Newmont acquiring Goldcorp: The stars are aligning for a successful 2019

    Natural Gold Nuggets and Dust - California, United States

    Natural Gold Nuggets and Dust - California, United StatesBarrick Gold Corp. acquiring Randgold Resources Ltd. in September 2018. Today Newmont Mining Corp. announcing its intention to acquire Goldcorp Inc. to become the top gold miner with a market capitalization of US$26 billion.

    The deal announced means Newmont will exchange 0.328 of a share and two cents in cash for each of Goldcorp’s outstanding common shares. This equates to $11.46 per share, giving a premium of approximately 18% on Goldcorp’s closing price on Friday on the New York Stock Exchange.

    If and when the latter merger closes the two newcos will weigh 34% of the FTSE Gold Mines Index while gold is trading south of a single point from its golden cross sitting at US$1248.

    This is NOT a coincidence. Of course, bigger is not better but this is not the point. A more dovish Federal Reserve along with inflation anchored in the economical landscape should cement the favorable conditions to lift the price of gold. The stars are aligned for a successful year in 2019.

    MiningIR host 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.

    Keep up to date with the latest news

    Enter your email below to get the latest news and insights from MiningIR

    Thank you for subscribing.


    Please enter your comment!
    Please enter your name here