Newmont Completes Sale of Stake in Penmont Joint Venture in Mexico
DENVER--(BUSINESS WIRE)-- Newmont Mining Corporation (NYSE: NEM) (“Newmont” or “the Company”) today announced it completed the sale of its 44 percent stake in the Penmont joint venture (“Penmont”) pursuant to the announcement made by the Company on September 12, 2014 for US$450 million in cash proceeds. In addition to Newmont’s equity interest, Fresnillo plc (“Fresnillo”) acquired all assets and liabilities relating to Penmont.
“We are pleased to have completed the sale of our stake in Penmont as part of our ongoing effort to increase shareholder value and further strengthen Newmont's financial flexibility,” said Randy Engel, Newmont’s Executive Vice President for Strategic Development. “With the closing of this sale, Newmont has generated US$1.3 billion from divesting non-core assets at fair value, better positioning the Company to fund development of the next generation of profitable operations in our optimized project pipeline.”
Penmont produced approximately 183,000 attributable ounces of gold in 2013, and at December 31, 2013 Newmont reported 2.2 million attributable ounces of gold reserves. At December 31, 2013, Newmont recognized net book value of the Penmont joint venture totaling approximately $365 million.
Founded in 1921 and publicly traded since 1925, Newmont is a leading producer of gold and copper. Headquartered in Colorado, the Company has approximately 29,000 employees and contractors, with the majority working at managed operations in the United States, Australia, New Zealand, Peru, Indonesia and Ghana. Newmont is the only gold company listed in the S&P 500 index and in 2007 became the first gold company selected to be part of the Dow Jones Sustainability World Index. Newmont is an industry leader in value creation, supported by its leading technical, environmental, and health and safety performance.
This release contains “forward-looking statements” within the meaning of applicable securities laws that are intended to be covered by the safe harbors created by those laws. Such forward-looking statements may include, without limitation, statements regarding future financial flexibility, shareholder value and development of the project pipeline, and other statements that are not historical facts. While such forward-looking statements are expressed in good faith and believed by Newmont to have a reasonable basis, they are subject to risks and uncertainties (as disclosed in Newmont’s public filings), which could cause actual results to differ materially from future results expressed, projected or implied by the forward-looking statements. These forward-looking statements are not guarantees of future performance. Newmont does not undertake any obligation to release publicly revisions to any forward-looking statement or to comment on expectations of, or statements made by Fresnillo or other third parties, 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.
Source: Newmont Mining Corporation
Newmont Mining Corporation
Omar Jabara, 303-837-5114
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