Newmont Mining (NEM) Announces Completion of $1.3B PTNNT Stake Sale
- Top 10 News for 12/2: Crude Rips on OPEC Cut; Starbucks' Schultz Steps Down; Nonfarm Payrolls Flat in Nov.
- Unemployment Rate Drops to 4.6%
- Bond yields slip on U.S. jobs data, euro steady before Italy vote
- Alibaba (BABA) Founder Jack Ma Discuss Plans to Retire; 'I Don't Want to Die at the Office'
- Starbucks Coffee (SBUX) CEO Howard Schultz to Step Down, Appointed Executive Chairman; Kevin Johnson New CEO
Find out which companies are about to raise their dividend well before the news hits the Street with StreetInsider.com's Dividend Insider Elite. Sign-up for a FREE trial here.
Newmont Mining Corporation (NYSE: NEM) successfully completed the sale of its ownership stake in PT Newmont Nusa Tenggara (PTNNT), which operates the Batu Hijau copper and gold mine in Indonesia, to PT Amman Mineral Internasional (PTAMI). The asset’s name now changes to PT Amman Mineral Nusa Tenggara (PTAMNT).
Newmont received total consideration of $1.3 billion for its 48.5 percent economic interest in PTNNT. This amount is comprised of gross cash proceeds of $920 million and contingent payments of $403 million tied to higher copper prices and any future development of the Elang deposit. Nusa Tenggara Mining Corporation, majority owned by Sumitomo Corporation, also sold its 24.5 percent ownership stake to PTAMI. Newmont and PTAMI have worked cooperatively throughout the sales process and developed a productive relationship.
“Newmont has been a long-term partner with the government of Indonesia and we support the new owner as they take responsibility for the asset and its team,” said Gary Goldberg, President and Chief Executive Officer. “Selling our ownership stake in PTNNT streamlines our portfolio and allows us to focus on assets that best match our capabilities for creating value and managing risk. We will use sale proceeds to continue self-funding our highest margin projects, retiring debt and paying competitive dividends. With the sale completed, our long-term cost and production outlook remains stable, and approximately three quarters of our gold reserves are now based in the United States and Australia. We appreciate the support of the Batu Hijau team, PTAMI, local and national government leaders, our host communities and our partners in completing the sale, and will continue to work together to effect a smooth transition.”
Batu Hijau was classified as held for sale and reported as a discontinued operation in Newmont’s third quarter and prior period financial results. Newmont’s adjusted net income including attributable net income from Batu Hijau would have been $0.51 per share1. The Company reported GAAP net income attributable to Newmont stockholders from continuing operations of $0.32 per share; and adjusted net income of $0.38 per share1 in the third quarter.
Newmont has generated $2.8 billion in fairly valued asset sales, advanced five organic growth projects, and lowered net debt by 56 percent since 2013 with the completion of this sale. The Company’s balance sheet, free cash flow generation, and project pipeline remain among the strongest in the gold sector. Newmont recently completed its Merian project in Suriname on schedule and $150 million below budget and its Cripple Creek & Victor expansion, and is progressing a new mine at Long Canyon and expansions at Tanami and Carlin. Taken together, these projects are expected to add one million ounces of lower cost gold production over the next two years.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Sonoco (SON) Affirms FY16 Outlook; Guides FY17 EPS Below Views
- SoTHERLY Hotels (SOHO) Approves $10M Stock Buyback Plan
- Shire's (SHPG) Phase 3 Investigational Study of VONVENDI Meets Primary Endpoint in Controlling Bleeding in Adults with VWD
Create E-mail Alert Related CategoriesCorporate News, Management Comments, Spinoffs
Related EntitiesDividend, Earnings, Definitive Agreement
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!