Newmont (TSX:NGT,NYSE:NEM,ASX:NEM) is preparing to withdraw from the TSX, the latest in a string of moves to streamline operations and rein in costs following its US$15 billion takeover of Newcrest Mining in 2023.
The Denver-based miner said on Wednesday (September 10) that it has applied for a voluntary delisting of its common shares from the TSX, effective at the close of trading on September 24.
The company cited “low trading volumes” on the Canadian exchange, and said the decision is expected to “improve administrative efficiency and reduce costs for the benefit of Newmont’s shareholders.”
Newmont’s shares will continue to trade on the NYSE, where it maintains its primary listing, as well as on the ASX and the Papua New Guinea Stock Exchange under the ticker symbol NEM.
Rising costs and restructuring plans
Newmont’s all-in sustaining costs reached record levels earlier this year, eroding profits even as bullion prices hit all-time highs above US$3,500 per ounce in April and remained above US$3,300 through most of the summer.
The company has acknowledged that its cost base has outpaced peers.
In the second quarter, Newmont’s costs were nearly 25 percent higher than those of Agnico Eagle Mines (TSX:AEM,NYSE:AEM), a Canadian rival considered one of the industry’s leanest producers.
Newmont’s costs have risen more than 50 percent over the past five years, driven by higher energy, labor and material prices, as well as integration expenses tied to Newcrest’s operations.
CEO Tom Palmer told investors in July that Newmont was pursuing additional measures to lower its expenses.
Behind the scenes, Newmont has been preparing for more aggressive measures.
People familiar with the matter told Bloomberg News that management has set an internal target to lower costs by as much as US$300 per ounce, or roughly 20 percent. Meeting that benchmark could require thousands of layoffs across the company’s global workforce of about 22,000, excluding contractors.
While Newmont has not disclosed the scope of planned reductions, some employees have already been informed of redundancies, according to the report. Managers have also been briefed on potential curbs to long-term incentive programs as part of a broader restructuring. A company spokesperson confirmed earlier this year that Newmont launched a cost and productivity improvement program in February.
Alongside cost cutting, Newmont has moved to divest non-core assets acquired in the Newcrest deal.
Since late 2024, the company has sold multiple Canadian operations: the Eleonore mine for about US$795 million, the Musselwhite mine in Ontario for US$850 million and its stake in the Porcupine operations for US$425 million.
The asset sales are intended not only to cut debt at the company, but also to sharpen its focus on higher-margin operations, particularly in North America and Australia.
Despite higher costs, Newmont shares have surged 95 percent this year; the company also announced a US$3 billion share repurchase program in July.
Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.
