Newmont Corporation (NEM - Free Report) has issued revised 2020 view and confirmed its long-term guidance.
The company stated that almost all of its operating mines have been deemed as an essential activity in every jurisdiction where it operates. The updated view is based on the assumption that the company’s operations will continue throughout the remainder of 2020 without considerable interruptions.
For 2020, Newmont now projects attributable gold production to be nearly 6 million ounces compared with 6.4 million ounces expected earlier. Costs applicable to sales (CAS) are now expected to be $775 per ounce, up from $750 per ounce anticipated earlier. The company projects all-in sustaining costs (AISC) at $1,015 per ounce, up from $975 per ounce expected earlier.
Notably, the revised projections reflect the impacts of five operations that were temporarily placed into care and maintenance for an average of 45 days due to the coronavirus pandemic. Moreover, Newmont expects the second quarter to witness lowest production and highest cost as the sites ramp up from care and maintenance.
Newmont’s long-term view is unchanged with stable production of more than 6 million ounces with costs improving from 2021 through 2024.
Newmont’s shares have surged 115% in the past year against the industry’s decline of 4.1%.
Zacks Rank & Other Key Picks
Newmont currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the basic materials space are Agnico Eagle Mines Limited (AEM - Free Report) , The Scotts Miracle-Gro Company (SMG - Free Report) and Barrick Gold Corporation (GOLD - Free Report) , all carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
Agnico Eagle has an expected earnings growth rate of 75.3% for 2020. The company’s shares have surged 66.2% in the past year.
Scotts Miracle-Gro has an expected earnings growth rate of 17.7% for fiscal 2020. Its shares have returned 58.5% in the past year.
Barrick has an expected earnings growth rate of 64.7% for 2020. The company’s shares have surged 131.9% in the past year.
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