Sounds like a Gap That Junior Miners Could Fill...
Interesting headline late yesterday...
Newmont sees lower gold sales until 2008
Newmont announced today that equity gold sales are expected to decline from previous forecast for 2006 and 2007 largely due to a series of political, economic and physical events which reduced gold production levels.
...(snip) ...
For 2006, Newmont now expects gold sales between 5.6 and 5.8 million ounces with costs of $290 to $310 per ounce. Newmont’s previous July expectations for 2006 were set at 5.9 million to 6.2 million ounces.
Longer-term, Newmont says its outlook is positive. But this sounds to me like Newmont has every reason to snap up a junior miner to fill that gap in its production -- and since gold prices have corrected in recent months, Newmont can get a good junior at a bargain price.
In other words, I'm looking for another round of consolidation to sweep the industry, with Newmont as the tip of the iceberg.
Newmont sees lower gold sales until 2008
Newmont announced today that equity gold sales are expected to decline from previous forecast for 2006 and 2007 largely due to a series of political, economic and physical events which reduced gold production levels.
...(snip) ...
For 2006, Newmont now expects gold sales between 5.6 and 5.8 million ounces with costs of $290 to $310 per ounce. Newmont’s previous July expectations for 2006 were set at 5.9 million to 6.2 million ounces.
Longer-term, Newmont says its outlook is positive. But this sounds to me like Newmont has every reason to snap up a junior miner to fill that gap in its production -- and since gold prices have corrected in recent months, Newmont can get a good junior at a bargain price.
In other words, I'm looking for another round of consolidation to sweep the industry, with Newmont as the tip of the iceberg.
Check out my new gold and energy blog at MoneyAndMarkets.com
posted by Sean Brodrick @ 10:13 AM
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