Precious Metals
August 1, 2023

The Biggest merger in the gold mining industry ever

Who is Newmont?

Newmont Corporation, headquartered in Greenwood Village, Colorado, is a prominent American gold mining company. It holds the distinction of being the largest gold mining corporation globally. Since its establishment in 1921, Newmont has acquired and operates gold mines across various locations, including Nevada, Colorado, Ontario, Quebec, Mexico, the Dominican Republic, Australia, Ghana, Argentina, Peru, and Suriname. The company's mining operations extend beyond gold, encompassing copper, silver, zinc, and lead extraction as well.

With a workforce comprising around 31,600 employees and contractors, Newmont maintains a substantial global presence. Notably, it is the sole gold company listed in the Standard & Poor's 500 stock market index.

Apart of its environmental commitment, Newmont has earmarked $500 million for renewable energy projects between now and 2025. This investment aligns with the company's ambitious goal of reducing carbon emissions by 30% before 2030.


1. Newcrest shareholders will be entitled to receive0.400 Newmont shares (or 0.400 Newmont CDI1) for every Newcrest share they hold. Additionally, they will receive a special dividend of up to $1.10 per share, which will be paid by Newcrest. This offer represents a premium of 30.4percent compared to the current market value of Newcrest shares.

2. The combination of Newmont's high-quality operations, projects, and reserves with those of the acquired company further solidifies Newmont's position as the leading responsible gold mining company. These assets are concentrated in low-risk jurisdictions and include 10 Tier 1 operations .With this strategic merger, Newmont is poised to sustain safe, profitable, and responsible gold and copper production for decades to come.

3. The acquisition is expected to be highly beneficial for Newmont shareholders, resulting in increased profitability and the potential to boost near-term cash flows. The company aims to achieve a minimum of $2 billion in enhanced cash flows within the first two years after closing by optimizing its portfolio.

4. Newmont remains committed to its balanced capital location priorities and industry-leading dividend framework, having already returned over $4.5 billion to shareholders since its establishment in October2020

5. The transaction is contingent upon meeting customaryconditions, including obtaining shareholder approval. The completion of thedeal is anticipated to take place in the fourth quarter of 2023.


The Biggest deal of ALL time in gold Mining:

In a ground breaking deal, gold mining titan Newmont Corp has successfully secured a massive A$28.8 billion ($19.2 billion) acquisition of its Australian rival, Newcrest Mining Ltd. This monumental move cements Newmont's position as the global gold mining champion, boasting a vast network of mines across the Americas, Africa, Australia, and Papua New Guinea. With a unanimous nod of approval from Newcrest's board and regulatory clearance on the horizon, this record-breaking transaction outshines all previous deals in the gold mining industry—including Newmont's 2019 purchase of Goldcorp Inc.

By welcoming Newcrest into its fold, Newmont not only expands its glittering gold reserves but also gains significant exposure to the increasingly valuable copper market. This strategic move couldn't come at a more opportune time as copper demand is expected to soar amid dwindling supplies and a worldwide shift away from fossil fuels. Facing daunting challenges like reduced production and spiraling costs, gold mining companies now turn to mergers and acquisitions as a beacon for growth—paving the way for expansion, elevated production levels, and optimized operational efficiency.

The spotlight now shines brightly on Newmont's capabilities to seamlessly integrate this massive acquisition, generate savings, and shed non-core assets—all in pursuit of an ambitious $500 million in annual synergies. The Denver-based mining giant plans to fine-tune its portfolio and turbocharge its cash flows by$2 billion within two years post-acquisition.

As part of this strategic consolidation, two of Newcrest's Western Australian mines—Telfer and Havieron—could be poised for sale. Due to Telfer reaching maturity and Havieron's smaller scale, they may not fit snugly within the framework of Newmont's expanded operations. Analysts predict numerous gold-hungry companies will jump at the opportunity to acquire these assets, with London-based Great land Gold Plc—a current partner in Havieron—appearing as a prime contender.

Under the deal's terms, Newcrest shareholders are set to receive 0.4 shares in Newmont for each of their current shares, granting them a 31% stake in the merged powerhouse. Furthermore, they will also bag a tax-free special dividend, potentially reaching up to $1.10 per share, before the deal's grand finale. The transaction bestows an implied share price of A$29.27 upon Newcrest, offering a dazzling premium of over 30% compared to its closing price on February 3rd.This remarkable proposal not only further bolsters Newmont's supremacy in the global gold mining arena but also marks a momentous stride forward for the company.

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