Newmont (NEM) Pays Balance On Term Loan Due 2019

Newmont Mining Corporation (NYSE:NEM) said that it has paid off the remaining $275 million balance under its Term Loan due in 2019. The premature repayment of the term loan results in lower overall corporate debt position and reduced cash interest expense.

The repayment of the term loan signifies the company’s strategy to improve the business, reinforce the portfolio and create shareholder value. The company continues to increase its financial flexibility and improving its balance sheet position while progressing two new mines and three expansion projects on course – all on time, and either at or below budget.

Newmont has strong liquidity with about $6 billion in cash, revolver capacity and marketable securities on its balance sheet. The company will continue to assess and optimize the best use of free cash flow which will incorporate investing in profitable projects, repaying debt and returning capital to shareholders.

Newmont’s shares closed around 0.6% lower at $44.17 on Aug 19.
Newmont reported second-quarter 2016 adjusted earnings of 44 cents per share, a 69.2% surge from 26 cents earned in the year-ago quarter. Earnings also surpassed the Zacks Consensus Estimate of 28 cents.

On a reported basis, the company posted net income from continuing operations of $50 million or 9 cents per share, a roughly 20.1% decline from net earnings of $63 million or 13 cents per share recorded a year ago. The primary adjustment to net income was a $174 million tax adjustment related to prior period earnings.

Newmont's revenues of $2,038 million went up 6.8% from $1,908 million in the year-ago quarter as higher gold volumes and pricing more than offset lower copper volumes and pricing. Revenues also topped the Zacks Consensus Estimate of $1,863 million.

Newmont currently carries a Zacks Rank #3 (Hold).

Better-ranked companies in the gold mining space include New Gold, Inc. (TO:NGD) , B2Gold Corp. (NYSE:BTG) and AngloGold Ashanti Ltd. (NYSE:AU) , all sporting a Zacks Rank #1 (Strong Buy).