Newmont to sell Éléonore for $1.2b cash

Newmont Corporation (ASX: NEM) will sell its Éléonore operation in Northern Quebec, Canada, to UK-based private mining company Dhilmar Ltd for $1.2b (US$795m) in cash consideration as part of the global miner’s continued divestiture program.

The transaction is expected to close in the Q1 CY25, subject to certain conditions being satisfied.

Upon closing the announced transactions, Newmont will have delivered up to $3.6b in gross proceeds from non-core asset divestitures and investment sales.

Newmont president and chief executive Tom Palmer comments on this.

“[This] 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,” he said.

“When we announced the acquisition of Newcrest in 2023, we committed to generating at least $2b in cash through portfolio optimisation.

“With this announced sale, we have meaningfully exceeded our target by more than $1.5b 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.

“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.”

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.

With definitive agreements in place to divest four operations and one project, Newmont is focused on completing the sales processes for its remaining North American non-core assets, expected to conclude in Q1 CY25.

Total gross proceeds from transactions announced in 2024 to date are expected to be up to $3.6b.

This includes $3.1b from non-core divestitures and $527m from the sale of other investments, detailed as follows:

• up to $475m from the sale of the Telfer operation and Newmont’s 70% interest in the Havieron project;
• up to $1b from the sale of the Akyem operation;
• up to $850m from the sale of the Musselwhite operation;
• $795m from the sale of the Éléonore operation; and
• $527m from the completed sale of other investments, including the sale of the Lundin Gold stream credit facility and offtake agreement, and the monetisation of Newmont’s Batu Hijau contingent payments.