DENVER - Newmont Corporation (NYSE: NEM), a leading gold and copper producer, has entered into an agreement to sell its Cripple Creek & Victor (CC&V) operation in Colorado to SSR Mining (NASDAQ:SSRM) Inc. for a potential total of $275 million in cash. This deal is part of Newmont's ongoing strategy to divest non-core assets, with total gross proceeds from such sales in 2024 expected to reach up to $3.9 billion.
The transaction's financial structure includes an initial cash payment of $100 million upon closing, with additional deferred contingent cash considerations of $87.5 million each, dependent on regulatory approvals and the resolution of regulatory applications related to the Carlton Tunnel. If closure costs at CC&V exceed $500 million, Newmont will cover 90% of the excess.
This sale contributes to Newmont's broader divestiture program, initiated in February 2024, which aims to streamline its portfolio by offloading six operations and two projects across Australia, Ghana, and North America. The company recently closed the sale of the Telfer operation and its 70% stake in the Havieron project on December 4, 2024. Newmont anticipates finalizing the divestiture program by the first quarter of 2025. The company's strategic moves come amid strong revenue growth of 53.66% in the last twelve months, with analysts expecting continued sales growth this year, according to InvestingPro data.
Tom Palmer, President and CEO of Newmont, expressed confidence in SSR Mining's capability to manage CC&V's future operations and its commitment to the local community and workforce.
The CC&V sale is subject to customary closing conditions, including regulatory approvals and no significant adverse changes or litigation related to the transaction. BMO Capital Markets served as financial adviser, while Davis Graham & Stubbs LLP provided legal counsel for the deal.
Newmont, with a portfolio of assets across several continents, is recognized for its environmental, social, and governance practices and is the only gold producer in the S&P 500 Index. The company's strategy is focused on creating value through sustainable and responsible mining.
This news article is based on a press release statement and contains forward-looking statements subject to risks, uncertainties, and other factors that could cause actual results to differ materially from those projected. Investors are cautioned not to place undue reliance on these forward-looking statements.
In other recent news, Newmont Corporation has undergone significant leadership changes, with Brian Tabolt stepping into the role of Chief Accounting Officer and Group Head of Finance. Concurrently, Joshua Cage will transition to the role of Global Controller and Head of Operations Accounting. Newmont has also agreed to sell its Musselwhite mine in Ontario, Canada, to Orla Mining Ltd for up to $850 million, a step in the company's ongoing strategy to divest non-core assets.
UBS has revised its stance on Newmont, downgrading the stock from Buy to Neutral due to disappointing third-quarter results and lowered medium-term production forecasts. Despite this, Newmont's Q3 2024 financial results revealed steady gold production and a focus on cost management, generating $1.6 billion in cash flow from operations. The company also initiated a $2 billion share repurchase program and returned $786 million to its shareholders.
These recent developments highlight Newmont's strategic financial management and commitment to shareholder value, as well as its ongoing efforts to navigate the complexities of the global gold market.
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