The company expects to generate up to $4.3 billion in gross proceeds from the optimization process, including $3.8 billion from non-core asset sales and $527 million from other investment disposals. The capital raised has strengthened Newmont's balance sheet and enabled its share repurchase program to continue.
The leading miner sold the Akyem mine to China-based Zijin Mining, while Canadian precious metals company Discovery Silver (OTCQX:DSVSF) gained control over the Porcupine Complex.
As part of the Porcupine deal, Newmont received 119.7 million common shares in Discovery, representing an approximate 15% stake in the company. The shares are held via Newmont's wholly owned subsidiary, Goldcorp Inc.
Discovery has ambitious plans for Porcupine, whose complex in Ontario's prolific Timmins gold camp includes the high-grade Hoyle Pond mine, the Borden underground operation, the Pamour open-pit project, and the historic Dome Mine. CEO Tony Makuch expressed optimism, citing the latest technical report.
"Our recently released technical report estimated average annual production of over 285,000 ounces of gold for the next 10 years, with total production extending to 2046," he said, clarifying that Discovery plans to enhance production and improve operational margins.
UBS recently upgraded Newmont to "Buy," with a price target of $60, citing improved financial positioning, high free cash flow potential, and favorable market dynamics. Yet, even after the portfolio optimization, Newmont remains a complex company with 11 assets across nine countries.
Price Watch: Newmont closed at $55.95 on Wednesday. The stock is up 45.82% year-to-date.
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