NEM's Divestments Drive Tier-1 Focus: Will Streamlining Unlock Value?
Newmont Corporation NEM has taken bold steps in reshaping its portfolio, aggressively shedding non-core assets to sharpen its focus on Tier-1 operations amid cost pressures. NEM completed its non-core divestiture program in April 2025 with the sale of its Akyem operation in Ghana and its Porcupine operation in Canada, generating total after-tax cash proceeds of roughly $850 million before closing adjustments. Total gross proceeds from disclosed divestitures are expected to reach $4.3 billion, including $3.8 billion from non-core divestitures and $527 million from the sale of other investments.
The asset streamlining is rooted in Newmont's objective to concentrate capital on high-return, long-life assets that underpin its competitive edge and long-term sustainability. The exit of non-core operations has not only allowed Newmont to simplify its operating footprint but also bolster its balance sheet. The divestments have contributed to a $1 billion reduction in gross debt and helped deliver a record first-quarter free cash flow of $1.2 billion.
These moves free up capital for investment in its key growth projects, including Tanami Expansion 2 in Australia, the Ahafo North expansion in Ghana, and Cadia Panel Caves in Australia that are expected to expand production capacity and extend mine life. However, this strategy also exposes the company to execution risk if Tier-1 ramp-ups are delayed, which may impact its production goals for 2025.
Looking across the competitive landscape, Barrick Mining Corporation B also divested or exited several non-core assets to focus on Tier 1 assets. These divestments include Kalgoorlie Consolidated Gold Mines (KCGM) in Australia, the Massawa project in Senegal and Lagunas Norte in Peru, which Barrick completed in 2019, 2020 and 2021, respectively. Earlier this month, Barrick also completed the sale of its 50% interest in the Donlin Gold Project in Alaska.
Kinross Gold Corporation KGC also streamlined its portfolio through the sale of its Russian assets, including the Kupol mine and Udinsk project, in 2022. Kinross also sold its 90% interest in the Chirano mine in Ghana in 2022. With these divestments, Kinross' rebalanced portfolio now has a strong production profile anchored by Tasiast and Paracatu, its two biggest assets.
The Zacks Rundown for NEM
Shares of Newmont have shot up 59.8% year to date against the Zacks Mining – Gold industry's rise of 54.4%, largely driven by the gold price rally.
From a valuation standpoint, NEM is currently trading at a forward 12-month earnings multiple of 13.46, a roughly 3.6% discount to the industry average of 13.96X. It carries a Value Score of B.
The Zacks Consensus Estimate for NEM's 2025 and 2026 earnings implies a year-over-year rise of 20.1% and 11.7%, respectively. The EPS estimates for 2025 and 2026 have been trending higher over the past 60 days.
NEM stock currently carries a Zacks Rank #1 (Strong Buy).
You can see the complete list of today's Zacks #1 Rank stocks here.
Zacks Names #1 Semiconductor Stock
It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.
With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.
See This Stock Now for Free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Newmont Corporation (NEM): Free Stock Analysis Report
Kinross Gold Corporation (KGC): Free Stock Analysis Report
Barrick Mining Corporation (B): Free Stock Analysis Report
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
National Post
14 minutes ago
- National Post
CUPE National President Mark Hancock to Join WSIB Picket Line in Ottawa
Article content OTTAWA, Ontario — Mark Hancock, National President of the Canadian Union of Public Employees (CUPE), will join striking Workplace Safety and Insurance Board (WSIB) workers on the picket line outside 1580 Merivale Road, Unit 500 in Ottawa on Thursday, June 26, between 12:00 and 1:00 p.m. ET. Article content Hancock's visit comes as more than 3,600 WSIB frontline staff continue a province-wide strike that has now stretched beyond two months — the first strike in the organization's 110-year history. Article content Article content The picket will take place in front of the constituency office of Ottawa West–Nepean MPP Chandra Pasma, as part of a broader effort to raise public and political awareness of the urgent need for leadership from WSIB decision-makers. Article content Where: Article content Time Article content Between 12:00 and 1:00 p.m. Article content 'We're grateful to have CUPE National President Mark Hancock join us in Ottawa,' said Harry Goslin, President of the Ontario Compensation Employees Union (OCEU/CUPE 1750). 'His support sends a powerful message — this deal should have been done weeks ago, and the delay lies squarely with WSIB leadership. What's missing is the mandate from the CEO and Board to bring this strike to a fair conclusion.' Article content Despite good-faith efforts and ongoing mediated talks, WSIB has refused to table a final offer. The union's bargaining team remains ready to reach a fair settlement — 24 hours a day, seven days a week. Article content 'We're calling on the WSIB to pull out all the stops and get this done before Canada Day,' said Goslin. 'It's time to finish the deal — and restore stability for injured workers across Ontario.' Article content Article content Article content Article content Article content Contacts Article content For more information, please contact: Article content Article content Article content Article content
CTV News
36 minutes ago
- CTV News
CTV National News: The economic impact of wildfires in Canada
Watch Damage and length of evacuations are two factors considered in new Statistics Canada data looking into the economic impact of wildfires. Allison Bamford has more.
Globe and Mail
an hour ago
- Globe and Mail
Silver Elephant Closes First Tranche of Non-Brokered Private Placement raising Gross Proceeds of $172,000
Vancouver, British Columbia--(Newsfile Corp. - June 25, 2025) - Silver Elephant Mining Corp. (TSX: ELEF) (OTCQB: SILEF) (FSE: 1P2) ("Silver Elephant" or the " Company") announces that, further to its news releases dated June 11, 2025, it has closed the first tranche of its non-brokered private placement (the "Private Placement") raising gross proceeds of $172,000 through the sale of 860,000 units (the "Units") at a price of $0.20 per unit. Each Unit consists of one common share of the Company (a "Share") and one share purchase warrant (a "Warrant") with each warrant entitling the holder to purchase one additional Share at a price of $0.30 per Share for a period of three years from issuance. Finder's Fees of 33,250 Finder's Units were paid with each Finder's Unit consisting of one Share and one Warrant. John Lee, a Director of the Company subscribed for 150,000 Units for gross proceeds of $30,000 and Ron Motz, a shareholder holding more than 10% of the Company's common shares, subscribed for 200,000 Units for gross proceeds of $40,000. The issuance of Units to Mr. Lee and Mr. Motz are considered related party transactions within the meaning of Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions ("MI 61-101"). The Company relied on exemptions from the formal valuation and minority shareholder approval requirements provided under sections 5.5(a) and 5.7(a) of MI 61-101 on the basis that Mr. Lee's and Mr. Motz's participation in the Private Placement did not exceed 25% of the fair market value of the Company's market capitalization. The Company will file a material change report in respect of the related party transaction. The securities issued under the Private Placement will be subject to a regulatory hold period of four months plus one day from the date of issue. Proceeds of the Private Placement are expected to be used for general corporate purposes. This news release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the Units in any jurisdiction in which such offer, solicitation, or sale would be unlawful prior to the registration or qualification under the securities laws of that jurisdiction. About Silver Elephant Mining Corp. Silver Elephant is a mineral exploration company with gold and silver projects in Bolivia. Further information on Silver Elephant can be found at SILVER ELEPHANT MINING CORP. ON BEHALF OF THE BOARD "John Lee" CEO and Executive Chairman For more information about Silver Elephant, please contact Investor Relations: +1.604.569.3661 info@ FORWARD-LOOKING INFORMATION This news release contains "forward-looking information" and "forward-looking statements" (collectively, "forward-looking information") within the meaning of applicable securities laws. Forward-looking information is generally identifiable by use of the words "believes," "may," "plans," "will," "anticipates," "intends," "could", "estimates", "expects", "forecasts", "projects" and similar expressions, and the negative of such expressions. Such forward-looking information, which reflects management's expectations regarding Silver Elephant's future growth, results of operations, performance, business prospects and opportunities, is based on certain factors and assumptions and involves known and unknown risks and uncertainties which may cause the actual results, performance, or achievements to be materially different from future results, performance, or achievements expressed or implied by such forward-looking information. Forward-looking information in this news release includes the use of proceeds raised from the Private Placement. Forward-looking statements involve significant risks and uncertainties, and should not be read as guarantees of future performance, events or results, and may not be indicative of whether such events or results will actually be achieved. A number of risks and other factors could cause actual results to differ materially from expected results discussed in the forward-looking statements, including but not limited to: market conditions; changes in business plans; ability to secure sufficient financing to advance the Company's mining projects; and general economic conditions. Additional risk factors about the Company are set out in its latest annual and interim management's discussion and analysis and annual information form available under the Company's profile on SEDAR at
