Newmont Completes $425 Million Asset Sale, Focuses On British Columbia Growth

Newmont Corporation NEM has finalized a $425 million deal to sell its Porcupine mine in Ontario to Discovery Silver DSVSF, thus concluding its divestment from non-core assets. This sale, consisting of $200 million in cash, $75 million in Discovery shares, and $150 million in deferred payments, is the latest step in Newmont's portfolio optimization, focusing on Tier 1 assets.

"Today's announcement represents a significant milestone as we conclude our divestiture program," said Newmont CEO Tom Palmer. "The proceeds from these non-core sales, totaling up to $4.3 billion, will enable us to reduce debt and return capital to shareholders."

Following the $19 billion acquisition of Newcrest, Newmont launched a divestiture program in February 2024, selling six operations and two projects across Australia, Ghana, and North America.

Located within the prolific Timmins gold camp, Newmont acquired Porcupine as a part of Goldcorp's portfolio in 2017. The site includes the Hoyle Pond and Pamour mines, the Dome milling facility, and the newer Borden mine. Together, the complex has contributed an average of 285,000 ounces of gold annually and holds significant exploration potential.

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Despite divesting Porcupine, Newmont continues to maintain a strong presence in Canada. The Newcrest acquisition brought two assets within British Columbia's mineral-rich Golden Triangle—the Brucejack gold mine and a 70% stake in the Red Chris copper-gold mine.

Newmont has ambitious plans for Red Chris, including transitioning the operation to underground block cave mining.

"The thing with block cave mining is you have to do all your development work up front before you start having the cash generated from the mine," Palmer said in an interview for BIV, noting the cost estimate of $2 billion but low requirements for further capital expenditures.

"Once operational, the block cave project could significantly increase copper production, cementing British Columbia's position as a global leader in critical minerals," Palmer noted. He added, "We see our presence in BC extending well into the end of this century."

Long-term plans also include the Galore Creek project, which holds 12 billion pounds of copper reserves and is expected to increase Canada's copper production by 35%. Although this project will only commence after Red Chris is fully operational, its potential to supply critical metals aligns with the global energy transition trend, providing a lucrative diversification for a leading gold mining company. 

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Image created using artificial intelligence via Midjourney.