Newcrest acquisition to deliver $500 million in annual synergies, says Newmont CEO
With the recently approved acquisition of Newcrest Mining (ASX, TSX, PNGX: NCM), Newmont (NYSE: NEM, TSX: NGT) will be well-positioned to set the new standard for gold mining across the industry, according to its president and CEO Tom Palmer.
Speaking at the 2023 Gold Forum Americas conference on Tuesday, Palmer says he expects the combined business to deliver around $500 million of annual synergies, with a target of $2 billion in cash from portfolio optimization.
The Newcrest acquisition, says Palmer, is expected to strengthen Newmont’s portfolio and create the best collection of Tier 1 gold and copper assets concentrated in favorable mining jurisdictions.
The biggest value drivers of the transaction will come from Newcrest’s two Tier 1 operations, Cadia and Lihir, located in Australia and Papua New Guinea, respectively.
The Newmont executive draws comparison to what the company experienced at the Peñasquito in Mexico, which has returned some $5.8 billion since its acquisition over four years ago.
A full transcript of Palmer’s speech is here.