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Monday, September 27, 2010

Newmont Mining (NYSE:NEM) Making its Move?

If you look at a chart of Newmont Mining's (NYSE:NEM) performance over the last five years, you find it less than inspiring, as until this summer, it hadn't reached the levels it has in the early part of 2006, when it hit $59.87 on January 9.

It took until June of 2010 for the largest U.S. gold miner to reach and surpass those levels, and it looks like they may have finally broken out, closing at $63.40 on Friday, after reaching as high as $65.40 on Wednesday.

With expectations high in the gold mining stocks because of the ongoing gold bull market, the largest gold mining companies have underperformed as the smaller companies have been outperforming them in a major way.

Major gold miners were held back because costs were increasing at approximately the same pace as prices.

Increasing gold prices are finally starting to overcome that, and it looks like Newmont may be in for a nice upward run.

Although Barrick Gold (NYSE:ABX) and Goldcorp (NYSE:GG) have outperformed Newmont over the last five years, over the last two or three years, when gold prices were soaring, they've been mostly flat as well.

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