Newcrest Rejects Newmont’s Initial Bid

The world’s largest gold producer, Newmont, has its eye on Newcrest, which operates several
Tier 1 gold mines, including the Cadia Hill mine (above) in New South Wales, Australia.
(Photo: Newcrest)
Newcrest Mining Ltd. board said it had considered Newmont Corp.’s proposal to acquire the company and it has decided unanimously to reject the offer. However, the Newcrest board left the door open saying it is prepared to provide access to limited, non-public information on a non-exclusive basis to determine if Newmont can provide an improved proposal that appropriately reflects the value of Newcrest.

Newmont’s A$24 billion ($16.7 billion) proposal offered 0.38 Newmont shares per Newcrest share, which would result in the combined company 30% owned by Newcrest and 70% owned by Newmont. The world’s largest gold miner, Newmont operates a portfolio of world-class gold mines, located in North America, South America, Australia, and Africa. With mines located in Australia, Canada and Papua New Guinea, Newcrest owns and operates a portfolio of predominantly low-cost, long-life operations and has a strong pipeline of brownfields and greenfield exploration projects.

“We believe a combination of Newmont and Newcrest presents a powerful value proposition to our respective shareholders, workforce and the communities in which we operate,” said Tom Palmer, president and CEO of Newmont. “The proposed transaction would join industry-leading portfolios of assets and projects to create long-term value across the combined global business.”

As featured in Womp 2023 Vol 03 -