Newmont to Divest Musselwhite Operation for Up to $850 Million

Newmont Corporation NEM has agreed to sell its Musselwhite operation in Ontario, Canada, to Orla Mining Ltd for up to $850 million in total consideration. According to the terms of the agreement, Newmont would get $810 million in cash at closing, plus up to $40 million in contingent payments. The acquisition is expected to be completed in the first quarter of 2025, pending certain conditions being met. Upon completion of the announced agreements, Newmont will have exceeded its goal of generating more than $2 billion in gross proceeds from non-core divestitures.In February 2024, Newmont revealed its intention to sell non-core assets, including six operations and two projects in its Australian, Ghanaian and North American business units. With agreements to sell assets in Australia, Ghana and now Musselwhite, NEM is focusing on completing the sales processes for its other North American non-core businesses, which are expected to be completed in the first quarter of 2025. Total gross proceeds from transactions announced so far this year are expected to be up to $2.9 billion, including $2.3 billion from non-core divestitures.Newmont continues to use free cash flow from operations and divestiture proceeds to increase long-term value for shareholders by repurchasing shares on a ratable basis. Under this approach, NEM has a $3 billion share repurchase program approved for implementation through October 2026. In addition, Newmont has made substantial progress toward its targeted debt level of $8 billion, retiring roughly $500 million in 2024 and highlighting its commitment to a disciplined and balanced approach to capital allocation.Newmont’s shares have gained 18% in the past year compared with a 31.1% rise of the industry.Image Source: Zacks Investment ResearchNewmont expects fourth-quarter 2024 attributable production of 1.8 million gold ounces. The company anticipates that the fourth-quarter costs applicable to sales will be $1,050 per ounce, with an all-in-sustaining costs of $1,475 per ounce.Newmont Corporation Price and Consensus Newmont Corporation price-consensus-chart | Newmont Corporation QuoteNEM’s Rank & Other Key PicksNEM currently carries a Zacks Rank #2 (Buy).Other top-ranked stocks in the basic materials space include Carpenter Technology Corporation CRS, IAMGOLD Corporation IAG and CF Industries Inc. CF. Carpenter Technology currently carries a Zacks Rank #1 (Strong Buy). CRS beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 14.1%. The company's shares have soared 157.2% in the past year. You can see the complete list of today's Zacks #1 Rank stocks here.The Zacks Consensus Estimate for IAG’s current-year earnings is pegged at 56 cents, indicating a year-over-year rise of 522.2%. The Zacks Consensus Estimate for IAG's current-year earnings has increased in the past 30 days. IAG, a Zacks Rank #2 stock, beat the consensus estimate in each of the last four quarters, with the average earnings surprise being 203.4%. The company's shares have rallied roughly 112% in the past year.The Zacks Consensus Estimate for CF’s current-year earnings is pegged at $6.32 per share. CF, a Zacks Rank #1 stock, beat the consensus estimate in two of the last four quarters while missed twice, with the average earnings surprise being 10.3%. CF has rallied around 13.1% in the past year. Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is among the most innovative financial firms. With a fast-growing customer base (already 50+ million) and a diverse set of cutting edge solutions, this stock is poised for big gains. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Newmont Corporation (NEM): Free Stock Analysis Report CF Industries Holdings, Inc. (CF): Free Stock Analysis Report Carpenter Technology Corporation (CRS): Free Stock Analysis Report Iamgold Corporation (IAG): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks