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SECURITIES AND EXCHANGE COMMISSION
þ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 84-1611629 | |
(State or Other Jurisdiction of | (I.R.S. Employer | |
Incorporation or Organization) | Identification No.) | |
6363 South Fiddler’s Green Circle | 80111 | |
Greenwood Village, Colorado | (Zip Code) | |
(Address of Principal Executive Offices) |
Large accelerated filerþ | Accelerated filero | Non-accelerated filero | Smaller reporting companyo | |||
(Do not check if a smaller reporting company.) |
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S-1 | ||||||||
EXHIBIT INDEX | E-1 | |||||||
Exhibit 3.1 | ||||||||
Exhibit 10.1 | ||||||||
Exhibit 10.2 | ||||||||
Exhibit 10.3 | ||||||||
Exhibit 10.4 | ||||||||
Exhibit 12.1 | ||||||||
Exhibit 31.1 | ||||||||
Exhibit 31.2 | ||||||||
Exhibit 32.1 | ||||||||
Exhibit 32.2 | ||||||||
EX-101 INSTANCE DOCUMENT | ||||||||
EX-101 SCHEMA DOCUMENT | ||||||||
EX-101 CALCULATION LINKBASE DOCUMENT | ||||||||
EX-101 LABELS LINKBASE DOCUMENT | ||||||||
EX-101 PRESENTATION LINKBASE DOCUMENT | ||||||||
EX-101 DEFINITION LINKBASE DOCUMENT |
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Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2009 | 2008 | 2009 | 2008 | |||||||||||||
Revenues | ||||||||||||||||
Sales — gold, net | $ | 1,373 | $ | 1,320 | $ | 2,748 | $ | 2,813 | ||||||||
Sales — copper, net | 229 | 183 | 390 | 615 | ||||||||||||
1,602 | 1,503 | 3,138 | 3,428 | |||||||||||||
Costs and expenses | ||||||||||||||||
Costs applicable to sales — gold(1) | 635 | 645 | 1,289 | 1,277 | ||||||||||||
Costs applicable to sales — copper(1) | 61 | 104 | 146 | 254 | ||||||||||||
Amortization | 176 | 183 | 367 | 362 | ||||||||||||
Accretion (Note 23) | 8 | 8 | 17 | 16 | ||||||||||||
Exploration | 51 | 58 | 92 | 97 | ||||||||||||
Advanced projects, research and development (Note 3) | 42 | 39 | 73 | 69 | ||||||||||||
General and administrative | 40 | 37 | 79 | 66 | ||||||||||||
Other expense, net (Note 4) | 116 | 118 | 192 | 180 | ||||||||||||
1,129 | 1,192 | 2,255 | 2,321 | |||||||||||||
Other income (expense) | ||||||||||||||||
Other income, net (Note 5) | 9 | 19 | 18 | 34 | ||||||||||||
Interest expense, net | (23 | ) | (35 | ) | (55 | ) | (63 | ) | ||||||||
(14 | ) | (16 | ) | (37 | ) | (29 | ) | |||||||||
Income from continuing operations before income tax (expense) benefit and other items | 459 | 295 | 846 | 1,078 | ||||||||||||
Income tax (expense) benefit (Note 8) | (136 | ) | 42 | (241 | ) | (187 | ) | |||||||||
Equity loss of affiliates | (3 | ) | — | (8 | ) | (5 | ) | |||||||||
Income from continuing operations | 320 | 337 | 597 | 886 | ||||||||||||
(Loss) income from discontinued operations (Note 9) | (14 | ) | 2 | (14 | ) | 10 | ||||||||||
Net income | 306 | 339 | 583 | 896 | ||||||||||||
Less: Net income attributable to noncontrolling interests (Note 10) | 144 | 68 | 232 | 260 | ||||||||||||
Net income attributable to Newmont stockholders | $ | 162 | $ | 271 | $ | 351 | $ | 636 | ||||||||
Net income attributable to Newmont stockholders: | ||||||||||||||||
Continuing operations | $ | 171 | $ | 270 | $ | 360 | $ | 627 | ||||||||
Discontinued operations | (9 | ) | 1 | (9 | ) | 9 | ||||||||||
$ | 162 | $ | 271 | $ | 351 | $ | 636 | |||||||||
Income per common share (Note 11) | ||||||||||||||||
Basic: | ||||||||||||||||
Continuing operations | $ | 0.35 | $ | 0.60 | $ | 0.75 | $ | 1.38 | ||||||||
Discontinued operations | (0.02 | ) | — | (0.02 | ) | 0.02 | ||||||||||
$ | 0.33 | $ | 0.60 | $ | 0.73 | $ | 1.40 | |||||||||
Diluted: | ||||||||||||||||
Continuing operations | $ | 0.35 | $ | 0.59 | $ | 0.75 | $ | 1.37 | ||||||||
Discontinued operations | (0.02 | ) | — | (0.02 | ) | 0.02 | ||||||||||
$ | 0.33 | $ | 0.59 | $ | 0.73 | $ | 1.39 | |||||||||
Basic weighted-average common shares outstanding | 490 | 454 | 483 | 454 | ||||||||||||
Diluted weighted-average common shares outstanding | 491 | 456 | 484 | 457 | ||||||||||||
Cash dividends declared per common share | $ | 0.10 | $ | 0.10 | $ | 0.20 | $ | 0.20 | ||||||||
(1) | Exclusive of Amortization and Accretion. |
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At June 30, | At December 31, | |||||||
2009 | 2008 | |||||||
ASSETS | ||||||||
Cash and cash equivalents | $ | 544 | $ | 435 | ||||
Marketable securities and other short-term investments (Note 17) | 19 | 12 | ||||||
Trade receivables | 229 | 104 | ||||||
Accounts receivable | 283 | 214 | ||||||
Inventories (Note 18) | 481 | 507 | ||||||
Stockpiles and ore on leach pads (Note 19) | 318 | 290 | ||||||
Deferred income tax assets | 188 | 284 | ||||||
Other current assets (Note 20) | 395 | 455 | ||||||
Current assets | 2,457 | 2,301 | ||||||
Property, plant and mine development, net | 11,825 | 10,128 | ||||||
Investments (Note 17) | 902 | 655 | ||||||
Stockpiles and ore on leach pads (Note 19) | 1,326 | 1,136 | ||||||
Deferred income tax assets | 1,126 | 1,039 | ||||||
Other long-term assets (Note 20) | 218 | 207 | ||||||
Goodwill | 188 | 188 | ||||||
Assets of operations held for sale (Note 9) | 69 | 73 | ||||||
Total assets | $ | 18,111 | $ | 15,727 | ||||
LIABILITIES | ||||||||
Current portion of long-term debt (Note 21) | $ | 221 | $ | 165 | ||||
Accounts payable | 310 | 411 | ||||||
Employee-related benefits | 162 | 170 | ||||||
Income and mining taxes | 90 | 61 | ||||||
Other current liabilities (Note 22) | 1,071 | 770 | ||||||
Current liabilities | 1,854 | 1,577 | ||||||
Long-term debt (Note 21) | 2,810 | 3,072 | ||||||
Reclamation and remediation liabilities (Note 23) | 721 | 699 | ||||||
Deferred income tax liabilities | 1,237 | 1,051 | ||||||
Employee-related benefits | 404 | 379 | ||||||
Other long-term liabilities (Note 22) | 277 | 252 | ||||||
Liabilities of operations held for sale (Note 9) | 54 | 36 | ||||||
Total liabilities | 7,357 | 7,066 | ||||||
Commitments and contingencies (Note 27) | ||||||||
STOCKHOLDERS’ EQUITY | ||||||||
Common stock | 768 | 709 | ||||||
Additional paid-in capital | 8,052 | 6,831 | ||||||
Accumulated other comprehensive income (loss) | 141 | (253 | ) | |||||
Retained earnings | 302 | 4 | ||||||
Total Newmont stockholders’ equity | 9,263 | 7,291 | ||||||
Noncontrolling interests | 1,491 | 1,370 | ||||||
Total stockholders’ equity (Note 13) | 10,754 | 8,661 | ||||||
Total liabilities and stockholders’ equity | $ | 18,111 | $ | 15,727 | ||||
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(unaudited, in millions)
Six Months Ended | ||||||||
June 30, | ||||||||
2009 | 2008 | |||||||
Operating activities: | ||||||||
Net income | $ | 583 | $ | 896 | ||||
Adjustments: | ||||||||
Amortization | 367 | 362 | ||||||
Loss (income) from discontinued operations (Note 9) | 14 | (10 | ) | |||||
Accretion of accumulated reclamation obligations (Note 23) | 23 | 20 | ||||||
Deferred income taxes | (13 | ) | (208 | ) | ||||
Write-down of investments | 6 | 56 | ||||||
Stock based compensation and other benefits | 30 | 24 | ||||||
Other operating adjustments and write-downs | 53 | 90 | ||||||
Net change in operating assets and liabilities (Note 24) | (177 | ) | (259 | ) | ||||
Net cash provided from continuing operations | 886 | 971 | ||||||
Net cash provided from (used in) discontinued operations (Note 9) | 8 | (107 | ) | |||||
Net cash provided from operations | 894 | 864 | ||||||
Investing activities: | ||||||||
Additions to property, plant and mine development | (910 | ) | (893 | ) | ||||
Investments in marketable debt and equity securities | — | (17 | ) | |||||
Proceeds from sale of marketable debt and equity securities | 5 | 17 | ||||||
Acquisitions, net (Note 14) | (760 | ) | (325 | ) | ||||
Other | (7 | ) | (16 | ) | ||||
Net cash used in investing activities of continuing operations | (1,672 | ) | (1,234 | ) | ||||
Net cash used in investing activities of discontinued operations (Note 9) | — | (10 | ) | |||||
Net cash used in investing activities | (1,672 | ) | (1,244 | ) | ||||
Financing activities: | ||||||||
Proceeds from debt, net | 1,494 | 1,023 | ||||||
Repayment of debt | (1,668 | ) | (625 | ) | ||||
Dividends paid to common stockholders | (98 | ) | (91 | ) | ||||
Dividends paid to noncontrolling interests | (112 | ) | (147 | ) | ||||
Proceeds from stock issuance, net | 1,247 | 24 | ||||||
Change in restricted cash and other | 5 | 7 | ||||||
Net cash provided from financing activities of continuing operations | 868 | 191 | ||||||
Net cash used in financing activities of discontinued operations (Note 9) | (2 | ) | (2 | ) | ||||
Net cash provided from financing activities | 866 | 189 | ||||||
Effect of exchange rate changes on cash | 21 | (4 | ) | |||||
Net change in cash and cash equivalents | 109 | (195 | ) | |||||
Cash and cash equivalents at beginning of period | 435 | 1,231 | ||||||
Cash and cash equivalents at end of period | $ | 544 | $ | 1,036 | ||||
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(dollars in millions, except per share, per ounce and per pound amounts)
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(dollars in millions, except per share, per ounce and per pound amounts)
At June 30, 2009 | At December 31, 2008 | |||||||||||||||||||||||
Convertible Senior Notes Due | Convertible Senior Notes Due | |||||||||||||||||||||||
2012 | 2014 | 2017 | 2012 | 2014 | 2017 | |||||||||||||||||||
Additional paid-in capital | $ | 46 | $ | 97 | $ | 123 | $ | — | $ | 97 | $ | 123 | ||||||||||||
Principal amount | $ | 518 | $ | 575 | $ | 575 | $ | — | $ | 575 | $ | 575 | ||||||||||||
Unamortized debt discount | (66 | ) | (117 | ) | (166 | ) | — | (127 | ) | (174 | ) | |||||||||||||
Net carrying amount | $ | 452 | $ | 458 | $ | 409 | $ | — | $ | 448 | $ | 401 | ||||||||||||
At December 31, | ||||
2008 | ||||
Balance before application of FSP APB 14-1 | $ | 7 | ||
Impact of adoption of FSP APB 14-1 | (31 | ) | ||
Reclassification of dividends toAdditional paid-in capital | 28 | |||
Balance after application of FSP APB 14-1 | $ | 4 | ||
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(dollars in millions, except per share, per ounce and per pound amounts)
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(dollars in millions, except per share, per ounce and per pound amounts)
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2009 | 2008 | 2009 | 2008 | |||||||||||||
Hope Bay | $ | 11 | $ | 9 | $ | 16 | $ | 13 | ||||||||
Boddington | 10 | 1 | 13 | 2 | ||||||||||||
Technical and project services | 7 | 6 | 12 | 10 | ||||||||||||
Nevada underground | 3 | — | 8 | — | ||||||||||||
Corporate | 3 | 4 | 7 | 7 | ||||||||||||
Fort a la Corne JV | — | 6 | 1 | 13 | ||||||||||||
Other | 8 | 13 | 16 | 24 | ||||||||||||
$ | 42 | $ | 39 | $ | 73 | $ | 69 | |||||||||
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(dollars in millions, except per share, per ounce and per pound amounts)
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2009 | 2008 | 2009 | 2008 | |||||||||||||
Boddington acquisition costs (Note 14) | $ | 59 | $ | — | $ | 67 | $ | — | ||||||||
Regional administration | 14 | 12 | 26 | 21 | ||||||||||||
Community development | 11 | 18 | 21 | 32 | ||||||||||||
Workforce reduction | 1 | — | 15 | — | ||||||||||||
Peruvian royalty | 5 | 4 | 11 | 11 | ||||||||||||
Western Australia power plant | 6 | 8 | 9 | 13 | ||||||||||||
Batu Hijau divestiture | 1 | 2 | 6 | 5 | ||||||||||||
World Gold Council dues | 3 | 2 | 6 | 5 | ||||||||||||
Accretion, non-operating (Note 23) | 3 | 3 | 6 | 5 | ||||||||||||
Pension settlement loss (Note 6) | — | — | — | 11 | ||||||||||||
Reclamation estimate revisions (Note 23) | — | 59 | — | 61 | ||||||||||||
Other | 13 | 10 | 25 | 16 | ||||||||||||
$ | 116 | $ | 118 | $ | 192 | $ | 180 | |||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2009 | 2008 | 2009 | 2008 | |||||||||||||
Canadian Oil Sands Trust income | $ | 5 | $ | 31 | $ | 9 | $ | 55 | ||||||||
Interest income | 6 | 7 | 9 | 17 | ||||||||||||
Gain on sale of investments, net | — | 10 | — | 10 | ||||||||||||
Income from development projects, net | — | 9 | — | 9 | ||||||||||||
Foreign currency exchange gain (losses), net | 1 | (7 | ) | (2 | ) | (13 | ) | |||||||||
(Loss) gain on ineffective portion of derivative instruments, net (Note 16) | (3 | ) | (1 | ) | (4 | ) | 2 | |||||||||
Impairment of marketable securities (Note 17) | — | (34 | ) | (6 | ) | (56 | ) | |||||||||
Other | — | 4 | 12 | 10 | ||||||||||||
$ | 9 | $ | 19 | $ | 18 | $ | 34 | |||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2009 | 2008 | 2009 | 2008 | |||||||||||||
Pension benefit costs, net | ||||||||||||||||
Service cost | $ | 4 | $ | 4 | $ | 9 | $ | 8 | ||||||||
Interest cost | 8 | 8 | 16 | 15 | ||||||||||||
Expected return on plan assets | (7 | ) | (7 | ) | (14 | ) | (14 | ) | ||||||||
Amortization of prior service cost | 1 | — | 1 | — | ||||||||||||
Amortization of loss | 4 | 1 | 7 | 2 | ||||||||||||
$ | 10 | $ | 6 | $ | 19 | $ | 11 | |||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2009 | 2008 | 2009 | 2008 | |||||||||||||
Other benefit costs, net | ||||||||||||||||
Service cost | $ | — | $ | 1 | $ | 1 | $ | 1 | ||||||||
Interest cost | 2 | 1 | 3 | 2 | ||||||||||||
Amortization of gain | — | (1 | ) | — | (1 | ) | ||||||||||
$ | 2 | $ | 1 | $ | 4 | $ | 2 | |||||||||
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(dollars in millions, except per share, per ounce and per pound amounts)
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2009 | 2008 | 2009 | 2008 | |||||||||||||
Stock options | $ | 5 | $ | 5 | $ | 8 | $ | 8 | ||||||||
Restricted stock units | 2 | — | 3 | — | ||||||||||||
Deferred stock awards | 5 | 3 | 8 | 5 | ||||||||||||
Restricted stock awards | 1 | 1 | 3 | 3 | ||||||||||||
$ | 13 | $ | 9 | $ | 22 | $ | 16 | |||||||||
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(dollars in millions, except per share, per ounce and per pound amounts)
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2009 | 2008 | 2009 | 2008 | |||||||||||||
Sales — gold, net | $ | 16 | $ | 19 | $ | 32 | $ | 37 | ||||||||
Income from operations | $ | 1 | $ | 7 | $ | 1 | $ | 12 | ||||||||
Loss on impairment | (44 | ) | — | (44 | ) | — | ||||||||||
(Loss) gain on sale of royalty portfolio | — | (2 | ) | — | 5 | |||||||||||
(Loss) gain on sale of Pajingo assets | — | (1 | ) | — | 1 | |||||||||||
Pre-tax (loss) income | (43 | ) | 4 | (43 | ) | 18 | ||||||||||
Income tax benefit (expense) | 29 | (2 | ) | 29 | (8 | ) | ||||||||||
(Loss) income from discontinued operations | $ | (14 | ) | $ | 2 | $ | (14 | ) | $ | 10 | ||||||
At June 30, | At December 31, | |||||||
2009 | 2008 | |||||||
Assets: | ||||||||
Cash | $ | 1 | $ | — | ||||
Accounts receivable | 9 | 9 | ||||||
Inventories | 8 | 12 | ||||||
Stockpiles and ore on leach pads | 13 | 43 | ||||||
Property, plant and mine development | 1 | 4 | ||||||
Deferred income tax assets | 31 | 2 | ||||||
Other assets | 6 | 3 | ||||||
Total assets of operations held for sale | $ | 69 | $ | 73 | ||||
Liabilities: | ||||||||
Current and long-term debt | $ | 2 | $ | 4 | ||||
Accounts payable | — | 1 | ||||||
Employee-related benefits | 9 | 8 | ||||||
Reclamation and remediation liabilities | 17 | 17 | ||||||
Other liabilities | 26 | 6 | ||||||
Total liabilities of operations held for sale | $ | 54 | $ | 36 | ||||
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(dollars in millions, except per share, per ounce and per pound amounts)
Six Months Ended June 30, | ||||||||
2009 | 2008 | |||||||
Net cash provided from (used in) discontinued operations: | ||||||||
(Loss) income from discontinued operations | $ | (14 | ) | $ | 10 | |||
Impairment of assets held for sale | 44 | — | ||||||
Write-down of inventory | 7 | — | ||||||
Amortization | 3 | 4 | ||||||
Deferred income taxes | (29 | ) | (1 | ) | ||||
Other operating adjustments | 1 | 1 | ||||||
Increase (decrease) in net operating liabilities | (4 | ) | (121 | ) | ||||
$ | 8 | $ | (107 | ) | ||||
Net cash used in investing activities of discontinued operations: | ||||||||
Additions to property, plant and mine development | $ | — | $ | (4 | ) | |||
Proceeds from asset sales, net | — | 5 | ||||||
Royalty portfolio sale expenses | — | (11 | ) | |||||
$ | — | $ | (10 | ) | ||||
Net cash used in financing activities of discontinued operations: | ||||||||
Repayment of debt | $ | (2 | ) | $ | (2 | ) | ||
$ | (2 | ) | $ | (2 | ) | |||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2009 | 2008 | 2009 | 2008 | |||||||||||||
Yanacocha | $ | 77 | $ | 48 | $ | 144 | $ | 139 | ||||||||
Batu Hijau | 71 | 19 | 92 | 120 | ||||||||||||
Other | (4 | ) | 1 | (4 | ) | 1 | ||||||||||
$ | 144 | $ | 68 | $ | 232 | $ | 260 | |||||||||
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(dollars in millions, except per share, per ounce and per pound amounts)
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2009 | 2008 | 2009 | 2008 | |||||||||||||
Numerator: | ||||||||||||||||
Net income attributable to Newmont stockholders | ||||||||||||||||
Continuing operations | $ | 171 | $ | 270 | $ | 360 | $ | 627 | ||||||||
Discontinued operations | (9 | ) | 1 | (9 | ) | 9 | ||||||||||
$ | 162 | $ | 271 | $ | 351 | $ | 636 | |||||||||
Denominator: | ||||||||||||||||
Basic | 490 | 454 | 483 | 454 | ||||||||||||
Effect of employee stock-based awards | 1 | 2 | 1 | 3 | ||||||||||||
Diluted | 491 | 456 | 484 | 457 | ||||||||||||
Net income attributable to Newmont stockholders per common share | ||||||||||||||||
Basic: | ||||||||||||||||
Continuing operations | $ | 0.35 | $ | 0.60 | $ | 0.75 | $ | 1.38 | ||||||||
Discontinued operations | (0.02 | ) | — | (0.02 | ) | 0.02 | ||||||||||
$ | 0.33 | $ | 0.60 | $ | 0.73 | $ | 1.40 | |||||||||
Diluted: | ||||||||||||||||
Continuing operations | $ | 0.35 | $ | 0.59 | $ | 0.75 | $ | 1.37 | ||||||||
Discontinued operations | (0.02 | ) | — | (0.02 | ) | 0.02 | ||||||||||
$ | 0.33 | $ | 0.59 | $ | 0.73 | $ | 1.39 | |||||||||
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(dollars in millions, except per share, per ounce and per pound amounts)
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2009 | 2008 | 2009 | 2008 | |||||||||||||
Net income | $ | 306 | $ | 339 | $ | 583 | $ | 896 | ||||||||
Other comprehensive income (loss), net of tax: | ||||||||||||||||
Unrealized gain on marketable equity securities | 99 | 369 | 192 | 404 | ||||||||||||
Foreign currency translation adjustments | 136 | 59 | 89 | (17 | ) | |||||||||||
Change in pension and other benefit liabilities: | ||||||||||||||||
Net amount reclassified to income | 2 | 1 | 3 | 8 | ||||||||||||
Change in fair value of cash flow hedge instruments: | ||||||||||||||||
Net change from periodic revaluations | 105 | 34 | 86 | 51 | ||||||||||||
Net amount reclassified to income | 7 | (5 | ) | 24 | (8 | ) | ||||||||||
Net unrecognized gain on derivatives | 112 | 29 | 110 | 43 | ||||||||||||
349 | 458 | 394 | 438 | |||||||||||||
Comprehensive income | $ | 655 | $ | 797 | $ | 977 | $ | 1,334 | ||||||||
Comprehensive income attributable to: | ||||||||||||||||
Newmont stockholders | $ | 510 | $ | 729 | $ | 744 | $ | 1,074 | ||||||||
Noncontrolling interests | 145 | 68 | 233 | 260 | ||||||||||||
$ | 655 | $ | 797 | $ | 977 | $ | 1,334 | |||||||||
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(dollars in millions, except per share, per ounce and per pound amounts)
Six Months Ended June 30, | ||||||||
2009 | 2008 | |||||||
Common stock: | ||||||||
At beginning of period | $ | 709 | $ | 696 | ||||
Common stock offering | 55 | — | ||||||
Stock based compensation | 2 | 2 | ||||||
Shares issued in exchange for exchangeable shares | 2 | 5 | ||||||
At end of period | 768 | 703 | ||||||
Additional paid-in capital: | ||||||||
At beginning of period | 6,831 | 6,916 | ||||||
Common stock offering | 1,179 | — | ||||||
Convertible debt issuance | 46 | — | ||||||
Common stock dividends | (45 | ) | (91 | ) | ||||
Stock based compensation | 43 | 52 | ||||||
Shares issued in exchange for exchangeable shares | (2 | ) | (6 | ) | ||||
At end of period | 8,052 | 6,871 | ||||||
Accumulated other comprehensive (loss) income: | ||||||||
At beginning of period | (253 | ) | 957 | |||||
Other comprehensive income (Note 12) | 394 | 438 | ||||||
At end of period | 141 | 1,395 | ||||||
Retained earnings: | ||||||||
At beginning of period | 4 | (809 | ) | |||||
Net income attributable to Newmont stockholders | 351 | 636 | ||||||
Common stock dividends | (53 | ) | — | |||||
At end of period | 302 | (173 | ) | |||||
Noncontrolling interests: | ||||||||
At beginning of period | 1,370 | 1,449 | ||||||
Net income attributable to noncontrolling interests | 232 | 260 | ||||||
Dividends paid to noncontrolling interests | (112 | ) | (147 | ) | ||||
Other comprehensive income — minority | 1 | — | ||||||
Acquisition of noncontrolling interest in Miramar Mining Corporation | — | (39 | ) | |||||
Acquisition of noncontrolling interest in EGR | — | 24 | ||||||
At end of period | 1,491 | 1,547 | ||||||
Total stockholders’equity | $ | 10,754 | $ | 10,343 | ||||
Cash | $ | 742 | ||
Cash and/or common shares | 240 | |||
Contingent consideration (fair value) | 62 | |||
$ | 1,044 | |||
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(dollars in millions, except per share, per ounce and per pound amounts)
Assets: | ||||
Cash | $ | 1 | ||
Property, plant and mine development, net | 1,073 | |||
Inventories and stockpiles | 7 | |||
Deferred income tax asset | 28 | |||
Other assets | 11 | |||
$ | 1,120 | |||
Liabilities: | ||||
Accrued liabilities | $ | 33 | ||
Reclamation liabilities | 15 | |||
Deferred income tax liability | 28 | |||
76 | ||||
Net assets acquired | $ | 1,044 | ||
Level 1 | Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; | ||
Level 2 | Quoted prices in markets that are not active, or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability; and | ||
Level 3 | Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (supported by little or no market activity). |
16
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(dollars in millions, except per share, per ounce and per pound amounts)
Fair Value at June 30, 2009 | ||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | |||||||||||||
Assets: | ||||||||||||||||
Cash equivalents | $ | 64 | $ | 64 | $ | — | $ | — | ||||||||
Marketable equity securities | 867 | 867 | — | — | ||||||||||||
Corporate marketable debt securities | 9 | 9 | — | — | ||||||||||||
Other marketable debt securities: | ||||||||||||||||
Asset backed commercial paper | 17 | — | — | 17 | ||||||||||||
Auction rate securities | 4 | — | — | 4 | ||||||||||||
Trade receivable from provisional copper and gold concentrate sales, net | 209 | 209 | — | — | ||||||||||||
Derivative instruments, net | 62 | — | 62 | — | ||||||||||||
$ | 1,232 | $ | 1,149 | $ | 62 | $ | 21 | |||||||||
Liabilities: | ||||||||||||||||
8 5/8% debentures (hedged portion) | $ | 96 | $ | — | $ | 96 | $ | — | ||||||||
Boddington contingent consideration | 62 | — | — | 62 | ||||||||||||
$ | 158 | $ | — | $ | 96 | $ | 62 | |||||||||
17
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(dollars in millions, except per share, per ounce and per pound amounts)
Boddington | ||||||||||||||||
Auction Rate | Asset Backed | Contingent | ||||||||||||||
Securities | Commercial Paper | Consideration | Total | |||||||||||||
Balance at beginning of period | $ | 4 | $ | 23 | $ | — | $ | 27 | ||||||||
Unrealized losses | — | (2 | ) | — | (2 | ) | ||||||||||
Settlements | — | (4 | ) | — | (4 | ) | ||||||||||
Transfers in | — | — | 62 | 62 | ||||||||||||
Balance at end of period | $ | 4 | $ | 17 | $ | 62 | $ | 83 | ||||||||
Fair Value at June 30, 2009 | Total | |||||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | Losses | ||||||||||||||||
Long-lived assets held for sale (Note 9) | $ | 39 | $ | — | $ | 39 | $ | — | $ | 44 | ||||||||||
18
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(dollars in millions, except per share, per ounce and per pound amounts)
19
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(dollars in millions, except per share, per ounce and per pound amounts)
Total/ | ||||||||||||||||||||
2009 | 2010 | 2011 | 2012 | Average | ||||||||||||||||
IDR Forward Purchase Contracts: | ||||||||||||||||||||
$ (millions) | $ | 26 | $ | — | $ | — | $ | — | $ | 26 | ||||||||||
Average rate (IDR/$) | 10,717 | — | — | — | 10,717 | |||||||||||||||
IDR notional (millions) | 278,644 | — | — | — | 278,644 | |||||||||||||||
A$ Operating Forward Purchase Contracts: | ||||||||||||||||||||
$ (millions) | $ | 223 | $ | 413 | $ | 200 | $ | 24 | $ | 860 | ||||||||||
Average rate ($/A$) | 0.77 | 0.75 | 0.70 | 0.68 | 0.74 | |||||||||||||||
A$ notional (millions) | 290 | 550 | 284 | 36 | 1,160 | |||||||||||||||
NZ$ Operating Forward Purchase Contracts: | ||||||||||||||||||||
$ (millions) | $ | 20 | $ | 19 | $ | 1 | $ | — | $ | 40 | ||||||||||
Average rate ($/NZ$) | 0.63 | 0.59 | 0.54 | — | 0.61 | |||||||||||||||
NZ$ notional (millions) | 32 | 32 | 3 | — | 67 | |||||||||||||||
A$ Boddington Capital Forward Purchase Contracts: | ||||||||||||||||||||
$ (millions) | $ | 156 | $ | — | $ | — | $ | — | $ | 156 | ||||||||||
Average rate ($/A$) | 0.79 | — | — | — | 0.79 | |||||||||||||||
A$ notional (millions) | 197 | — | — | — | 197 |
Expected Maturity Date | ||||||||||||||||
Total/ | ||||||||||||||||
2009 | 2010 | 2011 | Average | |||||||||||||
Diesel Forward Purchase Contracts: | ||||||||||||||||
$(millions) | $ | 22 | $ | 19 | $ | 4 | $ | 45 | ||||||||
Average rate ($/gallon) | 1.90 | 1.84 | 2.00 | 1.88 | ||||||||||||
Diesel gallons (millions) | 12 | 10 | 2 | 24 |
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(dollars in millions, except per share, per ounce and per pound amounts)
Fair Values of Derivative Instruments | ||||||||||||||||
At June 30, 2009 | ||||||||||||||||
Other | Other | Other | Other | |||||||||||||
Current | Long-Term | Current | Long-Term | |||||||||||||
Assets | Assets | Liabilities | Liabilities | |||||||||||||
Foreign currency exchange contracts: | ||||||||||||||||
IDR operating forward purchase contracts | $ | 1 | $ | — | $ | — | $ | — | ||||||||
NZ$ operating forward contracts | 2 | 1 | 1 | — | ||||||||||||
A$ forward purchase contracts | 26 | 28 | 2 | 2 | ||||||||||||
Diesel forward contracts | 3 | 1 | 2 | — | ||||||||||||
Interest rate swap contracts | 2 | 5 | — | — | ||||||||||||
Total derivative instruments (Notes 20 and 22) | $ | 34 | $ | 35 | $ | 5 | $ | 2 | ||||||||
Fair Values of Derivative Instruments | ||||||||||||||||
At December 31, 2008 | ||||||||||||||||
Other | Other | Other | Other | |||||||||||||
Current | Long-Term | Current | Long-Term | |||||||||||||
Assets | Assets | Liabilities | Liabilities | |||||||||||||
Foreign currency exchange contracts: | ||||||||||||||||
IDR operating forward purchase contracts | $ | — | $ | — | $ | 4 | $ | — | ||||||||
NZ$ operating forward contracts | — | — | 5 | 1 | ||||||||||||
A$ forward purchase contracts | 3 | 1 | 87 | 42 | ||||||||||||
A$ call option contracts | 1 | — | — | — | ||||||||||||
Diesel forward contracts | — | — | 15 | — | ||||||||||||
Interest rate swap contracts | 2 | 7 | — | — | ||||||||||||
Total derivative instruments (Notes 20 and 22) | $ | 6 | $ | 8 | $ | 111 | $ | 43 | ||||||||
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(dollars in millions, except per share, per ounce and per pound amounts)
Foreign Currency | ||||||||||||||||
Exchange Contracts | Diesel Forward Contracts | |||||||||||||||
2009 | 2008 | 2009 | 2008 | |||||||||||||
For the three months ended June 30, | ||||||||||||||||
Cash flow hedging relationships: | ||||||||||||||||
Gain recognized in other comprehensive income (effective portion) | $ | 142 | $ | 48 | $ | 7 | $ | 2 | ||||||||
(Loss) gain reclassified from Accumulated other comprehensive income into income (effective portion)(1) | (9 | ) | 4 | (4 | ) | — | ||||||||||
$ | 133 | $ | 52 | $ | 3 | $ | 2 | |||||||||
For the six months ended June 30, | ||||||||||||||||
Gain recognized in other comprehensive income (effective portion) | $ | 118 | $ | 74 | $ | 4 | $ | 2 | ||||||||
(Loss) gain reclassified from Accumulated other comprehensive income into income (effective portion)(1) | (30 | ) | 6 | (11 | ) | — | ||||||||||
$ | 88 | $ | 80 | $ | (7 | ) | $ | 2 | ||||||||
(1) | The (loss) gain for the effective portion of cash flow hedges reclassified fromAccumulated other comprehensive income (loss)is recorded inCosts applicable to sales. |
Interest Rate | 8 5/8% Debentures | |||||||||||||||
Swap Contracts | (Hedged Portion) | |||||||||||||||
2009 | 2008 | 2009 | 2008 | |||||||||||||
For the three months ended June 30, | ||||||||||||||||
Fair value hedging relationships: | ||||||||||||||||
Gain (loss) recognized in income (effective portion)(1) | $ | 1 | $ | 1 | $ | — | $ | (1 | ) | |||||||
(Loss) gain recognized in income (ineffective portion)(2) | (1 | ) | (3 | ) | (2 | ) | 2 | |||||||||
$ | — | $ | (2 | ) | $ | (2 | ) | $ | 1 | |||||||
For the six months ended June 30, | ||||||||||||||||
Fair value hedging relationships: | ||||||||||||||||
Gain (loss) recognized in income (effective portion)(1) | $ | 2 | $ | 1 | $ | (1 | ) | $ | (1 | ) | ||||||
(Loss) gain recognized in income (ineffective portion)(2) | (1 | ) | — | (3 | ) | 2 | ||||||||||
$ | 1 | $ | 1 | $ | (4 | ) | $ | 1 | ||||||||
(1) | The gain (loss) recognized for the effective portion of fair value hedges and the underlying hedged debt is included inInterest expense, net. | |
(2) | The ineffective portion recognized for fair value hedges and the underlying hedged debt is included inOther income, net. |
22
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(dollars in millions, except per share, per ounce and per pound amounts)
At June 30, 2009 | ||||||||||||||||
Cost/Equity | Unrealized | Fair/Equity | ||||||||||||||
Basis | Gain | Loss | Basis | |||||||||||||
Current: | ||||||||||||||||
Marketable Equity Securities | $ | 9 | $ | 10 | $ | — | $ | 19 | ||||||||
Long-term: | ||||||||||||||||
Marketable Debt Securities: | ||||||||||||||||
Asset backed securities | 27 | — | (10 | ) | 17 | |||||||||||
Auction rate securities | $ | 7 | $ | — | $ | (3 | ) | $ | 4 | |||||||
Other | 8 | 1 | — | 9 | ||||||||||||
42 | 1 | (13 | ) | 30 | ||||||||||||
Marketable Equity Securities: | ||||||||||||||||
Canadian Oil Sands Trust | 266 | 477 | — | 743 | ||||||||||||
Gabriel Resources Ltd. | 68 | 18 | — | 86 | ||||||||||||
Shore Gold Inc. | 4 | 3 | — | 7 | ||||||||||||
Other | 9 | 3 | — | 12 | ||||||||||||
347 | 501 | — | 848 | |||||||||||||
Other investments, at cost | 7 | — | — | 7 | ||||||||||||
Investment in Affiliates: | ||||||||||||||||
AGR Matthey Joint Venture | 17 | — | — | 17 | ||||||||||||
$ | 413 | $ | 502 | $ | (13 | ) | $ | 902 | ||||||||
At December 31, 2008 | ||||||||||||||||
Cost/Equity | Unrealized | Fair/Equity | ||||||||||||||
Basis | Gain | Loss | Basis | |||||||||||||
Current: | ||||||||||||||||
Marketable Equity Securities | $ | 14 | $ | 1 | $ | (3 | ) | $ | 12 | |||||||
Long-term: | ||||||||||||||||
Marketable Debt Securities: | ||||||||||||||||
Asset backed securities | $ | 25 | $ | — | $ | (3 | ) | $ | 22 | |||||||
Auction rate securities | 7 | — | (2 | ) | 5 | |||||||||||
32 | — | (5 | ) | 27 | ||||||||||||
Marketable Equity Securities: | ||||||||||||||||
Canadian Oil Sands Trust | 251 | 283 | — | 534 | ||||||||||||
Gabriel Resources Ltd. | 64 | — | — | 64 | ||||||||||||
Shore Gold Inc. | 6 | — | — | 6 | ||||||||||||
Other | 8 | — | (3 | ) | 5 | |||||||||||
329 | 283 | (3 | ) | 609 | ||||||||||||
Other investments, at cost | 7 | — | — | 7 | ||||||||||||
Investment in Affiliates: | ||||||||||||||||
AGR Matthey Joint Venture | 12 | — | — | 12 | ||||||||||||
$ | 380 | $ | 283 | $ | (8 | ) | $ | 655 | ||||||||
23
Table of Contents
(dollars in millions, except per share, per ounce and per pound amounts)
Less than 12 Months | 12 Months or Greater | Total | ||||||||||||||||||||||
Unrealized | Unrealized | Unrealized | ||||||||||||||||||||||
At June 30, 2009 | Fair Value | Losses | Fair Value | Losses | Fair Value | Losses | ||||||||||||||||||
Asset backed securities | $ | 17 | $ | 10 | $ | — | $ | — | $ | 17 | $ | 10 | ||||||||||||
Auction rate securities | — | — | 4 | 3 | 4 | 3 | ||||||||||||||||||
$ | 17 | $ | 10 | $ | 4 | $ | 3 | $ | 21 | $ | 13 | |||||||||||||
Less than 12 Months | 12 Months or Greater | Total | ||||||||||||||||||||||
Unrealized | Unrealized | Unrealized | ||||||||||||||||||||||
At December 31, 2008 | Fair Value | Losses | Fair Value | Losses | Fair Value | Losses | ||||||||||||||||||
Marketable equity securities | $ | 6 | $ | 6 | $ | — | $ | — | $ | 6 | $ | 6 | ||||||||||||
Asset backed securities | 22 | 3 | — | — | 22 | 3 | ||||||||||||||||||
Auction rate securities | — | — | 5 | 2 | 5 | 2 | ||||||||||||||||||
$ | 28 | $ | 9 | $ | 5 | $ | 2 | $ | 33 | $ | 11 | |||||||||||||
At June 30, | At December 31, | |||||||
2009 | 2008 | |||||||
In-process | $ | 69 | $ | 53 | ||||
Concentrate | 13 | 54 | ||||||
Precious metals | 22 | 20 | ||||||
Materials, supplies and other | 377 | 380 | ||||||
$ | 481 | $ | 507 | |||||
At June 30, | At December 31, | |||||||
2009 | 2008 | |||||||
Current: | ||||||||
Stockpiles | $ | 148 | $ | 117 | ||||
Ore on leach pads | 170 | 173 | ||||||
$ | 318 | $ | 290 | |||||
Long-term: | ||||||||
Stockpiles | $ | 1,041 | $ | 872 | ||||
Ore on leach pads | 285 | 264 | ||||||
$ | 1,326 | $ | 1,136 | |||||
24
Table of Contents
(dollars in millions, except per share, per ounce and per pound amounts)
At June 30, | At December 31, | |||||||
2009 | 2008 | |||||||
Other current assets: | ||||||||
Refinery metal inventory and receivable | $ | 234 | $ | 168 | ||||
Other prepaid assets | 71 | 43 | ||||||
Derivative instruments (Note 16) | 34 | 6 | ||||||
Notes receivable | 10 | 8 | ||||||
Prepaid income and mining taxes | 8 | 187 | ||||||
Other | 38 | 43 | ||||||
$ | 395 | $ | 455 | |||||
Other long-term assets: | ||||||||
Debt issuance costs | $ | 37 | $ | 29 | ||||
Derivative instruments (Note 16) | 35 | 8 | ||||||
Restricted cash | 28 | 33 | ||||||
Prepaid royalties | 19 | 19 | ||||||
Corporate-owned life insurance | 16 | 26 | ||||||
Other receivables | 16 | 17 | ||||||
Prepaid maintenance costs | 6 | 13 | ||||||
Other | 61 | 62 | ||||||
$ | 218 | $ | 207 | |||||
At June 30, 2009 | At December 31, 2008 | |||||||||||||||
Current | Non-Current | Current | Non-Current | |||||||||||||
Sale-leaseback of refractory ore treatment plant | $ | 24 | $ | 164 | $ | 24 | $ | 188 | ||||||||
8 5/8% debentures, net of discount (due 2011) | — | 218 | — | 214 | ||||||||||||
Corporate revolving credit facility (due 2012) | — | 100 | — | 757 | ||||||||||||
2012 convertible senior notes | — | 452 | — | — | ||||||||||||
2014 convertible senior notes | — | 458 | — | 448 | ||||||||||||
2017 convertible senior notes | — | 409 | — | 401 | ||||||||||||
5 7/8% notes, net of discount (due 2035) | — | 597 | — | 597 | ||||||||||||
PTNNT project financing facility | 87 | 176 | 87 | 219 | ||||||||||||
PTNNT shareholder loans | 72 | — | 18 | — | ||||||||||||
Yanacocha credit facility | 14 | 55 | 14 | 62 | ||||||||||||
Yanacocha bonds | — | 100 | — | 100 | ||||||||||||
Ahafo project facility | 10 | 70 | 9 | 66 | ||||||||||||
Other project financings and capital leases | 14 | 11 | 13 | 20 | ||||||||||||
$ | 221 | $ | 2,810 | $ | 165 | $ | 3,072 | |||||||||
25
Table of Contents
(dollars in millions, except per share, per ounce and per pound amounts)
At June 30, | At December 31, | |||||||
2009 | 2008 | |||||||
Other current liabilities: | ||||||||
Boddington acquisition costs (Note 14) | $ | 299 | $ | — | ||||
Refinery metal payable | 234 | 168 | ||||||
Accrued capital expenditures | 200 | 107 | ||||||
Accrued operating costs | 129 | 137 | ||||||
Reclamation and remediation costs (Note 23) | 55 | 58 | ||||||
Royalties | 42 | 28 | ||||||
Interest | 41 | 35 | ||||||
Peruvian royalty | 11 | 18 | ||||||
Deferred income tax | 7 | 8 | ||||||
Derivative instruments (Note 16) | 5 | 111 | ||||||
Taxes other than income and mining | 5 | 39 | ||||||
Other | 43 | 61 | ||||||
$ | 1,071 | $ | 770 | |||||
Other long-term liabilities: | ||||||||
Income and mining taxes | $ | 173 | $ | 167 | ||||
Boddington contingent consideration | 62 | — | ||||||
Derivative instruments (Note 16) | 2 | 43 | ||||||
Other | 40 | 42 | ||||||
$ | 277 | $ | 252 | |||||
Six Months Ended June 30, | ||||||||
2009 | 2008 | |||||||
Balance at beginning of period | $ | 758 | $ | 672 | ||||
Additions, changes in estimates and other | 2 | 59 | ||||||
Acquisition of liability | 15 | — | ||||||
Liabilities settled | (22 | ) | (31 | ) | ||||
Accretion expense | 23 | 20 | ||||||
Balance at end of period | $ | 776 | $ | 720 | ||||
26
Table of Contents
(dollars in millions, except per share, per ounce and per pound amounts)
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2009 | 2008 | 2009 | 2008 | |||||||||||||
Asset retirement cost amortization | $ | 7 | $ | 5 | $ | 14 | $ | 11 | ||||||||
Accretion — operating | 8 | 8 | 17 | 16 | ||||||||||||
Accretion — non-operating (Note 4) | 3 | 3 | 6 | 5 | ||||||||||||
Reclamation estimate revisions — non-operating (Note 4) | — | 59 | — | 61 | ||||||||||||
$ | 18 | $ | 75 | $ | 37 | $ | 93 | |||||||||
Six Months Ended June 30, | ||||||||
2009 | 2008 | |||||||
Decrease (increase) in operating assets: | ||||||||
Trade and accounts receivable | $ | 68 | $ | (30 | ) | |||
Inventories, stockpiles and ore on leach pads | (155 | ) | (93 | ) | ||||
EGR refinery assets | (70 | ) | (13 | ) | ||||
Other assets | 5 | (17 | ) | |||||
(Decrease) increase in operating liabilities: | ||||||||
Accounts payable and other accrued liabilities | (73 | ) | (88 | ) | ||||
EGR refinery liabilities | 70 | 13 | ||||||
Reclamation liabilities (Note 23) | (22 | ) | (31 | ) | ||||
$ | (177 | ) | $ | (259 | ) | |||
27
Table of Contents
(dollars in millions, except per share, per ounce and per pound amounts)
Costs | Advanced | |||||||||||||||||||||
Applicable to | Projects and | Pre-Tax | ||||||||||||||||||||
Three Months Ended June, 2009 | Sales | Sales | Amortization | Exploration | Income | |||||||||||||||||
Nevada | $ | 372 | $ | 228 | $ | 53 | $ | 13 | $ | 70 | ||||||||||||
Hope Bay | — | — | 3 | 22 | (23 | ) | ||||||||||||||||
La Herradura | 29 | 12 | 3 | 1 | 11 | |||||||||||||||||
Other North America | — | — | — | — | (1 | ) | ||||||||||||||||
North America | 401 | 240 | 59 | 36 | 57 | |||||||||||||||||
Yanacocha | 489 | 173 | 44 | 6 | 244 | |||||||||||||||||
Other South America | — | — | — | 8 | (7 | ) | ||||||||||||||||
South America | 489 | 173 | 44 | 14 | 237 | |||||||||||||||||
Boddington | — | — | — | 12 | (69 | ) | ||||||||||||||||
Other Australia/New Zealand | 263 | 141 | 30 | 6 | 89 | |||||||||||||||||
Batu Hijau: | ||||||||||||||||||||||
Gold | 98 | 24 | 6 | |||||||||||||||||||
Copper | 229 | 61 | 16 | |||||||||||||||||||
Total Batu Hijau | 327 | 85 | 22 | — | 204 | |||||||||||||||||
Other Asia Pacific | — | — | — | 3 | (7 | ) | ||||||||||||||||
Asia Pacific | 590 | 226 | 52 | 21 | 217 | |||||||||||||||||
Africa | 122 | 57 | 16 | 6 | 38 | |||||||||||||||||
Corporate and Other | — | — | 5 | 16 | (90 | ) | ||||||||||||||||
Consolidated | $ | 1,602 | $ | 696 | $ | 176 | $ | 93 | $ | 459 | ||||||||||||
28
Table of Contents
(dollars in millions, except per share, per ounce and per pound amounts)
Costs | Advanced | |||||||||||||||||||||
Applicable to | Projects and | Pre-Tax | ||||||||||||||||||||
Three Months Ended June 30, 2008 | Sales | Sales | Amortization | Exploration | Income | |||||||||||||||||
Nevada | $ | 495 | $ | 238 | $ | 60 | $ | 12 | $ | 177 | ||||||||||||
Hope Bay | — | — | — | 16 | (17 | ) | ||||||||||||||||
La Herradura | 21 | 11 | 2 | 1 | 8 | |||||||||||||||||
Other North America | — | — | — | 8 | (10 | ) | ||||||||||||||||
North America | 516 | 249 | 62 | 37 | 158 | |||||||||||||||||
Yanacocha | 388 | 161 | 44 | 7 | 152 | |||||||||||||||||
Other South America | — | — | — | 10 | (9 | ) | ||||||||||||||||
South America | 388 | 161 | 44 | 17 | 143 | |||||||||||||||||
Boddington | — | — | — | 2 | 6 | |||||||||||||||||
Other Australia/New Zealand | 272 | 170 | 31 | 7 | 58 | |||||||||||||||||
Batu Hijau: | ||||||||||||||||||||||
Gold | 36 | 19 | 3 | |||||||||||||||||||
Copper | 183 | 104 | 20 | |||||||||||||||||||
Total Batu Hijau | 219 | 123 | 23 | — | 54 | |||||||||||||||||
Other Asia Pacific | — | — | 1 | 4 | (57 | ) | ||||||||||||||||
Asia Pacific | 491 | 293 | 55 | 13 | 61 | |||||||||||||||||
Africa | 107 | 46 | 18 | 13 | 37 | |||||||||||||||||
Corporate and Other | 1 | — | 4 | 17 | (104 | ) | ||||||||||||||||
Consolidated | $ | 1,503 | $ | 749 | $ | 183 | $ | 97 | $ | 295 | ||||||||||||
29
Table of Contents
(dollars in millions, except per share, per ounce and per pound amounts)
Costs | Advanced | ||||||||||||||||||||||||||||||||
Applicable to | Projects and | Pre-Tax | Total | Capital | |||||||||||||||||||||||||||||
Six Months Ended June 30, 2009 | Sales | Sales | Amortization | Exploration | Income | Assets(1) | Expenditures(2) | ||||||||||||||||||||||||||
Nevada | $ | 840 | $ | 491 | $ | 114 | $ | 27 | $ | 191 | $ | 3,232 | $ | 111 | |||||||||||||||||||
Hope Bay | — | — | 6 | 36 | (40 | ) | 1,706 | 3 | |||||||||||||||||||||||||
La Herradura | 52 | 22 | 5 | 1 | 24 | 106 | 19 | ||||||||||||||||||||||||||
Other North America | — | — | — | 1 | (4 | ) | 52 | — | |||||||||||||||||||||||||
North America | 892 | 513 | 125 | 65 | 171 | 5,096 | 133 | ||||||||||||||||||||||||||
Yanacocha | 916 | 325 | 85 | 10 | 448 | 1,918 | 62 | ||||||||||||||||||||||||||
Other South America | — | — | — | 14 | (11 | ) | 29 | — | |||||||||||||||||||||||||
South America | 916 | 325 | 85 | 24 | 437 | 1,947 | 62 | ||||||||||||||||||||||||||
Boddington | — | — | — | 17 | (76 | ) | 3,490 | 684 | |||||||||||||||||||||||||
Other Australia/New Zealand | 532 | 286 | 62 | 12 | 166 | 837 | 47 | ||||||||||||||||||||||||||
Batu Hijau: | |||||||||||||||||||||||||||||||||
Gold | 157 | 51 | 13 | ||||||||||||||||||||||||||||||
Copper | 390 | 146 | 37 | ||||||||||||||||||||||||||||||
Total Batu Hijau | 547 | 197 | 50 | — | 268 | 2,604 | 23 | ||||||||||||||||||||||||||
Other Asia Pacific | — | — | 1 | 5 | (15 | ) | 142 | 1 | |||||||||||||||||||||||||
Asia Pacific | 1,079 | 483 | 113 | 34 | 343 | 7,073 | 755 | ||||||||||||||||||||||||||
Africa | 251 | 114 | 34 | 12 | 84 | 1,167 | 24 | ||||||||||||||||||||||||||
Corporate and Other(1) | — | — | 10 | 30 | (189 | ) | 2,828 | 8 | |||||||||||||||||||||||||
Consolidated | $ | 3,138 | $ | 1,435 | $ | 367 | $ | 165 | $ | 846 | $ | 18,111 | $ | 982 | |||||||||||||||||||
(1) | Corporate and Other includes $69 of Assets held for sale (Note 9). | |
(2) | Accrual basis includes increase in accrued capital of $72. Consolidated capital expenditures on a cash basis are $910. |
30
Table of Contents
(dollars in millions, except per share, per ounce and per pound amounts)
Costs | Advanced | ||||||||||||||||||||||||||||||||
Applicable to | Projects and | Pre-Tax | Total | Capital | |||||||||||||||||||||||||||||
Six Months Ended June 30, 2008 | Sales | Sales | Amortization | Exploration | Income | Assets(1) | Expenditures(2) | ||||||||||||||||||||||||||
Nevada | $ | 986 | $ | 453 | $ | 110 | $ | 22 | $ | 386 | $ | 3,220 | $ | 140 | |||||||||||||||||||
Hope Bay | — | — | — | 22 | (22 | ) | 1,877 | 30 | |||||||||||||||||||||||||
La Herradura | 45 | 18 | 4 | 2 | 21 | 84 | 12 | ||||||||||||||||||||||||||
Other North America | — | — | — | 15 | (18 | ) | 203 | — | |||||||||||||||||||||||||
North America | 1,031 | 471 | 114 | 61 | 367 | 5,384 | 182 | ||||||||||||||||||||||||||
Yanacocha | 887 | 329 | 88 | 13 | 414 | 2,132 | 81 | ||||||||||||||||||||||||||
Other South America | — | — | — | 17 | (16 | ) | 17 | — | |||||||||||||||||||||||||
South America | 887 | 329 | 88 | 30 | 398 | 2,149 | 81 | ||||||||||||||||||||||||||
Boddington | — | — | — | 5 | (1 | ) | 1,371 | 392 | |||||||||||||||||||||||||
Other Australia/New Zealand | 542 | 326 | 56 | 12 | 137 | 845 | 64 | ||||||||||||||||||||||||||
Batu Hijau: | |||||||||||||||||||||||||||||||||
Gold | 148 | 56 | 11 | ||||||||||||||||||||||||||||||
Copper | 615 | 254 | 51 | ||||||||||||||||||||||||||||||
Total Batu Hijau | 763 | 310 | 62 | — | 358 | 2,337 | 54 | ||||||||||||||||||||||||||
Other Asia Pacific | — | — | 2 | 7 | (63 | ) | 184 | — | |||||||||||||||||||||||||
�� | |||||||||||||||||||||||||||||||||
Asia Pacific | 1,305 | 636 | 120 | 24 | 431 | 4,737 | 510 | ||||||||||||||||||||||||||
Africa | 204 | 95 | 31 | 21 | 61 | 1,146 | 61 | ||||||||||||||||||||||||||
Corporate and Other(1) | 1 | — | 9 | 30 | (179 | ) | 3,709 | 6 | |||||||||||||||||||||||||
Consolidated | $ | 3,428 | $ | 1,531 | $ | 362 | $ | 166 | $ | 1,078 | $ | 17,125 | $ | 840 | |||||||||||||||||||
(1) | Corporate and Other includes $100 of Assets held for sale. | |
(2) | Accrual basis includes decrease in accrued capital of $53. Consolidated capital expenditures on a cash basis are $893. |
At June 30, | At December 31, | |||||||
2009 | 2008 | |||||||
Goodwill: | ||||||||
Other Australia/New Zealand | $ | 188 | $ | 188 |
31
Table of Contents
(dollars in millions, except per share, per ounce and per pound amounts)
Three Months Ended June 30, 2009 | ||||||||||||||||||||
Newmont | ||||||||||||||||||||
Newmont | Mining | |||||||||||||||||||
Mining | Newmont | Other | Corporation | |||||||||||||||||
Consolidating Statement of Income | Corporation | USA | Subsidiaries | Eliminations | Consolidated | |||||||||||||||
Revenues | ||||||||||||||||||||
Sales — gold, net | $ | — | $ | 988 | $ | 385 | $ | — | $ | 1,373 | ||||||||||
Sales — copper, net | — | 229 | — | — | 229 | |||||||||||||||
— | 1,217 | 385 | — | 1,602 | ||||||||||||||||
Costs and expenses | ||||||||||||||||||||
Costs applicable to sales — gold(1) | — | 438 | 203 | (6 | ) | 635 | ||||||||||||||
Costs applicable to sales — copper(1) | — | 61 | — | — | 61 | |||||||||||||||
Amortization | — | 125 | 51 | — | 176 | |||||||||||||||
Accretion | — | 6 | 2 | — | 8 | |||||||||||||||
Exploration | — | 26 | 25 | — | 51 | |||||||||||||||
Advanced projects, research and development | — | 17 | 26 | (1 | ) | 42 | ||||||||||||||
General and administrative | — | 33 | — | 7 | 40 | |||||||||||||||
Other | 8 | 28 | 80 | — | 116 | |||||||||||||||
8 | 734 | 387 | — | 1,129 | ||||||||||||||||
Other income (expense) | ||||||||||||||||||||
Other income, net | (6 | ) | (6 | ) | 21 | — | 9 | |||||||||||||
Interest income — intercompany | 28 | 2 | 1 | (31 | ) | — | ||||||||||||||
Interest expense — intercompany | (3 | ) | — | (28 | ) | 31 | — | |||||||||||||
Interest expense, net | (9 | ) | (12 | ) | (2 | ) | — | (23 | ) | |||||||||||
10 | (16 | ) | (8 | ) | — | (14 | ) | |||||||||||||
Income (loss) from continuing operations before income tax expense and other items | 2 | 467 | (10 | ) | — | 459 | ||||||||||||||
Income tax expense | (3 | ) | (160 | ) | 27 | — | (136 | ) | ||||||||||||
Equity income (loss) of affiliates | 177 | 2 | 28 | (210 | ) | (3 | ) | |||||||||||||
Income (loss) from continuing operations | 176 | 309 | 45 | (210 | ) | 320 | ||||||||||||||
Income (loss) from discontinued operations | (14 | ) | (14 | ) | — | 14 | (14 | ) | ||||||||||||
Net income (loss) | 162 | 295 | 45 | (196 | ) | 306 | ||||||||||||||
Less: Net income (loss) attributable to noncontrolling interests | — | 144 | 15 | (15 | ) | 144 | ||||||||||||||
Net income (loss) attributable to Newmont stockholders | $ | 162 | $ | 151 | $ | 30 | $ | (181 | ) | $ | 162 | |||||||||
(1) | Exclusive of Amortization and Accretion. |
32
Table of Contents
(dollars in millions, except per share, per ounce and per pound amounts)
Three Months Ended June 30, 2008 | ||||||||||||||||||||
Newmont | ||||||||||||||||||||
Newmont | Mining | |||||||||||||||||||
Mining | Newmont | Other | Corporation | |||||||||||||||||
Consolidating Statement of Income | Corporation | USA | Subsidiaries | Eliminations | Consolidated | |||||||||||||||
Revenues | ||||||||||||||||||||
Sales — gold, net | $ | — | $ | 941 | $ | 379 | $ | — | $ | 1,320 | ||||||||||
Sales — copper, net | — | 183 | — | — | 183 | |||||||||||||||
— | 1,124 | 379 | — | 1,503 | ||||||||||||||||
Costs and expenses | ||||||||||||||||||||
Costs applicable to sales — gold(1) | — | 429 | 222 | (6 | ) | 645 | ||||||||||||||
Costs applicable to sales — copper(1) | — | 104 | — | — | 104 | |||||||||||||||
Amortization | — | 135 | 49 | (1 | ) | 183 | ||||||||||||||
Accretion | — | 6 | 2 | — | 8 | |||||||||||||||
Exploration | — | 33 | 25 | — | 58 | |||||||||||||||
Advanced projects, research and development | — | 13 | 26 | — | 39 | |||||||||||||||
General and administrative | — | 30 | 1 | 6 | 37 | |||||||||||||||
Other | — | 63 | 54 | 1 | 118 | |||||||||||||||
— | 813 | 379 | — | 1,192 | ||||||||||||||||
Other income (expense) | ||||||||||||||||||||
Other income, net | 4 | 5 | 10 | — | 19 | |||||||||||||||
Interest income — intercompany | 76 | 3 | — | (79 | ) | — | ||||||||||||||
Interest expense — intercompany | (2 | ) | — | (77 | ) | 79 | — | |||||||||||||
Interest expense, net | (18 | ) | (15 | ) | (2 | ) | — | (35 | ) | |||||||||||
60 | (7 | ) | (69 | ) | — | (16 | ) | |||||||||||||
Income (loss) from continuing operations before income tax expense and other items | 60 | 304 | (69 | ) | — | 295 | ||||||||||||||
Income tax (expense) benefit | (46 | ) | 70 | 18 | — | 42 | ||||||||||||||
Equity income (loss) of affiliates | 255 | — | 33 | (288 | ) | — | ||||||||||||||
Income (loss) from continuing operations | 269 | 374 | (18 | ) | (288 | ) | 337 | |||||||||||||
Income (loss) from discontinued operations | 2 | 4 | (1 | ) | (3 | ) | 2 | |||||||||||||
Net income (loss) | 271 | 378 | (19 | ) | (291 | ) | 339 | |||||||||||||
Less: Net income (loss) attributable to noncontrolling interests | — | 75 | (7 | ) | — | 68 | ||||||||||||||
Net income (loss) attributable to Newmont stockholders | $ | 271 | $ | 303 | $ | (12 | ) | $ | (291 | ) | $ | 271 | ||||||||
(1) | Exclusive of Amortization and Accretion. |
33
Table of Contents
(dollars in millions, except per share, per ounce and per pound amounts)
Six Months Ended June 30, 2009 | ||||||||||||||||||||
Newmont | ||||||||||||||||||||
Newmont | Mining | |||||||||||||||||||
Mining | Newmont | Other | Corporation | |||||||||||||||||
Consolidating Statement of Income | Corporation | USA | Subsidiaries | Eliminations | Consolidated | |||||||||||||||
Revenues | ||||||||||||||||||||
Sales — gold, net | $ | — | $ | 1,965 | $ | 783 | $ | — | $ | 2,748 | ||||||||||
Sales — copper, net | — | 390 | — | — | 390 | |||||||||||||||
— | 2,355 | 783 | — | 3,138 | ||||||||||||||||
Costs and expenses | ||||||||||||||||||||
Costs applicable to sales — gold(1) | — | 890 | 411 | (12 | ) | 1,289 | ||||||||||||||
Costs applicable to sales — copper(1) | — | 146 | — | — | 146 | |||||||||||||||
Amortization | — | 262 | 105 | — | 367 | |||||||||||||||
Accretion | — | 13 | 4 | — | 17 | |||||||||||||||
Exploration | — | 48 | 44 | — | 92 | |||||||||||||||
Advanced projects, research and development | — | 35 | 40 | (2 | ) | 73 | ||||||||||||||
General and administrative | — | 63 | 2 | 14 | 79 | |||||||||||||||
Other | 8 | 88 | 96 | — | 192 | |||||||||||||||
8 | 1,545 | 702 | — | 2,255 | ||||||||||||||||
Other income (expense) | ||||||||||||||||||||
Other income, net | (10 | ) | — | 28 | — | 18 | ||||||||||||||
Interest income — intercompany | 60 | 4 | 1 | (65 | ) | — | ||||||||||||||
Interest expense — intercompany | (5 | ) | — | (60 | ) | 65 | — | |||||||||||||
Interest expense, net | (27 | ) | (25 | ) | (3 | ) | — | (55 | ) | |||||||||||
18 | (21 | ) | (34 | ) | — | (37 | ) | |||||||||||||
Income (loss) from continuing operations before income tax expense and other items | 10 | 789 | 47 | — | 846 | |||||||||||||||
Income tax expense | (13 | ) | (243 | ) | 15 | — | (241 | ) | ||||||||||||
Equity income (loss) of affiliates | 368 | 3 | 54 | (433 | ) | (8 | ) | |||||||||||||
Income (loss) from continuing operations | 365 | 549 | 116 | (433 | ) | 597 | ||||||||||||||
Income (loss) from discontinued operations | (14 | ) | (14 | ) | — | 14 | (14 | ) | ||||||||||||
Net income (loss) | 351 | 535 | 116 | (419 | ) | 583 | ||||||||||||||
Less: Net income (loss) attributable to noncontrolling interests | — | 234 | 28 | (30 | ) | 232 | ||||||||||||||
Net income (loss) attributable to Newmont stockholders | $ | 351 | $ | 301 | $ | 88 | $ | (389 | ) | $ | 351 | |||||||||
(1) | Exclusive of Amortization and Accretion. |
34
Table of Contents
(dollars in millions, except per share, per ounce and per pound amounts)
Six Months Ended June 30, 2008 | ||||||||||||||||||||
Newmont | ||||||||||||||||||||
Newmont | Mining | |||||||||||||||||||
Mining | Newmont | Other | Corporation | |||||||||||||||||
Consolidating Statement of Income | Corporation | USA | Subsidiaries | Eliminations | Consolidated | |||||||||||||||
Revenues | ||||||||||||||||||||
Sales — gold, net | $ | — | $ | 2,067 | $ | 746 | $ | — | $ | 2,813 | ||||||||||
Sales — copper, net | — | 615 | — | — | 615 | |||||||||||||||
— | 2,682 | 746 | — | 3,428 | ||||||||||||||||
Costs and expenses | ||||||||||||||||||||
Costs applicable to sales — gold(1) | — | 857 | 430 | (10 | ) | 1,277 | ||||||||||||||
Costs applicable to sales — copper(1) | — | 254 | — | — | 254 | |||||||||||||||
Amortization | — | 274 | 89 | (1 | ) | 362 | ||||||||||||||
Accretion | — | 12 | 4 | — | 16 | |||||||||||||||
Exploration | — | 59 | 38 | — | 97 | |||||||||||||||
Advanced projects, research and development | — | 24 | 45 | — | 69 | |||||||||||||||
General and administrative | — | 53 | 2 | 11 | 66 | |||||||||||||||
Other | — | 114 | 66 | — | 180 | |||||||||||||||
— | 1,647 | 674 | — | 2,321 | ||||||||||||||||
Other income (expense) | ||||||||||||||||||||
Other income, net | (9 | ) | 53 | (10 | ) | — | 34 | |||||||||||||
Interest income — intercompany | 145 | 20 | — | (165 | ) | — | ||||||||||||||
Interest expense — intercompany | (4 | ) | — | (161 | ) | 165 | — | |||||||||||||
Interest expense, net | (36 | ) | (22 | ) | (5 | ) | — | (63 | ) | |||||||||||
96 | 51 | (176 | ) | — | (29 | ) | ||||||||||||||
Income (loss) from continuing operations before income tax expense and other items | 96 | 1,086 | (104 | ) | — | 1,078 | ||||||||||||||
Income tax (expense) benefit | (64 | ) | (157 | ) | 34 | — | (187 | ) | ||||||||||||
Equity income (loss) of affiliates | 594 | 1 | 72 | (672 | ) | (5 | ) | |||||||||||||
Income (loss) from continuing operations | 626 | 930 | 2 | (672 | ) | 886 | ||||||||||||||
Income (loss) from discontinued operations | 10 | 7 | 3 | (10 | ) | 10 | ||||||||||||||
Net income (loss) | 636 | 937 | 5 | (682 | ) | 896 | ||||||||||||||
Less: Net income (loss) attributable to noncontrolling interests | — | 271 | (8 | ) | (3 | ) | 260 | |||||||||||||
Net income (loss) attributable to Newmont stockholders | $ | 636 | $ | 666 | $ | 13 | $ | (679 | ) | $ | 636 | |||||||||
(1) | Exclusive of Amortization and Accretion. |
35
Table of Contents
(dollars in millions, except per share, per ounce and per pound amounts)
At June 30, 2009 | ||||||||||||||||||||
Newmont | ||||||||||||||||||||
Newmont | Mining | |||||||||||||||||||
Mining | Newmont | Other | Corporation | |||||||||||||||||
Consolidating Balance Sheets | Corporation | USA | Subsidiaries | Eliminations | Consolidated | |||||||||||||||
Assets | ||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | 385 | $ | 159 | $ | — | $ | 544 | ||||||||||
Marketable securities and other short-term investments | — | 1 | 18 | — | 19 | |||||||||||||||
Trade receivables | — | 211 | 18 | — | 229 | |||||||||||||||
Accounts receivable | 2,262 | 1,120 | 346 | (3,445 | ) | 283 | ||||||||||||||
Inventories | — | 346 | 135 | — | 481 | |||||||||||||||
Stockpiles and ore on leach pads | — | 241 | 77 | — | 318 | |||||||||||||||
Deferred income tax assets | — | 154 | 34 | — | 188 | |||||||||||||||
Other current assets | 1 | 91 | 303 | — | 395 | |||||||||||||||
Current assets | 2,263 | 2,549 | 1,090 | (3,445 | ) | 2,457 | ||||||||||||||
Property, plant and mine development, net | — | 5,256 | 6,587 | (18 | ) | 11,825 | ||||||||||||||
Investments | — | 23 | 879 | — | 902 | |||||||||||||||
Investments in subsidiaries | 8,091 | 31 | 921 | (9,043 | ) | — | ||||||||||||||
Long-term stockpiles and ore on leach pads | — | 1,206 | 120 | — | 1,326 | |||||||||||||||
Deferred income tax assets | 43 | 866 | 217 | — | 1,126 | |||||||||||||||
Other long-term assets | 1,802 | 294 | 197 | (2,075 | ) | 218 | ||||||||||||||
Goodwill | — | — | 188 | — | 188 | |||||||||||||||
Assets of operations held for sale | — | 69 | — | — | 69 | |||||||||||||||
Total assets | $ | 12,199 | $ | 10,294 | $ | 10,199 | $ | (14,581 | ) | $ | 18,111 | |||||||||
Liabilities | ||||||||||||||||||||
Current portion of long-term debt | $ | — | $ | 211 | $ | 10 | $ | — | $ | 221 | ||||||||||
Accounts payable | 656 | 430 | 2,661 | (3,437 | ) | 310 | ||||||||||||||
Employee related benefits | — | 126 | 36 | — | 162 | |||||||||||||||
Income and mining taxes | 9 | 77 | 4 | — | 90 | |||||||||||||||
Other current liabilities | 23 | 211 | 2,808 | (1,971 | ) | 1,071 | ||||||||||||||
Current liabilities | 688 | 1,055 | 5,519 | (5,408 | ) | 1,854 | ||||||||||||||
Long-term debt | 2,016 | 724 | 70 | — | 2,810 | |||||||||||||||
Reclamation and remediation liabilities | 1 | 507 | 213 | — | 721 | |||||||||||||||
Deferred income tax liabilities | 119 | 359 | 759 | — | 1,237 | |||||||||||||||
Employee-related benefits | 4 | 352 | 48 | — | 404 | |||||||||||||||
Other long-term liabilities | 310 | 186 | 1,874 | (2,093 | ) | 277 | ||||||||||||||
Liabilities of operations held for sale | — | 54 | — | — | 54 | |||||||||||||||
Total liabilities | 3,138 | 3,237 | 8,483 | (7,501 | ) | 7,357 | ||||||||||||||
Stockholders’ equity | ||||||||||||||||||||
Preferred stock | — | — | 61 | (61 | ) | — | ||||||||||||||
Common stock | 768 | — | — | — | 768 | |||||||||||||||
Additional paid-in capital | 7,850 | 2,649 | 3,400 | (5,847 | ) | 8,052 | ||||||||||||||
Accumulated other comprehensive (loss) income | 141 | (153 | ) | 285 | (132 | ) | 141 | |||||||||||||
Retained earnings (deficit) | 302 | 3,009 | (2,293 | ) | (716 | ) | 302 | |||||||||||||
Total Newmont stockholders’ equity | 9,061 | 5,505 | 1,453 | (6,756 | ) | 9,263 | ||||||||||||||
Noncontrolling interests | — | 1,552 | 263 | (324 | ) | 1,491 | ||||||||||||||
Total stockholders’ equity | 9,061 | 7,057 | 1,716 | (7,080 | ) | 10,754 | ||||||||||||||
Total liabilities and stockholders’ equity | $ | 12,199 | $ | 10,294 | $ | 10,199 | $ | (14,581 | ) | $ | 18,111 | |||||||||
36
Table of Contents
(dollars in millions, except per share, per ounce and per pound amounts)
At December 31, 2008 | ||||||||||||||||||||
Newmont | ||||||||||||||||||||
Newmont | Mining | |||||||||||||||||||
Mining | Newmont | Other | Corporation | |||||||||||||||||
Consolidating Balance Sheets | Corporation | USA | Subsidiaries | Eliminations | Consolidated | |||||||||||||||
Assets | ||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | 310 | $ | 125 | $ | — | $ | 435 | ||||||||||
Marketable securities and other short-term investments | — | 1 | 11 | — | 12 | |||||||||||||||
Trade receivables | — | 97 | 7 | — | 104 | |||||||||||||||
Accounts receivable | 1,941 | 904 | 370 | (3,001 | ) | 214 | ||||||||||||||
Inventories | — | 395 | 112 | — | 507 | |||||||||||||||
Stockpiles and ore on leach pads | — | 242 | 48 | — | 290 | |||||||||||||||
Deferred income tax assets | — | 236 | 48 | — | 284 | |||||||||||||||
Other current assets | 1 | 220 | 234 | — | 455 | |||||||||||||||
Current assets | 1,942 | 2,405 | 955 | (3,001 | ) | 2,301 | ||||||||||||||
Property, plant and mine development, net | — | 5,325 | 4,822 | (19 | ) | 10,128 | ||||||||||||||
Investments | — | 11 | 644 | — | 655 | |||||||||||||||
Investments in subsidiaries | 6,247 | 25 | 828 | (7,100 | ) | — | ||||||||||||||
Long-term stockpiles and ore on leach pads | — | 1,031 | 105 | — | 1,136 | |||||||||||||||
Deferred income tax assets | (45 | ) | 873 | 211 | — | 1,039 | ||||||||||||||
Other long-term assets | 1,977 | 320 | 153 | (2,243 | ) | 207 | ||||||||||||||
Goodwill | — | — | 188 | — | 188 | |||||||||||||||
Assets of operations held for sale | — | 73 | — | — | 73 | |||||||||||||||
Total assets | $ | 10,121 | $ | 10,063 | $ | 7,906 | $ | (12,363 | ) | $ | 15,727 | |||||||||
Liabilities | ||||||||||||||||||||
Current portion of long-term debt | $ | — | $ | 156 | $ | 9 | $ | — | $ | 165 | ||||||||||
Accounts payable | 524 | 586 | 2,292 | (2,991 | ) | 411 | ||||||||||||||
Employee-related benefits | — | 139 | 31 | — | 170 | |||||||||||||||
Income and mining taxes | 21 | 39 | 1 | — | 61 | |||||||||||||||
Other current liabilities | 15 | 303 | 461 | (9 | ) | 770 | ||||||||||||||
Current liabilities | 560 | 1,223 | 2,794 | (3,000 | ) | 1,577 | ||||||||||||||
Long-term debt | 2,203 | 802 | 67 | — | 3,072 | |||||||||||||||
Reclamation and remediation liabilities | 1 | 502 | 196 | — | 699 | |||||||||||||||
Deferred income tax liabilities | — | 364 | 687 | — | 1,051 | |||||||||||||||
Employee-related benefits | 3 | 341 | 35 | — | 379 | |||||||||||||||
Other long-term liabilities | 283 | 182 | 2,049 | (2,262 | ) | 252 | ||||||||||||||
Liabilities of operations held for sale | — | 36 | — | — | 36 | |||||||||||||||
Total liabilities | 3,050 | 3,450 | 5,828 | (5,262 | ) | 7,066 | ||||||||||||||
Stockholders’ equity | ||||||||||||||||||||
Preferred stock | — | — | 61 | (61 | ) | — | ||||||||||||||
Common stock | 709 | — | — | — | 709 | |||||||||||||||
Additional paid-in capital | 6,611 | 2,647 | 4,334 | (6,761 | ) | 6,831 | ||||||||||||||
Accumulated other comprehensive (loss) income | (253 | ) | (173 | ) | (138 | ) | 311 | (253 | ) | |||||||||||
Retained earnings (deficit) | 4 | 2,707 | (2,381 | ) | (326 | ) | 4 | |||||||||||||
Total Newmont stockholders’ equity | 7,071 | 5,181 | 1,876 | (6,837 | ) | 7,291 | ||||||||||||||
Noncontrolling interests | — | 1,432 | 202 | (264 | ) | 1,370 | ||||||||||||||
Total stockholders’ equity | 7,071 | 6,613 | 2,078 | (7,101 | ) | 8,661 | ||||||||||||||
Total liabilities and stockholders’ equity | $ | 10,121 | $ | 10,063 | $ | 7,906 | $ | (12,363 | ) | $ | 15,727 | |||||||||
37
Table of Contents
(dollars in millions, except per share, per ounce and per pound amounts)
Six Months Ended June 30, 2009 | ||||||||||||||||||||
Newmont | ||||||||||||||||||||
Newmont | Mining | |||||||||||||||||||
Mining | Newmont | Other | Corporation | |||||||||||||||||
Consolidating Statement of Cash Flows | Corporation | USA | Subsidiaries | Eliminations | Consolidated | |||||||||||||||
Operating activities: | ||||||||||||||||||||
Net income | $ | 351 | $ | 535 | $ | 116 | $ | (419 | ) | $ | 583 | |||||||||
Adjustments | 49 | 343 | (331 | ) | 419 | 480 | ||||||||||||||
Net change in operating assets and liabilities | 1 | (220 | ) | 42 | — | (177 | ) | |||||||||||||
Net cash provided from (used in) continuing operations | 401 | 658 | (173 | ) | — | 886 | ||||||||||||||
Net cash provided from discontinued operations | — | 8 | — | — | 8 | |||||||||||||||
Net cash provided from (used in) operations | 401 | 666 | (173 | ) | — | 894 | ||||||||||||||
Investing activities: | ||||||||||||||||||||
Additions to property, plant and mine development | — | (234 | ) | (676 | ) | — | (910 | ) | ||||||||||||
Proceeds from sale of marketable debt and equity securities | — | — | 5 | — | 5 | |||||||||||||||
Acquisitions, net | (8 | ) | (11 | ) | (741 | ) | — | (760 | ) | |||||||||||
Other | — | 1 | (8 | ) | — | (7 | ) | |||||||||||||
Net cash used in investing activities | (8 | ) | (244 | ) | (1,420 | ) | — | (1,672 | ) | |||||||||||
Financing activities: | ||||||||||||||||||||
Net external (repayments) borrowings | (154 | ) | (26 | ) | 6 | — | (174 | ) | ||||||||||||
Net intercompany (repayments) borrowings | (1,381 | ) | (207 | ) | 1,588 | — | — | |||||||||||||
Dividends paid to common stockholders | (98 | ) | — | — | — | (98 | ) | |||||||||||||
Dividends paid to noncontrolling interests in subsidiaries | — | (112 | ) | — | — | (112 | ) | |||||||||||||
Proceeds from stock issuance | 1,247 | — | — | — | 1,247 | |||||||||||||||
Change in restricted cash and other | (7 | ) | — | 12 | — | 5 | ||||||||||||||
Net cash (used in) provided from financing activities of continuing operations | (393 | ) | (345 | ) | 1,606 | — | 868 | |||||||||||||
Net cash used in financing activities of discontinued operations | — | (2 | ) | — | — | (2 | ) | |||||||||||||
Net cash (used in) provided from financing activities | (393 | ) | (347 | ) | 1,606 | — | 866 | |||||||||||||
Effect of exchange rate changes on cash | — | — | 21 | — | 21 | |||||||||||||||
Net change in cash and cash equivalents | — | 75 | 34 | — | 109 | |||||||||||||||
Cash and cash equivalents at beginning of period | — | 310 | 125 | — | 435 | |||||||||||||||
Cash and cash equivalents at end of period | $ | — | $ | 385 | $ | 159 | $ | — | $ | 544 | ||||||||||
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Table of Contents
(dollars in millions, except per share, per ounce and per pound amounts)
Six Months Ended June 30, 2008 | ||||||||||||||||||||
Newmont | ||||||||||||||||||||
Newmont | Mining | |||||||||||||||||||
Mining | Newmont | Other | Corporation | |||||||||||||||||
Consolidating Statement of Cash Flows | Corporation | USA | Subsidiaries | Eliminations | Consolidated | |||||||||||||||
Operating activities: | ||||||||||||||||||||
Net income | $ | 636 | $ | 937 | $ | 5 | $ | (682 | ) | $ | 896 | |||||||||
Adjustments | 47 | 86 | (481 | ) | 682 | 334 | ||||||||||||||
Net change in operating assets and liabilities | 41 | (289 | ) | (11 | ) | — | (259 | ) | ||||||||||||
Net cash provided from (used in) continuing operations | 724 | 734 | (487 | ) | — | 971 | ||||||||||||||
Net cash (used in) provided from discontinued operations | — | (125 | ) | 18 | — | (107 | ) | |||||||||||||
Net cash provided from (used in) operations | 724 | 609 | (469 | ) | — | 864 | ||||||||||||||
Investing activities: | ||||||||||||||||||||
Additions to property, plant and mine development | — | (326 | ) | (567 | ) | — | (893 | ) | ||||||||||||
Acquisitions, net | — | (7 | ) | (318 | ) | — | (325 | ) | ||||||||||||
Other | — | (15 | ) | (1 | ) | — | (16 | ) | ||||||||||||
Net cash used in investing activities of continuing operations | — | (348 | ) | (886 | ) | — | (1,234 | ) | ||||||||||||
Net cash (used in) provided from investing activities of discontinued operations | — | (14 | ) | 4 | — | (10 | ) | |||||||||||||
Net cash used in investing activities | — | (362 | ) | (882 | ) | — | (1,244 | ) | ||||||||||||
Financing activities: | ||||||||||||||||||||
Net external borrowings (repayments) | 475 | (77 | ) | — | — | 398 | ||||||||||||||
Net intercompany (repayments) borrowings | (1,132 | ) | (50 | ) | 1,182 | — | — | |||||||||||||
Dividends paid to common stockholders | (91 | ) | — | — | — | (91 | ) | |||||||||||||
Dividends paid to noncontrolling interests in subsidiaries | — | (147 | ) | — | — | (147 | ) | |||||||||||||
Proceeds from stock issuance | 24 | — | — | — | 24 | |||||||||||||||
Change in restricted cash and other | — | 3 | 4 | — | 7 | |||||||||||||||
Net cash (used in) provided from financing activities of continuing operations | (724 | ) | (271 | ) | 1,186 | — | 191 | |||||||||||||
Net cash used in financing activities of discontinued operations | — | (2 | ) | — | — | (2 | ) | |||||||||||||
Net cash (used in) provided from financing activities | (724 | ) | (273 | ) | 1,186 | — | 189 | |||||||||||||
Effect of exchange rate changes on cash | — | — | (4 | ) | — | (4 | ) | |||||||||||||
Net change in cash and cash equivalents | — | (26 | ) | (169 | ) | — | (195 | ) | ||||||||||||
Cash and cash equivalents at beginning of period | — | 790 | 441 | — | 1,231 | |||||||||||||||
Cash and cash equivalents at end of period | $ | — | $ | 764 | $ | 272 | $ | — | $ | 1,036 | ||||||||||
39
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(dollars in millions, except per share, per ounce and per pound amounts)
40
Table of Contents
(dollars in millions, except per share, per ounce and per pound amounts)
41
Table of Contents
(dollars in millions, except per share, per ounce and per pound amounts)
42
Table of Contents
(dollars in millions, except per share, per ounce and per pound amounts)
43
Table of Contents
(dollars in millions, except per share, per ounce and per pound amounts)
44
Table of Contents
(dollars in millions, except per share, per ounce and per pound amounts)
45
Table of Contents
(dollars in millions, except per share, per ounce and per pound amounts)
46
Table of Contents
ITEM 2. | MANAGEMENT’S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS AND FINANCIAL CONDITION(dollars in millions, except per share, per ounce and per pound amounts). |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2009 | 2008 | 2009 | 2008 | |||||||||||||
Revenues | $ | 1,602 | $ | 1,503 | $ | 3,138 | $ | 3,428 | ||||||||
Income from continuing operations | $ | 320 | $ | 337 | $ | 597 | $ | 886 | ||||||||
Net income | $ | 306 | $ | 339 | $ | 583 | $ | 896 | ||||||||
Net income attributable to Newmont stockholders | $ | 162 | $ | 271 | $ | 351 | $ | 636 | ||||||||
Per common share, basic | ||||||||||||||||
Income from continuing operations attributable to Newmont stockholders | $ | 0.35 | $ | 0.60 | $ | 0.75 | $ | 1.38 | ||||||||
Net income attributable to Newmont stockholders | $ | 0.33 | $ | 0.60 | $ | 0.73 | $ | 1.40 | ||||||||
Consolidated gold ounces sold (thousands)(1) | 1,502 | 1,483 | 3,019 | 3,084 | ||||||||||||
Consolidated copper pounds sold (millions) | 105 | 51 | 201 | 157 | ||||||||||||
Average price received, net(2) | ||||||||||||||||
Gold (per ounce) | $ | 915 | $ | 900 | $ | 911 | $ | 917 | ||||||||
Copper (per pound) | $ | 2.17 | $ | 3.57 | $ | 1.94 | $ | 3.93 | ||||||||
Costs applicable to sales(3) | ||||||||||||||||
Gold (per ounce) | $ | 423 | $ | 439 | $ | 427 | $ | 416 | ||||||||
Copper (per pound) | $ | 0.58 | $ | 2.02 | $ | 0.73 | $ | 1.62 |
(1) | Includes incremental start-up ounces of 1 for both the three and six months ended June 30, 2009 and 16 and 17 for the three and six months ended June 30, 2008, respectively. Incremental start-up includes the removal and production of de minimis saleable materials during development and is recorded asOther income, net of incremental mining and processing costs. | |
(2) | After treatment and refining charges. | |
(3) | ExcludesAmortizationandAccretion. |
47
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Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2009 | 2008 | 2009 | 2008 | |||||||||||||
Consolidated gold sales: | ||||||||||||||||
Gross | $ | 1,383 | $ | 1,323 | $ | 2,761 | $ | 2,823 | ||||||||
Less: Treatment and refining charges | (10 | ) | (3 | ) | (13 | ) | (10 | ) | ||||||||
Net | $ | 1,373 | $ | 1,320 | $ | 2,748 | $ | 2,813 | ||||||||
Consolidated gold ounces sold (thousands): | ||||||||||||||||
Gross | 1,502 | 1,483 | 3,019 | 3,084 | ||||||||||||
Less: Incremental start-up sales | (1 | ) | (16 | ) | (1 | ) | (17 | ) | ||||||||
Net | 1,501 | 1,467 | 3,018 | 3,067 | ||||||||||||
Average realized price (per ounce): | ||||||||||||||||
Before treatment and refining charges | $ | 922 | $ | 902 | $ | 915 | $ | 920 | ||||||||
After treatment and refining charges | $ | 915 | $ | 900 | $ | 911 | $ | 917 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||
2009 vs. 2008 | 2009 vs. 2008 | |||||||
Increase (decrease) in consolidated ounces sold | $ | 30 | $ | (45 | ) | |||
Increase (decrease) in average realized gold price | 30 | (17 | ) | |||||
Increase in treatment and refining charges | (7 | ) | (3 | ) | ||||
$ | 53 | $ | (65 | ) | ||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2009 | 2008 | 2009 | 2008 | |||||||||||||
Consolidated copper sales: | ||||||||||||||||
Gross before provisional pricing | $ | 223 | $ | 194 | $ | 377 | $ | 576 | ||||||||
Provisional pricing mark-to-market gain | 35 | 8 | 64 | 90 | ||||||||||||
Gross after provisional pricing | 258 | 202 | 441 | 666 | ||||||||||||
Less: Treatment and refining charges | (29 | ) | (19 | ) | (51 | ) | (51 | ) | ||||||||
Net | $ | 229 | $ | 183 | $ | 390 | $ | 615 | ||||||||
Consolidated copper pounds sold (millions) | 105 | 51 | 201 | 157 | ||||||||||||
Average realized price (per pound): | ||||||||||||||||
Gross before provisional pricing | $ | 2.12 | $ | 3.78 | $ | 1.88 | $ | 3.67 | ||||||||
Provisional pricing mark-to-market gain | 0.33 | 0.16 | 0.32 | 0.58 | ||||||||||||
Gross after provisional pricing | 2.45 | 3.94 | 2.20 | 4.25 | ||||||||||||
Less: Treatment and refining charges | (0.28 | ) | (0.37 | ) | (0.26 | ) | (0.32 | ) | ||||||||
Net | $ | 2.17 | $ | 3.57 | $ | 1.94 | $ | 3.93 | ||||||||
48
Table of Contents
Three Months Ended June 30, | Six Months Ended June 30, | |||||||
2009 vs. 2008 | 2009 vs. 2008 | |||||||
Increase in consolidated pounds sold | $ | 213 | $ | 187 | ||||
Decrease in average realized copper price | (157 | ) | (412 | ) | ||||
Increase in treatment and refining charges | (10 | ) | — | |||||
$ | 46 | $ | (225 | ) | ||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2009 | 2008 | 2009 | 2008 | |||||||||||||
Gold | ||||||||||||||||
North America: | ||||||||||||||||
Nevada | $ | 372 | $ | 495 | $ | 840 | $ | 986 | ||||||||
La Herradura | 29 | 21 | 52 | 45 | ||||||||||||
401 | 516 | 892 | 1,031 | |||||||||||||
South America: | ||||||||||||||||
Yanacocha | 489 | 388 | 916 | 887 | ||||||||||||
Asia Pacific: | ||||||||||||||||
Jundee | 102 | 101 | 190 | 188 | ||||||||||||
Tanami | 81 | 85 | 159 | 174 | ||||||||||||
Kalgoorlie | 66 | 55 | 132 | 120 | ||||||||||||
Waihi | 14 | 31 | 51 | 60 | ||||||||||||
Batu Hijau | 98 | 36 | 157 | 148 | ||||||||||||
361 | 308 | 689 | 690 | |||||||||||||
Africa: | ||||||||||||||||
Ahafo | 122 | 107 | 251 | 204 | ||||||||||||
Corporate and other | — | 1 | — | 1 | ||||||||||||
$ | 1,373 | $ | 1,320 | $ | 2,748 | $ | 2,813 | |||||||||
Copper | ||||||||||||||||
Asia Pacific: | ||||||||||||||||
Batu Hijau | $ | 229 | $ | 183 | $ | 390 | $ | 615 | ||||||||
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Table of Contents
Costs Applicable to Sales | Amortization | |||||||||||||||||||||||||||||||
Three Months Ended | Six Months Ended | Three Months Ended | Six Months Ended | |||||||||||||||||||||||||||||
June 30, | June 30, | June 30, | June 30, | |||||||||||||||||||||||||||||
2009 | 2008 | 2009 | 2008 | 2009 | 2008 | 2009 | 2008 | |||||||||||||||||||||||||
Gold | ||||||||||||||||||||||||||||||||
North America: | ||||||||||||||||||||||||||||||||
Nevada | $ | 228 | $ | 238 | $ | 491 | $ | 453 | $ | 53 | $ | 60 | $ | 114 | $ | 110 | ||||||||||||||||
Hope Bay | — | — | — | — | 3 | — | 6 | — | ||||||||||||||||||||||||
La Herradura | 12 | 11 | 22 | 18 | 3 | 2 | 5 | 4 | ||||||||||||||||||||||||
240 | 249 | 513 | 471 | 59 | 62 | 125 | 114 | |||||||||||||||||||||||||
South America: | ||||||||||||||||||||||||||||||||
Yanacocha | 173 | 161 | 325 | 329 | 44 | 44 | 85 | 88 | ||||||||||||||||||||||||
Asia Pacific: | ||||||||||||||||||||||||||||||||
Jundee | 36 | 44 | 70 | 82 | 12 | 10 | 21 | 17 | ||||||||||||||||||||||||
Tanami | 53 | 57 | 101 | 107 | 11 | 9 | 22 | 17 | ||||||||||||||||||||||||
Kalgoorlie | 43 | 54 | 91 | 108 | 3 | 3 | 6 | 7 | ||||||||||||||||||||||||
Waihi | 9 | 15 | 24 | 29 | 4 | 9 | 13 | 15 | ||||||||||||||||||||||||
Batu Hijau | 24 | 19 | 51 | 56 | 6 | 3 | 13 | 11 | ||||||||||||||||||||||||
165 | 189 | 337 | 382 | 36 | 34 | 75 | 67 | |||||||||||||||||||||||||
�� | ||||||||||||||||||||||||||||||||
Africa: | ||||||||||||||||||||||||||||||||
Ahafo | 57 | 46 | 114 | 95 | 16 | 18 | 34 | 31 | ||||||||||||||||||||||||
635 | 645 | 1,289 | 1,277 | 155 | 158 | 319 | 300 | |||||||||||||||||||||||||
Copper | ||||||||||||||||||||||||||||||||
Asia Pacific: | ||||||||||||||||||||||||||||||||
Batu Hijau | 61 | 104 | 146 | 254 | 16 | 20 | 37 | 51 | ||||||||||||||||||||||||
Other | ||||||||||||||||||||||||||||||||
Asia Pacific | — | — | — | — | — | 1 | 1 | 2 | ||||||||||||||||||||||||
Corporate and Other | — | — | — | — | 5 | 4 | 10 | 9 | ||||||||||||||||||||||||
— | — | — | — | 5 | 5 | 11 | 11 | |||||||||||||||||||||||||
$ | 696 | $ | 749 | $ | 1,435 | $ | 1,531 | $ | 176 | $ | 183 | $ | 367 | $ | 362 | |||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2009 | 2008 | 2009 | 2008 | |||||||||||||
Hope Bay | $ | 11 | $ | 9 | $ | 16 | $ | 13 | ||||||||
Boddington | 10 | 1 | 13 | 2 | ||||||||||||
Technical and project services | 7 | 6 | 12 | 10 | ||||||||||||
Nevada underground | 3 | — | 8 | — | ||||||||||||
Corporate | 3 | 4 | 7 | 7 | ||||||||||||
Tanami/Callie Deeps | 1 | 1 | 3 | 1 | ||||||||||||
Akyem | 2 | 1 | 3 | 3 | ||||||||||||
Fort a la Corne JV | — | 6 | 1 | 13 | ||||||||||||
Other | 5 | 11 | 10 | 20 | ||||||||||||
$ | 42 | $ | 39 | $ | 73 | $ | 69 | |||||||||
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Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2009 | 2008 | 2009 | 2008 | |||||||||||||
Boddington acquisition costs | $ | 59 | $ | — | $ | 67 | $ | — | ||||||||
Regional administration | 14 | 12 | 26 | 21 | ||||||||||||
Community development | 11 | 18 | 21 | 32 | ||||||||||||
Workforce reduction | 1 | — | 15 | — | ||||||||||||
Peruvian royalty | 5 | 4 | 11 | 11 | ||||||||||||
Western Australia power plant | 6 | 8 | 9 | 13 | ||||||||||||
Batu Hijau divestiture | 1 | 2 | 6 | 5 | ||||||||||||
World Gold Council dues | 3 | 2 | 6 | 5 | ||||||||||||
Accretion, non-operating | 3 | 3 | 6 | 5 | ||||||||||||
Pension settlement loss | — | — | — | 11 | ||||||||||||
Reclamation estimate revisions | — | 59 | — | 61 | ||||||||||||
Other | 13 | 10 | 25 | 16 | ||||||||||||
$ | 116 | $ | 118 | $ | 192 | $ | 180 | |||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2009 | 2008 | 2009 | 2008 | |||||||||||||
Canadian Oil Sands Trust income | $ | 5 | $ | 31 | $ | 9 | $ | 55 | ||||||||
Interest income | 6 | 7 | 9 | 17 | ||||||||||||
Gain on sale of investments, net | — | 10 | — | 10 | ||||||||||||
Income from development projects, net | — | 9 | — | 9 | ||||||||||||
Foreign currency exchange losses, net | 1 | (7 | ) | (2 | ) | (13 | ) | |||||||||
(Loss) gain on ineffective portion of derivative instruments, net | (3 | ) | (1 | ) | (4 | ) | 2 | |||||||||
Impairment of marketable securities | — | (34 | ) | (6 | ) | (56 | ) | |||||||||
Other | — | 4 | 12 | 10 | ||||||||||||
$ | 9 | $ | 19 | $ | 18 | $ | 34 | |||||||||
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Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2009 | 2008 | 2009 | 2008 | |||||||||||||
Sales — gold, net | $ | 16 | $ | 19 | $ | 32 | $ | 37 | ||||||||
Income from operations | $ | 1 | $ | 7 | $ | 1 | $ | 12 | ||||||||
Loss on impairment | (44 | ) | — | (44 | ) | — | ||||||||||
(Loss) gain on sale of royalty portfolio | — | (2 | ) | — | 5 | |||||||||||
(Loss) gain on sale of Pajingo assets | — | (1 | ) | — | 1 | |||||||||||
Pre-tax (loss) income | (43 | ) | 4 | (43 | ) | 18 | ||||||||||
Income tax benefit (expense) | 29 | (2 | ) | 29 | (8 | ) | ||||||||||
(Loss) income from discontinued operations | $ | (14 | ) | $ | 2 | $ | (14 | ) | $ | 10 | ||||||
Gold Ounces or | Costs Applicable to | |||||||||||||||||||||||
Copper Pounds Sold(1) | Sales(3) | Amortization | ||||||||||||||||||||||
2009 | 2008 | 2009 | 2008 | 2009 | 2008 | |||||||||||||||||||
(ounces in thousands) | ($ per ounce) | ($ per ounce) | ||||||||||||||||||||||
Three Months Ended June 30, | ||||||||||||||||||||||||
Gold | ||||||||||||||||||||||||
North America | 446 | 579 | $ | 538 | $ | 429 | $ | 124 | $ | 107 | ||||||||||||||
South America(2) | 534 | 432 | 323 | 374 | 82 | 102 | ||||||||||||||||||
Asia Pacific(2) | 390 | 338 | 426 | 560 | 95 | 102 | ||||||||||||||||||
Africa | 132 | 134 | 428 | 390 | 119 | 147 | ||||||||||||||||||
Total/Weighted-Average | 1,502 | 1,483 | $ | 423 | $ | 439 | $ | 101 | $ | 108 | ||||||||||||||
(pounds in millions) | ($ per pound) | ($ per pound) | ||||||||||||||||||||||
Copper | ||||||||||||||||||||||||
Asia Pacific(3) | 105 | 51 | $ | 0.58 | $ | 2.02 | $ | 0.15 | $ | 0.38 |
Gold Ounces or | Costs Applicable to | |||||||||||||||||||||||
Copper Pounds Sold(1) | Sales(3) | Amortization | ||||||||||||||||||||||
2009 | 2008 | 2009 | 2008 | 2009 | 2008 | |||||||||||||||||||
(ounces in thousands) | ($ per ounce) | ($ per ounce) | ||||||||||||||||||||||
Six Months Ended June 30, | ||||||||||||||||||||||||
Gold | ||||||||||||||||||||||||
North America | 989 | 1,129 | $ | 519 | $ | 417 | $ | 120 | $ | 101 | ||||||||||||||
South America(2) | 1,004 | 972 | 324 | 339 | 84 | 91 | ||||||||||||||||||
Asia Pacific(2) | 750 | 744 | 450 | 514 | 101 | 91 | ||||||||||||||||||
Africa | 276 | 239 | 413 | 425 | 123 | 138 | ||||||||||||||||||
Total/Weighted-Average | 3,019 | 3,084 | $ | 427 | $ | 416 | $ | 104 | $ | 98 | ||||||||||||||
(pounds in millions) | ($ per pound) | ($ per pound) | ||||||||||||||||||||||
Copper | ||||||||||||||||||||||||
Asia Pacific(3) | 201 | 157 | $ | 0.73 | $ | 1.62 | $ | 0.19 | $ | 0.33 |
(1) | Consolidated gold ounces sold includes incremental start-up ounces of 1, in North America, for both the three and six months ended June 30, 2009 and 16 and 17, primarily in Africa, for the three and six months ended June 30, 2008. Incremental start-up sales includes the removal and production of de minimis saleable materials during development and is recorded asOther income, net of incremental mining and processing costs. | |
(2) | Consolidated gold ounces and copper pounds sold includes noncontrolling interests’ share for Yanacocha and Batu Hijau. | |
(3) | ExcludesAmortizationandAccretion. |
52
Table of Contents
Costs Applicable to | ||||||||||||||||||||||||
Gold Ounces Sold(1) | Sales(2) | Amortization | ||||||||||||||||||||||
2009 | 2008 | 2009 | 2008 | 2009 | 2008 | |||||||||||||||||||
(in thousands) | ($ per ounce) | ($ per ounce) | ||||||||||||||||||||||
Three Months Ended June 30, | ||||||||||||||||||||||||
Nevada | 415 | 554 | $ | 549 | $ | 430 | $ | 126 | $ | 108 | ||||||||||||||
La Herradura (44% owned) | 31 | 25 | 398 | 388 | 91 | 85 | ||||||||||||||||||
446 | 579 | $ | 538 | $ | 429 | $ | 124 | $ | 107 | |||||||||||||||
Costs Applicable to | ||||||||||||||||||||||||
Gold Ounces Sold(1) | Sales(2) | Amortization | ||||||||||||||||||||||
2009 | 2008 | 2009 | 2008 | 2009 | 2008 | |||||||||||||||||||
(in thousands) | ($ per ounce) | ($ per ounce) | ||||||||||||||||||||||
Six Months Ended June 30, | ||||||||||||||||||||||||
Nevada | 933 | 1,080 | $ | 527 | $ | 420 | $ | 122 | $ | 102 | ||||||||||||||
La Herradura (44% owned) | 56 | 49 | 393 | 357 | 90 | 84 | ||||||||||||||||||
989 | 1,129 | $ | 519 | $ | 417 | $ | 120 | $ | 101 | |||||||||||||||
(1) | Includes incremental start-up ounces of 1 in Nevada for both the three and six months ended June 30, 2009 and the six months ended June 30, 2008. | |
(2) | ExcludesAmortizationandAccretion. |
53
Table of Contents
Costs Applicable to | ||||||||||||||||||||||||
Gold Ounces Sold(1) | Sales(2) | Amortization | ||||||||||||||||||||||
2009 | 2008 | 2009 | 2008 | 2009 | 2008 | |||||||||||||||||||
(in thousands) | ($ per ounce) | ($ per ounce) | ||||||||||||||||||||||
Three Months Ended June 30, | ||||||||||||||||||||||||
Yanacocha (51.35% owned) | 534 | 432 | $ | 323 | $ | 374 | $ | 82 | $ | 102 |
Costs Applicable to | ||||||||||||||||||||||||
Gold Ounces Sold(1) | Sales(2) | Amortization | ||||||||||||||||||||||
2009 | 2008 | 2009 | 2008 | 2009 | 2008 | |||||||||||||||||||
(in thousands) | ($ per ounce) | ($ per ounce) | ||||||||||||||||||||||
Six Months Ended June 30, | ||||||||||||||||||||||||
Yanacocha (51.35% owned) | 1,004 | 972 | $ | 324 | $ | 339 | $ | 84 | $ | 91 |
(1) | Consolidated gold ounces sold includes noncontrolling interests’ share. | |
(2) | ExcludesAmortizationandAccretion. |
54
Table of Contents
Gold Ounces Sold or | Costs Applicable to | |||||||||||||||||||||||
Copper Pounds Sold | Sales(1) | Amortization | ||||||||||||||||||||||
2009 | 2008 | 2009 | 2008 | 2009 | 2008 | |||||||||||||||||||
(ounces in thousands) | ($ per ounce) | ($ per ounce) | ||||||||||||||||||||||
Three Months Ended June 30, | ||||||||||||||||||||||||
Gold | ||||||||||||||||||||||||
Jundee | 108 | 109 | $ | 338 | $ | 401 | $ | 110 | $ | 84 | ||||||||||||||
Tanami | 88 | 95 | 599 | 605 | 127 | 102 | ||||||||||||||||||
Kalgoorlie (50% owned) | 71 | 63 | 607 | 860 | 39 | 56 | ||||||||||||||||||
Waihi | 16 | 34 | 582 | 441 | 287 | 248 | ||||||||||||||||||
Batu Hijau (45% owned)(2) | 107 | 37 | 229 | 518 | 62 | 99 | ||||||||||||||||||
390 | 338 | $ | 426 | $ | 560 | $ | 95 | $ | 102 | |||||||||||||||
(pounds in millions) | ($ per pound) | ($ per pound) | ||||||||||||||||||||||
Three Months Ended June 30, | ||||||||||||||||||||||||
Copper | ||||||||||||||||||||||||
Batu Hijau (45% owned)(2) | 105 | 51 | $ | 0.58 | $ | 2.02 | $ | 0.15 | $ | 0.38 |
Gold Ounces Sold or | Costs Applicable to | |||||||||||||||||||||||
Copper Pounds Sold | Sales(1) | Amortization | ||||||||||||||||||||||
2009 | 2008 | 2009 | 2008 | 2009 | 2008 | |||||||||||||||||||
(ounces in thousands) | ($ per ounce) | ($ per ounce) | ||||||||||||||||||||||
Six Months Ended June 30, | ||||||||||||||||||||||||
Gold | ||||||||||||||||||||||||
Jundee | 202 | 200 | $ | 345 | $ | 410 | $ | 104 | $ | 83 | ||||||||||||||
Tanami | 173 | 190 | 586 | 565 | 125 | 91 | ||||||||||||||||||
Kalgoorlie (50% owned) | 146 | 132 | 625 | 817 | 43 | 57 | ||||||||||||||||||
Waihi | 56 | 65 | 426 | 448 | 241 | 226 | ||||||||||||||||||
Batu Hijau (45% owned)(2) | 173 | 158 | 297 | 358 | 78 | 72 | ||||||||||||||||||
750 | 745 | $ | 450 | $ | 514 | $ | 101 | $ | 91 | |||||||||||||||
(pounds in millions) | ($ per pound) | ($ per pound) | ||||||||||||||||||||||
Six Months Ended June 30, Copper | ||||||||||||||||||||||||
Batu Hijau (45% owned)(2) | 201 | 157 | $ | 0.73 | $ | 1.62 | $ | 0.19 | $ | 0.33 |
(1) | ExcludesAmortizationandAccretion. | |
(2) | Consolidated gold ounces or copper pounds sold includes noncontrolling interests’ share. |
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Costs Applicable to | ||||||||||||||||||||||||
Gold Ounces Sold(1) | Sales(2) | Amortization | ||||||||||||||||||||||
2009 | 2008 | 2009 | 2008 | 2009 | 2008 | |||||||||||||||||||
(in thousands) | ($ per ounce) | ($ per ounce) | ||||||||||||||||||||||
Three Months Ended June 30, | ||||||||||||||||||||||||
Ahafo | 132 | 134 | $ | 428 | $ | 390 | $ | 119 | $ | 147 |
Costs Applicable to | ||||||||||||||||||||||||
Gold Ounces Sold(1) | Sales(2) | Amortization | ||||||||||||||||||||||
2009 | 2008 | 2009 | 2008 | 2009 | 2008 | |||||||||||||||||||
(in thousands) | ($ per ounce) | ($ per ounce) | ||||||||||||||||||||||
Six Months Ended June 30, | ||||||||||||||||||||||||
Ahafo | 276 | 239 | $ | 413 | $ | 425 | $ | 123 | $ | 138 |
(1) | Includes incremental start-up ounces of 16 for both the three and six months ended June 30, 2008 related to development of the Awonsu pit. | |
(2) | ExcludesAmortizationandAccretion. |
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Six Months Ended June 30, | ||||||||
2009 | 2008 | |||||||
North America: | ||||||||
Nevada | $ | 111 | $ | 140 | ||||
Hope Bay | 3 | 30 | ||||||
La Herradura | 19 | 12 | ||||||
133 | 182 | |||||||
South America: | ||||||||
Yanacocha | 62 | 81 | ||||||
Asia Pacific: | ||||||||
Boddington | 684 | 392 | ||||||
Jundee | 14 | 19 | ||||||
Tanami | 28 | 21 | ||||||
Kalgoorlie | 2 | 5 | ||||||
Other | 1 | — | ||||||
Waihi | 3 | 19 | ||||||
Batu Hijau | 23 | 54 | ||||||
755 | 510 | |||||||
Africa: | ||||||||
Ahafo | 23 | 60 | ||||||
Akyem | 1 | 1 | ||||||
24 | 61 | |||||||
Corporate and Other | 8 | 6 | ||||||
Accrual basis | 982 | 840 | ||||||
Change in accrual | (72 | ) | 53 | |||||
Cash basis | $ | 910 | $ | 893 | ||||
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2009 | 2010 | 2011 | 2012 | 2013 | Thereafter | |||||||||||||||||||
Batu Hijau | 479 | 779 | 670 | 651 | 639 | 231 | ||||||||||||||||||
Boddington | 61 | 220 | 226 | 226 | 160 | 551 | ||||||||||||||||||
Nevada | 48 | 50 | 46 | — | — | — | ||||||||||||||||||
588 | 1,049 | 942 | 877 | 799 | 782 | |||||||||||||||||||
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At June 30, 2009 | At December 31, 2008 | |||||||||||||||||||||||
Convertible Senior Notes Due | Convertible Senior Notes Due | |||||||||||||||||||||||
2012 | 2014 | 2017 | 2012 | 2014 | 2017 | |||||||||||||||||||
Additional paid-in capital | $ | 46 | $ | 97 | $ | 123 | $ | — | $ | 97 | $ | 123 | ||||||||||||
Principal amount | $ | 518 | $ | 575 | $ | 575 | $ | — | $ | 575 | $ | 575 | ||||||||||||
Unamortized debt discount | (66 | ) | (117 | ) | (166 | ) | — | (127 | ) | (174 | ) | |||||||||||||
Net carrying amount | $ | 452 | $ | 458 | $ | 409 | $ | — | $ | 448 | $ | 401 | ||||||||||||
At December 31, | ||||
2008 | ||||
Balance before application of FSP APB 14-1 | $ | 7 | ||
Impact of adoption of FSP APB 14-1 | (31 | ) | ||
Reclassification of dividends toAdditional paid-in capital | 28 | |||
Balance after application of FSP APB 14-1 | $ | 4 | ||
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ITEM 3. | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK (dollars in millions, except per ounce and per pound amounts). |
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Total/ | ||||||||||||||||||||
2009 | 2010 | 2011 | 2012 | Average | ||||||||||||||||
IDR Forward Purchase Contracts: | ||||||||||||||||||||
$(millions) | $ | 26 | $ | — | $ | — | $ | — | $ | 26 | ||||||||||
Average rate (IDR/$) | 10,717 | — | — | — | 10,717 | |||||||||||||||
IDR notional (millions) | 278,644 | — | — | — | 278,644 | |||||||||||||||
A$ Operating Forward Purchase Contracts: | ||||||||||||||||||||
$(millions) | $ | 223 | $ | 413 | $ | 200 | $ | 24 | $ | 860 | ||||||||||
Average rate ($/A$) | 0.77 | 0.75 | 0.70 | 0.68 | 0.74 | |||||||||||||||
A$ notional (millions) | 290 | 550 | 284 | 36 | 1,160 | |||||||||||||||
NZ$ Operating Forward Purchase Contracts: | ||||||||||||||||||||
$(millions) | $ | 20 | $ | 19 | $ | 1 | $ | — | $ | 40 | ||||||||||
Average rate ($/NZ$) | 0.63 | 0.59 | 0.54 | — | 0.61 | |||||||||||||||
NZ$ notional (millions) | 32 | 32 | 3 | — | 67 | |||||||||||||||
A$ Boddington Capital Forward Purchase Contracts: | ||||||||||||||||||||
$(millions) | $ | 156 | $ | — | $ | — | $ | — | $ | 156 | ||||||||||
Average rate ($/A$) | 0.79 | — | — | — | 0.79 | |||||||||||||||
A$ notional (millions) | 197 | — | — | — | 197 |
Expected Maturity Date | ||||||||||||||||
Total/ | ||||||||||||||||
2009 | 2010 | 2011 | Average | |||||||||||||
Diesel Forward Purchase Contracts: | ||||||||||||||||
$(millions) | $ | 22 | $ | 19 | $ | 4 | $ | 45 | ||||||||
Average rate ($/gallon) | 1.90 | 1.84 | 2.00 | 1.88 | ||||||||||||
Diesel gallons (millions) | 12 | 10 | 2 | 24 |
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Fair Values of Derivative Instruments | ||||||||||||||||
At June 30, 2009 | ||||||||||||||||
Other | Other | Other | Other | |||||||||||||
Current | Long-Term | Current | Long-Term | |||||||||||||
Assets | Assets | Liabilities | Liabilities | |||||||||||||
Foreign currency exchange contracts: | ||||||||||||||||
IDR operating forward purchase contracts | $ | 1 | $ | — | $ | — | $ | — | ||||||||
NZ$ operating forward contracts | 2 | 1 | 1 | — | ||||||||||||
A$ forward purchase contracts | 26 | 28 | 2 | 2 | ||||||||||||
Diesel forward contracts | 3 | 1 | 2 | — | ||||||||||||
Interest rate swap contracts | 2 | 5 | — | — | ||||||||||||
Total derivative instruments | $ | 34 | $ | 35 | $ | 5 | $ | 2 | ||||||||
Fair Values of Derivative Instruments | ||||||||||||||||
At December 31, 2008 | ||||||||||||||||
Other | Other | Other | Other | |||||||||||||
Current | Long-Term | Current | Long-Term | |||||||||||||
Assets | Assets | Liabilities | Liabilities | |||||||||||||
Foreign currency exchange contracts: | ||||||||||||||||
IDR operating forward purchase contracts | $ | — | $ | — | $ | 4 | $ | — | ||||||||
NZ$ operating forward contracts | — | — | 5 | 1 | ||||||||||||
A$ forward purchase contracts | 3 | 1 | 87 | 42 | ||||||||||||
A$ call option contracts | 1 | — | — | — | ||||||||||||
Diesel forward contracts | — | — | 15 | — | ||||||||||||
Interest rate swap contracts | 2 | 7 | — | — | ||||||||||||
Total derivative instruments | $ | 6 | $ | 8 | $ | 111 | $ | 43 | ||||||||
Foreign Currency | ||||||||||||||||
Exchange Contracts | Diesel Forward Contracts | |||||||||||||||
2009 | 2008 | 2009 | 2008 | |||||||||||||
For the three months ended June 30, | ||||||||||||||||
Cash flow hedging relationships: | ||||||||||||||||
Gain recognized in other comprehensive income (effective portion) | $ | 142 | $ | 48 | $ | 7 | $ | 2 | ||||||||
(Loss) gain reclassified from Accumulated other comprehensive income into income (effective portion)(1) | (9 | ) | 4 | (4 | ) | — | ||||||||||
$ | 133 | $ | 52 | $ | 3 | $ | 2 | |||||||||
For the six months ended June 30, | ||||||||||||||||
Gain recognized in other comprehensive income (effective portion) | $ | 118 | $ | 74 | $ | 4 | $ | 2 | ||||||||
(Loss) gain reclassified from Accumulated other comprehensive income into income (effective portion)(1) | (30 | ) | 6 | (11 | ) | — | ||||||||||
$ | 88 | $ | 80 | $ | (7 | ) | $ | 2 | ||||||||
(1) | The (loss) gain for the effective portion of cash flow hedges reclassified fromAccumulated other comprehensive income (loss)is recorded inCosts applicable to sales. |
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Interest Rate | 8 5/8% Debentures | |||||||||||||||
Swap Contracts | (Hedged Portion) | |||||||||||||||
2009 | 2008 | 2009 | 2008 | |||||||||||||
For the three months ended June 30, | ||||||||||||||||
Fair value hedging relationships: | ||||||||||||||||
Gain (loss) recognized in income (effective portion)(1) | $ | 1 | $ | 1 | $ | — | $ | (1 | ) | |||||||
(Loss) gain recognized in income (ineffective portion)(2) | (1 | ) | (3 | ) | (2 | ) | 2 | |||||||||
$ | — | $ | (2 | ) | $ | (2 | ) | $ | 1 | |||||||
For the six months ended June 30, | ||||||||||||||||
Fair value hedging relationships: | ||||||||||||||||
Gain (loss) recognized in income (effective portion)(1) | $ | 2 | $ | 1 | $ | (1 | ) | $ | (1 | ) | ||||||
(Loss) gain recognized in income (ineffective portion)(2) | (1 | ) | — | (3 | ) | 2 | ||||||||||
$ | 1 | $ | 1 | $ | (4 | ) | $ | 1 | ||||||||
(1) | The gain (loss) recognized for the effective portion of fair value hedges and the underlying hedged debt is included inInterest expense, net. | |
(2) | The ineffective portion recognized for fair value hedges and the underlying hedged debt is included inOther income, net. |
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 Securities Exchange Act of 1934, as amended (the “Exchange Act”)). 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 regarding required disclosure.
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(c) | (d) | |||||||||||||||
(a) | Total Number of | Maximum Number (or | ||||||||||||||
Total | (b) | Shares Purchased as | Approximate Dollar Value) of | |||||||||||||
Number | Average | Part of Publicly | Shares that may yet be | |||||||||||||
of Shares | Price Paid | Announced Plans or | Purchased under the Plans or | |||||||||||||
Period | Purchased | Per Share | Programs | Programs | ||||||||||||
April 1, 2009 through April 30, 2009 | — | — | — | N/A | ||||||||||||
May 1, 2009 through May 31, 2009 | 70 | (1) | $ | 39.95 | — | N/A | ||||||||||
June 1, 2009 through June 30, 2009 | — | — | — | N/A |
(1) | Represents shares delivered to the Company from restricted stock units held by a Company employee upon vesting for purpose of covering the recipient’s tax withholding obligations. |
1. | Elect directors, | ||
2. | Ratify the Audit Committee’s appointment of PricewaterhouseCoopers LLP as Newmont’s independent auditors for 2009, | ||
3. | Consider and act upon a Stockholder Proposal to approve Special Stockholder Meetings, giving holders of 10% of the Company’s outstanding common stock the power to call special stockholder meetings, and | ||
4. | Consider and act upon a Stockholder Proposal to approve Majority Voting for the Election of Directors in a Non-Contested Election. |
Name | Votes For | Votes Withheld | ||||||
Glen A. Barton | 385,308,115 | 6,281,606 | ||||||
Vincent. A. Calarco | 364,147,500 | 27,442,221 | ||||||
Joseph A. Carrabba | 385,744,274 | 5,845,447 | ||||||
Noreen Doyle | 367,694,910 | 23,894,811 | ||||||
Veronica M. Hagen | 384,513,370 | 7,076,351 | ||||||
Michael S. Hamson | 339,593,798 | 51,995,923 | ||||||
Robert J. Miller | 336,660,953 | 54,928,768 | ||||||
Richard T. O’Brien | 382,800,725 | 8,788,996 | ||||||
John B. Prescott | 339,111,379 | 52,478,342 | ||||||
Donald C. Roth | 385,336,811 | 6,252,910 | ||||||
James V. Taranik | 333,248,606 | 58,341,115 | ||||||
Simon R. Thompson | 387,974,436 | 3,615,285 |
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Votes For | 388,276,440 | |||
Votes Against | 2,856,291 | |||
Abstentions | 456,990 |
Votes For | 161,829,487 | |||
Votes Against | 183,781,842 | |||
Abstentions | 950,998 | |||
Broker Non-Votes | 45,027,394 |
Votes For | 162,177,494 | |||
Votes Against | 183,603,892 | |||
Abstentions | 780,991 | |||
Broker Non-Votes | 45,027,344 |
Item 5.02 | Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers. |
On July 21, 2009 the Company adopted the 2009 Senior Executive Compensation Program, covering the Chief Executive Officer, the Chief Financial Officer and certain other senior executives of the Company. Under this program, these senior executives are eligible for the award of financial performance shares. The target number of shares for each executive is determined by dividing a percentage of base salary by the average closing share price of the December prior to the performance year. Annual corporate performance metrics determine the percentage of the target shares that will be awarded at the end of the performance year, with vesting occurring over the three-year period beginning in the performance year. Senior executives are also eligible for a cash bonus based upon corporate performance metrics and, at the discretion of the Company’s Compensation Committee, a cash bonus for achievement of strategic objectives.
The foregoing summary of the Senior Executive Compensation Program is qualified in its entirety by reference to the complete text of the Senior Executive Compensation Program description, which is filed herewith as Exhibit 10.3 and incorporated by reference herein.
Item 5.03 | Amendment to Articles or Bylaws; Change in Fiscal Year. |
On July 22, 2009, the Company filed a Certificate of Elimination with the Secretary of State of Delaware eliminating the Certificate of Designations with respect to the Company’s $3.25 Convertible Preferred Stock (the “Convertible Preferred Stock”), which had been issued in connection with our merger with Battle Mountain Gold Company in 2001. In 2002, all of the shares of the Convertible Preferred Stock were redeemed by the Company and no shares of Convertible Preferred Stock are currently outstanding. A copy of the Certificate of Elimination is attached as Exhibit 3.1 to this Quarterly Report and incorporated by reference herein.
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Newmont Mining Corporation (Registrant) | ||||
Date: July 23, 2009 | /s/ RUSSELL BALL | |||
Russell Ball | ||||
Executive Vice President and Chief Financial Officer (Principal Financial Officer) |
Date: July 23, 2009 | /s/ ROGER P. JOHNSON | |||
Roger P. Johnson | ||||
Vice President and Chief Accounting Officer (Principal Accounting Officer) |
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Exhibit | ||||
Number | Description | |||
3.1 | Certificate of Elimination of $3.25 Convertible Preferred Stock of Registrant, filed herewith. | |||
10.1 | Annual Incentive Compensation Program of Registrant, as amended and restated effective January 1, 2009, filed herewith. | |||
10.2 | Employee Performance Incentive Compensation Program of Registrant, effective and restated January 1, 2009, filed herewith. | |||
10.3 | Senior Executive Compensation Program effective January 1, 2009, filed herewith. | |||
10.4 | Retention and Transition Agreement effective July 22, 2009, between Newmont USA Limited and Brant Hinze, filed herewith. | |||
12.1 | Computation of Ratio of Earnings to Fixed Charges, filed herewith. | |||
31.1 | Certification Pursuant to Rule 13A-14 or 15-D-14 of the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 signed by the Principal Executive Officer, filed herewith. | |||
31.2 | Certification Pursuant to Rule 13A-14 or 15-D-14 of the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 signed by the Chief Financial Officer, filed herewith. | |||
32.1 | Statement Required by 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 signed by Principal Executive Officer, filed herewith.(1) | |||
32.2 | Statement Required by 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 signed by Chief Financial Officer, filed herewith.(1) | |||
101 | The following materials from the Quarterly Report on Form 10-Q of Newmont Mining Corporation for the three and six months ended June 30, 2009, filed on July, 23, 2009, formatted in XBRL (eXtensible Business Reporting Language): (i) Consolidated Statements of Income, (ii) Consolidated Balance Sheets, (iii) Consolidated Statements of Cash Flows, (iv) document and entity information, and (v) related notes to these financial statements tagged as blocks of text. Users of this data are advised pursuant to Rule 401 of Regulation S-T that the financial information contained in the XBRL document is unaudited and these are not the officially publicly filed financial statements of Newmont Mining Corporation. The purpose of submitting these XBRL formatted documents is to test the related format and technology and, as a result, investors should continue to rely on the official filed version of the furnished documents and not rely on this information in making investment decisions. In accordance with Rule 402 of Regulation S-T, the information in this Exhibit 101 shall not be deemed “filed” for the purposes of section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liability of that section, and shall not be incorporated by reference into any registration statement or other document filed under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by the specific reference in such filing. |
(1) | This document is being furnished in accordance with SEC Release Nos. 33-8212 and 34-47551. |