Newmont Set to Take Mining Crown — WSJ

01/15/19 02:47 AM EST

$10 billion deal for Goldcorp intensifies consolidation wave as gold supply dwindles

By Alistair MacDonald and Jacquie McNish 

This article is being republished as part of our daily reproduction of WSJ.com articles that also appeared in the U.S. print edition of The Wall Street Journal (January 15, 2019).

Newmont Mining Corp. agreed to buy rival Canadian gold producer Goldcorp Inc. in a $10 billion, all-stock deal, creating the world’s largest gold miner.

The deal intensifies a consolidation wave triggered in part by languishing prices and dwindling supplies of easy-to-find gold, and comes on the heels of another gold-mining blockbuster: Barrick Gold Corp.’s agreement in September to buy Randgold Resources for $6 billion in an all-share merger.

If Newmont consummates the Goldcorp deal, the new company, set to be based in Denver, will surpass Toronto-headquartered Barrick — its longtime rival — in production, a key industry metric. Newmont and Barrick have circled each other for years and had toyed with a combination of their own in 2014.

Newmont, the U.S.’s largest miner measured by market capitalization, said it would acquire each Goldcorp share for 0.328 of its own stock. That represents a 17% premium to the Canadian company’s 20-day volume weighted average share prices.

The depletion of high-grade global gold reserves, and the resulting increase in extraction costs, has pushed miners to seek cost efficiencies and to buy other companies’ to land their reserves.

Such moves have become more pressing because exploration for new reserves has slowed dramatically after gold prices fell following a boom that peaked in 2001.

Newmont and Goldcorp, though, said they have continued to invest in exploration as others have cut back.

“We are not having to scramble for growth. We have it inherent in our existing business,” David Garofalo, Goldcorp’s chief executive, said in an interview. The new company will be headed by Gary Goldberg, the CEO of Newmont, until he retires around the fourth quarter of 2019.

Goldcorp’s share price rose 7.12% Monday, while Newmont’s closed nearly 9% lower.

Newmont said the combined company’s assets will be mostly based in the Americas, with 75% of its resources there. Another 15% will be based in Australia, with 10% in Ghana. That is in contrast to Barrick, which bet big on more politically risky African assets in its deal with Randgold.

In recent years big miners of other metals have gravitated toward deposits in more stable territories. The Goldcorp assets are in better locations, said John Meyer, an analyst at SP Angel in London.

As part of its combination plan, Newmont said it would sell $1 billion to $1.5 billion in assets over the next two years, with the aim of eventually producing a “sustainable, steady-state level” of six to seven million troy ounces of gold a year, after those divestitures.

Newmont and Goldcorp produced a combined 7.9 million troy ounces in 2017, the most recent annual figures available. That production — at least for now — would cause the combined company to leapfrog past Barrick, which has struggled with declining output.

Barrick was the undisputed king of gold production until recently, but its output has fallen more than 25% since 2013, to 5.3 million troy ounces at the end of 2017 — about the same as Newmont. Its acquisition of Randgold added about 1.3 million troy ounces as of the end of 2017.

Newmont traces its roots to 1916. It was founded by William Boyce Thompson, who grew up in Montana but earned his wealth in New York. Goldcorp dates to just 1994.

Gold companies have long signaled a need to consolidate. Apart from giants like Newmont and Barrick, the sector is filled with many smaller miners, all fighting over investors’ dollars.

Gold prices, meanwhile, have languished. They are down about 30% from their 2011 peak. In recent years, they have traded flat, capped in particular by rising U.S. interest rates.

In times of slow but steadily rising rates — like today — many see the yellow metal less favorably, stacked up against ultrasafe securities, like U.S. Treasurys, whose yields are rising.

Miners have also had to contend recently with the depletion of easy-to-reach high-grade gold deposits in stable jurisdictions.

The struggle for fresh reserves is more challenging for gold producers than miners of some other, more plentiful metals. Gold is present in the Earth’s crust in much smaller quantities than many of the most commonly mined materials. All the gold ever mined from the earth could fit in a 60-foot cube.

Discoveries have tapered off. Just 215.5 million troy ounces of gold has been found in 41 discoveries in the 10 years to 2017, compared with 1,726 million troy ounces in 222 discoveries in the preceding 18 years, according to S&P Global Market Intelligence. There were no discoveries made in 2017, according to S&P.

“Newmont was one of the few companies to focus on exploration during the last downturn,” said Mr. Goldberg, adding that the new company has 31 exploration sites.

Even in Nevada, where around three quarters of all U.S. gold production is based, discoveries have fallen swiftly. Nevada produced 5.6 million troy ounces of gold in 2017, well below the 1998 peak of 8.9 million troy ounces, according to John Muntean, an associate professor of mines and geology at the University of Nevada.

Goldcorp has been looking for a partner for at least several years, and had held talks with Australia’s Newcrest Mining Ltd. among others, according to people familiar with those discussions.

Mr. Garofalo declined to comment and Newcrest couldn’t be reached for comment.

Once a darling of the gold sector, Goldcorp’s share price has fallen around 75% from its 2011 peak.

Goldcorp’s poor performance has attracted more than one suitor in recent years. Barrick made takeover overtures about three years ago but was rebuffed, one person familiar with the matter said.

“Long-term Goldcorp investors may be disappointed, even with the 17% premium offered, as the company’s long promised (and long delayed) recovery was supposed to begin this year,” JPMorgan said in a research note.

Newmont, meanwhile, was close to merging with Barrick in 2014, during a period when gold prices were plummeting. That deal fell apart due to tensions between the two companies about their combined vision.

The recent mega-mergers could trigger additional deals as investors pressure gold miners to boost returns as they push into higher-risk regions to develop and operate new mines.

“There are too many players in an industry with shrinking opportunities, ” said Sean Boyd, CEO of Toronto-based Agnico Eagle Mines Ltd.

Write to Alistair MacDonald at alistair.macdonald@wsj.com and Jacquie McNish at Jacquie.McNish@wsj.com

(END) Dow Jones Newswires

January 15, 2019 02:47 ET (07:47 GMT) Copyright (c) 2019 Dow Jones & Company, Inc.

Asian Metal Market Update

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Big moves will be there in metals, energies and the US dollar Index only after the outcome of US-China trade talks are known. Till then, the consolidation phase will be there. Focus of the world in on a Chinese slowdown. Long term metal investors are on the sidelines as they expect slower and lower Chinese demand. If the trade talks succeed and all issues comes to an end once and for all, then also, the Chinese economic growth will not happen overnight. It will take at least another quarter to see actual higher and sustained growth.

Read more via: http://news.goldseek.com/InsigniaConsultants/1547042683.php

Gold slides after solid jobs data; palladium crosses key $1,300 mark

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Gold prices fell on Friday, pulling back from a more than six-month peak hit earlier in the session, after stronger-than-expected U.S. jobs data, while palladium prices punched through the key $1,300 level for the first time.

Spot gold slipped 0.78 percent to $1,283.56 per ounce as of 2:00 p.m. ET, after dropping as much as 1.3 percent to $1,276.40.

The metal was however on track for a third straight weekly gain, up about 0.2 percent so far, mainly helped by recent strong gains. It touched its highest level since mid-June at $1,298.42 earlier in the day.

U.S. gold futures settled down $9.00 to $1,285.80 per ounce.

“Industrial commodities and currencies have rebounded therefore the precious metals which have been the safe haven such as gold, silver have retraced today,” said David Meger, director of metals trading at High Ridge Futures.

“That is exacerbated by a stronger-than-expected payrolls data.”

read more via: https://www.cnbc.com/2019/01/04/gold-markets-global-economy-stock-markets-in-focus.html

Gold jumps from near two-week low after Powell says interest rates are ‘just below’ neutral

Gold jumped from near a two-week low on Wednesday after U.S. Federal Reserve Chair Jerome Powell said interest rates were “just below” neutral, soothing investor worries over the pace of rate hikes.

U.S. gold futures settled up $10.20, or 0.8 percent, at $1,223.60.

“Interest rates are still low by historical standards, and they remain just below the broad range of estimates of the level that would be neutral for the economy — that is, neither speeding up nor slowing down growth,” Powell told the Economic Club of New York.

Spot gold was up 0.7 percent at $1,222.45 per ounce after rising as much as 1 percent to $1,226.24.

“Assuming a hike next month and that 3% is the rate level the Fed wants to get to, then yes they are ‘just below’ where they want to be, at the modeled out ‘neutral rate’,” Peter Boockvar, chief investment officer at Bleakley Advisory Group, said in a note. “I think today’s comments take off the table for now the possibility of them wanting to get above the so called 3% neutral rate (assuming that’s what they think it is).”

Traders believed Powell was signaling there would be fewer rate hikes in 2019, which would theoretically boost the value of gold because it is seen as a hedge against inflation.

The dollar index rose to its highest since Nov 13. The currency has risen for previous three sessions, taking it near its year high of 97.69.

The dollar gained momentum after Fed Vice Chair Richard Clarida on Tuesday backed further interest rate hikes, weighing on non-interest bearing bullion.

“The buzz word (in Powell’s speech) seems to be we are ‘just below’ neutral status regarding rate increases,” said Walter Pehowich, executive vice president of investment services at Dillon Gage Metals.

“So, with a December rate hike and one or two more in 2019 that should be enough to put the Fed where they want to be.”

Higher U.S. interest rates tend to boost the dollar, making gold more expensive for holders of other currencies. Higher rates also increase the opportunity cost of holding gold, which does not pay interest.

Investors will watch for the minutes from the Fed’s Nov. 7-8 meeting, due on Thursday, for clues to policy in 2019. The Fed has raised rates three times this year.

Later this week, U.S. President Donald Trump is likely to meet his Chinese counterpart on the sidelines of the G20 meeting to discuss trade. Bullion has largely lost out to the dollar as a safe haven asset this year as the U.S.-China trade war unfolded while U.S. interest rates rose.

“The market remains very tight. … Potential growth for supply is very limited and demand remains robust even though we’ve seen a decline in auto sales in China and a slowdown in car sales in the U.S.,” said Suki Cooper, precious metals analyst at Standard Chartered Bank.

Read more via: https://www.cnbc.com/2018/11/28/gold-markets-the-fed-dollar-in-focus.html

Good oral health can prevent diabetes

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By Tim Sandle     Nov 14, 2018 in Health

A new campaign has been launched to assist with World Diabetes Day, focused on dental health. The campaign is being run by Sunstar and the European Federation of Periodontology, and it is called the ‘Perio & Diabetes’ Campaign.

The campaign has been launched due to the connection between oral health and diabetes. Here medical data shows that those with periodontal disease have a 20-30 percent higher risk of developing diabetes. Moreover, some 415 million people have diabetes and 750 million people have periodontal disease worldwide.

World Diabetes Day falls on November 14, although a series of associated events also run beforehand and afterwards. The day is the primary global awareness campaign focusing on diabetes mellitus, and it is led by the International Diabetes Federation.

When someone has diabetes, then this means that their pancreas is unable to produce enough or any insulin to break down the glucose in their blood. This condition can lead to a significant increase in a person’s blood sugar levels. Symptoms of high blood sugar include frequent urination, increased thirst, and increased hunger.

With the new campaign from Sunstar, a holistic healthcare company, this is focused on research examining the two-way relationship between oral health and diabetes, designed to run over a thirty-year period. This research, in conjunction with the European Federation of Periodontology, is important not only because those with periodontal disease have a much greater risk of developing diabetes; it also stands that those who have diabetes are more likely to develop gum (gingivitis) disease.

The way to help to address these issues is to maintain good oral health, especially for people with diabetes. Maintaining good oral health can assist with reducing blood sugar levels. This is the central message that forms part of the ‘Perio & Diabetes Campaign’.

Essential oral care recommendations include visits to a dentist twice a year; brushing teeth twice per day; and focusing on interdental brushing. According to Dr Marzia Massignani, who is the Senior Manager Scientific Affairs and Corporate Communications at Sunstar: “Early diagnosis of both diabetes and periodontal disease is essential if we want to improve prevention and treatment. It is therefore vital to raise awareness about this existing relationship and provide useful tools to patients, professionals and people at risk.”

As well as the research and advice, the campaign is calling for better surveillance, especially with detecting undiagnosed diabetes or prediabetes conditions in the dental surgery through appropriate instructions produced for dentists.

Read more: http://www.digitaljournal.com/life/health/good-oral-health-can-prevent-diabetes/article/536877#ixzz5X3IvRdsQ

Gold Prices Down, But Not Out After Fed Leaves Rates Unchanged

(Kitco News) – The gold market, while down on the day, is seeing little reaction to the Federal Reserve leaving interest rates unchanged and setting the stage for another interest rate hike in December.

 

Following its two-day monetary policy meeting, the U.S. central bank left interest rates unchanged within a range between 2.00% and 2.25% as expected. However, in its statement, the committee reiterated its expectations to continue down the path of gradual tightening.

“The Committee expects that further gradual increases in the target range for the federal funds rate will be consistent with sustained expansion of economic activity, strong labor market conditions, and inflation near the Committee’s symmetric 2 percent objective over the medium term,” the central bank said in its statement. “Risks to the economic outlook appear roughly balanced.”

The Federal Reserve’s continued commitment to raising interest rates continues to support the U.S. dollar, which in turn, weighs on gold prices. December gold futures last traded at $1,226.80 an ounce, down 0.15% on the day.

Read more via: https://www.kitco.com/news/2018-11-08/Gold-Prices-Down-But-Not-Out-After-Fed-Leaves-Rates-Unchanged.html

 

Gold prices post a modest decline as dollar weakens ahead of midterm vote – MarketWatch

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Gold prices posted a slight decline on Monday, holding above $1,230 an ounce for a third straight session as traders eyed some weakness in the U.S. dollar a day ahead of the closely watched midterm elections.

“Stepping back from today’s price action, what is most interesting for gold is how well it has held its ground despite a significant rally in the U.S. Dollar Index in recent weeks,” Michael Armbruster, managing partner at Altavest, told MarketWatch. “When it comes to gold, it’s easy to be lulled into a sense of complacency when the U.S. dollar is trending higher along with interest rates.”

Gold for December delivery GCZ8, -0.37%  edged down $1, or less than 0.1%, to settle at $1,232.30 an ounce, squarely between the day’s high of $1,236.60 and low of $1,228.40.

The contract ended last week slightly lower after a report showed a U.S. job market that was even stronger than expected—data seen keeping the next Federal Reserve interest-rate hike likely on track for December. Higher rates dull the appeal of nonyielding bullion, while boosting the dollar, making dollar-priced commodities less attractive to investors using other currencies.

Still, data Monday showed the nonmanufacturing index compiled by the Institute for Supply Management slipped to 60.3 last month from a 21-year high of 61.6 in September.

The dollar continued its decline after the ISM services survey, with the ICE U.S. Dollar index DXY, -0.06% down 0.3% at 96.286 in Monday dealings. Last Thursday, gold settled at its highest level in more than three months when the index weakened and as stock markets wrapped up a dismal October.

“Increased risk aversion with the equity markets’ selloff has certainly added a risk-averse boost to gold in recent weeks, but if the dollar starts to lose traction due to the reversal of the U.S.-China trade dispute, then this could be a driver of continued gold strength,” said Richard Perry, analyst at Hantec Markets.

Perry is watching $1,236 as a technical “line in the sand” for gold and says a consistently higher market at that price opens the way to a climb toward $1,266.

Armbruster pointed out that “investors should keep in mind that central banks around the world (China, Russia and others) are reportedly adding to their gold holdings. Such behavior by central banks may trump headwinds from the dollar and interest rates and result in a surprise rally.”

Read more via Gold prices post a modest decline as dollar weakens ahead of midterm vote – MarketWatch

6 Things Your Dental Hygienist Wishes You Wouldn’t Do When It Comes To Your Oral Health

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My name is Jordan and I do not love flossing. Look, I get it: It’s very important to floss as part of your oral hygiene. It can prevent long-term dental problems, and it makes getting your teeth cleaned much more bearable. I have no problems sticking to a healthy brushing routine, mostly thanks to the freshness I feel after spending two minutes taking care of my teeth. But aside from neglecting to floss on the reg, it turns out there are a number of things your dental hygienist wishes you wouldn’t do, and TBH, I’m guilty of pretty much all of them.

Natica Boland, a registered dental hygienist at Aspen Dental, spoke with Elite Daily over email about some of the common problems she sees while treating patients, and I have to admit, I’m feeling very seen right now, guys.

The thing is, it’s all too easy to see and feel the benefits of taking care of your body in other ways, whether that’s following a fitness routine or nourishing yourself with plenty of nutrient-rich foods. But for me, at least, taking care of my teeth feels like something I do just so that I don’t shock people with dragon breath.

In other words, taking care of your dental health can often feel like a chore, rather than something that brings you any noticeable benefits — but Boland says this mindset is a huge problem. Here are a few things she says you shouldn’t do when taking care of your dental health.

Find out more via 6 Things Your Dental Hygienist Wishes You Wouldn’t Do When It Comes To Your Oral Health

More Upside For Gold Prices

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This month’s rally in gold prices may not be over.

That’s because investors are still heavily betting on a decline in the value of the precious metal. When speculators overwhelmingly bet in one direction then a move in the opposite way is often the result.

Bars of gold bullion. Rob Bennett/AP Images for APMEX

On October 1, I wrote that speculators were betting so heavily on a further decline in gold prices that we’d likely see a rally. You can read the story here. Starting late January gold prices tumbled until they reached a recent low in mid-August.

However, even as the price stabilized traders held onto those so-called short positions, also known as bets on a decline in prices, and kept betting on further falls in the price.

By early October the negative bets became extreme and hence increased the likelihood of a gold price rally.

Read more via More Upside For Gold Prices

Tooth Wizard Teaches Scott Elementary Students How to Fight Tooth Decay – Herald Publications

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Tooth Wizard Teaches Scott Elementary Students How to Fight Tooth Decay

 

SCOTT AFB – Poor oral health and tooth decay can cause discomfort and result in young students having difficulty participating or concentrating in school. Nearly 40 percent of children in Illinois have had a cavity in the past year, and about one in five kids in Illinois has untreated tooth decay.1 To help kids learn about the importance of good oral health and how to fight decay, Tooth Wizard and PlaqueMan, characters from the Delta Dental of Illinois Foundation’s Land of Smiles program, visited students at Scott Elementary School on Oct. 18.
Although largely preventable with good oral health habits, the U.S. Surgeon General identifies tooth decay as the most common chronic childhood disease. Illinois children’s oral health habits could use improvement. According to the 2018 Delta Dental of Illinois Children’s Oral Health Survey, more than 43 percent of Illinois children brush their teeth once a day or less and nearly three-quarters floss their teeth less than once a day.2

“Our recent Children’s Oral Health Survey shows that Illinois children can greatly benefit from oral health education, which is a part of our mission,” said Lora Vitek, director of philanthropy and community relations, Delta Dental of Illinois Foundation. “Land of Smiles helps children learn about the importance of taking care of their teeth in a fun way. By teaching them why brushing, flossing and using mouthwash with fluoride should be parts of their daily routine, we hope to reduce the number of young children with cavities or poor oral health.”
Scott Elementary students began their oral health journey by helping the heroic Tooth Wizard defeat his arch nemesis, PlaqueMan, by learning the habits needed to have healthy smiles and bodies. Children got involved in the fun during the interactive performance, helping demonstrate how to correctly brush, floss and use fluoride rinse, which caused PlaqueMan to scurry off the stage in defeat. The free Land of Smiles program also taught children the importance of eating smile-friendly foods, visiting the dentist regularly and having sealants applied.
The Land of Smiles program seeks to combat poor oral health. The Oral Health in Illinois report, released in 2016 and sponsored by Delta Dental of Illinois Foundation and others, found that poor oral health is one of the most pressing, unmet health care issues facing Illinois children – particularly for those living in poverty and rural areas. In fact, the report found that one-third of Illinois children in rural areas have untreated tooth decay, and Illinois children living in poverty are five times more likely to have fair or poor oral health.3
“Prevention is key to reducing and eliminating tooth decay,” said Vitek. “Oral health education provided by the Land of Smiles program helps children keep their smiles healthy to prevent tooth decay in the first place, so they can avoid missing school due to oral health problems.”
In addition to the oral health lesson, children who participated in Land of Smiles received an oral health kit with a toothbrush, toothpaste, floss and a booklet packed with oral health tips. The school also received a curriculum kit to help educators reinforce good oral health habits with students throughout the year.
In 2018, the Land of Smiles program will reach nearly 38,000 pre-kindergarten through third-grade students in nearly 175 Illinois elementary schools throughout the state. The program has reached over 330,000 students at more than 800 Illinois schools in the past 10 years.
For those interested in requesting a Land of Smiles appearance at their school, visit landofsmilesil.org.
About Delta Dental of Illinois Foundation – 0The Delta Dental of Illinois Foundation was formed in March 2008 by Delta Dental of Illinois, a not-for-profit dental service corporation with a mission to improve the oral health of the communities it serves. Delta Dental of Illinois Foundation is the 501(c)(3) charitable arm of Delta Dental of Illinois and works to support and improve the oral health of people in Illinois. In the past decade, combined efforts of Delta Dental of Illinois and Delta Dental of Illinois Foundation have provided more than $5 million to programs in Illinois that improve the oral health of the residents.