UPDATE: Jefferies Lowers PT on Newmont Mining Following 1Q13 Earnings Miss

In a report published Wednesday, Jefferies analyst Peter Ward reiterated a Hold rating on Newmont Mining Corp.

, but lowered the price target from $32.00 to $30.00. In the report, Ward noted, “Despite the sharp selloff, we remain confident using Newmont shares as a source of funds. A mining company is only as good as the quality and quantity of its reserves. We believe NEM has a short mine life and that costs will likely rise materially going forward...Newmont's reported EPS of $0.71 was 9% below consensus. Lower gold production, increased gold cost of sales, weaker pricing, and shipping delays were a drag on sales. Gold cost of sales increased 5% q/q due to higher mining and milling costs and lower by-product credits, while gold production and realized prices fell 7% and 4% q/q, respectively. Lower gold mill grades and poor recoveries, primarily at North American operations, contributed to the overall low production for the quarter. Partially offsetting these headwinds were lower copper production costs and higher copper production. The company saw a 17% improvement in copper cost of sales and a 2.3% copper production increase owing to higher copper grades at Boddington.” Newmont Mining Corp. closed on Tuesday at $32.40.