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Newmont Divests Orla Stake for $439M, Streamlines Portfolio
ZACKSยท 2025-09-22 14:00
Core Insights - Newmont Corporation has completed the sale of 43 million common shares in Orla Mining Ltd, generating gross proceeds of $439 million at an average price of $10.14 per share [1][8] - The divestment is part of Newmont's strategy to streamline its equity portfolio and strengthen its balance sheet to support capital allocation plans [2][4] - Despite the divestment, Newmont remains confident in Orla's potential to generate shareholder value and execute its growth strategy [3] Financial Impact - Prior to the sale, Newmont held approximately 13.3% of Orla's outstanding common shares on a non-diluted basis [1] - The recent sale of the Coffee Project in Yukon to Fuerte Metals Corporation for up to $150 million is expected to enhance Newmont's liquidity [4][8] - Newmont's shares have increased by 48.4% over the past year, compared to the industry's rise of 77.6% [6] Strategic Focus - Newmont is actively divesting non-core assets to focus on its primary operations and improve capital allocation [2][4] - The relationship between Newmont and Orla has been significant, with Newmont's support contributing to Orla's development and growth [2]