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Newmont Delivers Strong Full-Year and Fourth Quarter 2021 Results

Feb 24, 2022

Newmont meets updated full-year guidance with attributable production of 6.0 million gold ounces and 1.3 million gold equivalent ounces; returned $2.3 billion to shareholders in 2021

DENVER--(BUSINESS WIRE)-- Newmont Corporation (NYSE: NEM, TSX: NGT) (Newmont or the Company) today announced full year and fourth quarter 2021 results.

2021 HIGHLIGHTS

  • Produced 6.0 million attributable ounces of gold and 1.3 million attributable gold equivalent ounces of co-products; reported gold CAS* of $785 per ounce and gold AISC* of $1,062 per ounce; met updated full-year 2021 guidance
  • Generated $4.3 billion of cash from continuing operations and $2.6 billion of Free Cash Flow (99.8% attributable to Newmont)*
  • Advanced profitable near-term projects, including Tanami Expansion 2, Ahafo North and Yanacocha Sulfides; $1.4 billion of development capital spend expected in 2022
  • Delivered the gold industry's first Autonomous Haulage System (AHS) fleet at Boddington and formed an industry-leading strategic alliance with Caterpillar to achieve zero emissions mining and support reaching greenhouse gas (GHG) emissions reduction targets
  • Declared fourth quarter dividend of $0.55 per share for a total declared dividend for 2021 of $2.20 per share; returned $1.8 billion in 2021 through industry-leading dividend framework**
  • Completed $525 million of share repurchases from $1 billion buyback program; extended buyback program through 2022**
  • Ended the year with $5.0 billion of consolidated cash and $8.0 billion of liquidity with a net debt to adjusted EBITDA* ratio of 0.2x
  • Refinanced near-term debt with the industry's first $1 billion sustainability-linked bond; further aligning financing strategy with environmental, social and governance (ESG) commitments
  • Reported reserves of 93 million gold ounces and 65 million gold equivalent ounces, as well as resources of 101 million gold ounces and 104 million gold equivalent ounces***
  • Announced 2022 attributable production outlookof 6.2 million gold ounces, improving to between 6.2 and 6.8 million gold ounces annually longer-term through 2026****
  • Announced the acquisition of Buenaventura's 43.65% interest in Minera Yanacocha in February 2022; further enhancing world-class asset ownership with a consistent district consolidation strategy

"Newmont has maintained its position as the world's leading gold company with the strongest portfolio of operations and projects in top-tier jurisdictions. In 2021, Newmont generated more than $2.6 billion in free cash flow and $6.0 billion in adjusted EBITDA while advancing our most profitable near-term projects and returning a record $2.3 billion to shareholders. As we move into our next 100 years of sustainable and responsible mining, Newmont will continue to create long-term value for all of our stakeholders through our clear strategic focus, superior operational performance and unwavering commitment to leading ESG practices."

- Tom Palmer, President and Chief Executive Officer

___________________________

*Non-GAAP metrics; see end of this release for reconciliations.

**The dividend framework is non-binding, and an annualized dividend has not been declared by the Board. See cautionary statement at the end of this release, including with respect to dividends and share buybacks. Note that in February 2022, the Board authorized the extension of the term of the buyback program to December 31, 2022.

***See cautionary statement at the end of this release. Total resources presented includes Measured and Indicated resources of 68.3 million gold ounces and Inferred resources of 33.2 million gold ounces. Unless otherwise stated, reserves and resources reflect Newmont's ownership as of December 31, 2021. In February 2022, Newmont acquired Buenaventura's 43.65% interest in Minera Yanacocha, further strengthening 2021 reserve and resources balances with 2.7Moz gold reserves and 11.0Moz gold resources, and 2.7Moz GEO reserves and 7.7Moz GEO resources.

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

FULL YEAR AND FOURTH QUARTER 2021 FINANCIAL AND PRODUCTION SUMMARY
 

 

Q4'21

Q3'21

Q4'20

FY'21

FY'20

Average realized gold price ($ per ounce)

$

1,798

$

1,778

$

1,852

$

1,788

$

1,775

Attributable gold production (million ounces)

 

1.62

 

 

1.45

 

 

1.63

 

 

5.97

 

 

5.91

 

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

$

802

 

$

830

 

$

739

 

$

785

 

$

756

 

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

$

1,056

 

$

1,120

 

$

1,043

 

$

1,062

 

$

1,045

 

GAAP net income ($ millions)

$

(61

)

$

(8

)

$

806

 

$

1,109

 

$

2,666

 

Adjusted net income ($ millions)

$

624

 

$

483

 

$

856

 

$

2,371

 

$

2,140

 

Adjusted EBITDA ($ millions)

$

1,599

 

$

1,316

 

$

1,772

 

$

5,963

 

$

5,537

 

Cash flow from continuing operations ($ millions)

$

1,299

 

$

1,133

 

$

1,686

 

$

4,266

 

$

4,890

 

Capital expenditures ($ millions)

$

441

 

$

398

 

$

398

 

$

1,653

 

$

1,302

 

Free cash flow ($ millions)

$

858

 

$

735

 

$

1,288

 

$

2,613

 

$

3,588

 

Attributable gold production1 for the year increased 1 percent to 5,971 thousand ounces compared to the prior year primarily due to higher mill recovery, a draw-down of in-circuit inventory and higher throughput in the current year, as several mines were placed under care and maintenance or experienced reduced operations in the prior year in response to the Covid pandemic.

Attributable gold production for the fourth quarter remained flat at 1,618 thousand ounces compared to the prior year quarter.

Gold CAS increased 5 percent to $4.6 billion from the prior year. Gold CAS per ounce2 increased 4 percent to $785 per ounce primarily due to higher direct operating costs and contractor costs as a result of ongoing Covid impacts and higher third party royalties, partially offset by higher by-product credits at Yanacocha and Nevada Gold Mines.

Gold CAS increased 8 percent to $1.3 billion from the prior year quarter. Gold CAS per ounce increased 9 percent to $802 per ounce primarily due to higher direct operating costs, a draw-down of in-circuit inventory and lower by-product credits at Yanacocha, partially offset by lower third party royalties.

Gold AISC3 increased 2 percent to $1,062 per ounce compared to the prior year primarily due to higher CAS per ounce and higher sustaining capital spend, as several mines were placed under care and maintenance or experienced reduced operations in the prior year in response to the Covid pandemic.

Gold AISC remained flat at $1,056 per ounce compared to the prior year quarter as higher CAS per ounce was largely offset by lower sustaining capital spend.

Attributable gold equivalent ounce (GEO) production from other metals for the year increased 23 percent to 1,252 thousand ounces from the prior year primarily due to higher throughput and higher mill recovery in the current year, as Peñasquito was placed under temporary care and maintenance in the prior year in response to the Covid pandemic.

Attributable GEO production from other metals for the quarterincreased 17 percent to 317 thousand ounces from the prior year quarter primarily due to higher silver and zinc grades mined at Peñasquito and higher copper grade mined at Boddington.

CAS from other metals totaled $807 million for the year. CAS per GEO2 for the year increased 12 percent to $640 per ounce from the prior year primarily due to higher direct operating costs as Peñasquito was placed under temporary care and maintenance in the prior year, partially offset by higher co-product sales volumes. AISC per GEO3 for the year increased 5 percent to $900 per ounce from the prior year primarily due to higher CAS from other metals, partially offset by lower treatment and refining costs.

CAS from other metals totaled $243 million for the quarter. CAS per GEO for the quarter increased 32 percent to $739 per ounce from the prior year quarter primarily due to higher allocation of costs to co-product metals and a draw-down of inventory. AISC per GEO for the quarter increased 19 percent to $1,007 per ounce from the prior year quarter primarily due to higher CAS from other metals, partially offset by lower sustaining capital spend.

Net income from continuing operations attributable to Newmont stockholders for the year was $1.1 billion or $1.39 per diluted share, a decrease of $1.6 billion from the prior year primarily due to higher reclamation and remediation expense resulting from adjustments mainly related to non-operating Yanacocha sites of $1.6 billion, the loss recognized on the pending sale of the Conga mill assets, lower gain on asset and investment sales due to the sale of Kalgoorlie in the prior year and higher income tax expense. These decreases were partially offset by higher average realized metal prices and higher sales volumes, as well as lower care and maintenance expense from certain sites being placed into care and maintenance or experiencing reduced operations in response to the Covid pandemic in the prior year.

Net loss from continuing operations attributable to Newmont stockholders for the quarter was $(61) million or $(0.08) per diluted share, a decrease of $867 million from the prior year quarter primarily due to higher reclamation and remediation expense resulting from adjustments mainly related to non-operating Yanacocha sites of $1.6 billion, partially offset by the gain on the sale of the Kalgoorlie Power business and the gain from the NGM Lone Tree and South Arturo exchange transaction in the fourth quarter.

Adjusted net income4 for the year was $2.4 billion or $2.96 per diluted share, compared to $2.1 billion or $2.66 per diluted share in the prior year.

Adjusted net income for the quarter was $624 million or $0.78 per diluted share, compared to $856 million or $1.06 per diluted share in the prior year quarter. Primary adjustments to fourth quarter net income include reclamation and remediation adjustments mainly related to non-operating Yanacocha sites, gains on asset and investment sales, changes in the fair value of investments, and valuation allowance and other tax adjustments.

Adjusted EBITDA5 for the year increased 8 percent to $6.0 billion, compared to $5.5 billion for the prior year. Adjusted EBITDA for the quarter decreased 10 percent to $1.6 billion for the quarter, compared to $1.8 billion for the prior year quarter.

Revenue for the year increased 6 percent to $12.2 billion compared to the prior year primarily due to higher average realized gold prices and higher sales volumes. Revenue for the quarter of $3.4 billion increased slightly compared to the prior year quarter.

Average realized price6 for gold increased $13 per ounce to $1,788 per ounce for the full year and decreased $54 per ounce to $1,798 per ounce for the quarter, compared to the prior year. For the full year, average realized gold price includes $1,794 per ounce of gross price received, the favorable impact of $2 per ounce mark-to-market on provisionally-priced sales and $8 per ounce reductions for treatment and refining charges. For the quarter, average realized gold price includes $1,794 per ounce of gross price received, the favorable impact of $11 per ounce mark-to-market on provisionally-priced sales and $7 per ounce reductions for treatment and refining charges.

Capital expenditures7 increased 27 percent to $1.7 billion for the full year and increased 11 percent to $441 million for the quarter, compared to prior year, primarily due to higher sustaining capital spend at sites that were placed into care and maintenance or experiencing reduced operations in response to the Covid pandemic during 2020 and higher development capital spend. Development capital expenditures in 2021 primarily include advancing Tanami Expansion 2, Yanacocha Sulfides, Ahafo North, the Subika Mining Method Change, Cerro Negro expansion projects, the Power Generation Civil Upgrade, Pamour, Quecher Main, Goldrush Complex and Turquoise Ridge 3rd shaft.

Consolidated operating cash flow from continuing operations decreased 13 percent to $4.3 billion for the full year and decreased 23 percent to $1.3 billion for the quarter, compared to the prior year, primarily due to higher tax payments, partially offset by higher average realized metal prices. Free Cash Flow8decreased to $2.6 billion for the full year and $0.9 billion for the quarter, compared to the prior year, primarily due to lower operating cash flow and higher capital expenditures.

Balance sheet and liquidity remained strong in 2021 ending the year with $5.0 billion of consolidated cash and approximately $8.0 billion of liquidity; reported net debt to adjusted EBITDA of 0.2x9.

Portfolio improvements achieved during the year: Acquired the remaining 85.1% ownership of GT Gold Corporation; announced the acquisition of Buenaventura's 43.65% ownership of Yanacocha; approved full funding of the Ahafo North project in July 2021; implemented Autonomous Haulage System at Boddington and a mining method change at Subika Underground in Ghana; progressed the Tanami Expansion 2, Yanacocha Sulfides, Cerro Negro District Expansion 1 and Pamour projects.

Nevada Gold Mines (NGM) attributable gold production for the year was 1,272 thousand ounces with CAS of $755 per ounce and AISC of $918 per ounce. NGM attributable gold production for the quarter was 377 thousand ounces with CAS of $753 per ounce and AISC of $887 per ounce. NGM EBITDA10 was $1.4 billion for the full year and $483 million for the quarter.

Pueblo Viejo (PV) attributable gold production was 325 thousand ounces for the year and 71 thousand ounces for the quarter. Pueblo Viejo EBITDA11 was $420 million for the year and $84 million for the fourth quarter with cash distributions received from the Company's equity method investment of $180 million for the year and $50 million for the fourth quarter.

COVID UPDATE

Newmont continues to maintain wide-ranging protective measures for its workforce and neighboring communities, including screening, physical distancing, deep cleaning and avoiding exposure for at-risk individuals. The Company incurred incremental Covid specific costs of $21 million during the quarter and $87 million during 2021 for activities such as additional health and safety procedures, increased transportation and distributions from the community support fund. During the second quarter of 2020, the Newmont Global Community Support Fund of $20 million was established to help host communities, governments and employees combat the Covid pandemic, of which $14 million has been distributed since establishment. Amounts distributed from this fund were $3 million during 2021, which have been adjusted from certain non-GAAP metrics. The majority of the additional incremental Covid specific costs have not been adjusted from our non-GAAP metrics.

PROJECTS UPDATE12

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

  • Tanami Expansion 2 (Australia) secures Tanami’s future as a long-life, low-cost producer with potential to extend mine life beyond 2040 through the addition of a 1,460 meter hoisting shaft and supporting infrastructure to process 3.3 million tonnes per year and provide a platform for future growth. The expansion is expected to increase average annual gold production by approximately 150,000 to 200,000 ounces per year for the first five years and is expected to reduce operating costs by approximately 10 percent. Capital costs for the project are estimated to be between $850 and $950 million with a commercial production date in 2024.
  • Ahafo North (Africa) expands our existing footprint in Ghana with four open pit mines and a stand-alone mill located approximately 30 kilometers from the Company’s Ahafo South operations. The project is expected to add between 275,000 and 325,000 ounces per year with all-in sustaining costs between $600 to $700 per ounce for the first five full years of production (2024-2028). Capital costs for the project are estimated to be between $750 and $850 million with a construction completion date in late 2023 and commercial production in 2024. Ahafo North is the best unmined gold deposit in West Africa with approximately 3.5 million ounces of Reserves and more than 1 million ounces of Measured, Indicated and Inferred Resources and significant upside potential to extend beyond Ahafo North’s current 13-year mine life.
  • Yanacocha Sulfides (South America)13 will develop the first phase of sulfide deposits and an integrated processing circuit, including an autoclave to produce 45% gold, 45% copper and 10% silver. The project is expected to add average annual production of 525,000 gold equivalent ounces per year with all-in sustaining costs between $700 and $800 per ounce for the first five full years of production (2027-2031). Total capital costs for the project are estimated at $2.5 billion, with an investment decision expected in late 2022 and a three year development period. The first phase focuses on developing the Yanacocha Verde and Chaquicocha deposits to extend Yanacocha’s operations beyond 2040 with second and third phases having the potential to extend life for multiple decades.
  • Pamour (North America) extends the life of Porcupine and maintains production beginning in 2024. The project will optimize mill capacity, adding volume and supporting high grade ore from Borden and Hoyle Pond, while supporting further exploration in a highly prospective and proven mining district. An investment decision is expected in the second half of 2022 with estimated capital costs between $350 and $450 million.
  • Cerro Negro District Expansion 1 (South America) includes the simultaneous development of the Marianas and Eastern districts to extend the mine life of Cerro Negro beyond 2030. The project is expected to improve production to above 350,000 ounces beginning in 2024, while improving all-in sustaining costs to between $800 and $900 per ounce. Capital costs for the project are estimated to be approximately $300 million. This project provides a platform for further exploration and future growth through additional expansions.

________________________________________________

1

Attributable gold production includes 325 thousand ounces and 71 thousand ounces from the Company’s equity method investment in Pueblo Viejo (40%) in 2021 and the fourth quarter, respectively.

2

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

3

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

4

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

5

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

6

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

7

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

8

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

9

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

10

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

11

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

12

All-in sustaining costs are presented using a $1,200/oz gold price assumption.

13

Consolidated basis.

OUTLOOK

Newmont’s outlook reflects increasing gold production and ongoing investment in its operating assets and most promising growth prospects. Outlook includes current development capital costs and production related to Tanami Expansion 2, Ahafo North, Yanacocha Sulfides, Pamour at Porcupine and Cerro Negro District Expansion 1.

Newmont continues to develop our mine plan utilizing a $1,200 per ounce gold price assumption. However, due to sustained higher gold prices over the last two years, Newmont’s 2022 outlook assumes an $1,800 per ounce revenue gold price for CAS and AISC to reflect higher costs from inflation, royalties and production taxes. In 2022, an additional 5% of cost escalation is incorporated into our direct operating costs related to labor, energy, and material and supplies. 2022 and longer-term outlook assumes a $30 per ounce impact from production taxes and royalties attributable to higher gold prices. Outlook assumes operations continue without major Covid-related interruptions. Newmont continues to maintain wide-ranging protective measures for its workforce and neighboring communities, including screening, physical distancing, deep cleaning and avoiding exposure for at-risk individuals, which are expected to impact AISC per gold equivalent ounce by approximately $10 per ounce. If at any point the Company determines that continuing operations poses an increased risk to our workforce or host communities, it will reduce operational activities up to, and including, care and maintenance and management of critical environmental systems. Please see the cautionary statement for additional information.

For a more detailed discussion and outlook presented at a $1,200 per ounce gold price assumption, see the Company’s 2022 and Longer-Term Outlook released on December 2, 2021, available on www.newmont.com. The attributable site-level production for Yanacocha and attributable development capital guidance below accounts for the acquisition of Buenaventura's 43.65% interest in Yanacocha, as announced on February 8, 2022. All other guidance metrics remain unchanged from the Company's 2022 and Longer-Term Outlook as announced on December 2, 2021.

Five Year Outlook (+/- 5%): $1,800/oz Gold Price Assumption

 

Guidance Metric ($M) (+/- 5%)

2022E

2023E

2024E

2025E

2026E

Gold Production* (Moz)

6.2

6.0 - 6.6

6.2 - 6.8

6.2 - 6.8

6.2 - 6.8

Co-Product Production** (Mozs)

1.3

1.4 - 1.6

1.4 - 1.6

1.4 - 1.6

1.4 - 1.6

Total GEO Production (Mozs)

7.5

7.5 - 8.1

7.7 - 8.3

7.7 - 8.3

7.7 - 8.3

Gold CAS ($/oz)

820

740 - 840

700 - 800

700 - 800

700 - 800

Co-Product GEO CAS ($/oz)

675

600 - 700

500 - 600

500 - 600

500 - 600

Total GEO CAS ($/oz)

800

710 - 810

640 - 740

640 - 740

640 - 740

Gold AISC ($/oz)

1,050

980 - 1,080

920 - 1,020

920 - 1,020

920 - 1,020

Co-Product GEO AISC ($/oz)

975

900 - 1,000

800 - 900

800 - 900

800 - 900

Total GEO AISC ($/oz)

1,030

950 - 1,050

880 - 980

880 - 980

880 - 980

Sustaining Capital* ($M)

925

825 - 1,025

825 - 1,025

825 - 1,025

825 - 1,025

Development Capital* ($M)

1,400

1,300 - 1,500

1,100 - 1,300

400 - 600

100 - 300

Total Capital* ($M)

2,325

2,225 - 2,425

2,025 - 2,225

1,325 - 1,525

1,025 - 1,225

*Attributable basis; **Attributable co-product gold equivalent ounces; includes copper, zinc, silver and lead

Consolidated Expense Outlook

Guidance Metric ($M) (+/- 5%)

2022E

Exploration & Advanced Projects

450

General & Administrative

260

Interest Expense

225

Depreciation & Amortization

2,300

Adjusted Tax Rate a,b

30%-34%

a

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

b

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

2022 Site Outlook a
 

 

Consolidated
Production (Koz)

Attributable
Production (Koz)

Consolidated CAS
($/oz)

Consolidated All-In
Sustaining Costs b
($/oz)

Consolidated
Sustaining Capital
Expenditures ($M)

Consolidated
Development
Capital
Expenditures ($M)

 

 

 

 

 

 

 

CC&V

210

210

975

1,200

35

Éléonore

275

275

975

1,150

30

Peñasquito

475

475

650

850

125

Porcupine

340

340

875

1,025

40

100

Musselwhite

200

200

875

1,150

50

Other North America

 

 

 

 

 

 

 

Cerro Negro

260

260

875

1,095

50

75

Yanacochac

225

210

1,100

1,375

25

475

Merianc

465

350

750

860

50

Pueblo Viejod

285

Other South America

 

 

 

 

 

 

 

Boddington

900

900

750

860

95

10

Tanami

500

500

625

960

125

275

Other Australia

15

 

 

 

 

 

 

 

Ahafo

650

650

875

1,000

85

30

Akyem

400

400

725

925

40

10

Ahafo North

340

Other Africa

 

 

 

 

 

 

 

Nevada Gold Minese

1,250

1,250

825

1,050

245

70

 

 

 

 

 

 

 

Corporate/Other

 

 

 

 

 

 

 

Peñasquito - Co-products (GEO)f

1,000

1,000

670

940

 

 

Boddington - Co-products (GEO)f

300

300

740

890

 

 

 

 

 

 

 

 

 

Peñasquito - Silver (Moz)

29

29

 

 

 

 

Peñasquito - Lead (Mlbs)

150

150

 

 

 

 

Peñasquito - Zinc (Mlbs)

350

350

 

 

 

 

Boddington - Copper (Mlbs)

110

110

 

 

 

 

a

2022 outlook projections are considered forward-looking statements and represent management’s good faith estimates or expectations of future production results as of December 2, 2021. Outlook is based upon certain assumptions, including, but not limited to, metal prices, oil prices, certain exchange rates and other assumptions. For example, 2022 Outlook assumes $1,800/oz Au, $3.25/lb Cu, $23.00/oz Ag, $1.15/lb Zn, $0.95/lb Pb, $0.75 USD/AUD exchange rate, $0.80 USD/CAD exchange rate and $60/barrel WTI. Production, CAS, AISC and capital estimates exclude projects that have not yet been approved, except for Yanacocha Sulfides, Pamour and Cerro Negro District Expansion 1 which are included in Outlook. The potential impact on inventory valuation as a result of lower prices, input costs, and project decisions are not included as part of this Outlook. Assumptions used for purposes of Outlook may prove to be incorrect and actual results may differ from those anticipated, including variation beyond a +/-5% range. Outlook cannot be guaranteed. As such, investors are cautioned not to place undue reliance upon Outlook and forward-looking statements as there can be no assurance that the plans, assumptions or expectations upon which they are placed will occur. Amounts may not recalculate to totals due to rounding. The attributable production guidance accounts for the acquisition of Buenaventura's 43.65% interest in Yanacocha, as announced on February 8, 2022. All other guidance metrics remain unchanged from the Company's outlook as announced on December 2, 2021. See cautionary at the end of this release.

b

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

c

Consolidated production for Yanacocha and Merian is presented on a total production basis for the mine site; attributable production represents a 95% interest for Yanacocha and a 75% interest for Merian.

d

Attributable production includes Newmont’s 40% interest in Pueblo Viejo, which is accounted for as an equity method investment.

e

Represents the ownership interest in the Nevada Gold Mines (NGM) joint venture. NGM is owned 38.5% by Newmont and owned 61.5% and operated by Barrick. The Company accounts for its interest in NGM using the proportionate consolidation method, thereby recognizing its pro-rata share of the assets, liabilities and operations of NGM.

f

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

Three Months Ended December 31,

 

Year Ended December 31,

Operating Results

2021

2020

% Change

 

2021

2020

% Change

Attributable Sales (koz)

 

 

 

 

 

 

 

Attributable gold ounces sold (1)

 

1,559

 

1,554

%

 

 

5,660

 

5,550

2

%

Attributable gold equivalent ounces sold

 

328

 

 

282

 

16

%

 

 

1,258

 

 

1,062

 

18

%

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

Average realized gold price

$

1,798

 

$

1,852

 

(3

)%

 

$

1,788

 

$

1,775

 

1

%

Average realized copper price

$

4.54

 

$

3.54

 

28

%

 

$

4.29

 

$

2.78

 

54

%

Average realized silver price

$

19.82

 

$

20.78

 

(5

)%

 

$

20.19

 

$

17.86

 

13

%

Average realized lead price

$

1.11

 

$

0.80

 

39

%

 

$

1.00

 

$

0.72

 

39

%

Average realized zinc price

$

1.54

 

$

1.16

 

33

%

 

$

1.30

 

$

0.86

 

51

%

 

 

 

 

 

 

 

 

Attributable Production (koz)

 

 

 

 

 

 

 

North America

 

404

 

 

435

 

(7

)%

 

 

1,598

 

 

1,457

 

10

%

South America

 

182

 

 

200

 

(9

)%

 

 

733

 

 

736

 

%

Australia

 

339

 

 

304

 

12

%

 

 

1,181

 

 

1,165

 

1

%

Africa

 

245

 

 

243

 

1

%

 

 

862

 

 

851

 

1

%

Nevada

 

377

 

 

342

 

10

%

 

 

1,272

 

 

1,334

 

(5

)%

Total Gold (excluding equity method investments)

 

1,547

 

 

1,524

 

2

%

 

 

5,646

 

 

5,543

 

2

%

Pueblo Viejo (40%) (2)

 

71

 

 

106

 

(33

)%

 

 

325

 

 

362

 

(10

)%

Total Gold

 

1,618

 

 

1,630

 

(1

)%

 

 

5,971

 

 

5,905

 

1

%

 

 

 

 

 

 

 

 

North America

 

269

 

 

237

 

14

%

 

 

1,089

 

 

893

 

22

%

Australia

 

48

 

 

34

 

41

%

 

 

163

 

 

128

 

27

%

Total Gold Equivalent Ounces

 

317

 

 

271

 

17

%

 

 

1,252

 

 

1,021

 

23

%

 

 

 

 

 

 

 

 

CAS Consolidated ($/oz, $/GEO)

 

 

 

 

 

 

 

North America

$

883

 

$

731

 

21

%

 

$

796

 

$

773

 

3

%

South America

$

860

 

$

776

 

11

%

 

$

832

 

$

811

 

3

%

Australia

$

724

 

$

725

 

%

 

$

755

 

$

715

 

6

%

Africa

$

786

 

$

729

 

8

%

 

$

799

 

$

713

 

12

%

Nevada

$

753

 

$

739

 

2

%

 

$

755

 

$

757

 

%

Total Gold

$

802

 

$

739

 

9

%

 

$

785

 

$

756

 

4

%

Total Gold (by-product)

$

657

 

$

603

 

9

%

 

$

637

 

$

663

 

(4

)%

 

 

 

 

 

 

 

 

North America

$

717

 

$

523

 

37

%

 

$

603

 

$

535

 

13

%

Australia

$

874

 

$

824

 

6

%

 

$

902

 

$

837

 

8

%

Total Gold Equivalent Ounces

$

739

 

$

561

 

32

%

 

$

640

 

$

571

 

12

%

 

 

 

 

 

 

 

 

AISC Consolidated ($/oz, $/GEO)

 

 

 

 

 

 

 

North America

$

1,100

 

$

1,012

 

9

%

 

$

1,016

 

$

1,049

 

(3

)%

South America

$

1,158

 

$

1,070

 

8

%

 

$

1,130

 

$

1,100

 

3

%

Australia

$

904

 

$

1,106

 

(18

)%

 

$

1,002

 

$

964

 

4

%

Africa

$

1,020

 

$

893

 

14

%

 

$

1,022

 

$

890

 

15

%

Nevada

$

887

 

$

872

 

2

%

 

$

918

 

$

920

 

%

Total Gold

$

1,056

 

$

1,043

 

1

%

 

$

1,062

 

$

1,045

 

2

%

Total Gold (by-product)

$

965

 

$

957

 

1

%

 

$

969

 

$

1,005

 

(4

) %

 

 

 

 

 

 

 

 

North America

$

955

 

$

795

 

20

%

 

$

826

 

$

828

 

%

Australia

$

1,009

 

$

1,205

 

(16

)%

 

$

1,112

 

$

1,080

 

3

%

Total Gold Equivalent Ounces

$

1,007

 

$

846

 

19

%

 

$

900

 

$

858

 

5

%

(1)

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

(2)

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

NEWMONT CORPORATION

CONSOLIDATED STATEMENTS OF OPERATIONS

 

 

Three Months Ended
December 31,

 

Year Ended
December 31,

 

2021

 

2020

 

2021

 

2020

 

(in millions, except per share)

Sales

$

3,390

 

 

$

3,381

 

$

12,222

 

 

$

11,497

 

 

 

 

 

 

 

 

Costs and expenses

 

 

 

 

 

 

Costs applicable to sales (1)

 

1,540

 

 

 

1,355

 

 

5,435

 

 

 

5,014

 

Depreciation and amortization

 

639

 

 

 

615

 

 

2,323

 

 

 

2,300

 

Reclamation and remediation

 

1,626

 

 

 

250

 

 

1,846

 

 

 

366

 

Exploration

 

62

 

 

 

69

 

 

209

 

 

 

187

 

Advanced projects, research and development

 

46

 

 

 

30

 

 

154

 

 

 

122

 

General and administrative

 

69

 

 

 

64

 

 

259

 

 

 

269

 

Care and maintenance

 

 

 

 

7

 

 

8

 

 

 

178

 

Loss on assets held for sale

 

 

 

 

 

 

571

 

 

 

 

Other expense, net

 

34

 

 

 

71

 

 

160

 

 

 

255

 

 

 

4,016

 

 

 

2,461

 

 

10,965

 

 

 

8,691

 

Other income (expense):

 

 

 

 

 

 

Gain on asset and investment sales, net

 

166

 

 

 

84

 

 

212

 

 

 

677

 

Other income (loss), net

 

19

 

 

 

3

 

 

(87

)

 

 

(32

)

Interest expense, net of capitalized interest

 

(66

)

 

 

(73

)

 

(274

)

 

 

(308

)

 

 

119

 

 

 

14

 

 

(149

)

 

 

337

 

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

 

(507

)

 

 

934

 

 

1,108

 

 

 

3,143

 

Income and mining tax benefit (expense)

 

(300

)

 

 

(258

)

 

(1,098

)

 

 

(704

)

Equity income (loss) of affiliates

 

28

 

 

 

70

 

 

166

 

 

 

189

 

Net income (loss) from continuing operations

 

(779

)

 

 

746

 

 

176

 

 

 

2,628

 

Net income (loss) from discontinued operations

 

15

 

 

 

18

 

 

57

 

 

 

163

 

Net income (loss)

 

(764

)

 

 

764

 

 

233

 

 

 

2,791

 

Net loss (income) attributable to noncontrolling interests

 

718

 

 

 

60

 

 

933

 

 

 

38

 

Net income (loss) attributable to Newmont stockholders

$

(46

)

 

$

824

 

$

1,166

 

 

$

2,829

 

 

 

 

 

 

 

 

Net income (loss) attributable to Newmont stockholders:

 

 

 

 

 

 

Continuing operations

$

(61

)

 

$

806

 

$

1,109

 

 

$

2,666

 

Discontinued operations

 

15

 

 

 

18

 

 

57

 

 

 

163

 

 

$

(46

)

 

$

824

 

$

1,166

 

 

$

2,829

 

 

 

 

 

 

 

 

Weighted average common shares (millions):

 

 

 

 

 

 

Basic

 

795

 

 

 

802

 

 

799

 

 

 

804

 

Effect of employee stock-based awards

 

2

 

 

 

2

 

 

2

 

 

 

2

 

Diluted

 

797

 

 

 

804

 

 

801

 

 

 

806

 

 

 

 

 

 

 

 

Net income (loss) per common share

 

 

 

 

 

 

Basic:

 

 

 

 

 

 

Continuing operations

$

(0.08

)

 

$

1.01

 

$

1.39

 

 

$

3.32

 

Discontinued operations

 

0.02

 

 

 

0.02

 

 

0.07

 

 

 

0.20

 

 

$

(0.06

)

 

$

1.03

 

$

1.46

 

 

$

3.52

 

Diluted:

 

 

 

 

 

 

Continuing operations

$

(0.08

)

 

$

1.00

 

$

1.39

 

 

$

3.31

 

Discontinued operations

 

0.02

 

 

 

0.02

 

 

0.07

 

 

 

0.20

 

 

$

(0.06

)

 

$

1.02

 

$

1.46

 

 

$

3.51

 

(1)

Excludes Depreciation andamortization and Reclamation and remediation.

NEWMONT CORPORATION

CONSOLIDATED STATEMENTS OF CASH FLOWS

 

 

Three Months Ended
December 31,

 

Year Ended
December 31,

 

2021

 

2020

 

2021

 

2020

 

(in millions)

Operating activities:

 

 

 

 

 

 

Net income (loss)

$

(764

)

 

$

764

 

$

233

 

 

$

2791

 

Adjustments:

 

 

 

 

 

 

Depreciation and amortization

 

639

 

 

 

615

 

 

2,323

 

 

 

2,300

 

Loss on assets held for sale

 

 

 

 

 

 

571

 

 

 

 

Gain on asset and investment sales, net

 

(166

)

 

 

(84

)

 

(212

)

 

 

(677

)

Net loss (income) from discontinued operations

 

(15

)

 

 

(18

)

 

(57

)

 

 

(163

)

Reclamation and remediation

 

1,619

 

 

 

246

 

 

1,827

 

 

 

353

 

Change in fair value of investments

 

(45

)

 

 

(61

)

 

135

 

 

 

(252

)

Stock-based compensation

 

17

 

 

 

17

 

 

72

 

 

 

72

 

Deferred income taxes

 

(99

)

 

 

(150

)

 

(109

)

 

 

(222

)

Other non-cash adjustments

 

76

 

 

 

112

 

 

24

 

 

 

393

 

Net change in operating assets and liabilities

 

37

 

 

 

245

 

 

(541

)

 

 

295

 

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

 

1,299

 

 

 

1,686

 

 

4,266

 

 

 

4,890

 

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

 

 

 

 

 

 

13

 

 

 

(8

)

Net cash provided by (used in) operating activities

 

1,299

 

 

 

1,686

 

 

4,279

 

 

 

4,882

 

 

 

 

 

 

 

 

Investing activities:

 

 

 

 

Additions to property, plant and mine development

 

(441

)

 

 

(398

)

 

(1,653

)

 

 

(1,302

)

Acquisitions, net (1)

 

 

 

 

 

 

(328

)

 

 

 

Proceeds from sales of investments

 

87

 

 

 

2

 

 

194

 

 

 

307

 

Contributions to equity method investees

 

(36

)

 

 

(44

)

 

(150

)

 

 

(60

)

Purchases of investments

 

(41

)

 

 

(4

)

 

(59

)

 

 

(37

)

Return of investment from equity method investees

 

 

 

 

15

 

 

18

 

 

 

58

 

Proceeds from sales of mining operations and other assets, net

 

80

 

 

 

19

 

 

84

 

 

 

1,156

 

Other

 

 

 

 

(1

)

 

26

 

 

 

44

 

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

 

(351

)

 

 

(411

)

 

(1,868

)

 

 

166

 

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

 

 

 

 

 

 

 

 

 

(75

)

Net cash provided by (used in) investing activities

 

(351

)

 

 

(411

)

 

(1,868

)

 

 

91

 

 

 

 

 

 

 

 

Financing activities:

 

 

 

 

Dividends paid to common stockholders

 

(436

)

 

 

(320

)

 

(1,757

)

 

 

(834

)

Repayment of debt

 

(832

)

 

 

 

 

(1,382

)

 

 

(1,160

)

Proceeds from issuance of debt, net

 

992

 

 

 

 

 

992

 

 

 

985

 

Repurchases of common stock

 

(277

)

 

 

(200

)

 

(525

)

 

 

(521

)

Distributions to noncontrolling interests

 

(45

)

 

 

(54

)

 

(200

)

 

 

(197

)

Funding from noncontrolling interests

 

27

 

 

 

30

 

 

100

 

 

 

112

 

Payments on lease and other financing obligations

 

(19

)

 

 

(17

)

 

(73

)

 

 

(66

)

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

 

(1

)

 

 

(3

)

 

(32

)

 

 

(48

)

Other

 

(4

)

 

 

3

 

 

(81

)

 

 

49

 

Net cash provided by (used in) financing activities

 

(595

)

 

 

(561

)

 

(2,958

)

 

 

(1,680

)

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

 

(5

)

 

 

2

 

 

(8

)

 

 

6

 

Net change in cash, cash equivalents and restricted cash

 

348

 

 

 

716

 

 

(555

)

 

 

3,299

 

Cash, cash equivalents and restricted cash at beginning of period

 

4,745

 

 

 

4,932

 

 

5,648

 

 

 

2,349

 

Cash, cash equivalents and restricted cash at end of period

$

5,093

 

 

$

5,648

 

$

5,093

 

 

$

5,648

 

 

 

 

 

 

 

 

Reconciliation of cash, cash equivalents and restricted cash:

 

 

 

 

Cash and cash equivalents

$

4,992

 

 

$

5,540

 

$

4,992

 

 

$

5,540

 

Restricted cash included in Other current assets

 

2

 

 

 

2

 

 

2

 

 

 

2

 

Restricted cash included in Other non-current assets

 

99

 

 

 

106

 

 

99

 

 

 

106

 

Total cash, cash equivalents and restricted cash

$

5,093

 

 

$

5,648

 

$

5,093

 

 

$

5,648

 

(1)

Acquisitions, net for the year ended December 31, 2021 is primarily related to the asset acquisition of the remaining 85.1% of GT Gold Corporation (“GT Gold”). Refer to Note 1 to the Consolidated Financial Statements for additional information.

NEWMONT CORPORATION

CONSOLIDATED BALANCE SHEETS

 

 

At December 31,
2021

 

At December 31,
2020

 

(in millions)

ASSETS

 

 

 

Cash and cash equivalents

$

4,992

 

 

$

5,540

 

Trade receivables

 

337

 

 

 

449

 

Investments

 

82

 

 

 

290

 

Inventories

 

930

 

 

 

963

 

Stockpiles and ore on leach pads

 

857

 

 

 

827

 

Other current assets

 

498

 

 

 

436

 

Current assets

 

7,696

 

 

 

8,505

 

Property, plant and mine development, net

 

24,124

 

 

 

24,281

 

Investments

 

3,243

 

 

 

3,197

 

Stockpiles and ore on leach pads

 

1,775

 

 

 

1,705

 

Deferred income tax assets

 

269

 

 

 

337

 

Goodwill

 

2,771

 

 

 

2,771

 

Other non-current assets

 

686

 

 

 

573

 

Total assets

$

40,564

 

 

$

41,369

 

 

 

 

 

LIABILITIES

 

 

 

Accounts payable

$

518

 

 

$

493

 

Employee-related benefits

 

386

 

 

 

380

 

Income and mining taxes

 

384

 

 

 

657

 

Current lease and other financing obligations

 

106

 

 

 

106

 

Debt

 

87

 

 

 

551

 

Other current liabilities

 

1,173

 

 

 

1,182

 

Current liabilities

 

2,654

 

 

 

3,369

 

Debt

 

5,565

 

 

 

5,480

 

Lease and other financing obligations

 

544

 

 

 

565

 

Reclamation and remediation liabilities

 

5,839

 

 

 

3,818

 

Deferred income tax liabilities

 

2,144

 

 

 

2,073

 

Employee-related benefits

 

439

 

 

 

493

 

Silver streaming agreement

 

910

 

 

 

993

 

Other non-current liabilities

 

608

 

 

 

699

 

Total liabilities

 

18,703

 

 

 

17,490

 

 

 

 

 

Contingently redeemable noncontrolling interest

 

48

 

 

 

34

 

 

 

 

 

EQUITY

 

 

 

Common stock

 

1,276

 

 

 

1,287

 

Treasury stock

 

(200

)

 

 

(168

)

Additional paid-in capital

 

17,981

 

 

 

18,103

 

Accumulated other comprehensive income (loss)

 

(133

)

 

 

(216

)

Retained earnings

 

3,098

 

 

 

4,002

 

Newmont stockholders' equity

 

22,022

 

 

 

23,008

 

Noncontrolling interests

 

(209

)

 

 

837

 

Total equity

 

21,813

 

 

 

23,845

 

Total liabilities and equity

$

40,564

 

 

$

41,369

 

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. For additional information regarding our discontinued operations, see Note 1 to the Consolidated Financial Statements.

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
December 31, 2021

 

Year Ended
December 31, 2021

 

 

 

per share data (1)

 

 

 

per share data (1)

 

 

 

basic

 

diluted

 

 

 

basic

 

diluted

Net income (loss) attributable to Newmont stockholders

$

(46

)

 

$

(0.06

)

 

$

(0.06

)

 

$

1,166

 

 

$

1.46

 

 

$

1.46

 

Net loss (income) attributable to Newmont stockholders from discontinued operations (2)

 

(15

)

 

 

(0.02

)

 

 

(0.02

)

 

 

(57

)

 

 

(0.07

)

 

 

(0.07

)

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

 

(61

)

 

 

(0.08

)

 

 

(0.08

)

 

 

1,109

 

 

 

1.39

 

 

 

1.39

 

Reclamation and remediation charges, net (3)

 

874

 

 

 

1.10

 

 

 

1.10

 

 

 

983

 

 

 

1.23

 

 

 

1.23

 

Loss on assets held for sale, net (4)

 

 

 

 

 

 

 

 

 

 

372

 

 

 

0.47

 

 

 

0.46

 

Gain on asset and investment sales (5)

 

(166

)

 

 

(0.21

)

 

 

(0.21

)

 

 

(212

)

 

 

(0.27

)

 

 

(0.27

)

Change in fair value of investments (6)

 

(45

)

 

 

(0.05

)

 

 

(0.05

)

 

 

135

 

 

 

0.17

 

 

 

0.17

 

Impairment of long-lived and other assets (7)

 

7

 

 

 

0.01

 

 

 

0.01

 

 

 

25

 

 

 

0.03

 

 

 

0.03

 

Loss on debt extinguishment (8)

 

11

 

 

 

0.01

 

 

 

0.01

 

 

 

11

 

 

 

0.01

 

 

 

0.01

 

Settlement costs (9)

 

 

 

 

 

 

 

 

 

 

11

 

 

 

0.01

 

 

 

0.01

 

Restructuring and severance, net (10)

 

 

 

 

 

 

 

 

 

 

9

 

 

 

0.01

 

 

 

0.01

 

COVID-19 specific costs (11)

 

2

 

 

 

 

 

 

 

 

 

5

 

 

 

 

 

 

 

Pension settlements (12)

 

4

 

 

 

 

 

 

 

 

 

4

 

 

 

 

 

 

 

Impairment of investments (13)

 

 

 

 

 

 

 

 

 

 

1

 

 

 

 

 

 

 

Tax effect of adjustments (14)

 

(216

)

 

 

(0.27

)

 

 

(0.27

)

 

 

(413

)

 

 

(0.51

)

 

 

(0.51

)

Valuation allowance and other tax adjustments, net (15)

 

214

 

 

 

0.27

 

 

 

0.27

 

 

 

331

 

 

 

0.43

 

 

 

0.43

 

Adjusted net income (loss) (16)

$

624

 

 

$

0.78

 

 

$

0.78

 

 

$

2,371

 

 

$

2.97

 

 

$

2.96

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares (millions): (17)

 

 

795

 

 

 

797

 

 

 

 

 

799

 

 

 

801

 

(1)

Per share measures may not recalculate due to rounding.

(2)

For additional information regarding our discontinued operations, see Note 1 to our Consolidated Financial Statements.

(3)

Reclamation and remediation charges, net, included in Reclamation and remediation, represent revisions to the reclamation and remediation plans and cost estimates at the Company’s former operating properties and historic mining operations that have entered the closure phase and have no substantive future economic value. Amounts are presented pre-tax net of income (loss) attributable to noncontrolling interests of $(713) and $(713), respectively.

(4)

Loss on assets held for sale, net, included in Loss on assets held for sale, represents the loss recognized due to the reclassification of the Conga mill assets as held for sale during the third quarter of 2021. The assets were remeasured to fair value less costs to sell. Amounts are presented net of income (loss) attributable to noncontrolling interests of $— and $(199), respectively.

(5)

Gain on asset and investment sales, included in Gain on asset and investment sales, net, primarily represents the gain on the sale of the Kalgoorlie Power business, gain on the NGM Lone Tree and South Arturo exchange, and gain on the sale of TMAC.

(6)

Change in fair value of investments, included in Other income (loss), net, primarily represents unrealized gains and losses related to the Company's investment in current and non-current marketable and other equity securities.

(7)

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

(8)

Loss on debt extinguishment, included in Other income (loss), net, primarily represents losses on the debt tender offer and subsequent extinguishment of the 2023 Newmont Senior Notes and the 2023 Goldcorp Senior Notes.

(9)

Settlement costs, included in Other expense, net, primarily are comprised of a voluntary contribution made to the Republic of Suriname.

(10)

Restructuring and severance, net, included in Other expense, net, primarily represents severance and related costs associated with significant organizational or operating model changes implemented by the Company. Amounts are presented net of income (loss) attributable to noncontrolling interests of $(1) and $(2), respectively.

(11)

COVID-19 specific costs, included in Other expense, net, represents incremental direct costs incurred as a result of actions taken to protect against the impacts of the COVID-19 pandemic and primarily include amounts distributed from the Newmont Global Community Fund to help host communities, governments and employees combat the COVID-19 pandemic. Adjusted net income (loss) has not been adjusted for $19 and $82 of incremental COVID-19 costs incurred as a result of actions taken to protect against the impacts of the COVID-19 pandemic at our operational sites.

(12)

Pension settlements, included in Other income (loss), net, represents pension settlement charges due to lump sum payments to participants.

(13)

Impairment of investments, included in Other income (loss), net, primarily represents other-than-temporary impairment of other investments.

(14)

The tax effect of adjustments, included in Income and mining tax benefit (expense), represents the tax effect of adjustments in footnotes (3) through (13), as described above, and are calculated using the applicable regional tax rate.

(15)

Valuation allowance and other tax adjustments, net, included in Income and mining tax benefit (expense), is recorded for items such as foreign tax credits, alternative minimum tax credits, capital losses, disallowed foreign losses, and the effects of changes in foreign currency exchange rates on deferred tax assets and deferred tax liabilities. The adjustment is due the net increase or (decrease) to net operating losses, capital losses, tax credit carryovers and other deferred tax assets subject to valuation allowance of $204 and $419, respectively, the expiration of U.S. capital loss carryovers of $152 and $152, respectively, the effects of changes in foreign exchange rates on deferred tax assets and liabilities of $10 and $(17), respectively, net reductions to the reserve for uncertain tax positions of $78 and $99, respectively and other tax adjustments of $23 and $5, respectively. Total amounts are presented net of income (loss) attributable to noncontrolling interests of $(253) and $(327), respectively.

(16)

Adjusted net income (loss) has not been adjusted for $— and $8 of cash and $— and $3 of non-cash care and maintenance costs, included in Care and maintenance and Depreciation and amortization, respectively, which primarily represent costs associated with certain sites being temporarily placed into care and maintenance in response to the COVID-19 pandemic during a portion of the three months and year ended December 31, 2021, respectively.

(17)

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

Three Months Ended

December 31, 2020

 

Year Ended

December 31, 2020

 

 

 

per share data (1)

 

 

 

per share data (1)

 

 

 

basic

 

diluted

 

 

 

basic

 

diluted

Net income (loss) attributable to Newmont stockholders

$

824

 

 

$

1.03

 

 

$

1.02

 

 

$

2,829

 

 

$

3.52

 

 

$

3.51

 

Net loss (income) attributable to Newmont stockholders from discontinued operations (2)

 

(18

)

 

 

(0.02

)

 

 

(0.02

)

 

 

(163

)

 

 

(0.20

)

 

 

(0.20

)

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

 

806

 

 

 

1.01

 

 

 

1.00

 

 

 

2,666

 

 

 

3.32

 

 

 

3.31

 

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

 

(84

)

 

 

(0.10

)

 

 

(0.10

)

 

 

(677

)

 

 

(0.84

)

 

 

(0.84

)

Change in fair value of investments (4)

 

(61

)

 

 

(0.08

)

 

 

(0.08

)

 

 

(252

)

 

 

(0.31

)

 

 

(0.31

)

Reclamation and remediation charges, net (5)

 

160

 

 

 

0.20

 

 

 

0.20

 

 

 

160

 

 

 

0.20

 

 

 

0.20

 

Impairment of investments (6)

 

 

 

 

 

 

 

 

 

 

93

 

 

 

0.11

 

 

 

0.11

 

Pension settlement (7)

 

7

 

 

 

0.01

 

 

 

0.01

 

 

 

92

 

 

 

0.11

 

 

 

0.11

 

COVID-19 specific costs, net (8)

 

22

 

 

 

0.03

 

 

 

0.03

 

 

 

84

 

 

 

0.10

 

 

 

0.10

 

Loss on debt extinguishment (9)

 

 

 

 

 

 

 

 

 

 

77

 

 

 

0.09

 

 

 

0.09

 

Settlement costs, net (10)

 

24

 

 

 

0.03

 

 

 

0.03

 

 

 

55

 

 

 

0.07

 

 

 

0.07

 

Impairment of long-lived and other assets (11)

 

20

 

 

 

0.02

 

 

 

0.02

 

 

 

49

 

 

 

0.06

 

 

 

0.06

 

Goldcorp transaction and integration costs (12)

 

 

 

 

 

 

 

 

 

 

23

 

 

 

0.03

 

 

 

0.03

 

Restructuring and severance, net (13)

 

6

 

 

 

0.01

 

 

 

0.01

 

 

 

17

 

 

 

0.02

 

 

 

0.02

 

Tax effect of adjustments (14)

 

(31

)

 

 

(0.04

)

 

 

(0.04

)

 

 

62

 

 

 

0.08

 

 

 

0.08

 

Valuation allowance and other tax adjustments, net (15)

 

(13

)

 

 

(0.02

)

 

 

(0.02

)

 

 

(309

)

 

 

(0.38

)

 

 

(0.37

)

Adjusted net income (loss) (16)

$

856

 

 

$

1.07

 

 

$

1.06

 

 

$

2,140

 

 

$

2.66

 

 

$

2.66

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares (millions): (17)

 

 

 

802

 

 

 

804

 

 

 

 

 

804

 

 

 

806

 

(1)

Per share measures may not recalculate due to rounding.

(2)

For additional information regarding our discontinued operations, see Note 1 to our Consolidated Financial Statements.

(3)

(Gain) loss on asset and investment sales, included in Gain on asset and investment sales, net, primarily represents gains on the sale of Kalgoorlie and Continental and a gain on the sale of royalty interests to Maverix.

(4)

Change in fair value of investments, included in Other income, net, primarily represents unrealized holding gains and losses on marketable equity securities and our investment instruments.

(5)

Reclamation and remediation charges, net, included in Reclamation and remediation, represent revisions to remediation plans at the Company’s former operating properties and historic mining operations that have entered the closure phase and have no substantive future economic value, including adjustments related to increased lime consumption and water treatment costs at inactive Yanacocha sites and updated project cost estimates at inactive Porcupine sites, the Midnite mine site and Dawn mill site. Amounts are presented net of income (loss) attributable to noncontrolling interests of $(53) and $(53), respectively.

(6)

Impairment of investments, included in Other income, net, primarily represents the other-than-temporary impairment of the TMAC investment.

(7)

Pension settlements, included in Other income, net, represents pension settlement charges due to lump sum payments to participants.

(8)

COVID-19 specific costs, net, included in Other expense, net, represents incremental direct costs incurred as a result of actions taken to protect against the impacts of the COVID-19 pandemic. Amount is presented net of income (loss) attributable to noncontrolling interests of $(3) and $(8), respectively.

(9)

Loss on debt extinguishment, included in Other income, net, primarily represents losses on the extinguishment of a portion of the 2022 Senior Notes and 2023 Senior Notes during 2020.

(10)

Settlement costs, net, included in Other expense, net, primarily represents costs related to the ecological tax obligation at Peñasquito in Mexico, mineral interest settlements at Ahafo and Akyem in Africa, the Cedros community agreement at Peñasquito in Mexico, a water related settlement at Yanacocha in Peru and other related costs. Amounts are presented net of income (loss) attributable to noncontrolling interests of $— and $(3), respectively.

(11)

Impairment of long-lived and other assets, included in Impairment of long-lived and other assets, represents non-cash write-downs of various assets that are no longer in use.

(12)

Goldcorp transaction and integration costs, included in Other expense, net, primarily represents costs incurred related to the Newmont Goldcorp transaction completed during 2019 as well as subsequent integration costs.

(13)

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

(14)

The tax effect of adjustments, included in Income and mining tax benefit (expense), represents the tax effect of adjustments in footnotes (3) through (13), as described above, and are calculated using the applicable regional tax rate.

(15)

Valuation allowance and other tax adjustments, net, included in Income and mining tax benefit (expense), is recorded for items such as foreign tax credits, alternative minimum tax credits, capital losses, disallowed foreign losses, and the effects of changes in foreign currency exchange rates on deferred tax assets and deferred tax liabilities. The adjustment is due to the benefit recognized on the sale of Kalgoorlie and related tax capital loss of $— and $(353), respectively, net increase or (decrease) to net operating losses, tax credit carryovers and other deferred tax assets subject to valuation allowance of $(54) and $186, respectively, the effects of changes in foreign exchange rates on deferred tax assets and liabilities of $75 and $(98), respectively, net reductions to the reserve for uncertain tax positions of $(2) and $(21), respectively and other tax adjustments of $4 and $39, respectively. Total amounts are presented net of income (loss) attributable to noncontrolling interests of $(36) and $(62), respectively.

(16)

Adjusted net income (loss) has not been adjusted for $7 and $165 of cash and $2 and $85 of non-cash care and maintenance costs, included in Care and maintenance and Depreciation and amortization, respectively, which primarily represent costs associated with our Musselwhite, Éléonore, Peñasquito, Yanacocha and Cerro Negro sites being temporarily placed into care and maintenance in response to the COVID-19 pandemic during a portion of the year ended December 31, 2020, respectively. Amounts are presented net of income (loss) attributable to noncontrolling interests of $—, $13, $— and $3, respectively.

(17)

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

Earnings before interest, taxes 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
December 31,

 

Year Ended
December 31,

2021

 

2020

 

2021

 

2020

Net income (loss) attributable to Newmont stockholders

$

(46

)

 

$

824

 

 

$

1,166

 

 

$

2,829

 

Net income (loss) attributable to noncontrolling interests

 

(718

)

 

 

(60

)

 

 

(933

)

 

 

(38

)

Net (income) loss from discontinued operations (1)

 

(15

)

 

 

(18

)

 

 

(57

)

 

 

(163

)

Equity loss (income) of affiliates

 

(28

)

 

 

(70

)

 

 

(166

)

 

 

(189

)

Income and mining tax expense (benefit)

 

300

 

 

 

258

 

 

 

1,098

 

 

 

704

 

Depreciation and amortization

 

639

 

 

 

615

 

 

 

2,323

 

 

 

2,300

 

Interest expense, net

 

66

 

 

 

73

 

 

 

274

 

 

 

308

 

EBITDA

$

198

 

 

$

1,622

 

 

$

3,705

 

 

$

5,751

 

Adjustments:

 

 

 

 

 

 

 

Reclamation and remediation charges (2)

$

1,587

 

 

$

213

 

 

$

1,696

 

 

$

213

 

Loss on assets held for sale (3)

 

 

 

 

 

 

 

571

 

 

 

 

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

 

(166

)

 

 

(84

)

 

 

(212

)

 

 

(677

)

Change in fair value of investments (5)

 

(45

)

 

 

(61

)

 

 

135

 

 

 

(252

)

Impairment of long-lived and other assets (6)

 

7

 

 

 

20

 

 

 

25

 

 

 

49

 

Loss on debt extinguishment (7)

 

11

 

 

 

 

 

 

11

 

 

 

77

 

Settlement costs (8)

 

 

 

 

24

 

 

 

11

 

 

 

58

 

Restructuring and severance (9)

 

1

 

 

 

6

 

 

 

11

 

 

 

18

 

COVID-19 specific costs (10)

 

2

 

 

 

25

 

 

 

5

 

 

 

92

 

Pension settlements and curtailments (11)

 

4

 

 

 

7

 

 

 

4

 

 

 

92

 

Impairment of investments (12)

 

 

 

 

 

 

 

1

 

 

 

93

 

Goldcorp transaction and integration costs (13)

 

 

 

 

 

 

 

 

 

 

23

 

Adjusted EBITDA (14)

$

1,599

 

 

$

1,772

 

 

$

5,963

 

 

$

5,537

 

(1)

For additional information regarding our discontinued operations, see Note 1 to our Consolidated Financial Statements.

(2)

Reclamation and remediation charges, included in Reclamation and remediation, represent revisions to the reclamation and remediation plans and cost estimates at the Company’s former operating properties and historic mining operations that have entered the closure phase and have no substantive future economic value. For additional information, see Notes 6 and 26 to our Consolidated Financial Statements.

(3)

Loss on assets held for sale, included in Loss on assets held for sale, represents the loss recognized due to the reclassification of the Conga mill assets as held for sale during the third quarter of 2021. The assets were remeasured to fair value less costs to sell. For additional information, see Note 8 to our Consolidated Financial Statements.

(4)

Gain on asset and investment sales, included in Gain on asset and investment sales, net, primarily represents the gain on the sale of the Kalgoorlie Power Plant, gain on the NGM Lone Tree and South Arturo exchange, and gain on the sale of TMAC in 2021; gains on the sale of Kalgoorlie and Continental and a gain on the sale of certain royalty interests to Maverix in 2020. For additional information, see Note 10 to our Consolidated Financial Statements.

(5)

Change in fair value of investments, included in Other income (loss), net, primarily represents unrealized gains and losses related to the Company's investments in current and non-current marketable and other equity securities. For additional information regarding our investments, see Note 16 to our Consolidated Financial Statements.

(6)

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

(7)

Loss on debt extinguishment, included in Other income (loss), net, primarily represents losses on the debt tender offer and subsequent extinguishment of the 2023 Newmont Senior Notes and the 2023 Goldcorp Senior Notes during 2021 and the extinguishment of a portion of the 2022 Senior Notes and 2023 Senior Notes during 2020.

(8)

Settlement costs, included in Other expense, net, primarily represents a voluntary contribution made to the Republic of Suriname in 2021; and costs related to the ecological tax obligation at Peñasquito in Mexico, mineral interest settlements at Ahafo and Akyem in Africa, the Cedros community agreement at Peñasquito in Mexico, a water related settlement at Yanacocha in Peru and other related costs in 2020.

(9)

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

(10)

COVID-19 specific costs, included in Other expense, net, represents incremental direct costs incurred as a result of actions taken to protect against the impacts of the COVID-19 pandemic and, in 2021, primarily include amounts distributed from Newmont Global Community Support Fund to help host communities, governments and employees combat the COVID-19 pandemic.

(11)

Pension settlements and curtailments, included in Other income (loss), net, primarily represents pension settlement charges due to lump sum payments to participants in 2021 and 2020.

(12)

Impairment of investments, included in Other income (loss), net, primarily represents other-than-temporary impairment of other investments, including the impairment of the TMAC investment in 2020.

(13)

Goldcorp transaction and integration costs, included in Other expense, net, primarily represents costs incurred related to the Newmont Goldcorp transaction completed during 2019 as well as subsequent integration costs.

(14)

Adjusted EBITDA has not been adjusted for $—, $7, $8, and $178 of cash care and maintenance costs, respectively, included in Care and maintenance, which primarily represent costs incurred associated with certain mine sites being temporarily placed into care and maintenance in response to the COVID-19 pandemic during a portion of the three months and years ended December 31, 2021 and 2020, respectively.

Additionally, the Company uses Pueblo Viejo EBITDA as a non-GAAP measure to evaluate the operating performance of its investment in the Pueblo Viejo mine. Pueblo Viejo EBITDA does not represent, and should not be considered an alternative to, Equity income (loss) of affiliates, as defined by GAAP, and does not necessarily indicate whether cash distributions from Pueblo Viejo will match Pueblo Viejo EBITDA or earnings from affiliates. Although the Company has the ability to exert significant influence, it does not have direct control over the operations or resulting revenues and expenses, nor does it proportionately consolidate its investment in Pueblo Viejo. The Company believes that Pueblo Viejo EBITDA provides useful information to investors and others in understanding and evaluating the operating results of its investment in Pueblo Viejo, in the same manner as management and the Board of Directors. Equity income (loss) of affiliates is reconciled to Pueblo Viejo EBITDA as follows:​

 

Three Months Ended
December 31,

 

Year Ended
December 31,

 

2021

 

2020

 

2021

 

2020

 

 

 

 

 

 

 

 

Equity income (loss) of affiliates

$

28

 

$

70

 

 

$

166

 

$

189

Equity (income) loss of affiliates, excluding Pueblo Viejo (1)

 

1

 

 

 

(12

)

 

 

 

 

 

4

 

Equity income (loss) of affiliates, Pueblo Viejo (1)

 

29

 

 

 

58

 

 

 

166

 

 

 

193

 

Reconciliation of Pueblo Viejo on attributable basis:

 

 

 

 

 

 

 

Income and mining tax expense (benefit)

 

28

 

 

 

58

 

 

 

145

 

 

 

169

 

Depreciation and amortization

 

27

 

 

 

20

 

 

 

109

 

 

 

72

 

Pueblo Viejo EBITDA

$

84

 

 

$

136

 

 

$

420

 

 

$

434

 

(1)

See Note 16 to the Consolidated Financial Statements.​

The Company uses NGM EBITDA as a non-GAAP measure to evaluate the operating performance of its investment in Nevada Gold Mines (NGM). NGM EBITDA does not represent, and should not be considered an alternative to, Income (loss) before income and mining tax and other items, as defined by GAAP, and does not necessarily indicate whether cash distributions from NGM will match NGM EBITDA. Although the Company has the ability to exert significant influence and proportionally consolidates its 38.5% interest in NGM, it does not have direct control over the operations or resulting revenues and expenses of its investment in NGM. The Company believes that NGM EBITDA provides useful information to investors and others in understanding and evaluating the operating results of its investment in NGM, in the same manner as management and the Board of Directors. Income (loss) before income and mining tax and other items is reconciled to NGM EBITDA as follows:

 

Three Months Ended
December 31,

 

Year Ended
December 31,

 

2021

 

2020

 

2021

 

2020

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

$

319

 

$

214

 

$

818

 

$

700

Depreciation and amortization, NGM (1)

 

164

 

 

 

150

 

 

 

550

 

 

 

579

 

NGM EBITDA

$

483

 

 

$

364

 

 

$

1,368

 

 

$

1,279

 

(1)

See Note 4 to the Consolidated Financial Statements.

Free Cash Flow

Management uses Free Cash Flow as a non-GAAP measure to analyze cash flows generated from operations. Free Cash Flow is Net cash provided by (used in) operating activities less Net cash provided by (used in) operating activities of discontinued operations less Additions to property, plant and mine development as presented on the 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 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
December 31,

 

Year Ended
December 31,

 

2021

 

2020

 

2021

 

2020

Net cash provided by (used in) operating activities

$

1,299

 

 

$

1,686

 

 

$

4,279

 

 

$

4,882

 

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

 

 

 

 

 

 

 

(13

)

 

 

8

 

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

 

1,299

 

 

 

1,686

 

 

 

4,266

 

 

 

4,890

 

Less: Additions to property, plant and mine development

 

(441

)

 

 

(398

)

 

 

(1,653

)

 

 

(1,302

)

Free Cash Flow

$

858

 

 

$

1,288

 

 

$

2,613

 

 

$

3,588

 

 

 

 

 

 

 

 

 

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

$

(351

)

 

$

(411

)

 

$

(1,868

)

 

$

91

 

Net cash provided by (used in) financing activities

$

(595

)

 

$

(561

)

 

$

(2,958

)

 

$

(1,680

)

(1)

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

Attributable Free Cash Flow

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

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

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

 

Three Months Ended December 31, 2021

 

Year Ended December 31, 2021

 

Consolidated

 

Attributable to
noncontrolling
interests (1)

 

Attributable to
Newmont
Stockholders

 

Consolidated

 

Attributable to
noncontrolling
interests (1)

 

Attributable to
Newmont
Stockholders

Net cash provided by (used in) operating activities

$

1,299

 

 

$

1

 

$

1,300

 

 

$

4,279

 

 

$

(91

)

 

$

4,188

 

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

 

 

 

 

 

 

 

 

 

 

(13

)

 

 

 

 

 

(13

)

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

 

1,299

 

 

 

1

 

 

 

1,300

 

 

 

4,266

 

 

 

(91

)

 

 

4,175

 

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

 

(441

)

 

 

36

 

 

 

(405

)

 

 

(1,653

)

 

 

86

 

 

 

(1,567

)

Free Cash Flow

$

858

 

 

$

37

 

 

$

895

 

 

$

2,613

 

 

$

(5

)

 

$

2,608

 

 

 

 

 

 

 

 

 

 

 

 

 

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

$

(351

)

 

 

 

 

 

$

(1,868

)

 

 

 

 

Net cash provided by (used in) financing activities

$

(595

)

 

 

 

 

 

$

(2,958

)

 

 

 

 

(1)

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

(2)

For the three months and year ended December 31, 2021, Yanacocha had total consolidated Additions to property, plant and mine development of $66 and $155, respectively, on a cash basis. For the three months and year ended December 31, 2021, Merian had total consolidated Additions to property, plant and mine development of $17 and $48, respectively, on a cash basis.

(3)

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

 

Three Months Ended December 31, 2020

 

Year Ended December 31, 2020

 

Consolidated

 

Attributable to
noncontrolling
interests (1)

 

Attributable to
Newmont
Stockholders

 

Consolidated

 

Attributable to
noncontrolling
interests (1)

 

Attributable to
Newmont
Stockholders

Net cash provided by (used in) operating activities

$

1,686

 

 

$

(48

)

 

$

1,638

 

 

$

4,882

 

 

$

(180

)

 

$

4,702

 

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

 

 

 

 

 

 

 

 

 

 

8

 

 

 

 

 

 

8

 

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

 

1,686

 

 

 

(48

)

 

 

1,638

 

 

 

4,890

 

 

 

(180

)

 

 

4,710

 

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

 

(398

)

 

 

20

 

 

 

(378

)

 

 

(1,302

)

 

 

57

 

 

 

(1,245

)

Free Cash Flow

$

1,288

 

 

$

(28

)

 

$

1,260

 

 

$

3,588

 

 

$

(123

)

 

$

3,465

 

 

 

 

 

 

 

 

 

 

 

 

 

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

$

(411

)

 

 

 

 

 

$

91

 

 

 

 

 

Net cash provided by (used in) financing activities

$

(561

)

 

 

 

 

 

$

(1,680

)

 

 

 

 

(1)

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

(2)

For the three months and year ended December 31, 2020, Yanacocha had total consolidated Additions to property, plant and mine development of $33 and $99, respectively, on a cash basis. For the three months and year ended December 31, 2020, Merian had total consolidated Additions to property, plant and mine development of $15 and $41, respectively, on a cash basis.

(3)

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

Costs applicable to sales per ounce/gold equivalent ounce

Costs applicable to sales per ounce/gold equivalent ounce are non-GAAP financial measures. These measures are calculated by dividing the costs applicable to sales of gold and other metals by gold ounces or gold equivalent ounces sold, respectively. These measures are calculated for the periods presented on a consolidated basis. Costs applicable to sales per ounce/gold equivalent ounce statistics are intended to provide additional information only and do not have any standardized meaning prescribed by GAAP and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP. The measures are not necessarily indicative of operating profit or cash flow from operations as determined under GAAP. Other companies may calculate these measures differently.

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

Costs applicable to sales per ounce

 

Three Months Ended
December 31,

 

Year Ended
December 31,

 

2021

 

2020

 

2021

 

2020

Costs applicable to sales (1)(2)

$

1,297

 

$

1,198

 

$

4,628

 

$

4,408

Gold sold (thousand ounces)

 

1,620

 

 

 

1,621

 

 

 

5,897

 

 

 

5,831

 

Costs applicable to sales per ounce (3)

$

802

 

 

$

739

 

 

$

785

 

 

$

756

 

(1)

Includes by-product credits of $33 and $187 during the three months and year ended December 31, 2021, respectively, and $50 and $128 during the three months and year ended December 31, 2020, respectively.

(2)

Excludes Depreciation and amortization and Reclamation and remediation.

(3)

Per ounce measures may not recalculate due to rounding.

Costs applicable to sales per gold equivalent ounce

 

Three Months Ended
December 31,

 

Year Ended
December 31,

 

2021

 

2020

 

2021

 

2020

Costs applicable to sales (1)(2)

$

243

 

$

157

 

$

807

 

$

606

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

 

328

 

 

 

282

 

 

 

1,258

 

 

 

1,062

 

Costs applicable to sales per ounce (4)

$

739

 

 

$

561

 

 

$

640

 

 

$

571

 

(1)

Includes by-product credits of $2 and $7 during the three months and year ended December 31, 2021, respectively, and $— and $2 during the three months and year ended December 31, 2020, respectively.

(2)

Excludes Depreciation and amortization and Reclamation and remediation.

(3)

Gold equivalent ounces is calculated as pounds or ounces produced multiplied by the ratio of the other metals price to the gold price, using Gold ($1,200/oz.), Copper ($2.75/lb.), Silver ($22.00/oz.), Lead ($0.90/lb.) and Zinc ($1.05/lb.) pricing for 2021 and Gold ($1,200/oz.), Copper ($2.75/lb.), Silver ($16.00/oz.), Lead ($0.95/lb.) and Zinc ($1.20/lb.) pricing for 2020.

(4)

Per ounce measures may not recalculate due to rounding.​

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

 

Three Months Ended
December 31,

 

Year Ended
December 31,

 

2021

 

2020

 

2021

 

2020

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

$

286

 

$

251

 

$

960

 

$

1,012

Gold sold (thousand ounces), NGM

 

381

 

 

 

339

 

 

 

1,274

 

 

 

1,336

 

Costs applicable to sales per ounce, NGM (3)

$

753

 

 

$

739

 

 

$

755

 

 

$

757

 

(1)

See Note 4 to the Consolidated Financial Statements.

(2)

Excludes Depreciation and amortization and Reclamation and remediation.

(3)

Per ounce measures may not recalculate due to rounding.

All-In Sustaining Costs

Newmont has developed a metric that expands on GAAP measures, such as cost of goods sold, and non-GAAP measures, such as costs applicable to sales per ounce, to provide visibility into the economics of our mining operations related to expenditures, operating performance and the ability to generate cash flow from our continuing operations.

Current GAAP measures used in the mining industry, such as cost of goods sold, do not capture all of the expenditures incurred to discover, develop and sustain production. Therefore, we believe that all-in sustaining costs is a non-GAAP measure that provides additional information to management, investors and analysts that aid in the understanding of the economics of our operations and performance compared to other producers and provides investors visibility by better defining the total costs associated with production.

All-in sustaining cost (“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 (i.e. non-sustaining) activities based upon each company’s internal policies.

The following disclosure provides information regarding the adjustments made in determining the all-in sustaining costs measure:

Costs applicable to sales. Includes all direct and indirect costs related to current production incurred to execute the current mine plan. We exclude certain exceptional or unusual amounts from 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 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 Consolidated Statements of Operations less the amount of CAS attributable to the production of other metals. The other metals' CAS at those mine sites is disclosed in Note 4 to the Consolidated Financial Statements. The allocation of CAS between gold and other metals is based upon the relative sales value of gold and other metals produced during the period.

Reclamation costs. Includes accretion expense related to reclamation liabilities and the amortization of the related 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 other metals is determined using the same allocation used in the allocation of CAS between gold and other metals.

Advanced projects, research and development and exploration. Includes incurred expenses related to projects that are designed to sustain current production and exploration. We note that as current 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 to sustain production at existing operations. As these costs relate to sustaining our production, and are considered a continuing cost of a mining company, these costs are included in the AISC measure. These costs are derived from the Advanced projects, research and development and Exploration amounts presented in the Consolidated Statements of Operations less incurred expenses related to the development of new operations, or related to major projects at existing operations where these projects will materially benefit the operation in the future. The allocation of these costs to gold and other metals is determined using the same allocation used in the allocation of CAS between gold and other metals. We also allocate these costs incurred at the Other North America, Other Australia and Corporate and Other locations using the proportion of CAS between gold and other metals.

General and administrative. Includes costs related to administrative tasks not directly related to current production, but rather related to 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. We allocate these costs to gold and other metals at the Other North America, Other Australia and Corporate and Other locations using the proportion of CAS between gold and other metals.

Care and maintenance and Other expense, net. Care and maintenance primarily includes direct operating costs incurred at the mine sites during the period that these sites were temporarily placed into care and maintenance in response to the COVID-19 pandemic. For Other expense, net we exclude certain exceptional or unusual expenses, 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 other metals is determined using the same allocation used in the allocation of CAS between gold and other metals.

Treatment and refining costs. Includes costs paid to smelters for treatment and refining of our concentrates to produce the salable metal. These costs are presented net as a reduction of Sales on our Consolidated Statements of Operations. The allocation of these costs to gold and other metals is determined using the same allocation used in the allocation of CAS between gold and other metals.

Sustaining capital and finance lease payments. We determined sustaining capital and finance lease payments as those capital expenditures and finance lease payments that are necessary to maintain current production and execute the current mine plan. We determined development (i.e. non-sustaining) capital expenditures and finance lease payments to be those payments used to develop new operations or related to projects at existing operations where those projects will materially benefit the operation and are excluded from the calculation of AISC. The classification of sustaining and development capital projects and finance leases is based on a systematic review of our project portfolio in light of the nature of each project. Sustaining capital and finance lease payments are relevant to the AISC metric as these are needed to maintain the Company’s current operations and provide improved transparency related to our ability to finance these expenditures from current operations. The allocation of these costs to gold and other metals is determined using the same allocation used in the allocation of CAS between gold and other metals. We also allocate these costs incurred at the Other North America, Other Australia and Corporate and Other locations using the proportion of CAS between gold and other metals.

Three Months Ended
December 31, 2021

Costs
Applicable
to
Sales(1)(2)(3)

 

Reclamation
Costs(4)

 

Advanced
Projects,
Research and
Development
and
Exploration(5)

 

General and
Administrative

 

Other
Expense,
Net(6)(7)

 

Treatment
and
Refining
Costs

 

Sustaining
Capital and
Lease
Related
Costs(8)(9)

 

All-In
Sustaining
Costs

 

Ounces
(000)
Sold

All-In
Sustaining
Costs Per
oz.(10)

Gold

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CC&V

$

71

 

$

2

 

$

2

 

 

$

 

$

 

 

$

 

$

6

 

$

81

 

 

52

 

$

1,553

Musselwhite

 

43

 

 

 

1

 

 

 

2

 

 

 

 

 

 

 

 

 

 

 

 

11

 

 

 

57

 

 

45

 

 

 

1,260

 

Porcupine

 

73

 

 

 

1

 

 

 

2

 

 

 

 

 

 

 

 

 

 

 

 

12

 

 

 

88

 

 

75

 

 

 

1,175

 

Éléonore

 

59

 

 

 

1

 

 

 

 

 

 

 

 

 

1

 

 

 

 

 

 

16

 

 

 

77

 

 

61

 

 

 

1,265

 

Peñasquito

 

117

 

 

 

1

 

 

 

 

 

 

 

 

 

2

 

 

 

7

 

 

 

19

 

 

 

146

 

 

179

 

 

 

821

 

Other North America

 

 

 

 

 

 

 

 

 

 

2

 

 

 

2

 

 

 

 

 

 

 

 

 

4

 

 

 

 

 

 

North America

 

363

 

 

 

6

 

 

 

6

 

 

 

2

 

 

 

5

 

 

 

7

 

 

 

64

 

 

 

453

 

 

412

 

 

 

1,100

 

 

 

 

 

 

 

 

 

 

 

 

 

Yanacocha

 

58

 

 

 

10

 

 

 

3

 

 

 

 

 

 

5

 

 

 

 

 

 

8

 

 

 

84

 

 

67

 

 

 

1,268

 

Merian

 

82

 

 

 

1

 

 

 

 

 

 

 

 

 

1

 

 

 

 

 

 

18

 

 

 

102

 

 

112

 

 

 

920

 

Cerro Negro

 

80

 

 

 

2

 

 

 

(2

)

 

 

 

 

 

7

 

 

 

 

 

 

19

 

 

 

106

 

 

78

 

 

 

1,365

 

Other South America

 

 

 

 

 

 

 

1

 

 

 

3

 

 

 

 

 

 

 

 

 

 

 

 

4

 

 

 

 

 

 

South America

 

220

 

 

 

13

 

 

 

2

 

 

 

3

 

 

 

13

 

 

 

 

 

 

45

 

 

 

296

 

 

257

 

 

 

1,158

 

 

 

 

 

 

 

 

 

 

 

 

 

Boddington

 

163

 

 

 

3

 

 

 

2

 

 

 

 

 

 

 

 

 

3

 

 

 

9

 

 

 

180

 

 

183

 

 

 

998

 

Tanami

 

74

 

 

 

1

 

 

 

2

 

 

 

 

 

 

2

 

 

 

 

 

 

32

 

 

 

111

 

 

146

 

 

 

757

 

Other Australia

 

 

 

 

 

 

 

 

 

 

2

 

 

 

 

 

 

 

 

 

2

 

 

 

4

 

 

 

 

 

 

Australia

 

237

 

 

 

4

 

 

 

4

 

 

 

2

 

 

 

2

 

 

 

3

 

 

 

43

 

 

 

295

 

 

329

 

 

 

904

 

 

 

 

 

 

 

 

 

 

 

 

Ahafo

 

129

 

 

 

2

 

 

 

1

 

 

 

 

 

 

 

 

 

 

 

 

24

 

 

 

156

 

 

149

 

 

 

1,038

 

Akyem

 

62

 

 

 

9

 

 

 

2

 

 

 

 

 

 

 

 

 

 

 

 

15

 

 

 

88

 

 

92

 

 

 

950

 

Other Africa

 

 

 

 

 

 

 

1

 

 

 

2

 

 

 

1

 

 

 

 

 

 

 

 

 

4

 

 

 

 

 

 

Africa

 

191

 

 

 

11

 

 

 

4

 

 

 

2

 

 

 

1

 

 

 

 

 

 

39

 

 

 

248