Proactive Investors - Run By Investors For Investors

Newmont Mining to create world’s biggest gold producer by output with $10bn deal to buy Goldcorp

In 2017, Newmont produced 5.3mln ounces of gold, while Goldcorp mined 2.6mln ounces, and the combined company is expected to produce 6-7mln ounces of gold over the next ten years
Gold and dollars
Newmont said it will offer 0.3280 of its shares and $0.02 for each Goldcorp share, equivalent to $11.46 per share, a premium of about 18% based on Friday’s closing prices

Newmont Mining Corp (NYSE:NEM) is to buy Canadian rival Goldcorp Inc (TSX:G) in a deal valued at $10bn which will create the world’s biggest gold producer by output.

In 2017, Newmont produced 5.3mln ounces of gold, while Goldcorp mined 2.6mln ounces, and the combined company is expected to produce 6-7mln ounces of gold over the next ten years.

READ: New-look mining behemoth Barrick starts trading in New York and Toronto as gold reaches six month high

In a statement, Newmont said it will offer 0.3280 of its shares and $0.02 for each Goldcorp share, equivalent to $11.46 per share, a premium of about 18% based on Friday’s closing prices.

It pointed out that the combined company’s reserves and resources will represent the largest in the gold sector, located across the Americas, in Australia and in Ghana.

The Canadian company’s chief executive officer David Garofalo said: “The strategic rationale for combining Goldcorp with Newmont is powerfully compelling on many levels.”

In pre-market New York trading, Goldcorp’s shares were trading at $12.86 each, while Newmont Mining’s shares were down 6.5% at $32.60.

The deal is the second mega-merger in the gold mining in the last year, with Canada’s Barrick Gold Corp (TSX:ABX) having bought London-listed Randgold Resources in a deal agreed in September 2018.

View full G profile View Profile

Goldcorp Timeline

Related Articles

1541073181_shutterstock_249210421-(1).jpg
November 01 2018
The growth profile for Endeavour Mining has never looked better
Underground mine
March 28 2019
This exploration, royalty and property bank and boasts no less than 168 assets
1533317104_renaiisance-mastre-landscape.jpg
August 03 2018
The company has an extensive portfolio of exploration projects in Nevada and Utah

© Proactive Investors 2019

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use