Newmont puts gold mines up for sale to help raise US$2 billion
“We have a number of Tier 2 assets that are very good assets, run by very good people, but that don’t make our Tier 1 category,”
Newmont Corp., the world’s top gold producer, will seek to sell six mines and two projects in a set of divestitures aimed at generating $2 billion in cash.
The Denver-based company said Thursday it intends to divest three Canadian gold mines — Éléonore, Musselwhite and Porcupine — along with Cripple Creek & Victor in the US, Akyem in Ghana and Australia’s Telfer mine.
It also plans to sell two “non-core” projects, Havieron in Australia and Coffee Gold in Canada.
The firm first signaled plans to sell assets after closing its roughly $15 billion acquisition of Newcrest Mining Ltd. in November, solidifying its position as by far the world’s biggest gold producer. With the takeover, Newmont now operates 20 mines in 11 countries and expects to produce 6.7 million ounces of gold annually by 2028.
The firm on Thursday reported adjusted earnings of $0.50 a share in the fourth quarter, beating analyst expectations compiled by Bloomberg. It produced 5.5 million gold ounces in 2023, more than the consensus estimate.
In an interview, Chief Executive Officer Tom Palmer said the mines being divested do not meet the company’s criteria of “Tier 1” assets — producing 500,000 gold equivalent ounces or more, having a life of at least 10 years, and being located in top jurisdictions.
“We have a number of Tier 2 assets that are very good assets, run by very good people, but that don’t make our Tier 1 category,” Palmer said.
The company has already begun receiving interest from potential buyers, Palmer said.
Source:ghextractives
