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Yahoo
3 days 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
National Post
02-05-2025
- Business
- National Post
Newmont Promotes Natascha Viljoen to President and Chief Operating Officer
Article content DENVER — Newmont Corporation (NYSE: NEM, TSX: NGT, ASX: NEM, PNGX: NEM) ('Newmont') today announced that Natascha Viljoen, Executive Vice President and Chief Operating Officer, has been promoted to President and Chief Operating Officer of the company. Ms. Viljoen will continue to report directly to Chief Executive Officer Tom Palmer. Article content Article content 'This promotion is a recognition of Natascha's strong leadership as Chief Operating Officer since 2023, her commitment to safe operational delivery and deep connections with people both inside and outside the company,' said Palmer. 'Natascha's energy, passion and resolve will continue to be critical assets as we work to improve costs and productivity to deliver value to shareholders.' Article content Palmer added, 'This new leadership role for Natascha, which provides a balance of both strategic and operational focus, is right for the company at this time. Now that we have completed the rationalization of our portfolio following the Newcrest acquisition, we want to ensure that our leadership team is in the best position to support our people throughout the company to safely deliver on our commitments now and in the future. Natascha's new role is an important step in making that happen.' Article content Prior to joining Newmont, Natascha served as the Chief Executive Officer of Anglo American Platinum, the world's largest primary producer of platinum. Natascha is a metallurgical engineer and holds a Bachelor of Engineering from North West University in South Africa and an Executive MBA from the University of Cape Town, South Africa. Article content 'I am honored and excited to have this opportunity to serve as President and Chief Operating Officer of Newmont, a company whose values I share and whose people I respect,' said Viljoen. 'I am looking forward to leading our efforts in this new capacity, and to ensure that all of our stakeholders – our teams, host communities, partners, customers and shareholders – benefit from our world-class portfolio.' Article content About Newmont Article content Newmont is the world's leading gold company and a producer of copper, zinc, lead, and silver. The Company's world-class portfolio of assets, prospects and talent is anchored in favorable mining jurisdictions in Africa, Australia, Latin America & Caribbean, North America, and Papua New Guinea. Newmont is the only gold producer listed in the S&P 500 Index and is widely recognized for its principled environmental, social, and governance practices. Newmont is an industry leader in value creation, supported by robust safety standards, superior execution, and technical expertise. Founded in 1921, the Company has been publicly traded since 1925. Article content At Newmont, our purpose is to create value and improve lives through sustainable and responsible mining. To learn more about Newmont's sustainability strategy and initiatives, go to Article content This news release may contains 'forward-looking statements' within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are intended to be covered by the safe harbor created by such sections and other applicable laws. Where a forward-looking statement expresses or implies an expectation or belief as to future events or results, such expectation or belief is expressed in good faith and believed to have a reasonable basis. However, such statements are subject to risks, uncertainties and other factors, which could cause actual results to differ materially from future results expressed, projected or implied by the forward-looking statements. Forward-looking statements in this news release include, without limitation, expectation regarding cost and productivity improvements and other statements regarding future events or results. For a discussion of risks and other factors that might impact future looking statements , see the Company's Annual Report on Form 10-K for the year ended December 31, 2024 filed with the U.S. Securities and Exchange Commission on February 21, 2025, under the heading Risk Factors. Article content Article content Article content Article content Article content Contacts Article content Media Contact – Global Shannon Brushe globalcommunications@ Article content Article content Article content
Yahoo
22-02-2025
- Business
- Yahoo
Newmont beats fourth-quarter profit estimate on higher gold production, prices
(Reuters) -Newmont beat analysts' estimate for fourth-quarter profit on Thursday, as the world's biggest gold miner benefited from a rally in bullion prices and higher production. Average price of gold has been rising over the past few quarters and hit multiple all-time highs during the October to December period, as uncertainties surrounding the U.S. presidential election and the Middle East tensions fueled demand for the safe-haven asset. Newmont's quarterly gold production increased 9.2% over the year earlier to 1.90 million ounces, while price was up 31.9% at $2,643 per ounce. All-in-sustaining-costs for gold, an industry metric reflecting total expenses, were down 1.5% at $1,463 per ounce, also aiding the company's earnings. Newmont now expects gold production of about 5.9 million ounces in the current year, above Wall Street estimate of 5.87 million ounces. After buying Australia-based Newcrest for $17.14 billion, Newmont announced in February 2024 that it would divest non-core assets and trim its workforce to cut debt, which was at $5.31 billion as of December 31. Late last year, the company said it would sell its Eleonore mine in Canada to UK-based miner Dhilmar Ltd for $795 million and sell its Musselwhite Gold Mine in Ontario to Orla Mining in a deal valued at $850 million. Last month, Gold miner Discovery Silver said it would acquire Newmont's stake in Porcupine Operations in Ontario, Canada, for $425 million. On an adjusted basis, Newmont earned $1.40 per share for the quarter ended December 31, compared with analysts' average estimate of $1.08 per share, according to data compiled by LSEG.
