How can we help?

• Summary
• Tax implications
• How to handle this in Sharesight
• FAQ

---

Summary

On 15 May 2023, Newcrest Mining Limited (ASX: NCM) entered into a Scheme Implementation Deed with Newmont Corporation (NYSE: NEM) for the acquisition of all of Newcrest's ordinary shares by Newmont Overseas Holdings Pty Ltd, a wholly owned subsidiary of Newmont, under a scheme of arrangement (Scheme). The acquisition combined Newcrest's gold and copper assets in Australia, Papua New Guinea and Canada with Newmont's global portfolio.

• Scheme meeting: 13 October 2023 – Newcrest shareholders voted in favour of the Scheme
• Court approval: 17 October 2023
• Special dividend: US$1.10 per share (fully franked), paid 27 October 2023
• Last day of trading for NCM: 26 October 2023
• Scheme record date: 30 October 2023
• Implementation date: 6 November 2023
• Delisting date: 7 November 2023
• Acquisition consideration: 0.4 Newmont CHESS Depositary Interests (CDIs), traded on the ASX as NEM, for each Newcrest share held (Canadian register holders received 0.4 Newmont shares and PNG register holders received 0.4 Newmont PDIs)

Each Newmont CDI represents a beneficial interest in one share of Newmont common stock. For more details, see the Implementation of Scheme announcement and the ATO Class Ruling CR 2024/18.

---

Tax implications

Capital Gains

Working out your net capital gain or net capital loss for the 2024 income year

According to the ATO Class Ruling CR 2024/18, CGT event A1 happened when you disposed of your Newcrest shares on the Implementation Date (6 November 2023). The capital proceeds for each Newcrest share is the market value of the 0.4 Newmont CDI you received, which the ATO accepts as A$23.29 (A$22.54 for 0.4 of a Newmont share, A$24.01 for 0.4 of a Newmont PDI).

Scrip for scrip rollover relief

If you make a capital gain on your Newcrest shares, you may be eligible to choose scrip for scrip rollover relief. This means you can defer paying capital gains tax on the disposal of your NCM shares when you receive NEM CDIs in exchange.

• If you choose rollover: the capital gain is disregarded. The cost base of your Newmont CDIs is your total Newcrest cost base divided by the number of Newmont CDIs you received, and your Newmont CDIs are treated as acquired on the original date you acquired your Newcrest shares (for CGT discount purposes).
• If you don't (or can't) choose rollover: you must include the capital gain or loss in your 2024 income year. The cost base of your Newmont CDIs is the market value of the Newcrest shares you gave up, which the ATO accepts as A$23.33 per Newcrest share, and the acquisition date is 6 November 2023.

Foreign resident shareholders generally disregard any capital gain or loss unless their Newcrest shares were taxable Australian property.

To work out your net capital gain or net capital loss for the year, you must take into account:

• any other capital gains or capital losses you made in the 2024 income year from other transactions
• any net capital losses carried forward from earlier income years
• whether you can apply the CGT discount to any part of your net capital gain (you must have held your Newcrest shares for at least 12 months before the Implementation Date)

Dividends

The fully franked final dividend (US$0.20, paid 18 September 2023) and special dividend (US$1.10, paid 27 October 2023) are not part of the capital proceeds. Australian residents who received them in Australian dollars include A$0.3125 and A$1.7244 per share respectively in their assessable income, plus the franking credits if they are a qualified person.

---

How to handle this in Sharesight

Option 1: If you choose scrip for scrip rollover relief

1 – On the Overview page, select NCM.ASX

2 - Select Edit holding tab

3 - Select Merge this holding

4 - Date of Merger: 6 November 2023

5 - New holding: Search: NEM.ASX

6 - Quantity: 0.4 new NEM CDIs for every NCM share

For example, 1,000 NCM shares gets 400 NEM CDIs.

7 - Select Save changes

Your original NCM cost base and purchase dates carry over to your NEM.ASX holding.

Option 2: If you do not choose scrip for scrip rollover relief

1 – On the Overview page, select NCM.ASX

2 - Select Add trade or adjustment

3 - Trade type: Sell

4 - Trade date: 6 November 2023

5 - Quantity: All of your NCM shares

6 - Price: A$23.29 per share

Note: A$23.29 applies if you held your NCM shares on the Australian share register (most ASX investors). If you held your shares on the Canadian or Papua New Guinea register, refer to the FAQ Did I receive Newmont shares or Newmont CDIs? for the value to use.

7 - Select Save trade

8 - On the Overview page, select Add investment > Individually add trade and search NEM.ASX

9 - Trade type: Buy, Trade date: 6 November 2023

10 - Quantity: 0.4 x your total NCM shares (e.g. 1,000 NCM shares = 400 NEM CDIs)

11 - Price: A$58.325 per NEM CDI (equivalent to A$23.33 per NCM share given ÷ 0.4)

12 - Select Save trade

---

FAQ

What happens to my shares after the acquisition?

After the Scheme was implemented on 6 November 2023, Newcrest shareholders (other than Ineligible Foreign Shareholders) received 0.4 Newmont CDIs for each Newcrest share held on the Scheme Record Date (30 October 2023). Newcrest was then removed from the official list of the ASX on 7 November 2023.

Do I need to take any action?

Your NCM shares were transferred to Newmont and replaced with Newmont CDIs, traded under NEM.ASX. You typically don't need to take any action, as your broker or the share registry handles the share swap automatically. However, you will need to record the acquisition in Sharesight as outlined above.

What do I receive for my shares?

Unless you are an Ineligible Foreign Shareholder, you received 0.4 Newmont CDIs for each Newcrest share held as at the Scheme Record Date. You also received the fully franked special dividend of US$1.10 per share paid on 27 October 2023.

If you are an Ineligible Foreign Shareholder, the Newmont shares you would have otherwise been entitled to were issued to a Sale Agent and sold on the NYSE, and your share of the net sale proceeds was paid to you.

What is the difference between NEM.ASX and NEM on the NYSE?

NEM.ASX are CHESS Depositary Interests (CDIs). Each CDI represents a beneficial interest in one Newmont share listed on the NYSE, allowing Australian investors to hold and trade Newmont on the ASX in Australian dollars.

Did I receive Newmont shares or Newmont CDIs?

It depends on which part of the Newcrest share register you held your shares on at the Scheme Record Date (30 October 2023). According to the ATO Class Ruling CR 2024/18:

Newcrest share register	You received (per NCM share)	Trades as	Capital proceeds (per NCM share)
Australia	0.4 Newmont CDI	NEM.ASX	A$23.29
Canada	0.4 Newmont share	NEM (NYSE / TSX)	A$22.54
Papua New Guinea	0.4 Newmont PDI	NEM (PNGX)	A$24.01

If you held your NCM shares through an Australian broker on the ASX, you were on the Australian register and received Newmont CDIs (NEM.ASX). If you held your shares on the TSX, you were on the Canadian register and received Newmont shares. You can also check the holding statement from Computershare or your broker account to confirm which you received.

If you do not choose scrip for scrip rollover relief, use the capital proceeds value for your register as the sell price in Option 2, step 6. The cost base of your new Newmont holding is A$23.33 per Newcrest share given up, regardless of register.

Why are the NCM sell price and NEM buy price different in Option 2?

If you do not choose scrip for scrip rollover relief, the ATO Class Ruling CR 2024/18 uses two different values:

• NCM sell price (capital proceeds): the market value of the 0.4 Newmont CDI, share or PDI you received for each Newcrest share. For Australian register holders this is A$23.29 per NCM share (A$22.54 for the Canadian register and A$24.01 for the Papua New Guinea register).
• NEM buy price (cost base): the market value of each Newcrest share you gave up, which the ATO accepts as A$23.33 per NCM share for all registers.

As you received 0.4 NEM for each NCM share, the NEM buy price per CDI or share is A$23.33 ÷ 0.4 = A$58.325.

For example, if you held 1,000 NCM shares on the Australian register:

• Sell 1,000 NCM at A$23.29 = A$23,290 capital proceeds
• Buy 400 NEM (1,000 × 0.4) at A$58.325 = A$23,330 total cost base (1,000 × A$23.33)

If you prefer, you can enter the total cost base (A$23.33 × your number of NCM shares) instead of the price per NEM.

Is this acquisition a taxable event?

This acquisition is a CGT event. However, you may be eligible for scrip for scrip rollover relief if you make a capital gain on your NCM shares. Consult with a tax professional for personalised advice.

You can calculate your estimated tax liability using our CGT calculator. If you have more than one trade, you can add them in Sharesight and run the CGT report to calculate your tax liability.

Will Sharesight track my cost base if I choose rollover relief?

Yes, Sharesight accurately tracks your cost base. You can find your cost base information in the Historical Cost report.

If you don't have a Sharesight account, sign up here for free, enter the date you bought NCM, then follow the steps above to keep track of the cost base.

How does this acquisition affect my portfolio concentration risk?

Your exposure changes from an Australian-listed gold miner to a US-domiciled global gold producer. You can find out your portfolio diversification by market, sector and country using the Diversity report.

Where can I find the official announcement and details?

You can find more details in the Implementation of Scheme announcement and the ATO Class Ruling CR 2024/18.

The guide above is a suggestion on how to handle the corporate action in Sharesight and is not financial or tax advice. We advise you to consult your financial advisor or accountant. We also encourage you to review the official documents for full details.