| Newmont Divests Mining, Surface Rights to Pershing - Analyst Blog | |
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Newmont Mining Corporation (NEM) has sold its mining and surface use rights to around 1,600 acres of new long-term mining leases and 74 unpatented lode mining claims consisting of roughly 1,300 acres, to Pershing Gold Corporation. Newmont received an amount of $6 million in the entire transaction. The deal is inclusive of the takeover of a 20-year new mining lease acquired from New Nevada Lands, LLC, and New Nevada Resources, LLC.
Shares of Newmont rose around 5.7% to close at $23.57 yesterday.
The mining leases and claims in the transaction include lands adjoining Pershing's Relief Canyon Mine in Pershing County, NV. Pershing previously held these lands with Newmont under a Minerals Lease and Sublease. Through this transaction, a portion of the mineral sublease will be converted to long-term mining leases that considerably upgrade Pershing's mining and surface-use rights.
Newmont is focusing on its core businesses by disposing its non-core assets. Also, the company is working consistently in line with its strategy to deliver value to shareholders.
Newmont, in Oct 2014, completed the sale of its 44% stake in the Penmont joint venture in Mexico to Fresnillo plc for $450 million in cash. The company, in Jul 2014, also completed the sale of its Jundee underground gold mine in Australia to Northern Star Resources. Earlier, the company sold its Midas mine in Nevada to Klondex Mines Ltd.
Newmont is one of the world’s largest unhedged gold producers. The company is making significant progress with its cost and efficiency improvement programs. Successful cost-reduction measures will allow the company to generate positive free cash flow and help it to mitigate the unfavorable impact of lower commodity prices. Newmont also continues to invest in growth projects in a calculated manner.
Newmont currently carries a Zacks Rank #3 (Hold).
Better-ranked companies in the gold mining industry include Golden Star Resources, Ltd. (GSS), Pretium Resources Inc. (PVG) and Rubicon Minerals Corp. (RBY), all carrying a Zacks Rank #2 (Buy). Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report NEWMONT MINING (NEM): Free Stock Analysis Report PRETIUM RES INC (PVG): Free Stock Analysis Report GOLDEN STAR RES (GSS): Free Stock Analysis Report RUBICON MNRLS (RBY): Get Free Report To read this article on Zacks.com click here. Zacks Investment Research
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Rubicon Minerals Corp.
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EXPLORATION STAGE |
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CODE : RBY |
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Rubicon Min. is a gold exploration company based in Canada. Rubicon Min. holds various exploration projects in Canada. Its main exploration properties are RED LAKE MCCUAIG, RED LAKE EAST BAY, RED LAKE NORTH, MCCUAIG, RED LAKE SLATE BAY, RED LAKE DMC, RED LAKE ADAMS LAKE, RED LAKE HUMLIN and RED LAKE PHOENIX GOLD in Canada. Rubicon Min. is listed in Canada and in United States of America. Its market capitalisation is US$ 64.4 millions as of today (€ 56.9 millions). Its stock quote reached its highest recent level on December 03, 2010 at US$ 6.34, and its lowest recent point on January 11, 2016 at US$ 0.03. Rubicon Min. has 65 719 527 shares outstanding. |