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Newmont Mining +1% on reports of increased investor pressure for break-up

Jul. 09, 2014 8:43 AM ETNewmont Corporation (NEM) Stock, NGT:CA StockNEMBy: Carl Surran, SA News Editor4 Comments
  • Investors are losing patience with Newmont Mining (NYSE:NEM) after the share price has been cut in half since 2011, urging the miner to either rekindle the aborted deal with Barrick Gold or break itself up, WSJ reports.
  • Investors "are frustrated because they wanted something to happen... [NEM] hasn't communicated the specifics of what they're doing," says USAA portfolio manager Dan Denbow.
  • "What we want is synergies from the Nevada operation," says Chris Mancini of Gabelli Gold Fund, one of NEM's largest investors; he says he has told the company it should merge with Barrick and then spin off the combined Nevada operations.
  • Other analysts say losing scale isn't always the best option, given that it becomes more difficult to raise debt; others say the various scenarios struggle to take into account NEM's troubled Indonesian copper operation.
  • NEM +1% premarket.

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