Fiji Sun

Newmont makes ‘best and final’ offer for Newcrest

- Sources: Mining/Newcrest Feedback: frederica.elbourne@ fijisun.com.fj

Newmont has raised its takeover bid for ASX-listed Newcrest to $29.4 billion, which the US gold giant has labelled its best and final proposal.

The revised offer would see Newcrest shareholde­rs receive 0.400 Newmont shares for each Newcrest share held, with an implied value of $32.87 per share for an overall valuation of $29.4 billion.

This is an increase from a previous indicative proposal in February of 0.380 per share, totalling roughly $24.5 billion, which Newcrest rejected on the grounds that it failed to properly value the company.

The company previously rejected an earlier offer of 0.363 per share.

Newcrest has kept relatively quiet about the new offer; however, it has granted Newmont exclusive due diligence access, essentiall­y allowing a thorough review and audit of all relevant financial informatio­n which, when completed, will enable

Newmont to put forward a binding proposal.

Newcrest Mining Limited was a founding party of the Namosi Joint Venture (NJV).

Veritable Titan

If a future takeover offer is accepted by shareholde­rs, it will make Newcrest – already the largest listed gold company in the world – a veritable titan.

“We are entering a new era in which mining companies must hold themselves to a higher standard of sustainabi­lity and long-term value creation,” Newmont chief executive officer Tom Palmer said. “This transactio­n would strengthen our position as the world’s leading gold company by joining two of the sector’s top senior gold producers and setting the new standard in safe, profitable and responsibl­e mining.

“Together as the clear gold-mining leader, we would be well positioned to generate strong, stable and lasting returns with best-inclass sustainabi­lity performanc­e for decades to come.”

Tom Palmer

Australian-born Palmer has run Newmont since 2019.

The US company already produces seven million ounces of gold per year, more than three times the amount of Newcrest.

Newcrest – originally a Newmont subsidiary spun off in the 1960s – operates mines in Australia, Canada and Papua New Guinea, with the latter including the notable Lihir mine, one of the largest gold mines in the world.

Bagging Newcrest would also further strengthen Newmont’s copper portfolio, increasing annual copper production and adding almost 23,000 tonnes of copper reserves and resources to its asset base.

Not Party To Review

In another developmen­t, Newcrest and its wholly-owned subsidiary, Lihir Gold Limited, were not party to the Revised 2007 Memorandum of Agreement (MOA) or the three original 1995 MOAs.

The company’s comment was in response to media reports where the Papua New Guinea government reminded the company about its oustanding commitment­s.

“The MOA is an agreement between the three tiers of the PNG Government and the Lihirian landowners, and does not include Newcrest,” Newcrest said.

“Newcrest continues to comply

with its obligation­s under its Special Mining Lease and the various agreements it has in place with a multitude of stakeholde­rs for the operation of the Lihir Gold mine, including direct agreements with Lihir’s landholder­s.’’

Australian

 ?? ?? Newmont chief executive officer Tom Palmer
Newmont chief executive officer Tom Palmer

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