Newmont Announces Sale of Musselwhite for up to $850 Million
Gross Divestment Proceeds to Date are Expected to Reach up to
Under the terms of the agreement, Newmont will receive cash consideration of
“We are pleased to be selling our Musselwhite operation to Orla and have full confidence that they will continue to operate responsibly, while maintaining strong partnerships with the mine’s workforce and local and Indigenous communities,” said Tom Palmer, Newmont's President and Chief Executive Officer. “Today’s announcement signifies Newmont’s continued progress toward building our go-forward portfolio and delivering on the transaction commitments we made at the beginning of the year. The announced divestitures are expected deliver up to
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. With definitive agreements in place to divest the assets in
Total gross proceeds from transactions announced in 2024 to date are expected to be up to
-
Up to
from the sale of the Telfer operation and Newmont's$475 million 70% interest in the Havieron project; -
Up to
from the sale of the Akyem operation;$1.0 billion -
Up to
from the sale of the Musselwhite operation; and$850 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.$527 million
Capital Allocation
Newmont continues to leverage free cash flow from its operations and proceeds from divestitures to enhance long-term value for shareholders by repurchasing shares on a ratable basis. In line with this strategy, the Company has an aggregate
Since October 24, 2024, Newmont has repurchased 7.2 million shares, totaling
Additionally, Newmont has made significant progress toward reaching its targeted debt balance of
Advisers and Counsel
In connection with the Musselwhite 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
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 Musselwhite, 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; (iv) expectations regarding use of sale proceeds, capital allocation priorities, and return capital to shareholders; (v) expectations regarding the progress of the divestiture program and the sale of assets which have been designated as assets held for sale; (vi) expectations regarding capital allocation, share repurchase programs and future share repurchases; and (vi) 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.
Divestment Programs: 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’s 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 Coffee development project. 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 CC&V, Porcupine, Éléonore or the Coffee development project. The closing of the Telfer/Havieron sale remains conditional on satisfaction of certain conditions including: (i) Newmont and Greatland receiving approval for the transaction from the Foreign Investment Review Board (FIRB); (ii) transfer of key approvals and tenements; (iii) assignment of key contracts and leases; (iv) obtaining specific environmental licenses; (iv) restart of operations at Telfer following remediation of TSF8; and (v) other customary closing conditions. Under the terms of the agreement, expected gross proceeds of up to
Share Repurchase Programs: Investors are reminded that that the extent to which the Company repurchases its shares, and the timing of such repurchases, will depend upon a variety of factors, including trading volume, market conditions, legal requirements, business conditions and other factors. The repurchase program may be discontinued at any time, and the program does not obligate the Company to acquire any specific number of shares of its common stock or to repurchase the full authorized amount. Consequently, the Board of Directors may revise or terminate such share repurchase authorization in the future.
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
1 Up to a maximum
2 Closing conditions include: (i) Orla shareholder approval, (ii) no material adverse change and no transaction-related litigation, (iii) the completion of the pre-closing reorganization, and (iv) regulatory approvals, including Canadian Competition Act. See cautionary statement at the end of this release regarding forward-looking statements.
3 See cautionary statement at end of this release regarding forward-looking statements, including expectations regarding divestments and proceeds.
4 In February 2024, the Board of Directors authorized a
5 Includes share repurchases completed through November 15, 2024.
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Investor Contact – Global
Neil Backhouse
investor.relations@newmont.com
Investor Contact –
Natalie Worley
apac.investor.relations@newmont.com
Media Contact – Global
Jennifer Pakradooni
globalcommunications@newmont.com
Source: Newmont