Hold off on Newmont

Article Excerpt

NEWMONT MINING $26.26 (New York symbol NEM; Shares outstanding: 529.1 million; Market cap: $13.4 billion; TSINetwork Rating: Average; Dividend yield: 0.4%; 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. Newmont’s shares have gained 41% since the start of 2016. That’s mainly because the recent volatility in global stock markets has pushed up gold prices during the same period by 17% to $1,242 an ounce. Rising gold prices will also improve the profitability of Newmont’s Cripple Creek & Victor gold mine in Nevada. The company acquired the operation in August 2015. Newmont expects its overall operating costs will fall as it opens new mines in the next few years. However, the stock is expensive at 42.3 times the $0.62 a share that Newmont will probably earn in 2016. Newmont remains a hold. hold. …