Exhibit 12.1
NEWMONT MINING CORPORATION AND SUBSIDIARIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(amounts in thousands except ratio)
The ratio of earnings to fixed charges represents income before income
taxes, interest expense 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 Company guarantees certain third party debt; however, it has not
been and does not expect to be required to pay any amounts associated with such
debt. Therefore, related interest on such debt has not been included in the
ratio of earnings to fixed charges.
For the Year Ended December 31,
---------------------------------------------------------------
2002 2001 2000 1999 1998/(3)/
--------- ---------- --------- --------- ----------
Earnings:
Income before income taxes (1) ......... $ 118,884 $ (128,425) $ (30,033) $ (9,019) $ (646,348)
Adjustments:
Net interest expense (2) .............. 129,565 98,080 106,120 83,185 96,618
Amortization of capitalized interest .. 9,526 7,362 8,793 4,886 4,435
Portion of rental expense
representative of interest ......... 3,017 2,747 2,936 2,914 4,361
Undistributed income of affiliate ..... 35,595 22,513 (17,930) (91,788) (105,932)
Minority interest of majority-owned
subsidiaries ....................... 97,442 65,374 92,814 44,141 71,825
--------- ---------- --------- --------- ----------
$ 394,029 $ 67,651 $ 162,700 $ 34,319 $ (575,041)
========= ========== ========= ========= ==========
Fixed Charges:
Net interest expense (2) ............... $ 129,565 $ 98,080 $ 106,120 $ 83,185 $ 96,600
Capitalized interest ................... 5,226 10,633 5,534 23,345 13,720
Portion of rental expense
representative of interest .......... 3,017 2,747 2,936 2,914 4,361
--------- ---------- --------- --------- ----------
$ 137,808 $ 111,460 $ 114,590 $ 109,444 $ 114,681
========= ========== ========= ========= ==========
Ratio of earnings to fixed charges ....... 2.86 /(4)/ 1.4 /(4)/ /(4)/
--------- ---------- --------- --------- ----------
- -------
(1) Pre-tax income (loss) before minority interest, equity income (loss) of
affiliates and cumulative effect of a change in accounting principle, net
of minority interest in income of affiliates.
(2) Includes interest expense of majority-owned subsidiaries and amortization
of debt issuance costs.
(3) As a result of the restatement of the Company's Consolidated Financial
Statements (see Item 7 Management's Discussion and Analysis), the financial
information for the year 1998 is derived from unaudited Consolidated
Financial Statements.
(4) The ratio was less than 1:1 for the years ended December 31, 2001, 1999 and
1998 as earnings were inadequate to cover fixed charges by deficiencies of
$43.8 million, $75.1 million and $689.7 million, respectively.