Newmont has built safer and more efficient operations, a stronger portfolio, and a more resilient balance sheet over the last three years. This performance is reflected in a 52 percent increase in share price since the beginning of 2016, and upgrades that give Newmont the best credit rating in the gold sector.
Mining is a long-term business and a strong balance sheet provides the financial flexibility needed to thrive in all cycles. Newmont generated $2.7 billion in adjusted EBITDA and $756 million in free cash flow in 2015 – and more than $1.9 billion in non-core asset sales since 2013 – through rigorous cost, capital and portfolio optimization.
These financial results allow the Company to deliver its capital priorities, which are to:
- Repay debt – Newmont has lowered net debt by 33 percent since 2013 and recently announced a $500 million bond tender to further reduce debt ahead of schedule, and lower interest payments by more than $25 million per year; the Company is targeting a net debt to EBITDA ratio of 1.0 at $1,200 gold
- Fund profitable growth – Newmont has the strongest growth pipeline in the gold sector, and remains on track to generate positive free cash flow this year while funding the construction of new mines at Merian and Long Canyon, as well as expansions at Cripple Creek & Victor and Tanami; these projects hold the potential to add nearly one million ounces of gold production at competitive costs over the next two years
- Return cash to shareholders – Newmont paid $52 million in dividends in 2015 and its gold price linked dividend policy offers investors further exposure to gold prices, which have risen 20 percent so far in 2016; the strongest upward trend since 1980
Newmont has concrete plans in place to continue improving its performance and portfolio, and to translate strengthening gold fundamentals into long-term value for its shareholders. Please contact the Investor Relations team to learn more about the Company’s performance and prospects.