NEM Stock Alert: 5 Things to Know as Newmont Reaches Profit-Sharing Agreement

  • Newmont (NEM) stock is slipping after announcing a profit-sharing agreement.
  • This covers employees at its Peñasquito mine in Mexico.
  • The deal is similar to other profit-sharing agreements in the country.
Newmont (NEM) logo on a mobile phone screen

Source: Piotr Swat/Shutterstock

Newmont (NYSE:NEM) stock is on the move Tuesday after the precious metals mining company announced a profit-sharing agreement.

Let’s go over all of the details of that deal below!

  • According to a press release, it’s signed a profit-sharing deal with its represented workforce at the Peñasquito mine in Zacatecas, Mexico.
  • This will allow work at the mine to continue.
  • The agreement will have it paying its represented workforce an uncapped profit-sharing bonus of up to 10%.
  • That has an immediate cost equivalent of $70 million related to payments for 2021 results.
  • It’s worth mentioning that this agreement is similar in nature to others across Mexico.

Tom Palmer, president and CEO of Newmont, said the following in the news release.

“We are pleased to have reached this agreement with the National Union of Mining, Metallurgical, Iron and Steel and Similar Workers of the Mexican Republic. Through a respectful dialogue and the active participation of union leadership including Senator Napoléon Gómez Urrutia, we reached this agreement without interruption to the operation, ensuring a lasting relationship for the future of Peñasquito.”

NEM stock isn’t seeing extra activity on today’s news. Instead, only about 1.5 million shares have changed hands. That’s well below its daily average trading volume of roughly 6.4 million shares.

To go along with that, NEM stock is down 3.6% as of Tuesday morning.

Investors seeking out more of the latest stock market news are in the right place!

InvestorPlace has all of the most recent stock market coverage traders need to know about for Tuesday! Among that is what has shares of Exxon Mobil (NYSE:XOM), airline stocks, and Tesla (NASDAQ:TSLA) stock on the move today. You can read up on all of that news at the links below!

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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.


Article printed from InvestorPlace Media, https://investorplace.com/2022/07/nem-stock-alert-5-things-to-know-as-newmont-reaches-profit-sharing-agreement/.

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