Why We’re Revising Our Price Estimate For Newmont Mining To $30
We are raising our price estimate for Newmont Mining by 24%, which is primarily driven by an improvement in our pricing forecasts for gold and copper. An increase in the investment demand for gold has driven up the prices of the metal, which is reflected in our revised price forecasts. A moderation in the Fed’s stance pertaining to the pace of interest rate hikes and economic weakness in economies such as the Eurozone and Japan has increased the attractiveness of gold as a safe haven investment, driving up gold prices. The success of Newmont Mining’s cost rationalization efforts, in addition to our revised pricing forecasts for gold, has prompted us to revise upwards our margin forecasts for Newmont’s gold mining divisions as well. Lastly, the recent announcement of a fiscal stimulus in China, the world’s largest copper consumer, has favorably impacted copper prices, which is reflected in our revised forecasts for Newmont’s copper mining division.
Have more questions about Newmont Mining? See the links below.
- What Is Newmont Mining’s Revenue And EBITDA Breakdown?
- What Is Newmont Mining’s Fundamental Value Based On Expected 2015 Results?
- How Has Newmont Mining’s Revenue Composition Changed Over The Last 5 Years?
- By What Percentage Did Newmont Mining’s Revenue & EBITDA Decline In The Last 5 Years?
- By What Percentage Can Newmont Mining’s Revenue & EBITDA Grow In The Next 3 Years?
- How Will Newmont Mining’s Revenue Composition Change by 2020?
- Newmont Mining: A Look Back At The Year 2015
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