Newmont: Following the Gleam (and the Drop)

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Ah, Newmont Corporation [NEM 5.10%]. A company that, like most things in this world, goes up and down. Frustrating for those who expect a straight line, perhaps, but predictable if you understand the fundamental laws of shiny things. It’s a simple equation, really: when the price of gold dances upwards, so too does Newmont’s stock. When it sulks downwards… well, you get the picture. Today, the gold is distinctly lacking in joie de vivre, and Newmont is following suit, down a respectable 5.5% as of this morning. It’s enough to make a dwarf weep into his ale, but a seasoned dividend hunter merely raises an eyebrow.

The Erratic Behaviour of Precious Metals

Gold, you see, isn’t just a metal; it’s a story. A story of empires, of greed, and of people desperately trying to turn something pretty into something useful. It recently reached a dizzying peak of $5,419.80 per ounce on January 28th – a price that, frankly, felt a bit… ambitious. Then, as these things often do, it tumbled, falling to around $4,500 in early February. It’s bounced around since, like a goblin with a particularly energetic spring, settling today at $4,860. It’s enough to give one a headache, trying to follow it.1

Newmont also dabbles in silver, which is… complicated. Silver, unlike gold, seems to have a personality. It peaked on the 28th at $116.58, then plummeted to $66, before attempting a comeback, hitting around $80. It’s as if the metal is deliberately teasing us. However, unlike gold, silver hasn’t managed a full recovery, remaining stubbornly below that magical $80 mark. Today, it sits at $72.70. It’s almost as if the metal has decided it’s had enough of being valuable.

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A Question of Value (and Dividends)

So, what does this all mean for Newmont stock? Well, we’ll find out on Thursday when they reveal their Q4 earnings. Analysts predict a modest $2.02 per share for the quarter, and $6.46 for the year. At today’s $119 share price, that gives us a price-to-earnings ratio of 18.4. Not bad, not bad at all. And, more importantly, analysts predict a 32% annual growth in earnings over the next five years.2

Now, a lower share price and potential growth? That, my friends, is what a dividend hunter looks for. It’s not about chasing the highest peaks, but finding solid ground where value can accumulate. Newmont isn’t promising instant riches, but a steady stream of returns for those patient enough to hold on. It’s a bit like tending a garden: you don’t expect a giant pumpkin overnight, but with consistent care, you’ll be rewarded with a bountiful harvest. Invest accordingly, and remember: shiny things are nice, but a consistent yield is even better.

1 The fluctuations, of course, are due to a complex interplay of factors, including global economic uncertainty, geopolitical tensions, and the whims of fashion. Also, leprechauns. Don’t discount the leprechauns.

2 Predictions, naturally, are subject to change. The future, as they say, is notoriously difficult to predict, especially if you’re a gnome trying to forecast the weather.

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2026-02-17 18:42