Beiträge von GSP-Komet

JOHANNESBURG, South Africa, July 27, 2007 /PRNewswire-FirstCall via COMTEX/ -- Gold Fields Limited ("Gold Fields") (GFI: gold fields ltd new sponsored adr) is pleased to announce that agreement has been reached in terms of which JCI Limited (JCI) and Randgold & Exploration Company Limited (R&E) will relinquish certain rights which they have to ground contiguous to South Deep Gold Mine (South Deep) for a consideration of R400 million plus VAT.
The agreement is subject to, inter alia, the approval of shareholders representing at least 50% of the shares entitled to vote at general meetings of both JCI and R&E. The JCI and R&E shareholders meetings are expected to take place during the last week of September.
Irrevocable undertakings of support for the proposed transaction have been received from shareholders representing 57% of JCI shares and 52% of R&E shares entitled to vote at the respective meetings.
The transaction, if implemented, will result in Western Areas Limited (a 100% subsidiary of Gold Fields Limited) owning 74% of a company which holds the exploration rights to the ground in question, with Peotona Gold, a black empowerment company, holding the balance.
It is estimated that the contiguous ground, immediately to the East of South Deep, contains an indicated resource of approximately 16.2 million ounces of gold at a cut off grade of 5 grams per ton. This ground could be accessed through the existing South Deep Infrastructure.

JOHANNESBURG, Jul 27, 2007 (Dow Jones Commodities News via Comtex) -- Gold Fields Ltd. (GFI) has added an indicated resource of 16.2 million troy ounces with plans to acquire exploration rights to land adjacent to its Deep South gold mine, the South African company said Friday.
Gold Fields, Africa's second-largest gold producer, said it will acquire certain rights for 400 million rand ($57 million) plus tax from JCI Ltd. (JCD.JO) and Randgold & Exploration Co. (RANGY).
The proposed deal would see wholly owned Western Areas Ltd. owning 74% of a company that holds exploration rights to ground near South Deep, one of the biggest high-quality gold-ore bodies in the world. The balance would be owned by black empowerment company Peotana Gold.

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But the knock-on effect of the hike in the value of the rand is being sorely felt in the earnings of South African gold miners such as Gold Fields (GFI - Cramer's Take - Stockpickr - Rating), Randgold Resources (GOLD - Cramer's Take - Stockpickr - Rating), Harmony Gold Mining (HMY - Cramer's Take - Stockpickr - Rating), and AngloGold Ashanti (AU - Cramer's Take - Stockpickr - Rating). With a stronger rand, the miners' exports are becoming less competitive. And the evidence is in the companies' recent results.

Gold Fields' net income decreased by nearly 50% in the first quarter this year, falling to $51.6 million from $104 million in the previous quarter. Harmony Gold Mining fared similarly, with net income down 45% to $35 million in the first quarter, and earnings for Randgold Resources down by 10% in the same period, to just $12.29 million.

It wasn't so long ago that the miners were faced with similar problems. In 2003, when platinum reached a 23-year high, the appreciating rand against the dollar meant that South African producers saw effective declines of 9% on the year as exports became uncompetitive.

The miners fear that just as the rand had begun to look like it had weakened for good, an unwelcome return to past levels of 6 rand to the dollar may be coming back to haunt them. But that is exactly what Japanese retail foreign exchange speculators are gunning for.

"We believe the new darling of the yen carry trade could be the South African rand," says David Karsboel, head of Market Strategy for Saxo Bank in Copenhagen. "It could happen if Japanese housewives grow tired of 8.25% interest rates in New Zealand and decide to look for 9.5% instead."

JOHANNESBURG, Jul 26, 2007 (Dow Jones Commodities News via Comtex) -- Edited Press Release
Conquest Mining Ltd. (CQT.AU) has entered a binding joint venture agreement with Gold Fields Australasia Pty Ltd. for the wholly-owned subsidiary of Gold Fields Ltd. (GFI) to earn a 51%interest in part of Conquest's Central Queensland landholdings.
Conquest in a statement on its Web site dated July 25 said the Regional JV Area comprises eight exploration tenements covering an area of some 1,600 square kilometers. Within the Regional JV Area is an excluded zone of approximately 7 km2 where Conquest has progressed its Mt Carlton project, including the outstanding Silver Hill deposit, and is presently undertaking pre-feasibility work with a view to developing an open pit mining operation.
During the 51% earn-in phase, Conquest will continue to solely develop its Mt Carlton project while Gold Fields undertakes exploration within the Regional JV Area.
Upon satisfying predetermined drill length based criteria and minimum exploration spend, Gold Fields Australasia has an option to increase its interest in the Regional JV Area by acquiring a further 24% and will also have an option to purchase a 50% interest in the Mt Carlton project.
The involvement of Gold Fields will help realize material upside in Conquest's exploration acreage within the Regional JV Area.
In the medium term, the agreement affords Conquest the means to pursue a dual path of becoming a producer, via development of the Mt Carlton project, whilst maintaining an aggressive exploration program on the now recognized highly prospective surrounding Regional JV Area.
Gold Fields is the fourth-largest gold producer in the world with a market capitalization of $11 billion. The company produces over 4 million oz of gold annually, and has significant ore reserves of 94 million oz and resources of 215 million oz. Gold Fields has operating mines in South Africa, Australia, Ghana, and Venezuela as well as a developing project in Peru.
Gold Fields is obliged to expend at least $5 million in respect of the Regional JV Area in the first 12 months of the JVA.
Conquest Mining Limited is an ASX-listed multi-commodity explorer. Conquest's exploration projects include the Mt Carlton gold/silver/copper project near Charters Towers, the Crush Creek gold joint venture with Basin Gold Pty Ltd., the Collinsville gold/copper project. the Leonora gold JV with Hannans Reward Ltd.
Company Web site: http://www.conquestmining.com.au

JOHANNESBURG, Jul 18, 2007 (Dow Jones Commodities News via Comtex) -- Edited Press Release
South African gold miner DRDGold Ltd. (DROOY) said majority-owned Emperor Mines Ltd.'s (EMP.AU) Tolukuma gold mine in Papua New Guinea was likely to be negatively impacted by a transformer failure in part of the hydropower generation plant at the mine.
According to Australia-listed Emperor, management said that the mine was currently operating on 50% power after a fault was detected in the generation plant, and would remain so for approximately one week largely due to the time required for replacement parts to be sent from Western Australia.
Mine management said that milling and other energy intensive activities at the mine had been temporarily halted while repairs were made, however other mining activities are continuing.

JOHANNESBURG, Jul 20, 2007 (Dow Jones Commodities News via Comtex) -- South Africa's largest gold producers are set to resume wage negotiations with the country's trade unions Monday, the Chamber of Mines said Friday.
The chamber, which is negotiating on behalf of AngloGold Ashanti Ltd. (AU), Gold Fields Ltd. (GFI) and Harmony Gold Mining Co. (HMY), said the talks in Johannesburg will mark the fourth round of negotiations with the National Union of Mineworkers, Solidarity and United Association of South Africa.
The companies have offered a 7% wage hike in the face of demands for a 15% increase.

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

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.

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).

Construction Workers Surpass Milestone of One Million Man Hours Without a Lost Time Accident Project Remains on Schedule and on Budget toward January 2008 Startup

COEUR D'ALENE, Idaho, Jul 16, 2007 (BUSINESS WIRE) -- Coeur d'Alene Mines Corporation (CDE: Coeur d'Alene Mines Corporation) (CA:CDM) today announced that construction workers at its large San Bartolome silver project in Bolivia have collectively surpassed the milestone of one million man-hours without a lost time accident, while remaining on schedule and on budget toward an anticipated January 2008 startup date. Through June 30, the project had posted 1,110,867 man-hours without a lost time accident.
The construction of San Bartolome, which is expected to produce approximately 9 million ounces of silver in its first year, currently employs approximately 1,100 workers through its South American Subsidiary Empresa Minera Manquiri, and its contractors, most of whom are Bolivians.
Site preparation work is essentially complete, and concrete foundation work is well advanced. Construction of the leach tanks is also well advanced, and all major contracts have been awarded.
"One million man-hours without a lost time accident is a major milestone for any mine, and with San Bartolome further demonstrates Coeur's worldwide approach to mine safety which has resulted in the safe working conditions and efficiency employed at our new silver mine," said Dennis E. Wheeler, Chairman, President and Chief Executive Officer of Coeur. "San Bartolome is not only bringing well-paying jobs to the people of Bolivia, it is doing so in a safe and productive work environment. We are extremely proud of the San Bartolome team, led by Jim Duff, all of Coeur's contractors, and the entire workforce in Bolivia for maintaining this positive construction momentum, while maintaining discipline over costs and schedule."
"This is the kind of safety and efficiency Coeur strives to bring to all its projects around the world," Wheeler added.
Additional photos of construction progress at San Bartolome are available on the Coeur website, http://www.coeur.com.
Coeur d'Alene Mines Corporation is one of the world's leading primary silver producers and a growing gold producer. The company has mining interests in Alaska, Argentina, Australia, Bolivia, Chile, Nevada, and Tanzania.

DENVER, July 19, 2007 /PRNewswire-FirstCall via COMTEX/ -- ROYAL GOLD, INC. (RGLD: Royal Gold Inc) (CA:RGL) , the leading precious metals royalty company, today announced the initiation of gold production subject to the Company's royalty interests at the Taparko-Bouroum ("Taparko") gold mine in Burkina Faso, West Africa, operated by High River Gold Mines Ltd. ("High River"). Royal Gold holds four royalty interests at this property.
The Company's royalty interests at Taparko include: 1) TB-GRS1 - a 15% gross smelter return ("GSR") royalty on all gold produced that will terminate when either cumulative production of 804,420 ounces of gold is achieved or until Royal Gold receives $35 million in cumulative payments; 2.) TB-GSR2 - a sliding scale GSR royalty on all gold produced that will terminate with GSR1; 3.) TB-GSR3 - a 2% GSR royalty on all gold contained in and produced from Taparko that will go into effect after GSR1 is terminated; and 4.) TB-MR1 - a 0.75% milling royalty on all gold mined outside of Taparko that is processed through Taparko processing facilities.
At a gold price of $650 per ounce, Royal Gold will receive an amount equal to 21.5% of the gross gold production from the two initial GSR royalties. High River commenced processing ore and completed its initial gold pour on July 17, 2007. The operation is expected to continue to ramp up production over the next few months.
Commenting on the start-up of the Tarparko mine, Tony Jensen, President and Chief Executive Officer of Royal Gold, said, "We congratulate the operating team at High River in bringing the Taparko mine into production and recognize their hard work to construct and now commission the operation. Based upon the operator's production estimate of 60,000 ounces of gold for calendar 2007, this royalty will be an important contributor to our revenue stream. Taparko is another example of successful execution on our growth strategy."
Royal Gold is a precious metals royalty company engaging in the acquisition and management of precious metal royalty interests. Royal Gold is publicly traded on the NASDAQ Global Select Market under the symbol "RGLD," and on the Toronto Stock Exchange under the symbol "RGL". The Company's web page is located at http://www.royalgold.com.

Last Update: 8:01 PM ET Jul 11, 2007

DENVER, July 11, 2007 /PRNewswire-FirstCall via COMTEX/ -- Vista Gold Corp.'s (TSX & Amex: VGZ) President and CEO Michael Richings explains Vista's strategy and future plans:
"Vista recently announced (May 10, 2007) the completion of a transaction that resulted in the launch of a new publicly owned company, Allied Nevada Gold Corp. Since completion of this transaction, Vista's share price has been quite volatile and has generally traded in a price range lower than what we and our advisors had expected. Based on calls we have received and conversations I have had with investors, I am concerned that there may be some confusion concerning Vista, its assets and its strategy. I therefore wish to clarify our plans and strategy and to confirm that Vista intends to continue to provide value and leverage to the gold investor.
First, a little background on our strategy: in 2002, we started acquiring already discovered gold deposits and by 2006 we had under our control 13 projects, with substantial gold resources. The 11 project acquisitions made during this period were, in our view, at a very low cost, and our plan was to hold these in anticipation of higher gold prices. This strategy worked well and as the gold price increased, we added significant value to the Corporation which was reflected in a strong share price. However, we felt we could do better.
In early 2006, we took steps to place our Nevada assets into a new Nevada-based mining company -- Allied Nevada, which we felt would cause these assets to be more highly valued. At the same time, we had an opportunity to acquire one of the largest privately held packages of mining property interests in Nevada. We felt the combination of our assets, the new assets and an experienced management and board, would generate increased returns for our shareholders. When the transaction was completed, approximately 65% of the shares of Allied Nevada were distributed to Vista shareholders, approximately 4% of the Allied Nevada shares were retained by Vista, and approximately 31% of the Allied Nevada shares were paid as partial payment to the vendors of the property interests. Allied Nevada is well financed and managed, and its early trading has been consistent with our estimate of value. We anticipate significant returns for our shareholders who received Allied Nevada shares, as its resources are explored and developed.
In the almost 12 months it took us to complete the Allied Nevada transaction, the gold price has traded consistently over $600 per ounce and it has become evident to us that the leverage to gold price we had earlier achieved by holding the resources in the ground is no longer as high as it was. Furthermore, higher gold prices and increased competition make it more difficult to add value by the acquisition of quality resources at accretive prices. We have therefore modified our strategic plan.
Vista now holds seven gold properties (please see our website for a tabulation of properties, resources and reserves) and the mineral deposits on these properties are well defined, with approximately 71% of the estimated gold resources categorized as measured and indicated. Three of these are advanced and either preliminary feasibility studies (Paredones Amarillos) or preliminary assessments (Mt. Todd and Yellow Pine) have been completed. Based on the recently completed studies and evaluations for Paredones Amarillos, Mt. Todd and Yellow Pine (published on SEDAR and our website), we believe these projects are potentially economic to develop at current gold prices. We have therefore modified our plans to implement a staged development plan of these three advanced projects, which will include studies that will seek to eliminate economic and technical uncertainties about the development of these mines. We will continue to hold the remaining properties for higher gold prices and continue to seek the acquisition of new resources as opportunities arise.
One of the more important goals in implementing this strategic plan is to significantly reduce the uncertainties associated with these projects, in the anticipation that the reduction of these uncertainties will be reflected positively in our share price. Each of Vista's projects has the benefit of significant historic expenditures made by other companies on testing, engineering and evaluation, which information and experience Vista acquired along with the properties for, what we believe were, very modest investments. The most advanced project is the Paredones Amarillos in Mexico and we plan to advance this project so that in 2008 we can make the decision to construct and build the mine. If we decide to proceed with development and operation of all three of our advanced projects and assuming a favorable gold price, Vista could be a mid-size producer in the next five years.
Vista's management team has demonstrated over the past five years the ability to undertake, negotiate and complete a variety of transactions designed to add value for Vista's shareholders. In particular, the creation of Allied Nevada has provided Vista shareholders with excellent exposure to a well-run Nevada based mining company. The team will continue to seek out opportunities to generate increased shareholder value going forward."
About Vista Gold Corp.
Since 2001, Vista has acquired a number of discovered gold projects with the expectation that higher gold prices would significantly increase their value. As gold prices have risen, Vista has completed various preliminary evaluations that have demonstrated that some of the projects would be potentially viable operations at today's gold prices. Currently, Vista is undertaking technical programs to bring the most advanced projects to the point where decisions can be made to put these projects into production, either by Vista, or through sale or joint venture to other mining companies. Vista's holdings include the Paredones Amarillos and Guadalupe de los Reyes Projects in Mexico, Mt. Todd Project in Australia, Yellow Pine Project in Idaho, Awak Mas Project in Indonesia, Long Valley Project in California, and the Amayapampa Project in Bolivia.

Last Update: 9:15 AM ET Jul 9, 2007

GOLDEN, Colo., July 9, 2007 /PRNewswire-FirstCall via COMTEX/ -- Canyon Resources Corporation (CAU: canyon resources corp com new) , a Colorado-based mining company, is pleased to announce that it has commissioned Chlumsky, Armbrust and Meyer LLC (CAM) of Lakewood, Colorado, to conduct final engineering and feasibility study work on its Reward gold project located near Beatty, Nevada. This study will develop project economics and a reserve estimate while providing a blueprint for project development.
This feasibility study follows a positive pre-feasibility study conducted for the project in January 2006 and a report showing a significant increase in mineralized material completed in May 2007. Many of the components of this study have already been completed or are in process including: heap leach pad design, electrical supply, water supply, geotechnical study and additional metallurgical test work. The project concept for Reward is development by conventional open pit mining methods and standard crushing and heap leach technology for gold recovery. Leach solutions would be circulated through activated carbon, concentrating the gold. This loaded carbon would then be transported to either Canyon's Briggs Mine in California or to a third party gold facility for production of gold dore for sale or shipment to a third party refiner.
"We are very pleased to advance Reward towards final feasibility study and reserve declaration. Our expectation for this project is a positive feasibility study that shows significant cash flow generation potential," states James Hesketh, President & CEO.
The permitting process for Reward is also going smoothly and is well advanced. A Plan of Operations has been submitted to the Las Vegas Field Office of the Bureau of Land Management (BLM) and found to be complete. The BLM has completed internal scoping and Canyon has contracted preparation of an Environmental Assessment to support the BLM's NEPA review. Archeological and biologic assessment studies are being expanded to fill in gaps left by prior studies. Applications for a Water Pollution Control Permit and a Reclamation Permit have been submitted to the Nevada Division of Environmental Protection. The Division has determined the applications are complete and Canyon is providing additional information to support the Division's technical review.
About Canyon Resources
Canyon Resources, based in Golden, Colorado, was formed in 1979. The Company has a history of precious metals exploration success and can claim a number of significant discoveries. Canyon currently owns two near-term production properties, four advanced stage exploration and two grass roots properties. In addition, we are partnered in a uranium joint venture property. For additional information on Canyon Resources and its properties, please visit our website at http://www.canyonresources.com.

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.

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: 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.

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.

Newmont Mining (NEM) expects second-quarter results to be similar to the first quarter, benefitting from lower than anticipated cost at Ahafo in Chana, planned reduction in stripping at Batun Hijau in Indonesia. It sees $1.8-$2 billion capex for 2007.

...(NEM) Newmont Mining priced a $1 Billion convertible note offering...