Newmont to Divest Six Mines and Two Projects

Newmont, the world’s largest gold producer, has announced its plan to sell six mines and two projects, as part of its portfolio optimization strategy.
The company said it would focus on its ten tier-one assets, which are expected to produce 6.7 million gold ounces by 2028, and have the potential to generate strong free cash flows.
The six mines that Newmont plans to shed are Éléonore, Musselwhite and Porcupine in Canada, CC&V in the US, Akyem in Ghana, and Telfer in Australia.
The two projects that will be divested are Havieron in Australia and Coffee in Canada.
Two of the assets that Newmont acquired as part of the Newcrest deal last year – Telfer and Havieron – are among those that will be sold.
Newmont completed the acquisition of Newcrest Mining Limited, the second-largest gold producer, on November 6, 2023, creating a gold and copper giant with operations in 11 countries.
Newmont’s go-forward portfolio consists of six managed tier-one assets, including Boddington, Tanami, Cadia and Lihir in Australia, Peñasquito in Mexico, and Ahafo in Ghana.
It also includes assets owned through two non-managed joint ventures at Nevada Gold Mines in the US and Pueblo Viejo in the Dominican Republic.

Additionally, it has three emerging tier-one assets, Merian in Suriname, Cerro Negro in Argentina, and Yanacocha in Peru, and an emerging tier-one district in the Golden Triangle in British Columbia, where Red Chris and Brucejack are located.
Newmont’s tier-one portfolio also includes attributable production from its equity interest in Lundin Gold.
“Newmont’s go-forward portfolio is the new standard for gold and copper mining,” said Tom Palmer, Newmont’s president and CEO.
“This portfolio provides our shareholders with exposure to the highest concentration of tier-one assets in the sector, each with the scale and mine life to generate strong free cash flows, and all located in the world’s most favorable mining jurisdictions,” he added.
Newmont reported a net loss of $2.5 billion for 2023, driven by impairment charges, reclamation charges, and transaction and integration costs.
However, it delivered $1.4 billion in dividends to shareholders, and generated $2.8 billion of cash from continuing operations.
The company expects to produce 6.9 million gold ounces in 2024, with gold costs applicable to sales of $1,050 per ounce, and gold all-in sustaining costs of $1,400 per ounce.
Newmont said it would continue to pursue growth opportunities, including the Yanacocha sulfides project in Peru, which is expected to extend the mine life beyond 2040.
The company also said it would maintain its commitment to environmental, social, and governance (ESG) excellence, and create value for all its stakeholders.
Source: Mining weekly