Newcrest Mining Limited - New Bilateral Bank Loan Facilities and Voluntary R&D Tax Amendment
MELBOURNE, Australia, Oct. 17, 2013 /CNW/ - Newcrest Mining Limited (ASX: NCM) The Company has agreed documentation with two new banks to provide bilateral loan facilities for an additional US$450m (in aggregate), on terms consistent with the Company's existing bilateral loan facilities.
The proposed new facilities will provide the Company with additional liquidity headroom, expertise and diversity.
Maturities extend across late 2015 (US$100m), 2016 (US$125m), 2017 (US$100m) and 2018 (US$125m).
Final steps for execution of the proposed new facilities and satisfying the conditions precedent are underway. It is anticipated that the proposed new facilities will be in place shortly.
As disclosed in Newcrest's 2013 Annual Report, a number of research and development claims made during the 2005 to 2011 financial years are currently under review by the Australian Taxation Office and Innovation Australia.
Newcrest has continued to consider and analyse all of its material Australian research and development claims. Newcrest has also considered the outcomes of recent tribunal decisions in relation to research and development claims by other taxpayers. As a consequence of this continuing analysis, the Newcrest Board has now determined that the Company should voluntarily amend some of the R&D claims made during the 2009 to 2011 period.
As a result of the voluntary amendment, it is expected there will be an increase to income tax expense of approximately A$120 million in aggregate, to be recognised in the December 2013 half year period, notwithstanding that this adjustment relates to past income years. Due to the availability of taxation losses, the cash tax to be payable in the 2014 financial year is approximately A$70 million.
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