Newmont divestment program packs a punch in Q3

Newmont says it expects to receive at least $2b in gross divestiture proceeds from high-quality, non-core asset sales, in addition to the $527m dollars in cash already received from other investment sales since the beginning of 2024.
Newmont says it expects to receive at least $2b in gross divestiture proceeds from high-quality, non-core asset sales, in addition to the $527m dollars in cash already received from other investment sales since the beginning of 2024.

Newmont (ASX: NEM) is revving up for a strong finish to CY24, capitalising off its divestment program and a roaring gold market in Q3.

In Q3 CY24, Newmont announced the sale of its Akyem operation in the Republic of Ghana and its Telfer operation in WA, two landmark agreements in the company’s continuing program to divest its non-core assets as it shifts focus to its Tier 1 assets.

Newmont president and chief executive Tom Palmer comments on the company’s Q3 results.

“In the third quarter, Newmont delivered 2.1moz gold equivalent and generated $760m in free cash flow from our world-class portfolio,” he said.

“We continue to make meaningful progress on our non-core divestment program with the two transactions announced in the quarter, which are expected to deliver up to $1.5b in combined gross proceeds.

“Our divestiture progress and strong free cash flow generation have positioned us to continue reducing debt and repurchasing shares, creating significant and lasting value for our shareholders.”

The company produced 1.7moz attributable to gold, primarily driven by production of 1.4moz of gold from Newmont’s Tier 1 Portfolio, as well as 430,000oz gold equivalent of from copper, silver, zinc and lead, including 37,000t of copper.

Newmont expects to meet 2024 production guidance, delivering attributable production of 1.8moz of gold at an all-in sustaining cost (AISC) of $1,475poz in Q4 CY24.

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