UPDATE: BMO Capital Markets Downgrades Newmont Mining Corp. to Market Perform, Lowers PT on Multiple Challenges Ahead

In a report published Monday, BMO Capital Markets analyst David Haughton downgraded the rating on

from Outperform to Market Perform, and lowered the price target from $55.50 to $35.00. In the report, BMO Capital Markets noted, “BMO Research continues to assume the development pipeline for Newmont with Lone Canyon (>30% IRR at spot ignoring sunk costs), Akyem (>40%) and Merian (~11%), but removed Conga development some time ago. Newmont has announced steps to cut G&A costs (one-third of its Colorado workforce this quarter). However, BMO Research forecasts balance sheet pressure at prevailing metal prices in the absence of further cost reductions, capital conservation (~US$17B for 2013-2020) and FCF relief while the dividend is linked to the gold price.” Newmont Mining Corp. closed on Friday at $27.43.