Evolution Mining (EVN) stock surge on gold mine buy
08:07, 18 November 2021
The stock price of Evolution Mining reversed three-day losing streak and climbed to a four-month high after the Australian company announced a AUD1bn ($729m) gold mine acquisition from Glencore.
The deal, announced on Wednesday, was done post market hours, prompting market participants to rush into the stock since the start of today’s trade.
Evolution’s stock price immediately jumped from AUD3.99 to AUD4.15 after the opening bell and reached an intraday high of AUD4.43. The stock eased to AUD4.4 at the close, a 9.7% jump from Wednesday.
Top performer on ASX
Such an increase makes Evolution the biggest gainer on the Australian bourse on Thursday and curbed its year-to-date decline to 16.5%.
Under the deal with Glencore, Evolution will acquire 100% of Ernest Henry copper-gold mine near Cloncurry, Queensland, with AUD800m upfront payment and the remainder AUD200m payable in a year after the deal closes.
The transaction is expected to conclude in January 2022.
Read more: Evolution Mining (CAHPF) to buy Ernest Henry Mining from Glencore (GLEN)
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