Newmont Mining Corporation (NYSE: NEM) (“Newmont” or “the Company”)
announced it has closed the sale of its equity stake in the Valcambi
gold refinery in Switzerland to a subsidiary of Rajesh Exports Ltd
(“REL”) for total net proceeds of US$119 million. Newmont will continue
its existing refining relationships with Valcambi under the new
ownership structure.
“This sale further strengthens Newmont’s balance sheet and enhances our
focus on our core business,” said Randy Engel, Executive Vice President
for Strategic Development. “Since mid-2013, we have executed $1.6
billion in non-core asset sales, allowing us to further pay down debt,
invest in new, profitable production and return capital to shareholders.”
The Valcambi refinery began operations in 1961 in Balerna, Switzerland,
and Newmont first acquired its equity interest in 2004 from Credit
Suisse. Valcambi has grown to be one of the world’s largest gold and
silver refineries, with a significant manufacturing business. REL, a
leading gold jewelry manufacturer and one of the largest direct gold
consumers in the world, has been a longstanding customer of Valcambi.
About Newmont
Newmont is a leading gold and copper producer. The Company employs
approximately 28,000 employees and contractors, with the majority
working at managed operations in the United States, Australia, Ghana,
Peru, Suriname and Indonesia. Newmont is the only gold producer listed
in the S&P 500 index and in 2007 became the first named to the Dow Jones
Sustainability World Index. The Company is an industry leader in value
creation, supported by its leading technical, environmental, social and
safety performance. Newmont was founded in 1921 and has been publicly
traded since 1925.
Cautionary Statement Regarding Forward-Looking Statements:
This news release contains “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, and are
intended to be covered by the safe harbor provided for under these
sections. Such forward-looking statements may include, without
limitation, statements as to the expectations regarding future refining
relationships, financial flexibility, balance sheet, debt repayments,
investments and return capital to shareholders. Where the Company
expresses 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, which could cause actual results
to differ materially from future results expressed, projected or implied
by those forward-looking statements. Such risks include, but are not
limited to, gold and other metals price volatility, currency
fluctuations, increased production costs and variances in ore grade or
recovery rates from those assumed in mining plans, political and
operational risks in the countries in which the Company operates and
governmental regulation and judicial outcomes. For a more detailed
discussion of such risks and other factors, see the Company's 2014
Annual Report on Form 10-K, filed on February 20, 2015 and the Company’s
Quarterly Report on Form 10-Q, filed on April 24, 2015, each of which is
on file with the Securities and Exchange Commission, as well as the
Company's other SEC filings. Many of these factors are beyond the
Company’s ability to control or predict. Given these uncertainties,
investors are cautioned not to place undue reliance on those
forward-looking statements. All subsequent written and oral
forward-looking statements attributable to the Company or to persons
acting on its behalf are expressly qualified in their entirety by the
cautionary statements. The Company disclaims any intention or obligation
to update publicly any forward-looking statement, whether as a result of
new information, future events or otherwise, except as may be required
under applicable securities laws.
View source version on businesswire.com: http://www.businesswire.com/news/home/20150726005068/en/
Copyright Business Wire 2015