Newmont Mining Corporation (NYSE: NEM) today reported second
quarter 2014 financial and operating results, including:
- Achieved reported net income
attributable to shareholders from continuing operations of $182
million, or $0.37 per basic share, and adjusted net income1 of $101
million, or $0.20 per basic share;
- Reduced costs applicable to sales (CAS)
by 17 percent to $744 per ounce of gold and by 67 percent to $2.53
per pound of copper over second quarter 2013 including current and
prior period inventory adjustments;
- Generated cost savings of $359 million
in gold all-in sustaining costs2 (AISC);
- Generated cash from continuing
operations of $378 million and $124 million in free cash flow from
continuing operations;
- Delivered 1.2 million ounces and 20,000
tonnes of attributable gold and copper production,
respectively;
- Improved gold CAS outlook3 by three
percent to $720 to $760 per ounce in 2014;
- Increased attributable gold production
outlook by two percent to 4.7 to 5.0 million ounces in 2014;
- Announced a decision to develop the
Merian project in Suriname;
- Announced the sale of the Jundee
operation in Australia for total proceeds of approximately $94
million, bringing the total value of divestments to nearly $800
million in the last year; and
- Declared a third quarter dividend of
$0.025 per share in accordance with the Company’s gold price-linked
dividend policy4.
“We continued to improve costs and efficiencies during the
second quarter with $359 million in all-in sustaining cost
reductions. We also continued to optimize our project pipeline and
asset portfolio while reaching a decision to develop the Merian
mine in Suriname, which establishes a prospective new district for
Newmont,” said Gary Goldberg, President and Chief Executive
Officer. “We delivered $124 million in free cash flow in the second
quarter and have generated nearly $800 million through fairly
valued divestments over the last 12 months. Based on this positive
trajectory, we have updated our 2014 outlook to reflect lower costs
and higher production. Finally, we continue to work with the
Indonesian government to find a fair solution that allows us to
resume normal operations as quickly as possible.”
Merian Update
Newmont has announced a decision to develop the Merian gold mine
in Suriname. The new mine is expected to begin production in late
2016, pending receipt of the Right of Exploitation from the
government of Suriname. Merian offers Newmont a profitable new
operation in Suriname, and a foothold in the prospective Guiana
Shield region.
During Merian’s first five years of operation, the Company
forecasts average annual production of between 400,000 and 500,000
attributable ounces of gold at all-in sustaining costs of between
$750 and $850 per ounce. Total capital to bring Merian into
commercial production is estimated at between $900 million and $1
billion on a 100 percent basis. The government of Suriname has an
option to earn up to a 25 percent fully-funded equity ownership
stake, including all project capital and operating expenses and an
initial earn-in contribution.
Indonesia Update
On June 5, 2014, PT Newmont Nusa Tenggara (PTNNT), the entity
operating the Batu Hijau mine, invoked the force majeure clause of
its Contract of Work (CoW), the investment agreement entered into
by PTNNT and the Indonesian government in 1986 and valid through
2030, due to the inability to export preventing continued
production. On July 1, 2014, PTNNT and Nusa Tenggara Partnership
B.V. (NTPBV), a Dutch entity and PTNNT’s majority shareholder,
announced filing for international arbitration against the
Government of Indonesia to seek relief from export restrictions
that have halted production at Batu Hijau. As a result, we have
modified Indonesian guidance for 2014 and updated our outlook for
2015 and 2016. In the meantime, the Company remains committed to
seeking opportunities to resolve outstanding issues with the
Government of Indonesia to resume normal operations.
2014 Second Quarter Financial Results
The Company reported attributable net income from continuing
operations of $182 million, or $0.37 per basic share, compared with
a loss of $2.1 billion, or $4.29 per basic share in the second
quarter of 2013. Adjusted net income was $101 million, or $0.20 per
basic share, compared with a loss of $90 million, or $0.18 per
basic share, in the prior year quarter. Revenue totaled $1.8
billion compared to $2.0 billion in the second quarter of 2013.
Gold and copper AISC was $1,063 per ounce and $3.69 per pound,
respectively, compared with $1,283 per ounce and $8.72 per pound,
respectively, in the prior year quarter. Gold and copper CAS was
$744 per ounce and $2.53 per pound, respectively, compared with
$895 per ounce and $7.59 per pound, respectively, in the second
quarter of 2013. Average realized gold and copper price was $1,283
per ounce and $3.01 per pound, respectively, compared with $1,386
per ounce and $2.69 per pound, respectively, in the prior year
quarter.
2014 Second Quarter Operating Results
Summary Attributable Production Table (Attributable production,
Koz and Kt) Region Q2 2014
Q2 2013 Change North America
401 437 -8% South America
106 167 -37%
Australia/New Zealand 468 418
12% Indonesia 7 6
17% Africa 238 139 71%
Total Gold 1,220
1,167 5% North America
5.3 4.1 29% Australia/New Zealand
7.4 7.4 0% Indonesia
7.5 7.9 -5%
Total
Copper 20.2 19.4
4%
Summary CAS Table (Consolidated $/oz and $/lb) Region
Q2 2014 Q2 2013
Change North America $780
$722 8% South America $984
$673 46% Australia/New Zealand
$748 $1,206 -38% Indonesia
$1,071 $5,299 -80% Africa
$468 $596 -21%
Total Gold
CAS $744 $895
-17% North America $2.33
$1.65 41% Australia/New Zealand $2.42
$3.25 -26% Indonesia
$2.82 $11.23 -75%
Total Copper
CAS $2.53 $7.59
-67% Summary All-in Sustaining Costs
Table (Consolidated $/oz and $/lb) Region
Q2 2014 Q2 2013 Change
North America $1,032 $1,095 -6%
South America $1,398 $949 47%
Australia/New Zealand $926 $1,425
-35% Indonesia $1,556 $5,917
-74% Africa $688 $1,035
-34%
Total Gold AISC $1,063
$1,283 -17% North America
$3.15 $2.38 32% Australia/New Zealand
$3.31 $3.84 -14% Indonesia
$4.32 $12.59 -66%
Total Copper
AISC $3.69 $8.72
-58%
Attributable gold production increased by approximately five
percent from the prior year quarter due to higher production from
Africa and Australia/New Zealand, partially offset by lower
production from South America. Attributable copper production
increased by four percent due to new production from Phoenix Copper
Leach in Nevada, offsetting lower production from Batu Hijau
related to export issues. Gold CAS per ounce decreased by 17
percent due to continued reductions in direct operating costs as
well as lower stockpile and leach pad inventory adjustments,
partially offset by higher unit mining costs in South America.
Copper CAS per pound decreased 67 percent due to lower stockpile
inventory adjustments compared to the prior year quarter.
Second Quarter Operating Results by Region
North America
Attributable gold production at Carlin increased three percent
from the prior year quarter due to higher throughput and grade at
Mill 6 as well as higher recoveries at Emigrant. Utilization at
Mill 6 has improved by 10 percent year to date through optimization
of management controls and scheduled downtime. CAS per ounce
increased 24 percent from the prior year quarter due to planned
stripping at Gold Quarry and the Carlin North Area, partially
offset by lower direct operating costs achieved by optimizing
haulage costs and reducing leach pad consumables. Development of
the Turf Vent Shaft continues on schedule and on budget.
Attributable gold production at Phoenix decreased 19 percent
from the prior year quarter due to lower grades and throughput.
Copper production increased 29 percent from the prior year quarter
due to Phoenix Copper Leach which commenced production in the
fourth quarter of 2013. Gold CAS per ounce increased four percent
from the prior year quarter, primarily due to lower ounces sold.
Copper CAS per pound increased 41 percent from the prior year
quarter, due to lower grades and higher allocation of costs to
copper production based on revenue.
Attributable gold production at Twin Creeks decreased 19 percent
from the prior year quarter primarily due to lower production
following the sale of Midas, as well as lower grades and volumes at
the Twin Creeks Autoclave. CAS per ounce decreased 19 percent from
the prior year quarter, primarily due to a lower strip ratio and
the sale of Midas.
Attributable gold production at La Herradura decreased 15
percent from the prior year quarter, primarily due to the temporary
suspension of an explosives permit. CAS per ounce decreased 28
percent from the prior year quarter, primarily due to the ramp-up
of production upon receipt of a new explosives permit.
Gold AISC in North America was $1,032 per ounce, a decrease of
six percent over the prior year quarter due to lower advanced
project and exploration spending and lower sustaining capital
achieved through sustainable cost and efficiency improvements.
Copper AISC was $3.15 per pound, an increase of 32 percent over the
prior year quarter due to the increase in CAS as previously
mentioned.
South America
Attributable gold production at Yanacocha decreased 35 percent
from the prior year quarter, due primarily to planned processing of
lower grade stockpiled ore and declining grades at Tapado Oeste and
Chaquicocha. CAS per ounce increased 46 percent from the prior year
quarter, primarily due to higher direct mining costs on a unit
basis related to the decline in production compared to the prior
year period.
Gold AISC in South America was $1,398 per ounce, an increase of
47 percent over the prior year quarter primarily due to higher
direct mining costs on a unit basis related to lower grade
production compared to the prior year period.
Australia/New Zealand
Attributable gold production at Boddington decreased two percent
from the prior year quarter, primarily due to lower ore grades.
This was partially offset by higher mill throughput. Mill
utilization rates have increased 13 percent year to date through
improved conveyor reliability and consolidation of planned
maintenance shutdowns.
Copper production at Boddington was essentially in line with the
prior year quarter as higher throughput was mostly offset by lower
ore grades. Gold CAS per ounce decreased 31 percent and copper CAS
per pound decreased 26 percent from the prior year quarter,
primarily due to lower stockpile inventory adjustments, lower mill
maintenance costs and lower mining costs on a unit basis as a
result of higher tons mined. These were achieved through an
improved strip ratio with improved shovel availability and a change
in the mine sequence contributing to the increase in tons
mined.
Attributable gold production at Tanami increased 53 percent from
the prior year quarter, primarily due to higher grades from the
Auron ore body coupled with improved mining rates. Mining rates
were enhanced through improvements in truck utilization and stope
availability leading to higher mill throughput. CAS per ounce
decreased 36 percent from the prior year quarter, primarily due to
higher production coupled with lower underground mining costs on a
unit basis.
Attributable gold production at Jundee increased one percent
from the prior year quarter, primarily due to higher ore grade and
throughput, and was partially offset by a build-up of in-circuit
inventory. CAS per ounce decreased 20 percent from the prior year
quarter, primarily due to lower underground mining costs and higher
production.
Attributable gold production at Waihi increased 64 percent from
the prior year quarter, primarily due to increased mining and
throughput. CAS per ounce decreased 53 percent from the prior year
quarter, primarily due to higher production and lower operating
costs related to the stripping campaign in the prior year
period.
Attributable gold production at KCGM increased five percent from
the prior year quarter, primarily due to a combination of higher
ore grades and recovery, improved throughput and higher concentrate
production, partially offset by a build-up of gold in-circuit
inventory. CAS per ounce decreased 46 percent from the prior year
quarter, through lower direct operating costs, higher production,
and the impact of the inventory adjustment in the prior year
quarter.
Gold AISC in Australia/New Zealand was $926 per ounce, a
decrease of 35 percent, and copper AISC was $3.31 per pound, a
decrease of 14 percent over the prior year quarter due to lower
operating costs and the impact of the inventory adjustment in the
prior year quarter.
Indonesia
Attributable gold production at Batu Hijau increased 17 percent
primarily due to higher grade and higher metal recovery, and was
partially offset by lower throughput as a result of the export
issues. Attributable copper production decreased five percent due
to lower throughput related to the ramp down and was partially
offset by higher ore grade milled and higher recovery. Gold CAS per
ounce and copper CAS per pound decreased 80 percent and 75 percent,
respectively, from the prior year quarter, primarily due to lower
inventory adjustments, partially offset by the abnormal production
costs related to the suspension of operations. CAS includes $16
million of abnormal costs related to the suspended operation, which
equates to $267 per ounce and $0.70 per pound this quarter.
Gold AISC in Indonesia was $1,556 per ounce, a decrease of 74
percent, and copper AISC was $4.32 per pound, a decrease of 66
percent over the prior year quarter due to lower inventory
adjustments than the prior year quarter.
Africa
Attributable gold production at Ahafo decreased 10 percent from
the prior year quarter due to lower grades and throughput. CAS per
ounce decreased 10 percent from the prior year quarter, primarily
due to lower costs, a decrease in mining rates to synchronize with
mill capacity, and improved costs and tire life. Akyem contributed
113,000 ounces of gold production at CAS of $396 per ounce.
Gold AISC in Africa was $688 per ounce this quarter, a decrease
of 34 percent over the prior year quarter due to lower advanced
projects and exploration spending and higher volume.
Outlook Update
For 2014, the Company now expects total attributable gold
production of 4.7 to 5.0 million ounces up from 4.6 to 4.9 million
ounces, an increase of two percent. CAS is now expected to be $720
to $760 per ounce reduced from $740 to $790 per ounce, a reduction
of three percent. The Company also expects total copper production
of 90 to 100 thousand tonnes at CAS of $2.80 to $3.10 per pound and
AISC of $3.80 to $4.10 per pound.
Outlook for 2015 and 2016 has been revised to include the recent
sale of Jundee, and initial production from Merian in late 2016.
The timing and outcome of a resolution in Indonesia is difficult to
predict; however, for illustrative purposes guidance reflects the
receipt of export permits for Batu Hijau, by January 1, 2015. The
Batu Hijau mine is in care and maintenance pending receipt of
export permits, with PTNNT expected to incur approximately $20 to
$25 million per month in holding costs. For the second half of
2014, PTNNT plans to ship approximately 58,400 tonnes of
concentrate containing approximately 14,400 tonnes of copper and
approximately 11,000 ounces of gold from inventory to PT Smelting.
PTNNT’s ability to export will impact these expectations and
assumptions and Newmont’s ability to achieve outlook.
Balance Sheet and Financial Flexibility
In the second quarter, cash from continuing operations was $378
million and free cash flow generated from continuing operations was
$124 million. At quarter end, the Company held $1.7 billion of
consolidated cash on its balance sheet. During the quarter, the
Company also announced the close of a $575 million five-year,
amortizing term loan that was used to repay the $575 million
convertible debt issue that matured July 15, 2014.
Capital Update
Total capital spent in the second quarter was $254 million.
Capital expenditures in North America during the second quarter of
2014 were primarily related to the development of the Turf Vent
Shaft in Nevada. Capital expenditures in South America, Australia
and New Zealand, Indonesia, and Africa were primarily for
sustaining capital, which has been reduced across the portfolio
through improved asset management.
Total consolidated capital spending is now expected to be $1.4
to $1.485 billion, including $200 to $220 million of project
capital for Merian partially offset by lower sustaining capital
spending.
__________________
1 Non-GAAP measure. See end of this release for reconciliation
to net income.2 Non-GAAP measure. See end of this release for
reconciliation to Costs applicable to sales.3 Outlook constitutes
forward-looking statements, which are subject to risk and
uncertainties. See Cautionary Note at end of this release.4 Such
policy is non-binding; declaration of future dividends remains
subject to approval and discretion of the Board of Directors.
Operating Results Table
Second Quarter Consolidated and Attributable Production and
Consolidated CAS and AISC Results
Region
Q2
2014ConsolidatedProduction
Q2
2014AttributableProduction
Q2
2014ConsolidatedCAS
Q2
2014ConsolidatedAISCa
(Kozs, Kt) (Kozs, Kt)
($/oz, $/lb) ($/oz, $/lb)
Carlin 209 209 $1,003 Phoenixb 52 52 $601 Twin Creeksc 94 94 $507
La Herradurad 46 46 $568
North America 401
401 $780
$1,032 Yanacochae 190 98 $984 La Zanjaf
8
South
America 190 106
$984 $1,398 Boddington
168 168 $897 Tanami 95 95 $680 Jundee 74 74 $569 Waihi 41 41 $468
KCGMd 77 77 $868 Duketonf 13
Australia/New
Zealand 455 468
$748 $926 Batu Hijau,
Indonesiae 15
7 $1,071 $1,556
Ahafo 125 125 $534 Akyem 113 113
$396
Africa
238 238 $468
$688 Total Gold
1,299
1,220
$744 $1,063 Phoenix 5 5
$2.33 $3.15 Boddington 7 7 $2.42 $3.31 Batu Hijaue 16
8 $2.82 $4.32
Total
Copper 28 20
$2.53 $3.69
aNon-GAAP measure. See end of this release
for reconciliation to Costs applicable to sales.bIncludes Lone Tree
operations.
cIncludes GTRJV operations.
dBoth consolidated and attributable
production are shown on a pro-rata basis with a 44% ownership
interest for La Herradura and a 50% ownership for
KCGM.eConsolidated production for Yanacocha and Batu Hijau are
presented on a total production basis for the mine site; whereas
attributable production represents a 51.35% ownership interest for
Yanacocha, and a 48.5% interest for Batu Hijau.
fLa Zanja and Duketon are not included in the consolidated figures
above; attributable production figures are presented based upon a
46.94% ownership interest at La Zanja and a 19.45% ownership
interest in Duketon.
Outlook Tables
2014 Consolidated and Attributable Production, CAS, AISC, and
Capital Outlooka
Region
2014ConsolidatedProduction
2014AttributableProduction
2014ConsolidatedCAS
2014
All-inSustainingCostsb
2014ConsolidatedCapital
(Kozs, Kt) (Kozs, kt)
($/oz, $/lb) ($/oz, $/t)
Expenditures($M)
Carlin 830 - 910 830 – 910 $850 - $930 $270 - $295 Phoenixc 195 -
215 195 – 215 $655 - $715 $30 - $40 Twin Creeksd 330 - 360 330 –
360 $550 - $600 $110 - $130 La Herradurae 185 - 200 185 – 200 $800
- $875 $90 - $100 Other North America
$30 - $40
North America
1,550 - 1,650 1,550 - 1,650
$750 - $810 $1,000 - $1,100
$500 - $550 Yanacochaf 895 - 985 460 – 500
$660 - $720 $135 - $150 La Zanjag 50 – 60 Other South America
$225 - $270
South America 895 - 985
510 – 560 $660 - $720
$1,090 - $1,180
$360 - $400
Boddington 665 - 725 665 – 725 $880 - $960 $90 - $100 Tanami 320 -
350 320 – 350 $700 - $765 $100 - $110 Jundee 138 - 140 138 – 140
$610 - $620 $15 Waihi 120 - 130 120 – 130 $560 - $610 $25 - $30
KCGMe 300 - 330 300 – 330 $895 - $980 $30 - $40 Duketong 40 – 50
Other Australia/NZ
$5 - $15
Australia/New Zealand 1,575 - 1,675
1,625 - 1,725 $805 - $880
$990 - $1,080 $275 - $300
Batu Hijau, Indonesiah 30 - 35
15 – 20 $1,435 - $1,570
$2,060 - $2,250 $50 - $55
Ahafo 415 - 440 415 – 440 $580 - $650 $100 - $115 Akyem
440 - 480 440 – 480 $400 - $445
$15 - $25
Africa
855 - 920 855 – 920
$495 - $540 $660 - $725
$115 - $140
Corporate/Other
$20 - $25
Total Gold 5,100 - 5,400
4,725 - 5,000 $720 - $760
$1,075 - $1,175 $1,400 - $1,485 Phoenix
15 - 25 15 – 25 $2.10 - $2.30 Boddington 25 - 35 25 – 35 $2.50 -
$2.80 Batu Hijauh 35 - 40 15 – 20
$3.50 - $3.80
Total Copper 80 - 95
90 – 100 $2.80 - $3.10
$3.80 - $4.10 aThe outlook
ranges presented herein represent forward looking statements, which
are subject to certain risks and uncertainties. See cautionary
statement at the end of this release. Additionally, individual site
ranges in the table above may not sum to total regional or Company
levels to provide for portfolio flexibility.
bNon-GAAP measure. See end of this release
for reconciliation to Costs applicable to sales.
cIncludes Lone Tree operations.dIncludes
GTRJV operations.
eBoth consolidated and attributable
production are shown on a pro-rata basis with a 44% ownership
interest for La Herradura and a 50% ownership for
KCGM.fConsolidated production for Yanacocha is presented on a total
production basis for the mine site; whereas attributable production
represents a 51.35% ownership interest.
gLa Zanja and Duketon are not included in
the consolidated figures above; attributable production figures are
presented based upon a 46.94% ownership interest at La Zanja and a
19.45% ownership interest in Duketon.hConsolidated production for
Batu Hijau is presented on a total production basis for the mine
site; whereas attributable production represents an expected
44.5625% ownership interest in 2014 outlook (which assumes
completion of the remaining share divestiture). PTNNT does not
currently have approvals necessary for export. When and whether
PTNNT is able to resume export in 2014 will impact outlook.
Consolidated and Attributable Production (Moz, kt)
2014
Outlook
2015
Outlook
2016
Outlook
Gold (Consolidated Moz) 5,100 - 5,400
5,010 - 5,490 5,700 - 6,100
Gold
(Attributable Moz) 4,725 - 5,000 4,600
- 4,900 5,100 - 5,400
Copper (Consolidated kt)
80 - 95 220 - 240 260 -
270
Copper (Attributable kt) 90 - 100
125 - 135 140 - 150
Consolidated CAS ($/oz, $/lb)
Region
2014
Outlook
2015
Outlook
2016
Outlook
North America $750 - $810 $740 -
$810 $680 - $740
South America
$660 - $720 $560 - $615 $770 - $840
Australia/New Zealand $805 - $880
$865 - $950 $850 - $925
Batu Hijau,
Indonesia $1,435 - $1,570 $490 -
$540 $440 - $480
Africa $495 -
$540 $695 - $760 $730 - $800
Total
Gold $720 - $760 $690 -
$740 $720 - $760 Total Copper
$2.80 - $3.10 $1.50 -
$1.65 $1.25 - $1.35
Consolidated AISC ($/oz, $/lb)
Region
2014
Outlook
2015
Outlook
2016
Outlook
North America $1,000 - $1,100
$955 - $1,045 $835 - $925
South America
$1,090 - $1,180 $900 - $990
$1,180 - $1,290
Australia/New Zealand $990 -
$1,080 $1,040 - $1,140 $985 - $1,075
Batu Hijau, Indonesia $2,060 - $2,250
$710 - $770 $600 - $655
Africa
$660 - $725 $875 - $955 $885 -
$965
Total Gold $1,075 - $1,175
$1,000 - $1,100 $985 - $1,085
Total Copper $3.80 - $4.10
$2.00 - $2.20 $1.60 - $1.80
Consolidated Capital Expenditures ($M)
Region
2014
Outlook
2015
Outlook
2016
Outlook
North America $500 - $550 $430 -
$475 $270 - $295
South America
$360 - $400
$600 - $655 $420 - $455
Australia/New Zealand $275 - $300
$220 - $245 $190 - $210
Batu Hijau,
Indonesia $50 - $55 $150 - $165
$155 - $170
Africa $115 - $140
$80 - $90 $80 - $90
Total
$1,400 - $1,485
$1,550 - $1,650
$1,250 - $1,300
2014 Expense Outlook Description
2014ConsolidatedExpenses
($M)
General & Administrative $175 -
$200 Other Expense $150 - $175 Interest Expense $325 - $350
DD&A $1,050 - $1,125 Exploration and Projects $400 - $450
Sustaining Capital $1,000 - $1,100 Tax Rate 37% - 40%
NEWMONT MINING CORPORATION CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited, in
millions except per share) Three Months Ended
Six Months Ended June 30, June 30, 2014
2013 2014 2013 Sales $ 1,765 $ 2,018 $
3,529 $ 4,206 Costs and expenses Costs applicable to sales
(1) 1,060 1,682 2,143 2,739 Depreciation and amortization 306 415
604 682 Reclamation and remediation 21 18 41 36 Exploration 41 76
75 135 Advanced projects, research and development 42 46 84 98
General and administrative 48 54 93 110 Write-downs 13 2,261 13
2,262 Other expense, net 51 77
103 176 1,582 4,629
3,156 6,238 Other income
(expense) Other income, net 3 50 49 76 Interest expense, net
(94 ) (70 ) (187 ) (135 ) (91 )
(20 ) (138 ) (59 ) Income (loss) before income and
mining tax and other items 92 (2,631 ) 235 (2,091 ) Income and
mining tax benefit (expense) 53 287 (25 ) 107 Equity income (loss)
of affiliates 2 (3 ) 2 (7
) Income (loss) from continuing operations 147 (2,347 ) 212 (1,991
) Income (loss) from discontinued operations (2 ) 74
(19 ) 74 Net income (loss) 145 (2,273 )
193 (1,917 ) Net loss (income) attributable to noncontrolling
interests 35 214 87
172 Net income (loss) attributable to Newmont
stockholders $ 180 $ (2,059 ) $ 280 $ (1,745 )
Net income (loss) attributable to Newmont stockholders: Continuing
operations $ 182 $ (2,133 ) $ 299 $ (1,819 ) Discontinued
operations (2 ) 74 (19 ) 74
$ 180 $ (2,059 ) $ 280 $ (1,745 ) Income
(loss) per common share Basic: Continuing operations $ 0.37 $ (4.29
) $ 0.60 $ (3.66 ) Discontinued operations (0.01 )
0.15 (0.04 ) 0.15 $ 0.36 $ (4.14
) $ 0.56 $ (3.51 ) Diluted: Continuing operations $ 0.37 $
(4.29 ) $ 0.60 $ (3.66 ) Discontinued operations (0.01 )
0.15 (0.04 ) 0.15 $ 0.36
$ (4.14 ) $ 0.56 $ (3.51 ) Cash dividends declared
per common share $ 0.025 $ 0.35 $ 0.175 $ 0.775
(1) Excludes Depreciation and amortization and Reclamation and
remediation.
NEWMONT MINING CORPORATION CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited, in
millions)
Three Months Ended Six Months
Ended June 30, June 30, 2014 2013
2014 2013 Operating activities: Net income (loss) $
145 $ (2,273 ) $ 193 $ (1,917 ) Adjustments: Depreciation and
amortization 306 415 604 682 Stock based compensation and other
non-cash benefits 14 19 27 38 Reclamation and remediation 21 18 41
36 Loss (income) from discontinued operations 2 (74 ) 19 (74 )
Write-downs 13 2,262 13 2,262 Impairment of marketable securities -
7 1 11 Deferred income taxes (127 ) (469 ) (92 ) (480 ) Gain on
asset and investment sales, net (2 ) - (52 ) (1 ) Other operating
adjustments and write-downs 109 558 260 632 Net change in operating
assets and liabilities (103 ) (170 ) (453 )
(457 ) Net cash provided from continuing operations 378 293
561 732 Net cash used in discontinued operations (3 )
(5 ) (6 ) (11 ) Net cash provided from operations
375 288 555 721
Investing activities: Additions to property, plant and mine
development (254 ) (610 ) (489 ) (1,120 ) Acquisitions, net - (5 )
(28 ) (13 ) Sale of marketable securities - - 25 1 Purchases of
marketable securities - - (1 ) (1 ) Proceeds from sale of other
assets 6 24 76 49 Other (2 ) (7 ) (11 )
(21 ) Net cash used in investing activities (250 )
(598 ) (428 ) (1,105 ) Financing activities: Proceeds
from debt, net 15 907 18 987 Repayment of debt (5 ) (534 ) (5 )
(534 ) Proceeds from stock issuance, net - 1 - 2 Sale of
noncontrolling interests 68 - 68 32 Acquisition of noncontrolling
interests (2 ) (4 ) (4 ) (10 ) Dividends paid to noncontrolling
interests (4 ) (2 ) (4 ) (2 ) Dividends paid to common stockholders
(12 ) (174 ) (89 ) (385 ) Other (7 ) (2 ) (11
) (3 ) Net cash provided from (used in) financing activities
53 192 (27 ) 87
Effect of exchange rate changes on cash - (12
) (2 ) (16 ) Net change in cash and cash equivalents
178 (130 ) 98 (313 ) Cash and cash equivalents at beginning of
period 1,475 1,378 1,555
1,561 Cash and cash equivalents at end of period $
1,653 $ 1,248 $ 1,653 $ 1,248
NEWMONT MINING CORPORATION CONDENSED CONSOLIDATED
BALANCE SHEETS (unaudited, in millions)
At June 30, At December 31, 2014
2013 ASSETS Cash and cash equivalents $ 1,653 $ 1,555
Trade receivables 147 230 Accounts receivable 299 252 Investments
84 78 Inventories 863 717 Stockpiles and ore on leach pads 775 805
Deferred income tax assets 287 246 Other current assets
1,246 1,006 Current assets 5,354 4,889
Property, plant and mine development, net 14,043 14,277 Investments
347 439 Stockpiles and ore on leach pads 2,773 2,680 Deferred
income tax assets 1,611 1,478 Other long-term assets 848
844 Total assets $ 24,976 $ 24,607
LIABILITIES Debt $ 112 $ 595 Accounts payable 435 478
Employee-related benefits 232 341 Income and mining taxes 52 13
Other current liabilities 1,421 1,313
Current liabilities 2,252 2,740 Debt 6,673 6,145 Reclamation and
remediation liabilities 1,531 1,513 Deferred income tax liabilities
730 635 Employee-related benefits 345 323 Other long-term
liabilities 354 342 Total liabilities
11,885 11,698
EQUITY
Common stock 798 789 Additional paid-in capital 8,636 8,538
Accumulated other comprehensive income (loss) (242 ) (182 )
Retained earnings 1,039 848 Newmont
stockholders’ equity 10,231 9,993 Noncontrolling interests
2,860 2,916 Total equity 13,091
12,909 Total liabilities and equity $ 24,976 $
24,607
Regional
Operating Statistics Production Statistics Summary
Three Months Ended June 30, Six Months Ended June
30, 2014 2013
2014 2013
Consolidated gold ounces produced (thousands): North
America Carlin
209 203
438 434 Phoenix
52
64
105 116 Twin Creeks
94 116
190 215 La
Herradura
46 54
74 109
401 437
807 874
South America Yanacocha
190 291
398 577
Australia/New Zealand Boddington
168 171
342
347 Tanami
95 62
179 122 Jundee
74 73
138 150 Waihi
41 25
67 55 Kalgoorlie
77
73
167 151
455 404
893 825
Indonesia
Batu Hijau
15 13
31 27
Africa Ahafo
125 139
230 264 Akyem
113 -
232 -
238 139
462 264
1,299 1,284
2,591 2,567
Consolidated copper pounds produced (millions): Phoenix
12 9
24 16 Boddington
16 16
34 35 Batu
Hijau
34 36
81 76
62 61
139 127
Consolidated copper tonnes produced (thousands): Phoenix
5 4
11 7 Boddington
7 7
15 16 Batu
Hijau
16 16
37 35
28 27
63 58
Production Statistics Summary
Three Months Ended June 30, Six Months Ended June
30, 2014 2013
2014 2013
Attributable gold ounces produced (thousands): North
America Carlin
209 203
438 434 Phoenix
52
64
105 116 Twin Creeks
94 116
190 215 La
Herradura
46 54
74 109
401 437
807 874
South America Yanacocha
98 150
205 296 Other
South America Equity Interests
8 17
23 32
106
167
228 328
Australia/New Zealand Boddington
168 171
342 347 Tanami
95 62
179 122
Jundee
74 73
138 150 Waihi
41 25
67 55
Kalgoorlie
77 73
167 151 Other Australia/New Zealand
Equity Interests
13 14
25 29
468 418
918 854
Indonesia Batu Hijau
7 6
15 13
Africa Ahafo
125 139
230 264 Akyem
113 -
232 -
238 139
462 264
1,220 1,167
2,430 2,333
Attributable copper pounds
produced (millions): Phoenix
12 9
24 16
Boddington
16 16
34 35 Batu Hijau
17 17
39 37
45 42
97 88
Attributable copper
tonnes produced (thousands): Phoenix
5 4
11 7
Boddington
7 7
15 16 Batu Hijau
8 8
18
17
20 19
44 40
CAS Three Months Ended June
30, Six Months Ended June 30, 2014 2013
2014 2013
Gold
Costs Applicable to Sales ($/ounce)(1)
North America
Carlin $
1,003 $ 806 $
919 $ 806 Phoenix
601
579
613 796 Twin Creeks
507 628
522 592 La
Herradura
568 784
603 750
780 722
753 743
South
America Yanacocha
984 673
1,032 626
Australia/New Zealand Boddington
897 1,307
873
1,086 Tanami
680 1,064
680 1,156 Jundee
569
714
614 712 Waihi
468 995
577 954 Kalgoorlie
868 1,601
852 1,309
748 1,206
765 1,062
Indonesia Batu Hijau
1,071 5,299
1,161 3,682
Africa Ahafo
534 596
544 577 Akyem
396 -
353 -
468 596
448 577
Average $
744 $ 895 $
747 $ 830
Copper
Costs Applicable to Sales ($/pound)(1) Phoenix $
2.33
$ 1.65 $
2.36 $ 2.11 Boddington
2.42 3.25
2.53
2.78 Batu Hijau
2.82 11.23
2.90
7.71
Average $
2.53 $ 7.59 $
2.62 $
5.35
(1) Consolidated Costs applicable to sales excludes Depreciation
and amortization and Reclamation and remediation.
Capital
Expenditures Three Months Ended June 30,
Six Months Ended June 30, 2014 2013
2014 2013
Consolidated Capital Expenditures
($ million) North America Carlin $
60 $ 73 $
102 $ 119 Phoenix
9 37
16 68 Twin Creeks
28 18
60 43 La Herradura
8 45
14 64
Other North America
1 9
6
13
106 182
198
307
South America Yanacocha
21 41
35 89
Other South America
8 75
15 161
29 116
50 250
Australia/New Zealand Boddington
26 29
46 54 Tanami
18 21
38 44 Jundee
8 10
15 23 Waihi
2 5
5 8 Kalgoorlie
4 4
5 5 Other Australia/New Zealand
3
2
4 3
61
71
113 137
Indonesia Batu Hijau
16 33
31 56
16 33
31 56
Africa Ahafo
38 57
60 117 Akyem
(1 ) 88
- 154
37 145
60 271 Corporate
and Other
6 25
12
48
Total - Accrual Basis $
255 $ 572 $
464 $ 1,069
Change in Capital Accrual
(1 ) 38
25 51
Total -
Cash Basis $
254 $ 610 $
489 $ 1,120
Attributable to Newmont (Accrual Basis) $
233
$ 499 $
424 $ 919
Non-GAAP Financial Measures
Non-GAAP financial measures are intended to provide additional
information only and do not have any standard meaning prescribed by
generally accepted accounting principles (“GAAP”). These measures
should not be considered in isolation or as a substitute for
measures of performance prepared in accordance with GAAP.
Adjusted net income (loss)
Management of the Company uses Adjusted net income (loss) to
evaluate the Company’s operating performance, and for planning and
forecasting future business operations. The Company believes the
use of Adjusted net income (loss) allows investors and analysts to
compare results of the continuing operations of the Company and its
direct and indirect subsidiaries relating to the production and
sale of minerals to similar operating results of other mining
companies, by excluding exceptional or unusual items. Management’s
determination of the components of Adjusted net income (loss) are
evaluated periodically and based, in part, on a review of non-GAAP
financial measures used by mining industry analysts. Net income
(loss) attributable to Newmont stockholders is reconciled to
Adjusted net income (loss) as follows:
Three Months Ended
June 30, Six Months Ended June 30, 2014
2013 2014 2013 Net income
(loss) attributable to Newmont stockholders $ 180 $ (2,059 ) $ 280
$ (1,745 ) Loss (income) from discontinued operations 2 (74 ) 19
(74 ) Impairments and loss provisions 5 1,497 7 1,501 Tax valuation
allowance (98 ) 535 (98 ) 535 Restructuring and other 4 11 7 16
Asset sales (1 ) - (14 ) - Abnormal production costs at Batu Hijau
9 - 9 - TMAC transaction costs - -
- 30 Adjusted net income (loss) $ 101
$ (90 ) $ 210 $ 263 Adjusted net income (loss)
per share, basic $ 0.20 $ (0.18 ) $ 0.42 $ 0.53 Adjusted net income
(loss) per share, diluted $ 0.20 $ (0.18 ) $ 0.42 $ 0.53
Costs applicable to sales per ounce/pound
Costs applicable to sales per ounce/pound are non-GAAP financial
measures. These measures are calculated by dividing the costs
applicable to sales of gold and copper by gold ounces or copper
pounds sold, respectively. These measures are calculated on a
consistent basis for the periods presented on a consolidated basis.
Costs applicable to sales per ounce/pound statistics are intended
to provide additional information only and do not have any
standardized meaning prescribed by GAAP and should not be
considered in isolation or as a substitute for measures of
performance prepared in accordance with GAAP. The measures are not
necessarily indicative of operating profit or cash flow from
operations as determined under GAAP. Other companies may calculate
these measures differently.
The following tables reconcile these non-GAAP measures to the
most directly comparable GAAP measures.
Costs applicable to sales per ounce Three
Months Ended June 30, Six Months Ended June
30, 2014 2013 2014
2013 Costs applicable to sales(1) $ 944 $
1,192 $ 1,904 $ 2,143 Gold sold (thousand ounces) 1,269 1,331 2,547
2,583 Costs applicable to sales per ounce $ 744 $ 895 $ 747 $ 830
(1)Includes by-product credits of $20 and $38 in the second
quarter and first half of 2014, respectively and $22 and $49 in the
second quarter and first half of 2013, respectively.
Costs applicable to sales per pound Three Months Ended
June 30, Six Months Ended June 30, 2014
2013 2014 2013 Costs applicable to
sales(1) $ 116 $ 490 $ 239 $ 596 Copper sold (million pounds) 46 64
90 111 Costs applicable to sales per pound $ 2.53 $ 7.59 $ 2.62 $
5.35 (1)Includes by-product credits of $4 and $9 in the
second quarter and first half of 2014, respectively and $2 and $5
in the second quarter and first half of 2013, respectively.
All-In Sustaining Costs
Newmont has worked to develop a metric that expands on GAAP
measures such as cost of goods sold and non-GAAP measures to
provide visibility into the economics of our mining operations
related to expenditures, operating performance and the ability to
generate cash flow from operations.
Current GAAP-measures used in the mining industry, such as cost
of goods sold, do not capture all of the expenditures incurred to
discover, develop, and sustain gold production. Therefore, we
believe that All-in sustaining costs is a non-GAAP measure that
provides additional information to management, investors, and
analysts that aid in the understanding of the economics of our
operations and performance compared to other producers and in the
investor’s visibility by better defining the total costs associated
with production.
All-in sustaining cost (“AISC”) amounts are intended to provide
additional information only and do not have any standardized
meaning prescribed by GAAP and should not be considered in
isolation or as a substitute for measures of performance prepared
in accordance with GAAP. The measures are not necessarily
indicative of operating profit or cash flow from operations as
determined under GAAP. Other companies may calculate these measures
differently as a result of differences in the underlying accounting
principles, policies applied and in accounting frameworks such as
in International Financial Reporting Standards (“IFRS”), or by
reflecting the benefit from selling non-gold metals as a reduction
to AISC. Differences may also arise related to definitional
differences of sustaining versus development capital activities
based upon each company’s internal policies.
The following disclosure provides information regarding the
adjustments made in determining Newmont’s All-in sustaining costs
measure:
Cost Applicable to Sales - Includes all direct and indirect
costs related to current production incurred to execute the current
mine plan. Costs Applicable to Sales (“CAS”) includes by-product
credits from certain metals obtained during the process of
extracting and processing the primary ore-body. CAS is accounted
for on an accrual basis and excludes Depreciation and Amortization
and Reclamation and remediation, which is consistent with our
presentation of CAS on the Condensed Consolidated Statements of
Income. In determining All-in sustaining costs, only the CAS
associated with producing and selling an ounce of gold or a pound
of copper is included in the measure. Therefore, the amount of CAS
included in AISC is derived from the CAS presented in the Company’s
Condensed Consolidated Statements of Income. The allocation of CAS
between gold and copper at the Phoenix, Boddington, and Batu Hijau
mines is based upon the relative production percentage of copper
and gold sold during the period.
Remediation Costs - Includes accretion expense related to asset
retirement obligations (“ARO”) and the amortization of the related
Asset Retirement Cost (“ARC”) for the Company’s operating
properties recorded as an ARC asset. Accretion related to ARO and
the amortization of the ARC assets for reclamation and remediation
do not reflect annual cash outflows but are calculated in
accordance with GAAP. The accretion and amortization reflect the
periodic costs of reclamation and remediation associated with
current gold production and are therefore included in the measure.
The allocation of these costs to gold and copper is determined
using the same allocation used in the allocation of CAS between
gold and copper at the Phoenix, Boddington, and Batu Hijau
mines.
Advanced Projects and Exploration - Includes incurred expenses
related to projects that are designed to increase or enhance
current gold production and gold exploration. We note that as
current resources are depleted, exploration and advanced projects
are necessary for us to replace the depleting reserves or enhance
the recovery and processing of the current reserves. As this
relates to sustaining our gold production, and is considered a
continuing cost of a mining company, these costs are included in
the AISC measure. These costs are derived from the Advanced
projects, research and development and Exploration amounts
presented in the Company’s Condensed Consolidated Statements of
Income. The allocation of these costs to gold and copper is
determined using the same allocation used in the allocation of CAS
between gold and copper at the Phoenix, Boddington, and Batu Hijau
mines.
General and Administrative - Includes cost related to
administrative tasks not directly related to current gold
production, but rather related to support our corporate structure
and fulfilling our obligations to operate as a public company.
Including these expenses in the AISC metric provides visibility of
the impact that general and administrative activities have on
current operations and profitability on a per ounce basis.
Other Expense, net - Includes costs related to regional
administration and community development to support current
production. We exclude certain exceptional or unusual expenses from
Other expense, net, such as restructuring, as these are not
indicative to sustaining our current operations. Furthermore, this
adjustment to Other expense, net is also consistent with the nature
of the adjustments made to Net income (loss) as disclosed in the
Company’s non-GAAP financial measure Adjusted net income (loss).
The allocation of these costs to gold and copper is determined
using the same allocation used in the allocation of CAS between
gold and copper at the Phoenix, Boddington, and Batu Hijau
mines.
Treatment and Refining Costs - Includes costs paid to smelters
for treatment and refining of our concentrates to produce the
salable precious metal. These costs are presented net as a
reduction of Sales.
Sustaining Capital - We determined sustaining capital as those
capital expenditures that are necessary to maintain current gold
production and execute the current mine plan. Capital expenditures
to develop new operations, or related to projects at existing
operations where these projects will enhance gold production or
reserves, are considered development. We determined the breakout of
sustaining and development capital costs based on a systematic
review of our project portfolio in light of the nature of each
project. Sustaining capital costs are relevant to the AISC metric
as these are needed to maintain the Company’s current gold
operations and provide improved transparency related to our ability
to finance these expenditures from current operations. The
allocation of these costs to gold and copper is determined using
the same allocation used in the allocation of CAS between gold and
copper at the Phoenix, Boddington, and Batu Hijau mines.
Costs Advanced
Other Treatment and All-In Ounces
(000)/ All-In Sustaining Three Months Ended
Applicable Remediation Projects and General
and Expense, Refining Sustaining
Sustaining Pounds (millions) Costs June 30,
2014 to Sales(1)(2)(3) Costs(4)
Exploration Administrative Net(5)
Costs Capital(6) Costs Sold
per oz/lb GOLD Carlin $ 209 $ 1 $ 7 $ - $ 3 $ - $ 35
$ 255 209 $ 1,220 Phoenix 35 1 - - - 3 1 40 57 702 Twin Creeks 49 -
3 - - - 29 81 96 844 La Herradura 26 - 2 - - - 9 37 46 804 Other
North America - - 6 - 1 -
1 8 - - North America 319 2
18 - 4 3 75 421 408
1,032 Yanacocha 184 29 9 - 8 - 20 250 186 1,344 Other
South America - - 9 - 1 -
- 10 - - South America 184 29
18 - 9 - 20 260 186
1,398 Boddington 133 2 - - - 1 21 157 148 1,061
Tanami 63 1 4 - - - 17 85 92 924 Jundee 43 2 - - 1 - 9 55 76 724
Waihi 19 - 1 - 1 - 1 22 41 537 Kalgoorlie 65 - 2 - - 1 4 72 75 960
Other Australia/New Zealand - - 1 -
3 - 5 9 - - Australia/New
Zealand 323 5 8 - 5 2
57 400 432 926 Batu Hijau 9 - - - 1 - 3
13 9 1,444 Other Indonesia - - - -
1 - - 1 - - Indonesia 9
- - - 2 - 3 14 9
1,556 Ahafo 65 1 5 - 1 - 36 108 121 893 Akyem 44 1 -
- 2 - - 47 113 416 Other Africa - - 3 -
3 - - 6 - - Africa 109
2 8 - 6 - 36 161
234 688 Corporate and Other - -
30 48 12 - 3 93 - - Total
Gold $ 944 $ 38 $ 82 $ 48 $ 38 $ 5 $ 194 $ 1,349 1,269 $ 1,063
COPPER Phoenix $ 30 $ 1 $ - $ - $ 1 $ 2 $ 7 $ 41 13 $
3.15 Boddington 32 1 - - - 5 5 43 13 3.31 Batu Hijau 54
3 1 - 6 4 14 82 19
4.32 Total Copper $ 116 $ 5 $ 1 $ - $ 7 $ 11 $ 26 $ 166 45 $
3.69 Attributable to Newmont $ 124 35 $ 3.54 Consolidated $
1,060 $ 43 $ 83 $ 48 $ 45 $ 16 $ 220 $ 1,515 (1) Excludes
Depreciation and amortization and Reclamation and remediation. (2)
Includes by-product credits of $24. (3) Includes planned stockpile
and leach pad inventory adjustments of $32 at Carlin, $2 at Twin
Creeks, $20 at Yanacocha, $15 at Boddington, and $2 at Batu Hijau.
(4) Remediation costs include operating accretion of $18 and
amortization of asset retirement costs of $25. (5) Other expense,
net is adjusted for restructuring costs of $6. (6) Excludes
development capital expenditures, capitalized interest, and the
increase in accrued capital of $34. The following are major
development projects: Turf Vent Shaft, Conga, and Merian for 2014.
Costs Advanced
Other Treatment and All-In Ounces
(000)/ All-In Sustaining Three Months Ended
Applicable Remediation Projects and General
and Expense, Refining Sustaining
Sustaining Pounds (millions) Costs June 30,
2013 to Sales(1)(2)(3) Costs(4)
Exploration Administrative Net(5)
Costs Capital(6) Costs Sold
per oz/lb GOLD Carlin $ 169 $ 2 $ 8 $ - $ 1 $ - $ 49
$ 229 210 $ 1,090 Phoenix 37 1 2 - 1 2 6 49 64 766 Twin Creeks 80 1
3 - 1 - 12 97 125 776 La Herradura 42 - 15 - - - 41 98 54 1,815
Other North America - - 13 - 1
- 9 23 - - North America 328
4 41 - 4 2 117 496
453 1,095 Yanacocha 201 22 10 - 15 - 31 279 296 943
Other South America - - 2 - -
- - 2 - - South America 201
22 12 - 15 - 31
281 296 949 Boddington 252 2 - - 1 2 21 278 193 1,440
Tanami 64 - 3 - 1 - 20 88 60 1,467 Jundee 51 3 3 - 1 - 12 70 73 959
Waihi 25 1 1 - - - 5 32 25 1,280 Kalgoorlie 123 1 1 - 1 - 2 128 77
1,662 Other Australia/New Zealand - - 4
- 11 - (1) 14 - - Australia/New
Zealand 515 7 12 - 15 2
59 610 428 1,425 Batu Hijau 63
- 1 - 1 1 5 71 12
5,917 Indonesia 63 - 1 -
1 1 5 71 12 5,917 Ahafo 85 1 11
- 2 - 38 137 142 965 Akyem - - 2 - - - - 2 - - Other Africa
- - 4 - 4 - - 8 -
- Africa 85 1 17 - 6
- 38 147 142 1,035 Corporate and
Other - - 34 54 9 -
6 103 - - Total Gold $ 1,192 $ 34 $ 117 $ 54 $
50 $ 5 $ 256 $ 1,708 1,331 $ 1,283
COPPER Phoenix $
15 $ - $ 1 $ - $ - $ 1 $ 2 $ 19 8 $ 2.38 Boddington 62 - - - - 5 6
73 19 3.84 Batu Hijau 413 2 4 -
6 11 30 466 37 12.59 Total Copper $ 490
$ 2 $ 5 $ - $ 6 $ 17 $ 38 $ 558 64 $ 8.72 Consolidated $
1,682 $ 36 $ 122 $ 54 $ 56 $ 22 $ 294 $ 2,266 (1) Excludes
Depreciation and amortization and Reclamation and remediation. (2)
Includes by-product credits of $24. (3) Includes stockpile and
leach pad inventory adjustments of $49 at Yanacocha, $86 at
Boddington, $0 at Tanami, $1 at Waihi, $45 at Kalgoorlie, and $366
at Batu Hijau. (4) Remediation costs include operating accretion of
$15 and amortization of asset retirement costs of $21. (5) Other
expense, net is adjusted for restructuring costs of $21. (6)
Excludes development capital expenditures, capitalized interest,
and the decrease in accrued capital of $316. The following are
major development projects: Phoenix Copper Leach, Turf Vent Shaft,
Vista Vein, La Herradura Mill, Yanacocha Bio Leach, Conga, Merian,
Ahafo North, Ahafo Mill Expansion, Subika Underground, and Akyem
for 2013.
Conference Call Information
A conference call will be held on Wednesday, July 30, 2014 at
10:00 a.m. Eastern Time (8:00 a.m. Mountain Time); it will also
be carried on the Company's website.
Conference Call
Details
Dial-In Number 888.469.0880 Intl Dial-In Number
415.228.3922 Leader Meredith Bandy Passcode Newmont Replay Number
800.294.3086 Intl Replay Number 402.220.9766 Replay Passcode 2014
Webcast Details
URL
http://event.on24.com/r.htm?e=811917&s=1&k=476C3CBABBF9B6626C9F6C04FC6F12BA
The second quarter 2014 results and related financial and
statistical information will be available after the market close on
Tuesday, July 29, 2014 on the “Investor Relations” section of the
Company’s website, www.newmont.com. Additionally, the conference
call will be archived for a limited time on the Company’s
website.
Cautionary Statement Regarding Forward Looking Statements,
Including Outlook:
This release contains “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. Such forward-looking statements
may include, without limitation: (i) estimates of future production
and sales; (ii) estimates of future costs applicable to sales and
All-in sustaining costs; (iii) estimates of future consolidated and
attributable capital expenditures; (iv) plans and expectations to
reduce costs and expenditures; (v) expectations regarding the
development, growth and exploration potential of the Company’s
projects, including, without limitation, Merian; and (vi)
expectations regarding the timing and/or likelihood of resolution
of export issues in Indonesia. Estimates or expectations of future
events or results are based upon certain assumptions, which may
prove to be incorrect. Such assumptions, include, but are not
limited to: (i) there being no significant change to current
geotechnical, metallurgical, hydrological and other physical
conditions; (ii) permitting, development, operations and expansion
of the Company’s operations and projects being consistent with
current expectations and mine plans, including without limitation
receipt of export approvals; (iii) political developments in any
jurisdiction in which the Company operates being consistent with
its current expectations; (iv) certain exchange rate assumptions
for the Australian dollar to the U.S. dollar, as well as other the
exchange rates being approximately consistent with current levels;
(v) certain price assumptions for gold, copper and oil; (vi) prices
for key supplies being approximately consistent with current
levels; (vii) the accuracy of our current mineral reserve and
mineral resource estimates; and (viii) other assumptions noted
herein. Where the Company expresses or implies an expectation or
belief as to future events or results, such expectation or belief
is expressed in good faith and believed to have a reasonable basis.
However, such statements are subject to risks, uncertainties and
other factors, which could cause actual results to differ
materially from future results expressed, projected or implied by
the “forward-looking statements”. Such risks include, but are not
limited to, gold and other metals price volatility, currency
fluctuations, increased production costs and variances in ore grade
or recovery rates from those assumed in mining plans, political and
operational risks, community relations, conflict resolution and
outcome of projects or oppositions and governmental regulation and
judicial outcomes. For a more detailed discussion of such risks and
other factors, see the Company’s 2013 Annual Report on Form 10-K,
filed on February 21, 2014, with the Securities and Exchange
Commission, as well as the Company’s other SEC filings. The Company
does not undertake any obligation to release publicly revisions to
any “forward-looking statement,” including, without limitation,
outlook, to reflect events or circumstances after the date of this
news release, or to reflect the occurrence of unanticipated events,
except as may be required under applicable securities laws.
Investors should not assume that any lack of update to a previously
issued “forward-looking statement” constitutes a reaffirmation of
that statement. Continued reliance on “forward-looking statements”
is at investors' own risk.
Investors are reminded that this news release should be read in
conjunction with Newmont’s Second Quarter Form 10-Q filed with the
Securities and Exchange Commission on or about July 29, 2014
(available at www.newmont.com).
Newmont Mining CorporationInvestor Contacts:Meredith
Bandy, 303-837-5143meredith.bandy@newmont.comKirsten Benefiel,
303-837-6117kirsten.benefiel@newmont.comorMedia
Contacts:Omar Jabara, 303-837-5114omar.jabara@newmont.comDiane
Reberger, 303-967-9455diane.reberger@newmont.com
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