This post was originally published on this site
Canaccord Genuity upgraded Newmont Mining Corp. (NYSE:NEM) to Buy from Hold and raised its price target to $55 from $53 following the company’s reported Q4/22 earnings last month, updated guidance, and reserve and resources.
Overall, the firm viewed the quarterly results and updated guidance as in line to slightly positive, despite 2022 overall being a challenging year for Newmont with production coming in at the low end of guidance and costs above the high end.
As anticipated, the company also reset its dividend framework to $1.60 per share annualized (down from $2.20 per share), which represents approximately 45% of 2023E sustaining FCF and a 3.6% yield.
According to the firm, Newmont provides investors with a steady gold production profile centered on geopolitically stable jurisdictions, with a deep project pipeline, strong balance sheet and FCF generation, and a proven operating team. Furthermore, the firm views the potential acquisition of Newcrest Mining (OTC:NCMGF) as making strategic sense.
