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.

Minyanville's Lance Lewis dares to share the kind of keen insight and actionable information you won't find in any prospectus. Here he answers a reader's burning question about gold miners stocks. For more original thought, visit www.minyanville.com or see some more thoughts on gold here.

Prof. Lewis,

Any thoughts on the theory being advanced by Jim Sinclair and James Puplava that naked shorts are responsible for beating down the junior gold stocks? Seems like the market is willing to give anyone more benefit of the doubt than Minefinders Corporation (NYSE: MFN) or similar new producers. Thanks in advance.

-Minyan Scott

MS,

Some people like to look for a conspiracy every time market prices don't do what they "believe" they should. However, I don't find that attitude very helpful or conducive to making money.