Join        Login             Stock Quote

Earnings Preview: Newmont Mining (NYSE: NEM) - Fred Dunsel (02/23/12)

 February 23, 2012 04:44 PM

Newmont Mining Corporation (NYSE:NEM) will be announcing its fourth quarter and FY2011 results before the market opens on Friday (24 February). Last Friday, the company's stock closed at $59.45, marking a 0.3% drop for the week. With a market cap valuation of about $30 billion, the stock peaked at $72.42 last November. However, since the start of the year, the stock has fallen by about 1.5%.

Newmont is one of the world's largest gold producers with operations in Australia, Canada, Indonesia, Mexico, Peru and the United States. It has a well-diversified base, with 22% in the US, 50% from Asia/Pacific, 19% from Peru and 7% from Ghana. The company also completed a large acquisition last year, with a $2.3 billion purchase of Fronteer Gold. The latter had significant mining assets in Turkey, Peru and the US, including many projects close to existing Newmont infrastructure in Nevada.

[Related -What Gold Miners Are Thinking Today]

While gold prices might have been volatile in recent months, Newmont is generally seen as a strong company with good management that has managed to maintain low operating costs and good growth prospects from recent acquisitions. The company also recently announced that it expected to invest about $3.0 – 3.3 billion in attributable capital expenditures, of which approximately 60% is allocated to growth project initiatives, including further development of the Akyem project in Ghana and potentially the Conga project in Peru, with the remaining 40% expected to be spent on sustaining and maintenance capital.

[Related -One Thing Needs To Happen Before Precious Metals Start To Rally Again]

Given the above, both analysts and investors are sanguine about the company's growth prospects.
The current analyst consensus sees earnings of $1.27 per share and $4.62 per share for FY2011. This would make it a 20% year-on-year improvement. The company's profitability will be largely determined by gold prices that should be supportive through this year. With general optimism over gold prices, analysts expect Newmont to continue to post solid growth this year.

iOnTheMarket Premium


Comments Closed

rss feed

Latest Stories

article imageDefensive Sectors Lead Hesitant Market, But Traders Honor Long-standing Bullish Support

Last week, the major indexes fell back below round-number thresholds that had taken a lot of effort to read on...

article imageWill Janet Yellen's Outlook Prevail?

Federal Reserve Chairwoman Janet Yellen told the crowd last week that rate hikes are coming. The rise will read on...

article image3 Deep Value Stocks That Could Mount A Turnaround

Although the market action was a bit choppy in the first quarter of 2015, one fact is inescapable: the read on...

article imageFrenzied Speculative Activity In China's Equity Markets

It's time to take another look at the recent developments in China's equity markets as major indices hover read on...

Popular Articles

Daily Sector Scan
Partner Center

Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.