North America Operations
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Gold or Other Metals Produced
|
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Costs Applicable to Sales (1)
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Depreciation and Amortization (2)
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All-In Sustaining Costs (3)
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2020
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2019
|
|
2020
|
|
2019
|
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2020
|
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2019
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2020
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2019
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Three Months Ended September 30,
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Gold
|
(ounces in thousands)
|
|
($ per ounce sold)
|
|
($ per ounce sold)
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|
($ per ounce sold)
|
|
CC&V
|
74
|
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|
82
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|
$
|
867
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$
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890
|
|
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$
|
296
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|
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$
|
291
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$
|
1,081
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$
|
1,087
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Red Lake (4)
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—
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|
25
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—
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1,479
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—
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704
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—
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1,872
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Musselwhite
|
45
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—
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985
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—
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713
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|
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—
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1,260
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—
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Porcupine
|
80
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|
|
77
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|
736
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739
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334
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270
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911
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|
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843
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Éléonore
|
57
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|
82
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924
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827
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547
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329
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1,118
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|
932
|
|
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Peñasquito
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158
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|
59
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|
|
570
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1,131
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|
|
302
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|
|
286
|
|
|
835
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1,681
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Total/Weighted-Average (5)
|
414
|
|
|
325
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|
$
|
762
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|
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$
|
945
|
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|
$
|
408
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$
|
394
|
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$
|
1,003
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|
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$
|
1,276
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Gold equivalent ounces - other metals
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(ounces in thousands)
|
|
($ per ounce sold)
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|
($ per ounce sold)
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|
($ per ounce sold)
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|
Peñasquito (6)
|
238
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|
203
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|
$
|
513
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$
|
756
|
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|
$
|
274
|
|
|
$
|
206
|
|
|
$
|
735
|
|
|
$
|
1,226
|
|
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|
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|
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Gold or Other Metals Produced
|
|
Costs Applicable to Sales (1)
|
|
Depreciation and Amortization (2)
|
|
All-In Sustaining Costs (3)
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|
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2020
|
|
2019
|
|
2020
|
|
2019
|
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2020
|
|
2019
|
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2020
|
|
2019
|
|
Nine Months Ended September 30,
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Gold
|
(ounces in thousands)
|
|
($ per ounce sold)
|
|
($ per ounce sold)
|
|
($ per ounce sold)
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|
CC&V
|
203
|
|
|
240
|
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$
|
901
|
|
|
$
|
903
|
|
|
$
|
295
|
|
|
$
|
294
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|
|
$
|
1,085
|
|
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$
|
1,076
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|
|
Red Lake (4)
|
38
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|
|
65
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|
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1,066
|
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1,298
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|
|
44
|
|
|
629
|
|
|
1,182
|
|
|
1,734
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Musselwhite
|
63
|
|
|
3
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|
|
1,172
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|
|
3,570
|
|
|
813
|
|
|
3,129
|
|
|
1,945
|
|
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7,131
|
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|
Porcupine
|
244
|
|
|
130
|
|
|
722
|
|
|
877
|
|
|
333
|
|
|
290
|
|
|
862
|
|
|
1,027
|
|
|
Éléonore
|
131
|
|
|
148
|
|
|
925
|
|
|
861
|
|
|
573
|
|
|
308
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1,345
|
|
|
1,002
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Peñasquito
|
343
|
|
|
71
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|
606
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1,226
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|
|
336
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|
|
305
|
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|
845
|
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|
1,714
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Total/Weighted-Average (5)
|
1,022
|
|
|
657
|
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|
$
|
792
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|
|
$
|
976
|
|
|
$
|
399
|
|
|
$
|
378
|
|
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$
|
1,066
|
|
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$
|
1,290
|
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Gold equivalent ounces - other metals
|
(ounces in thousands)
|
|
($ per ounce sold)
|
|
($ per ounce sold)
|
|
($ per ounce sold)
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|
Peñasquito (6)
|
656
|
|
|
256
|
|
|
$
|
539
|
|
|
$
|
980
|
|
|
$
|
295
|
|
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$
|
284
|
|
|
$
|
840
|
|
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$
|
1,471
|
|
____________________________
(1)Excludes Depreciation and amortization and Reclamation and remediation.
(2)For the three months ended September 30, 2020, there were no care and maintenance costs included in Depreciation and amortization at North America. For the nine months ended September 30, 2020, Depreciation and amortization includes $7, $16 and $28 in care and maintenance costs at Musselwhite, Éléonore and Peñasquito, respectively.
(3)All-in sustaining costs is a non-GAAP financial measure. See “Non-GAAP Financial Measures” within Part I, Item 2, Management's Discussion and Analysis. For the three months ended September 30, 2020, All-in sustaining costs includes $5 in care and maintenance costs recorded in Care and maintenance at Musselwhite. For the nine months ended September 30, 2020, All-in sustaining costs includes $28, $26 and $38 in care and maintenance costs recorded in Care and maintenance at Musselwhite, Éléonore and Peñasquito, respectively.
(4)The sale of the Red Lake complex to Evolution closed on March 31, 2020. Refer to Note 9 for more information on asset sales.
(5)All-in sustaining costs and Depreciation and amortization include expense for other regional projects.
(6)For the three months ended September 30, 2020, Peñasquito produced 7,370 thousand ounces of silver, 46 million pounds of lead and 103 million pounds of zinc. For the three months ended September 30, 2019, Peñasquito produced 7,415 thousand ounces of silver, 51 million pounds of lead and 83 million pounds of zinc. For the nine months ended September 30, 2020, Peñasquito produced 20,421 thousand ounces of silver, 130 million pounds of lead and 281 million pounds of zinc. For the nine months ended September 30, 2019, Peñasquito produced 9,158 thousand ounces of silver, 63 million pounds of lead and 108 million pounds of zinc. The Peñasquito mine was acquired during the second quarter of 2019 as part of the Newmont Goldcorp transaction.
Three months ended September 30, 2020 compared to 2019
CC&V, USA. Gold production decreased 10% primarily driven by timing of leach recoveries from Valley Leach Fill 2. Costs applicable to sales per gold ounce decreased 3% primarily driven by lower fuel costs and lower inventory adjustments. Depreciation
and amortization per gold ounce increased 2% primarily due to lower gold ounces sold. All-in sustaining costs per gold ounce decreased 1% primarily due to lower costs applicable to sales per gold ounce partially offset by higher advanced projects spend.
Musselwhite, Canada. The replacement of the underground conveyor system is in progress with construction activity at full capacity. We recognized $5 of cash care and maintenance costs included in Care and maintenance at Musselwhite in the third quarter of 2020. Due to the impact of the conveyor fire in March 2019, Musselwhite had no gold production or sales in the third quarter of 2019.
Porcupine, Canada. Gold production increased 4% primarily driven by higher ore grade mined from Borden, which achieved commercial production in the fourth quarter of 2019, a higher draw down of in-circuit inventory as compared to the prior year and higher mill recovery from the lead nitrate circuit. Costs applicable to sales per gold ounce was in line with the prior year. Depreciation and amortization per gold ounce increased 24% primarily driven by Borden reaching commercial production in the fourth quarter of 2019 and lower gold ounces sold. All-in sustaining costs per gold ounce increased 8% primarily driven by higher sustaining capital and advanced projects spend.
Éléonore, Canada. Gold production decreased 30% primarily driven by COVID-19 impact on the operations and lower ore tons mined. Costs applicable to sales per gold ounce increased 12% primarily driven by lower ore tons and grade mined, partially offset by lower costs due to less activity. Depreciation and amortization per gold ounce increased 66% primarily driven by lower gold ounces sold. All-in sustaining costs per gold ounce increased 20% primarily driven by higher costs applicable to sales per gold ounce and higher sustaining capital spend.
Peñasquito, Mexico. Gold production increased 168% primarily driven by no community-led blockade in the third quarter of 2020 compared to 2019. Gold equivalent ounces – other metals production increased 17% primarily driven by no community-led blockade in the third quarter of 2020 compared to 2019. Costs applicable to sales per gold ounce decreased 50% primarily driven by higher gold ounces sold. Costs applicable to sales per gold equivalent ounce – other metals decreased 32% primarily driven by higher gold equivalent ounces - other metals sold. Depreciation and amortization per gold ounce increased 6% primarily driven by the impact of COVID-19 on the operations, partially offset by higher gold ounces sold. Depreciation and amortization per gold equivalent ounce – other metals increased 33% primarily driven by impact of COVID-19 on the operations, partially offset by higher gold equivalent ounces - other metals sold. All-in sustaining costs per gold ounce decreased 50% primarily driven by lower costs applicable to sales per gold ounce and lower sustaining capital spend. All-in sustaining costs per gold equivalent ounce – other metals decreased 40% primarily driven by lower costs applicable to sales per gold equivalent ounce - other metals and lower sustaining capital spend.
Nine months ended September 30, 2020 compared to 2019
CC&V, USA. Gold production decreased 15% primarily driven by timing of leach recoveries from Valley Leach Fill 2 and lower ore grades milled, partially offset by higher leach production from Valley Leach Fill 1. Costs applicable to sales per gold ounce was in line with the prior year. Depreciation and amortization per gold ounce was in line with the prior year. All-in sustaining costs per gold ounce increased 1% primarily due to lower gold ounces sold.
Musselwhite, Canada. Musselwhite was acquired during the second quarter of 2019 as part of the Newmont Goldcorp transaction. Processing activities resumed in February 2020, primarily from surface stockpiles. Underground mine development and rehabilitation of the underground conveyor following the fire in March 2019 continued during the first half of 2020; however, the ramp up of Musselwhite operations and the construction of the conveyor was temporarily halted and the operations were placed on care and maintenance on March 22, 2020 in response to the COVID-19 pandemic. Milling activities at Musselwhite began ramping-up in June 2020 and replacement of the underground conveyor system is in progress with construction activity at full capacity. We recognized $28 of cash and $7 of non-cash care and maintenance costs included in Care and maintenance and Depreciation and amortization, respectively, at Musselwhite in 2020. Gold production significantly increased primarily driven by processing activities restarting in 2020 following the conveyor fire in March 2019, partially offset by the site being placed on care and maintenance. Costs applicable to sales per gold ounce decreased 67% primarily driven by higher gold ounces sold. Depreciation and amortization per gold ounce decreased 74% primarily driven by higher gold ounces sold, partially offset by the impact of the site being placed on care and maintenance. All-in sustaining costs per gold ounce decreased 73% primarily driven by higher gold ounces sold, partially offset by care and maintenance costs.
Porcupine, Canada. Porcupine was acquired during the second quarter of 2019 as part of the Newmont Goldcorp transaction. Gold production increased 88% primarily driven by nine months of operations in 2020 as compared to six months in 2019, in addition to Borden achieving commercial production in the fourth quarter of 2019. Costs applicable to sales per gold ounce decreased 18% primarily driven by higher gold ounces sold. Depreciation and amortization per gold ounce increased 15% primarily driven by Borden reaching commercial production in the fourth quarter of 2019, partially offset by higher gold ounces sold. All-in sustaining costs per gold ounce decreased 16% primarily driven by lower costs applicable to sales per gold ounce.
Éléonore, Canada. Éléonore was acquired during the second quarter of 2019 as part of the Newmont Goldcorp transaction. On March 23, 2020, the Éléonore operations were temporarily halted as the operations were placed on care and maintenance due to the Quebec government’s restriction on non-essential travel in response to the COVID-19 pandemic. The Quebec government lifted restrictions on April 13, 2020 and we commenced engagement with the Cree First Nation Grand Council and the Cree Health Board to determine an acceptable path forward to protect its workforce and communities. Éléonore began ramping-up operations and milling
activities resumed in May 2020. We recognized $26 of cash and $16 of non-cash care and maintenance costs included in Care and maintenance and Depreciation and amortization, respectively, at Éléonore in 2020. Gold production decreased 11% primarily driven by the operations being placed into care and maintenance, partially offset by nine months of operations in 2020 as compared to six months in 2019. Costs applicable to sales per gold ounce increased 7% primarily driven by lower ore grade mined and lower gold ounces sold. Depreciation and amortization per gold ounce increased 86% primarily driven by the impact of the site being placed on care and maintenance and higher amortization rates from changes in reserves and the mine plan. All-in sustaining costs per gold ounce increased 34% primarily driven by care and maintenance costs.
Peñasquito, Mexico. Peñasquito was acquired during the second quarter of 2019 as part of the Newmont Goldcorp transaction. The Peñasquito operations were temporarily halted on April 12, 2020 as the mine was placed on care and maintenance due to the Mexico federal government issuing a decree mandating the temporary suspension of all non-essential activities, including mining, in response to the COVID-19 pandemic. On May 18, 2020, production ramp up activities began with a phased approach consistent with the Mexican government’s regulations following the designation of mining as an essential activity. Milling activities resumed in May 2020 and production commenced in June 2020, prior to which, the site implemented required hygiene protocols and mobilized key operations and maintenance teams for training. We recognized $38 of cash and $28 of non-cash care and maintenance costs included in Care and maintenance and Depreciation and amortization, respectively, at Peñasquito in 2020. Gold production increased 383% primarily driven by nine months of operations in 2020 as compared to six months in 2019 and no community-led blockade in the third quarter of 2020 compared to 2019, partially offset by the site being placed on care and maintenance in the second quarter of 2020 due to the COVID-19 pandemic. Gold equivalent ounces – other metals production increased 156% primarily driven by nine months of operations in 2020 as compared to six months in 2019 and no community-led blockade in the third quarter of 2020 compared to 2019, partially offset by the site being placed on care and maintenance in the second quarter of 2020 due to the COVID-19 pandemic. Costs applicable to sales per gold ounce decreased 51% primarily driven by higher gold ounces sold. Costs applicable to sales per gold equivalent ounce – other metals decreased 45% primarily driven by higher gold equivalent ounces - other metals sold. Depreciation and amortization per gold ounce increased 10% primarily driven by the impact of the site being placed on care and maintenance in the second quarter of 2020 due to the COVID-19 pandemic, partially offset by higher gold ounces sold. Depreciation and amortization per gold equivalent ounce – other metals increased 4% primarily driven by the site being placed on care and maintenance in the second quarter of 2020 due to the COVID-19 pandemic, partially offset by higher gold equivalent - other metals sold. All-in sustaining costs per gold ounce decreased 51% primarily driven by lower costs applicable to sales per gold ounce, partially offset by care and maintenance costs. All-in sustaining costs per gold equivalent ounce – other metals decreased 43% primarily driven by lower costs applicable to sales per gold equivalent ounce - other metals, partially offset by care and maintenance costs.
South America Operations
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|
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|
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|
|
|
|
|
|
|
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|
|
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|
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|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gold or Other Metals Produced
|
|
Costs Applicable to Sales (1)
|
|
Depreciation and Amortization (2)
|
|
All-In Sustaining Costs (3)
|
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
Three Months Ended September 30,
|
(ounces in thousands)
|
|
($ per ounce sold)
|
|
($ per ounce sold)
|
|
($ per ounce sold)
|
|
Yanacocha
|
80
|
|
|
143
|
|
|
$
|
1,009
|
|
|
$
|
720
|
|
|
$
|
329
|
|
|
$
|
226
|
|
|
$
|
1,325
|
|
|
$
|
881
|
|
|
Merian
|
106
|
|
|
124
|
|
|
809
|
|
|
616
|
|
|
252
|
|
|
191
|
|
|
917
|
|
|
761
|
|
|
Cerro Negro
|
46
|
|
|
108
|
|
|
850
|
|
|
663
|
|
|
670
|
|
|
235
|
|
|
1,346
|
|
|
860
|
|
|
Total / Weighted Average (4)
|
232
|
|
|
375
|
|
|
$
|
885
|
|
|
$
|
669
|
|
|
$
|
373
|
|
|
$
|
225
|
|
|
$
|
1,162
|
|
|
$
|
841
|
|
|
Yanacocha (48.65%)
|
(40)
|
|
|
(68)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Merian (25.00%)
|
(27)
|
|
|
(32)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Attributable to Newmont
|
165
|
|
|
275
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Attributable gold from equity method investments (5)
|
(ounces in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pueblo Viejo (40%)
|
87
|
|
|
94
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gold or Other Metals Produced
|
|
Costs Applicable to Sales (1)
|
|
Depreciation and Amortization (2)
|
|
All-In Sustaining Costs (3)
|
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
Nine Months Ended September 30,
|
(ounces in thousands)
|
|
($ per ounce sold)
|
|
($ per ounce sold)
|
|
($ per ounce sold)
|
|
Yanacocha
|
270
|
|
|
426
|
|
|
$
|
1,012
|
|
|
$
|
710
|
|
|
$
|
369
|
|
|
$
|
200
|
|
|
$
|
1,358
|
|
|
$
|
895
|
|
|
Merian
|
339
|
|
|
398
|
|
|
710
|
|
|
555
|
|
|
219
|
|
|
176
|
|
|
811
|
|
|
672
|
|
|
Cerro Negro
|
144
|
|
|
203
|
|
|
748
|
|
|
648
|
|
|
670
|
|
|
340
|
|
|
1,271
|
|
|
833
|
|
|
Total / Weighted Average (4)
|
753
|
|
|
1,027
|
|
|
$
|
824
|
|
|
$
|
638
|
|
|
$
|
371
|
|
|
$
|
229
|
|
|
$
|
1,111
|
|
|
$
|
803
|
|
|
Yanacocha (48.65%)
|
(132)
|
|
|
(207)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Merian (25.00%)
|
(85)
|
|
|
(100)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Attributable to Newmont
|
536
|
|
|
720
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Attributable gold from equity method investments (5)
|
(ounces in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pueblo Viejo (40%)
|
256
|
|
|
169
|
|
|
|
|
|
|
|
|
|
|
|
|
|
___________________________
(1)Excludes Depreciation and amortization and Reclamation and remediation.
(2)For the three months ended September 30, 2020, Depreciation and amortization includes $9 in care and maintenance costs at Cerro Negro. For the nine months ended September 30, 2020, Depreciation and amortization includes $7 and $28 in care and maintenance costs at Yanacocha and Cerro Negro, respectively.
(3)All-in sustaining costs is a non-GAAP financial measure. See “Non-GAAP Financial Measures” within Part I, Item 2, Management's Discussion and Analysis. For the three months ended September 30, 2020, All-in sustaining costs includes $2, $18 and $1 in care and maintenance costs recorded in Care and maintenance at Yanacocha, Cerro Negro and Other South America, respectively. For the nine months ended September 30, 2020, All-in sustaining costs includes $27, $50 and $2 in care and maintenance costs recorded in Care and maintenance at Yanacocha, Cerro Negro and Other South America, respectively.
(4)All-in sustaining costs and Depreciation and amortization include expense for other regional projects.
(5)Income and expenses of equity method investments are included in Equity income (loss) of affiliates. Refer to Note 12 to our Condensed Consolidated Financial Statements for further discussion of our equity method investments.
Three months ended September 30, 2020 compared to 2019
Yanacocha, Peru. Yanacocha operations continued to ramp up operations to normal levels in the third quarter of 2020. We recognized $2 of cash care and maintenance costs included in Care and maintenance at Yanacocha in the third quarter of 2020. During the third quarter of 2020, gold production decreased 44% primarily due to lower leach production as the operation ramped up from the quarantine in the second quarter of 2020 due to the COVID-19 pandemic, and lower ore grade milled as a result of lower ore grade mined and lower recovery. Costs applicable to sales per gold ounce increased 40% primarily due to higher strip ratio and lower ore grade mined, partially offset by higher by-product credits. Depreciation and amortization per gold ounce increased 46% primarily due to higher amortization rates as a result of Quecher Main achieving commercial production in the fourth quarter of 2019 and lower gold ounces sold. All-in sustaining costs per gold ounce increased 50% primarily due to higher costs applicable to sales per gold ounce and care and maintenance costs.
Merian, Suriname. Gold production decreased 15% primarily due to lower ore grade milled, partially offset by a draw-down as compared to a build-up of in-circuit ounces in the prior year. Costs applicable to sales per gold ounce increased 31% primarily due to a higher strip ratio, higher gold price-driven royalties and lower gold ounces sold. Depreciation and amortization per gold ounce increased 32% due to lower gold ounces sold and higher amortization rates from asset additions. All-in sustaining costs per gold ounce increased 20% primarily due to higher costs applicable to sales per gold ounce, partially offset by lower sustaining capital spend.
Cerro Negro, Argentina. Cerro Negro continued to operate at reduced levels while managing ongoing COVID-19 related travel restrictions and collaborating with local authorities and trade unions. We recognized $18 of cash and $9 of non-cash care and maintenance costs included in Care and maintenance and Depreciation and amortization, respectively, at Cerro Negro in the third quarter of 2020. Gold production decreased 57% primarily due to the impact on operations of governmental COVID-19 restrictions, resulting in limited ore availability. Costs applicable to sales per gold ounce increased 28% primarily driven by lower gold ounces sold and lower by-product credits. Depreciation and amortization per gold ounce increased 185% primarily driven by the impact of COVID-19 on the operations resulting in lower gold ounces sold. All-in sustaining costs per gold ounce increased 57% primarily driven by care and maintenance costs and higher costs applicable to sales per gold ounces.
Pueblo Viejo, Dominican Republic. Gold production decreased 7% primarily driven by lower ore grade milled. Refer to Note 12 to our Condensed Consolidated Financial Statements for further discussion of our equity method investments.
Nine months ended September 30, 2020 compared to 2019
Yanacocha, Peru. On March 16, 2020 the Yanacocha operations were temporarily halted as the operations were placed on care and maintenance due to government travel restrictions in-country in response to the COVID-19 pandemic. While in care and
maintenance, limited personnel remained on-site to perform essential work, including security, water treatment, environmental protection and gold production continued from leach pads. In May 2020, milling operations resumed following the confirmation that the Peru economic reactivation plan allowed surface mining. We recognized $27 of cash and $7 of non-cash care and maintenance costs included in Care and maintenance and Depreciation and amortization, respectively, at Yanacocha in 2020. Gold production decreased 37% primarily due to lower ore grade milled as a result of lower ore grade mined, in addition to the site being placed on care and maintenance which negatively impacted mill throughput and leach pad production. Costs applicable to sales per gold ounce increased 43% primarily due to lower ore grade mined, higher strip ratio and higher leach pad inventory adjustments. Depreciation and amortization per gold ounce increased 85% primarily due to higher amortization rates as a result of Quecher Main achieving commercial production in the fourth quarter of 2019, the impact of the site being placed on care and maintenance and higher leach pad inventory adjustments. All-in sustaining costs per gold ounce increased 52% primarily due to higher costs applicable to sales per gold ounce and care and maintenance costs.
Merian, Suriname. Gold production decreased 15% primarily due to lower ore grade milled as a result of lower ore grade mined. Costs applicable to sales per gold ounce increased 28% primarily due to lower ore grade mined, higher strip ratio and higher gold price-driven royalties. Depreciation and amortization per gold ounce increased 24% due to lower gold ounces sold and higher amortization rates from asset additions. All-in sustaining costs per gold ounce increased 21% primarily due to higher costs applicable to sales per gold ounce, partially offset by lower sustaining capital spend.
Cerro Negro, Argentina. Cerro Negro was acquired during the second quarter of 2019 as part of the Newmont Goldcorp transaction. On March 20, 2020 the Cerro Negro operations were temporarily halted as the operations were placed on care and maintenance due to Argentina suspending all commercial flights and inter-province transportation in response to the COVID-19 pandemic. Essential activities to maintain infrastructure, continue environmental management, provide security and perform ground control requirements continued while the operations were in care and maintenance. In early May, the operations began implementing a safe restart plan, remobilizing its workforce and limited milling activities resumed. We recognized $50 of cash and $28 of non-cash care and maintenance costs included in Care and maintenance and Depreciation and amortization, respectively, at Cerro Negro in 2020. Gold production decreased 29% primarily driven by the operations being placed into care and maintenance, partially offset by nine months of operations in 2020 as compared to six months in 2019. Costs applicable to sales per gold ounce increased 15% primarily driven by lower gold ounces sold. Depreciation and amortization per gold ounce increased 97% primarily driven by the impact of the site being placed on care and maintenance and lower gold ounces sold. All-in sustaining costs per gold ounce increased 53% primarily driven by care and maintenance costs and higher costs applicable to sales per gold ounce.
Pueblo Viejo, Dominican Republic. Our equity method investment in Pueblo Viejo was acquired during the second quarter of 2019 as part of the Newmont Goldcorp transaction. Gold production increased 51% primarily due to nine months of operations in 2020 as compared to six months in 2019. Refer to Note 12 to our Condensed Consolidated Financial Statements for further discussion of our equity method investments.
Australia Operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gold or Other Metals Produced
|
|
Costs Applicable to Sales (1)
|
|
Depreciation and Amortization
|
|
All-In Sustaining Costs (2)
|
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
Three Months Ended September 30,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gold
|
(ounces in thousands)
|
|
($ per ounce sold)
|
|
($ per ounce sold)
|
|
($ per ounce sold)
|
|
Boddington
|
178
|
|
|
167
|
|
|
$
|
846
|
|
|
$
|
813
|
|
|
$
|
150
|
|
|
$
|
151
|
|
|
$
|
985
|
|
|
$
|
958
|
|
|
Tanami
|
131
|
|
|
114
|
|
|
478
|
|
|
573
|
|
|
228
|
|
|
220
|
|
|
723
|
|
|
758
|
|
|
Kalgoorlie (3)
|
—
|
|
|
58
|
|
|
—
|
|
|
996
|
|
|
—
|
|
|
109
|
|
|
—
|
|
|
1,141
|
|
|
Total/Weighted-Average (4)
|
309
|
|
|
339
|
|
|
$
|
690
|
|
|
$
|
768
|
|
|
$
|
188
|
|
|
$
|
171
|
|
|
$
|
889
|
|
|
$
|
944
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gold equivalent ounces - other metals
|
(ounces in thousands)
|
|
($ per ounce sold)
|
|
($ per ounce sold)
|
|
($ per ounce sold)
|
|
Boddington (5)
|
35
|
|
|
33
|
|
|
$
|
840
|
|
|
$
|
758
|
|
|
$
|
153
|
|
|
$
|
145
|
|
|
$
|
998
|
|
|
$
|
907
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gold or Other Metals Produced
|
|
Costs Applicable to Sales (1)
|
|
Depreciation and Amortization
|
|
All-In Sustaining Costs (2)
|
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
Nine Months Ended September 30,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gold
|
(ounces in thousands)
|
|
($ per ounce sold)
|
|
($ per ounce sold)
|
|
($ per ounce sold)
|
|
Boddington
|
488
|
|
|
507
|
|
|
$
|
873
|
|
|
$
|
825
|
|
|
$
|
154
|
|
|
$
|
153
|
|
|
$
|
1,046
|
|
|
$
|
949
|
|
|
Tanami
|
373
|
|
|
361
|
|
|
505
|
|
|
549
|
|
|
210
|
|
|
191
|
|
|
707
|
|
|
725
|
|
|
Kalgoorlie (3)
|
—
|
|
|
170
|
|
|
—
|
|
|
942
|
|
|
—
|
|
|
110
|
|
|
—
|
|
|
1,090
|
|
|
Total/Weighted-Average (4)
|
861
|
|
|
1,038
|
|
|
$
|
712
|
|
|
$
|
749
|
|
|
$
|
184
|
|
|
$
|
164
|
|
|
$
|
914
|
|
|
$
|
911
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gold equivalent ounces - other metals
|
(ounces in thousands)
|
|
($ per ounce sold)
|
|
($ per ounce sold)
|
|
($ per ounce sold)
|
|
Boddington (5)
|
94
|
|
|
104
|
|
|
$
|
842
|
|
|
$
|
819
|
|
|
$
|
154
|
|
|
$
|
155
|
|
|
$
|
1,032
|
|
|
$
|
966
|
|
____________________________
(1)Excludes Depreciation and amortization and Reclamation and remediation.
(2)All-in sustaining costs is a non-GAAP financial measure. See “Non-GAAP Financial Measures” within Part I, Item 2, Management's Discussion and Analysis.
(3)The sale of our 50% interest in Kalgoorlie was completed on January 2, 2020. Refer to Note 9 for more information on asset sales.
(4)All-in sustaining costs and Depreciation and amortization include expense for other regional projects.
(5)For the three months ended March 31, 2020 and 2019, Boddington produced 15 million and 14 million pounds of copper, respectively. For the nine months ended September 30, 2020 and 2019, Boddington produced 41 million and 45 million pounds of copper, respectively.
Three months ended September 30, 2020 compared to 2019
Boddington, Australia. Gold production increased 7% primarily due to higher mill throughput and recovery rate improvements. Gold equivalent ounces – other metals production increased 6% primarily due to higher mill throughput and recovery rate improvements. Costs applicable to sales per gold ounce increased 4% primarily due to unfavorable Australian dollar foreign currency exchange rate and higher gold price driven-royalties, partially offset by lower maintenance costs. Costs applicable to sales per gold equivalent ounce – other metals increased 11% primarily due to unfavorable Australian dollar foreign currency exchange rate and lower gold equivalent ounces - other metals sold, partially offset by lower maintenance costs. Depreciation and amortization per gold ounce decreased 1% primarily due to higher gold ounces produced. Depreciation and amortization per gold equivalent ounce – other metals increased 6% primarily due to lower gold equivalent ounces - other metals sold. All-in sustaining costs per gold ounce increased 3% primarily due to higher costs applicable to sales per gold ounce, partially offset by lower sustaining capital spend. All-in sustaining costs per gold equivalent ounce – other metals increased 10% primarily driven by higher costs applicable to sales per gold equivalent ounce - other metals.
Tanami, Australia. Gold production increased 15% primarily due to higher ore grade milled as a result of higher ore grade mined, partially offset by lower throughput. Costs applicable to sales per gold ounce decreased 17% primarily due to higher gold ounces sold and lower operating costs, partially offset by unfavorable Australian dollar foreign currency exchange rate and higher gold-price driven royalties. Depreciation and amortization per gold ounce increased 4% primarily due to higher amortization rates from asset additions, partially offset by higher gold ounces sold. All-in sustaining costs per gold ounce decreased 5% primarily due to lower costs applicable to sales per gold ounce, partially offset by higher sustaining capital spend.
Nine months ended September 30, 2020 compared to 2019
Boddington, Australia. Gold production decreased 4% primarily due to lower ore grade milled as a result of lower ore grade mined. Gold equivalent ounces – other metals production decreased 10% primarily due to lower ore grade milled as a result of lower ore grade mined. Costs applicable to sales per gold ounce increased 6% primarily due to lower gold ounces sold, higher mill maintenance costs, higher co-product allocation of costs to gold and higher gold price-driven royalties, partially offset by a favorable Australian dollar foreign currency exchange rate and no stockpile inventory adjustments. Costs applicable to sales per gold equivalent ounce – other metals increased 3% primarily due to lower gold equivalent ounces - other metals sold and higher mill maintenance costs, partially offset by a favorable Australian dollar foreign currency exchange rate, no stockpile inventory adjustments and lower co-product allocation of costs to copper. Depreciation and amortization per gold ounce increased 1% primarily due to lower gold ounces sold, partially offset by no stockpile inventory adjustments. Depreciation and amortization per gold equivalent ounce – other metals decreased 1% primarily due to lower co-product allocation of costs to other metals and no stockpile inventory adjustments, partially offset by lower gold equivalent ounces - other metals sold. All-in sustaining costs per gold ounce increased 10% primarily due to higher costs applicable to sales per gold ounce and higher sustaining capital spend. All-in sustaining costs per gold equivalent ounce – other metals increased 7% primarily due to higher costs applicable to sales per gold equivalent ounces - other metals and higher sustaining capital spend.
Tanami, Australia. Gold production increased 3% primarily due to higher mill throughput as a result of higher ore tons mined, partially offset by lower ore grade milled as a result of lower ore grade mined. Costs applicable to sales per gold ounce decreased 8%
primarily due to a favorable Australian dollar foreign currency exchange rate, lower power costs and higher gold ounces sold, partially offset by higher gold-price driven royalties. Depreciation and amortization per gold ounce increased 10% primarily due to incremental depreciation from the Tanami Power Plant achieving commercial production in March 2019, in addition to other asset additions. All-in sustaining costs per gold ounce decreased 2% primarily due to lower costs applicable to sales per gold ounce, partially offset by higher sustaining capital spend.
Africa Operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gold or Other Metals Produced
|
|
Costs Applicable to Sales (1)
|
|
Depreciation and Amortization
|
|
All-In Sustaining Costs (2)
|
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
Three Months Ended September 30,
|
(ounces in thousands)
|
|
($ per ounce sold)
|
|
($ per ounce sold)
|
|
($ per ounce sold)
|
|
Ahafo
|
139
|
|
|
162
|
|
|
$
|
733
|
|
|
$
|
617
|
|
|
$
|
291
|
|
|
$
|
256
|
|
|
$
|
912
|
|
|
$
|
811
|
|
|
Akyem
|
90
|
|
|
105
|
|
|
634
|
|
|
484
|
|
|
328
|
|
|
319
|
|
|
775
|
|
|
612
|
|
|
Total / Weighted Average (3)
|
229
|
|
|
267
|
|
|
$
|
693
|
|
|
$
|
563
|
|
|
$
|
306
|
|
|
$
|
282
|
|
|
$
|
865
|
|
|
$
|
741
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gold or Other Metals Produced
|
|
Costs Applicable to Sales (1)
|
|
Depreciation and Amortization
|
|
All-In Sustaining Costs (2)
|
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
Nine Months Ended September 30,
|
(ounces in thousands)
|
|
($ per ounce sold)
|
|
($ per ounce sold)
|
|
($ per ounce sold)
|
|
Ahafo
|
342
|
|
|
458
|
|
|
$
|
783
|
|
|
$
|
621
|
|
|
$
|
311
|
|
|
$
|
253
|
|
|
$
|
983
|
|
|
$
|
820
|
|
|
Akyem
|
266
|
|
|
317
|
|
|
612
|
|
|
537
|
|
|
326
|
|
|
363
|
|
|
750
|
|
|
691
|
|
|
Total / Weighted Average (3)
|
608
|
|
|
775
|
|
|
$
|
707
|
|
|
$
|
586
|
|
|
$
|
318
|
|
|
$
|
299
|
|
|
$
|
889
|
|
|
$
|
776
|
|
____________________________
(1)Excludes Depreciation and amortization and Reclamation and remediation.
(2)All-in sustaining costs is a non-GAAP financial measure. See “Non-GAAP Financial Measures” within Part I, Item 2, Management's Discussion and Analysis.
(3)All-in sustaining costs and Depreciation and amortization include expense for other regional projects.
Three months ended September 30, 2020 compared to 2019
Ahafo, Ghana. Gold production decreased 14% primarily due to lower ore grade milled as a result of lower ore grade mined from the Subika pit, partially offset by higher throughput due to the Ahafo Mill Expansion project achieving commercial production in the fourth quarter of 2019. Costs applicable to sales per gold ounce increased 19% primarily due to lower ore grade mined and higher gold price-related royalties. Depreciation and amortization per gold ounce increased 14% primarily due to higher amortization from the Ahafo Mill Expansion, which achieved commercial production in the fourth quarter of 2019, and lower gold ounces sold. All-in sustaining costs per gold ounce increased 12% primarily due to higher costs applicable to sales per gold ounce and higher reclamation costs, partially offset by lower advanced projects spend and lower sustaining capital spend.
Akyem, Ghana. Gold production decreased 14% primarily due to lower ore grade milled, partially offset by higher mill throughput. Costs applicable to sales per gold ounce increased 31% primarily driven by higher strip ratio, lower gold ounces sold and higher gold price-related royalties. Depreciation and amortization per gold ounce increased 3% primarily due to lower gold ounces sold, partially offset by lower amortization rates due to a longer reserve life. All-in sustaining costs per gold ounce increased 27% primarily due to higher costs applicable to sales per gold ounce and higher sustaining capital spend, partially offset by lower reclamation costs.
Nine months ended September 30, 2020 compared to 2019
Ahafo, Ghana. Gold production decreased 25% primarily due to lower ore grade milled as a result of lower ore grade mined from the Subika pit, partially offset by higher throughput due to the Ahafo Mill Expansion project achieving commercial production in the fourth quarter of 2019. Costs applicable to sales per gold ounce increased 26% primarily due to lower ore grade mined, higher strip ratio, higher mill maintenance costs and higher gold price-related royalties. Depreciation and amortization per gold ounce increased 23% primarily due to higher amortization from the Ahafo Mill Expansion, which achieved commercial production in the fourth quarter of 2019, and lower gold ounces sold. All-in sustaining costs per gold ounce increased 20% primarily due to higher costs applicable to sales per gold ounce, partially offset by lower advanced projects spend and lower sustaining capital spend.
Akyem, Ghana. Gold production decreased 16% primarily due to lower ore grade milled, partially offset by higher mill throughput. Costs applicable to sales per gold ounce increased 14% primarily due to lower gold ounces sold and higher gold price-related royalties, partially offset by no stockpile inventory adjustment. Depreciation and amortization per gold ounce decreased 10% primarily due to lower amortization rates due to a longer reserve life and no stockpile inventory adjustment, partially offset by lower gold ounces sold. All-in sustaining costs per gold ounce increased 9% primarily due to higher costs applicable to sales per gold ounce, partially offset by lower reclamation and sustaining capital spend.
Nevada Operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gold or Other Metals Produced
|
|
Costs Applicable to Sales (1)
|
|
Depreciation and Amortization
|
|
All-In Sustaining Costs (2)
|
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
Three Months Ended September 30,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gold
|
(ounces in thousands)
|
|
($ per ounce sold)
|
|
($ per ounce sold)
|
|
($ per ounce sold)
|
|
Nevada Gold Mines
|
337
|
|
|
344
|
|
|
$
|
761
|
|
|
$
|
701
|
|
|
$
|
445
|
|
|
$
|
446
|
|
|
$
|
904
|
|
|
$
|
920
|
|
|
Carlin
|
—
|
|
|
—
|
|
|
—
|
|
|
854
|
|
|
—
|
|
|
266
|
|
|
—
|
|
|
854
|
|
|
Phoenix
|
—
|
|
|
—
|
|
|
—
|
|
|
1,094
|
|
|
—
|
|
|
354
|
|
|
—
|
|
|
1,187
|
|
|
Twin Creeks
|
—
|
|
|
—
|
|
|
—
|
|
|
340
|
|
|
—
|
|
|
109
|
|
|
—
|
|
|
340
|
|
|
Long Canyon
|
—
|
|
|
—
|
|
|
—
|
|
|
692
|
|
|
—
|
|
|
670
|
|
|
—
|
|
|
692
|
|
|
Total/Weighted-Average (3)
|
337
|
|
|
344
|
|
|
$
|
761
|
|
|
$
|
711
|
|
|
$
|
445
|
|
|
$
|
434
|
|
|
$
|
904
|
|
|
$
|
915
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gold or Other Metals Produced
|
|
Costs Applicable to Sales (1)
|
|
Depreciation and Amortization
|
|
All-In Sustaining Costs (2)
|
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
Nine Months Ended September 30,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gold
|
(ounces in thousands)
|
|
($ per ounce sold)
|
|
($ per ounce sold)
|
|
($ per ounce sold)
|
|
Nevada Gold Mines
|
992
|
|
|
344
|
|
|
$
|
764
|
|
|
$
|
701
|
|
|
$
|
431
|
|
|
$
|
446
|
|
|
$
|
936
|
|
|
$
|
920
|
|
|
Carlin
|
—
|
|
|
404
|
|
|
—
|
|
|
878
|
|
|
—
|
|
|
261
|
|
|
—
|
|
|
1,076
|
|
|
Phoenix
|
—
|
|
|
96
|
|
|
—
|
|
|
981
|
|
|
—
|
|
|
281
|
|
|
—
|
|
|
1,149
|
|
|
Twin Creeks
|
—
|
|
|
162
|
|
|
—
|
|
|
661
|
|
|
—
|
|
|
178
|
|
|
—
|
|
|
830
|
|
|
Long Canyon
|
—
|
|
|
96
|
|
|
—
|
|
|
376
|
|
|
—
|
|
|
377
|
|
|
—
|
|
|
466
|
|
|
Total/Weighted-Average (3)
|
992
|
|
|
1,102
|
|
|
$
|
764
|
|
|
$
|
761
|
|
|
$
|
431
|
|
|
$
|
317
|
|
|
$
|
936
|
|
|
$
|
956
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gold equivalent ounces - other metals
|
(ounces in thousands)
|
|
($ per ounce sold)
|
|
($ per ounce sold)
|
|
($ per ounce sold)
|
|
Phoenix (4)
|
—
|
|
|
35
|
|
|
$
|
—
|
|
|
$
|
750
|
|
|
$
|
—
|
|
|
$
|
243
|
|
|
$
|
—
|
|
|
$
|
894
|
|
____________________________
(1)Excludes Depreciation and amortization and Reclamation and remediation.
(2)All-in sustaining costs is a non-GAAP financial measure. See “Non-GAAP Financial Measures” within Part I, Item 2, Management's Discussion and Analysis.
(3)All-in sustaining costs and Depreciation and amortization include expense for other regional projects.
(4)For the nine months ended September 30, 2019, the Phoenix mine in Nevada produced 15 million pounds of copper. The Phoenix mine site was contributed to NGM, effective July 1, 2019, at which point copper became a by-product.
Three months ended September 30, 2020 compared to 2019
Nevada Gold Mines. Attributable gold production decreased 2% as lower production at Turquoise Ridge (including Twin Creeks) and Cortez of 21% and 10%, respectively, was only partially offset by 79% higher production at Long Canyon and 19% higher production at Phoenix. Production at Carlin (including Goldstrike) comprised over half of Nevada Gold Mines production and was consistent with the comparable period last year. The lower production at Turquoise Ridge was due to lower mill throughput and ore grade while the lower production at Cortez was due to the timing of leach recoveries. Higher production at Long Canyon was driven by higher grades mined and Phoenix production was also higher from higher grades, as well as higher mill recoveries.
Costs applicable to sales per gold ounce increased 9% primarily due to 49% higher costs applicable to sales per gold ounce at Cortez from higher waste stripping, which was capitalized as pre-production stripping last year, and 20% higher costs at Turquoise Ridge impacted by the lower ore grade and production. Long Canyon costs applicable to sales per gold ounce was 28% lower, primarily due to the higher production, while 43% lower costs applicable to sales per gold ounce at Phoenix were favorably impacted by higher volumes. Costs applicable to sales per gold ounce at Carlin were consistent with the comparable period last year, increasing 4% impacted by slightly lower production.
Depreciation and amortization per gold ounce was in line with the prior year. Lower depreciation and amortization per gold ounce at Carlin and Turquoise Ridge of 18% and 12%, respectively, was due primarily to lower amortization rates. This was mostly offset by higher depreciation and amortization per gold ounce at Cortez of 21%, driven by lower production.
All-in sustaining costs per gold ounce decreased 2% primarily due to favorable results at Phoenix and Long Canyon which were lower by 48% and 26%, respectively. Both Phoenix and Long Canyon were favorably impacted by lower costs applicable to sales. These favorable results were only partially offset by 31% higher all-in sustaining costs per gold ounce at Cortez and 16% higher all-in
sustaining costs per gold ounce at Turquoise Ridge, both impacted by lower volumes. Carlin was consistent with the comparable period last year.
Nine months ended September 30, 2020 compared to 2019
Nevada Gold Mines. Attributable gold production increased 188% primarily due to nine months of operations in 2020 as compared to three months of operations in 2019. Cost metrics were impacted by nine months of operations in 2020 as compared to three months of operations in 2019.
Carlin, USA. The Carlin mine site was included in the transaction with Barrick that closed on July 1, 2019 establishing the Nevada Gold Mines joint venture.
Phoenix, USA. The Phoenix mine site was included in the transaction with Barrick that closed on July 1, 2019 establishing the Nevada Gold Mines joint venture.
Twin Creeks, USA. The Twin Creeks mine site was included in the transaction with Barrick that closed on July 1, 2019 establishing the Nevada Gold Mines joint venture.
Long Canyon, USA. The Long Canyon mine site was included in the transaction with Barrick that closed on July 1, 2019 establishing the Nevada Gold Mines joint venture.
Foreign Currency Exchange Rates
Our foreign operations sell their gold, copper, silver, lead and zinc production based on U.S. dollar metal prices. Fluctuations in foreign currency exchange rates do not have a material impact on our revenue since gold, copper, silver, lead and zinc are sold throughout the world in U.S. dollars. Despite selling gold and silver in London, we have no exposure to the euro or the British pound.
Foreign currency exchange rates can increase or decrease profits to the extent costs are paid in foreign currencies, including the Australian dollar, the Canadian dollar, the Mexican peso, the Argentine peso, the Peruvian sol and the Surinamese dollar. Approximately 45% and 35% of Costs applicable to sales were paid in currencies other than the U.S. dollar during the three months ended September 30, 2020 and 2019, respectively, including approximately 18% denominated in the Australian Dollar, 11% denominated in the Mexican Peso and 11% denominated in the Canadian Dollar in the current year. Variations in the local currency exchange rates in relation to the U.S. dollar at our foreign mining operations decreased Costs applicable to sales by $9 per ounce during the three months ended September 30, 2020, compared to the same period in 2019, primarily in Argentina. Approximately 45% and 33% of Costs applicable to sales were paid in currencies other than the U.S. dollar during the nine months ended September 30, 2020 and 2019, respectively, including approximately 18% denominated in the Australian Dollar, 11% denominated in the Canadian Dollar and 10% denominated in the Mexican Peso in the current year. Variations in the local currency exchange rates in relation to the U.S. dollar at our foreign mining operations decreased Costs applicable to sales by $19 per ounce during the nine months ended September 30, 2020, compared to the same period in 2019, primarily in Argentina.
Our Cerro Negro mine, which was acquired as part of the Newmont Goldcorp transaction and is located in Argentina, is a U.S. dollar functional currency entity. Argentina has been considered a hyperinflationary environment with a cumulative inflation rate of over 100% for the last three years. On September 1, 2019, Argentina’s central bank enacted a number of foreign currency controls in an effort to stabilize the local currency, with additional controls enacted on May 29, 2020 (“currency controls”). These currency controls include conversion requirements of export proceeds to local currency, limits on exchanges to foreign currencies and the reintroduction of affidavits to verify foreign currency transactions comply with regulations. Since the currency controls were enacted, the Company is required to convert metal sales proceeds to the Argentine Peso within five business days from receipt of cash at Cerro Negro and obtain central bank approval for any dividends or distributions to the parent company. Additionally, the Company is required to pay foreign obligations using offshore funds prior to accessing the onshore foreign exchange market. While we have balances denominated in Argentine pesos that relate to accounts payable and employee-related liabilities and tax receivables and liabilities, the majority of Cerro Negro’s activity has historically been denominated in U.S. dollars. Additionally, a component of the deferred tax liability is carried in Argentine pesos, which is impacted by fluctuations in the Argentine peso exchange rate. Most recently, on September 16, 2020, Argentina’s central bank enacted a new resolution requiring companies to refinance, with at least a two year term, sixty percent of any debt maturing between October 15, 2020 and March 31, 2021. However, this resolution does not apply to intercompany debt and we do not hold any external debt at Cerro Negro. Therefore, this newly enacted resolution, as well as other previously enacted currency controls, are not expected to have a significant impact on our financial statements.
Our Merian mine is located in the country of Suriname, which has experienced significant swings in inflation rates for the last three years. On March 24, 2020, Suriname's central bank enacted the Act Controlling Currency Transactions and Transactions Bureaus in an effort to stabilize the local currency (the "Act"), which was subsequently halted by an interim order and deemed unconstitutional by the Surinamese court. This Act includes a provision on the repatriation of export earnings and restrictions on imports; however, Newmont and the Republic of Suriname have a Mineral Agreement in place superseding these provisions. Therefore, we do not expect there to be a current or future impact to our operations or financial statements. Additionally, on September 21, 2020, the central bank of Suriname adopted a controlled floating rate system and concurrently announced a significant devaluation of the Surinamese dollar. While we have employee-related liabilities denominated in Surinamese dollars, which are impacted by this devaluation, the majority of
Merian’s activity has historically been denominated in U.S. dollars. Therefore, the devaluation of the Surinamese dollar is not expected to have a significant impact on our financial statements.
Liquidity and Capital Resources
Liquidity Overview
We have a disciplined cash allocation strategy of maintaining financial flexibility to execute our capital priorities and generate long-term value for our shareholders. Consistent with that strategy, we aim to self-fund development projects and make strategic partnerships focused on profitable growth, while reducing our debt and returning cash to stockholders through dividends and share repurchases.
During 2020, the COVID-19 pandemic has had a material impact on the global economy, the scale and duration of which remain uncertain. In an effort to protect the health and safety of our workforce, their families and neighboring communities in which we operate, we put five mine sites temporarily into care and maintenance during March and April 2020, while the remaining sites continued to operate. We worked closely with local stakeholders to resume operations at all five mine sites during the second quarter of 2020. As of September 30, 2020, Musselwhite, Éléonore and Peñasquito were fully operational while Yanacocha has ramped up to near normal operations. Cerro Negro continues to operate at reduced levels while managing ongoing COVID-19 related travel restrictions and collaborating with local authorities and trade unions.
We have not had significant shipping delays for produced metals, and third-party refineries that were previously closed have since reopened. Depending on the duration and extent of the impact of the COVID-19 pandemic, additional sites could be placed into care and maintenance; transportation industry disruptions could occur, including limitations on shipping produced metals; refineries or smelters could be temporarily closed; our supply chain could be disrupted; or we could incur credit related losses of certain financial assets, which could materially impact the Company’s results of operations, cash flows and financial condition. As of September 30, 2020, our available liquidity totals $7,756, consisting of our cash and cash equivalents of $4,828 and borrowing capacity of $2,928 available under our unsecured revolving credit facility, which we believe allows us to manage the near-term impacts of the COVID-19 pandemic on our business.
In December 2019, our Board of Directors authorized a stock repurchase program for up to $1 billion of common stock to be repurchased in the next 12 months. Through September 30, 2020, we have executed trades totaling $800 of common stock repurchases, of which $321 were settled as of September 30, 2020 and $479 were settled as of December 31, 2019. The Company’s management and board of directors also continue to monitor the timing of future share buybacks as it monitors the ongoing evolution of the COVID-19 pandemic.
In January 2020, we announced a plan to increase our quarterly dividend from $0.14 per share to $0.25 per share. In July 2020, the Board approved and declared the second quarter dividend of $0.25 per share, for a total of $201 paid in the third quarter of 2020. In October 2020, the Board approved an additional increase to our quarterly dividend from $0.25 per share to $0.40 per share to be paid in the fourth quarter of 2020. The $0.15 per share increase to the Company’s base quarterly dividend of $0.25 per share is supported by a framework to return 40 to 60 percent of incremental attributable free cash flow to shareholders that is generated above a $1,200 per ounce gold price. Newmont’s dividend framework shares incremental free cash flow with shareholders at higher gold prices. This framework is non-binding and will be periodically reviewed and reassessed by the board of directors. The declaration and payment of future dividends remains at the full discretion of the board and will depend on the Company’s financial results, cash requirements, future prospects, COVID-19 impacts and other factors deemed relevant by the board.
At September 30, 2020, the Company had $4,828 in Cash and cash equivalents, of which $1,382 was held in foreign subsidiaries and is primarily held in U.S. dollar denominated accounts with the remainder in foreign currencies readily convertible to U.S. dollars. At September 30, 2020, $438 of the consolidated cash and cash equivalents was attributable to noncontrolling interests primarily related to our Peru and Suriname operations, which is being held to fund those operations. At September 30, 2020, $1,135 in consolidated cash and cash equivalents ($706 attributable to Newmont) was held at certain foreign subsidiaries that, if repatriated, may be subject to withholding taxes. We expect that there would be no additional tax burden upon repatriation after considering the cash cost associated with the withholding taxes. We believe that our liquidity and capital resources are adequate to fund our operations and corporate activities.
We believe our existing consolidated Cash and cash equivalents, available capacity on our revolving credit facility, and cash generated from continuing operations will be adequate to satisfy working capital needs, fund future growth, meet debt obligations, pay dividends and meet other liquidity requirements for the foreseeable future. At September 30, 2020, our borrowing capacity on our revolving credit facility was $2,928 and we had no borrowings outstanding under the revolving credit facility. We do not expect any limitations on our ability to access our revolving credit facility as a result of the COVID-19 pandemic. We continue to remain compliant with covenants and there have been no impacts to-date, nor do we anticipate any negative impacts from COVID-19, on our ability to access funds available on this facility.
Our financial position was as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At September 30,
2020
|
|
At December 31,
2019
|
|
Debt
|
$
|
6,030
|
|
|
$
|
6,138
|
|
|
Lease and other financing obligations
|
647
|
|
|
696
|
|
|
Less: Cash and cash equivalents
|
(4,828)
|
|
|
(2,243)
|
|
|
Net debt
|
$
|
1,849
|
|
|
$
|
4,591
|
|
|
Borrowing capacity on revolving credit facility
|
$
|
2,928
|
|
|
$
|
2,940
|
|
|
Total liquidity (1)
|
$
|
7,756
|
|
|
$
|
5,183
|
|
____________________________
(1)Total liquidity is calculated as the total of our Cash and cash equivalents and the borrowing capacity on our revolving credit facility.
Cash Flows
Our Condensed Consolidated Statements of Cash Flows are summarized as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended September 30,
|
|
|
2020
|
|
2019
|
|
Net cash provided by (used in) operating activities of continuing operations
|
$
|
3,204
|
|
|
$
|
1,668
|
|
|
Net cash provided by (used in) operating activities of discontinued operations
|
(8)
|
|
|
(7)
|
|
|
Net cash provided by (used in) operating activities
|
$
|
3,196
|
|
|
$
|
1,661
|
|
|
|
|
|
|
|
Net cash provided by (used in) investing activities of continuing operations
|
$
|
577
|
|
|
$
|
(817)
|
|
|
Net cash provided by (used in) investing activities of discontinued operations
|
(75)
|
|
|
—
|
|
|
Net cash provided by (used in) investing activities
|
$
|
502
|
|
|
$
|
(817)
|
|
|
|
|
|
|
|
Net cash provided by (used in) financing activities
|
$
|
(1,119)
|
|
|
$
|
(1,506)
|
|
Net cash provided by (used in) operating activities of continuing operations was $3,204 during the nine months ended September 30, 2020, an increase of $1,536 from the nine months ended September 30, 2019, primarily due to a higher average realized gold price, an increase in collections on accounts receivable and a decrease in payments on other accrued liabilities balances, partially offset by lower sales volumes due to the sale of Kalgoorlie and Red Lake during 2020, lower sales volumes at certain sites experiencing reduced operations and incremental direct costs incurred in 2020 as a result of actions taken to protect against the impacts of the COVID-19 pandemic.
Net cash provided by (used in) investing activities of continuing operations was $577 during the nine months ended September 30, 2020, an increase in cash provided of $1,394 from the nine months ended September 30, 2019, primarily due to the sale of the Kalgoorlie and Red Lake operations, the sale of our investment in Continental Gold and lower capital expenditures in 2020, partially offset by net cash and cash equivalents acquired in the Newmont Goldcorp transaction in 2019.
Net cash provided by (used in) investing activities of discontinued operations was $(75) during the nine months ended September 30, 2020, an increase in cash used of $75 from the nine months ended September 30, 2019, due to the payment for the option to acquire mining and mineral rights subject to the Holt royalty obligation as part of the Kirkland Agreement.
Net cash provided by (used in) financing activities was $(1,119) during the nine months ended September 30, 2020, a decrease in cash used of $387 from the nine months ended September 30, 2019, primarily due to the issuance of 2.25% 2030 Senior Notes in 2020, the 2019 payment of a one-time special dividend related to the Newmont Goldcorp transaction, lower debt payments in 2020 and cash received for Newmont stock options exercised in 2020, partially offset by 2020 repurchases of common stock under the share buyback plan and higher regular cash dividends paid in 2020.
Capital Expenditures
Cash generated from operations is used to execute our capital priorities, which include sustaining and developing our global portfolio of long-lived assets. We consider sustaining capital as those capital expenditures that are necessary to maintain current production and execute the current mine plan. Capital expenditures to develop new operations or related to projects at existing operations, where these projects will enhance production or reserves, are considered non-sustaining or development capital. In addition, with the successful consummation of the Newmont Goldcorp transaction, the Company is focused on reprioritization of development projects in its pipeline to ensure that it executes on its capital priorities and provides long-term value to shareholders. The Company’s decision to reprioritize, sell or abandon a development project, which may include returning mining concessions to local stakeholders, could result in a future impairment charge.
For the nine months ended September 30, 2020 and 2019, we had Additions to property, plant and mine development as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2020
|
|
2019
|
|
|
Development Projects
|
|
Sustaining Capital
|
|
Total
|
|
Development Projects
|
|
Sustaining Capital
|
|
Total
|
|
North America
|
$
|
41
|
|
|
$
|
156
|
|
|
$
|
197
|
|
|
$
|
66
|
|
|
$
|
172
|
|
|
$
|
238
|
|
|
South America
|
62
|
|
|
65
|
|
|
127
|
|
|
125
|
|
|
84
|
|
|
209
|
|
|
Australia
|
81
|
|
|
139
|
|
|
220
|
|
|
43
|
|
|
125
|
|
|
168
|
|
|
Africa
|
37
|
|
|
73
|
|
|
110
|
|
|
98
|
|
|
88
|
|
|
186
|
|
|
Nevada
|
59
|
|
|
124
|
|
|
183
|
|
|
39
|
|
|
160
|
|
|
199
|
|
|
Corporate and other
|
3
|
|
|
31
|
|
|
34
|
|
|
13
|
|
|
9
|
|
|
22
|
|
|
Accrual basis
|
$
|
283
|
|
|
$
|
588
|
|
|
$
|
871
|
|
|
$
|
384
|
|
|
$
|
638
|
|
|
$
|
1,022
|
|
|
Decrease (increase) in non-cash adjustments
|
|
|
|
|
33
|
|
|
|
|
|
|
11
|
|
|
Cash basis
|
|
|
|
|
$
|
904
|
|
|
|
|
|
|
$
|
1,033
|
|
For the nine months ended September 30, 2020, development projects included Musselwhite Materials Handling and Éléonore Lower Mine Material Handling System in North America; Quecher Main and Yanacocha Sulfides in South America; Tanami Expansion 2 in Australia; Subika Mining Method Change and Ahafo North in Africa; and Goldrush Complex, Turquoise Ridge 3rd shaft and Range Front Declines at Cortez in Nevada. For the nine months ended September 30, 2019, development projects included Borden and Musselwhite Materials Handling in North America; Quecher Main and Yanacocha Sulfides projects in South America; Tanami Expansion 2 project in Australia; Ahafo North, Subika Underground, and the Ahafo Mill Expansion in Africa; and Turquoise Ridge joint venture 3rd shaft in Nevada.
For the nine months ended September 30, 2020 and 2019, sustaining capital included the following:
•North America. Capital expenditures primarily related to underground mine development, tailings facility construction, mining equipment and capitalized component purchases;
•South America. Capital expenditures primarily related to capitalized component purchases, mining equipment, reserves drilling conversion, underground mine development, tailings facility construction and infrastructure improvements;
•Australia. Capital expenditures primarily related to equipment and capitalized component purchases, underground mine development and tailings and support facilities;
•Africa. Capital expenditures primarily related to underground mine development, capitalized component purchases and tailings facility expansion; and
•Nevada. Capital expenditures primarily related to surface and underground mine development, tailings facility construction and capitalized component purchases.
Refer to our global project pipeline discussion above for additional details. Refer to Note 4 to our Condensed Consolidated Financial Statements and Part I, Item 2 Non-GAAP Financial Measures All-In Sustaining Costs for further information.
Debt
Debt and Corporate Revolving Credit Facilities
There were no material changes to our debt and corporate revolving credit facilities since December 31, 2019, except as noted in Note 22 to the Condensed Consolidated Financial Statements. Refer to Part II, Item 7 in our annual report on Form 10-K, for the year ended December 31, 2019, for information regarding our debt and corporate revolving credit facilities.
Debt Covenants
There were no material changes to our debt covenants, except as noted in Note 22 to the Condensed Consolidated Financial Statements. Refer to Part II, Item 7 in our annual report on Form 10-K, for the year ended December 31, 2019, for information regarding our debt covenants.
At September 30, 2020, we were in compliance with all existing debt covenants and provisions related to potential defaults.
Supplemental Guarantor Information
In September 2018, we filed a shelf registration statement with the SEC on Form S-3 under the Securities Act, of 1933, as amended, which enables us to issue an indeterminate number or amount of common stock, preferred stock, depository shares, debt
securities, guarantees of debt securities, warrants and units (the “Shelf Registration Statement”). Under the Shelf Registration Statement, our debt securities may be guaranteed by Newmont USA Limited (“Newmont USA”), one of our consolidated subsidiaries. These guarantees are full and unconditional, and no other of our subsidiaries guarantees any security issued and outstanding. There are no restrictions on the ability of Newmont, as issuer, or Newmont USA, as guarantor (collectively, the “Obligor Group”), to obtain funds from its subsidiaries by dividend, loan or otherwise. Additionally, the cash provided by operations of the Obligor Group and all of its subsidiaries is available to satisfy debt repayments as they become due, except to the extent of any rights of noncontrolling interests. Net assets attributable to noncontrolling interests were $916 and $950 at September 30, 2020 and December 31, 2019, respectively. All noncontrolling interests relate to non-guarantor subsidiaries.
Newmont and Newmont USA are primarily holding companies with no material operations, sources of income or assets other than equity interest in their subsidiaries and intercompany receivables or payables. Newmont USA’s primary investments are comprised of its 38.5% interest in NGM and 51.35% interest in Yanacocha. Prior to July 1, 2019, Newmont USA included certain operations from our existing Nevada mining operations, which were contributed in exchange for our 38.5% interest in NGM. For further information regarding these operations, see Note 4 to our Condensed Consolidated Financial Statements and Part I, Item 2, Management’s Discussion and Analysis, Results of Consolidated Operations. For further information regarding Newmont’s other operations, see our Condensed Consolidated Financial Statements and Part I, Item 2, Management’s Discussion and Analysis, Results of Consolidated Operations.
In addition to equity interests in subsidiaries, the Obligor Group’s balance sheets consisted primarily of the following intercompany assets, intercompany liabilities and external debt. The remaining assets and liabilities of the Obligor Group are considered immaterial at September 30, 2020 and December 31, 2019.
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|
|
|
|
Obligor Group
|
|
Newmont USA
|
|
|
September 30,
2020
|
|
December 31,
2019
|
|
September 30,
2020
|
|
December 31,
2019
|
|
Current intercompany assets
|
$
|
10,972
|
|
|
$
|
11,407
|
|
|
$
|
4,368
|
|
|
$
|
3,669
|
|
|
Non-current intercompany assets
|
$
|
2,154
|
|
|
$
|
2,286
|
|
|
$
|
330
|
|
|
$
|
472
|
|
|
Current intercompany liabilities
|
$
|
8,190
|
|
|
$
|
9,167
|
|
|
$
|
1,828
|
|
|
$
|
1,814
|
|
|
Current external debt
|
$
|
474
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
Non-current external debt
|
$
|
5,380
|
|
|
$
|
5,815
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Newmont USA's subsidiary guarantees (the “subsidiary guarantees”) are general unsecured senior obligations of Newmont USA and rank equal in right of payment to all of Newmont USA's existing and future senior unsecured indebtedness and senior in right of payment to all of Newmont USA's future subordinated indebtedness. The subsidiary guarantees are effectively junior to any secured indebtedness of Newmont USA to the extent of the value of the assets securing such indebtedness.
At September 30, 2020, Newmont USA had approximately $5,854 of consolidated indebtedness (including guaranteed debt), all of which relates to the guarantees of indebtedness of Newmont.
Under the terms of the subsidiary guarantees, holders of Newmont’s securities subject to such subsidiary guarantees will not be required to exercise their remedies against Newmont before they proceed directly against Newmont USA.
Newmont USA will be released and relieved from all its obligations under the subsidiary guarantees in certain specified circumstances, including, but not limited to, the following:
•upon the sale or other disposition (including by way of consolidation or merger), in one transaction or a series of related transactions, of a majority of the total voting power of the capital stock or other interests of Newmont USA (other than to Newmont or any of Newmont’s affiliates);
•upon the sale or disposition of all or substantially all the assets of Newmont USA (other than to Newmont or any of Newmont’s affiliates); or
•upon such time as Newmont USA ceases to guarantee more than $75 aggregate principal amount of Newmont’s debt (at September 30, 2020, Newmont USA guaranteed $600 aggregate principal amount of debt of Newmont that did not contain a similar fall-away provision).
Newmont’s debt securities are effectively junior to any secured indebtedness of Newmont to the extent of the value of the assets securing such indebtedness, and structurally subordinated to all debt and other liabilities of Newmont’s non-guarantor subsidiaries. At September 30, 2020, (i) Newmont’s total consolidated indebtedness was approximately $6,677, none of which was secured (other than $647 of Lease and other financing obligations), and (ii) Newmont’s non-guarantor subsidiaries had $6,052 of total liabilities (including trade payables, but excluding intercompany and external debt and reclamation and remediation liabilities), which would have been structurally senior to Newmont’s debt securities.
For further information on Newmont’s debt subject to the subsidiary guarantees, see Note 22 to our Condensed Consolidated Financial Statements.
Contractual Obligations
There have been no material changes in our contractual obligations since December 31, 2019, except as noted in Note 22 to the Condensed Consolidated Financial Statements. Refer to Part II, Item 7 in our annual report on Form 10-K, for the year ended December 31, 2019 for information regarding our contractual obligations.
Off-Balance Sheet Arrangements
In September 2013, the Company entered into a Letter of Credit Facility Agreement (“LC Agreement”) with BNP Paribas, New York Branch ("BNP") which established a $175 letter of credit facility for a three year period, subsequently extended to September 30, 2020, to support reclamation obligations. In September 2020, the LC Agreement terminated and the Company entered into an Uncommitted Letter of Credit Facility Agreement with BNP which established a $175 uncommitted letter of credit facility for a one-year period to support reclamation obligations.
There have been no other material changes in our off-balance sheet arrangements since December 31, 2019. Refer to Part II, Item 7 in our annual report on Form 10-K, for the year ended December 31, 2019, for information regarding our off-balance sheet arrangements.
Environmental
Our mining and exploration activities are subject to various federal and state laws and regulations governing the protection of the environment. We have made, and expect to make in the future, expenditures to comply with such laws and regulations, but cannot predict the full amount of such future expenditures. We perform a comprehensive review of our reclamation and remediation liabilities annually and review changes in facts and circumstances associated with these obligations at least quarterly.
For a complete discussion of the factors that influence our reclamation obligations and the associated risks, refer to Part II, Item 7, Managements’ Discussion and Analysis of Consolidated Financial Condition and Results of Operations under the headings “Environmental” and “Critical Accounting Policies” and refer to Part I, Item 1A, Risk Factors under the heading “Mine closure, reclamation and remediation costs for environmental liabilities may exceed the provisions we have made” for the year ended December 31, 2019, filed February 20, 2020 on Form 10-K.
For more information on the Company’s reclamation and remediation liabilities, see Notes 6 and 26 to the Condensed Consolidated Financial Statements.
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.
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:
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|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
Net income (loss) attributable to Newmont stockholders
|
$
|
839
|
|
|
$
|
2,178
|
|
|
$
|
2,005
|
|
|
$
|
2,240
|
|
|
Net income (loss) attributable to noncontrolling interests
|
17
|
|
|
26
|
|
|
22
|
|
|
83
|
|
|
Net (income) loss from discontinued operations (1)
|
(228)
|
|
|
48
|
|
|
(145)
|
|
|
100
|
|
|
Equity loss (income) of affiliates
|
(53)
|
|
|
(32)
|
|
|
(119)
|
|
|
(53)
|
|
|
Income and mining tax expense (benefit)
|
305
|
|
|
558
|
|
|
446
|
|
|
703
|
|
|
Depreciation and amortization
|
592
|
|
|
548
|
|
|
1,685
|
|
|
1,347
|
|
|
Interest expense, net
|
75
|
|
|
77
|
|
|
235
|
|
|
217
|
|
|
EBITDA
|
$
|
1,547
|
|
|
$
|
3,403
|
|
|
$
|
4,129
|
|
|
$
|
4,637
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
(Gain) loss on asset and investment sales (2)
|
$
|
(1)
|
|
|
$
|
1
|
|
|
$
|
(593)
|
|
|
$
|
(32)
|
|
|
Change in fair value of investments (3)
|
(57)
|
|
|
(19)
|
|
|
(191)
|
|
|
(75)
|
|
|
Impairment of investments (4)
|
—
|
|
|
1
|
|
|
93
|
|
|
2
|
|
|
Pension settlements and curtailments (5)
|
83
|
|
|
8
|
|
|
85
|
|
|
8
|
|
|
Loss on debt extinguishment (6)
|
—
|
|
|
—
|
|
|
77
|
|
|
—
|
|
|
COVID-19 specific costs (7)
|
32
|
|
|
—
|
|
|
67
|
|
|
—
|
|
|
Settlement costs (8)
|
26
|
|
|
2
|
|
|
34
|
|
|
2
|
|
|
Impairment of long-lived and other assets (9)
|
24
|
|
|
3
|
|
|
29
|
|
|
4
|
|
|
Goldcorp transaction and integration costs (10)
|
—
|
|
|
26
|
|
|
23
|
|
|
185
|
|
|
Restructuring and severance (11)
|
9
|
|
|
—
|
|
|
12
|
|
|
5
|
|
|
Reclamation and remediation charges (12)
|
—
|
|
|
17
|
|
|
—
|
|
|
49
|
|
|
Nevada JV transaction and integration costs (13)
|
—
|
|
|
3
|
|
|
—
|
|
|
26
|
|
|
Gain on formation of Nevada Gold Mines (14)
|
—
|
|
|
(2,366)
|
|
|
—
|
|
|
(2,366)
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA (15)
|
$
|
1,663
|
|
|
$
|
1,079
|
|
|
$
|
3,765
|
|
|
$
|
2,445
|
|
____________________________
(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)Pension settlements and curtailments, included in Other income, net, primarily represents pension settlements in 2020 and pension curtailments in 2019.
(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)Settlement costs, included in Other expense, net, primarily represents costs related to the Cedros community agreement at Penasquito in Mexico, a water related settlement at Yanacocha in Peru, mineral interest settlements at Ahafo and Akyem in Africa and other related costs, and certain costs associated with legal and other settlements for 2019.
(9)Impairment of long-lived and other assets, included in Other expense, net, represents non-cash write-downs of long-lived assets and materials and supplies inventories.
(10)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.
(11)Restructuring and severance, included in Other expense, net, primarily represents severance and related costs associated with significant organizational or operating model changes implemented by the Company for all periods presented.
(12)Reclamation and remediation charges, included in Reclamation and remediation, represent revisions to remediation plans at the Company’s former historic mining operations in 2019, including adjustments related to a review of the project cost estimates at the Dawn remediation site, as well as increased water management costs at the Con Mine.
(13)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.
(14)Gain on formation of Nevada Gold Mines, included in Gain on formation of Nevada Gold Mines, represents the difference between the fair value of our 38.5% interest in NGM and the carrying value of the Nevada mining operations contributed.
(15)Adjusted EBITDA has not been adjusted for $26 and $171 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 nine months ended September 30, 2020, respectively.
Additionally, the Company uses Pueblo Viejo EBITDA as a non-GAAP measure to evaluate the operating performance of its investment in the Pueblo Viejo mine. Pueblo Viejo EBITDA does not represent, and should not be considered an alternative to, Equity income (loss) of affiliates, as defined by GAAP, and does not necessarily indicate whether cash distributions from Pueblo Viejo will match Pueblo Viejo EBITDA or earnings from affiliates. Although the Company has the ability to exert significant influence, it does not have direct control over the operations or resulting revenues and expenses, nor does it proportionately consolidate its investment in Pueblo Viejo. The Company believes that Pueblo Viejo EBITDA provides useful information to investors and others in understanding and evaluating the operating results of its investment in Pueblo Viejo, in the same manner as management and the Board of Directors. Equity income (loss) of affiliates is reconciled to Pueblo Viejo EBITDA as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
Equity income (loss) of affiliates
|
$
|
53
|
|
|
$
|
32
|
|
|
$
|
119
|
|
|
$
|
53
|
|
|
Equity (income) loss of affiliates, excluding Pueblo Viejo (1)
|
(1)
|
|
|
7
|
|
|
16
|
|
|
12
|
|
|
Equity income (loss) of affiliates, Pueblo Viejo (1)
|
52
|
|
|
39
|
|
|
135
|
|
|
65
|
|
|
Reconciliation of Pueblo Viejo on attributable basis:
|
|
|
|
|
|
|
|
|
Income and mining tax expense (benefit)
|
45
|
|
|
20
|
|
|
111
|
|
|
44
|
|
|
Depreciation and amortization
|
18
|
|
|
21
|
|
|
52
|
|
|
45
|
|
|
|
|
|
|
|
|
|
|
|
Pueblo Viejo EBITDA
|
$
|
115
|
|
|
$
|
80
|
|
|
$
|
298
|
|
|
$
|
154
|
|
____________________________
(1)See Note 12 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
September 30, 2020
|
|
Nine Months Ended
September 30, 2020
|
|
|
|
|
per share data (1)
|
|
|
|
per share data (1)
|
|
|
|
|
basic
|
|
diluted
|
|
|
|
basic
|
|
diluted
|
|
Net income (loss) attributable to Newmont stockholders
|
$
|
839
|
|
|
$
|
1.04
|
|
|
$
|
1.04
|
|
|
$
|
2,005
|
|
|
$
|
2.49
|
|
|
$
|
2.49
|
|
|
Net loss (income) attributable to Newmont stockholders from discontinued operations (2)
|
(228)
|
|
|
(0.28)
|
|
|
(0.28)
|
|
|
(145)
|
|
|
(0.18)
|
|
|
(0.18)
|
|
|
Net income (loss) attributable to Newmont stockholders from continuing operations
|
611
|
|
|
0.76
|
|
|
0.76
|
|
|
1,860
|
|
|
2.31
|
|
|
2.31
|
|
|
(Gain) loss on asset and investment sales (3)
|
(1)
|
|
|
—
|
|
|
—
|
|
|
(593)
|
|
|
(0.73)
|
|
|
(0.73)
|
|
|
Change in fair value of investments (4)
|
(57)
|
|
|
(0.07)
|
|
|
(0.07)
|
|
|
(191)
|
|
|
(0.24)
|
|
|
(0.24)
|
|
|
Impairment of investments (5)
|
—
|
|
|
—
|
|
|
—
|
|
|
93
|
|
|
0.11
|
|
|
0.11
|
|
|
Pension settlement (6)
|
83
|
|
|
0.10
|
|
|
0.10
|
|
|
85
|
|
|
0.10
|
|
|
0.10
|
|
|
Loss on debt extinguishment (7)
|
—
|
|
|
—
|
|
|
—
|
|
|
77
|
|
|
0.09
|
|
|
0.09
|
|
|
COVID-19 specific costs, net (8)
|
27
|
|
|
0.03
|
|
|
0.03
|
|
|
62
|
|
|
0.08
|
|
|
0.08
|
|
|
Settlement costs, net (9)
|
23
|
|
|
0.03
|
|
|
0.03
|
|
|
31
|
|
|
0.04
|
|
|
0.04
|
|
|
Impairment of long-lived and other assets (10)
|
24
|
|
|
0.03
|
|
|
0.03
|
|
|
29
|
|
|
0.04
|
|
|
0.04
|
|
|
Goldcorp transaction and integration costs (11)
|
—
|
|
|
—
|
|
|
—
|
|
|
23
|
|
|
0.03
|
|
|
0.03
|
|
|
Restructuring and severance, net (12)
|
9
|
|
|
0.01
|
|
|
0.01
|
|
|
11
|
|
|
0.01
|
|
|
0.01
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax effect of adjustments (13)
|
(32)
|
|
|
(0.03)
|
|
|
(0.04)
|
|
|
93
|
|
|
0.11
|
|
|
0.11
|
|
|
Valuation allowance and other tax adjustments, net (14)
|
10
|
|
|
0.01
|
|
|
0.01
|
|
|
(296)
|
|
|
(0.35)
|
|
|
(0.36)
|
|
|
Adjusted net income (loss) (15)
|
$
|
697
|
|
|
$
|
0.87
|
|
|
$
|
0.86
|
|
|
$
|
1,284
|
|
|
$
|
1.60
|
|
|
$
|
1.59
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares (millions): (16)
|
|
|
803
|
|
|
806
|
|
|
|
|
804
|
|
|
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)Pension settlements, included in Other income, net, represents pension settlement charges in 2020.
(7)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.
(8)COVID-19 specific costs, net, 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. Amounts are presented net of income (loss) attributable to noncontrolling interests of $(5) and $(5), respectively.
(9)Settlement costs, net, included in Other expense, net, primarily represents costs related to the Cedros community agreement at Penasquito in Mexico, a water related settlement at Yanacocha in Peru, mineral interest settlements at Ahafo and Akyem in Africa and other related costs. Amounts are presented net of income (loss) attributable to noncontrolling interests of $(3) and $(3), respectively.
(10)Impairment of long-lived and other assets, included in Other expense, net, represents non-cash write-downs of long-lived assets and materials and supplies inventories.
(11)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.
(12)Restructuring and severance, net, included in Other expense, net, primarily represents severance and related costs associated with significant organizational or operating model changes implemented by the Company. Amounts are presented net of income (loss) attributable to noncontrolling interests of $— and $(1), respectively.
(13)The tax effect of adjustments, included in Income and mining tax benefit (expense), represents the tax effect of adjustments in footnotes (3) through (12), as described above, and are calculated using the applicable regional tax rate.
(14)Valuation allowance and other tax adjustments, net, included in Income and mining tax benefit (expense), is recorded for items such as foreign tax credits, alternative minimum tax credits, capital losses, disallowed foreign losses, and the effects of changes in foreign currency exchange rates on deferred tax assets and deferred tax liabilities. The adjustment for the three and nine months ended September 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 $7 and $(113), respectively, the effects of changes in foreign exchange rates on deferred tax assets and liabilities of $14 and $(173), respectively, changes to the reserve for uncertain tax positions of $(10) and $(19), respectively, and other tax adjustments of $3 and $35, respectively. Total amount is presented net of income (loss) attributable to noncontrolling interests of $(4) and $(26), respectively.
(15)Adjusted net income (loss) has not been adjusted for $25 and $158 of cash and $9 and $83 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 nine months ended September 30, 2020, respectively. Amounts are presented net of income (loss) attributable to noncontrolling interests of $1, $13, $— and $3, respectively.
(16)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
September 30, 2019
|
|
Nine Months Ended
September 30, 2019
|
|
|
|
|
per share data (1)
|
|
|
|
per share data (1)
|
|
|
|
|
basic
|
|
diluted
|
|
|
|
basic
|
|
diluted
|
|
Net income (loss) attributable to Newmont stockholders
|
$
|
2,178
|
|
|
$
|
2.66
|
|
|
$
|
2.65
|
|
|
$
|
2,240
|
|
|
$
|
3.16
|
|
|
$
|
3.16
|
|
|
Net loss (income) attributable to Newmont stockholders from discontinued operations (2)
|
48
|
|
|
0.06
|
|
|
0.06
|
|
|
100
|
|
|
0.14
|
|
|
0.14
|
|
|
Net income (loss) attributable to Newmont stockholders from continuing operations
|
2,226
|
|
|
2.72
|
|
|
2.71
|
|
|
2,340
|
|
|
3.30
|
|
|
3.30
|
|
|
Gain on formation of Nevada Gold Mines (3)
|
(2,366)
|
|
|
(2.88)
|
|
|
(2.88)
|
|
|
(2,366)
|
|
|
(3.34)
|
|
|
(3.34)
|
|
|
Goldcorp transaction and integration costs (4)
|
26
|
|
|
0.03
|
|
|
0.03
|
|
|
185
|
|
|
0.26
|
|
|
0.26
|
|
|
Change in fair value of investments (5)
|
(19)
|
|
|
(0.02)
|
|
|
(0.02)
|
|
|
(75)
|
|
|
(0.10)
|
|
|
(0.10)
|
|
|
Reclamation and remediation charges (6)
|
17
|
|
|
0.02
|
|
|
0.02
|
|
|
49
|
|
|
0.07
|
|
|
0.07
|
|
|
Loss (gain) on asset and investment sales, net (7)
|
1
|
|
|
—
|
|
|
—
|
|
|
(30)
|
|
|
(0.04)
|
|
|
(0.04)
|
|
|
Nevada JV transaction and integration costs (8)
|
3
|
|
|
—
|
|
|
—
|
|
|
26
|
|
|
0.05
|
|
|
0.05
|
|
|
Pension curtailment (9)
|
8
|
|
|
0.01
|
|
|
0.01
|
|
|
8
|
|
|
0.02
|
|
|
0.02
|
|
|
Restructuring and severance (10)
|
—
|
|
|
—
|
|
|
—
|
|
|
5
|
|
|
0.01
|
|
|
0.01
|
|
|
Impairment of long-lived and other assets, net (11)
|
2
|
|
|
—
|
|
|
—
|
|
|
3
|
|
|
—
|
|
|
—
|
|
|
Settlement costs (12)
|
2
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
Impairment of investments (13)
|
1
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
Tax effect of adjustments (14)
|
439
|
|
|
0.54
|
|
|
0.54
|
|
|
426
|
|
|
0.60
|
|
|
0.60
|
|
|
Valuation allowance and other tax adjustments, net (15)
|
(48)
|
|
|
(0.06)
|
|
|
(0.05)
|
|
|
(15)
|
|
|
(0.04)
|
|
|
(0.04)
|
|
|
Adjusted net income (loss)
|
$
|
292
|
|
|
$
|
0.36
|
|
|
$
|
0.36
|
|
|
$
|
560
|
|
|
$
|
0.79
|
|
|
$
|
0.79
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares (millions): (16)
|
|
|
820
|
|
|
822
|
|
|
|
|
708
|
|
|
709
|
|
____________________________
(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 on formation of Nevada Gold Mines, included in Gain on formation of Nevada Gold Mines, represents the difference between the fair value of our 38.5% interest in NGM and the carrying value of the Nevada mining operations contributed.
(4)Goldcorp transaction and integration costs, included in Other expense, net, primarily represents costs incurred related to the Newmont Goldcorp transaction during 2019.
(5)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.
(6)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.
(7)Loss (gain) on asset and investment sales, net, 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 $— and $2, respectively.
(8)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.
(9)Pension curtailment, included in Other income, net, primarily represents curtailment charges recognized due to a significant amount of employees being terminated as a result of establishing NGM.
(10)Restructuring and severance, included in Other expense, net, primarily represents certain costs associated with severance and legal costs.
(11)Impairment of long-lived and other assets, net, included in Other expense, net, represents non-cash write-downs of long-lived assets. Amounts are presented net of income (loss) attributable to noncontrolling interests of $(1) and $(1), respectively.
(12)Settlement costs, included in Other expense, net, primarily represents certain costs associated with legal and other settlements.
(13)Impairment of investments, included in Other income, net, represents other-than-temporary impairments of other investments.
(14)The tax effect of adjustments, included in Income and mining tax benefit (expense), represents the tax effect of adjustments in footnotes (3) through (13), as described above, and are calculated using the applicable regional tax rate.
(15)Valuation allowance and other tax adjustments, 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 in the three and nine months ended September 30, 2019 is due to increases or (decreases) to net operating losses, tax credit carryovers and other deferred tax assets subject to valuation allowance of $87 and $111 respectively, the effects of changes in foreign exchange rates on deferred tax assets and liabilities of $(147) and $(150), respectively, additions to the reserve for uncertain tax positions of $7 and $21, respectively and other tax adjustments of $8 and $5, respectively. Amounts are presented net of income (loss) attributable to noncontrolling interests of $(3) and $(2), respectively.
(16)Adjusted net income (loss) per diluted share is calculated using diluted common shares, which are calculated in accordance with U.S. GAAP.
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.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended September 30,
|
|
|
2020
|
|
2019
|
|
Net cash provided by (used in) operating activities
|
$
|
3,196
|
|
|
$
|
1,661
|
|
|
Less: Net cash used in (provided by) operating activities of discontinued operations
|
8
|
|
|
7
|
|
|
Net cash provided by (used in) operating activities of continuing operations
|
3,204
|
|
|
1,668
|
|
|
Less: Additions to property, plant and mine development
|
(904)
|
|
|
(1,033)
|
|
|
Free Cash Flow
|
$
|
2,300
|
|
|
$
|
635
|
|
|
|
|
|
|
|
Net cash provided by (used in) investing activities (1)
|
$
|
502
|
|
|
$
|
(817)
|
|
|
Net cash provided by (used in) financing activities
|
$
|
(1,119)
|
|
|
$
|
(1,506)
|
|
____________________________
(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
September 30,
|
|
Nine Months Ended
September 30,
|
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
Costs applicable to sales (1)(2)
|
$
|
1,130
|
|
|
$
|
1,232
|
|
|
$
|
3,210
|
|
|
$
|
3,412
|
|
|
Gold sold (thousand ounces)
|
1,495
|
|
|
1,682
|
|
|
4,210
|
|
|
4,656
|
|
|
Costs applicable to sales per ounce (3)
|
$
|
756
|
|
|
$
|
733
|
|
|
$
|
762
|
|
|
$
|
733
|
|
____________________________
(1)Includes by-product credits of $34 and $78 during the three and nine months ended September 30, 2020, respectively, and $31 and $60 during the three and nine months ended September 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
September 30,
|
|
Nine Months Ended
September 30,
|
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
Costs applicable to sales (1)(2)
|
$
|
139
|
|
|
$
|
160
|
|
|
$
|
449
|
|
|
$
|
324
|
|
|
Gold equivalent ounces - other metals (thousand ounces) (3)
|
248
|
|
|
213
|
|
|
780
|
|
|
357
|
|
|
Costs applicable to sales per ounce (4)
|
$
|
556
|
|
|
$
|
747
|
|
|
$
|
575
|
|
|
$
|
908
|
|
____________________________
(1)Includes by-product credits of $1 and $2 during the three and nine months ended September 30, 2020, respectively, and $— and $2 during the three and nine months ended September 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.
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
September 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
|
$
|
61
|
|
|
$
|
1
|
|
|
$
|
3
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
10
|
|
|
$
|
75
|
|
|
71
|
|
|
$
|
1,081
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Musselwhite
|
46
|
|
|
1
|
|
|
2
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
7
|
|
|
58
|
|
|
47
|
|
|
1,260
|
|
|
Porcupine
|
61
|
|
|
—
|
|
|
3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
10
|
|
|
74
|
|
|
81
|
|
|
911
|
|
|
Éléonore
|
53
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
10
|
|
|
64
|
|
|
57
|
|
|
1,118
|
|
|
Peñasquito
|
74
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
18
|
|
|
13
|
|
|
107
|
|
|
130
|
|
|
835
|
|
|
Other North America
|
—
|
|
|
—
|
|
|
4
|
|
|
1
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
7
|
|
|
—
|
|
|
—
|
|
|
North America
|
295
|
|
|
5
|
|
|
12
|
|
|
1
|
|
|
4
|
|
|
18
|
|
|
50
|
|
|
385
|
|
|
386
|
|
|
1,003
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Yanacocha
|
81
|
|
|
13
|
|
|
2
|
|
|
1
|
|
|
4
|
|
|
—
|
|
|
6
|
|
|
107
|
|
|
80
|
|
|
1,325
|
|
|
Merian
|
86
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
10
|
|
|
97
|
|
|
106
|
|
|
917
|
|
|
Cerro Negro
|
43
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
16
|
|
|
—
|
|
|
8
|
|
|
68
|
|
|
51
|
|
|
1,346
|
|
|
Other South America
|
—
|
|
|
—
|
|
|
1
|
|
|
2
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
4
|
|
|
—
|
|
|
—
|
|
|
South America
|
210
|
|
|
15
|
|
|
3
|
|
|
3
|
|
|
21
|
|
|
—
|
|
|
24
|
|
|
276
|
|
|
237
|
|
|
1,162
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Boddington
|
148
|
|
|
3
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
3
|
|
|
17
|
|
|
172
|
|
|
175
|
|
|
985
|
|
|
Tanami
|
62
|
|
|
—
|
|
|
3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
29
|
|
|
94
|
|
|
130
|
|
|
723
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Australia
|
—
|
|
|
—
|
|
|
—
|
|
|
3
|
|
|
1
|
|
|
—
|
|
|
1
|
|
|
5
|
|
|
—
|
|
|
—
|
|
|
Australia
|
210
|
|
|
3
|
|
|
4
|
|
|
3
|
|
|
1
|
|
|
3
|
|
|
47
|
|
|
271
|
|
|
305
|
|
|
889
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ahafo
|
99
|
|
|
3
|
|
|
1
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
20
|
|
|
124
|
|
|
136
|
|
|
912
|
|
|
Akyem
|
58
|
|
|
5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
7
|
|
|
70
|
|
|
91
|
|
|
775
|
|
|
Other Africa
|
—
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
Africa
|
157
|
|
|
8
|
|
|
1
|
|
|
3
|
|
|
—
|
|
|
—
|
|
|
27
|
|
|
196
|
|
|
227
|
|
|
865
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nevada Gold Mines
|
258
|
|
|
4
|
|
|
6
|
|
|
3
|
|
|
—
|
|
|
2
|
|
|
34
|
|
|
307
|
|
|
340
|
|
|
904
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nevada
|
258
|
|
|
4
|
|
|
6
|
|
|
3
|
|
|
—
|
|
|
2
|
|
|
34
|
|
|
307
|
|
|
340
|
|
|
904
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate and Other
|
—
|
|
|
—
|
|
|
24
|
|
|
55
|
|
|
—
|
|
|
—
|
|
|
10
|
|
|
89
|
|
|
—
|
|
|
—
|
|
|
Total Gold
|
$
|
1,130
|
|
|
$
|
35
|
|
|
$
|
50
|
|
|
$
|
68
|
|
|
$
|
26
|
|
|
$
|
23
|
|
|
$
|
192
|
|
|
$
|
1,524
|
|
|
1,495
|
|
|
$
|
1,020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gold equivalent ounces - other metals (11)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Peñasquito
|
$
|
111
|
|
|
$
|
2
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1
|
|
|
$
|
31
|
|
|
$
|
14
|
|
|
$
|
159
|
|
|
215
|
|
|
$
|
735
|
|
|
Boddington
|
28
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
3
|
|
|
32
|
|
|
33
|
|
|
998
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Gold Equivalent Ounces
|
$
|
139
|
|
|
$
|
2
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1
|
|
|
$
|
32
|
|
|
$
|
17
|
|
|
$
|
191
|
|
|
248
|
|
|
$
|
770
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
|
$
|
1,269
|
|
|
$
|
37
|
|
|
$
|
50
|
|
|
$
|
68
|
|
|
$
|
27
|
|
|
$
|
55
|
|
|
$
|
209
|
|
|
$
|
1,715
|
|
|
|
|
|
____________________________
(1)Excludes Depreciation and amortization and Reclamation and remediation.
(2)Includes by-product credits of $35 and excludes co-product revenues of $310.
(3)Includes stockpile and leach pad inventory adjustments of $6 at NGM.
(4)Reclamation costs include operating accretion and amortization of asset retirement costs of $23 and $14, respectively, and exclude accretion and reclamation and remediation adjustments at former operating properties that have entered the closure phase and have no substantive future economic value of $12 and $3, respectively.
(5)Advanced projects, research and development and Exploration excludes development expenditures of $1 at CC&V, $1 at Éléonore, $1 at Peñasquito, $1 at Other North America, $3 at Merian, $6 at Other South America, $1 at Tanami, $5 at Other Australia, $4 at Ahafo, $2 at Akyem, $1 at Other Africa, $6 at NGM and $5 at Corporate and Other, totaling $37 related to developing new operations or major projects at existing operations where these projects will materially benefit the operation.
(6)Care and maintenance includes $5 at Musselwhite, $2 at Yanacocha, $18 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 or operating at reduced levels in response to the COVID-19 pandemic, during the period ended September 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 $32, settlement costs of $26, impairment of long-lived and other assets of $24 and restructuring and severance of $9.
(8)Includes sustaining capital expenditures of $55 for North America, $24 for South America, $47 for Australia, $26 for Africa, $34 for Nevada, and $10 for Corporate and Other, totaling $196 and excludes development capital expenditures, capitalized interest and the change in accrued capital totaling $100. 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 $13.
(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.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
September 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
|
$
|
65
|
|
|
$
|
—
|
|
|
$
|
2
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
13
|
|
|
$
|
80
|
|
|
73
|
|
|
$
|
1,087
|
|
|
Red Lake
|
45
|
|
|
2
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8
|
|
|
57
|
|
|
31
|
|
|
1,872
|
|
|
Musselwhite
|
8
|
|
|
1
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
10
|
|
|
21
|
|
|
—
|
|
|
—
|
|
|
Porcupine
|
62
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8
|
|
|
71
|
|
|
84
|
|
|
843
|
|
|
Éléonore
|
69
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
9
|
|
|
78
|
|
|
83
|
|
|
932
|
|
|
Peñasquito
|
39
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
18
|
|
|
59
|
|
|
35
|
|
|
1,681
|
|
|
Other North America
|
—
|
|
|
—
|
|
|
—
|
|
|
23
|
|
|
1
|
|
|
—
|
|
|
1
|
|
|
25
|
|
|
—
|
|
|
—
|
|
|
North America
|
288
|
|
|
5
|
|
|
6
|
|
|
23
|
|
|
1
|
|
|
1
|
|
|
67
|
|
|
391
|
|
|
306
|
|
|
1,276
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Yanacocha
|
107
|
|
|
13
|
|
|
4
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
6
|
|
|
131
|
|
|
149
|
|
|
881
|
|
|
Merian
|
78
|
|
|
1
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
16
|
|
|
97
|
|
|
127
|
|
|
761
|
|
|
Cerro Negro
|
78
|
|
|
—
|
|
|
11
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
12
|
|
|
101
|
|
|
118
|
|
|
860
|
|
|
Other South America
|
—
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
South America
|
263
|
|
|
14
|
|
|
17
|
|
|
3
|
|
|
—
|
|
|
—
|
|
|
34
|
|
|
331
|
|
|
394
|
|
|
841
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Boddington
|
146
|
|
|
3
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
3
|
|
|
19
|
|
|
172
|
|
|
178
|
|
|
958
|
|
|
Tanami
|
64
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
18
|
|
|
84
|
|
|
112
|
|
|
758
|
|
|
Kalgoorlie
|
60
|
|
|
2
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5
|
|
|
69
|
|
|
61
|
|
|
1,141
|
|
|
Other Australia
|
—
|
|
|
—
|
|
|
3
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
7
|
|
|
—
|
|
|
—
|
|
|
Australia
|
270
|
|
|
5
|
|
|
8
|
|
|
2
|
|
|
—
|
|
|
3
|
|
|
44
|
|
|
332
|
|
|
351
|
|
|
944
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ahafo
|
98
|
|
|
1
|
|
|
5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
23
|
|
|
127
|
|
|
157
|
|
|
811
|
|
|
Akyem
|
51
|
|
|
8
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5
|
|
|
64
|
|
|
107
|
|
|
612
|
|
|
Other Africa
|
—
|
|
|
—
|
|
|
—
|
|
|
3
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
4
|
|
|
—
|
|
|
—
|
|
|
Africa
|
149
|
|
|
9
|
|
|
5
|
|
|
3
|
|
|
1
|
|
|
—
|
|
|
28
|
|
|
195
|
|
|
264
|
|
|
741
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nevada Gold Mines
|
235
|
|
|
10
|
|
|
5
|
|
|
3
|
|
|
2
|
|
|
2
|
|
|
50
|
|
|
307
|
|
|
334
|
|
|
920
|
|
|
Carlin
|
8
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8
|
|
|
11
|
|
|
854
|
|
|
Phoenix
|
15
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
17
|
|
|
13
|
|
|
1,187
|
|
|
Twin Creeks
|
3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3
|
|
|
8
|
|
|
340
|
|
|
Long Canyon
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
1
|
|
|
692
|
|
|
Other Nevada
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Nevada
|
262
|
|
|
10
|
|
|
5
|
|
|
3
|
|
|
2
|
|
|
4
|
|
|
50
|
|
|
336
|
|
|
367
|
|
|
915
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate and Other
|
—
|
|
|
—
|
|
|
18
|
|
|
50
|
|
|
—
|
|
|
—
|
|
|
8
|
|
|
76
|
|
|
—
|
|
|
—
|
|
|
Total Gold
|
$
|
1,232
|
|
|
$
|
43
|
|
|
$
|
59
|
|
|
$
|
84
|
|
|
$
|
4
|
|
|
$
|
8
|
|
|
$
|
231
|
|
|
$
|
1,661
|
|
|
1,682
|
|
|
$
|
987
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gold equivalent ounces - other metals (10)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Peñasquito
|
$
|
132
|
|
|
$
|
3
|
|
|
$
|
1
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
32
|
|
|
$
|
45
|
|
|
$
|
213
|
|
|
173
|
|
|
$
|
1,226
|
|
|
Boddington
|
28
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
3
|
|
|
33
|
|
|
37
|
|
|
907
|
|
|
Phoenix
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3
|
|
|
—
|
|
|
Total Gold Equivalent Ounces
|
$
|
160
|
|
|
$
|
3
|
|
|
$
|
1
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
34
|
|
|
$
|
48
|
|
|
$
|
246
|
|
|
213
|
|
|
$
|
1,155
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
|
$
|
1,392
|
|
|
$
|
46
|
|
|
$
|
60
|
|
|
$
|
84
|
|
|
$
|
4
|
|
|
$
|
42
|
|
|
$
|
279
|
|
|
$
|
1,907
|
|
|
|
|
|
____________________________
(1)Excludes Depreciation and amortization and Reclamation and remediation.
(2)Includes by-product credits of $31 and excludes co-product revenues of $230.
(3)Includes stockpile and leach pad inventory adjustments of $1 at NGM.
(4)Reclamation costs include operating accretion and amortization of asset retirement costs of $25 and $21, respectively, and exclude accretion and reclamation and remediation adjustments at former operating properties that have entered the closure phase and have no substantive future economic value of $14 and $23, respectively.
(5)Advanced projects, research and development and Exploration excludes development expenditures of $1 at Musselwhite, $4 at Porcupine, $2 at Éléonore, $1 at Peñasquito, $2 at Other North America, $2 at Yanacocha, $1 at Merian, $4 at Cerro Negro, $9 at Other South America, $6 at Other Australia, $3 at Ahafo, $4 at Akyem, $1 at Other Africa, $8 at NGM and $23 at Corporate and Other, totaling $71 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 $26, Nevada JV transaction and integration costs of $3, impairment of long-lived and other assets of $3 and settlement costs of $2.
(7)Includes sustaining capital expenditures of $98 for North America, $34 for South America, $44 for Australia, $27 for Africa, $50 for Nevada and $8 for Corporate and Other, totaling $261 and excludes development capital expenditures, capitalized interest and the increase in accrued capital totaling $167. 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 $18 and excludes finance lease payments for development projects of $3.
(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.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended
September 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
|
$
|
180
|
|
|
$
|
4
|
|
|
$
|
5
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
27
|
|
|
$
|
216
|
|
|
200
|
|
|
$
|
1,085
|
|
|
Red Lake
|
45
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4
|
|
|
50
|
|
|
42
|
|
|
1,182
|
|
|
Musselwhite
|
73
|
|
|
2
|
|
|
5
|
|
|
—
|
|
|
24
|
|
|
—
|
|
|
16
|
|
|
120
|
|
|
62
|
|
|
1,945
|
|
|
Porcupine
|
174
|
|
|
2
|
|
|
7
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
25
|
|
|
208
|
|
|
241
|
|
|
862
|
|
|
Éléonore
|
127
|
|
|
2
|
|
|
3
|
|
|
—
|
|
|
26
|
|
|
—
|
|
|
27
|
|
|
185
|
|
|
137
|
|
|
1,345
|
|
|
Peñasquito
|
188
|
|
|
4
|
|
|
—
|
|
|
—
|
|
|
19
|
|
|
27
|
|
|
24
|
|
|
262
|
|
|
311
|
|
|
845
|
|
|
Other North America
|
—
|
|
|
—
|
|
|
4
|
|
|
9
|
|
|
3
|
|
|
—
|
|
|
1
|
|
|
17
|
|
|
—
|
|
|
—
|
|
|
North America
|
787
|
|
|
14
|
|
|
25
|
|
|
9
|
|
|
72
|
|
|
27
|
|
|
124
|
|
|
1,058
|
|
|
993
|
|
|
1,066
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Yanacocha
|
270
|
|
|
42
|
|
|
5
|
|
|
1
|
|
|
30
|
|
|
—
|
|
|
14
|
|
|
362
|
|
|
266
|
|
|
1,358
|
|
|
Merian
|
239
|
|
|
3
|
|
|
3
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
27
|
|
|
273
|
|
|
337
|
|
|
811
|
|
|
Cerro Negro
|
115
|
|
|
2
|
|
|
1
|
|
|
—
|
|
|
54
|
|
|
—
|
|
|
24
|
|
|
196
|
|
|
154
|
|
|
1,271
|
|
|
Other South America
|
—
|
|
|
—
|
|
|
1
|
|
|
7
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
10
|
|
|
—
|
|
|
—
|
|
|
South America
|
624
|
|
|
47
|
|
|
10
|
|
|
9
|
|
|
86
|
|
|
—
|
|
|
65
|
|
|
841
|
|
|
757
|
|
|
1,111
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Boddington
|
421
|
|
|
9
|
|
|
3
|
|
|
—
|
|
|
—
|
|
|
8
|
|
|
64
|
|
|
505
|
|
|
482
|
|
|
1,046
|
|
|
Tanami
|
189
|
|
|
1
|
|
|
7
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
68
|
|
|
265
|
|
|
375
|
|
|
707
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Australia
|
—
|
|
|
—
|
|
|
—
|
|
|
9
|
|
|
1
|
|
|
—
|
|
|
3
|
|
|
13
|
|
|
—
|
|
|
—
|
|
|
Australia
|
610
|
|
|
10
|
|
|
10
|
|
|
9
|
|
|
1
|
|
|
8
|
|
|
135
|
|
|
783
|
|
|
857
|
|
|
914
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ahafo
|
264
|
|
|
7
|
|
|
2
|
|
|
1
|
|
|
2
|
|
|
—
|
|
|
56
|
|
|
332
|
|
|
338
|
|
|
983
|
|
|
Akyem
|
164
|
|
|
17
|
|
|
1
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
18
|
|
|
201
|
|
|
268
|
|
|
750
|
|
|
Other Africa
|
—
|
|
|
—
|
|
|
—
|
|
|
5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5
|
|
|
—
|
|
|
—
|
|
|
Africa
|
428
|
|
|
24
|
|
|
3
|
|
|
6
|
|
|
3
|
|
|
—
|
|
|
74
|
|
|
538
|
|
|
606
|
|
|
889
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nevada Gold Mines
|
761
|
|
|
11
|
|
|
16
|
|
|
8
|
|
|
6
|
|
|
8
|
|
|
124
|
|
|
934
|
|
|
997
|
|
|
936
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nevada
|
761
|
|
|
11
|
|
|
16
|
|
|
8
|
|
|
6
|
|
|
8
|
|
|
124
|
|
|
934
|
|
|
997
|
|
|
936
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate and Other
|
—
|
|
|
—
|
|
|
53
|
|
|
164
|
|
|
3
|
|
|
—
|
|
|
31
|
|
|
251
|
|
|
—
|
|
|
—
|
|
|
Total Gold
|
$
|
3,210
|
|
|
$
|
106
|
|
|
$
|
117
|
|
|
$
|
205
|
|
|
$
|
171
|
|
|
$
|
43
|
|
|
$
|
553
|
|
|
$
|
4,405
|
|
|
4,210
|
|
|
$
|
1,046
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gold equivalent ounces - other metals (11)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Peñasquito
|
$
|
371
|
|
|
$
|
6
|
|
|
$
|
1
|
|
|
$
|
—
|
|
|
$
|
19
|
|
|
$
|
114
|
|
|
$
|
67
|
|
|
$
|
578
|
|
|
688
|
|
|
$
|
840
|
|
|
Boddington
|
78
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4
|
|
|
12
|
|
|
95
|
|
|
92
|
|
|
1,032
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Gold Equivalent Ounces
|
$
|
449
|
|
|
$
|
7
|
|
|
$
|
1
|
|
|
$
|
—
|
|
|
$
|
19
|
|
|
$
|
118
|
|
|
$
|
79
|
|
|
$
|
673
|
|
|
780
|
|
|
$
|
862
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
|
$
|
3,659
|
|
|
$
|
113
|
|
|
$
|
118
|
|
|
$
|
205
|
|
|
$
|
190
|
|
|
$
|
161
|
|
|
$
|
632
|
|
|
$
|
5,078
|
|
|
|
|
|
____________________________
(1)Excludes Depreciation and amortization and Reclamation and remediation.
(2)Includes by-product credits of $80 and excludes co-product revenues of $769.
(3)Includes stockpile and leach pad inventory adjustments of $18 at Yanacocha and $23 at NGM.
(4)Reclamation costs include operating accretion and amortization of asset retirement costs of $69 and $44, respectively, and exclude accretion and reclamation and remediation adjustments at former operating properties that have entered the closure phase and have no substantive future economic value of $38 and $9, respectively.
(5)Advanced projects, research and development and Exploration excludes development expenditures of $4 at CC&V, $1 at Porcupine, $1 at Éléonore, $2 at Peñasquito,$1 at Other North America, $2 at Yanacocha, $6 at Merian, $19 at Other South America, $4 at Tanami, $11 at Other Australia, $12 at Ahafo, $4 at Akyem, $3 at Other Africa, $14 at NGM and $8 at Corporate and Other, totaling $92 related to developing new operations or major projects at existing operations where these projects will materially benefit the operation.
(6)Care and maintenance includes $28 at Musselwhite, $26 at Éléonore, $38 at Peñasquito, $27 at Yanacocha, $50 at Cerro Negro and $2 at Other South America of cash care and maintenance costs associated with the sites temporarily being placed into care and maintenance or operating at reduced levels in response to the COVID-19 pandemic, during the period ended September 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 $67, settlement costs of $34, impairment of long-lived and other assets of $29, Goldcorp transaction and integration costs of $23 and restructuring and severance costs of $12.
(8)Includes sustaining capital expenditures of $156 for North America, $65 for South America, $139 for Australia, $73 for Africa, $124 for Nevada, and $31 for Corporate and Other, totaling $588 and excludes development capital expenditures, capitalized interest and the change in accrued capital totaling $316. 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 $44.
(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.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended
September 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
|
$
|
208
|
|
|
$
|
3
|
|
|
$
|
6
|
|
|
$
|
1
|
|
|
$
|
2
|
|
|
$
|
—
|
|
|
$
|
28
|
|
|
$
|
248
|
|
|
230
|
|
|
$
|
1,076
|
|
|
Red Lake
|
88
|
|
|
2
|
|
|
5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
22
|
|
|
117
|
|
|
68
|
|
|
1,734
|
|
|
Musselwhite
|
20
|
|
|
1
|
|
|
5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
14
|
|
|
40
|
|
|
6
|
|
|
7,131
|
|
|
Porcupine
|
125
|
|
|
2
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
18
|
|
|
147
|
|
|
143
|
|
|
1,027
|
|
|
Éléonore
|
144
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
21
|
|
|
168
|
|
|
167
|
|
|
1,002
|
|
|
Peñasquito
|
66
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
25
|
|
|
93
|
|
|
54
|
|
|
1,714
|
|
|
Other North America
|
—
|
|
|
—
|
|
|
1
|
|
|
43
|
|
|
1
|
|
|
—
|
|
|
4
|
|
|
49
|
|
|
—
|
|
|
—
|
|
|
North America
|
651
|
|
|
9
|
|
|
21
|
|
|
44
|
|
|
3
|
|
|
2
|
|
|
132
|
|
|
862
|
|
|
668
|
|
|
1,290
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Yanacocha
|
300
|
|
|
43
|
|
|
7
|
|
|
1
|
|
|
7
|
|
|
—
|
|
|
20
|
|
|
378
|
|
|
422
|
|
|
895
|
|
|
Merian
|
220
|
|
|
3
|
|
|
4
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
39
|
|
|
267
|
|
|
397
|
|
|
672
|
|
|
Cerro Negro
|
141
|
|
|
1
|
|
|
13
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
25
|
|
|
181
|
|
|
218
|
|
|
833
|
|
|
Other South America
|
—
|
|
|
—
|
|
|
—
|
|
|
7
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
7
|
|
|
—
|
|
|
—
|
|
|
South America
|
661
|
|
|
47
|
|
|
24
|
|
|
9
|
|
|
8
|
|
|
—
|
|
|
84
|
|
|
833
|
|
|
1,037
|
|
|
803
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Boddington
|
431
|
|
|
9
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
10
|
|
|
45
|
|
|
496
|
|
|
522
|
|
|
949
|
|
|
Tanami
|
198
|
|
|
2
|
|
|
5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
56
|
|
|
261
|
|
|
361
|
|
|
725
|
|
|
Kalgoorlie
|
160
|
|
|
3
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
20
|
|
|
185
|
|
|
170
|
|
|
1,090
|
|
|
Other Australia
|
—
|
|
|
—
|
|
|
4
|
|
|
7
|
|
|
1
|
|
|
—
|
|
|
5
|
|
|
17
|
|
|
—
|
|
|
—
|
|
|
Australia
|
789
|
|
|
14
|
|
|
12
|
|
|
7
|
|
|
1
|
|
|
10
|
|
|
126
|
|
|
959
|
|
|
1,053
|
|
|
911
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ahafo
|
281
|
|
|
3
|
|
|
14
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
71
|
|
|
370
|
|
|
451
|
|
|
820
|
|
|
Akyem
|
172
|
|
|
25
|
|
|
3
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
20
|
|
|
221
|
|
|
321
|
|
|
691
|
|
|
Other Africa
|
—
|
|
|
—
|
|
|
—
|
|
|
7
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
8
|
|
|
—
|
|
|
—
|
|
|
Africa
|
453
|
|
|
28
|
|
|
17
|
|
|
7
|
|
|
3
|
|
|
—
|
|
|
91
|
|
|
599
|
|
|
772
|
|
|
776
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nevada Gold Mines
|
235
|
|
|
10
|
|
|
5
|
|
|
3
|
|
|
2
|
|
|
2
|
|
|
50
|
|
|
307
|
|
|
334
|
|
|
920
|
|
|
Carlin
|
358
|
|
|
3
|
|
|
9
|
|
|
3
|
|
|
1
|
|
|
—
|
|
|
64
|
|
|
438
|
|
|
408
|
|
|
1,076
|
|
|
Phoenix
|
116
|
|
|
3
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
7
|
|
|
10
|
|
|
137
|
|
|
118
|
|
|
1,149
|
|
|
Twin Creeks
|
113
|
|
|
1
|
|
|
3
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
23
|
|
|
141
|
|
|
170
|
|
|
830
|
|
|
Long Canyon
|
36
|
|
|
1
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
7
|
|
|
45
|
|
|
96
|
|
|
466
|
|
|
Other Nevada
|
—
|
|
|
—
|
|
|
5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4
|
|
|
9
|
|
|
—
|
|
|
—
|
|
|
Nevada
|
858
|
|
|
18
|
|
|
22
|
|
|
9
|
|
|
3
|
|
|
9
|
|
|
158
|
|
|
1,077
|
|
|
1,126
|
|
|
956
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate and Other
|
—
|
|
|
—
|
|
|
46
|
|
|
148
|
|
|
3
|
|
|
—
|
|
|
9
|
|
|
206
|
|
|
—
|
|
|
—
|
|
|
Total Gold
|
$
|
3,412
|
|
|
$
|
116
|
|
|
$
|
142
|
|
|
$
|
224
|
|
|
$
|
21
|
|
|
$
|
21
|
|
|
$
|
600
|
|
|
$
|
4,536
|
|
|
4,656
|
|
|
$
|
974
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gold equivalent ounces - other metals (10)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Peñasquito
|
$
|
209
|
|
|
$
|
3
|
|
|
$
|
2
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
34
|
|
|
$
|
65
|
|
|
$
|
313
|
|
|
213
|
|
|
$
|
1,471
|
|
|
Boddington
|
87
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6
|
|
|
8
|
|
|
103
|
|
|
106
|
|
|
966
|
|
|
Phoenix
|
28
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
3
|
|
|
34
|
|
|
38
|
|
|
894
|
|
|
Total Gold Equivalent Ounces
|
$
|
324
|
|
|
$
|
7
|
|
|
$
|
2
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
41
|
|
|
$
|
76
|
|
|
$
|
450
|
|
|
357
|
|
|
$
|
1,259
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
|
$
|
3,736
|
|
|
$
|
123
|
|
|
$
|
144
|
|
|
$
|
224
|
|
|
$
|
21
|
|
|
$
|
62
|
|
|
$
|
676
|
|
|
$
|
4,986
|
|
|
|
|
|
____________________________
(1)Excludes Depreciation and amortization and Reclamation and remediation.
(2)Includes by-product credits of $62 and excludes co-product revenues of $397.
(3)Includes stockpile and leach pad inventory adjustments of $10 at CC&V, $10 at Yanacocha, $19 at Boddington, $20 at Akyem, $1 at NGM, $33 at Carlin and $2 at Twin Creeks.
(4)Reclamation costs include operating accretion and amortization of asset retirement costs of $63 and $60, respectively, and exclude accretion and reclamation and remediation adjustments at former operating properties that have entered the closure phase and have no substantive future economic value of $39 and $63, respectively.
(5)Advanced projects, research and development and Exploration excludes development expenditures of $3 at CC&V, $1 at Musselwhite, $4 at Porcupine, $2 at Éléonore, $1 at Peñasquito, $2 at Other North America, $9 at Yanacocha, $2 at Merian, $6 at Cerro Negro, $29 at Other South America, $3 at Tanami, $2 at Kalgoorlie, $12 at Other Australia, $10 at Ahafo, $9 at Akyem, $4 at Other Africa, $8 at NGM, $6 at Carlin, $1 at Phoenix, $2 at Twin Creeks, $12 at Long Canyon, $2 at Other Nevada and $26 at Corporate and Other, totaling $156 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 $185, Nevada JV transaction and integration costs of $26, restructuring and severance costs of $5, impairment of long-lived and other assets of $4 and settlement costs of $2.
(7)Includes sustaining capital expenditures of $172 for North America, $84 for South America, $125 for Australia, $88 for Africa, $160 for Nevada and $9 for Corporate and Other, totaling $638 and excludes development capital expenditures, capitalized interest and the increase in accrued capital totaling $395. The following are major development projects: Musselwhite Materials Handling, Borden, Quecher Main, Yanacocha Sulfides, Tanami Expansion 2, Ahafo North, Subika Underground, Ahafo Mill Expansion and Turquoise Ridge joint venture 3rd shaft.
(8)Includes finance lease payments for sustaining projects of $38 and excludes finance lease payments for development projects of $22.
(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.
Accounting Developments
For a discussion of Recently Adopted and Recently Issued Accounting Pronouncements, see Note 2 to the Condensed Consolidated Financial Statements.
COVID-19 Assessment
In light of the COVID-19 pandemic described above we have reviewed and evaluated our long-lived assets for events or changes in circumstances that indicate that the related carrying amounts may not be recoverable. As of September 30, 2020, we determined that no impairment indicators existed at the balance sheet date, as the pandemic-related restrictions are viewed as temporary and are not expected to have a material impact on the Company’s ability to recover the carrying amounts of its long-lived assets, including those assets temporarily placed on care and maintenance during 2020.
Additionally, we reassessed whether the COVID-19 pandemic required an interim goodwill impairment analysis of our reporting units and determined that no impairment indicators were present as of September 30, 2020. While five of our mines had been placed in care and maintenance during the first and second quarters of 2020, as of September 30, 2020, Musselwhite, Éléonore and Peñasquito were fully operational while Yanacocha has ramped up to near normal operations. Cerro Negro continues to operate at reduced levels while managing ongoing COVID-19 related travel restrictions and collaborating with local authorities and trade unions. No impairment indicators were present as there has not been deterioration in gold prices and COVID-19 related impacts were not expected to have a material impact on the fair value of the Company's reporting units.
We have been closely monitoring the COVID-19 pandemic and its impacts and potential impacts on our business. However, because of the changing developments with respect to the spread of COVID-19 and the unprecedented nature of the pandemic, we are unable to predict the extent and duration of any potential adverse financial impact of COVID-19 on our business, financial condition and results of operations. Future developments could impact our assessment and result in material impairments to our long-lived assets or goodwill.
Refer to our Management’s Discussion and Analysis of Accounting Developments and Critical Accounting Policies included in Part II of our Annual Report on Form 10-K for the year ended December 31, 2019 filed with the Securities and Exchange Commission (“SEC”) on February 20, 2020 for additional information on our critical accounting policies and estimates.
Safe Harbor Statement
Certain statements contained in this report (including information incorporated by reference herein) are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and are intended to be covered by the safe harbor provided for under these sections. Words such as “expect(s)”, “feel(s)”, “believe(s)”, “will”, “may”, “anticipate(s)”, “estimate(s)”, “should”, “intend(s)” and similar expressions are intended to identify forward-looking statements. Our forward-looking statements may include, without limitation:
•estimates regarding future earnings and the sensitivity of earnings to gold, copper and other metal prices;
•estimates of future mineral production and sales;
•estimates of future production costs, other expenses and taxes for specific operations and on a consolidated basis;
•estimates of future cash flows and the sensitivity of cash flows to gold and other metal prices;
•estimates of future capital expenditures, construction, production or closure activities and other cash needs, for specific operations and on a consolidated basis, and expectations as to the funding or timing thereof;
•estimates as to the projected development of certain ore deposits, including the timing of such development, the costs of such development and other capital costs, financing plans for these deposits and expected production commencement dates;
•estimates of reserves and statements regarding future exploration results and reserve replacement and the sensitivity of reserves to metal price changes;
•statements regarding the availability of, and terms and costs related to, future borrowing or financing and expectations regarding future debt repayments or debt tender transactions;
•estimates regarding future exploration expenditures, results and reserves;
•statements regarding fluctuations in financial and currency markets;
•estimates regarding potential cost savings, productivity, operating performance and ownership and cost structures;
•expectations regarding future or recent acquisitions and joint ventures, including, without limitation, projected benefits, synergies, value creation, integration, timing and costs and related valuations and other matters;
•expectations regarding the start-up time, design, mine life, production and costs applicable to sales and exploration potential of our projects;
•statements regarding future hedge and derivative positions or modifications thereto;
•statements regarding political, economic or governmental conditions and environments;
•statements regarding the impacts of changes in the legal and regulatory environment in which we operate;
•estimates of future costs, accruals for reclamation costs and other liabilities for certain environmental matters;
•estimates of income taxes and expectations relating to tax contingencies or tax audits;
•estimates of pension and other post-retirement costs; and
•expectations regarding the impacts of COVID-19 and other health and safety conditions.
Where we express 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, our forward-looking 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 those forward-looking statements. Such risks and uncertainties include, but are not limited to:
•the price of gold, copper and other metal prices and commodities;
•the cost of operations;
•currency fluctuations;
•geological and metallurgical assumptions;
•operating performance of equipment, processes and facilities;
•the impact of COVID-19, including, without limitation, impacts on employees, operations, regulations resulting in potential business interruptions and travel restrictions, commodity prices, costs, supply chain and the U.S. and the global economy;
•labor relations;
•timing of receipt of necessary governmental permits or approvals;
•domestic and foreign laws or regulations, particularly relating to the environment, mining and processing;
•changes in tax laws;
•domestic and international economic and political conditions;
•our ability to obtain or maintain necessary financing; and
•other risks and hazards associated with mining operations.
More detailed information regarding these factors is included in the section titled Item 1, Business; Item 1A, Risk Factors in the Annual Report on Form 10-K for the year ended December 31, 2019, in the section titled Part II, Item 1A, Risk Factors in the Quarterly Report on Form 10-Q for the quarter ended March 31, 2020, and elsewhere throughout this report. Many of these factors are beyond our ability to control or predict. Given these uncertainties, readers are cautioned not to place undue reliance on our forward-looking statements.
All subsequent written and oral forward-looking statements attributable to Newmont or to persons acting on its behalf are expressly qualified in their entirety by these cautionary statements. We disclaim any intention or obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws.