Agreements Now in Place to Divest All Non-Core Operations, Announced Divestitures Expected to Generate up to $4.3 Billion in Gross Proceeds
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 Porcupine operation in Ontario, Canada to Discovery Silver Corp. ("Discovery") for up to $425 million in total consideration. Upon closing the sale of the Porcupine operation and the previously announced transactions, Newmont will deliver up to $4.3 billion in total proceeds from non-core asset divestitures and investments.
The transaction is expected to close in the first half of 2025, subject to certain conditions being satisfied.1 Under the terms of the agreement, Newmont expects to receive gross proceeds of up to $425 million, which includes:
- Cash consideration of $200 million, due upon closing
- Equity consideration of $75 million in the form of Discovery shares, to be issued upon closing2
- Deferred cash consideration of $150 million3
"Today's announcement represents a significant milestone for Newmont as we have agreed to sell the final non-core operation from our divestiture program. 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," said Tom Palmer, Newmont's President and Chief Executive Officer. "We have full confidence that Discovery's leadership team will continue to operate Porcupine responsibly, leveraging their extensive experience and history in the area. Including the Porcupine divestiture, we expect to generate up to $4.3 billion in total proceeds from the announced sales of our high-quality non-core assets and investments, enabling us to further reduce debt and return 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. Including today's announcement, Newmont has divested, or has definitive agreements in place to divest, all six operations and one project classified as held for sale in its financial statements.4
Total gross proceeds from transactions announced in 2024 to date are expected to be up to $4.3 billion. This includes $3.8 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;
- $795 million from the sale of the Éléonore operation;
- Up to $275 million from the sale of the CC&V operation;
- Up to $425 million from the sale of the Porcupine 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.
Advisers and Counsel
In connection with the Porcupine 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.
