Newmont Mining Corporation confirmed today that it is on schedule with its plans for the integration of the businesses of Newmont, Normandy Mining Limited and Franco-Nevada Mining Corporation Limited, which result in the largest gold mining company in the world. The deal worth US$4.5 billion is expected to be completed by mid-February.
Management teams from all three companies are accelerating the integration process which builds on the complimentary strengths of all parties involved. Wayne Murdy, Chairman, President and CEO of Newmont said that the new company would provide investors with the strongest participation in a rising gold price and a balanced portfolio of superior assets as well as being an industry leader in all aspects of their business.
When the integration process is completed, Newmont will:· Have the largest gold reserves in the world
· Have the highest production of gold in the world
· Be one of the best capitalised gold companies
· Have the financial strength to develop attractive projects and to significantly reduce debt over time, even at current gold prices;
· Be able to benefit from consistent cash flow (even in a low gold price environment) generated by the high margin royalty and investment business of Franco-Nevada, which will continue to operate as a division of the combined company;
· Have the ability to operate a diversified portfolio of world-class operations with balanced political risk and a focus on large mining districts
· Offer investors the most leverage to a rising gold price of any major producer
· Possess the ability to optimise the company's asset portfolio
· They will have a strong, seasoned management team and committed employees to deliver shareholder value through global exploration, development and operation, merchant banking and merger integration.