Loading ...“Newmont’s quarterly average realized price for gold jumped about 41% to $2,944 per ounce, compared with a year ago, while gold production fell 8.3% to 1.54 million ounces, hurt by reduced contributions from its non-core operations.”
We have spent most of April above $3K. Imagine what their earnings will look like if that avg. selling price jumps to $3,300 and the 8% production glitch gets remedied.
They are trading at 11 x earnings right now with gold realized at $2944. I believe that’s historically cheap for them and backward looking. They are paying a paltry dividend of $1 or 1.88%. They should immediately triple that dividend and be doing so without risk. I believe if they did, their shares would command a higher price.
The question becomes, what are they doing with their profits? Paying down debt? Looking to acquire assets?- if so, they better be producing assets. This is where we find out if their management is worth their weight.
I’m not sure why Blackrock would acquire 8.7% of the company unless they expected these shares to either pay them via dividend or go much higher. you can imagine they’ll be looking for seats on the board.
Looks like we’ve got some more correcting to do.