Boston, MA 04/07/2014 (wallstreetpr) – Newmont Mining Corp (NYSE:NEM) has closed its five year amortizing long term loan worth $575 million, proceeds from the loan will be used to repay the company’s convertible debt that is to mature in July 2014. The company has also announced it has renewed its $3 billion corporate revolving credit facility by essentially extending its maturity date by two year to March 31, 2019. The term loan will enable the company repay its 2014 maturities as well as provide the much needed flexibility to reduce outstanding debt in the coming months.
Extending maturity of the revolving credit facility is expected to enhance the company’s liquidity profile. Both facilities are unsecured and will require a single financial covenant with a net-debt-to capitalization ratio of below 62.5%. As of December 31, 2013, the company’s leverage ratio stood at 29%.
Newmont Denies Production Cuts at the Indonesian Copper Mine
Newmont Mining Corp (NYSE:NEM) has refuted claims it has abandoned production works at its Indonesian mines, as a standoff between it and Indonesian Government on matter related to increased export taxes continues. The company maintains that talks are still ongoing to resolve the standoff amicably and quickly.
The production cuts claims arose after Indonesia mineral enterprise director reported that production had been cut by 70% at the Batu Hijau Mines as the dispute drags on.
Standoff between Newmont and Indonesia
Newmont Mining Corp (NYSE:NEM) is vehemently opposing the new taxes on exports which are expected to considerably affect the company’s revenue for the year. The Indonesian government has imposed a ban on mineral ore exports as a way of boosting local industries and also introduced escalating export taxes.
There have been concerns that Newmont and Freeport-McMoRan Copper & Gold Inc. (NYSE:FCX) who account for 97% of Indonesia total copper had halted their operations as part of a strike against the new implemented laws. Freeport paid a total of $1 billion in 2012 to the Indonesia with Newmont thought to have paid a total of $3 billion since 2,000.
Newmont Mining Corp (NYSE:NEM) is optimistic that normal mining operations should continue at the mine,at least for the next two months. Negotiations are still ongoing as both parties try to come to an agreement.
