Newmont Completes A Year-Long Portfolio Optimization Process

Newmont Corporation NEM has officially concluded its portfolio optimization initiative. The year-long process, initiated after the Newcrest merger, ended with the sales of its Akyem mine in Ghana and the Porcupine operation in Canada.

"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," Tom Palmer, Newmont's President and CEO, said in a statement.

The company expects to generate up to $4.3 billion in gross proceeds from the optimization process, including $3.8 billion from non-core asset sales and $527 million from other investment disposals. The capital raised has strengthened Newmont's balance sheet and enabled its share repurchase program to continue.

The leading miner sold the Akyem mine to China-based Zijin Mining, while Canadian precious metals company Discovery Silver DSVSF gained control over the Porcupine Complex.

As part of the Porcupine deal, Newmont received 119.7 million common shares in Discovery, representing an approximate 15% stake in the company. The shares are held via Newmont's wholly owned subsidiary, Goldcorp Inc.

Discovery has ambitious plans for Porcupine, whose complex in Ontario's prolific Timmins gold camp includes the high-grade Hoyle Pond mine, the Borden underground operation, the Pamour open-pit project, and the historic Dome Mine. CEO Tony Makuch expressed optimism, citing the latest technical report.

"Our recently released technical report estimated average annual production of over 285,000 ounces of gold for the next 10 years, with total production extending to 2046," he said, clarifying that Discovery plans to enhance production and improve operational margins.

Newmont caught the interest of investors and analysts as gold surged over 27% year-to-date and passed $3,300 per ounce, driven by economic uncertainty, central bank demand, and a weaker U.S. dollar. This price level represents nearly double Newmont's 2024 average all-in sustaining cost of $1,620 per ounce in 2024, providing a wide margin that supports long-term profitability.

UBS recently upgraded Newmont to "Buy," with a price target of $60, citing improved financial positioning, high free cash flow potential, and favorable market dynamics. Yet, even after the portfolio optimization, Newmont remains a complex company with 11 assets across nine countries.

Price Watch: Newmont closed at $55.95 on Wednesday. The stock is up 45.82% year-to-date.

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