10-Q 1 nem-20180630x10q.htm 10-Q nem_Q2_Q3_Current folio_10Q

 

 

 

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, 2018

 

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

 


 

C:\Users\02015832\Desktop\Corporate_3CLR_POS_jpg.jpg

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, a smaller reporting company, or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth 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

 

 

 

 

Emerging growth company

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐ 

 

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 533,398,733 shares of common stock outstanding on July 19, 2018.

 

 

 


 

TABLE OF CONTENTS

 

 

 

 

Page

 

 

PART I – FINANCIAL INFORMATION

 

 

SECOND QUARTER 2018 RESULTS AND HIGHLIGHTS 

 

 1

ITEM 1. 

 

FINANCIAL STATEMENTS

 

3

 

 

Condensed Consolidated Statements of Operations

 

3

 

 

Condensed Consolidated Statements of Comprehensive Income (Loss) 

 

4

 

 

Condensed Consolidated Statements of Cash Flows

 

5

 

 

Condensed Consolidated Balance Sheets

 

6

 

 

Condensed Consolidated Statements of Changes in Equity

 

7

 

 

Notes to Condensed Consolidated Financial Statements

 

8

ITEM 2. 

 

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

 

52

 

 

Overview

 

52

 

 

Consolidated Financial Results

 

52

 

 

Results of Consolidated Operations

 

58

 

 

Foreign Currency Exchange Rates

 

65

 

 

Liquidity and Capital Resources

 

66

 

 

Environmental

 

68

 

 

Accounting Developments

 

68

 

 

Non-GAAP Financial Measures

 

68

 

 

Safe Harbor Statement

 

78

ITEM 3. 

 

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

 

80

ITEM 4. 

 

CONTROLS AND PROCEDURES

 

82

 

 

PART II – OTHER INFORMATION

 

 

ITEM 1. 

 

LEGAL PROCEEDINGS

 

83

ITEM 1A. 

 

RISK FACTORS

 

83

ITEM 2. 

 

UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

 

83

ITEM 3. 

 

DEFAULTS UPON SENIOR SECURITIES

 

83

ITEM 4. 

 

MINE SAFETY DISCLOSURES

 

83

ITEM 5. 

 

OTHER INFORMATION

 

84

ITEM 6. 

 

EXHIBITS

 

84

SIGNATURES 

 

85

 

 

 

 


 

NEWMONT MINING CORPORATION

SECOND QUARTER 2018 RESULTS AND HIGHLIGHTS

(unaudited, in millions, except per share, per ounce and per pound)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended June 30, 

 

Six Months Ended June 30, 

 

 

    

2018

    

2017

    

2018

    

2017

 

Financial Results:

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales

 

$

1,662

 

$

1,875

 

$

3,479

 

$

3,565

 

Gold

 

$

1,581

 

$

1,799

 

$

3,320

 

$

3,418

 

Copper

 

$

81

 

$

76

 

$

159

 

$

147

 

Costs applicable to sales (1)

 

$

965

 

$

999

 

$

1,994

 

$

1,956

 

Gold

 

$

919

 

$

955

 

$

1,901

 

$

1,873

 

Copper

 

$

46

 

$

44

 

$

93

 

$

83

 

Net income (loss) from continuing operations 

 

$

280

 

$

166

 

$

449

 

$

247

 

Net income (loss) 

 

$

298

 

$

151

 

$

489

 

$

209

 

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

 

$

274

 

$

190

 

$

444

 

$

260

 

Per common share, diluted:

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

$

0.51

 

$

0.36

 

$

0.83

 

$

0.49

 

Net income (loss) attributable to Newmont stockholders

 

$

0.54

 

$

0.33

 

$

0.90

 

$

0.42

 

Adjusted net income (loss) (2)

 

$

144

 

$

248

 

$

329

 

$

384

 

Adjusted net income (loss) per share, diluted (2)

 

$

0.26

 

$

0.46

 

$

0.61

 

$

0.72

 

Earnings before interest, taxes and depreciation and amortization (2)

 

$

633

 

$

709

 

$

1,270

 

$

1,270

 

Adjusted earnings before interest, taxes and depreciation and amortization (2)

 

$

545

 

$

699

 

$

1,189

 

$

1,273

 

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

 

 

 

 

 

 

 

$

667

 

$

902

 

Free Cash Flow (2)

 

 

 

 

 

 

 

$

178

 

$

539

 

Cash dividends declared per common share

 

$

0.14

 

$

0.05

 

$

0.28

 

$

0.10

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Results:

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated gold ounces (thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

Produced

 

 

1,242

 

 

1,440

 

 

2,528

 

 

2,767

 

Sold

 

 

1,224

 

 

1,439

 

 

2,536

 

 

2,767

 

Attributable gold ounces (thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

Produced

 

 

1,162

 

 

1,352

 

 

2,371

 

 

2,586

 

Sold

 

 

1,147

 

 

1,350

 

 

2,378

 

 

2,579

 

Consolidated and attributable copper pounds (millions):

 

 

 

 

 

 

 

 

 

 

 

 

 

Produced

 

 

31

 

 

31

 

 

57

 

 

60

 

Sold

 

 

27

 

 

32

 

 

54

 

 

58

 

Average realized price:

 

 

 

 

 

 

 

 

 

 

 

 

 

Gold (per ounce) 

 

$

1,292

 

$

1,250

 

$

1,310

 

$

1,235

 

Copper (per pound) 

 

$

2.99

 

$

2.46

 

$

2.93

 

$

2.56

 

Consolidated costs applicable to sales: (1)(2)

 

 

 

 

 

 

 

 

 

 

 

 

 

Gold (per ounce) 

 

$

751

 

$

664

 

$

750

 

$

677

 

Copper (per pound) 

 

$

1.70

 

$

1.38

 

$

1.72

 

$

1.43

 

All-in sustaining costs: (2)

 

 

 

 

 

 

 

 

 

 

 

 

 

Gold (per ounce) 

 

$

1,024

 

$

883

 

$

998

 

$

891

 

Copper (per pound) 

 

$

2.05

 

$

1.69

 

$

2.06

 

$

1.72

 


(1)

Excludes Depreciation and amortization and Reclamation and remediation.

(2)

See “Non-GAAP Financial Measures” beginning on page 68.  

1


 

 

Second Quarter 2018 Highlights

·

Net income (loss): Delivered Net income (loss) from continuing operations attributable to Newmont stockholders of $274 or $0.51 per diluted share, an increase of $84 from the prior-year quarter, primarily due to lower income taxes, a gain from the sale of the Company’s royalty portfolio in June 2018 and higher average realized prices, partially offset by lower production at CC&V, Boddington, Akyem and Twin Creeks. 

·

Adjusted net income (loss): Delivered Adjusted net income (loss) of $144 or $0.26 per diluted share, a 43% decrease from the prior-year quarter (See “Non-GAAP Financial Measures” beginning on page 68).

·

Adjusted EBITDA: Generated $545 in Adjusted EBITDA, a 22% decrease from the prior-year quarter (See “Non-GAAP Financial Measures” beginning on page 68).

·

Cash Flow:  Reported Net cash provided by (used in) operating activities of continuing operations of $667 for the six months ended June 30, 2018, a 26% decrease from the prior year, and free cash flow of $178 (See “Non-GAAP Financial Measures” beginning on page 68).

·

Portfolio improvements: Agreement to acquire 50% ownership interest in Galore Creek from NovaGold, partnering with Teck Resources Limited; completed Twin Underground and Northwest Exodus projects in Nevada; advanced the Akyem Underground project to prefeasibility study in Africa; welcomed Sumitomo Corporation as a new 5% partner at Yanacocha in Peru; and divested royalty portfolio forming a strategic partnership with Maverix Metals.

·

Attributable gold production: Decreased 14% to 1.16 million ounces primarily from lower grades at Carlin, Twin Creeks, Boddington and Akyem and a build of CC&V concentrate inventory to be processed in Nevada.

·

Financial strength: Ended the quarter with $3.1 billion cash on hand and net debt under $1.0 billion; an industry-leading balance sheet with investment-grade credit profile; and a quarterly dividend declared of $0.14 per share, an increase of 87% over the prior-year quarter. 

 

Our global project pipeline

Newmont’s capital-efficient project pipeline supports stable production with improving margins and mine life. Near-term development capital projects and those recently completed are presented below. Funding for Subika Underground, Ahafo Mill Expansion, Twin Underground, Quecher Main and Tanami Power projects has been approved and these projects are in execution.

Subika Underground, Africa. This project leverages existing infrastructure and an optimized approach to develop Ahafo’s most promising underground resource. First production was achieved in June 2017 with commercial production expected in the fourth quarter of 2018. The project is expected to have an average annual gold production of between 150,000 and 200,000 ounces per year for the first five years beginning in 2019 with an initial mine life of approximately 11 years. Development capital costs (excluding capitalized interest) since approval were $130, of which $24 related to the second quarter of 2018.

Ahafo Mill Expansion, Africa. This project is designed to maximize resource value by improving production margins and accelerating stockpile processing. The project also supports profitable development of Ahafo’s highly prospective underground resources. The expansion is expected to have an average annual gold production of between 75,000 and 100,000 ounces per year for the first five years beginning in 2020. Development capital costs (excluding capitalized interest) since approval were $83, of which $21 related to the second quarter of 2018. A tragic construction accident occurred in April which resulted in six fatalities. We continue to work with the government of Ghana for a safe restart in August. The delay will shift first gold into the second half of 2019, while commercial production remains in the second half of 2019.

Twin Underground, North America. This project is a portal mine beneath Twin Creek’s Vista surface mine with similar mineralization. First production was achieved in August 2017, and commercial production was declared in July 2018. The expansion will add between 30,000 and 40,000 ounces of gold per year between 2018 and 2022. The project was completed on schedule for $42.

Quecher Main, South America. This project will add oxide production at Yanacocha, leverage existing infrastructure and enable potential future growth at Yanacocha. First production is expected in late 2018 with commercial production in the second half of 2019. Quecher Main extends the life of the Yanacocha operation to 2027 with average annual gold production of about 200,000 ounces per year (on a consolidated basis) between 2020 and 2025. Development capital costs (excluding capitalized interest) since approval were $41, of which $20 related to the second quarter of 2018.

Tanami Power, Australia. This project will lower power costs beginning in 2019, mitigate fuel supply risk and reduce carbon emissions. The project includes a 450 kilometer natural gas pipeline to be constructed connecting the Tanami site to the Amadeus Gas Pipeline, and construction and operation of two on-site power stations. The gas supply, gas transmission and power purchase agreements are for a ten year term with options to extend.

We manage our wider project portfolio to maintain flexibility to address the development risks associated with our projects including permitting, local community and government support, engineering and procurement availability, technical issues, escalating costs and other associated risks that could adversely impact the timing and costs of certain opportunities.    

 

2


 

PART I—FINANCIAL INFORMATION

ITEM 1.FINANCIAL STATEMENTS.

NEWMONT MINING CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited, in millions except per share)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended June 30, 

 

Six Months Ended June 30, 

 

 

    

2018

    

2017

    

2018

    

2017

  

Sales (Note 4)

 

$

1,662

 

$

1,875

 

$

3,479

 

$

3,565

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Costs and expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

Costs applicable to sales (1) 

 

 

965

 

 

999

 

 

1,994

 

 

1,956

 

Depreciation and amortization

 

 

279

 

 

310

 

 

580

 

 

610

 

Reclamation and remediation (Note 5)

 

 

37

 

 

43

 

 

65

 

 

72

 

Exploration 

 

 

54

 

 

51

 

 

94

 

 

87

 

Advanced projects, research and development

 

 

36

 

 

32

 

 

70

 

 

58

 

General and administrative 

 

 

63

 

 

58

 

 

122

 

 

113

 

Other expense, net (Note 6)

 

 

13

 

 

14

 

 

24

 

 

31

 

 

 

 

1,447

 

 

1,507

 

 

2,949

 

 

2,927

 

Other income (expense):

 

 

 

 

 

 

 

 

 

 

 

 

 

Other income, net (Note 7)

 

 

139

 

 

31

 

 

160

 

 

22

 

Interest expense, net of capitalized interest

 

 

(49)

 

 

(64)

 

 

(102)

 

 

(131)

 

 

 

 

90

 

 

(33)

 

 

58

 

 

(109)

 

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

 

 

305

 

 

335

 

 

588

 

 

529

 

Income and mining tax benefit (expense) (Note 8)

 

 

(18)

 

 

(166)

 

 

(123)

 

 

(277)

 

Equity income (loss) of affiliates

 

 

(7)

 

 

(3)

 

 

(16)

 

 

(5)

 

Net income (loss) from continuing operations 

 

 

280

 

 

166

 

 

449

 

 

247

 

Net income (loss) from discontinued operations (Note 9)

 

 

18

 

 

(15)

 

 

40

 

 

(38)

 

Net income (loss)

 

 

298

 

 

151

 

 

489

 

 

209

 

Net loss (income) attributable to noncontrolling interests  (Note 10)

 

 

(6)

 

 

24

 

 

(5)

 

 

13

 

Net income (loss) attributable to Newmont stockholders 

 

$

292

 

$

175

 

$

484

 

$

222

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) attributable to Newmont stockholders:

 

 

 

 

 

 

 

 

 

 

 

 

 

Continuing operations 

 

$

274

 

$

190

 

$

444

 

$

260

 

Discontinued operations 

 

 

18

 

 

(15)

 

 

40

 

 

(38)

 

 

 

$

292

 

$

175

 

$

484

 

$

222

 

Net income (loss) per common share (Note 11):

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic:

 

 

 

 

 

 

 

 

 

 

 

 

 

Continuing operations 

 

$

0.52

 

$

0.36

 

$

0.84

 

$

0.49

 

Discontinued operations 

 

 

0.03

 

 

(0.03)

 

 

0.07

 

 

(0.07)

 

 

 

$

0.55

 

$

0.33

 

$

0.91

 

$

0.42

 

Diluted:

 

 

 

 

 

 

 

 

 

 

 

 

 

Continuing operations 

 

$

0.51

 

$

0.36

 

$

0.83

 

$

0.49

 

Discontinued operations 

 

 

0.03

 

 

(0.03)

 

 

0.07

 

 

(0.07)

 

 

 

$

0.54

 

$

0.33

 

$

0.90

 

$

0.42

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash dividends declared per common share 

 

$

0.14

 

$

0.05

 

$

0.28

 

$

0.10

 


(1)

Excludes Depreciation and amortization and Reclamation and remediation.

The accompanying notes are an integral part of the Condensed Consolidated Financial Statements.

3


 

NEWMONT MINING CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(unaudited, in millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended June 30, 

 

Six Months Ended June 30, 

 

 

    

2018

    

2017

    

2018

    

2017

    

Net income (loss)

 

$

298

  

$

151

    

$

489

 

$

209

 

Other comprehensive income (loss):

 

 

 

 

 

 

 

 

 

 

 

 

 

Change in marketable securities, net of tax of $-, $-, $- and $-, respectively

 

 

(1)

 

 

(4)

 

 

 1

 

 

(11)

 

Foreign currency translation adjustments 

 

 

(1)

 

 

 —

 

 

(4)

 

 

 4

 

Change in pension and other post-retirement benefits, net of tax of $(2), $(1), $(3) and $(5), respectively

 

 

 4

 

 

 3

 

 

 9

 

 

 9

 

Change in fair value of cash flow hedge instruments, net of tax of $(2), $(3), $(3) and $(7), respectively

 

 

 5

 

 

 5

 

 

 9

 

 

14

 

Other comprehensive income (loss)

 

 

 7

 

 

 4

 

$

15

 

$

16

 

Comprehensive income (loss)

 

$

305

 

$

155

 

$

504

 

$

225

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Comprehensive income (loss) attributable to:

 

 

 

 

 

 

 

 

 

 

 

 

 

Newmont stockholders 

 

$

299

 

$

179

 

$

499

 

$

238

 

Noncontrolling interests

 

 

 6

 

 

(24)

 

 

 5

 

 

(13)

 

 

 

$

305

 

$

155

 

$

504

 

$

225

 

 

The accompanying notes are an integral part of the Condensed Consolidated Financial Statements.

4


 

NEWMONT MINING CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS 

(unaudited, in millions)

 

 

 

 

 

 

 

 

 

 

Six Months Ended June 30, 

 

 

    

2018

    

2017

 

Operating activities:

 

 

 

  

 

 

 

Net income (loss)

    

$

489

  

$

209

 

Adjustments:

 

 

 

  

 

 

 

Depreciation and amortization

 

 

580

  

 

610

 

Stock-based compensation (Note 13)

 

 

38

 

 

35

 

Reclamation and remediation

 

 

61

 

 

68

 

Loss (income) from discontinued operations (Note 9)

 

 

(40)

 

 

38

 

Deferred income taxes 

 

 

(19)

  

 

76

 

Gain on asset and investment sales, net

 

 

(99)

 

 

(16)

 

Write-downs of inventory and stockpiles and ore on leach pads

 

 

158

 

 

92

 

Other operating adjustments

 

 

 9

 

 

58

 

Net change in operating assets and liabilities (Note 23)

 

 

(510)

  

 

(268)

 

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

 

 

667

  

 

902

 

Net cash provided by (used in) operating activities of discontinued operations (1)

 

 

(5)

  

 

(9)

 

Net cash provided by (used in) operating activities

 

 

662

  

 

893

 

 

 

 

 

 

 

 

 

Investing activities:

 

 

 

  

 

 

 

Additions to property, plant and mine development 

 

 

(489)

  

 

(363)

 

Acquisitions, net

 

 

(39)

  

 

 —

 

Proceeds from sales of investments

 

 

15

 

 

19

 

Purchases of investments

 

 

(6)

 

 

(113)

 

Other 

 

 

 2

  

 

17

 

Net cash provided by (used in) investing activities 

 

 

(517)

  

 

(440)

 

 

 

 

 

 

 

 

 

Financing activities:

 

 

 

  

 

 

 

Dividends paid to common stockholders 

 

 

(150)

  

 

(54)

 

Repurchase of common stock

 

 

(70)

 

 

 —

 

Distributions to noncontrolling interests

 

 

(69)

 

 

(80)

 

Funding from noncontrolling interests

 

 

52

 

 

46

 

Proceeds from sale of noncontrolling interests

 

 

48

 

 

 —

 

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

 

 

(39)

 

 

(13)

 

Other

 

 

(3)

 

 

(6)

 

Net cash provided by (used in) financing activities

 

 

(231)

 

 

(107)

 

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

 

 

(2)

  

 

 2

 

Net change in cash, cash equivalents and restricted cash

 

 

(88)

 

 

348

 

Cash, cash equivalents and restricted cash at beginning of period 

 

 

3,298

  

 

2,782

 

Cash, cash equivalents and restricted cash at end of period 

 

$

3,210

  

$

3,130

 

 

 

 

 

 

 

 

 

Reconciliation of cash, cash equivalents and restricted cash:

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

3,127

 

$

3,105

 

Restricted cash included in Other current assets

 

 

 1

 

 

 2

 

Restricted cash included in Other noncurrent assets

 

 

82

 

 

23

 

Total cash, cash equivalents and restricted cash

 

$

3,210

 

$

3,130

 


(1)

Net cash provided by (used in) operating activities of discontinued operations includes $(5) and $(6) related to the Holt royalty obligation and $- and $(3) related to closing costs for the sale of Batu Hijau, all of which were paid out of Cash and cash equivalents held for use for the six months ended June 30, 2018 and 2017, respectively. For additional information regarding the Company’s discontinued operations, see Note 9.

The accompanying notes are an integral part of the Condensed Consolidated Financial Statements.

5


 

NEWMONT MINING CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS 

(unaudited, in millions)

 

 

 

 

 

 

 

 

 

 

   At June 30,    

 

At December 31, 

 

 

    

2018

    

2017

 

ASSETS

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

3,127

 

$

3,259

 

Trade receivables (Note 4)

 

 

133

 

 

124

 

Other accounts receivables

 

 

101

 

 

113

 

Investments (Note 16)

 

 

56

 

 

62

 

Inventories (Note 17)

 

 

697

 

 

679

 

Stockpiles and ore on leach pads (Note 18)

 

 

711

 

 

676

 

Other current assets

 

 

142

 

 

153

 

Current assets

 

 

4,967

 

 

5,066

 

Property, plant and mine development, net

 

 

12,351

 

 

12,338

 

Investments (Note 16)

 

 

353

 

 

280

 

Stockpiles and ore on leach pads (Note 18)

 

 

1,837

 

 

1,848

 

Deferred income tax assets

 

 

537

 

 

549

 

Other non-current assets

 

 

610

 

 

565

 

Total assets

 

$

20,655

 

$

20,646

 

 

 

 

 

 

 

 

 

LIABILITIES

 

 

 

 

 

 

 

Lease and other financing obligations (Note 20)

 

$

13

 

$

 4

 

Accounts payable

 

 

360

 

 

375

 

Employee-related benefits

 

 

240

 

 

309

 

Income and mining taxes payable

 

 

71

 

 

248

 

Other current liabilities (Note 21)

 

 

396

 

 

462

 

Current liabilities

 

 

1,080

 

 

1,398

 

Debt (Note 19)

 

 

4,042

 

 

4,040

 

Lease and other financing obligations (Note 20)

 

 

66

 

 

21

 

Reclamation and remediation liabilities (Note 5)

 

 

2,369

 

 

2,345

 

Deferred income tax liabilities

 

 

589

 

 

595

 

Employee-related benefits

 

 

392

 

 

386

 

Other non-current liabilities (Note 21)

 

 

284

 

 

342

 

Total liabilities

 

 

8,822

 

 

9,127

 

 

 

 

 

 

 

 

 

Contingently redeemable noncontrolling interest (Note 10)

 

 

48

 

 

 —

 

 

 

 

 

 

 

 

 

EQUITY

 

 

 

 

 

 

 

Common stock

 

 

857

 

 

855

 

Treasury stock

 

 

(69)

 

 

(30)

 

Additional paid-in capital

 

 

9,595

 

 

9,592

 

Accumulated other comprehensive income (loss) (Note 22)

 

 

(162)

 

 

(292)

 

Retained earnings

 

 

592

 

 

410

 

Newmont stockholders' equity

 

 

10,813

 

 

10,535

 

Noncontrolling interests

 

 

972

 

 

984

 

Total equity

 

 

11,785

 

 

11,519

 

Total liabilities and equity

 

$

20,655

 

$

20,646

 

 

The accompanying notes are an integral part of the Condensed Consolidated Financial Statements.

 

 

 

6


 

 

NEWMONT MINING CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

(unaudited, in millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accumulated

 

 

 

 

 

 

 

 

 

 

Contingently

 

 

 

 

 

 

 

 

 

 

 

 

 

Additional

 

Other

 

 

 

 

 

 

 

 

 

 

Redeemable

 

 

 

Common Stock

 

Treasury Stock

 

Paid-In

 

Comprehensive

 

Retained

 

Noncontrolling

 

Total

 

Noncontrolling

 

 

    

Shares

    

Amount

    

Shares

    

Amount

 

Capital

    

Income (Loss)

    

Earnings

    

Interests

    

Equity

 

Interest

 

 

 

(in millions)

 

 

 

 

Balance at December 31, 2017

 

534

 

$

855

 

(1)

 

$

(30)

 

$

9,592

 

$

(292)

 

$

410

 

$

984

 

$

11,519

 

$

 —

 

Cumulative-effect adjustment of adopting ASU No. 2016-01

 

 —

 

 

 —

 

 —

 

 

 —

 

 

 —

 

 

115

 

 

(115)

 

 

 —

 

 

 —

 

 

 —

 

Net income (loss)

 

 —

 

 

 —

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

484

 

 

 5

 

 

489

 

 

 —

 

Other comprehensive income (loss) 

 

 —

 

 

 —

 

 —

 

 

 —

 

 

 —

 

 

15

 

 

 —

 

 

 —

 

 

15

 

 

 —

 

Sale of noncontrolling interest

 

 —

 

 

 —

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

48