{"id":8269,"date":"2023-05-16T09:30:30","date_gmt":"2023-05-15T23:30:30","guid":{"rendered":"https:\/\/yinghuiinternational.com\/?p=8269"},"modified":"2023-06-23T09:31:20","modified_gmt":"2023-06-22T23:31:20","slug":"what-does-the-newmont-takeover-mean-for-the-aussie-gold-industry","status":"publish","type":"post","link":"https:\/\/yinghuiinternational.com\/index.php\/2023\/05\/16\/what-does-the-newmont-takeover-mean-for-the-aussie-gold-industry\/","title":{"rendered":"What does the Newmont takeover mean for the Aussie gold industry?"},"content":{"rendered":"\n

<\/h1>\n\n\n\n

\"\"TIMOTHY BOND<\/a><\/p>\n\n\n\n

\"newmont,<\/figure>\n\n\n\n

With the Newmont takeover of Australian gold miner Newcrest now given the green light by the board<\/a>, Australia\u2019s gold landscape is set to change forever.<\/p>\n\n\n\n

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 \u2013 both among Australia\u2019s largest gold mining operations.<\/p>\n\n\n\n

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\u2019s largest gold mines.<\/p>\n\n\n\n

But industry experts from the Australian Financial Review <\/em><\/a>(AFR)<\/em> are speculating that not all of Newcrest\u2019s assets will make the cut, and will be divested before the dust settles.<\/p>\n\n\n\n

Newmont chief executive officer Tom Palmer told AFR <\/em>that he considers only two of Newcrest\u2019s assets \u201ctier one\u201d, which are Cadia Hill and Lihir.<\/p>\n\n\n\n

\u201cThose assets are tier one, world-class by any measure. So, they are firmly in the portfolio,\u201d he told <\/a>AFR. <\/em><\/p>\n\n\n\n

When the ink dries, this will give Newmont a portfolio of ten tier one assets.<\/p>\n\n\n\n

Palmer also showed a keen interest in Newcrest\u2019s Canadian assets, Brucejack and Red Chris, which are located nearby its own Saddle North project. Palmer called this combination of gold assets a \u201cgolden triangle\u201d.<\/p>\n\n\n\n

\u201cI would call the golden triangle a tier one district,\u201d he said.<\/p>\n\n\n\n

That\u2019s not to say that all everything else faces divestment, but it seems that Newmont will be considering its new assets very carefully.<\/p>\n\n\n\n

\u201cWe are certainly looking for value over volume,\u201d he said.<\/p>\n\n\n\n

\u201cSo as we work our way through understanding the portfolio, we will be making judgements about what our go-forward portfolio is.\u201d<\/p>\n\n\n\n

\"newcrest,
Newcrest\u2019s Cadia Hill is the second largest gold mine in the country.<\/figcaption><\/figure>\n\n\n\n

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

\u201cIn the early 2000s, the control of the Australian gold industry stood at 80 per cent,\u201d Surbiton managing director Sandra Close said.<\/p>\n\n\n\n

\u201cIt 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.<\/p>\n\n\n\n

\u201cOver time a lot of those operations were sold, so we\u2019re currently looking at 60 per cent Australian control in the gold industry.<\/p>\n\n\n\n

\u201cBut the recent announcement with Newmont and Newcrest, and we\u2019ll be watching that closely, if that did go ahead it would mean Australian control would fall just below 50 per cent again.<\/p>\n\n\n\n

\u201cWhether we\u2019d see yet another round of acquisitions as we did in the early 2000s is a pretty interesting question.\u201d<\/p>\n\n\n\n

The spot price of gold is currently trading<\/a> at US$2015.60 per ounce.<\/p>\n","protected":false},"excerpt":{"rendered":"

TIMOTHY BOND With the Newmont takeover of Australian gold miner Newcrest now given the green light by the board, Australia\u2019s 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 … Continue reading “What does the Newmont takeover mean for the Aussie gold industry?”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[206,7],"tags":[],"class_list":["post-8269","post","type-post","status-publish","format-standard","hentry","category-goldcopper","category-news"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p83F9T-29n","jetpack-related-posts":[{"id":8324,"url":"https:\/\/yinghuiinternational.com\/index.php\/2023\/08\/03\/newmont-takeover-of-newcrest-receives-png-approval\/","url_meta":{"origin":8269,"position":0},"title":"Newmont takeover of Newcrest receives PNG approval","author":"yinghui","date":"August 3, 2023","format":false,"excerpt":"OLIVIA THOMSON Papua New Guinea\u2019s (PNG) Independent Consumer and Competition Commission (ICCC) has granted clearance for Newmont to proceed with its acquisition\u00a0of\u00a0Newcrest. 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