{"id":1102187,"date":"2019-02-26T13:45:50","date_gmt":"2019-02-26T13:45:50","guid":{"rendered":"http:\/\/www.mining.com\/?p=973623"},"modified":"2019-02-26T13:45:50","modified_gmt":"2019-02-26T13:45:50","slug":"barrick-newmont-merger-would-leave-up-to-7b-of-assets-up-for-grabs","status":"publish","type":"post","link":"https:\/\/juniorminingnews.com\/?p=1102187","title":{"rendered":"Barrick-Newmont merger would leave up to $7B of assets up for grabs"},"content":{"rendered":"

Canada\u2019s Barrick Gold’s (TSX:ABX)(NYSE:GOLD) hostile $17.8 billion bid<\/a>\u00a0for rival Newmont Mining (NYSE:NEM)\u00a0could free up a group of assets the combined company would no longer consider key, such as their Kalgoorlie super pit 50\/50 joint-venture in Western Australia.<\/p>\n

After launching the offer on Tuesday, Barrick chief executive officer Mark Bristow said he had already been contacted by parties that have expressed interest in the company\u2019s Australian assets.<\/p>\n

The divestment goals announced by the Newmont-Goldcorp tie-up and the new Barrick-Randgold merger provide \u201ca significant opportunity\u201d for ASX-listed names to acquire assets, according to UBS analysts.<\/p>\n

\u201cAustralian gold producers have stronger balance sheets than their North American peers. We think Evolution and Northern Star are best placed to make accretive acquisitions given their strong track records in this area,\u201d said UBS in a note last month.<\/p>\n

The divestment goals of the planned Newmont-Goldcorp tie-up and the new Barrick-Randgold merger provide \u201ca significant opportunity\u201d for ASX-listed names to acquire assets \u2014 analysts.<\/q><\/p>\n

Market rumours indicate that one of the potential buyers could be Melbourne-based Newcrest Mining (ASX:NCM), especially after Bristow said there was \u201ca very good chance\u201d of some Australian operators becoming involved.<\/p>\n

Another name being passed around is Evolution Mining (ASX:EVN), Australia\u2019s second-biggest gold producer.<\/p>\n

\u201cWe\u2019d certainly be interested if [Barrick] decided to dispose of those assets,\u201d Evolution\u2019s Executive Chairman Jake Klein said Monday in an interview with Bloomberg Television<\/em><\/a>. \u201cThese things are potentially high-quality assets.\u201d<\/p>\n

In the past three years, Evolution has been acquiring projects and mines across Australia, including Barrick\u2019s Cowal operation.<\/p>\n

The company, however, is likely to face competing offers from fellow miners, including Newcrest and Northern Star Resources, as well as from foreign gold producers with interests in Australia, such as AngloGold Ashanti.<\/p>\n

Other than the Super Pit, which Barrick tried to offload in 2017<\/a>, the regional assets up for grabs would include the Porgera mine in PNG, the Tanami underground mine in the Northern Territory, and the Boddington open pit in Western Australia.<\/p>\n

According to analysts, the portfolio could fetch between $5.6 billion and $7 billion, which is exactly what Bristow said the “synergy” benefits of a merger\u00a0with Newmont would generate.<\/p>\n

The potential mega-merger would create a $42 billion-global gold mining mammoth, leaving Newcrest as the world\u2019s No.2 producer of the precious metal, with a current value of about $14 billion.<\/p>\n

Should Newmont choose to go ahead with its planned $10 billion acquisition of Goldcorp<\/a>\u00a0(TSX:G) (NYSE:GG) instead, the Colorado-based firm\u00a0would become the world’s biggest, with Barrick grabbing the second place and Newcrest the third.<\/p>\n

The post Barrick-Newmont merger would leave up to $7B of assets up for grabs<\/a> appeared first on MINING.com<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"

The portfolio would include their Kalgoorlie super pit 50\/50 joint-venture in Western Australia, as well as other regional assets such as Porgera, Tanami and Boddington mines.<\/p>\n

The post Barrick-Newmont merger would leave up to $7B of assets up for grabs<\/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":[421,514,1710,674,404,369,683,684,1020,662,663,664,440,517,428],"tags":[9,15,18,25,48,71,83],"_links":{"self":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1102187"}],"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=1102187"}],"version-history":[{"count":4,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1102187\/revisions"}],"predecessor-version":[{"id":1102250,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1102187\/revisions\/1102250"}],"wp:attachment":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1102187"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1102187"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1102187"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}