Mon, Apr. 13, 7:00 AM
- AngloGold Ashanti (NYSE:AU) is entering second-round talks with Newmont Mining (NYSE:NEM) and Kinross Gold (NYSE:KGC) for its Cripple Creek & Victor mine in the U.S., FT reports.
- Iamgold (NYSE:IAG) and Goldcorp (NYSE:GG) have also expressed interest for part or all of Cripple Creek.
- AngloGold says the sale is part of an "objective to simplify and improve the overall quality of its portfolio." It could also raise up to $1B and help the South African group cut its debt after a plan for a rights issue failed last year.
- AU -1.4% premarket
Fri, Apr. 10, 12:43 PM
- Another proxy advisory firm is telling Barrick Gold (ABX +1.7%) shareholders to vote against Chairman John Thornton’s $13M 2014 pay package.
- ISS, North America's biggest proxy advisory firm, says Thornton’s 36% pay rise was unwarranted in a year when ABX’s share price share price lost over a third of its value and underperformed its peers.
- Advisory firm Glass Lewis also has recommended against ABX’s "excessive" executive compensation.
- Thornton’s pay is larger than that of his peers: Last year, Newmont Mining (NEM +0.8%), the world’s second largest gold miner behind ABX based on production, paid its non-executive chairman, Vincent Calarco, $572K.
Wed, Apr. 8, 6:28 PM
- Newmont Mining (NYSE:NEM) says it will move ahead with the first phase of development at its Long Canyon gold mine in Nevada, less than 100 miles from the miner's existing operations in the state.
- The first phase consists of an open pit mine and heap leach operation with expected gold production of 100K-150K oz./year over an eight year mine life at an estimated all-in sustaining cost of $500-$600/oz.
- NEM says the phased approach will allow it to cut Long Canyon's development capital to $250M-$300M, generate an internal rate of return of ~17% at current gold prices, and reduce the payback period to slightly more than four years after first commercial production, which is expected in H1 2017.
Mon, Apr. 6, 9:55 AM
- Barrick Gold (ABX +3.5%) is open to asset sales and joint ventures as it tries to cut $3B from its $10B-plus debt and rebuild its reputation with investors, John Thornton tells Financial Times in his first interview since taking over as Chairman nearly a year ago.
- Thornton says he can imagine ABX ceding operational control of some assets, for example to Mick Davis, the former Xstrata CEO who plans to re-enter the mining sector at the head of a P-E firm.
- Sales of two gold mines, Cowal in Australia and Porgera in Papua New Guinea, are well advanced, Thornton says, although those sales would only meet part of the $3B target; however, there are no plans to try to revive a merger with Newmont Mining (NEM +1.5%) after talked failed a year ago.
Wed, Mar. 18, 12:56 PM
- Indonesia extends for six months Newmont Mining's (NEM -0.2%) Indonesian copper export permit after the company gave assurances over its commitment to build a smelter with Freeport McMoRan (FCX -0.3%).
- The government had indicated earlier that NEM's copper export permit would not be renewed beyond March 19 unless it struck a deal with FCX, but the mining ministry has set NEM's export quota at 477K metric tons until Sept. 19.
Thu, Mar. 12, 3:19 PM
- Newmont Mining (NEM +0.7%) earns some praise from Credit Suisse, which raises its stock price target to $24 from $21 following NEM's strong 2014 and improved visibility for the 2015-17 outlook and project pipeline.
- Credit Suisse likes NEM's improving balance sheet which includes an $830M Y/Y reduction in net debt, better operational performance as 2014 costs and production both came in better than expectations, and some exploration success including at Tanami, Merian and Long Canyon.
- However, the firm maintains its Neutral rating due to valuation on an operating cash flow basis and the pending resolution of the Indonesia CoW negotiation and potential smelter funding.
Fri, Mar. 6, 2:42 PM
- Precious metals miners are bludgeoned as April Comex gold tumbles 2.7% to $1,164.30/oz. for its lowest settlement of the year so far.
- The culprit was the upbeat February jobs report, which sparked fears that the improving economy will prompt the Fed to hike interest rates sooner rather than later.
- ABX -6%, GG -6.6%, NEM -7.9%, AU -6.1%, AUY -6.6%, KGC -7.8%, SLW -3.4%, GOLD -5.4%, EGO -5%, GFI -7.9%, HL -10.4%, RGLD -8.6%, FNV -3.2%, NG -4.3%, SBGL -6.4%, PAAS -4.3%,BTG -6.5%, IAG -6.2%, AUQ -5.6%, AGI -2.8%.
- Precious metals ETFs: GLD, SLV, AGQ, IAU, USLV, SIVR, SGOL, ZSL, UGL, DGP, GLL, UGLD, DZZ, SLVO, GLDI, DSLV, OUNZ, DGL, DBS, GLTR, DGZ, DGLD, AGOL, DBP, WITE, TBAR, USV, UBG, JJP, BAR, GYEN, GEUR, BARS, RGRP, BLNG
- Precious metals mining ETFs: GDX, NUGT, DUST, SIL, GLDX, SLVP, RING, SGDM, PSAU, GDXX
Mon, Mar. 2, 10:34 AM
- Newmont Mining's (NEM -0.3%) Indonesian copper export permit will not be renewed beyond March 19 unless it strikes a deal with Freeport McMoRan (NYSE:FCX) to invest in the latter's planned smelter, a mines ministry official says.
- NEM has said multiple studies show its Batu Hijau mine cannot sustain a smelter on its own, while fellow U.S.-based miner FCX is pushing ahead with expansion plans at Indonesia's sole copper smelter at Gresik.
- After a nine-month export tax dispute, NEM signed a deal with the government late last year that allowed for the resumption of copper concentrate exports, but the agreement is set to end unless NEM can show it is serious about domestic processing.
Fri, Feb. 20, 3:24 PM
- Investors are pleasantly surprised by Newmont Mining's (NEM +5.2%) stronger than expected Q4 earnings amid a drop in all-in sustaining costs, sending shares more than 5% higher.
- J.P. Morgan analysts call NEM's quarter a “good set of results with well controlled costs," and they surmise cost savings could get even better thanks to the strong dollar and cheap oil; they say a $0.05 lower Australian could improve free cash flow by $60M, and a $10/bbl reduction could save $30M on an un-hedged basis and offer savings after the current hedges expire.
Thu, Feb. 19, 5:28 PM
- Newmont Mining (NYSE:NEM) +1.4% AH following better than expected Q4 earnings and revenues.
- Q4 attributable gold production totaled 1.26M oz., 13% below the 1.45M oz. in the prior-year quarter, due mainly to the impact of divestments; full-year output was 4.85M oz., less than 5.07M oz. produced in 2013.
- Q4 all-in sustaining costs were $927/oz. of gold, the second consecutive sub-$1K quarter; full-year all-in sustaining costs were $1,002, a 10% improvement vs. 2013.
- Q4 copper production rose 33% to 28.7K metric tons.
- NEM sees 2015 gold production roughly flat 4.6M-4.9M oz., with all-in sustaining costs of $960-$1,020/oz., with output rising to 4.7M-5.1M oz. by 2017.
- NEM forecasts 2015 copper production of 130K-160K metric tons, leveling out to 115K-135K tons in 2016 and 2017.
Thu, Feb. 19, 4:11 PM
Wed, Feb. 18, 5:35 PM
Tue, Feb. 17, 6:09 AM
Tue, Feb. 10, 9:14 AM
- Newmont Mining (NYSE:NEM) should produce 25% more copper and gold concentrate in 2015, an Indonesian mining ministry official says, after a nine-month export stoppage hit the miner's production in 2014.
- NEM is seen producing 500K metric tons of copper and gold concentrate in 2015 "at most," up from 400K in 2014, Indonesia's coal and minerals director general tells Reuters.
- The government is reviewing NEM's export permit based on a pact it signed last year with Freeport McMoRan, the official says.
Mon, Feb. 9, 6:24 PM
- As North American senior gold producers prepare to report year-end earnings, Citigroup is upbeat on the group even as it predicts gold prices will fall in 2015 to $1,239/oz. before climbing back somewhat in 2016 and 2017, as the firm believes reductions in operating and capital spending should position most to generate positive free cash.
- Weaker forex should drive down cash cost guidance, Citi says, estimating that Newmont Mining (NYSE:NEM) will benefit the most with their Australian dollar exposure only 18% hedged and pushing costs down by ~$24/oz.; Kinross Gold (NYSE:KGC) follows with $20/oz. savings from the ruble.
- On the diesel fuel side, Citi thinks benefits seem evenly matched at $11-$13/oz. for Barrick Gold (NYSE:ABX), NEM and KGC.
Fri, Feb. 6, 7:46 AM
- Newmont Mining (NYSE:NEM) says it has resumed gold and copper production at its Boddington mine in Western Australia state after a wildfire blazing out of control nearby disrupted power supplies.
- NEM says power supply to the plant at Boddington was restored after several days of disruptions, and the processing mills are now operating at 90% of their rated capacity.
- Boddington is one of Australia's largest gold mines, and produces ~700K troy oz. of gold and 68M lbs. of copper a year.
NEM vs. ETF Alternatives
Newmont Mining Corp is engaged in the production of and exploration for gold and copper. It is also engaged in the production of copper, mainly through its Batu Hijau operation in Indonesia and Boddington operation in Australia.
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