Newmont (NYSE, ASX: NEM; TSX: NGT) says it has netted around $470 million from selling equity stakes in Greatland Resources (ASX: GGP) and Discovery Silver (TSX: DSV) as part of ongoing efforts to generate cash for its core mining business.
In February 2024, the world’s largest gold miner announced plans to divest certain non-core assets, including six mines across Canada, Australia and Ghana, to improve its cash position and optimize its portfolio by focusing on “higher-quality, tier one assets.”
The monetization of Greatland and Discovery shares further streamlines Newmont’s equity portfolio, while generating cash for the business, the Denver-based company said in a news release on Tuesday.
Newmont received the shares through its divestment of the Telfer operation (along with a 70% stake in the Havieron project) in Australia to Greatland Gold and the Porcupine operation in Ontario to Discovery Silver. Following the asset sales, Newmont held approximately 20% of Greatland Gold and 15% of Discovery Silver.
Greatland Resources, an Australia‑incorporated parent, was created last month in a corporate restructuring and shareholders of Greatland Gold exchanged their shares for shares in Resources in a UK scheme of arrangement. Greatland Gold is a subsidiary, but the stock listing resides with Greatland Resources.
230% gain
In its disclosure, Newmont said it sold about half of the Greatland Gold shares last month, realizing a 230% gain relative to their value from September, when the Telfer-Havieron asset sales were announced. It now holds approximately 9.9% of the Australian miner.
The Discovery Silver shares were sold in two tranches, one in May and one in June, for a combined 200% return from January 2025, the time of the Porcupine transaction announcement. Newmont is no longer a shareholder in Discovery.
$3B cash
In its statement Tuesday, Newmont said that with the share sales, it now expects to generate $3 billion in after-tax cash proceeds from its divestiture program in 2025 to support capital allocation priorities.
The miner added that it remains on track to deliver on its 2025 guidance, while continuing to generate strong free cash flow from its “world-class portfolio” of high-quality, long-life assets.
Its stock traded 1.7% higher by mid-Wednesday at $80.04 in Toronto for a market capitalization of $87.3 billion.
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