Newmont deal adds value

Article Excerpt

NEWMONT CORP. $63.45, remains a buy. The stock (New York symbol NEM; Shares outstanding: 803.1 million; Market cap: $50.4 billion; TSINetwork Rating: Average; Dividend yield: 1.6%; www.newmont.com) is now selling 11 more royalty streams to Vancouver-based Maverix Metals Inc. (Toronto symbol MMX). In 2018, Newmont transferred to Maverix the rights to 54 royalty streams. Those rights entitle the holder to a portion of the revenue, or the physical metals, from a variety of gold and other mines. Under the new deal, Newmont gets $90 million consisting of cash and Maverix shares. The additional shares raise Newmont’s ownership of Maverix from 26% to about 32%. The total stake is worth roughly $205 million based on Maverix’s current share price. Newmont will also profit from Maverix’s expanding portfolio of high-quality royalty streams. All together, that firm currently has over 100 streams from mines in 18 countries, mainly in Australia, the Americas and Mexico. Newmont Corp. is a buy. buy. …