{"id":1110701,"date":"2019-04-12T21:13:35","date_gmt":"2019-04-12T21:13:35","guid":{"rendered":"http:\/\/resourceworld.com\/?p=55338"},"modified":"2019-04-12T21:13:35","modified_gmt":"2019-04-12T21:13:35","slug":"newmont-shareholders-ok-goldcorp-deal","status":"publish","type":"post","link":"https:\/\/juniorminingnews.com\/?p=1110701","title":{"rendered":"Newmont shareholders OK Goldcorp deal"},"content":{"rendered":"
\"\"<\/a><\/p>\n

The Eleonore gold mine 320 km north of Matagami in the James Bay region of Quebec. Source: Goldcorp Inc.<\/p>\n<\/div>\n

Newmont Mining Corp. <\/strong>[NEM-NYSE] shareholders have approved the company\u2019s $10 billion takeover of Goldcorp Inc.<\/strong> [G-TSX; GG-NYSE]. The combined company, called Newmont Goldcorp., will rank as the world\u2019s biggest gold producer with assets across the Americas, Africa and Australia.<\/p>\n

About 98% of votes cast at a special meeting were in support of Newmont\u2019s proposal to issue new stock to fund its takeover of Goldcorp, the Denver-based company said in a statement. The same percentage of Goldcorp shareholders have already greenlighted the deal.<\/p>\n

Under the terms of the agreement, Newmont will acquire each Goldcorp share for 0.3280 of a Newmont share and $0.02 cash for each Goldcorp share. Newmont and Goldcorp shareholders will own 65% and 35% of the combined company, respectively.\u00a0 The deal is expected to close on April 18, 2019.<\/p>\n

Once that happens, Newmont Goldcorp expects to begin delivering US$365 million in expected annual pre-tax synergies, supply chain efficiencies and full potential improvements, representing US$4.4 billion in net present value (pre-tax).<\/p>\n

On Friday, Newmont shares rose 0.50% or US$0.18 to US$36.15 on volume of over 5.0 million. The 52-week range is US$29.06 and US$41.98. Newmont is currently the only gold producer listed in the S&P 500 Index. Newmont was founded in 1921 and has been publicly traded since 1925.<\/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 between 6.0 million and 7.0 million ounces of steady gold production over a decades long time horizon.<\/p>\n

The combined entity will also have the largest gold reserves and resources in the gold sector.<\/p>\n

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

Meanwhile, Newmont Goldcorp will 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

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","protected":false},"excerpt":{"rendered":"

Newmont Mining Corp. [NEM-NYSE] shareholders have approved the company’s $10 billion takeover of Goldcorp Inc. [G-TSX; GG-NYSE]. The combined company, called Newmont Goldcorp., will rank as the world’s biggest gold… 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\/1110701"}],"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=1110701"}],"version-history":[{"count":1,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1110701\/revisions"}],"predecessor-version":[{"id":1110702,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1110701\/revisions\/1110702"}],"wp:attachment":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1110701"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1110701"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1110701"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}