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Newmont Goldcorp (NEM) Resumes Operations at Penasquito Mine

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Newmont Goldcorp Corporation (NEM - Free Report) recently announced that it is safely resuming operations at the Mexico-based Penasquito mine. The move follows the lifting of an illegal blockade along with discussions sponsored by the national government.

The company stated that concentrate shipments and delivery of supplies to the site have resumed. Moreover, the workers are undergoing orientation sessions to make sure that production starts in a safe and orderly manner.

Notably, the temporary suspension of operations started on Apr 29, 2019. During the period of suspension, the company utilized the downtime to undertake maintenance on various equipment and systems.

Newmont Goldcorp is committed to have a good-faith dialogue with the trucking company and the San Juan de Cedros community, which is one of the neighboring communities. This will enable it to achieve a fair and lasting resolution related to contracts along with water availability issues.

In 2018, the mine produced 272,000 ounces of gold and provided employment to more than 6,000 people. The Penasquito has improved water availability to neighboring communities through various projects including water treatment plants, new pipelines, wells and water trucks.

Newmont Goldcorp’s shares have lost 1.7% in the past year, against the 20.1% rise of the industry.

The company expects to produce 5.2 million ounces of attributable gold in 2019. It expects all-in sustaining costs to be $935 per ounce. Also, costs applicable to sales for gold is expected to be $710 per ounce.

Zacks Rank & Key Picks

Newmont Goldcorp currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the basic materials space are Materion Corporation (MTRN - Free Report) , Flexible Solutions International Inc (FSI - Free Report) and AngloGold Ashanti Limited (AU - Free Report) . These stocks currently sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Materion has an expected earnings growth rate of 27.3% for 2019. The company’s shares have gained 20.3% in the past year.

Flexible Solutions has a projected earnings growth rate of 342.9% for the current year. The company’s shares have surged 151.5% in a year’s time.

AngloGold has an estimated earnings growth rate of 90.6% for the current year. Its shares have rallied 93.1% in the past year.

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