Newmont to sell Akyem gold mine to China's Zijin for $1.48b
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The news: Gold mining giant Newmont has agreed to sell its Akyem operation in Ghana to China's Zijin Mining Group for up to USD1 billion ($1.48 billion).
The numbers: Under the terms of the agreement, Newmont is expected to receive a cash consideration of USD900 million upon closing. A further USD100 million is expected to be received upon the satisfaction of certain conditions.
Newmont said it "remains committed to Ghana", including through the investment of USD950 million to USD1.05 billion of development capital in the Ahafo North gold mining project.
US-based Newmont — which is listed on the Australian sharemarket as well as the New York Stock Exchange, the Toronto Stock Exchange and the PNG National Stock Exchange — was up 1.1% to $78.99 per share on the ASX by 11:55am AEDT.
The context: Newmont said the sale is part of the company's ongoing program to divest non-core assets as it makes a strategic shift to focus on its Tier 1 assets.
Proceeds from the sale will support Newmont's capital allocation priorities, including strengthening its balance sheet and returning capital to shareholders.
The sale will not have a material impact on Newmont's 2024 outlook as it is expected to close in the fourth quarter of 2024, subject to regulatory approvals.
What they said: "We believe the proposed transaction results in the greatest overall value for Newmont shareholders and is the best strategic fit for Akyem," Newmont president and CEO Tom Palmer said.
"The successful completion of this transaction will strengthen our confidence in Ghana as a favourable mining jurisdiction and Newmont will continue to support the growth and development of the region including our development of Ahafo North."
The source: ASX announcement
