Newmont Goldcorp Corporation (NEM - Free Report) announced that the unlawful blockade of the Penasquito mine in Mexico has been lifted. The company is working closely with the state and federal governments for a sustainable, long-term solution.
The move also paves way for resuming the government-sponsored dialogue. Mining operations are temporarily suspended. It is expected to resume after assessment of the situation on the ground and assurances that more blockades will not be allowed.
Notably, Penasquito operations had been suspended since the illegal blockade started on Sep 14, 2019. The initiative was undertaken by the company to protect people, assets as well as the long-term viability of the mine.
The blockade affected the mine’s production output in the third quarter by around 11,000 ounces of gold, 1.7 million ounces of silver, 22.8 million pounds of zinc and 13.7 million pounds of lead. It is also likely to hurt the company’s full-year performance for the mine. Moreover, the figures represent a production shortfall of roughly 11,000 gold ounces and 51,000 gold equivalent ounces from co-products through Sep 30.
Newmont Goldcorp’s shares have rallied 26.9% in the past year compared with 65.9% surge of the industry.
In July, the company announced that it expects attributable gold production for 2019 to be 6.5 million ounces, which reflects Newmont operated assets for the full year and Goldcorp assets from Apr 18, 2019.
For 2019, the company expects all-in sustaining costs for gold to be $975 per ounce. Also, costs applicable to sales for gold are projected at $735 per ounce.
Zacks Rank & Key Picks
Newmont Goldcorp currently sports a Zacks Rank #1 (Strong Buy).
Some other top-ranked stocks in the basic materials space are Kinross Gold Corporation (KGC - Free Report) , Royal Gold, Inc (RGLD - Free Report) and Agnico Eagle Mines Limited (AEM - Free Report) , each sporting a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Kinross has an expected earnings growth rate of 170% for 2019. The company’s shares have surged 69.6% in the past year.
Royal Gold has a projected earnings growth rate of 82.1% for fiscal 2020. The company’s shares have rallied 73.9% in a year’s time.
Agnico Eagle has an estimated earnings growth rate of 158.6% for the current year. Its shares have moved up 57.7% in the past year.
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