Umicore launches sale and subsequent lease in of permanent gold inventories unlocking significant value

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[{"type":"image","alt":"Umicore","displaySize":"","headline":null,"caption":"Umicore","className":"","disableSlideshowImg":false,"size":{"original":{"width":119,"height":40,"url":"https://media.zenfs.com/en/globenewswire.com/c4d288ff6d04ca790496d4844e18b3bd"},"resized":{"url":"https://s.yimg.com/ny/api/res/1.2/bJKUriehdgWKABlsfyL9bw--/YXBwaWQ9aGlnaGxhbmRlcjt3PTIxMDtoPTcxO2NmPXdlYnA-/https://media.zenfs.com/en/globenewswire.com/c4d288ff6d04ca790496d4844e18b3bd","width":119,"height":40}},"lazy":false},{"type":"text","content":"Umicore launches sale and subsequent lease in of permanent gold inventories unlocking significant value","length":103,"tagName":"p"},{"type":"text","content":"Umicore launches the sale of its permanently tied up gold inventories1 held within the Jewelry & Industrial Metals (JIM) and Precious Metals Refining (PMR) Business Units. In a period of exceptionally attractive market conditions for gold, the sale is expected to generate approximately €410 million2 in net cash proceeds3, strengthening Umicore’s balance sheet and liquidity.","length":380,"tagName":"p"},{"type":"text","content":"Currently, Umicore still owns a portion of the gold required to run the JIM and PMR activities. This inventory is as such continuously tied up in the industrial and logistics operations. Through this transaction, Umicore now optimizes the business model for gold refining by fully substituting these permanently tied up gold inventories with revolving metal leases4 with various counterparties.","length":394,"tagName":"p"},{"type":"text","content":"This enhanced set-up provides a predictable and cost-efficient financing method, while maintaining operational effectiveness.","length":125,"tagName":"p"},{"type":"text","content":"The sale is to be considered as a non-recurring event and is anticipated to generate an EBITDA contribution5 of approximately €480 million. Considering historically quite stable lease rates, the annual lease costs are currently estimated at about €5 million to €8 million (in adj. EBITDA), which will be more than offset by reduced financing costs. The transaction will generate a net after tax capital gain of about €370 million.","length":430,"tagName":"p"},{"type":"text","content":"This transaction is fully aligned with Umicore’s Core strategy, which entails maximizing cash generation from its foundation businesses6, notably through ...

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