Look Beyond Oil For Resource Growth

Article Excerpt

We feel investors should diversify their resource sector holdings with non-oil stocks such as gold miner Newmont and forest products producer Weyerhaeuser. Both are leaders in their respective fields, and their large size makes it easier for them to endure commodity price swings NEWMONT MINING CORP. $51 (New York symbol NEM; Aggressive Growth Portfolio, Resources sector; Shares outstanding: 434.7 million; Market cap: $22.2 billion; WSSF Rating: Average) is one of the world’s largest producers of gold. It also mines copper, silver and zinc. Newmont aims to increase its exposure to gold. Its Canadian subsidiary Franco-Nevada Corp. recently sold shares to the public, and used the proceeds to pay Newmont $1.3 billion in cash for certain mining and oil and gas royalty assets. Newmont will use the cash to fund its $1.5 billion acquisition of Canadian gold mining company Miramar Mining Corp. Miramar’s Hope Bay Project in northern Canada is one of the largest undeveloped gold deposits in North America. Newmont’s earnings from continuing operations…