Newmont meets its $1bn-plus divestment target
NYSE- and TSX-listed Newmont has met its asset divestment goal of $1-billion to $1.5-billion announced following last year’s tie-up with rival Goldcorp, with the major expecting to receive more than $1.4-billion in cash proceeds in the first quarter of this year.
The gold miner on Friday completed the sale of its 50% of Kalgoorlie Consolidated Gold Mines (KCGM), the owner of the Super Pit mine in Western Australia, to Australian miner Northern Star Resources, receiving $800-million.
It also has in place agreements to sell the Red Lake mine, in Canada, to Australia’s Evolution Mining for $375-million and its 19.9% stake in Colombia-focused Continental Gold for $260-million.
The deal between Newmont and Northern Star, announced in December, followed a similar transaction between Saracen Mineral Holdings and Barrick Gold, which saw Saracen acquire Barrick’s 50% stake in Super Pit for $750-million.
The sale of KCGM leaves Newmont’s portfolio with 12 assets, located on four continents.
Following the completion of the transaction, Newmont also updated its 2020 guidance, with production now forecast to be 6.4-million ounces for the year and between 6.2-million and 6.7-million ounces through 2024.
Newmont previously forecast production of 6.7-million ounces at an all-in sustaining cost (AISC) of $975/oz for 2020, and longer-term production of 6.5-million to 7-million ounces.
The gold cost applicable to sales guidance remained unchanged at $750/oz for 2020 and between $850/oz and $950/oz for 2021 and 2022. The AISC guidance is between $800/oz and $900/oz for 2023 and 2024.
The group lowered its attributable sustaining capital guidance to $950-million for 2020 and between $0.9-billion and $1.1-billion longer-term through 2024. Its previous sustainable capital guidance was $975-million for 2020 and between $0.9-billion to $1.1-billion longer-term through 2024.
On December 3, Newmont guided development capital of $575-million for 2020 and $500-million to $600-million for 2021.
Comments
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation