newmont mining

NEWMONT MINING CORP. $19 (New York symbol NEM; Aggressive Growth Portfolio, Resources sector; Shares outstanding: 529.1 million; Market cap: $10.1 billion; Price-to-sales ratio: 1.2; Dividend yield: 0.6%; TSINetwork Rating: Average; www.newmont.com) is one of the world’s largest gold and copper producers, with major mines in the U.S., Peru, Suriname, Australia, Ghana and Indonesia. In August 2015, Newmont paid $821 million for the Cripple Creek & Victor mine in Colorado. This project will produce 350,000 to 400,000 ounces of gold a year once the company completes the mine’s current expansion in 2016. The Cripple Creek acquisition helped increase Newmont’s gold production by 16.1% in the three months ended September 30, 2015, to 1.34 million ounces from 1.15 million ounces a year earlier. Copper output surged 269.2% on higher ore grades at the Batu Hijau mine in Indonesia....

FORD MOTOR CO., $14.19, New York symbol F, reported lower-than-expected vehicle sales this week. In November 2015, the company sold 187,794 cars and trucks in the U.S., up 0.4% from 187,000 in November 2014. Ford offered fewer incentives to buyers, which is why the latest sales missed the consensus estimate of a 3.2% gain. Truck sales increased 18.3%, helping offset lower demand for cars (down 11.5%) and sport utility vehicles (down 9.6%)....

It’s easier to launch a promising company than to create a successful business. That’s why only a minority of penny stocks ever go on to significant success. And while penny stocks can be a worthwhile addition to the aggressive portion of a diversified portfolio, you should in general only buy them with money you’re willing to lose.

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ISHARES S&P/TSX GLOBAL GOLD INDEX FUND $8.55 (Toronto symbol XGD; buy or sell through brokers; ca.ishares.com) aims to mirror the performance of the S&P/TSX Global Gold Index, which is made up of 38 gold stocks from Canada and around the world. The ETF began trading on March 23, 2001. Its MER is 0.61%. The fund’s top holdings are Goldcorp at 13.6%; Newmont Mining, 11.5%; Barrick Gold, 9.7%; Franco-Nevada Corp., 9.3%; Agnico-Eagle Mines, 7.6%; Randgold Resources (ADR), 7.4%; AngloGold Ashanti (ADR), 4.3%; and Royal Gold, 4.0%.

iShares S&P/TSX Global Gold Index is a hold.
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In 2011, gold shot up to a high of $1,950 U.S. an ounce, and silver reached a peak of $48.48. Gold prices then fell steadily, hitting a low of $1,085 in August 2015 for the first time since mid-2010. The metal now trades at $1,146. Silver also declined to a five-year low of $14.11 an ounce in August 2015. It now trades at $16.05. In the longer term, gold and silver could well regain their 2011 highs. This would simply reflect the vast inflationary expansion in the U.S. money supply since the 2008 financial crisis....

NEWMONT MINING CORP. $16 (New York symbol NEM; Aggressive Growth Portfolio, Resources sector; Shares outstanding: 529.1 million; Market cap: $8.5 billion; Price-to-sales ratio: 1.1; Dividend yield: 0.6%; TSINetwork Rating: Average; www.newmont.com) has purchased the Cripple Creek & Victor gold mine in Colorado for $820 million. 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. The company feels it can cut Cripple Creek’s operating costs by 10%. However, like most gold firms, Newmont’s shares will need a gold-price recovery to move significantly higher. Newmont is still a hold.

NEWMONT MINING CORP. $16 (New York symbol NEM; Aggressive Growth Portfolio, Resources sector; Shares outstanding: 529.1 million; Market cap: $8.5 billion; Price-to-sales ratio: 1.1; Dividend yield: 0.6%; TSINetwork Rating: Average; www.newmont.com) has purchased the Cripple Creek & Victor gold mine in Colorado for $820 million.

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. The company feels it can cut Cripple Creek’s operating costs by 10%. However, like most gold firms, Newmont’s shares will need a gold-price recovery to move significantly higher.

Newmont is still a hold.

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NEWMONT MINING $22.52 (New York symbol NEM; Shares outstanding: 529.0 million; Market cap: $11.9 billion; TSINetwork Rating: Average; Dividend yield: 0.4%; www.newmont.com) is buying the Cripple Creek & Victor gold mine in Colorado from AngloGold Ashanti (New York symbol AU) for $820 million.

Cripple Creek will produce 350,000 to 400,000 ounces of gold a year once it finishes an expansion in 2016. To put that in context, Newmont expects to produce 4.6 million to 4.9 million ounces this year. 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. Newmont also recently agreed to sell its Waihi gold mine in New Zealand for $101 million.

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NEWMONT MINING $22.52 (New York symbol NEM; Shares outstanding: 529.0 million; Market cap: $11.9 billion; TSINetwork Rating: Average; Dividend yield: 0.4%; www.newmont.com) is buying the Cripple Creek & Victor gold mine in Colorado from AngloGold Ashanti (New York symbol AU) for $820 million. Cripple Creek will produce 350,000 to 400,000 ounces of gold a year once it finishes an expansion in 2016. To put that in context, Newmont expects to produce 4.6 million to 4.9 million ounces this year. 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. Newmont also recently agreed to sell its Waihi gold mine in New Zealand for $101 million....

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