Newmont has higher a dividend, safer locations than Barrick and will invest in Canada, but its stock still fell. Perhaps copper-gold mining will help it shine
As Newmont Mining Inc.’s chief executive Gary Goldberg hawked a proposed $10 billion all-stock purchase of Vancouver-based Goldcorp to his investors on Monday, he and his team emphasized massive gold production, a focus on mines in the safest jurisdictions in the world and continued investment in Canada.
That drew a stark contrast to chief rival Barrick Gold, which also recently completed a mega-merger, and has reduced its presence in Canada and grown in more risky jurisdictions. “This is not a deal we have to do, it’s a deal we want to do,” Goldberg told investors.
But while Barrick’s share price surged after announcing its deal, Newmont’s stock had declined 8.89 per cent to close at US$31.78 on Monday afternoon. Continue Reading →