Plenty of boxes need to be ticked before Newcrest (NCM) is folded into Newmont (NEM US), but the largest-ever gold takeover now looks highly likely to proceed, this now brings up a few considerations for investors such as the MM Flagship Growth Portfolio:
- Basis yesterday morning the takeover price for NCM was $29.24 inclusive of the franking benefit on the $1.10 proposed special dividend, however, this value will change in line with the Newmont share price and the AUDUSD cross rate. NB: Newmont rallied +2.5% overnight.
- So far in 2023 NCM has surged over +40% while NST has advanced +28% – great performances from both gold miners but the important question is will NCM/NEM continue to outperform now the takeover looks like a done deal?
We are now considering switching our NCM position over to NST believing it has more upside potential into Christmas but we are bullish on both – note they both are likely to fall if the underlying gold price reverses lower.
MM is considering switching all/part of our NCM position into NST
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Newcrest Mining (NCM) v Northern Star Resources (NST)
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Newcrest Mining (NCM) v Northern Star Resources (NST)
