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Newmont earns best credit rating in gold sector on balance sheet strength

Newmont has built safer and more efficient operations, a stronger portfolio, and a more resilient balance sheet over the last three years. This performance is reflected in a 52 percent increase in share price since the beginning of 2016, and upgrades that give Newmont the best credit rating in the gold sector.

Mining is a long-term business and a strong balance sheet provides the financial flexibility needed to thrive in all cycles. Newmont generated $2.7 billion in adjusted EBITDA and $756 million in free cash flow in 2015 – and more than $1.9 billion in non-core asset sales since 2013 – through rigorous cost, capital and portfolio optimization.

These financial results allow the Company to deliver its capital priorities, which are to:

  • Repay debt – Newmont has lowered net debt by 33 percent since 2013 and recently announced a $500 million bond tender to further reduce debt ahead of schedule, and lower interest payments by more than $25 million per year; the Company is targeting a net debt to EBITDA ratio of 1.0 at $1,200 gold
  • Fund profitable growth – Newmont has the strongest growth pipeline in the gold sector, and remains on track to generate positive free cash flow this year while funding the construction of new mines at Merian and Long Canyon, as well as expansions at Cripple Creek & Victor and Tanami; these projects hold the potential to add nearly one million ounces of gold production at competitive costs over the next two years
  • Return cash to shareholders – Newmont paid $52 million in dividends in 2015 and its gold price linked dividend policy offers investors further exposure to gold prices, which have risen 20 percent so far in 2016; the strongest upward trend since 1980

Newmont has concrete plans in place to continue improving its performance and portfolio, and to translate strengthening gold fundamentals into long-term value for its shareholders. Please contact the Investor Relations team to learn more about the Company’s performance and prospects.

Cautionary Statement: This blog 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 plans for 2016, future financial results, including production, future debt reductions, future interest payments, future net debt to EBITDA ratios, future return of capital to shareholders, future value creation, 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 Form 10-K), 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 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.
Non-GAAP Financial Measures: Adjusted EBITDA, Free Cash Flow and All-In Sustaining Costs are non-GAAP financial measures. For a reconciliation of these metrics to the nearest GAAP metric, please see the Company’s Form 10-K beginning on page 82 under the heading “Non-GAAP Financial Measures”. The Form 10-K is also available at www.sec.gov and on the Company’s website at www.newmont.com. The same reconciliations are also available beginning on page 11 of the Fourth Quarter and Year-End Results News Releases linked to in the blog above.
Tags : Corporate, Performance

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