Why We’re Raising Our Price Estimate For Newmont Mining To $34
We are raising our price estimate for Newmont Mining to $34.04, primarily as a result of an improvement in the outlook for gold prices. Rising macroeconomic uncertainty leading up to and post the UK’s EU referendum has increased the demand for safe haven assets such as precious metals. This has resulted in a sharp increase in the investment demand for gold and the prices of the commodity. Though the long term impact of the referendum is contingent upon how quickly and amicably the UK and the EU recalibrate their geopolitical and trade relationships, uncertainty created as a result of the outcome of the referendum would certainly boost the short term demand for gold. In addition, macroeconomic uncertainty as a result of the outcome of the referendum is likely to preclude an interest rate hike by the Fed anytime soon, providing a further boost to gold prices. We have accordingly revised our realized price and margin forecasts for Newmont Mining’s gold mining divisions, resulting in our new price estimate for the company.
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
- Why The Commencement Of Production At The Merian Mine Will Boost The Fortunes Of Newmont’s South American Gold Mining Operations
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