Newmont (TSX:NGT,NYSE:NEM), the world’s largest gold miner, is continuing its divestiture program through the sale of its Éléonore mine in Québec to Dhilmar, a private UK-based mining firm, for US$795 million in cash.
Located in the Eeyou Istchee James Bay region, Éléonore is a prominent underground gold operation. Since producing its first gold in 2014, the mine has contributed significantly to Newmont’s output, averaging 215,000 ounces annually.
The sale is expected to close in Q1 2025, pending regulatory approvals and other standard closing conditions.
The transaction follows Newmont’s recently announced sale of the Musselwhite gold mine in Ontario to Orla Mining (TSX:OLA,NYSEAMERICAN:ORLA) for US$850 million.
Together, these two deals contribute substantially to Newmont’s efforts to reshape its portfolio — the company has now exceeded its initial target of generating US$2 billion through asset sales.
“Proceeds from this transaction will support Newmont’s comprehensive approach to capital allocation, which includes strengthening our investment-grade balance sheet and returning capital to shareholders,” said Tom Palmer, the company’s president and CEO, in a Monday (November 25) press release.
“We are pleased to be selling this operation to Dhilmar,” he added. “They have a wealth of experience in gold and copper mining and we believe Dhilmar will be excellent stewards of this asset.’
Éléonore, acquired by Newmont as part of its 2019 purchase of Goldcorp, is the second Canadian asset to be sold by Newmont as part of its ongoing divestiture program. The program aims to concentrate Newmont’s resources on its core Tier 1 gold and copper assets — those with long mine lives and the scale to generate sustainable free cash flow.
Dhilmar, the purchaser of Éléonore, is a relatively new player in the global mining industry. Alexander Ramlie, the firm’s CEO, is known for his role in the 2016 acquisition of Indonesia’s Batu Hijau copper-gold mine.
Newmont’s current approach stems from its broader portfolio optimization strategy, initiated after its acquisition of Newcrest Mining in 2023. The company initially said it was aiming to generate US$2 billion through asset sales to improve its balance sheet, increase shareholder returns and allocate capital efficiently.
Both the Musselwhite and Éléonore sales alone have added US$1.65 billion to Newmont’s divestiture proceeds.
Combined with other completed and planned asset sales, the company has raised approximately US$3.6 billion from its optimization program, significantly surpassing its original target.
In addition to Éléonore and Musselwhite, Newmont has identified other assets for potential sale, including its Porcupine mine and Coffee project in Canada, as well as its Cripple Creek & Victor mine in the US.
This strategy coincides with a broader industry trend of large mining firms divesting smaller, less profitable or more geographically dispersed assets to focus on core projects. Newmont’s approach is consistent with the strategy of prioritizing high-margin, scalable operations that promise consistent cashflow over long periods.
Companies like Dhilmar and Orla are taking advantage of these sales to expand their own portfolios.
Orla’s acquisition of the Musselwhite mine, for example, is expected to more than double its gold production, underscoring the opportunities presented by divestitures for mid-tier and private mining firms.
The gold price, which has remained strong due to global economic uncertainty, continues to play a significant role in shaping these transactions. A stable or rising price increases the attractiveness of gold assets, providing an opportune time for companies like Newmont to sell non-core properties at favorable valuations.
Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.
