Following a 14% drop in the previous session on its poor Q3 results, Newmont (NEM, Financial) added to 1% in losses on Friday. Key causes of the poor performance identified by analysts include labor, diesel, and other running expenses exceeding expectations.
From Sector Outperform, Scotiabank downgraded Newmont to Sector Perform and lowered its price target from $59 to $55. Analyst Tanya Jakusconek listed persistent challenges including concern about the company's capacity to keep growing expenses under control until 2025 and beyond. Jakusconek also raised questions on the mid-to long-term performance of Newmont's tier 1 portfolio, implying it might deviate from the recommendations provided in February.
Scotiabank says that the lack of clarity on the integration and advancement of numerous properties acquired from Newcrest Mining adds to the concern. Until more data is given, most likely in 2025, the company anticipates these elements to keep influencing Newmont shares. It's imperative to gauge that the stock is up 26.4% in the past six months, coming in ahead of the 15% gain in the S&P 500.
