Newmont Announces Third Quarter 2018 Results
October 25, 2018
DENVER–(BUSINESS WIRE)–Newmont Mining Corporation (NYSE: NEM) (Newmont or the Company)
announced third quarter 2018 results.
-
Net income (loss): Delivered GAAP net income (loss) from
continuing operations attributable to stockholders of $(161) million
or $(0.31) per diluted share; delivered adjusted net income1
of $175 million or $0.33 per diluted share, down $0.01 compared
to the prior year quarter -
EBITDA: Generated $636 million in adjusted EBITDA2,
down $20 million from the prior year quarter -
Cash flow: Reported consolidated cash flow from continuing
operations of $428 million and free cash flow3 of $154
million -
Gold costs applicable to sales (CAS)4: Reported
CAS of $691 per ounce, lower than the Company’s full year guidance -
Gold all-in sustaining costs (AISC)5: Reported
AISC of $927 per ounce, lower than the Company’s full year guidance -
Attributable gold production: Produced 1.29 million
ounces of gold, in line with the Company’s full year guidance -
Portfolio improvements: Completed the CC&V concentrates project
in North America; commissioned the primary crusher at Merian in South
America; advanced the Tanami Expansion 2 project to definitive
feasibility study in Australia; formed a strategic partnership with
Evrim Resources in the Cuale gold project in Mexico; expanded regional
exploration activities with an investment in Orosur Mining and an
opportunity to participate in Miranda Gold’s Lyra project in Colombia -
Financial strength: Ended the quarter with $3.1 billion cash on
hand and net debt of $1.1 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: Improved 2018 corporate-level AISC per ounce and
narrowed production outlook
“Newmont delivered $636 million in adjusted EBITDA and $154 million in
free cash flow in the third quarter on the back of ongoing productivity
improvements across the portfolio and higher grades in Africa and South
America,” said Gary J. Goldberg, President and Chief Executive Officer.
“We continued to advance profitable projects as we completed the CC&V
concentrates project and commissioned the primary crusher at Merian,
safely, on budget and on schedule. And we increased investment in
Quecher Main, Subika Underground and the Ahafo Mill expansion during the
period while increasing our dividend for the third quarter by 87
percent.”
Third Quarter 2018 Summary Results
Net income (loss) from continuing operations attributable to
Newmont stockholders of $(161) million or $(0.31) per diluted share, a
decrease of $374 million from the prior year quarter primarily due to
the impairment of exploration and long-lived assets in North America and
lower metal prices, partially offset by lower income tax expense.
Adjusted net income was $175 million or $0.33 per diluted share,
compared to $184 million or $0.34 per diluted share in the prior
year quarter resulting from lower metal prices. Primary adjustments to
net income include $0.74 per diluted share related to impairments and a
write-down in North America, $(0.14) per diluted share related to net
tax adjustments and valuation allowances, and $0.04 per diluted share
related to the change in fair value of marketable equity securities and
a gain on asset and investment sales.
Revenue decreased eight percent to $1,726 million for the quarter
primarily due to lower average realized gold prices and lower production
at various sites.
Average realized price6 for gold was $1,201, a
reduction of $75 per ounce over the prior year quarter; average realized
price for copper was $2.50 per pound, a reduction of $0.56 over the
prior year quarter.
Attributable gold production decreased four percent to 1.29
million ounces primarily due to lower mill throughput at Carlin, lower
leach production at CC&V, and lower grades at KCGM. These impacts were
partially offset by higher grades at Ahafo, Yanacocha and Tanami.
Gold CAS decreased four percent to $691 per ounce for the quarter
due to a lower co-product allocation of costs to gold based on a lower
relative gold sales value and a favorable Australian dollar foreign
currency exchange rate, partially offset by lower ounces sold.
Gold AISC decreased one percent to $927 per ounce for the quarter
as lower CAS was offset by higher sustaining capital spend.
Attributable copper production from Phoenix and Boddington was
12,000 tonnes for the quarter, in line with the prior year period. Copper
CAS increased 12 percent to $1.54 per pound for the quarter
primarily due to a higher co-product allocation of costs to copper. Copper
AISC increased 13 percent to $1.87 per pound for the quarter
primarily due to higher CAS.
Capital expenditures7 increased by 41 percent from the
prior year quarter to $274 million with increased investment in Quecher
Main, Subika Underground, and the Ahafo Mill expansion.
Consolidated operating cash flow from continuing operations decreased
12 percent from the prior year quarter to $428 million primarily due to
lower metal prices, coupled with unfavorable changes in working capital
which were partially offset by higher payments attributable to interest
in 2017 related to the repayment of convertible debt. Free cash flow
decreased 48 percent from the prior year quarter to $154 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
between $160 and $200 million with expenditure of between $100 and
$110 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 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 $90 to $95 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 the first
quarter of 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 between $225 and
$275 million with annual cash lease payments over a 10 year term
beginning in 2019 with approximately $6 million of owner’s costs in
2018. The project IRR is expected to be greater than 50 percent at
$0.75 AUD.
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1 |
Non-GAAP measure. See end of this release for reconciliation to |
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2 |
Non-GAAP measure. See end of this release for reconciliation to |
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3 |
Non-GAAP measure. See end of this release for reconciliation to |
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4 |
Non-GAAP measure. See end of this release for reconciliation to |
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5 |
Non-GAAP measure. See end of this release for reconciliation to |
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6 |
Non-GAAP measure. See end of this release for reconciliation to |
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7 |
Capital expenditures refers to Additions to property plant and |
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Outlook
Newmont’s outlook reflects stable gold production and ongoing investment
in its operating assets and most promising growth prospects. Longer term
guidance is expected to be updated on December 5, 2018.
Attributable gold production is lowered – Production guidance is
narrowed to between 4.9 and 5.2 million ounces in 2018.
-
North America production is reduced to between 1.9 and 2.1 million
ounces in 2018 due to lower production at Carlin’s surface mines. -
South America production remains between 615,000 and 675,000 ounces in
2018 supported by higher grades at Yanacocha and improving
productivity at Merian. -
Australia production remains between 1.4 and 1.6 million ounces in
2018 as improved grade and productivity at Tanami help to offset
geotechnical challenges at KCGM. -
Africa production remains between 815,000 and 875,000 ounces in 2018
supported by steady production at Ahafo and Akyem and Subika
Underground reaching commercial production in the fourth quarter of
2018.
Total gold cost outlook is improved – CAS in 2018 is unchanged
between $700 and $750 per ounce and AISC is narrowed to between $950 and
$990 per ounce in 2018.
-
North America CAS is now expected to be between $750 and $800 per
ounce driven by lower production at Carlin. AISC remains unchanged
between $920 and $995 per ounce in 2018. -
South America cost guidance remains unchanged. CAS remains between
$675 and $735 per ounce and AISC remains between $925 and $1,025 per
ounce in 2018. -
Australia cost guidance remains unchanged. CAS remains between $695
and $745 per ounce and AISC remains between $850 and $910 per ounce. -
Africa cost guidance improves with lower than expected inventory
adjustments at Akyem. Africa CAS is now expected to be between $650
and $690 per ounce with AISC of between $820 and $860 per ounce in
2018.
Copper – Attributable production remains unchanged between
40,000 and 60,000 tonnes in 2018. CAS remains unchanged between $1.65
and $1.85 per pound in 2018. AISC remains unchanged between $2.00 and
$2.20 per pound in 2018.
Capital – Total capital remains unchanged between $1,200 and
$1,300 million for 2018. 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 in Australia. Sustaining capital
remains unchanged between $600 and $700 million in 2018.
Consolidated expense outlook – Interest expense for 2018 remains
unchanged between $175 and $215 million and investment in exploration
and advanced projects remains unchanged between $350 and $400 million.
2018 outlook for general & administrative costs remains between $225 and
$250 million. Guidance for depreciation and amortization remains
unchanged 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 $65 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 $45 million
improvement in attributable free cash flow, respectively. These
estimates exclude current hedge programs; please refer to Newmont’s Form
10-Q which was filed with the SEC on October 25, 2018 for further
information on hedging positions.
| 2018 Outlooka | |||||||||||||||||||||||||
| Consolidated | |||||||||||||||||||||||||
| All-in | Consolidated | ||||||||||||||||||||||||
| Consolidated | Attributable | Consolidated | Sustaining | Total Capital | |||||||||||||||||||||
| Production | Production | CAS | Costsb | Expenditures | |||||||||||||||||||||
| (Koz, Kt) | (Koz, Kt) | ($/oz, $/lb) | ($/oz, $/lb) | ($M) | |||||||||||||||||||||
| North America | |||||||||||||||||||||||||
| Carlin | 880 | – | 960 | 880 | – | 960 | 835 | – | 885 | 1,000 | – | 1,060 | 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 | 1,950 | – | 2,080 | 1,950 | – | 2,080 | 750 | – | 800 | 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 | 770 | – | 820 | 880 | – | 930 | 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 | 535 | – | 575 | 690 | – | 740 | 30 | – | 40 | ||||||||||
| Other Africa | |||||||||||||||||||||||||
| Total | 815 | – | 875 | 815 | – | 875 | 650 | – | 690 | 820 | – | 860 | 225 | – | 275 | ||||||||||
| Corporate/Other | 10 | – | 15 | ||||||||||||||||||||||
| Total Goldg | 5,300 | – | 5,600 | 4,900 | – | 5,200 | 700 | – | 750 | 950 | – | 990 | 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% | ||||||||
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a |
2018 Outlook in the table above are considered “forward-looking |
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b |
All-in sustaining costs or AISC as used in the Company’s |
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c |
Includes Lone Tree operations. |
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d |
Includes TRJV operations shown on a pro-rata basis with a 25% |
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e |
Consolidated production for Yanacocha and Merian is presented |
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f |
Both consolidated and attributable production are shown on a |
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g |
Production outlook does not include equity production from |
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h |
Consolidated expense outlook is adjusted to exclude |
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i |
Includes $225-$275M for a capital lease related to the Tanami |
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j |
Assuming average prices of $1,300 per ounce for gold and $2.70 |
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| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| Operating Results | 2018 | 2017 |
% Change |
2018 | 2017 |
% Change |
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| Attributable Sales (koz, kt) | |||||||||||||||||||||||
| Attributable gold ounces sold | 1,270 | 1,313 | (3 | )% | 3,648 | 3,892 | (6 | )% | |||||||||||||||
| Attributable copper tonnes sold | 12 | 12 |
— |
% | 37 | 38 | (3 | )% | |||||||||||||||
| Average Realized Price ($/oz, $/lb) | |||||||||||||||||||||||
| Average realized gold price | $ | 1,201 | $ | 1,276 | (6 | )% | $ | 1,271 | $ | 1,249 | 2 | % | |||||||||||
| Average realized copper price | $ | 2.50 | $ | 3.06 | (18 | )% | $ | 2.79 | $ | 2.71 | 3 | % | |||||||||||
| Attributable Production (koz, kt) | |||||||||||||||||||||||
| North America | 511 | 573 | (11 | )% | 1,431 | 1,655 | (14 | )% | |||||||||||||||
| South America | 178 | 169 | 5 | % | 463 | 472 | (2 | )% | |||||||||||||||
| Australia | 385 | 406 | (5 | )% | 1,142 | 1,167 | (2 | )% | |||||||||||||||
| Africa | 212 | 191 | 11 | % | 621 | 631 | (2 | )% | |||||||||||||||
| Total Gold | 1,286 | 1,339 | (4 | )% | 3,657 | 3,925 | (7 | )% | |||||||||||||||
| North America | 3 | 3 |
— |
% | 10 | 12 | (17 | )% | |||||||||||||||
| Australia | 9 | 9 | — | % | 28 | 28 |
— |
% | |||||||||||||||
| Total Copper | 12 | 12 | — | % | 38 | 40 | (5 | )% | |||||||||||||||
| CAS Consolidated ($/oz, $/lb) | |||||||||||||||||||||||
| North America | $ | 803 | $ | 742 | 8 | % | $ | 789 | $ | 710 | 11 | % | |||||||||||
| South America | $ | 636 | $ | 806 | (21 | )% | $ | 704 | $ | 760 | (7 | )% | |||||||||||
| Australia | $ | 691 | $ | 670 | 3 | % | $ | 703 | $ | 658 | 7 | % | |||||||||||
| Africa | $ | 505 | $ | 646 | (22 | )% | $ | 670 | $ | 624 | 7 | % | |||||||||||
| Total Gold | $ | 691 | $ | 721 | (4 | )% | $ | 729 | $ | 692 | 5 | % | |||||||||||
| Total Gold (by-product) | $ | 671 | $ | 690 | (3 | )% | $ | 705 | $ | 666 | 6 | % | |||||||||||
| North America | $ | 1.86 | $ | 1.57 | 18 | % | $ | 1.91 | $ | 1.67 | 14 | % | |||||||||||
| Australia | $ | 1.46 | $ | 1.32 | 11 | % | $ | 1.57 | $ | 1.30 | 21 | % | |||||||||||
| Total Copper | $ | 1.54 | $ | 1.38 | 12 | % | $ | 1.66 | $ | 1.42 | 17 | % | |||||||||||
| AISC Consolidated ($/oz, $/lb) | |||||||||||||||||||||||
| North America | $ | 998 | $ | 912 | 9 | % | $ | 997 | $ | 884 | 13 | % | |||||||||||
| South America | $ | 879 | $ | 1,049 | (16 | )% | $ | 953 | $ | 989 | (4 | )% | |||||||||||
| Australia | $ | 819 | $ | 821 |
— |
% | $ | 841 | $ | 794 | 6 | % | |||||||||||
| Africa | $ | 713 | $ | 802 | (11 | )% | $ | 852 | $ | 782 | 9 | % | |||||||||||
| Total Gold | $ | 927 | $ | 941 | (1 | )% | $ | 973 | $ | 908 | 7 | % | |||||||||||
| Total Gold (by-product) | $ | 915 | $ | 915 |
— |
% | $ | 956 | $ | 888 | 8 | % | |||||||||||
| North America | $ | 2.41 | $ | 1.71 | 41 | % | $ | 2.37 | $ | 1.96 | 21 | % | |||||||||||
| Australia | $ | 1.73 | $ | 1.63 | 6 | % | $ | 1.87 | $ | 1.58 | 18 | % | |||||||||||
| Total Copper | $ | 1.87 | $ | 1.65 | 13 | % | $ | 2.00 | $ | 1.70 | 18 | % | |||||||||||
| NEWMONT MINING CORPORATION | ||||||||||||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||||||
| (unaudited, in millions except per share) | ||||||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||||||
| September 30, | September 30, | |||||||||||||||||||
| 2018 | 2017 | 2018 | 2017 | |||||||||||||||||
| Sales | $ | 1,726 | $ | 1,879 | $ | 5,205 | $ | 5,444 | ||||||||||||
| Costs and expenses | ||||||||||||||||||||
| Costs applicable to sales (1) | 995 | 1,053 | 2,989 | 3,009 | ||||||||||||||||
| Depreciation and amortization | 299 | 328 | 879 | 938 | ||||||||||||||||
| Reclamation and remediation | 31 | 26 | 96 | 98 | ||||||||||||||||
| Exploration | 48 | 48 | 142 | 135 | ||||||||||||||||
| Advanced projects, research and development | 37 | 41 | 107 | 99 | ||||||||||||||||
| General and administrative | 59 | 58 | 181 | 171 | ||||||||||||||||
| Impairment of long-lived assets | 366 | — | 366 | 3 | ||||||||||||||||
| Other expense, net | 5 | 1 | 29 | 29 | ||||||||||||||||
| 1,840 | 1,555 | 4,789 | 4,482 | |||||||||||||||||
| Other income (expense) | ||||||||||||||||||||
| Other income, net | 37 | 10 | 197 | 32 | ||||||||||||||||
| Interest expense, net of capitalized interest | (51 | ) | (56 | ) | (153 | ) | (187 | ) | ||||||||||||
| (14 | ) | (46 | ) | 44 | (155 | ) | ||||||||||||||
| Income (loss) before income and mining tax and other items | (128 | ) | 278 | 460 | 807 | |||||||||||||||
| Income and mining tax benefit (expense) | (3 | ) | (73 | ) | (126 | ) | (350 | ) | ||||||||||||
| Equity income (loss) of affiliates | (9 | ) | 1 | (25 | ) | (4 | ) | |||||||||||||
| Income (loss) from continuing operations | (140 | ) | 206 | 309 | 453 | |||||||||||||||
| Income (loss) from discontinued operations | 16 | (7 | ) | 56 | (45 | ) | ||||||||||||||
| Net income (loss) | (124 | ) | 199 | 365 | 408 | |||||||||||||||
| Net loss (income) attributable to noncontrolling interests | (21 | ) | 7 | (26 | ) | 20 | ||||||||||||||
| Net income (loss) attributable to Newmont stockholders | $ | (145 | ) | $ | 206 | $ | 339 | $ | 428 | |||||||||||
| Net income (loss) attributable to Newmont stockholders: | ||||||||||||||||||||
| Continuing operations | $ | (161 | ) | $ | 213 | $ | 283 | $ | 473 | |||||||||||
| Discontinued operations | 16 | (7 | ) | 56 | (45 | ) | ||||||||||||||
| $ | (145 | ) | $ | 206 | $ | 339 | $ | 428 | ||||||||||||
| Income (loss) per common share | ||||||||||||||||||||
| Basic: | ||||||||||||||||||||
| Continuing operations | $ | (0.31 | ) | $ | 0.39 | $ | 0.53 | $ | 0.88 | |||||||||||
| Discontinued operations | 0.04 | (0.01 | ) | 0.11 | (0.08 | ) | ||||||||||||||
| $ | (0.27 | ) | $ | 0.38 | $ | 0.64 | $ | 0.80 | ||||||||||||
| Diluted: | ||||||||||||||||||||
| Continuing operations | $ | (0.31 | ) | $ | 0.39 | $ | 0.53 | $ | 0.88 | |||||||||||
| Discontinued operations | 0.04 | (0.01 | ) | 0.10 | (0.08 | ) | ||||||||||||||
| $ | (0.27 | ) | $ | 0.38 | $ | 0.63 | $ | 0.80 | ||||||||||||
| Cash dividends declared per common share | $ | 0.14 | $ | 0.075 | $ | 0.42 | $ | 0.175 | ||||||||||||
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(1) Excludes Depreciation and amortization |
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| NEWMONT MINING CORPORATION | ||||||||||||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||||||||||||
| (unaudited, in millions) | ||||||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||||||
| September 30, | September 30, | |||||||||||||||||||
| 2018 | 2017 | 2018 | 2017 | |||||||||||||||||
| Operating activities: | ||||||||||||||||||||
| Net income (loss) | $ | (124 | ) | $ | 199 | $ | 365 | $ | 408 | |||||||||||
| Adjustments: | ||||||||||||||||||||
| Depreciation and amortization | 299 | 328 | 879 | 938 | ||||||||||||||||
| Stock-based compensation | 19 | 18 | 57 | 53 | ||||||||||||||||
| Reclamation and remediation | 24 | 24 | 85 | 92 | ||||||||||||||||
| Loss (income) from discontinued operations | (16 | ) | 7 | (56 | ) | 45 | ||||||||||||||
| Deferred income taxes | (81 | ) | 21 | (100 | ) | 97 | ||||||||||||||
| Impairment of long-lived assets | 366 | — | 366 | 3 | ||||||||||||||||
| Gain on asset and investment sales, net | (1 | ) | (5 | ) | (100 | ) | (21 | ) | ||||||||||||
| Write-downs of inventory and stockpiles and ore on leach pads | 62 | 66 | 220 | 158 | ||||||||||||||||
| Other operating adjustments | 37 | 16 | 46 | 71 | ||||||||||||||||
| Net change in operating assets and liabilities | (157 | ) | (185 | ) | (667 | ) | (453 | ) | ||||||||||||
|
Net cash provided by (used in) operating activities of continuing operations |
428 | 489 | 1,095 | 1,391 | ||||||||||||||||
|
Net cash provided by (used in) operating activities of discontinued operations (1) |
(3 | ) | (3 | ) | (8 | ) | (12 | ) | ||||||||||||
| Net cash provided by (used in) operating activities | 425 | 486 | 1,087 | 1,379 | ||||||||||||||||
| Investing activities: | ||||||||||||||||||||
| Additions to property, plant and mine development | (274 | ) | (194 | ) | (763 | ) | (557 | ) | ||||||||||||
| Acquisitions, net | (99 | ) | — | (138 | ) | — | ||||||||||||||
| Proceeds from sales of other assets | 18 | 1 | 23 | 5 | ||||||||||||||||
| Purchases of investments | (11 | ) | — | (17 | ) | (113 | ) | |||||||||||||
| Proceeds from sales of investments | 1 | 15 | 16 | 34 | ||||||||||||||||
| Other | (2 | ) | — | (5 | ) | 13 | ||||||||||||||
| Net cash provided by (used in) investing activities | (367 | ) | (178 | ) | (884 | ) | (618 | ) | ||||||||||||
| Financing activities: | ||||||||||||||||||||
| Dividends paid to common stockholders | (76 | ) | (40 | ) | (226 | ) | (94 | ) | ||||||||||||
| Distributions to noncontrolling interests | (38 | ) | (39 | ) | (107 | ) | (119 | ) | ||||||||||||
| Repurchase of common stock | (26 | ) | — | (96 | ) | — | ||||||||||||||
| Funding from noncontrolling interests | 25 | 24 | 77 | 70 | ||||||||||||||||
| Proceeds from sale of noncontrolling interests | — | — | 48 | — | ||||||||||||||||
|
Payments for withholding of employee taxes related to stock-based compensation |
— | — | (39 | ) | (13 | ) | ||||||||||||||
| Repayment of debt | — | (380 | ) | (3 | ) | (383 | ) | |||||||||||||
| Other | — | — | — | (3 | ) | |||||||||||||||
| Net cash provided by (used in) financing activities | (115 | ) | (435 | ) | (346 | ) | (542 | ) | ||||||||||||
|
Effect of exchange rate changes on cash, cash equivalents and restricted cash |
(2 | ) | 1 | (4 | ) | 3 | ||||||||||||||
| Net change in cash, cash equivalents and restricted cash | (59 | ) | (126 | ) | (147 | ) | 222 | |||||||||||||
| Cash, cash equivalents and restricted cash at beginning of period | 3,210 | 3,130 | 3,298 | 2,782 | ||||||||||||||||
| Cash, cash equivalents and restricted cash at end of period | $ | 3,151 | $ | 3,004 | $ | 3,151 | $ | 3,004 | ||||||||||||
| Reconciliation of cash, cash equivalents and restricted cash: | ||||||||||||||||||||
| Cash and cash equivalents | $ | 3,068 | $ | 2,969 | $ | 3,068 | $ | 2,969 | ||||||||||||
| Restricted cash included in Other current assets | 1 | — | 1 | — | ||||||||||||||||
| Restricted cash included in Other noncurrent assets | 82 | 35 | 82 | 35 | ||||||||||||||||
| Total cash, cash equivalents and restricted cash | $ | 3,151 | $ | 3,004 | $ | 3,151 | $ | 3,004 | ||||||||||||
Contacts
Newmont Mining Corporation
Investor
Contacts
Jessica Largent, 303-837-5484
jessica.largent@newmont.com
or
Media
Contacts
Omar Jabara, 303-837-5114
omar.jabara@newmont.com

