Document and Company Informatio
Document and Company Information (USD $) | |||
6 Months Ended
Jun. 30, 2009 | Jul. 15, 2009
| Jun. 30, 2008
| |
Document And Company Information [Abstract] | |||
Entity Registrant Name | Newmont Mining Corporation | ||
Entity Central Index Key | 0001164727 | ||
Document Type | 10-Q | ||
Document Period End Date | 2009-06-30 | ||
Amendment Flag | false | ||
Amendment Description | N/A | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $23,670,310,860 | ||
Entity Common Stock, Shares Outstanding | 479,717,438 |
Consolidated Statements of Inco
Consolidated Statements of Income (USD $) | |||||||||||||||||||
In Millions | 3 Months Ended
Jun. 30, 2009 | 3 Months Ended
Jun. 30, 2008 | 6 Months Ended
Jun. 30, 2009 | 6 Months Ended
Jun. 30, 2008 | |||||||||||||||
Revenues | |||||||||||||||||||
Sales - gold, net | $1,373 | $1,320 | $2,748 | $2,813 | |||||||||||||||
Sales - copper, net | 229 | 183 | 390 | 615 | |||||||||||||||
Total revenues, net | 1,602 | 1,503 | 3,138 | 3,428 | |||||||||||||||
Costs and expenses | |||||||||||||||||||
Costs applicable to sales - gold | 635 | [1] | 645 | [1] | 1,289 | [1] | 1,277 | [1] | |||||||||||
Costs applicable to sales - copper | 61 | [1] | 104 | [1] | 146 | [1] | 254 | [1] | |||||||||||
Amortization | 176 | 183 | 367 | 362 | |||||||||||||||
Accretion | 8 | 8 | 17 | 16 | |||||||||||||||
Exploration | 51 | 58 | 92 | 97 | |||||||||||||||
Advanced projects, research and development | 42 | 39 | 73 | 69 | |||||||||||||||
General and administrative | 40 | 37 | 79 | 66 | |||||||||||||||
Other expense, net | 116 | 118 | 192 | 180 | |||||||||||||||
Total costs and expenses | 1,129 | 1,192 | 2,255 | 2,321 | |||||||||||||||
Other income (expense) | |||||||||||||||||||
Other income, net | 9 | 19 | 18 | 34 | |||||||||||||||
Interest expense, net | (23) | (35) | (55) | (63) | |||||||||||||||
Total other income (expense) | (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 | (136) | 42 | (241) | (187) | |||||||||||||||
Equity loss of affiliates | (3) | 0 | (8) | (5) | |||||||||||||||
Income from continuing operations | 320 | 337 | 597 | 886 | |||||||||||||||
(Loss) income from discontinued operations | (14) | 2 | (14) | 10 | |||||||||||||||
Net income | 306 | 339 | 583 | 896 | |||||||||||||||
Less: Net income attributable to noncontrolling interests | 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 | |||||||||||||||
Net income attributable to Newmont common stockholders | $162 | $271 | $351 | $636 | |||||||||||||||
Basic: | |||||||||||||||||||
Continuing operations | 0.35 | 0.6 | 0.75 | 1.38 | |||||||||||||||
Discontinued operations | -0.02 | 0 | -0.02 | 0.02 | |||||||||||||||
Income per common share, Basic | 0.33 | 0.6 | 0.73 | 1.4 | |||||||||||||||
Diluted: | |||||||||||||||||||
Continuing operations | 0.35 | 0.59 | 0.75 | 1.37 | |||||||||||||||
Discontinued operations | -0.02 | 0 | -0.02 | 0.02 | |||||||||||||||
Income per common share, Diluted | 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 | 0.1 | 0.1 | 0.2 | 0.2 | |||||||||||||||
[1]Exclusive of Amortization and Accretion. |
Consolidated Balance Sheets
Consolidated Balance Sheets (USD $) | ||
In Millions | Jun. 30, 2009
| Dec. 31, 2008
|
ASSETS | ||
Cash and cash equivalents | $544 | $435 |
Marketable securities and other short-term investments | 19 | 12 |
Trade receivables | 229 | 104 |
Accounts receivable | 283 | 214 |
Inventories | 481 | 507 |
Stockpiles and ore on leach pads | 318 | 290 |
Deferred income tax assets | 188 | 284 |
Other current assets | 395 | 455 |
Current assets | 2,457 | 2,301 |
Property, plant and mine development, net | 11,825 | 10,128 |
Investments | 902 | 655 |
Stockpiles and ore on leach pads | 1,326 | 1,136 |
Deferred income tax assets | 1,126 | 1,039 |
Other long-term assets | 218 | 207 |
Goodwill | 188 | 188 |
Assets of operations held for sale | 69 | 73 |
Total assets | 18,111 | 15,727 |
LIABILITIES | ||
Current portion of long-term debt | 221 | 165 |
Accounts payable | 310 | 411 |
Employee-related benefits | 162 | 170 |
Income and mining taxes | 90 | 61 |
Other current liabilities | 1,071 | 770 |
Current liabilities | 1,854 | 1,577 |
Long-term debt | 2,810 | 3,072 |
Reclamation and remediation liabilities | 721 | 699 |
Deferred income tax liabilities | 1,237 | 1,051 |
Employee-related benefits | 404 | 379 |
Other long-term liabilities | 277 | 252 |
Liabilities of operations held for sale | 54 | 36 |
Total liabilities | 7,357 | 7,066 |
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 | 10,754 | 8,661 |
Total liabilities and stockholders' equity | $18,111 | $15,727 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (USD $) | ||
In Millions | 6 Months Ended
Jun. 30, 2009 | 6 Months Ended
Jun. 30, 2008 |
Operating activities: | ||
Net income | $583 | $896 |
Adjustments: | ||
Amortization | 367 | 362 |
Loss (income) from discontinued operations | 14 | (10) |
Accretion of accumulated reclamation obligations | 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 | (177) | (259) |
Net cash provided from continuing operations | 886 | 971 |
Net cash provided from (used in) discontinued operations | 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 | 0 | (17) |
Proceeds from sale of marketable debt and equity securities | 5 | 17 |
Acquisitions, net | (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 | 0 | (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 | (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 |
Basis of Presentation
Basis of Presentation | |
6 Months Ended
Jun. 30, 2009 | |
Basis of Presentation [Abstract] | |
BASIS OF PRESENTATION | NOTE 1 BASIS OF PRESENTATION The interim Consolidated Financial Statements (interim statements) of Newmont Mining Corporation and its subsidiaries (collectively, Newmont or the Company) are unaudited. In the opinion of management, all adjustments and disclosures necessary for a fair presentation of these interim statements have been included. All adjustments are of a normal recurring nature except as discussed below. The Company has evaluated all subsequent events through July22, 2009 (see Note 29). The results reported in these interim statements are not necessarily indicative of the results that may be reported for the entire year. These interim statements should be read in conjunction with Newmonts Consolidated Financial Statements included in its Annual Report on Form 10-K/A for the year ended December31, 2008, filed June8, 2009. The year-end balance sheet data was derived from the audited financial statements, but does not include all disclosures required by U.S. generally accepted accounting principles (GAAP). Certain amounts for the three and six months ended June30, 2008 and at December31, 2008 have been revised. The Company retrospectively adopted FSP No.APB 14-1, Accounting for Convertible Debt Instruments That May be Settled in Cash upon Conversion (Including Partial Cash Settlement) (FSP APB 14-1), which requires an allocation of convertible debt proceeds between the liability component and the embedded conversion option (i.e., the equity component) (see Note 2). Additionally, the Company adopted FASB Statement No.160, Noncontrolling Interests in Consolidated Financial Statements an amendment of ARB No.51 (FAS 160), which requires the noncontrolling interests to be classified as a separate component of net income and stockholders equity. The Company has also reclassified the historical balance sheet, income statement and the cash flow amounts for the Kori Kollo operation in Bolivia to discontinued operations in the Consolidated Balance Sheets, Consolidated Statements of Income and Cash Flows for all periods presented. References to A$ refer to Australian currency, C$ to Canadian currency, IDR to Indonesian currency, NZ$ to New Zealand currency and $ to United States currency. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | |
6 Months Ended
Jun. 30, 2009 | |
Summary of Significant Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Recently Adopted Accounting Pronouncements Subsequent Events In May2009, the Financial Accounting Standards Board (FASB) issued FASB Statement No.165 Subsequent Events (FAS 165) which establishes accounting and reporting standards for events that occur after the balance sheet date but before financial statements are issued or are available to be issued. The statement sets forth (i)the period after the balance sheet date during which management of a reporting entity should evaluate events or transactions that may occur for potential recognition or disclosure in the financial statements, (ii)the circumstances under which an entity should recognize events or transactions occurring after the balance sheet in its financial statements, and (iii)the disclosures that an entity should make about events or transactions occurring after the balance sheet date in its financial statements. The Company adopted the provisions of FAS 165 for the interim period ended June30, 2009. The adoption of FAS 165 had no impact on the Companys consolidated financial position, results of operations or cash flows. Post-Retirement Benefit Plan In December2008, the FASB issued FSP No.FAS 132(R)-1, Employers Disclosures about Post-Retirement Benefit Plan Assets (FSP FAS 132(R)-1), which amends FASB Statement No.132 Employers Disclosures about Pensions and Other Post-Retirement Benefits (FAS 132), to provide guidance on an employers disclosures about plan assets of a defined benefit pension or other post-retirement plan. The objective of FSP FAS 132(R)-1 is to require more detailed disclosures about employers plan assets, including employers investment strategies, major categories of plan assets, concentrations of risk within plan assets, and valuation techniques used to measure the fair value of plan assets. The Company adopted the provisions of FSP FAS 132(R)-1 on January1, 2009. The provisions of this FSP are not required for earlier periods that are presented for comparative purposes. Equity Method Investment In November2008, the Emerging Issues Task Force (EITF) reached consensus on Issue No.08-6, Equity Method Investment Accounting Considerations (EITF 08-6), which clarifies the accounting for certain transactions and impairment considerations involving equity method investments. The intent of EITF 08-6 is to provide guidance on (i)determining the initial measurement of an equity method investment, (ii)recognizing other-than-temporary impairments of an equity method investment and (iii)accounting for an equity method investees issuance of shares. EITF 08-6 was effective for the Companys fiscal year beginning January1, 2009 and has been applied prospectively. The adoption of EITF 08-6 had no impact on the Companys consolidated financial position or results of operations. Equity-Linked Financial Instruments In June2008, the EITF reached consensus on Issue No.07-5, Determining Whether an Instrument (or Embedded Feature) Is Indexed to an Entitys Own Stock (EITF 07-5). EITF 07-5 clarifies the determination of whether an instrument (or an embedded feature) is indexed to an entitys own s |
Advanced Projects, Research and
Advanced Projects, Research and Develpoment | |
6 Months Ended
Jun. 30, 2009 | |
Advanced Projects Research And Development [Abstract] | |
ADVANCED PROJECTS, RESEARCH AND DEVELOPMENT | NOTE 3 ADVANCED PROJECTS, RESEARCH AND DEVELOPMENT 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 |
Other Expense, Net
Other Expense, Net | |
6 Months Ended
Jun. 30, 2009 | |
Other Expense, Net [Abstract] | |
OTHER EXPENSE, NET | NOTE 4 OTHER EXPENSE, NET 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 |
Other Income, Net
Other Income, Net | |
6 Months Ended
Jun. 30, 2009 | |
Other Income, Net [Abstract] | |
OTHER INCOME, NET | NOTE 5 OTHER INCOME, NET 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 |
Employee Pension and Other Bene
Employee Pension and Other Benefit Plans | |
6 Months Ended
Jun. 30, 2009 | |
Employee Pension and Other Benefit Plans [Abstract] | |
EMPLOYEE PENSION AND OTHER BENEFIT PLANS | NOTE 6 EMPLOYEE PENSION AND OTHER BENEFIT PLANS 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 For the three months ended June30, 2009 and 2008, no pension settlement losses were incurred. For the six months ended June30, 2009 and 2008, pension settlement losses of $nil and $11, respectively, related to senior management retirements were incurred. These costs were recorded in Other expense, net (see Note 4). |
Stock Based Compensation
Stock Based Compensation | |
6 Months Ended
Jun. 30, 2009 | |
Stock Based Compensation [Abstract] | |
STOCK BASED COMPENSATION | NOTE 7 STOCK BASED COMPENSATION The Company recognized stock option and other stock based compensation as follows: 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 For the three and six months ended June30, 2009 and 2008, 1,157,825 and 1,112,463 stock options, respectively, were granted at the weighted-average exercise price of $40 and $44, respectively, per underlying share of the Companys common stock. At June30, 2009, there was $25 of unrecognized compensation cost related to unvested stock options. This cost is expected to be recognized over a weighted-average period of approximately 2.4years. For the three months ended June30, 2009 and 2008, 198,057 and 3,855 shares of restricted stock units, respectively, were granted at the weighted average fair market value of $40 and $49, respectively per underlying share of the Companys common stock. For the six months ended June30, 2009 and 2008, 490,273 and 8,927 shares of restricted stock units, respectively, were granted, at the weighted-average fair market value of $42 and $49, respectively, per underlying share of the Companys common stock. No deferred stock awards were granted during the three and six months ended June30, 2009. For the three and six months ended June30, 2008, 393,533 deferred stock awards were granted at the weighted-average fair market value of $44 per underlying share of the Companys common stock. No restricted stock awards were granted during the three and six months ended June30, 2009. For the three and six months ended June30, 2008, 6,743 and 114,663 shares of restricted stock, respectively, were granted and issued, at the weighted-average fair market value of $44 and $48, respectively, per underlying share of the Companys common stock. |
Income Taxes
Income Taxes | |
6 Months Ended
Jun. 30, 2009 | |
Income Taxes [Abstract] | |
INCOME TAXES | NOTE 8 INCOME TAXES The Company operates in numerous countries around the world and accordingly it is subject to, and pays annual income taxes under, the various income tax regimes in the countries in which it operates. Some of these tax regimes are defined by contractual agreements with the local government, and others are defined by the general corporate income tax laws of the country. The Company has historically filed, and continues to file, all required income tax returns and has paid the taxes reasonably determined to be due. The tax rules and regulations in many countries are highly complex and subject to interpretation. From time to time, the Company is subject to a review of its historic income tax filings and in connection with such reviews, disputes can arise with the taxing authorities over the interpretation or application of certain rules to the Companys business conducted within the country involved. At June30, 2009, the Companys total unrecognized tax benefit was $173 for uncertain tax positions taken or expected to be taken on tax returns. Of this, $140 represents the amount of unrecognized tax benefits that, if recognized, would affect the Companys effective income tax rate. Also included in the balance at June30, 2009 are $6 of tax positions that, due to the impact of deferred tax accounting, the disallowance of which would not affect the annual effective tax rate. As a result of (i)statute of limitations that will begin to expire within the next 12months in various jurisdictions, and (ii)possible settlements of audit-related issues with taxing authorities in various jurisdictions, the Company believes that it is reasonably possible that the total amount of its net unrecognized income tax benefits will decrease by approximately $13 to $37 in the next 12months. |
Discontinued Operations
Discontinued Operations | |
6 Months Ended
Jun. 30, 2009 | |
Discontinued Operations [Abstract] | |
DISCONTINUED OPERATIONS | NOTE 9 DISCONTINUED OPERATIONS In June2009, Newmonts Board of Directors approved a plan to sell the Kori Kollo operation in Bolivia. Discontinued operations include the Companys Kori Kollo operation and the royalty portfolio and Pajingo operations, both sold in December2007. The Company has reclassified the historical balance sheet amounts and the income statement results to Assets and Liabilities of operations held for sale on the Condensed Consolidated Balance Sheets and to (Loss) income from discontinued operations in the Consolidated Statements of Income for all periods presented. The Consolidated Statements of Cash Flows have been reclassified for assets held for sale and discontinued operations for all periods presented. The following table details selected financial information included in the (Loss) income from discontinued operations in the consolidated statements of income: 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 The major classes of Assets and Liabilities of operations held for sale in the Consolidated Balance Sheets are as follows: 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 The following table details selected financial information included in Net cash provided from (used in) discontinued operations, Net cash used in investing activities of discontinued operations and Net cash used in financing activities of discontinued operations: 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 |
Noncontrolling Interests
Noncontrolling Interests | |
6 Months Ended
Jun. 30, 2009 | |
Noncontrolling Interests [Abstract] | |
NONCONTROLLING INTERESTS | NOTE 10 NONCONTROLLING INTERESTS The following table summarizes the net income attributable to the interests of entities not controlled by the Company, but consolidated in the Companys financial statements: 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 Newmont currently has a 45% ownership interest in Batu Hijau, held through NTP with an affiliate of Sumitomo Corporation of Japan (Sumitomo). Newmont has a 56.25% interest in NTP and the Sumitomo affiliate holds the remaining 43.75%. NTP in turn owns 80% of P.T. Newmont Nusa Tenggara (PTNNT), the Indonesian subsidiary that operates the Batu Hijau mine. Newmont identified NTP as a Variable Interest Entity as a result of certain capital structures and contractual relationships and has fully consolidated Batu Hijau in its consolidated financial statements since January1, 2004. The remaining 20% interest in PTNNT is owned by P.T. Pukuafu Indah (PTPI), an unrelated Indonesian company. NTPs interest in PTNNT is the subject of an international arbitration proceeding and a final award concerning PTNNTs interest was issued by the arbitration panel on March31, 2009. For further information concerning the arbitral award, see Note 27. Newmont has a 51.35% ownership interest in Yanacocha with the remaining interests held by Compaia de Minas Buenaventura, S.A.A. (43.65%) and the International Finance Corporation (5%). In April2008, the Company purchased 15,960 additional shares of European Gold Refineries SA joint venture (EGR) for $11 in cash increasing its ownership interest to 56.67% from 46.72%. Swiss residents and Mitsubishi International Corporation hold the remaining 43.33%. The acquisition of the additional interest resulted in the consolidation of EGR. In November2008, EGR repurchased 6.55% of its own shares from a minority shareholder bringing Newmonts ownership to 60.64%. Prior to consolidation, the Company accounted for EGR using the equity method of accounting. |
Income Per Common Share
Income Per Common Share | |
6 Months Ended
Jun. 30, 2009 | |
Income Per Common Share [Abstract] | |
INCOME PER COMMON SHARE | NOTE 11 INCOME PER COMMON SHARE Basic income per common share is computed by dividing income available to Newmont common stockholders by the weighted average number of common shares outstanding during the period. Diluted income per common share is computed similarly to basic income per common share except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potentially dilutive common shares had been issued. 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 In February2009, the Company completed a public offering of 34,500,000 shares of common stock at $37 per share for net proceeds of $1,234. Options to purchase 5.2million and 1.1million shares of common stock at average exercise prices of $46 and $55 were outstanding at June30, 2009 and 2008, respectively, but were not included in the computation of diluted weighted average number of common shares because the exercise prices of the options exceeded the price of the common stock. In July2007 and February2009, Newmont issued $1,150 and $518, respectively, of convertible notes that, if converted in the future, would have a potentially dilutive effect on the Companys stock. Under the indenture for the convertible notes, upon conversion Newmont is required to settle the principal amount of the convertible notes in cash and may elect to settle the remaining conversion obligation (stock price in excess of the conversion price) in cash, shares or a combination thereof. The effect on diluted earnings per share is calculated under the net share settlement method in accordance with the FASBs EITF Issue No.04-8, The Effect of Contingently Convertible Instruments on Diluted Earnings per Share. Under the net share settlement method, the Company includes the amount of shares it would take to satis |
Comprehensive Income
Comprehensive Income | |
6 Months Ended
Jun. 30, 2009 | |
Comprehensive Income [Abstract] | |
COMPREHENSIVE INCOME | NOTE 12 COMPREHENSIVE INCOME 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 |
Changes In Stockholders Equity
Changes In Stockholders Equity | |
1/1/2009 - 6/30/2009
| |
Changes In Stockholders' Equity [Abstract] | |
CHANGES IN STOCKHOLDERS' EQUITY | NOTE 13 CHANGES IN STOCKHOLDERS EQUITY 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 stockholdersequity $ 10,754 $ 10,343 |
Acquisitions
Acquisitions | |
6 Months Ended
Jun. 30, 2009 | |
Acquisitions [Abstract] | |
ACQUISITIONS | NOTE 14 ACQUISITIONS On June25, 2009, the Company completed the acquisition of the remaining 33.33% interest in Boddington from AngloGold Ashanti Australia Limited (AngloGold). The valuation date for the transaction is January1, 2009, and closing adjustments were made to reflect Newmonts economic ownership from that date. Consideration for the acquisition consists of $750 less an $8 closing adjustment paid in cash at closing, $240 payable in cash and/or Newmont common stock, at the Companys option, in December2009, and a contingent royalty capped at $100, equal to 50% of the average realized operating margin (Revenue less Costs applicable to sales on a by-product basis), if any, exceeding $600 per ounce, payable quarterly on one-third of gold sales from Boddington. The following table summarizes the consideration to acquire the remaining interest in Boddington: Cash $ 742 Cash and/or common shares 240 Contingent consideration (fair value) 62 $ 1,044 The Company estimates that the value of the contingent consideration is approximately $62, and has recognized this amount as part of the purchase price at the acquisition date. Amounts are payable under the contingent royalty beginning in the second quarter of 2010. The range of undiscounted amounts the Company could pay is between $0 and $100. The fair value of the contingent royalty recognized was estimated by applying the income approach. See Note 15 for a description of the key inputs used in deriving fair value. In connection with the acquisition, Newmont incurred transaction costs of $67 (shown in Other expense, net), including Australian stamp duties. $8 of these costs were paid during the first quarter of 2009. Additionally, in June2009, Newmont paid $182 to reimburse AngloGold for its share of capital and other expenditures of the project from January1, 2009 to June25, 2009. The reimbursement of capital expenditures is included in Property, plant and mine development, net, and as Additions to property, plant and mine development on the cash flow statement. The purchase price allocation based on the estimated fair values of assets acquired and liabilities assumed is as follows: 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 In association with the acquisition of the remaining 33.33% interest in Boddington, on February3, 2009, the Company completed a public offering of $518 convertible senior notes, including notes offered to cover over-allotments, maturing on February15, 2012 for net proceeds of $504 after deducting the underwriters discount and expenses of the offering (see Note 21). Additionally, on February3, 2009, the Company completed a public offering of 34,500,000 shares of common stock, including shares offered to cover over-allotme |
Fair Value Accounting
Fair Value Accounting | |
6 Months Ended
Jun. 30, 2009 | |
Fair Value Accounting [Abstract] | |
FAIR VALUE ACCOUNTING | NOTE 15 FAIR VALUE ACCOUNTING FAS 157 establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy under FAS 157 are described below: 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). The following table sets forth the Companys assets and liabilities measured at fair value on a recurring basis (at least annually) by level within the fair value hierarchy. As required by FAS 157, assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. 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 The Companys cash equivalent instruments are classified within Level 1 of the fair value hierarchy because they are valued using quoted market prices. The cash instruments that are valued based on quoted market prices in active markets are primarily money market securities and U.S. Treasury securities. The Companys marketable equity securities are valued using quoted market prices in active markets and as such are classified within Level 1 of the fair value hierarchy. The fair value of the marketable equity securities is calculated as the quoted market price of the marketable equity security multiplied by the quantity of shares held by the Company. The Companys corporate marketable debt securities are valued using quoted market prices in active markets and as such are classified within Level 1 of the fair value hierarchy. The Co |
Derivative Instruments
Derivative Instruments | |
6 Months Ended
Jun. 30, 2009 | |
Derivative Instruments [Abstract] | |
DERIVATIVE INSTRUMENTS | NOTE 16 DERIVATIVE INSTRUMENTS The Company is exposed to certain financial and market risks relating to its ongoing business operations. The primary risks managed by using derivative instruments are foreign currency exchange risk, diesel price risk, and interest rate risk. In accordance with FAS 133, the Company designated currency fixed forward and option contracts as cash flow hedges, diesel forward contracts as cash flow hedges, and interest rate swap contracts as fair value hedges of a fixed-rate borrowing. All of the derivative instruments were transacted for risk management purposes and qualify as hedging instruments under FAS 133. The maximum period over which hedged forecasted transactions are expected to occur is three years. Cash Flow Hedges Foreign Currency Contracts Newmont entered into a series of foreign currency contracts to reduce the variability of the US dollar amount of forecasted foreign currency expenditures caused by changes in currency rates. Newmont entered into IDR/$ forward purchase contracts to hedge up to 80% of the Companys IDR denominated operating expenditures which results in a blended IDR/$ rate realized each period. The hedges are forward purchase contracts with expiration dates ranging up to one year from the date of issue. The principal hedging objective is reduction in the volatility of realized period-on-period IDR/$ rates. For the three months ended June30, 2009 and 2008, the IDR/$ forward purchase contracts had no impact on Batu Hijau Costs applicable to sales. For the six months ended June30, 2009 and 2008, the IDR/$ forward purchase contracts increased Batu Hijau Costs applicable to sales by $2 and reduced Batu Hijau Costs applicable to sales by $1, respectively. As of June30, 2009, the Company has hedged 45% of its expected remaining 2009 IDR operating expenditures. Newmont implemented a multi-year layered program to hedge up to 85% of the Companys A$ denominated operating expenditures with forward contracts that have expiration dates ranging up to three years from the date of issue. The principal hedging objective is reduction in the volatility of realized period-on-period $/A$ rates. Each month, fixed forward contracts are obtained to hedge 1/36th of the forecasted monthly A$ operating cost exposure in the rolling three-year hedge period resulting in a blended $/A$ rate realized. For the three months ended June30, 2009 and 2008, the A$ operating hedge program increased Australia/New Zealand Costs applicable to sales by $9 and reduced Australia/New Zealand Costs applicable to sales by $4, respectively. For the six months ended June30, 2009 and 2008, the A$ operating hedge program increased Australia/New Zealand Costs applicable to sales by $25 and reduced Australia/New Zealand Costs applicable to sales by $5, respectively. As of June30, 2009, the Company has hedged 77% of its expected remaining 2009 A$ operating expenditures, and 53%, 27% and 7% of its expected 2010, 2011 and 2012 A$ operating expenditures, respectively. Newmont implemented a multi-year layered program to hedge up to 75% of the Companys NZ$ denominated operating expenditures with forward contracts tha |
Investments
Investments | |
6 Months Ended
Jun. 30, 2009 | |
Investments Disclosure [Abstract] | |
INVESTMENTS | NOTE 17 INVESTMENTS 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 During the second quarter of 2009, the Company did not recognize any impairments for other-than temporary declines in value, resulting in total impairments for the first half of 2009 of $2 for Shore Gold Inc. and $4 for other marketable equity securities. During the second quarter of 2008, the Company recognized impairments for other-than temporary declines in value of $23 for Shore Gold Inc. and $11 for other marketable securities, resulting in total impairments of $32 for Shore Gold Inc., $13 for Gabriel Resources Ltd. and $11 for other marketable securities for the first half of 2008. The following tables present the gross unrealized losses and fair value of the Companys investments with unrealized losses that are not deemed to be other-than-temporarily impaired, aggregated |
Inventories
Inventories | |
6 Months Ended
Jun. 30, 2009 | |
Inventories [Abstract] | |
INVENTORIES | NOTE 18 INVENTORIES 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 During the first half of 2009, the Company recorded write-downs of $4 to reduce the carrying value of material and supplies inventories to net realizable value, primarily related to Nevada. Inventory write-downs are classified as components of Costs applicable to sales. |
Stockpiles and Ore on Leach Pad
Stockpiles and Ore on Leach Pads | |
6 Months Ended
Jun. 30, 2009 | |
Stockpiles and Ore on Leach Pads [Abstract] | |
STOCKPILES AND ORE ON LEACH PADS | NOTE 19 STOCKPILES AND ORE ON LEACH PADS 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 |
Other Assets
Other Assets | |
6 Months Ended
Jun. 30, 2009 | |
Other Assets [Abstract] | |
OTHER ASSETS | NOTE 20 OTHER ASSETS 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 |
Debt
Debt | |
6 Months Ended
Jun. 30, 2009 | |
Debt [Abstract] | |
DEBT | NOTE 21 DEBT 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 During the first quarter of 2009, the Company repaid all borrowings under its $2,000 revolving credit facility and completed a public offering of $518 convertible senior notes maturing on February15, 2012 for net proceeds of $504. The notes will pay interest semi-annually at a rate of 3.0% per annum and the effective interest rate is 8.5%. The notes are convertible, at the holders option, equivalent to a conversion price of $46.25 per share of common stock. The portion of the proceeds related to the conversion feature has been recognized as additional paid-in capital. The Company retrospectively applied FSP APB 14-1 to the 2014 and 2017 convertible senior notes (Note 2). During the first quarter of 2009, PTNNT shareholders loaned an additional $124 to PTNNT. Total principal outstanding under the shareholder loans was $165 and $41 as of June30, 2009 and December 31, 2008, respectively. At June30, 2009 and December31, 2008, 43.75% or approximately $72 and $18, respectively, were due to Nusa Tenggara Mining Corporation, an affiliate of Sumitomo Mining Corporation, an unrelated third party, and was non-recourse to Newmont, with the remainder payable to Newmont. As discussed in Note 27, the Company has agreed to provide a joint and several guarantee for the payment of principal and interest amounts associated with the PTNNT project financing facility, which was non-recourse to Newmont at December31, 2008. During the second quarter of 2009, Newmont borrowed net proceeds of $100 under its $2,000 senior revolving credit facility. Scheduled minimum debt repayments at June30, 2009 are $134 for the remainder of 2009, $157 in 2010, $334 in 2011, $697 in 2012, $116 in 2013 and $1,593 thereafter. |
Other Liabilities
Other Liabilities | |
6 Months Ended
Jun. 30, 2009 | |
Other Liabilities [Abstract] | |
OTHER LIABILITIES | NOTE 22 OTHER LIABILITIES 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 |
Reclamation and Remediation Lia
Reclamation and Remediation Liabilities (Asset Retirement Obligations) | |
6 Months Ended
Jun. 30, 2009 | |
Reclamation and Remediation Liabilities (Asset Retirement Obligations) [Abstract] | |
RECLAMATION AND REMEDIATION LIABILITIES (ASSET RETIREMENT OBLIGATIONS) | NOTE 23 RECLAMATION AND REMEDIATION LIABILITIES (ASSET RETIREMENT OBLIGATIONS) At June30, 2009 and December31, 2008, $619 and $594, respectively, were accrued for reclamation obligations relating to mineral properties in accordance with SFAS No.143, Accounting for Asset Retirement Obligations. In addition, the Company is involved in several matters concerning environmental obligations associated with former, primarily historic, mining activities. Generally, these matters concern developing and implementing remediation plans at the various sites involved. At June30, 2009 and December31, 2008, $157 and $163, respectively, were accrued for such obligations. These amounts are also included in Reclamation and remediation liabilities. The following is a reconciliation of the liability for asset retirement obligations: 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 The current portions of Reclamation and remediation liabilities of $55 and $58 at June30, 2009 and December31, 2008, respectively, are included in Other current liabilities. The Companys reclamation and remediation expenses consisted of: 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 |
Net Change in Operating Assets
Net Change in Operating Assets and Liabilities | |
6 Months Ended
Jun. 30, 2009 | |
Net Change in Operating Assets and Liabilities [Abstract] | |
NET CHANGE IN OPERATING ASSETS AND LIABILITIES | NOTE 24 NET CHANGE IN OPERATING ASSETS AND LIABILITIES Net cash provided from operations attributable to the net change in operating assets and liabilities is composed of the following: 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 ) |
Segment Information
Segment Information | |
6 Months Ended
Jun. 30, 2009 | |
Segment Information [Abstract] | |
SEGMENT INFORMATION | NOTE 25 SEGMENT INFORMATION The Companys reportable segments are based upon the Companys management organization structure that is focused on the geographic region for the companys operations. Segment results for 2008 have been retrospectively revised to reflect an organizational change, effective in the first quarter of 2009, that (i)moved the results of the La Herradura operation in Mexico to North America from Other and (ii)combined the management of exploration and advanced projects activities under one executive and assigned the legacy exploration segment to the regional reportable segments. As a result of managements decision to dispose of the Kori Kollo operation in Bolivia, Kori Kollo has been reclassified to discontinued operations. Financial information relating to Newmonts segments is as follows: 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 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 |
Consolidating Financial Stateme
Consolidating Financial Statements | |
6 Months Ended
Jun. 30, 2009 | |
Consolidating Financial Statements [Abstract] | |
CONSOLIDATING FINANCIAL STATEMENTS | NOTE 26 CONSOLIDATING FINANCIAL STATEMENTS Newmont USA, a 100% owned subsidiary of Newmont Mining Corporation, has fully and unconditionally guaranteed the 5 7/8% publicly traded notes. The following consolidating financial statements are provided for Newmont USA, as guarantor, and for Newmont Mining Corporation, as issuer, as an alternative to providing separate financial statements for the guarantor. The accounts of Newmont Mining Corporation are presented using the equity method of accounting for investments in subsidiaries. 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 Accreti |
Commitments and Contingencies
Commitments and Contingencies | |
6 Months Ended
Jun. 30, 2009 | |
Commitments and Contingencies [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 27 COMMITMENTS AND CONTINGENCIES General The Company follows FASB Statement No.5, Accounting for Contingencies, in determining its accruals and disclosures with respect to loss contingencies other than tax contingencies provided for in accordance with FIN 48 (see Note 8). Accordingly, estimated losses from loss contingencies are accrued by a charge to income when information available prior to issuance of the financial statements indicates that it is probable (greater than a 75% probability) that a liability could be incurred and the amount of the loss can be reasonably estimated. Legal expenses associated with the contingency are expensed as incurred. If a loss contingency is not probable or reasonably estimable, disclosure of the loss contingency is made in the financial statements when it is at least reasonably possible that a material loss could be incurred. Operating Segments The Companys operating segments are identified in Note 25. Except as noted in this paragraph, all of the Companys commitments and contingencies specifically described in this Note 27 relate to the Corporate and Other reportable segment. The Nevada Operations matters under Newmont USA Limited relate to the North America reportable segment. The PT Newmont Minahasa Raya matters relate to the Asia Pacific reportable segment. The Yanacocha matters relate to the South America reportable segment. The Newmont Yandal Operations Pty Limited matter relates to the Asia Pacific reportable segment. The PTNNT matters relate to the Asia Pacific reportable segment. Environmental Matters The Companys mining and exploration activities are subject to various laws and regulations governing the protection of the environment. These laws and regulations are continually changing and are generally becoming more restrictive. The Company conducts its operations so as to protect the public health and environment and believes its operations are in compliance with applicable laws and regulations in all material respects. The Company has made, and expects to make in the future, expenditures to comply with such laws and regulations, but cannot predict the full amount of such future expenditures. Estimated future reclamation costs are based principally on legal and regulatory requirements. At June30, 2009 and December31, 2008, $619 and $594, respectively, were accrued for reclamation costs relating to mineral properties in accordance with FASB Statement No.143, Accounting for Asset Retirement Obligations. The current portions of $55 and $58 at June30, 2009 and December 31, 2008, respectively, are included in Other current liabilities. In addition, the Company is involved in several matters concerning environmental obligations associated with former mining activities. Generally, these matters concern developing and implementing remediation plans at the various sites involved. The Company believes that the related environmental obligations associated with these sites are similar in nature with respect to the development of remediation plans, their risk profile and the compliance required to meet general environmental standards. Based upon the Companys best estimate |
Supplementary Data
Supplementary Data | |
6 Months Ended
Jun. 30, 2009 | |
Supplementary Data [Abstract] | |
SUPPLEMENTARY DATA | NOTE 28 SUPPLEMENTARY DATA Ratio of Earnings to Fixed Charges The ratio of earnings to fixed charges for the six months ended June30, 2009 was 9.0. The ratio of earnings to fixed charges represents income from continuing operations before income tax expense, equity loss of affiliates and noncontrolling interests in subsidiaries, divided by interest expense. Interest expense includes amortization of capitalized interest and the portion of rent expense representative of interest. Interest expense does not include interest on income tax liabilities. The computation of the ratio of earnings to fixed charges can be found in Exhibit 12.1. |
Subsequent Events
Subsequent Events | |
6 Months Ended
Jun. 30, 2009 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 29 SUBSEQUENT EVENTS On July17, 2009, the Company sold its interest in Empresa Minera Inti Raymi (Inti Raymi) in Bolivia to Compania Procesadora de Minerales S.A., a company controlled by the Companys long-time Bolivian partner. As part of the transaction, a reclamation trust fund will be established to pay for closure and reclamation costs when operations eventually cease. The buyer assumed all obligations of the operation and has agreed to pay Newmont a nominal royalty from future production. With the sale of Inti Raymi, Newmont has no remaining operations in Bolivia (see Note 9). |