Newmont Sells Colorado Mine For $275 Million, Refocuses On Gold and Copper

Newmont Corporation (NYSE:NEM) has announced an important deal involving the sale of its Cripple Creek & Victor operation located in Colorado. The buyer is SSR Mining Inc., and the transaction could result in up to $275 million in cash for Newmont.

The sale agreement stipulates that Newmont will receive an initial cash payment of $100 million at the closing of the deal, which is projected to occur in the first quarter of 2025, pending the usual regulatory approvals.

In addition to the initial cash payment, Newmont could earn up to $87.5 million in contingent cash once it secures the necessary regulatory approvals. An additional $87.5 million will be paid upon the resolution of regulatory applications concerning the Carlton Tunnel.

This sale is part of Newmont's broader strategy to streamline its operations and focus more on gold and copper mining. So far, the company has raised approximately $3.9 billion from non-core asset sales and investments.

The deal is consistent with Newmont's ongoing efforts to optimize its portfolio. Recently, the company also elaborated on its plans to divest several non-core assets across various countries, including Australia, Ghana, and North America. These plans encompass six operations and two projects.

Newmont aims to conclude its non-core asset divestiture program by the first quarter of 2025, with four additional operations already under definitive agreements. The total expected gross proceeds from these transactions in 2024 could reach $3.9 billion.

In a related move, last month Newmont sold its Éléonore mine in Quebec to London-based Dhilmar for an impressive $795 million in cash.

The company will also take on 90% of any additional closure costs exceeding $500 million at the Cripple Creek & Victor operation, as outlined in a recently approved closure plan by regulators. This financial support can be provided either as needed or as a lump-sum payment based on net present value.

Newmont’s President and Chief Executive Officer, Tom Palmer, expressed enthusiasm for the company's ongoing divestment program, highlighting it as a way to maintain its status as a leading operator in Tier 1 gold and copper assets.

For investors looking to gain exposure to Newmont’s stock, it is available through various exchange-traded funds (ETFs) such as the iShares MSCI Global Gold Miners ETF (RING) and the VanEck Gold Miners ETF (GDX).

As of the latest market data, shares of Newmont (NEM) saw an increase of 0.97%, bringing the share price to $41.46.

Newmont, Mining, SSR