Newmont to Sell Telfer and Havieron Stake to Greatland Gold for US$475 Million

Newmont (TSX:NGT,NYSE:NEM) has announced a definitive agreement to sell its Telfer gold-copper operation and its 70 percent stake in the Havieron gold-copper project to Greatland Gold (LSE:GGP,OTC Pink:GRLGF).

The US$475 million deal also includes related interests in Australia's Paterson region, and is part of Newmont’s ongoing efforts to divest non-core assets following its US$26 billion acquisition of Newcrest Mining in 2023.

Newmont will receive US$207.5 million in cash at closing, as well as US$167.5 million in Greatland shares. There is also a potential deferred contingent cash payment of up to US$100 million based on future performance metrics.

As mentioned, the sale forms part of Newmont’s broader strategy to streamline its portfolio and focus on its Tier 1 assets, which are key to the company’s long-term operational and financial objectives.

"The transaction announced today represents the first asset sale in the divestiture program announced in February. I am pleased that Telfer and Havieron are being sold to Greatland, a company with a highly experienced management team and board of directors,” said Newmont President and CEO Tom Palmer on Tuesday (September 10).

He added that including the Telfer divestiture, the company expects to reach at least US$2 billion in total proceeds from the sale of non-core assets. In addition to honing in on its Tier 1 assets, Newmont hope to reduce its debt.

Telfer and Havieron were acquired as part of Newmont’s takeover of Newcrest Mining. While Telfer is an operational mine, Havieron is in development and holds significant potential for future copper and gold production.

Prior to the divestiture, Greatland held a 30 percent interest in Havieron. The deal solidifies the company's position in the Paterson region and enhances its future development plans for the area. The Telfer mine’s proximity to Havieron also adds synergies for Greatland, which aims to maximize the potential of both assets.

As a result of the divestment, Newmont has made small adjustments to its non-core production guidance for 2024.

However, the outlook for its Tier 1 portfolio remains unchanged, with gold production expected to reach approximately 6.75 million ounces in 2024 and copper production projected at around 145,000 metric tons.

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Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.