The world’s largest gold miner has been finally created after shareholders overnight Thursday in Newmont Mining greenlighted the $US10 billion takeover of Goldcorp.
The new company will be called Newmont Goldcorp and will overtake Barrick Gold Corp as the world’s biggest gold producer, churning out 6 million to 7 million ounces of gold annually a years compared with Barrick’s forecast 5.1 million to 5.6 million ounces for 2019.
The new company will own assets across the Americas, Africa and Australia (50% of the Super Pit near Kalgoorlie, the Boddington mine, also in WA and the Tanami mine in central Australia).
Newmont Goldcorp will look to sell between $US1 billion and $US1.5 billion of assets to focus on its most promising operations and a joint venture with rival Barrick in Nevada.
This, combined with mines Barrick plans to sell in the wake of its acquisition of Randgold Resources, spark a series of deals in the next year as Newmont looks to sell assets such as the 50% of the Super Pit and the Boddington mine.
All of the Super Pit could be sold as Barrick, the owner of the other 50% is said to be a possible seller.
The vote in a shareholder meeting in Denver will see Newmont shareholders receive an 88 cents a share special dividend to holders of Newmont shares as at April 17.
About 98% of votes at a special meeting were in support of Newmont’s proposal to issue new stock to fund its takeover of Goldcorp. Goldcorp’s investors approved the deal last week.
