Newmont shares fell 8% since March as rising costs and flat output kept the miner from benefiting from gold's rally to $2,400. The Alpha Score of 64 reflects the operational headwinds.
Alpha Score of 82 reflects strong overall profile with strong momentum, strong value, strong quality, moderate sentiment.
Newmont shares have fallen 8% since March. Gold prices rallied to $2,400 an ounce over the same period, a new high. The divergence reflects a risk flagged in that earlier article: the miner's costs are rising faster than the metal's price can compensate.
The company's all-in sustaining costs hit about $1,400 an ounce in 2024 guidance, up from $1,200 two years earlier. That leaves a margin of roughly $1,000 at current gold prices. Two years ago the margin was $1,200. The compression is the reason the stock has lagged.
Newmont's output has been flat to declining at its core assets, including the Boddington and Peñasquito mines. Higher gold prices only help so much when the ounces are not growing. The stock now trades at about 15 times forward earnings, a discount to gold mining peers. The multiple suggests the market sees the cost and production problems as structural.
Newmont carries an Alpha Score of 64 out of 100, a Moderate rating from AlphaScala. The score captures the tension between a strong gold backdrop and the operational headwinds that have held back the stock. See the NEM stock page and the gold profile for more.
A sustained move above $2,500 in gold would widen the margin. That depends on the Fed's rate path and the dollar's direction. Newmont is due to report second-quarter results in late July. The cost guidance for the second half will indicate whether the pressure from rising costs is easing.
Prepared with AlphaScala editorial tooling from the source reporting linked above. Indexable analysis may include a cited Alpha Score value. Publishing checks screen each story before release. Educational coverage, not personalized advice.