Northern Star Resources Ltd (ASX: NST) saw its stock price plummet by 5.08% during Wednesday's intraday trading session, as the gold mining giant faced a double whammy of falling gold prices and the finalization of its acquisition of De Grey Mining Ltd.
The steep decline in Northern Star's share price comes as gold futures dropped 1% to US$3,392 an ounce, according to CNBC. The precious metal's retreat was attributed to easing US-China trade tensions, which reduced demand for safe-haven assets. As a major gold producer, Northern Star's profitability is closely tied to gold prices, making it particularly sensitive to such market movements.
Adding to the downward pressure, Northern Star announced that its scheme for the acquisition of 100% of shares in De Grey Mining Ltd has now become legally effective. While this marks a significant milestone for the company's expansion strategy, it appears that investors may be reacting cautiously to the finalization of this major transaction. The market's response suggests concerns about the deal's immediate impact on Northern Star's financial position or potential integration challenges ahead.
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