Aggressive · Stocks to Consider and Updates

Newmont Mining Posts Mixed Results; Outlook Stable

Newmont Mining Corp. (NYSE: NEM – $29.60) the Colorado-based gold and copper producer, reported adjusted third quarter earnings of $0.33 that beat the consensus estimate of $0.20, but a penny below last year’s tally. Revenue missed Wall Street expectations at $1.73 billion from $1.88 billion a year ago and lagging behind the analyst consensus of $1.77 billion. Newmont reported consolidated cash flow from continuing operations of $428 million and free cash flow of $154 million. Gold all-in sustaining costs was $927 per ounce, lower than the company’s full year guidance and attributable gold production for the quarter was 1.29 million ounces and in line with full year guidance.

       Looking ahead, Newmont’s outlook reflects stable gold production, ongoing investment in its operating assets and promising growth prospects assuming a $1,200 per ounce gold price and a $2.50 per pound copper price. Despite a decline in revenue, production is expected to increase in 2019. NEM should also benefit from new development and exploration projects in Australia, Columbia, Mexico and North America. Given the company’s strong free cash flow and productivity, and below-peer-average valuation metrics, long-term positions of 5% in a well diversified aggressive portfolio can be maintained. In addition, the dividend, which rose sharply in 2018, yields 1.8% at current levels.

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