DENVER – (COMMERCIAL THREAD) – Newmont (NYSE: NEM, TSX: NGT) (Newmont or the Company) has agreed to sell its Kalgoorlie power business to Australian company Northern Star Resources Limited (ASX: NST) (Northern Star).
Under the deal, Newmont receives $ 95 million in cash, including the option payment of $ 25 million previously received from Northern Star in connection with its purchase of Newmont’s 50% stake in Kalgoorlie Consolidated Gold Mines (KCGM) in 2020.
Kalgoorlie’s electrical business has been a profitable asset for Newmont since the sale of its stake in KCGM. Kalgoorlie’s power business supplies power to KCGM through a series of contracts, licenses, approvals and arrangements with third parties, including a 50% stake in the 110 dual fuel gas turbine. MW Parkeston Power Station near Kalgoorlie, owned in a joint venture with Canada’s energy utility, TransAlta Corporation.
“Australia is a critical contributor to Newmont’s global portfolio of world-class assets, located in leading jurisdictions. With the sale of this non-core asset, we will continue to focus on creating long-term value in our Boddington and Tanami operations and advancing our future portfolio of projects through active exploration campaigns, ”said said Tom Palmer, President and CEO of Newmont.
Newmont is the world’s largest gold company and a producer of copper, silver, zinc and lead. The Company’s portfolio of world-class assets, prospects and talent is anchored in favorable mining jurisdictions in North America, South America, Australia and Africa. Newmont is the only gold producer listed in the S&P 500 Index and is widely recognized for its principled environmental, social and governance practices. The company is an industry leader in value creation, backed by robust security standards, superior execution and technical expertise. Newmont was founded in 1921 and has been listed on the stock exchange since 1925.
At Newmont, our goal is to create value and improve lives through sustainable and responsible mining. To learn more about Newmont’s sustainability strategy and initiatives, visit us at www.newmont.com.
This press release may contain “forward-looking statements” within the meaning of securities laws, including the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements relating to expectations regarding the closing of the sale. of the power business, expectations regarding future operating and commercial results, including long-term value at Boddington and Tanami, and expectations regarding exploration campaigns. Forward-looking statements may be accompanied by terminology such as “will” or comparable terminology. Forward-looking statements provide the Company’s current expectations regarding future events, but such statements are not guarantees of future results or performance and involve certain risks, uncertainties and assumptions that are difficult to predict or beyond our control. Investors should not place undue reliance on forward-looking statements and should take into account the uncertainties and risks discussed in the company’s annual report on Form 10-K for the year ended December 31, 2020 and in the company’s quarterly report. on Form 10-Q for the quarter ended September 30, 2021, under the heading “Risk Factors”, which are filed with the United States Securities and Exchange Commission (the “SEC”) and available on the website of the SEC or www.newmont.com, as well as other Filings with the SEC. The Company does not undertake to issue revisions of any “forward-looking statement”, to reflect events or circumstances after the date of this press release, or to reflect the occurrence of unforeseen events, except as may be required. under applicable securities. laws.