Newmont has divested another non-core gold asset, with its Éléonore operation in northern Quebec, Canada, attracting $US795 million ($1.2 billion) in cash.
Private UK-based mining company Dhilmar has taken the reigns of Éléonore, an underground mine that had produced 171,000 ounces of gold in the nine months to September 30.
The sale has brought Newmont’s total divestiture proceeds to $US3.6 billion ($5.5 billion), following the $US850 million divestment of the Musselwhite gold mine last week.
Newmont president and chief executive officer Tom Palmer explained the significance of the Éléonore transaction.
“Today’s announcement is another step forward in Newmont’s journey to create a go-forward portfolio of Tier 1 gold and copper assets, each with the scale and mine life to generate strong free cash flows for several decades,” he said.
“When we announced the acquisition of Newcrest in 2023, we committed to generating at least $US2 billion in cash through portfolio optimisation. With this announced sale, we have meaningfully exceeded our target by more than $US1.5 billion to date.
“Proceeds from this transaction will support Newmont’s comprehensive approach to capital allocation, which includes strengthening our investment-grade balance sheet and returning capital to shareholders.”
Other announced transactions in Newmont’s divestiture program include the up to $US1 billion sale of the Akyem operation and the up to $US475 million sale of the Telfer operation and the company’s 70 per cent stake in the Havieron project, both located in Western Australia.
Newmont has also announced $US527 million in other divestments, including the sale of a Lundin Gold credit facility and offtake agreement.
Greatland Gold, set to be the new owner of Telfer and Havieron, recently reported that the remediation of the Telfer tailings facility, a key sticking point in the deal, has been completed by Newmont, with a required 14 days of consecutive processing achieved following this.
With a handful of conditions still needing to be satisfied, Greatland and Newmont hope to complete the deal by early December 2024.
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