Newmont Mining Corp. / NEM (NYSE)

    In the gold patch, Newmont Mining (NEM) reaffirmed its operating outlook for the year, with gold sales likely to be in the 5.2 million ounce to 5.6 million ounce range, down from the 5.9 million ounces sold in 2006. Unit costs for 2007 are expected to be between $375 and $400 an ounce, marking an increase from $304 an ounce last year.


    The company also announced it would make a $1 billion convertible bond offering to cover funds currently borrowed under its revolving credit facility.

    If the price of gold starts to rally, the gold-mining stocks should move higher. If you're buying a mining stock and betting on the price of gold, make sure the miner is not hedged. Hedging has hurt stocks such as Newmont Mining (NEM) and prevented them from benefiting from the rally in gold prices.

    Last Update: 6:59 PM ET Jul 10, 2007


    DENVER, July 10, 2007 /PRNewswire-FirstCall via COMTEX/ -- Newmont Mining Corporation (NEM: Newmont Mining Corporation) today announced its intention to offer, in the aggregate, $1.0 billion of Convertible Senior Notes. The Company intends to use the net proceeds from the offering to repay all amounts outstanding under its corporate revolving credit facility, to enter into the convertible note hedge and warrant transactions described below, and for general corporate purposes. Together with other pending initiatives, including the anticipated realization of value from certain non-core Merchant Banking assets, the Company expects this will provide capital funds to complete Boddington in Australia and the gold mill at Yanacocha in Peru, as well as provide for the potential development of future projects such as Conga in Peru, Akyem in Ghana, and other corporate opportunities.
    The Company intends to issue Convertible Senior Notes due 2014 and 2017, each in the principal amount of $500 million, through an offering to qualified institutional buyers under Rule 144A of the Securities Act. Upon conversion, holders will be entitled to receive cash for that portion of the value of the common stock into which the notes are convertible up to the principal amount of the notes, and excess conversion value, if any, will be satisfied at the Company's election in cash, common stock or a combination of cash and common stock. Newmont also expects to grant the initial purchasers an option to purchase up to an additional $75 million of each of the 2014 and 2017 Senior Convertible Notes to cover over-allotments.
    In connection with the offering of the notes, the Company expects to enter into convertible note hedge transactions with affiliates of one or more of the initial purchasers (the "hedge counterparties") and intends to use a portion of the net proceeds of the offering to pay for the cost of the convertible note hedge transactions. The convertible note hedge transactions are expected to reduce potential dilution to Newmont common stock upon conversion of the notes. The Company also expects to enter into separate warrant transactions with the hedge counterparties, which would result in additional proceeds to the Company and partially offset the cost of the convertible note hedge transactions. The warrant transactions could result in dilution to Newmont common stock in the event that, at exercise, the market value per share of Newmont common stock, as measured under the terms of the warrant transactions, exceeds the applicable strike price of the warrant transactions. If the initial purchasers of the notes exercise their over-allotment options, the Company expects to enter into additional convertible note hedge and warrant transactions.
    In connection with the convertible note hedge transactions and the separate warrant transactions, the hedge counterparties have advised the Company that they, or their affiliates, expect to enter into various derivative transactions with respect to Newmont common stock concurrently with, or shortly after, the pricing of the notes and may enter into, or may unwind, various derivatives and/or purchase or sell Newmont common stock in secondary market transactions following the pricing of the notes. These activities could have the effect of increasing, or preventing a decline in, the price of Newmont common stock concurrently with or following the pricing of the notes. If the hedge counterparties or their affiliates were to unwind various derivatives and/or purchase or sell Newmont common stock in secondary market transactions prior to the maturity of the notes, such activity could adversely affect the price of Newmont common stock or the settlement amount payable upon conversion of the notes.
    This notice does not constitute an offer to sell or the solicitation of an offer to buy securities. Any offers of the securities will be made only by means of a private offering memorandum. The notes and the shares of Newmont common stock issuable upon conversion have not been, and will not be, registered under the Securities Act or the securities laws of any other jurisdiction and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.

    Last Update: 8:00 AM ET Jul 11, 2007


    DENVER, July 11, 2007 /PRNewswire-FirstCall via COMTEX/ -- Newmont Mining Corporation (NEM: Newmont Mining Corporation) today confirmed its previously announced 2007 outlook for gold sales of between 5.2 and 5.6 million equity ounces at costs applicable to sales of between $375 and $400 per ounce, and copper sales of between 210 and 230 million equity pounds at costs applicable to sales of between $1.10 and $1.20 per pound. In addition, the Company continues to expect consolidated capital expenditures of between $1.8 and $2.0 billion for 2007.
    Commenting on the Company's outlook for the rest of the year, newly appointed Chief Executive Officer, Richard O'Brien said, "While we expect second quarter results similar to the first quarter, we are benefiting from lower than anticipated costs at Ahafo in Ghana and the planned reduction in stripping at Batu Hijau in Indonesia. Although the Midas mine in Nevada will remain closed until we can ensure a safe working environment for our employees, we do not expect the closure to impact our guidance for the remainder of the year.
    With the elimination of our gold hedge book, the anticipated realization of value from our non-core Merchant Banking assets, and our planned financing, we are renewing our commitment to improving operating performance and strengthening our balance sheet. We continue to address ramp-up challenges at Phoenix in Nevada, power generation issues in Ghana, and a stronger Australian dollar, while we remain on track to complete the Nevada power plant and Yanacocha gold mill in 2008, and Boddington by late 2008 or early 2009. Our strategic initiatives will continue to emphasize increasing gold price leverage for our shareholders, establishing a sustainable and reliable production base at competitive operating and capital costs, and maintaining our financial strength and flexibility."

    Last Update: 1:10 AM ET Jul 12, 2007


    DENVER, July 11, 2007 /PRNewswire-FirstCall via COMTEX/ -- Newmont Mining Corporation (NEM: Newmont Mining Corporation) today announced the pricing of its $1.0 billion Convertible Senior Notes due 2014 and 2017, each in the principal amount of $500 million. Each series of notes is being sold in a private offering to qualified institutional buyers pursuant to Rule 144A of the Securities Act of 1933. The Company also granted the initial purchasers an option to purchase an additional $75 million of each of the 2014 and 2017 Senior Convertible Notes to cover over-allotments. Subject to customary conditions, the offering is expected to close on July 17, 2007.
    Each series of notes will be guaranteed on a senior unsecured basis by a subsidiary, Newmont USA Limited. The guarantees will be released if Newmont USA Limited ceases to guarantee more than $75 million of other debt of Newmont. The 2014 Notes will pay interest semi-annually at a rate of 1.25% per annum, and the 2017 Notes will pay interest semiannually at a rate of 1.625% per annum. The 2014 and 2017 Notes will be convertible, at the holder's option, at an initial conversion rate of 21.6417 shares per $1,000 principal amount of notes, equivalent to a conversion price of approximately $46.21 per share of common stock. Upon conversion, the Company will pay cash and deliver shares of common stock (or, at the Company's election, in lieu of such shares of common stock, cash or any combination of cash and common stock). The Company does not have an option to redeem the notes prior to their applicable stated maturity date. If the Company undergoes certain fundamental changes, the holders of the notes may require the Company to repurchase the notes at 100% of the principal amount of the notes.
    The Company estimates that the net proceeds from the offering will be approximately $978 million, after deducting estimated discounts and expenses. The 2014 Notes will mature on July 15, 2014 and the 2017 Notes will mature on July 15, 2017.
    In connection with the offering, the Company has entered into convertible note hedge transactions with affiliates of the initial purchasers of the notes (the "hedge counterparties") and intends to use a portion of the net proceeds from this offering to pay for the cost of the convertible note hedge transactions. The convertible note hedge transactions are expected to reduce potential dilution to Newmont common stock upon conversion of the notes. The Company has also entered into separate warrant transactions with the hedge counterparties, which have partially offset the cost of the convertible note hedge transactions. The warrant transactions could result in dilution to Newmont common stock in the event that, at exercise, the market value per share of Newmont common stock, as measured under the terms of the warrant transactions, exceeds the applicable strike price of the warrant transactions.
    In connection with the convertible note hedge and warrant transactions, the hedge counterparties have advised the Company that they or their affiliates expect to enter into various derivative transactions with respect to the common stock of the Company, concurrently with or shortly following pricing of the notes. These activities could have the effect of increasing or preventing a decline in the price of the common stock of the Company concurrently with or following the pricing of the notes. In addition, the hedge counterparties or their affiliates may from time to time, following the pricing of the notes, enter into or unwind various derivative transactions with respect to the common stock of the Company and/or purchase or sell common stock of the Company in secondary market transactions. These activities could adversely affect the price of Newmont common stock or the settlement amount payable upon conversion of the notes.
    The Company intends to use approximately $880 million of the remaining net proceeds from the offering of the notes to repay outstanding indebtedness under the Company's senior revolving credit facility and the remainder to cover the net cost of the convertible note hedge transactions and for general corporate purposes. Together with other pending initiatives, including the anticipated realization of value of certain non-core Merchant Banking assets, the Company expects that this will provide capital funds to complete Boddington in Australia, the gold mill at Yanacocha in Peru and the potential development of future projects such as Conga in Peru, Akyem in Ghana, and other corporate opportunities.
    If the initial purchasers exercise their over-allotment option, the Company expects to use a portion of the additional net proceeds to enter into additional convertible note hedge transactions, with the remainder to be used for general corporate purposes. The Company also expects to enter into additional warrant transactions in connection with such exercise, which will partially offset the cost of the additional convertible note hedge transactions.
    This announcement does not constitute an offer to sell or the solicitation of offers to buy any security and shall not constitute an offer, solicitation or sale of any security in any jurisdiction in which such offer, solicitation or sale would be unlawful. Any offers of the securities will be made only by means of a private offering memorandum. The notes, the subsidiary guarantees and the shares of common stock issuable upon conversion of the notes will not be registered under the Securities Act or the securities laws of any other jurisdiction and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act.

    Last Update: 1:10 AM ET Jul 12, 2007


    DENVER, July 11, 2007 /PRNewswire-FirstCall via COMTEX/ -- Newmont Mining Corporation (NEM: Newmont Mining Corporation) today announced the pricing of its $1.0 billion Convertible Senior Notes due 2014 and 2017, each in the principal amount of $500 million. Each series of notes is being sold in a private offering to qualified institutional buyers pursuant to Rule 144A of the Securities Act of 1933. The Company also granted the initial purchasers an option to purchase an additional $75 million of each of the 2014 and 2017 Senior Convertible Notes to cover over-allotments. Subject to customary conditions, the offering is expected to close on July 17, 2007.
    Each series of notes will be guaranteed on a senior unsecured basis by a subsidiary, Newmont USA Limited. The guarantees will be released if Newmont USA Limited ceases to guarantee more than $75 million of other debt of Newmont. The 2014 Notes will pay interest semi-annually at a rate of 1.25% per annum, and the 2017 Notes will pay interest semiannually at a rate of 1.625% per annum. The 2014 and 2017 Notes will be convertible, at the holder's option, at an initial conversion rate of 21.6417 shares per $1,000 principal amount of notes, equivalent to a conversion price of approximately $46.21 per share of common stock. Upon conversion, the Company will pay cash and deliver shares of common stock (or, at the Company's election, in lieu of such shares of common stock, cash or any combination of cash and common stock). The Company does not have an option to redeem the notes prior to their applicable stated maturity date. If the Company undergoes certain fundamental changes, the holders of the notes may require the Company to repurchase the notes at 100% of the principal amount of the notes.
    The Company estimates that the net proceeds from the offering will be approximately $978 million, after deducting estimated discounts and expenses. The 2014 Notes will mature on July 15, 2014 and the 2017 Notes will mature on July 15, 2017.
    In connection with the offering, the Company has entered into convertible note hedge transactions with affiliates of the initial purchasers of the notes (the "hedge counterparties") and intends to use a portion of the net proceeds from this offering to pay for the cost of the convertible note hedge transactions. The convertible note hedge transactions are expected to reduce potential dilution to Newmont common stock upon conversion of the notes. The Company has also entered into separate warrant transactions with the hedge counterparties, which have partially offset the cost of the convertible note hedge transactions. The warrant transactions could result in dilution to Newmont common stock in the event that, at exercise, the market value per share of Newmont common stock, as measured under the terms of the warrant transactions, exceeds the applicable strike price of the warrant transactions.
    In connection with the convertible note hedge and warrant transactions, the hedge counterparties have advised the Company that they or their affiliates expect to enter into various derivative transactions with respect to the common stock of the Company, concurrently with or shortly following pricing of the notes. These activities could have the effect of increasing or preventing a decline in the price of the common stock of the Company concurrently with or following the pricing of the notes. In addition, the hedge counterparties or their affiliates may from time to time, following the pricing of the notes, enter into or unwind various derivative transactions with respect to the common stock of the Company and/or purchase or sell common stock of the Company in secondary market transactions. These activities could adversely affect the price of Newmont common stock or the settlement amount payable upon conversion of the notes.
    The Company intends to use approximately $880 million of the remaining net proceeds from the offering of the notes to repay outstanding indebtedness under the Company's senior revolving credit facility and the remainder to cover the net cost of the convertible note hedge transactions and for general corporate purposes. Together with other pending initiatives, including the anticipated realization of value of certain non-core Merchant Banking assets, the Company expects that this will provide capital funds to complete Boddington in Australia, the gold mill at Yanacocha in Peru and the potential development of future projects such as Conga in Peru, Akyem in Ghana, and other corporate opportunities.
    If the initial purchasers exercise their over-allotment option, the Company expects to use a portion of the additional net proceeds to enter into additional convertible note hedge transactions, with the remainder to be used for general corporate purposes. The Company also expects to enter into additional warrant transactions in connection with such exercise, which will partially offset the cost of the additional convertible note hedge transactions.
    This announcement does not constitute an offer to sell or the solicitation of offers to buy any security and shall not constitute an offer, solicitation or sale of any security in any jurisdiction in which such offer, solicitation or sale would be unlawful. Any offers of the securities will be made only by means of a private offering memorandum. The notes, the subsidiary guarantees and the shares of common stock issuable upon conversion of the notes will not be registered under the Securities Act or the securities laws of any other jurisdiction and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act.

    In second place, the Rydex Precious Metals Fund (RYPMX) hit the mother lode with a gain of 6.40%. The fund's holdings are allocated to 46.2% Canada, 39.1% U.S., 10.9% South Africa and 2.3% Peru. The largest individual positions include a 15.2% allocation to Freeport-McMoRan Copper & Gold (FCX), 9.1% in Newmont Mining (NEM) and 8.0% in Goldcorp (GG).

    LIMA, Jul 19, 2007 (Dow Jones Commodities News via Comtex) -- The Peruvian government Thursday authorized a local subsidiary of Newmont Mining Corp. (NEM) to obtain four mining concessions near the Chilean border.
    Under Peruvian law, according to the legal decree, foreign mining companies can't obtain concessions within 50 kilometers of the border unless their development is considered a "public necessity."
    In this case, the government determined developing the concessions "will have an important impact on the well-being of the community."
    Newmont's request also has been approved by the Armed Forces Joint Command, according to the legal decree.
    The four concessions are located in the province of Tarata in the department of Tacna.
    Newmont has a majority stake in Minera Yanacocha SRL, located in northern Peru and one of the world's largest gold mines.

    DENVER, July 18, 2007 /PRNewswire-FirstCall via COMTEX/ -- The Board of Directors of Newmont Mining Corporation (NEM: Newmont Mining Corporation) today declared a regular quarterly dividend of $0.10 per share, payable September 28, 2007 to holders of record at the close of business on September 7, 2007.
    In addition, Newmont Mining Corporation of Canada Limited (CA:NMC) today declared a regular quarterly dividend of Cdn $0.1044 per share on its exchangeable shares, payable September 28, 2007 to holders of record at the close of business on September 7, 2007. This dividend is designated as an "eligible dividend" for Canadian tax purposes.
    SOURCE Newmont Mining Corporation

    Newmont Mining Corp. (NEM: Newmont Mining Corporation) said Tuesday that it has promoted Chief Accounting Officer Russell Ball as chief financial officer.
    The Denver-based mining company said in a Securities and Exchange Commission filing that it increased Ball's salary by $50,000 to $420,000.
    Newmont Mining also said it promoted Assistant Controller Roger Johnson to succeed Ball as chief accounting officer.
    Separately, the company said it increased President and Chief Executive Richard T. O'Brien's salary by $200,000 to $900,000 in connection with his promotion to the top post on July 1.

    Additionally, dollar strength would likely be accompanied by weakness in commodity prices and related producers like Exxon Mobil (XOM), Newmont Mining (NEM) and Freeport McMoran Copper & Gold (FCX ), which led the S&P 500's run to an all-time high Thursday even as the financials came unglued.

    Newmont Mining will be more acquisitive in the next few years, with the focus on developing small reserves, the new chief executive of the world’s second largest gold miner said Tuesday.


    In his first newspaper interview since taking over on July 1, Richard O’Brien said his strategy to ensure the US-based company becomes the world’s gold company of choice would involve concentrating on the core business of gold production and intensifying efforts to cut costs.


    Newmont has been blighted by a 21-month pollution trial – it was recently acquitted – opposition to a new mine in Indonesia, and protests in Peru. Last year the Denver-based company was forced to cut its production estimate and increase its costs prediction three times, and it was overtaken by Barrick Gold in gold sales


    Its stock price has fallen 15 per cent in the past year while Barrick’s has risen 21 per cent and the price of gold has climbed 11 per cent.


    Mr O’Brien, 53, who was Newmont’s chief financial officer, told the FT Newmont needs to be “more outward looking” after several years of few acquisitions but that this would require a radical re-think of the company’s traditional practice of developing large deposits.


    “I think we have to have a realisation that . . . the distribution of deposits in the gold world are really such that significant deposits are a small percentage of all the deposits,” he said. “We should over time be able to figure out a way to take what might be an uneconomic deposit for us today and turn it into something economic. That’s what we haven’t done and I hope we can.”


    It will only happen, Mr O’Brien admits, if he can bring down costs, although he claims Newmont’s are lower than the industry average of 12 per cent. “In a period of expanding gold prices we haven’t seen our margin expand as much and I think investors are concerned that we are going to get costs under control,” he said. “The issue for us is to make sure we get [them] under control and make sure that we communicate [this].”


    Newmont’s major assets are in Nevada in the US, Australia, Yanacocha in Peru, Batu Hijau in Indonesia and Ghana. The Boddington mine in Australia, from which Newmont expects to initially get 670,000 ounces a year, is expected to start production in late 2008.


    Newmont sold 5.88m ounces of gold last year and expects sales this year to be between 5.2m and 5.6m ounces. Gold, which was trading Tuesday at approximately $683 an ounce, is likely to continue rising, driven by the weak US dollar, rising costs and rising demand from the burgeoning middle class – particularly in India and China, Mr O’Brien said.


    Mr O’Brien, who is visiting Indonesia, insisted he was still committed to the country despite the costly pollution trial at its Buyat Bay mine in Sulawesi and opposition to a new development near the Batu Hijau mine.

    Conversely, though, says one corporate financier for J.M. Finn in London, a carry-trade-weighted rand would make non-South African miners such as Freeport-McMoRan (FCX), Newmont Mining (NEM), which has mines in New Zealand, and Apollo Mining (AGT ) more competitive.

    DENVER, July 24, 2007 /PRNewswire-FirstCall via COMTEX/ -- Newmont Mining Corporation (NEM: Newmont Mining Corporation) today announced the following executive management appointments, as approved by the Company's Board of Directors on July 18th:


    -- Russell Ball as Senior Vice President and Chief Financial Officer.
    Mr. Ball has been with the Company for 14 years and was elected Vice
    President and Chief Accounting Officer in April, 2007. He previously
    served as Vice President and Controller, Group Executive, Investor
    Relations, and as Financial Director and Controller for the Company's
    Indonesian Business Unit. Mr. Ball will oversee the Company's
    Accounting, Tax, Information Technology, Supply Chain Management and
    Capital Effectiveness functions.


    -- Guy Landsdown as Senior Vice President, Project Development and
    Technical Services. Mr. Landsdown has been with the Company for 14
    years and was elected Vice President, Project Engineering and
    Construction in 2006. He previously served as Project Executive on
    the Boddington project in Australia and held key project and operating
    positions in Indonesia, Peru and Australia. Mr. Landsdown will
    oversee the Company's Technical Services, Global Health and Safety,
    and Capital Projects functions.


    -- Randy Engel as Senior Vice President, Strategy and Corporate
    Development. Mr. Engel has been with the Company for 14 years and was
    elected Vice President, Strategic Planning and Investor Relations in
    April, 2007, and previously served as Assistant Treasurer. Mr. Engel
    will oversee the Company's Corporate Development, Treasury, Investor
    Relations, and Strategic Planning functions.





    Richard O'Brien, the Company's newly appointed CEO and President, said, "These management appointments will fill several open positions and create better functional alignment, enabling us to anticipate, prepare for, and execute the critical transitions ahead. Together with our Regional Vice Presidents of Operations, we continue to take the necessary steps toward renewing our focus on our core gold operations, while improving costs applicable to sales and ensuring industry leading environmental and social performance."

    NEW YORK (MarketWatch) -- Newmont Mining (NEM: Newmont Mining Corporation) said Thursday second-quarter net loss widened to $2 billion, or $4.57 a share, from a gain of $161 million, or 36 cents a share in the year-ago period. The period included a write-down of $1.7 billion on its Merchange Banking goodwill and costs of the elimination of its remaining gold hedge positions. Revenue rose to $1.3 billion from $1.29 billion. Analysts surveyed by Thomson Financial forecast earnings of 22 cents a share and revenue of $1.1 billion, on average.

    SAN FRANCISCO (MarketWatch) -- Newmont Mining Corp. swung to a second-quarter net loss as the mining company unwound its gold hedges and quit its merchant-banking operation, financial results showed Thursday.
    The Denver-based miner (NEM: Newmont Mining Corporation) said it lost $2.06 billion, or $4.57 a share, in the three months ended June 30, a reversal from the $161 million, or 36 cents a share, earned in the second quarter of 2006.
    A charge for writing down the value of the merchant-banking operation accounted for $1.67 billion of that loss, and Newmont said it took a $460 million charge for settling price-capped forward contracts.
    Including only continuing operations, the company said it would have posted a loss of $406 million, or 90 cents a share, for the second quarter.
    And stripping out all unusual losses, including the merchant-banking writedown and hedge unwinding, it made 24 cents a share in profit, said spokesman Omar Jabara.
    Chart of NEM
    Analysts surveyed by Thomson Financial had been expecting earnings of 22 cents a share, on average. Early in July, the company told investors that operating earnings for the second quarter would be little changed from the first quarter, when earnings were 15 cents a share, or 11 cents excluding charges. See earlier story.
    Revenue rose 0.7% to $1.3 billion, topping analysts' average forecast calling for $1.1 billion. Equity gold sales, representing sales just from its stakes in joint mines, fell 10% to 1.25 million ounces, but average realized prices rose 10% to $667 an ounce.
    As the price of gold has held above $600 an ounce, major gold producers have taken off hedges designed to buffer themselves from falling gold. These financial instruments can work against them when prices rise.
    In February, Barrick Gold Corp. (ABX: Barrick Gold Corporation) (CA:ABX) said it eliminated its corporate hedge book and planned to eliminate its remaining floating-price contracts by the end of the second quarter. See story on gold hedges.
    Newmont said it's now the world's largest unhedged gold producer.
    Standing firm on gold sales
    Also Thursday, Newmont held to a forecast for equity gold sales this year of between 5.2 million and 5.6 million ounces. It sees costs applicable to sales of between $375 and $400 an ounce.
    Newmont plans to use proceeds from a $1.15 billion sale of convertible senior notes and the planned sale of parts of its royalty and equity portfolio to raise cash for its mining operations.
    "As we turn our attention to our core gold business, we continue to optimize plans for our prospective gold opportunities, including the potential development of our Conga project in Peru and the Akyem project in China," said CEO Richard O'Brien in a statement.
    Shares of Newmont, one of the few precious-metals companies in the S&P 500

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