We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Newmont (NEM) Defers Peru Project to Optimize Portfolio
Read MoreHide Full Article
Newmont Corporation (NEM - Free Report) said that it would defer the full-funds investment decision for the Yanacocha Sulfides project in Peru for a minimum of two years. This move is intended to advance Newmont's portfolio optimization strategy aimed at maximizing returns for shareholders and creating long-term value for stakeholders. The company intends to prioritize other value-accretive opportunities and maintain a disciplined capital allocation strategy.
The deferral of the Yanacocha Sulfides project is the first step in Newmont's plan to achieve at least $2 billion in near-term cash flow improvements within the first two years as it evaluates opportunities to re-sequence project capital and optimize its combined portfolio.
The deferral of the investment decision will result in a reduction of development capital expenditures, including roughly $300 million, which was part of Newmont's outlook for 2024.
The company's proposed acquisition of Newcrest will create a leading portfolio of Tier 1 operations and enhance its pipeline of value-accretive projects. The company aims to build a more profitable and resilient future by strategically reevaluating and rationalizing its project portfolio.
Newmont remains committed to its long-term strategy and the Yanacocha mine, which has the potential to operate as a Tier 1 gold and copper mine for several decades. The company will continue to engage with government stakeholders, business partners and local communities in Peru as it prepares for a future investment decision on the Yanacocha Sulfides project.
The Yanacocha Sulfides project in Peru aims to develop sulfide deposits at the Yanacocha mine through an integrated processing circuit, including an autoclave, to produce around 45% gold, 45% copper, and 10% silver. The first phase of the project focuses on developing the Yanacocha Verde and Chaquicocha deposits, extending the mine's operations beyond 2040. Subsequent phases have the potential to further extend the mine's lifespan for multiple decades.
The company has lost 33.3% in the past year compared with the industry’s 1.4% fall in the same period.
The Zacks Consensus Estimate for ATI’s current-year earnings is pegged at $2.24 per share, indicating year-over-year growth of 12.6%. The company’s shares have gained around 76.3% over the past year. ATI beat the Zacks Consensus Estimate in three of the last four quarters while delivering in-line results on the other occasion. It delivered a trailing four-quarter earnings surprise of 13%, on average.
The Zacks Consensus Estimate for GFI’s current-year earnings has been revised 4% upward in the past 60 days. The consensus estimate for the current-year earnings of GFI is currently pegged at $1.05, implying year-over-year growth of 8.3%. Gold Fields’shares have rallied roughly 49.6% in the past year.
The Zacks Consensus Estimate for Linde’s current-year earnings has been revised 4.4% upward in the past 60 days. LIN beat the Zacks Consensus Estimate in all the last four quarters, with the average earnings surprise being 6.9%. The company’s shares have gained 23.4% in the past year.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Newmont (NEM) Defers Peru Project to Optimize Portfolio
Newmont Corporation (NEM - Free Report) said that it would defer the full-funds investment decision for the Yanacocha Sulfides project in Peru for a minimum of two years. This move is intended to advance Newmont's portfolio optimization strategy aimed at maximizing returns for shareholders and creating long-term value for stakeholders. The company intends to prioritize other value-accretive opportunities and maintain a disciplined capital allocation strategy.
The deferral of the Yanacocha Sulfides project is the first step in Newmont's plan to achieve at least $2 billion in near-term cash flow improvements within the first two years as it evaluates opportunities to re-sequence project capital and optimize its combined portfolio.
The deferral of the investment decision will result in a reduction of development capital expenditures, including roughly $300 million, which was part of Newmont's outlook for 2024.
The company's proposed acquisition of Newcrest will create a leading portfolio of Tier 1 operations and enhance its pipeline of value-accretive projects. The company aims to build a more profitable and resilient future by strategically reevaluating and rationalizing its project portfolio.
Newmont remains committed to its long-term strategy and the Yanacocha mine, which has the potential to operate as a Tier 1 gold and copper mine for several decades. The company will continue to engage with government stakeholders, business partners and local communities in Peru as it prepares for a future investment decision on the Yanacocha Sulfides project.
The Yanacocha Sulfides project in Peru aims to develop sulfide deposits at the Yanacocha mine through an integrated processing circuit, including an autoclave, to produce around 45% gold, 45% copper, and 10% silver. The first phase of the project focuses on developing the Yanacocha Verde and Chaquicocha deposits, extending the mine's operations beyond 2040. Subsequent phases have the potential to further extend the mine's lifespan for multiple decades.
The company has lost 33.3% in the past year compared with the industry’s 1.4% fall in the same period.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
Newmont currently carries a Zacks Rank #2 (Buy).
Other top-ranked stocks in the basic materials space are ATI Inc (ATI - Free Report) , carrying a Zacks Rank #1 (Strong Buy) and Gold Fields Limited (GFI - Free Report) , and Linde Plc (LIN - Free Report) , carrying a Zacks Rank #2 each. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for ATI’s current-year earnings is pegged at $2.24 per share, indicating year-over-year growth of 12.6%. The company’s shares have gained around 76.3% over the past year. ATI beat the Zacks Consensus Estimate in three of the last four quarters while delivering in-line results on the other occasion. It delivered a trailing four-quarter earnings surprise of 13%, on average.
The Zacks Consensus Estimate for GFI’s current-year earnings has been revised 4% upward in the past 60 days. The consensus estimate for the current-year earnings of GFI is currently pegged at $1.05, implying year-over-year growth of 8.3%. Gold Fields’shares have rallied roughly 49.6% in the past year.
The Zacks Consensus Estimate for Linde’s current-year earnings has been revised 4.4% upward in the past 60 days. LIN beat the Zacks Consensus Estimate in all the last four quarters, with the average earnings surprise being 6.9%. The company’s shares have gained 23.4% in the past year.