It seems Newmont Mining (NYSE:NEM) executives did more harm than good for the company in their quarterly report and comments afterwards. If they had kept to the data and how it would play out they would have been okay.
But as many have pointed out, especially with their CEO commenting on CNBC that gold was "an asset bubble," didn't help the company at all.
A couple of things were revealed on the conference call, and they were production estimates were going to be cut back slightly and costs were going to rise some.
Neither were a real game change, although there is a lot of nervousness over the stock, even if it doesn't seem warranted.
The fact that Newmont is among the cost leaders in the industry needs to be taken into account, as it offers them more flexibility than most of their competitors if they need to do something or the price of gold takes a major dive at sometime.
Consequently, RBC Capital decided Newmont will struggle, and downgraded them from "Sector Perform" to "Underperform."
Newmont closed Wednesday at $59.11, losing $0.78, or 1.30 percent. RBC has a price target of $63 on them.
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