Why Newmont Mining (NEM) Stock Is Down Today

NEW YORK (TheStreet) -- Newmont Mining (NEM) was falling 3% to $22.70 Tuesday following statements from Barrick Gold (ABX) CEO about merger talks with the mining company, and after gold prices fell to a 15-week low.

Speaking to Bloomberg Barrick Gold CEO Jamie Sokalsky said that talks to merge with Newmont Mining are "finished." Sokalsky said Barrick is focused on working as a standalone company. Barrick is interested in cooperating with Newmont, however, where the two companies running operations near one another in an effort to cut costs.

Also affecting Newmont stock is the recent drop in gold prices. Prices for gold fell 2% to a 15-week low of $1,265.50 an ounce Tuesday despite increased violence in Ukraine. According to Forex.com that "is a telling sign that more weakness may be on the horizon" for gold prices.

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"We rate NEWMONT MINING CORP (NEM) a SELL. This is driven by a number of negative factors, 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."

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