Newmont Announces Second Quarter 2018 Results DENVER
Newmont Mining Corporation (NYSE: NEM) (Newmont or the Company)
announced second quarter 2018 results.
-
Net income: Delivered GAAP net income from continuing
operations attributable to stockholders of $274 million or $0.51 per
diluted share; delivered adjusted net income1 of $144
million or $0.26 per diluted share, down 43 percent compared to
the prior year quarter
-
EBITDA: Generated $545 million in adjusted EBITDA2,
down 22 percent from the prior year quarter
-
Cash flow: Reported consolidated cash flow from continuing
operations of $401 million and free cash flow3 of $143
million
-
Gold costs applicable to sales (CAS)4: Reported
CAS of $751 per ounce, with no change to the Company’s full year
guidance
-
Gold all-in sustaining costs (AISC)5: Reported
AISC of $1,024 per ounce, with no change to the Company’s full year
guidance
-
Attributable gold production: Produced 1.16 million ounces of
gold, in line with the Company’s full year guidance
-
Portfolio improvements: Agreement to acquire 50 percent
ownership interest in Galore Creek from NovaGold, partnering with
Teck; completed the Twin Underground and Northwest Exodus projects in
Nevada; advanced the Akyem Underground project to prefeasibility study
in Africa; welcomed Sumitomo Corporation as a new five percent partner
at Yanacocha in Peru; and divested royalty portfolio forming a
strategic partnership with Maverix Metals
-
Financial strength: Ended the quarter with $3.1 billion cash on
hand and net debt under $1.0 billion; an industry-leading balance
sheet with investment-grade credit profile; and a quarterly dividend
declared of $0.14 per share, an increase of 87 percent over the prior
year quarter
-
Outlook: Maintained corporate-level production, unit cost and
capital outlook for 2018
“Newmont delivered $545 million in adjusted EBITDA and $143 million in
free cash flow in the second quarter, as strong operational performance
helped offset the impacts of geotechnical challenges and back-half
weighted results,” said Gary J. Goldberg, President and Chief Executive
Officer. “We continued to add lower cost production by completing our
Twin Underground and Northwest Exodus projects safely, on budget and
ahead of schedule. And we invested in future value-creation by forging a
partnership with Teck to advance prefeasibility studies on Galore Creek
in British Colombia, one of the world’s largest undeveloped copper-gold
deposits, and with Sumitomo to develop Yanacocha Sulfides in Peru.”
Second Quarter 2018 Summary Results
Net income from continuing operations attributable to Newmont
stockholders of $274 million or $0.51 per diluted share, an increase of
$84 million from the prior year quarter primarily due to lower income
taxes, a gain from the sale of the Company’s royalty portfolio in June
2018 and higher average realized prices, partially offset by lower
production at CC&V, Boddington, Akyem and Twin Creeks.
Adjusted net income was $144 million or $0.26 per diluted share,
compared to $248 million or $0.46 per diluted share in the prior
year quarter resulting from lower production. Primary adjustments to net
income include $0.18 per share related to the sale of the Company’s
royalty portfolio and $0.08 per share of net tax adjustments primarily
related to valuation allowances.
Revenue decreased 11 percent to $1,662 million for the quarter
primarily due to lower production, partially offset by higher average
realized gold prices.
Average realized price6 for gold was $1,292, an
improvement of $42 per ounce over the prior year quarter; average
realized price for copper was $2.99 per pound, an improvement of $0.53
over the prior year quarter.
Attributable gold production decreased 14 percent to 1.16 million
ounces primarily from lower grades at Carlin, Twin Creeks, Boddington
and Akyem and a build of CC&V concentrate inventory to be processed in
Nevada.
Gold CAS rose 13 percent to $751 per ounce for the quarter due to
lower production, higher stockpile and leach pad inventory adjustments,
the impact of KCGM rock falls, and higher oil prices.
Gold AISC rose 16 percent to $1,024 per ounce for the quarter on
higher CAS, sustaining capital and advanced project and exploration
expense.
Attributable copper production from Phoenix and Boddington
decreased 7 percent to 14,000 tonnes for the quarter. Copper CAS totaled
$46 million for the quarter. Copper CAS was $1.70 per pound for the
quarter due to higher volume driven allocation of costs to copper. Copper
AISC increased 21 percent to $2.05 per pound for the quarter due to
higher unit CAS and higher sustaining capital spend.
Capital expenditures7 increased by 41 percent from the
prior year quarter to $258 million with increased investment in Quecher
Main, Subika Underground, and the Ahafo Mill expansion.
Consolidated operating cash flow from continuing operations decreased
24 percent from the prior year quarter to $401 million primarily due to
lower volumes, changes in working capital primarily due to tax payments,
and a build in inventory partially offset by collection of accounts
receivable and higher realized metal prices. Free cash flow decreased 58
percent from the prior year quarter to $143 million from lower operating
cash flow and higher investment in growth projects.
Balance sheet ended the quarter with $3.1 billion cash on hand, a
leverage ratio of 0.4x net debt to adjusted EBITDA and one of the best
credit ratings in the mining sector. The Company is committed to
maintaining an investment-grade credit profile.
Projects update
Newmont’s capital-efficient project pipeline supports stable production
with improving margins and mine life. Near-term development capital
projects are presented below. Funding for Subika Underground, Ahafo Mill
Expansion, Quecher Main and Tanami Power projects has been approved and
these projects are in execution. Additional projects represent
incremental improvements to production and cost guidance. Internal rates
of return (IRR) on these projects are calculated at a $1,200 gold price.
-
Subika Underground (Africa) leverages
existing infrastructure and an optimized approach to develop Ahafo’s
most promising underground resource. First production was achieved in
June 2017 with commercial production expected in the fourth quarter of
2018. The project is expected to increase average annual gold
production by between 150,000 and 200,000 ounces per year for the
first five years beginning in 2019 with an initial mine life of
approximately 11 years. Capital costs for the project are estimated at
between $160 and $200 million with expenditure of between $85 and $95
million in 2018. The project has an IRR of more than 20 percent.
-
Ahafo Mill Expansion (Africa) is designed
to maximize resource value by improving production margins and
accelerating stockpile processing. The project also supports
profitable development of Ahafo’s highly prospective underground
resources. First production is expected in the second half of 2019
with commercial production also expected in the second half of 2019.
The expansion is expected to increase average annual gold production
by between 75,000 and 100,000 ounces per year for the first five years
beginning in 2020. Capital costs for the project are estimated at
between $140 and $180 million with expenditure of approximately $75 to
$85 million in 2018. The project has an IRR of more than 20 percent.
Together the Ahafo expansion projects (Ahafo Mill Expansion and Subika
Underground) improve Ahafo’s production to between 550,000 and 650,000
ounces per year for the first five full years of production (2020 to
2024). During this period Ahafo’s CAS is expected to be between $650 and
$750 per ounce and AISC is expected to be between $800 and $900 per
ounce. This represents average production improvement of between 200,000
and 300,000 ounces at CAS improvement of between $150 and $250 per ounce
and AISC improvement of $250 to $350 per ounce, compared to 2016 actuals.
-
Quecher Main (South America) will add
oxide production at Yanacocha, leverage existing infrastructure and
enable potential future growth at Yanacocha. First production is
expected in late 2018 with commercial production in the second half of
2019. Quecher Main extends the life of the Yanacocha operation to 2027
with average annual gold production of approximately 200,000 ounces
per year between 2020 and 2025 (100 percent basis). During the same
period incremental CAS is expected to be between $750 and $850 per
ounce and AISC between $900 and $1,000 per ounce. Capital costs for
the project are expected to be between $250 and $300 million with
expenditure of $80 to $90 million in 2018. The project IRR is expected
to be greater than 10 percent.
-
Tanami Power (Australia) will lower
Tanami power costs by approximately 20 percent beginning in 2019,
mitigate fuel supply risk and reduce carbon emissions by 20 percent.
The project includes a 450 kilometer natural gas pipeline to be
constructed connecting the Tanami site to the Amadeus Gas Pipeline,
and construction and operation of two on-site power stations. The gas
supply, gas transmission and power purchase agreements are for a 10
year term with options to extend. The project is expected to result in
net cash savings of approximately $34 per ounce beginning in 2019.
Capital costs are estimated at between $225 and $275 million with
annual cash lease payments over a 10 year term beginning in 2019 with
approximately $10 million of owner’s costs paid in 2018. The project
IRR is expected to be greater than 50 percent at $0.75 AUD.
Outlook
Newmont’s outlook reflects stable gold production and ongoing investment
in its operating assets and most promising growth prospects. Newmont
does not include development projects that have not yet been funded or
reached execution stage in its outlook, which represents upside to
production and cost guidance.
Attributable gold production remains unchanged at between 4.9 and
5.4 million ounces in 2018 and 2019. Longer term production is expected
to remain stable at between 4.6 and 5.1 million ounces per year through
2022 excluding development projects which have yet to be approved.
-
North America production remains unchanged at between 2.0 and 2.2
million ounces in 2018. Production declines slightly in 2019 to
between 1.8 and 2.0 million ounces due to planned stripping at Carlin
and then increases to between 1.9 and 2.1 million ounces in 2020 due
to higher grades at Twin Creeks, Cripple Creek & Victor and Long
Canyon. The Company continues to pursue profitable growth
opportunities at Carlin and Long Canyon.
-
South America production remains unchanged at between 615,000 and
675,000 ounces in 2018. Production is expected to be between 590,000
and 690,000 ounces in 2019 with the addition of Quecher Main and
between 475,000 and 575,000 ounces per year in 2020 as Yanacocha
laybacks are mined out and Merian transitions from saprolite to hard
rock. The Company continues to advance near-mine growth opportunities
at Merian and both oxide and sulfide potential at Yanacocha.
-
Australia production decreases to between 1.4 and 1.6 million ounces
in 2018 driven by the East wall slip at KCGM. Production in 2019 and
2020 may be impacted by the KCGM rock falls and life of mine plans are
being assessed. The Company continues to advance studies for a second
expansion at Tanami.
-
Africa production remains unchanged at between 815,000 and 875,000
ounces in 2018. Production is expected to be between 1.1 and 1.2
million ounces in 2019 as the Ahafo Mill expansion reaches commercial
production and between 880,000 and 980,000 ounces in 2020 as both
Ahafo and Akyem reach lower open pit grade. The company continues to
advance the Ahafo North project and other prospective surface and
underground opportunities.
Gold cost outlook – CAS remains unchanged at between $700
and $750 per ounce in 2018. CAS is expected to be between $620 and $720
per ounce for 2019 and between $650 and $750 per ounce longer term
through 2022. AISC remains unchanged at between $965 and $1,025 per
ounce in 2018. AISC is expected to be between $870 and $970 per ounce in
2019 and longer-term through 2022. Further Full Potential savings and
profitable ounces from projects that are not yet approved represent
additional upside not currently captured in guidance.
-
North America CAS remains unchanged at between $730 and $780 per ounce
in 2018. CAS is expected to be between $680 and $780 per ounce in 2019
and between $655 and $755 per ounce in 2020 on higher production at
Twin Creeks, Cripple Creek & Victor and Long Canyon. AISC has improved
to be between $920 and $955 per ounce in 2018 on improved unit CAS.
AISC is expected to be between $870 and $970 per ounce in 2019 and
between $825 and $925 in 2020.
-
South America CAS remains unchanged at between $675 and $735 per ounce
in 2018. CAS is expected to be between $560 and $660 per ounce in 2019
as Quecher Main reaches commercial production and be between $690 and
$790 per ounce in 2020. AISC improved to be between $925 and $1,025
per ounce in 2018 on lower unit CAS. AISC is expected to be between
$810 and $910 per ounce in 2019 on improved unit CAS and be between
$970 and $1,070 per ounce in 2020.
-
Australia CAS increases to between $695 and $745 per ounce in 2018
driven by the East wall slip at KCGM. CAS and AISC in 2019 and 2020
may be impacted by the KCGM rock falls and life of mine plans are
being assessed.
-
Africa CAS increases to between $715 and $765 per ounce in 2018 due to
higher inventory costs from lower grade mined and higher surface
mining costs. CAS is expected to be between $520 and $620 per ounce in
2019 and between $610 and $710 per ounce in 2020. AISC increases to
between $880 and $940 per ounce in 2018. AISC is expected to be
between $700 and $800 per ounce in 2019 as the Ahafo Mill expansion
reaches commercial production and between $775 and $875 per ounce in
2020.
Copper – Attributable production remains unchanged at
between 40,000 and 60,000 tonnes in 2018 and 2019, increasing to between
45,000 and 65,000 tonnes longer term through 2022 as Phoenix moves into
higher copper zones. CAS remains unchanged at between $1.65 and $1.85
per pound in 2018. CAS is expected to be between $1.80 and $2.20 per
pound in 2019 before falling to between $1.40 and $1.80 per pound longer
term as Phoenix moves into higher copper zones. AISC remains unchanged
at between $2.00 and $2.20 per pound in 2018. AISC is expected to be
between $2.25 and $2.55 per pound in 2019 and between $1.80 and $2.10
per pound longer term.
Capital – Total capital remains unchanged at between $1,200 and
$1,300 million for 2018 and is expected to remain between $730 and $830
million for 2019. Primary development capital includes expenditure on
the Ahafo Mill and Subika Underground expansions in Africa, Twin
Underground in North America and Quecher Main in South America and
Tanami Power Project. Sustaining capital remains unchanged at between
$600 and $700 million in 2018, between $600 and $700 million for 2019
and between $550 and $650 million per year longer term to cover
infrastructure, equipment and ongoing mine development.
Consolidated expense outlook – Interest expense for 2018 remains
unchanged at between $175 and $215 million and investment in exploration
and advanced projects remains unchanged at between $350 and $400
million. 2018 outlook for general & administrative costs increases to
between $225 and $250 million due primarily to additional investments in
the Company’s cyber security and leadership development programs.
Guidance for depreciation and amortization remains unchanged at between
$1,225 and $1,325 million.
Assumptions and sensitivities – Newmont’s outlook assumes $1,200
per ounce gold price, $2.50 per pound copper price, $0.75 USD/AUD
exchange rate and $55 per barrel WTI oil price. A $100 per ounce
increase in gold price would deliver an expected $335 million
improvement in attributable free cash flow. Similarly, a $10 per barrel
reduction in the price of oil and a $0.05 favorable change in the
Australian dollar would deliver an expected $25 million and $45 million
improvement in attributable free cash flow, respectively. These
estimates exclude current hedge programs; please refer to Newmont’s Form
10-Q which was filed with the SEC on July 26, 2018 for further
information on hedging positions.
_______________________
1 Non-GAAP measure. See end of this release for
reconciliation to Net income (loss) attributable to Newmont stockholders. 2
Non-GAAP measure. See end of this release for reconciliation to Net
income (loss) attributable to Newmont stockholders. 3
Non-GAAP measure. See end of this release for reconciliation to Net
cash provided by operating activities. 4 Non-GAAP
measure. See end of this release for reconciliation to Costs applicable
to sales. 5 Non-GAAP measure. See end of this
release for reconciliation to Costs applicable to sales. 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.
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2018 Outlooka
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Consolidated
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All-in
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Consolidated
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Consolidated
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Attributable
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Consolidated
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Sustaining
|
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Total Capital
|
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Production
|
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Production
|
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CAS
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Costsb
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Expenditures
|
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(Koz, Kt)
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(Koz, Kt)
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($/oz, $/lb)
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($/oz, $/lb)
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($M)
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North America
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|
|
|
|
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|
|
|
|
|
|
|
|
Carlin
|
|
|
950
|
–
|
1,015
|
|
|
950
|
–
|
1,015
|
|
|
775
|
–
|
825
|
|
|
980
|
–
|
1,040
|
|
|
155
|
–
|
190
|
Phoenixc
|
|
|
210
|
–
|
230
|
|
|
210
|
–
|
230
|
|
|
810
|
–
|
860
|
|
|
990
|
–
|
1,050
|
|
|
20
|
–
|
30
|
Twin Creeksd
|
|
|
315
|
–
|
345
|
|
|
315
|
–
|
345
|
|
|
700
|
–
|
750
|
|
|
875
|
–
|
925
|
|
|
80
|
–
|
100
|
CC&V
|
|
|
345
|
–
|
395
|
|
|
345
|
–
|
395
|
|
|
670
|
–
|
725
|
|
|
800
|
–
|
860
|
|
|
30
|
–
|
40
|
Long Canyon
|
|
|
130
|
–
|
170
|
|
|
130
|
–
|
170
|
|
|
510
|
–
|
560
|
|
|
605
|
–
|
655
|
|
|
10
|
–
|
20
|
Other North America
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10
|
–
|
20
|
Total
|
|
|
2,010
|
–
|
2,170
|
|
|
2,010
|
–
|
2,170
|
|
|
730
|
–
|
780
|
|
|
920
|
–
|
995
|
|
|
300
|
–
|
380
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
South America
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Yanacochae
|
|
|
470
|
–
|
545
|
|
|
240
|
–
|
280
|
|
|
885
|
–
|
925
|
|
|
1,125
|
–
|
1,175
|
|
|
110
|
–
|
140
|
Meriane
|
|
|
485
|
–
|
540
|
|
|
365
|
–
|
405
|
|
|
455
|
–
|
495
|
|
|
580
|
–
|
630
|
|
|
55
|
–
|
95
|
Other South America
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
970
|
–
|
1,070
|
|
|
615
|
–
|
675
|
|
|
675
|
–
|
735
|
|
|
925
|
–
|
1,025
|
|
|
170
|
–
|
230
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Australia
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Boddington
|
|
|
665
|
–
|
715
|
|
|
665
|
–
|
715
|
|
|
820
|
–
|
870
|
|
|
950
|
–
|
1,000
|
|
|
60
|
–
|
75
|
Tanami
|
|
|
440
|
–
|
515
|
|
|
440
|
–
|
515
|
|
|
535
|
–
|
605
|
|
|
705
|
–
|
775
|
|
|
300i
|
–
|
380i
|
Kalgoorlief
|
|
|
280
|
–
|
330
|
|
|
280
|
–
|
330
|
|
|
715
|
–
|
765
|
|
|
825
|
–
|
875
|
|
|
20
|
–
|
30
|
Other Australia
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5
|
–
|
15
|
Total
|
|
|
1,420
|
–
|
1,560
|
|
|
1,420
|
–
|
1,560
|
|
|
695
|
–
|
745
|
|
|
850
|
–
|
910
|
|
|
400i
|
–
|
480i
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Africa
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ahafo
|
|
|
435
|
–
|
465
|
|
|
435
|
–
|
465
|
|
|
780
|
–
|
835
|
|
|
900
|
–
|
980
|
|
|
195
|
–
|
240
|
Akyem
|
|
|
380
|
–
|
410
|
|
|
380
|
–
|
410
|
|
|
640
|
–
|
680
|
|
|
765
|
–
|
815
|
|
|
30
|
–
|
40
|
Other Africa
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
815
|
–
|
875
|
|
|
815
|
–
|
875
|
|
|
715
|
–
|
765
|
|
|
880
|
–
|
940
|
|
|
225
|
–
|
275
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate/Other
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10
|
–
|
15
|
Total Goldg
|
|
|
5,300
|
–
|
5,800
|
|
|
4,900
|
–
|
5,400
|
|
|
700
|
–
|
750
|
|
|
965
|
–
|
1,025
|
|
|
1,200
|
–
|
1,300
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Phoenix
|
|
|
10
|
–
|
20
|
|
|
10
|
–
|
20
|
|
|
1.50
|
–
|
1.70
|
|
|
1.85
|
–
|
2.05
|
|
|
|
|
|
Boddington
|
|
|
30
|
–
|
40
|
|
|
30
|
–
|
40
|
|
|
1.75
|
–
|
1.95
|
|
|
2.05
|
–
|
2.25
|
|
|
|
|
|
Total Copper
|
|
|
40
|
–
|
60
|
|
|
40
|
–
|
60
|
|
|
1.65
|
–
|
1.85
|
|
|
2.00
|
–
|
2.20
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2018 Consolidated Expense Outlookh
|
|
General & Administrative
|
|
|
$
|
225
|
–
|
$
|
250
|
Interest Expense
|
|
|
$
|
175
|
–
|
$
|
215
|
Depreciation and Amortization
|
|
|
$
|
1,225
|
–
|
$
|
1,325
|
Advanced Projects & Exploration
|
|
|
$
|
350
|
–
|
$
|
400
|
Sustaining Capital
|
|
|
$
|
600
|
–
|
$
|
700
|
Tax Ratej
|
|
|
|
28%
|
–
|
|
34%
|
a
|
|
2018 Outlook in the table above are considered “forward-looking
statements” and are based upon certain assumptions, including, but
not limited to, metal prices, oil prices, certain exchange rates
and other assumptions. For example, 2018 Outlook assumes $1,200/oz
Au, $2.50/lb Cu, $0.75 USD/AUD exchange rate and $55/barrel WTI;
AISC and CAS estimates do not include inflation, for the remainder
of the year. Production, CAS, AISC and capital estimates exclude
projects that have not yet been approved. 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. Such
assumptions may prove to be incorrect and actual results may
differ materially from those anticipated. See cautionary note at
the end of the release.
|
b
|
|
All-in sustaining costs or AISC as used in the Company’s
Outlook is a non-GAAP metric defined as the sum of costs
applicable to sales (including all direct and indirect costs
related to current production incurred to execute on the current
mine plan), reclamation costs (including operating accretion and
amortization of asset retirement costs), G&A, exploration expense,
advanced projects and R&D, treatment and refining costs, other
expense, net of one-time adjustments and sustaining capital. See
reconciliation at the end of this release.
|
c
|
|
Includes Lone Tree operations.
|
d
|
|
Includes TRJV operations shown on a pro-rata basis with a 25%
ownership interest.
|
e
|
|
Consolidated production for Yanacocha and Merian is presented
on a total production basis for the mine site; attributable
production represents a 51.35% interest for Yanacocha and a 75%
interest for Merian.
|
f
|
|
Both consolidated and attributable production are shown on a
pro-rata basis with a 50% ownership for Kalgoorlie.
|
g
|
|
Production outlook does not include equity production from
stakes in TMAC (28.71%) or La Zanja (46.94%).
|
h
|
|
Consolidated expense outlook is adjusted to exclude
extraordinary items. For example, the tax rate outlook above is a
consolidated adjusted rate, which assumes the exclusion of certain
tax valuation allowance adjustments.
|
i
|
|
Includes $225-$275M for a capital lease related to the Tanami
Power Project paid over a 10 year term beginning in 2019.
|
j
|
|
Assuming average prices of $1,300 per ounce for gold and $2.70
per pound for copper and achievement of current production and
sales volumes and cost estimates, we estimate our consolidated
adjusted effective tax rate related to continuing operations for
2018 will be between 28-34%.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30,
|
|
|
Six Months Ended June 30,
|
Operating Results
|
|
|
2018
|
|
|
2017
|
|
|
% Change
|
|
|
2018
|
|
|
2017
|
|
|
% Change
|
|
Attributable Sales (koz, kt)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Attributable gold ounces sold
|
|
|
|
1,147
|
|
|
|
1,350
|
|
|
(15
|
)
|
%
|
|
|
2,378
|
|
|
|
2,579
|
|
|
(8
|
)
|
%
|
Attributable copper tonnes sold
|
|
|
|
13
|
|
|
|
14
|
|
|
(7
|
)
|
%
|
|
|
25
|
|
|
|
26
|
|
|
(4
|
)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Realized Price ($/oz, $/lb)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average realized gold price
|
|
|
$
|
1,292
|
|
|
$
|
1,250
|
|
|
3
|
|
%
|
|
$
|
1,310
|
|
|
$
|
1,235
|
|
|
6
|
|
%
|
Average realized copper price
|
|
|
$
|
2.99
|
|
|
$
|
2.46
|
|
|
22
|
|
%
|
|
$
|
2.93
|
|
|
$
|
2.56
|
|
|
14
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Attributable Production (koz, kt)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North America
|
|
|
|
430
|
|
|
|
578
|
|
|
(26
|
)
|
%
|
|
|
920
|
|
|
|
1,082
|
|
|
(15
|
)
|
%
|
South America
|
|
|
|
141
|
|
|
|
153
|
|
|
(8
|
)
|
%
|
|
|
285
|
|
|
|
303
|
|
|
(6
|
)
|
%
|
Australia
|
|
|
|
391
|
|
|
|
401
|
|
|
(2
|
)
|
%
|
|
|
757
|
|
|
|
761
|
|
|
(1
|
)
|
%
|
Africa
|
|
|
|
200
|
|
|
|
220
|
|
|
(9
|
)
|
%
|
|
|
409
|
|
|
|
440
|
|
|
(7
|
)
|
%
|
Total Gold
|
|
|
|
1,162
|
|
|
|
1,352
|
|
|
(14
|
)
|
%
|
|
|
2,371
|
|
|
|
2,586
|
|
|
(8
|
)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North America
|
|
|
|
4
|
|
|
|
5
|
|
|
(20
|
)
|
%
|
|
|
7
|
|
|
|
9
|
|
|
(22
|
)
|
%
|
Australia
|
|
|
|
10
|
|
|
|
10
|
|
|
—
|
|
%
|
|
|
19
|
|
|
|
19
|
|
|
-
|
|
%
|
Total Copper
|
|
|
|
14
|
|
|
|
15
|
|
|
(7
|
)
|
%
|
|
|
26
|
|
|
|
28
|
|
|
(7
|
)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CAS Consolidated ($/oz, $/lb)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North America
|
|
|
$
|
802
|
|
|
$
|
628
|
|
|
28
|
|
%
|
|
$
|
782
|
|
|
$
|
693
|
|
|
13
|
|
%
|
South America
|
|
|
$
|
711
|
|
|
$
|
825
|
|
|
(14
|
)
|
%
|
|
$
|
747
|
|
|
$
|
736
|
|
|
1
|
|
%
|
Australia
|
|
|
$
|
710
|
|
|
$
|
652
|
|
|
9
|
|
%
|
|
$
|
709
|
|
|
$
|
651
|
|
|
9
|
|
%
|
Africa
|
|
|
$
|
762
|
|
|
$
|
605
|
|
|
26
|
|
%
|
|
$
|
754
|
|
|
$
|
615
|
|
|
23
|
|
%
|
Total Gold
|
|
|
$
|
751
|
|
|
$
|
664
|
|
|
13
|
|
%
|
|
$
|
750
|
|
|
$
|
677
|
|
|
11
|
|
%
|
Total Gold (by-product)
|
|
|
$
|
722
|
|
|
$
|
641
|
|
|
13
|
|
%
|
|
$
|
724
|
|
|
$
|
654
|
|
|
11
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North America
|
|
|
$
|
2.00
|
|
|
$
|
1.60
|
|
|
25
|
|
%
|
|
$
|
1.93
|
|
|
$
|
1.70
|
|
|
14
|
|
%
|
Australia
|
|
|
$
|
1.59
|
|
|
$
|
1.27
|
|
|
25
|
|
%
|
|
$
|
1.63
|
|
|
$
|
1.29
|
|
|
26
|
|
%
|
Total Copper
|
|
|
$
|
1.70
|
|
|
$
|
1.38
|
|
|
23
|
|
%
|
|
$
|
1.72
|
|
|
$
|
1.43
|
|
|
20
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AISC Consolidated ($/oz, $/lb)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North America
|
|
|
$
|
1,056
|
|
|
$
|
797
|
|
|
32
|
|
%
|
|
$
|
996
|
|
|
$
|
869
|
|
|
15
|
|
%
|
South America
|
|
|
$
|
1,005
|
|
|
$
|
1,071
|
|
|
(6
|
)
|
%
|
|
$
|
1,002
|
|
|
$
|
958
|
|
|
5
|
|
%
|
Australia
|
|
|
$
|
851
|
|
|
$
|
782
|
|
|
9
|
|
%
|
|
$
|
853
|
|
|
$
|
779
|
|
|
9
|
|
%
|
Africa
|
|
|
$
|
942
|
|
|
$
|
795
|
|
|
18
|
|
%
|
|
$
|
923
|
|
|
$
|
773
|
|
|
19
|
|
%
|
Total Gold
|
|
|
$
|
1,024
|
|
|
$
|
883
|
|
|
16
|
|
%
|
|
$
|
998
|
|
|
$
|
891
|
|
|
12
|
|
%
|
Total Gold (by-product)
|
|
|
$
|
1,002
|
|
|
$
|
868
|
|
|
15
|
|
%
|
|
$
|
979
|
|
|
$
|
874
|
|
|
12
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North America
|
|
|
$
|
2.57
|
|
|
$
|
2.00
|
|
|
29
|
|
%
|
|
$
|
2.35
|
|
|
$
|
2.05
|
|
|
15
|
|
%
|
Australia
|
|
|
$
|
1.87
|
|
|
$
|
1.55
|
|
|
21
|
|
%
|
|
$
|
1.95
|
|
|
$
|
1.55
|
|
|
26
|
|
%
|
Total Copper
|
|
|
$
|
2.05
|
|
|
$
|
1.69
|
|
|
21
|
|
%
|
|
$
|
2.06
|
|
|
$
|
1.72
|
|
|
20
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NEWMONT MINING CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited, in millions except per share)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Six Months Ended
|
|
|
|
June 30,
|
|
|
June 30,
|
|
|
|
2018
|
|
|
2017
|
|
|
2018
|
|
|
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales
|
|
|
$
|
1,662
|
|
|
|
$
|
1,875
|
|
|
|
$
|
3,479
|
|
|
|
$
|
3,565
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs and expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs applicable to sales (1)
|
|
|
|
965
|
|
|
|
|
999
|
|
|
|
|
1,994
|
|
|
|
|
1,956
|
|
Depreciation and amortization
|
|
|
|
279
|
|
|
|
|
310
|
|
|
|
|
580
|
|
|
|
|
610
|
|
Reclamation and remediation
|
|
|
|
37
|
|
|
|
|
43
|
|
|
|
|
65
|
|
|
|
|
72
|
|
Exploration
|
|
|
|
54
|
|
|
|
|
51
|
|
|
|
|
94
|
|
|
|
|
87
|
|
Advanced projects, research and development
|
|
|
|
36
|
|
|
|
|
32
|
|
|
|
|
70
|
|
|
|
|
58
|
|
General and administrative
|
|
|
|
63
|
|
|
|
|
58
|
|
|
|
|
122
|
|
|
|
|
113
|
|
Other expense, net
|
|
|
|
13
|
|
|
|
|
14
|
|
|
|
|
24
|
|
|
|
|
31
|
|
|
|
|
|
1,447
|
|
|
|
|
1,507
|
|
|
|
|
2,949
|
|
|
|
|
2,927
|
|
Other income (expense)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income, net
|
|
|
|
139
|
|
|
|
|
31
|
|
|
|
|
160
|
|
|
|
|
22
|
|
Interest expense, net of capitalized interest
|
|
|
|
(49
|
)
|
|
|
|
(64
|
)
|
|
|
|
(102
|
)
|
|
|
|
(131
|
)
|
|
|
|
|
90
|
|
|
|
|
(33
|
)
|
|
|
|
58
|
|
|
|
|
(109
|
)
|
Income (loss) before income and mining tax and other items
|
|
|
|
305
|
|
|
|
|
335
|
|
|
|
|
588
|
|
|
|
|
529
|
|
Income and mining tax benefit (expense)
|
|
|
|
(18
|
)
|
|
|
|
(166
|
)
|
|
|
|
(123
|
)
|
|
|
|
(277
|
)
|
Equity income (loss) of affiliates
|
|
|
|
(7
|
)
|
|
|
|
(3
|
)
|
|
|
|
(16
|
)
|
|
|
|
(5
|
)
|
Income (loss) from continuing operations
|
|
|
|
280
|
|
|
|
|
166
|
|
|
|
|
449
|
|
|
|
|
247
|
|
Income (loss) from discontinued operations
|
|
|
|
18
|
|
|
|
|
(15
|
)
|
|
|
|
40
|
|
|
|
|
(38
|
)
|
Net income (loss)
|
|
|
|
298
|
|
|
|
|
151
|
|
|
|
|
489
|
|
|
|
|
209
|
|
Net loss (income) attributable to noncontrolling interests
|
|
|
|
(6
|
)
|
|
|
|
24
|
|
|
|
|
(5
|
)
|
|
|
|
13
|
|
Net income (loss) attributable to Newmont stockholders
|
|
|
$
|
292
|
|
|
|
$
|
175
|
|
|
|
$
|
484
|
|
|
|
$
|
222
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) attributable to Newmont stockholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing operations
|
|
|
$
|
274
|
|
|
|
$
|
190
|
|
|
|
$
|
444
|
|
|
|
$
|
260
|
|
Discontinued operations
|
|
|
|
18
|
|
|
|
|
(15
|
)
|
|
|
|
40
|
|
|
|
|
(38
|
)
|
|
|
|
$
|
292
|
|
|
|
$
|
175
|
|
|
|
$
|
484
|
|
|
|
$
|
222
|
|
Income (loss) per common share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing operations
|
|
|
$
|
0.52
|
|
|
|
$
|
0.36
|
|
|
|
$
|
0.84
|
|
|
|
$
|
0.49
|
|
Discontinued operations
|
|
|
|
0.03
|
|
|
|
|
(0.03
|
)
|
|
|
|
0.07
|
|
|
|
|
(0.07
|
)
|
|
|
|
$
|
0.55
|
|
|
|
$
|
0.33
|
|
|
|
$
|
0.91
|
|
|
|
$
|
0.42
|
|
Diluted:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing operations
|
|
|
$
|
0.51
|
|
|
|
$
|
0.36
|
|
|
|
$
|
0.83
|
|
|
|
$
|
0.49
|
|
Discontinued operations
|
|
|
|
0.03
|
|
|
|
|
(0.03
|
)
|
|
|
|
0.07
|
|
|
|
|
(0.07
|
)
|
|
|
|
$
|
0.54
|
|
|
|
$
|
0.33
|
|
|
|
$
|
0.90
|
|
|
|
$
|
0.42
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash dividends declared per common share
|
|
|
$
|
0.14
|
|
|
|
$
|
0.05
|
|
|
|
$
|
0.28
|
|
|
|
$
|
0.10
|
|
(1) Excludes Depreciation and amortization and Reclamation
and remediation.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NEWMONT MINING CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited, in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Six Months Ended
|
|
|
|
June 30,
|
|
|
June 30,
|
|
|
|
2018
|
|
|
2017
|
|
|
2018
|
|
|
2017
|
Operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
|
|
$
|
298
|
|
|
|
$
|
151
|
|
|
|
$
|
489
|
|
|
|
$
|
209
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
|
279
|
|
|
|
|
310
|
|
|
|
|
580
|
|
|
|
|
610
|
|
Stock-based compensation
|
|
|
|
19
|
|
|
|
|
19
|
|
|
|
|
38
|
|
|
|
|
35
|
|
Reclamation and remediation
|
|
|
|
35
|
|
|
|
|
40
|
|
|
|
|
61
|
|
|
|
|
68
|
|
Loss (income) from discontinued operations
|
|
|
|
(18
|
)
|
|
|
|
15
|
|
|
|
|
(40
|
)
|
|
|
|
38
|
|
Deferred income taxes
|
|
|
|
(29
|
)
|
|
|
|
19
|
|
|
|
|
(19
|
)
|
|
|
|
76
|
|
Gain on asset and investment sales, net
|
|
|
|
(100
|
)
|
|
|
|
(14
|
)
|
|
|
|
(99
|
)
|
|
|
|
(16
|
)
|
Write-downs of inventory and stockpiles and ore on leach pads
|
|
|
|
76
|
|
|
|
|
49
|
|
|
|
|
158
|
|
|
|
|
92
|
|
Other operating adjustments
|
|
|
|
—
|
|
|
|
|
20
|
|
|
|
|
9
|
|
|
|
|
58
|
|
Net change in operating assets and liabilities
|
|
|
|
(159
|
)
|
|
|
|
(84
|
)
|
|
|
|
(510
|
)
|
|
|
|
(268
|
)
|
Net cash provided by (used in) operating activities of continuing
operations
|
|
|
|
401
|
|
|
|
|
525
|
|
|
|
|
667
|
|
|
|
|
902
|
|
Net cash provided by (used in) operating activities of discontinued
operations (1)
|
|
|
|
(2
|
)
|
|
|
|
(3
|
)
|
|
|
|
(5
|
)
|
|
|
|
(9
|
)
|
Net cash provided by (used in) operating activities
|
|
|
|
399
|
|
|
|
|
522
|
|
|
|
|
662
|
|
|
|
|
893
|
|
Investing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Additions to property, plant and mine development
|
|
|
|
(258
|
)
|
|
|
|
(183
|
)
|
|
|
|
(489
|
)
|
|
|
|
(363
|
)
|
Acquisitions, net
|
|
|
|
(39
|
)
|
|
|
|
—
|
|
|
|
|
(39
|
)
|
|
|
|
—
|
|
Proceeds from sales of investments
|
|
|
|
14
|
|
|
|
|
—
|
|
|
|
|
15
|
|
|
|
|
19
|
|
Purchases of investments
|
|
|
|
—
|
|
|
|
|
(113
|
)
|
|
|
|
(6
|
)
|
|
|
|
(113
|
)
|
Other
|
|
|
|
2
|
|
|
|
|
14
|
|
|
|
|
2
|
|
|
|
|
17
|
|
Net cash provided by (used in) investing activities
|
|
|
$
|
(281
|
)
|
|
|
$
|
(282
|
)
|
|
|
|
(517
|
)
|
|
|
|
(440
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends paid to common stockholders
|
|
|
$
|
(74
|
)
|
|
|
$
|
(27
|
)
|
|
|
$
|
(150
|
)
|
|
|
$
|
(54
|
)
|
Repurchase of common stock
|
|
|
|
(6
|
)
|
|
|
|
—
|
|
|
|
|
(70
|
)
|
|
|
|
—
|
|
Distributions to noncontrolling interests
|
|
|
|
(38
|
)
|
|
|
|
(48
|
)
|
|
|
|
(69
|
)
|
|
|
|
(80
|
)
|
Funding from noncontrolling interests
|
|
|
|
20
|
|
|
|
|
25
|
|
|
|
|
52
|
|
|
|
|
46
|
|
Proceeds from sale of noncontrolling interests
|
|
|
|
48
|
|
|
|
|
—
|
|
|
|
|
48
|
|
|
|
|
—
|
|
Payments for withholding of employee taxes related to stock-based
compensation
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
(39
|
)
|
|
|
|
(13
|
)
|
Other
|
|
|
|
(2
|
)
|
|
|
|
(5
|
)
|
|
|
|
(3
|
)
|
|
|
|
(6
|
)
|
Net cash provided by (used in) financing activities
|
|
|
|
(52
|
)
|
|
|
|
(55
|
)
|
|
|
|
(231
|
)
|
|
|
|
(107
|
)
|
Effect of exchange rate changes on cash, cash equivalents and
restricted cash
|
|
|
|
(2
|
)
|
|
|
|
1
|
|
|
|
|
(2
|
)
|
|
|
|
2
|
|
Net change in cash, cash equivalents and restricted cash
|
|
|
|
64
|
|
|
|
|
186
|
|
|
|
|
(88
|
)
|
|
|
|
348
|
|
Cash, cash equivalents and restricted cash at beginning of period
|
|
|
|
3,146
|
|
|
|
|
2,944
|
|
|
|
|
3,298
|
|
|
|
|
2,782
|
|
Cash, cash equivalents and restricted cash at end of period
|
|
|
$
|
3,210
|
|
|
|
$
|
3,130
|
|
|
|
$
|
3,210
|
|
|
|
$
|
3,130
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of cash, cash equivalents and restricted cash:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
$
|
3,127
|
|
|
|
$
|
3,105
|
|
|
|
$
|
3,127
|
|
|
|
$
|
3,105
|
|
Restricted cash included in Other current assets
|
|
|
|
1
|
|
|
|
|
2
|
|
|
|
|
1
|
|
|
|
|
2
|
|
Restricted cash included in Other noncurrent assets
|
|
|
|
82
|
|
|
|
|
23
|
|
|
|
|
82
|
|
|
|
|
23
|
|
Total cash, cash equivalents and restricted cash
|
|
|
$
|
3,210
|
|
|
|
$
|
3,130
|
|
|
|
$
|
3,210
|
|
|
|
$
|
3,130
|
|
(1)
|
|
Net cash provided by (used in) operating activities of
discontinued operations includes $(2), $(3), $(5) and $(6)
related to the Holt royalty obligation and $-, $-, $- and $(3)
related to closing costs for the sale of Batu Hijau, all of which
were paid out of Cash and cash equivalents held for use for
the three and six months ended June 30, 2018 and 2017,
respectively.
|
|
|
|
|
|
|
|
|
|
|
|
|
NEWMONT MINING CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited, in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
At June 30,
|
|
|
At December 31,
|
|
|
|
2018
|
|
|
2017
|
ASSETS
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
$
|
3,127
|
|
|
|
$
|
3,259
|
|
Trade receivables
|
|
|
|
133
|
|
|
|
|
124
|
|
Other accounts receivables
|
|
|
|
101
|
|
|
|
|
113
|
|
Investments
|
|
|
|
56
|
|
|
|
|
62
|
|
Inventories
|
|
|
|
697
|
|
|
|
|
679
|
|
Stockpiles and ore on leach pads
|
|
|
|
711
|
|
|
|
|
676
|
|
Other current assets
|
|
|
|
142
|
|
|
|
|
153
|
|
Current assets
|
|
|
|
4,967
|
|
|
|
|
5,066
|
|
Property, plant and mine development, net
|
|
|
|
12,351
|
|
|
|
|
12,338
|
|
Investments
|
|
|
|
353
|
|
|
|
|
280
|
|
Stockpiles and ore on leach pads
|
|
|
|
1,837
|
|
|
|
|
1,848
|
|
Deferred income tax assets
|
|
|
|
537
|
|
|
|
|
549
|
|
Other non-current assets
|
|
|
|
610
|
|
|
|
|
565
|
|
Total assets
|
|
|
$
|
20,655
|
|
|
|
$
|
20,646
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES
|
|
|
|
|
|
|
|
|
Lease and other financing obligations
|
|
|
$
|
13
|
|
|
|
$
|
4
|
|
Accounts payable
|
|
|
|
360
|
|
|
|
|
375
|
|
Employee-related benefits
|
|
|
|
240
|
|
|
|
|
309
|
|
Income and mining taxes payable
|
|
|
|
71
|
|
|
|
|
248
|
|
Other current liabilities
|
|
|
|
396
|
|
|
|
|
462
|
|
Current liabilities
|
|
|
|
1,080
|
|
|
|
|
1,398
|
|
Debt
|
|
|
|
4,042
|
|
|
|
|
4,040
|
|
Lease and other financing obligations
|
|
|
|
66
|
|
|
|
|
21
|
|
Reclamation and remediation liabilities
|
|
|
|
2,369
|
|
|
|
|
2,345
|
|
Deferred income tax liabilities
|
|
|
|
589
|
|
|
|
|
595
|
|
Employee-related benefits
|
|
|
|
392
|
|
|
|
|
386
|
|
Other non-current liabilities
|
|
|
|
284
|
|
|
|
|
342
|
|
Total liabilities
|
|
|
|
8,822
|
|
|
|
|
9,127
|
|
|
|
|
|
|
|
|
|
|
Contingently redeemable noncontrolling interest
|
|
|
|
48
|
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
EQUITY
|
|
|
|
|
|
|
|
|
Common stock
|
|
|
|
857
|
|
|
|
|
855
|
|
Treasury stock
|
|
|
|
(69
|
)
|
|
|
|
(30
|
)
|
Additional paid-in capital
|
|
|
|
9,595
|
|
|
|
|
9,592
|
|
Accumulated other comprehensive income (loss)
|
|
|
|
(162
|
)
|
|
|
|
(292
|
)
|
Retained earnings
|
|
|
|
592
|
|
|
|
|
410
|
|
Newmont stockholders' equity
|
|
|
|
10,813
|
|
|
|
|
10,535
|
|
Noncontrolling interests
|
|
|
|
972
|
|
|
|
|
984
|
|
Total equity
|
|
|
|
11,785
|
|
|
|
|
11,519
|
|
Total liabilities and equity
|
|
|
$
|
20,655
|
|
|
|
$
|
20,646
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Financial Measures
Non-GAAP financial measures are intended to provide additional
information only and do not have any standard meaning prescribed by U.S.
generally accepted accounting principles (“GAAP”). These measures should
not be considered in isolation or as a substitute for measures of
performance prepared in accordance with GAAP. Unless otherwise noted, we
present the Non-GAAP financial measures of our continuing operations in
the tables below.
Adjusted net income (loss)
Management uses Adjusted net income (loss) to evaluate the Company’s
operating performance and for planning and forecasting future business
operations. The Company believes the use of Adjusted net income (loss)
allows investors and analysts 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
|
|
|
Six Months Ended
|
|
|
|
June 30,
|
|
|
June 30,
|
|
|
|
2018
|
|
|
2017
|
|
|
2018
|
|
|
2017
|
Net income (loss) attributable to Newmont stockholders
|
|
|
$
|
292
|
|
|
|
$
|
175
|
|
|
|
$
|
484
|
|
|
|
$
|
222
|
|
Net loss (income) attributable to Newmont stockholders from
discontinued operations (1)
|
|
|
|
(18
|
)
|
|
|
|
15
|
|
|
|
|
(40
|
)
|
|
|
|
38
|
|
Net income (loss) attributable to Newmont stockholders from
continuing operations
|
|
|
|
274
|
|
|
|
|
190
|
|
|
|
|
444
|
|
|
|
|
260
|
|
Loss (gain) on asset and investment sales, net (2)
|
|
|
|
(99
|
)
|
|
|
|
(14
|
)
|
|
|
|
(99
|
)
|
|
|
|
(16
|
)
|
Restructuring and other, net (3)
|
|
|
|
7
|
|
|
|
|
1
|
|
|
|
|
12
|
|
|
|
|
7
|
|
Reclamation and remediation charges (4)
|
|
|
|
8
|
|
|
|
|
—
|
|
|
|
|
8
|
|
|
|
|
3
|
|
Change in fair value of marketable equity securities (5)
|
|
|
|
(5
|
)
|
|
|
|
—
|
|
|
|
|
(5
|
)
|
|
|
|
—
|
|
Acquisition cost adjustments (6)
|
|
|
|
—
|
|
|
|
|
3
|
|
|
|
|
—
|
|
|
|
|
5
|
|
Impairment of long-lived assets, net (7)
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
2
|
|
Tax effect of adjustments (8)
|
|
|
|
18
|
|
|
|
|
3
|
|
|
|
|
16
|
|
|
|
|
(1
|
)
|
Valuation allowance and other tax adjustments (9)
|
|
|
|
(59
|
)
|
|
|
|
65
|
|
|
|
|
(47
|
)
|
|
|
|
124
|
|
Adjusted net income (loss)
|
|
|
$
|
144
|
|
|
|
$
|
248
|
|
|
|
$
|
329
|
|
|
|
$
|
384
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) per share, basic (10)
|
|
|
$
|
0.55
|
|
|
|
$
|
0.33
|
|
|
|
$
|
0.91
|
|
|
|
$
|
0.42
|
|
Net loss (income) attributable to Newmont stockholders from
discontinued operations
|
|
|
|
(0.03
|
)
|
|
|
|
0.03
|
|
|
|
|
(0.07
|
)
|
|
|
|
0.07
|
|
Net income (loss) attributable to Newmont stockholders from
continuing operations
|
|
|
|
0.52
|
|
|
|
|
0.36
|
|
|
|
|
0.84
|
|
|
|
|
0.49
|
|
Loss (gain) on asset and investment sales, net
|
|
|
|
(0.18
|
)
|
|
|
|
(0.03
|
)
|
|
|
|
(0.18
|
)
|
|
|
|
(0.03
|
)
|
Restructuring and other, net
|
|
|
|
0.01
|
|
|
|
|
—
|
|
|
|
|
0.02
|
|
|
|
|
0.01
|
|
Reclamation and remediation charges
|
|
|
|
0.01
|
|
|
|
|
—
|
|
|
|
|
0.01
|
|
|
|
|
0.01
|
|
Change in fair value of marketable equity securities
|
|
|
|
(0.01
|
)
|
|
|
|
—
|
|
|
|
|
(0.01
|
)
|
|
|
|
—
|
|
Acquisition cost adjustments
|
|
|
|
—
|
|
|
|
|
0.01
|
|
|
|
|
—
|
|
|
|
|
0.01
|
|
Impairment of long-lived assets, net
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
Tax effect of adjustments
|
|
|
|
0.03
|
|
|
|
|
0.01
|
|
|
|
|
0.03
|
|
|
|
|
—
|
|
Valuation allowance and other tax adjustments
|
|
|
|
(0.11
|
)
|
|
|
|
0.11
|
|
|
|
|
(0.09
|
)
|
|
|
|
0.23
|
|
Adjusted net income (loss) per share, basic
|
|
|
$
|
0.27
|
|
|
|
$
|
0.46
|
|
|
|
$
|
0.62
|
|
|
|
$
|
0.72
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) per share, diluted (10)
|
|
|
$
|
0.54
|
|
|
|
$
|
0.33
|
|
|
|
$
|
0.90
|
|
|
|
$
|
0.42
|
|
Net loss (income) attributable to Newmont stockholders from
discontinued operations
|
|
|
|
(0.03
|
)
|
|
|
|
0.03
|
|
|
|
|
(0.07
|
)
|
|
|
|
0.07
|
|
Net income (loss) attributable to Newmont stockholders from
continuing operations
|
|
|
|
0.51
|
|
|
|
|
0.36
|
|
|
|
|
0.83
|
|
|
|
|
0.49
|
|
Loss (gain) on asset and investment sales, net
|
|
|
|
(0.18
|
)
|
|
|
|
(0.03
|
)
|
|
|
|
(0.18
|
)
|
|
|
|
(0.03
|
)
|
Restructuring and other, net
|
|
|
|
0.01
|
|
|
|
|
—
|
|
|
|
|
0.02
|
|
|
|
|
0.01
|
|
Reclamation and remediation charges
|
|
|
|
0.01
|
|
|
|
|
—
|
|
|
|
|
0.01
|
|
|
|
|
0.01
|
|
Change in fair value of marketable equity securities
|
|
|
|
(0.01
|
)
|
|
|
|
—
|
|
|
|
|
(0.01
|
)
|
|
|
|
—
|
|
Acquisition cost adjustments
|
|
|
|
—
|
|
|
|
|
0.01
|
|
|
|
|
—
|
|
|
|
|
0.01
|
|
Impairment of long-lived assets, net
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
Tax effect of adjustments
|
|
|
|
0.03
|
|
|
|
|
0.01
|
|
|
|
|
0.03
|
|
|
|
|
—
|
|
Valuation allowance and other tax adjustments
|
|
|
|
(0.11
|
)
|
|
|
|
0.11
|
|
|
|
|
(0.09
|
)
|
|
|
|
0.23
|
|
Adjusted net income (loss) per share, diluted
|
|
|
$
|
0.26
|
|
|
|
$
|
0.46
|
|
|
|
$
|
0.61
|
|
|
|
$
|
0.72
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares (millions):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
533
|
|
|
|
|
533
|
|
|
|
|
534
|
|
|
|
|
533
|
|
Diluted
|
|
|
|
535
|
|
|
|
|
535
|
|
|
|
|
535
|
|
|
|
|
534
|
|
(1)
|
|
Net loss (income) attributable to Newmont stockholders from
discontinued operations relates to (i) adjustments in our Holt
royalty obligation, presented net of tax expense (benefit) of $5,
$(8), $9 and $(21), respectively, and (ii) Batu Hijau operations,
presented net of tax expense (benefit) of $-, $-, $1 and $-
respectively. For additional information regarding our discontinued
operations, see Note 9 to our Condensed Consolidated Financial
Statements.
|
(2)
|
|
Loss (gain) on asset and investment sales, included in Other
income, net, primarily represents a gain from the exchange of
certain royalty interests for cash consideration and an equity
ownership and warrants in Maverix in June 2018, and a gain from
the exchange of our interest in the Fort á la Corne joint venture
for equity ownership in Shore Gold in June 2017. Amounts are
presented net of income (loss) attributable to noncontrolling
interests of $1, $-, $- and $-, respectively.
|
(3)
|
|
Restructuring and other, included in Other expense, net, primarily
represents certain costs associated with severance, legal and other
settlements Amounts are presented net of income (loss) attributable
to noncontrolling interests of $(2), $-, $(3) and $(1), respectively.
|
(4)
|
|
Reclamation and remediation charges, included in Reclamation
and remediation, represent revisions to remediation plans at
the Company’s former historic mining operations.
|
(5)
|
|
Change in fair value of marketable equity securities, included in Other
income, net, represents unrealized holding gains and losses on
marketable equity securities related primarily to Continental Gold
Inc.
|
(6)
|
|
Acquisition cost adjustments, included in Other expense, net,
represent net adjustments to the contingent consideration and
related liabilities associated with the acquisition of the final
33.33% interest in Boddington in June 2009.
|
(7)
|
|
Impairment of long-lived assets, net, included in Other
expense, net, represents non-cash write-downs of long-lived
assets. Amounts are presented net of income (loss) attributable to
noncontrolling interests of $-, $-, $- and $(1), respectively.
|
(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 and disallowed foreign losses. The adjustment in the three
and six months ended June 30, 2018 is due to a second quarter
reduction to the provisional expense for the Tax Cuts and Jobs Act
of ($45), a second quarter release of valuation allowance on
capital losses of ($15), increases to net operating losses and
other deferred tax assets at Yanacocha of $- and $11 respectively,
and other tax adjustments of $1 and $7, respectively. Amounts are
presented net of income (loss) attributable to noncontrolling
interests of $-, $-, $(5), and $-, respectively. The adjustment in
the three and six months ended June 30, 2017 is due to increases
in tax credit carryovers of $70 and $139, respectively, partially
offset by other tax adjustments of ($5) and ($15), respectively.
|
(10)
|
|
Per share measures may not recalculate due to rounding.
|
|
|
|
Earnings before interest, taxes and depreciation and amortization
and Adjusted earnings before interest, taxes and depreciation and
amortization
Management uses Earnings before interest, taxes and depreciation and
amortization (“EBITDA”) and EBITDA adjusted for non-core or certain
items that have a disproportionate impact on our results for a
particular period (“Adjusted EBITDA”) as non-GAAP measures to evaluate
the Company’s operating performance. EBITDA and Adjusted EBITDA do not
represent, and should not be considered an alternative to, net income
(loss), operating income (loss), or cash flow from operations as those
terms are defined by GAAP, and do not necessarily indicate whether cash
flows will be sufficient to fund cash needs. Although Adjusted EBITDA
and similar measures are frequently used as measures of operations and
the ability to meet debt service requirements by other companies, our
calculation of Adjusted EBITDA is not necessarily comparable to such
other similarly titled captions of other companies. The Company believes
that Adjusted EBITDA provides useful information to investors and others
in understanding and evaluating our operating results in the same manner
as our management and Board of Directors. Management’s determination of
the components of Adjusted EBITDA are evaluated periodically and based,
in part, on a review of non-GAAP financial measures used by mining
industry analysts. Net income (loss) attributable to Newmont
stockholders is reconciled to EBITDA and Adjusted EBITDA as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Six Months Ended
|
|
|
|
June 30,
|
|
|
June 30,
|
|
|
|
2018
|
|
|
2017
|
|
|
2018
|
|
|
2017
|
Net income (loss) attributable to Newmont stockholders
|
|
|
$
|
292
|
|
|
|
$
|
175
|
|
|
|
$
|
484
|
|
|
|
$
|
222
|
|
Net income (loss) attributable to noncontrolling interests
|
|
|
|
6
|
|
|
|
|
(24
|
)
|
|
|
|
5
|
|
|
|
|
(13
|
)
|
Net loss (income) from discontinued operations (1)
|
|
|
|
(18
|
)
|
|
|
|
15
|
|
|
|
|
(40
|
)
|
|
|
|
38
|
|
Equity loss (income) of affiliates
|
|
|
|
7
|
|
|
|
|
3
|
|
|
|
|
16
|
|
|
|
|
5
|
|
Income and mining tax expense (benefit)
|
|
|
|
18
|
|
|
|
|
166
|
|
|
|
|
123
|
|
|
|
|
277
|
|
Depreciation and amortization
|
|
|
|
279
|
|
|
|
|
310
|
|
|
|
|
580
|
|
|
|
|
610
|
|
Interest expense, net
|
|
|
|
49
|
|
|
|
|
64
|
|
|
|
|
102
|
|
|
|
|
131
|
|
EBITDA
|
|
|
$
|
633
|
|
|
|
$
|
709
|
|
|
|
$
|
1,270
|
|
|
|
$
|
1,270
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss (gain) on asset and investment sales (2)
|
|
|
$
|
(100
|
)
|
|
|
$
|
(14
|
)
|
|
|
$
|
(99
|
)
|
|
|
$
|
(16
|
)
|
Restructuring and other (3)
|
|
|
|
9
|
|
|
|
|
1
|
|
|
|
|
15
|
|
|
|
|
8
|
|
Reclamation and remediation charges (4)
|
|
|
|
8
|
|
|
|
|
—
|
|
|
|
|
8
|
|
|
|
|
3
|
|
Change in fair value of marketable equity securities (5)
|
|
|
|
(5
|
)
|
|
|
|
—
|
|
|
|
|
(5
|
)
|
|
|
|
—
|
|
Acquisition cost adjustments (6)
|
|
|
|
—
|
|
|
|
|
3
|
|
|
|
|
—
|
|
|
|
|
5
|
|
Impairment of long-lived assets (7)
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
3
|
|
Adjusted EBITDA
|
|
|
$
|
545
|
|
|
|
$
|
699
|
|
|
|
$
|
1,189
|
|
|
|
$
|
1,273
|
|
(1)
|
|
Net loss (income) from discontinued operations relates to (i)
adjustments in our Holt royalty obligation, presented net of tax
expense (benefit) of $5, $(8), $9 and $(21), respectively, and (ii)
Batu Hijau operations, presented net of tax expense (benefit) of $-,
$-, $1, $-, respectively. For additional information regarding our
discontinued operations, see Note 9 to our Condensed Consolidated
Financial Statements.
|
(2)
|
|
Loss (gain) on asset and investment sales, included in Other
income, net, primarily represents a gain from the exchange of
certain royalty interests for cash consideration and an equity
ownership and warrants in Maverix in June 2018, and a gain from
the exchange of our interest in the Fort á la Corne joint venture
for equity ownership in Shore Gold Inc. (“Shore Gold”) in June
2017.
|
(3)
|
|
Restructuring and other, included in Other expense, net,
represents certain costs associated with severance, legal and
other settlements.
|
(4)
|
|
Reclamation and remediation charges, included in Reclamation
and remediation, represent revisions to remediation plans at
the Company’s former historic mining operations.
|
(5)
|
|
Change in fair value of marketable equity securities, included in Other
income, net, primarily represents unrealized holding gains and
losses on marketable equity securities related primarily to
Continental Gold Inc.
|
(6)
|
|
Acquisition cost adjustments, included in Other expense, net,
represent net adjustments to the contingent consideration and
related liabilities associated with the acquisition of the final
33.33% interest in Boddington in June 2009.
|
(7)
|
|
Impairment of long-lived assets, included in Other expense, net,
represents non-cash write-downs of long-lived assets.
|
|
|
|
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
|
|
|
Six Months Ended
|
|
|
|
June 30,
|
|
|
June 30,
|
|
|
|
2018
|
|
|
2017
|
|
|
2018
|
|
|
2017
|
Net cash provided by (used in) operating activities
|
|
|
$
|
399
|
|
|
|
$
|
522
|
|
|
|
$
|
662
|
|
|
|
$
|
893
|
|
Less: Net cash used in (provided by) operating activities of
discontinued operations
|
|
|
|
2
|
|
|
|
|
3
|
|
|
|
|
5
|
|
|
|
|
9
|
|
Net cash provided by (used in) operating activities of continuing
operations
|
|
|
|
401
|
|
|
|
|
525
|
|
|
|
|
667
|
|
|
|
|
902
|
|
Less: Additions to property, plant and mine development
|
|
|
|
(258
|
)
|
|
|
|
(183
|
)
|
|
|
|
(489
|
)
|
|
|
|
(363
|
)
|
Free Cash Flow
|
|
|
$
|
143
|
|
|
|
$
|
342
|
|
|
|
$
|
178
|
|
|
|
$
|
539
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by (used in) investing activities (1)
|
|
|
$
|
(281
|
)
|
|
|
$
|
(282
|
)
|
|
|
$
|
(517
|
)
|
|
|
$
|
(440
|
)
|
Net cash provided by (used in) financing activities
|
|
|
$
|
(52
|
)
|
|
|
$
|
(55
|
)
|
|
|
$
|
(231
|
)
|
|
|
$
|
(107
|
)
|
(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.
|
|
|
|
Costs applicable to sales per ounce/pound
Costs applicable to sales per ounce/pound are non-GAAP financial
measures. These measures are calculated by dividing the costs applicable
to sales of gold and copper by gold ounces or copper pounds sold,
respectively. These measures are calculated for the periods presented on
a consolidated basis. Costs applicable to sales per ounce/pound
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
|
|
|
Six Months Ended
|
|
|
|
June 30,
|
|
|
June 30,
|
|
|
|
2018
|
|
|
2017
|
|
|
2018
|
|
|
2017
|
Costs applicable to sales (1)
|
|
|
$
|
919
|
|
|
$
|
955
|
|
|
$
|
1,901
|
|
|
$
|
1,873
|
Gold sold (thousand ounces)
|
|
|
|
1,224
|
|
|
|
1,439
|
|
|
|
2,536
|
|
|
|
2,767
|
Costs applicable to sales per ounce (2)
|
|
|
$
|
751
|
|
|
$
|
664
|
|
|
$
|
750
|
|
|
$
|
677
|
(1)
|
|
Includes by-product credits of $18 and $31 during the three and six
months ended June 30, 2018, respectively, and $16 and $26 during the
three and six months ended June 30, 2017, respectively.
|
(2)
|
|
Per ounce measures may not recalculate due to rounding.
|
|
|
|
Costs applicable to sales per pound
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Six Months Ended
|
|
|
|
June 30,
|
|
|
June 30,
|
|
|
|
2018
|
|
|
2017
|
|
|
2018
|
|
|
2017
|
Costs applicable to sales (1)
|
|
|
$
|
46
|
|
|
$
|
44
|
|
|
$
|
93
|
|
|
$
|
83
|
Copper sold (million pounds)
|
|
|
|
27
|
|
|
|
32
|
|
|
|
54
|
|
|
|
58
|
Costs applicable to sales per pound (2)
|
|
|
$
|
1.70
|
|
|
$
|
1.38
|
|
|
$
|
1.72
|
|
|
$
|
1.43
|
(1)
|
|
Includes by-product credits of $1 and $2 during the three and six
months ended June 30, 2018, respectively, and $2 and $3 during the
three and six months ended June 30, 2017, respectively.
|
(2)
|
|
Per pound measures may not recalculate due to rounding.
|
|
|
|
All-In Sustaining Costs
Newmont has worked to develop 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 aid in the
understanding of the economics of our operations and performance
compared to other producers and in the investor’s visibility by better
defining the total costs associated with production.
All-in sustaining cost (“AISC”) amounts are intended to provide
additional information only and do not have any standardized meaning
prescribed by GAAP and should not be considered in isolation or as a
substitute for measures of performance prepared in accordance with GAAP.
The measures are not necessarily indicative of operating profit or cash
flow from operations as determined under GAAP. Other companies may
calculate these measures differently as a result of differences in the
underlying accounting principles, policies applied and in accounting
frameworks such as in International Financial Reporting Standards
(“IFRS”), or by reflecting the benefit from selling non-gold metals as a
reduction to AISC. Differences may also arise related to definitional
differences of sustaining versus development capital activities based
upon each company’s internal policies.
The following disclosure provides information regarding the adjustments
made in determining the all-in sustaining costs measure:
Costs applicable to sales. Includes all direct and indirect costs
related to current production incurred to execute the current mine
plan. We exclude certain exceptional or unusual amounts from Costs
applicable to sales (“CAS”), such as significant revisions to
recovery amounts. CAS includes by-product credits from certain metals
obtained during the process of extracting and processing the primary
ore-body. CAS is accounted for on an accrual basis and excludes Depreciation
and amortization and Reclamation and remediation,
which is consistent with our presentation of CAS on the Condensed
Consolidated Statements of Operations. In determining AISC, only the CAS
associated with producing and selling an ounce of gold is included in
the measure. Therefore, the amount of gold CAS included in AISC is
derived from the CAS presented in the Company’s Condensed Consolidated
Statements of Operations less the amount of CAS attributable to the
production of copper at our Phoenix and Boddington mines. The copper CAS
at those mine sites is disclosed in Note 3 to the Condensed Consolidated
Financial Statements. The allocation of CAS between gold and copper at
the Phoenix and Boddington mines is based upon the relative sales value
of gold and copper produced during the period.
Reclamation costs. Includes accretion expense related to
Reclamation liabilities and the amortization of the related Asset
Retirement Cost (“ARC”) for the Company’s operating properties.
Accretion related to the Reclamation liabilities and the amortization of
the ARC assets for reclamation does not reflect annual cash outflows but
are calculated in accordance with GAAP. The accretion and amortization
reflect the periodic costs of reclamation associated with current
production and are therefore included in the measure. The allocation of
these costs to gold and copper is determined using the same allocation
used in the allocation of CAS between gold and copper at the Phoenix and
Boddington mines.
Advanced projects, research and development and exploration.
Includes incurred expenses related to projects that are designed to
increase or enhance current production and exploration. We note that as
current resources are depleted, exploration and advanced projects are
necessary for us to replace the depleting reserves or enhance the
recovery and processing of the current reserves. As this relates to
sustaining our production, and is 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 the amount
attributable to the production of copper at our Phoenix and Boddington
mines. The allocation of these costs to gold and copper is determined
using the same allocation used in the allocation of CAS between gold and
copper at the Phoenix and Boddington mines.
General and administrative. Includes costs related to
administrative tasks not directly related to current production, but
rather related to support our corporate structure and fulfill 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.
Other expense, net. We exclude certain exceptional or unusual
expenses from Other expense, net, such as restructuring, as
these are not indicative to sustaining our current operations.
Furthermore, this adjustment to Other expense, net is also
consistent with the nature of the adjustments made to Net income
(loss) attributable to Newmont stockholders as disclosed in the
Company’s non-GAAP financial measure Adjusted net income (loss). The
allocation of these costs to gold and copper is determined using the
same allocation used in the allocation of CAS between gold and copper at
the Phoenix and Boddington mines.
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 our
Condensed Consolidated Statements of Operations.
Sustaining capital. We determined sustaining capital as those
capital expenditures that are necessary to maintain current production
and execute the current mine plan. Capital expenditures to develop new
operations, or related to projects at existing operations where these
projects will enhance production or reserves, are generally considered
non-sustaining or development capital. We determined the classification
of sustaining and development capital projects based on a systematic
review of our project portfolio in light of the nature of each project.
Sustaining capital costs 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 copper is
determined using the same allocation used in the allocation of CAS
between gold and copper at the Phoenix and Boddington mines.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Advanced
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Projects,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and
|
|
|
|
|
|
|
|
|
|
|
Treatment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
All-In
|
|
|
|
Costs
|
|
|
|
|
|
|
Development
|
|
|
General
|
|
|
Other
|
|
|
and
|
|
|
|
|
|
|
All-In
|
|
|
Ounces
|
|
|
Sustaining
|
Three Months Ended
|
|
|
Applicable
|
|
|
Reclamation
|
|
|
and
|
|
|
and
|
|
|
Expense,
|
|
|
Refining
|
|
|
Sustaining
|
|
|
Sustaining
|
|
|
(000
|
)/Pounds
|
|
|
Costs per
|
June 30, 2018
|
|
|
to Sales(1)(2)(3)
|
|
|
Costs(4)
|
|
|
Exploration(5)
|
|
|
Administrative
|
|
|
Net(6)
|
|
|
Costs
|
|
|
Capital(7)
|
|
|
Costs
|
|
|
(millions) Sold
|
|
|
oz/lb(8)
|
Gold
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Carlin
|
|
|
$
|
178
|
|
|
$
|
2
|
|
|
$
|
5
|
|
|
$
|
1
|
|
|
$
|
—
|
|
|
|
$
|
—
|
|
|
$
|
42
|
|
|
$
|
228
|
|
|
187
|
|
|
|
$
|
1,217
|
Phoenix
|
|
|
|
44
|
|
|
|
—
|
|
|
|
1
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
2
|
|
|
|
9
|
|
|
|
56
|
|
|
53
|
|
|
|
|
1,057
|
Twin Creeks
|
|
|
|
66
|
|
|
|
—
|
|
|
|
3
|
|
|
|
1
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
6
|
|
|
|
76
|
|
|
86
|
|
|
|
|
878
|
Long Canyon
|
|
|
|
18
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
3
|
|
|
|
21
|
|
|
43
|
|
|
|
|
502
|
CC&V
|
|
|
|
42
|
|
|
|
3
|
|
|
|
1
|
|
|
|
1
|
|
|
|
1
|
|
|
|
|
—
|
|
|
|
9
|
|
|
|
57
|
|
|
67
|
|
|
|
|
857
|
Other North America
|
|
|
|
—
|
|
|
|
—
|
|
|
|
18
|
|
|
|
1
|
|
|
|
1
|
|
|
|
|
—
|
|
|
|
2
|
|
|
|
22
|
|
|
—
|
|
|
|
|
—
|
North America
|
|
|
|
348
|
|
|
|
5
|
|
|
|
28
|
|
|
|
4
|
|
|
|
2
|
|
|
|
|
2
|
|
|
|
71
|
|
|
|
460
|
|
|
436
|
|
|
|
|
1,056
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Yanacocha
|
|
|
|
92
|
|
|
|
9
|
|
|
|
10
|
|
|
|
—
|
|
|
|
2
|
|
|
|
|
—
|
|
|
|
5
|
|
|
|
118
|
|
|
113
|
|
|
|
|
1,049
|
Merian
|
|
|
|
61
|
|
|
|
1
|
|
|
|
6
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
18
|
|
|
|
86
|
|
|
102
|
|
|
|
|
833
|
Other South America
|
|
|
|
—
|
|
|
|
—
|
|
|
|
10
|
|
|
|
3
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
—
|
|
|
|
13
|
|
|
—
|
|
|
|
|
—
|
South America
|
|
|
|
153
|
|
|
|
10
|
|
|
|
26
|
|
|
|
3
|
|
|
|
2
|
|
|
|
|
—
|
|
|
|
23
|
|
|
|
217
|
|
|
215
|
|
|
|
|
1,005
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Boddington
|
|
|
|
130
|
|
|
|
4
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
5
|
|
|
|
7
|
|
|
|
146
|
|
|
177
|
|
|
|
|
826
|
Tanami
|
|
|
|
74
|
|
|
|
—
|
|
|
|
3
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
17
|
|
|
|
94
|
|
|
103
|
|
|
|
|
925
|
Kalgoorlie
|
|
|
|
62
|
|
|
|
1
|
|
|
|
3
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
5
|
|
|
|
71
|
|
|
93
|
|
|
|
|
753
|
Other Australia
|
|
|
|
—
|
|
|
|
2
|
|
|
|
3
|
|
|
|
3
|
|
|
|
(2
|
)
|
|
|
|
—
|
|
|
|
—
|
|
|
|
6
|
|
|
—
|
|
|
|
|
—
|
Australia
|
|
|
|
266
|
|
|
|
7
|
|
|
|
9
|
|
|
|
3
|
|
|
|
(2
|
)
|
|
|
|
5
|
|
|
|
29
|
|
|
|
317
|
|
|
373
|
|
|
|
|
851
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ahafo
|
|
|
|
90
|
|
|
|
1
|
|
|
|
2
|
|
|
|
1
|
|
|
|
1
|
|
|
|
|
—
|
|
|
|
6
|
|
|
|
101
|
|
|
101
|
|
|
|
|
1,003
|
Akyem
|
|
|
|
62
|
|
|
|
6
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
10
|
|
|
|
78
|
|
|
99
|
|
|
|
|
794
|
Other Africa
|
|
|
|
—
|
|
|
|
—
|
|
|
|
7
|
|
|
|
1
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
—
|
|
|
|
8
|
|
|
—
|
|
|
|
|
—
|
Africa
|
|
|
|
152
|
|
|
|
7
|
|
|
|
9
|
|
|
|
2
|
|
|
|
1
|
|
|
|
|
—
|
|
|
|
16
|
|
|
|
187
|
|
|
200
|
|
|
|
|
942
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate and Other
|
|
|
|
—
|
|
|
|
—
|
|
|
|
18
|
|
|
|
51
|
|
|
|
1
|
|
|
|
|
—
|
|
|
|
2
|
|
|
|
72
|
|
|
—
|
|
|
|
|
—
|
Total Gold
|
|
|
$
|
919
|
|
|
$
|
29
|
|
|
$
|
90
|
|
|
$
|
63
|
|
|
$
|
4
|
|
|
|
$
|
7
|
|
|
$
|
141
|
|
|
$
|
1,253
|
|
|
1,224
|
|
|
|
$
|
1,024
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Copper
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Phoenix
|
|
|
$
|
14
|
|
|
$
|
1
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
$
|
1
|
|
|
$
|
2
|
|
|
$
|
18
|
|
|
7
|
|
|
|
$
|
2.57
|
Boddington
|
|
|
|
32
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
2
|
|
|
|
3
|
|
|
|
37
|
|
|
20
|
|
|
|
|
1.87
|
Total Copper
|
|
|
$
|
46
|
|
|
$
|
1
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
$
|
3
|
|
|
$
|
5
|
|
|
$
|
55
|
|
|
27
|
|
|
|
$
|
2.05
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
|
|
|
$
|
965
|
|
|
$
|
30
|
|
|
$
|
90
|
|
|
$
|
63
|
|
|
$
|
4
|
|
|
|
$
|
10
|
|
|
$
|
146
|
|
|
$
|
1,308
|
|
|
|
|
|
|
|
(1)
|
|
Excludes Depreciation and amortization and Reclamation
and remediation.
|
(2)
|
|
Includes by-product credits of $19 and excludes co-product revenues
of $81.
|
(3)
|
|
Includes stockpile and leach pad inventory adjustments of $25 at
Carlin, $14 at Twin Creeks, $1 at Yanacocha, $18 at Ahafo and $15 at
Akyem.
|
(4)
|
|
Reclamation costs include operating accretion and amortization of
asset retirement costs of $15 and $15, respectively, and exclude
non-operating accretion and reclamation and remediation adjustments
of $11 and $11, respectively.
|
(5)
|
|
Advanced projects, research and development and Exploration
of $3 at Carlin, $6 at Long Canyon, $2 at Yanacocha, $1 at Tanami,
$2 at Ahafo and $4 at Akyem are recorded in “Other” of the
respective region for development projects.
|
(6)
|
|
Other expense, net is adjusted for restructuring and other
costs of $9.
|
(7)
|
|
Excludes development capital expenditures, capitalized interest and
changes in accrued capital, totaling $112. The following are major
development projects: Twin Creeks underground, Quecher Main, Merian,
Tanami expansions, Subika and Ahafo mill expansions.
|
(8)
|
|
Per ounce and per pound measures may not recalculate due to rounding.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Advanced
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Projects,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and
|
|
|
|
|
|
|
|
|
Treatment
|
|
|
|
|
|
|
|
|
|
|
|
All-In
|
|
|
|
Costs
|
|
|
|
|
|
Development
|
|
|
General
|
|
|
Other
|
|
|
and
|
|
|
|
|
|
All-In
|
|
|
Ounces
|
|
|
Sustaining
|
Three Months Ended
|
|
|
Applicable
|
|
|
Reclamation
|
|
|
and
|
|
|
and
|
|
|
Expense,
|
|
|
Refining
|
|
|
Sustaining
|
|
|
Sustaining
|
|
|
(000
|
)/Pounds
|
|
|
Costs per
|
June 30, 2017
|
|
|
to Sales(1)(2)(3)
|
|
|
Costs(4)
|
|
|
Exploration(5)
|
|
|
Administrative
|
|
|
Net(6)
|
|
|
Costs
|
|
|
Capital(7)
|
|
|
Costs
|
|
|
(millions) Sold
|
|
|
oz/lb(8)
|
Gold
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Carlin
|
|
|
$
|
170
|
|
|
$
|
2
|
|
|
$
|
5
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
47
|
|
|
$
|
224
|
|
|
222
|
|
|
|
$
|
1,009
|
Phoenix
|
|
|
|
46
|
|
|
|
2
|
|
|
|
3
|
|
|
|
—
|
|
|
|
—
|
|
|
|
3
|
|
|
|
2
|
|
|
|
56
|
|
|
57
|
|
|
|
|
982
|
Twin Creeks
|
|
|
|
61
|
|
|
|
1
|
|
|
|
2
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
10
|
|
|
|
74
|
|
|
124
|
|
|
|
|
597
|
Long Canyon
|
|
|
|
13
|
|
|
|
1
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
14
|
|
|
45
|
|
|
|
|
311
|
CC&V
|
|
|
|
74
|
|
|
|
1
|
|
|
|
3
|
|
|
|
1
|
|
|
|
—
|
|
|
|
—
|
|
|
|
4
|
|
|
|
83
|
|
|
132
|
|
|
|
|
629
|
Other North America
|
|
|
|
—
|
|
|
|
—
|
|
|
|
9
|
|
|
|
—
|
|
|
|
2
|
|
|
|
—
|
|
|
|
—
|
|
|
|
11
|
|
|
—
|
|
|
|
|
—
|
North America
|
|
|
|
364
|
|
|
|
7
|
|
|
|
22
|
|
|
|
1
|
|
|
|
2
|
|
|
|
3
|
|
|
|
63
|
|
|
|
462
|
|
|
580
|
|
|
|
|
797
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Yanacocha
|
|
|
|
134
|
|
|
|
18
|
|
|
|
5
|
|
|
|
1
|
|
|
|
2
|
|
|
|
—
|
|
|
|
9
|
|
|
|
169
|
|
|
120
|
|
|
|
|
1,408
|
Merian
|
|
|
|
64
|
|
|
|
—
|
|
|
|
4
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
4
|
|
|
|
72
|
|
|
120
|
|
|
|
|
600
|
Other South America
|
|
|
|
—
|
|
|
|
—
|
|
|
|
12
|
|
|
|
3
|
|
|
|
1
|
|
|
|
—
|
|
|
|
—
|
|
|
|
16
|
|
|
—
|
|
|
|
|
—
|
South America
|
|
|
|
198
|
|
|
|
18
|
|
|
|
21
|
|
|
|
4
|
|
|
|
3
|
|
|
|
—
|
|
|
|
13
|
|
|
|
257
|
|
|
240
|
|
|
|
|
1,071
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Boddington
|
|
|
|
147
|
|
|
|
1
|
|
|
|
1
|
|
|
|
—
|
|
|
|
—
|
|
|
|
5
|
|
|
|
13
|
|
|
|
167
|
|
|
211
|
|
|
|
|
791
|
Tanami
|
|
|
|
58
|
|
|
|
1
|
|
|
|
1
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
14
|
|
|
|
74
|
|
|
98
|
|
|
|
|
755
|
Kalgoorlie
|
|
|
|
55
|
|
|
|
—
|
|
|
|
1
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
4
|
|
|
|
60
|
|
|
90
|
|
|
|
|
667
|
Other Australia
|
|
|
|
—
|
|
|
|
—
|
|
|
|
7
|
|
|
|
2
|
|
|
|
—
|
|
|
|
—
|
|
|
|
2
|
|
|
|
11
|
|
|
—
|
|
|
|
|
—
|
Australia
|
|
|
|
260
|
|
|
|
2
|
|
|
|
10
|
|
|
|
2
|
|
|
|
—
|
|
|
|
5
|
|
|
|
33
|
|
|
|
312
|
|
|
399
|
|
|
|
|
782
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ahafo
|
|
|
|
60
|
|
|
|
1
|
|
|
|
9
|
|
|
|
—
|
|
|
|
2
|
|
|
|
—
|
|
|
|
12
|
|
|
|
84
|
|
|
89
|
|
|
|
|
944
|
Akyem
|
|
|
|
73
|
|
|
|
3
|
|
|
|
1
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
4
|
|
|
|
81
|
|
|
131
|
|
|
|
|
618
|
Other Africa
|
|
|
|
—
|
|
|
|
—
|
|
|
|
6
|
|
|
|
4
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
10
|
|
|
—
|
|
|
|
|
—
|
Africa
|
|
|
|
133
|
|
|
|
4
|
|
|
|
16
|
|
|
|
4
|
|
|
|
2
|
|
|
|
—
|
|
|
|
16
|
|
|
|
175
|
|
|
220
|
|
|
|
|
795
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate and Other
|
|
|
|
—
|
|
|
|
—
|
|
|
|
14
|
|
|
|
47
|
|
|
|
3
|
|
|
|
—
|
|
|
|
1
|
|
|
|
65
|
|
|
—
|
|
|
|
|
—
|
Total Gold
|
|
|
$
|
955
|
|
|
$
|
31
|
|
|
$
|
83
|
|
|
$
|
58
|
|
|
$
|
10
|
|
|
$
|
8
|
|
|
$
|
126
|
|
|
$
|
1,271
|
|
|
1,439
|
|
|
|
$
|
883
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Copper
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Phoenix
|
|
|
$
|
16
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
4
|
|
|
$
|
20
|
|
|
10
|
|
|
|
$
|
2.00
|
Boddington
|
|
|
|
28
|
|
|
|
1
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
4
|
|
|
|
1
|
|
|
|
34
|
|
|
22
|
|
|
|
|
1.55
|
Total Copper
|
|
|
$
|
44
|
|
|
$
|
1
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
4
|
|
|
$
|
5
|
|
|
$
|
54
|
|
|
32
|
|
|
|
$
|
1.69
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
|
|
|
$
|
999
|
|
|
$
|
32
|
|
|
$
|
83
|
|
|
$
|
58
|
|
|
$
|
10
|
|
|
$
|
12
|
|
|
$
|
131
|
|
|
$
|
1,325
|
|
|
|
|
|
|
|
(1)
|
|
Excludes Depreciation and amortization and Reclamation
and remediation.
|
(2)
|
|
Includes by-product credits of $18 and exclude co-product revenues
of $76.
|
(3)
|
|
Includes stockpile and leach pad inventory adjustments of $9 at
Carlin, $8 at Twin Creeks, $24 at Yanacocha and $5 at Akyem.
|
(4)
|
|
Reclamation costs include operating accretion and amortization of
asset retirement costs of $20 and $12, respectively, and exclude
non-operating accretion and reclamation and remediation adjustments
of $6 and $17, respectively.
|
(5)
|
|
Advanced projects, research and development and Exploration
of $5 at Long Canyon, $3 at Yanacocha, $5 at Tanami, $1 at Ahafo
and $4 at Akyem are recorded in “Other” of the respective region
for development projects.
|
(6)
|
|
Other expense, net is adjusted for restructuring and other
costs of $1 and acquisition cost adjustments of $3.
|
(7)
|
|
Excludes development capital expenditures, capitalized interest and
changes in accrued capital, totaling $52. The following are major
development projects: Merian, Subika underground and the Tanami and
Ahafo mill expansions.
|
(8)
|
|
Per ounce and per pound measures may not recalculate due to rounding.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Advanced
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Projects,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and
|
|
|
|
|
|
|
|
|
Treatment
|
|
|
|
|
|
|
|
|
|
|
|
|
All-In
|
|
|
|
Costs
|
|
|
|
|
|
|
Development
|
|
|
General
|
|
|
Other
|
|
|
and
|
|
|
|
|
|
|
All-In
|
|
|
Ounces
|
|
|
Sustaining
|
Six Months Ended
|
|
|
Applicable
|
|
|
Reclamation
|
|
|
and
|
|
|
and
|
|
|
Expense,
|
|
|
Refining
|
|
|
Sustaining
|
|
|
Sustaining
|
|
|
(000
|
)/Pounds
|
|
|
Costs per
|
June 30, 2018
|
|
|
to Sales(1)(2)(3)
|
|
|
Costs(4)
|
|
|
Exploration(5)
|
|
|
Administrative
|
|
|
Net(6)
|
|
|
Costs
|
|
|
Capital(7)
|
|
|
Costs
|
|
|
(millions) Sold
|
|
|
oz/lb(8)
|
Gold
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Carlin
|
|
|
$
|
377
|
|
|
$
|
5
|
|
|
$
|
9
|
|
|
$
|
3
|
|
|
$
|
—
|
|
|
|
$
|
—
|
|
|
$
|
72
|
|
|
$
|
466
|
|
|
416
|
|
|
|
$
|
1,119
|
Phoenix
|
|
|
|
106
|
|
|
|
1
|
|
|
|
2
|
|
|
|
1
|
|
|
|
—
|
|
|
|
|
4
|
|
|
|
14
|
|
|
|
128
|
|
|
130
|
|
|
|
|
983
|
Twin Creeks
|
|
|
|
130
|
|
|
|
1
|
|
|
|
5
|
|
|
|
1
|
|
|
|
1
|
|
|
|
|
—
|
|
|
|
11
|
|
|
|
149
|
|
|
169
|
|
|
|
|
882
|
Long Canyon
|
|
|
|
34
|
|
|
|
1
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
5
|
|
|
|
40
|
|
|
87
|
|
|
|
|
464
|
CC&V
|
|
|
|
81
|
|
|
|
3
|
|
|
|
3
|
|
|
|
1
|
|
|
|
1
|
|
|
|
|
—
|
|
|
|
18
|
|
|
|
107
|
|
|
129
|
|
|
|
|
831
|
Other North America
|
|
|
|
—
|
|
|
|
—
|
|
|
|
31
|
|
|
|
1
|
|
|
|
2
|
|
|
|
|
—
|
|
|
|
4
|
|
|
|
38
|
|
|
—
|
|
|
|
|
—
|
North America
|
|
|
|
728
|
|
|
|
11
|
|
|
|
50
|
|
|
|
7
|
|
|
|
4
|
|
|
|
|
4
|
|
|
|
124
|
|
|
|
928
|
|
|
931
|
|
|
|
|
996
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Yanacocha
|
|
|
|
206
|
|
|
|
19
|
|
|
|
16
|
|
|
|
—
|
|
|
|
3
|
|
|
|
|
—
|
|
|
|
11
|
|
|
|
255
|
|
|
220
|
|
|
|
|
1,160
|
Merian
|
|
|
|
128
|
|
|
|
1
|
|
|
|
9
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
27
|
|
|
|
165
|
|
|
227
|
|
|
|
|
727
|
Other South America
|
|
|
|
—
|
|
|
|
—
|
|
|
|
21
|
|
|
|
6
|
|
|
|
1
|
|
|
|
|
—
|
|
|
|
—
|
|
|
|
28
|
|
|
—
|
|
|
|
|
—
|
South America
|
|
|
|
334
|
|
|
|
20
|
|
|
|
46
|
|
|
|
6
|
|
|
|
4
|
|
|
|
|
—
|
|
|
|
38
|
|
|
|
448
|
|
|
447
|
|
|
|
|
1,002
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Boddington
|
|
|
|
258
|
|
|
|
6
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
10
|
|
|
|
20
|
|
|
|
294
|
|
|
337
|
|
|
|
|
873
|
Tanami
|
|
|
|
150
|
|
|
|
1
|
|
|
|
8
|
|
|
|
—
|
|
|
|
1
|
|
|
|
|
—
|
|
|
|
29
|
|
|
|
189
|
|
|
229
|
|
|
|
|
828
|
Kalgoorlie
|
|
|
|
122
|
|
|
|
2
|
|
|
|
6
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
13
|
|
|
|
143
|
|
|
181
|
|
|
|
|
787
|
Other Australia
|
|
|
|
—
|
|
|
|
2
|
|
|
|
6
|
|
|
|
5
|
|
|
|
(3
|
)
|
|
|
|
—
|
|
|
|
1
|
|
|
|
11
|
|
|
—
|
|
|
|
|
—
|
Australia
|
|
|
|
530
|
|
|
|
11
|
|
|
|
20
|
|
|
|
5
|
|
|
|
(2
|
)
|
|
|
|
10
|
|
|
|
63
|
|
|
|
637
|
|
|
747
|
|
|
|
|
853
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ahafo
|
|
|
|
180
|
|
|
|
2
|
|
|
|
4
|
|
|
|
1
|
|
|
|
1
|
|
|
|
|
—
|
|
|
|
13
|
|
|
|
201
|
|
|
205
|
|
|
|
|
982
|
Akyem
|
|
|
|
129
|
|
|
|
12
|
|
|
|
—
|
|
|
|
—
|
|
|
|
1
|
|
|
|
|
—
|
|
|
|
20
|
|
|
|
162
|
|
|
206
|
|
|
|
|
789
|
Other Africa
|
|
|
|
—
|
|
|
|
—
|
|
|
|
13
|
|
|
|
3
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
—
|
|
|
|
16
|
|
|
—
|
|
|
|
|
—
|
Africa
|
|
|
|
309
|
|
|
|
14
|
|
|
|
17
|
|
|
|
4
|
|
|
|
2
|
|
|
|
|
—
|
|
|
|
33
|
|
|
|
379
|
|
|
411
|
|
|
|
|
923
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate and Other
|
|
|
|
—
|
|
|
|
—
|
|
|
|
31
|
|
|
|
100
|
|
|
|
1
|
|
|
|
|
—
|
|
|
|
6
|
|
|
|
138
|
|
|
—
|
|
|
|
|
—
|
Total Gold
|
|
|
$
|
1,901
|
|
|
$
|
56
|
|
|
$
|
164
|
|
|
$
|
122
|
|
|
$
|
9
|
|
|
|
$
|
14
|
|
|
$
|
264
|
|
|
$
|
2,530
|
|
|
2,536
|
|
|
|
$
|
998
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Copper
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Phoenix
|
|
|
$
|
30
|
|
|
$
|
1
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
$
|
1
|
|
|
$
|
4
|
|
|
$
|
36
|
|
|
15
|
|
|
|
|
2.35
|
Boddington
|
|
|
|
63
|
|
|
|
1
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
5
|
|
|
|
6
|
|
|
|
75
|
|
|
39
|
|
|
|
|
1.95
|
Total Copper
|
|
|
$
|
93
|
|
|
$
|
2
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
$
|
6
|
|
|
$
|
10
|
|
|
$
|
111
|
|
|
54
|
|
|
|
$
|
2.06
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
|
|
|
$
|
1,994
|
|
|
$
|
58
|
|
|
$
|
164
|
|
|
$
|
122
|
|
|
$
|
9
|
|
|
|
$
|
20
|
|
|
$
|
274
|
|
|
$
|
2,641
|
|
|
|
|
|
|
|
(1)
|
|
Excludes Depreciation and amortization and Reclamation
and remediation.
|
(2)
|
|
Includes by-product credits of $33 and excludes co-product copper
revenues of $159.
|
(3)
|
|
Includes stockpile and leach pad inventory adjustments of $46 at
Carlin, $26 at Twin Creeks, $19 at Yanacocha, $33 at Ahafo and $28
at Akyem.
|
(4)
|
|
Reclamation costs include operating accretion and amortization of
asset retirement costs of $30 and $28, respectively, and exclude
non-operating accretion and reclamation and remediation
adjustments of $21 and $14, respectively.
|
(5)
|
|
Advanced projects, research and development and Exploration
of $6 at Carlin, $12 at Long Canyon, $6 at Yanacocha, $2 at
Tanami, $4 at Ahafo and $7 at Akyem are recorded in “Other” of the
respective region for development projects.
|
(6)
|
|
Other expense, net is adjusted for restructuring and other
costs of $15.
|
(7)
|
|
Excludes development capital expenditures, capitalized interest
and changes in accrued capital, totaling $215. The following are
major development projects: Twin Creeks underground, Quecher Main,
Merian, Tanami expansions, Subika and Ahafo mill expansions.
|
(8)
|
|
Per ounce and per pound measures may not recalculate due to rounding.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Advanced
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Projects,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and
|
|
|
|
|
|
|
|
|
Treatment
|
|
|
|
|
|
|
|
|
|
|
|
All-In
|
|
|
|
Costs
|
|
|
|
|
|
Development
|
|
|
General
|
|
|
Other
|
|
|
and
|
|
|
|
|
|
All-In
|
|
|
Ounces
|
|
|
Sustaining
|
Six Months Ended
|
|
|
Applicable
|
|
|
Reclamation
|
|
|
and
|
|
|
and
|
|
|
Expense,
|
|
|
Refining
|
|
|
Sustaining
|
|
|
Sustaining
|
|
|
(000)/Pounds
|
|
|
Costs per
|
June 30, 2017
|
|
|
to Sales(1)(2)(3)
|
|
|
Costs(4)
|
|
|
Exploration(5)
|
|
|
Administrative
|
|
|
Net(6)
|
|
|
Costs
|
|
|
Capital(7)
|
|
|
Costs
|
|
|
(millions) Sold
|
|
|
oz/lb(8)
|
Gold
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Carlin
|
|
|
$
|
378
|
|
|
$
|
3
|
|
|
$
|
8
|
|
|
$
|
1
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
95
|
|
|
$
|
485
|
|
|
439
|
|
|
$
|
1,105
|
Phoenix
|
|
|
|
90
|
|
|
|
3
|
|
|
|
4
|
|
|
|
—
|
|
|
|
—
|
|
|
|
6
|
|
|
|
6
|
|
|
|
109
|
|
|
103
|
|
|
|
1,058
|
Twin Creeks
|
|
|
|
111
|
|
|
|
2
|
|
|
|
4
|
|
|
|
1
|
|
|
|
—
|
|
|
|
—
|
|
|
|
17
|
|
|
|
135
|
|
|
208
|
|
|
|
649
|
Long Canyon
|
|
|
|
25
|
|
|
|
1
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
1
|
|
|
|
27
|
|
|
77
|
|
|
|
351
|
CC&V
|
|
|
|
149
|
|
|
|
2
|
|
|
|
7
|
|
|
|
1
|
|
|
|
—
|
|
|
|
—
|
|
|
|
8
|
|
|
|
167
|
|
|
260
|
|
|
|
642
|
Other North America
|
|
|
|
—
|
|
|
|
—
|
|
|
|
17
|
|
|
|
—
|
|
|
|
3
|
|
|
|
—
|
|
|
|
2
|
|
|
|
22
|
|
|
—
|
|
|
|
—
|
North America
|
|
|
|
753
|
|
|
|
11
|
|
|
|
40
|
|
|
|
3
|
|
|
|
3
|
|
|
|
6
|
|
|
|
129
|
|
|
|
945
|
|
|
1,087
|
|
|
|
869
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Yanacocha
|
|
|
|
253
|
|
|
|
31
|
|
|
|
7
|
|
|
|
2
|
|
|
|
3
|
|
|
|
—
|
|
|
|
20
|
|
|
|
316
|
|
|
268
|
|
|
|
1,179
|
Merian
|
|
|
|
112
|
|
|
|
—
|
|
|
|
8
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
8
|
|
|
|
128
|
|
|
228
|
|
|
|
561
|
Other South America
|
|
|
|
—
|
|
|
|
—
|
|
|
|
24
|
|
|
|
6
|
|
|
|
1
|
|
|
|
—
|
|
|
|
—
|
|
|
|
31
|
|
|
—
|
|
|
|
—
|
South America
|
|
|
|
365
|
|
|
|
31
|
|
|
|
39
|
|
|
|
8
|
|
|
|
4
|
|
|
|
—
|
|
|
|
28
|
|
|
|
475
|
|
|
496
|
|
|
|
958
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Boddington
|
|
|
|
269
|
|
|
|
3
|
|
|
|
1
|
|
|
|
—
|
|
|
|
1
|
|
|
|
9
|
|
|
|
26
|
|
|
|
309
|
|
|
395
|
|
|
|
782
|
Tanami
|
|
|
|
108
|
|
|
|
1
|
|
|
|
1
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
24
|
|
|
|
134
|
|
|
174
|
|
|
|
770
|
Kalgoorlie
|
|
|
|
107
|
|
|
|
1
|
|
|
|
3
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
8
|
|
|
|
119
|
|
|
174
|
|
|
|
684
|
Other Australia
|
|
|
|
—
|
|
|
|
—
|
|
|
|
11
|
|
|
|
4
|
|
|
|
—
|
|
|
|
—
|
|
|
|
2
|
|
|
|
17
|
|
|
—
|
|
|
|
—
|
Australia
|
|
|
|
484
|
|
|
|
5
|
|
|
|
16
|
|
|
|
4
|
|
|
|
1
|
|
|
|
9
|
|
|
|
60
|
|
|
|
579
|
|
|
743
|
|
|
|
779
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ahafo
|
|
|
|
136
|
|
|
|
3
|
|
|
|
11
|
|
|
|
—
|
|
|
|
2
|
|
|
|
—
|
|
|
|
19
|
|
|
|
171
|
|
|
183
|
|
|
|
934
|
Akyem
|
|
|
|
135
|
|
|
|
6
|
|
|
|
1
|
|
|
|
—
|
|
|
|
1
|
|
|
|
—
|
|
|
|
10
|
|
|
|
153
|
|
|
258
|
|
|
|
593
|
Other Africa
|
|
|
|
—
|
|
|
|
—
|
|
|
|
12
|
|
|
|
5
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
17
|
|
|
—
|
|
|
|
—
|
Africa
|
|
|
|
271
|
|
|
|
9
|
|
|
|
24
|
|
|
|
5
|
|
|
|
3
|
|
|
|
—
|
|
|
|
29
|
|
|
|
341
|
|
|
441
|
|
|
|
773
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate and Other
|
|
|
|
—
|
|
|
|
—
|
|
|
|
26
|
|
|
|
93
|
|
|
|
4
|
|
|
|
—
|
|
|
|
3
|
|
|
|
126
|
|
|
—
|
|
|
|
—
|
Total Gold
|
|
|
$
|
1,873
|
|
|
$
|
56
|
|
|
$
|
145
|
|
|
$
|
113
|
|
|
$
|
15
|
|
|
$
|
15
|
|
|
$
|
249
|
|
|
$
|
2,466
|
|
|
2,767
|
|
|
$
|
891
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Copper
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Phoenix
|
|
|
$
|
34
|
|
|
$
|
1
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1
|
|
|
$
|
5
|
|
|
$
|
41
|
|
|
20
|
|
|
$
|
2.05
|
Boddington
|
|
|
|
49
|
|
|
|
1
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
6
|
|
|
|
3
|
|
|
|
59
|
|
|
38
|
|
|
|
1.55
|
Total Copper
|
|
|
$
|
83
|
|
|
$
|
2
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
7
|
|
|
$
|
8
|
|
|
$
|
100
|
|
|
58
|
|
|
$
|
1.72
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
|
|
|
$
|
1,956
|
|
|
$
|
58
|
|
|
$
|
145
|
|
|
$
|
113
|
|
|
$
|
15
|
|
|
$
|
22
|
|
|
$
|
257
|
|
|
$
|
2,566
|
|
|
|
|
|
|
|
(1)
|
|
Excludes Depreciation and amortization and Reclamation
and remediation.
|
(2)
|
|
Includes by-product credits of $29 and excludes co-product revenues
of $147.
|
(3)
|
|
Includes stockpile and leach pad inventory adjustments of $27 at
Carlin, $11 at Twin Creeks, $30 at Yanacocha, $13 at Ahafo and $5 at
Akyem.
|
(4)
|
|
Reclamation costs include operating accretion and amortization of
asset retirement costs of $40 and $18, respectively, and exclude
non-operating accretion and reclamation and remediation adjustments
of $10 and $22, respectively.
|
(5)
|
|
Advanced projects, research and development and Exploration
of $10 at Long Canyon, $5 at Yanacocha, $8 at Tanami, $5 at Ahafo
and $5 at Akyem are recorded in “Other” of the respective region
for development projects.
|
(6)
|
|
Other expense, net is adjusted for restructuring and other
costs of $8, acquisition cost adjustments of $5 and impairment of
long-lived assets of $3.
|
(7)
|
|
Excludes development capital expenditures, capitalized interest
and changes in accrued capital, totaling $106. The following are
major development projects: Merian, Long Canyon, Tanami
expansions, Subika underground and Ahafo mill expansion.
|
(8)
|
|
Per ounce and per pound measures may not recalculate due to rounding.
|
|
|
|
Similar to the historical AISC amounts presented above, AISC outlook is
also a non-GAAP financial measure. A reconciliation of the 2018 Gold
AISC outlook range to the 2018 CAS outlook range is provided below. The
estimates in the table below are considered “forward-looking statements”
within the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended, which are intended to be covered by the safe harbor created by
such sections and other applicable laws.
Non-GAAP to GAAP Reconciliation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2018 Outlook - Gold
|
|
|
|
Outlook range
|
|
|
|
|
Low
|
|
|
|
High
|
Costs Applicable to Sales 1,2
|
|
|
$
|
3,700
|
|
|
$
|
4,250
|
Reclamation Costs 3
|
|
|
|
130
|
|
|
|
150
|
Advance Projects and Exploration
|
|
|
|
350
|
|
|
|
400
|
General and Administrative
|
|
|
|
225
|
|
|
|
250
|
Other Expense
|
|
|
|
5
|
|
|
|
30
|
Treatment and Refining Costs
|
|
|
|
20
|
|
|
|
40
|
Sustaining Capital 4
|
|
|
|
600
|
|
|
|
700
|
All-in Sustaining Costs
|
|
|
$
|
5,100
|
|
|
$
|
5,800
|
Ounces (000) Sold
|
|
|
|
5,300
|
|
|
|
5,800
|
All-in Sustaining Costs per Oz
|
|
|
$
|
965
|
|
|
$
|
1,025
|
(1)
|
|
Excludes Depreciation and amortization and Reclamation
and remediation.
|
(2)
|
|
Includes stockpile and leach pad inventory adjustments.
|
(3)
|
|
Reclamation costs include operating accretion and amortization of
asset retirement costs.
|
(4)
|
|
Excludes development capital expenditures, capitalized interest and
change in accrued capital.
|
(5)
|
|
The reconciliation above is provided for illustrative purposes in
order to better describe management’s estimates of the components of
the calculation. Ranges 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 2018 AISC Gold Outlook on a consolidated
basis, a reconciliation has not been provided on an individual
site-by-site basis or for longer-term outlook in reliance on Item
10(e)(1)(i)(B) of Regulation S-K because such reconciliation is not
available without unreasonable efforts. See the Cautionary Statement
at the end of this news release for additional information.
|
|
|
|
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 and
copper sales by the consolidated gold ounces or copper 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
|
|
|
Six Months Ended
|
|
|
|
June 30,
|
|
|
June 30,
|
|
|
|
2018
|
|
|
2017
|
|
|
2018
|
|
|
2017
|
Sales
|
|
|
$
|
1,662
|
|
|
|
$
|
1,875
|
|
|
|
$
|
3,479
|
|
|
|
$
|
3,565
|
|
Consolidated copper sales, net
|
|
|
|
(81
|
)
|
|
|
|
(76
|
)
|
|
|
|
(159
|
)
|
|
|
|
(147
|
)
|
Consolidated gold sales, net
|
|
|
$
|
1,581
|
|
|
|
$
|
1,799
|
|
|
|
$
|
3,320
|
|
|
|
$
|
3,418
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated gold sales:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross before provisional pricing
|
|
|
$
|
1,595
|
|
|
|
$
|
1,808
|
|
|
|
$
|
3,339
|
|
|
|
$
|
3,426
|
|
Provisional pricing mark-to-market
|
|
|
|
(7
|
)
|
|
|
|
(1
|
)
|
|
|
|
(5
|
)
|
|
|
|
7
|
|
Gross after provisional pricing
|
|
|
|
1,588
|
|
|
|
|
1,807
|
|
|
|
|
3,334
|
|
|
|
|
3,433
|
|
Treatment and refining charges
|
|
|
|
(7
|
)
|
|
|
|
(8
|
)
|
|
|
|
(14
|
)
|
|
|
|
(15
|
)
|
Net
|
|
|
$
|
1,581
|
|
|
|
$
|
1,799
|
|
|
|
$
|
3,320
|
|
|
|
$
|
3,418
|
|
Consolidated gold ounces sold (thousands)
|
|
|
|
1,224
|
|
|
|
|
1,439
|
|
|
|
|
2,536
|
|
|
|
|
2,767
|
|
Average realized gold price (per ounce):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross before provisional pricing
|
|
|
$
|
1,304
|
|
|
|
$
|
1,256
|
|
|
|
$
|
1,317
|
|
|
|
$
|
1,238
|
|
Provisional pricing mark-to-market
|
|
|
|
(6
|
)
|
|
|
|
—
|
|
|
|
|
(2
|
)
|
|
|
|
3
|
|
Gross after provisional pricing
|
|
|
|
1,298
|
|
|
|
|
1,256
|
|
|
|
|
1,315
|
|
|
|
|
1,241
|
|
Treatment and refining charges
|
|
|
|
(6
|
)
|
|
|
|
(6
|
)
|
|
|
|
(5
|
)
|
|
|
|
(6
|
)
|
Net
|
|
|
$
|
1,292
|
|
|
|
$
|
1,250
|
|
|
|
$
|
1,310
|
|
|
|
$
|
1,235
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Six Months Ended
|
|
|
|
June 30,
|
|
|
June 30,
|
|
|
|
2018
|
|
|
2017
|
|
|
2018
|
|
|
2017
|
Sales
|
|
|
$
|
1,662
|
|
|
|
$
|
1,875
|
|
|
|
$
|
3,479
|
|
|
|
$
|
3,565
|
|
Consolidated gold sales, net
|
|
|
|
(1,581
|
)
|
|
|
|
(1,799
|
)
|
|
|
|
(3,320
|
)
|
|
|
|
(3,418
|
)
|
Consolidated copper sales, net
|
|
|
$
|
81
|
|
|
|
$
|
76
|
|
|
|
$
|
159
|
|
|
|
$
|
147
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated copper sales:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross before provisional pricing
|
|
|
$
|
83
|
|
|
|
$
|
81
|
|
|
|
$
|
168
|
|
|
|
$
|
151
|
|
Provisional pricing mark-to-market
|
|
|
|
1
|
|
|
|
|
(1
|
)
|
|
|
|
(3
|
)
|
|
|
|
3
|
|
Gross after provisional pricing
|
|
|
|
84
|
|
|
|
|
80
|
|
|
|
|
165
|
|
|
|
|
154
|
|
Treatment and refining charges
|
|
|
|
(3
|
)
|
|
|
|
(4
|
)
|
|
|
|
(6
|
)
|
|
|
|
(7
|
)
|
Net
|
|
|
$
|
81
|
|
|
|
$
|
76
|
|
|
|
$
|
159
|
|
|
|
$
|
147
|
|
Consolidated copper pounds sold (millions)
|
|
|
|
27
|
|
|
|
|
32
|
|
|
|
|
54
|
|
|
|
|
58
|
|
Average realized copper price (per pound):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross before provisional pricing
|
|
|
$
|
3.09
|
|
|
|
$
|
2.60
|
|
|
|
$
|
3.11
|
|
|
|
$
|
2.62
|
|
Provisional pricing mark-to-market
|
|
|
|
0.03
|
|
|
|
|
(0.02
|
)
|
|
|
|
(0.05
|
)
|
|
|
|
0.06
|
|
Gross after provisional pricing
|
|
|
|
3.12
|
|
|
|
|
2.58
|
|
|
|
|
3.06
|
|
|
|
|
2.68
|
|
Treatment and refining charges
|
|
|
|
(0.13
|
)
|
|
|
|
(0.12
|
)
|
|
|
|
(0.13
|
)
|
|
|
|
(0.12
|
)
|
Net
|
|
|
$
|
2.99
|
|
|
|
$
|
2.46
|
|
|
|
$
|
2.93
|
|
|
|
$
|
2.56
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gold By-Product Metrics
Copper is a by-product often obtained during the process of extracting
and processing the primary ore-body. In our GAAP Condensed Consolidated
Financial Statements, the value of these by-products is recorded as a
credit to our CAS and the value of the primary ore is recorded as Sales.
In certain instances, copper is a co-product, or significant resource in
the primary ore-body, and the revenue is recorded as Sales in our GAAP
Condensed Consolidated Financial Statements.
Gold By-Product Metrics are non-GAAP financial measures that serve as a
basis for comparing the Company’s performance with certain competitors.
As Newmont’s operations are primarily focused on gold production, “Gold
By-Product Metrics” were developed to allow investors to view Sales, CAS
per ounce and AISC per ounce calculations that classify all copper
production as a by-product, even when copper is the primary ore-body.
These metrics are calculated by subtracting copper 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
|
|
|
Six Months Ended
|
|
|
|
June 30,
|
|
|
June 30,
|
|
|
|
2018
|
|
|
|
2017
|
|
|
2018
|
|
|
2017
|
Consolidated gold sales, net
|
|
|
$
|
1,581
|
|
|
|
$
|
1,799
|
|
|
|
$
|
3,320
|
|
|
|
$
|
3,418
|
|
Consolidated copper sales, net
|
|
|
|
81
|
|
|
|
|
76
|
|
|
|
|
159
|
|
|
|
|
147
|
|
Sales
|
|
|
$
|
1,662
|
|
|
|
$
|
1,875
|
|
|
|
$
|
3,479
|
|
|
|
$
|
3,565
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs applicable to sales
|
|
|
$
|
965
|
|
|
|
$
|
999
|
|
|
|
$
|
1,994
|
|
|
|
$
|
1,956
|
|
Less: Consolidated copper sales, net
|
|
|
|
(81
|
)
|
|
|
|
(76
|
)
|
|
|
|
(159
|
)
|
|
|
|
(147
|
)
|
By-Product costs applicable to sales
|
|
|
$
|
884
|
|
|
|
$
|
923
|
|
|
|
$
|
1,835
|
|
|
|
$
|
1,809
|
|
Gold sold (thousand ounces)
|
|
|
|
1,224
|
|
|
|
|
1,439
|
|
|
|
|
2,536
|
|
|
|
|
2,767
|
|
Total Gold CAS per ounce (by-product)
|
|
|
$
|
722
|
|
|
|
$
|
641
|
|
|
|
$
|
724
|
|
|
|
$
|
654
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total AISC
|
|
|
$
|
1,308
|
|
|
|
$
|
1,325
|
|
|
|
$
|
2,641
|
|
|
|
$
|
2,566
|
|
Less: Consolidated copper sales, net
|
|
|
|
(81
|
)
|
|
|
|
(76
|
)
|
|
|
|
(159
|
)
|
|
|
|
(147
|
)
|
By-Product AISC
|
|
|
$
|
1,227
|
|
|
|
$
|
1,249
|
|
|
|
$
|
2,482
|
|
|
|
$
|
2,419
|
|
Gold sold (thousand ounces)
|
|
|
|
1,224
|
|
|
|
|
1,439
|
|
|
|
|
2,536
|
|
|
|
|
2,767
|
|
Total Gold AISC per ounce (by-product)
|
|
|
$
|
1,002
|
|
|
|
$
|
868
|
|
|
|
$
|
979
|
|
|
|
$
|
874
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Conference Call Information
A conference call will be held on Thursday, July 26, 2018 at 10:00
a.m. Eastern Time (8:00 a.m. Mountain Time); it will also be carried
on the Company’s website.
Conference Call Details
|
|
|
Dial-In Number
|
|
|
855.209.8210
|
|
|
|
Intl Dial-In Number
|
|
|
412.317.5213
|
|
|
|
Conference Name
|
|
|
Newmont Mining
|
|
|
|
Replay Number
|
|
|
877.344.7529
|
|
|
|
Intl Replay Number
|
|
|
412.317.0088
|
|
|
|
Replay Access Code
|
|
|
10121137
|
|
|
|
|
|
|
|
Webcast Details
Title: Newmont Mining Q2 2018 Earnings Conference Call URL: https://event.on24.com/wcc/r/1772166/BC41C73373E97A14EB190F8DFF188A43
The second quarter 2018 results will be available before the market
opens on Thursday, July 26, 2018 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 a leading gold and copper producer. The Company’s operations
are primarily in the United States, Australia, Ghana, Peru and Suriname.
Newmont is the only gold producer listed in the S&P 500 Index and was
named the mining industry leader by the Dow Jones Sustainability World
Index in 2015, 2016 and 2017. The Company is an industry leader in value
creation, supported by its leading technical, environmental, social and
safety performance. 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. Forward-looking statements often address our
expected future business and financial performance and financial
condition, and often contain words such as "expect," "anticipate,"
"intend," "plan," "believe," "will," "would," “estimate,” “expect,”
“forecast,” "target," “preliminary,” or “range.” Forward-looking
statements in this news release may include, without limitation: (i)
estimates of future production and sales; (ii) estimates of future costs
applicable to sales and all-in sustaining costs; (iii) estimates of
future capital expenditures; (iv) estimates of future cost reductions
and efficiencies; (v) expectations regarding the development, growth and
potential of the Company’s operations, projects and investment,
including, without limitation, returns, IRR, schedule, decision dates,
mine life, commercial start, first production, capital average
production, average costs and upside potential; (vi) expectations
regarding future mineralization, including, without limitation,
expectations regarding reserves and resources, grade and recoveries;
(vii) expectations regarding the purchase of the ownership stake in
Galore Creek and future development of the project; (viii) expectations
regarding future free cash flow generation, liquidity and balance sheet
strength; (iv) estimates of future closure costs and liabilities; and
(x) expectations of future dividends and returns to shareholders.
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
the Company’s operations and projects being consistent with current
expectations and mine plans, including without limitation receipt of
export approvals; (iii) political developments in any jurisdiction in
which the Company operates being consistent with its current
expectations; (iv) certain exchange rate assumptions for the Australian
dollar to the U.S. dollar, as well as other the exchange rates being
approximately consistent with current levels; (v) certain price
assumptions for gold, copper and oil; (vi) prices for key supplies being
approximately consistent with current levels; (vii) the accuracy of our
current mineral reserve and mineralized material estimates; and (viii)
other assumptions noted herein. Where the Company 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”. Other risks relating to forward
looking statements in regard to the Company’s business and future
performance may include, but are not limited to, gold and other metals
price volatility, currency fluctuations, operational risks, increased
production costs and variances in ore grade or recovery rates from those
assumed in mining plans, political risk, community relations, conflict
resolution governmental regulation and judicial outcomes and other
risks. For a more detailed discussion of such risks and other factors,
see the Company’s 2017 Annual Report on Form 10-K, filed with the
Securities and Exchange Commission (SEC) as well as the Company’s other
SEC filings. 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.
Investors are reminded that this news release should be read in
conjunction with Newmont’s Quarterly Report on Form 10-Q, filed on July
26, 2018, available on the SEC website and www.newmont.com.
View source version on businesswire.com: https://www.businesswire.com/news/home/20180726005179/en/ Copyright Business Wire 2018
Source: Business Wire
(July 26, 2018 - 6:55 AM EDT)
News by QuoteMedia
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|