The previously announced acquisition by Newmont of all of the issued and outstanding common shares of Goldcorp in exchange for 0.3280 of a share of Newmont common stock and $0.02 in cash for each Goldcorp common share in a transaction valued at approximately $10 billion as of the date of announcement of the transaction. Receipt of the interim order allows Goldcorp to hold its shareholder meeting on April 4, 2019 and is a necessary step toward obtaining a final order from the Court that is a condition to closing the acquisition.
The combination of the two companies will create an unmatched portfolio of world-class operations, projects, Reserves, exploration opportunities, and talent. On day one after the transaction closes, which is expected in the second quarter, Newmont Goldcorp will:
Be immediately value-accretive to Newmont’s Net Asset Value and cash flow per share;
Generate an estimated $75 per ounce in Full Potential cost and efficiency improvements, representing annual anticipated benefits of approximately $165 million per year;
Create a combined $265 million in expected annual pre-tax synergies and Full Potential benefits representing value creation potential of over $2.5 billion;
Target 6-7 million ounces of steady-state 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 generating a targeted Internal Rate of Return of at least 15 percent;
Feature a deep bench of accomplished business leaders and high-performing technical teams and other talent with extensive mining industry experience; and
Maintain industry leadership in environmental, social and governance performance.
Source: Company Press Release
