Profit sharing

Newmont (NEM) signs profit sharing agreement with Penasquito Union

Newmont Company NEM has signed a profit sharing agreement with its workforce represented at its Penasquito mine in Zacatecas, Mexico. The agreement supports the continued operation of Penasquito into the future.

Newmont Penasquito will pay its represented workforce an uncapped profit-sharing bonus of up to 10% consistent with other agreements across Mexico with an immediate cost equivalent to $70 million, which marks results-related payments of 2021.

Newmont said that through respectful dialogue and the active participation of union leaders, he reached this agreement without disruption to the operation, ensuring a lasting relationship for the future of Penasquito.

Newmont shares are down 6.2% over the past year, compared to an industry drop of 23.1%.

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In its latest earnings call, Newmont said it expects attributable gold production of 6.2 million ounces for 2022. The company also expects gold CAS to be $820 per ounce and AISC of $1,050 per ounce.

Newmont’s guidance reflects increased gold production, continued investment in its operating assets and brighter growth prospects. It includes current development capital costs and production related to Tanami Expansion 2, Ahafo North, Yanacocha Suldes, Pamour in Porcupine and Cerro Negro District Expansion 1.

Newmont Corporation Pricing and Consensus

Newmont Corporation Pricing and Consensus

Newmont Corporation Price Consensus Chart | Quote from Newmont Corporation

Zacks ranking and key picks

Newmont currently carries a Zacks Rank #3 (Hold).

Some top-ranked stocks in the base materials space are Allegheny Technologies Inc. ATI, Cabot Corporation TCC and Nutrien Ltd. NTR.

Allegheny forecasts a profit growth rate of 1,076.9% for the current year. The Zacks consensus estimate for ATI’s earnings for the current year has been revised up 40.4% in the past 60 days.

Allegheny’s earnings have exceeded Zacks’ consensus estimate for the past four quarters. It has a surprise on earnings for the last four quarters of about 128.9% on average. ATI has gained about 0.7% in one year and currently sports a Zacks rank of No. 1 (Strong Buy). You can see the full list of today’s Zacks #1 Rank stocks here.

Cabot, which currently sports a No. 1 Zacks rank, has an expected earnings growth rate of 22.5% for the current year. The Zacks consensus estimate for CBT earnings for the current year has been revised up 6% in the past 60 days.

Cabot’s earnings have exceeded the Zacks consensus estimate in each of the past four quarters, averaging 16.2%. CBT gained about 8.6% year on year.

Nutrien forecasts a profit growth rate of 174.6% for the current year. The Zacks consensus estimate for NTR’s current-year earnings has been revised up 30.7% in the past 60 days.

Nutrien’s earnings have exceeded the Zacks consensus estimate in three of the past four quarters, averaging 5.8%. NTR gained 25.6% in one year. The company carries a Zacks Rank #2 (Buy).

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