Newmont Announces Early Redemption of its 5.30% Notes Due 2026

Rhea-AI Summary

Newmont (NYSE: NEM) and its subsidiary Newcrest Finance announced the early redemption of $927,754,000 in principal of their 5.30% Notes due 2026. The redemption will take place on February 7, 2025, and includes the payment of a make-whole amount plus accrued and unpaid interest up to the redemption date.

This action is part of Newmont's broader debt reduction strategy, with the company having retired approximately $1.4 billion of debt over the past 12 months. The initiative demonstrates Newmont's commitment to deleveraging and strengthening its balance sheet.

Positive

• Full retirement of $927.7M in 2026 Notes
• Total debt reduction of $1.4B over 12 months
• Strategic deleveraging strengthens balance sheet

Negative

• Additional costs from make-whole payment requirement

Insights

Financial Analyst

Newmont's decisive move to retire $927.7 million in 5.30% Notes ahead of schedule, coupled with $1.4 billion in total debt reduction over the past year, signals a robust deleveraging strategy that strengthens the company's financial foundation. This aggressive debt reduction demonstrates exceptional financial stewardship, particularly following the significant Newcrest acquisition.

The early redemption, despite triggering make-whole premiums, reflects strong cash flow generation and strategic capital allocation. By retiring these 5.30% Notes, Newmont will realize substantial interest expense savings, enhancing future free cash flow. This deleveraging initiative carries three key benefits:

• Improved credit metrics and potential positive impact on credit ratings
• Enhanced financial flexibility for future growth initiatives or shareholder returns
• Reduced exposure to interest rate volatility

The timing of this redemption is particularly strategic, occurring when gold prices remain supportive of strong operating cash flows. This positions Newmont with a more optimal capital structure, providing greater resilience against commodity price volatility while maintaining flexibility for strategic opportunities. The company's proactive approach to balance sheet management sets a strong foundation for sustainable growth and shareholder value creation.

Committed to Reducing Debt and Further Strengthening Newmont’s Financial Position

DENVER--(BUSINESS WIRE)-- Newmont Corporation (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”) today announced the redemption of $927,754,000 in principal, fully retiring the 5.30% Notes due 2026 (the “Notes”).

Including the early redemption of the 2026 Notes, Newmont will have retired approximately $1.4 billion of its debt over the last 12 months, demonstrating the Company’s commitment to deleveraging and strengthening its balance sheet.

The Notes will be redeemed on February 7, 2025 (the “Redemption Date”) at a redemption price equal to the applicable make-whole amount for the Notes, plus accrued and unpaid interest on the Notes to, but excluding, the Redemption Date, in accordance with the terms of the Notes. Interest on the Notes will cease to accrue on and after the Redemption Date.

About Newmont

Newmont is the world’s leading gold company and a producer of copper, zinc, lead, and silver. The Company’s world-class portfolio of assets, prospects and talent is anchored in favorable mining jurisdictions in Africa, Australia, Latin America & Caribbean, North America, and Papua New Guinea. 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. Newmont is an industry leader in value creation, supported by robust safety standards, superior execution, and technical expertise. Founded in 1921, the Company has been publicly traded since 1925.

At Newmont, our purpose is to create value and improve lives through sustainable and responsible mining. To learn more about Newmont’s sustainability strategy and initiatives, go to www.newmont.com.

Cautionary Statement Regarding Forward-Looking Statements

This news 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 these sections and other applicable laws. Where a forward-looking statement expresses or implies 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. Forward-looking statements often address our expected future business and financial performance and financial condition; and often contain words such as “anticipate,” “intend,” “plan,” “will,” “would,” “estimate,” “expect,” “believe,” “pending” or “potential.” Forward-looking statements in this news release may include, without limitation, statements relating to the expected redemption of the Notes, future debt balances, future cash flow generation, pending closing of asset divestitures and receipt of proceeds and future capital allocation priorities. Estimates or expectations of future events or results are based upon certain assumptions, which may prove to be incorrect. Such assumptions, include, but are not limited to Newmont’s operations remaining consistent with plan and current expectations, market conditions and other planning assumptions. For a more detailed discussion of such risks, see Newmont’s Annual Report on Form 10-K for the year ended December 31, 2023 filed with the SEC on February 29, 2024, as well as Newmont’s other SEC filings, under the heading “Risk Factors”, and other factors identified in Newmont’s reports filed with the SEC, available on the SEC website or www.newmont.com. Newmont 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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250127695677/en/

Investor Contact – Global

Neil Backhouse

investor.relations@newmont.com

Investor Contact – Asia Pacific

Natalie Worley

apac.investor.relations@newmont.com

Media Contact – Global

Shannon Lijek

globalcommunications@newmont.com

Source: Newmont

FAQ

How much debt is Newmont (NEM) retiring with the 2026 Notes redemption?

Newmont is retiring $927,754,000 in principal through the early redemption of its 5.30% Notes due 2026.

When will Newmont (NEM) redeem its 5.30% Notes due 2026?

Newmont will redeem the Notes on February 7, 2025.

How much total debt has Newmont (NEM) retired in the past 12 months?

Newmont has retired approximately $1.4 billion of debt over the last 12 months.

What will Newmont (NEM) pay for the early redemption of the 2026 Notes?

Newmont will pay a make-whole amount plus accrued and unpaid interest up to, but excluding, the February 7, 2025 redemption date.