
Newmont Corporation has announced the sale of its Porcupine operation in Ontario, Canada to Discovery Silver Corp. for up to US$425 million, marking the final transaction in its non-core asset divestiture program.
This strategic move is expected to generate up to $4.3 billion in total proceeds from asset sales and investments.
The Porcupine sale, anticipated to close in the first half of 2025, includes US$200 million in cash upon closing, US$75 million in Discovery shares, and US$150 million in deferred cash consideration.
This transaction concludes Newmont’s program to divest six operations and two projects from its Australian, Ghanaian, and North American business units, announced in February 2024.
Tom Palmer, Newmont’s President and CEO, highlighted the significance of this milestone, stating: “The sale is part of Newmont’s ongoing program to divest non-core assets as we make a strategic shift to focus on our Tier 1 assets.”
Palmer expressed confidence in Discovery’s ability to operate Porcupine responsibly, citing their extensive experience in the area.
The divestiture program has been comprehensive, including the sale of the Telfer operation and Newmont’s stake in the Havieron project for up to US$475 million, the Akyem operation for up to US$1 billion, and the Musselwhite operation for up to US$850 million.
Additionally, Newmont sold the Éléonore operation for US$795 million and the CC&V operation for up to US$275 million.
Beyond these core divestitures, Newmont has generated US$527 million from other asset sales, including the Lundin Gold stream credit facility and offtake agreement.
The company’s timing of the divestiture program has been favourable, coinciding with gold prices reaching record highs in 2024.
This strategic realignment allows Newmont to focus on its Tier 1 assets while strengthening its financial position.
The company plans to use the proceeds to reduce debt and return capital to shareholders.
As Newmont concludes this significant restructuring, the mining industry will be watching closely to see how the company leverages its streamlined portfolio in the evolving global market.