Published: November 25, 2024 | Share This

[Click image to enlarge]

Newmont Corporation has agreed to sell its Éléonore Operation in Northern Quebec, Canada, to Dhilmar Ltd. for $795 million in cash consideration.

The transaction is expected to close in the first quarter of 2025, subject to certain conditions being satisfied.

“Today’s announcement is another step forward in Newmont’s journey to create a go-forward portfolio of tier 1 gold and copper assets, each with the scale and mine life to generate strong free cash flows for several decades,” said Tom Palmer, Newmont’s president and chief executive officer.

“When we announced the acquisition of Newcrest in 2023, we committed to generating at least $2 billion in cash through portfolio optimization. With this announced sale, we have meaningfully exceeded our target by more than $1.5 billion to date. Proceeds from this transaction will support Newmont’s comprehensive approach to capital allocation, which includes strengthening our investment-grade balance sheet and returning capital to shareholders,” added Palmer.

“We are pleased to be selling this operation to Dhilmar. They have a wealth of experience in gold and copper mining and we believe Dhilmar will be excellent stewards of this asset,” concluded Palmer.

Dhilmar is a newly incorporated, UK-based private mining company. The company is led by its CEO and managing director, Alexander Ramlie, and supported by board members with decades of mining experience across a range of commodities and with both surface and underground operations. Ramlie and his team worked closely with Newmont in 2016 to acquire the Batu Hijau copper and gold mine in Indonesia on behalf of Amman Mineral Internasional. Under Ramlie’s leadership, Amman’s investment in Batu Hijau has grown to a market capitalization exceeding $40 billion and has maintained a strong safety, environmental, and social performance record, reflecting its commitment to sustainable mining practices.

In February 2024, Newmont released details of its 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 four operations and one project, the company is focused on completing the sales processes for its remaining North American non-core assets, which are expected to conclude in the first quarter of 2025.

Total gross proceeds from transactions announced in 2024 to date are expected to be up to $3.6 billion. This includes $3.1 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 percent interest in the Havieron
  project
• Up to $1 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
• $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

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.

Be in-the-know when you’re on-the-go!

CLICK HERE to register your email address.

Copyright © 2024 Mining Connection LLC. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed without permission.

For licensing permission, .(JavaScript must be enabled to view this email address)