How Successful Have Newmont Mining’s Debt Reduction Efforts Been?
With gold prices declining sharply over the course of 2014 and 2015, Newmont Mining made a concerted effort to lower its debt burden. Using the proceeds of the sale of high-cost mines and improved cash flows (through cost reduction measures and the rationalization of capital spending), the company has managed to pay off some of its outstanding debt. Newmont targets a further $0.8 -$1.3 billion reduction in debt from 2016 -2018, with the company retiring $500 million worth of its outstanding bonds in Q1 through a tender offer. Assuming that this is the only debt reduction step carried out by the company in 2016, we have estimated the figures shown in the table below. As a cumulative result of the company’s debt reduction efforts and cost reduction efforts (which have helped prop up the company’s EBITDA), Newmont Mining is set to report improved measures of indebtedness ( as shown below), which will lend the company greater financial flexibility as gold prices recover.
Have more questions about Newmont Mining? See the links below.
- What Is Newmont Mining’s Revenue And EBITDA Breakdown?
- What Is Newmont Mining’s Fundamental Value Based On Expected 2015 Results?
- How Has Newmont Mining’s Revenue Composition Changed Over The Last 5 Years?
- By What Percentage Did Newmont Mining’s Revenue & EBITDA Decline In The Last 5 Years?
- By What Percentage Can Newmont Mining’s Revenue & EBITDA Grow In The Next 3 Years?
- How Will Newmont Mining’s Revenue Composition Change by 2020?
- Newmont Mining: A Look Back At The Year 2015
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