Generated $183 million in cash flow from continuing operations
on $1.8 billion in revenues
Newmont Mining Corporation (NYSE: NEM) (“Newmont” or the
“Company”) today reported first quarter 2014 financial and
operating results.
“We are building on the momentum we established in 2013
with strong cost and production performance in the first
quarter of 2014,” said Gary Goldberg, President and Chief Executive
Officer. “Our team drove down all-in sustaining costs by $82
million compared to the prior year quarter through sustainable cost
and efficiency improvements. We are also delivering on our
commitment to improve mining fundamentals, which led to a 40
percent increase in gold production at Tanami compared to the prior
year quarter. We are confident we can maintain this trajectory as
the year progresses, as evidenced by our updated outlook for lower
costs and higher production for Africa.”
Highlights for the first
quarter
- Achieved reported net income
attributable to shareholders from continuing operations of $117
million, or $0.23 per basic share, and adjusted net income1 of $108
million, or $0.22 per basic share;
- Generated cash from continuing
operations of $183 million;
- Generated cost savings of $82 million
in gold all-in sustaining costs2 (“AISC”), which equates to $1,034
per ounce, down 8 percent from the prior year quarter;
- Realized costs applicable to sales
(“CAS”) of $751 per ounce of gold and $2.71 per pound of copper, a
decrease of 1 percent and an increase of 19 percent, respectively,
over first quarter last year;
- Delivered 1.2 million ounces and 24
thousand tonnes of attributable gold and copper production, with
higher gold production coming from our Australia/New Zealand and
Africa operations;
- Improved AISC outlook3 by 13 percent,
and production outlook by 2 percent in Africa; and
- Declared a second quarter dividend of
$0.025 per share in accordance with the Company’s gold price-linked
dividend policy4.
First Quarter Financial Results
The Company reported attributable net income from continuing
operations of $117 million, or $0.23 per basic share, compared with
$314 million, or $0.63 per share in 2013. The Company reported
adjusted net income of $108 million, or $0.22 per basic share,
compared with $353 million, or $0.70 per basic share a year
earlier. Improved production and stable operating costs relative to
the prior year quarter were offset by declines in average realized
gold and copper prices of approximately 21 percent and 20 percent,
respectively. Reduced spending on exploration, advanced projects,
and sustaining capital also led to $82 million in lower gold AISC
this quarter.
Summary of first quarter 2014 financial results compared with
2013:
- Generated revenue of $1.8 billion
compared with $2.2 billion in 2013;
- Gold and copper AISC of $1,034 per
ounce and $3.67 per pound, respectively, compared with $1,121 per
ounce and $3.38 per pound, respectively;
- Average realized gold and copper price
of $1,293 per ounce and $2.50 per pound, respectively, compared
with $1,631 per ounce and $3.12 per pound, respectively;
- Gold and copper CAS of $751 per ounce
and $2.71 per pound, respectively, compared with $760 per ounce and
$2.27 per pound, respectively; and
- Cash flow from continuing operations of
$183 million compared with $439 million.
First Quarter Operating Results
Summary Production Table (Attributable production,
Koz and kt) Region Q1 2014
Q1 2013 Change North America
405 436 -7% South America
122 162 -25%
Australia/New Zealand 450 435
3% Indonesia 8 7
14% Africa 225 125 80%
Total Gold 1,210
1,165 4% North America 6
3 100% Australia/New Zealand
8 8 0% Indonesia
10 9 11%
Total Copper
24 20 20%
Summary CAS Table (Consolidated $/oz and
$/lb) Region Q1 2014
Q1 2013 Change North America
$726 $766 -5% South America
$1,075 $576 87%
Australia/New Zealand $783 $922
-15% Indonesia $1,283 $993
29% Africa $428 $555
-23%
Total Gold CAS $751
$760 -1% North America
$2.39 $3.20 -25%
Australia/New Zealand $2.63 $2.35
12% Indonesia $2.99 $2.05
46%
Total Copper CAS
$2.71 $2.27 19%
Summary All-in Sustaining Costs Table
(Consolidated $/oz and $/lb) Region
Q1 2014 Q1 2013
Change North America $958 $1,027
-7% South America $1,403
$885 59% Australia/New Zealand $942
$1,136 -17% Indonesia
$2,167 $2,000 8% Africa
$616 $1,126 -45%
Total Gold AISC
$1,034 $1,121
-8% North America $2.55
$3.75 -32% Australia/New Zealand $3.27
$2.95 11% Indonesia $4.63
$3.70 25%
Total Copper AISC
$3.67 $3.38
9%
Attributable gold production increased approximately 4 percent
from 2013 levels due to production from the new Akyem operation, as
well as higher production from Australian operations, partially
offset by lower production from Peru as a result of the planned
stripping campaign at Yanacocha. Attributable copper tonnes
produced were 20 percent higher with the contribution from the
Phoenix Copper Leach operation in Nevada. Gold CAS remained stable
over last year. Gold AISC was reduced by 8 percent, primarily due
to cost and efficiency improvements.
First Quarter Operating Results by Region
North America
Attributable gold production at Carlin decreased 1 percent from
the prior year quarter, primarily due to planned lower grades at
Mill 6. CAS per ounce increased 4 percent due to planned stockpile
and leach pad inventory adjustments, partially offset by lower
operating costs.
Attributable gold production at Phoenix increased 4 percent from
the prior year quarter due to slightly higher grade at the Phoenix
mill. Copper pounds produced increased 71 percent due to production
from the Phoenix Copper Leach operation, which entered commercial
production in the fourth quarter of 2013. Gold CAS per ounce
decreased 48 percent due to higher ounces sold and a higher
allocation of costs to copper with the copper leach facility in
production. Copper CAS per pound decreased 25 percent due to higher
copper pounds sold as a result of the new copper leach
facility.
Attributable gold production at Twin Creeks decreased 3 percent
from the prior year quarter due to lower production following the
sale of Midas, partially offset by higher mill throughput at the
Autoclave. CAS per ounce decreased 1 percent due to more ounces
sold.
Attributable gold production at La Herradura decreased 49
percent from the prior year quarter due to the suspension of their
explosives permit. CAS per ounce decreased 6 percent due to a
decrease in stripping with the ramp up of production after
receiving the explosives permit at the end of February partially
offset by lower ounces sold.
Gold AISC in North America was $958 per ounce, a decrease of 7
percent over the prior year quarter due to realization of operating
efficiencies, reduced exploration and advanced project spend and
reduced royalties. Copper AISC was $2.55 per pound, a decrease of
32 percent over prior year quarter due to increased copper
production from Phoenix Copper Leach.
South America
Attributable gold production at Yanacocha decreased 25 percent
from the prior year quarter mainly due to the planned stripping
phase at the Tapado Oeste pit. Production is expected to increase
in the second half of 2014 as mining returns to higher grade ore at
Tapado Oeste. CAS per ounce increased 87 percent from the prior
year quarter primarily due to higher direct mining costs associated
with the current stripping campaign.
Gold AISC in South America was $1,403 per ounce, an increase of
59 percent over the prior year quarter due to higher production
costs and lower volume resulting from the stripping campaign.
Australia/New Zealand
Attributable gold production at Boddington decreased 2 percent
from the prior year quarter, primarily due to lower grades. Copper
production was in line with the prior year quarter. Boddington
realized record-setting throughput levels this quarter due to
sustainable process improvements implemented through the Full
Potential program. These benefits were offset by the lower grades.
Gold CAS decreased 3 percent per ounce due to a combination of
lower mill maintenance costs and favorable foreign exchange rates.
Copper CAS increased 12 percent per pound, primarily due to planned
stockpile inventory adjustments.
Attributable gold production at Tanami increased 40 percent from
the prior year quarter, primarily as a result of higher grades from
the Auron ore body and lower mining dilution from improved mining
practices. CAS per ounce decreased by 45 percent due to higher
production coupled with lower operating costs and favorable foreign
exchange rates.
Attributable gold production at Jundee decreased 17 percent from
the prior year quarter primarily as a result of lower ore grade
milled. CAS per ounce decreased by 6 percent as a result of lower
underground mining costs and favorable foreign exchange rates,
partially offset by lower production.
Attributable gold production at Waihi decreased 10 percent from
the prior year quarter primarily as a result of lower ore grade
milled and a build-up of gold in circuit inventory, partially
offset by higher throughput. CAS per ounce decreased by 18 percent
as a result of lower underground mining costs.
Attributable gold production at KCGM increased 15 percent from
the prior year quarter primarily as a result of higher grades and
tons milled. CAS per ounce decreased by 17 percent as a result of
the higher production.
Gold AISC in Australia/New Zealand was $942 per ounce, a
decrease of 17 percent over the prior year quarter due to lower
production costs, exploration costs, and sustaining capital spend.
Copper AISC was $3.27 per pound, an increase of 11 percent over the
prior year due to higher CAS per pound.
Indonesia
Attributable gold and copper production at Batu Hijau increased
14 percent and 11 percent, respectively, from the prior year
quarter due to higher ore grade and recovery for both gold and
copper. However, the Company was unable to export approximately 2
thousand attributable ounces of gold and 2.5 thousand attributable
tonnes of copper as a result of new export regulations imposed in
January 2014 by the Indonesian government.
CAS increased 29 percent per ounce of gold and 46 percent per
pound of copper, due to the planned stockpile inventory adjustments
and lower ounces and pounds sold.
Gold AISC in Indonesia was $2,167 per ounce, an increase of 8
percent over the prior year quarter and copper AISC was $4.63 per
pound, an increase of 25 percent over the prior year quarter, due
to lower ounces and pounds sold.
Africa
Attributable gold production at Ahafo decreased 16 percent from
the prior year quarter due to lower processed ore grade. CAS per
ounce was in line with the prior year. The new Akyem operation is
performing well, providing 120,000 ounces of production at CAS of
$311 per ounce.
Gold AISC in Africa was $616 per ounce this quarter, a decrease
of 45 percent over the prior year quarter due to new production at
Akyem and lower exploration and advanced project expense and
sustaining capital.
Outlook Update
The Company continues to expect total attributable gold
production of between 4.6 to 4.9 million ounces at CAS of $740 to
$790 per ounce and AISC of $1,075 to $1,175 per ounce. The Company
also continues to expect total copper production of between 95 to
110 thousand tonnes at CAS of $2.00 to $2.25 per pound and AISC of
$2.75 to $2.95 per pound. As a result of mine plan optimization at
the Ahafo operation in Africa, the Company is increasing production
outlook from between 785,000 to 850,000 ounces to between 790,000
to 870,000 ounces for the region. Both Ahafo and Akyem are
realizing lower costs and the Company is reducing its Africa
regional CAS from $575 to $625 per ounce to $510 to $555 per ounce,
and AISC from $795 to $865 per ounce to $690 to $755 per ounce for
2014. The Company also announced a decrease in expected interest
expense of $25 million. Offsetting that, the 2014 tax rate is now
expected to be between 37 and 40 percent, primarily due to the tax
treatment of the sale of Midas and higher taxes in Peru.
Balance Sheet and Financial Flexibility
Cash from continuing operations was $183 million. The Company
also received cash of $57 million from the sale of its Midas
operation and $25 million from the sale of its investment in
Paladin Energy. At quarter end, the Company held $1.5 billion of
consolidated cash on its balance sheet.
The Company also recently closed on a term loan of $575 million.
The term loan provides for a single, delayed drawdown through July
15, 2014, with a maturity date five years from drawdown. The loan
is intended to retire the $575 million of convertible debt maturing
July 2014. The Company now expects a lower 2014 interest expense of
between $325 to $350 million. Concurrent with closing the term
loan, the Company also renewed its $3.0 billion corporate revolving
credit facility, extending the maturity date two years to March 31,
2019. At March 31, there were no outstanding borrowings under the
facility.
Capital Update
Total capital spent in the first quarter was $235 million.
Capital expenditures in North America during the first quarter of
2014 were primarily related to the development of the Turf Leeville
vent shaft in Nevada. Capital expenditures in South America,
Australia and New Zealand, Indonesia, and Africa were primarily for
sustaining capital.
The Company continues to manage its wider project portfolio to
maintain flexibility to address the development risks associated
with its projects including permitting, local community and
government support, engineering and procurement availability,
technical issues, escalating costs and other associated risks that
could adversely impact the timing and costs of certain
opportunities.
Indonesia Update
In January 2014, the Indonesian government issued new
regulations for the export of copper concentrate that contain
potentially restrictive conditions for obtaining an export permit,
as well as a significant, progressive export duty. While the 2009
mining law preserves the validity of PT Newmont Nusa Tenggara’s
(“PTNNT”, the entity operating the Batu Hijau mine) Contract of
Work (the investment agreement entered into by PTNNT and the
Indonesian government in 1986, which includes the right to export
copper concentrates and a prohibition against new taxes, duties,
and levies), the Indonesian government has stated its intention to
enforce the new regulations on PTNNT’s operations and has not yet
recognized PTNNT’s rights to export copper concentrate and only pay
the taxes, duties, and levies specified in the Contract of Work.
The Company believes that these new 2014 regulations conflict with
the Contract of Work. Although PTNNT is continuing to engage with
government officials in Indonesia in an effort to resolve this
issue and gain clarity on implementation of the new
regulations, while also considering other remedies, including
possible legal action, the Company can make no assurances that the
new regulations will not impact operations and/or outlook. In April
2014, PTNNT received the required approval as a registered exporter
from the Ministry of Trade and continues working through the
process and engaging with the government to secure the newly
required export permit. At this time, operations continue at Batu
Hijau. However, to the extent there are continued delays in
obtaining approvals for 2014 exports, PTNNT will implement
contingency plans to scale back production taking into
consideration copper concentrate storage capacity and in-country
smelter availability, which would impact the Company's ability to
achieve its outlook. For a discussion of this and other factors
which could impact future financial performance and operating
results in Indonesia, see Item 1A, under the heading “Risk
Factors,” of the Company’s Form 10-K, filed on February 21,
2014.
__________
1 Non-GAAP measure. See end of this
release for reconciliation to net income.
2 Non-GAAP measure. See end of this
release for reconciliation to Costs applicable to sales.
3 Outlook constitutes forward-looking
statements, which are subject to risk and uncertainties. See
Cautionary note at the end of this release.
4 Such policy is non-binding; declaration
of future dividends remains subject to approval and discretion of
the Board of Directors.
Operating Results Table
First Quarter Consolidated and
Attributable Production and Consolidated CAS and AISC
Results
Region
Q1
2014ConsolidatedProduction
Q1
2014AttributableProduction
Q1
2014ConsolidatedCAS
Q1
2014ConsolidatedAISCa
(Kozs, Kt) (Kozs, Kt) ($/oz,
$/lb) ($/oz, $/lb) Carlin 228 228 $842 $956
Phoenixb 53 53 $625 $818 Twin Creeksc 96 96 $536 $874 La Herradurad
28 28 $671 $1,087
North America
405 405 $726
$958 Yanacochae 208 107 $1,075 $1,364 La Zanjaf n/a
15 n/a n/a
South America
208 122 $1,075
$1,403 Boddington 174 174 $851 $970 Tanami 84 84 $681 $963
Jundee 63 63 $667 $841 Waihi 27 27 $753 $800 KCGMd 90 90 $839 $880
Duketonf n/a 12 n/a n/a
Australia/New Zealand 438 450
$783 $942 Batu Hijau,
Indonesiae 16 8
$1,283 $2,167 Ahafo 105 105 $554 $864 Akyem
120 120 $311 $361
Africa
225 225 $428 $616
Total Gold 1,292
1,210
$751 $1,034 Phoenix 6 6 $2.39 $2.55
Boddington 8 8 $2.63 $3.27 Batu Hijaue 21 10
$2.99 $4.63
Total Copper 35
24 $2.71 $3.67
aAll-in sustaining cost (“AISC”) is a
non-GAAP metric defined as the sum of cost applicable to sales
(including all direct and indirect costs related to current gold
production incurred to execute on the current mine plan),
remediation costs (including operating accretion and amortization
of asset retirement costs), G&A, exploration expense, advanced
projects and R&D, treatment and refining costs, other expense,
net of one-time adjustments and sustaining capital.
bIncludes Lone Tree operations.
cIncludes GTRJV operations.
dBoth consolidated and attributable
production are shown on a pro-rata basis with a 44% ownership
interest for La Herradura and a 50% ownership for KCGM.
eConsolidated production for Yanacocha and
Batu Hijau are presented on a total production basis for the mine
site; whereas attributable production represents a 51.35% ownership
interest for Yanacocha, and a 48.5% interest for Batu Hijau.
fLa Zanja and Duketon are not included in the consolidated figures
above; attributable production figures are presented based upon a
46.94% ownership interest at La Zanja and a 19.25% ownership
interest in Duketon.
Outlook Tables
2014 Consolidated and Attributable
Production, CAS, AISC, and Capital Outlooka
Region
2014ConsolidatedProduction
2014AttributableProduction
2014ConsolidatedCAS
2014
All-inSustainingCostsb
2014ConsolidatedCapital
(Kozs, Kt) (Kozs, kt) ($/oz,
$/lb) ($/oz, $/t)
Expenditures($M)
Carlin 830 - 910 830 - 910 $790 - $860 $275 - $300 Phoenixc 195 -
215 195 - 215 $655 - $715 $30 - $40 Twin Creeksd 330 - 360 330 -
360 $550 - $600 $110 - $130 La Herradurae 185 - 200 185 - 200 $800
- $875 $90 - $100 Other North America
$20 - $30
North America
1,550 - 1,650 1,550 - 1,650
$720 - $790 $1,045 - $1,135 $540 -
$600 Yanacochaf 895 - 985 460 - 500 $725 - $790 $180 - $200 La
Zanjag 50 - 60 Other South America
$25 - $50
South America
895 - 985 510 - 560 $725 -
$790 $1,115 - $1,205 $200 - $250
Boddington 665 - 725 665 - 725 $880 - $960 $100 - $115 Tanami 300 -
325 300 - 325 $750 - $825 $90 - $100 Jundee 210 - 230 210 - 230
$765 - $835 $25 - $35 Waihi 100 - 115 100 - 115 $755 - $825 $10 -
$20 KCGMe 300 - 330 300 - 330 $990 - $1,080 $30 - $40 Duketong 55 -
65 Other Australia/NZ
$5 - $15
Australia/New Zealand
1,600 - 1,700 1,650 - 1,750 $855 -
$930 $1,045 - $1,135 $275 - $300
Batu Hijau, Indonesiah 135 - 150
60 - 65 $630 - $690 $945 -
$1,025 $125 - $150 Ahafo 375 - 410 375 - 410 $580
- $650 $100 - $115 Akyem 415 - 460 415 - 460
$435 - $495 $15 - $25
Africa
790 - 870 790 - 870 $510 - $555
$690 - $755 $115 - $140 Corporate/Other
$20
- $25
Total Gold 5,000 - 5,350 4,625
- 4,900 $740 - $790 $1,075 - $1,175
$1,300 - $1,400 Phoenix 15 - 25 15 - 25 $2.25 - $2.50
Boddington 25 - 35 25 - 35 $2.50 - $2.80 Batu Hijauh 110 -
125 45 - 55 $1.75 - $2.00
Total Copper 160 - 175 95 - 110
$2.00 - $2.25 $2.75 - $2.95
aThe outlook ranges presented herein represent forward
looking statements, which are subject to certain risks and
uncertainties. See cautionary statement at the end of this release.
Additionally, individual site ranges in the table above may not sum
to total regional or Company levels to provide for portfolio
flexibility. bAll-in sustaining cost (“AISC”) is a non-GAAP metric
defined as the sum of cost applicable to sales (including all
direct and indirect costs related to current gold production
incurred to execute on the current mine plan), remediation costs
(including operating accretion and amortization of asset retirement
costs), G&A, exploration expense, advanced projects and
R&D, treatment and refining costs, other expense, net of
one-time adjustments and sustaining capital.
cIncludes Lone Tree operations.
dIncludes GTRJV operations.
eBoth consolidated and attributable
production are shown on a pro-rata basis with a 44% ownership
interest for La Herradura and a 50% ownership for KCGM.
fConsolidated production for Yanacocha is
presented on a total production basis for the mine site; whereas
attributable production represents a 51.35% ownership interest.
gLa Zanja and Duketon are not included in the consolidated figures
above; attributable production figures are presented based upon a
46.94% ownership interest at La Zanja and a 19.25% ownership
interest in Duketon.
hConsolidated production for Batu Hijau is
presented on a total production basis for the mine site; whereas
attributable production represents an expected 44.5625% ownership
interest in 2014 outlook (which assumes completion of the remaining
share divestiture). This outlook remains subject to change pending
clarification regarding the export regulations issued by the
Government of Indonesia, which have the potential to impact future
operating plans. See page 5 under the heading Indonesia Update for
additional information. The Company’s ability to achieve 2014
outlook and estimates assumes the continuation of current operating
plans, receipt of export approvals and other
factors. Additionally, for a discussion of factors which
could impact future financial performance and operating results in
Indonesia, see Item 1A, under the heading “Risk Factors,” of the
Company’s Form 10-K, filed on February 21, 2014.
Consolidated and Attributable
Production (Moz, kt)
2014 2015
2016 Outlook
Outlook Outlook Gold
(Consolidated Moz) 5.0 – 5.4 5.5 – 5.9
5.5 – 5.9
Gold (Attributable Moz)
4.6 – 4.9 4.8 – 5.2 4.8 – 5.2
Copper (Consolidated kt) 160 – 175
280 – 295 225 – 240
Copper
(Attributable kt) 95 - 110 145 - 160
125 – 140
Consolidated CAS ($/oz, $/lb)
2014 2015 2016 Region
Outlook Outlook
Outlook North America $720 - $790
$740 - $810 $680 - $740
South
America $725 - $790 $560 - $615
$920 - $1,010
Australia/New Zealand
$855 - $930 $830 - $910 $850 -
$925
Batu Hijau, Indonesia $630 - $690
$380 - $420 $440 - $480
Africa
$510 - $555 $695 - $760 $730 -
$800
Total Gold $740 - $790
$690 - $740 $740 - $790 Total
Copper $2.00 - $2.25
$1.20 - $1.45 $1.40 - $1.65
Consolidated AISC ($/oz, $/lb)
2014 2015 2016 Region
Outlook Outlook
Outlook North America $1,045 - $1,135
$955 - $1,045 $835 - $925
South
America $1,115 - $1,205 $900 - $990
$1,450 - $1,540
Australia/New Zealand
$1,045 - $1,135 $975 - $1,065
$985 - $1,075
Batu Hijau, Indonesia $945 -
$1,025 $510 - $590 $575 - $655
Africa $690 - $755 $875 - $955
$885 - $965
Total Gold $1,075
- $1,175 $950 - $1,050
$985 - $1,085 Total Copper $2.75 -
$2.95 $1.60 - $1.85 $1.80
- $2.05
Consolidated Capital Expenditures
($M)
2014 2015 2016 Region
Outlook Outlook
Outlook North America $540 - $600
$430 - $475 $270 - $295
South
America $200 - $250 $140 - $155
$165 - $180
Australia/New Zealand
$275 - $300 $220 - $245 $190 -
$210
Batu Hijau, Indonesia $125 - $150
$130 - $145 $120 - $130
Africa
$115 - $140 $80 - $90 $80 - $90
Total $1,300 - $1,400
$1,000 - $1,100 $900 - $1,000
2014 Expense Outlook Description
2014ConsolidatedExpenses
($M)
General & Administrative $175 -
$200 Other Expense $150 - $175 Interest Expense $325 - $350
DD&A $1,050 - $1,125 Exploration and Projects $400 - $450
Sustaining Capital $1,200 - $1,300 Tax Rate 37% - 40%
NEWMONT MINING CORPORATION CONDENSED
CONSOLIDATED STATEMENTS OF INCOME (unaudited, in millions
except per share) Three Months Ended
March 31, 2014 2013 Sales $ 1,764 $
2,188 Costs and expenses Costs applicable to sales (1) 1,083
1,057 Amortization 298 267 Reclamation and remediation 20 18
Exploration 34 59 Advanced projects, research and development 42 52
General and administrative 45 56 Other expense, net 52
100 1,574 1,609
Other income (expense) Other income, net 46 26 Interest expense,
net (93 ) (65 ) (47 ) (39 ) Income
before income and mining tax and other items 143 540 Income and
mining tax expense (78 ) (180 ) Equity income (loss) of affiliates
- (4 ) Income from continuing operations 65
356 Income (loss) from discontinued operations (17 )
- Net income 48 356 Net loss (income) attributable to
noncontrolling interests 52 (42 ) Net income
attributable to Newmont stockholders $ 100 $ 314
Net income (loss) attributable to Newmont stockholders:
Continuing operations $ 117 $ 314 Discontinued operations
(17 ) - $ 100 $ 314 Income (loss) per
common share Basic: Continuing operations $ 0.23 $ 0.63
Discontinued operations (0.03 ) - $ 0.20
$ 0.63 Diluted: Continuing operations $ 0.23 $ 0.63
Discontinued operations (0.03 ) - $ 0.20
$ 0.63 Cash dividends declared per common
share $ 0.150 $ 0.425
__________
(1) Excludes Amortization and Reclamation
and remediation.
NEWMONT MINING CORPORATION CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited, in
millions) Three Months Ended March 31,
2014 2013 Operating activities: Net income $ 48 $ 356
Adjustments: Amortization 298 267 Stock based compensation and
other non-cash benefits 13 19 Reclamation and remediation 20 18
Loss (income) from discontinued operations 17 - Impairment of
marketable securities 1 4 Deferred income taxes 35 (11 ) Gain on
asset and investment sales, net (50 ) (1 ) Other operating
adjustments and write-downs 151 74 Net change in operating assets
and liabilities (350 ) (287 ) Net cash provided from
continuing operations 183 439 Net cash used in discontinued
operations (3 ) (6 ) Net cash provided from
operations 180 433 Investing
activities: Additions to property, plant and mine development (235
) (510 ) Acquisitions, net (28 ) (8 ) Sale of marketable securities
25 1 Purchases of marketable securities (1 ) (1 ) Proceeds from
sale of other assets 70 25 Other (9 ) (14 ) Net cash
used in investing activities (178 ) (507 ) Financing
activities: Proceeds from debt, net 3 80 Proceeds from stock
issuance, net - 1 Sale of noncontrolling interests - 32 Acquisition
of noncontrolling interests (2 ) (6 ) Dividends paid to common
stockholders (77 ) (211 ) Other (4 ) (1 ) Net cash
provided from (used in) financing activities (80 )
(105 ) Effect of exchange rate changes on cash (2 )
(4 ) Net change in cash and cash equivalents (80 ) (183 ) Cash and
cash equivalents at beginning of period 1,555
1,561 Cash and cash equivalents at end of period $ 1,475
$ 1,378
NEWMONT MINING
CORPORATION CONDENSED CONSOLIDATED BALANCE
SHEETS (unaudited, in millions) At March
31, At December 31, 2014 2013
ASSETS Cash and cash equivalents $ 1,475 $ 1,555 Trade
receivables 206 230 Accounts receivable 319 252 Investments 83 78
Inventories 814 717 Stockpiles and ore on leach pads 760 805
Deferred income tax assets 239 246 Other current assets
1,351 1,006 Current assets 5,247 4,889
Property, plant and mine development, net 14,138 14,277 Investments
393 439 Stockpiles and ore on leach pads 2,723 2,680 Deferred
income tax assets 1,416 1,473 Other long-term assets 881
849 Total assets $ 24,798 $ 24,607
LIABILITIES Debt $ 615 $ 595 Accounts payable
463 478 Employee-related benefits 247 341 Income and mining taxes
27 13 Other current liabilities 1,532 1,313
Current liabilities 2,884 2,740 Debt 6,146 6,145 Reclamation
and remediation liabilities 1,519 1,513 Deferred income tax
liabilities 696 635 Employee-related benefits 333 323 Other
long-term liabilities 339 342 Total
liabilities 11,917 11,698
EQUITY Common stock 798 789 Additional paid-in capital 8,458
8,441 Accumulated other comprehensive income (loss) (205 ) (182 )
Retained earnings 968 945 Newmont
stockholders’ equity 10,019 9,993 Noncontrolling interests
2,862 2,916 Total equity 12,881
12,909 Total liabilities and equity $ 24,798 $
24,607
Regional Operating Statistics
Production Statistics Summary
Three Months Ended March
31, 2014 2013
Consolidated gold ounces
produced (thousands): North America Carlin
228
231 Phoenix
53 51 Twin Creeks
96 99 La Herradura
28 55
405 436
South America Yanacocha
208 285
Australia/New Zealand Boddington
174 177 Tanami
84 60 Jundee
63 76 Waihi
27 30 Kalgoorlie
90 78
438 421
Indonesia Batu Hijau
16 14
Africa Ahafo
105 125 Akyem
120 -
225 125
1,292 1,281
Consolidated copper pounds produced (millions): Phoenix
12 7 Boddington
17 18 Batu Hijau
48 40
77 65
Consolidated copper tonnes produced
(thousands): Phoenix
6 3 Boddington
8 8 Batu
Hijau
21 18
35 29
Three Months Ended March 31, 2014 2013
Attributable gold ounces produced (thousands):
North America
Carlin
228 231 Phoenix
53 51 Twin Creeks
96 99
La Herradura
28 55
405 436
South America
Yanacocha
107 147 Other South America Equity Interests
15 15
122 162
Australia/New Zealand Boddington
174 177 Tanami
84 60 Jundee
63 76 Waihi
27 30 Kalgoorlie
90 78 Other Australia/New Zealand
Equity Interests
12 14
450 435
Indonesia Batu
Hijau
8 7
Africa Ahafo
105 125 Akyem
120 -
225 125
1,210 1,165
Attributable
copper pounds produced (millions): Phoenix
12 7
Boddington
17 18 Batu Hijau
23 20
52 45
Attributable copper tonnes produced (thousands): Phoenix
6 3 Boddington
8 8 Batu Hijau
10 9
24
20
Costs Applicable to Sales Three
Months Ended March 31, 2014 2013
Gold
Costs Applicable to Sales ($/ounce)(1)
North America
Carlin $
842 $ 806 Phoenix
625 1,199 Twin Creeks
536 544 La Herradura
671 717
726 766
South America Yanacocha
1,075
576
Australia/New Zealand Boddington
851 873
Tanami
681 1,247 Jundee
667 710 Waihi
753 920
Kalgoorlie
839 1,006
783 922
Indonesia Batu Hijau
1,283 993
Africa
Ahafo
554 555 Akyem
311 -
428
555
Average $
751 $ 760
Attributable to
Newmont $
722 $ 781
Copper
Costs Applicable to Sales ($/pound)(1) Phoenix $
2.39
$ 3.20 Boddington
2.63 2.35 Batu Hijau
2.99
2.05
Average $
2.71 $ 2.27
Attributable to
Newmont $
2.63 $ 2.34 (1)Consolidated Costs applicable
to sales excludes Amortization and Reclamation and remediation.
Capital Expenditures Three Months
Ended March 31, 2014 2013
Consolidated Capital
Expenditures ($ million) North America Nevada $
42 $ 46 Phoenix
7 31 Twin Creeks
32 25 La
Herradura
6 19 Other North America
5 4
92 125
South America Yanacocha
13 48 Other South America
7 86
20 134
Australia/New Zealand Boddington
20 25 Kalgoorlie
20 23 Jundee
7 13 Tanami
3 3 Waihi
1 1 Other Australia/New Zealand
1 1
52 66
Indonesia Batu
Hijau
15 23
15 23
Africa Ahafo
22 60 Akyem
1 66
23 126 Corporate and Other
6
23
Total - Accrual Basis $
209 $ 497
Change
in Capital Accrual 26 13
Total - Cash
Basis $
235 $ 510
Attributable to Newmont (Accrual
Basis) $
191 $ 420
Supplemental Information
Non-GAAP Financial Measures
Non-GAAP financial measures are intended to provide additional
information only and do not have any standard meaning prescribed by
generally accepted accounting principles (“GAAP”). These measures
should not be considered in isolation or as a substitute for
measures of performance prepared in accordance with GAAP.
Reconciliation of Adjusted Net Income (loss) to GAAP Net
Income (loss)
Management of the Company uses Adjusted net income to evaluate
the Company’s operating performance, and for planning and
forecasting future business operations. The Company believes the
use of Adjusted net income allows investors and analysts to compare
results of the continuing operations of the Company and its direct
and indirect subsidiaries relating to the production and sale of
minerals to similar operating results of other mining companies, by
excluding exceptional or unusual items. Management’s determination
of the components of Adjusted net income are evaluated periodically
and based, in part, on a review of non-GAAP financial measures used
by mining industry analysts. Net income attributable to Newmont
stockholders is reconciled to Adjusted net income as follows:
Three Months Ended March 31, 2014
2013 Net income attributable to Newmont stockholders $ 100 $
314 Discontinued operations loss 17 - Restructuring and other 3 5
Impairments 1 4 Asset Sales (13 ) - TMAC transaction costs -
30 Adjusted net income $ 108 $ 353
Adjusted net income per share, basic $ 0.22 $ 0.70 Adjusted
net income per share, diluted $ 0.22 $ 0.71
CAS per Ounce/Pound
Costs applicable to sales per ounce/pound are non-GAAP financial
measures. These measures are calculated by dividing the costs
applicable to sales of gold and copper by gold ounces or copper
pounds sold, respectively. These measures are calculated on a
consistent basis for the periods presented on both a consolidated
and attributable to Newmont basis. Attributable costs applicable to
sales are based on our economic interest in production from our
mines. For operations where we hold less than a 100 percent
economic share in the production, we exclude the share of gold or
copper production attributable to the non-controlling interest. We
include attributable costs applicable to sales per ounce/pound to
provide management, investors and analysts with information with
which to compare our performance to other gold producers. Costs
applicable to sales per ounce/pound 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.
Net attributable costs applicable to sales per ounce measures
the benefit of copper produced in conjunction with gold, as a
credit against the cost of producing gold. A number of other gold
producers present their costs net of the contribution from copper
and other non-gold sales. We believe that including a measure on
this basis provides management, investors and analysts with
information with which to compare our performance to other gold
producers, and to better assess the overall performance of our
business. In addition, this measure provides information to enable
investors and analysts to understand the importance of associated
non-gold revenues to our cost structure.
The following tables reconcile these non-GAAP measures to the
most directly comparable GAAP measures.
Costs applicable to sales per ounce/pound
Gold Copper Three Months Ended March
31, Three Months Ended March 31, 2014
2013 2014 2013 Costs applicable
to sales: Consolidated per financial statements $ 960 $ 951 $ 123 $
106 Noncontrolling interests(1) (112 ) (82 )
(29 ) (23 ) Attributable to Newmont $ 848 $ 869
$ 94 $ 83 Gold/Copper sold (thousand
ounces/million pounds): Consolidated 1,278 1,252 45 47
Noncontrolling interests(1) (103 ) (139 ) (10
) (12 ) Attributable to Newmont 1,175
1,113 35 35 Costs
applicable to sales per ounce/pound: Consolidated $ 751 $ 760 $
2.71 $ 2.27 Attributable to Newmont $ 722 $ 781 $ 2.63 $ 2.34
Net attributable costs applicable to sales per
ounce Three Months Ended March 31, 2014
2013 Attributable costs applicable to sales: Gold $
848 $ 869 Copper 94 83 942
952 Copper revenue: Consolidated (113 )
(146 ) Noncontrolling interests(1) 22 36
(91 ) (110 ) Net attributable costs applicable
to sales $ 851 $ 842 Attributable gold ounces
sold (thousands) 1,174 1,113 Net attributable costs
applicable to sales per ounce $ 725 $ 757 (1)Relates to
partners' interests in Batu Hijau and Yanacocha.
All-In Sustaining Costs
Newmont has worked to develop a metric that expands on GAAP
measures such as cost of goods sold and non-GAAP measures to
provide visibility into the economics of our gold mining operations
related to expenditures, operating performance and the ability to
generate cash flow from operations.
Current GAAP-measures used in the gold industry, such as cost of
goods sold, do not capture all of the expenditures incurred to
discover, develop, and sustain gold production. Therefore, we
believe that All-in sustaining costs and attributable All-in
sustaining costs are non-GAAP measures that provide additional
information to management, investors, and analysts that aid in the
understanding of the economics of our operations and performance
compared to other gold producers and in the investor’s visibility
by better defining the total costs associated with producing
gold.
All-in sustaining cost (“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 International Financial Reporting Standards (“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 capital 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:
Cost Applicable to Sales - Includes all direct and indirect
costs related to current gold production incurred to execute the
current mine plan. Costs Applicable to Sales (“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 Amortization and Reclamation
and remediation, which is consistent with our presentation of CAS
on the Statement of Consolidated Income. In determining All-in
sustaining costs, 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 Statement of Consolidated Income less
the amount of CAS attributable to the production of copper at our
Phoenix, Boddington, and Batu Hijau mines. The copper CAS at those
mine sites is disclosed in Note 3 – Segments that accompanies the
Consolidated Financial Statements. The allocation of CAS between
gold and copper at the Phoenix, Boddington, and Batu Hijau mines is
based upon the relative sales percentage of copper and gold sold
during the period.
Remediation Costs - Includes accretion expense related to asset
retirement obligations (“ARO”) and the amortization of the related
Asset Retirement Cost (“ARC”) for the Company’s operating
properties recorded as an ARC asset. Accretion related to ARO and
the amortization of the ARC assets for reclamation and remediation
do not reflect annual cash outflows but are calculated in
accordance with GAAP. The accretion and amortization reflect the
periodic costs of reclamation and remediation associated with
current gold production and are therefore included in the measure.
The allocation of these costs to gold and copper is determined
using the same allocation used in the allocation of CAS between
gold and copper at the Phoenix, Boddington, and Batu Hijau
mines.
Advanced Projects and Exploration - Includes incurred expenses
related to projects that are designed to increase or enhance
current gold production and gold exploration. We note that as
current resources are depleted, exploration and advance projects
are necessary for us to replace the depleting reserves or enhance
the recovery and processing of the current reserves. As this
relates to sustaining our gold production, and is 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 Company’s Statement of Consolidated Income less
the amount attributable to the production of copper at our Phoenix,
Boddington, and Batu Hijau mines. The allocation of these costs to
gold and copper is determined using the same allocation used in the
allocation of CAS between gold and copper at the Phoenix,
Boddington, and Batu Hijau mines.
General and Administrative - Includes cost related to
administrative tasks not directly related to current gold
production, but rather related to support 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.
Other Expense, net - Includes costs related to regional
administration and community development to support current gold
production. We exclude certain exceptional or unusual expenses from
Other expense, net, such as restructuring, as these are not
indicative to sustaining our current gold operations. Furthermore,
this adjustment to Other expense, net is also consistent with the
nature of the adjustments made to Net income (loss) as disclosed in
the Company’s non-GAAP financial measure Adjusted net income
(loss). The allocation of these costs to gold and copper is
determined using the same allocation used in the allocation of CAS
between gold and copper at the Phoenix, Boddington, and Batu Hijau
mines.
Treatment and Refining Costs - Includes costs paid to smelters
for treatment and refining of our concentrates to produce the
salable precious metal. These costs are presented net as a
reduction of Sales.
Sustaining Capital - We determined sustaining capital as those
capital expenditures that are necessary to maintain current gold
production and execute the current mine plan. Capital expenditures
to develop new operations, or related to projects at existing
operations where these projects will enhance gold production or
reserves, are considered development. We determined the breakout of
sustaining and development capital costs based on a systematic
review of our project portfolio in light of the nature of each
project. Sustaining capital costs are relevant to the AISC metric
as these are needed to maintain the Company’s current gold
operations and provide improved transparency related to our ability
to finance these expenditures from current operations. The
allocation of these costs to gold and copper is determined using
the same allocation used in the allocation of CAS between gold and
copper at the Phoenix, Boddington, and Batu Hijau mines.
Three Months EndedMarch 31,
2014
CostsApplicabletoSales(1)(2)(3)
RemediationCosts(4)
AdvancedProjects
andExploration
General andAdministrative
OtherExpense,Net(5)
TreatmentandRefiningCosts
SustainingCapital(6)
All-InSustainingCosts
Ounces(000)/Pounds(millions)Sold(7)
All-InSustainingCostsper oz/lb
GOLD Carlin $ 192 $ 1 $ 4 $ - $ 1 $ - $ 20 $ 218 228 $ 956
Phoenix 34 - 1 - 1 2 7 45 55 818 Twin Creeks 55 1 1 - 1 - 32 90 103
874 La Herradura 16 1 4 - - - 4 25 23 1,087 Other North America
- - 6 - 3 - 5
14 - - North America 297 3 16
- 6 2 68 392 409 958
Yanacocha 221 30 7 - 9 - 14 281 206 1,364 Other South
America - - 8 - - -
- 8 - - South America 221 30
15 - 9 - 14 289 206
1,403 Attributable to Newmont 150 106 1,415
Boddington 142 3 - - 1 1 15 162 167 970 Tanami 55 1 1 - 1 -
20 78 81 963 Jundee 42 3 1 - - - 7 53 63 841 Waihi 19 - - - - - 1
20 25 800 Kalgoorlie 77 1 1 - - - 2 81 92 880 Other Australia/New
Zealand - - 1 - 8 -
- 9 - - Australia/New Zealand 335
8 4 - 10 1 45 403
428 942 Batu Hijau 8 1 -
- 1 1 2 13 6 2,167 Indonesia
8 1 - - 1 1 2
13 6 2,167 Attributable to Newmont 7 3
2,167 Ahafo 61 1 9 - 3 - 21 95 110 864 Akyem 38 - - - 3 - 2
43 119 361 Other Africa - - 2 -
1 - - 3 - - Africa 99 1
11 - 7 - 23 141 229
616 Corporate and Other - - 29
45 6 - 4 84 - - Total
Gold 960 43 75 45 39 4
156 1,322 1,278 1,034 Attributable to Newmont
$ 1,177 1,175 $ 1,002
COPPER Phoenix 26 - - - - 1 1 $
28 11 $ 2.55 Boddington 40 1 - - - 5 3 49 15 3.27 Batu Hijau
57 5 1 - 7 5 13 88
19 4.63 Total Copper 123 6 1 -
7 11 17 165 45 3.67 Attributable
to Newmont $ 120 35 $ 3.43 Consolidated $ 1,083 $ 49 $ 76 $ 45 $ 46
$ 15 $ 173 $ 1,487 (1)
Excludes Amortization and Reclamation and
remediation.
(2) Includes by-product credits of $23. (3)
Includes planned stockpile and leach pad
inventory adjustments of $20 at Carlin, $2 at Twin Creeks, $35 at
Yanacocha, $25 at Boddington, and $29 at Batu Hijau.
(4) Remediation costs include operating accretion of $18 and
amortization of asset retirement costs of $31. (5) Other expense,
net is adjusted for restructuring of $7. (6) Excludes development
capital expenditures, capitalized interest, and the decrease in
accrued capital of $62. The following are major development
projects; Turf Vent Shaft, Conga, and Merian for 2014. (7) Excludes
attributable gold sales from La Zanja and Duketon.
Three Months EndedMarch 31,
2013
CostsApplicabletoSales(1)(2)(3)
RemediationCosts(4)
AdvancedProjects
andExploration
General
andAdministrative
OtherExpense,Net(5)
TreatmentandRefiningCosts
SustainingCapital(6)
All-InSustainingCosts
Ounces(000)/Pounds(millions)Sold(7)
All-InSustainingCostsper oz/lb
GOLD Carlin $ 179 $ 1 $ 11 $ - $ 2 $ - $ 34 $ 227 222 $
1,023 Phoenix 41 - 3 - 1 2 1 48 34 1,412 Twin Creeks 52 1 3 - 1 -
19 76 96 792 La Herradura 40 - 6 - - - 9 55 56 982 Other North
America - - 8 - 2 -
3 13 - - North America 312 2
31 - 6 2 66 419 408
1,027 Yanacocha 160 23 13 - 10 - 37 243 278 874 Other
South America - - 3 - - -
- 3 - - South America 160 23
16 - 10 - 37 246 278
885 Attributable to Newmont 127 143 888
Boddington 174 2 - - - 1 22 199 200 995 Tanami 75 1 2 - - - 23 101
60 1,683 Jundee 54 4 4 - - - 12 74 76 974 Waihi 28 1 1 - - - 2 32
30 1,067 Kalgoorlie 75 2 1 - - - 2 80 74 1,081 Other Australia/New
Zealand - - 4 - 9 -
1 14 - - Australia/New Zealand 406
10 12 - 9 1 62 500
440 1,136 Batu Hijau 7 - 1
- 2 1 3 14 7 2,000
Indonesia 7 - 1 - 2 1
3 14 7 2,000 Attributable to Newmont 7
3 2,000 Ahafo 66 1 13 - - - 42 122 119 1,025 Akyem -
- 3 - - - - 3 - - Other Africa - - 2 -
7 - - 9 - - Africa 66
1 18 - 7 - 42 134
119 1,126 Corporate and Other - -
27 56 6 - 2 91 - -
Total Gold 951 36 105 56 40
4 212 1,404 1,252 1,121 Attributable to
Newmont $ 1,278 1,113 $ 1,148
COPPER Phoenix 11 - 1 -
1 1 1 $ 15 4 $ 3.75 Boddington 48 1 - - - 5 5 59 20 2.95 Batu Hijau
47 2 5 - 5 6 20
85 23 3.70 Total Copper 106 3 6
- 6 12 26 159 47 3.38
Attributable to Newmont 115 35 $ 3.29 Consolidated $ 1,057 $
39 $ 111 $ 56 $ 46 $ 16 $ 238 $ 1,563 (1)
Excludes Amortization and Reclamation and
remediation.
(2) Includes by-product credits of $30. (3)
Includes stockpile and leach pad inventory
adjustments of $4 at Yanacocha, $1 at Tanami, and $2 at Waihi
(4) Remediation costs include operating accretion of $15 and
amortization of asset retirement costs of $24. (5) Other expense,
net is adjusted for restructuring of $9 and TMAC transaction costs
of $45. (6) Excludes development capital expenditures, capitalized
interest, and the decrease in accrued capital of $272. The
following are major development projects; Phoenix Copper Leach,
Turf Vent Shaft, Vista Vein, La Herradura Mill, Yanacocha Bio
Leach, Conga, Merian, Ahafo North, Ahafo Mill Expansion, Subika
Underground, and Akyem for 2013. (7) Excludes attributable gold
sales from La Zanja and Duketon.
Conference Call Information
A conference call will be held on Friday, April 25, 2014 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 800.369.1917 Intl Dial-In Number
210.234.0025 Leader Kirsten Benefiel Passcode Newmont Replay Number
800.685.9501 Intl Replay Number 203.369.3318 Replay Passcode 2014
Webcast
Details
URL
http://event.on24.com/r.htm?e=768036&s=1&k=599B4D88E5C120C46D61C5E8DBA322F3
The first quarter 2014 results and related financial and
statistical information will be available after the market close on
Thursday, April 24, 2014 on the “Investor Relations” section of the
Company’s web site, www.newmont.com. Additionally, the conference
call will be archived for a limited time on the Company’s
website.
Cautionary Statement Regarding Forward Looking Statements,
Including Outlook:
This 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. Such forward-looking statements
may include, without limitation: (i) estimates of future production
and sales; (ii) estimates of future costs applicable to sales and
All-in sustaining costs; (iii) estimates of future consolidated and
attributable capital expenditures; (iv) plans and expectations to
reduce costs and expenditures; (v) expectations regarding the
development, growth and exploration potential of the Company’s
projects; and (vi) expectations regarding the timing and/or
likelihood of closing the term loan. 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 the Company’s projects being consistent with current
expectations and mine plans, including without limitation receipt
of export approvals; (iii) political developments in any
jurisdiction in which the Company operates being consistent with
its current expectations; (iv) certain exchange rate assumptions
for the Australian dollar to the U.S. dollar, as well as other the
exchange rates being approximately consistent with current levels;
(v) certain price assumptions for gold, copper and oil; (vi) prices
for key supplies being approximately consistent with current
levels; and (vii) the accuracy of our current mineral reserve and
mineral resource estimates. Where the Company 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”. Such
risks include, but are not limited to, gold and other metals price
volatility, currency fluctuations, increased production costs and
variances in ore grade or recovery rates from those assumed in
mining plans, political and operational risks, community relations,
conflict resolution and outcome of projects or oppositions and
governmental regulation and judicial outcomes. For a more detailed
discussion of such risks and other factors, see the Company’s 2013
Annual Report on Form 10-K, filed on February 21, 2014, with the
Securities and Exchange Commission, as well as the Company’s other
SEC filings. 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.
Newmont Mining CorporationInvestor
ContactsKirsten Benefiel,
303.837.6117kirsten.benefiel@newmont.comorAllysa Howell,
303.837.5788allysa.howell@newmont.comorMedia
ContactsOmar Jabara,
303.837.5114omar.jabara@newmont.comorDiane Reberger,
303.967.9455diane.reberger@newmont.com
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