October 29, 2009 07:11 PM UTC

Mining Industry "Dropping Like a Rock?"

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• by: ThillyWabbit

I’m not sure I agree with Kent Lambert’s economics.

Newmont Mining Corp. said Thursday that its profit more than doubled in the third quarter as the gold producer capitalized on favorable commodity prices and strong gold and copper sales.

Newmont’s profit climbed to $388 million, or 79 cents per share, compared with $191 million, or 42 cents per share, a year ago.

Revenue for the three months ended Sept. 30 jumped 50 percent to $2.05 billion from $1.37 billion, with copper sales more than quadrupling and gold sales rising steadily.

Indeed, Newmont generated a “record $1.1 billion in operating cashflow” according to their press release.

Looking at the stock prices of all the publicly-traded mining companies that operate in Colorado shows a similar trend.

The fact is that the weak dollar has made commodities the place to be, which is more stimulus than the mining companies could ever have hoped for in this economy.