Newmont’s Incoming CEO Says No ‘Fire Sale’ Coming for Assets – by Vinicy Chan and Millie Munshi (Bloomberg/ – September 17, 2019)

(Bloomberg) — Newmont Goldcorp Corp. is ready to sit tight on asset sales, even if that means not reaching a previously announced goal of as much as $1.5 billion in divestments.

That’s according to Tom Palmer, the company’s incoming chief executive officer. The world’s largest gold producer will be focusing on optimizing its current assets and is happy overall with its portfolio, other than a previously announced sale of Red Lake in Canada, he said.

“We’re in no rush to sell anything,” Palmer said in an interview Tuesday at the Denver Gold Forum. “There will be no fire sale in Newmont Goldcorp.”

That’s a change of tone. Outgoing CEO Gary Goldberg said earlier this month Newmont was still planning to divest up to $1.5 billion in assets following its $10 billion acquisition of rival Goldcorp in April, taking advantage of higher gold prices.

On Tuesday, Palmer said the company was forging ahead with its planned sale of Red Lake, a former Goldcorp asset, and has fielded interest from about a dozen parties. He also said any additional sales would only come after careful study, and Newmont was ready to do more work to understand what value can be “extracted” from the assets.

For the rest of this article: