Newmont makes nonbinding offer for Australia's Newcrest

6th February 2023

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia


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PERTH ( – Gold major Newcrest Mining on Monday confirmed it had received a conditional and non-binding indicative proposal from major Newmont, valued at about A$24-billion.

Under the proposal, Newcrest shareholders would receive 0.38 Newmont shares for every Newcrest share held. This would result in the combined company being 30% owned by Newcrest and 70% owned by Newmont.

Newmont said in a statement that the offer represents a compelling opportunity for the shareholders of both companies to share in the upside of putting together two complementary businesses.

“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 Newmont president and CEO Tom Palmer.

“The proposed transaction would join industry-leading portfolios of assets and projects to create long-term value across the combined global business, and we welcome the consideration of Newcrest’s board of directors.”

The indicative proposal follows the prior receipt of an indicative, non-binding and conditional proposal at an exchange ratio of 0.363 Newmont shares for each Newcrest share, which the Newcrest board previously said would not deliver sufficiently compelling value to Newcrest shareholders and on that basis, and subsequently rejected the earlier proposal.

Newcrest on Monday said that its board of directors, along with its financial and legal advisers, will now consider the new offer and the company has urged shareholders not to take any action.

Newmont’s proposal is subject to certain customary conditions, including due diligence to the satisfaction of both parties, entry into a scheme implementation agreement and a recommendation from the Newcrest board of directors that Newcrest shareholders vote in favour of the proposal.

Newmont is one of the world’s largest gold producers, and also produces copper, silver, zinc and lead. The company holds assets in both North and South America, Australia and Africa, and is the only gold producer listed in the S&P 500 Index. In the third quarter of 2022, Newmont produced 1.49-million attributable ounces of gold and 299 000 attributed gold equivalent ounces from co-products.

Newcrest owns a portfolio of predominantly low cost, long-life mines in Australia, Canada, and Papua New Guinea. In the December quarter, Newcrest produced 512 000 oz and 35 000 t of copper at an all-in sustaining cost of $1 082/oz.

Edited by Creamer Media Reporter


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