Newmont's Ghana Gold Mine Sale Targets $2B, Attracts Chinese Giants
Newmont Corporation (NYSE:NEM) has reportedly initiated the sale of its Akyem gold mine in Ghana, drawing interest from Chinese producers due to rising gold prices.
Newmont, headquartered in Denver, has engaged Citigroup, Inc. (NYSE:C) for the sale and has begun reaching out to potential buyers, Bloomberg reported.
Shandong Gold Mining Co. and Zijin Mining Group Co. are among the companies expressing initial interest in the asset, according to the report, citing people familiar with the matter.
Chifeng Jilong Gold Mining Co. is also evaluating Akyem, while Australian miner Perseus Mining Ltd. expressed interest in the asset last month, Bloomberg added.
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Newmont seeks to generate $2 billion in cash through divestitures following its acquisition of Newcrest Mining Ltd. in November.
Apart from Akyem, the company aims to offload four gold mines in North America and one in Australia, Bloomberg added.
Last month, the company said it intends to divest six non-core assets including Éléonore, Musselwhite, Porcupine, CC&V, Akyem, and Telfer, as well as two non-core projects, including Havieron and Coffee.
By auctioning assets, Newmont hopes to reduce its debt load by $1 billion in the short term. Palmer also intends to achieve $100 million in free cash flow by integrating Newmont and Newcrest, and cutting jobs.
Looking ahead to 2025 and beyond, Newmont expects its portfolio to improve gold production to 6.7 million ounces by 2028.
NEM stock has lost over 29% in the past year. Investors can gain exposure to the stock via IShares MSCI Global Gold Miners ETF (NASDAQ:RING) and VanEck Gold Miners ETF (NYSE:GDX).
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