Newmont Doubles Copper Reserves with Newcrest Acquisition

December 12, 2023

Newmont Corporation

by James Hyland, MiningIR

In a landmark $15 billion transaction, Newmont Corporation has acquired Newcrest Mining Limited, creating the world’s leading gold mining enterprise. This acquisition significantly enhances Newmont’s portfolio, doubling its exposure to copper reserves alongside gold. Newmont now boasts 50 billion pounds of copper reserves, and Newcrest contributes an additional 42 billion pounds from the Wafi-Golpu project. Tom Palmer, President and CEO of Newmont Corporation, has expressed confidence in this strategic move, stating its importance in establishing Newmont’s position as a global leader in responsible mining practices. The acquisition not only bolsters Newmont’s resources but also solidifies its commitment to environmental, social, and governance excellence, promising significant synergies and growth.

“Today marks a historic milestone in our company and the industry with the successful completion of this transformational acquisition of Newcrest by Newmont,” said Tom Palmer, Newmont’s President and Chief Executive Officer. “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.”

Tom Palmer, Newmont’s President and Chief Executive Officer

This move is expected to consolidate Newmont’s status as a leader in responsible gold mining, with a focus on high-quality operations and projects in low-risk areas. The acquisition adds 10 Tier 1 operations, ensuring long-term, profitable, and sustainable gold and copper production. Financially, the merger is anticipated to generate $500 million in pre-tax synergies within the first 24 months and achieve $2 billion in cash improvements through portfolio optimization in the initial two years. Furthermore, Newmont’s commitment to shareholder value is reinforced through its balanced capital allocation priorities and continued dividend payouts, which have exceeded $5 billion since the Goldcorp transaction in 2019. The acquisition also brings together a team of experienced leaders and mining industry experts from Australia and Canada.

Wafi-Golpu Project, Papua New Guinea

The Wafi-Golpu project, located in Papua New Guinea, is a significant gold and copper deposit. It represents a joint venture between Newcrest Mining and Harmony Gold. This project is recognized for its substantial potential due to its large-scale mineral deposits, making it a key asset in the global mining industry. The development of Wafi-Golpu is expected to enhance the production capabilities of the companies involved, contributing to their growth in the gold and copper sectors.

Newmont is the world’s leading gold company and a producer of copper, zinc, lead, and silver. The Company’s world-class portfolio of assets, prospects and talent is anchored in favorable mining jurisdictions in Africa, Australia, Latin America & Caribbean, North America, and Papua New Guinea. Newmont is the only gold producer listed in the S&P 500 Index and is widely recognized for its principled environmental, social, and governance practices. The Company is an industry leader in value creation, supported by robust safety standards, superior execution, and technical expertise. Newmont was founded in 1921 and has been publicly traded since 1925.

Note regarding Toronto stock exchange approval

In obtaining Toronto Stock Exchange (“TSX”) approval, Newmont Corporation has relied on the “Eligible International Interlisted Issuer” exemption as set out in Section 602.1 of the TSX Company Manual to satisfy its obligations to the TSX in connection with its acquisition of Newcrest Mining Limited.

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MiningIR hosts a variety of articles from a range of sources. Our content, while interesting, should not be considered as formal financial advice. Always seek professional guidance and consult a range of sources before investing.
James Hyland, MiningIR