Newmont Announces Pricing of 30-Year $600 Million Public Note Offering
Denver, March 17, 2005 – Newmont Mining Corporation (NYSE: NEM) today announced the pricing of its offering of $600 million of 30-year 5.875% Notes due 2035. Moody's Investors Service assigned a Baa1 rating to the Notes while Standard & Poor's Ratings Services raised its corporate credit and unsecured debt ratings on Newmont Mining Corporation, including the Notes, to BBB+.
The proceeds will be used to fund capital investments, including a potential 200 megawatt power plant in Nevada, and for general corporate purposes. Pending receipt of permits and approvals, construction of the Nevada power plant is intended to begin in the second half of this year and could reduce total cash costs in Nevada by up to $20 per ounce, starting in mid-2008.
Wayne Murdy, Chairman and Chief Executive Officer of Newmont, said, “We’re pleased with the investor demand for this 30-year bond issue, which provides Newmont with greater financial flexibility and liquidity in a period of renewed capital investment.”
Citigroup Global Markets Inc. and J.P. Morgan Securities Inc. were the joint bookrunning managers for the offering and UBS Securities LLC was the lead manager for the offering.
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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, that are intended to be covered by the safe harbor created by such sections. Such forward-looking statements include, without limitation, statements regarding the timing of future permitting, approval or construction and estimates of potential cost savings. Where the company 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, forwardlooking 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 such forward-looking statements. Such risks include, but are not limited to, gold, other metals and commodities price volatility. For a more detailed discussion of such risks and other factors, see the company’s 2004 Annual Report on Form 10-K, which is on file with the Securities and Exchange Commission, as well as the company’s other SEC filings. The company does not undertake any obligation to release publicly revisions to any “forward-looking statement,” 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.