Exhibit 12.2
Newmont Mining Corporation
Computation of Ratio of Earnings to Fixed Charges
(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 | |||||
Minority interest of majority owned subsidiaries |
| 65,374 |
|
| 92,814 |
|
| 44,141 |
|
| 71,825 |
|
| 75,017 | |||||
$ | 72,707 |
| $ | 162,700 |
| $ | 34,319 |
| $ | (575,041 | ) | $ | 226,390 | ||||||
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 | |||||
Portion of rental expense representative of |
| 2,747 |
|
| 2,936 |
|
| 2,914 |
|
| 4,361 |
|
| 3,849 | |||||
| �� | |||||||||||||||||||
$ | 111,460 |
| $ | 114,590 |
| $ | 109,444 |
| $ | 114,681 |
| $ | 114,920 | ||||||
Ratio of earnings to fixed charges |
| (3 | ) |
| 1.4 |
|
| (3 | ) |
| (3 | ) |
| 2.0 | |||||
| (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 $38.8 million, $75.1 million and $689.7 million, respectively. |
