Gold producer Newmont Corporation (NYSE:NEM) sold its Éléonore mine in Quebec Tuesday to London-based Dhilmar for $795 million in cash.
The sale follows Newmont's strategy to divest non-core assets following its milestone acquisition of Newcrest Mining in 2023.
"When we announced the acquisition of Newcrest, we committed to generating at least $2 billion in cash through portfolio optimization. With this announced sale, we have exceeded that target by more than $1.5 billion," said Newmont CEO Tom Palmer. With this transaction, asset sales generated around $3.6 billion year-to-date.
Located in the Eeyou Istchee/James Bay region of Quebec, Éléonore is a notable underground gold mine producing approximately 215,000 ounces annually. Operational since 2014, the mine's location in an attractive jurisdiction makes it a quality addition to Dhilmar's portfolio.
Still, Newmont is set to focus on Tier 1 assets —mines with long lives, substantial reserves, and strong cash flow potential. To prioritize these operations and expand margins, the company sold several assets, including Akyem in Ghana (for $1 billion) and Musselwhite in Canada (for $850 million).
While Newmont bolstered its reserves through a timely acquisition, its main rival, Barrick Gold (NYSE:GOLD), has focused on organic growth. Its recent update of resource estimates for its Fourmile project showed 1.4 million ounces of indicated resources and 6.4 million ounces of inferred resources, with gold grades as high as 14.1 g/t.
"Fourmile is a truly world-class asset, comparable to Barrick's foundational Goldstrike deposit," said Mark Bristow, Barrick's CEO. Like Newmont, Barrick prefers resource expansion within top jurisdictions despite Bristow's legendary ability to navigate political issues in emerging markets.
The divergence in strategy showcases each company's adaptation to industry challenges. Reducing exposure to non-core assets for Newmont supports balance sheet resilience and shareholder returns. Barrick, however, focuses on leveraging existing assets like Fourmile and the $1 billion Goldrush project, which aims for commercial production by 2026.
Despite a recent pullback, gold remains one of the year’s best-performing assets, rising 27.5%. However, both Newmont and Barrick came nowhere near such gains, with the former gaining 3.79% and later dropping 1.12% year-to-date.
Looking ahead, Barrick plans a pre-feasibility study for Fourmile in 2025 and is advancing the Reko Diq copper-gold project in Pakistan. Meanwhile, Newmont continues to refine its portfolio, aiming to fortify its position in key markets and invest in high-margin assets.
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