Newmont Declares Monetization of Equity Received Through Divestitures

Newmont Corporation NEM has executed agreements to sell its shares in Greatland Resources Limited and Discovery Silver Corp, for total cash proceeds of around $470 million after taxes and commissions.

This move aligns with Newmont’s February 2024 announcement to divest select high-quality, non-core assets as part of its strategy to build a leading portfolio of world-class gold and copper operations and projects. The sale of Greatland and Discovery shares helps simplify Newmont’s investment portfolio while generating additional cash for the company.

Newmont is well-positioned to meet its 2025 targets, continuing to deliver robust free cash flow from its world-class portfolio of high-quality, long-life assets. Following this announcement, the company anticipates generating $3 billion in after-tax cash proceeds from its 2025 divestiture program. These funds will support Newmont’s capital allocation strategy, which focuses on reinforcing its balance sheet and delivering returns to shareholders.

In conjunction with Greatland, Newmont agreed to sell half of its shares in June 2025. These shares were originally received as part of the consideration for Newmont’s 2024 divestment of the Telfer operation and its 70% stake in the Havieron gold-copper project to Greatland. Following the sale, NEM’s remaining equity stake in Greatland is roughly 9.9%.

In coordination with Discovery, Newmont agreed to sell its entire shareholding in two phases, in May and July 2025. These shares were received as part of the consideration for the 2025 divestment of the Porcupine mine to Discovery. 

Newmont’s shares have gained 18.9% in the past year compared with a 32% rise of the industry.

Newmont anticipates gold production for 2025 of about 5.9 million ounces. The company also projects a costs applicable to sales (CAS) for gold at $1,200 per ounce and an all-in-sustaining costs (AISC) of $1,630 per ounce.

NEM’s Zacks Rank & Other Key Picks

NEM currently carries a Zacks Rank #2 (Buy).

Other top-ranked stocks in the basic materials space include Carpenter Technology Corporation CRS, Agnico Eagle Mines Limited AEM and Avino Silver & Gold Mines Ltd. ASM.

Carpenter Technology currently carries a Zacks Rank #2. CRS beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 11.1%. The company's shares have soared 43.3% in the past year. You can see the complete list of today's Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Agnico Eagle’s current-year earnings is pegged at $1.61 per share. AEM, carrying a Zacks Rank #1 (Strong Buy), surpassed the Zacks Consensus Estimate in each of the trailing four quarters, with an average earnings surprise of 12.3%. The company's shares have rallied 74.4% in the past year.

Avino Silver, which currently carries a Zacks Rank #1, beat the consensus estimate in each of the trailing four quarters. In this time frame, it delivered an earnings surprise of roughly 104.1%, on average. ASM's shares have rallied 330% in the past year.

 

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This article originally published on Zacks Investment Research (zacks.com).

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