OLIVIA THOMSON

The Cadia operation. Image: Newcrest Mining

Pitchers Partners has released its Dealmakers: mid-market M&A in Australia 2023 update, where it found that the mining sector contributed significantly to the country’s M&A (mergers and acquisitions) value through the Newmont acquisition of Newcrest.

Pitcher Partners is an association of independent accounting and business advisory firms located in Adelaide, Brisbane, Melbourne, Newcastle, Perth and Sydney.

Its latest dealers M&A (mergers and acquisitions) update found that international corporate buyers accounted for $48 billion of M&A activity in the first half of 2023. As a result, this has delivered the strongest six-month interval for offshore M&A values since 2018.

“Across all markets, foreign interest was led by North American dealmakers who contributed 77 per cent of deal value as they explored opportunities in Australia’s rich technology sector, as well as mining and resources, finance and healthcare,” the report said.

The overall value of global M&A was down by 35 per cent compared to the first half of 2022 and with a 37 per cent slump in the mid-market.

However, it was good news for Australia as the country’s M&A value increased by 13 per cent compared to the first half of 2022. Australian transactions in the first half of 2023 were worth $64.8 billion, coming from 390 deals. The number of deals has decreased by 26 per cent compared to those recorded in 2022.

The value figure is said to be influenced by the $26.6 billion Newmont purchase of Newcrest, which has made up approximately 41 per cent of the total deal value in Australia during the first half of 2023.

“Energy, mining and utilities made up 78 per cent of deal value in the first half of 2023, and even without the inclusion of the Newcrest sale, the sector still made up 50 per cent of total sales,” the report said.

Pitcher Partners Sydney corporate finance partner Andy Hough said that while values remain strong, Australian deal volumes were the lowest in more than five years, which he attributed to deals taking longer to complete in comparison to 12 months ago.

“Due diligence is becoming an increasingly drawn-out process, with factors such as environmental, social, and corporate governance (ESG) and increased regulatory burdens leading to a greater depth of scope,” Hough said.

A key example of this is the Newmont acquisition of Newcrest recently receiving approval from the Canadian Competition Bureau and Papua New Guinea’s Independent Consumer and Competition Commission.

“While that has negatively impacted on deal numbers in this half, it should result in an uptick of completed deals in the second half of the year,” Hough said.

OLIVIA THOMSON

Papua New Guinea’s (PNG) Independent Consumer and Competition Commission (ICCC) has granted clearance for Newmont to proceed with its acquisition of Newcrest.

After a three-month process beginning in February 2023, Newmont secured a $26.2 billion takeover deal with Newcrest.

The Canadian Competition Bureau issued a ‘no action’ letter clearing Newmont’s announced transaction with Newcrest under Canadian competition law in mid-July.

Newmont has since been continuing to advance other regulatory approvals, such as PNG’s, and it expects to close the transaction in the December 2023 quarter.

Newmont still needs regulatory approvals from the Australian Competition and Consumer Commission (ACCC), the Australia Foreign Investment Review Board (FIRB), the Japan Fair Trade Commission (JFTC), the Philippine Competition Commission (PCC), and the Korea Fair Trade Commission (KFTC) to complete its acquisition of Newcrest.

Additionally, Newmont has been in consultation with Newcrest, and through this has determined that a pre-merger notification under the Hart–Scott–Rodino Antitrust Improvements Act of 1976 will not be required in the US for the transaction to proceed.

“We appreciate the ICCC in Papua New Guinea carefully reviewing and clearing our proposed acquisition of Newcrest,” Newmont chief executive officer Tom Palmer said.

“Lihir in PNG is one of the world’s great gold mines and a Tier 1 operation by any measure. In addition to Lihir, we see profitable gold and copper growth through the world-class Wafi-Golpu project.

“We remain committed to building strong, mutually beneficial and long lasting relationships with PNG’s government and local communities. As part of this commitment, Newmont plans to establish PNG as a standalone fifth region in our portfolio with an in-country senior leadership presence and pursue a secondary listing of Newmont depositary interests on the PNG’s National Stock Exchange (PNGX).”

Both miners will continue engaging with the PNG Government and regulators about other approvals and clearances for the takeover.

金矿巨头Newcrest全年黄金产量录得210万盎司

2023-07-25 10:40:47 (AET) by Edward Zhang   819

黄金生产商 Newcrest（ASX：NCM）在23财年实现了集团黄金产量和AISC（全部维持成本）的指导目标。但由于Cadia和Telfer的工厂产量下降，其全年铜产量低于指导范围1%。

【澳股资讯平台 – 61 Financial 7月25日讯】黄金生产商 Newcrest（ASX：NCM）周二发布公告，提供了2023年6月季度的活动报告。

报告显示，Newcrest在23财年实现了集团黄金产量和AISC（全部维持成本）的指导目标。但由于Cadia和Telfer的工厂产量下降，其全年铜产量低于指导范围1%。

由于本季度Cadia、Lihir和Brucejack业务的工厂吞吐量增加，以及Lihir和Brucejack的头矿金品位提高，黄金产量比上一季度高出9%。与前一时期相比，Red Chris和Telfer的黄金产量也有所增加。

公司季度总黄金产量录得55.6万盎司，铜产量录得3.5万吨。这推动公司23财年黄金总产量录得210万盎司，总铜产量为13.3万吨。

Newcrest本季度的AISC录得1196美元/盎司，比上一季度高出20%，主要是由于Lihir、Cadia和Red Chris的资本支出增加，以及实现铜价下降。本季度公司主要运营地点的黄金产量增加，推动了全集团黄金销量的增长，以及铜销量增加和澳元兑美元贬值对运营成本的影响，部分抵消了这一影响。

6月季度，Newcrest旗下受伤率与前一时期基本一致，这反映了Newcrest对安全的高度关注，因为所有工厂都在继续进行控制改进计划，以解决主要危险。尽管在整个23财年稳步降低了工伤率，但Cadia在本季度遭受了工伤的上升。

Cadia的TRIFR（总可记录伤害频次率）录得每百万小时7.06次可记录伤害，高于前一时期。公司指出，在本季度，来自Cadia合同合作伙伴的一名团队成员严重受伤，目前正在接受新南威尔士州资源监管机构的调查。

目前，Newcrest正在为这名队员、他的家人和同事提供支持。并致力于评估和改进其安全文化和系统，以减少伤害事件。

公司股价一年走势回顾：

【更多NCM公告和股价走势请点击NCM个股页面】

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消息来源：

公司公告Quarterly Report ended 30 June 2023

金矿商Northern Star计划开发价值15亿澳元项目扩展

金矿商 Northern Star（ASX：NST）已决定批准在西澳大利亚州卡尔古利（Kalgoorlie）开发价值15亿澳元的KCGM工厂扩建项目。

【澳股资讯平台 – 61 Financial 6月23日讯】金矿商 Northern Star（ASX：NST）周四发布公告称，其已决定批准在西澳大利亚州卡尔古利（Kalgoorlie）开发价值15亿澳元的KCGM工厂扩建项目。

根据更新，Northern Star预计该开发将进一步加强北极星的关键资产和公司的整体投资组合。预计KCGM的处理能力将从1300万吨/年增加到2700万吨/年，并实现现代化。

根据每盎司2600澳元的金价（当前金价约为2850澳元），公司预期如下：

• 税后内部收益率（IRR）为19%；
• 项目投资回收期4.6年；
• 黄金平均年产量为90万盎司；
• 平均每年全部维持成本（AISC）为每盎司1425澳元（全公司AISC目前为每盎司1766澳元）。

公司透露，为期三年的建设阶段现已开始，并已订购了长期领先的项目。

Northern Star预计，产量将从2027财年开始增加，到2029财年达到2700万吨/年的稳定产量。

此外，这想开发将完全由该公司手头现金和预测现金流提供资金。因此，公司的股息政策将得以维持。

公司股价一年走势回顾：

【更多NST公告和股价走势请点击NST个股页面】

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消息来源：

公司公告KCGM Mill Expansion Financial Investment Decision

Northern Star Resources set to expand the Super Pit

ALEXANDRA EASTWOOD

The Northern Star Resources board has approved the expansion of the Fimiston Mill, part of the Kalgoorlie Consolidated Gold Mines’ (KCGM) Super Pit.

The expansion from 13 million tonnes per annum (Mtpa) to 37Mtpa is set to cost $1.5 billion and is due to be completed in 2026.

Located at the centre of the Kalgoorlie goldfields, the Super Pit is one of Australia’s largest open pit gold mines and includes the Mt Charlotte underground mine and the Fimiston and Gidji processing plants.

“Today is an exciting day for Northern Star and a historic new chapter for this world-class asset,” Northern Star managing director Stuart Tonkin said.

“The board’s decision to approve the KCGM mill expansion and optimisation represents the next stage to revitalise our largest asset as well as the surrounding district for decades to come.

This project is financially compelling, and a significant enabling step towards delivering our strategy to generate superior returns for our shareholders.”

Northern Star has had a productive start to the year at the Super Pit, increasing gold resources to 57.4 million ounces (Moz) and keeping ore reserves steady at 20.2Moz.

Tonkin said the company is confident the site will continue to produce significant value.

“Our confidence in the economics of KCGM to remain a long-life, low-cost gold mine has been further reinforced through the feasibility study phase,” he said.

“Expanding the processing capacity of KCGM will strengthen Northern Star’s portfolio, materially increase our free cash flow generation and progress our long-term strategy to be within the 2nd quartile of the global cost curve.

“Further, the project is important in our sustainability journey and will also sustain hundreds of local jobs, economic and social investment, and local procurement opportunities in the Goldfields region.”

OLIVIA THOMSON

Greatland Gold has announced that the management of the Juri joint venture (JV) will transfer to Newcrest, its joint venture partner from July 1.

The Juri JV is an unincorporated joint venture between Greatland Gold and Newcrest. Greatland own 49 per cent of the JV and Newcrest own 51 per cent. The JV was formed in November 2020 to accelerate exploration at the Paterson Range East and Black Hills exploration licences.

Under the terms of the farm-in and joint venture agreement which governs the Juri JV, Newcrest could elect to become the joint venture manager at any time following an initial period.

Newcrest has now exercised its right to do so and will assume this responsibility from the beginning of the 2024 financial year.  The transfer of management of the Juri JV to Newcrest does not affect any of Greatland’s other rights as a joint venture participant.

Greatland managing director Shaun Day said the company welcomes Newcrest elevating its engagement and interest in the Juri JV.

“Greatland strongly believes in the prospectivity of the Juri Joint Venture tenure and will continue to be an active participant following the upcoming management transition,” Day said.

“The shift of Juri Joint Venture management to Newcrest provides Greatland’s exploration team the opportunity to put greater focus on our 100 per cent owned portfolio of highly prospective tenure together with our responsibilities as the new manager of the farm-in and joint venture arrangement with Rio Tinto on the Paterson South project.”

Greatland has the intention to continue as an active and supportive joint venture participant given the potential for the discovery of new intrusion-related gold-copper deposits similar to its Havieron gold-copper deposit, Newcrest’s Telfer gold-copper mine and Rio Tinto’s Winu copper-gold deposit.

TOM PARKER

As South32 looks to grow its portfolio, the company seems to have identified a copper mine that could be an M&A fit.

According to The Australian Financial Review, South32 has sounded out a potential acquisition of Khoemacau Copper Mining which operates its namesake copper mine in Botswana.

Khoemacau ramped up to full production in February – achieving 3.65 million tonnes per annum (Mtpa) of throughput – and has a nameplate production capacity of 60,000 tonnes per annum of copper, with silver as an added-value product.

Khoemacau has an estimated mine life of 20 years, producing copper at C1 cash costs of $US1.15 per pound. Mining is currently taking place from Zone 5 – an underground mine where three corridors are producing an average of 1.2Mtpa of ore each.

It is understood South32 has engaged RBC Capital Markets as it prepares an indicative bid for Khoemacau Copper Mining, while the AFR also believes the company could come up against opposition, including from Sandfire Resources.

Khoemacau could be seen to complement Sandfire’s Motheo copper mine, which produced first copper concentrate in late May.

South32 chief executive officer Graham Kerr recently suggested copper, zinc and nickel were the three commodities driving the company’s M&A strategy.

The major currently produces copper from its 45 per cent stake in the Sierra Gorda mine in Chile – an asset it acquired in February 2022.

The company also has a series of earn-in agreements with resource companies around the world. This includes two emerging copper exploration projects in Argentina – Chita Valley and Don Julio.

Kerr said Argentina could be a copper jurisdiction to keep an eye on in years to come.

“Argentina’s become an interesting location,” he told reporters at a Melbourne Mining Club luncheon in late April. “When we first started doing some work there, we were probably the only ones. You’ve got BHP there, you’ve got Barrick there, you’ve Glencore there – everyone’s sort of pouring money into that jurisdiction at the moment.

“If you look at where it is, it’s on the other side of the Chile mountains where basically all the copper is. So I think that’s an area that’s going to develop pretty quickly. The challenge around that jurisdiction is it tends to be on average higher levels of arsenic, which typically you blend out, or you look at new technology to remove it.”

Elsewhere, South32’s portfolio is made up of commodities such as alumina, aluminium, zinc, silver, lead, nickel and manganese.

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TIMOTHY BOND

With the Newmont takeover of Australian gold miner Newcrest now given the green light by the board, Australia’s gold landscape is set to change forever.

Newcrest has a strong portfolio of assets which the US gold giant is evidently keen to get its hands on, such as the Brucejack gold and silver mine in Canada, the Lihir gold mine in PNG, Cadia Hill in NSW, and the Telfer mine in WA – both among Australia’s largest gold mining operations.

Newmont already owns the Boddington mine in WA and the Tanami mine in the NT, so the takeover will put the company in control of four out of six of Australia’s largest gold mines.

But industry experts from the Australian Financial Review (AFR) are speculating that not all of Newcrest’s assets will make the cut, and will be divested before the dust settles.

Newmont chief executive officer Tom Palmer told AFR that he considers only two of Newcrest’s assets “tier one”, which are Cadia Hill and Lihir.

“Those assets are tier one, world-class by any measure. So, they are firmly in the portfolio,” he told AFR. 

When the ink dries, this will give Newmont a portfolio of ten tier one assets.

Palmer also showed a keen interest in Newcrest’s Canadian assets, Brucejack and Red Chris, which are located nearby its own Saddle North project. Palmer called this combination of gold assets a “golden triangle”.

“I would call the golden triangle a tier one district,” he said.

That’s not to say that all everything else faces divestment, but it seems that Newmont will be considering its new assets very carefully.

“We are certainly looking for value over volume,” he said.

“So as we work our way through understanding the portfolio, we will be making judgements about what our go-forward portfolio is.”

If shareholders vote in favour of the Newmont takeover, foreign ownership of Australian gold assets will rise above the 50 per cent line, industry analysts from Surbiton Associates have revealed.

“In the early 2000s, the control of the Australian gold industry stood at 80 per cent,” Surbiton managing director Sandra Close said.

“It dropped to just under 30 per cent Australian control as overseas gold companies bought up Australian operations, and it was when the Aussie dollar was down around 50 (US) cents, so it was pretty cheap for them to buy the operations.

“Over time a lot of those operations were sold, so we’re currently looking at 60 per cent Australian control in the gold industry.

“But the recent announcement with Newmont and Newcrest, and we’ll be watching that closely, if that did go ahead it would mean Australian control would fall just below 50 per cent again.

“Whether we’d see yet another round of acquisitions as we did in the early 2000s is a pretty interesting question.”

The spot price of gold is currently trading at US$2015.60 per ounce.