Newmont Corporation: Force Majeure Declared on Peñasquito Mine Deliveries Amid Strike Action

Newmont Corporation stock

Newmont Goldcorp Corp Stock Forecast:

According to two analysts, the average target price for Newmont Goldcorp Corp over the next 12 months is CAD 90.00. The average analyst rating for the stock is Strong Buy. However, Stock Target Advisor‘s own analysis suggests a slightly bearish outlook, with 5 positive signals and 10 negative signals. The stock closed at CAD 55.32 in the last session. Over the past week, the stock price has decreased by -2.05%, over the past month by -6.17%, and over the last year by -33.79%.

Newmont Corporation News:

Newmont Corporation has announced the declaration of force majeure on deliveries of certain metal products from its Peñasquito mine in Mexico. The U.S.-listed mining company stated that strike action at the mine has resulted in production interruptions, which have forced them to invoke force majeure with certain customers. This development highlights the challenges faced by the company in maintaining operations amidst labor disputes.

In a statement provided to Reuters, Newmont Corporation explained the rationale behind the declaration of force majeure. “Due to interruptions in production caused by the union strike at Newmont’s Peñasquito mine in Mexico, force majeure has been declared with certain customers for some of the mine’s products,” the company said. While Newmont acknowledged the impact of the strike on its operations, it emphasized its commitment to engaging in constructive dialogue with the union and the authorities involved in the mediation process.

The Peñasquito mine, located in Zacatecas state, is one of Newmont’s significant mining assets. It is an open-pit mine that primarily produces gold, silver, lead, and zinc. The mine has been operating since 2010 and has played a crucial role in Newmont’s global production portfolio. However, labor disputes have plagued the operation in recent years, leading to intermittent disruptions.

Newmont’s decision to declare force majeure reflects the extent of the impact the strike has had on its ability to meet contractual obligations with customers. Force majeure is a contractual clause invoked in extraordinary circumstances beyond the control of the parties involved, such as natural disasters, wars, or labor disputes. By invoking force majeure, Newmont is effectively notifying its customers that it is unable to fulfill its contractual commitments due to circumstances beyond its control.

The company’s commitment to engaging in a constructive dialogue with the union and the mediation authorities is a positive step toward resolving the labor dispute. Open communication, negotiation, and compromise are key elements in finding common ground and reaching a mutually beneficial agreement. It is in the best interest of both parties to find a resolution that allows the Peñasquito mine to resume full operations, ensuring the continued economic benefits it brings to the local community and the wider region.

 

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