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Newmont Announces Divestment of Akyem in Ghana for up to $1B
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Newmont Corporation (NEM - Free Report) recently announced that it has reached a definitive agreement to sell its Akyem operation in Ghana to Zijin Mining Group Co., Ltd. for up to $1 billion in cash. The sale is part of Newmont's continuous commitment to divest non-core businesses as it shifts its strategic focus to Tier 1 assets.
The agreement states that Newmont will get $900 million in cash upon closing. Pending the fulfillment of certain conditions, a further $100 million is likely to be received.
The transaction's proceeds will support NEM’s capital allocation priorities, which include improving the balance sheet and returning capital to shareholders.
The sale of Akyem marks further progress on the non-core asset divestiture program announced in February, supporting NEM’s focus on Tier 1 assets in its portfolio that will generate long-term growth and capital return to shareholders.
The company believes the proposed deal maximizes total value for Newmont shareholders and is the best strategic fit for Akyem. Akyem will continue to thrive under the new ownership, with long-term advantages for local stakeholders and the surrounding community. The successful conclusion of this deal would increase the company's trust in Ghana as a favorable mining jurisdiction, and Newmont will continue to support the region's growth and development, including the Ahafo North project.
The transaction is expected to be completed in the fourth quarter of 2024, subject to customary conditions precedent, including regulatory approvals. The deal is not likely to have a significant impact on Newmont's 2024 outlook, and the company has not changed its non-core guidance for the year. Newmont remains committed to Ghana, investing $950 million to $1,050 million in development capital for the Ahafo North gold mining project in Ghana's Ahafo Region.
Shares of Newmont have gained 40.2% over the past year compared with a 44.4% rise of its industry.
Image Source: Zacks Investment Research
NEM's Zacks Rank & Other Key Picks
NEM currently carries a Zacks Rank #2 (Buy).
Other top-ranked stocks in the basic materials space include Carpenter Technology Corporation (CRS - Free Report) , IAMGOLD Corporation (IAG - Free Report) and Centrus Energy Corp. (LEU - Free Report) .
Carpenter Technology currently carries a Zacks Rank #1 (Strong Buy). CRS beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 15.9%. The company's shares have soared 135.6% in the past year. You can see the complete list of today's Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for IAG’s current-year earnings is pegged at 49 cents, indicating a year-over-year rise of 444.4%. IAG, a Zacks Rank #1 stock, beat the consensus estimate in each of the last four quarters, with the average earnings surprise being 200%. The company's shares have rallied roughly 132.3% in the past year.
The Zacks Consensus Estimate for Centrus’ current-year earnings is pegged at $3.06 per share. LEU, a Zacks Rank #1 stock, beat the consensus estimate in three of the last four quarters while missed once, with the average earnings surprise being 107.1%. LEU has rallied around 26.8% in the past year.
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Newmont Announces Divestment of Akyem in Ghana for up to $1B
Newmont Corporation (NEM - Free Report) recently announced that it has reached a definitive agreement to sell its Akyem operation in Ghana to Zijin Mining Group Co., Ltd. for up to $1 billion in cash. The sale is part of Newmont's continuous commitment to divest non-core businesses as it shifts its strategic focus to Tier 1 assets.
The agreement states that Newmont will get $900 million in cash upon closing. Pending the fulfillment of certain conditions, a further $100 million is likely to be received.
The transaction's proceeds will support NEM’s capital allocation priorities, which include improving the balance sheet and returning capital to shareholders.
The sale of Akyem marks further progress on the non-core asset divestiture program announced in February, supporting NEM’s focus on Tier 1 assets in its portfolio that will generate long-term growth and capital return to shareholders.
The company believes the proposed deal maximizes total value for Newmont shareholders and is the best strategic fit for Akyem. Akyem will continue to thrive under the new ownership, with long-term advantages for local stakeholders and the surrounding community. The successful conclusion of this deal would increase the company's trust in Ghana as a favorable mining jurisdiction, and Newmont will continue to support the region's growth and development, including the Ahafo North project.
The transaction is expected to be completed in the fourth quarter of 2024, subject to customary conditions precedent, including regulatory approvals. The deal is not likely to have a significant impact on Newmont's 2024 outlook, and the company has not changed its non-core guidance for the year. Newmont remains committed to Ghana, investing $950 million to $1,050 million in development capital for the Ahafo North gold mining project in Ghana's Ahafo Region.
Shares of Newmont have gained 40.2% over the past year compared with a 44.4% rise of its industry.
Image Source: Zacks Investment Research
NEM's Zacks Rank & Other Key Picks
NEM currently carries a Zacks Rank #2 (Buy).
Other top-ranked stocks in the basic materials space include Carpenter Technology Corporation (CRS - Free Report) , IAMGOLD Corporation (IAG - Free Report) and Centrus Energy Corp. (LEU - Free Report) .
Carpenter Technology currently carries a Zacks Rank #1 (Strong Buy). CRS beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 15.9%. The company's shares have soared 135.6% in the past year. You can see the complete list of today's Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for IAG’s current-year earnings is pegged at 49 cents, indicating a year-over-year rise of 444.4%. IAG, a Zacks Rank #1 stock, beat the consensus estimate in each of the last four quarters, with the average earnings surprise being 200%. The company's shares have rallied roughly 132.3% in the past year.
The Zacks Consensus Estimate for Centrus’ current-year earnings is pegged at $3.06 per share. LEU, a Zacks Rank #1 stock, beat the consensus estimate in three of the last four quarters while missed once, with the average earnings surprise being 107.1%. LEU has rallied around 26.8% in the past year.