-=Newmont Goldcorp (NEM) reported earnings on Thur 20 Feb 20 (b/o)

Newmont Goldcorp beats by $0.02, misses on revs; announces plan to increase annual dividend

Reports Q4 (Dec) earnings of $0.50 per share, excluding non-recurring items, $0.02 better than the S&P Capital IQ Consensus of $0.48; revenues rose 44.9% year/year to $2.97 bln vs the $3.02 bln S&P Capital IQ Consensus.

Outlook: Stable production outlook of 6.4 million ounces in 2020, and 6.2-6.7 mln ounces per year longer term through 2024 with an improving costs base; On track to realize $500 million per year of improvements in 2021, exceeding co's commitment by approximately 40%;

Co expects to realize $1.4 billion in cash proceeds in Q1 2020 through divestitures.

Co announces plan to increase annual dividend by 79% percent to $1.00 per share; effective upon approval and declaration of Q1 2020 dividend in April 2020.

Earnings this week : Feb 17 - 21, 20 (wk 8)

Monday (Feb 17)

• Holiday: Presidents' Day (US stock, bond, and options markets and the Federal Reserve Bank will be closed on Monday, February 17, 2020. Futures markets will close at 1pm ET.

Tuesday (Feb 18)

• Morning: AAP AEIS ALLE ATH BLMN CEVA CHH CEQP ECL EXPD FLR FELE GSX INMD JELD LDOS MDT SFL SITE TSEM TRU USAC VG VMC WAB WMT WLK
• Afternoon: A AMED ACC TXG ACC AWK ATRC BKD CHE CXO DVN FANG WIRE ENPH EVBG EXR GRPN HCKT HVT HQY HSTM HLF IOSP INVH KAR KRG KNL LZB LC DOOR NP NTR PLMR QTS ROIC RPAI SGMS SCPL SSTI SOI SHO TX TIVO TRTX TPH WRSK WNO

Wednesday (Feb 19)

• Morning: ADI ATHM BHC BCOR APRN FUN DISH ELAN ENBL ETR FVRR FDP GRMN GEL THRM GPC GLDD HEP IART NHI DNOW OC STNG SSW SAH SMP VPG WING
• Afternoon: AGI ALB Y ALSN CRMT AROC CAR AXTI SAM BCOV CAKE XEC CDE CYH CONE ESRT EIG ET FARO FIVN LOPE GDOT HCR HNI HST H IAG ICLR IMAX INOV IVR NVTA JACK JBT KALU KBR KL LSI MX MANT MASI MOS MSA LASR NE NDSN OIS OGS OSUR OR OVV PAAS PE PRDO PXD QTWO O RETA RBBN RPT SNBR SM SED SPTN STMP SUI SUN SNPS TVTY TSLX TRN UCTT UFPI VMI HCC WMB ZG

Thursday (Feb 20)

• Morning: AAN AKS AEP ARD AAWW BRC CAMT CBZ CLF COMM CSTM COT DNR DPZ EPAM FOCS GIL HEES HSIC HFC HRL HPP IDA ITGR I IDCC LAMR LXP LKQ MD MFA NEM NCLH OPI PCRX PQG RCM RS RGEN SHLX SIX SO STFC SCL STOR SYNH TFX TNC TEN TXMD VTR VIAC VC WIX
• Afternoon: ADSW LNT COLD APPN ATR BAND BJRI BYD BVN BLDR COG CAI CATM CASA CWST CENX ED CNDT CORT CVA CUBE DRH BOOM DBX DCO EHTH EBS ENV EVRG FSLY FSLR FND GLPI GMED HTGC HBM LTHM MMI NBR NCMI NGHC NUVA OEC PEB PPC PRAH PRA PBYI RMAX RWT ROG SBAC SWM SEM SFM SSRM TXRH TMST TRUE OLED VAL VICI WK ZIXI ZS

Friday (Feb 21) 

• Morning: BCPC B CNK CFX DE ERF HSC HMSY ITT MGA PNW RY TECK WPC

Notable earnings reports:
Walmart (WMT), Agilent (NYSE:A), Herbalife (NYSE:HLF), Groupon (NASDAQ:GRPN) and Scientific Games (NASDAQ:SGMS) on February 18; IMAX (NYSE:IMAX), Blue Apron (NYSE:APRN), Wingstop (NASDAQ:WING), Albermarle (NYSE:ALB), Hyatt Hotels (NYSE:H), Sunoco (NYSE:SUN), Dish Network (NASDAQ:DISH) and Zillow (NASDAQ:ZG) on February 19; Norwegian Cruise Line Holdings (NYSE:NCLH), (NASDAQ:VIAC), Domino's Pizza (NYSE:DPZ), Universal Display (NASDAQ:OLED) and Dropbox (NASDAQ:DBX) on February 20; Diana Shipping (NYSE:DSX), Royal Bank of Canada (NYSE:RY) and Deere (NYSE:DE) on February 21.

=Newmont Mining (NEM) : Barrick Gold (GOLD) considering hostile takeover of NEM

• These companies were close to a merger in 2014 when the negotiations collapsed
• 2/25/1:  Newmont Mining confirms receipt of acquisition proposal from Barrick Gold (GOLD), says will fully evaluate and respond in due course. The transaction proposal is conditional on Newmont not proceeding with its proposed combination with Goldcorp Inc. (GG) and other conditions, including confirmatory due diligence by Barrick.

(Reuters) - Canada's Barrick Gold Corp is considering a hostile bid for Newmont Mining Corp for about $19 billion in stock, in what would potentially be one of the largest-ever mining deals, the country's Globe and Mail newspaper reported.

The paper, which also reported that Barrick would flip some of Newmont's assets to Australia's Newcrest Mining, cited industry sources familiar with the situation.

Under the potential terms, Barrick would keep Newmont's Nevada and African mines, while Newcrest was considering taking over its Australian operations, according to the report.

Barrick, which spent $6.1 billion on buying rival Randgold Resources last month, has formed new management teams and cut administrative costs as part of new Chief Executive Mark Bristow's plan to set the combined company firmly apart from peers.

Bristow had said on a post-earnings call that Barrick Gold would continue to look at opportunities for mergers or acquisitions.

Barrick and U.S. company Newmont have long been touted as a potential match, as they have plenty of overlap around their North American operations, said an Australia-based banker.

"(But) there's a danger that Barrick is biting off more than it can chew (by making another large acquisition)," he said, declining to be identified due to the sensitivity of the issue.

Without such a deal, Barrick could cede its crown as the world's largest gold producer to Newmont, which is due to close its $10 billion buyout of smaller rival Goldcorp Inc next quarter.

If Barrick were to be successful, the merger between Newmont and Goldcorp would not go ahead, and Barrick would be liable for a $650 million break fee, the newspaper reported.

Bloomberg reported on Thursday that Barrick had studied a bid for Newmont as it looks for ways to boost production, citing people familiar with the matter.

Newmont declined a request from Reuters for comment, while Barrick did not immediately respond to request for comment.

A Newcrest spokesperson said the firm did not comment on M&A speculation. Goldcorp was not immediately available for comment.

AUSTRALIAN FIT?

Newmont has three gold mines in Australia, which have a net present value of $4.5 billion according to AME Group, but none of those are seen as the kind of large 'tier one' developments that Newcrest has said are a prerequisite for any major buys.

"Newcrest has a production hole in a couple of years' time with Cadia going offline," said one fund source based in Melbourne, referring to one of Australia's largest gold mines.

"It makes sense that they would be looking, but I would question the 'tier one' nature of the asset."

Any deal for the assets would hinge on price and the manner of payment, two other bankers and a fund manager said.

"I wouldn't care if they are not 'tier one' assets," said Simon Mawhinney of Allan Gray in Melbourne, which is the top shareholder in Newcrest with a stake of around 9 percent.

"But I would care if they were overpaid for, that would be a big issue."

=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.

Great trade : NEM (6/16)