Newmont to sell Akyem for up to $1.49b

Newmont Corporation (ASX: NEM) has revealed it will be selling its Akyem operation in the Republic of Ghana to Zijin Mining Group for up to $1.49b (US$1b).

This sale is part of Newmont’s continuing program to divest its non-core assets as it makes a strategic shift to focus on its Tier 1 assets.

Under the agreement, Newmont is expected to receive cash consideration of $1.33b (US$900m) upon closing, with a further $148m (US$100m) expected to be received upon the satisfaction of certain conditions, including regulatory approvals.

Newmont president and chief executive Tom Palmer commented on the divestment.

“The sale of Akyem represents continued progress on the non-core asset divesture program announced in February, supporting our focus on the Tier 1 assets in Newmont’s portfolio that will drive sustainable growth and the return of capital to shareholders,” he said.

“The successful completion of this transaction will strengthen our confidence in Ghana as a favourable mining jurisdiction and Newmont will continue to support the growth and development of the region, including our development of Ahafo North.”

The transaction is expected to close in the fourth quarter of 2024 and as a result, the transaction is not expected to have a material impact on Newmont’s 2024 outlook.

In February 2024, Newmont announced it would be divesting six non-core assets, including Éléonore, Musselwhite and Porcupine in Canada, CC&V in the US, Akyem in Ghana and Telfer in WA, plus two non-core projects, Havieron in WA and Coffee in Canada.

“This portfolio provides our shareholders with exposure to the highest concentration of Tier 1 assets in the sector, each with the scale and mine life to generate strong free cash flows and all located in the world’s most favourable mining jurisdictions,” Mr Palmer said at the time.

“As we look forward to this very important year of integration and transformation, I am confident in the quality of our assets and the capability of our team to deliver on our commitments, return capital to shareholders and justify our position as the benchmark gold equity.”