Newmont Mining: Not Good as Gold

Not impressed with a November bounce in the price of gold, analysts tracking Newmont Mining (NEM Quote) do not expect the company to establish an uptrend in earnings in the near future.

The consensus estimate calls for Newmont, which suffered a deficit of $2.13 per share in fiscal 2007, to recover to a gain of $2.15 a share this year before sliding in profitability to $1.76 per share next year.

Newmont's stock price, which peaked in the low $60s in 2006 and again approached that level early this year, slumped to the low $20s in late October. The share price has drifted in recent days with little indication of any buying enthusiasm for them. A gain in the price of gold from the $720-per-ounce range to the $815 level during November pulled the mining company's stock price back to $33.65 at month's end. ...