Newmont Mining Corp

While gold miners (GDX) are trying hard to limit their exposure to safe jurisdictions, it’s important to look at their geographic exposure and the implications it could have on their future prospects.

The term “diversified miners” refers to mining companies that are not into streamlined gold or silver mining, but also mine base metals.

Newmont Mining outlined its capital allocation priorities. Management mentioned that they aim to fund their projects through cash generated from core operations.

Barrick Gold (ABX) reported its 3Q15 results on October 28 after market hours and held its conference call the next day. Its results beat market expectations.

In this part of ours series, we’ll explore the trend in Freeport-McMoRan’s unit production costs.

For 2Q15, Newmont has been the most successful YoY in cost cutting. It had a reduction of 14.50%—mainly due to a rise in productivity and efficiency improvements.

Gold miners’ (GDX) production profile is very important for investors. According to the WGC, gold mine production rose by 3% YoY to 786.6 tons in 2Q15.

Barrick Gold’s (ABX) financial leverage is among the highest in the industry. Barrick has a high debt-to-assets ratio of 40%.

In a weaker commodity price environment, a company’s short-term liquidity might come under more pressure. It could be forced to take drastic measures.

Gold prices, as tracked by the SPDR Gold Trust (GLD), have significantly outperformed the VanEck Vectors Gold Miners Index (GDX) since 2008.

The average AISC for eight significant gold miners for 2015, as guided, is $950 per ounce compared to $900 per ounce for 1Q15.

Goldcorp (GG) announced on August 27 that it has bought the remaining 30% stake of El Morro from New Gold (NGD).

Barrick has reduced its 2015 gold production guidance to 6.1 million to 6.4 million ounces from 6.2 million to 6.6 million ounces.

The Peñasquito mine contains gold, silver, lead, and zinc. It achieved its first commercial production in 2010, on schedule and on budget.

Goldcorp announced its 2Q15 results on July 30. The company’s gold production showed very strong growth at 25.3% quarter-over-quarter.

Newmont Mining’s (NEM) attributable gold production for 2Q15 was 1.24 million ounces. This is higher by 0.2 million ounces compared to the same quarter last year.

Newmont Mining (NEM) announced its 2Q15 results on July 22. It reported adjusted EPS of $0.26 and adjusted EBITDA of $692 million.

In its 2Q15 earnings release, Newmont Mining (NEM) reported net income attributable to shareholders of $131 million, or $0.26 per share. This compares to $101 million, or $0.20 per share, in 2Q14.

An interest rate hike by the Fed will lead to pressure on the price of gold. When alternative investments are attractive due to an increase in the interest rate, money flows from gold.

The CC&V mine acquisition will help Newmont achieve a lower-cost profile. The mine’s cost attributable to sales and all-in sustaining costs are lower than Newmont’s current averages.

The Cripple Creek & Victor mine is located near Colorado Springs, Colorado. It’s and open-pit mine that has been operational since 1995.

Newmont Mining is the world’s second-largest gold producer. In this series, we’ll analyze various steps taken by Newmont toward asset optimization.

Investors should be aware of two key events for Newmont Mining (NEM): the go ahead for Long Canyon Phase 1 and the renewal of the contract at Batu Hijau.

Newmont stated during its 4Q14 earnings call that it is analyzing potential opportunities to pay its liabilities in advance.

Analysts’ sales estimate for Newmont is $1.93 billion for 1Q15 compared to $1.80 billion in 4Q14.

Gold is used as an investment alternative because investors perceive it as a way to protect money’s purchasing power.

A declining on-warrant copper inventory means that more metal is being booked for delivery. This is generally associated with stronger demand.

Copper prices have traded largely sideways in April. Copper prices fell sharply in January but have recovered smartly since then. Year-to-date, copper prices are down ~4%.

Newmont Mining is the world’s second largest gold producer. It’s the only gold company included in the S&P 500 Index and Fortune 500.

Copper is also known as “Dr. Copper,” as analysts see the metal’s prices as a reflection of the global economy’s health.

India’s real interest rate has moved up rapidly in the last few months due to declining inflation.

In 2014, inflation expectations were 2.8% to 3.3%. In January 2015, expectations dropped to 2.5%, the lowest since September 2010.

Freeport’s key historical timeline starts more than a century ago when Freeport Sulphur established the city of Freeport, Texas, near its sulphur mine.

The US Consumer Price Index reading for the month of January was -0.1%. This is the first negative US inflation reading since October 2009.

In this series, we’ll look at some gold indicators investors can track to get a sense of what direction the price of gold will take.

Newmont Mining has a strong project pipeline of 16 projects across different stages of development throughout the world.

It’s important to understand GEO or gold equivalent ounces because gold companies like Goldcorp (GG), Barrick Gold (ABX), Newmont Mining (NEM), and Kinross (KGC), measure their production and reserves in different ways. You need to make sure you’re comparing apples to apples.

Gold mining companies like Goldcorp Inc. (GG), Barrick Gold Corp. (ABX), and Newmont Mining Inc. (NEM) report cash costs, total cash costs, total costs, and all-in cash costs. It can be very confusing for investors to understand exactly what’s what here.

In the gold industry, substantial discrepancies exist between the actual costs incurred and the costs reported by the companies. In this part, we’ll discuss different methodologies and how effective they are at representing a company’s true costs.

An inflation hedge is basically an investment that’s expected to increase its value over a specific period of time. Gold might not have a linear relationship with inflation. However, it’s probably better than most of the investment alternatives available. It protects the portfolio against inflation.

Gold is an unusual metal. It exists in the Earth’s crust as an element. It’s not chemically combined with other metals. Silver and copper are the only other metals naturally found in their elemental form.

Investing in gold is complex. It’s challenging because it’s hard to predict gold prices in the future. However, there are many indicators that investors can track. The indicators help to determine the direction that gold prices will take.