Newmont Corporation NEM recently announced the divestment of its Porcupine operation in Ontario, Canada to Discovery Silver Corp. for up to $425 million in consideration. With the completion of all the announced divestiture transactions, including this, Newmont will deliver up to $4.3 billion in total proceeds from non-core asset divestitures and investments.

The expected proceeds of $425 million from the divestiture include cash consideration of $200 million, equity of $75 million in the form of Discovery shares and deferred cash consideration of $150 million. 

This marks the final non-core asset divestment transaction as a part of NEM’s divestiture program. Expected to close in the first half of 2025, this sale is aimed at strategically shifting the focus to the company’s Tier 1 assets. The divestiture program was designed to divest the company’s non-core assets, including six operations and two projects from its business units of Australia, Ghana and North America. To date, NEM already has divested or has agreements in place to divest all six operations and one project classified as held for sale in its financial statements. 

For the Porcupine transaction, BMO Capital Markets acted as financial adviser and Goodmans LLP as the legal adviser.

NEM stock has gained 20% in the past year compared with the 32.4% rise in the industry.

Image Source: Zacks Investment Research

NEM’s Zacks Rank and Key Picks

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

Some better-ranked stocks in the Basic Materials space are Ingevity Corporation NGVT, Carpenter Technology Corporation CRS and Methanex Corp. MEOH. While NGVT sports a Zacks Rank #1 (Strong Buy), CRS and MEOH carries a Zacks Rank #2 (Buy) each at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Ingevity’s current-year earnings is pegged at $2.75 per share. NGVT beat the Zacks Consensus Estimate in three of the trailing four quarters and missed once, with the average earnings surprise being 95.4%. NGVT’s shares have gained 0.4% in the past year.

The Zacks Consensus Estimate for Carpenter Technology’s current fiscal-year earnings is pegged at $6.77 per share. CRS beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average earnings surprise being 14.1%. CRS’ shares have soared 206.8% in the past year.

The Zacks Consensus Estimate for Methanex’s current-year earnings is pegged at $3.49 per share. MEOH surpassed the Zacks Consensus Estimate in each of the trailing four quarters, with an average earnings surprise of 100.9%. The stock has gained 10.8% in the past year.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Newmont Corporation (NEM) : Free Stock Analysis Report

Carpenter Technology Corporation (CRS) : Free Stock Analysis Report

Methanex Corporation (MEOH) : Free Stock Analysis Report

Ingevity Corporation (NGVT) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research