UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
(Mark One)
☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the Quarterly Period Ended June 30, 2023March 31, 2024
or
☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from__________to__________
Commission File Number: 001-31240
NEWMONT CORPORATION
(Exact name of registrant as specified in its charter) | | | | | | | | |
| | |
| Delaware | | 84-1611629 |
| (State or Other Jurisdiction of Incorporation or Organization) | | (I.R.S. Employer Identification No.) |
| | |
| 6900 E Layton Ave | | |
| Denver, Colorado | | 80237 |
| (Address of Principal Executive Offices) | | (Zip Code) |
| Registrant’s telephone number, including area code (303) 863-7414 |
|
| | |
Securities registered or to be registered pursuant to Section 12(b) of the Act. | | | | | | | | | | | | | | |
| Title of each class | | Trading Symbol | | Name of each exchange on which registered |
| Common stock, par value $1.60 per share | | NEM | | New York Stock Exchange |
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. ☒ Yes ☐ No
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). ☒ Yes ☐ No
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12-b2 of the Exchange Act.
| | | | | | | | | | | | | | |
| Large accelerated filer | ☒ | | Accelerated filer | ☐ |
| Non-accelerated filer | ☐ | | Smaller reporting company | ☐ |
| | | Emerging growth company | ☐ |
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12-b2 of the Exchange Act). ☐ Yes ☒ No
There were 794,732,4431,153,140,195 shares of common stock outstanding on July 13, 2023.April 22, 2024.
GLOSSARY: UNITS OF MEASURE AND ABBREVIATIONS | | | | | | | | |
| Unit | | Unit of Measure |
| $ | | United States Dollar |
| % | | Percent |
| A$ | | Australian Dollar |
| C$ | | Canadian Dollar |
| gram | | Metric Gram |
| ounce | | Troy Ounce |
| pound | | United States Pound |
| tonne | | Metric Ton |
| | | | | | | | |
| Abbreviation | | Description |
AISC (1) | | All-In Sustaining Costs |
| ARC | | Asset Retirement Cost |
| | |
| ASC | | FASB Accounting Standard Codification |
| ASU | | FASB Accounting Standard Update |
| AUD | | Australian Dollar |
| CAD | | Canadian Dollar |
| CAS | | Costs Applicable to Sales |
| DTA | | Deferred tax asset |
| DTL | | Deferred tax liability |
EBITDA (1) | | Earnings Before Interest, Taxes, Depreciation and Amortization |
| EIA | | Environmental Impact Assessment |
| EPA | | U.S. Environmental Protection Agency |
| ESG | | Environmental, Social and Governance |
| Exchange Act | | U.S. Securities Exchange Act of 1934 |
| FASB | | Financial Accounting Standards Board |
| GAAP | | U.S. Generally Accepted Accounting Principles |
GEO (2) | | Gold Equivalent Ounces |
| GHG | | Greenhouse Gases, which are defined by the EPA as gases that trap heat in the atmosphere |
| GITSM | | Global Industry Standard on Tailings Management |
| IASB | | International Accounting Standards Board |
| IFRS | | International Financial Reporting Standards |
| | |
| LIBOR | | London Interbank Offered Rate |
| LBMA | | London Bullion Market Association |
| LME | | London Metal Exchange |
| MD&A | | Management’s Discussion and Analysis of Consolidated Financial Condition and Results of Operations |
| MINAM | | Ministry of the Environment of Peru |
| Mine Act | | U.S. Federal Mine Safety and Health Act of 1977 |
| MINEM | | Ministry of Energy and Mines of Peru |
| MSHA | | Federal Mine Safety and Health Administration |
| MXN | | Mexican Peso |
| NPDES | | National Pollutant Discharge Elimination System |
| SEC | | U.S. Securities and Exchange Commission |
| Securities Act | | U.S. Securities Act of 1933 |
| SOFR | | Secured Overnight Financing Rate |
| U.S. | | The United States of America |
| USD | | United States Dollar |
| WTP | | Water Treatment Plant |
| | |
|
____________________________
(1)Refer to Non-GAAP Financial Measures within Part I, Item 2, MD&A.
(2)Refer to Results of Consolidated Operations within Part I, Item 2, MD&A.
NEWMONT CORPORATION
SECONDFIRST QUARTER 20232024 RESULTS AND HIGHLIGHTS
(unaudited, in millions, except per share, per ounce and per pound)
| | Three Months Ended
June 30, | | Six Months Ended
June 30, |
| 2023 | | 2022 | | 2023 | | 2022 |
| | | Three Months Ended
March 31, | |
| | | Three Months Ended
March 31, | |
| | | Three Months Ended
March 31, | |
| | | | | 2024 | | | | | | | 2024 | | 2023 |
| Financial Results: | Financial Results: | | | | | | | |
| Sales | |
| Sales | |
| Sales | Sales | $ | 2,683 | | | $ | 3,058 | | | $ | 5,362 | | | $ | 6,081 | |
| Gold | Gold | $ | 2,380 | | | $ | 2,722 | | | $ | 4,683 | | | $ | 5,236 | |
| Copper | Copper | $ | 82 | | | $ | 76 | | | $ | 192 | | | $ | 175 | |
| Silver | Silver | $ | 124 | | | $ | 140 | | | $ | 241 | | | $ | 296 | |
| Lead | Lead | $ | 32 | | | $ | 28 | | | $ | 64 | | | $ | 72 | |
| Zinc | Zinc | $ | 65 | | | $ | 92 | | | $ | 182 | | | $ | 302 | |
Costs applicable to sales (1) | Costs applicable to sales (1) | $ | 1,543 | | | $ | 1,708 | | | $ | 3,025 | | | $ | 3,143 | |
| Gold | Gold | $ | 1,277 | | | $ | 1,381 | | | $ | 2,516 | | | $ | 2,565 | |
| Copper | Copper | $ | 48 | | | $ | 49 | | | $ | 101 | | | $ | 95 | |
| Silver | Silver | $ | 95 | | | $ | 155 | | | $ | 177 | | | $ | 252 | |
| Lead | Lead | $ | 33 | | | $ | 29 | | | $ | 55 | | | $ | 51 | |
| Zinc | Zinc | $ | 90 | | | $ | 94 | | | $ | 176 | | | $ | 180 | |
| Net income (loss) from continuing operations | Net income (loss) from continuing operations | $ | 153 | | | $ | 392 | | | $ | 504 | | | $ | 845 | |
| Net income (loss) | Net income (loss) | $ | 155 | | | $ | 400 | | | $ | 518 | | | $ | 869 | |
| Net income (loss) from continuing operations attributable to Newmont stockholders | Net income (loss) from continuing operations attributable to Newmont stockholders | $ | 153 | | | $ | 379 | | | $ | 492 | | | $ | 811 | |
| Per common share, diluted: | Per common share, diluted: | |
| Net income (loss) from continuing operations attributable to Newmont stockholders | Net income (loss) from continuing operations attributable to Newmont stockholders | $ | 0.19 | | | $ | 0.48 | | | $ | 0.62 | | | $ | 1.02 | |
| Net income (loss) from continuing operations attributable to Newmont stockholders | |
| Net income (loss) from continuing operations attributable to Newmont stockholders | |
| Net income (loss) attributable to Newmont stockholders | Net income (loss) attributable to Newmont stockholders | $ | 0.19 | | | $ | 0.49 | | | $ | 0.64 | | | $ | 1.05 | |
Adjusted net income (loss) (2) | Adjusted net income (loss) (2) | $ | 266 | | | $ | 362 | | | $ | 586 | | | $ | 908 | |
Adjusted net income (loss) per share, diluted (2) | Adjusted net income (loss) per share, diluted (2) | $ | 0.33 | | | $ | 0.46 | | | $ | 0.74 | | | $ | 1.14 | |
Earnings before interest, taxes and depreciation and amortization (2) | Earnings before interest, taxes and depreciation and amortization (2) | $ | 835 | | | $ | 1,024 | | | $ | 1,900 | | | $ | 2,261 | |
Adjusted earnings before interest, taxes and depreciation and amortization (2) | Adjusted earnings before interest, taxes and depreciation and amortization (2) | $ | 910 | | | $ | 1,149 | | | $ | 1,900 | | | $ | 2,539 | |
| Net cash provided by (used in) operating activities of continuing operations | Net cash provided by (used in) operating activities of continuing operations | | $ | 1,137 | | | $ | 1,722 | |
Free cash flow (2) | Free cash flow (2) | | $ | (5) | | | $ | 766 | |
| Cash dividends paid per common share in the period ended June 30 | $ | 0.40 | | | $ | 0.55 | | | $ | 0.80 | | | $ | 1.10 | |
| Cash dividends declared per common share for the period ended June 30 | $ | 0.40 | | | $ | 0.55 | | | $ | 0.80 | | | $ | 1.10 | |
| Cash dividends paid per common share in the period ended March 31 | |
| Cash dividends declared per common share for the period ended March 31 | |
|
____________________________
(1)Excludes Depreciation and amortization and Reclamation and remediation.
(2)Refer to Non-GAAP Financial Measures within Part I, Item 2, MD&A.
NEWMONT CORPORATION
SECONDFIRST QUARTER 20232024 RESULTS AND HIGHLIGHTS
(unaudited, in millions, except per share, per ounce and per pound)
| | Three Months Ended
June 30, | | Six Months Ended
June 30, |
| 2023 | | 2022 | | 2023 | | 2022 |
| | | Three Months Ended
March 31, | |
| | | Three Months Ended
March 31, | |
| | | Three Months Ended
March 31, | |
| | | | | 2024 | | | | | | | 2024 | | 2023 |
| Operating Results: | Operating Results: | | | | | | | |
| Consolidated gold ounces (thousands): | Consolidated gold ounces (thousands): | |
| Consolidated gold ounces (thousands): | |
| Consolidated gold ounces (thousands): | |
| Produced | |
| Produced | |
| Produced | Produced | 1,203 | | | 1,453 | | | 2,436 | | | 2,764 | |
| Sold | Sold | 1,211 | | | 1,482 | | | 2,419 | | | 2,811 | |
| Attributable gold ounces (thousands): | Attributable gold ounces (thousands): | |
Produced (1) | Produced (1) | 1,240 | | | 1,495 | | | 2,513 | | | 2,839 | |
Produced (1) | |
Produced (1) | |
Sold (2) | Sold (2) | 1,197 | | | 1,455 | | | 2,385 | | | 2,746 | |
Consolidated and attributable gold equivalent ounces - other metals (thousands) (3) | |
Consolidated and attributable gold equivalent ounces - other metals (thousands): (3) | |
| Produced | |
| Produced | |
| Produced | Produced | 256 | | | 330 | | | 544 | | | 680 | |
| Sold | Sold | 251 | | | 333 | | | 516 | | | 683 | |
| Consolidated and attributable - other metals: | Consolidated and attributable - other metals: | |
| Produced copper (million pounds) | 26 | | | 24 | | | 52 | | | 43 | |
| Sold copper (million pounds) | 25 | | | 25 | | | 51 | | | 46 | |
| Produced silver (thousand ounces) | 6,323 | | | 7,733 | | | 13,786 | | | 15,813 | |
| Sold silver (thousand ounces) | 5,999 | | | 8,066 | | | 12,123 | | | 15,718 | |
| Produced lead (million pounds) | 45 | | | 35 | | | 86 | | | 79 | |
| Sold lead (million pounds) | 36 | | | 35 | | | 72 | | | 77 | |
| Produced zinc (million pounds) | 78 | | | 94 | | | 180 | | | 208 | |
| Sold zinc (million pounds) | 90 | | | 85 | | | 189 | | | 205 | |
| Produced copper: | |
| Produced copper: | |
| Produced copper: | |
| Pounds (millions) | |
| Pounds (millions) | |
| Pounds (millions) | |
| Tonnes (thousands) | |
| Sold copper: | |
| Pounds (millions) | |
| Pounds (millions) | |
| Pounds (millions) | |
| Tonnes (thousands) | |
Produced silver (million ounces) | |
Sold silver (million ounces) | |
| Produced lead: | |
| Pounds (millions) | |
| Pounds (millions) | |
| Pounds (millions) | |
| Tonnes (thousands) | |
| Sold lead: | |
| Pounds (millions) | |
| Pounds (millions) | |
| Pounds (millions) | |
| Tonnes (thousands) | |
| Produced zinc: | |
| Pounds (millions) | |
| Pounds (millions) | |
| Pounds (millions) | |
| Tonnes (thousands) | |
| Sold zinc: | |
| Pounds (millions) | |
| Pounds (millions) | |
| Pounds (millions) | |
| Tonnes (thousands) | |
| Average realized price: | Average realized price: | |
| Gold (per ounce) | |
| Gold (per ounce) | |
| Gold (per ounce) | Gold (per ounce) | $ | 1,965 | | | $ | 1,836 | | | $ | 1,936 | | | $ | 1,863 | |
| Copper (per pound) | Copper (per pound) | $ | 3.26 | | | $ | 2.99 | | | $ | 3.73 | | | $ | 3.81 | |
| Silver (per ounce) | Silver (per ounce) | $ | 20.56 | | | $ | 17.42 | | | $ | 19.85 | | | $ | 18.85 | |
| Lead (per pound) | Lead (per pound) | $ | 0.92 | | | $ | 0.80 | | | $ | 0.89 | | | $ | 0.94 | |
| Zinc (per pound) | Zinc (per pound) | $ | 0.73 | | | $ | 1.08 | | | $ | 0.96 | | | $ | 1.47 | |
Consolidated costs applicable to sales: (4)(5) | Consolidated costs applicable to sales: (4)(5) | |
| Gold (per ounce) | Gold (per ounce) | $ | 1,054 | | | $ | 932 | | | $ | 1,040 | | | $ | 912 | |
| Gold (per ounce) | |
| Gold (per ounce) | |
Gold equivalent ounces - other metals (per ounce) (3) | Gold equivalent ounces - other metals (per ounce) (3) | $ | 1,062 | | | $ | 983 | | | $ | 988 | | | $ | 846 | |
All-in sustaining costs: (5) | All-in sustaining costs: (5) | |
| Gold (per ounce) | Gold (per ounce) | $ | 1,472 | | | $ | 1,199 | | | $ | 1,424 | | | $ | 1,179 | |
| Gold (per ounce) | |
| Gold (per ounce) | |
Gold equivalent ounces - other metals (per ounce) (3) | Gold equivalent ounces - other metals (per ounce) (3) | $ | 1,492 | | | $ | 1,286 | | | $ | 1,405 | | | $ | 1,138 | |
(1)Attributable gold ounces produced includes 5154 and 7060 thousand ounces for the three months ended June 30,March 31, 2024 and 2023, and 2022, respectively, and 111 and 139 thousand ounces for the six months ended June 30, 2023 and 2022, respectively, related to the Pueblo Viejo mine, which is 40% owned by Newmont and accounted for as an equity method investment. For the three months ended March 31, 2024, Attributable gold ounces produced also includes 21 thousand ounces related to the Fruta del Norte mine, which is wholly owned
by Lundin Gold, in which the Company holds a 31.9% interest at March 31, 2024 and is accounted for as an equity method investment on a quarter lag.
(2)Attributable gold ounces sold excludes ounces related to the Pueblo Viejo mine which is 40% owned by Newmont and accounted for as an equity method investment.the Fruta del Norte mine.
(3)Gold equivalent ounces are calculated as pounds or ounces produced or sold multiplied by the ratio of the other metals’ price to the gold price. In 2023, the Company updated the metal prices utilized for this calculation to align with reserve metal price assumptions; this resulted in fewer calculated gold equivalent ounces - other metals produced and sold of 48 thousand ounces and 47 thousand ounces, respectively, for the three months ended June 30, 2023, and 103 thousand ounces and 95 thousand ounces, respectively, for the six months ended June 30, 2023, than would have been calculated based on the pricing used in 2022 for this calculation. Refer to Results of Consolidated Operations within Part I, Item 2, Management's Discussion and AnalysisMD&A for further information.
(4)Excludes Depreciation and amortization and Reclamation and remediation.
(5)Refer to Non-GAAP Financial Measures within Part I, Item 2, Management's Discussion and Analysis.
SecondFirst Quarter 20232024 Highlights (dollars in millions, except per share, per ounce and per pound amounts)
•Net income: Reported Net income (loss) from continuing operations attributable to Newmont stockholders of $153$166 or $0.19$0.15 per diluted share, a decrease of $226$173 from the prior-year quarter primarily due to a decrease inthe SalesLoss on assets held for sale resulting largely from lower gold sales volumes, which includes the impacts arising from (i) work stoppage at Peñasquito for the month of June 2023 due to a labor strike$485 and (ii) lower production at Akyem to re-sequence the mine plan and temporarily suspend miningan increase in the main pit to make safety improvements and fortify the catch berms above the haul road into the pit. Additionally, the decreasewas the result of higher income tax expense, partially offset by lower Costs applicable to sales, partially offset by an increase in Sales resulting from higher sales volumes for all metals and a decreasehigher average realized price for gold, an increase to attributable net incomeof $224 related to the acquired Newcrest sites, and higher production at Tanami, compared to the prior period, due to significant rainfall in unrealized losses on marketable equity securities, and lower Depreciation and amortization.early 2023.
•Adjusted net income: Reported Adjusted net income of $266$630 or $0.33$0.55 per diluted share, a decreasean increase of $0.13$0.15 per diluted share from the prior-year quarter (see Non-GAAP Financial Measures within Part I, Item 2, MD&A).
•Adjusted EBITDA: Reported $910$1,694 in Adjusted EBITDA, a decreasean increase of 21%71% from the prior-year quarter (see Non-GAAP Financial Measures within Part I, Item 2, MD&A).
•Cash Flow:flow: Reported Net cash provided by (used in) operating activities of continuing operations of $1,137, a decrease$776, an increase of 34%61% from the prior year, and free cash flow of $(5)$(74) (see Non-GAAP Financial Measures within Part I, Item 2, MD&A).Net cash provided by (used in) operating activities included a payment of $291 on the Stamp Duty, related to the Newcrest transaction, in the first quarter of 2024.
•Portfolio Updates: Announced intent to divest six non-core assets, which include CC&V, Musselwhite, Porcupine, Éléonore, Telfer and Akyem, as well as the Coffee development project in Canada.
•ESG: Published 3rd annual climate report in May 2023In April 2024, published our Annual Sustainability Report, providing a transparent view on howof ESG performance, and the Company understandsTaxes and is addressing climate change from managing physicalRoyalties Contribution Report, providing an overview of the Company's tax strategy and transition climate risk,economic contributions as part of its commitment to climate impacts and reducing our greenhouse gas emissions.shared value creation.
•Attributable gold production: Produced 1.21.7 million attributable ounces of gold and 256489 thousand attributable gold equivalent ounces from co-products.
•Financial strength: Ended the quarter with $2.8$2.3 billion of consolidated cash, $374 millioncash of time deposits with a maturity of more than three months but less than one year, $342 included in Current assets held for sale, and $6.2$6.7 billion of total liquidity; declared a dividend of $0.40$0.25 per share in July 2023.April 2024.
PART I—FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS.
NEWMONT CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited, in millions except per share)
| | Three Months Ended
June 30, | | Six Months Ended
June 30, |
| 2023 | | 2022 | | 2023 | | 2022 |
| Sales (Note 4) | $ | 2,683 | | | $ | 3,058 | | | $ | 5,362 | | | $ | 6,081 | |
| | | Three Months Ended
March 31, | |
| | | Three Months Ended
March 31, | |
| | | Three Months Ended
March 31, | |
| | | | | 2024 | | | | | | | 2024 | | 2023 |
| Sales (Note 6) | |
| | Costs and expenses: | Costs and expenses: | |
| Costs and expenses: | |
| Costs and expenses: | |
Costs applicable to sales (1) | |
Costs applicable to sales (1) | |
Costs applicable to sales (1) | Costs applicable to sales (1) | 1,543 | | | 1,708 | | | 3,025 | | | 3,143 | |
| Depreciation and amortization | Depreciation and amortization | 486 | | | 559 | | | 947 | | | 1,106 | |
| Reclamation and remediation (Note 5) | 66 | | | 49 | | | 132 | | | 110 | |
| Reclamation and remediation (Note 7) | |
| Exploration | Exploration | 66 | | | 62 | | | 114 | | | 100 | |
| Advanced projects, research and development | Advanced projects, research and development | 44 | | | 45 | | | 79 | | | 89 | |
| General and administrative | General and administrative | 71 | | | 73 | | | 145 | | | 137 | |
| Loss on assets held for sale (Note 5) | |
| | Other expense, net (Note 6) | 41 | | | 22 | | | 49 | | | 57 | |
| 2,317 | | | 2,518 | | | 4,491 | | | 4,742 | |
| Other expense, net (Note 8) | |
| Other expense, net (Note 8) | |
| Other expense, net (Note 8) | |
| | | | | 3,623 | |
| Other income (expense): | Other income (expense): | | | | | | | |
| | Other income (loss), net (Note 7) | (17) | | | (75) | | | 82 | | | (184) | |
| Other income (loss), net (Note 9) | |
| | Other income (loss), net (Note 9) | |
| | Other income (loss), net (Note 9) | |
| Interest expense, net of capitalized interest | Interest expense, net of capitalized interest | (49) | | | (57) | | | (114) | | | (119) | |
| (66) | | | (132) | | | (32) | | | (303) | |
| | | | | 28 | |
| Income (loss) before income and mining tax and other items | Income (loss) before income and mining tax and other items | 300 | | | 408 | | | 839 | | | 1,036 | |
| Income and mining tax benefit (expense) (Note 8) | (163) | | | (33) | | | (376) | | | (247) | |
| Equity income (loss) of affiliates (Note 11) | 16 | | | 17 | | | 41 | | | 56 | |
| Income and mining tax benefit (expense) (Note 10) | |
| Equity income (loss) of affiliates (Note 13) | |
| Net income (loss) from continuing operations | Net income (loss) from continuing operations | 153 | | | 392 | | | 504 | | | 845 | |
| Net income (loss) from discontinued operations | Net income (loss) from discontinued operations | 2 | | | 8 | | | 14 | | | 24 | |
| Net income (loss) | Net income (loss) | 155 | | | 400 | | | 518 | | | 869 | |
| Net loss (income) attributable to noncontrolling interests (Note 1) | Net loss (income) attributable to noncontrolling interests (Note 1) | — | | | (13) | | | (12) | | | (34) | |
| Net income (loss) attributable to Newmont stockholders | Net income (loss) attributable to Newmont stockholders | $ | 155 | | | $ | 387 | | | $ | 506 | | | $ | 835 | |
| | Net income (loss) attributable to Newmont stockholders: | Net income (loss) attributable to Newmont stockholders: | |
| Net income (loss) attributable to Newmont stockholders: | |
| Net income (loss) attributable to Newmont stockholders: | |
| Continuing operations | |
| Continuing operations | |
| Continuing operations | Continuing operations | $ | 153 | | | $ | 379 | | | $ | 492 | | | $ | 811 | |
| Discontinued operations | Discontinued operations | 2 | | | 8 | | | 14 | | | 24 | |
| $ | 155 | | | $ | 387 | | | $ | 506 | | | $ | 835 | |
| | | | | $ | |
| Weighted average common shares (millions): | Weighted average common shares (millions): | | | | | | | |
| Basic | |
| Basic | |
| Basic | Basic | 795 | | 794 | | 794 | | 793 | | | | | 1,153 | | 794 |
| Effect of employee stock-based awards | Effect of employee stock-based awards | — | | | 1 | | 1 | | 2 | Effect of employee stock-based awards | | | | | — | | 1 |
| Diluted | Diluted | 795 | | 795 | | 795 | | 795 | Diluted | | | | | 1,153 | | 795 |
| | Net income (loss) attributable to Newmont stockholders per common share: | Net income (loss) attributable to Newmont stockholders per common share: | |
| Net income (loss) attributable to Newmont stockholders per common share: | |
| Net income (loss) attributable to Newmont stockholders per common share: | |
| Basic: | |
| Basic: | |
| Basic: | Basic: | |
| Continuing operations | Continuing operations | $ | 0.19 | | | $ | 0.48 | | | $ | 0.62 | | | $ | 1.02 | |
| Continuing operations | |
| Continuing operations | |
| Discontinued operations | Discontinued operations | — | | | 0.01 | | | 0.02 | | | 0.03 | |
| $ | 0.19 | | | $ | 0.49 | | | $ | 0.64 | | | $ | 1.05 | |
| | | | | $ | |
| Diluted: | Diluted: | | | | | | | |
| Continuing operations | Continuing operations | $ | 0.19 | | | $ | 0.48 | | | $ | 0.62 | | | $ | 1.02 | |
| Continuing operations | |
| Continuing operations | |
| Discontinued operations | Discontinued operations | — | | | 0.01 | | | 0.02 | | | 0.03 | |
| $ | 0.19 | | | $ | 0.49 | | | $ | 0.64 | | | $ | 1.05 | |
| | | | | $ | |
____________________________
(1)Excludes Depreciation and amortization and Reclamation and remediation.
The accompanying notes are an integral part of the Condensed Consolidated Financial Statements.
NEWMONT CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(unaudited, in millions)
| | Three Months Ended
June 30, | | Six Months Ended
June 30, |
| 2023 | | 2022 | | 2023 | | 2022 |
| | | Three Months Ended
March 31, | |
| | | Three Months Ended
March 31, | |
| | | Three Months Ended
March 31, | |
| | | | | 2024 | | | | | | | 2024 | | 2023 |
| Net income (loss) | Net income (loss) | $ | 155 | | | $ | 400 | | | $ | 518 | | | $ | 869 | |
| Other comprehensive income (loss): | Other comprehensive income (loss): | |
| Change in marketable securities, net of tax | Change in marketable securities, net of tax | — | | | (1) | | | (1) | | | (2) | |
| Change in marketable securities, net of tax | |
| Change in marketable securities, net of tax | |
| Foreign currency translation adjustments | Foreign currency translation adjustments | (4) | | | 2 | | | (5) | | | 1 | |
| Change in pension and other post-retirement benefits, net of tax | Change in pension and other post-retirement benefits, net of tax | (2) | | | (1) | | | (3) | | | 121 | |
| Reclassification of (gain) loss on cash flow hedges from accumulated other comprehensive income (loss), net of tax | (4) | | | 1 | | | (7) | | | 2 | |
| Change in cash flow hedges, net of tax | |
| Other comprehensive income (loss) | Other comprehensive income (loss) | (10) | | | 1 | | | (16) | | | 122 | |
| Comprehensive income (loss) | Comprehensive income (loss) | $ | 145 | | | $ | 401 | | | $ | 502 | | | $ | 991 | |
| | Comprehensive income (loss) attributable to: | Comprehensive income (loss) attributable to: | |
| Comprehensive income (loss) attributable to: | |
| Comprehensive income (loss) attributable to: | |
| Newmont stockholders | |
| Newmont stockholders | |
| Newmont stockholders | Newmont stockholders | $ | 145 | | | $ | 388 | | | $ | 490 | | | $ | 957 | |
| Noncontrolling interests | Noncontrolling interests | — | | | 13 | | | 12 | | | 34 | |
| $ | 145 | | | $ | 401 | | | $ | 502 | | | $ | 991 | |
| | | | | $ | |
The accompanying notes are an integral part of the Condensed Consolidated Financial Statements.
NEWMONT CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited, in millions)
| | | | | | | | | | | |
| At June 30,
2023 | | At December 31,
2022 |
| ASSETS | | | |
| Cash and cash equivalents | $ | 2,829 | | | $ | 2,877 | |
| Time deposits and other investments (Note 11) | 409 | | | 880 | |
| Trade receivables (Note 4) | 185 | | | 366 | |
| Inventories (Note 12) | 1,111 | | | 979 | |
| Stockpiles and ore on leach pads (Note 13) | 858 | | | 774 | |
| | | |
| Other current assets | 742 | | | 639 | |
| | | |
| Current assets | 6,134 | | | 6,515 | |
| Property, plant and mine development, net | 24,284 | | | 24,073 | |
| Investments (Note 11) | 3,172 | | | 3,278 | |
| Stockpiles and ore on leach pads (Note 13) | 1,737 | | | 1,716 | |
| Deferred income tax assets | 166 | | | 173 | |
| Goodwill | 1,971 | | | 1,971 | |
| Other non-current assets | 669 | | | 756 | |
| | | |
| Total assets | $ | 38,133 | | | $ | 38,482 | |
| | | |
| LIABILITIES | | | |
| Accounts payable | $ | 565 | | | $ | 633 | |
| Employee-related benefits | 313 | | | 399 | |
| Income and mining taxes payable | 155 | | | 199 | |
| Lease and other financing obligations | 96 | | | 96 | |
| | | |
| Other current liabilities (Note 15) | 1,564 | | | 1,599 | |
| | | |
| Current liabilities | 2,693 | | | 2,926 | |
| Debt (Note 14) | 5,574 | | | 5,571 | |
| Lease and other financing obligations | 441 | | | 465 | |
| Reclamation and remediation liabilities (Note 5) | 6,604 | | | 6,578 | |
| Deferred income tax liabilities | 1,795 | | | 1,809 | |
| Employee-related benefits | 399 | | | 342 | |
| Silver streaming agreement | 786 | | | 828 | |
| Other non-current liabilities (Note 15) | 426 | | | 430 | |
| | | |
| Total liabilities | 18,718 | | | 18,949 | |
| | | |
| Commitments and contingencies (Note 18) | | | |
| | | |
| EQUITY | | | |
| Common stock | 1,281 | | | 1,279 | |
| Treasury stock | (261) | | | (239) | |
| Additional paid-in capital | 17,407 | | | 17,369 | |
| Accumulated other comprehensive income (loss) (Note 16) | 13 | | | 29 | |
| Retained earnings (accumulated deficit) | 785 | | | 916 | |
| Newmont stockholders' equity | 19,225 | | | 19,354 | |
| Noncontrolling interests | 190 | | | 179 | |
| Total equity | 19,415 | | | 19,533 | |
| Total liabilities and equity | $ | 38,133 | | | $ | 38,482 | |
The accompanying notes are an integral part of the Condensed Consolidated Financial Statements.
| | | | | | | | | | | |
| At March 31,
2024 | | At December 31,
2023 |
| ASSETS | | | |
| Cash and cash equivalents | $ | 2,336 | | | $ | 3,002 | |
| Trade receivables (Note 6) | 782 | | | 734 | |
| Investments (Note 13) | 23 | | | 23 | |
| Inventories (Note 14) | 1,385 | | | 1,663 | |
| Stockpiles and ore on leach pads (Note 15) | 745 | | | 979 | |
| | | |
| | | |
| Derivative assets (Note 12) | 114 | | | 198 | |
| Other current assets | 765 | | | 913 | |
| Current assets held for sale (Note 5) | 5,656 | | | — | |
| Current assets | 11,806 | | | 7,512 | |
| Property, plant and mine development, net | 33,564 | | | 37,563 | |
| Investments (Note 13) | 4,138 | | | 4,143 | |
| Stockpiles and ore on leach pads (Note 15) | 1,837 | | | 1,935 | |
| Deferred income tax assets | 210 | | | 268 | |
| Goodwill | 2,792 | | | 3,001 | |
| Derivative assets (Note 12) | 412 | | | 444 | |
| Other non-current assets | 576 | | | 640 | |
| | | |
| Total assets | $ | 55,335 | | | $ | 55,506 | |
| | | |
| LIABILITIES | | | |
| Accounts payable | $ | 698 | | | $ | 960 | |
| Employee-related benefits | 414 | | | 551 | |
| Income and mining taxes payable | 136 | | | 88 | |
| Lease and other financing obligations | 99 | | | 114 | |
| Debt (Note 16) | — | | | 1,923 | |
| Other current liabilities (Note 17) | 1,784 | | | 2,362 | |
| Current liabilities held for sale (Note 5) | 2,351 | | | — | |
| Current liabilities | 5,482 | | | 5,998 | |
| Debt (Note 16) | 8,933 | | | 6,951 | |
| Lease and other financing obligations | 436 | | | 448 | |
| Reclamation and remediation liabilities (Note 7) | 6,652 | | | 8,167 | |
| Deferred income tax liabilities | 3,094 | | | 2,987 | |
| Employee-related benefits | 610 | | | 655 | |
| Silver streaming agreement | 753 | | | 779 | |
| Other non-current liabilities (Note 17) | 300 | | | 316 | |
| | | |
| Total liabilities | 26,260 | | | 26,301 | |
| | | |
| Commitments and contingencies (Note 20) | | | |
| | | |
| EQUITY | | | |
| Common stock | 1,855 | | | 1,854 | |
| Treasury stock | (274) | | | (264) | |
| Additional paid-in capital | 30,436 | | | 30,419 | |
| Accumulated other comprehensive income (loss) (Note 18) | (16) | | | 14 | |
| (Accumulated deficit) Retained earnings | (3,111) | | | (2,996) | |
| Newmont stockholders' equity | 28,890 | | | 29,027 | |
| Noncontrolling interests | 185 | | | 178 | |
| Total equity | 29,075 | | | 29,205 | |
| Total liabilities and equity | $ | 55,335 | | | $ | 55,506 | |
Table of ContentsNEWMONT CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited, in millions)
| | | | | | | | | | | |
| Six Months Ended
June 30, |
| 2023 | | 2022 |
| Operating activities: | | | |
| Net income (loss) | $ | 518 | | | $ | 869 | |
| Non-cash adjustments: | | | |
| Depreciation and amortization | 947 | | | 1,106 | |
| Net loss (income) from discontinued operations | (14) | | | (24) | |
| Reclamation and remediation | 120 | | | 103 | |
| Stock-based compensation | 42 | | | 40 | |
| (Gain) loss on asset and investment sales, net (Note 7) | (36) | | | 35 | |
| | | |
| Deferred income taxes | 21 | | | (111) | |
| Change in fair value of investments (Note 7) | 1 | | | 96 | |
| | | |
| | | |
| | | |
| | | |
| | | |
| Charges from pension settlement (Note 7) | — | | | 130 | |
| Other non-cash adjustments | 7 | | | (20) | |
| Net change in operating assets and liabilities (Note 17) | (469) | | | (502) | |
| Net cash provided by (used in) operating activities of continuing operations | 1,137 | | | 1,722 | |
| Net cash provided by (used in) operating activities of discontinued operations | 7 | | | 15 | |
| Net cash provided by (used in) operating activities | 1,144 | | | 1,737 | |
| | | |
| Investing activities: | | | |
| Additions to property, plant and mine development | (1,142) | | | (956) | |
| Proceeds from maturities of investments | 981 | | | — | |
| Purchases of investments | (542) | | | (8) | |
| Proceeds from asset and investment sales | 214 | | | 41 | |
| | | |
| Contributions to equity method investees | (64) | | | (91) | |
| Return of investment from equity method investees | 30 | | | 39 | |
| | | |
| | | |
| Other | 23 | | | (59) | |
| | | |
| | | |
| Net cash provided by (used in) investing activities | (500) | | | (1,034) | |
| | | |
| Financing activities: | | | |
| Dividends paid to common stockholders | (636) | | | (873) | |
| Funding from noncontrolling interests | 75 | | | 56 | |
| Distributions to noncontrolling interests | (66) | | | (103) | |
| Payments on lease and other financing obligations | (32) | | | (34) | |
| Payments for withholding of employee taxes related to stock-based compensation | (22) | | | (36) | |
| | | |
| Acquisition of noncontrolling interests (Note 1) | — | | | (348) | |
| Repayment of debt | — | | | (89) | |
| | | |
| | | |
| | | |
| | | |
| Other | (3) | | | 10 | |
| Net cash provided by (used in) financing activities | (684) | | | (1,417) | |
| Effect of exchange rate changes on cash, cash equivalents and restricted cash | (4) | | | (9) | |
| Net change in cash, cash equivalents and restricted cash | (44) | | | (723) | |
| Cash, cash equivalents and restricted cash at beginning of period | 2,944 | | | 5,093 | |
| Cash, cash equivalents and restricted cash at end of period | $ | 2,900 | | | $ | 4,370 | |
| | | |
| Reconciliation of cash, cash equivalents and restricted cash: | | | |
| Cash and cash equivalents | $ | 2,829 | | | $ | 4,307 | |
| Restricted cash included in Other current assets | 1 | | | — | |
| Restricted cash included in Other non-current assets | 70 | | | 63 | |
| Total cash, cash equivalents and restricted cash | $ | 2,900 | | | $ | 4,370 | |
The accompanying notes are an integral part of the Condensed Consolidated Financial Statements.
NEWMONT CORPORATION
CONDENSED CONSOLIDATED STATEMENTSTATEMENTS OF CHANGES IN EQUITYCASH FLOWS
(unaudited, in millions)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Common Stock | | Treasury Stock | | Additional
Paid-In
Capital | | Accumulated
Other
Comprehensive
Income (Loss) | | Retained
Earnings
(Accumulated
Deficit) | | Noncontrolling
Interests | | Total
Equity |
| Shares | | Amount | | Shares | | Amount | | | | | |
| Balance at December 31, 2022 | 799 | | | $ | 1,279 | | | (6) | | | $ | (239) | | | $ | 17,369 | | | $ | 29 | | | $ | 916 | | | $ | 179 | | | $ | 19,533 | |
| Net income (loss) | — | | | — | | | — | | | — | | | — | | | — | | | 351 | | | 12 | | | 363 | |
| Other comprehensive income (loss) | — | | | — | | | — | | | — | | | — | | | (6) | | | — | | | — | | | (6) | |
Dividends declared (1) | — | | | — | | | — | | | — | | | — | | | — | | | (319) | | | — | | | (319) | |
| Distributions declared to noncontrolling interests | — | | | — | | | — | | | — | | | — | | | — | | | — | | | (40) | | | (40) | |
| Cash calls requested from noncontrolling interests | — | | | — | | | — | | | — | | | — | | | — | | | — | | | 31 | | | 31 | |
| | | | | | | | | | | | | | | | | |
| Withholding of employee taxes related to stock-based compensation | — | | | — | | | (1) | | | (22) | | | — | | | — | | | — | | | — | | | (22) | |
| | | | | | | | | | | | | | | | | |
| Stock-based awards and related share issuances | 1 | | | 2 | | | — | | | — | | | 17 | | | — | | | — | | | — | | | 19 | |
| Balance at March 31, 2023 | 800 | | | $ | 1,281 | | | (7) | | | $ | (261) | | | $ | 17,386 | | | $ | 23 | | | $ | 948 | | | $ | 182 | | | $ | 19,559 | |
| Net income (loss) | — | | | — | | | — | | | — | | | — | | | — | | | 155 | | | — | | | 155 | |
| Other comprehensive income (loss) | — | | | — | | | — | | | — | | | — | | | (10) | | | — | | | — | | | (10) | |
Dividends declared (1) | — | | | — | | | — | | | — | | | — | | | — | | | (318) | | | — | | | (318) | |
| Distributions declared to noncontrolling interests | — | | | — | | | — | | | — | | | — | | | — | | | — | | | (26) | | | (26) | |
| Cash calls requested from noncontrolling interests | — | | | — | | | — | | | — | | | — | | | — | | | — | | | 34 | | | 34 | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Stock-based awards and related share issuances | — | | | — | | | — | | | — | | | 21 | | | — | | | — | | | — | | | 21 | |
| Balance at June 30, 2023 | 800 | | | $ | 1,281 | | | (7) | | | $ | (261) | | | $ | 17,407 | | | $ | 13 | | | $ | 785 | | | $ | 190 | | | $ | 19,415 | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | |
| Three Months Ended
March 31, |
| 2024 | | 2023 |
| Operating activities: | | | |
| Net income (loss) | $ | 179 | | | $ | 363 | |
| Non-cash adjustments: | | | |
| Depreciation and amortization | 654 | | | 461 | |
| Loss on assets held for sale (Note 5) | 485 | | | — | |
| Net (income) loss from discontinued operations | (4) | | | (12) | |
| Reclamation and remediation | 94 | | | 61 | |
| | | |
| Deferred income taxes | 53 | | | 15 | |
| Change in fair value of investments (Note 9) | (31) | | | (41) | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| Other non-cash adjustments | 12 | | | (4) | |
| Net change in operating assets and liabilities (Note 19) | (666) | | | (362) | |
| | | |
| | | |
| Net cash provided by (used in) operating activities | 776 | | | 481 | |
| | | |
| Investing activities: | | | |
| Additions to property, plant and mine development | (850) | | | (526) | |
| Proceeds from asset and investment sales | 35 | | | 181 | |
| Return of investment from equity method investees | 25 | | | — | |
| Purchases of investments | (23) | | | (525) | |
| Contributions to equity method investees | (15) | | | (41) | |
| Proceeds from maturities of investments | — | | | 557 | |
| Other | 30 | | | 12 | |
| | | |
| | | |
| Net cash provided by (used in) investing activities | (798) | | | (342) | |
| | | |
| Financing activities: | | | |
| Proceeds from issuance of debt, net | 3,476 | | | — | |
| Repayment of debt | (3,423) | | | — | |
| Dividends paid to common stockholders | (288) | | | (318) | |
| Distributions to noncontrolling interests | (41) | | | (34) | |
| Funding from noncontrolling interests | 22 | | | 41 | |
| Payments on lease and other financing obligations | (18) | | | (16) | |
| Payments for withholding of employee taxes related to stock-based compensation | (10) | | | (22) | |
| | | |
| | | |
| Other | (17) | | | (1) | |
| Net cash provided by (used in) financing activities | (299) | | | (350) | |
| Effect of exchange rate changes on cash, cash equivalents and restricted cash | (3) | | | (8) | |
| Net change in cash, cash equivalents and restricted cash, including cash and restricted cash reclassified to assets held for sale | (324) | | | (219) | |
Less: cash and restricted cash reclassified to assets held for sale (1) | (395) | | | — | |
| Net change in cash, cash equivalents and restricted cash | (719) | | | (219) | |
| Cash, cash equivalents and restricted cash at beginning of period | 3,100 | | | 2,944 | |
| Cash, cash equivalents and restricted cash at end of period | $ | 2,381 | | | $ | 2,725 | |
| | | |
| Reconciliation of cash, cash equivalents and restricted cash: | | | |
| Cash and cash equivalents | $ | 2,336 | | | $ | 2,657 | |
| Restricted cash included in other current assets | 6 | | | 1 | |
| Restricted cash included in other non-current assets | 39 | | | 67 | |
| Total cash, cash equivalents and restricted cash | $ | 2,381 | | | $ | 2,725 | |
_______________________________________________________(1)During the first quarter of 2024, certain non-core assets were determined to meet the criteria for assets held for sale. As a result, the related assets and liabilities, including $342 of Cash dividends paid per common shareand cash equivalents and $53 of restricted cash, included in Other current assets and Other non-current assets, were $0.40reclassified to Current assets held for sale and $0.80Current liabilities held for the three and six months ended June 30, 2023,sale, respectively. Refer to Note 5 for additional information.
The accompanying notes are an integral part of the Condensed Consolidated Financial Statements.
NEWMONT CORPORATION
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
(unaudited, in millions)
| | Common Stock | | Treasury Stock | | Additional
Paid-In
Capital | | Accumulated
Other
Comprehensive
Income (Loss) | | Retained
Earnings
(Accumulated
Deficit) | | Noncontrolling
Interests | | Total
Equity | | Contingently
Redeemable
Noncontrolling
Interest |
| Shares | | Amount | | Shares | | Amount | |
| Balance at December 31, 2021 | 797 | | | $ | 1,276 | | | (5) | | | $ | (200) | | | $ | 17,981 | | | $ | (133) | | | $ | 3,098 | | | $ | (209) | | | $ | 21,813 | | | $ | 48 | |
| Net income (loss) | — | | | — | | | — | | | — | | | — | | | — | | | 448 | | | 21 | | | 469 | | | — | |
| Other comprehensive income (loss) | — | | | — | | | — | | | — | | | — | | | 121 | | | — | | | — | | | 121 | | | — | |
Dividends declared (1) | — | | | — | | | — | | | — | | | — | | | — | | | (439) | | | — | | | (439) | | | — | |
| Distributions declared to noncontrolling interests | — | | | — | | | — | | | — | | | — | | | — | | | — | | | (59) | | | (59) | | | — | |
| Cash calls requested from noncontrolling interests | — | | | — | | | — | | | — | | | — | | | — | | | — | | | 30 | | | 30 | | | — | |
| Withholding of employee taxes related to stock-based compensation | — | | | — | | | (1) | | | (36) | | | — | | | — | | | — | | | — | | | (36) | | | —�� | |
| Acquisition of noncontrolling interests (Note 1) | — | | | — | | | — | | | — | | | (699) | | | — | | | — | | | 399 | | | (300) | | | — | |
| Reclassification of contingently redeemable noncontrolling interests (Note 1) | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | (48) | |
| Stock options exercised | — | | | — | | | — | | | — | | | 14 | | | — | | | — | | | — | | | 14 | | | — | |
| Stock-based awards and related share issuances | 2 | | | 2 | | | — | | | — | | | 16 | | | — | | | — | | | — | | | 18 | | | — | |
| Balance at March 31, 2022 | 799 | | | $ | 1,278 | | | (6) | | | $ | (236) | | | $ | 17,312 | | | $ | (12) | | | $ | 3,107 | | | $ | 182 | | | $ | 21,631 | | | $ | — | |
| Common Stock | | | Common Stock | | Treasury Stock | | Additional
Paid-In
Capital | | Accumulated
Other
Comprehensive
Income (Loss) | | Retained
Earnings
(Accumulated
Deficit) | | Noncontrolling
Interests | | Total
Equity |
| Shares | |
| Balance at December 31, 2023 | |
| Balance at December 31, 2023 | |
| Balance at December 31, 2023 | |
| Net income (loss) | Net income (loss) | — | | | — | | | — | | | — | | | — | | | — | | | 387 | | | 13 | | | 400 | | | — | |
| Other comprehensive income (loss) | Other comprehensive income (loss) | — | | | — | | | — | | | — | | | — | | | 1 | | | — | | | — | | | 1 | | | — | |
Dividends declared (1) | Dividends declared (1) | — | | | — | | | — | | | — | | | — | | | — | | | (438) | | | — | | | (438) | | | — | |
| Distributions declared to noncontrolling interests | Distributions declared to noncontrolling interests | — | | | — | | | — | | | — | | | — | | | — | | | — | | | (45) | | | (45) | | | — | |
| Cash calls requested from noncontrolling interests | Cash calls requested from noncontrolling interests | — | | | — | | | — | | | — | | | — | | | — | | | — | | | 28 | | | 28 | | | — | |
| | Withholding of employee taxes related to stock-based compensation | |
| Withholding of employee taxes related to stock-based compensation | |
| Withholding of employee taxes related to stock-based compensation | |
| | Stock-based awards and related share issuances | Stock-based awards and related share issuances | — | | | — | | | — | | | — | | | 22 | | | — | | | — | | | — | | | 22 | | | — | |
| Balance at June 30, 2022 | 799 | | | $ | 1,278 | | | (6) | | | $ | (236) | | | $ | 17,334 | | | $ | (11) | | | $ | 3,056 | | | $ | 178 | | | $ | 21,599 | | | $ | — | |
| Stock-based awards and related share issuances | |
| Stock-based awards and related share issuances | |
| Balance at March 31, 2024 | |
| |
(1)Cash dividends paid per common share were $0.55 and $1.10$0.25 for the three and six months ended June 30, 2022.March 31, 2024.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Common Stock | | Treasury Stock | | Additional
Paid-In
Capital | | Accumulated
Other
Comprehensive
Income (Loss) | | Retained
Earnings
(Accumulated
Deficit) | | Noncontrolling
Interests | | Total
Equity |
| Shares | | Amount | | Shares | | Amount | | | | | |
| Balance at December 31, 2022 | 799 | | | $ | 1,279 | | | (6) | | | $ | (239) | | | $ | 17,369 | | | $ | 29 | | | $ | 916 | | | $ | 179 | | | $ | 19,533 | |
| Net income (loss) | — | | | — | | | — | | | — | | | — | | | — | | | 351 | | | 12 | | | 363 | |
| Other comprehensive income (loss) | — | | | — | | | — | | | — | | | — | | | (6) | | | — | | | — | | | (6) | |
Dividends declared (1) | — | | | — | | | — | | | — | | | — | | | — | | | (319) | | | — | | | (319) | |
| Distributions declared to noncontrolling interests | — | | | — | | | — | | | — | | | — | | | — | | | — | | | (40) | | | (40) | |
| Cash calls requested from noncontrolling interests | — | | | — | | | — | | | — | | | — | | | — | | | — | | | 31 | | | 31 | |
| Withholding of employee taxes related to stock-based compensation | — | | | — | | | (1) | | | (22) | | | — | | | — | | | — | | | — | | | (22) | |
| | | | | | | | | | | | | | | | | |
| Stock-based awards and related share issuances | 1 | | | 2 | | | — | | | — | | | 17 | | | — | | | — | | | — | | | 19 | |
| Balance at March 31, 2023 | 800 | | | $ | 1,281 | | | (7) | | | $ | (261) | | | $ | 17,386 | | | $ | 23 | | | $ | 948 | | | $ | 182 | | | $ | 19,559 | |
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____________________________(1)Cash dividends paid per common share were $0.40 for the three months ended March 31, 2023.
The accompanying notes are an integral part of the Condensed Consolidated Financial Statements.
NEWMONT CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(unaudited, dollars in millions, except per share, per ounce and per pound amounts)
NOTE 1 BASIS OF PRESENTATION
The interim Condensed Consolidated Financial Statements (“interim statements”) of Newmont Corporation, a Delaware corporation and its subsidiaries (collectively, “Newmont,” “we,” “us,” or the “Company”) are unaudited. In the opinion of management, all normal recurring adjustments and disclosures necessary for a fair presentation of these interim statements have been included. The results reported in these interim statements are not necessarily indicative of the results that may be reported for the entire year. These interim statements should be read in conjunction with Newmont’s Consolidated Financial Statements for the year ended December 31, 20222023 filed on February 23, 202329, 2024 on Form 10-K. The year-end balance sheet data was derived from the audited financial statements and, in accordance with the instructions to Form 10-Q, certain information and footnote disclosures required by GAAP have been condensed or omitted.
Newcrest transactionTransaction
On May 14,November 6, 2023, the Company entered intocompleted its business combination transaction with Newcrest Mining Limited, a binding Scheme Implementation Deed (the “Transaction Agreement”public Australian mining company limited by shares ("Newcrest") to acquire, whereby Newmont, through Newmont Overseas Holdings Pty Ltd, an Australian proprietary company limited by shares (“Newmont Sub”), acquired all of the issued and outstanding ordinary shares of Newcrest Mining Limited ("Newcrest") in a fully stock transaction by wayfor total non-cash consideration of $13,549. Newcrest became a direct wholly owned subsidiary of Newmont Sub and an Australian court-approved Schemeindirect wholly owned subsidiary of Arrangement (the “Scheme”, and suchNewmont (such acquisition, the “Proposed Newcrest Transaction”“Newcrest transaction”). Under the terms of the Transaction Agreement, Newcrest shareholders will receive 0.400 of a share of Newmont’s common stock for each Newcrest common share and a special dividend of up to $1.10 per share,The combined company continues to be paid by Newcrest immediately priortraded on the New York Stock Exchange under the ticker NEM. The combined company is also listed on the Toronto Stock Exchange under the ticker NGT, on the Australian Securities Exchange under the ticker NEM, and on the Papua New Guinea Securities Exchange under the ticker NEM. Refer to the consummation of the Proposed Newcrest Transaction. The Proposed Newcrest Transaction, which is subject to approval by both Newmont stockholders and Newcrest shareholders and other customary conditions and regulatory approvals, is expected to close in the fourth quarter of 2023.Note 3 for further information.
Noncontrolling interestsInterests
Net loss (income) attributable to noncontrolling interest is comprised of income primarilyof $9 and $12 for the three months ended March 31, 2024 and 2023, respectively, related to Suriname Gold project C.V. (“Merian”), of $— and $13 for the three months ended June 30, 2023 and 2022, respectively, and $12 and $34 for the six months ended June 30, 2023 and 2022, respectively.. Newmont consolidates Merian through its wholly-owned subsidiary, Newmont Suriname LLC., in its Condensed Consolidated Financial Statements as the primary beneficiary of Merian, which is a variable interest entity.
Yanacocha transaction
In February 2022, the Company completed the acquisition of Compañia de Minas Buenaventura S.A.A. (“Buenaventura”) 43.65% noncontrolling interest in Yanacocha for $300 cash consideration, certain royalties on any production from other future potential projects, and contingent payments of up to $100 tied to higher metal prices, achieving commercial production at the Yanacocha Sulfides project and resolution on the outstanding Yanacocha tax dispute. Concurrently, the Company sold its 46.94% ownership interest in Minera La Zanja S.R.L. ("La Zanja") for a $45 loss on sale of its equity interest, included in Other income (loss), net. Additionally, in June 2022, the Company acquired the remaining 5% interest held by Sumitomo in exchange for cash consideration of $48, resulting in the Company obtaining 100% ownership interest in Yanacocha.
NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Risks and Uncertainties
As a global mining company, the Company’s revenue, profitability and future rate of growth are substantially dependent on prevailing metal prices, primarily for gold, but also for copper, silver, lead, and zinc. Historically, the commodity markets have been very volatile, and there can be no assurance that commodity prices will not be subject to wide fluctuations in the future. A substantial or extended decline in commodity prices could have a material adverse effect on the Company’s financial position, results of operations, cash flows, access to capital and on the quantities of reserves that the Company can economically produce. The carrying value of the Company’s Property, plant and mine development, net;Inventories;Stockpiles and ore on leach pads; Investments; certain Derivative assets; Deferred income tax assets; and Goodwill are particularly sensitive to the outlook for commodity prices. A decline in the Company’s price outlook from current levels could result in material impairment charges related to these assets.
Our global operations expose us to risks associated with public health crises, including epidemics and pandemics such as COVID-19, and geopolitical and macroeconomic pressures such as the Russian invasion of Ukraine. The Company continues to experience the impacts from recent geopolitical and macroeconomic pressures. With the resulting volatile environment, the Company continues to monitor inflationary conditions, the effects of certain countermeasures taken by central banks, and the potential for further supply chain disruptions relating to the Russian invasion of Ukraine and the COVID-19 pandemic, as well as an uncertain and evolving labor market. Additionally, in early 2023 the banking industry experienced adversity including bank failures, take-overs, and entrance into receivership or insolvency, amongst other events. While the Company has not experienced any impacts from these recent events, further instability in the banking system could put the liquidity of Newmont and third parties with which we do business at risk.
The Company maintains strict adherence to its cash investment policies which focus on highly rated investments and capital preservation mechanisms to achieve the Company’s strategic objectives.
Thesefollowing factors could have further potential short- and, possibly, long-term material adverse impacts on the Company including, but not limited to, volatility in commodity prices and the prices for gold and other metals, changes in the equity and debt markets or country specific factors adversely impacting discount rates, significant cost inflation impacts on production, capital and asset retirement costs, logistical challenges, workforce interruptions and financial market disruptions, energy market disruptions, as well as potential impacts to estimated costs and timing of projects.
In June 2023, the Company announced the deferral of the full-funds investment decision for the Yanacocha Sulfides project in Peru for at least two years to the second half of 2026. The delay of the Yanacocha Sulfides project is intended to focus funds on current operations and other capital commitments while management assesses execution and project options, up to and including transitioning Yanacocha operations into full closure. To the extent that assessment determines that the project is no longer sufficiently profitable or economically feasible under the Company’s internal requirements, it would result in negative modifications to our proven and probable reserves. Additionally, should the Company ultimately decide to forgo the development of Yanacocha Sulfides, the current
NEWMONT CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(unaudited, dollars in millions, except per share, per ounce and per pound amounts)
carrying value of the assets under construction and other long-lived assets of the Yanacocha operations could become impaired and the timing of certain closure activities would be accelerated. As of June 30, 2023, the Yanacocha operations have total long-lived assets of approximately $1,110, inclusive of approximately $744 of assets under construction related to Yanacocha Sulfides. Refer also to our risk factors under the titles "Estimates relating to projects and mine plans of existing operations are uncertain and we may incur higher costs and lower economic returns than estimated” and "Our long-lived assets and goodwill could become impaired, which could have a material non-cash adverse effect on our results of operations” included in Part I of the Company's Annual Report on Form 10-K for the year ended December 31, 2022 filed with the SEC on February 23, 2023, for further information.
Additionally, the Company continues to hold the Conga project in Peru, which we do not currently anticipate developing in the next ten years as we continue to assess Yanacocha Sulfides; accordingly, the Conga project remains in care and maintenance. Should we be unable to develop the Conga project or conclude that future development is not in the best interest of the business, we may consider other alternatives for the project, which may result in a future impairment charge for the remaining assets. The total assets at Conga were $897 at June 30, 2023.
On June 7, 2023, the National Union of Mine and Metal Workers of the Mexican Republic (the "Union") notified the Company of a strike action. In response to the strike notice, the Company has suspended operations at Peñasquito. As of the date of this report filing, operations have not resumed and the Company is in ongoing discussions with the Union.
The Company will continue to monitor and evaluate the potential impacts of the current and ongoing inflationary pressures and supply chain disruptions. Depending on the duration and extent of ongoing global developments and inflationary conditions, these factors could materially impact the Company’s results of operations, cash flows and financial condition and could result in material impairment charges to the Company’s Property, plant and mine development, net; Inventories; Stockpiles and ore on leach pads; Investments; Deferred income tax assets;and Goodwill.
Refer to Note 1820 below for further information on risks and uncertainties that could have a potential impact on the Company as well as Note 2 of the Consolidated Financial Statements included in Part II of the Company's Annual Report on Form 10-K for the year ended December 31, 20222023 filed with the SEC on February 23, 2023.29, 2024.
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the accounting for and recognition and disclosure of assets, liabilities, equity, revenues and expenses. The Company must make these estimates and assumptions because certain information used is dependent on future events, cannot be calculated with a high degree of precision from data available or simply cannot be readily calculated based on generally accepted methodologies. Actual results could differ from these estimates.
NEWMONT CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(unaudited, dollars in millions, except per share, per ounce and per pound amounts)
Assets Held for Sale
We classify long-lived assets, or disposal groups comprising of assets and liabilities, as held for sale in the period in which the following six criteria are met, (i) management, having the authority to approve the action, commits to a plan to sell the property; (ii) the property is available for immediate sale in its present condition, subject only to terms that are usual and customary; (iii) an active program to locate a buyer and other actions required to complete the plan to sell have been initiated; (iv) the sale of the property is probable and is expected to be completed within one year; (v) the property is being actively marketed for sale at a price that is reasonable in relation to its current fair value; and (vi) actions necessary to complete the plan of sale indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn.
The Company ceases depreciation and amortization on long-lived assets (or disposal groups) classified as held for sale, and measures them at the lower of carrying value or estimated fair value less cost to sell.
Reclassifications
Certain amounts and disclosures in prior years have been reclassified to conform to the current year presentation.
Recently Adopted Accounting Pronouncements and Securities and Exchange Commission Rules
Inflation Reduction Act
In August 2022, the U.S. government enacted the Inflation Reduction Act of 2022 (the "IRA") into law. The IRA introduced an excise tax on stock repurchases of 1% of the fair market value of stock repurchases net of stock issued during the tax year and a corporate alternative minimum tax (the "Corporate AMT") of 15% on the adjusted financial statement income ("AFSI") of corporations with average AFSI exceeding $1 billion over a three-year period. The excise tax on stock repurchases is effective on net stock repurchases made after December 31, 2022 and the Corporate AMT is effective for tax periods beginning in fiscal year 2023. While waiting on pending Department of Treasury regulatory guidance, the Company is continuing to monitor developments. Based upon information known to date, the IRA had no material impact on our current consolidated financial statements and is not expected to have a material impact on future consolidated financial statements, disclosures, or cash flows.
Recently Issued Accounting Pronouncements and Federal Laws
Effects of Reference Rate Reform
In March 2020, ASU No. 2020-04 was issued which provides optional guidance for a limited period of time to ease the potential burden on accounting for contract modifications caused by reference rate reform. In January 2021, ASU No. 2021-01 was issued which broadened the scope of ASU No. 2020-04 to include certain derivative instruments. In December 2022, ASU No. 2022-06 was issued which deferred the sunset date of ASU No. 2020-04. The guidance is effective for all entities as of March 12, 2020 through December 31, 2024. The guidance may be adopted over time as reference rate reform activities occur and should be applied on a prospective basis. The Company is inhas completed its review of key contracts and does not expect the process of reviewing keyguidance to have a material impact to the consolidated financial statements or disclosures. The Company will continue to review new contracts to identify any contracts that referencereferences to the LIBOR and to implement adequate fallback provisions if not already implemented to mitigate the risks or impacts from the transition. No material
Recently Issued Accounting Pronouncements and Securities and Exchange Commission Rules
SEC Final Climate Rule
In March 2024, the SEC issued a final rule that requires registrants to disclose climate-related information in their annual reports and in registration statements. In April 2024, the SEC chose to stay the newly adopted rulemaking pending judicial review of related consolidated Eighth Circuit petitions. If the stay is lifted, certain disclosures may be required in annual reports for the year ending December 31, 2025, filed in 2026. The Company is currently evaluating the impacts of the rules on its consolidated financial statements.
Improvement to Income Tax Disclosures
In December 2023, ASU 2023-09 was issued which requires disaggregated information about the effective tax rate reconciliation and additional information on taxes paid that meet a qualitative threshold. The new guidance is effective for annual reporting periods beginning after December 15, 2024, with early adoption permitted. The Company is currently evaluating the impacts of the guidance on its consolidated financial statements.
Segments Reporting
In November 2023, ASU 2023-07 was issued which improves disclosures about a public entity’s reportable segments and addresses requests from investors and other allocators of capital for additional, more detailed information about a reportable segment’s expenses. The ASU applies to all public entities that are required to report segment information in accordance with ASC 280 and is effective starting in annual periods beginning after December 15, 2023. The adoption is not expected to have a material impact on the Company's consolidated financial statements or disclosures.
NOTE 3 BUSINESS ACQUISITION
On November 6, 2023 (the “acquisition date”), Newmont completed its business combination transaction with Newcrest, a public Australian mining company limited by shares, whereby Newmont, through Newmont Sub, acquired all of the ordinary shares of Newcrest, pursuant to a court-approved scheme of arrangement under Part 5.1 of the Australian Corporations Act 2001 (Cth) between Newcrest and its shareholders, as contemplated by a scheme implementation deed, dated as of May 15, 2023, by and among Newmont, Newmont Sub and Newcrest, as amended from time to time. Upon implementation, Newmont completed the business acquisition of Newcrest, in which Newmont was the acquirer and Newcrest became a direct wholly owned subsidiary of Newmont Sub and an indirect wholly owned subsidiary of Newmont (such acquisition, the “Newcrest transaction”). The acquisition of Newcrest increased the Company’s gold and other metal reserves and expanded the operating jurisdictions.
NEWMONT CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(unaudited, dollars in millions, except per share, per ounce and per pound amounts)
The acquisition date fair value of the consideration transferred consisted of the following:
| | | | | | | | | | | | | | | | | | | | |
| (in millions, except share and per share data) | | Shares | | Per Share | | Purchase Consideration |
| Stock Consideration | | | | | | |
| Shares of Newmont exchanged for Newcrest outstanding ordinary shares | | 357,691,627 | | | $ | 37.88 | | | $ | 13,549 | |
| | | | | | |
| Total Purchase Price | | | | | | $ | 13,549 | |
The Company retained an independent appraiser to determine the fair value of assets acquired and liabilities assumed. In accordance with the acquisition method of accounting, the purchase price of Newcrest has been allocated to the acquired assets and assumed liabilities based on their estimated acquisition date fair values. The fair value estimates were based on income, market and cost valuation methods. The excess of the total consideration over the estimated fair value of the amounts initially assigned to the identifiable assets acquired and liabilities assumed has been recorded as goodwill, which is not deductible for income tax purposes. The goodwill balance is mainly attributable to: (i) the acquisition of existing operating mines with access to an assembled workforce that cannot be duplicated at the same costs by new entrants; (ii) operating synergies anticipated from the integration of the operations of Newmont and Newcrest; and (iii) the application of Newmont’s Full Potential program and potential strategic and financial benefits that include the increase in reserve base and opportunities to identify additional mineralization through exploration activities.
As of March 31, 2024, the Company had not yet fully completed the analysis to assign fair values to all assets acquired and liabilities assumed, and therefore the purchase price allocation for Newcrest is preliminary. At March 31, 2024, remaining items to finalize include the fair value of materials and supplies inventories, property plant and mine development, goodwill, reclamation and remediation liabilities, employee-related benefits, unrecognized tax benefits, and deferred income tax assets and liabilities. The preliminary purchase price allocation will be subject to further refinement as the Company continues to implement Newmont accounting policies and refine its estimates and assumptions based on information available at the acquisition date. These refinements may result in material changes to the estimated fair value of assets acquired and liabilities assumed. The purchase price allocation adjustments can be made throughout the end of Newmont’s measurement period, which is not to exceed one year from the acquisition date.
NEWMONT CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(unaudited, dollars in millions, except per share, per ounce and per pound amounts)
The following table summarizes the preliminary purchase price allocation for the Newcrest transaction as of March 31, 2024:
| | | | | |
| ASSETS | March 31, 2024 |
| Cash and cash equivalents | $ | 668 | |
| Trade receivables | 212 | |
| Inventories | 722 | |
Stockpiles and ore on leach pads | 137 | |
| Derivative assets | 42 | |
| Other current assets | 194 | |
| Current assets | 1,975 | |
Property, plant and mine development, net (1) | 13,509 | |
Investments | 990 | |
Stockpiles and ore on leach pads | 131 | |
Deferred income tax assets (2) | 179 | |
Goodwill (3) | 2,535 | |
| Derivative assets | 362 | |
| Other non-current assets | 93 | |
| Total assets | 19,774 | |
| |
| LIABILITIES | |
| Accounts payable | 344 | |
| Employee-related benefits | 143 | |
| |
| Lease and other financing obligations | 16 | |
| Debt | 1,923 | |
| Other current liabilities | 336 | |
| Current liabilities | 2,762 | |
Debt | 1,373 | |
| Lease and other financing obligations | 35 | |
| Reclamation and remediation liabilities | 393 | |
Deferred income tax liabilities (2) | 1,429 | |
| Employee-related benefits | 222 | |
| Other non-current liabilities | 11 | |
| Total liabilities | 6,225 | |
| |
| Net assets acquired | $ | 13,549 | |
____________________________
(1)During the first quarter of 2024, measurement period adjustments of $326 increased Property, plant and mine development, net, from refinements to the preliminary valuation of the Canadian assets.
(2)Deferred income tax assets and liabilities represent the future tax benefit or future tax expense associated with the differences between the preliminary fair value allocated to assets (excluding goodwill) and liabilities and a tax basis increase to the preliminary fair value of the assets acquired in Australia and the historical carryover tax basis of assets and liabilities in all other jurisdictions. No deferred tax liability is recognized for the basis difference inherent in the preliminary fair value allocated to goodwill. Current period adjustments resulted in deferred income tax assets decreasing by $10and deferred income tax liabilities increasing by $98 during the quarter.
(3)Preliminary goodwill is attributable to reportable segments as follows: $1,089 to Brucejack; $404 to Red Chris; $427 to Cadia; and $615 to Lihir. During the first quarter of 2024, the Company identified and recorded measurement period adjustments to the Company's preliminary purchase price allocation, as a result of additional analysis performed. These adjustments resulted in a reduction in Goodwill of $209.
Sales and Net income (loss) attributable to Newmont stockholders in the Condensed Consolidated Statement of Operations includes Newcrest revenue of $992 and Newcrest net income (loss) of $224 for the three months ended March 31, 2024.
Pro Forma Financial Information
The following unaudited pro forma financial information presents consolidated results assuming the Newcrest transaction occurred on January 1, 2022.
| | | | | |
| Three Months Ended
March 31, 2023 |
| Sales | $ | 3,862 | |
| Net income (loss) attributable to Newmont stockholders | $ | 593 | |
NEWMONT CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(unaudited, dollars in millions, except per share, per ounce and per pound amounts)
NOTE 34 SEGMENT INFORMATION
The Company regularly reviews its segment reporting for alignment with its strategic goals and operational structure as well as for evaluation of business performance and allocation of resources by Newmont’s Chief Operating Decision Maker ("CODM"). In January 2023, Newmont reassessed and revised its operating strategies and the accountabilitiesThe reportable segments of the senior leadership team in light of the continuing volatile and uncertain market conditions. Following these changes, the Company reevaluated its segments to reflect certain changes in the financial information regularly reviewed by the CODM. As a result, the Company determined that its reportable segments werecomprise each of its 1217 mining operations that it manages, which includes its 70.0% proportionate interest in Red Chris, and its 38.5% proportionate interest in Nevada Gold Mines ("NGM"), which is accounted for using the proportionate consolidation method. Segment results for the prior periods have been recast to reflect the change in reportable segments.it does not directly manage.
In the following tables, Income (loss) before income and mining tax and other items from reportable segments does not reflect general corporate expenses, interest (except project-specific interest) or income and mining taxes. Intercompany revenue and expense amounts have been eliminated within each segment in order to report on the basis that management uses internally for evaluating segment performance. The Company's business activities and operating segments that are not considered reportable, including all equity method investments, are reported in Corporate and Other, which has been provided for reconciliation purposes.
The financial information relating to the Company’s segments is as follows:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Sales | | Costs Applicable to Sales | | Depreciation and Amortization | | Advanced Projects, Research and Development and Exploration | | Income (Loss) before Income and Mining Tax and Other Items | | Capital Expenditures (1) |
| Three Months Ended June 30, 2023 | | | | | | | | | | | |
| CC&V | $ | 82 | | | $ | 49 | | | $ | 6 | | | $ | 3 | | | $ | 21 | | | $ | 13 | |
| Musselwhite | 80 | | | 55 | | | 18 | | | 4 | | | (2) | | | 31 | |
| Porcupine | 125 | | | 77 | | | 27 | | | 6 | | | 12 | | | 36 | |
Éléonore (2) | 100 | | | 74 | | | 24 | | | 2 | | | (2) | | | 31 | |
Peñasquito: (3) | | | | | | | | | | | |
| Gold | 95 | | | 40 | | | 15 | | | | | | | |
| Silver | 124 | | | 95 | | | 34 | | | | | | | |
| Lead | 32 | | | 33 | | | 12 | | | | | | | |
| Zinc | 65 | | | 90 | | | 30 | | | | | | | |
| Total Peñasquito | 316 | | | 258 | | | 91 | | | 3 | | | (57) | | | 37 | |
| Merian | 104 | | | 80 | | | 15 | | | 5 | | | 3 | | | 21 | |
| Cerro Negro | 100 | | | 83 | | | 34 | | | 1 | | | (31) | | | 39 | |
| Yanacocha | 132 | | | 79 | | | 22 | | | 6 | | | (9) | | | 65 | |
| Boddington: | | | | | | | | | | | |
| Gold | 394 | | | 159 | | | 27 | | | | | | | |
| Copper | 82 | | | 48 | | | 9 | | | | | | | |
| Total Boddington | 476 | | | 207 | | | 36 | | | 1 | | | 226 | | | 37 | |
| Tanami | 244 | | | 102 | | | 31 | | | 9 | | | 100 | | | 115 | |
| Ahafo | 263 | | | 121 | | | 42 | | | 10 | | | 91 | | | 77 | |
| Akyem | 98 | | | 54 | | | 26 | | | 5 | | | 12 | | | 12 | |
| NGM | 563 | | | 304 | | | 105 | | | 10 | | | 140 | | | 123 | |
| Corporate and Other | — | | | — | | | 9 | | | 45 | | | (204) | | | 21 | |
| Consolidated | $ | 2,683 | | | $ | 1,543 | | | $ | 486 | | | $ | 110 | | | $ | 300 | | | $ | 658 | |
____________________________
(1)Includes an increase in prepaid capital expenditures and accrued capital expenditures of $42. Consolidated capital expenditures on a cash basis were $616.
(2)In June 2023, the Company evacuated Éléonore and temporarily shutdown the operation in response to the ongoing wildfires in Canada. During this period, the Company continued to incur costs and reported $6 and $2 in Cost applicable to sales and Depreciation and amortization, respectively. The Company expects operations to fully resume during the third quarter of 2023.
(3)On June 7, 2023, the Company suspended its operations at Peñasquito due to the Union strike as discussed in Note 2. During this period, the Company continued to incur costs and reported $23 and $15 in Cost applicable to sales and Depreciation and amortization, respectively.
NEWMONT CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(unaudited, dollars in millions, except per share, per ounce and per pound amounts)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Sales | | Costs Applicable to Sales | | Depreciation and Amortization | | Advanced Projects, Research and Development and Exploration | | Income (Loss) before Income and Mining Tax and Other Items | | Capital Expenditures (1) |
| Three Months Ended June 30, 2022 | | | | | | | | | | | |
| CC&V | $ | 85 | | | $ | 49 | | | $ | 16 | | | $ | 3 | | | $ | 6 | | | $ | 14 | |
| Musselwhite | 73 | | | 53 | | | 20 | | | 2 | | | — | | | 12 | |
| Porcupine | 125 | | | 71 | | | 25 | | | 4 | | | 28 | | | 40 | |
| Éléonore | 87 | | | 71 | | | 27 | | | 1 | | | (13) | | | 13 | |
Peñasquito: (2) | | | | | | | | | | | |
| Gold | 230 | | | 127 | | | 34 | | | | | | | |
| Silver | 140 | | | 155 | | | 42 | | | | | | | |
| Lead | 28 | | | 29 | | | 8 | | | | | | | |
| Zinc | 92 | | | 94 | | | 22 | | | | | | | |
| Total Peñasquito | 490 | | | 405 | | | 106 | | | 6 | | | (44) | | | 48 | |
| Merian | 178 | | | 94 | | | 20 | | | 6 | | | 58 | | | 13 | |
| Cerro Negro | 145 | | | 71 | | | 42 | | | 4 | | | 15 | | | 32 | |
| Yanacocha | 128 | | | 73 | | | 21 | | | 5 | | | 6 | | | 90 | |
| Boddington: | | | | | | | | | | | |
| Gold | 429 | | | 181 | | | 33 | | | | | | | |
| Copper | 76 | | | 49 | | | 9 | | | | | | | |
| Total Boddington | 505 | | | 230 | | | 42 | | | 2 | | | 245 | | | 17 | |
| Tanami | 249 | | | 84 | | | 26 | | | 7 | | | 153 | | | 94 | |
| Ahafo | 253 | | | 129 | | | 42 | | | 7 | | | 75 | | | 78 | |
| Akyem | 203 | | | 76 | | | 33 | | | 4 | | | 89 | | | 8 | |
| NGM | 537 | | | 302 | | | 127 | | | 9 | | | 91 | | | 72 | |
| Corporate and Other | — | | | — | | | 12 | | | 47 | | | (301) | | | 6 | |
| Consolidated | $ | 3,058 | | | $ | 1,708 | | | $ | 559 | | | $ | 107 | | | $ | 408 | | | $ | 537 | |
____________________________
(1)Includes an increase in accrued capital expenditures of $18. Consolidated capital expenditures on a cash basis were $519.
(2)Costs applicable to sales includes amounts resulting from the profit-sharing agreement completed with the Peñasquito workforce during the second quarter of 2022. Under the agreement, the Company agreed to pay its workforce an uncapped profit-sharing bonus each year, based on the agreed upon terms. Additionally, the terms of the agreement are retroactively applied to profit-sharing related to 2021 site performance, resulting in $70 recorded within Costs applicable to sales in the second quarter of 2022. The amounts related to the 2021 profit-sharing were paid in the third quarter of 2022.
NEWMONT CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(unaudited, dollars in millions, except per share, per ounce and per pound amounts)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Sales | | Costs Applicable to Sales | | Depreciation and Amortization | | Advanced Projects, Research and Development and Exploration | | Income (Loss) before Income and Mining Tax and Other Items | | Capital Expenditures (1) |
| Six Months Ended June 30, 2023 | | | | | | | | | | | |
| CC&V | $ | 173 | | | $ | 100 | | | $ | 13 | | | $ | 6 | | | $ | 48 | | | $ | 23 | |
| Musselwhite | 163 | | | 113 | | | 37 | | | 5 | | | 4 | | | 45 | |
| Porcupine | 248 | | | 147 | | | 56 | | | 10 | | | 27 | | | 58 | |
Éléonore (2) | 229 | | | 149 | | | 51 | | | 3 | | | 24 | | | 45 | |
Peñasquito: (3) | | | | | | | | | | | |
| Gold | 205 | | | 107 | | | 35 | | | | | | | |
| Silver | 241 | | | 177 | | | 59 | | | | | | | |
| Lead | 64 | | | 55 | | | 19 | | | | | | | |
| Zinc | 182 | | | 176 | | | 54 | | | | | | | |
| Total Peñasquito | 692 | | | 515 | | | 167 | | | 6 | | | (35) | | | 72 | |
| Merian | 263 | | | 165 | | | 33 | | | 8 | | | 56 | | | 35 | |
| Cerro Negro | 216 | | | 153 | | | 65 | | | 3 | | | (24) | | | 74 | |
| Yanacocha | 232 | | | 135 | | | 38 | | | 9 | | | (9) | | | 128 | |
| Boddington: | | | | | | | | | | | |
| Gold | 775 | | | 326 | | | 55 | | | | | | | |
| Copper | 192 | | | 101 | | | 18 | | | | | | | |
| Total Boddington | 967 | | | 427 | | | 73 | | | 3 | | | 459 | | | 74 | |
| Tanami | 367 | | | 163 | | | 50 | | | 13 | | | 140 | | | 189 | |
| Ahafo | 512 | | | 251 | | | 81 | | | 16 | | | 162 | | | 167 | |
| Akyem | 246 | | | 117 | | | 55 | | | 8 | | | 61 | | | 22 | |
| NGM | 1,054 | | | 590 | | | 211 | | | 17 | | | 225 | | | 207 | |
| Corporate and Other | — | | | — | | | 17 | | | 86 | | | (299) | | | 27 | |
| Consolidated | $ | 5,362 | | | $ | 3,025 | | | $ | 947 | | | $ | 193 | | | $ | 839 | | | $ | 1,166 | |
____________________________
(1)Includes an increase in prepaid capital expenditures and accrued capital expenditures of $24. Consolidated capital expenditures on a cash basis were $1,142.
(2)In June 2023, the Company evacuated Éléonore and temporarily shutdown the operation in response to the ongoing wildfires in Canada. During this period, the Company continued to incur costs and reported $6 and $2 in Cost applicable to sales and Depreciation and amortization, respectively. The Company expects operations to fully resume during the third quarter of 2023.
(3)On June 7, 2023, the Company suspended its operations at Peñasquito due to the Union strike as discussed in Note 2. During this period, the Company continued to incur costs and reported $23 and $15 in Cost applicable to sales and Depreciation and amortization, respectively.
NEWMONT CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(unaudited, dollars in millions, except per share, per ounce and per pound amounts)
| | Sales | | Costs Applicable to Sales | | Depreciation and Amortization | | Advanced Projects, Research and Development and Exploration | | Income (Loss) before Income and Mining Tax and Other Items | | Capital Expenditures (1) |
| Six Months Ended June 30, 2022 | | | | | | | | | | | |
| CC&V | $ | 153 | | | $ | 101 | | | $ | 32 | | | $ | 4 | | | $ | 3 | | | $ | 18 | |
| Musselwhite | 133 | | | 96 | | | 36 | | | 3 | | | (3) | | | 18 | |
| Porcupine | 239 | | | 137 | | | 47 | | | 7 | | | 45 | | | 76 | |
| Éléonore | 181 | | | 133 | | | 56 | | | 1 | | | (14) | | | 23 | |
| Sales | | | Sales | | Costs Applicable to Sales | | Depreciation and Amortization | | Advanced Projects, Research and Development and Exploration | | Income (Loss) before Income and Mining Tax and Other Items | | Capital Expenditures (1) |
| Three Months Ended March 31, 2024 | |
Brucejack (2) | |
Brucejack (2) | |
Brucejack (2) | |
Red Chris (2) | |
| Gold | |
| Gold | |
| Gold | |
| Copper | |
| Copper | |
| Copper | |
| Total Red Chris | |
| Total Red Chris | |
| Total Red Chris | |
Peñasquito: (2) | Peñasquito: (2) | |
| Gold | Gold | 482 | | | 214 | | | 73 | | |
| Gold | |
| Gold | |
| Silver | |
| Silver | |
| Silver | Silver | 296 | | | 252 | | | 86 | | |
| Lead | Lead | 72 | | | 51 | | | 18 | | |
| Lead | |
| Lead | |
| Zinc | Zinc | 302 | | | 180 | | | 57 | | |
| Zinc | |
| Zinc | |
| Total Peñasquito | |
| Total Peñasquito | |
| Total Peñasquito | Total Peñasquito | 1,152 | | | 697 | | | 234 | | | 11 | | | 197 | | | 88 | |
| Merian | Merian | 373 | | | 181 | | | 42 | | | 9 | | | 139 | | | 24 | |
| Cerro Negro | Cerro Negro | 267 | | | 134 | | | 81 | | | 7 | | | 23 | | | 60 | |
| Yanacocha | Yanacocha | 255 | | | 140 | | | 46 | | | 6 | | | 13 | | | 146 | |
| Boddington: | Boddington: | |
| Gold | Gold | 810 | | | 343 | | | 61 | | |
| Gold | |
| Gold | |
| Copper | |
| Copper | |
| Copper | Copper | 175 | | | 95 | | | 17 | | |
| Total Boddington | Total Boddington | 985 | | | 438 | | | 78 | | | 3 | | | 478 | | | 35 | |
| Total Boddington | |
| Total Boddington | |
| Tanami | Tanami | 435 | | | 149 | | | 48 | | | 13 | | | 231 | | | 178 | |
Cadia: (2) | |
| Gold | |
| Gold | |
| Gold | |
| Copper | |
| Copper | |
| Copper | |
| Total Cadia | |
| Total Cadia | |
| Total Cadia | |
Lihir (2) | |
| Ahafo | Ahafo | 455 | | | 235 | | | 73 | | | 11 | | | 142 | | | 137 | |
| Akyem | 372 | | | 143 | | | 63 | | | 8 | | | 156 | | | 20 | |
| NGM | NGM | 1,081 | | | 559 | | | 252 | | | 15 | | | 244 | | | 138 | |
| Corporate and Other | Corporate and Other | — | | | — | | | 18 | | | 91 | | | (618) | | | 22 | |
Held for sale (3) | |
| CC&V | |
| CC&V | |
| CC&V | |
| Musselwhite | |
| Porcupine | |
| Éléonore | |
Telfer: (2) | |
| Gold | |
| Gold | |
| Gold | |
| Copper | |
| Copper | |
| Copper | |
| Total Telfer | |
| Total Telfer | |
| Total Telfer | |
| Akyem | |
| Consolidated | Consolidated | $ | 6,081 | | | $ | 3,143 | | | $ | 1,106 | | | $ | 189 | | | $ | 1,036 | | | $ | 983 | |
____________________________
(1)Includes an increasea decrease in accrued capital expenditures of $27;$77. Consolidated capital expenditures on a cash basis were $850.
(2)Sites acquired through the Newcrest transaction. Refer to Note 3 for further information.
(3)Refer to Note 5 for further information on held for sale. The Coffee development project disposal group is included in Corporate and other.
NEWMONT CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(unaudited, dollars in millions, except per share, per ounce and per pound amounts)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Sales | | Costs Applicable to Sales | | Depreciation and Amortization | | Advanced Projects, Research and Development and Exploration | | Income (Loss) before Income and Mining Tax and Other Items | | Capital Expenditures (1) |
| Three Months Ended March 31, 2023 | | | | | | | | | | | |
| CC&V | $ | 91 | | | $ | 51 | | | $ | 7 | | | $ | 3 | | | $ | 27 | | | $ | 10 | |
| Musselwhite | 83 | | | 58 | | | 19 | | | 1 | | | 6 | | | 14 | |
| Porcupine | 123 | | | 70 | | | 29 | | | 4 | | | 15 | | | 22 | |
| Éléonore | 129 | | | 75 | | | 27 | | | 1 | | | 26 | | | 14 | |
| Peñasquito: | | | | | | | | | | | |
| Gold | 110 | | | 67 | | | 20 | | | | | | | |
| Silver | 117 | | | 82 | | | 25 | | | | | | | |
| Lead | 32 | | | 22 | | | 7 | | | | | | | |
| Zinc | 117 | | | 86 | | | 24 | | | | | | | |
| Total Peñasquito | 376 | | | 257 | | | 76 | | | 3 | | | 22 | | | 35 | |
| Merian | 159 | | | 85 | | | 18 | | | 3 | | | 53 | | | 14 | |
| Cerro Negro | 116 | | | 70 | | | 31 | | | 2 | | | 7 | | | 35 | |
| Yanacocha | 100 | | | 56 | | | 16 | | | 3 | | | — | | | 63 | |
| Boddington: | | | | | | | | | | | |
| Gold | 381 | | | 167 | | | 28 | | | | | | | |
| Copper | 110 | | | 53 | | | 9 | | | | | | | |
| Total Boddington | 491 | | | 220 | | | 37 | | | 2 | | | 233 | | | 37 | |
| Tanami | 123 | | | 61 | | | 19 | | | 4 | | | 40 | | | 74 | |
| Ahafo | 249 | | | 130 | | | 39 | | | 6 | | | 71 | | | 90 | |
| Akyem | 148 | | | 63 | | | 29 | | | 3 | | | 49 | | | 10 | |
| NGM | 491 | | | 286 | | | 106 | | | 7 | | | 85 | | | 84 | |
| Corporate and Other | — | | | — | | | 8 | | | 41 | | | (95) | | | 6 | |
| Consolidated | $ | 2,679 | | | $ | 1,482 | | | $ | 461 | | | $ | 83 | | | $ | 539 | | | $ | 508 | |
____________________________
(1)Includes a decrease in accrued capital expenditures of $18; consolidated capital expenditures on a cash basis were $956.$526.
(2)Costs applicable
NOTE 5 ASSETS AND LIABILITIES HELD FOR SALE
Based on a comprehensive review of the Company’s portfolio of assets, the Company’s Board of Directors approved a portfolio optimization program to salesdivest six non-core assets and a development project in February 2024. The non-core assets to be divested include the CC&V, Musselwhite, Porcupine, Éléonore, Telfer, and Akyem reportable segments, and the Coffee development project which is included within Corporate and other. The Telfer disposal group also includes amounts resulting from the profit-sharing agreement completed with the Peñasquito workforce during the second quarter of 2022. Under the agreement,Havieron development project, which is 70% owned by the Company agreedand accounted for under proportionate consolidation, and other related assets.
Based on progress made through the Company's active sales program and management’s expectation that the sale is probable and will be completed within 12 months, the Company concluded that these non-core assets and the development project met the accounting requirements to pay its workforce an uncapped profit-sharing bonus each year, based onbe presented as held for sale in February 2024. As of December 31, 2023, the agreed upon terms. Additionally, the termsaggregate net book value of the agreement are retroactively appliednon-core assets and the development project was $3,419.
Upon meeting the requirements to profit-sharing relatedbe presented as held for sale, the six non-core assets and the development project were recorded at the lower of the carrying value or fair value, less costs to 2021 site performance,sell, resulting in $70 recordeda write-down of $352 recognized for the three months ended March 31, 2024 within Costs applicableLoss on assets held for sale. As a result, the aggregate net book value of the non-core assets and the development project was $3,305 at March 31, 2024. The write-down resulted in a tax impact of $133, resulting in a total loss of $485 recognized for the three months ended March 31, 2024 within Loss on assets held for sale.
The estimated fair values were determined using the income approach and are considered a non-recurring level 3 fair value measurement. Significant inputs to salesthe fair value measured included (i) cash flow information available to the Company, (ii) a short-term gold price of $2,175 per ounce, (iii) a long-term gold price of $1,700 per ounce, (iv) current estimates of reserves, resources, and exploration potential, and (v) a reporting unit specific discount rate in the second quarterrange of 2022. 5.875% to 11.875%. Additional losses may be incurred as the Company continues its active sales program or as fair value estimates change.
NEWMONT CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(unaudited, dollars in millions, except per share, per ounce and per pound amounts)
The amounts relatedfollowing table presents the carrying value of the major classes of assets and liabilities held for sale by disposal group, prior to recognition of the 2021 profit-sharing were paidwrite-down of $352, as of March 31, 2024:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| CC&V | | Musselwhite | | Porcupine | | Éléonore | | Telfer | | Akyem | | Coffee Project (1) | | Total |
| Assets held for sale: | | | | | | | | | | | | | | | |
| Property, plant and mine development, net | $ | 82 | | | $ | 991 | | | $ | 1,366 | | | $ | 706 | | | $ | 380 | | | $ | 522 | | | $ | 321 | | | $ | 4,368 | |
| Other assets | 459 | | | 38 | | | 132 | | | 162 | | | 327 | | | 521 | | | 1 | | | 1,640 | |
| Carrying value of assets held for sale | $ | 541 | | | $ | 1,029 | | | $ | 1,498 | | | $ | 868 | | | $ | 707 | | | $ | 1,043 | | | $ | 322 | | | $ | 6,008 | |
| | | | | | | | | | | | | | | |
| Liabilities held for sale: | | | | | | | | | | | | | | | |
| Reclamation and remediation liabilities | $ | 279 | | | $ | 78 | | | $ | 543 | | | $ | 83 | | | $ | 207 | | | $ | 398 | | | $ | 3 | | | $ | 1,591 | |
| Other liabilities | 36 | | | 253 | | | 209 | | | 58 | | | 127 | | | 74 | | | 3 | | | 760 | |
| Carrying value of liabilities held for sale | $ | 315 | | | $ | 331 | | | $ | 752 | | | $ | 141 | | | $ | 334 | | | $ | 472 | | | $ | 6 | | | $ | 2,351 | |
____________________________
(1)The Coffee Project is included in the third quarter of 2022.Corporate and other.
NEWMONT CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(unaudited, dollars in millions, except per share, per ounce and per pound amounts)
NOTE 46 SALES
The following tables present the Company’s Sales by mining operation, product and inventory type:
| | Gold Sales from Doré Production | | Sales from Concentrate and Other Production | | Total Sales |
| Three Months Ended June 30, 2023 | | | | | |
| CC&V | $ | 82 | | | $ | — | | | $ | 82 | |
| Musselwhite | 80 | | | — | | | 80 | |
| Porcupine | 125 | | | — | | | 125 | |
| Éléonore | 100 | | | — | | | 100 | |
| Gold Sales from Doré Production | | | Gold Sales from Doré Production | | Sales from Concentrate and Other Production | | Total Sales |
| Three Months Ended March 31, 2024 | |
Brucejack (1) | |
Brucejack (1) | |
Brucejack (1) | |
Red Chris: (1) | |
| Gold | |
| Gold | |
| Gold | |
| Copper | |
| Total Red Chris | |
| Peñasquito: | Peñasquito: | |
| Gold | |
| Gold | |
| Gold | Gold | 19 | | | 76 | | | 95 | |
Silver (1)(2) | Silver (1)(2) | — | | | 124 | | | 124 | |
| Lead | Lead | — | | | 32 | | | 32 | |
| Zinc | Zinc | — | | | 65 | | | 65 | |
| Total Peñasquito | Total Peñasquito | 19 | | | 297 | | | 316 | |
| Merian | Merian | 104 | | | — | | | 104 | |
| Cerro Negro | Cerro Negro | 100 | | | — | | | 100 | |
| Yanacocha | Yanacocha | 130 | | | 2 | | | 132 | |
| Boddington: | Boddington: | |
| Gold | Gold | 100 | | | 294 | | | 394 | |
| Gold | |
| Gold | |
| Copper | Copper | — | | | 82 | | | 82 | |
| Total Boddington | Total Boddington | 100 | | | 376 | | | 476 | |
| Tanami | Tanami | 244 | | | — | | | 244 | |
Cadia: (1) | |
| Gold | |
| Gold | |
| Gold | |
| Copper | |
| Total Cadia | |
Lihir (1) | |
| Ahafo | Ahafo | 263 | | | — | | | 263 | |
NGM (3) | |
Held for sale (4) | |
| CC&V | |
| CC&V | |
| CC&V | |
| Musselwhite | |
| Porcupine | |
| Éléonore | |
Telfer: (1) | |
| Gold | |
| Gold | |
| Gold | |
| Copper | |
| Total Telfer | |
| Akyem | Akyem | 98 | | | — | | | 98 | |
NGM (2) | 539 | | | 24 | | | 563 | |
| Consolidated | Consolidated | $ | 1,984 | | | $ | 699 | | | $ | 2,683 | |
____________________________
(1)Sites acquired through the Newcrest transaction. Refer to Note 3 for further information.
(2)Silver sales from concentrate includes $27 related to non-cash amortization of the silver streaming agreement liability.
(3)The Company purchases its proportionate share of gold doré from NGM for resale to third parties. Gold doré purchases from NGM totaled $530 for the three months ended March 31, 2024.
(4)Refer to Note 5 for further information on held for sale.
NEWMONT CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(unaudited, dollars in millions, except per share, per ounce and per pound amounts)
| | | | | | | | | | | | | | | | | |
| Gold Sales from Doré Production | | Sales from Concentrate and Other Production | | Total Sales |
| Three Months Ended March 31, 2023 | | | | | |
| CC&V | $ | 91 | | | $ | — | | | $ | 91 | |
| Musselwhite | 83 | | | — | | | 83 | |
| Porcupine | 123 | | | — | | | 123 | |
| Éléonore | 129 | | | — | | | 129 | |
| Peñasquito: | | | | | |
| Gold | 15 | | | 95 | | | 110 | |
Silver (1) | — | | | 117 | | | 117 | |
| Lead | — | | | 32 | | | 32 | |
| Zinc | — | | | 117 | | | 117 | |
| Total Peñasquito | 15 | | | 361 | | | 376 | |
| Merian | 159 | | | — | | | 159 | |
| Cerro Negro | 116 | | | — | | | 116 | |
| Yanacocha | 94 | | | 6 | | | 100 | |
| Boddington: | | | | | |
| Gold | 93 | | | 288 | | | 381 | |
| Copper | — | | | 110 | | | 110 | |
| Total Boddington | 93 | | | 398 | | | 491 | |
| Tanami | 123 | | | — | | | 123 | |
| Ahafo | 249 | | | — | | | 249 | |
| Akyem | 148 | | | — | | | 148 | |
NGM (2) | 473 | | | 18 | | | 491 | |
| Consolidated | $ | 1,896 | | | $ | 783 | | | $ | 2,679 | |
____________________________
(1)Silver sales from concentrate includes $15$16 related to non-cash amortization of the silver streaming agreement liability.
(2)The Company purchases its proportionate share of gold doré from NGM for resale to third parties. Gold doré purchases from NGM totaled $531$481 for the three months ended June 30,March 31, 2023.
NEWMONT CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(unaudited, dollars in millions, except per share, per ounce and per pound amounts)
| | | | | | | | | | | | | | | | | |
| Gold Sales from Doré Production | | Sales from Concentrate and Other Production | | Total Sales |
| Three Months Ended June 30, 2022 | | | | | |
| CC&V | $ | 85 | | | $ | — | | | $ | 85 | |
| Musselwhite | 73 | | | — | | | 73 | |
| Porcupine | 125 | | | — | | | 125 | |
| Éléonore | 87 | | | — | | | 87 | |
| Peñasquito: | | | | | |
| Gold | 25 | | | 205 | | | 230 | |
Silver (1) | — | | | 140 | | | 140 | |
| Lead | — | | | 28 | | | 28 | |
| Zinc | — | | | 92 | | | 92 | |
| Total Peñasquito | 25 | | | 465 | | | 490 | |
| Merian | 178 | | | — | | | 178 | |
| Cerro Negro | 145 | | | — | | | 145 | |
| Yanacocha | 129 | | | (1) | | | 128 | |
| Boddington: | | | | | |
| Gold | 107 | | | 322 | | | 429 | |
| Copper | — | | | 76 | | | 76 | |
| Total Boddington | 107 | | | 398 | | | 505 | |
| Tanami | 249 | | | — | | | 249 | |
| Ahafo | 253 | | | — | | | 253 | |
| Akyem | 203 | | | — | | | 203 | |
NGM (2) | 521 | | | 16 | | | 537 | |
| Consolidated | $ | 2,180 | | | $ | 878 | | | $ | 3,058 | |
____________________________
(1)Silver sales from concentrate includes $20 related to non-cash amortization of the silver streaming agreement liability.
(2)The Company purchases its proportionate share of gold doré from NGM for resale to third parties. Gold doré purchases from NGM totaled $525 for the three months ended June 30, 2022.
NEWMONT CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(unaudited, dollars in millions, except per share, per ounce and per pound amounts)
| | | | | | | | | | | | | | | | | |
| Gold Sales from Doré Production | | Sales from Concentrate and Other Production | | Total Sales |
| Six Months Ended June 30, 2023 | | | | | |
| CC&V | $ | 173 | | | $ | — | | | $ | 173 | |
| Musselwhite | 163 | | | — | | | 163 | |
| Porcupine | 248 | | | — | | | 248 | |
| Éléonore | 229 | | | — | | | 229 | |
| Peñasquito: | | | | | |
| Gold | 34 | | | 171 | | | 205 | |
Silver (1) | — | | | 241 | | | 241 | |
| Lead | — | | | 64 | | | 64 | |
| Zinc | — | | | 182 | | | 182 | |
| Total Peñasquito | 34 | | | 658 | | | 692 | |
| Merian | 263 | | | — | | | 263 | |
| Cerro Negro | 216 | | | — | | | 216 | |
| Yanacocha | 224 | | | 8 | | | 232 | |
| Boddington: | | | | | |
| Gold | 193 | | | 582 | | | 775 | |
| Copper | — | | | 192 | | | 192 | |
| Total Boddington | 193 | | | 774 | | | 967 | |
| Tanami | 367 | | | — | | | 367 | |
| Ahafo | 512 | | | — | | | 512 | |
| Akyem | 246 | | | — | | | 246 | |
NGM (2) | 1,012 | | | 42 | | | 1,054 | |
| Consolidated | $ | 3,880 | | | $ | 1,482 | | | $ | 5,362 | |
____________________________
(1)Silver sales from concentrate includes $31 related to non-cash amortization of the silver streaming agreement liability.
(2)The Company purchases its proportionate share of gold doré from NGM for resale to third parties. Gold doré purchases from NGM totaled $1,012 for the six months ended June 30, 2023.
NEWMONT CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(unaudited, dollars in millions, except per share, per ounce and per pound amounts)
| | | | | | | | | | | | | | | | | |
| Gold Sales from Doré Production | | Sales from Concentrate and Other Production | | Total Sales |
| Six Months Ended June 30, 2022 | | | | | |
| CC&V | $ | 148 | | | $ | 5 | | | $ | 153 | |
| Musselwhite | 133 | | | — | | | 133 | |
| Porcupine | 239 | | | — | | | 239 | |
| Éléonore | 181 | | | — | | | 181 | |
| Peñasquito: | | | | | |
| Gold | 56 | | | 426 | | | 482 | |
Silver (1) | — | | | 296 | | | 296 | |
| Lead | — | | | 72 | | | 72 | |
| Zinc | — | | | 302 | | | 302 | |
| Total Peñasquito | 56 | | | 1,096 | | | 1,152 | |
| Merian | 373 | | | — | | | 373 | |
| Cerro Negro | 267 | | | — | | | 267 | |
| Yanacocha | 256 | | | (1) | | | 255 | |
| Boddington: | | | | | |
| Gold | 198 | | | 612 | | | 810 | |
| Copper | — | | | 175 | | | 175 | |
| Total Boddington | 198 | | | 787 | | | 985 | |
| Tanami | 435 | | | — | | | 435 | |
| Ahafo | 455 | | | — | | | 455 | |
| Akyem | 372 | | | — | | | 372 | |
NGM (2) | 1,050 | | | 31 | | | 1,081 | |
| Consolidated | $ | 4,163 | | | $ | 1,918 | | | $ | 6,081 | |
____________________________
(1)Silver sales from concentrate includes $39 related to non-cash amortization of the silver streaming agreement liability.
(2)The Company purchases its proportionate share of gold doré from NGM for resale to third parties. Gold doré purchases from NGM totaled $1,051 for the six months ended June 30, 2022.
Trade Receivables and Provisional Sales
At June 30, 2023March 31, 2024 and December 31, 2022,2023, Trade receivables primarily consisted of sales from provisionally priced concentrate and other production. The impact to Sales from revenue recognized due to the changes in pricing on provisional sales is a decreasewas an increase of $(22)$40 and $(105)$22 for the three months ended June 30,March 31, 2024 and 2023, and 2022, respectively, and a decrease of $— and $(47) for the six months ended June 30, 2023 and 2022, respectively.
At June 30, 2023,March 31, 2024, Newmont had the following provisionally priced concentrate sales subject to final pricing over the next several months: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Gold | | Copper | | Silver | | Lead | | Zinc |
| (ounces,
in thousands) | | (pounds,
in millions) | | (ounces,
in thousands) | | (pounds,
in millions) | | (pounds,
in millions) |
Provisionally priced sales subject to final pricing (1) | 148 | | 36 | | 1,966 | | | 26 | | 47 |
| Average provisional price, per measure | $ | 1,926 | | | $ | 3.72 | | | $ | 22.84 | | | $ | 0.95 | | | $ | 1.08 | |
| | | | | | | | | | | |
| Provisionally Priced Sales Subject to Final Pricing (1) | | Average Provisional
Price (per ounce/pound) |
| Gold (ounces, in thousands) | 209 | | | $ | 2,222 | |
| Copper (pounds, in millions) | 76 | | | $ | 3.99 | |
| Silver (ounces, in millions) | 5 | | | $ | 24.82 | |
| Lead (pounds, in millions) | 46 | | | $ | 0.92 | |
| Zinc (pounds, in millions) | 87 | | | $ | 1.10 | |
Molybdenum (pounds, in millions) (2) | 1 | | | $ | 19.81 | |
____________________________(1)Includes provisionally priced by-product sales subject to final pricing, which are recognized in Costs applicable to sales.
(2)Molybdenum is a by-product at the Cadia site and is recognized as a reduction to Costs applicable to sales.
NOTE 57 RECLAMATION AND REMEDIATION
The Company’s mining and exploration activities are subject to various domestic and international laws and regulations governing the protection of the environment. These laws and regulations are continually changing and are generally becoming more restrictive. The Company conducts its operations to protect public health and the environment and believes its operations are in compliance with applicable laws and regulations in all material respects. The Company has made, and expects to make in the future, expenditures to comply with such laws and regulations, but cannot predict the full amount of such future expenditures. Estimated future reclamation and remediation costs are based principally on current legal and regulatory requirements.
NEWMONT CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(unaudited, dollars in millions, except per share, per ounce and per pound amounts)
expenditures to comply with such laws and regulations, but cannot predict the full amount of such future expenditures. Estimated future reclamation and remediation costs are based principally on current legal and regulatory requirements.
The Company’s Reclamation and remediation expense consisted of: | | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended
June 30, | | Six Months Ended
June 30, |
| 2023 | | 2022 | | 2023 | | 2022 |
| Reclamation adjustments and other | $ | 6 | | | $ | 1 | | | $ | 8 | | | $ | 2 | |
| Reclamation accretion | 59 | | | 43 | | | 119 | | | 86 | |
| Reclamation expense | 65 | | | 44 | | | 127 | | | 88 | |
| | | | | | | |
| Remediation adjustments and other | (1) | | | 3 | | | 1 | | | 19 | |
| Remediation accretion | 2 | | | 2 | | | 4 | | | 3 | |
| Remediation expense | 1 | | | 5 | | | 5 | | | 22 | |
| Reclamation and remediation | $ | 66 | | | $ | 49 | | | $ | 132 | | | $ | 110 | |
| | | | | | | | | | | | | | | |
| | | Three Months Ended
March 31, |
| | | | | 2024 | | 2023 |
| Reclamation adjustments and other | | | | | $ | 3 | | | $ | 2 | |
| Reclamation accretion | | | | | 85 | | | 60 | |
| Reclamation expense | | | | | 88 | | | 62 | |
| | | | | | | |
| Remediation adjustments and other | | | | | 8 | | | 2 | |
| Remediation accretion | | | | | 2 | | | 2 | |
| Remediation expense | | | | | 10 | | | 4 | |
| Reclamation and remediation | | | | | $ | 98 | | | $ | 66 | |
The following are reconciliations of Reclamation and remediation liabilities:
| | | | | | | | | | | | | | | | | | | | | | | |
| Reclamation | | Remediation (1) |
| 2023 | | 2022 | | 2023 | | 2022 |
| Balance at January 1, | $ | 6,731 | | | $ | 5,768 | | | $ | 373 | | | $ | 344 | |
Additions, changes in estimates and other (1) | 1 | | | 13 | | | (2) | | | 13 | |
| | | | | | | |
| Payments, net | (99) | | | (78) | | | (12) | | | (23) | |
| Accretion expense | 119 | | | 86 | | | 4 | | | 3 | |
| Balance at June 30, | $ | 6,752 | | | $ | 5,789 | | | $ | 363 | | | $ | 337 | |
| | | | | | | | | | | | | | | | | | | | | | | |
| Reclamation | | Remediation |
| 2024 | | 2023 | | 2024 | | 2023 |
Balance at January 1, (1) | $ | 8,385 | | | $ | 6,731 | | | $ | 401 | | | $ | 373 | |
| Additions, changes in estimates, and other | — | | | — | | | 5 | | | — | |
| | | | | | | |
| Payments, net | (53) | | | (41) | | | (6) | | | (5) | |
| Accretion expense | 85 | | | 60 | | | 2 | | | 2 | |
Reclassification to Current liabilities held for sale (2) | (1,571) | | | — | | | (20) | | | — | |
| Balance at March 31, | $ | 6,846 | | | $ | 6,750 | | | $ | 382 | | | $ | 370 | |
_______________________________________________________(1)The $13 additionNewcrest transaction occurred on November 6, 2023, resulting in an increase in the beginning balance at January 1, 2024, as compared to the beginning balance at January 1, 2023. Refer to Note 3 for further information.
(2)During the six months ended June 30, 2022 is duefirst quarter of 2024, certain non-core assets were determined to expected higher waste disposal costs at Midnite Mine.meet the criteria for assets held for sale. As a result, the related assets and liabilities, including Reclamation and remediation liabilities, were reclassified to Current assets held for sale and Current liabilities held for sale, respectively. Refer to Note 5 for additional information.
| | At June 30, 2023 | | At December 31, 2022 |
| Reclamation | | Remediation | | Total | | Reclamation | | Remediation | | Total |
| At March 31, 2024 | | | At March 31, 2024 | | At December 31, 2023 |
| Reclamation | | | Reclamation | | Remediation | | Total | | Reclamation | | Remediation | | Total |
Current (1) | Current (1) | $ | 467 | | | $ | 44 | | | $ | 511 | | | $ | 482 | | | $ | 44 | | | $ | 526 | |
Non-current (2) | Non-current (2) | 6,285 | | | 319 | | | 6,604 | | | 6,249 | | | 329 | | | 6,578 | |
Total (3) | Total (3) | $ | 6,752 | | | $ | 363 | | | $ | 7,115 | | | $ | 6,731 | | | $ | 373 | | | $ | 7,104 | |
____________________________
(1)The current portion of reclamation and remediation liabilities are included in Other current liabilities.
(2)The non-current portion of reclamation and remediation liabilities are included in Reclamation and remediation liabilities.
(3)Total reclamation liabilities include $3,707$4,808 and $3,722$4,804 related to Yanacocha at June 30, 2023March 31, 2024 and December 31, 2022,2023, respectively.
The Company is also involved in several matters concerning environmental remediation obligations associated with former, primarily historic, mining activities. Generally, these matters concern developing and implementing remediation plans at the various sites involved. The amounts accrued are reviewed periodically based upon facts and circumstances available at the time. Changes in estimates are recorded in Other current liabilities and Reclamation and remediation liabilities in the period estimates are revised.
Included in Current assets held for sale at March 31, 2024 is $53 of restricted cash held for purposes of settling reclamation and remediation obligations at Akyem.
Included in Other non-current assets at June 30, 2023March 31, 2024 and December 31, 20222023 are $64$32 and $62,$81, respectively, of non-current restricted cash held for purposes of settling reclamation and remediation obligations. The amounts at June 30, 2023March 31, 2024 primarily relate to Ahafo and Midnite Mine, included in Corporate and other. The amounts at December 31, 20222023 primarily relate to Ahafo and Akyem.
Included in Other non-current assets at June 30, 2023March 31, 2024 and December 31, 20222023 are $32$20 and $35,$21, respectively, of non-current restricted investments, which are legally pledged for purposes of settling reclamation and remediation obligations. The amounts at June 30, 2023March 31, 2024 and December 31, 20222023 primarily relate to San Jose Reservoir at Yanacocha.
Refer to Note 1820 for further discussion of reclamation and remediation matters.
NEWMONT CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(unaudited, dollars in millions, except per share, per ounce and per pound amounts)
NOTE 68 OTHER EXPENSE, NET
| | | | Three Months Ended
March 31, | |
| | | Three Months Ended
March 31, | |
| | | Three Months Ended
March 31, | |
| | | | | 2024 | | | | | | | 2024 | | 2023 |
Newcrest transaction and integration costs (1) | |
| Settlement costs | |
| Impairment charges | |
| Restructuring and severance | |
| | Three Months Ended
June 30, | | Six Months Ended
June 30, |
| 2023 | | 2022 | | 2023 | | 2022 |
Newcrest transaction-related costs (1) | $ | 21 | | | $ | — | | | $ | 21 | | | $ | — | |
| Restructuring and severance | 10 | | | — | | | 12 | | | 1 | |
| Impairment charges | 4 | | | 2 | | | 8 | | | 2 | |
COVID-19 specific costs (2) | — | | | 10 | | | — | | | 27 | |
| Settlement costs | — | | | 5 | | | — | | | 18 | |
| Other | |
| Other | |
| Other | Other | 6 | | | 5 | | | 8 | | | 9 | |
| Other expense, net | Other expense, net | $ | 41 | | | $ | 22 | | | $ | 49 | | | $ | 57 | |
(1)Primarily representsRepresents costs incurred related to the Proposed Newcrest Transaction in the second quarter of 2023.Transaction. Refer to Note 13 for further information.
(2)Beginning January 1, 2023, COVID-19 specific costs incurred in the ordinary course of business are recognized in Costs applicable to sales.
NOTE 79 OTHER INCOME (LOSS), NET
| | | | Three Months Ended
March 31, | |
| | | Three Months Ended
March 31, | |
| | | Three Months Ended
March 31, | |
| | | | | 2024 | | | | | | | 2024 | | 2023 |
| Interest income | |
| Change in fair value of investments | |
| Foreign currency exchange, net | |
Insurance proceeds (1) | |
Gain (loss) on asset and investment sales, net (2) | |
| | | Three Months Ended
June 30, | | Six Months Ended
June 30, |
| | 2023 | | 2022 | | 2023 | | 2022 |
| Interest income | $ | 37 | | | $ | 11 | | | $ | 73 | | | $ | 16 | |
Gain (loss) on asset and investment sales, net (1) | — | | | — | | | 36 | | | (35) | |
| Foreign currency exchange, net | (11) | | | 27 | | | (22) | | | 28 | |
| Change in fair value of investments | (42) | | | (135) | | | (1) | | | (96) | |
Pension settlement (2) | — | | | — | | | — | | | (130) | |
| Other | |
| | Other | |
| | Other | Other | (1) | | | 22 | | | (4) | | | 33 | |
| Other income (loss), net | Other income (loss), net | $ | (17) | | | $ | (75) | | | $ | 82 | | | $ | (184) | |
____________________________
(1)For the sixthree months ended June 30,March 31, 2024, primarily consists of insurance proceeds received of $10 related to a conveyor failure at Ahafo.
(2)For the three months ended March 31, 2024, primarily consists of the gain recognized on the purchase and sale of foreign currency bonds. For the three months ended March 31, 2023, primarily consists of the gain recognized on the exchange of the previously held 28.5% investment in Maverix Metals, Inc. ("Maverix") investment for the7.5% ownership interest in Triple Flag Precious Metals Corporation ("Triple Flag") investmentresulting from Triple Flag's acquisition of all issued and outstanding common shares of Maverix in January 2023, partially offset by the loss on the sale of the Triple Flag investment in March 2023. Refer to Note 11 for further information. For the six months ended June 30, 2022, primarily consists2023, resulting in a net gain of the loss recognized on the sale of the La Zanja equity method investment. Refer to Note 1 for further information.
(2)Primarily relates to the non-cash pension settlement charges of $130 resulting from the Company executing an annuitization to transfer a portion of the pension plan obligations from the Company's U.S. qualified defined benefit pension plans to an insurance company using plan assets during the first quarter of 2022.$36.
NOTE 810 INCOME AND MINING TAXES
A reconciliation of the U.S. federal statutory tax rate to the Company’s effective income tax rate follows:
| | Three Months Ended June 30, (1) | | Six Months Ended June 30, (1) | |
| 2023 | | 2022 | | 2023 | | 2022 | |
| | | Three Months Ended March 31, | |
| | | Three Months Ended March 31, | |
| | | Three Months Ended March 31, | |
| | | | | 2024 | |
| | | | | 2024 | |
| | | | | 2024 | |
| Income (loss) before income and mining tax and other items | |
| Income (loss) before income and mining tax and other items | |
| Income (loss) before income and mining tax and other items | Income (loss) before income and mining tax and other items | | $ | 300 | | | | $ | 408 | | | | $ | 839 | | | | $ | 1,036 | | |
| | U.S. federal statutory tax rate | 21 | % | | $ | 63 | | | 21 | % | | $ | 86 | | | 21 | % | | $ | 176 | | | 21 | % | | $ | 218 | | |
| U.S. Federal statutory tax rate | |
| | U.S. Federal statutory tax rate | |
| | U.S. Federal statutory tax rate | |
| Reconciling items: | |
| Reconciling items: | |
| Reconciling items: | Reconciling items: | | |
| | Change in valuation allowance on deferred tax assets | Change in valuation allowance on deferred tax assets | 16 | | | 48 | | | 9 | | | 37 | | | 7 | | | 57 | |
| 5 | | | 49 | | |
| | Change in valuation allowance on deferred tax assets | |
| | Change in valuation allowance on deferred tax assets | |
| Foreign rate differential | Foreign rate differential | 10 | | | 32 | | | 12 | | | 50 | | | 9 | | | 75 | | | 12 | | | 119 | | |
| Foreign rate differential | |
| Foreign rate differential | |
| | Mining and other taxes (net of associated federal benefit) | |
| | Mining and other taxes (net of associated federal benefit) | |
| | Mining and other taxes (net of associated federal benefit) | Mining and other taxes (net of associated federal benefit) | 7 | | | 20 | | | 6 | | | 22 | | | 6 | | | 49 | | | 6 | | | 59 | | |
| | Tax impact of foreign exchange | Tax impact of foreign exchange | 1 | | | 3 | | | (6) | | | (23) | | | 2 | | | 21 | | | (3) | | | (26) | | |
Mexico Tax Settlement (2) | — | | | — | | | (31) | | | (125) | | | — | | | — | | | (12) | | | (125) | | |
| | Tax impact of foreign exchange | |
| | Tax impact of foreign exchange | |
| | Akyem recognition of DTL for assets held for sale | |
| | Akyem recognition of DTL for assets held for sale | |
| | Akyem recognition of DTL for assets held for sale | |
| Other | |
| Other | |
| Other | Other | (1) | | | (3) | | | (3) | | | (14) | | | — | | | (2) | | | (5) | | | (47) | | |
| Income and mining tax expense (benefit) | Income and mining tax expense (benefit) | 54 | % | | $ | 163 | | | 8 | % | | $ | 33 | | | 45 | % | | $ | 376 | | | 24 | % | | $ | 247 | | |
| Income and mining tax expense (benefit) | |
| Income and mining tax expense (benefit) | |
____________________________
(1)Tax rates may not recalculate due to rounding.
(2)Following the framework established with the Mexican Tax Authority in the fourth quarter of 2021, a full settlement was entered into during the second quarter of 2022, which resulted in a net tax benefit of $125, primarily consisting of a reduction in the related uncertain tax position of $95.
NEWMONT CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(unaudited, dollars in millions, except per share, per ounce and per pound amounts)
NOTE 911 FAIR VALUE ACCOUNTING
The following tables set forth the Company’s assets and liabilities measured at fair value on a recurring (at least annually) or nonrecurring basis by level within the fair value hierarchy. As required by accounting guidance, assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. Refer to Note 13 of the Consolidated Financial Statements included in Part II of the Company's Annual Report on Form 10-K for the year ended December 31, 20222023 filed with the SEC on February 23, 202329, 2024 for further information on the Company's assets and liabilities included in the fair value hierarchy presented below.
| | | | | | | | | | | | | | | | | | | | | | | |
| Fair Value at June 30, 2023 |
| Total | | Level 1 | | Level 2 | | Level 3 |
| Assets: | | | | | | | |
Cash and cash equivalents (1) | $ | 2,829 | | | $ | 2,829 | | | $ | — | | | $ | — | |
| Restricted cash | 71 | | | 71 | | | — | | | — | |
Time deposits and other (Note 11) | 380 | | | — | | | 380 | | | — | |
| Trade receivable from provisional sales, net | 185 | | | — | | | 185 | | | — | |
| | | | | | | |
| Marketable equity securities (Note 11) | 253 | | | 244 | | | 9 | | | — | |
| Restricted marketable debt securities (Note 11) | 24 | | | 21 | | | 3 | | | — | |
| Restricted other assets (Note 11) | 8 | | | 8 | | | — | | | — | |
| Contingent consideration assets (Note 10) | 187 | | | — | | | — | | | 187 | |
| Derivative assets (Note 10) | 11 | | | — | | | 11 | | | — | |
| $ | 3,948 | | | $ | 3,173 | | | $ | 588 | | | $ | 187 | |
| Liabilities: | | | | | | | |
Debt (2) | $ | 5,199 | | | $ | — | | | $ | 5,199 | | | $ | — | |
| Contingent consideration liabilities (Note 10) | 5 | | | — | | | — | | | 5 | |
| Derivative liabilities (Note 10) | 8 | | | — | | | 8 | | | — | |
| $ | 5,212 | | | $ | — | | | $ | 5,207 | | | $ | 5 | |
| | | | | | | | | | | | | | | | | | | | | | | |
| Fair Value at March 31, 2024 |
| Total | | Level 1 | | Level 2 | | Level 3 |
| Assets: | | | | | | | |
| Cash and cash equivalents | $ | 2,336 | | | $ | 2,336 | | | $ | — | | | $ | — | |
| Restricted cash | 45 | | | 45 | | | — | | | — | |
| Trade receivables from provisional concentrate sales, net | 763 | | | — | | | 763 | | | — | |
Assets held for sale (Note 5) (1) | 1,541 | | | — | | | — | | | 1,541 | |
| Marketable and other equity securities (Note 13) | 278 | | | 269 | | | 9 | | | — | |
| Restricted marketable debt securities (Note 13) | 20 | | | 20 | | | — | | | — | |
| Derivative assets (Note 12) | 526 | | | — | | | 1 | | | 525 | |
| $ | 5,509 | | | $ | 2,670 | | | $ | 773 | | | $ | 2,066 | |
| Liabilities: | | | | | | | |
Debt (2) | $ | 8,891 | | | $ | — | | | $ | 8,891 | | | $ | — | |
| Derivative liabilities (Note 12) | 5 | | | — | | | — | | | 5 | |
| $ | 8,896 | | | $ | — | | | $ | 8,891 | | | $ | 5 | |
| | | | | | | | | | | | | | | | | | | | | | | |
| Fair Value at December 31, 2022 |
| Total | | Level 1 | | Level 2 | | Level 3 |
| Assets: | | | | | | | |
Cash and cash equivalents (1) | $ | 2,877 | | | $ | 2,877 | | | $ | — | | | $ | — | |
| Restricted cash | 67 | | | 67 | | | — | | | — | |
Time deposits and other (Note 11) | 846 | | | — | | | 846 | | | — | |
| Trade receivable from provisional sales, net | 364 | | | — | | | 364 | | | — | |
| Long-lived assets | 25 | | | — | | | — | | | 25 | |
| Marketable equity securities (Note 11) | 260 | | | 250 | | | 10 | | | — | |
| Restricted marketable debt securities (Note 11) | 27 | | | 23 | | | 4 | | | — | |
| Restricted other assets (Note 11) | 8 | | | 8 | | | — | | | — | |
| Contingent consideration assets (Note 10) | 188 | | | — | | | — | | | 188 | |
| Derivative assets (Note 10) | 20 | | | — | | | 20 | | | — | |
| $ | 4,682 | | | $ | 3,225 | | | $ | 1,244 | | | $ | 213 | |
| Liabilities: | | | | | | | |
Debt (2) | $ | 5,136 | | | $ | — | | | $ | 5,136 | | | $ | — | |
| Contingent consideration liabilities (Note 10) | 3 | | | — | | | — | | | 3 | |
| $ | 5,139 | | | $ | — | | | $ | 5,136 | | | $ | 3 | |
| | | | | | | | | | | | | | | | | | | | | | | |
| Fair Value at December 31, 2023 |
| Total | | Level 1 | | Level 2 | | Level 3 |
| Assets: | | | | | | | |
| Cash and cash equivalents | $ | 3,002 | | | $ | 3,002 | | | $ | — | | | $ | — | |
| Restricted cash | 98 | | | 98 | | | — | | | — | |
| Trade receivables from provisional concentrate sales, net | 734 | | | — | | | 734 | | | — | |
| Long-lived assets | 22 | | | — | | | — | | | 22 | |
| Marketable and other equity securities (Note 13) | 252 | | | 243 | | | 9 | | | — | |
| Restricted marketable debt securities (Note 13) | 21 | | | 21 | | | — | | | — | |
Derivative assets (Note 12) (3) | 642 | | | — | | | 7 | | | 635 | |
| $ | 4,771 | | | $ | 3,364 | | | $ | 750 | | | $ | 657 | |
| Liabilities: | | | | | | | |
Debt (2) | $ | 8,975 | | | $ | — | | | $ | 8,975 | | | $ | — | |
Derivative liabilities (Note 12) (3) | 5 | | | — | | | — | | | 5 | |
| $ | 8,980 | | | $ | — | | | $ | 8,975 | | | $ | 5 | |
____________________________(1)Cash and cash equivalents include time deposits that have an original maturityThe aggregate fair value of three months or less.net assets held for sale subject to fair value remeasurement was $888 at March 31, 2024.
(2)Debt is carried at amortized cost. The outstanding carrying value was $5,574$8,933 and $5,571$8,874 at June 30, 2023March 31, 2024 and December 31, 2022,2023, respectively. Refer to Note 1416 for further information. The fair value measurement of debt was based on an independent third-partythird party pricing source.
(3)Derivative assets and liabilities include amounts for contingent consideration assets and liabilities, which were separately disclosed in prior filings.
The Company's assets held for sale consist of the six non-core assets and development project that met the accounting requirements to be presented as Held for Sale in the first quarter of 2024. The assets are classified as non-recurring within Level 3 of the fair value hierarchy. Refer to Note 5 for further information.
NEWMONT CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(unaudited, dollars in millions, except per share, per ounce and per pound amounts)
The following tables set forth a summary of the quantitative and qualitative information related to the significant observable and unobservable inputs used in the calculation of the Company’s Level 3 financial assets and liabilities at June 30, 2023March 31, 2024 and December 31, 2022:2023:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Description | | At June 30, 2023 | | Valuation Technique | | Significant Input | | Range, Point Estimate or Average |
Contingent consideration assets | | $ | 187 | | | Monte Carlo (1)
| | Discount rate (2)
| | | 8.76 - 29.59 | % |
Contingent consideration liabilities | | $ | 5 | | | Discounted cash flow | | Discount rate (2)
| | | 5.56 - 7.08 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Description | | At March 31, 2024 | | Valuation Technique | | Significant Input | | Range, Point Estimate or Average | | Weighted Average Discount Rate |
| Assets held for sale | | $ | 1,541 | | | Income-based approach | | Various (1) | | Various (1) | | Various (1) |
| Derivative assets: | | | | | | | | | | |
Derivative assets, not designated for hedging (2) | | $ | 270 | | | Discounted cash flow | | Forward gold prices (per ounce) | | $1,860 - $2,771 | | 10.50 | % |
Hedging instruments (2) | | $ | 116 | | | Discounted cash flow | | Forward electricity prices | | A$43 - A$321 | | 6.42 | % |
| Contingent consideration assets | | $ | 139 | | | Monte Carlo (3) | | Discount rate | | 8.04% - 26.43% | | 11.52 | % |
| Derivative liabilities | | $ | 5 | | | Discounted cash flow | | Discount rate | | 4.82% - 6.15% | | 5.62 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Description | | At December 31, 2022 | | Valuation Technique | | Significant Input | | Range, Point Estimate or Average |
Long-lived assets | | $ | 25 | | | Market-based approach | | Various (3)
| | | Various (3)
| |
Contingent consideration assets | | $ | 188 | | | Monte Carlo (1)
| | Discount rate (2)
| | | 8.75 - 29.59 | % |
Contingent consideration liabilities | | $ | 3 | | | Discounted cash flow | | Discount rate (2)
| | | 5.56 - 7.08 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Description | | At December 31, 2023 | | Valuation Technique | | Significant Input | | Range, Point Estimate or Average | | Weighted Average Discount Rate |
| Long-lived assets | | $ | 22 | | | Market-multiple | | Various (4) | | Various (4) | | Various (4) |
| Derivative assets: | | | | | | | | | | |
Derivative assets, not designated for hedging (2) | | $ | 424 | | | Discounted cash flow | | Discount rate | | 6.28% - 10.50% | | 9.03 | % |
| Contingent consideration assets | | $ | 211 | | | Monte Carlo (3) | | Discount rate | | 8.04% - 26.43% | | 11.18 | % |
| Derivative liabilities | | $ | 5 | | | Discounted cash flow | | Discount rate | | 4.91% - 6.15% | | 5.65 | % |
____________________________
(1)Refer to Note 5 for information on the assumptions and inputs specific to the non-recurring fair value measurements performed in connection with assets held for sale.
(2)The Stream Credit Facility Agreement and the Cadia Power Purchase Agreement, acquired as part of the Newcrest transaction, were not designated in a hedging relationship at December 31, 2023. At January 1, 2024, the Company designated the Cadia Power Purchase Agreement for hedge accounting. As such, the Cadia Power Purchase Agreement is captured in Hedging instruments at March 31, 2024. Refer to Note 12 for further information.
(3)A Monte Carlo valuation model is used for the fair value measurement of the Batu Hijau contingent consideration asset. All other contingent consideration assets are valued using a probability-weighted discounted cash flow where the significant input is the discount rate.model.
(2)The weighted average discount rate used to calculate the Company’s contingent consideration assets and liabilities is 11.87% and 6.47%, respectively, at June 30, 2023 and 11.86% and 6.07%, respectively, at December 31, 2022. Various other inputs including, but not limited to, metal prices and production profiles were considered in determining the fair value of the individual contingent consideration assets and liabilities.
(3)(4)At December 31, 2022,2023, the Company recognized anits proportionate share of the non-cash impairment charge on the long-lived assets at CC&V,NGM, which resulted in a remaining long-lived asset balance of $25.$22. The impairmentestimated fair value was determined using the income approach and included the following significant inputs (i) updated cash flow information from the Company's business and closure plans at December 31, 2022, (ii) a short-term gold pricebased on observable market values for comparable assets expressed as dollar per ounce of $1,750, (iii) a long-term gold price of $1,600, (iv) current estimates of reserves,mineral resources and exploration potential, and (v)was considered a country specific pre-tax discount rate of 6.75%. The Company performed a nonrecurringnon-recurring level 3 fair value measurement and estimated the fair value of the remaining asset balance using a market-based approach based on the appraised value in an assumed sale to a third-party market participant.measurement.
The following tables set forth a summary of changes in the fair value of the Company’s recurring Level 3 financial assets and liabilities:
| | | | | | | | | | | | | | | | | | | | | | | |
| Contingent Consideration Assets (1) | | Total Assets | | Contingent Consideration Liabilities (2) | | Total Liabilities |
| Fair value at December 31, 2022 | $ | 188 | | | $ | 188 | | | $ | 3 | | | $ | 3 | |
| | | | | | | |
| Revaluation | (1) | | | (1) | | | 2 | | | 2 | |
| | | | | | | |
| Fair value at June 30, 2023 | $ | 187 | | | $ | 187 | | | $ | 5 | | | $ | 5 | |
| | | | | | | | | | | | | | | | | | | | | | | |
| Derivative Assets (1) | | Total Assets | | Derivative Liabilities | | Total Liabilities |
| Fair value at December 31, 2023 | $ | 635 | | | $ | 635 | | | $ | 5 | | | $ | 5 | |
Settlements/Reclassifications (2) | (76) | | | (76) | | | — | | | — | |
| Revaluation | (34) | | | (34) | | | — | | | — | |
| | | | | | | |
| Fair value at March 31, 2024 | $ | 525 | | | $ | 525 | | | $ | 5 | | | $ | 5 | |
| | | | | | | | | | | | | | | | | | | | | | | |
| Contingent Consideration Assets (1) | | Total Assets | | Contingent consideration liabilities | | Total liabilities |
| Fair value at December 31, 2021 | $ | 171 | | | $ | 171 | | | $ | 5 | | | $ | 5 | |
| | | | | | | |
| Revaluation | 10 | | | 10 | | | — | | | — | |
| Fair value at June 30, 2022 | $ | 181 | | | $ | 181 | | | $ | 5 | | | $ | 5 | |
| | | | | | | | | | | | | | | | | | | | | | | |
| Derivative Assets (1) | | Total Assets | | Derivative Liabilities (3) | | Total Liabilities |
| Fair value at December 31, 2022 | $ | 188 | | | $ | 188 | | | $ | 3 | | | $ | 3 | |
| | | | | | | |
| Revaluation | (1) | | | (1) | | | 2 | | | 2 | |
| Fair value at March 31, 2023 | $ | 187 | | | $ | 187 | | | $ | 5 | | | $ | 5 | |
____________________________(1)In 2024, the (loss) gain recognized on revaluation of derivative assets of $(6), $(32) and $4 is included in Other income (loss), net, Other comprehensive income (loss), and Net income (loss) from discontinued operations, respectively. In 2023, the (loss) gain recognized on revaluation derivative assets of contingent consideration assets $(7) and $6 is included in Other income (loss), net and Net income (loss) from discontinued operations,respectively.
(2)In 2022, the gain recognized on revaluationfirst quarter of 2024, certain amounts relating to the Batu Hijau contingent consideration asset were reclassified from current Derivative assets is included to Other current assets in Net income (loss) from discontinued operations.the Company’s Condensed Consolidated Balance Sheets as a result of achieving certain contractual milestones.
(2)(3)In 2023, the loss recognized on revaluation of contingent consideration liabilities is included in Other income (loss), net.
NEWMONT CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(unaudited, dollars in millions, except per share, per ounce and per pound amounts)
NOTE 12 DERIVATIVE INSTRUMENTS
| | | | | | | | | | | |
| At March 31,
2024 | | At December 31,
2023 |
| Current derivative assets: | | | |
Derivative assets, not designated for hedging (1) | $ | 49 | | | $ | 115 | |
| Contingent consideration assets | 63 | | | 76 | |
Hedging instruments (1) | 2 | | | 7 | |
| $ | 114 | | | $ | 198 | |
| | | |
| Non-current derivative assets: | | | |
Derivative assets, not designated for hedging (1) | $ | 221 | | | $ | 309 | |
| Contingent consideration assets | 76 | | | 135 | |
Hedging instruments (1) | 115 | | | — | |
| $ | 412 | | | $ | 444 | |
| | | |
Current derivative liabilities: (2) | | | |
| Contingent consideration liabilities | $ | 3 | | | $ | 3 | |
| $ | 3 | | | $ | 3 | |
| | | |
Non-current derivative liabilities: (3) | | | |
| Contingent consideration liabilities | $ | 5 | | | $ | 5 | |
| $ | 5 | | | $ | 5 | |
| | | |
| | | |
____________________________
NOTE 10 DERIVATIVES(1)The Stream Credit Facility Agreement and the Cadia Power Purchase Agreement, acquired as part of the Newcrest transaction, were not designated in a hedging relationship at December 31, 2023. At January 1, 2024, the Company designated the Cadia Power Purchase Agreement for hedge accounting. As a result, the Cadia Power Purchase Agreement is captured in Hedging instruments at March 31, 2024. See below for further information.
(2)Included in Other current liabilities INSTRUMENTSin the Company’s Condensed Consolidated Balance Sheets.
(3)Included in Other non-current liabilities in the Company’s Condensed Consolidated Balance Sheets.
Derivative Assets, Not Designated for Hedging
Derivatives, not designated for hedging, consisted of the Stream Credit Facility Agreement at March 31, 2024.
Stream Credit Facility Agreement ("SCFA")
The SCFA was a non-revolving credit facility in relation to the Fruta del Norte mine, which is wholly owned and operated by Lundin Gold Inc. ("Lundin Gold") in which the Company holds a 31.9% equity interest (refer to Note 13 for further information). The SCFA is a financial instrument that meets the definition of a derivative and is accounted for at fair value using a probability weighted discounted cash flow model, but is not designated for hedge accounting under ASC 815.
The SCFA has a face value of $150 to be repaid in cash based on the Fruta del Norte mine's gold and silver production. The SCFA has a stated interest rate of 7.5%. Repayments in excess of the principal and stated interest rate amount are recognized in Other income (loss), net in the Company's Condensed Consolidated Statement of Operations. The fair value of the SCFA was $270 at March 31, 2024, of which $49 was recognized in the current portion of Derivative assets and $221 was recognized in non-current Derivative assets in the Company’s Condensed Consolidated Balance Sheets. The fair value of the SCFA was $276 at December 31, 2023, of which $113 was recognized in the current portion of Derivative assets and $163 was recognized in non-current Derivative assets in the Company’s Condensed Consolidated Balance Sheets.
In April 2024, Lundin Gold entered into a binding agreement with the Company to repurchase the SCFA and settle the rights under the Offtake agreement. Refer to Note 13 for further information on the Offtake agreement. Under the terms of the binding agreement, Lundin Gold has agreed to pay cash consideration of $330 for full settlement of the SCFA and revocation of the Offtake agreement. The cash consideration will be paid in two installments with final payment to occur in the third quarter of 2024.
Hedging Instruments
In May 2023,Hedging instruments consisted of the Company entered into C$348 of CAD-denominatedCadia Power Purchase Agreement and A$648 of AUD-denominated fixed forward contracts to mitigate variability in the USD functional cash flows related to the CAD-denominated and AUD-denominated operating expenditures expected to be incurred between June and December 2023 included in the Company's operating mines located in Canada and Australia, respectively. The fixed forward contracts were transacted for risk management purposes. The Company has designated the CAD-denominated and AUD-denominated fixed forward contracts as foreign currency cash flow hedges against the forecasted CAD-denominated and AUD-denominated operating expenditures, respectively.at March 31, 2024.
NEWMONT CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(unaudited, dollars in millions, except per share, per ounce and per pound amounts)
Cadia Power Purchase Agreement ("Cadia PPA")
The Cadia PPA is a 15-year renewable power purchase agreement acquired by the Company through the Newcrest transaction. The Cadia PPA will partially hedge against future power price increases at the Cadia mine and will provide the Company with access to large scale generation certificates which the Company intends to surrender to achieve a reduction in its greenhouse gas emissions. At December 31, 2023, the Cadia PPA was a financial instrument that met the definition of a derivative under ASC 815 and was accounted for at fair value using a probability weighted discounted cash flow model, but was not designated for hedging. At January 1, 2024, the Company designated the Cadia PPA in a cash flow hedging relationship to mitigate the variability in cash flows related to approximately 40 percent of forecasted purchases of power at the Cadia mine for a 15 year period from the Cadia PPA's commercial operations date, which is expected in the third quarter of 2024.
To minimize credit risk, the Company only enters into transactions with counterparties that meet certain credit requirements and periodically reviews the creditworthiness of these counterparties. The Company believes that the risk of counterparty default is low and its exposure to credit risk is minimal.
The unrealized changes in fair value have been recorded in Accumulated other comprehensive income (loss) and will be reclassified to income during the period in which the hedged transaction affects earnings and is presented in the same income statement line item as the earnings effect of the hedged item. If the underlying hedge transaction becomes probable of not occurring, the related amounts in Accumulated other comprehensive income (loss) will be reclassified to earnings immediately. For the Cadia PPA cash flow hedge, amounts recorded in Accumulated other comprehensive income (loss) will be reclassified to earnings through Costs applicable to sales each period in which electricity is purchased beginning the commercial operations date.
Foreign currency cash flow hedges
In October 2022, the Company entered into A$574 of AUD-denominated fixed forward contracts to mitigate variability in the USD functional cash flows related to the AUD-denominated capital expenditures expected to be incurred in 2023 and 2024 during the construction and development phase of the Tanami Expansion 2 project. The fixed forward contracts were transacted for risk management purposes. The Company has designated the fixed forward contracts as foreign currency cash flow hedges against the forecasted AUD-denominated Tanami Expansion 2 capital expenditures.
To minimize credit risk, the Company only enters into transactions with counterparties that meet certain credit requirements and periodically reviews the creditworthiness of these counterparties. The Company believes that the risk of counterparty default is low and its exposure to credit risk is minimal.
The unrealized changes in fair value have been recorded in Accumulated other comprehensive income (loss) and are reclassified to income during the period in which the hedged transaction affects earnings and is presented in the same income statement line item as the earnings effect of the hedged item. If the underlying hedge transaction becomes probable of not occurring, the related amounts will be reclassified to earnings immediately. For the foreign currency cash flow hedges related to the Tanami Expansion 2 project, amounts recorded in Accumulated other comprehensive income (loss) will be reclassified to earnings through Depreciation and amortization after the project reaches commercial production. For the foreign currency cash flow hedges related to the CAD-denominated and AUD-denominated operating expenditures, amounts recorded in Accumulated other comprehensive income (loss) will be reclassified to earnings through Costs applicable to sales in the month that the operating expenditures are incurred.
The following table provides the fair value of the Company’s derivative instruments designated as cash flow hedges:
| | | | | | | | | | | |
| At June 30,
2023 | | At December 31,
2022 |
| Derivative Assets: | | | |
Foreign currency cash flow hedges, current (1) | $ | 10 | | | $ | 12 | |
Foreign currency cash flow hedges, non-current (2) | 1 | | | 8 | |
| $ | 11 | | | $ | 20 | |
| | | |
| Derivative Liabilities: | | | |
Foreign currency cash flow hedges, current (3) | $ | 8 | | | $ | — | |
| | | |
| $ | 8 | | | $ | — | |
| | | | | | | | | | | |
| At March 31,
2024 | | At December 31,
2023 |
Current hedging instruments: (1) | | | |
Cadia PPA cash flow hedge (2) | $ | 1 | | | $ | — | |
| Foreign currency cash flow hedges | 1 | | | 7 | |
| $ | 2 | | | $ | 7 | |
Non-current hedging instruments: (3) | | | |
Cadia PPA cash flow hedge (2) | $ | 115 | | | $ | — | |
| | | |
| $ | 115 | | | $ | — | |
| | | |
| | | |
| | | |
| | | |
| | | |
____________________________
(1)Included in the current portion of Other currentDerivative assets in the Company’s Condensed Consolidated Balance Sheets.
(2)At January 1, 2024, the Company designated the Cadia Power Purchase Agreement for hedge accounting. As a result, the Cadia PPA is captured in Derivative instruments, not designated for hedging at December 31, 2023. See above for further information.
(3)Included in non-current portion of Other non-currentDerivative assets in the Company’s Condensed Consolidated Balance Sheets.
NEWMONT CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(unaudited, dollars in Other current liabilities in the Company’s Condensed Consolidated Balance Sheets.millions, except per share, per ounce and per pound amounts)
The following table provides the losses (gains) recognized in earnings related to the Company's derivative instruments:
| | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended
June 30, | | Six Months Ended
June 30, |
| 2023 | | 2022 | | 2023 | | 2022 |
| Loss (gain) on cash flow hedges: | | | | | | | |
Foreign currency cash flow hedges (1) | $ | 2 | | | $ | — | | | $ | 2 | | | $ | — | |
Interest rate contracts (2) | 1 | | | 1 | | | 2 | | | 2 | |
| | | | | | | |
| $ | 3 | | | $ | 1 | | | $ | 4 | | | $ | 2 | |
| | | | | | | | | | | | | | | |
| | | Three Months Ended
March 31, |
| | | | | 2024 | | 2023 |
| Loss (gain) on cash flow hedges: | | | | | | | |
| | | | | | | |
| | | | | | | |
Interest rate contracts (1) | | | | | $ | 1 | | | $ | 1 | |
| | | | | | | |
| | | | | $ | 1 | | | $ | 1 | |
____________________________
(1)Foreign currency cash flow hedges relate to contracts entered into, and subsequently settled, to mitigate the variability of CAD and AUD denominated operating expenditures. The amounts are reclassified out of Accumulated other comprehensive income (loss) into earnings in the month that the operating expenditures are incurred. The losses (gains) recognized in earnings are included in Costs applicable to sales in the Company’s Condensed Consolidated Statement of Operations.
(2)Interest rate contracts relate to swaps entered into, and subsequently settled, associated with the issuance of certain senior notes.the 2022 Senior Notes, 2035 Senior Notes, 2039 Senior Notes, and 2042 Senior Notes. The related gains and losses are reclassified from Accumulated Other Comprehensive Income (Loss) and amortized to Interest expense, net over the term of the respective hedged notes.
Contingent Consideration Assets and Liabilities
Contingent consideration assets and liabilities are comprised of contingent consideration to be received or paid by the Company in conjunction with various sales of assets and investments with future payment contingent upon meeting certain milestones. These contingent consideration assets and liabilities are accounted for at fair value and consist of financial instruments that meet the definition of a derivative but are not designated for hedge accounting under ASC 815. Refer to Note 911 for further information regarding the fair value of the contingent consideration assets and liabilities.
The Company had the following contingent consideration assets and liabilities:
| | | | | | | | | | | |
| At March 31,
2024 | | At December 31,
2023 |
| Contingent consideration assets: | | | |
Batu Hijau and Elang (1) | $ | 89 | | | $ | 161 | |
Red Lake (2) | 39 | | | 39 | |
Cerro Blanco (2) | 6 | | | 6 | |
Triple Flag (2) | 4 | | | 4 | |
Other (2) | 1 | | | 1 | |
| $ | 139 | | | $ | 211 | |
| | | |
| Contingent consideration liabilities: | | | |
Norte Abierto (3) | $ | 3 | | | $ | 3 | |
Red Chris (4) | 3 | | | 3 | |
Galore Creek (3) | 2 | | | 2 | |
| $ | 8 | | | $ | 8 | |
____________________________(1)Contingent consideration related to the sale of PT Newmont Nusa Tenggara in 2016. At March 31, 2024, $63 is included in the current portion of Derivative assets and $26 is included in the non-current portion of Derivative assets in the Company’s Condensed Consolidated Balance Sheets. At December 31, 2023, $76 is included in the current portion of Derivative assets and $85 is included in the non-current portion of Derivative assets in the Company’s Condensed Consolidated Balance Sheets.
(2)Included in the non-current portion of Derivative assets in the Company’s Condensed Consolidated Balance Sheets.
(3)Included in Other non-current liabilities in the Company’s Condensed Consolidated Balance Sheets.
(4)Acquired through the Newcrest transaction and is included in Other current liabilities in the Company’s Condensed Consolidated Balance Sheets.
NEWMONT CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(unaudited, dollars in millions, except per share, per ounce and per pound amounts)
The Company had the following contingent consideration assets and liabilities:
| | | | | | | | | | | |
| At June 30,
2023 | | At December 31,
2022 |
| Contingent Consideration Assets: | | | |
Batu Hijau and Elang (1) | $ | 145 | | | $ | 139 | |
Red Lake (2) | 32 | | | 39 | |
Triple Flag (previously Maverix) (2)(3) | 4 | | | 4 | |
Other (2) | 6 | | | 6 | |
| $ | 187 | | | $ | 188 | |
| | | |
Contingent Consideration Liabilities: (4) | | | |
| Norte Abierto | $ | 3 | | | $ | 1 | |
| Galore Creek | 2 | | | 2 | |
| $ | 5 | | | $ | 3 | |
____________________________(1)At June 30, 2023, $69 is included in Othercurrent assets and $76 is included in Other non-current assets in the Company’s Condensed Consolidated Balance Sheets. At December 31, 2022, $139 is included in Other non-current assets in the Company’s Condensed Consolidated Balance Sheets.
(2)Included in Other non-current assets in the Company’s Condensed Consolidated Balance Sheets.
(3)In January 2023, Triple Flag acquired all of the issued and outstanding common shares of Maverix. Refer to Note 11 for further information.
(4)Included in Other non-current liabilities in the Company’s Condensed Consolidated Balance Sheets.
NOTE 1113 INVESTMENTS
| | At March 31,
2024 | | | At March 31,
2024 | | At December 31,
2023 |
| Current investments: | |
| | At June 30,
2023 | | At December 31,
2022 |
| Time deposits and other investments: | | | |
Time deposits and other (1) | $ | 380 | | | $ | 846 | |
| Marketable equity securities | |
| | Marketable equity securities | |
| | Marketable equity securities | Marketable equity securities | 29 | | | 34 | |
| | $ | 409 | | | $ | 880 | |
| | Non-current investments: | Non-current investments: | |
| Marketable equity securities | $ | 224 | | | $ | 226 | |
| | Non-current investments: | |
| | Non-current investments: | |
| Marketable and other equity securities | |
| Marketable and other equity securities | |
| Marketable and other equity securities | |
| | Equity method investments: | Equity method investments: | |
| Equity method investments: | |
| Equity method investments: | |
| Pueblo Viejo Mine (40.0%) | |
| Pueblo Viejo Mine (40.0%) | |
| Pueblo Viejo Mine (40.0%) | Pueblo Viejo Mine (40.0%) | $ | 1,462 | | | $ | 1,435 | |
| NuevaUnión Project (50.0%) | NuevaUnión Project (50.0%) | 961 | | | 956 | |
| Lundin Gold Inc. (31.9% and 32.0%, respectively) | |
| Norte Abierto Project (50.0%) | Norte Abierto Project (50.0%) | 525 | | | 518 | |
Maverix Metals, Inc. (—% and 28.5%, respectively) (2) | — | | | 143 | |
| | 3,883 | |
| 3,883 | |
| 3,883 | |
| $ | |
| Non-current restricted investments: (1) | |
Non-current restricted investments: (1) | |
Non-current restricted investments: (1) | |
| Marketable debt securities | |
| Marketable debt securities | |
| Marketable debt securities | |
| | | 2,948 | | | 3,052 | |
| $ | 3,172 | | | $ | 3,278 | |
| Non-current restricted investments: (3) | |
| Marketable debt securities | $ | 24 | | | $ | 27 | |
| Other assets | 8 | | | 8 | |
| $ | 32 | | | $ | 35 | |
____________________________
(1)At June 30, 2023 and December 31, 2022, Time deposits and other primarily includes time deposits with an original maturity of more than three months but less than one year of $374 and $829, respectively, and related accrued interest of $6 and $9, respectively.
(2)In January 2023, Maverix was fully acquired by Triple Flag. The Company's ownership interest in the newly combined company was subsequently sold in March 2023. Refer to "Maverix Metals, Inc." below for further information.
(3)Non-current restricted investments are legally pledged for purposes of settling reclamation and remediation obligations and are included in Other non-current assets. Refer to Note 57 for further information regarding these amounts.
NEWMONT CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(unaudited, dollars in millions, except per share, per ounce and per pound amounts)
Equity method investments
Income (loss) from the Company's equity method investments is recognized in Equity income (loss) of affiliates, which primarily consists of income from thePueblo Viejo. Income from Pueblo Viejo, minerecognized in Equity income (loss) of $15affiliates, consisted of $18 and $23$21, for the three months ended June 30,March 31, 2024 and 2023, and 2022, respectively, and $36 and $58 for the six months ended June 30, 2023 and 2022, respectively.
See below for further information on the Company's equity method investments.
Pueblo Viejo
As of June 30, 2023March 31, 2024 and December 31, 2022,2023, the Company had outstanding shareholder loans to Pueblo Viejo of $403$420 and $356,$429, with accrued interest of $12 and $8,$14, respectively, included in the Pueblo Viejo equity method investment. Additionally, the Company has an unfunded commitment to Pueblo Viejo in the form of a revolving loan facility ("Revolving Facility"). There were no borrowings outstanding under the Revolving Facility as of June 30, 2023.March 31, 2024.
The Company purchases its portion (40%) of gold and silver produced from Pueblo Viejo at market price and resells those ounces to third parties. Total payments made to Pueblo Viejo for gold and silver purchased were $104$122 and $221$117 for the three and six months ended June 30,March 31, 2024 and March 31, 2023, respectively. Total payments made to Pueblo Viejo for gold and silver purchased were $129 and $267 for the three and six months ended June 30, 2022, respectively. These purchases, net of subsequent sales, are included in Other income (loss), net and the net amount is immaterial. There were no amounts due to or from Pueblo Viejo for gold and silver purchases as of June 30, 2023March 31, 2024 or December 31, 2022.2023.
Maverix Metals,Lundin Gold Inc.
In January 2023, Triple FlagLundin Gold was acquired allas part of the issuedNewcrest transaction on November 6, 2023 and outstanding common sharesis accounted for on a quarterly lag.
The Company has the right to purchase 50% of Maverix, resulting in Newmont holdinggold produced from Lundin Gold at a 7.5% ownership interest inprice determined based on delivery dates and a defined quotational period and resells the combined company. Priorounces purchased to close, Newmont held 28.5%third parties under an offtake agreement acquired through the Newcrest transaction (the "Offtake agreement"). Total payments made to Lundin Gold under the Offtake agreement for gold purchased was $80 for the three months ended March 31, 2024. These purchases, net of Maverix’s outstanding common shares. In the first quarter of 2023, the Company sold all of its common shares in Triple Flag. As a result, a net gain of $36 was recognized in the first quarter of 2023, which issubsequent sales, are included in Other income (loss), net and the net in the Condensed Consolidated Statementamount is immaterial. There was $— and $13 payable due to Lundin Gold for gold purchases as of Operations. March 31, 2024 and December 31, 2023, respectively.
In the second quarter of 2023,April 2024, the Company exercised all of its warrants held in Triple Flag and sold allentered into a binding agreement with Lundin Gold for the repurchase of the underlying shares, resulting in an inconsequential gain.
NOTESCFA and the Offtake agreement. Refer to Note 12 INVENTORIES
| | | | | | | | | | | |
| At June 30,
2023 | | At December 31,
2022 |
| Materials and supplies | $ | 818 | | | $ | 750 | |
| In-process | 149 | | | 123 | |
| Concentrate | 88 | | | 47 | |
| Precious metals | 56 | | | 59 | |
| Inventories | $ | 1,111 | | | $ | 979 | |
NOTE 13 STOCKPILES AND ORE ON LEACH PADS
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| At June 30, 2023 | | At December 31, 2022 |
| Stockpiles | | Ore on Leach Pads | | Total | | Stockpiles | | Ore on Leach Pads | | Total |
| Current | $ | 591 | | | $ | 267 | | | $ | 858 | | | $ | 480 | | | $ | 294 | | | $ | 774 | |
| Non-current | 1,338 | | | 399 | | | 1,737 | | | 1,391 | | | 325 | | | 1,716 | |
| Total | $ | 1,929 | | | $ | 666 | | | $ | 2,595 | | | $ | 1,871 | | | $ | 619 | | | $ | 2,490 | |
NEWMONT CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(unaudited, dollars in millions, except per share, per ounce and per pound amounts)
NOTE 14 INVENTORIES
| | | | | | | | | | | |
| At March 31,
2024 | | At December 31,
2023 |
| Materials and supplies | $ | 1,078 | | | $ | 1,247 | |
| In-process | 124 | | | 160 | |
| Concentrate | 98 | | | 134 | |
| Precious metals | 85 | | | 122 | |
Inventories (1) | $ | 1,385 | | | $ | 1,663 | |
___________________________
(1)During the first quarter of 2024, certain non-core assets were determined to meet the criteria for held for sale. As a result, the related assets, including Inventories of $305, and liabilities were reclassified to Current assets held for sale and Current liabilities held for sale, respectively. Refer to Note 5 for additional information.
NOTE 15 STOCKPILES AND ORE ON LEACH PADS
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| At March 31, 2024 (1) | | At December 31, 2023 |
| Stockpiles | | Ore on Leach Pads | | Total | | Stockpiles | | Ore on Leach Pads | | Total |
| Current | $ | 566 | | | $ | 179 | | | $ | 745 | | | $ | 746 | | | $ | 233 | | | $ | 979 | |
| Non-current | 1,692 | | | 145 | | | 1,837 | | | 1,532 | | | 403 | | | 1,935 | |
| Total | $ | 2,258 | | | $ | 324 | | | $ | 2,582 | | | $ | 2,278 | | | $ | 636 | | | $ | 2,914 | |
___________________________
(1)During the first quarter of 2024, certain non-core assets were determined to meet the criteria for held for sale. As a result, the related assets, including Stockpiles and ore on leach pads of $545, and liabilities were reclassified to Current assets held for sale and Current liabilities held for sale, respectively. Refer to Note 5 for additional information.
NOTE 16 DEBT
Scheduled minimum debt repayments are as follows:
| | | | | |
| At June 30,
2023 |
Year Ending December 31, | |
2023 (for the remainder of 2023) | $ | — | |
2024 | — | |
2025 | — | |
2026 | — | |
2027 | — | |
Thereafter | 5,624 | |
Total face value of debt | 5,624 | |
Unamortized premiums, discounts, and issuance costs | (50) | |
Debt | $ | 5,574 | |
| | | | | |
| At March 31,
2024 |
| Year Ending December 31, | |
| 2024 (for the remainder of 2024) | $ | — | |
| 2025 | — | |
| 2026 | 1,000 | |
| 2027 | — | |
| 2028 | — | |
| Thereafter | 8,274 | |
| Total face value of debt | 9,274 | |
| Unamortized premiums, discounts, and issuance costs | (341) | |
| Debt | $ | 8,933 | |
In connection with the Newcrest transaction, the Company acquired bilateral bank debt facilities held with 13 banks. The bilateral bank debt facilities had a total borrowing capacity of $2,000, of which $1,923 was outstanding as at December 31, 2023, and $462 due February 7, 2024, $769 due March 1, 2024, and $692 due March 1, 2026. On February 7, 2024, the Company repaid the borrowing capacity of $462.
On February 15, 2024, the Company completed an amendment and restatement of its existing $3,000 revolving credit agreement dated as of April 4, 2019 (the “Existing Credit Agreement”). The Existing Credit Agreement was entered into with a syndicate of financial institutions and provided for borrowings in U.S. dollars and contained a letter of credit sub-facility. Per the amendment, the expiration date of the credit facility was extended from March 30, 2026 to February 15, 2029 and the borrowing capacity was increased to $4,000. Interest is based on Term SOFR plus a credit spread adjustment and margin. Facility fees vary based on the credit ratings of the Company’s senior, uncollateralized, non-current debt. Debt covenants under the amendment are substantially the same as the Existing Credit Agreement.
On February 20, 2024, the Company utilized its $4,000 revolving credit agreement to repay the remaining $1,461 owed on the bilateral bank debt facilities.
On March 7, 2024, the Company issued $2,000 unsecured Senior Notes comprised of $1,000 due March 15, 2026 (“2026 Senior Notes”) and $1,000 due March 15, 2034 ("2034 Senior Notes"). Net proceeds from the 2026 and 2034 Senior Notes were $1,980. Interest will be paid semi-annually at a rate of 5.30% and 5.35% per annum for the 2026 and the 2034 Senior Notes,
NEWMONT CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(unaudited, dollars in millions, except per share, per ounce and per pound amounts)
respectively. The proceeds from this issuance were used to repay the drawdown on the revolving credit facility resulting in no amounts outstanding on the revolving credit facility as of March 31, 2024.
NOTE 1517 OTHER LIABILITIES
| | At June 30,
2023 | | At December 31,
2022 |
| At March 31,
2024 | | | At March 31,
2024 | | At December 31,
2023 |
| Other current liabilities: | Other current liabilities: | | | |
| Reclamation and remediation liabilities | Reclamation and remediation liabilities | $ | 511 | | | $ | 526 | |
| Accrued operating costs | 293 | | | 370 | |
| Reclamation and remediation liabilities | |
| Reclamation and remediation liabilities | |
Accrued operating costs (1) | |
| Accrued capital expenditures | Accrued capital expenditures | 228 | | | 221 | |
Payables to NGM (1) | 71 | | | 73 | |
Payables to NGM (2) | |
Stamp duty on Newcrest transaction (3) | |
Other (2)(4) | Other (2)(4) | 461 | | | 409 | |
| $ | 1,564 | | | $ | 1,599 | |
| $ | |
| | Other non-current liabilities: | Other non-current liabilities: | |
Income and mining taxes (3) | $ | 220 | | | $ | 206 | |
Other (4) | 206 | | | 224 | |
| $ | 426 | | | $ | 430 | |
| Other non-current liabilities: | |
| Other non-current liabilities: | |
Income and mining taxes (5) | |
Income and mining taxes (5) | |
Income and mining taxes (5) | |
Other (6) | |
| $ | |
(1)Includes an estimated compensation payment to the Worsley JV related to the waiver of certain rights within the cross-operation agreement that confers priority to the bauxite operations at the Boddington mine.
(2)Primarily consists of amounts due to NGM representing Barrick's 61.5% proportionate share of the amount owed to NGM for gold and silver purchased by Newmont. Newmont’s 38.5% share of such amounts is eliminated upon proportionate consolidation of its interest in NGM. Receivables for Newmont's 38.5% proportionate share related to NGM's activities with Barrick are included in Other current assets.
(2)(3)Incurred as a result of the Newcrest transaction. In the first quarter of 2024, $291 was paid. Refer to Note 3 for further information on the Newcrest transaction.
(4)Primarily consists of accrued interest on debt, accrued royalties and the current portion of the silver streaming agreement liability, royalties, and accrued interest on debt.liability.
(3)(5)Primarily consists of unrecognized tax benefits, including penalties and interest.
(4)(6)Primarily consists of the non-current portion of the Norte Abierto deferred payments and operating lease liabilities.
NOTE 1618 ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)
| | Unrealized Gain (Loss) on Investment Securities, net | | Foreign Currency Translation Adjustments | | Pension and Other Post-retirement Benefit Adjustments | | Unrealized Gain (Loss) on Hedge Instruments | | Total |
| Balance at December 31, 2022 | $ | (1) | | | $ | 126 | | | $ | (27) | | | $ | (69) | | | $ | 29 | |
| Unrealized Gain (Loss) on Marketable Debt Securities | | | Unrealized Gain (Loss) on Marketable Debt Securities | | Foreign Currency Translation Adjustments | | Pension and Other Post-retirement Benefit Adjustments | | Unrealized Gain (Loss) on Hedge Instruments | | Total |
| Balance at December 31, 2023 | |
| Net current-period other comprehensive income (loss): | Net current-period other comprehensive income (loss): | |
| Gain (loss) in other comprehensive income (loss) before reclassifications | |
| Gain (loss) in other comprehensive income (loss) before reclassifications | |
| Gain (loss) in other comprehensive income (loss) before reclassifications | Gain (loss) in other comprehensive income (loss) before reclassifications | (1) | | | (5) | | | 1 | | | (10) | | | (15) | |
(Gain) loss reclassified from accumulated other comprehensive income (loss) | (Gain) loss reclassified from accumulated other comprehensive income (loss) | — | | | — | | | (4) | | | 3 | | | (1) | |
| Other comprehensive income (loss) | Other comprehensive income (loss) | (1) | | | (5) | | | (3) | | | (7) | | | (16) | |
| Balance at June 30, 2023 | $ | (2) | | | $ | 121 | | | $ | (30) | | | $ | (76) | | | $ | 13 | |
| Balance at March 31, 2024 | |
NEWMONT CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(unaudited, dollars in millions, except per share, per ounce and per pound amounts)
NOTE 1719 NET CHANGE IN OPERATING ASSETS AND LIABILITIES
Net cash provided by (used in) operating activities of continuing operations attributable to the net change in operating assets and liabilities is composed of the following: | | | | | | | | | | | |
| Six Months Ended
June 30, |
| 2023 | | 2022 |
| Decrease (increase) in operating assets: | | | |
| Trade and other receivables | $ | 175 | | | $ | 45 | |
| Inventories, stockpiles and ore on leach pads | (261) | | | (47) | |
| Other assets | 15 | | | (72) | |
| Increase (decrease) in operating liabilities: | | | |
| Accounts payable | (84) | | | 55 | |
| Reclamation and remediation liabilities | (111) | | | (101) | |
| Accrued tax liabilities | (91) | | | (347) | |
| Other accrued liabilities | (112) | | | (35) | |
| Net change in operating assets and liabilities | $ | (469) | | | $ | (502) | |
| | | | | | | | | | | |
| Three Months Ended
March 31, |
| 2024 (1) | | 2023 |
| Decrease (increase) in operating assets: | | | |
| Trade and other receivables | $ | (84) | | | $ | (25) | |
| Inventories, stockpiles and ore on leach pads | (193) | | | (171) | |
| Other assets | (7) | | | 19 | |
| Increase (decrease) in operating liabilities: | | | |
| Accounts payable | (91) | | | 19 | |
| Reclamation and remediation liabilities | (59) | | | (46) | |
| Accrued tax liabilities | 90 | | | 1 | |
Other accrued liabilities (2) | (322) | | | (159) | |
| Net change in operating assets and liabilities | $ | (666) | | | $ | (362) | |
___________________________
(1)During the first quarter of 2024, certain non-core assets were determined to meet the criteria for assets held for sale. As a result, the related assets and liabilities were reclassified to Current assets held for sale and Current liabilities held for sale, respectively. Amounts herein reflect the net change in the related operating assets and liabilities prior to being reclassified as held for sale. Refer to Note 5 for additional information.
(2)For the three months ended March 31, 2024, primarily consists of payment of $291 for stamp duty tax largely accrued in the fourth quarter of 2023 in connection with the Newcrest transaction.
NOTE 1820 COMMITMENTS AND CONTINGENCIES
General
Estimated losses from contingencies are accrued by a charge to income when information available prior to issuance of the financial statements indicates that it is probable that a liability could be incurred, and the amount of the loss can be reasonably estimated. Legal expenses associated with the contingency are expensed as incurred. If a loss contingency is not probable or reasonably estimable, disclosure of the contingency and estimated range of loss, if determinable, is made in the financial statements when it is at least reasonably possible that a material loss could be incurred.
Operating Segments
The Company’s operating and reportable segments are identified in Note 3.4. Except as noted in this paragraph, all of the Company’s commitments and contingencies specifically described herein are included in Corporate and Other. The Yanacocha matters relate to the Yanacocha reportable segment. The Newmont Ghana Gold and Newmont Golden Ridge matters relate to the Ahafo and Akyem reportable segments, respectively. The CC&V matter relates to the CC&V reportable segment. The Mexico taxGoldcorp Canada matter relates to the PeñasquitoPorcupine reportable segment. The Cadia matter relates to the Cadia reportable segment.
Environmental Matters
Refer to Note 57 for further information regarding reclamation and remediation. Details about certain significant matters are discussed below.
Minera Yanacocha S.R.L. - 100% Newmont Owned
In early 2015 and again in June 2017, the Peruvian government agency responsible for certain environmental regulations, the Ministry of the Environment (“MINAM”),MINAM, issued proposed modifications to water quality criteria for designated beneficial uses which apply to mining companies, including Yanacocha. These criteria modified the in-stream water quality criteria pursuant to which Yanacocha has been designing water treatment processes and infrastructure. In December 2015, MINAM issued the final regulation that modified the water quality standards. These Peruvian regulations allow time to formulate a compliance plan and make any necessary changes to achieve compliance.
In February 2017, Yanacocha submitted a modification to its previously approved compliance achievement plan to the MINEM. The Company did not receive a response or comments to this submission until April 2021. During this interim period, Yanacocha separately submitted an Environmental Impact Assessment ("EIA") modification considering the ongoing operations and the projects to be developed and obtained authorization from MINEM for such projects. This authorization included a deadline for compliance with the modified water quality criteria by January 2024. In May 2022, Yanacocha submitted a proposed modification to this plan requesting an extension of time for coming into full compliance with the new regulations into 2027. In June 2023, Yanacocha received approval of its updated compliance plan from MINEM and was granted an extension of time to June 2026 to achieve compliance. The Company is currently discussing with MINEMappealed this approval to the request forMining Council requesting the regulatory extension until 2027.2027, and in April 2024, MINEM approved the compliance schedule.
NEWMONT CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(unaudited, dollars in millions, except per share, per ounce and per pound amounts)
The Company currently operates five water treatment plants at Yanacocha that have been and currently meet all currently applicable water discharge requirements. The Company is conducting detailed studies to better estimate water management and other closure activities that will ensure water quality and quantity discharge requirements, including the modifications promulgated by MINAM, as referenced above, will be met. This also includes performing a comprehensive update to the Yanacocha reclamation plan to
NEWMONT CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(unaudited, dollars in millions, except per share, per ounce and per pound amounts)
address changes in closure activities and estimated closure costs while preserving optionality for potential future projects at Yanacocha. These ongoing studies, which will extend beyond the current year, continue to evaluate and revise assumptions and estimated costs of changes to the reclamation plan. While certain estimated costs remain subject to revision, the Company’s current asset retirement obligation includes plans for the construction and post-closure management of two new water treatment plants and initial consideration of known risks (including the associated risk that these water treatment estimates could change in the future as more work is completed). The ultimate construction costs of the two water treatment plants remain highly uncertain as ongoing study work and assessment of opportunities that incorporates the latest design considerations remain in progress. These and other additional risks and contingencies that are the subject of ongoing studies, including, but not limited to, a comprehensive review of the Company's tailings storage facility management, review of Yanacocha’s water balance and storm water management system, and review of post-closure management costs, could result in future material increases to the reclamation obligation at Yanacocha.
Cripple Creek & Victor Gold Mining Company LLC - 100% Newmont Owned
In December 2021, Cripple Creek & Victor Gold Mining Company LLC (“CC&V”, a wholly-owned subsidiary of the Company) entered into a Settlement Agreement (“Settlement Agreement”) with the Water Quality Control Division of the Colorado Department of Public Health and Environment (the “Division”) with a mutual objective of resolving issues associated with the new discharge permits issued by the Division in January 2021 for the historic Carlton Tunnel. The Carlton Tunnel was a historic tunnel completed in 1941 with the purpose of draining the southern portion of the mining district, subsequently consolidated by CC&V. CC&V has held discharge permits for the Carlton Tunnel since 1983, but the January 2021 new permitspermit updates contained new water quality limits. The Settlement Agreement involves the installation of interim passive water treatment and ongoing monitoring over the next three years, and then more long-term water treatment installed with target compliance by November 2027. In 2022, the Company studied various interim passive water treatment options, reported the study results to the Division, and based on an evaluation of additional semi-passive options that involve the usage of power at the portal, updated the remediation liability to $20.$20 in 2022. CC&V continues to study alternative long-term remediation plans for water discharged from the Carlton Tunnel.Tunnel, and as such, a compliance extension request was submitted in July 2023 to allow additional time for proper assessment of treatment alternatives. The Company is also working with regulators on the Discharger Specific Variance to identify highest feasible alternative treatment in the context, based on limits such as area topography. Depending on the remediation plans that may ultimately be agreed with the Division, a material adjustment to the remediation liability may be required.
Dawn Mining Company LLC (“Dawn”) - 58.19% Newmont Owned
Midnite mine site and Dawn mill site. Dawn previously leased an open pit uranium mine, currently inactive, on the Spokane Indian Reservation in the State of Washington. The mine site is subject to regulation by agencies of the U.S. Department of Interior (the Bureau of Indian Affairs and the Bureau of Land Management), as well as the EPA.
As per the Consent Decree approved by the U.S. District Court for the Eastern District of Washington on January 17, 2012, the following actions were required of Newmont, Dawn, the Department of the Interior and the EPA: (i) Newmont and Dawn would design, construct and implement the cleanup plan selected by the EPA in 2006 for the Midnite mine site; (ii) Newmont and Dawn would reimburse the EPA for its past costs associated with overseeing the work; (iii) the Department of the Interior would contribute a lump sum amount toward past EPA costs and future costs related to the cleanup of the Midnite mine site; (iv) Newmont and Dawn would be responsible for all future EPA oversight costs and Midnite mine site cleanup costs; and (v) Newmont would post a surety bond for work at the site.
During 2012, the Department of Interior contributed its share of past EPA costs and future costs related to the cleanup of the Midnite mine site. In 2016, Newmont completed the remedial design process, with the exception of the new WTP design which was awaiting the approval of the new NPDES permit. Subsequently, the new NPDES permit was received in 2017 and the WTP design commenced in 2018. The EPA completed their assessment and approval ofapproved the WTP design in 2021 and Newmont has selected contractors for the construction of the new water treatment plant and effluent pipeline.2021. Construction of the effluent pipeline began in 2021, and construction of the new WTP began in 2022. Both projects are scheduled to be completed in 2024.
The Dawn mill site is regulated by the Washington Department of Health (the "WDOH") and is in the process of being closed in accordance with the federal Uranium Mill Tailings Radiation Control Act, and associated Washington state regulations. Remediation at the Dawn mill site began in 2013. The Tailing Disposal Area 1-4 reclamation earthworks component was completed during 2017 with the embankment erosion protection completed in the second quarter of 2018. The remaining closure activities will consist primarily of finalizing an Alternative Concentration Limit application (the "ACL application") submitted in 2020 to the WDOH to address groundwater issues, and also evaporating the remaining balance of process water at the site. In the fourth quarter of 2022, the WDOH provided comments on the ACL application, which Newmont is evaluating and conducting studies to better understand and respond to the comments provided by the WDOH. These studies and the related comment process will extend beyond the current year and could result in future material increases to the remediation obligation.
NEWMONT CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(unaudited, dollars in millions, except per share, per ounce and per pound amounts)
The remediation liability for the Midnite mine site and Dawn mill site is approximately $178,$210, assumed 100% by Newmont, at June 30, 2023.March 31, 2024.
Goldcorp Canada Ltd. - 100% Newmont Owned
Porcupine mine site.The Porcupine complex is comprised of active open pit and underground mining operations as well as inactive, legacy sites from its extensive history of mining gold in and around the city of Timmins, Ontario since the early 1900s. As a result of these primarily historic mining activities, there are mine hazards in the area that could require some form of reclamation. The
NEWMONT CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(unaudited, dollars in millions, except per share, per ounce and per pound amounts)
Company is conducting studies to better catalog, prioritize, and update its existing information of these historical mine hazards, to inform its closure plans and estimated closure costs. TheseBased on work performed during 2023, a $46 reclamation adjustment was recorded at December 31, 2023, however, on-going studies will extend beyond the current year and could result in future material increases to the reclamation obligation at Porcupine.
Cadia Holdings Pty Ltd. - 100% Newmont Owned
Cadia mine site. Cadia Holdings Pty Ltd. (“Cadia Holdings”) is a wholly owned subsidiary of Newcrest, which was acquired by Newmont in November 2023. The mine site is subject to regulations by the New South Wales Environment Protection Authority (the “NSW EPA”). During the quarter ended June 2023, the NSW EPA issued variations to its Environment Protection License (“EPL”), a Prevention Notice and Notices to Provide Information regarding the management of, and investigation into potential breaches relating to, dust emissions and other air pollutants from Cadia Holdings’ tailings storage facilities and ventilation rises. The license variations largely formalized the actions Cadia Holdings had developed in consultation with the NSW EPA and was already undertaking across a range of measures. Cadia Holdings received a letter from the NSW EPA in June 2023 requiring it to immediately comply with specific statutory requirements and EPL conditions. Adjustments were implemented underground, including a reduction in mining rates, modifications to the ventilation circuit and the installation of additional dust sprays and spray curtains. Additional dust collection units were subsequently installed enabling normal mining rates to be restored.
In August 2023, the NSW EPA commenced proceedings in the Land and Environment Court of NSW (the “NSW Land and Environment Court”) against Cadia Holdings, alleging that air emissions from Cadia on or about March 1, 2022 exceeded the standard of concentration for total solid particles permitted under applicable laws due to the use of surface exhaust fans at the mine. On September 29, 2023, Cadia Holdings entered a plea of guilty and the NSW Land and Environmental Court listed the case for a sentencing hearing on June 21, 2024. On October 13, 2023, the NSW EPA commenced additional proceedings in the NSW Land and Environment Court against Cadia Holdings, alleging two additional contraventions of applicable air emissions requirements between November 3 and 5, 2021 and May 24 and 25, 2023 and two contraventions related to alleged air pollution from tailings storage facilities on October 13 and 31, 2022. On November 24, 2023, Cadia Holdings entered a plea of guilty to the two additional charges relating to applicable air emissions requirements and the NSW Land and Environmental Court listed the case for a sentencing hearing on June 21, 2024. The proceedings related to alleged air pollution from Cadia Holdings’ tailings storage facilities are adjourned for further directions on May 17, 2024. The NSW EPA’s investigation regarding the management of air emissions from the mine is ongoing.
While no specific relief has been sought by the NSW EPA in its proceeding against Cadia Holdings before the NSW Land and Environmental Court, the court can impose penalties.
Other Legal Matters
Newmont Corporation, as well as Newmont Canada Corporation, and Newmont Canada FN Holdings ULC – 100% Newmont Owned
Kirkland Lake Gold Inc., which was acquired by Agnico Eagle Mines Limited in 2022 (still referred to herein as “Kirkland” for ease of reference), owns certain mining and mineral rights in northeastern Ontario, Canada, referred to here as the Holt-McDermott property, on which it suspended operations in April 2020. A subsidiary of the Company has a retained royalty obligation (“Holt royalty obligation”) to Royal Gold, Inc. (“Royal Gold”) for production on the Holt-McDermott property. In August 2020, the Company and Kirkland signed a Strategic Alliance Agreement (the “Kirkland Agreement”). As part of the Kirkland Agreement, the Company purchased an option (the “Holt option”) for $75 from Kirkland for the mining and mineral rights subject to the Holt royalty obligation. The Company has the right to exercise the Holt option and acquire ownership to the mineral interests subject to the Holt royalty obligation in the event Kirkland intends to resume operations and process material subject to the obligation. Kirkland has the right to assume the Company’s Holt royalty obligation at any time, in which case the Holt option would terminate.
On August 16, 2021, International Royalty Corporation (“IRC”), a wholly-owned subsidiary of Royal Gold, filed an action in the Supreme Court of Nova Scotia against Newmont Corporation, Newmont Canada Corporation, Newmont Canada FN Holdings ULC (collectively "Newmont"), and certain Kirkland defendants (collectively "Kirkland"). IRC alleges the Kirkland Agreement is oppressive to the interests of Royal Gold under the Nova Scotia Companies Act and the Canada Business Corporations Act, and that, by entering into the Kirkland Agreement, Newmont breached its contractual obligations to Royal Gold. IRC seeks declaratory relief, and $350 in alleged royalty payments that it claims Newmont expected to pay under the Holt royalty obligation, but for the Kirkland Agreement. Kirkland filed a motion seeking dismissal of the case against it, which the court granted in October 2022. Newmont submitted its statement of defense on February 27, 2023.2023, and a motion for summary judgment on January 12, 2024. The motion for summary judgment was
NEWMONT CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(unaudited, dollars in millions, except per share, per ounce and per pound amounts)
heard before the Court on February 27 and 29, 2024. Newmont intends to vigorously defend this matter but cannot reasonably predict the outcome.
NWG Investments Inc. v. Fronteer Gold Inc.
In April 2011, Newmont acquired Fronteer Gold Inc. (“Fronteer”).
Fronteer acquired NewWest Gold Corporation (“NewWest Gold”) in September 2007. At the time of that acquisition, NWG Investments Inc. (“NWG”) owned approximately 86% of NewWest Gold and an individual named Jacob Safra owned or controlled 100% of NWG. Prior to its acquisition of NewWest Gold, Fronteer entered into a June 2007 lock-up agreement with NWG providing that, among other things, NWG would support Fronteer’s acquisition of NewWest Gold. At that time, Fronteer owned approximately 47% of Aurora Energy Resources Inc. (“Aurora”), which, among other things, had a uranium exploration project in Labrador, Canada.
NWG contends that, during the negotiations leading up to the lock-up agreement, Fronteer represented to NWG, among other things, that Aurora would commence uranium mining in Labrador by 2013, that this was a firm date, that Aurora faced no current environmental issues in Labrador and that Aurora’s competitors faced delays in commencing uranium mining. NWG further contends that it entered into the lock-up agreement and agreed to support Fronteer’s acquisition of NewWest Gold in reliance upon these purported representations. On October 11, 2007, less than three weeks after the Fronteer-NewWest Gold transaction closed, a member of the Nunatsiavut Assembly introduced a motion calling for the adoption of a moratorium on uranium mining in Labrador. On April 8, 2008, the Nunatsiavut Assembly adopted a three-year moratorium on uranium mining in Labrador. NWG contends that Fronteer was aware during the negotiations of the NWG/Fronteer lock-up agreement that the Nunatsiavut Assembly planned on adopting this moratorium and that its adoption would preclude Aurora from commencing uranium mining by 2013, but Fronteer nonetheless fraudulently induced NWG to enter into the lock-up agreement.
On September 24, 2012, NWG served a summons and complaint on the Company, and then amended the complaint to add Newmont Canada Holdings ULC as a defendant. The complaint also named Fronteer Gold Inc. and Mark O’Dea as defendants. The complaint sought rescission of the merger between Fronteer and NewWest Gold and $750 in damages. In August 2013 the Supreme Court of New York, New York County issued an order granting the defendants’ motion to dismiss on forum non conveniens. Subsequently, NWG filed a notice of appeal of the decision and then a notice of dismissal of the appeal on March 24, 2014.
On February 26, 2014, NWG filed a lawsuit in Ontario Superior Court of Justice against Fronteer Gold Inc., Newmont Mining Corporation, Newmont Canada Holdings ULC, Newmont FH B.V. and Mark O’Dea. The Ontario complaint is based upon substantially the same allegations contained in the New York lawsuit with claims for fraudulent and negligent misrepresentation. NWG seeks disgorgement of profits since the close of the NWG deal on September 24, 2007 and damages in the amount of C$1,200. Newmont, along with other defendants, served the plaintiff with its statement of defense on October 17, 2014. Newmont, along with the other defendants, filed a motion to dismiss based on delay on November 29, 2022. On August 22, 2023, the Court granted the motion and dismissed the Ontario complaint for delay. NWG filed an appeal with the Court of Appeal for Ontario on September 21, 2023. On January 9, 2024, the Ontario Superior Court of Justice awarded Newmont C$0.5 in costs. The appeal remains pending and will be heard on April 29, 2024. Newmont intends to vigorously defend this matter but cannot reasonably predict the outcome.
NEWMONT CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(unaudited, dollars in millions, except per share, per ounce and per pound amounts)
Newmont Ghana Gold Limited and Newmont Golden Ridge Limited - 100% Newmont Owned
On December 24, 2018, two individual plaintiffs, who are members of the Ghana Parliament (“Plaintiffs”), filed a writ to invoke the original jurisdiction of the Supreme Court of Ghana. On January 16, 2019, Plaintiffs filed the Statement of Plaintiff’s Case outlining the details of the Plaintiff’s case and subsequently served Newmont Ghana Gold Limited (“NGGL”) and Newmont Golden Ridge Limited (“NGRL”) along with the other named defendants, the Attorney General of Ghana, the Minerals Commission of Ghana and 33 other mining companies with interests in Ghana. The Plaintiffs allege that under article 268 of the 1992 Constitution of Ghana, the mining company defendants are not entitled to carry out any exploitation of minerals or other natural resources in Ghana, unless their respective transactions, contracts or concessions are ratified or exempted from ratification by the Parliament of Ghana. Newmont’s current mining leases are both ratified by Parliament; NGGL June 13, 2001 mining lease, ratified by Parliament on October 21, 2008, and NGRL January 19, 2010 mining lease; ratified by Parliament on December 3, 2015. The writ alleges that any mineral exploitation prior to Parliamentary ratification is unconstitutional. The Plaintiffs seek several remedies including: (i) a declaration as to the meaning of constitutional language at issue; (ii) an injunction precluding exploitation of minerals for any mining company without prior Parliamentary ratification; (iii) a declaration that all revenue as a result of violation of the Constitution shall be accounted for and recovered via cash equivalent; and (iv) an order that the Attorney General and Minerals Commission submit all un-ratified mining leases, undertakings or contracts to Parliament for ratification. Newmont intends to vigorously defend this matter but cannot reasonably predict the outcome.
Other Commitments and Contingencies
As part of its ongoing business and operations, the Company and its affiliates are required to provide surety bonds, bank letters of credit and bank guarantees as financial support for various purposes, including environmental remediation, reclamation, exploration permitting, workers compensation programs and other general corporate purposes. At March 31, 2024 and December 31, 2023, there were $2,218 and $2,123, respectively, of outstanding letters of credit, surety bonds and bank guarantees. The obligations associated with these instruments are generally related to performance requirements that the Company addresses through its ongoing
NEWMONT CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(unaudited, dollars in millions, except per share, per ounce and per pound amounts)
operations. As the specific requirements are met, the beneficiary of the associated instrument cancels and/or returns the instrument to the issuing entity. Certain of these instruments are associated with operating sites with long-lived assets and will remain outstanding until closure. Generally, bonding requirements associated with environmental regulation are becoming more restrictive. However, the Company believes it is in compliance with all applicable bonding obligations and will be able to satisfy future bonding requirements through existing or alternative means, as they arise.
Newmont is from time to time involved in various legal proceedings related to its business. Except in the above described proceedings, management does not believe that adverse decisions in any pending or threatened proceeding or that amounts that may be required to be paid by reason thereof will have a material adverse effect on the Company’s financial condition or results of operations.
Refer to Note 25 of the Consolidated Financial Statements included in Part II of the Company's Annual Report on Form 10-K for the year ended December 31, 20222023 filed with the SEC on February 23, 202329, 2024 for information on the Company's deferred and contingent payments.
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (dollars in millions, except per share, per ounce and per pound amounts)
The following Management’s Discussion and Analysis of Consolidated Financial Condition and Results of Operations (“MD&A”) provides information that management believes is relevant to an assessment and understanding of the consolidated financial condition and results of operations of Newmont Corporation, a Delaware corporation, and its subsidiaries (collectively, “Newmont,” the “Company,” “our” and “we”). Please see Non-GAAP Financial Measures, below, for the non-GAAP financial measures used in this MD&A by the Company.
This item should be read in conjunction with our interim unaudited Condensed Consolidated Financial Statements and the notes thereto included in this quarterly report. Additionally, the following discussion and analysis should be read in conjunction with Management’s Discussion and Analysis of Consolidated Financial Condition and Results of Operations and the Consolidated Financial Statements included in Part II of our Annual Report on Form 10-K for the year ended December 31, 20222023 filed with the SEC on February 23, 2023.29, 2024.
Overview
Newmont is the world’s leading gold company and is the only gold company included in the S&P 500 Index and the Fortune 500 list of companies. We have been included in the Dow Jones Sustainability Index-World since 2007 and have adopted the World Gold Council’s Conflict-Free Gold Policy. Since 2015, Newmont has been ranked as the mining and metal sector's top gold miner by the S&P Global Corporate Sustainability Assessment. Newmont was ranked the top miner in 3BL Media’s 100 Best Corporate Citizens list which ranks the 1,000 largest publicly traded U.S. companies on ESG transparency and performance since 2020.
We are primarily engaged in the exploration for and acquisition of gold properties, some of which may contain copper, silver, lead, zinc or other metals. We have significant operations and/or assets in the U.S., Canada, Mexico, Dominican Republic, Peru, Suriname, Argentina, Chile, Australia, Papua New Guinea, Ecuador, Fiji, and Ghana. Our goal is to create value and improve lives through sustainable and responsible mining.
Refer to the discussion of Risk and Uncertainties within Note 2 of the Condensed Consolidated Financial Statements as well as the Consolidated Financial Results, Results of Consolidated Operations, Liquidity and Capital Resources and Non-GAAP Financial Measures sections presented below, for information about the continued impacts from the geopolitical and macroeconomic pressures including recent turmoil in the banking sector, inflation, effects of certain countermeasures taken by central banks, and the potential for further supply chain disruptions relating to the Russian invasion of Ukraine and the COVID-19 pandemic, as well as an uncertain and evolving labor market.
In February 2024, based on a comprehensive review of the secondCompany’s portfolio of assets, the Company’s Board of Directors approved a portfolio optimization program to divest six non-core assets and a development project. The non-core assets to be divested include CC&V, Musselwhite, Porcupine, Éléonore, Telfer, Akyem, and a development project in Canada. In February 2024, the Company concluded that these non-core assets and the development project met the accounting requirements to be presented as held for sale in the first quarter of 2023,2024, based on progress made through our active sales program and management’s expectation that the Company announcedsale is probable and will be completed within 12 months. These assets were recorded at the deferrallower of the full-funds investment decisioncarrying value or fair value, less costs to sell, resulting in a write-down of $352. The write-down resulted in a tax impact of $133, resulting in a total loss of $485 recognized for the Yanacocha Sulfides project in Peru, currently estimated to occur in 2026. With the delay of the Yanacocha Sulfides project, management will focus its effortsthree months ended March 31, 2024 within Loss on optimizing its allocation of funds to current operations and other capital commitments, while continuing to assess execution and project plan options, up to and including transitioning Yanacocha operations into full closure. Referassets held for sale. For further information, refer to Note 2 of5 to the Condensed Consolidated Financial Statements for further discussion.
We continue to focus on improving safety and efficiency at our operations, maintaining leading ESG practices, and sustaining our global portfolio of longer-life, lower cost mines to generate the financial flexibility we need to strategically reinvest in the business, strengthen the Company’s investment-grade balance sheet and return cash to shareholders.Statements.
On June 7, 2023, the National Union of Mine and Metal Workers of the Mexican Republic (the "Union") notified the Company of a strike action. In response to the strike notice, the Company has suspended operations at Peñasquito. As of the date of this report filing, operations have not resumed and the Company is in ongoing discussions with the Union.
On May 14,November 6, 2023, the Company entered intocompleted its business combination transaction with Newcrest Mining Limited, a binding Scheme Implementation Deed (the “Transaction Agreement”public Australian mining company limited by shares ("Newcrest") to acquire, whereby Newmont, through Newmont Overseas Holdings Pty Ltd, an Australian proprietary company limited by shares (“Newmont Sub”), acquired all of the issued and outstanding ordinary shares of Newcrest Mining Limited ("Newcrest") in a fully stock transaction by wayfor total non-cash consideration of $13,549. Newcrest became a direct wholly owned subsidiary of Newmont Sub and an Australian court-approved Schemeindirect wholly owned subsidiary of Arrangement (the “Scheme”, and suchNewmont (such acquisition, the “Proposed Newcrest Transaction”“Newcrest transaction”). Under the terms of the Transaction Agreement, Newcrest shareholders will receive 0.400 of a share of Newmont’s common stock for each Newcrest common share and a special dividend of up to $1.10 per share,The combined company continues to be paid by Newcrest immediately prior totraded on the consummation ofNew York Stock Exchange under the Proposed Newcrest Transaction.ticker NEM. The Proposed Newcrest Transaction, whichcombined company is subject to approval by both Newmont stockholdersalso listed on the Toronto Stock Exchange under the ticker NGT, on the Australian Securities Exchange under the ticker NEM, and Newcrest shareholders and other customary conditions and regulatory approvals, is expected to close inon the fourth quarter of 2023.
In January 2023,Papua New Guinea Securities Exchange under the Company reevaluated its segments to reflect certain changes in the financialticker NEM. For further information, regularly reviewed by Newmont’s Chief Operating Decision Maker ("CODM") and determined that its reportable segments were each of its 12 mining operations and its 38.5% interest in Nevada Gold Mines ("NGM"), which is accounted for using the proportionate consolidation method. Segment results for the prior periods have been recast to reflect the change in reportable segments. Referrefer to Note 3 ofto the Condensed Consolidated Financial Statements for further information.
In February 2022, the Company completed the acquisition of Buenaventura's 43.65% noncontrolling interest in Minera Yanacocha S.R.L. ("Yanacocha") and sold its 46.94% ownership interest in Minera La Zanja S.R.L. ("La Zanja"). Additionally, in June
2022, the Company acquired the remaining 5% interest held by Sumitomo in exchange for cash consideration of $48, resulting in the Company obtaining 100% ownership interest in Yanacocha. Refer to Note 1 of the Condensed Consolidated Financial Statements for further details regarding these transactions.Statements.
For further information on acquisitions, divestitures, and asset sales impacting the comparability of our results, refer to Notes 1 and 79 to the Condensed Consolidated Financial Statements, respectively.
Consolidated Financial Results
The details of our Net income (loss) from continuing operations attributable to Newmont stockholders are set forth below:
| | | | | | | | | | | | | | | | | | | |
| Three Months Ended
June 30, | | Increase
(Decrease) | | |
| 2023 | | 2022 | | |
| Net income (loss) from continuing operations attributable to Newmont stockholders | $ | 153 | | | $ | 379 | | | $ | (226) | | | |
| Net income (loss) from continuing operations attributable to Newmont stockholders per common share, diluted | $ | 0.19 | | | $ | 0.48 | | | $ | (0.29) | | | |
| | Six Months Ended
June 30, | | Increase
(Decrease) | |
| 2023 | | 2022 | | |
| Three Months Ended
March 31, | |
| Three Months Ended
March 31, | |
| Three Months Ended
March 31, | |
| 2024 | |
| 2024 | |
| 2024 | |
| Net income (loss) from continuing operations attributable to Newmont stockholders | |
| Net income (loss) from continuing operations attributable to Newmont stockholders | |
| Net income (loss) from continuing operations attributable to Newmont stockholders | Net income (loss) from continuing operations attributable to Newmont stockholders | $ | 492 | | | $ | 811 | | | $ | (319) | | |
| Net income (loss) from continuing operations attributable to Newmont stockholders per common share, diluted | Net income (loss) from continuing operations attributable to Newmont stockholders per common share, diluted | $ | 0.62 | | | $ | 1.02 | | | $ | (0.40) | | |
| Net income (loss) from continuing operations attributable to Newmont stockholders per common share, diluted | |
| Net income (loss) from continuing operations attributable to Newmont stockholders per common share, diluted | |
The decrease in Net income (loss) from continuing operations attributable to Newmont stockholders for the three months ended June 30, 2023,March 31, 2024, compared to the same period in 2022,2023, is primarily due to a decrease inthe SalesLoss on assets held for sale resulting largely from lower gold sales volumes, which includes the impacts arising from (i) work stoppage at Peñasquito for the month of June 2023 due to a labor strike ("Peñasquito labor strike")$485 and (ii) lower production at Akyem to re-sequence the mine plan and temporarily suspend miningan increase in the main pit to make safety improvements and fortify the catch berms above the haul road into the pit. Additionally, the decrease in Net income (loss) from continuing operations attributable to Newmont stockholders was the result of higher income tax expense, partially offset by lower Costs applicable to sales, a decrease in unrealized losses on marketable equity securities, and lower Depreciation and amortization. Seethe current period (refer below for further information on the change in Costs applicable to sales and Depreciation and amortization).
The This decrease in Net income (loss) from continuing operations attributable to Newmont stockholders for the six months ended June 30, 2023, compared to the same period in 2022, is primarily due to a decreasewas partially offset by (i) an increase in Sales resulting from lowerhigher sales volumes for all metals except copper, largely asand a resulthigher average realized price for gold (refer below for information on the change in Sales), (ii) an increase toattributable net income of (i)$224 related to the Peñasquito labor strike; (ii) loweracquired Newcrest sites, and (iii) higher production at AkyemTanami as compared to re-sequence the mine plan and temporarily suspend mining in the main pit to make safety improvements and fortify the catch berms above the haul road into the pit; and (iii) lower production at Tanamiprior period due to significant rainfall and flooding in the Northern Territory and surrounding areas in early 2023 which resulted in transportation route closures into the mine ("Tanami rainfall event"). As a result, processing operations were paused for the majority of February 2023. During this time, mining operations continued, and ore was stockpiled and in late February, transportation routes were reopened, and processing operations were resumed. The Company is working with its insurers related to the business interruption that resulted from this event.
Additionally, the decrease in Net income (loss) from continuing operations attributable to Newmont stockholders for the six months ended June 30, 2023, compared to the same period in 2022, is also the result of higher income tax expense, partially offset by higher average realized prices for gold and silver, a non-cash pension settlement charge recognized in 2022, lower Depreciation and amortization, lower Costs applicable to sales, and the net gain recognized on the sale of the Triple Flag Precious Metals Corporation ("Triple Flag") investment, acquired during the first quarter of 2023 in exchange for the previously held Maverix Metals Inc. ("Maverix") investment, compared to the loss on the sale of the La Zanja equity method investment in 2022. See below for further information on the change in Costs applicable to sales and Depreciation and amortization.
The details and analyses of our Sales for all periods presented are set forth below. Refer to Note 46 of the Condensed Consolidated Financial Statements for further information.
| | Three Months Ended
June 30, | | Increase
(Decrease) | | Percent
Change |
| 2023 | | 2022 | |
| Three Months Ended
March 31, | | | Three Months Ended
March 31, | | Increase
(Decrease) | | Percent
Change |
| 2024 | |
| Gold | |
| Gold | |
| Gold | Gold | $ | 2,380 | | | $ | 2,722 | | | $ | (342) | | | (13) | % | $ | 3,341 | | | $ | | $ | 2,303 | | | $ | | $ | 1,038 | | | 45 | | 45 | % |
| Copper | Copper | 82 | | | 76 | | | 6 | | | 8 | |
| Silver | Silver | 124 | | | 140 | | | (16) | | | (11) | |
| Lead | Lead | 32 | | | 28 | | | 4 | | | 14 | |
| Zinc | Zinc | 65 | | | 92 | | | (27) | | | (29) | |
| $ | 2,683 | | | $ | 3,058 | | | $ | (375) | | | (12) | % |
| $ | | | $ | 4,023 | | | $ | 2,679 | | | $ | 1,344 | | | 50 | % |
| | | | | | | | | | | | | | | | | | | | | | | |
| Six Months Ended
June 30, | | Increase
(Decrease) | | Percent
Change |
| 2023 | | 2022 | | |
| Gold | $ | 4,683 | | | $ | 5,236 | | | $ | (553) | | | (11) | % |
| Copper | 192 | | | 175 | | | 17 | | | 10 | |
| Silver | 241 | | | 296 | | | (55) | | | (19) | |
| Lead | 64 | | | 72 | | | (8) | | | (11) | |
| Zinc | 182 | | | 302 | | | (120) | | | (40) | |
| $ | 5,362 | | | $ | 6,081 | | | $ | (719) | | | (12) | % |
| | Three Months Ended June 30, 2023 |
| Gold | | Copper | | Silver | | Lead | | Zinc |
| (ounces) | | (pounds) | | (ounces) | | (pounds) | | (pounds) |
| Three Months Ended March 31, 2024 | | | Three Months Ended March 31, 2024 |
| Gold | | | Gold | | Copper | | Silver | | Lead | | Zinc |
| (ounces) | | | (ounces) | | (pounds) | | (ounces) | | (pounds) |
| Consolidated sales: | Consolidated sales: | |
| Gross before provisional pricing and streaming impact | |
| Gross before provisional pricing and streaming impact | |
| Gross before provisional pricing and streaming impact | Gross before provisional pricing and streaming impact | $ | 2,390 | | | $ | 95 | | | $ | 115 | | | $ | 34 | | | $ | 100 | |
| Provisional pricing mark-to-market | Provisional pricing mark-to-market | (1) | | | (9) | | | 2 | | | — | | | (14) | |
| Silver streaming amortization | Silver streaming amortization | — | | | — | | | 15 | | | — | | | — | |
| Gross after provisional pricing and streaming impact | Gross after provisional pricing and streaming impact | 2,389 | | | 86 | | | 132 | | | 34 | | | 86 | |
| Treatment and refining charges | Treatment and refining charges | (9) | | | (4) | | | (8) | | | (2) | | | (21) | |
| Net | Net | $ | 2,380 | | | $ | 82 | | | $ | 124 | | | $ | 32 | | | $ | 65 | |
| Consolidated ounces (thousands)/pounds (millions) sold | 1,211 | | | 25 | | | 5,999 | | | 36 | | | 90 | |
Average realized price (per ounce/pound): (1) | |
Consolidated ounces/pounds sold (1)(2) | |
Average realized price (per ounce/pound): (3) | |
| Gross before provisional pricing and streaming impact | |
| Gross before provisional pricing and streaming impact | |
| Gross before provisional pricing and streaming impact | Gross before provisional pricing and streaming impact | $ | 1,974 | | | $ | 3.75 | | | $ | 19.17 | | | $ | 0.96 | | | $ | 1.12 | |
| Provisional pricing mark-to-market | Provisional pricing mark-to-market | (1) | | | (0.34) | | | 0.34 | | | — | | | (0.16) | |
| Silver streaming amortization | Silver streaming amortization | — | | | — | | | 2.56 | | | — | | | — | |
| Gross after provisional pricing and streaming impact | Gross after provisional pricing and streaming impact | 1,973 | | | 3.41 | | | 22.07 | | | 0.96 | | | 0.96 | |
| Treatment and refining charges | Treatment and refining charges | (8) | | | (0.15) | | | (1.51) | | | (0.04) | | | (0.23) | |
| Net | Net | $ | 1,965 | | | $ | 3.26 | | | $ | 20.56 | | | $ | 0.92 | | | $ | 0.73 | |
____________________________
(1)Amounts reported in millions except gold ounces, which are reported in thousands.
(2)For the three months ended March 31, 2024 the Company sold 36 thousand tonnes of copper, 29 thousand tonnes of lead, and 61 thousand tonnes of zinc.
(3)Per ounce/pound measures may not recalculate due to rounding.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended June 30, 2022 |
| Gold | | Copper | | Silver | | Lead | | Zinc |
| (ounces) | | (pounds) | | (ounces) | | (pounds) | | (pounds) |
| Consolidated sales: | | | | | | | | | |
| Gross before provisional pricing and streaming impact | $ | 2,754 | | | $ | 102 | | | $ | 148 | | | $ | 35 | | | $ | 150 | |
| Provisional pricing mark-to-market | (21) | | | (23) | | | (15) | | | (6) | | | (40) | |
| Silver streaming amortization | — | | | — | | | 20 | | | — | | | — | |
| Gross after provisional pricing and streaming impact | 2,733 | | | 79 | | | 153 | | | 29 | | | 110 | |
| Treatment and refining charges | (11) | | | (3) | | | (13) | | | (1) | | | (18) | |
| Net | $ | 2,722 | | | $ | 76 | | | $ | 140 | | | $ | 28 | | | $ | 92 | |
| Consolidated ounces (thousands)/pounds (millions) sold | 1,482 | | | 25 | | | 8,066 | | | 35 | | | 85 | |
Average realized price (per ounce/pound): (1) | | | | | | | | | |
| Gross before provisional pricing and streaming impact | $ | 1,858 | | | $ | 4.03 | | | $ | 18.41 | | | $ | 0.99 | | | $ | 1.76 | |
| Provisional pricing mark-to-market | (14) | | | (0.92) | | | (1.81) | | | (0.16) | | | (0.47) | |
| Silver streaming amortization | — | | | — | | | 2.45 | | | — | | | — | |
| Gross after provisional pricing and streaming impact | 1,844 | | | 3.11 | | | 19.05 | | | 0.83 | | | 1.29 | |
| Treatment and refining charges | (8) | | | (0.12) | | | (1.63) | | | (0.03) | | | (0.21) | |
| Net | $ | 1,836 | | | $ | 2.99 | | | $ | 17.42 | | | $ | 0.80 | | | $ | 1.08 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended March 31, 2023 |
| Gold | | Copper | | Silver | | Lead | | Zinc |
| (ounces) | | (pounds) | | (ounces) | | (pounds) | | (pounds) |
| Consolidated sales: | | | | | | | | | |
| Gross before provisional pricing and streaming impact | $ | 2,297 | | | $ | 105 | | | $ | 110 | | | $ | 35 | | | $ | 143 | |
| Provisional pricing mark-to-market | 17 | | | 9 | | | 2 | | | (2) | | | (4) | |
| Silver streaming amortization | — | | | — | | | 16 | | | — | | | — | |
| Gross after provisional pricing and streaming impact | 2,314 | | | 114 | | | 128 | | | 33 | | | 139 | |
| Treatment and refining charges | (11) | | | (4) | | | (11) | | | (1) | | | (22) | |
| Net | $ | 2,303 | | | $ | 110 | | | $ | 117 | | | $ | 32 | | | $ | 117 | |
Consolidated ounces/pounds sold (1)(2) | 1,208 | | | 26 | | | 6 | | | 36 | | | 99 | |
Average realized price (per ounce/pound): (3) | | | | | | | | | |
| Gross before provisional pricing and streaming impact | $ | 1,901 | | | $ | 3.99 | | | $ | 17.98 | | | $ | 0.95 | | | $ | 1.44 | |
| Provisional pricing mark-to-market | 14 | | | 0.33 | | | 0.30 | | | (0.06) | | | (0.04) | |
| Silver streaming amortization | — | | | — | | | 2.56 | | | — | | | — | |
| Gross after provisional pricing and streaming impact | 1,915 | | | 4.32 | | | 20.84 | | | 0.89 | | | 1.40 | |
| Treatment and refining charges | (9) | | | (0.14) | | | (1.67) | | | (0.03) | | | (0.22) | |
| Net | $ | 1,906 | | | $ | 4.18 | | | $ | 19.17 | | | $ | 0.86 | | | $ | 1.18 | |
____________________________
(1)Per ounce/pound measures may not recalculate due to rounding.Amounts reported in millions except gold ounces, which are reported in thousands.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Six Months Ended June 30, 2023 |
| Gold | | Copper | | Silver | | Lead | | Zinc |
| (ounces) | | (pounds) | | (ounces) | | (pounds) | | (pounds) |
| Consolidated sales: | | | | | | | | | |
| Gross before provisional pricing and streaming impact | $ | 4,687 | | | $ | 200 | | | $ | 225 | | | $ | 69 | | | $ | 243 | |
| Provisional pricing mark-to-market | 16 | | | — | | | 4 | | | (2) | | | (18) | |
| Silver streaming amortization | — | | | — | | | 31 | | | — | | | — | |
| Gross after provisional pricing and streaming impact | 4,703 | | | 200 | | | 260 | | | 67 | | | 225 | |
| Treatment and refining charges | (20) | | | (8) | | | (19) | | | (3) | | | (43) | |
| Net | $ | 4,683 | | | $ | 192 | | | $ | 241 | | | $ | 64 | | | $ | 182 | |
| Consolidated ounces (thousands)/pounds (millions) sold | 2,419 | | | 51 | | | 12,123 | | | 72 | | | 189 | |
Average realized price (per ounce/pound): (1) | | | | | | | | | |
| Gross before provisional pricing and streaming impact | $ | 1,937 | | | $ | 3.87 | | | $ | 18.56 | | | $ | 0.96 | | | $ | 1.28 | |
| Provisional pricing mark-to-market | 7 | | | — | | | 0.32 | | | (0.03) | | | (0.09) | |
| Silver streaming amortization | — | | | — | | | 2.56 | | | — | | | — | |
| Gross after provisional pricing and streaming impact | 1,944 | | | 3.87 | | | 21.44 | | | 0.93 | | | 1.19 | |
| Treatment and refining charges | (8) | | | (0.14) | | | (1.59) | | | (0.04) | | | (0.23) | |
| Net | $ | 1,936 | | | $ | 3.73 | | | $ | 19.85 | | | $ | 0.89 | | | $ | 0.96 | |
____________________________(2)For the three months ended March 31, 2023 the Company sold 12 thousand tonnes of copper, 17 thousand tonnes of lead, and 45 thousand tonnes of zinc.
(1)Per ounce/pound measures may not recalculate due to rounding.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Six Months Ended June 30, 2022 |
| Gold | | Copper | | Silver | | Lead | | Zinc |
| (ounces) | | (pounds) | | (ounces) | | (pounds) | | (pounds) |
| Consolidated sales: | | | | | | | | | |
| Gross before provisional pricing and streaming impact | $ | 5,256 | | | $ | 194 | | | $ | 296 | | | $ | 79 | | | $ | 356 | |
| Provisional pricing mark-to-market | 2 | | | (14) | | | (12) | | | (5) | | | (18) | |
| Silver streaming amortization | — | | | — | | | 39 | | | — | | | — | |
| Gross after provisional pricing and streaming impact | 5,258 | | | 180 | | | 323 | | | 74 | | | 338 | |
| Treatment and refining charges | (22) | | | (5) | | | (27) | | | (2) | | | (36) | |
| Net | $ | 5,236 | | | $ | 175 | | | $ | 296 | | | $ | 72 | | | $ | 302 | |
| Consolidated ounces (thousands)/pounds (millions) sold | 2,811 | | | 46 | | | 15,718 | | | 77 | | | 205 | |
Average realized price (per ounce/pound): (1) | | | | | | | | | |
| Gross before provisional pricing and streaming impact | $ | 1,870 | | | $ | 4.24 | | | $ | 18.89 | | | $ | 1.03 | | | $ | 1.74 | |
| Provisional pricing mark-to-market | 1 | | | (0.31) | | | (0.75) | | | (0.06) | | | (0.09) | |
| Silver streaming amortization | — | | | — | | | 2.45 | | | — | | | — | |
| Gross after provisional pricing and streaming impact | 1,871 | | | 3.93 | | | 20.59 | | | 0.97 | | | 1.65 | |
| Treatment and refining charges | (8) | | | (0.12) | | | (1.74) | | | (0.03) | | | (0.18) | |
| Net | $ | 1,863 | | | $ | 3.81 | | | $ | 18.85 | | | $ | 0.94 | | | $ | 1.47 | |
____________________________
(1)(3)Per ounce/pound measures may not recalculate due to rounding.
The change in consolidated salesSales is due to:
| | Three Months Ended June 30, 2023 |
| 2023 vs. 2022 |
| Gold | | Copper | | Silver | | Lead | | Zinc |
| (ounces) | | (pounds) | | (ounces) | | (pounds) | | (pounds) |
| Three Months Ended March 31, | | | Three Months Ended March 31, |
| 2024 vs. 2023 | | | 2024 vs. 2023 |
| Gold | | | Gold | | Copper | | Silver | | Lead | | Zinc |
| (ounces) | | | (ounces) | | (pounds) | | (ounces) | | (pounds) |
| Increase (decrease) in consolidated ounces/pounds sold | Increase (decrease) in consolidated ounces/pounds sold | $ | (500) | | | $ | — | | | $ | (39) | | | $ | — | | | $ | 6 | |
| Increase (decrease) in average realized price | Increase (decrease) in average realized price | 156 | | | 7 | | | 18 | | | 5 | | | (30) | |
| Decrease (increase) in treatment and refining charges | Decrease (increase) in treatment and refining charges | 2 | | | (1) | | | 5 | | | (1) | | | (3) | |
| $ | (342) | | | $ | 6 | | | $ | (16) | | | $ | 4 | | | $ | (27) | |
| $ | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Six Months Ended June 30, |
| 2023 vs. 2022 |
| Gold | | Copper | | Silver | | Lead | | Zinc |
| (ounces) | | (pounds) | | (ounces) | | (pounds) | | (pounds) |
| Increase (decrease) in consolidated ounces/pounds sold | $ | (733) | | | $ | 23 | | | $ | (73) | | | $ | (4) | | | $ | (27) | |
| Increase (decrease) in average realized price | 178 | | | (3) | | | 10 | | | (3) | | | (86) | |
| Decrease (increase) in treatment and refining charges | 2 | | | (3) | | | 8 | | | (1) | | | (7) | |
| $ | (553) | | | $ | 17 | | | $ | (55) | | | $ | (8) | | | $ | (120) | |
For discussion regarding drivers impacting sales volumes by site, see Results of Consolidated Operations below.
The details of our Costs applicable to sales are set forth below. Refer to Note 34 of the Condensed Consolidated Financial Statements for further information.
| | Three Months Ended
June 30, | | Increase
(Decrease) | | Percent
Change |
| 2023 | | 2022 | |
| Three Months Ended
March 31, | | | Three Months Ended
March 31, | | Increase
(Decrease) | | Percent
Change |
| 2024 | |
| Gold | |
| Gold | |
| Gold | Gold | $ | 1,277 | | | $ | 1,381 | | | $ | (104) | | | (8) | % | $ | 1,690 | | | $ | | $ | 1,239 | | | $ | | $ | 451 | | | 36 | | 36 | % |
| Copper | Copper | 48 | | | 49 | | | (1) | | | (2) | |
| Silver | Silver | 95 | | | 155 | | | (60) | | | (39) | |
| Lead | Lead | 33 | | | 29 | | | 4 | | | 14 | |
| Zinc | Zinc | 90 | | | 94 | | | (4) | | | (4) | |
| $ | 1,543 | | | $ | 1,708 | | | $ | (165) | | | (10) | % |
| $ | | | $ | 2,106 | | | $ | 1,482 | | | $ | 624 | | | 42 | % |
The increase in Costs applicable to sales during the three months ended March 31, 2024, compared to the same period in 2023, is primarily due to the impact of sites acquired in the Newcrest transaction, which contributed $509 to Costs applicable to sales.
| | | | | | | | | | | | | | | | | | | | | | | |
| Six Months Ended
June 30, | | Increase
(Decrease) | | Percent
Change |
| 2023 | | 2022 | | |
| Gold | $ | 2,516 | | | $ | 2,565 | | | $ | (49) | | | (2) | % |
| Copper | 101 | | | 95 | | | 6 | | | 6 | |
| Silver | 177 | | | 252 | | | (75) | | | (30) | |
| Lead | 55 | | | 51 | | | 4 | | | 8 | |
| Zinc | 176 | | | 180 | | | (4) | | | (2) | |
| $ | 3,025 | | | $ | 3,143 | | | $ | (118) | | | (4) | % |
The increase in Costs applicable to sales during the three months ended March 31, 2024, compared to the same period in 2023, was further impacted by (i) a drawdown of inventory at Peñasquito, Yanacocha, NGM, Akyem, and Ahafo, (ii) higher royalties at Ahafo, and (iii) higher direct operating costs at Tanami driven by higher production in the current year due to the Tanami rainfall event in 2023. These increases were partially offset by a decrease in Costs applicable to sales during the three and six months ended June 30, 2023, compared to the same periods in 2022, is primarily due to (i) the profit-sharing agreement entered into by the Company during the second quarter of 2022 (the "Peñasquito Profit-Sharing Agreement"), which resulted in charges incurred in 2022 relating to 2021 site performance; (ii) the Peñasquito labor strike, which resulted in lower energy, materials and contracted services costs at Peñasquito; (iii) lower production at Akyem to re-sequence the mine plan and temporarily suspend mining in the main pit to make safety improvements and fortify the catch berms above the haul road into the pit, which resulted in lower royalties and lower energy and equipment maintenance costs; and (iv) lower direct costs related to overall lower sales volumes, partially offset by higher underground maintenance costs and higher power costs at Tanami resulting from higher natural gas prices.
Additionally, the decrease in Costs applicable to sales during the six months ended June 30, 2023,March 31, 2024, compared to the same period in 2022, is further offset by (i) higher maintenance costs2023, primarily at NGM, Éléonore, and Cerro Negro; (ii) higher energy costsBoddington due to inflation at NGM; and (iii) higher materials and contracted service costs at Cerro Negro resulting from inflation.lower production.
For discussion regarding other significant drivers impacting Costs applicable to sales by site, see Results of Consolidated Operations below.
The details of our Depreciation and amortization are set forth below. Refer to Note 34 of the Condensed Consolidated Financial Statements for further information.
| | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended
June 30, | | Increase
(Decrease) | | Percent
Change |
| 2023 | | 2022 | | |
| Gold | $ | 392 | | | $ | 466 | | | $ | (74) | | | (16) | % |
| Copper | 9 | | | 9 | | | — | | | — | |
| Silver | 34 | | | 42 | | | (8) | | | (19) | |
| Lead | 12 | | | 8 | | | 4 | | | 50 | |
| Zinc | 30 | | | 22 | | | 8 | | | 36 | |
| Other | 9 | | | 12 | | | (3) | | | (25) | |
| $ | 486 | | | $ | 559 | | | $ | (73) | | | (13) | % |
| | Six Months Ended
June 30, | | Increase
(Decrease) | | Percent
Change |
| 2023 | | 2022 | |
| Three Months Ended
March 31, | | | Three Months Ended
March 31, | | Increase
(Decrease) | | Percent
Change |
| 2024 | |
| Gold | |
| Gold | |
| Gold | Gold | $ | 780 | | | $ | 910 | | | $ | (130) | | | (14) | % | $ | 502 | | | $ | | $ | 388 | | | $ | | $ | 114 | | | 29 | | 29 | % |
| Copper | Copper | 18 | | | 17 | | | 1 | | | 6 | |
| Silver | Silver | 59 | | | 86 | | | (27) | | | (31) | |
| Lead | Lead | 19 | | | 18 | | | 1 | | | 6 | |
| Zinc | Zinc | 54 | | | 57 | | | (3) | | | (5) | |
| Other | Other | 17 | | | 18 | | | (1) | | | (6) | |
| $ | 947 | | | $ | 1,106 | | | $ | (159) | | | (14) | % |
| $ | | | $ | 654 | | | $ | 461 | | | $ | 193 | | | 42 | % |
The decrease toincrease in Depreciation and amortization during the three and six months ended June 30,March 31, 2024, compared to the same period in 2023, is primarily due to the impact of sites acquired in the Newcrest transaction, which contributed $145 to Depreciation and amortization.
The increase in Depreciation and amortization during the three months ended March 31, 2024, compared to the same periods in 2022,2023, is primarily due tofurther impacted by (i) lower sales and production volume at Peñasquitohigher depreciation rates as a result of thehigher ounces mined at Peñasquito labor strike;and Ahafo and (ii) lower depreciationinventory draw-downs at NGM due to lower leach pad production at Long Canyon as a result of the ramp down of mining and lower amortization rates at Carlin as a result of a longer mill life; and (iii)Yanacocha. These increases were partially offset by a decrease in Depreciation and amortization related to the depreciable asset base at CC&V resulting fromcessation of depreciation in March 2024 for sites classified as held for sale. Refer to Note 5 of the impairment charge recognized during the fourth quarterCondensed Consolidated Financial Statements for further discussion of 2022.held for sale.
For discussion regarding other significant drivers impacting Depreciation and amortization by site, see Results of Consolidated Operations below.
For discussion regarding variations in operations, see Results of Operations below.
Advanced projects, research and development expense was $53 and $35 during the three months ended March 31, 2024 and 2023, respectively. The increase during the three months ended March 31, 2024, compared to the same period in 2023 is primarily due to full potential spend at the sites acquired through the Newcrest transaction.
TableGeneral and administrative expense was $101 and$74 during the three months ended March 31, 2024, and 2023, respectively. The increase during the three months ended March 31, 2024, compared to the same period in 2023 is primarily due to consulting and other charges related to the Newcrest transaction.Interest expense, net was $93 and $65 during the three months ended March 31, 2024 and 2023, respectively. Interest expense, net increased during the three months ended March 31, 2024, compared to the same period in 2023 primarily as a result of Contentsthe senior notes acquired through the Newcrest transaction.
Income and mining tax expense (benefit) was $163$260 and $33$213 during the three months ended June 30,March 31, 2024 and 2023, and 2022, respectively, and $376 and $247 during the six months ended June 30, 2023 and 2022, respectively. The effective tax rate is driven by a number of factors and the comparability of our income tax expense for the reported periods will be primarily affected by (i) variations in our income before income taxes; (ii) geographic distribution of that income; (iii) impacts of the changes in tax law; (iv) valuation allowances on tax assets; (v) percentage depletion; (vi) fluctuation in the value of the USD and foreign currencies; and (vii) the impact of specific transactions and assessments. As a result, the effective tax rate will fluctuate, sometimes significantly, year to year. This trend is expected to continue in future periods. Refer to Note 810 of the Condensed Consolidated Financial Statements for further discussion of income taxes.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended |
| June 30, 2023 | | June 30, 2022 |
| Income (Loss) (1) | | Effective
Tax Rate | | Income Tax
(Benefit)
Provision | | | Income (Loss) (1) | | Effective
Tax Rate | | Income Tax
(Benefit)
Provision | |
| Nevada | $ | 138 | | | 13 | % | | $ | 18 | | | | 90 | | | 10 | % | | $ | 9 | | |
| CC&V | 19 | | | 16 | | | 3 | | | | 6 | | | — | | | — | | |
| Corporate & Other | (114) | | | 12 | | | (14) | | | | (183) | | | 4 | | | (7) | | |
| Total US | 43 | | | 16 | | | 7 | | | | (87) | | | (2) | | | 2 | | |
| Australia | 312 | | | 36 | | | 112 | | | | 379 | | | 33 | | | 125 | | |
| Ghana | 95 | | | 34 | | | 32 | | | | 153 | | | 35 | | | 54 | | |
| Suriname | (13) | | | 23 | | | (3) | | | | 33 | | | 27 | | | 9 | | |
| Peru | (9) | | | (22) | | | 2 | | | | 1 | | | 100 | | | 1 | | |
| Canada | (23) | | | (13) | | | 3 | | | | (37) | | | 8 | | | (3) | | |
| Mexico | (57) | | | (37) | | | 21 | | | | (37) | | | 373 | | | (138) | | (2) |
| Argentina | (53) | | | — | | | — | | | | (2) | | | 550 | | | (11) | |
|
| Other Foreign | 5 | | | 40 | | | 2 | | | | 5 | | | 40 | | | 2 | | |
| Rate adjustments | — | | | N/A | | (13) | | (3) | | — | | | N/A | | (8) | | (3) |
| Consolidated | $ | 300 | | | 54 | % | (4) | $ | 163 | | | | $ | 408 | | | 8 | % | (4) | $ | 33 | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended |
| March 31, 2024 | | March 31, 2023 |
| Income (Loss) (1) | | Effective
Tax Rate | | Income Tax
(Benefit)
Provision | | | Income (Loss) (1) | | Effective
Tax Rate | | Income Tax
(Benefit)
Provision | |
| Nevada | $ | 129 | | | 7 | % | | $ | 9 | | | | $ | 85 | | | 16 | % | | $ | 14 | | |
| CC&V | (93) | | | 22 | | | (20) | | | | 27 | | | 19 | | | 5 | | |
| Corporate & Other | (88) | | | (106) | | | 93 | | | | (32) | | | 50 | | | (16) | | |
| Total US | (52) | | | (158) | | | 82 | | | | 80 | | | 4 | | | 3 | | |
| Australia | 331 | | | 36 | | | 120 | | | | 255 | | | 35 | | | 90 | | |
| Ghana | 209 | | | 32 | | | 66 | | | | 112 | | | 33 | | | 37 | | |
| Suriname | 25 | | | 24 | | | 6 | | | | 37 | | | 24 | | | 9 | | |
| Peru | 27 | | | 15 | | | 4 | | | | (6) | | | — | | | — | | |
| Canada | (363) | | | 34 | | | (123) | | | | 54 | | | 13 | | | 7 | | |
| Mexico | 56 | | | 66 | | | 37 | | | | 16 | | | 400 | | | 64 | | |
| Argentina | 29 | | | — | | | — | | | | (14) | | | — | | | — | |
|
| Papua New Guinea | 159 | | | 31 | | | 49 | | | | — | | | — | | | — | | |
| Other Foreign | 7 | | | — | | | — | | | | 5 | | | — | | | — | | |
| Rate adjustments | — | | | N/A | | 19 | | (2) | | — | | | N/A | | 3 | | (2) |
| Consolidated | $ | 428 | | | 61 | % | (3) | $ | 260 | | | | $ | 539 | | | 40 | % | (3) | $ | 213 | | |
____________________________(1)Represents income (loss) from continuing operations by geographic location before income taxes and equity income (loss) of affiliates. These amounts will not reconcile to the Segment Information for the reasons stated in Note 34 of the Condensed Consolidated Financial Statements.
(2)Includes the Mexico tax settlement of $(125).
(3)In accordance with applicable accounting rules, the interim provision for income taxes is adjusted to equal the consolidated tax rate.
(4)The consolidated effective income tax rate is a function of the combined effective tax rates for the jurisdictions in which we operate. Variations in the relative proportions of jurisdictional income could result in fluctuations to our combined effective income tax rate.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Six Months Ended |
| June 30, 2023 | | June 30, 2022 |
| Income (Loss) (1) | | Effective
Tax Rate | | Income Tax
(Benefit)
Provision | | | Income (Loss) (1) | | Effective
Tax Rate | | Income Tax
(Benefit)
Provision | |
| Nevada | $ | 223 | | | 14 | % | | $ | 32 | | | | $ | 242 | | | 14 | % | | $ | 34 | | |
| CC&V | 46 | | | 17 | | | 8 | | | | — | | | — | | | — | | |
| Corporate & Other | (146) | | | 21 | | | (30) | | | | (367) | | | 14 | | | (50) | | |
| Total US | 123 | | | 8 | | | 10 | | | | (125) | | | 13 | | | (16) | | |
| Australia | 567 | | | 36 | | | 202 | | | | 671 | | | 34 | | | 228 | | |
| Ghana | 207 | | | 33 | | | 69 | | | | 277 | | | 35 | | | 96 | | |
| Suriname | 24 | | | 25 | | | 6 | | | | 104 | | | 27 | | | 28 | | |
| Peru | (15) | | | (13) | | | 2 | | | | 3 | | | 67 | | | 2 | | |
| Canada | 31 | | | 32 | | | 10 | | | | (86) | | | 5 | | | (4) | | |
| Mexico | (41) | | | (207) | | | 85 | | | | 188 | | | (20) | | | (38) | | (2) |
| Argentina | (67) | | | — | | | — | | | | (7) | | | 400 | | | (28) | |
|
| Other Foreign | 10 | | | 20 | | | 2 | | | | 11 | | | 18 | | | 2 | | |
| Rate adjustments | — | | | N/A | | (10) | | (3) | | — | | | N/A | | (23) | | (3) |
| Consolidated | $ | 839 | | | 45 | % | (4) | $ | 376 | | | | $ | 1,036 | | | 24 | % | (4) | $ | 247 | | |
____________________________(1)Represents income (loss) from continuing operations by geographic location before income taxes and equity income (loss) of affiliates. These amounts will not reconcile to the Segment Information for the reasons stated in Note 3 of the Condensed Consolidated Financial Statements.
(2)Includes the Mexico tax settlement of $(125).
(3)In accordance with applicable accounting rules, the interim provision for income taxes is adjusted to equal the consolidated tax rate.
(4)The consolidated effective income tax rate is a function of the combined effective tax rates for the jurisdictions in which we operate. Variations in the relative proportions of jurisdictional income could result in fluctuations to our combined effective income tax rate.
In August 2022,2024, Pillar II is set to take effect. The Pillar II agreement was signed by 138 countries with the U.S. government enactedintent to equalize corporate tax around the Inflation Reduction Act of 2022 (the "IRA") into law. The IRA introduced an excise tax on stock repurchases of 1% andworld by implementing a corporate alternativeglobal minimum tax (the "Corporate AMT") of 15% on. As Newmont primarily does business in jurisdictions with a tax rate greater than 15%, the adjusted financial statement income ("AFSI") of corporations with average AFSI exceeding $1 billion over a three-year period. The IRA is effective for fiscal periods beginning 2023. While waiting on pending Department of Treasury regulatory guidance, we are continuing to monitor developments. Based upon information known to date, the IRA has no material impact in the current consolidated financial statements, disclosures, or cash flows. Further, it isCompany does not anticipated to haveanticipate a material impact to futurethe consolidated financial statements, disclosures, or cash flows. Refer to Note 2 of the Condensed Consolidated Financial Statements for further information.statements.
Refer to the Notes of the Condensed Consolidated Financial Statements for explanations of other financial statement line items.
Results of Consolidated Operations
Newmont has developed gold equivalent ounces ("GEO") metrics to provide a comparable basis for analysis and understanding of our operations and performance related to copper, silver, lead and zinc. Gold equivalent ounces are calculated as pounds or ounces produced or sold multiplied by the ratio of the other metals’ price to the gold price, using the metal prices in the table below:
| | Gold | | Copper | | Silver | | Lead | | Zinc |
| (ounce) | | (pound) | | (ounce) | | (pound) | | (pound) |
| Gold | | | Gold | | Copper | | Silver | | Lead | | Zinc |
| (ounce) | | | (ounce) | | (pound) | | (ounce) | | (pound) |
| 2024 GEO Price | |
| 2023 GEO Price | 2023 GEO Price | $ | 1,400 | | | $ | 3.50 | | | $ | 20.00 | | | $ | 1.00 | | | $ | 1.20 | |
| 2022 GEO Price | $ | 1,200 | | | $ | 3.25 | | | $ | 23.00 | | | $ | 0.95 | | | $ | 1.15 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Gold or Other Metals Produced | | Costs Applicable to Sales (1) | | Depreciation and Amortization | | All-In Sustaining Costs (2) |
| Three Months Ended June 30, | 2023 | | 2022 | | 2023 | | 2022 | | 2023 | | 2022 | | 2023 | | 2022 |
| Gold | (ounces in thousands) | | ($ per ounce sold) | | ($ per ounce sold) | | ($ per ounce sold) |
| CC&V | 41 | | | 43 | | | $ | 1,186 | | | $ | 1,073 | | | $ | 146 | | | $ | 349 | | | $ | 1,631 | | | $ | 1,553 | |
Musselwhite | 41 | | | 39 | | | 1,356 | | | 1,331 | | | 448 | | | 488 | | | 2,254 | | | 1,693 | |
Porcupine | 60 | | | 68 | | | 1,225 | | | 1,062 | | | 415 | | | 356 | | | 1,587 | | | 1,328 | |
Éléonore | 48 | | | 45 | | | 1,477 | | | 1,520 | | | 475 | | | 595 | | | 2,213 | | | 1,922 | |
| Peñasquito | 38 | | | 121 | | | 831 | | | 971 | | | 297 | | | 263 | | | 1,078 | | | 1,187 | |
| Merian | 54 | | | 96 | | | 1,501 | | | 972 | | | 296 | | | 207 | | | 2,010 | | | 1,173 | |
Cerro Negro | 48 | | | 74 | | | 1,655 | | | 926 | | | 676 | | | 541 | | | 1,924 | | | 1,106 | |
| Yanacocha | 65 | | | 68 | | | 1,187 | | | 1,058 | | | 341 | | | 315 | | | 1,386 | | | 1,321 | |
| Boddington | 209 | | | 233 | | | 777 | | | 753 | | | 135 | | | 138 | | | 966 | | | 854 | |
| Tanami | 126 | | | 133 | | | 829 | | | 631 | | | 251 | | | 194 | | | 1,162 | | | 873 | |
| Ahafo | 137 | | | 135 | | | 910 | | | 952 | | | 317 | | | 310 | | | 1,237 | | | 1,130 | |
| Akyem | 49 | | | 108 | | | 1,087 | | | 701 | | | 525 | | | 306 | | | 1,461 | | | 837 | |
| NGM | 287 | | | 290 | | | 1,055 | | | 1,035 | | | 366 | | | 435 | | | 1,388 | | | 1,263 | |
Total/Weighted-Average (3) | 1,203 | | | 1,453 | | | $ | 1,054 | | | $ | 932 | | | $ | 331 | | | $ | 322 | | | $ | 1,472 | | | $ | 1,199 | |
| Merian (25%) | (14) | | | (25) | | | | | | | | | | | | | |
Yanacocha (—% and —%, respectively) (4) | — | | | (3) | | | | | | | | | | | | | |
| Attributable to Newmont | 1,189 | | | 1,425 | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
| Gold equivalent ounces - other metals | (ounces in thousands) | | ($ per ounce sold) | | ($ per ounce sold) | | ($ per ounce sold) |
Peñasquito (5) | 189 | | | 266 | | | $ | 1,162 | | | $ | 1,054 | | | $ | 405 | | | $ | 276 | | | $ | 1,581 | | | $ | 1,347 | |
Boddington (6) | 67 | | | 64 | | | 766 | | | 710 | | | 138 | | | 135 | | | 977 | | | 818 | |
Total/Weighted-Average (3) | 256 | | | 330 | | | $ | 1,062 | | | $ | 983 | | | $ | 338 | | | $ | 246 | | | $ | 1,492 | | | $ | 1,286 | |
| | | | | | | | | | | | | | | |
Attributable gold from equity method investments (7) | (ounces in thousands) | | | | | | | | | | | | |
| Pueblo Viejo (40%) | 51 | | | 70 | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Gold or Other Metals Produced | | Costs Applicable to Sales (1) | | Depreciation and Amortization | | All-In Sustaining Costs (2) |
| Three Months Ended March 31, | 2024 | | 2023 | | 2024 | | 2023 | | 2024 | | 2023 | | 2024 | | 2023 |
| Gold | (ounces in thousands) | | ($ per ounce sold) | | ($ per ounce sold) | | ($ per ounce sold) |
Brucejack (3) | 37 | | | — | | | $ | 2,175 | | | $ | — | | | $ | 1,045 | | | $ | — | | | $ | 2,580 | | | $ | — | |
Red Chris (3) | 6 | | | — | | | $ | 940 | | | $ | — | | | $ | 244 | | | $ | — | | | $ | 1,277 | | | $ | — | |
| Peñasquito | 45 | | | 85 | | | $ | 853 | | | $ | 1,199 | | | $ | 334 | | | $ | 367 | | | $ | 1,079 | | | $ | 1,539 | |
| Merian | 76 | | | 82 | | | $ | 1,221 | | | $ | 1,028 | | | $ | 263 | | | $ | 212 | | | $ | 1,530 | | | $ | 1,235 | |
Cerro Negro (4) | 81 | | | 67 | | | $ | 861 | | | $ | 1,146 | | | $ | 400 | | | $ | 507 | | | $ | 1,120 | | | $ | 1,379 | |
| Yanacocha | 91 | | | 56 | | | $ | 972 | | | $ | 1,067 | | | $ | 308 | | | $ | 295 | | | $ | 1,123 | | | $ | 1,332 | |
| Boddington | 142 | | | 199 | | | $ | 1,016 | | | $ | 841 | | | $ | 181 | | | $ | 141 | | | $ | 1,242 | | | $ | 1,035 | |
| Tanami | 90 | | | 63 | | | $ | 902 | | | $ | 936 | | | $ | 276 | | | $ | 294 | | | $ | 1,149 | | | $ | 1,219 | |
Cadia (3) | 122 | | | — | | | $ | 648 | | | $ | — | | | $ | 246 | | | $ | — | | | $ | 989 | | | $ | — | |
Lihir (3) | 181 | | | — | | | $ | 936 | | | $ | — | | | $ | 193 | | | $ | — | | | $ | 1,256 | | | $ | — | |
| Ahafo | 190 | | | 128 | | | $ | 865 | | | $ | 992 | | | $ | 278 | | | $ | 301 | | | $ | 1,010 | | | $ | 1,366 | |
| NGM | 264 | | | 261 | | | $ | 1,177 | | | $ | 1,109 | | | $ | 401 | | | $ | 409 | | | $ | 1,576 | | | $ | 1,405 | |
Held for sale (5) | | | | | | | | | | | | | | | |
| CC&V | 28 | | | 48 | | | $ | 1,394 | | | $ | 1,062 | | | $ | 119 | | | $ | 153 | | | $ | 1,735 | | | $ | 1,375 | |
| Musselwhite | 49 | | | 41 | | | $ | 1,175 | | | $ | 1,313 | | | $ | 367 | | | $ | 429 | | | $ | 1,766 | | | $ | 1,681 | |
| Porcupine | 61 | | | 66 | | | $ | 1,042 | | | $ | 1,071 | | | $ | 378 | | | $ | 454 | | | $ | 1,470 | | | $ | 1,412 | |
| Éléonore | 56 | | | 66 | | | $ | 1,441 | | | $ | 1,095 | | | $ | 348 | | | $ | 392 | | | $ | 1,920 | | | $ | 1,420 | |
Telfer (3)(6) | 31 | | | — | | | $ | 2,632 | | | $ | — | | | $ | 303 | | | $ | — | | | $ | 3,017 | | | $ | — | |
| Akyem | 69 | | | 71 | | | $ | 1,006 | | | $ | 810 | | | $ | 396 | | | $ | 370 | | | $ | 1,254 | | | $ | 1,067 | |
Total/Weighted-Average (7) | 1,619 | | | 1,233 | | | $ | 1,057 | | | $ | 1,025 | | | $ | 322 | | | $ | 328 | | | $ | 1,439 | | | $ | 1,376 | |
| Merian (25%) | (19) | | | (20) | | | | | | | | | | | | | |
| Attributable to Newmont | 1,600 | | | 1,213 | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
| Gold equivalent ounces - other metals | (ounces in thousands) | | ($ per ounce sold) | | ($ per ounce sold) | | ($ per ounce sold) |
Red Chris (3)(8) | 28 | | | — | | | $ | 1,011 | | | $ | — | | | $ | 262 | | | $ | — | | | $ | 1,400 | | | $ | — | |
Peñasquito (9) | 288 | | | 224 | | | $ | 843 | | | $ | 954 | | | $ | 311 | | | $ | 280 | | | $ | 1,102 | | | $ | 1,351 | |
Boddington (10) | 49 | | | 64 | | | $ | 942 | | | $ | 809 | | | $ | 175 | | | $ | 138 | | | $ | 1,081 | | | $ | 1,019 | |
Cadia (3)(11) | 118 | | | — | | | $ | 594 | | | $ | — | | | $ | 242 | | | $ | — | | | $ | 1,027 | | | $ | — | |
Held for sale (5) | | | | | | | | | | | | | | | |
Telfer (3)(4)(11) | 6 | | | — | | | $ | 2,882 | | | $ | — | | | $ | 354 | | | $ | — | | | $ | 3,745 | | | $ | — | |
Total/Weighted-Average (7) | 489 | | | 288 | | | $ | 829 | | | $ | 918 | | | $ | 279 | | | $ | 245 | | | $ | 1,148 | | | $ | 1,322 | |
| | | | | | | | | | | | | | | |
| Copper | (tonnes in thousands) | | | | | | |
Red Chris (3)(8) | 5 | | | — | | | | | | | | | | | | | |
Boddington (10) | 9 | | | 12 | | | | | | | | | | | | | |
Cadia (3)(11) | 21 | | | — | | | | | | | | | | | | | |
Held for sale (5) | | | | | | | | | | | | | | | |
Telfer (3)(12) | 1 | | | — | | | | | | | | | | | | | |
Total/Weighted-Average (7) | 36 | | | 12 | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
| Lead | (tonnes in thousands) | | | | | | |
Peñasquito (9) | 28 | | | 19 | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
| Zinc | (tonnes in thousands) | | | | | | |
Peñasquito (9) | 58 | | | 46 | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
Attributable gold from equity method investments (13) | (ounces in thousands) | | | | | | | | | | | | |
| Pueblo Viejo (40%) | 54 | | | 60 | | | | | | | | | | | | | |
Fruta del Norte (3)(14) | 21 | | | — | | | | | | | | | | | | | |
| Attributable to Newmont | 75 | | | 60 | | | | | | | | | | | | | |
____________________________
(1)Excludes Depreciation and amortization and Reclamation and remediation.
(2)All-in sustaining costs is a non-GAAP financial measure. Refer to Non-GAAP Financial Measures, below.
(3)Sites acquired through the Newcrest transaction during the fourth quarter of 2023, and as such, the comparative results of operations information is not meaningful. Additionally, the Company suspended mining operations at the Brucejack site to conduct a full investigation into the tragic fatality that occurred on December 20, 2023. The site ramped up to full operations by the end of January 2024. Refer to Note 3 to the Condensed Consolidated Financial Statements for further information on the Newcrest transaction.
(4)In the second quarter of 2024, operations at Cerro Negro are currently suspended as a full investigation is conducted following the tragic fatalities of two members of the Newmont workforce on April 9, 2024.
(5)Sites are classified as held for sale as of March 31, 2024, and as such, the Company ceased recording depreciation and amortization at these sites in March 2024. Refer to Note 5 of the Condensed Consolidated Financial Statements for further discussion of our assets and liabilities held for sale.
(6)Subsequent to quarter end, seepage points were detected on the outer wall and around the tailings storage facility at Telfer and we have temporarily ceased placing new tailings on the facility as the incident is currently under investigation.
(7)All-in sustaining costs and Depreciation and amortization include expenses for Corporate and Other.
(4)The Company acquired the remaining interest in Yanacocha in the second quarter of 2022, resulting in 100% ownership. The Company recognized amounts attributable to non-controlling interests for Yanacocha during the three months ended June 30, 2022 for the period prior to acquiring 100% ownership. Refer to Note 1 of the Condensed Consolidated Financial Statement for further information.
(5)(8)For the three months ended June 30, 2023,March 31, 2024, Red Chris produced 11 million pounds of copper.
(9)For the three months ended March 31, 2024, Peñasquito produced 6,323 thousand9 million ounces of silver, 4561 million pounds of lead and 78127 million pounds of zinc. For the three months ended June 30, 2022,March 31, 2023, Peñasquito produced 7,733 thousand7 million ounces of silver, 3541 million pounds of lead and 94102 million pounds of zinc.
(6)(10)For the three months ended June 30,March 31, 2024 and 2023, and 2022, Boddington produced 2620 million and 2426 million pounds of copper, respectively.
(7)(11)For the three months ended March 31, 2024, Cadia produced 47 million pounds of copper.
(12)For the three months ended March 31, 2024, Telfer produced 3 million pounds of copper.
(13)Income and expenses of equity method investments are included in Equity income (loss) of affiliates. Refer to Note 1113 of the Condensed Consolidated Financial Statements for further discussion of our equity method investments.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Gold or Other Metals Produced | | Costs Applicable to Sales (1) | | Depreciation and Amortization | | All-In Sustaining Costs (2) |
| Six Months Ended June 30, | 2023 | | 2022 | | 2023 | | 2022 | | 2023 | | 2022 | | 2023 | | 2022 |
| Gold | (ounces in thousands) | | ($ per ounce sold) | | ($ per ounce sold) | | ($ per ounce sold) |
| CC&V | 89 | | | 78 | | | $ | 1,120 | | | $ | 1,230 | | | $ | 150 | | | $ | 393 | | | $ | 1,494 | | | $ | 1,608 | |
Musselwhite | 82 | | | 71 | | | 1,333 | | | 1,342 | | | 438 | | | 496 | | | 1,955 | | | 1,670 | |
Porcupine | 126 | | | 127 | | | 1,146 | | | 1,077 | | | 435 | | | 364 | | | 1,498 | | | 1,313 | |
Éléonore | 114 | | | 91 | | | 1,256 | | | 1,380 | | | 427 | | | 583 | | | 1,756 | | | 1,734 | |
| Peñasquito | 123 | | | 258 | | | 1,028 | | | 809 | | | 335 | | | 278 | | | 1,325 | | | 1,013 | |
| Merian | 136 | | | 197 | | | 1,212 | | | 906 | | | 245 | | | 211 | | | 1,537 | | | 1,079 | |
Cerro Negro | 115 | | | 142 | | | 1,376 | | | 948 | | | 584 | | | 568 | | | 1,625 | | | 1,172 | |
| Yanacocha | 121 | | | 133 | | | 1,134 | | | 1,022 | | | 320 | | | 340 | | | 1,362 | | | 1,243 | |
| Boddington | 408 | | | 415 | | | 809 | | | 781 | | | 138 | | | 139 | | | 1,000 | | | 888 | |
| Tanami | 189 | | | 233 | | | 866 | | | 644 | | | 266 | | | 206 | | | 1,182 | | | 933 | |
| Ahafo | 265 | | | 242 | | | 951 | | | 967 | | | 309 | | | 301 | | | 1,301 | | | 1,171 | |
| Akyem | 120 | | | 199 | | | 917 | | | 717 | | | 430 | | | 316 | | | 1,220 | | | 884 | |
| NGM | 548 | | | 578 | | | 1,081 | | | 967 | | | 386 | | | 435 | | | 1,396 | | | 1,176 | |
Total/Weighted-Average (3) | 2,436 | | | 2,764 | | | $ | 1,040 | | | $ | 912 | | | $ | 330 | | | $ | 330 | | | $ | 1,424 | | | $ | 1,179 | |
| Merian (25%) | (34) | | | (50) | | | | | | | | | | | | | |
Yanacocha (—% and —%, respectively) (4) | — | | | (14) | | | | | | | | | | | | | |
| Attributable to Newmont | 2,402 | | | 2,700 | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
| Gold equivalent ounces - other metals | (ounces in thousands) | | ($ per ounce sold) | | ($ per ounce sold) | | ($ per ounce sold) |
Peñasquito (5) | 413 | | | 565 | | | $ | 1,055 | | | $ | 864 | | | $ | 341 | | | $ | 288 | | | $ | 1,463 | | | $ | 1,138 | |
Boddington (6) | 131 | | | 115 | | | 788 | | | 765 | | | 138 | | | 139 | | | 998 | | | 881 | |
Total/Weighted-Average (3) | 544 | | | 680 | | | $ | 988 | | | $ | 846 | | | $ | 290 | | | $ | 261 | | | $ | 1,405 | | | $ | 1,138 | |
| | | | | | | | | | | | | | | |
Attributable gold from equity method investments (7) | (ounces in thousands) | | | | | | | | | | | | |
| Pueblo Viejo (40%) | 111 | | | 139 | | | | | | | | | | | | | |
____________________________
(1)Excludes Depreciation and amortization and Reclamation and remediation.
(2)All-in sustaining costs is a non-GAAP financial measure. Refer to Non-GAAP Financial Measures, below.
(3)All-in sustaining costs and Depreciation and amortization include expenses for Corporate and Other.
(4)(14)The Company acquired the remainingFruta del Norte mine is wholly owned and operated by Lundin Gold, in which Newmont holds a 31.9% interest in Yanacocha in the second quarter of 2022, resulting in 100% ownership. The Company recognized amounts attributable to non-controlling interestsas at March 31, 2024, and is accounted for Yanacocha during the six months ended June 30, 2022 for the period prior to acquiring 100% ownership. Refer to Note 1 of the Condensed Consolidated Financial Statement for further information.
(5)For the six months ended June 30, 2023, Peñasquito produced 13,786 thousand ounces of silver, 86 million pounds of lead and 180 million pounds of zinc. For the six months ended June 30, 2022, Peñasquito produced 15,813 thousand ounces of silver, 79 million pounds of lead and 208 million pounds of zinc.
(6)For the six months ended June 30, 2023 and 2022, Boddington produced 52 million and 43 million pounds of copper, respectively.
(7)Income and expenses ofas an equity method investments are included in Equity income (loss) of affiliates. Refer to Note 11 of the Condensed Consolidated Financial Statements for further discussion of our equity method investments.investment on a quarter lag.
Three Months Ended June 30, 2023March 31, 2024 compared to 20222023
CC&V, U.S.Peñasquito, Mexico. Gold production decreased 5%47% primarily due to lower leach pad production. Costs applicable to sales per gold ounce increased 11% primarily due to lower gold ounces sold. Depreciation and amortization per gold ounce decreased 58% primarily due to a lower depreciable asset base as a result of the impairment charge recognized during the fourth quarter of 2022. All-in sustaining costs per gold ounce increased 5% primarily due to lower gold ounces sold.
Musselwhite, Canada. Gold production increased 5% primarily due to higher ore grade milled. Costs applicable to sales per gold ounce was generally in line with the prior year. Depreciation and amortization per gold ounce decreased 8% primarily due to higher gold ounces sold. All-in sustaining costs per gold ounce increased 33% primarily due to higher sustaining capital spend.
Porcupine, Canada. Gold production decreased 12% primarily due to lower mill throughput as a result of scheduled mill downtime, partially offset by a drawdown of in-circuit inventory in the current year compared to a build-up in the prior year and higher ore grade milled, in the current year. Costs applicable to sales per gold ounce increased 15% primarily due to higher contracted services costs, higherlower mill maintenance costs,recovery, and lower goldmill throughput. Gold equivalent ounces sold. Depreciation and amortization per gold ounce increased 17% primarily due to higher depreciation rates as a result of higher gold ounces mined and lower gold ounces sold. All-in sustaining costs per gold ounce increased 20% primarily due to higher costs applicable to sales per gold ounce, higher reclamation costs, and lower gold ounces sold.
Éléonore, Canada. Gold- other metals production increased 7%29% primarily due to higher ore grade milled, partially offset by lower mill throughput as a result of a temporary evacuation of the site and corresponding shutdown of the operation in June 2023 in response to the ongoing wildfires in Canada. The Company expects operations to fully resume during the third quarter of 2023. Costs applicable to sales per gold ounce was generally in line with the prior year. Depreciation and amortization per gold ounce decreased 20% primarily due to higher gold ounces sold. All-in sustaining costs per gold ounce increased 15% primarily due to higher sustaining capital spend, partially offset by higher gold ounces sold.
Peñasquito, Mexico. Gold production decreased 69% primarily due to the Peñasquito labor strike, lower mill recovery and lower ore grade milled. Gold equivalent ounces – other metals production decreased 29% primarily due to a change in GEO pricing, noted above, that had an unfavorable impact to the calculated gold equivalent ounces - other metals produced of 16%, and lower other metals produced of 13%, as a result of the Peñasquito labor strike, partially offset by higher ore grade milled.throughput. Costs applicable to sales per gold ounce decreased 14%29% primarily due to lower energy, material and contracted laborworkers participation costs as a result of the Peñasquito labor strike and lower workers' participationco-product allocation of direct costs due to the Peñasquito profit-sharing agreement entered into during the second quarter of 2022.gold, partially offset by lower gold ounces sold. Costs applicable to sales per gold equivalent ounce – other metals increased 10%decreased 12% primarily due to higher inventory write-downs and lower gold equivalent ounces - other metals sold and lower workers participation costs, partially offset by lower workers' participationhigher co-product allocation of costs due to the Peñasquito profit-sharing agreement entered into by the Company during the second quarter of 2022 and lower energy, material and contracted labor costs as a result of the Peñasquito labor strike.gold equivalent ounces - other metals. Depreciation and amortization per gold ounce increased 13%decreased 9% primarily due to lower gold ounces sold, partially offset by lower depreciation rates as a result of lower gold ounces mined.mined, partially offset by lower gold ounces sold. Depreciation and amortization per gold equivalent ounces – other metals increased 47%11% primarily due to lowerhigher depreciation rates as a result of higher gold equivalent ounces - other metals sold,mined, partially offset by lower depreciation rates as a result of lowerhigher gold equivalent ounces - other metals mined.sold. All-in sustaining costs per gold ounce decreased 9%30% primarily due to lower costsCosts applicable to sales per gold ounce and lower sustaining capital spend, partially offset by lower gold ounces sold.spend. All-in sustaining costs per gold equivalent ounce – other metals increased 17%decreased 18% primarily due to lower Costs applicable to sales per gold equivalent ounce - other metals sold.and lower sustaining capital spend.
Merian, Suriname. Gold production decreased 44% primarily due to a build-up of in-circuit inventory as a result of unplanned mill maintenance downtime in the current year and lower ore grade milled and lower mill throughput as a result of changes in mine sequencing. Costs applicable to sales per gold ounce increased 54% primarily due to lower gold ounces sold. Depreciation and amortization per gold ounce increased 43% primarily due to lower gold ounces sold. All-in sustaining costs per gold ounce increased 71% primarily due to higher costs applicable to sales per gold ounce and higher sustaining capital spend.
Cerro Negro, Argentina. Gold production decreased 35%7% primarily due to lower ore grade milled as a result of changes in mine sequencing, partially offset by higher mill throughput. Costs applicable to sales per gold ounce increased 79%19% primarily due to higher equipment maintenance costs, higher materials and contracted service costs resulting from cost inflation and lower gold ounces sold.sold and higher labor costs. Depreciation and amortization per gold ounce increased 25%24% primarily due to lower gold ounces sold and asset additions.sold. All-in sustaining costs per gold ounce increased 74%24% primarily due higher costs applicable to sales per gold ounce.
Yanacocha, Peru. Gold production was generally in line with the prior year.higher Costs applicable to sales per gold ounce and higher sustaining capital spend.
Cerro Negro, Argentina. Gold production increased 12%21% primarily due to higher contracted services costs and inventory write-downs in the current quarter. Depreciation and amortization per gold ounce increased 8% primarily due to inventory write-downs in the current quarter. All-in sustaining costs per gold ounce increased 5% primarily due to higher costs applicable to sales per gold ounce,ore grade milled, partially offset by lower sustaining capital spend.
Boddington, Australia. Gold production decreased 10% primarily due to lower ore grade milled and lower mill throughput. Gold equivalent ounces – other metals production was generally in line with the prior year. Costs applicable to sales per gold ounce was generally in line with the prior year. Costs applicable to sales per gold equivalent ounce – other metals increased 8% primarily due to higher equipment maintenance costs. Depreciation and amortization per gold ounce and depreciation and amortization per gold equivalent ounce – other metals were generally in line with the prior year. All-in sustaining costs per gold ounce increased 13% primarily due to higher sustaining capital spend. All-in sustaining costs per gold equivalent ounce – other metals increased 19% primarily due to higher sustaining capital costs and higher costs applicable to sales per gold equivalent ounce – other metals.
Tanami, Australia. Gold production decreased 5% primarily due to lower mill throughput. Costs applicable to sales per gold ounce increased 31%decreased 25% primarily due to lowerhigher gold ounces sold higher underground maintenance costs and higher power costs as a result of higher natural gas prices,lower export duties, partially offset by a favorable Australian dollar foreign currency exchange rate.higher materials costs. Depreciation and
amortization per gold ounce increased 29%decreased 21% primarily due to lowerhigher gold ounces sold and asset additions.sold. All-in sustaining costs per gold ounce increased 33%decreased 19% primarily due higher coststo lower Costs applicable to sales per gold ounce and higher sustaining capital spend.ounce.
Ahafo, Ghana.Yanacocha, Peru. Gold production was generally in line with the prior year.increased 63% primarily due to higher leach pad production as a result of higher grade. Costs applicable to sales per gold ounce was generally in line with the prior year.decreased 9% primarily due to higher gold ounces sold. Depreciation and amortization per gold ounce was generally in line with the prior year. All-in sustaining costs per gold ounce increased 9%decreased 16% primarily due to higher gold ounces sold.
Boddington, Australia. Gold production decreased 29% primarily due to lower ore grade milled and lower mill throughput. Gold equivalent ounces – other metals production decreased 23% primarily due to lower ore grade milled and lower mill throughput. Costs applicable to sales per gold ounce increased 21% primarily due to lower gold ounces sold and higher materials and contracted services costs, partially offset by a favorable Australian dollar foreign currency exchange rate. Costs applicable to sales per gold equivalent ounce – other metals sold increased 16% primarily due to lower gold equivalent ounces - other metals sold and higher materials and contracted services costs, partially offset by a favorable Australian dollar foreign currency exchange rate. Depreciation and amortization per gold ounce increased 28% primarily due to lower gold ounces sold and higher depreciation rates. Depreciation and amortization per gold equivalent ounce – other metals increased 27% primarily due to lower gold equivalent ounces - other metals sold and higher depreciation rates. All-in sustaining costs per gold ounce increased 20% primarily due to higher Costs applicable to sales per gold ounce, partially offset by lower sustaining capital spend. All-in sustaining costs per gold equivalent ounce – other metals increased 6%
primarily due to higher Costs applicable to sales per gold equivalent ounce - other metals sold, partially offset by lower sustaining capital spend.
Tanami, Australia. Gold production increased 43% primarily due to higher mill throughput in the current year as a result of the Tanami rainfall event in the prior year. Costs applicable to sales per gold ounce were generally in line with the prior year. Depreciation and amortization per gold ounce decreased 6% primarily due to higher gold ounces sold. All-in sustaining costs per gold ounce decreased 6% primarily due to higher gold ounces sold.
Ahafo, Ghana. Gold production increased 48% primarily due to higher ore grade milled. Costs applicable to sales per gold ounce decreased 13% primarily due to higher gold ounces sold, partially offset by higher third party royalties and higher contracted services and labor costs. Depreciation and amortization per gold ounce decreased 8% primarily due to higher gold ounces sold, partially offset by higher depreciation rates as a result of higher gold ounces mined and asset additions. All-in sustaining costs per gold ounce decreased 26% primarily due to lower sustaining capital spend and lower Costs applicable to sales per gold ounces sold.ounce. In February 2023, there was a failure from one of the primary crusher conveyors that feed the mill stockpile. During the third quarter of 2023, the conveyor was rebuilt and fully commissioned. During 2023, we collected $11 in business interruption insurance proceeds as a result of the event. During 2024, we collected additional business interruption proceeds of $10 during the first quarter, with the remainder expected to be received in the second quarter of 2024. We expect additional insurance proceeds to be received during the second quarter of 2024. Additionally, in June 2023, damage was discovered in the SAG mill girth gear that has required the plant to operate at less than full capacity at the end of the quarter.capacity. The Company is working with an engineering firmexpects to assessreplace the risk of failure and to develop a remediation plan.
Akyem, Ghana. Gold production decreased 55% primarily due to lower mill throughput and lower production at Akyem to re-sequence the mine plan and temporarily suspend miningdamaged gear in the main pit to make safety improvements and fortify the catch berms above the haul road into the pit. Costs applicable to sales per gold ounce increased 55% primarily due to lower gold ounces sold and higher contracted services costs, partially offset by lower energy and equipment maintenance costs. Depreciation and amortization per gold ounce increased 72% primarily due to lower gold ounces sold. All-in sustaining costs per gold ounce increased 75% primarily due to higher costs applicable to sales per gold ounce and higher sustaining capital spend.second quarter of 2024.
NGM, U.S. Attributable gold production was generally in line with the prior year. Costs applicable to sales per gold ounce was generally in line with the prior year. Depreciation and amortization per gold ounce decreased 16% primarily due to higher gold ounces sold at Cortez. All-in sustaining costs per gold ounce increased 10% primarily due to higher sustaining capital spend at Carlin and Cortez.
Pueblo Viejo, Dominican Republic. Attributable gold production decreased 27% primarily due to lower ore grade milled and lower mill throughput. Refer to Note 11 of the Condensed Consolidated Financial Statements for further discussion of our equity method investments.
Six Months Ended June 30, 2023 compared to 2022
CC&V, U.S. Gold production increased 14% primarily due to higher leach pad production. Costs applicable to sales per gold ounce decreased 9% primarily due to higher gold ounces sold and no inventory write-downs in the current year compared to inventory write-downs in the prior year. Depreciation and amortization per gold ounce decreased 62% primarily due to a lower depreciable asset base as a result of the impairment charge recognized during the fourth quarter of 2022. All-in sustaining costs per gold ounce decreased 7% primarily due to lower costs applicable to sales per gold ounce, partially offset by higher sustaining capital spend.
Musselwhite, Canada. Gold production increased 15% primarily due to higher ore grade milled and mill throughput. Costs applicable to sales per gold ounce was generally in line with the prior year. Depreciation and amortization per gold ounce decreased 12% primarily due to higher gold ounces sold. All-in sustaining costs per gold ounce increased 17% primarily due to higher sustaining capital spend, partially offset by higher gold ounces sold.
Porcupine, Canada. Gold production was generally in line with the prior year. Costs applicable to sales per gold ounce increased 6% primarily due to higher contracted services costs and higher mill maintenance costs. Depreciation and amortization per gold ounce increased 20% primarily due to higher depreciation rates as a result of higher gold ounces mined. All-in sustaining costs per gold ounce increased 14% primarily due to higher costs applicable to sales per gold ounce, higher reclamation costs, and higher sustaining capital spend.
Éléonore, Canada. Gold production increased 25% primarily due to higher ore grade milled and higher mill throughput. Costs applicable to sales per gold ounce decreased 9% primarily due to higher gold ounces sold, partially offset by higher maintenance costs for underground equipment and higher materials costs. Depreciation and amortization per gold ounce decreased 27% primarily due to higher gold ounces sold. All-in sustaining costs per gold ounce was generally in line with the prior year.
Peñasquito, Mexico. Gold production decreased 52% primarily due to the Peñasquito labor strike, lower mill recovery and lower ore grade milled. Gold equivalent ounces – other metals production decreased 27% primarily due to a change in GEO pricing, noted above, that had an unfavorable impact to the calculated gold equivalent ounces - other metals produced of 16%, and lower other metals produced of 11%, as a result of the Peñasquito labor strike and lower mill recovery, partially offset by higher ore grade milled. Costs applicable to sales per gold ounce increased 27% primarily due to lower gold ounces sold partially offset by lower energy, materialsat Turquoise Ridge and contracted services costs as a result of the Peñasquito labor strike and lower workers' participation costs due to the Peñasquito profit-sharing agreement entered into by the Company during the second quarter of 2022. Costs applicable to sales per gold equivalent ounce – other metals increased 22% primarily due to lower gold equivalent ounces - other metals soldCortez and higher inventory write-downs, partially offset by lower workers' participationsurface mining costs due to the Peñasquito profit-sharing agreement entered into by the Company during the second quarter of 2022. Depreciation and amortization per gold ounce increased 21% primarily due to lower gold ounces sold, partially offset by lower depreciation rates as a result of lower gold ounces mined. Depreciation and amortization per gold equivalent ounces – other metals increased 18% primarily due to lower gold equivalent ounces - other metals sold, partially offset by lower depreciation rates as a result of lower gold equivalent ounces - other metals mined. All-in sustaining costs per gold ounce increased 31% primarily due to higher costs applicable to sales per gold ounce, partially offset by lower sustaining capital spend. All-in sustaining costs per gold equivalent ounce – other metals increased 29% primarily due to lower gold equivalent ounces - other metals sold.
Merian, Suriname. Gold production decreased 31% primarily due to lower ore grade milled and lower mill throughput as a result of changes in mine sequencing and a build-up of in-circuit inventory as a result of unplanned mill maintenance downtime in the current year. Costs applicable to sales per gold ounce increased 34% primarily due to lower gold ounces sold. Depreciation and amortization per gold ounce increased 16% primarily due to lower gold ounces sold. All-in sustaining costs per gold ounce increased 42% primarily due to higher costs applicable to sales per gold ounce and higher sustaining capital spend.
Cerro Negro, Argentina. Gold production decreased 19% primarily due to lower ore grade milled, partially offset by higher mill throughput. Costs applicable to sales per gold ounce increased 45% primarily due to higher equipment maintenance costs, higher materials and contracted service costs resulting from cost inflation and lower gold ounces sold.at Cortez. Depreciation and amortization per gold ounce was generally in line with the prior year. All-in sustaining costs per gold ounce increased 39%12% primarily due to higher costsCosts applicable to sales per gold ounce.ounce and sustaining capital spend at Carlin.
Yanacocha, Peru.CC&V, U.S. Gold production decreased 9%42% primarily due to lower leach pad production.production as a result of lower recoveries and lower ore tonnes mined. Costs applicable to sales per gold ounce increased 11%31% primarily due to higher contracted services costs, inventory write-downs and lower gold ounces sold. Depreciation and amortization per gold ounce decreased 6%22% primarily due to lowercessation of depreciation fromand amortization in March 2024 as a higher build-upresult of inventory inclassifying the current year, partially offset by lower gold ounces sold.asset as held for sale. All-in sustaining costs per gold ounce increased 10%26% primarily due to higher costsCosts applicable to sales per gold ounce and higher advanced project and exploration costs, partially offset by lower sustaining capital spend.ounce.
Boddington, Australia.Musselwhite, Canada. Gold production was generally in line with the prior year. Gold equivalent ounces – other metals production increased 14%20% primarily due to higher other metals produced of 23% as a result of higher ore grade milled, partially offset by a change in GEO pricing, noted above, that had an unfavorable impact to the calculated gold equivalent ounces - other metals produced of 9%.milled. Costs applicable to sales per gold ounce decreased 11% primarily due to higher gold ounces sold. Depreciation and amortization per gold ounce decreased 14% primarily due to cessation of depreciation and amortization in March 2024 as a result of classifying the asset as held for sale. All-in sustaining costs per gold ounce increased 5% primarily due to higher sustaining capital spend, partially offset by lower Costs applicable to salesper gold equivalentounce.
Porcupine, Canada. Gold production decreased 8% primarily due to lower ore grade milled partially offset by higher mill throughput. Costs applicable to sales per gold ounce – other metals sold were generally in line with the prior year. Depreciation and amortization per gold ounce and decreased 17% primarily due to cessation of depreciation and amortization in March 2024 as a result of classifying the asset as held for sale. All-in sustaining costs per gold equivalent ounce – other metals were generally in line with the prior year. All-in sustaining costs per gold ounce and all-in sustaining costs per gold equivalent ounce – other metals increased 13% and 13%, respectively, primarily due to higher sustaining capital spend.
Tanami, Australia.Éléonore, Canada. Gold production decreased 19%15% primarily due to the Tanami rainfall event.lower ore grade milled. Costs applicable to sales per gold ounce increased 34% primarily due to lower gold ounces sold, higher underground maintenance costs and higher power costs as a result of higher natural gas prices, partially offset by a favorable Australian dollar foreign currency exchange rate. Depreciation and amortization per gold ounce increased 29%32% primarily due to lower gold ounces sold and asset additions. All-in sustaining costs per gold ounce increased 27% primarily due to higher costs applicable to sales per gold ounce.
Ahafo, Ghana. Gold production increased 10% primarily due to higher ore grade milled, partially offset by lower mill throughput. Costs applicable to sales per gold ounce was generally in line with the prior year. Depreciationlabor and amortization per gold ounce was generally in line with the prior year. All-in sustaining costs per gold ounce increased 11% primarily due to higher sustaining capital spend and lower gold ounces sold. In February, there was a conveyor failure from one of the primary crusher conveyors that feed the mill stockpile. The site is re-routing ore to the mill in order to minimize impacts to production and developing plans to re-build the conveyor, which it expects to commission later this year. The Company is working with its insurers and expects available insurance proceeds to substantially cover the costs of the conveyor rebuild as well as business interruption that resulted from this event.
Akyem, Ghana. Gold production decreased 40% primarily due to lower mill throughput and lower production at Akyem to re-sequence the mine plan and temporarily suspend mining in the main pit to make safety improvements and fortify the catch berms above the haul road into the pit. Costs applicable to sales per gold ounce increased 28% primarily due to lower gold ounces sold, partially offset by lower royalty payments and lower labor, energy and equipment maintenancecontracted services costs.Depreciation and amortization per gold ounce increased 36% primarily due to lower gold ounces sold. All-in sustaining costs per gold ounce increased 38% primarily due to higher costs applicable to sales per gold ounce and higher sustaining capital spend.
NGM, U.S. Attributable gold production decreased 5% primarily due to lower mill throughput at Carlin and Cortez and lower leach pad production at Long Canyon due to the ramp down of mining, partially offset by higher ore grade milled at Carlin and Cortez, and higher mill recovery at Carlin. Costs applicable to sales per gold ounce increased 12% primarily due to higher maintenance costs, higher energy costs due to cost inflation and lower gold ounces sold at Carlin and Long Canyon, partially offset by higher gold ounces sold at Cortez and Turquoise Ridge. Depreciation and amortization per gold ounce decreased 11% primarily due to higher gold ounces sold at Turquoise Ridgecessation of depreciation and Cortez.amortization in March 2024 as a result of classifying the asset as held for sale. All-in sustaining costs per gold ounce increased 19%35% primarily due to higher costsCosts applicable to sales per gold ounce.
Akyem, Ghana. Gold production was generally in line with the prior year. Costs applicable to sales per gold ounce increased 24% primarily due to a drawdown of stockpile inventory and lower gold ounces sold. Depreciation and amortization per gold ounce increased 7% primarily due to higher depreciation from a drawdown of inventory and lower gold ounces sold, partially offset by cessation of depreciation and amortization in March 2024 as wella result of classifying the asset as held for sale. All-in sustaining costs per gold ounce increased 18% primarily due to higher sustaining capital spend at Carlin and Cortez.Costs applicable to sales per gold ounce.
Pueblo Viejo, Dominican Republic. Attributable gold production decreased 20%10% primarily due lower mill recovery associated with the commissioning of the mill expansion, and a buildup of in-circuit inventory compared to lowera drawdown in the prior year, partially offset by higher ore grade milled and lower mill throughput.milled. Refer to Note 1113 of the Condensed Consolidated Financial Statements for further discussion of our equity method investments.
Foreign Currency Exchange Rates
Our foreign operations sell their gold, copper, silver, lead and zinc production based on USD metal prices. Therefore, fluctuations in foreign currency exchange rates do not have a material impact on our revenue. Despite selling gold and silver in London, we have no exposure to the euro or the British pound.
Foreign currency exchange rates can increase or decrease profits to the extent costs are paid in foreign currencies, including the Australian dollar, the Canadian dollar, the Mexican peso, the Argentine peso, the Peruvian sol, the Surinamese dollar, the Ghanaian cedi, and the Ghanaian cedi.Papua New Guinean kina. Approximately 48% and 49%58% of Costs applicable to sales were paid in currencies other than the USD during the three and six months ended June 30, 2023, respectively,March 31, 2024, as follows:
| | | | | | | | | | | |
| Three Months Ended
June 30, 2023 | | Six Months Ended
June 30, 2023 |
| Australian dollar | 17 | % | | 18 | % |
| Canadian dollar | 14 | % | | 14 | % |
| Mexican peso | 8 | % | | 9 | % |
| Argentine peso | 5 | % | | 5 | % |
| Peruvian sol | 2 | % | | 2 | % |
| Surinamese dollar | 2 | % | | 1 | % |
| Ghanaian cedi | — | % | | — | % |
| | | | | | | |
| | | Three Months Ended
March 31, 2024 |
| Australian dollar | | | 23 | % |
| Canadian dollar | | | 15 | % |
| Papua New Guinean Kina | | | 8 | % |
| Mexican peso | | | 6 | % |
| Argentine peso | | | 3 | % |
| Peruvian sol | | | 2 | % |
| Surinamese dollar | | | 1 | % |
| Ghanaian cedi | | | — | % |
Variations in the local currency exchange rates in relation to the USD at our foreign mining operations decreased Costs applicable to sales by $88 and $78$137 per gold ounce during the three and six months ended June 30, 2023March 31, 2024 compared to the same periodsperiod in 2022, respectively,2023. The decrease was primarily due to significant currency devaluation in Argentina that occurred in the first quarter of 2024. Excluding the impact of the Argentine peso devaluation, Costs applicable to sales decreased by $27 per gold ounce resulting from variations in the local currency exchange rates in relation to the USD at our other foreign mining operations.
Variations in the local currency exchange rates in relation to the USD at our foreign mining operations increased Costs applicable to sales $9 per gold equivalent ounce, primarily in Argentina, Australia,Mexico, during the three months ended March 31, 2024 compared to the same period in 2023.
Our Ahafo and Canada.Akyem mines, located in Ghana, are USD functional currency entities. Ghana has experienced significant inflation over the last three years and has a highly inflationary economy. In 2021, the Bank of Ghana created a gold purchase program in the effort to stabilize the local currency and build up gold reserves through domestic gold purchases conducted in local currency at prevailing market rates. As the gold purchase program was voluntary, there was no significant impact to Ahafo. The majority of Ahafo’s activity has historically been denominated in USD; as a result, the devaluation of the Ghanaian cedi has resulted in an immaterial impact on our financial statements. Therefore, future devaluation of the Ghanaian cedi is not expected to have a material impact on our financial statements.
Our Cerro Negro mine, located in Argentina, is a USD functional currency entity. Argentina ishas experienced significant inflation over the last three years and has a hyperinflationaryhighly inflationary economy. In recent years, Argentina’s central bank enacted a number of foreign currency controls in an effort to stabilize the local currency, including requiring the Company to convert USD proceeds from metal sales to local currency within 60 days from shipment date or five business days from receipt of cash, whichever happens first, as well as restricting payments to foreign-related entities denominated in foreign currency, such as dividends or distributions to the parent and related companies and royalties and other payments to foreign beneficiaries. These restrictions directly impact Cerro Negro's ability to repay intercompany debt to the Company. We continue to monitor the foreign currency exposure risk and the limitations of repatriating cash to the U.S. Currently, these currency controls are not expected to have a material impact on our consolidated financial statements or disclosures.statements.
Our Merian mine, located in the country of Suriname, is a USD functional currency entity. Suriname has experienced significant inflation over the last three years and ishas a highly inflationary economy. In 2021, the Central Bank took steps to stabilize the local currency, while the government introduced new legislation to narrow the gap between government revenues and spending. The measures to increase government revenue mainly consist of tax increases; however, Newmont and the Republic of Suriname have a Mineral Agreement in place that supersedes such measures. Despite steps taken by theThe Central Bank of Suriname adopted a controlled floating rate system, which resulted in a concurrent devaluation of the Surinamese Dollar has continued to devalue.dollar. The majority of Merian’s activity has historically been denominated in USD; as a result, the devaluation or depreciation of the Surinamese dollar has resulted in an immaterial impact on our financial statements. Therefore, future devaluation or depreciation of the Surinamese dollar is not expected to have a material impact on our consolidated financial statements or disclosures.statements.
Liquidity and Capital Resources
Liquidity Overview
We have a disciplined capital allocation strategy of maintaining financial flexibility to execute our capital priorities and generate long-term value for our shareholders. Consistent with that strategy, we aim to self-fund development projects and make strategic partnerships focused on profitable growth, while reducing our debt and returning cash to stockholders through dividends and share repurchases.
The Company continues to experience the impacts from geopolitical and macroeconomic pressures. With the resulting volatile environment, we continue to monitor inflationary conditions, the effects of certain countermeasures taken by central banks, and the potential for further supply chain disruptions, as well as an uncertain and evolving labor market. Depending on the duration and extent
of the impact of these events, or changes in commodity prices, the prices for gold and other metals, and foreign exchange rates, we could continue to experience volatility; transportation industry disruptions could continue, including limitations on shipping produced metals; our supply chain could continue to experience disruption; cost inflation rates could further increase; or we could incur credit related losses of certain financial assets, which could materially impact our results of operations, cash flows and financial condition.
In early 2023, the banking industry experienced adversity in which certain banks encountered failures, take-overs, and entrance into receivership or insolvency, amongst other events. Further instability in the banking system could put the liquidity of Newmont and third parties with which we do business at risk. The Company maintains strict adherence to its cash investment policies which focus on highly rated investments and capital preservation mechanisms to achieve our strategic objectives.
As of June 30, 2023,March 31, 2024, we believe our available liquidity allows us to manage the short- and, possibly, long-term material adverse impacts of these events on our business. Refer to Note 2 of the Condensed Consolidated Financial Statements for further discussion on risks and uncertainties.
At June 30, 2023,March 31, 2024, the Company had $2,829$2,678 of cash and cash equivalents, of which $2,336 was included in Cash and cash equivalentsand $342 was included in Current assets held for sale related to certain non-core assets that were classified as held for sale in the first quarter of 2024. The majority of our cash and cash equivalents are invested in a variety of highly liquid investments with original maturities of three months or less. At June 30, 2023, the Company had
$374 in time deposits with a maturity of more than three months but less than one year, which are included in Time deposits and other investments. Our Cash and cash equivalentsand time deposits are highly liquid and low-risk investments that are available to fund our operations as necessary. We may have investments in prime money market funds that are classified as cash and cash equivalents; however, we continually monitor the need for reclassification under the SEC requirements for money market funds, and the potential that the shares of such funds could have a net asset value of less than their par value. We believe that our liquidity and capital resources are adequate to fund our operations and corporate activities.
At June 30, 2023, $1,062March 31, 2024, $1,232 of Cash and cash equivalents was held in foreign subsidiaries and is primarily held in USD denominated accounts with the remainder in foreign currencies readily convertible to USD. Cash and cash equivalents denominated in Argentine peso are subject to regulatory restrictions. Refer to Foreign Currency Exchange Rates above for further information. At June 30, 2023, $814March 31, 2024, $1,173 in consolidated cash and cash equivalents was held at certain foreign subsidiaries that, if repatriated, may be subject to withholding taxes. We expect that there would be no additional tax burden upon repatriation after considering the cash cost associated with theany potential withholding taxes.
We believe our existing consolidated Cash and cash equivalents, time deposits, available capacity on our revolving credit facility, and cash generated from continuing operations will be adequate to satisfy working capital needs, fund future growth, meet debt obligations and meet other liquidity requirements for the foreseeable future. At June 30, 2023,March 31, 2024, our borrowing capacity on our revolving credit facility was $3,000$4,000 and we had no borrowings outstanding. We continue to remain compliant with covenants and do not currently anticipate any events or circumstances that would impact our ability to access funds available on this facility. Refer to Note 16 of the Condensed Consolidated Financial Statements for further information on our Debt.
Our financial position was as follows:
| | | | | | | | | | | |
| At June 30,
2023 | | At December 31,
2022 |
| Cash and cash equivalents | $ | 2,829 | | | $ | 2,877 | |
Time deposits (1) | 374 | | | 829 | |
| Borrowing capacity on revolving credit facility | 3,000 | | | 3,000 | |
| Total liquidity | $ | 6,203 | | | $ | 6,706 | |
Net debt (2) | $ | 2,908 | | | $ | 2,426 | |
| | | | | | | | | | | |
| At March 31,
2024 | | At December 31,
2023 |
| Cash and cash equivalents | $ | 2,336 | | | $ | 3,002 | |
Cash and cash equivalents included in current assets held for sale (1) | 342 | | | — | |
| | | |
Available borrowing capacity on revolving credit facilities (2) | 4,000 | | | 3,077 | |
| Total liquidity | $ | 6,678 | | | $ | 6,079 | |
Net debt (3) | $ | 6,790 | | | $ | 6,434 | |
____________________________
(1)Time deposits are included inDuring the first quarter of 2024, certain non-core assets were determined to meet the criteria for assets held for sale. As a result, the related assets and liabilities, including $342 of Time depositsCash and other investmentscash equivalents, were reclassified to Current assets held for sale onand Current liabilities held for sale, respectively. Refer to Note 5 of the Condensed Consolidated Balance Sheets.Financial Statements for additional information.
(2)In connection with the Newcrest transaction, the Company acquired bilateral bank facilities held with 13 banks. The bilateral bank debt facilities had a total borrowing capacity of $2,000 with $77 available at December 31, 2023, which were repaid in full in the first quarter of 2024. Additionally, the revolving credit facility was amended in February 2024 to increase the available borrowing capacity to $4,000. Refer to Note 1116 of the Condensed Consolidated Financial Statements for further information.
(2)(3)Net debt is a non-GAAP financial measure used by management to evaluate financial flexibility and strength of the Company's balance sheet. Refer to Non-GAAP Financial Measures, below.
Cash Flows
Net cash provided by (used in) operating activities of continuing operations was $1,137$776 during the sixthree months ended June 30, 2023, a decreaseMarch 31, 2024, an increase in cash provided of $585$295 from the sixthree months ended June 30, 2022,March 31, 2023, primarily due to a decreasean increase in sales resulting from lower sales volumes for all metals except for copper, an increase in operating cash expenditures resulting from the impacts arising from the significant inflation experienced globally, and a buildup of inventory compared to the same period in 2022,higher average realized price for gold, partially offset by higher average realized pricespayment of $291 for gold and silver.stamp duty tax largely accrued in the fourth quarter of 2023 in connection with the Newcrest transaction.
Net cash provided by (used in) investing activities was $(500)$(798) during the sixthree months ended June 30, 2023, a decreaseMarch 31, 2024, an increase in cash used of $534$456 from the sixthree months ended June 30, 2022,March 31, 2023, primarily due to higher net maturities of time depositscapital expenditures in 2023,2024 and proceeds received on the sale of the Triple Flag investment in 2023, and the payment to Buenaventura relating to the sale2023.
Net cash provided by (used in) financing activities was $(684)$(299) during the sixthree months ended June 30, 2023,March 31, 2024, a decrease in cash used of $733$51 from the sixthree months ended June 30, 2022,March 31, 2023, primarily due to the acquisitionnet proceeds of noncontrolling interest in Yanacocha in 2022,debt transactions and lower dividend payments in 2023,2024. Refer to Note 16 of the Condensed Consolidated Financial Statements for additional information on our Debt and higher net repayments of debt in 2022.related transactions.
Capital Resources
In July 2023,April 2024, the Board declared a dividend of $0.40$0.25 per share, determined under the dividend framework. This framework is non-binding and is periodically reviewed and reassessed by the Board of Directors.share. The declaration and payment of future dividends remains at the full discretion of the Board and will depend on the Company’s financial results, cash requirements, future prospects and other factors deemed relevant by the Board.
In February 2024, the Board of Directors authorized a stock repurchase program to repurchase shares of outstanding common stock to offset the dilutive impact of employee stock award vesting and to provide returns to shareholders, provided that the aggregate value of shares of common stock repurchased under the new program does not exceed $1 billion. The program will expire after 24 months (in February 2026). The program will be executed at the Company’s discretion. The repurchase program may be discontinued at any time, and the program does not obligate the Company to acquire any specific number of shares of its common stock or to repurchase the full authorized amount during the authorization period. Consequently, the Board of Directors may revise or terminate such share repurchase authorization in the future. No share repurchases occurred for the three months ended March 31, 2024.
Capital Expenditures
Cash generated from operations is used to execute our capital priorities, which include sustaining and developing our global portfolio of long-lived assets. Our near-term development capital projects include Tanami Expansion 2 and Ahafo North, as well as the Cadia Block Caves project which was acquired in the Newcrest transaction. These projects are being funded from existing liquidity and will continue to be funded from future operating cash flows.
We consider sustaining capital as those capital expenditures that are necessary to maintain current production and execute the current mine plan. Capital expenditures to develop new operations or related to projects at existing operations, where these projects will enhance production or reserves, are considered non-sustaining or development capital. The Company’s decision to reprioritize, sell or abandon a development project, which may include returning mining concessions to host governments, could result in a future impairment charge.
Additionally, as part of our ESG initiatives, in November 2021, Newmont announced a strategic alliance with CAT and pledged a preliminary investment of $100 with the aim to develop and implement a comprehensive all-electric autonomous mining system to achieve zero emissions mining. Newmont has paid $39, all$56 as of which occurred in 2022,March 31, 2024, and the remaining pledged amount is anticipated to be paid as certain milestones are reached through 2025. Payments are recognized in Advanced projects, research and development within our Condensed Consolidated Statements of Operations.
Other investments supporting our climate change initiatives are expected to include emissions reduction projects and renewable energy opportunities as we seek to achieve these climate targets. For risks related to climate-related capital expenditures, seerefer to Part I, Item 1A, Risk Factors of our Annual Report on Form 10-K for the year ended December 31, 20222023 filed with the SEC on February 23, 2023.29, 2024.
For additional information on our capital expenditures, refer to Part II, Item 7, Liquidity and Capital Resources of our Annual Report on Form 10-K for the year ended December 31, 20222023 filed with the SEC on February 23, 2023.29, 2024.
For the sixthree months ended June 30,March 31, 2024 and 2023, and 2022, we had Additions to property, plant and mine development, inclusive of capitalized interest, as follows:
| | 2023 | | 2022 |
| Development Projects | | Sustaining Capital | | Total | | Development Projects | | Sustaining Capital | | Total |
| CC&V | $ | — | | | $ | 23 | | | $ | 23 | | | $ | — | | | $ | 18 | | | $ | 18 | |
Musselwhite | — | | | 45 | | | 45 | | | 1 | | | 17 | | | 18 | |
Porcupine | 33 | | | 25 | | | 58 | | | 54 | | | 22 | | | 76 | |
Éléonore | — | | | 45 | | | 45 | | | 2 | | | 21 | | | 23 | |
| 2024 | | | 2024 | | 2023 |
| Development Projects | | | Development Projects | | Sustaining Capital | | Total | | Development Projects | | Sustaining Capital | | Total |
Brucejack (1) | |
Red Chris (1) | |
| Peñasquito | Peñasquito | — | | | 72 | | | 72 | | | 6 | | | 82 | | | 88 | |
| Merian | Merian | — | | | 35 | | | 35 | | | — | | | 24 | | | 24 | |
Cerro Negro | Cerro Negro | 51 | | | 23 | | | 74 | | | 38 | | | 22 | | | 60 | |
| Yanacocha | Yanacocha | 121 | | | 7 | | | 128 | | | 135 | | | 11 | | | 146 | |
| Boddington | Boddington | — | | | 74 | | | 74 | | | 2 | | | 33 | | | 35 | |
| Tanami | Tanami | 136 | | | 53 | | | 189 | | | 127 | | | 51 | | | 178 | |
Cadia (1) | |
Lihir (1) | |
| Ahafo | Ahafo | 87 | | | 80 | | | 167 | | | 94 | | | 43 | | | 137 | |
| Akyem | 2 | | | 20 | | | 22 | | | 4 | | | 16 | | | 20 | |
| NGM | NGM | 58 | | | 149 | | | 207 | | | 35 | | | 103 | | | 138 | |
| Corporate and Other | Corporate and Other | — | | | 27 | | | 27 | | | 9 | | | 13 | | | 22 | |
Held for sale (2) | |
| CC&V | |
| CC&V | |
| CC&V | |
| Musselwhite | |
| Porcupine | |
| Éléonore | |
Telfer (1) | |
| Akyem | |
| Accrual basis | Accrual basis | $ | 488 | | | $ | 678 | | | $ | 1,166 | | | $ | 507 | | | $ | 476 | | | $ | 983 | |
| Decrease (increase) in non-cash adjustments | Decrease (increase) in non-cash adjustments | | | | | (24) | | | | | | | (27) | |
| Cash basis | Cash basis | | $ | 1,142 | | | $ | 956 | |
____________________________
(1)Sites acquired through the Newcrest transaction during the fourth quarter of 2023. Refer to Note 3 of the Condensed Consolidated Financial Statements for further information.
(2)Sites are classified as held for sale as of March 31, 2024. Refer to Note 5 of the Condensed Consolidated Financial Statements for further discussion of our assets and liabilities held for sale.
For the sixthree months ended June 30, 2023,March 31, 2024, development capital projects primarily included Red Chris Block Caves; Pamour at Porcupine,Porcupine; Cerro Negro expansion projects,projects; Yanacocha Sulfides,Sulfides; Tanami Expansion 2,2; Cadia Block Caves; Ahafo North,North; and the TS Solar Plant and Goldrush Complex at NGM. Development capital costs (excluding capitalized interest) on our Tanami Expansion, Ahafo North project, and Cadia Block Caves projects since approval were $283,$806, $434, and $76, respectively, of which $71$54, $59, and $40 related to the sixthree months ended June 30, 2023. Development capital costs (excluding capitalized interest) on our Tanami Expansion 2 project since approval were $617, of which $118 related to the six months ended June 30, 2023.March 31, 2024, respectively.
For the sixthree months ended June 30, 2022,March 31, 2023, development capital projects primarily included Pamour at Porcupine, Yanacocha Sulfides,Porcupine; Cerro Negro expansion projects,projects; Yanacocha Sulfides; Tanami Expansion 2,2; Ahafo North,North; and Goldrush Complex at NGM.
Sustaining capital includes capital expenditures such as underground and surface mine development, capitalized component purchases, tailings facility construction, mining equipment, capitalized component purchasesinfrastructure improvements, reserves drilling conversion, water storage and support facilities, and water treatment plant construction.
Refer to Note 34 of the Condensed Consolidated Financial Statements and Non-GAAP Financial Measures, "All-In Sustaining Costs", below, for further information.
Debt
Debt and Corporate Revolving Credit Facilities. There were no material changes to our debt and corporate revolving credit facilities since December 31, 2022. Refer to Part II, Item 7 of our Annual report on Form 10-K forIn connection with the year ended December 31, 2022, for information regarding our debt and corporate revolving credit facilities.
In April 2023,Newcrest transaction, the Company entered intoacquired bilateral bank debt facilities (the "bilateral facilities") held with 13 banks. The bilateral facilities due February 7, 2024 include the 3 banks that exercised their option under the change of effective control event. On February 7, 2024, the Company repaid the 3 non-consenting banks with a total borrowing capacity of $462. On February 15, 2024, the Company completed an agreement (the “Second Amendment”) to amend certain termsamendment and restatement of theits existing $3,000 revolving credit agreement dated as of April 4, 2019 as amended by(the “Existing Credit Agreement”). The Existing Credit Agreement was entered into with a syndicate of financial institutions and provided for borrowings in U.S. dollars and contained a letter of credit sub-facility. Per the first amendment, dated asthe expiration date of the credit facility was extended from March 30, 2021. The Second Amendment provides2026 to February 15, 2029 and
the borrowing capacity was increased to $4,000. Interest is based on Term SOFR plus a credit spread adjustment and margin. Concurrently, the Company utilized the $4,000 revolving credit agreement and used the proceeds thereof to repay the remaining $1,461 owed on the remaining bilateral facilities.
In March 2024, we issued $2,000 of unsecured Senior Notes comprised of $1,000 due March 30, 2026 (“2026 Senior Notes”) and $1,000 due March 30, 2034 ("2034 Senior Notes"). Net proceeds from the 2026 and 2034 Senior Notes were $1,980, which were used to fully repay the drawdown on the revolving credit facility. Interest will be paid semi-annually at a rate of 5.30% and 5.35% per annum for the replacement of LIBOR-based rates with SOFR-based rates. Debt covenants under2026 and the Second Amendment are substantially the same as the existing credit agreement.2034 Senior Notes, respectively.
Debt Covenants. There were no material changes to our debt covenants. Refer to Part II, Item 7 of our Annual Report on Form 10-K for the year ended December 31, 2022,2023, for information regarding our debt covenants. At June 30, 2023,March 31, 2024, we were in compliance with all existing debt covenants and provisions related to potential defaults.
Co-Issuer and Supplemental Guarantor Information. The Company filed a shelf registration statement with the SEC on Form S-3 under the Securities Act, as amended, which enables us to issue an indeterminate number or amount of common stock, preferred stock, depository shares, debt securities, guarantees of debt securities, warrants and units (the “Shelf Registration Statement”). Under the Shelf Registration Statement, our debt securities may be guaranteed by Newmont USA Limited (“Newmont USA”), one of our consolidated subsidiaries (Newmont,subsidiaries.
Newmont and Newcrest Finance Pty Ltd ("Newcrest Finance"), as issuer,issuers, and Newmont USA, as guarantor, are collectively referred to here-within as the “Obligor Group”)"Obligor Group".
These guarantees are full and unconditional, and none of our other subsidiaries guarantee any security issued and outstanding. The cash provided by operations of the Obligor Group, and all of its subsidiaries, is available to satisfy debt repayments as they become due, and there are no material restrictions on the ability of the Obligor Group to obtain funds from subsidiaries, including funds at subsidiaries classified as assets held for sale by dividend, loan, or otherwise, except to the extent of any rights of noncontrolling interests or regulatory restrictions limiting repatriation of cash. Net assets attributable to noncontrolling interests were $190$185 and $179$178 at June 30, 2023March 31, 2024 and December 31, 2022,2023, respectively. All noncontrolling interests relate to non-guarantor subsidiaries. For further information on our noncontrolling interests, refer to Note 1 of the Condensed Consolidated Financial Statements.
Newmont and Newmont USA are primarily holding companies with no material operations, sources of income or assets other than equity interest in their subsidiaries and intercompany receivables or payables. Newcrest Finance is a finance subsidiary with no material assets or operations other than those related to issued external debt. Newmont USA’s primary investments are comprised of its 100% interest in Yanacocha and its 38.5% interest in NGM. For further information regarding these and our other operations, refer to Note 34 of the Condensed Consolidated Financial Statements and Results of Consolidated Operations within Part I, Item 2, MD&A.
In addition to equity interests in subsidiaries, the Obligor Group’s balance sheets consisted primarily of the following intercompany assets, intercompany liabilities and external debt. The remaining assets and liabilities of the Obligor Group are considered immaterial at June 30, 2023March 31, 2024 and December 31, 2022.2023.
| | At June 30, 2023 | | At December 31, 2022 |
| Obligor Group | | Newmont USA | | Obligor Group | | Newmont USA |
| At March 31, 2024 | | | At March 31, 2024 | | At December 31, 2023 |
| Obligor Group | | | Obligor Group | | Newmont USA | | Obligor Group | | Newmont USA |
| Current intercompany assets | Current intercompany assets | $ | 12,440 | | | $ | 8,165 | | | $ | 13,982 | | | $ | 5,815 | |
| Non-current intercompany assets | Non-current intercompany assets | $ | 544 | | | $ | 530 | | | $ | 520 | | | $ | 506 | |
| Current intercompany liabilities | Current intercompany liabilities | $ | 11,757 | | | $ | 2,802 | | | $ | 13,118 | | | $ | 1,907 | |
| | Current external debt | |
| Non-current intercompany liabilities | |
| Non-current external debt | Non-current external debt | $ | 5,567 | | | $ | — | | | $ | 5,564 | | | $ | — | |
Newmont USA's subsidiary guarantees (the “subsidiary guarantees”) are general unsecured senior obligations of Newmont USA and rank equal in right of payment to all of Newmont USA's existing and future senior unsecured indebtedness and senior in right of payment to all of Newmont USA's future subordinated indebtedness. The subsidiary guarantees are effectively junior to any secured indebtedness of Newmont USA to the extent of the value of the assets securing such indebtedness.
At June 30, 2023,March 31, 2024, Newmont USA had approximately $5,567$8,926 of consolidated indebtedness (including guaranteed debt), all of which relates to the guarantees of indebtedness of Newmont.
Under the terms of the subsidiary guarantees, holders of Newmont’s securities subject to such subsidiary guarantees will not be required to exercise their remedies against Newmont before they proceed directly against Newmont USA.
Newmont USA will be released and relieved from all its obligations under the subsidiary guarantees in certain specified circumstances, including, but not limited to, the following:
•upon the sale or other disposition (including by way of consolidation or merger), in one transaction or a series of related transactions, of a majority of the total voting power of the capital stock or other interests of Newmont USA (other than to Newmont or any of Newmont’s affiliates);
•upon the sale or disposition of all or substantially all the assets of Newmont USA (other than to Newmont or any of Newmont’s affiliates); or
•upon such time as Newmont USA ceases to guarantee more than $75 aggregate principal amount of Newmont’s debt (at June 30, 2023,March 31, 2024, Newmont USA guaranteed $600 aggregate principal amount of debt of Newmont that did not contain a similar fall-away provision).
Newmont’s debt securities are effectively junior to any secured indebtedness of Newmont to the extent of the value of the assets securing such indebtedness, and structurally subordinated to all debt and other liabilities of Newmont’s non-guarantor subsidiaries. At June 30, 2023,March 31, 2024, (i) Newmont’s total consolidated indebtedness was approximately $6,111,$9,468, none of which was secured (other than $537$535 of Lease and other financing obligations), and (ii) Newmont’s non-guarantor subsidiaries had $4,968$7,464 of total liabilities (including trade payables, but excluding intercompany and external debt and reclamation and remediation liabilities), which would have been structurally senior to Newmont’s debt securities.
For further information on our debt, refer to Note 1416 of the Condensed Consolidated Financial Statements.
Contractual Obligations
As of June 30, 2023,March 31, 2024, there have beenbeen no material changes, outside the ordinary course of business, in our contractual obligations since December 31, 2022.2023. Refer to Part II, Item 7 of our Annual Report on Form 10-K for the year ended December 31, 2022,2023, filed with the SEC on February 23, 2023,29, 2024, for information regarding our contractual obligations.
Environmental
Our mining and exploration activities are subject to various federal and state laws and regulations governing the protection of the environment. We have made, and expect to make in the future, expenditures to comply with such laws and regulations, but cannot predict the full amount of such future expenditures. We perform a comprehensive review of our reclamation and remediation liabilities annually and review changes in facts and circumstances associated with these obligations at least quarterly.
For a complete discussion of the factors that influence our reclamation obligations and the associated risks, refer to Part II, Item 7, Managements’ Discussion and Analysis of Consolidated Financial Condition and Results of Operations under the headings Environmental and “Critical Accounting Estimates” and refer to Part I, Item 1A, Risk Factors under the heading “Mine closure, reclamation and remediation costs for environmental liabilities may exceed the provisions we have made” of our Annual Report on Form 10-K for the year ended December 31, 2022,2023, filed with the SEC on February 23, 2023.29, 2024.
Our sustainability strategy is a foundational element in achieving our purpose to create value and improve lives through sustainable and responsible mining. Sustainability and safety are integrated into the business at all levels of the organization through our global policies, standards, strategies, business plans and remuneration plans. For additional information on the Company’s reclamation and remediation liabilities, refer to Notes 57 and 1820 of the Condensed Consolidated Financial Statements.
Non-GAAP Financial Measures
Non-GAAP financial measures are intended to provide additional information only and do not have any standard meaning prescribed by GAAP. These measures should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP. Refer to Non-GAAP Financial Measures within Part II, Item 7 within our Form 10-K for the year ended December 31, 2022,2023, filed with the SEC on February 23, 202329, 2024 for further information on the non-GAAP financial measures presented below, including why management believes that its presentation of non-GAAP financial measures provides useful information to investors.
Earnings before interest, taxes, depreciation and amortization and Adjusted earnings before interest, taxes, depreciation and amortization
Net income (loss) attributable to Newmont stockholders is reconciled to EBITDA and Adjusted EBITDA as follows:
| | Three Months Ended
June 30, | | Six Months Ended
June 30, |
| 2023 | | 2022 | | 2023 | | 2022 |
| | | Three Months Ended
March 31, | |
| | | Three Months Ended
March 31, | |
| | | Three Months Ended
March 31, | |
| | | | | 2024 | | | | | | | 2024 | | 2023 |
| Net income (loss) attributable to Newmont stockholders | Net income (loss) attributable to Newmont stockholders | $ | 155 | | | $ | 387 | | | $ | 506 | | | $ | 835 | |
| Net income (loss) attributable to noncontrolling interests | Net income (loss) attributable to noncontrolling interests | — | | | 13 | | | 12 | | | 34 | |
Net (income) loss from discontinued operations | Net (income) loss from discontinued operations | (2) | | | (8) | | | (14) | | | (24) | |
| Equity loss (income) of affiliates | Equity loss (income) of affiliates | (16) | | | (17) | | | (41) | | | (56) | |
| Income and mining tax expense (benefit) | Income and mining tax expense (benefit) | 163 | | | 33 | | | 376 | | | 247 | |
| Depreciation and amortization | Depreciation and amortization | 486 | | | 559 | | | 947 | | | 1,106 | |
| Interest expense, net of capitalized interest | Interest expense, net of capitalized interest | 49 | | | 57 | | | 114 | | | 119 | |
| EBITDA | EBITDA | $ | 835 | | | $ | 1,024 | | | $ | 1,900 | | | $ | 2,261 | |
| Adjustments: | Adjustments: | | | | | | | |
(Gain) loss on asset and investment sales, net (1) | $ | — | | | $ | — | | | $ | (36) | | | $ | 35 | |
Newcrest transaction-related costs (2) | 21 | | | — | | | 21 | | | — | |
Restructuring and severance (3) | 10 | | | — | | | 12 | | | 1 | |
Loss on assets held for sale (1) | |
Loss on assets held for sale (1) | |
Loss on assets held for sale (1) | |
Change in fair value of investments (2) | |
Newcrest transaction and integration costs (3) | |
Settlement costs (4) | |
Impairment charges (4)(5) | Impairment charges (4)(5) | 4 | | | 2 | | | 8 | | | 2 | |
Reclamation and remediation charges (5) | (2) | | | — | | | (2) | | | 13 | |
Change in fair value of investments (6) | 42 | | | 135 | | | 1 | | | $ | 96 | |
Pension settlement (7) | — | | | — | | | — | | | 130 | |
Settlement costs (8) | — | | | 5 | | | — | | | 18 | |
| COVID-19 specific costs (9) | — | | | 1 | | | — | | | 1 | |
(Gain) loss on asset and investment sales, net (6) | |
Restructuring and severance (7) | |
Reclamation and remediation charges (8) | |
| Other (10) | — | | | (18) | | | (4) | | | (18) | |
| Other (9) | |
| Other (9) | |
| Other (9) | |
| Adjusted EBITDA | Adjusted EBITDA | $ | 910 | | | $ | 1,149 | | | $ | 1,900 | | | $ | 2,539 | |
____________________________
(1)Loss on assets held for sale, included in Loss on assets held for sale, represents the loss recorded for the six non-core assets and the development project that met the requirements to be presented as held for sale in 2024. Refer to Note 5 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 equity securities.
(3)Newcrest transaction and integration costs, included in Other expense, net, represents costs incurred related to Newmont's acquisition of Newcrest completed in 2023 as well as subsequent integration costs. Refer to Note 3 of the Condensed Consolidated Financial Statements for further information.
(4)Settlement costs, included in Other expense, net, are primarily comprised of wind-down and demobilization costs related to the French Guiana project in 2024 and litigation expenses in 2023.
(5)Impairment charges, included in Other expense, net, represents non-cash write-downs of various assets that are no longer in use and materials and supplies inventories.
(6)(Gain) loss on asset and investment sales, net, included in Other income (loss), net, in 2024 primarily represent the purchase and sale of foreign currency bonds. For 2023, is primarily comprised of the net gain recognized on the exchange of the previously held Maverix investment for Triple Flag and the subsequent sale of the Triple Flag investment. Refer to Note 11 of the Condensed Consolidated Financial Statements for further information. Amounts related to 2022 are primarily comprised of the loss recognized on the sale of the La Zanja equity method investment. Refer to Note 19 of the Condensed Consolidated Financial Statements for further information.
(2)Newcrest transaction-related costs, included in Other expense, net, primarily represents costs incurred related to the Proposed Newcrest Transaction in the second quarter of 2023. Refer to Note 1 of the Condensed Consolidated Financial Statements for further information.
(3)(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.
(4)Impairment charges, included in Other expense, net, represents non-cash write-downs of various assets that are no longer in use and materials and supplies inventories.
(5)(8)Reclamation and remediation charges, included in Reclamation and remediation, represent revisions to reclamation and remediation plans at the Company's former operating properties and historic mining operations that have entered the closure phase and have no substantive future economic value. For further information, refer to Note 5 of the Condensed Consolidated Financial Statements.
(6)Change in fair value of investments, included in Other income (loss), net, primarily represents unrealized gains and losses related to the Company's investments in current and non-current marketable and other equity securities.
(7)Pension settlement, included in Other income (loss), net, represents pension settlement charges in 2022 related to the annuitization of certain defined benefit plans. For further information, refer to Note 7 of the Condensed Consolidated Financial Statements.
(8)Settlement costs, included in Other expense, net, are primarily comprised of a legal settlement and a voluntary contribution made to support humanitarian efforts in Ukraine in 2022.
(9)COVID-19 specific costs, included in Other expense, net, primarily include amounts distributed from Newmont Global Community Support Fund to help host communities, governments and employees combat the COVID-19 pandemic.
(10)Other, included in Other income (loss), net,in 2023, represents income received during the first quarter of 2023, on the favorable settlement of certain matters that were outstanding at the time of sale of the related investment in 2022. Amounts related to 2022 are primarily comprised of a reimbursement of certain historical Goldcorp operational expenses related to a legacy project that reached commercial production in the second quarter of 2022.
Adjusted net income (loss)
Net income (loss) attributable to Newmont stockholders is reconciled to Adjusted net income (loss) as follows:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended
June 30, 2023 | | Six Months Ended
June 30, 2023 |
| | | per share data (1) | | | | per share data (1) |
| | | basic | | diluted | | | | basic | | diluted |
| Net income (loss) attributable to Newmont stockholders | $ | 155 | | | $ | 0.19 | | | $ | 0.19 | | | $ | 506 | | | $ | 0.64 | | | $ | 0.64 | |
| Net loss (income) attributable to Newmont stockholders from discontinued operations | (2) | | | — | | | — | | | (14) | | | (0.02) | | | (0.02) | |
| Net income (loss) attributable to Newmont stockholders from continuing operations | 153 | | | 0.19 | | | 0.19 | | | 492 | | | 0.62 | | | 0.62 | |
| | | | | | | | | | | |
| | | | | | | | | | | |
(Gain) loss on asset and investment sales, net (2) | — | | | — | | | — | | | (36) | | | (0.05) | | | (0.05) | |
| | | | | | | | | | | |
Newcrest transaction-related costs (3) | 21 | | | 0.03 | | | 0.03 | | | 21 | | | 0.03 | | | 0.03 | |
Restructuring and severance (4) | 10 | | | 0.01 | | | 0.01 | | | 12 | | | 0.02 | | | 0.02 | |
Impairment charges (5) | 4 | | | — | | | — | | | 8 | | | 0.01 | | | 0.01 | |
Change in fair value of investments (6) | 42 | | | 0.05 | | | 0.05 | | | 1 | | | — | | | — | |
Reclamation and remediation charges (7) | (2) | | | — | | | — | | | (2) | | | — | | | — | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
Other (8) | — | | | — | | | — | | | (4) | | | — | | | — | |
Tax effect of adjustments (9) | (17) | | | (0.02) | | | (0.02) | | | (1) | | | — | | | — | |
Valuation allowance and other tax adjustments (10) | 55 | | | 0.07 | | | 0.07 | | | 95 | | | 0.11 | | | 0.11 | |
| Adjusted net income (loss) | $ | 266 | | | $ | 0.33 | | | $ | 0.33 | | | $ | 586 | | | $ | 0.74 | | | $ | 0.74 | |
| | | | | | | | | | | |
Weighted average common shares (millions): (11) | | | 795 | | | 795 | | | | | 794 | | | 795 | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | Three Months Ended
March 31, 2024 |
| | | | | | | per share data (1) |
| | | | | | | | | basic | | diluted |
| Net income (loss) attributable to Newmont stockholders | | | | | | | $ | 170 | | | $ | 0.15 | | | $ | 0.15 | |
| Net loss (income) attributable to Newmont stockholders from discontinued operations | | | | | | | (4) | | | — | | | — | |
| Net income (loss) attributable to Newmont stockholders from continuing operations | | | | | | | 166 | | | 0.15 | | | 0.15 | |
Loss on assets held for sale (2) | | | | | | | 485 | | | 0.43 | | | 0.43 | |
| | | | | | | | | | | |
Change in fair value of investments (3) | | | | | | | (31) | | | (0.03) | | | (0.03) | |
Newcrest transaction and integration costs (4) | | | | | | | 29 | | | 0.03 | | | 0.03 | |
Settlement costs (5) | | | | | | | 21 | | | 0.02 | | | 0.02 | |
Impairment charges (6) | | | | | | | 12 | | | 0.01 | | | 0.01 | |
(Gain) loss on asset and investment sales, net (7) | | | | | | | (9) | | | (0.01) | | | (0.01) | |
Restructuring and severance (8) | | | | | | | 6 | | | — | | | — | |
| | | | | | | | | | | |
| | | | | | | | | | | |
Reclamation and remediation charges (9) | | | | | | | 6 | | | — | | | — | |
| | | | | | | | | | | |
Tax effect of adjustments (10) | | | | | | | (147) | | | (0.13) | | | (0.13) | |
Valuation allowance and other tax adjustments (11) | | | | | | | 92 | | | 0.08 | | | 0.08 | |
| Adjusted net income (loss) | | | | | | | $ | 630 | | | $ | 0.55 | | | $ | 0.55 | |
| | | | | | | | | | | |
Weighted average common shares (millions): (12) | | | | | | | | | 1,153 | | | 1,153 | |
____________________________
(1)Per share measures may not recalculate due to rounding.
(2)(Gain) lossLoss on asset and investment sales, net,assets held for sale, included in Other income (loss), netLoss on assets held for sale, primarily represents the net gain recognized onloss recorded for the exchange of the previously held Maverix investment for Triple Flagsix non-core assets and the subsequentdevelopment project that met the requirements to be presented as held for sale of the Triple Flag investment.in 2024. Refer to Note 115 of the Condensed Consolidated Financial Statements for further information.
(3)Newcrest transaction-related costs, included in Other expense, net, primarily represents costs incurred related to the Proposed Newcrest Transaction. Refer to Note 1 of the Condensed Consolidated Financial Statements for further information.
(4)Restructuring and severance, included in Other expense, net, primarily represents severance and related costs associated with significant organizational or operating model changes implemented by the Company.
(5)Impairment charges, included in Other expense, net, represents non-cash write-downs of various assets that are no longer in use and materials and supplies inventories.
(6)Change in fair value of investments, included in Other income (loss), net, primarily represents unrealized gains and losses related to the Company's investment in current and non-current marketable equity securities.
(4)Newcrest transaction and integration costs, included in Other expense, net, represents costs incurred related to Newmont's acquisition of Newcrest completed in 2023 as well as subsequent integration costs. Refer to Note 3 of the Condensed Consolidated Financial Statements for further information.
(5)Settlement costs, included in Other expense, net, are primarily comprised of wind down and demobilization costs related to the French Guiana project.
(6)Impairment charges, included in Other expense, net, represents non-cash write-downs of various assets that are no longer in use and materials and supplies inventories.
(7)(Gain) loss on asset and investment sales, net, included in Other income (loss), net, primarily represents the gain recognized on the purchase and sale of foreign currency bonds. Refer to Note 9 of the Condensed Consolidated Financial Statements for further information.
(8)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.
(9)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 57 of the Condensed Consolidated Financial Statement for further information.
(8)Other represents income received on the favorable settlement of certain matters that were outstanding at the time of sale of the related investment in 2022. Amounts included in Other income (loss), net.
(9)(10)The tax effect of adjustments, included in Income and mining tax benefit (expense), represents the tax effect of adjustments in footnotes (2) through (8)(9), as described above, and are calculated using the applicable regional tax rate.
(10)(11)Valuation allowance and other tax adjustments, included in Income and mining tax benefit (expense), is recorded for items such as foreign tax credits, capital losses, disallowed foreign losses, and the effects of changes in foreign currency exchange rates on deferred tax assets and deferred tax liabilities. The adjustment for the three and six months ended June 30, 2023March 31, 2024 reflects the net increase or (decrease) to net operating losses, capital losses, tax credit carryovers, and other deferred tax assets subject to valuation allowance of $47 and $57,$(65), the effects of changes in foreign exchange rates on deferred tax assets and liabilities of $4 and $21,$35, net reductions to the reserve for uncertain tax positions of $3$(2), recording of a deferred tax liability for the outside basis difference at Akyem of $117 due to the status change to held-for-sale, and $14, other tax adjustments of $1 and $3.$7. For further information on reductions to the reserve for uncertain tax positions, refer to Note 810 of the Condensed Consolidated Financial Statements.
(11)(12)Adjusted net income (loss) per diluted share is calculated using diluted common shares in accordance with GAAP.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended
June 30, 2022 | | Six Months Ended
June 30, 2022 |
| | | per share data (1) | | | | per share data (1) |
| | | basic | | diluted | | | | basic | | diluted |
| Net income (loss) attributable to Newmont stockholders | $ | 387 | | | $ | 0.49 | | | $ | 0.49 | | | $ | 835 | | | $ | 1.05 | | | $ | 1.05 | |
| Net loss (income) attributable to Newmont stockholders from discontinued operations | (8) | | | (0.01) | | | (0.01) | | | (24) | | | (0.03) | | | (0.03) | |
| Net income (loss) attributable to Newmont stockholders from continuing operations | 379 | | | 0.48 | | | 0.48 | | | 811 | | | 1.02 | | | 1.02 | |
Pension settlements (2) | — | | | — | | | — | | | 130 | | | 0.16 | | | 0.16 | |
Change in fair value of investments (3) | 135 | | | 0.17 | | | 0.17 | | | 96 | | | 0.13 | | | 0.13 | |
(Gain) loss on asset and investment sales, net (4) | — | | | — | | | — | | | 35 | | | 0.04 | | | 0.04 | |
Settlement costs (5) | 5 | | | — | | | — | | | 18 | | | 0.03 | | | 0.03 | |
Reclamation and remediation charges (6) | — | | | — | | | — | | | 13 | | | 0.02 | | | 0.02 | |
| | | | | | | | | | | |
Impairment charges (7) | 2 | | | — | | | — | | | 2 | | | — | | | — | |
COVID-19 specific costs (8) | 1 | | | — | | | — | | | 1 | | | — | | | — | |
Restructuring and severance (9) | — | | | — | | | — | | | 1 | | | — | | | — | |
Other (10) | (18) | | | (0.03) | | | (0.03) | | | (18) | | | (0.03) | | | (0.03) | |
| | | | | | | | | | | |
Tax effect of adjustments (11) | (25) | | | (0.03) | | | (0.03) | | | (62) | | | (0.08) | | | (0.08) | |
Valuation allowance and other tax adjustments (12) | (117) | | | (0.13) | | | (0.13) | | | (119) | | | (0.14) | | | (0.15) | |
| Adjusted net income (loss) | $ | 362 | | | $ | 0.46 | | | $ | 0.46 | | | $ | 908 | | | $ | 1.15 | | | $ | 1.14 | |
| | | | | | | | | | | |
Weighted average common shares (millions): (13) | | | 794 | | | 795 | | | | | 793 | | | 795 | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | Three Months Ended
March 31, 2023 |
| | | | | | | per share data (1) |
| | | | | | | | | basic | | diluted |
| Net income (loss) attributable to Newmont stockholders | | | | | | | $ | 351 | | | $ | 0.44 | | | $ | 0.44 | |
| Net loss (income) attributable to Newmont stockholders from discontinued operations | | | | | | | (12) | | | (0.02) | | | (0.02) | |
| Net income (loss) attributable to Newmont stockholders from continuing operations | | | | | | | 339 | | | 0.42 | | | 0.42 | |
Change in fair value of investments (2) | | | | | | | (41) | | | (0.05) | | | (0.05) | |
(Gain) loss on asset and investment sales, net (3) | | | | | | | (36) | | | (0.05) | | | (0.05) | |
Impairment charges (4) | | | | | | | 4 | | | — | | | — | |
Restructuring and severance (5) | | | | | | | 2 | | | — | | | — | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
Other (6) | | | | | | | (4) | | | — | | | — | |
Tax effect of adjustments (7) | | | | | | | 16 | | | 0.02 | | | 0.02 | |
Valuation allowance and other tax adjustments (8) | | | | | | | 40 | | | 0.06 | | | 0.06 | |
| Adjusted net income (loss) | | | | | | | $ | 320 | | | $ | 0.40 | | | $ | 0.40 | |
| | | | | | | | | | | |
Weighted average common shares (millions): (9) | | | | | | | | | 794 | | | 795 | |
____________________________
(1)Per share measures may not recalculate due to rounding.
(2)Pension settlement, included in Other income (loss), net, represent pension settlement charges related to the annuitization of certain defined benefit plans. For further information, refer to Note 7 of the Condensed Consolidated Financial Statements.
(3)Change in fair value of investments, included in Other income (loss), net, primarily represents unrealized gains and losses related to the Company's investment in current and non-current marketable and other equity securities.
(4)(3)(Gain) loss on asset and investment sales, net, included in Other income (loss), net, primarily represents the lossnet gain recognized on the exchange of the previously held Maverix investment for Triple Flag and the subsequent sale of the La Zanja equity methodTriple Flag investment. For further information, refer to Note 19 of the Condensed Consolidated Financial Statements.
(5)Settlement costs, included in Other expense, net, primarily are comprised of legal settlement and a voluntary contribution made to support humanitarian efforts in Ukraine.
(6)Reclamation and remediation charges, included in Reclamation and remediation, represent revisions to reclamation and remediation plans at the Company's former operating properties and historic mining operations that have entered the closure phase and have no substantive future economic value. Refer to Note 5 of the Condensed Consolidated Financial Statement for further information.
(7)(4)Impairment charges, included in Other expense, net, represents non-cash write-downs of various assets that are no longer in use and materials and suppliedsupplies inventories.
(8)COVID-19 specific costs, included in Other expense, net, primarily include amounts distributed from Newmont Global Community Support Fund to help host communities, governments and employees combat the COVID-19 pandemic.
(9)(5)Restructuring and severance, included in Other expense, net, primarily represents severance and related costs associated with significant organizational or operating model changes implemented by the Company.
(10)(6)Primarily comprised of a reimbursement of certain historical Goldcorp operational expenses related to a legacy project that reached commercial production in the second quarter of 2022,Other, included in Other income (loss), net,. primarily represents income received on the favorable settlement of certain matters that were outstanding at the time of sale of the related investment in 2022.
(11)(7)The tax effect of adjustments, included in IncomeIncome and mining tax benefit (expense), represents the tax effect of adjustments in footnotes (2) through (10)(6), as described above, and are calculated using the applicable regional tax rate.
(12)(8)Valuation allowance and other tax adjustments, included in Income and mining tax benefit (expense), is recorded for items such as foreign tax credits, capital losses, disallowed foreign losses, and the effects of changes in foreign currency exchange rates on deferred tax assets and deferred tax liabilities. The adjustment for the three and six months ended June 30, 2022March 31, 2023 reflects the net increase or (decrease) to net operating losses, capital losses, tax credit carryovers, and other deferred tax assets subject to valuation allowance of $37 and $49,$10, the effects of changes in foreign exchange rates on deferred tax assets and liabilities of $(23) and $(26),$17, net reductions to the reserve for uncertain tax positions of $(5) and $(17),$11, other tax adjustments of $(1) and $—, and a tax settlement in Mexico of $(125) and $(125).$2. For further information on reductions to the reserve for uncertain tax positions, refer to Note 810 of the Condensed Consolidated Financial Statements.
(13)(9)Adjusted net income (loss) per diluted share is calculated using diluted common shares in accordance with GAAP.
Free Cash Flow
The following table sets forth a reconciliation of Free Cash Flow to Net cash provided by (used in) operating activities, which the Company believes to be the GAAP financial measure most directly comparable to Free Cash Flow, as well as information regarding Net cash provided by (used in) investing activities and Net cash provided by (used in) financing activities.
| | | | | | | | | | | |
| Six Months Ended June 30, |
| 2023 | | 2022 |
| Net cash provided by (used in) operating activities | $ | 1,144 | | | $ | 1,737 | |
| Less: Net cash used in (provided by) operating activities of discontinued operations | (7) | | | (15) | |
| Net cash provided by (used in) operating activities of continuing operations | 1,137 | | | 1,722 | |
| Less: Additions to property, plant and mine development | (1,142) | | | (956) | |
| Free Cash Flow | $ | (5) | | | $ | 766 | |
| | | |
Net cash provided by (used in) investing activities (1) | $ | (500) | | | $ | (1,034) | |
| Net cash provided by (used in) financing activities | $ | (684) | | | $ | (1,417) | |
| | | | | | | | | | | |
| Three Months Ended March 31, |
| 2024 | | 2023 |
Net cash provided by (used in) operating activities (1) | $ | 776 | | | $ | 481 | |
| | | |
| | | |
| Less: Additions to property, plant and mine development | (850) | | | (526) | |
| Free Cash Flow | $ | (74) | | | $ | (45) | |
| | | |
Net cash provided by (used in) investing activities (2) | $ | (798) | | | $ | (342) | |
| Net cash provided by (used in) financing activities | $ | (299) | | | $ | (350) | |
____________________________
(1)Includes payment of $291 for stamp duty tax, related to the Newcrest transaction, in the first quarter of 2024. Refer to Note 3 to the Condensed Consolidated Financial Statements for further information on the Newcrest transaction.
(2)Net cash provided by (used in) investing activities includes Additions to property, plant and mine development, which is included in the Company’s computation of Free Cash Flow.
Net Debt
Net Debt is calculated as Debt and Lease and other financing obligations less Cash and cash equivalents and time deposits included in Time deposits and other investments, as presented on the Condensed Consolidated Balance Sheets. Cash and cash equivalents and time deposits are subtracted from Debt and Lease and other financing obligations as these are highly liquid, low-risk investments and could be used to reduce the Company's debt obligations.
The following table sets forth a reconciliation of Net Debt, a non-GAAP financial measure, to Debt and Lease and other financing obligations, which the Company believes to be the GAAP financial measures most directly comparable to Net Debt.
| | At June 30,
2023 | | At December 31,
2022 |
| At March 31,
2024 | | | At March 31,
2024 | | At December 31,
2023 |
| Debt | Debt | $ | 5,574 | | | $ | 5,571 | |
| Lease and other financing obligations | Lease and other financing obligations | 537 | | | 561 | |
| Less: Cash and cash equivalents | Less: Cash and cash equivalents | (2,829) | | | (2,877) | |
Less: Time deposits (1) | (374) | | | (829) | |
Less: Cash and cash equivalents included in current assets held for sale (1) | |
| | | Net debt | Net debt | $ | 2,908 | | | $ | 2,426 | |
| | Net debt | |
| | Net debt | |
____________________________
(1)Time deposits are included inDuring the first quarter of 2024, certain non-core assets were determined to meet the criteria for assets held for sale. As a result, the related assets and liabilities, including $342 of Time depositsCash and other investmentscash equivalents, were reclassified to Current assets held for sale on the Condensed Consolidated Balance Sheets.and Current liabilities held for sale, respectively. Refer to Note 115 of the Condensed Consolidated Financial Statements for furtheradditional information.
Costs applicable to sales per ounce/gold equivalent ounce
Costs applicable to sales per ounce/gold equivalent ounce are calculated by dividing the costs applicable to sales of gold and other metals by gold ounces or gold equivalent ounces sold, respectively. These measures are calculated for the periods presented on a consolidated basis.
The following tables reconcile these non-GAAP measures to the most directly comparable GAAP measures.
Costs applicable to sales per gold ounce | | Three Months Ended
June 30, | | Six Months Ended
June 30, |
| 2023 | | 2022 | | 2023 | | 2022 |
| | | Three Months Ended
March 31, | |
| | | Three Months Ended
March 31, | |
| | | Three Months Ended
March 31, | |
| | | | | 2024 | | | | | | | 2024 | | 2023 |
Costs applicable to sales (1)(2) | Costs applicable to sales (1)(2) | $ | 1,277 | | | $ | 1,381 | | | $ | 2,516 | | | $ | 2,565 | |
| Gold sold (thousand ounces) | Gold sold (thousand ounces) | 1,211 | | | 1,482 | | | 2,419 | | | 2,811 | |
Costs applicable to sales per ounce (3) | Costs applicable to sales per ounce (3) | $ | 1,054 | | | $ | 932 | | | $ | 1,040 | | | $ | 912 | |
____________________________
(1)Includes by-product credits of $28$39 and $26$30 during the three months ended June 30, 2023March 31, 2024 and 2022, respectively, and $58 and $53 during the six months ended June 30, 2023 and 2022, respectively.2023.
(2)Excludes Depreciation and amortization and Reclamation and remediation.
(3)Per ounce measures may not recalculate due to rounding.
Costs applicable to sales per gold equivalent ounce | | Three Months Ended
June 30, | | Six Months Ended
June 30, |
| 2023 | | 2022 | | 2023 | | 2022 |
| | | Three Months Ended
March 31, | |
| | | Three Months Ended
March 31, | |
| | | Three Months Ended
March 31, | |
| | | | | 2024 | | | | | | | 2024 | | 2023 |
Costs applicable to sales (1)(2) | Costs applicable to sales (1)(2) | $ | 266 | | | $ | 327 | | | $ | 509 | | | $ | 578 | |
Gold equivalent ounces - other metals (thousand ounces) (3) | Gold equivalent ounces - other metals (thousand ounces) (3) | 251 | | | 333 | | | 516 | | | 683 | |
Costs applicable to sales per gold equivalent ounce (4) | Costs applicable to sales per gold equivalent ounce (4) | $ | 1,062 | | | $ | 983 | | | $ | 988 | | | $ | 846 | |
____________________________
(1)Includes by-product credits of $2$15 and $2 during the three months ended June 30, 2023March 31, 2024 and 2022, respectively, and $4 and $4 during the six months ended June 30, 2023 and 2022, respectively.2023.
(2)Excludes Depreciation and amortization and Reclamation and remediation.
(3)Gold equivalent ounces is calculated as pounds or ounces produced multiplied by the ratio of the other metals price to the gold price, using Gold ($1,400/oz.), Copper ($3.50/lb.), Silver ($20.00/oz.), Lead ($1.00/lb.) and Zinc ($1.20/lb.) pricing for 20232024 and Gold ($1,200/1,400/oz.), Copper ($3.25/3.50/lb.), Silver ($23.00/20.00/oz.), Lead ($0.95/1.00/lb.) and Zinc ($1.15/1.20/lb.) pricing for 2022.2023.
(4)Per ounce measures may not recalculate due to rounding.
All-In Sustaining Costs
All-in sustaining costs represent the sum of certain costs, recognized as GAAP financial measures, that management considers to be associated with production. All-in sustaining costs per ounce amounts are calculated by dividing all-in sustaining costs by gold ounces or gold equivalent ounces sold.
| Three Months Ended
June 30, 2023 | Costs Applicable to Sales (1)(2)(3)(4) | | Reclamation Costs (5) | | Advanced Projects, Research and Development and Exploration (6) | | General and Administrative | | Other Expense, Net (7) | | Treatment and Refining Costs | | Sustaining Capital and Lease Related Costs (8)(9) | | All-In Sustaining Costs | | Ounces (000) Sold | | All-In Sustaining Costs Per oz. (10) |
Three Months Ended
March 31, 2024 | | Three Months Ended
March 31, 2024 | Costs Applicable to Sales (1)(2)(3) | | Reclamation Costs (4) | | Advanced Projects, Research and Development and Exploration (5) | | General and Administrative | | Other Expense, Net (6) | | Treatment and Refining Costs | | Sustaining Capital and Lease Related Costs (7)(8) | | All-In Sustaining Costs | | Ounces (000) Sold | | All-In Sustaining Costs per Ounce (9) |
| Gold | Gold | | | | | | | | | | | | | | | | | | | |
| CC&V | $ | 49 | | | $ | 3 | | | $ | 2 | | | $ | — | | | $ | 1 | | | $ | — | | | $ | 12 | | | $ | 67 | | | 41 | | | $ | 1,631 | |
| Musselwhite | 55 | | | 2 | | | 4 | | | — | | | — | | | — | | | 31 | | | 92 | | | 41 | | | 2,254 | |
| Porcupine | 77 | | | 7 | | | 3 | | | — | | | — | | | — | | | 13 | | | 100 | | | 63 | | | 1,587 | |
| Éléonore | 74 | | | 3 | | | 2 | | | — | | | — | | | — | | | 33 | | | 112 | | | 51 | | | 2,213 | |
Brucejack (10) | |
Brucejack (10) | |
Brucejack (10) | |
Red Chris (10) | |
| Peñasquito | Peñasquito | 40 | | | 1 | | | 1 | | | — | | | — | | | 3 | | | 7 | | | 52 | | | 48 | | | 1,078 | |
| Merian | Merian | 80 | | | 1 | | | 3 | | | — | | | — | | | — | | | 22 | | | 106 | | | 53 | | | 2,010 | |
| Cerro Negro | Cerro Negro | 83 | | | 2 | | | 1 | | | — | | | 1 | | | — | | | 10 | | | 97 | | | 50 | | | 1,924 | |
| Yanacocha | Yanacocha | 79 | | | 4 | | | 3 | | | — | | | 3 | | | — | | | 4 | | | 93 | | | 66 | | | 1,386 | |
| Boddington | Boddington | 159 | | | 5 | | | 1 | | | — | | | — | | | 5 | | | 27 | | | 197 | | | 204 | | | 966 | |
| Tanami | Tanami | 102 | | | — | | | 1 | | | — | | | — | | | — | | | 41 | | | 144 | | | 124 | | | 1,162 | |
Cadia (10) | |
Lihir (10) | |
| Ahafo | Ahafo | 121 | | | 5 | | | 1 | | | — | | | — | | | — | | | 37 | | | 164 | | | 133 | | | 1,237 | |
| Akyem | 54 | | | 6 | | | 1 | | | — | | | — | | | — | | | 11 | | | 72 | | | 49 | | | 1,461 | |
| NGM | NGM | 304 | | | 3 | | | 4 | | | 3 | | | — | | | 1 | | | 83 | | | 398 | | | 288 | | | 1,388 | |
Corporate and Other (11) | Corporate and Other (11) | — | | | — | | | 13 | | | 58 | | | 1 | | | — | | | 16 | | | 88 | | | — | | | — | |
Held for sale (14) | |
| CC&V | |
| CC&V | |
| CC&V | |
| Musselwhite | |
| Porcupine | |
Éléonore | |
Telfer (10) | |
| Akyem | |
| Total Gold | Total Gold | $ | 1,277 | | | $ | 42 | | | $ | 40 | | | $ | 61 | | | $ | 6 | | | $ | 9 | | | $ | 347 | | | $ | 1,782 | | | 1,211 | | | $ | 1,472 | |
| Gold equivalent ounces - other metals (12) | |
Gold equivalent ounces - other metals (12)(13) | |
Gold equivalent ounces - other metals (12)(13) | |
Gold equivalent ounces - other metals (12)(13) | |
Red Chris (10) | |
Red Chris (10) | |
Red Chris (10) | |
| Peñasquito | Peñasquito | $ | 218 | | | $ | 7 | | | $ | 1 | | | $ | 1 | | | $ | — | | | $ | 31 | | | $ | 40 | | | $ | 298 | | | 188 | | | $ | 1,581 | |
| Boddington | Boddington | 48 | | | 1 | | | — | | | — | | | — | | | 4 | | | 9 | | | 62 | | | 63 | | | 977 | |
Cadia (10) | |
Corporate and Other (11) | Corporate and Other (11) | — | | | — | | | 3 | | | 9 | | | — | | | — | | | 3 | | | 15 | | | — | | | — | |
Held for sale (14) | |
Telfer (10) | |
Telfer (10) | |
Telfer (10) | |
| Total Gold Equivalent Ounces | Total Gold Equivalent Ounces | $ | 266 | | | $ | 8 | | | $ | 4 | | | $ | 10 | | | $ | — | | | $ | 35 | | | $ | 52 | | | $ | 375 | | | 251 | | | $ | 1,492 | |
| | Consolidated | Consolidated | $ | 1,543 | | | $ | 50 | | | $ | 44 | | | $ | 71 | | | $ | 6 | | | $ | 44 | | | $ | 399 | | | $ | 2,157 | | |
| Consolidated | |
| Consolidated | |
____________________________
(1)Excludes Depreciation and amortization and Reclamation and remediation.
(2)Includes by-product credits of $30 and excludes co-product revenues of $303.$54.
(3)Includes stockpile, leach pad, and product inventory adjustments of $2 at Porcupine, $5Brucejack, $1 at Éléonore, $17Peñasquito, $15 at Telfer, and $6 at NGM.
(4)Reclamation costs include operating accretion and amortization of asset retirement costs of $33 and $30, 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 $54 and $11, respectively.
(5)Advanced projects, research and development and exploration excludes development expenditures of $1 at Peñasquito, $2 at Merian, $4 at Cerro Negro, $1 at Boddington, $8 at Tanami, $5 at Ahafo, $4 at Yanacocha,Akyem, $3 at NGM, and $13 at Corporate and Other, totaling $41 related to developing new operations or major projects at existing operations where these projects will materially benefit the operation.
(6)Other expense, net is adjusted for Newcrest transaction and integration costs of $29, settlement costs of $21, impairment charges of $12, and restructuring and severance of $6.
(7)Excludes capitalized interest related to sustaining capital expenditures. See Liquidity and Capital Resources within Part I, Item 2, Management's Discussion and Analysis for capital expenditures by segment.
(8)Includes finance lease payments and other costs for sustaining projects of $15.
(9)Per ounce measures may not recalculate due to rounding.
(10)Sites acquired through the Newcrest transaction. Refer to Note 3 of the Condensed Consolidated Financial Statements for further information.
(11)Corporate and Other includes the Company's business activities relating to its corporate and regional offices and all equity method investments. Refer to Note 4 of the Condensed Consolidated Financial Statements for further information.
(12)Gold equivalent ounces is calculated as pounds or ounces produced multiplied by the ratio of the other metals price to the gold price, using Gold ($1,400/oz.), Copper ($3.50/lb.), Silver ($20.00/oz.), Lead ($1.00/lb.) and Zinc ($1.20/lb.) pricing for 2024.
(13)For the three months ended March 31, 2024, Red Chris sold 6 thousand tonnes of copper, Peñasquito sold 10 million ounces of silver, 29 thousand tonnes of lead and 61 thousand tonnes of zinc, Boddington sold 9 thousand tonnes of copper, Cadia sold 20 thousand tonnes of copper, and Telfer sold 1 thousand tonnes of copper.
(14)Sites are classified as held for sale as of March 31, 2024. Refer to Note 5 of the Condensed Consolidated Financial Statements for further discussion of our assets and liabilities held for sale.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Three Months Ended
March 31, 2023 | Costs Applicable to Sales (1)(2)(3)(4) | | Reclamation Costs (5) | | Advanced Projects, Research and Development and Exploration (6) | | General and Administrative | | Other Expense, Net (7) | | Treatment and Refining Costs | | Sustaining Capital and Lease Related Costs (8)(9) | | All-In Sustaining Costs | | Ounces (000) Sold | | All-In Sustaining Costs per Ounce (10) |
| Gold | | | | | | | | | | | | | | | | | | | |
| CC&V | $ | 51 | | | $ | 2 | | | $ | 3 | | | $ | — | | | $ | — | | | $ | — | | | $ | 10 | | | $ | 66 | | | 48 | | | $ | 1,375 | |
| Musselwhite | 58 | | | 1 | | | 1 | | | — | | | — | | | — | | | 14 | | | 74 | | | 44 | | | $ | 1,681 | |
| Porcupine | 70 | | | 5 | | | 4 | | | — | | | — | | | — | | | 13 | | | 92 | | | 65 | | | $ | 1,412 | |
| Éléonore | 75 | | | 2 | | | 1 | | | — | | | — | | | — | | | 19 | | | 97 | | | 68 | | | $ | 1,420 | |
| Peñasquito | 67 | | | 3 | | | — | | | — | | | — | | | 4 | | | 12 | | | 86 | | | 56 | | | $ | 1,539 | |
| Merian | 85 | | | 2 | | | 2 | | | — | | | — | | | — | | | 14 | | | 103 | | | 83 | | | $ | 1,235 | |
| Cerro Negro | 70 | | | 1 | | | 1 | | | — | | | — | | | — | | | 12 | | | 84 | | | 61 | | | $ | 1,379 | |
| Yanacocha | 56 | | | 7 | | | 3 | | | — | | | 1 | | | — | | | 3 | | | 70 | | | 53 | | | $ | 1,332 | |
| Boddington | 167 | | | 4 | | | 1 | | | — | | | — | | | 5 | | | 28 | | | 205 | | | 198 | | | $ | 1,035 | |
| Tanami | 61 | | | 1 | | | — | | | — | | | — | | | — | | | 17 | | | 79 | | | 65 | | | $ | 1,219 | |
| Ahafo | 130 | | | 4 | | | — | | | — | | | 1 | | | — | | | 44 | | | 179 | | | 131 | | | $ | 1,366 | |
| Akyem | 63 | | | 10 | | | — | | | — | | | — | | | — | | | 10 | | | 83 | | | 78 | | | $ | 1,067 | |
| NGM | 286 | | | 4 | | | 4 | | | 2 | | | — | | | 2 | | | 65 | | | 363 | | | 258 | | | $ | 1,405 | |
Corporate and Other (11) | — | | | — | | | 19 | | | 61 | | | — | | | — | | | 2 | | | 82 | | | — | | | $ | — | |
| Total Gold | 1,239 | | | 46 | | | 39 | | | 63 | | | 2 | | | 11 | | | 263 | | | 1,663 | | | 1,208 | | | $ | 1,376 | |
| | | | | | | | | | | | | | | | | | | |
Gold equivalent ounces - other metals (12)(13) | | | | | | | | | | | | | | | | | | | |
| Peñasquito | 190 | | | 7 | | | 1 | | | — | | | — | | | 34 | | | 36 | | | 268 | | | 199 | | | $ | 1,351 | |
| Boddington | 53 | | | 1 | | | 1 | | | — | | | — | | | 4 | | | 8 | | | 67 | | | 66 | | | $ | 1,019 | |
Corporate and Other (11) | — | | | — | | | 3 | | | 11 | | | — | | | — | | | — | | | 14 | | | — | | | $ | — | |
| Total Gold Equivalent Ounces | 243 | | | 8 | | | 5 | | | 11 | | | — | | | 38 | | | 44 | | | 349 | | | 265 | | | $ | 1,322 | |
| | | | | | | | | | | | | | | | | | | |
| Consolidated | $ | 1,482 | | | $ | 54 | | | $ | 44 | | | $ | 74 | | | $ | 2 | | | $ | 49 | | | $ | 307 | | | $ | 2,012 | | | | | |
____________________________
(1)Excludes Depreciation and amortization and Reclamation and remediation.
(2)Includes by-product credits of $32.
(3)Includes stockpile and leach pad inventory adjustments of $1 at Akyem, and $1 at NGM.
(4)Beginning January 1, 2023, COVID-19 specific costs incurred in the ordinary course of business are recognized in Costs applicable to sales.
(5)Reclamation costs include operating accretion and amortization of asset retirement costs of $25$24 and $25,$30, respectively, and exclude accretion and reclamation and remediation adjustments at former operating properties that have entered the closure phase and have no substantive future economic value of $36$38 and $5,$4, respectively.
(6)Advanced projects, research and development and exploration excludes development expenditures of $1 at CC&V, $3 at Porcupine $1$2 at Peñasquito, $2$1 at Merian, $1 at Cerro Negro, $4 at Tanami, $6 at Ahafo, $3 at Yanacocha, $8 at Tanami, $9 at Ahafo, $4 at Akyem, $6$3 at NGM and $29$19 at Corporate and Other, totaling $66$39 related to developing new operations or major projects at existing operations where these projects will materially benefit the operation.
(7)Other expense, net is adjusted for impairment charges of $4 and restructuring and severance of $10, and Newcrest transaction-related costs of $21.$2.
(8)Excludes capitalized interest related to sustaining capital expenditures. See Liquidity and Capital Resources within Part I, Item 2, Management's DiscussionDecision and Analysis for sustaining capital expenditures by segment.
(9)Includes finance lease payments and other costs for sustaining projects of $16.$22.
(10)Per ounce measures may not recalculate due to rounding.
(11)Corporate and Other includes the Company's business activities relating to its corporate and regional offices and all equity method investments. Refer to Note 34 of the Condensed Consolidated Financial Statements for further information.
(12)Gold equivalent ounces is calculated as pounds or ounces produced multiplied by the ratio of the other metals price to the gold price, using Gold ($1,400/oz.), Copper ($3.50/lb.), Silver ($20.00/oz.), Lead ($1.00/lb.) and Zinc ($1.20/lb.) pricing for 2023.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Three Months Ended
June 30, 2022 | Costs Applicable to Sales (1)(2)(3) | | Reclamation Costs (4) | | Advanced Projects, Research and Development and Exploration (5) | | General and Administrative | | Other Expense, Net (6) | | Treatment and Refining Costs | | Sustaining Capital and Lease Related Costs (7)(8)(9) | | All-In Sustaining Costs | | Ounces (000) Sold | | All-In Sustaining Costs Per oz. (10) |
| Gold | | | | | | | | | | | | | | | | | | | |
| CC&V | $ | 49 | | | $ | 4 | | | $ | 2 | | | $ | — | | | $ | 2 | | | $ | — | | | $ | 14 | | | $ | 71 | | | 46 | | | $ | 1,553 | |
| Musselwhite | 53 | | | 1 | | | 2 | | | — | | | — | | | — | | | 11 | | | 67 | | | 40 | | | 1,693 | |
| Porcupine | 71 | | | 1 | | | 4 | | | — | | | — | | | — | | | 14 | | | 90 | | | 68 | | | 1,328 | |
| Éléonore | 71 | | | 2 | | | 1 | | | — | | | 2 | | | — | | | 14 | | | 90 | | | 47 | | | 1,922 | |
Peñasquito (11) | 127 | | | 3 | | | 1 | | | — | | | — | | | 6 | | | 18 | | | 155 | | | 130 | | | 1,187 | |
| Merian | 94 | | | 1 | | | 4 | | | — | | | 1 | | | — | | | 13 | | | 113 | | | 96 | | | 1,173 | |
| Cerro Negro | 71 | | | 2 | | | 1 | | | — | | | 1 | | | — | | | 11 | | | 86 | | | 78 | | | 1,106 | |
| Yanacocha | 73 | | | 6 | | | 2 | | | — | | | 4 | | | — | | | 6 | | | 91 | | | 69 | | | 1,321 | |
| Boddington | 181 | | | 4 | | | 1 | | | — | | | 1 | | | 5 | | | 14 | | | 206 | | | 241 | | | 854 | |
| Tanami | 84 | | | 1 | | | 1 | | | — | | | 2 | | | — | | | 28 | | | 116 | | | 132 | | | 873 | |
| Ahafo | 129 | | | 2 | | | — | | | — | | | — | | | — | | | 22 | | | 153 | | | 135 | | | 1,130 | |
| Akyem | 76 | | | 8 | | | — | | | — | | | — | | | — | | | 7 | | | 91 | | | 109 | | | 837 | |
| NGM | 302 | | | 3 | | | 4 | | | 2 | | | — | | | — | | | 57 | | | 368 | | | 291 | | | 1,263 | |
Corporate and Other (12) | — | | | — | | | 18 | | | 59 | | | — | | | — | | | 4 | | | 81 | | | — | | | — | |
| Total Gold | $ | 1,381 | | | $ | 38 | | | $ | 41 | | | $ | 61 | | | $ | 13 | | | $ | 11 | | | $ | 233 | | | $ | 1,778 | | | 1,482 | | | $ | 1,199 | |
| | | | | | | | | | | | | | | | | | | |
Gold equivalent ounces - other metals (13) | | | | | | | | | | | | | | | | | | | |
Peñasquito (11) | $ | 278 | | | $ | 5 | | | $ | 4 | | | $ | — | | | $ | 1 | | | $ | 32 | | | $ | 35 | | | $ | 355 | | | 264 | | | $ | 1,347 | |
| Boddington | 49 | | | — | | | 1 | | | — | | | — | | | 3 | | | 3 | | | 56 | | | 69 | | | 818 | |
Corporate and Other (12) | — | | | — | | | 3 | | | 12 | | | — | | | — | | | 1 | | | 16 | | | — | | | — | |
| Total Gold Equivalent Ounces | $ | 327 | | | $ | 5 | | | $ | 8 | | | $ | 12 | | | $ | 1 | | | $ | 35 | | | $ | 39 | | | $ | 427 | | | 333 | | | $ | 1,286 | |
| | | | | | | | | | | | | | | | | | | |
| Consolidated | $ | 1,708 | | | $ | 43 | | | $ | 49 | | | $ | 73 | | | $ | 14 | | | $ | 46 | | | $ | 272 | | | $ | 2,205 | | | | | |
____________________________
(1)Excludes Depreciation and amortization and Reclamation and remediation.
(2)Includes by-product credits of $28 and excludes co-product revenues of $336.
(3)Includes stockpile and leach pad inventory adjustments of $2 at CC&V and $27 at NGM.
(4)Reclamation costs include operating accretion and amortization of asset retirement costs of $16 and $27, 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 $29 and $4, respectively.
(5)Advanced projects, research and development and exploration excludes development expenditures of $1 at CC&V, $1 at Peñasquito, $2 at Merian, $3 at Cerro Negro, $3 at Yanacocha, $6 at Tanami, $7 at Ahafo, $4 at Akyem, $5 at NGM and $26 at Corporate and Other, totaling $58 related to developing new operations or major projects at existing operations where these projects will materially benefit the operation.
(6)Other expense, net is adjusted for settlement costs of $5, impairment of long-lived and other assets of $2 and distributions from the Newmont Global Community Support Fund of $1.
(7)Includes sustaining capital expenditures of $256. See Liquidity and Capital Resources within Part I, Item 2, Management's Discussion and Analysis for sustaining capital expenditures by segment.
(8)Excludes development capital expenditures, capitalized interest and the change in accrued capital totaling $263. See Liquidity and Capital Resources within Part I, Item 2, Management's Discussion and Analysis for discussion of major development projects.
(9)Includes finance lease payments for sustaining projects of $16.
(10)Per ounce measures may not recalculate due to rounding.
(11)Costs applicable to sales includes $70 related to the Peñasquito Profit-Sharing Agreement. For further information, refer to Note 3 of the Condensed Consolidated Financial Statements.
(12)Corporate and Other includes the Company's business activities relating to its corporate and regional offices and all equity method investments. Refer to Note 3 of the Condensed Consolidated Financial Statements for further information.
(13)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 ($3.25/lb.), Silver ($23.00/oz.), Lead ($0.95/lb.) and Zinc ($1.15/lb.) pricing for 2022.
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Six Months Ended
June 30, 2023 | Costs Applicable to Sales (1)(2)(3)(4) | | Reclamation Costs (5) | | Advanced Projects, Research and Development and Exploration (6) | | General and Administrative | | Other Expense, Net (7) | | Treatment and Refining Costs | | Sustaining Capital and Lease Related Costs (8)(9) | | All-In Sustaining Costs | | Ounces (000) Sold | | All-In Sustaining Costs Per oz. (10) |
| Gold | | | | | | | | | | | | | | | | | | | |
| CC&V | $ | 100 | | | $ | 5 | | | $ | 5 | | | $ | — | | | $ | 1 | | | $ | — | | | $ | 22 | | | $ | 133 | | | 89 | | | $ | 1,494 | |
| Musselwhite | 113 | | | 3 | | | 5 | | | — | | | — | | | — | | | 45 | | | 166 | | | 85 | | | 1,955 | |
| Porcupine | 147 | | | 12 | | | 7 | | | — | | | — | | | — | | | 26 | | | 192 | | | 128 | | | 1,498 | |
| Éléonore | 149 | | | 5 | | | 3 | | | — | | | — | | | — | | | 52 | | | 209 | | | 119 | | | 1,756 | |
| Peñasquito | 107 | | | 4 | | | 1 | | | — | | | — | | | 7 | | | 19 | | | 138 | | | 104 | | | 1,325 | |
| Merian | 165 | | | 3 | | | 5 | | | — | | | — | | | — | | | 36 | | | 209 | | | 136 | | | 1,537 | |
| Cerro Negro | 153 | | | 3 | | | 2 | | | — | | | 1 | | | — | | | 22 | | | 181 | | | 111 | | | 1,625 | |
| Yanacocha | 135 | | | 11 | | | 6 | | | — | | | 4 | | | — | | | 7 | | | 163 | | | 119 | | | 1,362 | |
| Boddington | 326 | | | 9 | | | 2 | | | — | | | — | | | 10 | | | 55 | | | 402 | | | 402 | | | 1,000 | |
| Tanami | 163 | | | 1 | | | 1 | | | — | | | — | | | — | | | 58 | | | 223 | | | 189 | | | 1,182 | |
| Ahafo | 251 | | | 9 | | | 1 | | | — | | | 1 | | | — | | | 81 | | | 343 | | | 264 | | | 1,301 | |
| Akyem | 117 | | | 16 | | | 1 | | | — | | | — | | | — | | | 21 | | | 155 | | | 127 | | | 1,220 | |
| NGM | 590 | | | 7 | | | 8 | | | 5 | | | — | | | 3 | | | 148 | | | 761 | | | 546 | | | 1,396 | |
Corporate and Other (11) | — | | | — | | | 32 | | | 119 | | | 1 | | | — | | | 18 | | | 170 | | | — | | | — | |
| Total Gold | $ | 2,516 | | | $ | 88 | | | $ | 79 | | | $ | 124 | | | $ | 8 | | | $ | 20 | | | $ | 610 | | | $ | 3,445 | | | 2,419 | | | $ | 1,424 | |
| | | | | | | | | | | | | | | | | | | |
Gold equivalent ounces - other metals (12) | | | | | | | | | | | | | | | | | | | |
| Peñasquito | $ | 408 | | | $ | 14 | | | $ | 2 | | | $ | 1 | | | $ | — | | | $ | 65 | | | $ | 76 | | | $ | 566 | | | 387 | | | $ | 1,463 | |
| Boddington | 101 | | | 2 | | | 1 | | | — | | | — | | | 8 | | | 17 | | | 129 | | | 129 | | | 998 | |
Corporate and Other (11) | — | | | — | | | 6 | | | 20 | | | — | | | — | | | 3 | | | 29 | | | — | | | — | |
| Total Gold Equivalent Ounces | $ | 509 | | | $ | 16 | | | $ | 9 | | | $ | 21 | | | $ | — | | | $ | 73 | | | $ | 96 | | | $ | 724 | | | 516 | | | $ | 1,405 | |
| | | | | | | | | | | | | | | | | | | |
| Consolidated | $ | 3,025 | | | $ | 104 | | | $ | 88 | | | $ | 145 | | | $ | 8 | | | $ | 93 | | | $ | 706 | | | $ | 4,169 | | | | | |
____________________________
(1)Excludes Depreciation and amortization and Reclamation and remediation.
(2)Includes by-product credits of $62 and excludes co-product revenues of $679.
(3)Includes stockpile, leach pad, and product inventory adjustments of $2 at Porcupine, $5 at Éléonore, $17 at Peñasquito, $2 at Cerro Negro, $4 at Yanacocha, $1 at Akyem, and $2 at NGM.
(4)Beginning January 1, 2023, COVID-19 specific costs incurred in the ordinary course of business are recognized in Costs applicable to sales.
(5)Reclamation costs include operating accretion and amortization of asset retirement costs of $49 and $55, 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 $74 and $9, respectively.
(6)Advanced projects, research and development and exploration excludes development expenditures of $1 at CC&V, $3 at Porcupine, $3 at Peñasquito, $3 at Merian, $1 at Cerro Negro, $3 at Yanacocha, $12 at Tanami, $15 at Ahafo, $7 at Akyem, $9 at NGM, and $48 at Corporate and Other, totaling $105 related to developing new operations or major projects at existing operations where these projects will materially benefit the operation.
(7)Other expense, net is adjusted for impairment charges of $8, restructuring and severance of $12, and Newcrest transaction-related costs of $21.
(8)Excludes capitalized interest related to sustaining capital expenditures. See Liquidity and Capital Resources within Part I, Item 2, Management's Discussion and Analysis for capital expenditures by segment.
(9)Includes finance lease payments and other costs for sustaining projects of $38.
(10)Per ounce measures may not recalculate due to rounding.
(11)Corporate and Other includes the Company's business activities relating to its corporate and regional offices and all equity method investments. Refer to Note 3 of the Condensed Consolidated Financial Statements for further information.
(12)Gold equivalent ounces is calculated as pounds or ounces produced multiplied by the ratio of the other metals price to the gold price, using Gold ($1,400/oz.), Copper ($3.50/lb.), Silver ($20.00/oz.), Lead ($1.00/lb.) and Zinc ($1.20/lb.) pricing for 2023.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six Months Ended
June 30, 2022 | Costs Applicable to Sales (1)(2)(3) | | Reclamation Costs (4) | | Advanced Projects, Research and Development and Exploration (5) | | General and Administrative | | Other Expense, Net (6) | | Treatment and Refining Costs | | Sustaining Capital and Lease Related Costs (7)(8)(9) | | All-In Sustaining Costs | | Ounces (000) Sold | | All-In Sustaining Costs Per oz. (10) |
| Gold | | | | | | | | | | | | | | | | | | | |
| CC&V | $ | 101 | | | $ | 7 | | | $ | 3 | | | $ | — | | | $ | 3 | | | $ | — | | | $ | 18 | | | $ | 132 | | | 82 | | | $ | 1,608 | |
| Musselwhite | 96 | | | 3 | | | 3 | | | — | | | 1 | | | — | | | 17 | | | 120 | | | 72 | | | 1,670 | |
| Porcupine | 137 | | | 2 | | | 6 | | | — | | | — | | | — | | | 23 | | | 168 | | | 128 | | | 1,313 | |
| Éléonore | 133 | | | 4 | | | 1 | | | — | | | 3 | | | — | | | 26 | | | 167 | | | 97 | | | 1,734 | |
Peñasquito (11) | 214 | | | 5 | | | 2 | | | — | | | 1 | | | 13 | | | 32 | | | 267 | | | 264 | | | 1,013 | |
| Merian | 181 | | | 3 | | | 5 | | | — | | | 2 | | | — | | | 24 | | | 215 | | | 199 | | | 1,079 | |
| Cerro Negro | 134 | | | 3 | | | 1 | | | — | | | 7 | | | — | | | 22 | | | 167 | | | 142 | | | 1,172 | |
| Yanacocha | 140 | | | 10 | | | 2 | | | — | | | 7 | | | — | | | 11 | | | 170 | | | 137 | | | 1,243 | |
| Boddington | 343 | | | 9 | | | 2 | | | — | | | 1 | | | 8 | | | 27 | | | 390 | | | 439 | | | 888 | |
| Tanami | 149 | | | 1 | | | 4 | | | — | | | 5 | | | — | | | 57 | | | 216 | | | 231 | | | 933 | |
| Ahafo | 235 | | | 4 | | | 1 | | | — | | | 1 | | | — | | | 44 | | | 285 | | | 243 | | | 1,171 | |
| Akyem | 143 | | | 15 | | | 1 | | | — | | | — | | | — | | | 17 | | | 176 | | | 199 | | | 884 | |
| NGM | 559 | | | 4 | | | 7 | | | 5 | | | — | | | 1 | | | 103 | | | 679 | | | 578 | | | 1,176 | |
Corporate and Other (12) | — | | | — | | | 41 | | | 110 | | | — | | | — | | | 11 | | | 162 | | | — | | | — | |
| Total Gold | $ | 2,565 | | | $ | 70 | | | $ | 79 | | | $ | 115 | | | $ | 31 | | | $ | 22 | | | $ | 432 | | | $ | 3,314 | | | 2,811 | | | $ | 1,179 | |
| | | | | | | | | | | | | | | | | | | |
Gold equivalent ounces - other metals (13) | | | | | | | | | | | | | | | | | | | |
Peñasquito (11) | $ | 483 | | | $ | 10 | | | $ | 6 | | | $ | — | | | $ | 4 | | | $ | 65 | | | $ | 68 | | | $ | 636 | | | 559 | | | $ | 1,138 | |
| Boddington | 95 | | | 1 | | | 1 | | | — | | | — | | | 5 | | | 7 | | | 109 | | | 124 | | | 881 | |
Corporate and Other (12) | — | | | — | | | 8 | | | 22 | | | — | | | — | | | 2 | | | 32 | | | — | | | — | |
| Total Gold Equivalent Ounces | $ | 578 | | | $ | 11 | | | $ | 15 | | | $ | 22 | | | $ | 4 | | | $ | 70 | | | $ | 77 | | | $ | 777 | | | 683 | | | $ | 1,138 | |
| | | | | | | | | | | | | | | | | | | |
| Consolidated | $ | 3,143 | | | $ | 81 | | | $ | 94 | | | $ | 137 | | | $ | 35 | | | $ | 92 | | | $ | 509 | | | $ | 4,091 | | | | | |
____________________________
(1)Excludes Depreciation and amortization and Reclamation and remediation.
(2)Includes by-product credits of $57 and excludes co-product revenues of $845.
(3)Includes stockpile and leach pad inventory adjustments of $7 at CC&V, $3 at Merian and $28 at NGM.
(4)Reclamation costs include operating accretion and amortization of asset retirement costs of $32 and $49, 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 $57 and $21, respectively.
(5)Advanced projects, research and development and exploration excludes development expenditures of $1 at CC&V, $1 at Porcupine, $3 at Peñasquito, $4 at Merian, $6 at Cerro Negro, $4 at Yanacocha, $9 at Tanami, $10 at Ahafo, $7 at Akyem, $8 at NGM and $42 at Corporate and Other, totaling $95 related to developing new operations or major projects at existing operations where these projects will materially benefit the operation.
(6)Other expense, net is adjusted for settlement costs of $18, impairment of long-lived and other assets of $2, restructuring and severance costs of $1 and distributions from the Newmont Global Community Support Fund of $1.
(7)Includes sustaining capital expenditures of $476. See Liquidity and Capital Resources within Part I, Item 2, Management's Discussion and Analysis for sustaining capital expenditures by segment.
(8)Excludes development capital expenditures, capitalized interest and the change in accrued capital totaling $480. See Liquidity and Capital Resources within Part I, Item 2, Management's Discussion and Analysis for discussion of major development projects.
(9)Includes finance lease payments for sustaining projects of $33.
(10)Per ounce measures may not recalculate due to rounding.
(11)Costs applicable to sales includes $70 related to the Peñasquito Profit-Sharing Agreement. For further information, refer to Note 3 of the Condensed Consolidated Financial Statements.
(12)Corporate and Other includes the Company's business activities relating to its corporate and regional offices and all equity method investments. Refer to Note 3 of the Condensed Consolidated Financial Statements for further information.
(13)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 ($3.25/lb.), Silver ($23.00/oz.), Lead ($0.95/lb.) and Zinc ($1.15/lb.) pricing for 2022.
Accounting Developments
For a discussion of Risks and Uncertainties and Recently Adopted and Recently Issued Accounting Pronouncements, refer to Note 2 of the Condensed Consolidated Financial Statements.
Refer to our Management’s Discussion and Analysis of Accounting Developments and Critical Accounting Estimates included in Part II of our Annual Report on Form 10-K for the year ended December 31, 20222023 filed with the SEC on February 23, 202329, 2024 for additional information on our critical accounting policies and estimates.
Safe Harbor Statement
Certain statements contained in this report (including information incorporated by reference herein) are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and are intended to be covered by the safe harbor provided for under these sections. Words such as “expect(s),” “feel(s), “feel(s)” “believe(s), “believe(s)” “will,” “may,” “anticipate(s), “will”” “estimate(s), “may”” “should,” “intend(s), “anticipate(s)” "target(s), “estimate(s)”" "plan(s), “should”, “intend(s)”" "potential," and similar expressions are intended to identify forward-looking statements. Our forward-looking statements may include, without limitation:
•expectations regarding the pending transaction to acquire the share capital of Newcrest timing and closing of the pending transaction, including receipt of required approvals and satisfaction of other customary closing conditions;
•estimates regarding future earnings and the sensitivity of earnings to gold, copper, silver, lead, zinc, and other metal prices;
•estimates of future mineral production and sales;
•estimates of future production costs, other expenses and taxes for specific operations and on a consolidated basis;basis, including estimates of future costs applicable to sales and all-in sustaining costs;
•estimates of future cash flows and the sensitivity of cash flows to gold, copper, silver, lead, zinc, and other metal prices;
•estimates of future capital expenditures, including development and sustaining capital, as well as construction production or closure activities and other cash needs, for specific operations and on a consolidated basis, and expectations as to the funding or timing thereof;
•estimates as to the projected development of certain ore deposits or projects, such as the Tanami Expansion 2, Ahafo North, Yanacocha Sulfides, Pamour, Cerro Negro District Expansion 1, Cadia Block Cave, Red Chris Block Cave and Wafi-Golpu, including without limitation expectations for the timing of such development,production, milling, costs applicable to sales, all-in sustaining costs, mine-life extension, the costs of such development and other capital costs, financing plans for these deposits and expected production commencement dates;dates, construction completion dates and other timelines;
•estimates of reserves and resources statements regarding future exploration results and reserve and resource replacement and the sensitivity of reserves to metal price changes;
•statements regarding the availability of, and terms and costs related to, future borrowing or financing and expectations regarding future share repurchase transactions, debt repayments or debt tender transactions;
•statements regarding future dividendscash flows and returns to shareholders;shareholders, including with respect to future dividends, the dividend framework and expected payout levels;
•estimates regarding future exploration expenditures and discoveries;
•statements regarding fluctuations in financial and currency markets;
•estimates regarding potential cost savings, productivity, operating performance and ownership and cost structures;
•expectations regarding statements regarding future or recently completed transactions, including, without limitation, statements related to future acquisitions and projected benefits, synergies and costs associated with acquisitions and related matters;matters, and expectations from the integration of Newcrest, including the combined company’s production capacity, asset quality and geographic spread;
•estimates of future cost reductions, synergies, including pre-tax synergies, savings and efficiencies, and future cash flow enhancements through portfolio optimization;
•expectations of future equity and enterprise value;
•expectations regarding the start-up time, design, mine life, production and costs applicable to sales and exploration potential of our projects;
•statements regarding future hedge and derivative positions or modifications thereto;
•statements regarding local, community, political, economic or governmental conditions and environments;
•statements and expectations regarding the impacts of COVID-19 COVIDand variants thereof and other health and safety conditions;
•statements regarding the impacts of changes in the legal and regulatory environment in which we operate, including, without limitation, relating to regional, national, domestic and foreign laws;
•statements regarding climate strategy and expectations regarding greenhouse gas emission targets and related operating costs and capital expenditures;
•statements regarding expected changes in the tax regimes in which we operate, including, without limitation, estimates of future tax rates and estimates of the impacts to income tax expense, valuation of deferred tax assets and liabilities, and other financial impacts;
•estimates of income taxes and expectations relating to tax contingencies or tax audits;
•estimates of future costs, accruals for reclamation costs and other liabilities for certain environmental matters, including without limitation, in connection with water treatment, such as the Yanacocha water treatment plants, and tailings management;
•statements relating to potential impairments, revisions or write-offs, including without limitation, the result of fluctuation in metal prices, unexpected production or capital costs, or unrealized reserve potential;
•estimates of pension and other post-retirement costs;
•statements regarding estimates of timing of adoption of recent accounting pronouncements and expectations regarding future impacts to the financial statements resulting from accounting pronouncements; and
•estimates of future cost reductions, synergies, savings and efficiencies in connection with full potential programs and initiatives; and
•expectations regarding future exploration and the development, growth and potential of operations, projects and investments.initiatives.
Where we express an expectation or belief as to future events or results, such expectation or belief is expressed in good faith and believed to have a reasonable basis. However, our forward-looking statements are subject to risks, uncertainties and other factors, which could cause actual results to differ materially from future results expressed, projected or implied by those forward-looking statements. Such risks and uncertainties include, but are not limited to:
•there being no significant change to current geotechnical, metallurgical, hydrological and other physical conditions;
•the price of gold, copper, silver, lead, zinc and other metal prices and commodities;
•the cost of operations;operations and prices for key supplies;
•currency fluctuations;fluctuations, including exchange rate assumptions;
•other macroeconomic events impacting inflation, interest rates, supply chain, and capital markets;
•geological and metallurgical assumptions;
•operating performance of equipment, processes and facilities;
•environmental impacts and geotechnical challenges including in connection with climate-related and other catastrophic events;
•labor relations;
•healthy and safety impacts including in connection with global events, pandemics, and epidemics;
•timing of receipt of necessary governmental permits or approvals;
•domestic and foreign laws or regulations, particularly relating to the environment, mining and processing;
•changes in tax laws;
•domestic and international economic and political conditions;developments in any jurisdiction in which Newmont operates being consistent with its current expectations;
•our ability to obtain or maintain necessary financing; and
•other risks and hazards associated with mining operations.
More detailed information regarding these factors is included in the section titled Item 1, Business; Item 1A, Risk Factors in the Annual Report on Form 10-K for the year ended December 31, 20222023 as well as elsewhere throughout this report. Many of these factors are beyond our ability to control or predict. Given these uncertainties, readers are cautioned not to place undue reliance on our forward-looking statements.
All subsequent written and oral forward-looking statements attributable to Newmont or to persons acting on its behalf are expressly qualified in their entirety by these cautionary statements. We disclaim any intention or obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws.
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK (dollars in millions, except per ounce and per pound amounts).
Metal Prices
Changes in the market price of gold significantly affect our profitability and cash flow. Gold prices can fluctuate widely due to numerous factors, such as demand; forward selling by producers; central bank sales, purchases and lending; investor sentiment; the strength of the USD; inflation, deflation, or other general price instability; and global mine production levels. Changes in the market price of copper, silver, lead and zinc also affect our profitability and cash flow. These metals are traded on established international exchanges and prices generally reflect market supply and demand but can also be influenced by speculative trading in the commodity or by currency exchange rates. The Company does not currently hold instruments that are designated to hedge against the potential impacts due to market price changes in metals. Consideration of these impacts are discussed below.
Decreases in the market price of metals can also significantly affect the value of our product inventory, stockpiles and leach pads, and it may be necessary to record a write-down to the net realizable value, as well as significantly impact our carrying value of
long-lived assets and goodwill. Refer to Part II, Item 7 of our Annual Report on Form 10-K for the year ended December 31, 20222023 for information regarding the sensitivity of our impairment analyses over long-lived assets and goodwill to changes in metal price.
Net realizable value represents the estimated future sales price based on short-term and long-term metals prices, less estimated costs to complete production and bring the product to sale. The primary factors that influence the need to record write-downs of our stockpiles, leach pads and product inventory include short-term and long-term metals prices and costs for production inputs such as labor, fuel and energy, materials and supplies as well as realized ore grades and recovery rates.
The significant assumptions in determining the stockpile, leach pad and product inventory adjustments for each mine site reporting unit at June 30, 2023March 31, 2024 included production cost and capitalized expenditure assumptions unique to each operation, and the following short-term and long-term assumptions as follows:
| | | | | | | | | | | |
| Short-Term | | Long-Term |
| Gold price (per ounce) | $ | 1,976 | | | $ | 1,600 | |
| Copper price (per pound) | $ | 3.84 | | | $ | 3.50 | |
| Silver price (per ounce) | $ | 24.13 | | | $ | 20.00 | |
| Lead price (per pound) | $ | 0.96 | | | $ | 1.05 | |
| Zinc price (per pound) | $ | 1.15 | | | $ | 1.30 | |
| AUD to USD exchange rate | $ | 0.67 | | | $ | 0.75 | |
| CAD to USD exchange rate | $ | 0.75 | | | $ | 0.80 | |
| MXN to USD exchange rate | $ | 0.06 | | | $ | 0.04 | |
| | | | | | | | | | | |
| Short-Term | | Long-Term |
| Gold price (per ounce) | $ | 2,070 | | | $ | 1,700 | |
| Copper price (per pound) | $ | 3.83 | | | $ | 3.75 | |
| Silver price (per ounce) | $ | 23.34 | | | $ | 22.00 | |
| Lead price (per pound) | $ | 0.94 | | | $ | 0.90 | |
| Zinc price (per pound) | $ | 1.11 | | | $ | 1.25 | |
| AUD to USD exchange rate | $ | 0.66 | | | $ | 0.70 | |
| CAD to USD exchange rate | $ | 0.74 | | | $ | 0.75 | |
| MXN to USD exchange rate | $ | 0.06 | | | $ | 0.05 | |
The net realizable value measurement involves the use of estimates and assumptions unique to each mining operation regarding current and future operating and capital costs, metal recoveries, production levels, commodity prices, proven and probable reserve quantities, engineering data and other factors. A high degree of judgment is involved in determining such assumptions and estimates and no assurance can be given that actual results will not differ significantly from those estimates and assumptions.
Interest Rate Risk
We are subject to interest rate risk related to the fair value of our senior notes which consistis wholly comprised of fixed rates.rates at March 31, 2024. For fixed rate debt, changes in interest rates generally affect the fair value of the debt instrument, but not our earnings or cash flows. The terms of our fixed rate debt obligations do not generally allow investors to demand payment of these obligations prior to maturity. Therefore, we do not have significant exposure to interest rate risk for our fixed rate debt; however, we do have exposure to fair value risk if we repurchase or exchange long-term debt prior to maturity which could be material. See Note 911 to our Condensed Consolidated Financial Statements for further information pertaining to the fair value of our fixed rate debt.
Foreign Currency
In addition to our operations in the U.S., we have significant operations and/or assets in Canada, Mexico, Dominican Republic, Peru, Suriname, Argentina, Chile, Australia, Papua New Guinea, Ecuador, Fiji and Ghana. All of our operations sell their gold, copper, silver, lead and zinc production based on USD metal prices. Foreign currency exchange rates can fluctuate widely due to numerous factors, such as supply and demand for foreign and U.S. currencies and U.S. and foreign country economic conditions. Fluctuations in the local currency exchange rates in relation to the USD can increase or decrease profit margins, capital expenditures, cash flow and Costs applicable to sales per ounce/ poundounce to the extent costs are paid in local currency at foreign operations.
We performed a sensitivity analysis to estimate the impact to Costs applicable to sales per ounce arising from a hypothetical 10% adverse movement to local currency exchange rates at June 30, 2023March 31, 2024 in relation to the U.S. dollar at our foreign mining operations. The sensitivity analyses indicated that a hypothetical 10% adverse movement would result in an approximate $66$103 increase to Costs applicable to sales per ounce at June 30, 2023.March 31, 2024.
Hedging
In May 2023, the Company entered into C$348 of CAD-denominated and A$648 of AUD-denominated fixed forward contracts to mitigate variability in the USD functional cash flows related to the CAD-denominated and AUD-denominated operating expenditures expected to be incurred in 2023 included in the Company's operations located in Canada and Australia, respectively. The Company has designated the fixed forward contracts as foreign currency cash flow hedges against the forecasted CAD-denominated and AUD-denominated operating expenditures.
In October 2022, the Company entered into A$574 of AUD-denominated fixed forward contracts to mitigate variability in the USD functional cash flows related to the AUD-denominated capital expenditures expected to be incurred in 2023 and 2024 during the construction and development phase of the Tanami Expansion 2 project. The Company has designated the forward contracts as foreign currency cash flow hedges against the forecasted AUD-denominated Tanami Expansion 2 capital expenditures.
By using hedges, we are affected by market risk, credit risk, and market liquidity risk. Market risk is the risk that the fair value of a derivative might be adversely affected by a change in currency exchange rates, and that this in turn affects our financial condition. We manage market risk by establishing and monitoring parameters that limit the types and degree of market risk that may be undertaken. We mitigate this potential risk to our financial condition by establishing trading agreements with counterparties under which we are not required to post any collateral or be subject to any margin calls on our derivatives. Our counterparties cannot require settlement solely because of an adverse change in the fair value of a derivative. We have performed a sensitivity analysis as of June 30, 2023, using a modeling technique that measures the change in the fair values arising from a hypothetical 10% adverse movement in the AUD and CAD foreign currency exchange rates relative to the U.S. dollar, with all other variables held constant. The analysis covered all of our AUD and CAD-denominated fixed forward contracts. The foreign currency exchange rates we used in performing the sensitivity analysis were based on AUD and CAD market rates in effect at June 30, 2023. The sensitivity analyses indicated that a hypothetical 10% adverse movement in foreign currency exchange rates would result in an approximate decrease in the fair value of the hedging derivative instruments of $81 at June 30, 2023.
Credit risk is the risk that a third party might fail to fulfill its performance obligations under the terms of a financial instrument. We mitigate credit risk by entering into derivatives with high credit quality counterparties, limiting the amount of exposure to each counterparty and monitoring the financial condition of the counterparties.
Market liquidity risk is the risk that a derivative cannot be eliminated quickly, by either liquidating it or by establishing an offsetting position. Under the terms of our trading agreements, counterparties cannot require us to immediately settle outstanding derivatives, except upon the occurrence of customary events of default such as covenant breaches, including financial covenants, insolvency or bankruptcy. We further mitigate market liquidity risk by spreading out the maturity of our derivatives over time.
Commodity Price Exposure
Our provisional concentrate sales contain an embedded derivative that is required to be separated from the host contract for accounting purposes. The host contract is the receivable from the sale of the respective metal concentrates at the prevailing indices’ prices at the time of sale. The embedded derivative, which is not designated for hedge accounting, is marked to market through earnings each period prior to final settlement.
We perform an analysis on the provisional concentrate sales to determine the potential impact to Net income (loss) attributable to Newmont stockholders for each 10% change to the average price on the provisional concentrate sales subject to final pricing over the next several months. Refer below for our analysis as of June 30, 2023.March 31, 2024.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Gold | | Copper | | Silver | | Lead | | Zinc |
| (ounces,
in thousands) | | (pounds,
in millions) | | (ounces,
in thousands) | | (pounds,
in millions) | | (pounds,
in millions) |
Provisionally priced sales subject to final pricing (1) | 148 | | | 36 | | | 1,966 | | | 26 | | | 47 | |
| Average provisional price, per measure | $ | 1,926 | | | $ | 3.72 | | | $ | 22.84 | | | $ | 0.95 | | | $ | 1.08 | |
| Effect of 10% price change in average price, in millions | $ | 20 | | | $ | 9 | | | $ | 3 | | | $ | 2 | | | $ | 3 | |
Market closing settlement price, per measure (2) | $ | 1,912 | | | $ | 3.72 | | | $ | 22.47 | | | $ | 0.95 | | | $ | 1.07 | |
| | | | | | | | | | | | | | | | | | | | | | | |
| Provisionally Priced Sales Subject to Final Pricing (1) | | Average Provisional
Price (per ounce/pound) | | Effect of 10% change in Average Price (millions) | | Market Closing Settlement Price (2) (per ounce/pound) |
| Gold (ounces, in thousands) | 209 | | | $ | 2,222 | | | $ | 32 | | | $ | 2,214 | |
| Copper (pounds, in millions) | 76 | | | $ | 3.99 | | | $ | 21 | | | $ | 3.96 | |
| Silver (ounces, in millions) | 5 | | | $ | 24.82 | | | $ | 9 | | | $ | 24.54 | |
| Lead (pounds, in millions) | 46 | | | $ | 0.92 | | | $ | 3 | | | $ | 0.89 | |
| Zinc (pounds, in millions) | 87 | | | $ | 1.10 | | | $ | 6 | | | $ | 1.08 | |
Molybdenum (pounds, in millions) (3) | 1 | | | $ | 19.81 | | | $ | 2 | | | $ | 19.99 | |
____________________________
(1)Includes provisionally priced by-product sales subject to final pricing, which are recognized in Costs applicable to sales.
(2)The closing settlement price as of June 30, 2023March 31, 2024 is determined utilizing the London Metal Exchange for copper, lead and zinc and the London Bullion Market Association for gold and silver.
(3)Molybdenum is a by-product at the Cadia site and is recognized as a reduction to Costs applicable to sales.
Hedging Instruments
The Company's hedging instruments consisted of the Cadia Power Purchase Agreement ("Cadia PPA") and foreign currency cash flow hedges at March 31, 2024, which were entered into to mitigate variability in cash flows related to certain commodity prices and foreign currency impacts, respectively. By using hedges, we are affected by market risk, credit risk, and market liquidity risk.
Market Risk
Market risk is the risk that the fair value of a derivative might be adversely affected by a change in commodity prices or currency exchange rates, and that this in turn affects our financial condition. We manage market risk by establishing and monitoring parameters that limit the types and degree of market risk that may be undertaken. We mitigate this potential risk to our financial condition by establishing trading agreements with counterparties under which we are not required to post any collateral or be subject to any margin calls on our derivatives. Our counterparties cannot require settlement solely because of an adverse change in the fair value of a derivative.
In October 2022, the Company entered into A$574 of AUD-denominated fixed forward contracts to mitigate variability in the USD functional cash flows related to the AUD-denominated capital expenditures expected to be incurred in 2023 and 2024 during the construction and development phase of the Tanami Expansion 2 project included in the Company's Tanami segment. The Company has designated the forward contracts as foreign currency cash flow hedges against the forecasted AUD-denominated Tanami Expansion 2 capital expenditures. We have performed a sensitivity analysis as of March 31, 2024, using a modeling technique that measures the change in the fair values arising from a hypothetical 10% adverse movement in the AUD foreign currency exchange rates relative to the U.S. dollar, with all other variables held constant. The foreign currency exchange rates we used in performing the sensitivity analysis were based on AUD market rates in effect at March 31, 2024. The sensitivity analyses indicated that a hypothetical 10% adverse movement in foreign currency exchange rates would result in an approximate decrease in the fair value of the foreign currency cash flow hedges of $9 at March 31, 2024.
The Cadia PPA is a 15-year renewable power purchase agreement acquired by the Company through the Newcrest transaction. At January 1, 2024, the Company designated the Cadia PPA in a cash flow hedging relationship to mitigate variability in cash flows related to approximately 40% of the Company's forecasted purchases of power at the Cadia mine for a 15 year period from the Cadia PPA's commercial operations date, which is expected in the third quarter of 2024. The Cadia PPA was transacted for risk management purposes. We have performed a sensitivity analysis as of March 31, 2024, using a modeling technique that measures the change in the fair values arising from a hypothetical 10% adverse movement in the forward electricity rates relative to current rates, with all other variables held constant. The sensitivity analyses indicated that a hypothetical 10% adverse movement would result in an approximate decrease in the fair value of the Cadia PPA cash flow hedge of $37 at March 31, 2024.
Credit Risk
Credit risk is the risk that a third party might fail to fulfill its performance obligations under the terms of a financial instrument. We mitigate credit risk by entering into derivatives with high credit quality counterparties, limiting the amount of exposure to each counterparty and monitoring the financial condition of the counterparties.
Market Liquidity Risk
Market liquidity risk is the risk that a derivative cannot be eliminated quickly, by either liquidating it or by establishing an offsetting position. Under the terms of our trading agreements, counterparties cannot require us to immediately settle outstanding derivatives, except upon the occurrence of customary events of default such as covenant breaches, including financial covenants, insolvency or bankruptcy. We further mitigate market liquidity risk by spreading out the maturity of our derivatives over time.
ITEM 4. CONTROLS AND PROCEDURES.
During the fiscal period covered by this report, the Company’s management, with the participation of the Chief Executive Officer and Chief Financial Officer of the Company, carried out an evaluation of the effectiveness of the design and operation of the Company’s disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) of the Exchange Act, as amended). Based on such evaluation, the Company’s Chief Executive Officer and Chief Financial Officer have concluded that, as of the end of the period covered by this report, the Company’s disclosure controls and procedures are effective to ensure that information required to be disclosed by the Company in reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported within the required time periods and are designed to ensure that information required to be disclosed in its reports is accumulated and communicated to the Company’s management, including the Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regardingregarding required disclosure.
On November 6, 2023, the Company completed the acquisition of Newcrest Mining Limited (“Newcrest”) which operated under its own set of systems and internal controls. During the three months ended March 31, 2024, the Company transitioned certain of Newcrest’s processes to the Company’s internal control processes and added other internal controls over significant processes specific to the tangible and intangible assets acquired and liabilities assumes as a result of the acquisition, and to post-acquisition activities, including internal controls associated with the valuation of certain assets acquired and liabilities assumed in the transaction. The Company will continue the process of integrating internal controls over financial reporting for Newcrest and plans to incorporate Newcrest in the evaluation of internal controls over financial reporting beginning in the fourth quarter of 2024.
There were no other changes in the Company’s internal control over financial reporting that occurred during the three months ended June 30, 2023,March 31, 2024, that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
PART II—OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS.
Information regarding legal proceedings is contained in Note 1820 of the Condensed Consolidated Financial Statements contained in this report and is incorporated herein by reference.
ITEM 1A. RISK FACTORS.
There were no material changes from the risk factors set forth under Part I, Business; Item 1A, Risk Factors in our Annual Report on Form 10-K for the fiscal year ended December 31, 2022,2023, as filed with the SEC on February 23, 2023, except as set forth below.
Risks Related29, 2024. The risks described in our Annual Report and herein are not the only risks facing us. Additional risks and uncertainties not currently known to the Jurisdictions in Which We Operate.
Our Peñasquito operation in Mexico is subject to social, political, regulatory, and economic risks.
Our Peñasquito operation has in the past, and may in the future, be affected significantly and adversely by social, political, regulatory,us or economic developments in Mexico. A wide range of general and industry-specific Mexican federal and state environmental laws and regulations apply to our operations. These laws and regulations are often difficult and costly to comply with and carry substantial penalties for non-compliance. For example, in the State of Zacatecas, Mexico, environmental taxes became effective in 2017 with little clarity on how the taxes arethat we currently deem to be calculated. An ecological tax agreement was ratified in 2021 which provides clarity for 2021 to 2024, after which, the Company, along with other companies in the State of Zacatecas, will need to engage with governmental authorities to understand how the environmental tax would be levied year-over-year. Additionally, in May 2023, the Mexican government published several amendments to laws relating to the country's mining industry, which includes changes to Mexico's Mining Law, National Waters Law, General Law of Ecological Equilibrium and Environmental Protection and General Law for the Prevention and Integral Handling of Wastes (“Mining Reform”). The Mining Reform is expected to add significant uncertainty for foreign investors in Mexico and companies operating in the mining sector, including Newmont. As a result of the Mining Reform, we expect that it will be more difficult for us to access/maintain rights to land and water, thereby negatively impacting our mining activities within Mexico, raising concerns around exploration programs, security of concessions, and out of cycle community negotiations. If political and regulatory trends continue in a manner that is increasingly less supportive of mining, it can have an adverse impact on our operations and financial results.
Production at our Peñasquito operation is dependent upon the efforts of our employees and, consequently, our maintenance of good relationships with our employees. In recent years, we have had several disputes with the National Union of Mine and Metal Workers of the Mexican Republic (“the Union”). Following negotiations in 2022, Newmont and the Union reached a Collective Bargaining Agreement (“CBA”) in June 2022 whereby Union represented workforce will participate in uncapped profit-sharing bonus up to 10%, which resulted in increased labor costs. In June 2023, the Union made claims regarding violations of legal regulations and labor agreements (which the Company refuted) and notified the Company of a strike action demanding an increase in the uncapped profit-sharing benefit provided for in the CBA from 10 percent to 20 percent, representing a 100 percent increase. The Company urged the Union to abide by the mutually agreed CBA and engaged in dialogue with the Union and the government, but the disagreement remains unresolved. In response to the strike notice, Minera Peñasquito suspended operations and the related shut down remains ongoing. A failure to successfully resolve ongoing union complaints could result in continuation of work stoppages and/or other future disruptions in production and labor issues that couldimmaterial may also materially adversely affect our operations and financial performance and our ability to achieve expected results and guidance. See also the Risk Factor under the heading “Our business depends on good relations with our employees” in our recent Form 10-K.
A deterioration in Mexico’s economy, social instability, political unrest, or other adverse social developments in Mexico could also adversely affect operating results at Peñasquito, as well as the safety and security of the site and workforce. For example, in recent years, Mexico has experienced a period of increasing criminal activity, primarily due to the activities of drug cartels and related criminal organizations, including in the State of Zacatecas. Any increase in the level of violence or a concentration of violence near or around the Peñasquito mine could have an adverse effect on operating results. See the Risk Factor under the heading “Civil disturbances and criminal activities can disrupt business and expose the Company to liability” in our Form 10-K for additional information. See the most recent Form 10-K under Part 1, Item 1A – Risk Factors for additional information regarding risks relating to Mexico, including, without limitation, related to changes in law and increased regulation, increases in requests from government and local stakeholders, taxes, currency and exchange rate exposure, carbon tax and energy costs, availability of energy and water, and other factors.
Risks Relating to the Proposed Newcrest Transaction
As disclosed in this Form 10-Q, including in Part I, Item 1 "Financial statements- Note 1 Basis of Presentation" and Part I, Item 2 “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Overview,” on May 14, 2023, the Company entered into a Scheme Implementation Deed (the "Transaction Agreement") to acquire all issued and outstanding ordinary shares of Newcrest in a stock transaction pursuant to a court-approved Scheme of Arrangement between Newcrest and its shareholders (the “Scheme”, and such acquisition, the “Proposed Newcrest Transaction”). There can be no assurance that the Proposed Newcrest
Transaction will be completed as expected, in a timely manner or at all. The Proposed Newcrest Transaction could subject us to significant risks, including those described below.
The Proposed Newcrest Transaction is subject to satisfaction or waiver of several conditions.
The Proposed Newcrest Transaction is conditional upon, among other things, approval of the issuance of Newmont common stock to Newcrest shareholders in exchange for their Newcrest ordinary shares pursuant to the Transaction Agreement by Newmont’s stockholders, approval of the Scheme by Newcrest shareholders and by the Federal Court of Australia and Newmont and Newcrest having obtained certain regulatory approvals, including, without limitation, approval of competition or antitrust and/or foreign investment authorities in Australia, Canada, and Papua New Guinea. There can be no assurance that any or all such approvals will be obtained or will be obtained in a timely manner.
The Transaction Agreement may be terminated in certain circumstances.
Each of Newmont and Newcrest has the right to terminate the Transaction Agreement in certain circumstances. For instance, either party may terminate the Transaction Agreement if there is or may be a failure of a condition precedent to be satisfied in accordance with its terms and Newmont and Newcrest are unable to agree on a revision to the terms of the Scheme after such failure of the condition precedent of the Scheme has not become effective by 11:59 pm (Melbourne, Australia time) on February 15, 2024. Failure to complete the Proposed Newcrest Transaction could negatively impact the trading price of our common stock or otherwise adversely affect Newmont’s business.
If the Proposed Newcrest Transaction is not completed as a result of, among other reasons, a change in recommendation by a member of our Board of Directors or a material breach of certain terms of the Transaction Agreement by us or there is a competing transaction for us announced and within 18 months we complete such competing transaction, we will be required to pay a termination fee of approximately $375 to Newcrest in connection with the termination of the Transaction Agreement. If the termination fee is ultimately required to be paid to Newcrest, the payment of such fee will have an adverse impact on our financial results.
We will incur significant transaction and transaction-related costs in connection with the Proposed Newcrest Transaction.
We expect to incur significant costs associated with the Proposed Newcrest Transaction and combining the operations of the two companies. Our fees and expenses related to the Proposed Newcrest Transaction include financial advisors’ fees, filing fees, taxes, legal and accounting fees, soliciting fees and regulatory fees, some of which will be paid regardless of whether the Proposed Newcrest Transaction is completed. Furthermore, we will incur costs associated with combining the operations of the two companies. However, it is difficult to predict the amount of these costs before we begin the integration process. We may incur additional unanticipated costs as a consequence of difficulties arising from efforts to integrate the companies.
The market price of shares of our common stock may be adversely affected as a result of the Proposed Newcrest Transaction.
On completion of the Proposed Newcrest Transaction, a significant number of additional shares of our common stock will be issued and available for trading in the public market. The increase in the number of shares of our common stock may lead to sales of such shares or the perception that such sales may occur (commonly referred to as “market overhang”), either of which may adversely affect the market for, and the market price of, shares of our common stock.
In addition, if the Proposed Newcrest Transaction is not completed, the market price of shares of our common stock could decline to the extent that it reflects an assumption that the Proposed Newcrest Transaction will be completed or is material to our business strategy.
We do not currently control Newcrest and its subsidiaries.
We will not control Newcrest and its subsidiaries until completion of the Proposed Newcrest Transaction and the business and results of operations of Newcrest may be adversely affected by events that are outside of our control during the intervening period. The performance of Newcrest may be influenced by, among other factors, economic downturns, changes in commodity prices, political instability in the countries in which Newcrest operates, changes in applicable laws, expropriation, increased environmental regulation, volatility in the financial markets, unfavorable regulatory decisions, litigation, rising costs, civic and labor unrest, disagreements with joint venture partners, delays in ongoing exploration and development projects and other factors beyond our control. As a result of any one or more of these factors, among others, the operations and financial performance of Newcrest may be negatively affected, which may adversely affect the future financial results of the combined company.
Newcrest and Newmont may be the targets of legal claims, securities class actions, derivative lawsuits and other claims and negative publicity related to the Proposed Newcrest Transaction.
Newcrest and Newmont may be the target of securities class actions and derivative lawsuits which could result in substantial costs and may delay or prevent the Proposed Newcrest Transaction. Securities class action lawsuits and derivative lawsuits are often
brought against companies that have entered into an agreement to acquire a public company or to be acquired. Third parties may also attempt to bring claims against Newmont or Newcrest seeking to restrain the Proposed Newcrest Transaction or seeking monetary compensation or other remedies. Even if the lawsuits are without merit, defending against these claims can result in substantial costs and divert management time and resources. Additionally, if a plaintiff is successful in obtaining an injunction prohibiting consummation of the Proposed Newcrest Transaction, then that injunction may delay or prevent the Proposed Newcrest Transaction.
In addition, political and public attitudes towards the Proposed Newcrest Transaction could result in negative press coverage and other adverse public statements affecting Newmont and Newcrest. Adverse press coverage and other adverse statements could lead to investigations by regulators, legislators and law enforcement officials or in legal claims or otherwise negatively impact the ability of the combined company to take advantage of various business and market opportunities. The direct and indirect effects of negative publicity, and the demands of responding to and addressing it, may have a material adverse effect on the combined company’s business, financial condition and results of operations.
We may not realize the anticipated benefits of the Proposed Newcrest Transaction and the integration of Newcrest may not occur as planned.
The Proposed Newcrest Transaction has been agreed with the expectation that its completion will result in an increase in sustained profitability, cost savings and enhanced growth opportunities for the combined company. These anticipated benefits will depend in part on whether Newcrest’s and Newmont’s operations can be integrated in an efficient and effective manner. A significant number of operational and strategic decisions and certain staffing decisions with respect to integration of the two companies have not yet been made. These decisions and the integration of the two companies will present challenges to management, including the integration of systems and personnel of the two companies which may be geographically separated, anticipated and unanticipated liabilities, unanticipated costs (including substantial capital expenditures required by the integration) and the loss of key employees.
The performance of the combined company’s operations after completion of the Proposed Newcrest Transaction could be adversely affected if, among other things, the combined company is not able to achieve the anticipated savings and synergies expected to be realized in entering the Proposed Newcrest Transaction, or retain key employees to assist in the integration and operation of Newcrest and Newmont. The consummation of the Proposed Newcrest Transaction may pose special risks, including one-time write-offs, restructuring charges and unanticipated costs. In addition, the integration process could result in diversion of the attention of management and disruption of existing relationships with suppliers, employees, customers and other constituencies of each company. Although Newmont and its advisors have conducted due diligence on the operations of Newcrest, there can be no guarantee that Newmont is aware of any and all liabilities of Newcrest. As a result of these factors, it is possible that certain benefits expected from the combination of Newcrest and Newmont may not be realized.
Newcrest’s public filings are subject to Australian disclosure standards, which differ from SEC disclosure requirements.
Our mineral reserve and mineral resource estimates have been prepared in accordance with Subpart 1300 of Regulation S-K adopted by the SEC. We have not been involved in the preparation of Newcrest’s mineral reserve and mineral resource estimates. Newcrest’s mineral reserves and mineral resource estimates were prepared to meet the reporting requirements of the ASX Listing Rules Chapter 5, December 2019; the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves, December 2012 (the “JORC Code”), which differs from the requirements of Subpart 1300 of Regulation S-K.
Subpart 1300 of Regulation S-K and the JORC Code have similar goals in terms of conveying an appropriate level of confidence in the disclosures being reported, but embody different approaches and definitions. For example, the terms “Ore Reserve” and “Proved Ore Reserve” are Australian mining terms as defined in the JORC Code, and these definitions differ from the definitions in Subpart 1300 of Regulation S-K. “Inferred mineral resources” have a great amount of uncertainty as to the existence of such resources and their economic and legal feasibility. A significant amount of exploration must be completed in order to determine whether an inferred mineral resource may be upgraded to a higher category. Under Subpart 1300 of Regulation S-K standards, a pre-feasibility study, as defined within the rule, is typically required to report mineral reserves supported by a discounted cash flow analysis. The requirements for a pre-feasibility study under Subpart 1300 are generally stricter than what is acceptable under JORC and could require reclassification of previously declared mineral reserves to mineral resources, and there may also be adjustments to the amounts of previously declared mineral resources pending further study work.
Expectations regarding the mineral reserves and mineral resources of Newmont and Newcrest following the closing of the Proposed Transaction will remain subject to adjustment, pending continuing review of Newcrest’s mineral reserves and mineral resources in accordance with Subpart 1300 of Regulation S-K standards. Future adjustment may occur due to differing standards, required study levels, price assumptions, future divestments and acquisitions and other factors.
The combined company will face political risks in new jurisdictions.
Newcrest’s principal operations, development and exploration activities and significant investments will expose us to new jurisdictions, including Papua New Guinea, Ecuador and Fiji, some of which may be considered to have an increased degree of political and sovereign risk. Any material adverse changes in government policies or legislation of such countries or any other country that Newcrest has economic interests in may affect the viability and profitability of the combined company following the Proposed Newcrest Transaction.
While the governments in Papua New Guinea, Ecuador and Fiji have historically supported the development of natural resources by foreign companies, there is no assurance that such governments will not in the future adopt different regulations, policies or interpretations with respect to, but not limited to, foreign ownership of mineral resources, royalty rates, taxation, rates of exchange, environmental protection, labor relations, repatriation of income or return of capital, restrictions on production or processing, price controls, export controls, currency remittance, or the obligations of Newcrest under its respective mining codes and stability conventions. The possibility that such governments may adopt substantially different policies or interpretations, which might extend to the expropriation of assets, may have a material adverse effect on the combined company following the Proposed Newcrest Transaction. Political risk also includes the possibility of terrorism, civil or labor disturbances and political instability. No assurance can be given that applicable governments will not revoke or significantly alter the conditions of the applicable exploration and mining authorizations, nor can assurance be given that such exploration and mining authorizations will not be challenged or impugned by third parties. The effect of any of these factors may have a material adverse effect on the combined company’s results of operations and financial condition.
Increased exposure to foreign exchange fluctuations and capital controls may adversely affect the combined company’s earnings and the value of the combined company’s assets.
Our reporting currency is the U.S. dollar and the majority of our earnings and cash flows are denominated in U.S. dollars. The operations of Newcrest are also conducted in U.S. dollars, but Newcrest conducts some of its business in currencies other than the U.S. dollar and, as a result, following the Proposed Newcrest Transaction, the combined company’s consolidated earnings and cash flows may be impacted by movements in the exchange rates to a greater extent than prior to the Proposed Newcrest Transaction. In particular, any change in the value of the currencies of the Australian Dollar, the Papua New Guinean Kina, the Canadian Dollar, the Chilean Peso or the Fijian Dollar versus the U.S. dollar following the Proposed Newcrest Transaction could negatively impact the combined company’s earnings, and could negatively impact the combined company’s ability to realize all of the anticipated benefits of the Proposed Newcrest Transaction.
In addition, from time to time, emerging market countries such as those in which the combined company will operate adopt measures to restrict the availability of the local currency or the repatriation of capital across borders. These measures are imposed by governments or central banks, in some cases during times of economic instability, to prevent the removal of capital or the sudden devaluation of local currencies or to maintain in-country foreign currency reserves. In addition, many emerging markets countries require consents or reporting processes before local currency earnings can be converted into U.S. dollars or other currencies and/or such earnings can be repatriated or otherwise transferred outside of the operating jurisdiction. These measures may have a number of negative effects on the combined company, reduction of the immediately available capital that the combined company could otherwise deploy for investment opportunities or the payment of expenses. In addition, measures that restrict the availability of the local currency or impose a requirement to operate in the local currency may create other practical difficulties for the combined company.
The combined company will face new legislation and tax risks in certain Newcrest operating jurisdictions.
Newcrest has operations and conducts business in a number of jurisdictions in which we do not currently operate or conduct business, which may increase our susceptibility to sudden tax changes. Taxation laws of these jurisdictions are complex, subject to varying interpretations and applications by the relevant tax authorities and subject to changes and revisions in the ordinary course. In addition, the Proposed Newcrest Transaction and integration of Newcrest may subject us to tax liabilities that may exist at Newcrest or may arise in connection with the completion of the Proposed Newcrest Transaction, which are currently unknown. Any unexpected taxes imposed on the combined company could have a material and adverse impact on the combined company.
Failure by Newcrest to comply with applicable laws prior to the Proposed Newcrest Transaction could subject the combined company to adverse consequences following the Proposed Newcrest Transaction.
Newcrest is subject to anti-corruption and anti-bribery laws, including the U.S. Foreign Corrupt Practices Act, the Australian Criminal Code Act of 1955 and the Corruption of Foreign Public Officials Act (Canada). The foregoing laws prohibit companies from making improper payments to officials, require the maintenance of records and require adequate internal controls. Following the Proposed Newcrest Transaction, the combined company may be liable for any violation of the foregoing laws attributable to Newcrest prior to the Proposed Newcrest Transaction.
Newcrest is also subject to a wide variety of laws relating to the environment, health and safety, taxes, employment, labor standards, money laundering, terrorist financing and other matters. Failure by Newcrest to comply with any of the foregoing legislation prior to the Proposed Newcrest Transaction could result in severe criminal or civil sanctions, and may subject the combined company to other liabilities, including fines, prosecution and reputational damage, all of which could have a material adverse effect on the business, consolidated results of operations and consolidated financial condition of the combined company. The compliance mechanisms and monitoring programs adopted and implemented by Newcrest prior to the Proposed Newcrest Transaction may not adequately prevent or detect possible violations of such applicable laws. Investigations by governmental authorities related to any actual or perceived violation of the foregoing laws could also have a material adverse effect on the business, consolidated results of operations, and consolidated financial condition of the combined company.
The pendency of the Proposed Newcrest Transaction may cause disruptions in our business, which could have an adverse effect on our business, financial condition, or results of operations.
Parties with which we and Newcrest do business may experience uncertainty associated with the Proposed Newcrest Transaction, including with respect to current cash flows and/or future business relationships with us, Newcrest or the combined company. Our and Newcrest’s relationships may be subject to disruption as customers, suppliers and other persons with whom we and Newcrest have a business relationship may delay or defer certain business decisions or might decide to seek to terminate, change or renegotiate their relationships with us or Newcrest, as applicable, or consider entering into business relationships with parties other than us or Newcrest. In addition, our current and prospective associates may experience uncertainty about their future roles, which might adversely affect our ability to attract and retain key personnel and key management and other employees may be difficult to retain or may become distracted from day-to-day operations because matters related to the Proposed Newcrest Transaction may require substantial commitments of their time and resources. These disruptions could have an adverse effect on the results of operations, cash flows and financial position of us, Newcrest or the combined company following the completion of the Proposed Newcrest Transaction, including an adverse effect on our ability to realize the expected synergies and other benefits of the Proposed Newcrest Transaction. The risk, and adverse effect, of any disruption could be exacerbated by a delay in the completion of the Proposed Newcrest Transaction or the termination of the Transaction Agreement.results.
ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS.
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| Period | | Total Number of Shares Purchased (1) | | Average Price Paid Per Share (1) | | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | | Maximum Dollar Value of Shares that may yet be Purchased under the Plans or Programs |
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| April 1, 2023 through April 30, 2023 | | 4,234 | | $ | 48.15 | | | — | | N/A |
| May 1, 2023 through May 31, 2023 | | 4,112 | | $ | 48.42 | | | — | | N/A |
| June 1, 2023 through June 30, 2023 | | 555 | | $ | 49.15 | | | — | | N/A |
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| | (a) | | (b) | | (c) | | (d) |
| Period | | Total Number of Shares Purchased (1) | | Average Price Paid Per Share (1) | | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (2) | | Maximum Dollar Value of Shares that may yet be Purchased under the Plans or Programs (2) |
| January 1, 2024 through January 31, 2024 | | 6,057 | | | $ | 42.72 | | | — | | | $ | 1,000,000,000 | |
| February 1, 2024 through February 29, 2024 | | 249,590 | | | $ | 31.96 | | | — | | | $ | 1,000,000,000 | |
| March 1, 2024 through March 31, 2024 | | 59,927 | | | $ | 29.86 | | | — | | | $ | 1,000,000,000 | |
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___________________________(1)The total number of shares purchased (and the average price paid per share) reflects shares delivered to the Company from stock awards held by employees upon vesting for the purpose of covering the recipients’ tax withholding obligations.
(2)On February 21, 2024, the Board of Directors authorized a stock repurchase program to repurchase shares of outstanding common stock to offset the dilutive impact of employee stock award vesting and to provide returns to shareholders, provided that the aggregate value of shares of common stock repurchased does not exceed $1 billion. The program will expire after 24 months (in February 2026). The program will be executed at the Company's discretion. The repurchase program may be discontinued at any time, and the program does not obligate the Company to acquire any specific number of shares of its common stock or to repurchase the full authorized amount during the authorization period. Consequently, the Board of Directors may revise or terminate such share repurchase authorization in the future.
ITEM 3. DEFAULTS UPON SENIOR SECURITIES.
None.
ITEM 4. MINE SAFETY DISCLOSURES.
At Newmont, safety is a core value, and we strive for superior performance. Our health and safety management system, which includes detailed standards and procedures for safe production, addresses topics such as employee training, risk management, workplace inspection, emergency response, accident investigation and program auditing. In addition to strong leadership and involvement from all levels of the organization, these programs and procedures form the cornerstone of safety at Newmont, ensuring that employees are provided a safe and healthy environment and are intended to reduce workplace accidents, incidents and losses, comply with all mining-related regulations and provide support for both regulators and the industry to improve mine safety.
In addition, we have established our “Rapid Response” crisis management process to mitigate and prevent the escalation of adverse consequences if existing risk management controls fail, particularly if an incident may have the potential to seriously impact the safety of employees, the community or the environment. This process provides appropriate support to an affected site to complement their technical response to an incident, so as to reduce the impact by considering the environmental, strategic, legal, financial and public image aspects of the incident, to ensure communications are being carried out in accordance with legal and ethical requirements and to identify actions in addition to those addressing the immediate hazards.
The health and safety of our people and our host communities is paramount. This is why Newmont continues to sustain robust controlsSadly, we recently lost four of our colleagues over the past six-month period, Adam Kennedy at our operationsBrucejack mine, Ike Cobbinah Morrison at our Ahafo North project, and offices globally.Rosana Ledesma and Daniel Ochoa at our Cerro Negro mine. These tragic losses have had a profound impact on the entire Newmont community, and it is with great humility and resolve that we will continue to challenge ourselves to ensure everyone working in Newmont’s business goes home safely to their loved ones. These tragic incidents remind us of the inherent risks in mining and underscore the importance of constant vigilance and adherence to the critical controls that must be in place before undertaking a task. We have intensified our efforts to strengthen our Fatality Risk Management system and fundamental safety tools and practices. Along with conducting thorough investigations into these incidents, our response will include both implementing immediate measures from early observations from the investigations, as well as taking a structured approach to reinvigorate our safety systems, tools, and in field leadership activities with a heavy focus on the quality of application.
The operation of our U.S. based mine is subject to regulation by the Federal Mine Safety and Health Administration (“MSHA”) under the Federal Mine Safety and Health Act of 1977 (the “Mine Act”). MSHA inspects our mine on a regular basis and issues various citations and orders when it believes a violation has occurred under the Mine Act. Following passage of The Mine Improvement and New Emergency Response Act of 2006, MSHA significantly increased the numbers of citations and orders charged against mining operations. The dollar penalties assessed for citations issued has also increased in recent years.
Newmont is required to report certain mine safety violations or other regulatory matters required by Section 1503(a) of the Dodd-Frank Wall Street Reform and Consumer Protection Act and Item 104 of Regulation S-K, and that required information is included in Exhibit 95 and is incorporated by reference into this Quarterly Report. It is noted that the Nevada mines owned by Nevada Gold
Mines LLC, a joint venture between the Company (38.5%) and Barrick Gold Corporation (“Barrick”) (61.5%), are not included in the Company’s Exhibit 95 mine safety disclosure reporting as such sites are operated by our joint venture partner, Barrick.
ITEM 5. OTHER INFORMATION.
Rule 10b5-1 Trading Plans
Our directors and executive officers may purchase or sell shares of our common stock in the market from time to time, including pursuant to equity trading plans adopted in accordance with Rule 10b5-1 under the Exchange Act and in compliance with guidelines specified by the Company’s stock trading standard. In accordance with Rule 10b5-1 and the Company’s insider trading policy, directors, officers and certain employees who, at such time, are not in possession of material non-public information about the Company are permitted to enter into written plans that pre-establish amounts, prices and dates (or formula for determining the amounts, prices and dates) of future purchases or sales of the Company’s stock, including shares acquired pursuant to the Company’s employee and director equity plans. Under the Company’s stock trading standard, the first trade made pursuant to a Rule 10b5-1 trading plan may take place no earlier than 90 days after adoption of the trading plan. Under a Rule 10b5-1 trading plan, a broker executes trades pursuant to parameters established by the director or executive officer when entering into the plan, without further direction from them. The use of these trading plans permits asset diversification as well as financial and tax planning. Our directors and executive officers also may buy or sell additional shares outside of a Rule 10b5-1 plan when they are not in possession of material nonpublic information, subject to compliance with SEC rules, the terms of our stock trading standard and holding requirements. TheDuring the three months ended March 31, 2024, the following table shows thedirectors and executive officers adopted or terminated Rule 10b5-1 trading plans intended to satisfy the affirmative defense conditions of Rule 10b-1(c)10b5-1(c):
On January 29, 2024, Rob Atkinson, Executive Vice President and Chief Operating Officer, terminated a trading arrangement previously adopted or terminated by our directors and executive officers duringwith respect to the three months ended June 30, 2023.
| | | | | | | | | | | | | | | | | | | | | | | | | | |
Name and Position | | Plan Adoption/Termination | | Plan Adoption Date | | Durationsale of securities of Plan (Expiration Date) | | Number of Shares to be Purchased (Sold) under Plan |
Rob Atkinson, Executive Vice President and Chief Operating Officer | | Adoption | | May 30, 2023 | | August 2, 2024 | | (66,000) |
Nancy Lipson, Executive Vice President and Chief Legal Officer (1)
| | Adoption | | May 19, 2023 | | March 4, 2024 | | (25,553) |
Mark Ebel, Interim Chief Legal Officer (1)
| | Adoption | | May 23, 2023 | | March 6, 2024 | | (8,663) |
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(1)Ms. Lipson departed the Company as of JuneCompany’s common stock (a “Rule 10b5-1 Trading Plan”). Mr. Atkinson’s Rule 10b5-1 Trading Plan was adopted on May 30, 2023, had a term of 14 months, and is no longer a Section 16 officerprovided for the sale of Newmont, and Mr. Ebel assumedup to 66,000 shares of common stock pursuant to the role of interim Chief Legal Officer at such time. Mr. Ebel was not a Section 16 officer at the time of executionterms of the listedplan. As of the date of termination of the Rule 10b5-1 plan.
TransactionsTrading Plan, Mr. Atkinson had sold 27,500 shares of common stock under Section 16 officerits terms. The adoption of such 10b5-1 Trading Plan, and its subsequent termination, each occurred during an open insider trading plans will be disclosed publicly through Form 144window and Form 4 filingscomplied with the SECCompany’s standards on insider trading.
On March 28, 2024, Tom Palmer, President, Chief Executive Officer and Director, adopted a Rule 10b5-1 Trading Plan. Mr. Palmer’s Rule 10b5-1 Trading Plan has a term of 11 months and provides for the sale of up to 104,000 shares of common stock pursuant to the extent required by law. No non-Rule 10b5-1 trading arrangements (as defined by Item 408(a) of Regulation S-K) were entered into by Section 16 director or officerterms of the Companyplan. The adoption of such 10b5-1 Trading Plan occurred during an open insider trading window and complied with the covered period.Company’s standards on insider trading.
ITEM 6. EXHIBITS. | | | | | | | | | | | |
Exhibit
Number | | Description |
| | |
| 4.1 | - | |
| | |
| 4.2 | - | |
| | |
| 4.3 | - | |
| | |
| 10.1 | - | Scheme Implementation Deed,Amended and Restated Credit Agreement, dated as of MayFebruary 15, 2023, by2024, to the Credit Agreement, dated as of April 4, 2019, among the Registrant as borrower, the lenders issuing banks party thereto, and among Newmont Corporation, Newmont Sub and Newcrest Mining Limited.Citibank N.A., as administrative agent. Incorporated by reference to Exhibit 2.110.1 to the Registrant's Form 8-K filed with the Securities and Exchange Commission on May 15, 2023.February 22, 2024. |
| | |
| 10.2*† | | |
| 10.2 | |
| 10.3*† | - | |
| | |
31.131.1* | - | |
| | |
31.231.2* | - | |
| | |
32.132.1* | - | |
| | |
32.232.2* | - | |
| | |
| 95 | - | |
| | |
101101.INS** | - | 101.INS | XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. |
| | |
| 101.SCH** | 101.SCH- | Inline XBRL Taxonomy Extension Schema Document. |
| | |
| 101.CAL** | 101.CAL- | Inline XBRL Taxonomy Extension Calculation Linkbase Document. |
| | |
| 101.DEF** | 101.DEF- | Inline XBRL Taxonomy Extension Definition Linkbase Document. |
| | |
| 101.LAB** | 101.LAB- | Inline XBRL Taxonomy Extension LabelsLabel Linkbase Document. |
| | |
| 101.PRE** | 101.PRE- | Inline XBRL Taxonomy Extension Presentation Linkbase Document. |
| | | |
104104** | | Cover Page Interactive Data File (embedded within the XBRL document)document contained in Exhibit 101) |
____________________________
*Filed or furnished herewith.
**Submitted electronically herewith.
†Management contract or compensatory plan or arrangement.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. | | | | | |
| NEWMONT CORPORATION |
| (Registrant) |
| |
Date: July 20, 2023April 29, 2024 | /s/ KARYN F. OVELMEN |
| Karyn F. Ovelmen |
| Executive Vice President and Chief Financial Officer |
| (Principal Financial Officer) |
| |
Date: July 20, 2023April 29, 2024 | /s/ JOSHUA L. CAGE |
| Joshua L. Cage |
| Chief Accounting Officer and Controller |
| (Principal Accounting Officer) |
