{"id":1094091,"date":"2019-01-14T10:50:52","date_gmt":"2019-01-14T10:50:52","guid":{"rendered":"http:\/\/www.mining.com\/?p=963323"},"modified":"2019-01-14T10:50:52","modified_gmt":"2019-01-14T10:50:52","slug":"newmont-grabs-goldcorp-in-10b-deal-that-creates-worlds-top-gold-miner","status":"publish","type":"post","link":"https:\/\/juniorminingnews.com\/?p=1094091","title":{"rendered":"Newmont grabs Goldcorp in $10B deal that creates world’s top gold miner"},"content":{"rendered":"

US gold giant Newmont Mining (NYSE:NEM) took a page out of Barrick\u2019s book by announcing that is buying Canada\u2019s Goldcorp<\/a> (TSX:G) (NYSE:GG) in a $10 billion-deal that would create the world\u2019s largest producer by output, challenging\u00a0Barrick\u2019s recently cemented supremacy<\/a>.<\/p>\n

The combined company, which will be called Newmont Goldcorp, will mine in the Americas, Australia and Ghana, producing between 6 and 7 million ounces of gold annually over the next ten years and beyond, the parties said.<\/p>\n

As part of the transaction, Newmont has committed to sell between $1 billion to $1.5 billion worth of assets over the next two years. It has also promised initial cost savings of $100 million a year.<\/p>\n

The combined miner, named Newmont Goldcorp, will have operations in the Americas, Australia and Ghana, producing between 6 and 7 million ounces of gold annually over the next ten years and beyond.<\/q><\/p>\n

The new gold miner will be led by Newmont\u2019s Chief Executive Officer Gary Goldberg, who is retiring by the end of the year<\/a>. Tom Palmer, the company\u2019s current chief operating officer, will then take over as the CEO.<\/p>\n

The stock-for-stock\u00a0deal comes barely three months after Barrick move on Randgold Resources, which created the world\u2019s No. 1 gold company and prompted speculation that rivals would need to respond<\/a>.<\/p>\n

Newmont\u2019s move proves Barrick Gold Corp.\u2019s new chief executive officer words prophetical. Mark Bristow said earlier this year the gold industry was heading for irrelevance unless major changes took place and added the arrival of new Barrick was just the start of a big shake-up<\/a>.<\/p>\n

The two massive gold transactions have the potential to boost investor interest in an industry that has fallen out of favour after years of weak metal prices, dubious investments and failed deals.<\/p>\n

Canada\u2019s Goldcorp, the world’s third largest bullion producer by market value, has underperformed its peers in recent years. In late October, The Vancouver-based miner lost close to a fifth of its market value<\/a> in a single day after reporting weak production, climbing costs and a decline in reserves.<\/p>\n

The company\u2019s shares have been in a long-term tailspin, trading at $12.86 Friday on the Toronto Stock Exchange, down from more than $54 in 2011.<\/p>\n

The merger is scheduled to close in the second quarter.<\/p>\n

More to come…<\/em><\/p>\n

The post Newmont grabs Goldcorp in $10B deal that creates world’s top gold miner<\/a> appeared first on MINING.com<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"

Massive deal creates company that challenges rival Barrick as the world’s largest gold producer.<\/p>\n

The post Newmont grabs Goldcorp in $10B deal that creates world’s top gold miner<\/a> appeared first on MINING.com<\/a>.<\/p>\n","protected":false},"author":8,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"footnotes":""},"categories":[421,514,674,404,369,1020,662,428],"tags":[9,15,18,25,48,71,83],"_links":{"self":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1094091"}],"collection":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1094091"}],"version-history":[{"count":3,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1094091\/revisions"}],"predecessor-version":[{"id":1094290,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1094091\/revisions\/1094290"}],"wp:attachment":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1094091"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1094091"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1094091"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}