Newmont has announced the sale of its Akyem gold operation in Ghana to China's Zijin Mining Group for up to $1 billion in cash. This transaction forms a crucial part of Newmont’s strategy to divest its non-core assets, which the company has been actively pursuing. Upon completion of the deal, Newmont anticipates receiving $900 million in cash, with an additional $100 million contingent on certain conditions being met.
Following news of the sale, Newmont's shares experienced a slight decline of 0.4% in premarket trading on Wednesday. The transaction, pending regulatory approval, is projected to finalize by the end of the fourth quarter this year. Newmont officials have conveyed that they do not foresee this divestiture affecting their outlook for 2024 significantly.
The proceeds from this transaction are earmarked for essential capital allocation strategies, including reinforcing the company’s balance sheet and returning capital to its shareholders. Chief Executive Tom Palmer expressed that the sale reflects ongoing progress in their non-core asset divestiture program, initially announced in February.
He emphasized that this move underscores a commitment to focus on Tier 1 assets within Newmont’s portfolio, which are projected to facilitate sustainable growth and shareholder returns. Earlier in the year, Newmont disclosed plans to sell off six non-core assets along with two non-core projects. Palmer further remarked, "We believe the proposed transaction results in the greatest overall value for Newmont shareholders and is the best strategic fit for Akyem." In a related development, Newmont engaged in a separate transaction last month where it agreed to divest certain mining assets in Australia for potential proceeds of up to $475 million in cash and equity.
This deal encompasses the sale of Newmont’s Telfer operation and its 70% stake in the Havieron gold-copper project, with expectations for closure during the current three-month period. Karyn Ovelmen, Newmont's Chief Financial Officer, had stated during the Denver Gold Forum Americas conference in September that the company aims to generate about $2 billion from its divestiture program, targeting completion by the end of Q1 2025..