Newmont has tallied up more than $US4.3 billion ($6.8 billion) in proceeds from its non-core divesture program, the final asset of which it announced as sold on Monday.
Discovery Silver is set to become the new owner of Newmont’s Porcupine gold operation in Canada, with total consideration for the mine is expected to reach $US425 million ($678.6 million).
“Today’s announcement represents a significant milestone for Newmont as we have agreed to sell the final non-core operation from our divestiture program,” Newmont president and chief executive officer Tom Palmer said.
“The sale is part of Newmont’s ongoing program to divest non-core assets as we make a strategic shift to focus on our Tier 1 assets.”
In February 2024, Newmont announced the intent to divest its non-core assets, including six operations and two projects from its Australian, Ghanaian, and North American business units.
Including today’s announcement, Newmont has divested, or has definitive agreements in place to divest, all six operations and one project classified as held for sale in its financial statements.
Porcupine was the best performing non-core mine in Newmont’s portfolio last year, producing 219,000 ounces of gold in the nine months to September 2024.
“We have full confidence that Discovery’s leadership team will continue to operate Porcupine responsibly, leveraging their extensive experience and history in the area,” Palmer said.
“Including the Porcupine divestiture, we expect to generate up to $US4.3 billion in total proceeds from the announced sales of our high-quality non-core assets and investments, enabling us to further reduce debt and return capital to shareholders.”
The deal is expected to close before the end of the financial year.
Total gross proceeds from transactions announced in 2024 to date include $3.8 billion ($6 billion) from non-core divestitures and $527 million ($841.6 million) from the sale of other investments, detailed as follows:
- Up to $US475 million ($758.6 million) from the sale of the Telfer operation and Newmont’s 70 per cent interest in the Havieron project
- Up to $US1 billion ($1.59 billion) from the sale of the Akyem operation
- Up to $US850 million ($1.35 billion) from the sale of the Musselwhite operation
- $US795 million ($1.2 billion) from the sale of the Éléonore operation
- Up to $US275 million ($439 million) from the sale of the CC&V operation
- Up to $US425 million ($678.7 million) from the sale of the Porcupine operation
- $US527 million ($841.3 million) from the completed sale of other investments, including the sale of the Lundin Gold stream credit facility and offtake agreement, and the monetization of Newmont’s Batu Hijau contingent payments