The world’s largest gold miner, Newmont Corporation (NYSE: NEM ) (TSX: NGT:CA ) has recently been under the spotlight for selling its Eleonore mine in Quebec for $795 million. NEM considers this move a part of its broader portfolio optimisation strategy, whichI am a financial writer with a degree in Finance. In my five-year career, I have worked with two financial companies. I keep a close eye on Energy, Banking, and Tech stocks. My main focus is fundamental analysis and looking at the long-term position of ...

Core Insights - Newmont Corporation has agreed to sell its Eleonore operation in Northern Quebec to Dhilmar Ltd for $795 million in cash, with the transaction expected to close in the first quarter of 2025 [1] - The divestment is part of Newmont's strategy to optimize its portfolio, having already exceeded its planned cash flow from such divestitures by over $1.5 billion [2] - Newmont's total gross proceeds from non-core asset divestitures and investment sales are projected to reach up to $3.6 billion upon closure of the transaction [1][2] Financial Performance - Newmont expects fourth-quarter 2024 attributable production of 1.8 million gold ounces, with costs applicable to sales estimated at $1,050 per ounce and all-in-sustaining costs at $1,475 per ounce [5] - Newmont's shares have increased by 4.1% over the past year, while the industry has seen a rise of 20.9% [4] Strategic Focus - In February 2024, Newmont announced plans to sell non-core assets, including six businesses and two projects across its Australian, Ghanaian, and North American operations [3] - The company is currently finalizing the sales processes for its remaining North American non-core assets, expected to be completed by the first quarter of 2025 [3]

Core Insights - Newmont Corporation (NEM) has agreed to sell its Musselwhite operation in Ontario, Canada, to Orla Mining Ltd for up to $850 million in total consideration [1] - The agreement includes $810 million in cash at closing and up to $40 million in contingent payments, with completion expected in the first quarter of 2025 [2] - Newmont aims to generate over $2 billion in gross proceeds from non-core divestitures, having already exceeded this goal with total gross proceeds expected to reach up to $2.9 billion this year [2][3] Financial Strategy - Newmont is utilizing free cash flow from operations and divestiture proceeds to enhance long-term shareholder value through a $3 billion share repurchase program approved until October 2026 [4] - The company has made significant progress towards its targeted debt level of $8 billion, retiring approximately $500 million in 2024 [5] Production and Cost Expectations - Newmont anticipates fourth-quarter 2024 attributable production of 1.8 million gold ounces, with costs applicable to sales projected at $1,050 per ounce and all-in sustaining costs at $1,475 per ounce [5] Market Performance - Newmont's shares have increased by 18% over the past year, compared to a 31.1% rise in the industry [5]

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Core Viewpoint - Newmont Corporation (NEM) has experienced a significant decline of 28% over the past four weeks, but it is now positioned for a potential trend reversal as it enters oversold territory, with analysts predicting better earnings than previously expected [1]. Group 1: Technical Analysis - The Relative Strength Index (RSI) for NEM is currently at 23.28, indicating that the heavy selling pressure may be exhausting, suggesting a possible rebound towards the previous equilibrium of supply and demand [5]. - The stock's price as of October 25, 2024, is $48.42, with a volume of 2826.96, and the RSI 14 is at 31.428, further supporting the potential for a price recovery [5]. Group 2: Fundamental Indicators - There is a strong consensus among sell-side analysts that earnings estimates for NEM have increased by 2.9% over the last 30 days, which typically correlates with price appreciation in the near term [5]. - NEM holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, indicating a favorable outlook for a turnaround [6].

Core Viewpoint - Kenorland Minerals Ltd. is advancing its exploration efforts at the Chebistuan Project in Quebec, with a winter 2025 drill program planned and Newmont Corporation entering Phase 2 of their earn-in agreement to potentially increase its interest in the project to 80% [2][3][8]. Drill Program Details - The winter 2025 drill program will involve up to 3,500 meters of drilling at the Deux Orignaux target area, following up on previous drilling results that included 157.20 meters at 0.41 g/t Au [4][6]. - The program aims to test the lateral and down-dip extents of mineralized syenite and additional targets identified through geophysical surveys [4][5]. Phase 2 Earn-In Agreement - Newmont is required to make a one-time cash payment of C$200,000 and incur additional qualifying expenditures to define a 1.5 million ounces gold resource through a pre-feasibility study within six years [7][11]. - Upon completion of the Phase 2 Earn-In, Newmont's interest will increase from 51% to 80%, while Kenorland's interest will decrease from 49% to 20% [8][11]. Project Background - The Chebistuan Project covers approximately 100 kilometers of a major deformation zone and is located near significant gold deposits, with historical production of over 6.5 million ounces of gold and 1.6 billion pounds of copper in nearby mining camps [9][10]. - The project was acquired by Kenorland through map staking in December 2019 and optioned to Newmont in July 2020, with systematic exploration efforts ongoing since then [9][11].

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Valuation and Technical Indicators - NEM is trading at a forward P/E of 11.89X, a 10.2% discount to the Zacks Mining - Gold industry average of 13.24X [1] - NEM has a Value Score of B [1] - NEM is trading at a 23% discount to its 52-week high of $58.72 [2] - NEM has been trading above the 200-day SMA since April 23, 2024, but is currently below the 50-day SMA [3] - The 50-day SMA remains higher than the 200-day SMA since the golden crossover on May 13, 2024, indicating a bullish trend [3] Growth Projects and Acquisitions - NEM is investing in growth projects including Tanami Expansion 2, Ahafo North expansion, and Cadia Panel Caves [5] - The acquisition of Newcrest Mining has created an industry-leading portfolio with a multi-decade gold and copper production profile [6] - NEM has achieved $500 million in annual run-rate synergies following the Newcrest buyout [6] Divestments and Capital Allocation - NEM is divesting non-core businesses, including the sale of Akyem operation for up to $1 billion and Telfer operation for up to $475 million [7] - Proceeds from divestments will support capital allocation priorities, including improving the balance sheet and returning capital to shareholders [7] - NEM is investing $950 million to $1,050 million in the Ahafo North gold mining project in Ghana [7] Financial Health and Shareholder Returns - NEM had liquidity of $7.1 billion at the end of Q3 2024, including $3 billion in cash and cash equivalents [8] - Operating cash flow increased 64% YoY to $1.6 billion in Q3 2024 [8] - NEM generated $760 million in free cash flow and returned $786 million to shareholders through dividends and share buybacks in Q3 2024 [8] - NEM offers a dividend yield of 2.2% with a payout ratio of 39% and a five-year annualized dividend growth rate of 6.8% [9] Gold Price Impact and Earnings Estimates - Gold prices have rallied 31% this year, driven by strong demand from central banks, a dovish Fed outlook, and global uncertainties [10] - NEM's earnings estimates for 2024 and 2025 have been revised upward, with 2024 earnings expected to grow 95.7% YoY [11] - NEM has a long-term EPS growth rate of 38.7% versus 23.4% for its industry [11] Price Performance and Investment Case - NEM's shares have gained 9.1% YTD, underperforming the industry's 26.9% increase and the S&P 500's 24.7% rise [13] - NEM presents an attractive investment case backed by growth projects, strong Tier 1 assets, solid financial health, and rising earnings estimates [15] - Rallying gold prices are expected to boost NEM's profitability and cash flow generation [15]

UKRAINE - 2021/03/31: In this photo illustration, the Newmont Corporation logo of a gold mining ... [+] company seen displayed on a smartphone and a pc screen. (Photo Illustration by Pavlo Gonchar/SOPA Images/LightRocket via Getty Images) SOPA Images/LightRocket via Getty Images Newmont Corporation (NYSE: NEM), the world's largest gold miner, has seen its stock underperform over the last month, falling by 13% compared to the S&P 500 which was up 1.5%. The decline in stock prices has been primarily due to th ...

Rising costs are preventing this mining company from cashing in on rising gold prices. Shares of Newmont Corporation (NEM 1.53%) dropped 15% last month, according to data provided by S&P Global Market Intelligence. The mining stock released quarterly-earnings results in October that were mostly in line with analyst expectations. However, its commentary raised concerns about rising costs. Newmont's headline figures aligned with expectations Newmont Corporation's quarterly-earnings report looked positive at f ...