Newmont Corp., trading under symbols NEM, NGT.TO, and NEM.AX, has announced its decision to sell its Akyem operation, located in the Republic of Ghana, to Zijin Mining Group Co., Ltd. for a total cash consideration of up to $1 billion. This move is in alignment with Newmont's strategic initiative to divest non-core assets and concentrate its efforts on Tier 1 assets.
According to the agreement, Newmont is set to receive an immediate cash payment of $900 million once the deal closes. An additional $100 million is anticipated upon fulfillment of specified conditions.
The revenue from this sale will be allocated towards Newmont's capital allocation priorities, which include enhancing the company's balance sheet and returning value to shareholders.
The transaction is anticipated to conclude in the fourth quarter of 2024. It is projected that this sale will not significantly affect Newmont's 2024 financial outlook, and the company has not revised its guidance regarding non-core assets for that year.
Despite the sale, Newmont reaffirmed its commitment to Ghana, highlighting plans to invest between $950 million and $1.05 billion into the Ahafo North gold mining project in the Ahafo region.
