Newmont Corp.
New York symbol NEM, is one of the largest gold producers in the world with major operations in the United States, Canada, Peru, Australia, Indonesia and Ghana.
NEWMONT MINING $21.71 (New York symbol NEM; Shares outstanding: 498.9 million; Market cap: $11.0 billion; TSINetwork Rating: Average; Dividend yield: 0.5%; www.newmont.com) is the world’s second-biggest gold producer after Barrick Gold (symbol ABX on Toronto).
Newmont has mines in North America, South America, Australia, New Zealand, Indonesia and Africa.
The company’s cash flow per share fell 5.0% in 2014, to $3.45 from $3.63 in 2013. Aggressive cost-cutting failed to offset a 10% decline in realized gold prices.
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Newmont has mines in North America, South America, Australia, New Zealand, Indonesia and Africa.
The company’s cash flow per share fell 5.0% in 2014, to $3.45 from $3.63 in 2013. Aggressive cost-cutting failed to offset a 10% decline in realized gold prices.
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NEWMONT MINING CORP. $23 (New York symbol NEM; Aggressive Growth Portfolio, Resources sector; Shares outstanding: 498.9 million; Market cap: $11.5 billion; Price-to-sales ratio: 1.6; Dividend yield: 0.4%; TSINetwork Rating: Average; www.newmont.com) will soon begin work on the first phase of its Long Canyon gold mine in Nevada.
Long Canyon will produce 100,000 to 150,000 ounces a year when it opens in 2017. The midpoint of that range— 125,000 ounces— is equal to 2.6% of the 4.85 million ounces Newmont produced in 2014. The mine should last eight years.
The company will spend $250 million to $300 million on this project. Based on current gold prices, the mine should add $100 million a year to Newmont’s annual operating earnings.
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Long Canyon will produce 100,000 to 150,000 ounces a year when it opens in 2017. The midpoint of that range— 125,000 ounces— is equal to 2.6% of the 4.85 million ounces Newmont produced in 2014. The mine should last eight years.
The company will spend $250 million to $300 million on this project. Based on current gold prices, the mine should add $100 million a year to Newmont’s annual operating earnings.
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NEWMONT MINING $21.71 (New York symbol NEM; Shares outstanding: 498.9 million; Market cap: $11.0 billion; TSINetwork Rating: Average; Dividend yield: 0.5%; www.newmont.com) is the world’s second-biggest gold producer after Barrick Gold (symbol ABX on Toronto). Newmont has mines in North America, South America, Australia, New Zealand, Indonesia and Africa. The company’s cash flow per share fell 5.0% in 2014, to $3.45 from $3.63 in 2013. Aggressive cost-cutting failed to offset a 10% decline in realized gold prices....
ISHARES S&P/TSX GLOBAL GOLD INDEX FUND $10.63 (Toronto symbol XGD; buy or sell through brokers; ca.ishares.com) aims to mirror the performance of the S&P/TSX Global Gold Index.
This index is made up of 38 gold stocks from Canada and around the world. The iShares S&P/TSX Global Gold Index Fund’s MER is 0.61%. It began trading on March 23, 2001.
The fund’s top holdings are Goldcorp at 15.8%; Barrick Gold, 13.3%; Newmont Mining, 11.6%; Franco Nevada, 7.2%; Randgold Resources (ADR), 6.3%; Agnico-Eagle Mines, 5.9%; Royal Gold, 4.1%; AngloGold Ashanti (ADR), 4.1%; Eldorado Gold, 3.4%; and Yamana Gold, 3.1%.
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This index is made up of 38 gold stocks from Canada and around the world. The iShares S&P/TSX Global Gold Index Fund’s MER is 0.61%. It began trading on March 23, 2001.
The fund’s top holdings are Goldcorp at 15.8%; Barrick Gold, 13.3%; Newmont Mining, 11.6%; Franco Nevada, 7.2%; Randgold Resources (ADR), 6.3%; Agnico-Eagle Mines, 5.9%; Royal Gold, 4.1%; AngloGold Ashanti (ADR), 4.1%; Eldorado Gold, 3.4%; and Yamana Gold, 3.1%.
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In 2011, gold shot up to a high of $1,950 U.S. an ounce, and silver reached a high of $48.48. Gold prices then fell steadily and in late 2014 dropped below $1,200 for the first time since mid-2010. The metal now trades at $1,203. Silver also fell, hitting a five-year low of $15.35 an ounce in late 2014. It now trades at $16.21. In the longer term, gold and silver could well regain their 2011 highs. This will simply reflect the vast expansion in the U.S. money supply that has taken place since the financial crisis struck in 2008....
On occasion, an Inner Circle member asks a question that is likely to interest many other members. Here’s the latest example: Q: Hello, Pat: I am a relatively new member, and this is my first time writing to ask a question. I have heard about a movement to divest from the fossil fuel industry in which some major institutional funds have begun to participate (Stanford’s endowment being one). Now I know that you recommend a number of oil stocks, and I am not writing to delve further into that matter. Rather, I would like to know: is it possible to have a strong resource segment in one’s portfolio while divesting away from companies directly related to the fossil fuel industry? What companies would you suggest investing in?...
NEWMONT MINING CORP. $24 (New York symbol NEM; Aggressive Growth Portfolio, Resources sector; Shares outstanding: 498.8 million; Market cap: $11.9 billion; Price-to-sales ratio: 1.7; Dividend yield: 0.4%; TSINetwork Rating: Average; www.newmont.com) has started work on its 75%-owned Merian gold project in Suriname; the Suriname government owns the remaining 25%. The company will spend $600 million to $700 million on Merian. The new mine will supply 7% to 10% of Newmont’s total gold production when it starts up in 2017. The stock has jumped 36% from its December 2014 low of $17.60. That’s mainly because gold prices have strengthened in response to fears of deflation in Europe. However, the higher U.S. dollar will continue to weigh on gold....
NEWMONT MINING CORP. $24 (New York symbol NEM; Aggressive Growth Portfolio, Resources sector; Shares outstanding: 498.8 million; Market cap: $11.9 billion; Price-to-sales ratio: 1.7; Dividend yield: 0.4%; TSINetwork Rating: Average; www.newmont.com) has started work on its 75%-owned Merian gold project in Suriname; the Suriname government owns the remaining 25%.
The company will spend $600 million to $700 million on Merian. The new mine will supply 7% to 10% of Newmont’s total gold production when it starts up in 2017.
The stock has jumped 36% from its December 2014 low of $17.60. That’s mainly because gold prices have strengthened in response to fears of deflation in Europe. However, the higher U.S. dollar will continue to weigh on gold.
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The company will spend $600 million to $700 million on Merian. The new mine will supply 7% to 10% of Newmont’s total gold production when it starts up in 2017.
The stock has jumped 36% from its December 2014 low of $17.60. That’s mainly because gold prices have strengthened in response to fears of deflation in Europe. However, the higher U.S. dollar will continue to weigh on gold.
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ISHARES S&P/TSX GLOBAL GOLD INDEX FUND $8.06 (Toronto symbol XGD; buy or sell through brokers; ca.ishares.com) aims to mirror the performance of the S&P/TSX Global Gold Index.
This index is made up of 40 gold stocks from Canada and around the world. The iShares S&P/TSX Global Gold Index Fund’s MER is 0.61%. It began trading on March 23, 2001.
The fund’s top holdings are Goldcorp at 16.2%; Barrick Gold, 14.7%; Newmont Mining, 9.9%; Franco Nevada, 7.8%; Randgold Resources (ADR), 5.7%; Agnico-Eagle Mines, 5.3%; Eldorado Gold, 4.2%; Royal Gold, 4.0%; Yamana Gold, 3.7%; and AngloGold Ashanti (ADR), 3.5%.
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This index is made up of 40 gold stocks from Canada and around the world. The iShares S&P/TSX Global Gold Index Fund’s MER is 0.61%. It began trading on March 23, 2001.
The fund’s top holdings are Goldcorp at 16.2%; Barrick Gold, 14.7%; Newmont Mining, 9.9%; Franco Nevada, 7.8%; Randgold Resources (ADR), 5.7%; Agnico-Eagle Mines, 5.3%; Eldorado Gold, 4.2%; Royal Gold, 4.0%; Yamana Gold, 3.7%; and AngloGold Ashanti (ADR), 3.5%.
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Central Fund of Canada, $12.69, symbol CEF.A on Toronto (Shares outstanding: 254.4 million; Market cap: $3.7 billion; www.centralfund.com), is a closed-end mutual fund that holds gold and silver bullion. It now holds 57.4% of its assets in gold bullion, 41.9% in silver bullion and 0.7% in cash.
Central Fund trades at a 10.9% discount to the per-unit value of the assets it holds. It has a 0.32% MER, and the units yield 0.09%.
If you want to buy gold or silver, we recommend staying away from gold or silver bullion, coins (unless you collect them as a hobby) or certificates representing an interest in bullion. That’s because commodity investments like gold and silver bullion do not generate income. Instead, they come with a continuing cash drain for management, insurance, storage and so on. You either pay these costs directly or through a premium built into the price of, say, a futures contract.
That’s why we recommend that you invest in gold through gold- or silver-mining stocks. Unlike bullion, these stocks at least have the potential to generate income. However, Central Fund of Canada is a relatively low-cost and liquid way to hold physical gold and silver, and the 10.9% discount to its net asset value also adds appeal.
If you want to invest in gold and silver bullion, Central is okay to hold.
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Central Fund trades at a 10.9% discount to the per-unit value of the assets it holds. It has a 0.32% MER, and the units yield 0.09%.
If you want to buy gold or silver, we recommend staying away from gold or silver bullion, coins (unless you collect them as a hobby) or certificates representing an interest in bullion. That’s because commodity investments like gold and silver bullion do not generate income. Instead, they come with a continuing cash drain for management, insurance, storage and so on. You either pay these costs directly or through a premium built into the price of, say, a futures contract.
That’s why we recommend that you invest in gold through gold- or silver-mining stocks. Unlike bullion, these stocks at least have the potential to generate income. However, Central Fund of Canada is a relatively low-cost and liquid way to hold physical gold and silver, and the 10.9% discount to its net asset value also adds appeal.
If you want to invest in gold and silver bullion, Central is okay to hold.
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