Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Newmont Mining(NEM) & Newmont Gold(NGC) -- Ignore unavailable to you. Want to Upgrade?

To: ahhaha who wrote (221)	5/25/1999 10:35:00 PM
From: The Barracuda™	Read Replies (1) \| Respond to of 587

In the movie Jurassic Park, just before the t-rex attack, a glass of water trembled. Could the option activity in NEM be that glass of water? From the STREET.COM (partial excerpt) STOCK NEWS >> OPTIONS BUZZ Call-Buyers Rediscover Oil and Cyclicals By Erin Arvedlund Staff Reporter 5/25/99 1:58 PM ET After a day of tech-related storms on Monday, oil-service options crept into view Tuesday along with the molasses-slow rotation into cyclicals and even some commodity issues. "From an institutional standpoint, these stocks are underowned, and we're seeing some big call-buyers coming into natural gas, oil service, even steels," said the head of a large institutional options desk Among the oil stock options, he added, "we've got Triton Energy (OIL:NYSE), Noble Affiliates (NBL:NYSE) and Newmont Mining (NEM:NYSE) on the boards today. These are the stocks that have really underperformed but make real money, with real P/Es."

To: ahhaha who wrote (221)	5/26/1999 12:56:00 AM
From: baystock	Read Replies (1) \| Respond to of 587

OK I double checked my calculations and I agree with your $3 income figure. But I did observe that the Batu Hijau project is very heavily a copper project. At $1.20 Cu and $380 Au the incremental profits from Copper are 8 times that of Gold from this project. This will cause around 25% of NEM's total income to be from Copper. This may negatively impact the future PE multiple of NEM since the market is willing to pay a higher multiple for pure gold mining companies than it does for pure copper ones. But I am not sure where a 25%/75% mix fits in terms of market perception.