Divestitures Announced to Date to Generate up
to $3.9 Billion in Gross Proceeds
Newmont Corporation (NYSE: NEM, TSX: NGT, ASX: NEM, PNGX: NEM)
(“Newmont” or the “Company”) announced today that it has agreed to
sell its Cripple Creek & Victor (“CC&V”) operation in
Colorado, USA, to SSR Mining Inc. (“SSR”) for up to $275 million in
cash consideration. Upon closing the announced transactions,
Newmont will have delivered up to $3.9 billion in gross proceeds
from non-core asset divestitures and investment sales.1 The
transaction is expected to close in the first quarter of 2025,
subject to certain conditions being satisfied.2
Under the terms of the agreement, Newmont expects to receive
gross proceeds of up to $275 million, which includes:
- Cash consideration of $100 million, due upon closing
- Deferred contingent cash consideration of $87.5 million upon
receipt of pending regulatory approvals3
- Deferred contingent cash consideration of $87.5 million upon
resolution of regulatory applications relating to the Carlton
Tunnel4
Upon completion of an updated regulator-approved closure plan
and in the event aggregate closure costs at CC&V exceed $500
million, Newmont will be responsible for funding 90% of the
incremental closure costs in such updated closure plan, either on
an as-incurred basis or pursuant to a net present value lump sum
payment option.
“We are excited to announce the continuation of our divestment
program to streamline the Newmont portfolio as the leading operator
of Tier 1 gold and copper assets,” said Tom Palmer, Newmont's
President and Chief Executive Officer. “We are confident that
SSR has the capability to deliver the next phase of life for
CC&V, the employees who work there, and local
stakeholders.”
Divestiture Program Progress
In February 2024, Newmont announced the intent to divest its
non-core assets, including six operations and two projects from its
Australian, Ghanaian, and North American business units. The sale
of Telfer operation and Newmont's 70% interest in the Havieron
project closed on December 4, 2024. With definitive agreements in
place to divest four other operations, the Company is focused on
completing the divesture program for its non-core assets, which are
expected to conclude in the first quarter of 2025.5
Total gross proceeds from transactions announced in 2024 to date
are expected to be up to $3.9 billion. This includes $3.4 billion
from non-core divestitures and $527 million from the sale of other
investments, detailed as follows:
- Up to $475 million from the sale of the Telfer operation and
Newmont's 70% interest in the Havieron project;
- Up to $1.0 billion from the sale of the Akyem operation;
- Up to $850 million from the sale of the Musselwhite
operation;
- $795 million from the sale of the Éléonore operation;
- Up to $275 million for the sale of the CC&V operation;
and
- $527 million from the completed sale of other investments,
including the sale of the Lundin Gold stream credit facility and
offtake agreement, and the monetization of Newmont's Batu Hijau
contingent payments.
Advisers and Counsel
In connection with the CC&V transaction, BMO Capital Markets
acted as financial adviser and Davis Graham & Stubbs LLP acted
as legal adviser.
About Newmont
Newmont is the world’s leading gold company and a producer of
copper, zinc, lead, and silver. The Company’s world-class portfolio
of assets, prospects and talent is anchored in favorable mining
jurisdictions in Africa, Australia, Latin America & Caribbean,
North America, and Papua New Guinea. Newmont is the only gold
producer listed in the S&P 500 Index and is widely recognized
for its principled environmental, social, and governance practices.
Newmont is an industry leader in value creation, supported by
robust safety standards, superior execution, and technical
expertise. Founded in 1921, the Company has been publicly traded
since 1925.
At Newmont, our purpose is to create value and improve lives
through sustainable and responsible mining. To learn more about
Newmont’s sustainability strategy and initiatives, go to
www.newmont.com.
Cautionary Statement Regarding Forward-Looking
Statements
This news release contains “forward-looking statements” within
the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended, which are intended to be covered by the safe harbor
created by such sections and other applicable laws. Where a
forward-looking statement expresses or implies an expectation or
belief as to future events or results, such expectation or belief
is expressed in good faith and believed to have a reasonable basis.
However, such statements are subject to risks, uncertainties and
other factors, which could cause actual results to differ
materially from future results expressed, projected or implied by
the forward-looking statements. Forward-looking statements in this
news release include, without limitation, (i) expectations
regarding outlook; (ii) statements regarding the sales of CC&V,
Éléonore, Musselwhite, Telfer and Havieron, and Akyem, including,
without limitation, expectations regarding timing and closing of
the pending transactions, including receipt of required approvals
and satisfaction of closing conditions; (iii) expectations
regarding receipt of consideration upon closing and receipt of any
deferred contingent cash consideration in the future; and (iv)
expectations regarding receipt of gross consideration; and (v)
other statements regarding future events or results. Estimates or
expectations of future events or results are based upon certain
assumptions, which may prove to be incorrect. Assumptions include,
but are not limited to: (i) certain exchange rate assumptions
approximately consistent with current levels; (ii) certain price
assumptions for gold, copper, silver, zinc, lead and oil; and (iii)
all closing conditions being satisfied.
Expectations regarding the divestment of assets held of sale are
subject to risks and uncertainties. Based on a comprehensive review
of the Company’s portfolio of assets, the Company’s announced a
portfolio optimization program to divest six non-core assets and a
development project in February 2024. The non-core assets to be
divested include CC&V, Musselwhite, Porcupine, Éléonore,
Telfer, and Akyem, and the Coffee development project. While the
Company concluded that these non-core assets and the development
project met the accounting requirements to be presented as held for
sale there is a possibility that the assets held for sale may
exceed one year, or not occur at all, due to events or
circumstances beyond the Company's control. As of the date of this
release, no binding agreements have been entered into with respect
to the sale of the Porcupine Operation or the Coffee development
project. See the September 10, 2024 press release for further
details re the agreement to divest Telfer and Havieron, the October
8, 2024 press release for further details re the agreement to
divest Akyem, the November 18, 2024 press release for further
details re the agreement to divest Musslewhite, and the November
25, 2024 press release for further details re the agreement to
divest Éléonore. Each are available on Newmont’s website. Closing
of such transactions remain subject to certain conditions as
indicated in such releases and notes thereto. No assurances can be
provided with respect to satisfaction of closing conditions, the
timing of closing of the transaction or receipt of contingent
consideration in the future. As noted in the footnotes to this
press release, the closing of the CC&V sale remains subject to
no material adverse change and no transaction-related litigation,
the completion of the pre-closing reorganization, and regulatory
approvals, including the Hart-Scott-Rodino Act review in the United
States.
For a discussion of risks and other factors that might impact
future looking statements and future results, see the Company’s
Annual Report on Form 10-K for the year ended December 31, 2023
filed with the U.S. Securities and Exchange Commission (the “SEC”)
on February 29, 2024, under the heading “Risk Factors", and other
factors identified in the Company's reports filed with the SEC,
available on the SEC website or at www.newmont.com. The Company
does not undertake any obligation to release publicly revisions to
any “forward-looking statement,” including, without limitation,
outlook, to reflect events or circumstances after the date of this
news release, or to reflect the occurrence of unanticipated events,
except as may be required under applicable securities laws.
Investors should not assume that any lack of update to a previously
issued “forward-looking statement” constitutes a reaffirmation of
that statement.
1
The estimated aggregate gross proceed
amount is inclusive of both closing consideration and possible
contingent consideration in connection with the sales of CC&V,
Éléonore, Musselwhite, Telfer and Havieron, and Akyem. Actual
results gross proceeds may differ. See cautionary statement at end
of this release regarding forward-looking statements, including
expectations regarding divestments and proceeds.
2
Closing conditions include: (i) no
material adverse change and/or transaction-related litigation and
(ii) regulatory approvals. See cautionary statement at the end of
this release regarding forward-looking statements.
3
Based on receipt of Amendment 14 approval
from applicable Colorado regulatory bodies, at state and county
levels. See cautionary statement at the end of this release
regarding forward-looking statements, including expectations of
regulatory resolutions.
4
Contingent payment upon resolution of
Carlton Tunnel related permit requirements, through
Discharger-Specific Variance (DSV) application or otherwise. See
cautionary statement at the end of this release regarding
forward-looking statements, including expectations of regulatory
resolutions.
5
See cautionary statement at end of this
release regarding forward-looking statements, including
expectations regarding divestments and proceeds.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20241205865134/en/
Investor Contact – Global Neil Backhouse
investor.relations@newmont.com
Investor Contact – Asia Pacific Natalie Worley
apac.investor.relations@newmont.com
Media Contact – Global Jennifer Pakradooni
globalcommunications@newmont.com
Newmont (NYSE:NEM)
Gráfica de Acción Histórica
De Nov 2024 a Dic 2024
Newmont (NYSE:NEM)
Gráfica de Acción Histórica
De Dic 2023 a Dic 2024
