OREANDA-NEWS. November 02, 2015. 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.
About Newmont
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.
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