NEM Wraps Up Non-Core Asset Sale With Akyem & Porcupine Deal Closures

Newmont Corporation NEM has closed the sale of its Akyem operation in Ghana and Porcupine operation in Canada. These completed transactions mark the conclusion of the company’s strategic divestiture program, announced in February 2024, reinforcing Newmont’s focus on optimizing its global portfolio. This marks an important milestone for Newmont, which has successfully divested all six non-core assets outlined in its early 2024 program. The cash proceeds received this year will support the company’s ongoing efforts to reinforce its balance sheet and deliver value to shareholders through continued share buybacks.

The total gross proceeds from the announced divestitures are projected to reach up to $4.3 billion, comprising $3.8 billion from the sale of non-core assets and $527 million from the divestment of other investments.

As part of the agreement for the sale of the Porcupine operation, Newmont received 119,716,667 common shares of Discovery in the capital of Discovery Silver Corp. These shares are held by Goldcorp Inc., a wholly owned subsidiary of Newmont. Following the completion of the transaction, Newmont beneficially owns approximately 15% of Discovery’s total issued and outstanding common shares.

Newmont plans to periodically review its investment in Discovery and, depending on its assessment, market conditions and other relevant factors, may choose to adjust its holdings either by increasing or reducing its stake through market trades, private deals, or other means.

Newmont’s shares have gained 45.1% in the past year against a 53.3% rise of the industry.

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, Idaho Strategic Resources, Inc. IDR and ArcelorMittal S.A. MT

Carpenter Technology currently carries a Zacks Rank #2. CRS beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 15.7%. The company's shares have soared 125.6% 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 78 cents. IDR, carrying a Zacks Rank #2, surpassed the Zacks Consensus Estimate in three of the trailing four quarters while missing once, with an average earnings surprise of 77.5%. The company's shares have rallied 98.9% in the past year.

ArcelorMittal, which currently carries a Zacks Rank #2, beat the consensus estimate in three of the trailing four quarters while missing once. In this time frame, it has delivered an earnings surprise of roughly 4.1%, on average. The company's shares have rallied 6.9% in the past year.

 

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This article originally published on Zacks Investment Research (zacks.com).

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