Newmont to Repurchase up to $1 Billion of Stock
December 02 2019 - 9:09AM
Business Wire
Newmont (NYSE: NEM, TSX: NGT) (Newmont or the Company) today
announced its Board of Directors has unanimously approved the
authorization of a stock repurchase program for up to $1 billion of
common equity to be completed in the next 12 months.1 The program
will be executed at the Company’s discretion, utilizing open market
repurchases to occur from time-to-time throughout the authorization
period.
The Company’s stock repurchase program aligns with its
disciplined capital allocation priorities, which include returning
cash to shareholders, investing in profitable growth and
maintaining an investment grade credit profile. All shares
repurchased will be retired, resulting in immediate accretion to
shareholders by reducing total shares outstanding and improving per
share financial performance.
Newmont has a strong track record of delivering continuous and
sustainable improvements to its operations through superior
operational execution and its Full Potential program, which has
generated more than $2.5 billion of total value since 2013.2
Newmont has completed its Goldcorp integration process and is now
positioned to realize over $500 million per annum in total cash
flow improvements by 2021 from G&A and exploration synergies,
supply chain efficiencies, and Full Potential cost and productivity
improvements.
“Our share repurchase program reflects the confidence we have in
our people, our operations and our balance sheet to deliver
substantial value upside and returns for our shareholders,” said
Tom Palmer, President and Chief Executive Officer. “Working closely
with our Board of Directors, we determined that current market
conditions, combined with $635 million of expected cash proceeds
from the sales of Red Lake and our equity investment in
Continental, create a compelling opportunity to initiate our $1
billion share buyback program over the next 12 months whilst we
continue to return cash to shareholders through sustainable
dividends.”
About Newmont
Newmont is the world’s leading gold company and a producer of
copper, silver, zinc and lead. The Company’s world-class portfolio
of assets, prospects and talent is anchored in favorable mining
jurisdictions in North America, South America, Australia and
Africa. Newmont is the only gold producer listed in the S&P 500
Index and is widely recognized for its principled environmental,
social and governance practices. The Company is an industry leader
in value creation, supported by robust safety standards, superior
execution and technical proficiency. Newmont was founded in 1921
and has been publicly traded since 1925.
Cautionary Statement Regarding Forward-Looking
Statements
This 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,
which are intended to be covered by the safe harbor created by such
sections and other applicable laws. Such forward-looking statements
may include, without limitation, statements or expectations
regarding future share repurchases, accretion to shareholders
reduction of shares outstanding, improvements to financial
performance metrics, balance sheet strength, integration
effectiveness, value creation, cash flow improvements, G&A and
exploration synergies, supply chain efficiencies, and Full
Potential cost and productivity improvements, expected proceeds
from the Red Lake sale, and shareholder value and returns. Such
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 the “forward-looking
statements.” Estimates or expectations of future events are also
based upon certain assumptions, which may prove to be incorrect.
The extent to which the Company repurchases its shares, and the
timing of such repurchases, will depend upon a variety of factors,
including trading volume, market conditions, legal requirements,
business conditions and other factors. As such, no guarantees can
be made with respect to the impact of the authorized program.
Additionally, receipt of proceeds from Red Lake assumes closing of
the transaction, which remains pending and subject to satisfaction
of certain conditions precedent. For a more detailed discussion of
risks and other factors that might impact future looking statements
or the Company’s future performance, see the Company’s Quarterly
Report on Form 10-Q for the quarter ended June 30, 2019 under the
heading “Risk Factors”, filed with the U.S. Securities and Exchange
Commission (the “SEC”) and available on the SEC website or
www.newmontgoldcorp.com, as well as the Company’s other SEC
filings, including the most recent Quarterly Report on Form 10-Q
for the quarter ended September 30, 2019. The Company does not
undertake any obligation to release publicly revisions to any
“forward-looking statement,” including, without limitation,
outlook, to reflect events or circumstances after the date of this
news release, or to reflect the occurrence of unanticipated events,
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.
________________________________
1 In connection with this Board approval, the Company’s
previously authorized and disclosed stock repurchase program for
2019 of up to $100 million of common stock was terminated and
replaced by the above mentioned stock repurchase program, which
expires upon December 31, 2020. Investors are reminded that the
extent to which the Company repurchases its shares, and the timing
of such repurchases, will depend upon a variety of factors. See
cautionary statement above. The repurchase program may be
discontinued at any time, and the program does not obligate the
Company to acquire any specific number of shares of its common
stock.
2 Full Potential value creation is considered an operating
measure provided for illustrative purposes, and should not be
considered GAAP or non-GAAP financial measures. Full Potential
amounts are estimates utilized by management that represent
estimated cumulative incremental value realized as a result of Full
Potential projects implemented and are based upon both cost savings
and efficiencies that have been monetized for purposes of the
estimation. Because Full Potential improvement estimates reflect
differences between certain actual costs incurred and management
estimates of costs that would have been incurred in the absence of
the Full Potential program, such estimates are necessarily
imprecise and are based on numerous judgments and assumptions.
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version on businesswire.com: https://www.businesswire.com/news/home/20191202005566/en/
Media Contact Omar Jabara
303.837.5114 omar.jabara@newmont.com
Investor Contact Jessica Largent
303.837.5484 jessica.largent@newmont.com
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