Newmont Corporation has completed the sale of its entire 13.3% stake in Orla Mining Ltd., generating approximately $439 million in gross proceeds. The transaction involved the disposal of 43 million shares at a price of $10.14 per share through the Toronto Stock Exchange, marking a significant step in Newmont’s ongoing portfolio optimization strategy.
This divestiture is part of Newmont’s broader initiative to streamline its operations and focus on high-quality, long-life assets. Following its $17.14 billion acquisition of Australian mining company Newcrest in 2023, Newmont announced plans to divest non-core assets, reduce debt, and enhance shareholder value. The company aims to unlock over $2 billion in cash through these strategic asset sales.
Since November 2024, Newmont has divested several Canadian assets, including the Musselwhite Gold Mine in Ontario, which was sold to Orla Mining for $850 million. Additionally, earlier this week, Newmont agreed to sell its Coffee Project in Yukon to Fuerte Metals for up to $150 million.
The market responded positively to the announcement, with Newmont’s stock rising 2.9% to $80.63, making it one of the top-performing S&P 500 stocks and approaching its highest level since April 2022.
Orla Mining, a Canadian-based gold producer, has benefited from its relationship with Newmont, which began with the development of the Camino Rojo gold mine in Mexico. Earlier this year, Orla acquired the Musselwhite mine from Newmont, further strengthening their partnership. Despite the sale, Newmont CEO Tom Palmer expressed confidence in Orla’s ability to drive value for shareholders.
This strategic move underscores Newmont’s commitment to focusing on its core operations and maximizing shareholder returns through disciplined capital allocation and asset management.
Looking ahead, analysts say Newmont’s divestment strategy could free up capital to invest in Tier 1 assets globally, including high-potential projects in Nevada, Australia, and South America. By focusing on larger, longer-life operations, Newmont is positioning itself to maintain production growth while optimizing returns, even amid fluctuating gold prices and global economic uncertainty.
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