NEWMONT MINING $37.69

NEWMONT MINING $37.69 (New York symbol NEM; Shares outstanding: 530.5 million; Market cap: $20.0 billion; TSINetwork Rating: Average; Dividend yield: 0.3%; www.newmont.com) is one of the world’s largest gold and copper producers, with major mines in the U.S., Peru, Suriname, Australia, Ghana and Indonesia.

The company’s gold production in the first quarter of 2016 rose 3.6%, to 1.23 million ounces from 1.19 million a year earlier. Cash flow per share fell 12.1%, to $1.24 from $1.41, but that was mostly due to higher taxes.

Newmont’s balance sheet remains strong. As of March 31, 2016, it held cash of $2.5 billion, or $4.69 a share. Its long-term debt of $5.4 billion is a moderate 27% of its market cap.

The company’s expansion projects will increase its gold production for 2016 to as much as 5.45 million ounces. Output could rise to as high as 5.7 million ounces in 2017.

The stock has moved up along with gold prices. It now trades at 30.9 times the $1.22 a share that Newmont will likely earn in 2016.

Newmont is a buy, but only for investors who want to own a gold stock.

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