Newmont Mining: a place for those Golden Nest-eggs?

[HollandPark]

CHARTS - added later by DB:

 

Weekly chart ... update-Weekly : Daily-chart

 

EXCERPTS // from The Business //

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VIRTUES

Newmont’s virtues are hardly limited to size and liquidity. It boasts a global portfolio of top-notch properties, management is first-rate and finances are robust. A lot of Newmont’s gold, what’s more, is in politically stable spots. Over a third of its reserves, for example, are in Nevada, while 60% of its gold production comes from developed countries.

 

Chief executive Wayne Murdy sees the gold market’s dynamics pointing to higher prices. Even as demand rises, he says, global supply “is not going to grow in any meaningful way for years”.

 

For four years running, the Denver-based company has discovered more gold than it has mined. And those reserves are concentrated in a handful of key areas that boast huge ore deposits and mines with lives running 16, even 20 years – the kind of world-class properties that are exceedingly rare discoveries these days.

. .

...as Newmont begins this year to bring new production onstream – three large, low-cost mines – margins, which recently have been squeezed, will expand briskly and the stock should follow suit. On that score, in 12 to 18 months, Newmont shares, which currently sell around $53, could easily be fetching $75-$80

 

UPWARD PRESSURE - The Buying opportunity of a Decade?

 

Newmont president Pierre Lassonde, who has been uncannily sharp in forecasting the price of gold, asserts that it will soon begin to climb again. For all of 2006, he sees the metal averaging more than $600 an ounce, and he expects it to test its all-time high of $850 within 18 months.

 

Everything – from the supply-demand picture to this country’s soaring trade imbalance – tells Lassonde that we are at the beginning of a significant bull market in gold. He likens the situation to oil and gas stocks a couple of years ago. "Oil was already trading at $45 a barrel," he recalls, "yet the stocks were selling as if oil would sell at $25-$30 forever.

 

Lassonde’s analogy carries special weight because in 2004, as the executive in charge of Newmont Capital – which manages the company’s investments in other gold companies, as well as in oil, gas, coal, iron ore and gold refining – he bought a 6.6% stake in the Canadian Oil Sands Trust as a long-term way for Newmont to hedge its rising energy costs. Since then, the $200m-plus investment has almost quadrupled.

 

For gold mining stocks, he declares unequivocally: "This is the buying opportunity of a decade."

 

 

 

MORE: http://www.thebusinessonline.com/Stories.a...45-97AC94420FD5

[drbubb]

NEM-to-Gold:

Newmont is now a cheap way to play Gold

 

It is down to near 6% of the price of Gold.

I can recall that it used to trade at 1/10 the price of gold,

and I can see it getting back up to 7% or even 8.5% resistance levels.

[drbubb]

Rumors circulating re NEM buyout (Not rated) 29-Aug-07 12:24 pm huge december call buying was noted monday night on optionmonster. as jay n. said, on takeover speculation you'd expect much shorter term buying. to him it looks like investment paper betting on a fed ease and inflation.

 

when asked the next day about the barrick rumor, he said it was supposed to be 57-60 and he was skeptical because he didn't think barrick couldn't raise 25 billion in this environment.

 

imho, it seems like a case of rumors following the buying instead of the other way around. smart money know this is undervalued, big money hates it, maybe because of how hard it's getting to sit on it.

 

@: http://messages.finance.yahoo.com/Stocks_%...frt=2&off=1

 

= = =

 

Zapata George seems to think that China is buying shares in NEM

[drbubb]

SOME DEALS are still getting done - involving real businesses bought by real companies (not PE)

 

Rio Tinto finalizes term loan to fund Alcan Inc. takeover

 

By Chris Oliver

Last Update: 11:52 PM ET Aug 29, 2007 HONG KONG (MarketWatch)

-- Rio Tinto Ltd [s:rtp] has completed the subunderwriting phase of the $40 billion term loan to fund its $38.1 billion acquisition of Canada's Alcan Inc. [s:al], the company said Thursday in a statement to the Australian Securities Exchange. Rio Tinto said it had little trouble raising the term loan despite recent volatility in the global credit market. It added the term loan was more than one-third oversubscribed. Banks participating in the financing include Royal Bank of Scotland, Deutsche Bank, Credit Suisse and Societe Generale.