DENVER--(BUSINESS WIRE)--Newmont Mining Corporation (NYSE: NEM) (“Newmont” or “the Company”) today announced it made a $100 million prepayment toward a five-year, $575 million unsecured amortizing term loan received in March. The term loan was used to repay $575 million of convertible debt that matured in July of this year. Proceeds recently received as a result of the government of Suriname exercising its option to participate in a fully-funded, 25 percent equity ownership stake in the Merian Gold Project were included in the $100 million prepayment.
“We continue to improve our financial flexibility and strengthen our balance sheet despite a lower price environment,” said Laurie Brlas, Executive Vice President and Chief Financial Officer. “We have generated $1.7 billion in cost and productivity improvements and $1.4 billion in the sale of non-core assets since 2013, giving us the means to pay down debt and invest in profitable growth. Taken together, these efforts contribute to increasing shareholder value and maintaining our investment grade rating.”
Newmont has approximately $5 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.
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 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, and future balance sheet and financial strength. 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 2013 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.