Newmont Raises $1.3 Billion

Article Excerpt

NEWMONT MINING $49.42 (New York symbol NEM; SI Rating: Average) is one of the largest gold producers in the world with major operations in the United States, Canada, Peru, Australia, Indonesia and Ghana. Newmont expects to produce over 6.3 million ounces of gold this year. Newmont’s Canadian subsidiary Franco-Nevada Corp. has sold 82 million shares to the public. Franco-Nevada will use the $1.3 billion proceeds from the initial public offering to purchase 190 base and precious metals mining royalty interests plus 100 oil and gas royalty properties from Newmont. This will give Newmont $1.3 billion in cash to pay for its recent $1.5 billion purchase of TSX-listed Miramar Mining. It will also let it focus on its core gold mining business. Like most producers, Newmont has moved up lately along with higher gold prices. It’s a buy for aggressive investors who want to hedge against — or bet on — a rise in gold prices. prices…