Gold giant Newmont reveals strategy for capitalizing on shares obtained through successful asset-selling initiative
Newmont Corporation, a prominent player in the global mining industry and a constituent of the S&P 500 Index, has announced the sale of shares in Discovery Silver Corp and Greatland Resources Limited. The sale, expected to generate approximately $470 million, is part of Newmont's ongoing divestiture program.
The sale of Discovery shares, scheduled for late-July 2025, is expected to reflect an approximately 200% return relative to the value announced at the time of a previous transaction. The sale of Greatland shares is slated for June 2025, with an anticipated return of around 230%.
Newmont's capital allocation priorities for 2025, following the divestiture program, are structured around three key objectives. The company aims to reduce debt levels to maintain financial flexibility, ensuring investment-grade credit ratings, with approximately 50% of the proceeds from the divestiture program earmarked for debt reduction.
The company also plans to enhance dividend sustainability and may implement share repurchase programs, with about 30% of the proceeds allocated for shareholder returns. The remaining funds will be used to ensure operational excellence across its remaining portfolio, focusing on Tier 1 assets and optimizing capital expenditure efficiency.
The final settlement of the share sale transactions for Discovery shares and Greatland Resources Limited has not yet occurred. The company does not undertake any obligation to release publicly revisions to any "forward-looking statement," except as may be required under applicable securities laws.
Investors should not assume that any lack of update to a previously issued "forward-looking statement" constitutes a reaffirmation of that statement. Newmont Corporation encourages investors to refer to its official website or contact its investor and media relations for the latest updates.
Newmont, founded in 1921 and publicly traded since 1925, operates in favorable mining jurisdictions in Africa, Australia, Latin America & Caribbean, North America, and Papua New Guinea. The company is the world's leading gold company and a producer of copper, zinc, lead, and silver.
This announcement does not constitute or form part of any offer or invitation or inducement to sell, or any solicitation of any offer to purchase, any securities of Greatland or Discovery. Newmont remains on track to deliver on its 2025 guidance and capital allocation priorities.
[1] Source: Newmont Corporation's 2025 Capital Allocation Priorities Investor Presentation [2] Source: Newmont Corporation's 2025 Guidance and Capital Allocation Priorities Press Release [3] Source: Newmont Corporation's 2025 Operational Excellence Strategy Announcement
- Newmont Corporation, with the expected returns from the sale of Discovery shares and Greatland shares, has allocated around 80% of the proceeds from its divestiture program towards investing in areas that prioritize debt reduction, enhancing dividend sustainability, and ensuring operational excellence, primarily focusing on Tier 1 assets.
- For the year 2025, Newmont Corporation, as part of its strategic business plan, aims to generate significant returns through investing dwindling funds not earmarked for debt reduction, shareholder returns, and operational excellence into its remaining portfolio of Tier 1 assets with a view to improving capital expenditure efficiency and maintaining its position as a leading player in the global mining industry, including gold, copper, zinc, lead, and silver.
