Speaking at the 2023 Gold Forum Americas conference on Tuesday, Palmer says he expects the combined business to deliver around $500 million of annual synergies, with a target of $2 billion in cash from portfolio optimization.

The Newcrest acquisition, says Palmer, is expected to strengthen Newmont’s portfolio and create the best collection of Tier 1 gold and copper assets concentrated in favorable mining jurisdictions.

The biggest value drivers of the transaction will come from Newcrest’s two Tier 1 operations, Cadia and Lihir, located in Australia and Papua New Guinea, respectively.

The Newmont executive draws comparison to what the company experienced at the Peñasquito in Mexico, which has returned some $5.8 billion since its acquisition over four years ago.