news

Gold mining M&A is on a roll with Newmont announcing $16.9 billion bid for Newcrest Mining

Kitco Media
By Michael McCrae
Published
Updated
Kitco News
The Leading News Source in Precious Metals

Kitco NEWS has a diverse team of journalists reporting on the economy, stock markets, commodities, cryptocurrencies, mining and metals with accuracy and objectivity. Our goal is to help people make informed market decisions through in-depth reporting, daily market roundups, interviews with prominent industry figures, comprehensive coverage (often exclusive) of important industry events and analyses of market-affecting developments.

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."

Kitco correspondent said that "Au M&A is on."

Kitco Media

Michael McCrae

Michael McCrae is leading Kitco's coverage of the mining sector. McCrae, who has both an MBA and CMA, knows how to build digital media properties. He was co-founder and publisher of MINING.com, an award-winning news site. Before coming to media, McCrae worked in IT and banking. Please reach out: mmccrae@kitco.com or (514) 670-1383. You can also follow him at @michaelmccrae.

Mdi Earth Logo

Share

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.