newmont mining
Newmont Corporation is an American gold mining company based in Denver, Colorado. It is the world’s largest gold mining corporation. Incorporated in 1921, it holds ownership of gold mines in the United States, Canada, Mexico, the Dominican Republic, Australia, Ghana, Argentina, Peru, and Suriname.
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NEWMONT MINING CORP. $24 (New York symbol NEM; Aggressive Growth Portfolio, Resources sector; Shares outstanding: 498.8 million; Market cap: $11.9 billion; Price-to-sales ratio: 1.7; Dividend yield: 0.4%; TSINetwork Rating: Average; www.newmont.com) has started work on its 75%-owned Merian gold project in Suriname; the Suriname government owns the remaining 25%.
The company will spend $600 million to $700 million on Merian. The new mine will supply 7% to 10% of Newmont’s total gold production when it starts up in 2017.
The stock has jumped 36% from its December 2014 low of $17.60. That’s mainly because gold prices have strengthened in response to fears of deflation in Europe. However, the higher U.S. dollar will continue to weigh on gold.
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The company will spend $600 million to $700 million on Merian. The new mine will supply 7% to 10% of Newmont’s total gold production when it starts up in 2017.
The stock has jumped 36% from its December 2014 low of $17.60. That’s mainly because gold prices have strengthened in response to fears of deflation in Europe. However, the higher U.S. dollar will continue to weigh on gold.
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ISHARES S&P/TSX GLOBAL GOLD INDEX FUND $8.06 (Toronto symbol XGD; buy or sell through brokers; ca.ishares.com) aims to mirror the performance of the S&P/TSX Global Gold Index.
This index is made up of 40 gold stocks from Canada and around the world. The iShares S&P/TSX Global Gold Index Fund’s MER is 0.61%. It began trading on March 23, 2001.
The fund’s top holdings are Goldcorp at 16.2%; Barrick Gold, 14.7%; Newmont Mining, 9.9%; Franco Nevada, 7.8%; Randgold Resources (ADR), 5.7%; Agnico-Eagle Mines, 5.3%; Eldorado Gold, 4.2%; Royal Gold, 4.0%; Yamana Gold, 3.7%; and AngloGold Ashanti (ADR), 3.5%.
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This index is made up of 40 gold stocks from Canada and around the world. The iShares S&P/TSX Global Gold Index Fund’s MER is 0.61%. It began trading on March 23, 2001.
The fund’s top holdings are Goldcorp at 16.2%; Barrick Gold, 14.7%; Newmont Mining, 9.9%; Franco Nevada, 7.8%; Randgold Resources (ADR), 5.7%; Agnico-Eagle Mines, 5.3%; Eldorado Gold, 4.2%; Royal Gold, 4.0%; Yamana Gold, 3.7%; and AngloGold Ashanti (ADR), 3.5%.
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Central Fund of Canada, $12.69, symbol CEF.A on Toronto (Shares outstanding: 254.4 million; Market cap: $3.7 billion; www.centralfund.com), is a closed-end mutual fund that holds gold and silver bullion. It now holds 57.4% of its assets in gold bullion, 41.9% in silver bullion and 0.7% in cash.
Central Fund trades at a 10.9% discount to the per-unit value of the assets it holds. It has a 0.32% MER, and the units yield 0.09%.
If you want to buy gold or silver, we recommend staying away from gold or silver bullion, coins (unless you collect them as a hobby) or certificates representing an interest in bullion. That’s because commodity investments like gold and silver bullion do not generate income. Instead, they come with a continuing cash drain for management, insurance, storage and so on. You either pay these costs directly or through a premium built into the price of, say, a futures contract.
That’s why we recommend that you invest in gold through gold- or silver-mining stocks. Unlike bullion, these stocks at least have the potential to generate income. However, Central Fund of Canada is a relatively low-cost and liquid way to hold physical gold and silver, and the 10.9% discount to its net asset value also adds appeal.
If you want to invest in gold and silver bullion, Central is okay to hold.
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Central Fund trades at a 10.9% discount to the per-unit value of the assets it holds. It has a 0.32% MER, and the units yield 0.09%.
If you want to buy gold or silver, we recommend staying away from gold or silver bullion, coins (unless you collect them as a hobby) or certificates representing an interest in bullion. That’s because commodity investments like gold and silver bullion do not generate income. Instead, they come with a continuing cash drain for management, insurance, storage and so on. You either pay these costs directly or through a premium built into the price of, say, a futures contract.
That’s why we recommend that you invest in gold through gold- or silver-mining stocks. Unlike bullion, these stocks at least have the potential to generate income. However, Central Fund of Canada is a relatively low-cost and liquid way to hold physical gold and silver, and the 10.9% discount to its net asset value also adds appeal.
If you want to invest in gold and silver bullion, Central is okay to hold.
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In 2011, gold hit a high of $1,950 U.S. an ounce and silver hit a high of $48.48. But the price of gold has fallen since then and recently dropped below $1,200 for the first time since mid-2010. It now trades at $1,141. Silver has dropped, as well, and at $15.35 an ounce is also trading at lows not seen since mid-2010. Over the longer term, gold and silver could well regain their 2011 highs. This will simply reflect the vast expansion in the U.S. money supply that has taken place since the financial crisis struck in 2008....
NEWMONT MINING CORP. $23 (New York symbol NEM; Aggressive Growth Portfolio, Resources sector; Shares outstanding: 498.8 million; Market cap: $11.5 billion; Price-to-sales ratio: 1.5; Dividend yield: 0.4%; TSINetwork Rating: Average; www.newmont.com) has sold its 44% stake in a joint venture that owns the La Herradura gold mine in northern Mexico. The company received $450 million for its stake. Including this sale, Newmont has now raised $1.3 billion by selling less important assets in the past year. That frees up cash for more promising projects, such as its Merian gold mine in Suriname, which will cost $1 billion and should open in late 2016. Merian’s reserves should last 11 years. Newmont is a hold....
NEWMONT MINING CORP. $23 (New York symbol NEM; Aggressive Growth Portfolio, Resources sector; Shares outstanding: 498.8 million; Market cap: $11.5 billion; Price-to-sales ratio: 1.5; Dividend yield: 0.4%; TSINetwork Rating: Average; www.newmont.com) has sold its 44% stake in a joint venture that owns the La Herradura gold mine in northern Mexico.
The company received $450 million for its stake. Including this sale, Newmont has now raised $1.3 billion by selling less important assets in the past year. That frees up cash for more promising projects, such as its Merian gold mine in Suriname, which will cost $1 billion and should open in late 2016. Merian’s reserves should last 11 years.
Newmont is a hold.
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The company received $450 million for its stake. Including this sale, Newmont has now raised $1.3 billion by selling less important assets in the past year. That frees up cash for more promising projects, such as its Merian gold mine in Suriname, which will cost $1 billion and should open in late 2016. Merian’s reserves should last 11 years.
Newmont is a hold.
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NEWMONT MINING $26.31 (New York symbol NEM; Shares outstanding: 498.8 million; Market cap: $13.3 billion; TSINetwork Rating: Average; Dividend yield: 0.4%; www.newmont.com) recently shut down its 48.5%-owned Batu Hijau copper/gold mine in Indonesia.
The move was in response to the Indonesian government’s ban on raw material exports, which is aimed at pushing miners to process more ore in the country.
Newmont has now agreed to develop a new smelter with Freeport-McMoRan Inc. (New York symbol FCX), which also operates a copper mine in Indonesia. In addition, Batu Hijau has signed new deals to supply copper to two Indonesian companies that plan to build their own smelters. These developments should let Batu Hijau comply with the new regulations. The mine will probably reopen in the next few weeks.
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The move was in response to the Indonesian government’s ban on raw material exports, which is aimed at pushing miners to process more ore in the country.
Newmont has now agreed to develop a new smelter with Freeport-McMoRan Inc. (New York symbol FCX), which also operates a copper mine in Indonesia. In addition, Batu Hijau has signed new deals to supply copper to two Indonesian companies that plan to build their own smelters. These developments should let Batu Hijau comply with the new regulations. The mine will probably reopen in the next few weeks.
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NEWMONT MINING $26.31 (New York symbol NEM; Shares outstanding: 498.8 million; Market cap: $13.3 billion; TSINetwork Rating: Average; Dividend yield: 0.4%; www.newmont.com) recently shut down its 48.5%-owned Batu Hijau copper/gold mine in Indonesia. The move was in response to the Indonesian government’s ban on raw material exports, which is aimed at pushing miners to process more ore in the country. Newmont has now agreed to develop a new smelter with Freeport-McMoRan Inc. (New York symbol FCX), which also operates a copper mine in Indonesia. In addition, Batu Hijau has signed new deals to supply copper to two Indonesian companies that plan to build their own smelters. These developments should let Batu Hijau comply with the new regulations. The mine will probably reopen in the next few weeks....
TIM HORTONS INC., $80.44, New York symbol THI, jumped 27% this week after agreeing to a friendly takeover offer from Miami-based Burger King Worldwide (New York symbol BKW). The combined firm would be the world’s third-largest fast-food operator, after McDonald’s and Yum Brands, with annual sales of $23 billion U.S. and 18,000 restaurants in over 100 countries. Canada will supply 67% of the merged company’s revenue, followed by the U.S. (20%) and other countries (13%). The Tim Hortons and Burger King chains will operate independently but will probably share some back office and distribution networks. Tim Hortons can also use Burger King’s expertise to expand in the U.S. and other countries....
NEWMONT MINING has completed the sale of its Jundee gold mine in Australia for $91 million.