My brother has a lot of Newmont stock, won't let go of any of it, and is now buying on what he considers a dip that may go even lower. They've been under a lot of environmental and labor rights fire, especially in Peru, but last year they were under scrutiny by Nevada lawmakers which is coming full swing in 2012. Newmont hasn't been fully audited in years, their own auditors massage the books to show losses, and for years they have been the beneficiaries of "regulatory capture" in Nevada (where agencies designed to act as watchdogs or look after public interests instead look after special or commercial interests. Mining has always been artificially favored in Nevada over all other industry - the only industry that is taxed on NET, rather than gross proceeds, and a small amount at that. Top that with govt. claims that they have been taking illegal deductions for years, and that amounts what looks on the surface like an actual crackdown. Yeah. Like those crackdowns on the Fed.
An insolvent Newmont is such a far-fetched notion, in my mind, that my guess is that the drop is artificial, partly a result of claiming lower production as a result of rising costs, which makes Newmont underpriced in my mind.
I'm not buying Newmont stock because I'm obsessed with physical, but if I was buying stock, I'd be as bullish on Newmont as my brother.
