The Globe and Mail reports in its Wednesday edition investors are losing patience with Newmont Mining and are urging it to either rekindle this
year's aborted deal with Barrick Gold or break itself
up. A Wall Street Journal item inside The Globe says all gold miners are facing lower
gold prices, high costs and declining
accessible gold grades. Newmont lost $2.5-billion (U.S.) last year, the biggest in its history, and
its share price has fallen by half since 2011. The problem is Newmont "hasn't communicated the specifics
of what they're doing," said Dan Denbow, a
portfolio manager for San Antonio-based fund USAA, which holds Newmont
shares. Joe Foster, a fund manager at
Van Eck Associates, says he wants to see both Newmont and
Barrick split into many pieces. "Both companies are too big for
their own good," he said. "I would
like to see them get smaller, not bigger." Newmont, which has traded on
the New York Stock Exchange since 1940 and will turn 94 next
year, is famously resistant to change. Newmont's head office shows posters that detail some of the failed takeover attempts. From 1980 to 1994, Newmont faced "tumultuous times" as it worked "to thwart five takeover
bids," the posters state.
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