Newmont Announces Agreement for Sale of Éléonore for $795 Million in Cash

Press Release

November 25, 2024

Newmont Corporation announced today that it has agreed to sell its Éléonore operation in Northern Quebec, Canada, to Dhilmar Ltd (“Dhilmar”) for $795 million in cash consideration. The transaction is expected to close in the first quarter of 2025, subject to certain conditions being satisfied. Upon closing the announced transactions, Newmont will have delivered up to $3.6 billion in gross proceeds from non-core asset divestitures and investment sales. 

“Today’s announcement is another step forward in Newmont’s journey to create a go-forward portfolio of Tier 1 gold and copper assets, each with the scale and mine life to generate strong free cash flows for several decades,” said Tom Palmer, Newmont's president and chief executive officer . “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. 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.”

Dhilmar is a newly incorporated, UK-based private mining company. The company is led by its CEO and Managing Director, Alexander Ramlie, and supported by board members with decades of mining experience across a range of commodities and with both surface and underground operations. Mr. Ramlie and his team worked closely with Newmont in 2016 to acquire the Batu Hijau copper and gold mine in Indonesia on behalf of PT Amman Mineral Internasional Tbk (“Amman”). Under Mr. Ramlie’s leadership, Amman’s investment in Batu Hijau has grown to a market capitalization exceeding $40 billion and has maintained a strong safety, environmental, and social performance record, reflecting its commitment to sustainable mining practices.

“We are pleased to be selling this operation to Dhilmar,” Palmer added. “They have a wealth of experience in gold and copper mining and we believe Dhilmar will be excellent stewards of this asset.”

In Feb. 2024, Newmont announced the intent to divest its non-core assets, including six operations and two projects from its Australian, Ghanaian, and North American business units. With definitive agreements in place to divest four operations and one project, the company is focused on completing the sales processes for its remaining North American non-core assets, which are expected to conclude in the first quarter of 2025.

Total gross proceeds from transactions announced in 2024 to date are expected to be up to $3.6 billion. This includes $3.1 billion from non-core divestitures and $527 million from the sale of other investments, detailed as follows:

  • Up to $475 million from the sale of the Telfer operation and Newmont's 70% interest in the Havieron project;
  • Up to $1.0 billion from the sale of the Akyem operation;
  • Up to $850 million from the sale of the Musselwhite operation;
  • $795 million from the sale of the Éléonore operation; and
  • $527 million from the completed sale of other investments, including the sale of the Lundin Gold stream credit facility and offtake agreement, and the monetization of Newmont's Batu Hijau contingent payments.

 

Related article search: