Newmont Goldcorp Corp (NGT:TSX) Declares Force Majeure on Deliveries, Consensus “Strong Buy’

Newmont Goldcorp Corp

NGT:CA Ratings by Stock Target Advisor

Newmont Goldcorp  has just declared force majeure on the deliveries of certain metal products from its Peñasquito mine located in Mexico. This declaration means that Newmont is unable to fulfill its contractual obligations to supply those specific metal products due to unforeseen circumstances beyond its control.

The reason cited by Newmont for invoking force majeure is the ongoing strike action that has been affecting operations at the Peñasquito mine. A strike occurs when workers collectively stop working as a form of protest or negotiation tactic, usually demanding better working conditions, higher wages, or other labor-related issues. The strike has resulted in a constraint on the mine’s output, leading Newmont to declare force majeure on the affected metal products.

By declaring force majeure, Newmont is notifying its customers that it cannot meet its contractual commitments due to the strike-induced operational constraints at the Peñasquito mine. Force majeure is typically invoked in situations where events or circumstances beyond a company’s control prevent it from fulfilling its contractual obligations. These events or circumstances are often considered unforeseeable, unavoidable, and unavoidable through reasonable means.

The declaration of force majeure allows Newmont to temporarily suspend or modify its contractual obligations without incurring penalties for non-compliance. It provides the company with legal protection against claims of breach of contract while it navigates the challenges caused by the strike and seeks to resolve the issues impacting the mine’s production.

The Peñasquito mine is a significant asset for Newmont, producing various metal products, including gold, silver, zinc, and lead. The strike and subsequent force majeure declaration could have implications for Newmont’s financial performance and supply chain, as disruptions in production and delivery can impact revenue and customer relationships.

It remains important for Newmont to engage in negotiations with the striking workers or their representatives to address the issues that led to the strike and find a resolution that allows the mine’s operations to resume normally. Resolving the labor dispute will be crucial for Newmont to lift the force majeure declaration and restore its ability to fulfill its contractual obligations for the affected metal products.

NEM Stock Forecast & Analysis

According to the forecast from 2 analysts, the average analyst target price for Newmont Goldcorp Corp over the next 12 months is CAD 90.00. This suggests that, on average, analysts expect the stock to increase in value over the coming year. The average analyst rating for Newmont Goldcorp Corp is a “Strong Buy”, indicating a positive outlook on the stock.

Stock Target Advisor’s own stock analysis of Newmont Goldcorp Corp presents a slightly bearish view. Their analysis is based on 5 positive signals and 10 negative signals, which indicate a more cautious perspective on the stock’s performance.

At the last closing, Newmont Goldcorp Corp’s stock price was CAD 54.87. This means that the stock was trading below both the average analyst target price and the recent closing price. Investors should consider these factors and conduct further research before making any investment decisions.

In terms of recent performance, Newmont Goldcorp Corp’s stock price has experienced some fluctuations. Over the past week, the stock price changed by -4.74%, indicating a decline. Over the past month, it decreased by -0.90%, and over the last year, it saw a significant decline of -33.71%.

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