BUZZ-Australia's Northern Star Resources gains as Morningstar says sale will help shareholders
Abacus Global Management, Inc. Class A ABX | 0.00 | |
Newmont NEM | 0.00 | |
Agnico Eagle Mines Limited AEM | 0.00 | |
Kellanova K | 0.00 |
Updates with share price move in first bullet, details
** Shares of Australian gold miner Northern Star Resources NST.AX rise as much as 8.4% to A$22.790, hitting their highest level since April 23
** Analysts at Morningstar say a sale of NST "would benefit its shareholders"
** Investment research firm, however, warns bigger rivals such as Newmont NEM.N, Barrick Mining ABX.TO, Agnico Eagle AEM.TO and Kinross K.TO to remain disciplined and not engage with NST unless any deal makes financial sense
** Earlier this week, activist investor Elliott Investment Management disclosed an over A$1 billion ($717.70 million) stake in NST and called for it to launch a strategic review that would consider a sale
** "Sale would also result in a quick — and likely satisfactory — return for Elliott" - Morningstar
** Says NST shares are trading 40% over their assessment, likely driven by market assuming that gold price will remain elevated
** NST shares down 17% YTD, including the day's moves
($1 = 1.3933 Australian dollars)