Jul. 27, 2015, 10:45 AM
- Newmont Mining (NEM +0.8%) agrees to sell its 60% stake in the Valcambi gold refinery in Switzerland to a subsidiary of Indian jewelry company Rajesh Exports Ltd. for $119M
- NEM says the sale is part of its plan to get back to its basics after buying its equity interest in the refinery 11 years ago.
- Rajesh, the world's largest gold jewelry maker, says Valcambi's technology will help raise the capacity of its Indian refinery to 200 metric tons/year next year from 80 metric tons currently.
Apr. 13, 2015, 7:00 AM
- AngloGold Ashanti (NYSE:AU) is entering second-round talks with Newmont Mining (NYSE:NEM) and Kinross Gold (NYSE:KGC) for its Cripple Creek & Victor mine in the U.S., FT reports.
- Iamgold (NYSE:IAG) and Goldcorp (NYSE:GG) have also expressed interest for part or all of Cripple Creek.
- AngloGold says the sale is part of an "objective to simplify and improve the overall quality of its portfolio." It could also raise up to $1B and help the South African group cut its debt after a plan for a rights issue failed last year.
- AU -1.4% premarket
Sep. 12, 2014, 3:54 AM
- Fresnillo (OTCPK:FNLPF) says it will buy the 44% stake it doesn't already own in its Penmont joint venture from Newmont Mining (NYSE:NEM), and expects the $450M deal to add to earnings immediately.
- "Acquiring full control of the Herradura and Noche Buena mines and the key exploration assets in the JV should enable us...to increase our target of reaching 500K ounces of attributable gold production by 2018 to 750K ounces," says Fresnillo CEO Octavio Alvidrez.
Aug. 7, 2014, 2:24 AM
- Newmont Mining (NYSE:NEM) is expressing interest for restarting merger talks with Barrick Gold (NYSE:ABX), after CEO Gary Goldberg announced that he was open to resuming discussions.
- Goldberg, however, says he has not heard from the company since April, when the merger talks between the two global gold miners collapsed.
Apr. 28, 2014, 11:49 AM
- Newmont Mining (NEM -6.3%) is blaming Barrick Gold (ABX -2.1%) for the collapse of merger talks between the two companies, with NEM Chairman Vincent Calarco saying ABX co-chair John Thornton told him twice last Thursday that the process was "dead."
- The latest round of talks appears to have ended acrimoniously, with NEM saying in a letter to ABX that a constructive, respectful relationship did not exist between the two companies, and also did not like that ABX Chairman Peter Munk said in a newspaper interview that NEM was "extremely bureaucratic and not shareholder friendly."
- Speculation about a possible hostile bid by ABX could heat up, but Munk has said he would be reluctant because of the potentially large premium he would have to pay.
Apr. 28, 2014, 7:57 AM
- Barrick Gold (ABX) says Newmont Mining (NEM) has terminated merger discussions, which have been widely reported during the last week.
- ABX says that while it believes a merger would be in the best interest of shareholders, NEM's board has determined that NEM is better off remaining independent.
- NEM -5.3%, ABX +0.3% premarket.
Apr. 22, 2014, 3:21 PM
- Peter Munk, stepping down next week as chairman of Barrick Gold (ABX +1.7%), hails the potential benefits of a merger with Newmont Mining (NEM -0.4%), saying investors should welcome the cost cuts and lower political risk that a combination could deliver.
- Munk tells FT there are “obviously synergies available” from a potential combination of ABX and NEM, pointing out that the two companies had many assets “cheek by jowl” in Nevada, the top U.S. gold producing state.
- Such comments could be an indication the companies are keeping open the possibility of resuming high-level negotiations, although talks would be unlikely to happen before NEM's annual general meeting Wednesday or ABX's annual meeting next week.
- Deutsche Bank analysts wonder if the merger report was “a trial balloon... a matter of posturing to allow market participants an opportunity to opine and stock prices time to reflect a merger scenario."
Apr. 21, 2014, 4:59 PM
- The bond market is rooting for a merger of Newmont Mining (NEM) and Barrick Gold (ABX), sending bond prices higher amid reports the companies have recently explored a merger, which could help shore up their finances while gold prices are down.
- NEM debt maturing in 2042 was the second-most-traded U.S. corporate bond today, with ~$65M of bonds changing hands, trading with a yield of ~5.90% vs. ~6.15% earlier this month; ABX debt maturing in 2043 was yielding 5.64%, down from ~5.80% earlier in the month.
- Bonds from investment-grade metals and mining companies have performed well YTD, returning 4.51% vs. 3.59% for investment-grade companies overall.
Apr. 21, 2014, 2:45 PM
- Newmont Mining (NEM +6%) shares are on the move because of a deal that isn't happening - at least not yet; WSJ reported Friday that NEM was in advanced merger talks with rival Barrick Gold (ABX -3.5%) that had broken down.
- J.P. Morgan hopes a deal happens: With overlaps in Australia and Peru plus bigger buying power helping to drive down costs, it thinks the combined entity could claim as much as $3B in savings, improve free cash flows and better service combined debt.
- However, Cowen analysts see little benefit for ABX shareholders in such a merger: construction of Donlin, Goldrush, and the completion of Pascua Lama during 2016-19 would require additional balance sheet size, which could be the underlying motivation for a merger, but as with past mergers between the largest gold producers, it does not believe that being the biggest creates significant value for the shareholder.
Apr. 2, 2014, 6:40 PM
- Yamana Gold (AUY) looks to have captured a huge prize in the Malartic gold mine via the acquisition of a 50% stake in Osisko Mining's (OSKFF) mining and exploration assets, but analysts are skeptical about AUY effectively paying a premium without gaining a controlling interest in the mine itself.
- Cowen analyst Adam Graff approves of the deal as it would help generate some tax savings for AUY in Canada, but he doubts the savings will offset the negative impact of the purchase premium.
- Investor Adrian Day says the implied price AUY would pay doesn't look grossly high, but the deal structure, where Yamana will not get control, is unusual; if hostile takeover bidder Goldcorp (GG) comes back with a better offer, he thinks many shareholders will find it easier to wrap their heads around than AUY's deal.
- Analysts had not expected another mining company to challenge Goldcorp, and some see a higher bid coming: "They have been chasing this asset for five years and there is no reason they would let it slip through their fingers."
- AUY shares -2.2% on the day, but most gold miners gained: OSKFF +7.7%, GG +2%, NGD +4.4%, ABX +4%, AGI +4%, NEM +3.3%, ANV +3.3%, NG +3%, GFI +2.7%, KGC +2.6%.
Dec. 4, 2013, 5:11 PM
Nov. 27, 2013, 7:18 AM
- Teck Resources (TCK), Newmont Mining (NEM), Blackstone (BX) and Magris Resources, a firm led by former Barrick CEO Aaron Regent, have joined together to bid for Glencore Xstrata's (GLCNF) Las Bambas copper mine in Peru.
- Initial bids for the project came it at $6B, with the next round due in December.
- The frontrunner has so far been China's Minmetals (MMETY), especially given the country's need for copper.
- Glencore Xstrata is selling Las Bambas as part of the conditions that China gave for approving Glencore's merger with Xstrata.
Jun. 26, 2013, 10:27 AM
Newcrest Mining (NCMGF.PK) has become so cheap since it announced plans to reduce the value of its mines by $5B-$6B that even gold bears think the company is now a takeover target for the likes of Newmont Mining (NEM), Bloomberg reports. With an enterprise value of 253x the 40 years' worth of gold in its reserves, Newcrest’s multiple is less than half the median fetched by peers.| Jun. 26, 2013, 10:27 AM | 3 Comments
Jan. 24, 2013, 10:34 AM
Commodity prices are rebounding, but don’t expect megadeals in mining as a new crop of CEOs takes over, WSJ reports. At least 20 mining CEOs have stepped down in the past year, some related to unsuccessful acquisitions, and big deals are unlikely when many CEOs are new to their roles. "There will be M&A but it is likely to be very strategic, brownfield-related and very carefully thought through.”| Jan. 24, 2013, 10:34 AM | 2 Comments
Jan. 20, 2012, 8:33 AM
Kinross Gold (KGC) +1.5% premarket on speculation it may be a takeover target after saying earlier this week it will write down the value of its Tasiast mine in Mauritania, sending shares tumbling 20%. The company sells for $0.76 per dollar of net assets vs. the industry median of 2.5x, according to Bloomberg. Newmont Mining (NEM) is listed as a potentially interested suitor.| Jan. 20, 2012, 8:33 AM