Gold major Newmont has completed its previously announced noncore divestiture programme, closing the sales of its Akyem mine in Ghana and Porcupine operation in Canada.

The company has now divested all six noncore assets outlined in its February 2024 portfolio rationalisation initiative. So far this year, Newmont has received more than $2.5-billion in cash proceeds.

Newmont president and CEO Tom Palmer said the sale of Akyem and Porcupine generated total after-tax cash proceeds of about $850-million before closing adjustments. 

"With the cash proceeds received this year, we remain committed to continuing to strengthen our balance sheet and return capital to shareholders through ongoing share repurchases," he said.

Newmont’s total gross proceeds from announced divestitures are expected to reach up to $4.3-billion, comprising $3.8-billion from noncore asset sales and $527-million from other investment disposals.

As part of the Porcupine transaction, Newmont received 119.7-million shares in Discovery Silver, representing about 15% of the company’s issued and outstanding shares. The shares are held through Newmont’s wholly owned subsidiary, Goldcorp.

Discovery CEO Tony Makuch said in a separate statement on Wednesday the company aimed to re-establish Porcupine as a Tier 1 asset in the global gold industry.

He stated that the the newly acquired Porcupine portfolio presented significant opportunities to increase output, improve margins and extend mine life.

“Our recently released technical report estimated average annual production of over 285 000 oz of gold for the next 10 years, with total production extending to 2046. We expect to improve on the estimates in the report by investing in the assets to grow production, extend mine life and lower costs at existing operations,” said Makuch.

Meanwhile, Zijin Mining, which bought the Akyem mine from Newmont, said the mine’s favourable mineralisation conditions and potential for reserve expansion would boost production.