Exhibit 99.2
NEWMONT MINING CORPORATION AND SUBSIDIARIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES AND PREFERRED DIVIDENDS
(Amounts in millions except ratio)
The ratio of earnings to fixed charges represents income from continuing operations before income taxes, minority interest, equity income (loss) of affiliates and cumulative effect of changes in accounting principles, divided by interest expense. Interest expense includes amortization of capitalized interest and the portion of rent expense representative of interest. The financial information of all prior periods has been reclassified to reflect discontinued operations.
Years Ended December 31, | ||||||||||||||||
2006 | 2005 | 2004 | 2003 | 2002 | ||||||||||||
Earnings: | ||||||||||||||||
Income from continuing operations before income tax expense and accounting change (1) | $ | 1,231 | $ | 915 | $ | 1,068 | $ | 595 | $ | 115 | ||||||
Adjustments: | ||||||||||||||||
Fixed charges added to earnings | 103 | 101 | 101 | 91 | 131 | |||||||||||
Dividends from equity affiliates | 1 | — | 2 | 2 | — | |||||||||||
Preferred dividends | — | — | — | — | (6 | ) | ||||||||||
Amortization of capitalized interest | 13 | 16 | 16 | 9 | 9 | |||||||||||
$ | 1,348 | $ | 1,032 | $ | 1,187 | $ | 697 | $ | 249 | |||||||
Fixed Charges: | ||||||||||||||||
Net interest expense(2) | $ | 97 | $ | 97 | $ | 97 | $ | 88 | $ | 128 | ||||||
Portion of rental expense representative of interest | 6 | 4 | 4 | 3 | 3 | |||||||||||
Fixed charges added to earnings | 103 | 101 | 101 | 91 | 131 | |||||||||||
Capitalized interest | 57 | 39 | 13 | 9 | 5 | |||||||||||
Preferred dividends | — | — | — | — | 6 | |||||||||||
$ | 160 | $ | 140 | $ | 114 | $ | 100 | $ | 142 | |||||||
Ratio of earnings to fixed charges | 8.4 | 7.4 | 10.4 | 7.0 | 1.8 |
(1) | Income (loss) from continuing operations before income tax expense, minority interest, equity income (loss) of affiliates and cumulative effect of a change in accounting principle. |
(2) | Includes interest expense of majority-owned subsidiaries and amortization of debt issuance costs. |