Here are five things you need to know this morning:
Orla Mining buys Ontario gold mine for up to $850M: Vancouver-based gold miner Orla Mining says it has agreed to buy the Musselwhite gold mine in Ontario from Newmont for up to $850 million. The purchase will allow the company to roughly double its current output. The move is the latest divestiture for Newmont, which has been selling assets to cut its debt ever since an expensive purchase of Newcrest Mining last year. Newmont’s shares have lost about one per cent of their value over the past 12 months, a time when the underlying gold price has rallied by more than 25 per cent. We will hear from the CEO of Orla, Jason Simpson, in an interview on The Close this afternoon.
Goldman bullish on gold for 2025: Orla aren’t the only ones who are bullish on the gold sector. Strategists at Goldman Sachs listed bullion among their list of the top commodities picks for 2025. “Go for gold,” Goldman said in a note to clients, reiterating a target price of US$3,000 per ounce as central banks around the world start buying. Gold prices have rallied this year before selling off in recent weeks on strength in the U.S. dollar following the election of Donald Trump. But Goldman expects the rally to recommence once he is sworn in.
Manulife CEO Roy Gori to retire next May: Manulife President and CEO Roy Gori has announced he plans to retire next May. His successor will be Phil Witherington, who currently heads up the Asia unit. That part of the business has been the strongest performing unit at Manulife for much of the past several quarters, where the company’s stock has been on a tear. Witherington will work closely with Gori during the transition period and will join the board of the company next May.
Spirit Airlines files for bankruptcy: Low-fare U.S. carrier Spirit Airlines filed for bankruptcy protection on Monday morning in a move to restructure itself out of its cumbersome debt load. The company which targets discount flyers by offering rock bottom ticket prices with few amenities, has been trying to renegotiate its debt load for several months now. The airline has lost more than US$2.2 billion since the start of the pandemic and owes more than $9 billion. Earlier this year it struck a deal with rival JetBlue to be taken over, but a judge blocked that deal which led the company down the restructuring route.
Brookfield mulls Grifols bid at below-market price: Brookfield Asset Management is considering a buyout of Spanish drug company Grifols for just over US$7 billion, Bloomberg is reporting. TSX-listed Brookfield is reportedly considering a takeover offer of 10.5 euros per share for the drug company, below where the shares were trading on Friday. Grifols has lost more than 30 per cent of its value this year on rising concerns about its debt load, and the shares are trading lower on Monday.