This miner also profits from rising prices

Article Excerpt

NEWMONT MINING CORP. $58 (New York symbol NEM; WSSF Rating: Average) earned $0.47 a share from continuing operations in the three months ended March 31, 2006, up sharply from $0.19 a year earlier. If you disregard a one-time tax benefit, Newmont would have earned $0.36 a share in the latest quarter. Revenue rose 21.7%, to $1.15 billion from $945 million, as gold prices rose 31%. Newmont will probably sell between 6.1 million ounces and 6.25 million ounces of gold in 2006, down from an earlier forecast of 6.26 million, mostly due to geologic instability at its mine in Indonesia. However, rising gold prices should more than make up for any loss in revenue. Higher gold prices will also offset rising operating costs. Newmont’s cost per ounce is likely to rise from $236 in 2005 to between $280 and $295 this year. The stock trades at a high 39.7 times its likely 2006 profit of $1.46 a share. Gold enthusiasts routinely pay multiples…

You are trying to access subscriber-only content.

To read this article, you may subscribe or sign in.
If you are already a subscriber, log in here.

If you wish to become a subscriber, click here. Or you may enjoy access to all our publications when you become a Member of Pat McKeough's Inner Circle Pro.