Newmont Corporation (NYSE: NEM, TSX: NGT) (Newmont or the
Company) today announced first quarter 2023 results and declared a
first quarter dividend of $0.40 per share.
Delivered First Quarter Production as Expected; Improving
Production in Second Quarter*
- Produced 1.27 million gold ounces and 288 thousand
co-product gold equivalent ounces (GEOs)** from copper, silver,
lead and zinc
- Reported gold Costs Applicable to Sales (CAS) of $1,025 per
ounce and gold All-In Sustaining Costs (AISC) of $1,376 per
ounce***; impacted by lower production volumes and continued
global cost pressures; costs expected to decrease throughout the
year
- On track to achieve full-year guidance of between 5.7
and 6.3 million ounces of attributable gold production with Gold
AISC between $1,150 and $1,250 per ounce
- Generated $481 million of cash from continuing operations
and reported $(45) million of Free Cash Flow***; impacted by
lower production volumes, timing of working capital changes and
higher capital spend
- Reported Net Income of $363 million, with Adjusted Net
Income (ANI)*** of $0.40 per share and Adjusted EBITDA*** of $990
million; lower production volumes offset by higher realized
gold prices
- Ended the quarter with $2.7 billion of consolidated cash,
$797 million of short-term time deposits and $6.5 billion of
liquidity; reported net debt to adjusted EBITDA ratio of
0.6x***
- Sold common shares of Triple Flag Precious Metals
Corporation for $179 million, further optimizing Newmont's
equity portfolio acquired with the Goldcorp transaction in
2019
- Published 19th Annual Sustainability Report and 2nd Annual
Taxes and Royalties Contribution Report, providing a
transparent review of Newmont's ESG performance and an overview of
Newmont's tax strategy and economic contributions
First Quarter Dividend Declared Within Established
Framework****
- Board of Directors declared a dividend of $0.40 per share of
common stock for the first quarter of 2023, payable on June 15,
2023 to holders of record at the close of business on June 1,
2023
- Annualized dividend payout range for 2023 of $1.40 to $1.80
per share****; subject to quarterly approval by Board of
Directors
- Based on a sustainable base dividend of $1.00 per
share payable at base reserves price and an incremental
dividend payout of $0.60 per share; Q1 2023 dividend payout
calibrated at the mid-point of the $1,700 per ounce annualized
payout range
"Since transforming Newmont's business four years ago, we
continue to lead the gold sector in sustainability, profitable gold
production and shareholder returns due to the strength of our team
and the quality of our world-class portfolio. During the first
quarter, we delivered on our expected results, generated nearly
$1.0 billion in adjusted EBITDA and returned $318 million to
shareholders through our industry-leading dividend framework. We
remain on track to achieve our full year guidance ranges and build
upon our track record of safely delivering long-term value to all
of our stakeholders through sustainable and responsible
mining."
- Tom Palmer, Newmont President and Chief Executive
Officer
*See discussion of outlook and cautionary
statement at the end of this release regarding forward-looking
statements.
**Gold equivalent ounces (GEOs) calculated
using Gold ($1,400/oz.), Copper ($3.50/lb.), Silver ($20.00/oz.),
Lead ($1.00/lb.) and Zinc ($1.20/lb.) pricing for 2023.
***Non-GAAP metrics; see reconciliations
at the end of this release.
****Expectations regarding 2023 dividend
levels are forward-looking statements. The dividend framework is
non-binding and an annualized dividend has not been declared by the
Board. The declaration and payment of future quarterly dividends
remains at the discretion of the Board of Directors and will depend
on the Company’s financial results, cash flow and cash
requirements, future prospects, and other factors deemed relevant
by the Board. See cautionary statement at the end of this
release.
First Quarter Results In-Line with Previously Signaled
Expectations
Q1'23
Q4'22
Q1'22
Average realized gold price ($ per
ounce)
$
1,906
$
1,758
$
1,892
Attributable gold production (million
ounces)1
1.27
1.63
1.34
Gold costs applicable to sales (CAS) ($
per ounce)2
$
1,025
$
940
$
890
Gold all-in sustaining costs (AISC) ($ per
ounce)2
$
1,376
$
1,215
$
1,156
GAAP net income (loss) from continuing
operations ($ millions)
$
339
$
(1,488
)
$
432
Adjusted net income ($ millions)3
$
320
$
348
$
546
Adjusted net income per share ($/diluted
share)3
$
0.40
$
0.44
$
0.69
Adjusted EBITDA ($ millions)3
$
990
$
1,161
$
1,390
Cash flow from continuing operations ($
millions)
$
481
$
1,010
$
689
Capital expenditures ($ millions)4
$
526
$
646
$
437
Free cash flow ($ millions)5
$
(45
)
$
364
$
252
FIRST QUARTER 2023 RESULTS DRIVERS
Production volumes came in line with our previously signaled
expectations for the first quarter, with higher than signaled
production at Tanami and Ahafo, partially offset by lower than
planned production at our non-managed joint ventures. Compared to
the fourth quarter, earnings were in-line despite lower sales
volumes, which were partially offset by higher realized gold
prices, including $17 million of favorable mark-to-market
adjustments on provisionally-priced gold ounces. Gold CAS per ounce
was higher than the fourth quarter due to lower sales volumes,
partially offset by lower gross costs from easing inflation on
commodities, materials and supplies. Advanced projects and
exploration spend was lower than the fourth quarter, but is
expected to be higher in the second quarter and the remainder of
the year.
Cash flow from continuing operations was $481 million, which was
lower than the fourth quarter due to lower sales volumes, partially
offset by higher gold prices. Cash flow from continuing operations
was also impacted by approximately $360 million of unfavorable
working capital movements, including $187 million of cash tax
payments, approximately $170 million of build-up of stockpiles and
finished goods inventory partially due to the timing of concentrate
sales at Peñasquito, and approximately $160 million in timing of
payments on accrued liabilities which typically occurs in the first
quarter. In addition, we reinvested $526 million in capital spend
as we continue to progress our near-term projects.
FIRST QUARTER 2023 FINANCIAL AND PRODUCTION SUMMARY
Attributable gold production1 decreased 5 percent to
1,273 thousand ounces from the prior year quarter primarily due to
lower mill recovery and ore grade milled at Peñasquito as a result
of the planned mine sequencing, the impact of the mill shutdown at
Tanami due to the rainfall event and lower production at Nevada
Gold Mines. These decreases were partially offset by higher ore
grade milled at Ahafo and higher mill throughput and ore grade
milled at Éléonore. Attributable gold sales versus
production was impacted by the timing of concentrate shipments
at Peñasquito. This concentrate has been sold and the revenue will
be realized in the second quarter.
Gold CAS totaled $1.2 billion for the quarter. Gold
CAS per ounce2 increased 15 percent to $1,025 per ounce from
the prior year quarter primarily due to lower gold sales volumes
and higher direct operating costs as a result of inflationary
pressures, driven by higher labor costs and an increase in
commodity input costs.
Gold AISC per ounce2 increased 19 percent to $1,376 per
ounce from the prior year quarter primarily due to higher CAS per
gold ounce and higher sustaining capital spend.
Attributable gold equivalent ounce (GEO) production from
other metals decreased 18 percent to 288 thousand ounces
primarily due to lower mill recovery at Peñasquito. This decrease
was partially offset by higher ore grade milled at Boddington.
Attributable GEO sales versus production was impacted by the
timing of concentrate shipments at Peñasquito. This concentrate has
been sold and the revenue will be realized in the second
quarter.
CAS from other metals totaled $243 million for the
quarter. CAS per GEO2 increased 28 percent to $918 per ounce
from the prior year quarter primarily due to lower other metal
sales at Peñasquito, as well as higher direct operating costs as a
result of inflationary pressures, driven by higher labor costs and
an increase in commodity input costs.
AISC per GEO2 increased 33 percent to $1,322 per ounce
primarily due to higher CAS per GEO and higher sustaining capital
spend.
Average realized gold price was $1,906, an increase of
$14 per ounce over the prior year quarter. Average realized gold
price includes $1,901 per ounce of gross price received, a
favorable impact of $14 per ounce mark-to-market on
provisionally-priced sales and reductions of $9 per ounce for
treatment and refining charges.
Revenue decreased 11 percent from the prior year quarter
to $2.7 billion primarily due to lower sales volumes for all metals
except copper and lower average realized co-product metal
prices.
Net income from continuing operations attributable to Newmont
stockholders was $339 million or $0.42 per diluted share, a
decrease of $93 million from the prior year quarter primarily due
to lower sales volumes, lower average realized co-product metal
prices and higher CAS predominately resulting from cost inflation
impacts. These decreases were partially offset by a non-cash
pension settlement charge recognized in 2022, lower depreciation
and amortization, and the net gain of $36 million recognized on the
exchange and subsequent sale of Triple Flag Precious Metals
Corporation shares compared to the loss on the sale of the La Zanja
equity method investment in 2022.
Adjusted net income3 was $320 million or $0.40 per
diluted share, compared to $546 million or $0.69 per diluted share
in the prior year quarter. Primary adjustments to first quarter net
income include changes in the fair value of investments of $41
million and the net gain of $36 million recognized on the exchange
and subsequent sale of Triple Flag Precious Metals Corporation
shares, as well as valuation allowance and other tax
adjustments.
Adjusted EBITDA3 decreased 29 percent to $1.0 billion for
the quarter, compared to $1.4 billion for the prior year
quarter.
Capital expenditures4 increased 20 percent from the prior
year quarter to $526 million primarily due to higher sustaining
capital spend. Development capital expenditures in 2023 primarily
relate to Tanami Expansion 2, Yanacocha Sulfides, Ahafo North,
Pamour and Cerro Negro District Expansion 1.
Consolidated operating cash flow from continuing
operations decreased 30 percent from the prior year quarter to
$481 million primarily due to a decrease in revenue due to lower
sales volumes and lower average realized co-product metal prices,
an increase in operating cash expenditures resulting from the
impacts of inflation on input costs and a build-up of inventory
compared to the same period in 2022, primarily at Peñasquito.
Free Cash Flow5 decreased to $(45) million from $252
million in the prior year quarter primarily due to lower operating
cash flow and higher capital expenditures.
Balance sheet and liquidity remained strong in the first
quarter, ending the quarter with $2.7 billion of consolidated cash
and $797 million of time deposits with a maturity of more than
three months but less than one year, with approximately $6.5
billion of total liquidity; reported net debt to adjusted EBITDA of
0.6x6.
Nevada Gold Mines (NGM) attributable gold production was
261 thousand ounces, with CAS of $1,109 per ounce2 and AISC of
$1,405 per ounce2 for the first quarter. NGM EBITDA6 was $191
million.
Pueblo Viejo (PV) attributable gold production was 60
thousand ounces for the quarter. Cash distributions received for
the Company's equity method investment in Pueblo Viejo totaled $26
million in the first quarter. Capital contributions of $36 million
were made during the quarter related to the expansion project at
Pueblo Viejo.
_____________________________________
1 Attributable gold production includes 60
thousand ounces for the first quarter of 2023, 65 thousand ounces
for the fourth quarter of 2022 and 69 thousand ounces for the first
quarter of 2022 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 Net income (loss) attributable to
Newmont stockholders.
4 Capital expenditures refers to Additions
to property plant and mine development from the Consolidated
Statements of Cash Flows.
5 Non-GAAP measure. See end of this
release for reconciliation to Net cash provided by operating
activities.
6 Non-GAAP measure. See end of this
release for reconciliation.
Progressing Profitable Near-Term Projects from Unmatched
Organic Pipeline
Newmont’s project pipeline supports stable production with
improving margins and mine life1. Newmont's 2023 and longer-term
outlook includes current development capital costs and production
related to Tanami Expansion 2, Ahafo North, Pamour and Cerro Negro
District Expansion 1. Development capital outlook for 2023 and 2024
includes spend related to the Yanacocha Sulfides project ahead of
the investment decision planned for late 2024; additional
development capital spend and all metal production for Yanacocha
Sulfides has been excluded from longer-term outlook beginning in
2025.
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 by
extending 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, bringing average all-in sustaining costs to $900 to $1,000
per ounce for Tanami (2026-2030). Commercial production for the
project is expected in the second half of 2025. Total capital costs
are estimated to be between $1.2 and $1.3 billion. Development
costs (excluding capitalized interest) since approval were $551
million, of which $52 million related to the three months ended
March 31, 2023.
- Ahafo North (Africa) expands our
existing footprint in Ghana with four open pit mines and a
stand-alone mill located approximately 30 kilometers from the
Company’s Ahafo South operations. The project is expected to add
between 275,000 and 325,000 ounces per year with all-in sustaining
costs of $800 to $900 per ounce for the first five full years of
production. Ahafo North is the best unmined gold deposit in West
Africa with approximately 3.8 million ounces of Reserves and 1.4
million ounces of Measured, Indicated and Inferred Resources2 and
significant upside potential to extend beyond Ahafo North’s current
13-year mine life. Commercial production for the project is
expected in the second half of 2025. Total capital costs are
estimated to be between $950 and $1,050 million. Development costs
(excluding capitalized interest) since approval were $254 million,
of which $42 million related to the three months ended March 31,
2023.
- 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 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. In the third quarter
of 2022, Newmont announced the decision to delay the project in
order to manage project execution risk, move out of a period of
significant inflation and to balance development capital cash
flows. Management continues to assess the execution and project
timeline, up to and including transitioning Yanacocha operations
into full closure; the project remains subject to an investment
decision. Development capital spend on the project is expected to
be approximately $300 to $350 million per year in 2023 and 2024
related to advanced engineering, procurement and completing camp
construction.
- Pamour (North America) extends the
life of Porcupine and maintains production beyond 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 late 2023 as opportunities have
been identified to extend production from current operations,
allowing for a deferral of project spending. Formal updates to
capital estimates and estimated project completion will be provided
closer to the investment decision.
- 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 and provides a platform for
further exploration and future growth through additional
expansions. Development capital costs for the project are estimated
to be between $350 and $450 million.
_____________________________________
1 Project estimates remain subject to
change based upon uncertainties, including future market
conditions, continued impacts from the COVID-19 pandemic, the
Russian invasion of Ukraine, inflation, commodities and raw
materials prices, supply chain disruptions, labor markets,
engineering and mine plan assumptions, future funding decisions,
consideration of strategic capital allocation 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.
2 Total resources presented for Ahafo
North includes Measured and Indicated resources of 910 thousand
gold ounces and Inferred resources of 490 thousand gold ounces. See
cautionary statement at the end of this release.
2023 Outlook Remains Second-Half Weighted as Previously
Signaled
Newmont’s outlook reflects increasing gold production and
ongoing investment into its operating assets and most promising
growth prospects. Newmont's reserves and mine planning gold price
assumption has been set at $1,400 per ounce. 2023 outlook assumes a
$1,700 per ounce revenue gold price for CAS and AISC, including
royalties and production taxes. For 2023, Newmont has assumed
normalizing levels of inflation, improving throughout the year,
with a year-over-year average escalation rate of approximately
3%.
Outlook includes development capital, costs and production
related to Tanami Expansion 2, Ahafo North, Pamour and Cerro Negro
District Expansion 1. Development capital outlook for 2023 and 2024
includes spend related to the Yanacocha Sulfides project ahead of
the investment decision planned for late 2024; additional
development capital spend and all metal production for Yanacocha
Sulfides has been excluded from longer-term outlook beginning in
2025.
Please see the cautionary statement and footnotes for additional
information. For a more detailed discussion, see the Company’s 2023
and Longer-Term Outlook released on February 23, 2023, available on
www.newmont.com.
2023 SEASONALITY*
Newmont Managed Operations
Attributable Gold Production (Koz)
FY 2023 Outlook
Q2 2023E (% of Full
Year)
Boddington
740 - 820
28%
Ahafo
675 - 745
23%
Tanami
420 - 460
30%
Peñasquito
330 - 370
18%
Cerro Negro
315 - 345
24%
Akyem
315 - 345
29%
Porcupine
285 - 315
21%
Éléonore
265 - 295
24%
Yanacocha
255 - 285
26%
Merian
235 - 265
23%
Musselwhite
200 - 220
23%
CC&V
160 - 180
21%
*Estimated 2023 seasonality remains
subject to change and represents management’s expectations of
future production results as of April 27, 2023.
In the second quarter of 2023, we expect to produce
approximately 24 percent of our full year gold guidance,
primarily driven by the following sites:
- Tanami - Higher milling rates expected in the second
quarter, with continued recovery from the first quarter rainfall
event
- Boddington - Higher grades expected in the second
quarter; stripping expected to begin in the second half of the
year
- Ahafo - Higher grades expected in the second quarter due
to the planned mine sequence and the progression of work at Subika
Underground
- Akyem - Higher grades expected in the second quarter due
to the planned mine sequence
- Peñasquito - Lower production expected in the second
quarter due to the planned mine sequence resulting in lower grades
from the Chile Colorado pit
We expect to deliver approximately 55 percent of our full
year gold production guidance in the second half of the
year.
FIVE YEAR OUTLOOK
Guidance Metrics
2023E
2024E
2025E
2026E
2027E
Gold ($1,700/oz price
assumption)
Attributable Gold Production (Moz)
5.7 - 6.3
5.9 - 6.5
5.9 - 6.5
6.1 - 6.7
6.1 - 6.7
Gold CAS ($/oz)*
$870 - $970
$850 - $950
$780 - $880
$750 - $850
$750 - $850
Gold AISC ($/oz)*
$1,150 - $1,250
$1,100 - $1,200
$1,000 - $1,100
$1,000 - $1,100
$1,000 - $1,100
Copper ($3.50/lb price
assumption)
Copper Production (Mlb)
95 - 105
85 - 95
45 - 55
45 - 55
55 - 65
Copper CAS ($/lb)*
$1.85 - $2.15
Copper AISC ($/lb)*
$2.35 - $2.65
Silver ($20/oz price
assumption)
Silver Production (Moz)
31 - 35
32 - 36
35 - 39
28 - 32
30 - 34
Silver CAS ($/oz)*
$11.10 - $12.10
Silver AISC ($/oz)*
$15.50 - $16.50
Lead ($0.90/lb price
assumption)
Lead Production (Mlb)
170 - 190
190 - 210
210 - 230
160 - 180
250 - 270
Lead CAS ($/lb)*
$0.55 - $0.65
Lead AISC ($/lb)*
$0.70 - $0.80
Zinc ($1.35/lb price
assumption)
Zinc Production (Mlb)
420 - 460
550 - 590
580 - 620
460 - 500
400 - 440
Zinc CAS ($/lb)*
$0.65 - $0.75
Zinc AISC ($/lb)*
$1.05 - $1.15
Capital
Sustaining Capital**
$1,000 - $1,200
$1,000 - $1,200
$1,000 - $1,200
$1,000 - $1,200
$1,000 - $1,200
Development Capital**
$1,200 - $1,400
$1,200 - $1,400
$800 - $1,000
$500 - $700
$300 - $500
*Consolidated basis; **Attributable
basis
CONSOLIDATED EXPENSE OUTLOOK
Guidance Metric ($M)
2023E
Exploration & Advanced Projects
$475 - $525
General & Administrative
$260 - $290
Interest Expense
$200 - $220
Depreciation & Amortization
$2,200 - $2,400
Adjusted Tax Rate a,b
32% - 36%
a The adjusted tax rate excludes certain
items such as tax valuation allowance adjustments.
b Assuming average prices of $1,700 per
ounce for gold, $3.50 per pound for copper, $20.00 per ounce for
silver, $0.90 per pound for lead, and $1.35 per pound for zinc and
achievement of current production, sales and cost estimates, we
estimate our consolidated adjusted effective tax rate related to
continuing operations for 2023 will be between 32%-36%.
ASSUMPTIONS AND SENSITIVITIES
Assumption
Change (-/+)
FCF Impact ($M)
(+/-)
AISC Impact ($/oz)
(-/+)
Gold ($/oz)
$1,700
$100
$400
$5
Australian Dollar
$0.70
$0.05
$60
$15
Canadian Dollar
$0.77
$0.05
$35
$10
Oil ($/bbl)
$90
$10
$20
$5
Copper ($/lb)
$3.50
$0.25
$15
$—
Silver ($/oz)
$20.00
$1.00
$15
$2
Lead ($/lb)
$0.90
$0.10
$10
$—
Zinc ($/lb)
$1.35
$0.10
$30
$—
Assuming a 35% incremental tax rate, a $100 per ounce increase
in gold price would deliver an expected $400 million improvement in
attributable free cash flow. Included within the attributable free
cash flow sensitivity is a royalty and production tax impact of $5
per ounce for every $100 per ounce change in gold price.
2023 OPERATING COSTS BY CATEGORY
Percent of
Total*
Change in Cost
(-/+)
FCF Impact ($M)
(+/-)
AISC Impact ($/oz)
(-/+)
Labor Costs
50%
5%
$90
$25
Materials & Consumables
30%
5%
$50
$15
Fuel & Energy
15%
5%
$30
$10
*"Other” category of 5% primarily includes
freight, technology-related costs, employee administrative costs,
rents and operating leases.
2023 Site Outlooka
2023 Outlook
Consolidated Production
(Koz)
Attributable Production
(Koz)
Consolidated CAS
($/oz)
Consolidated All-In
Sustaining Costs b ($/oz)
Attributable Sustaining
Capital Expenditures ($M)
Attributable Development
Capital Expenditures ($M)
CC&V
160 - 180
160 - 180
1,150 - 1,250
1,580 - 1,680
25 - 35
—
Musselwhite
200 - 220
200 - 220
860 - 960
1,290 - 1,390
65 - 75
—
Porcupine
285 - 315
285 - 315
950 - 1,050
1,250 - 1,350
45 - 55
100 - 120
Éléonore
265 - 295
265 - 295
960 - 1,060
1,300 - 1.400
55 - 65
—
Peñasquito
330 - 370
330 - 370
840 - 940
1,110 - 1,210
135 - 145
—
Merianc
315 - 345
235 - 265
980 - 1,080
1,230 - 1,330
35 - 45
—
Cerro Negro
315 - 345
315 - 345
850 - 950
1,060 - 1,160
45 - 55
110 - 130
Yanacocha
255 - 285
255 - 285
1,370 - 1,470
1,620 - 1,720
25 - 35
320 - 360
Boddington
740 - 820
740 - 820
800 - 900
960 - 1,060
95 - 105
—
Tanami
420 - 460
420 - 460
770 - 870
1,130 - 1,230
115 - 125
340 - 380
Ahafo
675 - 745
675 - 745
850 - 950
1,010 - 1,110
75 - 85
5 - 15
Akyem
315 - 345
315 - 345
850 - 950
1,110 - 1,210
25 - 35
—
Ahafo North
—
—
—
—
—
245 - 275
Nevada Gold Minesd
1,190 - 1,310
1,190 - 1,310
850 - 950
1,150 - 1,250
250 - 350
50 - 150
Pueblo Viejoe
—
315 - 345
—
—
—
—
Peñasquito - Silver (Moz)
31 - 35
31 - 35
11.10 - 12.10
15.50 - 16.50
Peñasquito - Lead (Mlbs)
170 - 190
170 - 190
0.55 - 0.65
0.70 - 0.80
Peñasquito - Zinc (Mlbs)
420 - 460
420 - 460
0.65 - 0.75
1.05 - 1.15
Boddington - Copper (Mlbs)
95 - 105
95 - 105
1.85 - 2.15
2.35 - 2.65
a 2023 outlook projections are considered
forward-looking statements and represent management’s good faith
estimates or expectations of future production results as of
February 23, 2023. Outlook is based upon certain assumptions,
including, but not limited to, metal prices, oil prices, certain
exchange rates and other assumptions. For example, 2023 Outlook
assumes $1,700/oz Au, $3.50/lb Cu, $20.00/oz Ag, $1.35/lb Zn,
$0.90/lb Pb, $0.70 USD/AUD exchange rate, $0.77 USD/CAD exchange
rate and $90/barrel WTI. Production, CAS, AISC and capital
estimates exclude projects that have not yet been approved, except
for Yanacocha Sulfides, Pamour and Cerro Negro District Expansion 1
which are included in Outlook. The potential impact on inventory
valuation as a result of lower prices, input costs, and project
decisions are not included as part of this Outlook. Assumptions
used for purposes of Outlook may prove to be incorrect and actual
results may differ from those anticipated, including variation
beyond a +/-5% range. Outlook cannot be guaranteed. As such,
investors are cautioned not to place undue reliance upon Outlook
and forward-looking statements as there can be no assurance that
the plans, assumptions or expectations upon which they are placed
will occur. Amounts may not recalculate to totals due to rounding.
See cautionary at the end of this release.
b All-in sustaining costs (AISC) as used
in the Company’s Outlook is a non-GAAP metric; see below for
further information and reconciliation to consolidated 2023 CAS
outlook.
c Consolidated production for Merian is
presented on a total production basis for the mine site;
attributable production represents a 75% interest for Merian.
d Represents the ownership interest in the
Nevada Gold Mines (NGM) joint venture. NGM is owned 38.5% by
Newmont and owned 61.5% and operated by Barrick. The Company
accounts for its interest in NGM using the proportionate
consolidation method, thereby recognizing its pro-rata share of the
assets, liabilities and operations of NGM.
e Attributable production includes
Newmont’s 40% interest in Pueblo Viejo, which is accounted for as
an equity method investment.
Three Months Ended March
31,
Operating Results
2023
2022
% Change
Attributable Sales (koz)
Attributable gold ounces sold (1)
1,188
1,291
(8
)%
Attributable gold equivalent ounces
sold
265
350
(24
)%
Average Realized Price ($/oz,
$/lb)
Average realized gold price
$
1,906
$
1,892
1
%
Average realized copper price
$
4.18
$
4.84
(14
)%
Average realized silver price
$
19.17
$
20.36
(6
)%
Average realized lead price
$
0.86
$
1.06
(19
)%
Average realized zinc price
$
1.18
$
1.75
(33
)%
Attributable Production (koz)
CC&V
48
35
37
%
Musselwhite
41
32
28
%
Porcupine
66
59
12
%
Éléonore
66
46
43
%
Peñasquito
85
137
(38
)%
Merian (75%)
62
76
(18
)%
Cerro Negro
67
68
(1
)%
Yanacocha (2)
56
54
4
%
Boddington
199
182
9
%
Tanami
63
100
(37
)%
Ahafo
128
107
20
%
Akyem
71
91
(22
)%
Nevada Gold Mines
261
288
(9
)%
Total Gold (excluding equity method
investments)
1,213
1,275
(5
)%
Pueblo Viejo (40%) (3)
60
69
(13
)%
Total Gold
1,273
1,344
(5
)%
Peñasquito
224
299
(25
)%
Boddington
64
51
25
%
Total Gold Equivalent Ounces
288
350
(18
)%
CAS Consolidated ($/oz, $/GEO)
CC&V
$
1,062
$
1,426
(26
)%
Musselwhite
$
1,313
$
1,355
(3
)%
Porcupine
$
1,071
$
1,095
(2
)%
Éléonore
$
1,095
$
1,249
(12
)%
Peñasquito
$
1,199
$
651
84
%
Merian (75%)
$
1,028
$
845
22
%
Cerro Negro
$
1,146
$
974
18
%
Yanacocha
$
1,067
$
985
8
%
Boddington
$
841
$
816
3
%
Tanami
$
936
$
661
42
%
Ahafo
$
992
$
985
1
%
Akyem
$
810
$
737
10
%
Nevada Gold Mines
$
1,109
$
899
23
%
Total Gold
$
1,025
$
890
15
%
Total Gold (by-product)
$
916
$
697
31
%
Peñasquito
$
954
$
695
37
%
Boddington
$
809
$
833
(3
)%
Total Gold Equivalent Ounces
$
918
$
717
28
%
(1) Attributable gold ounces from the
Pueblo Viejo mine, an equity method investment, are not included in
attributable gold ounces sold.
(2) The Company recognized amounts
attributable to noncontrolling interest for Yanacocha during the
period prior to acquiring Sumitomo Corporation's 5% interest in the
second quarter of 2022.
(3) 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.
Three Months Ended March
31,
Operating Results (continued)
2023
2022
% Change
AISC Consolidated ($/oz, $/GEO)
CC&V
$
1,375
$
1,676
(18
)%
Musselwhite
$
1,681
$
1,642
2
%
Porcupine
$
1,412
$
1,296
9
%
Éléonore
$
1,420
$
1,557
(9
)%
Peñasquito
$
1,539
$
843
83
%
Merian (75%)
$
1,235
$
991
25
%
Cerro Negro
$
1,379
$
1,252
10
%
Yanacocha
$
1,332
$
1,163
15
%
Boddington
$
1,035
$
931
11
%
Tanami
$
1,219
$
1,012
20
%
Ahafo
$
1,366
$
1,223
12
%
Akyem
$
1,067
$
942
13
%
Nevada Gold Mines
$
1,405
$
1,086
29
%
Total Gold
$
1,376
$
1,156
19
%
Total Gold (by-product)
$
1,354
$
1,036
31
%
Peñasquito
$
1,351
$
951
42
%
Boddington
$
1,019
$
959
6
%
Total Gold Equivalent Ounces
$
1,322
$
997
33
%
NEWMONT CORPORATION
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS
(unaudited, in millions except
per share)
Three Months Ended
March 31,
2023
2022
Sales
$
2,679
$
3,023
Costs and expenses:
Costs applicable to sales (1)
1,482
1,435
Depreciation and amortization
461
547
Reclamation and remediation
66
61
Exploration
48
38
Advanced projects, research and
development
35
44
General and administrative
74
64
Other expense, net
8
35
2,174
2,224
Other income (expense):
Other income (loss), net
99
(109
)
Interest expense, net of capitalized
interest
(65
)
(62
)
34
(171
)
Income (loss) before income and mining tax
and other items
539
628
Income and mining tax benefit
(expense)
(213
)
(214
)
Equity income (loss) of affiliates
25
39
Net income (loss) from continuing
operations
351
453
Net income (loss) from discontinued
operations
12
16
Net income (loss)
363
469
Net loss (income) attributable to
noncontrolling interests
(12
)
(21
)
Net income (loss) attributable to Newmont
stockholders
$
351
$
448
Net income (loss) attributable to Newmont
stockholders:
Continuing operations
$
339
$
432
Discontinued operations
12
16
$
351
$
448
Weighted average common shares
(millions):
Basic
794
793
Effect of employee stock-based awards
1
1
Diluted
795
794
Net income (loss) attributable to Newmont
stockholders per common share
Basic:
Continuing operations
$
0.42
$
0.54
Discontinued operations
0.02
0.02
$
0.44
$
0.56
Diluted:
Continuing operations
$
0.42
$
0.54
Discontinued operations
0.02
0.02
$
0.44
$
0.56
(1)
Excludes Depreciation and amortization and
Reclamation and remediation.
NEWMONT CORPORATION
CONDENSED CONSOLIDATED BALANCE
SHEETS
(unaudited, in
millions)
At March 31,
2023
At December 31, 2022
ASSETS
Cash and cash equivalents
$
2,657
$
2,877
Time deposits and other investments
847
880
Trade receivables
348
366
Inventories
1,067
979
Stockpiles and ore on leach pads
905
774
Other current assets
735
639
Current assets
6,559
6,515
Property, plant and mine development,
net
24,097
24,073
Investments
3,216
3,278
Stockpiles and ore on leach pads
1,691
1,716
Deferred income tax assets
170
173
Goodwill
1,971
1,971
Other non-current assets
670
756
Total assets
$
38,374
$
38,482
LIABILITIES
Accounts payable
$
648
$
633
Employee-related benefits
302
399
Income and mining taxes payable
213
199
Current lease and other financing
obligations
96
96
Other current liabilities
1,493
1,599
Current liabilities
2,752
2,926
Debt
5,572
5,571
Lease and other financing obligations
451
465
Reclamation and remediation
liabilities
6,603
6,578
Deferred income tax liabilities
1,800
1,809
Employee-related benefits
395
342
Silver streaming agreement
805
828
Other non-current liabilities
437
430
Total liabilities
18,815
18,949
Commitments and contingencies (1)
EQUITY
Common stock
1,281
1,279
Treasury stock
(261
)
(239
)
Additional paid-in capital
17,386
17,369
Accumulated other comprehensive income
(loss)
23
29
Retained earnings
948
916
Newmont stockholders' equity
19,377
19,354
Noncontrolling interests
182
179
Total equity
19,559
19,533
Total liabilities and equity
$
38,374
$
38,482
(1)
Refer to Note 17 of the Condensed
Consolidated Financial Statements for additional information.
NEWMONT CORPORATION
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
(unaudited, in
millions)
Three Months Ended
March 31,
2023
2022
Operating activities:
Net income (loss)
$
363
$
469
Non-cash adjustments:
Depreciation and amortization
461
547
Net loss (income) from discontinued
operations
(12
)
(16
)
Reclamation and remediation
61
57
Change in fair value of investments
(41
)
(39
)
Gain on asset and investment sales,
net
(36
)
35
Stock-based compensation
19
18
Deferred income taxes
15
(41
)
Charges from pension settlement
—
130
Other non-cash adjustments
13
(6
)
Net change in operating assets and
liabilities
(362
)
(465
)
Net cash provided by (used in) operating
activities of continuing operations
481
689
Net cash provided by (used in) operating
activities of discontinued operations
—
5
Net cash provided by (used in) operating
activities
481
694
Investing activities:
Proceeds from maturities of
investments
557
—
Additions to property, plant and mine
development
(526
)
(437
)
Purchases of investments
(525
)
(4
)
Proceeds from asset and investment
sales
181
9
Contributions to equity method
investees
(41
)
(52
)
Return of investment from equity method
investees
—
13
Other
12
(48
)
Net cash provided by (used in) investing
activities
(342
)
(519
)
Financing activities:
Dividends paid to common stockholders
(318
)
(436
)
Funding from noncontrolling interests
41
32
Distributions to noncontrolling
interests
(34
)
(59
)
Payments for withholding of employee taxes
related to stock-based compensation
(22
)
(36
)
Payments on lease and other financing
obligations
(16
)
(19
)
Acquisition of noncontrolling
interests
—
(300
)
Repayment of debt
—
(89
)
Other
(1
)
12
Net cash provided by (used in) financing
activities
(350
)
(895
)
Effect of exchange rate changes on cash,
cash equivalents and restricted cash
(8
)
3
Net change in cash, cash equivalents and
restricted cash
(219
)
(717
)
Cash, cash equivalents and restricted cash
at beginning of period
2,944
5,093
Cash, cash equivalents and restricted cash
at end of period
$
2,725
$
4,376
Reconciliation of cash, cash equivalents
and restricted cash:
Cash and cash equivalents
$
2,657
$
4,272
Restricted cash included in Other current
assets
1
50
Restricted cash included in Other
non-current assets
67
54
Total cash, cash equivalents and
restricted cash
$
2,725
$
4,376
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 for the year ended December 31, 2022, filed
with the SEC on February 23, 2023 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
March 31, 2023
per share data (1)
basic
diluted
Net income (loss) attributable to Newmont
stockholders
$
351
$
0.44
$
0.44
Net loss (income) attributable to Newmont
stockholders from discontinued operations
(12
)
(0.02
)
(0.02
)
Net income (loss) attributable to Newmont
stockholders from continuing operations
339
0.42
0.42
Change in fair value of investments
(2)
(41
)
(0.05
)
(0.05
)
(Gain) loss on asset and investment sales,
net (3)
(36
)
(0.05
)
(0.05
)
Impairment charges (4)
4
—
—
Restructuring and severance (5)
2
—
—
Other (6)
(4
)
—
—
Tax effect of adjustments (7)
16
0.02
0.02
Valuation allowance and other tax
adjustments (8)
40
0.06
0.06
Adjusted net income (loss)
$
320
$
0.40
$
0.40
Weighted average common shares (millions):
(9)
794
795
(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 related to the Company's investment in
current and non-current marketable and other equity securities.
(3)
(Gain) loss on asset and investment sales,
net, included in Other income (loss), net, primarily represents the
net gain recognized on the exchange of the previously held Maverix
investment for Triple Flag and the subsequent sale of the Triple
Flag investment. Refer to Note 10 of the Condensed Consolidated
Financial Statements for further information.
(4)
Impairment charges, included in Other
expense, net, represents non-cash write-downs of various assets
that are no longer in use and materials and supplies
inventories.
(5)
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.
(6)
Other represents income received on the
favorable settlement of certain matters that were outstanding at
the time of sale of the related investment in 2022. Amounts
included in Other income (loss), net.
(7)
The tax effect of adjustments, included in
Income and mining tax benefit (expense), represents the tax effect
of adjustments in footnotes (2) through (6), as described above,
and are calculated using the applicable regional tax rate.
(8)
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 months ended March 31,
2023 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 $10, the effects of
changes in foreign exchange rates on deferred tax assets and
liabilities of $17, net reductions to the reserve for uncertain tax
positions of $11, other tax adjustments of $2. For further
information on reductions to the reserve for uncertain tax
positions, refer to Note 8 of the Condensed Consolidated Financial
Statements.
(9)
Adjusted net income (loss) per diluted
share is calculated using diluted common shares in accordance with
GAAP.
Three Months Ended
March 31, 2022
per share data (1)
basic
diluted
Net income (loss) attributable to Newmont
stockholders
$
448
$
0.56
$
0.56
Net loss (income) attributable to Newmont
stockholders from discontinued operations
(16
)
(0.02
)
(0.02
)
Net income (loss) attributable to Newmont
stockholders from continuing operations
432
0.54
0.54
Pension settlements (2)
130
0.16
0.16
Change in fair value of investments
(3)
(39
)
(0.05
)
(0.05
)
(Gain) loss on asset and investment sales,
net (4)
35
0.04
0.04
Reclamation and remediation charges
(5)
13
0.02
0.02
Settlement costs (6)
13
0.02
0.02
Restructuring and severance, net (7)
1
—
—
Tax effect of adjustments (8)
(37
)
(0.05
)
(0.05
)
Valuation allowance and other tax
adjustments, net (9)
(2
)
0.01
0.01
Adjusted net income (loss)
$
546
$
0.69
$
0.69
Weighted average common shares (millions):
(10)
793
794
(1)
Per share measures may not recalculate due
to rounding.
(2)
Pension settlement, included in Other
income (loss), net, represent 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.
(4)
(Gain) loss on asset and investment sales,
net, 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 1 of the
Condensed Consolidated Financial Statements.
(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)
Settlement costs, included in Other
expense, net, primarily are comprised of legal settlement and a
voluntary contribution made to support humanitarian efforts in
Ukraine.
(7)
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.
(8)
The tax effect of adjustments, included in
Income and mining tax benefit (expense), represents the tax effect
of adjustments in footnotes (2) through (7), as described above,
and are calculated using the applicable regional tax rate.
(9)
Valuation allowance and other tax
adjustments, included in Income and mining tax benefit (expense),
is recorded for items such as foreign tax credits, alternative
minimum tax credits, capital losses, disallowed foreign losses, and
the effects of changes in foreign currency exchange rates on
deferred tax assets and deferred tax liabilities. The adjustment
for the three months ended March 31, 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 $12, the effects of changes in foreign exchange rates
on deferred tax assets and liabilities of $(3), net reductions to
the reserve for uncertain tax positions of $(12), and other tax
adjustments of $1.
(10)
Adjusted net income (loss) per diluted
share is calculated using diluted common shares 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
March 31,
2023
2022
Net income (loss) attributable to Newmont
stockholders
$
351
$
448
Net income (loss) attributable to
noncontrolling interests
12
21
Net loss (Income) from discontinued
operations
(12
)
(16
)
Equity loss (income) of affiliates
(25
)
(39
)
Income and mining tax expense
(benefit)
213
214
Depreciation and amortization
461
547
Interest expense, net of capitalized
interest
65
62
EBITDA
$
1,065
$
1,237
Adjustments:
Change in fair value of investments
(1)
$
(41
)
$
(39
)
(Gain) loss on asset and investment sales,
net (2)
(36
)
35
Impairment charges (3)
4
—
Restructuring and severance (4)
2
1
Pension settlement (5)
—
130
Settlement costs (6)
—
13
Reclamation and remediation charges
(7)
—
13
Other (8)
(4
)
—
Adjusted EBITDA
$
990
$
1,390
(1)
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.
(2)
(Gain) loss on asset and investment sales,
net, included in Other income (loss), net, in 2023 is primarily
comprised of the net gain recognized on the exchange of the
previously held Maverix investment for Triple Flag and the
subsequent sale of the Triple Flag investment. Refer to Note 10 of
the Condensed Consolidated Financial Statements for further
information. For 2022, primarily comprised of the loss recognized
on the sale of the La Zanja equity method investment. Refer to Note
1 of the Condensed Consolidated Financial Statements for further
information.
(3)
Impairment charges, included in Other
expense, net, represents non-cash write-downs of various assets
that are no longer in use and materials and supplies
inventories.
(4)
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.
(5)
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.
(6)
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.
(7)
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. For
further information, refer to Note 5 of the Condensed Consolidated
Financial Statements.
(8)
Other represents income received during
the first quarter of 2023, on the favorable settlement of certain
matters that were outstanding at the time of sale of the related
investment in 2022. Amounts included in Other income (loss),
net.
Income (loss) before income and mining tax and other items is
reconciled to Nevada Gold Mines (NGM) EBITDA as follows:
Three Months Ended
March 31,
2023
2022
Income (Loss) before Income and Mining Tax
and other Items, NGM (1)
$
85
$
153
Depreciation and amortization (1)
106
125
NGM EBITDA
$
191
$
278
(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
March 31,
2023
2022
Net cash provided by (used in) operating
activities
$
481
$
694
Less: Net cash used in (provided by)
operating activities of discontinued operations
—
(5
)
Net cash provided by (used in) operating
activities of continuing operations
481
689
Less: Additions to property, plant and
mine development
(526
)
(437
)
Free Cash Flow
$
(45
)
$
252
Net cash provided by (used in) investing
activities (1)
$
(342
)
$
(519
)
Net cash provided by (used in) financing
activities
$
(350
)
$
(895
)
(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 March 31,
2023
Consolidated
Attributable to noncontrolling
interests (1)
Attributable to Newmont
Stockholders
Net cash provided by (used in) operating
activities
$
481
$
(12
)
$
469
Less: Net cash used in (provided by)
operating activities of discontinued operations
—
—
—
Net cash provided by (used in) operating
activities of continuing operations
481
(12
)
469
Less: Additions to property, plant and
mine development (2)
(526
)
3
(523
)
Free Cash Flow
$
(45
)
$
(9
)
$
(54
)
Net cash provided by (used in) investing
activities (3)
$
(342
)
Net cash provided by (used in) financing
activities
$
(350
)
(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 relates to Merian (25%).
(2)
For the three months ended March 31, 2023,
Merian had total consolidated Additions to property, plant and mine
development of $13 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 March 31,
2022
Consolidated
Attributable to noncontrolling
interests (1)
Attributable to Newmont
Stockholders
Net cash provided by (used in) operating
activities
$
694
$
(33
)
$
661
Less: Net cash used in (provided by)
operating activities of discontinued operations
(5
)
—
(5
)
Net cash provided by (used in) operating
activities of continuing operations
689
(33
)
656
Less: Additions to property, plant and
mine development (2)
(437
)
18
(419
)
Free Cash Flow
$
252
$
(15
)
$
237
Net cash provided by (used in) investing
activities (3)
$
(519
)
Net cash provided by (used in) financing
activities
$
(895
)
(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 (5%) and Merian
(25%).
(2)
For the three months ended March 31, 2022,
Yanacocha and Merian had total consolidated Additions to property,
plant and mine development of $68 and $10, 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.
Net Debt
Net Debt is calculated as Debt and Lease and other financing
obligations less Cash and cash equivalents and time deposits
included in Time deposits and other investments, as presented on
the Condensed Consolidated Balance Sheets. Cash and cash
equivalents and time deposits are subtracted from Debt and Lease
and other financing obligations as these are highly liquid,
low-risk investments and could be used to reduce the Company's debt
obligations.
The following table sets forth a reconciliation of Net Debt, a
non-GAAP financial measure, to Debt and Lease and other financing
obligations, which the Company believes to be the GAAP financial
measures most directly comparable to Net Debt.
At March 31,
2023
At December 31,
2022
Debt
$
5,572
$
5,571
Lease and other financing obligations
547
561
Less: Cash and cash equivalents
(2,657
)
(2,877
)
Less: Time deposits (1)
(797
)
(829
)
Net debt
$
2,665
$
2,426
(1)
Time deposits are included within Time
deposits and other investments on the Condensed Consolidated
Balance Sheets. Refer to Note 10 of the Condensed Consolidated
Financial Statements for further information.
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
March 31,
2023
2022
Costs applicable to sales (1)(2)
$
1,239
$
1,184
Gold sold (thousand ounces)
1,208
1,329
Costs applicable to sales per ounce
(3)
$
1,025
$
890
(1)
Includes by-product credits of $30 and $27
during the three months ended March 31, 2023 and 2022,
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
March 31,
2023
2022
Costs applicable to sales (1)(2)
$
243
$
251
Gold equivalent ounces sold - other metals
(thousand ounces) (3)
265
350
Costs applicable to sales per gold
equivalent ounce (4)
$
918
$
717
(1)
Includes by-product credits of $2 and $2
during the three months ended March 31, 2023 and 2022,
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 ($1,400/oz.), Copper
($3.50/lb.), Silver ($20.00/oz.), Lead ($1.00/lb.) and Zinc
($1.20/lb.) pricing for 2023 and Gold ($1,200/oz.), Copper
($3.25/lb.), Silver ($23.00/oz.), Lead ($0.95/lb.) and Zinc
($1.15/lb.) pricing for 2022.
(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
March 31,
2023
2022
Cost applicable to sales, NGM (1)(2)
$
286
$
257
Gold sold (thousand ounces), NGM
258
287
Costs applicable to sales per ounce, NGM
(3)
$
1,109
$
899
(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 March 31,
2023
Costs Applicable to
Sales(1)(2)(3)(4)
Reclamation Costs(5)
Advanced Projects, Research
and Development and Exploration(6)
General and
Administrative
Other Expense, Net(7)
Treatment and Refining
Costs
Sustaining Capital and Lease
Related Costs(8)(9)(10)
All-In Sustaining
Costs
Ounces (000) Sold
All-In Sustaining Costs Per
oz.(11)
Gold
CC&V
$
51
$
2
$
3
$
—
$
—
$
—
$
10
$
66
48
$
1,375
Musselwhite
58
1
1
—
—
—
14
74
44
1,681
Porcupine
70
5
4
—
—
—
13
92
65
1,412
Éléonore
75
2
1
—
—
—
19
97
68
1,420
Peñasquito
67
3
—
—
—
4
12
86
56
1,539
Merian
85
2
2
—
—
—
14
103
83
1,235
Cerro Negro
70
1
1
—
—
—
12
84
61
1,379
Yanacocha
56
7
3
—
1
—
3
70
53
1,332
Boddington
167
4
1
—
—
5
28
205
198
1,035
Tanami
61
1
—
—
—
—
17
79
65
1,219
Ahafo
130
4
—
—
1
—
44
179
131
1,366
Akyem
63
10
—
—
—
—
10
83
78
1,067
Nevada Gold Mines
286
4
4
2
—
2
65
363
258
1,405
Corporate and Other (12)
—
—
19
61
—
—
2
82
—
—
Total Gold
$
1,239
$
46
$
39
$
63
$
2
$
11
$
263
$
1,663
1,208
$
1,376
Gold equivalent ounces - other metals
(13)
Peñasquito
$
190
$
7
$
1
$
—
$
—
$
34
$
36
$
268
199
$
1,351
Boddington
53
1
1
—
—
4
8
67
66
1,019
Corporate and Other (12)
—
—
3
11
—
—
—
14
—
—
Total Gold Equivalent Ounces
$
243
$
8
$
5
$
11
$
—
$
38
$
44
$
349
265
$
1,322
Consolidated
$
1,482
$
54
$
44
$
74
$
2
$
49
$
307
$
2,012
(1)
Excludes Depreciation and amortization and
Reclamation and remediation.
(2)
Includes by-product credits of $32 and
excludes co-product revenues of $376.
(3)
Includes stockpile and leach pad inventory
adjustments of $1 at Akyem, and $1 at NGM.
(4)
Beginning January 1, 2023, COVID-19
specific costs incurred in the ordinary course of business are
recognized in Costs applicable to sales.
(5)
Reclamation costs include operating
accretion and amortization of asset retirement costs of $24 and
$30, respectively, and exclude accretion and reclamation and
remediation adjustments at former operating properties that have
entered the closure phase and have no substantive future economic
value of $38 and $4, respectively.
(6)
Advanced projects, research and
development and exploration excludes development expenditures of $2
at Peñasquito, $1 at Merian, $1 at Cerro Negro, $4 at Tanami, $6 at
Ahafo, $3 at Akyem, $3 at NGM, and $19 at Corporate and Other,
totaling $39 related to developing new operations or major projects
at existing operations where these projects will materially benefit
the operation.
(7)
Other expense, net is adjusted for
impairment charges of $4 and restructuring and severance of $2.
(8)
Includes sustaining capital expenditures
of $285. See Liquidity and Capital Resources within Part I, Item 2,
Management's Discussion and Analysis for sustaining capital
expenditures by segment.
(9)
Excludes development capital expenditures,
capitalized interest and the change in accrued capital totaling
$241. See Liquidity and Capital Resources within Part I, Item 2,
Management's Discussion and Analysis for discussion of major
development projects.
(10)
Includes finance lease payments and other
costs for sustaining projects of $22.
(11)
Per ounce measures may not recalculate due
to rounding.
(12)
Corporate and other includes the Company's
business activities relating to its corporate and regional offices,
and all equity method investments. Refer to Note 3 of the Condensed
Consolidated Financial Statements for further information.
(13)
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 ($1,400/oz.), Copper
($3.50/lb.), Silver ($20.00/oz.), Lead ($1.00/lb.) and Zinc
($1.20/lb.) pricing for 2023.
Three Months EndedMarch 31, 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)(7)
Treatment and Refining
Costs
Sustaining Capital and Lease
Related Costs(8)(9)(10)
All-In Sustaining
Costs
Ounces (000) Sold
All-In Sustaining Costs Per
oz.(11)
Gold
CC&V
$
52
$
3
$
1
$
—
$
1
$
—
$
4
$
61
36
$
1,676
Musselwhite
43
2
1
—
1
—
6
53
32
1,642
Porcupine
66
1
2
—
—
—
9
78
60
1,296
Éléonore
62
2
—
—
1
—
12
77
50
1,557
Peñasquito
87
2
1
—
1
7
14
112
134
843
Merian
87
2
1
—
1
—
11
102
103
991
Cerro Negro
63
1
—
—
6
—
11
81
64
1,252
Yanacocha
67
4
—
—
3
—
5
79
68
1,163
Boddington
162
5
1
—
—
3
13
184
198
931
Tanami
65
—
3
—
3
—
29
100
99
1,012
Ahafo
106
2
1
—
1
—
22
132
108
1,223
Akyem
67
7
1
—
—
—
10
85
90
942
Nevada Gold Mines
257
1
3
3
—
1
46
311
287
1,086
Corporate and Other (12)
—
—
23
51
—
—
7
81
—
—
Total Gold
$
1,184
$
32
$
38
$
54
$
18
$
11
$
199
$
1,536
1,329
$
1,156
Gold equivalent ounces - other metals
(13)
Peñasquito
$
205
$
5
$
2
$
—
$
3
$
33
$
33
$
281
295
$
951
Boddington
46
1
—
—
—
2
4
53
55
959
Corporate and Other (12)
—
—
5
10
—
—
1
16
—
—
Total Gold Equivalent Ounces
$
251
$
6
$
7
$
10
$
3
$
35
$
38
$
350
350
$
997
Consolidated
$
1,435
$
38
$
45
$
64
$
21
$
46
$
237
$
1,886
(1)
Excludes Depreciation and amortization and
Reclamation and remediation.
(2)
Includes by-product credits of $29 and
excludes co-product revenues of $509.
(3)
Includes stockpile and leach pad inventory
adjustments of $5 at CC&V, $3 at Merian, and $1 at NGM.
(4)
Reclamation costs include operating
accretion and amortization of asset retirement costs of $16 and
$22, 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 $28 and $17, respectively.
(5)
Advanced projects, research and
development and exploration excludes development expenditures of $1
at Porcupine, $2 at Peñasquito, $2 at Merian, $3 at Cerro Negro, $1
at Yanacocha, $3 at Tanami, $3 at Ahafo, $3 at Akyem, $3 at NGM,
and $16 at Corporate and Other, totaling $37 related to developing
new operations or major projects at existing operations where these
projects will materially benefit the operation.
(6)
Other expense, net includes incremental
COVID-19 costs incurred as a result of actions taken to protect
against the impacts of the COVID-19 pandemic at our operational
sites of $17.
(7)
Other expense, net is adjusted settlement
costs of $13 and restructuring and severance costs of $1.
(8)
Includes sustaining capital expenditures
of $220. See Liquidity and Capital Resources within Part I, Item 2,
Management's Discussion and Analysis for sustaining capital
expenditures by segment.
(9)
Excludes development capital expenditures,
capitalized interest and the change in accrued capital totaling
$217. See Liquidity and Capital Resources within Part I, Item 2,
Management's Discussion and Analysis for discussion of major
development projects.
(10)
Includes finance lease payments for
sustaining projects of $17.
(11)
Per ounce measures may not recalculate due
to rounding.
(12)
Corporate and other includes the Company's
business activities relating to its corporate and regional offices,
and all equity method investments. Refer to Note 3 of the Condensed
Consolidated Financial Statements for further information.
(13)
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.
A reconciliation of the 2023 Gold AISC outlook to the 2023 Gold
CAS outlook is provided below. The estimates in the table below are
considered “forward-looking statements” within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section
21E of the Securities Exchange Act of 1934, as amended, which are
intended to be covered by the safe harbor created by such sections
and other applicable laws.
2023 Outlook - Gold (1)(2)
Outlook Estimate
(in millions, except ounces and per
ounce)
(+/- 5%)
Cost Applicable to Sales (3)(4)
$
5,500
Reclamation Costs (5)
190
Advanced Projects & Exploration
(6)
170
General and Administrative (7)
235
Other Expense
15
Treatment and Refining Costs
50
Sustaining Capital (8)
1,000
Sustaining Finance Lease Payments
30
All-in Sustaining Costs
$
7,200
Ounces (000) Sold (9)
6,000
All-in Sustaining Costs per Ounce
$
1,200
(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 the 2023
AISC Gold 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.
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 and time deposits, 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
March 31, 2023
December 31, 2022
September 30, 2022
June 30, 2022
Net income (loss) attributable to Newmont
stockholders
$
351
$
(1,477
)
$
213
$
387
Net income (loss) attributable to
noncontrolling interests
12
19
7
13
Net loss (income) from discontinued
operations
(12
)
(11
)
5
(8
)
Equity loss (income) of affiliates
(25
)
(26
)
(25
)
(17
)
Income and mining tax expense
(benefit)
213
112
96
33
Depreciation and amortization
461
571
508
559
Interest expense, net of capitalized
interest
65
53
55
57
EBITDA
1,065
(759
)
859
1,024
EBITDA Adjustments:
Change in fair value of investments
(41
)
(45
)
(5
)
135
(Gain) loss on asset and investment sales,
net
(36
)
(61
)
(9
)
—
Impairment charges
4
1,317
1
2
Restructuring and severance
2
1
2
—
Reclamation and remediation charges
—
700
—
—
Pension settlements
—
7
—
—
Settlement costs
—
2
2
5
COVID-19 specific costs
—
2
—
1
Other
(4
)
(3
)
—
(18
)
Adjusted EBITDA
990
1,161
850
1,149
12 month trailing Adjusted
EBITDA
$
4,150
Total Debt
$
5,572
Lease and other financing obligations
547
Less: Cash and cash equivalents
(2,657
)
Less: Time deposits
(797
)
Total net debt
$
2,665
Net debt to adjusted EBITDA
0.6
Net average realized price per ounce/ pound
Average realized price per ounce/ pound are non-GAAP financial
measures. The measures are calculated by dividing the net
consolidated gold, copper, silver, lead and zinc sales by the
consolidated gold ounces, copper pounds, silver ounces, lead pounds
and zinc pounds sold, respectively. These measures are calculated
on a consistent basis for the periods presented on a consolidated
basis. Average realized price per ounce/ pound statistics are
intended to provide additional information only, do not have any
standardized meaning prescribed by GAAP and should not be
considered in isolation or as a substitute for measures of
performance prepared in accordance with GAAP. The measures are not
necessarily indicative of operating profit or cash flow from
operations as determined under GAAP. Other companies may calculate
these measures differently.
The following tables reconcile these non-GAAP measures to the
most directly comparable GAAP measure:
Three Months Ended
March 31,
2023
2022
Consolidated gold sales, net
$
2,303
$
2,514
Consolidated copper sales, net
110
99
Consolidated silver sales, net
117
156
Consolidated lead sales, net
32
44
Consolidated zinc sales, net
117
210
Total sales
$
2,679
$
3,023
Three Months Ended March 31,
2023
Gold
Copper
Silver
Lead
Zinc
(ounces)
(pounds)
(ounces)
(pounds)
(pounds)
Consolidated sales:
Gross before provisional pricing and
streaming impact
$
2,297
$
105
$
110
$
35
$
143
Provisional pricing mark-to-market
17
9
2
(2
)
(4
)
Silver streaming amortization
—
—
16
—
—
Gross after provisional pricing and
streaming impact
2,314
114
128
33
139
Treatment and refining charges
(11
)
(4
)
(11
)
(1
)
(22
)
Net
$
2,303
$
110
$
117
$
32
$
117
Consolidated ounces (thousands)/pounds
(millions) sold
1,208
26
6,124
36
99
Average realized price (per ounce/pound):
(1)
Gross before provisional pricing and
streaming impact
$
1,901
$
3.99
$
17.98
$
0.95
$
1.44
Provisional pricing mark-to-market
14
0.33
0.30
(0.06
)
(0.04
)
Silver streaming amortization
—
—
2.56
—
—
Gross after provisional pricing and
streaming impact
1,915
4.32
20.84
0.89
1.40
Treatment and refining charges
(9
)
(0.14
)
(1.67
)
(0.03
)
(0.22
)
Net
$
1,906
$
4.18
$
19.17
$
0.86
$
1.18
(1)
Per ounce/pound measures may not
recalculate due to rounding.
Three Months Ended March 31,
2022
Gold
Copper
Silver
Lead
Zinc
(ounces)
(pounds)
(ounces)
(pounds)
(pounds)
Consolidated sales:
Gross before provisional pricing and
streaming impact
$
2,502
$
92
$
148
$
44
$
206
Provisional pricing mark-to-market
23
9
3
1
22
Silver streaming amortization
—
—
19
—
—
Gross after provisional pricing and
streaming impact
2,525
101
170
45
228
Treatment and refining charges
(11
)
(2
)
(14
)
(1
)
(18
)
Net
$
2,514
$
99
$
156
$
44
$
210
Consolidated ounces (thousands)/pounds
(millions) sold
1,329
21
7,652
42
120
Average realized price (per ounce/pound):
(1)
Gross before provisional pricing and
streaming impact
$
1,883
$
4.51
$
19.41
$
1.06
$
1.72
Provisional pricing mark-to-market
17
0.45
0.36
0.03
0.18
Silver streaming amortization
—
—
2.45
—
—
Gross after provisional pricing and
streaming impact
1,900
4.96
22.22
1.09
1.90
Treatment and refining charges
(8
)
(0.12
)
(1.86
)
(0.03
)
(0.15
)
Net
$
1,892
$
4.84
$
20.36
$
1.06
$
1.75
(1)
Per ounce/pound measures may not
recalculate due to rounding.
Gold by-product metrics
Copper, silver, 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
March 31,
2023
2022
Consolidated gold sales, net
$
2,303
$
2,514
Consolidated other metal sales, net
376
509
Sales
$
2,679
$
3,023
Costs applicable to sales
$
1,482
$
1,435
Less: Consolidated other metal sales,
net
(376
)
(509
)
By-Product costs applicable to sales
$
1,106
$
926
Gold sold (thousand ounces)
1,208
1,329
Total Gold CAS per ounce (by-product)
(1)
$
916
$
697
Total AISC
$
2,012
$
1,886
Less: Consolidated other metal sales,
net
(376
)
(509
)
By-Product AISC
$
1,636
$
1,377
Gold sold (thousand ounces)
1,208
1,329
Total Gold AISC per ounce (by-product)
(1)
$
1,354
$
1,036
(1)
Per ounce measures may not recalculate due
to rounding.
Conference Call Information
A conference call will be held on Thursday, April 27,
2023 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
844.470.1428
Intl. Dial-In Number
404.975.48391
Dial-In Access Code
034257
Conference Name
Newmont
Replay Number
866.813.9403
Intl. Replay Number
44.204.525.0658
Replay Access Code
356098
Webcast Details
Title: Newmont First Quarter 2023 Earnings Conference Call URL:
https://events.q4inc.com/attendee/766392509
The first quarter 2023 results will be available before the
market opens on Thursday, April 27, 2023, 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, lead and zinc. 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, upside
potential, 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, the dividend framework and expected payout levels; (vii)
expectations regarding future mineralization, including, without
limitation, expectations regarding reserves and recoveries; and
(viii) 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 and other health emergencies could result in supply chain
impacts, operating sites being placed into care and maintenance and
impact estimates, costs escalations 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 the dividend framework is non-binding and the
2023 dividend payout range does not represent a legal commitment.
Future dividends beyond the dividend payable on June 15, 2023 to
holders of record at the close of business on June 1, 2023 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. No guarantees can be made that the Company
will be able to maintain the same dividend level 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, 2022 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, 2022, 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 23, 2023 with the SEC.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230427005113/en/
Media Contact Omar Jabara
720.212.9651 omar.jabara@newmont.com
Investor Contact Daniel Horton
303.837.5468 daniel.horton@newmont.com
Newmont (NYSE:NEM)
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