Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2017 | Jul. 17, 2017 | |
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, 2017 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2,017 | |
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 | 533,271,501 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | ||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||
Sales | $ 1,875 | $ 1,669 | $ 3,534 | $ 3,131 | |
Costs and expenses | |||||
Costs applicable to sales (1) | [1] | 999 | 902 | 1,932 | 1,753 |
Depreciation and amortization | 308 | 281 | 601 | 557 | |
Reclamation and remediation (Note 5) | 44 | 21 | 74 | 42 | |
Exploration | 51 | 38 | 87 | 68 | |
Advanced projects, research and development | 32 | 44 | 58 | 71 | |
General and administrative | 58 | 62 | 113 | 115 | |
Other expense, net (Note 6) | 14 | 15 | 31 | 33 | |
Total costs and expenses | 1,506 | 1,363 | 2,896 | 2,639 | |
Other income (expense) | |||||
Other income, net (Note 7) | 31 | 1 | 22 | 97 | |
Interest expense, net | (64) | (66) | (131) | (140) | |
Total other income (expense) | (33) | (65) | (109) | (43) | |
Income (loss) before income and mining tax and other items | 336 | 241 | 529 | 449 | |
Income and mining tax benefit (expense) (Note 8) | (167) | (238) | (277) | (465) | |
Equity income (loss) of affiliates | (3) | (5) | (5) | (10) | |
Net income (loss) from continuing operations | 166 | (2) | 247 | (26) | |
Net income (loss) from discontinued operations, net of tax (Note 3) | (15) | 64 | (38) | 223 | |
Net income (loss) | 151 | 62 | 209 | 197 | |
Net loss (income) attributable to noncontrolling interests, net of tax | |||||
Continuing operations (Note 9) | 26 | 16 | 14 | 28 | |
Discontinued operations (Note 3) | (55) | (150) | |||
Net loss (income) attributable to noncontrolling interests, net of tax | 26 | (39) | 14 | (122) | |
Net income (loss) attributable to Newmont stockholders | 177 | 23 | 223 | 75 | |
Net income (loss) attributable to Newmont stockholders: | |||||
Continuing operations | 192 | 14 | 261 | 2 | |
Discontinued operations | (15) | 9 | (38) | 73 | |
Net income (loss) attributable to Newmont stockholders | $ 177 | $ 23 | $ 223 | $ 75 | |
Net income (loss) per common share, Basic (Note 10) | |||||
Continuing operations (in dollars per share) | $ 0.36 | $ 0.02 | $ 0.49 | ||
Discontinued operations (in dollars per share) | (0.03) | 0.02 | (0.07) | $ 0.14 | |
Income (loss) per common share, basic | 0.33 | 0.04 | 0.42 | 0.14 | |
Net income (loss) per common share, Diluted (Note 10) | |||||
Continuing operations (in dollars per share) | 0.36 | 0.02 | 0.49 | ||
Discontinued operations (in dollars per share) | (0.03) | 0.02 | (0.07) | 0.14 | |
Income (loss) per common share, diluted | 0.33 | 0.04 | 0.42 | 0.14 | |
Cash dividends declared per common share | $ 0.050 | $ 0.025 | $ 0.100 | $ 0.050 | |
[1] | Excludes Depreciation and amortization and Reclamation and remediation. |
CONDENSED CONSOLIDATED STATEME3
CONDENSED CONSOLIDATED STATEMENTS OF CONSOLIDATED COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
CONDENSED CONSOLIDATED STATEMENTS OF CONSOLIDATED COMPREHENSIVE INCOME (LOSS) | ||||
Net income (loss) | $ 151 | $ 62 | $ 209 | $ 197 |
Other comprehensive income (loss): | ||||
Change in marketable securities, net of $-, $-, $- and $- tax benefit (expense), respectively | (4) | 21 | (11) | (56) |
Foreign currency translation adjustments | 4 | 4 | 7 | |
Change in pension and other post-retirement benefits, net of $(1), $-, $(5) and $(2), tax benefit (expense), respectively | 3 | 4 | 9 | 7 |
Change in fair value of cash flow hedge instruments, net of $(3), $(7), $(7) and $(15) tax benefit (expense), respectively | 5 | 16 | 14 | 35 |
Other comprehensive income (loss) | 4 | 45 | 16 | (7) |
Comprehensive income (loss) | 155 | 107 | 225 | 190 |
Comprehensive income (loss) attributable to: | ||||
Newmont stockholders | 181 | 68 | 239 | 68 |
Noncontrolling interests | (26) | 39 | (14) | 122 |
Comprehensive income (loss) | $ 155 | $ 107 | $ 225 | $ 190 |
CONDENSED CONSOLIDATED STATEME4
CONDENSED CONSOLIDATED STATEMENTS OF CONSOLIDATED COMPREHENSIVE INCOME (LOSS) (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
CONDENSED CONSOLIDATED STATEMENTS OF CONSOLIDATED COMPREHENSIVE INCOME (LOSS) | ||||
Unrealized gain (loss) on marketable securities, tax benefit (expense) | ||||
Change in pension and other post-retirement benefits, tax benefit (expense) | (1) | (5) | (2) | |
Change in fair value of cash flow hedge instruments, tax benefit (expense) | $ (3) | $ (7) | $ (7) | $ (15) |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF CONSOLIDATED CASH FLOWS - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Operating activities: | ||
Net income (loss) | $ 209 | $ 197 |
Adjustments: | ||
Depreciation and amortization | 601 | 557 |
Stock-based compensation (Note 12) | 35 | 37 |
Reclamation and remediation | 70 | 40 |
Loss (income) from discontinued operations (Note 3) | 38 | (223) |
Deferred income taxes | 76 | 372 |
Gain on asset and investment sales, net | (16) | (104) |
Other operating adjustments and inventory write-downs | 150 | 180 |
Net change in operating assets and liabilities (Note 22) | (255) | (231) |
Net cash provided by (used in) operating activities of continuing operations | 908 | 825 |
Net cash provided by (used in) operating activities of discontinued operations (1) | (9) | 478 |
Net cash provided by (used in) operating activities | 899 | 1,303 |
Investing activities: | ||
Additions to property, plant and mine development | (363) | (563) |
Purchases of investments | (113) | (2) |
Proceeds from sales of investments | 19 | 184 |
Other | 11 | 4 |
Net cash provided by (used in) investing activities of continuing operations | (446) | (377) |
Net cash provided by (used in) investing activities of discontinued operations | (28) | |
Net cash provided by (used in) investing activities | (446) | (405) |
Financing activities: | ||
Distributions to noncontrolling interests | (80) | |
Dividends paid to common stockholders | (54) | (27) |
Funding from noncontrolling interests | 46 | 50 |
Payments for withholding of employee taxes related to stock-based compensation | (13) | (4) |
Repayment of debt | (3) | (501) |
Dividends paid to noncontrolling interests | (146) | |
Other | (3) | (1) |
Net cash provided by (used in) financing activities of continuing operations | (107) | (629) |
Net cash provided by (used in) financing activities of discontinued operations | (153) | |
Net cash provided by (used in) financing activities | (107) | (782) |
Effect of exchange rate changes on cash | 3 | 4 |
Net change in cash and cash equivalents | 349 | 120 |
Less net cash provided by (used in) Batu Hijau discontinued operations | 302 | |
Net change in cash and cash equivalents excluding cash and cash equivalents related to Batu Hijau discontinued operations | 349 | (182) |
Cash and cash equivalents at beginning of period | 2,756 | 2,363 |
Cash and cash equivalents at end of period | 3,105 | 2,181 |
PTNNT - Batu Hijau | Discontinued operations disposed of by sale | ||
Adjustments: | ||
Net cash provided by (used in) operating activities of discontinued operations (1) | (3) | |
Holt royalty obligation | Holloway Mining Company | Discontinued operations disposed of by sale | ||
Adjustments: | ||
Loss (income) from discontinued operations (Note 3) | 38 | 53 |
Net cash provided by (used in) operating activities of discontinued operations (1) | $ (6) | $ (5) |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
ASSETS | ||
Cash and cash equivalents | $ 3,105 | $ 2,756 |
Trade receivables | 158 | 127 |
Other accounts receivables | 179 | 216 |
Investments (Note 15) | 61 | 56 |
Inventories (Note 16) | 665 | 617 |
Stockpiles and ore on leach pads (Note 17) | 821 | 763 |
Other current assets | 109 | 142 |
Current assets | 5,098 | 4,677 |
Property, plant and mine development, net | 12,262 | 12,485 |
Investments (Note 15) | 306 | 227 |
Stockpiles and ore on leach pads (Note 17) | 1,781 | 1,864 |
Deferred income tax assets | 1,245 | 1,331 |
Other non-current assets | 450 | 447 |
Total assets | 21,142 | 21,031 |
LIABILITIES | ||
Debt (Note 18) | 577 | 566 |
Accounts payable | 304 | 320 |
Employee-related benefits | 223 | 304 |
Income and mining taxes payable | 127 | 153 |
Other current liabilities (Note 19) | 341 | 407 |
Current liabilities | 1,572 | 1,750 |
Debt (Note 18) | 4,046 | 4,049 |
Reclamation and remediation liabilities (Note 5) | 2,060 | 2,029 |
Deferred income tax liabilities | 614 | 592 |
Employee-related benefits | 434 | 411 |
Other non-current liabilities (Note 19) | 376 | 326 |
Total liabilities | 9,102 | 9,157 |
EQUITY | ||
Common stock | 853 | 849 |
Additional paid-in capital | 9,508 | 9,490 |
Accumulated other comprehensive income (loss) (Note 21) | (318) | (334) |
Retained earnings | 885 | 716 |
Newmont stockholders' equity | 10,928 | 10,721 |
Noncontrolling interests | 1,112 | 1,153 |
Total equity | 12,040 | 11,874 |
Total liabilities and equity | $ 21,142 | $ 21,031 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 6 Months Ended |
Jun. 30, 2017 | |
BASIS OF PRESENTATION | |
BASIS OF PRESENTATION | NOTE 1 BASIS OF PRESENTATIO 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, 2016 filed on February 21, 2017 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 November 2, 2016, Newmont completed the sale of its 48.5% economic interest in PT Newmont Nusa Tenggara (“PTNNT”), which operated the Batu Hijau copper and gold mine (“Batu Hijau”) in Indonesia (the “Batu Hijau Transaction”). As a result, Newmont presents Batu Hijau as a discontinued operation for all periods presented. Accordingly, (i) our Condensed Consolidated Statements of Operations and Cash Flows have been reclassified to present Batu Hijau as a discontinued operation for all periods presented and (ii) the amounts presented in these notes relate only to our continuing operations, unless otherwise noted. For additional information regarding our discontinued operations, see Note 3. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Jun. 30, 2017 | |
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 and copper. 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 on 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 particularly sensitive to the outlook for commodity prices. A decline in the Company’s price outlook from current levels could result in material impairment charges related to these assets. 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 Inventory In July 2015, Accounting Standard Update (“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. The Company records inventory at the lower of cost or net realizable value and the adoption of this guidance effective January 1, 2017, had no impact on the Consolidated Financial Statements or disclosures. Stock-based compensation I n 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 of cash payments related to tax withholdings on behalf of employees on the Consolidated Statements of Cash Flows. This update is effective in fiscal years, including interim periods, beginning after December 15, 2016. The Company adopted this guidance as of January 1, 2017, and reclassified $(4) from Net cash provided by (used in) operating activities of continuing operations to Net cash provided by (used in) financing activities of continuing operations for the six months ended June 30, 2016. Adoption of this guidance had no other impact on the Consolidated Financial Statements or disclosures. Business Combinations In January 2017, ASU No. 2017-01 was issued clarifying the definition of a business and providing additional guidance for determining whether transactions should be accounted for as acquisitions of assets or businesses. This update is effective in fiscal years, including interim periods, beginning after December 15, 2017, and early adoption is permitted. The new guidance is required to be applied on a prospective basis. Adoption of this guidance, effective April 1, 2017, had no impact on the Consolidated Financial Statements or disclosures. Goodwill In January 2017, ASU No. 2017-04 was issued, which removes step two from the goodwill impairment test. As a result, an entity should perform its annual goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount and should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value. This update is effective in fiscal years, including interim periods, beginning after December 15, 2019, and early adoption is permitted. Adoption of this guidance, effective April 1, 2017, had no impact on the Consolidated Financial Statements or disclosures. Recently Issued Accounting Pronouncements 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, May 2016 and December 2016 by ASU No. 2015-14, No. 2016-08, No. 2016-10, No. 2016-12 and No. 2016-20, respectively. The new guidance 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. The Company has performed an assessment of the revised guidance and the impacts on the Company’s Consolidated Financial Statements and disclosures. The Company has completed the review of all contracts and determined that the adoption of this guidance will primarily impact the timing of revenue recognition on certain concentrate contracts based on the Company’s determination of when control is transferred. Currently, revenue is recognized for these contracts based on varying contractual terms indicating when risk of loss and title have transferred to the buyer. Upon adoption, revenue related to concentrate sales will typically be recognized upon completion of loading the material for shipment to the customer and satisfaction of the Company’s significant performance obligations. The Company is finalizing the assessment and quantifying the impacts of changes on certain concentrate contracts. The Company furthered its evaluation of variable consideration for concentrate sales related to the variable nature of the price and metal quantity. Based on our current analysis, the estimate of revenue recognized for concentrates will remain unchanged as sales will initially be recorded on a provisional basis based on the forward prices for the estimated month of settlement and the Company’s estimated metal quantities delivered based on weighing and assay data. The Company believes changes in the underlying weight and metal content are not significant to the sale as a whole and therefore do not preclude the recognition of revenue upon transfer of control. Additionally, the Company completed its evaluation of the impacts of insurance and refining fee classification. Newmont has determined that insurance on the transportation of goods is not considered a separate performance obligation. Newmont has also determined that revenue will be recognized, net of treatment and refining charges when these payments are to customers. When these payments are to third parties, the charges will be recognized within Costs applicable to sales . This classification remains unchanged from current practice. The Company will adopt the new guidance effective January 1, 2018. The guidance may be applied retrospectively for all periods presented or retrospectively with the cumulative effect of initially applying the guidance recognized at the date of initial application. The Company currently anticipates adopting the guidance retrospectively with the cumulative effect of initially applying the amended guidance recognized at January 1, 2018. Results for reporting periods beginning after January 1, 2018, will be presented in the Consolidated Financial Statements under the new guidance, while prior period amounts will not be adjusted and continue to be reported under the guidance in effect for those periods. In the related disclosures, results for reporting periods beginning after January 1, 2018, will be presented under prior guidance along with prior period amounts for comparative purposes. 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 upon adoption, an entity should apply the amendments by means of a cumulative-effect adjustment to the balance sheet at the beginning of the first reporting period in which the guidance is effective. Early adoption is not permitted. The Company expects the updated guidance to result in a significant reclassification of unrealized gains and losses on equity investments from Accumulated other comprehensive income (loss) to Retained earnings in the Consolidated Balance Sheets upon adoption. 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. The Company expects to begin assessment of the new guidance during the second half of 2017 with impact analysis performed in 2018. The Company is currently evaluating this guidance and the impact it will have on the Consolidated Financial Statements and disclosures. This update is effective in fiscal years, including interim periods, beginning after December 15, 2018, and early adoption is permitted. The Company anticipates adopting the new guidance effective January 1, 2019. Statement of Cash Flows In August 2016, ASU No. 2016-15 was issued related to the statement of cash flows. This new guidance addresses eight specific cash flow issues with the objective of reducing the existing diversity in practice in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. This update is effective in fiscal years, including interim periods, beginning after December 15, 2017, 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. The Company anticipates adopting the new guidance effective January 1, 2018. Intra-Entity Transfers In October 2016, ASU No. 2016-16 was issued related to the intra-entity transfers of assets other than inventory. This new guidance requires entities to recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. This update is effective in fiscal years, including interim periods, beginning after December 15, 2017, 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. The Company anticipates adopting the new guidance effective January 1, 2018. Restricted Cash In November 2016, ASU No. 2016-18 was issued related to the inclusion of restricted cash in the statement of cash flows. This new guidance requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents and amounts generally described as restricted cash or restricted cash equivalents. This update is effective in fiscal years, including interim periods, beginning after December 15, 2017, and early adoption is permitted. The adoption of this guidance will result in the inclusion of the restricted cash balances within the overall cash balance and removal of the changes in restricted cash activity, which is currently recognized in Other within financing activities, on the Consolidated Statements of Cash Flows. Furthermore, the Company will be required to reconcile Cash and cash equivalents and restricted cash reported within the Consolidated Balance Sheets to the total shown in the Consolidated Statements of Cash Flows. The Company anticipates adopting this new guidance effective January 1, 2018, and does not expect it to have a material impact on the Consolidated Financial Statements or disclosures. Employee Benefits I n March 2017, ASU No. 2017-07 was issued related to the presentation of net periodic pension and postretirement cost. The new guidance requires the service cost component of net benefit costs be classified similar to other compensation costs arising from services rendered by employees. Other components of net benefit costs are required to be classified separately from the service cost and outside income from operations. This update is effective in fiscal years, including interim periods, beginning after December 15, 2017. The Company anticipates adopting this new guidance effective January 1, 2018. The adoption of this guidance will result in the recognition of other components of net benefit costs within Other income, net rather than Costs and expenses and will no longer be included in costs that benefit the inventory/production process. The adoption of this guidance is not expected to have a material impact on the Consolidated Financial Statements or disclosures. |
DISCONTINUED OPERATIONS
DISCONTINUED OPERATIONS | 6 Months Ended |
Jun. 30, 2017 | |
DISCONTINUED OPERATIONS | |
DISCONTINUED OPERATIONS | NOTE 3 DISCONTINUED OPERATIONS The details of our Net income (loss) from discontinued operations are set forth below: Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 Holt royalty obligation $ (15) $ (27) $ (38) $ (53) Batu Hijau operations — 91 — 276 Net income (loss) from discontinued operations $ (15) $ 64 $ (38) $ 223 The Batu Hijau Transaction On November 2, 2016, Newmont completed the sale of its 48.5% economic interest in PTNNT, which operated the Batu Hijau copper and gold mine, previously reported in the Asia Pacific segment (renamed as the Australia segment during the first quarter of 2017). Net income (loss) from discontinued operations in the Condensed Consolidated Statements of Operations that relates to Batu Hijau consists of the following: Three Months Ended Six Months Ended June 30, 2016 June 30, 2016 Sales $ 369 $ 939 Costs and expenses Costs applicable to sales (1) 157 387 Depreciation and amortization 33 79 Reclamation and remediation 5 9 Advanced projects, research and development — 1 General and administrative 2 6 Other expense (income), net 5 3 202 485 Interest expense, net (5) (10) Income (loss) before income and mining tax and other items 162 444 Income and mining tax benefit (expense) (71) (168) Net income (loss) from discontinued operations 91 276 Net loss (income) attributable to noncontrolling interests (55) (150) Net income (loss) from discontinued operations attributable to Newmont stockholders $ 36 $ 126 (1) Excludes Depreciation and amortization and Reclamation and remediation. The consolidated statements of comprehensive income (loss) were not impacted by discontinued operations as PTNNT did not have any other comprehensive income (loss). Cash flows from Batu Hijau consist of the following: Six Months Ended June 30, 2016 Net cash provided by (used in) operating activities $ 483 Net cash provided by (used in) investing activities (28) Net cash provided by (used in) financing activities (153) Net cash provided by (used in) Batu Hijau discontinued operations $ 302 The Holt Royalty Obligation Discontinued operations include a retained royalty obligation to Holloway Mining Company. Holloway Mining Company, which owned the Holt-McDermott property (“Holt”), was sold to St. Andrew Goldfields Ltd. (“St. Andrew”) in 2006. In January 2016, St. Andrew was acquired by Kirkland Lake Gold Ltd. At June 30, 2017 and December 31, 2016, the estimated fair value of the Holt royalty obligation was $240 and $187, respectively. Changes to the estimated fair value resulting from periodic revaluations are recorded to Net income (loss) from discontinued operations . During the three and six months ended June 30, 2017, the Company recorded a gain (loss) of $(15) and $(38), net of a tax benefit (expense) of $8 and $21, respectively. During the three and six months ended June 30, 2016, the Company recorded a gain (loss) of $(27) and $(53), net of tax benefit (expense) of $12 and $23, respectively. During the six months ended June 30, 2017 and 2016, the Company paid $6 and $5, respectively, related to the Holt royalty obligation. Refer to Note 13 for additional information on the Holt royalty obligation. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 6 Months Ended |
Jun. 30, 2017 | |
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, Australia 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 has 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. 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. Segment results for the prior period have been retrospectively revised to reflect the following changes: · On November 2, 2016, the Company sold the Batu Hijau mine that was previously included in Asia Pacific and presented Batu Hijau as a discontinued operation in the Company’s Condensed Consolidated Financial Statements. For additional information regarding our discontinued operations, see Note 3. · In the first quarter of 2017, the Company renamed its Asia Pacific reporting segment to Australia. Unless otherwise noted, the Company presents only the reportable segments of our continuing operations in the tables below. 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, 2017 Carlin $ 279 $ 170 $ 46 $ 5 $ 55 $ 48 Phoenix: Gold 67 46 12 Copper 24 16 4 Total Phoenix 91 62 16 3 9 4 Twin Creeks 156 61 17 2 72 9 Long Canyon 57 13 18 5 21 3 CC&V 166 74 33 3 53 4 Other North America — — 1 4 (5) 1 North America 749 380 131 22 205 69 Yanacocha 149 134 34 8 (60) 9 Merian 150 64 26 4 54 22 Other South America — — 3 9 (16) — South America 299 198 63 21 (22) 31 Boddington: Gold 262 147 29 Copper 52 28 6 Total Boddington 314 175 35 1 96 14 Tanami 123 58 15 6 55 28 Kalgoorlie 113 55 5 1 52 4 Other Australia — — 1 2 (5) 2 Australia 550 288 56 10 198 48 Ahafo 112 60 15 10 25 36 Akyem 165 73 40 5 45 6 Other Africa — — — 1 (4) — Africa 277 133 55 16 66 42 Corporate and Other — — 3 14 (111) 2 Consolidated $ 1,875 $ 999 $ 308 $ 83 $ 336 $ 192 (1) Includes an increase in accrued capital expenditures of $9; consolidated capital expenditures on a cash basis were $183. 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 $ 256 $ 184 $ 43 $ 4 $ 22 $ 43 Phoenix: Gold 62 39 12 Copper 22 22 7 Total Phoenix 84 61 19 1 3 3 Twin Creeks 144 58 13 2 70 14 Long Canyon — — — 7 (7) 37 CC&V 144 58 28 1 55 15 Other North America — — — 5 (6) 2 North America 628 361 103 20 137 114 Yanacocha 194 120 59 11 (19) 24 Merian — — — 11 (10) 60 Other South America — — 4 10 (14) — South America 194 120 63 32 (43) 84 Boddington: Gold 250 141 29 Copper 35 33 6 Total Boddington 285 174 35 — 75 12 Tanami 179 64 23 3 89 33 Kalgoorlie 122 67 4 2 49 5 Other Australia — — 2 2 (10) — Australia 586 305 64 7 203 50 Ahafo 115 60 17 7 30 22 Akyem 146 56 32 3 55 3 Other Africa — — — — (2) — Africa 261 116 49 10 83 25 Corporate and Other — — 2 13 (139) 2 Consolidated $ 1,669 $ 902 $ 281 $ 82 $ 241 $ 275 (1) Includes a decrease in accrued capital expenditures of $8; consolidated capital expenditures on a cash basis were $283. 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, 2017 Carlin $ 532 $ 363 $ 96 $ 8 $ 60 $ 96 Phoenix: Gold 120 89 23 Copper 50 34 9 Total Phoenix 170 123 32 4 7 10 Twin Creeks 249 108 30 4 103 17 Long Canyon 96 25 31 10 30 7 CC&V 312 144 62 7 96 8 Other North America — — 1 7 (10) 3 North America 1,359 763 252 40 286 141 Yanacocha 328 253 70 12 (52) 20 Merian 283 112 47 8 114 38 Other South America — — 7 19 (35) — South America 611 365 124 39 27 58 Boddington: Gold 490 269 55 Copper 97 49 10 Total Boddington 587 318 65 1 182 29 Tanami 215 108 31 9 75 52 Kalgoorlie 217 107 9 3 95 8 Other Australia — — 3 3 (20) 3 Australia 1,019 533 108 16 332 92 Ahafo 226 136 38 16 34 53 Akyem 319 135 74 6 100 12 Other Africa — — — 2 (5) — Africa 545 271 112 24 129 65 Corporate and Other — — 5 26 (245) 4 Consolidated $ 3,534 $ 1,932 $ 601 $ 145 $ 529 $ 360 (1) Includes a decrease in accrued capital expenditures of $3; consolidated capital expenditures on a cash basis were $363. 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 $ 502 $ 373 $ 92 $ 7 $ 24 $ 79 Phoenix: Gold 126 88 27 Copper 43 44 12 Total Phoenix 169 132 39 1 (8) 7 Twin Creeks 303 118 26 4 153 20 Long Canyon — — — 13 (13) 73 CC&V 209 91 46 4 65 36 Other North America — — — 6 (9) 2 North America 1,183 714 203 35 212 217 Yanacocha 405 248 128 20 (30) 38 Merian — — 1 14 (14) 142 Other South America — — 7 16 (25) — South America 405 248 136 50 (69) 180 Boddington: Gold 454 252 52 Copper 65 56 11 Total Boddington 519 308 63 — 139 23 Tanami 299 123 42 6 127 57 Kalgoorlie 228 132 9 3 82 8 Other Australia — — 6 3 (15) — Australia 1,046 563 120 12 333 88 Ahafo 216 117 32 12 50 39 Akyem 281 111 61 4 102 10 Other Africa — — — 1 (4) — Africa 497 228 93 17 148 49 Corporate and Other — — 5 25 (175) 4 Consolidated $ 3,131 $ 1,753 $ 557 $ 139 $ 449 $ 538 (1) Includes a decrease in accrued capital expenditures of $25; consolidated capital expenditures on a cash basis were $563. |
RECLAMATION AND REMEDIATION
RECLAMATION AND REMEDIATION | 6 Months Ended |
Jun. 30, 2017 | |
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 is conducting a comprehensive study of the current Yanacocha long-term mining and closure plans as part of the requirement to submit an updated closure plan to Peruvian regulators every five years. The revised closure plan will be submitted to Peruvian regulators in the second half of 2017. The revised closure plan may require the Company to provide additional reclamation bonding for Yanacocha. The Company’s Reclamation and remediation expense consisted of: Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 Reclamation $ 15 $ — $ 15 $ — Reclamation accretion 25 19 50 38 40 19 65 38 Remediation 2 1 6 2 Remediation accretion 2 1 3 2 4 2 9 4 $ 44 $ 21 $ 74 $ 42 Reclamation expense increased by $21 and $27 during the three and six months ended June 30, 2017, respectively, compared to the same periods in 2016, primarily due to updated reclamation liability assumptions at Yanacocha regarding water treatment costs on non-operating leach pads and higher reclamation accretion from an increase in Reclamation and remediation liabilities associated with revisions to Yanacocha’s long-term mining and closure plans in December 2016. The following are reconciliations of Reclamation and remediation liabilities : 2017 2016 Reclamation balance at January 1, $ 1,792 $ 1,300 Additions, changes in estimates and other 15 2 Payments and other (11) (6) Accretion expense 50 38 Reclamation balance at June 30, $ 1,846 $ 1,334 2017 2016 Remediation balance at January 1, $ 298 $ 318 Additions, changes in estimates and other 3 1 Payments and other (21) (10) Accretion expense 3 2 Remediation balance at June 30, $ 283 $ 311 The current portion of reclamation liabilities was $37 and $28 at June 30, 2017 and December 31, 2016, respectively, and was included in Other current liabilities . The current portion of remediation liabilities was $32 and $33 at June 30, 2017 and December 31, 2016, respectively, and was included in Other current liabilities . At June 30, 2017 and December 31, 2016, $1,846 and $1,792, respectively, were accrued for reclamation obligations relating to operating properties. In addition, the Company is involved in several matters concerning environmental remediation 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, 2017 and December 31, 2016, $283 and $298, respectively, were accrued for such environmental remediation obligations. Non-current restricted assets held for purposes of settling reclamation and remediation obligations were $65 and $66 at June 30, 2017 and December 31, 2016, respectively. Of the amounts at June 30, 2017, $43 was related to the Midnite Mine in Washington State, $14 was related to the Ahafo and Akyem mines in Ghana, Africa and $8 was related to the Con mine in Yellowknife, NWT, Canada. Of the amount at December 31, 2016, $43 was related to the Midnite Mine, $14 was related to the Ahafo and Akyem mines and $9 was related to the Con mine. Included in Investments at June 30, 2017 and December 31, 2016, 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 North America. Refer to Note 24 for further discussion of reclamation and remediation matters. |
OTHER EXPENSE, NET
OTHER EXPENSE, NET | 6 Months Ended |
Jun. 30, 2017 | |
OTHER EXPENSE, NET | |
OTHER EXPENSE, NET | NOTE 6 OTHER EXPENSE, NET Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 Restructuring and other $ 1 $ 6 $ 8 $ 19 Acquisition costs 3 2 5 2 Impairment of long-lived assets — 4 3 4 Other 10 3 15 8 $ 14 $ 15 $ 31 $ 33 |
OTHER INCOME, NET
OTHER INCOME, NET | 6 Months Ended |
Jun. 30, 2017 | |
OTHER INCOME, NET. | |
OTHER INCOME, NET | NOTE 7 OTHER INCOME, NET Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 Foreign currency exchange, net $ (4) $ (4) $ (21) $ (20) Gain on asset and investment sales, net 14 — 16 104 Tanami insurance proceeds 13 — 13 — Other 8 5 14 13 $ 31 $ 1 $ 22 $ 97 In March 2016, the Company sold its investment in Regis Resources Ltd. (“Regis”) for $184, resulting in a pre-tax gain of $103. The cost of the investment sold was determined using the specific identification method. In June 2017, the Company exchanged its interest in the Fort á la Corne joint venture for equity ownership in Shore Gold Inc. (“Shore Gold”), resulting in a pre-tax gain of $15. For additional information regarding this transaction, see Note 15. In June 2017, the Company recorded business interruption insurance proceeds of $13 associated with the heavy rainfall at Tanami during the first quarter of 2017. |
INCOME AND MINING TAXES
INCOME AND MINING TAXES | 6 Months Ended |
Jun. 30, 2017 | |
INCOME AND MINING TAXES | |
INCOME AND MINING TAXES | NOTE 8 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, 2017 2016 2017 2016 Income (loss) before income and mining tax and other items $ 336 $ 241 $ 529 $ 449 Tax at statutory rate % $ 118 35 % $ 84 35 % $ 185 35 % $ 157 Reconciling items: Percentage depletion (13) (42) 45 109 (14) (74) (4) (17) Change in valuation allowance on deferred tax assets 21 72 42 101 26 139 74 333 Mining and other taxes 5 16 (20) (47) 7 35 5 24 Tax impact on sale of assets (1) (5) — — (1) (5) (7) (35) Other 3 8 (3) (9) (1) (3) 1 3 Income and mining tax expense 50 % $ 167 99 % $ 238 52 % $ 277 104 % $ 465 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 an audit of its historic income tax filings and in connection with such audits, 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. 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. Due to procedural requirements, the Company paid half of the assessment in the third quarter. 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 $10 to $15 in the next 12 months. |
NET INCOME (LOSS) ATTRIBUTABLE
NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS FROM CONTINUING OPERATIONS | 6 Months Ended |
Jun. 30, 2017 | |
NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS FROM CONTINUING OPERATIONS | |
NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS FROM CONTINUING OPERATIONS | NOTE 9 NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS FROM CONTINUING OPERATIONS Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 Yanacocha $ (38) $ (13) $ (39) $ (24) Merian 12 (3) 26 (4) Other — — (1) — $ (26) $ (16) $ (14) $ (28) 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 Minera Yanacocha S.R.L. in its Condensed Consolidated Financial Statements due to a majority voting interest. Newmont has a 75.0% economic interest in Suriname Gold Project C.V. (“Merian”), with the remaining interests held by Staatsolie Maatschappij Suriname N.V. (“Staatsolie”), a company wholly owned by the Republic of Suriname. Newmont consolidates Merian, through its wholly-owned subsidiary, Newmont Suriname LLC., in its Condensed Consolidated Financial Statements as the primary beneficiary in the variable interest entity. Merian reached commercial production on October 1, 2016. The following summarizes the assets and liabilities of Merian (including noncontrolling interests). At June 30, At December 31, 2017 2016 Current assets: Cash and cash equivalents $ 20 $ 50 Inventories 64 57 Stockpiles and ore on leach pads 7 23 Other current assets (1) 35 37 126 167 Non-current assets: Property, plant and mine development, net 741 746 Other non-current assets (2) 23 8 Total assets $ 890 $ 921 Current liabilities: Other current liabilities (3) $ 38 $ 43 38 43 Non-current liabilities: Reclamation and remediation liabilities 12 11 Total liabilities $ 50 $ 54 (1) Other current assets include other accounts receivables, prepaid assets and other current assets. (2) Other non-current assets include intangibles, stockpiles and ore on leach pads. (3) Other current liabilities include accounts payable, employee-related benefits and other current liabilities. |
INCOME (LOSS) PER COMMON SHARE
INCOME (LOSS) PER COMMON SHARE | 6 Months Ended |
Jun. 30, 2017 | |
INCOME (LOSS) PER COMMON SHARE | |
INCOME (LOSS) PER COMMON SHARE | NOTE 10 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, 2017 2016 2017 2016 Net income (loss) attributable to Newmont stockholders: Continuing operations $ 192 $ 14 $ 261 $ 2 Discontinued operations (15) 9 (38) 73 $ 177 $ 23 $ 223 $ 75 Weighted average common shares (millions): Basic 533 531 533 530 Effect of employee stock-based awards 2 2 1 2 Diluted 535 533 534 532 Net income (loss) per common share attributable to Newmont stockholders: Basic: Continuing operations $ 0.36 $ 0.02 $ 0.49 $ — Discontinued operations (0.03) 0.02 (0.07) 0.14 $ 0.33 $ 0.04 $ 0.42 $ 0.14 Diluted: Continuing operations $ 0.36 $ 0.02 $ 0.49 $ — Discontinued operations (0.03) 0.02 (0.07) 0.14 $ 0.33 $ 0.04 $ 0.42 $ 0.14 Employee stock options to purchase 1 million and 2 million shares of common stock at weighted average exercise prices of $51.85 and $51.00 were outstanding at June 30, 2017 and 2016, 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. |
EMPLOYEE PENSION AND OTHER BENE
EMPLOYEE PENSION AND OTHER BENEFIT PLANS | 6 Months Ended |
Jun. 30, 2017 | |
EMPLOYEE PENSION AND OTHER BENEFIT PLANS | |
EMPLOYEE PENSION AND OTHER BENEFIT PLANS | NOTE 11 EMPLOYEE PENSION AND OTHER BENEFIT PLANS Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 Pension benefit costs, net: Service cost $ 8 $ 8 $ 15 $ 15 Interest cost 11 12 22 23 Expected return on plan assets (16) (15) (31) (29) Amortization, net 7 6 14 12 Settlements — — 4 — $ 10 $ 11 $ 24 $ 21 Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 Other benefit costs, net: Service cost $ 1 $ 1 $ 1 $ 1 Interest cost 1 1 2 2 Amortization, net (3) (2) (4) (3) $ (1) $ — $ (1) $ — |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 6 Months Ended |
Jun. 30, 2017 | |
STOCK-BASED COMPENSATION | |
STOCK BASED COMPENSATION | NOTE 12 STOCK-BASED COMPENSATION Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 Stock-based compensation: Performance leveraged stock units $ 9 $ 11 $ 17 $ 19 Restricted stock units 10 9 17 15 Strategic stock units — 1 1 3 $ 19 $ 21 $ 35 $ 37 |
FAIR VALUE ACCOUNTING
FAIR VALUE ACCOUNTING | 6 Months Ended |
Jun. 30, 2017 | |
FAIR VALUE ACCOUNTING | |
FAIR VALUE ACCOUNTING | NOTE 13 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 Level 2 Level 3 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, 2017 Total Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 3,105 $ 3,105 $ — $ — Restricted assets 68 68 — — Marketable equity securities: Extractive industries 174 174 — — Other 22 22 — — Trade receivable from provisional copper and gold concentrate sales, net 151 151 — — Batu Hijau contingent consideration 13 — — 13 $ 3,533 $ 3,520 $ — $ 13 Liabilities: Debt (1) $ 5,159 $ — $ 5,159 $ — Derivative instruments, net: Foreign exchange forward contracts 8 — 8 — Diesel forward contracts 3 — 3 — Boddington contingent consideration 13 — — 13 Holt royalty obligation 240 — — 240 $ 5,423 $ — $ 5,170 $ 253 Fair Value at December 31, 2016 Total Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 2,756 $ 2,756 $ — $ — Restricted assets 68 68 — — Marketable equity securities: Extractive industries 60 60 — — Other 16 16 — — Marketable debt securities: Asset backed commercial paper 18 — — 18 Trade receivable from provisional copper and gold concentrate sales, net 113 113 — — Batu Hijau contingent consideration 13 — — 13 $ 3,044 $ 3,013 $ — $ 31 Liabilities: Debt (1) $ 4,882 $ — $ 4,882 $ — Derivative instruments, net: Foreign exchange forward contracts 24 — 24 — Boddington contingent consideration 14 — — 14 Holt royalty obligation 187 — — 187 $ 5,107 $ — $ 4,906 $ 201 (1) Debt, exclusive of capital leases, is carried at amortized cost. The outstanding carrying value was $4,608 and $4,599 at June 30, 2017 and December 31, 2016, respectively. The fair value measurement of debt was based on an independent third party pricing source. 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 14. 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 restricted assets, which include cash and cash equivalents and marketable securities, are classified within Level 1 of the fair value hierarchy because they are valued using quoted market prices. Restricted assets 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 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 estimated value of the Batu Hijau contingent consideration was determined using (i) a discounted cash flow model, (ii) a Monte Carlo valuation model to simulate future copper prices using the Company’s long-term copper price, and (iii) estimated production and/or development dates for Batu Hijau Phase 7 and the Elang projects in Indonesia. The contingent consideration is classified within Level 3 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 (i) a discounted cash flow model, (ii) a Monte Carlo valuation model to simulate future gold and copper prices, using the Company’s long-term gold and copper prices, and (iii) a 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 $84 has been paid to date. The contingent royalty is classified within Level 3 of the fair value hierarchy. The estimated fair value of the Holt royalty obligation 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 royalty obligation is classified within Level 3 of the fair value hierarchy. The Company’s marketable debt securities included investments in auction rate securities and asset backed commercial paper. The Company reviewed the fair value of the auction rate securities and asset backed commercial paper on a quarterly basis prior to the investments being redeemed in November 2016 and January 2017, respectively. The marketable debt securities were traded in markets that were not active, traded infrequently and had little price transparency. Therefore, the investments were classified as 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, 2017 and December 31, 2016: At June 30, Range/Weighted Description 2017 Valuation technique Unobservable input average Batu Hijau contingent consideration $ 13 Monte Carlo Discount rate 17.10 % Short-term copper price $ Long-term copper price $ Boddington contingent consideration $ 13 Monte Carlo Discount rate 2.97 % Short-term gold price $ 1,257 Long-term gold price $ 1,300 Short-term copper price $ Long-term copper price $ Long-term Australian to U.S. dollar exchange rate $ Holt royalty obligation $ 240 Monte Carlo Discount rate 3.01 % Short-term gold price $ 1,257 Long-term gold price $ 1,300 Gold production scenarios (in 000's of ounces) 438 - 1,814 At December 31, Range/Weighted Description 2016 Valuation technique Unobservable input average Asset backed commercial paper $ 18 Risk-adjusted indicative price Recoverability rate 97 % Batu Hijau contingent consideration $ 13 Monte Carlo Discount rate 17.10 % Short-term copper price $ 2.39 Long-term copper price $ 3.00 Boddington contingent consideration $ 14 Monte Carlo Discount rate 3.36 % Short-term gold price $ 1,221 Long-term gold price $ 1,300 Short-term copper price $ 2.39 Long-term copper price $ 3.00 Long-term Australian to U.S. dollar exchange rate $ 0.80 Holt royalty obligation $ 187 Monte Carlo Discount rate 3.36 % Short-term gold price $ 1,221 Long-term gold price $ 1,300 Gold production scenarios (in 000's of ounces) 332 - 1,570 The following tables set forth a summary of changes in the fair value of the Company’s Level 3 financial assets and liabilities: Asset Backed Batu Hijau Boddington Holt Commercial Contingent Total Contingent Royalty Total Paper (1) Consideration (2) Assets Consideration (3) Obligation (2) Liabilities Fair value at December 31, 2016 $ 18 $ 13 $ 31 $ 14 $ 187 $ 201 Settlements (18) — (18) (6) (6) (12) Revaluation — — — 5 59 64 Fair value at June 30, 2017 $ — $ 13 $ 13 $ 13 $ 240 $ 253 Asset Auction Backed Boddington Holt Rate Commercial Total Contingent Royalty Total Securities (1) Paper (1) Assets Consideration (3) Obligation (2) Liabilities Fair value at December 31, 2015 $ 7 $ 18 $ 25 $ 10 $ 129 $ 139 Settlements — — — — (5) (5) Revaluation — 2 2 2 76 78 Fair value at June 30, 2016 $ 7 $ 20 $ 27 $ 12 $ 200 $ 212 (1) The gain (loss) recognized is included in Other comprehensive income (loss) . (2) The gain (loss) recognized is included in Net income (loss) from discontinued operations . (3) The gain (loss) recognized is included in Other expense, net. . |
DERIVATIVE INSTRUMENTS
DERIVATIVE INSTRUMENTS | 6 Months Ended |
Jun. 30, 2017 | |
DERIVATIVE INSTRUMENTS | |
DERIVATIVE INSTRUMENTS | NOTE 14 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. Cash Flow Hedges The following foreign currency and diesel contracts were transacted for risk management purposes and qualify as cash flow hedges. 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 Australia outstanding at June 30, 2017: Expected Maturity Date 2017 2018 Total/Average A$ Operating Fixed Forward Contracts: A$ notional (millions) 46 6 52 Average rate ($/A$) 0.93 0.92 0.93 Expected hedge ratio 7 % 4 % Newmont utilizes foreign currency contracts to reduce the variability of the U.S. dollar amount of forecasted foreign currency expenditures caused by changes in exchange rates. The A$ hedges run through the first quarter of 2018. Diesel Fixed Forward Contracts The Company had the following diesel derivative contracts in Nevada, within North America, outstanding at June 30, 2017: Expected Maturity Date 2017 2018 Total/Average Diesel Fixed Forward Contracts: Diesel gallons (millions) 12 9 21 Average rate ($/gallon) 1.58 1.60 1.59 Expected hedge ratio 54 % 22 % Newmont hedges a portion of its operating cost exposure related to diesel consumed at its Nevada operations to reduce the variability in diesel prices. The hedging instruments consist of a series of financially settled fixed forward contracts, which run through the fourth quarter of 2018. Derivative Instrument Fair Values The Company had the following derivative instruments designated as hedges at June 30, 2017 and December 31, 2016: Fair Values of Derivative Instruments At June 30, 2017 Other Other Other Other Current Non-current Current Non-current Assets Assets Liabilities Liabilities Foreign currency exchange contracts: A$ operating fixed forwards $ — $ — $ 8 $ — Diesel fixed forwards — — 3 — Total derivative instruments $ — $ — $ 11 $ — Fair Values of Derivative Instruments At December 31, 2016 Other Other Other Other Current Non-current Current Non-current Assets Assets Liabilities Liabilities Foreign currency exchange contracts: A$ operating fixed forwards $ — $ — $ 23 $ 1 Diesel fixed forwards 4 — 4 — Total derivative instruments $ 4 $ — $ 27 $ 1 As of June 30, 2017 and December 31, 2016, all hedging 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, 2017 and December 31, 2016, the potential effect of netting derivative assets against liabilities due to the master netting agreement was not significant. 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 2017 2016 2017 2016 2017 2016 For the three months ended June 30, Cash flow hedging relationships: Gain (loss) recognized in Other comprehensive income (loss) (effective portion) $ — $ (3) $ (3) $ 7 $ — $ — Gain (loss) reclassified from Accumulated other comprehensive income (loss) into income (loss) (effective portion) (1) $ (7) $ (10) $ (1) $ (5) $ (3) $ (5) Gain (loss) reclassified from Accumulated other comprehensive income (loss) into income (loss) (ineffective portion) (2) $ — $ — $ — $ 1 $ — $ — For the six months ended June 30, Cash flow hedging relationships: Gain (loss) recognized in Other comprehensive income (loss) (effective portion) $ 4 $ 4 $ (6) $ 5 $ — $ — Gain (loss) reclassified from Accumulated other comprehensive income (loss) into income (loss) (effective portion) (1) $ (15) $ (20) $ (3) $ (14) $ (5) $ (8) Gain (loss) reclassified from Accumulated other comprehensive income (loss) into income (loss) (ineffective portion) (2) $ — $ — $ — $ 1 $ — $ — (1) The gain (loss) recognized for the effective portion of cash flow hedges is included in Costs 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, 2017, 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 $16. Batu Hijau Contingent Consideration Consideration received by the Company in conjunction with the sale of PTNNT included the Contingent Payment and the Elang Development deferred payment deeds, which were determined to be financial instruments that met the definition of a derivative, but do not qualify for hedge accounting, under ASC 815. See Note 13 for additional information. Contingent consideration of $13 was included in Other non-current assets in the Company's Consolidated Balance Sheets as of June 30, 2017 and December 31, 2016. There was no change in the value of the contingent consideration during the three or six months ended June 30, 2017. 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, 2017, Newmont had gold and copper sales of 92,000 ounces and 24 million pounds priced at an average of $1,244 per ounce and $2.68 per pound, respectively, subject to final pricing over the next several months. |
INVESTMENTS
INVESTMENTS | 6 Months Ended |
Jun. 30, 2017 | |
INVESTMENTS | |
INVESTMENTS | NOTE 15 INVESTMENTS At June 30, 2017 Cost/Equity Unrealized Fair/Equity Basis Gain Loss Basis Current: Marketable equity securities $ 48 $ 19 $ (6) $ 61 Non-current: Marketable equity securities: Continental Gold Inc. $ 109 $ 1 $ — $ 110 Other marketable equity securities 23 3 (1) 25 132 4 (1) 135 Other investments, at cost 7 — — 7 Equity method investments: TMAC Resources Inc. (28.80%) 104 — — 104 Minera La Zanja S.R.L. (46.94%) 54 — — 54 Euronimba Ltd. (43.50%) 6 — — 6 164 — — 164 $ 303 $ 4 $ (1) $ 306 At December 31, 2016 Cost/Equity Unrealized Fair/Equity Basis Gain Loss Basis Current: Marketable equity securities $ 33 $ 27 $ (4) $ 56 Non-current: Marketable debt securities: Asset backed commercial paper $ 16 $ 2 $ — $ 18 Marketable equity securities 18 2 — 20 Other investments, at cost 6 — — 6 Equity method investments: TMAC Resources Inc. (29.00%) 108 — — 108 Minera La Zanja S.R.L. (46.94%) 71 — — 71 Euronimba Ltd. (43.50%) 4 — — 4 183 — — 183 $ 223 $ 4 $ — $ 227 In June 2017, Newmont exchanged its 31% interest in the Fort á la Corne joint venture in consideration for 54 million common shares and 1 million common share warrants in Shore Gold, valued at $15. Following the transaction, Newmont held a 19.9% equity ownership in Shore Gold. This investment has been classified as current. In May 2017, Newmont purchased 37 million common shares of Continental Gold Inc. (“Continental”) at C$4.00 per share. Continental is developing the high-grade Buriticá gold project in Colombia. Total consideration paid by Newmont was $109 for a 19.9% equity ownership in Continental. In April 2017, Newmont purchased 13 million units (one common share and one warrant per unit) of Goldstrike Resources Ltd. (“Goldstrike”) at a price of C$0.47 per share for $4. The investment secures rights to explore and develop the Plateau property located in a highly prospective mineralized trend in Canada’s Yukon Territory with Goldstrike, with the ability to earn additional ownership in the project through exploration investment. This investment has been classified as non-current. In January 2017, the Company’s remaining asset backed commercial paper was called at par resulting in no realized gain or loss. There were no investment impairments for other-than-temporary declines in value or significant changes in fair value on those available-for-sale securities previously impaired during the three and six months ended June 30, 2017 . During the three and six months ended June 30, 2016, the Company recognized no investment impairments for other-than-temporary declines in value. During the three months ended June 30, 2016, there was a $17 increase in the fair value of available-for-sale securities previously impaired, primarily due to an $11 increase in Gabriel Resources Ltd. and a $3 increase in Pilot Gold. During the six months ended June 30, 2016, there was a $60 decrease in the fair value of available-for-sale securities previously impaired, primarily due to an $83 decrease in Regis, which was sold in March 2016. |
INVENTORIES
INVENTORIES | 6 Months Ended |
Jun. 30, 2017 | |
Inventories | |
INVENTORIES | |
INVENTORIES | NOTE 16 INVENTORIES At June 30, At December 31, 2017 2016 Materials and supplies $ 410 $ 391 In-process 139 130 Concentrate and copper cathode 83 67 Precious metals 33 29 $ 665 $ 617 |
STOCKPILES AND ORE ON LEACH PAD
STOCKPILES AND ORE ON LEACH PADS | 6 Months Ended |
Jun. 30, 2017 | |
Stockpiles and ore on leach pads | |
STOCKPILES AND ORE ON LEACH PADS | |
STOCKPILES AND ORE ON LEACH PADS | NOTE 17 STOCKPILES AND ORE ON LEACH PADS At June 30, At December 31, 2017 2016 Current: Stockpiles $ 409 $ 393 Ore on leach pads 412 370 $ 821 $ 763 Non-current: Stockpiles $ 1,454 $ 1,506 Ore on leach pads 327 358 $ 1,781 $ 1,864 At June 30, At December 31, 2017 2016 Stockpiles and ore on leach pads: Carlin $ 463 $ 421 Phoenix 71 80 Twin Creeks 338 328 Long Canyon 37 9 CC&V 331 369 Yanacocha 309 367 Merian 26 27 Boddington 408 394 Tanami 14 19 Kalgoorlie 120 113 Ahafo 392 386 Akyem 93 114 $ 2,602 $ 2,627 During the three and six months ended June 30, 2017, the Company recorded write-downs of $46 and $86, respectively, classified as components of Costs applicable to sales, and write-downs of $18 and $31, 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 primarily a result of stripping campaigns driving lower grade and lower recovery resulting in higher costs per unit in North America, higher future processing costs from leach pads in South America and lower grades in Africa. Of the write-downs during the three months ended June 30, 2017, $11 is related to Carlin, $13 to Twin Creeks , $32 to Yanacocha and $8 to Akyem. Of the write-downs during the six months ended June 30, 2017, $34 is related to Carlin, $16 to Twin Creeks , $41 to Yanacocha, $18 to Ahafo and $8 to 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 was related to Carlin, $10 to Twin Creeks and $42 to Yanacocha. Of the write-downs during the six months ended June 30, 2016, $58 was related to Carlin, $12 to Twin Creeks and $87 to Yanacocha. |
DEBT
DEBT | 6 Months Ended |
Jun. 30, 2017 | |
DEBT | |
DEBT | NOTE 18 DEBT The only scheduled minimum debt repayment for 2017 of $575 related to the convertible senior notes was repaid with cash on hand in July. Remaining scheduled minimum debt repayments are $- in 2018, $626 in 2019, $- in 2020, $- in 2021 and $3,466 thereafter. Scheduled minimum capital lease repayments are $4 in 2017, $4 in 2018, $3 in 2019, $1 in 2020, $1 in 2021 and $2 thereafter. In May 2017, the Company amended its $3,000 Corporate Revolving Credit Facility to extend the facility to May 2022. |
OTHER LIABILITIES
OTHER LIABILITIES | 6 Months Ended |
Jun. 30, 2017 | |
OTHER LIABILITIES | |
OTHER LIABILITIES | NOTE 19 OTHER LIABILITIES At June 30, At December 31, 2017 2016 Other current liabilities: Reclamation and remediation liabilities $ 69 $ 61 Accrued operating costs 68 99 Accrued interest 56 57 Accrued capital expenditures 50 53 Royalties 35 52 Holt royalty obligation 14 13 Derivative instruments 11 27 Taxes other than income and mining 7 8 Boddington contingent consideration 5 3 Other 26 34 $ 341 $ 407 Other non-current liabilities: Holt royalty obligation $ 226 $ 174 Income and mining taxes 52 50 Power supply agreements 31 31 Social development obligations 24 25 Boddington contingent consideration 8 11 Derivative instruments — 1 Other 35 34 $ 376 $ 326 |
CHANGES IN EQUITY
CHANGES IN EQUITY | 6 Months Ended |
Jun. 30, 2017 | |
CHANGES IN EQUITY | |
CHANGES IN EQUITY | NOTE 20 CHANGES IN EQUITY Six Months Ended June 30, 2017 2016 Common stock: At beginning of period $ 849 $ 847 Stock-based awards 4 2 At end of period 853 849 Additional paid-in capital: At beginning of period 9,490 9,427 Stock-based awards 18 30 At end of period 9,508 9,457 Accumulated other comprehensive income (loss): At beginning of period (334) (334) Other comprehensive income (loss) 16 (7) At end of period (318) (341) Retained earnings: At beginning of period 716 1,410 Net income (loss) attributable to Newmont stockholders 223 75 Dividends paid (54) (27) At end of period 885 1,458 Noncontrolling interests: At beginning of period 1,153 2,942 Net income (loss) attributable to noncontrolling interests (14) 122 Distributions declared to noncontrolling interests (1) (71) — Cash calls requested from noncontrolling interests (2) 46 43 Dividends paid to noncontrolling interests — (146) Other (2) (1) At end of period 1,112 2,960 Total equity $ 12,040 $ 14,383 (1) Distributions declared to noncontrolling interests of $71 for the six months ended June 30, 2017 represents distributions declared to Staatsolie from Merian. The Company paid $80 in distributions during the six months ended June 30, 2017 related to current and prior period distributions declared. (2) Cash calls requested from noncontrolling interests of $46 and $43 for the six months ended June 30, 2017 and 2016, respectively, represents cash calls requested and paid from Staatsolie for the Merian mine. Staatsolie prepaid an additional $7 as of June 30, 2016. |
RECLASSIFICATIONS OUT OF ACCUMU
RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 6 Months Ended |
Jun. 30, 2017 | |
RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | |
RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | NOTE 21 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, 2016 $ (101) $ 118 $ (223) $ (128) $ (334) Change in other comprehensive income (loss) before reclassifications (11) 4 — (1) (8) Reclassifications from accumulated other comprehensive income (loss) — — 9 15 24 Net current-period other comprehensive income (loss) (11) 4 9 14 16 Balance at June 30, 2017 $ (112) $ 122 $ (214) $ (114) $ (318) 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 Operations Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Marketable securities adjustments: Sale of marketable securities $ — $ — $ — $ (103) Other income, net Total before tax — — — (103) Tax benefit (expense) — — — — Net of tax $ — $ — $ — $ (103) Pension and other post-retirement benefit adjustments: Amortization $ 4 $ 4 $ 10 $ 9 (1) Settlements — — 4 — Other expense, net Total before tax 4 4 14 9 Tax benefit (expense) (1) (1) (5) (3) Net of tax $ 3 $ 3 $ 9 $ 6 Hedge instruments adjustments: Operating cash flow hedges (effective portion) $ 8 $ 15 $ 18 $ 34 Costs applicable to sales Operating cash flow hedges (ineffective portion) — (1) — (1) Other income, net Interest rate contracts 3 5 5 8 Interest expense, net Total before tax 11 19 23 41 Tax benefit (expense) (4) (5) (8) (13) Net of tax $ 7 $ 14 $ 15 $ 28 Total reclassifications for the period, net of tax $ 10 $ 17 $ 24 $ (69) (1) This accumulated other comprehensive income (loss) component is included in General and administrative and costs that benefit the inventory/production process. Refer to Note 2 to the Consolidated Financial Statements for the year ended December 31, 2016 filed February 21, 2017 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, 2017 | |
NET CHANGE IN OPERATING ASSETS AND LIABILITIES | |
NET CHANGE IN OPERATING ASSETS AND LIABILITIES | NOTE 22 NET CHANGE IN OPERATING ASSETS AND LIABILITIES Net cash provided by (used in) operating activities of continuing operations attributable to the net change in operating assets and liabilities is composed of the following: Six Months Ended June 30, 2017 2016 Decrease (increase) in operating assets: Trade and other accounts receivables $ 9 $ 79 Inventories, stockpiles and ore on leach pads (135) (193) Other assets — (23) Increase (decrease) in operating liabilities: Accounts payable (21) (13) Reclamation and remediation liabilities (32) (16) Other accrued liabilities (76) (65) $ (255) $ (231) |
CONDENSED CONSOLIDATING FINANCI
CONDENSED CONSOLIDATING FINANCIAL STATEMENTS | 6 Months Ended |
Jun. 30, 2017 | |
CONDENSED CONSOLIDATING FINANCIAL STATEMENTS | |
CONDENSED CONSOLIDATING FINANCIAL STATEMENTS | NOTE 23 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. Three Months Ended June 30, 2017 (Issuer) (Guarantor) (Non-Guarantor) Newmont Newmont Mining Mining Newmont Other Corporation Condensed Consolidating Statement of Operations Corporation USA Subsidiaries Eliminations Consolidated Sales $ — $ 517 $ 1,358 $ — $ 1,875 Costs and expenses Costs applicable to sales (1) — 280 719 — 999 Depreciation and amortization 1 82 225 — 308 Reclamation and remediation — 3 41 — 44 Exploration — 13 38 — 51 Advanced projects, research and development — 2 30 — 32 General and administrative — 18 40 — 58 Other expense, net — 2 12 — 14 1 400 1,105 — 1,506 Other income (expense) Other income, net 23 3 5 — 31 Interest income - intercompany 23 24 15 (62) — Interest expense - intercompany (14) (4) (44) 62 — Interest expense, net (59) (1) (4) — (64) (27) 22 (28) — (33) Income (loss) before income and mining tax and other items (28) 139 225 — 336 Income and mining tax benefit (expense) 9 (22) (154) — (167) Equity income (loss) of affiliates 196 (150) (13) (36) (3) Net income (loss) from continuing operations 177 (33) 58 (36) 166 Net income (loss) from discontinued operations — — (15) — (15) Net income (loss) 177 (33) 43 (36) 151 Net loss (income) attributable to noncontrolling interests Continuing operations — — 26 — 26 Discontinued operations — — — — — — — 26 — 26 Net income (loss) attributable to Newmont stockholders $ 177 $ (33) 69 (36) 177 Comprehensive income (loss) $ 181 $ (31) 41 (36) 155 Comprehensive loss (income) attributable to noncontrolling interests — — 26 — 26 Comprehensive income (loss) attributable to Newmont stockholders $ 181 $ (31) 67 (36) 181 (1) Excludes Depreciation and amortization and Reclamation and remediation . Three Months Ended June 30, 2016 (Issuer) (Guarantor) (Non-Guarantor) Newmont Newmont Mining Mining Newmont Other Corporation Condensed Consolidating Statement of Operations Corporation USA Subsidiaries Eliminations Consolidated Sales $ — $ 459 $ 1,210 $ — $ 1,669 Costs and expenses Costs applicable to sales (1) — 284 618 — 902 Depreciation and amortization 2 76 203 — 281 Reclamation and remediation — 4 17 — 21 Exploration — 10 28 — 38 Advanced projects, research and development — 3 41 — 44 General and administrative — 23 39 — 62 Other expense, net — 9 6 — 15 2 409 952 — 1,363 Other income (expense) Other income, net (9) 1 9 — 1 Interest income - intercompany 31 — 10 (41) — Interest expense - intercompany (10) — (31) 41 — Interest expense, net (64) — (2) — (66) (52) 1 (14) — (65) Income (loss) before income and mining tax and other items (54) 51 244 — 241 Income and mining tax benefit (expense) (45) (5) (188) — (238) Equity income (loss) of affiliates 122 (174) (5) 52 (5) Net income (loss) from continuing operations 23 (128) 51 52 (2) Net income (loss) from discontinued operations — — 64 — 64 Net income (loss) 23 (128) 115 52 62 Net loss (income) attributable to noncontrolling interests Continuing operations — — 16 — 16 Discontinued operations — — (55) — (55) — — (39) — (39) Net income (loss) attributable to Newmont stockholders $ 23 $ (128) $ 76 $ 52 $ 23 Comprehensive income (loss) $ 68 $ (116) $ 145 $ 10 $ 107 Comprehensive loss (income) attributable to noncontrolling interests — — (39) — (39) Comprehensive income (loss) attributable to Newmont stockholders $ 68 $ (116) $ 106 $ 10 $ 68 (1) Excludes Depreciation and amortization and Reclamation and remediation . Six Months Ended June 30, 2017 (Issuer) (Guarantor) (Non-Guarantor) Newmont Newmont Mining Mining Newmont Other Corporation Condensed Consolidating Statement of Operations Corporation USA Subsidiaries Eliminations Consolidated Sales $ — $ 920 $ 2,614 $ — $ 3,534 Costs and expenses Costs applicable to sales (1) — 565 1,367 — 1,932 Depreciation and amortization 2 161 438 — 601 Reclamation and remediation — 7 67 — 74 Exploration — 22 65 — 87 Advanced projects, research and development — 3 55 — 58 General and administrative — 35 78 — 113 Other expense, net — 8 23 — 31 2 801 2,093 — 2,896 Other income (expense) Other income, net 26 3 (7) — 22 Interest income - intercompany 47 24 22 (93) — Interest expense - intercompany (22) (4) (67) 93 — Interest expense, net (121) (3) (7) — (131) (70) 20 (59) — (109) Income (loss) before income and mining tax and other items (72) 139 462 — 529 Income and mining tax benefit (expense) 25 (22) (280) — (277) Equity income (loss) of affiliates 270 (234) (14) (27) (5) Net income (loss) from continuing operations 223 (117) 168 (27) 247 Net income (loss) from discontinued operations — — (38) — (38) Net income (loss) 223 (117) 130 (27) 209 Net loss (income) attributable to noncontrolling interests Continuing operations — — 14 — 14 Discontinued operations — — — — — — — 14 — 14 Net income (loss) attributable to Newmont stockholders $ 223 $ (117) $ 144 $ (27) $ 223 Comprehensive income (loss) $ 239 $ (110) $ 123 $ (27) $ 225 Comprehensive loss (income) attributable to noncontrolling interests — — 14 — 14 Comprehensive income (loss) attributable to Newmont stockholders $ 239 $ (110) $ 137 $ (27) $ 239 (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 Operations Corporation USA Subsidiaries Eliminations Consolidated Sales $ — $ 930 $ 2,201 $ — $ 3,131 Costs and expenses Costs applicable to sales (1) — 590 1,163 — 1,753 Depreciation and amortization 2 160 395 — 557 Reclamation and remediation — 7 35 — 42 Exploration — 16 52 — 68 Advanced projects, research and development — 5 66 — 71 General and administrative — 40 75 — 115 Other expense, net — 13 20 — 33 2 831 1,806 — 2,639 Other income (expense) Other income, net — 1 96 — 97 Interest income - intercompany 61 — 19 (80) — Interest expense - intercompany (18) — (62) 80 — Interest expense, net (135) (2) (3) — (140) (92) (1) 50 — (43) Income (loss) before income and mining tax and other items (94) 98 445 — 449 Income and mining tax benefit (expense) 30 (16) (479) — (465) Equity income (loss) of affiliates 139 (448) (3) 302 (10) Net income (loss) from continuing operations 75 (366) (37) 302 (26) Net income (loss) from discontinued operations — — 223 — 223 Net income (loss) 75 (366) 186 302 197 Net loss (income) attributable to noncontrolling interests Continuing operations — — 28 — 28 Discontinued operations — — (150) — (150) — — (122) — (122) Net income (loss) attributable to Newmont stockholders $ 75 $ (366) $ 64 $ 302 $ 75 Comprehensive income (loss) $ 68 $ (348) $ 155 $ 315 $ 190 Comprehensive loss (income) attributable to noncontrolling interests — — (122) — (122) Comprehensive income (loss) attributable to Newmont stockholders $ 68 $ (348) $ 33 $ 315 $ 68 (1) Excludes Depreciation and amortization and Reclamation and remediation . Six Months Ended June 30, 2017 (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 (used in) operating activities of continuing operations $ (116) $ 222 $ 802 $ — $ 908 Net cash provided by (used in) operating activities of discontinued operations — — (9) — (9) Net cash provided by (used in) operating activities (116) 222 793 — 899 Investing activities: Additions to property, plant and mine development — (121) (242) — (363) Purchase of investments (109) — (4) — (113) Proceeds from sales of investments — — 19 — 19 Other — 2 9 — 11 Net cash provided by (used in) investing activities of continuing operations (109) (119) (218) — (446) Net cash provided by (used in) investing activities of discontinued operations — — — — — Net cash provided by (used in) investing activities (109) (119) (218) — (446) Financing activities: Distributions to noncontrolling interests — — (80) — (80) Dividends paid to common stockholders (54) — — — (54) Funding from noncontrolling interests — — 46 — 46 Payments for withholding of employee taxes related to stock-based compensation — (13) — — (13) Repayment of debt — (1) (2) — (3) Net intercompany borrowings (repayments) 282 (90) (192) — — Other (3) — — — (3) Net cash provided by (used in) financing activities of continuing operations 225 (104) (228) — (107) Net cash provided by (used in) financing activities of discontinued operations — — — — — Net cash provided by (used in) financing activities 225 (104) (228) — (107) Effect of exchange rate changes on cash — — 3 — 3 Net change in cash and cash equivalents — (1) 350 — 349 Less net cash provided by (used in) Batu Hijau discontinued operations — — — — — — (1) 350 — 349 Cash and cash equivalents at beginning of period — 1 2,755 — 2,756 Cash and cash equivalents at end of period $ — $ — $ 3,105 $ — $ 3,105 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 (used in) operating activities of continuing operations $ 720 $ 308 $ 659 $ (862) $ 825 Net cash provided by (used in) operating activities of discontinued operations — — 478 — 478 Net cash provided by (used in) operating activities 720 308 1,137 (862) 1,303 Investing activities: Additions to property, plant and mine development — (129) (434) — (563) Proceeds from sales of investments — — 184 — 184 Purchases of investments — — (2) — (2) Other — — 4 — 4 Net cash provided by (used in) investing activities of continuing operations — (129) (248) — (377) Net cash provided by (used in) investing activities of discontinued operations — — (28) — (28) Net cash provided by (used in) investing activities — (129) (276) — (405) Financing activities: Dividends paid to common stockholders (27) (862) — 862 (27) Funding from noncontrolling interests — — 50 — 50 Payments for withholding of employee taxes related to stock-based compensation — (4) — — (4) Repayment of debt (498) (1) (2) — (501) Dividends paid to noncontrolling interests — — (146) — (146) Net intercompany borrowings (repayments) (195) (492) 687 — — Other — — (1) — (1) Net cash provided by (used in) financing activities of continuing operations (720) (1,359) 588 862 (629) Net cash provided by (used in) financing activities of discontinued operations — — (153) — (153) Net cash provided by (used in) financing activities (720) (1,359) 435 862 (782) Effect of exchange rate changes on cash — — 4 — 4 Net change in cash and cash equivalents — (1,180) 1,300 — 120 Less net cash provided by (used in) Batu Hijau discontinued operations — — 302 — 302 — (1,180) 998 — (182) Cash and cash equivalents at beginning of period — 1,181 1,182 — 2,363 Cash and cash equivalents at end of period $ — $ 1 $ 2,180 $ — $ 2,181 At June 30, 2017 (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 $ — $ — $ 3,105 $ — $ 3,105 Trade receivables — 36 122 — 158 Other accounts receivables — — 179 — 179 Intercompany receivable 8,952 6,280 12,023 (27,255) — Investments — — 61 — 61 Inventories — 167 498 — 665 Stockpiles and ore on leach pads — 246 575 — 821 Other current assets — 39 70 — 109 Current assets 8,952 6,768 16,633 (27,255) 5,098 Property, plant and mine development, net 20 3,093 9,181 (32) 12,262 Investments 110 9 187 — 306 Investments in subsidiaries 13,215 303 — (13,518) — Stockpiles and ore on leach pads — 615 1,166 — 1,781 Deferred income tax assets 504 64 1,167 (490) 1,245 Non-current intercompany receivable 2,048 525 949 (3,522) — Other non-current assets — 223 227 — 450 Total assets $ 24,849 $ 11,600 $ 29,510 $ (44,817) $ 21,142 Liabilities: Debt $ 573 $ 2 $ 2 $ — $ 577 Accounts payable — 60 244 — 304 Intercompany payable 9,163 4,340 13,752 (27,255) — Employee-related benefits — 96 127 — 223 Income and mining taxes — 15 112 — 127 Other current liabilities 56 74 211 — 341 Current liabilities 9,792 4,587 14,448 (27,255) 1,572 Debt 4,039 3 4 — 4,046 Reclamation and remediation liabilities — 252 1,808 — 2,060 Deferred income tax liabilities 9 92 1,003 (490) 614 Employee-related benefits — 278 156 — 434 Non-current intercompany payable 81 — 3,473 (3,554) — Other non-current liabilities — 18 358 — 376 Total liabilities 13,921 5,230 21,250 (31,299) 9,102 Equity: Newmont stockholders’ equity 10,928 6,370 7,148 (13,518) 10,928 Noncontrolling interests — — 1,112 — 1,112 Total equity 10,928 6,370 8,260 (13,518) 12,040 Total liabilities and equity $ 24,849 $ 11,600 $ 29,510 $ (44,817) $ 21,142 At December 31, 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 $ — $ 1 $ 2,755 $ — $ 2,756 Trade receivables — 21 106 — 127 Other accounts receivables — 2 214 — 216 Intercompany receivable 7,255 6,065 11,347 (24,667) — Investments — — 56 — 56 Inventories — 155 462 — 617 Stockpiles and ore on leach pads — 224 539 — 763 Other current assets — 83 59 — 142 Current assets 7,255 6,551 15,538 (24,667) 4,677 Property, plant and mine development, net 20 3,144 9,355 (34) 12,485 Investments — 8 219 — 227 Investments in subsidiaries 13,222 537 — (13,759) — Stockpiles and ore on leach pads — 599 1,265 — 1,864 Deferred income tax assets 477 48 1,296 (490) 1,331 Non-current intercompany receivable 2,219 606 955 (3,780) — Other non-current assets — 224 223 — 447 Total assets $ 23,193 $ 11,717 $ 28,851 $ (42,730) $ 21,031 Liabilities: Debt $ 560 $ 3 $ 3 $ — $ 566 Accounts payable — 62 258 — 320 Intercompany payable 7,720 4,795 12,152 (24,667) — Employee-related benefits — 148 156 — 304 Income and mining taxes — 13 140 — 153 Other current liabilities 62 109 236 — 407 Current liabilities 8,342 5,130 12,945 (24,667) 1,750 Debt 4,038 4 7 — 4,049 Reclamation and remediation liabilities — 247 1,782 — 2,029 Deferred income tax liabilities 9 93 980 (490) 592 Employee-related benefits — 269 142 — 411 Non-current intercompany payable 83 — 3,731 (3,814) — Other non-current liabilities — 21 305 — 326 Total liabilities 12,472 5,764 19,892 (28,971) 9,157 Equity: Newmont stockholders’ equity 10,721 5,953 7,806 (13,759) 10,721 Noncontrolling interests — — 1,153 — 1,153 Total equity 10,721 5,953 8,959 (13,759) 11,874 Total liabilities and equity $ 23,193 $ 11,717 $ 28,851 $ (42,730) $ 21,031 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Jun. 30, 2017 | |
COMMITMENTS AND CONTINGENCIES | |
COMMITMENTS AND CONTINGENCIES | NOTE 24 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 and reportable 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 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. 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 had one year from February 15, 2016, to submit a modification to the previously approved Environmental Impact Assessment (“EIA”). On February 15, 2017, Yanacocha submitted its proposed modification to the EIA. After approval, MINAM may provide up to 3 years to develop and implement the modifications to the water management system. In the event Yanacocha is unsuccessful in implementing the modifications, MINAM could impose fines and penalties relating to potential intermittent non-compliant exceedances. The Company is conducting a comprehensive study of the current Yanacocha long-term mining and closure plans as part of the requirement to submit an updated closure plan to Peruvian regulators every five years. The revised closure plan will be submitted to Peruvian regulators in the second half of 2017. The revised closure plan may require the Company to provide additional reclamation bonding for Yanacocha. 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, reclamation and remediation costs for environmental liabilities may exceed the provisions we have made” for the year ended December 31, 2016, filed February 21, 2017 on Form 10-K. Estimated future reclamation costs are based principally on legal and regulatory requirements. At June 30, 2017 and December 31, 2016, $1,846 and $1,792, 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 $37 and $28 at June 30, 2017 and December 31, 2016, 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, $283 and $298 were accrued for such obligations at June 30, 2017 and December 31, 2016, 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 43% greater or 1% lower than the amount accrued at June 30, 2017. 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. The ASAOC will be final upon USFS concurrence with the notice of completion and Newmont payment of USFS response costs. Newmont anticipates that the USFS will issue an Action Memorandum to select the preferred Removal Action alternative identified in the EE/CA. During the third quarter of 2016, Newmont received a notice of completion of work per the ASAOC from the USFS. Newmont is continuing discussions with the USFS on the process to move forward and issue an Action Memorandum and support the development of a Consent Decree. 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 Dawn 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, included in Other noncurrent assets on the Condensed Consolidated Balance Sheets for all periods presented. In 2016, Newmont completed the remedial design process (with the exception of the design of the water treatment plant which is on hold pending final permitting) and subsequently procured a contractor and initiated implementation of the remedial action. The Dawn mill site is regulated by the Washington Department of Health and is in the process of being closed. Remediation at the Dawn mill site began in 2013. The earthworks component of the closure is anticipated to be completed in 2017. The remaining closure activity will consist primarily of addressing groundwater issues. The remediation liability for the Midnite mine site and Dawn mill site is approximately $192 at June 30, 2017. 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, 2015, 2016, the first quarter of 2017 and June 2017, 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. In the first quarter of 2015 and the fourth quarter of 2016, the water authority of Cajamarca issued notices of alleged regulatory violations and resolved some allegations in early 2017 with no findings. The experience with the OEFA and the water authority is that in the case of a finding of violation, remedial action is often the outcome rather than a significant fine. The alleged OEFA violations currently range from zero to 50,430 units and the water authority alleged violations range from zero to 30,000 units, with each unit having a potential fine equivalent to approximately $0.00122 based on current exchange rates ($0 to $98). 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. 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 recently conducted 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 included a review of compliance with the requirements of the U.S. Foreign Corrupt Practices Act and other applicable laws and regulations. The Company worked with the U.S. Securities and Exchange Commission (“SEC”) 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. SEC 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. Both of the initial tolling agreements were effective through October 29, 2016. In September 2016, the Company agreed to extend its tolling agreement with the Department of Justice through April 2017, and agreed to a similar extension with the SEC in October 2016. In late February 2017, the Company received a declination letter from the SEC relating to this investigation indicating that they do not intend to recommend an enforcement action. In June 2017, the Company received a similar letter from the U.S. Department of Justice acknowledging the Company’s cooperation in the investigation and indicating that the Department of Justice had closed its inquiry into the matter. 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 $30 in 2017, $30 in 2018, $31 in 2019, $33 in 2020, $34 in 2021 and $35 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, 2017 and December 31, 2016, the estimated fair value of the unpaid contingent consideration was approximately $13 and $14, 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 $84 has been paid to date. During the six months ended June 30, 2017 and 2016, the Company paid $6 and $-, respectively. The range of remaining undiscounted amounts the Company could pay is between $0 and $16 and the Company expects to pay $5 in the next 12 months. 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 remediation, reclamation, exploration permitting, workers compensation programs and other general corporate purposes. At June 30, 2017 and December 31, 2016, there were $2,270 and $2,227, respectively, of outstanding letters of credit, surety bonds and bank guarantees. 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 ACCOUN31
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Jun. 30, 2017 | |
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 and copper. 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 on 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 particularly sensitive to the outlook for commodity prices. A decline in the Company’s price outlook from current levels could result in material impairment charges related to these assets. 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 Inventory In July 2015, Accounting Standard Update (“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. The Company records inventory at the lower of cost or net realizable value and the adoption of this guidance effective January 1, 2017, had no impact on the Consolidated Financial Statements or disclosures. Stock-based compensation I n 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 of cash payments related to tax withholdings on behalf of employees on the Consolidated Statements of Cash Flows. This update is effective in fiscal years, including interim periods, beginning after December 15, 2016. The Company adopted this guidance as of January 1, 2017, and reclassified $(4) from Net cash provided by (used in) operating activities of continuing operations to Net cash provided by (used in) financing activities of continuing operations for the six months ended June 30, 2016. Adoption of this guidance had no other impact on the Consolidated Financial Statements or disclosures. Business Combinations In January 2017, ASU No. 2017-01 was issued clarifying the definition of a business and providing additional guidance for determining whether transactions should be accounted for as acquisitions of assets or businesses. This update is effective in fiscal years, including interim periods, beginning after December 15, 2017, and early adoption is permitted. The new guidance is required to be applied on a prospective basis. Adoption of this guidance, effective April 1, 2017, had no impact on the Consolidated Financial Statements or disclosures. Goodwill In January 2017, ASU No. 2017-04 was issued, which removes step two from the goodwill impairment test. As a result, an entity should perform its annual goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount and should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value. This update is effective in fiscal years, including interim periods, beginning after December 15, 2019, and early adoption is permitted. Adoption of this guidance, effective April 1, 2017, had no impact on the Consolidated Financial Statements or disclosures. Recently Issued Accounting Pronouncements 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, May 2016 and December 2016 by ASU No. 2015-14, No. 2016-08, No. 2016-10, No. 2016-12 and No. 2016-20, respectively. The new guidance 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. The Company has performed an assessment of the revised guidance and the impacts on the Company’s Consolidated Financial Statements and disclosures. The Company has completed the review of all contracts and determined that the adoption of this guidance will primarily impact the timing of revenue recognition on certain concentrate contracts based on the Company’s determination of when control is transferred. Currently, revenue is recognized for these contracts based on varying contractual terms indicating when risk of loss and title have transferred to the buyer. Upon adoption, revenue related to concentrate sales will typically be recognized upon completion of loading the material for shipment to the customer and satisfaction of the Company’s significant performance obligations. The Company is finalizing the assessment and quantifying the impacts of changes on certain concentrate contracts. The Company furthered its evaluation of variable consideration for concentrate sales related to the variable nature of the price and metal quantity. Based on our current analysis, the estimate of revenue recognized for concentrates will remain unchanged as sales will initially be recorded on a provisional basis based on the forward prices for the estimated month of settlement and the Company’s estimated metal quantities delivered based on weighing and assay data. The Company believes changes in the underlying weight and metal content are not significant to the sale as a whole and therefore do not preclude the recognition of revenue upon transfer of control. Additionally, the Company completed its evaluation of the impacts of insurance and refining fee classification. Newmont has determined that insurance on the transportation of goods is not considered a separate performance obligation. Newmont has also determined that revenue will be recognized, net of treatment and refining charges when these payments are to customers. When these payments are to third parties, the charges will be recognized within Costs applicable to sales . This classification remains unchanged from current practice. The Company will adopt the new guidance effective January 1, 2018. The guidance may be applied retrospectively for all periods presented or retrospectively with the cumulative effect of initially applying the guidance recognized at the date of initial application. The Company currently anticipates adopting the guidance retrospectively with the cumulative effect of initially applying the amended guidance recognized at January 1, 2018. Results for reporting periods beginning after January 1, 2018, will be presented in the Consolidated Financial Statements under the new guidance, while prior period amounts will not be adjusted and continue to be reported under the guidance in effect for those periods. In the related disclosures, results for reporting periods beginning after January 1, 2018, will be presented under prior guidance along with prior period amounts for comparative purposes. 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 upon adoption, an entity should apply the amendments by means of a cumulative-effect adjustment to the balance sheet at the beginning of the first reporting period in which the guidance is effective. Early adoption is not permitted. The Company expects the updated guidance to result in a significant reclassification of unrealized gains and losses on equity investments from Accumulated other comprehensive income (loss) to Retained earnings in the Consolidated Balance Sheets upon adoption. 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. The Company expects to begin assessment of the new guidance during the second half of 2017 with impact analysis performed in 2018. The Company is currently evaluating this guidance and the impact it will have on the Consolidated Financial Statements and disclosures. This update is effective in fiscal years, including interim periods, beginning after December 15, 2018, and early adoption is permitted. The Company anticipates adopting the new guidance effective January 1, 2019. Statement of Cash Flows In August 2016, ASU No. 2016-15 was issued related to the statement of cash flows. This new guidance addresses eight specific cash flow issues with the objective of reducing the existing diversity in practice in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. This update is effective in fiscal years, including interim periods, beginning after December 15, 2017, 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. The Company anticipates adopting the new guidance effective January 1, 2018. Intra-Entity Transfers In October 2016, ASU No. 2016-16 was issued related to the intra-entity transfers of assets other than inventory. This new guidance requires entities to recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. This update is effective in fiscal years, including interim periods, beginning after December 15, 2017, 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. The Company anticipates adopting the new guidance effective January 1, 2018. Restricted Cash In November 2016, ASU No. 2016-18 was issued related to the inclusion of restricted cash in the statement of cash flows. This new guidance requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents and amounts generally described as restricted cash or restricted cash equivalents. This update is effective in fiscal years, including interim periods, beginning after December 15, 2017, and early adoption is permitted. The adoption of this guidance will result in the inclusion of the restricted cash balances within the overall cash balance and removal of the changes in restricted cash activity, which is currently recognized in Other within financing activities, on the Consolidated Statements of Cash Flows. Furthermore, the Company will be required to reconcile Cash and cash equivalents and restricted cash reported within the Consolidated Balance Sheets to the total shown in the Consolidated Statements of Cash Flows. The Company anticipates adopting this new guidance effective January 1, 2018, and does not expect it to have a material impact on the Consolidated Financial Statements or disclosures. Employee Benefits I n March 2017, ASU No. 2017-07 was issued related to the presentation of net periodic pension and postretirement cost. The new guidance requires the service cost component of net benefit costs be classified similar to other compensation costs arising from services rendered by employees. Other components of net benefit costs are required to be classified separately from the service cost and outside income from operations. This update is effective in fiscal years, including interim periods, beginning after December 15, 2017. The Company anticipates adopting this new guidance effective January 1, 2018. The adoption of this guidance will result in the recognition of other components of net benefit costs within Other income, net rather than Costs and expenses and will no longer be included in costs that benefit the inventory/production process. The adoption of this guidance is not expected to have a material impact on the Consolidated Financial Statements or disclosures. |
DISCONTINUED OPERATIONS (Tables
DISCONTINUED OPERATIONS (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
DISCONTINUED OPERATIONS | |
Schedule of Net Income (Loss) from Discontinued Operations, Net of Tax | Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 Holt royalty obligation $ (15) $ (27) $ (38) $ (53) Batu Hijau operations — 91 — 276 Net income (loss) from discontinued operations $ (15) $ 64 $ (38) $ 223 |
PTNNT - Batu Hijau | Discontinued operations - Held-for-sale | |
DISCONTINUED OPERATIONS | |
Schedule of financial statement impact of discontinued operations | Three Months Ended Six Months Ended June 30, 2016 June 30, 2016 Sales $ 369 $ 939 Costs and expenses Costs applicable to sales (1) 157 387 Depreciation and amortization 33 79 Reclamation and remediation 5 9 Advanced projects, research and development — 1 General and administrative 2 6 Other expense (income), net 5 3 202 485 Interest expense, net (5) (10) Income (loss) before income and mining tax and other items 162 444 Income and mining tax benefit (expense) (71) (168) Net income (loss) from discontinued operations 91 276 Net loss (income) attributable to noncontrolling interests (55) (150) Net income (loss) from discontinued operations attributable to Newmont stockholders $ 36 $ 126 (1) Excludes Depreciation and amortization and Reclamation and remediation. The consolidated statements of comprehensive income (loss) were not impacted by discontinued operations as PTNNT did not have any other comprehensive income (loss). Cash flows from Batu Hijau consist of the following: Six Months Ended June 30, 2016 Net cash provided by (used in) operating activities $ 483 Net cash provided by (used in) investing activities (28) Net cash provided by (used in) financing activities (153) Net cash provided by (used in) Batu Hijau discontinued operations $ 302 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
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, 2017 Carlin $ 279 $ 170 $ 46 $ 5 $ 55 $ 48 Phoenix: Gold 67 46 12 Copper 24 16 4 Total Phoenix 91 62 16 3 9 4 Twin Creeks 156 61 17 2 72 9 Long Canyon 57 13 18 5 21 3 CC&V 166 74 33 3 53 4 Other North America — — 1 4 (5) 1 North America 749 380 131 22 205 69 Yanacocha 149 134 34 8 (60) 9 Merian 150 64 26 4 54 22 Other South America — — 3 9 (16) — South America 299 198 63 21 (22) 31 Boddington: Gold 262 147 29 Copper 52 28 6 Total Boddington 314 175 35 1 96 14 Tanami 123 58 15 6 55 28 Kalgoorlie 113 55 5 1 52 4 Other Australia — — 1 2 (5) 2 Australia 550 288 56 10 198 48 Ahafo 112 60 15 10 25 36 Akyem 165 73 40 5 45 6 Other Africa — — — 1 (4) — Africa 277 133 55 16 66 42 Corporate and Other — — 3 14 (111) 2 Consolidated $ 1,875 $ 999 $ 308 $ 83 $ 336 $ 192 (1) Includes an increase in accrued capital expenditures of $9; consolidated capital expenditures on a cash basis were $183. 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 $ 256 $ 184 $ 43 $ 4 $ 22 $ 43 Phoenix: Gold 62 39 12 Copper 22 22 7 Total Phoenix 84 61 19 1 3 3 Twin Creeks 144 58 13 2 70 14 Long Canyon — — — 7 (7) 37 CC&V 144 58 28 1 55 15 Other North America — — — 5 (6) 2 North America 628 361 103 20 137 114 Yanacocha 194 120 59 11 (19) 24 Merian — — — 11 (10) 60 Other South America — — 4 10 (14) — South America 194 120 63 32 (43) 84 Boddington: Gold 250 141 29 Copper 35 33 6 Total Boddington 285 174 35 — 75 12 Tanami 179 64 23 3 89 33 Kalgoorlie 122 67 4 2 49 5 Other Australia — — 2 2 (10) — Australia 586 305 64 7 203 50 Ahafo 115 60 17 7 30 22 Akyem 146 56 32 3 55 3 Other Africa — — — — (2) — Africa 261 116 49 10 83 25 Corporate and Other — — 2 13 (139) 2 Consolidated $ 1,669 $ 902 $ 281 $ 82 $ 241 $ 275 (1) Includes a decrease in accrued capital expenditures of $8; consolidated capital expenditures on a cash basis were $283. 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, 2017 Carlin $ 532 $ 363 $ 96 $ 8 $ 60 $ 96 Phoenix: Gold 120 89 23 Copper 50 34 9 Total Phoenix 170 123 32 4 7 10 Twin Creeks 249 108 30 4 103 17 Long Canyon 96 25 31 10 30 7 CC&V 312 144 62 7 96 8 Other North America — — 1 7 (10) 3 North America 1,359 763 252 40 286 141 Yanacocha 328 253 70 12 (52) 20 Merian 283 112 47 8 114 38 Other South America — — 7 19 (35) — South America 611 365 124 39 27 58 Boddington: Gold 490 269 55 Copper 97 49 10 Total Boddington 587 318 65 1 182 29 Tanami 215 108 31 9 75 52 Kalgoorlie 217 107 9 3 95 8 Other Australia — — 3 3 (20) 3 Australia 1,019 533 108 16 332 92 Ahafo 226 136 38 16 34 53 Akyem 319 135 74 6 100 12 Other Africa — — — 2 (5) — Africa 545 271 112 24 129 65 Corporate and Other — — 5 26 (245) 4 Consolidated $ 3,534 $ 1,932 $ 601 $ 145 $ 529 $ 360 (1) Includes a decrease in accrued capital expenditures of $3; consolidated capital expenditures on a cash basis were $363. 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 $ 502 $ 373 $ 92 $ 7 $ 24 $ 79 Phoenix: Gold 126 88 27 Copper 43 44 12 Total Phoenix 169 132 39 1 (8) 7 Twin Creeks 303 118 26 4 153 20 Long Canyon — — — 13 (13) 73 CC&V 209 91 46 4 65 36 Other North America — — — 6 (9) 2 North America 1,183 714 203 35 212 217 Yanacocha 405 248 128 20 (30) 38 Merian — — 1 14 (14) 142 Other South America — — 7 16 (25) — South America 405 248 136 50 (69) 180 Boddington: Gold 454 252 52 Copper 65 56 11 Total Boddington 519 308 63 — 139 23 Tanami 299 123 42 6 127 57 Kalgoorlie 228 132 9 3 82 8 Other Australia — — 6 3 (15) — Australia 1,046 563 120 12 333 88 Ahafo 216 117 32 12 50 39 Akyem 281 111 61 4 102 10 Other Africa — — — 1 (4) — Africa 497 228 93 17 148 49 Corporate and Other — — 5 25 (175) 4 Consolidated $ 3,131 $ 1,753 $ 557 $ 139 $ 449 $ 538 (1) Includes a decrease in accrued capital expenditures of $25; consolidated capital expenditures on a cash basis were $563. |
RECLAMATION AND REMEDIATION (Ta
RECLAMATION AND REMEDIATION (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
RECLAMATION AND REMEDIATION | |
Reclamation and Remediation Expense | Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 Reclamation $ 15 $ — $ 15 $ — Reclamation accretion 25 19 50 38 40 19 65 38 Remediation 2 1 6 2 Remediation accretion 2 1 3 2 4 2 9 4 $ 44 $ 21 $ 74 $ 42 |
Reconciliation of Reclamation Liabilities | 2017 2016 Reclamation balance at January 1, $ 1,792 $ 1,300 Additions, changes in estimates and other 15 2 Payments and other (11) (6) Accretion expense 50 38 Reclamation balance at June 30, $ 1,846 $ 1,334 |
Reconciliation of Remediation Liabilities | 2017 2016 Remediation balance at January 1, $ 298 $ 318 Additions, changes in estimates and other 3 1 Payments and other (21) (10) Accretion expense 3 2 Remediation balance at June 30, $ 283 $ 311 |
OTHER EXPENSE, NET (Tables)
OTHER EXPENSE, NET (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
OTHER EXPENSE, NET | |
Other Expense, Net | Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 Restructuring and other $ 1 $ 6 $ 8 $ 19 Acquisition costs 3 2 5 2 Impairment of long-lived assets — 4 3 4 Other 10 3 15 8 $ 14 $ 15 $ 31 $ 33 |
OTHER INCOME, NET (Tables)
OTHER INCOME, NET (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
OTHER INCOME, NET. | |
Other Income, Net | Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 Foreign currency exchange, net $ (4) $ (4) $ (21) $ (20) Gain on asset and investment sales, net 14 — 16 104 Tanami insurance proceeds 13 — 13 — Other 8 5 14 13 $ 31 $ 1 $ 22 $ 97 |
INCOME AND MINING TAXES (Tables
INCOME AND MINING TAXES (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
INCOME AND MINING TAXES | |
Income and Mining Tax Expense Reconciliation | Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Income (loss) before income and mining tax and other items $ 336 $ 241 $ 529 $ 449 Tax at statutory rate % $ 118 35 % $ 84 35 % $ 185 35 % $ 157 Reconciling items: Percentage depletion (13) (42) 45 109 (14) (74) (4) (17) Change in valuation allowance on deferred tax assets 21 72 42 101 26 139 74 333 Mining and other taxes 5 16 (20) (47) 7 35 5 24 Tax impact on sale of assets (1) (5) — — (1) (5) (7) (35) Other 3 8 (3) (9) (1) (3) 1 3 Income and mining tax expense 50 % $ 167 99 % $ 238 52 % $ 277 104 % $ 465 |
NET INCOME (LOSS) ATTRIBUTABL38
NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS FROM CONTINUING OPERATIONS (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS FROM CONTINUING OPERATIONS | |
Schedule of Net Income (Loss) Attributable to Noncontrolling Interests From Continuing Operations | Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 Yanacocha $ (38) $ (13) $ (39) $ (24) Merian 12 (3) 26 (4) Other — — (1) — $ (26) $ (16) $ (14) $ (28) |
Schedule summarizing the assets and liabilities of consolidated VIEs (including noncontrolling interests) | At June 30, At December 31, 2017 2016 Current assets: Cash and cash equivalents $ 20 $ 50 Inventories 64 57 Stockpiles and ore on leach pads 7 23 Other current assets (1) 35 37 126 167 Non-current assets: Property, plant and mine development, net 741 746 Other non-current assets (2) 23 8 Total assets $ 890 $ 921 Current liabilities: Other current liabilities (3) $ 38 $ 43 38 43 Non-current liabilities: Reclamation and remediation liabilities 12 11 Total liabilities $ 50 $ 54 (1) Other current assets include other accounts receivables, prepaid assets and other current assets. (2) Other non-current assets include intangibles, stockpiles and ore on leach pads. (3) Other current liabilities include accounts payable, employee-related benefits and other current liabilities. |
INCOME (LOSS) PER COMMON SHARE
INCOME (LOSS) PER COMMON SHARE (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
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, 2017 2016 2017 2016 Net income (loss) attributable to Newmont stockholders: Continuing operations $ 192 $ 14 $ 261 $ 2 Discontinued operations (15) 9 (38) 73 $ 177 $ 23 $ 223 $ 75 Weighted average common shares (millions): Basic 533 531 533 530 Effect of employee stock-based awards 2 2 1 2 Diluted 535 533 534 532 Net income (loss) per common share attributable to Newmont stockholders: Basic: Continuing operations $ 0.36 $ 0.02 $ 0.49 $ — Discontinued operations (0.03) 0.02 (0.07) 0.14 $ 0.33 $ 0.04 $ 0.42 $ 0.14 Diluted: Continuing operations $ 0.36 $ 0.02 $ 0.49 $ — Discontinued operations (0.03) 0.02 (0.07) 0.14 $ 0.33 $ 0.04 $ 0.42 $ 0.14 |
EMPLOYEE PENSION AND OTHER BE40
EMPLOYEE PENSION AND OTHER BENEFIT PLANS (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
EMPLOYEE PENSION AND OTHER BENEFIT PLANS | |
Employee Pension and Other Benefit Plans | Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 Pension benefit costs, net: Service cost $ 8 $ 8 $ 15 $ 15 Interest cost 11 12 22 23 Expected return on plan assets (16) (15) (31) (29) Amortization, net 7 6 14 12 Settlements — — 4 — $ 10 $ 11 $ 24 $ 21 Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 Other benefit costs, net: Service cost $ 1 $ 1 $ 1 $ 1 Interest cost 1 1 2 2 Amortization, net (3) (2) (4) (3) $ (1) $ — $ (1) $ — |
STOCK BASED COMPENSATION (Table
STOCK BASED COMPENSATION (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
STOCK-BASED COMPENSATION | |
Stock Option and Other Stock Based Compensation | Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 Stock-based compensation: Performance leveraged stock units $ 9 $ 11 $ 17 $ 19 Restricted stock units 10 9 17 15 Strategic stock units — 1 1 3 $ 19 $ 21 $ 35 $ 37 |
FAIR VALUE ACCOUNTING (Tables)
FAIR VALUE ACCOUNTING (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
FAIR VALUE ACCOUNTING | |
Fair Value Measurement of Assets and Liabilities | Fair Value at June 30, 2017 Total Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 3,105 $ 3,105 $ — $ — Restricted assets 68 68 — — Marketable equity securities: Extractive industries 174 174 — — Other 22 22 — — Trade receivable from provisional copper and gold concentrate sales, net 151 151 — — Batu Hijau contingent consideration 13 — — 13 $ 3,533 $ 3,520 $ — $ 13 Liabilities: Debt (1) $ 5,159 $ — $ 5,159 $ — Derivative instruments, net: Foreign exchange forward contracts 8 — 8 — Diesel forward contracts 3 — 3 — Boddington contingent consideration 13 — — 13 Holt royalty obligation 240 — — 240 $ 5,423 $ — $ 5,170 $ 253 Fair Value at December 31, 2016 Total Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 2,756 $ 2,756 $ — $ — Restricted assets 68 68 — — Marketable equity securities: Extractive industries 60 60 — — Other 16 16 — — Marketable debt securities: Asset backed commercial paper 18 — — 18 Trade receivable from provisional copper and gold concentrate sales, net 113 113 — — Batu Hijau contingent consideration 13 — — 13 $ 3,044 $ 3,013 $ — $ 31 Liabilities: Debt (1) $ 4,882 $ — $ 4,882 $ — Derivative instruments, net: Foreign exchange forward contracts 24 — 24 — Boddington contingent consideration 14 — — 14 Holt royalty obligation 187 — — 187 $ 5,107 $ — $ 4,906 $ 201 (1) Debt, exclusive of capital leases, is carried at amortized cost. The outstanding carrying value was $4,608 and $4,599 at June 30, 2017 and December 31, 2016, respectively. The fair value measurement of debt was based on an independent third party pricing source. |
Fair Value Inputs Assets Liabilities Quantitative Information | At June 30, Range/Weighted Description 2017 Valuation technique Unobservable input average Batu Hijau contingent consideration $ 13 Monte Carlo Discount rate 17.10 % Short-term copper price $ Long-term copper price $ Boddington contingent consideration $ 13 Monte Carlo Discount rate 2.97 % Short-term gold price $ 1,257 Long-term gold price $ 1,300 Short-term copper price $ Long-term copper price $ Long-term Australian to U.S. dollar exchange rate $ Holt royalty obligation $ 240 Monte Carlo Discount rate 3.01 % Short-term gold price $ 1,257 Long-term gold price $ 1,300 Gold production scenarios (in 000's of ounces) 438 - 1,814 At December 31, Range/Weighted Description 2016 Valuation technique Unobservable input average Asset backed commercial paper $ 18 Risk-adjusted indicative price Recoverability rate 97 % Batu Hijau contingent consideration $ 13 Monte Carlo Discount rate 17.10 % Short-term copper price $ 2.39 Long-term copper price $ 3.00 Boddington contingent consideration $ 14 Monte Carlo Discount rate 3.36 % Short-term gold price $ 1,221 Long-term gold price $ 1,300 Short-term copper price $ 2.39 Long-term copper price $ 3.00 Long-term Australian to U.S. dollar exchange rate $ 0.80 Holt royalty obligation $ 187 Monte Carlo Discount rate 3.36 % Short-term gold price $ 1,221 Long-term gold price $ 1,300 Gold production scenarios (in 000's of ounces) 332 - 1,570 |
Changes in the Fair Value of the Company's Level 3 Financial Assets | Asset Backed Batu Hijau Boddington Holt Commercial Contingent Total Contingent Royalty Total Paper (1) Consideration (2) Assets Consideration (3) Obligation (2) Liabilities Fair value at December 31, 2016 $ 18 $ 13 $ 31 $ 14 $ 187 $ 201 Settlements (18) — (18) (6) (6) (12) Revaluation — — — 5 59 64 Fair value at June 30, 2017 $ — $ 13 $ 13 $ 13 $ 240 $ 253 Asset Auction Backed Boddington Holt Rate Commercial Total Contingent Royalty Total Securities (1) Paper (1) Assets Consideration (3) Obligation (2) Liabilities Fair value at December 31, 2015 $ 7 $ 18 $ 25 $ 10 $ 129 $ 139 Settlements — — — — (5) (5) Revaluation — 2 2 2 76 78 Fair value at June 30, 2016 $ 7 $ 20 $ 27 $ 12 $ 200 $ 212 (1) The gain (loss) recognized is included in Other comprehensive income (loss) . (2) The gain (loss) recognized is included in Net income (loss) from discontinued operations . (3) The gain (loss) recognized is included in Other expense, net. . |
Changes in the Fair Value of the Company's Level 3 Financial Liabilities | Asset Backed Batu Hijau Boddington Holt Commercial Contingent Total Contingent Royalty Total Paper (1) Consideration (2) Assets Consideration (3) Obligation (2) Liabilities Fair value at December 31, 2016 $ 18 $ 13 $ 31 $ 14 $ 187 $ 201 Settlements (18) — (18) (6) (6) (12) Revaluation — — — 5 59 64 Fair value at June 30, 2017 $ — $ 13 $ 13 $ 13 $ 240 $ 253 Asset Auction Backed Boddington Holt Rate Commercial Total Contingent Royalty Total Securities (1) Paper (1) Assets Consideration (3) Obligation (2) Liabilities Fair value at December 31, 2015 $ 7 $ 18 $ 25 $ 10 $ 129 $ 139 Settlements — — — — (5) (5) Revaluation — 2 2 2 76 78 Fair value at June 30, 2016 $ 7 $ 20 $ 27 $ 12 $ 200 $ 212 (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) Net income (loss) from discontinued operations . |
DERIVATIVE INSTRUMENTS (Tables)
DERIVATIVE INSTRUMENTS (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
DERIVATIVE INSTRUMENTS | |
Fair Values of Derivative Instruments Designated as Hedges | Fair Values of Derivative Instruments At June 30, 2017 Other Other Other Other Current Non-current Current Non-current Assets Assets Liabilities Liabilities Foreign currency exchange contracts: A$ operating fixed forwards $ — $ — $ 8 $ — Diesel fixed forwards — — 3 — Total derivative instruments $ — $ — $ 11 $ — Fair Values of Derivative Instruments At December 31, 2016 Other Other Other Other Current Non-current Current Non-current Assets Assets Liabilities Liabilities Foreign currency exchange contracts: A$ operating fixed forwards $ — $ — $ 23 $ 1 Diesel fixed forwards 4 — 4 — Total derivative instruments $ 4 $ — $ 27 $ 1 |
Location and Amount of Gains (Losses) Reported in Consolidated Financial Statements | Foreign Currency Diesel Fixed Interest Exchange Contracts Forward Contracts Rate Contracts 2017 2016 2017 2016 2017 2016 For the three months ended June 30, Cash flow hedging relationships: Gain (loss) recognized in Other comprehensive income (loss) (effective portion) $ — $ (3) $ (3) $ 7 $ — $ — Gain (loss) reclassified from Accumulated other comprehensive income (loss) into income (loss) (effective portion) (1) $ (7) $ (10) $ (1) $ (5) $ (3) $ (5) Gain (loss) reclassified from Accumulated other comprehensive income (loss) into income (loss) (ineffective portion) (2) $ — $ — $ — $ 1 $ — $ — For the six months ended June 30, Cash flow hedging relationships: Gain (loss) recognized in Other comprehensive income (loss) (effective portion) $ 4 $ 4 $ (6) $ 5 $ — $ — Gain (loss) reclassified from Accumulated other comprehensive income (loss) into income (loss) (effective portion) (1) $ (15) $ (20) $ (3) $ (14) $ (5) $ (8) Gain (loss) reclassified from Accumulated other comprehensive income (loss) into income (loss) (ineffective portion) (2) $ — $ — $ — $ 1 $ — $ — (1) The gain (loss) recognized for the effective portion of cash flow hedges is included in Costs 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 2017 2018 Total/Average A$ Operating Fixed Forward Contracts: A$ notional (millions) 46 6 52 Average rate ($/A$) 0.93 0.92 0.93 Expected hedge ratio 7 % 4 % |
Cash Flow Hedges | Diesel forward contracts | |
DERIVATIVE INSTRUMENTS | |
Outstanding Derivative Contracts | Expected Maturity Date 2017 2018 Total/Average Diesel Fixed Forward Contracts: Diesel gallons (millions) 12 9 21 Average rate ($/gallon) 1.58 1.60 1.59 Expected hedge ratio 54 % 22 % |
INVESTMENTS (Tables)
INVESTMENTS (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
INVESTMENTS | |
Schedule of reconciliation of cost to fair value for Available-for-sale and other investments | At June 30, 2017 Cost/Equity Unrealized Fair/Equity Basis Gain Loss Basis Current: Marketable equity securities $ 48 $ 19 $ (6) $ 61 Non-current: Marketable equity securities: Continental Gold Inc. $ 109 $ 1 $ — $ 110 Other marketable equity securities 23 3 (1) 25 132 4 (1) 135 Other investments, at cost 7 — — 7 Equity method investments: TMAC Resources Inc. (28.80%) 104 — — 104 Minera La Zanja S.R.L. (46.94%) 54 — — 54 Euronimba Ltd. (43.50%) 6 — — 6 164 — — 164 $ 303 $ 4 $ (1) $ 306 At December 31, 2016 Cost/Equity Unrealized Fair/Equity Basis Gain Loss Basis Current: Marketable equity securities $ 33 $ 27 $ (4) $ 56 Non-current: Marketable debt securities: Asset backed commercial paper $ 16 $ 2 $ — $ 18 Marketable equity securities 18 2 — 20 Other investments, at cost 6 — — 6 Equity method investments: TMAC Resources Inc. (29.00%) 108 — — 108 Minera La Zanja S.R.L. (46.94%) 71 — — 71 Euronimba Ltd. (43.50%) 4 — — 4 183 — — 183 $ 223 $ 4 $ — $ 227 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Inventories | |
Summary of Inventories | At June 30, At December 31, 2017 2016 Materials and supplies $ 410 $ 391 In-process 139 130 Concentrate and copper cathode 83 67 Precious metals 33 29 $ 665 $ 617 |
STOCKPILES AND ORE ON LEACH P46
STOCKPILES AND ORE ON LEACH PADS (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
STOCKPILES AND ORE ON LEACH PADS | |
Stockpiles and Ore on Leach Pads | At June 30, At December 31, 2017 2016 Current: Stockpiles $ 409 $ 393 Ore on leach pads 412 370 $ 821 $ 763 Non-current: Stockpiles $ 1,454 $ 1,506 Ore on leach pads 327 358 $ 1,781 $ 1,864 |
Stockpiles and Ore on Leach Pads, by Segment | At June 30, At December 31, 2017 2016 Stockpiles and ore on leach pads: Carlin $ 463 $ 421 Phoenix 71 80 Twin Creeks 338 328 Long Canyon 37 9 CC&V 331 369 Yanacocha 309 367 Merian 26 27 Boddington 408 394 Tanami 14 19 Kalgoorlie 120 113 Ahafo 392 386 Akyem 93 114 $ 2,602 $ 2,627 |
OTHER LIABILITIES (Tables)
OTHER LIABILITIES (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
OTHER LIABILITIES | |
Other Liabilities | At June 30, At December 31, 2017 2016 Other current liabilities: Reclamation and remediation liabilities $ 69 $ 61 Accrued operating costs 68 99 Accrued interest 56 57 Accrued capital expenditures 50 53 Royalties 35 52 Holt royalty obligation 14 13 Derivative instruments 11 27 Taxes other than income and mining 7 8 Boddington contingent consideration 5 3 Other 26 34 $ 341 $ 407 Other non-current liabilities: Holt royalty obligation $ 226 $ 174 Income and mining taxes 52 50 Power supply agreements 31 31 Social development obligations 24 25 Boddington contingent consideration 8 11 Derivative instruments — 1 Other 35 34 $ 376 $ 326 |
CHANGES IN EQUITY (Tables)
CHANGES IN EQUITY (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
CHANGES IN EQUITY | |
Changes in Equity | Six Months Ended June 30, 2017 2016 Common stock: At beginning of period $ 849 $ 847 Stock-based awards 4 2 At end of period 853 849 Additional paid-in capital: At beginning of period 9,490 9,427 Stock-based awards 18 30 At end of period 9,508 9,457 Accumulated other comprehensive income (loss): At beginning of period (334) (334) Other comprehensive income (loss) 16 (7) At end of period (318) (341) Retained earnings: At beginning of period 716 1,410 Net income (loss) attributable to Newmont stockholders 223 75 Dividends paid (54) (27) At end of period 885 1,458 Noncontrolling interests: At beginning of period 1,153 2,942 Net income (loss) attributable to noncontrolling interests (14) 122 Distributions declared to noncontrolling interests (1) (71) — Cash calls requested from noncontrolling interests (2) 46 43 Dividends paid to noncontrolling interests — (146) Other (2) (1) At end of period 1,112 2,960 Total equity $ 12,040 $ 14,383 (1) Distributions declared to noncontrolling interests of $71 for the six months ended June 30, 2017 represents distributions declared to Staatsolie from Merian. The Company paid $80 in distributions during the six months ended June 30, 2017 related to current and prior period distributions declared. (2) Cash calls requested from noncontrolling interests of $46 and $43 for the six months ended June 30, 2017 and 2016, respectively, represents cash calls requested and paid from Staatsolie for the Merian mine. Staatsolie prepaid an additional $7 as of June 30, 2016. |
RECLASSIFICATIONS OUT OF ACCU49
RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
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, 2016 $ (101) $ 118 $ (223) $ (128) $ (334) Change in other comprehensive income (loss) before reclassifications (11) 4 — (1) (8) Reclassifications from accumulated other comprehensive income (loss) — — 9 15 24 Net current-period other comprehensive income (loss) (11) 4 9 14 16 Balance at June 30, 2017 $ (112) $ 122 $ (214) $ (114) $ (318) |
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 Operations Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Marketable securities adjustments: Sale of marketable securities $ — $ — $ — $ (103) Other income, net Total before tax — — — (103) Tax benefit (expense) — — — — Net of tax $ — $ — $ — $ (103) Pension and other post-retirement benefit adjustments: Amortization $ 4 $ 4 $ 10 $ 9 (1) Settlements — — 4 — Other expense, net Total before tax 4 4 14 9 Tax benefit (expense) (1) (1) (5) (3) Net of tax $ 3 $ 3 $ 9 $ 6 Hedge instruments adjustments: Operating cash flow hedges (effective portion) $ 8 $ 15 $ 18 $ 34 Costs applicable to sales Operating cash flow hedges (ineffective portion) — (1) — (1) Other income, net Interest rate contracts 3 5 5 8 Interest expense, net Total before tax 11 19 23 41 Tax benefit (expense) (4) (5) (8) (13) Net of tax $ 7 $ 14 $ 15 $ 28 Total reclassifications for the period, net of tax $ 10 $ 17 $ 24 $ (69) (1) This accumulated other comprehensive income (loss) component is included in General and administrative and costs that benefit the inventory/production process. Refer to Note 2 to the Consolidated Financial Statements for the year ended December 31, 2016 filed February 21, 2017 on Form 10-K for information on costs that benefit the inventory/production process. |
NET CHANGE IN OPERATING ASSET50
NET CHANGE IN OPERATING ASSETS AND LIABILITIES (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
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, 2017 2016 Decrease (increase) in operating assets: Trade and other accounts receivables $ 9 $ 79 Inventories, stockpiles and ore on leach pads (135) (193) Other assets — (23) Increase (decrease) in operating liabilities: Accounts payable (21) (13) Reclamation and remediation liabilities (32) (16) Other accrued liabilities (76) (65) $ (255) $ (231) |
CONDENSED CONSOLIDATING FINAN51
CONDENSED CONSOLIDATING FINANCIAL STATEMENTS (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
CONDENSED CONSOLIDATING FINANCIAL STATEMENTS | |
Condensed Consolidating Statement of Operation | Three Months Ended June 30, 2017 (Issuer) (Guarantor) (Non-Guarantor) Newmont Newmont Mining Mining Newmont Other Corporation Condensed Consolidating Statement of Operations Corporation USA Subsidiaries Eliminations Consolidated Sales $ — $ 517 $ 1,358 $ — $ 1,875 Costs and expenses Costs applicable to sales (1) — 280 719 — 999 Depreciation and amortization 1 82 225 — 308 Reclamation and remediation — 3 41 — 44 Exploration — 13 38 — 51 Advanced projects, research and development — 2 30 — 32 General and administrative — 18 40 — 58 Other expense, net — 2 12 — 14 1 400 1,105 — 1,506 Other income (expense) Other income, net 23 3 5 — 31 Interest income - intercompany 23 24 15 (62) — Interest expense - intercompany (14) (4) (44) 62 — Interest expense, net (59) (1) (4) — (64) (27) 22 (28) — (33) Income (loss) before income and mining tax and other items (28) 139 225 — 336 Income and mining tax benefit (expense) 9 (22) (154) — (167) Equity income (loss) of affiliates 196 (150) (13) (36) (3) Net income (loss) from continuing operations 177 (33) 58 (36) 166 Net income (loss) from discontinued operations — — (15) — (15) Net income (loss) 177 (33) 43 (36) 151 Net loss (income) attributable to noncontrolling interests Continuing operations — — 26 — 26 Discontinued operations — — — — — — — 26 — 26 Net income (loss) attributable to Newmont stockholders $ 177 $ (33) 69 (36) 177 Comprehensive income (loss) $ 181 $ (31) 41 (36) 155 Comprehensive loss (income) attributable to noncontrolling interests — — 26 — 26 Comprehensive income (loss) attributable to Newmont stockholders $ 181 $ (31) 67 (36) 181 (1) Excludes Depreciation and amortization and Reclamation and remediation . Three Months Ended June 30, 2016 (Issuer) (Guarantor) (Non-Guarantor) Newmont Newmont Mining Mining Newmont Other Corporation Condensed Consolidating Statement of Operations Corporation USA Subsidiaries Eliminations Consolidated Sales $ — $ 459 $ 1,210 $ — $ 1,669 Costs and expenses Costs applicable to sales (1) — 284 618 — 902 Depreciation and amortization 2 76 203 — 281 Reclamation and remediation — 4 17 — 21 Exploration — 10 28 — 38 Advanced projects, research and development — 3 41 — 44 General and administrative — 23 39 — 62 Other expense, net — 9 6 — 15 2 409 952 — 1,363 Other income (expense) Other income, net (9) 1 9 — 1 Interest income - intercompany 31 — 10 (41) — Interest expense - intercompany (10) — (31) 41 — Interest expense, net (64) — (2) — (66) (52) 1 (14) — (65) Income (loss) before income and mining tax and other items (54) 51 244 — 241 Income and mining tax benefit (expense) (45) (5) (188) — (238) Equity income (loss) of affiliates 122 (174) (5) 52 (5) Net income (loss) from continuing operations 23 (128) 51 52 (2) Net income (loss) from discontinued operations — — 64 — 64 Net income (loss) 23 (128) 115 52 62 Net loss (income) attributable to noncontrolling interests Continuing operations — — 16 — 16 Discontinued operations — — (55) — (55) — — (39) — (39) Net income (loss) attributable to Newmont stockholders $ 23 $ (128) $ 76 $ 52 $ 23 Comprehensive income (loss) $ 68 $ (116) $ 145 $ 10 $ 107 Comprehensive loss (income) attributable to noncontrolling interests — — (39) — (39) Comprehensive income (loss) attributable to Newmont stockholders $ 68 $ (116) $ 106 $ 10 $ 68 (1) Excludes Depreciation and amortization and Reclamation and remediation . Six Months Ended June 30, 2017 (Issuer) (Guarantor) (Non-Guarantor) Newmont Newmont Mining Mining Newmont Other Corporation Condensed Consolidating Statement of Operations Corporation USA Subsidiaries Eliminations Consolidated Sales $ — $ 920 $ 2,614 $ — $ 3,534 Costs and expenses Costs applicable to sales (1) — 565 1,367 — 1,932 Depreciation and amortization 2 161 438 — 601 Reclamation and remediation — 7 67 — 74 Exploration — 22 65 — 87 Advanced projects, research and development — 3 55 — 58 General and administrative — 35 78 — 113 Other expense, net — 8 23 — 31 2 801 2,093 — 2,896 Other income (expense) Other income, net 26 3 (7) — 22 Interest income - intercompany 47 24 22 (93) — Interest expense - intercompany (22) (4) (67) 93 — Interest expense, net (121) (3) (7) — (131) (70) 20 (59) — (109) Income (loss) before income and mining tax and other items (72) 139 462 — 529 Income and mining tax benefit (expense) 25 (22) (280) — (277) Equity income (loss) of affiliates 270 (234) (14) (27) (5) Net income (loss) from continuing operations 223 (117) 168 (27) 247 Net income (loss) from discontinued operations — — (38) — (38) Net income (loss) 223 (117) 130 (27) 209 Net loss (income) attributable to noncontrolling interests Continuing operations — — 14 — 14 Discontinued operations — — — — — — — 14 — 14 Net income (loss) attributable to Newmont stockholders $ 223 $ (117) $ 144 $ (27) $ 223 Comprehensive income (loss) $ 239 $ (110) $ 123 $ (27) $ 225 Comprehensive loss (income) attributable to noncontrolling interests — — 14 — 14 Comprehensive income (loss) attributable to Newmont stockholders $ 239 $ (110) $ 137 $ (27) $ 239 (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 Operations Corporation USA Subsidiaries Eliminations Consolidated Sales $ — $ 930 $ 2,201 $ — $ 3,131 Costs and expenses Costs applicable to sales (1) — 590 1,163 — 1,753 Depreciation and amortization 2 160 395 — 557 Reclamation and remediation — 7 35 — 42 Exploration — 16 52 — 68 Advanced projects, research and development — 5 66 — 71 General and administrative — 40 75 — 115 Other expense, net — 13 20 — 33 2 831 1,806 — 2,639 Other income (expense) Other income, net — 1 96 — 97 Interest income - intercompany 61 — 19 (80) — Interest expense - intercompany (18) — (62) 80 — Interest expense, net (135) (2) (3) — (140) (92) (1) 50 — (43) Income (loss) before income and mining tax and other items (94) 98 445 — 449 Income and mining tax benefit (expense) 30 (16) (479) — (465) Equity income (loss) of affiliates 139 (448) (3) 302 (10) Net income (loss) from continuing operations 75 (366) (37) 302 (26) Net income (loss) from discontinued operations — — 223 — 223 Net income (loss) 75 (366) 186 302 197 Net loss (income) attributable to noncontrolling interests Continuing operations — — 28 — 28 Discontinued operations — — (150) — (150) — — (122) — (122) Net income (loss) attributable to Newmont stockholders $ 75 $ (366) $ 64 $ 302 $ 75 Comprehensive income (loss) $ 68 $ (348) $ 155 $ 315 $ 190 Comprehensive loss (income) attributable to noncontrolling interests — — (122) — (122) Comprehensive income (loss) attributable to Newmont stockholders $ 68 $ (348) $ 33 $ 315 $ 68 (1) Excludes Depreciation and amortization and Reclamation and remediation . |
Condensed Consolidating Statement of Cash Flows | Six Months Ended June 30, 2017 (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 (used in) operating activities of continuing operations $ (116) $ 222 $ 802 $ — $ 908 Net cash provided by (used in) operating activities of discontinued operations — — (9) — (9) Net cash provided by (used in) operating activities (116) 222 793 — 899 Investing activities: Additions to property, plant and mine development — (121) (242) — (363) Purchase of investments (109) — (4) — (113) Proceeds from sales of investments — — 19 — 19 Other — 2 9 — 11 Net cash provided by (used in) investing activities of continuing operations (109) (119) (218) — (446) Net cash provided by (used in) investing activities of discontinued operations — — — — — Net cash provided by (used in) investing activities (109) (119) (218) — (446) Financing activities: Distributions to noncontrolling interests — — (80) — (80) Dividends paid to common stockholders (54) — — — (54) Funding from noncontrolling interests — — 46 — 46 Payments for withholding of employee taxes related to stock-based compensation — (13) — — (13) Repayment of debt — (1) (2) — (3) Net intercompany borrowings (repayments) 282 (90) (192) — — Other (3) — — — (3) Net cash provided by (used in) financing activities of continuing operations 225 (104) (228) — (107) Net cash provided by (used in) financing activities of discontinued operations — — — — — Net cash provided by (used in) financing activities 225 (104) (228) — (107) Effect of exchange rate changes on cash — — 3 — 3 Net change in cash and cash equivalents — (1) 350 — 349 Less net cash provided by (used in) Batu Hijau discontinued operations — — — — — — (1) 350 — 349 Cash and cash equivalents at beginning of period — 1 2,755 — 2,756 Cash and cash equivalents at end of period $ — $ — $ 3,105 $ — $ 3,105 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 (used in) operating activities of continuing operations $ 720 $ 308 $ 659 $ (862) $ 825 Net cash provided by (used in) operating activities of discontinued operations — — 478 — 478 Net cash provided by (used in) operating activities 720 308 1,137 (862) 1,303 Investing activities: Additions to property, plant and mine development — (129) (434) — (563) Proceeds from sales of investments — — 184 — 184 Purchases of investments — — (2) — (2) Other — — 4 — 4 Net cash provided by (used in) investing activities of continuing operations — (129) (248) — (377) Net cash provided by (used in) investing activities of discontinued operations — — (28) — (28) Net cash provided by (used in) investing activities — (129) (276) — (405) Financing activities: Dividends paid to common stockholders (27) (862) — 862 (27) Funding from noncontrolling interests — — 50 — 50 Payments for withholding of employee taxes related to stock-based compensation — (4) — — (4) Repayment of debt (498) (1) (2) — (501) Dividends paid to noncontrolling interests — — (146) — (146) Net intercompany borrowings (repayments) (195) (492) 687 — — Other — — (1) — (1) Net cash provided by (used in) financing activities of continuing operations (720) (1,359) 588 862 (629) Net cash provided by (used in) financing activities of discontinued operations — — (153) — (153) Net cash provided by (used in) financing activities (720) (1,359) 435 862 (782) Effect of exchange rate changes on cash — — 4 — 4 Net change in cash and cash equivalents — (1,180) 1,300 — 120 Less net cash provided by (used in) Batu Hijau discontinued operations — — 302 — 302 — (1,180) 998 — (182) Cash and cash equivalents at beginning of period — 1,181 1,182 — 2,363 Cash and cash equivalents at end of period $ — $ 1 $ 2,180 $ — $ 2,181 |
Condensed Consolidating Balance Sheet | At June 30, 2017 (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 $ — $ — $ 3,105 $ — $ 3,105 Trade receivables — 36 122 — 158 Other accounts receivables — — 179 — 179 Intercompany receivable 8,952 6,280 12,023 (27,255) — Investments — — 61 — 61 Inventories — 167 498 — 665 Stockpiles and ore on leach pads — 246 575 — 821 Other current assets — 39 70 — 109 Current assets 8,952 6,768 16,633 (27,255) 5,098 Property, plant and mine development, net 20 3,093 9,181 (32) 12,262 Investments 110 9 187 — 306 Investments in subsidiaries 13,215 303 — (13,518) — Stockpiles and ore on leach pads — 615 1,166 — 1,781 Deferred income tax assets 504 64 1,167 (490) 1,245 Non-current intercompany receivable 2,048 525 949 (3,522) — Other non-current assets — 223 227 — 450 Total assets $ 24,849 $ 11,600 $ 29,510 $ (44,817) $ 21,142 Liabilities: Debt $ 573 $ 2 $ 2 $ — $ 577 Accounts payable — 60 244 — 304 Intercompany payable 9,163 4,340 13,752 (27,255) — Employee-related benefits — 96 127 — 223 Income and mining taxes — 15 112 — 127 Other current liabilities 56 74 211 — 341 Current liabilities 9,792 4,587 14,448 (27,255) 1,572 Debt 4,039 3 4 — 4,046 Reclamation and remediation liabilities — 252 1,808 — 2,060 Deferred income tax liabilities 9 92 1,003 (490) 614 Employee-related benefits — 278 156 — 434 Non-current intercompany payable 81 — 3,473 (3,554) — Other non-current liabilities — 18 358 — 376 Total liabilities 13,921 5,230 21,250 (31,299) 9,102 Equity: Newmont stockholders’ equity 10,928 6,370 7,148 (13,518) 10,928 Noncontrolling interests — — 1,112 — 1,112 Total equity 10,928 6,370 8,260 (13,518) 12,040 Total liabilities and equity $ 24,849 $ 11,600 $ 29,510 $ (44,817) $ 21,142 At December 31, 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 $ — $ 1 $ 2,755 $ — $ 2,756 Trade receivables — 21 106 — 127 Other accounts receivables — 2 214 — 216 Intercompany receivable 7,255 6,065 11,347 (24,667) — Investments — — 56 — 56 Inventories — 155 462 — 617 Stockpiles and ore on leach pads — 224 539 — 763 Other current assets — 83 59 — 142 Current assets 7,255 6,551 15,538 (24,667) 4,677 Property, plant and mine development, net 20 3,144 9,355 (34) 12,485 Investments — 8 219 — 227 Investments in subsidiaries 13,222 537 — (13,759) — Stockpiles and ore on leach pads — 599 1,265 — 1,864 Deferred income tax assets 477 48 1,296 (490) 1,331 Non-current intercompany receivable 2,219 606 955 (3,780) — Other non-current assets — 224 223 — 447 Total assets $ 23,193 $ 11,717 $ 28,851 $ (42,730) $ 21,031 Liabilities: Debt $ 560 $ 3 $ 3 $ — $ 566 Accounts payable — 62 258 — 320 Intercompany payable 7,720 4,795 12,152 (24,667) — Employee-related benefits — 148 156 — 304 Income and mining taxes — 13 140 — 153 Other current liabilities 62 109 236 — 407 Current liabilities 8,342 5,130 12,945 (24,667) 1,750 Debt 4,038 4 7 — 4,049 Reclamation and remediation liabilities — 247 1,782 — 2,029 Deferred income tax liabilities 9 93 980 (490) 592 Employee-related benefits — 269 142 — 411 Non-current intercompany payable 83 — 3,731 (3,814) — Other non-current liabilities — 21 305 — 326 Total liabilities 12,472 5,764 19,892 (28,971) 9,157 Equity: Newmont stockholders’ equity 10,721 5,953 7,806 (13,759) 10,721 Noncontrolling interests — — 1,153 — 1,153 Total equity 10,721 5,953 8,959 (13,759) 11,874 Total liabilities and equity $ 23,193 $ 11,717 $ 28,851 $ (42,730) $ 21,031 |
BASIS OF PRESENTATION - Definit
BASIS OF PRESENTATION - Definitive Agreement (Details) | Nov. 02, 2016 |
Batu Hijau share sale and purchase agreement | PTNNT - Batu Hijau | Discontinued operations disposed of by sale | PTNNT - Batu Hijau | |
Agreement terms and other information | |
Ownership interest held (as a percent) | 48.50% |
SUMMARY OF SIGNIFICANT ACCOUN53
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Recently Issued Accounting Pronouncements (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Recently Adopted Accounting Pronouncements | ||
Net cash provided by (used in) continuing operating activities | $ 908 | $ 825 |
Net cash provided by (used in) financing activities of continuing operations | $ (107) | (629) |
ASU No. 2016-09 - Stock-based compensation | Reclassified | ||
Recently Adopted Accounting Pronouncements | ||
Net cash provided by (used in) continuing operating activities | 4 | |
Net cash provided by (used in) financing activities of continuing operations | $ (4) |
DISCONTINUED OPERATIONS - Summa
DISCONTINUED OPERATIONS - Summary (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Net income (loss) from discontinued operations, net of tax | ||||
Income (loss) from discontinued operations, net of tax | $ (15) | $ 64 | $ (38) | $ 223 |
Discontinued operations - held-for-sale or disposed of | ||||
Net income (loss) from discontinued operations, net of tax | ||||
Income (loss) from discontinued operations, net of tax | (15) | 64 | (38) | 223 |
PTNNT - Batu Hijau | Discontinued operations - Held-for-sale | ||||
Net income (loss) from discontinued operations, net of tax | ||||
Batu Hijau operations | 91 | 276 | ||
Holt royalty obligation | Holloway Mining Company | Discontinued operations disposed of by sale | ||||
Net income (loss) from discontinued operations, net of tax | ||||
Income (loss) from discontinued operations, net of tax | $ (15) | $ (27) | $ (38) | $ (53) |
DISCONTINUED OPERATIONS - Batu
DISCONTINUED OPERATIONS - Batu Hijau Other Information (Details) | Nov. 02, 2016 |
Batu Hijau share sale and purchase agreement | PTNNT - Batu Hijau | PTNNT - Batu Hijau | Discontinued operations disposed of by sale | |
Other information | |
Ownership interest held (as a percent) | 48.50% |
DISCONTINUED OPERATIONS - Bat56
DISCONTINUED OPERATIONS - Batu Hijau Net Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Costs and expenses | ||||
Net loss (income) attributable to noncontrolling interests, net of tax | $ (55) | $ (150) | ||
Net income (loss) from discontinued operations attributable to Newmont stockholders | $ (15) | 9 | $ (38) | 73 |
PTNNT - Batu Hijau | Discontinued operations - Held-for-sale | ||||
Net income (loss) from discontinued operations, net of tax | ||||
Sales | 369 | 939 | ||
Costs and expenses | ||||
Costs applicable to sales (1) | 157 | 387 | ||
Depreciation and amortization | 33 | 79 | ||
Reclamation and remediation | 5 | 9 | ||
Advanced projects, research and development | 1 | |||
General and administrative | 2 | 6 | ||
Other expense (income), net | 5 | 3 | ||
Total Costs and expenses | 202 | 485 | ||
Interest expense, net | (5) | (10) | ||
Income (loss) before income and mining tax and other items | 162 | 444 | ||
Income and mining tax benefit (expense) | (71) | (168) | ||
Net income (loss) from discontinued operations | 91 | 276 | ||
Net loss (income) attributable to noncontrolling interests, net of tax | (55) | (150) | ||
Net income (loss) from discontinued operations attributable to Newmont stockholders | $ 36 | $ 126 |
DISCONTINUED OPERATIONS - Bat57
DISCONTINUED OPERATIONS - Batu Hijau Cash Flows (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Cash flows | ||
Net cash provided by (used in) operating activities | $ (9) | $ 478 |
Net cash provided by (used in) investing activities | (28) | |
Net cash provided by (used in) financing activities | (153) | |
PTNNT - Batu Hijau | Discontinued operations - Held-for-sale | ||
Cash flows | ||
Net cash provided by (used in) operating activities | 483 | |
Net cash provided by (used in) investing activities | (28) | |
Net cash provided by (used in) financing activities | (153) | |
Net cash provided by (used in) discontinued operations | $ 302 |
DISCONTINUED OPERATIONS - Holt
DISCONTINUED OPERATIONS - Holt Royalty Obligation (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Disposal group | |||||
Income (loss) from discontinued operations, net of tax | $ (15) | $ 64 | $ (38) | $ 223 | |
Holloway Mining Company | Discontinued operations disposed of by sale | Holt royalty obligation | |||||
Disposal group | |||||
Contingent royalty | 240 | 240 | $ 187 | ||
Income (loss) from discontinued operations, net of tax | (15) | (27) | (38) | (53) | |
Income and mining tax benefit (expense) | $ 8 | $ (12) | 21 | (23) | |
Royalty paid | $ 6 | $ 5 |
SEGMENT INFORMATION - Financial
SEGMENT INFORMATION - Financial Information Table (Details) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2017USD ($) | Jun. 30, 2016USD ($) | Jun. 30, 2017USD ($)segment | Jun. 30, 2016USD ($) | Dec. 31, 2016USD ($) | ||
Segment Information | ||||||
Sales | $ 1,875 | $ 1,669 | $ 3,534 | $ 3,131 | ||
Costs applicable to sales | [1] | 999 | 902 | 1,932 | 1,753 | |
Depreciation and amortization | 308 | 281 | 601 | 557 | ||
Advanced Projects, Research and Development, and Exploration | 83 | 82 | 145 | 139 | ||
Income (Loss) before Income and Mining Tax and Other Items | 336 | 241 | 529 | 449 | ||
Total Assets | 21,142 | 21,142 | $ 21,031 | |||
Capital Expenditures | 192 | 275 | 360 | 538 | ||
Additional disclosures | ||||||
Increase (decrease) in accrued capital expenditures | 9 | (8) | (3) | (25) | ||
Consolidated capital expenditures on a cash basis | 183 | 283 | $ 363 | 563 | ||
Operating Segments | ||||||
Segment Information | ||||||
Number of operating segments | segment | 4 | |||||
Corporate and other | ||||||
Segment Information | ||||||
Depreciation and amortization | 3 | 2 | $ 5 | 5 | ||
Advanced Projects, Research and Development, and Exploration | 14 | 13 | 26 | 25 | ||
Income (Loss) before Income and Mining Tax and Other Items | (111) | (139) | (245) | (175) | ||
Capital Expenditures | 2 | 2 | 4 | 4 | ||
North America | Operating Segments | ||||||
Segment Information | ||||||
Sales | 749 | 628 | 1,359 | 1,183 | ||
Costs applicable to sales | 380 | 361 | 763 | 714 | ||
Depreciation and amortization | 131 | 103 | 252 | 203 | ||
Advanced Projects, Research and Development, and Exploration | 22 | 20 | 40 | 35 | ||
Income (Loss) before Income and Mining Tax and Other Items | 205 | 137 | 286 | 212 | ||
Capital Expenditures | 69 | 114 | 141 | 217 | ||
North America | Operating Segments | Carlin | ||||||
Segment Information | ||||||
Sales | 279 | 256 | 532 | 502 | ||
Costs applicable to sales | 170 | 184 | 363 | 373 | ||
Depreciation and amortization | 46 | 43 | 96 | 92 | ||
Advanced Projects, Research and Development, and Exploration | 5 | 4 | 8 | 7 | ||
Income (Loss) before Income and Mining Tax and Other Items | 55 | 22 | 60 | 24 | ||
Capital Expenditures | 48 | 43 | 96 | 79 | ||
North America | Operating Segments | Phoenix | ||||||
Segment Information | ||||||
Sales | 91 | 84 | 170 | 169 | ||
Costs applicable to sales | 62 | 61 | 123 | 132 | ||
Depreciation and amortization | 16 | 19 | 32 | 39 | ||
Advanced Projects, Research and Development, and Exploration | 3 | 1 | 4 | 1 | ||
Income (Loss) before Income and Mining Tax and Other Items | 9 | 3 | 7 | (8) | ||
Capital Expenditures | 4 | 3 | 10 | 7 | ||
North America | Operating Segments | Phoenix | Gold | ||||||
Segment Information | ||||||
Sales | 67 | 62 | 120 | 126 | ||
Costs applicable to sales | 46 | 39 | 89 | 88 | ||
Depreciation and amortization | 12 | 12 | 23 | 27 | ||
North America | Operating Segments | Phoenix | Copper | ||||||
Segment Information | ||||||
Sales | 24 | 22 | 50 | 43 | ||
Costs applicable to sales | 16 | 22 | 34 | 44 | ||
Depreciation and amortization | 4 | 7 | 9 | 12 | ||
North America | Operating Segments | Twin Creeks | ||||||
Segment Information | ||||||
Sales | 156 | 144 | 249 | 303 | ||
Costs applicable to sales | 61 | 58 | 108 | 118 | ||
Depreciation and amortization | 17 | 13 | 30 | 26 | ||
Advanced Projects, Research and Development, and Exploration | 2 | 2 | 4 | 4 | ||
Income (Loss) before Income and Mining Tax and Other Items | 72 | 70 | 103 | 153 | ||
Capital Expenditures | 9 | 14 | 17 | 20 | ||
North America | Operating Segments | Long Canyon | ||||||
Segment Information | ||||||
Sales | 57 | 96 | ||||
Costs applicable to sales | 13 | 25 | ||||
Depreciation and amortization | 18 | 31 | ||||
Advanced Projects, Research and Development, and Exploration | 5 | 7 | 10 | 13 | ||
Income (Loss) before Income and Mining Tax and Other Items | 21 | (7) | 30 | (13) | ||
Capital Expenditures | 3 | 37 | 7 | 73 | ||
North America | Operating Segments | Cripple Creek & Victor mine | ||||||
Segment Information | ||||||
Sales | 166 | 144 | 312 | 209 | ||
Costs applicable to sales | 74 | 58 | 144 | 91 | ||
Depreciation and amortization | 33 | 28 | 62 | 46 | ||
Advanced Projects, Research and Development, and Exploration | 3 | 1 | 7 | 4 | ||
Income (Loss) before Income and Mining Tax and Other Items | 53 | 55 | 96 | 65 | ||
Capital Expenditures | 4 | 15 | 8 | 36 | ||
North America | Operating Segments | Other North America | ||||||
Segment Information | ||||||
Depreciation and amortization | 1 | 1 | ||||
Advanced Projects, Research and Development, and Exploration | 4 | 5 | 7 | 6 | ||
Income (Loss) before Income and Mining Tax and Other Items | (5) | (6) | (10) | (9) | ||
Capital Expenditures | 1 | 2 | 3 | 2 | ||
South America | Operating Segments | ||||||
Segment Information | ||||||
Sales | 299 | 194 | 611 | 405 | ||
Costs applicable to sales | 198 | 120 | 365 | 248 | ||
Depreciation and amortization | 63 | 63 | 124 | 136 | ||
Advanced Projects, Research and Development, and Exploration | 21 | 32 | 39 | 50 | ||
Income (Loss) before Income and Mining Tax and Other Items | (22) | (43) | 27 | (69) | ||
Capital Expenditures | 31 | 84 | 58 | 180 | ||
South America | Operating Segments | Yanacocha | ||||||
Segment Information | ||||||
Sales | 149 | 194 | 328 | 405 | ||
Costs applicable to sales | 134 | 120 | 253 | 248 | ||
Depreciation and amortization | 34 | 59 | 70 | 128 | ||
Advanced Projects, Research and Development, and Exploration | 8 | 11 | 12 | 20 | ||
Income (Loss) before Income and Mining Tax and Other Items | (60) | (19) | (52) | (30) | ||
Capital Expenditures | 9 | 24 | 20 | 38 | ||
South America | Operating Segments | Merian | ||||||
Segment Information | ||||||
Sales | 150 | 283 | ||||
Costs applicable to sales | 64 | 112 | ||||
Depreciation and amortization | 26 | 47 | 1 | |||
Advanced Projects, Research and Development, and Exploration | 4 | 11 | 8 | 14 | ||
Income (Loss) before Income and Mining Tax and Other Items | 54 | (10) | 114 | (14) | ||
Capital Expenditures | 22 | 60 | 38 | 142 | ||
South America | Operating Segments | Other South America | ||||||
Segment Information | ||||||
Depreciation and amortization | 3 | 4 | 7 | 7 | ||
Advanced Projects, Research and Development, and Exploration | 9 | 10 | 19 | 16 | ||
Income (Loss) before Income and Mining Tax and Other Items | (16) | (14) | (35) | (25) | ||
Australia | Operating Segments | ||||||
Segment Information | ||||||
Sales | 550 | 586 | 1,019 | 1,046 | ||
Costs applicable to sales | 288 | 305 | 533 | 563 | ||
Depreciation and amortization | 56 | 64 | 108 | 120 | ||
Advanced Projects, Research and Development, and Exploration | 10 | 7 | 16 | 12 | ||
Income (Loss) before Income and Mining Tax and Other Items | 198 | 203 | 332 | 333 | ||
Capital Expenditures | 48 | 50 | 92 | 88 | ||
Australia | Operating Segments | Boddington | ||||||
Segment Information | ||||||
Sales | 314 | 285 | 587 | 519 | ||
Costs applicable to sales | 175 | 174 | 318 | 308 | ||
Depreciation and amortization | 35 | 35 | 65 | 63 | ||
Advanced Projects, Research and Development, and Exploration | 1 | 1 | ||||
Income (Loss) before Income and Mining Tax and Other Items | 96 | 75 | 182 | 139 | ||
Capital Expenditures | 14 | 12 | 29 | 23 | ||
Australia | Operating Segments | Boddington | Gold | ||||||
Segment Information | ||||||
Sales | 262 | 250 | 490 | 454 | ||
Costs applicable to sales | 147 | 141 | 269 | 252 | ||
Depreciation and amortization | 29 | 29 | 55 | 52 | ||
Australia | Operating Segments | Boddington | Copper | ||||||
Segment Information | ||||||
Sales | 52 | 35 | 97 | 65 | ||
Costs applicable to sales | 28 | 33 | 49 | 56 | ||
Depreciation and amortization | 6 | 6 | 10 | 11 | ||
Australia | Operating Segments | Tanami | ||||||
Segment Information | ||||||
Sales | 123 | 179 | 215 | 299 | ||
Costs applicable to sales | 58 | 64 | 108 | 123 | ||
Depreciation and amortization | 15 | 23 | 31 | 42 | ||
Advanced Projects, Research and Development, and Exploration | 6 | 3 | 9 | 6 | ||
Income (Loss) before Income and Mining Tax and Other Items | 55 | 89 | 75 | 127 | ||
Capital Expenditures | 28 | 33 | 52 | 57 | ||
Australia | Operating Segments | Kalgoorlie | ||||||
Segment Information | ||||||
Sales | 113 | 122 | 217 | 228 | ||
Costs applicable to sales | 55 | 67 | 107 | 132 | ||
Depreciation and amortization | 5 | 4 | 9 | 9 | ||
Advanced Projects, Research and Development, and Exploration | 1 | 2 | 3 | 3 | ||
Income (Loss) before Income and Mining Tax and Other Items | 52 | 49 | 95 | 82 | ||
Capital Expenditures | 4 | 5 | 8 | 8 | ||
Australia | Operating Segments | Other Asia Pacific | ||||||
Segment Information | ||||||
Depreciation and amortization | 1 | 2 | 3 | 6 | ||
Advanced Projects, Research and Development, and Exploration | 2 | 2 | 3 | 3 | ||
Income (Loss) before Income and Mining Tax and Other Items | (5) | (10) | (20) | (15) | ||
Capital Expenditures | 2 | 3 | ||||
Africa | Operating Segments | ||||||
Segment Information | ||||||
Sales | 277 | 261 | 545 | 497 | ||
Costs applicable to sales | 133 | 116 | 271 | 228 | ||
Depreciation and amortization | 55 | 49 | 112 | 93 | ||
Advanced Projects, Research and Development, and Exploration | 16 | 10 | 24 | 17 | ||
Income (Loss) before Income and Mining Tax and Other Items | 66 | 83 | 129 | 148 | ||
Capital Expenditures | 42 | 25 | 65 | 49 | ||
Africa | Operating Segments | Ahafo | ||||||
Segment Information | ||||||
Sales | 112 | 115 | 226 | 216 | ||
Costs applicable to sales | 60 | 60 | 136 | 117 | ||
Depreciation and amortization | 15 | 17 | 38 | 32 | ||
Advanced Projects, Research and Development, and Exploration | 10 | 7 | 16 | 12 | ||
Income (Loss) before Income and Mining Tax and Other Items | 25 | 30 | 34 | 50 | ||
Capital Expenditures | 36 | 22 | 53 | 39 | ||
Africa | Operating Segments | Akyem | ||||||
Segment Information | ||||||
Sales | 165 | 146 | 319 | 281 | ||
Costs applicable to sales | 73 | 56 | 135 | 111 | ||
Depreciation and amortization | 40 | 32 | 74 | 61 | ||
Advanced Projects, Research and Development, and Exploration | 5 | 3 | 6 | 4 | ||
Income (Loss) before Income and Mining Tax and Other Items | 45 | 55 | 100 | 102 | ||
Capital Expenditures | 6 | 3 | 12 | 10 | ||
Africa | Operating Segments | Other Africa | ||||||
Segment Information | ||||||
Advanced Projects, Research and Development, and Exploration | 1 | 2 | 1 | |||
Income (Loss) before Income and Mining Tax and Other Items | $ (4) | $ (2) | $ (5) | $ (4) | ||
[1] | Excludes Depreciation and amortization and Reclamation and remediation. |
RECLAMATION AND REMEDIATION - Y
RECLAMATION AND REMEDIATION - Yanacocha (Details) | 6 Months Ended |
Jun. 30, 2017 | |
Yanacocha | |
Reclamation and remediation expense | |
Frequency of closure plan updates (in years) | 5 years |
RECLAMATION AND REMEDIATION - E
RECLAMATION AND REMEDIATION - Expense (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
RECLAMATION AND REMEDIATION | ||||
Reclamation | $ 15 | $ 15 | ||
Reclamation accretion | 25 | $ 19 | 50 | $ 38 |
Total reclamation expense | 40 | 19 | 65 | 38 |
Remediation | 2 | 1 | 6 | 2 |
Remediation accretion | 2 | 1 | 3 | 2 |
Total remediation expense | 4 | 2 | 9 | 4 |
Reclamation and remediation expense | 44 | $ 21 | 74 | $ 42 |
Change in expense | ||||
Increase in reclamation expense | $ 21 | $ 27 |
RECLAMATION AND REMEDIATION - R
RECLAMATION AND REMEDIATION - Reconciliation of Obligations (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Change in reclamation liability | ||||
Balance at beginning of period | $ 1,792 | $ 1,300 | ||
Additions, changes in estimates and other | 15 | 2 | ||
Payments and other | (11) | (6) | ||
Accretion expense | $ 25 | $ 19 | 50 | 38 |
Balance at end of period | 1,846 | 1,334 | 1,846 | 1,334 |
Change in remediation liability | ||||
Balance at beginning of period | 298 | 318 | ||
Additions, changes in estimates and other | 3 | 1 | ||
Payments and other | (21) | (10) | ||
Accretion Expense | 2 | 1 | 3 | 2 |
Balance at end of period | $ 283 | $ 311 | $ 283 | $ 311 |
RECLAMATION AND REMEDIATION - A
RECLAMATION AND REMEDIATION - Additional Information (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 | Jun. 30, 2016 | Dec. 31, 2015 |
Reclamation and remediation liability | ||||
Asset retirement obligation | $ 1,846 | $ 1,792 | $ 1,334 | $ 1,300 |
Environmental remediation obligations | 283 | 298 | $ 311 | $ 318 |
Other current liabilities | ||||
Reclamation and remediation liability | ||||
Reclamation obligation, current | 37 | 28 | ||
Remediation obligation, current | 32 | 33 | ||
Other noncurrent assets | ||||
Reclamation and remediation liability | ||||
Asset retirement obligation restricted assets | 65 | 66 | ||
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 | 14 | 14 | ||
Other noncurrent assets | Con Mine | ||||
Reclamation and remediation liability | ||||
Asset retirement obligation restricted assets | 8 | 9 | ||
Investments, Noncurrent | San Jose Reservoir and various Nevada locations | Marketable equity securities | ||||
Reclamation and remediation liability | ||||
Asset retirement obligation restricted assets | $ 21 | $ 20 |
OTHER EXPENSE, NET (Details)
OTHER EXPENSE, NET (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
OTHER EXPENSE, NET | ||||
Restructuring and other | $ 1 | $ 6 | $ 8 | $ 19 |
Acquisition costs | 3 | 2 | 5 | 2 |
Impairment of long-lived assets | 4 | 3 | 4 | |
Other | 10 | 3 | 15 | 8 |
Other expense, net | $ 14 | $ 15 | $ 31 | $ 33 |
OTHER INCOME, NET (Details)
OTHER INCOME, NET (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Mar. 31, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Foreign currency exchange, net | $ (4) | $ (4) | $ (21) | $ (20) | ||
Gain on asset and investment sales, net | 14 | 16 | 104 | |||
Tanami insurance proceeds | 13 | 13 | ||||
Other | 8 | 5 | 14 | 13 | ||
Other Income, net | $ 31 | $ 1 | $ 22 | $ 97 | ||
Regis Resources Ltd. | ||||||
Other information | ||||||
Proceeds from sale of available for sale securities | $ 184 | |||||
Other income, net | ||||||
Tanami insurance proceeds | $ 13 | |||||
Other income, net | Regis Resources Ltd. | ||||||
Other information | ||||||
Gain on sale of investments, net | $ 103 | |||||
Other income, net | Fort a' la Corne | ||||||
Gain on asset and investment sales, net | $ 15 |
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, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Reconciling item, percentage | ||||
Tax at statutory rate (as a percent) | 35.00% | 35.00% | 35.00% | 35.00% |
Percentage depletion (as a percent) | (13.00%) | 45.00% | (14.00%) | (4.00%) |
Change in valuation allowance on deferred tax assets (as a percent) | 21.00% | 42.00% | 26.00% | 74.00% |
Mining and other taxes (as a percent) | 5.00% | (20.00%) | 7.00% | 5.00% |
Tax impact on sale of assets (as a percent) | (1.00%) | (1.00%) | (7.00%) | |
Other (as a percent) | 3.00% | (3.00%) | (1.00%) | 1.00% |
Income and mining tax expense (as a percent) | 50.00% | 99.00% | 52.00% | 104.00% |
Reconciling item, amount | ||||
Income (loss) before income and mining tax and other items | $ 336 | $ 241 | $ 529 | $ 449 |
Tax at statutory rate | 118 | 84 | 185 | 157 |
Percentage depletion | (42) | 109 | (74) | (17) |
Change in valuation allowance on deferred tax assets | 72 | 101 | 139 | 333 |
Mining and other taxes | 16 | (47) | 35 | 24 |
Tax impact on sale of assets | (5) | (5) | (35) | |
Other | 8 | (9) | (3) | 3 |
Income and mining tax benefit (expense) | $ (167) | $ (238) | $ (277) | $ (465) |
INCOME AND MINING TAXES - Unrec
INCOME AND MINING TAXES - Unrecognized Tax Benefits (Details) $ in Millions | 3 Months Ended | ||
Sep. 30, 2016 | Jun. 30, 2016USD ($)subsidiary | Jun. 30, 2017USD ($) | |
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 | $ 10 | ||
Maximum | |||
Unrecognized Tax Benefits, other information | |||
Significant decrease in unrecognized tax benefits is reasonably possible, estimated range of change | $ 15 |
NET INCOME (LOSS) ATTRIBUTABL68
NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS FROM CONTINUING OPERATIONS - Net Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS | ||||
Net income (loss) attributable to noncontrolling interests | $ (26) | $ (16) | $ (14) | $ (28) |
Minera Yanacocha S.R.L. | ||||
NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS | ||||
Net income (loss) attributable to noncontrolling interests | (38) | (13) | (39) | (24) |
Merian | ||||
NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS | ||||
Net income (loss) attributable to noncontrolling interests | $ 12 | $ (3) | 26 | $ (4) |
Other | ||||
NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS | ||||
Net income (loss) attributable to noncontrolling interests | $ (1) |
NET INCOME (LOSS) ATTRIBUTABL69
NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS FROM CONTINUING OPERATIONS - Ownership (Details) | 6 Months Ended |
Jun. 30, 2017 | |
Minera Yanacocha S.R.L. | |
NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS | |
Ownership/Economic interest in subsidiaries | 51.35% |
Minera Yanacocha S.R.L. | Compañia de Minas Buenaventura | |
NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS | |
Noncontrolling interest, ownership percentage by noncontrolling owners | 43.65% |
Minera Yanacocha S.R.L. | International Finance Corporation | |
NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS | |
Noncontrolling interest, ownership percentage by noncontrolling owners | 5.00% |
Merian | Primary Beneficiary | |
NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS | |
Ownership interest held (as a percent) | 75.00% |
NET INCOME (LOSS) ATTRIBUTABL70
NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS FROM CONTINUING OPERATIONS - Classified Assets and Liabilities of Consolidated VIEs (Details) - Primary Beneficiary - Merian - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Assets and liabilities of VIE | ||
Current assets | $ 126 | $ 167 |
Total assets | 890 | 921 |
Current liabilities | 38 | 43 |
Total liabilities | 50 | 54 |
Cash and cash equivalents | ||
Assets and liabilities of VIE | ||
Current assets | 20 | 50 |
Inventories | ||
Assets and liabilities of VIE | ||
Current assets | 64 | 57 |
Stockpiles and ore on leach pads | ||
Assets and liabilities of VIE | ||
Current assets | 7 | 23 |
Other current assets | ||
Assets and liabilities of VIE | ||
Current assets | 35 | 37 |
Other noncurrent assets | ||
Assets and liabilities of VIE | ||
Non-current assets | 23 | 8 |
Property, plant and mine development, net | ||
Assets and liabilities of VIE | ||
Non-current assets | 741 | 746 |
Other current liabilities | ||
Assets and liabilities of VIE | ||
Current liabilities | 38 | 43 |
Reclamation and remediation liabilities | ||
Assets and liabilities of VIE | ||
Non-current liabilities | $ 12 | $ 11 |
INCOME (LOSS) PER COMMON SHAR71
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, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Net income (loss) attributable to Newmont stockholders: | ||||
Continuing operations | $ 192 | $ 14 | $ 261 | $ 2 |
Discontinued operations | (15) | 9 | (38) | 73 |
Net income (loss) attributable to Newmont stockholders | $ 177 | $ 23 | $ 223 | $ 75 |
Weighted average common shares (millions): | ||||
Basic | 533 | 531 | 533 | 530 |
Effect of employee stock-based awards | 2 | 2 | 1 | 2 |
Diluted | 535 | 533 | 534 | 532 |
Net income (loss) per common share: Basic: | ||||
Continuing operations (in dollars per share) | $ 0.36 | $ 0.02 | $ 0.49 | |
Discontinued operations (in dollars per share) | (0.03) | 0.02 | (0.07) | $ 0.14 |
Net income (loss) per common share, basic | 0.33 | 0.04 | 0.42 | 0.14 |
Net income (loss) per common share: Diluted | ||||
Continuing operations (in dollars per share) | 0.36 | 0.02 | 0.49 | |
Discontinued operations (in dollars per share) | (0.03) | 0.02 | (0.07) | 0.14 |
Net income (loss) per common share, diluted | $ 0.33 | $ 0.04 | $ 0.42 | $ 0.14 |
INCOME (LOSS) PER COMMON SHAR72
INCOME (LOSS) PER COMMON SHARE - Anti-dilutive Shares (Details) - Options - $ / shares shares in Millions | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Antidilutive securities | ||
Anti-dilutive shares | 1 | 2 |
Options to purchase common shares average exercise price (in dollars per share) | $ 51.85 | $ 51 |
EMPLOYEE PENSION AND OTHER BE73
EMPLOYEE PENSION AND OTHER BENEFIT PLANS - Net Periodic Pension Costs (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Pension Plans | ||||
Net periodic pension and other benefits costs | ||||
Service cost | $ 8 | $ 8 | $ 15 | $ 15 |
Interest cost | 11 | 12 | 22 | 23 |
Expected return on plan assets | (16) | (15) | (31) | (29) |
Amortization, net | 7 | 6 | 14 | 12 |
Settlements | 4 | |||
Total benefit cost | 10 | 11 | 24 | 21 |
Other Benefit Plans | ||||
Net periodic pension and other benefits costs | ||||
Service cost | 1 | 1 | 1 | 1 |
Interest cost | 1 | 1 | 2 | 2 |
Amortization, net | (3) | $ (2) | (4) | $ (3) |
Total benefit cost | $ (1) | $ (1) |
STOCK-BASED COMPENSATION - Comp
STOCK-BASED COMPENSATION - Compensation Costs (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Stock-based compensation: | ||||
Stock-based compensation | $ 19 | $ 21 | $ 35 | $ 37 |
Performance leveraged stock units | ||||
Stock-based compensation: | ||||
Stock-based compensation | 9 | 11 | 17 | 19 |
Restricted stock units | ||||
Stock-based compensation: | ||||
Stock-based compensation | $ 10 | 9 | 17 | 15 |
Strategic stock units | ||||
Stock-based compensation: | ||||
Stock-based compensation | $ 1 | $ 1 | $ 3 |
FAIR VALUE ACCOUNTING - Fair Va
FAIR VALUE ACCOUNTING - Fair Value on a Recurring Basis (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Recurring | ||
Assets: | ||
Cash and cash equivalents | $ 3,105 | $ 2,756 |
Restricted assets | 68 | 68 |
Assets | 3,533 | 3,044 |
Liabilities: | ||
Debt (1) | 5,159 | 4,882 |
Liabilities | 5,423 | 5,107 |
Recurring | Boddington Contingent Consideration | ||
Liabilities: | ||
Contingent consideration | 13 | 14 |
Recurring | Holt royalty obligation | ||
Liabilities: | ||
Holt royalty obligation | 240 | 187 |
Recurring | Batu Hijau Contingent Consideration | ||
Assets: | ||
Batu Hijau contingent consideration | 13 | 13 |
Recurring | Provisional copper and gold concentrate receivables | ||
Assets: | ||
Trade receivable, net | 151 | 113 |
Recurring | Foreign exchange forward contracts | ||
Liabilities: | ||
Derivative instruments, net | 8 | 24 |
Recurring | Diesel forward contracts | ||
Liabilities: | ||
Derivative instruments, net | 3 | |
Recurring | Level 1 | ||
Assets: | ||
Cash and cash equivalents | 3,105 | 2,756 |
Restricted assets | 68 | 68 |
Assets | 3,520 | 3,013 |
Recurring | Level 1 | Provisional copper and gold concentrate receivables | ||
Assets: | ||
Trade receivable, net | 151 | 113 |
Recurring | Level 2 | ||
Liabilities: | ||
Debt (1) | 5,159 | 4,882 |
Liabilities | 5,170 | 4,906 |
Recurring | Level 2 | Foreign exchange forward contracts | ||
Liabilities: | ||
Derivative instruments, net | 8 | 24 |
Recurring | Level 2 | Diesel forward contracts | ||
Liabilities: | ||
Derivative instruments, net | 3 | |
Recurring | Level 3 | ||
Assets: | ||
Assets | 13 | 31 |
Liabilities: | ||
Liabilities | 253 | 201 |
Recurring | Level 3 | Boddington Contingent Consideration | ||
Liabilities: | ||
Contingent consideration | 13 | 14 |
Recurring | Level 3 | Holt royalty obligation | ||
Liabilities: | ||
Holt royalty obligation | 240 | 187 |
Recurring | Level 3 | Batu Hijau Contingent Consideration | ||
Assets: | ||
Batu Hijau contingent consideration | 13 | 13 |
Recurring | Marketable equity securities | Extractive industries | ||
Assets: | ||
Marketable securities | 174 | 60 |
Recurring | Marketable equity securities | Extractive industries | Level 1 | ||
Assets: | ||
Marketable securities | 174 | 60 |
Recurring | Marketable equity securities | Other industries | ||
Assets: | ||
Marketable securities | 22 | 16 |
Recurring | Marketable equity securities | Other industries | Level 1 | ||
Assets: | ||
Marketable securities | 22 | 16 |
Recurring | Asset backed commercial paper | Marketable debt securities | ||
Assets: | ||
Marketable securities | 18 | |
Recurring | Asset backed commercial paper | Level 3 | Marketable debt securities | ||
Assets: | ||
Marketable securities | 18 | |
Carrying value | ||
Liabilities: | ||
Debt (1) | $ 4,608 | $ 4,599 |
FAIR VALUE ACCOUNTING - Quantit
FAIR VALUE ACCOUNTING - Quantitative Information (Details) oz in Thousands, $ in Millions | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2017USD ($)oz$ / oz$ / lb | Dec. 31, 2016USD ($)oz$ / oz$ / lb | Jun. 30, 2016USD ($) | Dec. 31, 2015USD ($) | |
Quantitative and Qualitative Information - Unobservable Inputs | ||||
Financial assets, fair value | $ 13 | $ 31 | $ 27 | $ 25 |
Financial liabilities, fair value | 253 | 201 | 212 | 139 |
Boddington Contingent Consideration | ||||
Quantitative and Qualitative Information - Unobservable Inputs | ||||
Financial liabilities, fair value | 13 | 14 | 12 | 10 |
Boddington Contingent Consideration | Maximum | ||||
Quantitative and Qualitative Information - Unobservable Inputs | ||||
Boddington contingent consideration liability | 100 | |||
Holt royalty obligation | ||||
Quantitative and Qualitative Information - Unobservable Inputs | ||||
Financial liabilities, fair value | 240 | 187 | $ 200 | $ 129 |
Batu Hijau Contingent Consideration | ||||
Quantitative and Qualitative Information - Unobservable Inputs | ||||
Financial assets, fair value | 13 | 13 | ||
Level 3 | Risk-Adjusted Indicative Price | Asset backed commercial paper | ||||
Quantitative and Qualitative Information - Unobservable Inputs | ||||
Financial assets, fair value | $ 18 | |||
Recoverability Rate | 97.00% | |||
Level 3 | Monte Carlo | Boddington Contingent Consideration | ||||
Quantitative and Qualitative Information - Unobservable Inputs | ||||
Contingent consideration paid to date | 84 | |||
Financial liabilities, fair value | $ 13 | $ 14 | ||
Discount Rate (as a percent) | 2.97% | 3.36% | ||
Short-term copper price (in dollars per pound) | $ / lb | 2.57 | 2.39 | ||
Long-term copper price (in dollars per pound) | $ / lb | 3 | 3 | ||
Short-term gold price (in dollars per ounce) | $ / oz | 1,257 | 1,221 | ||
Long-term gold price (in dollars per ounce) | $ / oz | 1,300 | 1,300 | ||
Long-term Australian to U.S. dollar exchange rate | 0.80 | 0.80 | ||
Level 3 | Monte Carlo | Holt royalty obligation | ||||
Quantitative and Qualitative Information - Unobservable Inputs | ||||
Financial liabilities, fair value | $ 240 | $ 187 | ||
Discount Rate (as a percent) | 3.01% | 3.36% | ||
Short-term gold price (in dollars per ounce) | $ / oz | 1,257 | 1,221 | ||
Long-term gold price (in dollars per ounce) | $ / oz | 1,300 | 1,300 | ||
Level 3 | Monte Carlo | Holt royalty obligation | Minimum | ||||
Quantitative and Qualitative Information - Unobservable Inputs | ||||
Gold production scenarios (in 000's of ounces) | oz | 438 | 332 | ||
Level 3 | Monte Carlo | Holt royalty obligation | Maximum | ||||
Quantitative and Qualitative Information - Unobservable Inputs | ||||
Gold production scenarios (in 000's of ounces) | oz | 1,814 | 1,570 | ||
Level 3 | Monte Carlo | Batu Hijau Contingent Consideration | ||||
Quantitative and Qualitative Information - Unobservable Inputs | ||||
Financial assets, fair value | $ 13 | $ 13 | ||
Discount Rate (as a percent) | 17.10% | 17.10% | ||
Short-term copper price (in dollars per pound) | $ / lb | 2.57 | 2.39 | ||
Long-term copper price (in dollars per pound) | $ / lb | 3 | 3 |
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, 2017 | Jun. 30, 2016 | |
Summary of changes in Level 3 financial assets | ||
Balance at beginning of period, assets | $ 31 | $ 25 |
Settlements | (18) | |
Revaluation | 2 | |
Balance at end of period, assets | 13 | 27 |
Summary of changes in Level 3 financial liabilities | ||
Balance at beginning of period, liabilities | 201 | 139 |
Settlements | (12) | (5) |
Revaluation | 64 | 78 |
Balance at end of period, liabilities | 253 | 212 |
Boddington Contingent Consideration | ||
Summary of changes in Level 3 financial liabilities | ||
Balance at beginning of period, liabilities | 14 | 10 |
Balance at end of period, liabilities | 13 | 12 |
Boddington Contingent Consideration | Other expense, net | ||
Summary of changes in Level 3 financial liabilities | ||
Settlements | (6) | |
Revaluation | 5 | 2 |
Holt royalty obligation | ||
Summary of changes in Level 3 financial liabilities | ||
Balance at beginning of period, liabilities | 187 | 129 |
Balance at end of period, liabilities | 240 | 200 |
Holt royalty obligation | Income (loss) from discontinued operations | ||
Summary of changes in Level 3 financial liabilities | ||
Settlements | (6) | (5) |
Revaluation | 59 | 76 |
Batu Hijau Contingent Consideration | ||
Summary of changes in Level 3 financial assets | ||
Balance at beginning of period, assets | 13 | |
Settlements | 0 | |
Balance at end of period, assets | 13 | |
Auction rate securities | Marketable debt securities | ||
Summary of changes in Level 3 financial assets | ||
Balance at beginning of period, assets | 7 | |
Balance at end of period, assets | 7 | |
Asset backed commercial paper | Marketable debt securities | ||
Summary of changes in Level 3 financial assets | ||
Balance at beginning of period, assets | 18 | 18 |
Settlements | $ (18) | |
Revaluation | 2 | |
Balance at end of period, assets | $ 20 |
DERIVATIVE INSTRUMENTS - Foreig
DERIVATIVE INSTRUMENTS - Foreign Currency Derivative Contracts Outstanding (Details) - Australia - Cash Flow Hedges - AUD AUD in Millions | Jun. 30, 2017AUD$ / AUD |
Foreign exchange forward contracts | |
Derivative contracts | |
Derivative notional amount | AUD | AUD 52 |
Average rate | $ / AUD | 0.93 |
Expected Maturity Date - 2017 | |
Derivative contracts | |
Derivative notional amount | AUD | AUD 46 |
Average rate | $ / AUD | 0.93 |
Expected hedge ratio | 7.00% |
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, 2017$ / galgal | |
Diesel forward contracts | |
Derivative contracts | |
Diesel gallons (millions) | gal | 21 |
Average rate ($/gallon) | $ / gal | 1.59 |
Diesel forward contracts maturing in 2017 | |
Derivative contracts | |
Diesel gallons (millions) | gal | 12 |
Average rate ($/gallon) | $ / gal | 1.58 |
Expected hedge ratio | 54.00% |
Diesel forward contracts maturing in 2018 | |
Derivative contracts | |
Diesel gallons (millions) | gal | 9 |
Average rate ($/gallon) | $ / gal | 1.60 |
Expected hedge ratio | 22.00% |
DERIVATIVE INSTRUMENTS - Fair V
DERIVATIVE INSTRUMENTS - Fair Values of Instruments Designated as Hedges (Details) - Cash Flow Hedges - Designated - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Other current assets | ||
Derivative contracts | ||
Fair Value of Derivative Instruments, Assets | $ 4 | |
Other current assets | Diesel forward contracts | ||
Derivative contracts | ||
Fair Value of Derivative Instruments, Assets | 4 | |
Other current liabilities | ||
Derivative contracts | ||
Fair Value of Derivative Instruments, Liabilities | $ 11 | 27 |
Other current liabilities | Foreign exchange forward contracts | AUD | ||
Derivative contracts | ||
Fair Value of Derivative Instruments, Liabilities | 8 | 23 |
Other current liabilities | Diesel forward contracts | ||
Derivative contracts | ||
Fair Value of Derivative Instruments, Liabilities | $ 3 | 4 |
Other non-current liabilities | ||
Derivative contracts | ||
Fair Value of Derivative Instruments, Liabilities | 1 | |
Other non-current liabilities | Foreign exchange forward contracts | AUD | ||
Derivative contracts | ||
Fair Value of Derivative Instruments, Liabilities | $ 1 |
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, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Derivative contracts | ||||
Approximate loss amount to be reclassified from accumulated other comprehensive income (loss), net of tax to income | $ 16 | |||
Cash Flow Hedges | Foreign exchange forward contracts | ||||
Derivative contracts | ||||
Gain (loss) recognized in Other comprehensive income (loss) (effective portion) | $ (3) | 4 | $ 4 | |
Gain (loss) reclassified from Accumulated other comprehensive income (loss) into income (loss) (effective portion) (1) | $ (7) | (10) | (15) | (20) |
Cash Flow Hedges | Diesel forward contracts | ||||
Derivative contracts | ||||
Gain (loss) recognized in Other comprehensive income (loss) (effective portion) | (3) | 7 | (6) | 5 |
Gain (loss) reclassified from Accumulated other comprehensive income (loss) into income (loss) (effective portion) (1) | (1) | (5) | (3) | (14) |
Gain (loss) reclassified from Accumulated other comprehensive income (loss) into income (loss) (ineffective portion) (2) | 1 | 1 | ||
Cash Flow Hedges | Interest rate contracts | ||||
Derivative contracts | ||||
Gain (loss) reclassified from Accumulated other comprehensive income (loss) into income (loss) (effective portion) (1) | $ (3) | $ (5) | $ (5) | $ (8) |
DERIVATIVE INSTRUMENTS - Batu H
DERIVATIVE INSTRUMENTS - Batu Hijau Contingent Consideration (Details) - Contingent Payment $ in Millions | 3 Months Ended | 6 Months Ended |
Jun. 30, 2017USD ($) | Jun. 30, 2017USD ($) | |
Batu Hijau Contingent Consideration | ||
Change in value of contingent consideration | $ 0 | $ 0 |
Other noncurrent assets | ||
Batu Hijau Contingent Consideration | ||
Batu Hijau contingent consideration | $ 13 | $ 13 |
DERIVATIVE INSTRUMENTS - Embedd
DERIVATIVE INSTRUMENTS - Embedded Derivatives (Details) oz in Thousands, lb in Millions | 6 Months Ended |
Jun. 30, 2017lboz$ / oz$ / lb | |
Gold Contracts - Embedded Derivative | |
Provisional Gold and Copper Sales - Embedded derivatives | |
Provisional pricing quantity sales (in ounces or pounds) | oz | 92 |
Average price, subject to final pricing (in USD per ounce or pound) | $ / oz | 1,244 |
Copper Contracts - Embedded Derivative | |
Provisional Gold and Copper Sales - Embedded derivatives | |
Provisional pricing quantity sales (in ounces or pounds) | lb | 24 |
Average price, subject to final pricing (in USD per ounce or pound) | $ / lb | 2.68 |
INVESTMENTS - Marketable Securi
INVESTMENTS - Marketable Securities - Amortized Cost/Fair Value (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Investments | ||
Investments, Fair/Equity Basis | $ 306 | $ 227 |
TMAC Resources Inc. | ||
Investments | ||
Ownership interest (as a percent) | 28.80% | 29.00% |
Minera La Zanja S.R.L. | ||
Investments | ||
Ownership interest (as a percent) | 46.94% | 46.94% |
Euronimba | ||
Investments | ||
Ownership interest (as a percent) | 43.50% | 43.50% |
Investments, Current | Marketable equity securities | ||
Investments | ||
Cost/Equity Basis | $ 48 | $ 33 |
Unrealized Gain | 19 | 27 |
Unrealized Loss | (6) | (4) |
Fair/Equity Basis - Current Marketable Equity Securities | 61 | 56 |
Investments, Noncurrent | ||
Investments | ||
Other investments, at cost | 7 | 6 |
Investments, Cost/Equity Basis | 303 | 223 |
Unrealized Gain | 4 | 4 |
Unrealized Loss | (1) | |
Investments, Fair/Equity Basis | 306 | 227 |
Equity Method Investments | 164 | 183 |
Investments, Noncurrent | Continental | ||
Investments | ||
Cost/Equity Basis | 109 | |
Unrealized Gain | 1 | |
Fair/Equity Basis - Long-Term Marketable Securities | 110 | |
Investments, Noncurrent | TMAC Resources Inc. | ||
Investments | ||
Equity Method Investments | 104 | 108 |
Investments, Noncurrent | Minera La Zanja S.R.L. | ||
Investments | ||
Equity Method Investments | 54 | 71 |
Investments, Noncurrent | Euronimba | ||
Investments | ||
Equity Method Investments | 6 | 4 |
Investments, Noncurrent | Asset backed commercial paper | ||
Investments | ||
Cost/Equity Basis | 16 | |
Unrealized Gain | 2 | |
Fair/Equity Basis - Long-Term Marketable Securities | 18 | |
Investments, Noncurrent | Marketable equity securities | ||
Investments | ||
Cost/Equity Basis | 132 | 18 |
Unrealized Gain | 4 | 2 |
Unrealized Loss | (1) | |
Fair/Equity Basis - Long-Term Marketable Securities | 135 | $ 20 |
Investments, Noncurrent | Other marketable equity securities | ||
Investments | ||
Cost/Equity Basis | 23 | |
Unrealized Gain | 3 | |
Unrealized Loss | (1) | |
Fair/Equity Basis - Long-Term Marketable Securities | $ 25 |
INVESTMENTS - Acquisitions and
INVESTMENTS - Acquisitions and Dispositions (Details) $ in Millions | 1 Months Ended | 6 Months Ended | |||||
Jun. 30, 2017USD ($)shares | May 31, 2017USD ($)shares | Apr. 30, 2017USD ($)shares | Jun. 30, 2017USD ($) | Jun. 30, 2016USD ($) | May 31, 2017CAD / shares | Apr. 30, 2017CAD / shares | |
Investments acquired | |||||||
Total consideration paid | $ | $ 113 | $ 2 | |||||
Shore Gold | |||||||
Investments | |||||||
Ownership interest held (as a percent) | 19.90% | 19.90% | |||||
Investments acquired | |||||||
Marketable equity securities | $ | $ 15 | $ 15 | |||||
Continental | |||||||
Investments | |||||||
Ownership interest held (as a percent) | 19.90% | ||||||
Investments acquired | |||||||
Shares acquired | 37,000,000 | ||||||
Price paid per share | CAD / shares | CAD 4 | ||||||
Total consideration paid | $ | $ 109 | ||||||
Goldstrike Resources | |||||||
Investments acquired | |||||||
Number of units acquired | 13,000,000 | ||||||
Number of common shares included in each unit acquired | 1 | ||||||
Number of warrants included in each unit acquired | 1 | ||||||
Price paid per share | CAD / shares | CAD 0.47 | ||||||
Total consideration paid | $ | $ 4 | ||||||
Fort a' la Corne | Shore Gold | |||||||
Investments | |||||||
Ownership interest held (as a percent) | 31.00% | 31.00% | |||||
Sale of investments | |||||||
Shares received from sale of investment | 54,000,000 | ||||||
Warrants received from sale of investment | 1,000,000 |
INVESTMENTS - Impairments and O
INVESTMENTS - Impairments and Other Information (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||
Jan. 31, 2017 | Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Impairments | |||||
Impairment of investments | $ 0 | $ 0 | $ 0 | $ 0 | |
Increase (decrease) in fair value of marketable securities previously impaired | 17 | (60) | |||
Asset backed commercial paper | |||||
Investments | |||||
Gain (loss) realized on securities called at par | $ 0 | ||||
Regis Resources Ltd. | |||||
Impairments | |||||
Increase (decrease) in fair value of marketable securities previously impaired | $ (83) | ||||
Gabriel Resources Ltd. | |||||
Impairments | |||||
Increase (decrease) in fair value of marketable securities previously impaired | 11 | ||||
Pilot Gold | |||||
Impairments | |||||
Increase (decrease) in fair value of marketable securities previously impaired | $ 3 |
INVENTORIES - Summary of Invent
INVENTORIES - Summary of Inventories (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Inventory, net | ||
Materials and supplies | $ 410 | $ 391 |
In-process | 139 | 130 |
Concentrate and copper cathode | 83 | 67 |
Precious metals | 33 | 29 |
Total inventories | $ 665 | $ 617 |
STOCKPILES AND ORE ON LEACH P88
STOCKPILES AND ORE ON LEACH PADS - By location (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Stockpiles And Ore On Leach Pads | ||
Current stockpiles and ore on leach pads | $ 821 | $ 763 |
Long-term stockpiles and ore on leach pads | 1,781 | 1,864 |
Stockpiles and ore on leach pads | 2,602 | 2,627 |
Stockpiles | ||
Stockpiles And Ore On Leach Pads | ||
Current stockpiles and ore on leach pads | 409 | 393 |
Long-term stockpiles and ore on leach pads | 1,454 | 1,506 |
Ore on Leach Pads | ||
Stockpiles And Ore On Leach Pads | ||
Current stockpiles and ore on leach pads | 412 | 370 |
Long-term stockpiles and ore on leach pads | 327 | 358 |
Operating Segments | Carlin | ||
Stockpiles And Ore On Leach Pads | ||
Stockpiles and ore on leach pads | 463 | 421 |
Operating Segments | Phoenix | ||
Stockpiles And Ore On Leach Pads | ||
Stockpiles and ore on leach pads | 71 | 80 |
Operating Segments | Twin Creeks | ||
Stockpiles And Ore On Leach Pads | ||
Stockpiles and ore on leach pads | 338 | 328 |
Operating Segments | Long Canyon | ||
Stockpiles And Ore On Leach Pads | ||
Stockpiles and ore on leach pads | 37 | 9 |
Operating Segments | Cripple Creek & Victor mine | ||
Stockpiles And Ore On Leach Pads | ||
Stockpiles and ore on leach pads | 331 | 369 |
Operating Segments | Yanacocha | ||
Stockpiles And Ore On Leach Pads | ||
Stockpiles and ore on leach pads | 309 | 367 |
Operating Segments | Merian | ||
Stockpiles And Ore On Leach Pads | ||
Stockpiles and ore on leach pads | 26 | 27 |
Operating Segments | Boddington | ||
Stockpiles And Ore On Leach Pads | ||
Stockpiles and ore on leach pads | 408 | 394 |
Operating Segments | Tanami | ||
Stockpiles And Ore On Leach Pads | ||
Stockpiles and ore on leach pads | 14 | 19 |
Operating Segments | Kalgoorlie | ||
Stockpiles And Ore On Leach Pads | ||
Stockpiles and ore on leach pads | 120 | 113 |
Operating Segments | Ahafo | ||
Stockpiles And Ore On Leach Pads | ||
Stockpiles and ore on leach pads | 392 | 386 |
Operating Segments | Akyem | ||
Stockpiles And Ore On Leach Pads | ||
Stockpiles and ore on leach pads | $ 93 | $ 114 |
STOCKPILES AND ORE ON LEACH P89
STOCKPILES AND ORE ON LEACH PADS - Write-downs (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Stockpiles and ore on leach pads | Carlin | ||||
Write-downs | ||||
Inventory write-downs | $ 11 | $ 31 | $ 34 | $ 58 |
Stockpiles and ore on leach pads | Twin Creeks | ||||
Write-downs | ||||
Inventory write-downs | 13 | 10 | 16 | 12 |
Stockpiles and ore on leach pads | Yanacocha | ||||
Write-downs | ||||
Inventory write-downs | 32 | 42 | 41 | 87 |
Stockpiles and ore on leach pads | Akyem | ||||
Write-downs | ||||
Inventory write-downs | 8 | |||
Stockpiles and ore on leach pads | Costs applicable to sales | ||||
Write-downs | ||||
Inventory write-downs | 46 | 57 | 86 | 107 |
Stockpiles and ore on leach pads | Depreciation and Amortization | ||||
Write-downs | ||||
Inventory write-downs | $ 18 | $ 26 | 31 | $ 50 |
Stockpiles | Akyem | ||||
Write-downs | ||||
Inventory write-downs | 8 | |||
Stockpiles | Ahafo | ||||
Write-downs | ||||
Inventory write-downs | $ 18 |
DEBT - Payments (Details)
DEBT - Payments (Details) - USD ($) $ in Millions | 1 Months Ended | 6 Months Ended | |
Jul. 31, 2017 | Jun. 30, 2017 | Jun. 30, 2016 | |
DEBT | |||
Debt payments | $ 3 | $ 501 | |
2017 Convertible Senior Notes | |||
DEBT | |||
Debt payments | $ 575 |
DEBT - Maturities (Details)
DEBT - Maturities (Details) - USD ($) | Jun. 30, 2017 | May 31, 2017 |
Scheduled minimum debt repayments | ||
Remainder of 2017 | $ 575,000,000 | |
2,018 | 0 | |
2,019 | 626,000,000 | |
2,020 | 0 | |
2,021 | 0 | |
Debt repayments, thereafter | 3,466,000,000 | |
Scheduled minimum capital lease repayments | ||
Remainder of 2017 | 4,000,000 | |
2,018 | 4,000,000 | |
2,019 | 3,000,000 | |
2,020 | 1,000,000 | |
2,021 | 1,000,000 | |
Capital lease repayments, thereafter | $ 2,000,000 | |
Corporate Revolving Credit Facilities | ||
Amendments | ||
Line of credit facility maximum borrowing capacity | $ 3,000,000,000 |
OTHER LIABILITIES (Details)
OTHER LIABILITIES (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Other current liabilities: | ||
Reclamation and remediation liabilities | $ 69 | $ 61 |
Accrued operating costs | 68 | 99 |
Accrued interest | 56 | 57 |
Accrued capital expenditures | 50 | 53 |
Royalties | 35 | 52 |
Holt royalty obligation | 14 | 13 |
Derivative instruments | 11 | 27 |
Taxes other than income and mining | 7 | 8 |
Boddington contingent consideration | 5 | 3 |
Other | 26 | 34 |
Other current liabilities, total | 341 | 407 |
Other long-term liabilities: | ||
Holt property royalty | 226 | 174 |
Income and mining taxes | 52 | 50 |
Power supply agreements | 31 | 31 |
Social development obligations | 24 | 25 |
Boddington contingent consideration | 8 | 11 |
Derivative instruments | 1 | |
Other | 35 | 34 |
Other long-term liabilities, total | $ 376 | $ 326 |
CHANGES IN EQUITY (Details)
CHANGES IN EQUITY (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Changes in Equity | ||||
Balance at beginning of period | $ 11,874 | |||
Other comprehensive income (loss) | $ 4 | $ 45 | 16 | $ (7) |
Net income (loss) attributable to Newmont stockholders | 177 | 23 | 223 | 75 |
Net income (loss) attributable to noncontrolling interests | (26) | 39 | (14) | 122 |
Balance at end of period | 12,040 | 14,383 | 12,040 | 14,383 |
Payments of distributions to noncontrolling interests | 80 | |||
Funding from noncontrolling interests paid | 46 | 50 | ||
Common Stock | ||||
Changes in Equity | ||||
Balance at beginning of period | 849 | 847 | ||
Stock-based awards | 4 | 2 | ||
Balance at end of period | 853 | 849 | 853 | 849 |
Additional Paid-in Capital | ||||
Changes in Equity | ||||
Balance at beginning of period | 9,490 | 9,427 | ||
Stock-based awards | 18 | 30 | ||
Balance at end of period | 9,508 | 9,457 | 9,508 | 9,457 |
Accumulated Other Comprehensive Income (Loss) | ||||
Changes in Equity | ||||
Balance at beginning of period | (334) | (334) | ||
Other comprehensive income (loss) | 16 | (7) | ||
Balance at end of period | (318) | (341) | (318) | (341) |
Retained Earnings | ||||
Changes in Equity | ||||
Balance at beginning of period | 716 | 1,410 | ||
Net income (loss) attributable to Newmont stockholders | 223 | 75 | ||
Dividends paid | (54) | (27) | ||
Balance at end of period | 885 | 1,458 | 885 | 1,458 |
Noncontrolling Interests | ||||
Changes in Equity | ||||
Balance at beginning of period | 1,153 | 2,942 | ||
Net income (loss) attributable to noncontrolling interests | (14) | 122 | ||
Distributions declared to noncontrolling interests (1) | (71) | |||
Cash calls requested from noncontrolling interests (2) | 46 | 43 | ||
Dividends paid to noncontrolling interests | (146) | |||
Other | (2) | (1) | ||
Balance at end of period | $ 1,112 | $ 2,960 | 1,112 | 2,960 |
Noncontrolling Interests | Staatsolie | ||||
Changes in Equity | ||||
Distributions declared to noncontrolling interests (1) | (71) | |||
Cash calls requested from noncontrolling interests (2) | 46 | 43 | ||
Payments of distributions to noncontrolling interests | $ 80 | |||
Funding from noncontrolling interests paid | $ 7 |
RECLASSIFICATIONS OUT OF ACCU94
RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) - Components of AOCI (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | ||||
Balance at beginning of period | $ 11,874 | |||
Other comprehensive income (loss) | $ 4 | $ 45 | 16 | $ (7) |
Balance at end of period | 12,040 | 14,383 | 12,040 | 14,383 |
Unrealized gain (loss) on marketable securities, net | ||||
RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | ||||
Balance at beginning of period | (101) | |||
Change in other comprehensive income (loss) before reclassifications | (11) | |||
Other comprehensive income (loss) | (11) | |||
Balance at end of period | (112) | (112) | ||
Foreign currency translation adjustments | ||||
RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | ||||
Balance at beginning of period | 118 | |||
Change in other comprehensive income (loss) before reclassifications | 4 | |||
Other comprehensive income (loss) | 4 | |||
Balance at end of period | 122 | 122 | ||
Pension and other post-retirement benefit adjustments | ||||
RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | ||||
Balance at beginning of period | (223) | |||
Reclassifications from accumulated other comprehensive income (loss) | 3 | 3 | 9 | 6 |
Other comprehensive income (loss) | 9 | |||
Balance at end of period | (214) | (214) | ||
Changes in fair value of cash flow hedge instruments | ||||
RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | ||||
Balance at beginning of period | (128) | |||
Change in other comprehensive income (loss) before reclassifications | (1) | |||
Reclassifications from accumulated other comprehensive income (loss) | 15 | |||
Other comprehensive income (loss) | 14 | |||
Balance at end of period | (114) | (114) | ||
Accumulated Other Comprehensive Income (Loss) | ||||
RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | ||||
Balance at beginning of period | (334) | (334) | ||
Change in other comprehensive income (loss) before reclassifications | (8) | |||
Reclassifications from accumulated other comprehensive income (loss) | 24 | |||
Other comprehensive income (loss) | 16 | (7) | ||
Balance at end of period | $ (318) | $ (341) | $ (318) | $ (341) |
RECLASSIFICATIONS OUT OF ACCU95
RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) - Reclassifications (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | ||
Amount Reclassified from Accumulated Other Comprehensive Income (Loss) | |||||
Costs applicable to sales (1) | [1] | $ 999 | $ 902 | $ 1,932 | $ 1,753 |
Other income, net | (31) | (1) | (22) | (97) | |
Depreciation and amortization | 308 | 281 | 601 | 557 | |
Interest expense, net | 64 | 66 | 131 | 140 | |
Total before tax | (336) | (241) | (529) | (449) | |
Tax benefit (expense) | 167 | 238 | 277 | 465 | |
Net of tax | (151) | (62) | (209) | (197) | |
Pension and other post-retirement benefit adjustments | |||||
Amount Reclassified from Accumulated Other Comprehensive Income (Loss) | |||||
Total before tax | 4 | 4 | 14 | 9 | |
Tax benefit (expense) | (1) | (1) | (5) | (3) | |
Net of tax | 3 | 3 | 9 | 6 | |
Accumulated defined benefit pension plans adjustment, amortization | |||||
Amount Reclassified from Accumulated Other Comprehensive Income (Loss) | |||||
Total before tax | 4 | 4 | 10 | 9 | |
Accumulated defined benefit pension plans adjustment, settlements | |||||
Amount Reclassified from Accumulated Other Comprehensive Income (Loss) | |||||
Total before tax | 4 | ||||
Changes in fair value of cash flow hedge instruments | |||||
Amount Reclassified from Accumulated Other Comprehensive Income (Loss) | |||||
Net of tax | 15 | ||||
Reclassification Out of Accumulated Other Comprehensive Income | |||||
Amount Reclassified from Accumulated Other Comprehensive Income (Loss) | |||||
Net of tax | 10 | 17 | 24 | (69) | |
Reclassification Out of Accumulated Other Comprehensive Income | Unrealized gain (loss) on marketable securities, net | |||||
Amount Reclassified from Accumulated Other Comprehensive Income (Loss) | |||||
Total before tax | (103) | ||||
Net of tax | (103) | ||||
Reclassification Out of Accumulated Other Comprehensive Income | Marketable securities adjustments - sale of marketable securities | |||||
Amount Reclassified from Accumulated Other Comprehensive Income (Loss) | |||||
Other income, net | (103) | ||||
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 | 11 | 19 | 23 | 41 | |
Tax benefit (expense) | (4) | (5) | (8) | (13) | |
Net of tax | 7 | 14 | 15 | 28 | |
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 (1) | 8 | 15 | 18 | 34 | |
Other income, net | (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 | $ 3 | $ 5 | $ 5 | $ 8 | |
[1] | Excludes Depreciation and amortization and Reclamation and remediation. |
NET CHANGE IN OPERATING ASSET96
NET CHANGE IN OPERATING ASSETS AND LIABILITIES (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Decrease (increase) in operating assets: | ||
Trade and other accounts receivables | $ 9 | $ 79 |
Inventories, stockpiles and ore on leach pads | (135) | (193) |
Other assets | (23) | |
Increase (decrease) in operating liabilities: | ||
Accounts payable | (21) | (13) |
Reclamation and remediation liabilities | (32) | (16) |
Other accrued liabilities | (76) | (65) |
Net change in operating assets and liabilities | $ (255) | $ (231) |
CONDENSED CONSOLIDATING FINAN97
CONDENSED CONSOLIDATING FINANCIAL STATEMENTS - Additional Information (Details) | Jun. 30, 2017 |
Newmont USA | |
Condensed Financial Statements | |
Percent ownership held by Newmont | 100.00% |
CONDENSED CONSOLIDATING FINAN98
CONDENSED CONSOLIDATING FINANCIAL STATEMENTS - Statement of Operations (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | ||
Condensed Consolidating Statement of Operations | |||||
Sales | $ 1,875 | $ 1,669 | $ 3,534 | $ 3,131 | |
Costs and expenses | |||||
Costs applicable to sales (1) | [1] | 999 | 902 | 1,932 | 1,753 |
Depreciation and amortization | 308 | 281 | 601 | 557 | |
Reclamation and remediation | 44 | 21 | 74 | 42 | |
Exploration | 51 | 38 | 87 | 68 | |
Advanced projects, research and development | 32 | 44 | 58 | 71 | |
General and administrative | 58 | 62 | 113 | 115 | |
Impairment of long-lived assets | 4 | 3 | 4 | ||
Other expense, net | 14 | 15 | 31 | 33 | |
Total costs and expenses | 1,506 | 1,363 | 2,896 | 2,639 | |
Other income (expense) | |||||
Other income, net | 31 | 1 | 22 | 97 | |
Interest expense, net | (64) | (66) | (131) | (140) | |
Total other income (expense) | (33) | (65) | (109) | (43) | |
Income (loss) before income and mining tax and other items | 336 | 241 | 529 | 449 | |
Income and mining tax benefit (expense) | (167) | (238) | (277) | (465) | |
Equity income (loss) of affiliates | (3) | (5) | (5) | (10) | |
Net income (loss) from continuing operations | 166 | (2) | 247 | (26) | |
Net income (loss) from discontinued operations, net of tax (Note 3) | (15) | 64 | (38) | 223 | |
Net income (loss) | 151 | 62 | 209 | 197 | |
Net loss (income) attributable to noncontrolling interests, net of tax | |||||
Continuing operations | 26 | 16 | 14 | 28 | |
Discontinued operations | (55) | (150) | |||
Net loss (income) attributable to noncontrolling interests | 26 | (39) | 14 | (122) | |
Net income (loss) attributable to Newmont stockholders | 177 | 23 | 223 | 75 | |
Comprehensive income (loss) | 155 | 107 | 225 | 190 | |
Comprehensive loss (income) attributable to noncontrolling interests | 26 | (39) | 14 | (122) | |
Comprehensive income (loss) attributable to Newmont stockholders | 181 | 68 | 239 | 68 | |
Reportable Legal Entities | Newmont Mining Corporation | |||||
Costs and expenses | |||||
Depreciation and amortization | 1 | 2 | 2 | 2 | |
Total costs and expenses | 1 | 2 | 2 | 2 | |
Other income (expense) | |||||
Other income, net | 23 | (9) | 26 | ||
Interest income - intercompany | 23 | 31 | 47 | 61 | |
Interest expense - intercompany | (14) | (10) | (22) | (18) | |
Interest expense, net | (59) | (64) | (121) | (135) | |
Total other income (expense) | (27) | (52) | (70) | (92) | |
Income (loss) before income and mining tax and other items | (28) | (54) | (72) | (94) | |
Income and mining tax benefit (expense) | 9 | (45) | 25 | 30 | |
Equity income (loss) of affiliates | 196 | 122 | 270 | 139 | |
Net income (loss) from continuing operations | 177 | 23 | 223 | 75 | |
Net income (loss) | 177 | 23 | 223 | 75 | |
Net loss (income) attributable to noncontrolling interests, net of tax | |||||
Net income (loss) attributable to Newmont stockholders | 177 | 23 | 223 | 75 | |
Comprehensive income (loss) | 181 | 68 | 239 | 68 | |
Comprehensive income (loss) attributable to Newmont stockholders | 181 | 68 | 239 | 68 | |
Reportable Legal Entities | Newmont USA | |||||
Condensed Consolidating Statement of Operations | |||||
Sales | 517 | 459 | 920 | 930 | |
Costs and expenses | |||||
Costs applicable to sales (1) | 280 | 284 | 565 | 590 | |
Depreciation and amortization | 82 | 76 | 161 | 160 | |
Reclamation and remediation | 3 | 4 | 7 | 7 | |
Exploration | 13 | 10 | 22 | 16 | |
Advanced projects, research and development | 2 | 3 | 3 | 5 | |
General and administrative | 18 | 23 | 35 | 40 | |
Other expense, net | 2 | 9 | 8 | 13 | |
Total costs and expenses | 400 | 409 | 801 | 831 | |
Other income (expense) | |||||
Other income, net | 3 | 1 | 3 | 1 | |
Interest income - intercompany | 24 | 24 | |||
Interest expense - intercompany | (4) | (4) | |||
Interest expense, net | (1) | (3) | (2) | ||
Total other income (expense) | 22 | 1 | 20 | (1) | |
Income (loss) before income and mining tax and other items | 139 | 51 | 139 | 98 | |
Income and mining tax benefit (expense) | (22) | (5) | (22) | (16) | |
Equity income (loss) of affiliates | (150) | (174) | (234) | (448) | |
Net income (loss) from continuing operations | (33) | (128) | (117) | (366) | |
Net income (loss) | (33) | (128) | (117) | (366) | |
Net loss (income) attributable to noncontrolling interests, net of tax | |||||
Net income (loss) attributable to Newmont stockholders | (33) | (128) | (117) | (366) | |
Comprehensive income (loss) | (31) | (116) | (110) | (348) | |
Comprehensive income (loss) attributable to Newmont stockholders | (31) | (116) | (110) | (348) | |
Reportable Legal Entities | Other Subsidiaries | |||||
Condensed Consolidating Statement of Operations | |||||
Sales | 1,358 | 1,210 | 2,614 | 2,201 | |
Costs and expenses | |||||
Costs applicable to sales (1) | 719 | 618 | 1,367 | 1,163 | |
Depreciation and amortization | 225 | 203 | 438 | 395 | |
Reclamation and remediation | 41 | 17 | 67 | 35 | |
Exploration | 38 | 28 | 65 | 52 | |
Advanced projects, research and development | 30 | 41 | 55 | 66 | |
General and administrative | 40 | 39 | 78 | 75 | |
Other expense, net | 12 | 6 | 23 | 20 | |
Total costs and expenses | 1,105 | 952 | 2,093 | 1,806 | |
Other income (expense) | |||||
Other income, net | 5 | 9 | (7) | 96 | |
Interest income - intercompany | 15 | 10 | 22 | 19 | |
Interest expense - intercompany | (44) | (31) | (67) | (62) | |
Interest expense, net | (4) | (2) | (7) | (3) | |
Total other income (expense) | (28) | (14) | (59) | 50 | |
Income (loss) before income and mining tax and other items | 225 | 244 | 462 | 445 | |
Income and mining tax benefit (expense) | (154) | (188) | (280) | (479) | |
Equity income (loss) of affiliates | (13) | (5) | (14) | (3) | |
Net income (loss) from continuing operations | 58 | 51 | 168 | (37) | |
Net income (loss) from discontinued operations, net of tax (Note 3) | (15) | 64 | (38) | 223 | |
Net income (loss) | 43 | 115 | 130 | 186 | |
Net loss (income) attributable to noncontrolling interests, net of tax | |||||
Continuing operations | 26 | 16 | 14 | 28 | |
Discontinued operations | (55) | (150) | |||
Net loss (income) attributable to noncontrolling interests | 26 | (39) | 14 | (122) | |
Net income (loss) attributable to Newmont stockholders | 69 | 76 | 144 | 64 | |
Comprehensive income (loss) | 41 | 145 | 123 | 155 | |
Comprehensive loss (income) attributable to noncontrolling interests | 26 | (39) | 14 | (122) | |
Comprehensive income (loss) attributable to Newmont stockholders | 67 | 106 | 137 | 33 | |
Eliminations | |||||
Other income (expense) | |||||
Interest income - intercompany | (62) | (41) | (93) | (80) | |
Interest expense - intercompany | 62 | 41 | 93 | 80 | |
Equity income (loss) of affiliates | (36) | 52 | (27) | 302 | |
Net income (loss) from continuing operations | (36) | 52 | (27) | 302 | |
Net income (loss) | (36) | 52 | (27) | 302 | |
Net loss (income) attributable to noncontrolling interests, net of tax | |||||
Net income (loss) attributable to Newmont stockholders | (36) | 52 | (27) | 302 | |
Comprehensive income (loss) | (36) | 10 | (27) | 315 | |
Comprehensive income (loss) attributable to Newmont stockholders | $ (36) | $ 10 | $ (27) | $ 315 | |
[1] | Excludes Depreciation and amortization and Reclamation and remediation. |
CONDENSED CONSOLIDATING FINAN99
CONDENSED CONSOLIDATING FINANCIAL STATEMENTS - Statement of Cash Flows (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Operating activities: | ||||
Net cash provided by (used in) continuing operating activities | $ 908 | $ 825 | ||
Net cash provided by (used in) operating activities of discontinued operations | (9) | 478 | ||
Net cash provided by (used in) operating activities | 899 | 1,303 | ||
Investing activities: | ||||
Additions to property, plant and mine development | $ (183) | $ (283) | (363) | (563) |
Proceeds from sales of investments | 19 | 184 | ||
Purchases of investments | (113) | (2) | ||
Other | 11 | 4 | ||
Net cash provided by (used in) investing activities of continuing operations | (446) | (377) | ||
Net cash provided by (used in) investing activities of discontinued operations | (28) | |||
Net cash provided by (used in) investing activities | (446) | (405) | ||
Financing activities: | ||||
Distributions to noncontrolling interests | (80) | |||
Dividends paid to common stockholders | (54) | (27) | ||
Funding from noncontrolling interests | 46 | 50 | ||
Payments for withholding of employee taxes related to stock-based compensation | (13) | (4) | ||
Repayment of debt | (3) | (501) | ||
Dividends to noncontrolling interests | (146) | |||
Other | (3) | (1) | ||
Net cash provided by (used in) financing activities of continuing operations | (107) | (629) | ||
Net cash provided by (used in) financing activities of discontinued operations | (153) | |||
Net cash provided by (used in) financing activities | (107) | (782) | ||
Effect of exchange rate changes on cash | 3 | 4 | ||
Net change in cash and cash equivalents | 349 | 120 | ||
Less net cash provided by (used in) Batu Hijau discontinued operations | 302 | |||
Net change in cash and cash equivalents excluding cash and cash equivalents related to Batu Hijau discontinued operations | 349 | (182) | ||
Cash and cash equivalents at beginning of period | 2,756 | 2,363 | ||
Cash and cash equivalents at end of period | 3,105 | 2,181 | 3,105 | 2,181 |
Reportable Legal Entities | Newmont Mining Corporation | ||||
Operating activities: | ||||
Net cash provided by (used in) continuing operating activities | (116) | 720 | ||
Net cash provided by (used in) operating activities | (116) | 720 | ||
Investing activities: | ||||
Purchases of investments | (109) | |||
Net cash provided by (used in) investing activities of continuing operations | (109) | |||
Net cash provided by (used in) investing activities | (109) | |||
Financing activities: | ||||
Dividends paid to common stockholders | (54) | (27) | ||
Repayment of debt | (498) | |||
Net intercompany borrowings (repayments) | 282 | (195) | ||
Other | (3) | |||
Net cash provided by (used in) financing activities of continuing operations | 225 | (720) | ||
Net cash provided by (used in) financing activities | 225 | (720) | ||
Reportable Legal Entities | Newmont USA | ||||
Operating activities: | ||||
Net cash provided by (used in) continuing operating activities | 222 | 308 | ||
Net cash provided by (used in) operating activities | 222 | 308 | ||
Investing activities: | ||||
Additions to property, plant and mine development | (121) | (129) | ||
Other | 2 | |||
Net cash provided by (used in) investing activities of continuing operations | (119) | (129) | ||
Net cash provided by (used in) investing activities | (119) | (129) | ||
Financing activities: | ||||
Dividends paid to common stockholders | (862) | |||
Payments for withholding of employee taxes related to stock-based compensation | (13) | (4) | ||
Repayment of debt | (1) | (1) | ||
Net intercompany borrowings (repayments) | (90) | (492) | ||
Net cash provided by (used in) financing activities of continuing operations | (104) | (1,359) | ||
Net cash provided by (used in) financing activities | (104) | (1,359) | ||
Net change in cash and cash equivalents | (1) | (1,180) | ||
Net change in cash and cash equivalents excluding cash and cash equivalents related to Batu Hijau discontinued operations | (1) | (1,180) | ||
Cash and cash equivalents at beginning of period | 1 | 1,181 | ||
Cash and cash equivalents at end of period | 1 | 1 | ||
Reportable Legal Entities | Other Subsidiaries | ||||
Operating activities: | ||||
Net cash provided by (used in) continuing operating activities | 802 | 659 | ||
Net cash provided by (used in) operating activities of discontinued operations | (9) | 478 | ||
Net cash provided by (used in) operating activities | 793 | 1,137 | ||
Investing activities: | ||||
Additions to property, plant and mine development | (242) | (434) | ||
Proceeds from sales of investments | 19 | 184 | ||
Purchases of investments | (4) | (2) | ||
Other | 9 | 4 | ||
Net cash provided by (used in) investing activities of continuing operations | (218) | (248) | ||
Net cash provided by (used in) investing activities of discontinued operations | (28) | |||
Net cash provided by (used in) investing activities | (218) | (276) | ||
Financing activities: | ||||
Distributions to noncontrolling interests | (80) | |||
Funding from noncontrolling interests | 46 | 50 | ||
Repayment of debt | (2) | (2) | ||
Dividends to noncontrolling interests | (146) | |||
Net intercompany borrowings (repayments) | (192) | 687 | ||
Other | (1) | |||
Net cash provided by (used in) financing activities of continuing operations | (228) | 588 | ||
Net cash provided by (used in) financing activities of discontinued operations | (153) | |||
Net cash provided by (used in) financing activities | (228) | 435 | ||
Effect of exchange rate changes on cash | 3 | 4 | ||
Net change in cash and cash equivalents | 350 | 1,300 | ||
Less net cash provided by (used in) Batu Hijau discontinued operations | 302 | |||
Net change in cash and cash equivalents excluding cash and cash equivalents related to Batu Hijau discontinued operations | 350 | 998 | ||
Cash and cash equivalents at beginning of period | 2,755 | 1,182 | ||
Cash and cash equivalents at end of period | $ 3,105 | $ 2,180 | $ 3,105 | 2,180 |
Eliminations | ||||
Operating activities: | ||||
Net cash provided by (used in) continuing operating activities | (862) | |||
Net cash provided by (used in) operating activities | (862) | |||
Financing activities: | ||||
Dividends paid to common stockholders | 862 | |||
Net cash provided by (used in) financing activities of continuing operations | 862 | |||
Net cash provided by (used in) financing activities | $ 862 |
CONDENSED CONSOLIDATING FINA100
CONDENSED CONSOLIDATING FINANCIAL STATEMENTS - Balance Sheet (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 | Jun. 30, 2016 | Dec. 31, 2015 |
Assets | ||||
Cash and cash equivalents | $ 3,105 | $ 2,756 | $ 2,181 | $ 2,363 |
Trade receivables | 158 | 127 | ||
Other accounts receivables | 179 | 216 | ||
Investments | 61 | 56 | ||
Inventories | 665 | 617 | ||
Stockpiles and ore on leach pads | 821 | 763 | ||
Other current assets | 109 | 142 | ||
Current assets | 5,098 | 4,677 | ||
Property, plant and mine development, net | 12,262 | 12,485 | ||
Investments | 306 | 227 | ||
Stockpiles and ore on leach pads | 1,781 | 1,864 | ||
Deferred income tax assets | 1,245 | 1,331 | ||
Other non-current assets | 450 | 447 | ||
Total assets | 21,142 | 21,031 | ||
Liabilities | ||||
Debt | 577 | 566 | ||
Accounts payable | 304 | 320 | ||
Employee-related benefits | 223 | 304 | ||
Income and mining taxes | 127 | 153 | ||
Other current liabilities | 341 | 407 | ||
Current liabilities | 1,572 | 1,750 | ||
Debt | 4,046 | 4,049 | ||
Reclamation and remediation liabilities | 2,060 | 2,029 | ||
Deferred income tax liabilities | 614 | 592 | ||
Employee-related benefits | 434 | 411 | ||
Other non-current liabilities | 376 | 326 | ||
Total liabilities | 9,102 | 9,157 | ||
Equity | ||||
Newmont stockholders' equity | 10,928 | 10,721 | ||
Noncontrolling interests | 1,112 | 1,153 | ||
Total equity | 12,040 | 11,874 | 14,383 | |
Total liabilities and equity | 21,142 | 21,031 | ||
Reportable Legal Entities | Newmont Mining Corporation | ||||
Assets | ||||
Intercompany receivable | 8,952 | 7,255 | ||
Current assets | 8,952 | 7,255 | ||
Property, plant and mine development, net | 20 | 20 | ||
Investments | 110 | |||
Investments in subsidiaries | 13,215 | 13,222 | ||
Deferred income tax assets | 504 | 477 | ||
Non-current intercompany receivable | 2,048 | 2,219 | ||
Total assets | 24,849 | 23,193 | ||
Liabilities | ||||
Debt | 573 | 560 | ||
Intercompany payable | 9,163 | 7,720 | ||
Other current liabilities | 56 | 62 | ||
Current liabilities | 9,792 | 8,342 | ||
Debt | 4,039 | 4,038 | ||
Deferred income tax liabilities | 9 | 9 | ||
Non-current intercompany payable | 81 | 83 | ||
Total liabilities | 13,921 | 12,472 | ||
Equity | ||||
Newmont stockholders' equity | 10,928 | 10,721 | ||
Total equity | 10,928 | 10,721 | ||
Total liabilities and equity | 24,849 | 23,193 | ||
Reportable Legal Entities | Newmont USA | ||||
Assets | ||||
Cash and cash equivalents | 1 | 1 | 1,181 | |
Trade receivables | 36 | 21 | ||
Other accounts receivables | 2 | |||
Intercompany receivable | 6,280 | 6,065 | ||
Inventories | 167 | 155 | ||
Stockpiles and ore on leach pads | 246 | 224 | ||
Other current assets | 39 | 83 | ||
Current assets | 6,768 | 6,551 | ||
Property, plant and mine development, net | 3,093 | 3,144 | ||
Investments | 9 | 8 | ||
Investments in subsidiaries | 303 | 537 | ||
Stockpiles and ore on leach pads | 615 | 599 | ||
Deferred income tax assets | 64 | 48 | ||
Non-current intercompany receivable | 525 | 606 | ||
Other non-current assets | 223 | 224 | ||
Total assets | 11,600 | 11,717 | ||
Liabilities | ||||
Debt | 2 | 3 | ||
Accounts payable | 60 | 62 | ||
Intercompany payable | 4,340 | 4,795 | ||
Employee-related benefits | 96 | 148 | ||
Income and mining taxes | 15 | 13 | ||
Other current liabilities | 74 | 109 | ||
Current liabilities | 4,587 | 5,130 | ||
Debt | 3 | 4 | ||
Reclamation and remediation liabilities | 252 | 247 | ||
Deferred income tax liabilities | 92 | 93 | ||
Employee-related benefits | 278 | 269 | ||
Other non-current liabilities | 18 | 21 | ||
Total liabilities | 5,230 | 5,764 | ||
Equity | ||||
Newmont stockholders' equity | 6,370 | 5,953 | ||
Total equity | 6,370 | 5,953 | ||
Total liabilities and equity | 11,600 | 11,717 | ||
Reportable Legal Entities | Other Subsidiaries | ||||
Assets | ||||
Cash and cash equivalents | 3,105 | 2,755 | $ 2,180 | $ 1,182 |
Trade receivables | 122 | 106 | ||
Other accounts receivables | 179 | 214 | ||
Intercompany receivable | 12,023 | 11,347 | ||
Investments | 61 | 56 | ||
Inventories | 498 | 462 | ||
Stockpiles and ore on leach pads | 575 | 539 | ||
Other current assets | 70 | 59 | ||
Current assets | 16,633 | 15,538 | ||
Property, plant and mine development, net | 9,181 | 9,355 | ||
Investments | 187 | 219 | ||
Stockpiles and ore on leach pads | 1,166 | 1,265 | ||
Deferred income tax assets | 1,167 | 1,296 | ||
Non-current intercompany receivable | 949 | 955 | ||
Other non-current assets | 227 | 223 | ||
Total assets | 29,510 | 28,851 | ||
Liabilities | ||||
Debt | 2 | 3 | ||
Accounts payable | 244 | 258 | ||
Intercompany payable | 13,752 | 12,152 | ||
Employee-related benefits | 127 | 156 | ||
Income and mining taxes | 112 | 140 | ||
Other current liabilities | 211 | 236 | ||
Current liabilities | 14,448 | 12,945 | ||
Debt | 4 | 7 | ||
Reclamation and remediation liabilities | 1,808 | 1,782 | ||
Deferred income tax liabilities | 1,003 | 980 | ||
Employee-related benefits | 156 | 142 | ||
Non-current intercompany payable | 3,473 | 3,731 | ||
Other non-current liabilities | 358 | 305 | ||
Total liabilities | 21,250 | 19,892 | ||
Equity | ||||
Newmont stockholders' equity | 7,148 | 7,806 | ||
Noncontrolling interests | 1,112 | 1,153 | ||
Total equity | 8,260 | 8,959 | ||
Total liabilities and equity | 29,510 | 28,851 | ||
Eliminations | ||||
Assets | ||||
Intercompany receivable | (27,255) | (24,667) | ||
Current assets | (27,255) | (24,667) | ||
Property, plant and mine development, net | (32) | (34) | ||
Investments in subsidiaries | (13,518) | (13,759) | ||
Deferred income tax assets | (490) | (490) | ||
Non-current intercompany receivable | (3,522) | (3,780) | ||
Total assets | (44,817) | (42,730) | ||
Liabilities | ||||
Intercompany payable | (27,255) | (24,667) | ||
Current liabilities | (27,255) | (24,667) | ||
Deferred income tax liabilities | (490) | (490) | ||
Non-current intercompany payable | (3,554) | (3,814) | ||
Total liabilities | (31,299) | (28,971) | ||
Equity | ||||
Newmont stockholders' equity | (13,518) | (13,759) | ||
Total equity | (13,518) | (13,759) | ||
Total liabilities and equity | $ (44,817) | $ (42,730) |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Environmental Matters (Details) - USD ($) $ in Millions | Feb. 15, 2017 | Feb. 15, 2016 | Jun. 30, 2017 | Jun. 30, 2017 | Dec. 31, 2016 | Jun. 30, 2016 | Dec. 31, 2015 |
Accrual for future reclamation costs | |||||||
Increase in asset retirement obligation | $ 21 | $ 27 | |||||
Asset retirement obligation | 1,846 | 1,846 | $ 1,792 | $ 1,334 | $ 1,300 | ||
Environmental remediation obligations | 283 | $ 283 | 298 | $ 311 | $ 318 | ||
Yanacocha | |||||||
Accrual for future reclamation costs | |||||||
Modification period | 1 year | ||||||
Compliance period | 3 years | ||||||
Frequency of closure plan updates (in years) | 5 years | ||||||
Other current liabilities | |||||||
Accrual for future reclamation costs | |||||||
Reclamation obligation, current | $ 37 | $ 37 | $ 28 | ||||
Reclamation and remediation liabilities | |||||||
Accrual for future reclamation costs | |||||||
Range of reclamation and remediation liabilities upper limit | 43.00% | 43.00% | |||||
Range of reclamation and remediation liabilities lower limit | 1.00% | 1.00% |
COMMITMENTS AND CONTINGENCIE102
COMMITMENTS AND CONTINGENCIES - Environmental Matters by Site (Details) - USD ($) $ in Millions | Jun. 05, 2007 | Jun. 30, 2017 | Dec. 31, 2016 | Jun. 30, 2016 | Dec. 31, 2015 | Dec. 31, 2012 |
Loss contingencies | ||||||
Environmental remediation obligations | $ 283 | $ 298 | $ 311 | $ 318 | ||
Newmont USA | ||||||
Loss contingencies | ||||||
Percent ownership held by Newmont | 100.00% | |||||
Newmont USA | Environmental remediation | Ross-Adams Mine Site | ||||||
Loss contingencies | ||||||
Damages sought | $ 0.3 | |||||
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 | |||||
Environmental remediation obligations | $ 192 |
COMMITMENTS AND CONTINGENCIE103
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, 2017plaintiff | 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 CONTINGENCIE104
COMMITMENTS AND CONTINGENCIES - Administrative Matters (Details) $ in Millions | 1 Months Ended | 6 Months Ended | 12 Months Ended |
Nov. 30, 2015USD ($)judgment | Jun. 30, 2017USD ($)item$ / item | Dec. 31, 2000USD ($) | |
OEFA | Maximum | |||
Loss contingencies | |||
Number of units with alleged violations | item | 50,430 | ||
Environmental remediation | |||
Loss contingencies | |||
Potential fine for each unit alleged violations (in dollars per unit) | $ / item | 0.00122 | ||
Environmental remediation | Minimum | |||
Loss contingencies | |||
Potential fine for alleged violations | $ | $ 0 | ||
Environmental remediation | Maximum | |||
Loss contingencies | |||
Potential fine for alleged violations | $ | $ 98 | ||
Environmental remediation | OEFA | Minimum | |||
Loss contingencies | |||
Number of units with alleged violations | item | 0 | ||
Environmental remediation | Water Authority | Minimum | |||
Loss contingencies | |||
Number of units with alleged violations | item | 0 | ||
Environmental remediation | Water Authority | Maximum | |||
Loss contingencies | |||
Number of units with alleged violations | item | 30,000 | ||
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 | ||
Unfavorable Tax Ruling | Yanacocha Tax Dispute | Buenaventura and Minas Conga | Contractual right to conduct exploration | Maximum | |||
Loss contingencies | |||
Intangible asset, useful life | 10 years | ||
Potential liability, including fines and interest | $ | $ 75 |
COMMITMENTS AND CONTINGENCIE105
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 | Jun. 30, 2007 |
North America | Pending Litigation | |||||
Loss contingencies | |||||
Uranium mining moratorium term | 3 years | ||||
NWG Investments Inc. | NWG New York Case | Pending Litigation | |||||
Loss contingencies | |||||
Damages sought | $ | $ 750 | ||||
NWG Investments Inc. | NWG Ontario Complaint | Pending Litigation | |||||
Loss contingencies | |||||
Damages sought | CAD | CAD 1.2 | ||||
NWG Investments Inc. | Jacob Safra | |||||
Loss contingencies | |||||
Ownership interest held by majority shareholder of parent of acquiree entity | 100.00% | ||||
Fronteer | NewWest Gold | |||||
Loss contingencies | |||||
Other company ownership percentage in affiliate | 86.00% | ||||
Fronteer | Aurora | |||||
Loss contingencies | |||||
Ownership interest in Aurora Energy Resources Inc. held by Fronteer | 47.00% |
COMMITMENTS AND CONTINGENCIE106
COMMITMENTS AND CONTINGENCIES - Investigations (Details) | 1 Months Ended |
Mar. 31, 2016 | |
Compliance Review Investigations | |
Investigations | |
Agreement term | 1 year |
COMMITMENTS AND CONTINGENCIE107
COMMITMENTS AND CONTINGENCIES - Royalty Obligations (Details) $ in Millions | Jun. 25, 2009USD ($)$ / oz | Jun. 30, 2010 | Jun. 30, 2017USD ($) | Jun. 30, 2016USD ($) | Dec. 31, 2016USD ($) |
Corporate and other | Royalty Obligations | |||||
Minimum Royalty Obligations | |||||
Remainder of 2016 | $ 30 | ||||
2,018 | 30 | ||||
2,019 | 31 | ||||
2,020 | 33 | ||||
2,021 | 34 | ||||
Thereafter | 35 | ||||
Boddington | |||||
Minimum Royalty Obligations | |||||
2,017 | 5 | ||||
Contingent consideration expected to be paid in next 12 months | 5 | ||||
Boddington | Royalty Obligations | |||||
Minimum Royalty Obligations | |||||
Boddington final interest acquired | 33.33% | ||||
Acquisition price | $ 982 | ||||
Boddington contingent consideration liability | $ 62 | 13 | $ 14 | ||
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 | 33.33% | ||||
Contingent consideration paid to date | 84 | ||||
Contingent consideration cash paid | 6 | $ 0 | |||
Contingent consideration range low | 0 | ||||
Contingent consideration, high end of range | 16 | ||||
Maximum | Boddington | Royalty Obligations | |||||
Minimum Royalty Obligations | |||||
Boddington contingent consideration liability | $ 100 | $ 100 |
COMMITMENTS AND CONTINGENCIE108
COMMITMENTS AND CONTINGENCIES - Other Commitments (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Corporate and other | ||
Other commitments | ||
Letters of credit surety bonds and bank guarantees, outstanding | $ 2,270 | $ 2,227 |