{"id":1094191,"date":"2019-01-14T20:03:59","date_gmt":"2019-01-14T20:03:59","guid":{"rendered":"http:\/\/resourceworld.com\/?p=54688"},"modified":"2019-01-14T20:03:59","modified_gmt":"2019-01-14T20:03:59","slug":"newmont-goldcorp-to-be-no-1-gold-miner","status":"publish","type":"post","link":"https:\/\/juniorminingnews.com\/?p=1094191","title":{"rendered":"Newmont Goldcorp to be No. 1 gold miner"},"content":{"rendered":"
\"\"<\/a><\/p>\n

Goldcorp\u2019s Eleonore Mine in northern Quebec. Source: Goldcorp Inc.<\/p>\n<\/div>\n

Consolidation in the global gold mining sector continued Monday January 14 with news that Goldcorp Inc.<\/strong> [G-TSX; GG-NYSE] and Newmont Mining Corp.<\/strong> [NEM-NYSE] have agreed to merge in an all-stock deal worth $10 billion.<\/p>\n

The combined company, called Newmont Goldcorp, will have operations in the Americas, Australia and Ghana, producing between 6.0 million and 7.0 million ounces of gold annually.<\/p>\n

That would make the largest gold producer globally by some distance.<\/p>\n

News of the deal comes after Barrick Gold Corp.<\/strong> [ABX-TSX, NYSE] recently agreed to merge with Randgold Resources Ltd.<\/strong> [GOLD-NASDAQ, LSE]. Barrick is expecting to produce 4.5 million to 5 million ounces of gold in 2018, potentially rising to 6 million ounces this year.<\/p>\n

The combination of Newmont and Goldcorp will create the world\u2019s leading gold company, with a portfolio of assets to support sustainable, profitable gold production over a long-term horizon, the companies said in a press release, Monday.<\/p>\n

Under the terms of the agreement, Newmont will acquire each Goldcorp share for 0.3280 of a Newmont share and $0.02 for each Goldcorp share, which represents a 17% premium based on the companies\u2019 volume weighted average share prices. It means Newmont is paying around $11.50 for Goldcorp.<\/p>\n

Scotiabank analyst Tanya Jakusconek expressed the opinion Monday that the chances of another bidder emerging are low.<\/p>\n

Newmont and Goldcorp shareholders will own approximately 65% and 35% of the combined entity respectively.<\/p>\n

\u201cThis combination creates the world\u2019s premier gold company,\u201d said Goldcorp President and CEO David Garofalo.<\/p>\n

By combining their operations, the duo are seeking steady profitable gold production and targeting up 7.0 million ounces over a decades long time horizon.<\/p>\n

The merged entity is also aiming for a sustainable annual dividend of $0.56 per share, the highest among senior gold producers.<\/p>\n

The merged company will also seek to shed up to $1.5 billion worth of assets over the next two years, enabling it to function with a more reasonable size and stable production level. It will be looking to achieve up to $100 million in annual pre-tax synergies.<\/p>\n

Goldcorp shares advanced 7.47% or $0.96 on the news to $13.82 on volume of 6.4 million. The 52-week range is $19.32 and $11.<\/p>\n

Newmont was off 8.43% or US$2.94 to US$31.94 on volume of 17 million.<\/p>\n

Newmont CEO Gary Goldberg will lead the combined company, while Newmont Chief Operating Officer Tom Palmer is expected to hang onto that role.<\/p>\n

The companies said Goldcorp\u2019s Vancouver headquarters will become a regional office and a base for some of the combined entity\u2019s global functions, including oversight of Indigenous community relations.<\/p>\n

Newmont is merging with Goldcorp at the tail end of what has been a steep decline in the value of Goldcorp\u2019s shares from $54 in 2011.<\/p>\n

Back in October, 2018, Goldcorp lost almost one-fifth of its market value in a single day after reporting weaker than expected production numbers, rising costs and declining reserves.<\/p>\n

The transaction is expected to close in the second quarter of 2019.<\/p>\n","protected":false},"excerpt":{"rendered":"

Consolidation in the global gold mining sector continued Monday January 14 with news that Goldcorp Inc. [G-TSX; GG-NYSE] and Newmont Mining Corp. [NEM-NYSE] have agreed to merge in an all-stock… Read more »<\/a><\/span><\/p>\n","protected":false},"author":41,"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":[622],"tags":[48],"_links":{"self":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1094191"}],"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\/41"}],"replies":[{"embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1094191"}],"version-history":[{"count":1,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1094191\/revisions"}],"predecessor-version":[{"id":1094192,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1094191\/revisions\/1094192"}],"wp:attachment":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1094191"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1094191"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1094191"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}