Topic: Growth Stocks

The Wall Street Stock Forecaster Hotline – Friday, February 26, 2010

Article Excerpt

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. 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 production cost per…