Newmont Sells Eleonore Mine To Private UK-Based Firm For $795 Million
Newmont Corp (TSX: NGT) has entered into an arrangement to sell off another gold asset as it continues to drop assets following its purchase of Newcrest Mining last year. The latest asset to be disposed of is the Eleonore operation in Northern Quebec.
The asset, which last quarter produced 54,000 ounces of gold at an all-in sustaining cost of $1,924 an ounce, has been sold to Dhilmar Ltd, which is a newly incorporated, UK-based private company. The asset has been sold for $795 million in cash, with the sale slated to close in the first quarter of 2025.
Dhilmar is led by Alexander Ramlie, who in 2016 acquired the Batu Hijau copper and gold mine in Indonesia from Newmont under PT Amman Mineral Internasional Tbk. Ramlie is said to be supported by board members with experience across a range of commodities in both open pit and underground operations.
READ: Orla Mining To Purchase Musselwhite Gold Mine For $810 Million In Cash
With the sale of Eleonore, total proceeds from transactions announced in 2024 are expected to be up to $3.6 billion, including $3.1 billion from non-core divestures. The transaction also follows the sale of Musselwhite to Orla Mining, which was announced by Newmont last week.
“Today’s announcement is another step forward in Newmont’s journey to create a go-forward portfolio of Tier 1 gold and copper assets, each with the scale and mine life to generate strong free cash flows for several decades. [..] Proceeds from this transaction will support Newmont’s comprehensive approach to capital allocation, which includes strengthening our investment-grade balance sheet and returning capital to shareholders,” commented Newmont CEO Tom Palmer on the sale.
Newmont last traded at $60.60 on the TSX.
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