Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2016 | Jul. 13, 2016 | |
Document And Entity Information | ||
Entity Registrant Name | NEWMONT MINING CORP /DE/ | |
Entity Central Index Key | 1,164,727 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2016 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q2 | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 530,594,563 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | ||
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) | |||||
Sales | $ 2,038 | $ 1,908 | $ 4,070 | $ 3,880 | |
Costs and expenses | |||||
Costs applicable to sales | [1] | 1,059 | 1,027 | 2,140 | 2,054 |
Depreciation and amortization | 314 | 276 | 636 | 565 | |
Reclamation and remediation (Note 5) | 25 | 26 | 50 | 49 | |
Exploration | 38 | 48 | 68 | 81 | |
Advanced projects, research and development | 44 | 33 | 72 | 61 | |
General and administrative | 64 | 68 | 121 | 126 | |
Other expense, net | 19 | 27 | 37 | 44 | |
Total costs and expenses | 1,563 | 1,505 | 3,124 | 2,980 | |
Other income (expense) | |||||
Other income, net | (23) | 98 | (12) | ||
Interest expense, net | (71) | (82) | (150) | (167) | |
Total other income (expense) | (71) | (105) | (52) | (179) | |
Income (loss) before income and mining tax and other items | 404 | 298 | 894 | 721 | |
Income and mining tax benefit (expense) (Note 6) | (310) | (152) | (634) | (345) | |
Equity income (loss) of affiliates | (5) | (7) | (10) | (16) | |
Income (loss) from continuing operations | 89 | 139 | 250 | 360 | |
Income (loss) from discontinued operations | (27) | 9 | (53) | 17 | |
Net income (loss) | 62 | 148 | 197 | 377 | |
Net loss (income) attributable to noncontrolling interests (Note 7) | (39) | (76) | (122) | (122) | |
Net income (loss) attributable to Newmont stockholders | 23 | 72 | 75 | 255 | |
Net income (loss) attributable to Newmont stockholders: | |||||
Continuing operations | 50 | 63 | 128 | 238 | |
Discontinued operations | (27) | 9 | (53) | 17 | |
Net income (loss) attributable to Newmont stockholders | $ 23 | $ 72 | $ 75 | $ 255 | |
Income (loss) per common share, Basic (Note 8): | |||||
Continuing operations | $ 0.09 | $ 0.13 | $ 0.24 | $ 0.48 | |
Discontinued operations | (0.05) | 0.01 | (0.10) | 0.03 | |
Income (loss) per common share, basic | 0.04 | 0.14 | 0.14 | 0.51 | |
Income (loss) per common share, Diluted (Note 8) | |||||
Continuing operations | 0.09 | 0.13 | 0.24 | 0.48 | |
Discontinued operations | (0.05) | 0.01 | (0.10) | 0.03 | |
Income (loss) per common share, diluted | 0.04 | 0.14 | 0.14 | 0.51 | |
Cash dividends declared per common share | $ 0.025 | $ 0.025 | $ 0.050 | $ 0.050 | |
[1] | Excludes Depreciation and amortization and Reclamation and remediation. |
CONDENSED CONSOLIDATED STATEME3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Comprehensive income (loss) attributable to: | ||||
Net income (loss) | $ 62 | $ 148 | $ 197 | $ 377 |
Other comprehensive income (loss): | ||||
Unrealized gain (loss) on marketable securities, net of $nil, $nil, $nil and $nil tax benefit (expense), respectively | 21 | (8) | (56) | (7) |
Foreign currency translation adjustments | 4 | 5 | 7 | (5) |
Change in pension and other post-retirement benefits, net of $nil, $(20), $(2) and $(22) tax benefit (expense), respectively | 4 | 39 | 7 | 44 |
Change in fair value of cash flow hedge instruments, net of $(7), $(7), $(15) and $(3) tax benefit (expense), respectively | 16 | 16 | 35 | 6 |
Other comprehensive income (loss) | 45 | 52 | (7) | 38 |
Comprehensive income (loss) | 107 | 200 | 190 | 415 |
Comprehensive income (loss) attributable to: | ||||
Newmont stockholders | 68 | 124 | 68 | 293 |
Noncontrolling interests | 39 | 76 | 122 | 122 |
Comprehensive income (loss) | $ 107 | $ 200 | $ 190 | $ 415 |
CONDENSED CONSOLIDATED STATEME4
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ||||
Unrealized gain (loss) on marketable securities, tax benefit (expense) | ||||
Change in pension and other post-retirement benefits, tax benefit (expense) | 20 | 2 | 22 | |
Change in fair value of cash flow hedge instruments, tax benefit (expense) | $ (7) | $ (7) | $ (15) | $ (3) |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Operating activities: | ||
Net income (loss) | $ 197 | $ 377 |
Adjustments: | ||
Depreciation and amortization | 636 | 565 |
Stock-based compensation | 37 | 40 |
Reclamation and remediation | 48 | 47 |
Loss (income) from discontinued operations | 53 | (17) |
Impairment of investments | 0 | 73 |
Deferred income taxes | 441 | 130 |
Gain on asset and investment sales, net | (104) | (43) |
Other operating adjustments and impairments | 181 | 165 |
Net change in operating assets and liabilities (Note 20) | (185) | (268) |
Net cash provided by continuing operating activities | 1,304 | 1,069 |
Net cash used in discontinued operations | (5) | (6) |
Net cash provided by operating activities | 1,299 | 1,063 |
Investing activities: | ||
Additions to property, plant and mine development | (591) | (606) |
Proceeds from sales of investments | 184 | 29 |
Proceeds from sale of other assets | 8 | 44 |
Other | (6) | (6) |
Net cash used in investing activities | (405) | (539) |
Financing activities: | ||
Repayment of debt | (641) | (281) |
Proceeds from stock issuance, net | 675 | |
Proceeds from sale of noncontrolling interests | 37 | |
Funding from noncontrolling interests | 50 | 62 |
Dividends paid to noncontrolling interests | (146) | (3) |
Dividends paid to common stockholders | (27) | (23) |
Increase in restricted cash, net | (13) | (59) |
Other | (1) | (8) |
Net cash (used in) provided by financing activities | (778) | 400 |
Effect of exchange rate changes on cash | 4 | (19) |
Net change in cash and cash equivalents | 120 | 905 |
Cash and cash equivalents at beginning of period | 2,782 | 2,403 |
Cash and cash equivalents at end of period | $ 2,902 | $ 3,308 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
ASSETS | ||
Cash and cash equivalents | $ 2,902 | $ 2,782 |
Trade receivables | 315 | 260 |
Other accounts receivables | 194 | 185 |
Investments (Note 13) | 46 | 19 |
Inventories (Note 14) | 728 | 710 |
Stockpiles and ore on leach pads (Note 15) | 953 | 896 |
Other current assets | 156 | 131 |
Current assets | 5,294 | 4,983 |
Property, plant and mine development, net | 14,234 | 14,303 |
Investments (Note 13) | 237 | 402 |
Stockpiles and ore on leach pads (Note 15) | 2,956 | 3,000 |
Deferred income tax assets | 1,264 | 1,718 |
Other non-current assets | 718 | 730 |
Total assets | 24,703 | 25,136 |
LIABILITIES | ||
Debt (Note 16) | 196 | 149 |
Accounts payable | 348 | 396 |
Employee-related benefits | 211 | 293 |
Income and mining taxes payable | 126 | 38 |
Other current liabilities (Note 17) | 479 | 540 |
Current liabilities | 1,360 | 1,416 |
Debt (Note 16) | 5,375 | 6,041 |
Reclamation and remediation liabilities (Note 5) | 1,835 | 1,800 |
Deferred income tax liabilities | 926 | 840 |
Employee-related benefits | 463 | 437 |
Other non-current liabilities (Note 17) | 361 | 310 |
Total liabilities | 10,320 | 10,844 |
EQUITY | ||
Common stock | 849 | 847 |
Additional paid-in capital | 9,457 | 9,427 |
Accumulated other comprehensive income (loss) (Note 19) | (341) | (334) |
Retained earnings | 1,458 | 1,410 |
Newmont stockholders' equity | 11,423 | 11,350 |
Noncontrolling interests | 2,960 | 2,942 |
Total equity (Note 18) | 14,383 | 14,292 |
Total liabilities and equity | $ 24,703 | $ 25,136 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 6 Months Ended |
Jun. 30, 2016 | |
BASIS OF PRESENTATION | |
BASIS OF PRESENTATION | NOTE 1 BASIS OF PRESENTATIO N The interim Condensed 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 (including normal recurring adjustments) and disclosures necessary for a fair presentation of these interim statements have been included. 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 Newmont’s Consolidated Financial Statements for the year ended December 31, 2015 filed on February 17, 2016 on Form 10-K. The year-end balance sheet data was derived from the audited financial statements and, in accordance with the instructions to Form 10-Q, certain information and footnote disclosures required by United States (U.S.) generally accepted accounting principles (“GAAP”) have been condensed or omitted. References to “A$” refers to Australian currency and “C$” refers to Canadian currency. On June 30, 2016, Nusa Tenggara Partnership B.V. (owned 56.25% by the Company and 43.75% by Nusa Tenggara Mining Corporation, majority owned by Sumitomo Corporation) entered into a binding share sale and purchase agreement with PT Amman Mineral Internasional (“PTAMI”) to sell its 56% ownership interest in PT Newmont Nusa Tenggara (“PTNNT”), which operates the Batu Hijau copper and gold mine (“Batu Hijau”) in Indonesia. In addition, NVL (USA) Limited (“NVL”), a wholly owned subsidiary of the Company, (i) entered into a binding agreement to sell a loan made to PT Pukuafu Indah (“PTPI”), secured by PTPI’s 17.8% interest in PTNNT, to PTAMI, and (ii) consented to PT Indonesia Masabaga Investama (“PTIMI”) selling its 2.2% interest in PTNNT to PTAMI with sale proceeds applied toward repayment of an NVL loan to PTIMI. Through these transactions, Newmont will effectively sell its 48.5% economic interest in PTNNT to PTAMI and will have no remaining interest. The sales proceeds to be received by the Company for its 48.5% economic interest in PTNNT includes $920 in cash to be received at closing, as well as contingent payments totaling up to $403 . The contingent payments of up to $403 include (i) a Metal Price Upside deferred payment of up to $133 , (ii) an Elang Development deferred payment totaling $118 and (iii) a Contingent Payment of up to $152 . The contingent payment amounts are determined based on certain metal price, shipment or project development criteria, as described below. The Metal Price Upside contingent payment of up to $133 is payable for any quarter in which the London Metal Exchange (“LME”) quarterly average copper price exceeds $3.75 per pound. It is calculated as 30% of the product of (i) the difference between the LME quarterly average copper price and $3.75 and (ii) 96.5% of the total pounds of copper contained in shipments of mineral products mined or produced from Batu Hijau that arrived in buyers’ or customers’ designated port for delivery during the previous quarter. The Elang Development contingent payment totaling $118 is payable no later than the first anniversary of the first shipment of any form of saleable copper, gold or silver product produced from the Elang development area. The Contingent Payment of up to $152 is payable (i) as a payment of $76 if in any year after 2022 in which there is production from Phase 7 of the Batu Hijau mine and the LME annual average copper price is $2.75 or more per pound and (ii) if the full Contingent Payment amount has not already been paid, a payment of $76 in any year after both the second anniversary of the first shipment of concentrate produced from the Elang development area and December 31, 2023 in which the LME annual average copper price in respect to such year is $3.25 or more per pound. The sale of the Company’s economic interest in PTNNT is subject to customary representations, warranties and covenants by the parties, and is subject to various closing conditions, including (i) obtaining approval of the Indonesian Ministry of Energy and Mineral Resources and the Indonesian Investment Coordinating Board in respect of the transfer of shares to PTAMI, and other required governmental consents and approvals; (ii) PTNNT holding a valid export license at closing; (iii) concurrent closing of PT Multi Daerah Bersaing’s (“PTMDB”) sale of its approximately 24% stake in PTNNT to PTAMI; (iv) obtaining approval of the shareholders of PTNNT for the transfer of shares in PTNNT to PTAMI and the appointment of directors nominated by PTAMI; (v) no material adverse events having occurred, including (a) an event that causes significant interruption of mining or milling operations of PTNNT for three months or longer, (b) laws or regulations that prevent PTNNT from exporting its production outside of Indonesia for three months or longer, (c) the revocation or termination of PTNNT’s mineral rights and mining concessions with the Republic of Indonesia, and (d) any revocation, termination or suspension of PTNNT’s export license; and (vi) the satisfaction or waiver of the conditions precedent in other transaction and finance-related agreements, including the resolution of certain tax matters pertaining to PTNNT shareholder PTPI. The completion of the sale is subject to the closing conditions noted above, some of which are outside the control of the Company. Assuming the resolution of the closing conditions, the transaction is anticipated to close in the third quarter of 2016. Based on the agreement to sell the economic interest in PTNNT, the Company evaluated the criteria under ASC 360 for classifying an asset as held for sale and concluded that as of June 30, 2016, PTNNT does not meet the criteria to be treated as an asset held for sale and will not be presented as a discontinued operation. The Batu Hijau mine, which constitutes 15% of the Company’s total assets at June 30, 2016 , is included in the Asia Pacific segment in the condensed consolidated financial statements. Refer to Note 7 for details on Batu Hijau’s financial position. The Company expects to record a loss on the sale of its economic interest in PTNNT of approximately $500 upon closing of the transaction. The expected loss does not currently include the $403 of contingent consideration described above due to the uncertainty in valuing the amounts. As part of the Company’s asset impairment evaluation procedures at June 30, 2016 , and in accordance with ASC 360, the Company has determined that the agreement to sell the economic interest in PTNNT was a triggering event that required the Company to evaluate the recoverability of the long-lived assets of PTNNT. Based on the evaluation of the probability weighted cash flows of either selling the economic interest in PTNNT or continuing to operate PTNNT as an asset held for use, the Company determined that no impairment was required at June 30, 2016 . The Company has reclassified certain prior period amounts to conform to the 2016 presentation including the following items : The Company retrospectively adopted Accounting Standards Update (“ASU”) 2015-03, which requires debt issuance costs to be presented as a deduction from the corresponding debt liability. Refer to Note 2 for further details. The Company reclassified regional administrative and community development costs of $17 and $8 from Other expense, net to General and administrative and Costs applicable to sales , respectively, for the three months ended June 30, 2015 , and $31 and $16 , respectively, for the six months ended June 30, 2015 . |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Jun. 30, 2016 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Risks and Uncertainties As a global mining company, the Company’s revenue, profitability and future rate of growth are substantially dependent on prevailing prices for gold, copper and, to a lesser extent, silver. Historically, the commodity markets have been very volatile and there can be no assurance that commodity prices will not be subject to wide fluctuations in the future. A substantial or extended decline in commodity prices could have a material adverse effect on the Company’s financial position, results of operations, cash flows, access to capital and the quantities of reserves that the Company can economically produce. The carrying value of the Company’s Property, plant and mine development , net; Inventories; Stockpiles and ore on leach pads and Deferred income tax assets are sensitive to the outlook for commodity prices. A decline in the Company’s long-term price outlook from current levels could result in material impairment charges related to these assets. On June 30, 2016, the Company, through its subsidiaries, entered into agreements to sell its 48.5% economic interest in PTNNT, which operates the Batu Hijau copper and gold mine in Indonesia. The closing of the sale is subject to various closing conditions, some of which are outside the control of the Company, and if not satisfied could result in the sale of PTNNT not being completed. See Note 1 above for a detailed description of the closing conditions specified in the share sale and purchase agreement . In September 2014, PTNNT and the Government of Indonesia signed a Memorandum of Understanding (“MoU”) that resulted in the government agreeing to issue permits to allow PTNNT to export and sell copper concentrates from the Batu Hijau mine. The government then issued several six -month export permits since then, with the most recent permit renewal expected to expire in November 2016. Additionally, negotiations between PTNNT and the Government of Indonesia to amend the Contract of Work (the investment agreement entered into by PTNNT and the Indonesian government in 1986, which includes the right to export copper concentrates and a prohibition against new taxes, duties, and levies) remained on-going at the time that the Company entered into the agreement to sell its interest in PTNNT. In the event that the sale of the Company’s interest does not close prior to November 2016 or does not close at all, no assurances can be made with respect to the outcome of the Contract of Work negotiations and the renewal of the export permit. The failure to receive a timely renewal may negatively impact future operations and financial results a t Batu Hijau. As a result of the on-going Contract of Work renegotiations at Batu Hijau, the need for asset impairments, inventory write-downs, tax valuation allowances and other applicable accounting charges will continue to be evaluated. At this time, the Company expects operations to continue into the future until the previously announced sale closes. The total assets at Batu Hijau as of June 30, 2016 and December 31, 2015 were $3,746 and $3,4 83 , respectively. The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the accounting for and recognition and disclosure of assets, liabilities, equity, revenues and expenses. The Company must make these estimates and assumptions because certain information used is dependent on future events, cannot be calculated with a high degree of precision from data available or simply cannot be readily calculated based on generally accepted methodologies. Actual results could differ from these estimates. Recently Adopted Accounting Pronouncements Employee benefit plan accounting In July 2015, the Financial Accounting Standards Board issued ASU No. 2015-12 related to defined benefit pension plans, defined contribution pension plans and health and welfare benefit plans. This update designates contract value as the only required measure for fully benefit-responsive investment contracts, simplifies and makes more effective the investment disclosure requirements for employee benefit plans and provides a simplified method for determining the measurement date for employee benefit plans. The update is effective in fiscal years, including interim periods, beginning after December 15, 2015. Adoption of this guidance, effective January 1, 2016, had no impact on the Consolidated Financial Statements or disclosures. Fair value measurement In May 2015, ASU No. 2015-07 was issued related to investments for which fair value is measured, or is eligible to be measured, using the net asset value per share practical expedient. This update removes the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the net asset value per share practical expedient. The amendment also removes certain disclosure requirements for these investments. This update will impact the annual disclosure related to pension plan assets measured at fair value. This update is effective in fiscal years, including interim periods, beginning after December 15, 2015. Adoption of this guidance, effective January 1, 2016, had no impact on the Consolidated Financial Statements. Debt issuance costs In April 2015, ASU No. 2015-03 was issued related to debt issuance costs. This update simplifies the presentation of debt issuance costs by requiring debt issuance costs to be presented as a deduction from the corresponding debt liability. The update is effective in fiscal years, including interim periods, beginning after December 15, 2015. The Company retrospectively adopted this guidance as of March 31, 2016. The Company reclassified $46 of debt issuance costs from Other non-current assets to Debt as of December 31, 2015. The December 31, 2015, balance sheet was adjusted as a result of the adoption of ASU 2015-03 as follows: At December 31, 2015 As Reported As Adjusted Other non-current assets $ $ Debt (non-current) $ $ ASU No. 2015-03 does not specifically address the accounting for deferred financing costs related to line-of-credit arrangements. In August 2015, ASU No. 2015-15 was issued allowing for debt issuance costs associated with line-of-credit arrangements to continue to be presented as assets. The Company will treat all debt issuance costs as a reduction to the carrying value of debt. Consolidations In February 2015, ASU No. 2015-02 was issued related to consolidations. This update makes some targeted changes to current consolidation guidance and impacts both the voting and the variable interest consolidation models. In particular, the update changes how companies determine whether limited partnerships or similar entities are variable interest entities. The update is effective in fiscal years, including interim periods, beginning after December 15, 2015. The Company currently consolidates certain variable interest entities. A doption of this guidance, effective January 1, 2016, had no impact on the Consolidated Financial Statements or disclosures. Recently Issued Accounting Pronouncements Stock-based compensation In March 2016, ASU No. 2016-09 was issued related to stock-based compensation. The new guidance simplifies the accounting for stock-based compensation transactions, including income tax consequences, classification of awards as either equity or liabilities and classification on the statement of cash flows. This update is effective in fiscal years, including interim periods, beginning after December 15, 2016, and early adoption is permitted. The Company is currently evaluating this guidance and expects an insignificant impact on the Consolidated Financial Statements and disclosures. Leases In February 2016, ASU No. 2016-02 was issued related to leases. The new guidance modifies the classification criteria and requires lessees to recognize the assets and liabilities arising from most leases on the balance sheet. This update is effective in fiscal years, including interim periods, beginning after December 15, 2018, and early adoption is permitted. The Company is currently evaluating this guidance and the impact it will have on the Consolidated Financial Statements and disclosures. Investments In January 2016, ASU No. 2016-01 was issued related to financial instruments. The new guidance requires entities to measure equity investments that do not result in consolidation and are not accounted for under the equity method at fair value and recognize any changes in fair value in net income. This new guidance also updates certain disclosure requirements for these investments. This update is effective in fiscal years, including interim periods, beginning after December 15, 2017, and early adoption is not permitted. The Company is currently evaluating this guidance and the impact it will have on the Consolidated Financial Statements and disclosures. Inventory In July 2015, ASU No. 2015-11 was issued related to inventory, simplifying the subsequent measurement of inventories by replacing the lower of cost or market test with a lower of cost and net realizable value test. The update is effective in fiscal years, including interim periods, beginning after December 15, 2016, and early adoption is permitted. The Company does not expect the updated guidance to have an impact on the Consolidated Financial Statements or disclosures. Revenue recognition In May 2014, ASU No. 2014-09 was issued related to revenue from contracts with customers. This ASU was further amended in August 2015, March 2016, April 2016 and May 2016 by ASU No. 2015-14, No. 2016-08, No. 2016-10 and No. 2016-12, respectively. The new standard provides a five-step approach to be applied to all contracts with customers and also requires expanded disclosures about revenue recognition. In August 2015, the effective date was deferred to reporting periods, including interim periods, beginning after December 15, 2017, and will be applied retrospectively. Early adoption is not permitted. The Company is currently evaluating this guidance and the impact it will have on the Consolidated Financial Statements and disclosures. |
BUSINESS ACQUISITION
BUSINESS ACQUISITION | 6 Months Ended |
Jun. 30, 2016 | |
BUSINESS ACQUISITION | |
BUSINESS ACQUISITION | NOTE 3 BUSINESS ACQUISITION On June 8, 2015, the Company announced an agreement with AngloGold Ashanti Limited to acquire 100% ownership in the Cripple Creek & Victor (“CC&V”) gold mining business in Colorado. CC&V is a surface mine with heap leach operations that provides ore to a crusher and a leach facility. During 2015, the Company received $675 in net proceeds from a common stock issuance. Newmont used the proceeds, supplemented with cash from the Company’s balance sheet, to fund the acquisition. On August 3, 2015, the Company completed the acquisition of CC&V for $821 , plus a 2.5% net smelter return royalty on future gold production from underground ore which had no fair value at the acquisition date. In connection with the acquisition, the Company incurred acquisition costs of $3 , for the three and six months ended June 30, 2016 , which were recorded in Other expense, net . The acquisition is not material to the Company's results of operations, individually or in the aggregate; as a result, no pro forma financial information is provided. During the second quarter of 2016, the final valuation of acquired assets and liabilities assumed was completed. There were no adjustments to the purchase price allocation since December 31, 2015. For further discussion of the CC&V acquisition, refer to Note 3 to the Consolidated Financial Statements for the year ended December 31, 2015 filed February 17, 2016 on Form 10-K. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 6 Months Ended |
Jun. 30, 2016 | |
SEGMENT INFORMATION | |
SEGMENT INFORMATION | NOTE 4 SEGMENT INFORMATION The Company has organized its operations into four geographic regions. The geographic regions include North America, South America, Asia Pacific and Africa and represent the Company’s operating segments. The results of these operating segments are reviewed by the Company’s chief operating decision maker to make decisions about resources to be allocated to the segments and assess their performance. As a result, these operating segments represent the Company’s reportable segments. Notwithstanding this structure, the Company internally reports information on a mine-by-mine basis for each mining operation and have chosen to disclose this information on the following tables. Income (loss) before income and mining tax and other items from reportable segments does not reflect general corporate expenses, interest (except project-specific interest) or income and mining taxes (except for equity investments). Intercompany revenue and expense amounts have been eliminated within each segment in order to report on the basis that management uses internally for evaluating segment performance. Newmont’s business activities that are not considered operating segments are included in Corporate and Other although they are not required to be included in this footnote; they are provided for reconciliation purposes. In the first quarter of 2016, Merian was moved from Corporate and Other to the South America reportable segment as a result of the mine being included in the operating results and resource allocation of the South America segment. In the second quarter of 2016, Long Canyon was moved from Other North America to its own line item to reflect how the project is being reported internally. Segment results for prior periods have been retrospectively revised to reflect these changes. The financial information relating to the Company’s segments is as follows: Advanced Income (Loss) Costs Depreciation Projects, Research before Income Applicable and and Development and Mining Tax Capital Sales to Sales Amortization and Exploration and Other Items Expenditures (1) Three Months Ended June 30, 2016 Carlin $ $ $ $ $ $ Phoenix: Gold Copper Total Phoenix Twin Creeks Long Canyon — — — CC&V (2) Other North America — — — North America Yanacocha Merian — — — Other South America — — — South America Boddington: Gold Copper Total Boddington — Tanami Kalgoorlie Batu Hijau: Gold Copper Total Batu Hijau (3) — Other Asia Pacific — — — Asia Pacific Ahafo Akyem Other Africa — — — — — Africa Corporate and Other — — Consolidated $ $ $ $ $ $ (1) Includes a decrease in accrued capital expenditures of $9 ; consolidated capital expenditures on a cash basis were $294 . (2) The Company acquired the CC&V gold mining business on August 3, 2015. (3) On June 30, 2016, the Company announced the anticipated sale of Batu Hijau. Refer to Note 1 for additional information. Advanced Income (Loss) Costs Depreciation Projects, Research before Income Applicable and and Development and Mining Tax Capital Sales to Sales Amortization and Exploration and Other Items Expenditures (1) Three Months Ended June 30, 2015 Carlin $ $ $ $ $ $ Phoenix: Gold Copper Total Phoenix Twin Creeks Long Canyon — — — Other North America — — — North America Yanacocha Merian — — — Other South America — — — South America — Boddington: Gold Copper Total Boddington — Tanami Waihi (2) Kalgoorlie Batu Hijau: Gold Copper Total Batu Hijau (3) Other Asia Pacific — — Asia Pacific Ahafo Akyem Other Africa — — — — — Africa Corporate and Other — — Consolidated $ $ $ $ $ $ (1) Includes an increase in accrued capital expenditures of $7 ; consolidated capital expenditures on a cash basis were $322 . (2) On October 29, 2015, the Company sold the Waihi mine. (3) On June 30, 2016, the Company announced the anticipated sale of Batu Hijau. Refer to Note 1 for additional information. Advanced Income (Loss) Costs Depreciation Projects, Research before Income Applicable and and Development and Mining Tax Capital Sales to Sales Amortization and Exploration and Other Items Expenditures (1) Six Months Ended June 30, 2016 Carlin $ $ $ $ $ $ Phoenix: Gold Copper Total Phoenix Twin Creeks Long Canyon — — — CC&V (2) Other North America — — — North America Yanacocha Merian — — Other South America — — — South America Boddington: Gold Copper Total Boddington — Tanami Kalgoorlie Batu Hijau: Gold Copper Total Batu Hijau (3) Other Asia Pacific — — — Asia Pacific Ahafo Akyem Other Africa — — — — Africa Corporate and Other — — Consolidated $ $ $ $ $ $ (1) Includes a decrease in accrued capital expenditures of $33 ; consolidated capital expenditures on a cash basis were $591 . (2) The Company acquired the CC&V gold mining business on August 3, 2015. (3) On June 30, 2016, the Company announced the anticipated sale of Batu Hijau. Refer to Note 1 for additional information. Advanced Income (Loss) Costs Depreciation Projects, Research before Income Applicable and and Development and Mining Tax Capital Sales to Sales Amortization and Exploration and Other Items Expenditures (1) Six Months Ended June 30, 2015 Carlin $ $ $ $ $ $ Phoenix: Gold Copper Total Phoenix Twin Creeks Long Canyon — — — Other North America — — — North America Yanacocha Merian — — — Other South America — — — South America Boddington: Gold Copper Total Boddington Tanami Waihi (2) Kalgoorlie Batu Hijau: Gold Copper Total Batu Hijau (3) Other Asia Pacific — — Asia Pacific Ahafo Akyem Other Africa — — — — Africa Corporate and Other — — Consolidated $ $ $ $ $ $ (1) Includes an increase in accrued capital expenditures of $11 ; consolidated capital expenditures on a cash basis were $606 . (2) On October 29, 2015, the Company sold the Waihi mine. (3) On June 30, 2016, the Company announced the anticipated sale of Batu Hijau. Refer to Note 1 for additional information. |
RECLAMATION AND REMEDIATION
RECLAMATION AND REMEDIATION | 6 Months Ended |
Jun. 30, 2016 | |
RECLAMATION AND REMEDIATION | |
RECLAMATION AND REMEDIATION | NOTE 5 RECLAMATION AND REMEDIATION The Company’s mining and exploration activities are subject to various domestic and international 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 to protect public health and the 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 and remediation costs are based principally on current legal and regulatory requirements. The Company’s Reclamation and remediation expense consisted of: Three Months Ended Six Months Ended June 30, June 30, 2016 2015 2016 2015 Reclamation Accretion $ $ $ $ Remediation Remediation Accretion $ $ $ $ The following are reconciliations of Reclamation and remediation liabilities : 2016 2015 Reclamation balance at January 1, $ $ Additions, changes in estimates and other Payments and other Accretion expense Reclamation balance at June 30, $ $ 2016 2015 Remediation balance at January 1, $ $ Additions, changes in estimates and other Payments and other Accretion expense Remediation balance at June 30, $ $ The current portion of reclamation liabilities included in Other current liabilities was $35 and $37 at June 30, 2016 and December 31, 2015 , respectively. The current portion of remediation liabilities included in Other current liabilities was $34 at June 30, 2016 and December 31, 2015 . At June 30, 2016 and December 31, 2015 , $1,593 and $1,553 , respectively, were accrued for reclamation obligations relating to operating properties. 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 June 30, 2016 and December 31, 2015 , $311 and $318 , respectively, were accrued for such environmental remediation obligations. There was $17 and $15 in current restricted assets for settling reclamation and remediation obligations at June 30, 2016 and December 31, 2015 , respectively, related to the Batu Hijau mine in Asia Pacific. Current restricted assets are included in Other current assets. Non-current restricted assets held for purposes of settling reclamation and remediation obligations were $77 and $65 at June 30, 2016 and December 31, 2015 , respectively. Of the amount at June 30, 2016 , $43 is related to the Midnite Mine in Washington State, $13 is related to the Ahafo and Akyem mines in Ghana, Africa, $12 is related to the Batu Hijau mine in Asia Pacific, and $9 is related to the Con mine in Yellowknife, NWT, Canada. Of the amount at December 31, 2015 , $43 is related to the Midnite Mine in Washington State, $13 is related to the Ahafo and Akyem mines in Ghana, Africa and $9 is related to the Con mine in Yellowknife, NWT, Canada. Included in Investments at June 30, 2016 and December 31, 2015 , was $21 and $20 , respectively, of non-current equity securities, which are legally pledged for purposes of settling reclamation and remediation obligations related to the San Jose Reservoir in Yanacocha and for various locations in Nevada. Refer to Note 22 for further discussion of reclamation and remediation matters. |
INCOME AND MINING TAXES
INCOME AND MINING TAXES | 6 Months Ended |
Jun. 30, 2016 | |
INCOME AND MINING TAXES | |
INCOME AND MINING TAXES | NOTE 6 INCOME AND MINING TAXES The Company’s Income and mining tax expense (benefit) differed from the amounts computed by applying the U.S. statutory corporate income tax rate for the following reasons: Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Income (loss) before income and mining tax and other items $ $ $ $ Tax at statutory rate % $ % $ % $ % $ Reconciling items: Percentage depletion (1) % % % % Change in valuation allowance on deferred tax assets % % % % Mining and other taxes % % % % Tax impact on sale of assets — % — — % — % — % — Effect of foreign earnings, net of credits % % % % Other (1) % % % % Income and mining tax expense % $ % $ % $ % $ (1) Includes the reduction to percentage depletion and the domestic production deduction from the filing of the 2015 tax return during the quarter. A valuation allowance is provided for those deferred tax assets for which it is more likely than not that the related benefits will not be realized. In determining the amount of the valuation allowance, each quarter, the Company considers future reversals of existing taxable temporary differences, estimated future taxable income and taxable income in prior carryback year(s), as well as feasible tax planning strategies in each jurisdiction to determine if the deferred tax assets are realizable. If it is determined that the Company will not realize all or a portion of its deferred tax assets, it will place or increase a valuation allowance. Conversely, if determined that it will ultimately be able to realize all or a portion of the related benefits for which a valuation allowance has been provided, all or a portion of the related valuation allowance will be reduced. There are a number of risk factors that could impact the Company’s ability to realize the deferred tax assets. The Company operates in numerous countries and accordingly it is subject to, and pays taxes under, the various 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 pay the income taxes determined to be due. The tax rules and regulations in many countries are 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 Company’s business conducted within the country involved. At June 30, 2016 , the Company’s gross unrecognized tax benefit, including interest and penalties, was $107 for uncertain income tax positions taken or expected to be taken on income tax returns. Of this, $77 represents the amount of unrecognized tax benefits that, if recognized, would affect the Company’s effective income tax rate. During the second quarter of 2016, one of the Company’s Canadian subsidiaries received a tax and interest assessment from the Canadian Revenue Authority for $54 relating to a pre-acquisition transaction of Fronteer Gold Inc. and subsidiaries. The taxing authority is disputing the tax attribute that was created as part of the pre-acquisition transaction claimed on Fronteer’s tax return. The Company is procedurally required to pay at least half of the assessment by the quarter ending September 30, 2016. The Company intends to vigorously defend its position through all processes available. As a result of the statute of limitations that expire in the next 12 months in various jurisdictions and possible settlements of audit-related issues with taxing authorities in various jurisdictions, none of which are individually significant, the Company believes that it is reasonably possible that the total amount of its net unrecognized income tax benefits will decrease by approximately $50 to $55 in the next 12 months. |
NET INCOME (LOSS) ATTRIBUTABLE
NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS | 6 Months Ended |
Jun. 30, 2016 | |
NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS | |
NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS | NOTE 7 NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS Three Months Ended Six Months Ended June 30, June 30, 2016 2015 2016 2015 Minera Yanacocha $ $ $ $ Batu Hijau TMAC — — Merian — — Other — — $ $ $ $ Newmont has a 51.35% ownership interest in Minera Yanacocha S.R.L., with the remaining interests held by Compañia de Minas Buenaventura, S.A.A. ( 43.65% ) and the International Finance Corporation ( 5% ). Newmont consolidates Yanacocha in its Condensed Consolidated Financial Statements due to a majority voting interest. Newmont has a 48.5% effective economic interest in PTNNT with remaining interests held by an affiliate of Sumitomo Corporation of Japan and various Indonesian entities. PTNNT operates the Batu Hijau copper and gold mine in Indonesia. Newmont consolidates PTNNT in its Condensed Consolidated Financial Statements as the primary beneficiary in the variable interest entity. For further information regarding the anticipated sale of the Company’s economic interest in PTNNT, see Note 1. Newmont has a 29.2% ownership interest in TMAC Resources Inc. (“TMAC”) , with the remaining interests held by TMAC management and various outside investors. Newmont’s retained investment in TMAC is accounted for as an equity method investment. Refer to Note 13 for additional information. Newmont has a 75% economic interest in the development of the Merian project, with the remaining interests held by Staatsolie (a company wholly owned by the Republic of Suriname). Newmont consolidates the Merian project through Surgold, a company wholly owned by Newmont. The project began construction in August 2014 and is planned to be in commercial production by the fourth quarter of 2016. According to the terms of the partnership agreement, Staatsolie will receive metal in kind for its 25% interest. Newmont consolidates the Merian project in its Condensed Consolidated Financial Statements as the primary beneficiary in the variable interest entity. The following summarizes the assets and liabilities, inclusive of deferred tax liabilities, of our consolidated variable interest entities (including noncontrolling interests). At June 30, 2016 At December 31, 2015 Batu Hijau Merian Batu Hijau Merian Current assets: Cash and cash equivalents $ $ $ $ Trade receivables — — Other current assets (1) Non-current assets: Property, plant and mine development, net Stockpiles and ore on leach pads — — Other non-current assets (2) — — Total assets $ $ $ $ Current liabilities: Debt $ $ — $ $ — Accounts payable — — Other current liabilities (3) Non-current liabilities: Debt — — Reclamation and remediation liabilities Other non-current liabilities (4) — — Total liabilities $ $ $ $ (1) Other current assets include other accounts receivables, inventories, stockpiles and ore on leach pads, prepaid assets, restricted assets and other current assets. (2) Other non-current assets include income tax receivables and other non-current assets. (3) Other current liabilities include employee-related benefits, income and mining taxes payables and other current liabilities. (4) Other non-current liabilities include deferred income tax liabilities and employee-related benefits. |
INCOME (LOSS) PER SHARE
INCOME (LOSS) PER SHARE | 6 Months Ended |
Jun. 30, 2016 | |
INCOME (LOSS) PER COMMON SHARE | |
INCOME (LOSS) PER COMMON SHARE | NOTE 8 INCOME (LOSS) PER COMMON SHARE Basic income (loss) 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 (loss) per common share is computed similarly, except that weighted average common shares is increased to reflect all dilutive instruments, including employee stock awards and convertible debt instruments. The dilutive effects of Newmont’s dilutive securities are calculated using the treasury stock method and only those instruments that result in a reduction in income per share are included in the calculation. Three Months Ended Six Months Ended June 30, June 30, 2016 2015 2016 2015 Net income (loss) attributable to Newmont stockholders: Continuing operations $ $ $ $ Discontinued operations $ $ $ $ Weighted average common shares (millions): Basic Effect of employee stock-based awards Diluted Income (loss) per common share: Basic: Continuing operations $ $ $ $ Discontinued operations $ $ $ $ Diluted: Continuing operations $ $ $ $ Discontinued operations $ $ $ $ Employee stock options to purchase 2 million and 2 million shares of common stock at weighted average exercise prices of $51 and $48 were outstanding at June 30, 2016 and 2015 , respectively, but were not included in the computation of diluted weighted average common shares because their exercise prices exceeded the average price of the Company’s common stock for the respective periods presented. Newmont is required to settle the principal amount of its 2017 Convertible Senior Note in cash and may elect to settle the remaining conversion premium (average share price in excess of the conversion price), if any, in cash, shares or a combination thereof. The effect of contingently convertible instruments on diluted earnings per share is calculated under the net share settlement method. The conversion price exceeded the Company’s share price for the periods presented; therefore, no additional shares were included in the computation of diluted weighted average common shares. |
EMPLOYEE PENSION AND OTHER BENE
EMPLOYEE PENSION AND OTHER BENEFIT PLANS | 6 Months Ended |
Jun. 30, 2016 | |
EMPLOYEE PENSION AND OTHER BENEFIT PLANS | |
EMPLOYEE PENSION AND OTHER BENEFIT PLANS | NOTE 9 EMPLOYEE PENSION AND OTHER BENEFIT PLANS Three Months Ended Six Months Ended June 30, June 30, 2016 2015 2016 2015 Pension benefit costs, net: Service cost $ $ $ $ Interest cost Expected return on plan assets Amortization, net $ $ $ $ Three Months Ended Six Months Ended June 30, June 30, 2016 2015 2016 2015 Other benefit costs, net: Service cost $ $ $ $ Interest cost Amortization, net — — $ — $ $ — $ |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 6 Months Ended |
Jun. 30, 2016 | |
STOCK-BASED COMPENSATION | |
STOCK BASED COMPENSATION | NOTE 10 STOCK-BASED COMPENSATION Three Months Ended Six Months Ended June 30, June 30, 2016 2015 2016 2015 Stock-based compensation: Performance leveraged stock units $ $ $ $ Restricted stock units Strategic stock units $ $ $ $ |
FAIR VALUE ACCOUNTING
FAIR VALUE ACCOUNTING | 6 Months Ended |
Jun. 30, 2016 | |
FAIR VALUE ACCOUNTING | |
FAIR VALUE ACCOUNTING | NOTE 11 FAIR VALUE ACCOUNTING Fair value accounting 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 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 tables set forth the Company’s assets and liabilities measured at fair value on a recurring basis (at least annually) by level within the fair value hierarchy. As required by accounting guidance, 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, 2016 Total Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ $ $ — $ — Restricted assets (1) — — Marketable equity securities: Extractive industries — — Other — — Marketable debt securities: Asset backed commercial paper — — Auction rate securities — — Trade receivable from provisional copper and gold concentrate sales, net — — $ $ $ — $ Liabilities: Debt (2) $ $ — $ $ — Derivative instruments, net: Foreign exchange forward contracts — — Diesel forward contracts — — Boddington contingent consideration — — Holt property royalty — — $ $ — $ $ Fair Value at December 31, 2015 Total Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ $ $ — $ — Restricted assets (1) — — Marketable equity securities: Extractive industries — — Other — — Marketable debt securities: Asset backed commercial paper — — Auction rate securities — — Trade receivable from provisional copper and gold concentrate sales, net — — $ $ $ — $ Liabilities: Debt (2) $ $ — $ $ — Derivative instruments, net: Foreign exchange forward contracts — — Diesel forward contracts — — Boddington contingent consideration — — Holt property royalty — — $ $ — $ $ (1) Restricted assets include cash and marketable securities whose carrying amounts approximate their fair value. (2) Debt, exclusive of capital leases, is carried at amortized cost. The outstanding carrying value was $5,550 and $6,167 at June 30, 2016 and December 31, 2015 , respectively. The fair value measurement of debt was based on prices obtained from readily available pricing sources. The fair values of the derivative instruments in the table above are presented on a net basis. The gross amounts related to the fair value of the derivatives instruments above are included in Note 12 . All other fair value disclosures in the above table are presented on a gross basis. The Company’s cash and cash equivalent instruments are classified within Level 1 of the fair value hierarchy because they are valued using quoted market prices. The cash and cash equivalent instruments that are valued based on quoted market prices in active markets are primarily money market securities and U.S. Treasury securities. The Company’s 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 securities are segregated based on industry. 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 Company’s marketable debt securities include investments in auction rate securities and asset backed commercial paper. The Company reviews the fair value for auction rate securities and asset backed commercial paper on a quarterly basis. The marketable debt securities are traded in markets that are not active, trade infrequently and have little price transparency. Therefore, the investments are classified as Level 3 of the fair value hierarchy. See the table below which sets forth a summary of the quantitative and qualitative information related to the significant unobservable inputs used in the calculation of the fair value. The Company’s net trade receivable from provisional copper and gold concentrate sales, subject to final pricing, is valued using quoted market prices based on forward curves and, as such, is classified within Level 1 of the fair value hierarchy. The Company’s derivative instruments are valued using pricing models and the Company generally uses similar models to value similar instruments. Valuation models require a variety of inputs, including contractual terms, market prices, forward curves, measures of volatility and correlations of such inputs. The Company’s derivatives trade in liquid markets and, as such, model inputs can generally be verified and do not involve significant management judgment. Such instruments are classified within Level 2 of the fair value hierarchy. The estimated value of the Boddington contingent royalty was determined using a (i) discounted cash flow model, (ii) Monte Carlo valuation model to simulate future gold and copper prices using the Company’s long-term gold and copper prices and (iii) Monte Carlo valuation model to simulate costs applicable to sales using the Company’s Australian to U.S. dollar exchange rate. This contingent royalty is capped at $100 , of which $72 has been paid to date. The estimated fair value of the Holt sliding scale royalty was determined using (i) a discounted cash flow model, (ii) a Monte Carlo valuation model to simulate future gold prices using the Company’s long-term gold price, (iii) various gold production scenarios from reserve and resource information and (iv) a weighted average discount rate. The sliding scale royalty liability is classified within Level 3 of the fair value hierarchy. The following tables set forth a summary of the quantitative and qualitative information related to the unobservable inputs used in the calculation of the Company’s Level 3 financial assets and liabilities at June 30, 2016 and December 31, 2015 : At June 30, Range/Weighted Description 2016 Valuation technique Unobservable input average Auction rate securities $ Risk-adjusted indicative price Recoverability rate % Asset backed commercial paper $ Risk-adjusted indicative price Recoverability rate % Boddington contingent consideration $ Monte Carlo Discount rate % Short-term gold price $ Long-term gold price $ Short-term copper price $ Long-term copper price $ Long-term Australian to U.S. dollar exchange rate $ Holt property royalty $ Monte Carlo Discount rate % Short-term gold price $ Long-term gold price $ Gold production scenarios (in 000's of ounces) 365 - 1,603 At December 31, Range/Weighted Description 2015 Valuation technique Unobservable input average Auction rate securities $ Risk-adjusted indicative price Recoverability rate % Asset backed commercial paper $ Risk-adjusted indicative price Recoverability rate % Boddington contingent consideration $ Monte Carlo Discount rate % Short-term gold price $ Long-term gold price $ Short-term copper price $ Long-term copper price $ Long-term Australian to U.S. dollar exchange rate $ Holt property royalty $ Monte Carlo Discount rate % Short-term gold price $ Long-term gold price $ Gold production scenarios (in 000's of ounces) 398 - 1,636 The following tables set forth a summary of changes in the fair value of the Company’s Level 3 financial assets and liabilities: Asset Auction Backed Boddington Holt Rate Commercial Total Contingent Property Total Securities (1) Paper (1) Assets Consideration (2) Royalty (3) Liabilities Fair value at December 31, 2015 $ $ $ $ $ $ Settlements — — — — Revaluation — Fair value at June 30, 2016 $ $ $ $ $ $ Asset Auction Backed Boddington Holt Rate Commercial Total Contingent Property Total Securities (1) Paper (1) Assets Consideration (2) Royalty (3) Liabilities Fair value at December 31, 2014 $ $ $ $ $ $ Settlements — — — — Revaluation — Fair value at June 30, 2015 $ $ $ $ $ $ (1) The gain (loss) recognized is included in Accumulated other comprehensive income (loss) . (2) The gain (loss) recognized is included in Other expense, net . (3) The gain (loss) recognized is included in Income (loss) from discontinued operations . |
DERIVATIVE INSTRUMENTS
DERIVATIVE INSTRUMENTS | 6 Months Ended |
Jun. 30, 2016 | |
DERIVATIVE INSTRUMENTS | |
DERIVATIVE INSTRUMENTS | NOTE 12 DERIVATIVE INSTRUMENTS The Company’s strategy is to provide shareholders with leverage to changes in gold and copper prices by selling its production at spot market prices. Consequently, the Company does not hedge its gold and copper sales. The Company has and will continue to manage certain risks associated with commodity input costs, interest rates and foreign currencies using the derivative market. All of the derivative instruments described below were transacted for risk management purposes and qualify as cash flow hedges. Cash Flow Hedges The following foreign currency and diesel contracts are designated as cash flow hedges and, as such, the effective portion of unrealized changes in market value have been recorded in Accumulated other comprehensive income (loss) and are reclassified to income during the period in which the hedged transaction affects earnings. Gains and losses from hedge ineffectiveness are recognized in current earnings . Foreign Currency Contracts The Company had the following foreign currency derivative contracts in Asia Pacific outstanding at June 30, 2016 : Expected Maturity Date 2016 2017 2018 Total/Average A$ Operating Fixed Forward Contracts: A$ notional (millions) Average rate ($/A$) Expected hedge ratio % % % The A$ hedges run through the first quarter of 2018. Diesel Fixed Forward Contracts The Company had the following diesel derivative contracts in North America outstanding at June 30, 2016 : Expected Maturity Date 2016 2017 Total/Average Diesel Fixed Forward Contracts: Diesel gallons (millions) Average rate ($/gallon) Expected hedge ratio % % Newmont hedges a portion of its operating cost exposure related to diesel consumed at its Nevada operations to reduce the variability in diesel prices. The hedging instruments consist of a series of financially settled fixed forward contracts, which run through the fourth quarter of 2017. Derivative Instrument Fair Values The Company had the following derivative instruments designated as hedges at June 30, 2016 and December 31, 2015 : Fair Values of Derivative Instruments At June 30, 2016 Other Other Other Other Current Non-current Current Non-current Assets Assets Liabilities Liabilities Foreign currency exchange contracts: A$ operating fixed forwards $ — $ — $ $ Diesel fixed forwards Total derivative instruments $ $ $ $ Fair Values of Derivative Instruments At December 31, 2015 Other Other Other Other Current Non-current Current Non-current Assets Assets Liabilities Liabilities Foreign currency exchange contracts: A$ operating fixed forwards $ — $ — $ $ Diesel fixed forwards — — Total derivative instruments $ — $ — $ $ As of June 30, 2016 and December 31, 2015 , all derivative instruments held by the Company were subject to enforceable master netting arrangements held by various financial institutions. In general, the terms of the Company’s agreements provide for offsetting of amounts payable or receivable between it and the counterparty, at the election of both parties, for transactions that occur on the same date and in the same currency. The Company’s agreements also provide that in the event of an early termination, the counterparties have the right to offset amounts owed or owing under that and any other agreement with the same counterparty. The Company’s accounting policy is to not offset these positions in its accompanying balance sheets. As of June 30, 2016 , the potential effect of netting derivative assets against liabilities due to the master netting agreements was $2 . As of December 31, 2015 , all gross amounts presented in the accompanying balance sheets were in a liability position. The following tables show the location and amount of gains (losses) reported in the Company’s Condensed Consolidated Financial Statements related to the Company’s hedges. Foreign Currency Diesel Fixed Interest Exchange Contracts Forward Contracts Rate Contracts 2016 2015 2016 2015 2016 2015 For the three months ended June 30, Cash flow hedging relationships: Gain (loss) recognized in Other comprehensive income (loss) (effective portion) $ $ $ $ $ — $ — Gain (loss) reclassified from Accumulated other comprehensive income (loss) into income (loss) (effective portion) (1) $ $ $ $ $ $ Gain (loss) reclassified from Accumulated other comprehensive income (loss) into income (loss) (ineffective portion) (2) $ — $ — $ $ — $ — $ — For the six months ended June 30, Cash flow hedging relationships: Gain (loss) recognized in Other comprehensive income (loss) (effective portion) $ $ $ $ $ — $ — Gain (loss) reclassified from Accumulated other comprehensive income (loss) into income (loss) (effective portion) (1) $ $ $ $ $ $ Gain (loss) reclassified from Accumulated other comprehensive income (loss) into income (loss) (ineffective portion) (2) $ — $ — $ $ $ — $ — (1) The gain (loss) recognized for the effective portion of cash flow hedges is included in Cost applicable to sales and Interest expense , net . (2) The ineffective portion recognized for cash flow hedges is included in Other income, net . Based on fair values at June 30, 2016 , the amount to be reclassified from Accumulated other comprehensive income (loss) , net of tax to income for derivative instruments during the next 12 months is a loss of approximately $41 . Provisional Gold and Copper Sales The Company’s provisional gold and copper concentrate sales contain an embedded derivative that is required to be separated from the host contract for accounting purposes. The host contract is the receivable from the sale of the gold and copper concentrates at the prevailing indices’ prices at the time of sale. The embedded derivative, which does not qualify for hedge accounting, is marked to market through earnings each period prior to final settlement. At June 30, 2016 , Newmont had gold and copper sales of 258,000 ounces and 125 million pounds priced at an average of $1,323 per ounce and $2.19 per pound, respectively, subject to final pricing over the next several months. |
INVESTMENTS
INVESTMENTS | 6 Months Ended |
Jun. 30, 2016 | |
INVESTMENTS | |
INVESTMENTS | NOTE 13 INVESTMENTS At June 30, 2016 Cost/Equity Unrealized Fair/Equity Basis Gain Loss Basis Current: Marketable Equity Securities: Gabriel Resources Ltd. $ $ $ — $ Other $ $ $ $ Non-current: Marketable Debt Securities: Asset backed commercial paper $ $ $ — $ Auction rate securities — Marketable Equity Securities — Other investments, at cost — — Equity Method Investments: TMAC — — Minera La Zanja S.R.L. — — Novo Resources Corp. — — Euronimba Ltd. — — $ $ $ $ At December 31, 2015 Cost/Equity Unrealized Fair/Equity Basis Gain Loss Basis Current: Marketable Equity Securities: Gabriel Resources Ltd. $ $ — $ — $ Other $ $ $ $ Non-current: Marketable Debt Securities: Asset backed commercial paper $ $ $ — $ Auction rate securities — Marketable Equity Securities: Regis Resources Ltd. — Other — — Other investments, at cost — — Equity Method Investments: TMAC — — Minera La Zanja S.R.L. — — Novo Resources Corp. — — Euronimba Ltd. — — $ $ $ $ In March 2016, the Company sold its investment in Regis Resources Ltd. for $184 , resulting in a pre-tax gain of $103 recorded in Other income, net . The cost of the investment sold was determined using the specific identification method. In March 2016, Newmont participated in the TMAC offering acquiring 242,979 shares for C$2 , maintaining its 29.37% ownership interest. During the three months ended June 30, 2016, Newmont’s ownership interest was diluted to 29.2% due primarily to the exercising of warrants held by other shareholders. In July 2016, Newmont participated in a second offering acquiring an additional 1,159,000 shares for C$17.5 , maintaining its 29.2% ownership interest. During 2015, Newmont determined that TMAC was no longer considered a variable interest entity and should no longer be consolidated into Newmont’s financial results due to a number of financing events, which took place during the year. Newmont deconsolidated the assets, liabilities and non-controlling interest related to TMAC and recognized a gain of $76 , recorded within Other income, net , during the third quarter of 2015. The fair value of the retained investment was valued utilizing the market approach applying the IPO share price. Newmont’s retained investment in TMAC is accounted for as an equity method investment. There were no investment impairments for other-than-temporary declines in value during the three and six months ended June 30, 2016 . As of June 30, 2016 , there was a $22 increase in the fair value of marketable securities previously impaired, primarily due to Gabriel Resources Ltd., Pilot Gold, Eurasian Minerals Inc. and Loncor Resources Inc. During the three and six months ended June 30, 2015 , the Company recognized investment impairments for other-than-temporary declines in value of $16 and $73 , respectively, primarily related to Regis Resources Ltd., as a result of the continued decline in the stock price. As of June 30, 2015 , there was a $26 decrease in the fair value of marketable securities previously impaired, primarily due to Gabriel Resources Ltd. and Pilot Gold. The following tables present the gross unrealized losses and fair value of the Company’s investments with unrealized losses that are deemed to be temporarily impaired, aggregated by length of time that the individual securities have been in a continuous unrealized loss position: Less than 12 Months 12 Months or Greater Total At June 30, 2016 Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Marketable equity securities $ $ $ — $ — $ $ Auction rate securities — — $ $ $ $ $ $ Less than 12 Months 12 Months or Greater Total At December 31, 2015 Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Marketable equity securities $ $ $ — $ — $ $ Auction rate securities — — $ $ $ $ $ $ While the fair value of some of the Company’s investments in marketable equity securities and auction rate securities are below their respective cost, the Company views these declines as temporary. The Company has the ability and intends to hold its securities until maturity or such time that the market recovers. |
INVENTORIES
INVENTORIES | 6 Months Ended |
Jun. 30, 2016 | |
INVENTORIES | |
INVENTORIES | |
INVENTORIES | NOTE 14 INVENTORIES At June 30, At December 31, 2016 2015 Materials and supplies $ $ Concentrate and copper cathode In-process Precious metals $ $ |
STOCKPILES AND ORE ON LEACH PAD
STOCKPILES AND ORE ON LEACH PADS | 6 Months Ended |
Jun. 30, 2016 | |
Stockpiles and ore on leach pads | |
STOCKPILES AND ORE ON LEACH PADS | |
STOCKPILES AND ORE ON LEACH PADS | NOTE 15 STOCKPILES AND ORE ON LEACH PADS At June 30, At December 31, 2016 2015 Current: Stockpiles $ $ Ore on leach pads $ $ Non-current: Stockpiles $ $ Ore on leach pads $ $ At June 30, At December 31, 2016 2015 Stockpiles and ore on leach pads: Carlin $ $ Phoenix Twin Creeks Long Canyon — CC&V Yanacocha Merian Boddington Tanami Kalgoorlie Batu Hijau Ahafo Akyem $ $ During the three and six months ended June 30, 2016 , the Company recorded write-downs of $57 and $107 , respectively, classified as components of Costs applicable to sales and write-downs of $26 and $50 , respectively, classified as components of Depreciation and amortization to reduce the carrying value of stockpiles and ore on leach pads to net realizable value. Adjustments to net realizable value are a result of higher future processing costs in addition to stripping campaigns driving lower grade and lower recovery resulting in higher costs per unit. Of the write-downs during the three months ended June 30, 2016 , $31 is related to Carlin, $10 to Twin Creeks and $42 to Yanacocha. Of the write-downs during the six months ended June 30, 2016 , $58 is related to Carlin, $12 to Twin Creeks and $87 to Yanacocha. |
DEBT
DEBT | 6 Months Ended |
Jun. 30, 2016 | |
DEBT | |
DEBT | NOTE 16 DEBT On March 29, 2016, the Company accepted for purchase approximately $274 of its 2019 Notes and $226 of its 2039 Notes through a debt tender offer. The company recorded a net pre-tax loss of $4 in Other income, net as a result of the debt tender offer. Additionally, the Company reclassified $2 in Interest expense, net from Accumulated other comprehensive income (loss) related to the acceleration of the unrealized gains on the treasury rate lock contracts, which were entered into upon issuance of the Notes in 2009. During the second quarter, the company paid $140 on the PTNNT revolving credit facility. There was $24 and $nil in current restricted assets at June 30, 2016 and December 31, 2015, respectively, for future payments on the PTNNT revolving credit facility as required by local statutes. Current restricted assets are included in Other current assets . Scheduled minimum debt repayments are $3 for the remainder of 2016 , $765 in 2017 , $nil in 2018 , $901 in 2019 , $nil in 2020 and $3,974 thereafter. Scheduled minimum capital lease repayments are $3 in 2016 , $6 in 2017 , $4 in 2018, $4 in 2019, $1 in 2020 and $3 thereafter. |
OTHER LIABILITIES
OTHER LIABILITIES | 6 Months Ended |
Jun. 30, 2016 | |
OTHER LIABILITIES | |
OTHER LIABILITIES | NOTE 17 OTHER LIABILITIES At June 30, At December 31, 2016 2015 Other current liabilities: Accrued operating costs $ $ Accrued capital expenditures Reclamation and remediation liabilities Accrued interest Derivative instruments Royalties Holt property royalty Taxes other than income and mining Other $ $ Other non-current liabilities: Holt property royalty $ $ Income and mining taxes Power supply agreements Social development obligations Derivative instruments Boddington contingent consideration Other $ $ |
CHANGES IN EQUITY
CHANGES IN EQUITY | 6 Months Ended |
Jun. 30, 2016 | |
CHANGES IN EQUITY | |
CHANGES IN EQUITY | NOTE 18 CHANGES IN EQUITY Six Months Ended June 30, 2016 2015 Common stock: At beginning of period $ $ Stock-based awards Stock issuance — At end of period Additional paid-in capital: At beginning of period Stock-based awards Stock issuance — Sale of noncontrolling interests — At end of period Accumulated other comprehensive income (loss): At beginning of period Other comprehensive income (loss) At end of period Retained earnings: At beginning of period Net income (loss) attributable to Newmont stockholders Dividends paid At end of period Noncontrolling interests: At beginning of period Net income (loss) attributable to noncontrolling interests Dividends paid to noncontrolling interests Funding from noncontrolling interests, net Sale of noncontrolling interests, net — Other At end of period Total equity $ $ . |
RECLASSIFICATIONS OUT OF ACCUMU
RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 6 Months Ended |
Jun. 30, 2016 | |
RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | |
RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | NOTE 19 RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) Pension and Changes in Unrealized gain Foreign other fair value of (loss) on currency post ‑retirement cash flow marketable translation benefit hedge securities, net adjustments adjustments instruments Total Balance at December 31, 2015 $ $ $ $ $ Change in other comprehensive income (loss) before reclassifications Reclassifications from accumulated other comprehensive income (loss) — Net current-period change Balance at June 30, 2016 $ $ $ $ $ Details about Accumulated Other Comprehensive Income (Loss) Components Amount Reclassified from Accumulated Other Comprehensive Income (Loss) Affected Line Item in the Condensed Consolidated Statements of Income Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Marketable securities adjustments: Sale of marketable securities $ — $ — $ $ Other income, net Impairment of marketable securities — — Other income, net Total before tax — Tax benefit (expense) — — — — Net of tax $ — $ $ $ Pension and other post-retirement benefit adjustments: Amortization $ $ $ $ (1) Tax benefit (expense) Net of tax $ $ $ $ Hedge instruments adjustments: Operating cash flow hedges (effective portion) $ $ $ $ Costs applicable to sales Operating cash flow hedges (ineffective portion) — Other income, net Interest rate contracts Interest expense, net Total before tax Tax benefit (expense) Net of tax $ $ $ $ Total reclassifications for the period, net of tax $ $ $ $ (1) Included in General and administrative or included as a component of Costs applicable to sales, which are incurred in the inventory/production process . Refer to Note 2 to the Consolidated Financial Statements for the year ended December 31, 2015 filed February 17, 2016 on Form 10-K for information on costs that benefit the inventory/production process. |
NET CHANGE IN OPERATING ASSETS
NET CHANGE IN OPERATING ASSETS AND LIABILITIES | 6 Months Ended |
Jun. 30, 2016 | |
NET CHANGE IN OPERATING ASSETS AND LIABILITIES | |
NET CHANGE IN OPERATING ASSETS AND LIABILITIES | NOTE 20 NET CHANGE IN OPERATING ASSETS AND LIABILITIES Net cash provided by operating activities attributable to the net change in operating assets and liabilities is composed of the following: Six Months Ended June 30, 2016 2015 Decrease (increase) in operating assets: Trade and other accounts receivables $ $ Inventories, stockpiles and ore on leach pads EGR refinery and other assets (1) — Other assets Increase (decrease) in operating liabilities: Accounts payable EGR refinery and other liabilities (1) — Reclamation liabilities Other accrued liabilities $ $ (1) On July 24, 2015, the Company sold its ownership interest in European Gold Refinery Holdings (“EGR”). |
CONDENSED CONSOLIDATING FINANCI
CONDENSED CONSOLIDATING FINANCIAL STATEMENTS | 6 Months Ended |
Jun. 30, 2016 | |
CONDENSED CONSOLIDATING FINANCIAL STATEMENTS | |
CONDENSED CONSOLIDATING FINANCIAL STATEMENTS | NOTE 21 CONDENSED CONSOLIDATING FINANCIAL STATEMENTS The following Condensed Consolidating Financial Statements are presented to satisfy disclosure requirements of Rule 3-10(e) of Regulation S-X resulting from the inclusion of Newmont USA Limited (“Newmont USA”), a wholly-owned subsidiary of Newmont, as a co-registrant with Newmont on debt securities issued under a shelf registration statement on Form S-3 filed under the Securities Act of 1933 under which securities of Newmont (including debt securities guaranteed by Newmont USA) may be issued (the “Shelf Registration Statement”). In accordance with Rule 3-10(e) of Regulation S-X, Newmont USA, as the subsidiary guarantor, is 100% owned by Newmont, the guarantees are full and unconditional, and no other subsidiary of Newmont guaranteed any security issued under the Shelf Registration Statement. There are no restrictions on the ability of Newmont or Newmont USA to obtain funds from its subsidiaries by dividend or loan. During the first quarter of 2016, the Company conducted certain restructurings for tax planning purposes which modified the entities owned by the guarantor and impacted their respective Condensed Consolidating Financial statements. Three Months Ended June 30, 2016 (Issuer) (Guarantor) (Non-Guarantor) Newmont Newmont Mining Mining Newmont Other Corporation Condensed Consolidating Statement of Operation Corporation USA Subsidiaries Eliminations Consolidated Sales $ — $ $ $ — $ Costs and expenses Costs applicable to sales (1) — — Depreciation and amortization — Reclamation and remediation — — Exploration — — Advanced projects, research and development — — General and administrative — — Other expense, net — — — Other income (expense) Other income, net — — Interest income - intercompany — — Interest expense - intercompany — — Interest expense, net — — — Income (loss) before income and mining tax and other items — Income and mining tax benefit (expense) — Equity income (loss) of affiliates Income (loss) from continuing operations Income (loss) from discontinued operations — — — Net income (loss) Net loss (income) attributable to noncontrolling interests — — — Net income (loss) attributable to Newmont stockholders $ $ $ $ $ Comprehensive income (loss) $ $ $ $ $ Comprehensive loss (income) attributable to noncontrolling interests — — — Comprehensive income (loss) attributable to Newmont stockholders $ $ $ $ $ (1) Excludes Depreciation and amortization and Reclamation and remediation . Three Months Ended June 30, 2015 (Issuer) (Guarantor) (Non-Guarantor) Newmont Newmont Mining Mining Newmont Other Corporation Condensed Consolidating Statement of Operation Corporation USA Subsidiaries Eliminations Consolidated Sales $ — $ $ $ — $ Costs and expenses Costs applicable to sales (1) — — Depreciation and amortization — Reclamation and remediation — — Exploration — — Advanced projects, research and development — — General and administrative — — Other expense, net — — — Other income (expense) Other income, net — — Interest income - intercompany — Interest expense - intercompany — — Interest expense, net — — Income (loss) before income and mining tax and other items — Income and mining tax benefit (expense) — Equity income (loss) of affiliates Income (loss) from continuing operations Income (loss) from discontinued operations — — — Net income (loss) Net loss (income) attributable to noncontrolling interests — — Net income (loss) attributable to Newmont stockholders $ $ $ $ $ Comprehensive income (loss) $ $ $ $ $ Comprehensive loss (income) attributable to noncontrolling interests — — Comprehensive income (loss) attributable to Newmont stockholders $ $ $ $ $ (1) Excludes Depreciation and amortization and Reclamation and remediation . Six Months Ended June 30, 2016 (Issuer) (Guarantor) (Non-Guarantor) Newmont Newmont Mining Mining Newmont Other Corporation Condensed Consolidating Statement of Operation Corporation USA Subsidiaries Eliminations Consolidated Sales $ — $ $ $ — $ Costs and expenses Costs applicable to sales (1) — — Depreciation and amortization — Reclamation and remediation — — Exploration — — Advanced projects, research and development — — General and administrative — — Other expense, net — — — Other income (expense) Other income, net — — Interest income - intercompany — — Interest expense - intercompany — — Interest expense, net — — Income (loss) before income and mining tax and other items — Income and mining tax benefit (expense) — Equity income (loss) of affiliates Income (loss) from continuing operations Income (loss) from discontinued operations — — — Net income (loss) Net loss (income) attributable to noncontrolling interests — — — Net income (loss) attributable to Newmont stockholders $ $ $ $ $ Comprehensive income (loss) $ $ $ $ $ Comprehensive loss (income) attributable to noncontrolling interests — — — Comprehensive income (loss) attributable to Newmont stockholders $ $ $ $ $ (1) Excludes Depreciation and amortization and Reclamation and remediation . Six Months Ended June 30, 2015 (Issuer) (Guarantor) (Non-Guarantor) Newmont Newmont Mining Mining Newmont Other Corporation Condensed Consolidating Statement of Operation Corporation USA Subsidiaries Eliminations Consolidated Sales $ — $ $ $ — $ Costs and expenses Costs applicable to sales (1) — — Depreciation and amortization — Reclamation and remediation — — Exploration — — Advanced projects, research and development — — General and administrative — — Other expense, net — — — Other income (expense) Other income, net — Interest income - intercompany — Interest expense - intercompany — — Interest expense, net — — Income (loss) before income and mining tax and other items — Income and mining tax benefit (expense) — Equity income (loss) of affiliates Income (loss) from continuing operations Income (loss) from discontinued operations — — — Net income (loss) Net loss (income) attributable to noncontrolling interests — — Net income (loss) attributable to Newmont stockholders $ $ $ $ $ Comprehensive income (loss) $ $ $ $ $ Comprehensive loss (income) attributable to noncontrolling interests — — Comprehensive income (loss) attributable to Newmont stockholders $ $ $ $ $ (1) Excludes Depreciation and amortization and Reclamation and remediation . Six Months Ended June 30, 2016 (Issuer) (Guarantor) (Non-Guarantor) Newmont Newmont Mining Mining Newmont Other Corporation Condensed Consolidating Statement of Cash Flows Corporation USA Subsidiaries Eliminations Consolidated Operating activities: Net cash provided by operating activities $ $ $ $ $ Investing activities: Additions to property, plant and mine development — — Sales of investments — — — Sales of other assets — — — Other — — — Net cash used in investing activities — — Financing activities: Repayment of debt — Net intercompany borrowings (repayments) — — Funding from noncontrolling interests — — — Dividends paid to noncontrolling interests — — — Dividends paid to common stockholders — (Increase) decrease in restricted cash — — — Other — — — Net cash (used in) provided by financing activities Effect of exchange rate changes on cash — — — Net change in cash and cash equivalents — — Cash and cash equivalents at beginning of period — — Cash and cash equivalents at end of period $ — $ $ $ — $ Six Months Ended June 30, 2015 (Issuer) (Guarantor) (Non-Guarantor) Newmont Newmont Mining Mining Newmont Other Corporation Condensed Consolidating Statement of Cash Flows Corporation USA Subsidiaries Eliminations Consolidated Operating activities: Net cash provided by operating activities $ $ $ $ — $ Investing activities: Additions to property, plant and mine development — — Sales of investments — — Sales of other assets — — Other — — — Net cash used in investing activities — — Financing activities: Repayment of debt — Net intercompany borrowings (repayments) — — Proceeds from stock issuance, net — — — Sale of noncontrolling interests — — Funding from noncontrolling interests — — — Dividends paid to noncontrolling interests — — — Dividends paid to common stockholders — — — (Increase) decrease in restricted cash — — — Other — Net cash (used in) provided by financing activities — Effect of exchange rate changes on cash — — — Net change in cash and cash equivalents — — Cash and cash equivalents at beginning of period — — Cash and cash equivalents at end of period $ — $ $ $ — $ At June 30, 2016 (Issuer) (Guarantor) (Non-Guarantor) Newmont Newmont Mining Mining Newmont Other Corporation Condensed Consolidating Balance Sheet Corporation USA Subsidiaries Eliminations Consolidated Assets: Cash and cash equivalents $ — $ $ $ — $ Trade receivables — — Other accounts receivables — — Intercompany receivable — Investments — — — Inventories — — Stockpiles and ore on leach pads — — Other current assets — — Current assets Property, plant and mine development, net Investments — — Investments in subsidiaries — — Stockpiles and ore on leach pads — — Deferred income tax assets Non-current intercompany receivable — Other non-current assets — — Total assets $ $ $ $ $ Liabilities: Debt $ — $ $ $ — $ Accounts payable — — Intercompany payable — Employee-related benefits — — Income and mining taxes — — Other current liabilities — Current liabilities Debt — Reclamation and remediation liabilities — — Deferred income tax liabilities — Employee-related benefits — Non-current intercompany payable — — Other non-current liabilities — — Total liabilities Equity: Newmont stockholders’ equity Noncontrolling interests — — — Total equity Total liabilities and equity $ $ $ $ $ At December 31, 2015 (Issuer) (Guarantor) (Non-Guarantor) Newmont Newmont Mining Mining Newmont Other Corporation Condensed Consolidating Balance Sheet Corporation USA Subsidiaries Eliminations Consolidated Assets: Cash and cash equivalents $ — $ $ $ — $ Trade receivables — — Other accounts receivables — — — Intercompany receivable — Investments — — — Inventories — — Stockpiles and ore on leach pads — — Other current assets — — Current assets Property, plant and mine development, net Investments — — Investments in subsidiaries — Stockpiles and ore on leach pads — — Deferred income tax assets Non-current intercompany receivable — Other non-current assets — — Total assets $ $ $ $ $ Liabilities: Debt $ — $ $ $ — $ Accounts payable — — Intercompany payable — Employee-related benefits — — Income and mining taxes — — — Other current liabilities — Current liabilities Debt — Reclamation and remediation liabilities — — Deferred income tax liabilities — Employee-related benefits — — Non-current intercompany payable — — Other non-current liabilities — — Total liabilities Equity: Newmont stockholders’ equity Noncontrolling interests — — Total equity Total liabilities and equity $ $ $ $ $ |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Jun. 30, 2016 | |
COMMITMENTS AND CONTINGENCIES | |
COMMITMENTS AND CONTINGENCIES | NOTE 22 COMMITMENTS AND CONTINGENCIES General Estimated losses from contingencies are accrued by a charge to income when information available prior to issuance of the financial statements indicates that it is probable 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 contingency and estimated range of loss, if determinable, is made in the financial statements when it is at least reasonably possible that a material loss could be incurred. Operating Segments The Company’s operating segments are identified in Note 4 . Except as noted in this paragraph, all of the Company’s commitments and contingencies specifically described herein are included in Corporate and Other. The Yanacocha matters relate to the South America reportable segment. The PTNNT matters relate to the Asia Pacific reportable segment. The Fronteer matters relate to the North America reportable segment. Environmental Matters The Company’s 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. Reclamation costs are allocated to expense over the life of the related assets and are periodically adjusted to reflect changes in the estimated present value resulting from the passage of time and revisions to the estimates of either the timing or amount of the reclamation costs. Reclamation obligations are based on when the spending for an existing environmental disturbance will occur. The Company reviews, on at least an annual basis, the reclamation obligation at each mine. Accounting for reclamation obligations requires management to make estimates unique to each mining operation of the future costs the Company will incur to complete the reclamation work required to comply with existing laws and regulations. As mining operations progress over their mine life, the Company is able to more accurately predict the estimated future reclamation costs. Any such changes in future costs, the timing of reclamation activities, or scope could materially impact the amounts charged to earnings for reclamation. Additionally, future changes to environmental laws and regulations could increase the extent of reclamation work required. In early 2015, the Peruvian government agency responsible for certain environmental regulations, the Ministry of the Environment (“MINAM”), issued proposed water quality criteria for designated beneficial uses which apply to mining companies, including Yanacocha. These criteria would modify the in-stream water quality criteria pursuant to which Yanacocha has been designing water treatment processes and infrastructure. In December 2015, MINAM issued the final regulation that modified the water quality standards and the Company has one year to submit a modification to the previously approved Environmental Impact Assessment which is due February 15, 2017. A total of up to four years are allowed for permitting, detailed engineering, and construction of water treatment facilities required for compliance with the new water quality standards. Yanacocha is currently assessing treatment options in connection with the new water quality standards, which are expected to result in increased costs. If Yanacocha is unsuccessful in designing, constructing and implementing effective treatment options in the next four years, it could result in potential fines and penalties relating to potential intermittent non-compliant exceedances. In addition to assessing water treatment options to comply with the new water standards described above, the Company is also performing a comprehensive update to the Yanacocha reclamation plan to address stakeholder input and changes in closure activities and estimated closure costs while preserving optionality for potential future projects at Yanacocha. The revised reclamation plan, once approved, could result in a material increase in the reclamation obligation at Yanacocha. Additionally, increases in the future reclamation costs at Yanacocha could result in a significant increase in all-in sustaining costs per ounce and possibly result in impairments to Yanacocha’s long-lived assets based upon then current mine plans. The Company will continue to advance the update to the Yanacocha reclamation plan and expects to further refine the associated cost estimates in late 2016 in connection with completing the revised Environmental Impact Assessment and our mine planning process. For a complete discussion of the factors that influence our reclamation obligations and the associated risks, refer to Managements’ Discussion and Analysis of Consolidated Financial Condition and Results of Operations under the heading “Critical Accounting Policies” and refer to Risk Factors under the heading “Mine closure and remediation costs for environmental liabilities may exceed the provisions we have made” for the year ended December 31, 2015 filed February 17, 2016 on Form 10-K. At June 30, 2016 and December 31, 2015 , $1,593 and $1,553 , respectively, were accrued for reclamation costs relating to currently or recently producing mineral properties in accordance with asset retirement obligation guidance. The current portions of $35 and $37 at June 30, 2016 and December 31, 2015 , 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 Company’s best estimate of its liability for these matters, $311 and $318 were accrued for such obligations at June 30, 2016 and December 31, 2015 , respectively. These amounts are included in Other current liabilities and Reclamation and remediation liabilities . Depending upon the ultimate resolution of these matters, the Company believes that it is reasonably possible that the liability for these matters could be as much as 41% greater or 1% lower than the amount accrued at June 30, 2016 . The amounts accrued are reviewed periodically based upon facts and circumstances available at the time. Changes in estimates are recorded in Reclamation and remediation in the period estimates are revised. Refer to Note 5 for further information regarding reclamation and remediation. Details about certain of the more significant matters are discussed below. Newmont USA Limited - 100% Newmont Owned Ross-Adams Mine Site. By letter dated June 5, 2007, the U.S. Forest Service (“USFS”) notified Newmont that it had expended approximately $0.3 in response costs to address environmental conditions at the Ross-Adams mine in Prince of Wales, Alaska, and requested Newmont USA Limited pay those costs and perform an Engineering Evaluation/Cost Analysis (“EE/CA”) to assess what future response activities might need to be completed at the site. Newmont agreed to perform the EE/CA, which has been provided to the USFS. During the first quarter of 2016, the USFS confirmed approval of the EE/CA, and Newmont issued written notice to the USFS certifying that all requirements of the Administrative Settlement Agreement and Order on Consent (“ASAOC”) between the USFS and Newmont have been completed. Newmont anticipates that the USFS will issue an Action Memorandum in the third quarter of 2016 to select the preferred removal action alternative identified in the EE/CA. The ASAOC will be final upon USFS concurrence with the notice of completion and Newmont payment of USFS response costs, which are anticipated to be received from the USFS in the third quarter of 2016. Any future liability associated with the Ross-Adams site would be subject to future negotiations with the USFS. Upon USFS issuing the Action Memorandum, Newmont will resume discussions with another potential responsible party to discuss possible allocation of future costs for implementing the remedy. No assurances can be made at this time with respect to the outcome of such negotiations and Newmont cannot predict the likelihood of additional expenditures related to this matter. Dawn Mining Company LLC (“Dawn”) - 51% Newmont Owned Midnite Mine Site and Mill Site . Dawn previously leased an open pit uranium mine, currently inactive, on the Spokane Indian Reservation in the State of Washington. The mine site is subject to regulation by agencies of the U.S. Department of Interior (the Bureau of Indian Affairs and the Bureau of Land Management), as well as the U.S. Environmental Protection Agency (“EPA”). As per the Consent Decree approved by the U.S. District Court for the Eastern District of Washington on January 17, 2012, the following actions were required of Newmont, Dawn, the Department of the Interior and the EPA: (i) Newmont and Dawn would design, construct and implement the cleanup plan selected by the EPA in 2006 for the Midnite Mine site; (ii) Newmont and Dawn would reimburse the EPA for its costs associated with overseeing the work; (iii) the Department of the Interior would contribute a lump sum amount toward past EPA costs and future costs related to the cleanup of the Midnite Mine site; (iv) Newmont and Dawn would be responsible for all other EPA oversight costs and Midnite Mine site cleanup costs and (v) Newmont would post a surety bond for work at the site. During 2012, the Department of Interior contributed its share of past EPA costs and future costs related to the cleanup of the Midnite Mine site in a lump sum payment of $42 , which Newmont classified as restricted assets with interest on the consolidated balance sheets for all periods presented. Additionally in 2012, Newmont initiated the remedial design process and subsequently submitted interim process update reports at the 30% design, 60% design and 90% design level of completion, which were approved by the EPA in July 2012, April 2014 and April 2015, respectively. Upon approval by the EPA of the 90% design coupled with the resolution of uncertainties regarding site access and material use, the expected remediation design was reasonably certain and Newmont commissioned an independent cost estimate of the overall project costs based on the 90% design. The remediation liability for the Midnite Mine site and Mill site is approximately $215 at June 30, 2016 . Other Legal Matters Minera Yanacocha S.R.L. - 51.35% Newmont Owned Choropampa . In June 2000, a transport contractor of Yanacocha spilled approximately 151 kilograms of elemental mercury near the town of Choropampa, Peru, which is located 53 miles (85 kilometers) southwest of the Yanacocha mine. Elemental mercury is not used in Yanacocha’s operations but is a by-product of gold mining and was sold to a Lima firm for use in medical instruments and industrial applications. A comprehensive health and environmental remediation program was undertaken by Yanacocha in response to the incident. In August 2000, Yanacocha paid under protest a fine of 1,740,000 Peruvian soles (approximately $0.5) to the Peruvian government. Yanacocha has entered into settlement agreements with a number of individuals impacted by the incident. As compensation for the disruption and inconvenience caused by the incident, Yanacocha entered into agreements with and provided a variety of public works in the three communities impacted by this incident. Yanacocha cannot predict the likelihood of additional expenditures related to this matter. Additional lawsuits relating to the Choropampa incident were filed against Yanacocha in the local courts of Cajamarca, Peru, in May 2002 by over 900 Peruvian citizens. A significant number of the plaintiffs in these lawsuits entered into settlement agreements with Yanacocha prior to filing such claims. In April 2008, the Peruvian Supreme Court upheld the validity of these settlement agreements, which the Company expects to result in the dismissal of all claims brought by previously settled plaintiffs. Yanacocha has also entered into settlement agreements with approximately 350 additional plaintiffs. The claims asserted by approximately 200 plaintiffs remain. In 2011, Yanacocha was served with 23 complaints alleging grounds to nullify the settlements entered into between Yanacocha and the plaintiffs. Yanacocha has answered the complaints and the court has dismissed several of the matters and the plaintiffs have filed appeals. All appeals were referred to the Civil Court of Cajamarca, which affirmed the decisions of the lower court judge. The plaintiffs have filed appeals of such orders before the Supreme Court. Some of these appeals were dismissed by the Supreme Court in favor of Yanacocha and others are pending resolution. Yanacocha will continue to vigorously defend its position. Neither the Company nor Yanacocha can reasonably estimate the ultimate loss relating to such claims. Administrative Actions . The Peruvian government agency responsible for environmental evaluation and inspection, Organismo Evaluacion y Fiscalizacion Ambiental (“OEFA”), conducts periodic reviews of the Yanacocha site. In 2011, 2012, 2013, the first quarter of 2015 and second quarter of 2016, OEFA issued notices of alleged violations of OEFA standards to Yanacocha and Conga relating to past inspections. OEFA has resolved some alleged violations with minimal or no findings. Total fines for all outstanding OEFA alleged violations remain dependent upon the number of units associated with the alleged violations. In the first quarter of 2015, the water authority of Cajamarca issued notices of alleged regulatory violations. The alleged OEFA violations currently range from zero to 40,372 units and the water authority alleged violations range from zero to 20,000 units, with each unit having a potential fine equivalent to approximately $.00118 ( $0 to $71 ). Yanacocha and Conga are responding to all notices of alleged violations, but cannot reasonably predict the outcome of the agency allegations. Conga Project Constitutional Claim . On October 18, 2012, Marco Antonio Arana Zegarra filed a constitutional claim against the Ministry of Energy and Mines and Yanacocha requesting the Court to order the suspension of the Conga project as well as to declare not applicable the October 27, 2010, directorial resolution approving the Conga project Environmental Impact Assessment (“EIA”). On October 23, 2012, a Cajamarca judge dismissed the claims based on formal grounds finding that: (i) plaintiffs had not exhausted previous administrative proceedings; (ii) the directorial resolution approving the Conga EIA is valid, and was not challenged when issued in the administrative proceedings; (iii) there was inadequate evidence to conclude that the Conga project is a threat to the constitutional right of living in an adequate environment and; (iv) the directorial resolution approving the Conga project EIA does not guarantee that the Conga project will proceed, so there was no imminent threat to be addressed by the Court. The plaintiffs appealed the dismissal of the case. The Civil Court of the Superior Court of Cajamarca confirmed the above mentioned resolution and the plaintiff presented an appeal. On March 13, 2015, the Constitutional Court published its ruling stating that the case should be sent back to the first court with an order to formally admit the case and start the judicial process in order to review the claim and the proofs presented by the plaintiff. Yanacocha has answered the claim. Neither the Company nor Yanacocha can reasonably predict the outcome of this litigation. Yanacocha Tax Dispute. In 2000, Yanacocha paid Buenaventura and Minas Conga S.R.L. a total of $29 to assume their respective contractual positions in mining concession agreements with Chaupiloma Dos de Cajamarca S.M.R.L. The contractual rights allowed Yanacocha the opportunity to conduct exploration on the concessions, but not a purchase of the concessions. The tax authority alleges that the payments to Buenaventura and Minas Conga S.R.L. were acquisitions of mining concessions requiring the amortization of the amounts under the Peru Mining Law over the life of the mine. Yanacocha expensed the amounts at issue in the initial year since the payments were not for the acquisition of a concession but rather these expenses represent the payment of an intangible and therefore, amortizable in a single year or proportionally for up to ten years according to Income Tax Law. In 2010, the tax court in Peru ruled in favor of Yanacocha and the tax authority appealed the issue to the judiciary. The first appellate court confirmed the ruling of the tax court in favor of Yanacocha. However, in November, 2015, a Superior Court in Peru made an appellate decision overturning the two prior findings in favor of Yanacocha. Yanacocha has appealed the Superior Court ruling to the Peru Supreme Court. The potential liability in this matter is in the form of fines and interest in an amount up to $75 . While the Company has assessed that the likelihood of a ruling against Yanacocha in the Supreme Court as remote, it is not possible to fully predict the outcome of this litigation. PT Newmont Nusa Tenggara – 31.5% Newmont Owned Under the Batu Hijau Contract of Work, beginning in 2006 and continuing through 2010, a portion of PTNNT’s shares were required to be offered for sale, first, to the Indonesian government or, second, to Indonesian nationals, equal to the difference between the following percentages and the percentage of shares already owned by the Indonesian government or Indonesian nationals (if such number is positive): 23% by March 31, 2006; 30% by March 31, 2007; 37% by March 31, 2008; 44% by March 31, 2009; and 51% by March 31, 2010. As PT Pukuafu Indah, an Indonesian national, owned a 20% interest in PTNNT at all relevant times, in 2006, a 3% interest was required to be offered for sale and, in each of 2007 through 2010, an additional 7% interest was required to be offered (for an aggregate 31% interest). The price at which such interests were offered for sale to the Indonesian parties was the fair market value of such interest considering PTNNT as a going concern, as agreed with the Indonesian government. Following certain disputes and an arbitration with the Indonesian government, in November and December 2009, sale agreements were concluded pursuant to which the 2006, 2007 and 2008 shares were sold to PT Multi Daerah Bersaing (“PTMDB”), the nominee of the local governments, and the 2009 shares were sold to PTMDB in February 2010, resulting in PTMDB owning a 24% interest in PTNNT. On December 17, 2010, the Ministry of Energy & Mineral Resources, acting on behalf of the Indonesian government, accepted the offer to acquire the final 7% interest in PTNNT. Subsequently, the Indonesian government designated Pusat Investasi Pemerintah (“PIP”), an agency of the Ministry of Finance, as the entity that will buy the final stake. On May 6, 2011, PIP and the foreign shareholders entered into a definitive agreement for the sale and purchase of the final 7% divestiture stake, subject to receipt of approvals from certain Indonesian government ministries. Subsequent to signing the agreement, a disagreement arose between the Ministry of Finance and the Indonesian parliament in regard to whether parliamentary approval was needed to allow PIP to make the share purchase. In July 2012, the Constitutional Court ruled that parliament approval is required for PIP to use state funds to purchase the shares, which approval was never obtained. PIP and the foreign shareholders have not further extended the period in the definitive agreement for satisfaction of the conditions. Further disputes may arise in regard to the divestiture of the 2010 shares. Refer to Note 1 for additional information regarding the anticipated sale of PTNNT. NWG Investments Inc. v. Fronteer Gold Inc. In April 2011, Newmont acquired Fronteer Gold Inc. (“Fronteer”). Fronteer acquired NewWest Gold Corporation (“NewWest Gold”) in September 2007. At the time of that acquisition, NWG Investments Inc. (“NWG”) owned approximately 86% of NewWest Gold and an individual named Jacob Safra owned or controlled 100% of NWG. Prior to its acquisition of NewWest Gold, Fronteer entered into a June 2007 lock-up agreement with NWG providing that, among other things, NWG would support Fronteer’s acquisition of NewWest Gold. At that time, Fronteer owned approximately 47% of Aurora Energy Resources Inc. (“Aurora”), which, among other things, had a uranium exploration project in Labrador, Canada. NWG contends that, during the negotiations leading up to the lock-up agreement, Fronteer represented to NWG, among other things, that Aurora would commence uranium mining in Labrador by 2013, that this was a firm date, that Aurora faced no current environmental issues in Labrador and that Aurora’s competitors faced delays in commencing uranium mining. NWG further contends that it entered into the lock-up agreement and agreed to support Fronteer’s acquisition of NewWest Gold in reliance upon these purported representations. On October 11, 2007, less than three weeks after the Fronteer-NewWest Gold transaction closed, a member of the Nunatsiavut Assembly introduced a motion calling for the adoption of a moratorium on uranium mining in Labrador. On April 8, 2008, the Nunatsiavut Assembly adopted a three -year moratorium on uranium mining in Labrador. NWG contends that Fronteer was aware during the negotiations of the NWG/Fronteer lock-up agreement that the Nunatsiavut Assembly planned on adopting this moratorium and that its adoption would preclude Aurora from commencing uranium mining by 2013, but Fronteer nonetheless fraudulently induced NWG to enter into the lock-up agreement. On September 24, 2012, NWG served a summons and complaint on the Company, and then amended the complaint to add Newmont Canada Holdings ULC as a defendant. The complaint also named Fronteer Gold Inc. and Mark O’Dea as defendants. The complaint sought rescission of the merger between Fronteer and NewWest Gold and $750 in damages. In August 2013 the Supreme Court of New York, New York County issued an order granting the defendants’ motion to dismiss on forum non conveniens. Subsequently, NWG filed a notice of appeal of the decision and then a notice of dismissal of the appeal on March 24, 2014. On February 26, 2014, NWG filed a lawsuit in Ontario Superior Court of Justice against Fronteer Gold Inc., Newmont Mining Corporation, Newmont Canada Holdings ULC, Newmont FH B.V. and Mark O’Dea. The Ontario complaint is based upon substantially the same allegations contained in the New York lawsuit with claims for fraudulent and negligent misrepresentation. NWG seeks disgorgement of profits since the close of the NWG deal on September 24, 2007 and damages in the amount of C $1.2 billion. Newmont, along with other defendants, served the plaintiff with its statement of defense on October 17, 2014. Newmont intends to vigorously defend this matter, but cannot reasonably predict the outcome. Investigations We occasionally identify or are apprised of information or allegations that certain employees, affiliates, agents or associated persons may have engaged in unlawful conduct for which we might be held responsible. We are conducting an investigation, with the assistance of outside counsel, relating to certain business activities of the Company and its affiliates and contractors in countries outside the U.S. The investigation includes a review of compliance with the requirements of the U.S. Foreign Corrupt Practices Act and other applicable laws and regulations. The Company is working with the U.S. Securities and Exchange Commission and the U.S. Department of Justice with respect to the investigation. In March 2016, the Company entered into a one -year agreement with the U.S. Securities and Exchange Commission tolling the statute of limitations relating to the investigation, and in April 2016, entered into a similar agreement with the U.S. Department of Justice. As of the filing of these financial statements, we cannot predict the outcome of these matters. Accordingly, no provision with respect to these matters has been made in our consolidated financial statements. See also Item 1A of the Company’s most recent Form 10-K, filed with the SEC on February 17, 2016 under the heading “Our business is subject to the U.S. Foreign Corrupt Practices Act and other extraterritorial and domestic anti-bribery laws, a breach or violation of which could lead to civil and criminal fines and penalties, loss of licenses or permits and other collateral consequences and reputational harm.” Other Commitments and Contingencies The Company has minimum royalty obligations on one of its producing mines in Nevada for the life of the mine. Amounts paid as a minimum royalty (where production royalties are less than the minimum obligation) in any year are recoverable in future years when the minimum royalty obligation is exceeded. Although the minimum royalty requirement may not be met in a particular year, the Company expects that over the mine life, gold production will be sufficient to meet the minimum royalty requirements. Royalty payments payable, net of recoverable amounts, are $28 in 2016 , $30 in 2017 , $30 in 2018 , $33 in 2019 , $35 in 2020 and $19 thereafter. On June 25, 2009, the Company completed the acquisition of the remaining 33.33% interest in Boddington from AngloGold Ashanti Australia Limited (“AngloGold”). Consideration for the acquisition consisted of $982 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 beginning in the second quarter of 2010 on one -third of gold sales from Boddington. At the acquisition date, the Company estimated the fair value of the contingent consideration at $62 . At June 30, 2016 and December 31, 2015 , the estimated fair value of the unpaid contingent consideration was approximately $12 and $10 , respectively. Changes to the estimated fair value resulting from periodic revaluations are recorded to Other expense, net . This contingent royalty is capped at $100 in aggregate payments, of which $72 has been paid to date. The Company has made no payments during 2016 and 2015 ; however, we expect $2 to be paid in the next 12 months. The range of remaining undiscounted amounts the Company could pay is between $0 and $28 . Discontinued operations include a retained royalty obligation (“Holt”) to Holloway Mining Company. Holloway Mining Company, which owned the Holt-McDermott property, was sold to St. Andrew Goldfields Ltd. (“St. Andrew”) in 2006. In January 2016, St. Andrew was acquired by Kirkland Lake Gold Inc. In 2009, the Superior Court issued a decision finding Newmont Canada Corporation (“Newmont Canada”) liable for a sliding scale royalty on production from the Holt property, which Newmont Canada appealed. In May 2011, the Ontario Court of Appeal upheld the Superior Court ruling finding Newmont liable for the sliding scale royalty, which equals 0.013% of net smelter returns multiplied by the quarterly average gold price, minus a 0.013% of net smelter returns. There is no cap on the sliding scale royalty and it will increase or decrease with changes in gold price, discount rate and gold production scenarios. At June 30, 2016 and December 31, 2015 , the estimated fair value of the Holt sliding scale royalty was $200 and $129 , respectively. Changes to the estimated fair value resulting from periodic revaluations are recorded to Income (loss) from discontinued operations . During the three and six months ended June 30, 2016 , the Company recorded a loss of $27 (net of a tax benefit of $12 ) and a loss of $53 (net of a tax benefit of $23 ), respectively. During the three and six months ended June 30, 2015 , the Company recorded a gain of $9 (net of tax expense of $4 ) and a gain of $17 (net of tax expense of $8 ), respectively. During the six months ended June 30, 2016 and 2015 , the Company paid $5 and $6 , respectively, related to the royalty. As part of its ongoing business and operations, the Company and its affiliates are required to provide surety bonds, bank letters of credit and bank guarantees as financial support for various purposes, including environmental reclamation, exploration permitting, workers compensation programs and other general corporate purposes. At June 30, 2016 and December 31, 2015 , there were $2,164 and $2,060 , respectively, of outstanding letters of credit, surety bonds and bank guarantees. The surety bonds, letters of credit and bank guarantees reflect fair value as a condition of their underlying purpose and are subject to fees competitively determined in the market place. The obligations associated with these instruments are generally related to performance requirements that the Company addresses through its ongoing operations. As the specific requirements are met, the beneficiary of the associated instrument cancels and/or returns the instrument to the issuing entity. Certain of these instruments are associated with operating sites with long-lived assets and will remain outstanding until closure. Generally, bonding requirements associated with environmental regulation are becoming more restrictive. However, the Company believes it is in compliance with all applicable bonding obligations and will be able to satisfy future bonding requirements through existing or alternative means, as they arise. Newmont is from time to time involved in various legal proceedings related to its business. Except in the above described proceedings, management does not believe that adverse decisions in any pending or threatened proceeding or that amounts that may be required to be paid by reason thereof will have a material adverse effect on the Company’s financial condition or results of operations. |
SUMMARY OF SIGNIFICANT ACCOUN29
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Jun. 30, 2016 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Risks and Uncertainties | Risks and Uncertainties As a global mining company, the Company’s revenue, profitability and future rate of growth are substantially dependent on prevailing prices for gold, copper and, to a lesser extent, silver. Historically, the commodity markets have been very volatile and there can be no assurance that commodity prices will not be subject to wide fluctuations in the future. A substantial or extended decline in commodity prices could have a material adverse effect on the Company’s financial position, results of operations, cash flows, access to capital and the quantities of reserves that the Company can economically produce. The carrying value of the Company’s Property, plant and mine development , net; Inventories; Stockpiles and ore on leach pads and Deferred income tax assets are sensitive to the outlook for commodity prices. A decline in the Company’s long-term price outlook from current levels could result in material impairment charges related to these assets. On June 30, 2016, the Company, through its subsidiaries, entered into agreements to sell its 48.5% economic interest in PTNNT, which operates the Batu Hijau copper and gold mine in Indonesia. The closing of the sale is subject to various closing conditions, some of which are outside the control of the Company, and if not satisfied could result in the sale of PTNNT not being completed. See Note 1 above for a detailed description of the closing conditions specified in the share sale and purchase agreement . In September 2014, PTNNT and the Government of Indonesia signed a Memorandum of Understanding (“MoU”) that resulted in the government agreeing to issue permits to allow PTNNT to export and sell copper concentrates from the Batu Hijau mine. The government then issued several six -month export permits since then, with the most recent permit renewal expected to expire in November 2016. Additionally, negotiations between PTNNT and the Government of Indonesia to amend the Contract of Work (the investment agreement entered into by PTNNT and the Indonesian government in 1986, which includes the right to export copper concentrates and a prohibition against new taxes, duties, and levies) remained on-going at the time that the Company entered into the agreement to sell its interest in PTNNT. In the event that the sale of the Company’s interest does not close prior to November 2016 or does not close at all, no assurances can be made with respect to the outcome of the Contract of Work negotiations and the renewal of the export permit. The failure to receive a timely renewal may negatively impact future operations and financial results a t Batu Hijau. As a result of the on-going Contract of Work renegotiations at Batu Hijau, the need for asset impairments, inventory write-downs, tax valuation allowances and other applicable accounting charges will continue to be evaluated. At this time, the Company expects operations to continue into the future until the previously announced sale closes. The total assets at Batu Hijau as of June 30, 2016 and December 31, 2015 were $3,746 and $3,4 83 , respectively. The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the accounting for and recognition and disclosure of assets, liabilities, equity, revenues and expenses. The Company must make these estimates and assumptions because certain information used is dependent on future events, cannot be calculated with a high degree of precision from data available or simply cannot be readily calculated based on generally accepted methodologies. Actual results could differ from these estimates. |
Recently Adopted and Recently Issued Accounting Pronouncements | Recently Adopted Accounting Pronouncements Employee benefit plan accounting In July 2015, the Financial Accounting Standards Board issued ASU No. 2015-12 related to defined benefit pension plans, defined contribution pension plans and health and welfare benefit plans. This update designates contract value as the only required measure for fully benefit-responsive investment contracts, simplifies and makes more effective the investment disclosure requirements for employee benefit plans and provides a simplified method for determining the measurement date for employee benefit plans. The update is effective in fiscal years, including interim periods, beginning after December 15, 2015. Adoption of this guidance, effective January 1, 2016, had no impact on the Consolidated Financial Statements or disclosures. Fair value measurement In May 2015, ASU No. 2015-07 was issued related to investments for which fair value is measured, or is eligible to be measured, using the net asset value per share practical expedient. This update removes the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the net asset value per share practical expedient. The amendment also removes certain disclosure requirements for these investments. This update will impact the annual disclosure related to pension plan assets measured at fair value. This update is effective in fiscal years, including interim periods, beginning after December 15, 2015. Adoption of this guidance, effective January 1, 2016, had no impact on the Consolidated Financial Statements. Debt issuance costs In April 2015, ASU No. 2015-03 was issued related to debt issuance costs. This update simplifies the presentation of debt issuance costs by requiring debt issuance costs to be presented as a deduction from the corresponding debt liability. The update is effective in fiscal years, including interim periods, beginning after December 15, 2015. The Company retrospectively adopted this guidance as of March 31, 2016. The Company reclassified $46 of debt issuance costs from Other non-current assets to Debt as of December 31, 2015. The December 31, 2015, balance sheet was adjusted as a result of the adoption of ASU 2015-03 as follows: At December 31, 2015 As Reported As Adjusted Other non-current assets $ $ Debt (non-current) $ $ ASU No. 2015-03 does not specifically address the accounting for deferred financing costs related to line-of-credit arrangements. In August 2015, ASU No. 2015-15 was issued allowing for debt issuance costs associated with line-of-credit arrangements to continue to be presented as assets. The Company will treat all debt issuance costs as a reduction to the carrying value of debt. Consolidations In February 2015, ASU No. 2015-02 was issued related to consolidations. This update makes some targeted changes to current consolidation guidance and impacts both the voting and the variable interest consolidation models. In particular, the update changes how companies determine whether limited partnerships or similar entities are variable interest entities. The update is effective in fiscal years, including interim periods, beginning after December 15, 2015. The Company currently consolidates certain variable interest entities. A doption of this guidance, effective January 1, 2016, had no impact on the Consolidated Financial Statements or disclosures. Recently Issued Accounting Pronouncements Stock-based compensation In March 2016, ASU No. 2016-09 was issued related to stock-based compensation. The new guidance simplifies the accounting for stock-based compensation transactions, including income tax consequences, classification of awards as either equity or liabilities and classification on the statement of cash flows. This update is effective in fiscal years, including interim periods, beginning after December 15, 2016, and early adoption is permitted. The Company is currently evaluating this guidance and expects an insignificant impact on the Consolidated Financial Statements and disclosures. Leases In February 2016, ASU No. 2016-02 was issued related to leases. The new guidance modifies the classification criteria and requires lessees to recognize the assets and liabilities arising from most leases on the balance sheet. This update is effective in fiscal years, including interim periods, beginning after December 15, 2018, and early adoption is permitted. The Company is currently evaluating this guidance and the impact it will have on the Consolidated Financial Statements and disclosures. Investments In January 2016, ASU No. 2016-01 was issued related to financial instruments. The new guidance requires entities to measure equity investments that do not result in consolidation and are not accounted for under the equity method at fair value and recognize any changes in fair value in net income. This new guidance also updates certain disclosure requirements for these investments. This update is effective in fiscal years, including interim periods, beginning after December 15, 2017, and early adoption is not permitted. The Company is currently evaluating this guidance and the impact it will have on the Consolidated Financial Statements and disclosures. Inventory In July 2015, ASU No. 2015-11 was issued related to inventory, simplifying the subsequent measurement of inventories by replacing the lower of cost or market test with a lower of cost and net realizable value test. The update is effective in fiscal years, including interim periods, beginning after December 15, 2016, and early adoption is permitted. The Company does not expect the updated guidance to have an impact on the Consolidated Financial Statements or disclosures. Revenue recognition In May 2014, ASU No. 2014-09 was issued related to revenue from contracts with customers. This ASU was further amended in August 2015, March 2016, April 2016 and May 2016 by ASU No. 2015-14, No. 2016-08, No. 2016-10 and No. 2016-12, respectively. The new standard provides a five-step approach to be applied to all contracts with customers and also requires expanded disclosures about revenue recognition. In August 2015, the effective date was deferred to reporting periods, including interim periods, beginning after December 15, 2017, and will be applied retrospectively. Early adoption is not permitted. The Company is currently evaluating this guidance and the impact it will have on the Consolidated Financial Statements and disclosures. |
SUMMARY OF SIGNIFICANT ACCOUN30
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
ASU No. 2015-03 - Debt issuance costs | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Recently Adopted Accounting Pronouncements | At December 31, 2015 As Reported As Adjusted Other non-current assets $ $ Debt (non-current) $ $ |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
SEGMENT INFORMATION | |
Financial Information of Company's Segments | Advanced Income (Loss) Costs Depreciation Projects, Research before Income Applicable and and Development and Mining Tax Capital Sales to Sales Amortization and Exploration and Other Items Expenditures (1) Three Months Ended June 30, 2016 Carlin $ $ $ $ $ $ Phoenix: Gold Copper Total Phoenix Twin Creeks Long Canyon — — — CC&V (2) Other North America — — — North America Yanacocha Merian — — — Other South America — — — South America Boddington: Gold Copper Total Boddington — Tanami Kalgoorlie Batu Hijau: Gold Copper Total Batu Hijau (3) — Other Asia Pacific — — — Asia Pacific Ahafo Akyem Other Africa — — — — — Africa Corporate and Other — — Consolidated $ $ $ $ $ $ (1) Includes a decrease in accrued capital expenditures of $9 ; consolidated capital expenditures on a cash basis were $294 . (2) The Company acquired the CC&V gold mining business on August 3, 2015. (3) On June 30, 2016, the Company announced the anticipated sale of Batu Hijau. Refer to Note 1 for additional information. Advanced Income (Loss) Costs Depreciation Projects, Research before Income Applicable and and Development and Mining Tax Capital Sales to Sales Amortization and Exploration and Other Items Expenditures (1) Three Months Ended June 30, 2015 Carlin $ $ $ $ $ $ Phoenix: Gold Copper Total Phoenix Twin Creeks Long Canyon — — — Other North America — — — North America Yanacocha Merian — — — Other South America — — — South America — Boddington: Gold Copper Total Boddington — Tanami Waihi (2) Kalgoorlie Batu Hijau: Gold Copper Total Batu Hijau (3) Other Asia Pacific — — Asia Pacific Ahafo Akyem Other Africa — — — — — Africa Corporate and Other — — Consolidated $ $ $ $ $ $ (1) Includes an increase in accrued capital expenditures of $7 ; consolidated capital expenditures on a cash basis were $322 . (2) On October 29, 2015, the Company sold the Waihi mine. (3) On June 30, 2016, the Company announced the anticipated sale of Batu Hijau. Refer to Note 1 for additional information. Advanced Income (Loss) Costs Depreciation Projects, Research before Income Applicable and and Development and Mining Tax Capital Sales to Sales Amortization and Exploration and Other Items Expenditures (1) Six Months Ended June 30, 2016 Carlin $ $ $ $ $ $ Phoenix: Gold Copper Total Phoenix Twin Creeks Long Canyon — — — CC&V (2) Other North America — — — North America Yanacocha Merian — — Other South America — — — South America Boddington: Gold Copper Total Boddington — Tanami Kalgoorlie Batu Hijau: Gold Copper Total Batu Hijau (3) Other Asia Pacific — — — Asia Pacific Ahafo Akyem Other Africa — — — — Africa Corporate and Other — — Consolidated $ $ $ $ $ $ (1) Includes a decrease in accrued capital expenditures of $33 ; consolidated capital expenditures on a cash basis were $591 . (2) The Company acquired the CC&V gold mining business on August 3, 2015. (3) On June 30, 2016, the Company announced the anticipated sale of Batu Hijau. Refer to Note 1 for additional information. Advanced Income (Loss) Costs Depreciation Projects, Research before Income Applicable and and Development and Mining Tax Capital Sales to Sales Amortization and Exploration and Other Items Expenditures (1) Six Months Ended June 30, 2015 Carlin $ $ $ $ $ $ Phoenix: Gold Copper Total Phoenix Twin Creeks Long Canyon — — — Other North America — — — North America Yanacocha Merian — — — Other South America — — — South America Boddington: Gold Copper Total Boddington Tanami Waihi (2) Kalgoorlie Batu Hijau: Gold Copper Total Batu Hijau (3) Other Asia Pacific — — Asia Pacific Ahafo Akyem Other Africa — — — — Africa Corporate and Other — — Consolidated $ $ $ $ $ $ (1) Includes an increase in accrued capital expenditures of $11 ; consolidated capital expenditures on a cash basis were $606 . (2) On October 29, 2015, the Company sold the Waihi mine. (3) On June 30, 2016, the Company announced the anticipated sale of Batu Hijau. Refer to Note 1 for additional information. |
RECLAMATION AND REMEDIATION (Ta
RECLAMATION AND REMEDIATION (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
RECLAMATION AND REMEDIATION | |
Reclamation and Remediation Expense | Three Months Ended Six Months Ended June 30, June 30, 2016 2015 2016 2015 Reclamation Accretion $ $ $ $ Remediation Remediation Accretion $ $ $ $ |
Reconciliation of Reclamation Liabilities | 2016 2015 Reclamation balance at January 1, $ $ Additions, changes in estimates and other Payments and other Accretion expense Reclamation balance at June 30, $ $ |
Reconciliation of Remediation Liabilities | 2016 2015 Remediation balance at January 1, $ $ Additions, changes in estimates and other Payments and other Accretion expense Remediation balance at June 30, $ $ |
INCOME AND MINING TAXES (Tables
INCOME AND MINING TAXES (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
INCOME AND MINING TAXES | |
Income and Mining Tax Expense Reconciliation | Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Income (loss) before income and mining tax and other items $ $ $ $ Tax at statutory rate % $ % $ % $ % $ Reconciling items: Percentage depletion (1) % % % % Change in valuation allowance on deferred tax assets % % % % Mining and other taxes % % % % Tax impact on sale of assets — % — — % — % — % — Effect of foreign earnings, net of credits % % % % Other (1) % % % % Income and mining tax expense % $ % $ % $ % $ (1) Includes the reduction to percentage depletion and the domestic production deduction from the filing of the 2015 tax return during the quarter. |
NET INCOME (LOSS) ATTRIBUTABL34
NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS | |
Schedule of Net Income (Loss) Attributable to Noncontrolling Interests | Three Months Ended Six Months Ended June 30, June 30, 2016 2015 2016 2015 Minera Yanacocha $ $ $ $ Batu Hijau TMAC — — Merian — — Other — — $ $ $ $ |
INCOME (LOSS) PER SHARE (Tables
INCOME (LOSS) PER SHARE (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
INCOME (LOSS) PER COMMON SHARE | |
Summary of Income (Loss) per Common Share, Basic and Diluted | Three Months Ended Six Months Ended June 30, June 30, 2016 2015 2016 2015 Net income (loss) attributable to Newmont stockholders: Continuing operations $ $ $ $ Discontinued operations $ $ $ $ Weighted average common shares (millions): Basic Effect of employee stock-based awards Diluted Income (loss) per common share: Basic: Continuing operations $ $ $ $ Discontinued operations $ $ $ $ Diluted: Continuing operations $ $ $ $ Discontinued operations $ $ $ $ |
EMPLOYEE PENSION AND OTHER BE36
EMPLOYEE PENSION AND OTHER BENEFIT PLANS (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
EMPLOYEE PENSION AND OTHER BENEFIT PLANS | |
Employee Pension and Other Benefit Plans | Three Months Ended Six Months Ended June 30, June 30, 2016 2015 2016 2015 Pension benefit costs, net: Service cost $ $ $ $ Interest cost Expected return on plan assets Amortization, net $ $ $ $ Three Months Ended Six Months Ended June 30, June 30, 2016 2015 2016 2015 Other benefit costs, net: Service cost $ $ $ $ Interest cost Amortization, net — — $ — $ $ — $ |
STOCK BASED COMPENSATION (Table
STOCK BASED COMPENSATION (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
STOCK-BASED COMPENSATION | |
Stock Option and Other Stock Based Compensation | Three Months Ended Six Months Ended June 30, June 30, 2016 2015 2016 2015 Stock-based compensation: Performance leveraged stock units $ $ $ $ Restricted stock units Strategic stock units $ $ $ $ |
FAIR VALUE ACCOUNTING (Tables)
FAIR VALUE ACCOUNTING (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
FAIR VALUE ACCOUNTING | |
Fair Value Measurement of Assets and Liabilities | Fair Value at June 30, 2016 Total Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ $ $ — $ — Restricted assets (1) — — Marketable equity securities: Extractive industries — — Other — — Marketable debt securities: Asset backed commercial paper — — Auction rate securities — — Trade receivable from provisional copper and gold concentrate sales, net — — $ $ $ — $ Liabilities: Debt (2) $ $ — $ $ — Derivative instruments, net: Foreign exchange forward contracts — — Diesel forward contracts — — Boddington contingent consideration — — Holt property royalty — — $ $ — $ $ Fair Value at December 31, 2015 Total Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ $ $ — $ — Restricted assets (1) — — Marketable equity securities: Extractive industries — — Other — — Marketable debt securities: Asset backed commercial paper — — Auction rate securities — — Trade receivable from provisional copper and gold concentrate sales, net — — $ $ $ — $ Liabilities: Debt (2) $ $ — $ $ — Derivative instruments, net: Foreign exchange forward contracts — — Diesel forward contracts — — Boddington contingent consideration — — Holt property royalty — — $ $ — $ $ (1) Restricted assets include cash and marketable securities whose carrying amounts approximate their fair value. (2) Debt, exclusive of capital leases, is carried at amortized cost. The outstanding carrying value was $5,550 and $6,167 at June 30, 2016 and December 31, 2015 , respectively. The fair value measurement of debt was based on prices obtained from readily available pricing sources. |
Fair Value Inputs Assets Liabilities Quantitative Information | At June 30, Range/Weighted Description 2016 Valuation technique Unobservable input average Auction rate securities $ Risk-adjusted indicative price Recoverability rate % Asset backed commercial paper $ Risk-adjusted indicative price Recoverability rate % Boddington contingent consideration $ Monte Carlo Discount rate % Short-term gold price $ Long-term gold price $ Short-term copper price $ Long-term copper price $ Long-term Australian to U.S. dollar exchange rate $ Holt property royalty $ Monte Carlo Discount rate % Short-term gold price $ Long-term gold price $ Gold production scenarios (in 000's of ounces) 365 - 1,603 At December 31, Range/Weighted Description 2015 Valuation technique Unobservable input average Auction rate securities $ Risk-adjusted indicative price Recoverability rate % Asset backed commercial paper $ Risk-adjusted indicative price Recoverability rate % Boddington contingent consideration $ Monte Carlo Discount rate % Short-term gold price $ Long-term gold price $ Short-term copper price $ Long-term copper price $ Long-term Australian to U.S. dollar exchange rate $ Holt property royalty $ Monte Carlo Discount rate % Short-term gold price $ Long-term gold price $ Gold production scenarios (in 000's of ounces) 398 - 1,636 |
Changes in the Fair Value of the Company's Level 3 Financial Assets | Asset Auction Backed Boddington Holt Rate Commercial Total Contingent Property Total Securities (1) Paper (1) Assets Consideration (2) Royalty (3) Liabilities Fair value at December 31, 2015 $ $ $ $ $ $ Settlements — — — — Revaluation — Fair value at June 30, 2016 $ $ $ $ $ $ Asset Auction Backed Boddington Holt Rate Commercial Total Contingent Property Total Securities (1) Paper (1) Assets Consideration (2) Royalty (3) Liabilities Fair value at December 31, 2014 $ $ $ $ $ $ Settlements — — — — Revaluation — Fair value at June 30, 2015 $ $ $ $ $ $ (1) The gain (loss) recognized is included in Accumulated other comprehensive income (loss) . (2) The gain (loss) recognized is included in Other expense, net . (3) The gain (loss) recognized is included in Income (loss) from discontinued operations . |
Changes in the Fair Value of the Company's Level 3 Financial Liabilities | Asset Auction Backed Boddington Holt Rate Commercial Total Contingent Property Total Securities (1) Paper (1) Assets Consideration (2) Royalty (3) Liabilities Fair value at December 31, 2015 $ $ $ $ $ $ Settlements — — — — Revaluation — Fair value at June 30, 2016 $ $ $ $ $ $ _ Asset Auction Backed Boddington Holt Rate Commercial Total Contingent Property Total Securities (1) Paper (1) Assets Consideration (2) Royalty (3) Liabilities Fair value at December 31, 2014 $ $ $ $ $ $ Settlements — — — — Revaluation — Fair value at June 30, 2015 $ $ $ $ $ $ (1) The gain (loss) recognized is included in Accumulated other comprehensive income (loss) . (2) The gain (loss) recognized is included in Other expense, net . (3) The gain (loss) recognized is included in Income (loss) from discontinued operations . |
DERIVATIVE INSTRUMENTS (Tables)
DERIVATIVE INSTRUMENTS (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
DERIVATIVE INSTRUMENTS | |
Fair Values of Derivative Instruments Designated as Hedges | Fair Values of Derivative Instruments At June 30, 2016 Other Other Other Other Current Non-current Current Non-current Assets Assets Liabilities Liabilities Foreign currency exchange contracts: A$ operating fixed forwards $ — $ — $ $ Diesel fixed forwards Total derivative instruments $ $ $ $ Fair Values of Derivative Instruments At December 31, 2015 Other Other Other Other Current Non-current Current Non-current Assets Assets Liabilities Liabilities Foreign currency exchange contracts: A$ operating fixed forwards $ — $ — $ $ Diesel fixed forwards — — Total derivative instruments $ — $ — $ $ |
Location and Amount of Gains (Losses) Reported in Condensed Consolidated Financial Statements | Foreign Currency Diesel Fixed Interest Exchange Contracts Forward Contracts Rate Contracts 2016 2015 2016 2015 2016 2015 For the three months ended June 30, Cash flow hedging relationships: Gain (loss) recognized in Other comprehensive income (loss) (effective portion) $ $ $ $ $ — $ — Gain (loss) reclassified from Accumulated other comprehensive income (loss) into income (loss) (effective portion) (1) $ $ $ $ $ $ Gain (loss) reclassified from Accumulated other comprehensive income (loss) into income (loss) (ineffective portion) (2) $ — $ — $ $ — $ — $ — For the six months ended June 30, Cash flow hedging relationships: Gain (loss) recognized in Other comprehensive income (loss) (effective portion) $ $ $ $ $ — $ — Gain (loss) reclassified from Accumulated other comprehensive income (loss) into income (loss) (effective portion) (1) $ $ $ $ $ $ Gain (loss) reclassified from Accumulated other comprehensive income (loss) into income (loss) (ineffective portion) (2) $ — $ — $ $ $ — $ — (1) The gain (loss) recognized for the effective portion of cash flow hedges is included in Cost applicable to sales and Interest expense , net . (2) The ineffective portion recognized for cash flow hedges is included in Other income, net . |
Cash Flow Hedges | Foreign exchange forward contracts | |
DERIVATIVE INSTRUMENTS | |
Outstanding Derivative Contracts | Expected Maturity Date 2016 2017 2018 Total/Average A$ Operating Fixed Forward Contracts: A$ notional (millions) Average rate ($/A$) Expected hedge ratio % % % |
Cash Flow Hedges | Diesel forward contracts | |
DERIVATIVE INSTRUMENTS | |
Outstanding Derivative Contracts | Expected Maturity Date 2016 2017 Total/Average Diesel Fixed Forward Contracts: Diesel gallons (millions) Average rate ($/gallon) Expected hedge ratio % % |
INVESTMENTS (Tables)
INVESTMENTS (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
INVESTMENTS | |
Schedule of reconciliation of cost to fair value for Available-for-sale and other investments | At June 30, 2016 Cost/Equity Unrealized Fair/Equity Basis Gain Loss Basis Current: Marketable Equity Securities: Gabriel Resources Ltd. $ $ $ — $ Other $ $ $ $ Non-current: Marketable Debt Securities: Asset backed commercial paper $ $ $ — $ Auction rate securities — Marketable Equity Securities — Other investments, at cost — — Equity Method Investments: TMAC — — Minera La Zanja S.R.L. — — Novo Resources Corp. — — Euronimba Ltd. — — $ $ $ $ At December 31, 2015 Cost/Equity Unrealized Fair/Equity Basis Gain Loss Basis Current: Marketable Equity Securities: Gabriel Resources Ltd. $ $ — $ — $ Other $ $ $ $ Non-current: Marketable Debt Securities: Asset backed commercial paper $ $ $ — $ Auction rate securities — Marketable Equity Securities: Regis Resources Ltd. — Other — — Other investments, at cost — — Equity Method Investments: TMAC — — Minera La Zanja S.R.L. — — Novo Resources Corp. — — Euronimba Ltd. — — $ $ $ $ |
Schedule of investments in a continuous unrealized loss position | Less than 12 Months 12 Months or Greater Total At June 30, 2016 Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Marketable equity securities $ $ $ — $ — $ $ Auction rate securities — — $ $ $ $ $ $ Less than 12 Months 12 Months or Greater Total At December 31, 2015 Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Marketable equity securities $ $ $ — $ — $ $ Auction rate securities — — $ $ $ $ $ $ |
INVENTORIES (Tables)
INVENTORIES (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
INVENTORIES | |
Summary of Inventories | At June 30, At December 31, 2016 2015 Materials and supplies $ $ Concentrate and copper cathode In-process Precious metals $ $ |
STOCKPILES AND ORE ON LEACH P42
STOCKPILES AND ORE ON LEACH PADS (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
STOCKPILES AND ORE ON LEACH PADS | |
Stockpiles and Ore on Leach Pads | At June 30, At December 31, 2016 2015 Current: Stockpiles $ $ Ore on leach pads $ $ Non-current: Stockpiles $ $ Ore on leach pads $ $ |
Stockpiles and Ore on Leach Pads, by Segment | At June 30, At December 31, 2016 2015 Stockpiles and ore on leach pads: Carlin $ $ Phoenix Twin Creeks Long Canyon — CC&V Yanacocha Merian Boddington Tanami Kalgoorlie Batu Hijau Ahafo Akyem $ $ |
OTHER LIABILITIES (Tables)
OTHER LIABILITIES (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
OTHER LIABILITIES | |
Other Liabilities | At June 30, At December 31, 2016 2015 Other current liabilities: Accrued operating costs $ $ Accrued capital expenditures Reclamation and remediation liabilities Accrued interest Derivative instruments Royalties Holt property royalty Taxes other than income and mining Other $ $ Other non-current liabilities: Holt property royalty $ $ Income and mining taxes Power supply agreements Social development obligations Derivative instruments Boddington contingent consideration Other $ $ |
CHANGES IN EQUITY (Tables)
CHANGES IN EQUITY (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
CHANGES IN EQUITY | |
Changes in Equity | Six Months Ended June 30, 2016 2015 Common stock: At beginning of period $ $ Stock-based awards Stock issuance — At end of period Additional paid-in capital: At beginning of period Stock-based awards Stock issuance — Sale of noncontrolling interests — At end of period Accumulated other comprehensive income (loss): At beginning of period Other comprehensive income (loss) At end of period Retained earnings: At beginning of period Net income (loss) attributable to Newmont stockholders Dividends paid At end of period Noncontrolling interests: At beginning of period Net income (loss) attributable to noncontrolling interests Dividends paid to noncontrolling interests Funding from noncontrolling interests, net Sale of noncontrolling interests, net — Other At end of period Total equity $ $ |
RECLASSIFICATIONS OUT OF ACCU45
RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | |
Change in Accumulated Other Comprehensive Income (Loss) | Pension and Changes in Unrealized gain Foreign other fair value of (loss) on currency post ‑retirement cash flow marketable translation benefit hedge securities, net adjustments adjustments instruments Total Balance at December 31, 2015 $ $ $ $ $ Change in other comprehensive income (loss) before reclassifications Reclassifications from accumulated other comprehensive income (loss) — Net current-period change Balance at June 30, 2016 $ $ $ $ $ |
Schedule of Reclassifications Out of Accumulated Other Comprehensive Income (Loss) | Details about Accumulated Other Comprehensive Income (Loss) Components Amount Reclassified from Accumulated Other Comprehensive Income (Loss) Affected Line Item in the Condensed Consolidated Statements of Income Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Marketable securities adjustments: Sale of marketable securities $ — $ — $ $ Other income, net Impairment of marketable securities — — Other income, net Total before tax — Tax benefit (expense) — — — — Net of tax $ — $ $ $ Pension and other post-retirement benefit adjustments: Amortization $ $ $ $ (1) Tax benefit (expense) Net of tax $ $ $ $ Hedge instruments adjustments: Operating cash flow hedges (effective portion) $ $ $ $ Costs applicable to sales Operating cash flow hedges (ineffective portion) — Other income, net Interest rate contracts Interest expense, net Total before tax Tax benefit (expense) Net of tax $ $ $ $ Total reclassifications for the period, net of tax $ $ $ $ (1) Included in General and administrative or included as a component of Costs applicable to sales, which are incurred in the inventory/production process . Refer to Note 2 to the Consolidated Financial Statements for the year ended December 31, 2015 filed February 17, 2016 on Form 10-K for information on costs that benefit the inventory/production process. |
NET CHANGE IN OPERATING ASSET46
NET CHANGE IN OPERATING ASSETS AND LIABILITIES (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
NET CHANGE IN OPERATING ASSETS AND LIABILITIES | |
Net Cash Provided from Operations Attributable to the Net Change in Operating Assets and Liabilities | Six Months Ended June 30, 2016 2015 Decrease (increase) in operating assets: Trade and other accounts receivables $ $ Inventories, stockpiles and ore on leach pads EGR refinery and other assets (1) — Other assets Increase (decrease) in operating liabilities: Accounts payable EGR refinery and other liabilities (1) — Reclamation liabilities Other accrued liabilities $ $ (1) On July 24, 2015, the Company sold its ownership interest in European Gold Refinery Holdings (“EGR”). |
CONDENSED CONSOLIDATING FINAN47
CONDENSED CONSOLIDATING FINANCIAL STATEMENTS (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
CONDENSED CONSOLIDATING FINANCIAL STATEMENTS | |
Condensed Consolidating Statement of Operation | Three Months Ended June 30, 2016 (Issuer) (Guarantor) (Non-Guarantor) Newmont Newmont Mining Mining Newmont Other Corporation Condensed Consolidating Statement of Operation Corporation USA Subsidiaries Eliminations Consolidated Sales $ — $ $ $ — $ Costs and expenses Costs applicable to sales (1) — — Depreciation and amortization — Reclamation and remediation — — Exploration — — Advanced projects, research and development — — General and administrative — — Other expense, net — — — Other income (expense) Other income, net — — Interest income - intercompany — — Interest expense - intercompany — — Interest expense, net — — — Income (loss) before income and mining tax and other items — Income and mining tax benefit (expense) — Equity income (loss) of affiliates Income (loss) from continuing operations Income (loss) from discontinued operations — — — Net income (loss) Net loss (income) attributable to noncontrolling interests — — — Net income (loss) attributable to Newmont stockholders $ $ $ $ $ Comprehensive income (loss) $ $ $ $ $ Comprehensive loss (income) attributable to noncontrolling interests — — — Comprehensive income (loss) attributable to Newmont stockholders $ $ $ $ $ (1) Excludes Depreciation and amortization and Reclamation and remediation . Three Months Ended June 30, 2015 (Issuer) (Guarantor) (Non-Guarantor) Newmont Newmont Mining Mining Newmont Other Corporation Condensed Consolidating Statement of Operation Corporation USA Subsidiaries Eliminations Consolidated Sales $ — $ $ $ — $ Costs and expenses Costs applicable to sales (1) — — Depreciation and amortization — Reclamation and remediation — — Exploration — — Advanced projects, research and development — — General and administrative — — Other expense, net — — — Other income (expense) Other income, net — — Interest income - intercompany — Interest expense - intercompany — — Interest expense, net — — Income (loss) before income and mining tax and other items — Income and mining tax benefit (expense) — Equity income (loss) of affiliates Income (loss) from continuing operations Income (loss) from discontinued operations — — — Net income (loss) Net loss (income) attributable to noncontrolling interests — — Net income (loss) attributable to Newmont stockholders $ $ $ $ $ Comprehensive income (loss) $ $ $ $ $ Comprehensive loss (income) attributable to noncontrolling interests — — Comprehensive income (loss) attributable to Newmont stockholders $ $ $ $ $ (1) Excludes Depreciation and amortization and Reclamation and remediation . Six Months Ended June 30, 2016 (Issuer) (Guarantor) (Non-Guarantor) Newmont Newmont Mining Mining Newmont Other Corporation Condensed Consolidating Statement of Operation Corporation USA Subsidiaries Eliminations Consolidated Sales $ — $ $ $ — $ Costs and expenses Costs applicable to sales (1) — — Depreciation and amortization — Reclamation and remediation — — Exploration — — Advanced projects, research and development — — General and administrative — — Other expense, net — — — Other income (expense) Other income, net — — Interest income - intercompany — — Interest expense - intercompany — — Interest expense, net — — Income (loss) before income and mining tax and other items — Income and mining tax benefit (expense) — Equity income (loss) of affiliates Income (loss) from continuing operations Income (loss) from discontinued operations — — — Net income (loss) Net loss (income) attributable to noncontrolling interests — — — Net income (loss) attributable to Newmont stockholders $ $ $ $ $ Comprehensive income (loss) $ $ $ $ $ Comprehensive loss (income) attributable to noncontrolling interests — — — Comprehensive income (loss) attributable to Newmont stockholders $ $ $ $ $ (1) Excludes Depreciation and amortization and Reclamation and remediation . Six Months Ended June 30, 2015 (Issuer) (Guarantor) (Non-Guarantor) Newmont Newmont Mining Mining Newmont Other Corporation Condensed Consolidating Statement of Operation Corporation USA Subsidiaries Eliminations Consolidated Sales $ — $ $ $ — $ Costs and expenses Costs applicable to sales (1) — — Depreciation and amortization — Reclamation and remediation — — Exploration — — Advanced projects, research and development — — General and administrative — — Other expense, net — — — Other income (expense) Other income, net — Interest income - intercompany — Interest expense - intercompany — — Interest expense, net — — Income (loss) before income and mining tax and other items — Income and mining tax benefit (expense) — Equity income (loss) of affiliates Income (loss) from continuing operations Income (loss) from discontinued operations — — — Net income (loss) Net loss (income) attributable to noncontrolling interests — — Net income (loss) attributable to Newmont stockholders $ $ $ $ $ Comprehensive income (loss) $ $ $ $ $ Comprehensive loss (income) attributable to noncontrolling interests — — Comprehensive income (loss) attributable to Newmont stockholders $ $ $ $ $ (1) Excludes Depreciation and amortization and Reclamation and remediation . |
Condensed Consolidating Statement of Cash Flows | Six Months Ended June 30, 2016 (Issuer) (Guarantor) (Non-Guarantor) Newmont Newmont Mining Mining Newmont Other Corporation Condensed Consolidating Statement of Cash Flows Corporation USA Subsidiaries Eliminations Consolidated Operating activities: Net cash provided by operating activities $ $ $ $ $ Investing activities: Additions to property, plant and mine development — — Sales of investments — — — Sales of other assets — — — Other — — — Net cash used in investing activities — — Financing activities: Repayment of debt — Net intercompany borrowings (repayments) — — Funding from noncontrolling interests — — — Dividends paid to noncontrolling interests — — — Dividends paid to common stockholders — (Increase) decrease in restricted cash — — — Other — — — Net cash (used in) provided by financing activities Effect of exchange rate changes on cash — — — Net change in cash and cash equivalents — — Cash and cash equivalents at beginning of period — — Cash and cash equivalents at end of period $ — $ $ $ — $ Six Months Ended June 30, 2015 (Issuer) (Guarantor) (Non-Guarantor) Newmont Newmont Mining Mining Newmont Other Corporation Condensed Consolidating Statement of Cash Flows Corporation USA Subsidiaries Eliminations Consolidated Operating activities: Net cash provided by operating activities $ $ $ $ — $ Investing activities: Additions to property, plant and mine development — — Sales of investments — — Sales of other assets — — Other — — — Net cash used in investing activities — — Financing activities: Repayment of debt — Net intercompany borrowings (repayments) — — Proceeds from stock issuance, net — — — Sale of noncontrolling interests — — Funding from noncontrolling interests — — — Dividends paid to noncontrolling interests — — — Dividends paid to common stockholders — — — (Increase) decrease in restricted cash — — — Other — Net cash (used in) provided by financing activities — Effect of exchange rate changes on cash — — — Net change in cash and cash equivalents — — Cash and cash equivalents at beginning of period — — Cash and cash equivalents at end of period $ — $ $ $ — $ |
Condensed Consolidating Balance Sheet | At June 30, 2016 (Issuer) (Guarantor) (Non-Guarantor) Newmont Newmont Mining Mining Newmont Other Corporation Condensed Consolidating Balance Sheet Corporation USA Subsidiaries Eliminations Consolidated Assets: Cash and cash equivalents $ — $ $ $ — $ Trade receivables — — Other accounts receivables — — Intercompany receivable — Investments — — — Inventories — — Stockpiles and ore on leach pads — — Other current assets — — Current assets Property, plant and mine development, net Investments — — Investments in subsidiaries — — Stockpiles and ore on leach pads — — Deferred income tax assets Non-current intercompany receivable — Other non-current assets — — Total assets $ $ $ $ $ Liabilities: Debt $ — $ $ $ — $ Accounts payable — — Intercompany payable — Employee-related benefits — — Income and mining taxes — — Other current liabilities — Current liabilities Debt — Reclamation and remediation liabilities — — Deferred income tax liabilities — Employee-related benefits — Non-current intercompany payable — — Other non-current liabilities — — Total liabilities Equity: Newmont stockholders’ equity Noncontrolling interests — — — Total equity Total liabilities and equity $ $ $ $ $ At December 31, 2015 (Issuer) (Guarantor) (Non-Guarantor) Newmont Newmont Mining Mining Newmont Other Corporation Condensed Consolidating Balance Sheet Corporation USA Subsidiaries Eliminations Consolidated Assets: Cash and cash equivalents $ — $ $ $ — $ Trade receivables — — Other accounts receivables — — — Intercompany receivable — Investments — — — Inventories — — Stockpiles and ore on leach pads — — Other current assets — — Current assets Property, plant and mine development, net Investments — — Investments in subsidiaries — Stockpiles and ore on leach pads — — Deferred income tax assets Non-current intercompany receivable — Other non-current assets — — Total assets $ $ $ $ $ Liabilities: Debt $ — $ $ $ — $ Accounts payable — — Intercompany payable — Employee-related benefits — — Income and mining taxes — — — Other current liabilities — Current liabilities Debt — Reclamation and remediation liabilities — — Deferred income tax liabilities — Employee-related benefits — — Non-current intercompany payable — — Other non-current liabilities — — Total liabilities Equity: Newmont stockholders’ equity Noncontrolling interests — — Total equity Total liabilities and equity $ $ $ $ $ |
BASIS OF PRESENTATION - Definit
BASIS OF PRESENTATION - Definitive Agreement (Details) | Jun. 30, 2016USD ($)$ / lb | Jun. 30, 2016USD ($) |
Asia Pacific | Batu Hijau | ||
Agreement terms and other information | ||
Impairment of long-lived assets | $ 0 | |
Asia Pacific | Batu Hijau | Batu Hijau copper and gold mine | ||
Agreement terms and other information | ||
Percentage of total assets attributable to segment | 15.00% | |
Batu Hijau share sale and purchase agreement | Batu Hijau copper and gold mine | ||
Agreement terms and other information | ||
Significant interruption of mining or million operations, duration | 3 months | |
Regulatory adverse event, product export, minimum period of time | 3 months | |
Batu Hijau share sale and purchase agreement | Metal Price Upside contingent payment | ||
Agreement terms and other information | ||
Minimum quarterly average copper price per pound threshold (dollars per pound) | $ / lb | 3.75 | |
Contingent consideration, percentage of the product of the difference used in calculation | 30.00% | |
Pounds of copper shipped, percentage threshold for contingent consideration | 96.50% | |
Batu Hijau share sale and purchase agreement | Contingent Payment, Phase 7 Production | ||
Agreement terms and other information | ||
Contingent consideration, partial payment due, Phase 7 and Copper Price thresholds are met | $ 76,000,000 | |
Minimum annual average copper price per pound threshold (dollars per pound) | $ / lb | 2.75 | |
Batu Hijau share sale and purchase agreement | Contingent Payment, Concentrate Shipment Requirement | ||
Agreement terms and other information | ||
Minimum annual average copper price per pound threshold (dollars per pound) | $ / lb | 3.25 | |
Contingent Consideration, payment due after both the second anniversary of the first shipment of concentrate is produced and in which the LME annual average copper price exceeds threshold | $ 76,000,000 | |
Batu Hijau share sale and purchase agreement | Nusa Tenggara Partnership B.V. | ||
Agreement terms and other information | ||
Ownership interest in partnership (as a percent) | 56.25% | |
Batu Hijau share sale and purchase agreement | Nusa Tenggara Partnership B.V. | Nusa Tenggara Mining Corporation | ||
Agreement terms and other information | ||
Ownership interest in partnership (as a percent) | 43.75% | |
Batu Hijau share sale and purchase agreement | PTNNT | ||
Agreement terms and other information | ||
Ownership interest held before transaction (as a percent) | 48.50% | |
Ownership interest held after transaction (as a percent) | 0.00% | |
Cash consideration | $ 920,000,000 | $ 920,000,000 |
Expected loss on sale | $ 500,000,000 | |
Batu Hijau share sale and purchase agreement | PTNNT | Nusa Tenggara Partnership B.V. | ||
Agreement terms and other information | ||
Ownership interest held (as a percent) | 56.00% | 56.00% |
Batu Hijau share sale and purchase agreement | PTNNT | PTPI | ||
Agreement terms and other information | ||
Ownership interest provided as security for loan, percentage | 17.80% | |
Batu Hijau share sale and purchase agreement | PTNNT | PTIMI | ||
Agreement terms and other information | ||
Ownership interest held (as a percent) | 2.20% | 2.20% |
Batu Hijau share sale and purchase agreement | PTNNT | PTMDB | ||
Agreement terms and other information | ||
Ownership interest held (as a percent) | 24.00% | 24.00% |
Batu Hijau share sale and purchase agreement | PTNNT | Maximum | ||
Agreement terms and other information | ||
Contingent consideration | $ 403,000,000 | $ 403,000,000 |
Batu Hijau share sale and purchase agreement | PTNNT | Metal Price Upside contingent payment | Maximum | ||
Agreement terms and other information | ||
Contingent consideration | 133,000,000 | 133,000,000 |
Batu Hijau share sale and purchase agreement | PTNNT | Elang Development deferred payment | ||
Agreement terms and other information | ||
Contingent consideration | 118,000,000 | 118,000,000 |
Batu Hijau share sale and purchase agreement | PTNNT | Contingent Payment | Maximum | ||
Agreement terms and other information | ||
Contingent consideration | $ 152,000,000 | $ 152,000,000 |
BASIS OF PRESENTATION - Reclass
BASIS OF PRESENTATION - Reclassifications (Details) - Reclassified adjustment - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended |
Jun. 30, 2015 | Jun. 30, 2015 | |
Other expense, net | ||
Regional administration costs | $ (17) | $ (31) |
Community development costs | (8) | (16) |
General and administrative | ||
Regional administration costs | 17 | 31 |
Costs applicable to sales | ||
Community development costs | $ 8 | $ 16 |
SUMMARY OF SIGNIFICANT ACCOUN50
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Risks and Uncertainties (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Sep. 30, 2014 | Dec. 31, 2015 |
Risks and Uncertainties | |||
Total Assets | $ 24,703 | $ 25,136 | |
Batu Hijau | Copper concentrate export permit | |||
Risks and Uncertainties | |||
Contract term | 6 months | ||
Total Assets | $ 3,746 | $ 3,483 | |
Batu Hijau share sale and purchase agreement | PTNNT | |||
Risks and Uncertainties | |||
Ownership interest held before transaction (as a percent) | 48.50% |
SUMMARY OF SIGNIFICANT ACCOUN51
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Recently Issued Accounting Pronouncements (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Recently Adopted Accounting Pronouncements | ||
Other non-current assets | $ 718 | $ 730 |
Debt (non-current) | $ 5,375 | 6,041 |
ASU No. 2015-03 - Debt issuance costs | ||
Recently Adopted Accounting Pronouncements | ||
Other non-current assets | 730 | |
Debt (non-current) | 6,041 | |
ASU No. 2015-03 - Debt issuance costs | Reclassified | ||
Recently Adopted Accounting Pronouncements | ||
Other non-current assets | (46) | |
Debt (non-current) | (46) | |
ASU No. 2015-03 - Debt issuance costs | As Reported | ||
Recently Adopted Accounting Pronouncements | ||
Other non-current assets | 776 | |
Debt (non-current) | $ 6,087 |
BUSINESS ACQUISITION - Consider
BUSINESS ACQUISITION - Consideration (Details) - USD ($) $ in Millions | Aug. 03, 2015 | Jun. 30, 2016 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | Jun. 08, 2015 |
Acquisition price | ||||||
Net proceeds from common stock issuance | $ 675 | $ 675 | ||||
Cripple Creek & Victor mine | ||||||
Acquisition price | ||||||
Ownership interest acquired | 100.00% | |||||
Acquisition price | $ 821 | |||||
Adjustments to the purchase price allocation | $ 0 | |||||
Smelter Return Royalty | Cripple Creek & Victor mine | ||||||
Acquisition price | ||||||
Net smelter return royalty (as a percent) | 2.50% | |||||
Fair value of net smelter return royalty | $ 0 | |||||
Other expense, net | Cripple Creek & Victor mine | ||||||
Acquisition price | ||||||
Acquisition costs | $ 3 | $ 3 |
SEGMENT INFORMATION - Financial
SEGMENT INFORMATION - Financial Information Table (Details) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) | Jun. 30, 2016USD ($)segment | Jun. 30, 2015USD ($) | ||
Segment Information | |||||
Sales | $ 2,038 | $ 1,908 | $ 4,070 | $ 3,880 | |
Costs applicable to sales | [1] | 1,059 | 1,027 | 2,140 | 2,054 |
Depreciation and amortization | 314 | 276 | 636 | 565 | |
Advanced Projects, Research and Development, and Exploration | 82 | 81 | 140 | 142 | |
Income (Loss) before Income and Mining Tax and Other Items | 404 | 298 | 894 | 721 | |
Capital Expenditures | 285 | 329 | 558 | 617 | |
Additional disclosures | |||||
Increase (decrease) in accrued capital expenditures | (9) | 7 | (33) | 11 | |
Consolidated capital expenditures on a cash basis | 294 | 322 | $ 591 | 606 | |
Operating Segments | |||||
Segment Information | |||||
Number of operating segments | segment | 4 | ||||
Corporate and other | |||||
Segment Information | |||||
Depreciation and amortization | 2 | 3 | $ 5 | 7 | |
Advanced Projects, Research and Development, and Exploration | 13 | 24 | 25 | 45 | |
Income (Loss) before Income and Mining Tax and Other Items | (139) | (182) | (175) | (343) | |
Capital Expenditures | 2 | 24 | 4 | 30 | |
North America | Operating Segments | |||||
Segment Information | |||||
Sales | 628 | 467 | 1,183 | 987 | |
Costs applicable to sales | 361 | 301 | 714 | 604 | |
Depreciation and amortization | 103 | 69 | 203 | 143 | |
Advanced Projects, Research and Development, and Exploration | 20 | 15 | 35 | 26 | |
Income (Loss) before Income and Mining Tax and Other Items | 137 | 74 | 212 | 202 | |
Capital Expenditures | 114 | 98 | 217 | 187 | |
North America | Operating Segments | Carlin | |||||
Segment Information | |||||
Sales | 256 | 243 | 502 | 519 | |
Costs applicable to sales | 184 | 187 | 373 | 365 | |
Depreciation and amortization | 43 | 46 | 92 | 91 | |
Advanced Projects, Research and Development, and Exploration | 4 | 4 | 7 | 7 | |
Income (Loss) before Income and Mining Tax and Other Items | 22 | 3 | 24 | 50 | |
Capital Expenditures | 43 | 58 | 79 | 115 | |
North America | Operating Segments | Phoenix | |||||
Segment Information | |||||
Sales | 84 | 74 | 169 | 169 | |
Costs applicable to sales | 61 | 49 | 132 | 115 | |
Depreciation and amortization | 19 | 11 | 39 | 27 | |
Advanced Projects, Research and Development, and Exploration | 1 | 1 | 1 | 2 | |
Income (Loss) before Income and Mining Tax and Other Items | 3 | 9 | (8) | 17 | |
Capital Expenditures | 3 | 8 | 7 | 15 | |
North America | Operating Segments | Phoenix | Gold | |||||
Segment Information | |||||
Sales | 62 | 50 | 126 | 111 | |
Costs applicable to sales | 39 | 32 | 88 | 73 | |
Depreciation and amortization | 12 | 8 | 27 | 18 | |
North America | Operating Segments | Phoenix | Copper | |||||
Segment Information | |||||
Sales | 22 | 24 | 43 | 58 | |
Costs applicable to sales | 22 | 17 | 44 | 42 | |
Depreciation and amortization | 7 | 3 | 12 | 9 | |
North America | Operating Segments | Twin Creeks | |||||
Segment Information | |||||
Sales | 144 | 150 | 303 | 299 | |
Costs applicable to sales | 58 | 65 | 118 | 124 | |
Depreciation and amortization | 13 | 12 | 26 | 25 | |
Advanced Projects, Research and Development, and Exploration | 2 | 3 | 4 | 5 | |
Income (Loss) before Income and Mining Tax and Other Items | 70 | 68 | 153 | 142 | |
Capital Expenditures | 14 | 12 | 20 | 31 | |
North America | Operating Segments | Cripple Creek & Victor mine | |||||
Segment Information | |||||
Sales | 144 | 209 | |||
Costs applicable to sales | 58 | 91 | |||
Depreciation and amortization | 28 | 46 | |||
Advanced Projects, Research and Development, and Exploration | 1 | 4 | |||
Income (Loss) before Income and Mining Tax and Other Items | 55 | 65 | |||
Capital Expenditures | 15 | 36 | |||
North America | Operating Segments | Long Canyon | |||||
Segment Information | |||||
Advanced Projects, Research and Development, and Exploration | 7 | 3 | 13 | 6 | |
Income (Loss) before Income and Mining Tax and Other Items | (7) | (3) | (13) | (6) | |
Capital Expenditures | 37 | 19 | 73 | 24 | |
North America | Operating Segments | Other North America | |||||
Segment Information | |||||
Advanced Projects, Research and Development, and Exploration | 5 | 4 | 6 | 6 | |
Income (Loss) before Income and Mining Tax and Other Items | (6) | (3) | (9) | (1) | |
Capital Expenditures | 2 | 1 | 2 | 2 | |
South America | Operating Segments | |||||
Segment Information | |||||
Sales | 194 | 242 | 405 | 543 | |
Costs applicable to sales | 120 | 130 | 248 | 245 | |
Depreciation and amortization | 63 | 68 | 136 | 142 | |
Advanced Projects, Research and Development, and Exploration | 32 | 23 | 50 | 40 | |
Income (Loss) before Income and Mining Tax and Other Items | (43) | (69) | 79 | ||
Capital Expenditures | 84 | 97 | 180 | 198 | |
South America | Operating Segments | Yanacocha | |||||
Segment Information | |||||
Sales | 194 | 242 | 405 | 543 | |
Costs applicable to sales | 120 | 130 | 248 | 245 | |
Depreciation and amortization | 59 | 66 | 128 | 137 | |
Advanced Projects, Research and Development, and Exploration | 11 | 8 | 20 | 13 | |
Income (Loss) before Income and Mining Tax and Other Items | (19) | 20 | (30) | 114 | |
Capital Expenditures | 24 | 19 | 38 | 34 | |
South America | Operating Segments | Merian | |||||
Segment Information | |||||
Depreciation and amortization | 1 | ||||
Advanced Projects, Research and Development, and Exploration | 11 | 3 | 14 | 5 | |
Income (Loss) before Income and Mining Tax and Other Items | (10) | (4) | (14) | (6) | |
Capital Expenditures | 60 | 78 | 142 | 164 | |
South America | Operating Segments | Other South America | |||||
Segment Information | |||||
Depreciation and amortization | 4 | 2 | 7 | 5 | |
Advanced Projects, Research and Development, and Exploration | 10 | 12 | 16 | 22 | |
Income (Loss) before Income and Mining Tax and Other Items | (14) | (16) | (25) | (29) | |
Asia Pacific | Operating Segments | |||||
Segment Information | |||||
Sales | 955 | 967 | 1,985 | 1,857 | |
Costs applicable to sales | 462 | 502 | 950 | 1,009 | |
Depreciation and amortization | 97 | 99 | 199 | 199 | |
Advanced Projects, Research and Development, and Exploration | 7 | 9 | 13 | 14 | |
Income (Loss) before Income and Mining Tax and Other Items | 366 | 321 | 778 | 586 | |
Capital Expenditures | 60 | 78 | 108 | 138 | |
Asia Pacific | Operating Segments | Boddington | |||||
Segment Information | |||||
Sales | 285 | 243 | 519 | 529 | |
Costs applicable to sales | 174 | 151 | 308 | 347 | |
Depreciation and amortization | 35 | 29 | 63 | 66 | |
Advanced Projects, Research and Development, and Exploration | 1 | ||||
Income (Loss) before Income and Mining Tax and Other Items | 75 | 51 | 139 | 109 | |
Capital Expenditures | 12 | 18 | 23 | 29 | |
Asia Pacific | Operating Segments | Boddington | Gold | |||||
Segment Information | |||||
Sales | 250 | 202 | 454 | 441 | |
Costs applicable to sales | 141 | 122 | 252 | 279 | |
Depreciation and amortization | 29 | 24 | 52 | 54 | |
Asia Pacific | Operating Segments | Boddington | Copper | |||||
Segment Information | |||||
Sales | 35 | 41 | 65 | 88 | |
Costs applicable to sales | 33 | 29 | 56 | 68 | |
Depreciation and amortization | 6 | 5 | 11 | 12 | |
Asia Pacific | Operating Segments | Tanami | |||||
Segment Information | |||||
Sales | 179 | 138 | 299 | 258 | |
Costs applicable to sales | 64 | 59 | 123 | 117 | |
Depreciation and amortization | 23 | 22 | 42 | 41 | |
Advanced Projects, Research and Development, and Exploration | 3 | 2 | 6 | 3 | |
Income (Loss) before Income and Mining Tax and Other Items | 89 | 53 | 127 | 98 | |
Capital Expenditures | 33 | 30 | 57 | 46 | |
Asia Pacific | Operating Segments | Waihi | |||||
Segment Information | |||||
Sales | 39 | 89 | |||
Costs applicable to sales | 18 | 37 | |||
Depreciation and amortization | 3 | 8 | |||
Advanced Projects, Research and Development, and Exploration | 1 | 2 | |||
Income (Loss) before Income and Mining Tax and Other Items | 14 | 39 | |||
Capital Expenditures | 4 | 10 | |||
Asia Pacific | Operating Segments | Kalgoorlie | |||||
Segment Information | |||||
Sales | 122 | 100 | 228 | 174 | |
Costs applicable to sales | 67 | 78 | 132 | 138 | |
Depreciation and amortization | 4 | 6 | 9 | 11 | |
Advanced Projects, Research and Development, and Exploration | 2 | 1 | 3 | 1 | |
Income (Loss) before Income and Mining Tax and Other Items | 49 | 13 | 82 | 24 | |
Capital Expenditures | 5 | 4 | 8 | 11 | |
Asia Pacific | Operating Segments | Batu Hijau | |||||
Segment Information | |||||
Sales | 369 | 447 | 939 | 807 | |
Costs applicable to sales | 157 | 196 | 387 | 370 | |
Depreciation and amortization | 33 | 35 | 79 | 65 | |
Advanced Projects, Research and Development, and Exploration | 4 | 1 | 5 | ||
Income (Loss) before Income and Mining Tax and Other Items | 163 | 202 | 445 | 337 | |
Capital Expenditures | 10 | 20 | 20 | 40 | |
Asia Pacific | Operating Segments | Batu Hijau | Gold | |||||
Segment Information | |||||
Sales | 191 | 178 | 474 | 292 | |
Costs applicable to sales | 65 | 73 | 165 | 124 | |
Depreciation and amortization | 14 | 14 | 34 | 23 | |
Asia Pacific | Operating Segments | Batu Hijau | Copper | |||||
Segment Information | |||||
Sales | 178 | 269 | 465 | 515 | |
Costs applicable to sales | 92 | 123 | 222 | 246 | |
Depreciation and amortization | 19 | 21 | 45 | 42 | |
Asia Pacific | Operating Segments | Other Asia Pacific | |||||
Segment Information | |||||
Depreciation and amortization | 2 | 4 | 6 | 8 | |
Advanced Projects, Research and Development, and Exploration | 2 | 1 | 3 | 2 | |
Income (Loss) before Income and Mining Tax and Other Items | (10) | (12) | (15) | (21) | |
Capital Expenditures | 2 | 2 | |||
Africa | Operating Segments | |||||
Segment Information | |||||
Sales | 261 | 232 | 497 | 493 | |
Costs applicable to sales | 116 | 94 | 228 | 196 | |
Depreciation and amortization | 49 | 37 | 93 | 74 | |
Advanced Projects, Research and Development, and Exploration | 10 | 10 | 17 | 17 | |
Income (Loss) before Income and Mining Tax and Other Items | 83 | 85 | 148 | 197 | |
Capital Expenditures | 25 | 32 | 49 | 64 | |
Africa | Operating Segments | Ahafo | |||||
Segment Information | |||||
Sales | 115 | 87 | 216 | 208 | |
Costs applicable to sales | 60 | 43 | 117 | 99 | |
Depreciation and amortization | 17 | 13 | 32 | 28 | |
Advanced Projects, Research and Development, and Exploration | 7 | 5 | 12 | 11 | |
Income (Loss) before Income and Mining Tax and Other Items | 30 | 22 | 50 | 66 | |
Capital Expenditures | 22 | 24 | 39 | 45 | |
Africa | Operating Segments | Akyem | |||||
Segment Information | |||||
Sales | 146 | 145 | 281 | 285 | |
Costs applicable to sales | 56 | 51 | 111 | 97 | |
Depreciation and amortization | 32 | 24 | 61 | 46 | |
Advanced Projects, Research and Development, and Exploration | 3 | 4 | 4 | 4 | |
Income (Loss) before Income and Mining Tax and Other Items | 55 | 63 | 102 | 134 | |
Capital Expenditures | 3 | 8 | 10 | 19 | |
Africa | Operating Segments | Other Africa | |||||
Segment Information | |||||
Advanced Projects, Research and Development, and Exploration | $ 1 | 1 | 2 | ||
Income (Loss) before Income and Mining Tax and Other Items | $ (2) | $ (4) | $ (3) | ||
[1] | Excludes Depreciation and amortization and Reclamation and remediation. |
RECLAMATION AND REMEDIATION - E
RECLAMATION AND REMEDIATION - Expense (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
RECLAMATION AND REMEDIATION | ||||
Reclamation Accretion | $ 23 | $ 21 | $ 46 | $ 42 |
Remediation | 1 | 4 | 2 | 5 |
Remediation Accretion | 1 | 1 | 2 | 2 |
Total remediation expense | 2 | 5 | 4 | 7 |
Reclamation and remediation expense | $ 25 | $ 26 | $ 50 | $ 49 |
RECLAMATION AND REMEDIATION - R
RECLAMATION AND REMEDIATION - Reconciliation of Obligations (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Change in reclamation liability | ||||
Balance at beginning of period | $ 1,553 | $ 1,497 | ||
Additions, changes in estimates and other | 2 | 21 | ||
Payments and other | (8) | (13) | ||
Accretion expense | $ 23 | $ 21 | 46 | 42 |
Balance at end of period | 1,593 | 1,547 | 1,593 | 1,547 |
Change in remediation liability | ||||
Balance at beginning of period | 318 | 192 | ||
Additions, changes in estimates and other | 1 | 1 | ||
Payments and other | (10) | (25) | ||
Accretion Expense | 1 | 1 | 2 | 2 |
Balance at end of period | $ 311 | $ 170 | $ 311 | $ 170 |
RECLAMATION AND REMEDIATION - A
RECLAMATION AND REMEDIATION - Additional Information (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 | Jun. 30, 2015 | Dec. 31, 2014 |
Reclamation and remediation liability | ||||
Asset retirement obligation | $ 1,593 | $ 1,553 | $ 1,547 | $ 1,497 |
Environmental remediation obligations | 311 | 318 | $ 170 | $ 192 |
Other current assets | Batu Hijau | ||||
Reclamation and remediation liability | ||||
Asset retirement obligation restricted assets | 17 | 15 | ||
Other current liabilities | ||||
Reclamation and remediation liability | ||||
Reclamation obligation, current | 35 | 37 | ||
Remediation obligation, current | 34 | 34 | ||
Other noncurrent assets | ||||
Reclamation and remediation liability | ||||
Asset retirement obligation restricted assets | 77 | 65 | ||
Other noncurrent assets | Batu Hijau | ||||
Reclamation and remediation liability | ||||
Asset retirement obligation restricted assets | 12 | |||
Other noncurrent assets | Midnite Mine | ||||
Reclamation and remediation liability | ||||
Asset retirement obligation restricted assets | 43 | 43 | ||
Other noncurrent assets | Ahafo and Akyem Mines | ||||
Reclamation and remediation liability | ||||
Asset retirement obligation restricted assets | 13 | 13 | ||
Other noncurrent assets | Con Mine | ||||
Reclamation and remediation liability | ||||
Asset retirement obligation restricted assets | 9 | 9 | ||
Investments, Noncurrent | San Jose Reservoir and various Nevada locations | Marketable equity securities | ||||
Reclamation and remediation liability | ||||
Asset retirement obligation restricted assets | $ 21 | $ 20 |
INCOME AND MINING TAXES - Tax E
INCOME AND MINING TAXES - Tax Expense Reconciliation (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Reconciling item, percentage | ||||
Tax at statutory rate | 35.00% | 35.00% | 35.00% | 35.00% |
Percentage depletion | 2.00% | (6.00%) | (4.00%) | (5.00%) |
Change in valuation allowance on deferred tax assets | 36.00% | 13.00% | 38.00% | 12.00% |
Mining and other taxes | 1.00% | 5.00% | 3.00% | 3.00% |
Tax impact on sale of assets | (4.00%) | |||
Effect of foreign earnings, net of credits | 1.00% | 2.00% | 2.00% | 1.00% |
Other | 1.00% | 2.00% | 1.00% | 2.00% |
Income and mining tax expense (benefit) | 76.00% | 51.00% | 71.00% | 48.00% |
Reconciling item, amount | ||||
Income (loss) before income and mining tax and other items | $ 404 | $ 298 | $ 894 | $ 721 |
Tax at statutory rate | 141 | 104 | 313 | 252 |
Percentage depletion | 7 | (19) | (36) | (34) |
Change in valuation allowance on deferred tax assets | 146 | 40 | 340 | 84 |
Mining and other taxes | 6 | 16 | 29 | 24 |
Tax impact on sale of assets | (35) | |||
Effect of foreign earnings, net of credits | 6 | 5 | 17 | 8 |
Other | 4 | 6 | 6 | 11 |
Income and mining tax expense | $ 310 | $ 152 | $ 634 | $ 345 |
INCOME AND MINING TAXES - Unrec
INCOME AND MINING TAXES - Unrecognized Tax Benefits (Details) $ in Millions | 3 Months Ended |
Jun. 30, 2016USD ($)subsidiary | |
Unrecognized Tax Benefits, other information | |
Total unrecognized tax liability | $ 107 |
Unrecognized tax benefits affecting effective tax rate | $ 77 |
Canadian Revenue Authority | |
Unrecognized Tax Benefits, other information | |
Number of subsidiaries subject to tax and interest assessment | subsidiary | 1 |
Tax and interest assessment | $ 54 |
Minimum percentage of assessment required to be paid | 50.00% |
Minimum | |
Unrecognized Tax Benefits, other information | |
Significant decrease in unrecognized tax benefits is reasonably possible, estimated range of change | $ 50 |
Maximum | |
Unrecognized Tax Benefits, other information | |
Significant decrease in unrecognized tax benefits is reasonably possible, estimated range of change | $ 55 |
NET INCOME (LOSS) ATTRIBUTABL59
NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS - Net Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS | ||||
Net income (loss) attributable to noncontrolling interests | $ 39 | $ 76 | $ 122 | $ 122 |
Minera Yanacocha S.R.L. | ||||
NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS | ||||
Net income (loss) attributable to noncontrolling interests | (13) | 18 | (24) | 23 |
PTNNT | ||||
NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS | ||||
Net income (loss) attributable to noncontrolling interests | 55 | 66 | 150 | 111 |
TMAC | ||||
NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS | ||||
Net income (loss) attributable to noncontrolling interests | (7) | (13) | ||
Merian | ||||
NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS | ||||
Net income (loss) attributable to noncontrolling interests | $ (3) | $ (4) | ||
Other | ||||
NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS | ||||
Net income (loss) attributable to noncontrolling interests | $ (1) | $ 1 |
NET INCOME (LOSS) ATTRIBUTABL60
NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS - Ownership (Details) | 6 Months Ended |
Jun. 30, 2016 | |
Minera Yanacocha S.R.L. | |
NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS | |
Ownership/Economic interest in subsidiaries | 51.35% |
Minera Yanacocha S.R.L. | Compania de Minas Buenaventura SAA [Member] | |
NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS | |
Noncontrolling interest, ownership percentage by noncontrolling owners | 43.65% |
Minera Yanacocha S.R.L. | International Finance Corporation [Member] | |
NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS | |
Noncontrolling interest, ownership percentage by noncontrolling owners | 5.00% |
PTNNT | Primary Beneficiary | |
NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS | |
Ownership interest held (as a percent) | 48.50% |
TMAC | |
NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS | |
Ownership interest (as a percent) | 29.20% |
Merian | Primary Beneficiary | |
NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS | |
Ownership interest held (as a percent) | 75.00% |
Surgold | Staatsolie | |
NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS | |
Ownership interest (as a percent) | 25.00% |
NET INCOME (LOSS) ATTRIBUTABL61
NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS - Classified Assets and Liabilities of Consolidated VIEs (Details) - Primary Beneficiary - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
PTNNT | ||
NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS | ||
Current assets | $ 1,343 | $ 960 |
Total assets | 3,746 | 3,483 |
Current liabilities | 382 | 292 |
Total liabilities | 1,031 | 1,054 |
PTNNT | Cash and cash equivalents | ||
NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS | ||
Current assets | 720 | 419 |
PTNNT | Trade receivables | ||
NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS | ||
Current assets | 204 | 179 |
PTNNT | Other current assets | ||
NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS | ||
Current assets | 419 | 362 |
PTNNT | Property Plant And Mine Development | ||
NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS | ||
Non-current assets | 1,036 | 1,103 |
PTNNT | Stockpiles and ore on leach pads | ||
NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS | ||
Non-current assets | 1,007 | 1,104 |
PTNNT | Other noncurrent assets | ||
NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS | ||
Non-current assets | 360 | 316 |
PTNNT | Debt, current | ||
NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS | ||
Current liabilities | 188 | 140 |
PTNNT | Accounts payable | ||
NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS | ||
Current liabilities | 43 | 81 |
PTNNT | Other current liabilities | ||
NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS | ||
Current liabilities | 151 | 71 |
PTNNT | Debt, noncurrent | ||
NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS | ||
Non-current liabilities | 2 | 187 |
PTNNT | Reclamation and remediation liabilities | ||
NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS | ||
Non-current liabilities | 254 | 245 |
PTNNT | Other non-current liabilities | ||
NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS | ||
Non-current liabilities | 393 | 330 |
Merian | ||
NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS | ||
Current assets | 73 | 39 |
Total assets | 768 | 603 |
Current liabilities | 46 | 35 |
Total liabilities | 54 | 43 |
Merian | Cash and cash equivalents | ||
NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS | ||
Current assets | 29 | 16 |
Merian | Other current assets | ||
NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS | ||
Current assets | 44 | 23 |
Merian | Property Plant And Mine Development | ||
NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS | ||
Non-current assets | 695 | 564 |
Merian | Other current liabilities | ||
NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS | ||
Current liabilities | 46 | 35 |
Merian | Reclamation and remediation liabilities | ||
NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS | ||
Non-current liabilities | $ 8 | $ 8 |
INCOME (LOSS) PER COMMON SHARE
INCOME (LOSS) PER COMMON SHARE - Basic and Diluted (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Net income (loss) attributable to Newmont stockholders: | ||||
Continuing operations | $ 50 | $ 63 | $ 128 | $ 238 |
Discontinued operations | (27) | 9 | (53) | 17 |
Net income (loss) attributable to Newmont stockholders | $ 23 | $ 72 | $ 75 | $ 255 |
Weighted average common shares (millions): | ||||
Basic | 531 | 505 | 530 | 502 |
Effect of employee stock-based awards | 2 | 1 | 2 | 1 |
Diluted | 533 | 506 | 532 | 503 |
Basic: | ||||
Continuing operations | $ 0.09 | $ 0.13 | $ 0.24 | $ 0.48 |
Discontinued operations | (0.05) | 0.01 | (0.10) | 0.03 |
Net income (loss) per common share, basic | 0.04 | 0.14 | 0.14 | 0.51 |
Diluted: | ||||
Continuing operations | 0.09 | 0.13 | 0.24 | 0.48 |
Discontinued operations | (0.05) | 0.01 | (0.10) | 0.03 |
Net income (loss) per common share, diluted | $ 0.04 | $ 0.14 | $ 0.14 | $ 0.51 |
INCOME (LOSS) PER COMMON SHAR63
INCOME (LOSS) PER COMMON SHARE - Anti-dilutive Shares (Details) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Computation of diluted weighted average common shares | ||||
Convertible debt, number of additional shares included in diluted weighted-average shares | 0 | 0 | 0 | 0 |
Options | ||||
Antidilutive securities | ||||
Anti-dilutive shares | 2,000,000 | 2,000,000 | ||
Options to purchase common shares average exercise price (in dollars per share) | $ 51 | $ 48 | $ 51 | $ 48 |
EMPLOYEE PENSION AND OTHER BE64
EMPLOYEE PENSION AND OTHER BENEFIT PLANS - Net Periodic Pension and Other Benefit Costs (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Pension Plans | ||||
Pension and other post-retirement costs, net | ||||
Service cost | $ 8 | $ 7 | $ 15 | $ 15 |
Interest cost | 12 | 11 | 24 | 22 |
Expected return on plan assets | (15) | (14) | (29) | (29) |
Amortization, net | 6 | 7 | 12 | 14 |
Total pension cost | 11 | 11 | 22 | 22 |
Other Benefit Plans | ||||
Pension and other post-retirement costs, net | ||||
Service cost | 1 | 1 | 1 | 2 |
Interest cost | 1 | 1 | 2 | 3 |
Amortization, net | $ (2) | $ (3) | ||
Total pension cost | $ 2 | $ 5 |
STOCK-BASED COMPENSATION - Comp
STOCK-BASED COMPENSATION - Compensation Costs (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Stock-based compensation: | ||||
Stock-based compensation | $ 21 | $ 20 | $ 37 | $ 40 |
Performance leveraged stock units | ||||
Stock-based compensation: | ||||
Stock-based compensation | 11 | 11 | 19 | 21 |
Restricted stock units | ||||
Stock-based compensation: | ||||
Stock-based compensation | 9 | 8 | 15 | 16 |
Strategic stock units | ||||
Stock-based compensation: | ||||
Stock-based compensation | $ 1 | $ 1 | $ 3 | $ 3 |
FAIR VALUE ACCOUNTING - Fair Va
FAIR VALUE ACCOUNTING - Fair Value on a Recurring Basis (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Recurring | ||
Assets: | ||
Cash and cash equivalents | $ 2,902 | $ 2,782 |
Restricted assets | 145 | 132 |
Assets | 3,405 | 3,319 |
Liabilities: | ||
Debt | 5,874 | 5,469 |
Liabilities | 6,134 | 5,700 |
Recurring | Boddington Contingent Consideration | ||
Liabilities: | ||
Contingent consideration | 12 | 10 |
Recurring | Holt property royalty | ||
Liabilities: | ||
Royalty | 200 | 129 |
Recurring | Provisional copper and gold concentrate receivables | ||
Assets: | ||
Trade receivable, net | 264 | 178 |
Recurring | Foreign exchange forward contracts | ||
Liabilities: | ||
Derivative instruments, net | 36 | 60 |
Recurring | Diesel forward contracts | ||
Liabilities: | ||
Derivative instruments, net | 12 | 32 |
Recurring | Level 1 | ||
Assets: | ||
Cash and cash equivalents | 2,902 | 2,782 |
Restricted assets | 145 | 132 |
Assets | 3,378 | 3,294 |
Recurring | Level 1 | Provisional copper and gold concentrate receivables | ||
Assets: | ||
Trade receivable, net | 264 | 178 |
Recurring | Level 2 | ||
Liabilities: | ||
Debt | 5,874 | 5,469 |
Liabilities | 5,922 | 5,561 |
Recurring | Level 2 | Foreign exchange forward contracts | ||
Liabilities: | ||
Derivative instruments, net | 36 | 60 |
Recurring | Level 2 | Diesel forward contracts | ||
Liabilities: | ||
Derivative instruments, net | 12 | 32 |
Recurring | Level 3 | ||
Assets: | ||
Assets | 27 | 25 |
Liabilities: | ||
Liabilities | 212 | 139 |
Recurring | Level 3 | Boddington Contingent Consideration | ||
Liabilities: | ||
Contingent consideration | 12 | 10 |
Recurring | Level 3 | Holt property royalty | ||
Liabilities: | ||
Royalty | 200 | 129 |
Recurring | Marketable equity securities | Extractive industries | ||
Assets: | ||
Marketable securities | 51 | 186 |
Recurring | Marketable equity securities | Extractive industries | Level 1 | ||
Assets: | ||
Marketable securities | 51 | 186 |
Recurring | Marketable equity securities | Other industries | ||
Assets: | ||
Marketable securities | 16 | 16 |
Recurring | Marketable equity securities | Other industries | Level 1 | ||
Assets: | ||
Marketable securities | 16 | 16 |
Recurring | Asset backed commercial paper | ||
Assets: | ||
Marketable securities | 20 | 18 |
Recurring | Asset backed commercial paper | Level 3 | ||
Assets: | ||
Marketable securities | 20 | 18 |
Recurring | Auction rate securities | ||
Assets: | ||
Marketable securities | 7 | 7 |
Recurring | Auction rate securities | Level 3 | ||
Assets: | ||
Marketable securities | 7 | 7 |
Carrying value | ||
Liabilities: | ||
Debt | $ 5,550 | $ 6,167 |
FAIR VALUE ACCOUNTING - Quantit
FAIR VALUE ACCOUNTING - Quantitative Information (Details) oz in Thousands, $ in Millions | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2016USD ($)oz$ / oz$ / lb | Dec. 31, 2015USD ($)oz$ / oz$ / lb | Jun. 30, 2015USD ($) | Dec. 31, 2014USD ($) | |
Quantitative and Qualitative Information - Unobservable Inputs | ||||
Financial assets, fair value | $ 27 | $ 25 | $ 29 | $ 30 |
Financial liabilities, fair value | 212 | 139 | 158 | 189 |
Boddington Contingent Consideration | ||||
Quantitative and Qualitative Information - Unobservable Inputs | ||||
Financial liabilities, fair value | 12 | 10 | 10 | 10 |
Boddington Contingent Consideration | Maximum | ||||
Quantitative and Qualitative Information - Unobservable Inputs | ||||
Boddington contingent consideration liability | 100 | |||
Holt property royalty | ||||
Quantitative and Qualitative Information - Unobservable Inputs | ||||
Financial liabilities, fair value | 200 | 129 | 148 | 179 |
Auction rate securities | ||||
Quantitative and Qualitative Information - Unobservable Inputs | ||||
Financial assets, fair value | 7 | 7 | 7 | 6 |
Asset backed commercial paper | ||||
Quantitative and Qualitative Information - Unobservable Inputs | ||||
Financial assets, fair value | 20 | 18 | $ 22 | $ 24 |
Level 3 | Risk-Adjusted Indicative Price | Auction rate securities | ||||
Quantitative and Qualitative Information - Unobservable Inputs | ||||
Financial assets, fair value | $ 7 | $ 7 | ||
Recoverability Rate | 90.00% | 85.00% | ||
Level 3 | Risk-Adjusted Indicative Price | Asset backed commercial paper | ||||
Quantitative and Qualitative Information - Unobservable Inputs | ||||
Financial assets, fair value | $ 20 | $ 18 | ||
Recoverability Rate | 90.00% | 90.00% | ||
Level 3 | Monte Carlo | Boddington Contingent Consideration | ||||
Quantitative and Qualitative Information - Unobservable Inputs | ||||
Contingent consideration paid to date | $ 72 | |||
Financial liabilities, fair value | $ 12 | $ 10 | ||
Discount Rate | 3.07% | 5.32% | ||
Short-term gold price | $ / oz | 1,260 | 1,106 | ||
Long-term gold price | $ / oz | 1,300 | 1,300 | ||
Short-term copper price | $ / lb | 2.14 | 2.22 | ||
Long-term copper price | $ / lb | 3 | 3 | ||
Long-term Australian to U.S. dollar exchange rate | 0.80 | 0.80 | ||
Level 3 | Monte Carlo | Holt property royalty | ||||
Quantitative and Qualitative Information - Unobservable Inputs | ||||
Financial liabilities, fair value | $ 200 | $ 129 | ||
Discount Rate | 3.27% | 5.06% | ||
Short-term gold price | $ / oz | 1,260 | 1,106 | ||
Long-term gold price | $ / oz | 1,300 | 1,300 | ||
Level 3 | Monte Carlo | Holt property royalty | Minimum | ||||
Quantitative and Qualitative Information - Unobservable Inputs | ||||
Gold production scenarios (in 000's of ounces) | oz | 365 | 398 | ||
Level 3 | Monte Carlo | Holt property royalty | Maximum | ||||
Quantitative and Qualitative Information - Unobservable Inputs | ||||
Gold production scenarios (in 000's of ounces) | oz | 1,603 | 1,636 |
FAIR VALUE ACCOUNTING - Changes
FAIR VALUE ACCOUNTING - Changes in the Fair Value of Level 3 Financial Assets and Liabilities (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Summary of changes in Level 3 financial assets | ||
Balance at beginning of period, assets | $ 25 | $ 30 |
Revaluation | 2 | (1) |
Balance at end of period, assets | 27 | 29 |
Summary of changes in Level 3 financial liabilities | ||
Balance at beginning of period, liabilities | 139 | 189 |
Settlements | (5) | (6) |
Revaluation | 78 | (25) |
Balance at end of period, liabilities | 212 | 158 |
Boddington Contingent Consideration | ||
Summary of changes in Level 3 financial liabilities | ||
Balance at beginning of period, liabilities | 10 | 10 |
Balance at end of period, liabilities | 12 | 10 |
Boddington Contingent Consideration | Other expense, net | ||
Summary of changes in Level 3 financial liabilities | ||
Revaluation | 2 | |
Holt property royalty | ||
Summary of changes in Level 3 financial liabilities | ||
Balance at beginning of period, liabilities | 129 | 179 |
Balance at end of period, liabilities | 200 | 148 |
Holt property royalty | Income (loss) from discontinued operations | ||
Summary of changes in Level 3 financial liabilities | ||
Settlements | (5) | (6) |
Revaluation | 76 | (25) |
Auction rate securities | ||
Summary of changes in Level 3 financial assets | ||
Balance at beginning of period, assets | 7 | 6 |
Balance at end of period, assets | 7 | 7 |
Auction rate securities | Unrealized (loss) on marketable securities, net | ||
Summary of changes in Level 3 financial assets | ||
Revaluation | 1 | |
Asset backed commercial paper | ||
Summary of changes in Level 3 financial assets | ||
Balance at beginning of period, assets | 18 | 24 |
Balance at end of period, assets | 20 | 22 |
Asset backed commercial paper | Unrealized (loss) on marketable securities, net | ||
Summary of changes in Level 3 financial assets | ||
Revaluation | $ 2 | $ (2) |
DERIVATIVE INSTRUMENTS - Foreig
DERIVATIVE INSTRUMENTS - Foreign Currency Derivative Contracts Outstanding (Details) - Asia Pacific - Cash Flow Hedges - AUD AUD in Millions | Jun. 30, 2016AUD$ / AUD |
Derivative contracts | |
Derivative notional amount | AUD | AUD 183 |
Average rate | $ / AUD | 0.94 |
Expected Maturity Date - 2016 | |
Derivative contracts | |
Derivative notional amount | AUD | AUD 72 |
Average rate | $ / AUD | 0.95 |
Expected hedge ratio | 11.00% |
Expected Maturity Date - 2017 | |
Derivative contracts | |
Derivative notional amount | AUD | AUD 105 |
Average rate | $ / AUD | 0.93 |
Expected hedge ratio | 8.00% |
Expected Maturity Date - 2018 | |
Derivative contracts | |
Derivative notional amount | AUD | AUD 6 |
Average rate | $ / AUD | 0.92 |
Expected hedge ratio | 4.00% |
DERIVATIVE INSTRUMENTS - Diesel
DERIVATIVE INSTRUMENTS - Diesel Derivative Contracts Outstanding (Details) - Cash Flow Hedges - North America gal in Millions | 6 Months Ended |
Jun. 30, 2016$ / galgal | |
Derivative contracts | |
Diesel gallons (millions) | gal | 27 |
Average rate ($/gallon) | $ / gal | 1.92 |
Diesel forward contracts maturing in 2016 | |
Derivative contracts | |
Diesel gallons (millions) | gal | 12 |
Average rate ($/gallon) | $ / gal | 2.14 |
Expected hedge ratio | 61.00% |
Diesel forward contracts maturing in 2017 | |
Derivative contracts | |
Diesel gallons (millions) | gal | 15 |
Average rate ($/gallon) | $ / gal | 1.75 |
Expected hedge ratio | 39.00% |
DERIVATIVE INSTRUMENTS - Fair V
DERIVATIVE INSTRUMENTS - Fair Values of Instruments Designated as Hedges (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Derivative contracts | ||
Potential effect of netting derivative assets against liabilities | $ 2 | |
Cash Flow Hedges | Other current assets | Designated | ||
Derivative contracts | ||
Fair Value of Derivative Instruments, Assets | 1 | |
Cash Flow Hedges | Other current assets | Designated | Diesel forward contracts | ||
Derivative contracts | ||
Fair Value of Derivative Instruments, Assets | 1 | |
Cash Flow Hedges | Other noncurrent assets | Designated | ||
Derivative contracts | ||
Fair Value of Derivative Instruments, Assets | 1 | |
Cash Flow Hedges | Other noncurrent assets | Designated | Diesel forward contracts | ||
Derivative contracts | ||
Fair Value of Derivative Instruments, Assets | 1 | |
Cash Flow Hedges | Other current liabilities | Designated | ||
Derivative contracts | ||
Fair Value of Derivative Instruments, Liabilities | 39 | $ 63 |
Cash Flow Hedges | Other current liabilities | Designated | Foreign exchange forward contracts | AUD | ||
Derivative contracts | ||
Fair Value of Derivative Instruments, Liabilities | 26 | 36 |
Cash Flow Hedges | Other current liabilities | Designated | Diesel forward contracts | ||
Derivative contracts | ||
Fair Value of Derivative Instruments, Liabilities | 13 | 27 |
Cash Flow Hedges | Other non-current liabilities | Designated | ||
Derivative contracts | ||
Fair Value of Derivative Instruments, Liabilities | 11 | 29 |
Cash Flow Hedges | Other non-current liabilities | Designated | Foreign exchange forward contracts | AUD | ||
Derivative contracts | ||
Fair Value of Derivative Instruments, Liabilities | 10 | 24 |
Cash Flow Hedges | Other non-current liabilities | Designated | Diesel forward contracts | ||
Derivative contracts | ||
Fair Value of Derivative Instruments, Liabilities | $ 1 | $ 5 |
DERIVATIVE INSTRUMENTS - Locati
DERIVATIVE INSTRUMENTS - Location and Amount of Gains (Losses) Reported in Financial Statements (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Derivative contracts | ||||
Approximate loss amount to be reclassified from accumulated other comprehensive income (loss), net of tax to income | $ 41 | |||
Cash Flow Hedges | Foreign exchange forward contracts | ||||
Derivative contracts | ||||
Gain (loss) recognized in other comprehensive income | $ (3) | $ 3 | 4 | $ (24) |
Gain (loss) reclassified from Accumulated other comprehensive income into income (effective portion) | (10) | (6) | (20) | (13) |
Cash Flow Hedges | Diesel forward contracts | ||||
Derivative contracts | ||||
Gain (loss) recognized in other comprehensive income | 7 | 4 | 5 | (1) |
Gain (loss) reclassified from Accumulated other comprehensive income into income (effective portion) | (5) | (6) | (14) | (13) |
Cash Flow Hedges | Interest rate contracts | ||||
Derivative contracts | ||||
Gain (loss) reclassified from Accumulated other comprehensive income into income (effective portion) | (5) | $ (4) | (8) | (9) |
Other income, net | Cash Flow Hedges | Diesel forward contracts | ||||
Derivative contracts | ||||
Gain (loss) reclassified from Accumulated other comprehensive income into income (ineffective portion) | $ 1 | $ 1 | $ 1 |
DERIVATIVE INSTRUMENTS - Additi
DERIVATIVE INSTRUMENTS - Additional Information (Details) oz in Thousands, lb in Millions | 6 Months Ended |
Jun. 30, 2016lboz$ / oz$ / lb | |
Gold Contracts - Embedded Derivative | |
Provisional Gold and Copper Sales - Embedded derivatives | |
Provisional pricing quantity sales (in ounces or pounds) | oz | 258 |
Average price, subject to final pricing (in USD per ounce or pound) | $ / oz | 1,323 |
Copper Contracts - Embedded Derivative | |
Provisional Gold and Copper Sales - Embedded derivatives | |
Provisional pricing quantity sales (in ounces or pounds) | lb | 125 |
Average price, subject to final pricing (in USD per ounce or pound) | $ / lb | 2.19 |
INVESTMENTS - Marketable Securi
INVESTMENTS - Marketable Securities - Amortized Cost/Fair Value (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Investments | ||
Investments, Fair/Equity Basis | $ 237 | $ 402 |
Investments, Current | Marketable equity securities | ||
Investments | ||
Cost/Equity Basis | 19 | 19 |
Unrealized Gain | 28 | 2 |
Unrealized Loss | (1) | (2) |
Fair/Equity Basis - Current Marketable Equity Securities | 46 | 19 |
Investments, Current | Marketable equity securities | Gabriel Resources Ltd. | ||
Investments | ||
Cost/Equity Basis | 5 | 5 |
Unrealized Gain | 13 | |
Fair/Equity Basis - Current Marketable Equity Securities | 18 | 5 |
Investments, Current | Marketable equity securities | Other Marketable Equity Securities | ||
Investments | ||
Cost/Equity Basis | 14 | 14 |
Unrealized Gain | 15 | 2 |
Unrealized Loss | (1) | (2) |
Fair/Equity Basis - Current Marketable Equity Securities | 28 | 14 |
Investments, Noncurrent | ||
Investments | ||
Other investments, at cost | 6 | 6 |
Investments, Cost/Equity Basis | 235 | 317 |
Unrealized Gain | 3 | 86 |
Unrealized Loss | (1) | (1) |
Investments, Fair/Equity Basis | 237 | 402 |
Investments, Noncurrent | TMAC | ||
Investments | ||
Equity Method Investments | 97 | 101 |
Investments, Noncurrent | Minera La Zanja S.R.L. | ||
Investments | ||
Equity Method Investments | 68 | 71 |
Investments, Noncurrent | Novo Resources Corp | ||
Investments | ||
Equity Method Investments | 15 | 14 |
Investments, Noncurrent | Euronimba Ltd. | ||
Investments | ||
Equity Method Investments | 3 | 2 |
Investments, Noncurrent | Marketable Debt Securities | ||
Investments | ||
Cost/Equity Basis | 27 | 25 |
Unrealized Gain | 1 | 1 |
Unrealized Loss | (1) | (1) |
Fair/Equity Basis - Long-Term Marketable Securities | 27 | 25 |
Investments, Noncurrent | Marketable equity securities | ||
Investments | ||
Cost/Equity Basis | 19 | 98 |
Unrealized Gain | 2 | 85 |
Fair/Equity Basis - Long-Term Marketable Securities | 21 | 183 |
Investments, Noncurrent | Marketable equity securities | Regis Resources Ltd. | ||
Investments | ||
Cost/Equity Basis | 81 | |
Unrealized Gain | 82 | |
Fair/Equity Basis - Long-Term Marketable Securities | 163 | |
Investments, Noncurrent | Marketable equity securities | Other Marketable Equity Securities | ||
Investments | ||
Cost/Equity Basis | 17 | |
Unrealized Gain | 3 | |
Fair/Equity Basis - Long-Term Marketable Securities | 20 | |
Investments, Noncurrent | Asset backed commercial paper | ||
Investments | ||
Cost/Equity Basis | 19 | 17 |
Unrealized Gain | 1 | 1 |
Fair/Equity Basis - Long-Term Marketable Securities | 20 | 18 |
Investments, Noncurrent | Auction rate securities | ||
Investments | ||
Cost/Equity Basis | 8 | 8 |
Unrealized Loss | (1) | (1) |
Fair/Equity Basis - Long-Term Marketable Securities | $ 7 | $ 7 |
INVESTMENTS - Investment sales
INVESTMENTS - Investment sales (Details) - Regis Resources Ltd. $ in Millions | 1 Months Ended |
Mar. 31, 2015USD ($) | |
Sale of AFS securities | |
Proceeds from sale of available for sale securities equity | $ 184 |
Other income, net | |
Sale of AFS securities | |
Gain on sale of investments, net | $ 103 |
INVESTMENTS - Equity Method Inv
INVESTMENTS - Equity Method Investments (Details) - TMAC CAD in Millions, $ in Millions | 1 Months Ended | 3 Months Ended | ||
Jul. 31, 2016CADshares | Mar. 31, 2016CADshares | Jun. 30, 2016 | Sep. 30, 2015USD ($) | |
Sale of stock by subsidiary | ||||
Ownership interest in subsidiary after subsidiary's IPO and warrant exercises (as a percent) | 29.20% | 29.37% | 29.20% | |
Other income, net | ||||
Deconsolidation disclosures | ||||
Gain from derecognization of assets, liabilities, and non-controlling interest | $ | $ 76 | |||
TMAC | IPO | ||||
Sale of stock by subsidiary | ||||
Shares acquired in subsidiary sale of stock | shares | 242,979 | |||
Equity method investment acquired | CAD | CAD 2 | |||
TMAC | Secondary offering | ||||
Sale of stock by subsidiary | ||||
Shares acquired in subsidiary sale of stock | shares | 1,159,000 | |||
Equity method investment acquired | CAD | CAD 17.5 |
INVESTMENTS - Impairments and O
INVESTMENTS - Impairments and Other Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Impairments | ||||
Impairment of investments | $ 0 | $ 16 | $ 0 | $ 73 |
Increase (decrease) in fair value of marketable securities previously impaired | $ 22 | $ (26) | $ 22 | $ (26) |
INVESTMENTS - Gross Unrealized
INVESTMENTS - Gross Unrealized Losses and Fair Value of the Company's Investments (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Securities in a continuous loss position: Fair Value | ||
Less than 12 Months | $ 4 | $ 5 |
12 Months or Greater | 7 | 7 |
Total Fair Value | 11 | 12 |
Securities in a continuous loss position: Unrealized Losses | ||
Less than 12 Months | 1 | 2 |
12 Months or Greater | 1 | 1 |
Total Unrealized Loss | 2 | 3 |
Marketable equity securities | ||
Securities in a continuous loss position: Fair Value | ||
Less than 12 Months | 4 | 5 |
Total Fair Value | 4 | 5 |
Securities in a continuous loss position: Unrealized Losses | ||
Less than 12 Months | 1 | 2 |
Total Unrealized Loss | 1 | 2 |
Auction rate securities | ||
Securities in a continuous loss position: Fair Value | ||
12 Months or Greater | 7 | 7 |
Total Fair Value | 7 | 7 |
Securities in a continuous loss position: Unrealized Losses | ||
12 Months or Greater | 1 | 1 |
Total Unrealized Loss | $ 1 | $ 1 |
INVENTORIES - Summary of Invent
INVENTORIES - Summary of Inventories (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Inventory, net | ||
Materials, supplies and other | $ 457 | $ 454 |
Concentrate and copper cathode | 137 | 128 |
In-process | 123 | 118 |
Precious metals | 11 | 10 |
Total inventories | $ 728 | $ 710 |
STOCKPILES AND ORE ON LEACH P80
STOCKPILES AND ORE ON LEACH PADS - By location (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Stockpiles And Ore On Leach Pads | ||
Current stockpiles and ore on leach pads | $ 953 | $ 896 |
Long-term stockpiles and ore on leach pads | 2,956 | 3,000 |
Stockpiles and ore on leach pads | 3,909 | 3,896 |
Stockpiles | ||
Stockpiles And Ore On Leach Pads | ||
Current stockpiles and ore on leach pads | 543 | 554 |
Long-term stockpiles and ore on leach pads | 2,595 | 2,622 |
Ore on Leach Pads | ||
Stockpiles And Ore On Leach Pads | ||
Current stockpiles and ore on leach pads | 410 | 342 |
Long-term stockpiles and ore on leach pads | 361 | 378 |
Operating Segments | Carlin | ||
Stockpiles And Ore On Leach Pads | ||
Stockpiles and ore on leach pads | 440 | 394 |
Operating Segments | Phoenix | ||
Stockpiles And Ore On Leach Pads | ||
Stockpiles and ore on leach pads | 105 | 106 |
Operating Segments | Twin Creeks | ||
Stockpiles And Ore On Leach Pads | ||
Stockpiles and ore on leach pads | 334 | 329 |
Operating Segments | Long Canyon | ||
Stockpiles And Ore On Leach Pads | ||
Stockpiles and ore on leach pads | 1 | |
Operating Segments | Cripple Creek & Victor mine | ||
Stockpiles And Ore On Leach Pads | ||
Stockpiles and ore on leach pads | 348 | 319 |
Operating Segments | Yanacocha | ||
Stockpiles And Ore On Leach Pads | ||
Stockpiles and ore on leach pads | 409 | 440 |
Operating Segments | Merian | ||
Stockpiles And Ore On Leach Pads | ||
Stockpiles and ore on leach pads | 8 | 4 |
Operating Segments | Boddington | ||
Stockpiles And Ore On Leach Pads | ||
Stockpiles and ore on leach pads | 395 | 390 |
Operating Segments | Tanami | ||
Stockpiles And Ore On Leach Pads | ||
Stockpiles and ore on leach pads | 8 | 12 |
Operating Segments | Kalgoorlie | ||
Stockpiles And Ore On Leach Pads | ||
Stockpiles and ore on leach pads | 107 | 109 |
Operating Segments | Batu Hijau | ||
Stockpiles And Ore On Leach Pads | ||
Stockpiles and ore on leach pads | 1,158 | 1,218 |
Operating Segments | Ahafo | ||
Stockpiles And Ore On Leach Pads | ||
Stockpiles and ore on leach pads | 471 | 456 |
Operating Segments | Akyem | ||
Stockpiles And Ore On Leach Pads | ||
Stockpiles and ore on leach pads | $ 125 | $ 119 |
STOCKPILES AND ORE ON LEACH P81
STOCKPILES AND ORE ON LEACH PADS - Write-downs (Details) - Stockpiles and ore on leach pads - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended |
Jun. 30, 2016 | Jun. 30, 2016 | |
Carlin | ||
Write-downs | ||
Inventory write-downs | $ 31 | $ 58 |
Twin Creeks | ||
Write-downs | ||
Inventory write-downs | 10 | 12 |
Yanacocha | ||
Write-downs | ||
Inventory write-downs | 42 | 87 |
Costs applicable to sales | ||
Write-downs | ||
Inventory write-downs | 57 | 107 |
Depreciation and Amortization | ||
Write-downs | ||
Inventory write-downs | $ 26 | $ 50 |
DEBT - Debt Tender (Details)
DEBT - Debt Tender (Details) $ in Millions | Mar. 29, 2016USD ($) |
2019 and 2039 Notes | Interest rate contracts | Reclassification Out of Accumulated Other Comprehensive Income | |
Debt Tender Offer | |
Interest Expense | $ 2 |
2019 and 2039 Notes | Other income, net | |
Debt Tender Offer | |
Pre-tax loss on debt repurchased | 4 |
2019 Senior Notes | |
Debt Tender Offer | |
Debt repurchased | 274 |
2039 Senior Notes | |
Debt Tender Offer | |
Debt repurchased | $ 226 |
DEBT - Restricted Cash (Details
DEBT - Restricted Cash (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Restricted cash | ||||
Debt payments | $ 641 | $ 281 | ||
PTNNT Revolving Credit Facility | ||||
Restricted cash | ||||
Debt payments | $ 140 | |||
PTNNT Revolving Credit Facility | Other current assets | ||||
Restricted cash | ||||
Restricted cash | $ 24 | $ 24 | $ 0 |
DEBT - Maturities (Details)
DEBT - Maturities (Details) $ in Millions | Jun. 30, 2016USD ($) |
Scheduled minimum debt repayments | |
Remainder of 2016 | $ 3 |
2,017 | 765 |
2,018 | 0 |
2,019 | 901 |
2,020 | 0 |
Debt repayments, thereafter | 3,974 |
Scheduled minimum capital lease repayments | |
Remainder of 2016 | 3 |
2,017 | 6 |
2,018 | 4 |
2,019 | 4 |
2,020 | 1 |
Capital lease repayments, thereafter | $ 3 |
OTHER LIABILITIES (Details)
OTHER LIABILITIES (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Other current liabilities: | ||
Accrued operating costs | $ 122 | $ 105 |
Accrued capital expenditures | 86 | 121 |
Reclamation and remediation liabilities | 69 | 71 |
Accrued interest | 63 | 71 |
Derivative instruments | 39 | 63 |
Royalties | 52 | 63 |
Holt property royalty | 13 | 10 |
Taxes other than income and mining | 6 | 9 |
Other | 29 | 27 |
Other current liabilities, total | 479 | 540 |
Other long-term liabilities: | ||
Holt property royalty | 187 | 119 |
Income and mining taxes | 80 | 78 |
Power supply agreements | 31 | 31 |
Social development obligations | 29 | 29 |
Derivative instruments | 11 | 29 |
Boddington contingent consideration | 10 | 10 |
Other | 13 | 14 |
Other long-term liabilities, total | $ 361 | $ 310 |
CHANGES IN EQUITY (Details)
CHANGES IN EQUITY (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Changes in Equity | ||||
At beginning of period | $ 14,292 | |||
Net income (loss) attributable to Newmont stockholders | $ 23 | $ 72 | 75 | $ 255 |
Net income (loss) attributable to noncontrolling interests | 39 | 76 | 122 | 122 |
Other comprehensive income (loss) | 45 | 52 | (7) | 38 |
At end of period | 14,383 | 14,268 | 14,383 | 14,268 |
Common Stock | ||||
Changes in Equity | ||||
At beginning of period | 847 | 798 | ||
Stock based awards | 2 | 2 | ||
Stock issuance | 46 | |||
At end of period | 849 | 846 | 849 | 846 |
Additional Paid-in Capital | ||||
Changes in Equity | ||||
At beginning of period | 9,427 | 8,712 | ||
Stock based awards | 30 | 38 | ||
Stock issuance | 629 | |||
Sale of noncontrolling interests | 12 | |||
At end of period | 9,457 | 9,391 | 9,457 | 9,391 |
Accumulated Other Comprehensive Income (Loss) | ||||
Changes in Equity | ||||
At beginning of period | (334) | (478) | ||
Other comprehensive income (loss) | (7) | 38 | ||
At end of period | (341) | (440) | (341) | (440) |
Retained Earnings | ||||
Changes in Equity | ||||
At beginning of period | 1,410 | 1,242 | ||
Net income (loss) attributable to Newmont stockholders | 75 | 255 | ||
Dividends paid | (27) | (23) | ||
At end of period | 1,458 | 1,474 | 1,458 | 1,474 |
Noncontrolling Interests | ||||
Changes in Equity | ||||
At beginning of period | 2,942 | 2,815 | ||
Net income (loss) attributable to noncontrolling interests | 122 | 122 | ||
Dividends paid to noncontrolling interests | (146) | (3) | ||
Funding from noncontrolling interests, net | 43 | 45 | ||
Sale of noncontrolling interests | 22 | |||
Other | (1) | (4) | ||
At end of period | $ 2,960 | $ 2,997 | $ 2,960 | $ 2,997 |
RECLASSIFICATIONS OUT OF ACCU87
RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) - Components of AOCI (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | ||||
At beginning of period | $ 14,292 | |||
Other comprehensive income (loss) | $ 45 | $ 52 | (7) | $ 38 |
At end of period | 14,383 | 14,268 | 14,383 | 14,268 |
Unrealized (loss) on marketable securities, net | ||||
RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | ||||
At beginning of period | (43) | |||
Change in other comprehensive income (loss) before reclassifications | 47 | |||
Reclassifications from accumulated other comprehensive income (loss) | (103) | |||
Other comprehensive income (loss) | (56) | |||
At end of period | (99) | (99) | ||
Foreign currency translation adjustments | ||||
RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | ||||
At beginning of period | 116 | |||
Change in other comprehensive income (loss) before reclassifications | 7 | |||
Other comprehensive income (loss) | 7 | |||
At end of period | 123 | 123 | ||
Pension and other post-retirement benefit adjustments | ||||
RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | ||||
At beginning of period | (207) | |||
Change in other comprehensive income (loss) before reclassifications | 1 | |||
Reclassifications from accumulated other comprehensive income (loss) | 3 | 5 | 6 | 10 |
Other comprehensive income (loss) | 7 | |||
At end of period | (200) | (200) | ||
Changes in fair value of cash flow hedge instruments | ||||
RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | ||||
At beginning of period | (200) | |||
Change in other comprehensive income (loss) before reclassifications | 7 | |||
Reclassifications from accumulated other comprehensive income (loss) | 28 | |||
Other comprehensive income (loss) | 35 | |||
At end of period | (165) | (165) | ||
Accumulated Other Comprehensive Income (Loss) | ||||
RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | ||||
At beginning of period | (334) | (478) | ||
Change in other comprehensive income (loss) before reclassifications | 62 | |||
Reclassifications from accumulated other comprehensive income (loss) | (69) | |||
Other comprehensive income (loss) | (7) | 38 | ||
At end of period | $ (341) | $ (440) | $ (341) | $ (440) |
RECLASSIFICATIONS OUT OF ACCU88
RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) - Reclassifications (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | ||
Amount Reclassified from Accumulated Other Comprehensive Income (Loss) | |||||
Costs applicable to sales | [1] | $ 1,059 | $ 1,027 | $ 2,140 | $ 2,054 |
Other income, net | 23 | (98) | 12 | ||
Interest expense, net | 71 | 82 | 150 | 167 | |
Total before tax | (404) | (298) | (894) | (721) | |
Tax benefit (expense) | 310 | 152 | 634 | 345 | |
Net of tax | (62) | (148) | (197) | (377) | |
Unrealized (loss) on marketable securities, net | |||||
Amount Reclassified from Accumulated Other Comprehensive Income (Loss) | |||||
Net of tax | (103) | ||||
Pension and other post-retirement benefit adjustments | |||||
Amount Reclassified from Accumulated Other Comprehensive Income (Loss) | |||||
Tax benefit (expense) | (1) | (2) | (3) | (4) | |
Net of tax | 3 | 5 | 6 | 10 | |
Accumulated defined benefit pension plans adjustment, amortization | |||||
Amount Reclassified from Accumulated Other Comprehensive Income (Loss) | |||||
Total before tax | 4 | 7 | 9 | 14 | |
Changes in fair value of cash flow hedge instruments | |||||
Amount Reclassified from Accumulated Other Comprehensive Income (Loss) | |||||
Net of tax | 28 | ||||
Reclassification Out of Accumulated Other Comprehensive Income | |||||
Amount Reclassified from Accumulated Other Comprehensive Income (Loss) | |||||
Net of tax | 17 | 32 | (69) | 105 | |
Reclassification Out of Accumulated Other Comprehensive Income | Unrealized (loss) on marketable securities, net | |||||
Amount Reclassified from Accumulated Other Comprehensive Income (Loss) | |||||
Total before tax | 16 | (103) | 72 | ||
Net of tax | 16 | (103) | 72 | ||
Reclassification Out of Accumulated Other Comprehensive Income | Accumulated net marketable securities adjustments - sale of marketable securities | |||||
Amount Reclassified from Accumulated Other Comprehensive Income (Loss) | |||||
Other income, net | (103) | (1) | |||
Reclassification Out of Accumulated Other Comprehensive Income | Accumulated net marketable securities adjustments - Impairment of marketable securities | |||||
Amount Reclassified from Accumulated Other Comprehensive Income (Loss) | |||||
Other income, net | 16 | 73 | |||
Reclassification Out of Accumulated Other Comprehensive Income | Changes in fair value of cash flow hedge instruments | |||||
Amount Reclassified from Accumulated Other Comprehensive Income (Loss) | |||||
Total before tax | 19 | 16 | 41 | 34 | |
Tax benefit (expense) | (5) | (5) | (13) | (11) | |
Net of tax | 14 | 11 | 28 | 23 | |
Reclassification Out of Accumulated Other Comprehensive Income | Operating cash flow hedges | Changes in fair value of cash flow hedge instruments | |||||
Amount Reclassified from Accumulated Other Comprehensive Income (Loss) | |||||
Costs applicable to sales | 15 | 12 | 34 | 26 | |
Other income, net | (1) | (1) | (1) | ||
Reclassification Out of Accumulated Other Comprehensive Income | Interest rate contracts | Changes in fair value of cash flow hedge instruments | |||||
Amount Reclassified from Accumulated Other Comprehensive Income (Loss) | |||||
Interest expense, net | $ 5 | $ 4 | $ 8 | $ 9 | |
[1] | Excludes Depreciation and amortization and Reclamation and remediation. |
NET CHANGE IN OPERATING ASSET89
NET CHANGE IN OPERATING ASSETS AND LIABILITIES (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Decrease (increase) in operating assets: | ||
Trade and other accounts receivables | $ 13 | $ (89) |
Inventories, stockpiles and ore on leach pads | (120) | (179) |
EGR refinery and other assets | (82) | |
Other assets | (32) | 78 |
Increase (decrease) in operating liabilities: | ||
Accounts payable and other accrued liabilities | (51) | (10) |
EGR refinery and other liabilities | 82 | |
Reclamation liabilities | (18) | (38) |
EGR refinery and other liabilities | 23 | (30) |
Net change in operating assets and liabilities | $ (185) | $ (268) |
CONDENSED CONSOLIDATING FINAN90
CONDENSED CONSOLIDATING FINANCIAL STATEMENTS - Additional Information (Details) | Jun. 30, 2016 |
NUSA | |
Condensed Financial Statements | |
Percent ownership held by Newmont | 100.00% |
CONDENSED CONSOLIDATING FINAN91
CONDENSED CONSOLIDATING FINANCIAL STATEMENTS - Statement of Operation (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | ||
Condensed Consolidating Statement of Operation | |||||
Sales | $ 2,038 | $ 1,908 | $ 4,070 | $ 3,880 | |
Costs and expenses | |||||
Costs applicable to sales | [1] | 1,059 | 1,027 | 2,140 | 2,054 |
Depreciation and amortization | 314 | 276 | 636 | 565 | |
Reclamation and remediation | 25 | 26 | 50 | 49 | |
Exploration | 38 | 48 | 68 | 81 | |
Advanced projects, research and development | 44 | 33 | 72 | 61 | |
General and administrative | 64 | 68 | 121 | 126 | |
Other expense, net | 19 | 27 | 37 | 44 | |
Total costs and expenses | 1,563 | 1,505 | 3,124 | 2,980 | |
Other income (expense) | |||||
Other income, net | (23) | 98 | (12) | ||
Interest expense, net | (71) | (82) | (150) | (167) | |
Total other income (expense) | (71) | (105) | (52) | (179) | |
Income (loss) before income and mining tax and other items | 404 | 298 | 894 | 721 | |
Income and mining tax benefit (expense) | (310) | (152) | (634) | (345) | |
Equity income (loss) of affiliates | (5) | (7) | (10) | (16) | |
Income (loss) from continuing operations | 89 | 139 | 250 | 360 | |
Income (loss) from discontinued operations | (27) | 9 | (53) | 17 | |
Net income (loss) | 62 | 148 | 197 | 377 | |
Net loss (income) attributable to noncontrolling interests | (39) | (76) | (122) | (122) | |
Net income (loss) attributable to Newmont stockholders | 23 | 72 | 75 | 255 | |
Comprehensive income (loss) | 107 | 200 | 190 | 415 | |
Noncontrolling interests | (39) | (76) | (122) | (122) | |
Comprehensive income (loss) attributable to Newmont stockholders | 68 | 124 | 68 | 293 | |
Reportable Legal Entities | Newmont Mining Corporation | |||||
Costs and expenses | |||||
Depreciation and amortization | 2 | 1 | 2 | 2 | |
Total costs and expenses | 2 | 1 | 2 | 2 | |
Other income (expense) | |||||
Other income, net | (9) | 19 | (9) | ||
Interest income - intercompany | 31 | 33 | 61 | 66 | |
Interest expense - intercompany | (10) | (4) | (18) | (7) | |
Interest expense, net | (64) | (71) | (135) | (148) | |
Total other income (expense) | (52) | (23) | (92) | (98) | |
Income (loss) before income and mining tax and other items | (54) | (24) | (94) | (100) | |
Income and mining tax benefit (expense) | (45) | 10 | 30 | 35 | |
Equity income (loss) of affiliates | 122 | 86 | 139 | 320 | |
Income (loss) from continuing operations | 23 | 72 | 75 | 255 | |
Net income (loss) | 23 | 72 | 75 | 255 | |
Net income (loss) attributable to Newmont stockholders | 23 | 72 | 75 | 255 | |
Comprehensive income (loss) | 68 | 124 | 68 | 293 | |
Comprehensive income (loss) attributable to Newmont stockholders | 68 | 124 | 68 | 293 | |
Reportable Legal Entities | Newmont USA | |||||
Condensed Consolidating Statement of Operation | |||||
Sales | 459 | 445 | 930 | 947 | |
Costs and expenses | |||||
Costs applicable to sales | 284 | 282 | 590 | 571 | |
Depreciation and amortization | 76 | 72 | 160 | 149 | |
Reclamation and remediation | 4 | 4 | 7 | 7 | |
Exploration | 10 | 10 | 16 | 16 | |
Advanced projects, research and development | 3 | 3 | 5 | 6 | |
General and administrative | 23 | 24 | 40 | 38 | |
Other expense, net | 9 | 6 | 13 | 9 | |
Total costs and expenses | 409 | 401 | 831 | 796 | |
Other income (expense) | |||||
Other income, net | 1 | 1 | 9 | ||
Interest income - intercompany | 11 | 11 | |||
Interest expense, net | (2) | (2) | (3) | ||
Total other income (expense) | 1 | 9 | (1) | 17 | |
Income (loss) before income and mining tax and other items | 51 | 53 | 98 | 168 | |
Income and mining tax benefit (expense) | (5) | (8) | (16) | (37) | |
Equity income (loss) of affiliates | (174) | (22) | (448) | (33) | |
Income (loss) from continuing operations | (128) | 23 | (366) | 98 | |
Net income (loss) | (128) | 23 | (366) | 98 | |
Net income (loss) attributable to Newmont stockholders | (128) | 23 | (366) | 98 | |
Comprehensive income (loss) | (116) | 67 | (348) | 149 | |
Comprehensive income (loss) attributable to Newmont stockholders | (116) | 67 | (348) | 149 | |
Reportable Legal Entities | Other Subsidiaries | |||||
Condensed Consolidating Statement of Operation | |||||
Sales | 1,579 | 1,463 | 3,140 | 2,933 | |
Costs and expenses | |||||
Costs applicable to sales | 775 | 745 | 1,550 | 1,483 | |
Depreciation and amortization | 236 | 203 | 474 | 414 | |
Reclamation and remediation | 21 | 22 | 43 | 42 | |
Exploration | 28 | 38 | 52 | 65 | |
Advanced projects, research and development | 41 | 30 | 67 | 55 | |
General and administrative | 41 | 44 | 81 | 88 | |
Other expense, net | 10 | 21 | 24 | 35 | |
Total costs and expenses | 1,152 | 1,103 | 2,291 | 2,182 | |
Other income (expense) | |||||
Other income, net | 8 | (42) | 97 | (12) | |
Interest income - intercompany | 10 | 2 | 19 | 7 | |
Interest expense - intercompany | (31) | (42) | (62) | (77) | |
Interest expense, net | (7) | (9) | (13) | (16) | |
Total other income (expense) | (20) | (91) | 41 | (98) | |
Income (loss) before income and mining tax and other items | 407 | 269 | 890 | 653 | |
Income and mining tax benefit (expense) | (260) | (154) | (648) | (343) | |
Equity income (loss) of affiliates | (5) | 20 | (3) | 43 | |
Income (loss) from continuing operations | 142 | 135 | 239 | 353 | |
Income (loss) from discontinued operations | (27) | 9 | (53) | 17 | |
Net income (loss) | 115 | 144 | 186 | 370 | |
Net loss (income) attributable to noncontrolling interests | (39) | (102) | (122) | (179) | |
Net income (loss) attributable to Newmont stockholders | 76 | 42 | 64 | 191 | |
Comprehensive income (loss) | 145 | 151 | 155 | 352 | |
Noncontrolling interests | (39) | (102) | (122) | (173) | |
Comprehensive income (loss) attributable to Newmont stockholders | 106 | 49 | 33 | 179 | |
Eliminations | |||||
Other income (expense) | |||||
Interest income - intercompany | (41) | (46) | (80) | (84) | |
Interest expense - intercompany | 41 | 46 | 80 | 84 | |
Equity income (loss) of affiliates | 52 | (91) | 302 | (346) | |
Income (loss) from continuing operations | 52 | (91) | 302 | (346) | |
Net income (loss) | 52 | (91) | 302 | (346) | |
Net loss (income) attributable to noncontrolling interests | 26 | 57 | |||
Net income (loss) attributable to Newmont stockholders | 52 | (65) | 302 | (289) | |
Comprehensive income (loss) | 10 | (142) | 315 | (379) | |
Noncontrolling interests | 26 | 51 | |||
Comprehensive income (loss) attributable to Newmont stockholders | $ 10 | $ (116) | $ 315 | $ (328) | |
[1] | Excludes Depreciation and amortization and Reclamation and remediation. |
CONDENSED CONSOLIDATING FINAN92
CONDENSED CONSOLIDATING FINANCIAL STATEMENTS - Statement of Cash Flows (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Operating activities: | |||||
Net cash provided by operating activities | $ 1,299 | $ 1,063 | |||
Investing activities: | |||||
Additions to property, plant and mine development | $ (294) | $ (322) | (591) | (606) | |
Sales of investments | 184 | 29 | |||
Sales of other assets | 8 | 44 | |||
Other | (6) | (6) | |||
Net cash used in investing activities | (405) | (539) | |||
Financing activities: | |||||
Repayment of debt | (641) | (281) | |||
Proceeds from stock issuance, net | 675 | $ 675 | |||
Sale of noncontrolling interests | 37 | ||||
Funding from noncontrolling interests | 50 | 62 | |||
Dividends paid to noncontrolling interests | (146) | (3) | |||
Dividends paid to common stockholders | (27) | (23) | |||
(Increase) decrease in restricted cash | (13) | (59) | |||
Other | (1) | (8) | |||
Net cash (used in) provided by financing activities | (778) | 400 | |||
Effect of exchange rate changes on cash | 4 | (19) | |||
Net change in cash and cash equivalents | 120 | 905 | |||
Cash and cash equivalents at beginning of period | 2,782 | 2,403 | 2,403 | ||
Cash and cash equivalents at end of period | 2,902 | 3,308 | 2,902 | 3,308 | 2,782 |
Reportable Legal Entities | Newmont Mining Corporation | |||||
Operating activities: | |||||
Net cash provided by operating activities | 720 | 69 | |||
Financing activities: | |||||
Repayment of debt | (498) | (200) | |||
Net intercompany borrowings (repayments) | (195) | (518) | |||
Proceeds from stock issuance, net | 675 | ||||
Dividends paid to common stockholders | (27) | (23) | |||
Other | (3) | ||||
Net cash (used in) provided by financing activities | (720) | (69) | |||
Reportable Legal Entities | Newmont USA | |||||
Operating activities: | |||||
Net cash provided by operating activities | 304 | 175 | |||
Investing activities: | |||||
Additions to property, plant and mine development | (129) | (160) | |||
Sales of investments | 25 | ||||
Sales of other assets | 6 | ||||
Net cash used in investing activities | (129) | (129) | |||
Financing activities: | |||||
Repayment of debt | (1) | (1) | |||
Net intercompany borrowings (repayments) | (492) | 619 | |||
Sale of noncontrolling interests | 3 | ||||
Dividends paid to common stockholders | (862) | ||||
Other | 1 | ||||
Net cash (used in) provided by financing activities | (1,355) | 622 | |||
Net change in cash and cash equivalents | (1,180) | 668 | |||
Cash and cash equivalents at beginning of period | 1,181 | 1,097 | 1,097 | ||
Cash and cash equivalents at end of period | 1 | 1,765 | 1 | 1,765 | 1,181 |
Reportable Legal Entities | Other Subsidiaries | |||||
Operating activities: | |||||
Net cash provided by operating activities | 1,137 | 819 | |||
Investing activities: | |||||
Additions to property, plant and mine development | (462) | (446) | |||
Sales of investments | 184 | 4 | |||
Sales of other assets | 8 | 38 | |||
Other | (6) | (6) | |||
Net cash used in investing activities | (276) | (410) | |||
Financing activities: | |||||
Repayment of debt | (142) | (80) | |||
Net intercompany borrowings (repayments) | 687 | (101) | |||
Sale of noncontrolling interests | 34 | ||||
Funding from noncontrolling interests | 50 | 62 | |||
Dividends paid to noncontrolling interests | (146) | (3) | |||
(Increase) decrease in restricted cash | (13) | (59) | |||
Other | (1) | (6) | |||
Net cash (used in) provided by financing activities | 435 | (153) | |||
Effect of exchange rate changes on cash | 4 | (19) | |||
Net change in cash and cash equivalents | 1,300 | 237 | |||
Cash and cash equivalents at beginning of period | 1,601 | 1,306 | 1,306 | ||
Cash and cash equivalents at end of period | $ 2,901 | $ 1,543 | 2,901 | $ 1,543 | $ 1,601 |
Eliminations | |||||
Operating activities: | |||||
Net cash provided by operating activities | (862) | ||||
Financing activities: | |||||
Dividends paid to common stockholders | 862 | ||||
Net cash (used in) provided by financing activities | $ 862 |
CONDENSED CONSOLIDATING FINAN93
CONDENSED CONSOLIDATING FINANCIAL STATEMENTS - Balance Sheet (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 | Jun. 30, 2015 | Dec. 31, 2014 |
Assets | ||||
Cash and cash equivalents | $ 2,902 | $ 2,782 | $ 3,308 | $ 2,403 |
Trade receivables | 315 | 260 | ||
Other accounts receivables | 194 | 185 | ||
Investments | 46 | 19 | ||
Inventories | 728 | 710 | ||
Stockpiles and ore on leach pads | 953 | 896 | ||
Other current assets | 156 | 131 | ||
Current assets | 5,294 | 4,983 | ||
Property, plant and mine development, net | 14,234 | 14,303 | ||
Investments | 237 | 402 | ||
Stockpiles and ore on leach pads | 2,956 | 3,000 | ||
Deferred income tax assets | 1,264 | 1,718 | ||
Other non-current assets | 718 | 730 | ||
Total assets | 24,703 | 25,136 | ||
Liabilities | ||||
Debt | 196 | 149 | ||
Accounts payable | 348 | 396 | ||
Employee-related benefits | 211 | 293 | ||
Income and mining taxes | 126 | 38 | ||
Other current liabilities | 479 | 540 | ||
Current liabilities | 1,360 | 1,416 | ||
Debt (non-current) | 5,375 | 6,041 | ||
Reclamation and remediation liabilities | 1,835 | 1,800 | ||
Deferred income tax liabilities | 926 | 840 | ||
Employee-related benefits | 463 | 437 | ||
Other non-current liabilities | 361 | 310 | ||
Total liabilities | 10,320 | 10,844 | ||
Equity | ||||
Newmont stockholders' equity | 11,423 | 11,350 | ||
Noncontrolling interests | 2,960 | 2,942 | ||
Total equity (Note 18) | 14,383 | 14,292 | 14,268 | |
Total liabilities and equity | 24,703 | 25,136 | ||
Reportable Legal Entities | Newmont Mining Corporation | ||||
Assets | ||||
Intercompany receivable | 5,546 | 4,587 | ||
Current assets | 5,546 | 4,587 | ||
Property, plant and mine development, net | 23 | 26 | ||
Investments in subsidiaries | 14,654 | 15,650 | ||
Deferred income tax assets | 266 | 223 | ||
Non-current intercompany receivable | 1,703 | 1,742 | ||
Total assets | 22,192 | 22,228 | ||
Liabilities | ||||
Intercompany payable | 5,261 | 4,888 | ||
Other current liabilities | 62 | 70 | ||
Current liabilities | 5,323 | 4,958 | ||
Debt (non-current) | 5,361 | 5,839 | ||
Employee-related benefits | 2 | |||
Non-current intercompany payable | 83 | 81 | ||
Total liabilities | 10,769 | 10,878 | ||
Equity | ||||
Newmont stockholders' equity | 11,423 | 11,350 | ||
Total equity (Note 18) | 11,423 | 11,350 | ||
Total liabilities and equity | 22,192 | 22,228 | ||
Reportable Legal Entities | Newmont USA | ||||
Assets | ||||
Cash and cash equivalents | 1 | 1,181 | 1,765 | 1,097 |
Trade receivables | 35 | 31 | ||
Other accounts receivables | 1 | |||
Intercompany receivable | 5,806 | 6,212 | ||
Inventories | 144 | 158 | ||
Stockpiles and ore on leach pads | 260 | 201 | ||
Other current assets | 40 | 53 | ||
Current assets | 6,287 | 7,836 | ||
Property, plant and mine development, net | 3,172 | 3,179 | ||
Investments | 15 | 15 | ||
Investments in subsidiaries | 1,422 | 3,886 | ||
Stockpiles and ore on leach pads | 612 | 621 | ||
Deferred income tax assets | 311 | 757 | ||
Non-current intercompany receivable | 532 | 434 | ||
Other non-current assets | 206 | 253 | ||
Total assets | 12,557 | 16,981 | ||
Liabilities | ||||
Debt | 3 | 3 | ||
Accounts payable | 60 | 78 | ||
Intercompany payable | 4,873 | 5,495 | ||
Employee-related benefits | 85 | 136 | ||
Income and mining taxes | 5 | |||
Other current liabilities | 94 | 133 | ||
Current liabilities | 5,120 | 5,845 | ||
Debt (non-current) | 5 | 7 | ||
Reclamation and remediation liabilities | 237 | 231 | ||
Deferred income tax liabilities | 88 | 85 | ||
Employee-related benefits | 292 | 283 | ||
Other non-current liabilities | 29 | 37 | ||
Total liabilities | 5,771 | 6,488 | ||
Equity | ||||
Newmont stockholders' equity | 6,786 | 10,493 | ||
Total equity (Note 18) | 6,786 | 10,493 | ||
Total liabilities and equity | 12,557 | 16,981 | ||
Reportable Legal Entities | Other Subsidiaries | ||||
Assets | ||||
Cash and cash equivalents | 2,901 | 1,601 | $ 1,543 | $ 1,306 |
Trade receivables | 280 | 229 | ||
Other accounts receivables | 193 | 185 | ||
Intercompany receivable | 10,486 | 8,101 | ||
Investments | 46 | 19 | ||
Inventories | 584 | 552 | ||
Stockpiles and ore on leach pads | 693 | 695 | ||
Other current assets | 116 | 78 | ||
Current assets | 15,299 | 11,460 | ||
Property, plant and mine development, net | 11,077 | 11,136 | ||
Investments | 222 | 387 | ||
Investments in subsidiaries | 2,820 | |||
Stockpiles and ore on leach pads | 2,344 | 2,379 | ||
Deferred income tax assets | 1,177 | 1,228 | ||
Non-current intercompany receivable | 112 | 108 | ||
Other non-current assets | 512 | 477 | ||
Total assets | 30,743 | 29,995 | ||
Liabilities | ||||
Debt | 193 | 146 | ||
Accounts payable | 288 | 318 | ||
Intercompany payable | 11,704 | 8,517 | ||
Employee-related benefits | 126 | 157 | ||
Income and mining taxes | 121 | 38 | ||
Other current liabilities | 323 | 337 | ||
Current liabilities | 12,755 | 9,513 | ||
Debt (non-current) | 9 | 195 | ||
Reclamation and remediation liabilities | 1,598 | 1,569 | ||
Deferred income tax liabilities | 1,328 | 1,245 | ||
Employee-related benefits | 169 | 154 | ||
Non-current intercompany payable | 2,302 | 2,241 | ||
Other non-current liabilities | 332 | 273 | ||
Total liabilities | 18,493 | 15,190 | ||
Equity | ||||
Newmont stockholders' equity | 9,290 | 10,202 | ||
Noncontrolling interests | 2,960 | 4,603 | ||
Total equity (Note 18) | 12,250 | 14,805 | ||
Total liabilities and equity | 30,743 | 29,995 | ||
Eliminations | ||||
Assets | ||||
Intercompany receivable | (21,838) | (18,900) | ||
Current assets | (21,838) | (18,900) | ||
Property, plant and mine development, net | (38) | (38) | ||
Investments in subsidiaries | (16,076) | (22,356) | ||
Deferred income tax assets | (490) | (490) | ||
Non-current intercompany receivable | (2,347) | (2,284) | ||
Total assets | (40,789) | (44,068) | ||
Liabilities | ||||
Intercompany payable | (21,838) | (18,900) | ||
Current liabilities | (21,838) | (18,900) | ||
Deferred income tax liabilities | (490) | (490) | ||
Non-current intercompany payable | (2,385) | (2,322) | ||
Total liabilities | (24,713) | (21,712) | ||
Equity | ||||
Newmont stockholders' equity | (16,076) | (20,695) | ||
Noncontrolling interests | (1,661) | |||
Total equity (Note 18) | (16,076) | (22,356) | ||
Total liabilities and equity | $ (40,789) | $ (44,068) |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Environmental Matters (Details) - USD ($) $ in Millions | 1 Months Ended | |||
Dec. 31, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2014 | |
Accrual for future reclamation costs | ||||
Asset retirement obligation | $ 1,553 | $ 1,593 | $ 1,547 | $ 1,497 |
Environmental remediation obligations | $ 318 | 311 | $ 170 | $ 192 |
Minera Yanacocha S.R.L. | ||||
Accrual for future reclamation costs | ||||
Modification period | 1 year | |||
Compliance period | 4 years | |||
Other current liabilities | ||||
Accrual for future reclamation costs | ||||
Reclamation obligation, current | $ 37 | $ 35 | ||
Reclamation and remediation liabilities | ||||
Accrual for future reclamation costs | ||||
Range of reclamation and remediation liabilities upper limit | 41.00% | |||
Range of reclamation and remediation liabilities lower limit | 1.00% |
COMMITMENTS AND CONTINGENCIES95
COMMITMENTS AND CONTINGENCIES - Environmental Matters by Site (Details) - USD ($) $ in Millions | Jun. 05, 2007 | Apr. 30, 2015 | Apr. 30, 2014 | Jul. 31, 2012 | Jun. 30, 2016 | Dec. 31, 2015 | Jun. 30, 2015 | Dec. 31, 2014 | Dec. 31, 2012 |
Loss contingencies | |||||||||
Environmental remediation obligations | $ 311 | $ 318 | $ 170 | $ 192 | |||||
Newmont USA Limited | Environmental remediation | Ross-Adams Mine Site | |||||||||
Loss contingencies | |||||||||
Damages sought | $ 0.3 | ||||||||
Newmont USA Limited | |||||||||
Loss contingencies | |||||||||
Percent ownership held by Newmont | 100.00% | ||||||||
Dawn Mining Company | |||||||||
Loss contingencies | |||||||||
Percent ownership held by Newmont | 51.00% | ||||||||
Dawn Mining Company | Environmental remediation | Midnite Mine | |||||||||
Loss contingencies | |||||||||
Department of Interior contribution for past and future cleanup costs | $ 42 | ||||||||
Expected remediation design completion, first phase percentage | 30.00% | ||||||||
Expected remediation design completion, second phase percentage | 60.00% | ||||||||
Expected remediation design completion, reasonaby certain threshold as a percent) | 90.00% | ||||||||
Environmental remediation obligations | $ 215 |
COMMITMENTS AND CONTINGENCIES96
COMMITMENTS AND CONTINGENCIES - Other Legal Matters (Details) $ in Millions | 1 Months Ended | ||||||
Apr. 30, 2008plaintiff | May 31, 2002plaintiff | Aug. 31, 2000PEN | Aug. 31, 2000USD ($) | Jun. 30, 2000communitykg | Jun. 30, 2016plaintiff | Dec. 31, 2011complaint | |
Newmont Mining Corporation | Minera Yanacocha S.R.L. | |||||||
Loss contingencies | |||||||
Newmont equity interest ownership (as a percent) | 51.35% | ||||||
Minera Yanacocha S.R.L. | South America | Choropampa | |||||||
Loss contingencies | |||||||
Elemental mercury spilled (in kilograms) | kg | 151 | ||||||
Minera Yanacocha S.R.L. | South America | Environmental remediation | Choropampa | |||||||
Loss contingencies | |||||||
Fine paid under protest for spill of elementary mercury | PEN 1,740,000 | $ 0.5 | |||||
Number of communities impacted by incident | community | 3 | ||||||
Minera Yanacocha S.R.L. | South America | Environmental remediation | Cajamarca, Peru local courts | Choropampa | |||||||
Loss contingencies | |||||||
Remaining plaintiffs in the Yanacocha matters | 200 | ||||||
Minera Yanacocha S.R.L. | South America | Environmental remediation | Cajamarca, Peru local courts | Settled Litigation | Minimum | Choropampa | |||||||
Loss contingencies | |||||||
Loss contingency number of plaintiffs | 900 | ||||||
Number of settlement agreements entered into by Yanacocha | 350 | ||||||
Minera Yanacocha S.R.L. | South America | Environmental remediation | Cajamarca, Peru local courts | Pending Litigation | Choropampa | |||||||
Loss contingencies | |||||||
Number of complaints to nullify settlements | complaint | 23 |
COMMITMENTS AND CONTINGENCIES97
COMMITMENTS AND CONTINGENCIES - Administrative Matters (Details) $ in Millions | 1 Months Ended | 6 Months Ended | 12 Months Ended |
Nov. 30, 2015USD ($)judgment | Jun. 30, 2016USD ($)item$ / item | Dec. 31, 2000USD ($) | |
Unfavorable Tax Ruling | Yanacocha Tax Dispute | Buenaventura and Minas Conga | Contractual right to conduct exploration | |||
Loss contingencies | |||
Intangible asset acquired | $ | $ 29 | ||
Number of rulings overturned | judgment | 2 | ||
Potential liability, including fines and interest | $ | $ 75 | ||
Unfavorable Tax Ruling | Yanacocha Tax Dispute | Buenaventura and Minas Conga | Contractual right to conduct exploration | Maximum | |||
Loss contingencies | |||
Intangible asset, useful life | 10 years | ||
South America | Minera Yanacocha S.R.L. | OEFA | Minimum | |||
Loss contingencies | |||
Number of units with alleged violations | item | 0 | ||
South America | Minera Yanacocha S.R.L. | OEFA | Maximum | |||
Loss contingencies | |||
Number of units with alleged violations | item | 40,372 | ||
South America | Minera Yanacocha S.R.L. | Water Authority | Minimum | |||
Loss contingencies | |||
Number of units with alleged violations | item | 0 | ||
South America | Minera Yanacocha S.R.L. | Water Authority | Maximum | |||
Loss contingencies | |||
Number of units with alleged violations | item | 20,000 | ||
South America | Minera Yanacocha S.R.L. | Environmental remediation | |||
Loss contingencies | |||
Potential fine for each unit alleged violations (in dollars per unit) | $ / item | 0.00118 | ||
South America | Minera Yanacocha S.R.L. | Environmental remediation | Minimum | |||
Loss contingencies | |||
Potential fine for alleged violations | $ | $ 0 | ||
South America | Minera Yanacocha S.R.L. | Environmental remediation | Maximum | |||
Loss contingencies | |||
Potential fine for alleged violations | $ | $ 71 |
COMMITMENTS AND CONTINGENCIES98
COMMITMENTS AND CONTINGENCIES - PT Newmont Nusa Tenggara (Details) - PTNNT | May 06, 2011 | Dec. 17, 2010 | Feb. 28, 2010 | Dec. 31, 2006 | Dec. 31, 2010 | Mar. 31, 2010 | Dec. 31, 2010 | Jun. 30, 2016 | Mar. 31, 2009 | Mar. 31, 2008 | Mar. 31, 2007 | Mar. 31, 2006 |
Newmont Mining Corporation | ||||||||||||
Loss contingencies | ||||||||||||
Newmont equity interest ownership (as a percent) | 31.50% | |||||||||||
Newmont Mining Corporation | Batu Hijau | Required divestiture | ||||||||||||
Loss contingencies | ||||||||||||
Interest to be offered (as a percent) | 3.00% | 7.00% | ||||||||||
Aggregate interest to be offered | 31.00% | |||||||||||
Newmont Mining Corporation | Batu Hijau | Required divestiture | Minimum | ||||||||||||
Loss contingencies | ||||||||||||
Percentage of ownership shares by the Indonesian government or Indonesian nationals in PTNNT | 51.00% | 44.00% | 37.00% | 30.00% | 23.00% | |||||||
Newmont Mining Corporation | Batu Hijau | Required divestiture | Ministry of Energy and Mineral Resources | ||||||||||||
Loss contingencies | ||||||||||||
Sale and transfer of shares of interest percent | 7.00% | |||||||||||
Newmont Mining Corporation | Batu Hijau | Required divestiture | PIP | ||||||||||||
Loss contingencies | ||||||||||||
Sale and transfer of shares of interest percent | 7.00% | |||||||||||
PTPI | ||||||||||||
Loss contingencies | ||||||||||||
Other company ownership percentage in affiliate | 20.00% | |||||||||||
PTMDB | Batu Hijau | Required divestiture | ||||||||||||
Loss contingencies | ||||||||||||
PTMDB's ownership in PTNNT | 24.00% |
COMMITMENTS AND CONTINGENCIES99
COMMITMENTS AND CONTINGENCIES - NWG Investments Inc v. Fronteer Gold Inc. (Details) $ in Millions, CAD in Billions | Feb. 26, 2014CAD | Sep. 24, 2012USD ($) | Apr. 08, 2008 | Sep. 30, 2007 |
North America | Pending Litigation | ||||
Loss contingencies | ||||
Uranium mining moratorium term | 3 years | |||
NWG Investments Inc. | NewWest Gold | ||||
Loss contingencies | ||||
Other company ownership percentage in affiliate | 86.00% | |||
NWG Investments Inc. | NWG Ontario Complaint | Pending Litigation | ||||
Loss contingencies | ||||
Damages sought | CAD | CAD 1.2 | |||
NWG Investments Inc. | North America | NWG New York Case | Pending Litigation | ||||
Loss contingencies | ||||
Damages sought | $ | $ 750 | |||
NWG Investments Inc. | Jacob Safra | ||||
Loss contingencies | ||||
Ownership interest held by majority shareholder of parent of acquiree entity | 100.00% | |||
Fronteer | Aurora | ||||
Loss contingencies | ||||
Ownership interest in Aurora Energy Resources Inc. held by Fronteer | 47.00% |
COMMITMENTS AND CONTINGENCIE100
COMMITMENTS AND CONTINGENCIES - Investigations (Details) - Compliance Review Investigations - USD ($) $ in Millions | 1 Months Ended | 6 Months Ended |
Mar. 31, 2016 | Jun. 30, 2016 | |
Investigations | ||
Agreement term | 1 year | |
Provision for loss | $ 0 |
COMMITMENTS AND CONTINGENCIE101
COMMITMENTS AND CONTINGENCIES - Royalty Obligations (Details) $ in Millions | Jun. 25, 2009USD ($)$ / oz | Jun. 30, 2010 | Jun. 30, 2016USD ($)location | Dec. 31, 2015USD ($) |
Corporate and other | Minimum Royalty Obligations | ||||
Minimum Royalty Obligations | ||||
Number of mines subject to minimum royalty obligations | location | 1 | |||
Remainder of 2016 | $ 28 | |||
2,017 | 30 | |||
2,018 | 30 | |||
2,019 | 33 | |||
2,020 | 35 | |||
Thereafter | 19 | |||
Boddington | ||||
Minimum Royalty Obligations | ||||
2,016 | 2 | |||
Boddington final interest acquired | 33.33% | |||
Acquisition price | $ 982 | |||
Boddington contingent consideration liability | $ 62 | 12 | $ 10 | |
Percentage of average operating margin | 50.00% | |||
Operating margin per ounce (in dollars per ounce) | $ / oz | 600 | |||
Contingent consideration payable as a percentage of gold sales | 33.30% | |||
Contingent consideration paid to date | 72 | |||
Contingent consideration cash paid | 0 | $ 0 | ||
Contingent consideration expected to be paid in next 12 months | 2 | |||
Contingent consideration range low | 0 | |||
Contingent consideration, high end of range | 28 | |||
Maximum | Boddington | ||||
Minimum Royalty Obligations | ||||
Boddington contingent consideration liability | $ 100 | $ 100 |
COMMITMENTS AND CONTINGENCIE102
COMMITMENTS AND CONTINGENCIES - Royalty Obligations Holt Property (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||
May 31, 2011 | Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Sliding scale royalty | ||||||
Loss (income) from discontinued operations | $ 27 | $ (9) | $ 53 | $ (17) | ||
Discontinued operations disposed of by sale | Holloway Mining Company | ||||||
Sliding scale royalty | ||||||
Loss (income) from discontinued operations | 27 | (9) | 53 | (17) | ||
Discontinued operations, income tax (expense) benefit | 12 | $ (4) | 23 | (8) | ||
Holt property royalty | Discontinued operations disposed of by sale | Holloway Mining Company | ||||||
Sliding scale royalty | ||||||
Holt royalty | 200 | 200 | $ 129 | |||
Royalty paid | 5 | $ 6 | ||||
Ontario Court of Appeal Ruling | Holt property royalty | Discontinued operations disposed of by sale | Holloway Mining Company | Newmont Canada | ||||||
Sliding scale royalty | ||||||
Sliding scale royalty, percentage of net smelter returns | 0.013% | |||||
Corporate and other | ||||||
Other commitments | ||||||
Letters of credit surety bonds and bank guarantees, outstanding | $ 2,164 | $ 2,164 | $ 2,060 |