Skip to main content

Newmont Reports Fourth Quarter and Full Year 2023 Results; Provides 2024 Outlook for Integrated Company

`Newmont Corporation (NYSE: NEM, TSX: NGT, ASX: NEM, PNGX: NEM) (Newmont or the Company) today announced fourth quarter and full year 2023 results, as well as its 2024 outlook.

"2023 was a transformational year for Newmont, and for all of our stakeholders," said Tom Palmer, Newmont's President and Chief Executive Officer. "With the acquisition of Newcrest now complete, our principal focus for 2024 is to integrate and transform our leading portfolio of Tier 1 assets into a unique collection of the world's best gold and copper operations and projects. With stable production and structured reinvestment throughout the year, we are strongly positioned to deliver on our commitments in 2024 and set the stage for meaningful growth in 2025 and beyond."

2023 Results1

  • Completed the acquisition of Newcrest Mining Limited on November 6, 2023, creating the world’s leading gold company with robust copper optionality
  • Delivered $1.4 billion in dividends to shareholders in 2023
  • Produced 5.5 million gold ounces and 891 thousand gold equivalent ounces (GEOs)2 from copper, silver, lead and zinc; in-line with revised guidance range and incorporating the legacy Newcrest assets from the acquisition close date
  • Reported gold Costs Applicable to Sales (CAS) per ounce3 of $1,050 and gold All-In Sustaining Costs (AISC) per ounce3 of $1,444; in-line with revised guidance range and incorporating higher sustaining capital spend for 2023
  • Generated $2.8 billion of cash from continuing operations and reported $88 million in Free Cash Flow3 after unfavorable working capital changes of $513 million and $2.7 billion of reinvestment to sustain current operations and advance near-term projects
  • Reported Net Loss of $2.5 billion driven by $1.9 billion in impairment charges, $1.5 billion in reclamation charges and $464 million in Newcrest transaction and integration costs; these items are excluded from adjusted earnings results
  • Adjusted Net Income (ANI)3 of $1.61 per share and Adjusted EBITDA3 of $4.2 billion for the full year; fourth quarter ANI was $0.50 per share
  • Declared increased total Newmont reserves of 136 million gold ounces and resources of 174 million gold ounces4; significant upside to other metals, including copper, silver, lead and zinc

2024 Outlook5

  • Announced Newmont's go-forward Tier 1 Portfolio6, which is underpinned by eleven managed Tier 1 and Emerging Tier 1 assets and three non-managed operations; seeking to divest six non-core assets
  • 2024 production guidance is expected to be approximately 6.9 million gold ounces for the Total Newmont portfolio; underpinned by 5.6 million gold ounces from the Tier 1 Portfolio6
  • Gold CAS is expected to be $1,050 per ounce3, with Gold AISC of $1,400 per ounce3 in 2024 for the Total Newmont portfolio
  • Sustaining capital spend of approximately $1.8 billion for the Total Newmont portfolio
  • Development capital spend of approximately $1.3 billion in 2024 for the Total Newmont portfolio
  • Progressing key near-term development projects of Tanami Expansion 2, Ahafo North, Cadia Block Caves and Cerro Negro Expansion 1
  • Updated Tanami Expansion 2 development capital estimate of $1.7 to $1.8 billion with commercial production expected in the second half of 2027
  • Remain on track to deliver an expected $500 million in synergies related to the Newcrest transaction by the end of 20257

____________________

1 Newmont’s actual consolidated financial results remain subject to completion of our annual audit procedures for the year ended December 31, 2023 and final review by management. See notes at the end of this release.

2 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.

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

4 Total resources presented includes Measured and Indicated resources of 104.8 million gold ounces and Inferred resources of 69.1 million gold ounces. See cautionary statement at the end of this release.

5 See discussion of outlook, including the definition of the Tier 1 Portfolio, and cautionary statement at the end of this release regarding forward-looking statements.

6 Newmont’s go-forward portfolio is focused on Tier 1 assets, consisting of (1) six managed Tier 1 assets (Boddington, Tanami, Cadia, Lihir, Peñasquito and Ahafo), (2) assets owned through two non-managed joint ventures at Nevada Gold Mines and Pueblo Viejo, including four Tier 1 assets (Carlin, Cortez, Turquoise Ridge and Pueblo Viejo), (3) three emerging Tier 1 assets (Merian, Cerro Negro and Yanacocha), which do not currently meet the criteria for Tier 1 Asset, and (4) an emerging Tier 1 district in the Golden Triangle in British Columbia (Red Chris and Brucejack), which does not currently meet the criteria for Tier 1 Asset. Newmont’s Tier 1 portfolio also includes attributable production from the Company’s equity interest in Lundin Gold (Fruta del Norte). Tier 1 Portfolio cost and capital metrics include the proportional share of the Company’s interest in the Nevada Gold Mines joint venture.

7 Synergies are a management estimate provided for illustrative purposes and should not be considered a GAAP or non-GAAP financial measure. Synergies represent management’s combined estimate of pre-tax synergies, supply chain efficiencies and Full Potential improvements, as a result of the integration of Newmont’s and Newcrest’s businesses that have been monetized for the purposes of the estimation. Such estimates are necessarily imprecise and are based on numerous judgments and assumptions. See cautionary statement at the end of this release regarding forward-looking statements.

Summary of Fourth Quarter and Full Year Results

 

Q4'23

Q3'23

Q4'22

FY'23

FY'22

Average realized gold price ($ per ounce)

$

2,004

 

$

1,920

$

1,758

 

$

1,954

 

$

1,792

 

Attributable gold production (million ounces)1

 

1.74

 

 

1.29

 

 

1.63

 

 

5.55

 

 

5.96

 

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

$

1,086

 

$

1,019

 

$

940

 

$

1,050

 

$

933

 

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

$

1,485

 

$

1,426

 

$

1,215

 

$

1,444

 

$

1,211

 

GAAP attributable net (loss) income from continuing operations ($m)

$

(3,150

)

$

157

 

$

(1,488

)

$

(2,501

)

$

(459

)

Adjusted net income ($ millions)3

$

486

 

$

286

 

$

348

 

$

1,358

 

$

1,468

 

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

$

0.50

 

$

0.36

 

$

0.44

 

$

1.61

 

$

1.85

 

Adjusted EBITDA ($ millions)3

$

1,384

 

$

933

 

$

1,161

 

$

4,217

 

$

4,550

 

Cash flow from continuing operations ($ millions)

$

616

 

$

1,001

 

$

1,010

 

$

2,754

 

$

3,198

 

Capital expenditures ($ millions)4

$

920

 

$

604

 

$

646

 

$

2,666

 

$

2,131

 

Free cash flow ($ millions)5

$

(304

)

$

397

 

$

364

 

$

88

 

$

1,067

 

FOURTH QUARTER 2023 KEY RESULTS DRIVERS

In the fourth quarter, Newmont delivered a sequential improvement in production compared to the third quarter, primarily driven by the inclusion of the sites acquired in the Newcrest transaction combined with higher production at all Newmont managed operations except for Boddington, Yanacocha and CC&V due to planned mine sequencing. In addition, Newmont's non-managed operations at Nevada Gold Mines and Pueblo Viejo delivered higher production during the quarter. Notably, Peñasquito safely ramped up operations after a resolution of the labor strike was reached with the National Union of Mine and Metal Workers of the Mexican Republic ("the Union") on October 13, 2023.

Excluding the impact from the acquisition of Newcrest, direct operating costs were largely consistent with the third quarter as inflationary pressures have continued to stabilize, with improvements to commodity input pricing, partially offset by higher third party royalties due to higher gold prices. AISC was higher due to increased sustaining capital during the fourth quarter compared to the third quarter.

Cash Flow from Continuing Operations and Free Cash Flow were both lower than the third quarter at $616 million and $(304) million, respectively. This was primarily driven by unfavorable working capital changes of $297 million compared to the third quarter, including an unfavorable build of accounts receivable and the timing of accounts payable, as well as higher current cash tax and timing of debt interest payments. In addition, Newmont invested $920 million in capital spend during the fourth quarter, including $377 million in development capital spend to continue to progress near-term projects and $543 million in sustaining capital to progress site improvement projects.

Newmont reported a GAAP Net Loss from Continuing Operations of $(3.2) billion. Adjusted Net Income increased to $486 million or $0.50 per share, primarily driven by higher sales volumes and higher realized gold prices compared to the third quarter. Adjusted Net Income excludes significant non-cash accounting charges, primarily related to impairment charges of $1.9 billion recorded at year end in conjunction with the Company's annual impairment review and reclamation charges of $1.2 billion. In addition, Newmont incurred $427 million of costs related to the acquisition and integration of Newcrest.

  • $1.9 billion of impairment charges primarily due to the write-down of goodwill of $1.2 billion at Peñasquito, $293 million at Musselwhite and $246 million at Éléonore
    • The goodwill impairment at Peñasquito was driven by an update to the geological model that impacted expected metal grade and recoveries, resulting in lower underlying cash flows
    • The goodwill impairments at Musselwhite and Éléonore were driven by a deterioration in underlying cash flows as a result of higher costs due to inflationary pressures
    • The long-lived assets at all three sites were evaluated for impairment and no impairment was identified
    • The site-specific goodwill amounts originated from the Goldcorp purchase price allocation in 2019, which was based on best estimates of each site's value and country-risk assumptions at that time
  • $1.2 billion reclamation adjustment charges primarily at Yanacocha due to increased estimated water management costs
  • $427 million of Newcrest transaction and integration costs; primarily due to the accrual of $316 million in stamp duty tax incurred in connection with the transaction

Newmont intends to file its 2023 Form 10-K on or about the close of business on February 27, 2024.

FOURTH QUARTER 2023 FINANCIAL AND PRODUCTION SUMMARY

Attributable gold production1 for the fourth quarter increased 7 percent to 1,741 thousand ounces compared to the prior year quarter, primarily due to the addition of the Newcrest operations in November 2023. This favorable impact was partially offset by lower production at Peñasquito, Boddington and Akyem. Gold sales were slightly higher than production for the quarter primarily due to the timing of shipments at Cadia and Telfer.

Gold CAS totaled $1.9 billion for the quarter. Gold CAS per ounce2 increased 16 percent to $1,086 per ounce compared to the prior year quarter, primarily due to higher direct operating costs incurred at the Newcrest sites after the acquisition, including at Brucejack and Telfer as operations at both sites were temporarily suspended for a portion of December, as well as higher costs incurred at Nevada Gold Mines due to leach pad write-downs and at Merian and Cerro Negro due to increased inflationary pressures on labor and consumables costs. These increases were partially offset by lower costs incurred at Peñasquito as the site ramped up to full productivity in the fourth quarter of 2023 after the resolution of the labor strike in October 2023.

Gold AISC per ounce2 increased 22 percent to $1,485 per ounce compared to the prior year quarter, primarily due to higher CAS per ounce and higher sustaining capital spend.

Attributable GEO production from other metals for the quarter remained largely flat at 289 thousand ounces from the prior year quarter, primarily due to the addition of copper production from Cadia, Red Chris and Telfer, partially offset by the ramp-up of production at Peñasquito after the resolution of the labor strike. Other metal GEO sales were slightly higher than production for the quarter, primarily due to the timing of shipments at Cadia and Telfer.

CAS from other metals totaled $403 million for the quarter. CAS per GEO2 increased 46 percent to $1,254 per ounce from the prior year quarter, primarily due to a higher allocation of costs to co-product metals with the addition of co-product production at Cadia, Red Chris and Telfer.

AISC per GEO2 for the quarter increased 46 percent to $1,697 per ounce from the prior year quarter, primarily due to higher CAS from other metals, higher sustaining capital spend and higher treatment and refining costs.

Average realized gold price for the quarter increased $246 per ounce to $2,004 per ounce compared to the prior year quarter, including $2,003 per ounce of gross price received, the favorable impact of $13 per ounce mark-to-market on provisionally-priced sales and $12 per ounce reductions for treatment and refining charges.

Revenue for the quarter increased 24 percent to $4.0 billion compared to the prior year quarter, primarily due to higher sales volumes and higher realized gold prices.

Net loss from continuing operations attributable to Newmont stockholders for the quarter was $(3.2) billion or $(3.22) per diluted share, a decrease of $1.7 billion from the prior year quarter, primarily due to higher impairment charges recognized primarily related to the write-off of goodwill at Peñasquito, Musselwhite and Éléonore, as well as higher reclamation and remediation expense resulting from adjustments mainly related to non-operating Yanacocha sites.

Adjusted net income3 for the quarter was $486 million or $0.50 per diluted share compared to $348 million or $0.44 per diluted share in the prior year quarter. Primary adjustments to fourth quarter net income include reclamation and remediation adjustments of $1.2 billion, total impairment charges of $1.9 billion, and Newcrest transaction and integration costs of $427 million.

Adjusted EBITDA3 for the quarter increased 19 percent to $1.4 billion for the quarter compared to $1.2 billion for the prior year quarter.

Capital expenditures4 increased 42 percent to $920 million for the quarter compared to prior year quarter, primarily due to higher sustaining capital spend as well as slightly higher development capital spend.

Consolidated operating cash flow from continuing operations decreased 39 percent to $616 million for the quarter compared to the prior year quarter, primarily due to the impact of the Peñasquito strike, which was partially offset by higher average realized gold prices.

Free Cash Flow5 decreased to $(304) million for the quarter compared to the prior year quarter, primarily due to lower operating cash flow and higher capital expenditures.

Nevada Gold Mines (NGM)6 attributable gold production for the quarter was 322 thousand ounces, with CAS of $1,125 per ounce2 and AISC of $1,482 per ounce2.

Pueblo Viejo (PV)7 attributable gold production was 61 thousand ounces for the quarter. Cash distributions received from the Company's equity method investment in Pueblo Viejo were $8 million for the fourth quarter. Capital contributions of $16 million for the quarter were made related to the expansion project at Pueblo Viejo.

Fruta del Norte8 attributable gold production is reported on a quarterly lag and will not be reported until the first quarter of 2024. Cash distributions received from the Company's equity method investment in Fruta del Norte were $6 million for the fourth quarter.

FULL YEAR 2023 FINANCIAL AND PRODUCTION SUMMARY

Attributable gold production1 for the year decreased 7 percent to 5,545 thousand ounces compared to the prior year, primarily due to lower production at Peñasquito, Akyem, Merian and Boddington. In addition, the non-managed joint venture at Pueblo Viejo delivered lower production than in the prior year. These unfavorable impacts were partially offset by the addition of the Newcrest operations in November 2023. Gold sales were largely in line with production for the year.

Gold CAS totaled $5.7 billion for the year. Gold CAS per ounce2 increased 13 percent to $1,050 per ounce compared to the prior year, primarily due to lower gold sales volumes, higher maintenance costs and higher materials, labor and contract services costs. These increases were partially offset by lower costs incurred at Peñasquito during the labor strike and lower profit-sharing in 2023 due to lower taxable income at the site.

Gold AISC per ounce2 increased 19 percent to $1,444 per ounce compared to the prior year, primarily due to higher CAS per ounce and higher sustaining capital spend.

Attributable GEO production from other metals for the year decreased 30 percent to 891 thousand ounces compared to the prior year, primarily due to the Peñasquito labor strike in 2023, partially offset by the addition of copper production from Cadia, Red Chris and Telfer. Other metal GEO sales were largely in line with production for the year.

CAS from other metals totaled $1.0 billion for the year. CAS per GEO2 increased 38 percent to $1,127 per ounce from the prior year, primarily due to lower sales volumes as a result of the Peñasquito labor strike in 2023.

AISC per GEO2 for the year increased 42 percent to $1,577 per ounce from the prior year, primarily due to lower sales volumes as a result of the Peñasquito labor strike in 2023 and higher sustaining capital spend.

Average realized gold price for the year increased $162 per ounce to $1,954 per ounce compared to the prior year, including $1,957 per ounce of gross price received, the favorable impact of $6 per ounce mark-to-market on provisionally-priced sales and $9 per ounce reductions for treatment and refining charges.

Revenue for the year remained largely flat at $11.8 billion compared to $11.9 billion for the prior year.

Net loss from continuing operations attributable to Newmont stockholders for the year was $(2.5) billion or $(2.97) per diluted share, a decrease of $2.0 billion from the prior year primarily due to higher impairment charges, higher reclamation and remediation expense resulting from adjustments, primarily related to non-operating Yanacocha sites, the impact of the Peñasquito labor strike, and the Newcrest transaction and integration costs, including the accrual of a stamp duty tax of $316 million. These decreases were partially offset by higher average realized prices for gold, silver and copper.

Adjusted net income3 for the year was $1.4 billion or $1.61 per diluted share compared to $1.5 billion or $1.85 per diluted share in the prior year. Primary adjustments to 2023 net income include total impairment charges of $1.9 billion, reclamation and remediation adjustments of $1.3 billion, and Newcrest transaction and integration costs of $464 million.

Adjusted EBITDA3 for the year decreased 7 percent to $4.2 billion, compared to $4.6 billion for the prior year.

Capital expenditures4 increased 25 percent to $2.7 billion for the full year compared to prior year, primarily due to higher sustaining capital spend as well as slightly higher development capital spend. Development capital expenditures in 2023 primarily related to Tanami Expansion 2, Yanacocha Sulfides, Ahafo North, Cerro Negro District Expansion 1, Pamour, Cadia Block Caves, and the TS Solar Plant and Goldrush Complex at Nevada Gold Mines.

Consolidated operating cash flow from continuing operations decreased 14 percent to $2.8 billion for the full year compared to the prior year, primarily due to the impact of the Peñasquito strike and lower sales volumes at Akyem. These impacts were partially offset by income provided by the newly acquired sites and higher average realized gold, silver and copper prices.

Free Cash Flow5 decreased to $88 million for the full year compared to $1.1 billion for the prior year, primarily due to lower operating cash flow and higher capital expenditures.

Balance sheet and liquidity remained strong in 2023, ending the year with $3.0 billion of consolidated cash, with approximately $6.1 billion of total liquidity; reported net debt to adjusted EBITDA of 1.1x9.

Nevada Gold Mines (NGM)7 attributable gold production for the year was 1,170 thousand ounces, with CAS of $1,070 per ounce2 and AISC of $1,397 per ounce2.

Pueblo Viejo (PV)8 attributable gold production was 224 thousand ounces for the year. Cash distributions received from the Company's equity method investment in Pueblo Viejo were $106 million for the year. Capital contributions of $97 million for the year were made related to the expansion project at Pueblo Viejo.

____________________

1 Attributable gold production includes 61 thousand ounces for the fourth quarter of 2023, 52 thousand ounces for the third quarter of 2023, 65 thousand ounces for the fourth quarter of 2022, 224 thousand ounces for the year ended December 31, 2023 and 285 thousand ounces for the year ended December 31, 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.

7 Newmont has a 40% interest in Pueblo Viejo, which is accounted for as an equity method investment.

8 Newmont has a 32% interest in Lundin Gold, who wholly owns and operates the Fruta del Norte mine, which is accounted for on a quarterly-lag as an equity method investment.

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

Disciplined Reinvestment into Key Near-Term Projects

Newmont’s project pipeline supports stable production with improving margins and mine life1. Newmont's 2024 outlook includes current development capital costs and production related to Tanami Expansion 2, Ahafo North, Cadia Block Caves and Cerro Negro District Expansion 1.

  • Ahafo North (Ghana) 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 (2026 - 2030). Ahafo North is the best unmined gold deposit in West Africa with approximately 4.1 million ounces of Reserves and 1.3 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 $375 million, of which $163 million related to 2023.
  • Cadia Block Caves (Australia) includes two existing panel caves to recover approximately 5.9 million ounces of Gold Reserves as well as 1.3 million tonnes of Copper Reserves. First ore has been delivered from the first panel cave (PC2-3), and development is underway at the second panel cave (PC1-2). The newly-acquired project is currently under review, and a more fulsome update on the anticipated metrics is expected to be provided in the second half of 2024. Development capital costs (excluding capitalized interest) since approval were $36 million, of which all related to 2023.
  • Cerro Negro District Expansion 1 (Argentina) 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.
  • 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 30 percent, bringing average all-in sustaining costs to $900 to $1,000 per ounce for Tanami (2028 - 2032). As a result of the identification of required overbreak and underbreak remediation, commercial production for the project is now expected in the second half of 2027. Total capital costs are now estimated to be between $1.7 and $1.8 billion, incorporating the required remediation work. Development costs (excluding capitalized interest) since approval were $752 million, of which $253 million related to 2023.

____________________

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 1 million gold ounces and Inferred resources of 300 thousand gold ounces. See cautionary statement at the end of this release.

2024 Outlook Underpinned by Optimized Tier 1 Portfolio

Based on a comprehensive review undertaken following the Newcrest acquisition, Newmont’s Board of Directors and senior leadership team have identified the Tier 1 Portfolio which is expected to generate the most value over the long-term. Newmont’s go-forward portfolio is focused on Tier 1 assets, consisting of (1) six managed Tier 1 assets (Boddington, Tanami, Cadia, Lihir, Peñasquito and Ahafo), (2) assets owned through two non-managed joint ventures at Nevada Gold Mines and Pueblo Viejo, including four Tier 1 assets (Carlin, Cortez, Turquoise Ridge and Pueblo Viejo), (3) three emerging Tier 1 assets (Merian, Cerro Negro and Yanacocha), which do not currently meet the criteria for Tier 1 Asset, and (4) an emerging Tier 1 district in the Golden Triangle in British Columbia (Red Chris and Brucejack), which does not currently meet the criteria for Tier 1 Asset. Newmont’s Tier 1 portfolio also includes attributable production from the Company’s equity interest in Lundin Gold (Fruta del Norte). Tier 1 Portfolio cost and capital metrics include the proportional share of the Company’s interest in the Nevada Gold Mines Joint Venture. As part of Newmont’s portfolio optimization, the company is seeking to divest six non-core assets: Akyem, CC&V, Éléonore, Porcupine, Musselwhite, and Telfer. In addition, Newmont expects to divest the Coffee project in Canada and the Havieron project in Australia.

PRODUCTION AND COST OUTLOOK

Guidance Metric

2024E

Attributable Gold Production (Koz)

Managed Tier 1 Portfolio

4,100

Non-Managed Tier 1 Portfolio

1,530

Total Tier 1 Portfolio

5,630

Non-Core Assets

1,300

Total Newmont Attributable Gold Production (Koz)

6,930

Attributable Gold CAS ($/oz)

Managed Tier 1 Portfolio

980

Non-Managed Tier 1 Portfolio

1,130

Total Tier 1 Portfolio

1,000

Non-Core Assets

1,400

Total Newmont Gold CAS ($/oz)*

1,050

Attributable Gold AISC ($/oz)

Managed Tier 1 Portfolio

1,250

Non-Managed Tier 1 Portfolio

1,440

Total Tier 1 Portfolio

1,300

Non-Core Assets

1,750

Total Newmont Gold AISC ($/oz)*

1,400

*Consolidated basis

Newmont's 2024 outlook is supported by steady production from Newmont's managed Tier 1 and Emerging Tier 1 assets, and is further enhanced by the Company’s ownership in the Nevada Gold Mines and Pueblo Viejo joint ventures. These assets form the core of Newmont's 2024 attributable production outlook for the Tier 1 Portfolio of approximately 5.6 million ounces. Total Newmont gold production is expected to be 6.9 million ounces, incorporating the incremental 1.3 million ounces from the six non-core assets.

Costs in 2024 are expected to remain in line with 2023, with CAS of approximately of $1,000 per ounce for the Tier 1 Portfolio. AISC for the Tier 1 Portfolio is expected to be approximately $1,300 per ounce in 2024, incorporating higher sustaining capital spend compared to the prior year.

2024 GOLD PRODUCTION SEASONALITY OUTLOOK

H1 2024E

H2 2024E

47%

53%

Gold production for 2024 is expected to be approximately 47% weighted to the first half of the year. The increase in production in the second half of the year is expected to be driven by Ahafo and Tanami as well as the non-managed Nevada Gold Mines and Pueblo Viejo operations.

CO-PRODUCT PRODUCTION AND COST OUTLOOK

Guidance Metric

2024E

Copper ($8,818/tonne price assumption)*

 

Copper Production - Tier 1 Portfolio (ktonne)

144

Copper Production - Non-Core Assets (ktonne)

8

Total Newmont Copper Production (ktonne)

152

Copper CAS - Tier 1 Portfolio ($/tonne)

$5,050

Copper CAS - Non-Core Assets ($/tonne)

$11,050

Total Newmont Copper CAS ($/tonne)**

$5,530

Copper AISC - Tier 1 Portfolio ($/tonne)

$7,650

Copper AISC - Non-Core Assets ($/tonne)

$12,540

Total Newmont Copper AISC ($/tonne)**

$7,380

Silver ($23.00/oz price assumption)

 

Silver Production (Moz)

34

Silver CAS ($/oz)**

$11.00

Silver AISC ($/oz)**

$15.40

Lead ($2,205/tonne price assumption)*

 

Lead Production (ktonne)

95

Lead CAS ($/tonne)**

$1,220

Lead AISC ($/tonne)**

$1,570

Zinc ($2,976/tonne price assumption)*

 

Zinc Production (ktonne)

245

Zinc CAS ($/tonne)**

$1,550

Zinc AISC ($/tonne)**

$2,300

*Co-product metal pricing assumptions in imperial units equate to Copper ($4.00/lb.), Lead ($1.00/lb.) and Zinc ($1.35/lb.).

**Consolidated basis

In 2024, the addition of Cadia and Red Chris from the acquisition of Newcrest is expected to increase Newmont's Tier 1 Portfolio copper production. This will be partially offset by lower copper production expected from Boddington as the site progresses laybacks in 2024. In addition, Peñasquito is expected to deliver higher co-product production due to higher silver, lead and zinc content from the Chile Colorado pit.

Refer to the 2024 Production and Cost Outlook by Site below for additional details.

CAPITAL OUTLOOK

Guidance Metric

2024E

Sustaining Capital ($M)

Managed Tier 1 Portfolio

1,210

Non-Managed Tier 1 Portfolio

290

Total Tier 1 Portfolio

1,500

Non-Core Assets

300

Total Newmont Sustaining Capital*

1,800

Development Capital ($M)

Managed Tier 1 Portfolio

1,070

Non-Managed Tier 1 Portfolio

130

Total Tier 1 Portfolio

1,200

Non-Core Assets

100

Total Newmont Development Capital*

1,300

*Sustaining capital is presented on an attributable basis; Capital outlook excludes amounts attributable to the Pueblo Viejo joint venture

Sustaining capital is expected to be approximately $1.5 billion in 2024 for the Tier 1 Portfolio, covering key tailings management, water and infrastructure projects, equipment and ongoing mine development. Total Newmont sustaining capital is expected to be approximately $1.8 billion in 2024, incorporating incremental spend at the six non-core assets.

Development capital is expected to be approximately $1.2 billion in 2024 for the Tier 1 Portfolio, as the Company focuses on disciplined reinvestment in its most profitable near-term projects. 2024 outlook primarily includes spend for Tanami Expansion 2 in Australia, Ahafo North in Ghana, Cadia Block Caves in Australia and Cerro Negro District Expansion 1 in Argentina. In addition, development capital outlook includes spend related to the Company’s ownership interest in Nevada Gold Mines including Goldrush. Total Newmont development capital is expected to be approximately $1.3 billion in 2024, incorporating incremental spend for the Pamour project at Porcupine.

Development capital estimates exclude contributions to support Newmont’s 40% interest in the Pueblo Viejo expansion, which is accounted for as an equity method investment.

EXPLORATION AND ADVANCED PROJECTS OUTLOOK

Guidance Metric

2024E

Exploration & Advanced Projects ($M)

$450

In 2024, investment in exploration and advanced projects is expected to decrease to approximately $450 million as Newmont focuses primarily on extending mine life at existing operations and continuing to build reserves. Newmont expects to invest approximately $300 million dollars in exploration expense to progress organic growth around existing operations and brownfields and greenfields exploration projects, including Apensu and Subika Underground (Ahafo South), East Ridge (Red Chris) and Oberon (Tanami). In addition, Newmont expects to invest approximately $150 million in advanced projects spend associated with advancing studies on its robust pipeline of projects, including Galore Creek.

CONSOLIDATED EXPENSE OUTLOOK

Guidance Metric

2024E

General & Administrative ($M)

$300

Interest Expense ($M)

$365

Depreciation & Amortization ($M)

$2,850

Adjusted Tax Rate a,b

34%

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

b Assuming average prices of $1,900 per ounce for gold, $4.00 per pound for copper, $23.00 per ounce for silver, $1.00 per pound for lead, and $1.35 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 2024 will be 34%.

The 2024 outlook for general and administrative costs is expected to increase slightly to $300 million as Newmont continues integration work after the Newcrest transaction. Interest expense is expected to increase to approximately $365 million due to the debt assumed from the Newcrest transaction. Depreciation and amortization is expected to increase to approximately $2.9 billion for the combined portfolio. The adjusted tax rate is expected to remain stable at approximately 34 percent using a $1,900 per ounce gold price assumption.

ASSUMPTIONS AND SENSITIVITIES

 

Assumption

Change (-/+)

Revenue and Cost Impact ($M)**

 

 

 

Tier 1 Portfolio

Total Newmont

Gold ($/oz)

$1,900

$100

$550

$675

Australian Dollar

$0.70

$0.05

$150

$190

Canadian Dollar

$0.75

$0.05

$40

$100

Oil ($/bbl)

$90

$10

$60

$80

Copper ($/tonne)*

$8,818

$550

$80

$90

Silver ($/oz)

$23.00

$1.00

$35

$35

Lead ($/tonne)*

$2,205

$220

$20

$20

Zinc ($/tonne)*

$2,976

$220

$55

$55

*Co-product metal pricing assumptions in imperial units equate to Copper ($4.00/lb.), Lead ($1.00/lb.) and Zinc ($1.35/lb.).

** Impacts are presented on a pretax basis.

Assuming a 34 percent incremental tax rate, a $100 per ounce increase in gold price would deliver an expected $675 million improvement in revenue. Included within the sensitivity is a royalty and production tax impact of $5 per ounce for every $100 per ounce change in gold price.

2024 Production and Cost Outlook by Site

Managed Tier 1 Portfolio

Boddington

2024E

Production

CAS ($/unit)

AISC ($/unit)

Gold (Koz)

575

$1,150

$1,420

Copper (ktonne)

37

$6,020

$7,600

Gold production at Boddington is expected to decrease in 2024 due to lower grade ore as the site progresses the current laybacks in the North and South pits, positioning the site to increase production in 2026 and beyond. Copper production will also be impacted in 2024 due to lower grade as a result of the increased stripping.

Gold and copper unit costs at Boddington are expected to increase in 2024 due to lower production volumes.

Tanami

2024E

Production (Koz)

CAS ($/oz)

AISC ($/oz)

Gold

400

$900

$1,430

Tanami production is expected to decrease in 2024 due to lower grade from deeper in the underground mine as the site continues to progress the Tanami Expansion 2 project.

Tanami unit costs are expected to be impacted by lower production volumes and higher direct costs. In addition, AISC is expected to increase due to higher sustaining capital spend.

Cadia

2024E

Production

CAS ($/unit)

AISC ($/unit)

Gold (Koz)

370

$620

$1,150

Copper (ktonne)

80

$3,600

$6,580

Cadia was acquired on November 6, 2023 through the Newcrest transaction. In 2024, the site is focused on integration, safe operations and Full Potential initiatives to deliver synergies. Underground development continues on the next block caves in the mine plan, along with a tailings expansion to set up the next decade of ore feed.

Lihir

2024E

Production (Koz)

CAS ($/oz)

AISC ($/oz)

Gold

630

1,050

1,270

Lihir was acquired on November 6, 2023 through the Newcrest transaction. In 2024, the site is well-positioned to deliver Full Potential synergies and progress waste stripping to access high-grade material from the Kapit orebody.

Ahafo

2024E

Production (Koz)

CAS ($/oz)

AISC ($/oz)

Gold

725

$860

$1,060

Ahafo production is expected to increase in 2024 due to higher open pit grade and strong underground mining rates at Subika. The site remains on track to reach full processing rates by the end of the second quarter of 2024 after the planned delivery of the replacement girth gear.

Ahafo unit costs are expected to improve in 2024 due to higher production volumes.

Peñasquito

2024E

Production

CAS ($/unit)

AISC ($/unit)

Gold (Koz)

250

$780

1,030

Silver (Moz)

34

$11.00

$15.40

Lead (ktonne)

95

$1,220

$1,570

Zinc (ktonne)

245

$1,550

$2,300

Gold production at Peñasquito is expected to increase in 2024, as operations have fully ramped up following the successful resolution of the strike in October 2023. This increase is partially offset by a change in mine plan as the site continues to progress stripping in the Peñasco pit throughout 2024.

Co-product production at Peñasquito is expected to increase in 2024 due to higher silver, lead and zinc content delivered from the Chile Colorado pit as part of the planned sequence at this polymetallic mine.

Unit costs at Peñasquito are expected to improve due to higher production volumes for all metals from a full year of operations.

Cerro Negro

2024E

Production (Koz)

CAS ($/oz)

AISC ($/oz)

Gold

290

$860

$1,110

Cerro Negro production is expected to increase in 2024 due to higher grade ore and throughput as the site benefits from the continued Cerro Negro Expansion project.

Cerro Negro unit costs are expected to improve due to higher production volumes and lower direct costs. In addition, AISC is expected to benefit from lower sustaining capital spend.

Yanacocha

2024E

Production (Koz)

CAS ($/oz)

AISC ($/oz)

Gold

290

$1,180

$1,370

Yanacocha continues to deliver leach-only production, with increased production expected in 2024 due to higher leach recoveries from the use of injection leaching.

Yanacocha unit costs are expected to be higher in 2024 due to higher direct costs and unfavorable inventory changes, with AISC also expected to be impacted by higher advanced projects spend.

Merian

2024E

Production (Koz)

CAS ($/oz)

AISC ($/oz)

Gold

220

$1,280

$1,570

Merian is expected to deliver lower production in 2024 due to lower mill head grade and throughput.

Merian unit costs are expected to be impacted by lower production volumes due to planned mine sequencing.

Brucejack

2024E

Production (Koz)

CAS ($/oz)

AISC ($/oz)

Gold

310

$1,130

$1,370

Brucejack was acquired on November 6, 2023 through the Newcrest transaction. Following a tragic fatality on December 20, 2023, Newmont suspended mining operations at the site to conduct a full investigation into the incident. The site ramped up to full operations by the end of January 2024. In 2024, the site is focused on the integration and implementation of Newmont's Fatality Risk Management program which are designed to ensure safe operations, as well as Newmont's Full Potential program to deliver synergies.

Red Chris

2024E

Production

CAS ($/unit)

AISC ($/unit)

Gold (Koz)

40

$1,120

$1,530

Copper (ktonne)

27

$6,440

$9,570

Red Chris was acquired on November 6, 2023 through the Newcrest transaction. In 2024, the site is focused on safe and efficient gold and copper production and embedding Full Potential initiatives to optimize the current operation.

Non-Managed Tier 1 Portfolio

Nevada Gold Mines (NGM)

2024E

Production (Koz)

CAS ($/oz)

AISC ($/oz)

Gold

1,080

$1,130

$1,440

Production, CAS and AISC for the Company’s 38.5 percent ownership interest in NGM as provided by Barrick Gold Corporation.

Pueblo Viejo

2024E

Production (Koz)

Gold

300

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

Fruta Del Norte

2024E

Production (Koz)

Gold

150

Attributable production reflects Newmont's 32 percent interest in Lundin Gold, who wholly owns and operates the Fruta del Norte mine, which is accounted for on a quarterly-lag as an equity method investment. As a result, results of operations will be not be reported until the first quarter of 2024.

2024 Site Outlooka

2024 Outlook

Consolidated

Production (Koz)

Attributable

Production (Koz)

Consolidated CAS

($/oz)

Consolidated

All-In Sustaining

Costs b ($/oz)

Attributable

Sustaining Capital

Expenditures ($M)

Attributable

Development

Capital

Expenditures ($M)

Managed Tier 1 Portfolio

 

 

 

 

 

 

Boddington

575

575

1,150

1,420

145

Tanami

400

400

900

1,430

170

340

Cadia

370

370

620

1,150

305

260

Lihir

630

630

1,050

1,270

105

Ahafo

725

725

860

1,060

110

Ahafo North

290

Peñasquito

250

250

780

1,030

145

Cerro Negro

290

290

860

1,110

50

130

Yanacocha

290

290

1,180

1,370

25

50

Merianc

295

220

1,280

1,570

40

Brucejack

310

310

1,130

1,370

50

Red Chris

40

40

1,120

1,530

65

 

 

 

 

 

 

 

Non-Managed Tier 1 Portfolio

 

 

 

 

 

 

Nevada Gold Minesd

1,080

1,080

1,130

1,440

290

130

Pueblo Viejoe

300

Fruta Del Nortef

150

 

 

 

 

 

 

 

Non-Core Assets

 

 

 

 

 

 

Telfer

230

230

2,180

2,470

35

Akyem

170

170

1,780

2,100

15

CC&V

170

170

1,270

1,610

25

Porcupine

270

270

1,090

1,510

75

100

Éléonore

270

270

1,080

1,500

75

Musselwhite

190

190

1,060

1,620

75

 

 

 

 

 

 

 

Co-Product Production

 

 

 

 

 

 

Boddington - Copper (ktonne)

37

37

6,020

7,600

Cadia - Copper (ktonne)

80

80

3,600

6,580

Peñasquito - Silver (Moz)

34

34

11.00

15.40

Peñasquito - Lead (ktonne)

95

95

1,220

1,570

Peñasquito - Zinc (ktonne)

245

245

1,550

2,300

Red Chris - Copper (ktonne)

27

27

6,440

9,570

Telfer - Copper (ktonne)

8

8

11,050

12,540

a 2024 outlook projections are considered forward-looking statements and represent management’s good faith estimates or expectations of future production results as of February 22, 2024. Outlook is based upon certain assumptions, including, but not limited to, metal prices, oil prices, certain exchange rates and other assumptions. For example, 2024 Outlook assumes $1,900/oz Au, $8,818/tonne Cu, $23.00/oz Ag, $2,976/tonne Zn, $2,205/tonne Pb, $0.70 AUD/USD exchange rate, $0.75 CAD/USD exchange rate and $90/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 at the end of this release.

b 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 2024 CAS outlook.

c Consolidated production for Merian is presented on a total production basis for the mine site; attributable production represents a 75% interest for Merian.

d Represents the ownership interest in the Nevada Gold Mines (NGM) joint venture. NGM is owned 38.5% by Newmont and owned 61.5% and operated by Barrick. The Company accounts for its interest in NGM using the proportionate consolidation method, thereby recognizing its pro-rata share of the assets, liabilities and operations of NGM.

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

f Attributable production includes Newmont’s 32% interest in Lundin Gold, who wholly owns and operates the Fruta del Norte mine, which is accounted for as an equity method investment on a quarterly-lag.

 

Three Months Ended December 31,

 

Year Ended December 31,

Operating Results

2023

2022

% Change

 

2023

2022

% Change

Attributable Sales (koz)

 

 

 

 

 

 

 

Attributable gold ounces sold (1)

 

1,726

 

1,581

9 %

 

 

5,340

 

5,696

(6) %

Attributable gold equivalent ounces sold

 

321

 

311

3 %

 

 

896

 

1,275

(30) %

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

Average realized gold price

$

2,004

$

1,758

14 %

 

$

1,954

$

1,792

9 %

Average realized copper price

$

3.69

$

4.12

(10) %

 

$

3.71

$

3.69

1 %

Average realized silver price

$

19.45

$

20.42

(5) %

 

$

19.97

$

18.45

8 %

Average realized lead price

$

0.90

$

0.87

3 %

 

$

0.90

$

0.91

(1) %

Average realized zinc price

$

3.71

$

1.12

231 %

 

$

0.96

$

1.34

(28) %

 

 

 

 

 

 

 

 

Attributable Production (koz)

 

 

 

 

 

 

 

CC&V

 

38

 

57

(33) %

 

 

172

 

182

(5) %

Musselwhite

 

50

 

58

(14) %

 

 

180

 

173

4 %

Porcupine

 

70

 

79

(11) %

 

 

260

 

280

(7) %

Éléonore

 

68

 

67

1 %

 

 

232

 

215

8 %

Red Chris

 

5

 

— %

 

 

5

 

— %

Brucejack

 

29

 

— %

 

 

29

 

— %

Peñasquito

 

20

 

126

(84) %

 

 

143

 

566

(75) %

Merian (75%)

 

78

 

90

(13) %

 

 

242

 

302

(20) %

Cerro Negro

 

83

 

69

20 %

 

 

269

 

278

(3) %

Yanacocha (2)

 

68

 

58

17 %

 

 

276

 

230

20 %

Boddington

 

156

 

209

(25) %

 

 

745

 

798

(7) %

Tanami

 

136

 

129

5 %

 

 

448

 

484

(7) %

Cadia

 

97

 

— %

 

 

97

 

— %

Telfer

 

43

 

— %

 

 

43

 

— %

Lihir

 

134

 

— %

 

 

134

 

— %

Ahafo

 

183

 

177

3 %

 

 

581

 

574

1 %

Akyem

 

100

 

122

(18) %

 

 

295

 

420

(30) %

NGM

 

322

 

324

(1) %

 

 

1,170

 

1,169

— %

Total Gold (excluding equity method investments)

 

1,680

 

1,565

7 %

 

 

5,321

 

5,671

(6) %

Pueblo Viejo (40%) (3)

 

61

 

65

(6) %

 

 

224

 

285

(21) %

Fruta Del Norte (32%) (4)

 

 

— %

 

 

 

— %

Total Gold Attributable Production

 

1,741

 

1,630

7 %

 

 

5,545

 

5,956

(7) %

 

 

 

 

 

 

 

 

Red Chris

 

20

 

— %

 

 

20

 

— %

Peñasquito

 

116

 

229

(49) %

 

 

529

 

1,048

(50) %

Boddington

 

56

 

67

(16) %

 

 

245

 

227

8 %

Cadia

 

90

 

— %

 

 

90

 

— %

Telfer

 

7

 

— %

 

 

7

 

— %

Total GEO Attributable Production

 

289

 

296

(2) %

 

 

891

 

1,275

(30) %

 

 

 

 

 

 

 

 

CAS Consolidated ($/oz, $/GEO)

 

 

 

 

 

 

 

CC&V

$

1,122

$

1,390

(19) %

 

$

1,156

$

1,302

(11) %

Musselwhite

$

1,068

$

892

20 %

 

$

1,186

$

1,135

4 %

Porcupine

$

1,186

$

918

29 %

 

$

1,167

$

1,004

16 %

Éléonore

$

1,224

$

1,050

17 %

 

$

1,263

$

1,228

3 %

Red Chris

$

905

$

— %

 

$

905

$

— %

Brucejack

$

1,898

$

— %

 

$

1,898

$

— %

Peñasquito

$

1,306

$

722

81 %

 

$

1,219

$

771

58 %

Merian (75%)

$

1,155

$

837

38 %

 

$

1,207

$

915

32 %

Cerro Negro

$

1,132

$

1,067

6 %

 

$

1,257

$

1,007

25 %

Yanacocha (2)

$

975

$

1,639

(41) %

 

$

1,069

$

1,254

(15) %

Boddington

$

941

$

816

15 %

 

$

847

$

802

6 %

Tanami

$

702

$

768

(9) %

 

$

759

$

675

12 %

Cadia

$

1,079

$

— %

 

$

1,079

$

— %

Telfer

$

1,882

$

— %

 

$

1,882

$

— %

Lihir

$

1,117

$

— %

 

$

1,117

$

— %

Ahafo

$

924

$

1,002

(8) %

 

$

947

$

990

(4) %

Akyem

$

877

$

977

(10) %

 

$

931

$

804

16 %

NGM

$

1,125

$

934

20 %

 

$

1,070

$

989

8 %

Total Gold CAS (5)

$

1,086

$

940

16 %

 

$

1,050

$

933

13 %

Total Gold CAS (by-product) (5)

$

1,060

$

876

21 %

 

$

1,011

$

855

18 %

 

 

 

 

 

 

 

 

Red Chris

$

1,020

$

— %

 

$

1,020

$

— %

Peñasquito

$

1,602

$

866

85 %

 

$

1,283

$

828

55 %

Boddington

$

944

$

823

15 %

 

$

830

$

782

6 %

Cadia

$

1,017

$

— %

 

$

1,017

$

— %

Telfer

$

1,703

$

— %

 

$

1,703

$

— %

Total GEO CAS

$

1,254

$

857

46 %

 

$

1,127

$

819

38 %

 

 

 

 

 

 

 

 

AISC Consolidated ($/oz, $/GEO)

 

 

 

 

 

 

 

CC&V

$

1,793

$

1,783

1 %

 

$

1,644

$

1,697

(3) %

Musselwhite

$

1,771

$

1,355

31 %

 

$

1,843

$

1,531

20 %

Porcupine

$

1,665

$

1,188

40 %

 

$

1,577

$

1,248

26 %

Éléonore

$

1,796

$

1,426

26 %

 

$

1,838

$

1,599

15 %

Red Chris

$

1,439

$

— %

 

$

1,439

$

— %

Brucejack

$

2,646

$

— %

 

$

2,646

$

— %

Peñasquito

$

1,659

$

884

88 %

 

$

1,587

$

968

64 %

Merian (75%)

$

1,454

$

1,043

39 %

 

$

1,541

$

1,105

39 %

Cerro Negro

$

1,412

$

1,300

9 %

 

$

1,509

$

1,262

20 %

Yanacocha (2)

$

1,198

$

1,833

(35) %

 

$

1,266

$

1,477

(14) %

Boddington

$

1,172

$

922

27 %

 

$

1,067

$

921

16 %

Tanami

$

1,046

$

1,044

— %

 

$

1,060

$

960

10 %

Cadia

$

1,271

$

— %

 

$

1,271

$

— %

Telfer

$

1,988

$

— %

 

$

1,988

$

— %

Lihir

$

1,517

$

— %

 

$

1,517

$

— %

Ahafo

$

1,114

$

1,202

(7) %

 

$

1,222

$

1,178

4 %

Akyem

$

1,110

$

1,157

(4) %

 

$

1,210

$

972

24 %

Nevada Gold Mines

$

1,482

$

1,186

25 %

 

$

1,397

$

1,220

15 %

Total Gold AISC (5)

$

1,485

$

1,215

22 %

 

$

1,444

$

1,211

19 %

Total Gold AISC (by-product) (5)

$

1,540

$

1,211

27 %

 

$

1,480

$

1,198

24 %

 

 

 

 

 

 

 

 

Red Chris

$

1,660

$

— %

 

$

1,660

$

— %

Peñasquito

$

2,084

$

1,181

76 %

 

$

1,752

$

1,112

58 %

Boddington

$

1,181

$

954

24 %

 

$

1,067

$

894

19 %

Cadia

$

1,342

$

— %

 

$

1,342

$

— %

Telfer

$

2,580

$

— %

 

$

2,580

$

— %

Total GEO AISC (5)

$

1,697

$

1,166

46 %

 

$

1,577

$

1,114

42 %

(1)

 

Attributable gold ounces sold excludes ounces related to the Pueblo Viejo mine, which is 40% owned by Newmont and accounted for as an equity method investment, and the Fruta del Norte mine, which is wholly owned by Lundin Gold whom the Company holds a 32% interest and is accounted for as an equity method investment.

(2)

 

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.

(3)

 

Represents attributable gold from Pueblo Viejo, which is accounted for as an equity method investment. 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.

(4)

 

Represents attributable gold from Newmont's 32% interest in Lundin Gold, who wholly owns and operates the Fruta del Norte mine, which is accounted for on a quarterly-lag as an equity method investment. As a result, results of operations will be not be reported until the first quarter of 2024.

(5)

 

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

 

NEWMONT CORPORATION

CONSOLIDATED STATEMENTS OF OPERATIONS

 

 

Three Months Ended

December 31,

Year Ended

December 31,

 

 

2023

 

 

 

2022

 

 

 

2023

 

 

 

2022

 

 

(in millions, except per share)

Sales

$

3,957

 

 

$

3,200

 

 

$

11,812

 

 

$

11,915

 

 

 

 

 

 

 

 

 

Costs and expenses

 

 

 

 

 

 

 

Costs applicable to sales (1)

 

2,303

 

 

 

1,780

 

 

 

6,699

 

 

 

6,468

 

Depreciation and amortization

 

624

 

 

 

571

 

 

 

2,051

 

 

 

2,185

 

Reclamation and remediation

 

1,235

 

 

 

758

 

 

 

1,533

 

 

 

921

 

Exploration

 

73

 

 

 

62

 

 

 

265

 

 

 

231

 

Advanced projects, research and development

 

68

 

 

 

60

 

 

 

200

 

 

 

229

 

General and administrative

 

84

 

 

 

66

 

 

 

299

 

 

 

276

 

Impairment charges

 

1,881

 

 

 

1,317

 

 

 

1,891

 

 

 

1,320

 

Other expense, net

 

441

 

 

 

17

 

 

 

517

 

 

 

82

 

 

 

6,709

 

 

 

4,631

 

 

 

13,455

 

 

 

11,712

 

Other income (expense):

 

 

 

 

 

 

 

Other income (loss), net

 

(210

)

 

 

101

 

 

 

(86

)

 

 

(27

)

Interest expense, net of capitalized interest of $29, $21, $89, and $69, respectively

 

(80

)

 

 

(53

)

 

 

(242

)

 

 

(227

)

 

 

(290

)

 

 

48

 

 

 

(328

)

 

 

(254

)

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

 

(3,042

)

 

 

(1,383

)

 

 

(1,971

)

 

 

(51

)

Income and mining tax benefit (expense)

 

(117

)

 

 

(112

)

 

 

(566

)

 

 

(455

)

Equity income (loss) of affiliates

 

19

 

 

 

26

 

 

 

63

 

 

 

107

 

Net income (loss) from continuing operations

 

(3,140

)

 

 

(1,469

)

 

 

(2,474

)

 

 

(399

)

Net income (loss) from discontinued operations

 

11

 

 

 

11

 

 

 

26

 

 

 

30

 

Net income (loss)

 

(3,129

)

 

 

(1,458

)

 

 

(2,448

)

 

 

(369

)

Net loss (income) attributable to noncontrolling interests

 

(10

)

 

 

(19

)

 

 

(27

)

 

 

(60

)

Net income (loss) attributable to Newmont stockholders

$

(3,139

)

 

$

(1,477

)

 

$

(2,475

)

 

$

(429

)

 

 

 

 

 

 

 

 

Net income (loss) attributable to Newmont stockholders:

 

 

 

 

 

 

 

Continuing operations

$

(3,150

)

 

$

(1,488

)

 

$

(2,501

)

 

$

(459

)

Discontinued operations

 

11

 

 

 

11

 

 

 

26

 

 

 

30

 

 

$

(3,139

)

 

$

(1,477

)

 

$

(2,475

)

 

$

(429

)

 

 

 

 

 

 

 

 

Weighted average common shares (millions):

 

 

 

 

 

 

 

Basic

 

978

 

 

 

794

 

 

 

841

 

 

 

794

 

Effect of employee stock-based awards

 

1

 

 

 

1

 

 

 

 

 

 

1

 

Diluted

 

979

 

 

 

795

 

 

 

841

 

 

 

795

 

 

 

 

 

 

 

 

 

Net income (loss) per common share

 

 

 

 

 

 

 

Basic:

 

 

 

 

 

 

 

Continuing operations

$

(3.22

)

 

$

(1.87

)

 

$

(2.97

)

 

$

(0.58

)

Discontinued operations

 

0.01

 

 

 

0.01

 

 

 

0.03

 

 

 

0.04

 

 

$

(3.21

)

 

$

(1.86

)

 

$

(2.94

)

 

$

(0.54

)

Diluted: (2)

 

 

 

 

 

 

 

Continuing operations

$

(3.22

)

 

$

(1.87

)

 

$

(2.97

)

 

$

(0.58

)

Discontinued operations

 

0.01

 

 

 

0.01

 

 

 

0.03

 

 

 

0.04

 

 

$

(3.21

)

 

$

(1.86

)

 

$

(2.94

)

 

$

(0.54

)

(1)

 

Excludes Depreciation and amortization and Reclamation and remediation.

(2)

 

For the years and quarters ended December 31, 2023 and 2022, potentially dilutive shares were excluded in the computation of diluted loss per common share attributable to Newmont stockholders as they were antidilutive.

 

NEWMONT CORPORATION

CONSOLIDATED BALANCE SHEETS

 

 

At December 31,

2023

 

At December 31,

2022

 

(in millions)

ASSETS

 

 

 

Cash and cash equivalents

$

3,002

 

 

$

2,877

 

Time deposits and other investments

 

23

 

 

 

880

 

Trade receivables

 

734

 

 

 

366

 

Inventories

 

1,663

 

 

 

979

 

Stockpiles and ore on leach pads

 

979

 

 

 

774

 

Other receivables

 

493

 

 

 

324

 

Derivative assets

 

198

 

 

 

12

 

Other current assets

 

411

 

 

 

303

 

Current assets

 

7,503

 

 

 

6,515

 

Property, plant and mine development, net

 

37,620

 

 

 

24,073

 

Investments

 

4,143

 

 

 

3,278

 

Stockpiles and ore on leach pads

 

1,935

 

 

 

1,716

 

Deferred income tax assets

 

271

 

 

 

173

 

Goodwill

 

3,001

 

 

 

1,971

 

Derivative assets

 

444

 

 

 

196

 

Other non-current assets

 

640

 

 

 

560

 

Total assets

$

55,557

 

 

$

38,482

 

 

 

 

 

LIABILITIES

 

 

 

Accounts payable

$

960

 

 

$

633

 

Employee-related benefits

 

551

 

 

 

399

 

Income and mining taxes

 

88

 

 

 

199

 

Lease and other financing obligations

 

114

 

 

 

96

 

Debt

 

1,923

 

 

 

 

Other current liabilities

 

2,362

 

 

 

1,599

 

Current liabilities

 

5,998

 

 

 

2,926

 

Debt

 

6,951

 

 

 

5,571

 

Lease and other financing obligations

 

448

 

 

 

465

 

Reclamation and remediation liabilities

 

8,167

 

 

 

6,578

 

Deferred income tax liabilities

 

3,030

 

 

 

1,809

 

Employee-related benefits

 

643

 

 

 

342

 

Silver streaming agreement

 

779

 

 

 

828

 

Other non-current liabilities

 

316

 

 

 

430

 

Total liabilities

 

26,332

 

 

 

18,949

 

 

 

 

 

Commitments and contingencies

 

 

 

 

 

 

 

EQUITY

 

 

 

Common stock - $1.60 par value;

 

1,854

 

 

 

1,279

 

Authorized - 2,550 million and 1,280 million shares, respectively

 

 

 

Outstanding shares - 1,152 million and 793 million shares, respectively

 

 

 

Treasury stock - 7 million and 6 million shares, respectively

 

(264

)

 

 

(239

)

Additional paid-in capital

 

30,419

 

 

 

17,369

 

Accumulated other comprehensive income (loss)

 

14

 

 

 

29

 

(Accumulated deficit) Retained earnings

 

(2,976

)

 

 

916

 

Newmont stockholders' equity

 

29,047

 

 

 

19,354

 

Noncontrolling interests

 

178

 

 

 

179

 

Total equity

 

29,225

 

 

 

19,533

 

Total liabilities and equity

$

55,557

 

 

$

38,482

 

 

NEWMONT CORPORATION

CONSOLIDATED STATEMENTS OF CASH FLOWS

 

 

Three Months Ended

December 31,

Year Ended

December 31,

 

 

2023

 

 

 

2022

 

 

 

2023

 

 

 

2022

 

 

(in millions)

Operating activities:

 

 

 

 

 

 

 

Net income (loss)

$

(3,129

)

 

$

(1,458

)

 

$

(2,448

)

 

$

(369

)

Adjustments:

 

 

 

 

 

 

 

Depreciation and amortization

 

624

 

 

 

571

 

 

 

2,051

 

 

 

2,185

 

Impairment charges

 

1,891

 

 

 

1,317

 

 

 

1,891

 

 

 

1,320

 

Net loss (income) from discontinued operations

 

(11

)

 

 

(11

)

 

 

(26

)

 

 

(30

)

Reclamation and remediation

 

1,219

 

 

 

743

 

 

 

1,506

 

 

 

892

 

Gain on asset and investment sales, net

 

231

 

 

 

(61

)

 

 

197

 

 

 

(35

)

Deferred income taxes

 

(61

)

 

 

(133

)

 

 

(64

)

 

 

(278

)

Stock-based compensation

 

22

 

 

 

16

 

 

 

80

 

 

 

73

 

Change in fair value of investments

 

5

 

 

 

(45

)

 

 

47

 

 

 

46

 

Charges from pension settlement

 

9

 

 

 

7

 

 

 

9

 

 

 

137

 

Other non-cash adjustments

 

(13

)

 

 

93

 

 

 

24

 

 

 

98

 

Net change in operating assets and liabilities

 

(171

)

 

 

(29

)

 

 

(513

)

 

 

(841

)

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

 

616

 

 

 

1,010

 

 

 

2,754

 

 

 

3,198

 

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

 

 

 

 

 

 

 

9

 

 

 

22

 

Net cash provided by (used in) operating activities

 

616

 

 

 

1,010

 

 

 

2,763

 

 

 

3,220

 

 

 

 

 

 

 

 

 

Investing activities:

 

 

 

 

 

Additions to property, plant and mine development

 

(920

)

 

 

(646

)

 

 

(2,666

)

 

 

(2,131

)

Maturities of investments

 

8

 

 

 

93

 

 

 

1,363

 

 

 

93

 

Acquisitions, net (1)

 

668

 

 

 

 

 

 

668

 

 

 

(15

)

Purchases of investments

 

(6

)

 

 

(275

)

 

 

(551

)

 

 

(940

)

Proceeds from sales of investments

 

15

 

 

 

127

 

 

 

234

 

 

 

171

 

Contributions to equity method investees

 

(18

)

 

 

(42

)

 

 

(108

)

 

 

(194

)

Return of investment from equity method investees

 

6

 

 

 

10

 

 

 

36

 

 

 

62

 

Proceeds from sales of mining operations and other assets, net

 

 

 

 

3

 

 

 

 

 

 

16

 

Other

 

(2

)

 

 

4

 

 

 

22

 

 

 

(45

)

Net cash provided by (used in) investing activities

 

(249

)

 

 

(726

)

 

 

(1,002

)

 

 

(2,983

)

 

 

 

 

 

 

 

 

Financing activities:

 

 

 

 

 

Dividends paid to common stockholders

 

(461

)

 

 

(436

)

 

 

(1,415

)

 

 

(1,746

)

Distributions to noncontrolling interests

 

(43

)

 

 

(51

)

 

 

(150

)

 

 

(191

)

Funding from noncontrolling interests

 

31

 

 

 

28

 

 

 

138

 

 

 

117

 

Payments on lease and other financing obligations

 

(19

)

 

 

(16

)

 

 

(67

)

 

 

(66

)

Payments for Norte Abierto deferred payment obligation

 

(55

)

 

 

(2

)

 

 

(64

)

 

 

(8

)

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

 

(1

)

 

 

(1

)

 

 

(25

)

 

 

(39

)

Acquisition of noncontrolling interests

 

 

 

 

 

 

 

 

 

 

(348

)

Repayment of debt

 

 

 

 

 

 

 

 

 

 

(89

)

Other

 

10

 

 

 

(1

)

 

 

(20

)

 

 

14

 

Net cash provided by (used in) financing activities

 

(538

)

 

 

(479

)

 

 

(1,603

)

 

 

(2,356

)

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

 

7

 

 

 

(1

)

 

 

(2

)

 

 

(30

)

Net change in cash, cash equivalents and restricted cash

 

(164

)

 

 

(196

)

 

 

156

 

 

 

(2,149

)

Cash, cash equivalents and restricted cash at beginning of period

 

3,264

 

 

 

3,140

 

 

 

2,944

 

 

 

5,093

 

Cash, cash equivalents and restricted cash at end of period

$

3,100

 

 

$

2,944

 

 

$

3,100

 

 

$

2,944

 

Reconciliation of cash, cash equivalents and restricted cash:

 

 

 

 

 

 

 

Cash and cash equivalents

$

3,002

 

 

$

2,877

 

 

$

3,002

 

 

$

2,877

 

Restricted cash included in Other current assets

 

11

 

 

 

1

 

 

 

11

 

 

 

1

 

Restricted cash included in Other non-current assets

 

87

 

 

 

66

 

 

 

87

 

 

 

66

 

Total cash, cash equivalents and restricted cash

$

3,100

 

 

$

2,944

 

 

$

3,100

 

 

$

2,944

 

(1)

 

Acquisitions, net is primarily related to the cash acquired in the Newcrest transaction for the year and quarter ended December 31, 2023.

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. Unless otherwise noted, we present the Non-GAAP financial measures of our continuing operations in the tables below.

Adjusted net income (loss)

Management uses Adjusted Net Income (Loss) to evaluate the Company’s operating performance and for planning and forecasting future business operations. The Company believes the use of Adjusted Net Income (Loss) allows investors and analysts to understand the results of the continuing operations of the Company and its direct and indirect subsidiaries relating to the sale of products, by excluding certain items that have a disproportionate impact on our results for a particular period. Adjustments to continuing operations are presented before tax and net of our partners’ noncontrolling interests, when applicable. The tax effect of adjustments is presented in the Tax effect of adjustments line and is calculated using the applicable tax rate. Management’s determination of the components of Adjusted Net Income (Loss) are evaluated periodically and based, in part, on a review of non-GAAP financial measures used by mining industry analysts. Net income (loss) attributable to Newmont stockholders is reconciled to Adjusted net income (loss) as follows:

 

Three Months Ended

December 31, 2023

 

Year Ended

December 31, 2023

 

 

 

per share data (1)

 

 

 

per share data (1)

 

 

 

basic

 

diluted

 

 

 

basic

 

diluted

Net income (loss) attributable to Newmont stockholders

$

(3,139

)

 

$

(3.21

)

 

$

(3.21

)

 

$

(2,475

)

 

$

(2.94

)

 

$

(2.94

)

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

 

(11

)

 

 

(0.01

)

 

 

(0.01

)

 

 

(26

)

 

 

(0.03

)

 

 

(0.03

)

Net income (loss) attributable to Newmont stockholders from continuing operations (2)

 

(3,150

)

 

 

(3.22

)

 

 

(3.22

)

 

 

(2,501

)

 

 

(2.97

)

 

 

(2.97

)

Impairment charges, net (3)

 

1,878

 

 

 

1.92

 

 

 

1.92

 

 

 

1,888

 

 

 

2.25

 

 

 

2.25

 

Reclamation and remediation charges (4)

 

1,158

 

 

 

1.18

 

 

 

1.18

 

 

 

1,260

 

 

 

1.50

 

 

 

1.50

 

Newcrest transaction and integration costs (5)

 

427

 

 

 

0.44

 

 

 

0.44

 

 

 

464

 

 

 

0.56

 

 

 

0.56

 

(Gain) loss on asset and investment sales (6)

 

231

 

 

 

0.24

 

 

 

0.24

 

 

 

197

 

 

 

0.23

 

 

 

0.23

 

Change in fair value of investments (7)

 

5

 

 

 

 

 

 

 

 

 

47

 

 

 

0.05

 

 

 

0.05

 

Restructuring and severance (8)

 

5

 

 

 

 

 

 

 

 

 

24

 

 

 

0.03

 

 

 

0.03

 

Pension settlements (9)

 

9

 

 

 

0.01

 

 

 

0.01

 

 

 

9

 

 

 

0.01

 

 

 

0.01

 

Settlement costs (10)

 

5

 

 

 

 

 

 

 

 

 

7

 

 

 

0.01

 

 

 

0.01

 

COVID-19 specific costs (11)

 

1

 

 

 

 

 

 

 

 

 

1

 

 

 

 

 

 

 

Other (12)

 

 

 

 

 

 

 

 

 

 

(5

)

 

 

 

 

 

 

Tax effect of adjustments (13)

 

(565

)

 

 

(0.57

)

 

 

(0.57

)

 

 

(613

)

 

 

(0.73

)

 

 

(0.73

)

Valuation allowance and other tax adjustments, net (14)

 

482

 

 

 

0.50

 

 

 

0.50

 

 

 

580

 

 

 

0.67

 

 

 

0.67

 

Adjusted net income (loss)

$

486

 

 

$

0.50

 

 

$

0.50

 

 

$

1,358

 

 

$

1.61

 

 

$

1.61

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares (millions): (2)

 

 

 

978

 

 

 

979

 

 

 

 

 

841

 

 

 

841

 

(1)

 

Per share measures may not recalculate due to rounding.

(2)

 

Adjusted net income (loss) per diluted share is calculated using diluted common shares, which are calculated in accordance with GAAP. For the year ended December 31, 2023, potentially dilutive shares, which were insignificant, were excluded from the computation of diluted loss per common share attributable to Newmont stockholders in the Consolidated Statement of Operations as they were antidilutive. These shares were included in the computation of adjusted net income per diluted share for the year ended December 31, 2023.

(3)

 

Impairment charges, net, included in Impairment charges represents non-cash write-downs of long-lived assets and goodwill. Amount is presented net of pre-tax income (loss) attributable to noncontrolling interests of $(3) for the three months and year ended December 31, 2023.

(4)

 

Reclamation and remediation charges, net, included in Reclamation and remediation, represent revisions to the reclamation and remediation plans and cost estimates at the Company’s former operating properties and historic mining operations that have entered the closure phase and have no substantive future economic value.

(5)

 

Newcrest transaction and integration costs, included in Other expense, net, represents costs incurred related to Newmont's acquisition of Newcrest completed in 2023 as well as subsequent integration costs. These cost primarily include $316 in relation to the stamp duty tax incurred in connection with the transaction for the three months and year ended December 31, 2023.

(6)

 

(Gain) loss on asset and investment sales, included in Gain on asset and investment sales, net, primarily represents the impairment loss on the abandonment of the pyrite leach plant at Peñasquito offset by the net gain recognized on the exchange of Maverix shares and warrants to Triple flag and the subsequent sale of Triple Flag shares.

(7)

 

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.

(8)

 

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

(9)

 

Pension settlements, included in Other income (loss), net, primarily represents pension settlement charges related to lump sum payments to participants.

(10)

 

Settlement costs, included in Other expense, net, primarily represents costs related to additional employee related accruals as a result of the Australian Fair Work legislation.

(11)

 

COVID-19 specific costs, included in Other expense, net, represents amounts distributed from the Newmont Global Community Fund to help host communities, governments and employees combat the COVID-19 pandemic. Adjusted net income (loss) has not been adjusted for $1 of incremental COVID-19 costs incurred as a result of actions taken to protect against the impacts of the COVID-19 pandemic at our operational sites for the three months and year ended December 31, 2023.

(12)

 

Other, included in Other income (loss), net, primarily 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.

(13)

 

The tax effect of adjustments, included in Income and mining tax benefit (expense), represents the tax effect of adjustments in footnotes (4) through (12), as described above, and are calculated using the applicable tax rate.

(14)

 

Valuation allowance and other tax adjustments, net, included in Income and mining tax benefit (expense), is recorded for items such as foreign tax credits, alternative minimum tax credits, capital losses, disallowed foreign losses, and the effects of changes in foreign currency exchange rates on deferred tax assets and deferred tax liabilities. The adjustment for the three months and year ended December 31, 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 $231 and $357, the effects of changes in foreign exchange rates on deferred tax assets and liabilities of $51 and $(1), net removal to the reserve for uncertain tax positions of $(46) and $(28), and other tax adjustments of $246 and $252.

 

 

Three Months Ended

December 31, 2022

 

Year Ended

December 31, 2022

 

 

 

per share data (1)

 

 

 

per share data (1)

 

 

 

basic

 

diluted

 

 

 

basic

 

diluted

Net income (loss) attributable to Newmont stockholders

$

(1,477

)

 

$

(1.86

)

 

$

(1.86

)

 

$

(429

)

 

$

(0.54

)

 

$

(0.54

)

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

 

(11

)

 

 

(0.01

)

 

 

(0.01

)

 

 

(30

)

 

 

(0.04

)

 

 

(0.04

)

Net income (loss) attributable to Newmont stockholders from continuing operations (2)

 

(1,488

)

 

 

(1.87

)

 

 

(1.87

)

 

 

(459

)

 

 

(0.58

)

 

 

(0.58

)

Impairment charges (3)

 

1,317

 

 

 

1.66

 

 

 

1.66

 

 

 

1,320

 

 

 

1.66

 

 

 

1.66

 

Reclamation and remediation charges, net (4)

 

700

 

 

 

0.88

 

 

 

0.88

 

 

 

713

 

 

 

0.90

 

 

 

0.90

 

Pension settlement (5)

 

7

 

 

 

0.01

 

 

 

0.01

 

 

 

137

 

 

 

0.17

 

 

 

0.17

 

Change in fair value of investments (6)

 

(45

)

 

 

(0.06

)

 

 

(0.06

)

 

 

46

 

 

 

0.06

 

 

 

0.06

 

(Gain) loss on asset and investment sales (7)

 

(61

)

 

 

(0.08

)

 

 

(0.08

)

 

 

(35

)

 

 

(0.04

)

 

 

(0.04

)

Settlement costs (8)

 

2

 

 

 

 

 

 

 

 

 

22

 

 

 

0.03

 

 

 

0.03

 

Restructuring and severance, net (9)

 

1

 

 

 

 

 

 

 

 

 

4

 

 

 

0.01

 

 

 

0.01

 

COVID-19 specific costs (10)

 

2

 

 

 

 

 

 

 

 

 

3

 

 

 

 

 

 

 

Other (11)

 

(3

)

 

 

 

 

 

 

 

 

(21

)

 

 

(0.03

)

 

 

(0.03

)

Tax effect of adjustments (12)

 

(283

)

 

 

(0.35

)

 

 

(0.35

)

 

 

(344

)

 

 

(0.44

)

 

 

(0.44

)

Valuation allowance and other tax adjustments, net (13)

 

199

 

 

 

0.25

 

 

 

0.25

 

 

 

82

 

 

 

0.11

 

 

 

0.11

 

Adjusted net income (loss)

$

348

 

 

$

0.44

 

 

$

0.44

 

 

$

1,468

 

 

$

1.85

 

 

$

1.85

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares (millions): (2)

 

 

 

794

 

 

 

795

 

 

 

 

 

794

 

 

 

795

 

(1)

 

Per share measures may not recalculate due to rounding.

(2)

 

Adjusted net income (loss) per diluted share is calculated using diluted common shares, which are calculated in accordance with GAAP. For the year ended December 31, 2022, potentially dilutive shares of 1 million were excluded from the computation of diluted loss per common share attributable to Newmont stockholders in the Consolidated Statement of Operations as they were antidilutive. These shares were included in the computation of adjusted net income per diluted share for the year ended December 31, 2022.

(3)

 

Impairment charges, included in Impairment charges represents non-cash write-downs of long-lived assets and goodwill.

(4)

 

Reclamation and remediation charges, net, included in Reclamation and remediation, represent revisions to reclamation and remediation plans and cost estimates at the Company’s former operating properties and historic mining operations that have entered the closure phase and have no substantive future economic value.

(5)

 

Pension settlements, included in Other income (loss), net, represents pension settlement charges related to the annuitization of certain defined benefit plans.

(6)

 

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.

(7)

 

(Gain) loss on asset and investment sales, included in Other income (loss), net, primarily represents gains recognized on the sale of the investment in MARA, disposal of trucks at Boddington, and the sale of royalty interests at NGM, partially offset by the loss recognized on the sale of the La Zanja equity method investment.

(8)

 

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

(9)

 

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

(10)

 

COVID-19 specific costs, included in Other expense, net, represents amounts distributed from the Newmont Global Community Fund to help host communities, governments and employees combat the COVID-19 pandemic. Adjusted net income (loss) has not been adjusted for $2 and $35, respectively, of incremental COVID-19 costs incurred as a result of actions taken to protect against the impacts of the COVID-19 pandemic at our operational sites.

(11)

 

Primarily represents for the year ended, an $11 reimbursement of certain historical Goldcorp operational expenses related to a legacy project that reached commercial production in the second quarter of 2022 and $7 of penalty income from an energy vendor early terminating a contract in 2022, included Other income (loss), net.

(12)

 

The tax effect of adjustments, included in Income and mining tax benefit (expense), represents the tax effect of adjustments in footnotes (3) through (11), as described above, and are calculated using the applicable tax rate.

(13)

 

Valuation allowance and other tax adjustments, net, included in Income and mining tax benefit (expense), is recorded for items such as foreign tax credits, alternative minimum tax credits, capital losses, disallowed foreign losses, and the effects of changes in foreign currency exchange rates on deferred tax assets and deferred tax liabilities. The adjustment for the three months and the year ended December 31, 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 $178 and $246, respectively, the expiration of U.S. foreign tax credit carryovers of $31 and $31, respectively, the effects of changes in foreign exchange rates on deferred tax assets and liabilities of $(38) and $(86), respectively, net removal to the reserve for uncertain tax positions of $5 and $(8), respectively, a tax settlement in Mexico of $- and $(125), respectively, and other tax adjustments of $23 and $24, respectively. Total amount is presented net of income (loss) attributable to noncontrolling interests of $199 and $82, respectively.

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

Management uses earnings before interest, taxes and depreciation and amortization (“EBITDA”) and EBITDA adjusted for non-core or certain items that have a disproportionate impact on our results for a particular period (“Adjusted EBITDA”) as non-GAAP measures to evaluate the Company’s operating performance. EBITDA and Adjusted EBITDA do not represent, and should not be considered an alternative to, net income (loss), operating income (loss), or cash flow from operations as those terms are defined by GAAP, and do not necessarily indicate whether cash flows will be sufficient to fund cash needs. Although Adjusted EBITDA and similar measures are frequently used as measures of operations and the ability to meet debt service requirements by other companies, our calculation of Adjusted EBITDA is not necessarily comparable to such other similarly titled captions of other companies. The Company believes that Adjusted EBITDA provides useful information to investors and others in understanding and evaluating our operating results in the same manner as our management and Board of Directors. Management’s determination of the components of Adjusted EBITDA are evaluated periodically and based, in part, on a review of non-GAAP financial measures used by mining industry analysts. Net income (loss) attributable to Newmont stockholders is reconciled to EBITDA and Adjusted EBITDA as follows:

Three Months Ended

December 31,

 

Year Ended

December 31,

 

2023

 

 

 

2022

 

 

 

2023

 

 

 

2022

 

Net income (loss) attributable to Newmont stockholders

$

(3,139

)

 

$

(1,477

)

 

$

(2,475

)

 

$

(429

)

Net income (loss) attributable to noncontrolling interests

 

10

 

 

 

19

 

 

 

27

 

 

 

60

 

Net (income) loss from discontinued operations

 

(11

)

 

 

(11

)

 

 

(26

)

 

 

(30

)

Equity loss (income) of affiliates

 

(19

)

 

 

(26

)

 

 

(63

)

 

 

(107

)

Income and mining tax expense (benefit)

 

117

 

 

 

112

 

 

 

566

 

 

 

455

 

Depreciation and amortization

 

624

 

 

 

571

 

 

 

2,051

 

 

 

2,185

 

Interest expense, net

 

80

 

 

 

53

 

 

 

242

 

 

 

227

 

EBITDA

$

(2,338

)

 

$

(759

)

 

$

322

 

 

$

2,361

 

Adjustments:

 

 

 

 

 

 

 

Impairment charges (1)

$

1,881

 

 

$

1,317

 

 

$

1,891

 

 

$

1,320

 

Reclamation and remediation charges (2)

 

1,158

 

 

 

700

 

 

 

1,260

 

 

 

713

 

Newcrest transaction and integration costs (3)

 

427

 

 

 

 

 

 

464

 

 

 

 

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

 

231

 

 

 

(61

)

 

 

197

 

 

 

(35

)

Change in fair value of investments (5)

 

5

 

 

 

(45

)

 

 

47

 

 

 

46

 

Restructuring and severance (6)

 

5

 

 

 

1

 

 

 

24

 

 

 

4

 

Pension settlements (7)

 

9

 

 

 

7

 

 

 

9

 

 

 

137

 

Settlement costs (8)

 

5

 

 

 

2

 

 

 

7

 

 

 

22

 

COVID-19 specific costs (9)

 

1

 

 

 

2

 

 

 

1

 

 

 

3

 

Other (10)

 

 

 

 

(3

)

 

 

(5

)

 

 

(21

)

Adjusted EBITDA

$

1,384

 

 

$

1,161

 

 

$

4,217

 

 

$

4,550

 

(1)

 

Impairment charges, included in Impairment charges represents non-cash write-downs of long-lived assets and goodwill.

(2)

 

Reclamation and remediation charges, included in Reclamation and remediation, represent revisions to the reclamation and remediation plans and cost estimates at the Company’s former operating properties and historic mining operations that have entered the closure phase and have no substantive future economic value.

(3)

 

Newcrest transaction and integration costs, included in Other expense, net, represents costs incurred related to Newmont's acquisition of Newcrest completed in 2023 as well as subsequent integration costs. These cost primarily include $316 in relation to the stamp duty tax incurred in connection with the transaction for the three months and year ended December 31, 2023.

(4)

 

(Gain) loss on asset and investment sales, included in Other income (loss), net, primarily represents the impairment loss on the abandonment of the pyrite leach plant at Peñasquito offset by the net gain recognized on the exchange of Maverix shares and warrants to Triple flag and the subsequent sale of Triple Flag shares in 2023; gains recognized on the sale of the investment in MARA, on disposal of trucks at Boddington, and the sale of royalty interests at NGM, partially offset by the loss recognized on the sale of the La Zanja equity method investment in 2022.

(5)

 

Change in fair value of investments, included in Other income (loss), net, primarily represents unrealized gains and losses related to the Company's investments in current and non-current marketable and other equity securities.

(6)

 

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

(7)

 

Pension settlements, included in Other income (loss), net, primarily represents pension settlement charges related to lump sum payments to participants in 2023 and the annuitization of certain defined benefit plans and lump sum payments to participants in 2022.

(8)

 

Settlement costs, included in Other expense, net, primarily represents costs related to additional employee related accruals as a result of the Australian Fair Work legislation in 2023 and a legal settlement and a voluntary contribution made to support humanitarian efforts in Ukraine in 2022.

(9)

 

COVID-19 specific costs, included in Other expense, net, primarily includes amounts distributed from Newmont Global Community Support Fund to help host communities, governments and employees combat the COVID-19 pandemic for all periods presented and includes incremental direct costs incurred as a result of actions taken to protect against the impacts of 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 and penalty income from an energy vendor early terminating a contract in 2022.

Free Cash Flow

Management uses Free Cash Flow as a non-GAAP measure to analyze cash flows generated from operations. Free Cash Flow is Net cash provided by (used in) operating activities less Net cash provided by (used in) operating activities of discontinued operations less Additions to property, plant and mine development as presented on the Consolidated Statements of Cash Flows. The Company believes Free Cash Flow is also useful as one of the bases for comparing the Company’s performance with its competitors. Although 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 Free Cash Flow is not necessarily comparable to such other similarly titled captions of other companies.

The presentation of non-GAAP Free Cash Flow is not meant to be considered in isolation or as an alternative to net income as an indicator of the Company’s performance, or as an alternative to cash flows from 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 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 Free Cash Flow as a measure that provides supplemental information to the Company’s Consolidated Statements of Cash Flows.

The following table sets forth a reconciliation of 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 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

December 31,

 

Year Ended

December 31,

 

 

2023

 

 

 

2022

 

 

 

2023

 

 

 

2022

 

Net cash provided by (used in) operating activities

$

616

 

 

$

1,010

 

 

$

2,763

 

 

$

3,220

 

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

 

 

 

 

 

 

 

(9

)

 

 

(22

)

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

 

616

 

 

 

1,010

 

 

 

2,754

 

 

 

3,198

 

Less: Additions to property, plant and mine development

 

(920

)

 

 

(646

)

 

 

(2,666

)

 

 

(2,131

)

Free Cash Flow

$

(304

)

 

$

364

 

 

$

88

 

 

$

1,067

 

 

 

 

 

 

 

 

 

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

$

(249

)

 

$

(726

)

 

$

(1,002

)

 

$

(2,983

)

Net cash provided by (used in) financing activities

$

(538

)

 

$

(479

)

 

$

(1,603

)

 

$

(2,356

)

(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 December 31, 2023

 

Year Ended December 31, 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

$

616

 

 

$

(21

)

 

$

595

 

 

$

2,763

 

 

$

(50

)

 

$

2,713

 

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

 

 

 

 

 

 

 

 

 

 

(9

)

 

 

 

 

 

(9

)

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

 

616

 

 

 

(21

)

 

 

595

 

 

 

2,754

 

 

 

(50

)

 

 

2,704

 

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

 

(920

)

 

 

6

 

 

 

(914

)

 

 

(2,666

)

 

 

21

 

 

 

(2,645

)

Free Cash Flow

$

(304

)

 

$

(15

)

 

$

(319

)

 

$

88

 

 

$

(29

)

 

$

59

 

 

 

 

 

 

 

 

 

 

 

 

 

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

$

(249

)

 

 

 

 

 

$

(1,002

)

 

 

 

 

Net cash provided by (used in) financing activities

$

(538

)

 

 

 

 

 

$

(1,603

)

 

 

 

 

(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 primarily relates to Merian (25%) for the three months and year ended December 31, 2023.

(2)

 

For the three months and year ended December 31, 2023, Merian had total consolidated Additions to property, plant and mine development of $51 and $85, respectively, on a cash basis.

(3)

 

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

 

 

Three Months Ended December 31, 2022

 

Year Ended December 31, 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

$

1,010

 

 

$

(19

)

 

$

991

 

 

$

3,220

 

 

$

(83

)

 

$

3,137

 

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

 

 

 

 

 

 

 

 

 

 

(22

)

 

 

 

 

 

(22

)

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

 

1,010

 

 

 

(19

)

 

 

991

 

 

 

3,198

 

 

 

(83

)

 

 

3,115

 

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

 

(646

)

 

 

4

 

 

 

(642

)

 

 

(2,131

)

 

 

29

 

 

 

(2,102

)

Free Cash Flow

$

364

 

 

$

(15

)

 

$

349

 

 

$

1,067

 

 

$

(54

)

 

$

1,013

 

 

 

 

 

 

 

 

 

 

 

 

 

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

$

(726

)

 

 

 

 

 

$

(2,983

)

 

 

 

 

Net cash provided by (used in) financing activities

$

(479

)

 

 

 

 

 

$

(2,356

)

 

 

 

 

(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 primarily relates to Merian (25%) for the three months and year ended December 31, 2022. The Company acquired the remaining interest in Yanacocha in 2022, resulting in 100% ownership interest at December 31, 2022.

(2)

 

For the three months and year ended December 31, 2022, Yanacocha had total consolidated Additions to property, plant and mine development of $166 and $403, respectively, on a cash basis. For the three months and year ended December 31, 2022, Merian had total consolidated Additions to property, plant and mine development of $19 and $56, respectively, on a cash basis.

(3)

 

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

Net Debt

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

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

At December 31,

2023

 

At December 31,

2022

Debt

$

8,874

 

 

$

5,571

 

Lease and other financing obligations

 

562

 

 

 

561

 

Less: Cash and cash equivalents

 

(3,002

)

 

 

(2,877

)

Less: Time deposits

 

 

 

 

(829

)

Net debt

$

6,434

 

 

$

2,426

 

Costs applicable to sales per ounce/gold equivalent ounce

Costs applicable to sales per ounce/gold equivalent ounce are non-GAAP financial measures. These measures 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. We believe that these measures provide additional information to management, investors and others that aids in the understanding of the economics of our operations and performance compared to other producers and provides investors visibility into the direct and indirect costs related to production, excluding depreciation and amortization, on a per ounce/gold equivalent ounce basis. Costs applicable to sales per ounce/gold equivalent ounce statistics are intended to provide additional information only and do not have any standardized meaning prescribed by GAAP and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP. The measures are not necessarily indicative of operating profit or cash flow from operations as determined under GAAP. Other companies may calculate these measures differently.

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

Costs applicable to sales per ounce

 

Three Months Ended

December 31,

 

Year Ended

December 31,

 

 

2023

 

 

 

2022

 

 

 

2023

 

 

 

2022

 

Costs applicable to sales (1)(2)

$

1,900

 

$

1,513

 

$

5,689

 

$

5,423

Gold sold (thousand ounces)

 

1,751

 

 

 

1,610

 

 

 

5,420

 

 

 

5,812

 

Costs applicable to sales per ounce (3)

$

1,086

 

 

$

940

 

 

$

1,050

 

 

$

933

 

(1)

 

Includes by-product credits of $38 and $124 during the three months and year ended December 31, 2023, respectively, and $34 and $109 during the three months and year ended December 31, 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

December 31,

 

Year Ended

December 31,

 

 

2023

 

 

 

2022

 

 

 

2023

 

 

 

2022

 

Costs applicable to sales (1)(2)

$

403

 

$

267

 

$

1,010

 

$

1,045

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

 

321

 

 

 

311

 

 

 

896

 

 

 

1,275

 

Costs applicable to sales per ounce (4)

$

1,254

 

 

$

857

 

 

$

1,127

 

 

$

819

 

(1)

 

Includes by-product credits of $8 and $13 during the three months and year ended December 31, 2023, respectively, and $2 and $8 during the three months and year ended December 31, 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 ounce for Nevada Gold Mines (NGM)

 

Three Months Ended

December 31,

 

Year Ended

December 31,

 

 

2023

 

 

 

2022

 

 

 

2023

 

 

 

2022

 

Cost applicable to sales, NGM (1)

$

361

 

$

300

 

$

1,249

 

$

1,153

Gold sold (thousand ounces), NGM

 

320

 

 

 

320

 

 

 

1,167

 

 

 

1,165

 

Costs applicable to sales per ounce, NGM (2)

$

1,125

 

 

$

934

 

 

$

1,070

 

 

$

989

 

(1)

 

Excludes Depreciation and amortization and Reclamation and remediation.

(2)

 

Per ounce measures may not recalculate due to rounding.

All-In Sustaining Costs

Current GAAP measures used in the mining industry, such as cost of goods sold, do not capture all of the expenditures incurred to discover, develop and sustain production. Therefore, Newmont calculates All-In Sustaining Costs (“AISC”) based on the definition published by the World Gold Council. The World Gold Council is a market development organization for the gold industry comprised of and funded by gold mining companies around the world and a regulatory organization.

AISC is a metric that expands on GAAP measures, such as cost of goods sold, and non-GAAP measures, such as costs applicable to sales per ounce, to provide visibility into the economics of our mining operations related to expenditures, operating performance and the ability to generate cash flow from our continuing operations. We believe that AISC is a non-GAAP measure that provides additional information to management, investors and others that aids in the understanding of the economics of our operations and performance compared to other producers and provides investors visibility by better defining the total costs associated with production.

AISC amounts are intended to provide additional information only and do not have any standardized meaning prescribed by GAAP and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP. The measures are not necessarily indicative of operating profit or cash flow from operations as determined under GAAP. Other companies may calculate these measures differently as a result of differences in the underlying accounting principles, policies applied and in accounting frameworks such as in IFRS, or by reflecting the benefit from selling non-gold metals as a reduction to AISC. Differences may also arise related to definitional differences of sustaining versus development (i.e. non-sustaining) activities based upon each company’s internal policies.

The following disclosure provides information regarding the adjustments made in determining the All-In Sustaining Costs measure:

Costs applicable to sales. Includes all direct and indirect costs related to current production incurred to execute the current mine plan. We exclude certain exceptional or unusual amounts from CAS, such as significant revisions to recovery amounts. CAS includes by-product credits from certain metals obtained during the process of extracting and processing the primary ore-body. CAS is accounted for on an accrual basis and excludes Depreciation and amortization and Reclamation and remediation, which is consistent with our presentation of CAS on the Consolidated Statements of Operations. In determining AISC, only the CAS associated with producing and selling an ounce of gold is included in the measure. Therefore, the amount of gold CAS included in AISC is derived from the CAS presented in the Company’s Consolidated Statements of Operations less the amount of CAS attributable to the production of other metals. The other metals' CAS at those mine sites is disclosed in Note 4 of the Consolidated Financial Statements. The allocation of CAS between gold and other metals is based upon the relative sales value of gold and other metals produced during the period.

Reclamation costs. Includes accretion expense related to reclamation liabilities and the amortization of the related ARC for the Company’s operating properties. Accretion related to the reclamation liabilities and the amortization of the ARC assets for reclamation does not reflect annual cash outflows but are calculated in accordance with GAAP. The accretion and amortization reflect the periodic costs of reclamation associated with current production and are therefore included in the measure. The allocation of these costs to gold and other metals is determined using the same allocation used in the allocation of CAS between gold and other metals.

Advanced projects, research and development and exploration. Includes incurred expenses related to projects that are designed to sustain current production and exploration. We note that as current resources are depleted, exploration and advanced projects are necessary for us to replace the depleting reserves or enhance the recovery and processing of the current reserves to sustain production at existing operations. As these costs relate to sustaining our production, and are considered a continuing cost of a mining company, these costs are included in the AISC measure. These costs are derived from the Advanced projects, research and development and Exploration amounts presented in the Consolidated Statements of Operations less incurred expenses related to the development of new operations, or related to major projects at existing operations where these projects will materially benefit the operation in the future. The allocation of these costs to gold and other metals is determined using the same allocation used in the allocation of CAS between gold and other metals. We also allocate these costs incurred at Corporate and Other using the proportion of CAS between gold and other metals.

General and administrative. Includes costs related to administrative tasks not directly related to current production, but rather related to supporting our corporate structure and fulfilling our obligations to operate as a public company. Including these expenses in the AISC metric provides visibility of the impact that general and administrative activities have on current operations and profitability on a per ounce basis. We allocate these costs to gold and other metals at Corporate and Other using the proportion of CAS between gold and other metals.

Other expense, net. For Other expense, net we include care and maintenance costs relating to direct operating costs incurred at the mine sites during the period that these sites were temporarily placed into care and maintenance in response to pandemics such as COVID-19 or unexpected significant events and exclude certain exceptional or unusual expenses, such as restructuring, as these are not indicative to sustaining our current operations. Furthermore, this adjustment to Other expense, net is also consistent with the nature of the adjustments made to Net income (loss) attributable to Newmont stockholders as disclosed in the Company’s non-GAAP financial measure Adjusted net income (loss). The allocation of these costs to gold and other metals is determined using the same allocation used in the allocation of CAS between gold and other metals.

Treatment and refining costs. Includes costs paid to smelters for treatment and refining of our concentrates to produce the salable metal. These costs are presented net as a reduction of Sales on the Consolidated Statements of Operations. The allocation of these costs to gold and other metals is determined using the same allocation used in the allocation of CAS between gold and other metals.

Sustaining capital and finance lease payments. We determined sustaining capital and finance lease payments as those capital expenditures and finance lease payments that are necessary to maintain current production and execute the current mine plan. We determined development (i.e. non-sustaining) capital expenditures and finance lease payments to be those payments used to develop new operations or related to projects at existing operations where those projects will materially benefit the operation and are excluded from the calculation of AISC. The classification of sustaining and development capital projects and finance leases is based on a systematic review of our project portfolio in light of the nature of each project. Sustaining capital and finance lease payments are relevant to the AISC metric as these are needed to maintain the Company’s current operations and provide improved transparency related to our ability to finance these expenditures from current operations. The allocation of these costs to gold and other metals is determined using the same allocation used in the allocation of CAS between gold and other metals. We also allocate these costs incurred at Corporate and Other using the proportion of CAS between gold and other metals.

Three Months Ended December 31, 2023

Costs

Applicable to

Sales(1)(2)(3)

 

Reclamation

Costs(4)

 

Advanced

Projects,

Research and

Development

and

Exploration(5)

 

General and

Administrative

 

Other

Expense,

Net(6)

 

Treatment

and

Refining

Costs

 

Sustaining

Capital

and Lease

Related

Costs(7)(8)

 

All-In

Sustaining

Costs

 

Ounces

(000)

Sold

All-In

Sustaining

Costs

Per oz.(9)

Gold

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CC&V

$

41

 

$

2

 

$

2

 

$

 

$

1

 

$

 

$

20

 

$

66

 

36

 

$

1,793

Musselwhite

 

51

 

 

 

1

 

 

 

3

 

 

 

 

 

 

 

 

 

 

 

 

31

 

 

 

86

 

 

49

 

 

 

1,771

 

Porcupine

 

81

 

 

 

6

 

 

 

2

 

 

 

 

 

 

 

 

 

 

 

 

26

 

 

 

115

 

 

69

 

 

 

1,665

 

Éléonore

 

83

 

 

 

2

 

 

 

4

 

 

 

 

 

 

(1

)

 

 

 

 

 

33

 

 

 

121

 

 

68

 

 

 

1,796

 

Red Chris (10)

 

4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2

 

 

 

6

 

 

4

 

 

 

1,439

 

Brucejack (10)

 

69

 

 

 

 

 

 

7

 

 

 

 

 

 

1

 

 

 

3

 

 

 

16

 

 

 

96

 

 

36

 

 

 

2,646

 

Peñasquito

 

35

 

 

 

1

 

 

 

 

 

 

 

 

 

2

 

 

 

2

 

 

 

5

 

 

 

45

 

 

27

 

 

 

1,659

 

Merian

 

116

 

 

 

2

 

 

 

5

 

 

 

 

 

 

 

 

 

1

 

 

 

22

 

 

 

146

 

 

100

 

 

 

1,454

 

Cerro Negro

 

96

 

 

 

1

 

 

 

2

 

 

 

 

 

 

3

 

 

 

 

 

 

18

 

 

 

120

 

 

85

 

 

 

1,412

 

Yanacocha

 

69

 

 

 

7

 

 

 

1

 

 

 

 

 

 

(4

)

 

 

 

 

 

13

 

 

 

86

 

 

71

 

 

 

1,198

 

Boddington

 

151

 

 

 

3

 

 

 

2

 

 

 

 

 

 

 

 

 

4

 

 

 

28

 

 

 

188

 

 

161

 

 

 

1,172

 

Tanami

 

93

 

 

 

1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

44

 

 

 

138

 

 

132

 

 

 

1,046

 

Cadia (10)

 

129

 

 

 

 

 

 

1

 

 

 

 

 

 

 

 

 

6

 

 

 

16

 

 

 

152

 

 

120

 

 

 

1,271

 

Telfer (10)

 

126

 

 

 

 

 

 

2

 

 

 

 

 

 

 

 

 

3

 

 

 

2

 

 

 

133

 

 

67

 

 

 

1,988

 

Lihir (10)

 

146

 

 

 

 

 

 

2

 

 

 

 

 

 

 

 

 

 

 

 

51

 

 

 

199

 

 

131

 

 

 

1,517

 

Ahafo

 

163

 

 

 

6

 

 

 

1

 

 

 

 

 

 

 

 

 

 

 

 

27

 

 

 

197

 

 

177

 

 

 

1,114

 

Akyem

 

86

 

 

 

15

 

 

 

 

 

 

(1

)

 

 

 

 

 

 

 

 

8

 

 

 

108

 

 

98

 

 

 

1,110

 

NGM

 

361

 

 

 

6

 

 

 

1

 

 

 

4

 

 

 

 

 

 

1

 

 

 

102

 

 

 

475

 

 

320

 

 

 

1,482

 

Corporate and Other (11)

 

 

 

 

 

 

 

34

 

 

 

74

 

 

 

2

 

 

 

 

 

 

13

 

 

 

123

 

 

 

 

 

 

Total Gold

$

1,900

 

 

$

53

 

 

$

69

 

 

$

77

 

 

$

4

 

 

$

20

 

 

$

477

 

 

$

2,600

 

 

1,751

 

 

$

1,485