Newmont finalizes $1.7 billion in asset sales

DENVER - Newmont Corporation (NYSE: NEM), a leading gold producer, announced the completion of its divestiture of three non-core operations, which has resulted in after-tax cash proceeds of $1.7 billion to date in 2025. The sold assets include the Musselwhite and Éléonore mines in Canada and the Cripple Creek & Victor mine in Colorado, USA.

Tom Palmer, President and CEO of Newmont, expressed satisfaction with the progress of the strategic portfolio optimization that began in early 2024. The company plans to further strengthen its balance sheet and continue its shareholder capital return policy through share repurchases, building on its impressive 55-year streak of consecutive dividend payments.

The total gross proceeds from the divestitures are anticipated to reach up to $4.3 billion, which includes $3.8 billion from the sale of non-core assets and $527 million from the disposal of other investments. Newmont expects to close the sales of the Akyem operation in Ghana and the Porcupine operation in Canada in the first half of 2025, with these transactions potentially generating up to $1.4 billion in gross proceeds.

The Akyem operation sale could yield up to $1 billion, including $900 million in cash at closing and an additional $100 million contingent on certain conditions. The Porcupine operation sale is expected to bring in up to $425 million, comprising $200 million in cash and $75 million in equity at closing, plus up to $150 million in deferred cash consideration.

Newmont, with a history dating back to 1921, is the only gold producer listed in the S&P 500 Index and is recognized for its environmental, social, and governance practices. The company’s portfolio spans several continents, with operations in Africa, Australia, Latin America & Caribbean, North America, and Papua New Guinea.

This news release contains forward-looking statements regarding the pending sales of the Akyem and Porcupine operations, including expectations about the timing and completion of these transactions. The realization of these sales is subject to certain conditions and approvals. For detailed financial analysis and additional insights about Newmont’s strategic moves, visit InvestingPro, where you’ll find exclusive ProTips and comprehensive financial metrics.

The information provided is based on a press release statement from Newmont Corporation.

In other recent news, Newmont Corporation reported fourth-quarter earnings and revenue that exceeded analyst expectations. The company posted adjusted earnings per share of $1.40, surpassing the consensus estimate of $1.07. Revenue for the quarter came in at $5.65 billion, which was above the $5.15 billion analysts had anticipated. Newmont produced 1.9 million attributable gold ounces in the fourth quarter, marking a 14% increase from the previous quarter. This rise in production was primarily due to higher outputs at Peñasquito, Boddington, Lihir, and its stake in Nevada Gold Mines. For the full year 2024, Newmont reported attributable gold production of 6.85 million ounces and generated $6.3 billion in operating cash flow. The company also declared a fourth-quarter dividend of $0.25 per share. Looking ahead, Newmont expects 2025 attributable gold production of approximately 5.9 million ounces.

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