Newmont Corporation NEM has agreed to sell its Cripple Creek & Victor ("CC&V") mine in Colorado to SSR Mining Inc. ("SSR") for up to $275 million in cash. Upon completion of the announced deals, Newmont will receive up to $3.9 billion in gross proceeds from non-core asset divestitures and investment sales. The acquisition is expected to be completed in the first quarter of 2025, pending certain criteria. 

According to the terms of the agreement, Newmont expects to receive gross proceeds of up to $275 million, including a cash consideration of $100 million due at closure. It expects deferred cash consideration of $87.5 million upon receipt of pending regulatory approval and deferred contingent cash compensation of $87.5 million upon resolution of regulatory applications for the Carlton Tunnel. Following the completion of an updated regulator-approved closure plan, and if total closure costs at CC&V exceed $500 million, Newmont will be responsible for funding 90% of the incremental closure costs, either on an as-incurred basis or through a net present value lump sum payment option.

In connection with the CC&V deal, BMO Capital Markets acted as financial adviser and Davis Graham & Stubbs LLP acted as legal adviser. The announcement, as part of the divestment program, is intended to streamline the Newmont portfolio as the premier operator of Tier 1 gold and copper assets. The company believes that SSR is capable of delivering the next chapter of life for CC&V, its workers and local stakeholders.

Newmont’s shares have gained 5.7% in the past year compared with a 26.2% rise of the industry.

Image Source: Zacks Investment Research

Newmont expects fourth-quarter 2024 attributable production of 1.8 million gold ounces. The company projects the fourth-quarter costs applicable to sales to be $1,050 per ounce, with all-in-sustaining costs of $1,475 per ounce.

NEM’s Rank & Key Picks

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

Better-ranked stocks in the basic materials space include Carpenter Technology Corporation CRS, DuPont de Nemours, Inc. DD and CF Industries Inc. CF. 

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 14.1%. The company's shares have soared 191.8% in the past year. You can see the complete list of today's Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for DD’s current-year earnings is pegged at $3.88 per share, indicating a year-over-year rise of 11.5%. DD, a Zacks Rank #2 (Buy) stock, beat the consensus estimate in each of the last four quarters, with the average earnings surprise being 12.9%. The company's shares have rallied roughly 16.1% in the past year.

The Zacks Consensus Estimate for CF’s current-year earnings is pegged at $6.32 per share. CF, a Zacks Rank #1 stock, beat the consensus estimate in two of the last four quarters while missed twice, with the average earnings surprise being 10.3%. CF has rallied around 17.2% 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

DuPont de Nemours, Inc. (DD) : Free Stock Analysis Report

Newmont Corporation (NEM) : Free Stock Analysis Report

CF Industries Holdings, Inc. (CF) : Free Stock Analysis Report

Carpenter Technology Corporation (CRS) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research