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Newmont CEO Calls Barrick's Approach “Nonsensical”


(Kitco News) –  The chief executive officer of Newmont Mining, labeled a potential takeover attempt by rival gold miner Barrick Gold Corp., as “nonsensical.” 

Following the news of a Barrick bid for Newmont, Gary Goldberg the CEO of Newmont said he was “shocked,” and “concerned.”

“I had discussions with Mark [Bristow] before he came into the role about doing something together more broadly in Nevada,” Goldberg said in an interview with Kitco News from the BMO Metals and Mining conference in Florida. 

“He’s a miner. I’m a miner. We could sit down and have a good conversation – get the lawyers and the accountants out of the room and just have a good conversation about what could be accomplished. That’s where I am but left a little bit perplexed as to why he’s chosen this direction to go…[a]nd to see this approach just doesn’t make sense to me,” Goldberg said.

On Monday, Barrick CEO Mark Bristow said that its proposal to buy Newmont Mining Corp. (NYSE: NEM) provides Newmont shareholders a premium through an estimated $7 billion in synergies, even though a premium was not built into the share-price offer.

Bristow made the comments during a conference call with analysts after his company announced a proposal to acquire Newmont, which in turn earlier this year agreed to merge with Goldcorp Inc. (TSX: G, NYSE: GG).

Bristow called Newmont’s plans to acquire Goldcorp “ill conceived” and said Barrick would not want Goldcorp’s assets. Newmont, in turn, issued a statement Monday saying it considers the planned merger with Goldcorp to be the better option for its shareholders.

“I’m not sure [Bristow] ever did any diligence on the Goldcorp assets so I don’t know what his basis is for that,” Goldberg said. 

In January, Newmont agreed to buy Goldcorp in an all-stock deal valued at $10 billion. That purchase is set to be the largest gold mining deal in history and would secure Newmont’s lead over Barrick as the largest producer. If Barrick were to push through a deal for Newmont, it would reclaim the top spot and create a gold mining supergiant, producing 10 million ounces a year.

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