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Newmont Completes Sale of Interests in KCGM and Updates 2020 Guidance and Long-term Outlook

Newmont (NYSE: NEM, TSX: NGT) (Newmont or the Company) today announced it successfully completed the sale of its 50 percent stake in Kalgoorlie Consolidated Gold Mines (KCGM) to Northern Star Resources Limited (ASX: NST) (Northern Star) receiving cash proceeds of $800 million.


"Newmont is pleased to complete the sale of KCGM to Northern Star and hand over the asset in good order to a well-established gold producer with a commitment to safety, community development and responsible environmental practices,a?? said Tom Palmer, President and Chief Executive Officer. "Proceeds from the transaction will support Newmonta??s disciplined approach to capital allocation, which includes strategically reinvesting in the business, strengthening the Companya??s investment-grade balance sheet and returning cash to shareholders,a?? Palmer added.


Total proceeds from the transaction include a $25 million payment that gives Northern Star specified exploration tenements, transitional services support and an option to exclusively negotiate for the purchase of Newmonta??s Kalgoorlie power business for a 120 day period. The $25 million payment will be credited against the purchase price for the power business or $22.5 million would be returned to Northern Star if the power business is sold to a third party.


Combined with the previously announced agreements to sell Red Lake in Canada for $375 million and the Companya??s stake in Continental Gold for $260 million, Newmont has met its divestiture target of $1.0 to $1.5 billion, with more than $1.4 billion in cash proceeds expected to be received in the first quarter of 2020. The sale of KCGM further streamlines Newmonta??s portfolio, with 12 top-tier assets located on four continents in the worlda??s most favorable gold mining jurisdictions.


Following the divestiture of KCGM, the Company is updating its 2020 guidance and long-term outlook1.
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