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
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Fool contributor Christopher Barker captains yachts and writes about stocks. He can be found blogging actively and acting Foolishly within the CAPS community under the username TMFSinchiruna. He owns shares of Buenaventura, Kinross Gold, and Yamana Gold. The Motley Fool has a disclosure policy.