Why We’re Revising Our Price Estimate For Newmont Mining To $30

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NEM
Newmont Mining

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.

NEM Revision of price estimate to $30

 

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Have more questions about Newmont Mining? See the links below.

Notes:

1) The purpose of these analyses is to help readers focus on a few important things. We hope such lean communication sparks thinking, and encourages readers to comment and ask questions on the comment section, or email content@trefis.com
2) Figures mentioned are approximate values to help our readers remember the key concepts more intuitively. For precise figures, please refer to our complete analysis for Newmont Mining

 

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