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Newmont (NEM) Wraps Up Triple Flag Shares Sale for $179M
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Newmont Corporation (NEM - Free Report) announced that it has completed the sale of its common shares of Triple Flag Precious Metal (Triple Flag) in the open market. The net proceeds after tax from this transaction were $179 million, which will be beneficial for generating cash for the company at fair value while streamlining and optimizing its equity portfolio.
After the Goldcorp acquisition in 2019, Newmont has made significant progress in maximizing value for its shareholders and other stakeholders by selling non-core assets. The company has generated cash proceeds exceeding $2 billion since then, which has strengthened its investment-grade balance sheet. This, in turn, allowed the company to maintain a flexible financial position while managing a world-class portfolio of long-lasting and responsible assets situated in top-tier jurisdictions.
Newmont acquired an equity stake in Triple Flag through a strategic partnership with Maverix Metals in 2018. After acquiring Goldcorp, Newmont sold additional royalties to Maverix in 2020, which led to the possession of 42.0 million common shares of the latter and 5.0 million purchase warrants. In January 2023, Triple Flag completed the purchase of Maverix, and as a result, NEM received 15.1 million common shares and 1.8 million purchase warrants of the combined entity. Before the sale, Newmont held around 7.5% of the outstanding common shares of Triple Flag for investment purposes.
Newmont’s shares have lost 39.1% in the past year compared with a 26.1% decline of the industry.
Image Source: Zacks Investment Research
The company, on its fourth-quarter call, stated that it expects gold production to be in the range of 5.7-6.3 million ounces for 2023. NEM also expects gold CAS (costs applicable to sales) to be between $870 and $970 per ounce and AISC (all-in-sustaining costs) to be in the range of $1,150-$1,250 per ounce.
Olympic Steel’s shares have gained 33% in the past year. The Zacks Consensus Estimate for ZEUS’ current-year earnings has been revised 61% upward in the past 60 days. It topped the Zacks Consensus Estimate in all the last four quarters. It delivered a trailing four-quarter earnings surprise of 26.2% on average.
Steel Dynamic’s shares have gained 32.4% in the past year. The Zacks Consensus Estimate for STLD’s current-year earnings has been revised 37.2% upward in the past 60 days. It topped the Zacks Consensus Estimate in all the last four quarters. It delivered a trailing four-quarter earnings surprise of 11.3% on average.
Linde’s shares have gained 9.5% in the past year. The company has an earnings growth rate of 8.1% for the current year. The Zacks Consensus Estimate for LIN’s current-year earnings has been revised 25% upward in the past 60 days.
LIN topped the Zacks Consensus Estimate in all the last four quarters. It delivered a trailing four-quarter earnings surprise of 6% on average.
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Newmont (NEM) Wraps Up Triple Flag Shares Sale for $179M
Newmont Corporation (NEM - Free Report) announced that it has completed the sale of its common shares of Triple Flag Precious Metal (Triple Flag) in the open market. The net proceeds after tax from this transaction were $179 million, which will be beneficial for generating cash for the company at fair value while streamlining and optimizing its equity portfolio.
After the Goldcorp acquisition in 2019, Newmont has made significant progress in maximizing value for its shareholders and other stakeholders by selling non-core assets. The company has generated cash proceeds exceeding $2 billion since then, which has strengthened its investment-grade balance sheet. This, in turn, allowed the company to maintain a flexible financial position while managing a world-class portfolio of long-lasting and responsible assets situated in top-tier jurisdictions.
Newmont acquired an equity stake in Triple Flag through a strategic partnership with Maverix Metals in 2018. After acquiring Goldcorp, Newmont sold additional royalties to Maverix in 2020, which led to the possession of 42.0 million common shares of the latter and 5.0 million purchase warrants. In January 2023, Triple Flag completed the purchase of Maverix, and as a result, NEM received 15.1 million common shares and 1.8 million purchase warrants of the combined entity. Before the sale, Newmont held around 7.5% of the outstanding common shares of Triple Flag for investment purposes.
Newmont’s shares have lost 39.1% in the past year compared with a 26.1% decline of the industry.
Image Source: Zacks Investment Research
The company, on its fourth-quarter call, stated that it expects gold production to be in the range of 5.7-6.3 million ounces for 2023. NEM also expects gold CAS (costs applicable to sales) to be between $870 and $970 per ounce and AISC (all-in-sustaining costs) to be in the range of $1,150-$1,250 per ounce.
Newmont Corporation Price and Consensus
Newmont Corporation price-consensus-chart | Newmont Corporation Quote
Zacks Rank & Key Picks
Newmont currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the basic materials space are Olympic Steel, Inc. (ZEUS - Free Report) , Steel Dynamics, Inc. (STLD - Free Report) and Linde plc (LIN - Free Report) . LIN currently carries a Zacks Rank #2 (Buy), while ZEUS and STLD sport a Zacks Rank #1(Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Olympic Steel’s shares have gained 33% in the past year. The Zacks Consensus Estimate for ZEUS’ current-year earnings has been revised 61% upward in the past 60 days. It topped the Zacks Consensus Estimate in all the last four quarters. It delivered a trailing four-quarter earnings surprise of 26.2% on average.
Steel Dynamic’s shares have gained 32.4% in the past year. The Zacks Consensus Estimate for STLD’s current-year earnings has been revised 37.2% upward in the past 60 days. It topped the Zacks Consensus Estimate in all the last four quarters. It delivered a trailing four-quarter earnings surprise of 11.3% on average.
Linde’s shares have gained 9.5% in the past year. The company has an earnings growth rate of 8.1% for the current year. The Zacks Consensus Estimate for LIN’s current-year earnings has been revised 25% upward in the past 60 days.
LIN topped the Zacks Consensus Estimate in all the last four quarters. It delivered a trailing four-quarter earnings surprise of 6% on average.