Authored by GoldFix ZH Edit

Newmont, the world’s largest gold producer, has applied for a voluntary delisting of its common shares from the Toronto Stock Exchange citing low trading volumes. The company said the move, expected to take effect at the close of trading on September 24, is aimed at improving administrative efficiency and reducing costs.

Bloomberg previously reported that Newmont is targeting cost reductions of $300 per ounce, a goal that may result in significant workforce cuts. Following its $17.14 billion acquisition of Newcrest last year, the miner announced plans to divest non-core assets, reduce debt, and streamline operations.

Miners: The US Protectionism Play

Abroad, American miners continue to face nationalization, confiscation, and regulatory burdens. At home, U.S. policy is evolving into a framework of protection and direct involvement. Together, these trends redefine the risk and return profile of mining companies. They are no longer only participants in commodity markets but also instruments of state policy. The structural conclusion is that miners now stand at the intersection of market forces and national security priorities. They are subject to international pressures that reduce productivity but are increasingly supported by domestic policies that secure their role in supply and defense. The combination creates a new landscape for the sector, one in which nationalization is both a risk abroad and a form of protection at home.

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From a strictly economic perspective, selling Canadian mines is consistent with Newmont’s cost-cutting mandate. These assets are often mature, have higher all-in sustaining costs (AISC), and require ongoing capital investment. It is difficult to be a lower cost producer operating in Canada for Gold, just as it is for Oil. Newmont is serious about unlocking shareholder value by increasing the bottom line (as opposed to simply revenues) right now

Since November 2024, Mining.com notes all of its announced divestments have been in Canada, including the Eleonore mine in Quebec sold for $795 million, the Musselwhite mine in Ontario sold for $850 million, and its stake in the Porcupine operations in Ontario sold for $425 million.

The fact that all divestments so far have been in Canada suggests proper focus on cost reduction is being executed. Canada is a high-cost jurisdiction:

Labor: Mining wages and unionization levels are higher relative to other regions.

Energy: Power costs in remote areas (Quebec, Ontario) are substantial. Regulation: Environmental and permitting standards in Canada are strict and expensive to comply with compared with some jurisdictions in Latin America or Africa.

The company still operates the Brucejack and Red Chris mines in British Columbia, though its “Canadian footprint” has notably shrunk. Newmont also announced a $3 billion share repurchase program in July alongside its second-quarter results.

BRUCEJACK MINE Despite the delisting in Toronto, Newmont confirmed it will maintain its primary listing on the New York Stock Exchange and continue supporting listings on the Australian Securities Exchange and the Papua New Guinea Stock Exchange.

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