DENVER – The merger of Newmont Mining and Goldcorp has closed, adding a new name among the ranks of large gold producers – Newmont Goldcorp Corporation.
The combined enterprise features a global portfolio of producing mines – Canada, the United States, South America, Australia, and Africa. The new company had 121.3 million oz. of gold in reserves at the end of 2018. There were 69.4 million contained oz. in measured and indicated resources, plus 31.5 million in the inferred resource.
Annual output in 2018 was about 7.7 million oz. That level of production makes Newmont Goldcorp the world’s largest producer of gold.
The new company has six gold development projects underway. The number of properties at various stages of study is 20. Thinking of the volume of projects in the pipeline, readers will probably conclude that Newmont’s US$10-billion investment is going to pay off very nicely.
Newmont Goldcorp says its outlook is all positive. The combined 2020 cash flow per share is expected to rise by 34%. There are US$365 million pre-tax synergies and efficiencies to be had. Over the next 10 years, annual gold output will be between 6.0 million and 7.0 million oz. Dividends are expected to be the highest among senior gold producers. Finally, the company will benefit from a “deep bench” of business leaders, technical teams and other talent with extensive experience in the mining industry.
The new company has its website up and working at www.NewmontGoldcorp.com. Be sure to read the latest corporate presentation.