Newmont Mining
There has been a bull market in gold and other commodities this past year. Gold has roared up to $600 an ounce this past year and is expected to keep rising. When you think of gold, the stock that comes to mind is Newmont Mining (NEM). It is a big company with a market cap over $23 billion and is one of the only pure-play gold stocks in the S&P 500 or the Fortune 500. They also have a global prtfolio of top-notch properties, first-rate management and robust finances. 60% of its gold production comes from developed countries. This company has discovered more gold than it has mined for four years straight. These reserves are expected to last 16-20 years. They hold 32.4 million acres in prime gold districts. Over the past 5 years, gold has risen 122%, and NEM has risen 186% with it. When gold rises NEM follows. However, over this past year, gold has been up 14% and NEM is down 2%. This failure to outperform could prove to be an opportunity for investors as NEM begins to bring major new production onstream, 3 new, low cost mines. NEM expects to sell 6.1 million to 6.25 milllion ounces of gold, with expenses around $280-$295 an ounce. These costs are expected to shrink by 2008 when low cost production from 5 major new projects kick in. Production in 2008 will rise and by 2009, they could see 2.5 million ounces of new gold, replacing the 1 million ounces that will be lost from aging mines, especially Yanacocha in Peru. All in all, it is a good time to buy gold and a good time to buy Newmont Mines (NEM).
posted by Stock Administrator @ 1:38 PM
Newmont Mining
There has been a bull market in gold and other commodities this past year. Gold has roared up to $600 an ounce this past year and is expected to keep rising. When you think of gold, the stock that comes to mind is Newmont Mining (NEM). It is a big company with a market cap over $23 billion and is one of the only pure-play gold stocks in the S&P 500 or the Fortune 500. They also have a global prtfolio of top-notch properties, first-rate management and robust finances. 60% of its gold production comes from developed countries. This company has discovered more gold than it has mined for four years straight. These reserves are expected to last 16-20 years. They hold 32.4 million acres in prime gold districts. Over the past 5 years, gold has risen 122%, and NEM has risen 186% with it. When gold rises NEM follows. However, over this past year, gold has been up 14% and NEM is down 2%. This failure to outperform could prove to be an opportunity for investors as NEM begins to bring major new production onstream, 3 new, low cost mines. NEM expects to sell 6.1 million to 6.25 milllion ounces of gold, with expenses around $280-$295 an ounce. These costs are expected to shrink by 2008 when low cost production from 5 major new projects kick in. Production in 2008 will rise and by 2009, they could see 2.5 million ounces of new gold, replacing the 1 million ounces that will be lost from aging mines, especially Yanacocha in Peru. All in all, it is a good time to buy gold and a good time to buy Newmont Mines (NEM).
posted by Stock Administrator @ 1:38 PM
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