Newmont Announces Agreement to Divest CC&V for up to $275 Million

Rhea-AI Summary

Newmont has agreed to sell its Cripple Creek & Victor (CC&V) operation in Colorado to SSR Mining for up to $275 million in cash consideration. The deal includes $100 million cash at closing and two deferred payments of $87.5 million each, contingent on regulatory approvals.

This transaction is part of Newmont's broader divestment program of non-core assets, which has generated up to $3.9 billion in gross proceeds from announced transactions in 2024. This includes $3.4 billion from non-core divestitures and $527 million from investment sales. The CC&V transaction is expected to close in Q1 2025.

The company will retain 90% responsibility for incremental closure costs if they exceed $500 million after an updated regulator-approved closure plan.

Positive

• Expected to receive up to $275 million in cash consideration from CC&V sale
• Total divestiture program generating up to $3.9 billion in gross proceeds
• Strategic portfolio optimization focusing on Tier 1 gold and copper assets

Negative

• Retains 90% liability for closure costs exceeding $500 million at CC&V
• Contingent payments of $175 million dependent on regulatory approvals

Insights

Financial Analyst

The divestiture of CC&V for up to $275 million is part of Newmont's larger strategic portfolio optimization, which has now generated up to $3.9 billion in gross proceeds. This strategic move strengthens Newmont's balance sheet and aligns with their focus on Tier 1 assets. The structured deal, including $100 million upfront and two $87.5 million contingent payments, helps mitigate execution risks while maintaining upside potential.

The closure cost arrangement, where Newmont retains 90% liability for costs exceeding $500 million, represents a significant contingent liability that investors should monitor. This broader divestiture program, including six operations and two projects, demonstrates Newmont's commitment to portfolio optimization and operational efficiency. The expected completion in Q1 2025 provides a clear timeline for investors to track the company's transformation.

Mining Industry Expert

The divestiture of CC&V represents a strategic shift in Newmont's portfolio management, focusing on higher-grade Tier 1 assets. The structured payment approach, particularly the contingent payments tied to regulatory approvals and Carlton Tunnel resolution, reflects the complex regulatory environment in mining operations. The retention of significant closure cost liability suggests potential environmental challenges that required careful negotiation.

This transaction, alongside other divestitures including Telfer, Havieron, Akyem, Musselwhite and Éléonore, indicates Newmont's decisive move toward streamlining operations. The successful execution of these deals, totaling $3.4 billion from non-core assets, positions Newmont as a more focused operator with an optimized portfolio of premium assets. This strategic realignment should lead to improved operational efficiency and potentially higher margins.

Divestitures Announced to Date to Generate up to $3.9 Billion in Gross Proceeds

DENVER--(BUSINESS WIRE)-- Newmont Corporation (NYSE: NEM, TSX: NGT, ASX: NEM, PNGX: NEM) (“Newmont” or the “Company”) announced today that it has agreed to sell its Cripple Creek & Victor (“CC&V”) operation in Colorado, USA, to SSR Mining Inc. (“SSR”) for up to $275 million in cash consideration. Upon closing the announced transactions, Newmont will have delivered up to $3.9 billion in gross proceeds from non-core asset divestitures and investment sales.¹ The transaction is expected to close in the first quarter of 2025, subject to certain conditions being satisfied.²

Under the terms of the agreement, Newmont expects to receive gross proceeds of up to $275 million, which includes:

• Cash consideration of $100 million, due upon closing
• Deferred contingent cash consideration of $87.5 million upon receipt of pending regulatory approvals³
• Deferred contingent cash consideration of $87.5 million upon resolution of regulatory applications relating to the Carlton Tunnel⁴

Upon completion of an updated regulator-approved closure plan and in the event aggregate closure costs at CC&V exceed $500 million, Newmont will be responsible for funding 90% of the incremental closure costs in such updated closure plan, either on an as-incurred basis or pursuant to a net present value lump sum payment option.

“We are excited to announce the continuation of our divestment program to streamline the Newmont portfolio as the leading operator of Tier 1 gold and copper assets,” said Tom Palmer, Newmont's President and Chief Executive Officer. “We are confident that SSR has the capability to deliver the next phase of life for CC&V, the employees who work there, and local stakeholders.”

Divestiture Program Progress

In February 2024, Newmont announced the intent to divest its non-core assets, including six operations and two projects from its Australian, Ghanaian, and North American business units. The sale of Telfer operation and Newmont's 70% interest in the Havieron project closed on December 4, 2024. With definitive agreements in place to divest four other operations, the Company is focused on completing the divesture program for its non-core assets, which are expected to conclude in the first quarter of 2025.⁵

Total gross proceeds from transactions announced in 2024 to date are expected to be up to $3.9 billion. This includes $3.4 billion from non-core divestitures and $527 million from the sale of other investments, detailed as follows:

• Up to $475 million from the sale of the Telfer operation and Newmont's 70% interest in the Havieron project;
• Up to $1.0 billion from the sale of the Akyem operation;
• Up to $850 million from the sale of the Musselwhite operation;
• $795 million from the sale of the Éléonore operation;
• Up to $275 million for the sale of the CC&V operation; and
• $527 million from the completed sale of other investments, including the sale of the Lundin Gold stream credit facility and offtake agreement, and the monetization of Newmont's Batu Hijau contingent payments.

Advisers and Counsel

In connection with the CC&V transaction, BMO Capital Markets acted as financial adviser and Davis Graham & Stubbs LLP acted as legal adviser.

About Newmont

Newmont is the world’s leading gold company and a producer of copper, zinc, lead, and silver. The Company’s world-class portfolio of assets, prospects and talent is anchored in favorable mining jurisdictions in Africa, Australia, Latin America & Caribbean, North America, and Papua New Guinea. 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. Newmont is an industry leader in value creation, supported by robust safety standards, superior execution, and technical expertise. Founded in 1921, the Company has been publicly traded since 1925.

At Newmont, our purpose is to create value and improve lives through sustainable and responsible mining. To learn more about Newmont’s sustainability strategy and initiatives, go to www.newmont.com.

Cautionary Statement Regarding Forward-Looking Statements

This news release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are intended to be covered by the safe harbor created by such sections and other applicable laws. Where a forward-looking statement expresses or implies an expectation or belief as to future events or results, such expectation or belief is expressed in good faith and believed to have a reasonable basis. However, such statements are subject to risks, uncertainties and other factors, which could cause actual results to differ materially from future results expressed, projected or implied by the forward-looking statements. Forward-looking statements in this news release include, without limitation, (i) expectations regarding outlook; (ii) statements regarding the sales of CC&V, Éléonore, Musselwhite, Telfer and Havieron, and Akyem, including, without limitation, expectations regarding timing and closing of the pending transactions, including receipt of required approvals and satisfaction of closing conditions; (iii) expectations regarding receipt of consideration upon closing and receipt of any deferred contingent cash consideration in the future; and (iv) expectations regarding receipt of gross consideration; and (v) other statements regarding future events or results. Estimates or expectations of future events or results are based upon certain assumptions, which may prove to be incorrect. Assumptions include, but are not limited to: (i) certain exchange rate assumptions approximately consistent with current levels; (ii) certain price assumptions for gold, copper, silver, zinc, lead and oil; and (iii) all closing conditions being satisfied.

Expectations regarding the divestment of assets held of sale are subject to risks and uncertainties. Based on a comprehensive review of the Company’s portfolio of assets, the Company’s announced a portfolio optimization program to divest six non-core assets and a development project in February 2024. The non-core assets to be divested include CC&V, Musselwhite, Porcupine, Éléonore, Telfer, and Akyem, and the Coffee development project. While the Company concluded that these non-core assets and the development project met the accounting requirements to be presented as held for sale there is a possibility that the assets held for sale may exceed one year, or not occur at all, due to events or circumstances beyond the Company's control. As of the date of this release, no binding agreements have been entered into with respect to the sale of the Porcupine Operation or the Coffee development project. See the September 10, 2024 press release for further details re the agreement to divest Telfer and Havieron, the October 8, 2024 press release for further details re the agreement to divest Akyem, the November 18, 2024 press release for further details re the agreement to divest Musslewhite, and the November 25, 2024 press release for further details re the agreement to divest Éléonore. Each are available on Newmont’s website. Closing of such transactions remain subject to certain conditions as indicated in such releases and notes thereto. No assurances can be provided with respect to satisfaction of closing conditions, the timing of closing of the transaction or receipt of contingent consideration in the future. As noted in the footnotes to this press release, the closing of the CC&V sale remains subject to no material adverse change and no transaction-related litigation, the completion of the pre-closing reorganization, and regulatory approvals, including the Hart-Scott-Rodino Act review in the United States.

For a discussion of risks and other factors that might impact future looking statements and future results, see the Company’s Annual Report on Form 10-K for the year ended December 31, 2023 filed with the U.S. Securities and Exchange Commission (the “SEC”) on February 29, 2024, under the heading “Risk Factors", and other factors identified in the Company's reports filed with the SEC, available on the SEC website or at www.newmont.com. The Company does not undertake any obligation to release publicly revisions to any “forward-looking statement,” including, without limitation, outlook, to reflect events or circumstances after the date of this news release, or to reflect the occurrence of unanticipated events, except as may be required under applicable securities laws. Investors should not assume that any lack of update to a previously issued “forward-looking statement” constitutes a reaffirmation of that statement.

1		The estimated aggregate gross proceed amount is inclusive of both closing consideration and possible contingent consideration in connection with the sales of CC&V, Éléonore, Musselwhite, Telfer and Havieron, and Akyem. Actual results gross proceeds may differ. See cautionary statement at end of this release regarding forward-looking statements, including expectations regarding divestments and proceeds.
2		Closing conditions include: (i) no material adverse change and/or transaction-related litigation and (ii) regulatory approvals. See cautionary statement at the end of this release regarding forward-looking statements.
3		Based on receipt of Amendment 14 approval from applicable Colorado regulatory bodies, at state and county levels. See cautionary statement at the end of this release regarding forward-looking statements, including expectations of regulatory resolutions.
4		Contingent payment upon resolution of Carlton Tunnel related permit requirements, through Discharger-Specific Variance (DSV) application or otherwise. See cautionary statement at the end of this release regarding forward-looking statements, including expectations of regulatory resolutions.
5		See cautionary statement at end of this release regarding forward-looking statements, including expectations regarding divestments and proceeds.

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20241205865134/en/

Investor Contact – Global

Neil Backhouse

investor.relations@newmont.com

Investor Contact – Asia Pacific

Natalie Worley

apac.investor.relations@newmont.com

Media Contact – Global

Jennifer Pakradooni

globalcommunications@newmont.com

Source: Newmont

FAQ

How much is Newmont (NEM) selling CC&V for?

Newmont is selling the CC&V operation to SSR Mining for up to $275 million in cash consideration, including $100 million at closing and two deferred payments of $87.5 million each.

What is the total value of Newmont's (NEM) 2024 divestiture program?

Newmont's 2024 divestiture program is expected to generate up to $3.9 billion in gross proceeds, including $3.4 billion from non-core divestitures and $527 million from investment sales.

When will Newmont (NEM) close the CC&V sale?

The CC&V transaction is expected to close in the first quarter of 2025, subject to certain conditions being satisfied.