Company's second quarter results highlight resilient
operating model and significant leverage to rising gold prices from
diversified portfolio of world-class assets
Newmont Corporation (NYSE: NEM, TSX: NGT) (Newmont or the
Company) today announced second quarter 2020 results.
SECOND QUARTER 2020 HIGHLIGHTS
- Produced 1.3 million attributable ounces of gold* and reported
CAS* of $748 per ounce and AISC* of $1,097 per ounce and produced
138 thousand attributable gold equivalent ounces from
co-products
- Generated $668 million of cash from continuing operations and
$388 million of Free Cash Flow* while safely managing the ramp up
of operations in care and maintenance
- Reported $3.8 billion of consolidated cash with $6.7 billion of
liquidity and a net debt to adjusted EBITDA* ratio of 0.6x
- Declared second quarter dividend of $0.25 per share
- Returned >$2.0 billion to shareholders through dividends and
share buybacks since January 2019
“In the second quarter we delivered solid financial performance
with $984 million in adjusted EBITDA and $388 million in free cash
flow, both substantial increases over the prior year quarter. Our
focus remains on ensuring the health, safety and wellbeing of our
workforce and neighboring communities as we manage through the
Covid pandemic. I am very proud of our workforce for the agility
and resolve that they have demonstrated during these challenging
times," said Tom Palmer, President and Chief Executive Officer. "We
safely and efficiently executed restart plans at our mines
previously in care and maintenance and Newmont’s world-class
portfolio is well positioned to deliver an even stronger second
half of 2020. The ongoing favorable gold price environment
amplifies our free cash flow generation yet our discipline around
capital allocation will not change as we continue to invest in
profitable projects and provide shareholders industry-leading
returns while maintaining a strong balance sheet.”
- Tom Palmer, President and Chief Executive Officer
COVID-19 UPDATE
- Continued our wide-ranging controls at the Company's operations
and offices to put the health, safety, and overall wellbeing of
Newmont's people and communities above all else
- Implemented effective quarantine and contact tracing procedures
for positive cases
- Executed safe and efficient restart plans at all five sites
previously in care and maintenance, including Cerro Negro,
Yanacocha, Éléonore and Peñasquito and Musselwhite
- Delivered strong second quarter production despite a reduction
of ~300Kozs gold and ~100Koz of co-product GEOs from operational
downtime at sites in care and maintenance
- Incurred $195 million of care and maintenance costs during the
second quarter, which included wages, direct operating costs for
critical activities and non-cash depreciation
- Incurred $33 million of incremental Covid specific costs for
activities such as additional health and safety procedures,
increased transportation and community fund contributions
- Distributed $5.7 million to date from Newmont's $20 million
Global Community Support Fund focused on employee and community
health, food security and local economic resilience through
partnerships with local governments, medical institutions,
charities and non-governmental organizations
*See footnotes provided below, as well as the cautionary
statement at end of release regarding forward-looking statements,
including with respect to financial and operating outlook and
expected returns to shareholders.
SECOND QUARTER 2020 FINANCIAL AND PRODUCTION SUMMARY
Q2'20
Q1'20
Q2'19
Attributable gold production (million
ounces)
1.26
1.48
1.59
Gold costs applicable to sales (CAS) ($
per ounce)
$
748
$
781
$
759
Gold all-in sustaining costs (AISC) ($ per
ounce)
$
1,097
$
1,030
$
1,016
GAAP Net income (US $ millions)
$
412
$
837
$
1
Adjusted net income (US $ millions)
$
261
$
326
$
92
Adjusted EBITDA (US $ millions)
$
984
$
1,118
$
679
Cash flow from continuing operations (US $
millions)
$
668
$
939
$
301
Capital Expenditures (US $ millions)
$
280
$
328
$
380
Free cash flow (US $ millions)
$
388
$
611
$
(79)
Attributable gold production1 decreased 21 percent to
1,255 thousand ounces from the prior year quarter primarily due to
the sites in care and maintenance and the sale of Red Lake and
Kalgoorlie, partially offset by higher grades at Porcupine and
higher grades and increased throughput at Tanami.
Gold CAS2 decreased 24 percent to $940 million from the
prior year quarter due to the sites in care and maintenance and
Gold CAS per ounce improved one percent to $748 per ounce primarily
due to lower stockpile and leach pad inventory adjustments,
partially offset by lower ounces sold.
Gold AISC3 increased eight percent to $1,097 per ounce
from the prior year quarter primarily due to care and maintenance
costs, partially offset by lower sustaining capital spend.
Attributable gold equivalent ounce (GEO) production from
other metals increased to 138 thousand ounces primarily due to
the impact of the blockade at Peñasquito in North America last
year, partially offset by the classification of copper as a
by-product at Phoenix following the formation of Nevada Gold Mines,
and lower grade and throughput at Boddington. CAS from other
metals totaled $118 million for the quarter. CAS per
GEO2 improved by 58 percent to $555 per ounce from the prior
year quarter primarily due to higher sales at Peñasquito, partially
offset by higher mill maintenance costs at Boddington and the
classification of copper as a by-product at Phoenix. AISC per
GEO3 improved 41 percent to $974 per ounce primarily due to
lower CAS from other metals.
Net income (loss) from continuing operations attributable
to Newmont stockholders for the quarter was $412 million or $0.51
per diluted share, an increase of $411 million from the prior year
quarter primarily due to higher average realized gold prices, the
increase in fair value of investments, lower operating costs and
lower transaction and integration costs; partially offset by lower
sales volumes from certain sites in care and maintenance and the
sale of Kalgoorlie.
Adjusted net income4 was $261 million or $0.32 per
diluted share, compared to $92 million or $0.12 per diluted share
in the prior year quarter. The adjustments to net income of $0.19
primarily related to changes in the fair value of investments,
COVID-19 specific costs, valuation allowance and other tax
adjustments, and transaction and integration costs. Adjusted
EBITDA5 improved 45 percent to $984 million for the quarter,
compared to $679 million for the prior year quarter.
Revenue increased five percent from the prior year
quarter to $2,365 million primarily due to higher average realized
gold prices, partially offset by lower gold sales volumes.
Average realized price6 for gold was $1,724, an increase
of $407 per ounce over the prior year quarter; average realized
price for copper was $2.91, an increase of $0.43 per pound over the
prior year quarter; average realized price for silver was $14.70
per ounce, an increase of $0.50 per ounce over the prior year
quarter; average realized price for lead was $0.75 per pound, a
decrease of $0.01 per pound; average realized price for zinc was
$0.70 per pound, and there were no zinc sales in the prior year
quarter.
Capital expenditures7 decreased by 26 percent from the
prior year quarter to $280 million, primarily due to lower spend
from five operations being placed into care and maintenance, lower
sustaining capital spend from the sale of Red Lake and Kalgoorlie,
and reduced spending from the completion of Borden Underground,
Ahafo Mill Expansion, and other projects in 2019. Development
capital expenditures in 2020 primarily include advancing Tanami
Expansion 2, Yanacocha Sulfides, Ahafo North and Subika mining
method change, Musselwhite Materials Handling and conveyor
installation, Éléonore Lower Mine Material Handling System, Quecher
Main, and projects associated with the Company’s ownership interest
in Nevada Gold Mines.
Consolidated operating cash flow from continuing
operations increased 122 percent from the prior year quarter to
$668 million due to higher realized gold prices, partially offset
by lower sales volumes. Free Cash Flow8 also increased to
$388 million primarily due to higher operating cash flow and lower
capital expenditures.
Balance sheet ended the quarter with $3.8 billion of
consolidated cash and approximately $6.7 billion of liquidity;
reported net debt to adjusted EBITDA of 0.6x9.
Nevada Gold Mines (NGM) attributable gold production was
326 thousand ounces with CAS of $797 per ounce and AISC of $979 per
ounce for the second quarter 2020. EBITDA for NGM was $277
million.
PROJECTS UPDATE
Newmont’s capital-efficient project pipeline supports stable
production with improving margins and mine life. Funding for the
current development capital projects Tanami Expansion 2 and
Musselwhite Materials Handling has been approved and the projects
are in execution. 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 with
potential to extend mine life to 2040 through the addition of a
1,460 meter hoisting shaft and supporting infrastructure to achieve
3.5 million tonnes per year of production 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 beginning in 2023, and is
expected to reduce operating costs by approximately 10 percent.
Capital costs for the project are estimated to be between $700
million and $800 million.
- Musselwhite Materials Handling
(North America) improves material movement from Musselwhite’s two
main zones below Lake Opapimiskan. An underground shaft will hoist
ore from the underground crushers, reducing haulage distances and
ventilation costs. The project is 95 percent complete; however,
full commissioning has been delayed amidst the Covid pandemic as
Musselwhite operations were previously on care and maintenance. The
Company expects to commission the project upon completion of the
Musselwhite conveyor system by the end of 2020.
OUTLOOK
On May 19, Newmont provided revised 2020 outlook as the
Company's mines that were previously in care and maintenance began
ramping up. Today, the Company is reaffirming its latest 2020
production outlook and is providing additional details on its
regional and site-level guidance.
Newmont's 2020 attributable gold production remains at
approximately 6.0 million ounces and the Company expects to produce
approximately 1.0 million gold equivalent ounces from co-products.
Gold CAS has been lowered to $760 per ounce, while gold AISC is
unchanged at $1,015 per ounce on increased sustaining capital
spend.
Newmont continues to progress the majority of its development
and sustaining capital projects, including Tanami Expansion 2,
developing the sub-level shrinkage mining method at Subika
Underground and advancing laybacks at Boddington and Ahafo.
However, total 2020 capital expenditure is expected to be
approximately $1.4 billion due to reductions in non-essential
activities and changes to the development capital schedule for
Tanami Expansion 2, which defers some expenditure to 2021.
For exploration and advanced projects, approximately 80 percent
of the Company’s exploration budget is allocated to near-mine
activities and the majority of those programs continued through the
second quarter at sites that were operating. Newmont's 2020
exploration and advanced project spend has been lowered to
approximately $350 million as all Greenfield programs were
suspended and infill drilling programs were on hold at operations
in care and maintenance. The Company is currently ramping up
drilling programs and preparing to restart Greenfields activities
as soon as local restrictions are lifted in areas of Africa,
Australia and South America. Advanced project study work for
Yanacocha Sulfides and Ahafo North continues remotely.
Newmont will continue to maintain wide-ranging protective
measures for its workforce and neighboring communities, including
screening, physical distancing, deep cleaning, and avoiding
exposure for at-risk individuals. If at any point the Company
determines that continuing operations poses an increased risk to
our workforce or host communities, it will reduce operational
activities up to and including care and maintenance and management
of critical environmental systems. Newmont’s 2020 outlook assumes
operations continue throughout the remainder of the year without
major interruptions.
1
Attributable gold production for the
second quarter 2020 includes 74 thousand ounces from the Company’s
equity method investment in Pueblo Viejo (40%)
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).
6
Non-GAAP measure. See end of this release
for reconciliation to Sales.
7
Capital expenditures refers to Additions
to property plant and mine development from the Consolidated
Statements of Cash Flows.
8
Non-GAAP measure. See end of this release
for reconciliation to Net cash provided by operating
activities.
9
Non-GAAP measure. See end of this release
for reconciliation.
Newmont Outlook (+/-5%)
2020
Consolidated Production (koz)
5,900
Attributable Production* (koz)
6,000
Consolidated Gold CAS ($/oz)
760
Consolidated Gold All-in Sustaining Costs
($/oz)
1,015
Consolidated Co-products (GEOs koz)
1,010
Attributable Co-products (GEOs koz)
1,010
Consolidated GEO CAS ($/oz)
605
Consolidated GEO All-in Sustaining Costs
($/oz)
945
Consolidated Sustaining Capital
Expenditures ($M)
900
Consolidated Development Capital
Expenditures ($M)
475
Attributable Sustaining Capital
Expenditures ($M)
875
Attributable Development Capital
Expenditures ($M)
425
*Attributable gold production for 2020 includes 375,000 ounces
from the Company’s equity method investment in Pueblo Viejo
(40%).
2020 Regional Production And Cost
Overview:
Australia
Attributable Production (koz)
1,180
Attributable Co-products (GEOs koz)
130
Consolidated Gold CAS ($/oz)
700
Consolidated Gold All-in Sustaining Costs
($/oz)
900
Consolidated Sustaining Capital
Expenditures ($M)
205
Consolidated Development Capital
Expenditures ($M)
145
- 2020 production and cost outlook unchanged from previous
guidance.
- Full Potential at Boddington improves mining rates and grade
increases throughout the year with the three year stripping
campaign nearing completion in the South Pit and Tanami continues
to deliver solid performance.
- Development capital decreased by $125 million due to reductions
in non-essential activities being postponed and changes to the
development capital schedule for Tanami Expansion 2 which defers
some expenditure to 2021.
Africa
Attributable Production (koz)
850
Consolidated Gold CAS ($/oz)
710
Consolidated Gold All-in Sustaining Costs
($/oz)
870
Consolidated Sustaining Capital
Expenditures ($M)
90
Consolidated Development Capital
Expenditures ($M)
70
- 2020 production and cost outlook unchanged from previous
guidance.
- Africa benefits from a full year of production from the Ahafo
Mill Expansion which is offset by mine sequencing in both the
Subika and Awonsu open pits, a change in mining method at Subika
Underground and lower grades at Akyem.
North America
Attributable Production (koz)
1,410
Attributable Co-products (GEOs koz)
880
Consolidated Gold CAS ($/oz)
775
Consolidated Gold All-in Sustaining Costs
($/oz)
1,040
Consolidated Sustaining Capital
Expenditures ($M)
275
Consolidated Development Capital
Expenditures ($M)
70
- Revised 2020 outlook includes the impacts from Peñasquito,
Éléonore and Musselwhite being temporarily placed into care and
maintenance.
- The Musselwhite Materials Handling project is 95 percent
complete and the conveyor system is on track to be fully
commissioned by year end.
- Éléonore production and cost outlook reflects the ongoing work
to integrate the geotechnical model and updated Reserves to fully
optimize a life of mine plan and unlock additional value.
- Porcupine and CC&V outlook unchanged from previous
guidance.
South America
Attributable Production (koz)
1,135
Consolidated Gold CAS ($/oz)
815
Consolidated Gold All-in Sustaining Costs
($/oz)
1,105
Consolidated Sustaining Capital
Expenditures ($M)
110
Consolidated Development Capital
Expenditures ($M)
120
- Revised 2020 outlook includes the impacts from Cerro Negro and
Yanacocha being temporarily placed into care and maintenance.
- Cerro Negro production and cost outlook reflects the
Covid-related constraints on advancing mine development to access
to higher-grade ore originally planned for the fourth quarter of
2020.
Nevada Gold Mines (NGM)
Attributable Production (koz)
1,375
Consolidated Gold CAS ($/oz)
690
Consolidated Gold All-in Sustaining Costs
($/oz)
880
Consolidated Sustaining Capital
Expenditures ($M)
185
Consolidated Development Capital
Expenditures ($M)
45
- Production, CAS & AISC for the Company’s 38.5 percent
ownership interest in NGM unchanged, as provided by Barrick Gold
Corporation.
2020 Outlooka
2020 Outlook (+/-5%)
Consolidated Production (Koz,
GEOS Koz)
Attributable Production (Koz,
GEOs Koz)
Consolidated CAS
($/oz)
Consolidated All-In Sustaining
Costs b ($/oz)
Consolidated Sustaining
Capital Expenditures ($M)
Consolidated Development
Capital Expenditures ($M)
Attributable Sustaining
Capital Expenditures ($M)
Attributable Development
Capital Expenditures ($M)
North America
1,410
1,410
775
1,040
275
70
275
70
South America
1,030
1,135
815
1,105
110
120
90
80
Australia
1,180
1,180
700
900
205
145
205
145
Africa
850
850
710
870
90
70
90
70
Nevada Gold Minesc
1,375
1,375
690
880
185
45
185
45
Total Goldd
5,900
6,000
760
1,015
900
475
875
425
Total Co-productse
1,010
1,010
605
945
2020 Consolidated Expense Outlook ($M)
(+/-5%)
General & Administrative
265
Interest Expense
300
Depreciation and Amortization
2,250
Advanced Projects & Exploration
350
Adjusted Tax Rate f,g
38% - 42%
Federal Tax Rate g
29% - 33%
Mining Tax Rate g
8% - 10%
a 2020 outlook projections used in this presentation are
considered forward-looking statements and represent management’s
good faith estimates or expectations of future production results
as of July 30, 2020. Outlook is based upon certain assumptions,
including, but not limited to, metal prices, oil prices, certain
exchange rates and other assumptions. For example, 2020 Outlook
assumes $1,200/oz gold, $16/oz silver, $2.75/lb copper, $1.20/lb
zinc, $0.95/lb lead, $0.75 USD/AUD exchange rate, $0.77 USD/CAD
exchange rate and $60/barrel WTI; AISC and CAS estimates do not
include inflation, for the remainder of the year. Production, CAS,
AISC and capital estimates exclude projects that have not yet been
approved. 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 or AISC as used in the Company’s
Outlook is a non-GAAP metric; see below for further information and
reconciliation to consolidated 2020 CAS outlook.
c 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.
d Attributable gold production outlook includes the Company’s
equity investment (40%) in Pueblo Viejo with ~375Koz in 2020; does
not include the Company’s other equity investments. Attributable
gold production outlook represents the Company's 51.35% interest
for Yanacocha and a 75% interest for Merian.
e Gold equivalent ounces (GEO) is calculated as pounds or ounces
produced multiplied by the ratio of the other metal’s price to the
gold price, using Gold ($1,200/oz.), Copper ($2.75/lb.), Silver
($16/oz.), Lead ($0.95/lb.), and Zinc ($1.20/lb.) pricing.
f The adjusted tax rate excludes certain items such as tax
valuation allowance adjustments.
g Assuming average prices of $1,400 per ounce for gold, $16 per
ounce for silver, $2.75 per pound for copper, $0.95 per pound for
lead, and $1.20 per pound for zinc and achievement of current
production and sales volumes and cost estimates, we estimate our
consolidated adjusted effective tax rate related to continuing
operations for 2020 will be between 38%-42%.
2020 Site Outlooka as of July 30,
2020
Consolidated Production
(Koz)
Attributable Production
(Koz)
Consolidated CAS
($/oz)
Consolidated
All-In Sustaining Costs
b
($/oz)
Consolidated Sustaining
Capital Expenditures ($M)
Consolidated Development
Capital Expenditures ($M)
CC&V
285
285
1,000
1,175
35
—
Éléonore
190
190
920
1,350
40
10
Peñasquito
510
510
565
770
130
—
Porcupine
325
325
795
975
40
10
Musselwhite
95
95
1,230
2,020
30
50
Cerro Negro
250
250
785
1,100
40
30
Yanacocha c
335
175
975
1,430
20
90
Merian c
445
335
715
840
50
—
Pueblo Viejo
—
375
—
—
—
—
Boddington
700
700
855
1,015
115
15
Tanami
480
480
455
685
85
130
Other Australia
—
—
—
—
5
—
Ahafo
480
480
810
960
60
40
Akyem
365
365
575
695
30
5
Ahafo North
—
—
—
—
—
25
Nevada Gold Mines d
1,375
1,375
690
880
185
45
Corporate/Other
—
—
—
—
30
—
Peñasquito - Co-products (GEO) e
880
880
560
890
—
—
Boddington - Co-product (GEO) e
130
130
910
1,105
—
—
Peñasquito - Zinc (Mlbs)
360
360
Peñasquito - Lead (Mlbs)
190
190
Peñasquito - Silver (Moz)
28
28
Boddington - Copper (Mlbs)
55
55
a 2020 outlook projections shown above are considered
forward-looking statements and represent management’s good faith
estimates or expectations of future production results as of July
30, 2020. Outlook is based upon certain assumptions, including, but
not limited to, metal prices, oil prices, certain exchange rates
and other assumptions. For example, 2020 Outlook assumes $1,200/oz
gold, $16/oz silver, $2.75/lb copper, $1.20/lb zinc, $0.95/lb lead,
$0.75 USD/AUD exchange rate, $0.77 USD/CAD exchange rate and
$60/barrel WTI; AISC and CAS estimates do not include inflation,
for the remainder of the year. Production, CAS, AISC and capital
estimates exclude projects that have not yet been approved. 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 or AISC as used in the Company’s
Outlook is a non-GAAP metric; see below for further information and
reconciliation to consolidated 2020 CAS outlook.
c Consolidated production for Yanacocha and Merian is presented
on a total production basis for the mine site; attributable
production represents a 51.35% interest for Yanacocha and 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 Gold equivalent ounces (GEO) is calculated as pounds or ounces
produced multiplied by the ratio of the other metal’s price to the
gold price, using Gold ($1,200/oz.), Copper ($2.75/lb.), Silver
($16/oz.), Lead ($0.95/lb.), and Zinc ($1.20/lb.) pricing.
Three Months Ended June
30,
Six Months Ended June
30,
Operating Results
2020
2019
% Change
2020
2019
% Change
Attributable Sales (koz)
Attributable gold ounces sold 1
1,198
1,539
(22)
%
2,567
2,774
(7)
%
Attributable gold equivalent ounces
sold
213
93
129
%
532
144
269
%
Average Realized Price ($/oz,
$/lb)
Average realized gold price
$
1,724
$
1,317
31
%
$
1,652
$
1,310
26
%
Average realized copper price
$
2.91
$
2.48
17
%
$
2.21
$
2.68
(18)
%
Average realized silver price
$
14.70
$
14.20
4
%
$
14.35
$
14.20
1
%
Average realized lead price
$
0.75
$
0.76
(1)
%
$
0.68
$
0.76
(11)
%
Average realized zinc price
$
0.70
$
—
—
%
$
0.65
$
—
—
%
Attributable Production (koz)
North America 2
232
251
(8)
%
608
332
83
%
South America 2
136
260
(48)
%
371
445
(17)
%
Australia
294
359
(18)
%
552
699
(21)
%
Africa
193
277
(30)
%
379
508
(25)
%
Nevada 3
326
365
(11)
%
655
758
(14)
%
Total Gold (excluding equity method
investments)
1,181
1,512
(22)
%
2,565
2,742
(6)
%
Pueblo Viejo (40%) 4
74
75
(1)
%
169
75
125
%
Total Gold
1,255
1,587
(21)
%
2,734
2,817
(3)
%
North America
108
53
104
%
418
53
689
%
Australia
30
40
(25)
%
59
71
(17)
%
Nevada
—
18
(100)
%
—
35
(100)
%
Total Gold Equivalent Ounces
138
111
24
%
477
159
200
%
CAS Consolidated ($/oz, $/GEO)
North America
$
735
$
1,031
(29)
%
$
811
$
1,002
(19)
%
South America
$
781
$
651
20
%
$
796
$
618
29
%
Australia
$
719
$
724
(1)
%
$
724
$
740
(2)
%
Africa
$
696
$
602
16
%
$
715
$
598
20
%
Nevada
$
797
$
803
(1)
%
$
765
$
785
(3)
%
Total Gold
$
748
$
759
(1)
%
$
766
$
733
5
%
Total Gold (by-product)
$
684
$
772
(11)
%
$
711
$
732
(3)
%
North America
$
505
$
1,952
(74)
%
$
551
$
1,952
(72)
%
Australia
$
874
$
807
8
%
$
843
$
852
(1)
%
Nevada
$
—
$
871
(100)
%
$
—
$
810
(100)
%
Total Gold Equivalent Ounces
$
555
$
1,308
(58)
%
$
583
$
1,146
(49)
%
AISC Consolidated ($/oz, $/GEO)
North America
$
1,162
$
1,383
(16)
%
$
1,105
$
1,302
(15)
%
South America
$
1,233
$
827
49
%
$
1,087
$
780
39
%
Australia
$
907
$
890
2
%
$
927
$
894
4
%
Africa
$
877
$
810
8
%
$
902
$
794
14
%
Nevada
$
979
$
1,002
(2)
%
$
953
$
976
(2)
%
Total Gold
$
1,097
$
1,016
8
%
$
1,061
$
967
10
%
Total Gold (by-product)
$
1,104
$
1,047
5
%
$
1,070
$
979
9
%
North America
$
960
$
2,536
(62)
%
$
888
$
2,536
(65)
%
Australia
$
1,068
$
957
12
%
$
1,051
$
997
5
%
Nevada
$
—
$
1,037
(100)
%
$
—
$
959
(100)
%
Total Gold Equivalent Ounces
$
974
$
1,646
(41)
%
$
906
$
1,413
(36)
%
1 Attributable gold ounces from the Pueblo Viejo mine, an equity
method investment, are not included in attributable gold ounces
sold. 2 Includes sites acquired as part of the Newmont Goldcorp
transaction, effective April 18, 2019. 3 Newmont contributed its
existing Nevada mining operations in exchange for a 38.5% interest
in NGM, effective July 1, 2019. 4 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
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS
(unaudited, in millions except
per share)
Three Months Ended June
30,
Six Months Ended June
30,
2020
2019
2020
2019
Sales
$
2,365
$
2,257
$
4,946
$
4,060
Costs and expenses
Costs applicable to sales (1)
1,058
1,366
2,390
2,344
Depreciation and amortization
528
487
1,093
799
Reclamation and remediation
40
73
78
103
Exploration
26
69
70
110
Advanced projects, research and
development
26
32
53
59
General and administrative
72
81
137
140
Care and maintenance
125
—
145
—
Other expense, net
59
137
92
205
1,934
2,245
4,058
3,760
Other income (expense):
Gain on asset and investment sales,
net
(1
)
32
592
33
Other income, net
198
58
9
102
Interest expense, net of capitalized
interest
(78
)
(82
)
(160
)
(140
)
119
8
441
(5
)
Income (loss) before income and mining tax
and other items
550
20
1,329
295
Income and mining tax benefit
(expense)
(164
)
(20
)
(141
)
(145
)
Equity income (loss) of affiliates
29
26
66
21
Net income (loss) from continuing
operations
415
26
1,254
171
Net income (loss) from discontinued
operations
(68
)
(26
)
(83
)
(52
)
Net income (loss)
347
—
1,171
119
Net loss (income) attributable to
noncontrolling interests
(3
)
(25
)
(5
)
(57
)
Net income (loss) attributable to Newmont
stockholders
$
344
$
(25
)
$
1,166
$
62
Net income (loss) attributable to Newmont
stockholders:
Continuing operations
$
412
$
1
$
1,249
$
114
Discontinued operations
(68
)
(26
)
(83
)
(52
)
$
344
$
(25
)
$
1,166
$
62
Net income (loss) per common share
Basic:
Continuing operations
$
0.51
$
—
$
1.55
$
0.18
Discontinued operations
(0.08
)
(0.03
)
(0.10
)
(0.08
)
$
0.43
$
(0.03
)
$
1.45
$
0.10
Diluted:
Continuing operations
$
0.51
$
—
$
1.55
$
0.18
Discontinued operations
(0.08
)
(0.03
)
(0.10
)
(0.08
)
$
0.43
$
(0.03
)
$
1.45
$
0.10
(1) Excludes Depreciation and amortization and Reclamation and
remediation.
NEWMONT CORPORATION
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
(unaudited, in
millions)
Three Months Ended June 30,
Six Months Ended June 30,
2020
2019
2020
2019
Operating activities:
Net income (loss)
$
347
$
—
$
1,171
$
119
Adjustments:
Depreciation and amortization
528
487
1,093
799
Stock-based compensation
17
35
38
54
Reclamation and remediation
37
68
72
95
Net loss (income) from discontinued
operations
68
26
83
52
Deferred income taxes
(26
)
(34
)
(144
)
(13
)
Gain on asset and investment sales,
net
1
(32
)
(592
)
(33
)
Impairment of investments
—
—
93
1
Change in fair value of investments
(227
)
(35
)
(134
)
(56
)
Write-downs of inventory and stockpiles
and ore on leach pads
37
60
37
104
Charges from debt extinguishment
3
—
77
—
Other operating adjustments
28
(5
)
(69
)
12
Net change in operating assets and
liabilities
(145
)
(269
)
(118
)
(259
)
Net cash provided by (used in) operating
activities of continuing operations
668
301
1,607
875
Net cash provided by (used in) operating
activities of discontinued operations
(4
)
(2
)
(7
)
(5
)
Net cash provided by (used in) operating
activities
664
299
1,600
870
Investing activities:
Proceeds from sales of mining operations
and other assets, net
14
27
1,135
29
Additions to property, plant and mine
development
(280
)
(380
)
(608
)
(605
)
Proceeds from sales of investments
6
53
270
56
Return of investment from equity method
investees
—
80
43
80
Purchases of investments
(21
)
(33
)
(33
)
(86
)
Acquisitions, net (1)
—
121
—
121
Other
(3
)
28
32
26
Net cash provided by (used in) investing
activities
(284
)
(104
)
839
(379
)
Financing activities:
Repayment of debt
(90
)
(1,250
)
(1,160
)
(1,250
)
Proceeds from issuance of debt, net
—
—
985
—
Repurchases of common stock
—
—
(321
)
—
Dividends paid to common stockholders
(201
)
(590
)
(313
)
(666
)
Distributions to noncontrolling
interests
(42
)
(49
)
(88
)
(93
)
Funding from noncontrolling interests
27
20
55
46
Payments for withholding of employee taxes
related to stock-based compensation
(3
)
(6
)
(39
)
(45
)
Payments on lease and other financing
obligations
(17
)
(16
)
(33
)
(26
)
Other
35
(2
)
37
(2
)
Net cash provided by (used in) financing
activities
(291
)
(1,893
)
(877
)
(2,036
)
Effect of exchange rate changes on cash,
cash equivalents and restricted cash
4
1
—
(2
)
Net change in cash, cash equivalents and
restricted cash
93
(1,697
)
1,562
(1,547
)
Cash, cash equivalents and restricted cash
at beginning of period
—
3,639
2,349
3,489
Cash, cash equivalents and restricted cash
at end of period
$
93
$
1,942
$
3,911
$
1,942
Reconciliation of cash, cash equivalents
and restricted cash:
Cash and cash equivalents
$
3,808
$
1,827
$
3,808
$
1,827
Restricted cash included in Other current
assets
—
30
—
30
Restricted cash included in Other
non-current assets
103
85
103
85
Total cash, cash equivalents and
restricted cash
$
3,911
$
1,942
$
3,911
$
1,942
(1)
Acquisitions, net for the three and six
months ended June 30, 2019 is comprised of $138 cash and cash
equivalents acquired in the Newmont Goldcorp transaction, net of
$17 cash paid to Goldcorp shareholders as part of the purchase
consideration.
NEWMONT CORPORATION
CONDENSED CONSOLIDATED BALANCE
SHEETS
(unaudited, in
millions)
At June 30,
2020
At December 31, 2019
ASSETS
Cash and cash equivalents
$
3,808
$
2,243
Trade receivables
255
373
Investments
310
237
Inventories
961
1,014
Stockpiles and ore on leach pads
836
812
Other current assets
514
570
Current assets held for sale
—
1,023
Current assets
6,684
6,272
Property, plant and mine development,
net
24,676
25,276
Investments
3,003
3,199
Stockpiles and ore on leach pads
1,625
1,484
Deferred income tax assets
530
549
Goodwill
2,771
2,674
Other non-current assets
596
520
Total assets
$
39,885
$
39,974
LIABILITIES
Accounts payable
$
473
$
539
Employee-related benefits
288
361
Income and mining taxes payable
204
162
Lease and other financing obligations
98
100
Debt
552
—
Other current liabilities
763
880
Current liabilities held for sale
—
343
Current liabilities
2,378
2,385
Debt
5,478
6,138
Lease and other financing obligations
550
596
Reclamation and remediation
liabilities
3,550
3,464
Deferred income tax liabilities
2,273
2,407
Employee-related benefits
454
448
Silver streaming agreement
1,036
1,058
Other non-current liabilities
1,195
1,061
Total liabilities
16,914
17,557
Contingently redeemable noncontrolling
interest
43
47
EQUITY
Common stock
1,291
1,298
Treasury stock
(159
)
(120
)
Additional paid-in capital
18,130
18,216
Accumulated other comprehensive income
(loss)
(247
)
(265
)
Retained earnings
2,989
2,291
Newmont stockholders' equity
22,004
21,420
Noncontrolling interests
924
950
Total equity
22,928
22,370
Total liabilities and equity
$
39,885
$
39,974
Non-GAAP Financial Measures
Non-GAAP financial measures are intended to provide additional
information only and do not have any standard meaning prescribed by
U.S. 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.
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, see Note 13 to
the Condensed 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 June
30, 2020
Six Months Ended June
30, 2020
per share data (1)
per share data (1)
basic
diluted
basic
diluted
Net income (loss) attributable to Newmont
stockholders
$
344
$
0.43
$
0.43
$
1,166
$
1.45
$
1.45
Net loss (income) attributable to Newmont
stockholders from discontinued operations (2)
68
0.08
0.08
83
0.10
0.10
Net income (loss) attributable to Newmont
stockholders from continuing operations
412
0.51
0.51
1,249
1.55
1.55
(Gain) loss on asset and investment sales
(3)
1
—
—
(592
)
(0.73
)
(0.73
)
Change in fair value of investments
(4)
(227
)
(0.28
)
(0.28
)
(134
)
(0.17
)
(0.17
)
Impairment of investments (5)
—
—
—
93
0.11
0.11
Loss on debt extinguishment (6)
3
—
—
77
0.09
0.09
COVID-19 specific costs (7)
33
0.04
0.04
35
0.04
0.04
Goldcorp transaction and integration costs
(8)
7
0.01
0.01
23
0.03
0.03
Restructuring and other (9)
5
0.01
0.01
12
0.01
0.01
Impairment of long-lived assets (10)
5
0.01
0.01
5
0.01
0.01
Tax effect of adjustments (11)
32
0.04
0.03
125
0.17
0.17
Valuation allowance and other tax
adjustments, net (12)
(10
)
(0.01
)
(0.01
)
(306
)
(0.38
)
(0.38
)
Adjusted net income (loss) (13)
$
261
$
0.33
$
0.32
$
587
$
0.73
$
0.73
Weighted average common shares (millions):
(14)
803
805
805
806
(1)
Per share measures may not recalculate due
to rounding.
(2)
For additional information regarding our
discontinued operations, see Note 13 to our Condensed Consolidated
Financial Statements.
(3)
(Gain) loss on asset and investment sales,
included in Gain on asset and investment sales, net, primarily
represents a $493 gain on the sale of Kalgoorlie in January 2020, a
$91 gain on the sale of Continental and a $9 gain on the sale of
Red Lake in March 2020. For additional information, see Note 9 to
our Condensed Consolidated Financial Statements.
(4)
Change in fair value of investments,
included in Other income, net, primarily represents unrealized
holding gains and losses on marketable equity securities and our
investment instruments. For additional information regarding our
investments, see Note 19 to our Condensed Consolidated Financial
Statements.
(5)
Impairment of investments, included in
Other income, net, primarily represents the other-than-temporary
impairment of the TMAC investment recorded in March 2020.
(6)
Loss on debt extinguishment, included in
Other income, net, primarily represents losses on the
extinguishment of a portion of the 2022 Senior Notes and 2023
Senior Notes during March and April 2020.
(7)
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.
(8)
Goldcorp transaction and integration
costs, included in Other expense, net, primarily represents costs
incurred related to the Newmont Goldcorp transaction completed
during 2019 as well as subsequent integration costs.
(9)
Restructuring and other, included in Other
expense, net, primarily represents certain costs associated with
severance, legal and other settlements of $4 and $11, respectively.
Restructuring and other, included in Other income, net, primarily
represents pension settlements of $2 and $2, respectively. Amounts
are presented net of income (loss) attributable to noncontrolling
interests of $(1) and $(1), respectively.
(10)
Impairment of long-lived assets, included
in Other expense, net, represents non-cash write-downs of
long-lived assets.
(11)
The tax effect of adjustments, included in
Income and mining tax benefit (expense), represents the tax effect
of adjustments in footnotes (3) through (10), as described above,
and are calculated using the applicable regional tax rate.
(12)
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 and six months ended June 30, 2020 is due
to a net increase or (decrease) to net operating losses, tax credit
carryovers and other deferred tax assets subject to valuation
allowance of $(11) and $(120), respectively, the effects of changes
in foreign exchange rates on deferred tax assets and liabilities of
$(8) and $(187), respectively, changes to the reserve for uncertain
tax positions of $15 and $(9), respectively, and other tax
adjustments of $1 and $32, respectively. Total amount is presented
net of income (loss) attributable to noncontrolling interests of
$(7) and $(22), respectively.
(13)
Adjusted net income (loss) has not been
adjusted for $115 and $133 of cash and $68 and $74 of non-cash care
and maintenance costs, included in Care and maintenance and
Depreciation and amortization, respectively, which primarily
represent costs associated with our Musselwhite, Éléonore,
Peñasquito, Yanacocha and Cerro Negro sites being temporarily
placed into care and maintenance in response to the COVID-19
pandemic during a portion of the three and six months ended June
30, 2020, respectively. Amounts are presented net of income (loss)
attributable to noncontrolling interests of $10, $12, $2 and $3,
respectively.
(14)
Adjusted net income (loss) per diluted
share is calculated using diluted common shares, which are
calculated in accordance with U.S. GAAP.
Three Months Ended June
30, 2019
Six Months Ended June
30, 2019
per share data (1)
per share data (1)
basic
diluted
basic
diluted
Net income (loss) attributable to Newmont
stockholders
$
(25
)
$
(0.03
)
$
(0.03
)
$
62
$
0.10
$
0.10
Net loss (income) attributable to Newmont
stockholders from discontinued operations (2)
26
—
—
52
0.08
0.08
Net income (loss) attributable to Newmont
stockholders from continuing operations
1
—
—
114
0.18
0.18
Goldcorp transaction and integration costs
(3)
114
0.14
0.14
159
0.24
0.24
Change in fair value of investments
(4)
(35
)
(0.05
)
(0.05
)
(56
)
(0.09
)
(0.09
)
Reclamation and remediation charges
(5)
32
0.04
0.04
32
0.05
0.05
Loss (gain) on asset and investment sales,
net (6)
(30
)
(0.04
)
(0.04
)
(31
)
(0.05
)
(0.05
)
Nevada JV transaction and integration
costs (7)
11
0.02
0.02
23
0.05
0.05
Restructuring and other (8)
—
—
—
5
—
—
Impairment of long-lived assets (9)
—
—
—
1
—
—
Impairment of investments (10)
—
—
—
1
—
—
Tax effect of adjustments (11)
(5
)
—
—
(13
)
(0.02
)
(0.02
)
Valuation allowance and other tax
adjustments, net (12)
4
0.01
0.01
33
0.05
0.05
Adjusted net income (loss)
$
92
$
0.12
$
0.12
$
268
$
0.41
$
0.41
Weighted average common shares (millions):
(13)
766
768
651
652
(1)
Per share measures may not recalculate due
to rounding.
(2)
For additional information regarding our
discontinued operations, see Note 13 to our Condensed Consolidated
Financial Statements.
(3)
Goldcorp transaction and integration
costs, included in Other expense, net, primarily represents costs
incurred related to the Newmont Goldcorp transaction during
2019.
(4)
Change in fair value of investments,
included in Other income, net, primarily represents unrealized
holding gains and losses on marketable equity securities and our
investment instruments in Continental. For additional information
regarding our investment, see Note 19 to our Condensed Consolidated
Financial Statements.
(5)
Reclamation and remediation charges,
included in Reclamation and remediation, represent revisions to
remediation plans at the Company’s former historic mining
operations, including adjustments related to a review of the
project cost estimates at the Dawn remediation site and increased
water management costs at the Con Mine.
(6)
Loss (gain) on asset and investment sales,
included in Other income, net, primarily represents a gain on the
sale of exploration property in North America in 2019. Amounts are
presented net of income (loss) attributable to noncontrolling
interest of $2 and $2, respectively.
(7)
Nevada JV transaction and integration
costs, included in Other expense, net, primarily represents costs
incurred related to the Nevada JV Agreement, including hostile
defense fees, during 2019.
(8)
Restructuring and other, included in Other
expense, net, primarily represents certain costs associated with
severance, legal and other settlements.
(9)
Impairment of long-lived assets, included
in Other expense, net, represents non-cash write-downs of
long-lived assets.
(10)
Impairment of investments, included in
Other income, net, represents other-than-temporary impairments of
other investments.
(11)
The tax effect of adjustments, included in
Income and mining tax benefit (expense), represents the tax effect
of adjustments in footnotes (3) through (10), as described above,
and are calculated using the applicable regional tax rate.
(12)
Valuation allowance and other tax
adjustments, included in Income and mining tax benefit (expense),
is recorded for items such as foreign tax credits, alternative
minimum tax credits, capital losses and disallowed foreign losses.
The adjustment is due to increases or (decreases) to net operating
losses, tax credit carryovers and other deferred tax assets subject
to valuation allowance of $(5) and $25 respectively, and other tax
adjustments of $7 and $7, respectively. Amounts are presented net
of income (loss) attributable to noncontrolling interests of $2 and
$1, respectively.
(13)
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 June
30,
Six Months Ended June
30,
2020
2019
2020
2019
Net income (loss) attributable to Newmont
stockholders
$
344
$
(25
)
$
1,166
$
62
Net income (loss) attributable to
noncontrolling interests
3
25
5
57
Net loss (Income) from discontinued
operations (1)
68
26
83
52
Equity loss (income) of affiliates
(29
)
(26
)
(66
)
(21
)
Income and mining tax expense
(benefit)
164
20
141
145
Depreciation and amortization
528
487
1,093
799
Interest expense, net
78
82
160
140
EBITDA
$
1,156
$
589
$
2,582
$
1,234
Adjustments:
(Gain) loss on asset and investment sales
(2)
1
(32
)
(592
)
(33
)
Change in fair value of investments
(3)
(227
)
(35
)
(134
)
(56
)
Impairment of investments (4)
—
—
93
1
Loss on debt extinguishment (5)
3
—
77
—
COVID-19 specific costs (6)
33
—
35
—
Goldcorp transaction and integration costs
(7)
7
114
23
159
Restructuring and other (8)
6
—
13
5
Impairment of long-lived assets (9)
5
—
5
1
Reclamation and remediation adjustments
(10)
—
32
—
32
Nevada JV transaction and integration
costs (11)
—
11
—
23
Adjusted EBITDA (12)
$
984
$
679
$
2,102
$
1,366
(1)
For additional information regarding our
discontinued operations, see Note 13 to our Condensed Consolidated
Financial Statements.
(2)
(Gain) loss on asset and investment sales,
included in Gain on asset and investment sales, net, primarily
represents a $493 gain on the sale of Kalgoorlie in January 2020, a
$91 gain on the sale of Continental and a $9 gain on the sale of
Red Lake in March 2020 and represents a gain on the sale of
exploration land in 2019. For additional information, see Note 9 to
our Condensed Consolidated Financial Statements.
(3)
Change in fair value of investments,
included in Other income, net, primarily represents unrealized
holding gains and losses on marketable equity securities and our
investment instruments. For additional information regarding our
investments, see Note 19 to our Condensed Consolidated Financial
Statements.
(4)
Impairment of investments, included in
Other income, net, primarily represents the other-than-temporary
impairment of the TMAC investment recorded in March 2020.
(5)
Loss on debt extinguishment, included in
Other income, net, primarily represents losses on the
extinguishment of a portion of the 2022 Senior Notes and 2023
Senior Notes during March and April 2020.
(6)
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.
(7)
Goldcorp transaction and integration
costs, included in Other expense, net, primarily represents costs
incurred related to the Newmont Goldcorp transaction completed
during 2019 as well as subsequent integration costs.
(8)
Restructuring and other, included in Other
expense, net, primarily represents certain costs associated with
severance, legal and other settlements of $4, $—, $11 and $5,
respectively. Restructuring and other, included in Other income,
net, primarily represents pension settlements of $2, $—, $2 and $—,
respectively.
(9)
Impairment of long-lived assets, included
in Other expense, net, represents non-cash write-downs of
long-lived assets.
(10)
Reclamation and remediation charges,
included in Reclamation and remediation, represent revisions to
remediation plans at the Company’s former historic mining
operations in 2019.
(11)
Nevada JV transaction and integration
costs, included in Other expense, net, primarily represents costs
incurred related to the Nevada JV Agreement, including hostile
defense fees, during 2019.
(12)
Adjusted EBITDA has not been adjusted for
$125 and $145 of cash care and maintenance costs, included in Care
and maintenance, which primarily represent costs incurred
associated with our Musselwhite, Éléonore, Peñasquito, Yanacocha
and Cerro Negro mine sites being temporarily placed into care and
maintenance in response to the COVID-19 pandemic during a portion
of the three and six months ended June 30, 2020, 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 June 30,
2020
Six Months Ended June
30, 2020
Income (Loss) before Income and Mining Tax
and other Items, NGM (1)
$
130
$
263
Depreciation and amortization (1)
147
278
NGM EBITDA
$
277
$
541
(1)
See Note 4 to the Condensed 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 Condensed 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
Condensed 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 June
30,
Six Months Ended June
30,
2020
2019
2020
2019
Net cash provided by (used in) operating
activities
$
664
$
299
$
1,600
$
870
Less: Net cash used in (provided by)
operating activities of discontinued operations
4
2
7
5
Net cash provided by (used in) operating
activities of continuing operations
668
301
1,607
875
Less: Additions to property, plant and
mine development
(280
)
(380
)
(608
)
(605
)
Free Cash Flow
$
388
$
(79
)
$
999
$
270
Net cash provided by (used in) investing
activities (1)
$
(284
)
$
(104
)
$
839
$
(379
)
Net cash provided by (used in) financing
activities
$
(291
)
$
(1,893
)
$
(877
)
$
(2,036
)
(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.
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. 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 June
30,
Six Months Ended June
30,
2020
2019
2020
2019
Costs applicable to sales (1)(2)
$
940
$
1,245
$
2,080
$
2,180
Gold sold (thousand ounces)
1,255
1,636
2,715
2,974
Costs applicable to sales per ounce
(3)
$
748
$
759
$
766
$
733
(1)
Includes by-product credits of $20 and $44
during the three and six months ended June 30, 2020, respectively,
and $21 and $29 during the three and six months ended June 30,
2019, 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 June
30,
Six Months Ended June
30,
2020
2019
2020
2019
Costs applicable to sales (1)(2)
$
118
$
121
$
310
$
164
Gold equivalent ounces - other metals
(thousand ounces) (3)
213
93
532
144
Costs applicable to sales per ounce
(4)
$
555
$
1,308
$
583
$
1,146
(1)
Includes by-product credits of $1 and $1
during the three and six months ended June 30, 2020, respectively,
and $2 and $2 during the three and six months ended June 30, 2019,
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
($2.75/lb.), Silver $16/oz.), Lead ($0.95/lb.) and Zinc ($1.20/lb.)
pricing for 2020 and Gold ($1,200/oz.), Copper ($2.75/lb.), Silver
($15/oz.), Lead ($0.90/lb.) and Zinc ($1.05/lb.) pricing for
2019.
(4)
Per ounce measures may not recalculate due
to rounding.
Costs applicable to sales per ounce for Nevada Gold Mines
(NGM)
Three Months Ended June 30,
2020
Six Months Ended June
30, 2020
Cost applicable to sales, NGM (1)(2)
$
260
$
503
Gold sold (thousand ounces), NGM
325
657
Costs applicable to sales per ounce, NGM
(3)
$
797
$
765
(1)
See Note 4 to the Condensed 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
Newmont has developed 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.
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, we believe
that all-in sustaining costs is a non-GAAP measure that provides
additional information to management, investors and analysts that
aid 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.
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 (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
Costs applicable to sales (“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 Condensed 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 Condensed Consolidated Statements of Operations less the
amount of CAS attributable to the production of other metals at our
Peñasquito, Boddington, and Phoenix mines. The other metals CAS at
those mine sites is disclosed in Note 4 to the Condensed
Consolidated Financial Statements. The allocation of CAS between
gold and other metals at the Peñasquito, Boddington, and Phoenix
mines 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 Asset
Retirement Cost (“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 at the Peñasquito,
Boddington, and Phoenix mines.
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 Condensed
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 at the Peñasquito, Boddington, and Phoenix mines.
General and administrative. Includes costs related to
administrative tasks not directly related to current production,
but rather related to support our corporate structure and fulfill
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.
Care and maintenance and Other expense, net. Care and
maintenance includes direct operating and development capital 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. For Other expense, net we 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 at the Peñasquito, Boddington, and
Phoenix mines.
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 our Condensed 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 at the Peñasquito, Boddington, and Phoenix
mines.
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 at the Peñasquito,
Boddington, and Phoenix mines.
Three Months Ended June 30,
2020
Costs Applicable to
Sales(1)(2)(3)
Reclamation Costs(4)
Advanced Projects, Research
and Development and Exploration(5)
General and
Administrative
Care and Maintenance and 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)(11)
Gold
CC&V
$
59
$
2
$
1
$
—
$
—
$
—
$
11
$
73
64
$
1,132
Musselwhite
2
—
1
—
19
—
2
24
—
N.M.
Porcupine
58
1
4
—
—
—
8
71
87
800
Éléonore
13
1
1
—
20
—
3
38
13
2,832
Peñasquito
50
1
—
—
19
7
2
79
84
949
Other North America
—
—
(2
)
5
1
—
1
5
—
—
North America
182
5
5
5
59
7
27
290
248
1,162
Yanacocha
62
12
—
—
22
—
4
100
67
1,484
Merian
72
1
2
1
—
—
8
84
101
833
Cerro Negro
21
—
(2
)
—
31
—
6
56
30
1,838
Other South America
—
—
—
3
1
—
—
4
—
—
South America
155
13
—
4
54
—
18
244
198
1,233
Boddington
142
3
1
—
—
2
22
170
159
1,068
Tanami
62
1
2
—
—
—
19
84
125
672
Other Australia
—
—
—
2
—
—
2
4
—
—
Australia
204
4
3
2
—
2
43
258
284
907
Ahafo
84
2
1
—
1
—
19
107
106
1,008
Akyem
55
5
1
—
1
—
5
67
94
713
Other Africa
—
—
—
1
—
—
—
1
—
—
Africa
139
7
2
1
2
—
24
175
200
877
Nevada Gold Mines
260
4
4
2
1
4
44
319
325
979
Nevada
260
4
4
2
1
4
44
319
325
979
Corporate and Other
—
—
17
58
1
—
15
91
—
—
Total Gold
$
940
$
33
$
31
$
72
$
117
$
13
$
171
$
1,377
1,255
$
1,097
Gold equivalent ounces - other metals
(12)
Peñasquito
$
93
$
2
$
—
$
—
$
18
$
37
$
27
$
177
185
$
960
Boddington
25
1
—
—
—
1
4
31
28
1,068
Total Gold Equivalent Ounces
$
118
$
3
$
—
$
—
$
18
$
38
$
31
$
208
213
$
974
Consolidated
$
1,058
$
36
$
31
$
72
$
135
$
51
$
202
$
1,585
(1)
Excludes Depreciation and amortization and
Reclamation and remediation.
(2)
Includes by-product credits of $21 and
excludes co-product revenues of $199.
(3)
Includes stockpile and leach pad inventory
adjustments of $11 at NGM.
(4)
Reclamation costs include operating
accretion and amortization of asset retirement costs of $23 and
$13, respectively, and exclude non-operating accretion and
reclamation and remediation adjustments of $13 and $4,
respectively.
(5)
Advanced projects, research and
development and Exploration excludes development expenditures of $2
at CC&V, $1 at Yanacocha, $2 at Merian, $(4) at Cerro Negro, $5
at Other South America, $1 at Tanami, $4 at Other Australia, $3 at
Ahafo and $7 at NGM, totaling $21 related to developing new
operations or major projects at existing operations where these
projects will materially benefit the operation.
(6)
Care and maintenance includes $20 at
Musselwhite, $20 at Éléonore, $38 at Peñasquito, $21 at Yanacocha,
$25 at Cerro Negro and $1 at Other South America of cash care and
maintenance costs associated with the sites temporarily being
placed into care and maintenance in response to the COVID-19
pandemic, during the period ended June 30, 2020 that we would have
continued to incur if the site were not temporarily placed into
care and maintenance.
(7)
Other expense, net is adjusted for
incremental costs of responding to the COVID-19 pandemic of $33,
Goldcorp transaction and integration costs of $7, impairment of
long-lived assets of $5 and restructuring and other costs of
$4.
(8)
Includes sustaining capital expenditures
of $40 for North America, $18 for South America, $45 for Australia,
$24 for Africa, $44 for Nevada, and $15 for Corporate and Other,
totaling $186 and excludes development capital expenditures,
capitalized interest and the change in accrued capital totaling
$94. The following are major development projects: Musselwhite
Materials Handling, Éléonore Lower Mine Material Handling System,
Quecher Main, Yanacocha Sulfides, Tanami Expansion 2, Subika Mining
Method Change, Ahafo North, Goldrush Complex, Turquoise Ridge 3rd
shaft and Range Front Declines at Cortez.
(9)
Includes finance lease payments for
sustaining projects of $16.
(10)
Per ounce measures may not recalculate due
to rounding.
(11)
N.M. – Not meaningful
(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 $16.00/oz.), Lead ($0.95/lb.) and Zinc
($1.20/lb.) pricing for 2020.
Three Months Ended June 30,
2019
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)
Treatment and
Refining Costs
Sustaining
Capital (7)
All-In Sustaining
Costs
Ounces (000)
Sold
All-In
Sustaining
Costs per
oz. (8)
Gold
CC&V
$
77
$
2
$
2
$
—
$
1
$
—
$
12
$
94
82
$
1,144
Red Lake
43
—
3
—
—
—
14
60
37
1,621
Musselwhite
12
—
3
—
—
—
4
19
6
3,307
Porcupine
63
1
2
—
—
—
10
76
59
1,288
Éléonore
75
—
2
—
—
1
12
90
84
1,073
Peñasquito
27
—
—
—
—
—
7
34
19
1,775
Other North America
—
—
1
20
—
—
3
24
—
—
North America
297
3
13
20
1
1
62
397
287
1,383
Yanacocha
100
14
2
—
5
—
8
129
135
955
Merian
71
1
1
1
—
—
12
86
124
696
Cerro Negro
63
1
2
—
1
—
13
80
100
802
Other South America
—
—
—
2
—
—
—
2
—
—
South America
234
16
5
3
6
—
33
297
359
827
Boddington
139
3
—
—
—
3
15
160
175
915
Tanami
65
1
1
—
—
—
21
88
118
744
Kalgoorlie
50
1
—
—
—
—
6
57
55
1,035
Other Australia
—
—
1
2
—
—
2
5
—
—
Australia
254
5
2
2
—
3
44
310
348
890
Ahafo
97
1
6
—
1
—
30
135
158
850
Akyem
70
9
1
—
1
—
7
88
119
734
Other Africa
—
—
—
2
—
—
—
2
—
—
Africa
167
10
7
2
2
—
37
225
277
810
Carlin
166
1
5
1
—
—
35
208
183
1,138
Phoenix
53
2
—
1
—
3
5
64
53
1,211
Twin Creeks
59
—
1
1
—
—
11
72
85
850
Long Canyon
15
—
—
1
—
—
2
18
44
402
Other Nevada
—
—
—
—
—
—
3
3
—
—
Nevada
293
3
6
4
—
3
56
365
365
1,002
Corporate and Other
—
—
15
50
3
—
—
68
—
—
Total Gold
$
1,245
$
37
$
48
$
81
$
12
$
7
$
232
$
1,662
1,636
$
1,016
Gold equivalent ounces - other metals
(9)
Peñasquito
$
77
$
—
$
1
$
—
$
—
$
3
$
20
$
101
40
$
2,536
Boddington
29
2
—
—
—
1
2
34
35
957
Phoenix
15
2
—
—
—
1
1
19
18
1,037
Total Gold Equivalent Ounces
$
121
$
4
$
1
$
—
$
—
$
5
$
23
$
154
93
$
1,646
Consolidated
$
1,366
$
41
$
49
$
81
$
12
$
12
$
255
$
1,816
(1)
Excludes Depreciation and amortization and
Reclamation and remediation.
(2)
Includes by-product credits of $23 and
excludes co-product revenues of $103.
(3)
Includes stockpile and leach pad inventory
adjustments of $7 at CC&V, $3 at Yanacocha, $12 at Boddington,
$15 at Akyem and $15 at Carlin.
(4)
Reclamation costs include operating
accretion and amortization of asset retirement costs of $24 and
$17, respectively, and exclude non-operating accretion and
reclamation and remediation adjustments of $12 and $37,
respectively.
(5)
Advanced projects, research and
development and Exploration excludes development expenditures of $2
at CC&V, $4 at Yanacocha, $1 at Merian, $2 at Cerro Negro, $11
at Other South America, $1 at Kalgoorlie, $4 at Other Australia, $5
at Ahafo, $4 at Akyem, $2 at Other Africa, $2 at Carlin, $1 at
Phoenix, $2 at Twin Creeks, $7 at Long Canyon, $2 at Other Nevada
and $2 at Corporate and Other, totaling $52 related to developing
new operations or major projects at existing operations where these
projects will materially benefit the operation.
(6)
Other expense, net is adjusted for
Goldcorp transaction and integration costs of $114 and Nevada JV
transaction implementation costs of $11.
(7)
Includes sustaining capital expenditures
of $72 for North America, $33 for South America, $45 for Australia,
$36 for Africa, $56 for Nevada and nil for Corporate and Other,
totaling $242 and excludes development capital expenditures,
capitalized interest and the increase in accrued capital totaling
$138. The following are major development projects: Musselwhite
Materials Handling, Borden, Quecher Main, Yanacocha Sulfides,
Tanami Expansion 2, Ahafo North, Ahafo Mill Expansion and Turquoise
Ridge joint venture 3rd shaft.
(8)
Includes finance lease payments for
sustaining projects of $13 and excludes finance lease payments for
development projects of $13.
(9)
Per ounce measures may not recalculate due
to rounding.
(10)
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 ($15/oz.), Lead ($0.90/lb.) and Zinc
($1.05/lb.) pricing for 2019.
Six Months Ended June 30, 2020
Costs Applicable to
Sales(1)(2)(3)
Reclamation Costs(4)
Advanced Projects, Research
and Development and Exploration(5)
General and
Administrative
Care and Maintenance and 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
$
119
$
3
$
2
$
—
$
—
$
—
$
17
$
141
129
$
1,087
Red Lake
45
—
1
—
—
—
4
50
42
1,182
Musselwhite
27
1
3
—
22
—
9
62
15
4,044
Porcupine
113
2
4
—
—
—
15
134
160
837
Éléonore
74
1
3
—
26
—
17
121
80
1,506
Peñasquito
114
2
—
—
19
9
11
155
181
852
Other North America
—
—
—
8
1
—
1
10
—
—
North America
492
9
13
8
68
9
74
673
607
1,105
Yanacocha
189
29
3
—
26
—
8
255
186
1,372
Merian
153
2
3
1
—
—
17
176
231
762
Cerro Negro
72
1
1
—
38
—
16
128
103
1,234
Other South America
—
—
—
5
1
—
—
6
—
—
South America
414
32
7
6
65
—
41
565
520
1,087
Boddington
273
6
2
—
—
5
47
333
307
1,081
Tanami
127
1
4
—
—
—
39
171
245
699
Other Australia
—
—
—
6
—
—
2
8
—
—
Australia
400
7
6
6
—
5
88
512
552
927
Ahafo
165
4
1
—
2
—
36
208
202
1,030
Akyem
106
12
1
—
1
—
11
131
177
738
Other Africa
—
—
—
3
—
—
—
3
—
—
Africa
271
16
2
3
3
—
47
342
379
902
Nevada Gold Mines
503
7
10
5
6
6
90
627
657
953
Nevada
503
7
10
5
6
6
90
627
657
953
Corporate and Other
—
—
29
109
3
—
21
162
—
—
Total Gold
$
2,080
$
71
$
67
$
137
$
145
$
20
$
361
$
2,881
2,715
$
1,061
Gold equivalent ounces - other metals
(11)
Peñasquito
$
260
$
4
$
1
$
—
$
18
$
83
$
53
$
419
473
$
888
Boddington
50
1
—
—
—
3
9
63
59
1,051
Total Gold Equivalent Ounces
$
310
$
5
$
1
$
—
$
18
$
86
$
62
$
482
532
$
906
Consolidated
$
2,390
$
76
$
68
$
137
$
163
$
106
$
423
$
3,363
(1)
Excludes Depreciation and amortization and
Reclamation and remediation.
(2)
Includes by-product credits of $45 and
excludes co-product revenues of $459.
(3)
Includes stockpile and leach pad inventory
adjustments of $18 at Yanacocha and $17 at NGM.
(4)
Reclamation costs include operating
accretion and amortization of asset retirement costs of $46 and
$30, respectively, and exclude non-operating accretion and
reclamation and remediation adjustments of $26 and $6 ,
respectively.
(5)
Advanced projects, research and
development and Exploration excludes development expenditures of $3
at CC&V, $1 at Porcupine, $1 at Peñasquito, $2 at Yanacocha, $3
at Merian, $13 at Other South America, $3 at Tanami, $6 at Other
Australia, $8 at Ahafo, $2 at Akyem, $2 at Other Africa, $8 at NGM
and $3 at Corporate and Other, totaling $55 related to developing
new operations or major projects at existing operations where these
projects will materially benefit the operation.
(6)
Care and maintenance includes $23 at
Musselwhite, $26 at Éléonore, $38 at Peñasquito, $25 at Yanacocha,
$32 at Cerro Negro and $1 at Other South America of cash care and
maintenance costs associated with the sites temporarily being
placed into care and maintenance in response to the COVID-19
pandemic, during the period ended June 30, 2020 that we would have
continued to incur if the site were not temporarily placed into
care and maintenance.
(7)
Other expense, net is adjusted for
incremental costs of responding to the COVID-19 pandemic of $35,
Goldcorp transaction and integration costs of $23, restructuring
and other costs of $11 and impairment of long-lived assets of
$5.
(8)
Includes sustaining capital expenditures
of $101 for North America, $41 for South America, $92 for
Australia, $47 for Africa, $90 for Nevada, and $21 for Corporate
and Other, totaling $392 and excludes development capital
expenditures, capitalized interest and the change in accrued
capital totaling $216. The following are major development
projects: Musselwhite Materials Handling, Éléonore Lower Mine
Material Handling System, Quecher Main, Yanacocha Sulfides, Tanami
Expansion 2, Subika Mining Method Change, Ahafo North, Goldrush
Complex, Turquoise Ridge 3rd shaft and Range Front Declines at
Cortez.
(9)
Includes finance lease payments for
sustaining projects of $31.
(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 $16.00/oz.), Lead ($0.95/lb.) and Zinc
($1.20/lb.) pricing for 2020.
Six Months Ended June 30, 2019
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)
Treatment and
Refining Costs
Sustaining
Capital and Lease Related
Costs(7)(8)
All-In Sustaining
Costs
Ounces (000)
Sold
All-In
Sustaining
Costs per
oz. (9)
Gold
CC&V
$
143
$
3
$
4
$
1
$
2
$
—
$
15
$
168
157
$
1,071
Red Lake
43
—
3
—
—
—
14
60
37
1,621
Musselwhite
12
—
3
—
—
—
4
19
6
3,307
Porcupine
63
1
2
—
—
—
10
76
59
1,288
Éléonore
75
—
2
—
—
1
12
90
84
1,073
Peñasquito
27
—
—
—
—
—
7
34
19
1,775
Other North America
—
—
1
20
—
—
3
24
—
—
North America
363
4
15
21
2
1
65
471
362
1,302
Yanacocha
193
30
3
—
7
—
14
247
273
903
Merian
142
2
2
1
—
—
23
170
270
631
Cerro Negro
63
1
2
0
1
—
13
80
100
802
Other South America
—
—
—
5
—
—
—
5
—
—
South America
398
33
7
6
8
—
50
502
643
780
Boddington
285
6
—
—
—
7
26
324
344
944
Tanami
134
2
3
—
—
—
38
177
249
710
Kalgoorlie
100
1
—
—
—
—
15
116
109
1,056
Other Australia
—
—
1
5
1
—
3
10
—
—
Australia
519
9
4
5
1
7
82
627
702
894
Ahafo
183
2
9
—
1
—
48
243
294
824
Akyem
121
17
3
—
1
—
15
157
214
731
Other Africa
—
—
—
4
—
—
—
4
—
—
Africa
304
19
12
4
2
—
63
404
508
794
Carlin
—
—
—
—
—
—
—
—
—
—
Phoenix
350
3
9
3
1
—
64
430
397
1,082
Twin Creeks
101
3
—
1
—
5
10
120
105
1,144
Long Canyon
110
1
3
1
—
—
23
138
162
855
Other Nevada
35
1
—
1
—
—
7
44
95
463
Nevada
596
8
17
6
1
5
108
741
759
976
Corporate and Other
—
—
28
98
3
—
1
130
—
—
Total Gold
$
2,180
$
73
$
83
$
140
$
17
$
13
$
369
$
2,875
2,974
$
967
Gold equivalent ounces - other metals
(10)
Peñasquito
$
77
$
—
$
1
$
—
$
—
$
3
$
20
$
101
40
$
2,536
Boddington
59
2
—
—
—
3
5
69
69
997
Phoenix
28
2
—
—
—
1
3
34
35
959
Total Gold Equivalent Ounces
$
164
$
4
$
1
$
—
$
—
$
7
$
28
$
204
144
$
1,413
Consolidated
$
2,344
$
77
$
84
$
140
$
17
$
20
$
397
$
3,079
(1)
Excludes Depreciation and amortization and
Reclamation and remediation.
(2)
Includes by-product credits of $31 and
excludes co-product revenues of $167.
(3)
Includes stockpile and leach pad inventory
adjustments of $10 at CC&V, $10 at Yanacocha, $19 at
Boddington, $20 at Akyem, $33 at Carlin, and $2 at Twin Creeks.
(4)
Reclamation costs include operating
accretion and amortization of asset retirement costs of $39 and
$38, respectively, and exclude non-operating accretion and
reclamation and remediation adjustments of $24 and $40,
respectively.
(5)
Advanced projects, research and
development and Exploration excludes development expenditures of $3
at CC&V, $7 at Yanacocha, $1 at Merian, $2 at Cerro Negro, $20
at Other South America, $3 at Tanami, $2 at Kalgoorlie, $6 at Other
Australia, $7 at Ahafo, $5 at Akyem, $3 at Other Africa, $6 at
Carlin, $1 at Phoenix, $2 at Twin Creeks, $12 at Long Canyon, $2 at
Other Nevada and $3 at Corporate and Other, totaling $85 related to
developing new operations or major projects at existing operations
where these projects will materially benefit the operation.
(6)
Other expense, net is adjusted for
Goldcorp transaction and integration costs of $159, Nevada JV
transaction implementation costs of $23, restructuring and other
costs of $5 and impairment of long-lived assets of $1.
(7)
Includes sustaining capital expenditures
of $74 for North America, $50 for South America, $81 for Australia,
$61 for Africa, $110 for Nevada and $1 for Corporate and Other,
totaling $377 and excludes development capital expenditures,
capitalized interest and the increase in accrued capital totaling
$228. The following are major development projects: Musselwhite
Materials Handling, Borden, Quecher Main, Yanacocha Sulfides,
Tanami Expansion 2, Ahafo North, Subika Underground, Ahafo Mill
Expansion, Turquoise Ridge joint venture 3rd shaft.
(8)
Includes finance lease payments for
sustaining projects of $20 and excludes finance lease payments for
development projects of $19.
(9)
Per ounce measures may not recalculate due
to rounding.
(10)
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 ($15.00/oz.), Lead ($0.90/lb.) and Zinc
($1.05/lb.) pricing for 2019.
A reconciliation of the 2020 Gold AISC outlook to the 2020 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.
2020 Proforma Outlook Gold
(7)(8)
Outlook Estimate
(in millions, except ounces and per
ounce)
Cost Applicable to Sales (1)(2)
4,450
Reclamation Costs (3)
170
Advanced Projects & Exploration
(4)
130
General and Administrative (5)
240
Other Expense
160
Treatment and Refining Costs
30
Sustaining Capital (6)
790
Sustaining Finance Lease Payments
30
All-in Sustaining Costs
6,000
Ounces (000) Sold (9)
5,900
All-in Sustaining Costs per Oz
1,015
(1)
Excludes Depreciation and amortization and
Reclamation and remediation.
(2)
Includes stockpile and leach pad inventory
adjustments.
(3)
Reclamation costs include operating
accretion and amortization of asset retirement costs.
(4)
Advanced Project and Exploration excludes
non-sustaining advanced projects and exploration.
(5)
Includes stock based compensation.
(6)
Excludes development capital expenditures,
capitalized interest and change in accrued capital.
(7)
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 2020 AISC
Gold and Co-Product 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.
(8)
All values are presented on a consolidated
basis for Newmont.
(9)
Consolidated production for Yanacocha and
Merian is presented on a total production basis for the mine site
and excludes production from Pueblo Viejo.
A reconciliation of the 2020 Co-products AISC outlook to the
2020 Co-Products CAS outlook is provided below. The estimates in
the table below are considered “forward-looking statements” within
the 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.
2020 Proforma Outlook - Co-Product
(7)(8)
Outlook Estimate
(in millions, except GEO and per
GEO)
Cost Applicable to Sales (1)(2)
610
Reclamation Costs (3)
10
Advanced Projects & Exploration
(4)
10
General and Administrative (5)
25
Other Expense
20
Treatment and Refining Costs
150
Sustaining Capital (6)
110
Sustaining Finance Lease Payments
20
All-in Sustaining Costs
955
Co-Product GEO (000) Sold (9)
1,010
All-in Sustaining Costs per Co Product
GEO
945
(1)
Excludes Depreciation and amortization and
Reclamation and remediation.
(2)
Includes stockpile and leach pad inventory
adjustments.
(3)
Reclamation costs include operating
accretion and amortization of asset retirement costs.
(4)
Advanced Project and Exploration excludes
non-sustaining advanced projects and exploration.
(5)
Includes stock based compensation.
(6)
Excludes development capital expenditures,
capitalized interest and change in accrued capital.
(7)
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 2020 AISC
Gold and Co-Product 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.
(8)
All values are presented on a consolidated
basis for Newmont.
(9)
Co-Product GEO are all non-gold
co-products (Peñasquito silver, zinc, lead, Boddington copper).
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 June 30,
2020
Three Months Ended
March 31, 2020
Three Months Ended
December 31, 2019
Three Months Ended
September 30, 2019
Net income (loss) attributable to Newmont
stockholders
$
344
$
822
$
565
$
2,178
Net income (loss) attributable to
noncontrolling interests
3
2
(4
)
26
Net loss (income) from discontinued
operations
68
15
(28
)
48
Equity loss (income) of affiliates
(29
)
(37
)
(42
)
(32
)
Income and mining tax expense
(benefit)
164
(23
)
129
558
Depreciation and amortization
528
565
613
548
Interest expense, net
78
82
84
77
EBITDA
1,156
1,426
1,317
3,403
EBITDA Adjustments:
Change in fair value of investments
(227
)
93
(91
)
(19
)
COVID-19 specific costs
33
2
—
—
Goldcorp transaction and integration
costs
7
16
32
26
Restructuring and other
6
7
(23
)
10
Impairment of long-lived assets
5
—
1
3
Loss on debt extinguishment
3
74
—
—
Loss (gain) on asset and investment
sales
1
(593
)
2
1
Impairment of investments
—
93
—
1
Reclamation and remediation charges
—
—
71
17
Nevada JV transaction and integration
costs
—
—
4
3
Gain on formation of Nevada Gold Mines
—
—
(24
)
(2,366
)
Adjusted EBITDA
984
1,118
1,289
1,079
12 month trailing Adjusted
EBITDA
$
4,470
Total Gross Debt
$
6,678
Less: Cash and cash equivalents
3,808
Total net debt
$
2,870
Net debt to adjusted EBITDA
0.6
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 June
30,
Six Months Ended June
30,
2020
2019
2020
2019
Consolidated gold sales, net
$
2,166
$
2,154
$
4,487
$
3,893
Consolidated copper sales, net
37
59
58
123
Consolidated silver sales, net
76
31
199
31
Consolidated lead sales, net
23
13
62
13
Consolidated zinc sales, net
63
—
140
—
Total sales
$
2,365
$
2,257
$
4,946
$
4,060
Three Months Ended June 30,
2020
Gold
Copper
Silver
Lead
Zinc
(ounces)
(pounds)
(ounces)
(pounds)
(pounds)
Consolidated sales:
Gross before provisional pricing and
streaming impact
$
2,162
$
32
$
66
$
23
$
80
Provisional pricing mark-to-market
17
6
15
—
4
Silver streaming amortization
—
—
11
—
—
Gross after provisional pricing and
streaming impact
2,179
38
92
23
84
Treatment and refining charges
(13
)
(1
)
(16
)
—
(21
)
Net
$
2,166
$
37
$
76
$
23
$
63
Consolidated ounces (thousands)/ pounds
(millions) sold
1,255
13
5,211
31
91
Average realized price (per
ounce/pound)(1):
Gross before provisional pricing and
streaming impact
$
1,721
$
2.57
$
12.59
$
0.77
$
0.88
Provisional pricing mark-to-market
14
0.45
2.72
(0.02
)
0.05
Silver streaming amortization
—
—
2.25
—
—
Gross after provisional pricing and
streaming impact
1,735
3.02
17.56
0.75
0.93
Treatment and refining charges
(11
)
(0.11
)
(2.86
)
—
(0.23
)
Net
$
1,724
$
2.91
$
14.70
$
0.75
$
0.70
Six Months Ended June 30,
2020
Gold
Copper
Silver
Lead
Zinc
(ounces)
(pounds)
(ounces)
(pounds)
(pounds)
Consolidated sales:
Gross before provisional pricing and
streaming impact
$
4,478
$
66
$
184
$
73
$
200
Provisional pricing mark-to-market
29
(5
)
6
(2
)
(9
)
Silver streaming amortization
—
—
32
—
—
Gross after provisional pricing and
streaming impact
4,507
61
222
71
191
Treatment and refining charges
(20
)
(3
)
(23
)
(9
)
(51
)
Net
$
4,487
$
58
$
199
$
62
$
140
Consolidated ounces (thousands)/ pounds
(millions) sold
2,715
26
13,889
91
215
Average realized price (per
ounce/pound)(1):
Gross before provisional pricing and
streaming impact
$
1,649
$
2.52
$
13.22
$
0.80
$
0.93
Provisional pricing mark-to-market
11
(0.20
)
0.40
(0.02
)
(0.04
)
Silver streaming amortization
—
—
2.34
—
—
Gross after provisional pricing and
streaming impact
1,660
2.32
15.96
0.78
0.89
Treatment and refining charges
(8
)
(0.11
)
(1.61
)
(0.10
)
(0.24
)
Net
$
1,652
$
2.21
$
14.35
$
0.68
$
0.65
(1)
Per ounce measures may not recalculate due
to rounding.
Three Months Ended June 30,
2019
Gold
Copper
Silver
Lead
(ounces)
(pounds)
(ounces)
(pounds)
Consolidated sales:
Gross before provisional pricing and
streaming impact
$
2,154
$
66
$
26
$
15
Provisional pricing mark-to-market
7
(4
)
—
—
Silver streaming amortization
—
—
5
—
Gross after provisional pricing and
streaming impact
2,161
62
31
15
Treatment and refining charges
(7
)
(3
)
—
(2
)
Net
$
2,154
$
59
$
31
$
13
Consolidated ounces (thousands)/ pounds
(millions) sold
1,636
24
2,167
17
Average realized price (per
ounce/pound)(1):
Gross before provisional pricing and
streaming impact
$
1,317
$
2.76
$
11.87
$
0.88
Provisional pricing mark-to-market
5
(0.17
)
—
—
Silver streaming amortization
—
—
2.33
—
Gross after provisional pricing and
streaming impact
1,322
2.59
14.20
0.88
Treatment and refining charges
(5
)
(0.11
)
—
(0.12
)
Net
$
1,317
$
2.48
$
14.20
$
0.76
Six Months Ended June 30,
2019
Gold
Copper
Silver
Lead
(ounces)
(pounds)
(ounces)
(pounds)
Consolidated sales:
Gross before provisional pricing and
streaming impact
$
3,899
$
129
$
26
$
15
Provisional pricing mark-to-market
7
(1
)
—
—
Silver streaming amortization
—
—
5
—
Gross after provisional pricing and
streaming impact
3,906
128
31
15
Treatment and refining charges
(13
)
(5
)
—
(2
)
Net
$
3,893
$
123
$
31
$
13
Consolidated ounces (thousands)/ pounds
(millions) sold
2,974
46
2,167
17
Average realized price (per
ounce/pound)(1):
Gross before provisional pricing and
streaming impact
$
1,312
$
2.81
$
11.87
$
0.88
Provisional pricing mark-to-market
2
(0.02
)
—
—
Silver streaming amortization
—
—
2.33
—
Gross after provisional pricing and
streaming impact
1,314
2.79
14.20
0.88
Treatment and refining charges
(4
)
(0.11
)
—
(0.12
)
Net
$
1,310
$
2.68
$
14.20
$
0.76
(1)
Per ounce measures may not recalculate due
to rounding.
Gold by-product metrics
Copper, sliver, 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 June
30,
Six Months Ended June
30,
2020
2019
2020
2019
Consolidated gold sales, net
$
2,166
$
2,154
$
4,487
$
3,893
Consolidated other metal sales, net
199
103
459
167
Sales
$
2,365
$
2,257
$
4,946
$
4,060
Costs applicable to sales
$
1,058
$
1,366
$
2,390
$
2,344
Less: Consolidated other metal sales,
net
(199
)
(103
)
(459
)
(167
)
By-Product costs applicable to sales
$
859
$
1,263
$
1,931
$
2,177
Gold sold (thousand ounces)
1,255
1,636
2,715
2,974
Total Gold CAS per ounce (by-product)
$
684
$
772
$
711
$
732
Total AISC
$
1,585
$
1,816
$
3,363
$
3,079
Less: Consolidated other metal sales,
net
(199
)
(103
)
(459
)
(167
)
By-Product AISC
$
1,386
$
1,713
$
2,904
$
2,912
Gold sold (thousand ounces)
1,255
1,636
2,715
2,974
Total Gold AISC per ounce (by-product)
$
1,104
$
1,047
$
1,070
$
979
(1)
Per ounce measures may not recalculate due
to rounding.
Conference Call Information
A conference call will be held on Thursday, July 30, 2020
at 9:00 a.m. Eastern Time (7:00 a.m. Mountain Time); it will
also be carried on the Company’s website.
Conference Call Details
Dial-In Number
855.209.8210
Intl Dial-In Number
412.317.5213
Conference Name
Newmont
Replay Number
877.344.7529
Intl Replay Number
412.317.0088
Replay Access Code
10145490
Webcast
Details
Title: Newmont Second Quarter 2020
Earnings Conference Call
URL:
https://event.on24.com/wcc/r/2403610/9D2317EEE2A4454B3462A9807D6CCAD2
The second quarter 2020 results will be available before the
market opens on Thursday, July 30, 2020 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 proficiency. Newmont was founded in 1921
and has been publicly traded since 1925.
Cautionary Statement Regarding Forward
Looking Statements, Including Outlook:
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,”
“target,” “indicative,” “preliminary,” 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, upside
potential and indicative production profiles; (ii) estimates of
future costs applicable to sales and all-in sustaining costs; (iii)
estimates of future consolidated and attributable capital
expenditures, including development and sustaining capital; (iv)
estimates of future cost reductions, full potential savings, value
creation, improvements, synergies and efficiencies; (v)
expectations regarding the development, growth and exploration
potential of the Company’s operations, projects and investments,
including, without limitation, returns, IRR, schedule, decision
dates, mine life, commercial start, first production, average
production, average costs, impacts of improvement or expansion
projects and upside potential; (vi) expectations regarding future
investments or divestitures; (vii) expectations regarding free cash
flow, and returns to stockholders; (viii) expectations regarding
future mineralization, including, without limitation, expectations
regarding reserves and recoveries; (ix) estimates of future closure
costs and liabilities; (x) expectations regarding the timing and/or
likelihood of future borrowing, future debt repayment, financial
flexibility and cash flow; (xi) expectations regarding the future
exploration, development of the project pipeline, (xii) integration
work, asset development and future results related to the Nevada
joint venture; (xiii) expectations regarding expense outlook,
including G&A, interest expense, depreciation and amortization
and tax rate; and (xiv) expectations regarding the impact of the
COVID-19 pandemic on the financial and operating results and the
overall business, including with respect to the Company’s guidance.
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,
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 being approximately consistent
with current levels; (v) certain price assumptions for gold,
copper, silver, zinc, lead and oil; (vi) prices for key supplies
being approximately consistent with current levels; (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), and the impact of additional waves of the pandemic or
increases of incidents of COVID-19 in the areas and countries in
which we operate. Investors are reminded that other than the first
and second quarter 2020 dividends previously declared, dividends
for the remainder of 2020 have not yet been approved or declared by
the Board of Directors. Management’s expectations with respect to
future dividends are “forward-looking statements” and 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. The
duration, scope and impact of COVID-19 presents additional
uncertainties with respect to future dividends and no assurance is
being provided that the Company will pay future dividends at the
current payment level. 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, 2019 filed with the U.S. Securities and Exchange Commission
(the “SEC”), under the heading “Risk Factors”, as well as the
COVID-19 related “Risk Factor” in the Quarterly Report on Form 10-Q
for the year ended March 31, 2020, filed with the U.S. Securities
and Exchange Commission on or about May 5, 2020 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.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20200730005235/en/
Media Contact
Eric Colby 303.837.5724 eric.colby@newmont.com
Investor Contact
Jessica Largent 303.837.5484 jessica.largent@newmont.com
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