Transaction in-line with strategy to focus on
Tier 1 asset portfolio
Newmont Corporation (NYSE: NEM, TSX: NGT, ASX: NEM, PNGX: NEM)
(“Newmont” or the “Company”) has announced today it will sell its
Akyem operation in the Republic of Ghana to Zijin Mining Group Co.,
Ltd. (“Zijin”) under a definitive agreement, for cash consideration
of up to $1 billion. The sale is part of Newmont’s ongoing program
to divest non-core assets as the Company makes a strategic shift to
focus on its Tier 1 assets.
Under the terms of the agreement, Newmont is expected to receive
cash consideration of $900 million upon closing. A further $100
million is expected to be received upon the satisfaction of certain
conditions.1
Proceeds from the transaction will support the Company’s capital
allocation priorities, including strengthening the balance sheet
and returning capital to shareholders.
“The sale of Akyem represents continued progress on the non-core
asset divestiture program announced in February, supporting our
focus on the Tier 1 assets in Newmont’s portfolio that will drive
sustainable growth and the return of capital to shareholders,” said
Tom Palmer, Newmont’s President and Chief Executive Officer.
“We believe the proposed transaction results in the greatest
overall value for Newmont shareholders and is the best strategic
fit for Akyem. We are confident that Akyem will continue to thrive
under new ownership with long-term benefits for local stakeholders
and surrounding communities. The successful completion of this
transaction will strengthen our confidence in Ghana as a favorable
mining jurisdiction and Newmont will continue to support the growth
and development of the region including our development of Ahafo
North.”
“In line with President Afuko-Addo's address in February we
ensured that our robust divestment process provided equal
opportunity for all potential buyers, Ghanaian and international,
to participate,” said Rahman Amoadu, Newmont Managing Director,
Africa. “Additionally, we have included the Minerals Income
Investment Fund (MIIF) in the process in preparation of their
potential investment in Akyem to further Ghanaian interest in the
mine.”
The transaction is expected to close in the fourth quarter of
2024, contingent on satisfaction of customary conditions precedent,
including regulatory approvals. As a result, the transaction is not
expected to have a material impact on Newmont’s 2024 outlook and
the Company has not adjusted its non-core guidance for the
year.
Newmont remains committed to Ghana including the investment of
$950 million to $1,050 million of development capital in the Ahafo
North gold mining project in the Ahafo region of Ghana.
Advisers and Counsel
In connection with the transaction, Citi acted as Newmont’s
exclusive financial adviser, Treadstone Resource Partners acted as
strategic adviser, and Davis Graham & Stubbs LLP and Reindorf
Chambers acted as legal advisers.
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 and 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 Q4 and 2024 outlook; (ii) statements regarding the sale
of Akyem including, without limitation, expectations regarding
timing and closing of the pending transaction, including receipt of
required approvals and satisfaction of closing conditions (see
below for additional information); (iii) expectations regarding
receipt of consideration and government ratification of mining
leases (see below for additional information); (iv) expectations
regarding use of sale proceeds, capital allocation priorities, and
return capital to shareholders; 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. The closing of the transaction is subject to
the satisfaction of certain customary conditions precedent,
including but not limited to, Zijin obtaining the necessary
filings, approvals, or registrations from the National Development
and Reform Commission, the Ministry of Commerce and the State
Administration of Foreign Exchange of the People’s Republic of
China, and the parties receipt of a no objections letter from the
Minister of Lands and Natural Resources of the Republic of Ghana. A
failure to satisfy these conditions precedent would delay and/or
prevent closing of the transaction. Similarly, receipt of $900
million in cash consideration is subject to closing of the
transaction, and an additional $100 million in cash consideration
is expected to be paid after the earliest to occur of the
ratification of the extended eastern mining lease by the Parliament
of Ghana, the ratification of a replacement mining lease to the
extended eastern mining lease by the Parliament of Ghana and the
five year anniversary of the closing date. The purchase price
payable at the closing is subject to adjustments for closing cash,
working capital, inventory, finished goods inventory, and other
customary purchase price adjustment items. If Zijin were to suffer
certain losses in the future in connection with the lack of
ratifications of the mining leases by the Parliament of Ghana, then
Newmont will provide indemnification upon certain agreed
conditions, up to an aggregate amount not exceeding $200 million in
aggregate based on a $1 billion purchase price. The definitive
agreement for the transaction also includes representations,
warranties, covenants, termination rights and other provisions
customary for a transaction of this nature including with respect
to transition services, tax matters, employee matters,
indemnification, and dispute resolution. 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 closing of the transaction and
receipt of consideration remains subject to the satisfaction of
certain customary conditions precedents, with contingent
consideration also remaining subject to ratification of the
underlying lease. See cautionary statement regarding
forward-looking statements and additional information on
conditions.
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version on businesswire.com: https://www.businesswire.com/news/home/20241008161026/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
Media Contact – Asia Pacific Rosalie Cobai
australiacommunications@newmont.com
Grafico Azioni Newmont (NYSE:NEM)
Storico
Da Ott 2024 a Nov 2024
Grafico Azioni Newmont (NYSE:NEM)
Storico
Da Nov 2023 a Nov 2024
