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Newmont Mining announces that a mine that has shown the existence of substantial gold reserves. The exploitation of these reserves is expected to increase Newmont's
Newmont Mining announces that a mine that has shown the existence of substantial gold reserves. The exploitation of these reserves is expected to increase Newmont's free cash flow by $150 million per year for six years. If investors had not been expecting this news, what is the most likely effect on Newmont's stock price upon the announcement, given that Newmont has 50 million shares outstanding, no debt, and an equity cost of capital of 15%?
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