Tuesday 29th Sep, 2020

Newmont Mining acquires Goldcorp for $13.9B

Newmont Mining has acquired Goldcorp for $US10 billion ($13.9 billion) in a deal which will form one of the largest gold producers in the world.

The stock-for stock agreement will combine the two corporations into Newmont Goldcorp, which will own a global portfolio of operations, projects, exploration opportunities and reserves.

Newmont expects to acquire each Goldcorp share for 0/3280 of each of its stock, valuing the target at $US10 billion.

The US-based Newmont owns half of the Kalgoorlie Super Pit, the Boddington gold mine in WA, and the Tanami operation in the NT. It also owns producing operations in Africa and the Americas.

Goldcorp, based in Canada, focuses on the Americas with producing assets in Canada, Argentina and Mexico.

The companies plan to combine these mines to target steady production of 6-7 million ounces of gold over the coming decades.

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Newmont Goldcorp’s management team will be appointed on a best talent basis, with Gary Goldberg appointed as Chief Executive Officer and Tom Palmer as President and Chief Operating Officer.

Goldberg said the combination would create the world’s leading gold business with the best assets, people, prospects and value creation opportunities.

“We have a proven strategy and disciplined implementation plan to realise the full value of the combination, including an exceptional pool of talented mining professionals, stable and profitable gold production of 6-7 million ounces over a decades-long time horizon, the sector’s largest gold reserve and resource base, and a leading project and exploration pipeline,” Goldberg said.

“Our cultures are well aligned, with strong commitments to zero harm, inclusion and diversity, and industry-leading environmental, social and governance performance.”

The group would have the largest reserves and resources in the global gold industry, according to the companies.

Newmont Goldcorp is planned to be based in Denver, Colorado with regional offices in Perth (WA), Vancouver (Canada), Miami (US) and Accra (Ghana).

The deal is expected to close in the second quarter of 2019 once all approvals have been secured.