Newmont Mining "buy," target price raised

11/01/07 - UBS

NEW YORK, November 1 (newratings.com) - Analysts at UBS maintain their "buy" rating on Newmont Mining Corp (NEM), while raising their estimates for the company. The target price has been raised from $60 to $62.

In a research note published this morning, the analysts mention that the company has posted impressive 3Q results, with adjusted EPS substantially ahead of the estimates and the consensus. Newmont Mining has tightened its equity gold sales guidance for 2007 from 5.2-5.6 million ozs to 5.2-5.4 million ozs and has raised its costs applicable to sales guidance from $375-$400/oz to $400-$430/oz. The EPS estimates for 2007 and 2008 have been raised from $1.05 to $1.14 and from $2.13 to $2.16, respectively, to reflect revision in the depreciation, G&A, production and tax rate guidance.