Yesterday, Newmont Mining (NEM) withdrew its arbitration claim against Indonesia. Sterne Agee’s Michael Dudas and Satyadeep Jain are encouraged by the news:
Bloomberg News Newmont has withdrawn international arbitration filing following encouraging developments and discussions with the Government of Indonesia. Signing of the agreement should pave the way for ramp-up of copper concentrate production and exports from Batu Hijau. This encouraging news helps to remove an overhang for the shares…
Newmont’s shares underestimate where gold prices may trade, in our view. As longer-term plans emerge supportive to margins and returns, we believe Newmont’s valuation should regain support based on its assets, commitment to cash flow, and margin and balance sheet strength.
Dudas and Jain call Buy-rated Newmont their “favorite large-cap North American gold equity,” topping the likes of Hold-rated Barrick Gold (ABX) and Buy-rated Agnico-Eagle Mines (AEM).
Shares of Newmont Mining have dipped 0.1% to $26.48 at 10:32 a.m., while Barrick Gold has fallen 0.3% to $18.14 and Agnico-Eagle Mines has fallen 0.2% to $37.27.
No comments:
Post a Comment