Gold futures for December delivery were down 0.55% to $1,133.50 an ounce on the Comex on Wednesday afternoon.
Gold prices were falling due to rebounding stocks and concerns about a possible U.S. rate hike ahead of the release of non-farm payroll data on Friday, according to Reuters. U.S. and European stocks rebounded Wednesday as concerns over volatility in Chinese stock markets eased, according to the news service.
The Federal Reserve may decide the likelihood of a U.S. rate hike after the release of the August U.S. non-farm payroll on Friday, according to Reuters. A rate hike could hurt gold prices as the precious metal performs better in low-interest rate environments.
"We have to wait until we actually see the payrolls numbers this Friday," Capital Economics analyst Simona Gambarini told Reuters. "We don't really expect much movement in the gold price (ahead of that). Investors are just waiting on the sidelines to see what the Fed will decide."
Newmont Mining is a gold producer with active mines in the U.S., Indonesia, Australia, New Zealand, Ghana, and Peru.
TheStreet Ratings team rates NEWMONT MINING CORP as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:
"We rate NEWMONT MINING CORP (NEM) a HOLD. 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, reasonable valuation levels and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself and unimpressive growth in net income."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The revenue growth greatly exceeded the industry average of 27.2%. Since the same quarter one year prior, revenues slightly increased by 8.1%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- Despite currently having a low debt-to-equity ratio of 0.57, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further. Despite the fact that NEM's debt-to-equity ratio is mixed in its results, the company's quick ratio of 1.69 is high and demonstrates strong liquidity.
- The change in net income from the same quarter one year ago has exceeded that of the Metals & Mining industry average, but is less than that of the S&P 500. The net income has significantly decreased by 60.0% when compared to the same quarter one year ago, falling from $180.00 million to $72.00 million.
- Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 37.03%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 64.86% compared to the year-earlier quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
- You can view the full analysis from the report here: NEM Ratings Report