Published on 27 Jul 2022 on Benzinga via Yahoo Finance
Gold Mining Company Newmont Selloff 'Overdone' After Q2 Results, This Analyst Says While Upgrading ...
Canaccord Genuity has upgraded Newmont Corporation (NYSE: NEM) to Buy from Hold, lowering the target price to $60 from $66 following the company's Q2 FY22 results.The analysts say that the 13% drop in NEM's share price yesterday was overdone with the EPS miss, including some abnormal items, such as the $70 million profit-sharing agreement at Penasquito relating to 2021, the timing of gold sales, and $105 million in negative provisional pricing adjustments.Newmont produced 1.5 million attributable ounces of gold and 330,000 attributable gold equivalent ounces from co-products, an increase of more than 130,000 total gold equivalent ounces from Q2 FY21.The company revised the FY22 outlook, expecting 6 million ounces of attributable gold production and 1.3 million gold equivalent ounces from copper, silver, lead, and zinc.The updated outlook for attributable gold production includes negative impacts from operational challenges.Canaccord says the revised gold production guidance was broadly in line with Canaccord's prior forecast with ~2% higher AISC guidance."We view Newmont as offering investors a steady gold production profile centered on geopolitically stable jurisdictions, with a deep project pipeline, strong balance sheet, and solid operating team." the analysts wrote.Price Action: NEM shares are down 0.20% at $46.05 during the market session on the last check Wednesday.
Latest Ratings for NEM