Gold miner Newmont Corp (TSX: NGT) has dismissed nearly a dozen managers including one executive as part of a corporate restructuring, which follows its $15 billion acquisition of Newcrest Mining late last year, according to people familiar with the matter.
The company plans to consolidate its five business units into three, eliminating standalone divisions overseeing Australian and African operations by combining them with North American and East Asian units, said the sources, who requested anonymity to discuss internal matters.
The reorganization comes after disappointing third-quarter earnings in October revealed struggles to control costs at mines in Australia, Canada, Peru, and Papua New Guinea, despite surging gold prices. Top investors criticized Chief Executive Tom Palmer in private discussions following the earnings report, one source said.
Newmont acquired Newcrest in 2023, bringing major gold and copper mines into its portfolio. The company has been divesting smaller operations in Australia, Canada, and Ghana as part of the integration.
“Following the Newcrest acquisition and progress with our key divestments, we are continuing to execute our strategy focused on a portfolio of Tier 1 assets and projects,” a Newmont spokesperson wrote in an email to Bloomberg. “An integral part of this strategy is to ensure that we have an organization that is fit-for-purpose from operational, functional, and cost perspectives, and our business is well positioned for long-term success.”
Information for this story was found via Bloomberg, and the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
One Response
My investment in Newmont is by far not the most successful.
It doesn`t make a big difference if there are 5 or 3 divisions. In such management games some managers get more power others loose some power and positions. Usually only a few managers are made redundant.
The perhaps biggest challenge is the woke management that follows ESG targets that deflects from the main objective to earn money.
The second worst thing is to buy huge miners with a high market capitalization as Goldcorp and Newcrest with a premium rather than buying smaller company`s with low market capitalization but promising gold reserves.