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Newmont Reports Third Quarter 2023 Results and Declares $0.40 Dividend; Remains on Track to Close the Pending Acquisition of Newcrest

Newmont Corporation (NYSE: NEM, TSX: NGT) (Newmont or the Company) today announced third quarter 2023 results and declared a third quarter dividend of $0.40 per share.

Newmont Delivered a Stable Q3 Performance

  • Produced 1.3 million attributable gold ounces and 58 thousand co-product gold equivalent ounces (GEOs)* from copper; building momentum for improved production in the fourth quarter
  • Reported gold Costs Applicable to Sales (CAS) per ounce** of $1,019 and gold All-In Sustaining Costs (AISC) per ounce** of $1,426; improvement driven by higher sales volumes compared to the prior quarter
  • Revised 2023 outlook for the standalone Newmont portfolio to 5.3 million ounces of attributable production, CAS per ounce** of $1,000 and AISC per ounce** of $1,400; incorporates the impacts of the strike at Peñasquito, and lower production volumes from non-managed joint ventures (Nevada Gold Mines and Pueblo Viejo) and Ahafo***
  • Generated $1.0 billion of cash from continuing operations and reported $397 million of Free Cash Flow**; driven by favorable working capital changes, while continuing to reinvest in profitable projects
  • Reported Net Income of $163 million, with Adjusted Net Income (ANI)** of $0.36 per diluted share and Adjusted EBITDA** of $933 million; driven by higher production volumes, strong gold prices and stable costs
  • Ended the quarter with $3.2 billion of consolidated cash and $6.2 billion of liquidity; reported net debt to adjusted EBITDA ratio of 0.7x**
  • Resolved the Union labor strike at Peñasquito; focused on the safe ramp-up of operations in the fourth quarter
  • Received Full Funds approval for the Pamour project at Porcupine; on track to deliver first ore in 2024
  • Declared commercial production at San Marcos; the first of six ore bodies in Cerro Negro District Expansion 1
  • Assigned an A- rating with a stable outlook from Fitch; reflects Newmont’s ability to generate strong liquidity
  • On track to close the pending acquisition of Newcrest Mining Limited ("Newcrest") on November 6th; secured all government and regulatory approvals and shareholder votes
  • Announced the addition of two Directors; welcoming Philip Aiken AM and Sally-Anne Layman from the Newcrest Board, with appointment to the Newmont Board of Directors effective upon close of the pending Newcrest transaction

Third Quarter Dividend Declared Within Established Framework****

  • Board of Directors declared a dividend of $0.40 per share of common stock for the third quarter of 2023; payable on December 22, 2023 to holders of record at the close of business on November 30, 2023
  • Annualized dividend payout range for 2023 of $1.40 to $1.80 per share****; subject to quarterly approval by Board of Directors
  • Based on a sustainable base dividend of $1.00 per share payable at base reserves price and an incremental dividend payout of $0.60 per share; third quarter dividend payout calibrated at the mid-point of the $1,700 per ounce annualized payout range

"Newmont generated $1.0 billion of cash from continuing operations during the third quarter and continued to execute on our long-term strategic plan. As we look ahead to the closing of the Newcrest transaction, we are excited about the long-term value it will bring to both sets of stakeholders and our combined workforce. This transaction strengthens our position as the world's leading gold company and sets the standard in safe, profitable and responsible mining. We look forward to closing the transaction on November 6th and providing our first integration update on the combined business in the first quarter of 2024."

- Tom Palmer, Newmont President and Chief Executive Officer

*

 

Gold equivalent ounces (GEOs) calculated using Gold ($1,400/oz.), Copper ($3.50/lb.), Silver ($20.00/oz.), Lead ($1.00/lb.) and Zinc ($1.20/lb.) pricing for 2023.

**

 

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

***

 

See discussion of outlook and cautionary statement at the end of this release regarding forward-looking statements. Revised outlook excludes Newcrest Mining Limited.

****

 

Expectations regarding 2023 dividend levels are forward-looking statements. The dividend framework is non-binding and an annualized dividend has not been declared by the Board. The declaration and payment of future quarterly dividends remains at the discretion of the Board of Directors and will depend on the Company’s financial results, cash flow and cash requirements, future prospects, and other factors deemed relevant by the Board. See cautionary statement at the end of this release.

Summary of Third Quarter Results

 

Q3'23

Q2'23

Q1'23

Q3'22

Average realized gold price ($ per ounce)

$

1,920

$

1,965

$

1,906

 

$

1,691

 

Attributable gold production (million ounces)1

 

1.29

 

1.24

 

1.27

 

 

1.49

 

Gold costs applicable to sales (CAS) ($ per ounce)2

$

1,019

$

1,054

$

1,025

 

$

968

 

Gold all-in sustaining costs (AISC) ($ per ounce)2

$

1,426

$

1,472

$

1,376

 

$

1,271

 

GAAP net income (loss) from continuing operations ($ millions)

$

157

$

153

$

339

 

$

218

 

Adjusted net income ($ millions)3

$

286

$

266

$

320

 

$

212

 

Adjusted net income per share ($/diluted share)3

$

0.36

$

0.33

$

0.40

 

$

0.27

 

Adjusted EBITDA ($ millions)3

$

933

$

910

$

990

 

$

850

 

Cash flow from continuing operations ($ millions)

$

1,001

$

656

$

481

 

$

466

 

Capital expenditures ($ millions)4

$

604

$

616

$

526

 

$

529

 

Free cash flow ($ millions)5

$

397

$

40

$

(45

)

$

(63

)

IMPROVED PRODUCTION AND CASH FLOWS DELIVERED IN THE THIRD QUARTER

In the third quarter, Newmont delivered improved production compared to the second quarter, despite navigating challenges at the sites noted below. Further improvements to production are expected in the fourth quarter.

  • Peñasquito - Operations continued to be suspended at the site for the duration of the third quarter to focus on finding an appropriate and sustainable resolution to the dispute with the leadership of the National Union of Mine and Metal Workers of the Mexican Republic (“the Union”). On October 13, 2023, Newmont reached a resolution with the Union and has since begun the safe ramp-up of operations. Newmont expects to reach full operating capacity by the end of the fourth quarter.
  • Ahafo - During the third quarter, the replacement conveyor at Ahafo was commissioned as planned. However, mill throughput was impacted when routine condition monitoring by Newmont's Asset Management Team identified hairline fractures to one of the large grinding mill’s girth gears. To reduce any further deterioration to the gear and to avoid a major unplanned failure, Newmont made the decision to operate at less than full capacity. In October, the team optimized the processing circuit, bringing throughput to approximately 80 percent. Full processing rates are expected to be reached in the second quarter of 2024 when the girth gear is replaced.
  • Cerro Negro - The site delivered higher ounces in the third quarter due to improved productivity compared to the second quarter. This improvement was tempered by supply chain disruptions as a result of import restrictions which impacted the ability to deliver key supplies to the site. Newmont will continue to work closely with suppliers to mitigate disruption in Argentina.
  • Nevada Gold Mines and Pueblo Viejo6 - Lower than planned production was delivered from Newmont's non-managed joint ventures.

Direct operating costs remained largely consistent with the second quarter as inflation pressures continued to stabilize, with improvements to pricing on commodities, as well lower direct costs as a result of the suspension of operations at Peñasquito. AISC was lower due to lower sustaining capital during the third quarter compared to the second quarter. Peñasquito incurred $78 million of operating costs and $53 million of depreciation and amortization while operations were suspended. These costs have not been adjusted from Newmont's Non-GAAP financial metrics for the third quarter.

Cash flow from continuing operations was $1,001 million, which was favorable compared to the second quarter, primarily driven by favorable working capital changes, including the timing of accounts payable, draw-downs of lower cost inventory and lower cash tax payments. During the quarter, Newmont reinvested $604 million in capital spend, including $264 million in development capital spend to continue to progress near-term projects and $340 million in sustaining capital to progress site improvement projects.

THIRD QUARTER 2023 FINANCIAL AND PRODUCTION SUMMARY

Attributable gold production1 decreased 13 percent to 1,291 thousand ounces from the prior year quarter primarily due to lower production at Peñasquito, Akyem and Ahafo. In addition, lower than planned production was delivered from the non-managed joint venture at Pueblo Viejo. This unfavorable impact was partially offset by higher production at Yanacocha. Gold sales were largely in line with production for the quarter.

Gold CAS totaled $1.3 billion for the quarter. Gold CAS per ounce2 increased 5 percent to $1,019 per ounce from the prior year quarter primarily due to lower gold sales volumes as a result of the Peñasquito labor strike for the duration of the third quarter of 2023. This unfavorable impact was partially offset by lower energy, materials and contracted services costs at Peñasquito while operations were suspended.

Gold AISC per ounce2 increased 12 percent to $1,426 per ounce from the prior year quarter primarily due to higher CAS per gold ounce and higher sustaining capital spend.

Attributable gold equivalent ounce (GEO) production from other metals decreased 81 percent to 58 thousand ounces primarily due to the suspension of operations at Peñasquito, which were partially offset by higher copper production at Boddington. GEO sales were largely in line with production for the quarter.

CAS from other metals totaled $98 million for the quarter. CAS per GEO2 increased 130 percent to $1,636 per ounce from the prior year quarter primarily due to lower other metal sales as a result of the Peñasquito labor strike for the duration of the third quarter of 2023. This unfavorable impact was partially offset by lower energy, materials and contracted services costs at Peñasquito while operations were suspended.

AISC per GEO2 increased 142 percent to $2,422 per ounce primarily due to higher CAS per GEO as a result of the Peñasquito labor strike.

Average realized gold price was $1,920, an increase of $229 per ounce over the prior year quarter. Average realized gold price includes $1,929 per ounce of gross price received, an unfavorable impact of $4 per ounce mark-to-market on provisionally-priced sales and reductions of $5 per ounce for treatment and refining charges.

Revenue decreased 5 percent from the prior year quarter to $2.5 billion primarily due to lower sales volumes, partially offset by higher average realized gold and copper prices.

Net income from continuing operations attributable to Newmont stockholders was $157 million or $0.20 per diluted share, a decrease of $61 million from the prior year quarter primarily due to lower sales volumes as a result of the Peñasquito labor strike, as well as higher reclamation and remediation charges. These decreases were partially offset by higher average realized prices for gold and copper and lower CAS.

Adjusted net income3 was $286 million or $0.36 per diluted share, compared to $212 million or $0.27 per diluted share in the prior year quarter. Primary adjustments to third quarter net income include reclamation and remediation charges of $104 million, changes in the fair value of investments of $41 million, Newcrest transaction-related costs of $16 million and restructuring and severance costs of $7 million.

Adjusted EBITDA3 increased 10 percent to $933 million for the quarter, compared to $850 million for the prior year quarter.

Capital expenditures4 increased 14 percent from the prior year quarter to $604 million primarily due to higher sustaining capital spend. Development capital expenditures in 2023 primarily relate to Tanami Expansion 2, Ahafo North, Yanacocha Sulfides, Pamour and Cerro Negro District Expansion 1.

Consolidated operating cash flow from continuing operations increased 115 percent from the prior year quarter to $1,001 million primarily due to payments made in the third quarter of 2022 related to 2021 site performance for the Peñasquito Profit-Sharing Agreement, as well as the timing of accounts payable and prepaid taxes at Peñasquito, partially offset by a decrease in revenue due to lower sales volumes primarily as a result of the strike at Peñasquito.

Free Cash Flow5 increased to $397 million from $(63) million in the prior year quarter primarily due to higher operating cash flow, partially offset by higher capital expenditures.

Balance sheet and liquidity remained strong in the third quarter, ending the quarter with $3.2 billion of consolidated cash, with approximately $6.2 billion of total liquidity; reported net debt to adjusted EBITDA of 0.7x7.

Nevada Gold Mines (NGM)6 attributable gold production was 300 thousand ounces, with CAS of $992 per ounce2 and AISC of $1,307 per ounce2 for the third quarter. NGM EBITDA7 was $263 million.

Pueblo Viejo (PV)6 attributable gold production was 52 thousand ounces for the quarter. Cash distributions received for the Company's equity method investment in Pueblo Viejo totaled $32 million in the third quarter. Capital contributions of $23 million were made during the quarter related to the expansion project at Pueblo Viejo.

1

 

Attributable gold production includes 52 thousand ounces for the third quarter of 2023, 51 thousand ounces for the second quarter of 2023, and 60 thousand ounces for the first quarter of 2023 and 81 thousand ounces for the third quarter of 2022 from the Company’s equity method investment in Pueblo Viejo (40%).

2

 

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

3

 

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

4

 

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

5

 

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

6

 

Newmont has a 38.5% interest in Nevada Gold Mines in the U.S., which is accounted for using the proportionate consolidation method. In addition, Newmont has a 40% interest in Pueblo Viejo, which is accounted for as an equity method investment.

7

 

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

Progressing Profitable Near-Term Projects from Unmatched Organic Pipeline

Newmont’s project pipeline supports stable production with improving margins and mine lives1. Newmont's 2023 and longer-term outlook includes current development capital costs and production related to Tanami Expansion 2, Ahafo North, Pamour and Cerro Negro District Expansion 1. Development capital spend and all metal production for Yanacocha Sulfides has been excluded from longer-term outlook until an investment decision has been reached.

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 by extending 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, bringing average all-in sustaining costs to $900 to $1,000 per ounce for Tanami (2026-2030). Commercial production for the project is expected in the second half of 2025. Total capital costs are estimated to be between $1.2 and $1.3 billion. Development costs (excluding capitalized interest) since approval were $677 million, of which $178 million related to the nine months ended September 30, 2023.
  • 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 with all-in sustaining costs of $800 to $900 per ounce for the first five full years of production. Ahafo North is the best unmined gold deposit in West Africa with approximately 3.8 million ounces of Reserves and 1.4 million ounces of Measured, Indicated and Inferred Resources2 and significant upside potential to extend beyond Ahafo North’s current 13-year mine life. Commercial production for the project is expected in the second half of 2025. Total capital costs are estimated to be between $950 and $1,050 million. Development costs (excluding capitalized interest) since approval were $333 million, of which $121 million related to the nine months ended September 30, 2023.
  • Pamour (North America) extends the life of Porcupine and maintains production beyond 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 was reached in October of 2023, with first ore expected in 2024. Commercial production for the project is expected in the fourth quarter of 2025. Development capital costs are estimated to be 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 and provides a platform for further exploration and future growth through additional expansions. Development capital costs for the project are estimated to be between $350 and $450 million. In the third quarter of 2023 Newmont declared commercial production for San Marcos, the first of six ore bodies associated with the expansion project.
  • Yanacocha Sulfides (South America) has been deferred for at least two years from the previously planned investment decision date in 2024, representing the first step to Newmont delivering on its portfolio optimization strategy. Yanacocha Sulfides 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 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.

1

 

Project estimates remain subject to change based upon uncertainties, including future market conditions, macroeconomic and geopolitical conditions, changes in interest rates, 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.

2

 

Total resources presented for Ahafo North includes Measured and Indicated resources of 910 thousand gold ounces and Inferred resources of 490 thousand gold ounces. See cautionary statement at the end of this release.

Revised 2023 Outlook Incorporating the Resolution of the Peñasquito Strike

Newmont is providing a revised 2023 outlook for the standalone Newmont portfolio of 5.3 million ounces of attributable production to incorporate the impacts of the Peñasquito strike, lower production from the non-managed Nevada Gold Mines and Pueblo Viejo joint ventures, and lower production at Ahafo due to lower throughput following the decision to operate at less than full capacity to protect one of the grinding mill's girth gears until it is replaced. As a result of these volume impacts, 2023 CAS is expected to be approximately $1,000 per ounce, with AISC of $1,400 per ounce. In addition, as a result of the Peñasquito strike, the outlook for silver, lead and zinc has been revised for the remainder of the year.

Sustaining capital is expected to be $1.4 billion for 2023, incorporating increased spend from the upgrading of camp conditions at Musselwhite, the addition of five new autonomous haulage trucks at Boddington to advance stripping in the North and South Pits and the replacement conveyor at Ahafo. Development capital is expected to be $1.1 billion for 2023, incorporating reduced spend at Yanacocha Sulfides and the timing of spend at Tanami Expansion 2 as a result of the rainfall event in the first quarter.

Copper guidance for Boddington remains unchanged for the year. In addition, consolidated expense guidance remains unchanged, with the exception of Depreciation and Amortization as a result of the lower production volumes for the year.

Please see the cautionary statement at the end of this release for additional information. For further discussion, investors are encouraged to attend Newmont’s Third Quarter 2023 Earnings Conference Call.

Standalone Newmont 2023 Outlook a

2023E

Gold ($1,900/oz price assumption)

Attributable Gold Production (Moz) b

5.3

Gold CAS ($/oz)

$1,000

Gold AISC ($/oz) c

$1,400

Copper ($3.50/lb price assumption)

Copper Production (Mlb)

100

Copper CAS ($/lb)

$2.00

Copper AISC ($/lb) c

$2.50

Silver ($23.00/oz price assumption)

Silver Production (Moz)

15

Silver CAS ($/oz)

$16.00

Silver AISC ($/oz) c

$21.60

Lead ($0.95/lb price assumption)

Lead Production (Mlb)

100

Lead CAS ($/lb)

$0.80

Lead AISC ($/lb) c

$1.00

Zinc ($1.15/lb price assumption)

Zinc Production (Mlb)

230

Zinc CAS ($/lb)

$1.10

Zinc AISC ($/lb) c

$1.60

Attributable Capital

Sustaining Capital ($M)

$1,400

Development Capital ($M)

$1,100

Consolidated Expenses

Exploration & Advanced Projects ($M)

$500

General & Administrative ($M)

$275

Interest Expense ($M)

$210

Depreciation & Amortization ($M)

$2,000

Adjusted Tax Rate d,e

32% - 36%

a

 

2023 outlook projections are considered forward-looking statements and represent management’s good faith estimates or expectations of future production results as of October 26, 2023, excluding Newcrest Mining Limited. Outlook is based upon certain assumptions, including, but not limited to, metal prices, oil prices, certain exchange rates and other assumptions. For example, revised 2023 Outlook assumes $1,900/oz Au, $3.50/lb Cu, $23.00/oz Ag, $1.15/lb Zn, $0.95/lb Pb, $0.70 AUD/USD exchange rate, $0.75 CAD/USD exchange rate and $80/barrel WTI. Production, CAS, AISC and capital estimates exclude projects that have not yet been approved, except for Cerro Negro District Expansion 1 which is 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 statement at the end of this release.

b

 

Attributable production includes Newmont’s 40% interest in Pueblo Viejo, which is accounted for as an equity method investment.

c

 

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 2023 CAS outlook.

d

 

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

e

 

Assuming average prices of $1,900 per ounce for gold, $3.50 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, sales and cost estimates, we estimate our consolidated adjusted effective tax rate related to continuing operations for 2023 will be between 32%-36%.

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

Operating Results

2023

2022

% Change

 

2023

2022

% Change

Attributable Sales (koz)

 

 

 

 

 

 

 

Attributable gold ounces sold (1)

 

1,229

 

1,369

(10

)%

 

 

3,614

 

4,115

(12

)%

Attributable gold equivalent ounces sold

 

59

 

281

(79

)%

 

 

575

 

964

(40

)%

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

Average realized gold price

$

1,920

$

1,691

14

%

 

$

1,930

$

1,806

7

%

Average realized copper price

$

3.68

$

2.80

31

%

 

$

3.71

$

3.54

5

%

Average realized silver price (2)

N.M.

$

15.42

N.M.

 

$

20.18

$

17.81

13

%

Average realized lead price (2)

N.M.

$

0.86

N.M.

 

$

0.90

$

0.92

(2

)%

Average realized zinc price (2)

N.M.

$

1.25

N.M.

 

$

0.97

$

1.41

(31

)%

 

 

 

 

 

 

 

 

Attributable Production (koz)

 

 

 

 

 

 

 

CC&V

 

45

 

47

(4

)%

 

 

134

 

125

7

%

Musselwhite

 

48

 

44

9

%

 

 

130

 

115

13

%

Porcupine

 

64

 

74

(14

)%

 

 

190

 

201

(5

)%

Éléonore

 

50

 

57

(12

)%

 

 

164

 

148

11

%

Peñasquito (2)

 

 

182

(100

)%

 

 

123

 

440

(72

)%

Merian (75%)

 

62

 

65

(5

)%

 

 

164

 

212

(23

)%

Cerro Negro

 

71

 

67

6

%

 

 

186

 

209

(11

)%

Yanacocha (3)

 

87

 

53

64

%

 

 

208

 

172

21

%

Boddington

 

181

 

174

4

%

 

 

589

 

589

%

Tanami

 

123

 

122

1

%

 

 

312

 

355

(12

)%

Ahafo

 

133

 

155

(14

)%

 

 

398

 

397

%

Akyem

 

75

 

99

(24

)%

 

 

195

 

298

(35

)%

Nevada Gold Mines

 

300

 

267

12

%

 

 

848

 

845

%

Total Gold (excluding equity method investments)

 

1,239

 

1,406

(12

)%

 

 

3,641

 

4,106

(11

)%

Pueblo Viejo (40%) (4)

 

52

 

81

(36

)%

 

 

163

 

220

(26

)%

Total Gold

 

1,291

 

1,487

(13

)%

 

 

3,804

 

4,326

(12

)%

 

 

 

 

 

 

 

 

Peñasquito (2)

 

 

254

(100

)%

 

 

413

 

819

(50

)%

Boddington

 

58

 

45

29

%

 

 

189

 

160

18

%

Total Gold Equivalent Ounces

 

58

 

299

(81

)%

 

 

602

 

979

(39

)%

 

 

 

 

 

 

 

 

CAS Consolidated ($/oz, $/GEO)

 

 

 

 

 

 

 

CC&V

$

1,253

$

1,325

(5

)%

 

$

1,165

$

1,265

(8

)%

Musselwhite

$

1,045

$

1,113

(6

)%

 

$

1,230

$

1,257

(2

)%

Porcupine

$

1,189

$

970

23

%

 

$

1,160

$

1,038

12

%

Éléonore

$

1,338

$

1,171

14

%

 

$

1,280

$

1,305

(2

)%

Peñasquito (2)

N.M.

$

757

N.M.

 

$

1,196

$

791

51

%

Merian (75%)

$

1,261

$

1,041

21

%

 

$

1,231

$

947

30

%

Cerro Negro

$

1,216

$

1,068

14

%

 

$

1,317

$

986

34

%

Yanacocha (3)

$

1,057

$

1,415

(25

)%

 

$

1,102

$

1,130

(2

)%

Boddington

$

848

$

839

1

%

 

$

821

$

798

3

%

Tanami

$

655

$

637

3

%

 

$

783

$

641

22

%

Ahafo

$

969

$

1,011

(4

)%

 

$

957

$

984

(3

)%

Akyem

$

1,032

$

776

33

%

 

$

958

$

737

30

%

Nevada Gold Mines

$

992

$

1,104

(10

)%

 

$

1,049

$

1,010

4

%

Total Gold

$

1,019

$

968

5

%

 

$

1,033

$

931

11

%

Total Gold (by-product) (5)

$

1,022

$

907

13

%

 

$

988

$

847

17

%

 

 

 

 

 

 

 

 

Peñasquito (2)

N.M.

$

699

N.M.

 

$

1,183

$

815

45

%

Boddington

$

816

$

776

5

%

 

$

797

$

768

4

%

Total Gold Equivalent Ounces

$

1,636

$

712

130

%

 

$

1,056

$

807

31

%

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

Operating Results (continued)

2023

2022

% Change

 

2023

2022

% Change

AISC Consolidated ($/oz, $/GEO)

 

 

 

 

 

 

 

 

CC&V

$

1,819

$

1,750

4

%

 

$

1,603

$

1,661

(3

)%

Musselwhite

$

1,715

$

1,533

12

%

 

$

1,869

$

1,619

15

%

Porcupine

$

1,644

$

1,199

37

%

 

$

1,545

$

1,271

22

%

Éléonore

$

2,107

$

1,570

34

%

 

$

1,855

$

1,675

11

%

Peñasquito (2)

N.M.

$

982

N.M.

 

 

$

1,569

$

1,002

57

%

Merian (75%)

$

1,652

$

1,252

32

%

 

$

1,580

$

1,131

40

%

Cerro Negro

$

1,438

$

1,411

2

%

 

$

1,556

$

1,248

25

%

Yanacocha (3)

$

1,187

$

1,676

(29

)%

 

$

1,290

$

1,362

(5

)%

Boddington

$

1,123

$

1,001

12

%

 

$

1,039

$

921

13

%

Tanami

$

890

$

925

(4

)%

 

$

1,066

$

930

15

%

Ahafo

$

1,208

$

1,161

4

%

 

$

1,269

$

1,167

9

%

Akyem

$

1,332

$

930

43

%

 

$

1,260

$

900

40

%

Nevada Gold Mines

$

1,307

$

1,358

(4

)%

 

$

1,364

$

1,232

11

%

Total Gold

$

1,426

$

1,271

12

%

 

$

1,425

$

1,209

18

%

Total Gold (by-product) (5)

$

1,467

$

1,268

16

%

 

$

1,451

$

1,192

22

%

 

 

 

 

 

 

 

 

 

Peñasquito (2)

N.M.

$

982

N.M.

 

 

$

1,648

$

1,092

51

%

Boddington

$

1,108

$

873

27

%

 

$

1,033

$

879

18

%

Total Gold Equivalent Ounces

$

2,422

$

999

142

%

 

$

1,511

$

1,098

38

%

(1)

 

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

(2)

 

For the three months ended September 30, 2023, Peñasquito had no production due to the suspension of operations as a result of the Union labor strike. Sales activity recognized in the third quarter of 2023 is related to adjustments on provisionally priced concentrate sales subject to final settlement. Consequently, price per ounce/pound metrics are not meaningful ("N.M.").

(3)

 

The Company recognized amounts attributable to noncontrolling interest for Yanacocha during the period prior to acquiring Sumitomo Corporation's 5% interest in the second quarter of 2022.

(4)

 

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.

(5)

 

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

NEWMONT CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited, in millions except per share)

 

 

Three Months Ended

September 30,

 

Nine Months Ended

September 30,

 

2023

 

2022

 

2023

 

2022

 

 

 

 

 

 

 

 

Sales

$

2,493

 

 

$

2,634

 

 

$

7,855

 

 

$

8,715

 

 

 

 

 

 

 

 

 

Costs and expenses:

 

 

 

 

 

 

 

Costs applicable to sales (1)

 

1,371

 

 

 

1,545

 

 

 

4,396

 

 

 

4,688

 

Depreciation and amortization

 

480

 

 

 

508

 

 

 

1,427

 

 

 

1,614

 

Reclamation and remediation

 

166

 

 

 

53

 

 

 

298

 

 

 

163

 

Exploration

 

78

 

 

 

69

 

 

 

192

 

 

 

169

 

Advanced projects, research and development

 

53

 

 

 

80

 

 

 

132

 

 

 

169

 

General and administrative

 

70

 

 

 

73

 

 

 

215

 

 

 

210

 

Other expense, net

 

37

 

 

 

11

 

 

 

86

 

 

 

68

 

 

 

2,255

 

 

 

2,339

 

 

 

6,746

 

 

 

7,081

 

Other income (expense):

 

 

 

 

 

 

 

Other income (loss), net

 

42

 

 

 

56

 

 

 

124

 

 

 

(128

)

Interest expense, net of capitalized interest

 

(48

)

 

 

(55

)

 

 

(162

)

 

 

(174

)

 

 

(6

)

 

 

1

 

 

 

(38

)

 

 

(302

)

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

 

232

 

 

 

296

 

 

 

1,071

 

 

 

1,332

 

Income and mining tax benefit (expense)

 

(73

)

 

 

(96

)

 

 

(449

)

 

 

(343

)

Equity income (loss) of affiliates

 

3

 

 

 

25

 

 

 

44

 

 

 

81

 

Net income (loss) from continuing operations

 

162

 

 

 

225

 

 

 

666

 

 

 

1,070

 

Net income (loss) from discontinued operations

 

1

 

 

 

(5

)

 

 

15

 

 

 

19

 

Net income (loss)

 

163

 

 

 

220

 

 

 

681

 

 

 

1,089

 

Net loss (income) attributable to noncontrolling interests

 

(5

)

 

 

(7

)

 

 

(17

)

 

 

(41

)

Net income (loss) attributable to Newmont stockholders

$

158

 

 

$

213

 

 

$

664

 

 

$

1,048

 

 

 

 

 

 

 

 

 

Net income (loss) attributable to Newmont stockholders:

 

 

 

 

 

 

 

Continuing operations

$

157

 

 

$

218

 

 

$

649

 

 

$

1,029

 

Discontinued operations

 

1

 

 

 

(5

)

 

 

15

 

 

 

19

 

 

$

158

 

 

$

213

 

 

$

664

 

 

$

1,048

 

 

 

 

 

 

 

 

 

Weighted average common shares (millions):

 

 

 

 

 

 

 

Basic

 

795

 

 

 

794

 

 

 

795

 

 

 

793

 

Effect of employee stock-based awards

 

1

 

 

 

1

 

 

$

 

 

 

2

 

Diluted

 

796

 

 

 

795

 

 

 

795

 

 

 

795

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

Basic:

 

 

 

 

 

 

 

Continuing operations

$

0.20

 

 

$

0.28

 

 

$

0.82

 

 

$

1.30

 

Discontinued operations

 

 

 

 

(0.01

)

 

 

0.02

 

 

 

0.02

 

 

$

0.20

 

 

$

0.27

 

 

$

0.84

 

 

$

1.32

 

Diluted:

 

 

 

 

 

 

 

Continuing operations

$

0.20

 

 

$

0.28

 

 

$

0.82

 

 

$

1.30

 

Discontinued operations

 

 

 

 

(0.01

)

 

 

0.02

 

 

 

0.02

 

 

$

0.20

 

 

$

0.27

 

 

$

0.84

 

 

$

1.32

 

(1) 

 

Excludes Depreciation and amortization and Reclamation and remediation.

NEWMONT CORPORATION|

CONDENSED CONSOLIDATED BALANCE SHEETS

(unaudited, in millions)

 

 

At September 30,

2023

 

At December 31,

2022

ASSETS

 

 

 

Cash and cash equivalents

$

                       3,190

 

 

$

                       2,877

 

Time deposits and other investments

 

                               24

 

 

 

                            880

 

Trade receivables

 

                               78

 

 

 

                            366

 

Inventories

 

                         1,127

 

 

 

                            979

 

Stockpiles and ore on leach pads

 

                            829

 

 

 

                            774

 

Other current assets

 

                            707

 

 

 

                            639

 

Current assets

 

                         5,955

 

 

 

                         6,515

 

Property, plant and mine development, net

 

                       24,474

 

 

 

                       24,073

 

Investments

 

                         3,133

 

 

 

                         3,278

 

Stockpiles and ore on leach pads

 

                         1,740

 

 

 

                         1,716

 

Deferred income tax assets

 

                            138

 

 

 

                            173

 

Goodwill

 

                         1,971

 

 

 

                         1,971

 

Other non-current assets

 

                            673

 

 

 

                            756

 

Total assets

$

                     38,084

 

 

$

                     38,482

 

 

 

 

 

LIABILITIES

 

 

 

Accounts payable

$

                          651

 

 

$

                          633

 

Employee-related benefits

 

                            345

 

 

 

                            399

 

Income and mining taxes payable

 

                            143

 

 

 

                            199

 

Lease and other financing obligations

 

                               94

 

 

 

                               96

 

Other current liabilities

 

                         1,575

 

 

 

                         1,599

 

Current liabilities

 

                         2,808

 

 

 

                         2,926

 

Debt

 

                         5,575

 

 

 

                         5,571

 

Lease and other financing obligations

 

                            418

 

 

 

                            465

 

Reclamation and remediation liabilities

 

                         6,714

 

 

 

                         6,578

 

Deferred income tax liabilities

 

                         1,696

 

 

 

                         1,809

 

Employee-related benefits

 

                            397

 

 

 

                            342

 

Silver streaming agreement

 

                            787

 

 

 

                            828

 

Other non-current liabilities

 

                            429

 

 

 

                            430

 

Total liabilities

 

                       18,824

 

 

 

                       18,949

 

 

 

 

 

Commitments and contingencies (1)

 

 

 

 

 

 

 

EQUITY

 

 

 

Common stock

 

                         1,281

 

 

 

                         1,279

 

Treasury stock

 

                           (263

)

 

 

                           (239

)

Additional paid-in capital

 

                       17,425

 

 

 

                       17,369

 

Accumulated other comprehensive income (loss)

 

                                 8

 

 

 

                               29

 

Retained earnings

 

                            623

 

 

 

                            916

 

Newmont stockholders' equity

 

                       19,074

 

 

 

                       19,354

 

Noncontrolling interests

 

                            186

 

 

 

                            179

 

Total equity

 

                       19,260

 

 

 

                       19,533

 

Total liabilities and equity

$

                     38,084

 

 

$

                     38,482

(1) 

 

Refer to Note 18 of the Condensed Consolidated Financial Statements for additional information.

NEWMONT CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited, in millions)

 

 

Three Months Ended

September 30,

 

Nine Months Ended

September 30,

 

2023

 

2022

 

2023

 

2022

Operating activities:

 

 

 

 

 

 

 

Net income (loss)

$

163

 

 

$

220

 

 

$

681

 

 

$

1,089

 

Non-cash adjustments:

 

 

 

 

 

 

 

Depreciation and amortization

 

480

 

 

 

508

 

 

 

1,427

 

 

 

1,614

 

Net loss (income) from discontinued operations

 

(1

)

 

 

5

 

 

 

(15

)

 

 

(19

)

Reclamation and remediation

 

167

 

 

 

46

 

 

 

287

 

 

 

149

 

Stock-based compensation

 

16

 

 

 

17

 

 

 

58

 

 

 

57

 

Change in fair value of investments

 

41

 

 

 

(5

)

 

 

42

 

 

 

91

 

(Gain) loss on asset and investment sales, net

 

2

 

 

 

(9

)

 

 

(34

)

 

 

26

 

Deferred income taxes

 

(24

)

 

 

(34

)

 

 

(3

)

 

 

(145

)

Charges from pension settlement

 

 

 

 

 

 

 

 

 

 

130

 

Other non-cash adjustments

 

30

 

 

 

28

 

 

 

37

 

 

 

8

 

Net change in operating assets and liabilities

 

127

 

 

 

(310

)

 

 

(342

)

 

 

(812

)

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

 

1,001

 

 

 

466

 

 

 

2,138

 

 

 

2,188

 

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

 

2

 

 

 

7

 

 

 

9

 

 

 

22

 

Net cash provided by (used in) operating activities

 

1,003

 

 

 

473

 

 

 

2,147

 

 

 

2,210

 

 

 

 

 

 

 

 

 

Investing activities:

 

 

 

 

 

Additions to property, plant and mine development

 

(604

)

 

 

(529

)

 

 

(1,746

)

 

 

(1,485

)

Proceeds from maturities of investments

 

374

 

 

 

 

 

 

1,355

 

 

 

 

Purchases of investments

 

(3

)

 

 

(657

)

 

 

(545

)

 

 

(665

)

Proceeds from asset and investment sales

 

5

 

 

 

16

 

 

 

219

 

 

 

57

 

Contributions to equity method investees

 

(26

)

 

 

(61

)

 

 

(90

)

 

 

(152

)

Return of investment from equity method investees

 

 

 

 

13

 

 

 

30

 

 

 

52

 

Other

 

1

 

 

 

(5

)

 

 

24

 

 

 

(64

)

Net cash provided by (used in) investing activities

 

(253

)

 

 

(1,223

)

 

 

(753

)

 

 

(2,257

)

 

 

 

 

 

 

 

 

Financing activities:

 

 

 

 

 

Dividends paid to common stockholders

 

(318

)

 

 

(437

)

 

 

(954

)

 

 

(1,310

)

Distributions to noncontrolling interests

 

(41

)

 

 

(37

)

 

 

(107

)

 

 

(140

)

Funding from noncontrolling interests

 

32

 

 

 

33

 

 

 

107

 

 

 

89

 

Payments on lease and other financing obligations

 

(16

)

 

 

(16

)

 

 

(48

)

 

 

(50

)

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

 

(2

)

 

 

(2

)

 

 

(24

)

 

 

(38

)

Acquisition of noncontrolling interests

 

 

 

 

 

 

 

 

 

 

(348

)

Repayment of debt

 

 

 

 

 

 

 

 

 

 

(89

)

Other

 

(36

)

 

 

(1

)

 

 

(39

)

 

 

9

 

Net cash provided by (used in) financing activities

 

(381

)

 

 

(460

)

 

 

(1,065

)

 

 

(1,877

)

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

 

(5

)

 

 

(20

)

 

 

(9

)

 

 

(29

)

Net change in cash, cash equivalents and restricted cash

 

364

 

 

 

(1,230

)

 

 

320

 

 

 

(1,953

)

Cash, cash equivalents and restricted cash at beginning of period

 

2,900

 

 

 

4,370

 

 

 

2,944

 

 

 

5,093

 

Cash, cash equivalents and restricted cash at end of period

$

3,264

 

 

$

3,140

 

 

$

3,264

 

 

$

3,140

 

 

 

 

 

 

 

 

 

Reconciliation of cash, cash equivalents and restricted cash:

 

 

 

 

 

Cash and cash equivalents

$

3,190

 

 

$

3,058

 

 

$

3,190

 

 

$

3,058

 

Restricted cash included in Other current assets

 

1

 

 

 

18

 

 

 

1

 

 

 

18

 

Restricted cash included in Other non-current assets

 

73

 

 

 

64

 

 

 

73

 

 

 

64

 

Total cash, cash equivalents and restricted cash

$

3,264

 

 

$

3,140

 

 

$

3,264

 

 

$

3,140

 

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 for the year ended December 31, 2022, filed with the SEC on February 23, 2023 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, 2023

 

Nine Months Ended

September 30, 2023

 

 

 

per share data (1)

 

 

 

per share data (1)

 

 

 

basic

 

diluted

 

 

 

basic

 

diluted

Net income (loss) attributable to Newmont stockholders

$

158

 

 

$

0.20

 

 

$

0.20

 

 

$

664

 

 

$

0.84

 

 

$

0.84

 

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

 

(1

)

 

 

 

 

 

 

 

 

(15

)

 

 

(0.02

)

 

 

(0.02

)

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

 

157

 

 

 

0.20

 

 

 

0.20

 

 

 

649

 

 

 

0.82

 

 

 

0.82

 

Reclamation and remediation charges (2)

 

104

 

 

 

0.14

 

 

 

0.14

 

 

 

102

 

 

 

0.13

 

 

 

0.13

 

Change in fair value of investments (3)

 

41

 

 

 

0.05

 

 

 

0.05

 

 

 

42

 

 

 

0.05

 

 

 

0.05

 

Newcrest transaction-related costs (4)

 

16

 

 

 

0.02

 

 

 

0.02

 

 

 

37

 

 

 

0.05

 

 

 

0.05

 

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

 

2

 

 

 

 

 

 

 

 

 

(34

)

 

 

(0.04

)

 

 

(0.04

)

Restructuring and severance (6)

 

7

 

 

 

0.01

 

 

 

0.01

 

 

 

19

 

 

 

0.03

 

 

 

0.03

 

Impairment charges (7)

 

2

 

 

 

 

 

 

 

 

 

10

 

 

 

0.01

 

 

 

0.01

 

Settlement costs (8)

 

2

 

 

 

 

 

 

 

 

 

2

 

 

 

 

 

 

 

Other (9)

 

(1

)

 

 

 

 

 

 

 

 

(5

)

 

 

 

 

 

 

Tax effect of adjustments (10)

 

(47

)

 

 

(0.06

)

 

 

(0.06

)

 

 

(48

)

 

 

(0.07

)

 

 

(0.07

)

Valuation allowance and other tax adjustments (11)

 

3

 

 

 

 

 

 

 

 

 

98

 

 

 

0.12

 

 

 

0.12

 

Adjusted net income (loss)

$

286

 

 

$

0.36

 

 

$

0.36

 

 

$

872

 

 

$

1.10

 

 

$

1.10

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares (millions): (12)

 

 

 

795

 

 

 

796

 

 

 

 

 

795

 

 

 

795

 

(1)

 

Per share measures may not recalculate due to rounding.

(2)

 

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 Statement for further information.

(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 equity securities.

(4)

 

Newcrest transaction-related costs, included in Other expense, net, primarily represents costs incurred related to the Newcrest transaction. Refer to Note 1 of the Condensed Consolidated Financial Statements for further information.

(5)

 

(Gain) loss on asset and investment sales, net, included in Other income (loss), net, primarily represents the net gain recognized on the exchange of the previously held Maverix investment for Triple Flag and the subsequent sale of the Triple Flag investment. Refer to Note 11 of the Condensed Consolidated Financial Statements for further information.

(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.

(7)

 

Impairment charges, 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)

 

Settlement costs, included in Other expense, net, are primarily comprised of litigation expenses.

(9)

 

Other represents income received on the favorable settlement of certain matters that were outstanding at the time of sale of the related investment in 2022. Amounts included in Other income (loss), net.

(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, 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, 2023 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 $69 and $126, the effects of changes in foreign exchange rates on deferred tax assets and liabilities of $(73) and $(52), net reductions to the reserve for uncertain tax positions of $4 and $18, other tax adjustments of $3 and $6. For further information on reductions to the reserve for uncertain tax positions, refer to Note 8 of the Condensed Consolidated Financial Statements.

(12)

 

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

 

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 settlements (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, net (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 charges (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, represent 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.

(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 1 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 charges, 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.

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,

2023

 

2022

 

2023

 

2022

Net income (loss) attributable to Newmont stockholders

$

158

 

 

$

213

 

 

$

664

 

 

$

1,048

 

Net income (loss) attributable to noncontrolling interests

 

5

 

 

 

7

 

 

 

17

 

 

 

41

 

Net loss (Income) from discontinued operations

 

(1

)

 

 

5

 

 

 

(15

)

 

 

(19

)

Equity loss (income) of affiliates

 

(3

)

 

 

(25

)

 

 

(44

)

 

 

(81

)

Income and mining tax expense (benefit)

 

73

 

 

 

96

 

 

 

449

 

 

 

343

 

Depreciation and amortization

 

480

 

 

 

508

 

 

 

1,427

 

 

 

1,614

 

Interest expense, net of capitalized interest

 

48

 

 

 

55

 

 

 

162

 

 

 

174

 

EBITDA

$

760

 

 

$

859

 

 

$

2,660

 

 

$

3,120

 

Adjustments:

 

 

 

 

 

 

 

Reclamation and remediation charges (1)

$

104

 

 

$

 

 

$

102

 

 

$

13

 

Change in fair value of investments (2)

 

41

 

 

 

(5

)

 

 

42

 

 

 

91

 

Newcrest transaction-related costs (3)

 

16

 

 

 

 

 

 

37

 

 

 

 

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

 

2

 

 

 

(9

)

 

 

(34

)

 

 

26

 

Restructuring and severance (5)

 

7

 

 

 

2

 

 

 

19

 

 

 

3

 

Impairment charges (6)

 

2

 

 

 

1

 

 

 

10

 

 

 

3

 

Settlement costs (7)

 

2

 

 

 

2

 

 

 

2

 

 

 

20

 

Pension settlement (8)

 

 

 

 

 

 

 

 

 

 

130

 

COVID-19 specific costs (9)

 

 

 

 

 

 

 

 

 

 

1

 

Other (10)

 

(1

)

 

 

 

 

 

(5

)

 

 

(18

)

Adjusted EBITDA

$

933

 

 

$

850

 

 

$

2,833

 

 

$

3,389

 

(1) 

 

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.

(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 equity securities.

(3) 

 

Newcrest transaction-related costs, included in Other expense, net, primarily represents costs incurred related to the Newcrest transaction in 2023. Refer to Note 1 of the Condensed Consolidated Financial Statements for further information.

(4) 

 

(Gain) loss on asset and investment sales, net, included in Other income (loss), net, in 2023 is primarily comprised of the net gain recognized on the exchange of the previously held Maverix investment for Triple Flag and the subsequent sale of the Triple Flag investment. Refer to Note 11 of the Condensed Consolidated Financial Statements for further information. Amounts related to 2022 are 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 at NGM in the third quarter of 2022. Refer to Note 1 of the Condensed Consolidated Financial Statements for further information.

(5)

 

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.

(6) 

 

Impairment charges, 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, are primarily comprised of litigation expenses in 2023 and a legal settlement and a voluntary contribution made to support humanitarian efforts in Ukraine in 2022.

(8) 

 

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.

(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)

 

Other, included in Other income (loss), net, in 2023 represents income received during the first quarter of 2023, on the favorable settlement of certain matters that were outstanding at the time of sale of the related investment in 2022. Amounts related to 2022 are 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.

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

 

Three Months Ended

September 30,

 

Nine Months Ended

September 30,

 

2023

 

2022

 

2023

 

2022

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

$

151

 

$

49

 

$

376

 

$

293

Depreciation and amortization (1)

 

112

 

 

109

 

 

323

 

 

361

NGM EBITDA

$

263

 

$

158

 

$

699

 

$

654

(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,

 

2023

 

2022

 

2023

 

2022

Net cash provided by (used in) operating activities

$

1,003

 

 

$

473

 

 

$

2,147

 

 

$

2,210

 

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

 

(2

)

 

 

(7

)

 

 

(9

)

 

 

(22

)

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

 

1,001

 

 

 

466

 

 

 

2,138

 

 

 

2,188

 

Less: Additions to property, plant and mine development

 

(604

)

 

 

(529

)

 

 

(1,746

)

 

 

(1,485

)

Free Cash Flow

$

397

 

 

$

(63

)

 

$

392

 

 

$

703

 

 

 

 

 

 

 

 

 

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

$

(253

)

 

$

(1,223

)

 

$

(753

)

 

$

(2,257

)

Net cash provided by (used in) financing activities

$

(381

)

 

$

(460

)

 

$

(1,065

)

 

$

(1,877

 

(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, 2023

 

Nine Months Ended September 30, 2023

 

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

$

1,003

 

 

$

(17

)

 

$

986

 

 

$

2,147

 

 

$

(29

)

 

$

2,118

 

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

 

(2

)

 

 

 

 

 

(2

)

 

 

(9

)

 

 

 

 

 

(9

)

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

 

1,001

 

 

 

(17

)

 

 

984

 

 

 

2,138

 

 

 

(29

)

 

 

2,109

 

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

 

(604

)

 

 

6

 

 

 

(598

)

 

 

(1,746

)

 

 

15

 

 

 

(1,731

)

Free Cash Flow

$

397

 

 

$

(11

)

 

$

386

 

 

$

392

 

 

$

(14

)

 

$

378

 

 

 

 

 

 

 

 

 

 

 

 

 

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

$

(253

)

 

 

 

 

 

$

(753

)

 

 

 

 

Net cash provided by (used in) financing activities

$

(381

)

 

 

 

 

 

$

(1,065

)

 

 

 

 

(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 relates to Merian (25%).

(2)

 

For the three months ended September 30, 2023, Merian had total consolidated Additions to property, plant and mine development of $26 on a cash basis. For the nine months ended September 30, 2023, Merian had total consolidated Additions to property, plant and mine development of $60 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, 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, which relate to Merian (25%) for the three and nine months ended September 30, 2022, and Yanacocha (5%) for the nine months ended September 30, 2022.

(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.​

Net Debt

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 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,

2023

 

At December 31,

2022

Debt

$

5,575

 

 

$

5,571

 

Lease and other financing obligations

 

512

 

 

 

561

 

Less: Cash and cash equivalents

 

(3,190

)

 

 

(2,877

)

Less: Time deposits (1)

 

 

 

 

(829

)

Net debt

$

2,897

 

$

2,426

 

(1)

 

Time deposits are included in Time deposits and other investments on the Condensed Consolidated Balance Sheets. Refer to Note 11 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,

 

2023

 

2022

 

2023

 

2022

Costs applicable to sales (1)(2)

$

1,273

 

$

1,345

 

$

3,789

 

$

3,910

Gold sold (thousand ounces)

 

1,250

 

 

1,391

 

 

3,669

 

 

4,202

Costs applicable to sales per ounce (3)

$

1,019

 

$

968

 

$

1,033

 

$

931

(1)

 

Includes by-product credits of $28 and $22 during the three months ended September 30, 2023 and 2022, respectively, and $86 and $75 during the nine months ended September 30, 2023 and 2022, 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,

 

2023

 

2022

 

2023

 

2022

Costs applicable to sales (1)(2)

$

98

 

$

200

 

$

607

 

$

778

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

 

59

 

 

281

 

 

575

 

 

964

Costs applicable to sales per gold equivalent ounce (4)

$

1,636

 

$

712

 

$

1,056

 

$

807

(1)

 

Includes by-product credits of $1 and $2 during the three months ended September 30, 2023 and 2022, respectively, and $5 and $6 during the nine months ended September 30, 2023 and 2022, 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 ($1,400/oz.), Copper ($3.50/lb.), Silver ($20.00/oz.), Lead ($1.00/lb.) and Zinc ($1.20/lb.) pricing for 2023 and Gold ($1,200/oz.), Copper ($3.25/lb.), Silver ($23.00/oz.), Lead ($0.95/lb.) and Zinc ($1.15/lb.) pricing for 2022.

(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,

 

2023

 

2022

 

2023

 

2022

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

$

298

 

$

294

 

$

888

 

$

853

Gold sold (thousand ounces), NGM

 

301

 

 

267

 

 

847

 

 

845

Costs applicable to sales per ounce, NGM (3)

$

992

 

$

1,104

 

$

1,049

 

$

1,010

(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, 2023

Costs

Applicable

to

Sales(1)(2)(3)(4)

 

Reclamation

Costs(5)

 

Advanced

Projects,

Research and

Development

and

Exploration(6)

 

General and

Administrative

 

Other

Expense,

Net(7)

 

Treatment

and

Refining

Costs

 

Sustaining

Capital and

Lease

Related

Costs(8)(9)

 

All-In

Sustaining

Costs

 

Ounces

(000)

Sold

 

All-In

Sustaining

Costs Per

oz.(10)

Gold

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CC&V

$

57

 

$

3

 

$

3

 

$

 

$

 

$

 

$

20

 

$

83

 

46

 

 

$

1,819

Musselwhite

 

50

 

 

1

 

 

2

 

 

 

 

 

 

 

 

28

 

 

81

 

47

 

 

 

1,715

Porcupine

 

73

 

 

5

 

 

3

 

 

 

 

 

 

 

 

19

 

 

100

 

61

 

 

 

1,644

Éléonore

 

63

 

 

2

 

 

3

 

 

 

 

1

 

 

 

 

29

 

 

98

 

46

 

 

 

2,107

Peñasquito (11)

 

16

 

 

2

 

 

 

 

 

 

 

 

 

 

5

 

 

23

 

(1

)

 

N.M.

Merian

 

104

 

 

2

 

 

4

 

 

 

 

 

 

 

 

27

 

 

137

 

83

 

 

 

1,652

Cerro Negro

 

79

 

 

1

 

 

1

 

 

 

 

1

 

 

 

 

11

 

 

93

 

65

 

 

 

1,438

Yanacocha

 

90

 

 

6

 

 

 

 

 

 

 

 

 

 

4

 

 

100

 

85

 

 

 

1,187

Boddington

 

157

 

 

5

 

 

1

 

 

 

 

 

 

4

 

 

42

 

 

209

 

186

 

 

 

1,123

Tanami

 

81

 

 

1

 

 

 

 

 

 

 

 

 

 

28

 

 

110

 

123

 

 

 

890

Ahafo

 

133

 

 

5

 

 

 

 

 

 

1

 

 

 

 

27

 

 

166

 

137

 

 

 

1,208

Akyem

 

72

 

 

13

 

 

 

 

1

 

 

 

 

 

 

8

 

 

94

 

71

 

 

 

1,332

Nevada Gold Mines

 

298

 

 

4

 

 

4

 

 

2

 

 

2

 

 

2

 

 

82

 

 

394

 

301

 

 

 

1,307

Corporate and Other (12)

 

 

 

 

 

23

 

 

62

 

 

3

 

 

 

 

6

 

 

94

 

 

 

 

Total Gold

$

1,273

 

$

50

 

$

44

 

$

65

 

$

8

 

$

6

 

$

336

 

$

1,782

 

1,250

 

 

$

1,426

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gold equivalent ounces - other metals (13)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Peñasquito (11)

$

48

 

$

7

 

$

1

 

$

 

$

1

 

$

1

 

$

11

 

$

69

 

(2

)

 

N.M.

Boddington

 

50

 

 

 

 

 

 

 

 

 

 

3

 

 

14

 

 

67

 

61

 

 

$

1,108

Corporate and Other (12)

 

 

 

 

 

1

 

 

5

 

 

1

 

 

 

 

2

 

 

9

 

 

 

 

Total Gold Equivalent Ounces

$

98

 

$

7

 

$

2

 

$

5

 

$

2

 

$

4

 

$

27

 

$

145

 

59

 

 

$

2,422

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated

$

1,371

 

$

57

 

$

46

 

$

70

 

$

10

 

$

10

 

$

363

 

$

1,927

 

 

 

 

(1)

 

Excludes Depreciation and amortization and Reclamation and remediation.

(2)

 

Includes by-product credits of $29 and excludes co-product revenues of $93.

(3)

 

Includes stockpile, leach pad, and product inventory adjustments of $1 at Porcupine, $2 at Peñasquito, and $2 at NGM.

(4)

 

Beginning January 1, 2023, COVID-19 specific costs incurred in the ordinary course of business are recognized in Costs applicable to sales.

(5)

 

Reclamation costs include operating accretion and amortization of asset retirement costs of $25 and $32, 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 $37 and $104, respectively.

(6)

 

Advanced projects, research and development and exploration excludes development expenditures of $1 at CC&V, $2 at Porcupine $2 at Peñasquito, $5 at Merian, $2 at Cerro Negro, $7 at Tanami, $12 at Ahafo, $6 at Akyem, $4 at NGM, and $44 at Corporate and Other, totaling $85 related to developing new operations or major projects at existing operations where these projects will materially benefit the operation.

(7)

 

Other expense, net is adjusted for Newcrest transaction-related costs of $16, restructuring and severance of $7, impairment charges of $2, settlement costs of $2.

(8)

 

Excludes capitalized interest related to sustaining capital expenditures. See Liquidity and Capital Resources within Part I, Item 2, Management's Discussion and Analysis for capital expenditures by segment.

(9)

 

Includes finance lease payments and other costs for sustaining projects of $17.

(10)

 

Per ounce measures may not recalculate due to rounding.

(11)

 

For the three months ended September 30, 2023, Peñasquito had no production due to the Peñasquito labor strike. Sales activity recognized in the third quarter of 2023 at Peñasquito is related to adjustments on provisionally priced concentrate sales subject to final settlement. As such, the per ounce metrics are not meaningful ("N.M.") for the current quarter.

(12)

 

Corporate and Other includes the Company's business activities relating to its corporate and regional offices and all equity method investments. Refer to Note 3 of the Condensed Consolidated Financial Statements for further information.

(13)

 

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 ($1,400/oz.), Copper ($3.50/lb.), Silver ($20.00/oz.), Lead ($1.00/lb.) and Zinc ($1.20/lb.) pricing for 2023.

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)(9)

 

All-In

Sustaining

Costs

 

Ounces

(000)

Sold

 

All-In

Sustaining

Costs Per

oz.(10)

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

Merian

 

89

 

 

1

 

 

4

 

 

 

 

 

1

 

 

 

 

 

13

 

 

108

 

86

 

 

1,252

Cerro Negro

 

71

 

 

2

 

 

 

 

 

 

 

2

 

 

 

 

 

18

 

 

93

 

66

 

 

1,411

Yanacocha

 

74

 

 

4

 

 

1

 

 

 

 

 

2

 

 

 

 

 

6

 

 

87

 

53

 

 

1,676

Boddington

 

148

 

 

3

 

 

1

 

 

 

 

 

1

 

 

 

4

 

 

19

 

 

176

 

177

 

 

1,001

Tanami

 

81

 

 

1

 

 

2

 

 

 

 

 

1

 

 

 

 

 

32

 

 

117

 

127

 

 

925

Ahafo

 

155

 

 

3

 

 

2

 

 

 

 

 

(1

)

 

 

 

 

19

 

 

178

 

153

 

 

1,161

Akyem

 

77

 

 

8

 

 

1

 

 

 

 

 

 

 

 

 

 

7

 

 

93

 

100

 

 

930

Nevada Gold Mines

 

294

 

 

3

 

 

4

 

 

2

 

 

 

 

 

 

 

 

59

 

 

362

 

267

 

 

1,358

Corporate and Other (11)

 

 

 

 

 

19

 

 

62

 

 

 

 

 

 

 

 

7

 

 

88

 

1

 

 

Total Gold

$

1,345

 

$

37

 

$

43

 

$

65

 

 

$

7

 

 

$

12

 

$

258

 

$

1,767

 

1,391

 

$

1,271

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gold equivalent ounces - other metals (12)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Peñasquito

$

164

 

$

4

 

$

2

 

$

1

 

 

$

(1

)

 

$

30

 

$

30

 

$

230

 

234

 

$

982

Boddington

 

36

 

 

1

 

 

 

 

(1

)

 

 

 

 

 

3

 

 

2

 

 

41

 

47

 

 

873

Corporate and Other (11)

 

 

 

 

 

1

 

 

8

 

 

 

 

 

 

 

 

1

 

 

10

 

 

 

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, $4 at Yanacocha, $4 at Merian, $8 at Cerro Negro, $6 at Tanami, $5 at Ahafo, $3 at Akyem, $5 at NGM and $65 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 is adjusted for settlement costs of $2, restructuring and severance costs of $2, and impairment charges of $1.

(7)

 

Includes sustaining capital expenditures of $276. See Liquidity and Capital Resources within Part I, Item 2, Management's Discussion and Analysis for sustaining capital expenditures by segment.

(8)

 

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.

(9)

 

Includes finance lease payments for sustaining projects of $15.

(10)

 

Per ounce measures may not recalculate due to rounding.

(11)

 

Corporate and Other includes the Company's business activities relating to its corporate and regional offices and all equity method investments. Refer to Note 3 of the Condensed Consolidated Financial Statements for further information.

(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 ($3.25/lb.), Silver ($23.00/oz.), Lead ($0.95/lb.) and Zinc ($1.15/lb.) pricing for 2022.

Nine Months Ended

September 30, 2023

Costs

Applicable

to

Sales(1)(2)(3)(4)

 

Reclamation

Costs(5)

 

Advanced

Projects,

Research and

Development

and

Exploration(6)

 

General and

Administrative

 

Other

Expense,

Net(7)

 

Treatment

and

Refining

Costs

 

Sustaining

Capital

and Lease

Related

Costs(8)(9)

 

All-In

Sustaining

Costs

 

Ounces

(000)

Sold

 

All-In

Sustaining

Costs

Per

oz.(10)

Gold

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CC&V

$

157

 

$

8

 

$

8

 

$

 

$

1

 

$

 

$

42

 

$

216

 

135

 

$

1,603

Musselwhite

 

163

 

 

4

 

 

7

 

 

 

 

 

 

 

 

73

 

 

247

 

132

 

 

1,869

Porcupine

 

220

 

 

17

 

 

10

 

 

 

 

 

 

 

 

45

 

 

292

 

189

 

 

1,545

Éléonore

 

212

 

 

7

 

 

6

 

 

 

 

1

 

 

 

 

81

 

 

307

 

165

 

 

1,855

Peñasquito

 

123

 

 

6

 

 

1

 

 

 

 

 

 

7

 

 

24

 

 

161

 

103

 

 

1,569

Merian

 

269

 

 

5

 

 

9

 

 

 

 

 

 

 

 

63

 

 

346

 

219

 

 

1,580

Cerro Negro

 

232

 

 

4

 

 

3

 

 

 

 

2

 

 

 

 

33

 

 

274

 

176

 

 

1,556

Yanacocha

 

225

 

 

17

 

 

6

 

 

 

 

4

 

 

 

 

11

 

 

263

 

204

 

 

1,290

Boddington

 

483

 

 

14

 

 

3

 

 

 

 

 

 

14

 

 

97

 

 

611

 

588

 

 

1,039

Tanami

 

244

 

 

2

 

 

1

 

 

 

 

 

 

 

 

86

 

 

333

 

312

 

 

1,066

Ahafo

 

384

 

 

14

 

 

1

 

 

 

 

2

 

 

 

 

108

 

 

509

 

401

 

 

1,269

Akyem

 

189

 

 

29

 

 

1

 

 

1

 

 

 

 

 

 

29

 

 

249

 

198

 

 

1,260

Nevada Gold Mines

 

888

 

 

11

 

 

12

 

 

7

 

 

2

 

 

5

 

 

230

 

 

1,155

 

847

 

 

1,364

Corporate and Other (11)

 

 

 

 

 

55

 

 

181

 

 

4

 

 

 

 

24

 

 

264

 

 

 

Total Gold

$

3,789

 

$

138

 

$

123

 

$

189

 

$

16

 

$

26

 

$

946

 

$

5,227

 

3,669

 

$

1,425

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gold equivalent ounces - other metals (12)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Peñasquito

$

456

 

$

21

 

$

3

 

$

1

 

$

1

 

$

66

 

$

87

 

$

635

 

385

 

$

1,648

Boddington

 

151

 

 

2

 

 

1

 

 

 

 

 

 

11

 

 

31

 

 

196

 

190

 

 

1,033

Corporate and Other (11)

 

 

 

 

 

7

 

 

25

 

 

1

 

 

 

 

5

 

 

38

 

 

 

Total Gold Equivalent Ounces

$

607

 

$

23

 

$

11

 

$

26

 

$

2

 

$

77

 

$

123

 

$

869

 

575

 

$

1,511

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated

$

4,396

 

$

161

 

$

134

 

$

215

 

$

18

 

$

103

 

$

1,069

 

$

6,096

 

 

 

 

(1)

 

Excludes Depreciation and amortization and Reclamation and remediation.

(2)

 

Includes by-product credits of $91 and excludes co-product revenues of $772.

(3)

 

Includes stockpile, leach pad, and product inventory adjustments of $3 at Porcupine, $5 at Éléonore, $19 at Peñasquito, $2 at Cerro Negro, $4 at Yanacocha, $1 at Akyem, and $4 at NGM.

(4)

 

Beginning January 1, 2023, COVID-19 specific costs incurred in the ordinary course of business are recognized in Costs applicable to sales.

(5)

 

Reclamation costs include operating accretion and amortization of asset retirement costs of $74 and $87, 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 $111 and $113, respectively.

(6)

 

Advanced projects, research and development and exploration excludes development expenditures of $2 at CC&V, $5 at Porcupine, $5 at Peñasquito, $8 at Merian, $3 at Cerro Negro, $3 at Yanacocha, $19 at Tanami, $27 at Ahafo, $13 at Akyem, $13 at NGM, and $92 at Corporate and Other, totaling $190 related to developing new operations or major projects at existing operations where these projects will materially benefit the operation.

(7)

 

Other expense, net is adjusted for Newcrest transaction-related costs of $37, restructuring and severance of $19, impairment charges of $10, and settlement costs of $2.

(8)

 

Excludes capitalized interest related to sustaining capital expenditures. See Liquidity and Capital Resources within Part I, Item 2, Management's Discussion and Analysis for capital expenditures by segment.

(9)

 

Includes finance lease payments and other costs for sustaining projects of $55.

(10)

 

Per ounce measures may not recalculate due to rounding.

(11)

 

Corporate and Other includes the Company's business activities relating to its corporate and regional offices and all equity method investments. Refer to Note 3 of the Condensed Consolidated Financial Statements for further information.

(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 ($1,400/oz.), Copper ($3.50/lb.), Silver ($20.00/oz.), Lead ($1.00/lb.) and Zinc ($1.20/lb.) pricing for 2023.

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)(9)

 

All-In

Sustaining

Costs

 

Ounces

(000)

Sold

 

All-In

Sustaining

Costs Per

oz.(10)

Gold

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CC&V

$

165

 

$

11

 

$

6

 

$

 

 

$

4

 

$

 

$

30

 

$

216

 

130

 

$

1,661

Musselwhite

 

143

 

 

4

 

 

5

 

 

 

 

 

1

 

 

 

 

32

 

 

185

 

114

 

 

1,619

Porcupine

 

209

 

 

3

 

 

9

 

 

 

 

 

 

 

 

 

35

 

 

256

 

201

 

 

1,271

Éléonore

 

197

 

 

7

 

 

1

 

 

 

 

 

3

 

 

 

 

45

 

 

253

 

151

 

 

1,675

Peñasquito (11)

 

323

 

 

8

 

 

3

 

 

1

 

 

 

1

 

 

21

 

 

52

 

 

409