UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
Form 10-Q
(Mark One)
x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the Quarterly Period Ended March 31, 2014
or
¨ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the transition period from to
Commission File Number: 001-31240
NEWMONT MINING CORPORATION
(Exact name of registrant as specified in its charter)
Delaware | 84-1611629 | |
(State or Other Jurisdiction of Incorporation or Organization) |
(I.R.S. Employer Identification No.) | |
6363 South Fiddlers Green Circle | ||
Greenwood Village, Colorado | 80111 | |
(Address of Principal Executive Offices) | (Zip Code) |
Registrants telephone number, including area code (303) 863-7414
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. x Yes ¨ No
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). x Yes ¨ No
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See definitions of large accelerated filer, accelerated filer and smaller reporting company in Rule 12-b2 of the Exchange Act. (Check one):
Large accelerated filer | x | Accelerated filer | ¨ | |||
Non-accelerated filer | ¨ (Do not check if a smaller reporting company.) | Smaller reporting company | ¨ |
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12-b2 of the Exchange Act). ¨ Yes x No
There were 498,529,240 shares of common stock outstanding on April 16, 2014.
ITEM 1. | FINANCIAL STATEMENTS. |
NEWMONT MINING CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(unaudited, in millions except per share)
Three Months Ended March 31, |
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2014 | 2013 | |||||||
Sales (Note 4) |
$ | 1,764 | $ | 2,188 | ||||
Costs and expenses |
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Costs applicable to sales (1) (Note 4) |
1,083 | 1,057 | ||||||
Amortization (Note 4) |
298 | 267 | ||||||
Reclamation and remediation (Note 5) |
20 | 18 | ||||||
Exploration |
34 | 59 | ||||||
Advanced projects, research and development |
42 | 52 | ||||||
General and administrative |
45 | 56 | ||||||
Other expense, net (Note 6) |
52 | 100 | ||||||
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1,574 | 1,609 | |||||||
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Other income (expense) |
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Other income, net (Note 7) |
46 | 26 | ||||||
Interest expense, net |
(93 | ) | (65 | ) | ||||
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(47 | ) | (39 | ) | |||||
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Income before income and mining tax and other items |
143 | 540 | ||||||
Income and mining tax expense (Note 8) |
(78 | ) | (180 | ) | ||||
Equity income (loss) of affiliates |
| (4 | ) | |||||
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Income from continuing operations |
65 | 356 | ||||||
Income (loss) from discontinued operations (Note 9) |
(17 | ) | | |||||
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Net income |
48 | 356 | ||||||
Net loss (income) attributable to noncontrolling interests (Note 10) |
52 | (42 | ) | |||||
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Net income attributable to Newmont stockholders |
$ | 100 | $ | 314 | ||||
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Net income (loss) attributable to Newmont stockholders: |
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Continuing operations |
$ | 117 | $ | 314 | ||||
Discontinued operations |
(17 | ) | | |||||
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$ | 100 | $ | 314 | |||||
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Income (loss) per common share (Note 11) |
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Basic: |
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Continuing operations |
$ | 0.23 | $ | 0.63 | ||||
Discontinued operations |
(0.03 | ) | | |||||
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$ | 0.20 | $ | 0.63 | |||||
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Diluted: |
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Continuing operations |
$ | 0.23 | $ | 0.63 | ||||
Discontinued operations |
(0.03 | ) | | |||||
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$ | 0.20 | $ | 0.63 | |||||
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Cash dividends declared per common share |
$ | 0.150 | $ | 0.425 |
(1) | Excludes Amortization and Reclamation and remediation. |
The accompanying notes are an integral part of the condensed consolidated financial statements.
1
NEWMONT MINING CORPORATION
STATEMENTS OF CONDENSED CONSOLIDATED COMPREHENSIVE INCOME (LOSS)
(unaudited, in millions)
Three Months Ended March 31, | ||||||||
2014 | 2013 | |||||||
(in millions) | ||||||||
Net income |
$ | 48 | $ | 356 | ||||
Other comprehensive income (loss): |
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Unrealized gain(loss) on marketable securities, net of $(1) and $38 tax benefit (expense), respectively |
(31 | ) | (52 | ) | ||||
Foreign currency translation adjustments |
(5 | ) | (12 | ) | ||||
Change in pension and other post-retirement benefits, net of $1 and $3 tax expense, respectively |
2 | 5 | ||||||
Change in fair value of cash flow hedge instruments, net of $4 and $15 tax benefit (expense), respectively |
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Net change from periodic revaluations |
9 | 21 | ||||||
Net amount reclassified to income |
| (24 | ) | |||||
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Net unrecognized (loss) gain on derivatives |
9 | (3 | ) | |||||
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Other comprehensive income (loss) |
(25 | ) | (62 | ) | ||||
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Comprehensive income |
$ | 23 | $ | 294 | ||||
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Comprehensive income attributable to: |
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Newmont stockholders |
$ | 77 | $ | 253 | ||||
Noncontrolling interests |
(54 | ) | 41 | |||||
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$ | 23 | $ | 294 | |||||
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The accompanying notes are an integral part of the condensed consolidated financial statements.
2
NEWMONT MINING CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited, in millions)
Three Months Ended March 31, |
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2014 | 2013 | |||||||
Operating activities: |
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Net income |
$ | 48 | $ | 356 | ||||
Adjustments: |
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Amortization |
298 | 267 | ||||||
Stock based compensation and other non-cash benefits |
13 | 19 | ||||||
Reclamation and remediation |
20 | 18 | ||||||
Loss (income) from discontinued operations |
17 | | ||||||
Impairment of marketable securities |
1 | 4 | ||||||
Deferred income taxes |
35 | (11 | ) | |||||
Gain on asset and investment sales, net |
(50 | ) | (1 | ) | ||||
Other operating adjustments and write-downs |
151 | 74 | ||||||
Net change in operating assets and liabilities (Note 24) |
(350 | ) | (287 | ) | ||||
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Net cash provided from continuing operations |
183 | 439 | ||||||
Net cash used in discontinued operations |
(3 | ) | (6 | ) | ||||
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Net cash provided from operations |
180 | 433 | ||||||
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Investing activities: |
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Additions to property, plant and mine development |
(235 | ) | (510 | ) | ||||
Acquisitions, net |
(28 | ) | (8 | ) | ||||
Sale of marketable securities |
25 | 1 | ||||||
Purchases of marketable securities |
(1 | ) | (1 | ) | ||||
Proceeds from sale of other assets |
70 | 25 | ||||||
Other |
(9 | ) | (14 | ) | ||||
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Net cash used in investing activities |
(178 | ) | (507 | ) | ||||
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Financing activities: |
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Proceeds from debt, net |
3 | 80 | ||||||
Proceeds from stock issuance, net |
| 1 | ||||||
Sale of noncontrolling interests |
| 32 | ||||||
Acquisition of noncontrolling interests |
(2 | ) | (6 | ) | ||||
Dividends paid to common stockholders |
(77 | ) | (211 | ) | ||||
Other |
(4 | ) | (1 | ) | ||||
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Net cash provided from (used in) financing activities |
(80 | ) | (105 | ) | ||||
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Effect of exchange rate changes on cash |
(2 | ) | (4 | ) | ||||
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Net change in cash and cash equivalents |
(80 | ) | (183 | ) | ||||
Cash and cash equivalents at beginning of period |
1,555 | 1,561 | ||||||
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Cash and cash equivalents at end of period |
$ | 1,475 | $ | 1,378 | ||||
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The accompanying notes are an integral part of the condensed consolidated financial statements.
3
NEWMONT MINING CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited, in millions)
At March 31, | At December 31, | |||||||
2014 | 2013 | |||||||
ASSETS | ||||||||
Cash and cash equivalents |
$ | 1,475 | $ | 1,555 | ||||
Trade receivables |
206 | 230 | ||||||
Accounts receivable |
319 | 252 | ||||||
Investments (Note 16) |
83 | 78 | ||||||
Inventories (Note 17) |
814 | 717 | ||||||
Stockpiles and ore on leach pads (Note 18) |
760 | 805 | ||||||
Deferred income tax assets |
239 | 246 | ||||||
Other current assets (Note 19) |
1,351 | 1,006 | ||||||
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Current assets |
5,247 | 4,889 | ||||||
Property, plant and mine development, net |
14,138 | 14,277 | ||||||
Investments (Note 16) |
393 | 439 | ||||||
Stockpiles and ore on leach pads (Note 18) |
2,723 | 2,680 | ||||||
Deferred income tax assets |
1,416 | 1,473 | ||||||
Other long-term assets (Note 19) |
881 | 849 | ||||||
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Total assets |
$ | 24,798 | $ | 24,607 | ||||
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LIABILITIES | ||||||||
Debt (Note 20) |
$ | 615 | $ | 595 | ||||
Accounts payable |
463 | 478 | ||||||
Employee-related benefits |
247 | 341 | ||||||
Income and mining taxes |
27 | 13 | ||||||
Other current liabilities (Note 21) |
1,532 | 1,313 | ||||||
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Current liabilities |
2,884 | 2,740 | ||||||
Debt (Note 20) |
6,146 | 6,145 | ||||||
Reclamation and remediation liabilities (Note 5) |
1,519 | 1,513 | ||||||
Deferred income tax liabilities |
696 | 635 | ||||||
Employee-related benefits |
333 | 323 | ||||||
Other long-term liabilities (Note 21) |
339 | 342 | ||||||
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Total liabilities |
11,917 | 11,698 | ||||||
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Commitments and contingencies (Note 26) |
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EQUITY | ||||||||
Common stock |
798 | 789 | ||||||
Additional paid-in capital |
8,458 | 8,441 | ||||||
Accumulated other comprehensive income (loss) |
(205 | ) | (182 | ) | ||||
Retained earnings |
968 | 945 | ||||||
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Newmont stockholders equity |
10,019 | 9,993 | ||||||
Noncontrolling interests |
2,862 | 2,916 | ||||||
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Total equity |
12,881 | 12,909 | ||||||
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Total liabilities and equity |
$ | 24,798 | $ | 24,607 | ||||
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The accompanying notes are an integral part of the condensed consolidated financial statements.
4
NEWMONT MINING CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
(dollars in millions, except per share, per ounce and per pound amounts)
NOTE 1 BASIS OF PRESENTATION
The interim Condensed Consolidated Financial Statements (interim statements) of Newmont Mining Corporation and its subsidiaries (collectively, Newmont or the Company) are unaudited. In the opinion of management, all adjustments and disclosures necessary for a fair presentation of these interim statements have been included. The results reported in these interim statements are not necessarily indicative of the results that may be reported for the entire year. These interim statements should be read in conjunction with Newmonts Consolidated Financial Statements for the year ended December 31, 2013 filed February 20, 2014 on Form 10-K. The year-end balance sheet data was derived from the audited financial statements and, in accordance with the instructions to Form 10-Q, certain information and footnote disclosures required by United States generally accepted accounting principles (GAAP) have been condensed or omitted. References to A$ refer to Australian currency, C$ to Canadian currency and NZ$ to New Zealand currency.
On February 18, 2014 the Company redeemed all outstanding exchangeable shares (other than those held by Newmont and its affiliates). On the date of the redemption, holders of exchangeable shares received, in exchange for each exchangeable share, one share of common stock of Newmont. At December 31, 2013, the value of the remaining outstanding exchangeable shares was included in Additional paid-in capital and Common shares.
Certain amounts in prior years have been reclassified to conform to the 2014 presentation. Reclassifications are related to a change in our reportable segments (see Notes 2 and 4), and include a change from by-product accounting for our Phoenix segment to co-product accounting.
In March 2014, we completed a review of our deferred tax and stockpile balances that resulted in the identification of certain errors in these accounts. These errors were not material to our consolidated financial condition, results of operations or cash flows as presented in our previously filed annual and quarterly financial statements; however, the adjustment to correct the cumulative effect of these errors would have been material if recorded in the first quarter of 2014. Accordingly, we revised our financial statements to correct these errors at and for the year ended December 31, 2013. The cumulative decrease to retained earnings was $148 at January 1, 2014. See Note 2 Revision of Financial Statements.
NOTE 2 REVISION OF FINANCIAL STATEMENTS
In March 2014, we determined our deferred tax assets related to certain foreign subsidiaries and Yanacocha stockpiles were overstated by $143 and $20 ($14 net of tax) at December 31, 2013, respectively. The stockpiles revision increased Costs applicable to sales by $2 ($1 net of tax) for the three months ended March 31, 2013. We have assessed the materiality of these misstatements in accordance with the Securities and Exchange Commissions Staff Accounting Bulletin (SAB) No. 99 and concluded that these errors are not material to our previously issued consolidated financial statements. Accordingly, by reference to SAB No. 108, our previously issued consolidated financial statements have been revised as follows:
Three Months Ended March 31, 2013 | ||||||||||||||||
Condensed Consolidated Statement of Income |
As Previously Reported |
Co-product Reclassification(1) |
Revision | As Revised | ||||||||||||
Sales |
$ | 2,177 | $ | 11 | $ | | $ | 2,188 | ||||||||
Costs applicable to sales |
1,044 | 11 | 2 | 1,057 | ||||||||||||
Net income (loss) |
357 | | (1 | ) | 356 | |||||||||||
Net income (loss) attributable to Newmont stockholders |
315 | | (1 | ) | 314 | |||||||||||
Income (loss) per common share |
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Basic |
$ | 0.63 | $ | | $ | | $ | 0.63 | ||||||||
Diluted |
$ | 0.63 | $ | | $ | | $ | 0.63 |
5
NEWMONT MINING CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)
(dollars in millions, except per share, per ounce and per pound amounts)
Three Months Ended March 31, 2013 | ||||||||||||
Condensed Consolidated Statement of Cash Flows |
As Previously Reported |
Revision | As Revised | |||||||||
Net income |
$ | 357 | $ | (1 | ) | $ | 356 | |||||
Net changes in operating assets and liabilities |
(288 | ) | 1 | (287 | ) | |||||||
Net cash provided from continuing operations |
439 | | 439 |
At December 31, 2013 | ||||||||||||
Condensed Consolidated Balance Sheet |
As Previously Reported |
Revision | As Revised |
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Stockpiles and ore on leach pads(2) |
$ | 3,506 | $ | (21 | ) | $ | 3,485 | |||||
Deferred income tax assets(3) |
1,860 | (141 | ) | 1,719 | ||||||||
Other long-term assets |
844 | 5 | 849 | |||||||||
Total Assets |
24,764 | (157 | ) | 24,607 | ||||||||
Employee-related benefits |
325 | (2 | ) | 323 | ||||||||
Total liabilities |
11,700 | (2 | ) | 11,698 | ||||||||
Retained earnings |
1,093 | (148 | ) | 945 | ||||||||
Newmont stockholders equity |
10,141 | (148 | ) | 9,993 | ||||||||
Noncontrolling interests |
2,923 | (7 | ) | 2,916 | ||||||||
Total equity |
13,064 | (155 | ) | 12,909 | ||||||||
Total liabilities and equity |
24,764 | (157 | ) | 24,607 |
(1) | Refer to Note 1 for information on the segment reclassifications. |
(2) | Includes current and noncurrent stockpiles and ore on leach pads. |
(3) | Includes current and noncurrent deferred tax assets. |
NOTE 3 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Recently Adopted Accounting Pronouncements
Presentation of an Unrecognized Tax Benefit
In July 2013, ASC guidance was issued related to the presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss or a tax credit carryforward exists. The updated guidance requires an entity to net its unrecognized tax benefits against the deferred tax assets for all same jurisdiction net operating loss carryforward, a similar tax loss, or tax credit carryforwards. A gross presentation will be required only if such carryforwards are not available or would not be used by the entity to settle any additional income taxes resulting from disallowance of the uncertain tax position. Adoption of the new guidance, effective for the fiscal year beginning January 1, 2014, had no impact on the consolidated financial position, results of operations or cash flows.
6
NEWMONT MINING CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)
(dollars in millions, except per share, per ounce and per pound amounts)
Foreign Currency Matters
In March 2013, ASC guidance was issued related to Foreign Currency Matters to clarify the treatment of cumulative translation adjustments when a parent sells a part or all of its investment in a foreign entity or no longer holds a controlling financial interest in a subsidiary or group of assets that is a business within a foreign entity. The updated guidance also resolves the diversity in practice for the treatment of business combinations achieved in stages in a foreign entity. Adoption of the new guidance, effective for the fiscal year beginning January 1, 2014, had no impact on the consolidated financial position, results of operations or cash flows.
Discontinued Operations
In April 2014, ASC guidance was issued related to Discontinued Operations which changed the criteria for determining which disposals can be presented as discontinued operations and modified related disclosure requirements. The updated guidance requires an entity to only classify discontinued operations due to a major strategic shift or a major effect on an entitys operations in the financial statements. The updated guidance will also require additional disclosures relating to discontinued operations. The Company early adopted this guidance prospectively at the beginning of fiscal year January 1, 2014. Adoption of the new guidance did not have an impact on the consolidated financial position, results of operations or cash flows.
NOTE 4 SEGMENT INFORMATION
The Companys reportable segments are based upon the Companys management structure that is focused on the geographic region for the Companys operations. Geographic regions include North America, South America, Australia/New Zealand, Indonesia, Africa and Corporate and Other. Segment results for 2013 have been retrospectively revised to reflect a change in our reportable segments to align with a change in the chief operating decision makers evaluation of the organization, effective in the first quarter of 2014. The Nevada operations have been revised to reflect Carlin, Phoenix, and Twin Creeks segments and Other Australia/New Zealand operations have been revised to reflect Tanami, Jundee, Waihi and Kalgoorlie segments. The Conga development project will be reported in the Other South America segment. The Nimba and Merian development projects, historically reported in Other Africa and Other South America, respectively, will be reported in Corporate and Other. The financial information relating to the Companys segments for all periods presented have been updated to reflect these changes and is as follows:
7
NEWMONT MINING CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)
(dollars in millions, except per share, per ounce and per pound amounts)
Sales | Costs Applicable to Sales |
Amortization | Advanced Projects and Exploration |
Pre-Tax Income (Loss) |
Capital Expenditures (1) |
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Three Months Ended March 31, 2014 |
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Carlin |
$ | 293 | $ | 192 | $ | 35 | $ | 4 | $ | 61 | $ | 42 | ||||||||||||
Phoenix |
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Gold |
70 | 34 | 5 | |||||||||||||||||||||
Copper |
32 | 26 | 3 | |||||||||||||||||||||
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Total |
102 | 60 | 8 | 1 | 29 | 7 | ||||||||||||||||||
Twin Creeks |
132 | 55 | 11 | 1 | 111 | 32 | ||||||||||||||||||
La Herradura |
31 | 16 | 8 | 4 | 3 | 6 | ||||||||||||||||||
Other North America |
| | | 6 | (9 | ) | 5 | |||||||||||||||||
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North America |
558 | 323 | 62 | 16 | 195 | 92 | ||||||||||||||||||
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Yanacocha |
265 | 221 | 101 | 7 | (87 | ) | 14 | |||||||||||||||||
Other South America |
| | | 8 | (8 | ) | 7 | |||||||||||||||||
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South America |
265 | 221 | 101 | 15 | (95 | ) | 21 | |||||||||||||||||
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Boddington: |
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Gold |
220 | 142 | 25 | |||||||||||||||||||||
Copper |
39 | 40 | 6 | |||||||||||||||||||||
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Total |
259 | 182 | 31 | | 37 | 20 | ||||||||||||||||||
Tanami |
105 | 55 | 17 | 1 | 28 | 20 | ||||||||||||||||||
Jundee |
82 | 42 | 17 | 1 | 21 | 7 | ||||||||||||||||||
Waihi |
33 | 19 | 5 | | 7 | 3 | ||||||||||||||||||
Kalgoorlie |
118 | 77 | 6 | 1 | 33 | 1 | ||||||||||||||||||
Other Australia/New Zealand |
| | 4 | 1 | (12 | ) | 1 | |||||||||||||||||
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Australia/New Zealand |
597 | 375 | 80 | 4 | 114 | 52 | ||||||||||||||||||
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Batu Hijau: |
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Gold |
8 | 8 | 2 | |||||||||||||||||||||
Copper |
42 | 57 | 13 | |||||||||||||||||||||
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Total |
50 | 65 | 15 | 1 | (51 | ) | 15 | |||||||||||||||||
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Indonesia |
50 | 65 | 15 | 1 | (51 | ) | 15 | |||||||||||||||||
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Ahafo |
141 | 61 | 16 | 9 | 44 | 22 | ||||||||||||||||||
Akyem |
153 | 38 | 21 | | 88 | 1 | ||||||||||||||||||
Other Africa |
| | | 2 | (3 | ) | | |||||||||||||||||
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Africa |
294 | 99 | 37 | 11 | 129 | 23 | ||||||||||||||||||
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Corporate and Other |
| | 3 | 29 | (149 | ) | 6 | |||||||||||||||||
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Consolidated |
$ | 1,764 | $ | 1,083 | $ | 298 | $ | 76 | $ | 143 | $ | 209 | ||||||||||||
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(1) | Includes a decrease in accrued capital expenditures of $26; consolidated capital expenditures on a cash basis were $235. |
8
NEWMONT MINING CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)
(dollars in millions, except per share, per ounce and per pound amounts)
Sales | Costs Applicable to Sales |
Amortization | Advanced Projects and Exploration |
Pre-Tax Income (Loss) |
Capital Expenditures (1) |
|||||||||||||||||||
Three Months Ended March 31, 2013 |
||||||||||||||||||||||||
Carlin |
$ | 351 | $ | 179 | $ | 32 | $ | 11 | $ | 128 | $ | 46 | ||||||||||||
Phoenix |
||||||||||||||||||||||||
Gold |
53 | 41 | 7 | |||||||||||||||||||||
Copper |
11 | 11 | 2 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total |
64 | 52 | 9 | 4 | (4 | ) | 31 | |||||||||||||||||
Twin Creeks |
166 | 52 | 18 | 3 | 92 | 25 | ||||||||||||||||||
La Herradura |
90 | 40 | 6 | 6 | 37 | 19 | ||||||||||||||||||
Other North America |
| | | 8 | (9 | ) | 4 | |||||||||||||||||
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|
|
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|
|
|
|
|
|||||||||||||
North America |
671 | 323 | 65 | 32 | 244 | 125 | ||||||||||||||||||
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|
|
|
|||||||||||||
Yanacocha |
455 | 160 | 70 | 13 | 193 | 48 | ||||||||||||||||||
Other South America |
| | | 3 | (2 | ) | 86 | |||||||||||||||||
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|
|
|
|
|
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South America |
455 | 160 | 70 | 16 | 191 | 134 | ||||||||||||||||||
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|
|
|
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Boddington: |
||||||||||||||||||||||||
Gold |
329 | 174 | 42 | |||||||||||||||||||||
Copper |
65 | 48 | 10 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total |
394 | 222 | 52 | | 115 | 25 | ||||||||||||||||||
Tanami |
98 | 75 | 16 | 2 | 4 | 23 | ||||||||||||||||||
Jundee |
124 | 54 | 16 | 4 | 50 | 13 | ||||||||||||||||||
Waihi |
50 | 28 | 8 | 1 | 12 | 3 | ||||||||||||||||||
Kalgoorlie |
120 | 75 | 5 | 1 | 39 | 1 | ||||||||||||||||||
Other Australia/New Zealand |
| | 2 | 4 | (12 | ) | 1 | |||||||||||||||||
|
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|
|
|
|
|
|
|
|
|
|
|||||||||||||
Australia/New Zealand |
786 | 454 | 99 | 12 | 208 | 66 | ||||||||||||||||||
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|
|
|
|
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Batu Hijau: |
||||||||||||||||||||||||
Gold |
11 | 7 | 2 | |||||||||||||||||||||
Copper |
70 | 47 | 9 | |||||||||||||||||||||
|
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|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total |
81 | 54 | 11 | 6 | (4 | ) | 23 | |||||||||||||||||
Other Indonesia |
| | | | 3 | | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Indonesia |
81 | 54 | 11 | 6 | (1 | ) | 23 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Ahafo |
195 | 66 | 17 | 13 | 103 | 60 | ||||||||||||||||||
Akyem |
| | | 3 | (5 | ) | 66 | |||||||||||||||||
Other Africa |
| | | 2 | (9 | ) | | |||||||||||||||||
|
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|
|
|
|
|
|
|
|
|
|
|||||||||||||
Africa |
195 | 66 | 17 | 18 | 89 | 126 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Corporate and Other |
| | 5 | 27 | (191 | ) | 23 | |||||||||||||||||
|
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|
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|
|
|
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|
|
|
|||||||||||||
Consolidated |
$ | 2,188 | $ | 1,057 | $ | 267 | $ | 111 | $ | 540 | $ | 497 | ||||||||||||
|
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|
|
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|
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|
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|
(1) | Includes a decrease in accrued capital expenditures of $13; consolidated capital expenditures on a cash basis were $510. |
9
NEWMONT MINING CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)
(dollars in millions, except per share, per ounce and per pound amounts)
NOTE 5 RECLAMATION AND REMEDIATION
The Companys Reclamation and remediation expense consisted of:
Three Months Ended March 31, | ||||||||
2014 | 2013 | |||||||
Accretionoperating |
$ | 18 | $ | 15 | ||||
Accretionnon-operating |
2 | 3 | ||||||
|
|
|
|
|||||
$ | 20 | $ | 18 | |||||
|
|
|
|
At March 31, 2014 and December 31, 2013, $1,441 and $1,432, respectively, were accrued for reclamation obligations relating to operating properties. In addition, the Company is involved in several matters concerning environmental obligations associated with former, primarily historic, mining activities. Generally, these matters concern developing and implementing remediation plans at the various sites involved. At March 31, 2014 and December 31, 2013, $174 and $179, respectively, were accrued for such obligations. These amounts are also included in Reclamation and remediation liabilities.
The following is a reconciliation of Reclamation and remediation liabilities:
Three Months Ended March 31, | ||||||||
2014 | 2013 | |||||||
Balance at beginning of period |
$ | 1,611 | $ | 1,539 | ||||
Additions, changes in estimates and other |
(8 | ) | (3 | ) | ||||
Liabilities settled |
(8 | ) | (9 | ) | ||||
Accretion expense |
20 | 18 | ||||||
|
|
|
|
|||||
Balance at end of period |
$ | 1,615 | $ | 1,545 | ||||
|
|
|
|
The current portion of Reclamation and remediation liabilities of $96 and $98 at March 31, 2014 and December 31, 2013, respectively, are included in Other current liabilities (see Note 21).
NOTE 6 OTHER EXPENSE, NET
Three Months Ended March 31, | ||||||||
2014 | 2013 | |||||||
Regional administration |
$ | 15 | $ | 18 | ||||
Community development |
11 | 13 | ||||||
Restructuring and other |
7 | 9 | ||||||
Western Australia power plant |
6 | 4 | ||||||
World Gold Council dues |
1 | 1 | ||||||
Transaction/Acquisition costs |
| 45 | ||||||
Other |
12 | 10 | ||||||
|
|
|
|
|||||
$ | 52 | $ | 100 | |||||
|
|
|
|
10
NEWMONT MINING CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)
(dollars in millions, except per share, per ounce and per pound amounts)
NOTE 7 OTHER INCOME, NET
Three Months Ended March 31, | ||||||||
2014 | 2013 | |||||||
Gain on Midas sale |
$ | 47 | $ | | ||||
Refinery income, net |
4 | 3 | ||||||
Gain on sale of investments, net |
4 | | ||||||
Development projects, net |
2 | 1 | ||||||
Interest |
1 | 4 | ||||||
Canadian Oil Sands dividends |
| 10 | ||||||
Derivative ineffectiveness, net |
| 3 | ||||||
Impairment of marketable securities |
(1 | ) | (4 | ) | ||||
Foreign currency exchange, net |
(14 | ) | (3 | ) | ||||
Other |
3 | 12 | ||||||
|
|
|
|
|||||
$ | 46 | $ | 26 | |||||
|
|
|
|
NOTE 8 INCOME AND MINING TAXES
During the first quarter of 2014, the Company recorded estimated income and mining tax expense of $78 resulting in an effective tax rate of 55%. Estimated income and mining tax expense during the first quarter of 2013 was $180 for an effective tax rate of 33%.
The Companys income and mining tax expense differed from the statutory rate of 35% for the following reasons:
Three Months Ended March 31, | ||||||||||||||||
2014 | 2013 | |||||||||||||||
Income before income and mining tax and other items |
$ | 143 | $ | 540 | ||||||||||||
|
|
|
|
|||||||||||||
Tax on income at 35% statutory rate |
35 | % | $ | 50 | 35 | % | $ | 189 | ||||||||
Reconciling items: |
||||||||||||||||
Percentage depletion |
(8 | ) | (11 | ) | (7 | ) | (41 | ) | ||||||||
Change in valuation allowance on deferred tax assets |
9 | 13 | 1 | 6 | ||||||||||||
Disallowed loss on sale of Midas |
9 | 13 | ||||||||||||||
Mining and other taxes |
6 | 8 | 3 | 18 | ||||||||||||
Effect of foreign earnings, net of credits |
2 | 2 | ||||||||||||||
Other |
2 | 3 | 1 | 8 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Income and mining tax expense |
55 | % | $ | 78 | 33 | % | $ | 180 | ||||||||
|
|
|
|
|
|
|
|
The Company operates in numerous countries around the world and accordingly it is subject to, and pays annual income taxes under, the various income tax regimes in the countries in which it operates. Some of these tax regimes are defined by contractual agreements with the local government, and others are defined by the general corporate income tax laws of the country. The Company has historically filed, and continues to file, all required income tax returns and pay the income taxes reasonably determined to be due. The tax rules and regulations in many countries are highly complex and subject to interpretation. From time to time the Company is subject to a review of its historic income tax filings and in connection with such reviews, disputes can arise with the taxing authorities over the interpretation or application of certain rules to the Companys business conducted within the country involved.
At March 31, 2014, the Companys total unrecognized tax benefit was $321 for uncertain income tax positions taken or expected to be taken on income tax returns. Of this, $78 represents the amount of unrecognized tax benefits that, if recognized, would affect the Companys effective income tax rate.
11
NEWMONT MINING CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)
(dollars in millions, except per share, per ounce and per pound amounts)
As a result of the statute of limitations that expire in the next 12 months in various jurisdictions, and possible settlements of audit-related issues with taxing authorities in various jurisdictions with respect to which none of the issues are individually significant, the Company believes that it is reasonably possible that the total amount of its net unrecognized income tax benefits will decrease by approximately $5 to $10 in the next 12 months.
NOTE 9 DISCONTINUED OPERATIONS
Discontinued operations include Holloway Mining Company, which owned the Holt-McDermott property (Holt property) that was sold to St. Andrew Goldfields Ltd. (St. Andrew) in 2006. In 2009, the Superior Court issued a decision finding Newmont Canada Corporation (Newmont Canada) liable for a sliding scale royalty on production from the Holt property, which was upheld in 2011 by the Ontario Court of Appeal. During the first quarter of 2014, the Company recorded a charge of $17, net of tax benefits of $8, related to an increase in gold price, an increase in expected future production and a decrease in discount rates at quarter end.
Net operating cash used in discontinued operations of $3 and $6 in the first quarter of 2014 and 2013 respectively relates to payments on the Holt property royalty.
NOTE 10 NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS
Three Months Ended March 31, | ||||||||
2014 | 2013 | |||||||
Minera Yanacocha |
$ | (29 | ) | $ | 57 | |||
Batu Hijau |
(23 | ) | (3 | ) | ||||
TMAC |
(1 | ) | (12 | ) | ||||
Other |
1 | | ||||||
|
|
|
|
|||||
$ | (52 | ) | $ | 42 | ||||
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|
|
|
Newmont has a 51.35% ownership interest in Minera Yanacocha S.R.L. (Yanacocha), with the remaining interests held by Compañia de Minas Buenaventura, S.A.A. (43.65%) and the International Finance Corporation (5%).
Newmont has a 48.5% effective economic interest in PT Newmont Nusa Tenggara (PTNNT) with remaining interests held by an affiliate of Sumitomo Corporation of Japan and various Indonesian entities. PTNNT operates the Batu Hijau copper and gold mine in Indonesia. Based on ASC guidance for variable interest entities, Newmont consolidates PTNNT in its Condensed Consolidated Financial Statements.
Newmont has a 70.4% economic ownership interest in TMAC, with remaining interests held by various outside investors.
12
NEWMONT MINING CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)
(dollars in millions, except per share, per ounce and per pound amounts)
NOTE 11 INCOME PER COMMON SHARE
Basic income per common share is computed by dividing income available to Newmont common stockholders by the weighted average number of common shares outstanding during the period. Diluted income per common share is computed similarly except that weighted average common shares is increased to reflect all dilutive instruments.
Three Months Ended March 31, | ||||||||
2014 | 2013 | |||||||
Net income attributable to Newmont stockholders |
$ | 100 | $ | 314 | ||||
Weighted average common shares (millions): |
||||||||
Basic |
498 | 497 | ||||||
Effect of employee stock-based awards |
1 | 1 | ||||||
|
|
|
|
|||||
Diluted |
499 | 498 | ||||||
|
|
|
|
|||||
Net income attributable to Newmont stockholders per common share |
||||||||
Basic: |
||||||||
Continuing operations |
$ | 0.23 | $ | 0.63 | ||||
Discontinued operations |
(0.03 | ) | | |||||
|
|
|
|
|||||
$ | 0.20 | $ | 0.63 | |||||
|
|
|
|
|||||
Diluted: |
||||||||
Continuing operations |
$ | 0.23 | $ | 0.63 | ||||
Discontinued operations |
(0.03 | ) | | |||||
|
|
|
|
|||||
$ | 0.20 | $ | 0.63 | |||||
|
|
|
|
Options to purchase 3 and 4 million shares of common stock at average exercise prices of $48 and $49 were outstanding at March 31, 2014 and 2013, respectively, but were not included in the computation of diluted weighted average common shares because their exercise prices exceeded the average price of the Companys common stock for the respective periods presented.
Newmont is required to settle the principal amount of its 2014 and 2017 Convertible Senior Notes in cash and may elect to settle the remaining conversion premium (average share price in excess of the conversion price), if any, in cash, shares or a combination thereof. The effect of contingently convertible instruments on diluted earnings per share is calculated under the net share settlement method in accordance with ASC guidance. The conversion price exceeded the Companys share price for the periods presented, therefore no additional shares were included in the computation of diluted weighted average common shares.
13
NEWMONT MINING CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)
(dollars in millions, except per share, per ounce and per pound amounts)
NOTE 12 EMPLOYEE PENSION AND OTHER BENEFIT PLANS
Three Months Ended March 31, | ||||||||
2014 | 2013 | |||||||
Pension benefit costs, net |
||||||||
Service cost |
$ | 6 | $ | 9 | ||||
Interest cost |
10 | 10 | ||||||
Expected return on plan assets |
(13 | ) | (12 | ) | ||||
Amortization, net |
3 | 8 | ||||||
|
|
|
|
|||||
$ | 6 | $ | 15 | |||||
|
|
|
|
|||||
Three Months Ended March 31, | ||||||||
2014 | 2013 | |||||||
Other benefit costs, net |
||||||||
Service cost |
$ | 1 | $ | 1 | ||||
Interest cost |
2 | 1 | ||||||
|
|
|
|
|||||
$ | 3 | $ | 2 | |||||
|
|
|
|
NOTE 13 STOCK BASED COMPENSATION
Three Months Ended March 31, | ||||||||
2014 | 2013 | |||||||
Stock options |
$ | 1 | $ | 3 | ||||
Restricted stock units |
7 | 9 | ||||||
Performance leveraged stock units |
3 | 2 | ||||||
Stock performance units |
3 | | ||||||
|
|
|
|
|||||
$ | 14 | $ | 14 | |||||
|
|
|
|
14
NEWMONT MINING CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)
(dollars in millions, except per share, per ounce and per pound amounts)
NOTE 14 FAIR VALUE ACCOUNTING
The following table sets forth the Companys assets and liabilities measured at fair value on a recurring basis (at least annually) by level within the fair value hierarchy. As required by accounting guidance, assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement.
Fair Value at March 31, 2014 | ||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | |||||||||||||
Assets: |
||||||||||||||||
Cash equivalents |
$ | 816 | $ | 816 | $ | | $ | | ||||||||
Marketable equity securities: |
||||||||||||||||
Extractive industries |
296 | 296 | | | ||||||||||||
Other |
15 | 15 | | | ||||||||||||
Marketable debt securities: |
||||||||||||||||
Asset backed commercial paper |
23 | | | 23 | ||||||||||||
Auction rate securities |
5 | | | 5 | ||||||||||||
Trade receivable from provisional copper and gold concentrate sales, net |
183 | 183 | | | ||||||||||||
|
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|
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|
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|
|
|||||||||
$ | 1,338 | $ | 1,310 | $ | | $ | 28 | |||||||||
|
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|
|
|||||||||
Liabilities: |
||||||||||||||||
Derivative instruments, net: |
||||||||||||||||
Foreign exchange forward contracts |
$ | 53 | $ | | $ | 53 | $ | | ||||||||
Boddington contingent consideration |
10 | | | 10 | ||||||||||||
Holt property royalty |
156 | | | 156 | ||||||||||||
|
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|
|
|
|
|||||||||
$ | 219 | $ | | $ | 53 | $ | 166 | |||||||||
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The fair values of the derivative instruments in the table above are presented on a net basis. The gross amounts related to the fair value of the derivatives instruments above are included in the Derivatives Instruments Note (see Note 15). All other Fair Value disclosures in the above table are presented on a gross basis.
The following table sets forth a summary of the quantitative and qualitative information related to the unobservable inputs used in the calculation of the Companys Level 3 financial assets and liabilities at March 31, 2014:
Description |
At March 31, 2014 |
Valuation technique | Unobservable input |
Range/Weighted average |
||||||||
Auction Rate Securities |
$ | 5 | Discounted cash flow | Weighted average recoverability rate | 58 | % | ||||||
Asset Backed Commercial Paper |
23 | Discounted cash flow | Recoverability rate | 90 | % | |||||||
Boddington Contingent Consideration |
10 | Monte Carlo | Discount rate | 5 | % | |||||||
Long Term Gold price | $ | 1,300 | ||||||||||
Long Term Copper price | $ | 3.00 | ||||||||||
Holt property royalty |
156 | Monte Carlo | Weighted average discount rate | 5 | % | |||||||
Long Term Gold price | $ | 1,300 |
15
NEWMONT MINING CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)
(dollars in millions, except per share, per ounce and per pound amounts)
The following table sets forth a summary of changes in the fair value of the Companys Level 3 financial assets and liabilities at March 31, 2014:
Auction Rate Securities |
Asset Backed Commercial Paper |
Total Assets | Boddington Contingent Royalty |
Holt Property Royalty |
Total Liabilities |
|||||||||||||||||||
Balance at beginning of period |
$ | 5 | $ | 25 | $ | 30 | $ | 10 | $ | 134 | $ | 144 | ||||||||||||
Settlements |
| | | | (3 | ) | (3 | ) | ||||||||||||||||
Revaluation |
| (2 | ) | (2 | ) | | 25 | 25 | ||||||||||||||||
|
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|
|
|
|
|||||||||||||
Balance at end of period |
$ | 5 | $ | 23 | $ | 28 | $ | 10 | $ | 156 | $ | 166 | ||||||||||||
|
|
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|
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|
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|
|
At March 31, 2014, assets and liabilities classified within Level 3 of the fair value hierarchy represent 2% and 76%, respectively, of total assets and liabilities measured at fair value.
NOTE 15 DERIVATIVE INSTRUMENTS
The Companys strategy is to provide shareholders with leverage to changes in gold and copper prices by selling its production at spot market prices. Consequently, the Company does not hedge its gold and copper sales. The Company continues to manage certain risks associated with commodity input costs, interest rates and foreign currencies using the derivative market. All of the derivative instruments described below were transacted for risk management purposes and qualify as cash flow hedges.
Cash Flow Hedges
The foreign currency and diesel contracts are designated as cash flow hedges, and as such, the effective portion of unrealized changes in market value have been recorded in Accumulated other comprehensive income (loss) and are reclassified to income during the period in which the hedged transaction affects earnings. Gains and losses from hedge ineffectiveness are recognized in current earnings.
Foreign Currency Contracts
Newmont had the following foreign currency derivative contracts outstanding at March 31, 2014:
Expected Maturity Date | ||||||||||||||||||||||||
Total/ | ||||||||||||||||||||||||
2014 | 2015 | 2016 | 2017 | 2018 | Average | |||||||||||||||||||
A$ Operating Fixed Forward Contracts: |
||||||||||||||||||||||||
A$ notional (millions) |
234 | 270 | 158 | 105 | 6 | 773 | ||||||||||||||||||
Average rate ($/A$) |
1.00 | 0.98 | 0.95 | 0.93 | 0.92 | 0.97 | ||||||||||||||||||
Expected hedge ratio |
20 | % | 18 | % | 11 | % | 7 | % | 4 | % | | |||||||||||||
NZ$ Operating Fixed Forward Contracts: |
||||||||||||||||||||||||
NZ$ notional (millions) |
46 | 39 | 2 | | | 87 | ||||||||||||||||||
Average rate ($/NZ$) |
0.80 | 0.79 | 0.78 | | | 0.79 | ||||||||||||||||||
Expected hedge ratio |
57 | % | 32 | % | 9 | % | | |
16
NEWMONT MINING CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)
(dollars in millions, except per share, per ounce and per pound amounts)
Diesel Fixed Forward Contracts
Newmont had the following diesel derivative contracts outstanding at March 31, 2014:
Expected Maturity Date | ||||||||||||||||||||
Total/ | ||||||||||||||||||||
2014 | 2015 | 2016 | 2017 | Average | ||||||||||||||||
Diesel Fixed Forward Contracts: |
||||||||||||||||||||
Diesel gallons (millions) |
17 | 16 | 8 | 1 | 42 | |||||||||||||||
Average rate ($/gallon) |
2.86 | 2.77 | 2.68 | 2.61 | 2.79 | |||||||||||||||
Expected Nevada hedge ratio |
58 | % | 42 | % | 21 | % | 3 | % |
Derivative Instrument Fair Values
Newmont had the following derivative instruments designated as hedges at March 31, 2014 and December 31, 2013:
Fair Value | ||||||||||||||||
At March 31, 2014 | ||||||||||||||||
Other Current Assets |
Other Long- Term Assets |
Other Current Liabilities |
Other Long- Term Liabilities |
|||||||||||||
Foreign currency exchange contracts: |
||||||||||||||||
A$ operating fixed forwards |
$ | | $ | | $ | 24 | $ | 34 | ||||||||
NZ$ operating fixed forwards |
3 | 2 | | | ||||||||||||
Diesel fixed forwards |
1 | | 1 | | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total derivative instruments (Notes 19 and 21) |
$ | 4 | $ | 2 | $ | 25 | $ | 34 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Fair Value | ||||||||||||||||
At December 31, 2013 | ||||||||||||||||
Other Current Assets |
Other Long- Term Assets |
Other Current Liabilities |
Other Long- Term Liabilities |
|||||||||||||
Foreign currency exchange contracts: |
||||||||||||||||
A$ operating fixed forwards |
$ | | $ | | $ | 36 | $ | 60 | ||||||||
NZ$ operating fixed forwards |
1 | | | | ||||||||||||
Diesel fixed forwards |
3 | 1 | | | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total derivative instruments (Notes 19 and 21) |
$ | 4 | $ | 1 | $ | 36 | $ | 60 | ||||||||
|
|
|
|
|
|
|
|
17
NEWMONT MINING CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)
(dollars in millions, except per share, per ounce and per pound amounts)
The following tables show the location and amount of gains (losses) reported in the Companys Consolidated Financial Statements related to the Companys cash flow hedges.
Foreign Currency | Diesel Forward | Forward Starting | ||||||||||||||||||||||
Exchange Contracts | Contracts | Swaps | ||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||
For the three months ended March 31, |
||||||||||||||||||||||||
Cash flow hedging relationships: |
||||||||||||||||||||||||
Gain (loss) recognized in other comprehensive income (effective portion) |
$ | 34 | $ | 18 | $ | (2 | ) | $ | 3 | $ | | $ | | |||||||||||
Gain (loss) reclassified from Accumulated other comprehensive income into income (effective portion) (1) |
5 | 38 | | 1 | (5 | ) | (3 | ) | ||||||||||||||||
Gain (loss) reclassified from Accumulated other comprehensive income into income (ineffective portion) (2) |
| | | 3 | | |
(1) | The gain (loss) for the effective portion of the foreign exchange and diesel cash flow hedges reclassified from Accumulated other comprehensive income (loss) is included in Costs applicable to sales. The realized loss for the effective portion of the forward starting swaps reclassified from Accumulated other comprehensive income (loss) is included in Interest Expense. |
(2) | The ineffective portion recognized for cash flow hedges is included in Other Income, net. |
The amount to be reclassified from Accumulated other comprehensive income, net of tax to income for derivative instruments during the next 12 months is a loss of approximately $5.
Provisional Copper and Gold Sales
The Companys provisional copper and gold sales contain an embedded derivative that is required to be separated from the host contract for accounting purposes. The host contract is the receivable from the sale of the gold and copper concentrates at the prevailing indices prices at the time of sale. The embedded derivative, which does not qualify for hedge accounting, is marked to market through earnings each period prior to final settlement.
London Metal Exchange (LME) copper prices averaged $3.19 per pound during the first quarter of 2014, compared with the Companys recorded average provisional price of $3.12 per pound before mark-to-market adjustments and treatment and refining charges. During the first quarter of 2014, changes in copper prices resulted in a provisional pricing mark-to-market loss of $17 ($0.37 per pound). At March 31, 2014, Newmont had copper sales of 63 million pounds priced at an average of $3.02 per pound, subject to final pricing over the next several months.
The average London P.M. fix for gold was $1,293 per ounce during the first quarter of 2014, compared to the Companys recorded average provisional price of $1,292 per ounce before mark-to-market adjustments and treatment and refining charges. During the first quarter of 2014, changes in gold prices resulted in a provisional pricing mark-to-market gain of $4 ($4 per ounce). At March 31, 2014, Newmont had gold sales of 130,000 ounces priced at an average of $1,295 per ounce, subject to final pricing over the next several months.
18
NEWMONT MINING CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)
(dollars in millions, except per share, per ounce and per pound amounts)
NOTE 16 INVESTMENTS
At March 31, 2014 | ||||||||||||||||
Cost/Equity | Unrealized | Fair/Equity | ||||||||||||||
Basis | Gain | Loss | Basis | |||||||||||||
Current: |
||||||||||||||||
Marketable Equity Securities: |
||||||||||||||||
Gabriel Resources Ltd. |
$ | 36 | $ | 6 | $ | | $ | 42 | ||||||||
Other |
28 | 15 | (2 | ) | 41 | |||||||||||
|
|
|
|
|
|
|
|
|||||||||
$ | 64 | $ | 21 | $ | (2 | ) | $ | 83 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Long-term: |
||||||||||||||||
Marketable Debt Securities: |
||||||||||||||||
Asset backed commercial paper |
$ | 22 | $ | 1 | $ | | $ | 23 | ||||||||
Auction rate securities |
8 | | (3 | ) | 5 | |||||||||||
|
|
|
|
|
|
|
|
|||||||||
30 | 1 | (3 | ) | 28 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Marketable Equity Securities: |
||||||||||||||||
Regis Resources Ltd. |
165 | 39 | | 204 | ||||||||||||
Other |
20 | 5 | (1 | ) | 24 | |||||||||||
|
|
|
|
|
|
|
|
|||||||||
185 | 44 | (1 | ) | 228 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Other investments, at cost |
20 | | | 20 | ||||||||||||
Investment in Affiliates: |
||||||||||||||||
Euronimba Ltd. |
3 | | | 3 | ||||||||||||
Minera La Zanja S.R.L. |
98 | | | 98 | ||||||||||||
Novo Resources Corp. |
16 | | | 16 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
$ | 352 | $ | 45 | $ | (4 | ) | $ | 393 | ||||||||
|
|
|
|
|
|
|
|
19
NEWMONT MINING CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)
(dollars in millions, except per share, per ounce and per pound amounts)
At December 31, 2013 | ||||||||||||||||
Cost/Equity | Unrealized | Fair/Equity | ||||||||||||||
Basis | Gain | Loss | Basis | |||||||||||||
Current: |
||||||||||||||||
Marketable Equity Securities: |
||||||||||||||||
Gabriel Resources Ltd. |
$ | 37 | $ | | $ | | $ | 37 | ||||||||
Paladin Energy Ltd. |
21 | 1 | | 22 | ||||||||||||
Other |
19 | 4 | (4 | ) | 19 | |||||||||||
|
|
|
|
|
|
|
|
|||||||||
$ | 77 | $ | 5 | $ | (4 | ) | $ | 78 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Long-term: |
||||||||||||||||
Marketable Debt Securities: |
||||||||||||||||
Asset backed commercial paper |
$ | 23 | $ | 2 | $ | | $ | 25 | ||||||||
Auction rate securities |
8 | | (3 | ) | 5 | |||||||||||
|
|
|
|
|
|
|
|
|||||||||
31 | 2 | (3 | ) | 30 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Marketable Equity Securities: |
||||||||||||||||
Regis Resources Ltd. |
165 | 88 | | 253 | ||||||||||||
Other |
30 | 5 | | 35 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
195 | 93 | | 288 | |||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Other investments, at cost |
13 | | | 13 | ||||||||||||
Investment in Affiliates: |
||||||||||||||||
Minera La Zanja S.R.L. |
92 | | | 92 | ||||||||||||
Novo Resources Corp. |
16 | | | 16 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
$ | 347 | $ | 95 | $ | (3 | ) | $ | 439 | ||||||||
|
|
|
|
|
|
|
|
In March 2014, the Company sold its investment in Paladin Energy Ltd. for $25, resulting in a pre-tax gain of $4 recorded in Other income, net.
The following tables present the gross unrealized losses and fair value of the Companys investments with unrealized losses that are not deemed to be other-than-temporarily impaired, aggregated by length of time that the individual securities have been in a continuous unrealized loss position:
Less than 12 Months | 12 Months or Greater | Total | ||||||||||||||||||||||
At March 31, 2014 |
Fair Value | Unrealized Losses |
Fair Value | Unrealized Losses |
Fair Value | Unrealized Losses |
||||||||||||||||||
Marketable equity securities |
$ | 3 | $ | 2 | $ | | $ | | $ | 3 | $ | 2 | ||||||||||||
Auction rate securities |
| | 5 | 3 | 5 | 3 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
$ | 3 | $ | 2 | $ | 5 | $ | 3 | $ | 8 | $ | 5 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Less than 12 Months | 12 Months or Greater | Total | ||||||||||||||||||||||
At December 31, 2013 |
Fair Value | Unrealized Losses |
Fair Value | Unrealized Losses |
Fair Value | Unrealized Losses |
||||||||||||||||||
Marketable equity securities |
$ | 54 | $ | 4 | $ | | $ | | $ | 54 | $ | 4 | ||||||||||||
Auction rate securities |
| | 5 | 3 | 5 | 3 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
$ | 54 | $ | 4 | $ | 5 | $ | 3 | $ | 59 | $ | 7 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
20
NEWMONT MINING CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)
(dollars in millions, except per share, per ounce and per pound amounts)
While the fair value of the Companys investment in auction rate securities is below its cost, the Company views this decline as temporary. The Company has the ability and intends to hold its investment in auction rate securities until maturity or such time that the market recovers and therefore considers this loss temporary.
NOTE 17 INVENTORIES
At March 31, | At December 31, | |||||||
2014 | 2013 | |||||||
In-process |
$ | 120 | $ | 97 | ||||
Concentrate |
184 | 108 | ||||||
Precious metals |
20 | 26 | ||||||
Materials, supplies and other |
490 | 486 | ||||||
|
|
|
|
|||||
$ | 814 | $ | 717 | |||||
|
|
|
|
The Company recorded write-downs of $1 and $1, classified as components of Costs applicable to sales and Amortization, respectively, for the first quarter of 2014, to reduce the carrying value of Yanacochas inventories to net realizable value.
NOTE 18 STOCKPILES AND ORE ON LEACH PADS
At March 31, | At December 31, | |||||||
2014 | 2013 | |||||||
Current: |
||||||||
Stockpiles |
$ | 513 | $ | 580 | ||||
Ore on leach pads |
247 | 225 | ||||||
|
|
|
|
|||||
$ | 760 | $ | 805 | |||||
|
|
|
|
|||||
Long-term: |
||||||||
Stockpiles |
$ | 2,511 | $ | 2,434 | ||||
Ore on leach pads |
212 | 246 | ||||||
|
|
|
|
|||||
$ | 2,723 | $ | 2,680 | |||||
|
|
|
|
21
NEWMONT MINING CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)
(dollars in millions, except per share, per ounce and per pound amounts)
At March 31, | At December 31, | |||||||
2014 | 2013 | |||||||
Stockpiles and ore on leach pads: |
||||||||
Carlin |
$ | 433 | $ | 439 | ||||
Phoenix |
113 | 109 | ||||||
Twin Creeks |
319 | 327 | ||||||
La Herradura |
66 | 57 | ||||||
Yanacocha |
405 | 504 | ||||||
Boddington |
314 | 304 | ||||||
Tanami |
10 | 12 | ||||||
Jundee |
8 | 7 | ||||||
Waihi |
1 | 2 | ||||||
Kalgoorlie |
112 | 107 | ||||||
Batu Hijau |
1,328 | 1,290 | ||||||
Ahafo |
315 | 292 | ||||||
Akyem |
59 | 35 | ||||||
|
|
|
|
|||||
$ | 3,483 | $ | 3,485 | |||||
|
|
|
|
The Company recorded write-downs of $110 and $35, classified as components of Costs applicable to sales and Amortization, respectively, for the first quarter of 2014 to reduce the carrying value of stockpiles and ore on leach pads to net realizable value. Of the write-downs in 2014, $24 are related to Carlin, $2 to Twin Creeks, $54 to Yanacocha, $30 to Boddington and $35 to Batu Hijau.
NOTE 19 OTHER ASSETS
At March 31, | At December 31, | |||||||
2014 | 2013 | |||||||
Other current assets: |
||||||||
Refinery metal inventory and receivable |
$ | 947 | $ | 679 | ||||
Prepaid assets |
265 | 157 | ||||||
Other refinery metal receivables |
105 | 130 | ||||||
Derivative instruments |
4 | 4 | ||||||
Other |
30 | 36 | ||||||
|
|
|
|
|||||
$ | 1,351 | $ | 1,006 | |||||
|
|
|
|
|||||
Other long-term assets: |
||||||||
Income tax receivable |
$ | 254 | $ | 229 | ||||
Goodwill |
132 | 132 | ||||||
Intangible assets |
117 | 98 | ||||||
Prepaid royalties |
103 | 103 | ||||||
Restricted cash |
99 | 95 | ||||||
Debt issuance costs |
65 | 62 | ||||||
Prepaid maintenance costs |
34 | 31 | ||||||
Derivative instruments |
2 | 1 | ||||||
Other |
75 | 98 | ||||||
|
|
|
|
|||||
$ | 881 | $ | 849 | |||||
|
|
|
|
22
NEWMONT MINING CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)
(dollars in millions, except per share, per ounce and per pound amounts)
NOTE 20 DEBT
Scheduled minimum debt repayments are $623 for the remainder of 2014, $161 in 2015, $221 in 2016, $771 in 2017, $1 in 2018 and $5,105 thereafter.
Term Loan and Revolver Extension
On March 31, 2014, the Company entered into a $575 uncollateralized term loan facility with a syndicate of banks. The term loan allows for a single drawing any business day on or prior to July 15, 2014 (the Funding Date) and will mature five years after the Funding Date. Borrowings under the facility will bear interest at LIBOR plus a margin ranging from 0.875% to 1.65%. Fees and other debt issuance costs related to the facility will be capitalized and amortized over the term of the debt. Proceeds from the term loan are expected to be used to retire the $575 of maturing convertible debt in July 2014. There are no borrowings outstanding under the facility at March 31, 2014.
On March 31, 2014, the Companys Corporate Revolving Credit Facility was amended to extend the facility two years to 2019. The available capacity under the Corporate Revolving Credit Facility remains at $3,000. There are no borrowings outstanding under the facility at March 31, 2014.
NOTE 21 OTHER LIABILITIES
At March 31, | At December 31, | |||||||
2014 | 2013 | |||||||
Other current liabilities: |
||||||||
Refinery metal payable |
$ | 947 | $ | 679 | ||||
Accrued operating costs |
156 | 157 | ||||||
Reclamation and remediation liabilities |
96 | 98 | ||||||
Interest |
82 | 74 | ||||||
Deferred income tax |
74 | 74 | ||||||
Accrued capital expenditures |
46 | 72 | ||||||
Royalties |
32 | 58 | ||||||
Derivative instruments |
25 | 36 | ||||||
Holt property royalty |
14 | 15 | ||||||
Taxes other than income and mining |
11 | 6 | ||||||
Other |
49 | 44 | ||||||
|
|
|
|
|||||
$ | 1,532 | $ | 1,313 | |||||
|
|
|
|
|||||
Other long-term liabilities: |
||||||||
Holt property royalty |
$ | 142 | $ | 119 | ||||
Income and mining taxes |
71 | 70 | ||||||
Power supply agreements |
40 | 39 | ||||||
Derivative instruments |
34 | 60 | ||||||
Boddington contingent consideration |
10 | 10 | ||||||
Other |
42 | 44 | ||||||
|
|
|
|
|||||
$ | 339 | $ | 342 | |||||
|
|
|
|
23
NEWMONT MINING CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)
(dollars in millions, except per share, per ounce and per pound amounts)
NOTE 22 CHANGES IN EQUITY
Three Months Ended March 31, |
||||||||
2014 | 2013 | |||||||
Common stock: |
||||||||
At beginning of period |
$ | 789 | $ | 787 | ||||
Redemption of Exchangeable Shares |
8 | | ||||||
Stock based awards |
1 | 1 | ||||||
|
|
|
|
|||||
At end of period |
798 | 788 | ||||||
|
|
|
|
|||||
Additional paid-in capital: |
||||||||
At beginning of period |
8,441 | 8,330 | ||||||
Redemption of Exchangeable Shares |
(8 | ) | | |||||
Stock based awards |
25 | 29 | ||||||
Sale of noncontrolling interests |
| 48 | ||||||
|
|
|
|
|||||
At end of period |
8,458 | 8,407 | ||||||
|
|
|
|
|||||
Accumulated other comprehensive income (loss): |
||||||||
At beginning of period |
(182 | ) | 490 | |||||
Other comprehensive income (loss) |
(23 | ) | (61 | ) | ||||
|
|
|
|
|||||
At end of period |
(205 | ) | 429 | |||||
|
|
|
|
|||||
Retained earnings: |
||||||||
At beginning of period |
945 | 4,166 | ||||||
Net income (loss) attributable to Newmont stockholders |
100 | 314 | ||||||
Dividends Paid |
(77 | ) | (211 | ) | ||||
|
|
|
|
|||||
At end of period |
968 | 4,269 | ||||||
|
|
|
|
|||||
Noncontrolling interests: |
||||||||
At beginning of period |
2,916 | 3,175 | ||||||
Net income (loss) attributable to noncontrolling interests |
(52 | ) | 42 | |||||
Sale of noncontrolling interests, net |
| 15 | ||||||
Other comprehensive income |
(2 | ) | (1 | ) | ||||
|
|
|
|
|||||
At end of period |
2,862 | 3,231 | ||||||
|
|
|
|
|||||
Total equity |
$ | 12,881 | $ | 17,124 | ||||
|
|
|
|
24
NEWMONT MINING CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)
(dollars in millions, except per share, per ounce and per pound amounts)
NOTE 23 RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)
Unrealized gain on marketable securities, net |
Foreign currency translation adjustments |
Pension and other post- retirement benefit adjustments |
Changes in fair value of cash flow hedge instruments |
Total | ||||||||||||||||
December 31, 2013 |
$ | (35 | ) | $ | 145 | $ | (124 | ) | $ | (168 | ) | $ | (182 | ) | ||||||
Change in other comprehensive income (loss) before reclassifications |
(29 | ) | (3 | ) | | 9 | (23 | ) | ||||||||||||
Reclassifications from accumulated other comprehensive income (loss) |
(2 | ) | | 2 | | | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net current-period other comprehensive income (loss) |
(31 | ) | (3 | ) | 2 | 9 | (23 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
March 31, 2014 |
$ | (66 | ) | $ | 142 | $ | (122 | ) | $ | (159 | ) | $ | (205 | ) | ||||||
|
|
|
|
|
|
|
|
|
|
Details about Accumulated Other Comprehensive Income |
Amount Reclassified from Accumulated Other Comprehensive Income (Loss) |
Affected Line Item in the Condensed Consolidated Statement of Income (Loss) | ||||||||
Three Months Ended March 31, 2014 |
Three Months Ended March 31, 2013 |
|||||||||
Marketable securities adjustments: |
||||||||||
Sale of marketable securities |
$ | (4 | ) | $ | | Other income, net | ||||
Impairment of marketable securities |
1 | 4 | Other income, net | |||||||
|
|
|
|
|||||||
Total before tax |
(3 | ) | 4 | |||||||
Tax benefit (expense) |
1 | (1 | ) | |||||||
|
|
|
|
|||||||
Net of tax |
$ | (2 | ) | $ | 3 | |||||
|
|
|
|
|||||||
Pension liability adjustments: |
||||||||||
Amortization, net |
$ | 3 | $ | 8 | (1) | |||||
|
|
|
|
|||||||
Total before tax |
3 | 8 | ||||||||
Tax (expense) benefit |
(1 | ) | (3 | ) | ||||||
|
|
|
|
|||||||
Net of tax |
$ | 2 | $ | 5 | ||||||
|
|
|
|
|||||||
Hedge instruments adjustments: |
||||||||||
Operating cash flow hedges |
$ | (5 | ) | $ | (39 | ) | Costs applicable to sales | |||
Forward starting swap hedges |
5 | 3 | Interest expense, net | |||||||
|
|
|
|
|||||||
Total before tax |
| (36 | ) | |||||||
Tax benefit (expense) |
| 12 | ||||||||
|
|
|
|
|||||||
Net of tax |
$ | | $ | (24 | ) | |||||
|
|
|
|
|||||||
Total reclassifications for the period, net of tax |
$ | | $ | (16 | ) | |||||
|
|
|
|
(1) | This accumulated other comprehensive income (loss) component is included in General and administrative and costs that benefit the inventory/production process. Refer to Note 2 in the Newmont Annual Report on Form 10-K for the year ended December 31, 2013 for information on costs that benefit the inventory/production process. |
25
NEWMONT MINING CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)
(dollars in millions, except per share, per ounce and per pound amounts)
NOTE 24 NET CHANGE IN OPERATING ASSETS AND LIABILITIES
Net cash provided from operations attributable to the net change in operating assets and liabilities is composed of the following:
Three Months Ended March 31, | ||||||||
2014 | 2013 | |||||||
Decrease (increase) in operating assets: |
||||||||
Trade and accounts receivable |
$ | (16 | ) | $ | 115 | |||
Inventories, stockpiles and ore on leach pads |
(182 | ) | (228 | ) | ||||
EGR refinery assets |
(256 | ) | 308 | |||||
Other assets |
(50 | ) | (21 | ) | ||||
Increase (decrease) in operating liabilities: |
||||||||
Accounts payable and other accrued liabilities |
(94 | ) | (144 | ) | ||||
EGR refinery liabilities |
256 | (308 | ) | |||||
Reclamation liabilities |
(8 | ) | (9 | ) | ||||
|
|
|
|
|||||
$ | (350 | ) | $ | (287 | ) | |||
|
|
|
|
NOTE 25 CONDENSED CONSOLIDATING FINANCIAL STATEMENTS
The following Condensed Consolidating Financial Statements are presented to satisfy disclosure requirements of Rule 3-10(e) of Regulation S-X resulting from the inclusion of Newmont USA Limited (Newmont USA), a wholly-owned subsidiary of Newmont, as a co-registrant with Newmont on debt securities issued under a shelf registration statement on Form S-3 filed under the Securities Act of 1933 under which securities of Newmont (including debt securities guaranteed by Newmont USA) may be issued (the Shelf Registration Statement). In accordance with Rule 3-10(e) of Regulation S-X, Newmont USA, as the subsidiary guarantor, is 100% owned by Newmont, the guarantees are full and unconditional, and no other subsidiary of Newmont guaranteed any security issued under the Shelf Registration Statement. There are no restrictions on the ability of Newmont or Newmont USA to obtain funds from its subsidiaries by dividend or loan.
In April 2013, the Company merged one of its subsidiaries into Newmont USA. As a result of the merger, the prior periods presented have been revised to reflect this change as if the transaction had occurred at the beginning of the earliest period presented in accordance with the accounting guidance for business combinations between entities under common control. Additionally, the changes related to the revisions as described in Note 2 have also been included herein.
26
NEWMONT MINING CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)
(dollars in millions, except per share, per ounce and per pound amounts)
Three Months Ended March 31, 2014 | ||||||||||||||||||||
Newmont | ||||||||||||||||||||
Newmont | Mining | |||||||||||||||||||
Mining | Newmont | Other | Corporation | |||||||||||||||||
Condensed Consolidating Statement of Income |
Corporation | USA | Subsidiaries | Eliminations | Consolidated | |||||||||||||||
Sales |
$ | | $ | 500 | $ | 1,264 | $ | | $ | 1,764 | ||||||||||
Costs and expenses |
||||||||||||||||||||
Costs applicable to sales (1) |
| 298 | 785 | | 1,083 | |||||||||||||||
Amortization |
1 | 54 | 243 | | 298 | |||||||||||||||
Reclamation and remediation |
| 2 | 18 | | 20 | |||||||||||||||
Exploration |
| 4 | 30 | | 34 | |||||||||||||||
Advanced projects, research and development |
| 11 | 31 | | 42 | |||||||||||||||
General and administrative |
| 19 | 26 | | 45 | |||||||||||||||
Other expense, net |
| 6 | 46 | | 52 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
1 | 394 | 1,179 | | 1,574 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Other income (expense) |
||||||||||||||||||||
Other income, net |
(1 | ) | 60 | (13 | ) | | 46 | |||||||||||||
Interest incomeintercompany |
30 | | 2 | (32 | ) | | ||||||||||||||
Interest expenseintercompany |
(2 | ) | | (30 | ) | 32 | | |||||||||||||
Interest expense, net |
(82 | ) | (1 | ) | (10 | ) | | (93 | ) | |||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
(55 | ) | 59 | (51 | ) | | (47 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Income before income and mining tax and other items |
(56 | ) | 165 | 34 | | 143 | ||||||||||||||
Income and mining tax expense |
29 | (38 | ) | (69 | ) | | (78 | ) | ||||||||||||
Equity income (loss) of affiliates |
127 | (151 | ) | (17 | ) | 41 | | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Income from continuing operations |
100 | (24 | ) | (52 | ) | 41 | 65 | |||||||||||||
Income (loss) from discontinued operations |
| | (17 | ) | | (17 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net income |
100 | (24 | ) | (69 | ) | 41 | 48 | |||||||||||||
Net income attributable to noncontrolling interests |
| | 66 | (14 | ) | 52 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net income attributable to Newmont stockholders |
$ | 100 | $ | (24 | ) | $ | (3 | ) | $ | 27 | $ | 100 | ||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Comprehensive income |
$ | 77 | $ | (22 | ) | $ | (84 | ) | $ | 52 | $ | 23 | ||||||||
Comprehensive income attributable to noncontrolling interests |
| | 65 | (11 | ) | 54 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Comprehensive income attributable to Newmont stockholders |
$ | 77 | $ | (22 | ) | $ | (19 | ) | $ | 41 | $ | 77 | ||||||||
|
|
|
|
|
|
|
|
|
|
(1) | Excludes Amortization and Reclamation and remediation. |
27
NEWMONT MINING CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)
(dollars in millions, except per share, per ounce and per pound amounts)
Three Months Ended March 31, 2013 | ||||||||||||||||||||
Newmont | ||||||||||||||||||||
Newmont | Mining | |||||||||||||||||||
Mining | Newmont | Other | Corporation | |||||||||||||||||
Condensed Consolidating Statement of Income |
Corporation | USA | Subsidiaries | Eliminations | Consolidated | |||||||||||||||
Sales |
$ | | $ | 543 | $ | 1,645 | $ | | $ | 2,188 | ||||||||||
Costs and expenses |
||||||||||||||||||||
Costs applicable to sales (1) |
| 261 | 796 | | 1,057 | |||||||||||||||
Amortization |
| 48 | 219 | | 267 | |||||||||||||||
Reclamation and remediation |
| 2 | 16 | | 18 | |||||||||||||||
Exploration |
| 11 | 48 | | 59 | |||||||||||||||
Advanced projects, research and development |
| 13 | 39 | | 52 | |||||||||||||||
General and administrative |
| 30 | 26 | | 56 | |||||||||||||||
Other expense, net |
| 15 | 85 | | 100 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
| 380 | 1,229 | | 1,609 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Other income (expense) |
||||||||||||||||||||
Other income, net |
| 3 | 23 | | 26 | |||||||||||||||
Interest incomeintercompany |
48 | 7 | 5 | (60 | ) | | ||||||||||||||
Interest expenseintercompany |
(3 | ) | | (57 | ) | 60 | | |||||||||||||
Interest expense, net |
(65 | ) | (2 | ) | 2 | | (65 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
(20 | ) | 8 | (27 | ) | | (39 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Income before income and mining tax and other items |
(20 | ) | 171 | 389 | | 540 | ||||||||||||||
Income and mining tax expense |
7 | (50 | ) | (137 | ) | | (180 | ) | ||||||||||||
Equity income (loss) of affiliates |
327 | 114 | 43 | (488 | ) | (4 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Income from continuing operations |
314 | 235 | 295 | (488 | ) | 356 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net income |
314 | 235 | 295 | (488 | ) | 356 | ||||||||||||||
Net income attributable to noncontrolling interests |
| | (66 | ) | 24 | (42 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net income attributable to Newmont stockholders |
$ | 314 | $ | 235 | $ | 229 | $ | (464 | ) | $ | 314 | |||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Comprehensive income |
$ | 253 | $ | 239 | $ | 188 | $ | (386 | ) | $ | 294 | |||||||||
Comprehensive income attributable to noncontrolling interests |
| | (66 | ) | 25 | (41 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Comprehensive income attributable to Newmont stockholders |
$ | 253 | $ | 239 | $ | 122 | $ | (361 | ) | $ | 253 | |||||||||
|
|
|
|
|
|
|
|
|
|
(1) | Excludes Amortization and Reclamation and remediation. |
28
NEWMONT MINING CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)
(dollars in millions, except per share, per ounce and per pound amounts)
Three Months Ended March 31, 2014 | ||||||||||||||||||||
Newmont | ||||||||||||||||||||
Newmont | Mining | |||||||||||||||||||
Mining | Newmont | Other | Corporation | |||||||||||||||||
Condensed Consolidating Statement of Cash Flows |
Corporation | USA | Subsidiaries | Eliminations | Consolidated | |||||||||||||||
Operating activities: |
||||||||||||||||||||
Net income (loss) |
$ | 100 | $ | (24 | ) | $ | (69 | ) | $ | 41 | $ | 48 | ||||||||
Adjustments |
(120 | ) | 265 | 385 | (45 | ) | 485 | |||||||||||||
Net change in operating assets and liabilities |
(29 | ) | (45 | ) | (276 | ) | | (350 | ) | |||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net cash provided from (used in) continuing operations |
(49 | ) | 196 | 40 | (4 | ) | 183 | |||||||||||||
Net cash used in discontinued operations |
| | (3 | ) | | (3 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net cash provided from (used in) operations |
(49 | ) | 196 | 37 | (4 | ) | 180 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Investing activities: |
||||||||||||||||||||
Additions to property, plant and mine development |
| (84 | ) | (151 | ) | | (235 | ) | ||||||||||||
Acquisitions, net |
| | (28 | ) | | (28 | ) | |||||||||||||
Sale of marketable securities |
25 | | | | 25 | |||||||||||||||
Purchases of marketable securities |
| | (1 | ) | | (1 | ) | |||||||||||||
Proceeds from sale of other assets |
| | 70 | | 70 | |||||||||||||||
Other |
| 3 | (12 | ) | | (9 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net cash used in investing activities |
25 | (81 | ) | (122 | ) | | (178 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Financing activities: |
||||||||||||||||||||
Proceeds from debt, net |
(7 | ) | | 10 | | 3 | ||||||||||||||
Net intercompany borrowings (repayments) |
108 | (219 | ) | 111 | | | ||||||||||||||
Acquisition of noncontrolling interests |
| | (2 | ) | | (2 | ) | |||||||||||||
Dividends paid to common stockholders |
(77 | ) | | (4 | ) | 4 | (77 | ) | ||||||||||||
Other |
| | (4 | ) | | (4 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net cash provided from (used in) financing activities |
24 | (219 | ) | 111 | 4 | (80 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Effect of exchange rate changes on cash |
| | (2 | ) | | (2 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net change in cash and cash equivalents |
| (104 | ) | 24 | | (80 | ) | |||||||||||||
Cash and cash equivalents at beginning of period |
| 428 | 1,127 | | 1,555 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Cash and cash equivalents at end of period |
$ | | $ | 324 | $ | 1,151 | $ | | $ | 1,475 | ||||||||||
|
|
|
|
|
|
|
|
|
|
29
NEWMONT MINING CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)
(dollars in millions, except per share, per ounce and per pound amounts)
Three Months Ended March 31, 2013 | ||||||||||||||||||||
Newmont | ||||||||||||||||||||
Newmont | Mining | |||||||||||||||||||
Mining | Newmont | Other | Corporation | |||||||||||||||||
Condensed Consolidating Statement of Cash Flows |
Corporation | USA | Subsidiaries | Eliminations | Consolidated | |||||||||||||||
Operating activities: |
||||||||||||||||||||
Net income (loss) |
$ | 314 | $ | 235 | $ | 295 | $ | (488 | ) | $ | 356 | |||||||||
Adjustments |
(308 | ) | (33 | ) | 225 | 486 | 370 | |||||||||||||
Net change in operating assets and liabilities |
4 | (186 | ) | (105 | ) | | (287 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net cash provided from (used in) continuing operations |
10 | 16 | 415 | (2 | ) | 439 | ||||||||||||||
Net cash used in discontinued operations |
| | (6 | ) | | (6 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net cash provided from (used in) operations |
10 | 16 | 409 | (2 | ) | 433 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Investing activities: |
||||||||||||||||||||
Additions to property, plant and mine development |
| (105 | ) | (405 | ) | | (510 | ) | ||||||||||||
Acquisitions, net |
| | (8 | ) | | (8 | ) | |||||||||||||
Sale of marketable securities |
| | 1 | | 1 | |||||||||||||||
Purchases of marketable securities |
| | (1 | ) | | (1 | ) | |||||||||||||
Proceeds from sale of other assets |
| | 25 | | 25 | |||||||||||||||
Other |
| | (14 | ) | | (14 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net cash used in investing activities |
| (105 | ) | (402 | ) | | (507 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Financing activities: |
||||||||||||||||||||
Proceeds from debt, net |
| | 80 | | 80 | |||||||||||||||
Net intercompany borrowings (repayments) |
200 | (143 | ) | (57 | ) | | | |||||||||||||
Proceeds from stock issuance, net |
1 | | | | 1 | |||||||||||||||
Sale of noncontrolling interests |
| | 32 | | 32 | |||||||||||||||
Acquisition of noncontrolling interests |
| | (6 | ) | | (6 | ) | |||||||||||||
Dividends paid to common stockholders |
(211 | ) | | (2 | ) | 2 | (211 | ) | ||||||||||||
Other |
| | (1 | ) | | (1 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net cash provided from (used in) financing activities |
(10 | ) | (143 | ) | 46 | 2 | (105 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Effect of exchange rate changes on cash |
| | (4 | ) | | (4 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net change in cash and cash equivalents |
| (232 | ) | 49 | | (183 | ) | |||||||||||||
Cash and cash equivalents at beginning of period |
| 342 | 1,219 | | 1,561 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Cash and cash equivalents at end of period |
$ | | $ | 110 | $ | 1,268 | $ | | $ | 1,378 | ||||||||||
|
|
|
|
|
|
|
|
|
|
30
NEWMONT MINING CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)
(dollars in millions, except per share, per ounce and per pound amounts)
At March 31, 2014 | ||||||||||||||||||||
Newmont | ||||||||||||||||||||
Newmont | Mining | |||||||||||||||||||
Mining | Newmont | Other | Corporation | |||||||||||||||||
Condensed Consolidating Balance Sheet |
Corporation | USA | Subsidiaries | Eliminations | Consolidated | |||||||||||||||
Assets |
||||||||||||||||||||
Cash and cash equivalents |
$ | | $ | 324 | $ | 1,151 | $ | | $ | 1,475 | ||||||||||
Trade receivables |
| 28 | 178 | | 206 | |||||||||||||||
Accounts receivable |
| 23 | 296 | | 319 | |||||||||||||||
Intercompany receivable |
1,925 | 6,131 | 4,618 | (12,674 | ) | | ||||||||||||||
Investments |
| 1 | 82 | | 83 | |||||||||||||||
Inventories |
| 161 | 653 | | 814 | |||||||||||||||
Stockpiles and ore on leach pads |
| 393 | 367 | | 760 | |||||||||||||||
Deferred income tax assets |
3 | 140 | 96 | | 239 | |||||||||||||||
Other current assets |
| 71 | 1,280 | | 1,351 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Current assets |
1,928 | 7,272 | 8,721 | (12,674 | ) | 5,247 | ||||||||||||||
Property, plant and mine development, net |
31 | 3,028 | 11,122 | (43 | ) | 14,138 | ||||||||||||||
Investments |
| 12 | 381 | | 393 | |||||||||||||||
Investments in subsidiaries |
14,187 | 4,354 | 2,855 | (21,396 | ) | | ||||||||||||||
Stockpiles and ore on leach pads |
| 468 | 2,255 | | 2,723 | |||||||||||||||
Deferred income tax assets |
711 | 301 | 926 | (522 | ) | 1,416 | ||||||||||||||
Long-term intercompany receivable |
3,176 | 62 | 377 | (3,615 | ) | | ||||||||||||||
Other long-term assets |
50 | 231 | 600 | | 881 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total assets |
$ | 20,083 | $ | 15,728 | $ | 27,237 | $ | (38,250 | ) | $ | 24,798 | |||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Liabilities |
||||||||||||||||||||
Debt |
$ | 567 | $ | 1 | $ | 47 | $ | | $ | 615 | ||||||||||
Accounts payable |
| 59 | 404 | | 463 | |||||||||||||||
Intercompany payable |
3,636 | 4,519 | 4,519 | (12,674 | ) | | ||||||||||||||
Employee-related benefits |
| 113 | 134 | | 247 | |||||||||||||||
Income and mining taxes |
| 1 | 26 | | 27 | |||||||||||||||
Other current liabilities |
81 | 126 | 1,325 | | 1,532 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Current liabilities |
4,284 | 4,819 | 6,455 | (12,674 | ) | 2,884 | ||||||||||||||
Debt |
5,562 | 7 | 577 | | 6,146 | |||||||||||||||
Reclamation and remediation liabilities |
| 178 | 1,341 | | 1,519 | |||||||||||||||
Deferred income tax liabilities |
| 25 | 1,193 | (522 | ) | 696 | ||||||||||||||
Employee-related benefits |
5 | 171 | 157 | | 333 | |||||||||||||||
Long-term intercompany payable |
213 | | 3,445 | (3,658 | ) | | ||||||||||||||
Other long-term liabilities |
| 20 | 319 | | 339 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total liabilities |
10,064 | 5,220 | 13,487 | (16,854 | ) | 11,917 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Equity |
||||||||||||||||||||
Newmont stockholders equity |
10,019 | 10,508 | 9,183 | (19,691 | ) | 10,019 | ||||||||||||||
Noncontrolling interests |
| | 4,567 | (1,705 | ) | 2,862 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total equity |
10,019 | 10,508 | 13,750 | (21,396 | ) | 12,881 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total liabilities and equity |
$ | 20,083 | $ | 15,728 | $ | 27,237 | $ | (38,250 | ) | $ | 24,798 | |||||||||
|
|
|
|
|
|
|
|
|
|
31
NEWMONT MINING CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)
(dollars in millions, except per share, per ounce and per pound amounts)
At December 31, 2013 | ||||||||||||||||||||
Newmont | ||||||||||||||||||||
Newmont | Mining | |||||||||||||||||||
Mining | Newmont | Other | Corporation | |||||||||||||||||
Condensed Consolidating Balance Sheet |
Corporation | USA | Subsidiaries | Eliminations | Consolidated | |||||||||||||||
Assets |
||||||||||||||||||||
Cash and cash equivalents |
$ | | $ | 428 | $ | 1,127 | $ | | $ | 1,555 | ||||||||||
Trade receivables |
| 21 | 209 | | 230 | |||||||||||||||
Accounts receivable |
| 23 | 229 | | 252 | |||||||||||||||
Intercompany receivable |
1,400 | 6,089 | 5,672 | (13,161 | ) | | ||||||||||||||
Investments |
22 | 1 | 55 | | 78 | |||||||||||||||
Inventories |
| 146 | 571 | | 717 | |||||||||||||||
Stockpiles and ore on leach pads |
| 358 | 447 | | 805 | |||||||||||||||
Deferred income tax assets |
3 | 157 | 86 | | 246 | |||||||||||||||
Other current assets |
| 73 | 933 | | 1,006 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Current assets |
1,425 | 7,296 | 9,329 | (13,161 | ) | 4,889 | ||||||||||||||
Property, plant and mine development, net |
32 | 3,026 | 11,263 | (44 | ) | 14,277 | ||||||||||||||
Investments |
| 7 | 432 | | 439 | |||||||||||||||
Investments in subsidiaries |
13,982 | 5,299 | 2,839 | (22,120 | ) | | ||||||||||||||
Stockpiles and ore on leach pads |
| 512 | 2,168 | | 2,680 | |||||||||||||||
Deferred income tax assets |
694 | 320 | 985 | (526 | ) | 1,473 | ||||||||||||||
Long-term intercompany receivable |
3,204 | 62 | 367 | (3,633 | ) | | ||||||||||||||
Other long-term assets |
46 | 228 | 575 | | 849 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total assets |
$ | 19,383 | $ | 16,750 | $ | 27,958 | $ | (39,484 | ) | $ | 24,607 | |||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Liabilities |
||||||||||||||||||||
Debt |
$ | 561 | $ | 1 | $ | 33 | $ | | $ | 595 | ||||||||||
Accounts payable |
| 80 | 398 | | 478 | |||||||||||||||
Intercompany payable |
3,092 | 5,404 | 4,665 | (13,161 | ) | | ||||||||||||||
Employee-related benefits |
| 175 | 166 | | 341 | |||||||||||||||
Income and mining taxes |
| | 13 | | 13 | |||||||||||||||
Other current liabilities |
71 | 161 | 1,081 | | 1,313 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Current liabilities |
3,724 | 5,821 | 6,356 | (13,161 | ) | 2,740 | ||||||||||||||
Debt |
5,556 | 7 | 582 | | 6,145 | |||||||||||||||
Reclamation and remediation liabilities |
| 176 | 1,337 | | 1,513 | |||||||||||||||
Deferred income tax liabilities |
| 23 | 1,138 | (526 | ) | 635 | ||||||||||||||
Employee-related benefits |
5 | 169 | 149 | | 323 | |||||||||||||||
Long-term intercompany payable |
196 | | 3,481 | (3,677 | ) | | ||||||||||||||
Other long-term liabilities |
| 20 | 322 | | 342 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total liabilities |
9,481 | 6,216 | 13,365 | (17,364 | ) | 11,698 | ||||||||||||||
|
|
|
|
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Equity |
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Newmont stockholders equity |
9,902 | 10,534 | 9,984 | (20,427 | ) | 9,993 | ||||||||||||||
Noncontrolling interests |
| | 4,609 | (1,693 | ) | 2,916 | ||||||||||||||
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Total equity |
9,902 | 10,534 | 14,593 | (22,120 | ) | 12,909 | ||||||||||||||
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Total liabilities and equity |
$ | 19,383 | $ | 16,750 | $ | 27,958 | $ | (39,484 | ) | $ | 24,607 | |||||||||
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32
NEWMONT MINING CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)
(dollars in millions, except per share, per ounce and per pound amounts)
Three Months Ended March 31, 2013 | ||||||||||||||||||||||||||||||||||||||||||||||||
Newmont Mining Corporation | Newmont USA | Other Subsidiaries | Eliminations | |||||||||||||||||||||||||||||||||||||||||||||
Condensed Consolidating |
As Previously Presented |
Change | As Currently Presented |
As Previously Presented |
Change | As Currently Presented |
As Previously Presented |
Change | As Currently Presented |
As Previously Presented |
Change | As Currently Presented |
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Sales |
$ | | $ | | $ | | $ | 488 | $ | 55 | $ | 543 | $ | 1,689 | $ | (44 | ) | $ | 1,645 | $ | | $ | | $ | | |||||||||||||||||||||||
Costs and expenses |
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Costs applicable to sales |
| | | 220 | 41 | 261 | 824 | (28 | ) | 796 | | | | |||||||||||||||||||||||||||||||||||
Amortization |
| | | 40 | 8 | 48 | 227 | (8 | ) | 219 | | | | |||||||||||||||||||||||||||||||||||
Reclamation and remediation |
| | | 2 | | 2 | 16 | | 16 | | | | ||||||||||||||||||||||||||||||||||||
Exploration |
| | | 8 | 3 | 11 | 51 | (3 | ) | 48 | | | | |||||||||||||||||||||||||||||||||||
Advanced projects, research and development |
| | | 12 | 1 | 13 | 40 | (1 | ) | 39 | | | | |||||||||||||||||||||||||||||||||||
General and administrative |
| | | 30 | | 30 | 26 | | 26 | | | | ||||||||||||||||||||||||||||||||||||
Other expense, net |
| | | 16 | (1 | ) | 15 | 84 | 1 | 85 | | | | |||||||||||||||||||||||||||||||||||
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| | | 328 | 52 | 380 | 1,268 | (39 | ) | 1,229 | | | | ||||||||||||||||||||||||||||||||||||
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Other income (expense) |
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Other income, net |
| | | 4 | (1 | ) | 3 | 22 | 1 | 23 | | | | |||||||||||||||||||||||||||||||||||
Interest incomeintercompany |
48 | | 48 | 7 | | 7 | (2 | ) | 7 | 5 | (53 | ) | (7 | ) | (60 | ) | ||||||||||||||||||||||||||||||||
Interest expenseintercompany |
(3 | ) | | (3 | ) | | | | (50 | ) | (7 | ) | (57 | ) | 53 | 7 | 60 | |||||||||||||||||||||||||||||||
Interest expense, net |
(65 | ) | | (65 | ) | (2 | ) | | (2 | ) | 2 | | 2 | | | | ||||||||||||||||||||||||||||||||
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(20 | ) | | (20 | ) | 9 | (1 | ) | 8 | (28 | ) | 1 | (27 | ) | | | | ||||||||||||||||||||||||||||||||
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Income (loss) before income and mining tax and other items |
(20 | ) | | (20 | ) | 169 | 2 | 171 | 393 | (4 | ) | 389 | | | | |||||||||||||||||||||||||||||||||
Income and mining tax benfit (expense) |
7 | | 7 | (50 | ) | | (50 | ) | (138 | ) | 1 | (137 | ) | | | | ||||||||||||||||||||||||||||||||
Equity income (loss) of affiliates |
328 | (1 | ) | 327 | 115 | (1 | ) | 114 | 43 | | 43 | (490 | ) | 2 | (488 | ) | ||||||||||||||||||||||||||||||||
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Income from continuing operations |
315 | (1 | ) | 314 | 234 | 1 | 235 | 298 | (3 | ) | 295 | (490 | ) | 2 | (488 | ) | ||||||||||||||||||||||||||||||||
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Net income |
315 | (1 | ) | 314 | 234 | 1 | 235 | 298 | (3 | ) | 295 | (490 | ) | 2 | (488 | ) | ||||||||||||||||||||||||||||||||
Net income attributable to noncontrolling interests |
| | | | | | (67 | ) | 1 | (66 | ) | 25 | (1 | ) | 24 | |||||||||||||||||||||||||||||||||
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Net income attributable to Newmont stockholders |
$ | 315 | $ | (1 | ) | $ | 314 | $ | 234 | $ | 1 | $ | 235 | $ | 231 | $ | (2 | ) | $ | 229 | $ | (465 | ) | $ | 1 | $ | (464 | ) | ||||||||||||||||||||
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Comprehensive income |
$ | 254 | $ | (1 | ) | $ | 253 | $ | 238 | $ | 1 | $ | 239 | $ | 190 | $ | (2 | ) | $ | 188 | $ | (387 | ) | $ | 1 | $ | (386 | ) | ||||||||||||||||||||
Comprehensive income attributable to noncontrolling interests |
| | | | | | (66 | ) | | (66 | ) | 25 | | 25 | ||||||||||||||||||||||||||||||||||
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Comprehensive income attributable to Newmont stockholders |
$ | 254 | $ | (1 | ) | $ | 253 | $ | 238 | $ | 1 | $ | 239 | $ | 124 | $ | (2 | ) | $ | 122 | $ | (362 | ) | $ | 1 | $ | (361 | ) | ||||||||||||||||||||
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33
NEWMONT MINING CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)
(dollars in millions, except per share, per ounce and per pound amounts)
As of the Three Months Ended March 31, 2013 | ||||||||||||||||||||||||||||||||||||||||||||||||
Newmont Mining Company | Newmont USA | Other Subsidiaries | Eliminations | |||||||||||||||||||||||||||||||||||||||||||||
Condensed Consolidating Statement of Cash Flows |
As Previously Presented |
Change | As Revised | As Previously Presented |
Change | As Revised | As Previously Presented |
Change | As Revised | As Previously Presented |
Change | As Revised | ||||||||||||||||||||||||||||||||||||
Operating activities: |
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Net income (loss) |
$ | 315 | $ | (1 | ) | $ | 314 | $ | 234 | $ | 1 | $ | 235 | $ | 298 | $ | (3 | ) | $ | 295 | $ | (490 | ) | $ | 2 | $ | (488 | ) | ||||||||||||||||||||
Adjustments |
(310 | ) |