Newmont shares tumble after double divestment
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More news: Newmont was the worst performing ASX 200 company in morning trade after announcing the sale of shares in gold and copper miner Greatland Resources and precious metals company Discover Silvery.
Newmont shares were down 4.5% to $88.81 at 10:50am AEST, having returned nearly 50% since the turn of the year.
The miner led a broader selloff in gold stocks this morning, with rivals Genesis Minerals (-3.8%), West African Resources (-2.7%) and Regis Resources (-2.5%) also among the worst performers.
Newmont to sell stakes in Greatland Resources, Discovery Silver for $470m
The news: Gold miner Newmont Corporation has agreed to sell holdings in Greatland Resources and Discovery Silver Corp for a combined cash consideration of $470 million.
The numbers: Newmont will divest half its shares in gold and copper miner Greatland, taking its remaining equity stake to 9.9%.
The miner will sell all of its shares in precious metals company Discovery.
The context: The sales follow Newmont signalling last year that it intended to divest certain non-core assets and focus on its tier-one gold and copper projects.
Newmont, which announced the resignation of chief financial officer Karyn Ovelmen on Tuesday, said it remains on track to deliver its full-year guidance.
Following its exit from Greatland and Discovery, the miner expects to generate $3 billion in after-tax cash proceeds from its wider divestiture program this year.
The source: ASX
