NEM CEO Speaks on BNN TodayNEM CEO was just interviewed on Canada's BNN (Business News Network). The audio was a bit distorted but here's what I managed to hear:
CEO Says NEM is fully committed to meeting 2024 commitments and sees NEM share price at a "Generational Low".
Says as NEM disposes of non-core assets, tightens up the balance sheet, and continues with the restructuring, NEM share price will move up.
Says the same thing occurred when they bought out Goldcorp and they overcome those challenges and says they will do the same following the Newcrest acquisition. He sees their current share price as undervalued and a "Generatonal Low" buying opportunity!
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According to the BNN interviewer, analysts are taking a wait and see attitude toward NEM meeting their 2024 guidance, non-core asset disposals, etc. My view is, we clearly need a catalyst to turn the cautious / negative sentiment around on this stock. Announcing an asset sale(s) soon would be a good start. The Fed commencing with the lowering of rates would also help (but that doesn't appear likely until H2 2024). The good news is with NEM trading near a 12 month forward PE of 11 times, this stock is now so cheap that anyone buying and holding this from these levels will be well rewarded. Also, NEM policy is to adjust their dividend payment in accordance with profit so the current lowering of the dividend is likely temorary and could possibly be increased in 2025 and beyond if they can deliver on their 2024 guidance and restructuing objectives.
The markets these days seem to have a shoot first and ask questions later approach. I see the NEM share price beat down as similar to what occurred to TRP - TC Energy last year when TC Energy announced splitting off / restructuring their business model and investors headed for the exits. TRP went from about $55 CAD to $44 CAD in a blink and a few month later when the market came to its senses the stock recovered to its pre-sell off levels and is near that price today while paying a dividend of over 7%! Those who bought TRP at $44 CAD have done exceptionally well and I see a similar opportunity here as NEM executes its plan in 2024 and beyond.
My opinion only, please DYODD.
HB77