Newmont Corporation (NYSE:NEM), with a market capitalization of $31.73B USD according to InvestingPro, has successfully ended a nearly four-month-long strike at its Peñasquito mine in Mexico. The cessation comes after reaching a settlement approved by the Mexican Labor Court with the National Union of Mine, Metal, and Allied Workers. The key terms of the agreement do not include additional profit sharing for 2022 but encompass nearly 60% reimbursement for lost wages since June.
The settlement also includes a separate industry-standard wage increase of 8% for 2023. As an InvestingPro Tip suggests, the workers will receive a bonus if no profit is realized in 2023, which is a likely scenario as the company has not been profitable over the last twelve months.
The Peñasquito mine, a significant producer of gold, zinc, and lead in fiscal year 2022, will require several weeks to restore stable operations. The output from the mine was crucial to the supply of these commodities last year, signaling the importance of returning to full-scale production promptly.
The company is expected to provide more details about production stabilization during its third-quarter results announcement on October 26, 2023. Analysts are projecting an earnings per share (EPS) of $0.47 on $2.9 billion in revenue, indicating an improvement from the previous year's EPS of $0.27. This aligns with an InvestingPro Tip that predicts the company will be profitable this year, despite a declining trend in earnings per share and revenue that has been declining at an accelerating rate.
Newmont's stock currently holds a Moderate Buy consensus rating with a NEM price target of $51.40, suggesting a potential upside of 30.4%. This is slightly below the InvestingPro fair value of $44.48 USD. Despite the company's recent challenges, Newmont has maintained dividend payments for 53 consecutive years, as pointed out by InvestingPro Tips, with a current dividend yield of 4.06%.
For more insights and tips like these, consider exploring the InvestingPro product which includes additional tips. There are nine more tips available for NEM on InvestingPro, accessible at InvestingPro.
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