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Senior gold miner Newcrest completes acquisition of Canada's Pretium Resources

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(Kitco News) - Newcrest Mining (TSX: NCM), one of the world's largest gold producers, announced Wednesday that it has completed the acquisition of Canada's Pretium Resources (TSX: PVG).

Pretium owns the Brucejack mine in the highly prospective Golden Triangle region of British Columbia, Canada. Brucejack began commercial production in July 2017 and is one of the highest-grade operating gold mines in the world.

Brucejack is expected to produce between 95 and 115 thousand ounces of gold during Newcrest's ownership in FY22.

Managing Director and CEO Sandeep Biswas said, "We are very excited to add Brucejack to Newcrest's portfolio, which now includes exposure to six Tier 1 assets. Through this acquisition and the continued development of our outstanding organic growth pipeline, Newcrest's base case gold production is expected to remain strong until at least 2030, and we have a range of further upside opportunities being progressed across the portfolio."

Importantly, he pointed out that this production profile is also expected to drive a major reduction in all-in sustaining costs, "which makes Newcrest unique in the industry."

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"In parallel, our exploration team will be progressing an extensive drilling campaign across the Brucejack mineral claims which make up one of the largest epithermal footprints we have ever seen. The land package is largely unexplored and very early in its life, and we see significant upside potential beyond Valley of the Kings and Golden Marmot," he added.

Following the transaction, Pretium will be delisted from the New York Stock Exchange and Toronto Stock Exchange.

Newcrest is the largest gold producer listed on the Australian Securities Exchange and one of the world's largest gold mining companies.

Newcrest owns and operates a portfolio of operating mines and exploration projects located in Australia, Canada and Papua New Guinea. The company's current gold reserves represent more than 24 years of production at current rates.

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