Newmont Mining Corporation (ticker: NEM, exchange: New York Stock Exchange (.N))
News Release -
Newmont to Record Write-Down of Non-Core Investment in Australian Magnesium Corporation
DENVER, June 13 /PRNewswire-FirstCall/ -- Australian Magnesium Corporation
(AMC) (ASX: ANM) today announced that it had reached agreement with the major
stakeholders in the Stanwell Magnesium Project to restructure the activities
As a result, while Newmont Mining Corporation
(NYSE: NEM; ASX; Toronto: NMC) will retain its 27.8% ownership interest in
AMC, the Company will record a non-cash write-down in the second quarter in
relation to its investment in AMC. At the end of the first quarter, the book
value of the Company's investment in AMC was $95.8 million.
In addition, Newmont was required to assume certain guarantees and
commitments at the time it acquired Normandy Mining Limited in February 2002.
As a result of AMC's restructuring, the existing A$75 million contingent
facility provided by Newmont will be cancelled, in return for a new A$10
million (approximately $6.5 million) contingent credit facility to be provided
by Newmont. Newmont will also be reviewing the need to take additional
charges in connection with a guarantee relating to a magnesium sale agreement
and a guarantee pertaining to an AMC subsidiary.
Commenting on the AMC situation, President Pierre Lassonde noted: "We are
pleased that we were able to assist with the restructuring of AMC. While we
met our inherited obligation to financially support AMC earlier this year, we
had to make a key strategic decision when the Stanwell Project cost overrun
was announced. We decided that a further investment in the magnesium business
was not in the best interests of Newmont's shareholders."
Newmont, based in Denver, is the world's premier gold mining company and
the largest gold producer with significant assets on five continents.
SOURCE Newmont Mining Corporation
/CONTACT: Investor, Russell Ball, +1-303-837-5927,
firstname.lastname@example.org, or Wendy Yang, +1-303-837-6141,
email@example.com, or Nicola Frazer, +61-8-8303-1756,
firstname.lastname@example.org, or Media, Doug Hock, +1-303-837-5812,
email@example.com, or Danielle Martin, +61-8-8303-1911,
firstname.lastname@example.org, all of Newmont Mining Corporation/
/Web site: http://www.newmont.com /
CO: Australian Magnesium Corporation; Newmont Mining Corporation
ST: Colorado, Australia
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7012 06/13/2003 16:01 EDT http://www.prnewswire.com