Newmont nets $100M payment related Akyem mine sale

[Ben Graham]

Newmont (NYSE, ASX: NEM, TSX: NGT) said on Friday it has received the final payment of $100 million related to its divestment of the Akyem gold mine in Ghana.

In October 2024, Newmont agreed to sell its Akyem operation to China’s Zijin Mining Group for $1 billion in cash, of which $900 million had been paid when the deal closed in April.

The remaining $100 million is payable once certain conditions are met, specifically the successful renewal of one of the Akyem mining by Zijin.

In a press release Friday, the Chinese gold miner confirmed that the Parliament of Ghana has ratified the mining lease renewal, which had already been approved by the Ministry of Lands and Natural Resources before the deal was announced.

With the condition now satisfied, Zijin has made the obligatory $100 million payment to Newmont.

After adjustment for tax and other items, Newmont said it has received cash proceeds of $770 million from this deal.

The Akyem mine is one of six assets that the Colorado-based miner has sold under its divestment program announced in February 2024 to reduce debt and raise cash. Other notable sales include the Éléonore mine in Quebec, the Musselwhite and Porcupine mines in Ontario, the Coffee project in the Yukon Territory, and a 70% stake in the Havieron joint venture in Western Australia.

Together, Newmont expects to generate approximately $4.3 billion from the divestments, comprising $3.8 billion in mine assets and $527 million from the sale of equity received from the sales. The after-tax proceeds for 2025 alone are estimated at $3.1 billion.

Shares of Newmont inched higher at $62.32 apiece in New York, solidifying its position as the world’s largest gold miner with a market capitalization of $68.5 billion.