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Newmont Announces Divestment Plans for Gold Mines, Reports Strong 2023 Performance

Newmont Announces Divestment Plans for Gold

Newmont, one of the world’s leading gold mining companies, has unveiled its plans to divest several gold mines and projects that do not meet its criteria of Tier-1 assets. The company aims to focus on integrating and transforming its Tier-1 assets into a collection of the world’s best gold and copper operations and projects.

In addition to the divestment plans, Newmont has reported strong production and financial performance in its 2023 full-year report.

Among the assets to be divested are six gold mines and two gold projects. The mines include Éléonore, Musselwhite, and Porcupine in Canada, Cripple Creek and Victor in the United States, Akyem in Ghana, and Telfer in Western Australia.

Newmont also plans to sell its 70% stake in the Havieron project, located in Western Australia. Furthermore, the company intends to divest the Coffee project in Canada.

Newmont has already received interest from potential buyers for these mines and projects. The divestment is part of the company’s strategic decision to concentrate its resources on Tier-1 assets and unlock value for its stakeholders.

In terms of performance, Newmont achieved impressive results in 2023. The company produced 5.5 million ounces of gold and 891,000 gold equivalent ounces from other metals, such as copper, silver, lead, and zinc.

This robust production contributed to Newmont generating $2.8 billion in cash from continuing operations. Additionally, the company reported $88 million in free cash flow.

However, Newmont did face a net loss of $2.5 billion in 2023. This loss was primarily driven by impairment charges and reclamation expenses. Despite this setback, Newmont remains committed to enhancing its financial position and has set a near-term debt-reduction target of $1 billion for 2024.

The company has also identified $500 million in cost and productivity improvements as part of its ongoing efforts to optimize operations.

On a positive note, Newmont declared an increase in its total reserves and resources. The company now holds 136 million ounces in reserves and 174 million ounces in resources, reflecting its strong commitment to long-term sustainability and growth.

Newmont’s President and CEO, Tom Palmer, expressed the company’s strategic vision for the future. He stated, “We have several Tier-2 assets that are very good assets, run by very good people, but that don’t make our Tier-1 category.” Palmer further emphasized that 2023 was a transformational year for Newmont, bringing benefits to all stakeholders.

Looking ahead, Newmont anticipates production guidance of approximately 6.9 million ounces in 2024, with 5.6 million ounces coming from its Tier-1 Portfolio. The company aims to deliver on its commitments and set the stage for significant growth in 2025 and beyond.

In conclusion, Newmont’s decision to divest several gold mines and projects aligns with its strategy to focus on Tier-1 assets. The company’s 2023 performance, although marked by a net loss, showcased strong production and financial results.

Newmont remains optimistic about the future and is determined to integrate and transform its Tier-1 assets into a collection of the world’s best gold and copper operations and projects.