DENVER--(BUSINESS WIRE)--Newmont Mining Corporation (NYSE: NEM) (“Newmont” or “the Company”) announced it has closed the sale of its equity stake in the Valcambi gold refinery in Switzerland to a subsidiary of Rajesh Exports Ltd (“REL”) for total net proceeds of US$119 million. Newmont will continue its existing refining relationships with Valcambi under the new ownership structure.
“This sale further strengthens Newmont’s balance sheet and enhances our focus on our core business,” said Randy Engel, Executive Vice President for Strategic Development. “Since mid-2013, we have executed $1.6 billion in non-core asset sales, allowing us to further pay down debt, invest in new, profitable production and return capital to shareholders.”
The Valcambi refinery began operations in 1961 in Balerna, Switzerland, and Newmont first acquired its equity interest in 2004 from Credit Suisse. Valcambi has grown to be one of the world’s largest gold and silver refineries, with a significant manufacturing business. REL, a leading gold jewelry manufacturer and one of the largest direct gold consumers in the world, has been a longstanding customer of Valcambi.
About Newmont
Newmont is a leading gold and copper producer. The Company employs approximately 28,000 employees and contractors, with the majority working at managed operations in the United States, Australia, Ghana, Peru, Suriname and Indonesia. 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.
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, and are intended to be covered by the safe harbor provided for under these sections. Such forward-looking statements may include, without limitation, statements as to the expectations regarding future refining relationships, financial flexibility, balance sheet, debt repayments, investments and return capital to shareholders. Where the Company expresses 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, forward-looking 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 those forward-looking statements. Such risks include, but are not limited to, gold and other metals price volatility, currency fluctuations, increased production costs and variances in ore grade or recovery rates from those assumed in mining plans, political and operational risks in the countries in which the Company operates and governmental regulation and judicial outcomes. For a more detailed discussion of such risks and other factors, see the Company's 2014 Annual Report on Form 10-K, filed on February 20, 2015 and the Company’s Quarterly Report on Form 10-Q, filed on April 24, 2015, each of which is on file with the Securities and Exchange Commission, as well as the Company's other SEC filings. Many of these factors are beyond the Company’s ability to control or predict. Given these uncertainties, investors are cautioned not to place undue reliance on those forward-looking statements. All subsequent written and oral forward-looking statements attributable to the Company or to persons acting on its behalf are expressly qualified in their entirety by the cautionary statements. The Company disclaims any intention or obligation to update publicly any forward-looking statement, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws.