EX-12.1 2 d653301dex121.htm EX-12.1 EX-12.1

Exhibit 12.1

NEWMONT MINING CORPORATION AND SUBSIDIARIES

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

(Amounts in millions except ratio)

The ratio of earnings to fixed charges represents income before income and mining tax expense, noncontrolling interests, equity income (loss) of affiliates, discontinued operations and cumulative effect of changes in accounting principles, divided by interest expense. Interest expense includes amortization of capitalized interest and the portion of rent expense representative of interest. The financial information of all prior periods has been reclassified to reflect discontinued operations.

 

     Years Ended December 31,  
     2013     2012      2011      2010      2009  

Earnings:

             

Income (Loss) before income and mining tax and other items(1)

   $ (3,585   $ 3,114      $ 1,810      $ 3,997      $ 2,954  

Adjustments:

             

Fixed charges added to earnings

     320       272        267        295        135  

Dividends from equity affiliates

     —         19        31        7        2  

Amortization of capitalized interest

     74       26        24        26        17  
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 
   $ (3,191   $ 3,431      $ 2,132      $ 4,325      $ 3,108  
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

Fixed Charges:

             

Net interest expense(2)

   $ 303     $ 249      $ 244      $ 279      $ 120  

Portion of rental expense representative of interest

     17       23        23        16        15  
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

Fixed charges added to earnings

     320       272        267        295        135  

Capitalized interest

     88       107        52        21        111  
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 
   $ 408     $ 379      $ 319      $ 316      $ 246  
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

Ratio of earnings to fixed charges

     —   (3)      9.1        6.7        13.7        12.6  

 

(1)  Excludes interest on income tax liabilities. Interest and penalties related to income taxes are included in Income and mining tax expense.
(2)  Includes interest expense of majority-owned subsidiaries and amortization of debt issuance costs.
(3)  Earnings for 2013 were inadequate to cover fixed charges by $3,599.