More dividend cuts could be in store at Newmont Mining, Citi analyst says

|About: Newmont Mining Corporation ... (NEM)|By:, SA News Editor

On a day when most gold miners are in the green or at least staying near breakeven, Newmont Mining (NEM -4.3%) has plunged after reporting weaker than expected Q4 earnings and cutting its dividend.

Citigroup’s Brian Yu thinks further cuts in NEM's gold-linked dividend could be on the way; beginning in Q2 2014, payout levels are reduced and based on the updated formula and Citi’s average 2014 gold price forecast of $1,255/oz, dividend payouts for the remaining three quarters of 2014 would decline 83% to $0.075/share from $0.450, enabling NEM to retain an additional $187M in cash.