Business
Newmont Assigned Stable A- Rating from Fitch
Rating Reflects Strong and Flexible Financial Position to Create Lasting Value for Shareholders DENVER / Oct 03, 2023 / Business Wire / Newmont Corporation
About this update from Newmont Corporation
[{"type":"text","content":" Rating Reflects Strong and Flexible Financial Position to Create Lasting Value for Shareholders DENVER / Oct 03, 2023 / Business Wire / Newmont Corporation (NYSE: NEM, TSX: NGT) today announced Fitch has assigned Newmont a first-time, long-term issuer default rating of A- with a stable outlook. Fitch also assigned a rating of A- to Newmont’s senior unsecured debt. These ratings reflect Newmont’s industry leadership, global scale and diversified operating position in low-risk jurisdictions to generate strong liquidity and modest leverage. “The ratings from Fitch recognize Newmont’s ongoing financial strength and flexibility, which is supported by our proven strategy and industry leadership position,” said Tom Palmer, Newmont’s President and CEO. “Our disciplined and balanced approach to capital allocation remains unchanged, and we are committed to maintaining a strong financial position and an investment-grade balance sheet. Combined with robust annual free cash flows, our balance sheet enables profitable reinvestment into our business while generating leading returns to shareholders across price cycles.” Newmont’s financial position and industry leadership is expected to be further strengthened after completion of the pending acquisition of Newcrest, previously announced on May 14. The combination would create a world-class portfolio of assets with the highest concentration of Tier 1 operations, primarily in favorable, low-risk mining jurisdictions. Upon closing of the transaction, the combined Company would deliver a multi-decade production profile from 10 large, long-life, low cost Tier 1 operations, and increased annual copper production primarily from Australia and Canada. The combined business is anticipated to generate annual pre-tax synergies of $500 million, expected to be achieved within the first 24 months, while also targeting at least $2 billion in cash improvements through portfolio optimization in the first two years after closing.1 Newmont and Newcrest anticipate the transaction closing in the fourth quarter of this year, subject to the satisfaction of customary closing conditions and regulatory approvals. 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 jur...