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Bloomberg: Goldcorp considering deal for some Newmont Africa mines

  • Goldcorp (GG -0.7%) explored the possibility of buying African gold mines from Newmont Mining (NEM +0.1%) earlier this year during merger talks between Newmont and Barrick Gold (NYSE:ABX), Bloomberg reports.
  • Goldcorp expressed interest in acquiring mines in Ghana; such a move would mark a departure for GG, which only has mines in the Americas and whose CEO has said the miner is focused on large deposits with low costs, long lives and locations with low political risk.
  • NEM’s Ahafo and Akyem mines in Ghana accounted for 12% of company revenue in 2013.
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Comments (2)
  • james.
    , contributor
    Comments (1090) | Send Message
     
    Now that Gold price has increased since then, GG needs to up the ante. How much is GG willing to pay NEM for these Revenues of about $840,000,000 per year, yielding profits of about $180,000,000 per year, which is $0.36 EPS for NEM. ? July 18, 2014.
    18 Jul 2014, 06:00 PM Reply Like
  • james.
    , contributor
    Comments (1090) | Send Message
     
    I strongly recommend an outright purchase of NEM today, now that Mr. Joko Widodo has been elected the new President of Indonesia today by 53% of the vote cast. Why ? Mr. Joko Widodo is strongly pro-business, as he was a Business Man himself before being elected Governor of Jakarta in 2012; therefore, Mr. Joko Widodo will change the current law in Indonesia which caused NEM to institute a Force Majeure at its huge Copper Mine in Indonesia in early June 2014 on its Copper Concentrate Production in accordance with its CoW (Contract of Work) signed in 1986, and then file for Arbitration as per the NEM CoW. This Force Majeure allows NEM to pay its Indonesian Workers only 20% of their normal pay until the end of 2014 when all stored Copper Concentrate will have been shipped to the local Copper Refinery. This brilliant NEM Force Majeure will add approximately $0.10 EPS to the NEM Q3 and Q4 Earnings Reports. Look to it ! July 22, 2014.
    22 Jul 2014, 01:39 PM Reply Like
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