News Guide Africa

Tag: Tom Palmer

  • Newmont declares $0.25 per-share Q3 dividend

    Newmont

     

    Newmont Corporation has declared a third-quarter dividend of $0.25 per share.

    Concerning its third quarter 2024 results, Newmont President and CEO Tom Palmer said: “In the third quarter, Newmont delivered 2.1 million gold equivalent ounces and generated $760 million in free cash flow from our world-class portfolio.”

     

    He added: “We continue to make meaningful progress on our non-core divestment program with the two transactions announced in the quarter, which are expected to deliver up to $1.5 billion in combined gross proceeds. Our divestiture progress and strong free cash flow generation have positioned us to continue reducing debt and repurchasing shares, creating significant and lasting value for our shareholders.”

     

    Highlights of Q3 2024 results:

     

     

    Announced an agreement to sell the Akyem mine in Ghana for up to $1 billion in cash, as well as an agreement to divest the Telfer mine and 70 per cent interest in the Havieron project in Western Australia for up to $475 million of gross proceeds

     

    Continue to expect to receive at least $2 billion in gross divestiture proceeds from high-quality, non-core asset sales, in addition to the 527 million dollars in cash already received from other investment sales since the beginning of 2024

     

    Since the last earnings release, repurchased 9.4 million shares at an average price of $53.16 for a total cost of $500 million, of which $198 million was repurchased during the third quarter2; $750 million of share repurchases completed since the program announced in February 2024

     

    Newmont’s Board authorised an additional $2 billion share repurchase program to be executed at the Company’s discretion, utilising open market repurchases to occur from time to time throughout the next 24 months

     

     

    Delivered $786 million in total returns to shareholders through share repurchases and dividend payments2; declared a dividend of $0.25 per share of common stock for the third quarter of 20244

     

    Since the last earnings release, reduced nominal debt by $233 million for a cash cost of $210 million, of which $150 million was purchased during the third quarter and $83 million was purchased in October 2024; $483 million of debt retired year-to-date in 2024

     

    Produced 1.7 million attributable gold ounces, primarily driven by the production of 1.4 million gold ounces from Newmont’s Tier 1 Portfolio5, as well as 430 thousand gold equivalent ounces (GEOs)6 from copper, silver, zinc, and lead, including 37 thousand tonnes of copper

     

    Generated $1.6 billion of cash from operating activities, net of working capital changes of $(209) million; reported $760 million in Free Cash Flow

     

     

    Reported Net Income of $924 million, Adjusted Net Income (ANI) of $0.81 per diluted share and Adjusted EBITDA of $2.0 billion

     

    Achieved $500 million annual synergy run-rate following the Newcrest acquisition, reaching Newmont’s commitment more than a year ahead of schedule

     

    Positioned to meet Newmont’s 2024 production guidance; expect to deliver attributable production of 1.8 million gold ounces at an All-In Sustaining Cost (AISC) of $1,475 per ounce in the fourth quarter

     

     

    Partnered with MKS PAMP to launch a traceable mine-to-market gold bar; for sale through the largest U.S. wholesaler, providing consumers direct access to Newmont’s gold and demonstrating a commitment to transparent sourcing

     

  • Newmont seals $19.2 billion Newcrest takeover deal

    Newmont Corporation has announced that, following the completion of due diligence, it has entered into a binding Scheme Implementation Deed (SID) under which Newmont will acquire 100 percent of the issued share capital in Newcrest by way of an Australian court-approved Scheme of Arrangement.

    The deal is worth about A$28.8 billion ($19.2 billion). It will create the world’s biggest gold producer.

    “The combination of Newmont and Newcrest represents an exceptional value proposition for shareholders and other stakeholders. It creates an industry-leading portfolio with a multi-decade gold and copper production profile in the world’s most favorable mining jurisdictions”, said Tom Palmer, President and CEO of Newmont.

    Palmer noted in a statement: “Following a robust due diligence process, we have identified a number of opportunities to unlock substantial value and will apply our experience and expertise to Newcrest’s complementary and exceptional portfolio of long-life, low-cost gold and copper assets”.

    He said: “Leveraging our experience from the acquisition of Goldcorp four years ago, we are positioned to deliver an estimated $500 million in annual synergies and an estimated $2 billion in incremental cash flow from portfolio optimisation opportunities, both part of our strategy to maximise value for shareholders and other stakeholders”.

    Palmer continued: “This transaction also increases Newmont’s annual copper production – a metal vital for the new energy economy – and adds nearly 50 billion pounds of copper reserves and resources from Newcrest to our robust and balanced portfolio. We intend to quickly realise these opportunities to create superior value for our shareholders, workforce, host communities, and governments”.

    Newcrest’s Chairman, Peter Tomsett, added: “This transaction combines two of the world’s leading gold producers, bringing forward significant value to Newcrest shareholders through the recognition of our outstanding growth pipeline”.

    Tomsett said: “In addition to the ongoing benefits of merging these premier portfolios, the combined group will set a new benchmark in gold production while benefitting from a material and growing exposure to copper and a market-leading position in safety and sustainability”.

    The Newcrest Board, he indicated, “is unanimously recommending the proposal”.

    “We are very proud of the entire Newcrest team for building a world-class metals business, which will form a key part of the combined group”.

    “We believe our shareholders and other stakeholders can look forward to an exciting and prosperous future”.