Newmont Mining Corp. / NEM (NYSE)

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    Besides the likelihood of Japan and China shuffling their assets, the price could get a boost from weakening financial markets, lower interest rates that "lower the opportunity cost to owning gold," or even something as simple as declining supply confronting growing demand. With this is mind, Larkin has buy ratings on Barrick Gold (ABX) and Newmont Mining (NEM), the world's largest gold-mining outfits.


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    Prices for the yellow metal have been climbing again, and some pros see its strength continuing

    Southwestern Resources Corp. (SWG.T) announced positive drilling results at the Huacullo and Astana gold-silver zones at the Liam Property in Peru and said regional exploration has resulted in the discovery of Aluja, a new gold-silver zone.
    The Vancouver-based mineral-exploration company said the new discovery brings the total number of identified target areas at the Liam Property to 14.
    The Liam Gold-Silver Project, a 50/50 joint venture between Southwestern and Newmont Peru Ltd., covers 367,000 hectares in the Department of Cuzco in the southern portion of the Peru Tertiary Belt.

    By Rebecca Howard
    Of DOW JONES NEWSWIRES
    LIMA (MarketWatch) -- A sharp fall in Peru's recent gold production can be tied in part to social problems in this Andean nation, Compania de Minas Buenaventura SAA's (BVN) chief executive Roque Benavides said Tuesday.
    Peru's gold production fell 27% in October from the same month a year earlier, the government's statistics agency has said.
    Gold production at Minera Yanacocha SRL "has fallen around 33% this year and will fall another 33% or more next year. This is a product of social problems," Benavides told Dow Jones Newswires on the sidelines of a ceremony.
    Buenaventura holds a 43.65% share in Yanacocha, one of the biggest gold mines in the world. The mine is operated by Newmont Mining Corp., (NEM) with a 51.35% stake, while the International Finance Corp holds a 5.0% stake.
    According to Benavides, Yanacocha will produce 2.6 million ounces of gold this year and 1.6 million ounces of gold in 2007.
    In 2005 the mine produced 3,333,088 ounces of gold.
    "The fall has nothing to do with the mineral grade but it is the fact that we cannot go into a series of zones and every time we try to develop new projects anti-mining groups appear and make it increasingly difficult," he said.
    Mine Object Of Protests
    Yanacocha has been the object of a series of social protests in recent years.
    In 2004, for example, it was forced to shelve exploration plans in the nearby area known as Cerro Quilish, estimated to contain 3.7 million ounces of gold, after violent protests by farmers who believed the project threatened water supplies.
    According to Benavides, the mining sector as a whole is at risk.
    "We have begun to notice serious symptoms. The number of mining claims has declined over the past year," he said.
    He pointed to the fact that in October's gross domestic product number, the mining sector declined by 9.69% over the same month a year before.
    "It was affected by gold but later it will be affected by other minerals," he said.
    Benavides did laud efforts made by the current government to stave off social protests.
    "We must emphasize that this government and principally Prime Minister Jorge del Castillo has made the effort to confront the problems," he said.
    Del Castillo has been instrumental in negotiating solutions to several conflicts in the mining and hydrocarbons sectors.
    Among other things his office has created a high level commission to prevent social conflicts before they escalate into protests.
    Buenaventura also runs a number of other mines in Peru, mining mainly gold and silver.

    Last Update: 5:13 PM ET Dec 28, 2006


    LIMA (MarketWatch) -- Southern Copper Corp. (PCU) signed an agreement with the Peruvian government to make a voluntary payment for social programs, the company said in a statement Thursday.
    In August, President Alan Garcia's government brokered a deal with the mining industry under which companies agreed to make a voluntary "windfall" payment of more than $775 million over five years for social programs.
    The windfall payment was in response to protests by local communities that say they receive little or no benefit from mining in their areas, particularly against a backdrop of rising metals prices and higher production.
    The government unveiled the framework agreement late last week and is now signing individual deals with companies. It said it hopes to sign agreements with 43 companies.
    Agreements signed so far include those with Compania de Minas Buenaventura SAAs (BVN); Minera Yanacocha SRL, operated by Newmont Mining Corp. (NEM); base metals miner Compania Minera Milpo SAA (MILPOC1.VL); and copper-zinc miner Compania Minera Antamina SA, according to a spokesman from the ministry of energy and mines.
    Under the terms of the deal, companies will contribute 3.75% of their net profit after paying income taxes.
    The agreement stipulates, however, that companies already paying royalties of up to 3% on their sales will be able to deduct a significant percentage of those royalties from the voluntary payments.
    The agreement also sets reference prices for the different metals. Should the prices dip below those levels, companies won't be obligated to continue making the payments.

    Alcoa is expected to earn 67 cents, up 93% from the same period in the previous year, on $7.63 billion in revenue. Management has exceeded the consensus earnings estimate in four of the past six quarters yet has not delivered the same consistent performance each quarter as investor favorites such as Phelps Dodge (PD) and Newmont Mining (NEM).

    Holmes recommends buying in-the-money long-term options on Newmont Mining (NEM) if the price pulls back. He warns investors to avoid the out-of-the-money LEAPS, saying they're too risky.


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    Pierre Lassonde, chairman of the World Gold Council and outgoing president of Newmont Mining, predicts a range of $600 to $800 for gold next year, with an average of around $675.


    "I see the dollar continuing to go down against a basket of currencies, including the euro," says Lassonde, who adds that "80% of the value of gold is the dollar."


    Other bullish factors include declining mine production and rising investment demand, says Lassonde. He notes the Gold Shares ETF now holds more than 450 tons of bullion, and he's looking for continued investor diversification into the yellow metal.


    At the time of publication, Lassonde was long Newmont stock.

    NEW YORK (MarketWatch) -- Newmont Mining (NEM) was downgraded to underweight from neutral weight at Prudential, which cited weak earnings power even at optimistic assumptions for metals prices. Analyst John Tumazos also lowered his stock price target to $40 from $50. "While heretofore we have 'disbelieved' how badly the company's costs deteriorated, and expected a future cost turnabout, we have given up hope in large part," Tumazos said in a research note to clients. "We expect a higher gold price outlook owing in part to higher gold mining costs and output erosion, but the profit margin at those higher prices is much lower than envisioned several years ago."

    Again, gold stocks are no investors' delights at this time but they should be kept on the back burner until the market sorts itself out in the not too distant future.
    Illustrating this in the stock market, the chart of (NEM ) shows a declining trend since February 2006. However, there is s solid floor of support at 35.30 set by May 2004 and May 2006 lows where the risk/reward ratio would be favorable. Chart watchers look for strong upside potential with a defined downside risk with the latter being a stop loss point set just below support.

    VANCOUVER, Jan 18, 2007 /PRNewswire-FirstCall via COMTEX/ -- Rare Element Resources Ltd (CA:RES) announces that recent drilling by Newmont North America Exploration Limited, a subsidiary of Newmont Mining Corporation (Newmont), on the Company's Bear Lodge property in northeast Wyoming has encountered broad zones of gold mineralization in areas previously identified from surface sampling. This drilling was carried out under the Bear Lodge Newmont - Rare Element Resources gold-exploration venture. Summaries and comparisons of selected drill-intercept gold assays are presented below.
    "These wide intercepts with significant gold grades have added the important vertical dimension to the encouraging surface trench-sample results that we reported on 14 December 2006," said President & CEO Bill Bird.

    DENVER, Jan 25, 2007 /PRNewswire-FirstCall via COMTEX/ -- Newmont Mining Corporation (NEM: Newmont Mining Corporation) announced it will report 2006 fourth quarter and year-end earnings, as well as 2006 reserves, on February 22, 2007. A conference call will be held that day at 4:00 p.m. Eastern Time (2:00 p.m. Mountain Time) that will be carried on the Company's web site.


    Conference Call Details
    Dial-In Number 210.795.2680
    Leader Randy Engel
    Password Newmont
    Replay Number 203.369.3413


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



    The 2006 fourth quarter and year-end results, as well as related reserves, 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

    LIMA (MarketWatch) -- Production of copper in Peru could rise some 13% this year over last year, while gold production may drop by around 13%, the head of Peru's National Society of Mining, Petroleum and Energy said Wednesday.
    "Speaking of copper, we expect an increase in production on the order of 13%, mainly due to a planned increase in operations at Cerro Verde," society president Ysaac Cruz said in a radio interview.
    "On the other hand, we expect a decline in production of gold of also about some 13%, a consequence of some exploration and expansions that couldn't be carried out," he added.
    Peru's output of copper reached 952,162 metric tons in the December to November, 2006 period, according to the most recent figures from the Energy and Mines Ministry.
    Gold output in the first eleven months of last year reached 187,571 kilograms.
    Mineral production has become a motor of the Andean nation's economic growth, with a number of new mines opening in recent years.
    Copper miner Sociedad Minera Cerro Verde SAA (CVERDEC1.VL) currently operates open-pit mines near the southern Andean city of Arequipa, and expects to complete an $850 million expansion this year.
    Peru is also home to other big copper miners, such as Southern Copper Corp.(PCU) and Minera Antamina SRL.
    Peru's largest gold producer is the giant Yanacocha mine, located in northern Peru. Production there has been falling due in part to the inability of the company to access some new deposits due to community opposition.
    Newmont Mining Corp(NEM) has a 51.35% stake in Minera Yanacocha, while Peru's Compania de Minas Buenaventura SAA (BVN) holds a 43.65% share.

    The world's largest mining companies are turning to the U.N. and the World Bank in an attempt to prevent China freezing them out of Africa, according to The Times's Web site on Monday.
    The heads of more than a dozen mining companies, representing assets of more than $700 billion, met in secret at the World Economic Forum at Davos last week, according to the newspaper.
    The group, dubbed the "governors", met at the Hotel Fluela on Thursday in a six-hour session covering all major issues facing the mining industry, the newspaper writes.
    Among those present were Paul Skinner, the chairman of Rio Tinto PLC (RTP); Tony Trahar, chief executive of Anglo American PLC (AAUK); Jonathan Oppenheimer, chairman of De Beers; Alexei Mordashov, chairman of SeverStal JSC (CHMF.RS), and Wayne Murdy, chairman and chief executive of Newmont Mining Corp. (NEM), according to the newspaper.
    One of the most pressing issues facing the industry is competition from state-owned Chinese companies, which are signing deals in Africa and freezing out Western miners, according to the newspaper.

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