NEM Newmont Corporation

Newmont Completes Sale of Red Lake and Realizes Cash Proceeds of $375 million

(NYSE: NEM, TSX: NGT) (Newmont or the Company) today announced it successfully completed the sale of its Red Lake complex in Ontario, Canada to Evolution Mining Limited (ASX: EVN) (Evolution) and received cash proceeds of $375 million with future contingent payments of up to an additional $100 million tied to new resource discoveries.

“We are pleased to complete the sale of Red Lake to a highly respected and responsible operator in Evolution. The transaction provides us ongoing exposure to future exploration upside, whilst we remain focused on our diverse global portfolio of 12 managed operations and two joint ventures, which includes eight world-class assets,” said Tom Palmer, President and Chief Executive Officer.

Under terms of the $100 million contingent payment, Evolution will pay Newmont $20 million for each one million ounces of new gold resources added to the existing Red Lake resource base over a fifteen year period. The contingent payment is applicable to the first five million ounces of new resources.

“Combined with the sale of our interests in Continental and KCGM, we have generated more than $1.4 billion in total cash proceeds, meeting our divestiture target of $1.0 to $1.5 billion in less than a year. These asset sales will support the continuation of our capital allocation priorities, which include strengthening our investment grade balance sheet, investing in our highest returning projects, and returning excess cash to our shareholders,” Palmer concluded.

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 proficiency. Newmont was founded in 1921 and has been publicly traded since 1925.

Cautionary Statement

This 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, which are intended to be covered by the safe harbors provided for under such sections. Forward-looking statements may be accompanied by terminology such as “will,” “expect,” “intend,” or comparable terminology. Forward-looking statements used herein may include, without limitation, estimates and expectations regarding the receipt of future contingent consideration, future exploration and declaration of new resources, future success and performance of Red Lake, future continuation of capital allocation priorities, future investment grade balance sheet strength, future investment in projects, and future returns to shareholders. Where the Company expresses 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.” For example, the timing and amount of contingent payment will remain subject to risks and uncertainties, including whether new gold resources are added to the existing Red Lake resource base during the covered period. As such, no guarantees can be made with respect to future performance or such payments. For a 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”, available on the SEC website or . 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.

EN
31/03/2020

Underlying

To request access to management, click here to engage with our
partner Phoenix-IR's CorporateAccessNetwork.com

Reports on Newmont Corporation

 PRESS RELEASE

Newmont Announces Pricing of Notes to Repay Outstanding Borrowings Und...

DENVER--(BUSINESS WIRE)-- (NYSE: NEM, TSX: NGT, ASX: NEM, PNGX: NEM) (“Newmont” or the “Company”) and Newcrest Finance Pty Limited, a wholly owned subsidiary of Newmont (“Newcrest Finance” and, together with Newmont, the “Issuers”) announced today that they have priced a private offering (the “Offering”) of $1 billion aggregate principal amount of 5.300% notes due 2026 (the “2026 Notes”) and $1 billion aggregate principal amount of 5.350% notes due 2034 (the “2034 Notes” and, together with the 2026 Notes, the “Notes”). The Notes will be guaranteed on an unsecured senior basis by Newmont USA L...

Moody's rates Newmont's new notes Baa1

Moody's Investors Service (Moody's) assigned a Baa1 rating to Newmont Corporation's (Newmont) new backed $1 billion senior unsecured notes due 2026 and its new backed $1 billion senior unsecured notes due 2034. Proceeds from the notes issuance will be used to repay the borrowings under the recently ...

 PRESS RELEASE

Newmont Announces Offering of Notes to Repay Outstanding Borrowings Un...

DENVER--(BUSINESS WIRE)-- (NYSE: NEM, TSX: NGT, ASX: NEM, PNGX: NEM) (“Newmont” or the “Company”) and Newcrest Finance Pty Limited, a wholly owned subsidiary of Newmont (“Newcrest Finance” and, together with Newmont, the “Issuers”) announced today that they have commenced a private offering (the “Offering”) of their notes due 2026 and notes due 2034 (together, the “Notes”). The Notes will be guaranteed on an unsecured senior basis by Newmont USA Limited, a wholly owned subsidiary of Newmont. The Issuers intend to use a portion of the net proceeds from the Offering to repay all outstanding b...

 PRESS RELEASE

Newmont Completes COO Transition

DENVER--(BUSINESS WIRE)-- (NYSE: NEM, TSX: NGT, ASX: NEM, PNGX: NEM) announces today the completion of its Chief Operating Officer (COO) transition following a period. Beginning next week, will transition all of his remaining responsibilities to Newmont’s new COO, . He will then officially step down from the Newmont Executive Leadership Team, effective May 2, 2024. This press release features multimedia. View the full release here: Rob Atkinson (Photo: Business Wire) “Rob Atkinson has played a pivotal leadership role in Newmont in recent years. Through his visible and engaging leadership, ...

 PRESS RELEASE

Newmont Announces 2023 Mineral Reserves for Integrated Company of 136 ...

DENVER--(BUSINESS WIRE)-- (NYSE: NEM, TSX: NGT, ASX: NEM, PNGX: NEM) reported higher gold Mineral Reserves ("reserves") of 135.9 million attributable ounces for 2023 compared to the Company’s 96.1 million ounces at the end of 2022. Newmont has significant upside to other metals, including more than 30 billion pounds of copper reserves and nearly 600 million ounces of silver reserves. This press release features multimedia. View the full release here: Percentage of Gold Reserves by Jurisdiction (Graphic: Business Wire) "Newmont has strengthened its position as the responsible gold leader with...

ResearchPool Subscriptions

Get the most out of your insights

Get in touch