S&P downgrades Newmont Mining (NEM) to negative from stable "following a sharp correction in...


S&P downgrades Newmont Mining (NEM) to negative from stable "following a sharp correction in gold prices given the heightened potential for leverage to exceed the maximum 2.5x EBITDA threshold that we view as supportive of the current rating, particularly if the lower price is sustained and production costs and capital spending are not reduced. The price drop also highlights the inherent volatility in precious metals prices."

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Comments (3)
  • chuck lewis
    , contributor
    Comments (436) | Send Message
     
    Editor The Lewis Letter
    S&P has been very wrong before and will be again. Let them read yesterday's Barron's that predicted a 40% rise in Newmont's stock. In my model portfolio to stay with its current 5.25% dividend yield.
    23 Apr 2013, 08:45 PM Reply Like
  • gdlammey
    , contributor
    Comments (36) | Send Message
     
    I agree Newmont is undervalued, but remember the dividend is computed off the avg price of gold - the yield is more like 2-2.5% at current gold prices.
    23 Apr 2013, 09:26 PM Reply Like
  • jumpnjoey77
    , contributor
    Comments (1195) | Send Message
     
    They tied the dividend rate to the price of gold and when they cut the dividend this stox is going to fall.
    23 Apr 2013, 10:12 PM Reply Like
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