NEM Indonesia Unscathed By Strike - Analyst Blog

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Newmont Mining Corp 's ( NEM ) output at its Batu Hijau copper and gold mine in Indonesia was unaffected after about 400 workers went on strike in a dispute over shifts.

Management and union representatives are in talks to resolve the dispute. The mine has more than 7,000 employees and contractors.

Batu Hijau, the nation's second-biggest copper mine, aims to produce around 275 million pounds of copper and 275,000 ounces of gold in 2011.

The Newmont strike comes at a time of heightened tensions within the Indonesian mining industry, as workers push for a greater share of profits.

Striking workers at Freeport-McMoRan Copper & Gold Inc. ( FCX ), which is Indonesia's giant Grasberg copper and gold mine, are currently involved in the country's longest-running mining dispute.

Miners at Grasberg, the world's second biggest copper mine, have been on strike since mid-September, driving Freeport McMoRan Copper & Gold Inc. to declare a force majeure on concentrate shipments last month.

Recently, Newmont reported adjusted net income of $635 million or $1.29 per share in the third quarter of 2011, up from last year's $533 million or $1.08 per share. The result exceeded the Zacks Consensus Estimate of $1.24 per share.

Total revenue was $2.7 billion, up 6% year over year.

Newmont reported attributable gold and copper production of 1.3 million ounces and 58 million pounds, respectively, in the quarter at costs applicable to sales ( CAS ) of $622 per ounce, and $1.10 per pound on a co-product basis.

The company faces stiff competition from Posco ( PKX ) and Arcelor Mittal ( MT ).

Newmont has a short-term (1 to 3 months) Zacks #3 Rank (Hold) and a long-term Neutral recommendation.


 
FREEPT MC COP-B ( FCX ): Free Stock Analysis Report
 
ARCELOR MITTAL ( MT ): Free Stock Analysis Report
 
NEWMONT MINING ( NEM ): Free Stock Analysis Report
 
POSCO-ADR ( PKX ): Free Stock Analysis Report
 
Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.



This article appears in: Investing , Business , Stocks
More Headlines for: CAS , FCX , MT , NEM , PKX


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