Summary
Newmont Mining Corporation announced the sale of its Golden Grove zinc-copper operation in Western Australia to Oxiana Limited for approximately $205 million. The transaction comprises $147 million in cash and 81.5 million shares of Oxiana Limited stock, valued at approximately $58 million. This divestiture aligns with Newmont's strategic objectives, allowing it to focus on core assets. The sale is contingent upon Oxiana securing financing and satisfying other customary closing conditions, with an expected completion in late July 2005. As a consequence of this sale, Newmont will record a non-cash impairment charge to earnings in the second quarter of 2005, estimated to be between $25 million and $35 million. This charge reflects the adjustment of the Golden Grove assets' carrying value to their net selling price. The company also reaffirmed its 2005 guidance for operating performance and results, signaling confidence in its ongoing business operations.
Key Highlights
- 1Sale of Golden Grove zinc-copper operation in Western Australia for approximately $205 million.
- 2Transaction includes $147 million in cash and 81.5 million Oxiana Limited shares (valued at $58 million).
- 3Sale is subject to buyer obtaining financing and other customary closing conditions.
- 4Expected closing date for the sale is late July 2005.
- 5Anticipated non-cash impairment charge of $25 million to $35 million in Q2 2005 related to the sale.
- 6Newmont reaffirms 2005 guidance for operating performance and results.