Home Gold Stocks Shares of Newmont Mining (NYSE: NEM) Are Rallying Crazy Today On Buyout...

Shares of Newmont Mining (NYSE: NEM) Are Rallying Crazy Today On Buyout Chatter – Mike Swanson (02/22/2019)

Shares of Newmont Mining (NYSE: NEM) are up over 6% this morning after Barrick Gold (NYSE: GOLD) put out a press release this morning saying that it was considering making an attempt of a hostile takeover of Newmont in what would be a pure stock offer.

Such a deal would make the Newmont buyout of Goldcorp fall apart. As a result, Goldcorp (NYSE: GG) shares are down today.

Barrick’s press release stated: “Barrick Gold Corporation (NYSE:GOLD)(TSX:ABX) today confirmed that the Company has reviewed the opportunity to merge with Newmont Mining Corporation in an all-share nil premium transaction. No decision has been taken at this time.”

It is not clear how close such a deal is to be made and there has been talk of such a combination being made in the past.

Disclosure: Mike Swanson is the editor of this website and owns shares of both Barrick and Newmont.

There are more reasons to buy Newmont or Barrick than today’s rumors. I talked about the gold mining sector and precious metals with Jim Goddard of www.howestreet.com yesterday:


-Mike Swanson