The Research Note Boosting Newmont Mining Stock

In a report published Monday, Credit Suisse analysts upgraded

from Neutral to Buy. The price target has also been raised from $26 to $30. The upgrade follows the success of the company's strategy to improve performance, since its new CEO took on the reins in 2013. Newmont Mining has been able to achieve operational consistency, a trend that the analysts expect to continue going forward. In addition, the company has also been able to achieve lower costs, driven by co-product accounting. The analysts believe that this cost savings is higher than the current perception in the market. Moreover, the company's current cash flow multiple does not reflect its longer-than-average reserve life. The balance sheet has also strengthened considerably. When the new CEO too charge in 2013, strategies to improve the underlying business were put in place, which focused on cost reductions, bolstering the portfolio with investments in internal opportunities, and creating shareholder value. The company is also working on divesting non-core assets, while also deleveraging the balance sheet. "NEM's Australian assets now benefit from lower cost structures which could open up new opportunities. Additionally, Tanami and Waihi have good potential to add reserves and resources and extend the mine life vs. current CS estimates," the analysts said.