2024 Tier 1 Portfolio Guidance Maintained,
Non-Core Guidance Updated
Newmont Corporation (NYSE: NEM, TSX: NGT, ASX: NEM, PNGX: NEM)
announces today, as part of its ongoing program to divest non-core
assets, it has agreed to sell the Telfer operation, Newmont’s 70%
interest in the Havieron gold-copper project (Havieron), and other
related interests in the Paterson region, all in Australia, to
Greatland Gold plc (AIM:GGP) (Greatland). The transaction is
expected to close in the fourth quarter of 2024, subject to certain
conditions being satisfied.1
Under the terms of the agreement, Newmont expects to receive
gross proceeds of up to $475 million, which includes:
- Cash consideration of $207.5 million, due upon on closing2
- 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
million3
"The transaction announced today represents the first asset sale
in the divestiture program announced in February. 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”, said Tom Palmer, Newmont's President and
Chief Executive Officer. "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 firmly on track to deliver on our 2024
commitments4. 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.
For more detailed guidance, see the Company’s 2024 Outlook
included in the second quarter earnings release dated July 24,
2024, available on newmont.com. Please see the cautionary statement
and footnotes for additional information.
Guidance Metric
2024E
Attributable Gold Production
(Koz)a
Managed Tier 1 Portfolio
4,100
Non-Managed Tier 1 Portfolio
1,530
Total Tier 1 Portfolio
5,630
(unchanged)
Non-Core Assets
1,120
Total Newmont Attributable Gold
Production (Koz)
6,750
Copper
Copper Production - Tier 1 Portfolio
(ktonne)
144
(unchanged)
Copper Production - Non-Core Assets
(ktonne)
1
Total Newmont Copper Production
(ktonne)
145
a
Attributable gold production includes
ounces from the Company's equity method investment in Pueblo Viejo
(40%) and in Lundin Gold (32.0%).
Advisers and Counsel
In connection with the transaction, Newmont engaged Macquarie
Capital as its financial adviser, and Allens and Linklaters as its
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 & the
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 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
newmont.com.
Cautionary Statement Regarding Forward
Looking Statements, Including Outlook Assumptions:
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 often
address our expected future business and financial performance and
financial condition; and often contain words such as “anticipate,”
“intend,” “plan,” “will,” “would,” “estimate,” “expect,” “believe,”
"pending" or “potential.” Forward-looking statements in this news
release may include, without limitation, (i) estimates of future
production and sales, including production outlook; (ii)
expectations regarding the sale of Telfer and Havieron, including,
without limitation, expectations regarding timing and closing of
the pending transaction, including receipt of required approvals
and satisfaction of all closing conditions (including without
limitation, the conditions set forth in footnotes contained on the
prior page of this release), and expectations regarding receipt of
cash and equity consideration upon closing and receipt of any
deferred contingent cash consideration in the future; (iii)
expectations regarding the progress of the divestiture program and
the sale of assets which have been designated as assets held for
sale; (iv) expectations regarding capital allocation priorities and
return capital to shareholders; (v) statements regarding the future
portfolio and financial or operating results. Estimates or
expectations of future events or results are based upon certain
assumptions, which may prove to be incorrect. Assumptions related
to outlook, include, but are not limited to: (i) there being no
significant change to current geotechnical, metallurgical,
hydrological and other physical conditions; (ii) permitting,
development, operations and expansion of operations and projects
being consistent with current expectations and mine plans; (iii)
political developments in any jurisdiction in which the Company
operates being consistent with its current expectations; (iv)
certain exchange rate assumptions for the Australian dollar to U.S.
dollar and Canadian dollar to U.S. dollar, as well as other
exchange rates being approximately consistent with current levels;
(v) certain price assumptions for gold, copper, silver, zinc, lead
and oil; (vi) prices for key supplies; (vii) the accuracy of
current mineral reserve, mineral resource and mineralized material
estimates; (viii) other planning assumptions; and (ix) all closing
conditions being satisfied as part of the sale of Telfer and
Havieron. Uncertainties include those relating to general
macroeconomic uncertainty and changing market conditions, changing
restrictions on the mining industry in the jurisdictions in which
we operate, impacts to supply chain, including price, availability
of goods, ability to receive supplies and fuel, and impacts of
changes in interest rates.
For a more detailed discussion of risks and other factors that
might impact future looking statements, 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 Closing of the transaction remains conditional on satisfaction
of certain conditions including: (i) Newmont and Greatland
receiving approval for the transaction from the Foreign Investment
Review Board (FIRB); (ii) transfer of key approvals and tenements;
(iii) assignment of key contracts and leases; (iv) obtaining
specific environmental licenses; (iv) restart of operations at
Telfer following remediation of TSF8; and (v) other customary
closing conditions. See cautionary statement at the end of this
release regarding forward-looking statements. 2 Includes $155.1m of
acquisition consideration (subject to certain adjustments) and a
$52.4m repayment of the outstanding joint venture loan. The ratio
of cash and equity consideration is subject to adjustment based on
the outcome of the capital raising to be undertaken by Greatland in
connection with this divestment. 3 Up to a maximum $100.0 million
in deferred consideration may be payable to Newmont in cash through
a gold price linked payment structure with a 50% price upside
participation by Newmont in respect of gold produced from Havieron
for 5 calendar years following the declaration of commercial
production, subject to a hurdle price of $1,850/oz. Deferred
consideration for the relevant year will be equal to 50% x (market
price – hurdle price) x sum of total gold sold for the relevant
year (inc. doré and concentrate), subject to the annual cap and the
total cap. The applicable annual cap is $50 million and the total
cap is $100 million. 4 Outlook and Guidance Metrics contained in
the release are forward-looking statements. See cautionary
statement at the end of this release.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240908941675/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
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