newmont mining

Gold and silver continue to rise. Gold is up 30% from a year ago, and is trading at $1,248 U.S. an ounce. Silver is at $19.35 U.S. an ounce, up 38%. Gold and silver could well move higher over the longer term, although they will likely remain volatile. Higher prices would arise from investor fears that low interest rates and governments injecting money into their economies will spur inflation or weaken their currencies. If you want to hold a number of gold or silver stocks, these two exchange-traded funds offer top-quality global miners and low fees....

ISHARES S&P/TSX GLOBAL GOLD INDEX FUND $24.22 (Toronto symbol XGD; buy or sell through brokers) aims to mirror the performance of the S&P/TSX Global Gold Index. This index is made up of gold stocks from Canada and around the world. The weight of any one company is capped at 25% of the index’s market capitalization. The fund’s MER is 0.55%. iShares S&P/TSX Global Gold Index Fund began trading on March 23, 2001. The fund’s top-ten holdings are Barrick Gold at 18.6%; Goldcorp., 13.1%; Newmont Mining, 11.9%; AngloGold Ashanti (ADR), 6.2%; Kinross, 4.7%; Eldorado Gold, 4.2%; Agnico-Eagle, 4.2%; Gold Fields (ADR), 4.1%; Randgold Resources (ADR), 3.3%; and Yamana Gold, 3.1%....

Gold now trades at around $1,226.00 U.S. an ounce. That’s up 28.2% from $956 a year ago, but down from its all-time high of $1,261.00 U.S., where it closed on June 28, 2010. Gold’s recent gains have partly resulted from investor fears about the sovereign debts of European countries, especially Greece and Spain. That’s creating uncertainty about the strength of the euro. These fears are prompting more investors to buy gold and gold investments, because they believe investing in gold will provide them with additional security. We think gold could well move higher over the longer term, due to investor concern that low interest rates and large amounts of government stimulus spending will spur inflation. This could prompt even more investors to flock into gold —and drive prices up even higher....

Dynamic Precious Metals Fund is a mutual fund that mainly invests in mining stocks and other resource companies. The $811.6-million fund focuses on small- to mid-cap stocks. Its MER is 2.75%. The fund holds 95.2% of its portfolio in gold and precious-metals stocks, and 2.9% in metals and minerals stocks. Its top-ten holdings are Osisko Mining, San Gold, Red Back Mining, Aurizon Mines, Agnico-Eagle Mines, Alamos Gold, Kinross Gold, Allied Nevada Gold, Eldorado Gold and Andean Resources. Dynamic Precious Metals Fund holds 85.4% of its portfolio in Canadian stocks, 10.6% in Australia and 4.2% in the U.S....

NEWMONT MINING $59.99 (New York symbol NEM; Shares outstanding: 483.5 million; Market cap: $29.0 billion; SI Rating: Average; Dividend yield: 0.7%) will benefit from Australia’s ruling Labour Party’s replacement of Prime Minister Kevin Rudd with his deputy, Julia Gillard. The Australian government recently proposed a new 40% tax on onshore resource developments. The tax is unpopular, and Gillard has said that she would be willing to negotiate a new deal with mining companies. Australia will probably hold a general election in October 2010. Australia and New Zealand accounted for 16% of Newmont’s 2009 revenue. Its new Boddington mine in western Australia will soon reach full production, and add to that total....

PLEASE NOTE: Our next Hotline will go out on Friday, July 9, 2010. ADOBE SYSTEMS INC., $29.85, Nasdaq symbol ADBE, reported better-than-expected earnings and revenue this week. Despite the improved results, the stock fell 14%. That’s partly because the company is spending more to market new products, such as Creative Suite 5, the latest version of its graphic-design software....

ALIMENTATION COUCHE-TARD INC., $19.22, symbol ATD.B on Toronto, will now direct its takeover offer to shareholders of Casey’s General Stores (symbol CASY on Nasdaq). In April, Couche-Tard directed its offer at Casey’s management and board of directors, hoping to win their approval. However, Casey’s rejected Couche-Tard’s all-cash, $36-a-share bid as inadequate. Casey’s is now trading at $35.66, which is just 0.9% below Couche-Tard’s offer. That suggests investors may not be expecting a significantly higher bid. Couche-Tard also plans to nominate nine candidates to replace Casey’s current board of directors....

ISHARES S&P/TSX GLOBAL GOLD INDEX FUND $22.72 (Toronto symbol XGD; buy or sell through brokers) aims to mirror the performance of the S&P/TSX Global Gold Index. This index is made up of gold stocks from Canada and around the world. The weight of any one company is capped at 25% of the index’s market capitalization. The fund’s MER is 0.55%. iShares S&P/TSX Global Gold Index Fund began trading on March 23, 2001....

If you want to invest in gold and silver, we think the best way to do it is through shares of companies that mine gold and silver. Our favourite gold stock is Newmont Mining (see box this page). But if you want to hold a number of gold or silver stocks, the two exchange-traded funds below offer a good combination of top-quality global miners and low fees. ISHARES S&P/TSX GLOBAL GOLD INDEX FUND $22.72 (Toronto symbol XGD; buy or sell through brokers) aims to mirror the performance of the S&P/TSX Global Gold Index. This index is made up of gold stocks from Canada and around the world. The weight of any one company is capped at 25% of the index’s market capitalization. The fund’s MER is 0.55%....

NEWMONT MINING $55.71 (New York symbol NEM; Shares outstanding: 483.5 million; Market cap: $26.9 billion; SI Rating: Average; Dividend yield: 0.7%) reports that its cash flow per share rose 69.4% in the three months ended March 31, 2010, to $1.83 from $1.08 a year earlier (all figures in U.S. dollars). Revenue rose 46%, to $2.2 billion from $1.5 billion. Results rose on higher gold and copper prices. Newmont sold gold for $1,106 an ounce, up 22.1% from $906. Copper selling prices rose 97%, to $3.33 a pound from $1.69. Gold could well move higher over the longer term, although it will likely remain volatile. Higher gold would arise from investor fears that low interest rates and government stimulus spending will spur inflation. A continuing European debt crisis would just add to gold’s rise....