The Newcrest Mining Limited (ASX: NCM) share price will be on watch this morning following news it has finalised the sale of Newcrest Singapore Holdings to Indotan Halmahera Bangkit.
Newcrest is one of the world's largest gold mining companies, with its portfolio located in Australia, the Pacific region, Asia and Africa. Newcrest has interests in six production provinces in four countries and a portfolio of brown and greenfield exploration projects.
Details of the Gosowong sale
The sale will see 100% of Newcrest Singapore sold to Indotan for $90 million. The miner noted that $60 million of this sale has already been received from Indotan, with the remaining $30 million to be paid within 18 months.
Newcrest Singapore owns 75% of PT Nusa Halmahera Minerals, which in turn operates the Gosowong mine located in Indonesia. Newcrest Singapore also owns 100% of PT Puncakbaru Jayatama which employs exploration personnel in Indonesia to Indotan.
Gosowong has been a part of Newcrest's operating portfolio since it discovered it in 1993, with first production commencing in 1999.
The sale was first announced to the ASX after market close on 31 January 2020.
In today's release, Newcrest stated that economic ownership has transferred with an effective date of 31 December 2019. The company added that the sale of Newcrest Singapore followed a strategic review of the asset by Newcrest.
Subject to completion, Newcrest expects to recognise a $44 million loss on divestment of its 75% interest after taking into account the sales proceeds less written down value of the assets sold and transaction costs.
At the time of the initial announcement in late January, Newcrest Managing Director and CEO Sandeep Biswas said:
"Following an extensive review and sale process we are pleased to be able to announce the sale of Gosowong to Indotan. This outcome delivers value for Newcrest shareholders and provides a clear future path for Gosowong for the benefit of its employees and the community."
