Newmont Mining
(ASX:NEM) chief executive Richard O'Brien said in an interview in Toronto overnight that he expects the rally in the gold price to lose momentum at some point but that the forces that have driven the price rally – hedge funds and institutional buyers - are still largely in place.
Mr O’Brien said its unlikely gold prices will drop for long because of the increasing appeal of the commodity as an alternative to U.S. dollar assets and the decline in global gold resources.
He also said that the company will not sell off its non-core mines unless it needs to bolster its balance sheet as some other gold miners have done and advised that the new Boddington mine in Australia was running at 90 percent capacity within 2 weeks of reaching commercial production.
Looking at the last 5 years of results, Newmont Mining reported a sharp loss in 2007 but profits bounced back in 2008.
