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Newmont Goldcorp Closes Offering of Senior Notes Due 2029

Zacks Equity Research

Newmont Goldcorp Corporation NEM recently announced that it has received total net proceeds of around $690 million post closure of its registered public offering of $700 million principal amount of 2.8% senior notes due 2029.

The company plans to use the low-cost capital to repay the outstanding notes due on Oct 1, 2019. The remaining portion will be used for general corporate purposes. The move will add liquidity to Newmont Goldcorp’s strong balance sheet.  

Notably, the notes are treated as senior unsecured obligations of the company and ranks equally with its current and future unsecured senior debt as well as senior to its future subordinated debt. Also, the notes are guaranteed on a senior unsecured basis by Newmont Goldcorp’s subsidiary, Newmont USA Limited.

Newmont Goldcorp’s shares have rallied 25.6% in the past year compared with 58% surge of the industry.


The company expects attributable gold production for 2019 to be 6.5 million ounces that reflects 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 KGC, Alamos Gold Inc AGI and Arconic Inc 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 155.7% for 2019. The company’s shares have surged 71% in the past year.

Alamos Gold has projected earnings growth rate of 324% for the current year. The company’s shares have rallied 37.2% in a year’s time.

Arconic has an estimated earnings growth rate of 50% for the current year. Its shares have moved up 19.3% in the past year.

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