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Gold and copper producer Newport Goldcorp announced a $1 billion stock buyback program Monday, which could represent about 3.2% of $NEM shares outstanding. The company also updated on it's gold production.


NEwmont Australia BoddingtonNewmont: Boddington Australia

Newmont Goldcorp Corp. said the $1 billion stock repurchase program is to be completed over the next 12 months

Based on Friday's stock closing price of $38.40, the program implies the buyback of up to 26 million shares, or about 3.2% of the shares outstanding.

Newmont also said Monday it expects 2020 attributable gold production of 6.7 million ounces at an all-in sustaining cost of $975 per ounce, compared with the FactSet gold production consensus of 6.98 million ounces. Longer term, Newmont expects attributable gold production of between 6.5 million to 7.0 million ounces through 2024

 

Newmont Goldcorp Corp NYSE: NEM 

Market Reaction - December 2, 12:49 PM $38.81 ▲ 0.38 (+0.99%)

Newmont's stock has rallied 11.1% year to date, while the VanEck Vectors Gold Miners ETF GDX is run up 28.0% and the S&P 500 is up 25.3%.

All shares repurchased will be retired, resulting in immediate accretion to shareholders by reducing total shares outstanding and improving per share financial performance. Newmont has completed its Goldcorp integration process and is now positioned to realize over $500 million per annum in total cash flow improvements by 2021 from G&A and exploration synergies, supply chain efficiencies, and Full Potential cost and productivity improvements - Newmont

. “Our share repurchase program reflects the confidence we have in our people, our operations and our balance sheet to deliver substantial value upside and returns for our shareholders,” said Tom Palmer, President and Chief Executive Officer. “Working closely with our Board of Directors, we determined that current market conditions, combined with $635 million of expected cash proceeds from the sales of Red Lake and our equity investment in Continental, create a compelling opportunity to initiate our $1 billion share buyback program over the next 12 months whilst we continue to return cash to shareholders through sustainable dividends.”

NEM Global Assets 2019

Newmont Announced Acquiring Goldcorp for $10 billion on January 14, 2019

Newmont Mining Corporation (NEM) agreed to acquire Goldcorp Inc. (GG) for $10 billion in an all-stock deal, which is expected to be completed in the second quarter of 2019.

Under the terms, Newmont will acquire all outstanding Goldcorp equity at an exchange ratio of 0.3280 of a Newmont share and $0.02 for each Goldcorp share, which will represent a 17% premium based on both companies’ 20-day volume weighted average share prices as of January 11, 2019.

The transaction has been approved by the boards of directors of both companies. Closure of the deal is subject to approval by the shareholders of both companies, regulatory approvals in a number of jurisdictions including the EU and Canada, and other customary conditions.

The combined entity will be named Newmont Goldcorp and will be one of the world’s largest gold producers by output. Newmont shareholders will own approx. 65% of the combined company while Goldcorp shareholders will own 35%. The majority of Newmont Goldcorp’s reserves and resources, around 75%, will be located in the Americas with the remaining 15% in Australia and 10% in Ghana.

Newmont Goldcorp plans to divest $1 billion to $1.5 billion in assets over the next two years, and aims to achieve an annual production target of 6-7 million ounces. In 2017, Newmont produced 5.3 million ounces of gold while Goldcorp produced 2.6 million ounces.

Gary Goldberg will be the Chief Executive Officer of Newmont Goldcorp and Tom Palmer will be the President and Chief Operating Officer. Mr. Goldberg will lead the company through the acquisition and integration process, which is expected to be completed for the most part in the fourth quarter of 2019, after which he will retire and Mr. Palmer will become President and CEO.

Newmont Goldcorp’s shares will be traded on the New York Stock Exchange under the ticker symbol NEM and are expected to be listed on the Toronto Stock Exchange following the deal closure. Newmont would be entitled to a $350 million break-fee and Goldcorp would be entitled to a $650 million break-fee, depending on the circumstances.

Newmont’s stock was down 4.5% in morning trade on Monday while Goldcorp’s shares were up 11.5% after the announcement.

About Newmont

Newmont is the world’s leading gold company and a producer of copper, silver, zinc and lead. The Company’s world-class portfolio of assets, prospects and talent is anchored in favorable mining jurisdictions in North America, South America, Australia and Africa. Newmont is the only gold producer listed in the S&P 500 Index and is widely recognized for its principled environmental, social and governance practices. The Company is an industry leader in value creation, supported by robust safety standards, superior execution and technical proficiency. Newmont was founded in 1921 and has been publicly traded since 1925.

Source: Newmont

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