Canada markets closed
  • S&P/TSX

    18,060.26
    -163.28 (-0.90%)
     
  • S&P 500

    3,811.15
    -18.19 (-0.48%)
     
  • DOW

    30,932.37
    -469.64 (-1.50%)
     
  • CAD/USD

    0.7851
    -0.0088 (-1.11%)
     
  • CRUDE OIL

    61.66
    -1.87 (-2.94%)
     
  • BTC-CAD

    60,283.31
    +1,115.19 (+1.88%)
     
  • CMC Crypto 200

    912.88
    -20.25 (-2.17%)
     
  • GOLD FUTURES

    1,733.00
    -42.40 (-2.39%)
     
  • RUSSELL 2000

    2,201.05
    +0.88 (+0.04%)
     
  • 10-Yr Bond

    1.4600
    -0.0580 (-3.82%)
     
  • NASDAQ

    13,192.35
    +72.92 (+0.56%)
     
  • VOLATILITY

    27.95
    -0.94 (-3.25%)
     
  • FTSE

    6,483.43
    -168.53 (-2.53%)
     
  • NIKKEI 225

    28,966.01
    -1,202.26 (-3.99%)
     
  • CAD/EUR

    0.6499
    -0.0013 (-0.20%)
     

Newmont (NEM) Set to Repurchase Shares Worth Up to $1 Billion

Zacks Equity Research
·3 min read

Newmont Corporation NEM recently announced that its board has approved a share repurchase program for up to $1 billion of common equity. This repurchase will be completed over the next 18 months. It is in addition to Newmont’s industry-leading dividend framework. It will be carried out at the company’s discretion, using open market repurchases in the authorization period.

Newmont follows a capital allocation strategy, wherein it maintains financial strength and flexibility, balances stable reinvestment in the business and provides good returns to shareholders.

The company has a dividend framework, which includes a sustainable base dividend and additional returns at higher gold prices. The repurchase program builds on the $1 billion 2020 program, which retired 22 million shares at the average price of $45 per share.

The company noted that the share repurchase program further underscores its disciplined operating model and a world-class and sustainable portfolio to provide industry leading returns to shareholders. The company has returned more than $2.7 billion to shareholders through dividends and share buybacks since January 2019.

Shares of Newmont have gained 42.3% in the past year compared with 28.6% rise of the industry.

For 2020, Newmont had retained its attributable gold production target of around 6 million ounces. The company continues to expect gold cost applicable to sales to be $760 per ounce and all-in sustaining costs to be $1,015 per ounce.

The company expects capital expenditures for 2020 to be around $1.4 billion. It is progressing with majority of its development and sustaining capital projects — including Tanami Expansion 2 and Subika Underground — as well as advancing laybacks at Boddington and Ahafo.

Newmont Corporation Price and Consensus

 

Newmont Corporation Price and Consensus
Newmont Corporation Price and Consensus

Newmont Corporation price-consensus-chart | Newmont Corporation Quote

 

Zacks Rank & Key Picks

Newmont currently carries a Zacks Rank #4 (Sell).

Some better-ranked stocks in the basic materials space are Fortescue Metals Group Limited FSUGY, BHP Group BHP and Impala Platinum Holdings Limited IMPUY.

Fortescue has a projected earnings growth rate of 75.5% for the current fiscal. The company’s shares have surged around 141% in a year. It currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

BHP has an expected earnings growth rate of 59.5% for the current fiscal. The company’s shares have gained around 25% in the past year. It currently flaunts a Zacks Rank #1.

Impala has an expected earnings growth rate of 189.4% for the current fiscal. The company’s shares have rallied around 31.8% in the past year. It currently sports a Zacks Rank #1.

These Stocks Are Poised to Soar Past the Pandemic

The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.

Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.

See the 5 high-tech stocks now>>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
BHP Group Limited (BHP) : Free Stock Analysis Report
 
Newmont Corporation (NEM) : Free Stock Analysis Report
 
Impala Platinum Holdings Ltd. (IMPUY) : Free Stock Analysis Report
 
Fortescue Metals Group Ltd. (FSUGY) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research