Market Overview

Newmont Announces Quarterly Revenue of $2.5 Billion, Cash Flow from Continuing Operations of $578 Million

Share:

This release should be read in conjunction with Newmont's Third Quarter 2012 Form 10-Q filed with the Securities and Exchange Commission on November 1, 2012 (available at www.newmont.com).

DENVER, Nov. 1, 2012 /PRNewswire/ -- Newmont Mining Corporation (NYSE: NEM) ("Newmont" or the "Company") today reported attributable net income from continuing operations of $400 million, or $0.81 per share, down 19% from $493 million, or $1.00 per share in the third quarter of 2011. Results for the third quarter of 2012 compared to the third quarter of 2011 were positively influenced by higher production from Nevada and at Yanacocha. Revenue from product sales also benefited from higher copper prices in the quarter. Results were also impacted by lower production and higher costs at Batu Hijau, (due to planned Phase 6 stripping), as well as previously announced lower ore tonnes and grade mined at Tanami and slightly lower grade at Ahafo due to mine sequencing. In addition, the Company incurred previously announced restructuring and other charges of $48 million. Adjusted net income[1] was $426 million, or $0.86 per share, compared with $635 million, or $1.29 per share, for the prior year quarter.

Quarterly Results

  • Consolidated revenue of $2.5 billion, a decrease of 10% from the prior year quarter;
  • Average realized gold and copper price of $1,659 per ounce and $3.55 per pound, down 2% and up 21%, respectively, from the prior year quarter;
  • Attributable gold and copper production of 1.2 million ounces and 35 million pounds, down 5% and 38%, respectively, from the prior year quarter; attributable gold and copper sales of 1.2 million ounces and 37 million pounds, down 4% and 27%, respectively, from the prior year quarter;
  • Gold and copper costs applicable to sales ("CAS") of $693 per ounce and $2.38 per pound, up 11% and 116%, respectively, from the prior year quarter;
  • Cash flow from continuing operations of $578 million, down 54% from the prior year quarter; and
  • Fourth quarter gold price-linked dividend payable of $0.35 per share, consistent with the prior year quarter.

"Balanced performance from our operating portfolio allowed us to deliver results that were on track with our expectations for the quarter with strong performances at both our Nevada complex in North America and Yanacocha in Peru offset by weaker performance in our Asia Pacific region, primarily at Boddington and Tanami in Australia," said Richard O'Brien, Chief Executive Officer.  "We are also seeing clear progress on our commitment to deliver profitable ounces from new projects including our Akyem project in Ghana, which is 65% complete and proceeding on budget and on schedule to begin production in late 2013, and in Nevada where our Emigrant mine commenced production this quarter."

Newmont now expects to be at the low end of its previously announced 2012 outlook for attributable gold and copper production of 5.0 to 5.1 million ounces and 145 to 165 million pounds, and at the high end of its narrower CAS outlook range of between $650 and $675 per ounce (on a co-product basis), due to previously announced issues at Tanami, Boddington and Waihi.  Newmont also increased its 2012 copper CAS outlook range to between $2.20 and $2.35 per pound, primarily due to higher cost production from Boddington and Batu Hijau in Indonesia. 

Newmont is maintaining its 2012 attributable capital expenditure outlook of $2.7 to $3.0 billion, or $3.0 to $3.3 billion on a consolidated basis. 

As previously announced, Newmont's Board of Directors approved a fourth quarter gold price-linked dividend payable of $0.35 per share[2] based upon the average London P.M. Gold Fix for the third quarter. 

Operations

North America

Nevada – Attributable gold production in Nevada was 457,000 ounces at CAS of $661 per ounce during the third quarter. Gold production increased 7% from the prior year quarter due to higher mill grade at the Carlin Roaster, higher recovery at Mill 5 and higher leach placement as Emigrant commenced production, partially offset by lower grade at Phoenix. CAS per ounce increased 3% due to higher fuel prices, higher underground mining costs and lower capitalization of development costs, partially offset by higher by-product credits.

The Company is narrowing its outlook for 2012 attributable gold production of between 1.76 million and 1.78 million ounces at CAS of between $615 and $645 per ounce.

La Herradura – Attributable gold production at La Herradura in Mexico was 51,000 ounces at CAS of $608 per ounce during the third quarter.  Gold production decreased 6% from the prior year quarter due to smelter adjustments, partially offset by additional leach placement. Leach placement was higher due to additional tons mined at Noche Buena. CAS per ounce increased 6% due to higher waste mining and employee profit sharing costs.

The Company is maintaining its outlook for 2012 attributable gold production of between 220,000 and 230,000 ounces at a higher CAS of between $585 and $615 per ounce, due to the expectation of mining lower grade material at Soledad and Dipolos due to mine sequencing.

South America

Yanacocha – Attributable gold production at Yanacocha in Peru was 182,000 ounces at CAS of $520 per ounce during the third quarter. Gold production increased 8% from the prior year quarter due to higher mill and leach pad recovery, partially offset by lower leach placement at Yanacocha, Carachugo and La Quinua. CAS per ounce decreased 15% due to higher production and lower mining costs, partially offset by higher royalties and lower by-product credits.

The Company is narrowing its outlook for 2012 attributable gold production to between 680,000 and 690,000 ounces at CAS of between $485 and $515 per ounce.

La Zanja – Attributable gold production during the third quarter at La Zanja in Peru was approximately 14,000 ounces. 

The Company is maintaining its outlook for 2012 attributable gold production of between 50,000 and 60,000 ounces.

Asia Pacific

Boddington – Attributable gold and copper production during the third quarter at Boddington in Australia was 166,000 ounces and 16 million pounds, respectively, at CAS of $928 per ounce and $2.29 per pound, respectively.  Gold and copper production increased 1% and 7%, respectively, from the prior year quarter due to higher mill grade. Gold CAS per ounce increased 25% from the prior year quarter due to higher mill maintenance costs and the impact of the carbon tax, which took effect in July 2012. Copper CAS increased 2% per pound due to higher mill maintenance costs, partially offset by higher copper production. CAS per ounce and per pound were also impacted by a stronger Australian dollar, net of hedging gains.

The Company is reducing its outlook for 2012 attributable gold production to between 725,000 and 750,000 ounces due to unplanned mill downtime, at a higher CAS of between $865 and $895 per ounce due to higher mill maintenance costs. The Company is maintaining its outlook for attributable copper production of between 70 and 80 million pounds at a slightly higher CAS of between $2.25 and $2.40 per pound, due to higher mill maintenance costs.

Batu Hijau – Attributable gold and copper production during the third quarter at Batu Hijau in Indonesia was 7,000 ounces and 19 million pounds, respectively, at CAS of $1,115 per ounce and $2.38 per pound, respectively. Gold and copper production decreased 89% and 54%, respectively, due to processing lower grade stockpile ore. Waste tons mined increased 57% from the prior year quarter as Phase 6 waste removal continues as planned. CAS increased 134% per ounce and 164% per pound, respectively, due to lower production and higher waste mining costs.

The Company is maintaining its outlook for 2012 attributable gold production of between 30,000 and 40,000 ounces of gold at a higher CAS of between $955 and $985 per ounce, due to higher waste mining costs. The Company is maintaining its outlook for attributable copper production of 75 to 85 million pounds at a slightly higher CAS of between $2.15 and $2.30 per pound, due to higher waste mining costs. 

Other Australia/New Zealand – Attributable gold production during the third quarter was 222,000 ounces at CAS of $931 per ounce. Gold production decreased 14% from the prior year quarter due to lower underground mining rates at Tanami, a delay in open pit ore production at Waihi and lower grade at Jundee and Kalgoorlie, partially offset by higher throughput at Jundee and higher grade at Tanami. CAS per ounce increased 36% from the prior year quarter due to lower production, higher operating costs, a stronger Australian dollar, net of hedging gains and the impact of the carbon tax in Australia.

The Company is reducing its outlook for 2012 attributable gold production to between 935,000 and 960,000 ounces due to continued lower tonnes mined at Tanami and Waihi, at a higher CAS of between $885 and $915 per ounce due to lower production.

Africa

Ahafo – Attributable gold production during the third quarter at Ahafo in Ghana was 131,000 ounces at CAS of $561 per ounce. Gold production decreased 10% from the prior year quarter due to lower ore grade, partially offset by higher throughput and a drawdown of in-process inventory. CAS per ounce increased 12% from the prior year quarter due to lower production and higher labor costs, partially offset by lower power and mill maintenance costs.

The Company is maintaining its outlook for 2012 attributable gold production of between 555,000 to 570,000 ounces and narrowing its expected range of CAS to between $560 and $590 per ounce.

Capital Update

Consolidated capital expenditures were $811 million during the third quarter. Capital expenditures in North America were primarily related to the construction of the Phoenix secondary crusher and development of the Emigrant mine. Capital expenditures in South America were primarily related to the Conga and Merian projects, and the majority of capital expenditures in Asia Pacific were for surface and underground development. Capital expenditures in Africa were primarily related to the Akyem project. For the remainder of the year, 50% of 2012 consolidated capital expenditures are expected to be associated with major projects, while the remaining 50% is expected to be sustaining capital. Newmont is maintaining its 2012 attributable capital expenditure outlook to $2.7 to $3.0 billion, or $3.3 to $3.6 billion on a consolidated basis.

2012 Outlook





Attributable Production

Consolidated CAS

Consolidated Capital

Attributable Capital

Region

(Kozs, Mlbs)

($/oz, $/lb)

Expenditures ($M)

Expenditures ($M)











Nevada

1,760 - 1,780

$615 - $645

$750 - $800

$750 - $800

La Herradura 

220 - 230

$585 - $615

$80 - $130

$80 - $130

  North America

1,980 - 2,010

$615 - $645

$850 - $900

$850 - $900

Yanacocha

680 - 690

$485 - $515

$530 - $580

$270 - $310

La Zanja

50 - 60

n/a

-

-

Conga

-

-

$500 - $600

$250 - $300

  South America

730 - 750

$485 - $515

$1,100 - $1,200

$550 - $600

Boddington

725 - 750

$865 - $895

$150 - $200

$150 - $200

Other Australia/NZ  

935 - 960

$885 - $915

$325 - $375

$325 - $375

Batu Hijaud

30 - 40

$955 - $985

$200 - $225

$100 - $125

  Asia Pacific

1,690 - 1,750

$870 - $900

$700 - $800

$600 - $700

Ahafo

555 - 570

$560 - $590

$240 - $270

$240 - $270

Akyem

-

-

$370 - $420

$370 - $420

  Africa

555 - 570

$560 -$590

$600 - $700

$600 - $700

Corporate/Other

-

-

$55 - $65

$55 - $65

Total Gold

5,000 - 5,100

$650 - $675 a,b

$3,300 - $3,600 c

$2,700 - $3,000

Boddington 

70 - 80

$2.25 - $2.40

-

-

Batu Hijaud

75 - 85

$2.15 - $2.30

-

-

Total Copper

145 - 165

$2.20 - $2.35






a 2012 Attributable CAS Outlook is $640 - $690 per ounce.

b 2012 Net Attributable CAS Outlook (inclusive of by-product credits) is $600 - $650 per ounce.

c Includes capitalized interest of approximately $140 million.

d Assumes Batu Hijau economic interest of 48.5% for 2012, subject to final divestiture obligations.


















2012 Outlook and Assumptions



Description

Consolidated Expenses ($M)

Attributable Expenses ($M)







General & Administrative

$200 - $220

$200 - $220

Interest Expense

$240 - $260

$230 - $250

DD&A

$1,050 - $1,080

$890 - $920

Exploration Expense

$370 - $400

$340 - $370

Advanced Projects & R&D

$410 - $440

$350 - $380

Tax Rate

~32%

~32%

Assumptions





Gold Price ($/ounce)

$1,500

$1,500

Copper Price ($/pound)

$3.50

$3.50

Oil Price ($/barrel)

$90

$90

AUD Exchange Rate

$1.00

1.00

 

 

 

NEWMONT MINING CORPORATION



CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(unaudited, in millions except per share)



































Three Months Ended



Nine Months Ended







September 30,



September 30,







2012



2011



2012



2011





























Sales  

$

2,480



$

2,744



$

7,392



$

7,593





























Costs and expenses  

























Costs applicable to sales (1)



1,088





1,008





3,107





2,865



Amortization   



272





270





751





776



Reclamation and remediation  



17





6





49





63



Exploration    



115





104





309





255



Advanced projects, research and development   



74





93





258





247



General and administrative    



51





50





162





145



Other expense, net  



131





36





377





196









1,748





1,567





5,013





4,547

Other income (expense)  

























Other income, net  



52





(76)





121





3



Interest expense, net    



(67)





(65)





(190)





(193)









(15)





(141)





(69)





(190)

Income before income and mining tax and other items  



717





1,036





2,310





2,856

Income and mining tax expense  



(228)





(371)





(746)





(863)

Equity income (loss) of affiliates    



(9)





10





(39)





12

Income from continuing operations    



480





675





1,525





2,005

Loss from discontinued operations  



(33)





-





(104)





(136)

Net income    



447





675





1,421





1,869

Net income attributable to noncontrolling interests  



(80)





(182)





(285)





(475)

Net income attributable to Newmont stockholders    

$

367



$

493



$

1,136



$

1,394





























Net income attributable to Newmont stockholders:  



























Continuing operations    

$

400



$

493



$

1,240



$

1,530





Discontinued operations    



(33)





-





(104)





(136)







$

367



$

493



$

1,136



$

1,394

Income per common share   

























Basic:  



























Continuing operations    

$

0.81



$

1.00



$

2.50



$

3.10





Discontinued operations    



(0.07)





-





(0.21)





(0.28)







$

0.74



$

1.00



$

2.29



$

2.82



Diluted:  



























Continuing operations    

$

0.81



$

0.98



$

2.48



$

3.05





Discontinued operations    



(0.07)





-





(0.21)





(0.27)







$

0.74



$

0.98



$

2.27



$

2.78





























Cash dividends declared per common share    

$

0.35



$

0.30



$

1.05



$

0.65





























(1) Excludes Amortization and Reclamation and remediation.

 

 

NEWMONT MINING CORPORATION







CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS    



(unaudited, in millions)



















Three Months Ended September 30,





Nine Months Ended September 30,





2012



2011





2012



2011

















































Operating activities:



























Net income



$

447



$

675





$

1,421



$

1,869

Adjustments:



























Amortization 





272





270







751





776

Loss from discontinued operations





33





-







104





136

Reclamation and remediation





17





6







49





63

Deferred income taxes 





13





(68)







25





(106)

Stock based compensation and other non-cash benefits





19





18







55





62

Impairment of marketable securities





7





174







39





175

Gain on asset sales, net





(2)





(15)







(12)





(68)

Other operating adjustments and write-downs





43





6







149





102

Net change in operating assets and liabilities





(271)





197







(1,039)





(343)

Net cash provided from continuing operations  





578





1,263







1,542





2,666

Net cash used in discontinued operations  





(4)





(2)







(12)





(4)

Net cash provided from operations  





574





1,261







1,530





2,662

Investing activities:



























Additions to property, plant and mine development 





(816)





(761)







(2,394)





(1,781)

Proceeds from sale of marketable securities





103





19







209





74

Purchases of marketable securities





(13)





(2)







(209)





(17)

Acquisitions, net





-





(10)







(22)





(2,301)

Proceeds from sale of other assets





-





-







13





6

Other  





(11)





6







(48)





(9)

Net cash used in investing activities





(737)





(748)







(2,451)





(4,028)

Financing activities:



























Proceeds from debt, net





-





1,023







3,343





1,798

Repayment of debt  





(15)





(1,113)







(1,956)





(2,086)

Payment of conversion premium on debt





-













(172)





-

Dividends paid to common stockholders  





(174)





(148)







(521)





(321)

Dividends paid to noncontrolling interests





-





-







(3)





(17)

Proceeds from stock issuance, net  





5





27







20





35

Other  





(1)





3







(2)





3

Net cash provided from (used in) financing activities





(185)





(208)







709





(588)

Effect of exchange rate changes on cash  





-





(25)







1





33

Net change in cash and cash equivalents  





(348)





280







(211)





(1,921)

Cash and cash equivalents at beginning of period  





1,897





1,855







1,760





4,056

Cash and cash equivalents at end of period  



$

1,549



$

2,135





$

1,549



$

2,135





























 

 

 

NEWMONT MINING CORPORATION



CONDENSED CONSOLIDATED BALANCE SHEETS

(unaudited, in millions)























At September 30,



At December 31,







2012



2011



ASSETS













Cash and cash equivalents  



$

1,549



$

1,760

Trade receivables  





314





300

Accounts receivable  





470





320

Investments





89





94

Inventories





842





714

Stockpiles and ore on leach pads





720





671

Deferred income tax assets  





251





396

Other current assets





1,089





1,133



Current assets  





5,324





5,388

Property, plant and mine development, net  





17,472





15,881

Investments





1,397





1,472

Stockpiles and ore on leach pads





2,775





2,271

Deferred income tax assets  





1,659





1,605

Other long-term assets





896





857



Total assets  



$

29,523



$

27,474



LIABILITIES













Debt



$

25



$

689

Accounts payable  





612





561

Employee-related benefits  





320





307

Income and mining taxes  





87





250

Other current liabilities





1,527





2,133



Current liabilities  





2,571





3,940

Debt





6,099





3,624

Reclamation and remediation liabilities





1,276





1,169

Deferred income tax liabilities  





2,186





2,147

Employee-related benefits  





479





459

Other long-term liabilities





396





364



Total liabilities  





13,007





11,703

















EQUITY













Common stock  





786





784

Additional paid-in capital  





8,307





8,408

Accumulated other comprehensive income





595





652

Retained earnings  





3,667





3,052

Newmont stockholders' equity  





13,355





12,896

Noncontrolling interests  





3,161





2,875



Total equity 





16,516





15,771



Total liabilities and equity  



$

29,523



$

27,474

















 

 

 Regional Operating Statistics 

 Production Statistics Summary 



















 Three Months Ended September 30, 



 Nine Months Ended September 30, 



2012



2011



2012



2011

 Gold 















 Consolidated ounces produced (thousands): 















   North America 















Nevada

457



426



1,270



1,216

La Herradura

51



54



164



156



508



480



1,434



1,372

   South America 















Yanacocha

354



328



1,110



958

















   Asia Pacific 















Boddington

166



164



508



528

Batu Hijau

16



133



54



276

Other Australia/New Zealand

222



259



694



802



404



556



1,256



1,606

   Africa 















Ahafo

131



146



438



478



1,397



1,510



4,238



4,414

















 Copper 















 Consolidated pounds produced (millions): 















   Asia Pacific 















Boddington

16



15



48



43

Batu Hijau

39



82



124



223



55



97



172



266

















 Gold 















 Attributable ounces produced (thousands): 















   North America 















Nevada

457



426



1,270



1,216

La Herradura

51



54



164



156



508



480



1,434



1,372

   South America 















Yanacocha

182



169



570



492

Other South America Equity Interests

14



19



40



49



196



188



610



541

















   Asia Pacific 















Boddington

166



164



508



528

Batu Hijau

7



65



26



134

Other Australia/New Zealand

222



259



694



802

Other Asia Pacific Equity Interests

7



4



16



12



402



492



1,244



1,476

   Africa 















Ahafo

131



146



438



478



1,237



1,306



3,726



3,867

















 Copper 















 Attributable pounds produced (millions): 















   Asia Pacific 















Boddington

16



15



48



43

Batu Hijau

19



41



60



109



35



56



108



152

















 

 

 

 CAS and Capital Expenditures 





 Three Months Ended
September 30, 



 Nine Months Ended
September 30, 





2012



2011



2012



2011

 Gold 

























Costs Applicable to Sales ($/ounce)(1)

























        North America 

























     Nevada



$

661



$

641



$

661



$

640

     La Herradura





608





575





585





498







655





633





652





624

        South America 

























     Yanacocha





520





610





481





578



























        Asia Pacific 

























     Boddington





928





743





886





657

     Batu Hijau





1,115





476





985





423

     Other Australia/New Zealand





931





684





850





623







937





652





870





597

        Africa 

























     Ahafo





561





501





571





465

   Average 



$

693



$

622



$

664



$

587

   Attributable to Newmont 



$

716



$

628



$

689



$

593

Copper 

























Costs Applicable to Sales ($/pound)(1)

























        Asia Pacific 

























     Boddington



$

2.29



$

2.25



$

2.33



$

2.12

     Batu Hijau





2.38





0.90





2.19





1.01

   Average 



$

2.38



$

1.10



$

2.23



$

1.17

   Attributable to Newmont 



$

2.35



$

1.25



$

2.23



$

1.30

 

(1) Consolidated Costs applicable to sales excludes Amortization and Reclamation and remediation.

































 Three Months Ended September 30, 





 Nine Months Ended September 30, 







2012





2011





2012





2011

Consolidated Capital Expenditures ($ million) 























   North America 

























Nevada



$

150



$

152



$

520



$

380

La Herradura





12





28





41





55

Other North America





9





33





9





74







171





213





570





509

   South America 

























Yanacocha





149





117





392





244

Conga





125





197





467





448







274





314





859





692

   Asia Pacific 

























Boddington





25





47





77





122

Batu Hijau





37





61





98





149

Other Australia/New Zealand





77





78





214





212

Other Asia Pacific





4





4





12





8







143





190





401





491

   Africa 

























Ahafo





68





34





176





71

Akyem





116





60





305





127







184





94





481





198

Corporate and Other





39





5





76





23

 Total - Accrual Basis 



$

811



$

816



$

2,387



$

1,913

 Change in Capital Accrual 





5





(55)





7





(132)

 Total - Cash Basis 



$

816



$

761



$

2,394



$

1,781

 Attributable to Newmont (Accrual Basis) 

$

659



$

632



$

1,919



$

1,500

 

Supplemental Information

Non-GAAP Financial Measures

Non-GAAP financial measures are intended to provide additional information only and do not have any standard meaning prescribed by Generally Accepted Accounting Principles ("GAAP"). These measures should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP.

Reconciliation of Adjusted Net Income to GAAP Net Income

Management uses the non-GAAP financial measure Adjusted net income to evaluate the Company's operating performance, and for planning and forecasting future business operations. The Company believes the use of Adjusted net income allows investors and analysts to compare the results of the continuing operations of the Company and its direct and indirect subsidiaries relating to the production and sale of minerals to similar operating results of other mining companies, by excluding exceptional or unusual items, income or loss from discontinued operations and the permanent impairment of assets, including marketable securities and goodwill. Management's determination of the components of Adjusted net income are evaluated periodically and based, in part, on a review of non-GAAP financial measures used by mining industry analysts.

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

 







Three Months Ended September
30,



Nine Months Ended September
30,







2012 



2011



2012



2011



Net income attributable to Newmont stockholders

$

367



$

493



$

1,136



$

1,394





Loss from discontinued operations   



33





-





104





136





Impairments/asset sales, net



6





142





30





110





Restructuring and other



20





-





20





-





Boddington contingent consideration



-





-





8





-





Fronteer acquisition costs   



-





-





-





18





Income tax benefit from internal restructuring



-





-





-





(65)



 Adjusted net income   

$

426



$

635



$

1,298



$

1,593



 Adjusted net income per share, basic

$

0.86



$

1.29



$

2.62



$

3.23



 Adjusted net income per share, diluted

$

0.85



$

1.26



$

2.60



$

3.17

 

Costs Applicable to Sales per Ounce/Pound

Costs applicable to sales per ounce/pound are non-GAAP financial measures. These measures are calculated by dividing the costs applicable to sales of gold and copper by gold ounces or copper pounds sold, respectively. These measures are calculated on a consistent basis for the periods presented on both a consolidated and attributable to Newmont basis. Attributable costs applicable to sales are based on our economic interest in production from our mines. For operations where we hold less than a 100% economic share in the production, we exclude the share of gold or copper production attributable to the non-controlling interest. We include attributable costs applicable to sales per ounce/pound to provide management, investors and analysts with information with which to compare our performance to other gold producers. Costs applicable to sales per ounce/pound statistics are intended to provide additional information only and do not have any standardized meaning prescribed by GAAP and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP. The measures are not necessarily indicative of operating profit or cash flow from operations as determined under GAAP. Other companies may calculate these measures differently.

Net attributable costs applicable to sales per ounce measures the benefit of copper produced in conjunction with gold, as a credit against the cost of producing gold. A number of other gold producers present their costs net of the contribution from copper and other non-gold sales. We believe that including a measure of this basis provides management, investors and analysts with information with which to compare our performance to other gold producers, and to better assess the overall performance of our business. In addition, this measure provides information to enable investors and analysts to understand the importance of non-gold revenues to our cost structure.

 



 Costs applicable to sales per ounce









Three Months Ended September
30,



Nine Months Ended September
30,









2012



2011



2012



2011

































 Costs applicable to sales:





























Consolidated per financial statements(1)



$

950



$

907



$

2,746



$

2,541





Noncontrolling interests(2)





(99)





(128)





(278)





(333)





Attributable to Newmont



$

851



$

779



$

2,468



$

2,208

































 Gold sold (thousand ounces):























Consolidated





1,370





1,458





4,138





4,327





Noncontrolling interests(2)





(181)





(218)





(554)





(601)





Attributable to Newmont





1,189





1,240





3,584





3,726

































 Costs applicable to sales per ounce:





























Consolidated



$

693



$

622



$

664



$

587





Attributable to Newmont



$

716



$

628



$

689



$

593








(1)Includes by-product credits of $57 and $165 in the third quarter and first nine months of 2012, respectively and $70 and $237 in the third quarter and first nine months of 2011, respectively.



(2)Relates to partners' interests in Batu Hijau and Yanacocha.

 

 



 Costs applicable to sales per pound









Three Months Ended September
30,



Nine Months Ended September
30,









2012



2011



2012



2011

































 Costs applicable to sales:





























Consolidated per financial statements(1)



$

138



$

101



$

361



$

324





Noncontrolling interests(2)





(51)





(37)





(131)





(124)





Attributable to Newmont



$

87



$

64



$

230



$

200

































 Copper sold (million pounds):























Consolidated





58





92





162





276





Noncontrolling interests(2)





(21)





(41)





(59)





(122)





Attributable to Newmont





37





51





103





154

































 Costs applicable to sales per pound:





























Consolidated



$

2.38



$

1.10



$

2.23



$

1.17





Attributable to Newmont



$

2.35



$

1.25



$

2.23



$

1.30








(1)Includes by-product credits of $3 and $8 in the third quarter and first nine months of 2012, respectively and $7 and $23 in the third quarter and first nine months of 2011, respectively.



(2)Relates to partners' interests in Batu Hijau.

 

 



 Net attributable costs applicable to sales per ounce









Three Months Ended September
30,



Nine Months Ended September
30,









2012



2011



2012



2011

































 Attributable costs applicable to sales:





























Gold



$

851



$

779



$

2,468



$

2,208





Copper  





87





64





230





200











938





843





2,698





2,408

































 Copper revenue:





























Consolidated





(206)





(273)





(569)





(991)





Noncontrolling interests(1)





75





119





209





434











(131)





(154)





(360)





(557)



 Net attributable costs applicable to sales



$

807



$

689



$

2,338



$

1,851

































 Attributable gold ounces sold (thousands)





1,189





1,240





3,584





3,726



 Net attributable costs applicable to sales per ounce



$

679



$

556



$

652



$

497








(1)Relates to partners' interests in Batu Hijau.

 

Conference Call Information

A conference call will be held on Friday, November 2, 2012 at 10:00 a.m. Eastern Time (8:00 a.m. Mountain Time); it will also be carried on the Company's website.

Conference Call Details



Dial-In Number

888.566.1822



Intl Dial-In Number

312.470.7116



Leader

John Seaberg



Passcode

Newmont



Replay Number

800-834-5839



Intl Replay Number

203-369-3351



Replay Passcode

2012







Webcast Details



URL

http://services.choruscall.com/links/newmont121102.html









Please download the free Newmont Investor Relations iPad application from the Apple Online App Store, keyword search "Newmont".

Cautionary Statement

This release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended which are intended to be covered by the safe harbor created by such sections and other applicable laws. Such forward-looking statements may include, without limitation: (i) estimates and expectations regarding the Company's strategy and plans; (ii) estimates of future mineral production and sales; (iii) estimates of future operating costs, costs applicable to sales and other costs; (iv) estimates of future capital expenditures and consolidated advanced projects, research and development expenditures; and (v) the Company's exploration pipeline and expectations regarding the development, growth and exploration potential of the Company's projects, including project start dates, ramp up, life, pipeline timelines (including commencement of mining, drilling and stage gate advancement and expansion opportunities) and expected project returns; (vi) potential ounces or tons of reserves, non-reserve mineralization and potential resources; (vii) dividend payments and increases; (viii) future liquidity, cash and balance sheet expectations; and (ix) other financial outlook for the Company's operations and projects. Estimates or expectations of future events or results are based upon certain assumptions, which may prove to be incorrect. Such assumptions, include, but are not limited to: (i) there being no significant change to current geotechnical, metallurgical, hydrological and other physical conditions; (ii) permitting, development, operations and expansion of the Company's projects being consistent with current expectations and mine plans; (iii) political, social and legal developments in any jurisdiction in which the Company operates being consistent with its current expectations; (iv) certain exchange rate assumptions for the Australian dollar to the U.S. dollar, as well as other exchange rates being approximately consistent with current levels; (v) certain price assumptions for gold, copper and oil; (vi) prices for key supplies being approximately consistent with current levels and such supplies otherwise being available on bases consistent with the Company's current expectations; and (vii) the accuracy of our current mineral reserve and mineral resource estimates and exploration information. Where the Company expresses or implies an expectation or belief as to future events or results, such expectation or belief is expressed in good faith and believed to have a reasonable basis. However, such statements are subject to risks, uncertainties and other factors, which could cause actual results to differ materially from future results expressed, projected or implied by the "forward-looking statements". Such risks include, but are not limited to: (i) gold and other metals price volatility; (ii) currency fluctuations; (iii) increased capital and operating costs and scarcity of competition for required labor and supplies; (iv) variances in ore grade or recovery rates from those assumed in mining plans; (v) political and operational risks; (vi) community relations, conflict resolution and outcome of projects or oppositions; and (vii) governmental regulation and judicial outcomes. For a more detailed discussion of such risks and other factors, see the Company's 2011 Annual Report on Form 10-K, filed on February 24, 2012, with the Securities and Exchange Commission, as well as the Company's other SEC filings. The Company does not undertake any obligation to release publicly revisions to any "forward-looking statement," including, without limitation, outlook, to reflect events or circumstances after the date of this news release, or to reflect the occurrence of unanticipated events, except as may be required under applicable securities laws. Investors should not assume that any lack of update to a previously issued "forward-looking statement" constitutes a reaffirmation of that statement. Continued reliance on "forward-looking statements" is at investors' own risk.

[1] Non-GAAP measure.  See page 11 for reconciliation.

[2] Payable on December 28, 2012 to shareholders of record as of December 6, 2012.

SOURCE Newmont Mining Corporation






View Comments and Join the Discussion!