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Newmont nets $800 million selling KCGM interest to Northern Star

Michael McCrae

Kitco News

Like Barrick before it, Newmont exited Kalgoorlie Consolidated Gold Mines (KCGM) and sold its 50% stake to Australia’s Northern Star Resources Limited (ASX: NST).

In August Barrick dropped its 50% stake in Kalgoorlie netting $750 million for its half of the mine.

Newmont has been shedding assets. The company said it is "streamlined" with 12 top-tier assets. The company has been taking its cash and buying back its shares.

"Combined with the previously announced agreements to sell Red Lake in Canada for $375 million and Newmont’s stake in Continental Gold for $260 million, the company has meaningfully exceeded market expectations, with more than $1.4 billion in fair value cash transactions announced over the past month," said the company in a news release. "Building on Newmont’s recently announced $1 billion share repurchase program, Northern Star’s all-cash offer supports Newmont’s disciplined approach to capital allocation, which includes strategically reinvesting in the business, strengthening the Company’s investment-grade balance sheet and returning capital to shareholders. The sale of KCGM also further streamlines Newmont’s portfolio, with 12 top-tier assets located on four continents in the world’s most favorable gold mining jurisdictions."

By Michael McCrae

For Kitco News

Contact mmccrae@kitco.com
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