Market News

Newmont Agrees to Sell Kalgoorlie Power Business for $95M

Newmont (NEM) has entered into an agreement to sell its Kalgoorlie power business to Australia-based Northern Star Resources Limited. The mining company engages in the exploration and production of gold, copper, silver, zinc and lead.

As per the agreed terms, Newmont will receive $95 million in cash. The price includes $25 million option payment the company had previously received from Northern Star as part of 50% stake sale in Newmont’s Kalgoorlie Consolidated Gold Mines (KCGM) in 2020.

The Kalgoorlie power business supplies electricity to KCGM through a suite of contracts, licenses, approvals and third party arrangements, including a 50% interest in the 110MW duel fuel gas turbine Parkeston Power Station near Kalgoorlie. (See Newmont stock chart on TipRanks)

The President and CEO of Newmont, Tom Palmer, said, “With the sale of this non-core asset, we will continue our regional focus on delivering long term value at our Boddington and Tanami operations and advancing our future project pipeline through active exploration campaigns.”

Price Target

Recently, Canaccord Genuity analyst Carey MacRury maintained a Buy rating on the stock and lowered the price target to $64 (implies 14.7% upside potential) from $66.

Based on 3 Buys and 5 Holds, the stock has a Moderate Buy consensus rating. The average Newmont price target of $61.94 implies 11% upside potential from current levels.

See Analysts’ Top Stocks on TipRanks >>

Risk Factors

Investors should always be aware of the risks involved in any stock. According to the new TipRanks’ Risk Factors tool, NEM is at risk mainly from two factors: Macro & Political, and Production, which contribute 29% and 27%, respectively, to the total 48 risks identified for the stock.

Related News:
Intel Joins Hands with Snowflake to Improve Clients’ Experience
Merck Completes Acquisition of Acceleron Pharma
FDA Grants RMAT Designation to CRISPR’s CTX110

Tired of arriving late to the Big Returns Party?​
Most investors don’t have major gainers like TSLA or NVDA on their radar from the start.
The profusion of opinions on social media and financial blogs makes it impossible to distinguish between real growth potential and pure hype.
​​For the past decade, we have developed and perfected technology designed to help private investors, just like you, find the best opportunities, with the greatest upside potential, in any financial climate.​
Learn More