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Newmont Announces Third Quarter 2022 Results

NEM

Newmont remains on track to achieve full-year guidance with stable third quarter production from diverse, global portfolio; focused on delivering long-term value to shareholders

Newmont Corporation (NYSE: NEM, TSX: NGT) (Newmont or the Company) today announced third quarter 2022 results.

THIRD QUARTER 2022 RESULTS

  • Produced 1.49 million attributable ounces of gold and 299 thousand attributable gold equivalent ounces (GEO) from co-products; due to timing of shipments at Peñasquito, 38 thousand attributable gold ounces and 20 thousand GEOs of third quarter production will be sold in the fourth quarter
  • Reported gold Costs Applicable to Sales (CAS)* of $968 per ounce and All-In Sustaining Costs (AISC)* of $1,271 per ounce
  • On track to achieve full-year guidance of 6.0 million ounces of attributable gold production with Gold CAS of $900 per ounce and Gold AISC of $1,150 per ounce, as well as 1.3 million gold equivalent ounce production from copper, silver, lead and zinc with Co-Product CAS of $750 per GEO and Co-Product AISC of $1,050 per GEO**
  • Generated $466 million of cash from continuing operations and reported $(63) million of Free Cash Flow*, impacted by one-time working capital payments totaling $210 million and the timing of concentrate shipments at Peñasquito with an approximate sales value of $80 million
  • Reported Adjusted Net Income (ANI)* of $0.27 per share and Adjusted EBITDA* of $850, impacted by lower metal prices and timing of sales
  • Declared third quarter dividend of $0.55 per share, calibrated at an $1,800 per ounce gold price***
  • $1 billion share repurchase program to be used opportunistically, with $475 million remaining***
  • Ended the quarter with $3.1 billion of consolidated cash, $653 million of time deposits with a maturity of less than one year, and $6.7 billion of liquidity; reported net debt to adjusted EBITDA ratio of 0.5x*
  • Announced the delay and review of the Yanacocha Sulfides project and appointment of Dean Gehring to Chief Development Officer - Peru to lead operations and strategy in the region
  • Advancing profitable near-term projects, including Tanami Expansion 2, Ahafo North, Pamour and Cerro Negro District Expansion 1
  • Announced and closed the sale of Newmont's 18.75% stake in the MARA project joint venture to Glencore International AG for $125 million, with a minimum $30 million deferred payment upon successfully reaching commercial production
  • Published inaugural Taxes and Royalties Contribution Report, providing an overview of our tax strategy and economic contributions as part of our commitment to shared value creation

"Newmont delivered solid third quarter production of 1.5 million gold ounces as we build momentum for strong production in the fourth quarter. Newmont remains well-positioned to respond to the challenging market environment that our industry faces today. We continue to leverage our leadership and collective experience, as well as the strength of our global portfolio with the size and scale to build a resilient and sustainable future. Supported by our clear long-term strategy, we continue to focus on safely delivering production through our responsibly managed portfolio of world-class assets, while investing in our future and creating value for all of our stakeholders."

- Tom Palmer, Newmont President and Chief Executive Officer

*Non-GAAP metrics; see reconciliations at the end of this release.

**See discussion of outlook and cautionary statement at end of release regarding forward-looking statements.

***See cautionary statement at the end of this release, including with respect to future dividends and share buybacks.

THIRD QUARTER 2022 FINANCIAL AND PRODUCTION SUMMARY

Q3'22

Q2'22

Q1'22

Q3'21

Average realized gold price ($ per ounce)

$

1,691

$

1,836

$

1,892

$

1,778

Attributable gold production (million ounces)

1.49

1.50

1.34

1.45

Gold costs applicable to sales (CAS) ($ per ounce)

$

968

$

932

$

890

$

830

Gold all-in sustaining costs (AISC) ($ per ounce)

$

1,271

$

1,199

$

1,156

$

1,120

GAAP net income from continuing operations ($ millions)

$

218

$

379

$

432

$

(8

)

Adjusted net income ($ millions)

$

212

$

362

$

546

$

483

Adjusted EBITDA ($ millions)

$

850

$

1,149

$

1,390

$

1,316

Cash flow from continuing operations ($ millions)

$

466

$

1,033

$

689

$

1,133

Capital expenditures ($ millions)

$

529

$

519

$

437

$

398

Free cash flow ($ millions)

$

(63

)

$

514

$

252

$

735

Attributable gold production1 increased 3 percent to 1,487 thousand ounces from the prior year quarter primarily due to higher ore grade milled at Ahafo, Akyem and Boddington. In addition, the current quarter benefited from the 100% ownership of Yanacocha compared to the prior year. These increases were partially offset by lower production volumes from Nevada Gold Mines. Attributable gold sales versus production was impacted by the timing of concentrate shipments at Peñasquito, partially due to inclement weather and earthquakes which impacted shipping logistics. All finished goods inventory at September 30th will be sold in the fourth quarter.

Gold CAS totaled $1.3 billion for the quarter. Gold CAS per ounce2 increased 17 percent to $968 per ounce from the prior year quarter primarily due to lower gold sales volumes and higher direct operating costs as a result of inflationary pressures, driven by higher labor costs and an increase in commodity input costs, including higher fuel and energy costs.

Gold AISC per ounce3 increased 13 percent to $1,271 per ounce from the prior year quarter primarily due to higher CAS per gold ounce.

Attributable gold equivalent ounce (GEO) production from other metals decreased 5 percent to 299 thousand ounces primarily due to lower ore grade milled at Peñasquito. Attributable GEO sales versus production was impacted by the timing of concentrate shipments at Peñasquito, partially due to inclement weather and earthquakes which impacted shipping logistics. All finished goods inventory at September 30th will be sold in the fourth quarter.

CAS from other metals totaled $200 million for the quarter. CAS per GEO2 increased 12 percent to $712 per ounce from the prior year quarter primarily due to lower other metal sales at Peñasquito, as well as higher direct operating costs as a result of inflationary pressures, driven by higher labor costs and an increase in commodity input costs, including higher fuel and energy costs.

AISC per GEO3 increased 13 percent to $999 per ounce primarily due to higher CAS per GEO and higher sustaining capital spend.

Average realized price for gold was $1,691, a decrease of $87 per ounce over the prior year quarter. Average realized gold price includes $1,716 per ounce of gross price received, an unfavorable impact of $17 per ounce mark-to-market on provisionally-priced sales and reductions of $8 per ounce for treatment and refining charges.

Revenue decreased 9 percent from the prior year quarter to $2.6 billion primarily due to lower average realized metal prices, excluding zinc, and lower sales volumes.

Net income from continuing operations attributable to Newmont stockholders was $218 million or $0.28 per diluted share, an increase of $226 million from the prior year quarter primarily due to the loss recognized on the sale of the Conga mill assets in the prior year, lower income tax expense and a gain on the change in fair value of marketable and other equity securities compared to a loss in the prior year. These increases were partially offset by lower realized metal prices, lower sales volumes and higher CAS predominately resulting from the impacts of inflation compared to the prior year quarter.

Adjusted net income4was $212 million or $0.27 per diluted share,compared to $483 million or $0.60 per diluted share in the prior year quarter.

Adjusted EBITDA5decreased 35 percent to $0.9 billion for the quarter, compared to $1.3 billion for the prior year quarter.

Capital expenditures6increased 33 percent from the prior year quarter to $529 million primarily due to higher development capital spend. Development capital expenditures in 2022 primarily relate to Tanami Expansion 2, Yanacocha Sulfides, Ahafo North, Pamour and Cerro Negro District Expansion 1.

Consolidated operating cash flow from continuing operations decreased 59 percent from the prior year quarter to $466 million primarily due to an increase in operating cash expenditures resulting from the impacts of inflation on input costs, a $95 million payment related to the Peñasquito profit-sharing agreement related to 2021 results, an $83 million payment related to the Ghanaian employment model change and a $34 million payment related to our strategic alliance with Caterpillar Inc., as well as lower sales revenue and an increase in payments for reclamation and remediation obligations. Free Cash Flow7decreased to $(63) million from $735 million in the prior year quarter primarily due to lower operating cash flow and higher development capital expenditures.

Balance sheet and liquidity ended the quarter with $3.1 billion of consolidated cash and $653 million of time deposits with a maturity of less than one year; $6.7 billion of total liquidity and reported net debt to adjusted EBITDA of 0.5x8.

Nevada Gold Mines (NGM) attributable gold production was 267 thousand ounces, with CAS of $1,104 per ounce and AISC of $1,358 per ounce for the third quarter. NGM EBITDA9 was $158 million.

Pueblo Viejo (PV) attributable gold production was 81 thousand ounces for the quarter. Cash distributions received for the Company's equity method investment in Pueblo Viejo totaled $40 million in the third quarter.

THIRD QUARTER 2022 EARNINGS DRIVERS

Compared to the second quarter of 2022, lower realized metal prices, including unfavorable mark-to-market adjustments on provisionally-priced sales, impacted earnings by approximately $200 million. In addition, lower sales volumes impacted earnings by approximately $130 million. Third quarter sales volumes were 38 thousand attributable gold ounces and 20 thousand GEOs lower than production at Peñasquito due to the timing of concentrate shipments which will be sold in the fourth quarter. These impacts were partially offset by the $70 million incremental expense recognized in the second quarter for the Peñasquito profit-sharing agreement related to 2021 results.

COVID UPDATE

Newmont continues to maintain wide-ranging protective measures for its workforce and neighboring communities, including screening, physical distancing, deep cleaning and avoiding exposure for at-risk individuals. The Company incurred incremental Covid specific costs of $6 million during the quarter for activities such as additional health and safety procedures, increased transportation. The majority of the additional incremental Covid specific costs have not been adjusted from our non-GAAP metrics.

PROJECTS UPDATE10

Newmont’s project pipeline supports stable production with improving margins and mine life. Newmont's 2022 and longer-term outlook includes current development capital costs and production related to Tanami Expansion 2, Ahafo North, Yanacocha Sulfides, Pamour and Cerro Negro District Expansion 1. Additional projects not listed below represent incremental improvements to the Company's outlook.

  • Tanami Expansion 2 (Australia) secures Tanami’s future as a long-life, low-cost producer to extend mine life beyond 2040 through the addition of a 1,460 meter hoisting shaft and supporting infrastructure to process 3.3 million tonnes per year and provide a platform for future growth. The expansion is expected to increase average annual gold production by approximately 150,000 to 200,000 ounces per year for the first five years and reduce operating costs by approximately 10 percent. Development costs (excluding capitalized interest) since approval were $451 million, of which $167 million related to the nine months ended September 30, 2022. Total capital costs are expected to be approximately 25% above the prior estimate, incorporating the significant impacts from Covid-related restrictions and protocols and the current market conditions for labor and materials. Commercial production for the project is expected to be in early 2025. Formal updates to capital estimates and estimated project completion will be provided later in the year.
  • Ahafo North (Africa) expands our existing footprint in Ghana with four open pit mines and a stand-alone mill located approximately 30 kilometers from the Company’s Ahafo South operations. The project is expected to add between 275,000 and 325,000 ounces per year for the first five full years of production. Ahafo North is the best unmined gold deposit in West Africa with approximately 3.5 million ounces of Reserves and more than 1 million ounces of Measured, Indicated and Inferred Resources and significant upside potential to extend beyond Ahafo North’s current 13-year mine life. Development costs (excluding capitalized interest) since approval were $171 million, of which $104 million related to the nine months ended September 30, 2022. Total capital costs are expected to be approximately 15% above the prior estimate, incorporating the cost associated with delayed land access. Commercial production for the project is expected to be in mid-2025. Formal updates to capital estimates and estimated project completion will be provided once full land access is granted, anticipated in early 2023.
  • Yanacocha Sulfides11 (South America) will develop the first phase of sulfide deposits and an integrated processing circuit, including an autoclave to produce 45% gold, 45% copper and 10% silver. The project economics, timing and optionality are currently being evaluated by management, and remain subject to an investment decision. The first phase focuses on developing the Yanacocha Verde and Chaquicocha deposits to extend Yanacocha’s operations beyond 2040 with second and third phases having the potential to extend life for multiple decades.
  • Pamour (North America) extends the life of Porcupine and maintains production beginning in 2024. The project will optimize mill capacity, adding volume and supporting high grade ore from Borden and Hoyle Pond, while supporting further exploration in a highly prospective and proven mining district. An investment decision is expected in 2023 with estimated capital costs between $350 and $450 million.
  • Cerro Negro District Expansion 1 (South America) includes the simultaneous development of the Marianas and Eastern districts to extend the mine life of Cerro Negro beyond 2030. The project is expected to improve production to above 350,000 ounces beginning in 2024. Development capital costs for the project are estimated to be approximately $300 million. This project provides a platform for further exploration and future growth through additional expansions

1 Attributable gold production for the third quarter 2022 includes 81 thousand ounces from the Company’s equity method investment in Pueblo Viejo (40%).

2 Non-GAAP measure. See end of this releasefor reconciliation to Costs applicable to sales.

3 Non-GAAP measure. See end of this release for reconciliation to Costs applicable to sales.

4 Non-GAAP measure. See end of this release for reconciliation to Net income (loss) attributable to Newmont stockholders.

5 Non-GAAP measure. See end of this release for reconciliation to Net income (loss) attributable to Newmont stockholders.

6 Capital expenditures refers to Additions to property plant and mine development from the Condensed Consolidated Statements of Cash Flows.

7 Non-GAAP measure. See end of this release for reconciliation to Net cash provided by operating activities.

8 Non-GAAP measure. See end of this release for reconciliation.

9 Non-GAAP measure. See page 14 for reconciliation.

10 Project estimates remain subject to change based upon uncertainties, including future market conditions, continued impacts from the COVID-19 pandemic, the Russian invasion of Ukraine, inflation, commodities and raw materials prices, supply chain disruptions, labor markets, engineering and mine plan assumptions, future funding decisions, consideration of strategic capital allocation and other factors, which may impact estimated capital expenditures, AISC and timing of projects. See end of this release for cautionary statement regarding forward-looking statements.

11 As a response to the current market conditions, record inflation rates, the rising prices for commodities and raw materials, prolonged supply chain disruptions, competitive labor markets and consideration of capital allocation, in the third quarter of 2022 the Company announced the delay of the full-funds investment decision for the Yanacocha Sulfides project in Peru. While the Company has extended the timeline of the full-funds decision, assessment of the project remains a priority in Peru as the Company continues to advance engineering and long-term procurement activities. The delay of the Yanacocha Sulfides project is intended to focus funds on current operations and other capital commitments while management assesses execution and project timeline, plan and options, up to and including transitioning Yanacocha operations into full closure.

OUTLOOK

On July 25, 2022, Newmont provided revised 2022 outlook due to impacts on gold production estimates in the first half of the year, as well as the continued impact from inflationary pressures on costs. Today, the Company is reaffirming its latest 2022 outlook as detailed below.

Further updates about Newmont's long-term guidance will be provided in December 2022. Please see the cautionary statement in the end notes for additional information. For further discussion, investors are encouraged to attend Newmont’s Third Quarter 2022 Earnings Conference Call.

Newmont 2022 Outlook (+/- 5%) a

2022E

Consolidated Gold Production (Moz)

5.9

Consolidated Co-Product GEO Production (Moz) b

1.3

Consolidated Total GEO Production (Moz) b

7.2

Attributable Gold Production (Moz) c

6.0

Attributable Co-Product GEO Production (Moz) b

1.3

Attributable Total GEO Production (Moz) b,c

7.3

Gold CAS ($/oz)

900

Co-Product GEO CAS ($/oz) b

750

Total GEO CAS ($/oz) b

875

Gold AISC($/oz) d

1,150

Co-Product GEO AISC ($/oz) b,d

1,050

Total GEO AISC ($/oz) b,d

1,130

Consolidated Sustaining Capital Expenditures ($M)

1,000

Consolidated Development Capital Expenditures ($M)

1,100

Total Consolidated Capital ($M)

2,100

Attributable Sustaining Capital Expenditures ($M)

925

Attributable Development Capital Expenditures ($M) e

1,100

Total Attributable Capital ($M)

2,025

General & Administrative ($M)

270

Interest Expense ($M)

200

Depreciation and Amortization ($M)

2,300

Exploration & Advanced Projects ($M)

450

Adjusted Tax Rate f,g

30% - 34%

a 2022 outlook projections are considered forward-looking statements and represent management’s good faith estimates or expectations of future production results as of July 25, 2022. Outlook is based upon certain assumptions, including, but not limited to, metal prices, oil prices, certain exchange rates and other assumptions. For example, updated 2022 Outlook includes actual results through June 30, 2022 and assumes $1,800/oz Au, $4.10/lb Cu, $21.00/oz Ag, $1.60/lb Zn, $0.95/lb Pb, $0.74 USD/AUD exchange rate, $0.80 USD/CAD exchange rate and $110/barrel WTI for the second half of 2022. Production, CAS, AISC and capital estimates exclude projects that have not yet been approved, except for Yanacocha Sulfides, Pamour and Cerro Negro District Expansion 1 which are included in Outlook. The potential impact on inventory valuation as a result of lower prices, input costs, and project decisions are not included as part of this Outlook. Assumptions used for purposes of Outlook may prove to be incorrect and actual results may differ from those anticipated, including variation beyond a +/-5% range. Outlook cannot be guaranteed. As such, investors are cautioned not to place undue reliance upon Outlook and forward-looking statements as there can be no assurance that the plans, assumptions or expectations upon which they are placed will occur. Amounts may not recalculate to totals due to rounding. See cautionary at the end of this release.

b Gold equivalent ounces (GEO) is calculated as pounds or ounces produced multiplied by the ratio of the other metal’s price to the gold price, using Gold ($1,200/oz.), Copper ($3.25/lb.), Silver ($23.00/oz.), Lead ($0.95/lb.), and Zinc ($1.15/lb.) pricing.

c Attributable gold production outlook includes the Company’s equity investment (40%) in Pueblo Viejo with ~285Koz in 2022; does not include the Company’s other equity investments. Attributable gold production outlook represents the Company's 75% interest in Merian.

d All-in sustaining costs (AISC) as used in the Company’s Outlook is a non-GAAP metric; see below for further information and reconciliation to consolidated 2022 CAS outlook.

e Attributable development capital accounts for the acquisition of the remaining interest in Yanacocha, including Buenaventura's 43.65% interest and Sumitomo Corporation's 5% interest, as announced on February 8, 2022 and April 12, 2022, respectively.

f The adjusted tax rate excludes certain items such as tax valuation allowance adjustments.

g Assuming average prices of $1,800 per ounce for gold, $3.25 per pound for copper, $23.00 per ounce for silver, $0.95 per pound for lead, and $1.15 per pound for zinc and achievement of current production and sales volumes and cost estimates, we estimate our consolidated adjusted effective tax rate related to continuing operations for 2022 will be between 30%-34%.

Three Months Ended September 30,

Nine Months Ended September 30,

Operating Results

2022

2021

% Change

2022

2021

% Change

Attributable Sales (koz)

Attributable gold ounces sold (1)

1,369

1,357

1

%

4,115

4,101

%

Attributable gold equivalent ounces sold

281

301

(7

) %

964

930

4

%

Average Realized Price ($/oz, $/lb)

Average realized gold price

$

1,691

$

1,778

(5

) %

$

1,806

$

1,783

1

%

Average realized copper price

$

2.80

$

3.99

(30

) %

$

3.54

$

4.19

(16

) %

Average realized silver price

$

15.42

$

18.34

(16

) %

$

17.81

$

20.32

(12

) %

Average realized lead price

$

0.86

$

0.99

(13

) %

$

0.92

$

0.96

(4

) %

Average realized zinc price

$

1.25

$

1.24

1

%

$

1.41

$

1.21

17

%

Attributable Production (koz)

North America

404

384

5

%

1,029

1,194

(14

) %

South America

185

188

(2

) %

593

551

8

%

Australia

296

274

8

%

944

842

12

%

Africa

254

210

21

%

695

617

13

%

Nevada

267

308

(13

) %

845

895

(6

) %

Total Gold (excluding equity method investments)

1,406

1,364

3

%

4,106

4,099

%

Pueblo Viejo (40%) (2)

81

85

(5

) %

220

254

(13

) %

Total Gold

1,487

1,449

3

%

4,326

4,353

(1

) %

North America

254

275

(8

) %

819

820

%

Australia

45

40

13

%

160

115

39

%

Total Gold Equivalent Ounces

299

315

(5

) %

979

935

5

%

CAS Consolidated ($/oz, $/GEO)

North America

$

980

$

800

23

%

$

1,032

$

767

35

%

South America

$

1,145

$

958

20

%

$

1,010

$

822

23

%

Australia

$

754

$

788

(4

) %

$

740

$

767

(4

) %

Africa

$

918

$

886

4

%

$

877

$

804

9

%

Nevada

$

1,104

$

768

44

%

$

1,010

$

755

34

%

Total Gold

$

968

$

830

17

%

$

931

$

779

20

%

Total Gold (by-product)

$

907

$

698

30

%

$

847

$

629

35

%

North America

$

699

$

595

17

%

$

815

$

564

45

%

Australia

$

776

$

914

(15

) %

$

768

$

913

(16

) %

Total Gold Equivalent Ounces

$

712

$

638

12

%

$

807

$

606

33

%

AISC Consolidated ($/oz, $/GEO)

North America

$

1,285

$

1,026

25

%

$

1,318

$

988

33

%

South America

$

1,423

$

1,276

12

%

$

1,241

$

1,119

11

%

Australia

$

984

$

1,025

(4

) %

$

938

$

1,040

(10

) %

Africa

$

1,085

$

1,114

(3

) %

$

1,067

$

1,023

4

%

Nevada

$

1,358

$

945

44

%

$

1,232

$

931

32

%

Total Gold

$

1,271

$

1,120

13

%

$

1,209

$

1,064

14

%

Total Gold (by-product)

$

1,268

$

1,041

22

%

$

1,192

$

970

23

%

North America

$

982

$

822

19

%

$

1,094

$

781

40

%

Australia

$

888

$

1,025

(13

) %

$

893

$

1,155

(23

) %

Total Gold Equivalent Ounces

$

999

$

887

13

%

$

1,098

$

863

27

%

(1)

Attributable gold ounces from the Pueblo Viejo mine, an equity method investment, are not included in attributable gold ounces sold.

(2)

Represents attributable gold from Pueblo Viejo and does not include the Company's other equity method investments. Attributable gold ounces produced at Pueblo Viejo are not included in attributable gold ounces sold, as noted in footnote 1. Income and expenses of equity method investments are included in Equity income (loss) of affiliates.

NEWMONT CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited, in millions except per share)

Three Months Ended
September 30,

Nine Months Ended
September 30,

2022

2021

2022

2021

Sales

$

2,634

$

2,895

$

8,715

$

8,832

Costs and expenses

Costs applicable to sales (1)

1,545

1,367

4,688

3,895

Depreciation and amortization

508

570

1,614

1,684

Reclamation and remediation

53

117

163

220

Exploration

69

60

169

147

Advanced projects, research and development

80

40

169

108

General and administrative

73

61

210

190

Loss on assets held for sale

571

571

Other expense, net

11

43

68

134

2,339

2,829

7,081

6,949

Other income (expense):

Other income (loss), net

56

(71

)

(128

)

(60

)

Interest expense, net of capitalized interest

(55

)

(66

)

(174

)

(208

)

1

(137

)

(302

)

(268

)

Income (loss) before income and mining tax and other items

296

(71

)

1,332

1,615

Income and mining tax benefit (expense)

(96

)

(222

)

(343

)

(798

)

Equity income (loss) of affiliates

25

39

81

138

Net income (loss) from continuing operations

225

(254

)

1,070

955

Net income (loss) from discontinued operations

(5

)

11

19

42

Net income (loss)

220

(243

)

1,089

997

Net loss (income) attributable to noncontrolling interests

(7

)

246

(41

)

215

Net income (loss) attributable to Newmont stockholders

$

213

$

3

$

1,048

$

1,212

Net income (loss) attributable to Newmont stockholders:

Continuing operations

$

218

$

(8

)

$

1,029

$

1,170

Discontinued operations

(5

)

11

19

42

$

213

$

3

$

1,048

$

1,212

Weighted average common shares (millions):

Basic

794

799

793

800

Effect of employee stock-based awards

1

1

2

2

Diluted

795

800

795

802

Net income (loss) attributable to Newmont stockholders per common share

Basic:

Continuing operations

$

0.28

$

(0.01

)

$

1.30

$

1.47

Discontinued operations

(0.01

)

0.01

0.02

0.05

$

0.27

$

$

1.32

$

1.52

Diluted: (2)

Continuing operations

$

0.28

$

(0.01

)

$

1.30

$

1.46

Discontinued operations

(0.01

)

0.01

0.02

0.05

$

0.27

$

$

1.32

$

1.51

(1)

Excludes Depreciation and amortization and Reclamation and remediation.

(2)

For the three months ended September 30, 2021, potentially dilutive shares were excluded in the computation of diluted loss per common share attributable to Newmont stockholders as they were antidilutive.

NEWMONT CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited, in millions)

Three Months Ended
September 30,

Nine Months Ended
September 30,

2022

2021

2022

2021

Operating activities:

Net income (loss)

$

220

$

(243

)

$

1,089

$

997

Non-cash adjustments:

Depreciation and amortization

508

570

1,614

1,684

Loss on assets held for sale

571

571

Net loss (income) from discontinued operations

5

(11

)

(19

)

(42

)

Reclamation and remediation

46

112

149

208

Deferred income taxes

(34

)

(24

)

(145

)

(10

)

Charges from pension settlement

130

Change in fair value of investments

(5

)

96

91

180

Stock-based compensation

17

17

57

55

Other non-cash adjustments

19

32

34

(98

)

Net change in operating assets and liabilities

(310

)

13

(812

)

(578

)

Net cash provided by (used in) operating activities of continuing operations

466

1,133

2,188

2,967

Net cash provided by (used in) operating activities of discontinued operations

7

11

22

13

Net cash provided by (used in) operating activities

473

1,144

2,210

2,980

Investing activities:

Additions to property, plant and mine development

(529

)

(398

)

(1,485

)

(1,212

)

Purchases of investments

(657

)

(2

)

(665

)

(18

)

Contributions to equity method investees

(61

)

(42

)

(152

)

(114

)

Proceeds from asset and investment sales

16

26

57

111

Return of investment from equity method investees

13

52

18

Payment relating to sale of La Zanja

(45

)

Acquisitions, net

(15

)

(328

)

Other

(5

)

26

(4

)

26

Net cash provided by (used in) investing activities

(1,223

)

(390

)

(2,257

)

(1,517

)

Financing activities:

Dividends paid to common stockholders

(437

)

(440

)

(1,310

)

(1,321

)

Acquisition of noncontrolling interests

(348

)

Distributions to noncontrolling interests

(37

)

(58

)

(140

)

(155

)

Funding from noncontrolling interests

33

25

89

73

Repayment of debt

(89

)

(550

)

Payments on lease and other financing obligations

(16

)

(18

)

(50

)

(54

)

Payments for withholding of employee taxes related to stock-based compensation

(2

)

(2

)

(38

)

(31

)

Repurchases of common stock

(114

)

(248

)

Other

(1

)

(90

)

9

(77

)

Net cash provided by (used in) financing activities

(460

)

(697

)

(1,877

)

(2,363

)

Effect of exchange rate changes on cash, cash equivalents and restricted cash

(20

)

(3

)

(29

)

(3

)

Net change in cash, cash equivalents and restricted cash

(1,230

)

54

(1,953

)

(903

)

Cash, cash equivalents and restricted cash at beginning of period

4,370

4,691

5,093

5,648

Cash, cash equivalents and restricted cash at end of period

$

3,140

$

4,745

$

3,140

$

4,745

NEWMONT CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited, in millions)

Three Months Ended
September 30,

Nine Months Ended
September 30,

2022

2021

2022

2021

Reconciliation of cash, cash equivalents and restricted cash:

Cash and cash equivalents

$

3,058

$

4,636

$

3,058

$

4,636

Restricted cash included in Other current assets

18

2

18

2

Restricted cash included in Other non-current assets

64

107

64

107

Total cash, cash equivalents and restricted cash

$

3,140

$

4,745

$

3,140

$

4,745

NEWMONT CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(unaudited, in millions)

At September 30,
2022

At December 31,
2021

ASSETS

Cash and cash equivalents

$

3,058

$

4,992

Time deposits and other investments

755

82

Trade receivables

289

337

Inventories

1,000

930

Stockpiles and ore on leach pads

694

857

Other current assets

524

498

Current assets

6,320

7,696

Property, plant and mine development, net

24,150

24,124

Investments

3,198

3,243

Stockpiles and ore on leach pads

1,839

1,775

Deferred income tax assets

208

269

Goodwill

2,771

2,771

Other non-current assets

657

686

Total assets

$

39,143

$

40,564

LIABILITIES

Accounts payable

$

570

$

518

Employee-related benefits

337

386

Income and mining taxes payable

174

384

Lease and other financing obligations

94

106

Debt

87

Other current liabilities

1,149

1,173

Current liabilities

2,324

2,654

Debt

5,569

5,565

Lease and other financing obligations

464

544

Reclamation and remediation liabilities

5,825

5,839

Deferred income tax liabilities

1,864

2,144

Employee-related benefits

364

439

Silver streaming agreement

850

910

Other non-current liabilities

483

608

Total liabilities

17,743

18,703

Contingently redeemable noncontrolling interest

48

EQUITY

Common stock

1,279

1,276

Treasury stock

(238

)

(200

)

Additional paid-in capital

17,354

17,981

Accumulated other comprehensive income (loss)

(7

)

(133

)

Retained earnings (accumulated deficit)

2,831

3,098

Newmont stockholders' equity

21,219

22,022

Noncontrolling interests

181

(209

)

Total equity

21,400

21,813

Total liabilities and equity

$

39,143

$

40,564

Non-GAAP Financial Measures

Non-GAAP financial measures are intended to provide additional information only and do not have any standard meaning prescribed by GAAP. These measures should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP. Refer to Non-GAAP Financial Measures within Part II, Item 7 within our Form 10-K filed with the SEC on February 24, 2022 for further information on the Non-GAAP financial measures presented below, including why management believes that its presentation of non-GAAP financial measures provides useful information to investors.

Adjusted net income (loss)

Net income (loss) attributable to Newmont stockholders is reconciled to Adjusted net income (loss) as follows:

Three Months Ended
September 30, 2022

Nine Months Ended
September 30, 2022

per share data (1)

per share data (1)

basic

diluted

basic

diluted

Net income (loss) attributable to Newmont stockholders

$

213

$

0.27

$

0.27

$

1,048

$

1.32

$

1.32

Net loss (income) attributable to Newmont stockholders from discontinued operations

5

0.01

0.01

(19

)

(0.02

)

(0.02

)

Net income (loss) attributable to Newmont stockholders from continuing operations

218

0.28

0.28

1,029

1.30

1.30

Pension settlement (2)

130

0.16

0.16

Change in fair value of investments (3)

(5

)

(0.01

)

(0.01

)

91

0.11

0.11

(Gain) loss on asset and investment sales (4)

(9

)

(0.01

)

(0.01

)

26

0.03

0.03

Settlement costs (5)

2

20

0.03

0.03

Reclamation and remediation charges (6)

13

0.02

0.02

Restructuring and severance (7)

2

3

Impairment of long-lived and other assets (8)

1

3

COVID-19 specific costs (9)

1

Other (10)

(18

)

(0.03

)

(0.03

)

Tax effect of adjustments (11)

1

(61

)

(0.07

)

(0.07

)

Valuation allowance and other tax adjustments (12)

2

0.01

0.01

(117

)

(0.14

)

(0.14

)

Adjusted net income (loss)

$

212

$

0.27

$

0.27

$

1,120

$

1.41

$

1.41

Weighted average common shares (millions): (13)

794

795

793

795

(1)

Per share measures may not recalculate due to rounding.

(2)

Pension settlement, included in Other income (loss), net, represents pension settlement charges in 2022 related to the annuitization of certain defined benefit plans. For further information, refer to Note 7 of the Condensed Consolidated Financial Statements.

(3)

Change in fair value of investments, included in Other income (loss), net, primarily represents unrealized gains and losses related to the Company's investment in current and non-current marketable and other equity securities. For further information regarding our investments, refer to Note 10 of the Condensed Consolidated Financial Statements.

(4)

(Gain) loss on asset and investment sales, included in Other income (loss), net, primarily represents the loss recognized on the sale of the La Zanja equity method investment partially offset by a gain on the sale of a royalty in NGM during the third quarter of 2022. For further information, refer to Note 7 of the Condensed Consolidated Financial Statements.

(5)

Settlement costs, included in Other expense, net, primarily are comprised of legal settlement and a voluntary contribution made to support humanitarian efforts in Ukraine.

(6)

Reclamation and remediation charges, included in Reclamation and remediation, represent revisions to reclamation and remediation plans at the Company's former operating properties and historic mining operations that have entered the closure phase and have no substantive future economic value. For further information, refer to Note 5 of the Condensed Consolidated Financial Statements.

(7)

Restructuring and severance, included in Other expense, net, primarily represents severance and related costs associated with significant organizational or operating model changes implemented by the Company.

(8)

Impairment of long-lived and other assets, included in Other expense, net, represents non-cash write-downs of various assets that are no longer in use and materials and supplies inventories.

(9)

COVID-19 specific costs, included in Other expense, net, primarily include amounts distributed from Newmont Global Community Support Fund to help host communities, governments and employees combat the COVID-19 pandemic.

(10)

Primarily comprised of a reimbursement of certain historical Goldcorp operational expenses related to a legacy project that reached commercial production in the second quarter of 2022, included in Other income (loss), net.

(11)

The tax effect of adjustments, included in Income and mining tax benefit (expense), represents the tax effect of adjustments in footnotes (2) through (10), as described above, and are calculated using the applicable regional tax rate.

(12)

Valuation allowance and other tax adjustments, included in Income and mining tax benefit (expense), is recorded for items such as foreign tax credits, capital losses, disallowed foreign losses, and the effects of changes in foreign currency exchange rates on deferred tax assets and deferred tax liabilities. The adjustment for the three and nine months ended September 30, 2022 reflects the net increase or (decrease) to net operating losses, capital losses, tax credit carryovers, and other deferred tax assets subject to valuation allowance of $19 and $68, the effects of changes in foreign exchange rates on deferred tax assets and liabilities of $(22) and $(48), net reductions to the reserve for uncertain tax positions of $4 and $(13), other tax adjustments of $1 and $1, and a tax settlement in Mexico of $— and $(125). For further information on reductions to the reserve for uncertain tax positions, refer to Note 8 of the Condensed Consolidated Financial Statements.

(13)

Adjusted net income (loss) per diluted share is calculated using diluted common shares in accordance with GAAP.

Three Months Ended
September 30, 2021

Nine Months Ended
September 30, 2021

per share data (1)

per share data (1)

basic

diluted

basic

diluted

Net income (loss) attributable to Newmont stockholders

$

3

$

$

$

1,212

$

1.52

$

1.51

Net loss (income) attributable to Newmont stockholders from discontinued operations

(11

)

(0.01

)

(0.01

)

(42

)

(0.05

)

(0.05

)

Net income (loss) attributable to Newmont stockholders from continuing operations

(8

)

(0.01

)

(0.01

)

1,170

1.47

1.46

Loss on assets held for sale, net (2)

372

0.47

0.46

372

0.47

0.46

Change in fair value of investments (3)

96

0.12

0.12

180

0.23

0.23

Reclamation and remediation charges (4)

79

0.10

0.10

109

0.14

0.14

Gain (loss) on asset and investment sales (5)

(3

)

(46

)

(0.05

)

(0.05

)

Impairment of long-lived and other assets (6)

6

0.01

0.01

18

0.02

0.02

Settlement costs (7)

11

0.01

0.01

Restructuring and severance, net (8)

9

0.01

0.01

COVID-19 specific costs (9)

1

3

Impairment of investments

1

1

Tax effect of adjustments (10)

(167

)

(0.22

)

(0.21

)

(197

)

(0.27

)

(0.25

)

Valuation allowance and other tax adjustments, net (11)

106

0.13

0.13

117

0.15

0.15

Adjusted net income (loss) (12)

$

483

$

0.60

$

0.60

$

1,747

$

2.18

$

2.18

Weighted average common shares (millions): (13)

799

800

800

802

(1)

Per share measures may not recalculate due to rounding.

(2)

Loss on assets held for sale, net, included in Loss on assets held for sale, represents the loss recognized due to the reclassification of the Conga mill assets as held for sale during the third quarter of 2021. The assets were remeasured to fair value less costs to sell. Amounts are presented net of income (loss) attributable to noncontrolling interests of $(199) and $(199), respectively. For further information, refer to Note 1 of the Condensed Consolidated Financial Statements.

(3)

Change in fair value of investments, included in Other income (loss), net, primarily represents unrealized gains and losses on marketable and other equity securities and our investment instruments. For further information regarding our investments, refer to Note 10 of the Condensed Consolidated Financial Statements.

(4)

Reclamation and remediation charges, included in Reclamation and remediation, represent revisions to reclamation and remediation plans at the Company's former operating properties and historic mining operations that have entered the closure phase and have no substantive future economic value. Refer to Note 5 of the Condensed Consolidated Financial Statements for further information.

(5)

(Gain) loss on asset and investment sales, included in Other income (loss), net, primarily represents a gain on the sale of TMAC. For further information, refer to Note 7 of the Condensed Consolidated Financial Statements.

(6)

Impairment of long-lived and other assets, included in Other expense, net, represents non-cash write-downs of various assets that are no longer in use and materials and supplies inventories.

(7)

Settlement costs, included in Other expense, net, primarily are comprised of a voluntary contribution made to the Republic of Suriname.

(8)

Restructuring and severance, net, included in Other expense, net, primarily represents severance and related costs associated with significant organizational or operating model changes implemented by the Company. Amounts are presented net of income (loss) attributable to noncontrolling interests of $— and $(1), respectively.

(9)

COVID-19 specific costs included in Other expense, net, primarily include amounts distributed from the Newmont Global Community Fund to help host communities, governments and employees combat the COVID-19 pandemic. Adjusted net income (loss) has not been adjusted for $23 and $63, respectively, of incremental COVID-19 costs incurred as a result of actions taken to protect against the impacts of the COVID-19 pandemic at our operational sites.

(10)

The tax effect of adjustments, included in Income and mining tax benefit (expense), represents the tax effect of adjustments in footnotes (2) through (9), as described above, and are calculated using the applicable regional tax rate.

(11)

Valuation allowance and other tax adjustments, net, included in Income and mining tax benefit (expense), is recorded for items such as foreign tax credits, alternative minimum tax credits, capital losses, disallowed foreign losses, and the effects of changes in foreign currency exchange rates on deferred tax assets and deferred tax liabilities. The adjustment for the three and nine months ended September 30, 2021 is due to increases or (decreases) to net operating losses, tax credit carryovers and other deferred tax assets subject to valuation allowance of $185 and $215 respectively, the effects of changes in foreign exchange rates on deferred tax assets and liabilities of $(11) and $(28) respectively, changes to the reserve for uncertain tax positions of $(1) and $21 respectively, and other tax adjustments of $2 and $(17), respectively. Total amount is presented net of income (loss) attributable to noncontrolling interests of $(69) and $(74), respectively.

(12)

Adjusted net income (loss) has not been adjusted for cash care and maintenance costs, included in Other expense, net, which represent costs incurred associated with our Tanami mine site being temporarily placed into care and maintenance in response to the COVID-19 pandemic during a portion of the three and nine months ended September 30, 2021. Cash care and maintenance costs were $6 and $8 during the three and nine months ended September 30, 2021, respectively.

(13)

Adjusted net income (loss) per diluted share is calculated using diluted common shares in accordance with U.S. GAAP. For the three months ended September 30, 2021, potentially dilutive shares of 1 million were excluded from the computation of diluted loss per common share attributable to Newmont stockholders in the Condensed Consolidated Statement of Operations as they were antidilutive. These shares were included in the computation of adjusted net income per diluted share for the nine months ended September 30, 2021.

Earnings before interest, taxes, depreciation and amortization and Adjusted earnings before interest, taxes, depreciation and amortization

Net income (loss) attributable to Newmont stockholders is reconciled to EBITDA and Adjusted EBITDA as follows:

Three Months Ended
September 30,

Nine Months Ended
September 30,

2022

2021

2022

2021

Net income (loss) attributable to Newmont stockholders

$

213

$

3

$

1,048

$

1,212

Net income (loss) attributable to noncontrolling interests

7

(246

)

41

(215

)

Net loss (Income) from discontinued operations

5

(11

)

(19

)

(42

)

Equity loss (income) of affiliates

(25

)

(39

)

(81

)

(138

)

Income and mining tax expense (benefit)

96

222

343

798

Depreciation and amortization

508

570

1,614

1,684

Interest expense, net of capitalized interest

55

66

174

208

EBITDA

$

859

$

565

$

3,120

$

3,507

Adjustments:

Pension settlement (1)

$

$

$

130

$

Change in fair value of investments (2)

(5

)

96

91

180

(Gain) loss on asset and investment sales (3)

(9

)

(3

)

26

(46

)

Settlement costs (4)

2

20

11

Reclamation and remediation charges (5)

79

13

109

Restructuring and severance (6)

2

3

10

Impairment of long-lived and other assets (7)

1

6

3

18

COVID-19 specific costs (8)

1

1

3

Loss on assets held for sale (9)

571

571

Impairment of investments (10)

1

1

Other (11)

(18

)

Adjusted EBITDA

$

850

$

1,316

$

3,389

$

4,364

(1)

Pension settlement, included in Other income (loss), net, represents pension settlement charges in 2022 related to the annuitization of certain defined benefit plans. For further information, refer to Note 7 of the Condensed Consolidated Financial Statements.

(2)

Change in fair value of investments, included in Other income (loss), net, primarily represents unrealized gains and losses related to the Company's investments in current and non-current marketable and other equity securities. For further information regarding our investments, refer to Note 10 of the Condensed Consolidated Financial Statements.

(3)

(Gain) loss on asset and investment sales, included in Other income (loss), net, for 2022 is primarily comprised of the loss recognized on the sale of the La Zanja equity method investment partially offset by a gain on the sale of a royalty in NGM in the third quarter of 2022 and for 2021 is primarily comprised of a gain on the sale of TMAC. For further information, refer to Note 7 of the Condensed Consolidated Financial Statements.

(4)

Settlement costs, included in Other expense, net, are primarily comprised of a legal settlement and a voluntary contribution made to support humanitarian efforts in Ukraine in 2022 and a voluntary contribution to the Republic of Suriname in 2021.

(5)

Reclamation and remediation charges, included in Reclamation and remediation, represent revisions to reclamation and remediation plans at the Company's former operating properties and historic mining operations that have entered the closure phase and have no substantive future economic value. For further information, refer to Note 5 of the Condensed Consolidated Financial Statements.

(6)

Restructuring and severance, included in Other expense, net, primarily represents severance and related costs associated with significant organizational or operating model changes implemented by the Company for all periods presented.

(7)

Impairment of long-lived and other assets, included in Other expense, net, represents non-cash write-downs of various assets that are no longer in use and materials and supplies inventories.

(8)

COVID-19 specific costs, included in Other expense, net, primarily include amounts distributed from Newmont Global Community Support Fund to help host communities, governments and employees combat the COVID-19 pandemic.

(9)

Loss on assets held for sale, included in Loss on assets held for sale, represents the loss recognized due to the reclassification of the Conga mill assets as held for sale during the third quarter of 2021. For further information, refer to Note 1 of the Condensed Consolidated Financial Statements.

(10)

Impairment of investments, included in Other income (loss), net, primarily represents other-than-temporary impairment of other investments.

(11)

Primarily comprised of a reimbursement of certain historical Goldcorp operational expenses related to a legacy project that reached commercial production in the second quarter of 2022, included in Other income (loss), net.

Income (loss) before income and mining tax and other items is reconciled to NGM EBITDA as follows:

Three Months Ended
September 30,

Nine Months Ended
September 30,

2022

2021

2022

2021

Income (Loss) before Income and Mining Tax and other Items, NGM (1)

$ 49

$ 162

$ 293

$ 499

Depreciation and amortization (1)

109

131

361

386

NGM EBITDA

$ 158

$ 293

$ 654

$ 885

(1)

Refer to Note 3 of the Condensed Consolidated Financial Statements.

Free Cash Flow

The following table sets forth a reconciliation of Free Cash Flow to Net cash provided by (used in) operating activities, which the Company believes to be the GAAP financial measure most directly comparable to Free Cash Flow, as well as information regarding Net cash provided by (used in) investing activities and Net cash provided by (used in) financing activities.

Three Months Ended
September 30,

Nine Months Ended
September 30,

2022

2021

2022

2021

Net cash provided by (used in) operating activities

$

473

$

1,144

$

2,210

$

2,980

Less: Net cash used in (provided by) operating activities of discontinued operations

$

(7

)

(11

)

(22

)

(13

)

Net cash provided by (used in) operating activities of continuing operations

$

466

1,133

2,188

2,967

Less: Additions to property, plant and mine development

$

(529

)

(398

)

(1,485

)

(1,212

)

Free Cash Flow

$

(63

)

$

735

$

703

$

1,755

Net cash provided by (used in) investing activities (1)

$

(1,223

)

$

(390

)

$

(2,257

)

$

(1,517

)

Net cash provided by (used in) financing activities

$

(460

)

$

(697

)

$

(1,877

)

$

(2,363

)

(1)

Net cash provided by (used in) investing activities includes Additions to property, plant and mine development, which is included in the Company’s computation of Free Cash Flow.​

Attributable Free Cash Flow

Management uses Attributable Free Cash Flow as a non-GAAP measure to analyze cash flows generated from operations that are attributable to the Company. Attributable Free Cash Flow is Net cash provided by (used in) operating activities after deducting net cash flows from operations attributable to noncontrolling interests less Net cash provided by (used in) operating activities of discontinued operations after deducting net cash flows from discontinued operations attributable to noncontrolling interests less Additions to property, plant and mine development after deducting property, plant and mine development attributable to noncontrolling interests. The Company believes that Attributable Free Cash Flow is useful as one of the bases for comparing the Company’s performance with its competitors. Although Attributable Free Cash Flow and similar measures are frequently used as measures of cash flows generated from operations by other companies, the Company’s calculation of Attributable Free Cash Flow is not necessarily comparable to such other similarly titled captions of other companies.

The presentation of non-GAAP Attributable Free Cash Flow is not meant to be considered in isolation or as an alternative to Net income attributable to Newmont stockholders as an indicator of the Company’s performance, or as an alternative to Net cash provided by (used in) operating activities as a measure of liquidity as those terms are defined by GAAP, and does not necessarily indicate whether cash flows will be sufficient to fund cash needs. The Company’s definition of Attributable Free Cash Flow is limited in that it does not represent residual cash flows available for discretionary expenditures due to the fact that the measure does not deduct the payments required for debt service and other contractual obligations or payments made for business acquisitions. Therefore, the Company believes it is important to view Attributable Free Cash Flow as a measure that provides supplemental information to the Company’s Condensed Consolidated Statements of Cash Flows.

The following tables set forth a reconciliation of Attributable Free Cash Flow, a non-GAAP financial measure, to Net cash provided by (used in) operating activities, which the Company believes to be the GAAP financial measure most directly comparable to Attributable Free Cash Flow, as well as information regarding Net cash provided by (used in) investing activities and Net cash provided by (used in) financing activities.

Three Months Ended September 30, 2022

Nine Months Ended September 30, 2022

Consolidated

Attributable to
noncontrolling
interests (1)

Attributable to
Newmont
Stockholders

Consolidated

Attributable to
noncontrolling
interests (1)

Attributable to
Newmont
Stockholders

Net cash provided by (used in) operating activities

$

473

$

(11

)

$

462

$

2,210

$

(64

)

$

2,146

Less: Net cash used in (provided by) operating activities of discontinued operations

(7

)

(7

)

(22

)

(22

)

Net cash provided by (used in) operating activities of continuing operations

466

(11

)

455

2,188

(64

)

2,124

Less: Additions to property, plant and mine development (2)

(529

)

4

(525

)

(1,485

)

25

(1,460

)

Free Cash Flow

$

(63

)

$

(7

)

$

(70

)

$

703

$

(39

)

$

664

Net cash provided by (used in) investing activities (3)

$

(1,223

)

$

(2,257

)

Net cash provided by (used in) financing activities

$

(460

)

$

(1,877

)

(1)

Adjustment to eliminate a portion of Net cash provided by (used in) operating activities, Net cash provided by (used in) operating activities of discontinued operations and Additions to property, plant and mine development attributable to noncontrolling interests.

(2)

For the three months ended September 30, 2022, Yanacocha and Merian had total consolidated Additions to property, plant and mine development of $86 and $14, respectively, on a cash basis. For the nine months ended September 30, 2022, Yanacocha and Merian had total consolidated Additions to property, plant and mine development of $237 and $37, respectively, on a cash basis.

(3)

Net cash provided by (used in) investing activities includes Additions to property, plant and mine development, which is included in the Company’s computation of Free Cash Flow.

Three Months Ended September 30, 2021

Nine Months Ended September 30, 2021

Consolidated

Attributable to
noncontrolling
interests (1)

Attributable to
Newmont
Stockholders

Consolidated

Attributable to
noncontrolling
interests (1)

Attributable to
Newmont
Stockholders

Net cash provided by (used in) operating activities

$

1,144

$

(39

)

$

1,105

$

2,980

$

(92

)

$

2,888

Less: Net cash used in (provided by) operating activities of discontinued operations

(11

)

(11

)

(13

)

(13

)

Net cash provided by (used in) operating activities of continuing operations

1,133

(39

)

1,094

2,967

(92

)

2,875

Less: Additions to property, plant and mine development (2)

(398

)

19

(379

)

(1,212

)

50

(1,162

)

Free Cash Flow

$

735

$

(20

)

$

715

$

1,755

$

(42

)

$

1,713

Net cash provided by (used in) investing activities (3)

$

(390

)

$

(1,517

)

Net cash provided by (used in) financing activities

$

(697

)

$

(2,363

)

(1)

Adjustment to eliminate a portion of Net cash provided by (used in) operating activities, Net cash provided by (used in) operating activities of discontinued operations and Additions to property, plant and mine development attributable to noncontrolling interests, which relate to Yanacocha (48.65%) and Merian (25%).

(2)

For the three months ended September 30, 2021, Yanacocha and Merian had total consolidated Additions to property, plant and mine development of $35 and $9, respectively, on a cash basis. For the nine months ended September 30, 2021, Yanacocha and Merian had total consolidated Additions to property, plant and mine development of $88 and $31, respectively, on a cash basis.

(3)

Net cash provided by (used in) investing activities includes Additions to property, plant and mine development, which is included in the Company’s computation of Free Cash Flow.

Net Debt

Management uses Net Debt to measure the Company’s liquidity and financial position. Net Debt is calculated as Debt and Lease and other financing obligations less Cash and cash equivalents and time deposits included in Time deposits and other investments, as presented on the Condensed Consolidated Balance Sheets. Cash and cash equivalents and time deposits are subtracted from Debt and Lease and other financing obligations as these are highly liquid, low-risk investments and could be used to reduce the Company's debt obligations. The Company believes the use of Net Debt allows investors and others to evaluate financial flexibility and strength of the Company's balance sheet. Net Debt is intended to provide additional information only and does not have any standardized meaning prescribed by GAAP and should not be considered in isolation or as a substitute for measures of liquidity prepared in accordance with GAAP. Other companies may calculate this measure differently.

The following table sets forth a reconciliation of Net Debt, a non-GAAP financial measure, to Debt and Lease and other financing obligations, which the Company believes to be the GAAP financial measures most directly comparable to Net Debt.

At September 30,
2022

At December 31,
2021

Debt

$

5,569

$

5,652

Lease and other financing obligations

558

650

Less: Cash and cash equivalents

(3,058

)

(4,992

)

Less: Time deposits (1)

(653

)

Net debt

$

2,416

$

1,310

(1)

Time deposits are included within Time deposits and other investments on the Condensed Consolidated Balance Sheets. Refer to Note 10 of the Condensed Consolidated Financial Statements for further information.

Costs applicable to sales per ounce/gold equivalent ounce

Costs applicable to sales per ounce/gold equivalent ounce are calculated by dividing the costs applicable to sales of gold and other metals by gold ounces or gold equivalent ounces sold, respectively. These measures are calculated for the periods presented on a consolidated basis.

The following tables reconcile these non-GAAP measures to the most directly comparable GAAP measures.

Costs applicable to sales per gold ounce

Three Months Ended
September 30,

Nine Months Ended
September 30,

2022

2021

2022

2021

Costs applicable to sales (1)(2)

$

1,345

$

1,175

$

3,910

$

3,331

Gold sold (thousand ounces)

1,391

1,416

4,202

4,277

Costs applicable to sales per ounce (3)

$

968

$

830

$

931

$

779

(1)

Includes by-product credits of $22 and $27 during the three months ended September 30, 2022 and 2021, respectively, and $75 and $154 during the nine months ended September 30, 2022 and 2021, respectively.

(2)

Excludes Depreciation and amortization and Reclamation and remediation.

(3)

Per ounce measures may not recalculate due to rounding.

Costs applicable to sales per gold equivalent ounce

Three Months Ended
September 30,

Nine Months Ended
September 30,

2022

2021

2022

2021

Costs applicable to sales (1)(2)

$

200

$

192

$

778

$

564

Gold equivalent ounces - other metals (thousand ounces) (3)

281

301

964

930

Costs applicable to sales per gold equivalent ounce (4)

$

712

$

638

$

807

$

606

(1)

Includes by-product credits of $2 and $2 during the three months ended September 30, 2022 and 2021, respectively, and $6 and $5 during the nine months ended September 30, 2022 and 2021, respectively.

(2)

Excludes Depreciation and amortization and Reclamation and remediation.

(3)

Gold equivalent ounces is calculated as pounds or ounces produced multiplied by the ratio of the other metals price to the gold price, using Gold ($1,200/oz.), Copper ($3.25/lb.), Silver ($23.00/oz.), Lead ($0.95/lb.) and Zinc ($1.15/lb.) pricing for 2022 and Gold ($1,200/oz.), Copper ($2.75/lb.), Silver ($22.00/oz.), Lead ($0.90/lb.) and Zinc ($1.05/lb.) pricing for 2021.

(4)

Per ounce measures may not recalculate due to rounding.​

Costs applicable to sales per gold ounce for Nevada Gold Mines (NGM)

Three Months Ended
September 30,

Nine Months Ended
September 30,

2022

2021

2022

2021

Cost applicable to sales, NGM (1)(2)

$

294

$

232

$

853

$

674

Gold sold (thousand ounces), NGM

267

303

845

893

Costs applicable to sales per ounce, NGM (3)

$

1,104

$

768

$

1,010

$

755

(1)

See Note 3 to the Condensed Consolidated Financial Statements.

(2)

Excludes Depreciation and amortization and Reclamation and remediation.

(3)

Per ounce measures may not recalculate due to rounding.

All-In Sustaining Costs

All-in sustaining costs represent the sum of certain costs, recognized as GAAP financial measures, that management considers to be associated with production. All-in sustaining costs per ounce amounts are calculated by dividing all-in sustaining costs by gold ounces or gold equivalent ounces sold.

Three Months Ended
September 30, 2022

Costs
Applicable

to
Sales(1)(2)(3)

Reclamation
Costs(4)

Advanced
Projects,
Research and
Development
and
Exploration(5)

General and
Administrative

Other
Expense,

Net(6)

Treatment
and

Refining
Costs

Sustaining
Capital and
Lease
Related
Costs(7)(8)

All-In
Sustaining
Costs

Ounces
(000)

Sold

All-In
Sustaining
Costs Per
oz.(9)

Gold

CC&V

$

64

$

4

$

3

$

$

1

$

$

12

$

84

48

$

1,750

Musselwhite

47

1

2

15

65

42

1,533

Porcupine

72

1

3

12

88

73

1,199

Éléonore

64

3

19

86

54

1,570

Peñasquito

109

3

1

1

8

20

142

144

982

Other North America

2

2

1

North America

356

12

9

3

1

8

78

467

362

1,285

Yanacocha

74

4

1

2

6

87

53

1,676

Merian

89

1

4

1

13

108

86

1,252

Cerro Negro

71

2

2

18

93

66

1,411

Other South America

3

(1

)

2

South America

234

7

5

3

4

37

290

205

1,423

Boddington

148

3

1

1

4

19

176

177

1,001

Tanami

81

1

2

1

32

117

127

925

Other Australia

2

3

5

Australia

229

4

3

2

2

4

54

298

304

984

Ahafo

155

3

2

(1

)

19

178

153

1,161

Akyem

77

8

1

7

93

100

930

Other Africa

2

1

1

4

Africa

232

11

3

2

27

275

253

1,085

Nevada Gold Mines

294

3

4

2

59

362

267

1,358

Nevada

294

3

4

2

59

362

267

1,358

Corporate and Other

19

53

3

75

Total Gold

$

1,345

$

37

$

43

$

65

$

7

$

12

$

258

$

1,767

1,391

$

1,271

Gold equivalent ounces -
other metals (10)

Peñasquito

$

164

$

4

$

2

$

1

$

(1

)

$

30

$

30

$

230

234

$

982

Other North America

1

1

North America

164

4

2

2

(1

)

30

30

231

234

982

Boddington

36

1

(1

)

3

2

41

47

873

Other Australia

Australia

36

1

(1

)

3

2

41

47

888

Corporate and Other

1

7

1

9

Total Gold Equivalent Ounces

$

200

$

5

$

3

$

8

$

(1

)

$

33

$

33

$

281

281

$

999

Consolidated

$

1,545

$

42

$

46

$

73

$

6

$

45

$

291

$

2,048

(1)

Excludes Depreciation and amortization and Reclamation and remediation.

(2)

Includes by-product credits of $24 and excludes co-product revenues of $284.

(3)

Includes stockpile and leach pad inventory adjustments of $11 at CC&V, $13 at Yanacocha, $2 at Akyem, and $21 at NGM.

(4)

Reclamation costs include operating accretion and amortization of asset retirement costs of $17 and $25, respectively, and exclude accretion and reclamation and remediation adjustments at former operating properties that have entered the closure phase and have no substantive future economic value of $28 and $8, respectively.

(5)

Advanced projects, research and development and exploration excludes development expenditures of $1 at Porcupine, $2 at Peñasquito, $1 at Other North America, $4 at Yanacocha, $4 at Merian, $8 at Cerro Negro, $9 at Other South America, $6 at Tanami, $5 at Other Australia, $5 at Ahafo, $3 at Akyem, $5 at NGM and $50 at Corporate and Other, totaling $103 related to developing new operations or major projects at existing operations where these projects will materially benefit the operation.

(6)

Other expense, net adjusted for settlement costs of $2, restructuring and severance costs of $2, and impairment of long-lived and other assets of $1.

(7)

Includes sustaining capital expenditures of $96 for North America, $37 for South America, $54 for Australia, $26 for Africa, $57 for Nevada, and $6 for Corporate and Other, totaling $276 and excludes development capital expenditures, capitalized interest and the change in accrued capital totaling $253. See Liquidity and Capital Resources within Part I, Item 2, Management's Discussion and Analysis for discussion of major development projects.

(8)

Includes finance lease payments for sustaining projects of $15.

(9)

Per ounce measures may not recalculate due to rounding

(10)

Gold equivalent ounces is calculated as pounds or ounces produced multiplied by the ratio of the other metals price to the gold price, using Gold ($1,200/oz.), Copper ($3.25/lb.), Silver ($23.00/oz.), Lead ($0.95/lb.) and Zinc ($1.15/lb.) pricing for 2022.

Three Months Ended
September 30, 2021

Costs
Applicable
to
Sales(1)(2)(3)

Reclamation
Costs(4)

Advanced
Projects,
Research and
Development
and
Exploration(5)

General and
Administrative

Other
Expense,
Net(6)(7)(8)

Treatment
and
Refining
Costs

Sustaining
Capital and
Lease
Related
Costs(9)(10)

All-In
Sustaining
Costs

Ounces
(000)
Sold

All-In
Sustaining
Costs Per
oz.(11)

Gold

CC&V

$

47

$

2

$

2

$

$

$

$

19

$

70

49

$

1,421

Musselwhite

38

1

10

49

35

1,379

Porcupine

69

2

2

9

82

72

1,139

Éléonore

60

1

1

10

72

58

1,243

Peñasquito

94

1

1

9

16

121

170

706

Other North America

1

1

North America

308

6

5

1

2

9

64

395

384

1,026

Yanacocha

92

20

1

9

1

4

127

67

1,908

Merian

80

2

2

1

9

94

106

884

Cerro Negro

54

1

1

6

16

78

63

1,231

Other South America

3

3

South America

226

23

4

3

16

1

29

302

236

1,276

Boddington

151

2

2

4

13

172

167

1,030

Tanami

69

1

12

29

111

111

986

Other Australia

2

1

3

Australia

220

2

3

2

12

4

43

286

278

1,025

Ahafo

112

2

1

2

19

136

123

1,100

Akyem

77

6

1

15

99

92

1,104

Other Africa

2

2

Africa

189

8

2

2

2

34

237

215

1,114

Nevada Gold Mines

232

2

4

2

1

2

43

286

303

945

Nevada

232

2

4

2

1

2

43

286

303

945

Corporate and Other

31

43

6

80

Total Gold

$

1,175

$

41

$

49

$

53

$

33

$

16

$

219

$

1,586

1,416

$

1,120

Gold equivalent ounces - other metals (12)

Peñasquito

$

155

$

2

$

$

$

2

$

27

$

26

$

212

261

$

819

Other North America

1

1

2

North America

155

2

1

3

27

26

214

261

822

Boddington

37

2

1

40

40

1,013

Other Australia

1

1

Australia

37

2

2

41

40

1,025

Corporate and Other

4

7

1

12

Total Gold Equivalent Ounces

$

192

$

2

$

4

$

8

$

3

$

29

$

29

$

267

301

$

887

Consolidated

$

1,367

$

43

$

53

$

61

$

36

$

45

$

248

$

1,853

(1)

Excludes Depreciation and amortization and Reclamation and remediation.

(2)

Includes by-product credits of $29 and excludes co-product revenues of $379.

(3)

Includes stockpile and leach pad inventory adjustments of $18 at Yanacocha.

(4)

Reclamation costs include operating accretion and amortization of asset retirement costs of $20 and $23, respectively, and exclude accretion and reclamation and remediation adjustments at former operating properties that have entered the closure phase and have no substantive future economic value of $13 and $84, respectively.

(5)

Advanced projects, research and development and exploration excludes development expenditures of $3 at CC&V, $1 at Éléonore, $2 at Peñasquito, $1 at Other North America, $4 at Yanacocha, $2 at Merian, $1 at Cerro Negro, $9 at Other South America, $6 at Tanami, $4 at Other Australia, $5 at Ahafo, $2 at Akyem, $4 at NGM and $3 at Corporate and Other, totaling $47 related to developing new operations or major projects at existing operations where these projects will materially benefit the operation.

(6)

Other expense, net includes $6 of cash care and maintenance costs at Tanami associated with the site temporarily being placed into care and maintenance or operating at reduced levels in response to the COVID-19 pandemic, during the period ended September 30, 2021 that we would have continued to incur if the site were not temporarily placed into care and maintenance.

(7)

Other expense, net includes incremental COVID-19 costs incurred as a result of actions taken to protect against the impacts of the COVID-19 pandemic at our operational sites of $6 for North America, $11 for South America, $5 for Australia and $1 for Africa, totaling $23.

(8)

Adjusted for impairment of long-lived and other assets of $6, and distributions from the Newmont Global Community Support Fund of $1.

(9)

Includes sustaining capital expenditures of $76 for North America, $29 for South America, $42 for Australia, $33 for Africa, $43 for Nevada, and $7 for Corporate and Other, totaling $230 and excludes development capital expenditures, capitalized interest and the change in accrued capital totaling $168. See Liquidity and Capital Resources within Part I, Item 2, Management's Discussion and Analysis for discussion of major development projects.

(10)

Includes finance lease payments for sustaining projects of $18.

(11)

Per ounce measures may not recalculate due to rounding.

(12)

Gold equivalent ounces is calculated as pounds or ounces produced multiplied by the ratio of the other metals price to the gold price, using Gold ($1,200/oz.), Copper ($2.75/lb.), Silver ($22.00/oz.), Lead ($0.90/lb.) and Zinc ($1.05/lb.) pricing for 2021.

Nine Months Ended
September 30, 2022

Costs
Applicable
to

Sales(1)(2)(3)

Reclamation
Costs(4)

Advanced
Projects,

Research and
Development
and

Exploration(5)

General and
Administrative

Other
Expense,

Net(6)

Treatment
and
Refining
Costs

Sustaining
Capital and
Lease
Related
Costs(7)(8)

All-In
Sustaining
Costs

Ounces
(000)
Sold