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Posts tagged ‘Newmont Mining Corp (NEM)’

Gold mines output to reach record high

November 20th, 2013

by Cecilia Jamasmie | November 20, 2013 | Reprinted by permission of MINING.com

The world’s gold mines are set to hit record highs in terms of production this year, which won’t help bullion prices recover much from this year’s 25% decline, Reuters reports.

A clear sign of this trend can be seen in the world’s top three gold miners’ latest results, with Barrick Gold TSX:ABX, Newmont Mining NYE:NEM and AngloGold Ashanti NYE:AU all reporting higher production.

Large gold projects put into motion during gold’s 12-year rally are set to start production in the new year, including new mine production and expansion in and around the Nevada gold fields and the Oyu Tolgoi copper mine in Mongolia, whose significant gold byproduct potential is estimated to be 330,000 ounces per year.

Add to the mix the fact that gold output in China, the world’s top producer of the yellow metal, is up 6.8% in the last nine months, as figures published November 20 by the China Gold Association show and the fact that the World Gold Council said recently that Q3 bullion demand hit its lowest level in the last four years. Then the outlook doesn’t look promising for gold bulls.

The Asian superpower has been the world’s top gold producer since 2007, when it churned out 270.491 tonnes of the precious metal and replaced South Africa in the number one spot.

The World Gold Council has forecast that China will overtake India as the world’s largest gold consumer this year. In 2012, Chinese gold consumption jumped 9.35% to 832 tonnes.

Read also: Seven reasons the gold price may not see $1,400 again.

Reprinted by permission of MINING.com

Peru confirms China’s largest copper producer wants a stake in Las Bambas

November 5th, 2013

by Cecilia Jamasmie | November 5, 2013 | Reprinted by permission of MINING.com

Peru’s Minister of Energy and Mines, Jorge Merino, confirmed November 5 that Jiangxi Copper, China’s largest copper producer, has submitted a bid for Glencore Xstrata’s Las Bambas project.

While Merino did not specify whether the offer came from Jiangxi Copper Group or its publicly traded unit Jiangxi Copper Co Ltd, La Republica (in Spanish) quoted him November 5 as saying the sale of the $5.2-billion mine will likely happen before the 2014 deadline.

Jiangxi Copper faces fierce competition from fellow Chinese miners MMG and Minmetals, the state-owned metals and mining company. U.S. miner Newmont NYE:NEM, the world’s second-largest gold producer, is also rumoured to be eyeing the Peruvian mine, thought it has not confirmed whether it will bid.

As the world’s biggest copper importer, China is looking to secure a domestic-owned source for the metal. Currently, the country only satisfies one-third of its demand.

Las Bambas’ three pits are expected to produce more than 400,000 tonnes of copper per year once operations begin at the end of 2014. It will also produce significant quantities of gold, silver and molybdenum as by-products.

Global mining giant Glencore Xstrata put its Las Bambas property up for sale in May as part of a condition imposed by Beijing for Glencore’s $76-billion merger with Xstrata PLC .

Reprinted by permission of MINING.com

Gold stocks slaughtered, Barrick drops 10%

October 31st, 2013

by Frik Els | October 31, 2013 | Reprinted by permission of MINING.com

The gold price slid more than $24 or 2% an ounce on October 31 to a week low of $1,323 after the U.S. Federal Reserve signalled it may cut back its stimulus program sooner than thought and Chinese demand for the metal waned.

After a fightback from near three-year lows below $1,200 struck at the end of June, gold’s momentum now seems to have turned negative again with gold stocks sold off heavily on a relatively modest fall in the price of the metal.

By the October 31 close Barrick Gold TSX:ABX had lost 5.9%, after announcing results that were in line with expectations and the suspension of its troubled Pascua Lama project on the border between Chile and Argentina.

The world’s number one miner of the precious metal followed up after hours with more damaging news. The Toronto-based miner announced it is raising $3 billion by issuing 163.5 million common shares at $18.35 per share.

Barrick is now worth $19.4 billion, down 44% so far this year and nowhere near its $54-billion market value a mere two years ago.

Investors duly marked down the stock again with the counter shedding an additional 5.7% to $18.31 in after-hours trade in New York, wiping more than $2 billion off the value of the company on the day.

Barrick is now worth $19.4 billion, down 44% so far this year and nowhere near its $54-billion market value a mere two years ago.

Newmont Mining NYE:NEM, with a market value of $13.5 billion, escaped the worst of it, down 2.8% in regular trading and trading slightly to the upside after hours, after announcing profits up 11% despite a fall in revenue.

Attributable gold production rose 4% to 1.28 million ounces, while attributable copper output decreased 3% to 34 million pounds during the third quarter at the Denver-based company.

The world’s third-largest gold producer behind Newmont, AngloGold Ashanti NYE:AU was one of the worst performers of October 31. The Johannesburg-based company’s ADRs listed in New York slid 6.7% on October 31 and the value of the company has now halved this year.

Fellow South African miner Gold Fields NYE:GFI, the worst performer among the gold majors this year, gave up 4.4% in New York. The world’s fourth-largest gold producer has had its value slashed 63% in 2013, with investors punishing it for its contrarian purchase of high-cost mines amid the slump.

Goldcorp TSX:G, expected to produce around 2.5 million ounces of gold this year, declined 3.9%. The Vancouver-based company retained the top spot as the most valuable gold stock, with a Toronto big board market capitalization of $21.6 billion.

Toronto’s Kinross Gold TSX:K managed to hold above a $6-billion value despite losing 5.3% on the day. Investors in the company are nursing a $5-billion loss in market cap this year after Kinross, like all the majors, took multi-billion charges against the value of its operations.

Canada’s second-tier gold miners also suffered a loss of confidence from gold investors, giving up much of the gains of recent weeks.

Yamana Gold TSX:YRI skid 3.4%, Agnico Eagle Mines’ TSX:AEM losses were fairly modest at 2.5% while Eldorado Gold TSX:ELD declined 5.1% and IAMGOLD TSX:IMG dropped 5.3%.

Reprinted by permission of MINING.com

Investors pile back into gold stocks, Goldcorp up $2 billion in a week

October 22nd, 2013

by Frik Els | October 22, 2013 | Reprinted by permission of Mining.com

Investors pile back into gold stocks, Goldcorp up $2 billion in a week

Good day for the gold team. Photo: Perpetual Tourist

The gold price jumped more than $20 or 1.8% an ounce on October 22 to a three-week high above $1,340 after disappointing U.S. economic data.

The much weaker-than-expected employment numbers in the U.S. convinced gold buyers that any reduction in economic stimulus by the Federal Reserve will come later rather than sooner.

With positive sentiment returning to the gold market, investors took the chance to jump back into mining stocks which have been decimated by the 20% retreat in the price of the metal this year.

On October 22 Barrick Gold TSX:ABX shot up 4.8%, scaling the $20-billion market value for the first time in a month.

The Vancouver-based company has jumped more than $2 billion in market value over the past week and is now worth $21.3 billion.

The world’s number one miner of the precious metal has added more than $5 billion in market value since hitting 21-year lows early July.

Barrick is now worth $20.5 billion on the TSX, still down 41% so far this year amid an aggressive divestment and cost-cutting drive that is beginning to bear fruit.

Newmont Mining NYE:NEM, with a market value of $14.1 billion, added 3.5%. The company recently cut predictions for its copper output, but gold production targets remain unchanged at 4.8 million to 5.1 million ounces for the year.

The Denver-based company has not escaped the carnage in the gold sector and is down 38% this year.

The world’s third-largest gold producer behind Newmont, AngloGold Ashanti NYE:AU was one of the best performers on October 22. The Johannesburg-based company’s ADRs listed in New York gained 9% to a four-month high, but are still trading down 48% this year.

Fellow South African miner Gold Fields NYE:GFI, which is the worst performer among the gold majors this year, jumped 5% in New York. The world’s fourth-largest gold producer has had its value slashed 62% in 2013 with investors punishing it for its contrarian purchase of high-cost mines amid the slump.

Goldcorp TSX:G, expected to produce around 2.5 million ounces of gold this year, jumped 4.9%, helping retain its top spot as the most valuable gold stock.

The Vancouver-based company has jumped more than $2 billion in market value over the past week and is now worth $21.3 billion.

Toronto’s Kinross Gold TSX:K scaled the $6-billion mark, gaining 3.3% but investors in the company are still nursing a $5-billion loss in market cap this year after Kinross, like all the majors, took multi-billion-dollar charges against the value of its operations.

Australia’s Newcrest Mining declined 0.5% on the Sydney bourse, missing out on the gold price rally in New York. The Melbourne-based company earlier this month ousted its CEO and chairman after its August results showed an AU$5.6-billion loss.

Canada’s second-tier gold miners also enjoyed a rerating with Yamana Gold TSX:YRI adding 4.6%, Agnico Eagle Mines TSX:AEM jumping more than 4.7%, Eldorado Gold TSX:ELD advancing 3.8% and IAMGOLD TSX:IMG upping its value 4.5%.

Reprinted by permission of Mining.com

Investors pour into gold stocks: Barrick gains $7bn in 7 weeks

August 23rd, 2013

by Frik Els | August 23, 2013 | Reprinted by permission of Mining.com

The gold price made a serious attempt to scale the psychologically important $1,400 level on Friday, sending investors scurrying for gold mining stocks.

Bullion bulls are celebrating an 18% jump in the price of gold since the metal hit multi-year lows below $1,200 at the end of June.

Barrick Gold TSX:ABX gained 3% to $21.20 on Friday, up an astounding 49% in just seven weeks.

The Toronto-based global No. 1 gold miner continues to recover from 21-year lows of $14.22 struck on July 5, following a string of setbacks at the company.

Barrick is now worth $21 billion on the TSX, gaining $7 billion in market value in as many weeks. The company, which has written down the value of its assets by some $13 billion this year, peaked at a market capitalization in January 2011 of more than $54 billion.

Gains for Newmont Mining NYE:NEM have been more modest, but the $16.4-billion Denver-based company, which hopes to mine around five million ounces this year, is still up nearly 20% since gold’s June 28 low.

Goldcorp is the best performer of the gold majors, keeping its 2013 market value losses to 10% despite the 16% drop in the gold price this year.

The world’s third-largest gold producer in terms of ounces mined, AngloGold Ashanti NYE:AU gained 3.3% on Friday, but the Johannesburg-based company has made few strides on the back of the resurgent gold price.

Shares of the company are still down 45% year-to-date as it struggles with unrest in its home country’s mining sector and falling gold output. In dollar terms AngloGold’s JSE-listed shares have performed even worse, down 10% as the rand continues to slide against the U.S. and Canadian dollar.

Fellow South African miner Gold Fields NYE:GFI was the lone counter in the red on Friday as the company suffered a second day of losses in reaction to its purchase of three Barrick gold mines.

Gold Fields’ acquisitions in Australia will add more than 400,000 to its annual output, putting it within range of the mined ounces of Canada’s Goldcorp TSX:G, which expects to produce between 2.5 million and 2.8 million ounces in 2013.

Vancouver-based Goldcorp, the world’s most valuable listed gold company, added 2.4% on Friday, pushing its market value to $26.6 billion.

Goldcorp is the best performer of the gold majors, keeping its 2013 market value losses to 10% despite the 16% drop in the gold price this year.

Canadian peer Kinross Gold TSX:K—which this year expects to produce between 2.4 million to 2.6 million ounces—traded up more than 3%.

Australia’s Newcrest Mining TSX:NM jumped more than 5% on the Sydney bourse.

The 2-million to 2.3-million-ounce producer is still 43% cheaper than at the start of the year after suffering $6 billion in writedowns, a dividend cut and an investigation by Australian market regulators prompted by suspicious price movements.

See also: Friday rally sets up gold price breakout.

Reprinted by permission of Mining.com