What is boosting Newcrest Mining’s (ASX:NCM) share price today?

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What is boosting Newcrest Mining’s (ASX:NCM) share price today?

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 What is boosting Newcrest Mining’s (ASX:NCM) share price today?
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  • The share price of Newcrest was trading in the green today.
  • Newcrest’s shares were trading 1.56% higher at 11.35 AM AEST.
  • The share price may have gained on account of strength in the overall materials sector.

Shares of Newcrest Mining Limited (ASX:NCM) were trading in the green today (19 September) despite no major price-sensitive news released by the company. At 11.35 AM AEST, the ASX-listed gold mining company’s shares were trading at AU$16. 89 per share, up 1.56%, on ASX. This outperforms ASX 200 Materials index which was up 1.01%, at 15,583.10 points, at 11.36 AM AEST. Moreover, materials was the top performing sector at the same time. 

Why are Newcrest shares trading higher today?

While there was new announcement, the company’s shares may have gained on account of strength in the overall materials sector and an update released last Friday (16 September).

In response to the AU$9 million placement announced earlier last week (12 September 2022), major shareholder Newcrest Mining had informed Antipa Minerals Limited (ASX:AZY) of its intention to exercise its top-up right to maintain its 9.9% shareholding in Antipa.

According to an ASX filing on 16 September 2022, Antipa will issue an additional 36.7 million fully paid ordinary shares at a price of AU$0.027 per share (Top-Up Placement) to raise an additional AU$1 million (before costs). As a result, the total amount of money raised through the placement and top-up placement will be close to AU$10 million.

Additionally, Newcrest has informed the investee firm Antipa that it wants to use its top-up right once more when Antipa's share purchase plan (SPP) of up to AU$3 million gets completed.

Image Source: © 2022 Kalkine Media ®

Data Source- Company announcement dated 16 September 2022  

The money raised from the placement will be used for general working capital needs as well as to continue exploration and project development at the company's wholly owned Minyari Dome Project. 

Placement details

Antipa will issue an additional 36,666,667 shares of the company at an issue price of AU$0.027 through the top-up placement to raise about AU$1 million (before costs). The issue price for the placement is AU$0.027, which is also the price of the top-up placement.

According to the conditions of the top-up placement, Antipa would issue one free attaching unlisted option (Option) for every two new shares issued. The options will be exercisable at AU$0.04 and have a one-year expiration date under the placement conditions.

Under its ASX Listing Rule 7.1 placement capacity, Antipa will issue the top-up placement shares in a single tranche. On Friday, 23 September 2022, the top-up placement shares are anticipated to settle, and on Monday, 26 September 2022, they are expected to be issued.

The top-up placement options will be offered concurrently with the Placement Options and Options issued under the SPP in accordance with the company's ASX Listing Rule 7.1 capacity.

About Antipa

An Australian firm dedicated to mineral exploration Antipa Minerals Limited is involved in mining precious and base metals like gold, copper, and silver. The Minyari Dome Project, Citadel Joint Venture, Paterson Project, and Wilki Project are a few of the company's projects.

Meanwhile, shares of Antipa were trading 2.45% lower, at AU$0.028 per share, on ASX today at 11.53 AM AEST. 

Newcrest's FY22 highlights

Newcrest Mining shared its financial results for 2022 on 19 August 2022.

Image Source: © 2022 Kalkine Media ®

Data Source- Company announcement dated 19 August 2022  

What does Newcrest do?

In addition to selling gold and gold/copper concentrates, Melbourne-headquartered Newcrest Mining and its subsidiaries also participate in the exploration, development, and operation of mines. The company also engages in the discovery and exploitation of silver resources. It owns and manages mines and projects in the following countries: Brucejack and Red Chris in Canada; Lihir and Wafi-Golpu in Papua New Guinea; Cadia, Telfer, and Havieron in Australia.


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