Newmont delivers solid second quarter production and free
cash flow results from leading portfolio of long-life, responsibly
managed assets; updates full-year guidance
Newmont Corporation (NYSE: NEM, TSX: NGT) (Newmont or the
Company) today announced second quarter 2022 results.
SECOND QUARTER 2022 RESULTS
- Produced 1.5 million attributable ounces of gold and 330
thousand attributable gold equivalent ounces (GEO) from
co-products, an increase of more than 130 thousand total gold
equivalent ounces from the first quarter
- Generated $1.0 billion of cash from continuing operations and
$514 million of Free Cash Flow (97 percent attributable to
Newmont)*
- Reported gold Costs Applicable to Sales (CAS)* of $932 per
ounce and All-In Sustaining Costs (AISC)* of $1,199 per ounce
- Adjusted Net Income (ANI) of $0.46 per share and Adjusted
EBITDA of $1,149, impacted by increasing costs and declining metal
prices
- Updated full-year guidance of 6.0 million ounces of
attributable gold production, CAS of $900 per ounce and AISC of
$1,150 per ounce; reaffirmed original guidance of 1.3 million gold
equivalent ounces from copper, silver, lead and zinc with updated
co-product cost guidance of $750 per GEO of CAS and $1,050 per GEO
of AISC**
- Updated full-year guidance for development capital spend to
$1.1 billion; Provided trends on development capital costs and
timeline related to Tanami Expansion 2 and Ahafo North
- Declared second quarter dividend of $0.55 per share, consistent
with the previous seven quarters***
- $1 billion share repurchase program to be used
opportunistically in 2022, with $475 million remaining***
- Ended the quarter with $4.3 billion of consolidated cash and
$7.3 billion of liquidity with a net debt to adjusted EBITDA ratio
of 0.3x*
- Advancing profitable near-term projects, including Tanami
Expansion 2, Ahafo North and Yanacocha Sulfides
- Completed acquisition of Sumitomo Corporation's 5 percent
interest in Yanacocha, increasing ownership in Sulfides project to
100 percent
- Maintained a clear focus on managing the critical controls that
must be in place at all times to prevent fatalities; 155 thousand
critical control verifications completed by leaders in the
field
- Published our 2021 Sustainability Reporting Suite, including
our second Annual Climate Report, prepared in accordance with the
Task Force for Climate Disclosure (TCFD) framework, detailing the
pathway to achieve 2030 carbon emissions reduction targets and 2050
goal
"Newmont delivered a solid second quarter performance, producing
1.5 million gold ounces and generating $514 million in free cash
flow. Through our industry-leading portfolio of assets and
projects, our proven integrated operating model, our balanced and
disciplined approach to capital allocation and our values-driven
commitment to our purpose of creating value and improving lives
through sustainable and responsible mining, Newmont remains
well-positioned to safely manage through the evolving and
unprecedented challenges that face our industry and the world at
large."
- Tom Palmer, Newmont President and Chief Executive
Officer
___________________________
*
Non-GAAP metrics; see reconciliations at
the end of this release.
**
See discussion of outlook and cautionary
statement at end of release regarding forward-looking
statements.
***
See cautionary statement at the end of
this release, including with respect to future dividends and share
buybacks.
SECOND QUARTER 2022 FINANCIAL AND PRODUCTION SUMMARY
Q2'22
Q1'22
Q2'21
Average realized gold price ($ per
ounce)
$
1,836
$
1,892
$
1,823
Attributable gold production (million
ounces)
1.50
1.34
1.45
Gold costs applicable to sales (CAS) ($
per ounce)
$
932
$
890
$
755
Gold all-in sustaining costs (AISC) ($ per
ounce)
$
1,199
$
1,156
$
1,035
GAAP net income from continuing operations
($ millions)
$
379
$
432
$
640
Adjusted net income ($ millions)
$
362
$
546
$
670
Adjusted EBITDA ($ millions)
$
1,149
$
1,390
$
1,591
Cash flow from continuing operations ($
millions)
$
1,033
$
689
$
993
Capital expenditures ($ millions)
$
519
$
437
$
415
Free cash flow ($ millions)
$
514
$
252
$
578
Attributable gold production1 increased 3 percent to
1,495 thousand ounces from the prior year quarter primarily due to
higher ore grade milled at Boddington, Ahafo and Tanami and a
draw-down of in-circuit inventory compared to a build in the prior
year. In addition, the current quarter benefited from the increased
ownership at Yanacocha due to the acquisition of Buenaventura's
43.65% ownership in February 2022. These increases were partially
offset by lower ore grade milled and lower throughput at Peñasquito
and Éléonore.
Gold CAS totaled $1.4 billion for the quarter. Gold
CAS per ounce2 increased 23 percent to $932 per ounce from the
prior year quarter primarily due to higher direct operating costs
as a result of inflationary pressures, driven by higher labor costs
and an increase in commodity inputs, including higher fuel and
energy costs; as well as lower by-product credits at Yanacocha and
a draw-down of higher cost in-circuit inventory compared to a build
in the prior year. In addition, Gold CAS includes the allocation of
$22 million for the Peñasquito profit-sharing agreement entered
into during the second quarter of 2022 related to 2021 results.
Gold AISC per ounce3 increased 16 percent to $1,199 per
ounce from the prior year quarter primarily due to higher CAS per
ounce.
Attributable gold equivalent ounce (GEO) production from
other metals increased 9 percent to 330 thousand ounces
primarily due to higher ore grade milled at Boddington and higher
mill recovery and throughput at Peñasquito.
CAS from other metals totaled $327 million for the
quarter. CAS per GEO2 increased 56 percent to $983 per ounce
from the prior year quarter primarily due to higher allocation of
costs to other metals and higher direct operating costs as a result
of inflationary pressures, driven by higher labor costs and an
increase in commodity inputs, including higher fuel and energy
costs. In addition, CAS from other metals includes the allocation
of $48 million related to the Peñasquito profit-sharing agreement
entered into during the second quarter of 2022 related to 2021
results.
AISC per GEO3 increased 45 percent to $1,286 per ounce
primarily due to higher CAS per GEO and higher treatment and
refining costs.
Average realized price for gold was $1,836, an increase
of $13 per ounce over the prior year quarter. Average realized gold
price includes $1,858 per ounce of gross price received, an
unfavorable impact of $14 per ounce mark-to-market on
provisionally-priced sales and reductions of $8 per ounce for
treatment and refining charges.
Revenue remained flat at $3.1 billion compared to the
prior year quarter as higher average realized gold prices and
higher gold sales volumes were offset by lower average realized
co-product metal prices.
Net income from continuing operations attributable to
Newmont stockholders was $379 million or $0.48 per diluted share, a
decrease of $261 million from the prior year quarter primarily due
to higher CAS predominately resulting from the impacts of inflation
and the Peñasquito profit-sharing agreement entered into during the
second quarter of 2022, as well as unrealized losses on marketable
and other equity securities. These decreases were partially offset
by lower income tax expense.
Adjusted net income4 was $362 million or $0.46 per
diluted share, compared to $670 million or $0.83 per diluted share
in the prior year quarter. Primary adjustments to second quarter
net income include changes in the fair value of investments and
valuation allowance and other tax adjustments, including an $125
million tax settlement in Mexico.
Adjusted EBITDA5 decreased 28 percent to $1.1 billion for
the quarter, compared to $1.6 billion for the prior year
quarter.
Capital expenditures6 increased 25 percent from the prior
year quarter to $519 million primarily due to higher development
capital spend. Development capital expenditures in 2022 primarily
include advancing Tanami Expansion 2, Yanacocha Sulfides, Ahafo
North, Pamour and Cerro Negro District Expansion 1.
Consolidated operating cash flow from continuing
operations increased 4 percent from the prior year quarter to
$1.0 billion primarily due to a decrease in accounts receivable and
increase in accounts payable due to the timing of receipts and
payments to vendors, respectively, and a decrease in tax payments.
These increases were partially offset by an increase in payments
for reclamation and remediation obligations. Free Cash Flow7
decreased to $514 million from $578 million in the prior year
quarter primarily due to higher development capital expenditures,
partially offset by higher operating cash flow.
Balance sheet and liquidity ended the quarter with $4.3
billion of consolidated cash and approximately $7.3 billion of
liquidity; reported net debt to adjusted EBITDA of 0.3x8.
Nevada Gold Mines (NGM) attributable gold production was
290 thousand ounces, with CAS of $1,035 per ounce and AISC of
$1,263 per ounce for the second quarter. NGM EBITDA9 was $218
million.
Pueblo Viejo (PV) attributable gold production was 70
thousand ounces for the quarter. Cash distributions received for
the Company's equity method investment in Pueblo Viejo totaled $48
million in the second quarter.
SECOND QUARTER 2022 EARNINGS DRIVERS
Compared to the first quarter of 2022, earnings were negatively
impacted by higher labor, materials and consumables costs of
approximately $80 million, higher fuel and energy costs of
approximately $50 million and the $70 million expense recognized in
the second quarter related to the Peñasquito profit-sharing
agreement announced in early July. In addition, lower realized
metals prices, including unfavorable mark-to-market adjustments on
provisionally-priced sales, impacted earnings by approximately $225
million compared to the first quarter. These impacts were partially
offset by approximately $250 million of higher sales volumes in the
second quarter.
COVID 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 $10 million during the quarter for activities
such as additional health and safety procedures, increased
transportation and distributions from the Newmont Global Community
Support Fund. The majority of the additional incremental Covid
specific costs have not been adjusted from our non-GAAP
metrics.
PROJECTS UPDATE10
Newmont’s project pipeline supports stable production with
improving margins and mine life. Newmont's 2022 and longer-term
outlook includes current development capital costs and production
related to Tanami Expansion 2, Ahafo North, Yanacocha Sulfides,
Pamour and Cerro Negro District Expansion 1. Additional projects
not listed below represent incremental improvements to the
Company's outlook.
- Tanami Expansion 2 (Australia)
secures Tanami’s future as a long-life, low-cost producer to extend
mine life beyond 2040 through the addition of a 1,460 meter
hoisting shaft and supporting infrastructure to process 3.3 million
tonnes per year and provide a platform for future growth. The
expansion is expected to increase average annual gold production by
approximately 150,000 to 200,000 ounces per year for the first five
years and reduce operating costs by approximately 10 percent.
Development costs (excluding capitalized interest) since approval
were $395 million, of which $111 million related to the six months
ended June 30, 2022. Total capital costs are expected to be
approximately 25% above the prior estimate, incorporating the
significant impacts from Covid-related restrictions and protocols
and the current market conditions for labor and materials.
Commercial production for the project is now expected to be in
early 2025. Formal updates to capital estimates and estimated
project completion will be provided later in the year.
- 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 for the first five full
years of production. 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, Indicated and Inferred
Resources and significant upside potential to extend beyond Ahafo
North’s current 13-year mine life. Development costs (excluding
capitalized interest) since approval were $142 million, of which
$75 million related to the six months ended June 30, 2022. Total
capital costs are expected to be approximately 15% above the prior
estimate, incorporating the cost associated with delayed land
access. Commercial production for the project is now expected to be
in mid-2025. Formal updates to capital estimates and estimated
project completion will be provided later in the year.
- Yanacocha Sulfides (South America)
will develop the first phase of sulfide deposits and an integrated
processing circuit, including an autoclave to produce 45% gold, 45%
copper and 10% silver. The project is expected to add average
annual production of 525,000 gold equivalent ounces per year for
the first five full years (2027-2031). Total capital costs for the
project are estimated at $2.5 billion from the investment decision
date, expected in late 2022, with a three year development period.
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.
- Pamour (North America) extends the
life of Porcupine and maintains production beginning in 2024. The
project will optimize mill capacity, adding volume and supporting
high grade ore from Borden and Hoyle Pond, while supporting further
exploration in a highly prospective and proven mining district. An
investment decision is expected in the second half of 2022 with
estimated capital costs between $350 and $450 million.
- Cerro Negro District Expansion 1
(South America) includes the simultaneous development of the
Marianas and Eastern districts to extend the mine life of Cerro
Negro beyond 2030. The project is expected to improve production to
above 350,000 ounces beginning in 2024. Development capital costs
for the project are estimated to be approximately $300 million.
This project provides a platform for further exploration and future
growth through additional expansions.
________________________________________________
1
Attributable gold production for the
second quarter 2022 includes 70 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
Capital expenditures refers to Additions
to property plant and mine development from the Condensed
Consolidated Statements of Cash Flows.
7
Non-GAAP measure. See end of this release
for reconciliation to Net cash provided by operating
activities.
8
Non-GAAP measure. See end of this release
for reconciliation.
9
Non-GAAP measure. See end of this release
for reconciliation.
10
Project estimates remain subject to change
based upon uncertainties, including future impacts of Covid-19 and
other cost pressures, supply chain disruptions and availabilities,
commodity price volatility and other factors, which may impact
estimated capital expenditures, AISC and timing of projects. See
end of this release for cautionary statement regarding
forward-looking statements.
UPDATED OUTLOOK
Newmont is providing updated 2022 outlook due to impacts on gold
production estimates in the first half of the year, as well as the
continued impact from inflationary pressures on costs. Please see
the cautionary statement in the end notes for additional
information. For further discussion, investors are encouraged to
attend Newmont’s Second Quarter 2022 Earnings Conference Call.
Newmont's updated 2022 outlook includes 6.0 million ounces of
attributable gold production and 1.3 million gold equivalent ounces
from copper, silver, lead and zinc. The revised outlook for
attributable gold production includes negative impacts from
operational challenges at Ahafo, a transition to a leach-only
operation at CC&V, as well as challenges from a competitive
labor market, primarily in Canada and Australia.
Ahafo experienced challenges due to labor availability and
supply chain disruptions impacting the delivery of new equipment
and critical spares, which affected our ability to ramp-up mining
rates at Subika Underground. As a result, Ahafo's full-year
production was reduced by approximately 80 thousand ounces. The
CC&V operation has begun the transition to a higher-value,
longer-life leach-only operation, resulting in a reduction in
full-year production of approximately 40 thousand ounces. In
addition, Newmont continues to experience lower productivity as a
result of a competitive labor market in Canada in Australia,
resulting in full-year production impacts of approximately 50
thousand ounces and 30 thousand ounces in those regions,
respectively.
Updated 2022 CAS outlook is expected to be $900 per gold ounce
and $750 per co-product gold equivalent ounce. Updated 2022 AISC
outlook is expected to be $1,150 per gold ounce and $1,050 per
co-product gold equivalent ounce. The revised outlook includes the
impact from lower production volumes and higher direct operating
costs related to labor, energy, consumables and supplies as a
result of sustained inflationary pressures.
Development capital is expected to be $1.1 billion for 2022 to
incorporate delays in spending at Yanacocha Sulfides and Ahafo
North.
General and administrative expense is expected to be $270
million, incorporating slight increases in labor costs due to
inflationary pressures. Interest expense is expected to be $200
million, a reduction of $25 million following the timely
refinancing of our 2022 and 2023 notes in December of last
year.
Newmont 2022 Outlook a
Updated (as of July 25,
2022)
Previous (as of Dec. 2,
2021)
Consolidated Gold Production (Moz)
5.9
6.1
Attributable Gold Production (Moz) b
6.0
6.2
Consolidated Gold CAS ($/oz)
900
820
Consolidated Gold AISC($/oz) c
1,150
1,050
Consolidated Co-Product GEO Production
(Moz) d
1.3
1.3
Attributable Co-Product GEO Production
(Moz) d
1.3
1.3
Consolidated Co-Product GEO CAS ($/oz)
d
750
675
Consolidated Co-Product GEO AISC ($/oz)
c,d
1,050
975
Consolidated Total GEO Production (Moz)
d
7.2
7.4
Attributable Total GEO Production (Moz)
d
7.3
7.5
Consolidated Total GEO CAS ($/oz) d
875
800
Consolidated Total GEO AISC ($/oz) c,d
1,130
1,030
Consolidated Sustaining Capital
Expenditures ($M)
1,000
1,000
Consolidated Development Capital
Expenditures ($M)
1,100
1,400
Attributable Sustaining Capital
Expenditures ($M)
925
925
Attributable Development Capital
Expenditures ($M) e
1,100
1,400
General & Administrative ($M)
270
260
Interest Expense ($M)
200
225
Depreciation and Amortization ($M)
2,300
2,300
Exploration & Advanced Projects
($M)
450
450
Adjusted Tax Rate f,g
30% - 34%
30% - 34%
a
2022 outlook projections are considered
forward-looking statements and represent management’s good faith
estimates or expectations of future production results as of July
25, 2022. Outlook is based upon certain assumptions, including, but
not limited to, metal prices, oil prices, certain exchange rates
and other assumptions. For example, updated 2022 Outlook includes
actual results through June 30, 2022 and assumes $1,800/oz Au,
$4.10/lb Cu, $21.00/oz Ag, $1.60/lb Zn, $0.95/lb Pb, $0.74 USD/AUD
exchange rate, $0.80 USD/CAD exchange rate and $110/barrel WTI for
the second half of 2022. Production, CAS, AISC and capital
estimates exclude projects that have not yet been approved, except
for Yanacocha Sulfides, Pamour and Cerro Negro District Expansion 1
which are included in Outlook. The potential impact on inventory
valuation as a result of lower prices, input costs, and project
decisions are not included as part of this Outlook. Assumptions
used for purposes of Outlook may prove to be incorrect and actual
results may differ from those anticipated, including variation
beyond a +/-5% range. Outlook cannot be guaranteed. As such,
investors are cautioned not to place undue reliance upon Outlook
and forward-looking statements as there can be no assurance that
the plans, assumptions or expectations upon which they are placed
will occur. Amounts may not recalculate to totals due to rounding.
See cautionary at the end of this release.
b
Attributable gold production outlook
includes the Company’s equity investment (40%) in Pueblo Viejo with
~285Koz in 2022; does not include the Company’s other equity
investments. Attributable gold production outlook represents the
Company's 75% interest in Merian.
c
All-in sustaining costs (AISC) as used in
the Company’s Outlook is a non-GAAP metric; see below for further
information and reconciliation to consolidated 2022 CAS
outlook.
d
Gold equivalent ounces (GEO) is calculated
as pounds or ounces produced multiplied by the ratio of the other
metal’s price to the gold price, using Gold ($1,200/oz.), Copper
($3.25/lb.), Silver ($23.00/oz.), Lead ($0.95/lb.), and Zinc
($1.15/lb.) pricing.
e
Attributable development capital accounts
for the acquisition of the remaining interest in Yanacocha,
including Buenaventura's 43.65% interest and Sumitomo Corporation's
5% interest, as announced on February 8, 2022 and April 12, 2022,
respectively.
f
The adjusted tax rate excludes certain
items such as tax valuation allowance adjustments.
g
Assuming average prices of $1,800 per
ounce for gold, $3.25 per pound for copper, $23.00 per ounce for
silver, $0.95 per pound for lead, and $1.15 per pound for zinc and
achievement of current production and sales volumes and cost
estimates, we estimate our consolidated adjusted effective tax rate
related to continuing operations for 2022 will be between
30%-34%.
Three Months Ended June
30,
Six Months Ended June
30,
Operating Results
2022
2021
% Change
2022
2021
% Change
Attributable Sales (koz)
Attributable gold ounces sold (1)
1,455
1,383
5
%
2,746
2,744
—
%
Attributable gold equivalent ounces
sold
333
302
10
%
683
629
9
%
Average Realized Price ($/oz,
$/lb)
Average realized gold price
$
1,836
$
1,823
1
%
$
1,863
$
1,788
4
%
Average realized copper price
$
2.99
$
4.37
(32
) %
$
3.81
$
4.30
(11
) %
Average realized silver price
$
17.42
$
23.00
(24
) %
$
18.85
$
21.27
(11
) %
Average realized lead price
$
0.80
$
1.02
(22
) %
$
0.94
$
0.95
(1
) %
Average realized zinc price
$
1.08
$
1.34
(19
) %
$
1.47
$
1.19
24
%
Attributable Production (koz)
North America
316
397
(20
) %
625
810
(23
) %
South America
210
189
11
%
408
363
12
%
Australia
366
299
22
%
648
568
14
%
Africa
243
202
20
%
441
407
8
%
Nevada
290
284
2
%
578
587
(2
) %
Total Gold (excluding equity method
investments)
1,425
1,371
4
%
2,700
2,735
(1
) %
Pueblo Viejo (40%) (2)
70
78
(10
) %
139
169
(18
) %
Total Gold
1,495
1,449
3
%
2,839
2,904
(2
) %
North America
266
260
2
%
565
545
4
%
Australia
64
43
49
%
115
75
53
%
Total Gold Equivalent Ounces
330
303
9
%
680
620
10
%
CAS Consolidated ($/oz, $/GEO)
North America
$
1,124
$
769
46
%
$
1,061
$
752
41
%
South America
$
982
$
721
36
%
$
952
$
753
26
%
Australia
$
710
$
764
(7
) %
$
734
$
757
(3
) %
Africa
$
838
$
763
10
%
$
853
$
760
12
%
Nevada
$
1,035
$
753
37
%
$
967
$
749
29
%
Total Gold
$
932
$
755
23
%
$
912
$
754
21
%
Total Gold (by-product)
$
926
$
586
58
%
$
818
$
595
37
%
North America
$
1,054
$
586
80
%
$
864
$
550
57
%
Australia
$
710
$
898
(21
) %
$
765
$
913
(16
) %
Total Gold Equivalent Ounces
$
983
$
629
56
%
$
846
$
590
43
%
AISC Consolidated ($/oz, $/GEO)
North America
$
1,437
$
985
46
%
$
1,336
$
971
38
%
South America
$
1,203
$
1,022
18
%
$
1,164
$
1,041
12
%
Australia
$
873
$
997
(12
) %
$
917
$
1,048
(13
) %
Africa
$
1,017
$
1,000
2
%
$
1,057
$
974
9
%
Nevada
$
1,263
$
985
28
%
$
1,176
$
924
27
%
Total Gold
$
1,199
$
1,035
16
%
$
1,179
$
1,037
14
%
Total Gold (by-product)
$
1,261
$
918
37
%
$
1,155
$
935
24
%
North America
$
1,349
$
761
77
%
$
1,140
$
762
50
%
Australia
$
829
$
1,113
(26
) %
$
895
$
1,231
(27
) %
Total Gold Equivalent Ounces
$
1,286
$
886
45
%
$
1,138
$
851
34
%
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,
2022
2021
2022
2021
Sales
$
3,058
$
3,065
$
6,081
$
5,937
Costs and expenses
Costs applicable to sales
(1)
1,708
1,281
3,143
2,528
Depreciation and
amortization
559
561
1,106
1,114
Reclamation and remediation
49
57
110
103
Exploration
62
52
100
87
Advanced projects, research and
development
45
37
89
68
General and administrative
73
64
137
129
Other expense, net
22
52
57
91
2,518
2,104
4,742
4,120
Other income (expense):
Other income (loss), net
(75
)
50
(184
)
11
Interest expense, net of
capitalized interest
(57
)
(68
)
(119
)
(142
)
(132
)
(18
)
(303
)
(131
)
Income (loss) before income and mining tax
and other items
408
943
1,036
1,686
Income and mining tax benefit
(expense)
(33
)
(341
)
(247
)
(576
)
Equity income (loss) of affiliates
17
49
56
99
Net income (loss) from continuing
operations
392
651
845
1,209
Net income (loss) from discontinued
operations
8
10
24
31
Net income (loss)
400
661
869
1,240
Net loss (income) attributable to
noncontrolling interests
(13
)
(11
)
(34
)
(31
)
Net income (loss) attributable to Newmont
stockholders
$
387
$
650
$
835
$
1,209
Net income (loss) attributable to Newmont
stockholders:
Continuing operations
$
379
$
640
$
811
$
1,178
Discontinued operations
8
10
24
31
$
387
$
650
$
835
$
1,209
Weighted average common shares
(millions):
Basic
794
801
793
801
Effect of employee stock-based
awards
1
2
2
1
Diluted
795
803
795
802
Net income (loss) attributable to Newmont
stockholders per common share
Basic:
Continuing operations
$
0.48
$
0.80
$
1.02
$
1.47
Discontinued operations
0.01
0.01
0.03
0.04
$
0.49
$
0.81
$
1.05
$
1.51
Diluted:
Continuing operations
$
0.48
$
0.80
$
1.02
$
1.47
Discontinued operations
0.01
0.01
0.03
0.04
$
0.49
$
0.81
$
1.05
$
1.51
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,
2022
2021
2022
2021
Operating activities:
Net income (loss)
$
400
$
661
$
869
$
1,240
Non-cash adjustments:
Depreciation and
amortization
559
561
1,106
1,114
Net loss (income) from
discontinued operations
(8
)
(10
)
(24
)
(31
)
Charges from pension
settlement
—
—
130
—
Deferred income taxes
(70
)
39
(111
)
14
Reclamation and remediation
46
53
103
96
Change in fair value of
investments
135
(26
)
96
84
Stock-based compensation
22
21
40
38
Other non-cash adjustments
(14
)
(40
)
15
(130
)
Net change in operating assets
and liabilities
(37
)
(266
)
(502
)
(591
)
Net cash provided by (used in)
operating activities of continuing operations
1,033
993
1,722
1,834
Net cash provided by (used in)
operating activities of discontinued operations
10
2
15
2
Net cash provided by (used in) operating
activities
1,043
995
1,737
1,836
Investing activities:
Additions to property, plant
and mine development
(519
)
(415
)
(956
)
(814
)
Contributions to equity method
investees
(39
)
(45
)
(91
)
(72
)
Payment relating to sale of La
Zanja
—
—
(45
)
—
Proceeds from asset and
investment sales
32
22
41
85
Return of investment from
equity method investees
26
—
39
18
Acquisitions, net
(15
)
(328
)
(15
)
(328
)
Purchases of investments
(4
)
(12
)
(8
)
(16
)
Other
4
1
1
—
Net cash provided by (used in)
investing activities
(515
)
(777
)
(1,034
)
(1,127
)
Financing activities:
Dividends paid to common
stockholders
(437
)
(440
)
(873
)
(881
)
Acquisition of noncontrolling
interests
(48
)
—
(348
)
—
Distributions to noncontrolling
interests
(44
)
(43
)
(103
)
(97
)
Repayment of debt
—
(550
)
(89
)
(550
)
Funding from noncontrolling
interests
24
18
56
48
Payments for withholding of
employee taxes related to stock-based compensation
—
(1
)
(36
)
(29
)
Payments on lease and other
financing obligations
(15
)
(18
)
(34
)
(36
)
Repurchases of common stock
—
(134
)
—
(134
)
Other
(2
)
13
10
13
Net cash provided by (used in) financing
activities
(522
)
(1,155
)
(1,417
)
(1,666
)
Effect of exchange rate changes on cash,
cash equivalents and restricted cash
(12
)
2
(9
)
—
Net change in cash, cash equivalents and
restricted cash
(6
)
(935
)
(723
)
(957
)
Cash, cash equivalents and restricted cash
at beginning of period
4,376
5,626
5,093
5,648
Cash, cash equivalents and restricted cash
at end of period
$
4,370
$
4,691
$
4,370
$
4,691
NEWMONT CORPORATION CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited, in
millions)
Three Months Ended June
30,
Six Months Ended June
30,
2022
2021
2022
2021
Reconciliation of cash, cash equivalents
and restricted cash:
Cash and cash equivalents
$
4,307
$
4,583
$
4,307
$
4,583
Restricted cash included in
Other current assets
—
1
—
1
Restricted cash included in
Other non-current assets
63
107
63
107
Total cash, cash equivalents and
restricted cash
$
4,370
$
4,691
$
4,370
$
4,691
NEWMONT CORPORATION CONDENSED
CONSOLIDATED BALANCE SHEETS (unaudited, in millions)
At June 30,
2022
At December 31, 2021
ASSETS
Cash and cash equivalents
$
4,307
$
4,992
Trade receivables
364
337
Investments
51
82
Inventories
922
930
Stockpiles and ore on leach pads
752
857
Other current assets
511
498
Current assets
6,907
7,696
Property, plant and mine development,
net
24,131
24,124
Investments
3,203
3,243
Stockpiles and ore on leach pads
1,788
1,775
Deferred income tax assets
209
269
Goodwill
2,771
2,771
Other non-current assets
681
686
Total assets
$
39,690
$
40,564
LIABILITIES
Accounts payable
$
583
$
518
Employee-related benefits
471
386
Income and mining taxes payable
178
384
Lease and other financing obligations
98
106
Debt
—
87
Other current liabilities
1,121
1,173
Current liabilities
2,451
2,654
Debt
5,568
5,565
Lease and other financing obligations
507
544
Reclamation and remediation
liabilities
5,844
5,839
Deferred income tax liabilities
1,976
2,144
Employee-related benefits
371
439
Silver streaming agreement
868
910
Other non-current liabilities
506
608
Total liabilities
18,091
18,703
Contingently redeemable noncontrolling
interest
—
48
EQUITY
Common stock
1,278
1,276
Treasury stock
(236
)
(200
)
Additional paid-in capital
17,334
17,981
Accumulated other comprehensive income
(loss)
(11
)
(133
)
Retained earnings (accumulated
deficit)
3,056
3,098
Newmont stockholders' equity
21,421
22,022
Noncontrolling interests
178
(209
)
Total equity
21,599
21,813
Total liabilities and
equity
$
39,690
$
40,564
Non-GAAP Financial Measures
Non-GAAP financial measures are intended to provide additional
information only and do not have any standard meaning prescribed by
GAAP. These measures should not be considered in isolation or as a
substitute for measures of performance prepared in accordance with
GAAP. Refer to Non-GAAP Financial Measures within Part II, Item 7
within our Form 10-K filed with the SEC on February 24, 2022 for
further information on the Non-GAAP financial measures presented
below, including why management believes that its presentation of
non-GAAP financial measures provides useful information to
investors.
Adjusted net income (loss)
Net income (loss) attributable to Newmont stockholders is
reconciled to Adjusted net income (loss) as follows:
Three Months Ended June
30, 2022
Six Months Ended June
30, 2022
per share data (1)
per share data (1)
basic
diluted
basic
diluted
Net income (loss) attributable to Newmont
stockholders
$
387
$
0.49
$
0.49
$
835
$
1.05
$
1.05
Net loss (income) attributable
to Newmont stockholders from discontinued operations
(8
)
(0.01
)
(0.01
)
(24
)
(0.03
)
(0.03
)
Net income (loss) attributable to Newmont
stockholders from continuing operations
379
0.48
0.48
811
1.02
1.02
Pension settlement (2)
—
—
—
130
0.16
0.16
Change in fair value of
investments (3)
135
0.17
0.17
96
0.13
0.13
(Gain) loss on asset and
investment sales (4)
—
—
—
35
0.04
0.04
Settlement costs (5)
5
—
—
18
0.03
0.03
Reclamation and remediation
charges (6)
—
—
—
13
0.02
0.02
Impairment of long-lived and
other assets (7)
2
—
—
2
—
—
COVID-19 specific costs (8)
1
—
—
1
—
—
Restructuring and severance
(9)
—
—
—
1
—
—
Other (10)
(18
)
(0.03
)
(0.03
)
(18
)
(0.03
)
(0.03
)
Tax effect of adjustments
(11)
(25
)
(0.03
)
(0.03
)
(62
)
(0.08
)
(0.08
)
Valuation allowance and other
tax adjustments (12)
(117
)
(0.13
)
(0.13
)
(119
)
(0.14
)
(0.15
)
Adjusted net income (loss)
$
362
$
0.46
$
0.46
$
908
$
1.15
$
1.14
Weighted average common shares (millions):
(13)
794
795
793
795
1
Per share measures may not recalculate due
to rounding.
2
Pension settlement, included in Other
income (loss), net, represents pension settlement charges in 2022
related to the annuitization of certain defined benefit plans. For
further information, refer to Note 7 of the Condensed Consolidated
Financial Statements.
3
Change in fair value of investments,
included in Other income (loss), net, primarily represents
unrealized gains and losses related to the Company's investment in
current and non-current marketable and other equity securities. For
further information regarding our investments, refer to Note 10 of
the Condensed Consolidated Financial Statements.
4
(Gain) loss on asset and investment sales,
included in Other income (loss), net, primarily represents the loss
recognized on the sale of the La Zanja equity method investment.
For further information, refer to Note 7 of the Condensed
Consolidated Financial Statements.
5
Settlement costs, included in Other
expense, net, primarily are comprised of legal settlement and a
voluntary contribution made to support humanitarian efforts in
Ukraine.
6
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. Refer
to Note 5 of the Condensed Consolidated Financial Statement for
further information.
7
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 and materials and supplied
inventories.
8
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.
9
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.
10
Primarily comprised of a reimbursement of
certain historical Goldcorp operational expenses related to a
legacy project that reached commercial production in the second
quarter of 2022, included in Other income (loss), net.
11
The tax effect of adjustments, included in
Income and mining tax benefit (expense), represents the tax effect
of adjustments in footnotes (2) through (10), as described above,
and are calculated using the applicable regional tax rate.
12
Valuation allowance and other tax
adjustments, included in Income and mining tax benefit (expense),
is recorded for items such as foreign tax credits, 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, 2022 reflects the net increase or (decrease) to net operating
losses, capital losses, tax credit carryovers, and other deferred
tax assets subject to valuation allowance of $37 and $49, the
effects of changes in foreign exchange rates on deferred tax assets
and liabilities of $(23) and $(26), net reductions to the reserve
for uncertain tax positions of $(5) and $(17), other tax
adjustments of $(1) and $—, and a tax settlement in Mexico of
$(125) and $(125). For further information on reductions to the
reserve for uncertain tax positions, refer to Note 8 of the
Condensed Consolidated Financial Statements.
13
Adjusted net income (loss) per diluted
share is calculated using diluted common shares in accordance with
GAAP.
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 (loss), net, primarily represents
unrealized gains and losses on marketable and other equity
securities and our investment instruments. For further information
regarding our investments, refer to Note 10 of the Condensed
Consolidated Financial Statements.
3
(Gain) loss on asset and investment sales,
included in Other income (loss), net, primarily represents a gain
on the sale of TMAC. For further information, refer to Note 7 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. Refer
to Note 5 of the Condensed Consolidated Financial Statements for
further information.
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 and materials and supplies
inventories.
6
Settlement costs, included in Other
expense, net, primarily represents certain costs associated with
legal and other settlements.
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 amount is presented net
of income (loss) attributable to noncontrolling interests of $— and
$(1), respectively.
8
COVID-19 specific costs, included in Other
expense, net, primarily includes amounts distributed from the
Newmont Global Community Support 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. Refer to Note 6 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 GAAP.
Earnings before interest, taxes,
depreciation and amortization and Adjusted earnings before
interest, taxes, depreciation and amortization
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,
2022
2021
2022
2021
Net income (loss) attributable to Newmont
stockholders
$
387
$
650
$
835
$
1,209
Net income (loss) attributable
to noncontrolling interests
13
11
34
31
Net loss (Income) from
discontinued operations
(8
)
(10
)
(24
)
(31
)
Equity loss (income) of
affiliates
(17
)
(49
)
(56
)
(99
)
Income and mining tax expense
(benefit)
33
341
247
576
Depreciation and
amortization
559
561
1,106
1,114
Interest expense, net of
capitalized interest
57
68
119
142
EBITDA
$
1,024
$
1,572
$
2,261
$
2,942
Adjustments:
Pension settlement (1)
—
—
130
—
Change in fair value of
investments (2)
135
(26
)
96
84
(Gain) loss on asset and
investment sales (3)
—
—
35
(43
)
Settlement costs (4)
5
8
18
11
Reclamation and remediation
charges (5)
—
20
13
30
Impairment of long-lived and
other assets (6)
2
11
2
12
COVID-19 specific costs (7)
1
1
1
2
Restructuring and severance
(8)
—
5
1
10
Other (9)
(18
)
—
(18
)
—
Adjusted EBITDA
$
1,149
$
1,591
$
2,539
$
3,048
1
Pension settlement, included in Other
income (loss), net, represents pension settlement charges in 2022
related to the annuitization of certain defined benefit plans. For
further information, refer to Note 7 of the Condensed Consolidated
Financial Statements.
2
Change in fair value of investments,
included in Other income (loss), net, primarily represents
unrealized gains and losses related to the Company's investments in
current and non-current marketable and other equity securities. For
further information regarding our investments, refer to Note 10 of
the Condensed Consolidated Financial Statements.
3
(Gain) loss on asset and investment sales,
included in Other income (loss), net, primarily represents the loss
recognized on the sale of the La Zanja equity method investment in
2022 and a gain on the sale of TMAC in 2021. For further
information, refer to Note 7 of the Condensed Consolidated
Financial Statements.
4
Settlement costs, included in Other
expense, net, are primarily comprised of a legal settlement and a
voluntary contribution made to support humanitarian efforts in
Ukraine in 2022.
5
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. Refer
to Note 5 of the Condensed Consolidated Financial Statement for
further information.
6
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 and materials and supplied
inventories.
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.
8
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.
9
Primarily comprised of a reimbursement of
certain historical Goldcorp operational expenses related to a
legacy project that reached commercial production in the second
quarter of 2022, included in Other income (loss), net.
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,
2022
2021
2022
2021
Income (Loss) before Income and Mining Tax
and other Items, NGM (1)
$
91
$
170
$
244
$
337
Depreciation and amortization
(1)
127
128
252
255
NGM EBITDA
$
218
$
298
$
496
$
592
1
Refer to Note 3 of the Condensed
Consolidated Financial Statements.
Free Cash Flow
The following table sets forth a reconciliation of Free Cash
Flow 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,
2022
2021
2022
2021
Net cash provided by (used in) operating
activities
$
1,043
$
995
$
1,737
$
1,836
Less: Net cash used in
(provided by) operating activities of discontinued operations
$
(10
)
(2
)
(15
)
(2
)
Net cash provided by (used in) operating
activities of continuing operations
$
1,033
993
1,722
1,834
Less: Additions to property,
plant and mine development
$
(519
)
(415
)
(956
)
(814
)
Free Cash Flow
$
514
$
578
$
766
$
1,020
Net cash provided by (used in) investing
activities (1)
$
(515
)
$
(777
)
$
(1,034
)
$
(1,127
)
Net cash provided by (used in) financing
activities
$
(522
)
$
(1,155
)
$
(1,417
)
$
(1,666
)
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,
2022
Six Months Ended June 30,
2022
Consolidated
Attributable to noncontrolling
interests (1)
Attributable to Newmont
Stockholders
Consolidated
Attributable to noncontrolling
interests (1)
Attributable to Newmont
Stockholders
Net cash provided by (used in) operating
activities
$
1,043
$
(20
)
$
1,023
$
1,737
$
(53
)
$
1,684
Less: Net cash used in
(provided by) operating activities of discontinued operations
(10
)
—
(10
)
(15
)
—
(15
)
Net cash provided by (used in) operating
activities of continuing operations
1,033
(20
)
1,013
1,722
(53
)
1,669
Less: Additions to property,
plant and mine development (2)
(519
)
3
(516
)
(956
)
21
(935
)
Free Cash Flow
$
514
$
(17
)
$
497
$
766
$
(32
)
$
734
Net cash provided by (used in) investing
activities (3)
$
(515
)
$
(1,034
)
Net cash provided by (used in) financing
activities
$
(522
)
$
(1,417
)
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.
2
For the three months ended June 30, 2022,
Yanacocha and Merian had total consolidated Additions to property,
plant and mine development of $82 and $13, respectively, on a cash
basis. For the six months ended June 30, 2022, Yanacocha and Merian
had total consolidated Additions to property, plant and mine
development of $150 and $24, 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,
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 f $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.
Costs applicable to sales per ounce/gold
equivalent ounce
Costs applicable to sales per ounce/gold equivalent ounce 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.
The following tables reconcile these non-GAAP measures to the
most directly comparable GAAP measures.
Costs applicable to sales per gold ounce
Three Months Ended June
30,
Six Months Ended June
30,
2022
2021
2022
2021
Costs applicable to sales (1)(2)
$
1,381
$
1,091
$
2,565
$
2,156
Gold sold (thousand ounces)
1,482
1,444
2,811
2,861
Costs applicable to sales per ounce
(3)
$
932
$
755
$
912
$
754
1
Includes by-product credits of $26 and $72
during the three months ended June 30, 2022 and 2021, respectively,
and $53 and $127 during the six months ended June 30, 2022 and
2021, respectively.
2
Excludes Depreciation and amortization and
Reclamation and remediation.
3
Per ounce measures may not recalculate due
to rounding.
Costs applicable to sales per gold equivalent ounce
Three Months Ended June
30,
Six Months Ended June
30,
2022
2021
2022
2021
Costs applicable to sales (1)(2)
$
327
$
190
$
578
$
372
Gold equivalent ounces - other metals
(thousand ounces) (3)
333
302
683
629
Costs applicable to sales per gold
equivalent ounce (4)
$
983
$
629
$
846
$
590
1
Includes by-product credits of $2 and $2
during the three months ended June 30, 2022 and 2021, respectively,
and $4 and $3 during the six months ended June 30, 2022 and 2021,
respectively
2
Excludes Depreciation and amortization and
Reclamation and remediation.
3
Gold equivalent ounces is calculated as
pounds or ounces produced multiplied by the ratio of the other
metals price to the gold price, using Gold ($1,200/oz.), Copper
($3.25/lb.), Silver ($23.00/oz.), Lead ($0.95/lb.) and Zinc
($1.15/lb.) pricing for 2022 and Gold ($1,200/oz.), Copper
($2.75/lb.), Silver ($22.00/oz.), Lead ($0.90/lb.) and Zinc
($1.05/lb.) pricing for 2021.
4
Per ounce measures may not recalculate due
to rounding.
Costs applicable to sales per gold ounce for Nevada Gold
Mines (NGM)
Three Months Ended June
30,
Six Months Ended June
30,
2022
2021
2022
2021
Cost applicable to sales, NGM (1)(2)
$
302
$
215
$
559
$
442
Gold sold (thousand ounces), NGM
291
285
578
590
Costs applicable to sales per ounce, NGM
(3)
$
1,035
$
753
$
967
$
749
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
All-in sustaining costs represent the sum of certain costs,
recognized as GAAP financial measures, that management considers to
be associated with production. All-in sustaining costs per ounce
amounts are calculated by dividing all-in sustaining costs by gold
ounces or gold equivalent ounces sold.
Three Months Ended
June 30, 2022
Costs Applicable to
Sales(1)(2)(3)
Reclamation Costs(4)
Advanced Projects, Research
and Development and Exploration(5)
General and
Administrative
Other Expense, Net(6)
Treatment and Refining
Costs
Sustaining Capital and Lease
Related Costs(7)(8)
All-In Sustaining
Costs
Ounces (000) Sold
All-In Sustaining Costs Per
oz.(9)
Gold
CC&V
$
49
$
4
$
2
$
—
$
2
$
—
$
14
$
71
46
$
1,553
Musselwhite
53
1
2
—
—
—
11
67
40
1,693
Porcupine
71
1
4
—
—
—
14
90
68
1,328
Éléonore
71
2
1
—
2
—
14
90
47
1,922
Peñasquito (10)
127
3
1
—
—
6
18
155
130
1,187
Other North America
—
—
—
2
—
—
—
2
—
—
North America
371
11
10
2
4
6
71
475
331
1,437
Yanacocha
73
6
2
—
4
—
6
91
69
1,321
Merian
94
1
4
—
1
—
13
113
96
1,173
Cerro Negro
71
2
1
—
1
—
11
86
78
1,106
Other South America
—
—
—
2
—
—
—
2
—
—
South America
238
9
7
2
6
—
30
292
243
1,203
Boddington
181
4
1
—
1
5
14
206
241
854
Tanami
84
1
1
—
2
—
28
116
132
873
Other Australia
—
—
1
2
—
—
1
4
—
—
Australia
265
5
3
2
3
5
43
326
373
873
Ahafo
129
2
—
—
—
—
22
153
135
1,130
Akyem
76
8
—
—
—
—
7
91
109
837
Other Africa
—
—
1
3
—
—
1
5
—
—
Africa
205
10
1
3
—
—
30
249
244
1,017
Nevada Gold Mines
302
3
4
2
—
—
57
368
291
1,263
Nevada
302
3
4
2
—
—
57
368
291
1,263
Corporate and Other
—
—
16
50
—
—
2
68
—
—
Total Gold
$
1,381
$
38
$
41
$
61
$
13
$
11
$
233
$
1,778
1,482
$
1,199
Gold equivalent ounces - other metals
(11)
Peñasquito (10)
$
278
$
5
$
4
$
—
$
1
$
32
$
35
$
355
264
$
1,347
Other North America
—
—
—
—
—
—
—
—
—
—
North America
278
5
4
—
1
32
35
355
264
1,349
Boddington
49
—
1
—
—
3
3
56
69
818
Other Australia
—
—
—
1
—
—
—
1
—
—
Australia
49
—
1
1
—
3
3
57
69
829
Corporate and Other
—
—
3
11
—
—
1
15
—
—
Total Gold Equivalent
Ounces
$
327
$
5
$
8
$
12
$
1
$
35
$
39
$
427
333
$
1,286
Consolidated
$
1,708
$
43
$
49
$
73
$
14
$
46
$
272
$
2,205
1
Excludes Depreciation and amortization and
Reclamation and remediation.
2
Includes by-product credits of $28 and
excludes co-product revenues of $336.
3
Includes stockpile and leach pad inventory
adjustments of $2 at CC&V and $27 at NGM.
4
Reclamation costs include operating
accretion and amortization of asset retirement costs of $16 and
$27, 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 $29 and $4, respectively.
5
Advanced projects, research and
development and exploration excludes development expenditures of $1
at CC&V, $1 at Peñasquito, $1 at Other North America, $3 at
Yanacocha, $2 at Merian, $3 at Cerro Negro, $11 at Other South
America, $6 at Tanami, $4 at Other Australia, $7 at Ahafo, $4 at
Akyem, $5 at NGM and $10 at Corporate and Other, totaling $58
related to developing new operations or major projects at existing
operations where these projects will materially benefit the
operation.
6
Other expense, net is adjusted for
settlement costs of $5, impairment of long-lived and other assets
of $2 and distributions from the Newmont Global Community Support
Fund of $1.
7
Includes sustaining capital expenditures
of $94 for North America, $30 for South America, $43 for Australia,
$29 for Africa, $57 for Nevada, and $3 for Corporate and Other,
totaling $256 and excludes development capital expenditures,
capitalized interest and the change in accrued capital totaling
$263. See Liquidity and Capital Resources within Part I, Item 2,
Management's Discussion and Analysis in our Form 10-Q filed with
the SEC on July 25, 2022 for discussion of major development
projects.
8
Includes finance lease payments for
sustaining projects of $16.
9
Per ounce measures may not recalculate due
to rounding.
10
Costs applicable to sales includes $70
related to the Peñasquito Profit-Sharing Agreement. For further
information, refer to Note 3 of the Condensed Consolidated
Financial Statements in our Form 10-Q filed with the SEC on July
25, 2022.
11
Gold equivalent ounces is calculated as
pounds or ounces produced multiplied by the ratio of the other
metals price to the gold price, using Gold ($1,200/oz.), Copper
($3.25/lb.), Silver ($23.00/oz.), Lead ($0.95/lb.) and Zinc
($1.15/lb.) pricing for 2022.
Three Months 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
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
$
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
(11)
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, included in Other
expense, net, 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 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.
8
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. See Liquidity and Capital Resources within Part I, Item 2,
Management's Discussion and Analysis in our Form 10-Q filed with
the SEC on July 25, 2022 for discussion of major development
projects.
9
Includes finance lease payments for
sustaining projects of $17.
10
Per ounce measures may not recalculate due
to rounding.
11
Gold equivalent ounces is calculated as
pounds or ounces produced multiplied by the ratio of the other
metals price to the gold price, using Gold ($1,200/oz.), Copper
($2.75/lb.), Silver ($22.00/oz.), Lead ($0.90/lb.) and Zinc
($1.05/lb.) pricing for 2021.
Six Months Ended
June 30, 2022
Costs Applicable to
Sales(1)(2)(3)
Reclamation Costs(4)
Advanced Projects, Research
and Development and Exploration(5)
General and
Administrative
Other Expense, Net(6)
Treatment and Refining
Costs
Sustaining Capital and Lease
Related Costs(7)(8)
All-In Sustaining
Costs
Ounces (000) Sold
All-In Sustaining Costs Per
oz.(9)
Gold
CC&V
$
101
$
7
$
3
$
—
$
3
$
—
$
18
$
132
82
$
1,608
Musselwhite
96
3
3
—
1
—
17
120
72
1,670
Porcupine
137
2
6
—
—
—
23
168
128
1,313
Éléonore
133
4
1
—
3
—
26
167
97
1,734
Peñasquito (10)
214
5
2
—
1
13
32
267
264
1,013
Other North America
—
—
—
3
1
—
—
4
—
—
North America
681
21
15
3
9
13
116
858
643
1,336
Yanacocha
140
10
2
—
7
—
11
170
137
1,243
Merian
181
3
5
—
2
—
24
215
199
1,079
Cerro Negro
134
3
1
—
7
—
22
167
142
1,172
Other South America
—
—
—
5
—
—
—
5
—
—
South America
455
16
8
5
16
—
57
557
478
1,164
Boddington
343
9
2
—
1
8
27
390
439
888
Tanami
149
1
4
—
5
—
57
216
231
933
Other Australia
—
—
1
4
—
—
4
9
—
—
Australia
492
10
7
4
6
8
88
615
670
917
Ahafo
235
4
1
—
1
—
44
285
243
1,171
Akyem
143
15
1
—
—
—
17
176
199
884
Other Africa
—
—
1
5
—
—
1
7
—
—
Africa
378
19
3
5
1
—
62
468
442
1,057
Nevada Gold Mines
559
4
7
5
—
1
103
679
578
1,176
Nevada
559
4
7
5
—
1
103
679
578
1,176
Corporate and Other
—
—
39
93
(1
)
—
6
137
—
—
Total Gold
$
2,565
$
70
$
79
$
115
$
31
$
22
$
432
$
3,314
2,811
$
1,179
Gold equivalent ounces - other metals
(11)
Peñasquito(10)
$
483
$
10
$
6
$
—
$
4
$
65
$
68
$
636
559
$
1,138
Other North America
—
—
—
1
—
—
—
1
—
—
North America
483
10
6
1
4
65
68
637
559
1,140
Boddington
95
1
1
—
—
5
7
109
124
881
Other Australia
—
—
—
1
—
—
1
2
—
—
Australia
95
1
1
1
—
5
8
111
124
895
Corporate and Other
—
—
8
20
—
—
1
29
—
—
Total Gold Equivalent
Ounces
$
578
$
11
$
15
$
22
$
4
$
70
$
77
$
777
683
$
1,138
Consolidated
$
3,143
$
81
$
94
$
137
$
35
$
92
$
509
$
4,091
1
Excludes Depreciation and amortization and
Reclamation and remediation.
2
Includes by-product credits of $57 and
excludes co-product revenues of $845.
3
Includes stockpile and leach pad inventory
adjustments of $7 at CC&V, $3 at Merian and $28 at NGM.
4
Reclamation costs include operating
accretion and amortization of asset retirement costs of $32 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 $57 and $21, respectively.
5
Advanced projects, research and
development and exploration excludes development expenditures of $1
at CC&V, $1 at Porcupine, $3 at Peñasquito, $1 at Other North
America, $4 at Yanacocha, $4 at Merian, $6 at Cerro Negro, $20 at
Other South America, $9 at Tanami, $7 at Other Australia, $10 at
Ahafo, $7 at Akyem, $8 at NGM and $14 at Corporate and Other,
totaling $95 related to developing new operations or major projects
at existing operations where these projects will materially benefit
the operation.
6
Other expense, net is adjusted for
settlement costs of $18, impairment of long-lived and other assets
of $2, restructuring and severance costs of $1 and distributions
from the Newmont Global Community Support Fund of $1.
7
Includes sustaining capital expenditures
of $160 for North America, $57 for South America, $89 for
Australia, $60 for Africa, $103 for Nevada, and $7 for Corporate
and Other, totaling $476 and excludes development capital
expenditures, capitalized interest and the change in accrued
capital totaling $480. See Liquidity and Capital Resources within
Part I, Item 2, Management's Discussion and Analysis in our Form
10-Q filed with the SEC on July 25, 2022 for discussion of major
development projects.
8
Includes finance lease payments for
sustaining projects of $33.
9
Per ounce measures may not recalculate due
to rounding.
10
Costs applicable to sales includes $70
related to the Peñasquito Profit-Sharing Agreement. For further
information, refer to Note 3 of the Condensed Consolidated
Financial Statements in our Form 10-Q filed with the SEC on July
25, 2022.
11
Gold equivalent ounces is calculated as
pounds or ounces produced multiplied by the ratio of the other
metals price to the gold price, using Gold ($1,200/oz.), Copper
($3.25/lb.), Silver ($23.00/oz.), Lead ($0.95/lb.) and Zinc
($1.15/lb.) pricing for 2022.
Six 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
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
$
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
(11)
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, included in Other
expense, net, 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 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.
8
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. See Liquidity and Capital Resources within Part I, Item 2,
Management's Discussion and Analysis in our Form 10-Q filed with
the SEC on July 25, 2022 for discussion of major development
projects.
9
Includes finance lease payments for
sustaining projects of $34.
10
Per ounce measures may not recalculate due
to rounding.
11
Gold equivalent ounces is calculated as
pounds or ounces produced multiplied by the ratio of the other
metals price to the gold price, using Gold ($1,200/oz.), Copper
($2.75/lb.), Silver ($22.00/oz.), Lead ($0.90/lb.) and Zinc
($1.05/lb.) pricing for 2021.
A reconciliation of the 2022 Gold AISC outlook to the 2022 Gold
CAS outlook, the 2022 Co-product AISC outlook to the 2022
Co-product CAS outlook and the 2022 Total GEO AISC outlook to the
2022 Total GEO 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.
2022 Outlook - Gold (1)(2)
(in millions, except ounces and per
ounce)
Outlook Estimate
Cost Applicable to Sales (3)(4)
$
5,330
Reclamation Costs (5)
150
Advanced Projects & Exploration
(6)
150
General and Administrative (7)
235
Other Expense
50
Treatment and Refining Costs
60
Sustaining Capital (8)
875
Sustaining Finance Lease Payments
40
All-in Sustaining Costs
$
6,890
Ounces (000) Sold (9)
6,000
All-in Sustaining Costs per Oz
$
1,150
1
The reconciliation is provided for
illustrative purposes in order to better describe management’s
estimates of the components of the calculation. Estimates for each
component of the forward-looking All-in sustaining costs per ounce
are independently calculated and, as a result, the total All-in
sustaining costs and the All-in sustaining costs per ounce may not
sum to the component ranges. While a reconciliation to the most
directly comparable GAAP measure has been provided for 2022 AISC
Gold, Co-Product and Total GEO Outlook on a consolidated basis, a
reconciliation has not been provided on an individual site or
project basis in reliance on Item 10(e)(1)(i)(B) of Regulation S-K
because such reconciliation is not available without unreasonable
efforts.
2
All values are presented on a consolidated
basis for Newmont.
3
Excludes Depreciation and amortization and
Reclamation and remediation.
4
Includes stockpile and leach pad inventory
adjustments.
5
Reclamation costs include operating
accretion and amortization of asset retirement costs.
6
Advanced Project and Exploration excludes
non-sustaining advanced projects and exploration.
7
Includes stock based compensation.
8
Excludes development capital expenditures,
capitalized interest and change in accrued capital.
9
Consolidated production for Merian is
presented on a total production basis for the mine site and
excludes production from Pueblo Viejo.
2022 Outlook - Co-Product (1)(2)
(in millions, except GEO and per
GEO)
Outlook Estimate
Cost Applicable to Sales (3)(4)
$
970
Reclamation Costs (5)
20
Advanced Projects & Exploration
(6)
20
General and Administrative (7)
35
Other Expense
20
Treatment and Refining Costs
160
Sustaining Capital (8)
125
Sustaining Finance Lease Payments
20
All-in Sustaining Costs
$
1,370
Co-Product GEO (000) Sold (9)
1,300
All-in Sustaining Costs per Co Product
GEO
$
1,050
1
The reconciliation is provided for
illustrative purposes in order to better describe management’s
estimates of the components of the calculation. Estimates for each
component of the forward-looking All-in sustaining costs per ounce
are independently calculated and, as a result, the total All-in
sustaining costs and the All-in sustaining costs per ounce may not
sum to the component ranges. While a reconciliation to the most
directly comparable GAAP measure has been provided for 2022 AISC
Gold, Co-Product and Total GEO Outlook on a consolidated basis, a
reconciliation has not been provided on an individual site or
project basis in reliance on Item 10(e)(1)(i)(B) of Regulation S-K
because such reconciliation is not available without unreasonable
efforts.
2
All values are presented on a consolidated
basis for Newmont.
3
Excludes Depreciation and amortization and
Reclamation and remediation.
4
Includes stockpile and leach pad inventory
adjustments.
5
Reclamation costs include operating
accretion and amortization of asset retirement costs.
6
Advanced Project and Exploration excludes
non-sustaining advanced projects and exploration.
7
Includes stock based compensation.
8
Excludes development capital expenditures,
capitalized interest and change in accrued capital.
9
Co-Product GEO are all non-gold
co-products (Peñasquito silver, zinc, lead, Boddington copper).
2022 Outlook - Total GEO (1)(2)
(in millions, except GEO and per
GEO)
Outlook Estimate
Cost Applicable to Sales (3)(4)
$
6,300
Reclamation Costs (5)
170
Advanced Projects and Exploration (6)
170
General and Administrative (7)
270
Other Expense
70
Treatment and Refining Costs
220
Sustaining Capital (8)
1,000
Sustaining Finance Lease Payments
60
All-in Sustaining Costs
$
8,260
Total GEO (000) Sold (9)
7,300
All-in Sustaining Costs per Total GEO
$
1,130
1
The reconciliation is provided for
illustrative purposes in order to better describe management’s
estimates of the components of the calculation. Estimates for each
component of the forward-looking All-in sustaining costs per ounce
are independently calculated and, as a result, the total All-in
sustaining costs and the All-in sustaining costs per ounce may not
sum to the component ranges. While a reconciliation to the most
directly comparable GAAP measure has been provided for 2022 AISC
Gold, Co-Product and Total GEO Outlook on a consolidated basis, a
reconciliation has not been provided on an individual site or
project basis in reliance on Item 10(e)(1)(i)(B) of Regulation S-K
because such reconciliation is not available without unreasonable
efforts.
2
All values are presented on a consolidated
basis for Newmont.
3
Excludes Depreciation and amortization and
Reclamation and remediation.
4
Includes stockpile and leach pad inventory
adjustments.
5
Reclamation costs include operating
accretion and amortization of asset retirement costs.
6
Advanced Project and Exploration excludes
non-sustaining advanced projects and exploration.
7
Includes stock based compensation.
8
Excludes development capital expenditures,
capitalized interest and change in accrued capital.
9
Consolidated production for Merian is
presented on a total production basis for the mine site and
excludes production from Pueblo Viejo. Total GEO represents gold
and 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, 2022
March 31, 2022
December 31, 2021
September 30, 2021
Net income (loss) attributable to Newmont
stockholders
$
387
$
448
$
(46
)
$
3
Net income (loss) attributable
to noncontrolling interests
13
21
(718
)
(246
)
Net loss (income) from
discontinued operations
(8
)
(16
)
(15
)
(11
)
Equity loss (income) of
affiliates
(17
)
(39
)
(28
)
(39
)
Income and mining tax expense
(benefit)
33
214
300
222
Depreciation and
amortization
559
547
639
570
Interest expense, net of
capitalized interest
57
62
66
66
EBITDA
1,024
1,237
198
565
EBITDA Adjustments:
Change in fair value of
investments
135
(39
)
(45
)
96
Settlement costs
5
13
—
—
Impairment of long-lived and
other assets
2
—
7
6
COVID-19 specific costs
1
—
2
1
Pension settlement
—
130
4
—
(Gain) loss on asset and
investment sales
—
35
(166
)
(3
)
Reclamation and remediation
charges
—
13
1,587
79
Restructuring and severance
—
1
1
—
Loss on debt extinguishment
—
—
11
—
Loss on assets held for
sale
—
—
—
571
Impairment of investments
—
—
—
1
Other
(18
)
—
—
—
Adjusted EBITDA
1,149
1,390
1,599
1,316
12 month trailing Adjusted
EBITDA
$
5,454
Total Debt
$
5,568
Lease and other financing obligations
605
Less: Cash and cash equivalents
4,307
Total net debt
$
1,866
Net debt to adjusted EBITDA
0.3
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,
2022
2021
2022
2021
Consolidated gold sales, net
$
2,722
$
2,630
$
5,236
$
5,112
Consolidated copper sales, net
76
80
175
132
Consolidated silver sales, net
140
175
296
343
Consolidated lead sales, net
28
43
72
87
Consolidated zinc sales, net
92
137
302
263
Total sales
$
3,058
$
3,065
$
6,081
$
5,937
Three Months Ended June 30,
2022
Gold
Copper
Silver
Lead
Zinc
(ounces)
(pounds)
(ounces)
(pounds)
(pounds)
Consolidated sales:
Gross before provisional
pricing and streaming impact
$
2,754
$
102
$
148
$
35
$
150
Provisional pricing
mark-to-market
(21
)
(23
)
(15
)
(6
)
(40
)
Silver streaming
amortization
—
—
20
—
—
Gross after provisional pricing
and streaming impact
2,733
79
153
29
110
Treatment and refining
charges
(11
)
(3
)
(13
)
(1
)
(18
)
Net
$
2,722
$
76
$
140
$
28
$
92
Consolidated ounces (thousands)/pounds
(millions) sold
1,482
25
8,066
35
85
Average realized price (per ounce/pound):
(1)
Gross before provisional
pricing and streaming impact
$
1,858
$
4.03
$
18.41
$
0.99
$
1.76
Provisional pricing
mark-to-market
(14
)
(0.92
)
(1.81
)
(0.16
)
(0.47
)
Silver streaming
amortization
—
—
2.45
—
—
Gross after provisional pricing
and streaming impact
1,844
3.11
19.05
0.83
1.29
Treatment and refining
charges
(8
)
(0.12
)
(1.63
)
(0.03
)
(0.21
)
Net
$
1,836
$
2.99
$
17.42
$
0.80
$
1.08
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
1
Per ounce/pound measures may not
recalculate due to rounding.
Six Months Ended June 30,
2022
Gold
Copper
Silver
Lead
Zinc
(ounces)
(pounds)
(ounces)
(pounds)
(pounds)
Consolidated sales:
Gross before provisional
pricing and streaming impact
$
5,256
$
194
$
296
$
79
$
356
Provisional pricing
mark-to-market
2
(14
)
(12
)
(5
)
(18
)
Silver streaming
amortization
—
—
39
—
—
Gross after provisional pricing
and streaming impact
5,258
180
323
74
338
Treatment and refining
charges
(22
)
(5
)
(27
)
(2
)
(36
)
Net
$
5,236
$
175
$
296
$
72
$
302
Consolidated ounces (thousands)/pounds
(millions) sold
2,811
46
15,718
77
205
Average realized price (per ounce/pound):
(1)
Gross before provisional
pricing and streaming impact
$
1,870
$
4.24
$
18.89
$
1.03
$
1.74
Provisional pricing
mark-to-market
1
(0.31
)
(0.75
)
(0.06
)
(0.09
)
Silver streaming
amortization
—
—
2.45
—
—
Gross after provisional pricing
and streaming impact
1,871
3.93
20.59
0.97
1.65
Treatment and refining
charges
(8
)
(0.12
)
(1.74
)
(0.03
)
(0.18
)
Net
$
1,863
$
3.81
$
18.85
$
0.94
$
1.47
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.
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 Condensed 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 Condensed 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,
2022
2021
2022
2021
Consolidated gold sales, net
$
2,722
$
2,630
$
5,236
$
5,112
Consolidated other metal sales, net
336
435
845
825
Sales
$
3,058
$
3,065
$
6,081
$
5,937
Costs applicable to sales
$
1,708
$
1,281
$
3,143
$
2,528
Less: Consolidated other metal sales,
net
(336
)
(435
)
(845
)
(825
)
By-Product costs applicable to
sales
$
1,372
$
846
$
2,298
$
1,703
Gold sold (thousand ounces)
1,482
1,444
2,811
2,861
Total Gold CAS per ounce
(by-product) (1)
$
926
$
586
$
818
$
595
Total AISC
$
2,205
$
1,761
$
4,091
$
3,501
Less: Consolidated other metal sales,
net
(336
)
(435
)
(845
)
(825
)
By-Product AISC
$
1,869
$
1,326
$
3,246
$
2,676
Gold sold (thousand ounces)
1,482
1,444
2,811
2,861
Total Gold AISC per ounce
(by-product) (1)
$
1,261
$
918
$
1,155
$
935
1
Per ounce measures may not recalculate due
to rounding.
Conference Call Information
A conference call will be held on Monday, July 25, 2022
at 10:00 a.m. Eastern Time (8:00 a.m. Mountain Time); it
will also be carried on the Company’s website.
Conference Call Details
Dial-In Number
844.200.6205
Intl. Dial-In Number
929.526.1599
Dial-In Access Code
408771
Conference Name
Newmont
Replay Number
866.813.9403
Intl. Replay Number
44.204.525.0658
Replay Access Code
870232
Webcast Details Title: Newmont
Second Quarter 2022 Earnings Conference Call URL:
https://events.q4inc.com/attendee/715196742
The second quarter 2022 results will be available before the
market opens on Monday, July 25, 2022, 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,”
or “potential.” Forward-looking statements in this news release may
include, without limitation, (i) estimates of future production and
sales, including production outlook, average future production and
upside potential; (ii) estimates of future costs applicable to
sales and all-in sustaining costs; (iii) estimates of future
capital expenditures, including development and sustaining capital;
(iv) expectations regarding the Tanami Expansion 2, Ahafo North,
Yanacocha Sulfides, Pamour and Cerro Negro District Expansion 1
projects, including, without limitation, expectations for
production, milling, costs applicable to sales and all-in
sustaining costs, capital costs, mine life extension, construction
completion, commercial production and other timelines; (v)
expectations regarding future investments or divestitures; (vi)
expectations regarding free cash flow and returns to stockholders,
including with respect to future dividends and future share
repurchases; and (vii) other outlook. Estimates or expectations of
future events or results are based upon certain assumptions, which
may prove to be incorrect. Such assumptions, include, but are not
limited to: (i) there being no significant change to current
geotechnical, metallurgical, hydrological and other physical
conditions; (ii) permitting, development, operations and expansion
of operations and projects being consistent with current
expectations and mine plans; (iii) political developments in any
jurisdiction in which the Company operates being consistent with
its current expectations; (iv) certain exchange rate assumptions;
(v) certain price assumptions for gold, copper, silver, zinc, lead
and oil; (vi) prices for key supplies; (vii) the accuracy of
current mineral reserve and mineralized material estimates; and
(viii) other planning assumptions. Uncertainties relating to the
impacts of Covid-19, include, without limitation, general
macroeconomic uncertainty and changing market conditions, changing
restrictions on the mining industry in the jurisdictions in which
we operate, the ability to operate following changing governmental
restrictions on travel and operations (including, without
limitation, the duration of restrictions, including access to
sites, ability to transport and ship doré, access to processing and
refinery facilities, impacts to international trade, impacts to
supply chain, including price, availability of goods, ability to
receive supplies and fuel, impacts to productivity and operations
in connection with decisions intended to protect the health and
safety of the workforce, their families and neighboring
communities), the impact of additional waves or variations of
Covid, and the availability and impact of Covid vaccinations in the
areas and countries in which we operate. Such uncertainties could
result in operating sites being placed into care and maintenance
and impact estimates, costs and timing of projects. Although the
Company does not currently have operations in Ukraine, Russia or
other parts of Europe, Russia’s invasion of Ukraine has resulted in
uncertainties in the market which could impact certain planning
assumptions, including, but not limited to commodity and currency
prices, costs and supply chain availabilities. Investors are
reminded that future dividends beyond the dividend payable on
September 22, 2022 to holders of record at the close of business on
September 8, 2022 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, 2021 and the Company's Quarterly Report on
Form 10-Q for the quarter ended June 30, 2022, each filed with the
U.S. Securities and Exchange Commission (the “SEC”), under the
heading “Risk Factors", available on the SEC website or
www.newmont.com. The Company does not undertake any obligation to
release publicly revisions to any “forward-looking statement,”
including, without limitation, outlook, to reflect events or
circumstances after the date of this news release, or to reflect
the occurrence of unanticipated events, except as may be required
under applicable securities laws. Investors should not assume that
any lack of update to a previously issued “forward-looking
statement” constitutes a reaffirmation of that statement. Continued
reliance on “forward-looking statements” is at investors’ own
risk.
Notice Regarding Reserve and
Resource:
Unless otherwise stated herein, the reserves stated in this
release represent estimates at December 31, 2021, which could be
economically and legally extracted or produced at the time of the
reserve determination. Estimates of proven and probable reserves
are subject to considerable uncertainty. Such estimates are, or
will be, to a large extent, based on metal prices and
interpretations of geologic data obtained from drill holes and
other exploration techniques, which data may not necessarily be
indicative of future results. Additionally, resource does not
indicate proven and probable reserves as defined by the SEC or the
Company’s standards. Estimates of measured, indicated and inferred
resource are subject to further exploration and development, and
are, therefore, subject to considerable uncertainty. Inferred
resources, in particular, have a great amount of uncertainty as to
their existence and their economic and legal feasibility. The
Company cannot be certain that any part or parts of the resource
will ever be converted into reserves. For additional information on
our reserves and resources, please see Item 2 of the Company’s Form
10-K, filed on February 24, 2022 with the SEC.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220725005207/en/
Media Contact Courtney Boone
303.837.5159 courtney.boone@newmont.com
Investor Contact Daniel Horton
303.837.5468 daniel.horton@newmont.com
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