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by Stockwatch Business Reporter
New York spot gold rose $1.30 to $1,274.90 on Thursday. The TSX Venture Exchange lost 0.84 point to 609.21 while the TSX Gold Index slipped 2.13 points to 186.63.
Goldcorp Inc. (G), down 49 cents to $14.43 on 51.74 million shares today, is about to quietly disappear as an independent company. With its merger with the $23-billion, U.S.-based, Newmont Mining Corp. now complete, the $13-billion Canadian gold miner will begin trading next week as Newmont Goldcorp Corp., an entity so big it needs two "corps" in its name. Newmont is the dominant entity in the merger: The combined company is being run by Gary Goldberg, chief executive officer, and Tom Palmer, president and chief operating officer, both Newmont men.
The new crew was quick to laud the merits of the merger, even ahead of the formal demise of Goldcorp's listing.
They say that the addition of Goldcorp will "be accretive to" (pompous for "increase") old Newmont's net asset value per share by 27 per cent, and it will increase its 2020 cash flow per share by 34 per cent. Newmont Goldcorp Corp. has a steady target of between six million and seven million ounces of gold annually over a decades-long time horizon and Mr. Goldberg and Mr. Palmer say the company will "begin delivering $365-million in expected annual pretax synergies, supply-chain efficiencies and full potential improvements." (Newmont Goldcorp Corp. will apparently be delivering an increased stream of corporate bafflegab, commensurate with both its corp-corp name and its unwieldy size.)
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