Newmont Mining Corp. / NEM (NYSE)

    Newmont Announces Retirement of Wayne Murdy as CEO; Richard O'Brien Appointed CEO Effective July 1, 2007; Joseph Carrabba Elected to Board of Directors


    Last Update: 7:55 PM ET Jun 5, 2007


    DENVER, June 5, 2007 /PRNewswire-FirstCall via COMTEX/ -- Newmont Mining Corporation (NEM: Newmont Mining Corporation) today announced the retirement of Wayne W. Murdy as Chief Executive Officer as of July 1, 2007, and the appointment of Richard T. O'Brien as Chief Executive Officer and President as of the same date. Mr. O'Brien was also elected to the Board of Directors. Mr. Murdy will continue to serve as Chairman of the Board until the end of 2007, representing Newmont with international and industry organizations and in specific international initiatives.
    Glen A. Barton, lead director for Newmont, said, "Wayne has led Newmont through a remarkable transformation during his tenure as CEO. He successfully guided the company through its acquisitions of Normandy and Franco-Nevada, and the integration of those companies to create one of the world's leading natural resources companies. And as recent chair of the International Council on Mining and Metals, he was a strong leader and tireless advocate for improving the performance and addressing the key challenges of our industry. We look forward to his continued leadership, service and counsel to Newmont as Chairman of the Board." Mr. Murdy, who will turn 63 in July, cited a recent health issue and family considerations as influencing his decision to retire at this time.
    Mr. O'Brien joined Newmont in 2005 as Chief Financial Officer and was most recently President and Chief Financial Officer. Prior to joining Newmont, he served as a senior executive of AGL Resources and Pacificorp. Mr. Murdy commented, "Dick has more than 20 years of operating and financial experience in the energy, mining and natural resources businesses. We have benefited significantly from Dick's talents and perspectives, and he is the natural leader of Newmont's executive team as we move forward."
    Mr. O'Brien commented, "I am honored to be asked to lead a company with a storied history and the industry's most committed and talented employees. I look forward to continuing to work with Wayne, the Board of Directors, and our employees in my new role, to drive improvement on operational execution and to ensure a stable, predictable and profitable production and reserve base for the future."
    The Company also announced the election of Joseph A. Carrabba to the Board. Mr. Carrabba is Chairman, President and Chief Executive Officer of Cleveland-Cliffs Inc, the leading supplier of high-quality iron ore products to the North American steel industry. Prior to joining Cleveland-Cliffs in 2005, Mr. Carrabba held various senior operating positions with Rio Tinto PLC, including President and Chief Operating Officer of Diavik Diamond Mines. Vincent A. Calarco, Chairman of the Corporate Governance and Nominating Committee of the Board, said, "The Board is very pleased to add a director with such a depth of experience in mining operations. We look forward to benefiting from Mr. Carrabba's wealth of experience."
    SOURCE Newmont Mining Corporation

    Last Update: 5:40 PM ET Jun 6, 2007


    DENVER, June 6, 2007 /PRNewswire-FirstCall via COMTEX/ -- Newmont Mining Corporation (NEM: Newmont Mining Corporation) announced that it will report Second Quarter 2007 results on Thursday, August 2, 2007. A conference call will be held that day at 4:00 p.m. Eastern Time (2:00 p.m. Mountain Time) to discuss the quarter's results. The conference call will be carried on the Company's web site.


    Conference Call Details
    Dial-In Number 210.839.8500
    Leader Randy Engel
    Password Newmont
    Replay Number 402.220.0354


    Web Cast Details
    URL http://www.newmont.com



    The Second Quarter 2007 results, related financial and statistical information will be available prior to the conference call in the Investor Information section of the Company's web site, http://www.newmont.com. Additionally, the conference call will be archived for a limited time on the Company's web site.
    SOURCE Newmont Mining Corporation

    DALLAS, Jun 11, 2007 (BUSINESS WIRE) -- Pacific Gold Corp. (PCFG: pacific gold corp com) has been rated "Speculative Buy" with a target price of $0.90 by Beacon Equity Research Analyst, Lisa Springer, CFA.
    The full report is available at http://www.BeaconEquityResearch.com.
    Anyone interested in receiving alerts regarding Pacific Gold Corp. research should email members@beaconequityresearch.com with "PCFG" in the subject line.
    In the report, the analyst writes, "Pacific Gold's business is identifying, acquiring, and developing proven, undeveloped mineral deposits in the western US. The Company is focused on gold as well as base metals such as tungsten and uranium. PCFG owns and operates five subsidiaries that control several thousand acres of mineral leases and mining claims in Nevada, Oregon and Colorado.
    "PCFG plans to grow by purchasing or leasing existing mineral deposits across North America. According to management, with the acquisition of Project W, a large tungsten-based deposit, the Company had achieved approximately 55% of its goal in August 2005. To date, the gross value of PCFG's estimated gold, tungsten, vanadium and uranium resources approaches $1.7 billion, which make us to conclude that the 2009 target could be achieved."
    Other companies in the gold production market include Barrick Gold Corp (ABX: Barrick Gold Corporation) , Gold Corp (GG: goldcorp inc new com) and Newmont Mining (NEM: Newmont Mining Corporation) .

    "If the investor [in the bond] gets full participation [in the gold price moves] , then the miner would be giving up full participation," says George Milling-Stanley, manager of investor and market intelligence for the World Gold Council, an industry group funded by miners, including Newmont Mining (NEM ).

    "I believe that a return to a gold standard for the U.S. is [neither] advisable nor practical," says Pierre Lassonde, chairman of the World Gold Council and former president of Newmont Mining (NEM). "The best way for people to protect themselves worldwide against inflation or deflation is by owning gold directly through a gold [exchange-traded fund] ," such as streetTracks Gold Shares (GLD).


    Although Lassonde doesn't elaborate, one other problem might be the lack of gold itself. If the $5 trillion of global central bank reserves was backed by the 1 billion ounces of gold they owned, then the price would end up at $5,000 an ounce, vs. around $650 an ounce today, explains CPM's Christian.

    VANCOUVER, June 18, 2007 /PRNewswire-FirstCall via COMTEX/ -- Rare Element Resources Ltd (CA:RES: news, chart, profile) announces that the Sundance gold-exploration project 2007 drill program is underway at the Company's Wyoming property. The Sundance project is a joint venture between Paso Rico (USA) Inc., a wholly owned subsidiary of Rare Element Resources and Newmont North America Exploration Limited a subsidiary of Newmont Mining Corporation (Newmont). The 2007 drill program consists of a series of core and reverse-circulation drill holes with supporting detailed geological, geochemical and geophysical studies. It also includes an environmental assessment to permit a potentially larger drill program for 2008.
    Sundance employs the alkaline-intrusive complex gold-exploration model, as exemplified by the Cripple Creek, Colorado gold district (over 23 million ounces of gold produced since discovery in the late 1800's).
    Rare Element Resources Ltd (CA:RES) is a publicly traded mineral-resource company focused on gold and the rare-earth elements. The Company and Newmont have entered into the Sundance gold-exploration joint venture on the Company's Wyoming property. Newmont has the right to earn a 65% working interest in Rare Element Resources' property, excluding any rights to the rare-earth elements and uranium but including rights to gold and other metals, by performing US$5 million in property work expenditures over a five-year period. Newmont also has the right to earn an additional 15% working interest by completing a positive project feasibility study.
    ON BEHALF OF THE BOARD


    William H Bird, PhD, PGeo, President & CEO


    For information, refer to the Company's website at
    http://www.rareelementresources.com or contact:
    William H Bird, President & CEO, (604) 687-3520 ext 229,
    birdwill@aol.com.
    Mark T Brown, CFO, (604) 687-3520 ext 242,
    mtbrown@pacificopportunity.com.



    William H. Bird, PhD, PGeo, serves the Board of Directors of the Company as an internal, technically Qualified Person. Technical information in this news release has been prepared in accordance with Canadian regulatory requirements set out in National Instrument 43-101 and reviewed by Dr Bird. This news release was prepared by Company management, who take full responsibility for content. The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
    SOURCE Rare Element Resources Ltd.

    By Gabriel Madway
    Last Update: 5:39 PM ET Jul 5, 2007


    SAN FRANCISCO (MarketWatch) -- Newmont Mining Corp. (NEM: Newmont Mining Corporation) said late Thursday it is eliminating its entire 1.85 million-ounce gold hedge position and plans to discontinue its merchant banking segment. The Denver based gold producer said that during June it spent $578 million to eliminate its entire price-capped forward sales contracts, and it will report a pre-tax loss of roughly $531 million on the early settlement of the contracts, after a $47 million reversal of previously recognized deferred revenue. In addition, as a result of its decision to discontinue its merchant banking segment, Newmont said it will take a non-cash impairment charge of roughly $1.7 billion in the second quarter. The company said it is considering alternatives for the unit, including a possible sale or initial public offering.

    Newmont Mining (NEM) has eliminated its entire 1.85-million-ounce gold hedge position and said it plans to monetize components of its royalty and equity portfolio in the next 12 months, resulting in the discontinuation of the company's merchant banking segment as a separate unit.


    Last month, Newmont spent $578 million to terminate all of its price-capped forward sales contracts. The company will report a pretax loss of roughly $531 million on the early settlement of the contracts, after a $47 million reversal of previously recognized deferred revenue.


    "With the elimination of our gold hedge book, we have renewed our commitment to maximizing gold price leverage for our shareholders," CEO Richard O'Brien said in a press release. "In addition, we are focused on delivering improvements in our operating performance and cost structure going forward."


    Because of the decision to discontinue the merchant banking business, the carrying value of the division's goodwill is now classified as impaired. Consequently, Newmont expects to record a noncash charge of around $1.7 billion in the second quarter.


    Newmont has hired financial and legal advisers to evaluate alternatives to maximize the realized value of the merchant banking portfolio. Potential options include a public offering or private sales.

    Last Update: 5:45 PM ET Jul 5, 2007


    Jul 05, 2007 (Dow Jones Commodities News via Comtex) -- DOW JONES NEWSWIRES
    Newmont Mining Corp. (NEM) said late Thursday it is eliminating its entire 1.85 million-ounce gold hedge position and plans to discontinue its merchant banking segment.
    The Denver based gold producer said that during June it spent $578 million to eliminate its entire price-capped forward sales contracts, and it will report a pretax loss of roughly $531 million on the early settlement of the contracts, after a $47 million reversal of previously recognized deferred revenue.
    In addition, as a result of its decision to discontinue its merchant banking segment, Newmont said it will take a non-cash impairment charge of roughly $1.7 billion in the second quarter. The company said it is considering alternatives for the unit, including a possible sale or initial public offering.

    Gold miner leaves full-year forecasts unchanged


    SAN FRANCISCO (MarketWatch) -- Gold miner Newmont Mining Corp. laid out its second-quarter operating estimates Wednesday, saying they looked pretty much in line with its first-quarter results.
    "While we expect second-quarter results similar to the first quarter, we are benefiting from lower than anticipated costs at Ahafo in Ghana and the planned reduction in stripping at Batu Hijau in Indonesia," the company said in a statement.
    The news put a damper on Newmont's (NEM: NEM) share price, which fell 2.5% to $40.18. So far this year the stock is down 11% while gold prices are up 3.7% at $662.10 an ounce.
    Newmont's first-quarter results generated net income of 15 cents a share, down from 47 cents a year earlier, as higher costs and a weaker dollar bit into earnings. Analysts polled by Thomson Financial are looking for second-quarter 2007 earnings of 23 cents a share when the company reports on Aug. 2.
    Denver-based Newmont told investors it remains on track this year to sell between 5.2 million and 5.6 million ounces of gold from its mining interests and 210 million to 230 million pounds of copper.
    Chart of NEM
    The company said it expects its gold output to fetch $375 to $400 an ounce while its copper will likely sell in a range of $1.10 to $1.20 per pound. Newmont said its capital outlay forecast for the full year was unchanged at $1.8 billion to $2 billion.
    The company also provided a brief update on its Midas mine in Nevada, saying its emergency closure last month was unlikely to impact the company's operating forecast for the rest of the year.
    Part of the underground mine collapsed on June 19, killing one worker. The accident is still under investigation by federal safety regulators and Newmont declined to predict when Midas might reopen. Newmont estimates the Midas mine still holds 550,000 ounces of gold.
    In other news, the company said it reached a settlement with Uzbekistan in an ownership dispute linked to its Zarafshan-Newmont joint venture there. According to the terms of the settlement, Uzbekistan will pay Newmont $80 million and Newmont will relinquish its stake in the venture.
    On Tuesday, Newmont said it planned to issue $1 billion worth of senior debt, due in 2014 and 2017, to help fund a variety of operations. Last week the company said it plans to unwind its Newmont Capital merchant banking unit over the next year and sell off parts of its royalty and equity portfolio to raise cash for its core mining operations. The move will result in a $1.7 billion non-cash impairment charge to be taken against its second-quarter earnings.
    At the same time, the company announced it had closed out its gold hedge book at a cost of $578 million, leaving it completely unhedged in the market. Analysts were mixed on the impact of the decision. While it results in a $531 million pre-tax loss, it also frees the company from future price caps if gold prices continue to head higher.

    The mining concern eliminates its downside price protection for gold as it seeks to take advantage of the metal's rise


    by David Bogoslaw
    Story Tools


    It took five years of sustained increases in the price of gold, but Newmont Mining Corp. (NEM) has finally decided to call a halt to its bets that gold prices won't continue to rise.


    After the close of trading on July 5, Newmont said it had eliminated its entire 1.85 million ounce hedge position on its gold production and that it was discontinuing its merchant banking business as a separate unit.


    The Denver company spent $578 million in June to buy back all of its price-capped forward sales contracts, for which it will take a pre-tax loss of roughly $531 million, after reversing $47 million in deferred revenue that was recognized previously.


    Newmont is shutting down its merchant bank operations as it sells portions of its royalty and equity portfolio, which will allow it to focus on improving gold production. It expects to incur a non-cash impairment charge of about $1.7 billion, which will be reported as part of its discontinued operations in the second quarter.


    Relative to other gold producers, Newmont has historically been one of those with the least amount of hedges. But it has arrived at its decision to jettison its entire hedge book fairly late in the game, two to three years after lifting hedges became an industry trend, said Victor Flores, senior analyst at HSBC Securities USA Inc. Other producers who had much larger hedge positions have been much more aggressive in reducing them in the past few years, he said.


    Five years ago, when prices were depressed around $270 per ounce amid relentless selling of reserves into the market by central banks, the industry had a greater need to sell production forward at fixed prices. In a news release, the company said it was re-committing to enabling its shareholders to benefit from the uptrend in gold prices.


    Considering how little of its production Newmont had hedged – less than half a year's worth of production and just 2% of its 90 million ounces in gold reserves – Flores called the move more cosmetic than anything else.


    He said it was an effort by Richard O'Brien, who became Newmont's president and chief executive on July 1, to jumpstart the company, "a fairly safe way to put a bit of zing in the stock," which has lagged recently.


    The central problem that O'Brien needs to address is the company's declining production profile, Flores said.


    "They haven't developed enough of their own properties to keep the production profile flat to growing, as opposed to flat to declining," he said.


    Since the three-way merger in 2002 between Newmont, Normandy Mining Ltd. and Franco-Nevada Mining Corp., which gave birth to the present company, it has been less aggressive in pursuing mergers and acquisition than had been expected, says Flores. It's O'Brien's job now to reverse the company's conservative bent.


    With gold prices substantially higher than they were three or four years ago, however, acquisitions have become much more expensive to do.


    "On a relative basis, [Newmont's] shares have declined as the shares of potential acquisition targets have risen," Flores said.


    In a research note on July 6, RBC Capital Markets said the cash Newmont raises by selling its merchant holdings should more than offset the $578 million Newmont spent to buy back its hedges and will bolster the company's ability to invest an estimated $1.9 billion in capital expenditures this year and make acquisitions.


    Newmont is likely to hold onto its 18.9% stake in Gabriel Resources, its 15.4% interest in Miramar Mining and a 9.7% interest in diamond-producer Shore Gold, but it could sell some of its estimated 30 million units of the Canadian Oil Sands, according to RBC.


    Based on Newmont's lifting of its gold hedges, RBC raised its 2008 earnings forecast to $1.17 from 76 cents a share and boosted its cash flow projection to $3.54 from $3.14 a share.


    Flores has a neutral rating on the stock and his target price is $45 a share. Newmont shares traded 5.6% higher on July 6, closing at $41.78.

    Analyst opinions on stocks making headlines Friday


    Newmont Mining (NEM; $40.81)


    Retains 3 STARS (hold)


    Analysts: L. Larkin, S. Benway-CFA


    Newmont announces that with the elimination of its 1.85M-ounce gold hedge position, it is now fully unhedged. The move will result in a $531 million second quarter charge. It also plans to discontinue its Merchant Banking unit and sell some of those assets, leading to a second quarter impairment charge of about $1.7 billion. We see these moves as steps to position Newmont as a pure play on gold price movements. Although we expect gold prices to trend higher, our recommendation is based on valuation, reflecting a stagnant production profile we see for Newmont in coming quarters. We maintain our $45 12-month target price.

    Last Update: 9:02 PM ET Jul 10, 2007


    Jul 10, 2007 (Dow Jones Commodities News via Comtex) -- The following is a press release by the company:
    DENVER, July 10 --Newmont Mining Corp. (NEM) today announced its intention to offer, in the aggregate, $1.0 billion of Convertible Senior Notes. The Company intends to use the net proceeds from the offering to repay all amounts outstanding under its corporate revolving credit facility, to enter into the convertible note hedge and warrant transactions described below, and for general corporate purposes. Together with other pending initiatives, including the anticipated realization of value from certain non-core Merchant Banking assets, the Company expects this will provide capital funds to complete Boddington in Australia and the gold mill at Yanacocha in Peru, as well as provide for the potential development of future projects such as Conga in Peru, Akyem in Ghana, and other corporate opportunities.
    The Company intends to issue Convertible Senior Notes due 2014 and 2017, each in the principal amount of $500 million, through an offering to qualified institutional buyers under Rule 144A of the Securities Act. Upon conversion, holders will be entitled to receive cash for that portion of the value of the common stock into which the notes are convertible up to the principal amount of the notes, and excess conversion value, if any, will be satisfied at the Company's election in cash, common stock or a combination of cash and common stock. Newmont also expects to grant the initial purchasers an option to purchase up to an additional $75 million of each of the 2014 and 2017 Senior Convertible Notes to cover over-allotments.
    In connection with the offering of the notes, the Company expects to enter into convertible note hedge transactions with affiliates of one or more of the initial purchasers (the "hedge counterparties") and intends to use a portion of the net proceeds of the offering to pay for the cost of the convertible note hedge transactions. The convertible note hedge transactions are expected to reduce potential dilution to Newmont common stock upon conversion of the notes. The Company also expects to enter into separate warrant transactions with the hedge counterparties, which would result in additional proceeds to the Company and partially offset the cost of the convertible note hedge transactions. The warrant transactions could result in dilution to Newmont common stock in the event that, at exercise, the market value per share of Newmont common stock, as measured under the terms of the warrant transactions, exceeds the applicable strike price of the warrant transactions. If the initial purchasers of the notes exercise their over-allotment options, the Company expects to enter into additional convertible note hedge and warrant transactions.
    In connection with the convertible note hedge transactions and the separate warrant transactions, the hedge counterparties have advised the Company that they, or their affiliates, expect to enter into various derivative transactions with respect to Newmont common stock concurrently with, or shortly after, the pricing of the notes and may enter into, or may unwind, various derivatives and/or purchase or sell Newmont common stock in secondary market transactions following the pricing of the notes. These activities could have the effect of increasing, or preventing a decline in, the price of Newmont common stock concurrently with or following the pricing of the notes. If the hedge counterparties or their affiliates were to unwind various derivatives and/or purchase or sell Newmont common stock in secondary market transactions prior to the maturity of the notes, such activity could adversely affect the price of Newmont common stock or the settlement amount payable upon conversion of the notes.
    This notice does not constitute an offer to sell or the solicitation of an offer to buy securities. Any offers of the securities will be made only by means of a private offering memorandum. The notes and the shares of Newmont common stock issuable upon conversion have not been, and will not be, registered under the Securities Act or the securities laws of any other jurisdiction and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.

    Last Update: 8:26 AM ET Jul 11, 2007


    Jul 11, 2007 (Dow Jones Commodities News via Comtex) -- DOW JONES NEWSWIRES
    Newmont Mining Corp. (NEM) said it expects 2007 gold sales of 5.2 million to 5.6 million equity ounces at $375 to $400 an ounce.
    The Denver mining company projected copper sales at 210 million to 230 million equity pounds at $1.10 to $1.20 a pound.
    Consolidated capital expenditures are expected to be between $1.8 billion and $2 billion, Newmont said.

    Last Update: 11:54 AM ET Jul 11, 2007


    DENVER, Jul 11, 2007 (Dow Jones Commodities News via Comtex) -- Gold producer Newmont Mining Corp. (NEM) on Wednesday affirmed its forecast for 2007 sales of 5.2 million to 5.6 million equity ounces and said second-quarter results would likely be similar to those of the first quarter.
    The Denver-based company, one of the world's largest gold producers, said costs applicable to sales would likely be $375 to $400 per ounce.
    Chief Executive Richard O'Brien said the temporary closing of the Midas mine in northeast Nevada after a June 19 accident that left one miner dead would not likely affect the company's forecasts for the rest of the year. He did not say how long the mine would remain closed.
    Newmont also affirmed its forecast for 2007 copper sales of 210 million to 230 million equity pounds, with costs applicable to sales of $1.10 to $1.20 per pound.
    The company said it still expects consolidated capital expenditures for 2007 to be between $1.8 billion and $2 billion.

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