Newmont Pays Remaining Balance on Term Loan Maturing in 2019
August 18 2016 - 4:30PM
Business Wire
Newmont Mining Corporation (NYSE: NEM) (Newmont or the Company)
today announced it paid the remaining $275 million balance under
the Company’s Term Loan due in 2019 (the Term Loan). Early
repayment of the Term Loan results in a lower overall corporate
debt position and reduced cash interest expense. Year-to-date,
Newmont has reduced its consolidated debt by $915 million.
“Repayment of the Term Loan marks another milestone in our
strategy to improve the underlying business, strengthen the
portfolio and create shareholder value,” said Laurie Brlas,
Executive Vice President and Chief Financial Officer. “We continue
enhancing our financial flexibility and strengthening our balance
sheet while progressing two new mines and three expansion projects
– all on time and at or below budget. Since 2013, we have generated
$2.8 billion in fairly valued asset sales, including the cash
proceeds expected from the agreement we announced in June to sell
PTNNT. We also continue to improve our operating margins, giving us
the means to pay down debt and invest in profitable growth.”
Newmont has strong liquidity with approximately $6 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
Newmont is a leading gold and copper producer. The Company’s
operations are primarily in the United States, Australia, Ghana,
Peru, Indonesia and Suriname. Newmont is the only gold producer
listed in the S&P 500 Index and was named the mining industry
leader by the Dow Jones Sustainability World Index in 2015. 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
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, future balance sheet and financial
strength, and completion of the pending sale of the Company’s
interest in PTNNT, including, without limitation, receipt of
expected proceeds. Investors are cautioned the sale remains
contingent on the receipt of regulatory approvals, buyer
shareholder approval, and satisfaction of other conditions
precedent, including, without limitation, government approval of
the PTNNT share transfer, maintenance of valid export license at
closing, the concurrent closing of the PTMDB sale of its 24 percent
stake to the buyer, resolution of certain tax matters, and no
occurrence of material adverse events that would substantially
impact the future value of Batu Hijau. Potential additional risks
include other political, regulatory or legal challenges and
community and labor issues. 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 2015 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.
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version on businesswire.com: http://www.businesswire.com/news/home/20160818006220/en/
Newmont Mining CorporationInvestor
ContactMeredith Bandy,
303-837-5143meredith.bandy@newmont.comorMedia
ContactOmar Jabara, 303-837-5114omar.jabara@newmont.com
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