uncertainty and structural demand. Central banks, especially in emerging markets, continue to accumulate gold as a hedge against inflation and currency risk. At the same time, constrained mine supply and high sovereign debt levels in major economies support gold's appeal. With real interest rates still low and the U.S. dollar under pressure, gold retains its position as a preferred safe-haven asset. Adding to the bullish sentiment, the U.S. labor market showed unexpected weakness in July. Only 73,000 jobs were created, which is far below expectations, and, more importantly, downward revisions to previous months signaled a significant slowdown. Despite Jerome Powell's wait-and-see stance, this labor softness raises the possibility of rate cuts by the Federal Reserve, possibly as early as September. Lower rates would probably help gold prices and further devalue the dollar. When taken as a whole, these patterns suggest that the gold market will remain strong into 2026. For Newmont's stock, rising gold prices are a potent tailwind that boosts investor appeal and profitability. Since the price of gold is significantly higher than the company's all-in sustaining costs, which in 2Q25 averaged $1,593 per ounce (see chart below), Newmont enjoys remarkable margins, which support robust cash flow and profits. However, a tightening operating environment is indicated by declining production volumes and rising costs, which puts pressure on competitiveness and efficiency. Despite these significant obstacles, Newmont is still in a strong position to profit from record gold prices because of its scale and strong margin. The market's perception of this strengthens the stock's long-term investment case as a strong combination of upside and resilience. For those who have concerns about NEM's performance compared to gold, it's important to understand the differences between gold mining stocks and physical gold. Gold mining stocks represent ownership in companies that explore, extract, and sell gold. The value of these stocks is influenced by gold prices, the performance of the mining company, and production costs. In contrast, gold bullion refers to physical gold, such as bars or coins, which is valued solely based on its metal content. Investing in bullion provides direct exposure to gold, while investing in stocks involves additional operational and market risks. 2. Critical analysis of the second quarter results. I saw Newmont's second quarter of 2025 as a turning point for the company and the gold industry as a whole. The huge increase in revenue, which came in at $5.317 billion, well above expectations, was what most impressed me. Revenue topped $5 billion for the third consecutive quarter. Newmont reported a strong net income of $2.061 billion, or $1.85 per diluted share, in 2Q25, marking a $170 million increase from the previous quarter. Adjusted net income was $1.6 billion, or $1.43 per share, comfortably beating analyst expectations. A notable $699 million gain from asset divestments boosted reported profits but is considered a one-time event. It wasn't just luck; it was powered by an average gold price of around $3,320 per ounce, a figure that would have seemed unrealistic just a year ago. That pricing strength, combined with operational discipline, albeit with some technical issues, helped Newmont unlock serious value. But even more impressive was the company's record free cash flow of $1.71 billion (see chart below). In a capital-intensive business like mining, that kind of liquidity is rare and crucial. It provides Newmont options: reward shareholders, reduce debt, or reinvest in high-return projects. And the business is doing something about it. The company made it apparent that it is confident in its strategy and financial situation this quarter by authorizing a $3 billion share buyback in addition to announcing a quarterly dividend of $0.25 per share. The fact that Newmont was still lowering its net debt to $480 million was heartening (see chart below). After several asset sales and careful capital management, net debt has significantly decreased. The company is making its balance sheet more flexible, which is exactly what it needs in a volatile commodity environment. To me, 2Q25 wasn't just about strong gold prices. It was about what Newmont did with them. Solid revenue, record cash flow, and a cleaner balance sheet show this is a company not just surviving the gold cycle but mastering it. 3. Technical analysis: Ascending Channel Pattern. Note: The chart has been adjusted to account for the dividend. Newmont is currently trading within an ascending channel pattern, with resistance at $70.3 and support at $64. The relative strength index (RSI) is at 71, indicating an overbought situation with sell signal flashing. Please look at the chart above for more information. For 5060% of your position, I advise using a Last-In-First-Out (LIFO) approach. With a second resistance at $72, set your sell target price between $69.75 and $71. It is advisable to use a LIFO strategy for the majority of your investment due to the current level of market uncertainty. Most people agree that an ascending channel is a bullish continuation pattern that forms when the price continuously increases between a support level and a resistance level. However, it often ends with a breakdown, which is unlikely now but could occur in a few weeks. Making decisions has become increasingly challenging in the current climate of extreme volatility and uncertainty, underscoring the importance of maintaining a healthy cash position. A wise trading strategy is to watch for the next significant resistance level, which is close to $71, and take small profits gradually above the $69.75 level. On the other hand, a more desirable accumulation zone between $65 and $63 might appear if a breakdown pattern develops. Starting a modest position around the $65 support level may make sense for those looking for early exposure, particularly given the increasing likelihood that the Federal Reserve will lower interest rates in September, which could lead to a rebound. However, a more serious accumulation should be considered between $62 and $59.4. Note: It is essential to frequently update the TA chart to remain relevant, as we operate in an extremely volatile environment. This article first appeared on GuruFocus.
Bloomberg
4 hours ago
- Bloomberg
Kenya in Talks With Etihad Rail, Plans to Raise $4 Billion to Extend Line
Kenya plans to raise as much as $4 billion by securitizing an import levy to fund the extension of a China-built railway, and is in talks with Etihad Rail to run freight operations on the line. The East African nation will use its so-called railway development levy to raise funds to build a section to the southwestern Kenyan city of Kisumu and Malaba on the Ugandan border, Transport Secretary Davis Chirchir said. The Treasury collects about 50 billion shillings ($387 million) a year from the tariff that's charged at a rate of 2% of the value of imports into Kenya, according to the minister
News24
6 hours ago
- News24
‘Our president is not a racist': Kunene hits back at McKenzie critics amid podcast, X posts uproar
Suspended PA deputy rallies behind McKenzie, blasting racism claims as a ploy to distract from coloured community slurs. McKenzie orders Equality Court action over the Open Chats Podcast insult storm. Podcast outrage fuels fiery debate on where free speech ends and hate speech begins. Suspended Patriotic Alliance (PA) deputy president Kenny Kunene has held nothing back in defending the party's leader Gayton McKenzie, declaring that neither of them are racist. He has vowed that the party not be deterred and will pursue legal action over offensive remarks made about the coloured community on the Open Chats Podcast. In an X post, Kunene, who was suspended by McKenzie for a month from party political work and duties as MMC, said: I and all members of Patriotic Alliance know that our president is not a racist and we stand cement vas with pres. PA will proceed with the Equality Court case and other institutions to deal with the racist insults peddled on the podcast. Salute. Kenny Kunene Kunene's suspension came after he was found at the house of the alleged DJ Sumbody murder mastermind Katiso Molefe when he was arrested. Following calls by political parties for McKenzie to resign amid racism allegations, Kunene accused political opponents of trying to 'divert attention' from the podcast scandal by resurfacing his old 2011 posts, insisting they were not racist but rather observations about the exploitation of African foreign nationals by white-owned businesses. @GaytonMcK is unfairly attacked on old tweets of 2011 to divert attention from the insensitive and rude insults on coloured community in a podcast. His crime was to defend the coloured people and take action on those insensitive, rude and arrogant young people. I and all members… — Kenny Kunene (@Kenny_T_Kunene) August 9, 2025 When asked by another X user if he considered posts racist, Kunene replied: 'Yes, they are not racist.' He also painted a personal picture of McKenzie's background to drive home his defense: This man @GaytonMcK has never been, is not and will never be a racist. His mother is a South Sotho woman from Batho location in Mangaung, and his father is coloured. Even in prison he brought a team together made up of black, white, indian and coloured inmates. Your campaign, Tony Yengeni and your cronies, will never succeed. We see you. @OnsBaizaNie. Kenny Kunene The controversial episode of the Open Chats Podcast, which has since been edited to remove the offensive parts, featured a disturbing exchange among the hosts. During a conversation about racial stereotypes, the hosts made crude and damaging claims about coloured people, implying that intra-family sexual relations were common and linking this to mental illness. The clip, which spread quickly on social media, triggered widespread outrage. Though the podcast team apologised, claiming they did not intend to harm or disrespect, the backlash showed no signs of slowing. Deputy Minister in the Presidency for Women, Youth and Persons with Disabilities Mmapaseka Steve Letsike condemned the remarks, warning that platforms with mass reach cannot 'weaponise speech' under the guise of open dialogue. McKenzie promised a strong legal and political response, giving the SABC seven days to cancel the show and threatening to mobilise 10 000 – 20 000 of his party's supporters in protest. Realising that the podcast had actually been aired on a MultiChoice platform, in a video update posted on Facebook, McKenzie said that he had spoken to MultiChoice, which he said was 'disgusted' by the remarks and would not renew the podcast's contract. If coloured people made those remarks about any other race group, it would be front-page news. We must never allow people to become that comfortable with disrespecting us. Gayton McKenzie Kunene's defence of McKenzie comes as he faces his own legal woes. This as the Johannesburg High Court recently ruled that his 2021 description of EFF leader Julius Malema as a 'cockroach' was hate speech. Kunene is now required to apologise both in writing and orally to Malema. However, Kunene maintains his comments were provoked by repeated insults from Malema, who had called him a 'pantiti', and says he was merely responding in kind. The Open Chats Podcast fallout has reignited South Africa's debate on where free expression ends and hates speech begins. Both Letsike and McKenzie have stressed that new media platforms must be held to the same ethical standards as traditional broadcasters. As Letsike put it: 'We value freedom of expression, but it must be balanced with accountability. Hate speech is not to be equated to free speech. It can escalate into incitement, which is constitutionally prohibited.'
