S&P/ASX 200 Index (ASX: XJO) gold stock Newmont Corp (ASX: NEM) is on the rise today.
Newmont shares closed yesterday trading for $76.18. In morning trade on Wednesday, shares are swapping hands for $77.33 apiece, up 1.5%.
For some context, the ASX 200 is up 0.1% at this same time.
And for a better comparison of apples to apples, the S&P/ASX All Ordinaries Gold Index (ASX: XGD) – which also contains some smaller gold miners outside of the ASX 200 – is up 1.6%.
This strong performance comes following Newmont's announcement of a major Australian asset sale.
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ASX 200 gold stock outshines on US$475 divestiture
The Newmont share price is shining bright after the ASX 200 gold stock reported that it has agreed to sell the Telfer operation, Newmont's 70% interest in the Havieron gold-copper project, and other related interests in the Paterson region to Greatland Gold plc (AIM: GGP).
The sales of the projects, all located in Australia, are part of Newmont's ongoing program to divest its non-core assets.
Newmont said it expects to receive gross proceeds of up to US$475 million (AU$712 million) for the Aussie gold and copper assets.
That's comprised of a cash consideration of US$207.5 million, an equity consideration of US$167.5 million in the form of Greatland shares, and a deferred contingent cash consideration of up to US$100 million.
Commenting on the Australia sales agreement helping boost the ASX 200 gold stock today, Newmont CEO Tom Palmer said, "The transaction announced today represents the first asset sale in the divestiture program announced in February."
Palmer added:
I am pleased that Telfer and Havieron are being sold to Greatland, a company with a highly experienced management team and board of directors. I have full confidence that the Greatland team will be outstanding stewards of these assets.
Including the Telfer divestiture, we continue to expect to reach at least US$2 billion in total proceeds from the sale of our high-quality, non-core assets, enabling us to focus attention on our suite of Tier 1 assets, further reduce debt, and return capital to shareholders.
Newmont said it expects the transaction will be completed in the fourth quarter of 2024.
Newmont share price snapshot
Newmont shares first began trading on the ASX on 27 October 2023. That came after the American-based gold miner acquired Newcrest Mining in April last year.
Amid a rising gold price and strong production, Newmont shares have outperformed in 2024. Year to date, shares in the ASX 200 gold stock are up 27%.
