DENVER--(BUSINESS WIRE)--
Newmont Mining Corporation (NYSE: NEM) (Newmont or the Company) today
announced it retired $575 million of principal under its 1.625%
convertible senior notes due July 15, 2017. Since 2013, Newmont has
streamlined its balance sheet and reduced its gross debt by over 30% and
its net debt by nearly 70%.
“The full repayment of our Convertible Notes continues the deleveraging
and simplification of our balance sheet we began in 2013,” said Nancy
Buese, Executive Vice President and Chief Financial Officer. “This $575
million reduction of debt further affords us the financial flexibility
to fund our highest margin projects and exploration opportunities while
keeping our commitment to return cash to shareholders. Since 2013, we
have reduced our gross debt by approximately $2.1 billion while
self-funding nine growth projects and returning $260 million to our
shareholders in dividend payments.”
In total, the Company has approximately $5.5 billion dollars in cash and
revolver capacity and will continue to evaluate and optimize the best
use of free cash flow including investing in projects to improve margins
and reserve life, returning capital to shareholders, and repaying debt.
The next tranche of debt due is $626 million of 5.125% senior notes due
on October 1, 2019.
About Newmont
Newmont is a leading gold and copper producer. The Company’s operations
are primarily in the United States, Australia, Ghana, Peru, and
Suriname. Newmont is the only gold mining company in the S&P 500 Index
and was named the mining industry leader by the Dow Jones Sustainability
World Index in 2015 and 2016. 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 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, estimates and expectations of future financial flexibility,
future use of free cash flow, including future project investments,
return to shareholders and debt repayment, and other statements relating
to future performance. Where the Company 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 or implied by the “forward-looking
statements.” Risks relating to forward looking statements in regard to
the Company’s business and future performance may include, but are not
limited to, gold price volatility, currency fluctuations, increased
production costs, variances in ore grade or recovery rates from those
assumed in mining plans and other operational risks, geotechnical,
metallurgical and hydrological risks, political and community relations
risk, and changes in governmental regulation and requirements. For a
discussion of such risks relating to our business and other factors, see
the Company’s Form 10-K, filed on or about February 21, 2017, with the
Securities and Exchange Commission (SEC) under the headings “Risk
Factors” and “Forward-Looking Statements”, and other SEC filings. 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.
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Source: Newmont Mining Corporation