Archive | Newmont

Eyes on Newcrest as gold dealmaking heats up – by Nichola Saminather (Reuters U.S. – January 14, 2019)

https://www.reuters.com/

TORONTO (Reuters) – Two recent large M&A deals in the gold sector have prompted speculation that Newcrest Mining (NCM.AX), Kinross Gold Corp (K.TO) and B2Gold Corp (BTO.TO) may be among the next gold companies to combine with a rival, bankers and analysts said.

On Monday, Newmont Mining (NEM.N) announced a $10 billion takeover of Goldcorp Inc (G.TO), close on the heels of Barrick Gold’s (ABX.TO) purchase of Randgold Resources.

Deal-making had largely been dormant in the gold sector in recent years, as companies focused on cutting costs amid investor criticism of inadequate management of capital. But the need to bolster shrinking gold reserves to boost growth and take advantage of rising gold prices are now providing the impetus for consolidation. Continue Reading →

Newmont CEO defends Goldcorp deal amid speculation rival bidders could emerge – Gabriel Friedman (Financial Post – January 16, 2019)

https://business.financialpost.com/

One analyst downgraded Newmont from outperformer to neutral ‘until the company provides additional clarity on its strategic plans’

Gary Goldberg, chief executive of Colorado-based Newmont Mining Corp., started off Tuesday morning feeling upbeat.

One day after announcing his company’s US$10 billion bid for Vancouver-based Goldcorp Inc., his company’s stock was trading down, again, falling three per cent at one stage on Tuesday, after falling 8.89 per cent on Monday; and now Goldcorp was also trading down more than three per cent.

Reaction to the deal looked decidedly mixed. One analyst was raising questions about the rationale for the deal and another was suggesting the price was too low and Goldcorp could attract other bidders; and yet Goldberg insisted none of it was surprising or unnerving in the slightest. Continue Reading →

Newmont likely to sell a number of Goldcorp’s Canadian mines – by Niall McGee (Globe and Mail – January 16, 2019)

https://www.theglobeandmail.com/

Newmont Mining Corp.’s acquisition of Goldcorp Inc. will likely result in the sale of a number of the latter’s Canadian mines as the combined company focuses on its best-performing and lowest-cost operations.

On Monday, the Denver-based gold major announced it had reached a friendly deal to acquire Vancouver-based Goldcorp for US$10-billion in a mostly share transaction that will see Newmont’s mine portfolio jump to 20 properties across four continents.

It was the second major deal in the Canadian gold sector in the past few months, with Toronto’s Barrick Gold Corp. recently closing its US$6-billion acquisition of Randgold Resources Ltd. Continue Reading →

Monster Gold-Mining Deals Pile Pressure on Those Left Behind – by Thomas Biesheuvel and Danielle Bochove (Bloomberg News – January 15, 2019)

https://www.bloomberg.com/

Mark Bristow’s tenure as boss of the world’s biggest gold miner might have been short-lived, but his message for smaller rivals just got even more pointed.

“Holy camoly, I missed out on a great opportunity!” is how Bristow described anyone not involved in Barrick Gold Corp.’s purchase of Randgold Resources Ltd. in September. With Newmont Mining Corp. poised to become the No. 1 producer through a $10 billion takeover of Goldcorp Inc. announced Monday, the pressure on those left behind will be even greater.

The two mega deals promise to transform the industry that many investors have shunned due to floundering bullion prices and poor decision making by producers. The newly combined companies are also expected to put several unloved assets up for sale, leaving lots of room for maneuvering by those that missed out on the dealmaking so far. Continue Reading →

Newmont’s Goldcorp Gamble May Need ‘Drastic Surgery’ to Pay Off – by Danielle Bochove, Caleb Mutua and Marvin G. Perez (Bloomberg News/Yahoo – January 15, 2019)

https://finance.yahoo.com/

(Bloomberg) — The cost to create the world’s largest gold company: A 17 percent premium for a $10 billion all-shares acquisition that faces some big-time challenges down the line.

Newmont Mining Corp.’s deal for Goldcorp Inc. stands in stark contrast to the recent zero-premium merger between Barrick Gold Corp. and Randgold Resources. The key question: Why? In October, Goldcorp shares fell to their lowest since 2002 after the miner reported lower output and higher costs than expected. Since then the stock improved only marginally before today.

The merged company will have the world’s largest production and reserve base, and the kind of liquidity and diversified assets required to attract institutional investors, Stephen D. Walker, an analyst with RBC Capital markets, wrote in a research note. Continue Reading →

Newmont Mining to take over Goldcorp in US$10-billion acquisition deal – by Niall McGee and Rachelle Younglai (Globe and Mail – January 15, 2019)

https://www.theglobeandmail.com/

Goldcorp Inc. has agreed to a US$10-billion takeover by Newmont Mining Corp. that sees the Vancouver company, once the world’s most valuable gold miner, acquired by a U.S. competitor at a fraction of its peak value.

The Goldcorp takeover is the second big deal in the past few months involving a large Canadian gold company. On Jan. 1, Toronto-based Barrick Gold Corp. closed its US$6-billion acquisition of African operator Randgold Resources Ltd.

Now, Newmont is set to surpass Barrick and grab the crown as the world’s largest gold producer by market capitalization, production and reserves. Newmont and Goldcorp will produce 6 to 7 million ounces of gold a year over the next decade, executives said on Monday. The combined stock market capitalization of the new company would be about $35-billion, compared with Barrick’s $29-billion. Continue Reading →

Why the Newmont-Goldcorp blockbuster deal is in sharp contrast to the Barrick-Randgold merger – by Gabriel Friedman (Financial Post – January 15, 2019)

https://business.financialpost.com/

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 →

Newmont Mining to buy Goldcorp – by Ian Bickis (Canadian Press/Timmins Daily Press – January 15, 2019)

https://www.timminspress.com/

Newmont Mining Corp. has struck a US$10-billion deal to take over Goldcorp Inc. in a move that will see the U.S.-based mining giant grow even larger while Canada’s mining industry loses a head office.

TORONTO — Newmont Mining Corp. has struck a US$10-billion deal to take over Goldcorp Inc. in a move that will see the U.S.-based mining giant grow even larger while Canada’s mining industry loses a head office.

Colorado-based Newmont will add Vancouver-based Goldcorp’s seven mines in North and South America to its global operations of 12 operating mines to create a company expected to rival or top Barrick Gold as the world’s largest gold producer. “This is not a deal we have to do, this is a deal that we want to do,” Newmont CEO Gary Goldberg told a conference call Monday.

The deal follows Barrick Gold’s US$6.1-billion all-stock takeover of Randgold Resources Ltd. that closed at the start of the year to create a company with a combined 2018 gold production guidance of between 5.8 million and 6.3 million ounces. Continue Reading →

Newmont Deal for Goldcorp Further Erodes Canada’s Gold Clout – by Danielle Bochove and Jacqueline Thorpe (Bloomberg News – January 14, 2019)

 

https://www.bloomberg.com/

Canada’s influence on the global mining industry appears to be shrinking by the day. Perhaps stung by the nationalistic backlash against Barrick Gold Corp.’s merger with Randgold Resources Ltd., Newmont Mining Corp. devoted a big chunk of its news release Monday explaining how its $10 billion offer for Vancouver-based Goldcorp Inc. will help Canada.

But there’s no hiding the fact that the global head office of the world’s largest gold miner will be in Greenwood Village, Colorado, where Newmont is based. Like “New Barrick,” which no longer has its top executives in Canada, Newmont Goldcorp’s incoming chief executive officer and current chairwoman are expected to remain in the U.S.

While some jobs will flow from Nevada to the miner’s new regional base for North America in Vancouver, it’s hard to imagine the influence of that city not waning as a result of the deal. Continue Reading →

Newmont to buy Goldcorp in US$10B mega mining deal – by Thomas Biesheuvel and Elena Mazneva (BNN/Bloomberg News – January 14, 2019)

https://www.bnnbloomberg.ca/

Newmont Mining Corp. will buy rival Goldcorp Inc. in a deal valued at US$10 billion, creating the world’s largest gold miner and cementing a return of M&A to the industry.

The transaction comes just three months after Barrick Gold Corp.’s move to buy Randgold Resources Ltd. in a US$5.4 billion transaction, which instantly spurred speculation that rivals would have to respond.

Goldcorp shares surged in U.S. pre-market trading, climbing 13 per cent to US$10.96 as of 6:25 a.m. in New York. Newmont shares slipped 3 per cent.

For the rest of this article: https://www.bnnbloomberg.ca/newmont-to-buy-goldcorp-in-us-10b-mega-mining-deal-1.1197745

Canada’s Goldcorp to be swallowed by Newmont in $10-billion all-stock deal – by Niall McGee (Globe and Mail – January 14, 2019)

https://www.theglobeandmail.com/

Canada’s Goldcorp Inc. is being swallowed by United States gold major Newmont Mining Corporation in a friendly all-stock acquisition valued at $10-billion. This is the second huge M&A deal in the global gold sector in the past few months. Barrick Gold Corp. closed its US$6-billion acquisition of Randgold Resources Ltd only a few weeks ago.

The Globe and Mail reported on Friday that Goldcorp was in talks with Newmont as it explored strategic options with its stock trading at a 17-year low. Goldcorp also talked to Australian gold major Newcrest Mining before Christmas about a deal but those talks fell apart.

Goldcorp shareholders will receive 0.328 of a Newmont share for their stock. The 17-per-cent premium being paid is low compared to similar sized acquisitions on a historical basis. When the gold price was trading at much higher levels, takeover premiums in the 30 to 40 per cent range were common in the industry. Continue Reading →

Barrick in talks with Newmont to combine Nevada gold operations: sources – by Zandi Shabalala and Clara Denina (Reuters U.S. – November 5, 2018)

https://www.reuters.com/

LONDON (Reuters) – Barrick Gold Corp, which is being formed by Barrick’s (ABX.TO) $6.1 billion takeover of Randgold Resources (RRS.L), is in talks with Newmont Mining (NEM.N) to combine their Nevada gold mining operations, sources told Reuters.

Last month’s tie-up between Barrick and Africa-focused Randgold Resources revived speculation about a joint venture between Newmont and Barrick in Nevada, something the two mining firms had explored in 2014 without reaching a deal.

“They have been trying to negotiate for years but Newmont couldn’t agree with Barrick, now that you have a new management team, it’s certain they revived those talks,” one source said. Continue Reading →

Newmont profit dips alongside gold, copper prices – by Susan Taylor (Reuters U.S. – October 25, 2018)

https://www.reuters.com/

TORONTO (Reuters) – Colorado-based Newmont Mining Corp (NEM.N) reported lower third-quarter profit and revenue on Thursday, as a drop in bullion and copper prices hurt the gold miner’s results.

Newmont had been jockeying for the title of world’s largest gold producer this year, until Barrick Gold (ABX.TO) announced its $6.1 billion deal to buy Randgold Resources (RRS.L) in September.

Newmont would rather focus on improving margins for existing production than pursuing mergers and acquisitions for growth, Chief Executive Gary Goldberg said last month at an annual gold industry gathering in Denver. Continue Reading →

Newmont squashes Barrick Gold bid talk – by Neil Hume (Financial Times – September 26, 2018)

https://www.ft.com/

Newmont Mining has scotched talk of a bid for Canadian rival Barrick Gold, saying there was no value in a tie-up.

Speaking at the Denver Gold Forum on Tuesday, Newmont chief Gary Goldberg said the company had examined a deal in the past and had not “seen anything”. “I don’t see that changing,” he told Bloomberg News.

After Barrick Gold announced on Monday a $6bn all-stock offer for Africa-focused rival Randgold Resources, there was talk that Newmont might look to wreck the deal with a bid for its Canadian rival. Continue Reading →

Newmont can’t get enough of Colombia, buys 19.9% of Orosur – by Cecilia Jamasmie (Mining.com – September 10, 2018)

http://www.mining.com/

World’s second largest gold producer Newmont Mining (NYSE:NEM) has acquired 19.9% of Canadian gold junior Orosur Mining (TSX, AIM:OMI), which recently closed operations in Uruguay and Chile to focus on Colombia.

Through a placement worth $2 million, Newmont has acquired 29.2 million commons shares at a price of C9.1c (6.9 cents) each. The exploration and option agreement includes a three-phase earn-in structure that allows Newmont to earn up to a 75% ownership interest in Orosur’s Anzá project, located in Colombia’s Department of Antioquia.

To secure a majority stake in the project, however, the US miner would have to spend $30-million over 12 years, complet a National Instrument 43-101-compliant feasibility study and make $4 million in cash payments, Orosur said in a statement. Continue Reading →