Newmont Goldcorp Announces Pricing Of Senior Notes Due 2029

Newmont Goldcorp Corporation (NYSE:NEM) announced the pricing of its public offering of $700 million total principal amount of 2.8% senior notes due 2029. The company expects the offering to close on Sep 16, 2019, which is subject to customary conditions.

Notably, the company stated that the notes will be senior unsecured obligations. Moreover, the notes will rank equally with the company’s existing and future unsecured senior debt as well as senior to future subordinated debt.

Per Newmont Goldcorp, the notes will be guaranteed on a senior unsecured basis by its subsidiary, Newmont USA Limited. The net proceeds from the offering are expected to be around $690 million, after deducting projected discounts (before expenses).

Newmont Goldcorp plans to utilize the net proceeds from the offering to repay its outstanding 5.125% senior notes due Oct 1, 2019. The remaining portion will be used for general corporate purposes.

Newmont Goldcorp’s shares have rallied 30.6% in the past year compared with 88.2% surge of the industry.

The company expects attributable gold production for 2019 to be 6.5 million ounces reflecting Newmont operated assets for the full year and Goldcorp assets from Apr 18, 2019.

For 2019, Newmont Goldcorp expects all-in sustaining costs for gold to be $975 per ounce. Also, costs applicable to sales for gold is projected at $735 per ounce.

Zacks Rank & Key Picks

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

Some better-ranked stocks in the basic materials space are Kinross Gold Corporation (NYSE:KGC) , Alamos Gold Inc. (TSX:AGI) and Arconic Inc. (NYSE:ARNC) , all sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Kinross has an expected earnings growth rate of 160% for 2019. The company’s shares have surged 79.5% in the past year.

Alamos Gold has projected earnings growth rate of 320% for the current year. The company’s shares have rallied 60.5% in a year’s time.

Arconic has an estimated earnings growth rate of 50% for the current year. Its shares have moved up 18.6% in the past year.

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