Newmont rises with gold

Article Excerpt

NEWMONT CORP. $56.02, remains a buy. The company (New York symbol NEM; Shares outstanding: 802.6 million; Market cap: $45.0 billion; TSINetwork Rating: Average; Dividend yield: 1.8%; www.newmont.com) gives investors exposure to the world’s largest gold miner now that Newmont has acquired Vancouver-based Goldcorp Inc. for $10 billion in cash and shares. Despite the COVID-19 pandemic, mines representing 90% of Newmont’s expected 2020 production continue to operate. The company also continues to streamline its operations in the wake of the Goldcorp purchase: it has now sold $1.4 billion of its less-important assets. In the three months ended March 31, 2020, Newmont produced 1.48 million ounces of gold. Thanks to the addition of Goldcorp, that’s up 20.2% from 1.23 million ounces a year earlier. The pandemic has also helped increase Newmont’s realized gold selling price by 22.4%. The company is now passing on the benefits of higher gold prices to its shareholders. With the June 2020 payment, it will raise its quarterly dividend by a whopping…