Newmont Goldcorp Corp. is now the official name of the company created with the finalization of the merger of Newmont Mining Corp. and Goldcorp Inc. on April 18.
The nearly $10 billion deal creates world’s largest gold producer, with estimated gold production of 6 million to 7 million ounces of gold each year well into the future.
“We’ve met our goal to become the world’s leading gold business, and we’ll maintain that position by executing our winning strategy,” said Newmont Goldcorp’s chief executive officer, Gary Goldberg. “That strategy focuses on constantly improving safety and efficiency at our current operations while we continue to invest in expansions and exploration to fuel next generation production.
“An equally important part of that strategy is to meet stakeholders’ expectations by continuing to lead the sector in value creation and sustainability performance,” Goldberg said in the announcement that the deal was final.
Newmont Goldcorp will continue to trade on the New York Stock Exchange under the NEM symbol. Newmont shares closed April 18 at $33.04, down $1.14, but the shares were still listed as Newmont Mining. Newmont Goldcorp also will trade on the Toronto Stock Exchange under the symbol NGT.
Goldcorp stated in an April 18 news release that Goldcorp shares were expected to be delisted from the NYSE before the market opened April 18 and from the Toronto Stock Exchange after the market closes on April 22.
Newmont Goldcorp is the name now showing on the Newmont and Goldcorp internet sites.
Newmont Goldcorp’s president and chief operating officer, Tom Palmer, said in the announcement that getting the integration process right is “fundamental to realizing the full potential of the Newmont Goldcorp combination. Ultimately, our goal is to leverage a more prolific portfolio and an even richer talent pool to generate superior value over the course of decades.”
Newmont and Goldcorp continued pressing for their merger plan even as Barrick Gold Corp. was proposing a merger of Newmont and Barrick that left Goldcorp out in the cold. Newmont and Barrick later agreed to a joint venture of Nevada operations instead of a full merger.
The Newmont Goldcorp and Barrick joint venture is still in the completion stages, but once the agreement is finalized, Barrick will be the operator of the Nevada mines now run by Barrick and Newmont. Barrick stated in a production report April 18 that the completion of the joint venture is “rapidly progressing.”
Newmont Goldcorp is relocating North American regional headquarters from Elko to Vancouver, which was headquarters for Goldcorp. Greenwood Village, Colo., will be the global headquarters for Newmont Goldcorp.
Newmont Goldcorp’s group executive for corporate communications, Omar Jabara, said on April 18 the Elko office will continue functioning until the joint venture is in effect, and the office may remain in use during the transition.
“I am not sure if the Elko office will continue to be the office for the JV. I’m not clear on that at this point,” he said.
Barrick, which combined with Randgold Resources on Jan. 1, also has an office facility in Elko, but the company’s Las Vegas office is the North American regional headquarters.
Shareholders of Newmont and Goldcorp approved the combination earlier this month, opening the way for Newmont’s promised dividend of 88 cents per share on May 1 to Newmont shareholders on record as of April 17, before the finalization of the merger.
At the time the incentive dividend was offered, Goldberg said it was a benefit from the agreement with Barrick for the joint venture in Nevada. Barrick will have 61.5 percent ownership of the joint venture. Newmont Goldcorp will have 38.5 percent ownership.
The joint venture was expected to create $500 million in average annual pretax synergies in the first five full years of the JV, which focuses only on Nevada mines. Newmont Goldcorp will continue to operate the Cripple Creek gold mine in Colorado.
With the Newmont-Goldcorp merger, the new company has operations in the United States, Canada, Mexico Argentina, Australia, the Dominican Republic, Ghana, Peru and Suriname.
Newmont Goldcorp expects annual pretax synergies of $365 million, as well as supply-chain efficiencies and have the largest gold reserves and resources in the gold sector.
Newmont earlier announced the appointments of executives to take over when Newmont Goldcorp became official, including Palmer, who expected to become CEO when Goldberg expects to retire toward the end of this year.