Gold price boosts Newmont

Article Excerpt

NEWMONT MINING $58.32 (New York symbol NEM; Shares outstanding: 484.7 million; Market cap: $28.2 billion; TSINetwork Rating: Average; Dividend yield: 1.0%; is one of the world’s largest gold miners. Newmont has major mines in the U.S., Australia and Peru. In the three months ended September 30, 2010, Newmont’s revenue rose 26.7%, to a record $2.6 billion from $2.05 billion a year earlier. Before one-time items, earnings per share rose 36.7%, to $1.08 from $0.79. Cash flow per share rose 29.6%, to $2.41 from $1.86. Higher gold prices offset the the negative impact of a stronger Australian dollar, start-up costs at its Boddington gold mine in Australia, higher royalties, and lower production in South America. The stock trades at 15.3 times Newmont’s likely 2011 earnings of $3.80 a share, and 7.4 times its likely cash flow per share of $7.90. Newmont is a buy. buy…

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