Newcrest Mining Ltd. (NCM.AU) scaled back its global footprint with a US$81 million sale of its Bonikro gold mine in Ivory Coast following a strategic review.
Newcrest has agreed to sell the mine to a consortium of F&M Gold Resources Ltd. and Africa Finance Corp. for US$72 million in cash payable on completion of the deal and a net smelter royalty worth US$9 million.
Continue Reading Below
The royalty applies to the first 560,000 troy ounces of gold output from the so-called "next pushback of the Bonikro pit" after completion, at a rate of 2.5% for gold prices above US$1,251 per ounce. Newcrest said the royalty lifts by 0.5% for every US$50 increase in the gold price up to a ceiling of 4.5% at US$1,450 per ounce.
Newcrest said it would update its guidance for the 2018 fiscal year once the deal completes, likely to be in the March quarter. It expects to recognise a small net profit on the sale.
-Write to David Winning at firstname.lastname@example.org
(END) Dow Jones Newswires
December 12, 2017 16:55 ET (21:55 GMT)