This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Newmont Signs Agreement To Sell Jundee Underground Gold Mine In Australia

Newmont Mining Corporation (NYSE: NEM) (“Newmont” or “the Company”) announced it has entered into a binding agreement with Northern Star Resources Limited (“Northern Star”) to sell the Jundee underground gold mine in Australia for total proceeds of approximately US$91 million, comprised of cash at closing of approximately US$77 million plus a further payment of approximately US$14 million for working capital. Northern Star is acquiring all of Jundee’s assets and liabilities including all environmental and employee obligations.

“We are pleased to announce our agreement with Northern Star. It demonstrates our continuing efforts to optimize our portfolio and increase shareholder value by focusing on lower cost, longer life operations,” said Randy Engel, Newmont’s Executive Vice President for Strategic Development. “The agreement with Northern Star builds on Newmont’s other, non-core asset sales, including its stake in Canadian Oil Sands, the Midas underground mine in Nevada and the Company’s equity interest in Paladin Energy Limited. Combined with the pending Jundee transaction, cash proceeds received from these sales total approximately US$800 million.”

The sale is expected to close in early July. Closure is contingent upon Northern Star securing financing and subject to a third party right of refusal.

The Jundee gold mine is located 520 kilometers north of Kalgoorlie in Western Australia. Production began in 1995 from a complex of open pit mines that have now ceased operation. Underground mining began in 1997 and continues today. All existing fixed plant and onsite equipment owned by Newmont will be transferred to Northern Star and the majority of Jundee’s non-contract staff will be offered continuing employment. Jundee produced 279,000 ounces of gold in 2013.

About Newmont

Founded in 1921 and publicly traded since 1925, Newmont is a leading producer of gold and copper. Headquartered in Colorado, the Company has approximately 30,000 employees and contractors, with the majority working at managed operations in the United States, Australia, New Zealand, Peru, Indonesia and Ghana. Newmont is the only gold company listed in the S&P 500 index and in 2007 became the first gold company selected to be part of the Dow Jones Sustainability World Index. Newmont is an industry leader in value creation, supported by its leading technical, environmental, and health and safety performance.

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG

Markets

DOW 18,037.97 -42.17 -0.23%
S&P 500 2,108.92 -8.77 -0.41%
NASDAQ 5,060.2460 -31.8390 -0.63%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs