Newmont Mining Corporation (NYSE: NEM) (“Newmont” or “the Company”)
today announced it completed the sale of its 44 percent stake in the
Penmont joint venture (“Penmont”) pursuant to the announcement made by
the Company on September 12, 2014 for US$450 million in cash proceeds.
In addition to Newmont’s equity interest, Fresnillo plc (“Fresnillo”)
acquired all assets and liabilities relating to Penmont.
“We are pleased to have completed the sale of our stake in Penmont as
part of our ongoing effort to increase shareholder value and further
strengthen Newmont's financial flexibility,” said Randy Engel, Newmont’s
Executive Vice President for Strategic Development. “With the closing of
this sale, Newmont has generated US$1.3 billion from divesting non-core
assets at fair value, better positioning the Company to fund development
of the next generation of profitable operations in our optimized project
pipeline.”
Penmont produced approximately 183,000 attributable ounces of gold in
2013, and at December 31, 2013 Newmont reported 2.2 million attributable
ounces of gold reserves. At December 31, 2013, Newmont recognized net
book value of the Penmont joint venture totaling approximately $365
million.
About Newmont
Founded in 1921 and publicly traded since 1925, Newmont is a leading
producer of gold and copper. Headquartered in Colorado, the Company has
approximately 29,000 employees and contractors, with the majority
working at managed operations in the United States, Australia, New
Zealand, Peru, Indonesia and Ghana. Newmont is the only gold company
listed in the S&P 500 index and in 2007 became the first gold company
selected to be part of the Dow Jones Sustainability World Index. Newmont
is an industry leader in value creation, supported by its leading
technical, environmental, and health and safety performance.
Cautionary Statement
This release contains “forward-looking statements” within the meaning of
applicable securities laws that are intended to be covered by the safe
harbors created by those laws. Such forward-looking statements may
include, without limitation, statements regarding future financial
flexibility, shareholder value and development of the project pipeline,
and other statements that are not historical facts. While such
forward-looking statements are expressed in good faith and believed by
Newmont to have a reasonable basis, they are subject to risks and
uncertainties (as disclosed in Newmont’s public filings), which could
cause actual results to differ materially from future results expressed,
projected or implied by the forward-looking statements. These
forward-looking statements are not guarantees of future performance.
Newmont does not undertake any obligation to release publicly revisions
to any forward-looking statement or to comment on expectations of, or
statements made by Fresnillo or other third parties, except as may be
required under applicable securities laws. Investors should not assume
that any lack of update to a previously issued forward-looking statement
constitutes a reaffirmation of that statement. Continued reliance on
forward-looking statements is at investors' own risk.
Copyright Business Wire 2014