Newmont Corporation has cashed in more than $700 million through the sale of shares.
The company said it had executed agreements to offload shares in Greatland Resources and Discovery Silver Corp for $US470 million ($719.8 million), net of taxes and commissions. This brings Newmont’s total after-tax proceeds from its divestiture program to $US3 billion ($4.6 billion).
Newmont received Greatland shares after divesting the Telfer operation and a 70 per cent interest in the Havieron gold project. In cooperation with Greatland, Newmont has sold half of the shares it received, at a cash price that reflects a 230 per cent return. The company continues to hold a 9.9 per cent equity stake in Greatland.
Newmont has also sold its full shareholding of Discovery Silver Corp. These shares were received as part of the sale of the Porcupine mine to Discovery earlier this year. The average sales price reflects a circa 200 per cent return for Newmont.
In February 2024, Newmont announced its plans to divest mines and projects it didn’t consider to be ‘Tier 1’ assets.
“We have a number of Tier-2 assets that are very good assets, run by very good people, but that don’t make our Tier-1 category,” Newmont president and chief executive officer Tom Palmer said at the time.
Newmont then proceeded to sell its Telfer, Porcupine, Akyem, Musselwhite and Cripple Creek & Victor operations, to name a few.
The company said it was on track to meet expectations laid out in its 2025 guidance. The $US3 billion in proceeds from the divestments will support its capital allocation priorities, which include strengthening the company’s balance sheet and returning capital to shareholders.
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