Newmont Corporation (NYSE: NEM, TSX: NGT) (Newmont or the
Company) today announced fourth quarter and full year 2022 results,
as well as its 2023 and longer-term outlook.
Achieved 2022 Guidance, Safely Delivered on our
Commitments
- Produced 6.0 million gold ounces and 1.3 million gold
equivalent ounces from copper, silver, lead and zinc; achieved
original production guidance range set in December 2021
- Gold all-in sustaining costs* were $1,211 per ounce,
in-line with updated guidance range despite global cost pressures
throughout the year
- Generated $1.1 billion in free cash flow* after $2.7
billion of meaningful reinvestment into the business to advance our
most profitable near-term projects
- Safely delivered on our commitments and remained focused on
fatality risk management; recognized as the Top Miner in the
2022 Dow Jones Sustainability Index for our unwavering commitment
to leading ESG practices
Announced 2023 and Longer-Term Outlook; Underpinned by Strong
Gold Production and Improving Costs**
- As previously signaled, 2023 production guidance is expected
to be between 5.7 and 6.3 million gold ounces; steadily
improves longer-term, driven by strong production from world-class
assets and an unmatched project pipeline
- Gold all-in sustaining costs* are expected to be between
$1,150 and $1,250 per ounce in 2023; incorporates an additional
3% of cost inflation compared to 2022, which is expected to be
largely offset by Full Potential cost efficiencies
- Sustaining capital spend of $1.0 to $1.2 billion in
2023; remaining steady across the five-year period
- Development capital spend of $1.2 to $1.4 billion in
2023; meaningful reinvestment to strengthen our global
portfolio
2023 Dividend Payout Range Established Within
Industry-Leading Framework***
- Provides a sustainable base dividend of $1.00 per share;
at base reserves price of $1,400 per ounce
- Incremental dividend payout of $0.40 to $0.80 per share;
calibrated at $1,700 per ounce and incorporating free cash flow
impacts from industry-wide inflationary pressures and a period of
meaningful reinvestment
- Annualized dividend payout range of $1.40 to $1.80 per
share***; subject to quarterly approval by Board of
Directors
- Declared fourth quarter 2022 dividend of $0.40 per
share****; set at the midpoint of the 2023 dividend payout
range
"Newmont safely delivered on our commitments in 2022 and
finished the year from a position of strength, meeting our full
year production guidance and generating $4.6 billion in adjusted
EBITDA and $1.1 billion in free cash flow. As we look ahead to 2023
and beyond, we expect to steadily increase production and improve
costs from our balanced, global portfolio of world-class assets and
robust project pipeline. We remain committed to our disciplined and
balanced approach to capital allocation, allowing us to maintain an
investment-grade balance sheet while steadily reinvesting in the
business and providing superior returns to shareholders through our
industry-leading dividend framework. With more than 100 years of
history and experience, Newmont is well-positioned to continue
safely delivering industry-leading results, while remaining
grounded in our values and driven by our purpose to create value
and improve lives through sustainable and responsible mining."
- Tom Palmer, President and Chief Executive Officer
*Non-GAAP metrics; see reconciliations at
the end of this release.
**See discussion of outlook and cautionary
statement at the end of this release regarding forward-looking
statements.
***Expectations regarding 2023 dividend
levels are forward-looking statements. The dividend framework is
non-binding, and an annualized dividend has not been declared by
the Board. The declaration and payment of future quarterly
dividends remains at the discretion of the Board of Directors and
will depend on the Company’s financial results, cash flow and cash
requirements, future prospects, and other factors deemed relevant
by the Board. See cautionary statement at the end of this
release.
****The dividend of $0.40 per share of
common stock for the fourth quarter of 2022 is payable on March 23,
2023 to holders of record at the close of business on March 9,
2023.
Newmont Delivers Strong Fourth Quarter Performance;
Achieves Full-Year 2022 Guidance
Q4'22
Q3'22
Q4'21
FY'22
FY'21
Average realized gold price ($ per
ounce)
$
1,758
$
1,691
$
1,798
$
1,792
$
1,788
Attributable gold production (million
ounces)
1.63
1.49
1.62
5.96
5.97
Gold costs applicable to sales (CAS) ($
per ounce)
$
940
$
968
$
802
$
933
$
785
Gold all-in sustaining costs (AISC) ($ per
ounce)
$
1,215
$
1,271
$
1,056
$
1,211
$
1,062
GAAP net (loss) income from continuing
operations ($ millions)
$
(1,488
)
$
218
$
(61
)
$
(459
)
$
1,109
Adjusted net income ($ millions)
$
348
$
212
$
624
$
1,468
$
2,371
Adjusted net income per share ($/diluted
share)
$
0.44
$
0.27
$
0.78
$
1.85
$
2.96
Adjusted EBITDA ($ millions)
$
1,161
$
850
$
1,599
$
4,550
$
5,963
Cash flow from continuing operations ($
millions)
$
1,010
$
466
$
1,299
$
3,198
$
4,266
Capital expenditures ($ millions)
$
646
$
529
$
441
$
2,131
$
1,653
Free cash flow ($ millions)
$
364
$
(63
)
$
858
$
1,067
$
2,613
FOURTH QUARTER AND FULL YEAR 2022 HIGHLIGHTS
- Achieved original production guidance range set in December
2021; produced 1.63 million attributable gold ounces and 296
thousand attributable gold equivalent ounces (GEO) of co-products
in the fourth quarter, for a total of 6.0 million attributable gold
ounces and 1.3 million attributable co-product GEOs in 2022
- Reported fourth quarter gold Costs Applicable to Sales (CAS)*
of $940 per ounce and All-In Sustaining Costs (AISC)* of $1,215;
full year CAS of $933 per ounce and AISC of $1,211 per ounce are in
line with updated guidance amidst industry-wide cost pressures
- Generated $1.0 billion of cash from continuing operations and
$364 million of Free Cash Flow in the fourth quarter, for a
full-year total of $3.2 billion and $1.1 billion,
respectively*
- Ended the year with $2.9 billion of consolidated cash, $829
million of short-term time deposits and $6.7 billion of liquidity;
reported net debt to adjusted EBITDA ratio of 0.5x*
- Reported Adjusted Net Income (ANI)* of $0.44 per share and
Adjusted EBITDA* of $1.2 billion for the fourth quarter, for a
full-year total of $1.85 per share and $4.6 billion,
respectively
- Returned $1.7 billion to shareholders in 2022
- Reported increased reserves of 96 million gold ounces and
resources of 111 million gold ounces**; significant upside to other
metals, including copper, silver, lead and zinc
- Advanced profitable near-term projects, including Tanami
Expansion 2, Ahafo North, Pamour and Cerro Negro District Expansion
1
- Safely delivered on our commitments and remained focused on
fatality risk management; recognized as the Top Miner in the 2022
Dow Jones Sustainability Index for our unwavering commitment to
leading ESG practices
*Non-GAAP metrics; see reconciliations at
the end of this release.
** Total resources presented includes
Measured and Indicated resources of 75.3 million gold ounces and
Inferred resources of 36.1 million gold ounces. See cautionary
statement at the end of this release.
FOURTH QUARTER 2022 ADJUSTED NET INCOME
In the fourth quarter of 2022, Newmont reported Adjusted Net
Income of $348 million or $0.44 per share due to higher sales
volumes and higher realized gold prices compared to the third
quarter. Significant non-cash accounting charges were adjusted out
of the Company's earnings, compared to GAAP Net Loss from
Continuing Operations of $(1.5) billion, primarily related to
impairment charges of $1.3 billion and reclamation charges of $700
million recorded at year end in conjunction with the Company's
annual review.
- $511 million impairment of long-lived assets at CC&V;
primarily due to the decision to transition to a leach-only
operation, resulting in lower future production and reduced future
cash flows from the site
- $459 million impairment of the full goodwill balance at Cerro
Negro; primarily due to lower discounted cash flows from an
increase in the country specific discount rate, reflective of
current macroeconomic risk and uncertainty in Argentina
- $341 million impairment of the full goodwill balance at
Porcupine; primarily due to lower discounted cash flows from higher
costs driven by inflationary pressures and the expansion of the
active tailings storage facility, ensuring compliance with the
Global Industry Standard on Tailings Management (GISTM)
- $529 million reclamation adjustment at Yanacocha; primarily due
to updated capital costs for construction of the two water
treatment plants due to updated design considerations, recent
inflation and supply chain disruption impacts on the estimated
construction costs and higher post-closure management costs
- $91 million reclamation adjustment at Porcupine; primarily due
to higher water management and other closure costs due to
inflationary pressures
The site-specific goodwill amounts originated from the Goldcorp
purchase price allocation four years ago, which was based on best
estimates of each site's value and country-risk assumptions at that
time. Non-cash accounting charges have been adjusted out of the
Company's earnings metrics for the fourth quarter and full
year.
FOURTH QUARTER AND FULL YEAR 2022 FINANCIAL AND PRODUCTION
SUMMARY
Attributable gold production1 for the year remained flat
at 5,956 thousand ounces compared to the prior year.
Attributable gold production for the fourth quarter remained
flat at 1,630 thousand ounces compared to the prior year
quarter.
Gold CAS totaled $5.4 billion for the year. Gold CAS
per ounce2 increased 19 percent to $933 per ounce compared to
the prior year, primarily due to higher direct operating costs as a
result of inflationary pressures, driven by higher labor costs and
higher input commodity prices, notably fuel and energy costs. In
addition, costs were impacted by inventory write-downs at Nevada
Gold Mines, Yanacocha, CC&V and Akyem, lower by-product
credits, the Peñasquito Profit-Sharing Agreement entered into in
2022 and lower gold sales volumes.
Gold CAS increased 17 percent to $1.5 billion from the prior
year quarter. Gold CAS per ounce increased 17 percent to $940 per
ounce compared to the prior year quarter, primarily due to higher
direct operating costs as a result of inflationary pressures and
higher third party royalties.
Gold AISC per ounce3 increased 14 percent to $1,211 per
ounce compared to the prior year, primarily due to higher CAS per
ounce and higher sustaining capital spend.
Gold AISC per ounce increased 15 percent to $1,215 per ounce
compared to the prior year quarter, primarily due to higher CAS per
ounce and higher sustaining capital spend.
Attributable GEO production from other metals for the
year remained largely flat at 1,275 thousand ounces compared to the
prior year.
Attributable GEO production from other metals for the quarter
decreased 7 percent to 296 thousand ounces from the prior year
quarter primarily due to lower co-product grades mined at
Peñasquito, partially offset by higher copper grade mined at
Boddington.
CAS from other metals totaled $1.0 billion for the year.
CAS per GEO2 increased 28 percent to $819 per ounce from the
prior year, primarily due to higher direct operating costs as a
result of inflationary pressures, as well as the Peñasquito
Profit-Sharing Agreement entered into in 2022.
CAS from other metals totaled $267 million for the quarter. CAS
per GEO increased 16 percent to $857 per ounce from the prior year
quarter, primarily due to higher direct operating costs as a result
of inflationary pressures and higher allocation of costs to
co-product metals, partially offset by favorable inventory
changes.
AISC per GEO3 for the year increased 24 percent to $1,114
per ounce from the prior year primarily due to higher CAS from
other metals, higher treatment and refining costs, and higher
sustaining capital spend.
AISC per GEO for the quarter increased 16 percent to $1,166 per
ounce from the prior year quarter primarily due to higher CAS from
other metals, higher treatment and refining costs, and higher
sustaining capital spend.
Average realized gold price for the year increased $4 per
ounce to $1,792 per ounce compared to the prior year, including
$1,800 per ounce of gross price received and $8 per ounce
reductions for treatment and refining charges.
Average realized gold price for the quarter decreased $40 per
ounce to $1,758 per ounce compared to the prior year quarter,
including $1,751 per ounce of gross price received, the favorable
impact of $12 per ounce mark-to-market on provisionally-priced
sales and $5 per ounce reductions for treatment and refining
charges.
Revenue for the year remained largely flat at $11.9
billion compared to the prior year.
Revenue for the quarter decreased 6 percent to $3.2 billion
compared to the prior year quarter, primarily due to lower realized
gold prices.
Net loss from continuing operations attributable to
Newmont stockholders for the year was $(0.5) billion or $(0.58) per
diluted share, a decrease of $1.6 billion from the prior year
primarily due to the impairment of goodwill at Cerro Negro of $459
million and Porcupine of $341 million, impairment of long-lived
assets at CC&V of $511 million, higher CAS predominately
resulting from cost inflation impacts and lower sales volumes for
all metals except copper. These decreases were partially offset by
lower reclamation and remediation expense resulting from
adjustments mainly related to non-operating Yanacocha sites, lower
income tax expense and the loss on assets held for sale in 2021
related to the Conga mill assets.
Net loss from continuing operations attributable to Newmont
stockholders for the quarter was $(1.5) billion or $(1.87) per
diluted share, a decrease of $1.4 billion from the prior year
quarter primarily due to the impairment charges recorded in the
fourth quarter and higher CAS predominately resulting from cost
inflation impacts. These decreases were partially offset by lower
reclamation and remediation expense resulting from adjustments
mainly related to non-operating Yanacocha sites, and lower income
and mining tax expense.
Adjusted net income4 for the year was $1.5 billion or
$1.85 per diluted share, compared to $2.4 billion or $2.96 per
diluted share in the prior year. Primary adjustments to 2022 net
income include total impairment charges of $1.3 billion,
reclamation and remediation adjustments primarily related to
non-operating Yanacocha and Porcupine sites of $713 million and a
pension settlement charge of $137 million.
Adjusted net income for the quarter was $348 million or $0.44
per diluted share, compared to $624 million or $0.78 per diluted
share in the prior year quarter. Primary adjustments to fourth
quarter net income include total impairment charges of $1.3
billion, reclamation and remediation adjustments of $700 million
and a gain on asset and investment sales of $61 million primarily
related to the sale of the investment in MARA.
Adjusted EBITDA5 for the year decreased 24 percent to
$4.6 billion, compared to $6.0 billion for the prior year.
Adjusted EBITDA for the quarter decreased 27 percent to $1.2
billion for the quarter, compared to $1.6 billion for the prior
year quarter.
Capital expenditures6 increased 29 percent to $2.1
billion for the full year and increased 46 percent to $646 million
for the quarter, compared to prior year, primarily due to higher
development capital spend during a period of meaningful
reinvestment, as well as slightly higher sustaining capital.
Development capital expenditures in 2022 primarily related to
Tanami Expansion 2, Yanacocha Sulfides, Ahafo North, Pamour and
Cerro Negro District Expansion 1.
Consolidated operating cash flow from continuing
operations decreased 25 percent to $3.2 billion for the full
year compared to the prior year, primarily due to an increase in
operating cash expenditures resulting from the impacts of inflation
on input costs and lower consolidated sales volumes, as well as
several payments made during the year, including a $95 million
payment related to the Peñasquito profit-sharing agreement related
to 2021 results, an $83 million payment related to the Ghanaian
employment model change and a $39 million payment related to our
strategic alliance with Caterpillar Inc.
Consolidated operating cash flow from continuing operations
decreased 22 percent to $1.0 billion for the quarter compared to
the prior year quarter, primarily due to an increase in operating
cash expenditures resulting from the impacts of inflation on input
costs, lower consolidated sales volumes and lower average realized
metal prices for all metals except silver.
Free Cash Flow7 decreased to $1.1 billion for the full
year and $0.4 billion for the quarter, compared to the prior year,
primarily due to lower operating cash flow and higher capital
expenditures.
Balance sheet and liquidity remained strong in 2022,
ending the year with $2.9 billion of consolidated cash and $829
million of time deposits with a maturity of less than one year,
with approximately $6.7 billion of total liquidity; reported net
debt to adjusted EBITDA of 0.5x8.
Nevada Gold Mines (NGM) attributable gold production for
the year was 1,169 thousand ounces, with CAS of $989 per ounce2 and
AISC of $1,220 per ounce3. NGM attributable gold production for the
quarter was 324 thousand ounces, with CAS of $934 per ounce and
AISC of $1,186 per ounce. NGM EBITDA9 was $0.9 billion for the full
year and $251 million for the quarter.
Pueblo Viejo (PV) attributable gold production was 285
thousand ounces for the year and 65 thousand ounces for the
quarter. Cash distributions received from the Company's equity
method investment of $165 million for the year and $27 million for
the fourth quarter.
1 Attributable gold production includes
285 thousand ounces and 65 thousand ounces from the Company’s
equity method investment in Pueblo Viejo (40%) in 2022 and the
fourth quarter, respectively.
2 Non-GAAP measure. See end of this
release for reconciliation to Costs applicable to sales.
3 Non-GAAP measure. See end of this
release for reconciliation to Costs applicable to sales.
4 Non-GAAP measure. See end of this
release for reconciliation to Net income (loss) attributable to
Newmont stockholders.
5 Non-GAAP measure. See end of this
release for reconciliation to Net income (loss) attributable to
Newmont stockholders.
6 Capital expenditures refers to Additions
to property plant and mine development from the Consolidated
Statements of Cash Flows.
7 Non-GAAP measure. See end of this
release for reconciliation to Net cash provided by operating
activities.
8 Non-GAAP measure. See end of this
release for reconciliation.
9 Non-GAAP measure. See end of this
release for reconciliation.
Progressing Profitable Near-Tear Projects from Unmatched
Organic Pipeline
Newmont’s project pipeline supports stable production with
improving margins and mine life*. Newmont's 2023 and longer-term
outlook includes current development capital costs and production
related to Tanami Expansion 2, Ahafo North, Pamour and Cerro Negro
District Expansion 1. Development capital outlook for 2023 and 2024
includes spend related to the Yanacocha Sulfides project ahead of
the investment decision planned for late 2024; additional
development capital spend and all metal production for Yanacocha
Sulfides has been excluded from longer-term outlook beginning in
2025.
Additional projects not listed below represent incremental
improvements to the Company's outlook.
- Tanami Expansion 2 (Australia)
secures Tanami’s future as a long-life, low-cost producer by
extending mine life beyond 2040 through the addition of a 1,460
meter hoisting shaft and supporting infrastructure to process 3.3
million tonnes per year and provide a platform for future growth.
The expansion is expected to increase average annual gold
production by approximately 150,000 to 200,000 ounces per year for
the first five years and reduce operating costs by approximately 10
percent, bringing average all-in sustaining costs to $900 to $1,000
per ounce for Tanami (2026-2030). Commercial production for the
project is expected in the second half of 2025. As previously
indicated in July 2022, total capital costs are estimated to be
between $1.2 and $1.3 billion, incorporating the significant
impacts from Covid-related restrictions and protocols and the
current market conditions for labor and materials. Development
costs (excluding capitalized interest) since approval were $499
million, of which $215 million related to 2022.
- Ahafo North (Africa) expands our
existing footprint in Ghana with four open pit mines and a
stand-alone mill located approximately 30 kilometers from the
Company’s Ahafo South operations. The project is expected to add
between 275,000 and 325,000 ounces per year with all-in sustaining
costs of $800 to $900 per ounce for the first five full years of
production. Ahafo North is the best unmined gold deposit in West
Africa with approximately 3.8 million ounces of Reserves and 1.4
million ounces of Measured, Indicated and Inferred Resources and
significant upside potential to extend beyond Ahafo North’s current
13-year mine life. Commercial production for the project is
expected in the second half of 2025. As previously indicated in
July 2022, total capital costs are estimated to be between $950 and
$1,050 million, incorporating the cost associated with delayed land
access. Development costs (excluding capitalized interest) since
approval were $212 million, of which $145 million related to
2022.
- Yanacocha Sulfides (South America)
will develop the first phase of sulfide deposits and an integrated
processing circuit, including an autoclave to produce 45% gold, 45%
copper and 10% silver. The first phase focuses on developing the
Yanacocha Verde and Chaquicocha deposits to extend Yanacocha’s
operations beyond 2040 with second and third phases having the
potential to extend life for multiple decades. In the third quarter
of 2022, Newmont announced the decision to delay the project in
order to manage project execution risk, move out of a period of
significant inflation and to balance development capital cash
flows. Management continues to assess the execution and project
timeline, up to and including transitioning Yanacocha operations
into full closure; the project remains subject to an investment
decision. Development capital spend on the project is expected to
be approximately $300 to $350 million per year in 2023 and 2024
related to advanced engineering, procurement and completing camp
construction.
- Pamour (North America) extends the
life of Porcupine and maintains production beyond 2024. The project
will optimize mill capacity, adding volume and supporting high
grade ore from Borden and Hoyle Pond, while supporting further
exploration in a highly prospective and proven mining district. An
investment decision is now expected in late 2023 as opportunities
have been identified to extend production from current operations,
allowing for a deferral of project spending. Formal updates to
capital estimates and estimated project completion will be provided
closer to the investment decision.
- Cerro Negro District Expansion 1
(South America) includes the simultaneous development of the
Marianas and Eastern districts to extend the mine life of Cerro
Negro beyond 2030. The project is expected to improve production to
above 350,000 ounces beginning in 2024 and provides a platform for
further exploration and future growth through additional
expansions. Development capital costs for the project are now
estimated to be between $350 and $450 million, incorporating
inflationary pressures and supply chain impacts in Argentina.
* Project estimates remain subject to
change based upon uncertainties, including future market
conditions, continued impacts from the COVID-19 pandemic, the
Russian invasion of Ukraine, inflation, commodities and raw
materials prices, supply chain disruptions, labor markets,
engineering and mine plan assumptions, future funding decisions,
consideration of strategic capital allocation and other factors,
which may impact estimated capital expenditures, AISC and timing of
projects. See end of this release for cautionary statement
regarding forward-looking statements.
2023 and Longer-Term Outlook Underpinned by Strong Production
and Improving Costs
Guidance Metric
2023E
2024E
2025E
2026E
2027E
Attributable Gold Production (Moz)
5.7 - 6.3
5.9 - 6.5
5.9 - 6.5
6.1 - 6.7
6.1 - 6.7
Gold CAS ($/oz)*
$870 - $970
$850 - $950
$780 - $880
$750 - $850
$750 - $850
Gold AISC ($/oz)*
$1,150 - $1,250
$1,100 - $1,200
$1,000 - $1,100
$1,000 - $1,100
$1,000 - $1,100
Sustaining Capital**
$1,000 - $1,200
$1,000 - $1,200
$1,000 - $1,200
$1,000 - $1,200
$1,000 - $1,200
Development Capital**
$1,200 - $1,400
$1,200 - $1,400
$800 - $1,000
$500 - $700
$300 - $500
*Consolidated basis; **Attributable
basis
2023 AND LONGER-TERM OUTLOOK HIGHLIGHTS
- As previously signaled, 2023 production guidance is between 5.7
and 6.3 million gold ounces; steadily improves to between 6.1 and
6.7 million ounces in the longer-term, driven by strong production
from world-class assets and an unmatched organic project pipeline;
further enhanced by profitable production from other metals
- Gold CAS guidance is $870 to $970 per ounce and Gold AISC
guidance is $1,150 to $1,250 per ounce for 2023, improving
longer-term due to declining inflationary pressure assumptions and
increased production levels
- Sustaining capital guidance is $1.0 to $1.2 billion for 2023,
consistent with longer-term averages
- Development capital guidance is $1.2 to $1.4 billion for 2023
and 2024 during a period of meaningful reinvestment; longer-term
development capital is expected to average between $0.8 to $1.0
billion per year
Newmont’s outlook reflects increasing gold production and
ongoing investment into its operating assets and most promising
growth prospects. Newmont's reserves and mine planning gold price
assumption has been set at $1,400 per ounce. 2023 outlook assumes a
$1,700 per ounce revenue gold price for CAS and AISC to reflect
current cost environment including royalties and production taxes.
For 2023, Newmont has assumed normalizing levels of inflation,
improving throughout the year, with a year-over-year average
escalation rate of approximately 3%.
Outlook includes development capital, costs and production
related to Tanami Expansion 2, Ahafo North, Pamour and Cerro Negro
District Expansion 1. Development capital outlook for 2023 and 2024
includes spend related to the Yanacocha Sulfides project ahead of
the investment decision planned for late 2024; additional
development capital spend and all metal production for Yanacocha
Sulfides has been excluded from longer-term outlook beginning in
2025. As previously signaled, Newmont is critically assessing
options for the Yanacocha Sulfides project, up to and including
transitioning Yanacocha operations into full closure, which may
have an impact on expected capital spend included in outlook for
2023 and 2024.
Please see the cautionary statement and footnotes for additional
information.
ASSUMPTIONS AND SENSITIVITIES
Assumption
Change (-/+)
FCF Impact ($M)
(+/-)
AISC Impact ($/oz)
(-/+)
Gold ($/oz)
$1,700
$100
$400
$5
Australian Dollar
$0.70
$0.05
$60
$15
Canadian Dollar
$0.77
$0.05
$35
$10
Oil ($/bbl)
$90
$10
$20
$5
Copper ($/lb)
$3.50
$0.25
$15
$—
Silver ($/oz)
$20.00
$1.00
$15
$2
Lead ($/lb)
$0.90
$0.10
$10
$—
Zinc ($/lb)
$1.35
$0.10
$30
$—
Assuming a 35% incremental tax rate, an $100 per ounce increase
in gold price would deliver an expected $400 million improvement in
attributable free cash flow. Included within the attributable free
cash flow sensitivity is a royalty and production tax impact of $5
per ounce for every $100 per ounce change in gold price.
2023 OPERATING COSTS BY CATEGORY
Percent of Total*
Change in Cost (-/+)
FCF Impact ($M)
(+/-)
AISC Impact ($/oz)
(-/+)
Labor Costs
50%
5%
$90
$25
Materials & Consumables
30%
5%
$50
$15
Fuel & Energy
15%
5%
$30
$10
*"Other” category of 5% primarily includes
freight, technology-related costs, employee administrative costs,
rents and operating leases.
PRODUCTION AND COST OUTLOOK
Guidance Metric
2023E
2024E
2025E
2026E
2027E
Attributable Gold Production (Moz)
5.7 - 6.3
5.9 - 6.5
5.9 - 6.5
6.1 - 6.7
6.1 - 6.7
Gold CAS ($/oz)*
$870 - $970
$850 - $950
$780 - $880
$750 - $850
$750 - $850
Gold AISC ($/oz)*
$1,150 - $1,250
$1,100 - $1,200
$1,000 - $1,100
$1,000 - $1,100
$1,000 - $1,100
*Consolidated basis
Attributable gold production is expected to be steadily
improving at 5.7 to 6.7 million ounces across the five-year period.
This is supported by a steady base from Newmont's world class
assets and is further enhanced by the Company’s other operating
mines and ownership in the Nevada Gold Mines and Pueblo Viejo joint
ventures. The 2023 outlook of 5.7 to 6.3 million ounces is expected
to remain stable compared to 2022, driven by strong production at
Ahafo and Boddington, partially offset by decreases at Peñasquito
due to planned mine sequencing, the updated mine plan for a
leach-only operation at CC&V and the previously signaled delay
of commercial production at Ahafo North and Tanami Expansion 2 to
2025. Beginning in 2024, production is expected to increase to
between 5.9 and 6.5 million ounces, increasing to between 6.1 to
6.7 million ounces longer-term in 2026, due to natural mine
sequencing and the inclusion of profitable production from Ahafo
North and Tanami Expansion 2, in addition to reaching higher gold
grade at Peñasquito.
Costs are expected to improve throughout the five-year period,
driven by declining inflationary pressure assumptions, increasing
production levels and cost reduction initiatives. 2023 CAS is
expected to be between $870 and $970 per ounce, with approximately
3% in cost escalation assumed as cost pressures are expected to
persist from 2022. Longer-term, CAS is expected to improve to
between $750 and $850 per ounce beginning in 2026 with the benefit
of the near-term projects at Tanami and Ahafo North contributing
profitable production, in addition to an improving cost and
production profile at Nevada Gold Mines. AISC is expected to be
between $1,150 and $1,250 per ounce in 2023, and improve to between
$1,000 and $1,100 per ounce longer-term beginning in 2025.
CO-PRODUCT PRODUCTION AND COST OUTLOOK
Guidance Metric
2023E
2024E
2025E
2026E
2027E
Copper ($3.50/lb price
assumption)
Copper Production (Mlb)
95 - 105
85 - 95
45 - 55
45 - 55
55 - 65
Copper CAS ($/lb)*
$1.85 - $2.15
Copper AISC ($/lb)*
$2.35 - $2.65
Silver ($20/oz price
assumption)
Silver Production (Moz)
31 - 35
32 - 36
35 - 39
28 - 32
30 - 34
Silver CAS ($/oz)*
$11.10 - $12.10
Silver AISC ($/oz)*
$15.50 - $16.50
Lead ($0.90/lb price
assumption)
Lead Production (Mlb)
170 - 190
190 - 210
210 - 230
160 - 180
250 - 270
Lead CAS ($/lb)*
$0.55 - $0.65
Lead AISC ($/lb)*
$0.70 - $0.80
Zinc ($1.35/lb price
assumption)
Zinc Production (Mlb)
420 - 460
550 - 590
580 - 620
460 - 500
400 - 440
Zinc CAS ($/lb)*
$0.65 - $0.75
Zinc AISC ($/lb)*
$1.05 - $1.15
*Consolidated basis
In 2023, Boddington is expected to have the highest copper
production during the five-year period due to higher grades as a
result of mine sequencing. Beginning in 2023 and continuing through
2025, Peñasquito is expected to deliver higher co-product
production due to higher silver, lead and zinc content delivered
from the Chile Colorado pit.
CAPITAL OUTLOOK
Guidance Metric ($M)
2023E
2024E
2025E
2026E
2027E
Sustaining Capital*
$1,000 - $1,200
$1,000 - $1,200
$1,000 - $1,200
$1,000 - $1,200
$1,000 - $1,200
Development Capital*
$1,200 - $1,400
$1,200 - $1,400
$800 - $1,000
$500 - $700
$300 - $500
*Sustaining capital is presented on an
attributable basis; Capital outlook excludes amounts attributable
to the Pueblo Viejo joint venture
Sustaining capital is expected to remain steady at $1 to $1.2
billion per year over the five year period, covering
infrastructure, equipment and ongoing mine development. This
incorporates slightly higher spend as compared to 2022 due to
higher costs driven by inflationary pressures and increased
projected spend on tailings facilities in compliance with the
Global Industry Standard on Tailings Management (GISTM).
Development capital for the five-year outlook includes spend for
Tanami Expansion 2 in Australia, Ahafo North in Ghana, Cerro Negro
District Expansion 1 in Argentina, Pamour at Porcupine in Canada,
as well as development capital related to the Company’s ownership
interest in Nevada Gold Mines including Goldrush. Outlook for 2023
and 2024 includes development capital spend of approximately $300
to $350 million per year related to the Yanacocha Sulfides project
under the assumption that an investment decision would be made in
late 2024; remaining development capital beyond 2024 has been
excluded from longer-term outlook. As previously signaled, Newmont
is critically assessing options for the Yanacocha Sulfides project,
up to and including transitioning Yanacocha operations into full
closure, which may have an impact on expected capital spend
included in outlook for 2023 and 2024.
Development capital estimates exclude contributions to support
Newmont’s 40% interest in the Pueblo Viejo expansion, which is
accounted for as an equity method investment.
EXPLORATION AND ADVANCED PROJECTS OUTLOOK
Guidance Metric ($M)
2023E
Exploration & Advanced Projects
$475 - $525
In 2023, investment in exploration and advanced projects is
expected to increase slightly to between $475 and $525 million to
advance greenfield exploration projects, extend mine life at
existing operations and continue building reserves. We expect to
invest approximately $225 million dollars in exploration expense to
progress our most promising greenfield exploration projects
including Esperance in French Guiana and the Coffee project in the
Yukon. In addition, we expect to invest approximately $275 million
in advanced projects spend, as we continue to advance studies
associated with our robust pipeline of projects, including Galore
Creek and Akyem Underground. Included in our expected advanced
projects spend is approximately $40 million related to our
strategic alliance with Caterpillar Inc.
CONSOLIDATED EXPENSE OUTLOOK
Guidance Metric ($M)
2023E
General & Administrative
$260 - $290
Interest Expense
$200 - $220
Depreciation & Amortization
$2,200 - $2,400
Adjusted Tax Rate a,b
32% - 36%
a The adjusted tax rate excludes certain
items such as tax valuation allowance adjustments.
b Assuming average prices of $1,700 per
ounce for gold, $3.50 per pound for copper, $20.00 per ounce for
silver, $0.90 per pound for lead, and $1.35 per pound for zinc and
achievement of current production, sales and cost estimates, we
estimate our consolidated adjusted effective tax rate related to
continuing operations for 2023 will be between 32%-36%.
The 2023 outlook for general and administrative costs remains
flat at $260 to $290 million. Interest expense is expected to
decrease slightly to between $200 to $220 million from higher
levels of capitalized interest on development capital spend in
2023. Depreciation and amortization remains flat at $2.2 to $2.4
billion, with steady production expected in 2023 compared to 2022.
The adjusted tax rate is increasing to between 32% and 36% due to
higher costs and a lower of $1,700 per ounce gold price assumption,
as compared to the $1,800 per ounce gold price assumption used for
2022 Outlook.
2023 SEASONALITY*
Guidance Metric
FY 2023 Outlook
H1 2023E
H2 2023E
Attributable Gold Production (Moz)
5.7 - 6.3
45%
55%
Newmont Managed Operations Attributable
Gold Production (Koz)
FY 2023 Outlook
Q1 2023E (% of Full
Year)
Peñasquito
330 - 370
28%
Boddington
740 - 820
27%
Ahafo
675 - 745
15%
Tanami
420 - 460
10%
Cerro Negro
315 - 345
22%
Akyem
315 - 345
22%
Porcupine
285 - 315
24%
Éléonore
265 - 295
25%
Yanacocha
255 - 285
22%
Merian
235 - 265
26%
Musselwhite
200 - 220
16%
CC&V
160 - 180
26%
*Estimated 2023 seasonality remains
subject to change and represents management’s expectations of
future production results as of February 23, 2023.
In Q1 2023, we expect to produce approximately 21 percent of
our full year gold guidance, driven by heavy weighting to the
second half of the year at Ahafo and Cerro Negro due to planned
mine sequence. In addition, first quarter production at Tanami was
impacted by record rainfall, resulting in the ceasing of milling
operations for a few weeks in February.
Refer to the 2023 Production and Cost Outlook by Site below for
additional details.
2023 Dividend Payout Range Established Within Dividend
Framework; Declares Fourth Quarter Dividend of $0.40 Per
Share
Newmont today announced that its Board of Directors declared a
dividend of $0.40 per share of common stock for the fourth quarter
of 2022, payable on March 23, 2023 to holders of record at the
close of business on March 9, 2023.
INDUSTRY-LEADING DIVIDEND FRAMEWORK
- Base dividend of $1.00 per share at gold reserve price
assumption of $1,400 per ounce
- Variable component based on $40 million of incremental Free
Cash Flow for every $100 per ounce increase above base gold price
assumption; calibrated in increments of $300 per ounce
- Variable component is assessed annually in alignment with the
business planning cycle, considering the current macroeconomic
environment and the current level of reinvestment in the
business
- Supported by strong and flexible investment grade balance
sheet
- Dividend payouts are reviewed and approved quarterly by
Newmont's Board of Directors
MAINTAINING PREDICTABILITY IN 2023
- Calibrating 2023 dividend at $1,700 per ounce, remaining
conservative in a volatile macroeconomic environment
- In addition, Newmont expects elevated levels of development
capital to advance key projects in 2023 of approximately $400
million above the average annual investment level of $2.5
billion
- As a result, incremental free cash flow at the $1,700 per ounce
gold price assumption is expected to be approximately $800 million
in 2023
- Therefore, Newmont has set the variable, incremental dividend
payout range of $0.40 to $0.80 per share, resulting in a 2023
annualized dividend payout range of $1.40 to $1.80 per share1
“Newmont remains committed to our industry-leading dividend
framework, providing a stable base dividend of $1.00 per share and
the opportunity to return a variable component based on incremental
free cash flow at higher gold prices to shareholders. For 2023,
Newmont has calibrated our dividend payout range to $1.40 to $1.80
per share, with a fourth quarter dividend declared of $0.40 per
share. Two and a half years ago, Newmont was the first in the gold
industry to introduced a structured dividend framework, and with
this dividend declared we will have since returned over $4 billion
to shareholders through dividends, clearly demonstrating our
commitment to providing strong shareholder returns.”
- Tom Palmer, President and Chief Executive Officer
1 Expectations regarding 2023 dividend
levels are forward-looking statements. The dividend framework is
non-binding and an annual dividend level has not been declared by
the Board. The declaration and payment of future quarterly
dividends remains at the discretion of the Board of Directors and
will depend on the Company's financial results, cash flow and cash
requirements, future prospects, and other factors deemed relevant
by the Board. See cautionary statement at the end of this
release.
2023 Production and Cost Outlook by Site
Peñasquito
2023E
Production (oz) / (lb)
CAS ($/unit)
AISC ($/unit)
Gold (Koz)
330 - 370
$840 - $940
$1,110 - $1,210
Silver (Moz)
31 - 35
$11.10 - $12.10
$15.50 - $16.50
Lead (Mlb)
170 - 190
$0.55 - $0.65
$0.70 - $0.80
Zinc (Mlb)
420 - 460
$0.65 - $0.75
$1.05 - $1.15
Peñasquito is expected to deliver lower gold production in 2023
as planned due to lower grade, harder ore mined from the Chile
Colorado pit and continued stripping of the next phases of the
Peñasco and Chile Colorado pits. Due to this planned mine sequence,
gold grade in 2023 is expected to decline approximately 25 percent
from 2022. Notably, 2023 production is expected to be weighted in
the first and third quarters of the year as the operation sequences
processing of Chile Colorado ore. In 2024, gold production is
expected to improve due to mine phasing leading to the processing
of higher grade ore.
Increased co-product production at Peñasquito is expected in
2023 due to higher silver, lead and zinc content delivered from the
Chile Colorado pit.
Gold unit costs at Peñasquito are expected to be impacted by
lower production volumes in 2023, while co-product unit costs are
expected to benefit from higher production volumes.
Boddington
2023E
Production (oz) / (lb)
CAS ($/unit)
AISC ($/unit)
Gold (Koz)
740 - 820
$800 - $900
$960 - $1,060
Copper (Mlb)
95 - 105
$1.85 - $2.15
$2.35 - $2.65
Gold production at Boddington is expected to remain relatively
consistent in 2023 as compared to 2022. Based on mine sequencing,
gold production is expected to decline in 2024 and 2025 due to
lower grade ore and stripping in the South pit.
Increased copper production at Boddington is expected in 2023
due to higher grade and mill throughput.
Gold unit costs at Boddington are expected to remain relatively
consistent in 2023 with 2022 levels, while copper unit costs are
expected to increase slightly due to higher direct costs, with
higher all-in sustaining costs due to higher sustaining capital
spend.
Ahafo
2023E
Production (Koz)
CAS ($/oz)
AISC ($/oz)
Gold
675 - 745
$850 - $950
$1,010 - $1,110
Production at Ahafo is expected to increase in 2023, continuing
through 2024, due to higher grade at the Subika open pit and
increased underground tonnes mined due to the change in the mining
method at Subika Underground. In 2023, gold production is expected
to steadily increase each quarter due to the progression of work at
Subika Underground, resulting in production that is expected to be
approximately 60 percent weighted to the second half of the
year.
Unit costs at Ahafo are expected to improve in 2023 due to
higher production volumes.
Ahafo North will add profitable production beginning in 2025,
with the first full year of production expected in 2026, improving
margins through low-cost production.
Tanami
2023E
Production (Koz)
CAS ($/oz)
AISC ($/oz)
Gold
420 - 460
$770 - $870
$1,130 - $1,230
Tanami production is expected to decrease slightly beginning in
2023 and continuing through 2024 due to lower ore grade from
planned mine sequencing to allow for expansion construction
underground, with higher production beginning in 2025 from the
ramp-up of Tanami Expansion 2.
Notably, in the first quarter of 2023, record rainfall and
associated flooding resulted in the closure of the main access
route for supplies. As a result, milling operations were ceased for
a few weeks in the first quarter. Incorporating the impact of this
delay, production at Tanami is expected to be significantly
weighted to the second half of the year.
Unit costs at Tanami are expected to be impacted by lower
production volumes in 2023 and are expected to benefit from
improved underground efficiencies as the second expansion comes
online in 2025.
Cerro Negro
2023E
Production (Koz)
CAS ($/oz)
AISC ($/oz)
Gold
315 - 345
$850 - $950
$1,060 - $1,160
Cerro Negro production is expected to steadily increase compared
to 2022 and continuing longer-term due to higher throughput and
grade from productivity improvements, as well as added production
from San Marcos in the Marianas district expansion in late 2023.
These improvements are expected to steadily increase each quarter
in 2023, resulting in production weighted approximately 55 percent
to the second half of the year. The first expansion at Cerro Negro
includes the development of the Marianas and Eastern districts,
adding production beginning in 2023.
Cerro Negro unit costs are expected to steadily improve
beginning in 2023 due to higher production volumes.
Akyem
2023E
Production (Koz)
CAS ($/oz)
AISC ($/oz)
Gold
315 - 345
$850 - $950
$1,110 - $1,210
Akyem production is expected to decrease in 2023 as stripping
begins for a new layback to extend mine life, with stripping
expected to peak in 2024.
Akyem unit costs are expected to be impacted by lower production
volumes due to mine sequencing in 2023.
Porcupine
2023E
Production (Koz)
CAS ($/oz)
AISC ($/oz)
Gold
285 - 315
$950 - $1,050
$1,250 - $1,350
Porcupine is expected to benefit from productivity improvements
and slightly higher grades in 2023, as additional opportunities
continue to be identified to extend production from current
operations. The Pamour project is expected to maintain steady
production at Porcupine beyond 2024, with an investment decision
expected in late 2023.
Porcupine unit costs are expected to be impacted slightly by
unfavorable inventory changes in 2023, with higher all-in
sustaining costs due to higher sustaining capital spend.
Éléonore
2023E
Production (Koz)
CAS ($/oz)
AISC ($/oz)
Gold
265 - 295
$960 - $1,060
$1,300 - $1,400
Éléonore is expected to deliver higher production in 2023 due to
higher underground tonnes and throughput from productivity
improvements, with steadily improving production expected
longer-term.
Éléonore unit costs are expected to benefit from higher
production volumes in 2023.
Yanacocha
2023E
Production (Koz)
CAS ($/oz)
AISC ($/oz)
Gold
255 - 285
$1,370 - $1,470
$1,620 - $1,720
Yanacocha continues to deliver leach-only production, with
increased production expected in 2023 compared to 2022 due to
higher leach recoveries from the use of injection leaching.
Production is expected to remain relatively steady from 2023
through 2025, until production volumes begin to decline in
2026.
Costs are expected to be highest at Yanacocha in 2023 across the
five-year period due to unfavorable write-downs and inventory
changes.
Merian
2023E
Production (Koz)
CAS ($/oz)
AISC ($/oz)
Gold
235 - 265
$980 - $1,080
$1,230 - $1,330
Merian is expected to deliver slightly lower production
beginning in 2023 and into 2025 due to mine sequencing as the next
phase of stripping in the Merian pit begins and the site continues
to mine harder, lower grade ore.
Merian unit costs are expected to be impacted by lower
production volumes due to mine sequencing.
Musselwhite
2023E
Production (Koz)
CAS ($/oz)
AISC ($/oz)
Gold
200 - 220
$860 - $960
$1,290 - $1,390
Musselwhite is expected to deliver steadily improving production
in 2023 and longer-term, driven by productivity improvements and
accessing higher grade in the PQ Deeps.
Musselwhite unit costs are expected to steadily improve in 2023
with higher production volumes.
CC&V
2023E
Production (Koz)
CAS ($/oz)
AISC ($/oz)
Gold
160 - 180
$1,150 - $1,250
$1,580 - $1,680
CC&V is expected to deliver slightly lower production
through 2024 due to stripping of a resource layback, resulting in
lower ounces recovered from leach-only operations.
In 2023, CC&V unit costs are expected to remain largely in
line with 2022.
Nevada Gold Mines (NGM)
2023E
Production (Koz)
CAS ($/oz)
AISC ($/oz)
Gold
1,190 - 1,310
$850 - $950
$1,150 - $1,250
Production, CAS and AISC for the Company’s 38.5 percent
ownership interest in NGM as provided by Barrick Gold
Corporation.
Pueblo Viejo
2023E
Production (Koz)
Gold
315 - 345
Attributable production reflects Newmont’s 40% interest in
Pueblo Viejo, which is accounted for as an equity method
investment.
2023 Site Outlooka
2023 Outlook
Consolidated Production
(Koz)
Attributable Production
(Koz)
Consolidated CAS
($/oz)
Consolidated All-In
Sustaining Costs b ($/oz)
Attributable Sustaining
Capital Expenditures ($M)
Attributable Development
Capital Expenditures ($M)
CC&V
160 - 180
160 - 180
1,150 - 1,250
1,580 - 1,680
25 - 35
—
Éléonore
265 - 295
265 - 295
960 - 1,060
1,300 - 1.400
55 - 65
—
Peñasquito
330 - 370
330 - 370
840 - 940
1,110 - 1,210
135 - 145
—
Porcupine
285 - 315
285 - 315
950 - 1,050
1,250 - 1,350
45 - 55
100 - 120
Musselwhite
200 - 220
200 - 220
860 - 960
1,290 - 1,390
65 - 75
—
Cerro Negro
315 - 345
315 - 345
850 - 950
1,060 - 1,160
45 - 55
110 - 130
Yanacocha
255 - 285
255 - 285
1,370 - 1,470
1,620 - 1,720
25 - 35
320 - 360
Merianc
315 - 345
235 - 265
980 - 1,080
1,230 - 1,330
35 - 45
—
Boddington
740 - 820
740 - 820
800 - 900
960 - 1,060
95 - 105
—
Tanami
420 - 460
420 - 460
770 - 870
1,130 - 1,230
115 - 125
340 - 380
Ahafo
675 - 745
675 - 745
850 - 950
1,010 - 1,110
75 - 85
5 - 15
Akyem
315 - 345
315 - 345
850 - 950
1,110 - 1,210
25 - 35
—
Ahafo North
—
—
—
—
—
245 - 275
Nevada Gold Minesd
1,190 - 1,310
1,190 - 1,310
850 - 950
1,150 - 1,250
250 - 350
50 - 150
Pueblo Viejoe
—
315 - 345
—
—
—
—
Peñasquito - Silver (Moz)
31 - 35
31 - 35
11.10 - 12.10
15.50 - 16.50
Peñasquito - Lead (Mlbs)
170 - 190
170 - 190
0.55 - 0.65
0.70 - 0.80
Peñasquito - Zinc (Mlbs)
420 - 460
420 - 460
0.65 - 0.75
1.05 - 1.15
Boddington - Copper (Mlbs)
95 - 105
95 - 105
1.85 - 2.15
2.35 - 2.65
a 2023 outlook projections are considered
forward-looking statements and represent management’s good faith
estimates or expectations of future production results as of
February 23, 2023. Outlook is based upon certain assumptions,
including, but not limited to, metal prices, oil prices, certain
exchange rates and other assumptions. For example, 2023 Outlook
assumes $1,700/oz Au, $3.50/lb Cu, $20.00/oz Ag, $1.35/lb Zn,
$0.90/lb Pb, $0.70 USD/AUD exchange rate, $0.77 USD/CAD exchange
rate and $90/barrel WTI. Production, CAS, AISC and capital
estimates exclude projects that have not yet been approved, except
for Yanacocha Sulfides, Pamour and Cerro Negro District Expansion 1
which are included in Outlook. The potential impact on inventory
valuation as a result of lower prices, input costs, and project
decisions are not included as part of this Outlook. Assumptions
used for purposes of Outlook may prove to be incorrect and actual
results may differ from those anticipated, including variation
beyond a +/-5% range. Outlook cannot be guaranteed. As such,
investors are cautioned not to place undue reliance upon Outlook
and forward-looking statements as there can be no assurance that
the plans, assumptions or expectations upon which they are placed
will occur. Amounts may not recalculate to totals due to rounding.
See cautionary at the end of this release.
b All-in sustaining costs (AISC) as used
in the Company’s Outlook is a non-GAAP metric; see below for
further information and reconciliation to consolidated 2023 CAS
outlook.
c Consolidated production for Merian is
presented on a total production basis for the mine site;
attributable production represents a 75% interest for Merian.
d Represents the ownership interest in the
Nevada Gold Mines (NGM) joint venture. NGM is owned 38.5% by
Newmont and owned 61.5% and operated by Barrick. The Company
accounts for its interest in NGM using the proportionate
consolidation method, thereby recognizing its pro-rata share of the
assets, liabilities and operations of NGM.
e Attributable production includes
Newmont’s 40% interest in Pueblo Viejo, which is accounted for as
an equity method investment.
Three Months Ended December
31,
Year Ended December
31,
Operating Results
2022
2021
% Change
2022
2021
% Change
Attributable Sales (koz)
Attributable gold ounces sold (1)
1,581
1,559
1
%
5,696
5,660
1
%
Attributable gold equivalent ounces
sold
311
328
(5
)%
1,275
1,258
1
%
Average Realized Price ($/oz,
$/lb)
Average realized gold price
$
1,758
$
1,798
(2
)%
$
1,792
$
1,788
—
%
Average realized copper price
$
4.12
$
4.54
(9
)%
$
3.69
$
4.29
(14
)%
Average realized silver price
$
20.42
$
19.82
3
%
$
18.45
$
20.19
(9
)%
Average realized lead price
$
0.87
$
1.11
(22
)%
$
0.91
$
1.00
(9
)%
Average realized zinc price
$
1.12
$
1.54
(27
) %
$
1.34
$
1.30
3
%
Attributable Production (koz)
North America
387
404
(4
)%
1,416
1,598
(11
)%
South America
217
182
19
%
810
733
11
%
Australia
338
339
—
%
1,282
1,181
9
%
Africa
299
245
22
%
994
862
15
%
Nevada
324
377
(14
)%
1,169
1,272
(8
)%
Total Gold (excluding equity method
investments)
1,565
1,547
1
%
5,671
5,646
—
%
Pueblo Viejo (40%) (2)
65
71
(8
)%
285
325
(12
)%
Total Gold
1,630
1,618
1
%
5,956
5,971
—
%
North America
229
269
(15
)%
1,048
1,089
(4
)%
Australia
67
48
40
%
227
163
39
%
Total Gold Equivalent Ounces
296
317
(7
)%
1,275
1,252
2
%
CAS Consolidated ($/oz, $/GEO)
North America
$
921
$
883
4
%
$
999
$
796
26
%
South America
$
1,098
$
860
28
%
$
1,034
$
832
24
%
Australia
$
797
$
724
10
%
$
755
$
755
—
%
Africa
$
994
$
786
26
%
$
911
$
799
14
%
Nevada
$
934
$
753
24
%
$
989
$
755
31
%
Total Gold
$
940
$
802
17
%
$
933
$
785
19
%
Total Gold (by-product)
$
876
$
657
33
%
$
855
$
637
34
%
North America
$
866
$
717
21
%
$
828
$
603
37
%
Australia
$
823
$
874
(6
) %
$
782
$
902
(13
)%
Total Gold Equivalent Ounces
$
857
$
739
16
%
$
819
$
640
28
%
AISC Consolidated ($/oz, $/GEO)
North America
$
1,213
$
1,100
10
%
$
1,287
$
1,016
27
%
South America
$
1,318
$
1,158
14
%
$
1,262
$
1,130
12
%
Australia
$
986
$
904
9
%
$
950
$
1,002
(5
)%
Africa
$
1,203
$
1,020
18
%
$
1,108
$
1,022
8
%
Nevada
$
1,186
$
887
34
%
$
1,220
$
918
33
%
Total Gold
$
1,215
$
1,056
15
%
$
1,211
$
1,062
14
%
Total Gold (by-product)
$
1,211
$
965
25
%
$
1,198
$
969
24
%
North America
$
1,181
$
955
24
%
$
1,115
$
824
35
%
Australia
$
954
$
1,009
(5
)%
$
909
$
1,098
(17
)%
Total Gold Equivalent Ounces
$
1,166
$
1,007
16
%
$
1,114
$
900
24
%
(1)
Attributable gold ounces from the Pueblo
Viejo mine, an equity method investment, are not included in
attributable gold ounces sold.
(2)
Represents attributable gold from Pueblo
Viejo and does not include the Company's other equity method
investments. Attributable gold ounces produced at Pueblo Viejo are
not included in attributable gold ounces sold, as noted in footnote
(1). Income and expenses of equity method investments are included
in Equity income (loss) of affiliates.
NEWMONT CORPORATION
CONSOLIDATED STATEMENTS OF
OPERATIONS
Three Months Ended December
31,
Year Ended December
31,
2022
2021
2022
2021
(in millions, except per
share)
Sales
$
3,200
$
3,390
$
11,915
$
12,222
Costs and expenses
Costs applicable to sales (1)
1,780
1,540
6,468
5,435
Depreciation and amortization
571
639
2,185
2,323
Reclamation and remediation
758
1,626
921
1,846
Exploration
62
62
231
209
Advanced projects, research and
development
60
46
229
154
General and administrative
66
69
276
259
Impairment charges
1,317
7
1,320
25
Loss on assets held for sale
—
—
—
571
Other expense, net
17
27
82
143
4,631
4,016
11,712
10,965
Other income (expense):
Gain on asset and investment sales,
net
61
166
35
212
Other income (loss), net
40
19
(62
)
(87
)
Interest expense, net of capitalized
interest of $21, $11, $69, and $38, respectively
(53
)
(66
)
(227
)
(274
)
48
119
(254
)
(149
)
Income (loss) before income and mining tax
and other items
(1,383
)
(507
)
(51
)
1,108
Income and mining tax benefit
(expense)
(112
)
(300
)
(455
)
(1,098
)
Equity income (loss) of affiliates
26
28
107
166
Net income (loss) from continuing
operations
(1,469
)
(779
)
(399
)
176
Net income (loss) from discontinued
operations
11
15
30
57
Net income (loss)
(1,458
)
(764
)
(369
)
233
Net loss (income) attributable to
noncontrolling interests
(19
)
718
(60
)
933
Net income (loss) attributable to Newmont
stockholders
$
(1,477
)
$
(46
)
$
(429
)
$
1,166
Net income (loss) attributable to Newmont
stockholders:
Continuing operations
$
(1,488
)
$
(61
)
$
(459
)
$
1,109
Discontinued operations
11
15
30
57
$
(1,477
)
$
(46
)
$
(429
)
$
1,166
Weighted average common shares
(millions):
Basic
794
795
794
799
Effect of employee stock-based awards
1
2
1
2
Diluted
795
797
795
801
Net income (loss) per common share
Basic:
Continuing operations
$
(1.87
)
$
(0.08
)
$
(0.58
)
$
1.39
Discontinued operations
0.01
0.02
0.04
0.07
$
(1.86
)
$
(0.06
)
$
(0.54
)
$
1.46
Diluted: (2)
Continuing operations
$
(1.87
)
$
(0.08
)
$
(0.58
)
$
1.39
Discontinued operations
0.01
0.02
0.04
0.07
$
(1.86
)
$
(0.06
)
$
(0.54
)
$
1.46
(1)
Excludes Depreciation and amortization and
Reclamation and remediation.
(2)
For the quarters ended December 31, 2022
and 2021 and the year ended December 31, 2022, potentially dilutive
shares were excluded in the computation of diluted loss per common
share attributable to Newmont stockholders as they were
antidilutive.
NEWMONT CORPORATION
CONSOLIDATED BALANCE
SHEETS
At December 31, 2022
At December 31, 2021
(in millions)
ASSETS
Cash and cash equivalents
$
2,877
$
4,992
Time deposits and other investments
880
82
Trade receivables
366
337
Inventories
979
930
Stockpiles and ore on leach pads
774
857
Other current assets
639
498
Current assets
6,515
7,696
Property, plant and mine development,
net
24,073
24,124
Investments
3,278
3,243
Stockpiles and ore on leach pads
1,716
1,775
Deferred income tax assets
173
269
Goodwill
1,971
2,771
Other non-current assets
756
686
Total assets
$
38,482
$
40,564
LIABILITIES
Accounts payable
$
633
$
518
Employee-related benefits
399
386
Income and mining taxes
199
384
Current lease and other financing
obligations
96
106
Debt
—
87
Other current liabilities
1,599
1,173
Current liabilities
2,926
2,654
Debt
5,571
5,565
Lease and other financing obligations
465
544
Reclamation and remediation
liabilities
6,578
5,839
Deferred income tax liabilities
1,809
2,144
Employee-related benefits
342
439
Silver streaming agreement
828
910
Other non-current liabilities
430
608
Total liabilities
18,949
18,703
Contingently redeemable noncontrolling
interest
—
48
Commitments and contingencies(1)
EQUITY
Common stock - $1.60 par value;
1,279
1,276
Authorized - 1,280 million and 1,280
million shares, respectively
Outstanding shares - 793 million and 792
million shares, respectively
Treasury stock - 6 million and 5 million
shares, respectively
(239
)
(200
)
Additional paid-in capital
17,369
17,981
Accumulated other comprehensive income
(loss)
29
(133
)
Retained earnings
916
3,098
Newmont stockholders' equity
19,354
22,022
Noncontrolling interests
179
(209
)
Total equity
19,533
21,813
Total liabilities and equity
$
38,482
$
40,564
(1)
Refer to Note 25 of the Consolidated
Financial Statements for additional information.
NEWMONT CORPORATION
CONSOLIDATED STATEMENTS OF
CASH FLOWS
Three Months Ended December
31,
Year Ended December
31,
2022
2021
2022
2021
(in millions)
Operating activities:
Net income (loss)
$
(1,458
)
$
(764
)
$
(369
)
$
233
Adjustments:
Depreciation and amortization
571
639
2,185
2,323
Impairment charges
1,317
7
1,320
25
Loss on assets held for sale
—
—
—
571
Gain on asset and investment sales,
net
(61
)
(166
)
(35
)
(212
)
Net loss (income) from discontinued
operations
(11
)
(15
)
(30
)
(57
)
Reclamation and remediation
743
1,619
892
1,827
Charges from pension settlement
7
4
137
4
Stock-based compensation
16
17
73
72
Deferred income taxes
(133
)
(99
)
(278
)
(109
)
Change in fair value of investments
(45
)
(45
)
46
135
Other non-cash adjustments
93
65
98
(5
)
Net change in operating assets and
liabilities
(29
)
37
(841
)
(541
)
Net cash provided by (used in) operating
activities of continuing operations
1,010
1,299
3,198
4,266
Net cash provided by (used in) operating
activities of discontinued operations
—
—
22
13
Net cash provided by (used in) operating
activities
1,010
1,299
3,220
4,279
Investing activities:
Additions to property, plant and mine
development
(646
)
(441
)
(2,131
)
(1,653
)
Purchases of investments
(275
)
(41
)
(940
)
(59
)
Contributions to equity method
investees
(42
)
(36
)
(194
)
(150
)
Proceeds from sales of investments
127
87
171
194
Maturities of investments
93
—
93
—
Return of investment from equity method
investees
10
—
62
18
Acquisitions, net (1)
—
—
(15
)
(328
)
Proceeds from sales of mining operations
and other assets, net
3
80
16
84
Other
4
—
(45
)
26
Net cash provided by (used in) investing
activities of continuing operations
(726
)
(351
)
(2,983
)
(1,868
)
Net cash provided by (used in) investing
activities of discontinued operations
—
—
—
—
Net cash provided by (used in) investing
activities
(726
)
(351
)
(2,983
)
(1,868
)
Financing activities:
Dividends paid to common stockholders
(436
)
(436
)
(1,746
)
(1,757
)
Acquisition of noncontrolling
interests
—
—
(348
)
—
Distributions to noncontrolling
interests
(51
)
(45
)
(191
)
(200
)
Funding from noncontrolling interests
28
27
117
100
Repayment of debt
—
(832
)
(89
)
(1,382
)
Payments on lease and other financing
obligations
(16
)
(19
)
(66
)
(73
)
Payments for withholding of employee taxes
related to stock-based compensation
(1
)
(1
)
(39
)
(32
)
Proceeds from issuance of debt, net
—
992
—
992
Repurchases of common stock
—
(277
)
—
(525
)
Other
(3
)
(4
)
6
(81
)
Net cash provided by (used in) financing
activities
(479
)
(595
)
(2,356
)
(2,958
)
Effect of exchange rate changes on cash,
cash equivalents and restricted cash
(1
)
(5
)
(30
)
(8
)
Net change in cash, cash equivalents and
restricted cash
(196
)
348
(2,149
)
(555
)
Cash, cash equivalents and restricted cash
at beginning of period
3,140
4,745
5,093
5,648
Cash, cash equivalents and restricted cash
at end of period
$
2,944
$
5,093
$
2,944
$
5,093
(1)
Acquisitions, net for the year ended
December 31, 2021 is primarily related to the asset acquisition of
the remaining 85.1% of GT Gold Corporation (“GT Gold”). Refer to
Note 1 of the Consolidated Financial Statements for additional
information.
Three Months Ended December
31,
Year Ended December
31,
2022
2021
2022
2021
(in millions)
Reconciliation of cash, cash equivalents
and restricted cash:
Cash and cash equivalents
$
2,877
$
4,992
$
2,877
$
4,992
Restricted cash included in Other current
assets
1
2
1
2
Restricted cash included in Other
non-current assets
66
99
66
99
Total cash, cash equivalents and
restricted cash
$
2,944
$
5,093
$
2,944
$
5,093
Non-GAAP Financial Measures
Non-GAAP financial measures are intended to provide additional
information only and do not have any standard meaning prescribed by
GAAP. These measures should not be considered in isolation or as a
substitute for measures of performance prepared in accordance with
GAAP. Unless otherwise noted, we present the Non-GAAP financial
measures of our continuing operations in the tables below. For
additional information regarding our discontinued operations, refer
to Note 1 to the Consolidated Financial Statements.
Adjusted net income (loss)
Management uses Adjusted Net Income (Loss) to evaluate the
Company’s operating performance and for planning and forecasting
future business operations. The Company believes the use of
Adjusted Net Income (Loss) allows investors and analysts to
understand the results of the continuing operations of the Company
and its direct and indirect subsidiaries relating to the sale of
products, by excluding certain items that have a disproportionate
impact on our results for a particular period. Adjustments to
continuing operations are presented before tax and net of our
partners’ noncontrolling interests, when applicable. The tax effect
of adjustments is presented in the Tax effect of adjustments line
and is calculated using the applicable regional tax rate.
Management’s determination of the components of Adjusted Net Income
(Loss) are evaluated periodically and based, in part, on a review
of non-GAAP financial measures used by mining industry analysts.
Net income (loss) attributable to Newmont stockholders is
reconciled to Adjusted net income (loss) as follows:
Three Months Ended
December 31, 2022
Year Ended December 31,
2022
per share data (1)
per share data (1)
basic
diluted
basic
diluted
Net income (loss) attributable to Newmont
stockholders
$
(1,477
)
$
(1.86
)
$
(1.86
)
$
(429
)
$
(0.54
)
$
(0.54
)
Net loss (income) attributable to Newmont
stockholders from discontinued operations (2)
(11
)
(0.01
)
(0.01
)
(30
)
(0.04
)
(0.04
)
Net income (loss) attributable to Newmont
stockholders from continuing operations (3)
(1,488
)
(1.87
)
(1.87
)
(459
)
(0.58
)
(0.58
)
Impairment charges (4)
1,317
1.66
1.66
1,320
1.66
1.66
Reclamation and remediation charges
(5)
700
0.88
0.88
713
0.90
0.90
Pension settlements (6)
7
0.01
0.01
137
0.17
0.17
Change in fair value of investments
(7)
(45
)
(0.06
)
(0.06
)
46
0.06
0.06
Gain on asset and investment sales (8)
(61
)
(0.08
)
(0.08
)
(35
)
(0.04
)
(0.04
)
Settlement costs (9)
2
—
—
22
0.03
0.03
Restructuring and severance (10)
1
—
—
4
0.01
0.01
COVID-19 specific costs (11)
2
—
—
3
—
—
Other (12)
(3
)
—
—
(21
)
(0.03
)
(0.03
)
Tax effect of adjustments (13)
(283
)
(0.35
)
(0.35
)
(344
)
(0.44
)
(0.44
)
Valuation allowance and other tax
adjustments, net (14)
199
0.25
0.25
82
0.11
0.11
Adjusted net income (loss)
$
348
$
0.44
$
0.44
$
1,468
$
1.85
$
1.85
Weighted average common shares (millions):
(3)
794
795
794
795
(1)
Per share measures may not recalculate due
to rounding.
(2)
For additional information regarding our
discontinued operations, see Note 1 to our Consolidated Financial
Statements.
(3)
Adjusted net income (loss) per diluted
share is calculated using diluted common shares, which are
calculated in accordance with U.S. GAAP. For the year ended
December 31, 2022, potentially dilutive shares of 1 million were
excluded from the computation of diluted loss per common share
attributable to Newmont stockholders in the Consolidated Statement
of Operations as they were antidilutive. These shares were included
in the computation of adjusted net income per diluted share for the
year ended December 31, 2022.
(4)
Impairment charges, included in Impairment
charges represents non-cash write-downs of long-lived assets and
goodwill.
(5)
Reclamation and remediation charges, net,
included in Reclamation and remediation, represent revisions to the
reclamation and remediation plans and cost estimates at the
Company’s former operating properties and historic mining
operations that have entered the closure phase and have no
substantive future economic value.
(6)
Pension settlements, included in Other
income (loss), net, represents pension settlement charges related
to the annuitization of certain defined benefit plans.
(7)
Change in fair value of investments,
included in Other income (loss), net, primarily represents
unrealized gains and losses related to the Company's investment in
current and non-current marketable and other equity securities.
(8)
Gain on asset and investment sales,
included in Gain on asset and investment sales, net, primarily
represents gains recognized on the sale of the investment in MARA,
the disposal of trucks at Boddington and the sale of a royalty at
NGM, partially offset by the loss recognized on the sale of the La
Zanja equity method investment for the year ended 2022.
(9)
Settlement costs, included in Other
expense, net, primarily represents a legal settlement and a
voluntary contribution made to support humanitarian efforts in
Ukraine.
(10)
Restructuring and severance, net, included
in Other expense, net, primarily represents severance and related
costs associated with significant organizational or operating model
changes implemented by the Company.
(11)
COVID-19 specific costs, included in Other
expense, net, represents amounts distributed from the Newmont
Global Community Fund to help host communities, governments and
employees combat the COVID-19 pandemic. Adjusted net income (loss)
has not been adjusted for $2 and $35, respectively, of incremental
COVID-19 costs incurred as a result of actions taken to protect
against the impacts of the COVID-19 pandemic at our operational
sites.
(12)
Primarily represents for the year ended,
an $11 reimbursement of certain historical Goldcorp operational
expenses related to a legacy project that reached commercial
production in the second quarter of 2022 and $7 of penalty income
from an energy vendor early terminating a contract in 2022,
included Other income (loss), net.
(13)
The tax effect of adjustments, included in
Income and mining tax benefit (expense), represents the tax effect
of adjustments in footnotes (4) through (12), as described above,
and are calculated using the applicable regional tax rate.
(14)
Valuation allowance and other tax
adjustments, net, included in Income and mining tax benefit
(expense), is recorded for items such as foreign tax credits,
alternative minimum tax credits, capital losses, disallowed foreign
losses, and the effects of changes in foreign currency exchange
rates on deferred tax assets and deferred tax liabilities. The
adjustment for the three months and the year ended December 31,
2022, reflects the net increase or (decrease) to net operating
losses, capital losses, tax credit carryovers, and other deferred
tax assets subject to valuation allowance of $178 and $246,
respectively, the expiration of U.S. foreign tax credit carryovers
of $31 and $31, respectively, the effects of changes in foreign
exchange rates on deferred tax assets and liabilities of $(38) and
$(86), respectively, net removal to the reserve for uncertain tax
positions of $5 and $(8), respectively, a tax settlement in Mexico
of $— and $(125), respectively, and other tax adjustments of $23
and $24, respectively. Total amount is presented net of income
(loss) attributable to noncontrolling interests of $199 and $82,
respectively.
Three Months Ended
December 31, 2021
Year Ended December 31,
2021
per share data (1)
per share data (1)
basic
diluted
basic
diluted
Net income (loss) attributable to Newmont
stockholders
$
(46
)
$
(0.06
)
$
(0.06
)
$
1,166
$
1.46
$
1.46
Net loss (income) attributable to Newmont
stockholders from discontinued operations (2)
(15
)
(0.02
)
(0.02
)
(57
)
(0.07
)
(0.07
)
Net income (loss) attributable to Newmont
stockholders from continuing operations
(61
)
(0.08
)
(0.08
)
1,109
1.39
1.39
Reclamation and remediation charges, net
(3)
874
1.10
1.10
983
1.23
1.23
Loss on assets held for sale, net (4)
—
—
—
372
0.47
0.46
Gain on asset and investment sales (5)
(166
)
(0.21
)
(0.21
)
(212
)
(0.27
)
(0.27
)
Change in fair value of investments
(6)
(45
)
(0.05
)
(0.05
)
135
0.17
0.17
Impairment charges (7)
7
0.01
0.01
25
0.03
0.03
Loss on debt extinguishment (8)
11
0.01
0.01
11
0.01
0.01
Settlement costs (9)
—
—
—
11
0.01
0.01
Restructuring and severance, net (10)
—
—
—
9
0.01
0.01
COVID-19 specific costs (11)
2
—
—
5
—
—
Pension settlement (12)
4
—
—
4
—
—
Impairment of investments (13)
—
—
—
1
—
—
Tax effect of adjustments (14)
(216
)
(0.27
)
(0.27
)
(413
)
(0.51
)
(0.51
)
Valuation allowance and other tax
adjustments, net (15)
214
0.27
0.27
331
0.43
0.43
Adjusted net income (loss) (16)
$
624
$
0.78
$
0.78
$
2,371
$
2.97
$
2.96
Weighted average common shares (millions):
(17)
795
797
799
801
(1)
Per share measures may not recalculate due
to rounding.
(2)
For additional information regarding our
discontinued operations, see Note 1 to our Consolidated Financial
Statements.
(3)
Reclamation and remediation charges, net,
included in Reclamation and remediation, represent revisions to the
reclamation and remediation plans and cost estimates at the
Company’s former operating properties and historic mining
operations that have entered the closure phase and have no
substantive future economic value. Amounts are presented pre-tax
net of income (loss) attributable to noncontrolling interests of
$(713) and $(713), respectively.
(4)
Loss on assets held for sale, net,
included in Loss on assets held for sale, represents the loss
recognized due to the reclassification of the Conga mill assets as
held for sale during the third quarter of 2021. The assets were
remeasured to fair value less costs to sell. Amounts are presented
net of income (loss) attributable to noncontrolling interests of $—
and $(199), respectively.
(5)
Gain on asset and investment sales,
included in Gain on asset and investment sales, net, primarily
represents the gain on the sale of the Kalgoorlie Power business,
gain on the NGM Lone Tree and South Arturo exchange, and gain on
the sale of TMAC.
(6)
Change in fair value of investments,
included in Other income (loss), net, primarily represents
unrealized gains and losses related to the Company's investment in
current and non-current marketable and other equity securities.
(7)
Impairment charges, included in Impairment
charges, represents non-cash write-downs of various assets that are
no longer in use and materials and supplies inventories.
(8)
Loss on debt extinguishment, included in
Other income (loss), net, primarily represents losses on the debt
tender offer and subsequent extinguishment of the 2023 Newmont
Senior Notes and the 2023 Goldcorp Senior Notes.
(9)
Settlement costs, included in Other
expense, net, primarily are comprised of a voluntary contribution
made to the Republic of Suriname.
(10)
Restructuring and severance, net, included
in Other expense, net, primarily represents severance and related
costs associated with significant organizational or operating model
changes implemented by the Company. Amounts are presented net of
income (loss) attributable to noncontrolling interests of $(1) and
$(2), respectively.
(11)
COVID-19 specific costs, included in Other
expense, net, represents incremental direct costs incurred as a
result of actions taken to protect against the impacts of the
COVID-19 pandemic and primarily include amounts distributed from
the Newmont Global Community Fund to help host communities,
governments and employees combat the COVID-19 pandemic. Adjusted
net income (loss) has not been adjusted for $19 and $82 of
incremental COVID-19 costs incurred as a result of actions taken to
protect against the impacts of the COVID-19 pandemic at our
operational sites.
(12)
Pension settlements, included in Other
income (loss), net, represents pension settlement charges due to
lump sum payments to participants.
(13)
Impairment of investments, included in
Other income (loss), net, primarily represents other-than-temporary
impairment of other investments.
(14)
The tax effect of adjustments, included in
Income and mining tax benefit (expense), represents the tax effect
of adjustments in footnotes (3) through (13), as described above,
and are calculated using the applicable regional tax rate.
(15)
Valuation allowance and other tax
adjustments, net, included in Income and mining tax benefit
(expense), is recorded for items such as foreign tax credits,
alternative minimum tax credits, capital losses, disallowed foreign
losses, and the effects of changes in foreign currency exchange
rates on deferred tax assets and deferred tax liabilities. The
adjustment is due the net increase or (decrease) to net operating
losses, capital losses, tax credit carryovers and other deferred
tax assets subject to valuation allowance of $204 and $419,
respectively, the expiration of U.S. capital loss carryovers of
$152 and $152, respectively, the effects of changes in foreign
exchange rates on deferred tax assets and liabilities of $10 and
$(17), respectively, net reductions to the reserve for uncertain
tax positions of $78 and $99, respectively and other tax
adjustments of $23 and $5, respectively. Total amounts are
presented net of income (loss) attributable to noncontrolling
interests of $(253) and $(327), respectively.
(16)
Adjusted net income (loss) has not been
adjusted for $— and $8 of cash and $— and $3 of non-cash care and
maintenance costs, included in Other expense, net and Depreciation
and amortization, respectively, which primarily represent costs
associated with certain sites being temporarily placed into care
and maintenance in response to the COVID-19 pandemic during a
portion of the three months and year ended December 31, 2021,
respectively.
(17)
Adjusted net income (loss) per diluted
share is calculated using diluted common shares, which are
calculated in accordance with U.S. GAAP.
Earnings before interest, taxes and depreciation and
amortization and Adjusted earnings before interest, taxes and
depreciation and amortization
Management uses earnings before interest, taxes and depreciation
and amortization (“EBITDA”) and EBITDA adjusted for non-core or
certain items that have a disproportionate impact on our results
for a particular period (“Adjusted EBITDA”) as non-GAAP measures to
evaluate the Company’s operating performance. EBITDA and Adjusted
EBITDA do not represent, and should not be considered an
alternative to, net income (loss), operating income (loss), or cash
flow from operations as those terms are defined by GAAP, and do not
necessarily indicate whether cash flows will be sufficient to fund
cash needs. Although Adjusted EBITDA and similar measures are
frequently used as measures of operations and the ability to meet
debt service requirements by other companies, our calculation of
Adjusted EBITDA is not necessarily comparable to such other
similarly titled captions of other companies. The Company believes
that Adjusted EBITDA provides useful information to investors and
others in understanding and evaluating our operating results in the
same manner as our management and Board of Directors. Management’s
determination of the components of Adjusted EBITDA are evaluated
periodically and based, in part, on a review of non-GAAP financial
measures used by mining industry analysts. Net income (loss)
attributable to Newmont stockholders is reconciled to EBITDA and
Adjusted EBITDA as follows:
Three Months Ended
December 31,
Year Ended December
31,
2022
2021
2022
2021
Net income (loss) attributable to Newmont
stockholders
$
(1,477
)
$
(46
)
$
(429
)
$
1,166
Net income (loss) attributable to
noncontrolling interests
19
(718
)
60
(933
)
Net (income) loss from discontinued
operations (1)
(11
)
(15
)
(30
)
(57
)
Equity loss (income) of affiliates
(26
)
(28
)
(107
)
(166
)
Income and mining tax expense
(benefit)
112
300
455
1,098
Depreciation and amortization
571
639
2,185
2,323
Interest expense, net
53
66
227
274
EBITDA
$
(759
)
$
198
$
2,361
$
3,705
Adjustments:
Impairment charges (2)
$
1,317
$
7
$
1,320
$
25
Reclamation and remediation charges
(3)
700
1,587
713
1,696
Pension settlements (4)
7
4
137
4
Change in fair value of investments
(5)
(45
)
(45
)
46
135
Gain on asset and investment sales (6)
(61
)
(166
)
(35
)
(212
)
Settlement costs (7)
2
—
22
11
Restructuring and severance (8)
1
1
4
11
COVID-19 specific costs (9)
2
2
3
5
Loss on assets held for sale (10)
—
—
—
571
Loss on debt extinguishment (11)
—
11
—
11
Impairment of investments (12)
—
—
—
1
Other (13)
(3
)
—
(21
)
—
Adjusted EBITDA (14)
$
1,161
$
1,599
$
4,550
$
5,963
(1)
For additional information regarding our
discontinued operations, refer to Note 1 to our Consolidated
Financial Statements.
(2)
Impairment charges, included in Impairment
charges represents non-cash write-downs of long-lived assets and
goodwill.
(3)
Reclamation and remediation charges,
included in Reclamation and remediation, represent revisions to the
reclamation and remediation plans and cost estimates at the
Company’s former operating properties and historic mining
operations that have entered the closure phase and have no
substantive future economic value.
(4)
Pension settlements, included in Other
income (loss), net, primarily represents pension settlement charges
related to the annuitization of certain defined benefit plans and
lump sum payments to participants in 2022 and related to lump sum
payments to participants in 2021.
(5)
Change in fair value of investments,
included in Other income (loss), net, primarily represents
unrealized gains and losses related to the Company's investments in
current and non-current marketable and other equity securities.
(6)
Gain on asset and investment sales,
included in Gain on asset and investment sales, net, primarily
represents gains recognized on the sale of the investment in MARA,
the disposal of trucks at Boddington and the sale of a royalty at
NGM, partially offset by the loss recognized on the sale of the La
Zanja equity method investment in 2022; and the gain on the sale of
the Kalgoorlie Power business, gain on the NGM Lone Tree and South
Arturo exchange transaction, and gain on the sale of TMAC in
2021.
(7)
Settlement costs, included in Other
expense, net, primarily represents a legal settlement and a
voluntary contribution made to support humanitarian efforts in
Ukraine in 2022; and a voluntary contribution made to the Republic
of Suriname in 2021.
(8)
Restructuring and severance, included in
Other expense, net, primarily represents severance and related
costs associated with significant organizational and operating
model changes implemented by the Company for all periods
presented.
(9)
COVID-19 specific costs, included in Other
expense, net, primarily includes amounts distributed from Newmont
Global Community Support Fund to help host communities, governments
and employees combat the COVID-19 pandemic.
(10)
Loss on assets held for sale, included in
Loss on assets held for sale, represents the loss recognized due to
the reclassification of the Conga mill assets as held for sale
during 2021. The assets were remeasured to fair value less costs to
sell.
(11)
Loss on debt extinguishment, included in
Other income (loss), net, primarily represents losses on the debt
tender offer and subsequent extinguishment of the 2023 Newmont
Senior Notes and the 2023 Goldcorp Senior Notes during 2021.
(12)
Impairment of investments, included in
Other income (loss), net, represents other-than-temporary
impairment of other investments.
(13)
Primarily represents for the year ended,
an $11 reimbursement of certain historical Goldcorp operational
expenses related to a legacy project that reached commercial
production in the second quarter of 2022 and $7 of penalty income
from an energy vendor early terminating a contract in 2022,
included Other income (loss), net.
(14)
Adjusted EBITDA has not been adjusted for
$—, $—, $—, and $8 of cash care and maintenance costs, included in
Other expense, net, which primarily represent costs incurred
associated with certain mine sites being temporarily placed into
care and maintenance in response to the COVID-19 pandemic for the
three months and years ended December 31, 2022 and 2021,
respectively.
The Company uses NGM EBITDA as a non-GAAP measure to evaluate
the operating performance of its investment in Nevada Gold Mines
(NGM). NGM EBITDA does not represent, and should not be considered
an alternative to, Income (loss) before income and mining tax and
other items, as defined by GAAP, and does not necessarily indicate
whether cash distributions from NGM will match NGM EBITDA. Although
the Company has the ability to exert significant influence and
proportionally consolidates its 38.5% interest in NGM, it does not
have direct control over the operations or resulting revenues and
expenses of its investment in NGM. The Company believes that NGM
EBITDA provides useful information to investors and others in
understanding and evaluating the operating results of its
investment in NGM, in the same manner as management and the Board
of Directors. Income (loss) before income and mining tax and other
items is reconciled to NGM EBITDA as follows:
Three Months Ended December
31,
Year Ended December
31,
2022
2021
2022
2021
Income (Loss) before Income and Mining Tax
and other Items, NGM (1)
$
141
$
319
$
434
$
818
Depreciation and amortization, NGM (1)
110
164
471
550
NGM EBITDA
$
251
$
483
$
905
$
1,368
(1)
See Note 3 to the Consolidated Financial
Statements.
Free Cash Flow
Management uses Free Cash Flow as a non-GAAP measure to analyze
cash flows generated from operations. Free Cash Flow is Net cash
provided by (used in) operating activities less Net cash provided
by (used in) operating activities of discontinued operations less
Additions to property, plant and mine development as presented on
the Consolidated Statements of Cash Flows. The Company believes
Free Cash Flow is also useful as one of the bases for comparing the
Company’s performance with its competitors. Although Free Cash Flow
and similar measures are frequently used as measures of cash flows
generated from operations by other companies, the Company’s
calculation of Free Cash Flow is not necessarily comparable to such
other similarly titled captions of other companies.
The presentation of non-GAAP Free Cash Flow is not meant to be
considered in isolation or as an alternative to net income as an
indicator of the Company’s performance, or as an alternative to
cash flows from operating activities as a measure of liquidity as
those terms are defined by GAAP, and does not necessarily indicate
whether cash flows will be sufficient to fund cash needs. The
Company’s definition of Free Cash Flow is limited in that it does
not represent residual cash flows available for discretionary
expenditures due to the fact that the measure does not deduct the
payments required for debt service and other contractual
obligations or payments made for business acquisitions. Therefore,
the Company believes it is important to view Free Cash Flow as a
measure that provides supplemental information to the Company’s
Consolidated Statements of Cash Flows.
The following table sets forth a reconciliation of Free Cash
Flow, a non-GAAP financial measure, to Net cash provided by (used
in) operating activities, which the Company believes to be the GAAP
financial measure most directly comparable to Free Cash Flow, as
well as information regarding Net cash provided by (used in)
investing activities and Net cash provided by (used in) financing
activities.
Three Months Ended
December 31,
Year Ended December
31,
2022
2021
2022
2021
Net cash provided by (used in) operating
activities
$
1,010
$
1,299
$
3,220
$
4,279
Less: Net cash used in (provided by)
operating activities of discontinued operations
—
—
(22
)
(13
)
Net cash provided by (used in) operating
activities of continuing operations
1,010
1,299
3,198
4,266
Less: Additions to property, plant and
mine development
(646
)
(441
)
(2,131
)
(1,653
)
Free Cash Flow
$
364
$
858
$
1,067
$
2,613
Net cash provided by (used in) investing
activities (1)
$
(726
)
$
(351
)
$
(2,983
)
$
(1,868
)
Net cash provided by (used in) financing
activities
$
(479
)
$
(595
)
$
(2,356
)
$
(2,958
)
(1)
Net cash provided by (used in) investing
activities includes Additions to property, plant and mine
development, which is included in the Company’s computation of Free
Cash Flow.
Attributable Free Cash Flow
Management uses Attributable Free Cash Flow as a non-GAAP
measure to analyze cash flows generated from operations that are
attributable to the Company. Attributable Free Cash Flow is Net
cash provided by (used in) operating activities after deducting net
cash flows from operations attributable to noncontrolling interests
less Net cash provided by (used in) operating activities of
discontinued operations after deducting net cash flows from
discontinued operations attributable to noncontrolling interests
less Additions to property, plant and mine development after
deducting property, plant and mine development attributable to
noncontrolling interests. The Company believes that Attributable
Free Cash Flow is useful as one of the bases for comparing the
Company’s performance with its competitors. Although Attributable
Free Cash Flow and similar measures are frequently used as measures
of cash flows generated from operations by other companies, the
Company’s calculation of Attributable Free Cash Flow is not
necessarily comparable to such other similarly titled captions of
other companies.
The presentation of non-GAAP Attributable Free Cash Flow is not
meant to be considered in isolation or as an alternative to Net
income attributable to Newmont stockholders as an indicator of the
Company’s performance, or as an alternative to Net cash provided by
(used in) operating activities as a measure of liquidity as those
terms are defined by GAAP, and does not necessarily indicate
whether cash flows will be sufficient to fund cash needs. The
Company’s definition of Attributable Free Cash Flow is limited in
that it does not represent residual cash flows available for
discretionary expenditures due to the fact that the measure does
not deduct the payments required for debt service and other
contractual obligations or payments made for business acquisitions.
Therefore, the Company believes it is important to view
Attributable Free Cash Flow as a measure that provides supplemental
information to the Company’s Condensed Consolidated Statements of
Cash Flows.
The following tables set forth a reconciliation of Attributable
Free Cash Flow, a non-GAAP financial measure, to Net cash provided
by (used in) operating activities, which the Company believes to be
the GAAP financial measure most directly comparable to Attributable
Free Cash Flow, as well as information regarding Net cash provided
by (used in) investing activities and Net cash provided by (used
in) financing activities.
Three Months Ended December
31, 2022
Year Ended December 31,
2022
Consolidated
Attributable to noncontrolling
interests (1)
Attributable to Newmont
Stockholders
Consolidated
Attributable to noncontrolling
interests (1)
Attributable to Newmont
Stockholders
Net cash provided by (used in) operating
activities
$
1,010
$
(19
)
$
991
$
3,220
$
(83
)
$
3,137
Less: Net cash used in (provided by)
operating activities of discontinued operations
—
—
—
(22
)
—
(22
)
Net cash provided by (used in) operating
activities of continuing operations
1,010
(19
)
991
3,198
(83
)
3,115
Less: Additions to property, plant and
mine development (2)
(646
)
4
(642
)
(2,131
)
29
(2,102
)
Free Cash Flow
$
364
$
(15
)
$
349
$
1,067
$
(54
)
$
1,013
Net cash provided by (used in) investing
activities (3)
$
(726
)
$
(2,983
)
Net cash provided by (used in) financing
activities
$
(479
)
$
(2,356
)
(1)
Adjustment to eliminate a portion of Net
cash provided by (used in) operating activities, Net cash provided
by (used in) operating activities of discontinued operations and
Additions to property, plant and mine development attributable to
noncontrolling interests, which primarily relates to Merian (25%)
for the three months and year ended December 31, 2022 and Yanacocha
(48.65%) and Merian (25%) for the three months and year ended
December 31, 2021. The Company acquired the remaining interest in
Yanacocha in 2022, resulting in 100% ownership interest at December
31, 2022.
(2)
For the three months and year ended
December 31, 2022, Yanacocha had total consolidated Additions to
property, plant and mine development of $166 and $403,
respectively, on a cash basis. For the three months and year ended
December 31, 2022, Merian had total consolidated Additions to
property, plant and mine development of $19 and $56, respectively,
on a cash basis.
(3)
Net cash provided by (used in) investing
activities includes Additions to property, plant and mine
development, which is included in the Company’s computation of Free
Cash Flow.
Three Months Ended December
31, 2021
Year Ended December 31,
2021
Consolidated
Attributable to noncontrolling
interests (1)
Attributable to Newmont
Stockholders
Consolidated
Attributable to noncontrolling
interests (1)
Attributable to Newmont
Stockholders
Net cash provided by (used in) operating
activities
$
1,299
$
1
$
1,300
$
4,279
$
(91
)
$
4,188
Less: Net cash used in (provided by)
operating activities of discontinued operations
—
—
—
(13
)
—
(13
)
Net cash provided by (used in) operating
activities of continuing operations
1,299
1
1,300
4,266
(91
)
4,175
Less: Additions to property, plant and
mine development (2)
(441
)
36
(405
)
(1,653
)
86
(1,567
)
Free Cash Flow
$
858
$
37
$
895
$
2,613
$
(5
)
$
2,608
Net cash provided by (used in) investing
activities (3)
$
(351
)
$
(1,868
)
Net cash provided by (used in) financing
activities
$
(595
)
$
(2,958
)
(1)
Adjustment to eliminate a portion of Net
cash provided by (used in) operating activities, Net cash provided
by (used in) operating activities of discontinued operations and
Additions to property, plant and mine development attributable to
noncontrolling interests, which relate to Yanacocha (48.65%) and
Merian (25%).
(2)
For the three months and year ended
December 31, 2021, Yanacocha had total consolidated Additions to
property, plant and mine development of $66 and $155, respectively,
on a cash basis. For the three months and year ended December 31,
2021, Merian had total consolidated Additions to property, plant
and mine development of $17 and $48, respectively, on a cash
basis.
(3)
Net cash provided by (used in) investing
activities includes Additions to property, plant and mine
development, which is included in the Company’s computation of Free
Cash Flow.
Net Debt
Management uses Net Debt to measure the Company’s liquidity and
financial position. Net Debt is calculated as Debt and Lease and
other financing obligations less Cash and cash equivalents and time
deposits included in Time deposits and other investments, as
presented on the Consolidated Balance Sheets. Cash and cash
equivalents and time deposits are subtracted from Debt and Lease
and other financing obligations as these are highly liquid,
low-risk investments and could be used to reduce the Company's debt
obligations. The Company believes the use of Net Debt allows
investors and others to evaluate financial flexibility and strength
of the Company's balance sheet. Net Debt is intended to provide
additional information only and does not have any standardized
meaning prescribed by GAAP and should not be considered in
isolation or as a substitute for measures of liquidity prepared in
accordance with GAAP. Other companies may calculate this measure
differently.
The following table sets forth a reconciliation of Net Debt, a
non-GAAP financial measure, to Debt and Lease and other financing
obligations, which the Company believes to be the GAAP financial
measures most directly comparable to Net Debt.
At December 31, 2022
At December 31, 2021
Debt
$
5,571
$
5,652
Lease and other financing obligations
561
650
Less: Cash and cash equivalents
(2,877
)
(4,992
)
Less: Time deposits (1)
(829
)
—
Net debt
$
2,426
$
1,310
(1)
Refer to Note 15 of the Consolidated
Financial Statements for further information.
Costs applicable to sales per ounce/gold equivalent
ounce
Costs applicable to sales per ounce/gold equivalent ounce are
non-GAAP financial measures. These measures are calculated by
dividing the costs applicable to sales of gold and other metals by
gold ounces or gold equivalent ounces sold, respectively. These
measures are calculated for the periods presented on a consolidated
basis. We believe that these measures provide additional
information to management, investors and others that aids in the
understanding of the economics of our operations and performance
compared to other producers and provides investors visibility into
the direct and indirect costs related to production, excluding
depreciation and amortization, on a per ounce/gold equivalent ounce
basis. Costs applicable to sales per ounce/gold equivalent ounce
statistics are intended to provide additional information only and
do not have any standardized meaning prescribed by GAAP and should
not be considered in isolation or as a substitute for measures of
performance prepared in accordance with GAAP. The measures are not
necessarily indicative of operating profit or cash flow from
operations as determined under GAAP. Other companies may calculate
these measures differently.
The following tables reconcile these non-GAAP measures to the
most directly comparable GAAP measures.
Costs applicable to sales per
ounce
Three Months Ended
December 31,
Year Ended December
31,
2022
2021
2022
2021
Costs applicable to sales (1)(2)
$
1,513
$
1,297
$
5,423
$
4,628
Gold sold (thousand ounces)
1,610
1,620
5,812
5,897
Costs applicable to sales per ounce
(3)
$
940
$
802
$
933
$
785
(1)
Includes by-product credits of $34 and
$109 during the three months and year ended December 31, 2022,
respectively, and $33 and $187 during the three months and year
ended December 31, 2021, respectively.
(2)
Excludes Depreciation and amortization and
Reclamation and remediation.
(3)
Per ounce measures may not recalculate due
to rounding.
Costs applicable to sales per gold
equivalent ounce
Three Months Ended
December 31,
Year Ended December
31,
2022
2021
2022
2021
Costs applicable to sales (1)(2)
$
267
$
243
$
1,045
$
807
Gold equivalent ounces - other metals sold
(thousand ounces) (3)
311
328
1,275
1,258
Costs applicable to sales per ounce
(4)
$
857
$
739
$
819
$
640
(1)
Includes by-product credits of $2 and $8
during the three months and year ended December 31, 2022,
respectively, and $2 and $7 during the three months and year ended
December 31, 2021, respectively.
(2)
Excludes Depreciation and amortization and
Reclamation and remediation.
(3)
Gold equivalent ounces is calculated as
pounds or ounces produced multiplied by the ratio of the other
metals price to the gold price, using Gold ($1,200/oz.), Copper
($3.25/lb.), Silver ($23.00/oz.), Lead ($0.95/lb.) and Zinc
($1.15/lb.) pricing for 2022 and Gold ($1,200/oz.), Copper
($2.75/lb.), Silver ($22.00/oz.), Lead ($0.90/lb.) and Zinc
($1.05/lb.) pricing for 2021.
(4)
Per ounce measures may not recalculate due
to rounding.
Costs applicable to sales per ounce for
Nevada Gold Mines (NGM)
Three Months Ended
December 31,
Year Ended December
31,
2022
2021
2022
2021
Cost applicable to sales, NGM (1)(2)
$
300
$
286
$
1,153
$
960
Gold sold (thousand ounces), NGM
320
381
1,165
1,274
Costs applicable to sales per ounce, NGM
(3)
$
934
$
753
$
989
$
755
(1)
See Note 3 to the Consolidated Financial
Statements.
(2)
Excludes Depreciation and amortization and
Reclamation and remediation.
(3)
Per ounce measures may not recalculate due
to rounding.
All-In Sustaining Costs
Current GAAP measures used in the mining industry, such as cost
of goods sold, do not capture all of the expenditures incurred to
discover, develop and sustain production. Therefore, Newmont
calculates All-In Sustaining Costs (“AISC”) based on the definition
published by the World Gold Council. The World Gold Council is a
market development organization for the gold industry comprised of
and funded by gold mining companies around the world and a
regulatory organization.
AISC is a metric that expands on GAAP measures, such as cost of
goods sold, and non-GAAP measures, such as costs applicable to
sales per ounce, to provide visibility into the economics of our
mining operations related to expenditures, operating performance
and the ability to generate cash flow from our continuing
operations. We believe that AISC is a non-GAAP measure that
provides additional information to management, investors and others
that aids in the understanding of the economics of our operations
and performance compared to other producers and provides investors
visibility by better defining the total costs associated with
production.
AISC amounts are intended to provide additional information only
and do not have any standardized meaning prescribed by GAAP and
should not be considered in isolation or as a substitute for
measures of performance prepared in accordance with GAAP. The
measures are not necessarily indicative of operating profit or cash
flow from operations as determined under GAAP. Other companies may
calculate these measures differently as a result of differences in
the underlying accounting principles, policies applied and in
accounting frameworks such as in IFRS, or by reflecting the benefit
from selling non-gold metals as a reduction to AISC. Differences
may also arise related to definitional differences of sustaining
versus development (i.e. non-sustaining) activities based upon each
company’s internal policies.
The following disclosure provides information regarding the
adjustments made in determining the All-In Sustaining Costs
measure:
Costs applicable to sales. Includes all direct and indirect
costs related to current production incurred to execute the current
mine plan. We exclude certain exceptional or unusual amounts from
CAS, such as significant revisions to recovery amounts. CAS
includes by-product credits from certain metals obtained during the
process of extracting and processing the primary ore-body. CAS is
accounted for on an accrual basis and excludes Depreciation and
amortization and Reclamation and remediation, which is consistent
with our presentation of CAS on the Consolidated Statements of
Operations. In determining AISC, only the CAS associated with
producing and selling an ounce of gold is included in the measure.
Therefore, the amount of gold CAS included in AISC is derived from
the CAS presented in the Company’s Consolidated Statements of
Operations less the amount of CAS attributable to the production of
other metals. The other metals' CAS at those mine sites is
disclosed in Note 3 of the Consolidated Financial Statements. The
allocation of CAS between gold and other metals is based upon the
relative sales value of gold and other metals produced during the
period.
Reclamation costs. Includes accretion expense related to
reclamation liabilities and the amortization of the related ARC for
the Company’s operating properties. Accretion related to the
reclamation liabilities and the amortization of the ARC assets for
reclamation does not reflect annual cash outflows but are
calculated in accordance with GAAP. The accretion and amortization
reflect the periodic costs of reclamation associated with current
production and are therefore included in the measure. The
allocation of these costs to gold and other metals is determined
using the same allocation used in the allocation of CAS between
gold and other metals.
Advanced projects, research and development and exploration.
Includes incurred expenses related to projects that are designed to
sustain current production and exploration. We note that as current
resources are depleted, exploration and advanced projects are
necessary for us to replace the depleting reserves or enhance the
recovery and processing of the current reserves to sustain
production at existing operations. As these costs relate to
sustaining our production, and are considered a continuing cost of
a mining company, these costs are included in the AISC measure.
These costs are derived from the Advanced projects, research and
development and Exploration amounts presented in the Consolidated
Statements of Operations less incurred expenses related to the
development of new operations, or related to major projects at
existing operations where these projects will materially benefit
the operation in the future. The allocation of these costs to gold
and other metals is determined using the same allocation used in
the allocation of CAS between gold and other metals. We also
allocate these costs incurred at the Other North America, Other
Australia and Corporate and Other locations using the proportion of
CAS between gold and other metals.
General and administrative. Includes costs related to
administrative tasks not directly related to current production,
but rather related to supporting our corporate structure and
fulfilling our obligations to operate as a public company.
Including these expenses in the AISC metric provides visibility of
the impact that general and administrative activities have on
current operations and profitability on a per ounce basis. We
allocate these costs to gold and other metals at the Other North
America, Other Australia and Corporate and Other locations using
the proportion of CAS between gold and other metals.
Other expense, net. For Other expense, net we include care and
maintenance costs relating to direct operating costs incurred at
the mine sites during the period that these sites were temporarily
placed into care and maintenance in response to the COVID-19
pandemic and exclude certain exceptional or unusual expenses, such
as restructuring, as these are not indicative to sustaining our
current operations. Furthermore, this adjustment to Other expense,
net is also consistent with the nature of the adjustments made to
Net income (loss) attributable to Newmont stockholders as disclosed
in the Company’s non-GAAP financial measure Adjusted net income
(loss). The allocation of these costs to gold and other metals is
determined using the same allocation used in the allocation of CAS
between gold and other metals.
Treatment and refining costs. Includes costs paid to smelters
for treatment and refining of our concentrates to produce the
salable metal. These costs are presented net as a reduction of
Sales on the Consolidated Statements of Operations. The allocation
of these costs to gold and other metals is determined using the
same allocation used in the allocation of CAS between gold and
other metals.
Sustaining capital and finance lease payments. We determined
sustaining capital and finance lease payments as those capital
expenditures and finance lease payments that are necessary to
maintain current production and execute the current mine plan. We
determined development (i.e. non-sustaining) capital expenditures
and finance lease payments to be those payments used to develop new
operations or related to projects at existing operations where
those projects will materially benefit the operation and are
excluded from the calculation of AISC. The classification of
sustaining and development capital projects and finance leases is
based on a systematic review of our project portfolio in light of
the nature of each project. Sustaining capital and finance lease
payments are relevant to the AISC metric as these are needed to
maintain the Company’s current operations and provide improved
transparency related to our ability to finance these expenditures
from current operations. The allocation of these costs to gold and
other metals is determined using the same allocation used in the
allocation of CAS between gold and other metals. We also allocate
these costs incurred at the Other North America, Other Australia
and Corporate and Other locations using the proportion of CAS
between gold and other metals.
Three Months Ended December 31,
2022
Costs Applicable to
Sales(1)(2)(3)
Reclamation Costs(4)
Advanced Projects, Research
and Development and Exploration(5)
General and
Administrative
Other Expense,
Net(6)(7)
Treatment and Refining
Costs
Sustaining Capital and Lease
Related Costs(8)(9)
All-In Sustaining
Costs
Ounces (000) Sold
All-In Sustaining Costs Per
oz.(10)
Gold
CC&V
$
76
$
5
$
4
$
—
$
(1
)
$
—
$
15
$
99
55
$
1,783
Musselwhite
52
1
3
—
—
—
21
77
57
1,355
Porcupine
72
3
2
—
—
—
17
94
79
1,188
Éléonore
69
2
4
—
—
—
18
93
66
1,426
Peñasquito
119
2
1
—
2
2
20
146
165
884
Other North America
—
—
1
1
—
—
—
2
—
—
North America
388
13
15
1
1
2
91
511
422
1,213
Yanacocha
99
5
(1
)
1
2
—
6
112
60
1,833
Merian
99
2
2
—
(1
)
—
20
122
118
1,043
Cerro Negro
78
—
—
2
1
—
14
95
73
1,300
Other South America
—
—
—
1
1
—
—
2
—
—
South America
276
7
1
4
3
—
40
331
251
1,318
Boddington
161
5
2
—
—
4
10
182
197
922
Tanami
98
—
1
—
—
—
35
134
128
1,044
Other Australia
—
—
1
2
—
—
2
5
—
—
Australia
259
5
4
2
—
4
47
321
325
986
Ahafo
176
4
2
—
2
—
27
211
176
1,202
Akyem
114
12
—
—
1
—
8
135
116
1,157
Other Africa
—
—
2
2
—
—
1
5
—
—
Africa
290
16
4
2
3
—
36
351
292
1,203
Nevada Gold Mines
300
2
4
3
—
3
68
380
320
1,186
Nevada
300
2
4
3
—
3
68
380
320
1,186
Corporate and Other
—
—
12
46
2
—
3
63
—
—
Total Gold
$
1,513
$
43
$
40
$
58
$
9
$
9
$
285
$
1,957
1,610
$
1,215
Gold equivalent ounces - other metals
(11)
Peñasquito
$
217
$
5
$
2
$
—
$
2
$
35
$
34
$
295
251
$
1,178
Other North America
—
—
—
—
—
—
—
—
—
—
North America
217
5
2
—
2
35
34
295
251
1,181
Boddington
50
—
1
1
—
2
3
57
60
939
Other Australia
—
—
—
1
—
—
—
1
—
—
Australia
50
—
1
2
—
2
3
58
60
954
Corporate and Other
—
—
2
6
1
—
1
10
—
—
Total Gold Equivalent Ounces
$
267
$
5
$
5
$
8
$
3
$
37
$
38
$
363
311
$
1,166
Consolidated
$
1,780
$
48
$
45
$
66
$
12
$
46
$
323
$
2,320
(1)
Excludes Depreciation and amortization and
Reclamation and remediation.
(2)
Includes by-product credits of $36 and
excludes co-product revenues of $370.
(3)
Includes stockpile and leach pad inventory
adjustments of $19 at CC&V, $24 at Yanacocha, $9 at Ahafo, $17
at Akyem, and $2 at NGM.
(4)
Reclamation costs include operating
accretion and amortization of asset retirement costs of $16 and
$32, respectively, and exclude accretion and reclamation and
remediation adjustments at former operating properties and historic
mining operations that have entered the closure phase and have no
substantive future economic value of $29 and $713,
respectively.
(5)
Advanced projects, research and
development and Exploration excludes development expenditures of $1
at Porcupine, $1 at Other North America, $12 at Yanacocha, $2 at
Merian, $10 at Cerro Negro, $11 at Other South America, $6 at
Tanami, $4 at Other Australia, $6 at Ahafo, $2 at Akyem, $4 at NGM
and $18 at Corporate and Other, totaling $77 related to developing
new operations or major projects at existing operations where these
projects will materially benefit the operation.
(6)
Other expense, net includes incremental
COVID-19 costs incurred as a result of actions taken to protect
against the impacts of the COVID-19 pandemic at our operational
sites of $2 for South America.
(7)
Other expense, net is adjusted for
impairment of long-lived and other assets of $1,317, distributions
from the Newmont Global Community Support Fund of $2 and
restructuring and severance costs of $1.
(8)
Includes sustaining capital expenditures
of $113 for North America, $39 for South America, $46 for
Australia, $35 for Africa, $70 for Nevada, and $4 for Corporate and
Other, totaling $307 and excludes development capital expenditures,
capitalized interest and the change in accrued capital totaling
$339. Refer to Liquidity and Capital Resources within Part II, Item
7, Management's Discussion and Analysis for discussion of major
development projects.
(9)
Includes finance lease payments for
sustaining projects of $16.
(10)
Per ounce measures may not recalculate due
to rounding.
(11)
Gold equivalent ounces is calculated as
pounds or ounces produced multiplied by the ratio of the other
metals price to the gold price, using Gold ($1,200/oz.), Copper
($3.25/lb.), Silver ($23.00/oz.), Lead ($0.95/lb.) and Zinc
($1.15/lb.) pricing for 2022.
Three Months EndedDecember 31, 2021
Costs Applicable to
Sales(1)(2)(3)
Reclamation Costs(4)
Advanced Projects, Research
and Development and Exploration(5)
General and
Administrative
Other Expense,
Net (6)(7)
Treatment and
Refining Costs
Sustaining Capital and Lease
Related Costs(8)(9)
All-In Sustaining
Costs
Ounces (000) Sold
All-In Sustaining Costs Per
oz.(10)
Gold
CC&V
$
71
$
2
$
2
$
—
$
—
$
—
$
6
$
81
52
$
1,553
Musselwhite
43
1
2
—
—
—
11
57
45
1,260
Porcupine
73
1
2
—
—
—
12
88
75
1,175
Éléonore
59
1
—
—
1
—
16
77
61
1,265
Peñasquito
117
1
—
—
2
7
19
146
179
821
Other North America
—
—
—
2
2
—
—
4
—
—
North America
363
6
6
2
5
7
64
453
412
1,100
Yanacocha
58
10
3
—
5
—
8
84
67
1,268
Merian
82
1
—
—
1
—
18
102
112
920
Cerro Negro
80
2
(2
)
—
7
—
19
106
78
1,365
Other South America
—
—
1
3
—
—
—
4
—
—
South America
220
13
2
3
13
—
45
296
257
1,158
Boddington
163
3
2
—
—
3
9
180
183
998
Tanami
74
1
2
—
2
—
32
111
146
757
Other Australia
—
—
—
2
—
—
2
4
—
—
Australia
237
4
4
2
2
3
43
295
329
904
Ahafo
129
2
1
—
—
—
24
156
149
1,038
Akyem
62
9
2
—
—
—
15
88
92
950
Other Africa
—
—
1
2
1
—
—
4
—
—
Africa
191
11
4
2
1
—
39
248
241
1,020
Nevada Gold Mines
286
1
3
3
—
—
44
337
381
887
Nevada
286
1
3
3
—
—
44
337
381
887
Corporate and Other
—
—
24
47
1
—
8
80
—
—
Total Gold
$
1,297
$
35
$
43
$
59
$
22
$
10
$
243
$
1,709
1,620
$
1,056
Gold equivalent ounces - other metals
(11)
Peñasquito
$
202
$
2
$
1
$
1
$
3
$
31
$
32
$
272
281
$
956
Other North American
—
—
—
—
(1
)
—
—
(1
)
—
—
North America
202
2
1
1
2
31
32
271
281
955
Boddington
41
1
—
—
—
2
1
45
47
993
Other Australia
—
—
—
—
—
—
—
—
—
—
Australia
41
1
—
—
—
2
1
45
47
1,009
Corporate and Other
—
—
4
9
—
—
1
14
—
—
Total Gold Equivalent Ounces
$
243
$
3
$
5
$
10
$
2
$
33
$
34
$
330
328
$
1,007
Consolidated
$
1,540
$
38
$
48
$
69
$
24
$
43
$
277
$
2,039
(1)
Excludes Depreciation and amortization and
Reclamation and remediation.
(2)
Includes by-product credits of $35 and
excludes co-product revenues of $475.
(3)
Includes stockpile and leach pad inventory
adjustments of $7 at CC&V and $1 at NGM.
(4)
Reclamation costs include operating
accretion and amortization of asset retirement costs of $19 and
$19, respectively, and exclude accretion and reclamation and
remediation adjustments at former operating properties and historic
mining operations that have entered the closure phase and have no
substantive future economic value of $13 and $1,594,
respectively.
(5)
Advanced projects, research and
development and Exploration excludes development expenditures of $3
at CC&V, $1 at Porcupine, $3 at Peñasquito, $2 at Other North
America, $4 at Yanacocha, $3 at Merian, $7 at Cerro Negro, $10 at
Other South America, $4 at Tanami, $6 at Other Australia, $7 at
Ahafo, $2 at Akyem, $5 at NGM and $3 at Corporate and Other,
totaling $60 related to developing new operations or major projects
at existing operations where these projects will materially benefit
the operation.
(6)
Other expense, net includes incremental
COVID-19 costs incurred as a result of actions taken to protect
against the impacts of the COVID-19 pandemic at our operational
sites of $4 for North America, $12 for South America, $2 for
Australia, and $1 for Africa, totaling $19.
(7)
Other expense, net is adjusted for
impairment of long-lived and other assets of $7, distributions from
the Newmont Global Community Support Fund of $2 and restructuring
and severance costs of $1.
(8)
Includes sustaining capital expenditures
of $86 for North America, $45 for South America, $40 for Australia,
$38 for Africa, $43 for Nevada, and $9 for Corporate and Other,
totaling $261 and excludes development capital expenditures,
capitalized interest and the change in accrued capital totaling
$180. Refer to Liquidity and Capital Resources within Part II, Item
7, Management's Discussion and Analysis for discussion of major
development projects.
(9)
Includes finance lease payments for
sustaining projects of $16.
(10)
Per ounce measures may not recalculate due
to rounding.
(11)
Gold equivalent ounces is calculated as
pounds or ounces produced multiplied by the ratio of the other
metals price to the gold price, using Gold ($1,200/oz.), Copper
($2.75/lb.), Silver ($22.00/oz.), Lead ($0.90/lb.) and Zinc
($1.05/lb.) pricing for 2021.
Year EndedDecember 31, 2022
Costs Applicable to
Sales(1)(2)(3)
Reclamation Costs(4)
Advanced Projects, Research
and Development and Exploration(5)
General an
Administrative
Other Expense,
Net(6)(7)
Treatment and Refining
Costs
Sustaining Capital and Lease
Related Costs(8)(9)
All-In Sustaining
Costs
Ounces (000) Sold
All-In Sustaining Costs Per
oz.(11)
Gold
CC&V
$
241
$
16
$
10
$
—
$
3
$
—
$
45
$
315
185
$
1,697
Musselwhite
195
5
8
—
1
—
53
262
172
1,531
Porcupine
281
6
11
—
—
—
52
350
280
1,248
Éléonore
266
9
5
—
3
—
63
346
217
1,599
Peñasquito (10)
442
10
4
1
3
23
72
555
573
968
Other North America
—
—
1
6
1
—
—
8
—
—
North America
1,425
46
39
7
11
23
285
1,836
1,427
1,287
Yanacocha
313
19
2
1
11
—
23
369
250
1,477
Merian
369
6
11
—
2
—
57
445
403
1,105
Cerro Negro
283
5
1
2
10
—
54
355
281
1,262
Other South America
—
—
—
9
—
—
—
9
—
—
South America
965
30
14
12
23
—
134
1,178
934
1,262
Boddington
652
17
5
—
2
16
56
748
813
921
Tanami
328
2
7
—
6
—
124
467
486
960
Other Australia
—
—
2
8
—
—
9
19
—
—
Australia
980
19
14
8
8
16
189
1,234
1,299
950
Ahafo
566
11
5
—
2
—
90
674
572
1,178
Akyem
334
35
2
—
1
—
32
404
415
972
Other Africa
—
—
3
9
1
—
3
16
—
—
Africa
900
46
10
9
4
—
125
1,094
987
1,108
NGM
1,153
9
15
10
—
4
230
1,421
1,165
1,220
Nevada
1,153
9
15
10
—
4
230
1,421
1,165
1,220
Corporate and Other
—
—
70
192
1
—
12
275
—
—
Total Gold
$
5,423
$
150
$
162
$
238
$
47
$
43
$
975
$
7,038
5,812
$
1,211
Gold equivalent ounces - other metals
(12)
Peñasquito (10)
$
864
$
19
$
10
$
1
$
5
$
130
$
132
$
1,161
1,044
$
1,112
Other North America
—
—
—
2
—
—
—
2
—
—
North America
864
19
10
3
5
130
132
1,163
1,044
1,115
Boddington
181
2
2
—
—
10
12
207
231
894
Other Australia
—
—
—
2
—
—
1
3
—
—
Australia
181
2
2
2
—
10
13
210
231
909
Corporate and Other
—
—
11
33
1
—
3
48
—
—
Total Gold Equivalent Ounces
$
1,045
$
21
$
23
$
38
$
6
$
140
$
148
$
1,421
1,275
$
1,114
Consolidated
$
6,468
$
171
$
185
$
276
$
53
$
183
$
1,123
$
8,459
(1)
Excludes Depreciation and amortization and
Reclamation and remediation.
(2)
Includes by-product credits of $117 and
excludes co-product revenues of $1,499.
(3)
Includes stockpile and leach pad inventory
adjustments of $37 at CC&V, $37 at Yanacocha, $3 at Merian, $9
at Ahafo, $19 at Akyem, and $51 at NGM.
(4)
Reclamation costs include operating
accretion and amortization of asset retirement costs of $65 and
$106, respectively, and exclude accretion and reclamation and
remediation adjustments at former operating properties and historic
mining operations that have entered the closure phase and have no
substantive future economic value of $114 and $742,
respectively.
(5)
Advanced projects, research and
development and Exploration excludes development expenditures of $1
at CC&V, $3 at Porcupine, $5 at Peñasquito, $3 at Other North
America, $20 at Yanacocha, $10 at Merian, $24 at Cerro Negro, $40
at Other South America, $21 at Tanami, $16 at Other Australia, $21
at Ahafo, $12 at Akyem, $17 at NGM and $82 at Corporate and Other,
totaling $275 related to developing new operations or major
projects at existing operations where these projects will
materially benefit the operation.
(6)
Other expense, net includes incremental
COVID-19 costs incurred as a result of actions taken to protect
against the impacts of the COVID-19 pandemic at our operational
sites of $11 for North America, $16 for South America and $8 for
Australia, totaling $35.
(7)
Other expense, net is adjusted for
settlement costs of $22, restructuring and severance costs of $4
and distributions from the Newmont Global Community Support Fund of
$3.
(8)
Includes sustaining capital expenditures
of $369 for North America, $133 for South America, $189 for
Australia, $121 for Africa, $230 for Nevada, and $17 for Corporate
and Other, totaling $1,059 and excludes development capital
expenditures, capitalized interest and the change in accrued
capital totaling $1,072. Refer to Liquidity and Capital Resources
within Part II, Item 7, Management's Discussion and Analysis for
discussion of major development projects.
(9)
Includes finance lease payments for
sustaining projects of $64 and excludes finance lease payments for
development projects of $36.
(10)
Costs applicable to sales includes $70
related to the Peñasquito Profit-Sharing Agreement associated with
2021 site performance. For further information, refer to Note 3 of
the Consolidated Financial Statements.
(11)
Per ounce measures may not recalculate due
to rounding.
(12)
Gold equivalent ounces is calculated as
pounds or ounces produced multiplied by the ratio of the other
metals price to the gold price, using Gold ($1,200/oz.), Copper
($3.25/lb.), Silver ($23.00/oz.), Lead ($0.95/lb.) and Zinc
($1.15/lb.) pricing for 2022.
Year EndedDecember 31, 2021
Costs Applicable to
Sales(1)(2)(3)
Reclamation Costs(4)
Advanced Projects, Research
and Development and Exploration(5)
General and
Administrative
Other Expense,
Net(6)(7)(8)
Treatment and Refining
Costs
Sustaining Capital and Lease
Related Costs(9)(10)
All-In Sustaining
Costs
Ounces (000) Sold
All-In Sustaining Costs
Per oz.(11)
Gold
CC&V
$
238
$
7
$
9
$
—
$
—
$
—
$
41
$
295
220
$
1,338
Musselwhite
157
2
7
—
1
—
39
206
154
1,335
Porcupine
269
5
13
—
—
—
43
330
287
1,152
Éléonore
237
3
2
—
5
—
63
310
247
1,256
Peñasquito
395
6
1
—
7
31
65
505
720
702
Other North America
—
—
—
5
3
—
—
8
—
—
North America
1,296
23
32
5
16
31
251
1,654
1,628
1,016
Yanacocha
232
66
6
—
30
1
20
355
263
1,355
Merian
326
5
5
—
5
—
47
388
434
895
Cerro Negro
243
6
—
—
23
—
60
332
267
1,247
Other South America
—
—
1
10
2
—
—
13
—
—
South America
801
77
12
10
60
1
127
1,088
964
1,130
Boddington
607
11
7
—
—
13
102
740
685
1,083
Tanami
278
2
5
—
17
—
116
418
488
855
Other Australia
—
—
—
9
1
—
6
16
—
—
Australia
885
13
12
9
18
13
224
1,174
1,173
1,002
Ahafo
425
8
5
—
5
—
79
522
480
1,084
Akyem
261
30
4
—
1
—
49
345
378
913
Other Africa
—
—
2
8
1
—
—
11
—
—
Africa
686
38
11
8
7
—
128
878
858
1,022
Nevada Gold Mines
960
8
13
10
3
2
172
1,168
1,274
918
Nevada
960
8
13
10
3
2
172
1,168
1,274
918
Corporate and Other
—
—
94
181
1
—
22
298
—
—
Total Gold
$
4,628
$
159
$
174
$
223
$
105
$
47
$
924
$
6,260
5,897
$
1,062
Gold equivalent ounces - other metals
(12)
Peñasquito
$
664
$
9
$
2
$
1
$
11
$
115
$
106
$
908
1,100
$
824
Other North America
—
—
—
2
—
—
—
2
—
—
North America
664
9
2
3
11
115
106
910
1,100
826
Boddington
143
2
1
—
—
7
19
172
158
1,098
Other Australia
—
—
—
1
—
—
1
2
—
—
Australia
143
2
1
1
—
7
20
174
158
1,112
Corporate and Other
—
—
14
32
—
—
3
49
—
—
Total Gold Equivalent Ounces
$
807
$
11
$
17
$
36
$
11
$
122
$
129
$
1,133
1,258
$
900
Consolidated
$
5,435
$
170
$
191
$
259
$
116
$
169
$
1,053
$
7,393
(1)
Excludes Depreciation and amortization and
Reclamation and remediation.
(2)
Includes by-product credits of $194 and
excludes co-product revenues of $1,679.
(3)
Includes stockpile and leach pad inventory
adjustments of $16 at CC&V, $18 at Yanacocha and $11 at
NGM.
(4)
Reclamation costs include operating
accretion and amortization of asset retirement costs of $79 and
$91, respectively, and exclude accretion and reclamation and
remediation adjustments at former operating properties and historic
mining operations that have entered the closure phase and have no
substantive future economic value of $52 and $1,715,
respectively.
(5)
Advanced projects, research and
development and Exploration excludes development expenditures of $9
at CC&V, $4 at Porcupine, $3 at Éléonore, $5 at Peñasquito, $5
at Other North America, $12 at Yanacocha, $6 at Merian, $9 at Cerro
Negro, $34 at Other South America, $19 at Tanami, $16 at Other
Australia, $17 at Ahafo, $6 at Akyem, $17 at NGM and $10 at
Corporate and Other, totaling $172 related to developing new
operations or major projects at existing operations where these
projects will materially benefit the operation.
(6)
Other expense, net includes $8 at Tanami
of cash care and maintenance costs associated with the sites
temporarily being placed into care and maintenance or operating at
reduced levels in response to the COVID-19 pandemic, during the
period ended December 31, 2021 that we would have continued to
incur if the sites were not temporarily placed into care and
maintenance.
(7)
Other expense, net includes incremental
COVID-19 costs incurred as a result of actions taken to protect
against the impacts of the COVID-19 pandemic at our operational
sites of $23 for North America, $46 for South America, $8 for
Australia and $5 for Africa, totaling $82.
(8)
Other expense, net is adjusted for
impairment of long-lived and other assets of $25, settlement costs
of $11, restructuring and severance costs of $11 and incremental
costs of responding to the COVID-19 pandemic of $5.
(9)
Includes sustaining capital expenditures
of $309 for North America, $127 for South America, $228 for
Australia, $125 for Africa, $171 for Nevada, and $25 for Corporate
and Other, totaling $985 and excludes development capital
expenditures, capitalized interest and the change in accrued
capital totaling $668. Refer to Liquidity and Capital Resources
within Part II, Item 7, Management's Discussion and Analysis for
discussion of major development projects.
(10)
Includes finance lease payments for
sustaining projects of $68 and excludes finance lease payments for
development projects of $41.
(11)
Per ounce measures may not recalculate due
to rounding.
(12)
Gold equivalent ounces is calculated as
pounds or ounces produced multiplied by the ratio of the other
metals price to the gold price, using Gold ($1,200/oz.), Copper
($2.75/lb.), Silver ($22.00/oz.), Lead ($0.90/lb.) and Zinc
($1.05/lb.) pricing for 2021.
A reconciliation of the 2023 Gold AISC outlook to the 2023 Gold
CAS outlook is provided below. The estimates in the table below are
considered “forward-looking statements” within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section
21E of the Securities Exchange Act of 1934, as amended, which are
intended to be covered by the safe harbor created by such sections
and other applicable laws.
2023 Outlook - Gold (1)(2)
(in millions, except ounces and per
ounce)
Outlook Estimate
Cost Applicable to Sales (3)(4)
$
5,500
Reclamation Costs (5)
190
Advanced Projects and Exploration (6)
170
General and Administrative (7)
235
Other Expense
15
Treatment and Refining Costs
50
Sustaining Capital (8)
1,000
Sustaining Finance Lease Payments
30
All-in Sustaining Costs
$
7,200
Ounces (000) Sold (9)
6,000
All-in Sustaining Costs per Ounce
$
1,200
(1)
The reconciliation is provided for
illustrative purposes in order to better describe management’s
estimates of the components of the calculation. Estimates for each
component of the forward-looking All-in sustaining costs per ounce
are independently calculated and, as a result, the total All-in
sustaining costs and the All-in sustaining costs per ounce may not
sum to the component ranges. While a reconciliation to the most
directly comparable GAAP measure has been provided for the 2023
AISC Gold Outlook on a consolidated basis, a reconciliation has not
been provided on an individual site or project basis in reliance on
Item 10(e)(1)(i)(B) of Regulation S-K because such reconciliation
is not available without unreasonable efforts.
(2)
All values are presented on a consolidated
basis for Newmont.
(3)
Excludes Depreciation and amortization and
Reclamation and remediation.
(4)
Includes stockpile and leach pad inventory
adjustments.
(5)
Reclamation costs include operating
accretion and amortization of asset retirement costs.
(6)
Advanced Project and Exploration excludes
non-sustaining advanced projects and exploration.
(7)
Includes stock-based compensation.
(8)
Excludes development capital expenditures,
capitalized interest and change in accrued capital.
(9)
Consolidated production for Merian is
presented on a total production basis for the mine site and
excludes production from Pueblo Viejo.
Net debt to Adjusted EBITDA ratio
Management uses net debt to Adjusted EBITDA as non-GAAP measures
to evaluate the Company’s operating performance, including our
ability to generate earnings sufficient to service our debt. Net
debt to Adjusted EBITDA represents the ratio of the Company’s debt,
net of cash and cash equivalents, to Adjusted EBITDA. Net debt to
Adjusted EBITDA does not represent, and should not be considered an
alternative to, net income (loss), operating income (loss), or cash
flow from operations as those terms are defined by GAAP, and does
not necessarily indicate whether cash flows will be sufficient to
fund cash needs. Although Net Debt to Adjusted EBITDA and similar
measures are frequently used as measures of operations and the
ability to meet debt service requirements by other companies, our
calculation of net debt to Adjusted EBITDA measure is not
necessarily comparable to such other similarly titled captions of
other companies. The Company believes that net debt to Adjusted
EBITDA provides useful information to investors and others in
understanding and evaluating our operating results in the same
manner as our management and Board of Directors. Management’s
determination of the components of net debt to Adjusted EBITDA is
evaluated periodically and based, in part, on a review of non-GAAP
financial measures used by mining industry analysts. Net income
(loss) attributable to Newmont stockholders is reconciled to
Adjusted EBITDA as follows:
Three Months Ended
December 31, 2022
September 30, 2022
June 30, 2022
March 31, 2022
Net income (loss) attributable to Newmont
stockholders
$
(1,477
)
$
213
$
387
$
448
Net income (loss) attributable to
noncontrolling interests
19
7
13
21
Net loss (income) from discontinued
operations
(11
)
5
(8
)
(16
)
Equity loss (income) of affiliates
(26
)
(25
)
(17
)
(39
)
Income and mining tax expense
(benefit)
112
96
33
214
Depreciation and amortization
571
508
559
547
Interest expense, net
53
55
57
62
EBITDA
(759
)
859
1,024
1,237
EBITDA Adjustments:
Impairment of long-lived and other
assets
1,317
1
2
—
Reclamation and remediation charges
700
—
—
13
(Gain) loss on asset and investment
sales
(61
)
(9
)
—
35
Change in fair value of investments
(45
)
(5
)
135
(39
)
Pension settlements
7
—
—
130
Settlement costs
2
2
5
13
COVID-19 specific costs
2
—
1
—
Restructuring and severance
1
2
—
1
Other
(3
)
—
(18
)
—
Adjusted EBITDA
1,161
850
1,149
1,390
12 month trailing Adjusted
EBITDA
$
4,550
Total Debt
$
5,571
Lease and other financing obligations
561
Less: Cash and cash equivalents
(2,877
)
Less: Time deposits
(829
)
Total net debt
$
2,426
Net debt to adjusted EBITDA
0.5
Net average realized price per ounce/ pound
Average realized price per ounce/ pound are non-GAAP financial
measures. The measures are calculated by dividing the net
consolidated gold, copper, silver, lead and zinc sales by the
consolidated gold ounces, copper pounds, silver ounces, lead pounds
and zinc pounds sold, respectively. These measures are calculated
on a consistent basis for the periods presented on a consolidated
basis. Average realized price per ounce/ pound statistics are
intended to provide additional information only, do not have any
standardized meaning prescribed by GAAP and should not be
considered in isolation or as a substitute for measures of
performance prepared in accordance with GAAP. The measures are not
necessarily indicative of operating profit or cash flow from
operations as determined under GAAP. Other companies may calculate
these measures differently.
The following tables reconcile these non-GAAP measures to the
most directly comparable GAAP measure:
Three Months Ended
December 31,
Year Ended December
31,
2022
2021
2022
2021
Consolidated gold sales, net
$
2,830
$
2,915
$
10,416
$
10,543
Consolidated copper sales, net
93
91
316
295
Consolidated silver sales, net
148
165
549
651
Consolidated lead sales, net
35
43
133
172
Consolidated zinc sales, net
94
176
501
561
Total sales
$
3,200
$
3,390
$
11,915
$
12,222
Three Months Ended December
31, 2022
Gold
Copper
Silver
Lead
Zinc
(ounces)
(pounds)
(ounces)
(pounds)
(pounds)
Consolidated sales:
Gross before provisional pricing and
streaming impact
$
2,819
$
83
$
131
$
39
$
105
Provisional pricing mark-to-market
20
12
7
4
9
Silver streaming amortization
—
—
17
—
—
Gross after provisional pricing and
streaming impact
2,839
95
155
43
114
Treatment and refining charges
(9
)
(2
)
(7
)
(8
)
(20
)
Net
$
2,830
$
93
$
148
$
35
$
94
Consolidated ounces (thousands)/ pounds
(millions) sold
1,610
22
7,220
40
83
Average realized price (per ounce/pound):
(1)
Gross before provisional pricing and
streaming impact
$
1,751
$
3.70
$
17.97
$
0.97
$
1.25
Provisional pricing mark-to-market
12
0.54
1.00
0.11
0.11
Silver streaming amortization
—
—
2.45
—
—
Gross after provisional pricing and
streaming impact
1,763
4.24
21.42
1.08
1.36
Treatment and refining charges
(5
)
(0.12
)
(1.00
)
(0.21
)
(0.24
)
Net
$
1,758
$
4.12
$
20.42
$
0.87
$
1.12
Year Ended December 31,
2022
Gold
Copper
Silver
Lead
Zinc
(ounces)
(pounds)
(ounces)
(pounds)
(pounds)
Consolidated sales:
Gross before provisional pricing and
streaming impact
$
10,461
$
337
$
533
$
145
$
583
Provisional pricing mark-to-market
(2
)
(11
)
(11
)
(1
)
(9
)
Silver streaming amortization
—
—
73
—
—
Gross after provisional pricing and
streaming impact
10,459
326
595
144
574
Treatment and refining charges
(43
)
(10
)
(46
)
(11
)
(73
)
Net
$
10,416
$
316
$
549
$
133
$
501
Consolidated ounces (thousands)/ pounds
(millions) sold
5,812
85
29,743
147
373
Average realized price (per ounce/pound):
(1)
Gross before provisional pricing and
streaming impact
$
1,800
$
3.94
$
17.90
$
0.98
$
1.56
Provisional pricing mark-to-market
—
(0.13
)
(0.35
)
—
(0.02
)
Silver streaming amortization
—
—
2.45
—
—
Gross after provisional pricing and
streaming impact
1,800
3.81
20.00
0.98
1.54
Treatment and refining charges
(8
)
(0.12
)
(1.55
)
(0.07
)
(0.20
)
Net
$
1,792
$
3.69
$
18.45
$
0.91
$
1.34
Three Months Ended December
31, 2021
Gold
Copper
Silver
Lead
Zinc
(ounces)
(pounds)
(ounces)
(pounds)
(pounds)
Consolidated sales:
Gross before provisional pricing and
streaming impact
$
2,906
$
88
$
151
$
43
$
174
Provisional pricing mark-to-market
19
5
8
2
16
Silver streaming amortization
—
—
21
—
—
Gross after provisional pricing and
streaming impact
2,925
93
180
45
190
Treatment and refining charges
(10
)
(2
)
(15
)
(2
)
(14
)
Net
$
2,915
$
91
$
165
$
43
$
176
Consolidated ounces (thousands)/ pounds
(millions) sold
1,620
20
8,299
39
114
Average realized price (per ounce/pound):
(1)
Gross before provisional pricing and
streaming impact
$
1,794
$
4.35
$
18.24
$
1.07
$
1.53
Provisional pricing mark-to-market
11
0.30
0.92
0.06
0.14
Silver streaming amortization
—
—
2.44
—
—
Gross after provisional pricing and
streaming impact
1,805
4.65
21.60
1.13
1.67
Treatment and refining charges
(7
)
(0.11
)
(1.78
)
(0.02
)
(0.13
)
Net
$
1,798
$
4.54
$
19.82
$
1.11
$
1.54
Year Ended December 31,
2021
Gold
Copper
Silver
Lead
Zinc
(ounces)
(pounds)
(ounces)
(pounds)
(pounds)
Consolidated sales:
Gross before provisional pricing and
streaming impact
$
10,581
$
292
$
641
$
173
$
593
Provisional pricing mark-to-market
9
10
(12
)
4
21
Silver streaming amortization
—
—
79
—
—
Gross after provisional pricing and
streaming impact
10,590
302
708
177
614
Treatment and refining charges
(47
)
(7
)
(57
)
(5
)
(53
)
Net
$
10,543
$
295
$
651
$
172
$
561
Consolidated ounces (thousands)/ pounds
(millions) sold
5,897
69
32,237
173
433
Average realized price (per ounce/pound):
(1)
Gross before provisional pricing and
streaming impact
$
1,794
$
4.24
$
19.92
$
1.00
$
1.37
Provisional pricing mark-to-market
2
0.15
(0.40
)
0.02
0.05
Silver streaming amortization
—
—
2.44
—
—
Gross after provisional pricing and
streaming impact
1,796
4.39
21.96
1.02
1.42
Treatment and refining charges
(8
)
(0.10
)
(1.77
)
(0.02
)
(0.12
)
Net
$
1,788
$
4.29
$
20.19
$
1.00
$
1.30
(1)
Per ounce/pound measures may not
recalculate due to rounding.
Gold by-product metrics
Copper, silver, lead and zinc are by-products often obtained
during the process of extracting and processing the primary
ore-body. In our GAAP Consolidated Financial Statements, the value
of these by-products is recorded as a credit to our CAS and the
value of the primary ore is recorded as Sales. In certain
instances, copper, silver, lead and zinc are co-products, or a
significant resource in the primary ore-body, and the revenue is
recorded as Sales in our GAAP Consolidated Financial
Statements.
Gold by-product metrics are non-GAAP financial measures that
serve as a basis for comparing the Company’s performance with
certain competitors. As Newmont’s operations are primarily focused
on gold production, “Gold by-product metrics” were developed to
allow investors to view Sales, CAS per ounce and AISC per ounce
calculations that classify all copper, silver, lead and zinc
production as a by-product, even when copper, silver, lead or zinc
is a significant resource in the primary ore-body. These metrics
are calculated by subtracting copper, silver, lead and zinc sales
recognized from Sales and including these amounts as offsets to
CAS.
Gold by-product metrics are calculated on a consistent basis for
the periods presented on a consolidated basis. These metrics are
intended to provide supplemental information only, do not have any
standardized meaning prescribed by GAAP and should not be
considered in isolation or as a substitute for measures of
performance prepared in accordance with GAAP. Other companies may
calculate these measures differently as a result of differences in
the underlying accounting principles, policies applied and in
accounting frameworks, such as in IFRS.
The following tables reconcile these non-GAAP measures to the
most directly comparable GAAP measures:
Three Months Ended
December 31,
Year Ended December
31,
2022
2021
2022
2021
Consolidated gold sales, net
$
2,830
$
2,915
$
10,416
$
10,543
Consolidated other metal sales, net
370
475
1,499
1,679
Sales
$
3,200
$
3,390
$
11,915
$
12,222
Costs applicable to sales
$
1,780
$
1,540
$
6,468
$
5,435
Less: Consolidated other metal sales,
net
(370
)
(475
)
(1,499
)
(1,679
)
By-Product costs applicable to sales
$
1,410
$
1,065
$
4,969
$
3,756
Gold sold (thousand ounces)
1,610
1,620
5,812
5,897
Total Gold CAS per ounce (by-product)
(1)
$
876
$
657
$
855
$
637
Total AISC
$
2,320
$
2,039
$
8,459
$
7,393
Less: Consolidated other metal sales,
net
(370
)
(475
)
(1,499
)
(1,679
)
By-Product AISC
$
1,950
$
1,564
$
6,960
$
5,714
Gold sold (thousand ounces)
1,610
1,620
5,812
5,897
Total Gold AISC per ounce (by-product)
(1)
$
1,211
$
965
$
1,198
$
969
(1)
Per ounce measures may not recalculate due
to rounding.
Conference Call Information
A conference call will be held on Thursday, February 23,
2023 at 10:00 a.m. Eastern Time (8:00 a.m. Mountain
Time); it will also be carried on the Company’s website.
Conference Call Details
Dial-In Number
844.200.6205
Intl Dial-In Number
929.526.1599
Dial-In Access Code
885411
Conference Name
Newmont
Replay Number
866.813.9403
Intl Replay Number
44.204.525.0658
Replay Access Code
661698
Webcast Details
Title: Newmont Fourth Quarter Results and 2023 Guidance
Conference Call URL:
https://events.q4inc.com/attendee/718711521
The fourth quarter 2022 results and 2023 guidance will be
available before the market opens on Thursday, February 23, 2023 on
the “Investor Relations” section of the Company’s website,
www.newmont.com. Additionally, the conference call will be archived
for a limited time on the Company’s website.
About Newmont
Newmont is the world’s leading gold company and a producer of
copper, silver, zinc and lead. The Company’s world-class portfolio
of assets, prospects and talent is anchored in favorable mining
jurisdictions in North America, South America, Australia and
Africa. Newmont is the only gold producer listed in the S&P 500
Index and is widely recognized for its principled environmental,
social and governance practices. The Company is an industry leader
in value creation, supported by robust safety standards, superior
execution and technical expertise. Newmont was founded in 1921 and
has been publicly traded since 1925.
Cautionary Statement Regarding Forward
Looking Statements, Including Outlook and Dividends:
This news release contains “forward-looking statements” within
the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended, which are intended to be covered by the safe harbor
created by such sections and other applicable laws. Where a
forward-looking statement expresses or implies an expectation or
belief as to future events or results, such expectation or belief
is expressed in good faith and believed to have a reasonable basis.
However, such statements are subject to risks, uncertainties and
other factors, which could cause actual results to differ
materially from future results expressed, projected or implied by
the forward-looking statements. Forward-looking statements often
address our expected future business and financial performance and
financial condition; and often contain words such as “anticipate,”
“intend,” “plan,” “will,” “would,” “estimate,” “expect,” “believe,”
or “potential.” Forward-looking statements in this news release may
include, without limitation, (i) estimates of future production and
sales, including production outlook, average future production and
upside potential; (ii) estimates of future costs applicable to
sales and all-in sustaining costs; (iii) estimates of future
capital expenditures, including development and sustaining capital;
(iv) expectations regarding the Tanami Expansion 2, Ahafo North,
Yanacocha Sulfides, Pamour and Cerro Negro District Expansion 1
projects, including, without limitation, expectations for
production, milling, costs applicable to sales and all-in
sustaining costs, capital costs, mine life extension, construction
completion commercial production, and other timelines; (v)
expectations regarding future investments or divestitures; (vi)
expectations regarding free cash flow and returns to stockholders,
including with respect to future dividends, the dividend framework
and expected payout levels; (vii) expectations regarding future
mineralization, including, without limitation, expectations
regarding reserves and recoveries; and (viii) other outlook.
Estimates or expectations of future events or results are based
upon certain assumptions, which may prove to be incorrect. Such
assumptions, include, but are not limited to: (i) there being no
significant change to current geotechnical, metallurgical,
hydrological and other physical conditions; (ii) permitting,
development, operations and expansion of operations and projects
being consistent with current expectations and mine plans; (iii)
political developments in any jurisdiction in which the Company
operates being consistent with its current expectations; (iv)
certain exchange rate assumptions; (v) certain price assumptions
for gold, copper, silver, zinc, lead and oil; (vi) prices for key
supplies; (vii) the accuracy of current mineral reserve and
mineralized material estimates; and (viii) other planning
assumptions. Uncertainties relating to the impacts of Covid-19,
include, without limitation, general macroeconomic uncertainty and
changing market conditions, changing restrictions on the mining
industry in the jurisdictions in which we operate, the ability to
operate following changing governmental restrictions on travel and
operations (including, without limitation, the duration of
restrictions, including access to sites, ability to transport and
ship doré, access to processing and refinery facilities, impacts to
international trade, impacts to supply chain, including price,
availability of goods, ability to receive supplies and fuel,
impacts to productivity and operations in connection with decisions
intended to protect the health and safety of the workforce, their
families and neighboring communities), the impact of additional
waves or variations of Covid, and the availability and impact of
Covid vaccinations in the areas and countries in which we operate.
Such uncertainties could result in operating sites being placed
into care and maintenance and impact estimates, costs and timing of
projects. Although the Company does not currently have operations
in Ukraine, Russia or other parts of Europe, Russia’s invasion of
Ukraine has resulted in uncertainties in the market which could
impact certain planning assumptions, including, but not limited to
commodity and currency prices, costs and supply chain
availabilities. Investors are reminded that the dividend framework
is non-binding and the 2023 dividend payout range does not
represent a legal commitment.
Future dividends beyond the dividend payable on March 23, 2023
to holders of record at the close of business on March 9, 2023 have
not yet been approved or declared by the Board of Directors, and an
annualized dividend payout or dividend yield has not been declared
by the Board. Management’s expectations with respect to future
dividends are “forward-looking statements” and the Company’s
dividend framework is non-binding. The declaration and payment of
future dividends remain at the discretion of the Board of Directors
and will be determined based on Newmont’s financial results,
balance sheet strength, cash and liquidity requirements, future
prospects, gold and commodity prices, and other factors deemed
relevant by the Board. No guarantees can be made that the Company
will be able to maintain the same dividend level in the future.
For a more detailed discussion of risks and other factors that
might impact future looking statements, see the Company’s Annual
Report on Form 10-K for the year ended December 31, 2022 filed with
the U.S. Securities and Exchange Commission (the “SEC”), under the
heading “Risk Factors", available on the SEC website or
www.newmont.com. The Company does not undertake any obligation to
release publicly revisions to any “forward-looking statement,”
including, without limitation, outlook, to reflect events or
circumstances after the date of this news release, or to reflect
the occurrence of unanticipated events, except as may be required
under applicable securities laws. Investors should not assume that
any lack of update to a previously issued “forward-looking
statement” constitutes a reaffirmation of that statement. Continued
reliance on “forward-looking statements” is at investors’ own
risk.
Notice Regarding Reserve and
Resource:
The reserves stated herein were prepared in compliance with
Subpart 1300 of Regulation S-K adopted by the SEC and represent the
amount of gold, copper, silver, lead, zinc and molybdenum
estimated, at December 31, 2022, could be economically and legally
extracted or produced at the time of the reserve determination. The
term “economically,” as used in this definition, means that
profitable extraction or production has been established or
analytically demonstrated in at a minimum, a pre-feasibility study
to be viable and justifiable under reasonable investment and market
assumptions. The term “legally,” as used in this definition, does
not imply that all permits needed for mining and processing have
been obtained or that other legal issues have been completely
resolved. However, for a reserve to exist, Newmont (or our joint
venture partners) must have a justifiable expectation, based on
applicable laws and regulations, that issuance of permits or
resolution of legal issues necessary for mining and processing at a
particular deposit will be accomplished in the ordinary course and
in a timeframe consistent with Newmont’s (or our joint venture
partner’s) current mine plans. Reserves in this presentation are
aggregated from the proven and probable classes. The term “Proven
reserves” used in the tables of the appendix means reserves for
which (a) quantity is estimated from dimensions revealed in
outcrops, trenches, workings or drill holes; (b) grade and/or
quality are estimated from the results of detailed sampling; and
(c) the sites for inspection, sampling and measurements are spaced
so closely and the geologic character is sufficiently defined that
size, shape, depth and mineral content of reserves are well
established. The term “Probable reserves” means reserves for which
quantity and grade are estimated from information similar to that
used for Proven reserves, but the sites for sampling are farther
apart or are otherwise less closely spaced. The degree of
assurance, although lower than that for Proven reserves, is high
enough to assume continuity between points of observation. Newmont
classifies all reserves as Probable on its development projects
until a year of production has confirmed all assumptions made in
the reserve estimates. Proven and Probable reserves include gold,
copper, silver, zinc, lead or molybdenum attributable to Newmont’s
ownership or economic interest. Proven and Probable reserves were
calculated using cut-off grades. The term “cutoff grade” means the
lowest grade of mineralized material considered economic to
process. Cut-off grades vary between deposits depending upon
prevailing economic conditions, mineability of the deposit,
by-products, amenability of the ore to gold, copper, silver, zinc,
lead or molybdenum extraction and type of milling or leaching
facilities available.
Estimates of Proven and Probable reserves are subject to
considerable uncertainty. Such estimates are, or will be, to a
large extent, based on the prices of gold, silver, copper, zinc,
lead and molybdenum and interpretations of geologic data obtained
from drill holes and other exploration techniques, which data may
not necessarily be indicative of future results. If our reserve
estimations are required to be revised using significantly lower
gold, silver, zinc, copper, lead and molybdenum prices as a result
of a decrease in commodity prices, increases in operating costs,
reductions in metallurgical recovery or other modifying factors,
this could result in material write-downs of our investment in
mining properties, goodwill and increased amortization, reclamation
and closure charges. Producers use pre-feasibility and feasibility
studies for undeveloped ore bodies to derive estimates of capital
and operating costs based upon anticipated tonnage and grades of
ore to be mined and processed, the predicted configuration of the
ore body, expected recovery rates of metals from the ore, the costs
of comparable facilities, the costs of operating and processing
equipment and other factors. Actual operating and capital cost and
economic returns on projects may differ significantly from original
estimates. Further, it may take many years from the initial phases
of exploration until commencement of production, during which time,
the economic feasibility of production may change.
Estimates of resources are subject to further exploration and
development, are subject to additional risks, and no assurance can
be given that they will eventually convert to future reserves.
Inferred resources, in particular, have a great amount of
uncertainty as to their existence and their economic and legal
feasibility. Investors are cautioned not to assume that any part of
all of the Inferred resource exists or is economically or legally
mineable. The Company cannot be certain that any part or parts of
the resource will ever be converted into reserves. In addition, if
the price of gold, silver, copper, zinc, lead or molybdenum
declines from recent levels, if production costs increase, grades
decline, recovery rates decrease or if applicable laws and
regulations are adversely changed, the indicated level of recovery
may not be realized or mineral reserves or resources might not be
mined or processed profitably. If we determine that certain of our
mineral reserves or resources have become uneconomic, this may
ultimately lead to a reduction in our aggregate reported mineral
reserves and resources. Consequently, if our actual mineral
reserves and resources are less than current estimates, our
business, prospects, results of operations and financial position
may be materially impaired. For additional information see the
“Proven and Probable Reserve" and "Measured and Indicated and
Inferred Resource" tables, in the Company’s Form 10-K, filed on
February 23, 2023, with the SEC.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230223005220/en/
Media Contact Carolina Lucaroni
786.643.9230 carolina.lucaroni@newmont.com
Investor Contact Daniel Horton
303.837.5468 daniel.horton@newmont.com
Newmont (TSX:NGT)
Historical Stock Chart
From Mar 2024 to Apr 2024
Newmont (TSX:NGT)
Historical Stock Chart
From Apr 2023 to Apr 2024