Newmont Mining Corporation (NYSE: NEM) (“Newmont” or the “Company”)
today reported first quarter 2014 financial and operating results.
“We are building on the momentum we established in 2013 with strong cost
and production performance in the first quarter of 2014,” said Gary
Goldberg, President and Chief Executive Officer. “Our team drove down
all-in sustaining costs by $82 million compared to the prior year
quarter through sustainable cost and efficiency improvements. We are
also delivering on our commitment to improve mining fundamentals, which
led to a 40 percent increase in gold production at Tanami compared to
the prior year quarter. We are confident we can maintain this trajectory
as the year progresses, as evidenced by our updated outlook for lower
costs and higher production for Africa.”
Highlights for the first quarter
-
Achieved reported net income attributable to shareholders from
continuing operations of $117 million, or $0.23 per basic share, and
adjusted net income1 of $108 million, or $0.22 per basic
share;
-
Generated cash from continuing operations of $183 million;
-
Generated cost savings of $82 million in gold all-in sustaining costs2
(“AISC”), which equates to $1,034 per ounce, down 8 percent from the
prior year quarter;
-
Realized costs applicable to sales (“CAS”) of $751 per ounce of gold
and $2.71 per pound of copper, a decrease of 1 percent and an increase
of 19 percent, respectively, over first quarter last year;
-
Delivered 1.2 million ounces and 24 thousand tonnes of attributable
gold and copper production, with higher gold production coming from
our Australia/New Zealand and Africa operations;
-
Improved AISC outlook3 by 13 percent, and production
outlook by 2 percent in Africa; and
-
Declared a second quarter dividend of $0.025 per share in accordance
with the Company’s gold price-linked dividend policy4.
First Quarter Financial Results
The Company reported attributable net income from continuing operations
of $117 million, or $0.23 per basic share, compared with $314 million,
or $0.63 per share in 2013. The Company reported adjusted net income of
$108 million, or $0.22 per basic share, compared with $353 million, or
$0.70 per basic share a year earlier. Improved production and stable
operating costs relative to the prior year quarter were offset by
declines in average realized gold and copper prices of approximately 21
percent and 20 percent, respectively. Reduced spending on exploration,
advanced projects, and sustaining capital also led to $82 million in
lower gold AISC this quarter.
Summary of first quarter 2014 financial results compared with 2013:
-
Generated revenue of $1.8 billion compared with $2.2 billion in 2013;
-
Gold and copper AISC of $1,034 per ounce and $3.67 per pound,
respectively, compared with $1,121 per ounce and $3.38 per pound,
respectively;
-
Average realized gold and copper price of $1,293 per ounce and $2.50
per pound, respectively, compared with $1,631 per ounce and $3.12 per
pound, respectively;
-
Gold and copper CAS of $751 per ounce and $2.71 per pound,
respectively, compared with $760 per ounce and $2.27 per pound,
respectively; and
-
Cash flow from continuing operations of $183 million compared with
$439 million.
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First Quarter Operating Results
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Summary Production Table
|
|
(Attributable production, Koz and kt)
|
|
Region
|
|
|
Q1 2014
|
|
|
Q1 2013
|
|
|
Change
|
|
North America
|
|
|
405
|
|
|
436
|
|
|
-7%
|
|
South America
|
|
|
122
|
|
|
162
|
|
|
-25%
|
|
Australia/New Zealand
|
|
|
450
|
|
|
435
|
|
|
3%
|
|
Indonesia
|
|
|
8
|
|
|
7
|
|
|
14%
|
|
Africa
|
|
|
225
|
|
|
125
|
|
|
80%
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Total Gold
|
|
|
1,210
|
|
|
1,165
|
|
|
4%
|
|
North America
|
|
|
6
|
|
|
3
|
|
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100%
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Australia/New Zealand
|
|
|
8
|
|
|
8
|
|
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0%
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Indonesia
|
|
|
10
|
|
|
9
|
|
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11%
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Total Copper
|
|
|
24
|
|
|
20
|
|
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20%
|
|
|
|
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Summary CAS Table
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(Consolidated $/oz and $/lb)
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|
Region
|
|
|
Q1 2014
|
|
|
Q1 2013
|
|
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Change
|
|
North America
|
|
|
$726
|
|
|
$766
|
|
|
-5%
|
|
South America
|
|
|
$1,075
|
|
|
$576
|
|
|
87%
|
|
Australia/New Zealand
|
|
|
$783
|
|
|
$922
|
|
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-15%
|
|
Indonesia
|
|
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$1,283
|
|
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$993
|
|
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29%
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Africa
|
|
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$428
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|
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$555
|
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-23%
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Total Gold CAS
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$751
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$760
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-1%
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North America
|
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$2.39
|
|
|
$3.20
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|
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-25%
|
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Australia/New Zealand
|
|
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$2.63
|
|
|
$2.35
|
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12%
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Indonesia
|
|
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$2.99
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|
|
$2.05
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46%
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Total Copper CAS
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$2.71
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$2.27
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19%
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Summary All-in Sustaining Costs Table
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(Consolidated $/oz and $/lb)
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Region
|
|
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Q1 2014
|
|
|
Q1 2013
|
|
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Change
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North America
|
|
|
$958
|
|
|
$1,027
|
|
|
-7%
|
|
South America
|
|
|
$1,403
|
|
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$885
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59%
|
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Australia/New Zealand
|
|
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$942
|
|
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$1,136
|
|
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-17%
|
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Indonesia
|
|
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$2,167
|
|
|
$2,000
|
|
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8%
|
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Africa
|
|
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$616
|
|
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$1,126
|
|
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-45%
|
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Total Gold AISC
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|
|
$1,034
|
|
|
$1,121
|
|
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-8%
|
|
North America
|
|
|
$2.55
|
|
|
$3.75
|
|
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-32%
|
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Australia/New Zealand
|
|
|
$3.27
|
|
|
$2.95
|
|
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11%
|
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Indonesia
|
|
|
$4.63
|
|
|
$3.70
|
|
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25%
|
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Total Copper AISC
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|
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$3.67
|
|
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$3.38
|
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9%
|
|
|
|
|
|
|
|
|
|
|
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Attributable gold production increased approximately 4 percent from 2013
levels due to production from the new Akyem operation, as well as higher
production from Australian operations, partially offset by lower
production from Peru as a result of the planned stripping campaign at
Yanacocha. Attributable copper tonnes produced were 20 percent higher
with the contribution from the Phoenix Copper Leach operation in Nevada.
Gold CAS remained stable over last year. Gold AISC was reduced by 8
percent, primarily due to cost and efficiency improvements.
First Quarter Operating Results by Region
North America
Attributable gold production at Carlin decreased 1 percent from the
prior year quarter, primarily due to planned lower grades at Mill 6. CAS
per ounce increased 4 percent due to planned stockpile and leach pad
inventory adjustments, partially offset by lower operating costs.
Attributable gold production at Phoenix increased 4 percent from the
prior year quarter due to slightly higher grade at the Phoenix mill.
Copper pounds produced increased 71 percent due to production from the
Phoenix Copper Leach operation, which entered commercial production in
the fourth quarter of 2013. Gold CAS per ounce decreased 48 percent due
to higher ounces sold and a higher allocation of costs to copper with
the copper leach facility in production. Copper CAS per pound decreased
25 percent due to higher copper pounds sold as a result of the new
copper leach facility.
Attributable gold production at Twin Creeks decreased 3 percent from the
prior year quarter due to lower production following the sale of Midas,
partially offset by higher mill throughput at the Autoclave. CAS per
ounce decreased 1 percent due to more ounces sold.
Attributable gold production at La Herradura decreased 49 percent from
the prior year quarter due to the suspension of their explosives permit.
CAS per ounce decreased 6 percent due to a decrease in stripping with
the ramp up of production after receiving the explosives permit at the
end of February partially offset by lower ounces sold.
Gold AISC in North America was $958 per ounce, a decrease of 7 percent
over the prior year quarter due to realization of operating
efficiencies, reduced exploration and advanced project spend and reduced
royalties. Copper AISC was $2.55 per pound, a decrease of 32 percent
over prior year quarter due to increased copper production from Phoenix
Copper Leach.
South America
Attributable gold production at Yanacocha decreased 25 percent from the
prior year quarter mainly due to the planned stripping phase at the
Tapado Oeste pit. Production is expected to increase in the second half
of 2014 as mining returns to higher grade ore at Tapado Oeste. CAS per
ounce increased 87 percent from the prior year quarter primarily due to
higher direct mining costs associated with the current stripping
campaign.
Gold AISC in South America was $1,403 per ounce, an increase of 59
percent over the prior year quarter due to higher production costs and
lower volume resulting from the stripping campaign.
Australia/New Zealand
Attributable gold production at Boddington decreased 2 percent from the
prior year quarter, primarily due to lower grades. Copper production was
in line with the prior year quarter. Boddington realized record-setting
throughput levels this quarter due to sustainable process improvements
implemented through the Full Potential program. These benefits were
offset by the lower grades. Gold CAS decreased 3 percent per ounce due
to a combination of lower mill maintenance costs and favorable foreign
exchange rates. Copper CAS increased 12 percent per pound, primarily due
to planned stockpile inventory adjustments.
Attributable gold production at Tanami increased 40 percent from the
prior year quarter, primarily as a result of higher grades from the
Auron ore body and lower mining dilution from improved mining practices.
CAS per ounce decreased by 45 percent due to higher production coupled
with lower operating costs and favorable foreign exchange rates.
Attributable gold production at Jundee decreased 17 percent from the
prior year quarter primarily as a result of lower ore grade milled. CAS
per ounce decreased by 6 percent as a result of lower underground mining
costs and favorable foreign exchange rates, partially offset by lower
production.
Attributable gold production at Waihi decreased 10 percent from the
prior year quarter primarily as a result of lower ore grade milled and a
build-up of gold in circuit inventory, partially offset by higher
throughput. CAS per ounce decreased by 18 percent as a result of lower
underground mining costs.
Attributable gold production at KCGM increased 15 percent from the prior
year quarter primarily as a result of higher grades and tons milled. CAS
per ounce decreased by 17 percent as a result of the higher production.
Gold AISC in Australia/New Zealand was $942 per ounce, a decrease of 17
percent over the prior year quarter due to lower production costs,
exploration costs, and sustaining capital spend. Copper AISC was $3.27
per pound, an increase of 11 percent over the prior year due to higher
CAS per pound.
Indonesia
Attributable gold and copper production at Batu Hijau increased 14
percent and 11 percent, respectively, from the prior year quarter due to
higher ore grade and recovery for both gold and copper. However, the
Company was unable to export approximately 2 thousand attributable
ounces of gold and 2.5 thousand attributable tonnes of copper as a
result of new export regulations imposed in January 2014 by the
Indonesian government.
CAS increased 29 percent per ounce of gold and 46 percent per pound of
copper, due to the planned stockpile inventory adjustments and lower
ounces and pounds sold.
Gold AISC in Indonesia was $2,167 per ounce, an increase of 8 percent
over the prior year quarter and copper AISC was $4.63 per pound, an
increase of 25 percent over the prior year quarter, due to lower ounces
and pounds sold.
Africa
Attributable gold production at Ahafo decreased 16 percent from the
prior year quarter due to lower processed ore grade. CAS per ounce was
in line with the prior year. The new Akyem operation is performing well,
providing 120,000 ounces of production at CAS of $311 per ounce.
Gold AISC in Africa was $616 per ounce this quarter, a decrease of 45
percent over the prior year quarter due to new production at Akyem and
lower exploration and advanced project expense and sustaining capital.
Outlook Update
The Company continues to expect total attributable gold production of
between 4.6 to 4.9 million ounces at CAS of $740 to $790 per ounce and
AISC of $1,075 to $1,175 per ounce. The Company also continues to expect
total copper production of between 95 to 110 thousand tonnes at CAS of
$2.00 to $2.25 per pound and AISC of $2.75 to $2.95 per pound. As a
result of mine plan optimization at the Ahafo operation in Africa, the
Company is increasing production outlook from between 785,000 to 850,000
ounces to between 790,000 to 870,000 ounces for the region. Both Ahafo
and Akyem are realizing lower costs and the Company is reducing its
Africa regional CAS from $575 to $625 per ounce to $510 to $555 per
ounce, and AISC from $795 to $865 per ounce to $690 to $755 per ounce
for 2014. The Company also announced a decrease in expected interest
expense of $25 million. Offsetting that, the 2014 tax rate is now
expected to be between 37 and 40 percent, primarily due to the tax
treatment of the sale of Midas and higher taxes in Peru.
Balance Sheet and Financial Flexibility
Cash from continuing operations was $183 million. The Company also
received cash of $57 million from the sale of its Midas operation and
$25 million from the sale of its investment in Paladin Energy. At
quarter end, the Company held $1.5 billion of consolidated cash on its
balance sheet.
The Company also recently closed on a term loan of $575 million. The
term loan provides for a single, delayed drawdown through July 15, 2014,
with a maturity date five years from drawdown. The loan is intended to
retire the $575 million of convertible debt maturing July 2014. The
Company now expects a lower 2014 interest expense of between $325 to
$350 million. Concurrent with closing the term loan, the Company also
renewed its $3.0 billion corporate revolving credit facility, extending
the maturity date two years to March 31, 2019. At March 31, there were
no outstanding borrowings under the facility.
Capital Update
Total capital spent in the first quarter was $235 million. Capital
expenditures in North America during the first quarter of 2014 were
primarily related to the development of the Turf Leeville vent shaft in
Nevada. Capital expenditures in South America, Australia and New
Zealand, Indonesia, and Africa were primarily for sustaining capital.
The Company continues to manage its wider project portfolio to maintain
flexibility to address the development risks associated with its
projects including permitting, local community and government support,
engineering and procurement availability, technical issues, escalating
costs and other associated risks that could adversely impact the timing
and costs of certain opportunities.
Indonesia Update
In January 2014, the Indonesian government issued new regulations for
the export of copper concentrate that contain potentially restrictive
conditions for obtaining an export permit, as well as a significant,
progressive export duty. While the 2009 mining law preserves the
validity of PT Newmont Nusa Tenggara’s (“PTNNT”, the entity operating
the Batu Hijau mine) Contract of Work (the investment agreement entered
into by PTNNT and the Indonesian government in 1986, which includes the
right to export copper concentrates and a prohibition against new taxes,
duties, and levies), the Indonesian government has stated its intention
to enforce the new regulations on PTNNT’s operations and has not yet
recognized PTNNT’s rights to export copper concentrate and only pay the
taxes, duties, and levies specified in the Contract of Work. The Company
believes that these new 2014 regulations conflict with the Contract of
Work. Although PTNNT is continuing to engage with government officials
in Indonesia in an effort to resolve this issue and gain clarity on
implementation of the new regulations, while also considering other
remedies, including possible legal action, the Company can make no
assurances that the new regulations will not impact operations and/or
outlook. In April 2014, PTNNT received the required approval as a
registered exporter from the Ministry of Trade and continues working
through the process and engaging with the government to secure the newly
required export permit. At this time, operations continue at Batu Hijau.
However, to the extent there are continued delays in obtaining approvals
for 2014 exports, PTNNT will implement contingency plans to scale back
production taking into consideration copper concentrate storage capacity
and in-country smelter availability, which would impact the Company's
ability to achieve its outlook. For a discussion of this and other
factors which could impact future financial performance and operating
results in Indonesia, see Item 1A, under the heading “Risk Factors,” of
the Company’s Form 10-K, filed on February 21, 2014.
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__________
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1 Non-GAAP measure. See end of this release
for reconciliation to net income.
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2 Non-GAAP measure. See end of this release
for reconciliation to Costs applicable to sales.
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3 Outlook constitutes forward-looking
statements, which are subject to risk and uncertainties. See
Cautionary note at the end of this release.
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4 Such policy is non-binding; declaration of
future dividends remains subject to approval and discretion of the
Board of Directors.
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Operating Results Table
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First Quarter Consolidated and Attributable Production and
Consolidated CAS and AISC Results
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|
Region
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|
Q1 2014
Consolidated
Production
|
|
Q1 2014
Attributable
Production
|
|
Q1 2014
Consolidated
CAS
|
|
Q1 2014
Consolidated
AISCa
|
|
|
(Kozs, Kt)
|
|
(Kozs, Kt)
|
|
($/oz, $/lb)
|
|
($/oz, $/lb)
|
|
Carlin
|
|
228
|
|
228
|
|
$842
|
|
$956
|
|
Phoenixb
|
|
53
|
|
53
|
|
$625
|
|
$818
|
|
Twin Creeksc
|
|
96
|
|
96
|
|
$536
|
|
$874
|
|
La Herradurad
|
|
28
|
|
28
|
|
$671
|
|
$1,087
|
|
North America
|
|
405
|
|
405
|
|
$726
|
|
$958
|
|
Yanacochae
|
|
208
|
|
107
|
|
$1,075
|
|
$1,364
|
|
La Zanjaf
|
|
n/a
|
|
15
|
|
n/a
|
|
n/a
|
|
South America
|
|
208
|
|
122
|
|
$1,075
|
|
$1,403
|
|
Boddington
|
|
174
|
|
174
|
|
$851
|
|
$970
|
|
Tanami
|
|
84
|
|
84
|
|
$681
|
|
$963
|
|
Jundee
|
|
63
|
|
63
|
|
$667
|
|
$841
|
|
Waihi
|
|
27
|
|
27
|
|
$753
|
|
$800
|
|
KCGMd
|
|
90
|
|
90
|
|
$839
|
|
$880
|
|
Duketonf
|
|
n/a
|
|
12
|
|
n/a
|
|
n/a
|
|
Australia/New Zealand
|
|
438
|
|
450
|
|
$783
|
|
$942
|
|
Batu Hijau, Indonesiae
|
|
16
|
|
8
|
|
$1,283
|
|
$2,167
|
|
Ahafo
|
|
105
|
|
105
|
|
$554
|
|
$864
|
|
Akyem
|
|
120
|
|
120
|
|
$311
|
|
$361
|
|
Africa
|
|
225
|
|
225
|
|
$428
|
|
$616
|
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Total Gold
|
|
1,292
|
|
1,210
|
|
$751
|
|
$1,034
|
|
Phoenix
|
|
6
|
|
6
|
|
$2.39
|
|
$2.55
|
|
Boddington
|
|
8
|
|
8
|
|
$2.63
|
|
$3.27
|
|
Batu Hijaue
|
|
21
|
|
10
|
|
$2.99
|
|
$4.63
|
|
Total Copper
|
|
35
|
|
24
|
|
$2.71
|
|
$3.67
|
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aAll-in sustaining cost (“AISC”) is a
non-GAAP metric defined as the sum of cost applicable to sales
(including all direct and indirect costs related to current gold
production incurred to execute on the current mine plan),
remediation costs (including operating accretion and amortization
of asset retirement costs), G&A, exploration expense, advanced
projects and R&D, treatment and refining costs, other expense, net
of one-time adjustments and sustaining capital.
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bIncludes Lone Tree operations.
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cIncludes GTRJV operations.
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dBoth consolidated and attributable
production are shown on a pro-rata basis with a 44% ownership
interest for La Herradura and a 50% ownership for KCGM.
|
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eConsolidated production for Yanacocha and
Batu Hijau are presented on a total production basis for the mine
site; whereas attributable production represents a 51.35%
ownership interest for Yanacocha, and a 48.5% interest for Batu
Hijau.
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fLa Zanja and Duketon are not included in the
consolidated figures above; attributable production figures are
presented based upon a 46.94% ownership interest at La Zanja and a
19.25% ownership interest in Duketon.
|
|
|
Outlook Tables
|
2014 Consolidated and Attributable Production, CAS, AISC, and
Capital Outlooka
|
|
Region
|
|
2014
Consolidated
Production
|
|
2014
Attributable
Production
|
|
2014
Consolidated
CAS
|
|
2014 All-in
Sustaining
Costsb
|
|
2014
Consolidated
Capital
|
|
|
(Kozs, Kt)
|
|
(Kozs, kt)
|
|
($/oz, $/lb)
|
|
($/oz, $/t)
|
|
Expenditures
($M)
|
|
Carlin
|
|
830 - 910
|
|
830 - 910
|
|
$790 - $860
|
|
|
|
$275 - $300
|
|
Phoenixc
|
|
195 - 215
|
|
195 - 215
|
|
$655 - $715
|
|
|
|
$30 - $40
|
|
Twin Creeksd
|
|
330 - 360
|
|
330 - 360
|
|
$550 - $600
|
|
|
|
$110 - $130
|
|
La Herradurae
|
|
185 - 200
|
|
185 - 200
|
|
$800 - $875
|
|
|
|
$90 - $100
|
|
Other North America
|
|
|
|
|
|
|
|
|
|
$20 - $30
|
|
North America
|
|
1,550 - 1,650
|
|
1,550 - 1,650
|
|
$720 - $790
|
|
$1,045 - $1,135
|
|
$540 - $600
|
|
Yanacochaf
|
|
895 - 985
|
|
460 - 500
|
|
$725 - $790
|
|
|
|
$180 - $200
|
|
La Zanjag
|
|
|
|
50 - 60
|
|
|
|
|
|
|
|
Other South America
|
|
|
|
|
|
|
|
|
|
$25 - $50
|
|
South America
|
|
895 - 985
|
|
510 - 560
|
|
$725 - $790
|
|
$1,115 - $1,205
|
|
$200 - $250
|
|
Boddington
|
|
665 - 725
|
|
665 - 725
|
|
$880 - $960
|
|
|
|
$100 - $115
|
|
Tanami
|
|
300 - 325
|
|
300 - 325
|
|
$750 - $825
|
|
|
|
$90 - $100
|
|
Jundee
|
|
210 - 230
|
|
210 - 230
|
|
$765 - $835
|
|
|
|
$25 - $35
|
|
Waihi
|
|
100 - 115
|
|
100 - 115
|
|
$755 - $825
|
|
|
|
$10 - $20
|
|
KCGMe
|
|
300 - 330
|
|
300 - 330
|
|
$990 - $1,080
|
|
|
|
$30 - $40
|
|
Duketong
|
|
|
|
55 - 65
|
|
|
|
|
|
|
|
Other Australia/NZ
|
|
|
|
|
|
|
|
|
|
$5 - $15
|
|
Australia/New Zealand
|
|
1,600 - 1,700
|
|
1,650 - 1,750
|
|
$855 - $930
|
|
$1,045 - $1,135
|
|
$275 - $300
|
|
Batu Hijau, Indonesiah
|
|
135 - 150
|
|
60 - 65
|
|
$630 - $690
|
|
$945 - $1,025
|
|
$125 - $150
|
|
Ahafo
|
|
375 - 410
|
|
375 - 410
|
|
$580 - $650
|
|
|
|
$100 - $115
|
|
Akyem
|
|
415 - 460
|
|
415 - 460
|
|
$435 - $495
|
|
|
|
$15 - $25
|
|
Africa
|
|
790 - 870
|
|
790 - 870
|
|
$510 - $555
|
|
$690 - $755
|
|
$115 - $140
|
|
Corporate/Other
|
|
|
|
|
|
|
|
|
|
$20 - $25
|
|
Total Gold
|
|
5,000 - 5,350
|
|
4,625 - 4,900
|
|
$740 - $790
|
|
$1,075 - $1,175
|
|
$1,300 - $1,400
|
|
Phoenix
|
|
15 - 25
|
|
15 - 25
|
|
$2.25 - $2.50
|
|
|
|
|
|
Boddington
|
|
25 - 35
|
|
25 - 35
|
|
$2.50 - $2.80
|
|
|
|
|
|
Batu Hijauh
|
|
110 - 125
|
|
45 - 55
|
|
$1.75 - $2.00
|
|
|
|
|
|
Total Copper
|
|
160 - 175
|
|
95 - 110
|
|
$2.00 - $2.25
|
|
$2.75 - $2.95
|
|
|
|
aThe outlook ranges presented herein represent
forward looking statements, which are subject to certain risks and
uncertainties. See cautionary statement at the end of this release.
Additionally, individual site ranges in the table above may not sum
to total regional or Company levels to provide for portfolio
flexibility.
|
|
bAll-in sustaining cost (“AISC”) is a non-GAAP
metric defined as the sum of cost applicable to sales (including all
direct and indirect costs related to current gold production
incurred to execute on the current mine plan), remediation costs
(including operating accretion and amortization of asset retirement
costs), G&A, exploration expense, advanced projects and R&D,
treatment and refining costs, other expense, net of one-time
adjustments and sustaining capital.
|
|
cIncludes Lone Tree operations.
|
|
dIncludes GTRJV operations.
|
|
eBoth consolidated and attributable
production are shown on a pro-rata basis with a 44% ownership
interest for La Herradura and a 50% ownership for KCGM.
|
|
fConsolidated production for Yanacocha is
presented on a total production basis for the mine site; whereas
attributable production represents a 51.35% ownership interest.
|
|
gLa Zanja and Duketon are not included in the
consolidated figures above; attributable production figures are
presented based upon a 46.94% ownership interest at La Zanja and a
19.25% ownership interest in Duketon.
|
|
hConsolidated production for Batu Hijau is
presented on a total production basis for the mine site; whereas
attributable production represents an expected 44.5625% ownership
interest in 2014 outlook (which assumes completion of the
remaining share divestiture). This outlook remains subject to
change pending clarification regarding the export regulations
issued by the Government of Indonesia, which have the potential to
impact future operating plans. See page 5 under the heading
Indonesia Update for additional information. The Company’s ability
to achieve 2014 outlook and estimates assumes the continuation of
current operating plans, receipt of export approvals and other
factors. Additionally, for a discussion of factors which could
impact future financial performance and operating results in
Indonesia, see Item 1A, under the heading “Risk Factors,” of the
Company’s Form 10-K, filed on February 21, 2014.
|
|
|
|
Consolidated and Attributable Production (Moz, kt)
|
|
|
|
|
2014
|
|
|
2015
|
|
|
2016
|
|
|
|
|
Outlook
|
|
|
Outlook
|
|
|
Outlook
|
|
Gold (Consolidated Moz)
|
|
|
5.0 – 5.4
|
|
|
5.5 – 5.9
|
|
|
5.5 – 5.9
|
|
Gold (Attributable Moz)
|
|
|
4.6 – 4.9
|
|
|
4.8 – 5.2
|
|
|
4.8 – 5.2
|
|
Copper (Consolidated kt)
|
|
|
160 – 175
|
|
|
280 – 295
|
|
|
225 – 240
|
|
Copper (Attributable kt)
|
|
|
95 - 110
|
|
|
145 - 160
|
|
|
125 – 140
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated CAS ($/oz, $/lb)
|
|
|
|
|
2014
|
|
|
2015
|
|
|
2016
|
|
Region
|
|
|
Outlook
|
|
|
Outlook
|
|
|
Outlook
|
|
North America
|
|
|
$720 - $790
|
|
|
$740 - $810
|
|
|
$680 - $740
|
|
South America
|
|
|
$725 - $790
|
|
|
$560 - $615
|
|
|
$920 - $1,010
|
|
Australia/New Zealand
|
|
|
$855 - $930
|
|
|
$830 - $910
|
|
|
$850 - $925
|
|
Batu Hijau, Indonesia
|
|
|
$630 - $690
|
|
|
$380 - $420
|
|
|
$440 - $480
|
|
Africa
|
|
|
$510 - $555
|
|
|
$695 - $760
|
|
|
$730 - $800
|
|
Total Gold
|
|
|
$740 - $790
|
|
|
$690 - $740
|
|
|
$740 - $790
|
|
Total Copper
|
|
|
$2.00 - $2.25
|
|
|
$1.20 - $1.45
|
|
|
$1.40 - $1.65
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated AISC ($/oz, $/lb)
|
|
|
|
|
2014
|
|
|
2015
|
|
|
2016
|
|
Region
|
|
|
Outlook
|
|
|
Outlook
|
|
|
Outlook
|
|
North America
|
|
|
$1,045 - $1,135
|
|
|
$955 - $1,045
|
|
|
$835 - $925
|
|
South America
|
|
|
$1,115 - $1,205
|
|
|
$900 - $990
|
|
|
$1,450 - $1,540
|
|
Australia/New Zealand
|
|
|
$1,045 - $1,135
|
|
|
$975 - $1,065
|
|
|
$985 - $1,075
|
|
Batu Hijau, Indonesia
|
|
|
$945 - $1,025
|
|
|
$510 - $590
|
|
|
$575 - $655
|
|
Africa
|
|
|
$690 - $755
|
|
|
$875 - $955
|
|
|
$885 - $965
|
|
Total Gold
|
|
|
$1,075 - $1,175
|
|
|
$950 - $1,050
|
|
|
$985 - $1,085
|
|
Total Copper
|
|
|
$2.75 - $2.95
|
|
|
$1.60 - $1.85
|
|
|
$1.80 - $2.05
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Capital Expenditures ($M)
|
|
|
|
|
2014
|
|
|
2015
|
|
|
2016
|
|
Region
|
|
|
Outlook
|
|
|
Outlook
|
|
|
Outlook
|
|
North America
|
|
|
$540 - $600
|
|
|
$430 - $475
|
|
|
$270 - $295
|
|
South America
|
|
|
$200 - $250
|
|
|
$140 - $155
|
|
|
$165 - $180
|
|
Australia/New Zealand
|
|
|
$275 - $300
|
|
|
$220 - $245
|
|
|
$190 - $210
|
|
Batu Hijau, Indonesia
|
|
|
$125 - $150
|
|
|
$130 - $145
|
|
|
$120 - $130
|
|
Africa
|
|
|
$115 - $140
|
|
|
$80 - $90
|
|
|
$80 - $90
|
|
Total
|
|
|
$1,300 - $1,400
|
|
|
$1,000 - $1,100
|
|
|
$900 - $1,000
|
|
|
|
|
|
|
|
|
|
|
|
|
2014 Expense Outlook
|
|
Description
|
|
|
2014
Consolidated
Expenses ($M)
|
|
|
|
|
|
|
General & Administrative
|
|
|
$175 - $200
|
|
Other Expense
|
|
|
$150 - $175
|
|
Interest Expense
|
|
|
$325 - $350
|
|
DD&A
|
|
|
$1,050 - $1,125
|
|
Exploration and Projects
|
|
|
$400 - $450
|
|
Sustaining Capital
|
|
|
$1,200 - $1,300
|
|
Tax Rate
|
|
|
37% - 40%
|
|
|
|
|
|
|
|
|
|
NEWMONT MINING CORPORATION
|
|
|
|
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
|
|
(unaudited, in millions except per share)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
March 31,
|
|
|
|
2014
|
|
2013
|
|
|
|
|
|
|
|
|
|
Sales
|
|
$
|
1,764
|
|
|
$
|
2,188
|
|
|
|
|
|
|
|
|
|
|
Costs and expenses
|
|
|
|
|
|
|
|
Costs applicable to sales (1)
|
|
|
1,083
|
|
|
|
1,057
|
|
|
Amortization
|
|
|
298
|
|
|
|
267
|
|
|
Reclamation and remediation
|
|
|
20
|
|
|
|
18
|
|
|
Exploration
|
|
|
34
|
|
|
|
59
|
|
|
Advanced projects, research and development
|
|
|
42
|
|
|
|
52
|
|
|
General and administrative
|
|
|
45
|
|
|
|
56
|
|
|
Other expense, net
|
|
|
52
|
|
|
|
100
|
|
|
|
|
|
1,574
|
|
|
|
1,609
|
|
|
Other income (expense)
|
|
|
|
|
|
|
|
Other income, net
|
|
|
46
|
|
|
|
26
|
|
|
Interest expense, net
|
|
|
(93
|
)
|
|
|
(65
|
)
|
|
|
|
|
(47
|
)
|
|
|
(39
|
)
|
|
Income before income and mining tax and other items
|
|
|
143
|
|
|
|
540
|
|
|
Income and mining tax expense
|
|
|
(78
|
)
|
|
|
(180
|
)
|
|
Equity income (loss) of affiliates
|
|
|
-
|
|
|
|
(4
|
)
|
|
Income from continuing operations
|
|
|
65
|
|
|
|
356
|
|
|
Income (loss) from discontinued operations
|
|
|
(17
|
)
|
|
|
-
|
|
|
Net income
|
|
|
48
|
|
|
|
356
|
|
|
Net loss (income) attributable to noncontrolling interests
|
|
|
52
|
|
|
|
(42
|
)
|
|
Net income attributable to Newmont stockholders
|
|
$
|
100
|
|
|
$
|
314
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) attributable to Newmont stockholders:
|
|
|
|
|
|
|
|
Continuing operations
|
|
$
|
117
|
|
|
$
|
314
|
|
|
Discontinued operations
|
|
|
(17
|
)
|
|
|
-
|
|
|
|
|
$
|
100
|
|
|
$
|
314
|
|
|
Income (loss) per common share
|
|
|
|
|
|
|
|
Basic:
|
|
|
|
|
|
|
|
Continuing operations
|
|
$
|
0.23
|
|
|
$
|
0.63
|
|
|
Discontinued operations
|
|
|
(0.03
|
)
|
|
|
-
|
|
|
|
|
$
|
0.20
|
|
|
$
|
0.63
|
|
|
Diluted:
|
|
|
|
|
|
|
|
Continuing operations
|
|
$
|
0.23
|
|
|
$
|
0.63
|
|
|
Discontinued operations
|
|
|
(0.03
|
)
|
|
|
-
|
|
|
|
|
$
|
0.20
|
|
|
$
|
0.63
|
|
|
|
|
|
|
|
|
|
|
Cash dividends declared per common share
|
|
$
|
0.150
|
|
|
$
|
0.425
|
|
|
__________
|
|
(1) Excludes Amortization and Reclamation and
remediation.
|
|
|
|
|
|
|
|
NEWMONT MINING CORPORATION
|
|
|
|
|
|
|
|
|
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
(unaudited, in millions)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
March 31,
|
|
|
|
2014
|
|
2013
|
|
Operating activities:
|
|
|
|
|
|
|
|
Net income
|
|
$
|
48
|
|
|
$
|
356
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
Amortization
|
|
|
298
|
|
|
|
267
|
|
|
Stock based compensation and other non-cash benefits
|
|
|
13
|
|
|
|
19
|
|
|
Reclamation and remediation
|
|
|
20
|
|
|
|
18
|
|
|
Loss (income) from discontinued operations
|
|
|
17
|
|
|
|
-
|
|
|
Impairment of marketable securities
|
|
|
1
|
|
|
|
4
|
|
|
Deferred income taxes
|
|
|
35
|
|
|
|
(11
|
)
|
|
Gain on asset and investment sales, net
|
|
|
(50
|
)
|
|
|
(1
|
)
|
|
Other operating adjustments and write-downs
|
|
|
151
|
|
|
|
74
|
|
|
Net change in operating assets and liabilities
|
|
|
(350
|
)
|
|
|
(287
|
)
|
|
Net cash provided from continuing operations
|
|
|
183
|
|
|
|
439
|
|
|
Net cash used in discontinued operations
|
|
|
(3
|
)
|
|
|
(6
|
)
|
|
Net cash provided from operations
|
|
|
180
|
|
|
|
433
|
|
|
Investing activities:
|
|
|
|
|
|
|
|
Additions to property, plant and mine development
|
|
|
(235
|
)
|
|
|
(510
|
)
|
|
Acquisitions, net
|
|
|
(28
|
)
|
|
|
(8
|
)
|
|
Sale of marketable securities
|
|
|
25
|
|
|
|
1
|
|
|
Purchases of marketable securities
|
|
|
(1
|
)
|
|
|
(1
|
)
|
|
Proceeds from sale of other assets
|
|
|
70
|
|
|
|
25
|
|
|
Other
|
|
|
(9
|
)
|
|
|
(14
|
)
|
|
Net cash used in investing activities
|
|
|
(178
|
)
|
|
|
(507
|
)
|
|
Financing activities:
|
|
|
|
|
|
|
|
Proceeds from debt, net
|
|
|
3
|
|
|
|
80
|
|
|
Proceeds from stock issuance, net
|
|
|
-
|
|
|
|
1
|
|
|
Sale of noncontrolling interests
|
|
|
-
|
|
|
|
32
|
|
|
Acquisition of noncontrolling interests
|
|
|
(2
|
)
|
|
|
(6
|
)
|
|
Dividends paid to common stockholders
|
|
|
(77
|
)
|
|
|
(211
|
)
|
|
Other
|
|
|
(4
|
)
|
|
|
(1
|
)
|
|
Net cash provided from (used in) financing activities
|
|
|
(80
|
)
|
|
|
(105
|
)
|
|
Effect of exchange rate changes on cash
|
|
|
(2
|
)
|
|
|
(4
|
)
|
|
Net change in cash and cash equivalents
|
|
|
(80
|
)
|
|
|
(183
|
)
|
|
Cash and cash equivalents at beginning of period
|
|
|
1,555
|
|
|
|
1,561
|
|
|
Cash and cash equivalents at end of period
|
|
$
|
1,475
|
|
|
$
|
1,378
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NEWMONT MINING CORPORATION
|
|
|
|
|
|
|
|
|
|
CONDENSED CONSOLIDATED BALANCE SHEETS
|
|
(unaudited, in millions)
|
|
|
|
|
|
|
|
|
|
|
|
At March 31,
|
|
At December 31,
|
|
|
|
2014
|
|
2013
|
|
ASSETS
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
1,475
|
|
|
$
|
1,555
|
|
|
Trade receivables
|
|
|
206
|
|
|
|
230
|
|
|
Accounts receivable
|
|
|
319
|
|
|
|
252
|
|
|
Investments
|
|
|
83
|
|
|
|
78
|
|
|
Inventories
|
|
|
814
|
|
|
|
717
|
|
|
Stockpiles and ore on leach pads
|
|
|
760
|
|
|
|
805
|
|
|
Deferred income tax assets
|
|
|
239
|
|
|
|
246
|
|
|
Other current assets
|
|
|
1,351
|
|
|
|
1,006
|
|
|
Current assets
|
|
|
5,247
|
|
|
|
4,889
|
|
|
Property, plant and mine development, net
|
|
|
14,138
|
|
|
|
14,277
|
|
|
Investments
|
|
|
393
|
|
|
|
439
|
|
|
Stockpiles and ore on leach pads
|
|
|
2,723
|
|
|
|
2,680
|
|
|
Deferred income tax assets
|
|
|
1,416
|
|
|
|
1,473
|
|
|
Other long-term assets
|
|
|
881
|
|
|
|
849
|
|
|
Total assets
|
|
$
|
24,798
|
|
|
$
|
24,607
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES
|
|
|
|
|
|
|
|
Debt
|
|
$
|
615
|
|
|
$
|
595
|
|
|
Accounts payable
|
|
|
463
|
|
|
|
478
|
|
|
Employee-related benefits
|
|
|
247
|
|
|
|
341
|
|
|
Income and mining taxes
|
|
|
27
|
|
|
|
13
|
|
|
Other current liabilities
|
|
|
1,532
|
|
|
|
1,313
|
|
|
Current liabilities
|
|
|
2,884
|
|
|
|
2,740
|
|
|
Debt
|
|
|
6,146
|
|
|
|
6,145
|
|
|
Reclamation and remediation liabilities
|
|
|
1,519
|
|
|
|
1,513
|
|
|
Deferred income tax liabilities
|
|
|
696
|
|
|
|
635
|
|
|
Employee-related benefits
|
|
|
333
|
|
|
|
323
|
|
|
Other long-term liabilities
|
|
|
339
|
|
|
|
342
|
|
|
Total liabilities
|
|
|
11,917
|
|
|
|
11,698
|
|
|
|
|
|
|
|
|
|
|
EQUITY
|
|
|
|
|
|
|
|
Common stock
|
|
|
798
|
|
|
|
789
|
|
|
Additional paid-in capital
|
|
|
8,458
|
|
|
|
8,441
|
|
|
Accumulated other comprehensive income (loss)
|
|
|
(205
|
)
|
|
|
(182
|
)
|
|
Retained earnings
|
|
|
968
|
|
|
|
945
|
|
|
Newmont stockholders’ equity
|
|
|
10,019
|
|
|
|
9,993
|
|
|
Noncontrolling interests
|
|
|
2,862
|
|
|
|
2,916
|
|
|
Total equity
|
|
|
12,881
|
|
|
|
12,909
|
|
|
Total liabilities and equity
|
|
$
|
24,798
|
|
|
$
|
24,607
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Regional Operating Statistics
|
|
Production Statistics Summary
|
|
|
|
Three Months Ended March 31,
|
|
|
|
2014
|
|
|
2013
|
|
Consolidated gold ounces produced (thousands):
|
|
|
|
|
|
|
North America
|
|
|
|
|
|
|
Carlin
|
|
228
|
|
|
231
|
|
Phoenix
|
|
53
|
|
|
51
|
|
Twin Creeks
|
|
96
|
|
|
99
|
|
La Herradura
|
|
28
|
|
|
55
|
|
|
|
405
|
|
|
436
|
|
South America
|
|
|
|
|
|
|
Yanacocha
|
|
208
|
|
|
285
|
|
|
|
|
|
|
|
|
Australia/New Zealand
|
|
|
|
|
|
|
Boddington
|
|
174
|
|
|
177
|
|
Tanami
|
|
84
|
|
|
60
|
|
Jundee
|
|
63
|
|
|
76
|
|
Waihi
|
|
27
|
|
|
30
|
|
Kalgoorlie
|
|
90
|
|
|
78
|
|
|
|
438
|
|
|
421
|
|
Indonesia
|
|
|
|
|
|
|
Batu Hijau
|
|
16
|
|
|
14
|
|
|
|
|
|
|
|
|
Africa
|
|
|
|
|
|
|
Ahafo
|
|
105
|
|
|
125
|
|
Akyem
|
|
120
|
|
|
-
|
|
|
|
225
|
|
|
125
|
|
|
|
1,292
|
|
|
1,281
|
|
Consolidated copper pounds produced (millions):
|
|
|
|
|
|
|
Phoenix
|
|
12
|
|
|
7
|
|
Boddington
|
|
17
|
|
|
18
|
|
Batu Hijau
|
|
48
|
|
|
40
|
|
|
|
77
|
|
|
65
|
|
Consolidated copper tonnes produced (thousands):
|
|
|
|
|
|
|
Phoenix
|
|
6
|
|
|
3
|
|
Boddington
|
|
8
|
|
|
8
|
|
Batu Hijau
|
|
21
|
|
|
18
|
|
|
|
35
|
|
|
29
|
|
|
|
|
|
|
|
Three Months Ended March 31,
|
|
|
|
2014
|
|
|
2013
|
|
Attributable gold ounces produced (thousands):
|
|
|
|
|
|
|
North America
|
|
|
|
|
|
|
Carlin
|
|
228
|
|
|
231
|
|
Phoenix
|
|
53
|
|
|
51
|
|
Twin Creeks
|
|
96
|
|
|
99
|
|
La Herradura
|
|
28
|
|
|
55
|
|
|
|
405
|
|
|
436
|
|
South America
|
|
|
|
|
|
|
Yanacocha
|
|
107
|
|
|
147
|
|
Other South America Equity Interests
|
|
15
|
|
|
15
|
|
|
|
122
|
|
|
162
|
|
Australia/New Zealand
|
|
|
|
|
|
|
Boddington
|
|
174
|
|
|
177
|
|
Tanami
|
|
84
|
|
|
60
|
|
Jundee
|
|
63
|
|
|
76
|
|
Waihi
|
|
27
|
|
|
30
|
|
Kalgoorlie
|
|
90
|
|
|
78
|
|
Other Australia/New Zealand Equity Interests
|
|
12
|
|
|
14
|
|
|
|
450
|
|
|
435
|
|
Indonesia
|
|
|
|
|
|
|
Batu Hijau
|
|
8
|
|
|
7
|
|
|
|
|
|
|
|
|
Africa
|
|
|
|
|
|
|
Ahafo
|
|
105
|
|
|
125
|
|
Akyem
|
|
120
|
|
|
-
|
|
|
|
225
|
|
|
125
|
|
|
|
1,210
|
|
|
1,165
|
|
Attributable copper pounds produced (millions):
|
|
|
|
|
|
|
Phoenix
|
|
12
|
|
|
7
|
|
Boddington
|
|
17
|
|
|
18
|
|
Batu Hijau
|
|
23
|
|
|
20
|
|
|
|
52
|
|
|
45
|
|
Attributable copper tonnes produced (thousands):
|
|
|
|
|
|
|
Phoenix
|
|
6
|
|
|
3
|
|
Boddington
|
|
8
|
|
|
8
|
|
Batu Hijau
|
|
10
|
|
|
9
|
|
|
|
24
|
|
|
20
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs Applicable to Sales
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31,
|
|
|
|
2014
|
|
2013
|
|
Gold
|
|
|
|
|
|
|
|
Costs Applicable to Sales ($/ounce)(1)
|
|
|
|
|
|
|
|
North America
|
|
|
|
|
|
|
|
Carlin
|
|
$
|
842
|
|
$
|
806
|
|
Phoenix
|
|
|
625
|
|
|
1,199
|
|
Twin Creeks
|
|
|
536
|
|
|
544
|
|
La Herradura
|
|
|
671
|
|
|
717
|
|
|
|
|
726
|
|
|
766
|
|
South America
|
|
|
|
|
|
|
|
Yanacocha
|
|
|
1,075
|
|
|
576
|
|
|
|
|
|
|
|
|
|
Australia/New Zealand
|
|
|
|
|
|
|
|
Boddington
|
|
|
851
|
|
|
873
|
|
Tanami
|
|
|
681
|
|
|
1,247
|
|
Jundee
|
|
|
667
|
|
|
710
|
|
Waihi
|
|
|
753
|
|
|
920
|
|
Kalgoorlie
|
|
|
839
|
|
|
1,006
|
|
|
|
|
783
|
|
|
922
|
|
Indonesia
|
|
|
|
|
|
|
|
Batu Hijau
|
|
|
1,283
|
|
|
993
|
|
|
|
|
|
|
|
|
|
Africa
|
|
|
|
|
|
|
|
Ahafo
|
|
|
554
|
|
|
555
|
|
Akyem
|
|
|
311
|
|
|
-
|
|
|
|
|
428
|
|
|
555
|
|
Average
|
|
$
|
751
|
|
$
|
760
|
|
Attributable to Newmont
|
|
$
|
722
|
|
$
|
781
|
|
|
|
|
|
|
|
|
|
Copper
|
|
|
|
|
|
|
|
Costs Applicable to Sales ($/pound)(1)
|
|
|
|
|
|
|
|
Phoenix
|
|
$
|
2.39
|
|
$
|
3.20
|
|
Boddington
|
|
|
2.63
|
|
|
2.35
|
|
Batu Hijau
|
|
|
2.99
|
|
|
2.05
|
|
Average
|
|
$
|
2.71
|
|
$
|
2.27
|
|
Attributable to Newmont
|
|
$
|
2.63
|
|
$
|
2.34
|
|
(1)Consolidated Costs applicable to sales excludes
Amortization and Reclamation and remediation.
|
|
|
|
|
|
|
|
|
|
|
|
Capital Expenditures
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31,
|
|
|
|
2014
|
|
2013
|
|
Consolidated Capital Expenditures ($ million)
|
|
|
|
|
|
|
|
North America
|
|
|
|
|
|
|
|
Nevada
|
|
$
|
42
|
|
$
|
46
|
|
Phoenix
|
|
|
7
|
|
|
31
|
|
Twin Creeks
|
|
|
32
|
|
|
25
|
|
La Herradura
|
|
|
6
|
|
|
19
|
|
Other North America
|
|
|
5
|
|
|
4
|
|
|
|
|
92
|
|
|
125
|
|
South America
|
|
|
|
|
|
|
|
Yanacocha
|
|
|
13
|
|
|
48
|
|
Other South America
|
|
|
7
|
|
|
86
|
|
|
|
|
20
|
|
|
134
|
|
Australia/New Zealand
|
|
|
|
|
|
|
|
Boddington
|
|
|
20
|
|
|
25
|
|
Kalgoorlie
|
|
|
20
|
|
|
23
|
|
Jundee
|
|
|
7
|
|
|
13
|
|
Tanami
|
|
|
3
|
|
|
3
|
|
Waihi
|
|
|
1
|
|
|
1
|
|
Other Australia/New Zealand
|
|
|
1
|
|
|
1
|
|
|
|
|
52
|
|
|
66
|
|
Indonesia
|
|
|
|
|
|
|
|
Batu Hijau
|
|
|
15
|
|
|
23
|
|
|
|
|
15
|
|
|
23
|
|
|
|
|
|
|
|
|
|
Africa
|
|
|
|
|
|
|
|
Ahafo
|
|
|
22
|
|
|
60
|
|
Akyem
|
|
|
1
|
|
|
66
|
|
|
|
|
23
|
|
|
126
|
|
Corporate and Other
|
|
|
6
|
|
|
23
|
|
Total - Accrual Basis
|
|
$
|
209
|
|
$
|
497
|
|
Change in Capital Accrual
|
|
|
26
|
|
|
13
|
|
Total - Cash Basis
|
|
$
|
235
|
|
$
|
510
|
|
Attributable to Newmont (Accrual Basis)
|
|
$
|
191
|
|
$
|
420
|
|
|
|
|
|
|
|
|
Supplemental Information
Non-GAAP Financial Measures
Non-GAAP financial measures are intended to provide additional
information only and do not have any standard meaning prescribed by
generally accepted accounting principles (“GAAP”). These measures should
not be considered in isolation or as a substitute for measures of
performance prepared in accordance with GAAP.
Reconciliation of Adjusted Net Income (loss) to GAAP Net Income (loss)
Management of the Company uses Adjusted net income to evaluate the
Company’s operating performance, and for planning and forecasting future
business operations. The Company believes the use of Adjusted net income
allows investors and analysts to compare results of the continuing
operations of the Company and its direct and indirect subsidiaries
relating to the production and sale of minerals to similar operating
results of other mining companies, by excluding exceptional or unusual
items. Management’s determination of the components of Adjusted net
income are evaluated periodically and based, in part, on a review of
non-GAAP financial measures used by mining industry analysts. Net income
attributable to Newmont stockholders is reconciled to Adjusted net
income as follows:
|
|
|
Three Months Ended March 31,
|
|
|
|
2014
|
|
2013
|
|
Net income attributable to Newmont stockholders
|
|
$
|
100
|
|
|
$
|
314
|
|
|
Discontinued operations loss
|
|
|
17
|
|
|
|
-
|
|
|
Restructuring and other
|
|
|
3
|
|
|
|
5
|
|
|
Impairments
|
|
|
1
|
|
|
|
4
|
|
|
Asset Sales
|
|
|
(13
|
)
|
|
|
-
|
|
|
TMAC transaction costs
|
|
|
-
|
|
|
|
30
|
|
|
Adjusted net income
|
|
$
|
108
|
|
|
$
|
353
|
|
|
Adjusted net income per share, basic
|
|
$
|
0.22
|
|
|
$
|
0.70
|
|
|
Adjusted net income per share, diluted
|
|
$
|
0.22
|
|
|
$
|
0.71
|
|
|
|
|
|
|
|
|
|
|
|
CAS per Ounce/Pound
Costs applicable to sales per ounce/pound are non-GAAP financial
measures. These measures are calculated by dividing the costs applicable
to sales of gold and copper by gold ounces or copper pounds sold,
respectively. These measures are calculated on a consistent basis for
the periods presented on both a consolidated and attributable to Newmont
basis. Attributable costs applicable to sales are based on our economic
interest in production from our mines. For operations where we hold less
than a 100 percent economic share in the production, we exclude the
share of gold or copper production attributable to the non-controlling
interest. We include attributable costs applicable to sales per
ounce/pound to provide management, investors and analysts with
information with which to compare our performance to other gold
producers. Costs applicable to sales per ounce/pound statistics are
intended to provide additional information only and do not have any
standardized meaning prescribed by GAAP and should not be considered in
isolation or as a substitute for measures of performance prepared in
accordance with GAAP. The measures are not necessarily indicative of
operating profit or cash flow from operations as determined under GAAP.
Other companies may calculate these measures differently.
Net attributable costs applicable to sales per ounce measures the
benefit of copper produced in conjunction with gold, as a credit against
the cost of producing gold. A number of other gold producers present
their costs net of the contribution from copper and other non-gold
sales. We believe that including a measure on this basis provides
management, investors and analysts with information with which to
compare our performance to other gold producers, and to better assess
the overall performance of our business. In addition, this measure
provides information to enable investors and analysts to understand the
importance of associated non-gold revenues to our cost structure.
The following tables reconcile these non-GAAP measures to the most
directly comparable GAAP measures.
|
|
|
Costs applicable to sales per ounce/pound
|
|
|
|
Gold
|
|
Copper
|
|
|
|
Three Months Ended March 31,
|
|
Three Months Ended March 31,
|
|
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs applicable to sales:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated per financial statements
|
|
$
|
960
|
|
|
$
|
951
|
|
|
$
|
123
|
|
|
$
|
106
|
|
|
Noncontrolling interests(1)
|
|
|
(112
|
)
|
|
|
(82
|
)
|
|
|
(29
|
)
|
|
|
(23
|
)
|
|
Attributable to Newmont
|
|
$
|
848
|
|
|
$
|
869
|
|
|
$
|
94
|
|
|
$
|
83
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gold/Copper sold (thousand ounces/million pounds):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
|
|
|
1,278
|
|
|
|
1,252
|
|
|
|
45
|
|
|
|
47
|
|
|
Noncontrolling interests(1)
|
|
|
(103
|
)
|
|
|
(139
|
)
|
|
|
(10
|
)
|
|
|
(12
|
)
|
|
Attributable to Newmont
|
|
|
1,175
|
|
|
|
1,113
|
|
|
|
35
|
|
|
|
35
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs applicable to sales per ounce/pound:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
|
|
$
|
751
|
|
|
$
|
760
|
|
|
$
|
2.71
|
|
|
$
|
2.27
|
|
|
Attributable to Newmont
|
|
$
|
722
|
|
|
$
|
781
|
|
|
$
|
2.63
|
|
|
$
|
2.34
|
|
|
|
|
|
|
|
|
|
|
Net attributable costs applicable to sales per ounce
|
|
|
|
Three Months Ended March 31,
|
|
|
|
|
|
|
|
|
|
2014
|
|
2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Attributable costs applicable to sales:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gold
|
|
$
|
848
|
|
|
$
|
869
|
|
|
|
|
|
|
|
|
Copper
|
|
|
94
|
|
|
|
83
|
|
|
|
|
|
|
|
|
|
|
|
942
|
|
|
|
952
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Copper revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
|
|
|
(113
|
)
|
|
|
(146
|
)
|
|
|
|
|
|
|
|
Noncontrolling interests(1)
|
|
|
22
|
|
|
|
36
|
|
|
|
|
|
|
|
|
|
|
|
(91
|
)
|
|
|
(110
|
)
|
|
|
|
|
|
|
|
Net attributable costs applicable to sales
|
|
$
|
851
|
|
|
$
|
842
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Attributable gold ounces sold (thousands)
|
|
|
1,174
|
|
|
|
1,113
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net attributable costs applicable to sales per ounce
|
|
$
|
725
|
|
|
$
|
757
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)Relates to partners' interests in Batu Hijau and
Yanacocha.
|
|
|
All-In Sustaining Costs
Newmont has worked to develop a metric that expands on GAAP measures
such as cost of goods sold and non-GAAP measures to provide visibility
into the economics of our gold mining operations related to
expenditures, operating performance and the ability to generate cash
flow from operations.
Current GAAP-measures used in the gold industry, such as cost of goods
sold, do not capture all of the expenditures incurred to discover,
develop, and sustain gold production. Therefore, we believe that All-in
sustaining costs and attributable All-in sustaining costs are non-GAAP
measures that provide additional information to management, investors,
and analysts that aid in the understanding of the economics of our
operations and performance compared to other gold producers and in the
investor’s visibility by better defining the total costs associated with
producing gold.
All-in sustaining cost (“AISC”) amounts are intended to provide
additional information only and do not have any standardized meaning
prescribed by GAAP and should not be considered in isolation or as a
substitute for measures of performance prepared in accordance with GAAP.
The measures are not necessarily indicative of operating profit or cash
flow from operations as determined under GAAP. Other companies may
calculate these measures differently as a result of differences in the
underlying accounting principles, policies applied and in accounting
frameworks such as in International Financial Reporting Standards
(“IFRS”), or by reflecting the benefit from selling non-gold metals as a
reduction to AISC. Differences may also arise related to definitional
differences of sustaining versus development capital activities based
upon each company’s internal policies.
The following disclosure provides information regarding the adjustments
made in determining the All-in sustaining costs measure:
Cost Applicable to Sales - Includes all direct and indirect costs
related to current gold production incurred to execute the current mine
plan. Costs Applicable to Sales (“CAS”) includes by-product
credits from certain metals obtained during the process of extracting
and processing the primary ore-body. CAS is accounted for on an accrual
basis and excludes Amortization and Reclamation and remediation,
which is consistent with our presentation of CAS on the Statement
of Consolidated Income. In determining All-in sustaining costs, only the
CAS associated with producing and selling an ounce of gold is included
in the measure. Therefore, the amount of gold CAS included in AISC is
derived from the CAS presented in the Company’s Statement of
Consolidated Income less the amount of CAS attributable to the
production of copper at our Phoenix, Boddington, and Batu Hijau mines.
The copper CAS at those mine sites is disclosed in Note 3 – Segments
that accompanies the Consolidated Financial Statements. The allocation
of CAS between gold and copper at the Phoenix, Boddington, and Batu
Hijau mines is based upon the relative sales percentage of copper and
gold sold during the period.
Remediation Costs - Includes accretion expense related to asset
retirement obligations (“ARO”) and the amortization of the related Asset
Retirement Cost (“ARC”) for the Company’s operating properties recorded
as an ARC asset. Accretion related to ARO and the amortization of the
ARC assets for reclamation and remediation do not reflect annual cash
outflows but are calculated in accordance with GAAP. The accretion and
amortization reflect the periodic costs of reclamation and remediation
associated with current gold production and are therefore included in
the measure. The allocation of these costs to gold and copper is
determined using the same allocation used in the allocation of CAS
between gold and copper at the Phoenix, Boddington, and Batu Hijau mines.
Advanced Projects and Exploration - Includes incurred expenses
related to projects that are designed to increase or enhance current
gold production and gold exploration. We note that as current resources
are depleted, exploration and advance projects are necessary for us to
replace the depleting reserves or enhance the recovery and processing of
the current reserves. As this relates to sustaining our gold production,
and is considered a continuing cost of a mining company, these costs are
included in the AISC measure. These costs are derived from the Advanced
projects, research and development and Exploration amounts
presented in the Company’s Statement of Consolidated Income less the
amount attributable to the production of copper at our Phoenix,
Boddington, and Batu Hijau mines. The allocation of these costs to gold
and copper is determined using the same allocation used in the
allocation of CAS between gold and copper at the Phoenix, Boddington,
and Batu Hijau mines.
General and Administrative - Includes cost related to
administrative tasks not directly related to current gold production,
but rather related to support our corporate structure and fulfilling our
obligations to operate as a public company. Including these expenses in
the AISC metric provides visibility of the impact that general and
administrative activities have on current operations and profitability
on a per ounce basis.
Other Expense, net - Includes costs related to regional
administration and community development to support current gold
production. We exclude certain exceptional or unusual expenses from Other
expense, net, such as restructuring, as these are not indicative to
sustaining our current gold operations. Furthermore, this adjustment to Other
expense, net is also consistent with the nature of the adjustments
made to Net income (loss) as disclosed in the Company’s non-GAAP
financial measure Adjusted net income (loss). The allocation of these
costs to gold and copper is determined using the same allocation used in
the allocation of CAS between gold and copper at the Phoenix,
Boddington, and Batu Hijau mines.
Treatment and Refining Costs - Includes costs paid to smelters
for treatment and refining of our concentrates to produce the salable
precious metal. These costs are presented net as a reduction of Sales.
Sustaining Capital - We determined sustaining capital as those
capital expenditures that are necessary to maintain current gold
production and execute the current mine plan. Capital expenditures to
develop new operations, or related to projects at existing operations
where these projects will enhance gold production or reserves, are
considered development. We determined the breakout of sustaining and
development capital costs based on a systematic review of our project
portfolio in light of the nature of each project. Sustaining capital
costs are relevant to the AISC metric as these are needed to maintain
the Company’s current gold operations and provide improved transparency
related to our ability to finance these expenditures from current
operations. The allocation of these costs to gold and copper is
determined using the same allocation used in the allocation of CAS
between gold and copper at the Phoenix, Boddington, and Batu Hijau mines.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31, 2014
|
|
Costs
Applicable
to
Sales(1)(2)(3)
|
|
Remediation
Costs(4)
|
|
Advanced
Projects and
Exploration
|
|
General and
Administrative
|
|
Other
Expense,
Net(5)
|
|
Treatment
and
Refining
Costs
|
|
Sustaining
Capital(6)
|
|
All-In
Sustaining
Costs
|
|
Ounces
(000)/
Pounds
(millions)
Sold(7)
|
|
All-In
Sustaining
Costs
per
oz/lb
|
|
GOLD
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Carlin
|
|
$
|
192
|
|
$
|
1
|
|
$
|
4
|
|
$
|
-
|
|
$
|
1
|
|
$
|
-
|
|
$
|
20
|
|
$
|
218
|
|
228
|
|
$
|
956
|
|
Phoenix
|
|
|
34
|
|
|
-
|
|
|
1
|
|
|
-
|
|
|
1
|
|
|
2
|
|
|
7
|
|
|
45
|
|
55
|
|
|
818
|
|
Twin Creeks
|
|
|
55
|
|
|
1
|
|
|
1
|
|
|
-
|
|
|
1
|
|
|
-
|
|
|
32
|
|
|
90
|
|
103
|
|
|
874
|
|
La Herradura
|
|
|
16
|
|
|
1
|
|
|
4
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
4
|
|
|
25
|
|
23
|
|
|
1,087
|
|
Other North America
|
|
|
-
|
|
|
-
|
|
|
6
|
|
|
-
|
|
|
3
|
|
|
-
|
|
|
5
|
|
|
14
|
|
-
|
|
|
-
|
|
North America
|
|
|
297
|
|
|
3
|
|
|
16
|
|
|
-
|
|
|
6
|
|
|
2
|
|
|
68
|
|
|
392
|
|
409
|
|
|
958
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Yanacocha
|
|
|
221
|
|
|
30
|
|
|
7
|
|
|
-
|
|
|
9
|
|
|
-
|
|
|
14
|
|
|
281
|
|
206
|
|
|
1,364
|
|
Other South America
|
|
|
-
|
|
|
-
|
|
|
8
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
8
|
|
-
|
|
|
-
|
|
South America
|
|
|
221
|
|
|
30
|
|
|
15
|
|
|
-
|
|
|
9
|
|
|
-
|
|
|
14
|
|
|
289
|
|
206
|
|
|
1,403
|
|
Attributable to Newmont
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
150
|
|
106
|
|
|
1,415
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Boddington
|
|
|
142
|
|
|
3
|
|
|
-
|
|
|
-
|
|
|
1
|
|
|
1
|
|
|
15
|
|
|
162
|
|
167
|
|
|
970
|
|
Tanami
|
|
|
55
|
|
|
1
|
|
|
1
|
|
|
-
|
|
|
1
|
|
|
-
|
|
|
20
|
|
|
78
|
|
81
|
|
|
963
|
|
Jundee
|
|
|
42
|
|
|
3
|
|
|
1
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
7
|
|
|
53
|
|
63
|
|
|
841
|
|
Waihi
|
|
|
19
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
1
|
|
|
20
|
|
25
|
|
|
800
|
|
Kalgoorlie
|
|
|
77
|
|
|
1
|
|
|
1
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
2
|
|
|
81
|
|
92
|
|
|
880
|
|
Other Australia/New Zealand
|
|
|
-
|
|
|
-
|
|
|
1
|
|
|
-
|
|
|
8
|
|
|
-
|
|
|
-
|
|
|
9
|
|
-
|
|
|
-
|
|
Australia/New Zealand
|
|
|
335
|
|
|
8
|
|
|
4
|
|
|
-
|
|
|
10
|
|
|
1
|
|
|
45
|
|
|
403
|
|
428
|
|
|
942
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Batu Hijau
|
|
|
8
|
|
|
1
|
|
|
-
|
|
|
-
|
|
|
1
|
|
|
1
|
|
|
2
|
|
|
13
|
|
6
|
|
|
2,167
|
|
Indonesia
|
|
|
8
|
|
|
1
|
|
|
-
|
|
|
-
|
|
|
1
|
|
|
1
|
|
|
2
|
|
|
13
|
|
6
|
|
|
2,167
|
|
Attributable to Newmont
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
7
|
|
3
|
|
|
2,167
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ahafo
|
|
|
61
|
|
|
1
|
|
|
9
|
|
|
-
|
|
|
3
|
|
|
-
|
|
|
21
|
|
|
95
|
|
110
|
|
|
864
|
|
Akyem
|
|
|
38
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
3
|
|
|
-
|
|
|
2
|
|
|
43
|
|
119
|
|
|
361
|
|
Other Africa
|
|
|
-
|
|
|
-
|
|
|
2
|
|
|
-
|
|
|
1
|
|
|
-
|
|
|
-
|
|
|
3
|
|
-
|
|
|
-
|
|
Africa
|
|
|
99
|
|
|
1
|
|
|
11
|
|
|
-
|
|
|
7
|
|
|
-
|
|
|
23
|
|
|
141
|
|
229
|
|
|
616
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate and Other
|
|
|
-
|
|
|
-
|
|
|
29
|
|
|
45
|
|
|
6
|
|
|
-
|
|
|
4
|
|
|
84
|
|
-
|
|
|
-
|
|
Total Gold
|
|
|
960
|
|
|
43
|
|
|
75
|
|
|
45
|
|
|
39
|
|
|
4
|
|
|
156
|
|
|
1,322
|
|
1,278
|
|
|
1,034
|
|
Attributable to Newmont
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
1,177
|
|
1,175
|
|
$
|
1,002
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COPPER
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Phoenix
|
|
|
26
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
1
|
|
|
1
|
|
$
|
28
|
|
11
|
|
$
|
2.55
|
|
Boddington
|
|
|
40
|
|
|
1
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
5
|
|
|
3
|
|
|
49
|
|
15
|
|
|
3.27
|
|
Batu Hijau
|
|
|
57
|
|
|
5
|
|
|
1
|
|
|
-
|
|
|
7
|
|
|
5
|
|
|
13
|
|
|
88
|
|
19
|
|
|
4.63
|
|
Total Copper
|
|
|
123
|
|
|
6
|
|
|
1
|
|
|
-
|
|
|
7
|
|
|
11
|
|
|
17
|
|
|
165
|
|
45
|
|
|
3.67
|
|
Attributable to Newmont
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
120
|
|
35
|
|
$
|
3.43
|
|
Consolidated
|
|
$
|
1,083
|
|
$
|
49
|
|
$
|
76
|
|
$
|
45
|
|
$
|
46
|
|
$
|
15
|
|
$
|
173
|
|
$
|
1,487
|
|
|
|
|
|
|
(1)
|
|
|
Excludes Amortization and Reclamation and remediation.
|
|
(2)
|
|
|
Includes by-product credits of $23.
|
|
(3)
|
|
|
Includes planned stockpile and leach pad inventory adjustments of
$20 at Carlin, $2 at Twin Creeks, $35 at Yanacocha, $25 at
Boddington, and $29 at Batu Hijau.
|
|
(4)
|
|
|
Remediation costs include operating accretion of $18 and
amortization of asset retirement costs of $31.
|
|
(5)
|
|
|
Other expense, net is adjusted for restructuring of $7.
|
|
(6)
|
|
|
Excludes development capital expenditures, capitalized interest, and
the decrease in accrued capital of $62. The following are major
development projects; Turf Vent Shaft, Conga, and Merian for 2014.
|
|
(7)
|
|
|
Excludes attributable gold sales from La Zanja and Duketon.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31, 2013
|
|
Costs
Applicable
to
Sales(1)(2)(3)
|
|
Remediation
Costs(4)
|
|
Advanced
Projects and
Exploration
|
|
General and
Administrative
|
|
Other
Expense,
Net(5)
|
|
Treatment
and
Refining
Costs
|
|
Sustaining
Capital(6)
|
|
All-In
Sustaining
Costs
|
|
Ounces
(000)/
Pounds
(millions)
Sold(7)
|
|
All-In
Sustaining
Costs
per
oz/lb
|
|
GOLD
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Carlin
|
|
$
|
179
|
|
$
|
1
|
|
$
|
11
|
|
$
|
-
|
|
$
|
2
|
|
$
|
-
|
|
$
|
34
|
|
$
|
227
|
|
222
|
|
$
|
1,023
|
|
Phoenix
|
|
|
41
|
|
|
-
|
|
|
3
|
|
|
-
|
|
|
1
|
|
|
2
|
|
|
1
|
|
|
48
|
|
34
|
|
|
1,412
|
|
Twin Creeks
|
|
|
52
|
|
|
1
|
|
|
3
|
|
|
-
|
|
|
1
|
|
|
-
|
|
|
19
|
|
|
76
|
|
96
|
|
|
792
|
|
La Herradura
|
|
|
40
|
|
|
-
|
|
|
6
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
9
|
|
|
55
|
|
56
|
|
|
982
|
|
Other North America
|
|
|
-
|
|
|
-
|
|
|
8
|
|
|
-
|
|
|
2
|
|
|
-
|
|
|
3
|
|
|
13
|
|
-
|
|
|
-
|
|
North America
|
|
|
312
|
|
|
2
|
|
|
31
|
|
|
-
|
|
|
6
|
|
|
2
|
|
|
66
|
|
|
419
|
|
408
|
|
|
1,027
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Yanacocha
|
|
|
160
|
|
|
23
|
|
|
13
|
|
|
-
|
|
|
10
|
|
|
-
|
|
|
37
|
|
|
243
|
|
278
|
|
|
874
|
|
Other South America
|
|
|
-
|
|
|
-
|
|
|
3
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
3
|
|
-
|
|
|
-
|
|
South America
|
|
|
160
|
|
|
23
|
|
|
16
|
|
|
-
|
|
|
10
|
|
|
-
|
|
|
37
|
|
|
246
|
|
278
|
|
|
885
|
|
Attributable to Newmont
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
127
|
|
143
|
|
|
888
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Boddington
|
|
|
174
|
|
|
2
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
1
|
|
|
22
|
|
|
199
|
|
200
|
|
|
995
|
|
Tanami
|
|
|
75
|
|
|
1
|
|
|
2
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
23
|
|
|
101
|
|
60
|
|
|
1,683
|
|
Jundee
|
|
|
54
|
|
|
4
|
|
|
4
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
12
|
|
|
74
|
|
76
|
|
|
974
|
|
Waihi
|
|
|
28
|
|
|
1
|
|
|
1
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
2
|
|
|
32
|
|
30
|
|
|
1,067
|
|
Kalgoorlie
|
|
|
75
|
|
|
2
|
|
|
1
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
2
|
|
|
80
|
|
74
|
|
|
1,081
|
|
Other Australia/New Zealand
|
|
|
-
|
|
|
-
|
|
|
4
|
|
|
-
|
|
|
9
|
|
|
-
|
|
|
1
|
|
|
14
|
|
-
|
|
|
-
|
|
Australia/New Zealand
|
|
|
406
|
|
|
10
|
|
|
12
|
|
|
-
|
|
|
9
|
|
|
1
|
|
|
62
|
|
|
500
|
|
440
|
|
|
1,136
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Batu Hijau
|
|
|
7
|
|
|
-
|
|
|
1
|
|
|
-
|
|
|
2
|
|
|
1
|
|
|
3
|
|
|
14
|
|
7
|
|
|
2,000
|
|
Indonesia
|
|
|
7
|
|
|
-
|
|
|
1
|
|
|
-
|
|
|
2
|
|
|
1
|
|
|
3
|
|
|
14
|
|
7
|
|
|
2,000
|
|
Attributable to Newmont
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
7
|
|
3
|
|
|
2,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ahafo
|
|
|
66
|
|
|
1
|
|
|
13
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
42
|
|
|
122
|
|
119
|
|
|
1,025
|
|
Akyem
|
|
|
-
|
|
|
-
|
|
|
3
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
3
|
|
-
|
|
|
-
|
|
Other Africa
|
|
|
-
|
|
|
-
|
|
|
2
|
|
|
-
|
|
|
7
|
|
|
-
|
|
|
-
|
|
|
9
|
|
-
|
|
|
-
|
|
Africa
|
|
|
66
|
|
|
1
|
|
|
18
|
|
|
-
|
|
|
7
|
|
|
-
|
|
|
42
|
|
|
134
|
|
119
|
|
|
1,126
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate and Other
|
|
|
-
|
|
|
-
|
|
|
27
|
|
|
56
|
|
|
6
|
|
|
-
|
|
|
2
|
|
|
91
|
|
-
|
|
|
-
|
|
Total Gold
|
|
|
951
|
|
|
36
|
|
|
105
|
|
|
56
|
|
|
40
|
|
|
4
|
|
|
212
|
|
|
1,404
|
|
1,252
|
|
|
1,121
|
|
Attributable to Newmont
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
1,278
|
|
1,113
|
|
$
|
1,148
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COPPER
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Phoenix
|
|
|
11
|
|
|
-
|
|
|
1
|
|
|
-
|
|
|
1
|
|
|
1
|
|
|
1
|
|
$
|
15
|
|
4
|
|
$
|
3.75
|
|
Boddington
|
|
|
48
|
|
|
1
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
5
|
|
|
5
|
|
|
59
|
|
20
|
|
|
2.95
|
|
Batu Hijau
|
|
|
47
|
|
|
2
|
|
|
5
|
|
|
-
|
|
|
5
|
|
|
6
|
|
|
20
|
|
|
85
|
|
23
|
|
|
3.70
|
|
Total Copper
|
|
|
106
|
|
|
3
|
|
|
6
|
|
|
-
|
|
|
6
|
|
|
12
|
|
|
26
|
|
|
159
|
|
47
|
|
|
3.38
|
|
Attributable to Newmont
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
115
|
|
35
|
|
$
|
3.29
|
|
Consolidated
|
|
$
|
1,057
|
|
$
|
39
|
|
$
|
111
|
|
$
|
56
|
|
$
|
46
|
|
$
|
16
|
|
$
|
238
|
|
$
|
1,563
|
|
|
|
|
|
|
(1)
|
|
|
Excludes Amortization and Reclamation and remediation.
|
|
(2)
|
|
|
Includes by-product credits of $30.
|
|
(3)
|
|
|
Includes stockpile and leach pad inventory adjustments of $4 at
Yanacocha, $1 at Tanami, and $2 at Waihi
|
|
(4)
|
|
|
Remediation costs include operating accretion of $15 and
amortization of asset retirement costs of $24.
|
|
(5)
|
|
|
Other expense, net is adjusted for restructuring of $9 and TMAC
transaction costs of $45.
|
|
(6)
|
|
|
Excludes development capital expenditures, capitalized interest, and
the decrease in accrued capital of $272. The following are major
development projects; Phoenix Copper Leach, Turf Vent Shaft, Vista
Vein, La Herradura Mill, Yanacocha Bio Leach, Conga, Merian, Ahafo
North, Ahafo Mill Expansion, Subika Underground, and Akyem for 2013.
|
|
(7)
|
|
|
Excludes attributable gold sales from La Zanja and Duketon.
|
|
|
|
|
|
Conference Call Information
A conference call will be held on Friday, April 25, 2014 at 10:00
a.m. Eastern Time (8:00 a.m. Mountain Time); it will also be carried
on the Company's website.
The first quarter 2014 results and related financial and statistical
information will be available after the market close on Thursday, April
24, 2014 on the “Investor Relations” section of the Company’s web site, www.newmont.com.
Additionally, the conference call will be archived for a limited time on
the Company’s website.
Cautionary Statement Regarding Forward Looking Statements, Including
Outlook:
This release contains “forward-looking statements” within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section 21E
of the Securities Exchange Act of 1934, as amended, which are intended
to be covered by the safe harbor created by such sections and other
applicable laws. Such forward-looking statements may include, without
limitation: (i) estimates of future production and sales; (ii) estimates
of future costs applicable to sales and All-in sustaining costs; (iii)
estimates of future consolidated and attributable capital expenditures;
(iv) plans and expectations to reduce costs and expenditures; (v)
expectations regarding the development, growth and exploration potential
of the Company’s projects; and (vi) expectations regarding the timing
and/or likelihood of closing the term loan. Estimates or expectations of
future events or results are based upon certain assumptions, which may
prove to be incorrect. Such assumptions, include, but are not limited
to: (i) there being no significant change to current geotechnical,
metallurgical, hydrological and other physical conditions; (ii)
permitting, development, operations and expansion of the Company’s
projects being consistent with current expectations and mine plans,
including without limitation receipt of export approvals; (iii)
political developments in any jurisdiction in which the Company operates
being consistent with its current expectations; (iv) certain exchange
rate assumptions for the Australian dollar to the U.S. dollar, as well
as other the exchange rates being approximately consistent with current
levels; (v) certain price assumptions for gold, copper and oil; (vi)
prices for key supplies being approximately consistent with current
levels; and (vii) the accuracy of our current mineral reserve and
mineral resource estimates. Where the Company expresses or implies an
expectation or belief as to future events or results, such expectation
or belief is expressed in good faith and believed to have a reasonable
basis. However, such statements are subject to risks, uncertainties and
other factors, which could cause actual results to differ materially
from future results expressed, projected or implied by the
“forward-looking statements”. Such risks include, but are not limited
to, gold and other metals price volatility, currency fluctuations,
increased production costs and variances in ore grade or recovery rates
from those assumed in mining plans, political and operational risks,
community relations, conflict resolution and outcome of projects or
oppositions and governmental regulation and judicial outcomes. For a
more detailed discussion of such risks and other factors, see the
Company’s 2013 Annual Report on Form 10-K, filed on February 21, 2014,
with the Securities and Exchange Commission, as well as the Company’s
other SEC filings. The Company does not undertake any obligation to
release publicly revisions to any “forward-looking statement,”
including, without limitation, outlook, to reflect events or
circumstances after the date of this news release, or to reflect the
occurrence of unanticipated events, except as may be required under
applicable securities laws. Investors should not assume that any lack of
update to a previously issued “forward-looking statement” constitutes a
reaffirmation of that statement. Continued reliance on “forward-looking
statements” is at investors' own risk.
Copyright Business Wire 2014