checkAd

Newmont Announces Third Quarter 2021 Results

Newmont Corporation (NYSE: NEM, TSX: NGT) (Newmont or the Company) today announced third quarter 2021 results.

THIRD QUARTER 2021 HIGHLIGHTS

  • Produced 1.45 million attributable ounces of gold and 315 thousand attributable gold equivalent ounces from co-products
  • Reported gold CAS* of $830 per ounce and AISC* of $1,120 per ounce
  • Updated full-year guidance of 6.0 million ounces of attributable gold production, $790 per ounce of CAS and $1,050 per ounce of AISC**, reaffirming original guidance of 1.3 million gold equivalent ounces from copper, silver, lead and zinc
  • Generated $1.1 billion of cash from continuing operations and $735 million of Free Cash Flow (97 percent attributable to Newmont)*
  • Declared third quarter dividend of $0.55 per share, consistent with the previous quarter***
  • Completed $99 million of share repurchases from $1 billion buyback program***
  • Ended the quarter with $4.6 billion of consolidated cash and $7.6 billion of liquidity with a net debt to adjusted EBITDA* ratio of 0.2x
  • Delivered the gold industry’s first Autonomous Haulage System (AHS) fleet, improving safety and long-term productivity at Boddington
  • Advancing near-term projects, including Tanami Expansion 2, Ahafo North and the mining method change at Subika Underground
  • Progressing Yanacocha Sulfides, investing at least $500M through 2022 with a full funds decision expected in the second half of 2022

"Newmont delivered on a challenging third quarter performance with $1.3 billion in adjusted EBITDA and $735 million in free cash flow, building momentum for a strong fourth quarter," said Tom Palmer, Newmont President and Chief Executive Officer. "Supported by our clear strategic focus and proven operating model, we continue to apply our disciplined approach to capital allocation. A year ago, we announced our industry-leading dividend framework, establishing a clear pathway for stable and predictable returns. Over the last four quarters, Newmont has steadily reinvested in our operations while returning more than $2 billion dollars to shareholders through dividends and share buybacks, demonstrating our confidence in the long-term value of our business and our ability to maintain financial flexibility."

Handeln Sie Ihre Einschätzung zu Newmont Corp.!
Long
Basispreis 51,17€
Hebel 14,21
Ask 0,48
Short
Basispreis 60,34€
Hebel 9,12
Ask 0,39

Den Basisprospekt sowie die Endgültigen Bedingungen und die Basisinformationsblätter erhalten Sie bei Klick auf das Disclaimer Dokument. Beachten Sie auch die weiteren Hinweise zu dieser Werbung.

- Tom Palmer, Newmont President and Chief Executive Officer

___________________________

*

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

**

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

***

 

See cautionary statement and endnotes at the end of this release, including with respect to future dividends and share buybacks. Note that the buyback figure above excludes $15 million disclosed in Q2 2021 settled after June 30, 2021.

THIRD QUARTER 2021 FINANCIAL AND PRODUCTION SUMMARY

 

Q3'21

Q2'21

Q1'21

Q3'20

Attributable gold production (million ounces)

1.45

 

 

1.45

 

1.46

 

1.54

 

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

$

830

 

 

$

755

 

$

752

 

$

756

 

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

$

1,120

 

 

$

1,035

 

$

1,039

 

$

1,020

 

GAAP net income (loss) (US $ millions)

$

(8

)

 

$

640

 

$

538

 

$

611

 

Adjusted net income (US $ millions)

$

483

 

 

$

670

 

$

594

 

$

697

 

Adjusted EBITDA (US $ millions)

$

1,316

 

 

$

1,591

 

$

1,457

 

$

1,663

 

Cash flow from continuing operations (US $ millions)

$

1,133

 

 

$

993

 

$

841

 

$

1,597

 

Capital expenditures (US $ millions)

$

398

 

 

$

415

 

$

399

 

$

296

 

Free cash flow (US $ millions)

$

735

 

 

$

578

 

$

442

 

$

1,301

 

Attributable gold production1 decreased 6 percent to 1,449 thousand ounces from the prior year quarter primarily due to lower throughput at Nevada Gold Mines as a result of a mechanical failure in May 2021 which resulted in a partial shutdown of the Goldstrike mill at Carlin until it was fully repaired in September 2021, lower leach production, mill recovery and ore grade milled at CC&V, lower throughput at Tanami as the mine was placed under care and maintenance in July 2021 and lower throughput, grade milled and recovery at Boddington. These decreases were partially offset by higher throughput at Cerro Negro due to reduced operations in the prior year quarter in response to Covid.

Gold CAS increased 4 percent to $1,175 million from the prior year quarter. Gold CAS per ounce2 increased 10 percent to $830 per ounce from the prior year quarter primarily due to lower gold ounces sold, higher diesel costs, an unfavorable Australian dollar foreign currency exchange rate and higher royalty payments at Akyem and Nevada Gold Mines. These increases were partially offset by a build of inventory.

Gold AISC3 increased 10 percent to $1,120 per ounce from the prior year quarter primarily due to higher CAS per ounce and higher sustaining capital spend. These increases were partially offset by lower treatment and refining costs.

Attributable gold equivalent ounce (GEO) production from other metals increased 15 percent to 315 thousand ounces primarily due to higher throughput and recoveries at Peñasquito.

CAS from other metals totaled $192 million for the quarter. CAS per GEO2 increased 15 percent to $638 per ounce from the prior year quarter primarily due to higher allocation of costs to other metals and higher concentrate selling expenses at Peñasquito and Boddington. These increases were partially offset by higher gold equivalent ounces sold. AISC per GEO3 increased 15 percent to $887 per ounce primarily due to higher CAS per GEO and higher sustaining capital spend.

Net loss from continuing operations attributable to Newmont stockholders was $(8) million or $(0.01) per diluted share, a decrease of $619 million from the prior year quarter primarily due to the loss recognized on the pending sale of the Conga mill assets of $571 million, lower average realized gold prices, lower gold sales volumes, unrealized losses on marketable and other equity securities, higher CAS and higher reclamation and remediation charges. These decreases were partially offset by lower income tax expense and lower impairment of long-lived assets.

Adjusted net income4 was $483 million or $0.60 per diluted share, compared to $697 million or $0.86 per diluted share in the prior year quarter. Primary adjustments to third quarter net income include the loss recognized on the pending sale of the Conga mill assets, changes in the fair value of investments, reclamation and remediation charges and valuation allowance and other tax adjustments.

Adjusted EBITDA5 decreased 21 percent to $1,316 million for the quarter, compared to $1,663 million for the prior year quarter.

Revenue decreased 9 percent from the prior year quarter to $2,895 million primarily due to lower average realized gold prices and lower gold sales volumes.

Average realized price6 for gold was $1,778, a decrease of $135 per ounce over the prior year quarter. Average realized gold price includes $1,784 per ounce of gross price received, the favorable impact of $4 per ounce mark-to-market on provisionally-priced sales and reductions of $10 per ounce for treatment and refining charges.

Capital expenditures7 increased 34 percent from the prior year quarter to $398 million primarily due to higher sustaining capital spend from sites that were placed into care and maintenance in response to Covid during 2020 and higher development capital spend. Development capital expenditures in 2021 primarily include advancing Tanami Expansion 2, Yanacocha Sulfides, Ahafo North, the Subika Mining Method Change, Cerro Negro expansion projects, Quecher Main, Pamour, the Power Generation Civil Upgrade, Goldrush Complex and Turquoise Ridge 3rd shaft.

Consolidated operating cash flow from continuing operations decreased 29 percent from the prior year quarter to $1,133 million primarily due to lower average realized gold prices and lower gold sales volumes, an increase in tax payments and an increase in prepaid assets. Free Cash Flow8 also decreased to $735 million primarily due to lower operating cash flow and higher capital expenditures as described above.

Balance sheet and liquidity ended the quarter with $4.6 billion of consolidated cash and approximately $7.6 billion of liquidity; reported net debt to adjusted EBITDA of 0.2x9.

Nevada Gold Mines (NGM) attributable gold production was 308 thousand ounces with CAS of $768 per ounce and AISC of $945 per ounce for the third quarter. EBITDA10 for NGM was $293 million.

Pueblo Viejo (PV) attributable gold production was 85 thousand ounces for the quarter. Pueblo Viejo EBITDA10 was $108 million and cash distributions received for the Company's equity method investment totaled $69 million in the third quarter.

COVID UPDATE

Newmont continues to maintain wide-ranging protective measures for its workforce and neighboring communities, including screening, physical distancing, deep cleaning and avoiding exposure for at-risk individuals. The Company incurred incremental Covid specific costs of $24 million during the quarter for activities such as additional health and safety procedures, increased transportation and community fund contributions. During the second quarter of 2020, the Newmont Global Community Support Fund was established to help host communities, governments and employees combat the Covid pandemic. Amounts distributed from this fund were $1 million during the quarter and have been adjusted from certain non-GAAP metrics. The remaining $23 million is not adjusted from our non-GAAP metrics.

We have mobilized a Covid vaccine working group with representatives from across the globe. Newmont views vaccination as critical in the fight against Covid and actively encourages our workforce to get vaccinated as they become eligible. We are working to support authorities, through our Global Community Support Fund, to improve the availability and deployment of vaccines to our workforce and host communities.

PROJECTS UPDATE

Newmont’s capital-efficient project pipeline supports improving production, lowering costs and extending mine life. Funding for the current development capital projects Tanami Expansion 2 and Ahafo North has been approved and these projects are in the execution stage. The Company has included the Yanacocha Sulfides project in its long-term outlook as the project is currently scheduled to be approved for full funding in the second half of 2022. Additional development projects, not listed below, represent incremental improvements to the Company's outlook.

  • Tanami Expansion 2 (Australia) secures Tanami’s future as a long-life, low-cost producer with potential to extend mine life beyond 2040 through the addition of a 1,460 meter hoisting shaft and supporting infrastructure to achieve 3.5 million tonnes per year of production and provide a platform for future growth. The expansion is expected to increase average annual gold production by approximately 150,000 to 200,000 ounces per year for the first five years and is expected to reduce operating costs by approximately 10 percent. Capital costs for the project are estimated to be between $850 million and $950 million with a commercial production date in the first half of 2024.
  • Ahafo North (Africa) expands our existing footprint in Ghana with four open pit mines and a stand-alone mill located approximately 30 kilometers from the Company’s Ahafo South operations. The project is expected to add between 275,000 and 325,000 ounces per year with all-in sustaining costs between $600 to $700 per ounce for the first five full years of production (2024-2028). Capital costs for the project are estimated to be between $750 and $850 million with a construction completion date in the second half of 2023 and commercial production in early 2024. Ahafo North is the best unmined gold deposit in West Africa with approximately 3.5 million ounces of Reserves and more than 1 million ounces of Measured and Indicated and Inferred Resource11 and significant upside potential to extend beyond Ahafo North’s current 13-year mine life.
  • Yanacocha Sulfides (South America)12 will develop the first phase of sulfide deposits and an integrated processing circuit, including an autoclave to process gold, copper and silver feedstock. The project is expected to add 500,000 gold equivalent ounces per year with all-in sustaining costs between $700 to $800 per ounce for the first five full years of production. An investment decision is expected in the second half of 2022 with a three year development period. The first phase focuses on developing the Yanacocha Verde and Chaquicocha deposits to extend Yanacocha’s operations beyond 2040 with second and third phases having the potential to extend life for multiple decades.
___________________________

1

Attributable gold production for the third quarter 2021 includes 85 thousand ounces 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 Costs applicable to sales.

4

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

5

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

6

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

7

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

8

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

9

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

10

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

11

See note to U.S. Investors at the end of this release; such resource estimate for Ahafo North is comprised of 610,000 ounces of Measured and Indicated Resource and 410,000 ounces of Inferred Resource as at December 31, 2020.

12

Consolidated basis.

UPDATED OUTLOOK

Newmont is providing an updated 2021 outlook due to the continued impact from Covid and other challenges experienced in the year. Further updates about Newmont's long-term guidance will be provided in December 2021. Please see the cautionary statement in the end notes for additional information. For further discussion, investors are encouraged to attend Newmont’s Third Quarter 2021 Earnings Conference Call.

Newmont's updated 2021 outlook includes approximately 6.0 million ounces of attributable gold production and approximately 1.3 million gold equivalent ounces from copper, silver, lead and zinc. The revised outlook for attributable gold production includes adjustments for operational challenges at Boddington and Nevada Gold Mines, as well as the continued impact from the global pandemic, primarily in Canada and Australia.

Boddington experienced challenges from severe weather, shovel reliability, operational delays associated with managing bench hygiene and the continued ramp-up of AHS to full productivity. As a result, Boddington delivered lower ex-pit tons than expected, with full-year 2021 gold production anticipated to be approximately 140 thousand ounces below original guidance estimates. Nevada Gold Mines is also experiencing challenges. Carlin and Cortez are expected to be at the low end of their annual guidance ranges, and Turquoise Ridge is expected to be below its annual guidance range. Additionally, the global pandemic has continued to impact many of our operations. Tanami was placed under care and maintenance in late-June and July as a result of Covid restrictions, reducing the site’s full-year production by approximately 40 thousand ounces. In addition, Newmont continues to experience lower productivity as a result of Covid-related absenteeism and a tightening of the labor market in Canada. We expect these sites to be at the low end or below their annual production guidance ranges.

Updated 2021 Costs applicable to sales (CAS) outlook are expected to be $790 per ounce and All-in sustaining costs (AISC) are expected to be $1,050 per ounce. The revised outlook includes the impact from lower production volumes and higher royalties and production taxes at higher gold prices.

Updated 2021 attributable development capital expenditures are expected to be approximately $700 million. The revised outlook includes a decrease of $150 million largely due to deferred spending associated with advancing Tanami Expansion 2.

Newmont 2021 Outlook a

Updated

(as of Oct. 28, 2021)

Previous (+/-5%)

(as of Dec. 8, 2020)

Gold Price Assumption ($/oz)

$1,800

$1,200

Consolidated Gold Production (Moz)

5.9

6.4

Attributable Gold Production (Moz) b

6.0

6.5

Consolidated Gold CAS ($/oz)

790

750

Consolidated Gold All-in Sustaining Costs ($/oz) c

1,050

970

Consolidated Co-Product GEO Production (Moz) d

1.3

1.3

Attributable Co-Product GEO Production (Moz) d

1.3

1.3

Consolidated GEO CAS ($/oz) d

600

600

Consolidated GEO All-in Sustaining Costs ($/oz) c,d

880

880

Consolidated Sustaining Capital Expenditures ($M)

1,000

1,000

Consolidated Development Capital Expenditures ($M)

750

900

Attributable Sustaining Capital Expenditures ($M)

950

950

Attributable Development Capital Expenditures ($M)

700

850

General & Administrative ($M)

260

260

Interest Expense ($M)

275

275

Depreciation and Amortization ($M)

2,350

2,500

Exploration & Advanced Projects ($M)

390

390

Adjusted Tax Rate e

34% - 38%

34% - 38%

Federal Tax Rate

27% - 30%

27% - 30%

Mining Tax Rate

6% - 9%

6% - 9%

a

2021 outlook projections used in this presentation are considered forward-looking statements and represent management’s good faith estimates or expectations of future production results as of October 28, 2021. Outlook is based upon certain assumptions, including, but not limited to, metal prices, oil prices, certain exchange rates and other assumptions. For example, 2021 Outlook includes actual results through September 30, 2021 and assumes $1,800/oz Au, $25/oz Ag, $4.00/lb Cu, $1.20/lb Zn, $0.95/lb Pb, $0.75 USD/AUD exchange rate, $0.78 USD/CAD exchange rate and $65/barrel WTI for the fourth quarter of 2021. Production, CAS, AISC and capital estimates exclude projects that have not yet been approved, except for Yanacocha Sulfides which is included in Outlook as the development project is expected to reach execution stage in the second half of 2022. 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. 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 at the end of this release.

b

Attributable gold production outlook includes the Company’s equity investment (40%) in Pueblo Viejo with ~325Koz in 2021; does not include the Company’s other equity investments. Attributable gold production outlook represents the Company's 51.35% interest for Yanacocha and a 75% interest for Merian.

c

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 2021 CAS outlook.

d

Gold equivalent ounces (GEO) is calculated as pounds or ounces produced multiplied by the ratio of the other metal’s price to the gold price, using Gold ($1,200/oz.), Copper ($2.75/lb.), Silver ($22.00/oz.), Lead ($0.90/lb.), and Zinc ($1.05/lb.) pricing.

e

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

Three Months Ended September 30,

 

Nine Months Ended September 30,

Operating Results

2021

2020

% Change

 

2021

2020

% Change

Attributable Sales (koz)

 

 

 

 

 

 

 

Attributable gold ounces sold (1)

1,357

 

1,429

 

(5

)%

 

4,101

 

3,996

 

3

%

Attributable gold equivalent ounces sold

301

 

248

 

21

%

 

930

 

780

 

19

%

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

Average realized gold price

$

1,778

 

$

1,913

 

(7

)%

 

$

1,783

 

$

1,745

 

2

%

Average realized copper price

$

3.99

 

$

2.99

 

33

%

 

$

4.19

 

$

2.49

 

68

%

Average realized silver price

$

18.34

 

$

21.69

 

(15

)%

 

$

20.32

 

$

16.66

 

22

%

Average realized lead price

$

0.99

 

$

0.73

 

36

%

 

$

0.96

 

$

0.69

 

39

%

Average realized zinc price

$

1.24

 

$

1.01

 

23

%

 

$

1.21

 

$

0.77

 

57

%

 

 

 

 

 

 

 

 

Attributable Production (koz)

 

 

 

 

 

 

 

North America

384

 

414

 

(7

)%

 

1,194

 

1,022

 

17

%

South America

188

 

165

 

14

%

 

551

 

536

 

3

%

Australia

274

 

309

 

(11

)%

 

842

 

861

 

(2

)%

Africa

210

 

229

 

(8

)%

 

617

 

608

 

1

%

Nevada

308

 

337

 

(9

)%

 

895

 

992

 

(10

)%

Total Gold (excluding equity method investments)

1,364

 

1,454

 

(6

)%

 

4,099

 

4,019

 

2

%

Pueblo Viejo (40%) (2)

85

 

87

 

(2

)%

 

254

 

256

 

(1

)%

Total Gold

1,449

 

1,541

 

(6

)%

 

4,353

 

4,275

 

2

%

 

 

 

 

 

 

 

 

North America

275

 

238

 

16

%

 

820

 

656

 

25

%

Australia

40

 

35

 

14

%

 

115

 

94

 

22

%

Total Gold Equivalent Ounces

315

 

273

 

15

%

 

935

 

750

 

25

%

 

 

 

 

 

 

 

 

CAS Consolidated ($/oz, $/GEO)

 

 

 

 

 

 

 

North America

$

800

 

$

762

 

5

%

 

$

767

 

$

792

 

(3

)%

South America

$

958

 

$

885

 

8

%

 

$

822

 

$

824

 

%

Australia

$

788

 

$

690

 

14

%

 

$

767

 

$

712

 

8

%

Africa

$

886

 

$

693

 

28

%

 

$

804

 

$

707

 

14

%

Nevada

$

768

 

$

761

 

1

%

 

$

755

 

$

764

 

(1

)%

Total Gold

$

830

 

$

756

 

10

%

 

$

779

 

$

762

 

2

%

Total Gold (by-product)

$

698

 

$

641

 

9

%

 

$

629

 

$

686

 

(8

)%

 

 

 

 

 

 

 

 

North America

$

595

 

$

513

 

16

%

 

$

564

 

$

539

 

5

%

Australia

$

914

 

$

840

 

9

%

 

$

913

 

$

842

 

8

%

Total Gold Equivalent Ounces

$

638

 

$

556

 

15

%

 

$

606

 

$

575

 

5

%

 

 

 

 

 

 

 

 

AISC Consolidated ($/oz, $/GEO)

 

 

 

 

 

 

 

North America

$

1,026

 

$

1,003

 

2

%

 

$

988

 

$

1,066

 

(7

)%

South America

$

1,276

 

$

1,162

 

10

%

 

$

1,119

 

$

1,111

 

1

%

Australia

$

1,025

 

$

889

 

15

%

 

$

1,040

 

$

914

 

14

%

Africa

$

1,114

 

$

865

 

29

%

 

$

1,023

 

$

889

 

15

%

Nevada

$

945

 

$

904

 

5

%

 

$

931

 

$

936

 

(1

)%

Total Gold

$

1,120

 

$

1,020

 

10

%

 

$

1,064

 

$

1,046

 

2

%

Total Gold (by-product)

$

1,041

 

$

940

 

11

%

 

$

970

 

$

1,024

 

(5

)%

 

 

 

 

 

 

 

 

North America

$

822

 

$

735

 

12

%

 

$

781

 

$

840

 

(7

)%

Australia

$

1,025

 

$

998

 

3

%

 

$

1,155

 

$

1,032

 

12

%

Total Gold Equivalent Ounces

$

887

 

$

770

 

15

%

 

$

863

 

$

862

 

%

(1)

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

(2)

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

NEWMONT CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited, in millions except per share)

 

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

 

2021

 

2020

 

2021

 

2020

 

 

 

 

 

 

 

 

Sales

$

2,895

 

 

$

3,170

 

 

$

8,832

 

 

$

8,116

 

 

 

 

 

 

 

 

 

Costs and expenses

 

 

 

 

 

 

 

Costs applicable to sales (1)

1,367

 

 

1,269

 

 

3,895

 

 

3,659

 

Depreciation and amortization

570

 

 

592

 

 

1,684

 

 

1,685

 

Reclamation and remediation

117

 

 

38

 

 

220

 

 

116

 

Exploration

60

 

 

48

 

 

147

 

 

118

 

Advanced projects, research and development

40

 

 

39

 

 

108

 

 

92

 

General and administrative

61

 

 

68

 

 

190

 

 

205

 

Care and maintenance

6

 

 

26

 

 

8

 

 

171

 

Loss on assets held for sale

571

 

 

 

 

571

 

 

 

Other expense, net

37

 

 

92

 

 

126

 

 

184

 

 

2,829

 

 

2,172

 

 

6,949

 

 

6,230

 

Other income (expense):

 

 

 

 

 

 

 

Gain on asset and investment sales, net

3

 

 

1

 

 

46

 

 

593

 

Other income (loss), net

(74

)

 

(44

)

 

(106

)

 

(35

)

Interest expense, net of capitalized interest

(66

)

 

(75

)

 

(208

)

 

(235

)

 

(137

)

 

(118

)

 

(268

)

 

323

 

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

(71

)

 

880

 

 

1,615

 

 

2,209

 

Income and mining tax benefit (expense)

(222

)

 

(305

)

 

(798

)

 

(446

)

Equity income (loss) of affiliates

39

 

 

53

 

 

138

 

 

119

 

Net income (loss) from continuing operations

(254

)

 

628

 

 

955

 

 

1,882

 

Net income (loss) from discontinued operations

11

 

 

228

 

 

42

 

 

145

 

Net income (loss)

(243

)

 

856

 

 

997

 

 

2,027

 

Net loss (income) attributable to noncontrolling interests

246

 

 

(17

)

 

215

 

 

(22

)

Net income (loss) attributable to Newmont stockholders

$

3

 

 

$

839

 

 

$

1,212

 

 

$

2,005

 

 

 

 

 

 

 

 

 

Net income (loss) attributable to Newmont stockholders:

 

 

 

 

 

 

 

Continuing operations

$

(8

)

 

$

611

 

 

$

1,170

 

 

$

1,860

 

Discontinued operations

11

 

 

228

 

 

42

 

 

145

 

 

$

3

 

 

$

839

 

 

$

1,212

 

 

$

2,005

 

 

 

 

 

 

 

 

 

Weighted average common shares (millions):

 

 

 

 

 

 

 

Basic

799

 

 

803

 

 

800

 

 

804

 

Effect of employee stock-based awards

1

 

 

3

 

 

2

 

 

2

 

Diluted

800

 

 

806

 

 

802

 

 

806

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

Basic:

 

 

 

 

 

 

 

Continuing operations

$

(0.01

)

 

$

0.76

 

 

$

1.47

 

 

$

2.31

 

Discontinued operations

0.01

 

 

0.28

 

 

0.05

 

 

0.18

 

 

$

 

 

$

1.04

 

 

$

1.52

 

 

$

2.49

 

Diluted: (2)

 

 

 

 

 

 

 

Continuing operations

$

(0.01

)

 

$

0.76

 

 

$

1.46

 

 

$

2.31

 

Discontinued operations

0.01

 

 

0.28

 

 

0.05

 

 

0.18

 

 

$

 

 

$

1.04

 

 

$

1.51

 

 

$

2.49

 

(1)

Excludes Depreciation and amortization and Reclamation and remediation.

(2)

For the three months ended September 30, 2021, potentially dilutive shares were excluded in the computation of diluted loss per common share attributable to Newmont stockholders as they were antidilutive.

NEWMONT CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited, in millions)

 

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

 

2021

 

2020

 

2021

 

2020

Operating activities:

 

 

 

 

 

 

 

Net income (loss)

$

(243

)

 

$

856

 

 

$

997

 

 

$

2,027

 

Adjustments:

 

 

 

 

 

 

 

Depreciation and amortization

570

 

 

592

 

 

1,684

 

 

1,685

 

Loss on assets held for sale

571

 

 

 

 

571

 

 

 

Gain on asset and investment sales, net

(3

)

 

(1

)

 

(46

)

 

(593

)

Net loss (income) from discontinued operations

(11

)

 

(228

)

 

(42

)

 

(145

)

Reclamation and remediation

112

 

 

35

 

 

208

 

 

107

 

Change in fair value of investments

96

 

 

(57

)

 

180

 

 

(191

)

Stock-based compensation

17

 

 

17

 

 

55

 

 

55

 

Equity earnings in affiliates, net of distributions received

29

 

 

22

 

 

(26

)

 

(12

)

Deferred income taxes

(24

)

 

72

 

 

(10

)

 

(72

)

Impairment of investments

1

 

 

 

 

1

 

 

93

 

Charges from pension settlement

 

 

82

 

 

 

 

82

 

Charges from debt extinguishment

 

 

 

 

 

 

77

 

Other non-cash adjustments

5

 

 

39

 

 

(27

)

 

41

 

Net change in operating assets and liabilities

13

 

 

168

 

 

(578

)

 

50

 

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

1,133

 

 

1,597

 

 

2,967

 

 

3,204

 

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

11

 

 

(1

)

 

13

 

 

(8

)

Net cash provided by (used in) operating activities

1,144

 

 

1,596

 

 

2,980

 

 

3,196

 

 

 

 

 

 

 

 

 

Investing activities:

 

 

 

 

 

Additions to property, plant and mine development

(398

)

 

(296

)

 

(1,212

)

 

(904

)

Acquisitions, net

 

 

 

 

(328

)

 

 

Contributions to equity method investees

(42

)

 

(2

)

 

(114

)

 

(16

)

Proceeds from sales of investments

23

 

 

35

 

 

107

 

 

305

 

Return of investment from equity method investees

 

 

 

 

18

 

 

43

 

Purchases of investments

(2

)

 

 

 

(18

)

 

(33

)

Proceeds from sales of mining operations and other assets, net

3

 

 

2

 

 

4

 

 

1,137

 

Other

26

 

 

(1

)

 

26

 

 

45

 

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

(390

)

 

(262

)

 

(1,517

)

 

577

 

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

 

 

(75

)

 

 

 

(75

)

Net cash provided by (used in) investing activities

(390

)

 

(337

)

 

(1,517

)

 

502

 

 

 

 

 

 

 

 

 

Financing activities:

 

 

 

 

 

Dividends paid to common stockholders

(440

)

 

(201

)

 

(1,321

)

 

(514

)

Repayment of debt

 

 

 

 

(550

)

 

(1,160

)

Repurchases of common stock

(114

)

 

 

 

(248

)

 

(321

)

Distributions to noncontrolling interests

(58

)

 

(55

)

 

(155

)

 

(143

)

Funding from noncontrolling interests

25

 

 

27

 

 

73

 

 

82

 

Payments on lease and other financing obligations

(18

)

 

(16

)

 

(54

)

 

(49

)

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

(2

)

 

(6

)

 

(31

)

 

(45

)

Proceeds from issuance of debt, net

 

 

 

 

 

 

985

 

Other

(90

)

 

9

 

 

(77

)

 

46

 

Net cash provided by (used in) financing activities

(697

)

 

(242

)

 

(2,363

)

 

(1,119

)

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

(3

)

 

4

 

 

(3

)

 

4

 

Net change in cash, cash equivalents and restricted cash

54

 

 

1,021

 

 

(903

)

 

2,583

 

Cash, cash equivalents and restricted cash at beginning of period

4,691

 

 

3,911

 

 

5,648

 

 

2,349

 

Cash, cash equivalents and restricted cash at end of period

$

4,745

 

 

$

4,932

 

 

$

4,745

 

 

$

4,932

 

 

 

 

 

 

 

 

 

NEWMONT CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited, in millions)

 

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

 

2021

 

2020

 

2021

 

2020

Reconciliation of cash, cash equivalents and restricted cash:

 

 

 

 

 

Cash and cash equivalents

$

4,636

 

$

4,828

 

$

4,636

 

$

4,828

Restricted cash included in Other current assets

2

 

 

2

 

Restricted cash included in Other non-current assets

107

 

104

 

107

 

104

Total cash, cash equivalents and restricted cash

$

4,745

 

$

4,932

 

$

4,745

 

$

4,932

NEWMONT CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(unaudited, in millions)

 

 

At September 30,
2021

 

At December 31,
2020

ASSETS

 

 

 

Cash and cash equivalents

$

4,636

 

 

$

5,540

 

Trade receivables

334

 

 

449

 

Investments

157

 

 

290

 

Inventories

998

 

 

963

 

Stockpiles and ore on leach pads

941

 

 

827

 

Other current assets

406

 

 

436

 

Current assets

7,472

 

 

8,505

 

Property, plant and mine development, net

23,711

 

 

24,281

 

Investments

3,173

 

 

3,197

 

Stockpiles and ore on leach pads

1,791

 

 

1,705

 

Deferred income tax assets

313

 

 

337

 

Goodwill

2,771

 

 

2,771

 

Other non-current assets

634

 

 

573

 

Total assets

$

39,865

 

 

$

41,369

 

 

 

 

 

LIABILITIES

 

 

 

Accounts payable

$

498

 

 

$

493

 

Employee-related benefits

345

 

 

380

 

Income and mining taxes payable

305

 

 

657

 

Lease and other financing obligations

106

 

 

106

 

Debt

492

 

 

551

 

Other current liabilities

1,053

 

 

1,182

 

Current liabilities

2,799

 

 

3,369

 

Debt

4,990

 

 

5,480

 

Lease and other financing obligations

550

 

 

565

 

Reclamation and remediation liabilities

3,937

 

 

3,818

 

Deferred income tax liabilities

2,235

 

 

2,073

 

Employee-related benefits

484

 

 

493

 

Silver streaming agreement

923

 

 

993

 

Other non-current liabilities

661

 

 

699

 

Total liabilities

16,579

 

 

17,490

 

 

 

 

 

Contingently redeemable noncontrolling interest

48

 

 

34

 

 

 

 

 

EQUITY

 

 

 

Common stock

1,284

 

 

1,287

 

Treasury stock

(199

)

 

(168

)

Additional paid-in capital

18,078

 

 

18,103

 

Accumulated other comprehensive income (loss)

(190

)

 

(216

)

Retained earnings

3,739

 

 

4,002

 

Newmont stockholders' equity

22,712

 

 

23,008

 

Noncontrolling interests

526

 

 

837

 

Total equity

23,238

 

 

23,845

 

Total liabilities and equity

$

39,865

 

 

$

41,369

 

Non-GAAP Financial Measures

Non-GAAP financial measures are intended to provide additional information only and do not have any standard meaning prescribed by U.S. generally accepted accounting principles (“GAAP”). These measures should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP. Unless otherwise noted, we present the Non-GAAP financial measures of our continuing operations in the tables below.

Adjusted net income (loss)

Management uses Adjusted net income (loss) to evaluate the Company’s operating performance and for planning and forecasting future business operations. The Company believes the use of Adjusted net income (loss) allows investors and others to understand the results of the continuing operations of the Company and its direct and indirect subsidiaries relating to the sale of products, by excluding certain items that have a disproportionate impact on our results for a particular period. Adjustments to continuing operations are presented before tax and net of our partners’ noncontrolling interests, when applicable. The tax effect of adjustments is presented in the Tax effect of adjustments line and is calculated using the applicable regional tax rate. Management’s determination of the components of Adjusted net income (loss) are evaluated periodically and based, in part, on a review of non-GAAP financial measures used by mining industry analysts. Net income (loss) attributable to Newmont stockholders is reconciled to Adjusted net income (loss) as follows:

 

Three Months Ended
September 30, 2021

 

Nine Months Ended
September 30, 2021

 

 

 

per share data (1)

 

 

 

per share data (1)

 

 

 

basic

 

diluted

 

 

 

basic

 

diluted

Net income (loss) attributable to Newmont stockholders

$

3

 

 

$

 

 

$

 

 

$

1,212

 

 

$

1.52

 

 

$

1.51

 

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

(11

)

 

(0.01

)

 

(0.01

)

 

(42

)

 

(0.05

)

 

(0.05

)

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

(8

)

 

(0.01

)

 

(0.01

)

 

1,170

 

 

1.47

 

 

1.46

 

Loss on assets held for sale, net (2)

372

 

 

0.47

 

 

0.46

 

 

372

 

 

0.47

 

 

0.46

 

Change in fair value of investments (3)

96

 

 

0.12

 

 

0.12

 

 

180

 

 

0.23

 

 

0.23

 

Reclamation and remediation charges (4)

79

 

 

0.10

 

 

0.10

 

 

109

 

 

0.14

 

 

0.14

 

(Gain) loss on asset and investment sales (5)

(3

)

 

 

 

 

 

(46

)

 

(0.05

)

 

(0.05

)

Impairment of long-lived and other assets (6)

6

 

 

0.01

 

 

0.01

 

 

18

 

 

0.02

 

 

0.02

 

Settlement costs (7)

 

 

 

 

 

 

11

 

 

0.01

 

 

0.01

 

Restructuring and severance, net (8)

 

 

 

 

 

 

9

 

 

0.01

 

 

0.01

 

COVID-19 specific costs (9)

1

 

 

 

 

 

 

3

 

 

 

 

 

Impairment of investments

1

 

 

 

 

 

 

1

 

 

 

 

 

Tax effect of adjustments (10)

(167

)

 

(0.22

)

 

(0.21

)

 

(197

)

 

(0.27

)

 

(0.25

)

Valuation allowance and other tax adjustments, net (11)

106

 

 

0.13

 

 

0.13

 

 

117

 

 

0.15

 

 

0.15

 

Adjusted net income (loss) (12)

$

483

 

 

$

0.60

 

 

$

0.60

 

 

$

1,747

 

 

$

2.18

 

 

$

2.18

 

 

 

 

 

 

 

 

 

 

Weighted average common shares (millions): (13)

 

799

 

 

800

 

 

 

 

800

 

 

802

 

(1)

Per share measures may not recalculate due to rounding.

(2)

Loss on assets held for sale, net, included in Loss on assets held for sale, represents the loss recognized due to the reclassification of the Conga mill assets as held for sale during the third quarter of 2021. The assets were remeasured to fair value less costs to sell. Amounts are presented net of income (loss) attributable to noncontrolling interests of $(199) and $(199), respectively. Refer to Note 7 of the Condensed Consolidated Financial Statements for further information.

(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. For further information regarding our investments, refer to Note 14 of the Condensed Consolidated Financial Statements.

(4)

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.

(5)

(Gain) loss on asset and investment sales, included in Gain on asset and investment sales, net, primarily represents a gain on the sale of TMAC. For further information, refer to Note 9 of the Condensed Consolidated Financial Statements.

(6)

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

(7)

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

(8)

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

(9)

COVID-19 specific costs included in Other expense, net, primarily include amounts distributed from the Newmont Global Community Fund to help host communities, governments and employees combat the COVID-19 pandemic. Adjusted net income (loss) has not been adjusted for $23 and $63, respectively, of incremental COVID-19 costs incurred as a result of actions taken to protect against the impacts of the COVID-19 pandemic at our operational sites. Refer to Note 8 of the Condensed Consolidated Financial Statements for further information.

(10)

The tax effect of adjustments, included in Income and mining tax benefit (expense), represents the tax effect of adjustments in footnotes (2) through (9), as described above, and are calculated using the applicable regional tax rate.

(11)

Valuation allowance and other tax adjustments, net, included in Income and mining tax benefit (expense), is recorded for items such as foreign tax credits, alternative minimum tax credits, capital losses, disallowed foreign losses, and the effects of changes in foreign currency exchange rates on deferred tax assets and deferred tax liabilities. The adjustment for the three and nine months ended September 30, 2021 is due to increases or (decreases) to net operating losses, tax credit carryovers and other deferred tax assets subject to valuation allowance of $185 and $215 respectively, the effects of changes in foreign exchange rates on deferred tax assets and liabilities of $(11) and $(28) respectively, changes to the reserve for uncertain tax positions of $(1) and $21 respectively, and other tax adjustments of $2 and $(17), respectively. Total amount is presented net of income (loss) attributable to noncontrolling interests of $(69) and $(74), respectively.

(12)

Adjusted net income (loss) has not been adjusted for cash care and maintenance costs, included in Care and maintenance, which represent costs incurred associated with our Tanami mine site being temporarily placed into care and maintenance in response to the COVID-19 pandemic during a portion of the three and nine months ended September 30, 2021. Cash care and maintenance costs were $6 and $8 during the three and nine months ended September 30, 2021, respectively.

(13)

Adjusted net income (loss) per diluted share is calculated using diluted common shares in accordance with U.S. GAAP. For the three months ended September 30, 2021, potentially dilutive shares of 1 million were excluded from the computation of diluted loss per common share attributable to Newmont stockholders in the Condensed Consolidated Statement of Operations as they were antidilutive. These shares were included in the computation of adjusted net income per diluted share for the three months ended September 30, 2021.

 

Three Months Ended
September 30, 2020

 

Nine Months Ended
September 30, 2020

 

 

 

per share data (1)

 

 

 

per share data (1)

 

 

 

basic

 

diluted

 

 

 

basic

 

diluted

Net income (loss) attributable to Newmont stockholders

$

839

 

 

$

1.04

 

 

$

1.04

 

 

$

2,005

 

 

$

2.49

 

 

$

2.49

 

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

(228

)

 

(0.28

)

 

(0.28

)

 

(145

)

 

(0.18

)

 

(0.18

)

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

611

 

 

0.76

 

 

0.76

 

 

1,860

 

 

2.31

 

 

2.31

 

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

(1

)

 

 

 

 

 

(593

)

 

(0.73

)

 

(0.73

)

Change in fair value of investments (3)

(57

)

 

(0.07

)

 

(0.07

)

 

(191

)

 

(0.24

)

 

(0.24

)

Impairment of investments (4)

 

 

 

 

 

 

93

 

 

0.11

 

 

0.11

 

Pension settlements (5)

83

 

 

0.10

 

 

0.10

 

 

85

 

 

0.10

 

 

0.10

 

Loss on debt extinguishment (6)

 

 

 

 

 

 

77

 

 

0.09

 

 

0.09

 

COVID-19 specific costs, net (7)

27

 

 

0.03

 

 

0.03

 

 

62

 

 

0.08

 

 

0.08

 

Settlement costs, net (8)

23

 

 

0.03

 

 

0.03

 

 

31

 

 

0.04

 

 

0.04

 

Impairment of long-lived and other assets (9)

24

 

 

0.03

 

 

0.03

 

 

29

 

 

0.04

 

 

0.04

 

Goldcorp transaction and integration costs (10)

 

 

 

 

 

 

23

 

 

0.03

 

 

0.03

 

Restructuring and severance, net (11)

9

 

 

0.01

 

 

0.01

 

 

11

 

 

0.01

 

 

0.01

 

Tax effect of adjustments (12)

(32

)

 

(0.03

)

 

(0.04

)

 

93

 

 

0.11

 

 

0.11

 

Valuation allowance and other tax adjustments, net (13)

10

 

 

0.01

 

 

0.01

 

 

(296

)

 

(0.35

)

 

(0.36

)

Adjusted net income (loss) (14)

$

697

 

 

$

0.87

 

 

$

0.86

 

 

$

1,284

 

 

$

1.60

 

 

$

1.59

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares (millions): (15)

 

 

803

 

 

806

 

 

 

 

804

 

 

806

 

(1)

Per share measures may not recalculate due to rounding.

(2)

(Gain) loss on asset and investment sales, included in Gain on asset and investment sales, net, primarily represents gains on the sale of Kalgoorlie, Continental, and Red Lake. For further information, refer to Note 9 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 investments in current and non-current marketable equity securities and our investment instruments. For further information regarding our investments, refer to Note 14 of the Condensed Consolidated Financial Statements.

(4)

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

(5)

Pension settlements, included in Other income (loss), net, represent pension settlement charges.

(6)

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

(7)

COVID-19 specific costs, net, included in Other expense, net, represent incremental direct costs incurred as a result of actions taken to protect against the impacts of the COVID-19 pandemic. Amounts are presented net of income (loss) attributable to noncontrolling interests of $(5) and $(5), respectively.

(8)

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

(9)

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

(10)

Goldcorp transaction and integration costs, included in Other expense, net, primarily represent subsequent integration costs incurred during 2020 related to the Newmont Goldcorp transaction.

(11)

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

(12)

The tax effect of adjustments, included in Income and mining tax benefit (expense), represents the tax effect of adjustments in footnotes (2) through (11), as described above, and are calculated using the applicable regional tax rate.

(13)

Valuation allowance and other tax adjustments, included in Income and mining tax benefit (expense), is recorded for items such as foreign tax credits, alternative minimum tax credits, capital losses, 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 nine months ended September 30, 2020 is due to a net increase or (decrease) to net operating losses, tax credit carryovers and other deferred tax assets subject to valuation allowance of $7 and $(113), respectively, the effects of changes in foreign exchange rates on deferred tax assets and liabilities of $14 and $(173), respectively, changes to the reserve for uncertain tax positions of $(10) and $(19), respectively, and other tax adjustments of $3 and $35, respectively. Total amount is presented net of income (loss) attributable to noncontrolling interests of $(4) and $(26), respectively.

(14)

Adjusted net income (loss) has not been adjusted for $25 and $158 of cash and $9 and $83 of non-cash care and maintenance costs, included in Care and maintenance and Depreciation and amortization, respectively, which primarily represent costs associated with our Musselwhite, Éléonore, Peñasquito, Yanacocha and Cerro Negro sites being temporarily placed into care and maintenance in response to the COVID-19 pandemic during a portion of the three and nine months ended September 30, 2020, respectively. Amounts are presented net of income (loss) attributable to noncontrolling interests of $1, $13, $— and $3, respectively.

(15)

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

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

Management uses Earnings before interest, taxes and depreciation and amortization (“EBITDA”) and EBITDA adjusted for non-core or certain items that have a disproportionate impact on our results for a particular period (“Adjusted EBITDA”) as non-GAAP measures to evaluate the Company’s operating performance. EBITDA and Adjusted EBITDA do not represent, and should not be considered an alternative to, net income (loss), operating income (loss), or cash flow from operations as those terms are defined by GAAP, and do not necessarily indicate whether cash flows will be sufficient to fund cash needs. Although Adjusted EBITDA and similar measures are frequently used as measures of operations and the ability to meet debt service requirements by other companies, our calculation of Adjusted EBITDA is not necessarily comparable to such other similarly titled captions of other companies. The Company believes that Adjusted EBITDA provides useful information to investors and others in understanding and evaluating our operating results in the same manner as our management and Board of Directors. Management’s determination of the components of Adjusted EBITDA are evaluated periodically and based, in part, on a review of non-GAAP financial measures used by mining industry analysts. Net income (loss) attributable to Newmont stockholders is reconciled to EBITDA and Adjusted EBITDA as follows:

Three Months Ended
September 30,

 

Nine Months Ended
September 30,

2021

 

2020

 

2021

 

2020

Net income (loss) attributable to Newmont stockholders

$

3

 

 

$

839

 

 

$

1,212

 

 

$

2,005

 

Net income (loss) attributable to noncontrolling interests

(246

)

 

17

 

 

(215

)

 

22

 

Net loss (Income) from discontinued operations

(11

)

 

(228

)

 

(42

)

 

(145

)

Equity loss (income) of affiliates

(39

)

 

(53

)

 

(138

)

 

(119

)

Income and mining tax expense (benefit)

222

 

 

305

 

 

798

 

 

446

 

Depreciation and amortization

570

 

 

592

 

 

1,684

 

 

1,685

 

Interest expense, net of capitalized interest

66

 

 

75

 

 

208

 

 

235

 

EBITDA

$

565

 

 

$

1,547

 

 

$

3,507

 

 

$

4,129

 

Adjustments:

 

 

 

 

 

 

 

Loss on assets held for sale (1)

$

571

 

 

$

 

 

$

571

 

 

$

 

Change in fair value of investments (2)

96

 

 

(57

)

 

180

 

 

(191

)

Reclamation and remediation charges (3)

79

 

 

 

 

109

 

 

 

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

(3

)

 

(1

)

 

(46

)

 

(593

)

Impairment of long-lived and other assets (5)

6

 

 

24

 

 

18

 

 

29

 

Settlement costs (6)

 

 

26

 

 

11

 

 

34

 

Restructuring and severance (7)

 

 

9

 

 

10

 

 

12

 

COVID-19 specific costs (8)

1

 

 

32

 

 

3

 

 

67

 

Impairment of investments (9)

1

 

 

 

 

1

 

 

93

 

Pension settlements (10)

 

 

83

 

 

 

 

85

 

Loss on debt extinguishment (11)

 

 

 

 

 

 

77

 

Goldcorp transaction and integration costs (12)

 

 

 

 

 

 

23

 

Adjusted EBITDA (13)

$

1,316

 

 

$

1,663

 

 

$

4,364

 

 

$

3,765

 

(1)

Loss on assets held for sale, included in Loss on assets held for sale, represents the loss recognized due to the reclassification of the Conga mill assets as held for sale during the third quarter of 2021. The assets were remeasured to fair value less costs to sell. Refer to Note 7 of the Condensed Consolidated Financial Statements for further information.

(2)

Change in fair value of investments, included in Other income (loss), net, primarily represents unrealized gains and losses related to the Company's investments in current and non-current marketable and other equity securities. For further information regarding our investments, refer to Note 14 of the Condensed Consolidated Financial Statements.

(3)

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.

(4)

(Gain) loss on asset and investment sales, included in Gain on asset and investment sales, net, primarily represents a gain on the sale of TMAC in 2021 and gains on the sale of Kalgoorlie and Continental in 2020. For further information, refer to Note 9 of the Condensed Consolidated Financial Statements.

(5)

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

(6)

Settlement costs, included in Other expense, net, are primarily comprised of a voluntary contribution made to the Republic of Suriname and other certain costs associated with legal and other settlements for 2021 and costs related to the Cedros community agreement at Peñasquito in Mexico, a water related settlement at Yanacocha in Peru, mineral interest settlements at Ahafo and Akyem in Africa and other related costs for 2020.

(7)

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.

(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. For the three and nine months ended September 30, 2021, Adjusted EBITDA has not been adjusted for $23 and $63 of incremental COVID-19 costs incurred as a result of actions taken to protect against the impacts of the COVID-19 pandemic at our operational sites. Refer to Note 8 of the Condensed Consolidated Financial Statements for further information.

(9)

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

(10)

Pension settlements, included in Other income (loss), net, represent pension settlement charges in 2020.

(11)

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

(12)

Goldcorp transaction and integration costs, included in Other expense, net, primarily represent subsequent integration costs incurred during 2020 related to the Newmont Goldcorp transaction.

(13)

Adjusted EBITDA has not been adjusted for cash care and maintenance costs, included in Care and maintenance, which represent costs incurred associated with certain mine sites being temporarily placed into care and maintenance in response to the COVID-19 pandemic. Cash care and maintenance costs were $6 and $8 during the three and nine months ended September 30, 2021, respectively, relating to our Tanami mine site. Cash care and maintenance costs were $26 and $171 during the three and nine months ended September 30, 2020, respectively, relating to our Musselwhite, Éléonore, Peñasquito, Yanacocha, and Cerro Negro mine sites.

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

 

Three Months Ended
September 30,

 

Nine Months Ended
September 30,

 

2021

 

2020

 

2021

 

2020

 

 

 

 

 

 

 

 

Equity income (loss) of affiliates

$

39

 

$

53

 

 

$

138

 

 

$

119

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

4

 

(1

)

 

(1

)

 

16

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

43

 

52

 

 

137

 

 

135

Reconciliation of Pueblo Viejo on attributable basis:

 

 

 

 

 

 

 

Income and mining tax expense (benefit)

37

 

45

 

 

117

 

 

111

Depreciation and amortization

28

 

18

 

 

82

 

 

52

Pueblo Viejo EBITDA

$

108

 

$

115

 

 

$

336

 

 

$

298

(1)

Refer to Note 12 of the Condensed Consolidated Financial Statements.

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

 

Three Months Ended
September 30,

 

Nine Months Ended
September 30,

 

2021

 

2020

 

2021

 

2020

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

$

162

 

$

223

 

$

499

 

$

486

Depreciation and amortization (1)

131

 

151

 

386

 

429

NGM EBITDA

$

293

 

$

374

 

$

885

 

$

915

(1)

See Note 3 to the Condensed Consolidated Financial Statements.

Free Cash Flow

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

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

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

 

Three Months Ended
September 30,

 

Nine Months Ended
September 30,

 

2021

 

2020

 

2021

 

2020

Net cash provided by (used in) operating activities

$

1,144

 

 

$

1,596

 

 

$

2,980

 

 

$

3,196

 

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

(11

)

 

1

 

 

(13

)

 

8

 

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

1,133

 

 

1,597

 

 

2,967

 

 

3,204

 

Less: Additions to property, plant and mine development

(398

)

 

(296

)

 

(1,212

)

 

(904

)

Free Cash Flow

$

735

 

 

$

1,301

 

 

$

1,755

 

 

$

2,300

 

 

 

 

 

 

 

 

 

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

$

(390

)

 

$

(337

)

 

$

(1,517

)

 

$

502

 

Net cash provided by (used in) financing activities

$

(697

)

 

$

(242

)

 

$

(2,363

)

 

$

(1,119

)

(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 September 30, 2021

 

Nine Months Ended September 30, 2021

 

Consolidated

 

Attributable to
noncontrolling
interests (1)

 

Attributable to
Newmont
Stockholders

 

Consolidated

 

Attributable to
noncontrolling
interests (1)

 

Attributable to
Newmont
Stockholders

Net cash provided by (used in) operating activities

$

1,144

 

 

$

(39

)

 

$

1,105

 

 

$

2,980

 

 

$

(92

)

 

$

2,888

 

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

(11

)

 

 

 

(11

)

 

(13

)

 

 

 

(13

)

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

1,133

 

 

(39

)

 

1,094

 

 

2,967

 

 

(92

)

 

2,875

 

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

(398

)

 

19

 

 

(379

)

 

(1,212

)

 

50

 

 

(1,162

)

Free Cash Flow

$

735

 

 

$

(20

)

 

$

715

 

 

$

1,755

 

 

$

(42

)

 

$

1,713

 

 

 

 

 

 

 

 

 

 

 

 

 

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

$

(390

)

 

 

 

 

 

$

(1,517

)

 

 

 

 

Net cash provided by (used in) financing activities

$

(697

)

 

 

 

 

 

$

(2,363

)

 

 

 

 

(1)

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

(2)

For the three months ended September 30, 2021 Yanacocha and Merian had total consolidated Additions to property, plant and mine development of $35 and $9, respectively, on a cash basis. For the nine months ended September 30, 2021, Yanacocha and Merian had total consolidated Additions to property, plant and mine development of $88 and $31, respectively, on a cash basis.

(3)

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

 

Three Months Ended September 30, 2020

 

Nine Months Ended September 30, 2020

 

Consolidated

 

Attributable to
noncontrolling
interests (1)

 

Attributable to
Newmont
Stockholders

 

Consolidated

 

Attributable to
noncontrolling
interests (1)

 

Attributable to
Newmont
Stockholders

Net cash provided by (used in) operating activities

$

1,596

 

 

$

(50

)

 

$

1,546

 

 

$

3,196

 

 

$

(132

)

 

$

3,064

 

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

1

 

 

 

 

1

 

 

8

 

 

 

 

8

 

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

1,597

 

 

(50

)

 

1,547

 

 

3,204

 

 

(132

)

 

3,072

 

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

(296

)

 

12

 

 

(284

)

 

(904

)

 

37

 

 

(867

)

Free Cash Flow

$

1,301

 

 

$

(38

)

 

$

1,263

 

 

$

2,300

 

 

$

(95

)

 

$

2,205

 

 

 

 

 

 

 

 

 

 

 

 

 

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

$

(337

)

 

 

 

 

 

$

502

 

 

 

 

 

Net cash provided by (used in) financing activities

$

(242

)

 

 

 

 

 

$

(1,119

)

 

 

 

 

(1)

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

(2)

For the three months ended September 30, 2020 Yanacocha and Merian had total consolidated Additions to property, plant and mine development of $23 and $8, respectively, on a cash basis. For the nine months ended September 30, 2020, Yanacocha and Merian had total consolidated Additions to property, plant and mine development of $66 and $26, respectively, on a cash basis.

(3)

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

Costs applicable to sales per ounce/gold equivalent ounce

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

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

Costs applicable to sales per ounce

 

Three Months Ended
September 30,

 

Nine Months Ended
September 30,

 

2021

 

2020

 

2021

 

2020

Costs applicable to sales (1)(2)

$

1,175

 

$

1,130

 

$

3,331

 

$

3,210

Gold sold (thousand ounces)

1,416

 

1,495

 

4,277

 

4,210

Costs applicable to sales per ounce (3)

$

830

 

$

756

 

$

779

 

$

762

(1)

Includes by-product credits of $27 and $154 during the three and nine months ended September 30, 2021, respectively, and $34 and $78 during the three and nine months ended September 30, 2020, respectively.

(2)

Excludes Depreciation and amortization and Reclamation and remediation.

(3)

Per ounce measures may not recalculate due to rounding.

Costs applicable to sales per gold equivalent ounce

 

Three Months Ended
September 30,

 

Nine Months Ended
September 30,

 

2021

 

2020

 

2021

 

2020

Costs applicable to sales (1)(2)

$

192

 

$

139

 

$

564

 

$

449

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

301

 

248

 

930

 

780

Costs applicable to sales per ounce (4)

$

638

 

$

556

 

$

606

 

$

575

(1)

Includes by-product credits of $2 and $5 during the three and nine months ended September 30, 2021, respectively, and $1 and $2 during the three and nine months ended September 30, 2020, respectively.

(2)

Excludes Depreciation and amortization and Reclamation and remediation.

(3)

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

(4)

Per ounce measures may not recalculate due to rounding.

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

 

Three Months Ended
September 30,

Nine Months Ended
September 30,

 

2021

 

2020

 

2021

 

2020

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

$

232

 

$

258

 

$

674

 

$

761

Gold sold (thousand ounces), NGM

303

 

340

 

893

 

997

Costs applicable to sales per ounce, NGM (3)

$

768

 

$

761

 

$

755

 

$

764

(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

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

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

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

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

Costs applicable to sales. Includes all direct and indirect costs related to current production incurred to execute the current mine plan. We exclude certain exceptional or unusual amounts from Costs applicable to sales (“CAS”), such as significant revisions to recovery amounts. CAS includes by-product credits from certain metals obtained during the process of extracting and processing the primary ore-body. CAS is accounted for on an accrual basis and excludes Depreciation and amortization and Reclamation and remediation, which is consistent with our presentation of CAS on the Condensed Consolidated Statements of Operations. In determining AISC, only the CAS associated with producing and selling an ounce of gold is included in the measure. Therefore, the amount of gold CAS included in AISC is derived from the CAS presented in the Company’s Condensed Consolidated Statements of Operations less the amount of CAS attributable to the production of other metals at our Peñasquito and Boddington mines. The other metals CAS at those mine sites is disclosed in Note 3 of the Condensed Consolidated Financial Statements. The allocation of CAS between gold and other metals at the Peñasquito and Boddington mines is based upon the relative sales value of gold and other metals produced during the period.

Reclamation costs. Includes accretion expense related to reclamation liabilities and the amortization of the related Asset Retirement Cost (“ARC”) for the Company’s operating properties. Accretion related to the reclamation liabilities and the amortization of the ARC assets for reclamation does not reflect annual cash outflows but are calculated in accordance with GAAP. The accretion and amortization reflect the periodic costs of reclamation associated with current production and are therefore included in the measure. The allocation of these costs to gold and other metals is determined using the same allocation used in the allocation of CAS between gold and other metals at the Peñasquito and Boddington mines.

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

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

Care and maintenance and Other expense, net. Care and maintenance includes direct operating costs incurred at the mine sites during the period that these sites were temporarily placed into care and maintenance in response to the COVID-19 pandemic. For Other expense, net we exclude certain exceptional or unusual expenses, such as restructuring, as these are not indicative to sustaining our current operations. Furthermore, this adjustment to Other expense, net is also consistent with the nature of the adjustments made to Net income (loss) attributable to Newmont stockholders as disclosed in the Company’s non-GAAP financial measure Adjusted net income (loss). The allocation of these costs to gold and other metals is determined using the same allocation used in the allocation of CAS between gold and other metals at the Peñasquito and Boddington mines. We also allocate these costs incurred at the Other North America, Other Australia and Corporate and Other locations using the proportion of CAS between gold and other metals.

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

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

Three Months Ended
September 30, 2021

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

 

Reclamation

Costs (4)

 

Advanced

Projects,

Research and

Development

and

Exploration(5)

 

General

and

Administrative

 

Care and Maintenance and Other Expense, Net(6)(7)(8)

 

Treatment and Refining Costs

 

Sustaining Capital and Lease Related Costs(9)(10)

 

All-In Sustaining Costs

 

Ounces (000) Sold

 

All-In Sustaining Costs Per oz.(11)

Gold

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CC&V

$

47

 

 

$

2

 

 

$

2

 

 

$

 

 

$

 

 

$

 

 

$

19

 

 

$

70

 

 

49

 

 

$

1,421

 

Musselwhite

38

 

 

 

 

1

 

 

 

 

 

 

 

 

10

 

 

49

 

 

35

 

 

1,379

 

Porcupine

69

 

 

2

 

 

2

 

 

 

 

 

 

 

 

9

 

 

82

 

 

72

 

 

1,139

 

Éléonore

60

 

 

1

 

 

 

 

 

 

1

 

 

 

 

10

 

 

72

 

 

58

 

 

1,243

 

Peñasquito

94

 

 

1

 

 

 

 

 

 

1

 

 

9

 

 

16

 

 

121

 

 

170

 

 

706

 

Other North America

 

 

 

 

 

 

1

 

 

 

 

 

 

 

 

1

 

 

 

 

 

North America

308

 

 

6

 

 

5

 

 

1

 

 

2

 

 

9

 

 

64

 

 

395

 

 

384

 

 

1,026

 

 

 

 

 

 

 

 

 

 

 

Yanacocha

92

 

 

20

 

 

1

 

 

 

 

9

 

 

1

 

 

4

 

 

127

 

 

67

 

 

1,908

 

Merian

80

 

 

2

 

 

2

 

 

 

 

1

 

 

 

 

9

 

 

94

 

 

106

 

 

884

 

Cerro Negro

54

 

 

1

 

 

1

 

 

 

 

6

 

 

 

 

16

 

 

78

 

 

63

 

 

1,231

 

Other South America

 

 

 

 

 

 

3

 

 

 

 

 

 

 

 

3

 

 

 

 

 

South America

226

 

 

23

 

 

4

 

 

3

 

 

16

 

 

1

 

 

29

 

 

302

 

 

236

 

 

1,276

 

 

 

 

 

 

 

 

 

 

 

Boddington

151

 

 

2

 

 

2

 

 

 

 

 

 

4

 

 

13

 

 

172

 

 

167

 

 

1,030

 

Tanami

69

 

 

 

 

1

 

 

 

 

12

 

 

 

 

29

 

 

111

 

 

111

 

 

986

 

Other Australia

 

 

 

 

 

 

2

 

 

 

 

 

 

1

 

 

3

 

 

 

 

 

Australia

220

 

 

2

 

 

3

 

 

2

 

 

12

 

 

4

 

 

43

 

 

286

 

 

278

 

 

1,025

 

 

 

 

 

 

 

 

 

 

 

Ahafo

112

 

 

2

 

 

1

 

 

 

 

2

 

 

 

 

19

 

 

136

 

 

123

 

 

1,100

 

Akyem

77

 

 

6

 

 

1

 

 

 

 

 

 

 

 

15

 

 

99

 

 

92

 

 

1,104

 

Other Africa

 

 

 

 

 

 

2

 

 

 

 

 

 

 

 

2

 

 

 

 

 

Africa

189

 

 

8

 

 

2

 

 

2

 

 

2

 

 

 

 

34

 

 

237

 

 

215

 

 

1,114

 

 

 

 

 

 

 

 

 

 

 

Nevada Gold Mines

232

 

 

2

 

 

4

 

 

2

 

 

1

 

 

2

 

 

43

 

 

286

 

 

303

 

 

945

 

Nevada

232

 

 

2

 

 

4

 

 

2

 

 

1

 

 

2

 

 

43

 

 

286

 

 

303

 

 

945

 

 

 

 

 

 

 

 

 

 

 

Corporate and Other

 

 

 

 

31

 

 

43

 

 

 

 

 

 

6

 

 

80

 

 

 

 

 

Total Gold

$

1,175

 

 

$

41

 

 

$

49

 

 

$

53

 

 

$

33

 

 

$

16

 

 

$

219

 

 

$

1,586

 

 

1,416

 

 

$

1,120

 

 

 

 

 

 

 

 

 

 

 

Gold equivalent ounces - other metals (12)

 

 

 

 

 

 

 

 

 

 

Peñasquito

$

155

 

 

$

2

 

 

$

 

 

$

 

 

$

2

 

 

$

27

 

 

$

26

 

 

$

212

 

 

261

 

 

$

819

 

Other North America

 

 

 

 

 

 

1

 

 

1

 

 

 

 

 

 

2

 

 

 

 

 

North America

155

 

 

2

 

 

 

 

1

 

 

3

 

 

27

 

 

26

 

 

214

 

 

261

 

 

822

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Boddington

37

 

 

 

 

 

 

 

 

 

 

2

 

 

1

 

 

40

 

 

40

 

 

1,013

 

Other Australia

 

 

 

 

 

 

 

 

 

 

 

 

1

 

 

1

 

 

 

 

 

Australia

37

 

 

 

 

 

 

 

 

 

 

2

 

 

2

 

 

41

 

 

40

 

 

1,025

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate and Other

 

 

 

 

4

 

 

7

 

 

 

 

 

 

1

 

 

12

 

 

 

 

 

Total Gold Equivalent Ounces

$

192

 

 

$

2

 

 

$

4

 

 

$

8

 

 

$

3

 

 

$

29

 

 

$

29

 

 

$

267

 

 

301

 

 

$

887

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated

$

1,367

 

 

$

43

 

 

$

53

 

 

$

61

 

 

$

36

 

 

$

45

 

 

$

248

 

 

$

1,853

 

 

 

 

 

(1)

Excludes Depreciation and amortization and Reclamation and remediation.

(2)

Includes by-product credits of $29 and excludes co-product revenues of $379.

(3)

Includes stockpile and leach pad inventory adjustments of $18 at Yanacocha.

(4)

Reclamation costs include operating accretion and amortization of asset retirement costs of $20 and $23, 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 $13 and $84, respectively.

(5)

Advanced projects, research and development and exploration excludes development expenditures of $3 at CC&V, $1 at Éléonore, $2 at Peñasquito, $1 at Other North America, $4 at Yanacocha, $2 at Merian, $1 at Cerro Negro, $9 at Other South America, $6 at Tanami, $4 at Other Australia, $5 at Ahafo, $2 at Akyem, $4 at NGM and $3 at Corporate and Other, totaling $47 related to developing new operations or major projects at existing operations where these projects will materially benefit the operation.

(6)

Care and maintenance includes $6 at Tanami of cash care and maintenance costs associated with the site temporarily being placed into care and maintenance or operating at reduced levels in response to the COVID-19 pandemic, during the period ended September 30, 2021 that we would have continued to incur if the site were not temporarily placed into care and maintenance.

(7)

Other expense, net includes incremental COVID-19 costs incurred as a result of actions taken to protect against the impacts of the COVID-19 pandemic at our operational sites of $6 for North America, $11 for South America, $5 for Australia and $1 for Africa, totaling $23.

(8)

Other expense, net is adjusted for impairment of long-lived and other assets of $6, and distributions from the Newmont Global Community Support Fund of $1.

(9)

Includes sustaining capital expenditures of $76 for North America, $29 for South America, $42 for Australia, $33 for Africa, $43 for Nevada, and $7 for Corporate and Other, totaling $230 and excludes development capital expenditures, capitalized interest and the change in accrued capital totaling $168. The following are major development projects: Pamour, Yanacocha Sulfides, Quecher Main, Cerro Negro expansion projects, Tanami Expansion 2, Power Generation Civil Upgrade, Subika Mining Method Change, Ahafo North, Goldrush Complex and Turquoise Ridge 3rd shaft.

(10)

Includes finance lease payments for sustaining projects of $18.

(11)

Per ounce measures may not recalculate due to rounding.

(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 ($1,200/oz.), Copper ($2.75/lb.), Silver ($22.00/oz.), Lead ($0.90/lb.) and Zinc ($1.05/lb.) pricing for 2021.

Three Months Ended
September 30, 2020

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

 

Reclamation Costs(4)

 

Advanced Projects, Research and Development and Exploration(5)

 

General and Administrative

 

Care and Maintenance and Other Expense, Net(6)(7)

 

Treatment and Refining Costs

 

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

 

All-In Sustaining Costs

 

Ounces (000) Sold

 

All-In Sustaining Costs Per oz.(10)

Gold

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CC&V

$

61

 

 

$

1

 

 

$

3

 

 

$

 

 

$

 

 

$

 

 

$

10

 

 

$

75

 

 

71

 

 

$

1,081

 

Musselwhite

46

 

 

1

 

 

2

 

 

 

 

2

 

 

 

 

7

 

 

58

 

 

47

 

 

1,260

 

Porcupine

61

 

 

 

 

3

 

 

 

 

 

 

 

 

10

 

 

74

 

 

81

 

 

911

 

Éléonore

53

 

 

1

 

 

 

 

 

 

 

 

 

 

10

 

 

64

 

 

57

 

 

1,118

 

Peñasquito

74

 

 

2

 

 

 

 

 

 

 

 

18

 

 

13

 

 

107

 

 

130

 

 

835

 

Other North America

 

 

 

 

4

 

 

1

 

 

2

 

 

 

 

 

 

7

 

 

 

 

 

North America

295

 

 

5

 

 

12

 

 

1

 

 

4

 

 

18

 

 

50

 

 

385

 

 

386

 

 

1,003

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Yanacocha

81

 

 

13

 

 

2

 

 

1

 

 

4

 

 

 

 

6

 

 

107

 

 

80

 

 

1,325

 

Merian

86

 

 

1

 

 

 

 

 

 

 

 

 

 

10

 

 

97

 

 

106

 

 

917

 

Cerro Negro

43

 

 

1

 

 

 

 

 

 

16

 

 

 

 

8

 

 

68

 

 

51

 

 

1,346

 

Other South America

 

 

 

 

1

 

 

2

 

 

1

 

 

 

 

 

 

4

 

 

 

 

 

South America

210

 

 

15

 

 

3

 

 

3

 

 

21

 

 

 

 

24

 

 

276

 

 

237

 

 

1,162

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Boddington

148

 

 

3

 

 

1

 

 

 

 

 

 

3

 

 

17

 

 

172

 

 

175

 

 

985

 

Tanami

62

 

 

 

 

3

 

 

 

 

 

 

 

 

29

 

 

94

 

 

130

 

 

723

 

Other Australia

 

 

 

 

 

 

3

 

 

1

 

 

 

 

1

 

5

 

 

 

 

Australia

210

 

 

3

 

 

4

 

 

3

 

 

1

 

 

3

 

 

47

 

 

271

 

 

305

 

 

889

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ahafo

99

 

 

3

 

 

1

 

 

1

 

 

 

 

 

 

20

 

 

124

 

 

136

 

 

912

 

Akyem

58

 

 

5

 

 

 

 

 

 

 

 

 

 

7

 

 

70

 

 

91

 

 

775

 

Other Africa

 

 

 

 

 

 

2

 

 

 

 

 

 

 

 

2

 

 

 

 

 

Africa

157

 

 

8

 

 

1

 

 

3

 

 

 

 

 

 

27

 

 

196

 

 

227

 

 

865

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nevada Gold Mines

258

 

 

4

 

 

6

 

 

3

 

 

 

 

2

 

 

34

 

 

307

 

 

340

 

 

904

 

Nevada

258

 

 

4