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Resources giant confirms $1B mine selloff

Telfer mine
Telfer mine

A global mining company revealed it could profit substantially from exiting multiple operations.

Newmont Corporation recently confirmed it will sell off its Telfer, Musselwhite, Éléonore, Akyem, Porcupine, CC&V, Havieron and Coffee mine sites.

“[We expect] near-term debt reduction of US$1 billion (A$1.5B) to approximately US$8B (A$12.3B) through free cash flow and divestment proceeds from sale of non-core assets,” the proponent said in a public statement.

The remarks fuelled mainstream media speculation about potential new suitors.

“The expectation is that the most likely buyers are Regis Resources or Gold Road Resources,” News Limited reported.

“Macquarie Capital is expected to emerge as the adviser to the sale.”

Newmont president and chief executive officer Tom Palmer would not confirm whether takeover talks were underway at the time of publication. He only hoped proceeds would win investor approval.

“This portfolio provides our shareholders with exposure to the highest concentration of tier one assets in the sector, each with the scale and mine life to generate strong free cash flows,” he said.

“I am confident in the quality of our assets and the capability of our team to deliver on our commitments, return capital to shareholders and justify our position.”

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