Newmont to sell Éléonore mine to Dhilmar for $795m in strategic portfolio reshuffle

Newmont Corporation has unveiled plans to sell its Éléonore gold mine in Northern Quebec, Canada, to the newly established UK-based private mining firm Dhilmar Ltd. The deal, valued at $795 million in cash, is part of Newmont’s ongoing efforts to streamline its operations and optimise its portfolio. The transaction is expected to close in the first quarter of 2025, subject to regulatory approvals and customary conditions.

This divestiture marks another milestone in Newmont’s broader strategy to concentrate on Tier 1 gold and copper assets, which promise long-term profitability and significant cash flow generation. Upon completion of this and other announced transactions, Newmont will have realised approximately $3.6 billion in gross proceeds from asset sales, far surpassing its original target.

Exceeding divestiture targets with strategic sales

Tom Palmer, President and Chief Executive Officer of Newmont Corporation, emphasised that the sale aligns with the company’s commitment to strategic portfolio management. Speaking on the achievement, Palmer explained that Newmont had initially set a goal to generate $2 billion in cash from the sale of non-core assets following its acquisition of Newcrest Mining Limited in 2023. By exceeding this target by more than $1.5 billion, the company has demonstrated robust execution of its optimisation plans.

Palmer noted that the proceeds would contribute to strengthening Newmont’s investment-grade balance sheet and support shareholder returns. He praised Dhilmar Ltd, describing the buyer as experienced and well-positioned to manage the Éléonore mine responsibly.

Dhilmar’s expertise and vision

Dhilmar Ltd, under the leadership of Chief Executive Officer Alexander Ramlie, is poised to take over operations at Éléonore. The company’s management team brings decades of experience across mining projects, including Ramlie’s successful leadership in acquiring and managing the Batu Hijau copper and gold mine in Indonesia. Under his stewardship, Batu Hijau’s investment value soared, and the operation maintained strong environmental and social performance metrics, underscoring Dhilmar’s commitment to sustainable mining practices.

Dhilmar has stated that the Éléonore mine aligns with its goals of acquiring high-quality assets with growth potential and a strong operational track record.

Newmont’s divestiture program

The Éléonore sale is part of Newmont’s divestiture initiative announced in February 2024, which aims to offload non-core assets across its Australian, Ghanaian, and North American portfolios. With agreements in place for four operations and one project, Newmont is on track to finalise the sale of all targeted assets by early 2025.

As of now, the total proceeds from these transactions are expected to reach $3.6 billion, comprising $3.1 billion from asset sales and $527 million from investment monetisations. Notable transactions include the sale of the Telfer operation and the Havieron project, the Akyem operation, and the Musselwhite mine, among others.

Financial and legal backing

For the Éléonore transaction, Newmont engaged BMO Capital Markets as its financial adviser, while Goodmans LLP provided legal counsel.

Newmont’s latest divestiture underscores its dedication to refining its asset portfolio while maintaining a focus on operational excellence and shareholder value. The Éléonore mine sale to Dhilmar Ltd not only reflects a strategic reshuffle but also highlights the increasing importance of sustainability and expertise in mining operations.