CPER

Newmont Posts a Stellar Earnings Report, Raises Dividend

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Image Shown: An overview of Newmont Corporation’s recent accomplishments. Image Source: Newmont Corporation – Third Quarter of 2020 IR Earnings Presentation By Callum Turcan Shares of Newmont Corporation (NEM) are included in the Dividend Growth Newsletter portfolio because we view its long-term dividend growth trajectory quite favorably, and the gold miner has not disappointed. At the start of 2020, Newmont significantly increased its quarterly dividend as we covered in this article here. Due to a combination of its enlarged dividend, very promising growth outlook, sizable expected synergies from its 2019 acquisition of Goldcorp, and its stellar cash flow profile, we added shares of NEM as a holding to our Dividend Growth Newsletter portfolio on January 13, 2020 (link here). As … Read more

Our Thoughts on Newmont’s Bright Outlook

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Image Shown: Newmont Corporation’s gold reserves are extensive and should support the gold miner’s ability to generate meaningful cash flows over the years and decades to come. Image Source: Newmont Corporation – August 2020 IR Presentation By Callum Turcan Back on January 13, we added shares of gold miner Newmont Corporation (NEM) as a holding to the Dividend Growth Newsletter portfolio (link here). In July, we significantly increased our fair value estimate for Newmont and please note the top end of our fair value estimate range sits at $72 per share of NEM (Newmont’s 16-page Stock Report can be accessed here). We will cover why we boosted our fair value estimate in just a moment. As of this writing, shares … Read more

Newmont Surges Higher, Posts Solid Earnings Report

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Image Shown: Newmont Corporation’s operational and financial performance has held up well in the face of the pandemic, relatively speaking. Image Source: Newmont Corporation – Second Quarter of 2020 IR Earnings Presentation By Callum Turcan Back on January 13, 2020, we added gold miner Newmont Corporation (NEM) to the Dividend Growth Newsletter portfolio at a modest weighting. Since then, shares of NEM are up ~64% as of this writing on August 6. Please note we significantly increased our fair value estimate for Newmont in July, and the firm’s updated 16-page Stock Report can be viewed here. Part of the reason for the positive revision came from Newmont expecting that it will generate greater synergies than first envisioned when it acquired Goldcorp … Read more

Freeport-McMoRan’s Outlook Improves Considerably

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Image Source: Freeport-McMoRan Inc – February 2020 IR Presentation By Callum Turcan Global copper, gold, and molybdenum miner Freeport-McMoRan Inc (FCX) suspended its quarterly common dividend in March 2020 and provided a revised outlook for the full-year in April 2020 due to the coronavirus (‘COVID-19’) pandemic hampering both commodity prices and its operational performance. One of those hurdles involved the Peruvian government imposing restrictions on its Cerro Verde mine in March 2020 (as part of COVID-19 containment efforts), a copper mine that Freeport-McMoRan owns a ~54% stake in. Another hurdle involved the collapse in commodity prices earlier this year (though gold prices have held up quite well in 2020). First, let us provide some background before highlighting why Freeport-McMoRan’s outlook … Read more

BHP Benefiting from an Industrial Rebound in China

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Image Source: BHP Group – Fiscal 2019 Annual Report By Callum Turcan In recent months, iron ore futures prices have surged higher due to an ongoing recovery in China’s industrial sector and supply concerns in Brazil, which has culminated into the Dalian Commodity Exchange’s September 2020 iron ore deliveries hitting a record high since the futures contract was first launched in 2013. Pivoting to copper, three-month copper futures prices based on trading activity on the London Metals Exchange have also perked up on the back of an apparent recovery in Chinese economic activity. Rising metals prices bodes well for major and minor miners around the globe, including BHP Group (BHP) (BBL). Brief Aside Please note BHP is the ADR for … Read more

Southern Copper’s Payout Is Not That Healthy

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Image Shown: An overview of Southern Copper’s core operations in Mexico and Peru. Image Source: Southern Copper Corporation – May 2019 IR Presentation By Callum Turcan Copper (symbol Cu, atomic number 29) is an essential building block of modern civilization as it is used as a conductor for heat and electricity. Electrical components, utility-scale electrical transmission systems, residential and commercial heating appliances, electric vehicles, and much more all rely on copper products (electromagnets, heat exchangers, heat sinks, integrated circuits, printed circuits, copper wiring, and copper fittings are all examples of products that contain copper). The largest consumer of copper is China, accounting for roughly half of global demand making the Middle Kingdom an essential part of the copper supply chain. … Read more

3 Observations

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Bulls raged back in a big way during the week of trading ending August 28 to erase some of the massive losses experienced from the May 2015 highs of 2,013 on the S&P 500. Though no longer staring down at 1,800, the S&P 500 still closed comfortably shy of 2,000. No matter what next week will bring, almost everybody is expecting more volatility. Could this then mean that we’re back to normal? The market has a very interesting way of disappointing the majority of investors the majority of the time. Here are 3 observations that are worth noting. 1. The Fed Doesn’t Have the Right Data…Yet The stark reality is one of two things: a) either the Fed knows exactly what’s going on … Read more

Here Comes the Correction

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The S&P 500 (SPY) has been stuck in neutral for most of 2015, and we’re not surprised. The forces against a further advance have been mounting for some time. Not only are valuations stretched on some of the strongest business models, but global economic growth remains sluggish, perhaps punctuated by falling gross domestic product in the US during the first quarter of the year. But that is not all that is ailing the global equity markets as of late. Nothing short of a 1929 US-equivalent stock-market crash in China (FXI) is currently ensuing, and the government is doing all that it can to prop up the markets to ensure stability. The Shanghai Shenzhen 300 Index has fallen an incredible 30% … Read more

BHP or Rio Tinto? Is That the Right Question?

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Dr. Copper is speaking, and we don’t like what he’s saying. For those long-tenured market participants, a look at the copper markets (JJC, CPER, CUPM) generally provides insight into the health of the global economy. Copper is used in just about everything related to construction and manufacturing, and the price of the metal signals the relationship between its supply and demand. A strong copper price, therefore, indicates that demand for the metal is healthy, and that in most cases and by extension, the general economy is healthy as well. What we are witnessing in the copper markets, however, is something else, and on a high level, no different than the shellacking the crude oil markets have been experiencing in recent … Read more

South32 Is a Great Miner

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Image Shown: An overview of South32’s global asset base. We are big fans of the Australian miner. Image Source: South32 – Fiscal 2021 IR Earnings Presentation By Callum Turcan Back in 2015, the mining giant BHP Group Ltd (BHP) spun off South32 (SOUHY). Since then, South32 has seen some major changes to its asset base through a combination of acquisitions, divestments, and organic investments. We include shares of South32’s American depository receipts (‘ADRs’) as an idea in the new ESG Newsletter portfolio (more on that here). Each ADR represents five ordinary shares of South32. South32 is based in Perth, Australia, and we’re huge fans of its pristine balance sheet, stellar free cash flow generating abilities, top-notch asset base, and bright … Read more