Newmont Fortifies Management On Heels Of $17B Deal, Appoints New Chief Legal Officer

Gold mining firm Newmont Corporation NEM appointed Peter Wexler as chief legal officer.

What Happened: Wexler will join Newmont's headquarters in Denver.

He previously served as chief legal officer at Schneider Electric (SBGSF). Over the last 15 years, his role at Schneider included overseeing legal, risk management, and compliance matters, leading a team of over 300 professionals across 32 countries.

Wexler’s achievements included managing numerous complex deals worldwide and earned him recognition as one of the Financial Times’ Top 20 General Counsels in the World in 2022.

Newmont president and CEO Tom Palmer expressed confidence in Wexler’s appointment, highlighting its significance in the company’s continued growth.

“Peter brings decades of world-class legal and risk management experience at global organizations, which will be invaluable as Newmont continues to grow, building on its position as the world's leading gold mining company and robust copper producer,” he said.

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Why It Matters: Palmer's words will undoubtedly catch analysts' interest in a sector currently booming with mergers and acquisitions. Newmont's recent $16.8 billion purchase of Newcrest Mining solidified its status as the largest global gold producer.

The deal also helped Newmont rejuvenate its portfolio, achieving 10 Tier 1 gold mines (high-quality, large-scale mines with low production costs) with an annual output of approximately 8 million ounces and reserves of 144 million ounces. Management expects $500 million in pre-tax synergies just within the first two years.

Yet, the company is in a good position for more strategic acquisitions. First, its portfolio is located mostly in low-risk jurisdictions like the U.S., Canada, and Australia, which is important in times of heightened political instability.

Secondly, the company has an "A-" rating from Fitch, indicating its unrivaled size, scale, operating diversification with a stable outlook.

Newmont estimates it would generate $400 million in additional free cash flow (before dividends) for every $100/oz increase in the gold price.

With an optimistic gold outlook for 2024, and a seasoned professional like Wexler at the legal helm, it would be unsurprising to see Newmont consolidate the sector even further in the near future.

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