04:28 PM EST - Newmont Mining Corp. : of Canada's battered shares (TSX:NMC) rose about 5.6 per cent Friday after its parent firm announced late Thursday it will focus on developing its core gold assets and wind up the Newmont Capital division, through either a public offering or private sales. It will also eliminate its entire gold-price hedging position and post more than US$2 billion in accounting charges. The Canadian subsidiary's shares rose $2.32 to C$44.09 on the Toronto Stock Exchange Friday aternoon, while shares in the parent firm, Denver-based Newmont Mining Corp., were up 5.8 per cent to $2.30 to US$41.88 on the New York Stock Exchange. Both companies' share prices hit 52-week lows last week and remain far below their highs established in early 2006. Barry Cooper, a CIBC precious metals analyst, said he increased his price target by $2, to $45 a share, based on his expectations of increased cash flow in 2008 due to the elimination of the pre-sold gold contracts, which were priced below operating costs. Cooper said the breakup of Newmont will make both companies more valuable.
shares NMC:CA are trading up two dollars sixteen cents at $43.93.
