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 CORP. $31 (New York symbol NEM; Aggressive Growth Portfolio, Resources sector; Shares outstanding: 497.7 million; Market cap: $15.4 billion; Price-to-sales ratio: 1.8; Dividend yield: 3.2%; TSINetwork Rating: Average; www.newmont.com) has written down the value of its gold inventories, as well as two of its gold mines in Australia, by $1.8 billion....
NEWMONT MINING CORP. $31 (New York symbol NEM; Aggressive Growth Portfolio, Resources sector; Shares outstanding: 497.7 million; Market cap: $15.4 billion; Price-to-sales ratio: 1.8; Dividend yield: 3.2%; TSINetwork Rating: Average; www.newmont.com) has written down the value of its gold inventories, as well as two of its gold mines in Australia, by $1.8 billion. That’s because gold prices have dropped 21%, from around $1,800 an ounce in October 2012 to $1,420 today.
The company links its dividend to gold prices, so it has also cut the quarterly payout by 28.6%, to $0.25 a share from $0.35. The new annual rate of $1.00 yields 3.2%.
Newmont is still a hold.
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The company links its dividend to gold prices, so it has also cut the quarterly payout by 28.6%, to $0.25 a share from $0.35. The new annual rate of $1.00 yields 3.2%.
Newmont is still a hold.
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NEWMONT MINING $29.02 (New York symbol NEM; Shares outstanding: 492.3 million; Market cap: $14.5 billion; TSINetwork Rating: Average; Dividend yield: 4.8%; www.newmont.com) gets 90% of its revenue from gold mines in the U.S., Australia and Peru. Copper, zinc and other metals supply the remaining 10%.
Gold is down 33%, from $1,800 an ounce in September 2012 to $1,204 today. That’s partly because the U.S. Federal Reserve has indicated that it will soon scale back its bond-purchasing program, known as quantitative easing. Slowing growth in the money supply will reduce the likelihood of a sharp increase in inflation. Many investors buy gold as a hedge against inflation.
In response, Newmont is cutting jobs and postponing building new mines. The company also links its dividend to the price of gold, so it has lowered its quarterly payout by 17.6%, to $0.35 a share from $0.425, for a 4.8% yield. Further dividend cuts seem likely, particularly if gold prices continue to fall.
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Gold is down 33%, from $1,800 an ounce in September 2012 to $1,204 today. That’s partly because the U.S. Federal Reserve has indicated that it will soon scale back its bond-purchasing program, known as quantitative easing. Slowing growth in the money supply will reduce the likelihood of a sharp increase in inflation. Many investors buy gold as a hedge against inflation.
In response, Newmont is cutting jobs and postponing building new mines. The company also links its dividend to the price of gold, so it has lowered its quarterly payout by 17.6%, to $0.35 a share from $0.425, for a 4.8% yield. Further dividend cuts seem likely, particularly if gold prices continue to fall.
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ALCOA INC., $8.10, New York symbol AA, is closing smelters and cutting costs in response to declining aluminum prices. It also continues to expand its more profitable engineered-products business, which makes wings, fasteners and other components for the aerospace and automotive industries. In the three months ended June 30, 2013, Alcoa lost $119 million, or $0.11 a share. That’s much worse than the $2 million, or nil per share, it lost a year earlier. If you exclude plant-closure costs and other unusual items, Alcoa’s earnings per share would have risen 16.7%, to $0.07 from $0.06. On that basis, the latest earnings beat the consensus estimate of $0.06 a share....
NEWMONT MINING $29.02 (New York symbol NEM; Shares outstanding: 492.3 million; Market cap: $14.5 billion; TSINetwork Rating: Average; Dividend yield: 4.8%; www.newmont.com) gets 90% of its revenue from gold mines in the U.S., Australia and Peru. Copper, zinc and other metals supply the remaining 10%.
Gold is down 33%, from $1,800 an ounce in September 2012 to $1,204 today....
Gold is down 33%, from $1,800 an ounce in September 2012 to $1,204 today....
CONAGRA FOODS INC., $34.93, New York symbol CAG, rose 5% this week after it reported better-than-expected earnings. In its 2013 fiscal year, which ended May 26, 2013, ConAgra earned $773.9 million, or $1.85 a share. That’s up 65.4% from $467.9 million, or $1.12 a share, in 2012. These gains are mainly due to Ralcorp Holdings, the largest maker of private label food in the U.S., which ConAgra recently bought for $4.75 billion. If you disregard costs to integrate this purchase and other unusual items, ConAgra’s earnings would have risen 17.4%, to $2.16 a share from $1.84. On that basis, the latest earnings beat the consensus estimate of $2.15 a share....
ISHARES S&P/TSX GLOBAL GOLD INDEX FUND $12.91 (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 54 gold stocks from Canada and around the world. The fund’s MER is 0.60%. iShares S&P/TSX Global Gold Index Fund began trading on March 23, 2001.
The fund’s top 10 holdings are Goldcorp at 13.1%; Barrick Gold, 13.8%; Newmont Mining, 11.3%; Yamana Gold, 5.8%; Kinross, 4.9%; Randgold Resources (ADR), 4.8%; AngloGold Ashanti (ADR), 4.6%; Franco Nevada, 4.1%, Eldorado Gold, 3.8%; and Agnico-Eagle Mines, 3.7%.
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This index is made up of 54 gold stocks from Canada and around the world. The fund’s MER is 0.60%. iShares S&P/TSX Global Gold Index Fund began trading on March 23, 2001.
The fund’s top 10 holdings are Goldcorp at 13.1%; Barrick Gold, 13.8%; Newmont Mining, 11.3%; Yamana Gold, 5.8%; Kinross, 4.9%; Randgold Resources (ADR), 4.8%; AngloGold Ashanti (ADR), 4.6%; Franco Nevada, 4.1%, Eldorado Gold, 3.8%; and Agnico-Eagle Mines, 3.7%.
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Most precious metals stocks have moved down lately, along with gold and silver prices. Gold is down from almost $1,800 U.S. an ounce in September 2012 to $1,403 today. Silver has dropped from $34.96 U.S. an ounce to $22.55.
Gold and silver could well regain their highs and move up even further over the longer term, although they will likely remain volatile....
Gold and silver could well regain their highs and move up even further over the longer term, although they will likely remain volatile....
NEWMONT MINING $32.59 (New York symbol NEM; Shares outstanding: 491.8 million; Market cap: $16.0 billion; TSINetwork Rating: Average; Dividend yield: 4.3%; www.newmont.com) gets 90% of its revenue from gold mines in the U.S., Australia and Peru. Copper, zinc and other metals supply the remaining 10%.
Newmont produced 1.2 million ounces of gold in the first quarter of 2013, down 10.9% from a year earlier....
Newmont produced 1.2 million ounces of gold in the first quarter of 2013, down 10.9% from a year earlier....
NEWMONT MINING CORP. $34 (New York symbol NEM; Aggressive Growth Portfolio, Resources sector; Shares outstanding: 496.8 million; Market cap: $16.9 billion; Price-to-sales ratio: 1.6; Dividend yield: 5.0%; TSINetwork Rating: Average; www.newmont.com) produced 1.2 million ounces of gold in the first quarter of 2013, down 10.9% from a year earlier....