Newmont, the world’s biggest gold miner by market capitalisation, has made a US$16.9bn play for Newcrest, the biggest gold miner in Australia.
The move comes at a time of uncertainty for Newcrest, which is seeking a new boss after previous chief executive Sandeep Biswas stepped down in December.
Its relationship with London gold exploration champion Greatland Gold has also come into question in recent months as the two companies work out how the massive new discovery at Haveiron in Australia’s Paterson Range will be developed.
It remains an open question whether a Newmont bid for Newcrest will succeed, and the offer may simply be a statement of acquisitive intent by Newmont to the broader investment community and to the mining industry in general.
Newcrest shares initially jumped by more than 14% to A$25.60 on the news, their highest price since May 2022, although they subsequently slipped back.
Newcrest's operations include the Cadia mine in Australia, an expanding footprint in North America and Papua New Guinea, and growth potential in copper.
The offer follows BHP Group’s multi-billion dollar for Australian copper miner OZ Minerals in December.
Whether the deal will be allowed to go through at a national level is an other issue. The Australian government has a history of nixing takeover bids for national champions. Some years ago, it stymied an offer for local oil and gas giant Woodside.