NEW YORK (TheStreet) -- Shares of Newmont Mining Corp. (NEM) are lower -2.48% to $23.99 following a report saying the gold producer may have to cut production at its Batu Hijau gold and copper mine in Indonesia.
The company is currently in talks with the Indonesian government over export permits and taxes but will have to halt production at the mine in June if these issues stay unresolved, Reuters reports.
In January, the government levied a tax on copper concentrate exports.
Newmont Mining is arguing that the law contradicts the contract signed between the company and the government which exempts the firm from new taxes.
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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 multiple 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."
Highlights from the analysis by TheStreet Ratings Team goes as follows: