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

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

 

 

 

 

 

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

 

Newmont Delivered a Stable Q3 Performance

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

 

Third Quarter Dividend Declared Within Established Framework****

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

 

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

– Tom Palmer, Newmont President and Chief Executive Officer

 

*   Gold equivalent ounces (GEOs) calculated using Gold ($1,400/oz.), Copper ($3.50/lb.), Silver ($20.00/oz.), Lead ($1.00/lb.) and Zinc ($1.20/lb.) pricing for 2023.
**   Non-GAAP metrics; see reconciliations at the end of this release.
***   See discussion of outlook and cautionary statement at the end of this release regarding forward-looking statements. Revised outlook excludes Newcrest Mining Limited.
****   Expectations regarding 2023 dividend levels are forward-looking statements. The dividend framework is non-binding and an annualized dividend has not been declared by the Board. The declaration and payment of future quarterly dividends remains at the discretion of the Board of Directors and will depend on the Company’s financial results, cash flow and cash requirements, future prospects, and other factors deemed relevant by the Board. See cautionary statement at the end of this release.

 

 

Summary of Third Quarter Results

 

  Q3’23 Q2’23 Q1’23 Q3’22
Average realized gold price ($ per ounce) $ 1,920 $ 1,965 $ 1,906   $ 1,691  
Attributable gold production (million ounces)1   1.29   1.24   1.27     1.49  
Gold costs applicable to sales (CAS) ($ per ounce)2 $ 1,019 $ 1,054 $ 1,025   $ 968  
Gold all-in sustaining costs (AISC) ($ per ounce)2 $ 1,426 $ 1,472 $ 1,376   $ 1,271  
GAAP net income (loss) from continuing operations ($ millions) $ 157 $ 153 $ 339   $ 218  
Adjusted net income ($ millions)3 $ 286 $ 266 $ 320   $ 212  
Adjusted net income per share ($/diluted share)3 $ 0.36 $ 0.33 $ 0.40   $ 0.27  
Adjusted EBITDA ($ millions)3 $ 933 $ 910 $ 990   $ 850  
Cash flow from continuing operations ($ millions) $ 1,001 $ 656 $ 481   $ 466  
Capital expenditures ($ millions)4 $ 604 $ 616 $ 526   $ 529  
Free cash flow ($ millions)5 $ 397 $ 40 $ (45 ) $ (63 )

 

 

IMPROVED PRODUCTION AND CASH FLOWS DELIVERED IN THE THIRD QUARTER

 

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

 

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

 

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

 

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

 

THIRD QUARTER 2023 FINANCIAL AND PRODUCTION SUMMARY

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

1   Attributable gold production includes 52 thousand ounces for the third quarter of 2023, 51 thousand ounces for the second quarter of 2023, and 60 thousand ounces for the first quarter of 2023 and 81 thousand ounces for the third quarter of 2022 from the Company’s equity method investment in Pueblo Viejo (40%).
2   Non-GAAP measure. See end of this release for reconciliation to Costs applicable to sales.
3   Non-GAAP measure. See end of this release for reconciliation to Net income (loss) attributable to Newmont stockholders.
4   Capital expenditures refers to Additions to property plant and mine development from the Consolidated Statements of Cash Flows.
5   Non-GAAP measure. See end of this release for reconciliation to Net cash provided by operating activities.
6   Newmont has a 38.5% interest in Nevada Gold Mines in the U.S., which is accounted for using the proportionate consolidation method. In addition, Newmont has a 40% interest in Pueblo Viejo, which is accounted for as an equity method investment.
7   Non-GAAP measure. See end of this release for reconciliation.

 

Progressing Profitable Near-Term Projects from Unmatched Organic Pipeline

 

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

 

Additional projects not listed below represent incremental improvements to the Company’s outlook.

  • Tanami Expansion 2 (Australia) secures Tanami’s future as a long-life, low-cost producer by extending mine life beyond 2040 through the addition of a 1,460 meter hoisting shaft and supporting infrastructure to process 3.3 million tonnes per year and provide a platform for future growth. The expansion is expected to increase average annual gold production by approximately 150,000 to 200,000 ounces per year for the first five years and reduce operating costs by approximately 10 percent, bringing average all-in sustaining costs to $900 to $1,000 per ounce for Tanami (2026-2030). Commercial production for the project is expected in the second half of 2025. Total capital costs are estimated to be between $1.2 and $1.3 billion. Development costs (excluding capitalized interest) since approval were $677 million, of which $178 million related to the nine months ended September 30, 2023.
  • Ahafo North (Africa) expands our existing footprint in Ghana with four open pit mines and a stand-alone mill located approximately 30 kilometers from the Company’s Ahafo South operations. The project is expected to add between 275,000 and 325,000 ounces per year with all-in sustaining costs of $800 to $900 per ounce for the first five full years of production. Ahafo North is the best unmined gold deposit in West Africa with approximately 3.8 million ounces of Reserves and 1.4 million ounces of Measured, Indicated and Inferred Resources2 and significant upside potential to extend beyond Ahafo North’s current 13-year mine life. Commercial production for the project is expected in the second half of 2025. Total capital costs are estimated to be between $950 and $1,050 million. Development costs (excluding capitalized interest) since approval were $333 million, of which $121 million related to the nine months ended September 30, 2023.
  • Pamour (North America) extends the life of Porcupine and maintains production beyond 2024. The project will optimize mill capacity, adding volume and supporting high grade ore from Borden and Hoyle Pond, while supporting further exploration in a highly prospective and proven mining district. An investment decision was reached in October of 2023, with first ore expected in 2024. Commercial production for the project is expected in the fourth quarter of 2025. Development capital costs are estimated to be between $350 and $450 million.
  • Cerro Negro District Expansion 1 (South America) includes the simultaneous development of the Marianas and Eastern districts to extend the mine life of Cerro Negro beyond 2030. The project is expected to improve production and provides a platform for further exploration and future growth through additional expansions. Development capital costs for the project are estimated to be between $350 and $450 million. In the third quarter of 2023 Newmont declared commercial production for San Marcos, the first of six ore bodies associated with the expansion project.
  • Yanacocha Sulfides (South America) has been deferred for at least two years from the previously planned investment decision date in 2024, representing the first step to Newmont delivering on its portfolio optimization strategy. Yanacocha Sulfides will develop the first phase of sulfide deposits and an integrated processing circuit, including an autoclave to produce 45% gold, 45% copper and 10% silver. The first phase focuses on developing the Yanacocha Verde and Chaquicocha deposits to extend Yanacocha’s operations beyond 2040 with second and third phases having the potential to extend life for multiple decades.

 

1   Project estimates remain subject to change based upon uncertainties, including future market conditions, macroeconomic and geopolitical conditions, changes in interest rates, inflation, commodities and raw materials prices, supply chain disruptions, labor markets, engineering and mine plan assumptions, future funding decisions, consideration of strategic capital allocation and other factors, which may impact estimated capital expenditures, AISC and timing of projects. See end of this release for cautionary statement regarding forward-looking statements.  
2   Total resources presented for Ahafo North includes Measured and Indicated resources of 910 thousand gold ounces and Inferred resources of 490 thousand gold ounces. See cautionary statement at the end of this release.  

 

Revised 2023 Outlook Incorporating the Resolution of the Peñasquito Strike

 

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

 

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

 

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

 

Standalone Newmont 2023 Outlook a 2023E
Gold ($1,900/oz price assumption)
Attributable Gold Production (Moz) b 5.3
Gold CAS ($/oz) $1,000
Gold AISC ($/oz) c $1,400
Copper ($3.50/lb price assumption)
Copper Production (Mlb) 100
Copper CAS ($/lb) $2.00
Copper AISC ($/lb) c $2.50
Silver ($23.00/oz price assumption)
Silver Production (Moz) 15
Silver CAS ($/oz) $16.00
Silver AISC ($/oz) c $21.60
Lead ($0.95/lb price assumption)
Lead Production (Mlb) 100
Lead CAS ($/lb) $0.80
Lead AISC ($/lb) c $1.00
Zinc ($1.15/lb price assumption)
Zinc Production (Mlb) 230
Zinc CAS ($/lb) $1.10
Zinc AISC ($/lb) c $1.60
Attributable Capital
Sustaining Capital ($M) $1,400
Development Capital ($M) $1,100
Consolidated Expenses
Exploration & Advanced Projects ($M) $500
General & Administrative ($M) $275
Interest Expense ($M) $210
Depreciation & Amortization ($M) $2,000
Adjusted Tax Rate d,e 32% – 36%
a   2023 outlook projections are considered forward-looking statements and represent management’s good faith estimates or expectations of future production results as of October 26, 2023, excluding Newcrest Mining Limited. Outlook is based upon certain assumptions, including, but not limited to, metal prices, oil prices, certain exchange rates and other assumptions. For example, revised 2023 Outlook assumes $1,900/oz Au, $3.50/lb Cu, $23.00/oz Ag, $1.15/lb Zn, $0.95/lb Pb, $0.70 AUD/USD exchange rate, $0.75 CAD/USD exchange rate and $80/barrel WTI. Production, CAS, AISC and capital estimates exclude projects that have not yet been approved, except for Cerro Negro District Expansion 1 which is included in Outlook. The potential impact on inventory valuation as a result of lower prices, input costs, and project decisions are not included as part of this Outlook. Assumptions used for purposes of Outlook may prove to be incorrect and actual results may differ from those anticipated, including variation beyond a +/-5% range. Outlook cannot be guaranteed. As such, investors are cautioned not to place undue reliance upon Outlook and forward-looking statements as there can be no assurance that the plans, assumptions or expectations upon which they are placed will occur. Amounts may not recalculate to totals due to rounding. See cautionary statement at the end of this release.  
b   Attributable production includes Newmont’s 40% interest in Pueblo Viejo, which is accounted for as an equity method investment.  
c   All-in sustaining costs (AISC) as used in the Company’s Outlook is a non-GAAP metric; see below for further information and reconciliation to consolidated 2023 CAS outlook.  
d   The adjusted tax rate excludes certain items such as tax valuation allowance adjustments.  
e   Assuming average prices of $1,900 per ounce for gold, $3.50 per pound for copper, $23.00 per ounce for silver, $0.95 per pound for lead, and $1.15 per pound for zinc and achievement of current production, sales and cost estimates, we estimate our consolidated adjusted effective tax rate related to continuing operations for 2023 will be between 32%-36%.

 

 

 

  Three Months Ended September 30,   Nine Months Ended September 30,
Operating Results 2023 2022 % Change   2023 2022 % Change
Attributable Sales (koz)              
Attributable gold ounces sold (1)   1,229   1,369 (10 )%     3,614   4,115 (12 )%
Attributable gold equivalent ounces sold   59   281 (79 )%     575   964 (40 )%
               
Average Realized Price ($/oz, $/lb)              
Average realized gold price $ 1,920 $ 1,691 14 %   $ 1,930 $ 1,806 7 %
Average realized copper price $ 3.68 $ 2.80 31 %   $ 3.71 $ 3.54 5 %
Average realized silver price (2) N.M. $ 15.42 N.M.   $ 20.18 $ 17.81 13 %
Average realized lead price (2) N.M. $ 0.86 N.M.   $ 0.90 $ 0.92 (2 )%
Average realized zinc price (2) N.M. $ 1.25 N.M.   $ 0.97 $ 1.41 (31 )%
               
Attributable Production (koz)              
CC&V   45   47 (4 )%     134   125 7 %
Musselwhite   48   44 9 %     130   115 13 %
Porcupine   64   74 (14 )%     190   201 (5 )%
Éléonore   50   57 (12 )%     164   148 11 %
Peñasquito (2)     182 (100 )%     123   440 (72 )%
Merian (75%)   62   65 (5 )%     164   212 (23 )%
Cerro Negro   71   67 6 %     186   209 (11 )%
Yanacocha (3)   87   53 64 %     208   172 21 %
Boddington   181   174 4 %     589   589 %
Tanami   123   122 1 %     312   355 (12 )%
Ahafo   133   155 (14 )%     398   397 %
Akyem   75   99 (24 )%     195   298 (35 )%
Nevada Gold Mines   300   267 12 %     848   845 %
Total Gold (excluding equity method investments)   1,239   1,406 (12 )%     3,641   4,106 (11 )%
Pueblo Viejo (40%) (4)   52   81 (36 )%     163   220 (26 )%
Total Gold   1,291   1,487 (13 )%     3,804   4,326 (12 )%
               
Peñasquito (2)     254 (100 )%     413   819 (50 )%
Boddington   58   45 29 %     189   160 18 %
Total Gold Equivalent Ounces   58   299 (81 )%     602   979 (39 )%
               
CAS Consolidated ($/oz, $/GEO)              
CC&V $ 1,253 $ 1,325 (5 )%   $ 1,165 $ 1,265 (8 )%
Musselwhite $ 1,045 $ 1,113 (6 )%   $ 1,230 $ 1,257 (2 )%
Porcupine $ 1,189 $ 970 23 %   $ 1,160 $ 1,038 12 %
Éléonore $ 1,338 $ 1,171 14 %   $ 1,280 $ 1,305 (2 )%
Peñasquito (2) N.M. $ 757 N.M.   $ 1,196 $ 791 51 %
Merian (75%) $ 1,261 $ 1,041 21 %   $ 1,231 $ 947 30 %
Cerro Negro $ 1,216 $ 1,068 14 %   $ 1,317 $ 986 34 %
Yanacocha (3) $ 1,057 $ 1,415 (25 )%   $ 1,102 $ 1,130 (2 )%
Boddington $ 848 $ 839 1 %   $ 821 $ 798 3 %
Tanami $ 655 $ 637 3 %   $ 783 $ 641 22 %
Ahafo $ 969 $ 1,011 (4 )%   $ 957 $ 984 (3 )%
Akyem $ 1,032 $ 776 33 %   $ 958 $ 737 30 %
Nevada Gold Mines $ 992 $ 1,104 (10 )%   $ 1,049 $ 1,010 4 %
Total Gold $ 1,019 $ 968 5 %   $ 1,033 $ 931 11 %
Total Gold (by-product) (5) $ 1,022 $ 907 13 %   $ 988 $ 847 17 %
               
Peñasquito (2) N.M. $ 699 N.M.   $ 1,183 $ 815 45 %
Boddington $ 816 $ 776 5 %   $ 797 $ 768 4 %
Total Gold Equivalent Ounces $ 1,636 $ 712 130 %   $ 1,056 $ 807 31 %
  Three Months Ended September 30,   Nine Months Ended September 30,
Operating Results (continued) 2023 2022 % Change   2023 2022 % Change
AISC Consolidated ($/oz, $/GEO)                
CC&V $ 1,819 $ 1,750 4 %   $ 1,603 $ 1,661 (3 )%
Musselwhite $ 1,715 $ 1,533 12 %   $ 1,869 $ 1,619 15 %
Porcupine $ 1,644 $ 1,199 37 %   $ 1,545 $ 1,271 22 %
Éléonore $ 2,107 $ 1,570 34 %   $ 1,855 $ 1,675 11 %
Peñasquito (2) N.M. $ 982 N.M.     $ 1,569 $ 1,002 57 %
Merian (75%) $ 1,652 $ 1,252 32 %   $ 1,580 $ 1,131 40 %
Cerro Negro $ 1,438 $ 1,411 2 %   $ 1,556 $ 1,248 25 %
Yanacocha (3) $ 1,187 $ 1,676 (29 )%   $ 1,290 $ 1,362 (5 )%
Boddington $ 1,123 $ 1,001 12 %   $ 1,039 $ 921 13 %
Tanami $ 890 $ 925 (4 )%   $ 1,066 $ 930 15 %
Ahafo $ 1,208 $ 1,161 4 %   $ 1,269 $ 1,167 9 %
Akyem $ 1,332 $ 930 43 %   $ 1,260 $ 900 40 %
Nevada Gold Mines $ 1,307 $ 1,358 (4 )%   $ 1,364 $ 1,232 11 %
Total Gold $ 1,426 $ 1,271 12 %   $ 1,425 $ 1,209 18 %
Total Gold (by-product) (5) $ 1,467 $ 1,268 16 %   $ 1,451 $ 1,192 22 %
                 
Peñasquito (2) N.M. $ 982 N.M.     $ 1,648 $ 1,092 51 %
Boddington $ 1,108 $ 873 27 %   $ 1,033 $ 879 18 %
Total Gold Equivalent Ounces $ 2,422 $ 999 142 %   $ 1,511 $ 1,098 38 %

 

(1)   Attributable gold ounces from the Pueblo Viejo mine, an equity method investment, are not included in attributable gold ounces sold.  
(2)   For the three months ended September 30, 2023, Peñasquito had no production due to the suspension of operations as a result of the Union labor strike. Sales activity recognized in the third quarter of 2023 is related to adjustments on provisionally priced concentrate sales subject to final settlement. Consequently, price per ounce/pound metrics are not meaningful (“N.M.”).  
(3)   The Company recognized amounts attributable to noncontrolling interest for Yanacocha during the period prior to acquiring Sumitomo Corporation’s 5% interest in the second quarter of 2022.  
(4)   Represents attributable gold from Pueblo Viejo and does not include the Company’s other equity method investments. Attributable gold ounces produced at Pueblo Viejo are not included in attributable gold ounces sold, as noted in footnote 1. Income and expenses of equity method investments are included in Equity income (loss) of affiliates.  
(5)   Non-GAAP measure. See end of this release for reconciliation.  
 

 

NEWMONT CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited, in millions except per share)

 
  Three Months Ended
September 30,
  Nine Months Ended
September 30,
  2023   2022   2023   2022
               
Sales $ 2,493     $ 2,634     $ 7,855     $ 8,715  
               
Costs and expenses:              
Costs applicable to sales (1)   1,371       1,545       4,396       4,688  
Depreciation and amortization   480       508       1,427       1,614  
Reclamation and remediation   166       53       298       163  
Exploration   78       69       192       169  
Advanced projects, research and development   53       80       132       169  
General and administrative   70       73       215       210  
Other expense, net   37       11       86       68  
    2,255       2,339       6,746       7,081  
Other income (expense):              
Other income (loss), net   42       56       124       (128 )
Interest expense, net of capitalized interest   (48 )     (55 )     (162 )     (174 )
    (6 )     1       (38 )     (302 )
Income (loss) before income and mining tax and other items   232       296       1,071       1,332  
Income and mining tax benefit (expense)   (73 )     (96 )     (449 )     (343 )
Equity income (loss) of affiliates   3       25       44       81  
Net income (loss) from continuing operations   162       225       666       1,070  
Net income (loss) from discontinued operations   1       (5 )     15       19  
Net income (loss)   163       220       681       1,089  
Net loss (income) attributable to noncontrolling interests   (5 )     (7 )     (17 )     (41 )
Net income (loss) attributable to Newmont stockholders $ 158     $ 213     $ 664     $ 1,048  
               
Net income (loss) attributable to Newmont stockholders:              
Continuing operations $ 157     $ 218     $ 649     $ 1,029  
Discontinued operations   1       (5 )     15       19  
  $ 158     $ 213     $ 664     $ 1,048  
               
Weighted average common shares (millions):              
Basic   795       794       795       793  
Effect of employee stock-based awards   1       1     $       2  
Diluted   796       795       795       795  
               
Net income (loss) attributable to Newmont stockholders per common share:              
Basic:              
Continuing operations $ 0.20     $ 0.28     $ 0.82     $ 1.30  
Discontinued operations         (0.01 )     0.02       0.02  
  $ 0.20     $ 0.27     $ 0.84     $ 1.32  
Diluted:              
Continuing operations $ 0.20     $ 0.28     $ 0.82     $ 1.30  
Discontinued operations         (0.01 )     0.02       0.02  
  $ 0.20     $ 0.27     $ 0.84     $ 1.32  

 

(1)   Excludes Depreciation and amortization and Reclamation and remediation.  
 

 

NEWMONT CORPORATION|
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited, in millions)

 
  At September 30,
2023
  At December 31,
2022
ASSETS      
Cash and cash equivalents $                        3,190     $                        2,877  
Time deposits and other investments                                  24                                   880  
Trade receivables                                  78                                   366  
Inventories                            1,127                                   979  
Stockpiles and ore on leach pads                               829                                   774  
Other current assets                               707                                   639  
Current assets                            5,955                                6,515  
Property, plant and mine development, net                          24,474                              24,073  
Investments                            3,133                                3,278  
Stockpiles and ore on leach pads                            1,740                                1,716  
Deferred income tax assets                               138                                   173  
Goodwill                            1,971                                1,971  
Other non-current assets                               673                                   756  
Total assets $                      38,084     $                      38,482  
       
LIABILITIES      
Accounts payable $                           651     $                           633  
Employee-related benefits                               345                                   399  
Income and mining taxes payable                               143                                   199  
Lease and other financing obligations                                  94                                      96  
Other current liabilities                            1,575                                1,599  
Current liabilities                            2,808                                2,926  
Debt                            5,575                                5,571  
Lease and other financing obligations                               418                                   465  
Reclamation and remediation liabilities                            6,714                                6,578  
Deferred income tax liabilities                            1,696                                1,809  
Employee-related benefits                               397                                   342  
Silver streaming agreement                               787                                   828  
Other non-current liabilities                               429                                   430  
Total liabilities                          18,824                              18,949  
       
Commitments and contingencies (1)      
       
EQUITY      
Common stock                            1,281                                1,279  
Treasury stock                              (263 )                                (239 )
Additional paid-in capital                          17,425                              17,369  
Accumulated other comprehensive income (loss)                                    8                                      29  
Retained earnings                               623                                   916  
Newmont stockholders’ equity                          19,074                              19,354  
Noncontrolling interests                               186                                   179  
Total equity                          19,260                              19,533  
Total liabilities and equity $                      38,084     $                      38,482

 

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

 

NEWMONT CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited, in millions)

 
  Three Months Ended
September 30,
  Nine Months Ended
September 30,
  2023   2022   2023   2022
Operating activities:              
Net income (loss) $ 163     $ 220     $ 681     $ 1,089  
Non-cash adjustments:              
Depreciation and amortization   480       508       1,427       1,614  
Net loss (income) from discontinued operations   (1 )     5       (15 )     (19 )
Reclamation and remediation   167       46       287       149  
Stock-based compensation   16       17       58       57  
Change in fair value of investments   41       (5 )     42       91  
(Gain) loss on asset and investment sales, net   2       (9 )     (34 )     26  
Deferred income taxes   (24 )     (34 )     (3 )     (145 )
Charges from pension settlement                     130  
Other non-cash adjustments   30       28       37       8  
Net change in operating assets and liabilities   127       (310 )     (342 )     (812 )
Net cash provided by (used in) operating activities of continuing operations   1,001       466       2,138       2,188  
Net cash provided by (used in) operating activities of discontinued operations   2       7       9       22  
Net cash provided by (used in) operating activities   1,003       473       2,147       2,210  
               
Investing activities:          
Additions to property, plant and mine development   (604 )     (529 )     (1,746 )     (1,485 )
Proceeds from maturities of investments   374             1,355        
Purchases of investments   (3 )     (657 )     (545 )     (665 )
Proceeds from asset and investment sales   5       16       219       57  
Contributions to equity method investees   (26 )     (61 )     (90 )     (152 )
Return of investment from equity method investees         13       30       52  
Other   1       (5 )     24       (64 )
Net cash provided by (used in) investing activities   (253 )     (1,223 )     (753 )     (2,257 )
               
Financing activities:          
Dividends paid to common stockholders   (318 )     (437 )     (954 )     (1,310 )
Distributions to noncontrolling interests   (41 )     (37 )     (107 )     (140 )
Funding from noncontrolling interests   32       33       107       89  
Payments on lease and other financing obligations   (16 )     (16 )     (48 )     (50 )
Payments for withholding of employee taxes related to stock-based compensation   (2 )     (2 )     (24 )     (38 )
Acquisition of noncontrolling interests                     (348 )
Repayment of debt                     (89 )
Other   (36 )     (1 )     (39 )     9  
Net cash provided by (used in) financing activities   (381 )     (460 )     (1,065 )     (1,877 )
Effect of exchange rate changes on cash, cash equivalents and restricted cash   (5 )     (20 )     (9 )     (29 )
Net change in cash, cash equivalents and restricted cash   364       (1,230 )     320       (1,953 )
Cash, cash equivalents and restricted cash at beginning of period   2,900       4,370       2,944       5,093  
Cash, cash equivalents and restricted cash at end of period $ 3,264     $ 3,140     $ 3,264     $ 3,140  
               
Reconciliation of cash, cash equivalents and restricted cash:          
Cash and cash equivalents $ 3,190     $ 3,058     $ 3,190     $ 3,058  
Restricted cash included in Other current assets   1       18       1       18  
Restricted cash included in Other non-current assets   73       64       73       64  
Total cash, cash equivalents and restricted cash $ 3,264     $ 3,140     $ 3,264     $ 3,140  

 

 

Non-GAAP Financial Measures

 

Non-GAAP financial measures are intended to provide additional information only and do not have any standard meaning prescribed by GAAP. These measures should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP. Refer to Non-GAAP Financial Measures within Part II, Item 7 within our Form 10-K for the year ended December 31, 2022, filed with the SEC on February 23, 2023 for further information on the non-GAAP financial measures presented below, including why management believes that its presentation of non-GAAP financial measures provides useful information to investors.

 

Adjusted net income (loss)

 

Net income (loss) attributable to Newmont stockholders is reconciled to Adjusted net income (loss) as follows:

 

  Three Months Ended
September 30, 2023
  Nine Months Ended
September 30, 2023
      per share data (1)       per share data (1)
      basic   diluted       basic   diluted
Net income (loss) attributable to Newmont stockholders $ 158     $ 0.20     $ 0.20     $ 664     $ 0.84     $ 0.84  
Net loss (income) attributable to Newmont stockholders from discontinued operations   (1 )                 (15 )     (0.02 )     (0.02 )
Net income (loss) attributable to Newmont stockholders from continuing operations   157       0.20       0.20       649       0.82       0.82  
Reclamation and remediation charges (2)   104       0.14       0.14       102       0.13       0.13  
Change in fair value of investments (3)   41       0.05       0.05       42       0.05       0.05  
Newcrest transaction-related costs (4)   16       0.02       0.02       37       0.05       0.05  
(Gain) loss on asset and investment sales, net (5)   2                   (34 )     (0.04 )     (0.04 )
Restructuring and severance (6)   7       0.01       0.01       19       0.03       0.03  
Impairment charges (7)   2                   10       0.01       0.01  
Settlement costs (8)   2                   2              
Other (9)   (1 )                 (5 )            
Tax effect of adjustments (10)   (47 )     (0.06 )     (0.06 )     (48 )     (0.07 )     (0.07 )
Valuation allowance and other tax adjustments (11)   3                   98       0.12       0.12  
Adjusted net income (loss) $ 286     $ 0.36     $ 0.36     $ 872     $ 1.10     $ 1.10  
                     
Weighted average common shares (millions): (12)       795       796           795       795  
(1)   Per share measures may not recalculate due to rounding.  
(2)   Reclamation and remediation charges, included in Reclamation and remediation, represent revisions to reclamation and remediation plans at the Company’s former operating properties and historic mining operations that have entered the closure phase and have no substantive future economic value. Refer to Note 5 of the Condensed Consolidated Financial Statement for further information.  
(3)   Change in fair value of investments, included in Other income (loss), net, primarily represents unrealized gains and losses related to the Company’s investment in current and non-current marketable equity securities.  
(4)   Newcrest transaction-related costs, included in Other expense, net, primarily represents costs incurred related to the Newcrest transaction. Refer to Note 1 of the Condensed Consolidated Financial Statements for further information.  
(5)   (Gain) loss on asset and investment sales, net, included in Other income (loss), net, primarily represents the net gain recognized on the exchange of the previously held Maverix investment for Triple Flag and the subsequent sale of the Triple Flag investment. Refer to Note 11 of the Condensed Consolidated Financial Statements for further information.  
(6)   Restructuring and severance, included in Other expense, net, primarily represents severance and related costs associated with significant organizational or operating model changes implemented by the Company.  
(7)   Impairment charges, included in Other expense, net, represents non-cash write-downs of various assets that are no longer in use and materials and supplies inventories.  
(8)   Settlement costs, included in Other expense, net, are primarily comprised of litigation expenses.  
(9)   Other represents income received on the favorable settlement of certain matters that were outstanding at the time of sale of the related investment in 2022. Amounts included in Other income (loss), net.  
(10)   The tax effect of adjustments, included in Income and mining tax benefit (expense), represents the tax effect of adjustments in footnotes (2) through (9), as described above, and are calculated using the applicable regional tax rate.  
(11)   Valuation allowance and other tax adjustments, included in Income and mining tax benefit (expense), is recorded for items such as foreign tax credits, capital losses, disallowed foreign losses, and the effects of changes in foreign currency exchange rates on deferred tax assets and deferred tax liabilities. The adjustment for the three and nine months ended September 30, 2023 reflects the net increase or (decrease) to net operating losses, capital losses, tax credit carryovers, and other deferred tax assets subject to valuation allowance of $69 and $126, the effects of changes in foreign exchange rates on deferred tax assets and liabilities of $(73) and $(52), net reductions to the reserve for uncertain tax positions of $4 and $18, other tax adjustments of $3 and $6. For further information on reductions to the reserve for uncertain tax positions, refer to Note 8 of the Condensed Consolidated Financial Statements.  
(12)   Adjusted net income (loss) per diluted share is calculated using diluted common shares in accordance with GAAP.

 

 

 

 

  Three Months Ended
September 30, 2022
  Nine Months Ended
September 30, 2022
      per share data (1)       per share data (1)
      basic   diluted       basic   diluted
Net income (loss) attributable to Newmont stockholders $ 213     $ 0.27     $ 0.27     $ 1,048     $ 1.32     $ 1.32  
Net loss (income) attributable to Newmont stockholders from discontinued operations   5       0.01       0.01       (19 )     (0.02 )     (0.02 )
Net income (loss) attributable to Newmont stockholders from continuing operations   218       0.28       0.28       1,029       1.30       1.30  
Pension settlements (2)                     130       0.16       0.16  
Change in fair value of investments (3)   (5 )     (0.01 )     (0.01 )     91       0.11       0.11  
(Gain) loss on asset and investment sales, net (4)   (9 )     (0.01 )     (0.01 )     26       0.03       0.03  
Settlement costs (5)   2                   20       0.03       0.03  
Reclamation and remediation charges (6)                     13       0.02       0.02  
Restructuring and severance (7)   2                   3              
Impairment charges (8)   1                   3              
COVID-19 specific costs (9)                     1              
Other (10)                     (18 )     (0.03 )     (0.03 )
Tax effect of adjustments (11)   1                   (61 )     (0.07 )     (0.07 )
Valuation allowance and other tax adjustments (12)   2       0.01       0.01       (117 )     (0.14 )     (0.14 )
Adjusted net income (loss) $ 212     $ 0.27     $ 0.27     $ 1,120     $ 1.41     $ 1.41  
                     
Weighted average common shares (millions): (13)       794       795           793       795
(1)   Per share measures may not recalculate due to rounding.  
(2)   Pension settlement, included in Other income (loss), net, represent pension settlement charges in 2022 related to the annuitization of certain defined benefit plans. For further information, refer to Note 7 of the Condensed Consolidated Financial Statements.  
(3)   Change in fair value of investments, included in Other income (loss), net, primarily represents unrealized gains and losses related to the Company’s investment in current and non-current marketable and other equity securities.  
(4)   (Gain) loss on asset and investment sales, included in Other income (loss), net, primarily represents the loss recognized on the sale of the La Zanja equity method investment partially offset by a gain on the sale of a royalty in NGM during the third quarter of 2022. For further information, refer to Note 1 of the Condensed Consolidated Financial Statements.  
(5)   Settlement costs, included in Other expense, net, primarily are comprised of legal settlement and a voluntary contribution made to support humanitarian efforts in Ukraine.  
(6)   Reclamation and remediation charges, included in Reclamation and remediation, represent revisions to reclamation and remediation plans at the Company’s former operating properties and historic mining operations that have entered the closure phase and have no substantive future economic value. For further information, refer to Note 5 of the Condensed Consolidated Financial Statements.  
(7)   Restructuring and severance, included in Other expense, net, primarily represents severance and related costs associated with significant organizational or operating model changes implemented by the Company.  
(8)   Impairment charges, included in Other expense, net, represents non-cash write-downs of various assets that are no longer in use and materials and supplies inventories.  
(9)   COVID-19 specific costs, included in Other expense, net, primarily include amounts distributed from Newmont Global Community Support Fund to help host communities, governments and employees combat the COVID-19 pandemic.  
(10)   Primarily comprised of a reimbursement of certain historical Goldcorp operational expenses related to a legacy project that reached commercial production in the second quarter of 2022, included in Other income (loss), net.  
(11)   The tax effect of adjustments, included in Income and mining tax benefit (expense), represents the tax effect of adjustments in footnotes (2) through (10), as described above, and are calculated using the applicable regional tax rate.  
(12)   Valuation allowance and other tax adjustments, included in Income and mining tax benefit (expense), is recorded for items such as foreign tax credits, capital losses, disallowed foreign losses, and the effects of changes in foreign currency exchange rates on deferred tax assets and deferred tax liabilities. The adjustment for the three and nine months ended September 30, 2022 reflects the net increase or (decrease) to net operating losses, capital losses, tax credit carryovers, and other deferred tax assets subject to valuation allowance of $19 and $68, the effects of changes in foreign exchange rates on deferred tax assets and liabilities of $(22) and $(48), net reductions to the reserve for uncertain tax positions of $4 and $(13), other tax adjustments of $1 and $1, and a tax settlement in Mexico of $— and $(125). For further information on reductions to the reserve for uncertain tax positions, refer to Note 8 of the Condensed Consolidated Financial Statements.  
(13)   Adjusted net income (loss) per diluted share is calculated using diluted common shares in accordance with GAAP.  

 

 

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

 

Net income (loss) attributable to Newmont stockholders is reconciled to EBITDA and Adjusted EBITDA as follows:

 

Three Months Ended
September 30,
  Nine Months Ended
September 30,
2023   2022   2023   2022
Net income (loss) attributable to Newmont stockholders $ 158     $ 213     $ 664     $ 1,048  
Net income (loss) attributable to noncontrolling interests   5       7       17       41  
Net loss (Income) from discontinued operations   (1 )     5       (15 )     (19 )
Equity loss (income) of affiliates   (3 )     (25 )     (44 )     (81 )
Income and mining tax expense (benefit)   73       96       449       343  
Depreciation and amortization   480       508       1,427       1,614  
Interest expense, net of capitalized interest   48       55       162       174  
EBITDA $ 760     $ 859     $ 2,660     $ 3,120  
Adjustments:              
Reclamation and remediation charges (1) $ 104     $     $ 102     $ 13  
Change in fair value of investments (2)   41       (5 )     42       91  
Newcrest transaction-related costs (3)   16             37        
(Gain) loss on asset and investment sales, net (4)   2       (9 )     (34 )     26  
Restructuring and severance (5)   7       2       19       3  
Impairment charges (6)   2       1       10       3  
Settlement costs (7)   2       2       2       20  
Pension settlement (8)                     130  
COVID-19 specific costs (9)                     1  
Other (10)   (1 )           (5 )     (18 )
Adjusted EBITDA $ 933     $ 850     $ 2,833     $ 3,389  
(1)   Reclamation and remediation charges, included in Reclamation and remediation, represent revisions to reclamation and remediation plans at the Company’s former operating properties and historic mining operations that have entered the closure phase and have no substantive future economic value. For further information, refer to Note 5 of the Condensed Consolidated Financial Statements.  
(2)   Change in fair value of investments, included in Other income (loss), net, primarily represents unrealized gains and losses related to the Company’s investments in current and non-current marketable equity securities.  
(3)   Newcrest transaction-related costs, included in Other expense, net, primarily represents costs incurred related to the Newcrest transaction in 2023. Refer to Note 1 of the Condensed Consolidated Financial Statements for further information.  
(4)   (Gain) loss on asset and investment sales, net, included in Other income (loss), net, in 2023 is primarily comprised of the net gain recognized on the exchange of the previously held Maverix investment for Triple Flag and the subsequent sale of the Triple Flag investment. Refer to Note 11 of the Condensed Consolidated Financial Statements for further information. Amounts related to 2022 are primarily comprised of the loss recognized on the sale of the La Zanja equity method investment, partially offset by a gain on the sale of a royalty at NGM in the third quarter of 2022. Refer to Note 1 of the Condensed Consolidated Financial Statements for further information.  
(5)   Restructuring and severance, included in Other expense, net, primarily represents severance and related costs associated with significant organizational or operating model changes implemented by the Company for all periods presented.  
(6)   Impairment charges, included in Other expense, net, represents non-cash write-downs of various assets that are no longer in use and materials and supplies inventories.  
(7)   Settlement costs, included in Other expense, net, are primarily comprised of litigation expenses in 2023 and a legal settlement and a voluntary contribution made to support humanitarian efforts in Ukraine in 2022.  
(8)   Pension settlement, included in Other income (loss), net, represents pension settlement charges in 2022 related to the annuitization of certain defined benefit plans. For further information, refer to Note 7 of the Condensed Consolidated Financial Statements.  
(9)    COVID-19 specific costs, included in Other expense, net, primarily include amounts distributed from Newmont Global Community Support Fund to help host communities, governments and employees combat the COVID-19 pandemic.  
(10)   Other, included in Other income (loss), net, in 2023 represents income received during the first quarter of 2023, on the favorable settlement of certain matters that were outstanding at the time of sale of the related investment in 2022. Amounts related to 2022 are primarily comprised of a reimbursement of certain historical Goldcorp operational expenses related to a legacy project that reached commercial production in the second quarter of 2022.  

 

 

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

 

  Three Months Ended
September 30,
  Nine Months Ended
September 30,
  2023   2022   2023   2022
Income (Loss) before Income and Mining Tax and other Items, NGM (1) $ 151   $ 49   $ 376   $ 293
Depreciation and amortization (1)   112     109     323     361
NGM EBITDA $ 263   $ 158   $ 699   $ 654
(1)   Refer to Note 3 of the Condensed Consolidated Financial Statements.  

 

Free Cash Flow

 

The following table sets forth a reconciliation of Free Cash Flow to Net cash provided by (used in) operating activities, which the Company believes to be the GAAP financial measure most directly comparable to Free Cash Flow, as well as information regarding Net cash provided by (used in) investing activities and Net cash provided by (used in) financing activities.

 

 

  Three Months Ended
September 30,
  Nine Months Ended
September 30,
  2023   2022   2023   2022
Net cash provided by (used in) operating activities $ 1,003     $ 473     $ 2,147     $ 2,210  
Less: Net cash used in (provided by) operating activities of discontinued operations   (2 )     (7 )     (9 )     (22 )
Net cash provided by (used in) operating activities of continuing operations   1,001       466       2,138       2,188  
Less: Additions to property, plant and mine development   (604 )     (529 )     (1,746 )     (1,485 )
Free Cash Flow $ 397     $ (63 )   $ 392     $ 703  
               
Net cash provided by (used in) investing activities (1) $ (253 )   $ (1,223 )   $ (753 )   $ (2,257 )
Net cash provided by (used in) financing activities $ (381 )   $ (460 )   $ (1,065 )   $ (1,877  
(1) Net cash provided by (used in) investing activities includes Additions to property, plant and mine development, which is included in the Company’s computation of Free Cash Flow.​  

 

Attributable Free Cash Flow

 

Management uses Attributable Free Cash Flow as a non-GAAP measure to analyze cash flows generated from operations that are attributable to the Company. Attributable Free Cash Flow is Net cash provided by (used in) operating activities after deducting net cash flows from operations attributable to noncontrolling interests less Net cash provided by (used in) operating activities of discontinued operations after deducting net cash flows from discontinued operations attributable to noncontrolling interests less Additions to property, plant and mine development after deducting property, plant and mine development attributable to noncontrolling interests. The Company believes that Attributable Free Cash Flow is useful as one of the bases for comparing the Company’s performance with its competitors. Although Attributable Free Cash Flow and similar measures are frequently used as measures of cash flows generated from operations by other companies, the Company’s calculation of Attributable Free Cash Flow is not necessarily comparable to such other similarly titled captions of other companies.

 

The presentation of non-GAAP Attributable Free Cash Flow is not meant to be considered in isolation or as an alternative to Net income attributable to Newmont stockholders as an indicator of the Company’s performance, or as an alternative to Net cash provided by (used in) operating activities as a measure of liquidity as those terms are defined by GAAP, and does not necessarily indicate whether cash flows will be sufficient to fund cash needs. The Company’s definition of Attributable Free Cash Flow is limited in that it does not represent residual cash flows available for discretionary expenditures due to the fact that the measure does not deduct the payments required for debt service and other contractual obligations or payments made for business acquisitions. Therefore, the Company believes it is important to view Attributable Free Cash Flow as a measure that provides supplemental information to the Company’s Condensed Consolidated Statements of Cash Flows.

 

The following tables set forth a reconciliation of Attributable Free Cash Flow, a non-GAAP financial measure, to Net cash provided by (used in) operating activities, which the Company believes to be the GAAP financial measure most directly comparable to Attributable Free Cash Flow, as well as information regarding Net cash provided by (used in) investing activities and Net cash provided by (used in) financing activities.

 

  Three Months Ended September 30, 2023   Nine Months Ended September 30, 2023
  Consolidated   Attributable
to
noncontrolling
interests 
(1)
  Attributable to
Newmont
Stockholders
  Consolidated   Attributable
to
noncontrolling
interests 
(1)
  Attributable to
Newmont
Stockholders
Net cash provided by (used in) operating activities $ 1,003     $ (17 )   $ 986     $ 2,147     $ (29 )   $ 2,118  
Less: Net cash used in (provided by) operating activities of discontinued operations   (2 )           (2 )     (9 )           (9 )
Net cash provided by (used in) operating activities of continuing operations   1,001       (17 )     984       2,138       (29 )     2,109  
Less: Additions to property, plant and mine development (2)   (604 )     6       (598 )     (1,746 )     15       (1,731 )
Free Cash Flow $ 397     $ (11 )   $ 386     $ 392     $ (14 )   $ 378  
                       
Net cash provided by (used in) investing activities (3) $ (253 )           $ (753 )        
Net cash provided by (used in) financing activities $ (381 )           $ (1,065 )        
(1)   Adjustment to eliminate a portion of Net cash provided by (used in) operating activitiesNet cash provided by (used in) operating activities of discontinued operations and Additions to property, plant and mine development attributable to noncontrolling interests, which relates to Merian (25%).  
(2)   For the three months ended September 30, 2023, Merian had total consolidated Additions to property, plant and mine development of $26 on a cash basis. For the nine months ended September 30, 2023, Merian had total consolidated Additions to property, plant and mine development of $60 on a cash basis.  
(3) Net cash provided by (used in) investing activities includes Additions to property, plant and mine development, which is included in the Company’s computation of Free Cash Flow.

 

 

 

  Three Months Ended September 30, 2022   Nine Months Ended September 30, 2022
  Consolidated   Attributable
to
noncontrolling
interests 
(1)
  Attributable to
Newmont
Stockholders
  Consolidated   Attributable
to
noncontrolling
interests 
(1)
  Attributable to
Newmont
Stockholders
Net cash provided by (used in) operating activities $ 473     $ (11 )   $ 462     $ 2,210     $ (64 )   $ 2,146  
Less: Net cash used in (provided by) operating activities of discontinued operations   (7 )           (7 )     (22 )           (22 )
Net cash provided by (used in) operating activities of continuing operations   466       (11 )     455       2,188       (64 )     2,124  
Less: Additions to property, plant and mine development (2)   (529 )     4       (525 )     (1,485 )     25       (1,460 )
Free Cash Flow $ (63 )   $ (7 )   $ (70 )   $ 703     $ (39 )   $ 664  
                       
Net cash provided by (used in) investing activities (3) $ (1,223 )           $ (2,257 )        
Net cash provided by (used in) financing activities $ (460 )           $ (1,877 )        
(1)   Adjustment to eliminate a portion of Net cash provided by (used in) operating activitiesNet cash provided by (used in) operating activities of discontinued operations and Additions to property, plant and mine development attributable to noncontrolling interests, which relate to Merian (25%) for the three and nine months ended September 30, 2022, and Yanacocha (5%) for the nine months ended September 30, 2022.  
(2)   For the three months ended September 30, 2022, Yanacocha and Merian had total consolidated Additions to property, plant and mine development of $86 and $14, respectively, on a cash basis. For the nine months ended September 30, 2022, Yanacocha and Merian had total consolidated Additions to property, plant and mine development of $237 and $37, respectively, on a cash basis.  
(3)   Net cash provided by (used in) investing activities includes Additions to property, plant and mine development, which is included in the Company’s computation of Free Cash Flow.​  

 

Net Debt

 

Net Debt is calculated as Debt and Lease and other financing obligations less Cash and cash equivalents and time deposits included in Time deposits and other investments, as presented on the Condensed Consolidated Balance Sheets. Cash and cash equivalents and time deposits are subtracted from Debt and Lease and other financing obligations as these are highly liquid, low-risk investments and could be used to reduce the Company’s debt obligations.

 

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

 

At September 30,
2023
  At December 31,
2022
Debt $ 5,575     $ 5,571  
Lease and other financing obligations   512       561  
Less: Cash and cash equivalents   (3,190 )     (2,877 )
Less: Time deposits (1)         (829 )
Net debt $ 2,897   $ 2,426  
(1)   Time deposits are included in Time deposits and other investments on the Condensed Consolidated Balance Sheets. Refer to Note 11 of the Condensed Consolidated Financial Statements for further information.  

 

Costs applicable to sales per ounce/gold equivalent ounce

 

Costs applicable to sales per ounce/gold equivalent ounce are calculated by dividing the costs applicable to sales of gold and other metals by gold ounces or gold equivalent ounces sold, respectively. These measures are calculated for the periods presented on a consolidated basis.

 

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

 

Costs applicable to sales per gold ounce

 

  Three Months Ended
September 30,
  Nine Months Ended
September 30,
  2023   2022   2023   2022
Costs applicable to sales (1)(2) $ 1,273   $ 1,345   $ 3,789   $ 3,910
Gold sold (thousand ounces)   1,250     1,391     3,669     4,202
Costs applicable to sales per ounce (3) $ 1,019   $ 968   $ 1,033   $ 931
(1)   Includes by-product credits of $28 and $22 during the three months ended September 30, 2023 and 2022, respectively, and $86 and $75 during the nine months ended September 30, 2023 and 2022, respectively.  
(2)   Excludes Depreciation and amortization and Reclamation and remediation.  
(3)   Per ounce measures may not recalculate due to rounding.  

 

 

Costs applicable to sales per gold equivalent ounce

 

  Three Months Ended
September 30,
  Nine Months Ended
September 30,
  2023   2022   2023   2022
Costs applicable to sales (1)(2) $ 98   $ 200   $ 607   $ 778
Gold equivalent ounces sold – other metals (thousand ounces) (3)   59     281     575     964
Costs applicable to sales per gold equivalent ounce (4) $ 1,636   $ 712   $ 1,056   $ 807
(1)   Includes by-product credits of $1 and $2 during the three months ended September 30, 2023 and 2022, respectively, and $5 and $6 during the nine months ended September 30, 2023 and 2022, respectively.  
(2)   Excludes Depreciation and amortization and Reclamation and remediation.  
(3)   Gold equivalent ounces is calculated as pounds or ounces produced multiplied by the ratio of the other metals price to the gold price, using Gold ($1,400/oz.), Copper ($3.50/lb.), Silver ($20.00/oz.), Lead ($1.00/lb.) and Zinc ($1.20/lb.) pricing for 2023 and Gold ($1,200/oz.), Copper ($3.25/lb.), Silver ($23.00/oz.), Lead ($0.95/lb.) and Zinc ($1.15/lb.) pricing for 2022.  
(4)   Per ounce measures may not recalculate due to rounding.​  

 

 

Costs applicable to sales per gold ounce for Nevada Gold Mines (NGM)

 

  Three Months Ended
September 30,
  Nine Months Ended
September 30,
  2023   2022   2023   2022
Cost applicable to sales, NGM (1)(2) $ 298   $ 294   $ 888   $ 853
Gold sold (thousand ounces), NGM   301     267     847     845
Costs applicable to sales per ounce, NGM (3) $ 992   $ 1,104   $ 1,049   $ 1,010
(1)   See Note 3 to the Condensed Consolidated Financial Statements.  
(2)   Excludes Depreciation and amortization and Reclamation and remediation.  
(3)   Per ounce measures may not recalculate due to rounding.  

 

All-In Sustaining Costs

 

All-in sustaining costs represent the sum of certain costs, recognized as GAAP financial measures, that management considers to be associated with production. All-in sustaining costs per ounce amounts are calculated by dividing all-in sustaining costs by gold ounces or gold equivalent ounces sold.

 

 

                                       
Three Months Ended

September 30, 2023

Costs
Applicable
to
Sales
(1)(2)(3)(4)
  Reclamation
Costs
(5)
  Advanced
Projects,
Research and
Development
and
Exploration
(6)
  General and
Administrative
  Other
Expense,
Net
(7)
  Treatment
and
Refining
Costs
  Sustaining
Capital and
Lease
Related
Costs
(8)(9)
  All-In
Sustaining
Costs
  Ounces
(000)
Sold
  All-In
Sustaining
Costs Per
oz.
(10)
Gold                                      
CC&V $ 57   $ 3   $ 3   $   $   $   $ 20   $ 83   46     $ 1,819
Musselwhite   50     1     2                 28     81   47       1,715
Porcupine   73     5     3                 19     100   61       1,644
Éléonore   63     2     3         1         29     98   46       2,107
Peñasquito (11)   16     2                     5     23   (1 )   N.M.
Merian   104     2     4                 27     137   83       1,652
Cerro Negro   79     1     1         1         11     93   65       1,438
Yanacocha   90     6                     4     100   85       1,187
Boddington   157     5     1             4     42     209   186       1,123
Tanami   81     1                     28     110   123       890
Ahafo   133     5             1         27     166   137       1,208
Akyem   72     13         1             8     94   71       1,332
Nevada Gold Mines   298     4     4     2     2     2     82     394   301       1,307
Corporate and Other (12)           23     62     3         6     94        
Total Gold $ 1,273   $ 50   $ 44   $ 65   $ 8   $ 6   $ 336   $ 1,782   1,250     $ 1,426
                                       
Gold equivalent ounces – other metals (13)                                      
Peñasquito (11) $ 48   $ 7   $ 1   $   $ 1   $ 1   $ 11   $ 69   (2 )   N.M.
Boddington   50                     3     14     67   61     $ 1,108
Corporate and Other (12)           1     5     1         2     9        
Total Gold Equivalent Ounces $ 98   $ 7   $ 2   $ 5   $ 2   $ 4   $ 27   $ 145   59     $ 2,422
                                       
Consolidated $ 1,371   $ 57   $ 46   $ 70   $ 10   $ 10   $ 363   $ 1,927        
(1)   Excludes Depreciation and amortization and Reclamation and remediation.  
(2)   Includes by-product credits of $29 and excludes co-product revenues of $93.  
(3)   Includes stockpile, leach pad, and product inventory adjustments of $1 at Porcupine, $2 at Peñasquito, and $2 at NGM.  
(4)   Beginning January 1, 2023, COVID-19 specific costs incurred in the ordinary course of business are recognized in Costs applicable to sales.  
(5)   Reclamation costs include operating accretion and amortization of asset retirement costs of $25 and $32, respectively, and exclude accretion and reclamation and remediation adjustments at former operating properties that have entered the closure phase and have no substantive future economic value of $37 and $104, respectively.  
(6)   Advanced projects, research and development and exploration excludes development expenditures of $1 at CC&V, $2 at Porcupine $2 at Peñasquito, $5 at Merian, $2 at Cerro Negro, $7 at Tanami, $12 at Ahafo, $6 at Akyem, $4 at NGM, and $44 at Corporate and Other, totaling $85 related to developing new operations or major projects at existing operations where these projects will materially benefit the operation.  
(7)   Other expense, net is adjusted for Newcrest transaction-related costs of $16, restructuring and severance of $7, impairment charges of $2, settlement costs of $2.  
(8)   Excludes capitalized interest related to sustaining capital expenditures. See Liquidity and Capital Resources within Part I, Item 2, Management’s Discussion and Analysis for capital expenditures by segment.  
(9)   Includes finance lease payments and other costs for sustaining projects of $17.  
(10)   Per ounce measures may not recalculate due to rounding.  
(11)   For the three months ended September 30, 2023, Peñasquito had no production due to the Peñasquito labor strike. Sales activity recognized in the third quarter of 2023 at Peñasquito is related to adjustments on provisionally priced concentrate sales subject to final settlement. As such, the per ounce metrics are not meaningful (“N.M.”) for the current quarter.  
(12)   Corporate and Other includes the Company’s business activities relating to its corporate and regional offices and all equity method investments. Refer to Note 3 of the Condensed Consolidated Financial Statements for further information.  
(13)   Gold equivalent ounces is calculated as pounds or ounces produced multiplied by the ratio of the other metals price to the gold price, using Gold ($1,400/oz.), Copper ($3.50/lb.), Silver ($20.00/oz.), Lead ($1.00/lb.) and Zinc ($1.20/lb.) pricing for 2023.

 

 

 

Three Months Ended

September 30, 2022

Costs
Applicable
to
Sales
(1)(2)(3)
  Reclamation
Costs
(4)
  Advanced
Projects,
Research and
Development
and
Exploration
(5)
  General and
Administrative
  Other
Expense,
Net
(6)
  Treatment
and
Refining
Costs
  Sustaining
Capital
and Lease
Related
Costs
(7)(8)(9)
  All-In
Sustaining
Costs
  Ounces
(000)
Sold
  All-In
Sustaining
Costs Per
oz.
(10)
Gold                                      
CC&V $ 64   $ 4   $ 3   $     $ 1     $   $ 12   $ 84   48   $ 1,750
Musselwhite   47     1     2                     15     65   42     1,533
Porcupine   72     1     3                     12     88   73     1,199
Éléonore   64     3                         19     86   54     1,570
Peñasquito   109     3     1     1             8     20     142   144     982
Merian   89     1     4           1           13     108   86     1,252
Cerro Negro   71     2               2           18     93   66     1,411
Yanacocha   74     4     1           2           6     87   53     1,676
Boddington   148     3     1           1       4     19     176   177     1,001
Tanami   81     1     2           1           32     117   127     925
Ahafo   155     3     2           (1 )         19     178   153     1,161
Akyem   77     8     1                     7     93   100     930
Nevada Gold Mines   294     3     4     2                 59     362   267     1,358
Corporate and Other (11)           19     62                 7     88   1    
Total Gold $ 1,345   $ 37   $ 43   $ 65     $ 7     $ 12   $ 258   $ 1,767   1,391   $ 1,271
                                       
Gold equivalent ounces – other metals (12)                                      
Peñasquito $ 164   $ 4   $ 2   $ 1     $ (1 )   $ 30   $ 30   $ 230   234   $ 982
Boddington   36     1         (1 )           3     2     41   47     873
Corporate and Other (11)           1     8                 1     10      
Total Gold Equivalent Ounces $ 200   $ 5   $ 3   $ 8     $ (1 )   $ 33   $ 33   $ 281   281   $ 999
                                       
Consolidated $ 1,545 $ 42 $ 46 $ 73   $ 6   $ 45 $ 291 $ 2,048
(1)   Excludes Depreciation and amortization and Reclamation and remediation.  
(2)   Includes by-product credits of $24 and excludes co-product revenues of $284.  
(3)   Includes stockpile and leach pad inventory adjustments of $11 at CC&V, $13 at Yanacocha, $2 at Akyem, and $21 at NGM.  
(4)   Reclamation costs include operating accretion and amortization of asset retirement costs of $17 and $25, respectively, and exclude accretion and reclamation and remediation adjustments at former operating properties that have entered the closure phase and have no substantive future economic value of $28 and $8, respectively.  
(5)   Advanced projects, research and development and exploration excludes development expenditures of $1 at Porcupine, $2 at Peñasquito, $4 at Yanacocha, $4 at Merian, $8 at Cerro Negro, $6 at Tanami, $5 at Ahafo, $3 at Akyem, $5 at NGM and $65 at Corporate and Other, totaling $103 related to developing new operations or major projects at existing operations where these projects will materially benefit the operation.  
(6)   Other expense, net is adjusted for settlement costs of $2, restructuring and severance costs of $2, and impairment charges of $1.  
(7)   Includes sustaining capital expenditures of $276. See Liquidity and Capital Resources within Part I, Item 2, Management’s Discussion and Analysis for sustaining capital expenditures by segment.  
(8)   Excludes development capital expenditures, capitalized interest and the change in accrued capital totaling $253. See Liquidity and Capital Resources within Part I, Item 2, Management’s Discussion and Analysis for discussion of major development projects.  
(9)   Includes finance lease payments for sustaining projects of $15.  
(10)   Per ounce measures may not recalculate due to rounding.  
(11)   Corporate and Other includes the Company’s business activities relating to its corporate and regional offices and all equity method investments. Refer to Note 3 of the Condensed Consolidated Financial Statements for further information.  
(12)   Gold equivalent ounces is calculated as pounds or ounces produced multiplied by the ratio of the other metals price to the gold price, using Gold ($1,200/oz.), Copper ($3.25/lb.), Silver ($23.00/oz.), Lead ($0.95/lb.) and Zinc ($1.15/lb.) pricing for 2022.  

 

Nine Months Ended

September 30, 2023

Costs
Applicable
to
Sales
(1)(2)(3)(4)
  Reclamation
Costs
(5)
  Advanced
Projects,
Research and
Development
and
Exploration
(6)
  General and
Administrative
  Other
Expense,
Net
(7)
  Treatment
and
Refining
Costs
  Sustaining
Capital
and Lease
Related
Costs
(8)(9)
  All-In
Sustaining
Costs
  Ounces
(000)
Sold
  All-In
Sustaining
Costs
Per
oz.
(10)
Gold                                      
CC&V $ 157   $ 8   $ 8   $   $ 1   $   $ 42   $ 216   135   $ 1,603
Musselwhite   163     4     7                 73     247   132     1,869
Porcupine   220     17     10                 45     292   189     1,545
Éléonore   212     7     6         1         81     307   165     1,855
Peñasquito   123     6     1             7     24     161   103     1,569
Merian   269     5     9                 63     346   219     1,580
Cerro Negro   232     4     3         2         33     274   176     1,556
Yanacocha   225     17     6         4         11     263   204     1,290
Boddington   483     14     3             14     97     611   588     1,039
Tanami   244     2     1                 86     333   312     1,066
Ahafo   384     14     1         2         108     509   401     1,269
Akyem   189     29     1     1             29     249   198     1,260
Nevada Gold Mines   888     11     12     7     2     5     230     1,155   847     1,364
Corporate and Other (11)           55     181     4         24     264      
Total Gold $ 3,789   $ 138   $ 123   $ 189   $ 16   $ 26   $ 946   $ 5,227   3,669   $ 1,425
                                       
Gold equivalent ounces – other metals (12)                                      
Peñasquito $ 456   $ 21   $ 3   $ 1   $ 1   $ 66   $ 87   $ 635   385   $ 1,648
Boddington   151     2     1             11     31     196   190     1,033
Corporate and Other (11)           7     25     1         5     38      
Total Gold Equivalent Ounces $ 607   $ 23   $ 11   $ 26   $ 2   $ 77   $ 123   $ 869   575   $ 1,511
                                       
Consolidated $ 4,396   $ 161   $ 134   $ 215   $ 18   $ 103   $ 1,069   $ 6,096        
(1)   Excludes Depreciation and amortization and Reclamation and remediation.  
(2)   Includes by-product credits of $91 and excludes co-product revenues of $772.  
(3)   Includes stockpile, leach pad, and product inventory adjustments of $3 at Porcupine, $5 at Éléonore, $19 at Peñasquito, $2 at Cerro Negro, $4 at Yanacocha, $1 at Akyem, and $4 at NGM.  
(4)   Beginning January 1, 2023, COVID-19 specific costs incurred in the ordinary course of business are recognized in Costs applicable to sales.  
(5)   Reclamation costs include operating accretion and amortization of asset retirement costs of $74 and $87, respectively, and exclude accretion and reclamation and remediation adjustments at former operating properties that have entered the closure phase and have no substantive future economic value of $111 and $113, respectively.  
(6)   Advanced projects, research and development and exploration excludes development expenditures of $2 at CC&V, $5 at Porcupine, $5 at Peñasquito, $8 at Merian, $3 at Cerro Negro, $3 at Yanacocha, $19 at Tanami, $27 at Ahafo, $13 at Akyem, $13 at NGM, and $92 at Corporate and Other, totaling $190 related to developing new operations or major projects at existing operations where these projects will materially benefit the operation.  
(7)   Other expense, net is adjusted for Newcrest transaction-related costs of $37, restructuring and severance of $19, impairment charges of $10, and settlement costs of $2.  
(8)   Excludes capitalized interest related to sustaining capital expenditures. See Liquidity and Capital Resources within Part I, Item 2, Management’s Discussion and Analysis for capital expenditures by segment.  
(9)   Includes finance lease payments and other costs for sustaining projects of $55.  
(10)   Per ounce measures may not recalculate due to rounding.  
(11)   Corporate and Other includes the Company’s business activities relating to its corporate and regional offices and all equity method investments. Refer to Note 3 of the Condensed Consolidated Financial Statements for further information.  
(12)   Gold equivalent ounces is calculated as pounds or ounces produced multiplied by the ratio of the other metals price to the gold price, using Gold ($1,400/oz.), Copper ($3.50/lb.), Silver ($20.00/oz.), Lead ($1.00/lb.) and Zinc ($1.20/lb.) pricing for 2023.

 

 

 

Nine Months Ended

September 30, 2022

Costs
Applicable
to
Sales 
(1)(2)(3)
  Reclamation
Costs 
(4)
  Advanced
Projects,
Research and
Development
and
Exploration
(5)
  General
and
Administrative
  Other
Expense,
Net
(6)
  Treatment
and
Refining
Costs
  Sustaining
Capital
and Lease
Related
Costs
(7)(8)(9)
  All-In
Sustaining
Costs
  Ounces
(000)
Sold
  All-In
Sustaining
Costs Per
oz.
(10)
Gold                                      
CC&V $ 165   $ 11   $ 6   $     $ 4   $   $ 30   $ 216   130   $ 1,661
Musselwhite   143     4     5           1         32     185   114     1,619
Porcupine   209     3     9                   35     256   201     1,271
Éléonore   197     7     1           3         45     253   151     1,675
Peñasquito (11)   323     8     3     1       1     21     52     409   408     1,002
Merian   270     4     9           3         37     323   285     1,131
Cerro Negro   205     5     1           9         40     260   208     1,248
Yanacocha   214     14     3           9         17     257   190     1,362
Boddington   491     12     3           2     12     46     566   616     921
Tanami   230     2     6           6         89     333   358     930
Ahafo   390     7     3                   63     463   396     1,167
Akyem   220     23     2                   24     269   299     900
Nevada Gold Mines   853     7     11     7           1     162     1,041   845     1,232
Corporate and Other (12)           60     172               18     250   1    
Total Gold $ 3,910   $ 107   $ 122   $ 180     $ 38   $ 34   $ 690   $ 5,081   4,202   $ 1,209
                                       
Gold equivalent ounces – other metals (13)                                      
Peñasquito (11) $ 647   $ 14   $ 8   $ 1     $ 3   $ 95   $ 98   $ 866   793   $ 1,092
Boddington   131     2     1     (1 )         8     9     150   171     879
Corporate and Other (12)           9     30               3     42      
Total Gold Equivalent Ounces $ 778   $ 16   $ 18   $ 30     $ 3   $ 103   $ 110   $ 1,058   964   $ 1,098
                                       
Consolidated $ 4,688   $ 123   $ 140   $ 210     $ 41   $ 137   $ 800   $ 6,139        
(1)   Excludes Depreciation and amortization and Reclamation and remediation.  
(2)   Includes by-product credits of $81 and excludes co-product revenues of $1,129.  
(3)   Includes stockpile and leach pad inventory adjustments of $18 at CC&V, $13 at Yanacocha, $3 at Merian, $2 at Akyem, and $49 at NGM.  
(4)   Reclamation costs include operating accretion and amortization of asset retirement costs of $49 and $74, respectively, and exclude accretion and reclamation and remediation adjustments at former operating properties that have entered the closure phase and have no substantive future economic value of $85 and $29, respectively.  
(5)   Advanced projects, research and development and exploration excludes development expenditures of $1 at CC&V, $2 at Porcupine, $5 at Peñasquito, $8 at Yanacocha, $8 at Merian, $14 at Cerro Negro, $15 at Tanami, $15 at Ahafo, $10 at Akyem, $13 at NGM and $107 at Corporate and Other, totaling $198 related to developing new operations or major projects at existing operations where these projects will materially benefit the operation.  
(6)   Other expense, net is adjusted for settlement costs of $20, impairment charges of $3, restructuring and severance costs of $3 and distributions from the Newmont Global Community Support Fund of $1.  
(7)   Includes sustaining capital expenditures of $752. See Liquidity and Capital Resources within Part I, Item 2, Management’s Decision and Analysis for sustaining capital expenditures by segment.  
(8)   Excludes development capital expenditures, capitalized interest and the change in accrued capital totaling $733. See Liquidity and Capital Resources within Part I, Item 2, Management’s Discussion and Analysis for discussion of major development projects.  
(9)   Includes finance lease payments for sustaining projects of $48.  
(10)   Per ounce measures may not recalculate due to rounding.  
(11)   Costs applicable to sales includes $70 related to the Peñasquito Profit-Sharing Agreement regarding 2021 site performance. For further information, refer to Note 3 of the Condensed Consolidated Financial Statements.  
(12)   Corporate and Other includes the Company’s business activities relating to its corporate and regional offices and all equity method investments. Refer to Note 3 of the Condensed Consolidated Financial Statements for further information.  
(13)   Gold equivalent ounces is calculated as pounds or ounces produced multiplied by the ratio of the other metals price to the gold price, using Gold ($1,200/oz.), Copper ($3.25/lb.), Silver ($23.00/oz.), Lead ($0.95/lb.) and Zinc ($1.15/lb.) pricing for 2022.  

 

 

A reconciliation of the 2023 Gold AISC outlook to the 2023 Gold CAS outlook is provided below. The estimates in the table below are considered “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are intended to be covered by the safe harbor created by such sections and other applicable laws.

 

2023 Outlook – Gold (1)(2) Outlook Estimate
(+/- 5%)
(in millions, except ounces and per ounce)
Cost Applicable to Sales (3)(4) $ 5,350
Reclamation Costs (5)   195
Advanced Projects & Exploration (6)   175
General and Administrative (7)   255
Other Expense   15
Treatment and Refining Costs   40
Sustaining Capital (8)   1,300
Sustaining Finance Lease Payments   45
All-in Sustaining Costs $ 7,375
Ounces (000) Sold (9)   5,300
All-in Sustaining Costs per Ounce $ 1,400
(1)   The reconciliation is provided for illustrative purposes in order to better describe management’s estimates of the components of the calculation. Estimates for each component of the forward-looking All-in sustaining costs per ounce are independently calculated and, as a result, the total All-in sustaining costs and the All-in sustaining costs per ounce may not sum to the component ranges. While a reconciliation to the most directly comparable GAAP measure has been provided for the 2023 AISC Gold Outlook on a consolidated basis, a reconciliation has not been provided on an individual site or project basis in reliance on Item 10(e)(1)(i)(B) of Regulation S-K because such reconciliation is not available without unreasonable efforts.  
(2)   All values are presented on a consolidated basis for Newmont.  
(3)   Excludes Depreciation and amortization and Reclamation and remediation.  
(4)   Includes stockpile and leach pad inventory adjustments.  
(5)   Reclamation costs include operating accretion and amortization of asset retirement costs.  
(6)   Advanced Project and Exploration excludes non-sustaining advanced projects and exploration.  
(7)   Includes stock based compensation.  
(8)   Excludes development capital expenditures, capitalized interest and change in accrued capital.  
(9)   Consolidated production for Merian is presented on a total production basis for the mine site and excludes production from Pueblo Viejo.  

 

Net debt to Adjusted EBITDA ratio

 

Management uses net debt to Adjusted EBITDA as non-GAAP measures to evaluate the Company’s operating performance, including our ability to generate earnings sufficient to service our debt. Net debt to Adjusted EBITDA represents the ratio of the Company’s debt, net of cash and cash equivalents and time deposits, to Adjusted EBITDA. Net debt to Adjusted EBITDA does 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 does not necessarily indicate whether cash flows will be sufficient to fund cash needs. Although Net Debt to 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 net debt to Adjusted EBITDA measure is not necessarily comparable to such other similarly titled captions of other companies. The Company believes that net debt to 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 net debt to Adjusted EBITDA is 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 EBITDA as follows:

 

  Three Months Ended
  September 30, 2023   June 30, 2023   March 31, 2023   December 31, 2022
               
Net income (loss) attributable to Newmont stockholders $ 158     155     $ 351     $ (1,477 )
Net income (loss) attributable to noncontrolling interests   5           12       19  
Net loss (income) from discontinued operations   (1 )   (2 )     (12 )     (11 )
Equity loss (income) of affiliates   (3 )   (16 )     (25 )     (26 )
Income and mining tax expense (benefit)   73     163       213       112  
Depreciation and amortization   480     486       461       571  
Interest expense, net of capitalized interest   48     49       65       53  
EBITDA   760     835       1,065       (759 )
EBITDA Adjustments:              
Reclamation and remediation charges   104     (2 )           700  
Change in fair value of investments   41     42       (41 )     (45 )
Newcrest transaction-related costs   16     21              
Restructuring and severance   7     10       2       1  
Impairment charges   2     4       4       1,317  
(Gain) loss on asset and investment sales, net   2           (36 )     (61 )
Settlement costs   2                 2  
Pension settlements                   7  
COVID-19 specific costs                   2  
Other   (1 )         (4 )     (3 )
Adjusted EBITDA   933     910       990       1,161  
12 month trailing Adjusted EBITDA $ 3,994              
               
Total Debt $ 5,575              
Lease and other financing obligations   512              
Less: Cash and cash equivalents   (3,190 )            
Total net debt $ 2,897              
               
Net debt to adjusted EBITDA   0.7              

 

Net average realized price per ounce/pound

 

Average realized price per ounce/ pound are non-GAAP financial measures. The measures are calculated by dividing the net consolidated gold, copper, silver, lead and zinc sales by the consolidated gold ounces, copper pounds, silver ounces, lead pounds and zinc pounds sold, respectively. These measures are calculated on a consistent basis for the periods presented on a consolidated basis. Average realized price per ounce/ pound statistics are intended to provide additional information only, 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 measure:

 

  Three Months Ended
September 30,
  Nine Months Ended
September 30,
  2023   2022   2023   2022
Consolidated gold sales, net $ 2,400     $ 2,350   $ 7,083   $ 7,586
Consolidated copper sales, net   90       48     282     223
Consolidated silver sales, net   5       105     246     401
Consolidated lead sales, net         26     64     98
Consolidated zinc sales, net   (2 )     105     180     407
Total sales $ 2,493     $ 2,634   $ 7,855   $ 8,715
  Three Months Ended September 30, 2023
  Gold   Copper   Silver   Lead   Zinc
  (ounces)   (pounds)   (ounces)   (pounds)   (pounds)
Consolidated sales: (1)                  
Gross before provisional pricing and streaming impact $ 2,411     $ 93     $ 2   $   $ (3 )
Provisional pricing mark-to-market   (5 )           3         2  
Silver streaming amortization                        
Gross after provisional pricing and streaming impact   2,406       93       5         (1 )
Treatment and refining charges   (6 )     (3 )             (1 )
Net $ 2,400     $ 90     $ 5   $   $ (2 )
Consolidated ounces (thousands)/pounds (millions) sold   1,250       25       55         (2 )
Average realized price (per ounce/pound): (1)(2)                  
Gross before provisional pricing and streaming impact $ 1,929     $ 3.83     N.M.   N.M.   N.M.
Provisional pricing mark-to-market   (4 )         N.M.   N.M.   N.M.
Silver streaming amortization             N.M.   N.M.   N.M.
Gross after provisional pricing and streaming impact   1,925       3.83     N.M.   N.M.   N.M.
Treatment and refining charges   (5 )     (0.15 )   N.M.   N.M.   N.M.
Net $ 1,920     $ 3.68     N.M.   N.M.   N.M.

 

(1)   Due to the Peñasquito labor strike, Peñasquito had no production during the third quarter of 2023. Sales activity recognized in the third quarter of 2023 is related to adjustments on provisionally priced concentrate sales subject to final settlement. As such, the average realized price per ounce/pound metrics are not meaningful (“N.M.”).  
(2)   Per ounce/pound measures may not recalculate due to rounding.​  
  Three Months Ended September 30, 2022
  Gold   Copper   Silver   Lead   Zinc
  (ounces)   (pounds)   (ounces)   (pounds)   (pounds)
Consolidated sales:                  
Gross before provisional pricing and streaming impact $ 2,386     $ 60     $ 106     $ 27     $ 122  
Provisional pricing mark-to-market   (24 )     (9 )     (6 )            
Silver streaming amortization               17              
Gross after provisional pricing and streaming impact   2,362       51       117       27       122  
Treatment and refining charges   (12 )     (3 )     (12 )     (1 )     (17 )
Net $ 2,350     $ 48     $ 105     $ 26     $ 105  
Consolidated ounces (thousands)/pounds (millions) sold   1,391       17       6,805       30       85  
Average realized price (per ounce/pound): (1)                  
Gross before provisional pricing and streaming impact $ 1,716     $ 3.45     $ 15.55     $ 0.89     $ 1.44  
Provisional pricing mark-to-market   (17 )     (0.53 )     (0.85 )            
Silver streaming amortization               2.45              
Gross after provisional pricing and streaming impact   1,699       2.92       17.15       0.89       1.44  
Treatment and refining charges   (8 )     (0.12 )     (1.73 )     (0.03 )     (0.19 )
Net $ 1,691     $ 2.80     $ 15.42     $ 0.86     $ 1.25  

 

(1)   Per ounce/pound measures may not recalculate due to rounding.​  
  Nine Months Ended September 30, 2023
  Gold   Copper   Silver   Lead   Zinc
  (ounces)   (pounds)   (ounces)   (pounds)   (pounds)
Consolidated sales:                  
Gross before provisional pricing and streaming impact $ 7,098     $ 293     $ 227     $ 69     $ 240  
Provisional pricing mark-to-market   11             7       (2 )     (16 )
Silver streaming amortization               31              
Gross after provisional pricing and streaming impact   7,109       293       265       67       224  
Treatment and refining charges   (26 )     (11 )     (19 )     (3 )     (44 )
Net $ 7,083     $ 282     $ 246     $ 64     $ 180  
Consolidated ounces (thousands)/pounds (millions) sold   3,669       76       12,178       72       187  
Average realized price (per ounce/pound): (1)                  
Gross before provisional pricing and streaming impact $ 1,934     $ 3.86     $ 18.65     $ 0.96     $ 1.28  
Provisional pricing mark-to-market   3             0.54       (0.03 )     (0.08 )
Silver streaming amortization               2.56              
Gross after provisional pricing and streaming impact   1,937       3.86       21.75       0.93       1.20  
Treatment and refining charges   (7 )     (0.15 )     (1.57 )     (0.03 )     (0.23 )
Net $ 1,930     $ 3.71     $ 20.18     $ 0.90     $ 0.97  

 

(1)   Per ounce/pound measures may not recalculate due to rounding.​  
  Nine Months Ended September 30, 2022
  Gold   Copper   Silver   Lead   Zinc
  (ounces)   (pounds)   (ounces)   (pounds)   (pounds)
Consolidated sales:                  
Gross before provisional pricing and streaming impact $ 7,642     $ 254     $ 402     $ 106     $ 478  
Provisional pricing mark-to-market   (22 )     (23 )     (18 )     (5 )     (18 )
Silver streaming amortization               56              
Gross after provisional pricing and streaming impact   7,620       231       440       101       460  
Treatment and refining charges   (34 )     (8 )     (39 )     (3 )     (53 )
Net $ 7,586     $ 223     $ 401     $ 98     $ 407  
Consolidated ounces (thousands)/pounds (millions) sold   4,202       63       22,523       107       290  
Average realized price (per ounce/pound): (1)                  
Gross before provisional pricing and streaming impact $ 1,819     $ 4.03     $ 17.88     $ 1.00     $ 1.65  
Provisional pricing mark-to-market   (5 )     (0.37 )     (0.78 )     (0.05 )     (0.06 )
Silver streaming amortization               2.45              
Gross after provisional pricing and streaming impact   1,814       3.66       19.55       0.95       1.59  
Treatment and refining charges   (8 )     (0.12 )     (1.74 )     (0.03 )     (0.18 )
Net $ 1,806     $ 3.54     $ 17.81     $ 0.92     $ 1.41  

 

(1)   Per ounce/pound measures may not recalculate due to rounding.​

 

 

Gold by-product metrics

 

Copper, silver, lead and zinc are by-products often obtained during the process of extracting and processing the primary ore-body. In our GAAP Condensed Consolidated Financial Statements, the value of these by-products is recorded as a credit to our CAS and the value of the primary ore is recorded as Sales. In certain instances, copper, silver, lead and zinc are co-products, or a significant resource in the primary ore-body, and the revenue is recorded as Sales in our GAAP Condensed Consolidated Financial Statements.

 

Gold by-product metrics are non-GAAP financial measures that serve as a basis for comparing the Company’s performance with certain competitors. As Newmont’s operations are primarily focused on gold production, “Gold by-product metrics” were developed to allow investors to view Sales, CAS per ounce and AISC per ounce calculations that classify all copper, silver, lead and zinc production as a by-product, even when copper, silver, lead or zinc is a significant resource in the primary ore-body. These metrics are calculated by subtracting copper, silver, lead and zinc sales recognized from Sales and including these amounts as offsets to CAS.

 

Gold by-product metrics are calculated on a consistent basis for the periods presented on a consolidated basis. These metrics are intended to provide supplemental information only, 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. 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.

 

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

 

  Three Months Ended
September 30,
  Nine Months Ended
September 30,
  2023   2022   2023   2022
Consolidated gold sales, net $ 2,400     $ 2,350     $ 7,083     $ 7,586  
Consolidated other metal sales, net   93       284       772       1,129  
Sales $ 2,493     $ 2,634     $ 7,855     $ 8,715  
               
Costs applicable to sales $ 1,371     $ 1,545     $ 4,396     $ 4,688  
Less: Consolidated other metal sales, net   (93 )     (284 )     (772 )     (1,129 )
By-product costs applicable to sales $ 1,278     $ 1,261     $ 3,624     $ 3,559  
Gold sold (thousand ounces)   1,250       1,391       3,669       4,202  
Total Gold CAS per ounce (by-product) (1) $ 1,022     $ 907     $ 988     $ 847  
               
Total AISC $ 1,927     $ 2,048     $ 6,096     $ 6,139  
Less: Consolidated other metal sales, net   (93 )     (284 )     (772 )     (1,129 )
By-product AISC $ 1,834     $ 1,764     $ 5,324     $ 5,010  
Gold sold (thousand ounces)   1,250       1,391       3,669       4,202  
Total Gold AISC per ounce (by-product) (1) $ 1,467     $ 1,268     $ 1,451     $ 1,192  
(1) Per ounce/pound measures may not recalculate due to rounding.​  

 

About Newmont

 

Newmont is the world’s leading gold company and a producer of copper, silver, lead and zinc. The Company’s world-class portfolio of assets, prospects and talent is anchored in favorable mining jurisdictions in North America, South America, Australia and Africa. Newmont is the only gold producer listed in the S&P 500 Index and is widely recognized for its principled environmental, social and governance practices. The Company is an industry leader in value creation, supported by robust safety standards, superior execution and technical expertise. Newmont was founded in 1921 and has been publicly traded since 1925.

 

Posted October 26, 2023

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