Newmont Corporation has made further progress on the divestiture program it announced in February 2024, with the decision to sell the Telfer operation, its 70 per cent interest in the Havieron gold-copper project and other related interests.
The agreement will see the involved assets, all of which are in the Paterson region in Australia, sold to Greatland Gold. Subject to certain conditions being satisfied, the transaction is expected to close in the fourth quarter of 2024.
Under the terms of the agreement, Newmont expects to receive gross proceeds of up to $475 million, including:
- Cash consideration of $207.5 million, due upon on closing
- Equity consideration of $167.5 million in the form of Greatland shares, to be issued upon closing
- Deferred contingent cash consideration of up to $100 million
Newmont’s President and CEO, Tom Palmer, said the transaction with Greatland Gold represents the first asset sale in the divestiture program.
“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.”
“Including the Telfer divestiture, we continue to expect to reach at least $2 billion in total proceeds from the sale of our high-quality, non-core assets, enabling us to focus attention on our suite of Tier 1 assets, further reduce debt, and return capital to shareholders.”
Newmont remains on track to deliver on its 2024 commitments. With the expectation that the transaction will close in the fourth quarter of 2024, Newmont has made minor adjustments to its non-core gold and copper production guidance to reflect the Telfer divestiture, which was classified as “held for sale” in Newmont’s financial statements.
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