Newmont Delivers Solid Second Quarter
Results; Clear Strategy to Deliver Value From Our
World-Class Portfolio of Long-Life, Responsibly Managed
Assets
Newmont Corporation (NYSE: NEM, TSX: NGT) (Newmont or the
Company) today announced second quarter 2021 results.
SECOND QUARTER 2021 HIGHLIGHTS
- Produced 1.4 million attributable ounces of gold and 303
thousand attributable gold equivalent ounces from co-products
- Reported gold CAS* of $755 per ounce and AISC* of $1,035 per
ounce
- Full-year results continue to be back-half weighted, in line
with guidance ranges**
- Generated $993 million of cash from continuing operations and
$578 million of Free Cash Flow (97 percent attributable to
Newmont)*
- Declared second quarter dividend of $0.55 per share, consistent
with the previous quarter***
- Completed $149 million of share repurchases from $1 billion
buyback program***
- Ended the quarter with $4.6 billion of consolidated cash and
$7.6 billion of liquidity with a net debt to adjusted EBITDA* ratio
of 0.2x
- Reduced $550 million of debt outstanding with available cash in
April 2021
- Completed acquisition of GT Gold in May 2021, increasing our
interest in the prospective Golden Triangle
- Approved full funding for Ahafo North in July 2021, meeting
Newmont’s internal hurdle rate at the base assumption of $1,200 per
ounce gold price; expecting to deliver an internal rate of return
of over 30 percent at current prices
- Published 2020 Annual Sustainability Report, a transparent
review of our Environmental, Social and Governance performance
- Launched first Climate Strategy Report, including pathways to
achieve our climate targets
"Throughout our history Newmont has taken an industry-leading
approach to environmental, social and governance practices. We
published our sustainability and climate-focused reports in the
second quarter, demonstrating our commitment to responsible mining
and doing our part in addressing climate change," said Tom Palmer,
President and Chief Executive Officer. "Capitalizing on the
strength of our assets and integrated operating model, Newmont
delivered a solid second quarter performance with $1.6 billion in
adjusted EBITDA and $578 million in free cash flow. Our performance
and disciplined approach to capital allocation allowed Newmont to
declare a second quarter dividend of $0.55 per share, whilst we
continue to reinvest in our business through our most profitable
projects. As we move into our next 100 years of mining, we remain
focused on delivering value to all of our stakeholders from our
world-class portfolio of long-life, responsibly managed assets
located in top-tier jurisdictions."
- Tom Palmer, President and Chief Executive Officer
________________________________________________
*
Non-GAAP metrics; see footnotes at the end
of this release.
**
See discussion of outlook and cautionary
statement at end of release regarding forward-looking
statements.
***
See cautionary statement and endnotes at
the end of this release, including with respect to future dividends
and share buybacks. Note that the buyback figure above includes $15
million settled after June 30, 2021.
SECOND QUARTER 2021 FINANCIAL AND PRODUCTION SUMMARY
Q2'21
Q1'21
Q2'20
Attributable gold production (million
ounces)
1.45
1.46
1.26
Gold costs applicable to sales (CAS) ($
per ounce)
$
755
$
752
$
748
Gold all-in sustaining costs (AISC) ($ per
ounce)
$
1,035
$
1,039
$
1,097
GAAP Net income (US $ millions)
$
640
$
538
$
412
Adjusted net income (US $ millions)
$
670
$
594
$
261
Adjusted EBITDA (US $ millions)
$
1,591
$
1,457
$
984
Cash flow from continuing operations (US $
millions)
$
993
$
841
$
668
Capital Expenditures (US $ millions)
$
415
$
399
$
280
Free cash flow (US $ millions)
$
578
$
442
$
388
Attributable gold production1 increased 15 percent to
1,449 thousand ounces from the prior year quarter primarily due to
higher production from sites that were placed into care and
maintenance or experienced reduced operations in response to Covid
during 2020, and higher ore grade milled and higher mill throughput
at Boddington. These increases were partially offset by lower mill
availability and lower tons and grades mined at Nevada Gold Mines,
the ramp down of the mill at Yanacocha during the first quarter of
2021 and a build-up of in-circuit inventory at Tanami as the mine
was placed under care and maintenance in late-June as a result of
Covid restrictions.
Gold CAS increased 16 percent to $1,091 million from the
prior year quarter primarily due to higher gold ounces sold.
Gold CAS per ounce2 remained flat compared to the prior year
quarter at $755 per ounce as higher maintenance costs and
unfavorable Australian dollar foreign currency exchange rate were
largely offset by higher ounces sold and higher by-product
credits.
Gold AISC3 improved 6 percent to $1,035 per ounce from
the prior year quarter primarily due to care and maintenance costs
in the prior year, partially offset by higher sustaining capital
spend.
Attributable gold equivalent ounce (GEO) production from
other metals increased 120 percent to 303 thousand ounces
primarily due to higher production at Peñasquito as the site was
placed into care and maintenance in the prior year and higher ore
grade milled, mill throughput and recoveries at Boddington.
CAS from other metals totaled $190 million for the
quarter. CAS per GEO2 increased 13 percent to $629 per ounce
from the prior year quarter primarily due to higher maintenance
costs at Peñasquito, unfavorable foreign currency impacts from the
strengthening of the Australian dollar, higher allocation of costs
to other metals and higher copper-price driven royalties, partially
offset by higher other metal sales. AISC per GEO3 improved 9
percent to $886 per ounce primarily due to lower treatment and
refining costs and higher care and maintenance costs in the prior
year, partially offset by higher CAS per GEO.
Net income from continuing operations attributable to
Newmont stockholders was $640 million or $0.80 per diluted share,
an increase of $228 million from the prior year quarter primarily
due to higher sales volumes and higher average realized prices in
the current year. These increases were partially offset by higher
income tax expense in the current year.
Adjusted net income4 was $670 million or $0.83 per
diluted share, compared to $261 million or $0.32 per diluted share
in the prior year quarter. Primary adjustments to second quarter
net income include changes in the fair value of investments,
reclamation and remediation charges, asset impairment and valuation
allowance and other tax adjustments.
Adjusted EBITDA5 improved 62 percent to $1,591 million
for the quarter, compared to $984 million for the prior year
quarter.
Revenue increased 30 percent from the prior year quarter
to $3,065 million primarily due to higher average realized metal
prices and higher sales volumes.
Average realized price6 for gold was $1,823, an increase
of $99 per ounce over the prior year quarter. Average realized gold
price includes $1,819 per ounce of gross price received, the
favorable impact of $9 per ounce mark-to-market on
provisionally-priced sales and reductions of $5 per ounce for
treatment and refining charges.
Capital expenditures7 increased 48 percent from the prior
year quarter to $415 million primarily due to higher sustaining
capital spend from sites that were placed into care and maintenance
in response to Covid during 2020 and higher development capital
spend. Development capital expenditures in 2021 primarily include
advancing Tanami Expansion 2, Yanacocha Sulfides, Ahafo North, the
Subika Mining Method Change, Cerro Negro expansion projects,
Quecher Main and projects associated with the Company’s ownership
interest in Nevada Gold Mines.
Consolidated operating cash flow from continuing
operations increased 49 percent from the prior year quarter to
$993 million primarily due to higher average realized metal prices,
partially offset by an increase in tax payments and an increase in
receivables related to timing. Free Cash Flow8 also
increased to $578 million primarily due to higher operating cash
flow, partially offset by higher capital expenditures as described
above.
Balance sheet and liquidity ended the quarter with $4.6
billion of consolidated cash and approximately $7.6 billion of
liquidity; reported net debt to adjusted EBITDA of 0.2x9.
Nevada Gold Mines (NGM) attributable gold production was
284 thousand ounces with CAS of $753 per ounce and AISC of $985 per
ounce for the second quarter. EBITDA10 for NGM was $298
million.
Pueblo Viejo (PV) attributable gold production was 78
thousand ounces for the quarter. Pueblo Viejo EBITDA10 was $111
million and cash distributions received for the Company's equity
method investment totaled $23 million in the second quarter.
COVID-19 UPDATE
Newmont continues to maintain wide-ranging protective measures
for its workforce and neighboring communities, including screening,
physical distancing, deep cleaning and avoiding exposure for
at-risk individuals. The Company incurred incremental Covid
specific costs of $20 million during the quarter for activities
such as additional health and safety procedures, increased
transportation and community fund contributions. During the second
quarter of 2020, the Newmont Global Community Support Fund was
established to help host communities, governments and employees
combat the Covid pandemic. Amounts distributed from this fund were
$1 million during the quarter and have been adjusted from certain
non-GAAP metrics. The remaining $19 million is not adjusted from
our non-GAAP metrics.
We have mobilized a Covid vaccine working group with
representatives from across the globe. Newmont views vaccination as
critical in the fight against Covid-19 and actively encourages our
workforce to get vaccinated as they become eligible. We are working
to support authorities, through our Global Community Support Fund,
to improve the availability and deployment of vaccines to our
workforce and host communities.
PROJECTS UPDATE
Newmont’s capital-efficient project pipeline supports improving
production, lowering costs and extending mine life. Funding for the
current development capital projects Tanami Expansion 2 and Ahafo
North has been approved and these projects are in the execution
stage. The Company has included the Yanacocha Sulfides project in
its long-term outlook as the project is currently scheduled to be
approved for full funding in December 2021. Additional sustaining
and development projects, not listed below, represent incremental
improvements to the Company's outlook.
- Tanami Expansion 2 (Australia)
secures Tanami’s future as a long-life, low-cost producer with
potential to extend mine life beyond 2040 through the addition of a
1,460 meter hoisting shaft and supporting infrastructure to achieve
3.5 million tonnes per year of production and provide a platform
for future growth. The expansion is expected to increase average
annual gold production by approximately 150,000 to 200,000 ounces
per year for the first five years and is expected to reduce
operating costs by approximately 10 percent. Capital costs for the
project are estimated to be between $850 million and $950 million
with a commercial production date in the first half of 2024.
- Ahafo North (Africa) expands our
existing footprint in Ghana with four open pit mines and a
stand-alone mill located approximately 30 kilometers from the
Company’s Ahafo South operations. The project is expected to add
between 275,000 and 325,000 ounces per year with all-in sustaining
costs between $600 to $700 per ounce for the first five full years
of production (2024-2028). Capital costs for the project are
estimated to be between $750 and $850 million with a construction
completion date in the second half of 2023 and commercial
production in early-2024. Ahafo North is the best unmined gold
deposit in West Africa with approximately 3.5 million ounces of
Reserves and more than 1 million ounces of Measured and Indicated
and Inferred Resource11 and significant upside potential to extend
beyond Ahafo North’s current 13-year mine life.
- Yanacocha Sulfides (South
America)12 will develop the first phase of sulfide deposits and an
integrated processing circuit, including an autoclave to process
gold, copper and silver feedstock. The project is expected to add
500,000 gold equivalent ounces per year with all-in sustaining
costs between $700 to $800 per ounce for the first five full years
of production (2026-2030). An investment decision is expected in
December 2021 with a three year development period and estimated
capital costs of approximately $2 billion. The first phase focuses
on developing the Yanacocha Verde and Chaquicocha deposits to
extend Yanacocha’s operations beyond 2040 with second and third
phases having the potential to extend life for multiple
decades.
________________________________________________
1
Attributable gold production for the
second quarter 2021 includes 78 thousand ounces from the Company’s
equity method investment in Pueblo Viejo (40%).
2
Non-GAAP measure. See end of this release
for reconciliation to Costs applicable to sales.
3
Non-GAAP measure. See end of this release
for reconciliation to Costs applicable to sales.
4
Non-GAAP measure. See end of this release
for reconciliation to Net income (loss) attributable to Newmont
stockholders.
5
Non-GAAP measure. See end of this release
for reconciliation to Net income (loss) attributable to Newmont
stockholders.
6
Non-GAAP measure. See end of this release
for reconciliation to Sales.
7
Capital expenditures refers to Additions
to property plant and mine development from the Condensed
Consolidated Statements of Cash Flows.
8
Non-GAAP measure. See end of this release
for reconciliation to Net cash provided by operating
activities.
9
Non-GAAP measure. See end of this release
for reconciliation.
10
Non-GAAP measure. See end of this release
for reconciliation.
11
See note to U.S. Investors at the end of
this release; such resource estimate for Ahafo North is comprised
of 610,000 ounces of Measured and Indicated Resource and 410,000
ounces of Inferred Resource as at December 31, 2020.
12
Consolidated basis.
OUTLOOK
Newmont’s outlook reflects increasing gold production and
ongoing investment in its operating assets and most promising
growth prospects. The Company has included Yanacocha Sulfides in
its outlook as the development project is expected to reach
execution stage in December 2021. Additional development projects
that have not reached execution stage represent upside to guidance.
All production, cost and capital figures assume a $1,200/oz gold
price.
Newmont’s 2021 and longer-term outlook assumes operations
continue without major Covid-related interruptions. If at any point
the Company determines that continuing operations poses an
increased risk to our workforce or host communities, it will reduce
operational activities up to, and including, care and maintenance
and management of critical environmental systems. Please see
cautionary statement in the end notes for additional
information.
Please see cautionary statement in the end notes for additional
information. Investors are reminded that outlook is a range of plus
or minus 5 percent of the midpoints noted below. For further
discussion, investors are encouraged to attend Newmont’s Second
Quarter 2021 Earnings Conference Call.
Five Year Cost and Production Outlook
(+/- 5%)
Guidance metric
2021E
2022E
2023E
2024E
2025E
Gold Production* (Moz)
6.5
6.2 - 6.7
6.2 - 6.7
6.5 - 7.0
6.5 - 7.0
Other Metal Production** (Mozs)
1.3
1.2 - 1.4
1.4 - 1.6
1.4 - 1.6
1.4 - 1.6
Total GEO Production (Mozs)
7.8
7.5 - 8.0
7.7 - 8.2
8.0 - 8.5
8.0 - 8.5
CAS*** ($/oz)
$750
$650 - $750
$625 - $725
$600 - $700
$600 - $700
All-in Sustaining Costs*** ($/oz)
$970
$850 - $950
$825 - $925
$800 - $900
$800 - $900
Sustaining Capital* ($M)
$950
$900 - $1,100
$900 - $1,100
$900 - $1,100
$900 - $1,100
Development Capital* ($M)
$850
$1,000 - $1,200
$900 - $1,100
$200 - $400
$100 - $300
Total Capital* ($M)
$1,800
$2,000 - $2,200
$1,900 - $2,100
$1,200 - $1,400
$1,100 - $1,300
*Attributable basis; **Attributable
co-product gold equivalent ounces; includes copper, silver, lead
and zinc; ***Consolidated basis for gold
2021 Consolidated Expense Outlook ($M)
(+/-5%)
General & Administrative
260
Interest Expense
275
Depreciation and Amortization
2,500
Exploration & Advanced Projects
390
Adjusted Tax Rate a,b
34% - 38%
Federal Tax Rate b
27% - 30%
Mining Tax Rate b
6% - 9%
a
The adjusted tax rate excludes certain
items such as tax valuation allowance adjustments.
b
Assuming average prices of $1,500 per
ounce for gold, $22 per ounce for silver, $2.75 per pound for
copper, $0.90 per pound for lead, and $1.05 per pound for zinc and
achievement of current production and sales volumes and cost
estimates, we estimate our consolidated adjusted effective tax rate
related to continuing operations for 2021 will be between
34%-38%.
Three Months Ended June
30,
Six Months Ended June
30,
Operating Results
2021
2020
% Change
2021
2020
% Change
Attributable Sales (koz)
Attributable gold ounces sold (1)
1,383
1,198
15
%
2,744
2,567
7
%
Attributable gold equivalent ounces
sold
302
213
42
%
629
532
18
%
Average Realized Price ($/oz,
$/lb)
Average realized gold price
$
1,823
$
1,724
6
%
$
1,788
$
1,652
8
%
Average realized copper price
$
4.37
$
2.91
50
%
$
4.30
$
2.21
95
%
Average realized silver price
$
23.00
$
14.70
56
%
$
21.27
$
14.35
48
%
Average realized lead price
$
1.02
$
0.75
36
%
$
0.95
$
0.68
40
%
Average realized zinc price
$
1.34
$
0.70
91
%
$
1.19
$
0.65
83
%
Attributable Production (koz)
North America
397
232
71
%
810
608
33
%
South America
189
136
39
%
363
371
(2
)
%
Australia
299
294
2
%
568
552
3
%
Africa
202
193
5
%
407
379
7
%
Nevada
284
326
(13
)
%
587
655
(10
)
%
Total Gold (excluding equity method
investments)
1,371
1,181
16
%
2,735
2,565
7
%
Pueblo Viejo (40%) (2)
78
74
5
%
169
169
—
%
Total Gold
1,449
1,255
15
%
2,904
2,734
6
%
North America
260
108
141
%
545
418
30
%
Australia
43
30
43
%
75
59
27
%
Total Gold Equivalent Ounces
303
138
120
%
620
477
30
%
CAS Consolidated ($/oz, $/GEO)
North America
$
769
$
735
5
%
$
752
$
811
(7
)
%
South America
$
721
$
781
(8
)
%
$
753
$
796
(5
)
%
Australia
$
764
$
719
6
%
$
757
$
724
5
%
Africa
$
763
$
696
10
%
$
760
$
715
6
%
Nevada
$
753
$
797
(6
)
%
$
749
$
765
(2
)
%
Total Gold
$
755
$
748
1
%
$
754
$
766
(2
)
%
Total Gold (by-product)
$
586
$
684
(14
)
%
$
595
$
711
(16
)
%
North America
$
586
$
505
16
%
$
550
$
551
—
%
Australia
$
898
$
874
3
%
$
913
$
843
8
%
Total Gold Equivalent Ounces
$
629
$
555
13
%
$
590
$
583
1
%
AISC Consolidated ($/oz, $/GEO)
North America
$
985
$
1,162
(15
)
%
$
971
$
1,105
(12
)
%
South America
$
1,022
$
1,233
(17
)
%
$
1,041
$
1,087
(4
)
%
Australia
$
997
$
907
10
%
$
1,048
$
927
13
%
Africa
$
1,000
$
877
14
%
$
974
$
902
8
%
Nevada
$
985
$
979
1
%
$
924
$
953
(3
)
%
Total Gold
$
1,035
$
1,097
(6
)
%
$
1,037
$
1,061
(2
)
%
Total Gold (by-product)
$
918
$
1,104
(17
)
%
$
935
$
1,070
(13
)
%
North America
$
761
$
960
(21
)
%
$
762
$
888
(14
)
%
Australia
$
1,113
$
1,068
4
%
$
1,231
$
1,051
17
%
Total Gold Equivalent Ounces
$
886
$
974
(9
)
%
$
851
$
906
(6
)
%
(1)
Attributable gold ounces from the Pueblo
Viejo mine, an equity method investment, are not included in
attributable gold ounces sold.
(2)
Represents attributable gold from Pueblo
Viejo and does not include the Company's other equity method
investments. Attributable gold ounces produced at Pueblo Viejo are
not included in attributable gold ounces sold, as noted in footnote
1. Income and expenses of equity method investments are included in
Equity income (loss) of affiliates.
NEWMONT CORPORATION CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited, in millions
except per share)
Three Months Ended June
30,
Six Months Ended June
30,
2021
2020
2021
2020
Sales
$
3,065
$
2,365
$
5,937
$
4,946
Costs and expenses
Costs applicable to sales (1)
1,281
1,058
2,528
2,390
Depreciation and amortization
561
528
1,114
1,093
Reclamation and remediation
57
40
103
78
Exploration
52
26
87
70
Advanced projects, research and
development
37
26
68
53
General and administrative
64
72
129
137
Care and maintenance
2
125
2
145
Other expense, net
50
59
89
92
2,104
1,934
4,120
4,058
Other income (expense):
Gain on asset and investment sales,
net
—
(1
)
43
592
Other income, net
50
198
(32
)
9
Interest expense, net of capitalized
interest
(68
)
(78
)
(142
)
(160
)
(18
)
119
(131
)
441
Income (loss) before income and mining tax
and other items
943
550
1,686
1,329
Income and mining tax benefit
(expense)
(341
)
(164
)
(576
)
(141
)
Equity income (loss) of affiliates
49
29
99
66
Net income (loss) from continuing
operations
651
415
1,209
1,254
Net income (loss) from discontinued
operations
10
(68
)
31
(83
)
Net income (loss)
661
347
1,240
1,171
Net loss (income) attributable to
noncontrolling interests
(11
)
(3
)
(31
)
(5
)
Net income (loss) attributable to Newmont
stockholders
$
650
$
344
$
1,209
$
1,166
Net income (loss) attributable to Newmont
stockholders:
Continuing operations
$
640
$
412
$
1,178
$
1,249
Discontinued operations
10
(68
)
31
(83
)
$
650
$
344
$
1,209
$
1,166
Net income (loss) attributable to Newmont
stockholders per common share
Basic:
Continuing operations
$
0.80
$
0.51
$
1.47
$
1.55
Discontinued operations
0.01
(0.08
)
0.04
(0.10
)
$
0.81
$
0.43
$
1.51
$
1.45
Diluted:
Continuing operations
$
0.80
$
0.51
$
1.47
$
1.55
Discontinued operations
0.01
(0.08
)
0.04
(0.10
)
$
0.81
$
0.43
$
1.51
$
1.45
(1)
Excludes Depreciation and amortization and
Reclamation and remediation.
NEWMONT CORPORATION CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited, in
millions)
Three Months Ended June
30,
Six Months Ended June
30,
2021
2020
2021
2020
Operating activities:
Net income (loss)
$
661
$
347
$
1,240
$
1,171
Adjustments:
Depreciation and amortization
561
528
1,114
1,093
Gain on asset and investment sales,
net
—
1
(43
)
(592
)
Net loss (income) from discontinued
operations
(10
)
68
(31
)
83
Reclamation and remediation
53
37
96
72
Change in fair value of investments
(26
)
(227
)
84
(134
)
Equity earnings in affiliates, net of
distributions received
(55
)
3
(55
)
(34
)
Stock-based compensation
21
17
38
38
Deferred income taxes
39
(26
)
14
(144
)
Impairment of investments
—
—
—
93
Charges from debt extinguishment
—
3
—
77
Other non-cash adjustments
15
62
(32
)
2
Net change in operating assets and
liabilities
(266
)
(145
)
(591
)
(118
)
Net cash provided by (used in) operating
activities of continuing operations
993
668
1,834
1,607
Net cash provided by (used in) operating
activities of discontinued operations
2
(4
)
2
(7
)
Net cash provided by (used in) operating
activities
995
664
1,836
1,600
Investing activities:
Additions to property, plant and mine
development
(415
)
(280
)
(814
)
(608
)
Acquisitions, net
(328
)
—
(328
)
—
Proceeds from sales of investments
22
6
84
270
Contributions to equity method
investees
(45
)
(8
)
(72
)
(14
)
Return of investment from equity method
investees
—
—
18
43
Purchases of investments
(12
)
(21
)
(16
)
(33
)
Proceeds from sales of mining operations
and other assets, net
—
14
1
1,135
Other
1
5
—
46
Net cash provided by (used in) investing
activities
(777
)
(284
)
(1,127
)
839
Financing activities:
Dividends paid to common stockholders
(440
)
(201
)
(881
)
(313
)
Repayment of debt
(550
)
(90
)
(550
)
(1,160
)
Repurchases of common stock
(134
)
—
(134
)
(321
)
Distributions to noncontrolling
interests
(43
)
(42
)
(97
)
(88
)
Funding from noncontrolling interests
18
27
48
55
Payments on lease and other financing
obligations
(18
)
(17
)
(36
)
(33
)
Payments for withholding of employee taxes
related to stock-based compensation
(1
)
(3
)
(29
)
(39
)
Proceeds from issuance of debt, net
—
—
—
985
Other
13
35
13
37
Net cash provided by (used in) financing
activities
(1,155
)
(291
)
(1,666
)
(877
)
Effect of exchange rate changes on cash,
cash equivalents and restricted cash
2
4
—
—
Net change in cash, cash equivalents and
restricted cash
(935
)
93
(957
)
1,562
Cash, cash equivalents and restricted cash
at beginning of period
5,626
3,818
5,648
2,349
Cash, cash equivalents and restricted cash
at end of period
$
4,691
$
3,911
$
4,691
$
3,911
NEWMONT CORPORATION CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited, in
millions)
Three Months Ended June
30,
Six Months Ended June
30,
2021
2020
2021
2020
Reconciliation of cash, cash equivalents
and restricted cash:
Cash and cash equivalents
$
4,583
$
3,808
$
4,583
$
3,808
Restricted cash included in Other current
assets
1
—
1
—
Restricted cash included in Other
non-current assets
107
103
107
103
Total cash, cash equivalents and
restricted cash
$
4,691
$
3,911
$
4,691
$
3,911
NEWMONT CORPORATION CONDENSED
CONSOLIDATED BALANCE SHEETS (unaudited, in millions)
At June 30,
2021
At December 31, 2020
ASSETS
Cash and cash equivalents
$
4,583
$
5,540
Trade receivables
341
449
Investments
222
290
Inventories
965
963
Stockpiles and ore on leach pads
932
827
Other current assets
402
436
Current assets
7,445
8,505
Property, plant and mine development,
net
24,500
24,281
Investments
3,220
3,197
Stockpiles and ore on leach pads
1,801
1,705
Deferred income tax assets
328
337
Goodwill
2,771
2,771
Other non-current assets
612
573
Total assets
$
40,677
$
41,369
LIABILITIES
Accounts payable
$
503
$
493
Employee-related benefits
296
380
Income and mining taxes payable
333
657
Lease and other financing obligations
110
106
Debt
491
551
Other current liabilities
1,054
1,182
Current liabilities
2,787
3,369
Debt
4,989
5,480
Lease and other financing obligations
567
565
Reclamation and remediation
liabilities
3,855
3,818
Deferred income tax liabilities
2,239
2,073
Employee-related benefits
511
493
Silver streaming agreement
939
993
Other non-current liabilities
696
699
Total liabilities
16,583
17,490
Contingently redeemable noncontrolling
interest
34
34
EQUITY
Common stock
1,287
1,287
Treasury stock
(197
)
(168
)
Additional paid-in capital
18,105
18,103
Accumulated other comprehensive income
(loss)
(198
)
(216
)
Retained earnings
4,242
4,002
Newmont stockholders' equity
23,239
23,008
Noncontrolling interests
821
837
Total equity
24,060
23,845
Total liabilities and equity
$
40,677
$
41,369
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.
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 others to
understand the results of the continuing operations of the Company
and its direct and indirect subsidiaries relating to the sale of
products, by excluding certain items that have a disproportionate
impact on our results for a particular period. Adjustments to
continuing operations are presented before tax and net of our
partners’ noncontrolling interests, when applicable. The tax effect
of adjustments is presented in the Tax effect of adjustments line
and is calculated using the applicable regional tax rate.
Management’s determination of the components of Adjusted net income
(loss) are evaluated periodically and based, in part, on a review
of non-GAAP financial measures used by mining industry analysts.
Net income (loss) attributable to Newmont stockholders is
reconciled to Adjusted net income (loss) as follows:
Three Months Ended June 30,
2021
Six Months Ended June 30,
2021
per share data (1)
per share data (1)
basic
diluted
basic
diluted
Net income (loss) attributable to Newmont
stockholders
$
650
$
0.81
$
0.81
$
1,209
$
1.51
$
1.51
Net loss (income) attributable to Newmont
stockholders from discontinued operations
(10
)
(0.01
)
(0.01
)
(31
)
(0.04
)
(0.04
)
Net income (loss) attributable to Newmont
stockholders from continuing operations
640
0.80
0.80
1,178
1.47
1.47
Change in fair value of investments
(2)
(26
)
(0.03
)
(0.03
)
84
0.10
0.10
(Gain) loss on asset and investment sales
(3)
—
—
—
(43
)
(0.05
)
(0.05
)
Reclamation and remediation charges
(4)
20
0.02
0.02
30
0.04
0.04
Impairment of long-lived and other assets
(5)
11
0.01
0.01
12
0.01
0.01
Settlement costs(6)
8
0.01
0.01
11
0.01
0.01
Restructuring and severance, net (7)
5
—
—
9
0.01
0.01
COVID-19 specific costs (8)
1
—
—
2
—
—
Tax effect of adjustments (9)
(11
)
—
—
(30
)
(0.03
)
(0.03
)
Valuation allowance and other tax
adjustments, net (10)
22
0.03
0.02
11
0.02
0.02
Adjusted net income (loss)
$
670
$
0.84
$
0.83
$
1,264
$
1.58
$
1.58
Weighted average common shares (millions):
(11)
801
803
801
802
(1)
Per share measures may not recalculate due
to rounding.
(2)
Change in fair value of investments,
included in Other income, net, primarily represents unrealized
gains and losses related to the Company's investment in current and
non-current marketable and other equity securities. For additional
information regarding our investments, see Note 15 of the Condensed
Consolidated Financial Statements.
(3)
(Gain) loss on asset and investment sales,
included in Gain on asset and investment sales, net, primarily
represents a gain on the sale of TMAC. For additional information,
see Note 8 of the Condensed Consolidated Financial Statements.
(4)
Reclamation and remediation charges,
included in Reclamation and remediation, represent revisions to
reclamation and remediation plans at the Company's former operating
properties and historic mining operations that have entered the
closure phase and have no substantive future economic value.
(5)
Impairment of long-lived and other assets,
included in Other expense, net, represents non-cash write-downs of
various assets that are no longer in use.
(6)
Settlement costs, included in Other
expense, net, primarily are comprised of a voluntary contribution
made to the Republic of Suriname.
(7)
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. Total amounts are presented net
of income (loss) attributable to noncontrolling interests of $— and
$(1), respectively.
(8)
COVID-19 specific costs included in Other
expense, net, primarily include amounts distributed from the
Newmont Global Community Fund to help host communities, governments
and employees combat the COVID-19 pandemic. Adjusted net income
(loss) has not been adjusted for $19 and $40, respectively, of
incremental COVID-19 costs incurred as a result of actions taken to
protect against the impacts of the COVID-19 pandemic at our
operational sites. See Note 7 of the Condensed Consolidated
Financial Statements for further information.
(9)
The tax effect of adjustments, included in
Income and mining tax benefit (expense), represents the tax effect
of adjustments in footnotes (2) through (8), as described above,
and are calculated using the applicable regional tax rate.
(10)
Valuation allowance and other tax
adjustments, net, included in Income and mining tax benefit
(expense), is recorded for items such as foreign tax credits,
alternative minimum tax credits, capital losses, disallowed foreign
losses, and the effects of changes in foreign currency exchange
rates on deferred tax assets and deferred tax liabilities. The
adjustment for the three and six months ended June 30, 2021 is due
to increases or (decreases) to net operating losses, tax credit
carryovers and other deferred tax assets subject to valuation
allowance of $9 and $30 respectively, the effects of changes in
foreign exchange rates on deferred tax assets and liabilities of
$11 and $(17) respectively, changes to the reserve for uncertain
tax positions of $22 and $22 respectively, and other tax
adjustments of $(17) and $(19), respectively. Total amount is
presented net of income (loss) attributable to noncontrolling
interests of $(3) and $(5), respectively.
(11)
Adjusted net income (loss) per diluted
share is calculated using diluted common shares, which are
calculated in accordance with U.S. GAAP.
Three Months Ended June 30,
2020
Six Months Ended June 30,
2020
per share data (1)
per share data (1)
basic
diluted
basic
diluted
Net income (loss) attributable to Newmont
stockholders
$
344
$
0.43
$
0.43
$
1,166
$
1.45
$
1.45
Net loss (income) attributable to Newmont
stockholders from discontinued operations
68
0.08
0.08
83
0.10
0.10
Net income (loss) attributable to Newmont
stockholders from continuing operations
412
0.51
0.51
1,249
1.55
1.55
Gain (loss) on asset and investment sales,
net (2)
1
—
—
(592
)
(0.73
)
(0.73
)
Change in fair value of investments
(3)
(227
)
(0.28
)
(0.28
)
(134
)
(0.17
)
(0.17
)
Impairment of investments (4)
—
—
—
93
0.11
0.11
Loss on debt extinguishment (5)
3
—
—
77
0.09
0.09
COVID-19 specific costs (6)
33
0.04
0.04
35
0.04
0.04
Goldcorp transaction and integration costs
(7)
7
0.01
0.01
23
0.03
0.03
Settlement costs (8)
2
0.01
0.01
8
0.01
0.01
Impairment of long-lived and other assets
(9)
5
0.01
0.01
5
0.01
0.01
Restructuring and severance, net (10)
1
—
—
2
—
—
Pension settlements (11)
2
—
—
2
—
—
Tax effect of adjustments (12)
32
0.04
0.03
125
0.17
0.17
Valuation allowance and other tax
adjustments, net (13)
(10
)
(0.01
)
(0.01
)
(306
)
(0.38
)
(0.38
)
Adjusted net income (loss) (14)
$
261
$
0.33
$
0.32
$
587
$
0.73
$
0.73
Weighted average common shares (millions):
(15)
803
805
805
806
(1)
Per share measures may not recalculate due
to rounding.
(2)
(Gain) loss on asset and investment sales,
included in Gain on asset and investment sales, net, primarily
represents gains on the sale of Kalgoorlie and Continental. For
additional information, see Note 8 of the Condensed Consolidated
Financial Statements.
(3)
Change in fair value of investments,
included in Other income, net, primarily represents unrealized
gains and losses related to the Company's investments in current
and non-current marketable equity securities and our investment
instruments. For additional information regarding our investments,
see Note 15 of the Condensed Consolidated Financial Statements.
(4)
Impairment of investments, included in
Other income, net, represents the other-than-temporary impairment
of the TMAC investment.
(5)
Loss on debt extinguishment, included in
Other income, net, primarily represents losses on the
extinguishment of a portion of the 2022 Senior Notes and 2023
Senior Notes.
(6)
COVID-19 specific costs, included in Other
expense, net, represent incremental direct costs incurred as a
result of actions taken to protect against the impacts of the
COVID-19 pandemic. See Note 7 of the Condensed Consolidated
Financial Statements for further information.
(7)
Goldcorp transaction and integration
costs, included in Other expense, net, primarily represent
subsequent integration costs incurred during 2020 related to the
Newmont Goldcorp transaction.
(8)
Settlement costs, included in Other
expense, net, primarily represent certain costs associated with
legal and other settlements.
(9)
Impairment of long-lived and other assets,
included in Other expense, net, represents non-cash write-downs of
long-lived assets.
(10)
Restructuring and severance, net, included
in Other expense, net, primarily represents certain costs
associated with severance and legal costs. Amounts are presented
net of income (loss) attributable to noncontrolling interests of
$(1) and $(1), respectively.
(11)
Pension settlements, included in Other
income, net, represent pension settlement charges.
(12)
The tax effect of adjustments, included in
Income and mining tax benefit (expense), represents the tax effect
of adjustments in footnotes (2) through (11), as described above,
and are calculated using the applicable regional tax rate.
(13)
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
for the three and six months ended June 30, 2020 is due to a net
increase or (decrease) to net operating losses, tax credit
carryovers and other deferred tax assets subject to valuation
allowance of $(11) and $(120), respectively, the effects of changes
in foreign exchange rates on deferred tax assets and liabilities of
$(8) and $(187), respectively, changes to the reserve for uncertain
tax positions of $15 and $(9), respectively, and other tax
adjustments of $1 and $32, respectively. Total amount is presented
net of income (loss) attributable to noncontrolling interests of
$(7) and $(22), respectively.
(14)
Adjusted net income (loss) has not been
adjusted for $115 and $133 of cash and $68 and $74 of non-cash care
and maintenance costs, included in Care and maintenance and
Depreciation and amortization, respectively, which primarily
represent costs associated with our Musselwhite, Éléonore,
Yanacocha and Cerro Negro sites being temporarily placed into care
and maintenance in response to the COVID-19 pandemic during a
portion of the three and six months ended June 30, 2020,
respectively. Amounts are presented net of income (loss)
attributable to noncontrolling interests of $10, $12, $2 and $3,
respectively.
(15)
Adjusted net income (loss) per diluted
share is calculated using diluted common shares, which are
calculated in accordance with U.S. GAAP.
Earnings before interest, taxes and
depreciation and amortization and Adjusted earnings before
interest, taxes and depreciation and amortization
Management uses Earnings before interest, taxes and depreciation
and amortization (“EBITDA”) and EBITDA adjusted for non-core or
certain items that have a disproportionate impact on our results
for a particular period (“Adjusted EBITDA”) as non-GAAP measures to
evaluate the Company’s operating performance. EBITDA and Adjusted
EBITDA do not represent, and should not be considered an
alternative to, net income (loss), operating income (loss), or cash
flow from operations as those terms are defined by GAAP, and do not
necessarily indicate whether cash flows will be sufficient to fund
cash needs. Although Adjusted EBITDA and similar measures are
frequently used as measures of operations and the ability to meet
debt service requirements by other companies, our calculation of
Adjusted EBITDA is not necessarily comparable to such other
similarly titled captions of other companies. The Company believes
that Adjusted EBITDA provides useful information to investors and
others in understanding and evaluating our operating results in the
same manner as our management and Board of Directors. Management’s
determination of the components of Adjusted EBITDA are evaluated
periodically and based, in part, on a review of non-GAAP financial
measures used by mining industry analysts. Net income (loss)
attributable to Newmont stockholders is reconciled to EBITDA and
Adjusted EBITDA as follows:
Three Months Ended June
30,
Six Months Ended June
30,
2021
2020
2021
2020
Net income (loss) attributable to Newmont
stockholders
$
650
$
344
$
1,209
$
1,166
Net income (loss) attributable to
noncontrolling interests
11
3
31
5
Net loss (Income) from discontinued
operations
(10
)
68
(31
)
83
Equity loss (income) of affiliates
(49
)
(29
)
(99
)
(66
)
Income and mining tax expense
(benefit)
341
164
576
141
Depreciation and amortization
561
528
1,114
1,093
Interest expense, net of capitalized
interest
68
78
142
160
EBITDA
$
1,572
$
1,156
$
2,942
$
2,582
Adjustments:
Change in fair value of investments
(1)
$
(26
)
$
(227
)
$
84
$
(134
)
(Gain) loss on asset and investment sales
(2)
—
1
(43
)
(592
)
Reclamation and remediation charges
(3)
20
—
30
—
Impairment of long-lived and other assets
(4)
11
5
12
5
Settlement costs (5)
8
2
11
8
Restructuring and severance (6)
5
2
10
3
COVID-19 specific costs (7)
1
33
2
35
Impairment of investments (8)
—
—
—
93
Loss on debt extinguishment (9)
—
3
—
77
Goldcorp transaction and integration costs
(10)
—
7
—
23
Pension settlements
—
2
—
2
Adjusted EBITDA (12)
$
1,591
$
984
$
3,048
$
2,102
(1)
Change in fair value of investments,
included in Other income, net, primarily represents unrealized
gains and losses related to the Company's investments in current
and non-current marketable and other equity securities. For
additional information regarding our investments, see Note 15 of
the Condensed Consolidated Financial Statements.
(2)
(Gain) loss on asset and investment sales,
included in Gain on asset and investment sales, net, primarily
represents a gain on the sale of TMAC in 2021 and gains on the sale
of Kalgoorlie and Continental in 2020. For additional information,
see Note x8 of the Condensed Consolidated Financial Statements.
(3)
Reclamation and remediation charges,
included in Reclamation and remediation, represent revisions to
reclamation and remediation plans at the Company's former operating
properties and historic mining operations that have entered the
closure phase and have no substantive future economic value.
(4)
Impairment of long-lived and other assets,
included in Other expense, net, represents non-cash write-downs of
various assets that are no longer in use.
(5)
Settlement costs, included in Other
expense, net, are primarily comprised of a voluntary contribution
made to the Republic of Suriname in 2021 and other certain costs
associated with legal and other settlements in both periods
presented.
(6)
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.
(7)
COVID-19 specific costs, included in Other
expense, net, primarily include amounts distributed from Newmont
Global Community Support Fund to help host communities, governments
and employees combat the COVID-19 pandemic. For the three and six
months ended June 30, 2021, Adjusted EBITDA has not been adjusted
for $19 and $40 of incremental COVID-19 costs incurred as a result
of actions taken to protect against the impacts of the COVID-19
pandemic at our operational sites. See Note 7 of the Condensed
Consolidated Financial Statements for further information.
(8)
Impairment of investments, included in
Other income, net, primarily represents the other-than-temporary
impairment of the TMAC investment recorded in 2020.
(9)
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 2020.
(10)
Goldcorp transaction and integration
costs, included in Other expense, net, primarily represent
subsequent integration costs incurred during 2020 related to the
Newmont Goldcorp transaction.
(11)
Adjusted EBITDA has not been adjusted for
cash care and maintenance costs, included in Care and maintenance,
which represent costs incurred associated with certain mine sites
being temporarily placed into care and maintenance in response to
the COVID-19 pandemic. Cash care and maintenance costs were $2 and
$2 during the three and six months ended June 30, 2021,
respectively, relating to our Tanami mine site. Cash care and
maintenance costs were $125 and $145 during the three and six
months ended June 30, 2020, respectively, relating to our
Musselwhite, Éléonore, Peñasquito, Yanacocha, and Cerro Negro mine
sites.
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 June
30,
Six Months Ended June
30,
2021
2020
2021
2020
Equity income (loss) of affiliates
$
49
$
29
$
99
$
66
Equity (income) loss of affiliates,
excluding Pueblo Viejo (1)
(5
)
6
(5
)
17
Equity income (loss) of affiliates, Pueblo
Viejo (1)
44
35
94
83
Reconciliation of Pueblo Viejo on
attributable basis:
Income and mining tax expense
(benefit)
33
29
80
66
Depreciation and amortization
34
18
54
34
Pueblo Viejo EBITDA
$
111
$
82
$
228
$
183
(1)
See Note 11 of the Condensed Consolidated
Financial Statements.
The Company uses NGM EBITDA as a non-GAAP measure to evaluate
the operating performance of its investment in Nevada Gold Mines
(NGM). NGM EBITDA does not represent, and should not be considered
an alternative to, Income (loss) before income and mining tax and
other items, as defined by GAAP, and does not necessarily indicate
whether cash distributions from NGM will match NGM EBITDA. Although
the Company has the ability to exert significant influence and
proportionally consolidates its 38.5% interest in NGM, it does not
have direct control over the operations or resulting revenues and
expenses of its investment in NGM. The Company believes that NGM
EBITDA provides useful information to investors and others in
understanding and evaluating the operating results of its
investment in NGM, in the same manner as management and the Board
of Directors. Income (loss) before income and mining tax and other
items is reconciled to NGM EBITDA as follows:
Three Months Ended June
30,
Six Months Ended June
30,
2021
2020
2021
2020
Income (Loss) before Income and Mining Tax
and other Items, NGM (1)
$
170
$
130
$
337
$
263
Depreciation and amortization (1)
128
147
255
278
NGM EBITDA
$
298
$
277
$
592
$
541
(1)
See Note 3 to the Condensed Consolidated
Financial Statements.
Free Cash Flow
Management uses Free Cash Flow as a non-GAAP measure to analyze
cash flows generated from operations. Free Cash Flow is Net cash
provided by (used in) operating activities less Net cash provided
by (used in) operating activities of discontinued operations less
Additions to property, plant and mine development as presented on
the Condensed Consolidated Statements of Cash Flows. The Company
believes Free Cash Flow is also useful as one of the bases for
comparing the Company’s performance with its competitors. Although
Free Cash Flow and similar measures are frequently used as measures
of cash flows generated from operations by other companies, the
Company’s calculation of Free Cash Flow is not necessarily
comparable to such other similarly titled captions of other
companies.
The presentation of non-GAAP Free Cash Flow is not meant to be
considered in isolation or as an alternative to net income as an
indicator of the Company’s performance, or as an alternative to
cash flows from operating activities as a measure of liquidity as
those terms are defined by GAAP, and does not necessarily indicate
whether cash flows will be sufficient to fund cash needs. The
Company’s definition of Free Cash Flow is limited in that it does
not represent residual cash flows available for discretionary
expenditures due to the fact that the measure does not deduct the
payments required for debt service and other contractual
obligations or payments made for business acquisitions. Therefore,
the Company believes it is important to view Free Cash Flow as a
measure that provides supplemental information to the Company’s
Condensed Consolidated Statements of Cash Flows.
The following table sets forth a reconciliation of Free Cash
Flow, a non-GAAP financial measure, to Net cash provided by (used
in) operating activities, which the Company believes to be the GAAP
financial measure most directly comparable to Free Cash Flow, as
well as information regarding Net cash provided by (used in)
investing activities and Net cash provided by (used in) financing
activities.
Three Months Ended June
30,
Six Months Ended June
30,
2021
2020
2021
2020
Net cash provided by (used in) operating
activities
$
995
$
664
$
1,836
$
1,600
Less: Net cash used in (provided by)
operating activities of discontinued operations
(2
)
4
(2
)
7
Net cash provided by (used in) operating
activities of continuing operations
993
668
1,834
1,607
Less: Additions to property, plant and
mine development
(415
)
(280
)
(814
)
(608
)
Free Cash Flow
$
578
$
388
$
1,020
$
999
Net cash provided by (used in) investing
activities (1)
$
(777
)
$
(284
)
$
(1,127
)
$
839
Net cash provided by (used in) financing
activities
$
(1,155
)
$
(291
)
$
(1,666
)
$
(877
)
(1)
Net cash provided by (used in) investing
activities includes Additions to property, plant and mine
development, which is included in the Company’s computation of Free
Cash Flow.
Attributable Free Cash Flow
Management uses Attributable Free Cash Flow as a non-GAAP
measure to analyze cash flows generated from operations that are
attributable to the Company. Attributable Free Cash Flow is Net
cash provided by (used in) operating activities after deducting net
cash flows from operations attributable to noncontrolling interests
less Net cash provided by (used in) operating activities of
discontinued operations after deducting net cash flows from
discontinued operations attributable to noncontrolling interests
less Additions to property, plant and mine development after
deducting property, plant and mine development attributable to
noncontrolling interests. The Company believes that Attributable
Free Cash Flow is useful as one of the bases for comparing the
Company’s performance with its competitors. Although Attributable
Free Cash Flow and similar measures are frequently used as measures
of cash flows generated from operations by other companies, the
Company’s calculation of Attributable Free Cash Flow is not
necessarily comparable to such other similarly titled captions of
other companies.
The presentation of non-GAAP Attributable Free Cash Flow is not
meant to be considered in isolation or as an alternative to Net
income attributable to Newmont stockholders as an indicator of the
Company’s performance, or as an alternative to Net cash provided by
(used in) operating activities as a measure of liquidity as those
terms are defined by GAAP, and does not necessarily indicate
whether cash flows will be sufficient to fund cash needs. The
Company’s definition of Attributable Free Cash Flow is limited in
that it does not represent residual cash flows available for
discretionary expenditures due to the fact that the measure does
not deduct the payments required for debt service and other
contractual obligations or payments made for business acquisitions.
Therefore, the Company believes it is important to view
Attributable Free Cash Flow as a measure that provides supplemental
information to the Company’s Condensed Consolidated Statements of
Cash Flows.
The following tables set forth a reconciliation of Attributable
Free Cash Flow, a non-GAAP financial measure, to Net cash provided
by (used in) operating activities, which the Company believes to be
the GAAP financial measure most directly comparable to Attributable
Free Cash Flow, as well as information regarding Net cash provided
by (used in) investing activities and Net cash provided by (used
in) financing activities.
Three Months Ended June 30,
2021
Six Months Ended June 30,
2021
Consolidated
Attributable to noncontrolling
interests (1)
Attributable to Newmont
Stockholders
Consolidated
Attributable to noncontrolling
interests (1)
Attributable to Newmont
Stockholders
Net cash provided by (used in) operating
activities
$
995
$
(33)
$
962
$
1,836
$
(53)
$
1,783
Less: Net cash used in (provided by)
operating activities of discontinued operations
(2)
—
(2)
(2)
—
(2)
Net cash provided by (used in) operating
activities of continuing operations
993
(33)
960
1,834
(53)
1,781
Less: Additions to property, plant and
mine development (2)
(415)
15
(400)
(814)
31
(783)
Free Cash Flow
$
578
$
(18)
$
560
$
1,020
$
(22)
$
998
Net cash provided by (used in) investing
activities (3)
$
(777)
$
(1,127)
Net cash provided by (used in) financing
activities
$
(1,155)
$
(1,666)
(1)
Adjustment to eliminate a portion of Net
cash provided by (used in) operating activities, Net cash provided
by (used in) operating activities of discontinued operations and
Additions to property, plant and mine development attributable to
noncontrolling interests, which relate to Yanacocha (48.65%) and
Merian (25%).
(2)
For the three months ended June 30, 2021
Yanacocha and Merian had total consolidated Additions to property,
plant and mine development of $26 and $11, respectively, on a cash
basis. For the six months ended June 30, 2021, Yanacocha and Merian
had total consolidated Additions to property, plant and mine
development of $54 and $22, respectively, on a cash basis.
(3)
Net cash provided by (used in) investing
activities includes Additions to property, plant and mine
development, which is included in the Company’s computation of Free
Cash Flow.
Three Months Ended June 30,
2020
Six Months Ended June 30,
2020
Consolidated
Attributable to noncontrolling
interests (1)
Attributable to Newmont
Stockholders
Consolidated
Attributable to noncontrolling
interests (1)
Attributable to Newmont
Stockholders
Net cash provided by (used in) operating
activities
$
664
$
(29
)
$
635
$
1,600
$
(82
)
$
1,518
Less: Net cash used in (provided by)
operating activities of discontinued operations
4
—
4
7
—
7
Net cash provided by (used in) operating
activities of continuing operations
668
(29
)
639
1,607
(82
)
1,525
Less: Additions to property, plant and
mine development (2)
(280
)
13
(267
)
(608
)
25
(583
)
Free Cash Flow
$
388
$
(16
)
$
372
$
999
$
(57
)
$
942
Net cash provided by (used in) investing
activities (3)
$
(283
)
$
840
Net cash provided by (used in) financing
activities
$
(291
)
$
(877
)
(1)
Adjustment to eliminate a portion of Net
cash provided by (used in) operating activities, Net cash provided
by (used in) operating activities of discontinued operations and
Additions to property, plant and mine development attributable to
noncontrolling interests, which relate to Yanacocha (48.65%) and
Merian (25%).
(2)
For the three months ended June 30, 2020
Yanacocha and Merian had total consolidated Additions to property,
plant and mine development of $21 and $9, respectively, on a cash
basis. For the six months ended June 30, 2020, Yanacocha and Merian
had total consolidated Additions to property, plant and mine
development of $42 and $18, respectively, on a cash basis.
(3)
Net cash provided by (used in) investing
activities includes Additions to property, plant and mine
development, which is included in the Company’s computation of Free
Cash Flow.
Costs applicable to sales per ounce/gold
equivalent ounce
Costs applicable to sales per ounce/gold equivalent ounce are
non-GAAP financial measures. These measures are calculated by
dividing the costs applicable to sales of gold and other metals by
gold ounces or gold equivalent ounces sold, respectively. These
measures are calculated for the periods presented on a consolidated
basis. Costs applicable to sales per ounce/gold equivalent ounce
statistics are intended to provide additional information only and
do not have any standardized meaning prescribed by GAAP and should
not be considered in isolation or as a substitute for measures of
performance prepared in accordance with GAAP. The measures are not
necessarily indicative of operating profit or cash flow from
operations as determined under GAAP. Other companies may calculate
these measures differently.
The following tables reconcile these non-GAAP measures to the
most directly comparable GAAP measures.
Costs applicable to sales per
ounce
Three Months Ended June
30,
Six Months Ended June
30,
2021
2020
2021
2020
Costs applicable to sales (1)(2)
$
1,091
$
940
$
2,156
$
2,080
Gold sold (thousand ounces)
1,444
1,255
2,861
2,715
Costs applicable to sales per ounce
(3)
$
755
$
748
$
754
$
766
(1)
Includes by-product credits of $72 and
$127 during the three and six months ended June 30, 2021,
respectively, and $20 and $44 during the three and six months ended
June 30, 2020, respectively.
(2)
Excludes Depreciation and amortization and
Reclamation and remediation.
(3)
Per ounce measures may not recalculate due
to rounding.
Costs applicable to sales per gold equivalent ounce
Three Months Ended June
30,
Six Months Ended June
30,
2021
2020
2021
2020
Costs applicable to sales (1)(2)
$
190
$
118
$
372
$
310
Gold equivalent ounces - other metals
(thousand ounces) (3)
302
213
629
532
Costs applicable to sales per ounce
(4)
$
629
$
555
$
590
$
583
(1)
Includes by-product credits of $2 and $3
during the three and six months ended June 30, 2021, respectively,
and $1 and $1 during the three and six months ended June 30, 2020,
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 ($22.00/oz.), Lead ($0.90/lb.) and Zinc
($1.05/lb.) pricing for 2021 and Gold ($1,200/oz.), Copper
($2.75/lb.), Silver ($16.00/oz.), Lead ($0.95/lb.) and Zinc
($1.20/lb.) pricing for 2020.
(4)
Per ounce measures may not recalculate due
to rounding.
Costs applicable to sales per ounce for
Nevada Gold Mines (NGM)
Three Months Ended June
30,
Six Months Ended June
30,
2021
2020
2021
2020
Cost applicable to sales, NGM (1)(2)
$
215
$
260
$
442
$
503
Gold sold (thousand ounces), NGM
285
325
590
657
Costs applicable to sales per ounce, NGM
(3)
$
753
$
797
$
749
$
765
(1)
See Note 3 to the Condensed Consolidated
Financial Statements.
(2)
Excludes Depreciation and amortization and
Reclamation and remediation.
(3)
Per ounce measures may not recalculate due
to rounding.
All-In Sustaining Costs
Newmont has developed a metric that expands on GAAP measures,
such as cost of goods sold, and non-GAAP measures, such as costs
applicable to sales per ounce, to provide visibility into the
economics of our mining operations related to expenditures,
operating performance and the ability to generate cash flow from
our continuing operations.
Current GAAP measures used in the mining industry, such as cost
of goods sold, do not capture all of the expenditures incurred to
discover, develop and sustain production. Therefore, we believe
that all-in sustaining costs is a non-GAAP measure that provides
additional information to management, investors and analysts that
aids in the understanding of the economics of our operations and
performance compared to other producers and provides investors
visibility by better defining the total costs associated with
production.
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 and Boddington mines. The other metals CAS at those mine
sites is disclosed in Note 3 of the Condensed Consolidated
Financial Statements. The allocation of CAS between gold and other
metals at the Peñasquito and Boddington 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
and Boddington 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 and Boddington mines. We also allocate
these costs incurred at the Other North America, Other Australia
and Corporate and Other locations using the proportion of CAS
between gold and other metals.
General and administrative. Includes costs related to
administrative tasks not directly related to current production,
but rather related to supporting our corporate structure and
fulfilling our obligations to operate as a public company.
Including these expenses in the AISC metric provides visibility of
the impact that general and administrative activities have on
current operations and profitability on a per ounce basis. We
allocate these costs to gold and other metals at the Other North
America, Other Australia and Corporate and Other locations using
the proportion of CAS between gold and other metals.
Care and maintenance and Other expense, net. Care and
maintenance includes direct operating costs incurred at the mine
sites during the period that these sites were temporarily placed
into care and maintenance in response to the COVID-19 pandemic. 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 and Boddington mines. We also allocate these costs
incurred at the Other North America, Other Australia and Corporate
and Other locations using the proportion of CAS between gold and
other metals.
Treatment and refining costs. Includes costs paid to smelters
for treatment and refining of our concentrates to produce the
salable metal. These costs are presented net as a reduction of
Sales on the 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 and Boddington 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
and Boddington mines. We also allocate these costs incurred at the
Other North America, Other Australia and Corporate and Other
locations using the proportion of CAS between gold and other
metals.
Three Months Ended
June 30, 2021
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)(8)
Treatment and Refining
Costs
Sustaining Capital and Lease
Related Costs(9)(10)
All-In Sustaining
Costs
Ounces (000) Sold
All-In Sustaining Costs Per
oz.(11)
Gold
CC&V
$
59
$
1
$
5
$
—
$
—
$
—
$
7
$
72
63
$
1,142
Musselwhite
37
1
2
—
1
—
9
50
35
1,420
Porcupine
61
1
5
—
—
—
13
80
66
1,193
Éléonore
65
—
1
—
1
—
19
86
67
1,287
Peñasquito
95
2
—
—
1
5
14
117
181
656
Other North America
—
—
(1
)
—
1
—
—
—
—
—
North America
317
5
12
—
4
5
62
405
412
985
Yanacocha
32
24
—
—
8
—
6
70
68
1,029
Merian
83
1
3
—
2
—
10
99
108
909
Cerro Negro
69
2
—
—
4
—
14
89
79
1,133
Other South America
—
—
—
2
1
—
—
3
—
—
South America
184
27
3
2
15
—
30
261
255
1,022
Boddington
162
3
1
—
—
3
24
193
189
1,023
Tanami
65
1
1
—
2
—
30
99
109
919
Other Australia
—
—
—
2
1
—
2
5
—
—
Australia
227
4
2
2
3
3
56
297
298
997
Ahafo
92
2
1
—
2
—
19
116
104
1,122
Akyem
56
7
1
—
1
—
11
76
90
828
Other Africa
—
—
1
2
—
—
—
3
—
—
Africa
148
9
3
2
3
—
30
195
194
1,000
Nevada Gold Mines
215
3
4
2
2
—
54
280
285
985
Nevada
215
3
4
2
2
—
54
280
285
985
Corporate and Other
—
—
14
38
(2
)
—
5
55
—
—
Total Gold
$
1,091
$
48
$
38
$
46
$
25
$
8
$
237
$
1,493
1,444
$
1,035
Gold equivalent ounces - other
metals (12)
Peñasquito
$
152
$
3
$
1
$
—
$
2
$
14
$
25
$
197
260
$
755
Other North America
—
—
—
1
—
—
—
1
—
—
North America
152
3
1
1
2
14
25
198
260
761
Boddington
38
—
1
—
—
2
5
46
42
1,088
Other Australia
—
—
—
1
—
—
—
1
—
—
Australia
38
—
1
1
—
2
5
47
42
1,113
Corporate and Other
—
—
6
16
—
—
1
23
—
—
Total Gold Equivalent Ounces
$
190
$
3
$
8
$
18
$
2
$
16
$
31
$
268
302
$
886
Consolidated
$
1,281
$
51
$
46
$
64
$
27
$
24
$
268
$
1,761
(1)
Excludes Depreciation and amortization and
Reclamation and remediation.
(2)
Includes by-product credits of $74 and
excludes co-product revenues of $435.
(3)
Includes stockpile and leach pad inventory
adjustments of $5 at CC&V.
(4)
Reclamation costs include operating
accretion and amortization of asset retirement costs of $20 and
$31, 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 $13 and $24, respectively.
(5)
Advanced projects, research and
development and exploration excludes development expenditures of $1
at CC&V, $2 at Porcupine, $1 at Éléonore, $2 at Other North
America, $3 at Yanacocha, $1 at Cerro Negro, $9 at Other South
America, $7 at Tanami, $4 at Other Australia, $4 at Ahafo, $1 at
Akyem, $4 at NGM and $4 at Corporate and Other, totaling $43
related to developing new operations or major projects at existing
operations where these projects will materially benefit the
operation.
(6)
Care and maintenance includes $2 at Tanami
of cash care and maintenance costs associated with the site
temporarily being placed into care and maintenance or operating at
reduced levels in response to the COVID-19 pandemic, during the
period ended June 30, 2021 that we would have continued to incur if
the site were not temporarily placed into care and maintenance.
(7)
Other expense, net includes incremental
COVID-19 costs incurred as a result of actions taken to protect
against the impacts of the COVID-19 pandemic at our operational
sites of $6 for North America, $11 for South America and $2 for
Africa, totaling $19.
(8)
Other expense, net is adjusted for
impairment of long-lived and other assets of $11, settlement costs
of $8, restructuring and severance of $5 and distributions from the
Newmont Global Community Support Fund of $1.
(9)
Includes sustaining capital expenditures
of $74 for North America, $30 for South America, $58 for Australia,
$29 for Africa, $54 for Nevada, and $6 for Corporate and Other,
totaling $251 and excludes development capital expenditures,
capitalized interest and the change in accrued capital totaling
$164. The following are major development projects: Pamour,
Yanacocha Sulfides, Quecher Main, Cerro Negro expansion projects,
Tanami Expansion 2, Subika Mining Method Change, Ahafo North,
Goldrush Complex and Turquoise Ridge 3rd shaft.
(10)
Includes finance lease payments for
sustaining projects of $17.
(11)
Per ounce measures may not recalculate due
to rounding.
(12)
Gold equivalent ounces is calculated as
pounds or ounces produced multiplied by the ratio of the other
metals price to the gold price, using Gold ($1,200/oz.), Copper
($2.75/lb.), Silver ($22.00/oz.), Lead ($0.90/lb.) and Zinc
($1.05/lb.) pricing for 2021.
Three Months EndedJune 30, 2020
Costs Applicable to
Sales(1)(2)(3)
Reclamation Costs(4)
Advanced Projects, Research
and Development and Exploration(5)
General and
Administrative
Care and Maintenance and Other
Expense, Net(6)(7)
Treatment and Refining
Costs
Sustaining Capital and Lease
Related Costs(8)(9)
All-In Sustaining
Costs
Ounces (000) Sold
All-In Sustaining Costs Per
oz.(10)(11)
Gold
CC&V
$
59
$
2
$
1
$
—
$
—
$
—
$
11
$
73
64
$
1,132
Musselwhite
2
—
1
—
19
—
2
24
—
N.M.
Porcupine
58
1
4
—
—
—
8
71
87
800
Éléonore
13
1
1
—
20
—
3
38
13
2,832
Peñasquito
50
1
—
—
19
7
2
79
84
949
Other North America
—
—
(2
)
5
1
—
1
5
—
—
North America
182
5
5
5
59
7
27
290
248
1,162
Yanacocha
62
12
—
—
22
—
4
100
67
1,484
Merian
72
1
2
1
—
—
8
84
101
833
Cerro Negro
21
—
(2
)
—
31
—
6
56
30
1,838
Other South America
—
—
—
3
1
—
—
4
—
—
South America
155
13
—
4
54
—
18
244
198
1,233
Boddington
142
3
1
—
—
2
22
170
159
1,068
Tanami
62
1
2
—
—
—
19
84
125
672
Other Australia
—
—
—
2
—
—
2
4
—
—
Australia
204
4
3
2
—
2
43
258
284
907
Ahafo
84
2
1
—
1
—
19
107
106
1,008
Akyem
55
5
1
—
1
—
5
67
94
713
Other Africa
—
—
—
1
—
—
—
1
—
—
Africa
139
7
2
1
2
—
24
175
200
877
Nevada Gold Mines
260
4
4
2
1
4
44
319
325
979
Nevada
260
4
4
2
1
4
44
319
325
979
Corporate and Other
—
—
17
58
1
—
15
91
—
—
Total Gold
$
940
$
33
$
31
$
72
$
117
$
13
$
171
$
1,377
1,255
$
1,097
Gold equivalent ounces - other
metals (12)
Peñasquito
$
93
$
2
$
—
$
—
$
18
$
37
$
27
$
177
185
$
960
Boddington
25
1
—
—
—
1
4
31
28
1,068
Total Gold Equivalent Ounces
$
118
$
3
$
—
$
—
$
18
$
38
$
31
$
208
213
$
974
Consolidated
$
1,058
$
36
$
31
$
72
$
135
$
51
$
202
$
1,585
(1)
Excludes Depreciation and amortization and
Reclamation and remediation.
(2)
Includes by-product credits of $21 and
excludes co-product revenues of $199.
(3)
Includes stockpile and leach pad inventory
adjustments of $11 at NGM.
(4)
Reclamation costs include operating
accretion and amortization of asset retirement costs of $23 and
$13, respectively, and exclude non-operating accretion and
reclamation and remediation adjustments of $13 and $4,
respectively.
(5)
Advanced projects, research and
development and exploration excludes development expenditures of $2
at CC&V, $1 at Yanacocha, $2 at Merian, $(4) at Cerro Negro, $5
at Other South America, $1 at Tanami, $4 at Other Australia, $3 at
Ahafo and $7 at NGM, totaling $21 related to developing new
operations or major projects at existing operations where these
projects will materially benefit the operation.
(6)
Care and maintenance includes $20 at
Musselwhite, $20 at Éléonore, $38 at Peñasquito, $21 at Yanacocha,
$25 at Cerro Negro and $1 at Other South America of cash care and
maintenance costs associated with the sites temporarily being
placed into care and maintenance in response to the COVID-19
pandemic, during the period ended June 30, 2020 that we would have
continued to incur if the site were not temporarily placed into
care and maintenance.
(7)
Other expense, net is adjusted for
incremental costs of responding to the COVID-19 pandemic of $33,
Goldcorp transaction and integration costs of $7, impairment of
long-lived and other assets of $5 and restructuring and other costs
of $4.
(8)
Includes sustaining capital expenditures
of $40 for North America, $18 for South America, $45 for Australia,
$24 for Africa, $44 for Nevada and $15 for Corporate and Other,
totaling $186 and excludes development capital expenditures,
capitalized interest and the change in accrued capital totaling
$94. The following are major development projects: Musselwhite
Materials Handling, Éléonore Lower Mine Material Handling System,
Quecher Main, Yanacocha Sulfides, Tanami Expansion 2, Subika Mining
Method Change, Ahafo North, Goldrush Complex, Turquoise Ridge 3rd
shaft and Range Front Declines at Cortez.
(9)
Includes finance lease payments for
sustaining projects of $16.
(10)
Per ounce measures may not recalculate due
to rounding.
(11)
N.M. - Not meaningful
(12)
Gold equivalent ounces is calculated as
pounds or ounces produced multiplied by the ratio of the other
metals price to the gold price, using Gold ($1,200/oz.), Copper
($2.75/lb.), Silver ($16.00/oz.), Lead ($0.95/lb.) and Zinc
($1.20/lb.) pricing for 2020.
Six Months EndedJune 30, 2021
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)(8)
Treatment and Refining
Costs
Sustaining Capital and Lease
Related Costs(9)(10)
All-In Sustaining
Costs
Ounces (000) Sold
All-In Sustaining Costs Per
oz.(11)
Gold
CC&V
$
120
$
3
$
5
$
—
$
—
$
—
$
16
$
144
119
$
1,209
Musselwhite
76
1
4
—
1
—
18
100
74
1,359
Porcupine
127
2
9
—
—
—
22
160
140
1,146
Éléonore
118
1
2
—
3
—
37
161
128
1,258
Peñasquito
184
4
1
—
4
15
30
238
371
644
Other North America
—
—
—
2
1
—
—
3
—
—
North America
625
11
21
2
9
15
123
806
832
971
Yanacocha
82
36
2
—
16
—
8
144
129
1,117
Merian
164
2
3
—
3
—
20
192
216
887
Cerro Negro
109
3
1
—
10
—
25
148
126
1,181
Other South America
—
—
—
4
2
—
—
6
—
—
South America
355
41
6
4
31
—
53
490
471
1,041
Boddington
293
6
3
—
—
6
80
388
335
1,157
Tanami
135
1
2
—
3
—
55
196
231
854
Other Australia
—
—
—
5
1
—
3
9
—
—
Australia
428
7
5
5
4
6
138
593
566
1,048
Ahafo
184
4
3
—
3
—
36
230
208
1,108
Akyem
122
15
1
—
1
—
19
158
194
806
Other Africa
—
—
1
4
—
—
—
5
—
—
Africa
306
19
5
4
4
—
55
393
402
974
Nevada Gold Mines
442
5
6
5
2
—
85
545
590
924
Nevada
442
5
6
5
2
—
85
545
590
924
Corporate and Other
—
—
39
91
—
—
8
138
—
—
Total Gold
$
2,156
$
83
$
82
$
111
$
50
$
21
$
462
$
2,965
2,861
$
1,037
Gold equivalent ounces - other metals
(12)
Peñasquito
$
307
$
5
$
1
$
—
$
6
$
57
$
48
$
424
558
$
760
Other North America
—
—
—
1
—
—
—
1
—
—
North America
307
5
1
1
6
57
48
425
558
762
Boddington
65
1
1
—
—
3
17
87
71
1,216
Other Australia
—
—
—
1
—
—
—
1
—
—
Australia
65
1
1
1
—
3
17
88
71
1,231
Corporate and Other
—
—
6
16
—
—
1
23
—
—
Total Gold Equivalent Ounces
$
372
$
6
$
8
$
18
$
6
$
60
$
66
$
536
629
$
851
Consolidated
$
2,528
$
89
$
90
$
129
$
56
$
81
$
528
$
3,501
(1)
Excludes Depreciation and amortization and
Reclamation and remediation.
(2)
Includes by-product credits of $130 and
excludes co-product revenues of $825.
(3)
Includes stockpile and leach pad inventory
adjustments of $9 at CC&V and $10 at NGM.
(4)
Reclamation costs include operating
accretion and amortization of asset retirement costs of $40 and
$49, 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 $26 and $37, respectively.
(5)
Advanced projects, research and
development and exploration excludes development expenditures of $3
at CC&V, $3 at Porcupine, $2 at Éléonore, $2 at Other North
America, $4 at Yanacocha, $1 at Merian, $1 at Cerro Negro, $15 at
Other South America, $9 at Tanami, $6 at Other Australia, $5 at
Ahafo, $2 at Akyem, $8 at NGM and $4 at Corporate and Other,
totaling $65 related to developing new operations or major projects
at existing operations where these projects will materially benefit
the operation.
(6)
Care and maintenance includes $2 at Tanami
of cash care and maintenance costs associated with the site
temporarily being placed into care and maintenance or operating at
reduced levels in response to the COVID-19 pandemic, during the
period ended June 30, 2021 that we would have continued to incur if
the site were not temporarily placed into care and maintenance.
(7)
Other expense, net includes incremental
COVID-19 costs incurred as a result of actions taken to protect
against the impacts of the COVID-19 pandemic at our operational
sites of $13 for North America, $23 for South America, $1 for
Australia and $3 for Africa, totaling $40.
(8)
Other expense, net is adjusted for
impairment of long-lived and other assets of $12, settlement costs
of $11, restructuring and severance costs of $10 and distributions
from the Newmont Global Community Support Fund of $2.
(9)
Includes sustaining capital expenditures
of $147 for North America, $53 for South America, $146 for
Australia, $54 for Africa, $85 for Nevada, and $9 for Corporate and
Other, totaling $494 and excludes development capital expenditures,
capitalized interest and the change in accrued capital totaling
$320. The following are major development projects: Pamour,
Yanacocha Sulfides, Quecher Main, Cerro Negro expansion projects,
Tanami Expansion 2, Subika Mining Method Change, Ahafo North,
Goldrush Complex and Turquoise Ridge 3rd shaft.
(10)
Includes finance lease payments for
sustaining projects of $34.
(11)
Per ounce measures may not recalculate due
to rounding.
(12)
Gold equivalent ounces is calculated as
pounds or ounces produced multiplied by the ratio of the other
metals price to the gold price, using Gold ($1,200/oz.), Copper
($2.75/lb.), Silver ($22.00/oz.), Lead ($0.90/lb.) and Zinc
($1.05/lb.) pricing for 2021.
Six Months EndedJune 30, 2020
Costs Applicable to Sales
(1)(2)(3)
Reclamation Costs (4)
Advanced Projects, Research
and Development and Exploration(5)
General and
Administrative
Care and Maintenance and Other
Expense, Net(6)(7)
Treatment and Refining
Costs
Sustaining Capital and Lease
Related Costs(8)(9)
All-In Sustaining
Costs
Ounces (000) Sold
All-In Sustaining Costs Per
oz.(10)
Gold
CC&V
$
119
$
3
$
2
$
—
$
—
$
—
$
17
$
141
129
$
1,087
Red Lake
45
—
1
—
—
—
4
50
42
1,182
Musselwhite
27
1
3
—
22
—
9
62
15
4,044
Porcupine
113
2
4
—
—
—
15
134
160
837
Éléonore
74
1
3
—
26
—
17
121
80
1,506
Peñasquito
114
2
—
—
19
9
11
155
181
852
Other North America
—
—
—
8
1
—
1
10
—
—
North America
492
9
13
8
68
9
74
673
607
1,105
Yanacocha
189
29
3
—
26
—
8
255
186
1,372
Merian
153
2
3
1
—
—
17
176
231
762
Cerro Negro
72
1
1
—
38
—
16
128
103
1,234
Other South America
—
—
—
5
1
—
—
6
—
—
South America
414
32
7
6
65
—
41
565
520
1,087
Boddington
273
6
2
—
—
5
47
333
307
1,081
Tanami
127
1
4
—
—
—
39
171
245
699
Other Australia
—
—
—
6
—
—
2
8
—
—
Australia
400
7
6
6
—
5
88
512
552
927
Ahafo
165
4
1
—
2
—
36
208
202
1,030
Akyem
106
12
1
—
1
—
11
131
177
738
Other Africa
—
—
—
3
—
—
—
3
—
—
Africa
271
16
2
3
3
—
47
342
379
902
Nevada Gold Mines
503
7
10
5
6
6
90
627
657
953
Nevada
503
7
10
5
6
6
90
627
657
953
Corporate and Other
—
—
29
109
3
—
21
162
—
—
Total Gold
$
2,080
$
71
$
67
$
137
$
145
$
20
$
361
$
2,881
2,715
$
1,061
Gold equivalent ounces - other metals
(11)
Peñasquito
$
260
$
4
$
1
$
—
$
18
$
83
$
53
$
419
473
$
888
Boddington
50
1
—
—
—
3
9
63
59
1,051
Total Gold Equivalent Ounces
$
310
$
5
$
1
$
—
$
18
$
86
$
62
$
482
532
$
906
Consolidated
$
2,390
$
76
$
68
$
137
$
163
$
106
$
423
$
3,363
(1)
Excludes Depreciation and amortization and
Reclamation and remediation.
(2)
Includes by-product credits of $45 and
excludes co-product revenues of $459.
(3)
Includes stockpile and leach pad inventory
adjustments of $18 at Yanacocha and $17 at NGM.
(4)
Reclamation costs include operating
accretion and amortization of asset retirement costs of $46 and
$30, respectively, and exclude non-operating accretion and
reclamation and remediation adjustments of $26 and $6,
respectively.
(5)
Advanced projects, research and
development and exploration excludes development expenditures of $3
at CC&V, $1 at Porcupine, $1 at Peñasquito, $2 at Yanacocha, $3
at Merian, $13 at Other South America, $3 at Tanami, $6 at Other
Australia, $8 at Ahafo, $2 at Akyem, $2 at Other Africa, $8 at NGM,
and $3 at Corporate and Other, totaling $55 related to developing
new operations or major projects at existing operations where these
projects will materially benefit the operation.
(6)
Care and maintenance includes $23 at
Musselwhite, $26 at Éléonore, $38 at Peñasquito, $25 at Yanacocha,
$32 at Cerro Negro and $1 at Other South America of cash care and
maintenance costs associated with the sites temporarily being
placed into care and maintenance in response to the COVID-19
pandemic, during the period ended June 30, 2020 that we would have
continued to incur if the site were not temporarily placed into
care and maintenance.
(7)
Other expense, net is adjusted for
incremental costs of responding to the COVID-19 pandemic of $35,
Goldcorp transaction and integration costs of $23, restructuring
and other costs of $11 and impairment of long-lived assets of
$5.
(8)
Includes sustaining capital expenditures
of $101 for North America, $41 for South America, $92 for
Australia, $47 for Africa, $90 for Nevada and $21 for Corporate and
Other, totaling $392 and excludes development capital expenditures,
capitalized interest and the increase in accrued capital totaling
$216. The following are major development projects: Musselwhite
Materials Handling, Éléonore Lower Mine Material Handling System,
Quecher Main, Yanacocha Sulfides, Tanami Expansion 2, Subika Mining
Method Change, Ahafo North, Goldrush Complex, Turquoise Ridge 3rd
shaft and Range Front Declines at Cortez.
(9)
Includes finance lease payments for
sustaining projects of $31.
(10)
Per ounce measures may not recalculate due
to rounding.
(11)
Gold equivalent ounces is calculated as
pounds or ounces produced multiplied by the ratio of the other
metals price to the gold price, using Gold ($1,200/oz.), Copper
($2.75/lb.), Silver ($16.00/oz.), Lead ($0.95/lb.) and Zinc
($1.20/lb.) pricing for 2020.
A reconciliation of the 2021 Gold AISC outlook to the 2021 Gold
CAS outlook, 2021 Co-product AISC outlook to the 2021 Co-product
CAS outlook are provided below. The estimates in the table below
are considered “forward-looking statements” within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section
21E of the Securities Exchange Act of 1934, as amended, which are
intended to be covered by the safe harbor created by such sections
and other applicable laws.
2021 Outlook - Gold (7)(8)
(in millions, except ounces and per
ounce)
Outlook Estimate
Cost Applicable to Sales (1)(2)
$
4,750
Reclamation Costs (3)
150
Advanced Projects & Exploration
(4)
150
General and Administrative (5)
230
Other Expense
20
Treatment and Refining Costs
50
Sustaining Capital (6)
870
Sustaining Finance Lease Payments
30
All-in Sustaining Costs
$
6,250
Ounces (000) Sold (9)
6,400
All-in Sustaining Costs per Oz
$
970
(1)
Excludes Depreciation and amortization and
Reclamation and remediation.
(2)
Includes stockpile and leach pad inventory
adjustments.
(3)
Reclamation costs include operating
accretion and amortization of asset retirement costs.
(4)
Advanced Project and Exploration excludes
non-sustaining advanced projects and exploration.
(5)
Includes stock based compensation.
(6)
Excludes development capital expenditures,
capitalized interest and change in accrued capital.
(7)
The reconciliation is provided for
illustrative purposes in order to better describe management’s
estimates of the components of the calculation. Estimates for each
component of the forward-looking All-in sustaining costs per ounce
are independently calculated and, as a result, the total All-in
sustaining costs and the All-in sustaining costs per ounce may not
sum to the component ranges. While a reconciliation to the most
directly comparable GAAP measure has been provided for 2021 AISC
Gold and Co-Product Outlook on a consolidated basis, a
reconciliation has not been provided on an individual site or
project basis in reliance on Item 10(e)(1)(i)(B) of Regulation S-K
because such reconciliation is not available without unreasonable
efforts.
(8)
All values are presented on a consolidated
basis for Newmont.
(9)
Consolidated production for Yanacocha and
Merian is presented on a total production basis for the mine site
and excludes production from Pueblo Viejo.
2021 Outlook - Co-Product (7)(8)
(in millions, except GEO and per
GEO)
Outlook Estimate
Cost Applicable to Sales (1)(2)
$
790
Reclamation Costs (3)
10
Advanced Projects & Exploration
(4)
10
General and Administrative (5)
30
Other Expense
—
Treatment and Refining Costs
160
Sustaining Capital (6)
130
Sustaining Finance Lease Payments
20
All-in Sustaining Costs
$
1,150
Co-Product GEO (000) Sold (9)
1,300
All-in Sustaining Costs per Co Product
GEO
$
880
(1)
Excludes Depreciation and amortization and
Reclamation and remediation.
(2)
Includes stockpile and leach pad inventory
adjustments.
(3)
Reclamation costs include operating
accretion and amortization of asset retirement costs.
(4)
Advanced Project and Exploration excludes
non-sustaining advanced projects and exploration.
(5)
Includes stock based compensation.
(6)
Excludes development capital expenditures,
capitalized interest and change in accrued capital.
(7)
The reconciliation is provided for
illustrative purposes in order to better describe management’s
estimates of the components of the calculation. Estimates for each
component of the forward-looking All-in sustaining costs per ounce
are independently calculated and, as a result, the total All-in
sustaining costs and the All-in sustaining costs per ounce may not
sum to the component ranges. While a reconciliation to the most
directly comparable GAAP measure has been provided for 2021 AISC
Gold and Co-Product Outlook on a consolidated basis, a
reconciliation has not been provided on an individual site or
project basis in reliance on Item 10(e)(1)(i)(B) of Regulation S-K
because such reconciliation is not available without unreasonable
efforts.
(8)
All values are presented on a consolidated
basis for Newmont.
(9)
Co-Product GEO are all non-gold
co-products (Peñasquito silver, zinc, lead, Boddington copper).
Net debt to Adjusted EBITDA ratio
Management uses net debt to Adjusted EBITDA as non-GAAP measures
to evaluate the Company’s operating performance, including our
ability to generate earnings sufficient to service our debt. Net
debt to Adjusted EBITDA represents the ratio of the Company’s debt,
net of cash and cash equivalents, to Adjusted EBITDA. Net debt to
Adjusted EBITDA does not represent, and should not be considered an
alternative to, net income (loss), operating income (loss), or cash
flow from operations as those terms are defined by GAAP, and does
not necessarily indicate whether cash flows will be sufficient to
fund cash needs. Although Net Debt to Adjusted EBITDA and similar
measures are frequently used as measures of operations and the
ability to meet debt service requirements by other companies, our
calculation of net debt to Adjusted EBITDA measure is not
necessarily comparable to such other similarly titled captions of
other companies. The Company believes that net debt to Adjusted
EBITDA provides useful information to investors and others in
understanding and evaluating our operating results in the same
manner as our management and Board of Directors. Management’s
determination of the components of net debt to Adjusted EBITDA is
evaluated periodically and based, in part, on a review of non-GAAP
financial measures used by mining industry analysts. Net income
(loss) attributable to Newmont stockholders is reconciled to
Adjusted EBITDA as follows:
Three Months Ended
June 30, 2021
March 31, 2021
December 31, 2020
September 30, 2020
Net income (loss) attributable to Newmont
stockholders
$
650
$
559
$
824
$
839
Net income (loss) attributable to
noncontrolling interests
11
20
(60
)
17
Net loss (income) from discontinued
operations
(10
)
(21
)
(18
)
(228
)
Equity loss (income) of affiliates
(49
)
50
(70
)
(53
)
Income and mining tax expense
(benefit)
341
235
258
305
Depreciation and amortization
561
553
615
592
Interest expense, net of capitalized
interest
68
74
73
75
EBITDA
1,572
1,370
1,622
1,547
EBITDA Adjustments:
Change in fair value of investments
(26
)
110
(61
)
(57
)
Reclamation and remediation charges
20
10
213
—
Impairment of long-lived and other
assets
11
1
20
24
Settlement costs
8
3
24
26
Restructuring and severance
5
5
6
9
COVID-19 specific costs
1
1
25
32
Loss (gain) on asset and investment
sales
—
(43
)
(84
)
(1
)
Pension settlements
—
—
7
83
Adjusted EBITDA
1,591
1,457
1,772
1,663
12 month trailing Adjusted
EBITDA
$
6,483
Total Debt
$
5,480
Lease and other financing obligations
677
Less: Cash and cash equivalents
4,583
Total net debt
$
1,574
Net debt to adjusted EBITDA
0.2
Net average realized price per ounce/
pound
Average realized price per ounce/ pound are non-GAAP financial
measures. The measures are calculated by dividing the net
consolidated gold, copper, silver, lead and zinc sales by the
consolidated gold ounces, copper pounds, silver ounces, lead pounds
and zinc pounds sold, respectively. These measures are calculated
on a consistent basis for the periods presented on a consolidated
basis. Average realized price per ounce/ pound statistics are
intended to provide additional information only, do not have any
standardized meaning prescribed by GAAP and should not be
considered in isolation or as a substitute for measures of
performance prepared in accordance with GAAP. The measures are not
necessarily indicative of operating profit or cash flow from
operations as determined under GAAP. Other companies may calculate
these measures differently.
The following tables reconcile these non-GAAP measures to the
most directly comparable GAAP measure:
Three Months Ended June
30,
Six Months Ended June
30,
2021
2020
2021
2020
Consolidated gold sales, net
$
2,630
$
2,166
$
5,112
$
4,487
Consolidated copper sales, net
80
37
132
58
Consolidated silver sales, net
175
76
343
199
Consolidated lead sales, net
43
23
87
62
Consolidated zinc sales, net
137
63
263
140
Total sales
$
3,065
$
2,365
$
5,937
$
4,946
Three Months Ended June 30,
2021
Gold
Copper
Silver
Lead
Zinc
(ounces)
(pounds)
(ounces)
(pounds)
(pounds)
Consolidated sales:
Gross before provisional pricing and
streaming impact
$
2,625
$
81
$
160
$
41
$
135
Provisional pricing mark-to-market
13
1
9
2
4
Silver streaming amortization
—
—
18
—
—
Gross after provisional pricing and
streaming impact
2,638
82
187
43
139
Treatment and refining charges
(8
)
(2
)
(12
)
—
(2
)
Net
$
2,630
$
80
$
175
$
43
$
137
Consolidated ounces (thousands)/pounds
(millions) sold
1,444
19
7,615
42
102
Average realized price (per
ounce/pound)(1):
Gross before provisional pricing and
streaming impact
$
1,819
$
4.40
$
20.94
$
0.97
$
1.33
Provisional pricing mark-to-market
9
0.07
1.15
0.07
0.03
Silver streaming amortization
—
—
2.44
—
—
Gross after provisional pricing and
streaming impact
1,828
4.47
24.53
1.04
1.36
Treatment and refining charges
(5
)
(0.10
)
(1.53
)
(0.02
)
(0.02
)
Net
$
1,823
$
4.37
$
23.00
$
1.02
$
1.34
Six Months Ended June 30,
2021
Gold
Copper
Silver
Lead
Zinc
(ounces)
(pounds)
(ounces)
(pounds)
(pounds)
Consolidated sales:
Gross before provisional pricing and
streaming impact
$
5,148
$
129
$
323
$
100
$
286
Provisional pricing mark-to-market
(15
)
6
9
(11
)
4
Silver streaming amortization
—
—
39
—
—
Gross after provisional pricing and
streaming impact
5,133
135
371
89
290
Treatment and refining charges
(21
)
(3
)
(28
)
(2
)
(27
)
Net
$
5,112
$
132
$
343
$
87
$
263
Consolidated ounces (thousands)/pounds
(millions) sold
2,861
31
16,146
92
221
Average realized price (per
ounce/pound)(1):
Gross before provisional pricing and
streaming impact
$
1,800
$
4.21
$
19.99
$
1.08
$
1.29
Provisional pricing mark-to-market
(5
)
0.19
0.57
(0.11
)
0.02
Silver streaming amortization
—
—
2.44
—
—
Gross after provisional pricing and
streaming impact
1,795
4.40
23.00
0.97
1.31
Treatment and refining charges
(7
)
(0.10
)
(1.73
)
(0.02
)
(0.12
)
Net
$
1,788
$
4.30
$
21.27
$
0.95
$
1.19
(1)
Per ounce/pound measures may not
recalculate due to rounding.
Three Months Ended June 30,
2020
Gold
Copper
Silver
Lead
Zinc
(ounces)
(pounds)
(ounces)
(pounds)
(pounds)
Consolidated sales:
Gross before provisional pricing and
streaming impact
$
2,162
$
32
$
66
$
23
$
80
Provisional pricing mark-to-market
17
6
15
—
4
Silver streaming amortization
—
—
11
—
—
Gross after provisional pricing and
streaming impact
2,179
38
92
23
84
Treatment and refining charges
(13
)
(1
)
(16
)
—
(21
)
Net
$
2,166
$
37
$
76
$
23
$
63
Consolidated ounces (thousands)/pounds
(millions) sold
1,255
13
5,211
31
91
Average realized price (per
ounce/pound)(1):
Gross before provisional pricing and
streaming impact
$
1,721
$
2.57
$
12.59
$
0.77
$
0.88
Provisional pricing mark-to-market
14
0.45
2.72
(0.02
)
0.05
Silver streaming amortization
—
—
2.25
—
—
Gross after provisional pricing and
streaming impact
1,735
3.02
17.56
0.75
0.93
Treatment and refining charges
(11
)
(0.11
)
(2.86
)
—
(0.23
)
Net
$
1,724
$
2.91
$
14.70
$
0.75
$
0.70
Six Months Ended June 30,
2020
Gold
Copper
Silver
Lead
Zinc
(ounces)
(pounds)
(ounces)
(pounds)
(pounds)
Consolidated sales:
Gross before provisional pricing and
streaming impact
$
4,478
$
66
$
184
$
73
$
200
Provisional pricing mark-to-market
29
(5
)
6
(2
)
(9
)
Silver streaming amortization
—
—
32
—
—
Gross after provisional pricing and
streaming impact
4,507
61
222
71
191
Treatment and refining charges
(20
)
(3
)
(23
)
(9
)
(51
)
Net
$
4,487
$
58
$
199
$
62
$
140
Consolidated ounces (thousands)/pounds
(millions) sold
2,715
26
13,889
91
215
Average realized price (per
ounce/pound)(1):
Gross before provisional pricing and
streaming impact
$
1,649
$
2.52
$
13.22
$
0.80
$
0.93
Provisional pricing mark-to-market
11
(0.20
)
0.40
(0.02
)
(0.04
)
Silver streaming amortization
—
—
2.34
—
—
Gross after provisional pricing and
streaming impact
1,660
2.32
15.96
0.78
0.89
Treatment and refining charges
(8
)
(0.11
)
(1.61
)
(0.10
)
(0.24
)
Net
$
1,652
$
2.21
$
14.35
$
0.68
$
0.65
(1)
Per ounce/pound measures may not
recalculate due to rounding.
Gold by-product metrics
Copper, sliver, lead and zinc are by-products often obtained
during the process of extracting and processing the primary
ore-body. In our GAAP Consolidated Financial Statements, the value
of these by-products is recorded as a credit to our CAS and the
value of the primary ore is recorded as Sales. In certain
instances, copper, silver, lead and zinc are co-products, or a
significant resource in the primary ore-body, and the revenue is
recorded as Sales in our GAAP Consolidated Financial
Statements.
Gold by-product metrics are non-GAAP financial measures that
serve as a basis for comparing the Company’s performance with
certain competitors. As Newmont’s operations are primarily focused
on gold production, “Gold by-product metrics” were developed to
allow investors to view Sales, CAS per ounce and AISC per ounce
calculations that classify all copper, silver, lead and zinc
production as a by-product, even when copper, silver, lead or zinc
is a significant resource in the primary ore-body. These metrics
are calculated by subtracting copper, silver, lead and zinc sales
recognized from Sales and including these amounts as offsets to
CAS.
Gold by-product metrics are calculated on a consistent basis for
the periods presented on a consolidated basis. These metrics are
intended to provide supplemental information only, do not have any
standardized meaning prescribed by GAAP and should not be
considered in isolation or as a substitute for measures of
performance prepared in accordance with GAAP. Other companies may
calculate these measures differently as a result of differences in
the underlying accounting principles, policies applied and in
accounting frameworks, such as in IFRS.
The following tables reconcile these non-GAAP measures to the
most directly comparable GAAP measures:
Three Months Ended June
30,
Six Months Ended June
30,
2021
2020
2021
2020
Consolidated gold sales, net
$
2,630
$
2,166
$
5,112
$
4,487
Consolidated other metal sales, net
435
199
825
459
Sales
$
3,065
$
2,365
$
5,937
$
4,946
Costs applicable to sales
$
1,281
$
1,058
$
2,528
$
2,390
Less: Consolidated other metal sales,
net
(435
)
(199
)
(825
)
(459
)
By-Product costs applicable to sales
$
846
$
859
$
1,703
$
1,931
Gold sold (thousand ounces)
1,444
1,255
2,861
2,715
Total Gold CAS per ounce (by-product)
(1)
$
586
$
684
$
595
$
711
Total AISC
$
1,761
$
1,585
$
3,501
$
3,363
Less: Consolidated other metal sales,
net
(435
)
(199
)
(825
)
(459
)
By-Product AISC
$
1,326
$
1,386
$
2,676
$
2,904
Gold sold (thousand ounces)
1,444
1,255
2,861
2,715
Total Gold AISC per ounce (by-product)
(1)
$
918
$
1,104
$
935
$
1,070
(1)
Per ounce measures may not recalculate due
to rounding.
Conference Call Information
A conference call will be held on Thursday, July 22, 2021
at 10:00 a.m. Eastern Time (8:00 a.m. Mountain Time); it
will also be carried on the Company’s website.
Conference Call
Details
Dial-In Number
855.209.8210
Intl Dial-In Number
412.317.5213
Conference Name
Newmont
Replay Number
877.344.7529
Intl Replay Number
412.317.0088
Replay Access Code
10157953
Webcast Details
Title: Newmont Second Quarter 2021
Earnings Conference Call
URL:
https://event.on24.com/wcc/r/3291425/7D095AB1A0B715B54296D7C5BE3FE196
The second quarter 2021 results will be available before the
market opens on Thursday, July 22, 2021, on the “Investor
Relations” section of the Company’s website, www.newmont.com. Additionally, the conference call
will be archived for a limited time on the Company’s website.
About Newmont
Newmont is the world’s leading gold company and a producer of
copper, silver, zinc and lead. The Company’s world-class portfolio
of assets, prospects and talent is anchored in favorable mining
jurisdictions in North America, South America, Australia and
Africa. Newmont is the only gold producer listed in the S&P 500
Index and is widely recognized for its principled environmental,
social and governance practices. The Company is an industry leader
in value creation, supported by robust safety standards, superior
execution and technical expertise. Newmont was founded in 1921 and
has been publicly traded since 1925.
Cautionary Statement Regarding Forward
Looking Statements, Including Outlook:
This news release contains “forward-looking statements” within
the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended, which are intended to be covered by the safe harbor
created by such sections and other applicable laws. Where a
forward-looking statement expresses or implies an expectation or
belief as to future events or results, such expectation or belief
is expressed in good faith and believed to have a reasonable basis.
However, such statements are subject to risks, uncertainties and
other factors, which could cause actual results to differ
materially from future results expressed, projected or implied by
the forward-looking statements. Forward-looking statements often
address our expected future business and financial performance and
financial condition; and often contain words such as “anticipate,”
“intend,” “plan,” “will,” “would,” “estimate,” “expect,” “believe,”
“target,” “indicative,” “preliminary,” or “potential.”
Forward-looking statements in this news release may include,
without limitation, (i) estimates of future production and sales,
including production outlook, average future production, upside
potential and indicative production profiles; (ii) estimates of
future costs applicable to sales and all-in sustaining costs; (iii)
estimates of future capital expenditures, including development and
sustaining capital; (iv) estimates of future cost reductions, full
potential savings, value creation, improvements, synergies and
efficiencies; (v) expectations regarding the Tanami Expansion 2,
Ahafo North and Yanacocha Sulfides projects, as well as the
development, growth and exploration potential of the Company’s
other operations, projects and investments, including, without
limitation, returns, IRR, schedule, approval and decision dates,
mine life and mine life extensions, commercial start, first
production, average production, average costs, impacts of
improvement or expansion projects and upside potential; (vi)
expectations regarding future investments or divestitures; (vii)
expectations regarding free cash flow, and returns to stockholders,
including with respect to future dividends and future share
repurchases; (viii) expectations regarding future mineralization,
including, without limitation, expectations regarding reserves and
recoveries; (ix) estimates of future closure costs and liabilities;
(x) expectations regarding the timing and/or likelihood of future
borrowing, future debt repayment, financial flexibility and cash
flow; and (xi) expectations regarding the impact of the Covid-19
pandemic and vaccine. Estimates or expectations of future events or
results are based upon certain assumptions, which may prove to be
incorrect. Such assumptions, include, but are not limited to: (i)
there being no significant change to current geotechnical,
metallurgical, hydrological and other physical conditions; (ii)
permitting, development, operations and expansion of operations and
projects being consistent with current expectations and mine plans,
including, without limitation, receipt of export approvals; (iii)
political developments in any jurisdiction in which the Company
operates being consistent with its current expectations; (iv)
certain exchange rate assumptions being approximately consistent
with current levels; (v) certain price assumptions for gold,
copper, silver, zinc, lead and oil; (vi) prices for key supplies
being approximately consistent with current levels; (vii) the
accuracy of current mineral reserve and mineralized material
estimates; and (viii) other planning assumptions. Uncertainties
relating to the impacts of Covid-19, include, without limitation,
general macroeconomic uncertainty and changing market conditions,
changing restrictions on the mining industry in the jurisdictions
in which we operate, the ability to operate following changing
governmental restrictions on travel and operations (including,
without limitation, the duration of restrictions, including access
to sites, ability to transport and ship doré, access to processing
and refinery facilities, impacts to international trade, impacts to
supply chain, including price, availability of goods, ability to
receive supplies and fuel, impacts to productivity and operations
in connection with decisions intended to protect the health and
safety of the workforce, their families and neighboring
communities), the impact of additional waves or variations of
Covid, and the availability and impact of Covid vaccinations in the
areas and countries in which we operate. Investors are reminded
that only the second quarter has been declared by the Board of
Directors at this time. Future dividends for 2021 have not yet been
approved or declared by the Board of Directors, and an annualized
dividend payout or dividend yield has not been declared by the
Board. Management’s expectations with respect to future dividends
are “forward-looking statements” and the Company’s dividend
framework is non-binding. The declaration and payment of future
dividends remain at the discretion of the Board of Directors and
will be determined based on Newmont’s financial results, balance
sheet strength, cash and liquidity requirements, future prospects,
gold and commodity prices, and other factors deemed relevant by the
Board. Investors are also cautioned that the extent to which the
Company repurchases its shares, and the timing of such repurchases,
will depend upon a variety of factors, including trading volume,
market conditions, legal requirements, business conditions and
other factors. The repurchase program may be discontinued at any
time, and the program does not obligate the Company to acquire any
specific number of shares of its common stock or to repurchase the
full authorized amount during the authorization period.
Consequently, the Board of Directors may revise or terminate such
share repurchase authorization in the future. For a more detailed
discussion of risks and other factors that might impact future
looking statements, see the Company’s Annual Report on Form 10-K
for the year ended December 31, 2020 filed with the U.S. Securities
and Exchange Commission (the “SEC”), under the heading “Risk
Factors", filed with the SEC, available on the SEC website or
www.newmont.com. The Company does not undertake any obligation to
release publicly revisions to any “forward-looking statement,”
including, without limitation, outlook, to reflect events or
circumstances after the date of this news release, or to reflect
the occurrence of unanticipated events, except as may be required
under applicable securities laws. Investors should not assume that
any lack of update to a previously issued “forward-looking
statement” constitutes a reaffirmation of that statement. Continued
reliance on “forward-looking statements” is at investors’ own
risk.
Notice for U.S.
Investors:
The terms “resources” and “Measured, Indicated and Inferred
resources” are used in this news release. Investors are advised
that the SEC does not recognize these terms and “resources” have
not been prepared in accordance with Industry Guide 7. Newmont has
determined that such “resources” would be substantively the same as
those prepared using the Guidelines established by the Society of
Mining, Metallurgy and Exploration (SME) and defined as “Mineral
Resource”. Estimates of resources are subject to further
exploration and development, are subject to additional risks, and
no assurance can be given that they will eventually convert to
future reserves. Inferred Resources, in particular, have a great
amount of uncertainty as to their existence and their economic and
legal feasibility. Investors are cautioned not to assume that any
part or all of the Inferred Resource exists, or is economically or
legally mineable. Investors are reminded that even if significant
mineralization is discovered and converted to reserves, during the
time necessary to ultimately move such mineralization to production
the economic feasibility of production may change. US investors are
encouraged to refer to the “Proven and Probable Reserve” tables
contained herein for reserves prepared in compliance with the SEC’s
Industry Guide 7 and “Mineralized Material” tables, available at
www.newmont.com and included in the Company’s Form 10-K, filed on
February 18, 2021, on www.sec.gov. Additional information on the
Company’s resource estimates can be found at
www.newmont.com/operations-and-projects/reserves-and-resources.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210722005299/en/
Media Contact Courtney Boone
303.837.5159 courtney.boone@newmont.com
Investor Contact Eric Colby
303.837.5724 eric.colby@newmont.com
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