Newmont Corporation
NEM
announced the successful completion of two key projects at its Musselwhite mine at Lake Opapimiskan along with full commissioning of the mine’s conveyor system and the material handling project.
Per management, Musselwhite is an important part of its North America region. The commissioning of these two projects positions Newmont to contribute to its portfolio in the long term. Moreover, the material handling and the conveyor systems efficiently work together to move material from deeper mine levels to the surface.
Further, the company stated that haul distances are lowered as the ore crushed at depth will be lifted from the underground crushers to the conveyor system. It will then be brought to the surface for processing.
Newmont’s shares have surged 53.2% in the past year compared with the
industry
’s 20.3% rise.
In third-quarter 2020 earnings call, Newmont retained its attributable gold production target of about 6 million ounces for 2020. The company continues to expect gold cost applicable to sales of $760 per ounce and all-in sustaining costs of $1,015 per ounce for this year.
For 2020, the company expects capital expenditures to be around $1.4 billion. Newmont 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.
Zacks Rank & Key Picks
Newmont currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the basic materials space are
Pretium Resources, Inc.
PVG
,
BHP Group
BHP
and
Silvercorp Metals Inc.
SVM
, all carrying a Zacks Rank #2 (Buy). You can see
the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here
.
Pretium Resources has an expected earnings growth rate of 25.5% for 2020. Its shares have returned 9.5% in the past year.
BHP Group has an expected earnings growth rate of 31.3% for fiscal 2021. The company’s shares have gained 17.5% in the past year.
Silvercorp Metals has an expected earnings growth rate of 40% for fiscal 2021. The company’s shares have increased 17.2% in the past year.
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