Newmont Mining Corporation (NYSE:NEM) has suspended operations at the Ahafo gold mine in Ghana following a tragic accident that claimed the lives of six employees.
Methanex Corporation (MEOH): Free Stock Analysis Report
Kronos Worldwide Inc (KRO): Free Stock Analysis Report
LyondellBasell Industries N.V. (LYB): Free Stock Analysis Report
Newmont Mining Corporation (NEM): Free Stock Analysis Report
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Zacks Investment Research
The roof of the Ahafo Mill Expansion ("AME") project tunnel collapsed while a contractor crew of eight people was working inside. Though the company was prompt in responding, six people lost their lives.
The company notified the concerned authorities about the incident and is extending all possible help to the police. The company has decided to suspend the AME project and will resume operations at the project only after satisfactory safety measures have been ensured.
Newmont’s shares have gained 13.5% over a year, outperforming the industry’s 10.5% decline.
Newmont continues to invest in growth projects in a calculated manner. It is pursuing a number of projects including Subika Underground and Ahafo mill expansion in Africa and Twin Underground in North America.
In fourth-quarter 2017, Newmont successfully started commercial production at its Tanami expansion project in Australia, which is expected to improve gold production at the mine. The Subika Underground and Ahafo mill expansion projects represent additional upside. Commercial production at Subika is expected in the second half of 2018 while the same for the Ahafo expansion is expected in the second half of 2019. Commercial production from the Twin Underground expansion is also expected in mid-2018.
Newmont also remains committed to reduce debt and improve efficiency. Newmont reduced its net debt to $0.8 billion at the end of 2017. Since 2013, the company has been streamlining its balance sheet and has lowered its net debt by more than 83%.
However, rising production cost is a concern for the company. Newmont’s all-in sustaining costs (AISC) rose 5% to $968 in last reported quarter, mainly due to higher per unit cost applicable to sales, higher exploration costs and increased sustaining capital. Increased project spending is expected to keep AISC at elevated levels.
Newmont Mining Corporation Price and Consensus
Zacks Rank & Stocks to Consider
Newmont currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the basic materials space include Kronos Worldwide Inc. (NYSE:KRO) , Methanex Corporation (NASDAQ:MEOH) and LyondellBasell Industries N.V. (NYSE:LYB) .
Kronos has an expected long-term earnings growth rate of 5% and sports a Zacks Rank #1 (Strong Buy). The company’s shares have moved up 37.3% in a year. You can see the complete list of today’s Zacks #1 Rank stocks here.
Methanex has an expected long-term earnings growth rate of 15% and flaunts a Zacks Rank #1. Its shares have gained 29.1% over a year.
LyondellBasell has an expected long-term earnings growth rate of 9% and carries a Zacks Rank #2 (Buy). Its shares have moved up 13.9% in a year.
Zacks Editor-in-Chief Goes "All In" on This Stock
Full disclosure, Kevin Matras now has more of his own money in one particular stock than in any other. He believes in its short-term profit potential and also in its prospects to more than double by 2019. Today he reveals and explains his surprising move in a new Special Report.
Methanex Corporation (MEOH): Free Stock Analysis Report
Kronos Worldwide Inc (KRO): Free Stock Analysis Report
LyondellBasell Industries N.V. (LYB): Free Stock Analysis Report
Newmont Mining Corporation (NEM): Free Stock Analysis Report
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Zacks Investment Research
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