Topic: How To Invest

Wall Street Stock Forecaster Hotline – Friday, January 18, 2019

Article Excerpt

NEWMONT MINING CORP., $31.77, New York symbol NEM, is one of the world’s largest gold and copper producers. Its mines are in North America, South America, Australia and Africa. The company has agreed to a friendly merger with Vancouver-based Goldcorp Inc. (New York symbol GG). The new company—called Newmont Goldcorp—will be the world’s largest gold mining company, producing between 6 million and 7 million ounces annually. Under the terms of the deal, Goldcorp shareholders will receive 0.3280 of a Newmont share plus $0.02 for each share they hold. Based on Newmont’s current share price, the deal is worth $9.1 billion. That’s equal to 54% of its current market cap (the total value of all outstanding shares). Following the merger, Newmont investors will own 65% of the combined company with Goldcorp shareholders holding the remaining 35%. The Americas will account for 75% of its reserves, followed by Australia (15%) and Ghana (10%). The new company also plans to sell between $1.0 billion and $1.5 billion…

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