Newmont (NEM) Shareholders Approve the Acquisition of Newcrest
Newmont Corporation NEM said that over 96% of the votes cast in a special shareholder meeting on the proposal for issuing Newmont common stock about the planned acquisition of Newcrest Mining Limited were voted in favor of approval.
Tom Palmer, president and CEO of Newmont, expressed the significance of this decision, stating that the shareholders of NEM overwhelmingly voted in favor of this transformational transaction, acknowledging the strategic rationale to create the industry’s most robust portfolio of world-class gold and copper assets. Palmer emphasized the unparalleled platform that would emerge from this acquisition, with top-tier assets managed by exceptional talent in favorable mining jurisdictions. This will likely position Newmont for superior returns in the long term.
The next crucial step will be Newcrest's shareholder vote, scheduled for Friday, Oct 13, 2023The acquisition has already obtained all the necessary regulatory approvals from government authorities. Newmont and Newcrest expect to finalize the transaction in early November, subject to customary closing conditions.
Newmont’s shares have fallen 6.7% in the past year against the industry's 19% rise in the same period.
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This strategic move was initially announced on May 14, 2023, when Newmont unveiled its definitive agreement to acquire Newcrest. This merger aims to create a world-class portfolio of assets, particularly in low-risk mining jurisdictions, with a significant concentration of Tier 1 operations. Upon completion, the combined company will boast a multi-decade production profile from 10 large, long-life, low-cost Tier 1 operations and increased annual copper production, primarily from Australia and Canada.
The merger is expected to yield annual pre-tax synergies of $500 million, achievable within the first 24 months and target at least $2 billion in cash improvements through portfolio optimization in the initial two years after closing.
Newmont Corporation Price and Consensus
Newmont Corporation price-consensus-chart | Newmont Corporation Quote
Zacks Rank & Key Picks
Newmont currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the basic materials space are WestRock Company WRK, sporting a Zacks Rank #1 (Strong Buy) and Air Products and Chemicals, Inc. APD and The Andersons Inc. ANDE, both carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
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