DENVER, June 25 /CNW/ -- Newmont Mining Corporation (NYSE: NEM)
("Newmont" or "the Company") is pleased to announce that it has successfully
completed the acquisition of the remaining 33.33% interest in the Boddington
project from AngloGold Ashanti Australia Limited, a wholly-owned subsidiary of
AngloGold Ashanti Ltd. Newmont now owns 100% of the Boddington project, which
is the largest gold project in Australia.
Richard O'Brien, President and Chief Executive Officer of Newmont, said,
"The Boddington acquisition fits well with our strategy of providing
sustainable and profitable production in favorable geo-political
jurisdictions. We are pleased to have 100% of this asset within our portfolio
and now look forward to the successful startup of this world-class project."
The total consideration for the 33.33% interest consists of $750 million
paid in cash at closing, $240 million payable in cash and/or Newmont common
stock, at Newmont's option, in December 2009, and a royalty capped at $100
million, equal to 50% of the average realized operating margin (if any)
exceeding $600 per ounce, payable on one-third of gold sales from Boddington.
The transaction closing follows receipt of approvals from the Australian
Foreign Investment Review Board, Western Australia Ministry of Mines and South
African Reserve Bank and the receipt of consents and agreements from third
parties. Newmont will incur closing costs of approximately $60 million,
primarily associated with stamp duties, which will be expensed in the second
quarter of 2009. The valuation date for the transaction is January 1, 2009,
and closing adjustments were made to reflect Newmont's economic ownership
position from that date.
Boddington is a large, open pit mine in Western Australia, located 130
kilometers southeast of Perth. At the end of May 2009, the Boddington project
was 96% complete, with start-up expected in mid-2009 and an anticipated
12-month ramp-up schedule. The Company continues to expect total capital
costs to be between $2.6 and $2.9 billion on a 100% basis.
Boddington will be Australia's largest gold producer upon completion,
with expected average annual gold production of approximately one million
ounces at costs applicable to sales of approximately $300 per ounce (on a
by-product basis) for the first full five years of operation, and an expected
mine life in excess of 20 years. Newmont believes Boddington has significant
exploration potential with gold reserves, on a 100% basis, increasing from
16.6 million ounces in 2007 to 20.1 million ounces in 2008.
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 and other applicable laws.
Such forward-looking statements include, without limitation (i) estimates of
gold and copper production and sales; (ii) estimates of costs applicable to
sales; (iii) estimates of capital expenditures, project costs, and expenses;
(iv) estimates regarding timing of future development, construction,
production or closure activities; (v) statements regarding future exploration
results, exploration expenditures, and reserves; (vi) statements regarding
potential cost savings, productivity, operating performance, cost structure
and competitive position; and (vii) expectations regarding the start-up time,
design, mine life, production, costs applicable to sales and exploration
potential of the Boddington mine. 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, forward-looking 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 and other metals
price volatility, currency fluctuations, increased production costs and
variances in ore grade or recovery rates from those assumed in mining plans,
political and operational risks in the countries in which we operate, and
governmental regulation and judicial outcomes. For a more detailed discussion
of such risks and other factors, see the Company's 2008 Annual Report on Form
10-K, filed February 19, 2009, as amended by Amended Annual Report on Form
10-K/A filed June 8, 2009, 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.
For further information:
For further information: Investors, John Seaberg, +1-303-837-5743,
firstname.lastname@example.org, or Media, Omar Jabara, +1-303-837-5114,
email@example.com, both of Newmont Mining Corporation Web Site: