Newmont announces solid first quarter results;
well-positioned to deliver a strong second half and long-term value
from top-tier mining jurisdictions
Newmont Corporation (NYSE: NEM, TSX: NGT) (Newmont or the
Company) today announced first quarter 2022 results.
FIRST QUARTER 2022 HIGHLIGHTS
- Produced 1.34 million attributable ounces of gold and 350
thousand attributable gold equivalent ounces from co-products
- Reported gold CAS* of $890 per ounce and AISC* of $1,156 per
ounce
- Remain on track to achieve full-year guidance ranges; full-year
results continue to be back-half weighted**
- Generated $689 million of cash from continuing operations and
$252 million of Free Cash Flow*
- Declared first quarter dividend of $0.55 per share, consistent
with the previous quarter; $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*
- Credit rating upgraded by S&P Global Ratings to BBB+ from
BBB with a stable outlook
- Advancing profitable near-term projects, including Tanami
Expansion 2, Ahafo North and Yanacocha Sulfides
- Executed on strategy to consolidate ownership in prolific
mining districts with acquisition of Yanacocha's minority interest
stake; increasing ownership in Sulfides project to 100 percent
through acquisition of Buenaventura's 43.65% interest and Sumitomo
Corporation's 5% interest****
- Published 18th Annual Sustainability report, a transparent
review of Environmental, Social and Governance (ESG)
performance
- Committed $5 million contribution to support humanitarian
efforts in Ukraine
- Ranked eleventh on Fortune's Modern Board 25, a list of the
most innovative boards of directors among S&P 500 companies;
recognized for gender equality, nationality dispersion and board
independence
"Newmont delivered a solid first quarter performance with $1.4
billion in adjusted EBITDA as we safely managed through the Omicron
surge. The strength of our proven operating model and global
portfolio in the world's best mining jurisdictions is the
foundation of Newmont's clear and consistent strategy to create
value and improve lives through sustainable and responsible mining.
In April, we published our 18th Annual Sustainability Report, which
provides a transparent look at our ESG performance and the issues
and metrics that matter most to our stakeholders. As a values-based
organization and the gold sector's recognized sustainability
leader, Newmont has a long history of leading change in our
approach to ESG and our core values are fundamental to how we run
our business and where we choose to operate."
- Tom Palmer, Newmont President and Chief Executive
Officer
___________________________
*Non-GAAP metrics; see pages 12-26 for reconciliations. **See
discussion of outlook and cautionary statement at end of release
regarding forward-looking statements. ***See cautionary statement
at the end of this release, including with respect to future
dividends and share buybacks. ****The acquisition of the remaining
5% interest in Yanacocha from Sumitomo Corporation is expected to
close in Q2 2022.
FIRST QUARTER 2022 FINANCIAL AND PRODUCTION SUMMARY
Q1'22
Q4'21
Q1'21
Average realized gold price ($ per
ounce)
$
1,892
$
1,798
$
1,751
Attributable gold production (million
ounces)
1.34
1.62
1.46
Gold costs applicable to sales (CAS) ($
per ounce)
$
890
$
802
$
752
Gold all-in sustaining costs (AISC) ($ per
ounce)
$
1,156
$
1,056
$
1,039
GAAP net income (loss) from continuing
operations ($ millions)
$
432
$
(61
)
$
538
Adjusted net income ($ millions)
$
546
$
624
$
594
Adjusted EBITDA ($ millions)
$
1,390
$
1,599
$
1,457
Cash flow from continuing operations ($
millions)
$
689
$
1,299
$
841
Capital expenditures ($ millions)
$
437
$
441
$
399
Free cash flow ($ millions)
$
252
$
858
$
442
Attributable gold production1 decreased 8 percent to
1,344 thousand ounces from the prior year quarter primarily due to
lower mill throughput at CC&V, Tanami, Porcupine and Nevada
Gold Mines, lower ore grades milled at Peñasquito, Pueblo Viejo,
Éléonore and Porcupine, and a build-up of in-circuit inventory.
These decreases were partially offset by higher ore grade milled at
Boddington and higher production at Yanacocha due to the
acquisition of Buenaventura's 43.65% ownership in February
2022.
Gold CAS totaled $1.2 billion for the quarter. Gold
CAS per ounce2 increased 18 percent to $890 per ounce from the
prior year quarter primarily due to lower ounces sold, higher
direct operating costs, a draw-down of in-circuit inventory and
lower by-product credits at Yanacocha.
Gold AISC per ounce3 increased 11 percent to $1,156 per
ounce from the prior year quarter primarily due to higher CAS per
ounce.
Attributable gold equivalent ounce (GEO) production from
other metals increased 10 percent to 350 thousand ounces
primarily due to higher ore grade milled at Peñasquito and
Boddington.
CAS from other metals totaled $251 million for the
quarter. CAS per GEO2 increased 29 percent to $717 per ounce
from the prior year quarter primarily due to higher allocation of
costs to other metals at Peñasquito.
AISC per GEO3 increased 22 percent to $997 per ounce
primarily due to higher CAS per GEO.
Net income from continuing operations attributable to
Newmont stockholders was $432 million or $0.54 per diluted share, a
decrease of $106 million from the prior year quarter primarily due
to lower gold sales volumes, higher CAS, a pension settlement
charge of $130 million, the loss recognized on the sale of the La
Zanja equity method investment in 2022 compared to a gain on the
sale of TMAC in 2021 and higher reclamation and remediation
charges. These decreases were partially offset by higher average
realized metal prices, unrealized gains on marketable and other
equity securities in 2022 compared to unrealized losses in 2021 and
lower income tax expense.
Adjusted net income4 was $546 million or $0.69 per
diluted share, compared to $594 million or $0.74 per diluted share
in the prior year quarter. Primary adjustments to first quarter net
income include pension settlement charges, changes in the fair
value of investments, the loss recognized on the sale of the La
Zanja equity method investment, reclamation and remediation
charges, settlement costs, a voluntary contribution made to support
humanitarian efforts in Ukraine, and valuation allowance and other
tax adjustments.
Adjusted EBITDA5 decreased 5 percent to $1.4 billion for
the quarter, compared to $1.5 billion for the prior year
quarter.
Revenue increased 5 percent from the prior year quarter
to $3.0 billion primarily due to higher average realized gold
prices and higher copper sales volumes, which were partially offset
by lower gold sales volumes.
Average realized price6 for gold was $1,892, an increase
of $141 per ounce over the prior year quarter. Average realized
gold price includes $1,883 per ounce of gross price received, the
favorable impact of $17 per ounce mark-to-market on
provisionally-priced sales and reductions of $8 per ounce for
treatment and refining charges.
Capital expenditures7 increased 10 percent from the prior
year quarter to $437 million primarily due to higher development
capital spend, which was partially offset by lower sustaining
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 decreased 18 percent from the prior year quarter to
$689 million primarily due to lower gold sales volumes and an
increase in accounts receivable related to timing of cash receipts.
These decreases were partially offset by higher average realized
metal prices. Free Cash Flow8 also decreased to $252 million
primarily due to lower operating cash flow and higher development
capital expenditures as described above.
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 0.3x9.
Nevada Gold Mines (NGM) attributable gold production was
288 thousand ounces, with CAS of $899 per ounce and AISC of $1,086
per ounce for the first quarter. NGM EBITDA10 was $278 million.
Pueblo Viejo (PV) attributable gold production was 69
thousand ounces for the quarter. Pueblo Viejo EBITDA10 was $80
million and cash distributions received for the Company's equity
method investment totaled $49 million in the first 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 $17 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 UPDATE11
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 with
potential 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 is expected to reduce operating costs by
approximately 10 percent. Capital costs for the project are
estimated to be between $850 and $950 million with a commercial
production date in 2024. Development costs (excluding capitalized
interest) since approval were $333 million, of which $49 million
related to the first quarter of 2022.
- Ahafo North (Africa) expands our
existing footprint in Ghana with four open pit mines and a
stand-alone mill located approximately 30 kilometers from the
Company’s Ahafo South operations. The project is expected to add
between 275,000 and 325,000 ounces per year with all-in sustaining
costs between $600 to $700 per ounce for the first five full years
of production (2024-2028). Capital costs for the project are
estimated to be between $750 and $850 million with a construction
completion date in late 2023 and commercial production in 2024.
Ahafo North is the best unmined gold deposit in West Africa with
approximately 3.5 million ounces of Reserves and more than 1
million ounces of Measured, 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 $95 million, of which $28 million
related to the first quarter of 2022.
- Yanacocha Sulfides12 (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 with all-in sustaining costs between $700 and $800 per ounce
for the first five full years of production (2027-2031). Total
capital costs for the project are estimated at $2.5 billion, with
an investment decision expected in late 2022 and 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, while improving all-in
sustaining costs to between $800 and $900 per ounce. 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 first quarter 2022
includes 69 thousand ounces from the Company’s equity method
investment in Pueblo Viejo (40%). 2 Non-GAAP measure. See end of
this release for reconciliation to Costs applicable to sales. 3
Non-GAAP measure. See end of this release for reconciliation to
Costs applicable to sales. 4 Non-GAAP measure. See end of this
release for reconciliation to Net income (loss) attributable to
Newmont stockholders. 5 Non-GAAP measure. See end of this release
for reconciliation to Net income (loss) attributable to Newmont
stockholders. 6 Non-GAAP measure. See end of this release for
reconciliation to Sales. 7 Capital expenditures refers to Additions
to property plant and mine development from the Condensed
Consolidated Statements of Cash Flows. 8 Non-GAAP measure. See end
of this release for reconciliation to Net cash provided by
operating activities. 9 Non-GAAP measure. See end of this release
for reconciliation. 10 Non-GAAP measure. See end of this release
for reconciliation. 11 All-in sustaining costs are presented using
a $1,200/oz gold price assumption. Project estimates remain subject
to change based upon uncertainties, including future impacts
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. 12 Consolidated basis.
OUTLOOK
Newmont’s outlook reflects increasing gold production and
ongoing investment in its operating assets and most promising
growth prospects. Outlook includes current development capital
costs and production related to Tanami Expansion 2, Ahafo North,
Yanacocha Sulfides, Pamour at Porcupine and Cerro Negro District
Expansion 1.
Newmont continues to develop our mine plan utilizing a $1,200
per ounce gold price assumption. However, due to sustained higher
gold prices over the last two years, Newmont’s 2022 outlook assumes
an $1,800 per ounce revenue gold price for CAS and AISC to reflect
higher costs from inflation, royalties and production taxes. In
2022, an additional 5% of cost escalation is incorporated into our
direct operating costs related to labor, energy, and material and
supplies. 2022 and longer-term outlook assumes a $30 per ounce
impact from production taxes and royalties attributable to higher
gold prices. Outlook assumes operations continue without major
Covid-related interruptions. 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, which are
expected to impact AISC per gold equivalent ounce by approximately
$10 per ounce. If at any point the Company determines that
continuing operations poses an increased risk to our workforce or
host communities, it will reduce operational activities up to, and
including, care and maintenance and management of critical
environmental systems. Please see the cautionary statement for
additional information.
For a more detailed discussion and outlook presented at a $1,200
per ounce gold price assumption, see the Company’s 2022 and
Longer-Term Outlook released on December 2, 2021, available on
www.newmont.com. The attributable site-level production for
Yanacocha and attributable development capital guidance below
accounts for the acquisition of Buenaventura's 43.65% interest in
Yanacocha, as announced on February 8, 2022. All other guidance
metrics remain unchanged from the Company's 2022 and Longer-Term
Outlook as announced on December 2, 2021.
Five Year Outlook (+/- 5%): $1,800/oz Gold Price
Assumption
Guidance Metric ($M) (+/- 5%)
2022E
2023E
2024E
2025E
2026E
Gold Production* (Moz)
6.2
6.0 - 6.6
6.2 - 6.8
6.2 - 6.8
6.2 - 6.8
Co-Product Production** (Mozs)
1.3
1.4 - 1.6
1.4 - 1.6
1.4 - 1.6
1.4 - 1.6
Total GEO Production (Mozs)
7.5
7.5 - 8.1
7.7 - 8.3
7.7 - 8.3
7.7 - 8.3
Gold CAS ($/oz)
820
740 - 840
700 - 800
700 - 800
700 - 800
Co-Product GEO CAS ($/oz)
675
600 - 700
500 - 600
500 - 600
500 - 600
Total GEO CAS ($/oz)
800
710 - 810
640 - 740
640 - 740
640 - 740
Gold AISC ($/oz)
1,050
980 - 1,080
920 - 1,020
920 - 1,020
920 - 1,020
Co-Product GEO AISC ($/oz)
975
900 - 1,000
800 - 900
800 - 900
800 - 900
Total GEO AISC ($/oz)
1,030
950 - 1,050
880 - 980
880 - 980
880 - 980
Sustaining Capital* ($M)
925
825 - 1,025
825 - 1,025
825 - 1,025
825 - 1,025
Development Capital* ($M)
1,400
1,300 - 1,500
1,100 - 1,300
400 - 600
100 - 300
Total Capital* ($M)
2,325
2,225 - 2,425
2,025 - 2,225
1,325 - 1,525
1,025 - 1,225
*Attributable basis; **Attributable co-product gold equivalent
ounces; includes copper, zinc, silver and lead
Consolidated Expense Outlook
Guidance Metric ($M) (+/- 5%)
2022E
Exploration & Advanced Projects
450
General & Administrative
260
Interest Expense
225
Depreciation & Amortization
2,300
Adjusted Tax Rate a,b
30%-34%
a The adjusted tax rate excludes certain items such as tax
valuation allowance adjustments. b 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 $1.15 per pound for
zinc and achievement of current production and sales volumes and
cost estimates, we estimate our consolidated adjusted effective tax
rate related to continuing operations for 2022 will be between
30%-34%.
2022 Site Outlooka
Consolidated Production
(Koz)
Attributable Production
(Koz)
Consolidated CAS
($/oz)
Consolidated All-In Sustaining
Costs b ($/oz)
Consolidated Sustaining
Capital Expenditures ($M)
Consolidated Development
Capital Expenditures ($M)
CC&V
210
210
975
1,200
35
—
Éléonore
275
275
975
1,150
30
—
Peñasquito
475
475
650
850
125
—
Porcupine
340
340
875
1,025
40
100
Musselwhite
200
200
875
1,150
50
—
Other North America
—
—
—
—
—
—
Cerro Negro
260
260
875
1,095
50
75
Yanacochac
225
210
1,100
1,375
25
475
Merianc
465
350
750
860
50
—
Pueblo Viejod
—
285
—
—
—
—
Other South America
—
—
—
—
—
—
Boddington
900
900
750
860
95
10
Tanami
500
500
625
960
125
275
Other Australia
—
—
—
—
15
—
Ahafo
650
650
875
1,000
85
30
Akyem
400
400
725
925
40
10
Ahafo North
—
—
—
—
—
340
Other Africa
—
—
—
—
—
—
Nevada Gold Minese
1,250
1,250
825
1,050
245
70
Corporate/Other
—
—
—
—
—
—
Peñasquito - Co-products (GEO)f
1,000
1,000
670
940
Boddington - Co-products (GEO)f
300
300
740
890
Peñasquito - Silver (Moz)
29
29
Peñasquito - Lead (Mlbs)
150
150
Peñasquito - Zinc (Mlbs)
350
350
Boddington - Copper (Mlbs)
110
110
a 2022 outlook projections are considered forward-looking
statements and represent management’s good faith estimates or
expectations of future production results as of December 2, 2021.
Outlook is based upon certain assumptions, including, but not
limited to, metal prices, oil prices, certain exchange rates and
other assumptions. For example, 2022 Outlook assumes $1,800/oz Au,
$3.25/lb Cu, $23.00/oz Ag, $1.15/lb Zn, $0.95/lb Pb, $0.75 USD/AUD
exchange rate, $0.80 USD/CAD exchange rate and $60/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. The attributable production guidance
accounts for the acquisition of Buenaventura's 43.65% interest in
Yanacocha, as announced on February 8, 2022. All other guidance
metrics remain unchanged from the Company's outlook as announced on
December 2, 2021. 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 2022 CAS outlook. c Consolidated
production for Yanacocha and Merian is presented on a total
production basis for the mine site; attributable production
represents a 95% interest for Yanacocha and a 75% interest for
Merian.
d Attributable production includes Newmont’s 40% interest in
Pueblo Viejo, which is accounted for as an equity method
investment. e 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. f Gold equivalent ounces (GEO) are
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
($1.15/lb.) pricing.
Three Months Ended March
31,
Operating Results
2022
2021
% Change
Attributable Sales (koz)
Attributable gold ounces sold (1)
1,291
1,361
(5
) %
Attributable gold equivalent ounces
sold
350
327
7
%
Average Realized Price ($/oz,
$/lb)
Average realized gold price
$ 1,892
$ 1,751
8
%
Average realized copper price
$ 4.84
$ 4.20
15
%
Average realized silver price
$ 20.36
$ 19.73
3
%
Average realized lead price
$ 1.06
$ 0.88
20
%
Average realized zinc price
$ 1.75
$ 1.06
65
%
Attributable Production (koz)
North America
309
413
(25
) %
South America
198
174
14
%
Australia
282
269
5
%
Africa
198
205
(3
) %
Nevada
288
303
(5
) %
Total Gold (excluding equity method
investments)
1,275
1,364
(7
) %
Pueblo Viejo (40%) (2)
69
91
(24
) %
Total Gold
1,344
1,455
(8
) %
North America
299
285
5
%
Australia
51
32
59
%
Total Gold Equivalent Ounces
350
317
10
%
CAS Consolidated ($/oz, $/GEO)
North America
$ 995
$ 736
35
%
South America
$ 921
$ 791
16
%
Australia
$ 764
$ 750
2
%
Africa
$ 871
$ 758
15
%
Nevada
$ 899
$ 745
21
%
Total Gold
$ 890
$ 752
18
%
Total Gold (by-product)
$ 697
$ 605
15
%
North America
$ 695
$ 518
34
%
Australia
$ 833
$ 935
(11
) %
Total Gold Equivalent Ounces
$ 717
$ 555
29
%
AISC Consolidated ($/oz, $/GEO)
North America
$ 1,230
$ 957
29
%
South America
$ 1,123
$ 1,063
6
%
Australia
$ 974
$ 1,104
(12
) %
Africa
$ 1,106
$ 950
16
%
Nevada
$ 1,086
$ 868
25
%
Total Gold
$ 1,156
$ 1,039
11
%
Total Gold (by-product)
$ 1,036
$ 953
9
%
North America
$ 954
$ 763
25
%
Australia
$ 976
$ 1,404
(30
) %
Total Gold Equivalent Ounces
$ 997
$ 819
22
%
(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
March 31,
2022
2021
Sales
$
3,023
$
2,872
Costs and expenses
Costs applicable to sales (1)
1,435
1,247
Depreciation and amortization
547
553
Reclamation and remediation
61
46
Exploration
38
35
Advanced projects, research and
development
44
31
General and administrative
64
65
Other expense, net
35
39
2,224
2,016
Other income (expense):
Other income (loss), net
(109
)
(39
)
Interest expense, net of capitalized
interest
(62
)
(74
)
(171
)
(113
)
Income (loss) before income and mining tax
and other items
628
743
Income and mining tax benefit
(expense)
(214
)
(235
)
Equity income (loss) of affiliates
39
50
Net income (loss) from continuing
operations
453
558
Net income (loss) from discontinued
operations
16
21
Net income (loss)
469
579
Net loss (income) attributable to
noncontrolling interests
(21
)
(20
)
Net income (loss) attributable to Newmont
stockholders
$
448
$
559
Net income (loss) attributable to Newmont
stockholders:
Continuing operations
$
432
$
538
Discontinued operations
16
21
$
448
$
559
Weighted average common shares
(millions):
Basic
793
801
Effect of employee stock-based awards
1
1
Diluted
794
802
Net income (loss) attributable to Newmont
stockholders per common share
Basic:
Continuing operations
$
0.54
$
0.67
Discontinued operations
0.02
0.03
$
0.56
$
0.70
Diluted:
Continuing operations
$
0.54
$
0.67
Discontinued operations
0.02
0.03
$
0.56
$
0.70
(1) Excludes Depreciation and amortization
and Reclamation and remediation.
NEWMONT CORPORATION
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
(unaudited, in
millions)
Three Months Ended
March 31,
2022
2021
Operating activities:
Net income (loss)
$
469
$
579
Non-cash adjustments:
Depreciation and amortization
547
553
Net loss (income) from discontinued
operations
(16
)
(21
)
Charges from pension settlement
130
—
Reclamation and remediation
57
43
Deferred income taxes
(41
)
(25
)
Change in fair value of investments
(39
)
110
Stock-based compensation
18
17
Other non-cash adjustments
29
(90
)
Net change in operating assets and
liabilities
(465
)
(325
)
Net cash provided by (used in) operating
activities of continuing operations
689
841
Net cash provided by (used in) operating
activities of discontinued operations
5
—
Net cash provided by (used in) operating
activities
694
841
Investing activities:
Additions to property, plant and mine
development
(437
)
(399
)
Contributions to equity method
investees
(52
)
(27
)
Payment relating to sale of La Zanja
(45
)
—
Return of investment from equity method
investees
13
18
Proceeds from asset and investment
sales
9
63
Purchases of investments
(4
)
(4
)
Other
(3
)
(1
)
Net cash provided by (used in) investing
activities
(519
)
(350
)
Financing activities:
Dividends paid to common stockholders
(436
)
(441
)
Acquisition of noncontrolling
interests
(300
)
—
Repayment of debt
(89
)
—
Distributions to noncontrolling
interests
(59
)
(54
)
Payments for withholding of employee taxes
related to stock-based compensation
(36
)
(28
)
Funding from noncontrolling interests
32
30
Payments on lease and other financing
obligations
(19
)
(18
)
Other
12
—
Net cash provided by (used in) financing
activities
(895
)
(511
)
Effect of exchange rate changes on cash,
cash equivalents and restricted cash
3
(2
)
Net change in cash, cash equivalents and
restricted cash
(717
)
(22
)
Cash, cash equivalents and restricted cash
at beginning of period
5,093
5,648
Cash, cash equivalents and restricted cash
at end of period
$
4,376
$
5,626
NEWMONT CORPORATION
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
(unaudited, in
millions)
Three Months Ended
March 31,
2022
2021
Reconciliation of cash, cash equivalents
and restricted cash:
Cash and cash equivalents
$ 4,272
$ 5,518
Restricted cash included in Other current
assets
50
2
Restricted cash included in Other
non-current assets
54
106
Total cash, cash equivalents and
restricted cash
$ 4,376
$ 5,626
NEWMONT CORPORATION
CONDENSED CONSOLIDATED BALANCE
SHEETS
(unaudited, in
millions)
At March 31,
2022
At December 31, 2021
ASSETS
Cash and cash equivalents
$
4,272
$
4,992
Trade receivables
413
337
Investments
72
82
Inventories
956
930
Stockpiles and ore on leach pads
800
857
Other current assets
546
498
Current assets
7,059
7,696
Property, plant and mine development,
net
24,070
24,124
Investments
3,335
3,243
Stockpiles and ore on leach pads
1,790
1,775
Deferred income tax assets
227
269
Goodwill
2,771
2,771
Other non-current assets
661
686
Total assets
$
39,913
$
40,564
LIABILITIES
Accounts payable
$
491
$
518
Employee-related benefits
366
386
Income and mining taxes payable
273
384
Lease and other financing obligations
104
106
Debt
—
87
Other current liabilities
1,183
1,173
Current liabilities
2,417
2,654
Debt
5,566
5,565
Lease and other financing obligations
540
544
Reclamation and remediation
liabilities
5,848
5,839
Deferred income tax liabilities
2,045
2,144
Employee-related benefits
375
439
Silver streaming agreement
892
910
Other non-current liabilities
599
608
Total liabilities
18,282
18,703
Contingently redeemable noncontrolling
interest
—
48
EQUITY
Common stock
1,278
1,276
Treasury stock
(236
)
(200
)
Additional paid-in capital
17,312
17,981
Accumulated other comprehensive income
(loss)
(12
)
(133
)
Retained earnings
3,107
3,098
Newmont stockholders' equity
21,449
22,022
Noncontrolling interests
182
(209
)
Total equity
21,631
21,813
Total liabilities and equity
$
39,913
$
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. Unless otherwise noted, we present the Non-GAAP financial
measures of our continuing operations in the tables below.
Adjusted net income (loss)
Management uses Adjusted net income (loss) to evaluate the
Company’s operating performance and for planning and forecasting
future business operations. The Company believes the use of
Adjusted net income (loss) allows investors and others to
understand the results of the continuing operations of the Company
and its direct and indirect subsidiaries relating to the sale of
products, by excluding certain items that have a disproportionate
impact on our results for a particular period. Adjustments to
continuing operations are presented before tax and net of our
partners’ noncontrolling interests, when applicable. The tax effect
of adjustments is presented in the Tax effect of adjustments line
and is calculated using the applicable regional tax rate.
Management’s determination of the components of Adjusted net income
(loss) are evaluated periodically and based, in part, on a review
of non-GAAP financial measures used by mining industry analysts.
Net income (loss) attributable to Newmont stockholders is
reconciled to Adjusted net income (loss) as follows:
Three Months Ended 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 settlement (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
(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 (7)
1
—
—
Tax effect of adjustments (8)
(37
)
(0.05
)
(0.05
)
Valuation allowance and other tax
adjustments (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, 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)
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
U.S. GAAP.
Three Months Ended
March 31, 2021
per share data (1)
basic
diluted
Net income (loss) attributable to Newmont
stockholders
$
559
$
0.70
$
0.70
Net loss (income) attributable to Newmont
stockholders from discontinued operations
(21
)
(0.03
)
(0.03
)
Net income (loss) attributable to Newmont
stockholders from continuing operations
538
0.67
0.67
Change in fair value of investments
(2)
110
0.14
0.14
Gain (loss) on asset and investment sales
(3)
(43
)
(0.05
)
(0.05
)
Reclamation and remediation charges
(4)
10
0.01
0.01
Restructuring and severance, net (5)
4
—
—
Settlement costs (6)
3
—
—
COVID-19 specific costs (7)
1
—
—
Impairment of long-lived and other assets
(8)
1
—
—
Tax effect of adjustments (9)
(19
)
(0.02
)
(0.02
)
Valuation allowance and other tax
adjustments, net (10)
(11
)
(0.01
)
(0.01
)
Adjusted net income (loss)
$
594
$
0.74
$
0.74
Weighted average common shares (millions):
(11)
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)
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
$(1).
(6)
Settlement costs, included in Other
expense, net, primarily represents certain costs associated with
legal and other settlements.
(7)
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 $21 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.
(8)
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.
(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 is due to a net increase or (decrease) to capital
losses, tax credit carryovers and other deferred tax assets subject
to valuation allowance of $21, the effects of changes in foreign
exchange rates on deferred tax assets and liabilities of $(28), and
other tax adjustments of $(2). Total amount is presented net of
income (loss) attributable to noncontrolling interests of $(2).
(11)
Adjusted net income (loss) per diluted
share is calculated using diluted common shares, which are
calculated in accordance with U.S. GAAP.
Earnings before interest, taxes, depreciation and
amortization and Adjusted earnings before interest, taxes,
depreciation and amortization
Management uses EBITDA and Adjusted EBITDA as non-GAAP measures
to evaluate the Company’s operating performance. EBITDA and
Adjusted EBITDA do not represent, and should not be considered an
alternative to, net income (loss), operating income (loss), or cash
flow from operations as those terms are defined by GAAP, and do not
necessarily indicate whether cash flows will be sufficient to fund
cash needs. Although Adjusted EBITDA and similar measures are
frequently used as measures of operations and the ability to meet
debt service requirements by other companies, our calculation of
Adjusted EBITDA is not necessarily comparable to such other
similarly titled captions of other companies. The Company believes
that Adjusted EBITDA provides useful information to investors and
others in understanding and evaluating our operating results in the
same manner as our management and Board of Directors. Management’s
determination of the components of Adjusted EBITDA are evaluated
periodically and based, in part, on a review of non-GAAP financial
measures used by mining industry analysts. Net income (loss)
attributable to Newmont stockholders is reconciled to EBITDA and
Adjusted EBITDA as follows:
Three Months Ended
March 31,
2022
2021
Net income (loss) attributable to Newmont
stockholders
$
448
$
559
Net income (loss) attributable to
noncontrolling interests
21
20
Net loss (Income) from discontinued
operations
(16
)
(21
)
Equity loss (income) of affiliates
(39
)
(50
)
Income and mining tax expense
(benefit)
214
235
Depreciation and amortization
547
553
Interest expense, net of capitalized
interest
62
74
EBITDA
$
1,237
$
1,370
Adjustments:
Pension settlement (1)
130
—
Change in fair value of investments
(2)
(39
)
110
(Gain) loss on asset and investment sales
(3)
35
(43
)
Reclamation and remediation charges
(4)
13
10
Settlement costs (5)
13
3
Restructuring and severance (6)
1
5
Impairment of long-lived and other assets
(7)
—
1
COVID-19 specific costs (8)
—
1
Adjusted EBITDA (9)
$
1,390
$
1,457
(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)
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.
(5)
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.
(6)
Restructuring and severance, included in
Other expense, net, primarily represents severance and related
costs associated with significant organizational or operating model
changes implemented by the Company for all periods presented.
(7)
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)
Adjusted EBITDA has not been adjusted for
$17 and $21 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 for the three months ended March
31, 2022 and 2021, respectively.
Additionally, the Company uses Pueblo Viejo EBITDA as a non-GAAP
measure to evaluate the operating performance of its investment in
the Pueblo Viejo mine. Pueblo Viejo EBITDA does not represent, and
should not be considered an alternative to, Equity income (loss) of
affiliates, as defined by GAAP, and does not necessarily indicate
whether cash distributions from Pueblo Viejo will match Pueblo
Viejo EBITDA or earnings from affiliates. Although the Company has
the ability to exert significant influence, it does not have direct
control over the operations or resulting revenues and expenses, nor
does it proportionately consolidate its investment in Pueblo Viejo.
The Company believes that Pueblo Viejo EBITDA provides useful
information to investors and others in understanding and evaluating
the operating results of its investment in Pueblo Viejo, in the
same manner as management and the Board of Directors. Equity income
(loss) of affiliates is reconciled to Pueblo Viejo EBITDA as
follows:
Three Months Ended
March 31,
2022
2021
Equity income (loss) of affiliates
$
39
$
50
Equity (income) loss of affiliates,
excluding Pueblo Viejo (1)
(4
)
—
Equity income (loss) of affiliates, Pueblo
Viejo (1)
35
50
Reconciliation of Pueblo Viejo on
attributable basis:
Income and mining tax expense
(benefit)
26
47
Depreciation and amortization
19
20
Pueblo Viejo EBITDA
$
80
$
117
(1) Refer to Note 10 of the Condensed
Consolidated Financial Statements.
The Company uses NGM EBITDA as a non-GAAP measure to evaluate
the operating performance of its investment in Nevada Gold Mines
(NGM). NGM EBITDA does not represent, and should not be considered
an alternative to, Income (loss) before income and mining tax and
other items, as defined by GAAP, and does not necessarily indicate
whether cash distributions from NGM will match NGM EBITDA. Although
the Company has the ability to exert significant influence and
proportionally consolidates its 38.5% interest in NGM, it does not
have direct control over the operations or resulting revenues and
expenses of its investment in NGM. The Company believes that NGM
EBITDA provides useful information to investors and others in
understanding and evaluating the operating results of its
investment in NGM, in the same manner as management and the Board
of Directors. Income (loss) before income and mining tax and other
items is reconciled to NGM EBITDA as follows:
Three Months Ended
March 31,
2022
2021
Income (Loss) before Income and Mining Tax
and other Items, NGM (1)
$
153
$
167
Depreciation and amortization (1)
125
127
NGM EBITDA
$
278
$
294
(1) Refer to Note 3 of the Condensed Consolidated Financial
Statements.
Free Cash Flow
Management uses Free Cash Flow as a non-GAAP measure to analyze
cash flows generated from operations. Free Cash Flow is Net cash
provided by (used in) operating activities less Net cash provided
by (used in) operating activities of discontinued operations less
Additions to property, plant and mine development as presented on
the Condensed Consolidated Statements of Cash Flows. The Company
believes Free Cash Flow is also useful as one of the bases for
comparing the Company’s performance with its competitors. Although
Free Cash Flow and similar measures are frequently used as measures
of cash flows generated from operations by other companies, the
Company’s calculation of Free Cash Flow is not necessarily
comparable to such other similarly titled captions of other
companies.
The presentation of non-GAAP Free Cash Flow is not meant to be
considered in isolation or as an alternative to net income as an
indicator of the Company’s performance, or as an alternative to
cash flows from operating activities as a measure of liquidity as
those terms are defined by GAAP, and does not necessarily indicate
whether cash flows will be sufficient to fund cash needs. The
Company’s definition of Free Cash Flow is limited in that it does
not represent residual cash flows available for discretionary
expenditures due to the fact that the measure does not deduct the
payments required for debt service and other contractual
obligations or payments made for business acquisitions. Therefore,
the Company believes it is important to view Free Cash Flow as a
measure that provides supplemental information to the Company’s
Condensed Consolidated Statements of Cash Flows.
The following table sets forth a reconciliation of Free Cash
Flow, a non-GAAP financial measure, to Net cash provided by (used
in) operating activities, which the Company believes to be the GAAP
financial measure most directly comparable to Free Cash Flow, as
well as information regarding Net cash provided by (used in)
investing activities and Net cash provided by (used in) financing
activities.
Three Months Ended March
31,
2022
2021
Net cash provided by (used in) operating
activities
$
694
$
841
Less: Net cash used in (provided by)
operating activities of discontinued operations
(5
)
—
Net cash provided by (used in) operating
activities of continuing operations
689
841
Less: Additions to property, plant and
mine development
(437
)
(399
)
Free Cash Flow
$
252
$
442
Net cash provided by (used in) investing
activities (1)
$
(519
)
$
(350
)
Net cash provided by (used in) financing
activities
$
(895
)
$
(511
)
(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,
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.
Three Months Ended March 31,
2021
Consolidated
Attributable to noncontrolling
interests (1)
Attributable to Newmont
Stockholders
Net cash provided by (used in) operating
activities
$
841
$
(20
)
$
821
Less: Net cash used in (provided by)
operating activities of discontinued operations
—
—
—
Net cash provided by (used in) operating
activities of continuing operations
841
(20
)
821
Less: Additions to property, plant and
mine development (2)
(399
)
16
(383
)
Free Cash Flow
$
442
$
(4
)
$
438
Net cash provided by (used in) investing
activities (3)
$
(350
)
Net cash provided by (used in) financing
activities
$
(511
)
(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 March 31, 2021,
Yanacocha and Merian had total consolidated Additions to property,
plant and mine development of $28 and $11, respectively, on a cash
basis.
(3)
Net cash provided by (used in) investing
activities includes Additions to property, plant and mine
development, which is included in the Company’s computation of Free
Cash Flow.
Costs applicable to sales per ounce/gold equivalent
ounce
Costs applicable to sales per ounce/gold equivalent ounce are
non-GAAP financial measures. These measures are calculated by
dividing the costs applicable to sales of gold and other metals by
gold ounces or gold equivalent ounces sold, respectively. These
measures are calculated for the periods presented on a consolidated
basis. Costs applicable to sales per ounce/gold equivalent ounce
statistics are intended to provide additional information only and
do not have any standardized meaning prescribed by GAAP and should
not be considered in isolation or as a substitute for measures of
performance prepared in accordance with GAAP. The measures are not
necessarily indicative of operating profit or cash flow from
operations as determined under GAAP. Other companies may calculate
these measures differently.
The following tables reconcile these non-GAAP measures to the
most directly comparable GAAP measures.
Costs applicable to sales per ounce
Three Months Ended March
31,
2022
2021
Costs applicable to sales (1)(2)
$
1,184
$
1,065
Gold sold (thousand ounces)
1,329
1,417
Costs applicable to sales per ounce
(3)
$
890
$
752
(1)
Includes by-product credits of $27 and $55
during the three months ended March 31, 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 March
31,
2022
2021
Costs applicable to sales (1)(2)
$
251
$
182
Gold equivalent ounces - other metals
(thousand ounces) (3)
350
327
Costs applicable to sales per ounce
(4)
$
717
$
555
(1)
Includes by-product credits of $2 and $1
during the three months ended March 31, 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 ounce for Nevada Gold Mines
(NGM)
Three Months Ended March
31,
2022
2021
Cost applicable to sales, NGM (1)(2)
$
257
$
227
Gold sold (thousand ounces), NGM
287
305
Costs applicable to sales per ounce, NGM
(3)
$
899
$
745
(1)
See Note 3 to the Condensed Consolidated
Financial Statements.
(2)
Excludes Depreciation and amortization and
Reclamation and remediation.
(3)
Per ounce measures may not recalculate due
to rounding.
All-In Sustaining Costs
Newmont has developed a metric that expands on GAAP measures,
such as cost of goods sold, and non-GAAP measures, such as costs
applicable to sales per ounce, to provide visibility into the
economics of our mining operations related to expenditures,
operating performance and the ability to generate cash flow from
our continuing operations.
Current GAAP measures used in the mining industry, such as cost
of goods sold, do not capture all of the expenditures incurred to
discover, develop and sustain production. Therefore, we believe
that all-in sustaining costs is a non-GAAP measure that provides
additional information to management, investors and analysts that
aids in the understanding of the economics of our operations and
performance compared to other producers and provides investors
visibility by better defining the total costs associated with
production.
All-in sustaining cost amounts are intended to provide
additional information only and do not have any standardized
meaning prescribed by GAAP and should not be considered in
isolation or as a substitute for measures of performance prepared
in accordance with GAAP. The measures are not necessarily
indicative of operating profit or cash flow from operations as
determined under GAAP. Other companies may calculate these measures
differently as a result of differences in the underlying accounting
principles, policies applied and in accounting frameworks such as
in IFRS, or by reflecting the benefit from selling non-gold metals
as a reduction to AISC. Differences may also arise related to
definitional differences of sustaining versus development (i.e.
non-sustaining) activities based upon each company’s internal
policies.
The following disclosure provides information regarding the
adjustments made in determining the all-in sustaining costs
measure:
Costs applicable to sales. Includes all direct and indirect
costs related to current production incurred to execute the current
mine plan. We exclude certain exceptional or unusual amounts from
CAS, such as significant revisions to recovery amounts. CAS
includes by-product credits from certain metals obtained during the
process of extracting and processing the primary ore-body. CAS is
accounted for on an accrual basis and excludes Depreciation and
amortization and Reclamation and remediation, which is consistent
with our presentation of CAS on the Condensed Consolidated
Statements of Operations. In determining AISC, only the CAS
associated with producing and selling an ounce of gold is included
in the measure. Therefore, the amount of gold CAS included in AISC
is derived from the CAS presented in the Company’s Condensed
Consolidated Statements of Operations less the amount of CAS
attributable to the production of other metals. The other metals'
CAS at those mine sites is disclosed in Note 3 of the Condensed
Consolidated Financial Statements. The allocation of CAS between
gold and other metals is based upon the relative sales value of
gold and other metals produced during the period.
Reclamation costs. Includes accretion expense related to
reclamation liabilities and the amortization of the related ARC for
the Company’s operating properties. Accretion related to the
reclamation liabilities and the amortization of the ARC assets for
reclamation does not reflect annual cash outflows but are
calculated in accordance with GAAP. The accretion and amortization
reflect the periodic costs of reclamation associated with current
production and are therefore included in the measure. The
allocation of these costs to gold and other metals is determined
using the same allocation used in the allocation of CAS between
gold and other metals.
Advanced projects, research and development and exploration.
Includes incurred expenses related to projects that are designed to
sustain current production and exploration. We note that as current
reserves are depleted, exploration and advanced projects are
necessary for us to replace the depleting reserves or enhance the
recovery and processing of the current reserves to sustain
production at existing operations. As these costs relate to
sustaining our production, and are considered a continuing cost of
a mining company, these costs are included in the AISC measure.
These costs are derived from the Advanced projects, research and
development and Exploration amounts presented in the Condensed
Consolidated Statements of Operations less incurred expenses
related to the development of new operations, or related to major
projects at existing operations where these projects will
materially benefit the operation in the future. The allocation of
these costs to gold and other metals is determined using the same
allocation used in the allocation of CAS between gold and other
metals. We also allocate these costs incurred at the Other North
America, Other Australia and Corporate and Other locations using
the proportion of CAS between gold and other metals.
General and administrative. Includes costs related to
administrative tasks not directly related to current production,
but rather related to supporting our corporate structure and
fulfilling our obligations to operate as a public company.
Including these expenses in the AISC metric provides visibility of
the impact that general and administrative activities have on
current operations and profitability on a per ounce basis. We
allocate these costs to gold and other metals at the Other North
America, Other Australia and Corporate and Other locations using
the proportion of CAS between gold and other metals.
Treatment and refining costs. Includes costs paid to smelters
for treatment and refining of our concentrates to produce the
salable metal. These costs are presented net as a reduction of
Sales on the Condensed Consolidated Statements of Operations. The
allocation of these costs to gold and other metals is determined
using the same allocation used in the allocation of CAS between
gold and other metals.
Sustaining capital and finance lease payments. We determined
sustaining capital and finance lease payments as those capital
expenditures and finance lease payments that are necessary to
maintain current production and execute the current mine plan. We
determined development (i.e. non-sustaining) capital expenditures
and finance lease payments to be those payments used to develop new
operations or related to projects at existing operations where
those projects will materially benefit the operation and are
excluded from the calculation of AISC. The classification of
sustaining and development capital projects and finance leases is
based on a systematic review of our project portfolio in light of
the nature of each project. Sustaining capital and finance lease
payments are relevant to the AISC metric as these are needed to
maintain the Company’s current operations and provide improved
transparency related to our ability to finance these expenditures
from current operations. The allocation of these costs to gold and
other metals is determined using the same allocation used in the
allocation of CAS between gold and other metals. We also allocate
these costs incurred at the Other North America, Other Australia
and Corporate and Other locations using the proportion of CAS
between gold and other metals.
Three Months Ended
March 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)
All-In Sustaining
Costs
Ounces (000) Sold
All-In Sustaining Costs Per
oz.(10)
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
Other North America
—
—
—
1
1
—
—
2
—
—
North America
310
10
5
1
5
7
45
383
312
1,230
Yanacocha
67
4
—
—
3
—
5
79
68
1,163
Merian
87
2
1
—
1
—
11
102
103
991
Cerro Negro
63
1
—
—
6
—
11
81
64
1,252
Other South America
—
—
—
3
—
—
—
3
—
—
South America
217
7
1
3
10
—
27
265
235
1,123
Boddington
162
5
1
—
—
3
13
184
198
931
Tanami
65
—
3
—
3
—
29
100
99
1,012
Other Australia
—
—
—
2
—
—
3
5
—
—
Australia
227
5
4
2
3
3
45
289
297
974
Ahafo
106
2
1
—
1
—
22
132
108
1,223
Akyem
67
7
1
—
—
—
10
85
90
942
Other Africa
—
—
—
2
—
—
—
2
—
—
Africa
173
9
2
2
1
—
32
219
198
1,106
Nevada Gold Mines
257
1
3
3
—
1
46
311
287
1,086
Nevada
257
1
3
3
—
1
46
311
287
1,086
Corporate and Other
—
—
23
43
(1
)
—
4
69
—
—
Total Gold
$
1,184
$
32
$
38
$
54
$
18
$
11
$
199
$
1,536
1,329
$
1,156
Gold equivalent ounces - other metals
(11)
Peñasquito
$
205
$
5
$
2
$
—
$
3
$
33
$
33
$
281
295
$
951
Other North America
—
—
—
1
—
—
—
1
—
—
North America
205
5
2
1
3
33
33
282
295
954
Boddington
46
1
—
—
—
2
4
53
55
959
Other Australia
—
—
—
—
—
—
1
1
—
—
Australia
46
1
—
—
—
2
5
54
55
976
Corporate and Other
—
—
5
9
—
—
—
14
—
—
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, $1 at Yanacocha, $2 at Merian, $3
at Cerro Negro, $9 at Other South America, $3 at Tanami, $3 at
Other Australia, $3 at Ahafo, $3 at Akyem, $3 at NGM and $4 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 $6 for North America, $7 for South America, $3 for
Australia and $1 for Africa, totaling $17.
(7)
Other expense, net is adjusted for
settlement costs of $13 and restructuring and severance costs of
$1.
(8)
Includes sustaining capital expenditures
of $66 for North America, $27 for South America, $46 for Australia,
$31 for Africa, $46 for Nevada, and $4 for Corporate and Other,
totaling $220 and 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.
(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
($3.25/lb.), Silver ($23.00/oz.), Lead ($0.95/lb.) and Zinc
($1.15/lb.) pricing for 2022.
Three Months Ended
March 31, 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
$
61
$
2
$
—
$
—
$
—
$
—
$
9
$
72
56
$
1,286
Musselwhite
39
—
2
—
—
—
9
50
39
1,305
Porcupine
66
1
4
—
—
—
9
80
74
1,104
Éléonore
53
1
1
—
2
—
18
75
61
1,226
Peñasquito
89
2
1
—
3
10
16
121
190
632
Other North America
—
—
1
2
—
—
—
3
—
—
North America
308
6
9
2
5
10
61
401
420
957
Yanacocha
50
12
2
—
8
—
2
74
61
1,215
Merian
81
1
—
—
1
—
10
93
108
864
Cerro Negro
40
1
1
—
6
—
11
59
47
1,263
Other South America
—
—
—
2
1
—
—
3
—
—
South America
171
14
3
2
16
—
23
229
216
1,063
Boddington
131
3
2
—
—
3
56
195
146
1,330
Tanami
70
—
1
—
1
—
25
97
122
796
Other Australia
—
—
—
3
—
—
1
4
—
—
Australia
201
3
3
3
1
3
82
296
268
1,104
Ahafo
92
2
2
—
1
—
17
114
104
1,094
Akyem
66
8
—
—
—
—
8
82
104
788
Other Africa
—
—
—
2
—
—
—
2
—
—
Africa
158
10
2
2
1
—
25
198
208
950
Nevada Gold Mines
227
2
2
3
—
—
31
265
305
868
Nevada
227
2
2
3
—
—
31
265
305
868
Corporate and Other
—
—
25
53
2
—
3
83
—
—
Total Gold
$
1,065
$
35
$
44
$
65
$
25
$
13
$
225
$
1,472
1,417
$
1,039
Gold equivalent ounces - other metals
(11)
Peñasquito
$
155
$
2
$
—
$
—
$
4
$
43
$
23
$
227
298
$
763
Other North America
—
—
—
—
—
—
—
—
—
—
North America
155
2
—
—
4
43
23
227
298
763
Boddington
27
1
—
—
—
1
12
41
29
1,404
Other Australia
—
—
—
—
—
—
—
—
—
—
Australia
27
1
—
—
—
1
12
41
29
1,404
Corporate and Other
—
—
—
—
—
—
—
—
—
—
Total Gold Equivalent Ounces
$
182
$
3
$
—
$
—
$
4
$
44
$
35
$
268
327
$
819
Consolidated
$
1,247
$
38
$
44
$
65
$
29
$
57
$
260
$
1,740
(1)
Excludes Depreciation and amortization and
Reclamation and remediation.
(2)
Includes by-product credits of $56 and
excludes co-product revenues of $390.
(3)
Includes stockpile and leach pad inventory
adjustments of $4 at CC&V and $10 at NGM.
(4)
Reclamation costs include operating
accretion and amortization of asset retirement costs of $20 and
$18, respectively, and exclude accretion and reclamation and
remediation adjustments at former operating properties and historic
mining operations that have entered the closure phase and have no
substantive future economic value of $13 and $13, respectively.
(5)
Advanced projects, research and
development and Exploration excludes development expenditures of $2
at CC&V, $1 at Porcupine, $1 at Éléonore, $1 at Yanacocha, $1
at Merian, $6 at Other South America, $2 at Tanami, $2 at Other
Australia, $1 at Ahafo, $1 at Akyem and $4 at NGM, totaling $22
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 $7 for North America, $12 for South America, $1 for
Australia and $1 for Africa, totaling $21.
(7)
Other expense, net is adjusted for
restructuring and severance costs of $5, settlement costs of $3,
distributions from the Newmont Global Community Support Fund of $1
and impairment of long-lived and other assets of $1.
(8)
Includes sustaining capital expenditures
of $73 for North America, $23 for South America, $88 for Australia,
$25 for Africa, $31 for Nevada, and $3 for Corporate and Other,
totaling $243 and excludes development capital expenditures,
capitalized interest and the change in accrued capital totaling
$156. See “Liquidity and Capital Resources” within Part I, Item 2,
Management's Discussion and Analysis 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.
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)
$ 5,000
Reclamation Costs (5)
150
Advanced Projects & Exploration
(6)
150
General and Administrative (7)
225
Other Expense
50
Treatment and Refining Costs
60
Sustaining Capital (8)
875
Sustaining Finance Lease Payments
40
All-in Sustaining Costs
$ 6,550
Ounces (000) Sold (9)
6,200
All-in Sustaining Costs per Oz
$ 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)
Consolidated production for Yanacocha and
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)
$ 900
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
$ 1,300
Co-Product GEO (000) Sold (9)
1,350
All-in Sustaining Costs per Co Product
GEO
$ 975
(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)
$ 5,900
Reclamation Costs (5)
170
Advanced Projects and Exploration (6)
170
General and Administrative (7)
260
Other Expense
70
Treatment and Refining Costs
220
Sustaining Capital (8)
1,000
Sustaining Finance Lease Payments
60
All-in Sustaining Costs
$ 7,850
Total GEO (000) Sold (9)
7,550
All-in Sustaining Costs per Total GEO
$ 1,030
(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 Yanacocha and
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
March 31, 2022
December 31, 2021
September 30, 2021
June 30, 2021
Net income (loss) attributable to Newmont
stockholders
$
448
$
(46
)
$
3
$
650
Net income (loss) attributable to
noncontrolling interests
21
(718
)
(246
)
11
Net loss (income) from discontinued
operations
(16
)
(15
)
(11
)
(10
)
Equity loss (income) of affiliates
(39
)
(28
)
(39
)
(49
)
Income and mining tax expense
(benefit)
214
300
222
341
Depreciation and amortization
547
639
570
561
Interest expense, net of capitalized
interest
62
66
66
68
EBITDA
1,237
198
565
1,572
EBITDA Adjustments:
Pension settlement
130
4
—
—
Change in fair value of investments
(39
)
(45
)
96
(26
)
(Gain) loss on asset and investment
sales
35
(166
)
(3
)
—
Reclamation and remediation charges
13
1,587
79
20
Settlement costs
13
—
—
8
Restructuring and severance
1
1
—
5
Loss on debt extinguishment
—
11
—
—
Impairment of long-lived and other
assets
—
7
6
11
COVID-19 specific costs
—
2
1
1
Loss on assets held for sale
—
—
571
—
Impairment of investments
—
—
1
—
Adjusted EBITDA
1,390
1,599
1,316
1,591
12 month trailing Adjusted
EBITDA
$
5,896
Total Debt
$
5,566
Lease and other financing obligations
644
Less: Cash and cash equivalents
4,272
Total net debt
$
1,938
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
March 31,
2022
2021
Consolidated gold sales, net
$ 2,514
$ 2,482
Consolidated copper sales, net
99
52
Consolidated silver sales, net
156
168
Consolidated lead sales, net
44
44
Consolidated zinc sales, net
210
126
Total sales
$ 3,023
$ 2,872
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.
Three Months Ended March 31,
2021
Gold
Copper
Silver
Lead
Zinc
(ounces)
(pounds)
(ounces)
(pounds)
(pounds)
Consolidated sales:
Gross before provisional pricing and
streaming impact
$
2,523
$
48
$
163
$
59
$
151
Provisional pricing mark-to-market
(28
)
5
—
(13
)
—
Silver streaming amortization
—
—
21
—
—
Gross after provisional pricing and
streaming impact
2,495
53
184
46
151
Treatment and refining charges
(13
)
(1
)
(16
)
(2
)
(25
)
Net
$
2,482
$
52
$
168
$
44
$
126
Consolidated ounces (thousands)/pounds
(millions) sold
1,417
12
8,531
50
119
Average realized price (per ounce/pound):
(1)
Gross before provisional pricing and
streaming impact
$
1,780
$
3.94
$
19.15
$
1.18
$
1.27
Provisional pricing mark-to-market
(20
)
0.36
0.05
(0.27
)
—
Silver streaming amortization
—
—
2.44
—
—
Gross after provisional pricing and
streaming impact
1,760
4.30
21.64
0.91
1.27
Treatment and refining charges
(9
)
(0.10
)
(1.91
)
(0.03
)
(0.21
)
Net
$
1,751
$
4.20
$
19.73
$
0.88
$
1.06
(1) Per ounce/pound measures may not recalculate due to rounding.
Gold by-product metrics
Copper, sliver, lead and zinc are by-products often obtained
during the process of extracting and processing the primary
ore-body. In our GAAP Consolidated Financial Statements, the value
of these by-products is recorded as a credit to our CAS and the
value of the primary ore is recorded as Sales. In certain
instances, copper, silver, lead and zinc are co-products, or a
significant resource in the primary ore-body, and the revenue is
recorded as Sales in our GAAP Consolidated Financial
Statements.
Gold by-product metrics are non-GAAP financial measures that
serve as a basis for comparing the Company’s performance with
certain competitors. As Newmont’s operations are primarily focused
on gold production, “Gold by-product metrics” were developed to
allow investors to view Sales, CAS per ounce and AISC per ounce
calculations that classify all copper, silver, lead and zinc
production as a by-product, even when copper, silver, lead or zinc
is a significant resource in the primary ore-body. These metrics
are calculated by subtracting copper, silver, lead and zinc sales
recognized from Sales and including these amounts as offsets to
CAS.
Gold by-product metrics are calculated on a consistent basis for
the periods presented on a consolidated basis. These metrics are
intended to provide supplemental information only, do not have any
standardized meaning prescribed by GAAP and should not be
considered in isolation or as a substitute for measures of
performance prepared in accordance with GAAP. Other companies may
calculate these measures differently as a result of differences in
the underlying accounting principles, policies applied and in
accounting frameworks, such as in IFRS.
The following tables reconcile these non-GAAP measures to the
most directly comparable GAAP measures:
Three Months Ended March
31,
2022
2021
Consolidated gold sales, net
$
2,514
$
2,482
Consolidated other metal sales, net
509
390
Sales
$
3,023
$
2,872
Costs applicable to sales
$
1,435
$
1,247
Less: Consolidated other metal sales,
net
(509
)
(390
)
By-Product costs applicable to sales
$
926
$
857
Gold sold (thousand ounces)
1,329
1,417
Total Gold CAS per ounce (by-product)
(1)
$
697
$
605
Total AISC
$
1,886
$
1,740
Less: Consolidated other metal sales,
net
(509
)
(390
)
By-Product AISC
$
1,377
$
1,350
Gold sold (thousand ounces)
1,329
1,417
Total Gold AISC per ounce (by-product)
(1)
$
1,036
$
953
(1) Per ounce measures may not recalculate due to rounding.
Conference Call Information
A conference call will be held on Friday, April 22, 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
758353
Conference Name
Newmont
Replay Number
866.813.9403
Intl. Replay Number
44.204.525.0658
Replay Access Code
545073
Webcast Details
Title: Newmont First Quarter 2022 Earnings Conference Call URL:
https://event.on24.com/wcc/r/3715550/C621AA00E03BE92EA450A184A02FE28B
The first quarter 2022 results will be available before the
market opens on Friday, April 22, 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 June
16, 2022 to holders of record at the close of business on June 2,
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 March 31, 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/20220421006049/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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