Gross Divestment Proceeds to Date are Expected to Reach up to $2.9 Billion
DENVER--BUSINESS WIRE--
Newmont Corporation (NYSE: NEM, TSX: NGT, ASX: NEM, PNGX: NEM) ("Newmont" or the "Company") announced today that it has agreed to sell its Musselwhite operation in Ontario, Canada, to Orla Mining Ltd ("Orla") for up to $850 million in total consideration.
Under the terms of the agreement, Newmont will receive cash consideration of $810 million upon closing and up to $40 million1 in contingent payments. The transaction is expected to close in the first quarter of 2025, subject to certain conditions being satisfied.2 Upon closing the announced transactions, Newmont will have surpassed its target of delivering more than $2 billion in gross proceeds from non-core divestitures.
"We are pleased to be selling our Musselwhite operation to Orla and have full confidence that they will continue to operate responsibly, while maintaining strong partnerships with the mine's workforce and local and Indigenous communities," said Tom Palmer, Newmont's President and Chief Executive Officer. "Today's announcement signifies Newmont's continued progress toward building our go-forward portfolio and delivering on the transaction commitments we made at the beginning of the year. The announced divestitures are expected deliver up to $2.9 billion in gross proceeds to support Newmont's capital allocation priorities, which include strengthening our balance sheet and returning capital to shareholders."
Divestiture Program Progress
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. With definitive agreements in place to divest the assets in Australia, Ghana, and now Musselwhite, the Company is focused on completing the sales processes for its other North American non-core assets, which are expected to conclude in the first quarter of 2025.3
Total gross proceeds from transactions announced in 2024 to date are expected to be up to $2.9 billion. This includes $2.3 billion from non-core divestitures and $527 million from the sale of other investments, detailed as follows:
- Up to $475 million from the sale of the Telfer operation and Newmont's 70% interest in the Havieron project;
- Up to $1.0 billion from the sale of the Akyem operation;
- Up to $850 million from the sale of the Musselwhite operation; and
- $527 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.
Capital Allocation
Newmont continues to leverage free cash flow from its operations and proceeds from divestitures to enhance long-term value for shareholders by repurchasing shares on a ratable basis. In line with this strategy, the Company has an aggregate $3 billion share repurchase program authorized for execution through October 2026.4
Since October 24, 2024, Newmont has repurchased 7.2 million shares, totaling $336 million. Since the program's inception5, Newmont has repurchased 22.4 million shares, amounting to $1.1 billion. This ongoing progress reflects Newmont's commitment to delivering meaningful returns and lasting value to shareholders.
Additionally, Newmont has made significant progress toward reaching its targeted debt balance of $8 billion, retiring approximately $500 million of debt in 2024 and demonstrating the Company's dedication to a disciplined and balanced approach to capital allocation.
Advisers and Counsel
In connection with the Musselwhite transaction, BMO Capital Markets acted as financial adviser and Goodmans LLP acted as legal adviser.
About Newmont
Newmont is the world's leading gold company and a producer of copper, zinc, lead, and silver. The Company's world-class portfolio of assets, prospects and talent is anchored in favorable mining jurisdictions in Africa, Australia, Latin America & Caribbean, North America, and Papua New Guinea. Newmont is the only gold producer listed in the S&P 500 Index and is widely recognized for its principled environmental, social, and governance practices. Newmont is an industry leader in value creation, supported by robust safety standards, superior execution, and technical expertise. Founded in 1921, the Company has been publicly traded since 1925.
