Newmont Delivers 2.1 Million Gold Equivalent Ounces

The world’s largest gold miner, Newmont Corp., stands at a compelling inflection point, combining robust gold market fundamentals with strategic diversification into copper and other metals. The firm reported adjusted net income of $0.81 per share in the latest quarter, demonstrating exceptional operational execution and financial strength.

The company’s growth trajectory appears well-supported by bullish precious metals markets and operational efficiency.

Despite a proven track record of shareholder returns through consistent dividends and strategic buybacks, coupled with significant upside potential, the stock trades at just 11.8 times the company’s forward earnings forecast.

NEWMONT CORP. (New York symbol NEM; www.newmont.com) remains a solid pick for long-term growth and as a hedge against inflation.

Newmont’s position as the world’s largest gold miner, with major mines in North America, South America, Australia, and Africa, offers a lot of investment appeal. In addition to gold, it also produces copper, silver, lead and zinc.

Newmont continues to make progress with its plan to sell six of its less important mines. After these sales, it will focus on its 10 top-tier mines in North America, South America, Australia, Papua New Guinea and Ghana (Africa).

Mining Stocks: Strategic divestments and buybacks should optimize Newmont’s portfolio

Under that plan, Newmont has agreed to sell its Cripple Creek & Victor mine in Colorado to SSR Mining Inc. (Toronto symbol SSRM). The company will receive $100 million when it completes the sale. It could also receive an additional $175 million in future cash payments.

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The company agreed to sell its Akyem gold mine in Ghana for $900 million. It could receive an additional $100 million in future cash payments.

Newmont also recently agreed to sell its Musselwhite gold mine in Ontario for $810 million. It could receive an additional $40 million in future cash payments. The company expects to complete the transaction in the first quarter of 2025.

So far, Newmont has agreed to sell $3.9 billion worth of assets. To put that in context, its market cap (the value of all outstanding shares) is $42.2 billion.

Those proceeds will help fund the company’s plan to buy back $3 billion worth of its shares through October 2026.

Meanwhile, Newmont will continue to operate its Ahafo mine in Ghana. In fact, it plans to invest up to $1.05 billion in this project in the next few years.

In the most recent quarter ending September 30, 2024, the company produced 2.1 million gold equivalent ounces. Excluding one-time items, the company reported earnings of $936 million, or $0.81 a share, in the latest quarter.

All in all, strong gold market fundamentals and company financials, an attractive valuation and upside potential plus a solid dividend make Newmont as solid pick for the long term.

Thanks to rising gold prices and production, Newmont’s earnings likely jumped over 90% in 2024 to $3.13 a share; the stock trades at a reasonable 11.8 times that forecast. The $1.00 dividend yields 2.7%.

Recommendation in Canadian Wealth Advisor: Newmont is a buy.

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Scott Clayton

Scott is an associate editor at TSI Network. He is the lead reporter and analyst for Dividend Advisor, Power Growth Investor and Canadian Wealth Advisor and a member of the Investment Planning Committee. Scott began his investment and financial career working with Pat McKeough at The Investment Reporter in the 1980s. Subsequently, he worked at the Financial Post Corporation Service for 10 years. He joined TSI Network in 1998. He is a Bachelor of Economics graduate of York University, and he also has an M.B.A. from the Schulich School of Business.

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