Newcrest Mining disappears from the ASX, having been officially swallowed-up by gold giant Newmont.
The takeover creates a veritable gold behemoth in control of over half of the world’s Tier-1 gold assets. 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. This puts Newmont in control of four out of six of Australia’s largest gold mines.
Other additions include the Brucejack and Red Chris operations in Canada, which are located nearby Newmont’s Saddle North project. Newmont president and chief executive officer Tom Palmer called this combination of gold assets a “golden triangle”.
The Lihir operation in Papua New Guinea will also fall under Newmont’s control.
Newmont expects to generate pre-tax synergies of $500 million, and at least $2 billion in cash improvements, in the first two years after closing the deal as it optimises its portfolio of assets.
“Today marks a historic milestone in our company and the industry with the successful completion of this transformational acquisition of Newcrest by Newmont,” Palmer said.
“Our attention now turns to safely, efficiently, and responsibly integrating Newcrest’s assets and people into Newmont’s proven operating model, so we can accelerate the delivery of our value-focused strategy for all our stakeholders.”
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