#2 - Newmont Corporation (NEM) (NYSE:NEM)
Year-to-Date Gain: 52%
Newmont Corporation (NYSE: NEM) is another mining company that recently reported earnings. On July 30, Newmont Corporation posted earnings per share of 32 cents on revenue of $2.4 billion. Both numbers were closely in line with analysts’ expectations. So does that mean the stock’s run is over?
I’m going to say no. The stock was up 43% for the year in May and has only continued to climb. In fact the stock is now up over 77% in the last 12 months. Yes, it’s getting more expensive for Newmont or any gold miner to extract the precious metal, but that shouldn’t steer you away from NEM stock.
In the company’s first-quarter earnings report it cited its ability to continue to operate throughout the Covid-19 pandemic. As proof of that, the company announced it had produced 1.26 million attributable ounces of gold.
But what investors will really like is the company’s free cash flow which came in at $388 million. This compares to a negative $79 million in FCF the company had reported just a year earlier. And investors will enjoy Newmont’s dividend which it just increased by 11 cents to 25 cents per quarter.
About Newmont
Newmont Corporation engages in the production and exploration of gold. It also explores for copper, silver, zinc, and lead. The company has operations and/or assets in the United States, Canada, Mexico, Dominican Republic, Peru, Suriname, Argentina, Chile, Australia, Papua New Guinea, Ecuador, Fiji, and Ghana.
Read More - Current Price
- $38.28
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 9 Buy Ratings, 7 Hold Ratings, 1 Sell Ratings.
- Consensus Price Target
- $54.31 (41.9% Upside)
