Lawson Winder, an analyst from Bank of America Securities, reiterated the Buy rating on Newmont Mining (NEM – Research Report). The associated price target is $50.00.
Lawson Winder’s rating is based on a variety of positive factors surrounding Newmont Mining’s recent performance and future prospects. The company has outperformed expectations in the first quarter of 2024, showcasing a robust financial and operational standing. Notably, Newmont’s Q1’24 earnings significantly exceeded both Bank of America’s estimates and the wider market consensus, which suggests a strong start to the year. Additionally, the successful sale of the Lundin Gold stream for $330 million cash highlights the company’s proactive approach to asset monetization, aiming for a portfolio centered around their Tier 1 assets. This strategic move bodes well for future value creation and operational focus, reinforcing the Buy rating.
Furthermore, Newmont’s gold production in Q1’24 was impressively above forecasts, with particularly strong results from their Australian and African operations. The company managed to maintain lower costs, both in terms of Cost Applicable to Sales (CAS) and All-In Sustaining Costs (AISC), which also came in under the expected figures. NEM’s reaffirmation of its full-year guidance for 2024 instills confidence in their ability to maintain this positive trajectory. The light free cash flow reported for the quarter still surpassed forecasts, and with the company on track to divest non-core assets efficiently, these strategic decisions are expected to strengthen Newmont’s financial position. All these aspects collectively underpin the rationale for Lawson Winder’s Buy recommendation.
Winder covers the Basic Materials sector, focusing on stocks such as Alcoa, Cleveland-Cliffs, and Commercial Metals Company. According to TipRanks, Winder has an average return of -0.2% and a 51.97% success rate on recommended stocks.
In another report released on April 19, National Bank also maintained a Buy rating on the stock with a C$69.00 price target.
TipRanks tracks over 100,000 company insiders, identifying the select few who excel in timing their transactions. By upgrading to TipRanks Premium, you will gain access to this exclusive data and discover crucial insights to guide your investment decisions. Begin your TipRanks Premium journey today.
Newmont Mining (NEM) Company Description:
Newmont Corporation is a mining company and has the world’s largest gold reserve base in the industry. It engages in the exploration and production of gold, copper, silver, zinc, and lead.
