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Monday, Feb 26, 2024
Mugglehead Magazine
Alternative investment news based in Vancouver, B.C.

Business

Newmont shareholders approve acquisition of Newcrest Mining

Both companies expect the deal to close in early November

Newmont shareholders approve US$19.2B acquisition of Newcrest Mining
Photo via Newmont.

Newmont Corporation (NYSE: NEM, TSX: NGT) has received overwhelming support from its United States shareholders for the proposed US$16.8 billion (A$26.2 billion) Newcrest Mining Limited (ASX, TSX, PNGX: NCM) acquisition.

This week, Newmont announced that more than 96 per cent of votes were in favour of the takeover. However, Newcrest shareholder voting will be held this Friday.

Newcrest said last week that Newmont had received all government regulatory approvals required from the Australian Foreign Investment Review Board and competition authorities in Australia, Canada and Papua New Guinea.

“Recognizing the strategic rationale to create the industry’s strongest portfolio of world-class gold and copper assets, Newmont’s shareholders overwhelmingly voted in favour of this transformational transaction,” Newmont’s CEO Tom Palmer said.

“This unrivalled platform, featuring the industry’s best talent running the highest concentration of Tier One assets in the most favourable jurisdictions, uniquely positions Newmont to generate superior returns for decades.”

The combined business is anticipated to generate annual pre-tax revenue of $500 million, expected to be achieved within the first 24 months, while also targeting at least $2 billion in cash improvements through portfolio optimization in the first two years after closing.

Newmont’s stock stayed flat on Friday at $53.64 on the Toronto Stock Exchange. Newcrest will delist from the ASX on October 26 and shares in the merged entity will commence trading early next month.

Read more: Strike ends at Newmont’s Mexico mine, workers receive 8% raise

Read more: Newcrest accepts Newmont’s latest takeover bid for US$19.2B

Mid May, Newmont announced its agreement to acquire Newcrest after a failed bid. The combination would create a world-class portfolio of assets with the highest concentration of Tier 1 operations, primarily in favourable, low-risk mining jurisdictions.

Upon closing, the combined company would deliver a multi-decade production profile from 10 large, long-life, low-cost Tier 1 operations, and increased annual copper production, primarily from Australia and Canada.

Newmont is already the world’s biggest gold miner with a market valuation of almost $40 billion.

Read more: Calibre Mining reports strong Q3 cash flow with 26% increase to US$97M

Read more: Calibre Mining publishes open pit gold estimate for Cerro Volcan Gold, Nicaragua

Canadian gold companies making strides

Meanwhile, Canadian gold companies have been making significant strides in the global mining industry.

Companies such as Calibre Mining Corp. (TSX: CXB) (OTCQX: CXBMF) have increased their cash flow by 72 per cent since the beginning of the year and 26 per cent in the last quarter. Calibre reported an increase in its cash to USD$97 million since the last quarter and a fourth consecutive record of gold production.

 

Calibre Mining is a sponsor of Mugglehead News coverage

 

natalia@mugglehead.com

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