Newmont shares lift on Telfer, Havieron divestment
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More news: ASX-listed shares of Newmont are up 1.2% to $77.04 after the world's top gold miner agreed to sell the Telfer gold and copper mine and its 70% stake in the Havieron project to London-listed Greatland Gold for up to $714 million.
The sale of the assets, acquired through Newmont's acquisition of Newcrest Mining last year, is part of its efforts to generate US$2 billion ($3 billion) through the divestment of non-core assets.
Newmont to sell Telfer, Havieron for US$475m
The news: Newmont has agreed to sell the Telfer gold and copper mine and its 70% stake in the Haveiron project to London-listed Greatland Gold as part of its ongoing program to divest non-core assets.
The numbers: Newmont will receive up to USD475 million ($714 million) for the West Australian assets. This includes cash consideration of USD207.5 million, Greatland shares worth USD167.5 million and a deferred contingent cash consideration of up to USD100 million.
The context: Newmont acquired the Telfer and Haveiron assets through its $26 billion acquisition of Australia’s top gold miner Newcrest in a deal last year that cemented its place as the world’s top producer of the precious metal.
The company subsequently booked a hefty loss and in February announced it would raise USD2 billion through the sale of non-core assets. Greatland, which counts billionaire Andrew Forrest among its investors, has been a favourite to buy the assets since it already owns the balance 30% stake in the Havieron project, which underpins Telfer’s future.
What they said: “Including the Telfer divestiture, we continue to expect to reach at least USD2 billion in total proceeds from the sale of our high-quality, non-core assets, enabling us to focus attention on our suite of Tier 1 assets, further reduce debt, and return capital to shareholders,” Newmont CEO Tom Palmer told investors.
The source: Newmont
