first of all the cdn. energy stocks are reporting earnings this week, so will update all of them next week, maybe sooner. would rate them in the short term holds.
they may get a bounce if the Alberta government only raises royalties a small amount (compared to what was suggested by government report, made by (idiots) not even in the industry and energy consultant from Alalska.....yes you want to mirror Alaska....
anyways in the short term have written covered calls on most of my energy positions, ie...nov/dec.
this limits my upside but have picked up some good premiums....(cash off of the calls, to wait.)
Newmont is trading at 46.16 near its high of 48.42 and low of 38.01.
Newmont is one of the biggest gold companies, and when US investors want to increase their gold exposure they often buy Newmont.
Newmont would be rated a hold. though they are doing some postives moves there is some reasons for concerns...
before reading the rest of this book, there is about half dozen gold stocks would choose (mining) stocks over newmont...maybe more.
at one point, recently thought it may make a good short. however decided against it, the main reason if gold continues to rise:
1. they will make more earnings, cash flow
2. more important if gold shoots up $50 large US investors will make this one of their main investments. ie. large and liquid.
Recently they have decided to spin off Franco Nevada. it will be the biggest ipo this year on Toronto, double the size of LU LU lemon.
it will be over 1 billion ipo. Franco Nevada and Euro Nevada made many cdn. investors large amounts of money. they were based on Royalties, when a mine went into a production or needed funding they would step in exchange for a small royalty rate.
they were also developing a large gold mine (where most of their holdings were), Newmont bought them out.
Now Newmont needs cash to develop some of their properties, so they will spin out Franco Nevada. might be worth getting some on the ipo, however will not get all (more like a fraction).
so probably best to wait on Franco Nevada and see how the market values the company, over the next 3-6 months....maybe a good invesment going forward, (mine, energy royalties), just have to see the valuation.
Newmont could use the 1 billion because they bought Miramar mining for 1.5 billion. the main reason to buy Miramar is hope bay project in the cdn. artic.
the project has 10.6 million ounces, and this may be increased (probably) though there is much more drilling to do, couple of years.
Newmont paid about 130 ounce, then you have to get it out of the ground.
in 2003 miramr a study indicated 40 millin to build the mine and costs would then be 190 ounce.
however oil is now 3 times more expensive and steel, ect. have more than doubled. labour especially skilled costs have gone up sharply....also it may be difficult to find labour for the project.
if gold keeps going up, then the price may seem reasonable or even cheap....... still seems very expensive.
and costs probably will be double to the 2003 study....most are bullish on the deal, I should note.
this just shows how desperate sr. gold companies are to expand their declining gold reserves...... maybe a sign gold will continue to go up...
Newmont shareholders should hope so....
rate newmont a hold....should do well with increasing gold price, however better options.
at some time, a great short. when the gold run is over...... when is the big question.
thanks
selkirk
they may get a bounce if the Alberta government only raises royalties a small amount (compared to what was suggested by government report, made by (idiots) not even in the industry and energy consultant from Alalska.....yes you want to mirror Alaska....
anyways in the short term have written covered calls on most of my energy positions, ie...nov/dec.
this limits my upside but have picked up some good premiums....(cash off of the calls, to wait.)
Newmont is trading at 46.16 near its high of 48.42 and low of 38.01.
Newmont is one of the biggest gold companies, and when US investors want to increase their gold exposure they often buy Newmont.
Newmont would be rated a hold. though they are doing some postives moves there is some reasons for concerns...
before reading the rest of this book, there is about half dozen gold stocks would choose (mining) stocks over newmont...maybe more.
at one point, recently thought it may make a good short. however decided against it, the main reason if gold continues to rise:
1. they will make more earnings, cash flow
2. more important if gold shoots up $50 large US investors will make this one of their main investments. ie. large and liquid.
Recently they have decided to spin off Franco Nevada. it will be the biggest ipo this year on Toronto, double the size of LU LU lemon.
it will be over 1 billion ipo. Franco Nevada and Euro Nevada made many cdn. investors large amounts of money. they were based on Royalties, when a mine went into a production or needed funding they would step in exchange for a small royalty rate.
they were also developing a large gold mine (where most of their holdings were), Newmont bought them out.
Now Newmont needs cash to develop some of their properties, so they will spin out Franco Nevada. might be worth getting some on the ipo, however will not get all (more like a fraction).
so probably best to wait on Franco Nevada and see how the market values the company, over the next 3-6 months....maybe a good invesment going forward, (mine, energy royalties), just have to see the valuation.
Newmont could use the 1 billion because they bought Miramar mining for 1.5 billion. the main reason to buy Miramar is hope bay project in the cdn. artic.
the project has 10.6 million ounces, and this may be increased (probably) though there is much more drilling to do, couple of years.
Newmont paid about 130 ounce, then you have to get it out of the ground.
in 2003 miramr a study indicated 40 millin to build the mine and costs would then be 190 ounce.
however oil is now 3 times more expensive and steel, ect. have more than doubled. labour especially skilled costs have gone up sharply....also it may be difficult to find labour for the project.
if gold keeps going up, then the price may seem reasonable or even cheap....... still seems very expensive.
and costs probably will be double to the 2003 study....most are bullish on the deal, I should note.
this just shows how desperate sr. gold companies are to expand their declining gold reserves...... maybe a sign gold will continue to go up...
Newmont shareholders should hope so....
rate newmont a hold....should do well with increasing gold price, however better options.
at some time, a great short. when the gold run is over...... when is the big question.
thanks
selkirk
