NEW YORK (TheStreet) -- Shares of Newmont Mining Corp. (NEM) are declining by -2.29% to $24.74 in late afternoon trading today as gold prices fell for a second day in a row, the Wall Street Journal reports.
Gold stocks began plummeting on Monday when the gold futures for August fell 2%, the "sharpest drop" in seven months, the Journal added.
However, Newmont may be facing additional issues as the Indonesian government threatens to cancel Newmont's mining contract if the U.S.-based company doesn't withdraw its request for international arbitration relating to Indonesia's export taxes, the Globe and Mail reports.
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Newmont said it had to stop operations at the Indonesian mine because the government has yet to issue the company an export permit.
Newmont also said its state revenue has declined as a result of the stoppage.
Separately, 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."