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Australian Investment Blog

ASX:NCM 09/11/2021

Newcrest (NCM) moves to buy Canadian gold miner

NCM -1.58%: the gold miner has been given its blessing to buy Canadian listed Pretium (PVG.TSX) by their board in a $2.8b deal. Newcrest have offered Pretium shareholders either $CA18.50/sh or 0.8084 NCM shares for each PVG held, equivalent to a 22.5% premium to the last close. Pretium’s Brucejack mine in British Columbia is a tier 1 asset which produced 348koz last year with costs below $US1,000/oz. Much of the criticism aimed at Newcrest is the lack of near-term production, a problem this acquisition solves, adding ~15% to the group’s production out to 2030 and reserve upside could see that extended further. The stock was under pressure today given the scrip offer will likely lead to an overhang of unnatural holders in NCM, however the deal is a good one.

MM is long and bullish NCM
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