JP Morgan Comments On Newmont Mining Ahead Of Its Investor Day

A major driver of Newmont Mining's NEM expansion plans is the exploration success at the Subika underground mine which is now expected to add 350koz pa. This deposit was thought until quite recently to only contain about 400,000oz, but has now been expanded to +3moz down to 800m, and the deposit is still open. This has allowed the mine to plan a plant expansion. JP Morgan continues to be excited by potential in Peru. The large gold copper porphyry looks interesting if a suitable treatment method can be found. According to JP Morgan, the last 18 years of mining has only mined the oxidized skin of these deposits, a little like the chocolate sauce on the sundae. JP Morgan feels last week's successful visit to Newmont's Ghanaian operations will make investors with a negative view of the stock to be more cautious. JPM expects the stock to have a positive week and it reiterates its Overweight rating and $79 PT. NEM closed Friday at $54.37