World’s Biggest Gold Miner Focuses on Refocusing Portfolio and Maximizing Profit
- Newmont Corp.’s stock falls 6% to nearly five-year low
- Company plans to sell assets and reduce dividend
- Focus on maximizing profit and refocusing portfolio
- Acquisition of Newcrest Mining creates world’s biggest gold miner
- Copper is an attractive commodity for EVs and renewable-energy infrastructure
- Divestment of non-core assets and projects
- New capital allocation strategy and return of capital framework
- Targeting debt reduction and maintaining investment-grade balance sheet
- Limiting capital spend and implementing $1 billion buyback program
- Lowered quarterly dividend to 25 cents
Newmont Corp.’s stock fell 6% Thursday to put it on track for a nearly five-year low, after the gold miner said it’s planning to sell assets and reduce its dividend as it refocuses its portfolio. The Denver-based company closed its acquisition of Australia’s Newcrest Mining in November and is now taking a hard look at its assets and projects with a view to maximizing profit. The $15 billion deal, the biggest transaction in gold-mining history, has created the world’s biggest gold miner with “robust copper optionality,” as the company described it in a statement on Thursday. Copper is an attractive commodity right now given its use in EVs and renewable-energy infrastructure. Newcrest has added five active mines and two advanced projects to Newmont’s global footprint, which includes mines in Ghana, Canada and Australia. The company is planning to focus on its Tier 1 portfolio, which includes 11 managed Tier 1 and emerging Tier 1 assets and three non-managed operations. It’s seeking to divest six non-core assets, including ÉlĂ©onore, Musselwhite, Porcupine, CC&V, Akyem and Telfer operations, as well as two non-core projects, Havieron and Coffee. The company is expecting to produce 6.7 million ounces of gold by 2028. As part of a new capital allocation strategy and return of capital framework, Newmont is planning to reduce debt by $1 billion to about $8 billion through free cash flow and divestment proceeds. It’s committed to maintaining an investment-grade balance sheet and is targeting about $7 billion in available liquidity, including $3 billion of cash and an increased $4 billion five-year corporate revolving credit facility. It is planning to limit capital spend to about $1.3 billion a year and will reward shareholders with a $1 billion buyback program over the next 24 months. But it lowered its quarterly dividend to 25 cents from 40 cents previously.
Factuality Level: 7
Factuality Justification: The article provides detailed information about Newmont Corp.’s stock performance, strategic decisions, financial results, and leadership changes. The information is presented in a factual manner without significant bias or sensationalism. However, the article could benefit from more context on the industry trends and market conditions affecting the company’s performance.
Noise Level: 3
Noise Justification: The article provides detailed information about Newmont Corp.’s stock performance, strategic decisions, financial results, and leadership changes. It includes relevant details such as the company’s acquisition of Newcrest Mining, plans to sell assets, reduce dividend, and focus on Tier 1 portfolio. The article also mentions the company’s production targets, debt reduction plans, and shareholder rewards. Overall, the article stays on topic, supports its claims with data, and provides insights into the company’s future direction.
Financial Relevance: Yes
Financial Markets Impacted: The article pertains to Newmont Corp., a gold mining company. The company’s stock fell 6% after announcing plans to sell assets and reduce its dividend. This news may impact the financial markets related to gold mining and mining companies.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Rating Justification: The article does not mention any extreme events.
Public Companies: Newmont Corp. (NEM), Newcrest Mining (Not available)
Key People: Tom Palmer (Chief Executive), Natascha Viljoen (COO), Rob Atkinson (Previous COO)
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