Newmont Corporation (NYSE: NEM, TSX: NGT) (Newmont or the
Company) announced today that it has entered into a definitive
agreement with Maverix Metals Inc. (NYSE American & TSX: MMX)
(Maverix) to sell a portfolio of eleven royalties (the
Transaction). Newmont will receive total consideration of
approximately $90 million from Maverix, consisting of $15 million
in cash, 12 million Maverix common shares, and up to $15 million in
contingent cash payments payable upon completion of certain
milestones.
The royalties provide exposure to five flagship gold assets
owned and operated by growth-oriented mining companies. The
portfolio includes royalties on Camino Rojo and Ana Paula in
Mexico, Cerro Blanco in Guatemala, and Mother Lode and Imperial in
the United States.
The Transaction builds on Newmont’s existing ownership interest
in Maverix and provides the Company additional participation in the
future upside of a growing royalty and streaming business.
Maverix’s diversified portfolio includes over 100 royalties and
streams across 18 countries, with assets predominately located in
Australia the Americas and Mexico. Closing of the Transaction is
expected to occur in the fourth quarter of 2020 upon completion of
customary closing conditions, and once completed, Newmont’s
ownership interest in Maverix will increase from 26 percent to
approximately 32 percent.
“This transaction further strengthens our strategic partnership
with Maverix and generates additional value for our respective
shareholders,” said Tom Palmer, President and Chief Executive
Officer. “We remain focused on continuing to optimize our portfolio
and look forward to realizing further value through our position in
Maverix.”
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 expertise. Newmont was founded in 1921 and
has been publicly traded since 1925.
Cautionary Statement Regarding Forward-Looking
Statements:
This press 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. Where a
forward-looking statement 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, 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. Forward-looking statements often
address our expected future business and financial performance and
financial condition; and often contain words such as “anticipate,”
“intend,” “plan,” “will,” “would,” “estimate,” “expect,” “believe,”
“target,” “indicative,” “preliminary,” or “potential.”
Forward-looking statements in this presentation may include,
without limitation, (i) estimates of future production and sales,
including production outlook, average future production, upside
potential and indicative production profiles; (ii) estimates of
future costs applicable to sales and all-in sustaining costs; (iii)
estimates of future consolidated and attributable capital
expenditures, including development and sustaining capital; (iv)
estimates of future cost reductions, full potential savings, value
creation, improvements, synergies and efficiencies; (v)
expectations regarding the development, growth and exploration
potential of the Company’s operations, projects and investments,
including, without limitation, returns, IRR, schedule, decision
dates, mine life, commercial start, first production, average
production, average costs, impacts of improvement or expansion
projects and upside potential; (vi) expectations regarding future
investments or divestitures; (vii) expectations regarding free cash
flow, and returns to stockholders; (viii) expectations regarding
future mineralization, including, without limitation, expectations
regarding reserves and recoveries; (ix) estimates of future closure
costs and liabilities; (x) expectations regarding the timing and/or
likelihood of future borrowing, future debt repayment, financial
flexibility and cash flow; (xi) expectations regarding the future
exploration, development of the project pipeline, (xii) integration
work, asset development and future results related to the Nevada
joint venture; (xiii) expectations regarding expense outlook,
including G&A, interest expense, depreciation and amortization
and tax rate; and (xiv) expectations regarding the impact of the
COVID-19 pandemic on the financial and operating results and the
overall business, including with respect to the Company’s guidance.
Estimates or expectations of future events or results are based
upon certain assumptions, which may prove to be incorrect. Such
assumptions, include, but are not limited to: (i) there being no
significant change to current geotechnical, metallurgical,
hydrological and other physical conditions; (ii) permitting,
development, operations and expansion of operations and projects
being consistent with current expectations and mine plans,
including, without limitation, receipt of export approvals; (iii)
political developments in any jurisdiction in which the Company
operates being consistent with its current expectations; (iv)
certain exchange rate assumptions being approximately consistent
with current levels; (v) certain price assumptions for gold,
copper, silver, zinc, lead and oil; (vi) prices for key supplies
being approximately consistent with current levels; (vii) the
accuracy of current mineral reserve and mineralized material
estimates; and (viii) other planning assumptions. Uncertainties
relating to the impacts of COVID-19, include, without limitation,
general macroeconomic uncertainty and changing market conditions,
changing restrictions on the mining industry in the jurisdictions
in which we operate, the ability to operate following changing
governmental restrictions on travel and operations (including,
without limitation, the duration of restrictions, including access
to sites, ability to transport and ship doré, access to processing
and refinery facilities, impacts to international trade, impacts to
supply chain, including price, availability of goods, ability to
receive supplies and fuel, impacts to productivity and operations
in connection with decisions intended to protect the health and
safety of the workforce, their families and neighboring
communities), and the impact of additional waves of the pandemic or
increases of incidents of COVID-19 in the areas and countries in
which we operate. Investors are reminded that other than the first
and second quarter 2020 dividends previously declared, dividends
for the remainder of 2020 have not yet been approved or declared by
the Board of Directors. Management’s expectations with respect to
future dividends are “forward-looking statements” and non-binding.
The declaration and payment of future dividends remain at the
discretion of the Board of Directors and will be determined based
on Newmont’s financial results, balance sheet strength, cash and
liquidity requirements, future prospects, gold and commodity
prices, and other factors deemed relevant by the Board. The
duration, scope and impact of COVID-19 presents additional
uncertainties with respect to future dividends and no assurance is
being provided that the Company will pay future dividends at the
current payment level. For a more detailed discussion of risks and
other factors that might impact future looking statements, see the
Company’s Annual Report on Form 10-K for the year ended December
31, 2019 filed with the U.S. Securities and Exchange Commission
(the “SEC”), under the heading “Risk Factors”, as well as the
COVID-19 related “Risk Factor” in the Quarterly Report on Form 10-Q
for the year ended March 31, 2020, filed with the U.S. Securities
and Exchange Commission on or about May 5, 2020 available on the
SEC website or www.newmont.com. 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 presentation, 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.
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version on businesswire.com: https://www.businesswire.com/news/home/20200921005222/en/
Media Contact Eric Colby
303.837.5724 eric.colby@newmont.com
Investor Contact Jessica Largent
303.837.5484 jessica.largent@newmont.com
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