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Jeb Handwerger: Newmont Buys Fronteer Gold, Miners In Nevada Gaining Investment Interest
Feb. 09, 2011 02:34PM PST
Precious MetalsJeb Handwerger writes on the daily markets that even though January 2011 brought a lot of profit-taking to mining stocks and precious metals, the leadership of Newmont (NYSE:NEM) has used this pullback in prices to purchase one of his long-term favorite recommendations, Fronteer Gold (AMEX:FRG).
Jeb Handwerger writes on the daily markets that even though January 2011 brought a lot of profit-taking to mining stocks and precious metals, the leadership of Newmont (NYSE:NEM) has used this pullback in prices to purchase one of his long-term favorite recommendations, Fronteer Gold (AMEX:FRG).
The editorial is quoted as saying:
I believed Fronteer was a great candidate for a takeout. Newmont has gone straight ahead, believing in Fronteer’s three major projects in Nevada and buying Fronteer out for a 37% premium. Newmont believes that the gold price is moving much higher, and it is using its large cash position to find growth. It is much cheaper to buy a quality asset rather than go out and find it yourself. Now Newmont has really made a huge transition to have high grades assets.
