Newmont Concludes Stake Sale in Australian Open Pit Gold Mine

SEATTLE (Scrap Monster): Newmont Goldcorp Corporation announced that it has completed the sale of its 50% stake in Kalgoorlie Consolidated Gold Mines (KCGM) and associated assets to Australian Northern Star Resources Limited. The company has received $800 million in cash against the transaction.

Announcing the decision, Tom Palmer, President and CEO, Newmont said that the company is pleased to complete the sale by handing over the asset in good order. The proceeds from the sale will support Newmont’s capital allocation plan, aimed at further strengthening the company’s investment-grade balance sheet and delivering superior returns to shareholders, he added.

The sale deal was part of the company’s divestiture target of $1-$1.5 billion. It must be noted that the company has already reached agreements to sell Red Lake in Canada for $375 million and its stake in Continental Golf for $260 million.

Newmont updated its outlook. Accordingly, the company expects production of 6.4 million ounces of gold across all its operations in 2020. Also, it has revised its production guidance through 2024 to between 6.2 and 6.4 million ounces. At the same time, the capital guidance for the current year has been lowered to $950 million. The capital guidance for the longer term through 2024 has been revised to $0.9-$1.1 billion.