10-Q 1 nem-20150630x10q.htm 10-Q nem_Current folio_10Q_Taxonomy2015

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D. C. 20549

 


 

Form 10-Q

 


(Mark One)

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Quarterly Period Ended June 30, 2015

or

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from              to              

Commission File Number: 001-31240

 


Corporate_2CLR_POS 

NEWMONT MINING CORPORATION

(Exact name of registrant as specified in its charter)

 


 

 

 

 

Delaware

 

84-1611629

(State or Other Jurisdiction of
Incorporation or Organization)

 

(I.R.S. Employer
Identification No.)

 

6363 South Fiddler’s Green Circle

 

 

Greenwood Village, Colorado

 

80111

(Address of Principal Executive Offices)

 

(Zip Code)

 

Registrant’s telephone number, including area code (303) 863-7414

 


Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.      Yes      No

 

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).      Yes      No

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12-b2 of the Exchange Act.

 

 

 

 

 

 

 

 

Large accelerated filer

 

 

Accelerated filer

 

Non-accelerated filer

 

(Do not check if a smaller reporting company.)

Smaller reporting company

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12-b2 of the Exchange Act).      Yes       No

 

There were 529,054,665 shares of common stock outstanding on July 16, 2015.

 

 

 


 

TABLE OF CONTENTS

 

 

 

 

 

 

 

 

 

Page

 

 

PART I

 

 

ITEM 1. 

 

FINANCIAL STATEMENTS

 

 

 

Condensed Consolidated Statements of Income

 

 

 

Condensed Consolidated Statements of Comprehensive Income

 

 

 

Condensed Consolidated Statements of Cash Flows

 

 

 

Condensed Consolidated Balance Sheets

 

 

 

Notes to Condensed Consolidated Financial Statements

 

ITEM 2. 

 

MANAGEMENT’S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS AND FINANCIAL CONDITION

 

40 

 

 

Overview

 

40 

 

 

Selected Financial and Operating Results

 

43 

 

 

Consolidated Financial Results

 

43 

 

 

Results of Consolidated Operations

 

49 

 

 

Liquidity and Capital Resources

 

57 

 

 

Environmental

 

60 

 

 

Accounting Developments

 

60 

 

 

Non-GAAP Financial Measures

 

60 

 

 

Safe Harbor Statement

 

69 

ITEM 3. 

 

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

 

71 

ITEM 4. 

 

CONTROLS AND PROCEDURES

 

73 

 

 

PART II

 

 

ITEM 1. 

 

LEGAL PROCEEDINGS

 

74 

ITEM 1A. 

 

RISK FACTORS

 

74 

ITEM 2. 

 

ISSUER PURCHASES OF EQUITY SECURITIES

 

93 

ITEM 3. 

 

DEFAULTS UPON SENIOR SECURITIES

 

93 

ITEM 4. 

 

MINE SAFETY DISCLOSURES

 

93 

ITEM 5. 

 

OTHER INFORMATION

 

93 

ITEM 6. 

 

EXHIBITS

 

93 

SIGNATURES 

 

94 

EXHIBIT INDEX 

 

95 

 

 

 

 


 

PART I—FINANCIAL INFORMATION

 

ITEM 1.FINANCIAL STATEMENTS. 

NEWMONT MINING CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF INCOME  

(unaudited, in millions except per share)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended 

 

Six Months Ended 

 

 

 

June 30, 

 

June 30, 

 

 

    

2015

    

2014

    

2015

    

2014

  

Sales (Note 3)

 

$

1,908

 

$

1,765

 

$

3,880

 

$

3,529

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Costs and expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

Costs applicable to sales (1) (Note 3)

 

 

1,019

 

 

1,060

 

 

2,038

 

 

2,143

 

Depreciation and amortization

 

 

276

 

 

306

 

 

565

 

 

604

 

Reclamation and remediation (Note 4)

 

 

26

 

 

21

 

 

49

 

 

41

 

Exploration 

 

 

48

 

 

41

 

 

81

 

 

75

 

Advanced projects, research and development

 

 

33

 

 

42

 

 

61

 

 

84

 

General and administrative 

 

 

51

 

 

48

 

 

95

 

 

93

 

Other expense, net (Note 5)

 

 

52

 

 

64

 

 

91

 

 

116

 

 

 

 

1,505

 

 

1,582

 

 

2,980

 

 

3,156

 

Other income (expense)

 

 

 

 

 

 

 

 

 

 

 

 

 

Other income, net (Note 6)

 

 

(23)

 

 

3

 

 

(12)

 

 

49

 

Interest expense, net

 

 

(82)

 

 

(94)

 

 

(167)

 

 

(187)

 

 

 

 

(105)

 

 

(91)

 

 

(179)

 

 

(138)

 

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

 

 

298

 

 

92

 

 

721

 

 

235

 

Income and mining tax benefit (expense) (Note 7)

 

 

(152)

 

 

53

 

 

(345)

 

 

(25)

 

Equity income (loss) of affiliates

 

 

(7)

 

 

2

 

 

(16)

 

 

2

 

Income (loss) from continuing operations 

 

 

139

 

 

147

 

 

360

 

 

212

 

Income (loss) from discontinued operations (Note 8)

 

 

9

 

 

(2)

 

 

17

 

 

(19)

 

Net income (loss)

 

 

148

 

 

145

 

 

377

 

 

193

 

Net loss (income) attributable to noncontrolling interests (Note 9)

 

 

(76)

 

 

35

 

 

(122)

 

 

87

 

Net income (loss) attributable to Newmont stockholders 

 

$

72

 

$

180

 

$

255

 

$

280

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) attributable to Newmont stockholders:

 

 

 

 

 

 

 

 

 

 

 

 

 

Continuing operations 

 

$

63

 

$

182

 

$

238

 

$

299

 

Discontinued operations 

 

 

9

 

 

(2)

 

 

17

 

 

(19)

 

 

 

$

72

 

$

180

 

$

255

 

$

280

 

Income (loss) per common share (Note 10)

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic:

 

 

 

 

 

 

 

 

 

 

 

 

 

Continuing operations 

 

$

0.13

 

$

0.37

 

$

0.48

 

$

0.60

 

Discontinued operations 

 

 

0.01

 

 

(0.01)

 

 

0.03

 

 

(0.04)

 

 

 

$

0.14

 

$

0.36

 

$

0.51

 

$

0.56

 

Diluted:

 

 

 

 

 

 

 

 

 

 

 

 

 

Continuing operations 

 

$

0.13

 

$

0.37

 

$

0.48

 

$

0.60

 

Discontinued operations 

 

 

0.01

 

 

(0.01)

 

 

0.03

 

 

(0.04)

 

 

 

$

0.14

 

$

0.36

 

$

0.51

 

$

0.56

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash dividends declared per common share 

 

$

0.025

 

$

0.025

 

$

0.050

 

$

0.175

 

 


(1)

Excludes Depreciation and amortization and Reclamation and remediation. 

 

 

The accompanying notes are an integral part of the condensed consolidated financial statements.

1


 

NEWMONT MINING CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME 

(unaudited, in millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended June 30, 

 

Six Months Ended June 30, 

 

 

    

2015

    

2014

    

2015

    

2014

  

Net income (loss)

  

$

148

  

$

145

    

$

377

  

$

193

 

Other comprehensive income (loss):

 

 

 

 

 

 

 

 

 

 

 

 

 

Unrealized gain (loss) on marketable securities, net of $nil, $nil, $nil and $(1) tax benefit (expense), respectively

 

 

(8)

 

 

(55)

 

 

(7)

 

 

(86)

 

Foreign currency translation adjustments 

 

 

5

 

 

7

 

 

(5)

 

 

2

 

Change in pension and other post-retirement benefits, net of $(20), $(1), $(22) and $(2), tax benefit (expense), respectively

 

 

39

 

 

1

 

 

44

 

 

3

 

Change in fair value of cash flow hedge instruments, net of $(7), $9, $(3) and $13, tax benefit (expense), respectively

 

 

 

 

 

 

 

 

 

 

 

 

 

Net change from periodic revaluations 

 

 

5

 

 

25

 

 

(17)

 

 

34

 

Net amount reclassified to income 

 

 

11

 

 

(13)

 

 

23

 

 

(13)

 

Net unrecognized gain (loss) on derivatives

 

 

16

 

 

12

 

 

6

 

 

21

 

Other comprehensive income (loss)

 

 

52

 

 

(35)

 

 

38

 

 

(60)

 

Comprehensive income (loss)

 

$

200

 

$

110

 

$

415

 

$

133

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Comprehensive income (loss) attributable to:

 

 

 

 

 

 

 

 

 

 

 

 

 

Newmont stockholders 

 

$

124

 

$

143

 

$

293

 

$

220

 

Noncontrolling interests

 

 

76

 

 

(33)

 

 

122

 

 

(87)

 

 

 

$

200

 

$

110

 

$

415

 

$

133

 

 

 

The accompanying notes are an integral part of the condensed consolidated financial statements.

 

 

2


 

NEWMONT MINING CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS 

(unaudited, in millions)

 

 

 

 

 

 

 

 

 

 

 

 

Six Months Ended June 30, 

 

 

    

2015

    

2014

 

Operating activities:

 

 

 

  

 

 

 

Net income

    

$

377

  

$

193

 

Adjustments:

 

 

 

  

 

 

 

Depreciation and amortization

 

 

565

  

 

604

 

Stock based compensation and other non-cash benefits 

 

 

40

 

 

27

 

Reclamation and remediation

 

 

47

 

 

41

 

Loss (income) from discontinued operations

 

 

(17)

 

 

19

 

Impairment of investments

 

 

73

 

 

1

 

Deferred income taxes 

 

 

130

  

 

(92)

 

Gain on asset and investment sales, net

 

 

(43)

 

 

(52)

 

Other operating adjustments and write-downs 

 

 

165

 

 

273

 

Net change in operating assets and liabilities (Note 23)

 

 

(268)

  

 

(453)

 

Net cash provided by continuing operations 

 

 

1,069

  

 

561

 

Net cash used in discontinued operations

 

 

(6)

  

 

(6)

 

Net cash provided by operations 

 

 

1,063

  

 

555

 

Investing activities:

 

 

 

  

 

 

 

Additions to property, plant and mine development 

 

 

(606)

  

 

(489)

 

Acquisitions, net  

 

 

 —

  

 

(28)

 

Sales of investments

 

 

29

 

 

25

 

Purchases of investments

 

 

 —

  

 

(1)

 

Proceeds from sale of other assets

 

 

44

 

 

76

 

Other 

 

 

(6)

  

 

(11)

 

Net cash used in investing activities 

 

 

(539)

  

 

(428)

 

Financing activities:

 

 

 

  

 

 

 

Proceeds from debt, net

 

 

 —

 

 

18

 

Repayment of debt 

 

 

(281)

  

 

(5)

 

Proceeds from stock issuance, net

 

 

675

 

 

 —

 

Sale of noncontrolling interests

 

 

37

 

 

68

 

Funding from noncontrolling interests

 

 

62

 

 

 —

 

Acquisition of noncontrolling interests

 

 

(6)

 

 

(4)

 

Dividends paid to noncontrolling interests 

 

 

(3)

  

 

(4)

 

Dividends paid to common stockholders 

 

 

(23)

  

 

(89)

 

Restricted cash and other

 

 

(61)

  

 

(11)

 

Net cash provided by (used in) financing activities

 

 

400

 

 

(27)

 

Effect of exchange rate changes on cash 

 

 

(19)

  

 

(2)

 

Net change in cash and cash equivalents 

 

 

905

  

 

98

 

Cash and cash equivalents at beginning of period 

 

 

2,403

  

 

1,555

 

Cash and cash equivalents at end of period 

 

$

3,308

  

$

1,653

 

 

 

The accompanying notes are an integral part of the condensed consolidated financial statements.

 

3


 

NEWMONT MINING CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS 

(unaudited, in millions)

 

 

 

 

 

 

 

 

 

 

 

 

   At June 30,    

 

At December 31, 

 

 

    

2015

    

2014

 

ASSETS

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

3,308

 

$

2,403

 

Trade receivables

 

 

369

 

 

186

 

Other accounts receivables

 

 

186

 

 

290

 

Investments (Note 15)

 

 

33

 

 

73

 

Inventories (Note 16)

 

 

748

 

 

700

 

Stockpiles and ore on leach pads (Note 17)

 

 

791

 

 

666

 

Deferred income tax assets

 

 

212

 

 

240

 

Other current assets (Note 18)

 

 

909

 

 

881

 

Current assets

 

 

6,556

 

 

5,439

 

Property, plant and mine development, net

 

 

13,646

 

 

13,650

 

Investments (Note 15)

 

 

249

 

 

334

 

Stockpiles and ore on leach pads (Note 17)

 

 

2,823

 

 

2,820

 

Deferred income tax assets

 

 

1,777

 

 

1,790

 

Other long-term assets (Note 18)

 

 

910

 

 

883

 

Total assets

 

$

25,961

 

$

24,916

 

 

 

 

 

 

 

 

 

LIABILITIES

 

 

 

 

 

 

 

Debt (Note 19)

 

$

243

 

$

166

 

Accounts payable

 

 

397

 

 

406

 

Employee-related benefits

 

 

227

 

 

307

 

Income and mining taxes

 

 

158

 

 

74

 

Other current liabilities (Note 20)

 

 

1,331

 

 

1,245

 

Current liabilities

 

 

2,356

 

 

2,198

 

Debt (Note 19)

 

 

6,140

 

 

6,480

 

Reclamation and remediation liabilities (Note 4)

 

 

1,653

 

 

1,606

 

Deferred income tax liabilities

 

 

759

 

 

656

 

Employee-related benefits

 

 

452

 

 

492

 

Other long-term liabilities (Note 20)

 

 

333

 

 

395

 

Total liabilities

 

 

11,693

 

 

11,827

 

Commitments and contingencies (Note 25)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EQUITY

 

 

 

 

 

 

 

Common stock

 

 

846

 

 

798

 

Additional paid-in capital

 

 

9,391

 

 

8,712

 

Accumulated other comprehensive income (loss)

 

 

(440)

 

 

(478)

 

Retained earnings

 

 

1,474

 

 

1,242

 

Newmont stockholders' equity

 

 

11,271

 

 

10,274

 

Noncontrolling interests

 

 

2,997

 

 

2,815

 

Total equity

 

 

14,268

 

 

13,089

 

Total liabilities and equity

 

$

25,961

 

$

24,916

 

 

 

The accompanying notes are an integral part of the condensed consolidated financial statements.

 

 

 

4


 

Table of Contents

NEWMONT MINING CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

(dollars in millions, except per share, per ounce and per pound amounts)

NOTE 1     BASIS OF PRESENTATION

 

The interim Condensed Consolidated Financial Statements (“interim statements”) of Newmont Mining Corporation and its subsidiaries (collectively, “Newmont” or the “Company”) are unaudited. In the opinion of management, all adjustments and disclosures necessary for a fair presentation of these interim statements have been included. The results reported in these interim statements are not necessarily indicative of the results that may be reported for the entire year. These interim statements should be read in conjunction with Newmont’s Consolidated Financial Statements for the year ended December 31, 2014 filed on February 20, 2015 on Form 10-K. The year-end balance sheet data was derived from the audited financial statements and, in accordance with the instructions to Form 10-Q, certain information and footnote disclosures required by United States generally accepted accounting principles (“GAAP”) have been condensed or omitted. References to “A$” refer to Australian currency and “NZ$” to New Zealand currency.

 

During the first half of 2015 we received $675 in net proceeds from a common stock issuance.  We intend to use the proceeds from the common stock sale, supplemented with cash from our balance sheet, to fund the acquisition of the Cripple Creek & Victor mine in Colorado from AngloGold Ashanti Limited, which was announced on June 8, 2015.  The purchase price agreed was $820, subject to customary adjustments, plus a 2.5% net smelter return royalty from potential future underground ore. The Company expects to complete the acquisition in the third quarter of 2015.

 

Certain amounts in prior years have been reclassified to conform to the 2015 presentation and were not material to the financial statements.

NOTE 2     SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

Risks and Uncertainties

 

As a global mining company, our revenue, profitability and future rate of growth are substantially dependent on prevailing prices for gold, copper and, to a lesser extent, silver. Historically, the commodity markets have been very volatile, and there can be no assurance that commodity prices will not be subject to wide fluctuations in the future. A substantial or extended decline in commodity prices could have a material adverse effect on our financial position, results of operations, cash flows, access to capital and on the quantities of reserves that we can economically produce. The carrying value of our property, plant and mine development assets, inventories, stockpiles and ore on leach pads, and deferred tax assets are particularly sensitive to the outlook for commodity prices. A decline in our long term price outlook from current levels could result in material impairment charges related to these assets.

 

In September 2014, PT Newmont Nusa Tenggara (“PTNNT”) and the Government of Indonesia signed a Memorandum of Understanding (“MoU”) that resulted in PTNNT receiving a six-month permit to export copper concentrate from the Batu Hijau mine (“Batu Hijau”) that expired in mid-March 2015. On March 30, 2015, the Company received a six-month permit extension to export copper concentrate that expires in late September 2015. Effective with the signing of the MoU, PTNNT agreed to pay certain export duties and royalties. The MoU also outlines terms for the six main elements of the Contract of Work renegotiation, which will be incorporated into an amendment of the Contract of Work. The six areas are: concession area size; royalties, taxes and export duties; domestic processing and refining; ownership divestment; utilization of local manpower, domestic goods and services; and duration of the Contract of Work. Negotiations between PTNNT and the Government of Indonesia to amend the Contract of Work remain on-going. No assurances can be made at this time with respect to the outcome of such negotiations and expiration of the export permit without its renewal may negatively impact future operations and financial results at Batu Hijau. As a result of the on-going Contract of Work renegotiations at Batu Hijau, we have evaluated, and will continue to evaluate, the need for asset impairments, inventory write-downs, tax valuation allowances and other applicable accounting charges due to the

5


 

Table of Contents

NEWMONT MINING CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

(dollars in millions, except per share, per ounce and per pound amounts)

status of the mine. The total assets at Batu Hijau as of June 30, 2015 and December 31, 2014 were $3,367 and $3,107, respectively.

 

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates.

 

Recently Adopted Accounting Pronouncements

 

Stock-based compensation

 

In June 2014, the Financial Accounting Services Board (“FASB”) issued Accounting Standards Update (“ASU”) guidance to resolve the diversity of practice relating to the accounting for stock-based performance awards that the performance target could be achieved after the employee completes the required service period. The update is effective prospectively or retrospectively beginning January 1, 2015. Adoption of the new guidance, effective for the fiscal year beginning January 1, 2015, had no impact on the consolidated financial position, results of operations or cash flows.

 

Recently Issued Accounting Pronouncements

 

Debt issuance costs

 

In April 2015, ASU guidance was issued related to debt issuance costs. This update simplifies the presentation of debt issuance costs by requiring debt issuance costs to be presented as a deduction from the corresponding debt liability. The update is effective in fiscal years, including interim periods, beginning after December 15, 2015, and early adoption is permitted. The Company is currently evaluating this guidance and the impact it will have on the consolidated financial position, results of operations or cash flows.

 

Consolidations

 

In February 2015, ASU guidance was issued related to consolidations. This update makes some targeted changes to current consolidation guidance and impacts both the voting and the variable interest consolidation models. In particular, the update will change how companies determine whether limited partnerships or similar entities are variable interest entities. The update is effective in fiscal years, including interim periods, beginning after December 15, 2016, and early adoption is permitted. We currently consolidate certain variable interest entities and we do not expect the updated guidance to have an impact on the consolidated financial position, results of operations or cash flows.

 

Revenue Recognition

 

In May 2014, ASU guidance was issued related to revenue from contracts with customers. The new standard provides a five-step approach to be applied to all contracts with customers and also requires expanded disclosures about revenue recognition. The ASU is effective for annual reporting periods beginning after December 15, 2017, including interim periods and is to be retrospectively applied. Early adoption is not permitted. The Company is currently evaluating this guidance and the impact it will have on the consolidated financial position, results of operations or cash flows.

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Table of Contents

NEWMONT MINING CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

(dollars in millions, except per share, per ounce and per pound amounts)

NOTE 3    SEGMENT INFORMATION

 

The Company’s reportable segments are based upon the Company’s management structure that is focused on the geographic region for the Company’s operations. In the first quarter of 2015, the Australia/New Zealand and Indonesia geographic regions were combined into one Asia Pacific geographic region. Geographic regions include North America, South America, Asia Pacific, Africa, and Corporate and Other.

 

On June 5, 2015, the Company entered into an agreement with OceanaGold Corporation to sell its Waihi mine in New Zealand for approximately $101. As of June 30, 2015, total assets and total liabilities were $125 and $49, respectively.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  

 

  

Costs

 

Depreciation

 

Advanced

  

PreTax

  

 

 

 

 

Applicable

 

and

 

Projects and

 

Income

 

 

    

Sales

    

to Sales

    

Amortization

    

Exploration

    

(Loss)

 

Three Months Ended June 30, 2015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Carlin

    

$

243

 

$

186

 

$

46

 

$

4

 

$

3

 

Phoenix:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gold

 

 

50

 

 

32

 

 

8

 

 

 

 

 

 

 

Copper

 

 

24

 

 

17

 

 

3

 

 

 

 

 

 

 

Total Phoenix

 

 

74

 

 

49

 

 

11

 

 

1

 

 

9

 

Twin Creeks

 

 

150

 

 

65

 

 

12

 

 

3

 

 

68

 

Other North America

 

 

 —

 

 

 —

 

 

 —

 

 

7

 

 

(6)

 

North America

 

 

467

 

 

300

 

 

69

 

 

15

 

 

74

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Yanacocha

 

 

242

 

 

128

 

 

66

 

 

8

 

 

20

 

Other South America

 

 

 —

 

 

 —

 

 

2

 

 

12

 

 

(16)

 

South America

 

 

242

 

 

128

 

 

68

 

 

20

 

 

4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Boddington:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gold

 

 

202

 

 

122

 

 

24

 

 

 

 

 

 

 

Copper

 

 

41

 

 

29

 

 

5

 

 

 

 

 

 

 

Total Boddington

 

 

243

 

 

151

 

 

29

 

 

 —

 

 

51

 

Tanami

 

 

138

 

 

59

 

 

22

 

 

2

 

 

53

 

Waihi

 

 

39

 

 

17

 

 

3

 

 

1

 

 

14

 

Kalgoorlie

 

 

100

 

 

78

 

 

6

 

 

1

 

 

13

 

Batu Hijau:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gold

 

 

178

 

 

72

 

 

14

 

 

 

 

 

 

 

Copper

 

 

269

 

 

121

 

 

21

 

 

 

 

 

 

 

Total Batu Hijau

 

 

447

 

 

193

 

 

35

 

 

4

 

 

202

 

Other Asia Pacific

 

 

 —

 

 

 —

 

 

4

 

 

1

 

 

(12)

 

Asia Pacific

 

 

967

 

 

498

 

 

99

 

 

9

 

 

321

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ahafo

 

 

87

 

 

43

 

 

13

 

 

5

 

 

22

 

Akyem

 

 

145

 

 

50

 

 

24

 

 

4

 

 

63

 

Other Africa

 

 

 —

 

 

 —

 

 

 —

 

 

1

 

 

 —

 

Africa

 

 

232

 

 

93

 

 

37

 

 

10

 

 

85

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate and Other

 

 

 —

 

 

 —

 

 

3

 

 

27

 

 

(186)

 

Consolidated

 

$

1,908

 

$

1,019

 

$

276

 

$

81

 

$

298

 

 

 

7


 

Table of Contents

NEWMONT MINING CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

(dollars in millions, except per share, per ounce and per pound amounts)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  

 

  

Costs

 

Depreciation

 

Advanced

  

PreTax

  

 

 

 

 

Applicable

 

and

 

Projects and

 

Income

 

 

    

Sales

    

to Sales

    

Amortization

    

Exploration

    

(Loss)

 

Three Months Ended June 30, 2014

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Carlin

    

$

268

 

$

209

 

$

43

 

$

7

 

$

3

 

Phoenix:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gold

 

 

72

 

 

35

 

 

9

 

 

 

 

 

 

 

Copper

 

 

39

 

 

30

 

 

5

 

 

 

 

 

 

 

Total Phoenix

 

 

111

 

 

65

 

 

14

 

 

 —

 

 

30

 

Twin Creeks

 

 

125

 

 

49

 

 

9

 

 

3

 

 

62

 

La Herradura (1)

 

 

59

 

 

26

 

 

10

 

 

2

 

 

20

 

Other North America

 

 

 —

 

 

 —

 

 

 —

 

 

6

 

 

(7)

 

North America

 

 

563

 

 

349

 

 

76

 

 

18

 

 

108

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Yanacocha

 

 

240

 

 

184

 

 

84

 

 

9

 

 

(53)

 

Other South America

 

 

 —

 

 

 —

 

 

 —

 

 

9

 

 

(24)

 

South America

 

 

240

 

 

184

 

 

84

 

 

18

 

 

(77)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Boddington:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gold

 

 

190

 

 

133

 

 

24

 

 

 

 

 

 

 

Copper

 

 

38

 

 

32

 

 

6

 

 

 

 

 

 

 

Total Boddington

 

 

228

 

 

165

 

 

30

 

 

 —

 

 

27

 

Tanami

 

 

119

 

 

63

 

 

18

 

 

4

 

 

33

 

Jundee (2)

 

 

97

 

 

43

 

 

17

 

 

 —

 

 

37

 

Waihi

 

 

52

 

 

19

 

 

7

 

 

1

 

 

24

 

Kalgoorlie

 

 

96

 

 

65

 

 

4

 

 

2

 

 

22

 

Batu Hijau:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gold

 

 

10

 

 

9

 

 

3

 

 

 

 

 

 

 

Copper

 

 

59

 

 

54

 

 

17

 

 

 

 

 

 

 

Total Batu Hijau

 

 

69

 

 

63

 

 

20

 

 

1

 

 

(33)

 

Other Asia Pacific

 

 

 —

 

 

 —

 

 

5

 

 

1

 

 

(14)

 

Asia Pacific

 

 

661

 

 

418

 

 

101

 

 

9

 

 

96

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ahafo

 

 

156

 

 

65

 

 

17

 

 

5

 

 

71

 

Akyem

 

 

145

 

 

44

 

 

21

 

 

 —

 

 

74

 

Other Africa

 

 

 —

 

 

 —

 

 

 —

 

 

3

 

 

(5)

 

Africa

 

 

301

 

 

109

 

 

38

 

 

8

 

 

140

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate and Other

 

 

 —

 

 

 —

 

 

7

 

 

30

 

 

(175)

 

Consolidated

 

$

1,765

 

$

1,060

 

$

306

 

$

83

 

$

92

 

 


(1)

On October 6, 2014, the Company sold its 44% interest in La Herradura.

(2)

The Jundee mine was sold July 1, 2014.

 

 

8


 

Table of Contents

NEWMONT MINING CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

(dollars in millions, except per share, per ounce and per pound amounts)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  

 

  

Costs

 

Depreciation

 

Advanced

  

Pre‑Tax

  

 

  

 

 

 

 

Applicable

 

and

 

Projects and

 

Income

 

Capital

 

 

    

Sales

    

to Sales

    

Amortization

    

Exploration

    

(Loss)

    

Expenditures(1)