The creation of the world's largest gold miner, as Newmont Mining and Goldcorp move forward with their merger plans, was an accretive deal that Gary Goldberg, CEO of Newmont, said he very much wanted to do, rather than needed to do.
"When you look at Goldcorp's assets and ours, we sit very complimentarily to each other," Goldberg told Kitco News. "They have some great assets in Canada and in Mexico and in Argentina that fit in well with our operating assets and our global footprint."
The Newmont-Goldcorp merger was announced earlier in January and will form the world's largest gold producer by production volume and reserves.
The deal, valued at $10 billion, trumps the previous mega-merger between Barrick Gold and Randgold Resources, which was valued at $5.4 billion.
- Peter Schiff: Tides Are Changing In Gold's Favor
The combined enterprise value of Newmont Goldcorp is expected to exceed $32 billion, while production will reach 7.8 million ounces, according to company data.
Combined, 24% of the portfolio reserves will come from the U.S., with 27% from Latin America, 14% from Canada, and the rest sourced from Australia, Ghana, and Mexico, the company reports.
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This article is commentary by an independent contributor. At the time of publication, the author held TK positions in the stocks mentioned.