Newmont Mining Corp., the world’s second-largest gold producer, said it will show a pretax gain of about $900 million from the sale of its royalty assets to Franco-Nevada Corp.
The gain will be recorded in the fourth quarter, Denver- based Newmont said today in a statement. The company said on Nov. 30 it anticipated a pretax profit of $950 million from the sale.
Newmont acquired the royalty interests through its takeover of Franco-Nevada Mining Corp. in 2002. Newmont Chief Executive Officer Richard T. O’Brien said in August the company would sell them for $1.3 billion to Franco-Nevada Corp., a new company formed by former Newmont executives, allowing him to focus on mining as costs escalate and production declines.
“The successful conclusion of this process on the timetable we had originally established allows us to move into 2008 with the ability to devote our resources to the development of our core gold business,” O’Brien said in the statement.
Newmont rose 11 cents, or 0.2 percent, to $47.39 at 4:27 p.m. in New York Stock Exchange composite trading, for a market value of $21.7 billion. The shares have climbed 5 percent this year, lagging behind the 14 percent gain in the 16-member Philadelphia Gold & Silver Index.
