Newmont to Reduce Spending in Peru - Analyst Blog
May 24 2012 - 1:15PM
Zacks
According to Reuters, mining company Newmont Mining
Corp. (NEM) announced that it will reduce the amount that
it plans to spend on its gold mine project in Peru by two-thirds
due to delays caused by the Peruvian government and environmental
reviews.
The company noted that it will cut the costs on the project for
the 2012-2013 period and now expects to spend about $440 million,
significantly down from its previous outlook of $1.5 billion. As
per the report, Newmont is also considering whether it will go
ahead with the project as the mine faced protests by locals with
concerns that it will replace the existing alpine lakes with
artificial reservoirs, thereby causing pollution.
The company is evaluating the mine plan after it received
recommendations to by the Peruvian government and an independent
panel of experts, and is expected to respond to the experts' review
in June 2012.
Separately, the company has maintained its erstwhile guidance of
attributable gold production of approximately 5.2 million ounces
for 2013, and expects that this will rise to 7 million ounces by
2017.
Based in Colorado, Newmont Mining Corporation is one of the
world's largest producers of gold with several active mines in
Nevada, Peru, Australia/New Zealand, Indonesia and Ghana. It
competes with the likes of AngloGold Ashanti Ltd.
(AU), Barrick Gold Corporation (ABX) and
Gold Fields Ltd. (GFI).
Newmont is the only gold company included in the S&P 500
Index and Fortune 500. It was the first gold company included in
the Dow Jones’ world Sustainability Index.
We currently have a long-term Neutral recommendation on Newmont,
which is in line with a short-term Zacks #3 Rank (Hold).
BARRICK GOLD CP (ABX): Free Stock Analysis Report
ANGLOGOLD LTD (AU): Free Stock Analysis Report
GOLD FIELDS-ADR (GFI): Free Stock Analysis Report
NEWMONT MINING (NEM): Free Stock Analysis Report
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