New Owners of Former Newmont Ops Deliver Strong Early Results
How are the major’s former mines going under new ownership?
Newmont Corporation’s (NYSE: NEM) mine divestment process is done and dusted, transforming the profiles of the operations’ new owners.
The sale of six non-core mines generated up to US$4.3 billion in total gross proceeds, including over US$2.5 billion of after-tax cash proceeds in the current half.
The divestments of the Akyem operation in Ghana to Zijin Mining (SH: 601899) and its Porcupine operation in Canada to Discovery Silver (TSX: DSV) weren’t completed until mid-April but the buyers of three of the other mines have now had a quarter or part of a quarter to bed down operations.
Greatland Gold (LSE: GGP)
Greatland has undergone the biggest transformation, going from explorer and passive project partner to a major producer in its own right. Its shares have doubled so far this year.
The first of Newmont’s divestments, Greatland acquired 100% of the Telfer mine and the 70% stake in the Havieron project it didn’t already own, both in Western Australia, for US$475 million in December.
Telfer produced 90,172 ounces of gold and 3511 tonnes of copper in the March quarter at all-in sustaining costs of A$2126/oz of gold, with gold production 21% higher, and AISC lower, than Greatland’s target.
The company generated free cashflow of A$253 million, boosting its quarter-end cash balance to A$398 million.
Guidance for December to June 30 is 196,000-210,000oz at AISC of A$2100-2250/oz.
Greatland expects to produce 300,000-340,000oz of gold and 9000-13,000t of copper at AISC of A$2400-2600/oz in the 2026 financial year and 260,000-300,000oz of gold and 5000-9000t of copper at AISC of A$2750-2950/oz in FY27, stretching the mine life by 18 months longer than originally envisaged.
The company expects the Havieron project, 45km from Telfer, to start production in FY28 through the Telfer plant.
Perth-based Greatland is expecting to list on the ASX next month.
Orla Mining (TSX: OLA)
On February 28, Orla completed the acquisition of the Musselwhite mine in Ontario for US$810 million cash, funded from debt, gold prepayment, new convertible notes, and cash on hand.
Musselwhite produced 17,786oz of gold in March, its first month under Orla’s ownership.
On Monday, Orla announced 2025 guidance for Musselwhite of 170,000-180,000oz at AISC (from April to December) of US$1550-1750/oz.
When combined with the Camino Rojo mine in Mexico, group production for 2025 is 280,000-300,000oz at AISC of US$1300-1500/oz.
Orla is committing US$25 million to exploration at Musselwhite, which chief financial officer Etienne Morin telling last month’s Mining Forum Europe it would likely be the largest program that Musselwhite had seen in recent years.
The program is aiming to replace and expand reserves and resources, test the open down-plunge extension of the mine trend from surface and test priority near-mine targets to identify potential new mill feed material.
“If we can add another 6-7 years of mine life, it gives us critical mass to think about further capital investments to optimise the mine, even expand the mine as well,” Morin said.
SSR Mining (TSX: SSRM)
SSR produced a total of 103,805oz of gold equivalent at AISC of US$1972/oz in the March quarter.
The figure included 11,282oz of gold at AISC of US$1774/oz, representing a month of contribution from the newly acquired Cripple Creek & Victor mine in Colorado.
The company said the integration had been seamless and the first month of production was in line with its expectations.
SSR paid US$100 million cash for the mine, with up to US$175 million of milestone-based payment due in the future if and when certain permits are granted.
The mine produced a total of 39,282oz of gold in the March quarter.
SSR has set 2025 guidance from February 28 to December 31 at 90,000-110,000oz of gold at AISC of US$1800-1840/oz.
SSR has started work on a new technical report and updated life of mine plan for Cripple Creek & Victor, which it is hoping to publish in the September quarter.
Group guidance for 2025 is 410,000-480,000oz of gold equivalent at AISC of US$2090-2150/oz.