How Successful Have Newmont Mining’s Debt Reduction Efforts Been This Year?
Newmont Mining announced the repayment of a term loan due in 2019 earlier in the month, which reduced its outstanding debt by around $275 million. [1] The company also bought back $498 million worth of notes outstanding and repaid the balance on a revolving credit facility earlier in the year. [2] Aided by an improvement in gold prices and the company’s cost reduction initiatives, these actions have translated into a 31% improvement in the company’s Net Debt to EBITDA ratio this year, as illustrated below.
As a result of Newmont Mining’s debt reduction initiatives, the company has maintained its investment grade credit rating. [3] A strengthening of Newmont’s balance sheet will also give the company the financial flexibility to operate in an environment of weaker gold prices than prevailing at present, standing it in good stead for such a scenario.
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
Notes:
See More at Trefis | View Interactive Institutional Research (Powered by Trefis)
Notes:- Newmont Pays Remaining Balance on Term Loan Maturing in 2019, Newmont Mining News Release [↩]
- Newmont Mining’s Q2 2016 10-Q, SEC [↩]
- Moody’s confirms Newmont’s Baa2 Sr. Unsec. Rating; Outlook Stable, Moody’s Investors Services [↩]