Exhibit 12.1
Newmont Mining Corporation
Computation of Ratio of Earnings to Fixed Charges and Preferred Dividends
(Amounts in thousands except ratio, as restated)
For the Year Ended December 31, | ||||||||||||||||||||
2001 | 2000 | 1999 | 1998(2) | 1997(2) | ||||||||||||||||
Earnings: | ||||||||||||||||||||
Income (loss) before income taxes and cumulative effect of changes in accounting principles | $ | (128,425 | ) | $ | (30,033 | ) | $ | (9,019 | ) | $ | (646,348 | ) | $ | 53,136 |
| |||||
Adjustments: | ||||||||||||||||||||
Net interest expense (1) |
| 98,080 |
|
| 106,120 |
|
| 83,185 |
|
| 96,618 |
|
| 90,967 |
| |||||
Amortization of capitalized interest |
| 7,362 |
|
| 8,793 |
|
| 4,886 |
|
| 4,435 |
|
| 3,221 |
| |||||
Portion of rental expense representative of interest |
| 2,747 |
|
| 2,936 |
|
| 2,914 |
|
| 4,361 |
|
| 3,849 |
| |||||
Undistributed income (loss) of affiliate |
| 27,569 |
|
| (17,930 | ) |
| (91,788 | ) |
| (105,932 | ) |
| 200 |
| |||||
Preferred dividends |
| (11,500 | ) |
| (11,500 | ) |
| (11,500 | ) |
| (11,500 | ) |
| (11,500 | ) | |||||
Minority interest of majority owned subsidiaries |
| 65,374 |
|
| 92,814 |
|
| 44,141 |
|
| 71,825 |
|
| 75,017 |
| |||||
$ | 61,207 |
| $ | 151,200 |
| $ | 22,819 |
| $ | (586,541 | ) | $ | 214,890 |
| ||||||
Fixed Charges: | ||||||||||||||||||||
Net interest expense (1) | $ | 98,080 |
| $ | 106,120 |
| $ | 83,185 |
| $ | 96,600 |
| $ | 90,967 |
| |||||
Capitalized interest |
| 10,633 |
|
| 5,534 |
|
| 23,345 |
|
| 13,720 |
|
| 20,104 |
| |||||
Preferred dividends |
| 11,500 |
|
| 11,500 |
|
| 11,500 |
|
| 11,500 |
|
| 11,500 |
| |||||
Portion of rental expense representative of |
| 2,747 |
|
| 2,936 |
|
| 2,914 |
|
| 4,361 |
|
| 3,849 |
| |||||
$ | 122,960 |
| $ | 126,090 |
| $ | 120,944 |
| $ | 126,181 |
| $ | 126,420 |
| ||||||
Ratio of earnings to fixed charges |
| (3 | ) |
| 1.2 |
|
| (3 | ) |
| (3 | ) |
| 1.7 |
| |||||
| (1) | Includes interest expense of majority-owned subsidiaries and amortization of debt issuance costs. |
| (2) | As a result of the restatement of the Company’s Consolidated Financial Statements (see Item 7 and Note 23 to the Consolidated Financial Statements), the financial information for 1998 and 1997 is derived from unaudited Consolidated Financial Statements. |
| (3) | The ratio was less than 1:1 for the years ended December 31, 2001, 1999 and 1998 as earnings were inadequate to cover fixed charges by deficiencies of $61.8 million, $98.1 million and $712.7 million, respectively. |
