Topic: Growth Stocks

Wall Street Stock Forecaster Hotline – Friday, June 12, 2015

Article Excerpt

NEWMONT MINING CORP., $23.55, New York symbol NEM, is buying the Cripple Creek & Victor gold mine in Colorado from AngloGold Ashanti (New York symbol AU). The company will pay $820 million, which is equal to 7% of its $11.8-billion market cap (or the value of all outstanding shares). Newmont expects to complete the purchase in the third quarter of 2015. Cripple Creek will produce 350,000 to 400,000 ounces of gold a year once it completes its current expansion in 2016. To put that in context, Newmont expects to produce 4.6 million to 4.9 million ounces in 2015. The mine should last until at least 2026. To help pay for Cripple Creek, the company will sell 29.0 million common shares for a total of $682 million. That will increase the total number of shares outstanding by 6%. Newmont also recently agreed to sell its Waihi gold mine in New Zealand for $101 million. The company feels it can cut Cripple Creek’s operating costs by…