newmont mining

iShares S&P/TSX Global Gold Index Fund, $22.72, symbol XGD on Toronto (Shares outstanding: 57.1 million; Market cap: $1.3 billion), aims to replicate 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%. The fund’s top ten holdings are Barrick Gold at 18.2%; Goldcorp., 13.6%; Newmont Mining, 11.5%; AngloGold Ashanti (ADR), 6.3%; Kinross, 5.3%; Agnico-Eagle, 4.1%; Gold Fields (ADR), 3.9%; Eldorado Gold, 3.8%; Lihir Gold (ADR), 3.4%; and Yamana Gold, 3.4%. If you want to own a gold fund, iShares S&P/TSX Global Gold Index Fund is okay to hold....

INTERNATIONAL BUSINESS MACHINES CORP., $131.19, New York symbol IBM, aims to double its earnings to $20 a share by 2015. To achieve this goal, IBM will expand in developing markets like Russia, India, Brazil and China. These countries are attracting more business activity as their economies grow. That’s increasing the need for IBM’s mainframe computers and technical expertise. By 2015, IBM aims to get 25% of its revenue from these markets, up from 19% last year. The company will also continue to spur its growth by purchasing related companies and assets. It will probably spend $20 billion on these purchases through 2015. That’s equal to 12% of its $170.4-billion market cap....

If you want to buy gold, we recommend staying away from buying gold bullion, coins (unless you collect them as a hobby) or certificates representing an interest in bullion. That’s because commodity investments such as gold 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-mining stocks. Unlike bullion, gold-mining stocks at least have the potential to generate income. Newmont Mining, $58.32, symbol NEM on New York (Shares outstanding: 491 million; Market cap: $28.6 billion), is a relatively conservative choice if you want to buy a gold stock....

Gold is currently trading at around $1,183 U.S. an ounce. That’s up 4% from April 19, 2010, when it was trading at around $1,138 U.S. an ounce, but still short of gold’s all-time high of $1,214.80 U.S., which it reached in late 2009. Gold’s recent rise has partly been driven by investor fears about European sovereign debt — Greek debt in particular. These fears are prompting more investors to buy gold and gold investments, because they believe gold will provide them with additional security. ...

NEWMONT MINING $54.09 (New York symbol NEM; Shares outstanding: 483.0 million; Market cap: $26.1 billion; SI Rating: Average; Dividend yield: 0.7%) expects its gold production to rise 5% to 10% this year. Its new Boddington gold mine in Australia, which started operating in July 2009, is the main reason. Boddington’s reserves should last over 24 years. Newmont remains our top choice in gold stocks for safety-conscious investors. That’s because of its high-quality mines and low production costs. As well, most of the company’s production is in politically stable areas, such as North America and Australia. Newmont Mining is a buy.

NEWMONT MINING CORP. $50 (New York symbol NEM; Aggressive Growth Portfolio, Resources sector; Shares outstanding: 491.0 million; Market cap: $24.6 billion; Price-to-sales ratio: 3.3; Dividend yield: 0.8%; WSSF Rating: Average) is one of the world’s largest gold-mining companies. It has major mines in the U.S., Australia and Peru. Gold accounts for about 85% of Newmont’s revenue. The remaining 15% comes from copper, zinc and other metals. Most of Newmont’s copper comes from its 35.4% stake in the large Batu Hijau mining complex in Indonesia. Average gold prices rose 248.4%, from $279 an ounce in 2000 to $972 in 2009. Gold has fallen from the all-time high of $1,214.80 an ounce that it reached in late 2009, and now trades around $1,093....

NEWMONT MINING $51.94 (New York symbol NEM; Shares outstanding: 483.0 million; Market cap: $25.1 billion; SI Rating: Average; Dividend yield: 0.8%) reports that its 2009 earnings jumped 71.6%, to $1.4 billion from $792.0 million in 2008. The company sold common shares to raise funds to buy the one-third of the Boddington gold mine in Australia that it didn’t already own. Because of the extra shares outstanding, per-share earnings rose 60.3%, to $2.79 from $1.74. Cash flow per share rose 45.0%, to $6.45 from $4.45. Revenue rose 25.8%, to $7.7 billion from $6.1 billion. Results rose on higher gold and copper prices. Newmont sold its gold for $977 an ounce in 2009. That’s up 11.8% from $874 in 2008. The company feels that gold prices could rise to $1,350 an ounce this year. Newmont has also done a good job of cutting its production costs. Its unit production cost fell 4% for gold and 54% for copper....

Central Fund of Canada, $14.21, symbol CEF.A on Toronto (Shares outstanding: 213.0 million; Market cap: $3.0 billion) is a closed-end mutual fund that holds gold and silver bullion. It now holds 56.7% of its assets in gold bullion, 40.5% in silver bullion and 2.8% in cash. The fund has an MER of 0.38%. The units yield 0.07%. Central Fund trades at an 8% premium to the per-unit value of the assets it holds. We advise against buying closed-end funds at a premium, so we don’t recommend buying units of Central Fund. A: iShares CDN Gold Sector Index Fund, $20.31, symbol XGD on Toronto (Shares outstanding: 55.4 million; Market cap: $1.1 billion), aims to reflect the performance of the S&P/TSX Global Gold Index, which is made up of Canadian and non-Canadian gold stocks that S&P selects using its industrial classifications and guidelines. The fund holds 34 stocks, and its MER is capped at 0.55%....

NEWMONT MINING CORP, $49.28, New York symbol NEM, rose 2% this week after the company reported 2009 earnings that beat the $2.41 a share that analysts were expecting. Newmont’s 2009 earnings jumped 71.6%, to $1.4 billion from $792.0 million in 2008. The company sold common shares to raise funds to buy the one-third of the Boddington gold mine in Australia that it didn’t already own. Because of the extra shares outstanding, per-share earnings rose 60.3%, to $2.79 from $1.74. Cash flow per share rose 45.0%, to $6.45 from $4.45. Revenue rose 25.8%, to $7.7 billion from $6.1 billion. Higher gold and copper prices were the main reason for the improved results. Newmont sold its gold for an average of $977 an ounce in 2009. That’s up 11.8% from $874 in 2008....

SHORE GOLD $0.89 (Toronto symbol SGF; SI Rating: Start-up) (306-664-2202; www.shoregold.com; Shares outstanding: 224.5 million; Market cap: $199.8 million) released positive results from a prefeasibility study on its 100%-owned Star diamond project and the nearby 60%-held Orion South project in Saskatchewan. Newmont Mining owns the other 40% of Orion South, plus 9.9% of Shore’s common shares. The study projects that a mine would produce 35 million carats of diamonds over 20 years. Shore hopes to finish a feasibility study on the projects by early 2011. Production could begin in the first quarter of 2016. Shore Gold is a buy for highly aggressive investors.