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‘Superior returns for decades’: Newmont sitting pretty

Newmont shareholders

Newmont Corporation has received near-unanimous approval from its shareholders regarding the Newcrest acquisition.

The major gold and copper miner held a special shareholder meeting on Wednesday, where 96 per cent of Newmont shareholders voted in favour of the takeover.

Newmont president and chief executive officer Tom Palmer said this result validated the company’s growth aspirations.

“Recognising the strategic rationale to create the industry’s strongest portfolio of world class gold and copper assets, Newmont’s shareholders overwhelmingly voted in favour of this transformational transaction,” Palmer said.

“This unrivalled platform, featuring the industry’s best talent running the highest concentration of Tier-1 assets in the most favourable jurisdictions, uniquely positions Newmont to generate superior returns for decades.”

Newmont entered into a definitive agreement to acquire Newcrest in May, which was the culmination of months of work to finetune the transaction. Newmont’s takeover bid first became public in early-February, when an offer comprising 0.38 Newmont shares for each Newcrest share was tabled.

The binding agreement comprised 0.4 Newmont shares for each Newcrest share.

The enlarged Newmont, which sees foreign ownership of Australian gold assets rise above 50 per cent, will oversee 10 “large, long-life, low-cost Tier-1” operations across the world.

Newmont already owned the Boddington and Tanami gold operations in Australia and will now add Cadia and Telfer to the fold. Other additions include the Brucejack and Red Chris operations in Canada, as well as the Lihir operation in Papua New Guinea.

Newmont said the transaction is set to unlock $500 million of annual pre-tax synergies, with at least $2 billion of cash improvements possible across the first two years through portfolio optimisation.

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