Freeport McMoran Copper (FCX) is a miner of copper, gold and molybdenum. It has operations in North and South America, Indonesia and Africa, and competes with other miners such as the Southern Copper (SCCO), Codelco and Newmont Mining (NEM).

Continue reading Should Freeport Pursue Lundin Mining?

Should Freeport Pursue Lundin Mining? originally appeared on BloggingStocks on Thu, 10 Mar 2011 12:40:00 EST. Please see our terms for use of feeds.

Just after the close yesterday, Newmont Mining (NYSE: NEM) guided up 2009 production and guided 2009 cash costs lower. NEM also announced that it would be purchasing the remaining interest in its majority owned Boddington Mine from Anglogold Ashanti (NYSE: AU) (which equates to 6.6 mln reserve ounces). That's an increase of 8 percent in NEM's Proven & Probable (P&P) reserves at a price tag of $1.2 bln, which will be raised via an equity offering of 19 mln shares.

Based on NEM's 441 mln shares outstanding, we're looking at dilution of just over 4 percent. Thus, in theory, the deal is not even dilutive, given the 8 percent increase in P&P reserves that the company is acquiring with only a 4 percent dilution in equity. Based on what I have seen so far, this looks like a spectacular deal for NEM.

Continue reading Newmont strikes a deal

Newmont strikes a deal originally appeared on BloggingStocks on Wed, 28 Jan 2009 12:19:00 EST. Please see our terms for use of feeds.

This post was written by Minyanville contributor Lance Lewis.

Banro (NYSE: BAA) jumped 13% yesterday after the company announced that it had finally completed its bankable feasibility study on its Twangiza project and proved up nearly 4 mln ounces of its 10 mln ounce resource. Thus, we can now calculate an NAV for BAA.

BAA has no debt. So, assuming $1,000 gold, 3.67 mln ounces of Proven & Probable reserves, an average cash cost of $429 per ounce over the life of the mine (which is based on the feasibility study), and the estimated $410 mln required for cap ex, we get an NAV of almost $15 a share (which gives zero value to the company's current cash balance of around $20 mln and its remaining 5.6 mln ounce resource at Twangiza, not to mention the resource estimates at its other properties).

Continue reading Banro (BAA): A golden stock

Banro (BAA): A golden stock originally appeared on BloggingStocks on Tue, 27 Jan 2009 13:15:00 EST. Please see our terms for use of feeds.

Newmont Mining (NEM) lifted as gold rises above $900 again originally appeared on BloggingStocks on Mon, 09 Jun 2008 14:15:00 EST. Please see our terms for use of feeds.

After hitting a one-year low of $38.01 in August, the stock hit a one-year high of $56.35 in November. NEM opened this morning at $50.72. So far today the stock has hit a low of $50.49 and a high of $51.34. As of 11:05, NEM is trading at $51.17, up $1.14 (2.3%). The chart for NEM looks bullish but deteriorating, while S&P gives the stock a neutral 3 STARS (out of 5) hold rating.

For a bullish hedged play on this stock, I would consider a January bull-put credit spread below the $45 range. A bull-put credit spread is an options position that combines the purchase and sale of put options to hedge risk in case the stock doesn't do what you think but still leverage nice returns. For this particular trade, we will make an 11.1% return in just 6 weeks as long as NEM is above $45 at January expiration. Newmont would have to fall by more than 11% before we would start to lose money. Learn more about this type of trade here.

Continue reading Newmont Mining (NEM) higher on rising gold futures

Newmont Mining (NEM) higher on rising gold futures originally appeared on BloggingStocks on Mon, 10 Dec 2007 12:58:00 EST. Please see our terms for use of feeds.

MOST NOTEWORTHY:

• Baird upgraded DPL Inc (NYSE: DPL) to Outperform from Neutral following better-than-expected guidance.
  
• Citigroup upgraded IAC/InterActiveCorp (NASDAQ: IACI) to Buy from Hold as they believe HSN's turnaround, Lending Tree's stabilization and Ask's profitability ramp should drive EBITDA growth acceleration in 2008. The company was also upgraded to Overweight from Equal Weight at Lehman following IAC's better-than-expected Q3 report.
  
• Citigroup upgraded shares of F5 Networks Inc (NASDAQ: FFIV) to Buy from Hold, as they believe now is the time to buy the stock with sentiment at a low-point heading into an attractive 2008 product cycle.
  
• Stifel raised its rating on Community Health Systems Inc (NYSE: CYH) to Buy from Hold based on improved visibility from detailed 2008 guidance.
  
• Kaufman upgraded Parametric Technology Corporation (NASDAQ: PMTC) to Buy from Hold based on an impressive quarter and favorable industry trends.

• China Life Insurance Company Limited (NYSE: LFC) was upgraded to Peer Perform from Underperform at Bear.
  
• The Pep Boys - Manny, Moe & Jack (NYSE: PBY) was upgraded to Neutral from Sell at Goldman.
  
• JP Morgan added Nalco Holding Company (NYSE: NLC) to its Focus List.
  
• RBC upgraded Newmont Mining Corporation (NYSE: NEM) to Sector Perform from Underperform.

Analyst upgrades: DPL, IACI, FFIV, CYH and PMTC originally appeared on BloggingStocks on Thu, 01 Nov 2007 10:55:00 EST. Please see our terms for use of feeds.

Newmont Mining Corporation (NYSE: NEM), the world's largest non-hedged gold producer, recently up $4.13 to $50.59:

NEM reported third quarter earnings per share of 72 cents verses consensus estimates of 25 cents. Gold was recently up .95% to $795.30 according to Bloomberg. NEM call option volume of 68,640 contracts compares to put volume of 36,594 contracts. NEM November option implied volatility of 38 was above its 26-week average of 32 according to Track Data, suggesting non-directional price risks.

Bank of America Corporation (NYSE: BAC) recently up 21 cents to $48.22:

BAC call option volume of 13,902 contracts compared to put volume of 4,588 contracts. BAC November option implied volatility of 28 was above its 26-week average of 23 according to Track Data, suggesting larger risk.

Volatility Index: VIX down 2.35 to 18.34, suggesting less risk after rate cut.

Daily options Update is provided by Stock Specialist Paul Foster of theflyonthewall.com.

Visit AOL Money & Finance for more earnings coverage

Option update 10-31-07: Newmont Mining volatility at 38 as NEM rallies 8% on EPS, Gold near $800 originally appeared on BloggingStocks on Wed, 31 Oct 2007 16:29:00 EST. Please see our terms for use of feeds.

Newmont Mining Corp. (NYSE: NEM) stock is soaring to a new 52-week high today after the company's third quarter earnings release. Profit in the quarter doubled to $0.88 per share, obliterating analyst expectations of $0.25 per share profits. Even though gold futures are relatively flat today, prices have been rising recently, lifting the outlook for NEM. If you think that the company won't fall by too much in the coming months, then now could be a good time to look at a bullish hedged trade on NEM.

After hitting a one year low of $48.42 in the summer, the stock has risen quite a bit, settling in above the $45 mark with recent resistance around $48 until today. NEM opened this morning at $47.40. So far today the stock has hit a low of $47.14 and a high of $50.63. As of 10:45, NEM is trading at $50.53, up $4.09 (8.8%). The chart for NEM looks bullish and steady, while S&P gives the stock a neutral 3 STARS (out of 5) hold rating.

For a bullish hedged play on this stock, I would consider a December bull-put credit spread below the $42.50 range. A bull-put credit spread is an options position that combines the purchase and sale of put options to hedge risk in case the stock doesn't do what you think but still leverage nice returns. For this particular trade, we will make a 5.3% return in just 7 weeks as long as NEM is above $42.50 at December expiration. Newmont would have to fall by more than 15% before we would start to lose money.

Continue reading Newmont Mining posts great earnings

Newmont Mining posts great earnings originally appeared on BloggingStocks on Wed, 31 Oct 2007 13:04:00 EST. Please see our terms for use of feeds.

Newmont Mining (NEM) to buy rival Miramar (MNG) for $1.53 billion originally appeared on BloggingStocks on Tue, 09 Oct 2007 12:25:00 EST. Please see our terms for use of feeds.

The stock leapt last month from trading near its year low to a 52-week high of $48.42 on September 24, but quickly retreated to the mid-$40's. This morning, NEM opened at $45.45. So far today the stock has hit a low of $44.70 and a high of $45.48. As of 10:35, NEM is trading at $44.75, down $1.25 (-2.7%). The chart for NEM looks bullish and steady, while S&P gives the stock a neutral 3 STARS (out of 5) hold rating.

For a bearish hedged play on this stock, I would consider a November bear-call credit spread above the $50 range. A bear-call credit spread is an options position that combines the purchase and sale of call options to hedge risk in case the stock doesn't do what you think but still leverage nice returns. For this particular trade, we will make a 13.6% return in 7 weeks as long as NEM is below $50 at November expiration. Newmont would have to rise by more than 11% before we would start to lose money.

Continue reading Newmont Mining (NEM) lower as gold retreats on stronger dollar

Newmont Mining (NEM) lower as gold retreats on stronger dollar originally appeared on BloggingStocks on Tue, 02 Oct 2007 11:15:00 EST. Please see our terms for use of feeds.

Newmont Mining (NYSE: NEM) implied volatility elevated as Gold above $718.

NEM, the world's largest non-hedged gold producer, closed at $45.16. Gold is at $718.80 according to Bloomberg. NEM overall option implied volatility of 34 is above its 26-week average of 29 according to Track Data, suggesting larger price risks.

PetroChina (NYSE: PTR) volatility elevated at 38 as Warren Buffett reduces stake.

PTR, a Peoples Republic of China run petroleum and natural gas company, closed at $145.05. Dow Jones reported that Warren Buffett's Berkshire Hathaway reduced its stake in PTR to 9.72% from 10.16%. WTI Crude oil futures are down 0.03% a $78.21 a barrel according to Bloomberg. PTR overall option implied volatility of 38 is above its 26-week average option implied volatility of 30 according to Track Data, suggesting larger price risk.

Volatility Index S&P 500 Options-VIX at 25.27; 10-day moving average is 24.87.

Daily options Update is provided by Stock Specialist Paul Foster of theflyonthewall.com

Option update: Gold, oil, Buffett and volatilities originally appeared on BloggingStocks on Wed, 12 Sep 2007 10:03:00 EST. Please see our terms for use of feeds.

Ethisphere Magazine, which insists that ethical behavior and profitable businesses are not mutually exclusive, recently released its annual ranking of the world's most ethical companies, and there are a few surprises on the list of those companies that use ethical leadership to drive profits.

To make the list for consideration, companies are first peer-reviewed according to standards in 9 separate criteria sets for 30 different categories of industry. Those criteria, not equally weighted, are legal and regulatory compliance, governance, corporate citizenship, internal ethical systems, transparency, perception and reputation, industry leadership, executive leadership, and innovation. What the companies on the list seem to share is a commitment to corporate social responsibility that far exceeds mere regulatory compliance. Ethical standouts are generally led by senior management that is willing to make ethical decisions on economic, social, and environmental factors despite unfavorable short-term consequences. These companies consider themselves as stakeholders in their own reputations.

Surprises on the list include McDonald's Corp. (NYSE: MCD), though even small changes in corporate behavior can have a enormous result given the size of the company. McDonald's offers minorities special opportunities to own franchises in the company, and is becoming increasingly aware of environmental consequences of its production and packaging policies. Also a surprise on the list is Google Inc. (NASDAQ: GOOG), a company with virtually no consumer privacy protection policies. Surprising because of their absence from the list are Dell Inc. (NASDAQ: DELL), which has a comprehensive computer recycling program, and Newmont Mining Corp. (NYSE: NEM), which sponsors educational programs for children living near its mining operations in developing countries.

Also included on the list are the Kellogg Co. (NYSE: K), which has produced nutritious products in recycled packaging since 1906 and has had a Social Responsibility Committee in place since 1979; and Starbucks Corp. (NASDAQ: SBUX), which is the world's largest seller of Fair Trade Certified Coffee since 2000.

The world's most ethical companies originally appeared on BloggingStocks on Sun, 24 Jun 2007 15:10:00 EST. Please see our terms for use of feeds.

Seagate (NYSE: STX) -- July calls active at Elevated volatility on renewed Speculation. STX designs, manufactures and markets rigid disc drives. STX is up $0.09 cents to $20.94 on renewed LBO chatter. STX has a market cap of $11.2 billion and long-term debt of $1.7 billion. STX reported annual 2006 revenue of $9.2 billion. Brean Murray has a Hold rating on STX. STX call option volume of 17,889 contracts compares to put volume of 2,862 contracts. STX July option implied volatility of 41 is above its 26-week average of 34 according to Track Data, suggesting larger price risks.

Neurochem (NASDAQ: NRMX) option implied volatility suggests Risk into Data. NRMX is recently down $0.13 to $6.68. PIPR lowered its price target to $4.00 from $6.50. NRMX first phase three study of its Alzheimer treatment drug, Alzhemed is expected to be release between now and the end of the quarter. NRMX July option implied volatility is above 215 according to Track Data, indicating large price fluctuations. NRMX puts are more expensive than calls because NRMX is difficult to borrow.

Option volume leaders today are: Neurochem, Apple (NASDAQ: AAPL), Newmont Mining (NYSE: NEM) and Target (NYSE: TGT).

Daily Option Update is provided by Stock Options Specialist Paul Foster of theflyonthewall.com

Option update 6-12-07: Seagate -- renewed LBO chatter originally appeared on BloggingStocks on Tue, 12 Jun 2007 13:35:00 EST. Please see our terms for use of feeds.

"My sources indicate that the world's largest gold company, Barrick Gold Corp. (NYSE: ABX), may make a play for the world's second largest, Newmont Mining Corp. (NYSE: NEM)," suggests Mark Skousen, a 25 year veteran of the advisory industry.

Importantly, takeover speculation is just an added attraction in his assessment. The editor of The Hedge Fund Trader explains, "Even if Barrick doesn't, Newmont still belongs in your hedge portfolio."

For one, he calls Newmont is the bluest of blue chip gold companies, pointing to proven and probable reserves of 95 million ounces, with operations in the U.S., Canada, Australia and Mexico.

Further, he notes, the company does not hedge its gold production either, which allows investors to benefit fully from a rise in the price of gold.

In addition, he says, "Newmont's earnings are superb." He notes that the gold mining company's net income jumped more than three-fold in the fourth quarter of 2006, with profits of $223 million on revenue of $1.46 billion.

Continue reading Takeover for Newmont?

Takeover for Newmont? originally appeared on BloggingStocks on Thu, 29 Mar 2007 08:30:00 EST. Please see our terms for use of feeds.

With a penchant for following insider buying, Jack Adamo takes a fundamental long-term approach to investing. In his Insider Plus newsletter, he has been a fan of mining companies, and sees recent price weakness as a reason to add to positions in Meridian Gold (NYSE:MDG) and Compania de Minas Buenaventura (NYSE:BVN).

His proprietary indicators, which follow patterns of insider buying and selling, had been forecasting a setback for metals; as such, he did not view the recent pullback as a surprise. And with the "speculative fever" in the gold sector having cooled, he is now more comfortable recommending mining positions.

One favorite is Meridian Gold, which he notes pulled back nearly 16% on what he cites as no news except a broker downgrade from Market Outperform to Market Perform. He notes, "This is hardly cause for panic."

"Meridian is back within our buy range now," he says. "If you don't own the stock, I'd ease in by buying a half position at this time, and waiting to see what the market does. Still, it's a good long-term buy at this price, with the stock down 33% from its 52-week high."

Continue reading Adamo: Mining for value

Adamo: Mining for value originally appeared on BloggingStocks on Thu, 22 Mar 2007 11:15:00 EST. Please see our terms for use of feeds.

MOST NOTEWORTHY: Home Depot (HD) and Lowe's (LOW) led a modest downgrade list Monday, as the Dow and Nasdaq moved higher in early trading.

• UBS Investment downgraded to Reduce From Neutral both Lowe's Companies, Inc. (NYSE:LOW), target lowered to $24 from $30, and Home Depot, Inc. (NYSE:HD), target to $32 from $37, citing further weakness n the U.S. housing market.
• Bernstein downgraded both Intel Corp. (NASDAQ:INTC) to Underperform from Market Perform, target is $17; and National Semiconductor Corp. (NYSE:NSM), to Market Perform from Market Perform, target is $26, citing concerns over demand and inventory build in the sector.

OTHER DOWNGRADES:

• BMO Capital downgraded Duke Energy (NYSE:DUK) to Market Perform from Outperform, following Q3 results and due to the company's outlook.
• Finally, Matrix downgraded Newmont Mining (NYSE:NEM), citing increased costs and valuation.

Analyst summaries provided by TheFlyOnTheWall.com (subscription required).

Analyst downgrades 11-6-06: Lowe's, Home Depot and Intel get downgraded originally appeared on BloggingStocks on Mon, 06 Nov 2006 10:36:00 EST. Please see our terms for use of feeds.