AXMIN Inc (TSXV: AXM)
AXMIN Inc. (TSXV:AXM) is a Canadian-based exploration and development company with a strong focus on central and West Africa.
The CEO of Newmont Corporation（TSX:NGT）（NYSE:NEM）, the world’s largest gold producer based in the United States, Tom Palmer, stated on Tuesday that the company has integrated top-tier assets, divested non-core assets, and raised $2 billion in cash, while its stock price has dropped to the lowest level seen in a generation.
The term “top-tier assets” refers to the largest and most scarce gold mines globally.
Newmont’s current goal is to transform into a gold miner with only top-tier assets, through the announced plan to sell six mines and two additional projects, for which potential buyers have already expressed acquisition intentions. The assets to be divested include three gold mines in Canada (Éléonore, Musselwhite, and Porcupine), Cripple Creek & Victor in the United States, as well as one gold mine each in Ghana and Australia, along with two non-core projects – Havieron in Australia and Coffee Gold in Canada.
Palmer mentioned that the company holds six high-quality tier-two assets, three of which are located in the Canadian provinces of Ontario and Quebec, with the hope that these assets will ultimately fall into Canadian hands.
Through these actions, Newmont will possess 10 top-tier gold mines, accounting for over half of the existing top-tier gold mines globally.
A portion of the cash from the asset sales will be used to repay Newmont’s debts, with the company planning to reduce debt by at least $1 billion from its current debt level of $9 billion.
In addition to debt repayment, the proceeds from the asset sales will also be used for stock repurchases, as the company has already approved a stock buyback plan.
From 2018 to 2022, Newmont’s stock outperformed the VanEck Vectors Gold Miners ETF (TSX:GDX) benchmark and Canadian gold company Barrick Gold (TSX:ABX) (NYSE:GOLD), but later fell back to roughly match industry levels.
Some analysts attribute this to Newmont’s large-scale acquisitions, as acquiring companies brings not only their assets, but also their issues and liabilities, which can bring new risks to the acquiring company. In 2019, Newmont merged with Goldcorp, and at the end of 2023, the company acquired Australian miner Newcrest Mining for approximately $15 billion.
