Newmont Mining Corporation (NEM - Free Report) is eyeing Glencore Xstrata’s Peruvian copper mining project – Las Bambas – which the latter is selling in an auction, according to Financial Times. The newspaper stated that Newmont's Chief Executive has found an interesting prospect in Glencore's Las Bambas mine.
Newmont is reportedly viewing the project with interest as it approaches production. The mine is expected to produce 400,000 tons of copper annually.
Glencore agreed to sell Las Bambas in early 2013 to meet demands from China's antitrust authorities following its buyout of mining group Xstrata. A couple of China's largest mining companies have reportedly placed bids for the mine.
Newmont is a prominent player in the gold mining industry along with Barrick Gold Corp. (ABX - Free Report) , Goldcorp Inc. (GG - Free Report) and Kinross Gold Corporation (KGC - Free Report) . It has suspended construction at Conga, a mine in Peru, owing to local concern over water resources. The company is also considering selling its underground Midas mine in Nevada in order to focus on its core businesses by disposing its non-core assets. In this process, Newmont is working consistently in line with its strategy to deliver value to the shareholders.
A few days ago, Newmont signed a Letter of Intent to divest its Midas operation in Nevada to Waterton Global Resource Management, Inc. The proposed deal is subject to necessary regulatory and third party approvals along with execution and delivery of an acquisition agreement and completion of confirmatory due diligence.
Newmont released its second-quarter 2013 results in Jul 2013. The company reported adjusted (barring one-time items including non-cash asset impairment charges) loss of 10 cents a share, in contrast to last year’s earnings of 59 cents.
On a reported basis, the company posted a net loss (attributable to Newmont stockholders) from continuing operations of $2.1 billion or $4.21 per share in the quarter compared to a net income of $279 million or 56 cents per share a year ago.
Newmont’s revenues fell nearly 10.6% year over year to $1,993 million in the quarter.
Newmont currently maintains a Zacks Rank #3 (Hold).