Newmont Mining (ASX:NEM) has taken a significant step in its strategy to divest non-core assets by agreeing to sell its Telfer mine and a 70% stake in the nearby Havieron project in Western Australia to Greatland Gold (LSE:GGP).
In return, Newmont, the world’s leading gold producer, will receive a total consideration of US$475 million. This includes US$207.5 million in cash, US$167.5 million in Greatland shares, and a deferred cash payment of US$100 million based on future gold prices and production from the Havieron project. The deal is expected to be finalized in the fourth quarter of this year.
This sale marks the first major transaction in Newmont’s asset divestiture program, which was announced in February. Other assets in this program include the Éléonore, Musselwhite, Porcupine, CC&V, and Akyem mines.
Newmont’s CEO, Tom Palmer, expressed confidence in the sale, stating, "I am pleased that Telfer and Havieron are being sold to Greatland, a company with a highly experienced management team and board of directors. I have full confidence that the Greatland team will be outstanding stewards of these assets."
On Tuesday, Newmont’s shares rose 1.5% in Toronto, closing at $69.85, with a market valuation of $58.9 billion. Over the past year, the shares have traded within a range of $39.96 to $72.65. In London, Greatland Gold’s stock was priced at 6.95 pence, giving it a market value of £353.8 million.
Greatland Gold first discovered the Havieron gold-copper project in 2018, and the company has been developing it since then. Once the mine is fully operational, it will utilize infrastructure from the nearby Telfer mine. Earlier this year, Greatland stated it was in a strong position to consolidate ownership of Havieron.
Following the Telfer sale, Newmont has made slight revisions to its production guidance for non-core assets, forecasting 1.12 million ounces of gold and 1,000 tonnes of copper. However, its guidance for production from its Tier 1 assets remains unchanged.
"Including the Telfer divestiture, we continue to expect to generate at least US$2 billion from the sale of our high-quality, non-core assets, enabling us to focus on our Tier 1 portfolio," Palmer added.
Among the assets drawing considerable interest is Newmont's Akyem mine in Ghana, which is reportedly being pursued by major Chinese miners Shandong Gold and Zijin Mining, as well as Asante Gold, which already operates in Ghana.
