Newmont – Page 5 – Republic of Mining

OPINION: Barrick’s promises of golden synergies won’t be enough to snag Newmont – by Eric Reguly (Globe and Mail – February 26, 2019)

February 26, 2019

https://www.theglobeandmail.com/

Barrick Gold just traipsed into a potentially nasty battle short of ammunition.

On Monday morning, John Thornton, Barrick’s executive chairman, and CEO Mark Bristow unveiled a nil-premium, all-share offer for Colorado’s Newmont Mining. Hostile offers generally come with juicy premiums or else they don’t work, and this bid is already not working.

Were it to succeed, the audacious bid, which comes shortly after both companies announced transformative mergers of their own, would unite the two biggest names in gold mining, creating a colossus with gold operations on four continents, annual revenue of US$15.6-billion and trading liquidity that, to use Barrick’s politically incorrect term, would “dwarf” the competition.

Barrick Gold, Newmont Mining CEOs argue over size as analysts question benefits of megamerger – by Gabriel Friedman (Financial Post – February 26, 2019)

February 26, 2019

https://business.financialpost.com/

Toronto-based Barrick Gold Corp. executives used to claim that unlike other companies in the precious metals industry, they would never make acquisitions to grow their footprint and size.

But on Monday after proposing a nearly $18-billion takeover of Colorado-based Newmont Mining Corp. — a deal that if consummated would create the world’s largest gold producer, with an estimated $42-billion market cap, by a distance — Barrick chief executive Mark Bristow acknowledged that being large is critical.

“The point is we really want to attract generalists back into the industry,” Bristow said on the conference call with investors. “We want to be relevant and we think that $40 billion is relevant.”

Barrick CEO defends $18 billion hostile Newmont bid as logical tie-up – by Ernest Scheyder (Reuters U.S. – February 25, 2019)

February 25, 2019

https://www.reuters.com/

HOLLYWOOD, Fla. (Reuters) – Barrick Gold Corp’s chief executive defended the world’s largest gold producer’s hostile $18 billion bid for Newmont Mining Corp, saying on Monday the deal is “logical” for an industry battling high costs and depleting resources.

Barrick, which recently completed a $6.1 billion acquisition of Africa-focused Randgold Resources, launched its all-stock bid on Monday, encouraging the U.S. rival to ditch a previously announced $10 billion takeover of Canada’s Goldcorp Inc.

“This gold industry needs to become more relevant to investors,” CEO Mark Bristow said in an interview on the sidelines of the BMO Global Metals & Mining Conference in Hollywood, Florida.

Barrick goes hostile with $18-billion all-stock bid for U.S. rival Newmont – by Niall McGee (Globe and Mail – February 25, 2019)

February 25, 2019

https://www.theglobeandmail.com/

Barrick Gold Corp. is offering to buy Newmont Mining Corp. in an unsolicited, all-share, no-premium transaction, claiming it is a “once in a lifetime” opportunity to create an ‘unrivalled leader” in the global gold sector.

In a statement before markets opened on Monday, Barrick said it is offering 2.5694 shares for each Newmont share in a deal worth approximately US$17.8-billion.

Toronto-based Barrick says its proposal is far superior to Newmont’s US$10-billion offer to buy Goldcorp Inc., which was announced last month but hasn’t yet closed.

Barrick Gold Makes Hostile $17.8 Billion Bid for Newmont Mining – by Danielle Bochove and Ed Hammond (Bloomberg News – February 25, 2019)

February 25, 2019

https://www.bloomberg.com/

Barrick Gold Corp. is going hostile in its bid to acquire Newmont Mining Corp. and create the world’s largest gold producer, offering $17.8 billion for the company in an all-share deal. Shares of both companies tumbled.

The proposed purchase, which is a discount to Newmont’s closing price on Friday, raises the potential for a three-way fight between some of the world’s largest gold miners. Newmont said its board would review the deal but made clear its previously announced plan to take over Goldcorp Inc. offers better benefits.

“Newmont has previously determined that Barrick’s risk and return profile is inferior on many fronts, including factoring Barrick’s comparatively ineffective operating model, poor track record on delivering shareholder returns and unfavorable jurisdictional risk,” the Colorado-based company said in a statement Monday.

Barrick confirms weighing bid for Newmont Mining in no-premium deal – by Niall McGee (Globe and Mail – February 23, 2019)

February 23, 2019

https://www.theglobeandmail.com/

A hostile bid for Newmont Mining Corp. may force its shareholders into a tough decision: proceed with plans to acquire and turn around an industry laggard, or be swallowed by a long-standing rival.

Barrick Gold Corp. confirmed Friday that it has examined an all-stock takeover offer to acquire Colorado-based Newmont. Toronto-based Barrick said the bid it was contemplating would not contain a takeover premium, but the news sent Newmont shares 3 per cent higher, indicating some investors believe a formal offer will come.

The Globe and Mail reported Thursday that Barrick is mulling a US$19-billion takeover of Newmont that would involve the company flipping some Newmont assets to another company, possibly Australia’s Newcrest Mining. Bloomberg also reported Thursday night that Barrick had studied a bid.

OPINION: Barrick may have to pay fat premium for Newmont – by Eric Reguly (Globe and Mail – February 23, 2019)

February 23, 2019

https://www.theglobeandmail.com/

The marriage of Toronto’s Barrick Gold and Denver’s Newmont Mining, the two big beasts of the gold world, should have happened a long time ago. The theoretical deal made perfect sense because combining their properties in Nevada could save fortunes, all the better to reward shareholders.

And since the top mining companies tend to be run by egomaniacs obsessed with size, the union would come with bragging rights. Barrick-Newmont would bury the competition.

Mark Bristow, the new chief executive of Barrick, has revived the idea of a blockbuster Barrick-Newmont merger. If there is any executive in the mining industry who could pull off such a stunt, it is him. He has the chutzpah and his track record of superb value creation at his old haunt – Randgold Resources, which Barrick bought last year – might ensure the support of investors.

Barrick-Newmont ‘makes no sense’: Pierre Lassonde blasts deal chatter – by Noah Zivitz (BNN Bloomberg News – February 22, 2019)

February 23, 2019

https://www.bnnbloomberg.ca/

One of the most prominent names in the mining industry is blasting the mere possibility of Barrick Gold Corp., calling its potential hostile takeover bid for Newmont Mining Corp. “stupid.”

“Someone is having fun with the press,” said Pierre Lassonde, chairman of Franco-Nevada Corp. (), in an emailed statement to BNN Bloomberg. “A hostile bid in this environment is stupid. [Barrick’s] stock would get crushed.”

Barrick () confirmed in a short press release Friday morning that it has “reviewed the opportunity” to merge with Newmont () in what the company said would be an all-stock, no premium offer. Barrick added it hasn’t decided how it will proceed.

Barrick eyes hostile bid as Newmont set to become No. 1 gold producer – by Niall McGee and Rachelle Younglai (Globe and Mail – February 21, 2019)

February 21, 2019

https://www.theglobeandmail.com/

Barrick Gold Corp. is mulling a takeover bid for Newmont Mining Corp., a transaction that would represent one of the largest mining deals ever and solidify the Toronto-based company’s position as the world’s largest gold producer.

Barrick is actively working on a plan for a two-step deal that would see it take over Colorado-based Newmont for about US$19-billion in stock, then flip some of Newmont’s assets to Australia’s Newcrest Mining, according to industry sources familiar with the situation.

The sources, who were granted anonymity by The Globe because they were not authorized by their employers to speak publicly, cautioned that there are still a number of hurdles. One of those obstacles is winning support from shareholders of Newmont. The company is attempting to close its own US$10-billion acquisition of Vancouver miner Goldcorp Inc., which was only announced last month.

David Garofalo to leave Goldcorp after company merger, Newmont CEO says – by David Milstead (Globe and Mail – January 31, 2019)

January 31, 2019

https://www.theglobeandmail.com/

Goldcorp Inc. chief executive David Garofalo will leave once the company completes its merger with Colorado-based Newmont Mining Corp., says the man who engineered the deal.

Mr. Garofalo’s fate had been a question mark ever since Newmont and Vancouver-based Goldcorp announced their US$10-billion union on Jan. 14. But in an interview with The Globe and Mail, Newmont CEO Gary Goldberg confirmed there is no role planned for the Goldcorp boss once the merger, which will create the world’s largest gold miner, is done.

“David will not continue with us,” said Mr. Goldberg, who will run the new company, to be called Newmont Goldcorp. “He’s been supportive, and the whole [Goldcorp] team has been really great to work with as we work through this process.”

Can the no-premium Barrick-Randgold deal spark an M&A gold rush? – by Gabriel Friedman (Financial Post – January 29, 2019)

January 29, 2019

https://business.financialpost.com/

More Australian gold companies may be active in the M&A space this year, perhaps looking at Canadian companies

After Ian Telfer, chairman of Vancouver-based Goldcorp Inc., brokered a $10-billion sale of his company earlier this month to Newmont Mining Inc., he characterized it as one of the first in a series of deals coming to the gold sector.

“It was our sense that the industry was going to consolidate,” said Telfer. “It’s becoming a big company game for people who want exposure to gold.”

His remarks echo those made by a chorus of analysts, bankers and mining executives, who for months have been predicting a wave of mergers and acquisitions is about to hit the gold sector, where too many companies are chasing too few investors.

CEO: Newmont Likes Goldcorp’s Exploration-Pipeline Potential – by Allen Sykora (Kitco News – January 23, 2019)

January 24, 2019

https://www.kitco.com/

(Kitco News) – Newmont Mining Corp. (NYSE: NEM) is encouraged by the exploration potential of some of the properties that it will acquire from Goldcorp Inc. (TSX: G, NYSE: GG), assuming that a planned merger goes through, says Gary Goldberg, Newmont’s chief executive officer.

The CEO spoke with Kitco News Wednesday about the mega-merger that was announced on Jan. 14. The mostly all-stock transaction valued Goldcorp shares at $10 billion and would create the largest gold-mining company in the world, to be named Newmont Goldcorp.

Goldberg and other top Newmont officials are on an extensive road trip, discussing the merger with investors and others. Company officials have been trying to share what assets they like and which they think might need more work, the CEO said.

[Newmont/Goldcorp] These assets could be up for grabs after mega gold mining merger – by Rajeshni Naidu-Ghelani (Bloomberg News/Business Network News – January 18, 2019)

January 18, 2019

https://www.bnnbloomberg.ca/

Recent M&A activity in the mining sector like Newmont Mining Corp.’s move this week to buy Goldcorp Inc. to form the world’s largest gold miner, and rival Barrick Gold Corp.’s acquisition of Randgold Resources Ltd., have shaken up the lacklustre industry.

As part of the deals, the mining giants have said they will be selling assets — sparking speculation on which mines could be up for grabs, and who would be interested in buying them.

Newmont and Goldcorp. said on Monday the merged company will sell up to US$1.5 billion in assets over the next two years, while Barrick has pledged to focus on cash-generating assets.

Is Newmont Goldcorp good for North? – by Shane Lasley (Mining News – North of 60 – January 18, 2019)

January 18, 2019

https://www.miningnewsnorth.com/

he proposed combination of Newmont Mining Corp. and Goldcorp Inc. has raised questions about the future of the companies’ gold assets in the Yukon and investments in other junior mining companies across Canada’s North.

Two of the gold projects in the proposed Newmont Goldcorp pipeline are found in the Yukon – Plateau, a large property being explored by Newmont, and Coffee, a project that is nearing the mine development stage.

Knowing that the combined gold miner plans to shed some of its assets, it is currently unclear whether these projects will fit into the larger company’s pipeline or be put up for sale as part of the effort to slim down.

Dinner and a golden proposal: How Goldcorp and Newmont came together – by Niall McGee and Rachelle Younglai (Globe and Mail – January 18, 2019)

January 18, 2019

https://www.theglobeandmail.com/

When Goldcorp Inc. executives sat down with their counterparts at Newmont Mining Corp. at an upscale restaurant in downtown Vancouver, it was supposed to be a casual get-together. The mid-December dinner had been on their schedules for some time, and was planned simply to build the rapport between the two senior gold mining companies.

Instead, in one of the restaurant’s private dining rooms, Newmont chair Noreen Doyle and chief executive Gary Goldberg told Goldcorp attendees it wanted to acquire the company. The reaction from Goldcorp chair Ian Telfer and CEO David Garofalo was shock.

While Vancouver’s Goldcorp had been exploring the idea of working with Denver-based Newmont for a few years, the idea of a takeover had never come up. However, with Goldcorp’s share price severely beaten down after many strategic blunders, it was vulnerable. In fact, Goldcorp had recently been talking with Australia’s Newcrest Mining Ltd. about a possible takeover of Goldcorp.