Newmont Corporation (NEM.US) sells Australian gold-copper project for US $4.75 billion, accelerating asset slimming and focusing on first-tier asset strategy.

Newmont Corporation (NEM.US) announced that it has agreed to sell 70% of its stakes in the Telfer mine and Havieron gold-copper project in Western Australia to Greatland Gold for $475 million in cash and stock. This transaction is part of Newmont Corporation's strategy to divest non-core assets and is expected to be completed in the fourth quarter of 2024, subject to certain conditions. Under the terms of the agreement, Newmont Corporation expects to receive total proceeds of up to $475 million, including $207.5 million in cash at the time of completion, $167.5 million in Greatland Gold stock, and up to $100 million in deferred or conditional cash payments. Newmont Corporation has expressed confidence in Greatland Gold's ability to manage these assets and noted that this is the first divestiture of assets since announcing its asset sale plan in February. This divestiture aligns with Newmont Corporation's goal of raising at least $2 billion through the sale of non-core assets to focus on its primary assets, reduce debt, and return capital to shareholders. The assets being sold in this transaction were inherited by Newmont Corporation after the acquisition of Newcrest, marking the first divestiture in its asset sale plan. Newmont Corporation plans to focus on its six primary assets, including Boddington, Tanami, Cadia, and Lihir in Australia, Peasquito in Mexico, Ahafo in Ghana, and assets owned through two non-managed joint ventures, namely the Nevada Gold Mine in the United States and Pueblo Viejo in the Dominican Republic. Newmont Corporation is maintaining its 2024 targets. Due to the expected completion of the transaction in the fourth quarter, the company has made slight adjustments to its non-core gold and copper production guidance to reflect the sale of the Telfer mine. The Telfer mine has been classified as held for sale in the financial statements. In 2024, Newmont Corporation expects its primary asset portfolio's gold production to remain unchanged at 5.63 million ounces, with an additional contribution of 1.12 million ounces from non-core assets, bringing the total gold production to 6.75 million ounces. Copper production is expected to be 145,000 tons, with 144,000 tons coming from primary assets and 1,000 tons from non-core assets. Over the past year, Newmont Corporation's stock price has risen by 32.1%, slightly lower than the industry average of 33.4% growth during the same period.