{"id":537798,"date":"2010-04-21T10:15:00","date_gmt":"2010-04-21T14:15:00","guid":{"rendered":"e2249889-c78b-43e3-9643-b1d7d4aa587b:426213"},"modified":"2010-04-21T10:15:00","modified_gmt":"2010-04-21T14:15:00","slug":"lihir-gold-would-be-good-fit-for-newmont","status":"publish","type":"post","link":"https:\/\/mereja.media\/index\/537798","title":{"rendered":"Lihir Gold would be good fit for Newmont"},"content":{"rendered":"<p>Australian gold miner <a href=\"http:\/\/www.financialpost.com\/markets\/company\/index.html?symbol=LGG&amp;id=19360248\" >Lihir Gold Ltd<\/a>. is on the block after it received a US$8.45-billion hostile bid from <a href=\"http:\/\/www.asx.com.au\/asx\/research\/companyInfo.do?by=asxCode&amp;asxCode=NCM\" >Newcrest Mining Ltd<\/a>. According to Scotia Capital analyst David Christie, <a href=\"http:\/\/www.financialpost.com\/markets\/company\/index.html?symbol=NEM&amp;id=276522\" >Newmont Mining Corp<\/a>. should now look to acquire Lihir.<\/p>\n<p>In a note to clients, Mr. Christie wrote that Lihir could immediately increase Newmont&#39;s production by 9%, and drop equity cash costs by 2%. That would bring Newmont&#39;s cash costs below US$500 an ounce.<\/p>\n<p>&quot;In our view, the Lihir mine would be a good fit for Newmont&#39;s Australia-Asia operating group, and [Lihir&#39;s] Bonikro mine and vast exploration ground would fit well into Newmont&#39;s African operating unit,&quot; he wrote.<\/p>\n<p>Newmont needs to consider acquisitions because it has a negative growth profile. Mr. Christie wrote that production is expected to decline by 8.7% in 2015 compared to 2010. However, the company is also in a good position for M&amp;A activity with US$5.8-billion in available liquidity, he noted.<\/p>\n<p>Mr. Christie initiated coverage on Newmont with a &quot;sector perform&quot; rating and a one-year target price of US$67.00 a share. He wrote that Newmont trades at a price-to-net-asset-value multiple of 1.98 times, which is well ahead of its large-cap gold peers at 1.49 times. However, Newmont is cheaper than its rivals on other metrics.<\/p>\n<p><a href=\"mailto:pkoven@nationalpost.com\">Peter Koven<\/a><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/network.nationalpost.com\/NP\/aggbug.aspx?PostID=426213\" width=\"1\" height=\"1\"><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Australian gold miner Lihir Gold Ltd. is on the block after it received a US$8.45-billion hostile bid from Newcrest Mining Ltd. According to Scotia Capital analyst David Christie, Newmont Mining Corp. should now look to acquire Lihir. In a note to clients, Mr. Christie wrote that Lihir could immediately increase Newmont&#39;s production by 9%, and [&hellip;]<\/p>\n","protected":false},"author":4061,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[],"class_list":["post-537798","post","type-post","status-publish","format-standard","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/537798","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/users\/4061"}],"replies":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/comments?post=537798"}],"version-history":[{"count":0,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/537798\/revisions"}],"wp:attachment":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/media?parent=537798"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/categories?post=537798"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/tags?post=537798"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}