Newmont Corporation has announced a definitive agreement to sell its Akyem operations to Zijin Mining Group Co., Ltd. for cash consideration of up to $1 billion. This strategic divestiture is part of Newmont’s ongoing efforts to focus on its Tier 1 assets and streamline its portfolio.
Under the terms of the agreement, Newmont is set to receive $900 million at closing, with an additional $100 million contingent on the satisfaction of certain conditions. The proceeds from this transaction will bolster Newmont’s capital allocation priorities, which include strengthening the balance sheet and returning capital to shareholders.
According to a statement, the sale is expected to close in the fourth quarter of 2024, subject to customary conditions, including regulatory approvals. Notably, this transaction is not anticipated to significantly impact Newmont’s outlook for 2024, and the company has not revised its non-core guidance for the year.
Newmont’s President and CEO, Tom Palmer, expressed confidence that the Akyem operations will flourish under new ownership, benefitting local stakeholders and communities in the long run.
Additionally, Newmont Corporation remains committed to its operations in Ghana, planning to invest between $950 million and $1.05 billion in the Ahafo North gold mining project located in the Ahafo region.
This strategic move reflects Newmont’s focus on enhancing its core operations while ensuring that local communities continue to thrive. As the transaction progresses, Newmont Corporation is poised to strengthen its market position and deliver long-term value to shareholders.
Source: DEW360.NET
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