Agreements Now in Place to Divest All Non-Core
Operations, Announced Divestitures Expected to Generate up to $4.3
Billion in Gross Proceeds
Newmont Corporation (NYSE: NEM, TSX: NGT, ASX: NEM, PNGX: NEM)
(“Newmont” or the “Company”) announced today that it has agreed to
sell its Porcupine operation in Ontario, Canada to Discovery Silver
Corp. (“Discovery”) for up to $425 million in total consideration.
Upon closing the sale of the Porcupine operation and the previously
announced transactions, Newmont will deliver up to $4.3 billion in
total proceeds from non-core asset divestitures and
investments.
The transaction is expected to close in the first half of 2025,
subject to certain conditions being satisfied.1 Under the terms of
the agreement, Newmont expects to receive gross proceeds of up to
$425 million, which includes:
- Cash consideration of $200 million, due upon closing
- Equity consideration of $75 million in the form of Discovery
shares, to be issued upon closing2
- Deferred cash consideration of $150 million3
“Today’s announcement represents a significant milestone for
Newmont as we have agreed to sell the final non-core operation from
our divestiture program. The sale is part of Newmont’s ongoing
program to divest non-core assets as we make a strategic shift to
focus on our Tier 1 assets,” said Tom Palmer, Newmont’s
President and Chief Executive Officer. “We have full confidence
that Discovery’s leadership team will continue to operate Porcupine
responsibly, leveraging their extensive experience and history in
the area. Including the Porcupine divestiture, we expect to
generate up to $4.3 billion in total proceeds from the announced
sales of our high-quality non-core assets and investments, enabling
us to further reduce debt and return capital to shareholders.”
Divestiture Program Progress
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. Including
today’s announcement, Newmont has divested, or has definitive
agreements in place to divest, all six operations and one project
classified as held for sale in its financial statements.4
Total gross proceeds from transactions announced in 2024 to date
are expected to be up to $4.3 billion. This includes $3.8 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% interest in the Havieron project;
- Up to $1.0 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;
- Up to $275 million from the sale of the CC&V
operation;
- Up to $425 million from the sale of the Porcupine operation;
and
- $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.
Advisers and Counsel
In connection with the Porcupine transaction, BMO Capital
Markets acted as financial adviser and Goodmans LLP acted as legal
adviser.
About Newmont
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.
At Newmont, our purpose is to create value and improve lives
through sustainable and responsible mining. To learn more about
Newmont’s sustainability strategy and initiatives, go to
www.newmont.com.
Cautionary Statement Regarding Forward-Looking
Statements
This news release contains “forward-looking statements” within
the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended, which are intended to be covered by the safe harbor
created by such sections and other applicable laws. Where a
forward-looking statement expresses or implies an expectation or
belief as to future events or results, such expectation or belief
is expressed in good faith and believed to have a reasonable basis.
However, such statements are subject to risks, uncertainties and
other factors, which could cause actual results to differ
materially from future results expressed, projected or implied by
the forward-looking statements. Forward-looking statements in this
news release include, without limitation, (i) expectations
regarding outlook; (ii) statements regarding the sales of CC&V,
Éléonore, Musselwhite, Porcupine, Telfer and Havieron, and Akyem,
including, without limitation, expectations regarding timing and
closing of the pending transactions, including receipt of required
approvals and satisfaction of closing conditions; (iii)
expectations regarding receipt of consideration upon closing and
receipt of any deferred contingent cash consideration in the
future; and (iv) expectations regarding receipt of gross
consideration; and (v) other statements regarding future events or
results. Estimates or expectations of future events or results are
based upon certain assumptions, which may prove to be incorrect.
Assumptions include, but are not limited to: (i) certain exchange
rate assumptions approximately consistent with current levels; (ii)
certain price assumptions for gold, copper, silver, zinc, lead and
oil; and (iii) all closing conditions being satisfied.
Expectations regarding the divestment of assets held of sale are
subject to risks and uncertainties. Based on a comprehensive review
of the Company’s portfolio of assets, the Company announced a
portfolio optimization program to divest six non-core assets and a
development project in February 2024. The non-core assets to be
divested include CC&V, Musselwhite, Porcupine, Éléonore,
Telfer, and Akyem, and the Havieron and Coffee development
projects. While the Company concluded that these non-core assets
and the development project met the accounting requirements to be
presented as held for sale there is a possibility that the assets
held for sale may exceed one year, or not occur at all, due to
events or circumstances beyond the Company's control. As of the
date of this release, no binding agreements have been entered into
with respect to the sale of the Coffee development project. See the
September 10, 2024 press release for further details re the
agreement to divest Telfer and Havieron, the October 8, 2024 press
release for further details re the agreement to divest Akyem, the
November 18, 2024 press release for further details re the
agreement to divest Musselwhite, the November 25, 2024 press
release for further details re the agreement to divest Éléonore,
and the December 6, 2024 press release for further details re the
agreement to divest CC&V. Each are available on Newmont’s
website. Closing of such transactions remain subject to certain
conditions as indicated in such releases and notes thereto. No
assurances can be provided with respect to satisfaction of closing
conditions, the timing of closing of the transaction or receipt of
contingent consideration in the future. As noted in the footnotes
to this press release, the closing of the Porcupine operation sale
remains subject to no material adverse change and/or
transaction-related litigation, the completion of the pre-closing
restructuring, and regulatory approvals.
For a discussion of risks and other factors that might impact
future looking statements and future results, see the Company’s
Annual Report on Form 10-K for the year ended December 31, 2023
filed with the U.S. Securities and Exchange Commission (the “SEC”)
on February 29, 2024, under the heading “Risk Factors", and other
factors identified in the Company's reports filed with the SEC,
available on the SEC website or at www.newmont.com. The Company
does not undertake any obligation to release publicly revisions to
any “forward-looking statement,” including, without limitation,
outlook, to reflect events or circumstances after the date of this
news release, or to reflect the occurrence of unanticipated events,
except as may be required under applicable securities laws.
Investors should not assume that any lack of update to a previously
issued “forward-looking statement” constitutes a reaffirmation of
that statement.
______________________________ 1 Closing conditions include: (i)
no material adverse change and/or transaction-related litigation
and (ii) the completion of the pre-closing restructuring, and (iii)
regulatory approvals. See cautionary statement at the end of this
release regarding forward-looking statements. 2 To be issued to
Newmont at the same price as the bought public deal offering. See
cautionary statement at the end of this release regarding
forward-looking statements. 3 To be paid in four annual cash
payments of $37.5 million commencing on December 31, 2027. See
cautionary statement at the end of this release regarding
forward-looking statements. 4 See cautionary statement at end of
this release regarding forward-looking statements, including
expectations regarding divestments and proceeds.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20250125001998/en/
Investor Contact – Global Neil Backhouse
investor.relations@newmont.com
Investor Contact – Asia Pacific Natalie Worley
apac.investor.relations@newmont.com
Media Contact – Global Shannon Lijek
globalcommunications@newmont.com
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