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Newmont Mining Buying Back $500 Million In Senior Notes

Newmont Mining Corp, (NYSE: NEM) is planning to pay down some of its debt obligations, announcing a $500 million debt tender offer, Monday. In a press release the company says that it plans to pay up to $400 million for its 5.125% Senior Notes, due 2019. The rest of the money will be spread with priority going to the company’s 6.250% Senior Notes, due 2039, $3.500% and then Senior Notes due 2022 and 5.875% Senior Notes due 20135. Note holders have until noon EST, March 38 to submit their bonds for the buy-back program. According to the press release, bond holders of the 2019 notes could receive hypothetical total consideration of $1,072.28 per $1,000 note due 2019. At the same time investors could receive a total payout of $921.98 for the senior notes due in 2039, $971.22 for the note due 2022 and $894.60 for notes due 20235. The firms managing the tender offer are Bank of America Merrill Lynch and Goldman Sachs, with Mizuho Securities, as a co-dealer manager. After paying down the debt, the company will still have about half a billion in 2019 notes with 0.75% due February 15, 2019.“It’s been the result of a lot of hard work over the last several years to continue to get our costs structure down,” said the company’s CEO Gary Goldberg, in an interview with Kitco News at the BMO Metals & Mining Conference. “We look at not only reducing our net debt but with this step our total debt within the business.”

By Neils Christensen of Kitco News; nchristensen@kitco.com
Follow me on Twitter @neils_C

 

OceanaGold Announces ‘Design Enhancements’ At Haile; Construction On Schedule


Monday February 29, 2016 09:39

OceanaGold Corp. (TSX/ASX/NZX: OGC) says design of the Haile project in South Carolina has been improved to allow a more “robust operation,” with construction are on schedule for first ore through the mill by the end of 2016.OceanaGold acquired Haile in a merger with Romarco Minerals Inc. last year. The capital cost of Haile is now estimated at $380 million, with $160 million spent to date. The total is a 14% increase from the original Romarco December 2014 technical report estimate of $333 million. Construction activities at Haile are “going well,” the company says. All but two major construction contracts have been issued to local contractors and $240 million of the total capital was committed as of the end of January. Engineering is 98% complete while procurement is 82% complete. “Our team’s extensive development and operations experience has resulted in design enhancements for the Haile project which, based on our past experience, will ensure a robust and efficient project that is on track for first ore through the mill by the end of 2016,” says Mick Wilkes, president and chief executive officer. The company also issued an upbeat assessment of its exploration program.

By Allen Sykora of Kitco News; asykora@kitco.com

 

Endeavour Mining Announces Increase In Reserves


Monday February 29, 2016 09:39

Endeavour Mining (TSX: EDV; OTCQX:EDVMF) says that as of the end of 2015, proven and probable mineral reserves stood at 5.9 million ounces of gold, while measured and indicated mineral resources amounted to 11 million, representing 32% and 39% increases, respectively, over the previous year.  "We are very pleased with our 2015 exploration program as the success achieved through reserve replacement and mine life extension at both Agbaou and Tabakoto is expected to generate immediate value,” says Neil Woodyer, chief executive officer of Endeavour. “Furthermore, the value-accretive Ity mine acquisition has added 1.6Moz of reserves and 3.1Moz of M&I resources, at an implied price of $9 per attributable M&I resource ounce, which compares very favorably to our average discovery cost.”

By Allen Sykora of Kitco News; asykora@kitco.com

 

Coeur Extends High-Grade Mineralization At Rochester


Monday February 29, 2016 09:39

Coeur Mining, Inc. (NYSE: CDE) announces the extension of high-grade silver-gold mineralization at the Rochester mine in northwestern Nevada at the East Rochester zone. Favorable results include 179.1 feet of 4.75 ounces-per-tonne silver and 0.009 oz/t gold, or 5.31 oz/ton silver- equivalent, Coeur says. Drilling began in 2014. Coeur Mining is the largest U.S.-based silver producer and a significant gold producer with five precious metals mines in the Americas.

By Allen Sykora of Kitco News; asykora@kitco.com

 

 

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