Group 1: Gold Market Overview - Gold has been one of the best-performing assets over the last 12 months, increasing by approximately 29% [1] - The price of gold has climbed an average of 9.7% over the last 25 years, although it underperforms compared to the SPY ETF's 27% annual return [2] - Gold serves as a hedge against inflation, maintaining its value during economic uncertainty [2] Group 2: Gold Mining Stocks - Newmont Corporation, the world's largest gold miner, has a current stock price of $56.57 with a 12-month price forecast of $54.55, indicating a potential downside of 3.57% [5] - Newmont's revenue and earnings saw significant year-over-year growth in 2024, benefiting from rising gold prices, with expectations for continued performance in 2025 [6] - Freeport-McMoRan, while not primarily a gold miner, has gold accounting for about 14% of its revenue, with a current stock price of $33.33 and a 12-month price forecast of $48.39, suggesting a 45.20% upside [7][8] - Barrick Gold, another major player, has a current stock price of $20.91 and a 12-month price forecast of $24.21, indicating a 15.77% upside, with significant exposure to gold [11][12]

Core Viewpoint - Newmont Corporation's stock is currently trading flat, following a significant increase last week due to a surge in gold prices, with a potential resistance level identified around $58.00, making it the Stock of the Day [1]. Price Action and Resistance - Resistance is defined as a price level where there is substantial sell interest, which can halt or pause upward trends in stock prices [2][3]. - When a stock reaches resistance, the dynamics shift as there are enough shares available to meet buy orders, often leading to a halt in rallies [3]. - A key factor contributing to the formation of resistance is buyer's remorse, where investors regret their purchases if prices decline, leading them to place sell orders if prices return to their buy levels [4][5]. Historical Context - Newmont previously encountered resistance at the $58.00 level, resulting in a price reversal [6]. - After the last reversal at $58.00, the stock experienced a rapid decline to approximately $48.00, indicating a lack of sufficient buyers during that drop [8]. Current Market Dynamics - Currently, as Newmont's stock price approaches the $58.00 level again, there is a lack of remorseful buyers eager to sell, which may facilitate upward movement [9]. - Buyers have had to be aggressive in pushing the price higher, indicating a gap up in the stock price [10]. - There is a strong possibility that the upward movement will continue, but it may also face a pause or reversal upon reaching the $58.00 resistance level [11].

Core Viewpoint - Newmont stock is expected to rally further as gold prices reach record highs, with analysts optimistic about the company's performance amid rising gold prices and operational improvements [1][4]. Company Performance - Newmont is the world's largest gold producer, projected to produce 6.8 million attributable ounces of gold in 2024, alongside other minerals like silver, copper, zinc, and lead [3]. - The company experienced a significant turnaround in 2024, with sales increasing by 57% following the acquisition of Newcrest in 2023, resulting in a net profit of $3.4 billion compared to a net loss of nearly $2.5 billion in 2023 [6]. Stock Analysis - Analyst Daniel Major upgraded Newmont's stock rating from neutral to buy and raised the price target from $50 to $60 per share, indicating a potential 20% upside from the stock's closing price on April 10 [5]. - Newmont stock has underperformed compared to the industry and gold prices in recent years due to operational challenges and high costs, but the outlook for 2025 is more positive with expectations of increased sales driven by soaring gold prices [6][8]. Market Context - Gold prices have surged, reaching over $3,220 per ounce, with predictions from UBS analysts suggesting a potential rise to $3,500 per ounce by 2026, driven by investor demand amid economic uncertainties [4]. - The broader stock market has seen volatility, but Newmont stock has provided stability with solid gains, hitting a weekly intraday high of 26% [2]. Financial Strategy - Newmont is actively reducing debt and anticipates raising approximately $2.5 billion in net cash proceeds from asset sales this year, with expectations of returning much of this cash to shareholders through share buybacks [7].

Core Viewpoint - Gold prices have reached a record high of $3,211 per ounce, driven by a weaker U.S. dollar, increased safe-haven demand, and escalating U.S.-China trade tensions [1]. Group 1: Gold Price Trends and Industry Performance - Gold prices have increased by 22% year to date, with the Zacks Mining - Gold industry rising by 34.3% compared to a 1.6% decline in the Zacks Basic Materials sector [2]. - The ongoing trade tensions and robust central bank buying are expected to sustain this upward trend in gold prices [2]. Group 2: AngloGold Ashanti Overview - AngloGold Ashanti has a diverse portfolio with 11 operating assets across multiple countries, including Argentina, Australia, and Ghana [4]. - The acquisition of Centamin in November 2024 added a significant Tier 1 asset (Sukari) capable of producing 500,000 ounces annually, increasing the proportion of gold production from Tier 1 assets from 62% to 67% [5]. - Total gold production for 2024 was 2.661 million ounces, with projections for 2025 ranging from 2.9 to 3.225 million ounces [6]. - The company ended 2024 with an adjusted net debt to adjusted EBITDA ratio of 0.21, the lowest since 2011, and had $2.6 billion in liquidity [7]. - A revised dividend policy targets a 50% payout of free cash flow, with a base dividend of 50 cents per share [8]. - Total cash costs per ounce rose by 4% year over year to $1,157, while all-in-sustaining costs (AISC) increased to $1,611 per ounce [9]. Group 3: Newmont Corporation Overview - Newmont has a diversified portfolio that includes copper, zinc, lead, and silver, with operations in favorable mining jurisdictions [11]. - The integration of Newcrest assets solidified Newmont's position as the world's largest gold producer, with 6.8 million attributable gold ounces produced in 2024 [12][13]. - Newmont's net debt to adjusted EBITDA ratio stood at 0.6X at the end of 2024, with total liquidity of $7.7 billion [14]. - The company paid out $1.1 billion in dividends in 2024, with a payout ratio of 28.74% [14]. - Gold costs applicable to sales increased by 7% to $1,126 per ounce, while AISC rose by 5% to $1,516 per ounce [15]. Group 4: Earnings Estimates and Stock Performance - The Zacks Consensus Estimate for AngloGold Ashanti's 2025 earnings is $2.49, indicating a year-over-year growth of 16.7% [16]. - In contrast, Newmont's 2025 earnings estimate is $3.69, reflecting a 6% increase [17]. - Year to date, AngloGold Ashanti's stock has surged by 68.3%, while Newmont has gained 36.9% [19]. Group 5: Valuation and Investment Considerations - AngloGold Ashanti is trading at a forward earnings multiple of 15.29X, while Newmont is at 15.70X, both above the industry average of 15.00X [21]. - The average price target for AngloGold Ashanti suggests a 6.05% decline, while Newmont's target indicates an 11.70% increase [23][24]. - AngloGold Ashanti's return on equity is 11.47%, lower than Newmont's 13.46% [25]. Group 6: Conclusion - Both companies are positioned to benefit from rising gold prices, but Newmont's diversification into copper, stable dividend policy, and higher return on equity make it a more attractive investment choice compared to AngloGold Ashanti [26][27].

About this content About Emily Jarvie Emily began her career as a political journalist for Australian Community Media in Hobart, Tasmania. After she relocated to Toronto, Canada, she reported on business, legal, and scientific developments in the emerging psychedelics sector before joining Proactive in 2022. She brings a strong journalism background with her work featured in newspapers, magazines, and digital publications across Australia, Europe, and North America, including The Examiner, The Advocate, ...

Three gold stocks: Which one should you buy?At long last, it's Friday, and a turbulent week of selling, buying, and even more selling is at an end.Investors seem exhausted by the roller-coaster week. Major market indices are slightly in the green as traders pause in relief, unfazed by the latest economic news that China is retaliating from the most recent U.S. tariffs hike on Chinese exports (to 145%) by raising its own tariff on U.S. exports to 125%. Gold stocks, meanwhile, are looking like one bright pock ...

Newmont Corporation (NEM) shares rallied 8.4% in the last trading session to close at $48.75. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 3.6% gain over the past four weeks.NEM's shares rallied on a surge in gold prices on safe-haven demand after President Trump hiked tariffs on China to 125%, stoking fears of deeper trade disruptions. This gold and copper miner is expected to post quarterly earnings of $ ...

Core Viewpoint - Gold stocks are gaining traction as a hedge against market volatility caused by ongoing tariff disputes, with significant price increases observed in several gold mining companies [1][3][4]. Gold Market Performance - Gold prices increased by over 3% as investors sought safe-haven assets amid stock market sell-offs triggered by tariffs [3][4]. - Gold stocks, particularly those of companies with strong operational performances, have rallied due to the direct impact of rising gold prices on their financials [5]. Company Highlights - Newmont Corporation, the world's second-largest gold company, saw its shares rise by 8.8% with a market capitalization of $52.2 billion [2]. - Harmony Gold reported a 19% increase in revenue and a 33% surge in net income, despite a 4% drop in production, with cash flow from operations increasing by 46% year-over-year [6]. - AngloGold Ashanti's revenue jumped 26% in 2024, leading to a net profit of $1 billion compared to a net loss of $222 million in 2023, with a dividend yield of 4.1% [7]. - Iamgold Corp experienced a 43% increase in gold production and a 65% rise in revenue to $1.6 billion in 2024, projecting further growth in 2025 [10]. - Newmont Mining reported a net income of $3.4 billion in 2024, recovering from a net loss of $2.5 billion in 2023, and generated $6.3 billion in cash flow from operations [11]. Future Outlook - The year 2025 is anticipated to be significant for gold mining companies, with expectations of continued growth driven by rising gold prices amid ongoing trade tensions [12].

Core Viewpoint - Newmont Corporation (NEM) and Barrick Gold Corporation (GOLD) are two leading gold mining companies, both benefiting from soaring gold prices due to global economic uncertainties and trade tensions, making them relevant for investors in the precious metals sector [1][2]. Group 1: Newmont Corporation (NEM) - Newmont is focused on growth projects, including the Tanami Expansion 2 in Australia and the Ahafo North expansion in Ghana, which are expected to enhance production capacity and extend mine life [4]. - The acquisition of Newcrest Mining Limited has created a robust portfolio, with expected annual run-rate synergies of $500 million, enhancing shareholder value [5]. - Newmont's attributable gold production increased by approximately 9% year over year in Q4 2024, with divestitures expected to yield total gross proceeds of $4.3 billion [6]. - The company reported liquidity of $7.7 billion at the end of 2024, with operating cash flow from continuing operations rising to $6.3 billion, up from $2.8 billion in 2023 [7]. - Newmont returned $1.1 billion to shareholders through dividends and share repurchases in 2024, with a dividend yield of 2.3% and a payout ratio of 29% [8]. - However, Newmont faces challenges with rising production costs, with gold costs applicable to sales increasing by roughly 7% year over year in 2024, and all-in-sustaining costs projected to rise to $1,630 per ounce in 2025 [9]. Group 2: Barrick Gold Corporation (GOLD) - Barrick has made a strong recovery in 2024, driven by rising gold prices, despite facing high production costs and operational issues in the previous year [11]. - The company is advancing key growth projects, including Goldrush and the Pueblo Viejo plant expansion, which are expected to significantly boost production [12]. - Barrick reported cash and cash equivalents of approximately $4.1 billion at the end of 2024, with operating cash flows increasing by 20% year over year to around $4.5 billion [13]. - The company returned about $1.2 billion to shareholders in 2024, with a dividend yield of 2.3% and a payout ratio of 31% [13]. - Barrick's cash costs per ounce of gold and all-in-sustaining costs increased by around 11% year over year in 2024, with projections for 2025 indicating further increases [14]. Group 3: Price Performance and Valuation - Year to date, NEM stock has increased by 18.7%, while GOLD stock has gained 14%, compared to the Zacks Mining – Gold industry's increase of 24.9% [15]. - NEM is trading at a forward 12-month earnings multiple of 13.62X, representing a 12% discount to the industry average of 15.55X [16]. - The Zacks Consensus Estimate for NEM's 2025 sales and EPS indicates declines of 3.6% and 7.2%, respectively, while GOLD's estimates suggest growth of 4.7% and 10.3% [18][21]. - Barrick appears more attractively priced with a forward earnings multiple of 12.44X, lower than its five-year median and below the industry average [19]. Group 4: Investment Outlook - Both NEM and GOLD are well-positioned to benefit from the surge in gold prices, demonstrating strong financial performance and commitment to shareholder returns [24]. - Barrick may have a slight edge over Newmont due to its more attractive valuation and positive growth projections, suggesting better investment prospects in the current market environment [25].

Market Overview - As the first quarter of 2025 concluded, initial market optimism faded due to trade war fears and economic uncertainty [1] - No S&P 500 sector achieved double-digit gains, with energy leading at an 8.08% rise [2] Top Performers - CVS Health emerged as the top-performing S&P 500 stock, surging 52.8% following stronger-than-expected fourth-quarter earnings [3] - Philip Morris International followed with a 33.1% gain, driven by growth in its smoke-free product segment and high dividend appeal [5] - Newmont Corporation rose 30.5% due to increasing gold prices amid market uncertainty [6] - AT&T Inc. gained nearly 26%, benefiting from its domestic business model that insulated it from tariff volatility [7] Financial Highlights - CVS Health exceeded Wall Street estimates on revenue and adjusted earnings per share, trading at $66.79 [4] - Philip Morris International offers a quarterly dividend of $1.35 per share, with shares trading at $161.75 [5] - Newmont Corporation's stock is trading at $47.60 [6] - AT&T's stock is currently at $28.73, favored by income-focused investors due to its strong dividend yield [7]