Newmont Corporation has announced the completion of the acquisition of Newcrest Mining Limited to create what it says is the world’s leading gold company with robust copper production.
Featuring more than half of the world’s Tier 1 assets, according to the company, Newmont’s unmatched portfolio of long-life operations, value-accretive projects, abundant exploration opportunities, and world-class talent will underpin years of profitable production in the world’s most favorable jurisdictions, it says. This expanded portfolio will include operations with scale, margin and mine life to generate robust and lasting returns for decades, while supporting best-in-class sustainability performance.
“Today marks a historic milestone in our company and the industry with the successful completion of this transformational acquisition of Newcrest by Newmont,” Tom Palmer, Newmont’s President and Chief Executive Officer, 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.”
With the transaction now complete, Newmont’s acquisition of Newcrest is expected to:
- Strengthen Newmont’s position as the responsible gold mining leader through the combination of high-quality operations, projects and reserves concentrated in low-risk jurisdictions, including 10 Tier 1 operations to support decades of safe, profitable and responsible gold and copper production;
- Generate annual pre-tax synergies of $500 million, expected to be achieved within the first 24 months, together with at least $2 billion in cash improvements through portfolio optimisation in the first two years after closing;
- Maintain Newmont’s capital allocation priorities and non-binding dividend payout (since closing the Goldcorp transaction in 2019, Newmont has paid more than $5 billion in dividends, further demonstrating its commitment to our shareholders, it says);
- Feature a deep bench of experienced leaders, subject matter experts and existing regional teams in Australia and Canada with extensive mining industry experience; and
- Maintain industry leadership in environmental, social and governance performance.