With a vote of confidence for gold heard 'round the mining world, a leading gold miner dug deep into its pockets this week to consolidate ownership of the next big thing Down Under -- and I'm not talking about falsetto-singing disco trios or funky sandwich spreads.
Marking a bold reversal from the prevailing conservatism within the industry, Newmont Mining
To fund the $1 billion purchase, along with increased capital expenditures, Newmont turned to the market with an issuance of 30 million shares priced at $37, plus a $450 million offering of senior notes carrying a 3% yield. Newmont's willingness to strike a deal of this magnitude in the present climate, along with the achievement of low-cost financing, comprises another rung in the ladder of gold's decoupling process from non-monetary commodities. While many base metal miners like Rio Tinto
With this deal as the ice-breaker, I expect to see a major resurgence in consolidation within the gold industry. Many gold miners, including Yamana Gold
Newmont recorded production of 5.2 million ounces gold at an average cost of $440 per ounce in 2008. The Yanacocha joint venture with Buenaventura