Newmont has offloaded the final asset in its non-core divestiture program, with the Porcupine operation in Ontario, Canada fetching up to $US425 million ($675 million).
Discovery Silver Corp. is the new owner of Porcupine, which produced 219,000 ounces of gold in the nine months to September 30 2024, making it the best performing mine within Newmont’s non-core portfolio across that period.
The transaction involves an initial $US200 million in cash, $US75 million in Discovery shares, and $US150 million to be paid at a later date.
Newmont’s non-core divestiture program has generated up to $US4.3 billion ($6.8 billion) in proceeds, with other asset sales including the sale of the Telfer operation and Newmont’s 70 per cent interest in the Havieron project for up to $US475 million, up to $US1 billion generated from the sale of the Akyem operation in Ghana, and up to $US850 million generated from the sale of the Musselwhite operation in Canada.
Newmont also sold the Éléonore operation in Canada for $US795 million, and the Cripple Creek & Victor (CC&V) operation in the US for up to $US275 million.
Newmont has also generated $US527 million from other divestments, including the sale of a Lundin Gold credit facility and offtake agreement involving the Fruta del Norte gold mine in Ecuador.
“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.”
Newmont has timed its divestiture program well, with the gold price regularly notching record highs in 2024. The outlook remains strong for the precious metal amid sustained geopolitical uncertainty worldwide.
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