UPDATE: Deutsche Bank Downgrades Newmont Mining Corp. to Sell, Lowers PT on More Cautious Sector View

In a report published Monday, Deutsche Bank analyst Jorge Beristain downgraded the rating on Newmont Mining Corp.

from Hold to Sell, and lowered the price target from $40.00 to $24.00. In the report, Beristain noted, “Recent performance has been driven by rising gold prices, delivery of strong quarterly earnings and implementation of innovative gold-linked dividend. Medium-term performance should be driven by Akyem (Africa), resumption of phase 6 mining at Batu Hijau, and recently acquired Long Canyon (Nevada) projects, which should boost gold output from 5.0m oz in 2012 to 6.0m oz in 2018. The company's Conga project in Peru has potential to add another 325m oz (capex ~$5bn), but is facing strong opposition from local community. Newmont's gold-linked dividend was enhanced in 2011. Given our more cautious view on the gold sector, we are downgrading Newmont to Sell from Hold on limited near-term growth opportunities and relative higher cost structure than other gold producers in our coverage universe.” Newmont Mining Corp. closed on Friday at $32.98.