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Newmont Goldcorp buying back a billion dollars worth of shares

Company says all repurchased shares will be retired, resulting in immediate accretion to shareholders.
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Newmont (TSX: NGT) announced on Tuesday board authorization of a stock repurchase program for up to $1 billion of common equity to be completed in the next 12 months.

The program will be executed at the company’s discretion, utilizing open market repurchases to occur from time-to-time throughout the authorization period, said a company news release.

The Company’s stock repurchase program aligns with its disciplined capital allocation priorities, which include returning cash to shareholders, investing in profitable growth and maintaining an investment grade credit profile.

All shares repurchased will be retired, resulting in immediate accretion to shareholders by reducing total shares outstanding and improving per share financial performance, said the release.

Newmont has a strong track record of delivering continuous and sustainable improvements to its operations through superior operational execution and its Full Potential program, which has generated more than $2.5 billion of total value since 2013.2 Newmont has completed its Goldcorp integration process and is now positioned to realize over $500 million per annum in total cash flow improvements by 2021 from G&A and exploration synergies, supply chain efficiencies, and Full Potential cost and productivity improvements, said the company statement.

“Our share repurchase program reflects the confidence we have in our people, our operations and our balance sheet to deliver substantial value upside and returns for our shareholders,” said Tom Palmer, President and Chief Executive Officer.

“Working closely with our Board of Directors, we determined that current market conditions, combined with $635 million of expected cash proceeds from the sales of Red Lake and our equity investment in Continental, create a compelling opportunity to initiate our $1 billion share buyback program over the next 12 months whilst we continue to return cash to shareholders through sustainable dividends,” palmer continued.




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