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On Tuesday, Newmont Corporation (NYSE:NEM) disclosed the sale of its Akyem operation in Ghana to Zijin Mining Group for up to $1 billion in cash.
This divestment aligns with Newmont’s strategy to focus on its Tier 1 assets and streamline its portfolio.
As per the deal, Newmont will receive $900 million in cash at closing and an additional $100 million contingent on meeting certain conditions.
The proceeds are expected to be used to support its capital allocation priorities, including strengthening its balance sheet and returning capital to shareholders.
The transaction is expected to close in the fourth quarter of 2024, pending regulatory approvals and customary conditions, and it will have no material impact on Newmont’s 2024 outlook.
Newmont has not adjusted its non-core guidance for the year. The company remains committed to Ghana, with plans to invest $950 million to $1.050 billion in the Ahafo North gold mining project.
Tom Palmer, Newmont’s President and Chief Executive Officer, said, “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.”
Rahman Amoadu, Newmont Managing Director, Africa, stated, “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.”
“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.”
Investors can gain exposure to the stock via iShares MSCI Global Gold Miners ETF (NASDAQ:RING).
Price Action: NEM shares are up 0.36% at $52.93 premarket at the last check Wednesday.
Image via Shutterstock
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