(Bloomberg) — Newcrest Mining Ltd. rejected an initial $17 billion takeover bid by US rival Newmont Corp., with the Australian miner’s interim CEO saying the company was “worth a lot more.”
It did offer some hope to its suitor, however, by indicating it’s prepared to provide access to its books on a non-exclusive basis. The all-shares deal would have been the largest globally this year and created the world’s biggest gold miner.
Newmont Mining (NYSE: NEM)(TSX: NGT), the world’s largest gold producer, is seeking to build a global gold superpower by approaching Australia’s no.1 miner of the yellow metal, Newcrest Mining (ASX, TSX: NCM), with a $17 billion takeover offer.
If successful, the deal would be one of the biggest in Australian history, though initial feedback from analysts and shareholders suggests that Newmont will have to improve its bid.
US-based Nevada Gold Mines (NGM) continues to demonstrate the impact of Barrick Gold’s strategy of combining the best assets with the best people as new projects and prospects secure its future as a high-quality, long-life operation for decades to come, says NGM chairperson Mark Bristow.
Speaking during a visit by a group of equity analysts and investors to the development of the Goldrush underground project, the openpit operations and processing facilities at Cortez, and the Third Shaft project and core shack at Turquoise Ridge, Bristow said NGM had unlocked significant synergies by consolidating mines, teams, processing facilities and landholdings.
In 2019, Barrick Gold Corp and Newmont formed a mega-company that would be managed by Barrick’s executives. The new company, Nevada Gold Mines, now accounts for about 75% of the state’s gold production.
Earlier this year, High Country News and The Nevada Independent published an investigation into Nevada Gold Mines’ outsized influence in northeastern Nevada. With about 7,000 employees and 4,000 contractors, Nevada Gold Mines dominates the economy of that part of the state, operating with enormous influence and little competition.
Colorado-based Newmont Corp. reclaimed the title of world’s largest gold producer in 2018 as rival and partner Barrick Gold Corp.’s output fell by over 800,000 ounces. Following Newmont’s $10.01 billion acquisition of Goldcorp Inc. in 2019, its lead over Barrick grew to more than 1.5 million ounces in 2021, despite Barrick’s acquisition of Randgold Resources in January 2019.
Our analysis of Newmont’s strategies is based on a detailed compilation of its activities over the 2012-21 period, part of the Strategies for Gold Reserves Replacement study, which includes analysis of the world’s top five gold producers in 2021.
Newmont (NYSE: NEM) (TSX: NGT), the world’s No. 1 gold miner, completed on Monday the acquisition of GT Gold, after it grabbed the remaining 85.1% of common shares of the Canadian explorer it did not already own.
The C$393 million ($325m) cash deal, first announced in March, gives the US-based gold giant the Tatogga gold-copper project, located in the Traditional Territory of the Tahltan Nation.
“With the acquisition of GT Gold and the Tatogga project in the highly sought-after Golden Triangle district of British Columbia, Canada, Newmont continues to strengthen our world-class portfolio,” Newmont president and CEO Tom Palmer said in the statement.
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It follows fellow gold major Newmont announcing in November “industry-leading climate targets of 30% reduction in greenhouse gas (GHG) emissions by 2030, with an ultimate goal of achieving net zero carbon emissions by 2050”.
Barrick unveiled its 2020 sustainability report last week and president and CEO Mark Bristow conducted a virtual presentation to investors yesterday on sustainability, which the miner said was “the first of its kind for Barrick”.
“A standout achievement has been our progress with regards to climate change,” Bristow said during the presentation.
Newmont (NYSE: NEM) (TSX: NGT), the world’s No. 1 gold miner, is acquiring all the shares it doesn’t already own in Canadian explorer GT Gold (TSX-V: GTT) in a cash deal valued at about $311 million (C$393m).
The transaction will see the US mining giant buying the remaining 85.1% of common shares of GT Gold it doesn’t already have for C$3.25/share in cash. The figure represents a 38% premium to the 20-day volume-weighted average price of GT Gold’s shares on the Toronto Stock Exchange as of March 9.
GT Gold’s primary asset is the wholly-owned, 47.5K hectare Tatogga gold-copper project, located in the Traditional Territory of the Tahltan Nation, about 14km west of the Red Chris copper-gold mine.
https://www.northernontariobusiness.com/
Newmont says Vancouver-based centre will aim to improve relations across company, mining industry
Gold miner Newmont has launched the Global Centre for Indigenous Community Relations to advance relationships between mining companies and Indigenous Peoples within the company and across the industry.
In a Feb. 2 news release, the company said the Vancouver-based centre would act as a way to “promote awareness, education and engagement between industry and Indigenous Peoples.”
“Newmont recognizes the special connection between Indigenous Peoples and the land, and that mining can affect this connection in some challenging ways,” said Tom Palmer, Newmont’s president and CEO, in the release.
The world’s largest gold miner has just set new targets to cut emissions by 2030 and said it wants to go carbon neutral two decades later.
But while Newmont Corp.’s plan is more ambitious than that of other mining companies including BHP Group and Barrick Gold Corp., it doesn’t fully address the elephant in the room for the global industry: the so-called Scope 3 emissions, which are generated by its supply chain and customer use.
The Greenwood Village, Colorado-based company plans to cut emissions from its operations and power generation 30 per cent by 2030 from 2018 levels, with the target for Scope 3 set at 15 per cent, according to a statement. It also wants to go carbon neutral by 2050, but provides little detail on how that will be achieved.
(Bloomberg) — The world’s biggest gold producer sees the price of the precious metal remaining “elevated” as governments continue pandemic stimulus spending, but don’t expect that to change Newmont Corp.’s focus on fiscal “discipline” any time soon.
Gold skyrocketed to record heights above $2,000 an ounce in August, helping lift miners’ cash flow, stock prices and likely the hopes of shareholders expecting higher returns. Spot gold has since dipped a bit, but the haven metal is still trading in record territory above $1,900.
“There are a lot of signals that point to gold staying at these elevated levels — with I think a lot of volatility around it — for some time to come,” Newmont Chief Executive Officer Tom Palmer said by phone.
LONDON (Reuters) – Platinum and palladium markets will be tight this year as the coronavirus pandemic hammers supply and demand, materials maker Johnson Matthey said on Monday, declining to give full-year forecasts and saying prices will be erratic.
Production of the metals, used to reduce vehicle emissions, and their consumption by auto makers could fall by around one-fifth in 2020 but the course of the virus is too uncertain to give precise numbers, the company said in a report.
Temporary dislocations as the new coronavirus impacts different places at different times could have the biggest influence on prices, Rupen Raithatha, Johnson Matthey’s director of market research, said.
Gold could top US$2,000 an ounce and will remain elevated over the next five years as the global economy contends with the impact of the coronavirus pandemic, according to the head of Newmont Corp., the world’s top miner of the precious metal.
“The level of stimulus globally that’s going into the economy certainly underpins higher gold prices for the longer term, and I don’t think that stimulus has stopped yet,” Chief Executive Officer Tom Palmer said Thursday in a phone interview from Perth. “You could certainly see scenarios that have it pushing north of US$2,000.”
Spot bullion is trading around US$1,720 — close to a more than seven-year high — and is forecast by numerous banks to extend gains as the impact of the virus pushes economies toward recession and prompts action from central banks.
https://www.northernontariobusiness.com/
Musselwhite Mine in northwestern Ontario is one of four mines Newmont has chosen to temporarily suspending operations due to the COVID-19 outbreak.
The remote, fly-in/fly-out operation is being placed in care and maintenance to protect nearby First Nations from the spread of the virus and also to adhere to government-mandated travel restrictions in Canada and South America.
Musselwhite is an underground gold mine, 500 kilometres north of Thunder Bay. The Newmont mines being temporarily mothballed are: Eléonore in Quebec, Cerro Negro in Argentina, and Yanacocha in Peru.
Colorado-based gold miner Newmont (NYSE: NEM, TSX: NGT) has reported gold mineral reserves of 100.2 million attributable ounces for 2019, the largest ever in company history. This represents a 53% increase over the 65.4 million ounces recorded in 2018 following the completion of two major transactions and through ongoing exploration success.
Last year, Newmont added almost 50 million ounces of gold reserves through the acquisition of Goldcorp, the formation of the Nevada Gold Mines joint venture and the continuation of its exploration program, solidifying the company as the world’s largest gold miner.
According to President and CEO Tom Palmer, the company’s reserve and resource base will be able to support stable production of more than six million ounces per annum for decades to come.
