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Published by Jane Bentham,
Editorial Assistant
Global Mining Review,
Tuesday, 07 November 2023 15:00
Newmont Corporation has announced it has completed the acquisition of Newcrest Mining Limited to create the world’s leading gold company with robust copper production.
“Today marks a historic milestone in our company and the industry with the successful completion of this transformational acquisition of Newcrest by Newmont,” said Tom Palmer, Newmont’s President and Chief Executive Officer. “Our attention now turns to safely, efficiently, and responsibly integrating Newcrest’s assets and people into Newmont’s proven operating model, so we can accelerate the delivery of our value-focused strategy for all our stakeholders.”Featuring more than half of the world’s Tier 1 assets, Newmont’s portfolio of long-life operations, value-accretive projects, abundant exploration opportunities, and world-class talent will underpin years of profitable production in the world’s most favourable jurisdictions. This expanded portfolio will include operations with scale, margin, and mine life to generate robust and lasting returns for decades, while supporting best-in-class sustainability performance.With the transaction now complete, Newmont’s acquisition of Newcrest is expected to:Strengthen Newmont’s position as the responsible gold mining leader through the combination of high-quality operations, projects, and reserves concentrated in low-risk jurisdictions, including 10 Tier 1 operations to support decades of safe, profitable, and responsible gold and copper production.Generate annual pre-tax synergies of US$500 million, expected to be achieved within the first 24 months, together with at least US$2 billion in cash improvements through portfolio optimisation in the first two years after closing.Maintain Newmont’s balanced capital allocation priorities and industry-leading non-binding dividend payout; since closing the Goldcorp transaction in 2019, Newmont has paid more than US$5 billion in dividends, further demonstrating their commitment to their shareholders.Feature a deep bench of experienced leaders, subject matter experts, and existing regional teams in Australia and Canada with extensive mining industry experience.Maintain industry leadership in environmental, social, and governance performance.In connection with the transaction, Newmont issued 357 691 627 new shares of Newmont common stock, including 15 720 585 New Newmont Shares, 341 792 611 shares underlying New Newmont CDIs and 178 431 shares underlying New Newmont PDIs.
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