Rocky Mountain News
Newmont: Merger costs could total $90M
By The Associated Press
March 27, 2002
Newmont Mining Corp. said Wednesday it expects to incur at least $90 million in direct costs from its acquisitions of Normandy Mining Ltd. and Franco-Nevada Mining Corp. earlier this year.
Newmont Mining said in its annual report filed with the Securities and Exchange Commission that it spent $4.1 million as of Dec. 31, 2001, and would capitalize the expenses.
Newmont Mining, a Denver owner of metals and mineral mines, completed its combined $4.5 billion acquisition of Normandy and Franco-Nevada at the end of February.
Newmont Mining expects to realize savings of $70 million in the first full year after the acquisitions and sees the savings rising to $90 million in the following year.
The cost reductions will result from the rationalization of corporate overhead and exploration and development budgets, as well as operating efficiencies and reductions associated with procurement, interest and tax benefits, Newmont Mining said in the filing.
In February, Newmont Mining said it plans to raise $250 million to $300 million in the first year through asset sales, including some of Normandy's smaller operations outside Australia.
Elsewhere in its annual report, Newmont Mining said it budgeted $315 million for capital expenditures in 2002 as a stand-alone company, compared with $401.6 million in 2001, but will modify the budget to account for the acquisitions.
Newmont Mining's capital-expenditures budget includes $27.8 million in costs to comply with environmental regulations, more than double the $12.1 million it spent in 2001. |
