The gold mining giant, Newmont Corporation NEM has announced the appointment of Peter Wexler as its new chief legal officer.
Major Change: Wexler is set to take up his new role at Newmont’s headquarters in Denver.
Bringing with him a wealth of experience, having previously served as chief legal officer at Schneider Electric (SBGSF), Wexler’s impressive track record includes managing complex legal, risk management, and compliance matters across 32 countries.
Wexler’s recognition as one of the Financial Times’ Top 20 General Counsels in the World in 2022 underscores his remarkable achievements.
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.
Now Read: Barrick Gold Denies First Quantum Rumors, Focuses On Developing Existing Tanzanian Projects
Strategic Significance: Wexler’s appointment underscores Newmont’s commitment to fortifying its leadership amidst the current surge in mergers and acquisitions within the sector. This follows Newmont’s recent $16.8 billion acquisition of Newcrest Mining, further solidifying its status as the largest global gold producer.
Furthermore, this strategic move enhances Newmont’s portfolio, bringing its total to 10 Tier 1 gold mines, each characterized by high quality, large-scale operations with low production costs, boasting an annual output of approximately 8 million ounces and reserves of 144 million ounces. The management anticipates pre-tax synergies of $500 million in the first two years alone.
Given its strong position, with most of its portfolio located in low-risk jurisdictions like the U.S., Canada, and Australia – crucial in times of heightened geopolitical turmoil – Newmont’s “A-” rating from Fitch reflects its unrivaled size, scale, and stable operating diversification.
Newmont stands to gain an additional $400 million in free cash flow (before dividends) for every $100/oz increase in the gold price. Considering the promising gold outlook for 2024 and the appointment of a seasoned professional like Wexler, the prospect of further consolidation in the sector seems increasingly probable.
Now Read: Nickel’s Nosedive: 40% Yearly Drop Puts Miners In A Tight Spot
Image: Shutterstock