NEW YORK (TheStreet) -- Shares of Newmont Mining Corp. (NEM) are up 2.31% to $26.08 following remarks by CEO Gary Goldberg who said about a possible but slowed merger with Barrick Gold Corp. (ABX) that the company was "open to opportunities."
Yesterday, Newmont reported 2014 first quarter earnings after the market close. Its profits slid 63% due to lower metal prices, to $117 million, or 23 cents per share, from $314 million, or 63 cents per share, in last year's first quarter.
Merging the two firms, which have a combined market value of more than $30 billion, would create a mega-miner with operations ranging from Indonesia to Africa and throughout North and South America, the Wall Street Journal reported.
In coming together, both sides are looking at savings of $1 billion, the Journal has reported, adding that most analysts believe it would be closer to $500 million.
TheStreet Ratings team rates NEWMONT MINING CORP as a Sell with a ratings score of D+. TheStreet Ratings Team has this to say about their recommendation:
"We rate NEWMONT MINING CORP (NEM) a SELL. This is driven by several weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, weak operating cash flow, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share."