Newmont Mining (NYSE:NEM) was downgraded from "Buy" to "Hold" by Stifel Nicolaus, as concerns over the lower production at the Boddington mine in Australia by analyst Heather Douglas was the reason for the downgrade.
Valuations seem to be too high after the approximate 30 percent increase in share price this year, and with Boddington not producing at levels it was expected to, expectations are it could drop in price.
Douglas consequently removed her $80 price target on the giant gold miner as well.
As the company moves toward full production at Boddington, the grade of ore has been lower than anticipated, and that could dramatically affect guidance and revenue if that doesn't change.
In the first half of 2009, through the end of June, Boddington brought in just under $500 million in combined gold and copper sales.
The market largely shook off the downgrade, with Newmont closing at $64.23, gaining $1.58, or 2.52 percent.
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