Latest news with #NEM
Yahoo
4 days ago
- Business
- Yahoo
Here's Why Newmont Corporation (NEM) is a Strong Value Stock
It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Many investors also have a go-to methodology that helps guide their buy and sell decisions. One way to find winning stocks based on your preferred way of investing is to use the Zacks Style Scores, which are indicators that rate stocks based on three widely-followed investing types: value, growth, and momentum. Different than growth or momentum investors, value-focused investors are all about finding good stocks at good prices, and discovering which companies are trading under what their true value is before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to help pick out the most attractive and discounted stocks. Colorado-based Newmont Corporation is one of the world's largest producers of gold with several active mines in Nevada, Peru, Australia and Ghana. As of Dec 31, 2024, Newmont had gold mineral reserves of 134.1 million ounces. Its attributable gold production for 2024 was around 6.8 million ounces. NEM is a Zacks Rank #2 (Buy) stock, with a Value Style Score of B and VGM Score of A. Shares are currently trading at a forward P/E of 13.9X for the current fiscal year compared to the Mining - Gold industry's P/E 13.4X. Additionally, NEM has a PEG Ratio of 1 and a Price/Cash Flow ratio of 9.9X. Value investors should also note NEM's Price/Sales ratio of 3.3X. Value investors don't just pay attention to a company's valuation ratios; positive earnings play a crucial role, analysts revised their earnings estimate upwards in the last 60 days for fiscal 2025. The Zacks Consensus Estimate has increased $0.46 to $4.18. NEM has an average earnings surprise of 32.4%. Investors should take the time to consider NEM for their portfolios due to its solid Zacks Ranks, notable earnings and valuation metrics, and impressive Value and VGM Style Scores. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Newmont Corporation (NEM) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Globe and Mail
13-06-2025
- Business
- Globe and Mail
AEM's Solid FCF Places It on Firm Footing: Can It Fuel Future Growth?
Agnico Eagle Mines Limited AEM generated solid first-quarter free cash flow of $594 million, marking an impressive 50% increase from $396 million a year ago. The surge was backed by the strength in gold prices, disciplined capital spending and strong operational results. Notably, free cash flow before working capital adjustments reached $759 million, nearly double the amount from the prior year. The strong free cash flow supports investments in growth initiatives, including Canadian Malartic's underground expansion, Hope Bay and Detour Lake, as well as debt repayments and shareholder returns. AEM's strong liquidity position and substantial cash flows allow it to maintain a strong exploration budget and fund a strong pipeline of growth projects. It remains focused on paying down debt using excess cash, with net debt reducing by $212 million sequentially to just $5 million at the end of the first quarter. AEM also returned around $920 million to its shareholders through dividends and repurchases last year and $251 million in the first quarter. Agnico Eagle's robust free cash flow generation places it firmly in the upper tier of gold producers. This allows the company to pivot these funds into high-return growth initiatives, enhance returns and further accelerate debt reduction as the year progresses. Among its peers, Newmont Corporation NEM achieved a record first-quarter free cash flow of $1.2 billion, marking a significant turnaround from a negative $74 million in the same period a year ago. This substantial improvement came on the back of Newmont's enhanced operational efficiency and the strength of its Tier 1 portfolio. However, Newmont flagged several headwinds likely to impact second-quarter free cash flow, including the impact of non-core asset divestitures, which reduce cash-generating capacity, and a spike in tax payments due to increased profitability in earlier quarters and taxes from divestments. Barrick Mining Corporation B logged a free cash flow of $375 million for the first quarter, a nearly 12-fold year-over-year rise. The surge reflects Barrick's higher operating cash flows driven by an uptick in realized gold and copper prices. Barrick reduced net debt by 5% during the quarter, leveraging healthy free cash flow generation. The Zacks Rundown for AEM Agnico Eagle's shares have shot up 56.1% year to date against the Zacks Mining – Gold industry's rise of 49.7%, largely driven by the gold price rally. From a valuation standpoint, AEM is currently trading at a forward 12-month earnings multiple of 20.18, a roughly 50% premium to the industry average of 13.46X. It carries a Value Score of C. Image Source: Zacks Investment Research The Zacks Consensus Estimate for AEM's 2025 and 2026 earnings implies a year-over-year rise of 42.6% and 0.8%, respectively. The EPS estimates for 2025 and 2026 have been trending higher over the past 60 days. AEM stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. 7 Best Stocks for the Next 30 Days Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops." Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.5% per year. So be sure to give these hand picked 7 your immediate attention. See them now >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Newmont Corporation (NEM): Free Stock Analysis Report Agnico Eagle Mines Limited (AEM): Free Stock Analysis Report Barrick Mining Corporation (B): Free Stock Analysis Report
Yahoo
13-06-2025
- Business
- Yahoo
California's war on rooftop solar: A new bill could dim homeowners' energy freedom
California has long been a leader in solar adoption in the U.S., but a new bill gutting the state's net metering policy would deal a sharp blow to solar homeowners in the Golden state. With the help of favorable government policies and incentives spurring the expansion of solar deployment, California became a solar-friendly state for homeowners looking to save money while living more sustainably. But now, the state is poised to renege on its commitment to solar customers with the potential passage of Assembly Bill 942, a bill that would repeal net metering rules that had previously grandfathered in homeowners who had already gone solar years earlier. This May, the California State Assembly Commission passed an amended bill, known as AB 942, that proposes to sunset existing net metering contracts beginning in July 2026. Net metering is a policy that allows homeowners to send the excess electricity produced by their solar panels back to the grid and receive a credit for that energy on their utility bill. This practice is designed to return excess output to the grid, which in turn benefits local economies and reduces homeowners energy bills. Stay informed on the latest industry news—delivered to your inbox each month. Sign up for EnergySage's newsletter. All told, NEM programs have proved wildly successful at spurring solar adoption, with over 2 million households installing solar panels —, totaling 17 gigawatts. According to one industry study from a solar and storage trade group, those installations have produced $1.5 billion in cumulative savings for all customers. Net metering was first made available to Californians 30 years ago, and in subsequent years and revisions to the program, the state uncapped net energy metering (NEM) to allow new systems to produce more than a previously mandated limit of 1,000kW. While some of the other benefits of NEM were rolled back over the past few years, the program still greatly benefited solar homeowners. If AB 942 passes it will be a different story: Existing net metering contracts (under NEM versions 1.0 and 2.0) would be voided once a home is sold or its deed is transferred. That home and its system would then be regulated under the most recent version, NEM 3.0. According to the bill's author, Assemblyperson Lisa Calderon, AB 942's purpose is to address the financial shortfall of grid maintenance costs that are being covered largely by non-solar customers. 'Our energy bills are becoming increasingly unaffordable, and we must address this ratepayer inequity,' Calderon said in a recent press release. The environmental imperative of renewable energy aside, a key motivation for homeowners who want to go solar is to save course, lower utility bills piques anyone's interest, and is one of the reasons reason net metering has become so popular in one state after the next – it helps homeowners conserve energy and money at the same time. But according to critics, California had already strayed from its original mission. With the introduction of NEM 3.0 in April 2023, California swapped out net metering for a net billing tariff program (aka net billing), an arguably inferior system that substantially reduces the credits customers receive for sending excess energy to the grid, averaging about 5 to 6 cents per kilowatt hour. This is because the energy offsets are now valued based on the avoided costs to the utility company. In previous versions of NEM, the credits' value was equal to those deducted whenever energy had to be imported from the grid; a simple 1:1 exchange rate. Should AB 942 become law, homebuyers would be unable to inherit the benefits of existing contracts under NEM 1.0 or 2.0. (Under these versions, net metering contracts have a 20-year term and are tied to the installations, not homeowners.) Instead, those contracts would automatically shift to NEM 3.0. 'People made huge financial decisions to put solar on their roofs, with guaranteed paybacks because of these agreements,' Jeremy Nicholson, CEO of Sunergy, a California-based solar installer, told EnergySage. 'Changing that midstream would be a huge disservice. It completely erodes consumer confidence. Whatever agreements you have in place, you need to ride out to the finish line.' A key feature of those older agreements is the guarantee that one homeowner can pass savings onto the next. That alone is a huge selling point for buyers in a state like California where electricity rates seem to increase exponentially. Assemblyperson Calderon, a democrat representing California's predominantly suburban 56th State Assembly district, claims AB 942 is a question of economic equity. Her office cites a recent study conducted by the state's Public Advocates Office, which claims that in 2024 alone net metering shifted excess costs totaling $8.5 billion to non-solar ratepayers. 'Without modifications, the cost shift will continue to escalate as retail rates for electricity increase,' according to the study. It's also worth noting that Calderon herself is a former long-time employee of Southern California Edison, a large investor-owned utility and understands how they operate. While it is true that electricity rates in California are well above the national average—30 cents/kWh versus 19 cents nationally—the data for these figures comes directly from the utility companies themselves—an obvious conflict of interest. Other reports found different results: A 2021 counter study conducted by Solar United Neighbors denies the claim that cost shifting is hurting regular Californians. 'The utility's cost shift claim is false,' the Solar United report says 'Research on the issue concludes that rooftop solar more often provides a net benefit to all ratepayers.' 'Utility companies are forced monopolies, and what they're trying to do is get rid of the competition,' Nicholson says. 'An apt analogy is the U.S. Post Office versus FedEx, it's utility companies versus solar. We are the industry disruptor. And even with that competition, even with all the solar in California, rates have gone up over 50% in the last seven years.' Large utilities have made the case that increased rates are needed to help offset the costs of upgrading the U.S.'s aging electrical grid. But that,too, has been called into question, given that transmission and distribution spending on the part of California's three largest utilities has increased exponentially in recent years while electricity usage has remained relatively steady. The conclusion many critics have drawn is that, as investor-owned businesses, the utilities are motivated more by profit margins and keeping shareholders happy than providing value to their customers. 'The claim here is people who went solar are placing an undue burden on the rest of consumers, but that's not a fluid argument,' Nicholson told EnergySage. 'It may have held water if consumption remained the same across the nation and across utilities, but demand has only increased … people say you can't see the future, but I disagree. Solar takes strain off the grid and gives resiliency to customers. It's not even an ROI or cost-saving argument anymore. This is insurance.'
Globe and Mail
12-06-2025
- Business
- Globe and Mail
Newmont's Soaring Unit Costs Warrant Caution: Can It Protect Margins?
Newmont Corporation 's NEM first-quarter 2025 results show concerning increases in unit costs. Its gold costs applicable to sales rose 16% year over year to $1,227 per ounce. All-in sustaining costs (AISC) — the most important cost metric of miners — were $1,651 per ounce for the same period, reflecting a roughly 13% sequential and 15% year-over-year increase. The rise was attributed to a decline in production due to non-core asset divestments as Newmont shifts its focus to Tier 1 assets. Newmont expects gold AISC for the total portfolio to be $1,630 per ounce in 2025, reflecting a rise from $1,516 per ounce in 2024. The impacts of increased direct operating costs are leading to cost inflation. Higher materials, labor and contract services costs, despite somewhat easing lately, remain a concern. The company, in particular, is stung by higher labor costs, which constitute about half of its direct costs. For the second quarter, NEM sees unit costs to be similar to or modestly higher than the first quarter due to higher sustaining capital spending. Sustaining capital is expected to peak in the second quarter due to the ramp-up of planned investments. Higher production costs warrant caution, as they will likely weigh on NEM's profitability. This calls for prudent cost management to maintain competitiveness and sustain margins. Among its major peers, Barrick Mining Corporation B also faced cost pressure in the March quarter. Barrick saw a 22% sequential increase in AISC, reaching $1,775 per ounce. This upside was influenced by operational challenges, higher total cash costs per ounce and an uptick in minesite sustaining capital expenditures. Lower production, partly due to the suspension of operations at Barrick's Loulo-Gounkoto mine, also contributed to the rise. For 2025, Barrick projects AISC in the range of $1,460-$1,560 per ounce, indicating a year-over-year increase at the midpoint. Agnico Eagle Mines Limited 's AEM AISC declined 0.6% in the first quarter due to the deferral of certain sustaining capital expenditures. However, Agnico Eagle projects the same to increase in the remainder of 2025. Agnico Eagle forecasts total cash costs per ounce in the range of $915 to $965 and AISC per ounce between $1,250 and $1,300 for 2025, suggesting a year-over-year increase at the midpoint of the respective ranges. The Zacks Rundown for NEM Newmont's shares have shot up 43.2% year to date against the Zacks Mining – Gold industry's rise of 48.1%, largely driven by the gold price rally. Image Source: Zacks Investment Research From a valuation standpoint, NEM is currently trading at a forward 12-month earnings multiple of 12.12, a roughly 9.6% discount to the industry average of 13.4X. It carries a Value Score of A. The Zacks Consensus Estimate for NEM's 2025 and 2026 earnings implies a year-over-year rise of 20.1% and 11.7%, respectively. The EPS estimates for 2025 and 2026 have been trending higher over the past 60 days. NEM stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. 5 Stocks Set to Double Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%. Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor. Today, See These 5 Potential Home Runs >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Newmont Corporation (NEM): Free Stock Analysis Report Agnico Eagle Mines Limited (AEM): Free Stock Analysis Report Barrick Mining Corporation (B): Free Stock Analysis Report
Yahoo
11-06-2025
- Business
- Yahoo
Amazon MGM Talks $1B Slate And Says 'We Are Heavily Invested In Theatrical' & 'We're Not Holding Any Content Back'
Amazon MGM Studios Distribution said it will bring a $1B slate to market in 2026 and, unlike in the earlier days of original films and TV headed to streaming, it is not holding anything back. 'Coming up in 2026 we will be releasing 20 movies, 10 of which will be theatrical and the budget for that whole slate in 2026 will be one billion dollars – and we'll be committing a P&A spend of one billion to that,' said George Wilkinson, International TV Distribution Manager, Amazon MGM Studios Distribution, at the ongoing NEM market and conference in Dubrovnik. More from Deadline 'Steven Universe' Sequel In The Works At Prime Video Kate Siegel, Michael Trucco, Katee Sackhoff, Rahul Kohli, Tim Bagley & Heather Graham Among New Additions To Amazon's 'Carrie' TV Series The MPA's Emilie Anthonis Warns Of B2B Pirates & The Threat Of 'Piracy As A Service' 'What does that mean? It means we are heavily invested in theatrical,' Wilkinson continued as part of a showcase of Amazon MGM wares, and speaking to a room of buyers and TV folk. 'It also means that all of our partners in this room, we will be distributing that content to them. We're not holding any content back from the market from that slate.' Amazon MGM's Wilkinson and his colleague Paloma Roldan went on to talk through the 2025 slate including Red One, A Working Man and The Accountant 2, as well as upcoming features for later in the year including Heads Of State, The Pickup and Play Dirty. Looking ahead to 2026, Amazon MGM talked about movies including sci-fi adventure Project Hail Mary with Ryan Gosling and described by Roldan as 'the star of our slate', as well heist drama Crime 101, and Masters of the Universe. The Amazon MGM team also ran the rule over the TV series slate, including the new season of The Lord Of The Rings: The Rings Of Power. Two seasons are available for distribution and the third is coming — and coming to market. Wilkinson reminded the audience this is 'the most expensive TV series ever made in the history of time' at $60M per episode. On the TV side, Amazon MGM Studios' distribution team also highlighted the Citadel franchise and Daniel Dae Kim's spy thriller Butterfly. Best of Deadline 2025 TV Series Renewals: Photo Gallery List Of Hollywood & Media Layoffs From Paramount To Warner Bros Discovery To CNN & More Sean 'Diddy' Combs Sex-Trafficking Trial Updates: Cassie Ventura's Testimony, $10M Hotel Settlement, Drugs, Violence, & The Feds
