Back to top

Image: Bigstock

Newmont Agrees to Divest Coffee Project in Yukon for $150M

Read MoreHide Full Article

Key Takeaways

  • Newmont will sell its Coffee Project in Yukon to Fuerte Metals for up to $150 million.
  • The deal includes cash, Fuerte shares and a 3% net smelter return royalty.
  • Newmont will hold about 27% of Fuerte's shares, keeping exposure to the project.

Newmont Corporation (NEM - Free Report) has entered into an agreement to sell its Coffee Project in Yukon, Canada, to Fuerte Metals Corporation for a total consideration of up to $150 million. The transaction is expected to close in the fourth quarter of 2025.

The $150 million proceed includes $10 million in cash, 34 million shares in consideration that amount to $40 million of Fuerte shares and a 3% net smelter return (NSR) royalty on the Coffee Project. Fuerte retains the option to repurchase the NSR for up to $100 million.

The sale is part of Newmont’s plan to streamline its portfolio and focus better on core operations. In the process of selecting the buyer, the company had been looking for a buyer with shared values and environmental consciousness. Fuerte Metals, being backed by notable shareholders and adequate resources to fund acquisition, exploration and development of copper and precious metals projects in Mexico and Chile, made it a better choice as the buyer. With the closure of this transaction, Newmont would complete its plan to divest six operations and two projects across Australia, Ghana and North America.

The transaction will have BMO Capital Markets as the financial adviser and Goodmans LLP as the legal adviser. Newmont will own approximately 27% of Fuerte’s issued and outstanding shares, continuing to have exposure to the project. Newmont will evaluate its investment from time to time and decide on increasing or decreasing its ownership.

NEM’s shares have gained 51.9% over the past year compared with the industry’s 74.8% surge.

Zacks Investment Research
Image Source: Zacks Investment Research

NEM’s Zacks Rank & Key Picks

NEM currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the Basic Materials space are Carpenter Technology Corporation (CRS - Free Report) , The Mosaic Company (MOS - Free Report) and Avino Silver & Gold Mines Ltd. (ASM - Free Report) . While CRS sports a Zacks Rank #1 (Strong Buy) at present, MOS and ASM carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for CRS’ current fiscal-year earnings is pegged at $9.51 per share, indicating a 27.14% year-over-year increase.Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with an average surprise of 8.38%. CRS’ shares have surged 64.7% in the past year.

The Zacks Consensus Estimate for MOS’ 2025 earnings is pegged at $3.17 per share, indicating a rise of 60.10% from year-ago levels. The company’s earnings beat the consensus estimate in one of the trailing four quarters while missing it in the rest. MOS’ shares have gained 34.7% in the past year.

The Zacks Consensus Estimate for ASM’s current-year earnings is pegged at 11 cents per share. Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with an average surprise of 141.67%. ASM’s shares have jumped 340.5% in the past year.


 

Published in