##  [# Gold Miner ETF Jumps as 2 Heavyweights Combine ](/sections/features/gold-miner-etf-jumps-2-heavyweights-combine) 

 

# Gold Miner ETF Jumps as 2 Heavyweights Combine 

 

 

Newmont Corp. announced it reached an agreement to purchase Australian rival Newcrest Mining for $19.2 billion.



 

 

 

 

 [![sumit](/sites/default/files/styles/author_image_icon/public/2023-03/Sumit_0.png?itok=SO-7S5SH "sumit")](/authors/sumit-roy) 

[By Sumit Roy ](/authors/sumit-roy)

 May 16, 2023

 Edited by: Lisa Barr

 

 

 [ + Follow ](/etf/login) 

     Share  <a class="a2a a2a_button_email"> Email </a><a class="a2a a2a_button_linkedin"> LinkedIn </a><a class="a2a a2a_button_facebook"> Facebook </a><a class="a2a a2a_button_x"> X (Twitter) </a> 

 

 

 

 

 

 

 

 

  
            googletag.cmd.push(function() {
                googletag.display('js-dfp-tag-article_page_302x26');
            });
    
    

 

 

  

 



 

 

  Loading 

 

 



 

 

The world’s biggest gold mining company is getting even bigger.

On Sunday, Newmont Corp. announced it had reached an agreement to purchase Australian rival Newcrest Mining for $19.2 billion, a move that combines the world’s largest and sixth-largest gold mining companies.

“The combination of Newmont and Newcrest represents an exceptional value proposition for shareholders and other stakeholders. It creates an industry-leading portfolio with a multi-decade gold and copper production profile in the world’s most favorable mining jurisdictions,” said Tom Palmer, \[resident and CEO of Newmont.

The deal comes more than three months after Newcrest rejected Newmont’s initial $16.9 billion bid. That prompted the Colorado-based acquirer to sweeten the deal.

It also comes three years after Newmont acquired Goldcorp for $10 billion, which at the time was the largest acquisition in the industry, and put Newmont over the top of Barrick Gold to become the world’s No. 1 producer.

A month after announcing that acquisition, Barrick made a hostile takeover attempt on Newmont, which the latter rejected.

## **The ETF**

The $14 billion [**VanEck Gold Miners ETF (GDX)**](/GDX), which holds stocks of both Newmont and Newcrest, jumped more than 1% on Monday.

GDX currently has a 9.5% stake in Newmont and a 5% stake in Newcrest. The market-cap-weighted ETF tracks the NYSE Arca Gold Miners Index, which holds a basket of globally listed companies in the gold and silver mining industry.

Following the acquisition, Newcrest will fall out of the portfolio, while Newmont’s weighting will get larger.

Many investors consider GDX a higher-leverage way to bet on the price of gold, and they’ll be watching. The fund has gathered $370 million in new assets over the past 12 months.

On a year-to-date basis, the price of the ETF is up 18%, better than the 11% gain for gold itself. Over the past five years, GDX is up 61% versus 56% for gold.

*Contact Sumit Roy at* sumit.roy@etf.com

 
            googletag.cmd.push(function() {
                googletag.display('js-dfp-tag-in_article_unit');
            });
    
    

 

 



 

 

 [ + Follow ](/etf/login) 

 [ Sumit Roy Senior ETF Analyst ](/authors/sumit-roy) 

 

 

  Sumit Roy is the senior ETF analyst for etf.com and author of (Don't) Invest Like a Pro. He creates a variety of content for the platform, including…   [View Bio](/authors/sumit-roy)

 



 

 


 Related Topics  [Gold](http://www.etf.com/topics/gold) 

 [Precious Metals](http://www.etf.com/topics/precious-metals) 

 [Commodities](http://www.etf.com/topics/commodities) 

 [Equity](http://www.etf.com/topics/equity)