DENVER – NEWMONT MINING CORP. announced on July 5, 2007, that it has eliminated its entire 1.85-million-oz gold hedge position, making the company the worlds largest unhedged gold producer. Newmont also plans to discontinue its merchant banking segment.
During June 2007, Newmont spent US$578 million to eliminate its entire price-capped forward gold sales contracts. The company will report a pre-tax loss of approximately US$531 million on the early settlement of these contracts, after a US$47-million reversal of previously recognized deferred revenue.
As a result of the decision to discontinue the merchant banking segment and monetize components of its equity and royalty portfolio, Newmont expects to incur a
non-cash impairment charge of approximately US$1.7 billion, to be recorded as part of discontinued operations, in the second quarter of 2007.
The companys website is at www.Newmont.com.