Newmont revamps structure, cuts management roles

Newmont Corp., the world's leading gold mining company, has initiated a significant restructuring process that includes the dismissal of an executive and nearly a dozen senior managers, according to a report from Bloomberg, citing sources. This decision is part of a broader corporate overhaul aimed at streamlining operations and consolidating its business units.

The company is set to merge five of its units into three, eliminating independent divisions that manage operations in Australia and Africa. These will now be grouped with the units responsible for North America and East Asia. The restructuring comes as Newmont seeks to improve its cost management and operational efficiency following a disappointing earnings report in late October, which indicated challenges in controlling costs despite rising gold prices.

The reorganization also follows Newmont's acquisition of Newcrest Mining Ltd (OTC:NCMGF ). earlier in 2023, a $15 billion deal that expanded the company's portfolio with significant gold and copper mines and led to the divestment of smaller assets in Australia, Canada, and Ghana. A Newmont spokesperson stated that the changes are part of executing a strategy that prioritizes a portfolio of Tier 1 assets and projects, aiming to create an organization that is "fit-for-purpose" and well-positioned for long-term success.

Despite a roughly 30% increase in gold prices this year, buoyed by US interest-rate cuts and central bank purchases, Newmont's shares have only seen a marginal rise. The company's efforts to restructure and refocus its operations are a direct response to the need to better leverage the current market conditions and deliver value to its investors.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Source: Investing.com