Newmont Mining announced today that it will combine with Goldcorp to create the world’s largest gold mining company. In a deal valued at US$10 billion, Newmont shareholders will retain 65 percent of the new company – to be listed on the NYSE and TSX as Newmont Goldcorp – while Goldcorp shareholders will retain 35 percent.
The company will combine Goldcorp’s operations in Canada, Mexico, the Dominican Republic and Argentina with Newmont operations in the US, Peru, Suriname, Australia and Ghana. The deal will include Goldcorp’s Peñasquito mine, which is Mexico’s largest open-pit mine and one of the biggest silver and gold producers in the world.
Newmont staff will account for two thirds of the senior executives, with Newmont CEO Gary Goldberg and Newmont President and COO Tom Palmer continuing to serve in those positions in Newmont Goldcorp. Newmont Chairperson of the Board Noreen Doyle will retain her position at the new company, while Goldcorp Chairperson of the Board Ian Telfer will assume the position of Deputy Chairperson.
The transaction will combine Newmont’s reserves of 68.5 million ounces of gold with Goldcorp’s 52.8 million ounces for a total of 121.3 million ounces. Previous leader Barrick reported reserves of 64.4 million ounces at year-end 2017, and this increased to 78 million ounces of proven and probable gold reserves due to its merger with South Africa-based Randgold. Newmont Goldcorp will target sustainable production of 6-7 million oz/y.
“This combination will create the world’s leading gold business with the best assets, people, prospects and value-creation opportunities,” said Goldberg in the announcement. “We have a proven strategy and disciplined implementation plan to realize the full value of the combination, including an exceptional pool of talented mining professionals, stable and profitable gold production of six to seven million ounces over a decades-long time horizon, the sector’s largest gold Reserve and Resource base, and a leading project and exploration pipeline.”