Newmont Corporation (ASX: NEM) has announced an agreement to sell its Musselwhite operation in Ontario, Canada, to Orla Mining Ltd for up to US$850 million.
The deal includes US$810 million in cash upon closing and potential contingent payments of up to US$40 million.
The transaction is expected to be finalised in the first quarter of 2025, subject to certain conditions.
Tom Palmer, Newmont’s President and Chief Executive Officer, stated: “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.”
This sale is part of Newmont’s broader divestiture program announced in February 2024, which aims to sell non-core assets from its Australian, Ghanaian, and North American business units.
With the Musselwhite deal, Newmont has surpassed its target of delivering more than US$2 billion in gross proceeds from non-core divestitures.
The total gross proceeds from transactions announced in 2024 are expected to reach up to US$2.9 billion, including:
- Up to US$475 million from the Telfer operation and 70 per cent interest in the Havieron project sale
- Up to US$1.0 billion from the Akyem operation sale
- Up to US$850 million from the Musselwhite operation sale
- US$527 million from the sale of other investments
Newmont is utilising free cash flow and divestiture proceeds to enhance shareholder value through a US$3 billion share repurchase program authorised through October 2026.
Since October 24, 2024, the company has repurchased 7.2 million shares totalling US$336 million. In total, Newmont has repurchased 22.4 million shares amounting to US$1.1 billion since the program’s inception.
The company is also making progress on its debt reduction goals, having retired approximately $500 million of debt in 2024, as it aims to reach a targeted debt balance of US$8 billion.
As Newmont continues to reshape its portfolio and strengthen its financial position, the company remains focused on completing the sales processes for its remaining North American non-core assets, expected to conclude in the first quarter of 2025.
