Gold Miner Newmont Looks To Sell Assets, Reduce $8B Debt Load
Portfolio Pulse from Stjepan Kalinic
Newmont (NYSE:NEM) plans to sell assets to reduce its $8 billion debt, following the acquisition of Newcrest. The company aims to focus on tier-one assets in favorable mining jurisdictions and expects to lower debt by $1 billion short term and achieve $100 million in free cash flow by integrating Newmont and Newcrest. Despite a 6.9% drop in gold production in 2023 and various charges, Newmont reported higher gold reserves and a commitment to dividends, with a goal to improve gold production to 6.7 million ounces by 2028.
February 23, 2024 | 4:13 pm
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Newmont aims to sell assets to reduce its $8 billion debt and focus on tier-one assets, expecting to lower debt by $1 billion and achieve $100 million in free cash flow. Despite a production drop, it remains committed to dividends and plans to increase gold production to 6.7 million ounces by 2028.
The strategic move to sell assets and reduce debt is likely to be viewed positively by investors, as it demonstrates Newmont's commitment to financial health and shareholder value. The focus on tier-one assets and the plan to increase gold production despite current challenges could signal potential for growth and stability, positively impacting the stock price in the short term.
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