Newmont Goldcorp Corp. said Jan. 2 that it completed the sale of its 50% interest in Kalgoorlie Consolidated Gold Mines Pty Ltd. to Northern Star Resources Ltd., a transaction valued at US$800 million.
Kalgoorlie Consolidated Gold Mines owns the Kalgoorlie Super Pit gold mine in Western Australia, 50% of which was acquired by Saracen Mineral Holdings Ltd. from Barrick Gold Corp. for US$750 million.
Following the divestiture, Newmont lowered its attributable gold production guidance to 6.4 million ounces for 2020 and between 6.2 million ounces and 6.7 million ounces longer-term through 2024, while attributable sustaining capital guidance was also lowered to US$950 million for 2020 and between US$900 million and US$1.1 billion longer-term through 2024. The company's guidance for costs applicable to sales, all-in sustaining costs, and general and administrative costs remain unchanged.
Newmont has met its divestiture target of between US$1.0 billion to US$1.5 billion, with more than US$1.4 billion in cash expected to be received in the first quarter.
Meanwhile, Newmont said that Australia remains a core operating region, and the sale of the Kalgoorlie assets will allow the company to focus its investments on the Tanami gold mine in the Northern Territory and on the Boddington gold mine in Western Australia.
In Australia, the company expects to produce 1.2 million ounces of gold at AISC of US$900 per ounce in 2020, improving to 1.3 million ounces to 1.5 million ounces and US$650 to US$750 per ounce in 2022.