Newmont Goldcorp becomes world’s top gold producer as merger concludes

Screenshot: Newmont Goldcorp

Newmont Mining has finalised its merger with Goldcorp to become the world’s leading gold business, three months after securing the $US10 billion ($14 billion) takeover.

The newly combined firm said in a video statement it wasn’t looking to be the “biggest” but was instead determined to be the “best”.

Newmont chose the Goldcorp merger, in favour of Barrick’s proposed $US25 billion offer, for the resulting company’s “unmatched portfolio” of assets, prospects and talent.

The merged company will, however, offer investors the highest annual dividend and largest reserves and resources per share among senior gold producers.

Newmont Goldcorp expects to increase the combined company’s 2020 cashflow a share by 34 per cent and its steady gold production to reach six to seven million ounces over decades.

“We’ve met our goal to become the world’s leading gold business, and we’ll maintain that position by executing our winning strategy,” said newly appointed Newmont Goldcorp chief executive, or former Newmont chief executive, Gary Goldberg.

“That strategy focuses on constantly improving safety and efficiency at our current operations while we continue to invest in expansions and exploration to fuel next generation production.

“An equally important part of that strategy is to meet stakeholders’ expectations by continuing to lead the sector in value creation and sustainability performance.”

The combined company ultimately aims to leverage a more prolific portfolio and an even richer talent pool to generate superior value over the course of decades, president Tom Palmer said.

In Western Australia, Newmont operated the Boddington gold-copper mine, as well as the Kalgoorlie Super Pit in a joint venture (JV) with Barrick Gold.

Newmont was also an operator at the Tanami gold project in the Northern Territory, which could undergo a second expansion to reach a mine life beyond 2028.

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