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The exits of Newmont and Agnico have stripped Orla of two major backers in the span of a month, sending shares lower.
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Orla Mining (TSX:OLA,NYSEAMERICAN:ORLA) was hit with a second major exit this month as Newmont (TSX:NGT,NYSE:NEM,ASX:NEM) sold its entire 13.3 percent stake for US$439 million.
The news sent Orla's shares tumbling nearly 8 percent on Friday (September 19).
Denver-based Newmont said it sold the shares through the Toronto Stock Exchange at US$10.14 (C$14) each. The move leaves Newmont with no remaining stake in the company.
CEO Tom Palmer called the sale part of a broader strategy to sharpen focus and free up capital.
“Today’s announcement demonstrates Newmont’s ongoing commitment to streamlining our equity portfolio and unlocks significant cash to support Newmont’s capital allocation priorities,” he said.
Orla shares fell 7.7 percent on Friday to US$10.21, leaving its market capitalization at about US$2.41 billion.
The drop followed a similar selloff earlier in September, when major miner Agnico Eagle Mines (TSX:AEM,NYSE:AEM) announced it had offloaded its 11.3 percent stake in Orla for US$560.5 million.
By contrast, investors rewarded Newmont for the divestment. Its shares rose 3 percent in New York following the announcement, lifting the company’s market capitalization to US$88.6 billion.
The exit from Orla is the latest in a string of divestments by Newmont, which has been streamlining its portfolio since November 2024. The program has included the sale of the Musselwhite mine in Ontario to Orla for US$850 million.
Just this week, Newmont agreed to sell the Coffee gold project in Yukon to Fuerte Metals (TSXV:FMT,OTCQB:FUEMF) for up to US$150 million. The company has also applied to voluntarily delist from the Toronto Stock Exchange.
Despite the divestments, Newmont continues to operate significant Canadian assets, including the Brucejack gold mine and Red Chris gold-copper mine, both of which are located in BC.
For Orla, the departure of Newmont and Agnico adds pressure to demonstrate its ability to sustain growth with a broader investor base. The company currently operates two producing assets — the Camino Rojo oxide mine in Mexico and Musselwhite in Ontario — and has forecast consolidated 2025 gold output of 265,000 to 285,000 ounces.
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Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.
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Giann Liguid is a graduate of Ateneo De Manila University with an AB in Interdisciplinary Studies. With a diverse writing background, Giann has written content for the security, food and business industries. He also has expertise in both the public and private sectors, having worked in the government specializing in local government units and administrative dynamics.
When he is not chasing the next market headline, Giann can most likely be found thrift shopping for his dogs.
When he is not chasing the next market headline, Giann can most likely be found thrift shopping for his dogs.
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Giann Liguid is a graduate of Ateneo De Manila University with an AB in Interdisciplinary Studies. With a diverse writing background, Giann has written content for the security, food and business industries. He also has expertise in both the public and private sectors, having worked in the government specializing in local government units and administrative dynamics.
When he is not chasing the next market headline, Giann can most likely be found thrift shopping for his dogs.
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