DENVER--(BUSINESS WIRE)--Newmont Mining Corporation (NYSE: NEM) (“Newmont” or “the Company”) has completed the sale of Newmont Waihi Gold Limited in New Zealand to OceanaGold Corporation (TSX/ASX/NZX: OGC) (“OceanaGold”), receiving cash proceeds of US$101 million. The sale agreement also includes a US$5 million contingent payment and a one percent Net Smelter Royalty on a recent discovery north of Waihi’s current operations.
“The sale of Waihi further strengthens Newmont’s balance sheet and improves the Company’s financial flexibility as we continue to sell select assets for cash at fair value,” said Randy Engel, Executive Vice President for Strategic Development.
Over the last two years Newmont has generated US$1.7 billion through fairly valued, non-core asset sales, allowing the Company to further pay down debt, invest in profitable production and return capital to shareholders. In addition, the Company lowered its all-in sustaining costs by 16 percent in the third quarter of 2015, compared to the prior year, and has generated free cash flow of US$941 million, year-to-date, despite lower metal prices.
Newmont has one of the strongest project pipelines in the gold sector, and remains on track to deliver profitable new production from Leeville in Nevada as the Turf Vent Shaft is completed in late 2015; from Cripple Creek & Victor’s expansion projects during 2016; from Merian in Suriname in late 2016; and from Long Canyon Phase 1 in Nevada beginning in 2017. The Company also is proceeding with the recently announced expansion of Tanami in Australia, which is expected to generate additional, profitable gold production in mid-2017.
Waihi is located approximately 150 kilometers southeast of Auckland in New Zealand. Gold was first discovered and mined in the area in 1878. The Martha open pit mine began operations in 1987 and was acquired by Newmont in 2002 during the merger with Normandy. Waihi produced approximately 132,000 ounces of gold in 2014.
Newmont is a leading gold and copper producer. The Company employs approximately 27,000 employees and contractors, with the majority working at managed operations in the United States, Australia, Ghana, Peru, Indonesia and Suriname. Newmont is the only gold producer listed in the S&P 500 index and in 2007 became the first named to the Dow Jones Sustainability World Index. 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 Regarding Forward-Looking Statements:
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, including, without limitation, statements regarding future financial performance, future balance sheet strength, future asset sales, future production, anticipated development and expansion of projects and operations and other statements that are not historical facts. While such forward-looking statements are expressed by Newmont as stated in this release in good faith and believed by Newmont to have a reasonable basis, they are subject to important risks and uncertainties. As a result, the results or events predicted in these forward-looking statements may differ materially from actual results or events. 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 OceanaGold or other third parties in respect of the transaction, 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.