Newmont Corporation (NYSE:NEM) shares plummeted around 13% on Monday following the company’s reported Q2 results, with EPS of $0.46 coming in worse than the Street estimate of $0.68, impacted by higher operating costs, provisional pricing headwinds, and Penasquito profit sharing expenses. Revenue was $3.06 billion, compared to the Street estimate of $3.15 billion.
The company's free cash flow outlook has materially weakened over 2022-2024 as compared to prior expectations, and financial flexibility is now viewed as below average.
The analysts at RBC Capital believe it is reasonable to expect the company’s dividend policy to change later in 2022 to allow for greater latitude at current/lower gold prices. The analysts lowered their price target to $60 from $77, while reiterating their Sector Perform rating.