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Newmont Announces Second Quarter 2022 Results

Newmont delivers solid second quarter production and free cash flow results from leading portfolio of long-life, responsibly managed assets; updates full-year guidance

Newmont Corporation (NYSE: NEM, TSX: NGT) (Newmont or the Company) today announced second quarter 2022 results.

SECOND QUARTER 2022 RESULTS

  • Produced 1.5 million attributable ounces of gold and 330 thousand attributable gold equivalent ounces (GEO) from co-products, an increase of more than 130 thousand total gold equivalent ounces from the first quarter
  • Generated $1.0 billion of cash from continuing operations and $514 million of Free Cash Flow (97 percent attributable to Newmont)*
  • Reported gold Costs Applicable to Sales (CAS)* of $932 per ounce and All-In Sustaining Costs (AISC)* of $1,199 per ounce
  • Adjusted Net Income (ANI) of $0.46 per share and Adjusted EBITDA of $1,149, impacted by increasing costs and declining metal prices
  • Updated full-year guidance of 6.0 million ounces of attributable gold production, CAS of $900 per ounce and AISC of $1,150 per ounce; reaffirmed original guidance of 1.3 million gold equivalent ounces from copper, silver, lead and zinc with updated co-product cost guidance of $750 per GEO of CAS and $1,050 per GEO of AISC**
  • Updated full-year guidance for development capital spend to $1.1 billion; Provided trends on development capital costs and timeline related to Tanami Expansion 2 and Ahafo North
  • Declared second quarter dividend of $0.55 per share, consistent with the previous seven quarters***
  • $1 billion share repurchase program to be used opportunistically in 2022, with $475 million remaining***
  • Ended the quarter with $4.3 billion of consolidated cash and $7.3 billion of liquidity with a net debt to adjusted EBITDA ratio of 0.3x*
  • Advancing profitable near-term projects, including Tanami Expansion 2, Ahafo North and Yanacocha Sulfides
  • Completed acquisition of Sumitomo Corporation's 5 percent interest in Yanacocha, increasing ownership in Sulfides project to 100 percent
  • Maintained a clear focus on managing the critical controls that must be in place at all times to prevent fatalities; 155 thousand critical control verifications completed by leaders in the field
  • Published our 2021 Sustainability Reporting Suite, including our second Annual Climate Report, prepared in accordance with the Task Force for Climate Disclosure (TCFD) framework, detailing the pathway to achieve 2030 carbon emissions reduction targets and 2050 goal

"Newmont delivered a solid second quarter performance, producing 1.5 million gold ounces and generating $514 million in free cash flow. Through our industry-leading portfolio of assets and projects, our proven integrated operating model, our balanced and disciplined approach to capital allocation and our values-driven commitment to our purpose of creating value and improving lives through sustainable and responsible mining, Newmont remains well-positioned to safely manage through the evolving and unprecedented challenges that face our industry and the world at large."

- Tom Palmer, Newmont President and Chief Executive Officer

___________________________

*

Non-GAAP metrics; see reconciliations at the end of this release.

**

See discussion of outlook and cautionary statement at end of release regarding forward-looking statements.

***

See cautionary statement at the end of this release, including with respect to future dividends and share buybacks.

SECOND QUARTER 2022 FINANCIAL AND PRODUCTION SUMMARY

 

Q2'22

Q1'22

Q2'21

Average realized gold price ($ per ounce)

$

1,836

$

1,892

$

1,823

Attributable gold production (million ounces)

 

1.50

 

1.34

 

1.45

Gold costs applicable to sales (CAS) ($ per ounce)

$

932

$

890

$

755

Gold all-in sustaining costs (AISC) ($ per ounce)

$

1,199

$

1,156

$

1,035

GAAP net income from continuing operations ($ millions)

$

379

$

432

$

640

Adjusted net income ($ millions)

$

362

$

546

$

670

Adjusted EBITDA ($ millions)

$

1,149

$

1,390

$

1,591

Cash flow from continuing operations ($ millions)

$

1,033

$

689

$

993

Capital expenditures ($ millions)

$

519

$

437

$

415

Free cash flow ($ millions)

$

514

$

252

$

578

Attributable gold production1 increased 3 percent to 1,495 thousand ounces from the prior year quarter primarily due to higher ore grade milled at Boddington, Ahafo and Tanami and a draw-down of in-circuit inventory compared to a build in the prior year. In addition, the current quarter benefited from the increased ownership at Yanacocha due to the acquisition of Buenaventura's 43.65% ownership in February 2022. These increases were partially offset by lower ore grade milled and lower throughput at Peñasquito and Éléonore.

Gold CAS totaled $1.4 billion for the quarter. Gold CAS per ounce2 increased 23 percent to $932 per ounce from the prior year quarter primarily due to higher direct operating costs as a result of inflationary pressures, driven by higher labor costs and an increase in commodity inputs, including higher fuel and energy costs; as well as lower by-product credits at Yanacocha and a draw-down of higher cost in-circuit inventory compared to a build in the prior year. In addition, Gold CAS includes the allocation of $22 million for the Peñasquito profit-sharing agreement entered into during the second quarter of 2022 related to 2021 results.

Gold AISC per ounce3 increased 16 percent to $1,199 per ounce from the prior year quarter primarily due to higher CAS per ounce.

Attributable gold equivalent ounce (GEO) production from other metals increased 9 percent to 330 thousand ounces primarily due to higher ore grade milled at Boddington and higher mill recovery and throughput at Peñasquito.

CAS from other metals totaled $327 million for the quarter. CAS per GEO2 increased 56 percent to $983 per ounce from the prior year quarter primarily due to higher allocation of costs to other metals and higher direct operating costs as a result of inflationary pressures, driven by higher labor costs and an increase in commodity inputs, including higher fuel and energy costs. In addition, CAS from other metals includes the allocation of $48 million related to the Peñasquito profit-sharing agreement entered into during the second quarter of 2022 related to 2021 results.

AISC per GEO3 increased 45 percent to $1,286 per ounce primarily due to higher CAS per GEO and higher treatment and refining costs.

Average realized price for gold was $1,836, an increase of $13 per ounce over the prior year quarter. Average realized gold price includes $1,858 per ounce of gross price received, an unfavorable impact of $14 per ounce mark-to-market on provisionally-priced sales and reductions of $8 per ounce for treatment and refining charges.

Revenue remained flat at $3.1 billion compared to the prior year quarter as higher average realized gold prices and higher gold sales volumes were offset by lower average realized co-product metal prices.

Net income from continuing operations attributable to Newmont stockholders was $379 million or $0.48 per diluted share, a decrease of $261 million from the prior year quarter primarily due to higher CAS predominately resulting from the impacts of inflation and the Peñasquito profit-sharing agreement entered into during the second quarter of 2022, as well as unrealized losses on marketable and other equity securities. These decreases were partially offset by lower income tax expense.

Adjusted net income4 was $362 million or $0.46 per diluted share, compared to $670 million or $0.83 per diluted share in the prior year quarter. Primary adjustments to second quarter net income include changes in the fair value of investments and valuation allowance and other tax adjustments, including an $125 million tax settlement in Mexico.

Adjusted EBITDA5 decreased 28 percent to $1.1 billion for the quarter, compared to $1.6 billion for the prior year quarter.

Capital expenditures6 increased 25 percent from the prior year quarter to $519 million primarily due to higher development capital spend. Development capital expenditures in 2022 primarily include advancing Tanami Expansion 2, Yanacocha Sulfides, Ahafo North, Pamour and Cerro Negro District Expansion 1.

Consolidated operating cash flow from continuing operations increased 4 percent from the prior year quarter to $1.0 billion primarily due to a decrease in accounts receivable and increase in accounts payable due to the timing of receipts and payments to vendors, respectively, and a decrease in tax payments. These increases were partially offset by an increase in payments for reclamation and remediation obligations. Free Cash Flow7 decreased to $514 million from $578 million in the prior year quarter primarily due to higher development capital expenditures, partially offset by higher operating cash flow.

Balance sheet and liquidity ended the quarter with $4.3 billion of consolidated cash and approximately $7.3 billion of liquidity; reported net debt to adjusted EBITDA of 0.3x8.

Nevada Gold Mines (NGM) attributable gold production was 290 thousand ounces, with CAS of $1,035 per ounce and AISC of $1,263 per ounce for the second quarter. NGM EBITDA9 was $218 million.

Pueblo Viejo (PV) attributable gold production was 70 thousand ounces for the quarter. Cash distributions received for the Company's equity method investment in Pueblo Viejo totaled $48 million in the second quarter.

SECOND QUARTER 2022 EARNINGS DRIVERS

Compared to the first quarter of 2022, earnings were negatively impacted by higher labor, materials and consumables costs of approximately $80 million, higher fuel and energy costs of approximately $50 million and the $70 million expense recognized in the second quarter related to the Peñasquito profit-sharing agreement announced in early July. In addition, lower realized metals prices, including unfavorable mark-to-market adjustments on provisionally-priced sales, impacted earnings by approximately $225 million compared to the first quarter. These impacts were partially offset by approximately $250 million of higher sales volumes in the second quarter.

COVID UPDATE

Newmont continues to maintain wide-ranging protective measures for its workforce and neighboring communities, including screening, physical distancing, deep cleaning and avoiding exposure for at-risk individuals. The Company incurred incremental Covid specific costs of $10 million during the quarter for activities such as additional health and safety procedures, increased transportation and distributions from the Newmont Global Community Support Fund. The majority of the additional incremental Covid specific costs have not been adjusted from our non-GAAP metrics.

PROJECTS UPDATE10

Newmont’s project pipeline supports stable production with improving margins and mine life. Newmont's 2022 and longer-term outlook includes current development capital costs and production related to Tanami Expansion 2, Ahafo North, Yanacocha Sulfides, Pamour and Cerro Negro District Expansion 1. Additional projects not listed below represent incremental improvements to the Company's outlook.

  • Tanami Expansion 2 (Australia) secures Tanami’s future as a long-life, low-cost producer to extend mine life beyond 2040 through the addition of a 1,460 meter hoisting shaft and supporting infrastructure to process 3.3 million tonnes per year and provide a platform for future growth. The expansion is expected to increase average annual gold production by approximately 150,000 to 200,000 ounces per year for the first five years and reduce operating costs by approximately 10 percent. Development costs (excluding capitalized interest) since approval were $395 million, of which $111 million related to the six months ended June 30, 2022. Total capital costs are expected to be approximately 25% above the prior estimate, incorporating the significant impacts from Covid-related restrictions and protocols and the current market conditions for labor and materials. Commercial production for the project is now expected to be in early 2025. Formal updates to capital estimates and estimated project completion will be provided later in the year.
  • Ahafo North (Africa) expands our existing footprint in Ghana with four open pit mines and a stand-alone mill located approximately 30 kilometers from the Company’s Ahafo South operations. The project is expected to add between 275,000 and 325,000 ounces per year for the first five full years of production. Ahafo North is the best unmined gold deposit in West Africa with approximately 3.5 million ounces of Reserves and more than 1 million ounces of Measured, Indicated and Inferred Resources and significant upside potential to extend beyond Ahafo North’s current 13-year mine life. Development costs (excluding capitalized interest) since approval were $142 million, of which $75 million related to the six months ended June 30, 2022. Total capital costs are expected to be approximately 15% above the prior estimate, incorporating the cost associated with delayed land access. Commercial production for the project is now expected to be in mid-2025. Formal updates to capital estimates and estimated project completion will be provided later in the year.
  • Yanacocha Sulfides (South America) will develop the first phase of sulfide deposits and an integrated processing circuit, including an autoclave to produce 45% gold, 45% copper and 10% silver. The project is expected to add average annual production of 525,000 gold equivalent ounces per year for the first five full years (2027-2031). Total capital costs for the project are estimated at $2.5 billion from the investment decision date, expected in late 2022, with a three year development period. The first phase focuses on developing the Yanacocha Verde and Chaquicocha deposits to extend Yanacocha’s operations beyond 2040 with second and third phases having the potential to extend life for multiple decades.
  • Pamour (North America) extends the life of Porcupine and maintains production beginning in 2024. The project will optimize mill capacity, adding volume and supporting high grade ore from Borden and Hoyle Pond, while supporting further exploration in a highly prospective and proven mining district. An investment decision is expected in the second half of 2022 with estimated capital costs between $350 and $450 million.
  • Cerro Negro District Expansion 1 (South America) includes the simultaneous development of the Marianas and Eastern districts to extend the mine life of Cerro Negro beyond 2030. The project is expected to improve production to above 350,000 ounces beginning in 2024. Development capital costs for the project are estimated to be approximately $300 million. This project provides a platform for further exploration and future growth through additional expansions.

________________________________________________

1

Attributable gold production for the second quarter 2022 includes 70 thousand ounces from the Company’s equity method investment in Pueblo Viejo (40%).

2

Non-GAAP measure. See end of this release for reconciliation to Costs applicable to sales.

3

Non-GAAP measure. See end of this release for reconciliation to Costs applicable to sales.

4

Non-GAAP measure. See end of this release for reconciliation to Net income (loss) attributable to Newmont stockholders.

5

Non-GAAP measure. See end of this release for reconciliation to Net income (loss) attributable to Newmont stockholders.

6

Capital expenditures refers to Additions to property plant and mine development from the Condensed Consolidated Statements of Cash Flows.

7

Non-GAAP measure. See end of this release for reconciliation to Net cash provided by operating activities.

8

Non-GAAP measure. See end of this release for reconciliation.

9

Non-GAAP measure. See end of this release for reconciliation.

10

Project estimates remain subject to change based upon uncertainties, including future impacts of Covid-19 and other cost pressures, supply chain disruptions and availabilities, commodity price volatility and other factors, which may impact estimated capital expenditures, AISC and timing of projects. See end of this release for cautionary statement regarding forward-looking statements.

UPDATED OUTLOOK

Newmont is providing updated 2022 outlook due to impacts on gold production estimates in the first half of the year, as well as the continued impact from inflationary pressures on costs. Please see the cautionary statement in the end notes for additional information. For further discussion, investors are encouraged to attend Newmont’s Second Quarter 2022 Earnings Conference Call.

Newmont's updated 2022 outlook includes 6.0 million ounces of attributable gold production and 1.3 million gold equivalent ounces from copper, silver, lead and zinc. The revised outlook for attributable gold production includes negative impacts from operational challenges at Ahafo, a transition to a leach-only operation at CC&V, as well as challenges from a competitive labor market, primarily in Canada and Australia.

Ahafo experienced challenges due to labor availability and supply chain disruptions impacting the delivery of new equipment and critical spares, which affected our ability to ramp-up mining rates at Subika Underground. As a result, Ahafo's full-year production was reduced by approximately 80 thousand ounces. The CC&V operation has begun the transition to a higher-value, longer-life leach-only operation, resulting in a reduction in full-year production of approximately 40 thousand ounces. In addition, Newmont continues to experience lower productivity as a result of a competitive labor market in Canada in Australia, resulting in full-year production impacts of approximately 50 thousand ounces and 30 thousand ounces in those regions, respectively.

Updated 2022 CAS outlook is expected to be $900 per gold ounce and $750 per co-product gold equivalent ounce. Updated 2022 AISC outlook is expected to be $1,150 per gold ounce and $1,050 per co-product gold equivalent ounce. The revised outlook includes the impact from lower production volumes and higher direct operating costs related to labor, energy, consumables and supplies as a result of sustained inflationary pressures.

Development capital is expected to be $1.1 billion for 2022 to incorporate delays in spending at Yanacocha Sulfides and Ahafo North.

General and administrative expense is expected to be $270 million, incorporating slight increases in labor costs due to inflationary pressures. Interest expense is expected to be $200 million, a reduction of $25 million following the timely refinancing of our 2022 and 2023 notes in December of last year.

Newmont 2022 Outlook a

Updated

(as of July 25, 2022)

Previous

(as of Dec. 2, 2021)

Consolidated Gold Production (Moz)

5.9

6.1

Attributable Gold Production (Moz) b

6.0

6.2

Consolidated Gold CAS ($/oz)

900

820

Consolidated Gold AISC($/oz) c

1,150

1,050

Consolidated Co-Product GEO Production (Moz) d

1.3

1.3

Attributable Co-Product GEO Production (Moz) d

1.3

1.3

Consolidated Co-Product GEO CAS ($/oz) d

750

675

Consolidated Co-Product GEO AISC ($/oz) c,d

1,050

975

Consolidated Total GEO Production (Moz) d

7.2

7.4

Attributable Total GEO Production (Moz) d

7.3

7.5

Consolidated Total GEO CAS ($/oz) d

875

800

Consolidated Total GEO AISC ($/oz) c,d

1,130

1,030

Consolidated Sustaining Capital Expenditures ($M)

1,000

1,000

Consolidated Development Capital Expenditures ($M)

1,100

1,400

Attributable Sustaining Capital Expenditures ($M)

925

925

Attributable Development Capital Expenditures ($M) e

1,100

1,400

General & Administrative ($M)

270

260

Interest Expense ($M)

200

225

Depreciation and Amortization ($M)

2,300

2,300

Exploration & Advanced Projects ($M)

450

450

Adjusted Tax Rate f,g

30% - 34%

30% - 34%

a

 

2022 outlook projections are considered forward-looking statements and represent management’s good faith estimates or expectations of future production results as of July 25, 2022. Outlook is based upon certain assumptions, including, but not limited to, metal prices, oil prices, certain exchange rates and other assumptions. For example, updated 2022 Outlook includes actual results through June 30, 2022 and assumes $1,800/oz Au, $4.10/lb Cu, $21.00/oz Ag, $1.60/lb Zn, $0.95/lb Pb, $0.74 USD/AUD exchange rate, $0.80 USD/CAD exchange rate and $110/barrel WTI for the second half of 2022. Production, CAS, AISC and capital estimates exclude projects that have not yet been approved, except for Yanacocha Sulfides, Pamour and Cerro Negro District Expansion 1 which are included in Outlook. The potential impact on inventory valuation as a result of lower prices, input costs, and project decisions are not included as part of this Outlook. Assumptions used for purposes of Outlook may prove to be incorrect and actual results may differ from those anticipated, including variation beyond a +/-5% range. Outlook cannot be guaranteed. As such, investors are cautioned not to place undue reliance upon Outlook and forward-looking statements as there can be no assurance that the plans, assumptions or expectations upon which they are placed will occur. Amounts may not recalculate to totals due to rounding. See cautionary at the end of this release.

b

 

Attributable gold production outlook includes the Company’s equity investment (40%) in Pueblo Viejo with ~285Koz in 2022; does not include the Company’s other equity investments. Attributable gold production outlook represents the Company's 75% interest in Merian.

c

 

All-in sustaining costs (AISC) as used in the Company’s Outlook is a non-GAAP metric; see below for further information and reconciliation to consolidated 2022 CAS outlook.

d

 

Gold equivalent ounces (GEO) is calculated as pounds or ounces produced multiplied by the ratio of the other metal’s price to the gold price, using Gold ($1,200/oz.), Copper ($3.25/lb.), Silver ($23.00/oz.), Lead ($0.95/lb.), and Zinc ($1.15/lb.) pricing.

e

 

Attributable development capital accounts for the acquisition of the remaining interest in Yanacocha, including Buenaventura's 43.65% interest and Sumitomo Corporation's 5% interest, as announced on February 8, 2022 and April 12, 2022, respectively.

f

 

The adjusted tax rate excludes certain items such as tax valuation allowance adjustments.

g

 

Assuming average prices of $1,800 per ounce for gold, $3.25 per pound for copper, $23.00 per ounce for silver, $0.95 per pound for lead, and $1.15 per pound for zinc and achievement of current production and sales volumes and cost estimates, we estimate our consolidated adjusted effective tax rate related to continuing operations for 2022 will be between 30%-34%.

 

Three Months Ended June 30,

 

Six Months Ended June 30,

Operating Results

2022

2021

% Change

 

2022

2021

% Change

Attributable Sales (koz)

 

 

 

 

 

 

 

Attributable gold ounces sold (1)

 

1,455

 

1,383

5

%

 

 

2,746

 

2,744

%

Attributable gold equivalent ounces sold

 

333

 

302

10

%

 

 

683

 

629

9

%

 

 

 

 

 

 

 

 

Average Realized Price ($/oz, $/lb)

 

 

 

 

 

 

 

Average realized gold price

$

1,836

$

1,823

1

%

 

$

1,863

$

1,788

4

%

Average realized copper price

$

2.99

$

4.37

(32

) %

 

$

3.81

$

4.30

(11

) %

Average realized silver price

$

17.42

$

23.00

(24

) %

 

$

18.85

$

21.27

(11

) %

Average realized lead price

$

0.80

$

1.02

(22

) %

 

$

0.94

$

0.95

(1

) %

Average realized zinc price

$

1.08

$

1.34

(19

) %

 

$

1.47

$

1.19

24

%

 

 

 

 

 

 

 

 

Attributable Production (koz)

 

 

 

 

 

 

 

North America

 

316

 

397

(20

) %

 

 

625

 

810

(23

) %

South America

 

210

 

189

11

%

 

 

408

 

363

12

%

Australia

 

366

 

299

22

%

 

 

648

 

568

14

%

Africa

 

243

 

202

20

%

 

 

441

 

407

8

%

Nevada

 

290

 

284

2

%

 

 

578

 

587

(2

) %

Total Gold (excluding equity method investments)

 

1,425

 

1,371

4

%

 

 

2,700

 

2,735

(1

) %

Pueblo Viejo (40%) (2)

 

70

 

78

(10

) %

 

 

139

 

169

(18

) %

Total Gold

 

1,495

 

1,449

3

%

 

 

2,839

 

2,904

(2

) %

 

 

 

 

 

 

 

 

North America

 

266

 

260

2

%

 

 

565

 

545

4

%

Australia

 

64

 

43

49

%

 

 

115

 

75

53

%

Total Gold Equivalent Ounces

 

330

 

303

9

%

 

 

680

 

620

10

%

 

 

 

 

 

 

 

 

CAS Consolidated ($/oz, $/GEO)

 

 

 

 

 

 

 

North America

$

1,124

$

769

46

%

 

$

1,061

$

752

41

%

South America

$

982

$

721

36

%

 

$

952

$

753

26

%

Australia

$

710

$

764

(7

) %

 

$

734

$

757

(3

) %

Africa

$

838

$

763

10

%

 

$

853

$

760

12

%

Nevada

$

1,035

$

753

37

%

 

$

967

$

749

29

%

Total Gold

$

932

$

755

23

%

 

$

912

$

754

21

%

Total Gold (by-product)

$

926

$

586

58

%

 

$

818

$

595

37

%

 

 

 

 

 

 

 

 

North America

$

1,054

$

586

80

%

 

$

864

$

550

57

%

Australia

$

710

$

898

(21

) %

 

$

765

$

913

(16

) %

Total Gold Equivalent Ounces

$

983

$

629

56

%

 

$

846

$

590

43

%

 

 

 

 

 

 

 

 

AISC Consolidated ($/oz, $/GEO)

 

 

 

 

 

 

 

North America

$

1,437

$

985

46

%

 

$

1,336

$

971

38

%

South America

$

1,203

$

1,022

18

%

 

$

1,164

$

1,041

12

%

Australia

$

873

$

997

(12

) %

 

$

917

$

1,048

(13

) %

Africa

$

1,017

$

1,000

2

%

 

$

1,057

$

974

9

%

Nevada

$

1,263

$

985

28

%

 

$

1,176

$

924

27

%

Total Gold

$

1,199

$

1,035

16

%

 

$

1,179

$

1,037

14

%

Total Gold (by-product)

$

1,261

$

918

37

%

 

$

1,155

$

935

24

%

 

 

 

 

 

 

 

 

North America

$

1,349

$

761

77

%

 

$

1,140

$

762

50

%

Australia

$

829

$

1,113

(26

) %

 

$

895

$

1,231

(27

) %

Total Gold Equivalent Ounces

$

1,286

$

886

45

%

 

$

1,138

$

851

34

%

1

 

Attributable gold ounces from the Pueblo Viejo mine, an equity method investment, are not included in attributable gold ounces sold.

2

 

Represents attributable gold from Pueblo Viejo and does not include the Company's other equity method investments. Attributable gold ounces produced at Pueblo Viejo are not included in attributable gold ounces sold, as noted in footnote 1. Income and expenses of equity method investments are included in Equity income (loss) of affiliates.

NEWMONT CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited, in millions except per share)

 

 

Three Months Ended

June 30,

 

Six Months Ended

June 30,

 

2022

 

2021

 

2022

 

2021

 

 

 

 

 

 

 

 

Sales

$

3,058

 

 

$

3,065

 

 

$

6,081

 

 

$

5,937

 

 

 

 

 

 

 

 

 

Costs and expenses

 

 

 

 

 

 

 

Costs applicable to sales (1)

 

1,708

 

 

 

1,281

 

 

 

3,143

 

 

 

2,528

 

Depreciation and amortization

 

559

 

 

 

561

 

 

 

1,106

 

 

 

1,114

 

Reclamation and remediation

 

49

 

 

 

57

 

 

 

110

 

 

 

103

 

Exploration

 

62

 

 

 

52

 

 

 

100

 

 

 

87

 

Advanced projects, research and development

 

45

 

 

 

37

 

 

 

89

 

 

 

68

 

General and administrative

 

73

 

 

 

64

 

 

 

137

 

 

 

129

 

Other expense, net

 

22

 

 

 

52

 

 

 

57

 

 

 

91

 

 

 

2,518

 

 

 

2,104

 

 

 

4,742

 

 

 

4,120

 

Other income (expense):

 

 

 

 

 

 

 

Other income (loss), net

 

(75

)

 

 

50

 

 

 

(184

)

 

 

11

 

Interest expense, net of capitalized interest

 

(57

)

 

 

(68

)

 

 

(119

)

 

 

(142

)

 

 

(132

)

 

 

(18

)

 

 

(303

)

 

 

(131

)

Income (loss) before income and mining tax and other items

 

408

 

 

 

943

 

 

 

1,036

 

 

 

1,686

 

Income and mining tax benefit (expense)

 

(33

)

 

 

(341

)

 

 

(247

)

 

 

(576

)

Equity income (loss) of affiliates

 

17

 

 

 

49

 

 

 

56

 

 

 

99

 

Net income (loss) from continuing operations

 

392

 

 

 

651

 

 

 

845

 

 

 

1,209

 

Net income (loss) from discontinued operations

 

8

 

 

 

10

 

 

 

24

 

 

 

31

 

Net income (loss)

 

400

 

 

 

661

 

 

 

869

 

 

 

1,240

 

Net loss (income) attributable to noncontrolling interests

 

(13

)

 

 

(11

)

 

 

(34

)

 

 

(31

)

Net income (loss) attributable to Newmont stockholders

$

387

 

 

$

650

 

 

$

835

 

 

$

1,209

 

 

 

 

 

 

 

 

 

Net income (loss) attributable to Newmont stockholders:

 

 

 

 

 

 

 

Continuing operations

$

379

 

 

$

640

 

 

$

811

 

 

$

1,178

 

Discontinued operations

 

8

 

 

 

10

 

 

 

24

 

 

 

31

 

 

$

387

 

 

$

650

 

 

$

835

 

 

$

1,209

 

 

 

 

 

 

 

 

 

Weighted average common shares (millions):

 

 

 

 

 

 

 

Basic

 

794

 

 

 

801

 

 

 

793

 

 

 

801

 

Effect of employee stock-based awards

 

1

 

 

 

2

 

 

 

2

 

 

 

1

 

Diluted

 

795

 

 

 

803

 

 

 

795

 

 

 

802

 

 

 

 

 

 

 

 

 

Net income (loss) attributable to Newmont stockholders per common share

 

 

 

 

 

 

 

Basic:

 

 

 

 

 

 

 

Continuing operations

$

0.48

 

 

$

0.80

 

 

$

1.02

 

 

$

1.47

 

Discontinued operations

 

0.01

 

 

 

0.01

 

 

 

0.03

 

 

 

0.04

 

 

$

0.49

 

 

$

0.81

 

 

$

1.05

 

 

$

1.51

 

Diluted:

 

 

 

 

 

 

 

Continuing operations

$

0.48

 

 

$

0.80

 

 

$

1.02

 

 

$

1.47

 

Discontinued operations

 

0.01

 

 

 

0.01

 

 

 

0.03

 

 

 

0.04

 

 

$

0.49

 

 

$

0.81

 

 

$

1.05

 

 

$

1.51

 

1

 

Excludes Depreciation and amortization and Reclamation and remediation.

NEWMONT CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited, in millions)

 

 

Three Months Ended

June 30,

 

Six Months Ended

June 30,

 

2022

 

2021

 

2022

 

2021

Operating activities:

 

 

 

 

 

 

 

Net income (loss)

$

400

 

 

$

661

 

 

$

869

 

 

$

1,240

 

Non-cash adjustments:

 

 

 

 

 

 

 

Depreciation and amortization

 

559

 

 

 

561

 

 

 

1,106

 

 

 

1,114

 

Net loss (income) from discontinued operations

 

(8

)

 

 

(10

)

 

 

(24

)

 

 

(31

)

Charges from pension settlement

 

 

 

 

 

 

 

130

 

 

 

 

Deferred income taxes

 

(70

)

 

 

39

 

 

 

(111

)

 

 

14

 

Reclamation and remediation

 

46

 

 

 

53

 

 

 

103

 

 

 

96

 

Change in fair value of investments

 

135

 

 

 

(26

)

 

 

96

 

 

 

84

 

Stock-based compensation

 

22

 

 

 

21

 

 

 

40

 

 

 

38

 

Other non-cash adjustments

 

(14

)

 

 

(40

)

 

 

15

 

 

 

(130

)

Net change in operating assets and liabilities

 

(37

)

 

 

(266

)

 

 

(502

)

 

 

(591

)

Net cash provided by (used in) operating activities of continuing operations

 

1,033

 

 

 

993

 

 

 

1,722

 

 

 

1,834

 

Net cash provided by (used in) operating activities of discontinued operations

 

10

 

 

 

2

 

 

 

15

 

 

 

2

 

Net cash provided by (used in) operating activities

 

1,043

 

 

 

995

 

 

 

1,737

 

 

 

1,836

 

 

 

 

 

 

 

 

 

Investing activities:

 

 

 

 

 

Additions to property, plant and mine development

 

(519

)

 

 

(415

)

 

 

(956

)

 

 

(814

)

Contributions to equity method investees

 

(39

)

 

 

(45

)

 

 

(91

)

 

 

(72

)

Payment relating to sale of La Zanja

 

 

 

 

 

 

 

(45

)

 

 

 

Proceeds from asset and investment sales

 

32

 

 

 

22

 

 

 

41

 

 

 

85

 

Return of investment from equity method investees

 

26

 

 

 

 

 

 

39

 

 

 

18

 

Acquisitions, net

 

(15

)

 

 

(328

)

 

 

(15

)

 

 

(328

)

Purchases of investments

 

(4

)

 

 

(12

)

 

 

(8

)

 

 

(16

)

Other

 

4

 

 

 

1

 

 

 

1

 

 

 

 

Net cash provided by (used in) investing activities

 

(515

)

 

 

(777

)

 

 

(1,034

)

 

 

(1,127

)

 

 

 

 

 

 

 

 

Financing activities:

 

 

 

 

 

Dividends paid to common stockholders

 

(437

)

 

 

(440

)

 

 

(873

)

 

 

(881

)

Acquisition of noncontrolling interests

 

(48

)

 

 

 

 

 

(348

)

 

 

 

Distributions to noncontrolling interests

 

(44

)

 

 

(43

)

 

 

(103

)

 

 

(97

)

Repayment of debt

 

 

 

 

(550

)

 

 

(89

)

 

 

(550

)

Funding from noncontrolling interests

 

24

 

 

 

18

 

 

 

56

 

 

 

48

 

Payments for withholding of employee taxes related to stock-based compensation

 

 

 

 

(1

)

 

 

(36

)

 

 

(29

)

Payments on lease and other financing obligations

 

(15

)

 

 

(18

)

 

 

(34

)

 

 

(36

)

Repurchases of common stock

 

 

 

 

(134

)

 

 

 

 

 

(134

)

Other

 

(2

)

 

 

13

 

 

 

10

 

 

 

13

 

Net cash provided by (used in) financing activities

 

(522

)

 

 

(1,155

)

 

 

(1,417

)

 

 

(1,666

)

Effect of exchange rate changes on cash, cash equivalents and restricted cash

 

(12

)

 

 

2

 

 

 

(9

)

 

 

 

Net change in cash, cash equivalents and restricted cash

 

(6

)

 

 

(935

)

 

 

(723

)

 

 

(957

)

Cash, cash equivalents and restricted cash at beginning of period

 

4,376

 

 

 

5,626

 

 

 

5,093

 

 

 

5,648

 

Cash, cash equivalents and restricted cash at end of period

$

4,370

 

 

$

4,691

 

 

$

4,370

 

 

$

4,691

 

NEWMONT CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited, in millions)

 

 

Three Months Ended

June 30,

 

Six Months Ended

June 30,

 

2022

 

2021

 

2022

 

2021

Reconciliation of cash, cash equivalents and restricted cash:

 

 

 

 

 

Cash and cash equivalents

$

4,307

 

$

4,583

 

$

4,307

 

$

4,583

Restricted cash included in Other current assets

 

 

 

1

 

 

 

 

1

Restricted cash included in Other non-current assets

 

63

 

 

107

 

 

63

 

 

107

Total cash, cash equivalents and restricted cash

$

4,370

 

$

4,691

 

$

4,370

 

$

4,691

NEWMONT CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(unaudited, in millions)

 

 

At June 30,

2022

 

At December 31,

2021

ASSETS

 

 

 

Cash and cash equivalents

$

4,307

 

 

$

4,992

 

Trade receivables

 

364

 

 

 

337

 

Investments

 

51

 

 

 

82

 

Inventories

 

922

 

 

 

930

 

Stockpiles and ore on leach pads

 

752

 

 

 

857

 

Other current assets

 

511

 

 

 

498

 

Current assets

 

6,907

 

 

 

7,696

 

Property, plant and mine development, net

 

24,131

 

 

 

24,124

 

Investments

 

3,203

 

 

 

3,243

 

Stockpiles and ore on leach pads

 

1,788

 

 

 

1,775

 

Deferred income tax assets

 

209

 

 

 

269

 

Goodwill

 

2,771

 

 

 

2,771

 

Other non-current assets

 

681

 

 

 

686

 

Total assets

$

39,690

 

 

$

40,564

 

 

 

 

 

LIABILITIES

 

 

 

Accounts payable

$

583

 

 

$

518

 

Employee-related benefits

 

471

 

 

 

386

 

Income and mining taxes payable

 

178

 

 

 

384

 

Lease and other financing obligations

 

98

 

 

 

106

 

Debt

 

 

 

 

87

 

Other current liabilities

 

1,121

 

 

 

1,173

 

Current liabilities

 

2,451

 

 

 

2,654

 

Debt

 

5,568

 

 

 

5,565

 

Lease and other financing obligations

 

507

 

 

 

544

 

Reclamation and remediation liabilities

 

5,844

 

 

 

5,839

 

Deferred income tax liabilities

 

1,976

 

 

 

2,144

 

Employee-related benefits

 

371

 

 

 

439

 

Silver streaming agreement

 

868

 

 

 

910

 

Other non-current liabilities

 

506

 

 

 

608

 

Total liabilities

 

18,091

 

 

 

18,703

 

 

 

 

 

Contingently redeemable noncontrolling interest

 

 

 

 

48

 

 

 

 

 

EQUITY

 

 

 

Common stock

 

1,278

 

 

 

1,276

 

Treasury stock

 

(236

)

 

 

(200

)

Additional paid-in capital

 

17,334

 

 

 

17,981

 

Accumulated other comprehensive income (loss)

 

(11

)

 

 

(133

)

Retained earnings (accumulated deficit)

 

3,056

 

 

 

3,098

 

Newmont stockholders' equity

 

21,421

 

 

 

22,022

 

Noncontrolling interests

 

178

 

 

 

(209

)

Total equity

 

21,599

 

 

 

21,813

 

Total liabilities and equity

$

39,690

 

 

$

40,564

 

Non-GAAP Financial Measures

Non-GAAP financial measures are intended to provide additional information only and do not have any standard meaning prescribed by GAAP. These measures should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP. Refer to Non-GAAP Financial Measures within Part II, Item 7 within our Form 10-K filed with the SEC on February 24, 2022 for further information on the Non-GAAP financial measures presented below, including why management believes that its presentation of non-GAAP financial measures provides useful information to investors.

Adjusted net income (loss)

Net income (loss) attributable to Newmont stockholders is reconciled to Adjusted net income (loss) as follows:

 

Three Months Ended

June 30, 2022

 

Six Months Ended

June 30, 2022

 

 

 

per share data (1)

 

 

 

per share data (1)

 

 

 

basic

 

diluted

 

 

 

basic

 

diluted

Net income (loss) attributable to Newmont stockholders

$

387

 

 

$

0.49

 

 

$

0.49

 

 

$

835

 

 

$

1.05

 

 

$

1.05

 

Net loss (income) attributable to Newmont stockholders from discontinued operations

 

(8

)

 

 

(0.01

)

 

 

(0.01

)

 

 

(24

)

 

 

(0.03

)

 

 

(0.03

)

Net income (loss) attributable to Newmont stockholders from continuing operations

 

379

 

 

 

0.48

 

 

 

0.48

 

 

 

811

 

 

 

1.02

 

 

 

1.02

 

Pension settlement (2)

 

 

 

 

 

 

 

 

 

 

130

 

 

 

0.16

 

 

 

0.16

 

Change in fair value of investments (3)

 

135

 

 

 

0.17

 

 

 

0.17

 

 

 

96

 

 

 

0.13

 

 

 

0.13

 

(Gain) loss on asset and investment sales (4)

 

 

 

 

 

 

 

 

 

 

35

 

 

 

0.04

 

 

 

0.04

 

Settlement costs (5)

 

5

 

 

 

 

 

 

 

 

 

18

 

 

 

0.03

 

 

 

0.03

 

Reclamation and remediation charges (6)

 

 

 

 

 

 

 

 

 

 

13

 

 

 

0.02

 

 

 

0.02

 

Impairment of long-lived and other assets (7)

 

2

 

 

 

 

 

 

 

 

 

2

 

 

 

 

 

 

 

COVID-19 specific costs (8)

 

1

 

 

 

 

 

 

 

 

 

1

 

 

 

 

 

 

 

Restructuring and severance (9)

 

 

 

 

 

 

 

 

 

 

1

 

 

 

 

 

 

 

Other (10)

 

(18

)

 

 

(0.03

)

 

 

(0.03

)

 

 

(18

)

 

 

(0.03

)

 

 

(0.03

)

Tax effect of adjustments (11)

 

(25

)

 

 

(0.03

)

 

 

(0.03

)

 

 

(62

)

 

 

(0.08

)

 

 

(0.08

)

Valuation allowance and other tax adjustments (12)

 

(117

)

 

 

(0.13

)

 

 

(0.13

)

 

 

(119

)

 

 

(0.14

)

 

 

(0.15

)

Adjusted net income (loss)

$

362

 

 

$

0.46

 

 

$

0.46

 

 

$

908

 

 

$

1.15

 

 

$

1.14

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares (millions): (13)

 

 

 

794

 

 

 

795

 

 

 

 

 

793

 

 

 

795

 

1

 

Per share measures may not recalculate due to rounding.

2

 

Pension settlement, included in Other income (loss), net, represents pension settlement charges in 2022 related to the annuitization of certain defined benefit plans. For further information, refer to Note 7 of the Condensed Consolidated Financial Statements.

3

 

Change in fair value of investments, included in Other income (loss), net, primarily represents unrealized gains and losses related to the Company's investment in current and non-current marketable and other equity securities. For further information regarding our investments, refer to Note 10 of the Condensed Consolidated Financial Statements.

4

 

(Gain) loss on asset and investment sales, included in Other income (loss), net, primarily represents the loss recognized on the sale of the La Zanja equity method investment. For further information, refer to Note 7 of the Condensed Consolidated Financial Statements.

5

 

Settlement costs, included in Other expense, net, primarily are comprised of legal settlement and a voluntary contribution made to support humanitarian efforts in Ukraine.

6

 

Reclamation and remediation charges, included in Reclamation and remediation, represent revisions to reclamation and remediation plans at the Company's former operating properties and historic mining operations that have entered the closure phase and have no substantive future economic value. Refer to Note 5 of the Condensed Consolidated Financial Statement for further information.

7

 

Impairment of long-lived and other assets, included in Other expense, net, represents non-cash write-downs of various assets that are no longer in use and materials and supplied inventories.

8

 

COVID-19 specific costs, included in Other expense, net, primarily include amounts distributed from Newmont Global Community Support Fund to help host communities, governments and employees combat the COVID-19 pandemic.

9

 

Restructuring and severance, included in Other expense, net, primarily represents severance and related costs associated with significant organizational or operating model changes implemented by the Company.

10

 

Primarily comprised of a reimbursement of certain historical Goldcorp operational expenses related to a legacy project that reached commercial production in the second quarter of 2022, included in Other income (loss), net.

11

 

The tax effect of adjustments, included in Income and mining tax benefit (expense), represents the tax effect of adjustments in footnotes (2) through (10), as described above, and are calculated using the applicable regional tax rate.

12

 

Valuation allowance and other tax adjustments, included in Income and mining tax benefit (expense), is recorded for items such as foreign tax credits, capital losses, disallowed foreign losses, and the effects of changes in foreign currency exchange rates on deferred tax assets and deferred tax liabilities. The adjustment for the three and six months ended June 30, 2022 reflects the net increase or (decrease) to net operating losses, capital losses, tax credit carryovers, and other deferred tax assets subject to valuation allowance of $37 and $49, the effects of changes in foreign exchange rates on deferred tax assets and liabilities of $(23) and $(26), net reductions to the reserve for uncertain tax positions of $(5) and $(17), other tax adjustments of $(1) and $—, and a tax settlement in Mexico of $(125) and $(125). For further information on reductions to the reserve for uncertain tax positions, refer to Note 8 of the Condensed Consolidated Financial Statements.

13

 

Adjusted net income (loss) per diluted share is calculated using diluted common shares in accordance with GAAP.

Three Months Ended

June 30, 2021

 

Six Months Ended

June 30, 2021

 

 

 

per share data (1)

 

 

 

per share data (1)

 

 

 

basic

 

diluted

 

 

 

basic

 

diluted

Net income (loss) attributable to Newmont stockholders

$

650

 

 

$

0.81

 

 

$

0.81

 

 

$

1,209

 

 

$

1.51

 

 

$

1.51

 

Net loss (income) attributable to Newmont stockholders from discontinued operations

 

(10

)

 

 

(0.01

)

 

 

(0.01

)

 

 

(31

)

 

 

(0.04

)

 

 

(0.04

)

Net income (loss) attributable to Newmont stockholders from continuing operations

 

640

 

 

 

0.80

 

 

 

0.80

 

 

 

1,178

 

 

 

1.47

 

 

 

1.47

 

Change in fair value of investments (2)

 

(26

)

 

 

(0.03

)

 

 

(0.03

)

 

 

84

 

 

 

0.10

 

 

 

0.10

 

Gain (loss) on asset and investment sales (3)

 

 

 

 

 

 

 

 

 

 

(43

)

 

 

(0.05

)

 

 

(0.05

)

Reclamation and remediation charges (4)

 

20

 

 

 

0.02

 

 

 

0.02

 

 

 

30

 

 

 

0.04

 

 

 

0.04

 

Impairment of long-lived and other assets (5)

 

11

 

 

 

0.01

 

 

 

0.01

 

 

 

12

 

 

 

0.01

 

 

 

0.01

 

Settlement costs (6)

 

8

 

 

 

0.01

 

 

 

0.01

 

 

 

11

 

 

 

0.01

 

 

 

0.01

 

Restructuring and severance, net (7)

 

5

 

 

 

 

 

 

 

 

 

9

 

 

 

0.01

 

 

 

0.01

 

COVID-19 specific costs (8)

 

1

 

 

 

 

 

 

 

 

 

2

 

 

 

 

 

 

 

Tax effect of adjustments (9)

 

(11

)

 

 

 

 

 

 

 

 

(30

)

 

 

(0.03

)

 

 

(0.03

)

Valuation allowance and other tax adjustments, net (10)

 

22

 

 

 

0.03

 

 

 

0.02

 

 

 

11

 

 

 

0.02

 

 

 

0.02

 

Adjusted net income (loss)

$

670

 

 

$

0.84

 

 

$

0.83

 

 

$

1,264

 

 

$

1.58

 

 

$

1.58

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares (millions): (11)

 

 

 

801

 

 

 

803

 

 

 

 

 

801

 

 

 

802

 

1

 

Per share measures may not recalculate due to rounding.

2

 

Change in fair value of investments, included in Other income (loss), net, primarily represents unrealized gains and losses on marketable and other equity securities and our investment instruments. For further information regarding our investments, refer to Note 10 of the Condensed Consolidated Financial Statements.

3

 

(Gain) loss on asset and investment sales, included in Other income (loss), net, primarily represents a gain on the sale of TMAC. For further information, refer to Note 7 of the Condensed Consolidated Financial Statements.

4

 

Reclamation and remediation charges, included in Reclamation and remediation, represent revisions to reclamation and remediation plans at the Company's former operating properties and historic mining operations that have entered the closure phase and have no substantive future economic value. Refer to Note 5 of the Condensed Consolidated Financial Statements for further information.

5

 

Impairment of long-lived and other assets, included in Other expense, net, represents non-cash write-downs of various assets that are no longer in use and materials and supplies inventories.

6

 

Settlement costs, included in Other expense, net, primarily represents certain costs associated with legal and other settlements.

7

 

Restructuring and severance, net, included in Other expense, net, primarily represents severance and related costs associated with significant organizational or operating model changes implemented by the Company. Total amount is presented net of income (loss) attributable to noncontrolling interests of $— and $(1), respectively.

8

 

COVID-19 specific costs, included in Other expense, net, primarily includes amounts distributed from the Newmont Global Community Support Fund to help host communities, governments and employees combat the COVID-19 pandemic. Adjusted net income (loss) has not been adjusted for $19 and $40, respectively, of incremental COVID-19 costs incurred as a result of actions taken to protect against the impacts of the COVID-19 pandemic at our operational sites. Refer to Note 6 of the Condensed Consolidated Financial Statements for further information.

9

 

The tax effect of adjustments, included in Income and mining tax benefit (expense), represents the tax effect of adjustments in footnotes (2) through (8), as described above, and are calculated using the applicable regional tax rate.

10

 

Valuation allowance and other tax adjustments, net, included in Income and mining tax benefit (expense), is recorded for items such as foreign tax credits, alternative minimum tax credits, capital losses, disallowed foreign losses, and the effects of changes in foreign currency exchange rates on deferred tax assets and deferred tax liabilities. The adjustment for the three and six months ended June 30, 2021 is due to increases or (decreases) to net operating losses, tax credit carryovers and other deferred tax assets subject to valuation allowance of $9 and $30 respectively, the effects of changes in foreign exchange rates on deferred tax assets and liabilities of $11 and $(17) respectively, changes to the reserve for uncertain tax positions of $22 and $22 respectively, and other tax adjustments of $(17) and $(19), respectively. Total amount is presented net of income (loss) attributable to noncontrolling interests of $(3) and $(5), respectively.

11

 

Adjusted net income (loss) per diluted share is calculated using diluted common shares, which are calculated in accordance with GAAP.

Earnings before interest, taxes, depreciation and amortization and Adjusted earnings before interest, taxes, depreciation and amortization

Net income (loss) attributable to Newmont stockholders is reconciled to EBITDA and Adjusted EBITDA as follows:

Three Months Ended

June 30,

 

Six Months Ended

June 30,

2022

 

2021

 

2022

 

2021

Net income (loss) attributable to Newmont stockholders

$

387

 

 

$

650

 

 

$

835

 

 

$

1,209

 

Net income (loss) attributable to noncontrolling interests

 

13

 

 

 

11

 

 

 

34

 

 

 

31

 

Net loss (Income) from discontinued operations

 

(8

)

 

 

(10

)

 

 

(24

)

 

 

(31

)

Equity loss (income) of affiliates

 

(17

)

 

 

(49

)

 

 

(56

)

 

 

(99

)

Income and mining tax expense (benefit)

 

33

 

 

 

341

 

 

 

247

 

 

 

576

 

Depreciation and amortization

 

559

 

 

 

561

 

 

 

1,106

 

 

 

1,114

 

Interest expense, net of capitalized interest

 

57

 

 

 

68

 

 

 

119

 

 

 

142

 

EBITDA

$

1,024

 

 

$

1,572

 

 

$

2,261

 

 

$

2,942

 

Adjustments:

 

 

 

 

 

 

 

Pension settlement (1)

 

 

 

 

 

 

 

130

 

 

 

 

Change in fair value of investments (2)

 

135

 

 

 

(26

)

 

 

96

 

 

 

84

 

(Gain) loss on asset and investment sales (3)

 

 

 

 

 

 

 

35

 

 

 

(43

)

Settlement costs (4)

 

5

 

 

 

8

 

 

 

18

 

 

 

11

 

Reclamation and remediation charges (5)

 

 

 

 

20

 

 

 

13

 

 

 

30

 

Impairment of long-lived and other assets (6)

 

2

 

 

 

11

 

 

 

2

 

 

 

12

 

COVID-19 specific costs (7)

 

1

 

 

 

1

 

 

 

1

 

 

 

2

 

Restructuring and severance (8)

 

 

 

 

5

 

 

 

1

 

 

 

10

 

Other (9)

 

(18

)

 

 

 

 

 

(18

)

 

 

 

Adjusted EBITDA

$

1,149

 

 

$

1,591

 

 

$

2,539

 

 

$

3,048

 

1

 

Pension settlement, included in Other income (loss), net, represents pension settlement charges in 2022 related to the annuitization of certain defined benefit plans. For further information, refer to Note 7 of the Condensed Consolidated Financial Statements.

2

 

Change in fair value of investments, included in Other income (loss), net, primarily represents unrealized gains and losses related to the Company's investments in current and non-current marketable and other equity securities. For further information regarding our investments, refer to Note 10 of the Condensed Consolidated Financial Statements.

3

 

(Gain) loss on asset and investment sales, included in Other income (loss), net, primarily represents the loss recognized on the sale of the La Zanja equity method investment in 2022 and a gain on the sale of TMAC in 2021. For further information, refer to Note 7 of the Condensed Consolidated Financial Statements.

4

 

Settlement costs, included in Other expense, net, are primarily comprised of a legal settlement and a voluntary contribution made to support humanitarian efforts in Ukraine in 2022.

5

 

Reclamation and remediation charges, included in Reclamation and remediation, represent revisions to reclamation and remediation plans at the Company's former operating properties and historic mining operations that have entered the closure phase and have no substantive future economic value. Refer to Note 5 of the Condensed Consolidated Financial Statement for further information.

6

 

Impairment of long-lived and other assets, included in Other expense, net, represents non-cash write-downs of various assets that are no longer in use and materials and supplied inventories.

7

 

COVID-19 specific costs, included in Other expense, net, primarily include amounts distributed from Newmont Global Community Support Fund to help host communities, governments and employees combat the COVID-19 pandemic.

8

 

Restructuring and severance, included in Other expense, net, primarily represents severance and related costs associated with significant organizational or operating model changes implemented by the Company for all periods presented.

9

 

Primarily comprised of a reimbursement of certain historical Goldcorp operational expenses related to a legacy project that reached commercial production in the second quarter of 2022, included in Other income (loss), net.

Income (loss) before income and mining tax and other items is reconciled to NGM EBITDA as follows:

 

Three Months Ended

June 30,

 

Six Months Ended

June 30,

 

2022

 

2021

 

2022

 

2021

Income (Loss) before Income and Mining Tax and other Items, NGM (1)

$

91

 

$

170

 

$

244

 

$

337

Depreciation and amortization (1)

 

127

 

 

128

 

 

252

 

 

255

NGM EBITDA

$

218

 

$

298

 

$

496

 

$

592

1

 

Refer to Note 3 of the Condensed Consolidated Financial Statements.

Free Cash Flow

The following table sets forth a reconciliation of Free Cash Flow to Net cash provided by (used in) operating activities, which the Company believes to be the GAAP financial measure most directly comparable to Free Cash Flow, as well as information regarding Net cash provided by (used in) investing activities and Net cash provided by (used in) financing activities.

 

Three Months Ended

June 30,

 

Six Months Ended

June 30,

 

2022

 

2021

 

2022

 

2021

Net cash provided by (used in) operating activities

$

1,043

 

 

$

995

 

 

$

1,737

 

 

$

1,836

 

Less: Net cash used in (provided by) operating activities of discontinued operations

$

(10

)

 

 

(2

)

 

 

(15

)

 

 

(2

)

Net cash provided by (used in) operating activities of continuing operations

$

1,033

 

 

 

993

 

 

 

1,722

 

 

 

1,834

 

Less: Additions to property, plant and mine development

$

(519

)

 

 

(415

)

 

 

(956

)

 

 

(814

)

Free Cash Flow

$

514

 

 

$

578

 

 

$

766

 

 

$

1,020

 

 

 

 

 

 

 

 

 

Net cash provided by (used in) investing activities (1)

$

(515

)

 

$

(777

)

 

$

(1,034

)

 

$

(1,127

)

Net cash provided by (used in) financing activities

$

(522

)

 

$

(1,155

)

 

$

(1,417

)

 

$

(1,666

)

1

 

Net cash provided by (used in) investing activities includes Additions to property, plant and mine development, which is included in the Company’s computation of Free Cash Flow.​

Attributable Free Cash Flow

Management uses Attributable Free Cash Flow as a non-GAAP measure to analyze cash flows generated from operations that are attributable to the Company. Attributable Free Cash Flow is Net cash provided by (used in) operating activities after deducting net cash flows from operations attributable to noncontrolling interests less Net cash provided by (used in) operating activities of discontinued operations after deducting net cash flows from discontinued operations attributable to noncontrolling interests less Additions to property, plant and mine development after deducting property, plant and mine development attributable to noncontrolling interests. The Company believes that Attributable Free Cash Flow is useful as one of the bases for comparing the Company’s performance with its competitors. Although Attributable Free Cash Flow and similar measures are frequently used as measures of cash flows generated from operations by other companies, the Company’s calculation of Attributable Free Cash Flow is not necessarily comparable to such other similarly titled captions of other companies.

The presentation of non-GAAP Attributable Free Cash Flow is not meant to be considered in isolation or as an alternative to Net income attributable to Newmont stockholders as an indicator of the Company’s performance, or as an alternative to Net cash provided by (used in) operating activities as a measure of liquidity as those terms are defined by GAAP, and does not necessarily indicate whether cash flows will be sufficient to fund cash needs. The Company’s definition of Attributable Free Cash Flow is limited in that it does not represent residual cash flows available for discretionary expenditures due to the fact that the measure does not deduct the payments required for debt service and other contractual obligations or payments made for business acquisitions. Therefore, the Company believes it is important to view Attributable Free Cash Flow as a measure that provides supplemental information to the Company’s Condensed Consolidated Statements of Cash Flows.

The following tables set forth a reconciliation of Attributable Free Cash Flow, a non-GAAP financial measure, to Net cash provided by (used in) operating activities, which the Company believes to be the GAAP financial measure most directly comparable to Attributable Free Cash Flow, as well as information regarding Net cash provided by (used in) investing activities and Net cash provided by (used in) financing activities.

 

Three Months Ended June 30, 2022

 

Six Months Ended June 30, 2022

 

Consolidated

 

Attributable to

noncontrolling

interests (1)

 

Attributable to

Newmont

Stockholders

 

Consolidated

 

Attributable to

noncontrolling

interests (1)

 

Attributable to

Newmont

Stockholders

Net cash provided by (used in) operating activities

$

1,043

 

 

$

(20

)

 

$

1,023

 

 

$

1,737

 

 

$

(53

)

 

$

1,684

 

Less: Net cash used in (provided by) operating activities of discontinued operations

 

(10

)

 

 

 

 

 

(10

)

 

 

(15

)

 

 

 

 

 

(15

)

Net cash provided by (used in) operating activities of continuing operations

 

1,033

 

 

 

(20

)

 

 

1,013

 

 

 

1,722

 

 

 

(53

)

 

 

1,669

 

Less: Additions to property, plant and mine development (2)

 

(519

)

 

 

3

 

 

 

(516

)

 

 

(956

)

 

 

21

 

 

 

(935

)

Free Cash Flow

$

514

 

 

$

(17

)

 

$

497

 

 

$

766

 

 

$

(32

)

 

$

734

 

 

 

 

 

 

 

 

 

 

 

 

 

Net cash provided by (used in) investing activities (3)

$

(515

)

 

 

 

 

 

$

(1,034

)

 

 

 

 

Net cash provided by (used in) financing activities

$

(522

)

 

 

 

 

 

$

(1,417

)

 

 

 

 

1

 

Adjustment to eliminate a portion of Net cash provided by (used in) operating activities, Net cash provided by (used in) operating activities of discontinued operations and Additions to property, plant and mine development attributable to noncontrolling interests.

2

 

For the three months ended June 30, 2022, Yanacocha and Merian had total consolidated Additions to property, plant and mine development of $82 and $13, respectively, on a cash basis. For the six months ended June 30, 2022, Yanacocha and Merian had total consolidated Additions to property, plant and mine development of $150 and $24, respectively, on a cash basis.

3

 

Net cash provided by (used in) investing activities includes Additions to property, plant and mine development, which is included in the Company’s computation of Free Cash Flow.​

 

Three Months Ended June 30, 2021

 

Six Months Ended June 30, 2021

 

Consolidated

 

Attributable to

noncontrolling

interests (1)

 

Attributable to

Newmont

Stockholders

 

Consolidated

 

Attributable to

noncontrolling

interests (1)

 

Attributable to

Newmont

Stockholders

Net cash provided by (used in) operating activities

$

995

 

 

$

(33

)

 

$

962

 

 

$

1,836

 

 

$

(53

)

 

$

1,783

 

Less: Net cash used in (provided by) operating activities of discontinued operations

 

(2

)

 

 

 

 

 

(2

)

 

 

(2

)

 

 

 

 

 

(2

)

Net cash provided by (used in) operating activities of continuing operations

 

993

 

 

 

(33

)

 

 

960

 

 

 

1,834

 

 

 

(53

)

 

 

1,781

 

Less: Additions to property, plant and mine development (2)

 

(415

)

 

 

15

 

 

 

(400

)

 

 

(814

)

 

 

31

 

 

 

(783

)

Free Cash Flow

$

578

 

 

$

(18

)

 

$

560

 

 

$

1,020

 

 

$

(22

)

 

$

998

 

 

 

 

 

 

 

 

 

 

 

 

 

Net cash provided by (used in) investing activities (3)

$

(777

)

 

 

 

 

 

$

(1,127

)

 

 

 

 

Net cash provided by (used in) financing activities

$

(1,155

)

 

 

 

 

 

$

(1,666

)

 

 

 

 

1

 

Adjustment to eliminate a portion of Net cash provided by (used in) operating activities, Net cash provided by (used in) operating activities of discontinued operations and Additions to property, plant and mine development attributable to noncontrolling interests, which relate to Yanacocha (48.65%) and Merian (25%).

2

 

For the three months ended June 30, 2021, Yanacocha and Merian had total consolidated Additions to property, plant and mine development of $26 and $11, respectively, on a cash basis. For the six months ended June 30, 2021, Yanacocha and Merian had total consolidated Additions to property, plant and mine development f $54 and $22, respectively, on a cash basis.

3

 

Net cash provided by (used in) investing activities includes Additions to property, plant and mine development, which is included in the Company’s computation of Free Cash Flow.​

Costs applicable to sales per ounce/gold equivalent ounce

Costs applicable to sales per ounce/gold equivalent ounce are calculated by dividing the costs applicable to sales of gold and other metals by gold ounces or gold equivalent ounces sold, respectively. These measures are calculated for the periods presented on a consolidated basis.

The following tables reconcile these non-GAAP measures to the most directly comparable GAAP measures.

Costs applicable to sales per gold ounce

 

Three Months Ended

June 30,

 

Six Months Ended

June 30,

 

2022

 

2021

 

2022

 

2021

Costs applicable to sales (1)(2)

$

1,381

 

$

1,091

 

$

2,565

 

$

2,156

Gold sold (thousand ounces)

 

1,482

 

 

1,444

 

 

2,811

 

 

2,861

Costs applicable to sales per ounce (3)

$

932

 

$

755

 

$

912

 

$

754

1

 

Includes by-product credits of $26 and $72 during the three months ended June 30, 2022 and 2021, respectively, and $53 and $127 during the six months ended June 30, 2022 and 2021, respectively.

2

 

Excludes Depreciation and amortization and Reclamation and remediation.

3

 

Per ounce measures may not recalculate due to rounding.

Costs applicable to sales per gold equivalent ounce

 

Three Months Ended

June 30,

 

Six Months Ended

June 30,

 

2022

 

2021

 

2022

 

2021

Costs applicable to sales (1)(2)

$

327

 

$

190

 

$

578

 

$

372

Gold equivalent ounces - other metals (thousand ounces) (3)

 

333

 

 

302

 

 

683

 

 

629

Costs applicable to sales per gold equivalent ounce (4)

$

983

 

$

629

 

$

846

 

$

590

1

 

Includes by-product credits of $2 and $2 during the three months ended June 30, 2022 and 2021, respectively, and $4 and $3 during the six months ended June 30, 2022 and 2021, respectively

2

 

Excludes Depreciation and amortization and Reclamation and remediation.

3

 

Gold equivalent ounces is calculated as pounds or ounces produced multiplied by the ratio of the other metals price to the gold price, using Gold ($1,200/oz.), Copper ($3.25/lb.), Silver ($23.00/oz.), Lead ($0.95/lb.) and Zinc ($1.15/lb.) pricing for 2022 and Gold ($1,200/oz.), Copper ($2.75/lb.), Silver ($22.00/oz.), Lead ($0.90/lb.) and Zinc ($1.05/lb.) pricing for 2021.

4

 

Per ounce measures may not recalculate due to rounding.​

Costs applicable to sales per gold ounce for Nevada Gold Mines (NGM)

 

Three Months Ended

June 30,

Six Months Ended

June 30,

 

2022

 

2021

 

2022

 

2021

Cost applicable to sales, NGM (1)(2)

$

302

 

$

215

 

$

559

 

$

442

Gold sold (thousand ounces), NGM

 

291

 

 

285

 

 

578

 

 

590

Costs applicable to sales per ounce, NGM (3)

$

1,035

 

$

753

 

$

967

 

$

749

1

 

See Note 3 to the Condensed Consolidated Financial Statements.

2

 

Excludes Depreciation and amortization and Reclamation and remediation.

3

 

Per ounce measures may not recalculate due to rounding.

All-In Sustaining Costs

All-in sustaining costs represent the sum of certain costs, recognized as GAAP financial measures, that management considers to be associated with production. All-in sustaining costs per ounce amounts are calculated by dividing all-in sustaining costs by gold ounces or gold equivalent ounces sold.

Three Months Ended

June 30, 2022

Costs

Applicable

to

Sales(1)(2)(3)

 

Reclamation

Costs(4)

 

Advanced

Projects,

Research and

Development and

Exploration(5)

 

General and

Administrative

 

Other

Expense,

Net(6)

 

Treatment

and

Refining

Costs

 

Sustaining

Capital

and Lease

Related

Costs(7)(8)

 

All-In

Sustaining

Costs

 

Ounces

(000)

Sold

 

All-In

Sustaining

Costs Per

oz.(9)

Gold

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CC&V

$

49

 

$

4

 

$

2

 

$

 

$

2

 

$

 

$

14

 

$

71

 

46

 

$

1,553

Musselwhite

 

53

 

 

1

 

 

2

 

 

 

 

 

 

 

 

11

 

 

67

 

40

 

 

1,693

Porcupine

 

71

 

 

1

 

 

4

 

 

 

 

 

 

 

 

14

 

 

90

 

68

 

 

1,328

Éléonore

 

71

 

 

2

 

 

1

 

 

 

 

2

 

 

 

 

14

 

 

90

 

47

 

 

1,922

Peñasquito (10)

 

127

 

 

3

 

 

1

 

 

 

 

 

 

6

 

 

18

 

 

155

 

130

 

 

1,187

Other North America

 

 

 

 

 

 

 

2

 

 

 

 

 

 

 

 

2

 

 

 

North America

 

371

 

 

11

 

 

10

 

 

2

 

 

4

 

 

6

 

 

71

 

 

475

 

331

 

 

1,437

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Yanacocha

 

73

 

 

6

 

 

2

 

 

 

 

4

 

 

 

 

6

 

 

91

 

69

 

 

1,321

Merian

 

94

 

 

1

 

 

4

 

 

 

 

1

 

 

 

 

13

 

 

113

 

96

 

 

1,173

Cerro Negro

 

71

 

 

2

 

 

1

 

 

 

 

1

 

 

 

 

11

 

 

86

 

78

 

 

1,106

Other South America

 

 

 

 

 

 

 

2

 

 

 

 

 

 

 

 

2

 

 

 

South America

 

238

 

 

9

 

 

7

 

 

2

 

 

6

 

 

 

 

30

 

 

292

 

243

 

 

1,203

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Boddington

 

181

 

 

4

 

 

1

 

 

 

 

1

 

 

5

 

 

14

 

 

206

 

241

 

 

854

Tanami

 

84

 

 

1

 

 

1

 

 

 

 

2

 

 

 

 

28

 

 

116

 

132

 

 

873

Other Australia

 

 

 

 

 

1

 

 

2

 

 

 

 

 

 

1

 

 

4

 

 

 

Australia

 

265

 

 

5

 

 

3

 

 

2

 

 

3

 

 

5

 

 

43

 

 

326

 

373

 

 

873

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ahafo

 

129

 

 

2

 

 

 

 

 

 

 

 

 

 

22

 

 

153

 

135

 

 

1,130

Akyem

 

76

 

 

8

 

 

 

 

 

 

 

 

 

 

7

 

 

91

 

109

 

 

837

Other Africa

 

 

 

 

 

1

 

 

3

 

 

 

 

 

 

1

 

 

5

 

 

 

Africa

 

205

 

 

10

 

 

1

 

 

3

 

 

 

 

 

 

30

 

 

249

 

244

 

 

1,017

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nevada Gold Mines

 

302

 

 

3

 

 

4

 

 

2

 

 

 

 

 

 

57

 

 

368

 

291

 

 

1,263

Nevada

 

302

 

 

3

 

 

4

 

 

2

 

 

 

 

 

 

57

 

 

368

 

291

 

 

1,263

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate and Other

 

 

 

 

 

16

 

 

50

 

 

 

 

 

 

2

 

 

68

 

 

 

Total Gold

$

1,381

 

$

38

 

$

41

 

$

61

 

$

13

 

$

11

 

$

233

 

$

1,778

 

1,482

 

$

1,199

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gold equivalent ounces - other metals (11)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Peñasquito (10)

$

278

 

$

5

 

$

4

 

$

 

$

1

 

$

32

 

$

35

 

$

355

 

264

 

$

1,347

Other North America

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

North America

 

278

 

 

5

 

 

4

 

 

 

 

1

 

 

32

 

 

35

 

 

355

 

264

 

 

1,349

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Boddington

 

49

 

 

 

 

1

 

 

 

 

 

 

3

 

 

3

 

 

56

 

69

 

 

818

Other Australia

 

 

 

 

 

 

 

1

 

 

 

 

 

 

 

 

1

 

 

 

Australia

 

49

 

 

 

 

1

 

 

1

 

 

 

 

3

 

 

3

 

 

57

 

69

 

 

829

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate and Other

 

 

 

 

 

3

 

 

11

 

 

 

 

 

 

1

 

 

15

 

 

 

Total Gold Equivalent Ounces

$

327

 

$

5

 

$

8

 

$

12

 

$

1

 

$

35

 

$

39

 

$

427

 

333

 

$

1,286

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated

$

1,708

 

$

43

 

$

49

 

$

73

 

$

14

 

$

46

 

$

272

 

$

2,205

 

 

 

 

1

 

Excludes Depreciation and amortization and Reclamation and remediation.

2

 

Includes by-product credits of $28 and excludes co-product revenues of $336.

3

 

Includes stockpile and leach pad inventory adjustments of $2 at CC&V and $27 at NGM.

4

 

Reclamation costs include operating accretion and amortization of asset retirement costs of $16 and $27, respectively, and exclude accretion and reclamation and remediation adjustments at former operating properties that have entered the closure phase and have no substantive future economic value of $29 and $4, respectively.

5

 

Advanced projects, research and development and exploration excludes development expenditures of $1 at CC&V, $1 at Peñasquito, $1 at Other North America, $3 at Yanacocha, $2 at Merian, $3 at Cerro Negro, $11 at Other South America, $6 at Tanami, $4 at Other Australia, $7 at Ahafo, $4 at Akyem, $5 at NGM and $10 at Corporate and Other, totaling $58 related to developing new operations or major projects at existing operations where these projects will materially benefit the operation.

6

 

Other expense, net is adjusted for settlement costs of $5, impairment of long-lived and other assets of $2 and distributions from the Newmont Global Community Support Fund of $1.

7

 

Includes sustaining capital expenditures of $94 for North America, $30 for South America, $43 for Australia, $29 for Africa, $57 for Nevada, and $3 for Corporate and Other, totaling $256 and excludes development capital expenditures, capitalized interest and the change in accrued capital totaling $263. See Liquidity and Capital Resources within Part I, Item 2, Management's Discussion and Analysis in our Form 10-Q filed with the SEC on July 25, 2022 for discussion of major development projects.

8

 

Includes finance lease payments for sustaining projects of $16.

9

 

Per ounce measures may not recalculate due to rounding.

10

 

Costs applicable to sales includes $70 related to the Peñasquito Profit-Sharing Agreement. For further information, refer to Note 3 of the Condensed Consolidated Financial Statements in our Form 10-Q filed with the SEC on July 25, 2022.

11

 

Gold equivalent ounces is calculated as pounds or ounces produced multiplied by the ratio of the other metals price to the gold price, using Gold ($1,200/oz.), Copper ($3.25/lb.), Silver ($23.00/oz.), Lead ($0.95/lb.) and Zinc ($1.15/lb.) pricing for 2022.

Three Months Ended

June 30, 2021

Costs

Applicable

to

Sales(1)(2)(3)

 

Reclamation

Costs(4)

 

Advanced

Projects,

Research and

Development and

Exploration(5)

 

General and

Administrative

 

Other

Expense,

Net(6)(7)

 

Treatment

and

Refining

Costs

 

Sustaining

Capital

and Lease

Related

Costs(8)(9)

 

All-In

Sustaining

Costs

 

Ounces

(000)

Sold

 

All-In

Sustaining

Costs Per

oz.(10)

Gold

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CC&V

$

59

 

$

1

 

$

5

 

 

$

 

$

 

 

$

 

$

7

 

$

72

 

63

 

$

1,142

Musselwhite

 

37

 

 

1

 

 

2

 

 

 

 

 

1

 

 

 

 

 

9

 

 

50

 

35

 

 

1,420

Porcupine

 

61

 

 

1

 

 

5

 

 

 

 

 

 

 

 

 

 

13

 

 

80

 

66

 

 

1,193

Éléonore

 

65

 

 

 

 

1

 

 

 

 

 

1

 

 

 

 

 

19

 

 

86

 

67

 

 

1,287

Peñasquito

 

95

 

 

2

 

 

 

 

 

 

 

1

 

 

 

5

 

 

14

 

 

117

 

181

 

 

656

Other North America

 

 

 

 

 

(1

)

 

 

 

 

1

 

 

 

 

 

 

 

 

 

 

North America

 

317

 

 

5

 

 

12

 

 

 

 

 

4

 

 

 

5

 

 

62

 

 

405

 

412

 

 

985

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Yanacocha

 

32

 

 

24

 

 

 

 

 

 

 

8

 

 

 

 

 

6

 

 

70

 

68

 

 

1,029

Merian

 

83

 

 

1

 

 

3

 

 

 

 

 

2

 

 

 

���

 

 

10

 

 

99

 

108

 

 

909

Cerro Negro

 

69

 

 

2

 

 

 

 

 

 

 

4

 

 

 

 

 

14

 

 

89

 

79

 

 

1,133

Other South America

 

 

 

 

 

 

 

 

2

 

 

1

 

 

 

 

 

 

 

3

 

 

 

South America

 

184

 

 

27

 

 

3

 

 

 

2

 

 

15

 

 

 

 

 

30

 

 

261

 

255

 

 

1,022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Boddington

 

162

 

 

3

 

 

1

 

 

 

 

 

 

 

 

3

 

 

24

 

 

193

 

189

 

 

1,023

Tanami

 

65

 

 

1

 

 

1

 

 

 

 

 

2

 

 

 

 

 

30

 

 

99

 

109

 

 

919

Other Australia

 

 

 

 

 

 

 

 

2

 

 

1

 

 

 

 

 

2

 

 

5

 

 

 

Australia

 

227

 

 

4

 

 

2

 

 

 

2

 

 

3

 

 

 

3

 

 

56

 

 

297

 

298

 

 

997

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ahafo

 

92

 

 

2

 

 

1

 

 

 

 

 

2

 

 

 

 

 

19

 

 

116

 

104

 

 

1,122

Akyem

 

56

 

 

7

 

 

1

 

 

 

 

 

1

 

 

 

 

 

11

 

 

76

 

90

 

 

828

Other Africa

 

 

 

 

 

1

 

 

 

2

 

 

 

 

 

 

 

 

 

3

 

 

 

Africa

 

148

 

 

9

 

 

3

 

 

 

2

 

 

3

 

 

 

 

 

30

 

 

195

 

194

 

 

1,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nevada Gold Mines

 

215

 

 

3

 

 

4

 

 

 

2

 

 

2

 

 

 

 

 

54

 

 

280

 

285

 

 

985

Nevada

 

215

 

 

3

 

 

4

 

 

 

2

 

 

2

 

 

 

 

 

54

 

 

280

 

285

 

 

985

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate and Other

 

 

 

 

 

14

 

 

 

38

 

 

(2

)

 

 

 

 

5

 

 

55

 

 

 

Total Gold

$

1,091

 

$

48

 

$

38

 

 

$

46

 

$

25

 

 

$

8

 

$

237

 

$

1,493

 

1,444

 

$

1,035

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gold equivalent ounces - other metals (11)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Peñasquito

$

152

 

$

3

 

$

1

 

 

$

 

$

2

 

 

$

14

 

$

25

 

$

197

 

260

 

$

755

Other North America

 

 

 

 

 

 

 

 

1

 

 

 

 

 

 

 

 

 

1

 

 

 

North America

 

152

 

 

3

 

 

1

 

 

 

1

 

 

2

 

 

 

14

 

 

25

 

 

198

 

260

 

 

761

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Boddington

 

38

 

 

 

 

1

 

 

 

 

 

 

 

 

2

 

 

5

 

 

46

 

42

 

 

1,088

Other Australia

 

 

 

 

 

 

 

 

1

 

 

 

 

 

 

 

 

 

1

 

 

 

Australia

 

38

 

 

 

 

1

 

 

 

1

 

 

 

 

 

2

 

 

5

 

 

47

 

42

 

 

1,113

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate and Other

 

 

 

 

 

6

 

 

 

16

 

 

 

 

 

 

 

1

 

 

23

 

 

 

Total Gold Equivalent Ounces

$

190

 

$

3

 

$

8

 

 

$

18

 

$

2

 

 

$

16

 

$

31

 

$

268

 

302

 

$

886

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated

$

1,281

 

$

51

 

$

46

 

 

$

64

 

$

27

 

 

$

24

 

$

268

 

$

1,761

 

 

 

 

1

 

Excludes Depreciation and amortization and Reclamation and remediation.

2

 

Includes by-product credits of $74 and excludes co-product revenues of $435.

3

 

Includes stockpile and leach pad inventory adjustments of $5 at CC&V.

4

 

Reclamation costs include operating accretion and amortization of asset retirement costs of $20 and $31, respectively, and exclude accretion and reclamation and remediation adjustments at former operating properties that have entered the closure phase and have no substantive future economic value of $13 and $24, respectively.

5

 

Advanced projects, research and development and exploration excludes development expenditures of $1 at CC&V, $2 at Porcupine, $1 at Éléonore, $2 at Other North America, $3 at Yanacocha, $1 at Cerro Negro, $9 at Other South America, $7 at Tanami, $4 at Other Australia, $4 at Ahafo, $1 at Akyem, $4 at NGM and $4 at Corporate and Other, totaling $43 related to developing new operations or major projects at existing operations where these projects will materially benefit the operation.

6

 

Care and maintenance, included in Other expense, net, includes $2 at Tanami of cash care and maintenance costs associated with the site temporarily being placed into care and maintenance or operating at reduced levels in response to the COVID-19 pandemic, during the period ended June 30, 2021 that we would have continued to incur if the site were not temporarily placed into care and maintenance.

7

 

Other expense, net is adjusted for impairment of long-lived and other assets of $11, settlement costs of $8, restructuring and severance of $5 and distributions from the Newmont Global Community Support Fund of $1.

8

 

Includes sustaining capital expenditures of $74 for North America, $30 for South America, $58 for Australia, $29 for Africa, $54 for Nevada, and $6 for Corporate and Other, totaling $251 and excludes development capital expenditures, capitalized interest and the change in accrued capital totaling $164. See Liquidity and Capital Resources within Part I, Item 2, Management's Discussion and Analysis in our Form 10-Q filed with the SEC on July 25, 2022 for discussion of major development projects.

9

 

Includes finance lease payments for sustaining projects of $17.

10

 

Per ounce measures may not recalculate due to rounding.

11

 

Gold equivalent ounces is calculated as pounds or ounces produced multiplied by the ratio of the other metals price to the gold price, using Gold ($1,200/oz.), Copper ($2.75/lb.), Silver ($22.00/oz.), Lead ($0.90/lb.) and Zinc ($1.05/lb.) pricing for 2021.

Six Months Ended

June 30, 2022

Costs

Applicable

to

Sales(1)(2)(3)

 

Reclamation

Costs(4)

 

Advanced

Projects,

Research and

Development

and

Exploration(5)

 

General and

Administrative

 

Other

Expense,

Net(6)

 

Treatment

and

Refining

Costs

 

Sustaining

Capital and

Lease

Related

Costs(7)(8)

 

All-In

Sustaining

Costs

 

Ounces

(000)

Sold

 

All-In

Sustaining

Costs Per

oz.(9)

Gold

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CC&V

$

101

 

$

7

 

$

3

 

$

 

$

3

 

 

$

 

$

18

 

$

132

 

82

 

$

1,608

Musselwhite

 

96

 

 

3

 

 

3

 

 

 

 

1

 

 

 

 

 

17

 

 

120

 

72

 

 

1,670

Porcupine

 

137

 

 

2

 

 

6

 

 

 

 

 

 

 

 

 

23

 

 

168

 

128

 

 

1,313

Éléonore

 

133

 

 

4

 

 

1

 

 

 

 

3

 

 

 

 

 

26

 

 

167

 

97

 

 

1,734

Peñasquito (10)

 

214

 

 

5

 

 

2

 

 

 

 

1

 

 

 

13

 

 

32

 

 

267

 

264

 

 

1,013

Other North America

 

 

 

 

 

 

 

3

 

 

1

 

 

 

 

 

 

 

4

 

 

 

North America

 

681

 

 

21

 

 

15

 

 

3

 

 

9

 

 

 

13

 

 

116

 

 

858

 

643

 

 

1,336

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Yanacocha

 

140

 

 

10

 

 

2

 

 

 

 

7

 

 

 

 

 

11

 

 

170

 

137

 

 

1,243

Merian

 

181

 

 

3

 

 

5

 

 

 

 

2

 

 

 

 

 

24

 

 

215

 

199

 

 

1,079

Cerro Negro

 

134

 

 

3

 

 

1

 

 

 

 

7

 

 

 

 

 

22

 

 

167

 

142

 

 

1,172

Other South America

 

 

 

 

 

 

 

5

 

 

 

 

 

 

 

 

 

5

 

 

 

South America

 

455

 

 

16

 

 

8

 

 

5

 

 

16

 

 

 

 

 

57

 

 

557

 

478

 

 

1,164

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Boddington

 

343

 

 

9

 

 

2

 

 

 

 

1

 

 

 

8

 

 

27

 

 

390

 

439

 

 

888

Tanami

 

149

 

 

1

 

 

4

 

 

 

 

5

 

 

 

 

 

57

 

 

216

 

231

 

 

933

Other Australia

 

 

 

 

 

1

 

 

4

 

 

 

 

 

 

 

4

 

 

9

 

 

 

Australia

 

492

 

 

10

 

 

7

 

 

4

 

 

6

 

 

 

8

 

 

88

 

 

615

 

670

 

 

917

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ahafo

 

235

 

 

4

 

 

1

 

 

 

 

1

 

 

 

 

 

44

 

 

285

 

243

 

 

1,171

Akyem

 

143

 

 

15

 

 

1

 

 

 

 

 

 

 

 

 

17

 

 

176

 

199

 

 

884

Other Africa

 

 

 

 

 

1

 

 

5

 

 

 

 

 

 

 

1

 

 

7

 

 

 

Africa

 

378

 

 

19

 

 

3

 

 

5

 

 

1

 

 

 

 

 

62

 

 

468

 

442

 

 

1,057

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nevada Gold Mines

 

559

 

 

4

 

 

7

 

 

5

 

 

 

 

 

1

 

 

103

 

 

679

 

578

 

 

1,176

Nevada

 

559

 

 

4

 

 

7

 

 

5

 

 

 

 

 

1

 

 

103

 

 

679

 

578

 

 

1,176

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate and Other

 

 

 

 

 

39

 

 

93

 

 

(1

)

 

 

 

 

6

 

 

137

 

 

 

Total Gold

$

2,565

 

$

70

 

$

79

 

$

115

 

$

31

 

 

$

22

 

$

432

 

$

3,314

 

2,811

 

$

1,179

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gold equivalent ounces - other metals (11)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Peñasquito(10)

$

483

 

$

10

 

$

6

 

$

 

$

4

 

 

$

65

 

$

68

 

$

636

 

559

 

$

1,138

Other North America

 

 

 

 

 

 

 

1

 

 

 

 

 

 

 

 

 

1

 

 

 

North America

 

483

 

 

10

 

 

6

 

 

1

 

 

4

 

 

 

65

 

 

68

 

 

637

 

559

 

 

1,140

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Boddington

 

95

 

 

1

 

 

1

 

 

 

 

 

 

 

5

 

 

7

 

 

109

 

124

 

 

881

Other Australia