Gold Miner Newmont's Proposed Newcrest Acquisition Outlined

Researched by Industrial Info Resources (Sugar Land, Texas)--The chief executive officer of Newmont Corporation (NYSE:NEM) (Greenwood Village, Colorado) on Thursday gave an update on the gold-mining major's bid to acquire Newcrest Mining Limited (Melbourne, Australia).

Speaking during Newmont's first-quarter earnings conference call, Tom Palmer gave an overview of his company's proposal to acquire Newcrest in an all-share transaction now valued at $19.5 billion. Newmont first confirmed a non-binding proposal to combine with Newcrest on February 5, which was rejected by Newcrest 10 days later. Following a face-to-face meeting between Newmont and Newcrest officials in mid-March, Newmont submitted a "best-and-final" proposal on April 7 to acquire Newcrest. Three days later Newcrest agreed to grant a period of "confirmatory due diligence to enable Newmont to put forward a binding proposal." The due diligence period runs through May 11.

If the deal goes through, Newmont will acquire Newcrest's five operations across the globe upon the regulatory approval of Australia, the U.S., Papua New Guinea and Canada, Palmer said.

Newmont reported first-quarter net income of $363 million, down from $469 million reported in the first quarter of 2022.

Attributable gold production for the just-ended quarter decreased 5% to 1.27 million ounces from the prior-year quarter primarily due to lower mill recovery and ore grade milled at the company's Peñasquito gold-silver operations in Mexico as a result of planned mine sequencing, the impact of the 32-day mill shutdown at the Tanami mine in Australia due to record rainfall, and lower production at the Nevada Gold Mines operation in the U.S.

Industrial Info is tracking 27 active capital projects from Newmont, worth $11.16 billion. Subscribers to Industrial Info's Global Marketing Intelligence (GMI) Metals & Minerals Project Database can click here for the project reports.

Newmont reported its capital expenditures increased 20% from the prior-year quarter to $526 million primarily due to higher sustaining capital spend. Development capital expenditures in 2023 primarily relate to the Tanami Expansion 2 project in Australia, Yanacocha Sulfides in Peru, Ahafo North in Ghana, Pamour in Canada and the Cerro Negro District Expansion 1 in Argentina.

Subscribers can click here for the Tanami Expansion 2 project report; click here for the Yanacocha Sulphide Copper-Gold-Silver Mine Life Extension project report; click here for the Ahafo North grassroot gold mine project report; click here for the Pamour project report, and click here for the Cerro Negro District Expansion 1 project report.

Industrial Info is tracking 24 active capital projects from Newcrest, worth $4.3 billion. Subscribers can click here for the project reports.

Subscribers can click here for all project reports mentioned in this article and click here for the related plant profiles.

Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 Trillion (USD).