Newmont sells Telfer, Havieron stake to Greatland Gold for US$475M

As part of its efforts to offload non-core assets, Newmont (NYSE: NEM, TSX: NGT, ASX: NEM, PNGX: NEM) has agreed to sell its Telfer mine and a 70% stake in the nearby Havieron project in Western Australia to Greatland Gold (LSE: GGP).

In exchange, the world’s leading gold miner expects to receive US$207.5 million in cash, US$167.5 million in Greatland shares, and a deferred cash payment of US$100 million linked to gold prices and production from Havieron, Newmont said on Tuesday. The deal is expected to close in this year’s fourth quarter.

The transaction, valued at US$475 million, represents the first asset sale in Newmont’s divestiture program announced in February. Other assets named in this program include the Éléonore, Musselwhite, Porcupine, CC&V and Akyem mines.

“I am pleased that Telfer and Havieron are being sold to Greatland, a company with a highly experienced management team and board of directors,” Newmont CEO Tom Palmer said in a release. “I have full confidence that the Greatland team will be outstanding stewards of these assets.” 

Shares in Newmont closed 1.5% higher in Toronto on Tuesday at $69.85 apiece, valuing the company at $58.9 billion. They’ve traded in a 52-week range of $39.96 to $72.65. Greatland Gold stock was at 6.95 pence each in London for a market value of £353.8 million. 

Havieron project

Earlier this year, Greatland stated that it was “in a strong position” to consolidate ownership of the Havieron gold-copper project, which the Australian junior first discovered in 2018 and has been working on since. Once built, the mine would rely on existing infrastructure from the Telfer mine.

Following the sale of Telfer, Newmont has made a minor adjustment to its gold and copper production guidance from its non-core asset base, now totalling 1.12 million oz. gold and 1,000 tonnes of copper. Production guidance from tier-one assets remains unchanged.

“Including the Telfer divestiture, we continue to expect to reach at least US$2 billion in total proceeds from the sale of our high-quality, non-core assets, enabling us to focus attention on our suite of Tier 1 assets,” Palmer added.

One asset that has been drawing plenty of interest is the Akyem mine in Ghana, which is said to be targeted by top Chinese miners Shandong Gold and Zijin Mining. It is also expecting a bid from Asanta Gold, which is already has operations in the African nation.