Newmont Mining (NEM) Stock Retreating on Lower Gold Prices

Newmont Mining (NEM) stock is down Monday afternoon, reflecting the drop in gold prices.
By Natalie Walters ,

NEW YORK (TheStreet) -- Shares of Newmont Mining (NEM) - Get Report are down 2.90% to $40.08 in late-afternoon trading on Monday, as lower gold prices weigh on some mining companies. 

Gold for December delivery is down 0.56% to $1,324.10 per ounce on the COMEX this afternoon. 

The drop in the price of gold is a result of a stronger dollar and concerns that the FED will hike interest rates sometime this year, reports MarketWatch. The FED will meet on Wednesday to construct a policy statement. 

"Investors will be interested to see what the central bank says about the Brexit vote and depending on its assessment, they should get a better handle on the Fed's next rate move," Edward Meir, consultant at INTL FCStone, said in a note. 

The precious metal is non-interest paying and has difficulty competing with assets that bear a yield when interest rates are raised.

Newmont is a Greenwood Village, CO-based mining company focused on the production of and exploration for gold and copper.

Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:

We rate NEWMONT MINING CORP as a Hold with a ratings score of C+. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity and feeble growth in the company's earnings per share.

You can view the full analysis from the report here: NEM

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