Newmont Announces $1.0 Billion Share Repurchase Program

Rhea-AI Summary

Newmont Corporation (NYSE: NEM, TSX: NGT) has authorized a share repurchase program for up to $1.0 billion of common equity, with execution planned over the next 18 months. This initiative complements Newmont’s strong dividend framework, aiming to balance reinvestment and returns to shareholders. The program builds on a previous $1.0 billion buyback executed in 2020, which effectively retired 22 million shares at an average price of $45. Newmont's commitment has returned over $2.7 billion to shareholders since 2019 through dividends and buybacks.

Positive

• Authorization of a share repurchase program up to $1.0 billion, enhancing shareholder value.
• Continuation of an industry-leading dividend framework, supporting investor confidence.
• Past buyback successfully retired 22 million shares, indicating efficient capital management.

Negative

• Share repurchase timing and extent are subject to market conditions, which may limit effectiveness.
• Future dividend payments are not guaranteed and are subject to Board discretion and market fluctuations.

Newmont Corporation (NYSE: NEM, TSX: NGT) (Newmont or the Company) today announced its Board of Directors has approved a share repurchase program for up to $1.0 billion of common equity, to be completed over the next 18 months. The program will be executed at the Company’s discretion, utilizing open market repurchases to occur from time to time throughout the authorization period, and is in addition to Newmont’s industry-leading dividend framework.

Newmont’s capital allocation philosophy balances steady reinvestment in the business, maintaining financial strength and flexibility, and providing leading returns to shareholders. Recently, the Company announced an industry-leading dividend framework, which includes a sustainable base dividend and additional returns at higher gold prices. The share repurchase program builds on the $1.0 billion 2020 program, which retired 22 million shares at an average price of $45 per share.

“Our share repurchase program demonstrates the confidence we have in our world-class portfolio and disciplined operating model to provide industry-leading returns to our shareholders,” said Tom Palmer, President and Chief Executive Officer. “The share repurchase program is among a number of tools we have the flexibility to deploy to provide the most superior set of returns to shareholders over time.”

Newmont has the strongest and most sustainable portfolio of operations, projects and exploration prospects in the gold sector. Newmont’s world-class portfolio has returned more than $2.7 billion to shareholders through dividends and share buybacks since January 2019.

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

Cautionary Statement:

This release contains “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 harbor created by such sections and other applicable laws. Forward-looking statements often contain words such as “expect,” “intend,” “plan,” and “will.” Such forward-looking statements may include, without limitation, statements or expectations regarding future return to shareholders (including share repurchases and dividend declarations, payment levels and sustainability), performance and business results, project profitability and development, cash flow and financial flexibility. Investors are also cautioned that the extent to which the Company repurchases its shares, and the timing of such repurchases, will depend upon a variety of factors, including trading volume, market conditions, legal requirements, business conditions and other factors. The repurchase program may be discontinued at any time, and the program does not obligate the Company to acquire any specific number of shares of its common stock or to repurchase the full $1.0 billion amount during the authorization period. Consequently, the Board of Directors may revise or terminate such share repurchase authorization in the future. Investors are also cautioned that the Company’s dividend framework is non-binding. Future dividends are assessed on a quarterly basis by the Board of Directors and will be determined based on Newmont’s financial results, balance sheet strength, cash and liquidity requirements, future prospects, gold price fluctuations and other factors deemed relevant by the Board. Dividends for 2021 have not yet been approved or declared by the Board of Directors. Management’s expectations with respect to future dividends are “forward-looking statements” and non-binding. The Board of Directors reserves all powers related to the declaration and payment of dividends. Consequently, in determining the dividend to be declared and paid on the common stock of the Company, the Board of Directors may revise or terminate such dividend plans at any time without prior notice. Investors are reminded that forward-looking statements are subject to various risks and uncertainties, which could cause the actual results and expectations to differ materially from the anticipated results or expectations expressed, including, without limitation, risks in connection with the operations, cash flow and results of the Company relating to the uncertain duration, scope and effect of the current COVID-19 and effectiveness of the COVID-19 vaccines. In light of the changing environment and uncertainties, no guarantees can be provided that Newmont’s proactive efforts to minimize impacts of COVID-19 on its operations will be effective in eliminating risks. Similarly, no guarantees can be made that the Company will be able to maintain the same dividend level in the future. Investors should not place undue reliance on forward-looking statements.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210114005322/en/

FAQ

What is the purpose of Newmont's $1.0 billion share repurchase program?

The share repurchase program aims to enhance shareholder value and demonstrate confidence in the company's portfolio.

How long will Newmont's share repurchase program be active?

The program is set to be executed over the next 18 months.

What impact can Newmont's share repurchase program have on stock price?

The repurchase can potentially increase stock price by reducing the number of shares outstanding, thus enhancing earnings per share.

How does Newmont's previous share buyback compare to the new program?

The new $1.0 billion program builds on a previous buyback that retired 22 million shares at an average price of $45.