Tax change is good for NEM

Article Excerpt

NEWMONT MINING $59.99 (New York symbol NEM; Shares outstanding: 483.5 million; Market cap: $29.0 billion; SI Rating: Average; Dividend yield: 0.7%) will benefit from Australia’s ruling Labour Party’s replacement of Prime Minister Kevin Rudd with his deputy, Julia Gillard. The Australian government recently proposed a new 40% tax on onshore resource developments. The tax is unpopular, and Gillard has said that she would be willing to negotiate a new deal with mining companies. Australia will probably hold a general election in October 2010. Australia and New Zealand accounted for 16% of Newmont’s 2009 revenue. Its new Boddington mine in western Australia will soon reach full production, and add to that total. Newmont Mining is a buy. buy…