Newmont (NYSE:NEM), the recent acquirer of former listed Australian miner, Newcrest Mining, has completed another significant portion of its strategic portfolio optimisation through the selldown of three more non-core projects in Canada and the U.S.
In line with last year’s commitment to offload assets no longer deemed Tier 1, Newmont has sold the Musselwhite operation and the Éléonore operation in Canada, and the Cripple Creek and Victor operations in Colorado, U.S. for US$1.7 billion ($2.7 billion).
Other non-core assets Newmont expects to divest during 1H FY25 include its Akyem operation in Ghana and its Porcupine operation in Canada for up to US$1.4 billion ($2.2 billion) in proceeds.
At the end of its "mines and projects" divestment process Newmont expects to have generated up to US$4.3 billion in total proceeds.
Transitioning the portfolio
“The closing of these transactions completes a significant portion of our strategic portfolio optimisation, initiated in early-2024, and enables us to further strengthen our investment-grade balance sheet and continue returning capital to shareholders through ongoing share repurchases,” said Newmont’s president and chief executive officer Tom Palmer.
“(The year) 2024 was a transformational year for Newmont, as we focused on the integration of the Newcrest portfolio, divestment of our non-core assets, and transitioning the business onto a stable operating and investment platform.”
Newmont defines a Tier 1 asset as an operation with “(more than) 500,000 gold equivalent ounces per year consolidated, (an) average all-in sustaining cost per ounce in the lower half of the industry cost curve, and a mine life (greater than) 10 years in countries classified in the A and B rating ranges of Moody’s, S&P and Fitch.
The only gold producer listed in the S&P 500 Index, Newmont has projects across Africa, Australia, Latin America and the Caribbean, North America, and PNG.
Newmont has reiterated its commitment to returning capital to shareholders and continues its share repurchase program, supported by the proceeds from these asset sales.
Recent financials
The U.S. gold giant produced 1.9 million attributable ounces of gold during the December 2024 quarter, bringing Newmont’s total 2024 gold production to 6.8 million attributable gold ounces.
Newmont's refreshed Tier 1 portfolio of assets contributed 5.7 million attributable gold ounces.
The company declared a $0.25 per share dividend for the December quarter, delivering $1.1 billion in total dividends to shareholders in 2024.
Newmont also produced $US2.9 billion in free cash flow for 2024, including a record US$1.6 billion in the December quarter.
While bullion recorded its first weekly loss of 2025 last week, heightened expectations for a further interest rate cut from the U.S. Federal Reserve are also likely to push investors towards gold as a non-yielding asset.
At the time of writing, the Newmont Corporation CDI (ASX: NEM) share price was $67.84, with a market capitalisation of approximately US$48.4 billion.
