Newmont Goldcorp has announced the successful conclusion of its transaction combining Newmont Mining Corporation and Goldcorp to form the world’s leading gold business.
The resulting company features an unmatched portfolio of assets, prospects and talent. This portfolio includes long-life operations and profitable expansion and exploration options in some of the world’s most favorable mining jurisdictions. Newmont Goldcorp will also offer investors the highest annual dividend and the largest Reserves and Resources per share among senior gold producers.
“We’ve met our goal to become the world’s leading gold business, and we’ll maintain that position by executing our winning strategy,” said Gary J. Goldberg, Chief Executive Officer. “That strategy focuses on constantly improving safety and efficiency at our current operations while we continue to invest in expansions and exploration to fuel next generation production. An equally important part of that strategy is to meet stakeholders’ expectations by continuing to lead the sector in value creation and sustainability performance.”
Tom Palmer, President and Chief Operating Officer, added, “Our proven operating model and shared values set the stage for a successful integration process. Getting this process right is fundamental to realizing the full potential of the Newmont Goldcorp combination. Ultimately, our goal is to leverage a more prolific portfolio and an even richer talent pool to generate superior value over the course of decades.”
Newmont Goldcorp is expected to immediately:
Be accretive to Newmont’s Net Asset Value per share by 27 percent, and to the combined company’s 2020 cash flow per share by 34 percent;
Begin delivering $365 million in expected annual pre-tax synergies, supply chain efficiencies and Full Potential improvements, representing $4.4 billion in Net Present Value (pre-tax);
Target six to seven million ounces of steady gold production over a decades-long time horizon;
Have the largest gold Reserves and Resources in the gold sector, including on a per share basis;
Be located in favorable mining jurisdictions and prolific gold districts on four continents;
Deliver the highest dividend among senior gold producers;
Offer financial flexibility and an investment-grade balance sheet to advance the most promising projects at an Internal Rate of Return (IRR) of at least 15 percent;
Feature a deep bench of accomplished business leaders, technical teams and other talent with extensive mining industry experience; and
Maintain industry leadership in environmental, social and governance performance.
Source: Company Press Release