Newmont’s New CEO Plans to Dispense More Discipline Than Cash – by Vinicy Chan and Steven Frank (Bloomberg News – October 2, 2019)

(Bloomberg) — Tom Palmer took the helm at the world’s largest gold miner shortly after bullion had its longest streak of quarterly gains since 2011. Now investors are looking to partake of that windfall.

But before shareholders get their piece of the pie, the new chief executive officer at Newmont Goldcorp Corp. will have to face the challenge of melding the assets from the recently completed mega-merger with Goldcorp Inc.

Newmont’s shares have trailed its peers, even with gold’s meteoric rise that took the metal to a six-year high of $1,557.11 an ounce last month. The stock’s rally this year is just less than a third of the pace of gains posted by its closest rival Barrick Gold Corp., which also sealed a massive merger deal.

“Tom has to bring in the Goldcorp assets and get them up operating to a level that they expected,” Joe Foster, a portfolio manager and strategist at VanEck, said in a telephone interview. With “gold prices at $1,500, this company is going to be generating a lot of cash. I hope shareholders would see the benefits of that, with higher share prices and increasing dividends.”

Palmer, 52, inherited the baton from Gary Goldberg for a company saddled by growing pains as it integrates Goldcorp assets, including Red Lake — the project with the highest production cost in Newmont’s portfolio.

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