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Friday, May 20, 2022

Newmont Announces Second Quarter Operating and Financial Results

DENVER–(BUSINESS WIRE)–

Newmont Mining Corporation (NEM) (Newmont or the Company) announced second quarter results, including $ 441 million in operating cash flow, and $ 692 million in adjusted earnings before interest, taxes, depreciation and amortization (Adjusted EBITDA).1

  • Net income: Achieved adjusted net income2 of $ 131 million, or $ 0.26 per basic share, compared to $ 101 million or $ 0.20 per share in the prior year quarter; GAAP net income attributable to shareholders from continuing operations was $ 63 million, or $ 0.13 per share, compared to $ 182 million or $ 0.37 per share in the prior year quarter
  • Consolidated Adjusted EBITDA: Delivered Adjusted EBITDA of $ 692 million in the second quarter, compared to $ 525 million in the prior year quarter
  • Consolidated cash flow: Generated cash from continuing operations of $ 441 million and free cash flow3 from continuing operations of $ 119 million, compared to $ 378 million and $ 124 million in the prior year quarter
  • All-in sustaining costs (AISC)4: Improved gold AISC to $ 909 per ounce compared with $ 1,063 per ounce in the prior year quarter, and copper AISC to $ 1.61 per pound compared to $ 3.69 per pound in the prior year quarter
  • Costs applicable to sales (CAS): Improved gold CAS to $ 638 per ounce compared with $ 744 per ounce in the prior year quarter, and copper CAS to $ 1.20 per pound compared to $ 2.53 per pound in the prior year quarter
  • Attributable production: Delivered 1.24 million ounces and 41,000 tonnes of attributable gold and copper production, respectively, compared to 1.22 million ounces and 20,000 tonnes, respectively, in the prior year quarter
  • Outlook: Improved 2015 outlook5 through strong operating performance and the addition of Cripple Creek & Victor (CC&V) gold mine; new guidance forecasts attributable gold production of between 4.7 and 5.1 million ounces, AISC of between $ 920 and $ 980 per ounce, and CAS of between $ 630 and $ 680 per ounce
  • Portfolio: Acquisition of CC&V is expected to close early August; adding profitable production and cash flow to Newmont’s portfolio, with potential upside from cost and efficiency improvements and mine expansions
  • Shareholder returns: Declared a second quarter dividend of $ 0.025 per share

“We continued to improve the underlying business in the second quarter, delivering $ 119 million in free cash flow and nearly $ 700 million in adjusted EBITDA while lowering all-in sustaining costs per ounce by 14 percent compared to the prior year. Favorable oil prices and exchange rates largely offset the impacts of lower metal prices. Based on this performance, we are improving our full-year outlook for both production and costs. We also strengthened our portfolio with the accretive acquisition of the Cripple Creek & Victor mine, while also continuing to divest certain non-core assets. Further, our strong operating performance allowed us to pay down an additional $ 75 million in debt and return cash to shareholders,” said Gary Goldberg, President and Chief Executive Officer.

Second Quarter Summary Results

Adjusted net income of $ 131 million, or $ 0.26 per basic share, was up 30% from the prior year quarter primarily due to higher copper production and better cost performance. GAAP net income attributable to shareholders from continuing operations was $ 63 million, or $ 0.13 per basic share, down from $ 182 million or $ 0.37 per share a year ago.

Consolidated cash flow from continuing operations was $ 441 million in the second quarter, compared to $ 378 million in the prior year quarter, more than offsetting the impact of lower metal prices and asset sales. Free cash flow was $ 119 million in the second quarter, slightly below the prior year quarter. During the quarter the Company paid $ 75 million towards its project debt facilities.

Revenue totaled $ 1.9 billion compared to $ 1.8 billion in the second quarter of 2014 primarily due to higher copper production and sales at Batu Hijau that helped offset lower metal prices and asset sales. During the second quarter of 2015, Batu Hijau mined higher grade ore and operated and shipped at full capacity. The prior year quarter was impacted by a temporary export ban.

Average net realized gold and copper price was $ 1,179 per ounce and $ 2.41 per pound, respectively, compared with $ 1,283 per ounce and $ 3.01 per pound, respectively, in the prior year quarter.

Attributable gold production totaled 1.24 million ounces, compared to 1.22 million ounces in the second quarter of 2014. Higher production at Batu Hijau and Tanami more than offset the impact of divesting Jundee and La Herradura. Including the pending sale of Waihi, Newmont will have generated approximately $ 1.6 billion in fair value asset sales since 2013 while maintaining attributable gold production. Attributable copper production totaled 41,000 tonnes compared to 20,000 tonnes in the year ago period due to higher grade ore at Batu Hijau.

Gold and copper AISC was $ 909 per ounce and $ 1.61 per pound, respectively, compared with $ 1,063 per ounce and $ 3.69 per pound, respectively, in the prior year quarter. Gold and copper CAS were $ 638 per ounce and $ 1.20 per pound, respectively, compared with $ 744 per ounce and $ 2.53 per pound, respectively, in the second quarter of 2014. Unit costs benefitted from ongoing cost and efficiency improvements, lower fuel prices and favorable Australian dollar exchange rates, and improved production volumes, particularly at Batu Hijau and Yanacocha.

Capital expenditures for the second quarter were $ 322 million, including $ 170 million of sustaining capital. Development capital was higher than the prior year primarily due to the construction of Merian in Suriname and Long Canyon Phase 1 in Nevada. Sustaining capital was lower mostly due to timing and a reduction of the full year forecast spend of about 5%.

 
  Three Months Ended June 30,     Six Months Ended June 30,
      2015     2014   % Change       2015     2014   % Change
Attributable Sales (koz, Mlbs)        
Attributable gold ounces sold 1,157 1,174 (1 )% 2,351 2,349 %
Attributable copper pounds sold 81 36 125 % 166 71 134 %
 
Average Realized Price ($ /oz, $ /lb)
Average realized gold price $ 1,179 $ 1,283 (8 )% $ 1,192 $ 1,288 (7 )%
Average realized copper price $ 2.41 $ 3.01 (20 )% $ 2.37 $ 2.76 (14 )%
 
Attributable Production (koz, kt)
North America 377 401 (6 )% 782 807 (3 )%
South America 129 106 22 % 270 228 18 %
Asia Pacific 535 475 13 % 986 933 6 %
Africa     195     238   (18 )%       411     462   (11 )%
Total Gold     1,236     1,220  

1

%

      2,449     2,430   1 %
 
North America 5 5 % 11.0 11.0 %
Asia Pacific     36     15   140 %       68.0     33.0   106 %
Total Copper     41     20  

105

%

      79.0     44.0  

80

%

 
CAS Consolidated ($ /oz, $ /lb)
North America $ 763 $ 780 (2 )% $ 725 $ 753 (4 )%
South America 631 984 (36 )% 538 1,032 (48 )%
Asia Pacific 614 754 (19 )% 644 772 (17 )%
Africa     476     468   2 %       469     448   5 %
Total Gold   $ 638   $ 744   (14 )%     $ 623   $ 747  

(17

)%
 
North America $ 1.82 $ 2.33 (22 )% $ 1.89 $ 2.36 (20 )%
Asia Pacific     1.16     2.65   (56 )%       1.21     2.74   (56 )%
Total Copper   $

1.20

  $ 2.53   (53 )%     $ 1.27   $ 2.62   (52 )%
 
AISC Consolidated ($ /oz, $ /lb)
North America $ 973 $ 1,032 (6 )% $ 931 $ 995 (6 )%
South America 985 1,398 (30 )% 833 1,401 (41 )%
Asia Pacific 771 939 (18 )% 796 949 (16 )%
Africa     711     688   3 %       672     652   3 %
Total Gold   $ 909   $ 1,063  

(14

)%     $ 879   $ 1,048   (16 )%
 
North America $ 2.44 $ 3.15 (22 )% $ 2.32 $ 2.88 (19 )%
Asia Pacific     1.55     3.91   (60 )%       1.61     3.98   (60 )%
Total Copper   $ 1.61   $ 3.69  

(56

)%     $ 1.67   $ 3.69  

(55

)%
 

2015 – 2017 OUTLOOK

Newmont has updated its gold production and cost outlook to include the impact of Long Canyon Phase 1, the pending acquisition of CC&V, and pending sale of Waihi. Attributable gold production is expected to increase from between 4.7 and 5.1 million ounces in 2015 to between 5.2 and 5.5 million ounces by 2017. In 2015, expected attributable gold production is up 3% from prior guidance primarily due to the inclusion of CC&V as well as improved productivity and mill utilization at Tanami and higher production at Batu Hijau. Attributable copper production outlook for 2015 is also up roughly 10% from prior guidance due to improved grade and face position at Batu Hijau.

The revised 2015 outlook includes a reduction in Asia Pacific and Africa region costs of approximately 6% each compared to previous guidance. Boddington and Tanami CAS and AISC outlook for 2015 are lower than previous estimates primarily due to lower oil prices and Australian dollar exchange rates, as well as efficiency improvements. Africa cost outlook for 2015 is improved due to lower direct spend related to power load shedding and processing of higher grade stockpiles. Consolidated AISC per ounce is expected to be between $ 920 and $ 980 in 2015, holding relatively steady at between $ 900 and $ 1,000 in 2017. Copper all-in sustaining costs per pound at Boddington are reduced in 2015 due to lower oil prices and Australian dollar exchange rates, as well as efficiency improvements. The long term outlook for copper production and costs remain unchanged for 2017.

The updated 2015 outlook includes reduced capital spending at Carlin and Twin Creeks in Nevada, as well as Boddington and Batu Hijau in Asia Pacific mostly due to optimized mine plans, cost savings and some delayed spend, offset by additional capital spend at the newly acquired CC&V gold mine in Colorado.

Debt Year-to-date, Newmont has paid $ 200 million toward its existing term loan and $ 80 million toward project debt in Ghana and Indonesia. Newmont remains on track to pay down further debt in 2015.

Projects Update

The Turf Vent Shaft is expected to achieve commercial production in late 2015, adding approximately 100,000 to 150,000 ounces of annual production to Carlin’s Leeville underground mine. The shaft provides ventilation required to increase production and decrease mine costs over the 11 year mine life at Leeville. Capital costs for the project are estimated at between $ 300 and $ 350 million, a reduction of $ 50 million from prior guidance. Approximately $ 60 to $ 70 million will be spent in 2015.

The Cripple Creek & Victor acquisition is expected to close in early August. CC&V lowers Newmont’s cost profile with expected CAS of between $ 725 and $ 775 per ounce and AISC of between $ 825 and $ 875 per ounce in 2016 and 2017. Gold production is expected to average between 350,000 and 400,000 ounces in 2016 and 2017. Total capital costs for Newmont are approximately $ 200 million, with between $ 50 and $ 60 million to be spent in 2015.

Merian is progressing on schedule and on budget. Merian will give Newmont a foothold in a prospective new district with significant upside potential. Gold production is expected to average between 400,000 and 500,000 ounces on a 100 percent basis during the first five years at a cost applicable to sales of $ 575 to $ 675 per ounce, and all-in sustaining cost of between $ 650 and $ 750 per ounce. Capital costs for the project are estimated at between $ 600 and $ 700 million for Newmont’s 75 percent share. Newmont’s capital expenditure is expected to be between $ 330 million and $ 360 million in 2015 and between $ 150 million and $ 190 million in 2016. The project is scheduled for start-up in late 2016.

Long Canyon Phase 1 is expected to achieve commercial production in the first half of 2017. This first phase of development consists of an open pit mine and heap leach operation with production of between 100,000 and 150,000 ounces per year over an eight year mine life. Estimated average costs applicable to sales are expected to be between $ 400 and $ 500 per ounce and all-in sustaining costs of between $ 500 and $ 600 per ounce over the life of the mine, in the first quartile for gold production. Total capital costs for the project are estimated at between $ 250 and $ 300 million allocated roughly evenly in 2015 and 2016 with minimal spending in 2017.

The Tanami Expansion and Ahafo Mill Expansion represent additional upside not currently included in the 2015 – 2017 outlook.

Tanami Expansion includes constructing a second decline in the mine and building incremental capacity in the plant to increase profitable production and serve as a platform for exploration drilling to support future expansion. For a capital cost of between $ 100 and $ 120 million, the project would add incremental gold production of 100,000 to 125,000 ounces (first five year average) at lower costs and increase mine life by three years. If approved later this year, additional production would come on line in 2017.

Ahafo Mill Expansion would increase profitable production by 100,000 to 125,000 ounces (first five year average) while lowering costs and off-setting the impacts of lower grades and harder ore. Capital costs are expected to be between $ 140 and $ 160 million. If approved in the second half of 2015, the additional production would be expected in late 2017.

         
Consolidated Attributable Consolidated

All-in

Sustaining

Consolidated
Total Capital

2015 Outlooka Production Production CAS Costsb Expenditures
    (kozs, kt)   (kozs, kt)   ($ /oz, $ /lb)   ($ /oz, $ /lb)   ($ M)
North America          
Carlin 850 910 850 910 $ 840 $ 900 $ 1,090 $ 1,170 $ 260 $ 280
Phoenixc 200 220 200 220 $ 760 $ 820 $ 900 $ 960 $ 20 $ 30
Twin Creeksd 410 440 410 440 $ 530 $ 570 $ 700

$

750 $ 50 $ 60
CC&Ve 120 140 120 140 $ 810 $ 870 $ 910

$

970 $ 50 $ 60
Long Canyon $ 130 $ 150
Other North America                                           $ 10   $ 20  
Total 1,580 1,710 1,580 1,710 $ 740 $ 790 $ 970 $ 1,040 $ 520 $ 600
 
South America
Yanacochaf 880 940 450 490 $ 550 $ 590 $ 870 $ 930 $ 140 $ 160
Merian                                           $ 440   $ 470  
Total 880 940 450 490 $ 550 $ 590 $ 950 $ 1,020 $ 580 $ 630
 
Asia Pacific
Boddington 700 750 700 750 $ 720 $ 770 $ 820 $ 880 $ 60 $ 70
Tanami 410 450 410 450 $ 530 $ 570 $ 790 $ 850 $ 80 $ 90
Waihi 90 110 90 110 $ 500 $ 550 $ 690 $ 740 $ 10 $ 20
Kalgoorlieg 310 340 310 340 $ 810 $ 870 $ 930 $ 1,000 $ 20 $ 30
Other Asia Pacific $ 5 $ 10
Batu Hijau   640 690   310 340   $ 440     $ 480   $ 600     $ 640   $ 95   $ 105  
Total 2,150 2,340 1,820 1,990 $ 610 $ 660 $ 775 $ 825 $ 270 $ 325
 
Africa
Ahafo 300 330 300 330 $ 740 $ 790 $ 1,050 $ 1,120 $ 100 $ 120
Akyem   440 470   440 470   $ 440     $ 480   $ 610     $ 660   $ 60   $ 70  
Total 740 800 740 800 $ 560 $ 610 $ 810 $ 870 $ 160 $ 190
 
Equity Productionh 110 130
Corporate/Other                                           $ 25   $ 30  
Total Gold   5,350 5,790   4,700 5,120   $ 630     $ 680   $ 920     $ 980   $ 1,555   $ 1,775  
 
Phoenix 15 25 15 25 $ 2.10 $ 2.30 $ 2.50 $ 2.70
Boddington 25 35 25 35 $ 2.20 $ 2.50 $ 2.60 $ 2.90
Batu Hijaui   210 230   100 120   $ 1.00     $ 1.20   $ 1.50     $ 1.70          
Total Copper   250 290   140 180   $ 1.20     $ 1.40   $ 1.70     $ 1.90          
 
Consolidated Expense Outlookj
General & Administrative   $ 170     $ 190
Other Expense $ 150 $ 175
Interest Expense $ 280 $ 300
DD&A $ 1,160 $ 1,240
Exploration and Projects $ 330 $ 360
Sustaining Capital $ 850 $ 900
Tax Rate   33%     37%
 

a

2015 Outlook projections used in this release (“Outlook”) are considered “forward-looking statements” and represent management’s good faith estimates or expectations of future production results as of the date hereof. Outlook is based upon certain assumptions, including, but not limited to, metal prices, oil prices, certain exchange rates and other assumptions. For example, 2015 Outlook assumes $ 1,200/oz Au, $ 2.75/lb Cu, $ 0.80 USD/AUD exchange rate and $ 75/barrel WTI. AISC and CAS cost estimates do not include inflation. Such assumptions may prove to be incorrect and actual results may differ materially from those anticipated. Consequently, 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.

b

Non-GAAP measure. All-in sustaining costs as used in the Company’s Outlook is a non-GAAP metric defined as the sum of cost applicable to sales (including all direct and indirect costs related to current gold production incurred to execute on the current mine plan), remediation costs (including operating accretion and amortization of asset retirement costs), G&A, exploration expense, advanced projects and R&D, treatment and refining costs, other expense, net of one-time adjustments and sustaining capital.

c

Includes Lone Tree operations.

d

Includes TRJV operations.

e

CC&V 2015 outlook includes 5 months of operations; assumes acquisition closes early August 2015.

f

Consolidated production for Yanacocha is presented on a total production basis for the mine site; attributable production represents a 51.35% interest.

g

Both consolidated and attributable production are shown on a pro-rata basis with a 50% ownership for Kalgoorlie.

h

La Zanja and Duketon are not included in the consolidated figures above; attributable production figures are presented based upon a 46.94% ownership interest at La Zanja and a 19.45% ownership interest in Duketon.

i

Consolidated production for Batu Hijau is presented on a total production basis for the mine site; whereas attributable production represents a 48.5% ownership interest in 2015 outlook (and assumes completion of the remaining share divestiture in the first half of 2016 for ownership of 44.5625%). Outlook for Batu Hijau remains subject to various factors, including, without limitation, renegotiation of the CoW, issuance of future export approvals following the expiration of the six-month permit, negotiations with the labor union, future in-country smelting availability and regulations relating to export quotas, and certain other factors.

j

Consolidated expense outlook is adjusted to exclude extraordinary items. For example, the tax rate outlook above is a consolidated adjusted rate, which assumes the exclusion of certain tax valuation allowance adjustments.

 

NEWMONT MINING CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited, in millions except per share)

       
Three Months Ended Six Months Ended
June 30, June 30,
2015   2014   2015   2014  
 
Sales $ 1,908 $ 1,765 $ 3,880 $ 3,529
 
Costs and expenses
Costs applicable to sales (1) 1,019 1,060 2,038 2,143
Depreciation and amortization 276 306 565 604
Reclamation and remediation 26 21 49 41
Exploration 48 41 81 75
Advanced projects, research and development 33 42 61 84
General and administrative 51 48 95 93
Other expense, net   52     64     91     116  
  1,505     1,582     2,980     3,156  
Other income (expense)
Other income, net (23 ) 3 (12 ) 49
Interest expense, net   (82 )   (94 )   (167 )   (187 )
  (105 ) (91 )   (179 )   (138 )
Income (loss) before income and mining tax and other items 298 92 721 235
Income and mining tax benefit (expense) (152 ) 53 (345 ) (25 )
Equity income (loss) of affiliates   (7 )   2     (16 )   2  
Income (loss) from continuing operations 139 147 360 212
Income (loss) from discontinued operations   9     (2 )   17     (19 )
Net income (loss) 148 145 377 193
Net loss (income) attributable to noncontrolling interests   (76 )   35     (122 )   87  
Net income (loss) attributable to Newmont stockholders $ 72   $ 180   $ 255   $ 280  
 
Net income (loss) attributable to Newmont stockholders:
Continuing operations $ 63 $ 182 $ 238 $ 299
Discontinued operations   9     (2 )   17     (19 )
$ 72   $ 180   $ 255   $ 280  
Income (loss) per common share
Basic:
Continuing operations $ 0.13 $ 0.37 $ 0.48 $ 0.60
Discontinued operations   0.01     (0.01 )   0.03     (0.04 )
$ 0.14   $ 0.36   $ 0.51   $ 0.56  
Diluted:
Continuing operations $ 0.13 $ 0.37 $ 0.48 $ 0.60
Discontinued operations   0.01     (0.01 )   0.03     (0.04 )
$ 0.14   $ 0.36   $ 0.51   $ 0.56  
 
Cash dividends declared per common share $ 0.025 $ 0.025 $ 0.050 $ 0.175
 

(1) Excludes Depreciation and amortization and Reclamation and remediation.

 

NEWMONT MINING CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited, in millions)

       
Three Months Ended Six Months Ended
June 30, June 30,
2015   2014   2015   2014  
Operating activities:
Net income $ 148 $ 145 $ 377 $ 193
Adjustments:
Depreciation and amortization 276 306 565 604
Stock based compensation and other non-cash benefits 20 14 40 27
Reclamation and remediation 24 21 47 41
Loss (income) from discontinued operations (9 ) 2 (17 ) 19
Impairment of investments 16 73 1
Deferred income taxes 69 (127 ) 130 (92 )
Gain on asset and investment sales, net 1 (2 ) (43 ) (52 )
Other operating adjustments and write-downs 91 122 165 273
Net change in operating assets and liabilities   (195 )   (103 )   (268 )   (453 )
Net cash provided by continuing operations 441 378 1,069 561
Net cash used in discontinued operations   (3 )   (3 )   (6 )   (6 )
Net cash provided by operations   438     375     1,063     555  
Investing activities:
Additions to property, plant and mine development (322 ) (254 ) (606 ) (489 )
Acquisitions, net (28 )
Sales of investments 29 25
Purchases of investments (1 )
Proceeds from sale of other assets 6 44 76
Other   (3 )   (2 )   (6 )   (11 )
Net cash used in investing activities   (325 )   (250 )   (539 )   (428 )
Financing activities:
Proceeds from debt, net 15 18
Repayment of debt (76 ) (5 ) (281 ) (5 )
Proceeds from stock issuance, net 675 675
Sale of noncontrolling interests 68 37 68
Funding from noncontrolling interests 15 62
Acquisition of noncontrolling interests (3 ) (2 ) (6 ) (4 )
Dividends paid to noncontrolling interests (4 ) (3 ) (4 )
Dividends paid to common stockholders (11 ) (12 ) (23 ) (89 )
Restricted cash and other   (4 )   (7 )   (61 )   (11 )
Net cash provided by (used in) financing activities   596     53     400     (27 )
Effect of exchange rate changes on cash   1         (19 )   (2 )
Net change in cash and cash equivalents 710 178 905 98
Cash and cash equivalents at beginning of period   2,598     1,475     2,403     1,555  
Cash and cash equivalents at end of period $ 3,308   $ 1,653   $ 3,308   $ 1,653  
 

NEWMONT MINING CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited, in millions)

   
At June 30, December 31,
2015 2014
ASSETS
Cash and cash equivalents $ 3,308 $ 2,403
Trade receivables 369 186
Accounts receivable 186 290
Investments 33 73
Inventories 748 700
Stockpiles and ore on leach pads 791 666
Deferred income tax assets 212 240
Other current assets   909     881  
Current assets 6,556 5,439
Property, plant and mine development, net 13,646 13,650
Investments 249 334
Stockpiles and ore on leach pads 2,823 2,820
Deferred income tax assets 1,777 1,790
Other long-term assets   910     883  
Total assets $ 25,961   $ 24,916  
 
LIABILITIES
Debt $ 243 $ 166
Accounts payable 397 406
Employee-related benefits 227 307
Income and mining taxes 158 74
Other current liabilities   1,331     1,245  
Current liabilities 2,356 2,198
Debt 6,140 6,480
Reclamation and remediation liabilities 1,653 1,606
Deferred income tax liabilities 759 656
Employee-related benefits 452 492
Other long-term liabilities   333     395  
Total liabilities   11,693     11,827  
Commitments and contingencies
 
EQUITY
Common stock 846 798
Additional paid-in capital 9,391 8,712
Accumulated other comprehensive income (loss) (440 ) (478 )
Retained earnings   1,474     1,242  
Newmont stockholders’ equity 11,271 10,274
Noncontrolling interests   2,997     2,815  
Total equity   14,268     13,089  
Total liabilities and equity $ 25,961   $ 24,916  
 
Regional Operating Statistics
     
  Consolidated gold Attributable gold
ounces produced ounces produced
(thousands): (thousands):
Three Months Ended Three Months Ended
June 30, June 30,
2015   2014 2015 2014
North America
Carlin 200 209 200 209
Phoenix 52 52 52 52
Twin Creeks 125 94 125 94
La Herradura 46 46
377 401 377 401
South America
Yanacocha 216 190 111 98
Other South America Equity Interests 18 8
216 190 129 106
Asia Pacific
Boddington 201 168 201 168
Tanami 116 95 116 95
Jundee 74 74
Waihi 33 41 33 41
Kalgoorlie 83 77 83 77
Batu Hijau 181 15 87 7
Other Asia Pacific Equity Interests 15 13
614 470 535 475
Africa
Ahafo 74 125 74 125
Akyem 121 113 121 113
195 238 195 238
1,402 1,299 1,236 1,220
Consolidated copper pounds produced (millions):
Phoenix 12 12 12 12
Boddington 20 16 20 16
Batu Hijau 125 34 60 17
157 62 92 45
Consolidated copper tonnes produced (thousands):
Phoenix 5 5 5 5
Boddington 9 7 9 7
Batu Hijau 57 16 27 8
71 28 41 20
 

Non-GAAP Financial Measures

Non-GAAP financial measures are intended to provide additional information only and do not have any standard meaning prescribed by 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.

Adjusted net income (loss)

Management of the Company 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 compare results of the continuing operations of the Company and its direct and indirect subsidiaries relating to the production and sale of minerals to similar operating results of other mining companies, by excluding exceptional or unusual items. The net income (loss) adjustments are presented net of tax generally at Company’s statutory effective tax rate of 35% and net of our partners’ noncontrolling interests when applicable. The corollary impact of the adjustments through the Company’s Valuation allowance is shown separately. Management’s determination of the components of Adjusted net income (loss) are evaluated periodically and based, in part, on a review of non-GAAP financial measures used by mining industry analysts. Net income (loss) attributable to Newmont stockholders is reconciled to Adjusted net income (loss) as follows:

       
Three Months Ended Six Months Ended
June 30, June 30,
2015   2014   2015   2014  
Net income (loss) attributable to Newmont stockholders $ 72 $ 180 $ 255 $ 280
Loss (income) from discontinued operations (1) (9 ) 2 (17 ) 19
Impairments and loss provisions (2) 12 5 49 7
Tax valuation allowance 45 (98 ) 89 (98 )
Restructuring and other (3) 5 4 7 7
Acquisition Costs (4) 5 5
Asset sales (5) 1 (1 ) (27 ) (14 )
Abnormal production costs at Batu Hijau (6)       9         9  
Adjusted net income (loss) $ 131   $ 101   $ 361   $ 210  
 
Net income (loss) per share, basic $ 0.14 $ 0.36 $ 0.51 $ 0.56
Loss (income) from discontinued operations, net of taxes (0.02 ) (0.03 ) 0.05
Impairments and loss provisions, net of taxes 0.02 0.01 0.09 0.01
Tax valuation allowance 0.09 (0.20 ) 0.18 (0.20 )
Restructuring and other, net of taxes 0.01 0.01 0.01 0.01

Acquisition costs, net of taxes

0.01 0.01
Asset sales, net of taxes 0.01 (0.05 ) (0.03 )

Abnormal production costs at Batu Hijau, net of taxes

      0.02         0.02  
Adjusted net income (loss) per share, basic $ 0.26   $ 0.20   $ 0.72   $ 0.42  
 
Net income (loss) per share, diluted $ 0.14 $ 0.36 $ 0.51 $ 0.56
Loss (income) from discontinued operations, net of taxes (0.02 ) (0.03 ) 0.05
Impairments and loss provisions, net of taxes 0.02 0.01 0.09 0.01
Tax valuation allowance 0.09 (0.20 ) 0.18 (0.20 )
Restructuring and other, net of taxes 0.01 0.01 0.01 0.01

Acquisition costs, net of taxes

0.01 0.01
Asset sales, net of taxes 0.01 (0.05 ) (0.03 )

Abnormal production costs at Batu Hijau, net of taxes

      0.02         0.02  
Adjusted net income (loss) per share, diluted $ 0.26   $ 0.20   $ 0.72   $ 0.42  
 
Weighted average common shares (millions):
Basic 505 499 502 498
Diluted 506 499 503 499
 

(1)

  Loss (income) from discontinued operations is presented net of tax $ 4, ($ 1), $ 8 and ($ 9) expense (benefit), respectively.

(2)

Impairments and loss provisions is presented net of tax ($ 6), ($ 5), ($ 27) and ($ 4) expense (benefit), respectively and amounts attributed to noncontrolling interest income (expense) of $ -, ($ 3), $ – and ($ 3), respectively.

(3)

Restructuring and other is presented net of tax ($ 3), ($ 2), ($ 5) and ($ 4) expense (benefit), respectively and amounts attributed to noncontrolling interest income (expense) of ($ 1), $ -, ($ 2) and ($ 2), respectively.

(4)

Acquisition costs is presented net of tax ($ 3), $ -, ($ 3), $ – expense (benefit), respectively.

(5)

Asset sales are presented net of tax $ nil, $ 1, $ 16 and $ 38 expense (benefit), respectively.

(6)

Abnormal production cost at Batu Hijau is presented net of tax $ -, ($ 9), $ – and ($ 9) expense (benefit), respectively and amounts attributed to noncontrolling interest income (expense) of $ -, ($ 9), $ – and ($ 9), respectively.
 

Adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization (Adjusted EBITDA)

We also present adjusted earnings before interest, taxes, depreciation, and amortization (Adjusted EBITDA) as a non-GAAP measure. Our management uses adjusted net income, adjusted net income per diluted share and Adjusted EBITDA as measures of operating performance to assist in comparing performance from period to period on a consistent basis; as a measure for planning and forecasting overall expectations and for evaluating actual results against such expectations; in communications with the board of directors, stockholders, analysts and investors concerning our financial performance; as useful comparisons to the performance of our competitors; and as metrics of certain management incentive compensation calculations. We believe that adjusted net income, adjusted net income per diluted share and Adjusted EBITDA are used by and are useful to investors and other users of our financial statements in evaluating our operating performance because they provide an additional tool to evaluate our performance without regard to special and non-core items, which can vary substantially from company to company depending upon accounting methods and book value of assets and capital structure. We have provided reconciliations of all non-GAAP measures to their nearest U.S. GAAP measures and have consistently applied the adjustments within our reconciliations in arriving at each non-GAAP measure. These adjustments consist of special items from our U.S. GAAP financial statements as well as other non-core items, such as property, plant and mine development impairments, restructuring costs, gains and losses on sales of asset sales, abnormal production costs and transaction/acquisition costs included in our U.S. GAAP results that warrant adjustment to arrive at non-GAAP results. We consider these items to be necessary adjustments for purposes of evaluating our ongoing business performance and are often considered non-recurring. Such adjustments are subjective and involve significant management judgment.

Management of the Company uses EBITDA and EBITDA adjusted for non-core or unusual items (Adjusted EBITDA) as non-GAAP measures to evaluate the Company’s operating performance. EBITDA and Adjusted EBITDA are non-U.S. GAAP measures. EBITDA and Adjusted EBITDA do not represent, and should not be considered an alternative to, net earnings (loss), operating earnings (loss), or cash flow from operations as those terms are defined by GAAP, and does 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 Earnings before interest, taxes and depreciation and amortization and Adjusted earnings before interest, taxes and depreciation and amortization as follows:

       
Three Months Ended Six Months Ended
June 30, June 30,
2015   2014   2015   2014  
Net income (loss) attributable to Newmont stockholders $ 72 $ 180 $ 255 $ 280
Net loss (income) attributable to noncontrolling interests 76 (35 ) 122 (87 )
Income (loss) from discontinued operations (9 ) 2 (17 ) 19
Equity income (loss) of affiliates 7 (2 ) 16 (2 )
Income and mining tax (expense) benefit 152 (53 ) 345 25
Depreciation and amortization 276 306 565 604
Interest expense, net   82     94     167     187  
EBITDA $ 656 $ 492 $ 1,453 $ 1,026
Adjustments:
Impairments and loss provisions $ 18 $ 13 $ 76 $ 14
Restructuring and other 9 6 14 13
Acquisitions costs 8 8
Asset sales 1 (2 ) (43 ) (52 )
Abnormal production costs at Batu Hijau       16         16  
Adjusted EBITDA $ 692   $ 525   $ 1,508   $ 1,017  
 

Free Cash Flow

Free cash flow is cash generated from Net cash provided from continuing operations less Additions to property, plant and mine development as presented on the Statement of Cash Flows. To supplement our statements of cash flows presented on a GAAP basis, we use non-GAAP measures of cash flows to analyze cash flows generated from our operations. We believe Free cash flow is also useful as one of the bases for comparing our performance with our competitors. 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 our performance, or as an alternative to cash flows from operating activities as a measure of liquidity. Net cash provided from continuing operations is reconciled to Free cash flow as follows:

       
Three Months Ended Six Months Ended
June 30, June 30,
2015   2014   2015   2014  
Net cash provided by continuing operations $ 441 $ 378 $ 1,069 $ 561
Less: Additions to property, plant and mine development   (322 )   (254 )   (606 )   (489 )
Free Cash Flow $ 119   $ 124   $ 463   $ 72  
 

Costs applicable to sales per ounce/pound

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

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

Costs applicable to sales per ounce

       
Three Months Ended Six Months Ended
June 30, June 30,
2015 2014 2015 2014
Costs applicable to sales (1) $ 852 $ 944 $ 1,686 $ 1,904
Gold sold (thousand ounces) 1,337 1,269 2,704 2,547
Costs applicable to sales per ounce $ 638 $ 744 $ 623 $ 747

(1)

  Includes by-product credits of $ 12 and $ 26 in the second quarter and first half of 2015, respectively, and $ 20 and $ 38 in the second quarter and first half of 2014.
 

Costs applicable to sales per pound

       
Three Months Ended Six Months Ended
June 30, June 30,
2015 2014 2015 2014
Costs applicable to sales (1) $ 167 $ 116 $ 352 $ 239
Copper sold (million pounds) 139 45 278 90
Costs applicable to sales per pound: $ 1.20 $ 2.53 $ 1.27 $ 2.62

(1)

  Includes by-product credits of $ 5 and $ 11 in the second quarter and first half of 2015, respectively, and $ 4 and $ 9 in the second quarter and first half of 2014 in the second quarter of 2014.
 

All-In Sustaining Costs

Newmont has worked to develop a metric that expands on GAAP measures such as cost of goods sold and non-GAAP measures, such as costs applicable to sales per ounce, to provide visibility into the economics of our mining operations related to expenditures, operating performance and the ability to generate cash flow from 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 gold production. Therefore, we believe that all-in sustaining costs is a non-GAAP measure that provides additional information to management, investors, and analysts that aid in the understanding of the economics of our operations and performance compared to other producers and in the investor’s visibility by better defining the total costs associated with production.

All-in sustaining cost (AISC) amounts are intended to provide additional information only and do not have any standardized meaning prescribed by GAAP and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP. The measures are not necessarily indicative of operating profit or cash flow from operations as determined under GAAP. Other companies may calculate these measures differently as a result of differences in the underlying accounting principles, policies applied and in accounting frameworks such as in International Financial Reporting Standards (IFRS), or by reflecting the benefit from selling non-gold metals as a reduction to AISC. Differences may also arise related to definitional differences of sustaining versus development capital activities based upon each company’s internal policies.

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

Cost Applicable to Sales – Includes all direct and indirect costs related to current gold production incurred to execute the current mine plan. Costs Applicable to Sales (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 Amortization and Reclamation and remediation, which is consistent with our presentation of CAS on the Statement of Consolidated Income. 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 Statement of Consolidated Income less the amount of CAS attributable to the production of copper at our Phoenix, Boddington and Batu Hijau mines. The copper CAS at those mine sites is disclosed in Note 3 – Segments that accompanies the Consolidated Financial Statements. The allocation of CAS between gold and copper at the Phoenix, Boddington and Batu Hijau mines is based upon the relative sales percentage of copper and gold sold during the period.

Remediation Costs – Includes accretion expense related to asset retirement obligations (ARO) and the amortization of the related Asset Retirement Cost (ARC) for the Company’s operating properties recorded as an ARC asset. Accretion related to ARO and the amortization of the ARC assets for reclamation and remediation do not reflect annual cash outflows but are calculated in accordance with GAAP. The accretion and amortization reflect the periodic costs of reclamation and remediation associated with current gold production and are therefore included in the measure. The allocation of these costs to gold and copper is determined using the same allocation used in the allocation of CAS between gold and copper at the Phoenix, Boddington and Batu Hijau mines.

Advanced Projects and Exploration – Includes incurred expenses related to projects that are designed to increase or enhance current gold production and gold exploration. We note that as current resources are depleted, exploration and advance projects are necessary for us to replace the depleting reserves or enhance the recovery and processing of the current reserves. As this relates to sustaining our gold production, and is considered a continuing cost of a mining company, these costs are included in the AISC measure. These costs are derived from the Advanced projects, research and development and Exploration amounts presented in the Company’s Statement of Consolidated Income less the amount attributable to the production of copper at our Phoenix, Boddington and Batu Hijau mines. The allocation of these costs to gold and copper is determined using the same allocation used in the allocation of CAS between gold and copper at the Batu Hijau, Boddington and Phoenix mines.

General and Administrative – Includes cost related to administrative tasks not directly related to current gold production, but rather related to support our corporate structure and fulfilling our obligations to operate as a public company. Including these expenses in the AISC metric provides visibility of the impact that general and administrative activities have on current operations and profitability on a per ounce basis.

Other Expense, net – Includes costs related to regional administration and community development to support current gold production. We exclude certain exceptional or unusual expenses from Other expense, net, such as restructuring, as these are not indicative to sustaining our current gold operations. Furthermore, this adjustment to Other expense, net is also consistent with the nature of the adjustments made to Net income (loss) as disclosed in the Company’s non-GAAP financial measure Adjusted net income (loss). The allocation of these costs to gold and copper is determined using the same allocation used in the allocation of CAS between gold and copper at the Phoenix, Boddington and Batu Hijau mines.

Treatment and Refining Costs – Includes costs paid to smelters for treatment and refining of our concentrates to produce the salable metal. These costs are presented net as a reduction of Sales.

Sustaining Capital – We determined sustaining capital as those capital expenditures that are necessary to maintain current gold production and execute the current mine plan. Capital expenditures to develop new operations, or related to projects at existing operations where these projects will enhance gold production or reserves, are considered development. We determined the breakout of sustaining and development capital costs based on a systematic review of our project portfolio in light of the nature of each project. Sustaining capital costs are relevant to the AISC metric as these are needed to maintain the Company’s current gold operations and provide improved transparency related to our ability to finance these expenditures from current operations. The allocation of these costs to gold and copper is determined using the same allocation used in the allocation of CAS between gold and copper at the Batu Hijau, Boddington and Phoenix mines.

 
      Advanced       Treatment         All-In
Costs Projects General Other and All-In Ounces Sustaining
Three Months Ended Applicable Remediation and and Expense, Refining Sustaining Sustaining (000 )/Pounds Costs per

June 30, 2015

to Sales (1)(2)(3)

Costs (4)

Exploration

Administrative

Net (5)

Costs

Capital (6)

Costs

(millions) Sold

oz/lb
GOLD
Carlin $ 186 $ 1 $ 4 $ $ 3 $ $ 38 $ 232 204 $ 1,137
Phoenix 32 2 1 5 40 43 930
Twin Creeks 65 3 1 12 81 125 648
Other North America       7     1     1   9  
North America   283   3   14     5   1   56   362 372   973
 
Yanacocha 128 25 8 8 19 188 204 922
Other South America       12     1       13  
South America   128   25   20     9     19   201 204   985
 
Boddington 122 2 1 4 15 144 175 823
Tanami 59 1 2 23 85 117 726
Waihi 17 1 1 1 20 33 606
Kalgoorlie 78 2 1 1 4 86 86 1,000
Batu Hijau 72 3 2 1 9 7 94 156 603
Other Asia Pacific       1   1   4     2   8  
Asia Pacific   348   8   7   1   7   14   52   437 567   771
 
Ahafo 43 3 5 1 17 69 72 958
Akyem 50 1 4 2 8 65 122 533
Other Africa       1     3       4  
Africa   93   4   10     6     25   138 194   711
 
Corporate and Other       26   49   2       77  
Total Gold $ 852 $ 40 $ 77 $ 50 $ 29 $ 15 $ 152 $ 1,215 1,337 $ 909
 
COPPER
Phoenix $ 17 $ $ 1 $ $ $ 2 $ 2 $ 22 9 $ 2.44
Boddington 29 1 3 3 36 18 2.00
Batu Hijau   121   4   3   1   4   20   13   166 112   1.48
Asia Pacific   150   5   3   1   4   23   16   202 130   1.55
Total Copper $ 167 $ 5 $ 4 $ 1 $ 4 $ 25 $ 18 $ 224 139 $ 1.61
                             
Consolidated $ 1,019 $ 45 $ 81 $ 51 $ 33 $ 40 $ 170 $ 1,439
   

(1)

  Excludes Depreciation and amortization and Reclamation and remediation.

(2)

Includes by-product credits of $ 17.

(3)

Includes stockpile and leach pad inventory adjustments of $ 27 at Carlin, $ 3 at Twin Creeks and $ 18 at Yanacocha.

(4)

Remediation costs include operating accretion of $ 18 and amortization of asset retirement costs of $ 27.

(5)

Other expense, net is adjusted for restructuring costs of $ 9, acquisition costs of $ 8 and write-downs of $ 2.

(6)

Excludes development capital expenditures, capitalized interest, and the increase in accrued capital of $ 152. The following are major development projects: Turf Vent Shaft, Long Canyon and Merian.
 
                   
Advanced Treatment All-In
Costs Projects General Other and All-In Ounces Sustaining
Three Months Ended Applicable Remediation and and Expense, Refining Sustaining Sustaining (000)/Pounds Costs per
June 30, 2014 to Sales (1)(2)(3) Costs (4) Exploration Administrative Net (5) Costs Capital (6) Costs (millions) Sold oz/lb
GOLD
Carlin $ 209 $ 1 $ 7 $ $ 3 $ $ 35 $ 255 209 $ 1,220
Phoenix 35 1 3 1 40 57 702
Twin Creeks 49 3 29 81 96 844
La Herradura (7) 26 2 9 37 46 804
Other North America       6     1     1   8  
North America   319   2   18     4   3   75   421 408   1,032
 
Yanacocha 184 29 9 8 20 250 186 1,344
Other South America       9     1       10  
South America   184   29   18     9     20   260 186   1,398
 
Boddington 133 2 1 21 157 148 1,061
Tanami 63 1 4 17 85 92 924
Jundee (8) 43 2 1 9 55 76 724
Waihi 19 1 1 1 22 41 537
Kalgoorlie 65 2 1 4 72 75 960
Batu Hijau 9 1 3 13 9 1,444
Other Asia Pacific       1     4     5   10  
Asia Pacific   332   5   8     7   2   60   414 441   939
 
Ahafo 65 1 5 1 36 108 121 893
Akyem 44 1 2 47 113 416
Other Africa       3     3       6  
Africa   109   2   8     6     36   161 234   688
 
Corporate and Other       30   48   12     3   93  
Total Gold $ 944 $ 38 $ 82 $ 48 $ 38 $ 5 $ 194 $ 1,349 1,269 $ 1,063
 
COPPER
Phoenix $ 30 $ 1 $ $ $ 1 $ 2 $ 7 $ 41 13 $ 3.15
Boddington 32 1 5 5 43 13 3.31
Batu Hijau   54   3   1     6   4   14   82 19   4.32
Asia Pacific   86   4   1     6   9   19   125 32   3.91
Total Copper $ 116 $ 5 $ 1 $ $ 7 $ 11 $ 26 $ 166 45 $ 3.69
                               
Consolidated $ 1,060 $ 43 $ 83 $ 48 $ 45 $ 16 $ 220 $ 1,515
   

(1)

  Excludes Depreciation and amortization and Reclamation and remediation.

(2)

Includes by-product credits of $ 24.

(3)

Includes planned stockpile and leach pad inventory adjustments of $ 32 at Carlin, $ 2 at Twin Creeks, $ 20 at Yanacocha, $ 15 at Boddington and $ 2 at Batu Hijau.

(4)

Remediation costs include operating accretion of $ 18 and amortization of asset retirement costs of $ 25.

(5)

Other expense, net is adjusted for restructuring costs of $ 6 and write-downs of $ 13.

(6)

Excludes development capital expenditures, capitalized interest, and the increase in accrued capital of $ 34. The following are major development projects: Turf Vent Shaft, Conga, and Merian.

(7)

On October 6, 2014, the Company sold its 44% interest in La Herradura.

(8)

The Jundee mine was sold July 1, 2014.
 

Conference Call Information

A conference call will be held on Thursday, July 23, 2015 at 10:00 a.m. Eastern Time (8:00 a.m. Mountain Time); it will also be carried on the Company’s website.

Conference Call Details

Dial-In Number 800.857.6428
Intl Dial-In Number 517.623.4916
Leader Meredith Bandy
Passcode Newmont
Replay Number 800.947.5181
Intl Replay Number 203.369.3980
Replay Passcode 2015

Webcast Details

URL http://event.on24.com/r.htm?e=1017017&s=1&k=E80326D07CE308149EA7259B6A29ED25

The second quarter 2015 results and related financial and statistical information will be available after the market close on Wednesday July 22, 2015 on the “Investor Relations” section of the Company’s website, www.newmont.com. Additionally, the conference call will be archived for a limited time on the Company’s website.

Investors are reminded to refer to the investor Briefcase on www.newmont.com which contains operating statistics, MD&A and other relevant financial information.

Cautionary Statement Regarding Forward Looking Statements, Including Outlook:

This release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are intended to be covered by the safe harbor created by such sections and other applicable laws. Such forward-looking statements may include, without limitation: (i) estimates of future consolidated and attributable production and sales; (ii) estimates of future costs applicable to sales and All-in sustaining costs; (iii) estimates of future consolidated and attributable capital expenditures; (iv) our efforts to continue delivering reduced costs and efficiency; and (v) expectations regarding the development, growth and exploration potential of the Company’s projects and investments, including the Turf Vent Shaft, Merian, Long Canyon Phase 1, the Tanami Expansion and the Ahafo Mill Expansion; and (vi) expectations regarding the targeted debt pay down and the Cripple Creek and Victor acquisition. Estimates or expectations of future events or results are based upon certain assumptions, which may prove to be incorrect. Such assumptions, include, but are not limited to: (i) there being no significant change to current geotechnical, metallurgical, hydrological and other physical conditions; (ii) permitting, development, operations and expansion of the Company’s operations and projects being consistent with current expectations and mine plans, including without limitation receipt of export approvals; (iii) political developments in any jurisdiction in which the Company operates being consistent with its current expectations; (iv) certain exchange rate assumptions for the Australian dollar to the U.S. dollar, as well as other the exchange rates being approximately consistent with current levels; (v) certain price assumptions for gold, copper and oil; (vi) prices for key supplies being approximately consistent with current levels; (vii) the accuracy of our current mineral reserve and mineralized material estimates; (viii) the acceptable outcome of negotiation of the amendment to the Contract of Work and/or resolution of export issues in Indonesia other assumptions noted herein. Where the Company expresses or implies an expectation or belief as to future events or results, such expectation or belief is expressed in good faith and believed to have a reasonable basis. However, such statements are subject to risks, uncertainties and other factors, which could cause actual results to differ materially from future results expressed, projected or implied by the “forward-looking statements”. Such risks include, but are not limited to, gold and other metals price volatility, currency fluctuations, increased production costs and variances in ore grade or recovery rates from those assumed in mining plans, political and operational risks, community relations, conflict resolution and outcome of projects or oppositions and governmental regulation and judicial outcomes. For a more detailed discussion of such risks and other factors, see the Company’s Form 10-Q, filed on or about July 22, 2015, with the Securities and Exchange Commission (SEC), as well as the Company’s other SEC filings. The Company does not undertake any obligation to release publicly revisions to any “forward-looking statement,” including, without limitation, outlook, to reflect events or circumstances after the date of this news release, or to reflect the occurrence of unanticipated events, except as may be required under applicable securities laws. Investors should not assume that any lack of update to a previously issued “forward-looking statement” constitutes a reaffirmation of that statement. Continued reliance on “forward-looking statements” is at investors’ own risk.

Investors are reminded that this news release should be read in conjunction with Newmont’s most recent Form 10-Q (available at www.newmont.com).

______________________________________

1

 

Non-GAAP measure. See page 10 for reconciliation to net income.

2

Non-GAAP measure. See page 11 for reconciliation.

3

Non-GAAP measure. See page 12 for reconciliation.

4

Non-GAAP measure. See page 13-16 for reconciliation.

5

Outlook constitutes forward-looking statements, which are subject to risk and uncertainties. See Cautionary Note on page 18.

 

Contact:
Newmont Mining Corporation
Investor Contacts
Meredith Bandy, 303-837-5143
[email protected]
or
Matt Eichmann, 303-837-5287
[email protected]
or
Media Contact
Omar Jabara, 303-837-5114
[email protected]

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