RE: Telfer7 Nov 2023 07:19
As always, in any major global takeover, involving many operations, there's a lot of speculation, especially in the media, about what will happen to those many operations.
Yet another piece in the Wall Street Journal last night:
"There are also mines in Canada, Australia and Ghana whose futures will be scrutinized in the months ahead. No decisions have been made about those most likely to be sold, said Palmer.
“You may find that Newmont keeps a number of those in our portfolio over the long term because they’re generating good cash” and offer other benefits, Palmer said.
Part of the rationale for buying Newcrest was to strengthen Newmont’s footprint in favorable mining jurisdictions, he said, as a resurgence in resource nationalism becomes a problem again for the industry.
Executives will need to determine which operations can maintain sufficiently attractive profit margins, he said.
Already buyers are circling for some assets. Palmer said deal interest has been logged by Newmont’s corporate-development team of about 10 employees. That team managed a string of sales in-house after Newmont bought Goldcorp in 2019—bringing in close to $2 billion—and again might run deal negotiations without appointing an investment bank, he said.
“That team has a fairly full inbox,” said Palmer. “But they’re not under any pressure to be trying to get a quick sale out the door.”"
As far as I'm concerened, as many others have stated, including Callum Baxter, it's a win-win for Greatland, whichever way it goes.
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