Newmont completes KCGM stake sale, updates outlook

According to Mining News Pro - “Newmont is pleased to complete the sale of KCGM to Northern Star and hand over the asset in good order to a well-established gold producer with a commitment to safety, community development and responsible environmental practices,” president and CEO Tom Palmer said in a media brief.

“Proceeds from the transaction will support Newmont’s disciplined approach to capital allocation, which includes strategically reinvesting in the business, strengthening the company’s investment-grade balance sheet and returning cash to shareholders,” Palmer added.

Combined with its prior agreements to sell Red Lake in Canada for $375 million and the company’s stake in Continental Gold for $260 million, Newmont has met its divestiture target of $1-$1.5 billion, with more than $1.4 billion in cash proceeds expected in the first quarter of 2020.

In addition, Newmont has updated its 2020 guidance and long-term outlook. For the new year, the company expects to produce 6.4 million ounces of gold across all operations (including Pueblo Viejo) at an AISC of $975 per ounce.

In the long run, production guidance is set at between 6.2 and 6.7 million ounces through 2024 at an AISC of $850-$950 per ounce for 2021-2022 and $800-$900 per ounce for 2023-2024.

The company’s capital guidance has been lowered to $950 million for 2020 and between $0.9-$1.1 billion longer term through 2024.