43.71 0.00 (0.00%)
After hours: 5:02PM EST
|Bid||43.72 x 2200|
|Ask||43.73 x 2200|
|Day's Range||43.09 - 43.76|
|52 Week Range||29.77 - 44.08|
|Beta (5Y Monthly)||-0.02|
|PE Ratio (TTM)||12.96|
|Earnings Date||Feb. 19, 2020|
|Forward Dividend & Yield||0.56 (1.29%)|
|Ex-Dividend Date||Dec. 02, 2019|
|1y Target Est||48.64|
(Bloomberg Opinion) -- Peak gold production is looking a little more distant. Global supply of the yellow metal has been inexorably approaching its high-water mark, as ore is extracted faster than new discoveries are made. Mines have been aging fast. A sustained price rally can change that picture, as investors rekindle their enthusiasm for large-scale exploration and technological innovation. Bullion miners’ margins will benefit.Gold is coming out of a long period in the investor wilderness. Last year marked the biggest annual gain in prices since 2010. It broke through $1,570 last week — the highest in almost seven years. Gold prices are driven by factors that aren’t always predictable, but there’s certainly scope to go higher, with interest rates low and geopolitical tensions simmering. Holdings of gold in exchange-traded funds, popular with retail investors, are near 2012’s lofty levels. Central banks remain buyers too.This isn’t a repeat of 2011, when gold cracked a gravity-defying $1,900 per ounce — at least, not yet. The all-time high remains some way off, despite a handful of analysts already pointing to $2,000 gold. But the impact of higher prices is already trickling down. All-in sustaining cash costs remained at around $934 per ounce for the largest producers in the third quarter of 2019, according to Bloomberg estimates. The industry measure, though rising, makes for healthy margins. Barrick Gold Corp., for example, reported third-quarter free cash flow of $502 million, compared to $55 million in the previous three months.Last year’s flurry of M&A speaks to that exuberance: from Barrick Gold’s merger with Randgold Resources Ltd., completed that January, to Goldcorp Inc.’s union with Newmont Corp., plus a string of opportunistic offers among smaller companies, and imaginative deals like Barrick’s Nevada joint venture with Newmont. Overall, 2019 marked a return to levels last seen during the boom.There’s more to come, especially among smaller players. Diverging levels of bullishness, after years of homogenous forecasts, will create opportunities for miners to expand portfolios.But the deal spike tells a supply story too, and those numbers are grim even after miners pair up, with reserves down steadily for much of the past decade. The average life of a gold mine shrank to 11 years by 2018 from 16 in 2012, according to consulting company Wood Mackenzie Ltd. Back in 2015, as prices fell toward $1,000 an ounce, the World Gold Council warned that the industry was nearing “peak gold,” after which output would begin to decline. That’s still a threat.Tie-ups are no panacea. The trouble is there’s no short-term link between gold prices and supply. Sure, marginal projects become viable, but that’s a transient boost. Also, the lag effect means mines commissioned in boom years will still take years to come into production. Meanwhile, the scars of the 2011 excesses will make miners reluctant to change their assumptions for the long-term gold price, which are largely still at or below $1,300.The good news is that this works both ways. Higher supply, through exploration or innovation, also won’t depress prices.That should increase enthusiasm for exploration. Budgets have shrunk and success rates have been decreasing, even if gold continues to command the lion’s share of the mining sector’s exploration outlays. So far, spending has increased largely on existing projects rather than new finds. Splashy budgets don’t guarantee success, but the supply numbers will have to rise. There are already signs of long-awaited projects accelerating, such as Polyus PJSC’s Sukhoi Log in Siberia. Then there is investment in technology. This isn’t only to automate and electrify fleets, but to upgrade exploration and processing techniques. For gold, processing improvements could make even complex, refractory ore — resistant to more common extraction methods — attractive. Barclays Plc estimated in December that innovation could add 10% of incremental supply growth through 2025. Cost per ounce may come down 4%. That’s a target worth aiming for. To contact the author of this story: Clara Ferreira Marques at firstname.lastname@example.orgTo contact the editor responsible for this story: Matthew Brooker at email@example.comThis column does not necessarily reflect the opinion of Bloomberg LP and its owners.Clara Ferreira Marques is a Bloomberg Opinion columnist covering commodities and environmental, social and governance issues. Previously, she was an associate editor for Reuters Breakingviews, and editor and correspondent for Reuters in Singapore, India, the U.K., Italy and Russia.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Reduced federal fund rates and wise decision-making of mining companies make gold stocks like Newmont Goldcorp a worthy buy for this year.
The recent scare out of Iran is just another reminder why all investors should have some exposure to gold, such as an investment in the industry leader Newmont Corporation (TSX:NGT)(NYSE:NEM).
Great Lakes Dredge & Dock Corporation ("Great Lakes") (GLDD), the largest provider of dredging services in the United States announced today that Elaine Dorward-King was appointed to its Board of Directors. Dr. Dorward-King was appointed to the class of directors that will stand for election at the upcoming 2020 Annual Meeting of Shareholders. At this time, the Company has not made a determination regarding any committee assignments for Dr. Dorward-King.
Newmont's (NEM) latest quarterly dividend hike is effective upon the approval and declaration of its first-quarter dividend in April 2020.
VANCOUVER — Newmont Corp. is boosting its quarterly dividend by 79 per cent while also dropping reference to Canadian company Goldcorp as part of a centenary-year rebranding.The Denver-based company says the dividend will increase to 25 cents per share.It was only in April last year that Newmont changed its name to Newmont Goldcorp Corp. after it closed a takeover of the Vancouver-based company in a US$10 billion all-stock deal.Newmont says its name is well recognized after almost a 100 years in operation, and that the update represents a natural step for the transformed company.Along with the name change in last year's deal, Newmont committed to making Goldcorp's Vancouver office its North American regional office, maintaining a significant Canadian presence on Newmont's board of directors, and listing on the Toronto Stock Exchange.In November, Newmont announced it would sell the Red Lake mining complex in Ontario that gave Goldcorp its start in the early 1990s, and helped it grow to become one of the world's biggest gold miners. The deal for Red Lake, valued at up to US$475 million, was part of a streamlining of Newmont's portfolio after the takeover.This report by The Canadian Press was first published Jan. 6, 2020.Companies in this story: (TSX:NGT)The Canadian Press
Newmont Refreshes Brand as Company Looks to Next 100 Years of Superior Performance, Value Creation and Sustainability Leadership
The gold mining sector has seen a major rally begin over the past couple weeks, but one major company that's been lagging behind is Newmont Goldcorp Corp (TSX:NGT)(NYSE:NEM).
Healthy growth prospects, disciplined capital allocation strategy and synergies from the merger with Goldcorp are driving Newmont Goldcorp's (NEM) shares.
DENVER , Dec. 24, 2019 /CNW/ - Newmont Goldcorp Corporation (" Newmont Goldcorp ") announced today that on December 18, 2019 , Goldcorp Inc. (" Goldcorp "), its wholly-owned subsidiary, ...
We suggest five gold mining stocks that outperformed the S&P 500 so far this year and are poised well to outperform in the next, backed by upbeat growth estimates and solid Zacks Rank.
GT Gold Corp. ("GT Gold" or the “Company”) (GTT.V) is pleased to report that it has closed its C$8.3 million financing and strategic investment by Newmont Goldcorp Corporation (“Newmont Goldcorp”) (NYSE: NEM, TSX: NGT) announced on November 27, 2019. The Company intends to use the proceeds of the financing to fund all expenditures up to and including the Saddle North Preliminary Economic Assessment (“PEA”), as well as to provide a sizeable buffer for work following the PEA into 2021, to be planned based on the results of the 2020 technical program. The financing consisted of a private placement of 6,877,199 common shares priced at $1.20 per share for total consideration of $8,252,638.80.