The Northern Star Resources Ltd (ASX: NST) share price is lower today despite the company providing an acquisition update.
The Australian gold miner's shares are currently fetching $9.18 apiece, down 2.75%. It's worth noting that the S&P/ASX 200 Index (ASX: XJO) is also in negative territory, trading at 7,189 points, down 0.65%. The benchmark index is following Wall Street's losses on news that the Omicron variant has arrived in the United States.
Northern Star completes power business acquisition
Investors appear unfazed by the company's latest release, sending the Northern Star share price south.
In its statement, the company advised that it has completed the US$95 million purchase of gold producer Newmont Corporation's power business.
The 110 MW Parkeston power station and associated infrastructure provides electricity to Kalgoorlie Consolidated Gold Mines (KCGM).
The acquisition includes a 50% interest in the 110 MW Parkeston Power Station and associated infrastructure. In addition, the asset also feeds electricity to the Kalgoorlie area through its connection to the South-West Interconnected System.
In turn, this gives Northern Star greater control over the power supply to support its Kalgoorlie facilities. This translates to lower costs at KCGM and enables other options for the company to implement renewable energy solutions.
Northern Star managing director, Stuart Tonkin commented:
We are pleased to secure this key infrastructure which will enable a simpler pathway to achieving net zero through addition of renewable energy projects.
About the Northern Star share price
Over the last 12 months, Northern Star shares have failed to take off, dropping around 30%. It seems as though investor sentiment has weakened following a sharp fall in the spot price of gold this year.
Based on today's price, Northern Star commands a market capitalisation of approximately $10.61 billion, with roughly 1.16 billion shares outstanding.
