INVESTOR NOTICE: MURRAY, FRANK & SAILER LLP HAS FILED A SHAREHOLDER CLASS ACTION AGAINST NEWMONT MINING CORP - NEM
New York, NY (PrimeZone) June 17, 2005 - Murray, Frank & Sailer LLP has filed a class action lawsuit in the United States District Court for the District of Colorado on behalf of shareholders who purchased or otherwise acquired the securities of Newmont Mining Corp (“Newmont” or the “Company”) (NYSE: NEM) between July 28, 2004 through April 26, 2005, inclusive (the “Class Period”).
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The complaint alleges that during the Class Period Newmont and certain of the Company's executive officers issued materially false and misleading financial statements to the investing public regarding its financial outlook in violation of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b 5 promulgated thereunder.
Newmont is based in Denver, Colorado, and describes itself as the world’s largest Gold producer. The Company has significant mining operations in the United States, Australia, Peru, Indonesia, Canada, Uzbekistan, Bolivia, New Zealand, Ghana, and Mexico. Throughout the Class Period, defendants made repeated positive statements about the Company’s operations and financial expectations. The true facts, however, which defendants knew or recklessly disregarded and concealed from the investing public during the Class Period, included the following: (a) Newmont had been processing only stockpiled low-grade ore at certain mines, which costs more to process; (b) Newmont’s costs for commodities used in mining had increased, increasing total production costs and cash production costs; (c) Newmont overstated the amount of copper and gold it could extract in 2005; and (d) as a result of operating difficulties in first-quarter 2005, Newmont’s cash generation had declined by 50% and its exploration costs would significantly increase. On April 26, 2005, the Company disclosed that its Q1 2005 earnings would fall short by two-thirds of analysts’ expectations based on the Company’s frequent guidance and investor presentations. Unbeknownst to investors, Newmont’s Peruvian, Indonesian, Australian and New Zealand mines had grossly underperformed.
This news shocked the market, causing Newmont’s stock price to fall precipitously from its April 26, 2005 closing price of $40.25 per share to less than $38 per share on April 27, 2005, on extremely high volume - approximately 300% of Newmont’s average daily trading volume. Meanwhile, because the Company’s stock had traded at inflated prices throughout the Class Period, Newmont was able to place over $600 million of notes in March 2005, only weeks before the truth about the Company’s operational and financial difficulties would be disclosed.
Murray, Frank & Sailer LLP and its predecessor firms have devoted its practice to shareholder class actions and complex commercial litigation for more than fifteen years and have recovered hundreds of millions of dollars for shareholders in class actions throughout the United States.
If you purchased or otherwise acquired Newmont securities on any world exchange between July 28, 2004 through April 26, 2005, and sustained damages, you may, no later than August 8, 2005, move the Court to serve as lead plaintiff. Shareholders outside the United States may also join the action, regardless of which exchange was used to purchase the securities. To serve as lead plaintiff, however, you must meet certain legal requirements. You can join this class action as lead plaintiff online at http://www.murrayfrank.com/CM/NewCases/NewCases.asp. If you would like to discuss this action, this announcement, or your rights and interests, please contact plaintiff’s counsel Eric J. Belfi or Christopher Hinton of Murray, Frank & Sailer LLP.
Murray, Frank & Sailer LLP
Eric J. Belfi
(800) 497-8076 or (212) 682-1818
Fax: (212) 682-1892
Email: [email protected]