Newmont aims to realise over $2bn in cash from portfolio optimisation with Newcrest, focus on growing its portfolio of tier-1 assets and emerging tier-1 assets, and divest six non-core assets, along with two non-core projects
Newmont announces assets sale, job cuts. (Credit: Artyom Korshunov on Unsplash)
US-based gold mining company Newmont has unveiled its plans to divest eight non-core assets and trim its workforce to reduce debt following its $17.14bn acquisition of Newcrest.
Recently, the gold miner announced its fourth quarter and 2023 financial results, in which the company beat quarterly profit estimates.
Also, analysts highlighted a $1.2bn impairment charge related to its Penasquito mine in Mexico and a 2024 gold production forecast that fell short of some market expectations.
Newmont aims to realise over $2bn in cash from portfolio optimisation with Newcrest and will focus on growing its portfolio of tier-1 assets and emerging tier-1 assets.
The company intends to divest six non-core assets Éléonore, Musselwhite, Porcupine, CC&V, Akyem and Telfer, along with two non-core projects Havieron and Coffee.
It has identified an additional $500m of cost and productivity improvements over and above initial synergy commitments.
Newmont president and CEO Tom Palmer said: “This portfolio provides our shareholders with exposure to the highest concentration of Tier 1 assets in the sector, each with the scale and mine life to generate strong free cash flows, and all located in the world’s most favourable mining jurisdictions.
“It is from this platform that Newmont has established a balanced shareholder return framework, designed to return capital to shareholders through a stable base dividend and share repurchase program.
“As we look forward to this very important year of integration and transformation, I am confident in the quality of our assets and the capability of our team to deliver on our commitments, return capital to shareholders and justify our position as the benchmark gold equity.”
Newmont had a total debt of $8.8bn at the end of last year and is planning to achieve a near-term debt reduction of $1bn and the divestment will partly help meet that target.
The company is expected to produce 6.93 million ounces of gold in 2024, compared with 5.5 million ounces last year.
It has reported an adjusted net income of 50 cents per share for the three months ended 31 December 2023, surpassing the estimates of 46 cents, as per LSEG data.
Newmont chief operating officer Rob Atkinson will step down in May, succeeded by former Anglo American Platinum top management Natascha Viljoen.