Boston, MA 10/14/2013 (wallstreetpr) – As the gold market went cold, Newmont Mining Corp (NYSE:NEM) pegged hopes on copper to stay out of the red line. But it now seems even copper doesn’t behave well. The company has announced trimming its earlier production target in 2013.
In a previous forecast, NEM has 150-170 million pounds copper output target for this year. But now it has a new target of 135-145 million pounds of copper. The company has however left its gold forecast intact at 4.8-5.1 million ounces this year.
NEM blames lower than expected throughput in Boddington mine, Australia. Also, lower than expected ore grade at Batu Hijua in Indonesia is blamed for the drop in the company’s copper production expectation.
In the last quarter, NEM reported production of 34 million pounds copper and 1.3 million ounce of gold.
Following these production cuts by NEM, its stock has also suffered a cut in target price. Credit Suisse has slashed its target on the stock to $31 from the previous $32 in a report to investors.
So far, one researcher has a “sell” rating on the stock against six “hold” and two “buy” ratings.
The U.S.-based gold and copper miner has a market cap of $12.75 billion and year’s share value range of $56.38 high and $25.50 low. The company has set October 31 as the date for its Q3.13 earnings release, followed by a conference call on November 1, 2013.
NEM is majorly in gold production and holds assets in the U.S., Peru, Ghana, Mexico, Australia, New Zealand and Indonesia. By Dec. 31, last year, the company had an aggregate land position of about 29K square miles and probable gold research at 99 million ounces.
The company’s copper production fields span Nevada in the U.S., Yanacocha and Conga in Peru, La Herradura in Mexico, Ahafo and Akyem in Ghana and some smaller operations in New Zealand and Australia.