Latest news with #NEM
Yahoo
4 hours ago
- Business
- Yahoo
Newmont Corporation (NEM): A Bull Case Theory
We came across a bullish thesis on Newmont Corporation (NEM) on Business Model Mastery's Substack. In this article, we will summarize the bulls' thesis on NEM. Newmont Corporation (NEM)'s share was trading at $52.72 as of 30th May. NEM's trailing and forward P/E were 12.01 and 8.41 respectively according to Yahoo Finance. A global gold powerhouse, this miner delivered 7 million ounces of gold production at an average realized price of $2,408/oz in 2024, while maintaining industry-leading cost discipline with all-in costs of just $1,126/oz. This translated into an impressive gross margin of over $1,280/oz before overhead, showcasing operational efficiency and pricing power. Beyond gold, the company's multi-metal profile added significant value, with co-product contributions of 338 million pounds of copper, 33 million ounces of silver, and 569 million pounds of zinc. These volumes not only diversified earnings but also helped offset gold production costs, making operations more resilient across commodity cycles. With assets spanning 15 countries and a strong footprint in stable jurisdictions, the company benefitted from surging demand in key markets—most notably Japan and South Korea, where sales jumped over 275% and 100% respectively. Its dominance is underpinned by ownership of the largest share of Tier 1 gold mines globally, defined as assets producing over 500,000 ounces annually with 10+ year mine lives and cost structures in the lower half of the global cost curve. This tiered structure ensures long-term cash flow durability and strategic flexibility. The company also holds a commanding 134.1 million ounces of proven gold reserves, supported by over a century of geological data, reinforcing its exploration and development advantage. Its leadership in environmental and sustainability efforts is notable, including a 2030 target to reduce emissions by 32% and issuing the industry's first $1 billion sustainability-linked bond. Together, these factors build a compelling case for long-term value and stability. For a comprehensive analysis of another standout stock covered by the same author, we recommend reading our summary of this on Harley Davidson, Inc. (HOG). Newmont Corporation (NEM) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 65 hedge fund portfolios held NEM at the end of the first quarter which was 69 in the previous quarter. While we acknowledge the potential of NEM as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock. READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock. Disclosure: None. This article was originally published at Insider Monkey.
Yahoo
11 hours ago
- Business
- Yahoo
NEM vs. KGC: Which Gold Mining Stock is a Better Pick Now?
Newmont Corporation NEM and Kinross Gold Corporation KGC are two prominent players in the gold mining space with global operations and diversified portfolios. While gold prices have fallen from their April 2025 highs, they remain favorable. The yellow metal is gaining from safe-haven demand triggered by trade and geopolitical uncertainties, and is currently hovering above the $3,300 per ounce level. The Trump administration's move to double steel and aluminum tariffs to 50% has led to increased tensions between the United States and its key trading partners. Escalating Russia-Ukraine tensions have also resulted in heightened geopolitical risks. Amid this backdrop, comparing these two major gold producers is particularly relevant for investors seeking exposure to the precious metals prices have rallied roughly 28% this year, courtesy of aggressive trade policies, including sweeping new import tariffs announced by President Donald Trump, intensified global trade tensions and increased investor anxiety. Also, central banks worldwide have been accumulating gold reserves, led by risks arising from Trump's policies. Prices of the yellow metal skyrocketed to a record high of $3,500 per ounce on April 22 amid President Trump's criticism of Federal Reserve Chair Jerome Powell and call for a reduction in interest rates. Increased purchases by central banks, hopes of interest rate cuts, and trade and geopolitical tensions are expected to support gold prices. Let's dive deep and closely compare the fundamentals of these two mining giants to determine which one is a better investment now. Newmont continues to invest in growth projects in a calculated manner. The company is pursuing several projects, including Tanami Expansion 2 in Australia, the Ahafo North expansion in Ghana and Cadia Panel Caves in Australia. These projects should expand production capacity and extend mine life, driving revenues and acquisition of Newcrest Mining Limited has also created an industry-leading portfolio with a multi-decade gold and copper production profile in the most favorable mining jurisdictions globally. The combination of Newmont and Newcrest is expected to deliver significant value for its shareholders and generate meaningful synergies. NEM has achieved $500 million in annual run-rate synergies, following the Newcrest buyout. Newmont also remains committed to divesting non-core businesses as it shifts its strategic focus to Tier 1 assets. In March 2025, the company completed the divestment of three non-core assets — the Musselwhite and Eleonore operations in Canada and the Cripple Creek & Victor (CC&V) operation in Colorado. The sale of these three additional non-core assets resulted in total after-tax cash proceeds of $1.7 billion before closing adjustments. Furthermore, NEM completed its non-core divestiture program in April with the sale of its Akyem operation in Ghana and its Porcupine operation in Canada, generating total after-tax cash proceeds of roughly $850 million before closing adjustments. Total gross proceeds from disclosed divestitures are expected to reach $4.3 billion, including $3.8 billion from non-core divestitures and $527 million from the sale of other investments. Newmont has a strong liquidity position and generates substantial cash flows, which allow it to fund its growth projects, meet short-term debt obligations and drive shareholder value. At the end of the first quarter of 2025, Newmont had liquidity of $8.8 billion, including cash and cash equivalents of around $4.7 billion. Its operating cash flow from continuing operations soared roughly 162% year over year to around $2 billion in the first quarter. NEM also generated a record free cash flow of $1.2 billion in the quarter. NEM delivered $1 billion to its shareholders through dividends and share repurchases and reduced debt by $1 billion since the beginning of 2025. Its long-term debt-to-capitalization is around 20%. NEM offers a dividend yield of 1.8% at the current stock price. Its payout ratio is 24% (a ratio below 60% is a good indicator that the dividend will be sustainable). Backed by strong cash flows and sound financial health, the company's dividend is perceived as safe and reliable. Kinross has a strong production profile and boasts a promising pipeline of exploration and development projects. Its key development projects and exploration programs, including Great Bear in Ontario and Round Mountain Phase X in Nevada, remain on track. These projects are expected to boost production and cash flow and deliver significant value. KGC also completed the commissioning of its Manh Choh project and commenced production during the third quarter of 2024, leading to a substantial increase in cash flow at the Fort Knox and Paracatu, the company's two biggest assets, remain the key contributors to cash flow generation and production. Tasiast remains the lowest-cost asset within its portfolio, with consistently strong performance. Tasiast achieved record annual production and cash flow in 2024 and is on track to meet its full-year 2025 guidance. Paracatu saw a strong start to the year, with first-quarter production rising on strong grades and improved mill recoveries. KGC has a strong liquidity position and generates substantial cash flows, which allows it to finance its development projects, pay down debt and drive shareholder value. The company ended the first quarter with solid liquidity of roughly $2.3 billion. Kinross also generated record free cash flows of around $1.3 billion in 2024, driven by the strength in gold prices and strong operating margins. Free cash flow also more than doubled year over year to $370.8 million in the first quarter. KGC repaid $800 million of debt during 2024 and the remaining $200 million of its term loan in the first quarter, reducing its net debt to around $540 million. Its long-term debt-to-capitalization is 14.4%. KGC also offers a dividend yield of 0.8% at the current stock price. It has a payout ratio of 14%, with a five-year annualized dividend growth rate of about -0.1%. Year to date, NEM stock has risen 46.5%, while KGC stock has racked up a gain of 66.8% compared with the Zacks Mining – Gold industry's increase of 54.4%. Image Source: Zacks Investment Research NEM is currently trading at a forward 12-month earnings multiple of 12.59. This represents a roughly 10% discount when stacked up with the industry average of 14X. Image Source: Zacks Investment Research Kinross is trading at a premium to Newmont. The KGC stock is currently trading at a forward 12-month earnings multiple of 13.37, lower than its industry. Image Source: Zacks Investment Research The Zacks Consensus Estimate for NEM's 2025 sales and EPS implies a year-over-year rise of 2% and 20.1%, respectively. The EPS estimates for 2025 have been trending higher over the past 60 days. Image Source: Zacks Investment Research The consensus estimate for KGC's 2025 sales and EPS implies year-over-year growth of 15.3% and 63.2%, respectively. The EPS estimates for 2025 have been trending northward over the past 60 days. Image Source: Zacks Investment Research (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.) Both Newmont and Kinross are well-positioned to benefit from the favorable gold price environment, each demonstrating strong financial performance and commitment to shareholder returns. Both have a strong pipeline of development projects, solid financial health and are seeing favorable estimate revisions. Newmont appears to have an edge over Kinross due to its more attractive valuation and higher dividend yield. Investors seeking exposure to the gold space might consider Newmont as the more favorable option at this currently sports a Zacks Rank #1 (Strong Buy), whereas KGC has a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Newmont Corporation (NEM) : Free Stock Analysis Report Kinross Gold Corporation (KGC) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Forbes
2 days ago
- Business
- Forbes
What's Behind Newmont Mining's 44% Surge?
CANADA - 2025/03/23: In this photo illustration, the Newmont Mining Corporation logo is seen ... More displayed on a smartphone screen. (Photo Illustration by Thomas Fuller/SOPA Images/LightRocket via Getty Images) Newmont (NYSE:NEM)'s stock has experienced quite a bit of volatility this year. It began the year on a weak note, primarily impacted by declining gold prices and concerns regarding costs and production delays. However, things started to improve as gold prices surged—thanks to global uncertainty and increased purchases by central banks. Thus far in 2025, NEM has made a solid recovery, regaining a significant portion of its previous losses. Although it isn't breaking records, it's now in a more favorable position than it was at the beginning of the year, with a year-to-date gain of 44%. The movement in Newmont's stock price aligns with that of its peers, which include Wheaton Precious Metals (NYSE:WPM) that has risen 58% and Barrick Gold (NYSE: B) that has increased by 20% in the same timeframe. Newmont Corporation's stock has seen a recent increase due to a variety of factors. Gold prices have surged nearly 30% year-to-date, recently exceeding $3,500 per ounce. This surge is driven by global economic uncertainties, such as a U.S. trade conflict with China and political tensions surrounding Federal Reserve policy. As a major gold producer, Newmont directly benefits from higher gold prices, which enhance its revenues and profitability. Buy or Sell NEM. In 2023, Newmont finalized the acquisition of Newcrest Mining, developing an industry-leading portfolio with a long-term gold and copper production profile. The integration of Newcrest is anticipated to provide significant value to shareholders, with estimated pre-tax benefits of $500 million annually by the end of 2025. Furthermore, Newmont has been selling non-core assets, generating substantial proceeds to bolster its primary operations and financial standing. Additionally, for investors seeking potential returns with reduced volatility, the High Quality portfolio has comfortably outperformed the S&P 500, providing over 91% returns since its inception. Part of the increase observed in the last five months can be attributed to strong performance in the first quarter of 2025, propelled by soaring gold prices and strategic asset management. Revenue reached $5.01 billion, exceeding expectations by nearly $440 million. Adjusted EPS was recorded at $1.25, surpassing the consensus estimate of $0.71. Although Newmont has experienced significant revenue growth since 2021, its price-to-sales (PS) multiple has declined, dropping from 3.6x in 2021 to 2.2x in 2024. While the current PS is now 3.2x, there is potential for upside when comparing the current PS to historic levels: 3.6x at the close of 2020 and 2021. In Q1 2025, Newmont reported impressive financial results, driven by record-setting gold prices and effective portfolio optimization. The company announced adjusted EPS of $1.25, significantly exceeding analyst expectations, and revenue of $5.01 billion, which was supported by an average realized gold price of $2,944 per ounce. While gold production declined by 8% year-over-year to 1.5 million ounces, primarily due to divestitures of non-core assets, the company still achieved strong profitability, reporting $2.6 billion in adjusted EBITDA and $1.2 billion in free cash flow. Newmont successfully executed key divestitures—such as the Éléonore and Akyem mines—raising over $2.5 billion in proceeds and reducing its long-term debt by $1 billion. Additionally, it returned $1 billion to shareholders through dividends and buybacks. This strong performance reaffirmed confidence in Newmont's guidance for 2025 and supported the stock's recent upward trend. We currently estimate Newmont's valuation to be approximately $60 per share, about 8% above the current market price. Focusing on valuation in addition to growth is just one of the several strategies we utilize when constructing Trefis High Quality (HQ) Portfolio which, comprising a selection of 30 stocks, has shown a history of consistently outperforming the S&P 500 over the previous 4-year period. Why is that? As a group, HQ Portfolio stocks delivered superior returns with lower risk compared to the benchmark index; providing a smoother ride, as indicated in the HQ Portfolio performance metrics.
Politico
3 days ago
- Business
- Politico
All noisy on the Western solar panel front
Presented by the Stop the Oil Shakedown Coalition. With help from Alex Nieves and Timothy Cama SOLAR WARS: There's enough heat behind California's long-simmering rooftop solar fight that it's boiling over on two fronts this week. On Wednesday, the California Supreme Court will hear arguments from both sides on whether regulators broke the law when they slashed rooftop solar credits for new customers in 2022. At the same time, assemblymembers have a Friday deadline to pass (or not) a controversial legislative proposal to reduce the payments for legacy rooftop solar customers. The multipronged fight shows just how entrenched the two camps are — with rooftop solar advocates allying with builders and real estate agents on one side and utilities with labor unions and ratepayer advocates on the other — and just how willing they are to take their arguments to as many venues as possible. It's a fight that's likely to continue, given that the Supreme Court appears poised to rule narrowly — and perhaps not even on the policy debate itself. Instead, the Supreme Court's clerk and executive officer, Jorge Navarrete, asked lawyers last month to focus on how much the judicial branch should give deference to the California Public Utilities Commission when reviewing its various decisions. A lower court had previously cited deference to the CPUC — one of the rare state agencies created by the California Constitution itself — to reject a lawsuit by environmental groups that sought to restore the rooftop solar subsidies. For the environmental groups, the focus on deference is now an opportunity to take their fight to the agency itself, which some see as too cozy with the investor-owned utilities it regulates. 'Already, there's a gap in checks and balances on the commission,' said Roger Lin, an attorney with the Center for Biological Diversity, which is bringing the lawsuit against the CPUC. 'The implications of this case stretch beyond rooftop solar.' The investor-owned utilities, who otherwise argued in support of the CPUC's decision, declined to weigh in on how much the court should defer to the agency in a filing earlier this year. But Attorney General Rob Bonta's office is defending the agency, arguing in a brief that the CPUC deserves deference because of precedent, because of the agency's expertise and because the Legislature has 'repeatedly tasked the Commission with studying the effects of the NEM tariff and revising it as appropriate.' It's timely, then, to point out that the Legislature is currently considering doing part of the commission's work itself. Assemblymember Lisa Calderon's AB 942 would slash the payments to longstanding rooftop solar customers who got spared by the CPUC's 2022 decision to reduce payments solely for new customers. Calderon agreed this week to exempt farms and schools, which is eliminating opposition from farming groups close to some moderate Democrats. She also picked up support from the CPUC's Public Advocates Office, which said the measure could reduce costs for ratepayers without rooftop solar. But it'll come down to the wire: Some progressive Democrats have already peeled off from the bill in committee votes, citing concerns from their constituents with rooftop solar that the bill would break existing contracts. The Supreme Court will start hearing arguments at 9 a.m. on Wednesday (and it will be livestreamed if you want to follow along). AB 942 has until Friday to pass off the Assembly floor. — CvK Did someone forward you this newsletter? Sign up here! MUSK MANIA: Elon Musk has finally returned to his roots — and Democrats are loving it. Musk's departure from the White House, where he was once among Trump's top advisers, took an explosive turn Tuesday as the Tesla CEO ripped Republicans' budget megabill on X, calling it a 'disgusting abomination' that will raise the national debt. As we've noted, Musk's company never stopped stumping for California policies like the low-carbon fuel standard, even as Trump promised to unravel the state's regulations and Republicans blamed state officials for high gas prices. The eccentric billionaire was always expected to eventually butt heads with an administration poised to throttle the electric vehicle transition and eliminate clean energy incentives his company has profited greatly from. While the episode shocked Republicans and drew pushback from House Speaker Mike Johnson, Democrats could barely hide their excitement, Timothy Cama reports for POLITICO's E&E News. 'I haven't spoke to Elon Musk, I'm not sure what the reasons are for this extraordinary statement, but we're in complete agreement,' House Minority Leader Hakeem Jeffries said. — AN WE HAVE A BEE PROBLEM: California lawmakers are coming to the rescue of one of nature's most important insects: honeybees. The Assembly unanimously approved Assemblymember Rhodesia Ransom's bill today to launch a program within the California Department of Food and Agriculture to monitor the health of honeybee populations. AB 1042 would allow the department, when extra funding is available, to provide incentives and grants for health intervention projects to support the state's managed honeybee population. The critical species is responsible for pollinating crops like fruits and tree nuts that underpin the state's agriculture sector and maintaining natural ecosystems, but are dying in large numbers due to climate change, habitat loss, pesticides and other factors. Commercial beekeepers reported an average loss of 62 percent of their bee colonies between June 2024 and February of this year, according to a national survey by Project Apis m. (honeybees' Latin name). — AN RECYCLE THE REDO: Gov. Gavin Newsom told CalRecycle to redo its plastic waste reduction rules in the name of affordability. Now, the lawmakers that passed the law behind the rules say the redo goes against their intent — and that they were the ones who wanted to make recycling affordable to begin with. Twenty-two lawmakers joined Sen. Ben Allen, the author of 2022's SB 54, in a letter to Newsom, CalEPA Secretary Yana Garcia and CalRecycle Director Zoe Heller last week. Their goal all along, they write, was to lower costs to cities and ratepayers by making manufacturers responsible for recycling their products. The new rules, they argue, stray from their intent by exempting too much food and medication packaging and not preventing hazardous recycling technologies. A coalition of environmental groups including Oceana and Californians Against Waste also blasted the new rules Monday. 'Getting this right is about more than checking a legislative box,' the letter reads. 'California has an opportunity to lead in the global effort to tackle plastic pollution, but not if vague, watered-down language subverts that very goal.' Who is happy: the California Chamber of Commerce, which is arguing that the new rules are more achievable. Spokesperson John Myers shared a takeaway: 'By fostering a regulatory environment that balances ecological responsibility with economic viability, the state sets a precedent for sustainable innovation of a circular economy.' — CvK TWO STRIKES: It's been a bad week for Sable Offshore Corp.'s oil drilling ambitions. Santa Barbara Superior Court Judge Donna Geck issued an order Tuesday blocking a waiver granted by the state fire marshal that would allow the Texas-based oil company to restart a crude pipeline off Santa Barbara. That decision comes just days after a different Santa Barbara judge sided with the California Coastal Commission and stopped repairs on the 124-mile pipeline that leaked over 100,000 gallons in 2015. Linda Krop, chief counsel for the Environmental Defense Center, which sued the fire marshal and Sable, cheered the rulings and used the moment to call out Newsom, who has stayed relatively quiet on the issue. 'At the very least, Governor Newsom should demand that his agencies follow the law and do everything possible to prevent another ecological and economic disaster in our state,' she said. — AN — Former Gov. Arnold Schwarzenegger has a message for climate activists worried about the White House: roll up your sleeves and "stop whining.' — Southern California is being hit with a triple whammy of thunderstorms, dry lightning and rip tides. — Underground water supplies in the Colorado River basin are depleting even faster than the river itself, according to a new study based on NASA satellite data.
Yahoo
3 days ago
- Business
- Yahoo
DOW Agrees to Divest 50% Ownership in DowAksa Joint Venture
Dow Inc. DOW signed an agreement to sell its 50% interest in DowAksa Advanced Composites Holdings BV (DowAksa) to the other 50% joint venture partner, Aksa Akrilik Kimya Sanayii A.S. The sale proceeds are estimated to be $125 million, which will be used to support DOW's balanced capital allocation approach. This reflects an enterprise value of around 10x the estimated 2025 operating EBITDA. The sale of the stake in the joint venture created in 2012 is expected to close in the third quarter of 2025. DOW's decision to exit is rooted in its best-owner mindset strategy of focusing on its core, high-value downstream businesses. DOW stock has lost 47.1% over the past year compared with the industry's 24.9% decline. Image Source: Zacks Investment Research Dow, on its first-quarter call, said that it remains committed to disciplined execution and increased actions to boost profitability and support cash flow. It continues to take actions to address heightened macroeconomic and geopolitical uncertainties. Dow has delayed the construction of the Fort Saskatchewan Path2Zero project amid the prevailing market conditions. Also, it is expanding the earlier announced review of European assets, mainly in polyurethanes, to address the challenging demand conditions and regulatory environment in the region. These new and earlier announced actions are expected to deliver roughly $6 billion in cash support. DOW currently carries a Zacks Rank #4 (Sell). Some better-ranked stocks in the Basic Materials space are Akzo Nobel N.V. AKZOY, Newmont Corporation NEM and Balchem Corporation BCPC. While AKZOY and NEM currently sport a Zacks Rank #1 (Strong Buy) each, BCPC carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here. The Zacks Consensus Estimate for Akzo Nobel's current-year earnings is pegged at $1.64 per share, implying a 17.14% year-over-year increase. Its earnings beat the Zacks Consensus Estimate in three of the trailing four quarters while missing once. The Zacks Consensus Estimate for NEM's current-year earnings is pegged at $3.92 per share, indicating a 12.64% year-over-year earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed once, with an average surprise of 32.41%. NEM's shares have gained 40.1% in the past year. The Zacks Consensus Estimate for BCPC's 2025 earnings is pegged at $5.15 per share, indicating a rise of 31% from year-ago levels. The company's earnings beat the consensus estimate in two of the trailing four quarters while missing the rest. Its shares have gained 8.8% in the past year. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Dow Inc. (DOW) : Free Stock Analysis Report Newmont Corporation (NEM) : Free Stock Analysis Report Akzo Nobel NV (AKZOY) : Free Stock Analysis Report Balchem Corporation (BCPC) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
