Newmont Telfer & Havieron consideration beats expectation, says Jefferies

After Newmont announced the sale of Telfer & Havierion to Greatland Gold for up to $475M, Jefferies said the consideration was better than the firm’s $271M valuation, but includes some equity, deferred cash, and a joint venture loan repayment. Given the buyer had right of first refusal and given previously disclosed tailings challenges at Telfer, it is difficult to use this transaction as a read-through to other asset sales, says the firm, but it adds that Newmont starting to action its non-core asset sales is “a modest incremental positive.” The firm has a Buy rating and $54 price target on Newmont shares.