Newmont Announces Solid Second Quarter Results
Newmont Delivers Solid Second Quarter Results; Clear Strategy to Deliver Value From Our World-Class Portfolio of Long-Life, Responsibly Managed Assets
DENVER–(BUSINESS WIRE)–Newmont Corporation (NYSE: NEM, TSX: NGT) (Newmont or the Company) today announced second quarter 2021 results.
SECOND QUARTER 2021 HIGHLIGHTS
- Produced 1.4 million attributable ounces of gold and 303 thousand attributable gold equivalent ounces from co-products
- Reported gold CAS* of $755 per ounce and AISC* of $1,035 per ounce
- Full-year results continue to be back-half weighted, in line with guidance ranges**
- Generated $993 million of cash from continuing operations and $578 million of Free Cash Flow (97 percent attributable to Newmont)*
- Declared second quarter dividend of $0.55 per share, consistent with the previous quarter***
- Completed $149 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
- Reduced $550 million of debt outstanding with available cash in April 2021
- Completed acquisition of GT Gold in May 2021, increasing our interest in the prospective Golden Triangle
- Approved full funding for Ahafo North in July 2021, meeting Newmont’s internal hurdle rate at the base assumption of $1,200 per ounce gold price; expecting to deliver an internal rate of return of over 30 percent at current prices
- Published 2020 Annual Sustainability Report, a transparent review of our Environmental, Social and Governance performance
- Launched first Climate Strategy Report, including pathways to achieve our climate targets
“Throughout our history Newmont has taken an industry-leading approach to environmental, social and governance practices. We published our sustainability and climate-focused reports in the second quarter, demonstrating our commitment to responsible mining and doing our part in addressing climate change,” said Tom Palmer, President and Chief Executive Officer. “Capitalizing on the strength of our assets and integrated operating model, Newmont delivered a solid second quarter performance with $1.6 billion in adjusted EBITDA and $578 million in free cash flow. Our performance and disciplined approach to capital allocation allowed Newmont to declare a second quarter dividend of $0.55 per share, whilst we continue to reinvest in our business through our most profitable projects. As we move into our next 100 years of mining, we remain focused on delivering value to all of our stakeholders from our world-class portfolio of long-life, responsibly managed assets located in top-tier jurisdictions.”
– Tom Palmer, 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 includes $15 million settled after June 30, 2021. |
| SECOND QUARTER 2021 FINANCIAL AND PRODUCTION SUMMARY | ||||||
|
|
Q2’21 |
Q1’21 |
Q2’20 |
|||
|
Attributable gold production (million ounces) |
1.45 |
1.46 |
1.26 |
|||
|
Gold costs applicable to sales (CAS) ($ per ounce) |
$ |
755 |
$ |
752 |
$ |
748 |
|
Gold all-in sustaining costs (AISC) ($ per ounce) |
$ |
1,035 |
$ |
1,039 |
$ |
1,097 |
|
GAAP Net income (US $ millions) |
$ |
640 |
$ |
538 |
$ |
412 |
|
Adjusted net income (US $ millions) |
$ |
670 |
$ |
594 |
$ |
261 |
|
Adjusted EBITDA (US $ millions) |
$ |
1,591 |
$ |
1,457 |
$ |
984 |
|
Cash flow from continuing operations (US $ millions) |
$ |
993 |
$ |
841 |
$ |
668 |
|
Capital Expenditures (US $ millions) |
$ |
415 |
$ |
399 |
$ |
280 |
|
Free cash flow (US $ millions) |
$ |
578 |
$ |
442 |
$ |
388 |
Attributable gold production1 increased 15 percent to 1,449 thousand ounces from the prior year quarter primarily due to higher production from sites that were placed into care and maintenance or experienced reduced operations in response to Covid during 2020, and higher ore grade milled and higher mill throughput at Boddington. These increases were partially offset by lower mill availability and lower tons and grades mined at Nevada Gold Mines, the ramp down of the mill at Yanacocha during the first quarter of 2021 and a build-up of in-circuit inventory at Tanami as the mine was placed under care and maintenance in late-June as a result of Covid restrictions.
Gold CAS increased 16 percent to $1,091 million from the prior year quarter primarily due to higher gold ounces sold. Gold CAS per ounce2 remained flat compared to the prior year quarter at $755 per ounce as higher maintenance costs and unfavorable Australian dollar foreign currency exchange rate were largely offset by higher ounces sold and higher by-product credits.
Gold AISC3 improved 6 percent to $1,035 per ounce from the prior year quarter primarily due to care and maintenance costs in the prior year, partially offset by higher sustaining capital spend.
Attributable gold equivalent ounce (GEO) production from other metals increased 120 percent to 303 thousand ounces primarily due to higher production at Peñasquito as the site was placed into care and maintenance in the prior year and higher ore grade milled, mill throughput and recoveries at Boddington.
CAS from other metals totaled $190 million for the quarter. CAS per GEO2 increased 13 percent to $629 per ounce from the prior year quarter primarily due to higher maintenance costs at Peñasquito, unfavorable foreign currency impacts from the strengthening of the Australian dollar, higher allocation of costs to other metals and higher copper-price driven royalties, partially offset by higher other metal sales. AISC per GEO3 improved 9 percent to $886 per ounce primarily due to lower treatment and refining costs and higher care and maintenance costs in the prior year, partially offset by higher CAS per GEO.
Net income from continuing operations attributable to Newmont stockholders was $640 million or $0.80 per diluted share, an increase of $228 million from the prior year quarter primarily due to higher sales volumes and higher average realized prices in the current year. These increases were partially offset by higher income tax expense in the current year.
Adjusted net income4 was $670 million or $0.83 per diluted share, compared to $261 million or $0.32 per diluted share in the prior year quarter. Primary adjustments to second quarter net income include changes in the fair value of investments, reclamation and remediation charges, asset impairment and valuation allowance and other tax adjustments.
Adjusted EBITDA5 improved 62 percent to $1,591 million for the quarter, compared to $984 million for the prior year quarter.
Revenue increased 30 percent from the prior year quarter to $3,065 million primarily due to higher average realized metal prices and higher sales volumes.
Average realized price6 for gold was $1,823, an increase of $99 per ounce over the prior year quarter. Average realized gold price includes $1,819 per ounce of gross price received, the favorable impact of $9 per ounce mark-to-market on provisionally-priced sales and reductions of $5 per ounce for treatment and refining charges.
Capital expenditures7 increased 48 percent from the prior year quarter to $415 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 and projects associated with the Company’s ownership interest in Nevada Gold Mines.
Consolidated operating cash flow from continuing operations increased 49 percent from the prior year quarter to $993 million primarily due to higher average realized metal prices, partially offset by an increase in tax payments and an increase in receivables related to timing. Free Cash Flow8 also increased to $578 million primarily due to higher operating cash flow, partially offset by 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 284 thousand ounces with CAS of $753 per ounce and AISC of $985 per ounce for the second quarter. EBITDA10 for NGM was $298 million.
Pueblo Viejo (PV) attributable gold production was 78 thousand ounces for the quarter. Pueblo Viejo EBITDA10 was $111 million and cash distributions received for the Company’s equity method investment totaled $23 million in the second quarter.
COVID-19 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 $20 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 $19 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-19 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 December 2021. Additional sustaining and 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 (2026-2030). An investment decision is expected in December 2021 with a three year development period and estimated capital costs of approximately $2 billion. 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 second quarter 2021 includes 78 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. |
OUTLOOK
Newmont’s outlook reflects increasing gold production and ongoing investment in its operating assets and most promising growth prospects. The Company has included Yanacocha Sulfides in its outlook as the development project is expected to reach execution stage in December 2021. Additional development projects that have not reached execution stage represent upside to guidance. All production, cost and capital figures assume a $1,200/oz gold price.
Newmont’s 2021 and longer-term outlook assumes operations continue without major Covid-related interruptions. If at any point the Company determines that continuing operations poses an increased risk to our workforce or host communities, it will reduce operational activities up to, and including, care and maintenance and management of critical environmental systems. Please see cautionary statement in the end notes for additional information.
Please see cautionary statement in the end notes for additional information. Investors are reminded that outlook is a range of plus or minus 5 percent of the midpoints noted below. For further discussion, investors are encouraged to attend Newmont’s Second Quarter 2021 Earnings Conference Call.
|
Five Year Cost and Production Outlook (+/- 5%) |
|||||
|
Guidance metric |
2021E |
2022E |
2023E |
2024E |
2025E |
|
Gold Production* (Moz) |
6.5 |
6.2 – 6.7 |
6.2 – 6.7 |
6.5 – 7.0 |
6.5 – 7.0 |
|
Other Metal Production** (Mozs) |
1.3 |
1.2 – 1.4 |
1.4 – 1.6 |
1.4 – 1.6 |
1.4 – 1.6 |
|
Total GEO Production (Mozs) |
7.8 |
7.5 – 8.0 |
7.7 – 8.2 |
8.0 – 8.5 |
8.0 – 8.5 |
|
CAS*** ($/oz) |
$750 |
$650 – $750 |
$625 – $725 |
$600 – $700 |
$600 – $700 |
|
All-in Sustaining Costs*** ($/oz) |
$970 |
$850 – $950 |
$825 – $925 |
$800 – $900 |
$800 – $900 |
|
Sustaining Capital* ($M) |
$950 |
$900 – $1,100 |
$900 – $1,100 |
$900 – $1,100 |
$900 – $1,100 |
|
Development Capital* ($M) |
$850 |
$1,000 – $1,200 |
$900 – $1,100 |
$200 – $400 |
$100 – $300 |
|
Total Capital* ($M) |
$1,800 |
$2,000 – $2,200 |
$1,900 – $2,100 |
$1,200 – $1,400 |
$1,100 – $1,300 |
|
*Attributable basis; **Attributable co-product gold equivalent ounces; includes copper, silver, lead and zinc; ***Consolidated basis for gold |
|
2021 Consolidated Expense Outlook ($M) (+/-5%) |
|
|
General & Administrative |
260 |
|
Interest Expense |
275 |
|
Depreciation and Amortization |
2,500 |
|
Exploration & Advanced Projects |
390 |
|
Adjusted Tax Rate a,b |
34% – 38% |
|
Federal Tax Rate b |
27% – 30% |
|
Mining Tax Rate b |
6% – 9% |
|
a |
The adjusted tax rate excludes certain items such as tax valuation allowance adjustments. |
|
b |
Assuming average prices of $1,500 per ounce for gold, $22 per ounce for silver, $2.75 per pound for copper, $0.90 per pound for lead, and $1.05 per pound for zinc and achievement of current production and sales volumes and cost estimates, we estimate our consolidated adjusted effective tax rate related to continuing operations for 2021 will be between 34%-38%. |
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|||||||||||||||||
|
Operating Results |
2021 |
2020 |
% Change |
|
2021 |
2020 |
% Change |
||||||||||||
|
Attributable Sales (koz) |
|
|
|
|
|
|
|
||||||||||||
|
Attributable gold ounces sold (1) |
1,383 |
|
1,198 |
|
15 |
|
% |
|
2,744 |
|
2,567 |
|
7 |
|
% |
||||
|
Attributable gold equivalent ounces sold |
302 |
|
213 |
|
42 |
|
% |
|
629 |
|
532 |
|
18 |
|
% |
||||
|
|
|
|
|
|
|
|
|
||||||||||||
|
Average Realized Price ($/oz, $/lb) |
|
|
|
|
|
|
|
||||||||||||
|
Average realized gold price |
$ |
1,823 |
|
$ |
1,724 |
|
6 |
|
% |
|
$ |
1,788 |
|
$ |
1,652 |
|
8 |
|
% |
|
Average realized copper price |
$ |
4.37 |
|
$ |
2.91 |
|
50 |
|
% |
|
$ |
4.30 |
|
$ |
2.21 |
|
95 |
|
% |
|
Average realized silver price |
$ |
23.00 |
|
$ |
14.70 |
|
56 |
|
% |
|
$ |
21.27 |
|
$ |
14.35 |
|
48 |
|
% |
|
Average realized lead price |
$ |
1.02 |
|
$ |
0.75 |
|
36 |
|
% |
|
$ |
0.95 |
|
$ |
0.68 |
|
40 |
|
% |
|
Average realized zinc price |
$ |
1.34 |
|
$ |
0.70 |
|
91 |
|
% |
|
$ |
1.19 |
|
$ |
0.65 |
|
83 |
|
% |
|
|
|
|
|
|
|
|
|
||||||||||||
|
Attributable Production (koz) |
|
|
|
|
|
|
|
||||||||||||
|
North America |
397 |
|
232 |
|
71 |
|
% |
|
810 |
|
608 |
|
33 |
|
% |
||||
|
South America |
189 |
|
136 |
|
39 |
|
% |
|
363 |
|
371 |
|
(2 |
) |
% |
||||
|
Australia |
299 |
|
294 |
|
2 |
|
% |
|
568 |
|
552 |
|
3 |
|
% |
||||
|
Africa |
202 |
|
193 |
|
5 |
|
% |
|
407 |
|
379 |
|
7 |
|
% |
||||
|
Nevada |
284 |
|
326 |
|
(13 |
) |
% |
|
587 |
|
655 |
|
(10 |
) |
% |
||||
|
Total Gold (excluding equity method investments) |
1,371 |
|
1,181 |
|
16 |
|
% |
|
2,735 |
|
2,565 |
|
7 |
|
% |
||||
|
Pueblo Viejo (40%) (2) |
78 |
|
74 |
|
5 |
|
% |
|
169 |
|
169 |
|
— |
|
% |
||||
|
Total Gold |
1,449 |
|
1,255 |
|
15 |
|
% |
|
2,904 |
|
2,734 |
|
6 |
|
% |
||||
|
|
|
|
|
|
|
|
|
||||||||||||
|
North America |
260 |
|
108 |
|
141 |
|
% |
|
545 |
|
418 |
|
30 |
|
% |
||||
|
Australia |
43 |
|
30 |
|
43 |
|
% |
|
75 |
|
59 |
|
27 |
|
% |
||||
|
Total Gold Equivalent Ounces |
303 |
|
138 |
|
120 |
|
% |
|
620 |
|
477 |
|
30 |
|
% |
||||
|
|
|
|
|
|
|
|
|
||||||||||||
|
CAS Consolidated ($/oz, $/GEO) |
|
|
|
|
|
|
|
||||||||||||
|
North America |
$ |
769 |
|
$ |
735 |
|
5 |
|
% |
|
$ |
752 |
|
$ |
811 |
|
(7 |
) |
% |
|
South America |
$ |
721 |
|
$ |
781 |
|
(8 |
) |
% |
|
$ |
753 |
|
$ |
796 |
|
(5 |
) |
% |
|
Australia |
$ |
764 |
|
$ |
719 |
|
6 |
|
% |
|
$ |
757 |
|
$ |
724 |
|
5 |
|
% |
|
Africa |
$ |
763 |
|
$ |
696 |
|
10 |
|
% |
|
$ |
760 |
|
$ |
715 |
|
6 |
|
% |
|
Nevada |
$ |
753 |
|
$ |
797 |
|
(6 |
) |
% |
|
$ |
749 |
|
$ |
765 |
|
(2 |
) |
% |
|
Total Gold |
$ |
755 |
|
$ |
748 |
|
1 |
|
% |
|
$ |
754 |
|
$ |
766 |
|
(2 |
) |
% |
|
Total Gold (by-product) |
$ |
586 |
|
$ |
684 |
|
(14 |
) |
% |
|
$ |
595 |
|
$ |
711 |
|
(16 |
) |
% |
|
|
|
|
|
|
|
|
|
||||||||||||
|
North America |
$ |
586 |
|
$ |
505 |
|
16 |
|
% |
|
$ |
550 |
|
$ |
551 |
|
— |
|
% |
|
Australia |
$ |
898 |
|
$ |
874 |
|
3 |
|
% |
|
$ |
913 |
|
$ |
843 |
|
8 |
|
% |
|
Total Gold Equivalent Ounces |
$ |
629 |
|
$ |
555 |
|
13 |
|
% |
|
$ |
590 |
|
$ |
583 |
|
1 |
|
% |
|
|
|
|
|
|
|
|
|
||||||||||||
|
AISC Consolidated ($/oz, $/GEO) |
|
|
|
|
|
|
|
||||||||||||
|
North America |
$ |
985 |
|
$ |
1,162 |
|
(15 |
) |
% |
|
$ |
971 |
|
$ |
1,105 |
|
(12 |
) |
% |
|
South America |
$ |
1,022 |
|
$ |
1,233 |
|
(17 |
) |
% |
|
$ |
1,041 |
|
$ |
1,087 |
|
(4 |
) |
% |
|
Australia |
$ |
997 |
|
$ |
907 |
|
10 |
|
% |
|
$ |
1,048 |
|
$ |
927 |
|
13 |
|
% |
|
Africa |
$ |
1,000 |
|
$ |
877 |
|
14 |
|
% |
|
$ |
974 |
|
$ |
902 |
|
8 |
|
% |
|
Nevada |
$ |
985 |
|
$ |
979 |
|
1 |
|
% |
|
$ |
924 |
|
$ |
953 |
|
(3 |
) |
% |
|
Total Gold |
$ |
1,035 |
|
$ |
1,097 |
|
(6 |
) |
% |
|
$ |
1,037 |
|
$ |
1,061 |
|
(2 |
) |
% |
|
Total Gold (by-product) |
$ |
918 |
|
$ |
1,104 |
|
(17 |
) |
% |
|
$ |
935 |
|
$ |
1,070 |
|
(13 |
) |
% |
|
|
|
|
|
|
|
|
|
||||||||||||
|
North America |
$ |
761 |
|
$ |
960 |
|
(21 |
) |
% |
|
$ |
762 |
|
$ |
888 |
|
(14 |
) |
% |
|
Australia |
$ |
1,113 |
|
$ |
1,068 |
|
4 |
|
% |
|
$ |
1,231 |
|
$ |
1,051 |
|
17 |
|
% |
|
Total Gold Equivalent Ounces |
$ |
886 |
|
$ |
974 |
|
(9 |
) |
% |
|
$ |
851 |
|
$ |
906 |
|
(6 |
) |
% |
|
(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 |
|||||||||||||||||||
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||||||||
|
|
2021 |
|
2020 |
|
2021 |
|
2020 |
||||||||||||
|
|
|
|
|
|
|
|
|
||||||||||||
|
Sales |
$ |
3,065 |
|
|
|
$ |
2,365 |
|
|
|
$ |
5,937 |
|
|
|
$ |
4,946 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Costs and expenses |
|
|
|
|
|
|
|
||||||||||||
|
Costs applicable to sales (1) |
1,281 |
|
|
|
1,058 |
|
|
|
2,528 |
|
|
|
2,390 |
|
|
||||
|
Depreciation and amortization |
561 |
|
|
|
528 |
|
|
|
1,114 |
|
|
|
1,093 |
|
|
||||
|
Reclamation and remediation |
57 |
|
|
|
40 |
|
|
|
103 |
|
|
|
78 |
|
|
||||
|
Exploration |
52 |
|
|
|
26 |
|
|
|
87 |
|
|
|
70 |
|
|
||||
|
Advanced projects, research and development |
37 |
|
|
|
26 |
|
|
|
68 |
|
|
|
53 |
|
|
||||
|
General and administrative |
64 |
|
|
|
72 |
|
|
|
129 |
|
|
|
137 |
|
|
||||
|
Care and maintenance |
2 |
|
|
|
125 |
|
|
|
2 |
|
|
|
145 |
|
|
||||
|
Other expense, net |
50 |
|
|
|
59 |
|
|
|
89 |
|
|
|
92 |
|
|
||||
|
|
2,104 |
|
|
|
1,934 |
|
|
|
4,120 |
|
|
|
4,058 |
|
|
||||
|
Other income (expense): |
|
|
|
|
|
|
|
||||||||||||
|
Gain on asset and investment sales, net |
— |
|
|
|
(1 |
) |
|
|
43 |
|
|
|
592 |
|
|
||||
|
Other income, net |
50 |
|
|
|
198 |
|
|
|
(32 |
) |
|
|
9 |
|
|
||||
|
Interest expense, net of capitalized interest |
(68 |
) |
|
|
(78 |
) |
|
|
(142 |
) |
|
|
(160 |
) |
|
||||
|
|
(18 |
) |
|
|
119 |
|
|
|
(131 |
) |
|
|
441 |
|
|
||||
|
Income (loss) before income and mining tax and other items |
943 |
|
|
|
550 |
|
|
|
1,686 |
|
|
|
1,329 |
|
|
||||
|
Income and mining tax benefit (expense) |
(341 |
) |
|
|
(164 |
) |
|
|
(576 |
) |
|
|
(141 |
) |
|
||||
|
Equity income (loss) of affiliates |
49 |
|
|
|
29 |
|
|
|
99 |
|
|
|
66 |
|
|
||||
|
Net income (loss) from continuing operations |
651 |
|
|
|
415 |
|
|
|
1,209 |
|
|
|
1,254 |
|
|
||||
|
Net income (loss) from discontinued operations |
10 |
|
|
|
(68 |
) |
|
|
31 |
|
|
|
(83 |
) |
|
||||
|
Net income (loss) |
661 |
|
|
|
347 |
|
|
|
1,240 |
|
|
|
1,171 |
|
|
||||
|
Net loss (income) attributable to noncontrolling interests |
(11 |
) |
|
|
(3 |
) |
|
|
(31 |
) |
|
|
(5 |
) |
|
||||
|
Net income (loss) attributable to Newmont stockholders |
$ |
650 |
|
|
|
$ |
344 |
|
|
|
$ |
1,209 |
|
|
|
$ |
1,166 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Net income (loss) attributable to Newmont stockholders: |
|
|
|
|
|
|
|
||||||||||||
|
Continuing operations |
$ |
640 |
|
|
|
$ |
412 |
|
|
|
$ |
1,178 |
|
|
|
$ |
1,249 |
|
|
|
Discontinued operations |
10 |
|
|
|
(68 |
) |
|
|
31 |
|
|
|
(83 |
) |
|
||||
|
|
$ |
650 |
|
|
|
$ |
344 |
|
|
|
$ |
1,209 |
|
|
|
$ |
1,166 |
|
|
|
Net income (loss) attributable to Newmont stockholders per common share |
|
|
|
|
|
|
|
||||||||||||
|
Basic: |
|
|
|
|
|
|
|
||||||||||||
|
Continuing operations |
$ |
0.80 |
|
|
|
$ |
0.51 |
|
|
|
$ |
1.47 |
|
|
|
$ |
1.55 |
|
|
|
Discontinued operations |
0.01 |
|
|
|
(0.08 |
) |
|
|
0.04 |
|
|
|
(0.10 |
) |
|
||||
|
|
$ |
0.81 |
|
|
|
$ |
0.43 |
|
|
|
$ |
1.51 |
|
|
|
$ |
1.45 |
|
|
|
Diluted: |
|
|
|
|
|
|
|
||||||||||||
|
Continuing operations |
$ |
0.80 |
|
|
|
$ |
0.51 |
|
|
|
$ |
1.47 |
|
|
|
$ |
1.55 |
|
|
|
Discontinued operations |
0.01 |
|
|
|
(0.08 |
) |
|
|
0.04 |
|
|
|
(0.10 |
) |
|
||||
|
|
$ |
0.81 |
|
|
|
$ |
0.43 |
|
|
|
$ |
1.51 |
|
|
|
$ |
1.45 |
|
|
|
(1) |
Excludes Depreciation and amortization and Reclamation and remediation. |
|
NEWMONT CORPORATION |
|||||||||||||||||||
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||||||||
|
|
2021 |
|
2020 |
|
2021 |
|
2020 |
||||||||||||
|
Operating activities: |
|
|
|
|
|
|
|
||||||||||||
|
Net income (loss) |
$ |
661 |
|
|
|
$ |
347 |
|
|
|
$ |
1,240 |
|
|
|
$ |
1,171 |
|
|
|
Adjustments: |
|
|
|
|
|
|
|
||||||||||||
|
Depreciation and amortization |
561 |
|
|
|
528 |
|
|
|
1,114 |
|
|
|
1,093 |
|
|
||||
|
Gain on asset and investment sales, net |
— |
|
|
|
1 |
|
|
|
(43 |
) |
|
|
(592 |
) |
|
||||
|
Net loss (income) from discontinued operations |
(10 |
) |
|
|
68 |
|
|
|
(31 |
) |
|
|
83 |
|
|
||||
|
Reclamation and remediation |
53 |
|
|
|
37 |
|
|
|
96 |
|
|
|
72 |
|
|
||||
|
Change in fair value of investments |
(26 |
) |
|
|
(227 |
) |
|
|
84 |
|
|
|
(134 |
) |
|
||||
|
Equity earnings in affiliates, net of distributions received |
(55 |
) |
|
|
3 |
|
|
|
(55 |
) |
|
|
(34 |
) |
|
||||
|
Stock-based compensation |
21 |
|
|
|
17 |
|
|
|
38 |
|
|
|
38 |
|
|
||||
|
Deferred income taxes |
39 |
|
|
|
(26 |
) |
|
|
14 |
|
|
|
(144 |
) |
|
||||
|
Impairment of investments |
— |
|
|
|
— |
|
|
|
— |
|
|
|
93 |
|
|
||||
|
Charges from debt extinguishment |
— |
|
|
|
3 |
|
|
|
— |
|
|
|
77 |
|
|
||||
|
Other non-cash adjustments |
15 |
|
|
|
62 |
|
|
|
(32 |
) |
|
|
2 |
|
|
||||
|
Net change in operating assets and liabilities |
(266 |
) |
|
|
(145 |
) |
|
|
(591 |
) |
|
|
(118 |
) |
|
||||
|
Net cash provided by (used in) operating activities of continuing operations |
993 |
|
|
|
668 |
|
|
|
1,834 |
|
|
|
1,607 |
|
|
||||
|
Net cash provided by (used in) operating activities of discontinued operations |
2 |
|
|
|
(4 |
) |
|
|
2 |
|
|
|
(7 |
) |
|
||||
|
Net cash provided by (used in) operating activities |
995 |
|
|
|
664 |
|
|
|
1,836 |
|
|
|
1,600 |
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||||||
|
Investing activities: |
|
|
|
|
|
|
|
||||||||||||
|
Additions to property, plant and mine development |
(415 |
) |
|
|
(280 |
) |
|
|
(814 |
) |
|
|
(608 |
) |
|
||||
|
Acquisitions, net |
(328 |
) |
|
|
— |
|
|
|
(328 |
) |
|
|
— |
|
|
||||
|
Proceeds from sales of investments |
22 |
|
|
|
6 |
|
|
|
84 |
|
|
|
270 |
|
|
||||
|
Contributions to equity method investees |
(45 |
) |
|
|
(8 |
) |
|
|
(72 |
) |
|
|
(14 |
) |
|
||||
|
Return of investment from equity method investees |
— |
|
|
|
— |
|
|
|
18 |
|
|
|
43 |
|
|
||||
|
Purchases of investments |
(12 |
) |
|
|
(21 |
) |
|
|
(16 |
) |
|
|
(33 |
) |
|
||||
|
Proceeds from sales of mining operations and other assets, net |
— |
|
|
|
14 |
|
|
|
1 |
|
|
|
1,135 |
|
|
||||
|
Other |
1 |
|
|
|
5 |
|
|
|
— |
|
|
|
46 |
|
|
||||
|
Net cash provided by (used in) investing activities |
(777 |
) |
|
|
(284 |
) |
|
|
(1,127 |
) |
|
|
839 |
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||||||
|
Financing activities: |
|
|
|
|
|
|
|
||||||||||||
|
Dividends paid to common stockholders |
(440 |
) |
|
|
(201 |
) |
|
|
(881 |
) |
|
|
(313 |
) |
|
||||
|
Repayment of debt |
(550 |
) |
|
|
(90 |
) |
|
|
(550 |
) |
|
|
(1,160 |
) |
|
||||
|
Repurchases of common stock |
(134 |
) |
|
|
— |
|
|
|
(134 |
) |
|
|
(321 |
) |
|
||||
|
Distributions to noncontrolling interests |
(43 |
) |
|
|
(42 |
) |
|
|
(97 |
) |
|
|
(88 |
) |
|
||||
|
Funding from noncontrolling interests |
18 |
|
|
|
27 |
|
|
|
48 |
|
|
|
55 |
|
|
||||
|
Payments on lease and other financing obligations |
(18 |
) |
|
|
(17 |
) |
|
|
(36 |
) |
|
|
(33 |
) |
|
||||
|
Payments for withholding of employee taxes related to stock-based compensation |
(1 |
) |
|
|
(3 |
) |
|
|
(29 |
) |
|
|
(39 |
) |
|
||||
|
Proceeds from issuance of debt, net |
— |
|
|
|
— |
|
|
|
— |
|
|
|
985 |
|
|
||||
|
Other |
13 |
|
|
|
35 |
|
|
|
13 |
|
|
|
37 |
|
|
||||
|
Net cash provided by (used in) financing activities |
(1,155 |
) |
|
|
(291 |
) |
|
|
(1,666 |
) |
|
|
(877 |
) |
|
||||
|
Effect of exchange rate changes on cash, cash equivalents and restricted cash |
2 |
|
|
|
4 |
|
|
|
— |
|
|
|
— |
|
|
||||
|
Net change in cash, cash equivalents and restricted cash |
(935 |
) |
|
|
93 |
|
|
|
(957 |
) |
|
|
1,562 |
|
|
||||
|
Cash, cash equivalents and restricted cash at beginning of period |
5,626 |
|
|
|
3,818 |
|
|
|
5,648 |
|
|
|
2,349 |
|
|
||||
|
Cash, cash equivalents and restricted cash at end of period |
$ |
4,691 |
|
|
|
$ |
3,911 |
|
|
|
$ |
4,691 |
|
|
|
$ |
3,911 |
|
|
Contacts
Media Contact
Courtney Boone
303.837.5159
[email protected]
Investor Contact
Eric Colby
303.837.5724
[email protected]
