Newmont Corp Stock Price, News & Analysis

Newmont (NYSE: NEM) has completed the sale of three non-core operations: Musselwhite and Éléonore in Canada, and Cripple Creek & Victor (CC&V) in Colorado, USA. The company has received $1.7 billion in after-tax cash proceeds before closing adjustments.

The divestment is part of Newmont's strategic portfolio optimization initiated in early-2024. Total gross proceeds from announced divestitures are expected to reach $4.3 billion, including $3.8 billion from non-core divestitures and $527 million from other investment sales.

Newmont anticipates closing two additional asset sales in the first half of 2025: the Akyem operation in Ghana (up to $1.0 billion) and the Porcupine operation in Canada (up to $425 million), expected to generate approximately $0.8 billion in after-tax cash proceeds.

Newmont (NYSE: NEM) reported gold Mineral Reserves of 134.1 million attributable ounces for 2024, slightly down from 135.9 million ounces in 2023. The company's go-forward Tier 1 portfolio includes 125.5 million attributable gold ounces and significant reserves in other metals, including 13.5 million attributable tonnes of copper and 530 million attributable ounces of silver.

The company's reserve base has approximately doubled since 2018, with an average reserve grade of 0.96 grams per tonne. Newmont increased its reserves gold price assumption by 21% to $1,700 from $1,400 per ounce. The company expects to invest approximately $275 million in exploration during 2025, with 75% dedicated to near-mine expansion programs and brownfields.

Key changes include a 13% increase in Boddington reserves to 10.8 million ounces, while Brucejack reserves decreased by 39% to 1.9 million ounces. The company maintains strong operating assets with gold reserve life of ten years or more at multiple sites.

Newmont (NYSE: NEM) reported strong fourth quarter and full year 2024 results, with Net Income of $3.4 billion and Adjusted Net Income of $3.48 per diluted share. The company generated $6.3 billion in operating cash flow and $2.9 billion in Free Cash Flow for the year.

Key highlights include:

• Production of 6.8 million attributable gold ounces and 1.9 million gold equivalent ounces from other metals
• Completed integration of Newcrest assets
• Announced divestment of six non-core assets with potential proceeds up to $4.3 billion
• Maintained strong balance sheet with $3.6 billion in cash and $7.7 billion in total liquidity
• Reduced debt by $1.4 billion over 12 months

For 2025, Newmont expects:

• Attributable production of 5.9 million gold ounces
• Gold AISC of $1,630 per ounce for Total Portfolio
• Sustaining capital spend of $1.8 billion
• Development capital spend of $1.3 billion

Newmont (NYSE: NEM) and its subsidiary Newcrest Finance announced the early redemption of $927,754,000 in principal of their 5.30% Notes due 2026. The redemption will take place on February 7, 2025, and includes the payment of a make-whole amount plus accrued and unpaid interest up to the redemption date.

This action is part of Newmont's broader debt reduction strategy, with the company having retired approximately $1.4 billion of debt over the past 12 months. The initiative demonstrates Newmont's commitment to deleveraging and strengthening its balance sheet.

Newmont (NYSE: NEM) has agreed to sell its Porcupine operation in Ontario, Canada to Discovery Silver Corp. for up to $425 million. The transaction includes $200 million in cash, $75 million in Discovery shares upon closing, and $150 million in deferred cash consideration. The deal is expected to close in first half of 2025.

This marks the final non-core operation divestiture in Newmont's strategic program. Including Porcupine, Newmont's announced divestitures and investments are expected to generate up to $4.3 billion in total proceeds. The company has now secured agreements to divest all six operations and one project classified as held for sale, including Telfer, Akyem, Musselwhite, Éléonore, CC&V, and Porcupine operations.

The proceeds will be used to reduce debt and return capital to shareholders as Newmont shifts focus to its Tier 1 assets.

Newmont (NYSE: NEM) has scheduled its fourth quarter and full year 2024 earnings release for Thursday, February 20, 2025, after North American markets close. The company will host a conference call at 5:30 p.m. Eastern Standard Time on the same day (9:30 a.m. Australian Eastern Daylight Time on Friday, February 21, 2025) to discuss the results.

The conference call will be accessible via webcast through Newmont's website, with materials becoming available after market close on February 20. Both the webcast and conference call will be archived for future reference on the company's website under the Investor Relations section.

Newmont (NYSE: NEM) announced that its wholly-owned subsidiary, Newmont Canada FN Holdings ULC, has sold 9,500,000 common shares of Star Diamond through a private placement transaction. The shares were sold at $0.02 per share for a total of $190,000. This transaction represents approximately 1.54% of Star Diamond's outstanding shares, reducing Newmont's ownership from 11.45% to 9.92%. While Newmont Canada currently has no plans to acquire additional Star Diamond shares, it may do so in the future depending on market conditions.

Newmont has agreed to sell its Cripple Creek & Victor (CC&V) operation in Colorado to SSR Mining for up to $275 million in cash consideration. The deal includes $100 million cash at closing and two deferred payments of $87.5 million each, contingent on regulatory approvals.

This transaction is part of Newmont's broader divestment program of non-core assets, which has generated up to $3.9 billion in gross proceeds from announced transactions in 2024. This includes $3.4 billion from non-core divestitures and $527 million from investment sales. The CC&V transaction is expected to close in Q1 2025.

The company will retain 90% responsibility for incremental closure costs if they exceed $500 million after an updated regulator-approved closure plan.

Newmont has agreed to sell its Éléonore operation in Northern Quebec, Canada, to Dhilmar for $795 million in cash. The transaction is expected to close in Q1 2025. This sale is part of Newmont's larger divestiture program, which has now generated up to $3.6 billion in gross proceeds, exceeding their initial $2 billion target by more than $1.5 billion.

The company has announced agreements to divest four operations and one project, with remaining North American non-core assets sales expected to conclude in Q1 2025. The total proceeds include $3.1 billion from non-core divestitures and $527 million from investment sales.