Newmont Mining Corporation (NYSE: NEM) (“Newmont” or “the Company”)
today announced it made a $100 million prepayment toward a five-year,
$575 million unsecured amortizing term loan received in March. The term
loan was used to repay $575 million of convertible debt that matured in
July of this year. Proceeds recently received as a result of the
government of Suriname exercising its option to participate in a
fully-funded, 25 percent equity ownership stake in the Merian Gold
Project were included in the $100 million prepayment.
“We continue to improve our financial flexibility and strengthen our
balance sheet despite a lower price environment,” said Laurie Brlas,
Executive Vice President and Chief Financial Officer. “We have generated
$1.7 billion in cost and productivity improvements and $1.4 billion in
the sale of non-core assets since 2013, giving us the means to pay down
debt and invest in profitable growth. Taken together, these efforts
contribute to increasing shareholder value and maintaining our
investment grade rating.”
Newmont has approximately $5 billion in cash, revolver capacity and
marketable securities on its balance sheet and will continue to evaluate
and optimize the best use of free cash flow, including investing in
profitable projects, repaying debt and returning capital to shareholders.
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 news release may contain “forward-looking statements” within the
meaning of Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended, that are
intended to be covered by the safe harbor created by such sections. Such
forward-looking statements may include, without limitation, expectations
with respect to future financial flexibility and shareholder value,
future debt prepayments, maintenance of debt ratings, portfolio
optimization, future cost improvements and savings, and future balance
sheet and financial strength. Where Newmont expresses or implies an
expectation or belief as to future events or results, such expectation
or belief is expressed in good faith and believed to have a reasonable
basis. However, forward-looking statements are subject to risks,
uncertainties and other factors. As such, actual outcomes may differ
materially from those anticipated by the forward-looking statements. For
a discussion of risks, see the Risk Factors section in Newmont’s 2013
Annual Report on Form 10-K, which is on file with the U.S. Securities
and Exchange Commission (“SEC”) at www.sec.gov,
as well as Newmont’s other recent SEC filings. Newmont does not
undertake any obligation to publicly issue revisions to any
“forward-looking statement,” to reflect events or circumstances after
the date hereof, or to reflect the occurrence of unanticipated events,
except as may be required under applicable securities laws.
Copyright Business Wire 2014