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Newmont Corporation (NEM) - free report >>
Kinross Gold Corporation (KGC) - free report >>
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Newmont (NEM) Sells Stake in Continental Gold for $260M
Newmont Corporation (NEM - Free Report) has successfully closed the divestment of its 19.9% equity stake and convertible bond in Continental Gold for a cash consideration of $260 million. The company stated that the sale was part of a contractual prearrangement for supporting Zijin Mining Group’s acquisition of Continental Gold.
Newmont’s latest move to divest Continental’s stake will support its disciplined approach to capital allocation, which includes strengthening its investment-grade balance sheet, returning excess cash to shareholders and investing in high-return projects.
Post the completion of the sale of Red Lake, which is expected this quarter, Newmont will have generated more than $1.4 billion in asset sales since the Goldcorp buyout. This includes the sale of its interests in KCGM and Continental Gold.
Newmont, which shares space with Agnico Eagle Mines Limited (AEM - Free Report) , Barrick Gold Corporation (GOLD - Free Report) and Kinross Gold Corporation (KGC - Free Report) , is a prominent gold mining company. The company reported adjusted earnings of 50 cents per share in fourth-quarter 2019, which beat the Zacks Consensus Estimate of 48 cents.
Newmont reported revenues of $2,967 million, up 44.9% year over year. However, the figure missed the Zacks Consensus Estimate of $3,105.4 million.
The company expects attributable gold production for 2020 to be 6.4 million ounces. For 2020, the all-in sustaining cost for gold is projected at $975 per ounce and the cost applicable to sales expectation for gold is $750 per ounce.
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