BUZZ-Morningstar says sale of Northern Star Resources will help shareholders
Abacus Global Management, Inc. Class A ABX | 0.00 | |
Newmont NEM | 0.00 | |
Agnico Eagle Mines Limited AEM | 0.00 | |
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** Analysts at Morningstar say a sale of Australian gold miner Northern Star Resources NST.AX "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 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 21% YTD
($1 = 1.3933 Australian dollars)