Under the terms of the deal, Newmont will receive US$100 million in cash upon closing, with an additional US$175 million contingent on regulatory approvals and conditions related to the Carlton Tunnel.
Newmont has agreed to bear 90 percent of potential closure costs exceeding US$500 million under a future regulator-approved closure plan. The transaction is expected to close in the first quarter of 2025.
For the better part of the year, Newmont has prioritized divesting its non-core assets to focus on its Tier 1 gold and copper operations. It is aiming to achieve up to US$3.9 billion in proceeds through asset sales and other liquidations.
In addition, five standalone business units are being merged into three, eliminating divisions overseeing operations in Australia and Africa and integrating them with those managing North America and East Asia.
These changes come after Newmont’s acquisition of Newcrest Mining in 2023, which added significant gold and copper assets to its portfolio. The restructuring aims to reduce redundancy and optimize the organization for long-term success.
Despite a 30 percent increase in the gold price this year, Newmont’s share price performance has been modest, prompting internal reviews and discussions with investors about the company’s current approach.
Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.
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