Newmont Mining (NYSE:NEM) is about to release earnings. Ponder this Bear Case Scenario:
Newmont is a high cost producer of gold. Price drops hurt bad. Very Bad.
The Conga development in Peru is facing significant opposition and delays. It will be a long time before significant positive cash flow.
Given the massive size of existing operations it will be difficult to expand any operations to significantly improve cash flow.
Newmont needs to come up with the next thing to continue being more than just another commodity play with expensive management.
George Gutowski writes from a caveat emptor perspective.