The Newcrest Mining Ltd (ASX: NCM) share price is edging lower on Tuesday following an asset sale from the company.
At the time of writing, the gold miner’s shares are down 0.60% at $23.08.
Newcrest offloads royalty portfolio
According to today’s release, Newcrest advised it has entered into definitive agreements with Altus Strategies and AlphaStream to sell a portfolio of 24 royalties.
Founded in 2007, Altus is a United Kingdom-based mining royalty company. The business is focused on establishing a diversified portfolio of income generating royalties.
On the other hand, AlphaStream also based in London is a multi-commodity royalty and streaming company.
Under the agreement, Newcrest will receive a total cash consideration of around US$37.5 million from both Altus and AlphaStream.
The royalties are in respect to three gold mines and 21 near-term development and exploration stage projects. In total, 23 of the royalty projects are situated in Australia and one royalty project is in Cote d’Ivoire, West Africa.
Completion of the transaction is expected to occur in two phases. This is due to the rights of first offer/refusal on select Australia exploration royalties.
In addition, the deal is subject to Altus securing financing for the acquisition.
Newcrest managing director and CEO, Sandeep Biswas commented:
We remain focused on capital discipline across our whole business and see the sale of these royalties as an opportunity to unlock value for Newcrest shareholders in response to continued competition for royalty investments.
Newcrest share price summary
Since August 2020, the Newcrest share price has been on a gradual decline, posting a loss of almost 40%. Year-to-date, however, its shares are down 10% for investors.
As Australia’s largest gold miner, Newcrest commands a market capitalisation of roughly $18.88 billion, with approximately 817.96 million shares outstanding.
The post Newcrest (ASX:NCM) share price slides despite US$37 million payday appeared first on The Motley Fool Australia.
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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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