=Goldcorp (GG) to be acquired by Newmont Mining (NEM) for $10 bln

Goldcorp to be acquired by Newmont Mining (NEM) in a stock-for-stock transaction valued at $10 bln

Under the terms of the agreement, Newmont will acquire each Goldcorp share for 0.3280 of a Newmont share, which represents a 17 percent premium based on the companies' 20-day volume weighted average share prices. Newmont Goldcorp's Reserves and Resources will represent the largest in the gold sector and will be located in favorable mining jurisdictions in the Americas, Australia and Ghana, representing approximately 75 percent, 15 percent and 10 percent, respectively. Newmont Goldcorp will also prioritize project development by returns and risk, while targeting $1.0 to 1.5 billion in divestitures over the next two years to optimize gold production at a sustainable, steady-state level of six to seven million ounces annually. Supported by stable, profitable long-term production and an investment-grade balance sheet, Newmont Goldcorp will generate robust free cash flow and have the financial flexibility to fund project development and exploration in the decades ahead.

• Newmont to acquire all outstanding Goldcorp equity at an exchange ratio of 0.3280 of a Newmont share and $0.02 for each Goldcorp share
• Goldcorp equity value of $10 billion, with premium, and enterprise value of $12.5 billion
• Newmont and Goldcorp shareholders will own approximately 65 percent and 35 percent of the combined entity, respectively

Goldcorp also reported gold production for the fourth quarter of 630,000 ounces, which was a 25% increase from the third quarter of 2018 and exceeded previously stated guidance. Production for the year ended 2018 was 2,294,000 ounces. All-in sustaining costs for the full year are expected to be at the revised guidance of $850 per ounce. Goldcorp's complete 2018 financial results will be released on February 13, 2019.

• NEM (31.82 -8.77%): Acquiring Goldcorp (GG) at a +17% premium in a stock-for-stock transaction valued at $10 bln; expects transaction to be immediately accretive to net asset value and cash flow per share and for it to generate up to $100 mln in annual pre-tax synergies; combined co, operating a project pipeline that spans four continents, will target $1.0-1.5 bln in divestitures during the next two years to optimize gold production at a sustainable, profitable, steady-state level of 6-7 mln ounces annually.