Newmont has been assigned a first-time, long-term issuer default rating of A- by international credit rating agency Fitch.
The rating has also been applied to Newmont’s senior unsecured debt, reflecting Newmont’s industry leadership, global scale and diversified operating position in low-risk jurisdictions.
“The ratings from Fitch recognise Newmont’s ongoing financial strength and flexibility, which is supported by our proven strategy and industry leadership position,” Newmont president and chief executive officer Tom Palmer said.
“Our disciplined and balanced approach to capital allocation remains unchanged, and we are committed to maintaining a strong financial position and an investment-grade balance sheet.
“Combined with robust annual free cash flows, our balance sheet enables profitable reinvestment into our business while generating leading returns to shareholders across price cycles.”
Newmont is expecting its financial position and industry leadership to be further strengthened after it completes its acquisition of Newcrest. The acquisition process has been ongoing since May 14 2023.
“The combination would create a world-class portfolio of assets with the highest concentration of Tier 1 operations, primarily in favourable, low-risk mining jurisdictions,” Newmont said.
“Upon closing of the transaction, the combined company would deliver a multi-decade production profile from 10 large, long-life, low cost Tier 1 operations, and increased annual copper production primarily from Australia and Canada.”
Combined, the business is expected to generate annual pre-tax synergies of US$500 million, which is expected to be achieved within the first two years.