Newmont Corporation Completes Divestiture Program
Newmont Corporation has finalized the sales of its Akyem operation in Ghana and its Porcupine operation in Canada. With these transactions now closed, the Company has completed the divestiture program announced in February 2024.
Completion of Non-Core Asset Divestiture Program
"Today, I am pleased to announce the successful completion of our non-core asset divestiture program with the sale of Akyem and Porcupine, generating total after-tax cash proceeds of approximately $850 million before closing adjustments," said Tom Palmer, Newmont’s President and Chief Executive Officer. "This is a significant milestone for Newmont, as we have now divested all six of our non-core operations from the program announced in early-2024. With the cash proceeds received this year, we remain committed to continuing to strengthen our balance sheet and return capital to shareholders through ongoing share repurchases."
Total Proceeds from Announced Divestitures
Total gross proceeds from announced divestitures are expected to total up to $4.3 billion, which includes $3.8 billion from non-core divestitures and $527 million from the sale of other investments.
Porcupine Early Warning Disclosure
Under the terms of Newmont’s sale of the Porcupine operation in Ontario, Canada, the consideration received included 119,716,667 common shares of Discovery Silver Corp. The Consideration Shares are held by Goldcorp Inc., a wholly owned subsidiary of Newmont. As a result of the closing, Newmont, which did not hold any common shares of Discovery prior to the transaction, now beneficially owns shares representing approximately 15% of Discovery’s issued and outstanding common shares.
Newmont’s Investment in Discovery
Newmont will evaluate its investment in Discovery from time to time and may, based on such evaluation, market conditions and other circumstances, increase or decrease its shareholdings as circumstances require through market transactions, private agreements, or otherwise. This press release is issued pursuant to the early warning provisions of Canadian securities legislation.
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.
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.
Conclusion
In conclusion, Newmont Corporation has successfully completed its non-core asset divestiture program, generating significant cash proceeds and strengthening its balance sheet. The Company remains committed to returning capital to shareholders through ongoing share repurchases. With its world-class portfolio of assets and principled environmental, social, and governance practices, Newmont is well-positioned for future success. Investors can expect the Company to continue evaluating its investment in Discovery and making adjustments as necessary to drive long-term value creation.
