Newmont Reports Second Quarter 2023 Results; Remains on Track to Achieve Full Year Guidance*; Declares $0.40 Second Quarter Dividend

July 20, 2023

DENVER--(BUSINESS WIRE)-- Newmont Corporation (NYSE: NEM, TSX: NGT) (Newmont or the Company) today announced second quarter 2023 results and declared a second quarter dividend of $0.40 per share.

Second Quarter Decisions Position Newmont for a Strong Second Half Performance

  • Produced 1.24 million attributable gold ounces and 256 thousand co-product gold equivalent ounces (GEOs)** from copper, silver, lead and zinc; well positioned for stronger production in the second half of the year
  • Reported gold Costs Applicable to Sales (CAS) of $1,054 per ounce and gold All-In Sustaining Costs (AISC) of $1,472 per ounce***; impacted by lower production volumes; costs expected to decrease in the second half of the year
  • On track to achieve full-year guidance of between 5.7 and 6.3 million ounces of attributable gold production with Gold AISC between $1,150 and $1,250 per ounce; primarily driven by increased production at Ahafo, Tanami, Cerro Negro, Akyem and the two non-managed joint ventures at Nevada Gold Mines and Pueblo Viejo
  • Generated $656 million of cash from continuing operations and reported $40 million of Free Cash Flow***;impacted by higher sustaining and development capital spend as we continue to reinvest for the future
  • Reported Net Income of $155 million, with Adjusted Net Income (ANI)*** of $0.33 per diluted share and Adjusted EBITDA*** of $910 million; prioritizing safety, long-term value and positioning for stronger second half results
  • Ended the quarter with $2.8 billion of consolidated cash, $374 million of short-term time deposits and $6.2 billion of liquidity; reported net debt to adjusted EBITDA ratio of 0.7x***
  • Entered into a definitive agreement to acquire Newcrest Mining Limited ("Newcrest"); transaction is expected to close in the fourth quarter, subject to customary conditions, including shareholder approval
  • Progressed portfolio optimization through the deferral of the investment decision for the Yanacocha Sulfides project by at least two years
  • Published 3rd Annual Climate Report; outlining how Newmont understands and is addressing climate change

Second Quarter Dividend Declared Within Established Framework****

  • Board of Directors declared a dividend of $0.40 per share of common stock for the second quarter of 2023; payable on September 21, 2023 to holders of record at the close of business on September 7, 2023
  • Annualized dividend payout range for 2023 of $1.40 to $1.80 per share****; subject to quarterly approval by Board of Directors
  • Based on a sustainable base dividend of $1.00 per share payable at base reserves price and an incremental dividend payout of $0.60 per share; second quarter dividend payout calibrated at the mid-point of the $1,700 per ounce annualized payout range

"In the second quarter, Newmont delivered $910 million in adjusted EBITDA with a disciplined approach to running a safe and sustainable mining business to generate long-term value. Our business is underpinned by the industry's strongest balance sheet and a global portfolio with the size and scale to make decisions that deliver on our strategy. We remain on track to achieve our full-year guidance, and I am proud of the prudent decisions made during the second quarter to safeguard our workforce, protect long-term value and position Newmont to deliver a strong performance in the second half of the year."

- Tom Palmer, Newmont President and Chief Executive Officer

*See discussion of outlook and cautionary statement at the end of this release regarding forward-looking statements and withdrawal of 2023 guidance related to Peñasquito.

**Gold equivalent ounces (GEOs) calculated using Gold ($1,400/oz.), Copper ($3.50/lb.), Silver ($20.00/oz.), Lead ($1.00/lb.) and Zinc ($1.20/lb.) pricing for 2023.

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

****Expectations regarding 2023 dividend levels are forward-looking statements. The dividend framework is non-binding and an annualized dividend has not been declared by the Board. The declaration and payment of future quarterly dividends remains at the discretion of the Board of Directors and will depend on the Company’s financial results, cash flow and cash requirements, future prospects, and other factors deemed relevant by the Board. See cautionary statement at the end of this release.

Summary of Second Quarter Results

 

Q2'23

Q1'23

Q2'22

Average realized gold price ($ per ounce)

$

1,965

$

1,906

 

$

1,836

Attributable gold production (million ounces)1

 

1.24

 

 

1.27

 

 

1.50

 

Gold costs applicable to sales (CAS) ($ per ounce)2

$

1,054

 

$

1,025

 

$

932

 

Gold all-in sustaining costs (AISC) ($ per ounce)2

$

1,472

 

$

1,376

 

$

1,199

 

GAAP net income (loss) from continuing operations ($ millions)

$

153

 

$

339

 

$

379

 

Adjusted net income ($ millions)3

$

266

 

$

320

 

$

362

 

Adjusted net income per share ($/diluted share)3

$

0.33

 

$

0.40

 

$

0.46

 

Adjusted EBITDA ($ millions)3

$

910

 

$

990

 

$

1,149

 

Cash flow from continuing operations ($ millions)

$

656

 

$

481

 

$

1,033

 

Capital expenditures ($ millions)4

$

616

 

$

526

 

$

519

 

Free cash flow ($ millions)5

$

40

 

$

(45

)

$

514

 

PRUDENT DECISIONS IN THE SECOND QUARTER TO GENERATE LONG-TERM VALUE

In the second quarter, Newmont made the following key decisions to protect its workforce, generate long-term value and drive a strong performance in the second half of the year:

  • Peñasquito - In June, Newmont suspended operations at the site to focus on finding an appropriate and sustainable resolution to the dispute with the leadership of the National Union of Mine and Metal Workers of the Mexican Republic (“the Union”).
  • Éléonore - In June, Newmont evacuated and temporarily shut down the site to protect its workforce from the unprecedented wildfires in Canada.
  • Cerro Negro - In May, Newmont paused mining to complete important inspections for the safety and wellbeing of its workforce.
  • Akyem - In the second quarter, Newmont processed low-grade stockpiles originally planned for the fourth quarter and optimized the mine plan to safely extract the maximum amount of ore from the pit.

Direct operating costs remained largely consistent with the first quarter as inflation pressures continued to stabilize, with improvements to pricing on energy, fuel and commodities, as well lower direct costs as a result of the suspension of operations at Peñasquito. In addition, AISC was higher due to higher sustaining capital during the second quarter compared to the first quarter, driven by the timing of spend at Boddington, Musselwhite and Ahafo. Peñasquito incurred $23 million of operating costs and $15 million of depreciation and amortization due to the suspension of operations. In addition, Éléonore incurred $6 million of operating costs and $2 million of depreciation and amortization while the site was evacuated due to the wildfires in Canada. These costs have not been adjusted from Newmont's Non-GAAP financial metrics for the second quarter.

Cash flow from continuing operations was $656 million, which was favorable compared to the first quarter, primarily driven by lower impacts from working capital changes as higher cash tax payments of $246 million were largely offset by favorable change in accounts receivable. In addition, Newmont reinvested $616 million in capital spend, including $236 million in development capital spend to continue to progress near-term projects and $380 million in sustaining capital to progress site improvement projects, such as upgrading camp conditions at Musselwhite and the addition of five new autonomous haulage trucks at Boddington to advance stripping in the North and South Pits.

WELL-POSITIONED TO DELIVER A STRONG PERFORMANCE IN THE SECOND HALF OF 2023

Production remains weighted to the second half of the year as previously guided, with improving costs expected through the remainder of the year, driven by the following sites:

  • Ahafo is expected to reach higher grade and tonnes mined from Subika Underground with access to the third mining level and additional draw points, in addition to higher ore tonnes mined and improved grade at the Subika Open Pit. The site is on track to commission the replacement conveyor in the third quarter.
  • Cerro Negro is expected to improve productivity and reach higher grade stopes from the first wave of the Cerro Negro District Expansions. In the second quarter, first ore was mined from San Marcos, the first of six new deposits.
  • Tanami is expected to deliver higher tonnes mined and processed and reach the year’s highest grades during the fourth quarter.
  • Akyem is expected to deliver higher grade tonnes in the second half of the year following the decision to optimize the mine plan for safety and productivity in the second quarter.
  • Nevada Gold Mines and Pueblo Viejo are both expected to be weighted strongly toward the second half of the year.

SECOND QUARTER 2023 FINANCIAL AND PRODUCTION SUMMARY

Attributable gold production1 decreased 17 percent to 1,240 thousand ounces from the prior year quarter primarily due to lower production at Peñasquito, Akyem, Merian, Cerro Negro and Boddington. In addition, lower than planned production was delivered from the non-managed joint venture at Pueblo Viejo. Attributable gold sales were largely in line with gold production for the quarter.

Gold CAS totaled $1.3 billion for the quarter. Gold CAS per ounce2 increased 13 percent to $1,054 per ounce from the prior year quarter primarily due to lower gold sales volumes. This unfavorable impact was partially offset by the charges recognized in the second quarter of 2022 related to 2021 site performance for the Peñasquito Profit-Sharing Agreement, as well as lower energy, materials and contracted services costs at Peñasquito while operations were suspended in the second quarter of 2023.

Gold AISC per ounce2 increased 23 percent to $1,472 per ounce from the prior year quarter primarily due to higher CAS per gold ounce and higher sustaining capital spend.

Attributable gold equivalent ounce (GEO) production from other metals decreased 22 percent to 256 thousand ounces primarily due to the suspension of operations at Peñasquito. Attributable GEO sales were largely in line with production for the quarter.

CAS from other metals totaled $266 million for the quarter. CAS per GEO2 increased 8 percent to $1,062 per ounce from the prior year quarter primarily due to lower other metal sales at Peñasquito as a result of suspension of operations during the second quarter. This unfavorable impact was partially offset by lower energy, materials and contracted services costs at Peñasquito while operations were suspended.

AISC per GEO2 increased 16 percent to $1,492 per ounce primarily due to higher CAS per GEO and higher sustaining capital spend.

Average realized gold price was $1,965, an increase of $129 per ounce over the prior year quarter. Average realized gold price includes $1,974 per ounce of gross price received, an unfavorable impact of $1 per ounce mark-to-market on provisionally-priced sales and reductions of $8 per ounce for treatment and refining charges.

Revenue decreased 12 percent from the prior year quarter to $2.7 billion primarily due to lower gold and silver sales volumes, partially offset by higher average realized prices for all metals except zinc.

Net income from continuing operations attributable to Newmont stockholders was $153 million or $0.19 per diluted share, a decrease of $226 million from the prior year quarter primarily due to lower sales volumes and higher income tax expense. These decreases were partially offset by lower CAS and a decrease in unrealized losses on marketable and other equity securities.

Adjusted net income3was $266 million or $0.33 per diluted share,compared to $362 million or $0.46 per diluted share in the prior year quarter. Primary adjustments to second quarter net income include changes in the fair value of investments of $42 million, Newcrest transaction costs of $21 million and restructuring and severance costs of $10 million, as well as valuation allowance and other tax adjustments.

Adjusted EBITDA3 decreased 21 percent to $0.9 billion for the quarter, compared to $1.1 billion for the prior year quarter.

Capital expenditures4 increased 19 percent from the prior year quarter to $616 million primarily due to higher sustaining capital spend. Development capital expenditures in 2023 primarily relate to Tanami Expansion 2, Ahafo North, Yanacocha Sulfides, Pamour and Cerro Negro District Expansion 1.

Consolidated operating cash flow from continuing operations decreased 36 percent from the prior year quarter to $656 million primarily due to a decrease in revenue due to lower sales volumes, a decrease in the fair value of investments and a build-up of inventory compared to the same period in 2022, primarily at Peñasquito.

Free Cash Flow5decreased to $40 million from $514 million in the prior year quarter primarily due to lower operating cash flow and higher capital expenditures.

Balance sheet and liquidity remained strong in the second quarter, ending the quarter with $2.8 billion of consolidated cash and $374 million of time deposits with a maturity of more than three months but less than one year, with approximately $6.2 billion of total liquidity; reported net debt to adjusted EBITDA of 0.7x6.

Nevada Gold Mines (NGM) attributable gold production was 287 thousand ounces, with CAS of $1,055 per ounce2 and AISC of $1,388 per ounce2 for the second quarter. NGM EBITDA6 was $245 million.

Pueblo Viejo (PV) attributable gold production was 51 thousand ounces for the quarter. Cash distributions received for the Company's equity method investment in Pueblo Viejo totaled $40 million in the second quarter. Capital contributions of $22 million were made during the quarter related to the expansion project at Pueblo Viejo.

_________________________

1 Attributable gold production includes 51 thousand ounces for the second quarter of 2023, 60 thousand ounces for the first quarter of 2023 and 70 thousand ounces for the second quarter of 2022 from the Company’s equity method investment in Pueblo Viejo (40%).

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

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

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

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

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

Progressing Profitable Near-Term Projects from Unmatched Organic Pipeline

Newmont’s project pipeline supports stable production with improving margins and mine lives1. Newmont's 2023 and longer-term outlook includes current development capital costs and production related to Tanami Expansion 2, Ahafo North, Pamour and Cerro Negro District Expansion 1. Longer-term development capital outlook has been updated to reflect the deferral of the investment decision for the Yanacocha Sulfides project, which has reduced expected capital spend by $300 million in 2024. Additional development capital spend and all metal production for Yanacocha Sulfides has been excluded from longer-term outlook until an investment decision has been reached.

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 by extending mine life beyond 2040 through the addition of a 1,460 meter hoisting shaft and supporting infrastructure to process 3.3 million tonnes per year and provide a platform for future growth. The expansion is expected to increase average annual gold production by approximately 150,000 to 200,000 ounces per year for the first five years and reduce operating costs by approximately 10 percent, bringing average all-in sustaining costs to $900 to $1,000 per ounce for Tanami (2026-2030). Commercial production for the project is expected in the second half of 2025. Total capital costs are estimated to be between $1.2 and $1.3 billion. Development costs (excluding capitalized interest) since approval were $617 million, of which $118 million related to the six months ended June 30, 2023.
  • 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 of $800 to $900 per ounce for the first five full years of production. Ahafo North is the best unmined gold deposit in West Africa with approximately 3.8 million ounces of Reserves and 1.4 million ounces of Measured, Indicated and Inferred Resources2 and significant upside potential to extend beyond Ahafo North’s current 13-year mine life. Commercial production for the project is expected in the second half of 2025. Total capital costs are estimated to be between $950 and $1,050 million. Development costs (excluding capitalized interest) since approval were $283 million, of which $71 million related to the six months ended June 30, 2023.
  • Pamour (North America) extends the life of Porcupine and maintains production beyond 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 late 2023 as opportunities have been identified to extend production from current operations, allowing for a deferral of project spending. Formal updates to capital estimates and estimated project completion will be provided closer to the investment decision.
  • 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 and provides a platform for further exploration and future growth through additional expansions. Development capital costs for the project are estimated to be between $350 and $450 million.
  • Yanacocha Sulfides (South America) has been deferred for at least two years from the previously planned investment decision date in 2024, representing the first step to Newmont delivering on its portfolio optimization strategy. Development capital spend guidance for 2024 has been updated to reflect the reduced spend of $300 million. Yanacocha Sulfides 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 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.

_________________________

1 Project estimates remain subject to change based upon uncertainties, including future market conditions, macroeconomic and geopolitical conditions, changes in interest rates, inflation, commodities and raw materials prices, supply chain disruptions, labor markets, engineering and mine plan assumptions, future funding decisions, consideration of strategic capital allocation and other factors, which may impact estimated capital expenditures, AISC and timing of projects. See end of this release for cautionary statement regarding forward-looking statements.

2 Total resources presented for Ahafo North includes Measured and Indicated resources of 910 thousand gold ounces and Inferred resources of 490 thousand gold ounces. See cautionary statement at the end of this release.

2023 Outlook Remains Second-Half Weighted

Newmont’s outlook reflects increasing gold production and ongoing investment into its operating assets and most promising growth prospects. Newmont's reserves and mine planning gold price assumption has been set at $1,400 per ounce. 2023 outlook assumes a $1,700 per ounce revenue gold price for CAS and AISC, including royalties and production taxes. For 2023, Newmont has assumed normalizing levels of inflation, improving throughout the year, with a year-over-year average escalation rate of approximately 3 percent.

Outlook includes development capital, costs and production related to Tanami Expansion 2, Ahafo North, Pamour and Cerro Negro District Expansion 1. Longer-term development capital outlook has been updated to reflect the deferral of the investment decision for the Yanacocha Sulfides project, which has reduced expected capital spend by $300 million in 2024. Additional development capital spend and all metal production for Yanacocha Sulfides has been excluded from longer-term outlook until an investment decision has been reached.

Please see the cautionary statement and footnotes for additional information. For a more detailed discussion, see the Company’s 2023 and Longer-Term Outlook released on February 23, 2023, available on www.newmont.com.

FIVE YEAR OUTLOOK

Guidance Metrics

2023E

2024Ea

2025E

2026E

2027E

Gold ($1,700/oz price assumption)

 

 

 

 

 

Attributable Gold Production (Moz)

5.7 - 6.3

5.9 - 6.5

5.9 - 6.5

6.1 - 6.7

6.1 - 6.7

Gold CAS ($/oz)*

$870 - $970

$850 - $950

$780 - $880

$750 - $850

$750 - $850

Gold AISC ($/oz)*

$1,150 - $1,250

$1,100 - $1,200

$1,000 - $1,100

$1,000 - $1,100

$1,000 - $1,100

Copper ($3.50/lb price assumption)

 

 

 

 

 

Copper Production (Mlb)

95 - 105

85 - 95

45 - 55

45 - 55

55 - 65

Copper CAS ($/lb)*

$1.85 - $2.15

 

 

 

 

Copper AISC ($/lb)*

$2.35 - $2.65

 

 

 

 

Silver ($20/oz price assumption)

 

 

 

 

 

Silver Production (Moz)

31 - 35

32 - 36

35 - 39

28 - 32

30 - 34

Silver CAS ($/oz)*

$11.10 - $12.10

 

 

 

 

Silver AISC ($/oz)*

$15.50 - $16.50

 

 

 

 

Lead ($0.90/lb price assumption)

 

 

 

 

 

Lead Production (Mlb)

170 - 190

190 - 210

210 - 230

160 - 180

250 - 270

Lead CAS ($/lb)*

$0.55 - $0.65

 

 

 

 

Lead AISC ($/lb)*

$0.70 - $0.80

 

 

 

 

Zinc ($1.35/lb price assumption)

 

 

 

 

 

Zinc Production (Mlb)

420 - 460

550 - 590

580 - 620

460 - 500

400 - 440

Zinc CAS ($/lb)*

$0.65 - $0.75

 

 

 

 

Zinc AISC ($/lb)*

$1.05 - $1.15

 

 

 

 

Capital

 

 

 

 

 

Sustaining Capital**

$1,000 - $1,200

$1,000 - $1,200

$1,000 - $1,200

$1,000 - $1,200

$1,000 - $1,200

Development Capital**

$1,200 - $1,400

$900 - $1,100

$800 - $1,000

$500 - $700

$300 - $500

*Consolidated basis; **Attributable basis

a In the second quarter of 2023, Newmont announced the decision to defer the investment decision for the Yanacocha Sulfides project for at least two years from the previously planned decision date in 2024. Development capital outlook has been updated for 2024 to reflect the related $300 million reduction in capital spend. Additional development capital spend and all metal production for Yanacocha Sulfides has been excluded from longer-term outlook until an investment decision has been reached.

CONSOLIDATED EXPENSE OUTLOOK

Guidance Metric ($M)

2023E

Exploration & Advanced Projects

$475 - $525

General & Administrative

$260 - $290

Interest Expense

$200 - $220

Depreciation & Amortization

$2,200 - $2,400

Adjusted Tax Rate a,b

32% - 36%

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

b Assuming average prices of $1,700 per ounce for gold, $3.50 per pound for copper, $20.00 per ounce for silver, $0.90 per pound for lead, and $1.35 per pound for zinc and achievement of current production, sales and cost estimates, we estimate our consolidated adjusted effective tax rate related to continuing operations for 2023 will be between 32%-36%.

ASSUMPTIONS AND SENSITIVITIES

 

Assumption

Change (-/+)

FCF Impact ($M)
(+/-)

AISC Impact ($/oz)
(-/+)

Gold ($/oz)

$1,700

$100

$400

$5

Australian Dollar

$0.70

$0.05

$60

$15

Canadian Dollar

$0.77

$0.05

$35

$10

Oil ($/bbl)

$90

$10

$20

$5

Copper ($/lb)

$3.50

$0.25

$15

$—

Silver ($/oz)

$20.00

$1.00

$15

$2

Lead ($/lb)

$0.90

$0.10

$10

$—

Zinc ($/lb)

$1.35

$0.10

$30

$—

Assuming a 35% incremental tax rate, a $100 per ounce increase in gold price would deliver an expected $400 million improvement in attributable free cash flow. Included within the attributable free cash flow sensitivity is a royalty and production tax impact of $5 per ounce for every $100 per ounce change in gold price.

2023 OPERATING COSTS BY CATEGORY

 

Percent of Total*

Change in Cost
(-/+)

FCF Impact ($M)
(+/-)

AISC Impact ($/oz)
(-/+)

Labor Costs

50%

5%

$90

$25

Materials & Consumables

30%

5%

$50

$15

Fuel & Energy

15%

5%

$30

$10

*"Other” category of 5% primarily includes freight, technology-related costs, employee administrative costs, rents and operating leases.

2023 Site Outlook a

2023 Outlook

Consolidated
Production (Koz)

Attributable
Production (Koz)

Consolidated
CAS ($/oz)

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

Attributable
Sustaining Capital
Expenditures ($M)

Attributable
Development
Capital
Expenditures ($M)

 

 

 

 

 

 

 

CC&V

160 - 180

160 - 180

1,150 - 1,250

1,580 - 1,680

25 - 35

Musselwhite

200 - 220

200 - 220

860 - 960

1,290 - 1,390

65 - 75

Porcupine

285 - 315

285 - 315

950 - 1,050

1,250 - 1,350

45 - 55

100 - 120

Éléonore

265 - 295

265 - 295

960 - 1,060

1,300 - 1.400

55 - 65

Peñasquito (withdrawn)c

[330 - 370]

[330 - 370]

[840 - 940]

[1,110 - 1,210]

[135 - 145]

Meriand

315 - 345

235 - 265

980 - 1,080

1,230 - 1,330

35 - 45

Cerro Negro

315 - 345

315 - 345

850 - 950

1,060 - 1,160

45 - 55

110 - 130

Yanacocha

255 - 285

255 - 285

1,370 - 1,470

1,620 - 1,720

25 - 35

320 - 360

Boddington

740 - 820

740 - 820

800 - 900

960 - 1,060

95 - 105

Tanami

420 - 460

420 - 460

770 - 870

1,130 - 1,230

115 - 125

340 - 380

Ahafo

675 - 745

675 - 745

850 - 950

1,010 - 1,110

75 - 85

5 - 15

Akyem

315 - 345

315 - 345

850 - 950

1,110 - 1,210

25 - 35

Ahafo North

245 - 275

 

 

 

 

 

 

 

Nevada Gold Minese

1,190 - 1,310

1,190 - 1,310

850 - 950

1,150 - 1,250

250 - 350

50 - 150

Pueblo Viejof

315 - 345

 

 

 

 

 

 

 

Peñasquito - Silver (Moz) (withdrawn)c

[31 - 35]

[31 - 35]

[11.10 - 12.10]

[15.50 - 16.50]

 

 

Peñasquito - Lead (Mlbs) (withdrawn)c

[170 - 190]

[170 - 190]

[0.55 - 0.65]

[0.70 - 0.80]

 

 

Peñasquito - Zinc (Mlbs) (withdrawn)c

[420 - 460]

[420 - 460]

[0.65 - 0.75]

[1.05 - 1.15]

 

 

Boddington - Copper (Mlbs)

95 - 105

95 - 105

1.85 - 2.15

2.35 - 2.65

 

 

a 2023 outlook projections are considered forward-looking statements and represent management’s good faith estimates or expectations of future production results as of February 23, 2023. Outlook is based upon certain assumptions, including, but not limited to, metal prices, oil prices, certain exchange rates and other assumptions. For example, 2023 Outlook assumes $1,700/oz Au, $3.50/lb Cu, $20.00/oz Ag, $1.35/lb Zn, $0.90/lb Pb, $0.70 USD/AUD exchange rate, $0.77 USD/CAD exchange rate and $90/barrel WTI. Production, CAS, AISC and capital estimates exclude projects that have not yet been approved, except for Pamour and Cerro Negro District Expansion 1 which are included in Outlook. Additional development capital spend beyond 2023 and all metal production and costs for Yanacocha Sulfides have been excluded from longer-term outlook until an investment decision has been reached. The potential impact on inventory valuation as a result of lower prices, input costs, and project decisions are not included as part of this Outlook. Assumptions used for purposes of Outlook may prove to be incorrect and actual results may differ from those anticipated, including variation beyond a +/-5% range. Outlook cannot be guaranteed. As such, investors are cautioned not to place undue reliance upon Outlook and forward-looking statements as there can be no assurance that the plans, assumptions or expectations upon which they are placed will occur. Amounts may not recalculate to totals due to rounding. See cautionary statement 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 2023 CAS outlook.

c On June 7, 2023, the Company suspended operations following a strike action by the National Union of Mine and Metal Workers of the Mexican Republic ("the Union"). As a result, the Company is withdrawing its full-year 2023 guidance for Peñasquito. The Company cannot estimate when the strike will be resolved and will reassess Peñasquito's full-year 2023 guidance once a resolution has been reached. As a result, investors are cautioned not to rely upon Peñasquito guidance estimates.

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

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

 

Three Months Ended June 30,

 

Six Months Ended June 30,

Operating Results

2023

2022

% Change

 

2023

2022

% Change

Attributable Sales (koz)

 

 

 

 

 

 

 

Attributable gold ounces sold (1)

 

1,197

1,455

(18

)%

 

 

2,385

 

2,746

(13

)%

Attributable gold equivalent ounces sold

 

251

333

(25

)%

 

 

516

 

683

(24

)%

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

Average realized gold price

$

1,965

$1,836

7

%

 

$

1,936

$

1,863

4

%

Average realized copper price

$

3.26

$2.99

9

%

 

$

3.73

$

3.81

(2

)%

Average realized silver price

$

20.56

$17.42

18

%

 

$

19.85

$

18.85

5

%

Average realized lead price

$

0.92

$0.80

15

%

 

$

0.89

$

0.94

(5

)%

Average realized zinc price

$

0.73

$1.08

(32

)%

 

$

0.96

$

1.47

(35

)%

 

 

 

 

 

 

 

 

Attributable Production (koz)

 

 

 

 

 

 

 

CC&V

 

41

43

(5

)%

 

 

89

 

78

14

%

Musselwhite

 

41

39

5

%

 

 

82

 

71

15

%

Porcupine

 

60

68

(12

)%

 

 

126

 

127

(1

)%

Éléonore

 

48

45

7

%

 

 

114

 

91

25

%

Peñasquito

 

38

121

(69

)%

 

 

123

 

258

(52

)%

Merian (75%)

 

40

71

(44

)%

 

 

102

 

147

(31

)%

Cerro Negro

 

48

74

(35

)%

 

 

115

 

142

(19

)%

Yanacocha (2)

 

65

65

%

 

 

121

 

119

2

%

Boddington

 

209

233

(10

)%

 

 

408

 

415

(2

)%

Tanami

 

126

133

(5

)%

 

 

189

 

233

(19

)%

Ahafo

 

137

135

1

%

 

 

265

 

242

10

%

Akyem

 

49

108

(55

)%

 

 

120

 

199

(40

)%

Nevada Gold Mines

 

287

290

(1

)%

 

 

548

 

578

(5

)%

Total Gold (excluding equity method investments)

 

1,189

1,425

(17

)%

 

 

2,402

 

2,700

(11

)%

Pueblo Viejo (40%) (3)

 

51

70

(27

)%

 

 

111

 

139

(20

)%

Total Gold

 

1,240

1,495

(17

)%

 

 

2,513

 

2,839

(11

)%

 

 

 

 

 

 

 

 

Peñasquito

 

189

266

(29

)%

 

 

413

 

565

(27

)%

Boddington

 

67

64

5

%

 

 

131

 

115

14

%

Total Gold Equivalent Ounces

 

256

330

(22

)%

 

 

544

 

680

(20

)%

 

 

 

 

 

 

 

 

CAS Consolidated ($/oz, $/GEO)

 

 

 

 

 

 

 

CC&V

$

1,186

$1,073

11

%

 

$

1,120

$

1,230

(9

)%

Musselwhite

$

1,356

$1,331

2

%

 

$

1,333

$

1,342

(1

)%

Porcupine

$

1,225

$1,062

15

%

 

$

1,146

$

1,077

6

%

Éléonore

$

1,477

$1,520

(3

)%

 

$

1,256

$

1,380

(9

)%

Peñasquito

$

831

$971

(14

)%

 

$

1,028

$

809

27

%

Merian (75%)

$

1,501

$972

54

%

 

$

1,212

$

906

34

%

Cerro Negro

$

1,655

$926

79

%

 

$

1,376

$

948

45

%

Yanacocha (2)

$

1,187

$1,058

12

%

 

$

1,134

$

1,022

11

%

Boddington

$

777

$753

3

%

 

$

809

$

781

4

%

Tanami

$

829

$631

31

%

 

$

866

$

644

34

%

Ahafo

$

910

$952

(4

)%

 

$

951

$

967

(2

)%

Akyem

$

1,087

$701

55

%

 

$

917

$

717

28

%

Nevada Gold Mines

$

1,055

$1,035

2

%

 

$

1,081

$

967

12

%

Total Gold

$

1,054

$ 932

13

%

 

$

1,040

$

912

14

%

Total Gold (by-product) (4)

$

1,024

$ 926

11

%

 

$

970

$

818

19

%

 

 

 

 

 

 

 

 

Peñasquito

$

1,162

$1,054

10

%

 

$

1,055

$

864

22

%

Boddington

$

766

$710

8

%

 

$

788

$

765

3

%

Total Gold Equivalent Ounces

$

1,062

$ 983

8

%

 

$

988

$

846

17

%

 

Three Months Ended June 30,

 

Six Months Ended June 30,

Operating Results (continued)

2023

2022

% Change

 

2023

2022

% Change

AISC Consolidated ($/oz, $/GEO)

 

 

 

 

 

 

 

CC&V

$

1,631

$

1,553

5

%

 

$

1,494

$

1,608

(7

)%

Musselwhite

$

2,254

$

1,693

33

%

 

$

1,955

$

1,670

17

%

Porcupine

$

1,587

$

1,328

20

%

 

$

1,498

$

1,313

14

%

Éléonore

$

2,213

$

1,922

15

%

 

$

1,756

$

1,734

1

%

Peñasquito

$

1,078

$

1,187

(9

)%

 

$

1,325

$

1,013

31

%

Merian (75%)

$

2,010

$

1,173

71

%

 

$

1,537

$

1,079

42

%

Cerro Negro

$

1,924

$

1,106

74

%

 

$

1,625

$

1,172

39

%

Yanacocha (2)

$

1,386

$

1,321

5

%

 

$

1,362

$

1,243

10

%

Boddington

$

966

$

854

13

%

 

$

1,000

$

888

13

%

Tanami

$

1,162

$

873

33

%

 

$

1,182

$

933

27

%

Ahafo

$

1,237

$

1,130

9

%

 

$

1,301

$

1,171

11

%

Akyem

$

1,461

$

837

75

%

 

$

1,220

$

884

38

%

Nevada Gold Mines

$

1,388

$

1,263

10

%

 

$

1,396

$

1,176

19

%

Total Gold

$

1,472

$

1,199

23

%

 

$

1,424

$

1,179

21

%

Total Gold (by-product) (4)

$

1,531

$

1,261

21

%

 

$

1,443

$

1,155

25

%

 

 

 

 

 

 

 

 

Peñasquito

$

1,581

$

1,347

17

%

 

$

1,463

$

1,138

29

%

Boddington

$

977

$

818

19

%

 

$

998

$

881

13

%

Total Gold Equivalent Ounces

$

1,492

$

1,286

16

%

 

$

1,405

$

1,138

23

%

(1)

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

(2)

The Company recognized amounts attributable to noncontrolling interest for Yanacocha during the period prior to acquiring Sumitomo Corporation's 5% interest in the second quarter of 2022.

(3)

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.

(4)

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

NEWMONT CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited, in millions except per share)

 

 

Three Months Ended
June 30,

 

Six Months Ended
June 30,

 

 

2023

 

 

 

2022

 

 

 

2023

 

 

 

2022

 

 

 

 

 

 

 

 

 

Sales

$

2,683

 

 

$

3,058

 

 

$

5,362

 

 

$

6,081

 

 

 

 

 

 

 

 

 

Costs and expenses:

 

 

 

 

 

 

 

Costs applicable to sales (1)

 

1,543

 

 

 

1,708

 

 

 

3,025

 

 

 

3,143

 

Depreciation and amortization

 

486

 

 

 

559

 

 

 

947

 

 

 

1,106

 

Reclamation and remediation

 

66

 

 

 

49

 

 

 

132

 

 

 

110

 

Exploration

 

66

 

 

 

62

 

 

 

114

 

 

 

100

 

Advanced projects, research and development

 

44

 

 

 

45

 

 

 

79

 

 

 

89

 

General and administrative

 

71

 

 

 

73

 

 

 

145

 

 

 

137

 

Other expense, net

 

41

 

 

 

22

 

 

 

49

 

 

 

57

 

 

 

2,317

 

 

 

2,518

 

 

 

4,491

 

 

 

4,742

 

Other income (expense):

 

 

 

 

 

 

 

Other income (loss), net

 

(17

)

 

 

(75

)

 

 

82

 

 

 

(184

)

Interest expense, net of capitalized interest

 

(49

)

 

 

(57

)

 

 

(114

)

 

 

(119

)

 

 

(66

)

 

 

(132

)

 

 

(32

)

 

 

(303

)

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

 

300

 

 

 

408

 

 

 

839

 

 

 

1,036

 

Income and mining tax benefit (expense)

 

(163

)

 

 

(33

)

 

 

(376

)

 

 

(247

)

Equity income (loss) of affiliates

 

16

 

 

 

17

 

 

 

41

 

 

 

56

 

Net income (loss) from continuing operations

 

153

 

 

 

392

 

 

 

504

 

 

 

845

 

Net income (loss) from discontinued operations

 

2

 

 

 

8

 

 

 

14

 

 

 

24

 

Net income (loss)

 

155

 

 

 

400

 

 

 

518

 

 

 

869

 

Net loss (income) attributable to noncontrolling interests

 

 

 

 

(13

)

 

 

(12

)

 

 

(34

)

Net income (loss) attributable to Newmont stockholders

$

155

 

 

$

387

 

 

$

506

 

 

$

835

 

 

 

 

 

 

 

 

 

Net income (loss) attributable to Newmont stockholders:

 

 

 

 

 

 

 

Continuing operations

$

153

 

 

$

379

 

 

$

492

 

 

$

811

 

Discontinued operations

 

2

 

 

 

8

 

 

 

14

 

 

 

24

 

 

$

155

 

 

$

387

 

 

$

506

 

 

$

835

 

 

 

 

 

 

 

 

 

Weighted average common shares (millions):

 

 

 

 

 

 

 

Basic

 

795

 

 

 

794

 

 

 

794

 

 

 

793

 

Effect of employee stock-based awards

 

 

 

 

1

 

 

 

1

 

 

 

2

 

Diluted

 

795

 

 

 

795

 

 

 

795

 

 

 

795

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

Basic:

 

 

 

 

 

 

 

Continuing operations

$

0.19

 

 

$

0.48

 

 

$

0.62

 

 

$

1.02

 

Discontinued operations

 

 

 

 

0.01

 

 

 

0.02

 

 

 

0.03

 

 

$

0.19

 

 

$

0.49

 

 

$

0.64

 

 

$

1.05

 

Diluted:

 

 

 

 

 

 

 

Continuing operations

$

0.19

 

 

$

0.48

 

 

$

0.62

 

 

$

1.02

 

Discontinued operations

 

 

 

 

0.01

 

 

 

0.02

 

 

 

0.03

 

 

$

0.19

 

 

$

0.49

 

 

$

0.64

 

 

$

1.05

 

(1)

Excludes Depreciation and amortization and Reclamation and remediation.

NEWMONT CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(unaudited, in millions)

 

 

At June 30,
2023

 

At December 31,
2022

ASSETS

 

 

 

Cash and cash equivalents

$

2,829

 

 

$

2,877

 

Time deposits and other investments

 

409

 

 

 

880

 

Trade receivables

 

185

 

 

 

366

 

Inventories

 

1,111

 

 

 

979

 

Stockpiles and ore on leach pads

 

858

 

 

 

774

 

Other current assets

 

742

 

 

 

639

 

Current assets

 

6,134

 

 

 

6,515

 

Property, plant and mine development, net

 

24,284

 

 

 

24,073

 

Investments

 

3,172

 

 

 

3,278

 

Stockpiles and ore on leach pads

 

1,737

 

 

 

1,716

 

Deferred income tax assets

 

166

 

 

 

173

 

Goodwill

 

1,971

 

 

 

1,971

 

Other non-current assets

 

669

 

 

 

756

 

Total assets

$

38,133

 

 

$

38,482

 

 

 

 

 

LIABILITIES

 

 

 

Accounts payable

$

565

 

 

$

633

 

Employee-related benefits

 

313

 

 

 

399

 

Income and mining taxes payable

 

155

 

 

 

199

 

Lease and other financing obligations

 

96

 

 

 

96

 

Other current liabilities

 

1,564

 

 

 

1,599

 

Current liabilities

 

2,693

 

 

 

2,926

 

Debt

 

5,574

 

 

 

5,571

 

Lease and other financing obligations

 

441

 

 

 

465

 

Reclamation and remediation liabilities

 

6,604

 

 

 

6,578

 

Deferred income tax liabilities

 

1,795

 

 

 

1,809

 

Employee-related benefits

 

399

 

 

 

342

 

Silver streaming agreement

 

786

 

 

 

828

 

Other non-current liabilities

 

426

 

 

 

430

 

Total liabilities

 

18,718

 

 

 

18,949

 

 

 

 

 

Commitments and contingencies (1)

 

 

 

 

 

 

 

EQUITY

 

 

 

Common stock

 

1,281

 

 

 

1,279

 

Treasury stock

 

(261

)

 

 

(239

)

Additional paid-in capital

 

17,407

 

 

 

17,369

 

Accumulated other comprehensive income (loss)

 

13

 

 

 

29

 

Retained earnings

 

785

 

 

 

916

 

Newmont stockholders' equity

 

19,225

 

 

 

19,354

 

Noncontrolling interests

 

190

 

 

 

179

 

Total equity

 

19,415

 

 

 

19,533

 

Total liabilities and equity

$

38,133

 

 

$

38,482

 

(1)

Refer to Note 18 of the Condensed Consolidated Financial Statements for additional information.

NEWMONT CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited, in millions)

 

 

Three Months Ended
June 30,

 

Six Months Ended
June 30,

 

 

2023

 

 

 

2022

 

 

 

2023

 

 

 

2022

 

Operating activities:

 

 

 

 

 

 

 

Net income (loss)

$

155

 

 

$

400

 

 

$

518

 

 

$

869

 

Non-cash adjustments:

 

 

 

 

 

 

 

Depreciation and amortization

 

486

 

 

 

559

 

 

 

947

 

 

 

1,106

 

Net loss (income) from discontinued operations

 

(2

)

 

 

(8

)

 

 

(14

)

 

 

(24

)

Reclamation and remediation

 

59

 

 

 

46

 

 

 

120

 

 

 

103

 

Stock-based compensation

 

23

 

 

 

22

 

 

 

42

 

 

 

40

 

(Gain) loss on asset and investment sales, net

 

 

 

 

 

 

 

(36

)

 

 

35

 

Deferred income taxes

 

6

 

 

 

(70

)

 

 

21

 

 

 

(111

)

Change in fair value of investments

 

42

 

 

 

135

 

 

 

1

 

 

 

96

 

Charges from pension settlement

 

 

 

 

 

 

 

 

 

 

130

 

Other non-cash adjustments

 

(6

)

 

 

(14

)

 

 

7

 

 

 

(20

)

Net change in operating assets and liabilities

 

(107

)

 

 

(37

)

 

 

(469

)

 

 

(502

)

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

 

656

 

 

 

1,033

 

 

 

1,137

 

 

 

1,722

 

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

 

7

 

 

 

10

 

 

 

7

 

 

 

15

 

Net cash provided by (used in) operating activities

 

663

 

 

 

1,043

 

 

 

1,144

 

 

 

1,737

 

 

 

 

 

 

 

 

 

Investing activities:

 

 

 

 

 

Additions to property, plant and mine development

 

(616

)

 

 

(519

)

 

 

(1,142

)

 

 

(956

)

Proceeds from maturities of investments

 

424

 

 

 

 

 

 

981

 

 

 

 

Purchases of investments

 

(17

)

 

 

(4

)

 

 

(542

)

 

 

(8

)

Proceeds from asset and investment sales

 

33

 

 

 

32

 

 

 

214

 

 

 

41

 

Contributions to equity method investees

 

(23

)

 

 

(39

)

 

 

(64

)

 

 

(91

)

Return of investment from equity method investees

 

30

 

 

 

26

 

 

 

30

 

 

 

39

 

Other

 

11

 

 

 

(11

)

 

 

23

 

 

 

(59

)

Net cash provided by (used in) investing activities

 

(158

)

 

 

(515

)

 

 

(500

)

 

 

(1,034

)

 

 

 

 

 

 

 

 

Financing activities:

 

 

 

 

 

Dividends paid to common stockholders

 

(318

)

 

 

(437

)

 

 

(636

)

 

 

(873

)

Funding from noncontrolling interests

 

34

 

 

 

24

 

 

 

75

 

 

 

56

 

Distributions to noncontrolling interests

 

(32

)

 

 

(44

)

 

 

(66

)

 

 

(103

)

Payments on lease and other financing obligations

 

(16

)

 

 

(15

)

 

 

(32

)

 

 

(34

)

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

 

 

 

 

 

 

 

(22

)

 

 

(36

)

Acquisition of noncontrolling interests

 

 

 

 

(48

)

 

 

 

 

 

(348

)

Repayment of debt

 

 

 

 

 

 

 

 

 

 

(89

)

Other

 

(2

)

 

 

(2

)

 

 

(3

)

 

 

10

 

Net cash provided by (used in) financing activities

 

(334

)

 

 

(522

)

 

 

(684

)

 

 

(1,417

)

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

 

4

 

 

 

(12

)

 

 

(4

)

 

 

(9

)

Net change in cash, cash equivalents and restricted cash

 

175

 

 

 

(6

)

 

 

(44

)

 

 

(723

)

Cash, cash equivalents and restricted cash at beginning of period

 

2,725

 

 

 

4,376

 

 

 

2,944

 

 

 

5,093

 

Cash, cash equivalents and restricted cash at end of period

$

2,900

 

 

$

4,370

 

 

$

2,900

 

 

$

4,370

 

 

 

 

 

 

 

 

 

Reconciliation of cash, cash equivalents and restricted cash:

 

 

 

 

 

Cash and cash equivalents

$

2,829

 

 

$

4,307

 

 

$

2,829

 

 

$

4,307

 

Restricted cash included in Other current assets

 

1

 

 

 

 

 

 

1

 

 

 

 

Restricted cash included in Other non-current assets

 

70

 

 

 

63

 

 

 

70

 

 

 

63

 

Total cash, cash equivalents and restricted cash

$

2,900

 

 

$

4,370

 

 

$

2,900

 

 

$

4,370

 

Non-GAAP Financial Measures

Non-GAAP financial measures are intended to provide additional information only and do not have any standard meaning prescribed by GAAP. These measures should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP. Refer to Non-GAAP Financial Measures within Part II, Item 7 within our Form 10-K for the year ended December 31, 2022, filed with the SEC on February 23, 2023 for further information on the non-GAAP financial measures presented below, including why management believes that its presentation of non-GAAP financial measures provides useful information to investors.

Adjusted net income (loss)

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

 

Three Months Ended
June 30, 2023

 

Six Months Ended
June 30, 2023

 

 

 

per share data (1)

 

 

 

per share data (1)

 

 

 

basic

 

diluted

 

 

 

basic

 

diluted

Net income (loss) attributable to Newmont stockholders

$

155

 

 

$

0.19

 

 

$

0.19

 

 

$

506

 

 

$

0.64

 

 

$

0.64

 

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

 

(2

)

 

 

 

 

 

 

 

 

(14

)

 

 

(0.02

)

 

 

(0.02

)

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

 

153

 

 

 

0.19

 

 

 

0.19

 

 

 

492

 

 

 

0.62

 

 

 

0.62

 

(Gain) loss on asset and investment sales, net (2)

 

 

 

 

 

 

 

 

 

 

(36

)

 

 

(0.05

)

 

 

(0.05

)

Newcrest transaction-related costs (3)

 

21

 

 

 

0.03

 

 

 

0.03

 

 

 

21

 

 

 

0.03

 

 

 

0.03

 

Restructuring and severance (4)

 

10

 

 

 

0.01

 

 

 

0.01

 

 

 

12

 

 

 

0.02

 

 

 

0.02

 

Impairment charges (5)

 

4

 

 

 

 

 

 

 

 

 

8

 

 

 

0.01

 

 

 

0.01

 

Change in fair value of investments (6)

 

42

 

 

 

0.05

 

 

 

0.05

 

 

 

1

 

 

 

 

 

 

 

Reclamation and remediation charges (7)

 

(2

)

 

 

 

 

 

 

 

 

(2

)

 

 

 

 

 

 

Other (8)

 

 

 

 

 

 

 

 

 

 

(4

)

 

 

 

 

 

 

Tax effect of adjustments (9)

 

(17

)

 

 

(0.02

)

 

 

(0.02

)

 

 

(1

)

 

 

 

 

 

 

Valuation allowance and other tax adjustments (10)

 

55

 

 

 

0.07

 

 

 

0.07

 

 

 

95

 

 

 

0.11

 

 

 

0.11

 

Adjusted net income (loss)

$

266

 

 

$

0.33

 

 

$

0.33

 

 

$

586

 

 

$

0.74

 

 

$

0.74

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares (millions): (11)

 

 

 

795

 

 

 

795

 

 

 

 

 

794

 

 

 

795

 

(1)

Per share measures may not recalculate due to rounding.

(2)

(Gain) loss on asset and investment sales, net, included in Other income (loss), net, primarily represents the net gain recognized on the exchange of the previously held Maverix investment for Triple Flag and the subsequent sale of the Triple Flag investment. Refer to Note 11 of the Condensed Consolidated Financial Statements for further information.

(3)

Newcrest transaction-related costs, included in Other expense, net, primarily represents costs incurred related to the Proposed Newcrest Transaction. Refer to Note 1 of the Condensed Consolidated Financial Statements for further information.

(4)

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.

(5)

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

(6)

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 equity securities.

(7)

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

(8)

Other represents income received on the favorable settlement of certain matters that were outstanding at the time of sale of the related investment in 2022. Amounts included in Other income (loss), net.

(9)

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

(10)

Valuation allowance and other tax adjustments, included in Income and mining tax benefit (expense), is recorded for items such as foreign tax credits, capital losses, disallowed foreign losses, and the effects of changes in foreign currency exchange rates on deferred tax assets and deferred tax liabilities. The adjustment for the three and six months ended June 30, 2023 reflects the net increase or (decrease) to net operating losses, capital losses, tax credit carryovers, and other deferred tax assets subject to valuation allowance of $47 and $57, the effects of changes in foreign exchange rates on deferred tax assets and liabilities of $4 and $21, net reductions to the reserve for uncertain tax positions of $3 and $14, other tax adjustments of $1 and $3. For further information on reductions to the reserve for uncertain tax positions, refer to Note 8 of the Condensed Consolidated Financial Statements.

(11)

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

 

Three Months Ended
June 30, 2022

 

Six Months Ended
June 30, 2022

 

 

 

per share data (1)

 

 

 

per share data (1)

 

 

 

basic

 

diluted

 

 

 

basic

 

diluted

Net income (loss) attributable to Newmont stockholders

$

387

 

 

$

0.49

 

 

$

0.49

 

 

$

835

 

 

$

1.05

 

 

$

1.05

 

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

 

(8

)

 

 

(0.01

)

 

 

(0.01

)

 

 

(24

)

 

 

(0.03

)

 

 

(0.03

)

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

 

379

 

 

 

0.48

 

 

 

0.48

 

 

 

811

 

 

 

1.02

 

 

 

1.02

 

Pension settlements (2)

 

 

 

 

 

 

 

 

 

 

130

 

 

 

0.16

 

 

 

0.16

 

Change in fair value of investments (3)

 

135

 

 

 

0.17

 

 

 

0.17

 

 

 

96

 

 

 

0.13

 

 

 

0.13

 

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

 

 

 

 

 

 

 

 

 

 

35

 

 

 

0.04

 

 

 

0.04

 

Settlement costs (5)

 

5

 

 

 

 

 

 

 

 

 

18

 

 

 

0.03

 

 

 

0.03

 

Reclamation and remediation charges (6)

 

 

 

 

 

 

 

 

 

 

13

 

 

 

0.02

 

 

 

0.02

 

Impairment charges (7)

 

2

 

 

 

 

 

 

 

 

 

2

 

 

 

 

 

 

 

COVID-19 specific costs (8)

 

1

 

 

 

 

 

 

 

 

 

1

 

 

 

 

 

 

 

Restructuring and severance (9)

 

 

 

 

 

 

 

 

 

 

1

 

 

 

 

 

 

 

Other (10)

 

(18

)

 

 

(0.03

)

 

 

(0.03

)

 

 

(18

)

 

 

(0.03

)

 

 

(0.03

)

Tax effect of adjustments (11)

 

(25

)

 

 

(0.03

)

 

 

(0.03

)

 

 

(62

)

 

 

(0.08

)

 

 

(0.08

)

Valuation allowance and other tax adjustments (12)

 

(117

)

 

 

(0.13

)

 

 

(0.13

)

 

 

(119

)

 

 

(0.14

)

 

 

(0.15

)

Adjusted net income (loss)

$

362

 

 

$

0.46

 

 

$

0.46

 

 

$

908

 

 

$

1.15

 

 

$

1.14

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares (millions): (13)

 

 

 

794

 

 

 

795

 

 

 

 

 

793

 

 

 

795

 

(1)

Per share measures may not recalculate due to rounding.

(2)

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

(3)

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

(4)

(Gain) loss on asset and investment sales, net, included in Other income (loss), net, primarily represents the loss recognized on the sale of the La Zanja equity method investment. For further information, refer to Note 1 of the Condensed Consolidated Financial Statements.

(5)

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

(6)

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

(7)

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

(8)

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

(9)

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

(10)

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

(11)

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

(12)

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

(13)

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

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

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

Three Months Ended
June 30,

 

Six Months Ended
June 30,

 

2023

 

 

 

2022

 

 

 

2023

 

 

 

2022

 

Net income (loss) attributable to Newmont stockholders

$

155

 

 

$

387

 

 

$

506

 

 

$

835

 

Net income (loss) attributable to noncontrolling interests

 

 

 

 

13

 

 

 

12

 

 

 

34

 

Net loss (Income) from discontinued operations

 

(2

)

 

 

(8

)

 

 

(14

)

 

 

(24

)

Equity loss (income) of affiliates

 

(16

)

 

 

(17

)

 

 

(41

)

 

 

(56

)

Income and mining tax expense (benefit)

 

163

 

 

 

33

 

 

 

376

 

 

 

247

 

Depreciation and amortization

 

486

 

 

 

559

 

 

 

947

 

 

 

1,106

 

Interest expense, net of capitalized interest

 

49

 

 

 

57

 

 

 

114

 

 

 

119

 

EBITDA

$

835

 

 

$

1,024

 

 

$

1,900

 

 

$

2,261

 

Adjustments:

 

 

 

 

 

 

 

(Gain) loss on asset and investment sales, net (1)

$

 

 

$

 

 

$

(36

)

 

$

35

 

Newcrest transaction-related costs (2)

 

21

 

 

 

 

 

 

21

 

 

 

 

Restructuring and severance (3)

 

10

 

 

 

 

 

 

12

 

 

 

1

 

Impairment charges (4)

 

4

 

 

 

2

 

 

 

8

 

 

 

2

 

Reclamation and remediation charges (5)

 

(2

)

 

 

 

 

 

(2

)

 

 

13

 

Change in fair value of investments (6)

 

42

 

 

 

135

 

 

 

1

 

 

 

96

 

Pension settlement (7)

 

 

 

 

 

 

 

 

 

 

130

 

Settlement costs (8)

 

 

 

 

5

 

 

 

 

 

 

18

 

COVID-19 specific costs (9)

 

 

 

 

1

 

 

 

 

 

 

1

 

Other (10)

 

 

 

 

(18

)

 

 

(4

)

 

 

(18

)

Adjusted EBITDA

$

910

 

 

$

1,149

 

 

$

1,900

 

 

$

2,539

 

(1)

(Gain) loss on asset and investment sales, net, included in Other income (loss), net, in 2023 is primarily comprised of the net gain recognized on the exchange of the previously held Maverix investment for Triple Flag and the subsequent sale of the Triple Flag investment. Refer to Note 11 of the Condensed Consolidated Financial Statements for further information. Amounts related to 2022 are primarily comprised of the loss recognized on the sale of the La Zanja equity method investment. Refer to Note 1 of the Condensed Consolidated Financial Statements for further information.

(2)

Newcrest transaction-related costs, included in Other expense, net, primarily represents costs incurred related to the Proposed Newcrest Transaction in the second quarter of 2023. Refer to Note 1 of the Condensed Consolidated Financial Statements for further information.

(3)

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.

(4)

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

(5)

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

(6)

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.

(7)

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

(8)

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

(9)

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

(10)

Other, included in Other income (loss), net, in 2023 represents income received during the first quarter of 2023, on the favorable settlement of certain matters that were outstanding at the time of sale of the related investment in 2022. Amounts related to 2022 are primarily comprised of a reimbursement of certain historical Goldcorp operational expenses related to a legacy project that reached commercial production in the second quarter of 2022.

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

 

Three Months Ended
June 30,

 

Six Months Ended
June 30,

 

2023

 

2022

 

2023

 

2022

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

$

140

 

$

91

 

$

225

 

$

244

Depreciation and amortization (1)

 

105

 

 

127

 

 

211

 

 

252

NGM EBITDA

$

245

 

$

218

 

$

436

 

$

496

(1)

Refer to Note 3 of the Condensed Consolidated Financial Statements.

Free Cash Flow

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

 

Three Months Ended
June 30,

 

Six Months Ended
June 30,

 

 

2023

 

 

 

2022

 

 

 

2023

 

 

 

2022

 

Net cash provided by (used in) operating activities

$

663

 

 

$

1,043

 

 

$

1,144

 

 

$

1,737

 

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

 

(7

)

 

 

(10

)

 

 

(7

)

 

 

(15

)

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

 

656

 

 

 

1,033

 

 

 

1,137

 

 

 

1,722

 

Less: Additions to property, plant and mine development

 

(616

)

 

 

(519

)

 

 

(1,142

)

 

 

(956

)

Free Cash Flow

$

40

 

 

$

514

 

 

$

(5

)

 

$

766

 

 

 

 

 

 

 

 

 

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

$

(158

)

 

$

(515

)

 

$

(500

)

 

$

(1,034

)

Net cash provided by (used in) financing activities

$

(334

)

 

$

(522

)

 

$

(684

)

 

$

(1,417

)

(1)

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

Attributable Free Cash Flow

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

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

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

 

Three Months Ended June 30, 2023

 

Six Months Ended June 30, 2023

 

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

$

663

 

 

$

 

 

$

663

 

 

$

1,144

 

 

$

(12

)

 

$

1,132

 

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

 

(7

)

 

 

 

 

 

(7

)

 

 

(7

)

 

 

 

 

 

(7

)

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

 

656

 

 

 

 

 

 

656

 

 

 

1,137

 

 

 

(12

)

 

 

1,125

 

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

 

(616

)

 

 

6

 

 

(610

)

 

 

(1,142

)

 

 

9

 

 

 

(1,133

)

Free Cash Flow

$

40

 

 

$

6

 

 

$

46

 

 

$

(5

)

 

$

(3

)

 

$

(8

)

 

 

 

 

 

 

 

 

 

 

 

 

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

$

(158

)

 

 

 

 

 

$

(500

)

 

 

 

 

Net cash provided by (used in) financing activities

$

(334

)

 

 

 

 

 

$

(684

)

 

 

 

 

(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 relates to Merian (25%).

(2)

For the three months ended June 30, 2023, Merian had total consolidated Additions to property, plant and mine development of $24 on a cash basis. For the six months ended June 30, 2023, Merian had total consolidated Additions to property, plant and mine development of $34 on a cash basis.

(3)

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

 

Three Months Ended June 30, 2022

 

Six Months Ended June 30, 2022

 

Consolidated

 

Attributable
to
noncontrolling
interests (1)

 

Attributable to
Newmont
Stockholders

 

Consolidated

 

Attributable
to
noncontrolling
interests (1)

 

Attributable to
Newmont
Stockholders

Net cash provided by (used in) operating activities

$

1,043

 

 

$

(20

)

 

$

1,023

 

 

$

1,737

 

 

$

(53

)

 

$

1,684

 

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

 

(10

)

 

 

 

 

 

(10

)

 

 

(15

)

 

 

 

 

 

(15

)

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

 

1,033

 

 

 

(20

)

 

 

1,013

 

 

 

1,722

 

 

 

(53

)

 

 

1,669

 

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

 

(519

)

 

 

3

 

 

 

(516

)

 

 

(956

)

 

 

21

 

 

 

(935

)

Free Cash Flow

$

514

 

 

$

(17

)

 

$

497

 

 

$

766

 

 

$

(32

)

 

$

734

 

 

 

 

 

 

 

 

 

 

 

 

 

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

$

(515

)

 

 

 

 

 

$

(1,034

)

 

 

 

 

Net cash provided by (used in) financing activities

$

(522

)

 

 

 

 

 

$

(1,417

)

 

 

 

 

(1)

Adjustment to eliminate a portion of Net cash provided by (used in) operating activities, Net cash provided by (used in) operating activities of discontinued operations and Additions to property, plant and mine development attributable to noncontrolling interests, which relate to Merian (25%) for the three and six months ended June 30, 2022, and Yanacocha (5%) for the six months ended June 30, 2022.

(2)

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

(3)

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

Net Debt

Net Debt is calculated as Debt and Lease and other financing obligations less Cash and cash equivalents and time deposits included in Time deposits and other investments, as presented on the Condensed Consolidated Balance Sheets. Cash and cash equivalents and time deposits are subtracted from Debt and Lease and other financing obligations as these are highly liquid, low-risk investments and could be used to reduce the Company's debt obligations.

The following table sets forth a reconciliation of Net Debt, a non-GAAP financial measure, to Debt and Lease and other financing obligations, which the Company believes to be the GAAP financial measures most directly comparable to Net Debt.

At June 30,
2023

 

At December 31,
2022

Debt

$

5,574

 

 

$

5,571

 

Lease and other financing obligations

 

537

 

 

 

561

 

Less: Cash and cash equivalents

 

(2,829

)

 

 

(2,877

)

Less: Time deposits (1)

 

(374

)

 

 

(829

)

Net debt

$

2,908

 

 

$

2,426

 

(1)

Time deposits are included in Time deposits and other investments on the Condensed Consolidated Balance Sheets. Refer to Note 11 of the Condensed Consolidated Financial Statements for further information.

Costs applicable to sales per ounce/gold equivalent ounce

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

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

Costs applicable to sales per gold ounce

 

 

Three Months Ended
June 30,

 

Six Months Ended
June 30,

 

2023

 

2022

 

2023

 

2022

Costs applicable to sales (1)(2)

$

1,277

 

$

1,381

 

$

2,516

 

$

2,565

Gold sold (thousand ounces)

 

1,211

 

 

1,482

 

 

2,419

 

 

2,811

Costs applicable to sales per ounce (3)

$

1,054

 

$

932

 

$

1,040

 

$

912

(1)

Includes by-product credits of $28 and $26 during the three months ended June 30, 2023 and 2022, respectively, and $58 and $53 during the six months ended June 30, 2023 and 2022, respectively.

(2)

Excludes Depreciation and amortization and Reclamation and remediation.

(3)

Per ounce measures may not recalculate due to rounding.

Costs applicable to sales per gold equivalent ounce

 

 

Three Months Ended
June 30,

 

Six Months Ended
June 30,

 

2023

 

2022

 

2023

 

2022

Costs applicable to sales (1)(2)

$

266

 

$

327

 

$

509

 

$

578

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

 

251

 

 

333

 

 

516

 

 

683

Costs applicable to sales per gold equivalent ounce (4)

$

1,062

 

$

983

 

$

988

 

$

846

(1)

Includes by-product credits of $2 and $2 during the three months ended June 30, 2023 and 2022, respectively, and $4 and $4 during the six months ended June 30, 2023 and 2022, 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 ($1,400/oz.), Copper ($3.50/lb.), Silver ($20.00/oz.), Lead ($1.00/lb.) and Zinc ($1.20/lb.) pricing for 2023 and Gold ($1,200/oz.), Copper ($3.25/lb.), Silver ($23.00/oz.), Lead ($0.95/lb.) and Zinc ($1.15/lb.) pricing for 2022.

(4)

Per ounce measures may not recalculate due to rounding.​

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

 

 

Three Months Ended
June 30,

 

Six Months Ended
June 30,

 

2023

 

2022

 

2023

 

2022

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

$

304

 

$

302

 

$

590

 

$

559

Gold sold (thousand ounces), NGM

 

288

 

 

291

 

 

546

 

 

578

Costs applicable to sales per ounce, NGM (3)

$

1,055

 

$

1,035

 

$

1,081

 

$

967

(1)

See Note 3 to the Condensed Consolidated Financial Statements.

(2)

Excludes Depreciation and amortization and Reclamation and remediation.

(3)

Per ounce measures may not recalculate due to rounding.

All-In Sustaining Costs

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

Three Months Ended
June 30, 2023

Costs
Applicable
to
Sales(1)(2)(3)(4)

 

Reclamation
Costs(5)

 

Advanced
Projects,
Research and

Development
and
Exploration(6)

 

General and
Administrative

 

Other
Expense,
Net(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

$

49

 

$

3

 

$

2

 

$

 

$

1

 

$

 

$

12

 

$

67

 

41

 

$

1,631

Musselwhite

 

55

 

 

2

 

 

4

 

 

 

 

 

 

 

 

31

 

 

92

 

41

 

 

2,254

Porcupine

 

77

 

 

7

 

 

3

 

 

 

 

 

 

 

 

13

 

 

100

 

63

 

 

1,587

Éléonore

 

74

 

 

3

 

 

2

 

 

 

 

 

 

 

 

33

 

 

112

 

51

 

 

2,213

Peñasquito

 

40

 

 

1

 

 

1

 

 

 

 

 

 

3

 

 

7

 

 

52

 

48

 

 

1,078

Merian

 

80

 

 

1

 

 

3

 

 

 

 

 

 

 

 

22

 

 

106

 

53

 

 

2,010

Cerro Negro

 

83

 

 

2

 

 

1

 

 

 

 

1

 

 

 

 

10

 

 

97

 

50

 

 

1,924

Yanacocha

 

79

 

 

4

 

 

3

 

 

 

 

3

 

 

 

 

4

 

 

93

 

66

 

 

1,386

Boddington

 

159

 

 

5

 

 

1

 

 

 

 

 

 

5

 

 

27

 

 

197

 

204

 

 

966

Tanami

 

102

 

 

 

 

1

 

 

 

 

 

 

 

 

41

 

 

144

 

124

 

 

1,162

Ahafo

 

121

 

 

5

 

 

1

 

 

 

 

 

 

 

 

37

 

 

164

 

133

 

 

1,237

Akyem

 

54

 

 

6

 

 

1

 

 

 

 

 

 

 

 

11

 

 

72

 

49

 

 

1,461

Nevada Gold Mines

 

304

 

 

3

 

 

4

 

 

3

 

 

 

 

1

 

 

83

 

 

398

 

288

 

 

1,388

Corporate and Other (11)

 

 

 

 

 

13

 

 

58

 

 

1

 

 

 

 

16

 

 

88

 

 

 

Total Gold

$

1,277

 

$

42

 

$

40

 

$

61

 

$

6

 

$

9

 

$

347

 

$

1,782

 

1,211

 

$

1,472

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gold equivalent ounces -
other metals (12)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Peñasquito

$

218

 

$

7

 

$

1

 

$

1

 

$

 

$

31

 

$

40

 

$

298

 

188

 

$

1,581

Boddington

 

48

 

 

1

 

 

 

 

 

 

 

 

4

 

 

9

 

 

62

 

63

 

 

977

Corporate and Other (11)

 

 

 

 

 

3

 

 

9

 

 

 

 

 

 

3

 

 

15

 

 

 

Total Gold Equivalent Ounces

$

266

 

$

8

 

$

4

 

$

10

 

$

 

$

35

 

$

52

 

$

375

 

251

 

$

1,492

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated

$

1,543

 

$

50

 

$

44

 

$

71

 

$

6

 

$

44

 

$

399

 

$

2,157

 

 

 

 

(1)

Excludes Depreciation and amortization and Reclamation and remediation.

(2)

Includes by-product credits of $30 and excludes co-product revenues of $303.

(3)

Includes stockpile, leach pad, and product inventory adjustments of $2 at Porcupine, $5 at Éléonore, $17 at Peñasquito, $2 at Cerro Negro, $4 at Yanacocha, and $1 at NGM.

(4)

Beginning January 1, 2023, COVID-19 specific costs incurred in the ordinary course of business are recognized in Costs applicable to sales.

(5)

Reclamation costs include operating accretion and amortization of asset retirement costs of $25 and $25, respectively, and exclude accretion and reclamation and remediation adjustments at former operating properties that have entered the closure phase and have no substantive future economic value of $36 and $5, respectively.

(6)

Advanced projects, research and development and exploration excludes development expenditures of $1 at CC&V, $3 at Porcupine $1 at Peñasquito, $2 at Merian, $3 at Yanacocha, $8 at Tanami, $9 at Ahafo, $4 at Akyem, $6 at NGM, and $29 at Corporate and Other, totaling $66 related to developing new operations or major projects at existing operations where these projects will materially benefit the operation.

(7)

Other expense, net is adjusted for impairment charges of $4, restructuring and severance of $10, and Newcrest transaction-related costs of $21.

(8)

Excludes capitalized interest related to sustaining capital expenditures. See Liquidity and Capital Resources within Part I, Item 2, Management's Discussion and Analysis for capital expenditures by segment.

(9)

Includes finance lease payments and other costs for sustaining projects of $16.

(10)

Per ounce measures may not recalculate due to rounding.

(11)

Corporate and Other includes the Company's business activities relating to its corporate and regional offices and all equity method investments. Refer to Note 3 of the Condensed Consolidated Financial Statements for further information.

(12)

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 ($1,400/oz.), Copper ($3.50/lb.), Silver ($20.00/oz.), Lead ($1.00/lb.) and Zinc ($1.20/lb.) pricing for 2023.

Three Months Ended
June 30, 2022

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

 

Reclamation
Costs(4)

 

Advanced
Projects,
Research and
Development
and
Exploration(5)

 

General and
Administrative

 

Other
Expense,
Net(6)

 

Treatment
and
Refining
Costs

 

Sustaining
Capital
and Lease
Related
Costs(7)(8)(9)

 

All-In
Sustaining
Costs

 

Ounces
(000)
Sold

 

All-In
Sustaining
Costs Per
oz.(10)

Gold

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CC&V

$

49

 

$

4

 

$

2

 

$

 

$

2

 

$

 

$

14

 

$

71

 

46

 

$

1,553

Musselwhite

 

53

 

 

1

 

 

2

 

 

 

 

 

 

 

 

11

 

 

67

 

40

 

 

1,693

Porcupine

 

71

 

 

1

 

 

4

 

 

 

 

 

 

 

 

14

 

 

90

 

68

 

 

1,328

Éléonore

 

71

 

 

2

 

 

1

 

 

 

 

2

 

 

 

 

14

 

 

90

 

47

 

 

1,922

Peñasquito (11)

 

127

 

 

3

 

 

1

 

 

 

 

 

 

6

 

 

18

 

 

155

 

130

 

 

1,187

Merian

 

94

 

 

1

 

 

4

 

 

 

 

1

 

 

 

 

13

 

 

113

 

96

 

 

1,173

Cerro Negro

 

71

 

 

2

 

 

1

 

 

 

 

1

 

 

 

 

11

 

 

86

 

78

 

 

1,106

Yanacocha

 

73

 

 

6

 

 

2

 

 

 

 

4

 

 

 

 

6

 

 

91

 

69

 

 

1,321

Boddington

 

181

 

 

4

 

 

1

 

 

 

 

1

 

 

5

 

 

14

 

 

206

 

241

 

 

854

Tanami

 

84

 

 

1

 

 

1

 

 

 

 

2

 

 

 

 

28

 

 

116

 

132

 

 

873

Ahafo

 

129

 

 

2

 

 

 

 

 

 

 

 

 

 

22

 

 

153

 

135

 

 

1,130

Akyem

 

76

 

 

8

 

 

 

 

 

 

 

 

 

 

7

 

 

91

 

109

 

 

837

Nevada Gold Mines

 

302

 

 

3

 

 

4

 

 

2

 

 

 

 

 

 

57

 

 

368

 

291

 

 

1,263

Corporate and Other (12)

 

 

 

 

 

18

 

 

59

 

 

 

 

 

 

4

 

 

81

 

 

 

Total Gold

$

1,381

 

$

38

 

$

41

 

$

61

 

$

13

 

$

11

 

$

233

 

$

1,778

 

1,482

 

$

1,199

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gold equivalent ounces -
other metals (13)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Peñasquito (11)

$

278

 

$

5

 

$

4

 

$

 

$

1

 

$

32

 

$

35

 

$

355

 

264

 

$

1,347

Boddington

 

49

 

 

 

 

1

 

 

 

 

 

 

3

 

 

3

 

 

56

 

69

 

 

818

Corporate and Other (12)

 

 

 

 

 

3

 

 

12

 

 

 

 

 

 

1

 

 

16

 

 

 

Total Gold Equivalent Ounces

$

327

 

$

5