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Newmont (NEM) Successfully Completes Acquisition of Newcrest
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Newmont Corporation (NEM - Free Report) announced the successful completion of its acquisition of Newcrest Mining Limited, marking a significant milestone in the company's history and the industry as a whole.
Tom Palmer, president and CEO of Newmont, expressed enthusiasm for the transformational acquisition, reflecting the company's commitment to safely and efficiently integrate Newcrest's assets and personnel into its established operational model. This move aims to expedite the implementation of its value-focused strategy for stakeholders’ benefit.
The acquisition positions Newmont as the world's leading gold mining company with substantial copper production. It boasts an unparalleled portfolio of Tier 1 assets, making up more than half of the world's such assets. This expanded portfolio comprises long-life operations, value-enhancing projects, abundant exploration prospects and a highly skilled workforce. These assets will facilitate profitable production in geographies known for their favorable mining conditions and support top-tier sustainability practices.
The completion of Newmont's acquisition of Newcrest is set to yield several significant outcomes. First, it strengthens Newmont's position as a responsible leader in the gold mining industry by combining high-quality operations, projects, and reserves located in low-risk jurisdictions, including 10 Tier 1 operations. This strategic consolidation ensures decades of secure, profitable, and responsible gold and copper production.
The acquisition is expected to generate annual pre-tax synergies of $500 million, with these synergies anticipated to materialize within the first 24 months. It aims to deliver at least $2 billion in cash improvements through portfolio optimization within the initial two years post-closing. Newmont is committed to maintaining its balanced capital allocation priorities and its industry-leading non-binding dividend payout. The company has distributed more than $5 billion in dividends to shareholders since completing the Goldcorp transaction in 2019, underscoring its dedication to its investor base.
The acquisition further brings a wealth of experienced leaders, subject matter experts and established regional teams in Australia and Canada into the Newmont fold, all of whom possess extensive knowledge and expertise in the mining industry.
In conjunction with the transaction, Newmont issued a total of 357,691,627 new shares of Newmont common stock, including 15,720,585 New Newmont Shares, 341,792,611 shares underlying New Newmont CDIs and 178,431 shares underlying New Newmont PDIs.
Newmont’s shares have lost 13.4% in the past year compared with a 14.3% rise of the industry.
The Zacks Consensus Estimate for ANDE’s current-year earnings has been revised 3.3% upward in the past 60 days. Andersons beat the Zacks Consensus Estimate in each of the last four quarters. It delivered a trailing four-quarter earnings surprise of 64.4% on average. ANDE shares have rallied around 41.2% in a year.
The consensus estimate for CRS’s current fiscal year earnings is pegged at $3.57, indicating year-over-year growth of 213.2%. CRS beat the Zacks Consensus Estimate in all of the last four quarters, with the average earnings surprise being 14.3%. The company’s shares have surged 71.7% in the past year.
The consensus estimate for Linde’s current fiscal year earnings is pegged at $14.08, indicating a year-over-year growth of 14.6%. LIN beat the Zacks Consensus Estimate in all of the last four quarters, with the average earnings surprise being 5.7%. The company’s shares have rallied 24.9% in the past year.
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Newmont (NEM) Successfully Completes Acquisition of Newcrest
Newmont Corporation (NEM - Free Report) announced the successful completion of its acquisition of Newcrest Mining Limited, marking a significant milestone in the company's history and the industry as a whole.
Tom Palmer, president and CEO of Newmont, expressed enthusiasm for the transformational acquisition, reflecting the company's commitment to safely and efficiently integrate Newcrest's assets and personnel into its established operational model. This move aims to expedite the implementation of its value-focused strategy for stakeholders’ benefit.
The acquisition positions Newmont as the world's leading gold mining company with substantial copper production. It boasts an unparalleled portfolio of Tier 1 assets, making up more than half of the world's such assets. This expanded portfolio comprises long-life operations, value-enhancing projects, abundant exploration prospects and a highly skilled workforce. These assets will facilitate profitable production in geographies known for their favorable mining conditions and support top-tier sustainability practices.
Newmont Corporation Price and Consensus
Newmont Corporation price-consensus-chart | Newmont Corporation Quote
The completion of Newmont's acquisition of Newcrest is set to yield several significant outcomes. First, it strengthens Newmont's position as a responsible leader in the gold mining industry by combining high-quality operations, projects, and reserves located in low-risk jurisdictions, including 10 Tier 1 operations. This strategic consolidation ensures decades of secure, profitable, and responsible gold and copper production.
The acquisition is expected to generate annual pre-tax synergies of $500 million, with these synergies anticipated to materialize within the first 24 months. It aims to deliver at least $2 billion in cash improvements through portfolio optimization within the initial two years post-closing. Newmont is committed to maintaining its balanced capital allocation priorities and its industry-leading non-binding dividend payout. The company has distributed more than $5 billion in dividends to shareholders since completing the Goldcorp transaction in 2019, underscoring its dedication to its investor base.
The acquisition further brings a wealth of experienced leaders, subject matter experts and established regional teams in Australia and Canada into the Newmont fold, all of whom possess extensive knowledge and expertise in the mining industry.
In conjunction with the transaction, Newmont issued a total of 357,691,627 new shares of Newmont common stock, including 15,720,585 New Newmont Shares, 341,792,611 shares underlying New Newmont CDIs and 178,431 shares underlying New Newmont PDIs.
Newmont’s shares have lost 13.4% in the past year compared with a 14.3% rise of the industry.
Image Source: Zacks Investment Research
Zacks Rank & Other Key Picks
Newmont currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Basic Materials space are The Andersons Inc. (ANDE - Free Report) and Carpenter Technology Corporation (CRS - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) and Linde plc (LIN - Free Report) , carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for ANDE’s current-year earnings has been revised 3.3% upward in the past 60 days. Andersons beat the Zacks Consensus Estimate in each of the last four quarters. It delivered a trailing four-quarter earnings surprise of 64.4% on average. ANDE shares have rallied around 41.2% in a year.
The consensus estimate for CRS’s current fiscal year earnings is pegged at $3.57, indicating year-over-year growth of 213.2%. CRS beat the Zacks Consensus Estimate in all of the last four quarters, with the average earnings surprise being 14.3%. The company’s shares have surged 71.7% in the past year.
The consensus estimate for Linde’s current fiscal year earnings is pegged at $14.08, indicating a year-over-year growth of 14.6%. LIN beat the Zacks Consensus Estimate in all of the last four quarters, with the average earnings surprise being 5.7%. The company’s shares have rallied 24.9% in the past year.