A Major Asset Divestment
Newmont (NYSE: NEM, TSX: NGT), the world’s largest gold mining company, has announced the sale of its Éléonore mine in Quebec to UK-based Dhilmar Ltd for $795 million in cash. This transaction is part of Newmont’s ongoing efforts to divest non-core assets and optimize its portfolio.
Éléonore: A Key Gold Mine in Quebec
Located in Eeyou Istchee/James Bay, 800 km north of Montreal, Éléonore is one of the largest gold mines in Quebec. The underground mine commenced gold production on October 1, 2014, and achieved commercial production by April 1, 2015. It currently has an annual gold output of 215,000 ounces.
Part of a Larger Divestment Strategy
The sale of Éléonore is the second in a series of planned divestments by Newmont. This deal is expected to close in the first quarter of 2025.
Recently, Newmont also sold its Musselwhite gold mine in Ontario to Orla Mining (TSX: OLA) for $850 million. These transactions form part of a broader initiative to raise $3.6 billion through asset sales announced in 2024.
“When we announced the acquisition of Newcrest in 2023, we committed to generating at least $2 billion in cash through portfolio optimization. With this announced sale, we have meaningfully exceeded our target by more than $1.5 billion to date,” said Tom Palmer, Newmont’s President and CEO.
Other Assets Up for Sale
Newmont has additional Canadian assets on the market, including the Porcupine mines and the Coffee project. The company also plans to sell its Cripple Creek & Victor mine (CC&V) in the United States as part of its continued focus on core operations.
Market Reaction
The announcement led to a 3.23% decline in Newmont’s share price as of 11:10 p.m. EDT, with the company’s market capitalization standing at $47.79 billion.
