Exhibit 12.1
NEWMONT MINING CORPORATION AND SUBSIDIARIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
The ratio of earnings to fixed charges represents income before income and mining tax expense, noncontrolling interests, equity income (loss) of affiliates, discontinued operations and cumulative effect of changes in accounting principles, divided by interest expense. Interest expense includes amortization of capitalized interest and the portion of rent expense representative of interest. The financial information of all prior periods has been reclassified to reflect discontinued operations.
Years Ended December 31, | ||||||||||||||||||||
2014 | 2013 | 2012 | 2011 | 2010 | ||||||||||||||||
(Amounts in millions except ratio) | ||||||||||||||||||||
Earnings: | ||||||||||||||||||||
Income (loss) before income and mining tax and other items | $ | 506 | $ | (3,606 | ) | $ | 3,114 | $ | 1,810 | $ | 3,997 | |||||||||
Adjustments: | ||||||||||||||||||||
Fixed charges excluding capitalized interest | 379 | 320 | 272 | 267 | 295 | |||||||||||||||
Amortization of interest capitalized | — | — | 19 | 31 | 7 | |||||||||||||||
Dividends from equity affiliates | 19 | 74 | 26 | 24 | 26 | |||||||||||||||
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Earnings (losses) available for fixed charges | $ | 904 | $ | (3,212 | ) | $ | 3,431 | $ | 2,132 | $ | 4,325 | |||||||||
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Fixed Charges: | ||||||||||||||||||||
Net interest expense(1) | $ | 361 | $ | 303 | $ | 249 | $ | 244 | $ | 279 | ||||||||||
Portion of rental expense representative of interest | 18 | 17 | 23 | 23 | 16 | |||||||||||||||
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Fixed charges added to earnings | 379 | 320 | 272 | 267 | 295 | |||||||||||||||
Capitalized interest | 23 | 88 | 107 | 52 | 21 | |||||||||||||||
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Total Fixed Charges | $ | 402 | $ | 408 | $ | 379 | $ | 319 | $ | 316 | ||||||||||
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Ratio of earnings to fixed charges(2) | 2.2 | — | 9.1 | 6.7 | 13.7 |
(1) | Includes interest expense of majority-owned subsidiaries and amortization of debt issuance costs. |
(2) | Earnings for 2013 were inadequate to cover fixed charges by $3,620. |
NEWMONT MINING CORPORATION AND SUBSIDIARIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
Six Months Ended June 30, 2015 | ||||
(Amounts in millions except ratio) | ||||
Earnings: | ||||
Income before income and mining tax and other items | $ | 721 | ||
Adjustments: | ||||
Fixed charges added to earnings | 176 | |||
Amortization of capitalized interest | 10 | |||
Earnings available for fixed charges | $ | 907 | ||
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Fixed Charges: | ||||
Net interest expense(1) | $ | 167 | ||
Portion of rental expense representative of interest | 9 | |||
Fixed charges added to earnings | 176 | |||
Capitalized interest | 17 | |||
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$ | 193 | |||
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Ratio of earnings to fixed charges | 4.7 |
(1) | Includes interest expense of majority-owned subsidiaries and amortization of debt issuance costs. |