Newcrest’s growth strategy is Americas focused, not just in Canada

Australia-based Newcrest Mining (ASX: NCM; TSX: NCM; PNGX: NCM) is building critical mass in Canada with the second significant acquisition announced as the mining major sets its sights on organic and mergers and acquisitions-based growth in the Americas, managing director and CEO Sandeep Biswas tells The Northern Miner.

In 2019, Newcrest took a 70% interest in Imperial Metals' (TSX: III) Red Chris copper-gold mine in northern British Columbia, and more recently, the $3.84 billion (US$2.8 billion) acquisition of Pretium Resources, announced on November 9, to gain control of its high-grade Brucejack operation in British Columbia.

"Newcrest specializes in what I call tier-one deposits," Biswas says in an interview. "We have a clear strategy where we want to continue to gain exposure to tier-one deposits, which in our terminology is typically 300,000-plus ounces per year equivalent comprising copper if available, and gold."

Further, the company has a penchant for long-lived assets, typically 15 years or longer and assets also must be low-cost with the ability to go into the first quartile range, according to Biswas.

"If you look at Brucejack, it fits all the criteria. And it's in a tier-one jurisdiction as well, which gives us some geographical spread and reduces the geographical risk as well.