Newmont To Purchase Goldcorp For $10bn
The agreement will combine two gold industry leaders into Newmont Goldcorp, which will have a portfolio featuring operating assets in favourable jurisdictions, an unparalleled project pipeline, and exploration potential in prospective gold districts around the globe, the company said in a statement.
“This combination will create the world’s leading gold business with the best assets, people, prospects and value-creation opportunities,” said Gary Goldberg, Newmont’s CEO. “We have a proven strategy and disciplined implementation plan to realize the full value of the combination, including an exceptional pool of talented mining professionals, stable and profitable gold production of six to seven million ounces over a decades-long time horizon, the sector’s largest gold reserve and resource base, and a leading project and exploration pipeline. Our cultures are well aligned, with strong commitments to zero harm, inclusion and diversity, and industry-leading environmental, social and governance performance. We expect to generate up to $100-million in annual pre-tax synergies, with additional cost and efficiency opportunities that will be pursued through our proven Full Potential continuous improvement programme.”
Newmont Goldcorp’s reserves and resources will be located in favourable mining jurisdictions in the Americas, Australia and Ghana, representing around 75%, 15% and 10%, respectively. Newmont Goldcorp will also prioritize project development by returns and risk, while targeting $1.0 to $1.5 billion in divestitures over the next two years to optimise gold production at a sustainable, steady-state level of six to seven million ounces annually, Newmont stated.
“This combination creates the world’s premier gold company,” explained Goldcorp’s CEO, David Garofalo. “In addition to the depth and quality of Newmont Goldcorp’s operations, projects, exploration properties and reserves, the combined company’s assets will be centered in the world’s most favorable and prospective mining jurisdictions and gold districts. The strategic rationale for combining Goldcorp with Newmont is powerfully compelling on many levels, and both teams are fully committed to delivering on the transaction’s value proposition for all of our stakeholders. Newmont Goldcorp will be one of Canada’s largest gold producers and will have its North America regional office in Vancouver, and expects to oversee more than three million ounces of the combined company’s total annual gold production.”