- Newmont Mining (NEM +2.5%) is upgraded to Overweight from Equal Weight at Barclays, despite fears of a Fed rate hike that have driven gold prices lower.
- The firm says it remains comfortable with its forecast for $1,350/oz. gold over 2017 as investors move past their immediate focus on the U.S. election and the next Fed move to consider what it sees as a continued high-risk, low growth global economy.
- Barclays thus believes NEM shares look increasingly attractive ahead of potentially favorable company-specific events; over the next several months, it looks for NEM to complete the sale of Batu Hijau, recalibrate and increase its dividend payout, and affirm development of its promising expansions in Ghana.
- The firm also likes OceanaGold (OTCPK:OCANF +2.4%), which has been hit by political risks in the Philippines, and thinks the miner will reaffirm its operations in the country and begin the ramp up of its key Haile project, its first in the U.S.