Newmont Divests Colorado Mine, Focuses on Core Gold and Copper Assets

Newmont Corporation (NYSE:NEM) has announced the sale of its Cripple Creek & Victor operation located in Colorado to SSR Mining Inc. for a total of up to $275 million in cash.

According to the details of the transaction, Newmont will receive up to $275 million in gross proceeds. This figure includes an initial payment of $100 million in cash at the time of closing.

In addition to the upfront cash payment, Newmont stands to gain $87.5 million in contingent cash, which is contingent upon obtaining necessary regulatory approvals that are currently pending.

Another payment of $87.5 million will be made once regulatory applications related to the Carlton Tunnel are resolved. Through this deal, Newmont continues its strategy of divesting non-core assets, having now reached gross proceeds of $3.9 billion from such transactions.

The completion of this sale is anticipated in the first quarter of 2025, subject to standard conditions and regulatory approvals.

As part of the agreement, Newmont will assume responsibility for 90% of any extra closure costs that exceed $500 million at the Cripple Creek & Victor site, based on an updated closure plan that has been approved by regulators.

This financial obligation can be addressed either through payments made as costs are incurred or as a lump-sum based on net present value.

“We are excited to announce the continuation of our divestment program to streamline the Newmont portfolio as the leading operator of Tier 1 gold and copper assets,” stated Tom Palmer, the President and Chief Executive Officer of Newmont.

Earlier in February 2024, Newmont had revealed intentions to shed non-core assets, encompassing six operations and two projects across its Australian, Ghanaian, and North American sectors.

With firm agreements already established for four additional operations, the company aims to conclude its non-core asset divestiture program by the first quarter of 2025.

The gross proceeds from all transactions announced in 2024 are projected to reach as high as $3.9 billion.

Recently, Newmont also finalized the sale of its Éléonore mine in Quebec to London-based Dhilmar for $795 million in cash.

Investors looking to gain exposure to Newmont's stock can do so through the iShares MSCI Global Gold Miners ETF and the VanEck Gold Miners ETF.

Price Action: Shares of NEM have increased by 0.97%, reaching $41.46 in the last trading session on Friday.

Photo: Shutterstock

This article was partially created with the assistance of AI tools and was reviewed for publication.

Newmont, Mining, Sale