And investors in gold stocks have been reaping the rewards as many share prices soared.

Newmont Corporation CDI (ASX: NEM) (NYSE: NEM) – the world's largest gold miner – has seen its shares rise 38% in the last twelve months to around $90.

ASX 200 powerhouse Northern Star Resources Ltd (ASX: NST) also impressed with its shares up 28% to $16.57 at the time of writing.

But there's another metal making headlines – and major miners are taking notice.

That metal is copper, which rocketed to record highs this week after President Trump proposed a 50% tariff on US copper imports.

The red metal

Copper is one of the oldest metals known to humanity – and still one of the most important.

It boasts mass industrial applications due to its ductility, malleability, resistance to corrosion, and its thermal and electrical conductivity.

In a nutshell, copper is everywhere – from residential and commercial construction to power grids, transportation, household appliances, and consumer electronics such as smartphones.

And in the era of electrification, its strategic significance could be poised to grow further.

It plays a vital role in electric vehicles (EVs) and the infrastructure that supports them.

To illustrate this point, EVs use about four times more copper than traditional internal combustion engine vehicles.

Bright future ahead?

Copper's widespread industrial use and its vital role in electrification could see demand skyrocket.

According to research by the International Energy Forum (IEF), 115% more copper will need to be mined over the next 30 years than has been extracted in all of history.

And that's just to meet business-as-usual trends.

Electrifying the global vehicle fleet may require 55% more copper mines than would otherwise be needed.

Such forecasts paint a bullish picture for copper miners, and ASX mining giant BHP Group Ltd (ASX: BHP) is paying attention.

Scaling up copper production

BHP has significantly ramped up its copper exposure in the last couple of years, headlined by its A$10 billion acquisition of Oz Minerals (ASX: OZL).

It also invested A$3.2 billion to acquire Canadian group Filo Corp (TSE: FIL) and its flagship Argentinian project through a joint venture with Lundin Mining Corp (TSE: LUN).

These strategic moves add to BHP's already vast portfolio of copper mines spanning Chile, Peru, South Australia, and Arizona.

And its crown jewel is Escondida – the world's largest copper mine and majority-owned asset.

BHP claims that it now holds the largest copper resource base globally – and with demand projected to boom, the timing couldn't be better.

The post Forget gold! This metal just hit record highs and ASX 200 miner BHP is betting big appeared first on The Motley Fool Australia.

As gold enthusiasts would be well aware, earlier this year Newcrest received a takeover offer from the giant US gold miner Newmont Corporation (NYSE: NEM).

After some toing and froing, Newcrest and its investors accepted an all-scrip acquisition bid from Newmont. Investors were to receive 0.4 Newmont shares for every Newcrest share owned. At the time this final offer was made, it valued Newcrest at $32.87 a share, which was a significant premium to the pricing that investors have seen with this company in recent years.

Well, fast forward to today, and the Newmont takeover is a done deal. Newcrest shares have left the ASX for good, ending a multi-decade presence on the Australian stock market.

However, Newmont is a US-listed company, which doesn't quite make for the easiest of ASX share mergers.

The new Newcrest: How the Newmont share price came to the ASX 200

To overcome this hurdle, Newcrest investors on the ASX received CHESS Depositary Interests (CDIs) in Newmont. CDIs are a financial instrument that allows a foreign-listed share to trade on the ASX. Put simply, a CDI represents ownership of its primary-listed equivalent. So in essence, one Newmont ASX CDI equates to one Newmont share on the US market, with the prices reflecting the difference in exchange rates of course.

As such, every Newcrest investor who didn't opt to sell their shares before the company delisted from the ASX now owns 0.4 Newmont CDIs for every Newcrest share they used to own. These new Newmont shares had their first day of ASX trading on Friday 27 October.

Let's now see how these Newmont shares have performed over their first week-and-a-bit of ASX life.

The Newmont share price closed at $59.50 on that Friday. By the subsequent Monday, the company had already inked a new high of $63.36. But as gold sentiment dropped over the last week, so too did Newmont CDIs. By last Thursday, the company had dropped to a low of $57.86 and closed the day at $58.25.

But last Friday and today have seen something of a recovery. Newmont shares gained 1.18% last Friday, and have added another healthy 1.9% so far this Monday. That leaves Newmont at $60.06 a share at the time of writing.

All in all, it's been a volatile — but positive — first week and a bit for Newmont shares:

Let's see how the rest of this US-listed gold miner's ASX life goes.

The post Here's how the Newmont share price fared in its first week on the ASX appeared first on The Motley Fool Australia.

The most prominent, of course, is the takeover of S&P/ASX 200 Index (ASX: XJO) gold share Newcrest Mining Ltd (ASX: NCM) by American gold mining giant Newmont Corporation (NYSE: NEM).

Newcrest shares had their last day of trading on the ASX last week on 26 October. Shares closed out the past 12 months up 35%.

With the gold price up 21% over the past year to US$1,984.18 per ounce, investor interest in the gold mining sector has been rekindled.

As has the potential of further takeovers.

We'll get to one particular ASX gold stock that Romano Sala Tenna, portfolio manager at Katana Asset Management, believes is ripe for a takeover in a tick.

But first…

What's happening with the gold price?

There are a lot of company-specific factors that will determine how well a gold stock performs. But the price of gold is a big one to watch.

On that front, the World Gold Council's Q3 Gold Demand Trends report revealed that quarterly global demand hit 1,147 tonnes, 8% higher than the five-year average.

Over the quarter, central banks bought 337 tonnes of the yellow metal. The 800 tonnes central banks have now bought year to date is a new record high in the World Gold Council's data series.

And the outlook for the gold price remains strong.

World Gold Council senior markets analyst Louise Street said, "Looking forward, with geopolitical tensions on the rise and an expectation for continued robust central bank buying, gold demand may surprise to the upside."

Which brings us back to…

Why this ASX gold stock could be targeted for takeover

The ASX gold stock in question is De Grey Mining Ltd (ASX: DEG).

The De Grey Mining share price has lagged the broader gold miners' rally this year, as the company is still in the project development stage.

Management is targeting first gold from the company's Hemi gold mine – located in the Pilbara in Western Australia – in H2 2026.

De Grey recently released its Hemi Definitive Feasibility Study (DFS), reporting "outstanding physical and financial metrics". It's forecasting annual production of some 530,000 ounces per year at an all-in sustaining cost (AISC) of $1,229 per ounce.

On the balance sheet, the miner held $83 million in cash with no debt as at 30 September,

Sala Tenna believes the ASX gold stock is "considerably undervalued".

Citing the Hemi's status as "the third largest undeveloped gold project globally" alongside its ideal location in the Pilbara, Sala Tenna said he couldn't envision how "it doesn't get taken out at some point".

He added that the 530,000 tonnes per annum of gold production from the DFS only factored in reserves at Hemi, noting "substantial" potential upside on the horizon from ongoing drilling and exploration.

On the takeover front, Sala Tenna said, "For cashed-up global producers, this stock must surely be the standout on all metrics."

Katana Asset Management isn't alone in its bullish outlook for this ASX gold stock.

Goldman Sachs has a buy rating on De Grey Mining, with a price target of $1.40 per share.

That represents a 23% potential upside from the current $1.14 per share.

The post Is this ASX gold stock ripe for a takeover offer? appeared first on The Motley Fool Australia.

At present, Newcrest shares are going for $23.19 each. That's down a hefty 2% at present from yesterday's close of $23.65.

But this steep fall aside, it remains a monumental day in the history of Newcrest Mining. That's because today, Thursday 26 October, is the last day that Newcrest shares will trade on the ASX.

Investors who have been keeping abreast of news in the ASX gold mining space will be well aware that Newcrest has spent most of this year locked in a corporate courtship. The giant American gold miner Newmont Corporation (NYSE: NEM) has been pursuing a full takeover of Newcrest for most of the year.

The company's last (and successful) offer to acquire Newcrest came back in April. Back then, Newmont offered Newcrest shareholders 0.4 Newmont shares for every Newcrest share owned. That valued the company at $32.87 a share at the time.

In May, this offer was given the green light by the Newcrest board. But it was only earlier this month that Newcrest shareholders voted in an overwhelming 93% majority to go ahead with the takeover.

After all regulatory hurdles were overcome, the scheme was put into effect. Thus, today will be the last day that Newcrest shares will grace the ASX boards. Here's how S&P Dow Jones Indices put it this morning:

S&P Dow Jones Indices announced today that it will remove Newcrest Mining… from the S&P/ASX 200 Index, as a result of the scheme of arrangement whereby the company will be acquired by Newmont Corporation…

S&P Dow Jones Indices will remove Newcrest Mining Limited from the S&P/ASX 200 effective prior to the open of trading on Friday, October 27, 2023. Newcrest Mining Limited will be replaced by Newmont Corporation CDIs (ASX: NEM) in the S&P/ASX 200 effective prior to the open of trading on Friday, October 27, 2023.

Big ASX news: Newcrest shares to depart ASX 200 forever

As S&P pointed out, it's not exactly the end of the road for Newcrest shareholders though. For anyone who still owns the company as of the end of trading today, their Newcrest shares will be exchanged for ASX-listed CHESS Depository Interests (CDIs) in Newmont Group. That will occur at the rate of 0.4 Newmont CDIs for every Newcrest share owned, as we discussed above.

These Newmont CDIs will represent an indirect investment in the US-listed Newmont. Those Newcrest shareholders will then own a small part of a global gold mining behemoth with a market capitalisation of US$29.22 billion.

Newcrest has been listed on the ASX since 1987. So it's a big deal to see this company depart the stock exchange after more than three and a half decades of ASX membership. Interestingly, Newcrest used to be a part of Newmont prior to the 1980s. As such, this is a bit of a 'back to the future' moment for both companies.

Newmont CDIs will hit the ASX (and ASX 200 Index) tomorrow, where they will trade with the ticker code 'ASX: NEM'.

The post It's time to say goodbye to Newcrest shares on the ASX appeared first on The Motley Fool Australia.

In morning trade, the gold miner's shares are down almost 7% to $25.08.

Why is the Newcrest share price sinking?

Thankfully for the company's shareholders, today's decline isn't because of a Liontown Resources Ltd (ASX: LTR)-Albemarle Corp (NYSE: ALB) style takeover collapse.

The deal with Newmont Corporation (NYSE: NEM) is well and truly going ahead.

In fact, it is because of this that its shares are falling today. With the deal on the verge of completion, Newcrest is now permitted to pay a special dividend to its shareholders.

Earlier this month, the Newcrest board determined to pay a fully franked dividend of US$1.10 per share if the takeover went ahead. This equates to approximately A$1.73 per share at current exchange rates.

When is payday?

Newcrest plans to pay this special dividend to shareholders before the end of the month. A payday of 27 October has been noted by management.

And based on yesterday's Newcrest share price of $26.90, this represents a very attractive 6.4% dividend yield. This is broadly in line with how much the company's shares have fallen today.

To put that yield into context, it would mean that a $10,000 investment in Newcrest shares would result in special dividends of approximately $640.

Farewell Newcrest, hello Newmont

With the Federal Court of Australia approving Newmont's takeover of Newcrest, it won't be long until its shares leave the ASX boards. The last day of trading in Newcrest shares is expected to be 26 October.

After which, on 30 October, the scheme consideration of 0.4 Newmont shares for each Newcrest share held will be issued to eligible shareholders.

Newmont CDI (ASX: NEM) will then commence trading on the ASX boards a little over a week later on 7 November.

The post Why is the Newcrest share price sinking 7% today? appeared first on The Motley Fool Australia.

Shares in the S&P/ASX 200 Index (ASX: XJO) gold stock closed yesterday trading for $26.86. At time of writing, shares are swapping hands for $27.18 apiece.

For some context, the ASX 200 is up 0.9% at this same time.

Here's what's drawing investor interest today.

What did the ASX 200 gold miner report?

The Newcrest share price is well into the green today following the release of the ASX 200 gold miner's quarterly update.

Among the highlights of the three-month period, Newcrest shareholders widely voted in favour of United States-based Newmont Corporation's (NYSE: NEM) acquisition of 100% of Newcrest's shares by way of a scheme of arrangement.

With Newmont confirming that all required government regulatory approvals have been obtained, Newcrest said it will now seek approval from the Federal Court of Australia today, 17 October.

Should the court green light the deal, management expects it will become effective tomorrow, on 18 October. That will see the Newcrest share price frozen once shares are suspended from trading on the ASX at the close of trading on 26 October.

Management expects the implementation of the scheme to occur on 6 November.

As a sweetener for shareholders, the Newcrest board decided to pay a fully franked special dividend of US$1.10 per Newcrest share. Investors not yet holding shares and looking to bank that dividend will need to be quick, as the ASX 200 gold stock trades ex-dividend tomorrow.

What else happened during the quarter?

Over the three-month period, Newcrest reported gold production of 454,000 ounces. Copper production came in at 31,000 tonnes.

The All-In Sustaining Cost (AISC) for the gold produced was $1,397 per ounce. That delivered an AISC margin of $470 per ounce.

Gold production was 18% lower than the prior period, which came amid planned maintenance shutdowns during the quarter. Newcrest said this was consistent with prior years.

Newcrest interim CEO Sherry Duhe commented:

On behalf of the board and management team I would like to extend our sincere thanks to all our stakeholders for their outstanding contributions to the success of Newcrest.

Leading the Newcrest team has been a great privilege, and as the next chapter of Newcrest's story unfolds, I very much look forward to seeing the growth and development of our world-class portfolio of gold and copper assets as part of the combined group.

Newcrest share price snapshot

The Newcrest share price has been a strong performer over the past 12 months, up 60%.

The post Newcrest share price lifts as Newmont takeover approaches final approval appeared first on The Motley Fool Australia.

Owners of Newcrest Mining Ltd (ASX: NCM) shares will soon gain entitlement to their dividend. However, interested investors will need to be quick to buy if they want the dividend as well.

The gold miner is currently being acquired by Newmont Corporation (NYSE: NEM). Last week, Newcrest's shareholders voted in favour of the takeover going ahead, with 92.6% of votes supporting the deal.

Incoming special dividend and ex-dividend date

On 5 October 2023, Newcrest announced a special fully franked dividend of US$1.10 per Newcrest share, subject to the takeover going ahead.

Newcrest shares will go ex-dividend on 18 October 2023, which is Wednesday. That means ASX investors need to own shares before the end of trading tomorrow to gain entitlement to the incoming dividend.

Newcrest plans to pay this special dividend less than two weeks away, on 27 October 2023, so investors won't need to wait for long.

At the current Newcrest share price, the upcoming dividend could be approximately A$1.75 in Australian dollar terms. That would represent a cash dividend yield of 6.75% and a grossed-up dividend yield of 9.6%.

What next for Newcrest shares?

Newcrest shareholders will be entitled to 0.4 Newmont shares for each Newcrest share held on the record date, which is 30 October 2023.

The planned implementation date of the acquisition is 6 November 2023. Newmont CHESS depositary interests (CDIs) will list on the ASX on 26 October 2023.

The post Investors wanting to own Newcrest shares need to be quick! It's almost dividend time appeared first on The Motley Fool Australia.

As many investors would be aware, Newcrest is currently in the midst of a takeover proposal from the giant US-listed gold miner Newmont Corporation (NYSE: NEM).

Newcrest and Newmont have been locked in a courtship dance ever since the Coloradoan gold giant first revealed its interest in the ASX-listed Newcrest back in February. Newmont made a couple of offers in the following months. The final offer of 0.4 Newmont shares for every Newcrest share owned was made in early April. That valued Newcrest at $32.87 a share at the time.

At today's Newmont share price and currency rates, this offer is worth approximately $24.53 per Newcrest share.

In May, Newcrest's board announced that the offer had been given the board's approval and recommendation. And today, Newcrest shareholders got to voice their say on the offer as well.

Newcrest shares rise as Newmont merger overwhelmingly endorsed by shareholders

And it was almost unanimous. In a statement put out to ASX investors this afternoon, Newcrest confirmed that 92.63% of votes cast were in favour of the Newmont acquisition.

The proposed merger will now head to the Federal Court on 17 October next week for final approval. If the Court gives the green light, Newcrest's last day of ASX life will be 26 October later this month. Shareholders will then receive their new Newmont CHESS Depositary Interest (CDI) shares the following day.

Earlier this month, Newcrest announced that its shareholders will be treated to a special, fully franked dividend worth US$1.10 per share before the merger goes through if it is approved. Since all looks well on that front, Newcrest investors can pencil in 27 October for that payday.

The Newcrest Mining share price has reacted to this news well today so far. At the time of writing, Newcrest shares are up a rosy 0.9% at $26.03 each.

The post Guess what 93% of Newcrest shareholders just voted for appeared first on The Motley Fool Australia.

Will the market be able to build on this on Friday and end the week on a high? Here are five things to watch:

ASX 200 expected to sink

The Australian share market looks set to end the week on a disappointing note following a poor session on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open 60 points or 0.85% lower this morning. In late trade in the United States, the Dow Jones is down 0.4%, the S&P 500 is down 0.5%, and the NASDAQ is down 0.5%.

Oil prices mixed

ASX 200 energy shares Beach Energy Ltd (ASX: BPT) and Woodside Energy Group Ltd (ASX: WDS) will be on watch after a mixed night for oil prices. According to Bloomberg, the WTI crude oil price is down 0.1% to US$83.43 a barrel and the Brent crude oil price is up 0.65% to US$86.38 a barrel. IEA has downgraded its demand forecasts for 2024.

Newcrest scheme meeting

Newcrest Mining Ltd (ASX: NCM) shareholders will be voting on its takeover at a scheme meeting today. The gold miner is in the process of being acquired by US gold giant Newmont Corporation (NYSE: NEM) for 0.4 Newmont shares plus a US$1.10 per share special dividend for each Newcrest share they own.

Gold price falls

ASX 200 gold miners Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) could have a soft finish to the week after the gold price dropped overnight. According to CNBC, the spot gold price is down 0.3% to US$1,882.2 an ounce. A stronger US dollar and treasury yields weighed on gold.

ResMed shares named as buy

Analysts at Goldman Sachs feel that yesterday's ResMed Inc (ASX: RMD) share price selldown is a buying opportunity. It has looked into the new Ozempic data and isn't concerned. In fact, the broker "make[s] no changes to our forecasts, and reiterate our Buy-rating on RMD." Its price target of $33.00 implies almost 50% upside. Goldman has also left its earnings estimates for CSL Limited (ASX: CSL) unchanged.

The post 5 things to watch on the ASX 200 on Friday appeared first on The Motley Fool Australia.

At the time of writing, the gold miner's shares are up 0.5% to $24.06.

Why is the Newcrest share price rising?

Investors have been buying the company's shares this morning after it announced plans to reward shareholders with a special dividend.

According to the release, the Newcrest board has determined to pay a fully franked dividend of US$1.10 per share. This equates to approximately A$1.74 per share at current exchange rates.

Based on where the Newcrest share price closed yesterday's session, this represents a very generous 7.3% dividend yield.

What's going on?

As readers may be aware, Newcrest is currently in the process of being acquired by US gold mining giant Newmont Corporation (NYSE: NEM).

The two parties have agreed terms on a deal that will see Newcrest shareholders receive 0.4 Newmont shares for each share they own. The agreement also permitted Newcrest to pay a fully franked special dividend of up to US$1.10 per share.

Combined, at the time of the agreement, this implied an offer of $29.27 per share and valued Newcrest at $28.8 billion.

When is this dividend being paid?

The release reveals that eligible shareholders will be paid this special dividend later this month on 27 October. However, this is dependent on shareholders voting in favour of the takeover at a scheme meeting on 13 October. If the deal is not approved, the dividend will be cancelled.

To be eligible for the proposed dividend, you will need to own Newcrest shares before they go ex-dividend on 18 October.

The Newcrest share price is now up a sizeable 34% over the last 12 months.

The post Newcrest share price rises on big special dividend plans appeared first on The Motley Fool Australia.

That's the view of analysts at Bell Potter, which see huge upside ahead for the ASX 200 gold share.

Why this ASX 200 gold share?

According to the note, Bell Potter has responded positively to the company's definitive feasibility study (DFS) for its 100% owned Hemi Gold Project in Western Australia.

It believes the DFS points to the Hemi Gold Project being a tier one project. The broker said:

The DFS outcomes were in-line with our expectations. Overall, we view the HGP DFS as a key de-risking milestone for DEG and the project. It is a high confidence, comprehensive evaluation of the project and, in our view, confirms it as a global Tier 1 asset.

Potential takeover target?

Given the size and location of the project, the broker has suggested that the ASX 200 gold share could be an attractive option for Newcrest Mining Ltd (ASX: NCM) suitor Newmont Corporation (NYSE: NEM). In fact, it feels that the big gold miners can't afford to not acquire it. Bell Potter explains:

It also fits with Newmont Corporation's definition as follows: a gold project producing +500koz gold equivalent ounces per annum, with average AISC/oz in the lower half of the industry cost curve and a mine life >10 years in countries that, on average, are classified in the A and B credit rating ranges.

In our view, competitive advantage in the mining sector is built primarily on asset quality. This study shows the HGP is relevant to the world's largest gold mining companies and to be an asset they can't afford not to own.

Big upside ahead

Bell Potter has a speculative buy rating and a $1.80 price target on the company's shares. This implies a potential upside of 70% from current levels.

The post 'An asset they can't afford not to own': The ASX 200 gold share with 70% upside appeared first on The Motley Fool Australia.

Shares in the S&P/ASX 200 Index (ASX: XJO) gold stock closed yesterday trading for $25.95. In morning trade on Friday, shares are swapping hands for $25.85, down 0.4%.

This follows the release of Newcrest's full financial year results for the 12 months ending 30 June (FY23).

(*Note all figures in US dollars.)

Newcrest share price wobbles on mixed results

• Underlying profit of $778 million, down from $872 million in FY22
• Revenue of $4.5 billion, up 7% year on year
• Earnings before interest, taxes, depreciation and amortisation (EBITDA) of $2.1 billion, in line with FY22
• Net debt up 10% year on year to $1.5 billion
• Free cash flow of $404 million
• Fully franked final dividend of 20 US cents per share; total FY23 dividends of 55 US cents per share up 16% year on year

What else happened during the year?

Newcrest reported an 8% increase in gold production over the year to just over 2.1 million ounces. Copper production was up 10% from the prior year to 133,000 tonnes.

But the Newcrest share price won't be getting any tailwinds today from the 11% fall in full-year profits. The company said that was mainly due to lower copper prices than it realised in FY22, along with higher operating costs. Profits were also impacted by inflation and increased finance costs for its higher levels of debt.

Investors who want to grab the final dividend will need to own Newcrest shares at market close next Thursday. The ASX 200 gold stock trades ex-dividend on 18 August. Those dividends will hit eligible investors' bank accounts on 18 September. Payments made in Australian dollars will be converted from US dollars at the prevailing exchange rate on 21 August.

Among the biggest news of the year was Newcrest's binding scheme implementation deed with United States-based gold giant Newmont Corporation (NYSE: NEM) for Newmont to acquire 100% of Newcrest's shares by way of a scheme of arrangement. Newmont's initial expressions of interest earlier in the year sent the Newcrest share price sharply higher.

The Newcrest board has unanimously recommended shareholders vote in favour at a Scheme Meeting, which management expects to hold in October.

What did management say?

Commenting on the results that are giving the Newcrest share price a case of the wobbles in morning trade today, interim CEO Sherry Duhe said:

Our balance sheet remains in excellent shape, sitting comfortably within all our financial policy targets as we continued to invest in our organic portfolio of value generating projects…

We made significant progress against our growth strategy with key study milestones achieved at Cadia and Lihir, the signing of the Framework MOU at the world-class Wafi-Golpu copper-gold deposit, and continued success realised through the Brucejack transformation program.

Citing a number of other exploration successes over the year, Duhe added, "Our global gold and copper portfolio is very well placed for the future."

What's next?

Looking at what might impact the Newcrest share price in the year ahead, the company is forecasting 2.0 million to 2.3 million ounces of gold production and 120,000 to 140,000 tonnes of copper production, largely in line with FY23's results.

Newcrest expects an all-in-sustaining cost (AISC), which includes sustaining capital expenditure, of $2.2 billion to $2.6 billion.

Newcrest share price snapshot

The Newcrest share price is up 35% in a year, not including the two dividend payouts.

The post Newcrest share price dips amid higher FY23 dividends but lower profits appeared first on The Motley Fool Australia.

But the same can't be said of the Newcrest Mining Ltd (ASX: NCM) share price. Newcrest shares are having a shocker today. In early trade, the ASX 200 gold miner hit a low of $26.82.

Not only is that a significant slump, but it drags the Newcrest share price to a six-week low. Yep, the last time Newcrest was under $7 a share was back in early April. Right now, Newcrest shares have clawed back a little ground but are still down 1.71%, trading at $27.04 a share.

Since Newcrest's latest 52-week high, which occurred only just last month, Newcrest shares have lost around 10%.

So what's going on with this gold miner that has caused such a change of sentiment? After all, it has only been a few days since investors were buoyed by the news that Newcrest's takeover by the US gold mining giant Newmont got the green light.

Why is the Newcrest share price at a six-week low?

Well, it seems the culprit is a falling gold price. Earlier this month, gold looked like it was about to break its all-time record high of US$2,075 an ounce. Gold topped out at around SU4,050 an ounce in early May. But it has been falling steadily ever since. Today, the yellow metal is asking just over US$1,970 an ounce.

It appears that the prospect of higher interest rates in the United States might be to blame for this fall in value.

This explains why the Newmont bid isn't coming to the Newcrest share price's rescue. The deal is an all-scrip one, which will see Newcrest shareholders given 0.4 shares of Newmont for every Newcrest share owned. Since the Newmonth share price also depends on the gold price itself, both companies have been losing value in recent weeks.

Even so, Newcrest shares still remain up a pleasing 29.75% year to date, despite the near-10% drop we have seen recently.

The post Why is the Newcrest share price sitting at 6-week lows? appeared first on The Motley Fool Australia.

Yesterday, Newmont's acquisition of all of Newcrest's shares in exchange for 0.4 Newmont shares took a huge step forward with the Newcrest board unanimously recommending shareholders vote in favour of the latest offer.

Under the deal, Newcrest will be allowed to pay a fully franked special dividend of up to US$1.10 per share. Along with the 0.4 Newmont shares, that represents an implied Newcrest share price of $29.27.

And that implies an enterprise value for the S&P/ASX 200 Index (ASX: XJO) gold stock of $28.8 billion.

As you'd expect, that saw an uptick in the miner's stock yesterday, with shares finishing the day 1.5% higher.

But there's more afoot here than gold.

Newmont is also keen on Newcrest's copper assets.

Why copper is important to Newmont

The copper price has come down from the all-time highs reached in early 2022. But the red metal is still trading for US$8,272 per tonne, well above its five-year average.

And copper demand is expected to grow over the decade ahead. Pliable, non-corrosive, and conductive, the metal is widely used in the construction industry. It's also playing a vital role in the global shift to electrification, from EVs to wind turbines and more.

And Newcrest shares have significant exposure to copper.

On announcing the pending deal with Newmont, Newcrest chair Peter Tomsett said, "The combined group will set a new benchmark in gold production while benefitting from a material and growing exposure to copper…"

Indeed, Newcrest has a number of significant copper assets, like its New South Wales Cadia mine and the Wafi-Golpu mine located in Papua New Guinea.

The copper exposure that comes with the Newcrest acquisition certainly hasn't been lost on Newmont CEO Tom Palmer.

"If we've got an opportunity to get further exposure to copper – we've got a pretty healthy portfolio of copper today in terms of projects and operating size – but a growing exposure for copper is important to us," Palmer said (courtesy of The Australian).

As for Newcrest shares, Palmer said:

One of the really exciting things about the new Newcrest pipeline is that it's got gold, a lot of gold, but a good exposure to copper in it as well – which is going to be, as we all know, a very, very important metal for the world going forward.

That's something that will be part of our considerations as we think about the organic project pipeline that this combined portfolio is going to have.

How have Newcrest shares been tracking?

Newcrest shares have strongly outperformed the benchmark in 2023.

The gold miner has gained 38% year to date, compared to a 5% gain posted by the ASX 200.

The post Does the Newcrest Newmont deal shine a new light on copper? appeared first on The Motley Fool Australia.

Shares in the S&P/ASX 200 Index (ASX: XJO) gold stock closed Friday trading for $28.25. Shares are currently changing hands for $28.48.

This comes after Newcrest's board announced that they now approve of the latest takeover offer lobbed by United States gold miner Newmont Corporation (NYSE: NEM).

On 16 February, the Newcrest board rejected a prior offer, which at the time represented a 22% upside to the Newcrest share price.

Here's what happening today.

What's happening with the Newmont takeover offer?

This morning, the ASX 200 miner's board reported they have agreed to proceed with Newmont's proposal to acquire 100% of its shares by way of an Australian scheme of arrangement.

The board unanimously recommends shareholders vote in favour of the offer, barring a superior proposal.

Under the agreement, Newcrest shareholders will receive 0.400 Newmont shares for each share they hold. Newcrest will also be allowed to pay a fully franked special dividend of up to US$1.10 per share prior to completion of the takeover.

When aggregated with the franked special dividend, this represents an implied Newcrest share price of $29.27 per share, or 3.6% above Friday's closing price. And it works out to an implied enterprise value of $28.8 billion.

On completion, Newcrest shareholders will hold a 31% ownership of the combined gold mining group.

Management commentary

Commenting on the offer sending the Newcrest share price higher today, chair Peter Tomsett said:

This transaction will combine two of the world's leading gold producers, bringing forward significant value to Newcrest shareholders through the recognition of our outstanding growth pipeline.

In addition to the ongoing benefits of merging these premier portfolios, the combined group will set a new benchmark in gold production while benefitting from a material and growing exposure to copper and a market leading position in safety and sustainability.

Tomsett added, "We believe our shareholders and other stakeholders can look forward to an exciting and prosperous future."

Pending shareholder approval and other required conditions, Newcrest expects the scheme to be implemented by the end of the year.

Newcrest share price snapshot

The ASX 200 gold miner has been a very strong performer in 2023, benefiting from a rising gold price and the steady stream of Newmont takeover news.

That's all helped the Newcrest share price gain 37% since the opening bell on 3 January.

The post Newcrest share price lifts as $28.8 billion Newmont takeover greenlighted appeared first on The Motley Fool Australia.

Newmont offered to acquire its ASX 200 counterpart in February, but its bid was rejected by its Aussie rival. It later upped its all-scrip offer to an implied price of $32.87 per share.

The Newcrest share price slipped on open and is trading 1.38% lower at $28.49 in early morning trade.

Let's take a closer look at today's news of the $32 billion takeover facing the ASX 200 gold producer.

ASX 200 gold giant extends exclusivity period

The Newcrest share price is falling after the company announced Newmont will have an extra week to comb through its books.

Newmont will now have until 18 May before submitting a binding offer or losing its forfeiting its exclusivity. That is unless the period is extended further.

The US-listed rival-turned-suitor is said to have substantially completed its due diligence.

Newcrest investors have been offered 0.4 Newmont shares for each stock held in the ASX 200 gold company. That offer was declared best and final by the acquisition hopeful.

That represents an implied value of $32.87 per share and an enterprise value of $32 billion for the mining giant. Newcrest had a $25.8 billion market capitalisation as of Thursday's close.

The offer also allows the ASX 200 gold share to pay a fully franked special dividend of as much as US$1.10 per share.

If the tabled acquisition goes ahead, Newcrest shareholders will walk away with a 31.1% ownership in Newmont.

Newcrest share price snapshot

The Newcrest share price has had a ripper run as of late.

The stock has gained 38% since the start of 2023. It's also 17% higher than it was this time last year.

In comparison, the ASX 200 has lifted 4% year to date and 4% since this time last year.

The post Newcrest share price slips as exclusivity period for $32b takeover extended appeared first on The Motley Fool Australia.

Shares in the S&P/ASX 200 Index (ASX: XJO) gold miner closed yesterday trading for $24.31 and are currently trading for $23.93, down 1.52%.

It's not just Newcrest shares under pressure.

Most ASX gold stocks are down today, as witnessed by the 1.6% decline in the S&P/ASX All Ordinaries Gold Index (ASX: XGD).

This follows similar declines in US-listed gold stocks overnight, likely spurred by another small retrace in the gold price. At US$1,835 per ounce, the gold price is down 6% since 1 February.

What else are ASX 200 investors considering?

ASX 200 investors will be running their slide rules over Newcrest shares following two price-sensitive market releases this morning.

First, as The Motley Fool reported earlier this morning, the gold miner has rejected the takeover proposal lobbed earlier this month by United States-based gold giant Newmont Corporation (NYSE: NEM).

Newmont had offered 0.380 Newmont shares for each Newcrest share held to acquire 100% of the Aussie miner.

At the current Newmont share price of US$46.30 (AU$67.29), that works out to an offer price of $25.57 per share, some 7% above the current Newcrest share price.

In declining the offer, management said it's open to considering better offers, but that the current offer doesn't "represent sufficient value" for shareholders.

What else is impacting Newcrest shares today?

The ASX 200 gold miner also released its half-year results today (1H FY23).

(Note, the figures reported are in US dollars.)

Newcrest reported a 24% increase in revenue from the prior corresponding period to $2.12 billion. Earnings before interest, taxes, depreciation and amortisation (EBITDA) also increased 24% to $919 million.

And income investors should be pleased with Newcrest's interim dividend of 15 US cents per share and a special dividend of 20 US cents per share, both fully franked. The special dividend reflects the full distribution of funds received from Lundin Gold for the early repayment of the gold prepay credit facility.

Meanwhile, the miner's All-In Sustaining Cost (AISC) dropped 8% compared to 1H FY22 to $1,089 per ounce.

The AISC margin increased by 17% to $585 per ounce, despite a 2% reduction in the realised gold price to $1,696 per ounce.

The miner also reported it had completed an extensive safety review at its Brucejack mine following a tragic underground fatality in October.

As at 31 December, the company held $2 billion in cash and committed undrawn bank facilities.

"Newcrest is in an excellent position, and with positive momentum for gold and copper prices continuing into 2023, we look forward to a stronger second half of the year," Newcrest CEO Sherry Duhe said.

How have Newcrest shares been tracking?

As you can see in the chart below, Newcrest shares are off to a great start in 2023, up 16% despite today's retrace.

The post Why are Newcrest shares slipping on Thursday? appeared first on The Motley Fool Australia.

The Newcrest share price jumped 14% immediately upon the news, although its board has not yet accepted nor rejected the $24 billion offer.

While there is some debate as to whether Newmont should be offering a bit more to Newcrest shareholders, what if eventually a deal is done?

As an all-scrip deal, Newcrest investors will receive Newmont stock upon acquisition.

But what if you don't want to own US stocks? How do you cash out?

Shaw and Partners portfolio manager James Gerrish, in a Market Matters Q&A, explained how one could do that:

Newmont could do a Resmed

According to Gerrish, Newmont will likely list on the ASX once the acquisition completes. 

"We would assume if Newmont [is] successful, they would create a dual listing structure, so the merged entity would remain listed on the ASX."

The merged entity could do this by listing in Australia as a chess depository interest, which is a stock that allows investors to simulate owning Newmont shares on the NYSE.

Some current examples of this are US healthcare device maker Resmed CDI (ASX: RMD) and UK banking group Virgin Money UK CDI (ASX: VUK).

Once the CDI is created, it's easy to cash in.

"Holders could then sell their stock if they wanted to as normal."

So that's all well and good for Newcrest shareholders, but what's in it for Newmont? Why would it go to the expense of listing in a foreign country?

Gerrish explained there is good incentive for overseas businesses to also list on the ASX.

"One of the reasons why they would do this deal is to tap into the funding pool in Australia," he said.

"So a listing here makes total sense."

Newcrest shares are up 9% over the past 12 months while paying a dividend yield of 1.6%.

Meanwhile, the Newmont stock price is down 21.4% for the same period while returning a dividend yield of 4.6%. 

The post How do I cash in my Newcrest shares if US giant Newmont takes over? appeared first on The Motley Fool Australia.

As we covered this morning, Newmont has indicatively proposed to acquire Newcrest in full in an all-scrip, conditional offer. Newmont has put up 0.38 Newmont shares for every Newcrest share.

This values the ASX 200 gold miner at around $27.40 per share, taking into account exchange rates and Newmont's share price. That represents a 22% premium to Newcrest's closing share price on Friday.

Newmont has already made an offer for Newcrest, previously offering 0.363 Newmont shares for every Newcrst share. But this was quickly rejected at the time. Newcrest shunned the deal on valuation grounds.

But this higher offer has definitely gotten some more consideration from Newcrest. The company hasn't rejected the offer. But it hasn't yet accepted it either. Here's what Newcrest said in its announcement today:

The Newcrest Board, together with its financial and legal advisers, is considering the Indicative Proposal.

The Newcrest Board advises that shareholders need not take any action in relation to the Indicative Proposal and remains fully committed to acting in the best interests of Newcrest shareholders.

So perhaps Newcrest's management is trying to wring a little extra value out of Newmont.

Could Newmont up its offer for shares of ASX 200 gold miner Newcrest?

Shareholders will certainly be hoping so, anyway. According to reporting in The Australian today, at least one shareholder stated that they didn't believe that the offer was high enough, and "would prefer a cash offer" for Newcrest shares.

Shareholders are reportedly unhappy with the recent performance at Newcrest. Here's some of what was reported:

[Shareholders] believed that the company had been deploying too much of their capital in business interests elsewhere and needed to focus more of its attention on its core operations and ensure they were firing.

So it's unclear whether these concerns will end up influencing any future offer from Newmont. Like with any transaction, Newmont will be hoping to acquire Newcrest at the cheapest price possible, just like Newcrest wants the best price it can get.

Only time will tell if Newmont is prepared to put even more on the table in its quest to acquire Newcrest. So watch this space.

In the meantime, the current Newcrest Mining share price gives this ASX 200 gold miner a market capitalisation of $20.65 billion, with a dividend yield of 1.58%.

The post Will Newmont offer more for Newcrest shares? appeared first on The Motley Fool Australia.

To give you a broad picture, the S&P/ASX All Ordinaries Gold Index (ASX: XGD) has gained 13.2% since the opening bell on 4 January.

By comparison, the All Ordinaries Index (ASX: XAO) has lost 2.2% year to date.

ASX gold shares shining bright amid rising gold prices

The common tailwind that all ASX gold shares have been enjoying is the increasing price of the yellow metal they dig from the ground.

On 4 January, when the ASX opened for the first day of trading in 2022, gold was trading for US$1,801 (AU$2,401) per troy ounce, according to data from Bloomberg. Today that same ounce is worth US$1,969, an increase of more than 9%.

That increase helped push the Evolution Mining Ltd (ASX: EVN) up 10.3% this calendar year. Meanwhile, the Northern Star Resources Ltd (ASX: NST) share price has gained 15.9% while Regis Resources Limited (ASX: RRL) shares are up 19.5% year to date.

Of course, that's all water under the bridge now.

So, what can investors expect for gold and ASX gold shares next?

"It appears gold could be about to kick off a bull trend supported by higher borrowing costs (yields), Russian tension lingering, and lockdown concerns," says Jessica Amir, Australian market strategists at Saxo Markets. "Gold has historically outperformed equities every time the Fed rose interest rates, with a suite of hikes."

In the year ahead, Saxo sees gold stocks "thriving and seeing higher earnings and share price growth".

An international gold stock to consider

Atop a broad choice of outperforming ASX gold shares, there are numerous large-cap gold stocks listed in the United States, and elsewhere.

Amir singles out Newmont Corporation (NYSE: NEM) as a gold share to consider for investors who believe gold will continue to rally.

According to Amir:

The biggest gold company in the world is arguably Newmont, which makes 86% of its money from gold, and 5% from silver. Newmont shares are trading 35% up this year, and given its 2022 earnings are expected to rise (Q1 earnings due 22 April), Newmont is one to watch.

You'd also expect the company to upgrade its outlook for 2022 for gold, supporting its income rising and earnings (EBITDA). Remember rising earnings generally supports share price growth.

Whether you're looking into ASX gold shares or international companies, keep an eye on those factors Amir pointed out that could impact the price of gold.

The post 'Thriving' ASX gold shares to see more growth in 2022: expert appeared first on The Motley Fool Australia.