After the strong AI-driven bull run in growth stocks which lasted for almost two years, I seek for stocks to increase exposure to safer assets. The world's largest gold miner, Newmont Corporation (NYSE: NEM ), looks likeComing from an IT background, I have dived into the U.S. stock market seven years ago by managing portfolio of my family. Starting managing real money has been challenging for the first time, but long hours of mastering fundamental analysis of public companies paid off and now I feel very co ...

Investment Rating - The report assigns an "Outperform" rating to the company, indicating that the stock's total return over the next 12-18 months is expected to exceed the return of its relevant broad market benchmark [1][25]. Core Insights - The report highlights that Newmont is a leading global gold company and producer of copper, silver, zinc, and lead, with high-quality mining areas across various regions including Africa, Australia, and North America. The company is recognized for its strong performance in environmental, social, and governance practices [42][45]. - In 2023, Newmont completed the acquisition of Newcrest Mining Limited, enhancing its position as the world's largest gold mining company by adding five active mines and two projects to its portfolio [42][45]. - The gold business constitutes 89% of Newmont's sales, while other metals account for 11%. Despite a slight decrease in gold production due to a labor strike, the average realized price of gold increased significantly to $1954 per ounce in 2023, up 9% from the previous year [43][46]. - The report anticipates that gold prices will continue to rise during the current interest rate cut cycle, supported by geopolitical tensions and a complex global situation [44][47]. Summary by Sections Company Overview - Newmont is the only gold producer listed in the S&P 500 Index and has a strong reputation for its governance practices. The company has a long history, with significant acquisitions and expansions that have solidified its industry leadership [42][45][49]. Financial Performance - In 2023, Newmont reported revenues of $11.812 billion and a net income of $2.521 billion. The adjusted net income was $1.324 billion, reflecting the company's robust financial health despite production challenges [69]. Production and Pricing - Newmont's equity gold production in 2023 was 5.545 million ounces, a decrease of 6.7% year-on-year. The company expects full-year gold production to be around 6.75 million ounces, with unit selling costs and comprehensive maintenance costs aligned with initial guidance [43][46].

Group 1 - Newmont Corporation's stock price has decreased by over 20% since September, impacting its relative performance among the top five gold miners by market capitalization [1] - The article highlights the significance of this decline in the context of the gold mining industry and its competitive landscape [1] Group 2 - The author, Manika, has over 20 years of experience in investment management, stock broking, and investment banking, indicating a strong background in financial analysis [1] - Manika runs a profile called Long Term Tips, focusing on opportunities in the green economy, which suggests a strategic interest in sustainable investments [1]

Group 1 - Newmont Corporation, the world's largest gold miner, has sold its Eleonore mine in Quebec for $795 million as part of its portfolio optimization strategy [1] - The sale is indicative of Newmont's broader strategy to streamline its operations and focus on more profitable assets [1]

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]

Group 1 - Proactive provides fast, accessible, informative, and actionable business and finance news content to a global investment audience [2][3] - The news team covers a wide range of sectors including biotech, pharma, mining, natural resources, battery metals, oil and gas, crypto, and emerging technologies [3] - Proactive has a presence in key finance and investing hubs with bureaus and studios located in major cities such as London, New York, and Sydney [2] Group 2 - The company emphasizes the use of technology to enhance workflows and improve content production [4] - Proactive employs automation and software tools, including generative AI, while ensuring all content is edited and authored by humans [5]

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].

Core Insights - The article highlights the investment strategies and achievements of Paul Franke, a seasoned investor with 38 years of trading experience, emphasizing his contrarian stock selection style and algorithmic analysis [1] Group 1: Investment Strategies - Paul Franke developed a system called "Victory Formation," which focuses on identifying supply/demand imbalances through specific stock price and volume movements [1] - The "Bottom Fishing Club" articles target deep-value stocks or those showing significant positive technical momentum reversals [1] - The "Volume Breakout Report" articles analyze positive trend changes supported by strong price and volume trading actions [1] Group 2: Performance and Recognition - Franke was consistently ranked among the top investment advisors nationally during the 1990s and achieved the 1 position in the Motley Fool® CAPS stock picking contest in 2008 and 2009 out of over 60,000 portfolios [1] - As of September 2024, he is ranked in the Top 3% of bloggers by TipRanks® for 12-month stock picking performance over the last decade [1] Group 3: Risk Management - Franke advises investors to implement stop-loss levels of 10% or 20% on individual stock choices and to maintain a diversified portfolio of at least 50 well-positioned stocks to enhance regular stock market outperformance [1]