Gold mining M&A is on a roll with Newmont announcing $16.9 billion bid for Newcrest Mining
Australian markets are cheering the news that the world's biggest gold miner, Newmont, has made a bid to acquire Newcrest Mining.
Today Newmont (NYSE:NEM) confirmed it has submitted a non-binding proposal to acquire 100% of Newcrest Mining.
Newcrest, the world's seventh biggest gold miner, was up 12% to A$25.16 as of mid-afternoon Sydney time. Reuters values the deal at $16.9 billion. Gold mining M&A is on a roll. In the fall Agnico Eagle, Pan American announced plans to buy Yamana in $4.8 billion deal.
In a news release, Newcrest said it was considering the proposal. Newcrest CEO Sandeep Biswas retired from the company in December. The company was looking for a permanent successor.
Newcrest has been investing heavily in northern British Columbia, also known as the Golden Triangle. In the last decade it acquired Imperial Metals Red Chris Mine. In 2021 it acquired Pretium. Newmont has also been busy in the region, acquiring GT Gold for just under C$400 million in 2021.
Newmont is based in Colorado, U.S. Newcrest Mining is headquartered in Melbourne, Australia.
Newmont CEO Tom Palmer understands the Australian mining scene well. He earned his mining degrees in Australia. He then had a 20-year career at Rio Tinto before joining Newmont.
In a tweet Tyron Breytenbach, mining equity analyst and SVP at Aris Gold, called the deal "HUUUGE."
HUUUGE - the consolidation continues as does the vacuum in the mid-tier gold producer space…..an interesting void for companies like $ARIS. I can’t see portfolio managers outperforming by owning 1 or 2 super majors https://t.co/DEAKGCCaTn— Tyron B (@Tyronsgold) February 5, 2023
Kitco correspondent said that "Au M&A is on."
Boom! $Nem @NewmontCorp going for @NewcrestMining. Au M&A is on. https://t.co/KzqWBQsz1k— Paul Harris, mining content provider (@PaulHarrisGold) February 6, 2023