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Newmont Reduces its Holdings in Discovery Silver to 8.6%

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Newmont Corporation (NEM - Free Report) recently reported a reduction in its stake in Discovery Silver Corp. NEM’s subsidiary, Goldcorp Inc., divested 50,500,000 common shares for a total of around C$124.07 million, which equates to C$2.457 per share. The sale was conducted through the Toronto Stock Exchange.

Prior to the sale, Newmont held 119,716,667 common shares of Discovery Silver Corp., representing roughly 14.95% of the company’s issued and outstanding shares. Following the transaction, its holdings were reduced to 79,216,667 shares, now accounting for approximately 8.64% of the total issued and outstanding shares.

Newmont intends to continuously review its investment in Discovery Silver and, depending on its ongoing assessments, market trends and other relevant factors, may choose to either increase or further reduce its position through market transactions, private transactions, or other strategic means.

Newmont’s shares have gained 17.6% in the past year against a 30.2% rise of the industry.

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Newmont anticipates maintaining its expected gold production for 2025 at about 5.9 million ounces. The company also projects cost applicable to sales (CAS) for gold at $1,200 per ounce and an all-in-sustaining cost (AISC) of $1,630 per ounce.

NEM’s Rank & Other Key Picks

NEM currently carries a Zacks Rank #2 (Buy).

Other top-ranked stocks in the basic materials space include Carpenter Technology Corporation (CRS - Free Report) , Idaho Strategic Resources, Inc. (IDR - Free Report) and Hawkins, Inc. (HWKN - Free Report)

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 11.1%. The company's shares have soared 112% in the past year. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for Idaho Strategic Resources’ current-year earnings is pegged at 21 cents. IDR, carrying a Zacks Rank #2, surpassed the Zacks Consensus Estimate in two of the trailing four quarters, while missing twice, with an average earnings surprise of 21.7%. The company's shares have rallied 28% in the past year.

Hawkins, which currently carries a Zacks Rank #1, beat the consensus estimate in one of the trailing four quarters, while missing thrice. In this time frame, it has delivered an earnings surprise of roughly 6.1%, on average. The company's shares have rallied 57.3% in the past year.

 

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