- Newmont Mining (NEM -0.9%) is downgraded to Hold from Buy at Argus based on NEM's weak Q4 earnings and recent dividend cut, and expectations for a continued decline in gold prices in 2014.
- The firm projects a full-year average gold price of $1,376/oz. - reflecting strength in the U.S. dollar, reduced retail investment in gold ETFs and increased gold shorting - and expects gold prices to fall faster than NEM's overall production costs.
- As such, the firm cuts its 2014 EPS estimate for NEM to $0.85 from $1.68 and sets a 2015 estimate of $1.02, still well below the company's average annual earnings in 2008-12.