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Gold/Mining/Energy : Newmont Mining(NEM) & Newmont Gold(NGC)
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To: Broken_Clock who wrote (129)4/27/1999 3:30:00 PM
From: Broken_Clock   of 587
 
Tuesday April 27, 2:07 pm Eastern Time

S&P revises Homestake Mining
outlook

(Press release provided by Standard & Poor's)

NEW YORK, April 27 - Standard & Poor's today affirmed its
double-'B' corporate credit rating on Homestake Mining Co.
and triple-'B' corporate credit rating on Newmont Mining
Corp (NEM - news).

The outlook on both companies has been revised to stable from negative.

The outlook revision in both cases reflects recent events and improving industry fundamentals
that have reduced Standard & Poor's concerns over further significant declines in the price of
gold.

Specifically:

-- Concerns over future significant gold sales from central bank reserves have largely abated.

Standard & Poor's expects reduced levels of central bank gold sale activity over the
near-medium term versus 1998 levels.

Any future gold sales are expected to occur in an orderly liquidation, allowing the market to
absorb the additional supply;

-- Fears over sales of gold from Russian reserves to support its staggering economy have
diminished as current negotiations between the International Monetary Fund (IMF) and Russian
authorities are expected to result in a new package of loans and economic reforms;

-- Current gold prices appear to reflect possible IMF gold sales to provide debt relief to
poorer nations under its ''Highly Indebted Poor Countries'' initiative.

If approved this summer, expectations are that the IMF will liquidate approximately 10 million
ounces;

-- Approval of a Swiss referendum (April 18) that de-linked the Swiss Franc from a gold link
and discussions regarding the possible liquidation of 1,300 tonnes of gold from the Swiss
central bank did not result in a significant decline in gold prices from recent trading
ranges.

It appears that any gold sales from the Swiss central bank would not begin until the spring of
2000 and would occur in an orderly liquidation over a number of years, reducing the risk of
market disruptions; and

-- Largely as a result of improving economic conditions in the Far East and reduced central
bank sales, the gap between fabrication demand and supply is expected to increase in 1999.

Standard & Poor's expects gold prices to average between $270/oz. to $305/oz. for 1999.

OUTLOOK (Newmont Mining Corp.): STABLE

Although Newmont is expected to continue to maintain a favorable cost position going forward
due to the low gold price environment and scope of capital expenditures, material debt
reduction is not expected.

OUTLOOK (Homestake Mining Co.): STABLE

Although Homestake is expected to benefit from increased future production as it brings its
recent acquisitions on line, Standard & Poor's expects net debt leverage to increase as the
company funds capital projects through cash balances and debt usage.
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