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Old 03-07-2012, 10:09 AM   #1
Yellow Jacket
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Newmont Mining (NEM)

Starting a new thread on NEM to collect news over time.

Quote :
Peru sees OK for big Newmont mine, details to come
Peru insists its biggest mining project to date, Newmont Gold's $4.8 billion Conga gold and copper project, will go ahead, although the final shape and form has yet to be decided.
Mine and Energy Minister Jorge Merino said the government, which has appointed a 3-person commission to review a favorable environmental impact study, was looking at ways to improve the project. Conga is set to produce up to 350,000 ounces of gold per year and 120 million pounds of copper its first five years of operation.
"The Peruvian state respects contracts that have been signed," Merino told Reuters during the Prospectors and Developers Association of Canada (PDAC) conference, the world's largest mining industry gathering.
An environmental impact study gave Newmont the green light for Conga in 2010. But authorities halted construction in November after violent protests by groups who fear it would pollute water sources. A government appointed panel is now reviewing the original study.
"What we are doing here is an analysis of how we can improve the environmental impact study, how we can improve on the issue of water," Merino said.
"It's the 'how' it will be done and the 'how' it will be improved," he answered when asked whether there will eventually be a Conga Mine.
The protests have forced the government of President Ollanta Humala to walk a fine line between respecting community demands and backing the pro-business line that helped get him elected.
Peru is the world's No. 2 producer of copper, silver and zinc and is Latin America's top gold producer. Mining accounts for 60 percent of exports, and a decade-long mining boom has brought economic and political stability.
But the sector faces growing criticism for failing to bring sufficient prosperity to communities, and critics say it pollutes their environment and wastes their water supplies.
Newmont says the project would guarantee year-round water supplies, in part by building reservoirs to replace lakes that would be affected by the mining.
The Conga dispute is one of 200 environmental conflicts that the Humala government is struggling to manage, and Merino assured a business audience that Peru sees investment as key to economic development.
"The Peruvian state wants to be a facilitator ... it wants to be facilitators for investors," he said.

Quote :
Newmont Mining sees costs rising in 2012
Thu Feb 23, 2012 7:06pm EST
* Q4 EPS $1.17 vs est $1.27
* Expects higher labor, power prices
* Sees lower production at Indonesia mine
* Shares down 1 pct after market

Feb 23 (Reuters) - Newmont Mining said it expects a rise in costs for gold and copper in 2012, mainly due to higher labor and power prices and estimated lower production at a mine in Indonesia.
The world's second-biggest gold producer said attributable gold production in 2012 is expected to be about 5 million ounces to 5.2 million ounces, with attributable copper production of 150 million pounds to 170 million pounds.
Attributable gold and copper production were 5.2 million ounces and 206 million pounds respectively in 2011.
In 2012, costs applicable to sales for gold are expected to be between $625 and $675 per ounce, and copper between $1.80 and $2.20 per pound. They were $591 per ounce and $1.26 per pound respectively in 2011.
Denver-based Newmont said the outlook also reflects lower expected production at its Batu Hijau mine in Indonesia, where the company is currently engaged in "stripping" and plans to process lower grade stockpiles until late 2013.
A company spokesperson had told Reuters last month that the company was digging more rock containing lower-grade ore in order to gain access to part of the mine with higher grades during the process of stripping.
Newmont said it currently plans to spend about $3 billion to $3.3 billion in attributable capital expenditures in 2012.
The company's fourth-quarter net loss was $1.02 billion, or $2.08 per basic share, compared with a profit of $812 million, or $1.65 per basic share.
Adjusted net income was $1.17 per basic share. By that measure analysts were expecting $1.27, according to Thomson Reuters I/B/E/S.
Newmont shares were down 1 percent at $63.61 in extended trading. They closed at $63.80 on Thursday on the New York Stock Exchange.
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Old 03-14-2012, 09:46 AM   #2
Yellow Jacket
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Just bought some NEM shortly after the opening for $ 53.79
They're technically oversold:

P/E is barely over ten at current gold prices.
Their cost/oz is about $650, so they have tremendous margins.
They have very low debts (30% of capital)
35% production growth potential until 2017.
Have been growing reserves for the last 4 years.
Dividend yield for Q1 2012 gold prices should be about 2.5% (annualized).

Investor presentation audio by the CEO O'Brian from late February 2012 with slides changing automatically:
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Old 03-14-2012, 09:52 AM   #3
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Funny you mention NEM..

Personally, I wont touch it because it's too large of a company for my speculation... however, if they are able to clean it up and get above 54.50, we should look for the gold indexes to follow suit.
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Old 04-25-2012, 12:37 PM   #4
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Seems like NEM's Peruvian issues are finally beeing solved, even if the central government has to intervene. The local opponents seem to be using environmentalism as a cover-up for Marxist motives (not such a rare tactic in politics). The real objective seems to be that they want a bigger share of the profit pie. Maybe DCRB knows more details?:
Quote :
Newmont shows willingness to improve Conga gold project
Peru's government said on Monday US-based Newmont Mining is willing to improve the environmental mitigation plan for its proposed $4.8 billion Conga project as it seeks to overcome opposition to the mine.
Posted: Tuesday , 24 Apr 2012

Newmont Mining has shown its "willingness" to improve the environmental mitigation plan for its proposed gold mine known as Conga, Peru's government said on Monday, as it seeks to overcome opposition to the mine.
Mines and Energy Minister Jorge Merino said he would confer with officials from U.S.-based Newmont to define how the mitigation plan would be altered after a team of independent environmental auditors recommended a series of changes that could increase the cost of the controversial project, now estimated at $4.8 billion.
"We are going to sit down with them. They've said they are evaluating the proposed measures recommended by the auditors, but I think there's a good willingness on their part," Merino said on RPP radio.
Over the weekend, Carlos Santa Cruz, Newmont's chief for South America, said the company would carry out "technical and economic evaluations" of the auditors' recommendations, which called for the miner to preserve two of four alpine lakes that would be displaced by the mine and replaced with reservoirs.
President Ollanta Humala on Friday urged community activists to stop protesting against the stalled mine's construction and said the government would make sure the company adheres to strict social, environmental and labor goals.
His comments to end a months-long impasse came two days after the auditors encouraged the company to build larger reservoirs to guarantee more water supplies.
Newmont's plans fueled protests in the northern Cajamarca region late last year as some townspeople feared the most expensive mine ever attempted in Peru would leave local farmers without sufficient water supplies and cause pollution. The mine's construction has been halted since November.
The leaders of the protests - Gregorio Santos, who is the president of the region of Cajamarca, and Wilfredo Saavedra, who runs an environmental group - have said the Conga project isn't viable and have frowned on the auditors' recommendations.
Some of the protesters' arguments against the mine were undercut by the report from the auditors - who said water in the lakes is unfit for human or animal consumption because it is naturally toxic.
On Monday, Prime Minister Oscar Valdes was asked if the central government would impose the country's largest ever mining investment on community groups in Cajamarca who say they are opposed to the mine.
"The president of Cajamarca will have to understand that he needs to ensure development for his people," he told reporters. "We favor dialogue, but the state also has tools to make things happen."
Peru's Constitutional Tribunal has ruled that a regional ordinance Santos passed that said the mine could not be built was unconstitutional and on Friday public prosecutors opened an inquiry against him over allegedly using public funds to finance anti-Conga protests.
Police have detained Saavedra at least twice amid protests that blocked roads and later released him. A lawyer, Saavedra spent a decade in jail for belonging to the Marxist insurgency group Tupac Amaru. He later reinvented himself as an environmentalist.
Santos and Saavedra have at times seemed to criticize Humala, a former leftist, for drifting too far to the right since taking office in July in Peru, where rural communities have long complained about not seeing the fruits of the country's vast mining sector. A third of Peruvians live in poverty.
"The fight in Cajamarca is political. What we are asking for is a change in the extractive economic model backed by Humala," Santos said in Sunday's El Comercio newspaper.
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