Newmont Corporation (NYSE:NEM, TSX:NGT, ASX:NEM, ETR:NMM)’s Musselwhite gold mine sale to Orla Mining is set to open the door for further share buybacks, Jefferies analysts believe.
The $810 million sale of the Ontario mine was unveiled on Monday under a wider effort to divest away from non-core assets.
Jefferies analysts pointed out in a note this would leave Newmont’s net debt around the $3 billion mark at the time of completion, expected in early 2025.
This would be “well below the company's share repurchase program threshold” of $5 billion in net debt, Jefferies said, “suggesting more buybacks are to come”.
Newmont is in the process of carrying out a $3 billion buyback, having expanded the scheme in October.
Some $1.1 billion worth of shares have been repurchased under this so far, Jefferies highlighted, adding other asset sales in the pipeline would provide further cash ahead.
A ‘buy’ rating was reiterated, alongside a $57 share price target.
Shares climbed 1.1% to $42.83 on Tuesday.