Why Newmont Corporation Stock Just Popped

• Scotiabank conscionable raised its terms people connected Newmont banal by 33%.

• Newmont costs little than 20x earnings, and is increasing net astatine astir 60%.

• 10 stocks we similar amended than Newmont ›

Newmont Corporation (NYSE: NEM) banal jumped 2.6% done 11:35 a.m. ET Monday aft concern slope Scotiabank raised its terms people connected the mining banal a whopping 33%, to $152 per share, with an outperform standing (i.e., buy).

Gold prices surged past the $5,000 people this morning, hitting $5,070.70 per ounce astatine past report. The terms of this shiny metallic is up much than 83% implicit the past twelvemonth -- and indeed, up much than 17% conscionable truthful acold this year!

That's evidently bully for a golden mining banal similar Newmont, and Scotiabank says it is updating its terms targets for each golden and precious minerals stocks it covers, successful effect to the high-flying prices, arsenic TheFly.com reports today.

In different news, Reuters reports contiguous that Newmont rival Barrick Mining (NYSE: B) is trying to rotation disconnected its North American assets. Newmont has the close of archetypal refusal to bargain the remainder of Barrick's Nevada Gold Mines project, which is Barrick's main North American plus -- and already 38.5%-owned by Newmont. Theoretically astatine least, Newmont's instrumentality successful the plus could empower it to forestall Barrick's spinoff (impeding a rival) -- oregon to bargain the plus if it wants it.

Newmont's doing conscionable good as-is, by the way. Last 4th alone, the company's gross changeable up 20% -- and its net astir doubled.

With the banal trading nether 20 times earnings, and net expected to turn much than 58% annually implicit the adjacent 5 years, Newmont is successful an fantabulous presumption to nett from the skyrocketing terms of gold, whether oregon not it buys the remainder of Barrick's Nevada property.

Investors successful Newmont banal should bash rather well, also.

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