Form 10-Q
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
Form 10-Q
(Mark One)
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þ |
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the Quarterly Period Ended September 30, 2009
or
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o |
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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)
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Delaware
(State or Other Jurisdiction of
Incorporation or Organization)
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84-1611629
(I.R.S. Employer
Identification No.) |
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6363 South Fiddlers Green Circle
Greenwood Village, Colorado
(Address of Principal Executive Offices)
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80111
(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. þ Yes o 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).
þ Yes o 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 definition of accelerated
filer and large accelerated filer in Rule 12-b2 of the Exchange Act. (Check one):
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Large accelerated filer þ
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Accelerated filer o
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Non-accelerated filer o
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Smaller reporting company o |
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(Do not check if a smaller
reporting company) |
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Indicate by check mark whether the registrant is a shell company (as defined in Rule 12-b2 of
the Exchange Act). o Yes þ No
There were 480,405,625 shares of common stock outstanding on October 23, 2009 (and 9,763,091
exchangeable shares).
PART IFINANCIAL INFORMATION
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ITEM 1. |
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FINANCIAL STATEMENTS. |
NEWMONT MINING CORPORATION
CONDENSED
CONSOLIDATED STATEMENTS OF INCOME
(unaudited, in millions except per share)
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Three Months Ended |
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Nine Months Ended |
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September 30, |
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September 30, |
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2009 |
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2008 |
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2009 |
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2008 |
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Revenues |
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Sales gold, net |
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$ |
1,653 |
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$ |
1,281 |
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$ |
4,401 |
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$ |
4,094 |
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Sales copper, net |
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396 |
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90 |
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786 |
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705 |
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2,049 |
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1,371 |
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5,187 |
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4,799 |
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Costs and expenses |
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Costs applicable to sales gold (1) |
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694 |
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692 |
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1,983 |
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1,969 |
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Costs applicable to sales copper (1) |
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71 |
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88 |
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217 |
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342 |
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Amortization |
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199 |
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186 |
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566 |
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548 |
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Accretion (Note 23) |
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8 |
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7 |
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25 |
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23 |
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Exploration |
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55 |
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57 |
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147 |
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154 |
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Advanced projects, research and development (Note 3) |
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27 |
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44 |
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100 |
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113 |
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General and administrative |
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39 |
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37 |
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118 |
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103 |
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Other expense, net (Note 4) |
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67 |
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69 |
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259 |
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249 |
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1,160 |
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1,180 |
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3,415 |
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3,501 |
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Other income (expense) |
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Other income, net (Note 5) |
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25 |
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66 |
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43 |
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100 |
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Interest expense, net |
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(10 |
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(35 |
) |
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(65 |
) |
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(98 |
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15 |
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31 |
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(22 |
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2 |
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Income from continuing operations before income tax and
other items |
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904 |
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222 |
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1,750 |
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1,300 |
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Income tax expense (Note 8) |
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(253 |
) |
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(6 |
) |
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(494 |
) |
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(193 |
) |
Equity loss of affiliates |
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(6 |
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(1 |
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(14 |
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(6 |
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Income from continuing operations |
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645 |
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215 |
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1,242 |
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1,101 |
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Income (loss) from discontinued operations (Note 9) |
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7 |
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(14 |
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17 |
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Net income |
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645 |
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222 |
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1,228 |
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1,118 |
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Net income attributable to noncontrolling interests (Note 10) |
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(257 |
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(31 |
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(489 |
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(291 |
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Net income attributable to Newmont stockholders |
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$ |
388 |
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$ |
191 |
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$ |
739 |
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$ |
827 |
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Net income attributable to Newmont stockholders: |
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Continuing operations |
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$ |
388 |
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$ |
182 |
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$ |
748 |
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$ |
809 |
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Discontinued operations |
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9 |
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(9 |
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18 |
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$ |
388 |
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$ |
191 |
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$ |
739 |
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$ |
827 |
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Income per common share (Note 11) |
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Basic: |
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Continuing operations |
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$ |
0.79 |
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$ |
0.40 |
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$ |
1.54 |
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$ |
1.78 |
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Discontinued operations |
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0.02 |
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(0.02 |
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0.04 |
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$ |
0.79 |
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$ |
0.42 |
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$ |
1.52 |
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$ |
1.82 |
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Diluted: |
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Continuing operations |
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$ |
0.79 |
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$ |
0.40 |
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$ |
1.54 |
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$ |
1.77 |
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Discontinued operations |
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0.02 |
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(0.02 |
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0.04 |
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$ |
0.79 |
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$ |
0.42 |
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$ |
1.52 |
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$ |
1.81 |
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Basic weighted-average common shares outstanding |
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490 |
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454 |
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485 |
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454 |
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Diluted weighted-average common shares outstanding |
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491 |
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455 |
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486 |
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456 |
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Cash dividends declared per common share |
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$ |
0.10 |
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$ |
0.10 |
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$ |
0.30 |
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$ |
0.30 |
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(1) |
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Exclusive of Amortization and Accretion. |
The accompanying notes are an integral part of the condensed consolidated financial statements.
1
NEWMONT MINING CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited, in millions)
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At September 30, |
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At December 31, |
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2009 |
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2008 |
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ASSETS |
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Cash and cash equivalents |
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$ |
3,022 |
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$ |
435 |
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Marketable securities and other short-term investments (Note 17) |
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19 |
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12 |
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Trade receivables |
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280 |
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104 |
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Accounts receivable |
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114 |
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214 |
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Inventories (Note 18) |
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479 |
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507 |
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Stockpiles and ore on leach pads (Note 19) |
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354 |
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290 |
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Deferred income tax assets |
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189 |
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284 |
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Other current assets (Note 20) |
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581 |
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455 |
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Current assets |
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5,038 |
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2,301 |
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Property, plant and mine development, net |
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12,150 |
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10,128 |
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Investments (Note 17) |
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1,069 |
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|
655 |
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Stockpiles and ore on leach pads (Note 19) |
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1,411 |
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1,136 |
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Deferred income tax assets |
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999 |
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1,039 |
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Other long-term assets (Note 20) |
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261 |
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207 |
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Goodwill |
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188 |
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188 |
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Assets of operations held for sale (Note 9) |
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31 |
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73 |
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Total assets |
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$ |
21,147 |
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$ |
15,727 |
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LIABILITIES |
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Current portion of long-term debt (Note 21) |
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$ |
225 |
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$ |
165 |
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Accounts payable |
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338 |
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|
411 |
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Employee-related benefits |
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201 |
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170 |
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Income and mining taxes |
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211 |
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61 |
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Other current liabilities (Note 22) |
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1,226 |
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|
770 |
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Current liabilities |
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2,201 |
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1,577 |
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Long-term debt (Note 21) |
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4,698 |
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|
3,072 |
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Reclamation and remediation liabilities (Note 23) |
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|
724 |
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|
699 |
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Deferred income tax liabilities |
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1,229 |
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|
1,051 |
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Employee-related benefits |
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|
377 |
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|
379 |
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Other long-term liabilities (Note 22) |
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236 |
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252 |
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Liabilities of operations held for sale (Note 9) |
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13 |
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36 |
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Total liabilities |
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9,478 |
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7,066 |
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Commitments and contingencies (Note 27) |
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EQUITY |
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Common stock |
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768 |
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|
709 |
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Additional paid-in capital |
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8,060 |
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|
6,831 |
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Accumulated other comprehensive income (loss) |
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|
454 |
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(253 |
) |
Retained earnings |
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|
641 |
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4 |
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Newmont stockholders equity |
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9,923 |
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|
7,291 |
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Noncontrolling interests |
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1,746 |
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|
1,370 |
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Total equity (Note 13) |
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11,669 |
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|
8,661 |
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Total liabilities and equity |
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$ |
21,147 |
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$ |
15,727 |
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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)
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Nine Months Ended |
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September 30, |
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|
2009 |
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|
2008 |
|
Operating activities: |
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Net income |
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$ |
1,228 |
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$ |
1,118 |
|
Adjustments: |
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Amortization |
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|
566 |
|
|
|
548 |
|
Loss (income) from discontinued operations (Note 9) |
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|
14 |
|
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|
(17 |
) |
Accretion of accumulated reclamation obligations (Note 23) |
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|
34 |
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|
30 |
|
Deferred income taxes |
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|
7 |
|
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(222 |
) |
Impairment of marketable securities (Note 17) |
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|
6 |
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|
90 |
|
Stock based compensation and other benefits |
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|
44 |
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|
38 |
|
Gain on asset sales, net |
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(3 |
) |
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|
(70 |
) |
Reclamation estimate revisions (Note 23) |
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|
74 |
|
Other operating adjustments and write-downs |
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|
77 |
|
|
|
73 |
|
Net change in operating assets and liabilities (Note 24) |
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|
(27 |
) |
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|
(494 |
) |
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|
|
|
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Net cash provided from continuing operations |
|
|
1,946 |
|
|
|
1,168 |
|
Net cash provided from (used in) discontinued operations (Note 9) |
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3 |
|
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|
(105 |
) |
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Net cash provided from operations |
|
|
1,949 |
|
|
|
1,063 |
|
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|
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|
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Investing activities: |
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|
Additions to property, plant and mine development |
|
|
(1,314 |
) |
|
|
(1,350 |
) |
Investments in marketable debt and equity securities |
|
|
|
|
|
|
(18 |
) |
Proceeds from sale of marketable debt and equity securities |
|
|
10 |
|
|
|
50 |
|
Acquisitions, net (Note 14) |
|
|
(766 |
) |
|
|
(325 |
) |
Other |
|
|
(18 |
) |
|
|
26 |
|
|
|
|
|
|
|
|
Net cash used in investing activities of continuing operations |
|
|
(2,088 |
) |
|
|
(1,617 |
) |
Net cash used in investing activities of discontinued operations (Note 9) |
|
|
|
|
|
|
(11 |
) |
|
|
|
|
|
|
|
Net cash used in investing activities |
|
|
(2,088 |
) |
|
|
(1,628 |
) |
|
|
|
|
|
|
|
Financing activities: |
|
|
|
|
|
|
|
|
Proceeds from debt, net |
|
|
4,302 |
|
|
|
2,801 |
|
Repayment of debt |
|
|
(2,604 |
) |
|
|
(2,249 |
) |
Dividends paid to common stockholders |
|
|
(147 |
) |
|
|
(136 |
) |
Dividends paid to noncontrolling interests |
|
|
(115 |
) |
|
|
(247 |
) |
Proceeds from stock issuance, net |
|
|
1,248 |
|
|
|
27 |
|
Change in restricted cash and other |
|
|
5 |
|
|
|
19 |
|
|
|
|
|
|
|
|
Net cash provided from financing activities of continuing operations |
|
|
2,689 |
|
|
|
215 |
|
Net cash used in financing activities of discontinued operations (Note 9) |
|
|
(2 |
) |
|
|
(3 |
) |
|
|
|
|
|
|
|
Net cash provided from financing activities |
|
|
2,687 |
|
|
|
212 |
|
|
|
|
|
|
|
|
Effect of exchange rate changes on cash |
|
|
39 |
|
|
|
(24 |
) |
|
|
|
|
|
|
|
Net change in cash and cash equivalents |
|
|
2,587 |
|
|
|
(377 |
) |
Cash and cash equivalents at beginning of period |
|
|
435 |
|
|
|
1,230 |
|
|
|
|
|
|
|
|
Cash and cash equivalents at end of period |
|
$ |
3,022 |
|
|
$ |
853 |
|
|
|
|
|
|
|
|
The accompanying notes are an integral part of the condensed consolidated financial statements.
3
NEWMONT MINING CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)
(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 Company has evaluated all subsequent events
through October 28, 2009. 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, 2008 included in its Form 8-K, filed September 15, 2009. The year-end balance sheet data was
derived from the audited financial statements, but does not include all disclosures required by
U.S. generally accepted accounting principles (GAAP).
References to A$ refer to Australian currency, C$ to Canadian currency, IDR to
Indonesian currency, NZ$ to New Zealand currency and $ to United States currency.
NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Recently Adopted Accounting Pronouncements
The Accounting Standards Codification
In June 2009, the Financial Accounting Standards Board (FASB) established the FASB
Accounting Standards Codification (ASC) as the single source of authoritative GAAP to be applied
by nongovernmental entities. The ASC is a new structure which took existing accounting
pronouncements and organized them by accounting topic. Relevant authoritative literature issued by
the Securities and Exchange Commission (SEC) and select SEC staff interpretations and
administrative literature was also included in the ASC. All other accounting guidance not included
in the ASC is non-authoritative. The ASC was effective for the Companys interim quarterly period
beginning July 1, 2009. The adoption of the ASC did not have an impact on the Companys
consolidated financial position, results of operations or cash flows.
Subsequent Events
In May 2009, the ASC guidance for subsequent events was updated to establish accounting and
reporting standards for events that occur after the balance sheet date but before financial
statements are issued or are available to be issued. The update sets forth: (i) the period after
the balance sheet date during which management of a reporting entity should evaluate events or
transactions that may occur for potential recognition or disclosure in the financial statements,
(ii) the circumstances under which an entity should recognize events or transactions occurring
after the balance sheet in its financial statements, and (iii) the disclosures that an entity
should make about events or transactions occurring after the balance sheet date in its financial
statements. The Company adopted the updated guidance for the interim period ended June 30, 2009.
The adoption had no impact on the Companys consolidated financial position, results of operations
or cash flows.
Post-Retirement Benefit Plans
In December 2008, the ASC guidance for retirement benefits was updated to expand the
requirements of employers disclosures about post-retirement benefit plan assets in a defined
benefit pension or other post-retirement plan. The objective is to require more detailed
disclosures about employers plan assets, including employers investment strategies, major
categories of plan assets, concentrations of risk within plan assets, and valuation techniques used
to measure the fair value of plan assets. The Company adopted the updated guidance on January 1,
2009. These disclosures are not required for earlier periods that are presented for comparative
purposes.
Equity Method Investments
In November 2008, the ASC guidance for equity method and joint venture investments was updated
to clarify the accounting for certain transactions and impairment considerations involving equity
method investments. The intent is to provide guidance on: (i) determining the initial measurement
of an equity method investment, (ii) recognizing other-than-
temporary impairments of an equity method investment and (iii) accounting for an equity method
investees issuance of shares. The updated guidance was effective for the Companys fiscal year
beginning January 1, 2009 and was applied prospectively. The adoption had no impact on the
Companys consolidated financial position or results of operations.
4
NEWMONT MINING CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)
(dollars in millions, except per share, per ounce and per pound amounts)
Equity-Linked Financial Instruments
In June 2008, the ASC guidance for derivatives and hedging when accounting for contracts in an
entitys own equity was updated to clarify the determination of whether an instrument (or embedded
feature) is indexed to an entitys own stock which would qualify as a scope exception from hedge
accounting. The updated guidance was effective for the Companys fiscal year beginning January 1,
2009. The adoption had no impact on the Companys consolidated financial position or results of
operations.
Accounting for Convertible Debt Instruments
In May 2008, the ASC guidance was updated for convertible debt instruments that, by their
stated terms, may be settled in cash (or other assets) upon conversion, including partial cash
settlement, unless the embedded conversion option is required to be separately accounted for as a
derivative. The update requires that the liability and equity components of convertible debt
instruments within the scope be separately accounted for in a manner that reflects the entitys
nonconvertible debt borrowing rate. This requires an allocation of convertible debt proceeds
between the liability component and the embedded conversion option (i.e., the equity component).
The difference between the principal amount of the debt and the amount of the proceeds allocated to
the liability component is reported as a debt discount and subsequently amortized to earnings over
the instruments expected life using the effective interest method. The updated guidance required
retrospective application to all periods presented.
During July 2007, the Company completed an offering of $1,150 convertible senior notes due
2014 and 2017, each in the amount of $575. The 2014 notes, maturing on July 15, 2014, pay interest
semi-annually at a rate of 1.25% per annum, and the 2017 notes, maturing on July 15, 2017, pay
interest semi-annually at a rate of 1.625% per annum. The notes are convertible, at the holders
option, equivalent to a conversion price of $46.21 per share of common stock (24,887,956 shares of
common stock). In connection with the convertible senior notes offering, the Company entered into
convertible note hedge transactions and warrant transactions (Call Spread Transactions). The Call
Spread Transactions included the purchase of call options and the sale of warrants. As a result of
the Call Spread Transactions, the conversion price of $46.21 was effectively increased to $60.27.
At September 30, 2009, the if-converted value did not exceed the principal amounts.
During February 2009, the Company completed an offering of $518 convertible senior notes due
on February 15, 2012. The notes will pay interest semi-annually at a rate of 3.00% per annum. The
notes are convertible, at the holders option, equivalent to a conversion price of $46.25 per share
of common stock (11,189,189 shares of common stock). At September 30, 2009, the if-converted value
did not exceed the principal amount.
The Company recorded the following in the Condensed Consolidated Balance Sheets related to the
convertible senior notes:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At September 30, 2009 |
|
|
At December 31, 2008 |
|
|
|
Convertible Senior Notes Due |
|
|
Convertible Senior Notes Due |
|
|
|
2012 |
|
|
2014 |
|
|
2017 |
|
|
2012 |
|
|
2014 |
|
|
2017 |
|
Additional paid-in capital |
|
$ |
46 |
|
|
$ |
97 |
|
|
$ |
123 |
|
|
$ |
|
|
|
$ |
97 |
|
|
$ |
123 |
|
Principal amount |
|
$ |
518 |
|
|
$ |
575 |
|
|
$ |
575 |
|
|
$ |
|
|
|
$ |
575 |
|
|
$ |
575 |
|
Unamortized debt discount |
|
|
(60 |
) |
|
|
(112 |
) |
|
|
(162 |
) |
|
|
|
|
|
|
(127 |
) |
|
|
(174 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net carrying amount |
|
$ |
458 |
|
|
$ |
463 |
|
|
$ |
413 |
|
|
$ |
|
|
|
$ |
448 |
|
|
$ |
401 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5
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 adopting the updated guidance, the effective interest rates increased by
approximately 5 percentage points to 8.5%, 6.0% and 6.25% for the 2012, 2014 and 2017 notes,
respectively, for the non-cash amortization of the debt discount over the lives of the notes.
Interest expense was increased by $9 which decreased the Companys Income from continuing
operations and Net income by $5 ($0.01 per share) for the three months ended September 30, 2008.
Interest expense was increased by $25 which decreased the Companys Income from continuing
operations and Net income by $16 ($0.03 per share) for the nine months ended September 30, 2008.
Had the update been effective in 2008, the Company would have charged its fourth quarter 2008
dividends to Additional paid-in capital rather than Retained
earnings; therefore the Company made the reclassification in 2009. Cash flows from operations
were not impacted by the adoption of the updated guidance. The impact on the Companys 2009 opening
balance in Retained earnings was as follows:
|
|
|
|
|
|
|
At December 31, |
|
|
|
2008 |
|
Balance before application of updated guidance |
|
$ |
7 |
|
Impact of adoption of updated guidance |
|
|
(31 |
) |
Reclassification of dividends to Additional paid-in capital |
|
|
28 |
|
|
|
|
|
Balance after application of updated guidance |
|
$ |
4 |
|
|
|
|
|
For the three months ended September 30, 2009, the Company recorded $8 and $15 of
interest expense for the contractual interest coupon and amortization of the debt discount,
respectively, related to the convertible senior notes. For the nine months ended September 30,
2009, the Company recorded $22 and $41 of interest expense for the contractual interest coupon and
amortization of the debt discount, respectively, related to the convertible senior notes. The
remaining unamortized debt discount is amortized over the remaining 3, 5 and 8 year periods of the
2012, 2014 and 2017 convertible senior notes, respectively.
Accounting for the Useful Life of Intangible Assets
In April 2008, the ASC guidance for Goodwill and Other Intangibles was updated to amend the
factors that should be considered in developing renewal or extension assumptions used to determine
the useful life of a recognized intangible asset. The intent of this update is to improve the
consistency between the useful life of a recognized intangible asset and the period of expected
cash flows used to measure the fair value of the asset under guidance for business combinations.
The updated guidance was effective for the Companys fiscal year beginning January 1, 2009 and was
applied prospectively to intangible assets acquired after the effective date. The adoption had no
impact on the Companys consolidated financial position, results of operations or cash flows.
Derivative Instruments
In March 2008, the ASC guidance for derivatives and hedging was updated for enhanced
disclosures about how and why an entity uses derivative instruments, how derivative instruments and
the related hedged items are accounted for, and how derivative instruments and the related hedged
items affect an entitys financial position, financial performance and cash flows. The Company
adopted the updated guidance on January 1, 2009. The adoption had no impact on the Companys
consolidated financial position, results of operations or cash flows. See Note 16 for the Companys
derivative instruments disclosure.
Business Combinations
In December 2007, the ASC guidance for business combinations was updated to provide new
guidance for recognizing and measuring identifiable assets and goodwill acquired, liabilities
assumed, and any noncontrolling interest in the acquiree. The updated guidance also provides
disclosure requirements to enable users of the financial statements to evaluate the nature and
financial effects of the business combination. The Company adopted the updated guidance on January
1, 2009 and applied it to the acquisition of the remaining 33.33% interest in the Boddington
project completed on June 25, 2009 (see Note 14).
In April 2009, the guidance was updated to address application issues on initial recognition
and measurement, subsequent measurement and accounting, and disclosure of assets and liabilities
arising from contingencies in a business combination. This update is effective for assets or
liabilities arising from contingencies in business combinations for which the acquisition date is
on or after January 1, 2009. The adoption of the updated guidance did not have any impact on the
Companys acquisition of the remaining 33.33% interest in the Boddington project completed on June
25, 2009 (see Note 14).
6
NEWMONT MINING CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)
(dollars in millions, except per share, per ounce and per pound amounts)
Noncontrolling Interests
In December 2007, the ASC guidance for Noncontrolling Interests was updated to establish
accounting and reporting standards pertaining to: (i) ownership interests in subsidiaries held by
parties other than the parent
(noncontrolling interest), (ii) the amount of net income attributable to the parent and to
the noncontrolling interest, (iii) changes in a parents ownership interest, and (iv) the valuation
of any retained noncontrolling equity investment when a subsidiary is deconsolidated. If a
subsidiary is deconsolidated, any retained noncontrolling equity investment in the former
subsidiary is measured at fair value and a gain or loss is recognized in net income based on such
fair value. For presentation and disclosure purposes, the guidance requires noncontrolling
interests to be classified as a separate component of equity. The Company adopted the updated
guidance on January 1, 2009. Except for presentation changes, the adoption had no impact on the
Companys consolidated financial position, results of operations or cash flows.
Fair Value Accounting
In September 2006, the ASC guidance for fair value measurements and disclosure was updated to
define fair value, establish a framework for measuring fair value, and expand disclosures about
fair value measurements. The Company adopted the updated guidance for assets and liabilities
measured at fair value on a recurring basis on January 1, 2008. In February 2008, the FASB staff
issued an update to the guidance which delayed the effective date for nonfinancial assets and
nonfinancial liabilities that are recognized or disclosed at fair value in the financial statements
on a nonrecurring basis. The Company adopted the updated guidance for the Companys nonfinancial
assets and liabilities measured at fair value on a nonrecurring basis on January 1, 2009.
In April 2009, the guidance was further updated to provide additional guidance on determining
fair value when the volume and level of activity for the asset or liability have significantly
decreased and identifying circumstances that indicate when a transaction is not orderly. In April
2009, the guidance for investments in debt and equity securities was updated to: (i) clarify the
interaction of the factors that should be considered when determining whether a debt security is
other than temporarily impaired, (ii) provide guidance on the amount of an other-than-temporary
impairment recognized for a debt security in earnings and other comprehensive income and (iii)
expand the disclosures required for other-than-temporary impairments for debt and equity
securities. Also in April 2009, the guidance for financial instruments was updated to require
disclosures about the fair value of financial instruments for interim reporting periods of publicly
traded companies as well as in annual financial statements. Adoption of this updated guidance was
required for the Companys interim reporting period beginning April 1, 2009 with early adoption
permitted. The Company adopted the updated guidance for the interim period ended March 31, 2009.
Refer to Note 15 for further details regarding the Companys assets and liabilities measured at
fair value.
Recently Issued Accounting Pronouncements
Fair Value Accounting
In August 2009, the ASC guidance for fair value measurements and disclosure was updated to
further define fair value of liabilities. This update provides clarification for circumstances in
which: (i) a quoted price in an active market for the identical liability is not available, (ii)
the liability has a restriction that prevents its transfer, and (iii) the identical liability is
traded as an asset in an active market in which no adjustments to the quoted price of an asset are
required. The updated guidance is effective for the Companys interim reporting period beginning
October 1, 2009. The Company is evaluating the potential impact of adopting this guidance on the
Companys consolidated financial position, results of operations and cash flows.
Variable Interest Entities
In June 2009, the ASC guidance for consolidation accounting was updated to require an entity
to perform a qualitative analysis to determine whether the enterprises variable interest gives it
a controlling financial interest in a variable interest entity (VIE). This analysis identifies a
primary beneficiary of a VIE as the entity that has both of the following characteristics: (i) the
power to direct the activities of a VIE that most significantly impact the entitys economic
performance and (ii) the obligation to absorb losses or receive benefits from the entity that could
potentially be significant to the VIE. The updated guidance also requires ongoing reassessments of
the primary beneficiary of a VIE. The updated guidance is effective for the Companys fiscal year
beginning January 1, 2010. The Company currently accounts for Nusa Tenggara Partnership (NTP) as
a VIE and is evaluating the potential impact of adopting this guidance on the Companys
consolidated financial position, results of operations and cash flows.
7
NEWMONT MINING CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)
(dollars in millions, except per share, per ounce and per pound amounts)
NOTE 3 ADVANCED PROJECTS, RESEARCH AND DEVELOPMENT
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
Nine Months Ended |
|
|
|
September 30, |
|
|
September 30, |
|
|
|
2009 |
|
|
2008 |
|
|
2009 |
|
|
2008 |
|
Boddington |
|
$ |
11 |
|
|
$ |
1 |
|
|
$ |
24 |
|
|
$ |
3 |
|
Hope Bay |
|
|
2 |
|
|
|
16 |
|
|
|
18 |
|
|
|
29 |
|
Technical and project services |
|
|
6 |
|
|
|
5 |
|
|
|
18 |
|
|
|
15 |
|
Corporate |
|
|
3 |
|
|
|
3 |
|
|
|
10 |
|
|
|
10 |
|
Nevada underground |
|
|
1 |
|
|
|
1 |
|
|
|
9 |
|
|
|
1 |
|
Akyem |
|
|
2 |
|
|
|
2 |
|
|
|
5 |
|
|
|
5 |
|
Fort a la Corne JV |
|
|
|
|
|
|
6 |
|
|
|
1 |
|
|
|
19 |
|
Other |
|
|
2 |
|
|
|
10 |
|
|
|
15 |
|
|
|
31 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
27 |
|
|
$ |
44 |
|
|
$ |
100 |
|
|
$ |
113 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NOTE 4 OTHER EXPENSE, NET
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
Nine Months Ended |
|
|
|
September 30, |
|
|
September 30, |
|
|
|
2009 |
|
|
2008 |
|
|
2009 |
|
|
2008 |
|
Boddington acquisition costs (Note 14) |
|
$ |
|
|
|
$ |
|
|
|
$ |
67 |
|
|
$ |
|
|
Regional administration |
|
|
14 |
|
|
|
10 |
|
|
|
40 |
|
|
|
31 |
|
Community development |
|
|
12 |
|
|
|
15 |
|
|
|
33 |
|
|
|
47 |
|
Western Australia power plant |
|
|
18 |
|
|
|
2 |
|
|
|
27 |
|
|
|
15 |
|
Peruvian royalty |
|
|
8 |
|
|
|
4 |
|
|
|
19 |
|
|
|
15 |
|
Workforce reduction |
|
|
|
|
|
|
|
|
|
|
15 |
|
|
|
|
|
Batu Hijau divestiture |
|
|
3 |
|
|
|
2 |
|
|
|
9 |
|
|
|
7 |
|
Accretion, non-operating (Note 23) |
|
|
3 |
|
|
|
2 |
|
|
|
9 |
|
|
|
7 |
|
World Gold Council dues |
|
|
2 |
|
|
|
3 |
|
|
|
8 |
|
|
|
8 |
|
Reclamation estimate revisions (Note 23) |
|
|
|
|
|
|
13 |
|
|
|
|
|
|
|
74 |
|
Pension settlement loss (Note 6) |
|
|
|
|
|
|
1 |
|
|
|
|
|
|
|
12 |
|
Provision for bad debts |
|
|
|
|
|
|
11 |
|
|
|
|
|
|
|
11 |
|
Other |
|
|
7 |
|
|
|
6 |
|
|
|
32 |
|
|
|
22 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
67 |
|
|
$ |
69 |
|
|
$ |
259 |
|
|
$ |
249 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NOTE 5 OTHER INCOME, NET
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
Nine Months Ended |
|
|
|
September 30, |
|
|
September 30, |
|
|
|
2009 |
|
|
2008 |
|
|
2009 |
|
|
2008 |
|
Canadian Oil Sands Trust income |
|
$ |
7 |
|
|
$ |
36 |
|
|
$ |
16 |
|
|
$ |
91 |
|
Refinery income |
|
|
9 |
|
|
|
2 |
|
|
|
13 |
|
|
|
2 |
|
Interest income |
|
|
2 |
|
|
|
7 |
|
|
|
11 |
|
|
|
24 |
|
Gain on sale of investments, net |
|
|
2 |
|
|
|
19 |
|
|
|
2 |
|
|
|
29 |
|
Foreign currency exchange gains (losses), net |
|
|
2 |
|
|
|
(7 |
) |
|
|
|
|
|
|
(20 |
) |
Gain on sale of exploration property |
|
|
|
|
|
|
32 |
|
|
|
|
|
|
|
32 |
|
Income from development projects, net |
|
|
|
|
|
|
3 |
|
|
|
|
|
|
|
12 |
|
(Loss) gain on ineffective portion of
derivative instruments, net (Note 16) |
|
|
(1 |
) |
|
|
3 |
|
|
|
(5 |
) |
|
|
5 |
|
Impairment of marketable securities (Note 17) |
|
|
|
|
|
|
(34 |
) |
|
|
(6 |
) |
|
|
(90 |
) |
Other |
|
|
4 |
|
|
|
5 |
|
|
|
12 |
|
|
|
15 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
25 |
|
|
$ |
66 |
|
|
$ |
43 |
|
|
$ |
100 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
8
NEWMONT MINING CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)
(dollars in millions, except per share, per ounce and per pound amounts)
NOTE 6 EMPLOYEE PENSION AND OTHER BENEFIT PLANS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
Nine Months Ended |
|
|
|
September 30, |
|
|
September 30, |
|
|
|
2009 |
|
|
2008 |
|
|
2009 |
|
|
2008 |
|
Pension benefit costs, net |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service cost |
|
$ |
5 |
|
|
$ |
4 |
|
|
$ |
14 |
|
|
$ |
12 |
|
Interest cost |
|
|
8 |
|
|
|
7 |
|
|
|
24 |
|
|
|
22 |
|
Expected return on plan assets |
|
|
(8 |
) |
|
|
(7 |
) |
|
|
(22 |
) |
|
|
(21 |
) |
Amortization of prior service cost |
|
|
|
|
|
|
|
|
|
|
1 |
|
|
|
|
|
Amortization of loss |
|
|
4 |
|
|
|
|
|
|
|
11 |
|
|
|
2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
9 |
|
|
$ |
4 |
|
|
$ |
28 |
|
|
$ |
15 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
Nine Months Ended |
|
|
|
September 30, |
|
|
September 30, |
|
|
|
2009 |
|
|
2008 |
|
|
2009 |
|
|
2008 |
|
Other benefit costs, net |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service cost |
|
$ |
1 |
|
|
$ |
|
|
|
$ |
2 |
|
|
$ |
1 |
|
Interest cost |
|
|
1 |
|
|
|
1 |
|
|
|
4 |
|
|
|
3 |
|
Amortization of gain |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
2 |
|
|
$ |
1 |
|
|
$ |
6 |
|
|
$ |
3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months ended September 30, 2009 and 2008, the Company recognized pension
settlement losses of $nil and $1, respectively, related to senior management retirements. For the
nine months ended September 30, 2009 and 2008, the Company recognized pension settlement losses of
$nil and $12, respectively, related to senior management retirements. These costs were recorded in
Other expense, net (see Note 4).
NOTE 7 STOCK BASED COMPENSATION
The Company recognized stock options and other stock based compensation as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
Nine Months Ended |
|
|
|
September 30, |
|
|
September 30, |
|
|
|
2009 |
|
|
2008 |
|
|
2009 |
|
|
2008 |
|
Stock options |
|
$ |
3 |
|
|
$ |
5 |
|
|
$ |
11 |
|
|
$ |
13 |
|
Restricted stock units |
|
|
3 |
|
|
|
|
|
|
|
6 |
|
|
|
|
|
Deferred stock awards |
|
|
2 |
|
|
|
3 |
|
|
|
10 |
|
|
|
8 |
|
Restricted stock awards |
|
|
|
|
|
|
1 |
|
|
|
3 |
|
|
|
4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
8 |
|
|
$ |
9 |
|
|
$ |
30 |
|
|
$ |
25 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months ended September 30, 2009 and 2008, no stock options were granted.
For the nine months ended September 30, 2009 and 2008, 1,157,825 and 1,116,963 stock options,
respectively, were granted at a weighted-average exercise price of $40 and $44, respectively, per
underlying share of the Companys common stock. At September 30, 2009, unrecognized compensation
costs related to unvested stock options was $22. This cost is expected to be recognized over a
weighted-average period of approximately 2.2 years.
For the three months ended September 30, 2009 and 2008, no shares of restricted stock units
were granted. For the nine months ended September 30, 2009 and 2008, 490,273 and 8,927 shares of
restricted stock units, respectively, were granted, at a weighted-average fair market value of $42
and $49, respectively.
No deferred stock awards were granted during the three and nine months ended September 30,
2009, and the three months ended September 30, 2008. For the nine months ended September 30, 2008,
394,095 deferred stock awards were granted at a weighted-average fair market value of $44.
No restricted stock awards were granted during the three and nine months ended September 30,
2009. For the three and nine months ended September 30, 2008, 4,034 and 118,697 shares of
restricted stock, respectively, were granted and issued, at a weighted-average fair market value of
$50 and $49, respectively.
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 8 INCOME TAXES
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 paid the
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 September 30, 2009, the Companys total unrecognized tax
benefit was $120 for uncertain tax positions taken or expected to be taken on tax returns. Of this,
$93 represents the amount of unrecognized tax benefits that, if recognized, would affect the
Companys effective income tax rate. Also included in the balance at September 30, 2009 is $12 of
tax positions that, due to the impact of deferred tax accounting, the potential disallowance of
which would not affect the annual effective tax rate.
In April 2009, the United States Tax Court issued an opinion for Santa Fe Pacific Gold Company
and Subsidiaries (Santa Fe), by and through its successor in interest, Newmont USA Limited, a
member of the Newmont Mining Corporation (Newmont) affiliated group. The Tax Court ruled in favor
of Santa Fe regarding the deductibility of a termination fee that had been paid in 1997 as part of
a merger agreement. At September 30, 2009, Newmont had not been notified by the Commissioner of the
Internal Revenue Service (Commissioner) regarding a decision to appeal the Tax Court Ruling. If
the Commissioner does not file an appeal, the Company will be decreasing its liability and accrued
interest for uncertain income tax positions in the fourth quarter of 2009.
As a result of (i) statute of limitations that expire in the next 12 months in various
jurisdictions, (ii) the effects of the aforementioned closure with respect to the Santa Fe matters
described above and (iii) possible settlements of audit-related issues with taxing authorities in
various jurisdictions, the Company believes that it is reasonably possible that the total amount of
its net unrecognized income tax benefits will decrease by approximately $55 to $87 in the next 12
months.
NOTE 9 DISCONTINUED OPERATIONS
Discontinued operations include the Companys Kori Kollo operation sold in July 2009 and the
royalty portfolio and Pajingo operations, both sold in December 2007.
The Company has reclassified the historical balance sheet amounts and the income statement
results to Assets and Liabilities of operations held for sale on the Condensed Consolidated Balance
Sheets and to Income (loss) from discontinued operations in the Condensed Consolidated Statements
of Income for all periods presented. The Condensed Consolidated Statements of Cash Flows have been
reclassified for assets held for sale and discontinued operations for all periods presented.
The following table details selected financial information included in the Income (loss) from
discontinued operations in the Condensed Consolidated Statements of Income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
Nine Months Ended |
|
|
|
September 30, |
|
|
September 30, |
|
|
|
2009 |
|
|
2008 |
|
|
2009 |
|
|
2008 |
|
Sales gold, net |
|
$ |
|
|
|
$ |
21 |
|
|
$ |
32 |
|
|
$ |
58 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from operations |
|
$ |
|
|
|
$ |
(19 |
) |
|
$ |
1 |
|
|
$ |
(7 |
) |
Loss on impairment |
|
|
|
|
|
|
|
|
|
|
(44 |
) |
|
|
|
|
Gain on sale of royalty portfolio |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5 |
|
Gain on sale of Pajingo assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pre-tax loss |
|
|
|
|
|
|
(19 |
) |
|
|
(43 |
) |
|
|
(1 |
) |
Income tax benefit |
|
|
|
|
|
|
26 |
|
|
|
29 |
|
|
|
18 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from discontinued operations |
|
$ |
|
|
|
$ |
7 |
|
|
$ |
(14 |
) |
|
$ |
17 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10
NEWMONT MINING CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)
(dollars in millions, except per share, per ounce and per pound amounts)
The major classes of Assets and Liabilities of operations held for sale in the Condensed
Consolidated Balance Sheets are as follows:
|
|
|
|
|
|
|
|
|
|
|
At September 30, |
|
|
At December 31, |
|
|
|
2009 |
|
|
2008 |
|
Assets: |
|
|
|
|
|
|
|
|
Accounts receivable |
|
$ |
|
|
|
$ |
9 |
|
Inventories |
|
|
|
|
|
|
12 |
|
Stockpiles and ore on leach pads |
|
|
|
|
|
|
43 |
|
Property, plant and mine development |
|
|
|
|
|
|
4 |
|
Deferred income tax assets |
|
|
31 |
|
|
|
2 |
|
Other assets |
|
|
|
|
|
|
3 |
|
|
|
|
|
|
|
|
Total assets of operations held for sale |
|
$ |
31 |
|
|
$ |
73 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities: |
|
|
|
|
|
|
|
|
Current and long-term debt |
|
$ |
|
|
|
$ |
4 |
|
Accounts payable |
|
|
|
|
|
|
1 |
|
Employee-related benefits |
|
|
|
|
|
|
8 |
|
Reclamation and remediation liabilities |
|
|
|
|
|
|
17 |
|
Other liabilities |
|
|
13 |
|
|
|
6 |
|
|
|
|
|
|
|
|
Total liabilities of operations held for sale |
|
$ |
13 |
|
|
$ |
36 |
|
|
|
|
|
|
|
|
The following table details selected financial information included in Net cash provided
from (used in) discontinued operations, Net cash used in investing activities of discontinued
operations and Net cash used in financing activities of discontinued operations:
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended |
|
|
|
September 30, |
|
|
|
2009 |
|
|
2008 |
|
Net cash provided from (used in) discontinued operations: |
|
|
|
|
|
|
|
|
(Loss) income from discontinued operations |
|
$ |
(14 |
) |
|
$ |
17 |
|
Impairment of assets held for sale |
|
|
44 |
|
|
|
|
|
Write-down of inventory |
|
|
7 |
|
|
|
|
|
Amortization |
|
|
3 |
|
|
|
7 |
|
Deferred income taxes |
|
|
(30 |
) |
|
|
(1 |
) |
Other operating adjustments |
|
|
1 |
|
|
|
15 |
|
Decrease in net operating liabilities |
|
|
(8 |
) |
|
|
(143 |
) |
|
|
|
|
|
|
|
|
|
$ |
3 |
|
|
$ |
(105 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash used in investing activities of discontinued operations: |
|
|
|
|
|
|
|
|
Additions to property, plant and mine development |
|
$ |
|
|
|
$ |
(5 |
) |
Proceeds from asset sales, net |
|
|
|
|
|
|
(6 |
) |
|
|
|
|
|
|
|
|
|
$ |
|
|
|
$ |
(11 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash used in financing activities of discontinued operations: |
|
|
|
|
|
|
|
|
Repayment of debt |
|
$ |
(2 |
) |
|
$ |
(3 |
) |
|
|
|
|
|
|
|
|
|
$ |
(2 |
) |
|
$ |
(3 |
) |
|
|
|
|
|
|
|
NOTE 10 NONCONTROLLING INTERESTS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
Nine Months Ended |
|
|
|
September 30, |
|
|
September 30, |
|
|
|
2009 |
|
|
2008 |
|
|
2009 |
|
|
2008 |
|
Batu Hijau |
|
$ |
156 |
|
|
$ |
(17 |
) |
|
$ |
248 |
|
|
$ |
103 |
|
Yanacocha |
|
|
99 |
|
|
|
49 |
|
|
|
243 |
|
|
|
188 |
|
Other |
|
|
2 |
|
|
|
(1 |
) |
|
|
(2 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
257 |
|
|
$ |
31 |
|
|
$ |
489 |
|
|
$ |
291 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
11
NEWMONT MINING CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)
(dollars in millions, except per share, per ounce and per pound amounts)
Newmont currently has a 45% ownership interest in Batu Hijau, held through NTP with an
affiliate of Sumitomo Corporation of Japan (Sumitomo). Newmont has a 56.25% interest in NTP and
the Sumitomo affiliate holds the
remaining 43.75%. NTP in turn owns 80% of P.T. Newmont Nusa Tenggara (PTNNT), the Indonesian
subsidiary that operates the Batu Hijau mine. Newmont identified NTP as a VIE as a result of
certain capital structures and contractual relationships and has fully consolidated Batu Hijau in
its consolidated financial statements since January 1, 2004. The remaining 20% interest in PTNNT is
owned by P.T. Pukuafu Indah (PTPI), an unrelated Indonesian company. NTPs interest in PTNNT was
the subject of an international arbitration proceeding and a final award concerning PTNNTs
interest was issued by the arbitration panel on March 31, 2009. For further information concerning
the arbitration award, see Note 27.
Newmont has a 51.35% ownership interest in Yanacocha, with the remaining interests held by
Compañia de Minas Buenaventura, S.A.A. (43.65%) and the International Finance Corporation (5%).
In April 2008, the Company purchased 15,960 additional shares of European Gold Refineries SA
joint venture (EGR) for $11 in cash increasing its ownership interest to 56.67% from 46.72%. The
acquisition of the additional interest resulted in the consolidation of EGR. In November 2008, EGR
repurchased 6.55% of its own shares from a minority shareholder bringing Newmonts ownership to
60.64%. Swiss residents hold the remaining 39.36%. Prior to consolidation, the Company accounted
for EGR using the equity method of accounting.
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 to basic income per common share except that the
denominator is increased to include the number of additional common shares that would have been
outstanding if the potentially dilutive common shares had been issued.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
Nine Months Ended |
|
|
|
September 30, |
|
|
September 30, |
|
|
|
2009 |
|
|
2008 |
|
|
2009 |
|
|
2008 |
|
Numerator: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to Newmont stockholders |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing operations |
|
$ |
388 |
|
|
$ |
182 |
|
|
$ |
748 |
|
|
$ |
809 |
|
Discontinued operations |
|
|
|
|
|
|
9 |
|
|
|
(9 |
) |
|
|
18 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
388 |
|
|
$ |
191 |
|
|
$ |
739 |
|
|
$ |
827 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Denominator: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
490 |
|
|
|
454 |
|
|
|
485 |
|
|
|
454 |
|
Effect of employee stock-based awards |
|
|
1 |
|
|
|
1 |
|
|
|
1 |
|
|
|
2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted |
|
|
491 |
|
|
|
455 |
|
|
|
486 |
|
|
|
456 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to Newmont stockholders
per common share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing operations |
|
$ |
0.79 |
|
|
$ |
0.40 |
|
|
$ |
1.54 |
|
|
$ |
1.78 |
|
Discontinued operations |
|
|
|
|
|
|
0.02 |
|
|
|
(0.02 |
) |
|
|
0.04 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
0.79 |
|
|
$ |
0.42 |
|
|
$ |
1.52 |
|
|
$ |
1.82 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing operations |
|
$ |
0.79 |
|
|
$ |
0.40 |
|
|
$ |
1.54 |
|
|
$ |
1.77 |
|
Discontinued operations |
|
|
|
|
|
|
0.02 |
|
|
|
(0.02 |
) |
|
|
0.04 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
0.79 |
|
|
$ |
0.42 |
|
|
$ |
1.52 |
|
|
$ |
1.81 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
In February 2009, the Company completed a public offering of 34,500,000 shares of common
stock at $37 per share for net proceeds of $1,233.
Options to purchase 5.1 million and 1.1 million shares of common stock at average exercise
prices of $46 and $55 were outstanding at September 30, 2009 and 2008, respectively, but were not
included in the computation of diluted weighted average number of common shares because the
exercise prices of the options exceeded the price of the common stock.
12
NEWMONT MINING CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)
(dollars in millions, except per share, per ounce and per pound amounts)
In July 2007 and February 2009, Newmont issued $1,150 and $518, respectively, of convertible
notes that, if converted in the future, would have a potentially dilutive effect on the Companys
stock. Under the indenture for the convertible notes, upon conversion Newmont is required to settle
the principal amount of the convertible notes in cash and may elect to settle the remaining
conversion obligation (stock price in excess of the conversion price) 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 accounting guidance
for earnings per share. Under the net share settlement method, the Company includes the amount of
shares it would take to satisfy the conversion obligation, assuming that all of the convertible
notes are surrendered. The average closing price of the Companys common stock for each of the
periods presented is used as the basis for determining dilution. The average price of the Companys
common stock for all periods presented did not exceed the conversion price of $46.25 and $46.21 for
the notes issued in 2009 and 2007, respectively, and therefore, did not have a dilutive effect on
earnings per share.
In connection with the 2007 convertible senior notes offering, the Company entered into Call
Spread Transactions. These transactions included the purchase of call options and the sale of
warrants. As a result of the Call Spread Transactions, the conversion price of $46.21 was
effectively increased to $60.27. Should the warrant transactions become dilutive to the Companys
earnings per share (i.e. Newmonts share price exceeds $60.27) the underlying shares will be
included in the computation of diluted income per common share.
NOTE 12 COMPREHENSIVE INCOME (LOSS)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
Nine Months Ended |
|
|
|
September 30, |
|
|
September 30, |
|
|
|
2009 |
|
|
2008 |
|
|
2009 |
|
|
2008 |
|
|
Net income |
|
$ |
645 |
|
|
$ |
222 |
|
|
$ |
1,228 |
|
|
$ |
1,118 |
|
Other comprehensive income (loss), net of tax: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized gain (loss) on marketable securities
(Note 17) |
|
|
120 |
|
|
|
(481 |
) |
|
|
312 |
|
|
|
(77 |
) |
Foreign currency translation adjustments |
|
|
118 |
|
|
|
(103 |
) |
|
|
207 |
|
|
|
(120 |
) |
Pension and other benefit liability adjustments |
|
|
3 |
|
|
|
1 |
|
|
|
6 |
|
|
|
9 |
|
Change in fair value of cash flow hedge instruments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net change from periodic revaluations |
|
|
77 |
|
|
|
(106 |
) |
|
|
163 |
|
|
|
(55 |
) |
Net amount reclassified to income |
|
|
(5 |
) |
|
|
(2 |
) |
|
|
19 |
|
|
|
(10 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net unrecognized gain (loss) on derivatives |
|
|
72 |
|
|
|
(108 |
) |
|
|
182 |
|
|
|
(65 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
313 |
|
|
|
(691 |
) |
|
|
707 |
|
|
|
(253 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive income (loss) |
|
$ |
958 |
|
|
$ |
(469 |
) |
|
$ |
1,935 |
|
|
$ |
865 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive income (loss) attributable to: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Newmont stockholders |
|
$ |
700 |
|
|
$ |
(498 |
) |
|
$ |
1,444 |
|
|
$ |
576 |
|
Noncontrolling interests |
|
|
258 |
|
|
|
29 |
|
|
|
491 |
|
|
|
289 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
958 |
|
|
$ |
(469 |
) |
|
$ |
1,935 |
|
|
$ |
865 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 13 CHANGES IN EQUITY
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended |
|
|
|
September 30, |
|
|
|
2009 |
|
|
2008 |
|
Common stock: |
|
|
|
|
|
|
|
|
At beginning of period |
|
$ |
709 |
|
|
$ |
696 |
|
Common stock offering |
|
|
55 |
|
|
|
|
|
Stock based compensation |
|
|
2 |
|
|
|
2 |
|
Shares issued in exchange for exchangeable shares |
|
|
2 |
|
|
|
6 |
|
|
|
|
|
|
|
|
At end of period |
|
|
768 |
|
|
|
704 |
|
|
|
|
|
|
|
|
|
|
Additional paid-in capital: |
|
|
|
|
|
|
|
|
At beginning of period |
|
|
6,831 |
|
|
|
6,916 |
|
Common stock offering |
|
|
1,178 |
|
|
|
|
|
Convertible debt issuance |
|
|
46 |
|
|
|
|
|
Common stock dividends |
|
|
(45 |
) |
|
|
(136 |
) |
Stock based compensation |
|
|
53 |
|
|
|
71 |
|
Shares issued in exchange for exchangeable shares |
|
|
(3 |
) |
|
|
(7 |
) |
|
|
|
|
|
|
|
At end of period |
|
|
8,060 |
|
|
|
6,844 |
|
|
|
|
|
|
|
|
|
|
Accumulated other comprehensive income (loss): |
|
|
|
|
|
|
|
|
At beginning of period |
|
|
(253 |
) |
|
|
957 |
|
Other comprehensive income (loss) (Note 12) |
|
|
707 |
|
|
|
(253 |
) |
|
|
|
|
|
|
|
At end of period |
|
|
454 |
|
|
|
704 |
|
|
|
|
|
|
|
|
|
|
Retained earnings (deficit): |
|
|
|
|
|
|
|
|
At beginning of period |
|
|
4 |
|
|
|
(809 |
) |
Net income attributable to Newmont stockholders |
|
|
739 |
|
|
|
827 |
|
Common stock dividends |
|
|
(102 |
) |
|
|
|
|
|
|
|
|
|
|
|
At end of period |
|
|
641 |
|
|
|
18 |
|
|
|
|
|
|
|
|
|
|
Noncontrolling interests: |
|
|
|
|
|
|
|
|
At beginning of period |
|
|
1,370 |
|
|
|
1,449 |
|
Net income attributable to noncontrolling interests |
|
|
489 |
|
|
|
291 |
|
Dividends paid to noncontrolling interests |
|
|
(115 |
) |
|
|
(247 |
) |
Other comprehensive income (loss) |
|
|
2 |
|
|
|
(2 |
) |
Acquisition of noncontrolling interest in Miramar Mining Corporation |
|
|
|
|
|
|
(39 |
) |
Acquisition of noncontrolling interest in EGR |
|
|
|
|
|
|
24 |
|
|
|
|
|
|
|
|
At end of period |
|
|
1,746 |
|
|
|
1,476 |
|
|
|
|
|
|
|
|
Total equity |
|
$ |
11,669 |
|
|
$ |
9,746 |
|
|
|
|
|
|
|
|
On February 3, 2009, the Company completed a public offering of $518 convertible senior
notes, including notes offered to cover over-allotments, maturing on February 15, 2012 for net
proceeds of $504 after deducting the underwriters discount and expenses of the offering (see Note
21). Additionally, on February 3, 2009, the Company completed a public offering of 34,500,000
shares of common stock, including shares offered to cover over-allotments, at a price of $37 per
share, for net proceeds of $1,233 after deducting the underwriters discount and expenses of the
offering.
NOTE 14 ACQUISITIONS
On June 25, 2009, the Company completed the acquisition of the remaining 33.33% interest in
Boddington from AngloGold Ashanti Australia Limited (AngloGold). The valuation date for the
transaction is January 1, 2009, and closing adjustments were made to reflect Newmonts economic
ownership from that date. Consideration for the acquisition consists of $750 less an $8 closing
adjustment paid in cash at closing, $240 payable in cash and/or Newmont common stock, at the
Companys option, by December 2009, and a contingent royalty capped at $100, equal to 50% of the
average realized operating margin (Revenue less Costs applicable to sales on a by-product basis),
if any, exceeding $600 per ounce, payable quarterly on one-third of gold sales from Boddington.
14
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 summarizes the consideration to acquire the remaining interest in
Boddington:
|
|
|
|
|
Cash |
|
$ |
742 |
|
Cash and/or common shares |
|
|
240 |
|
Contingent consideration (fair value) |
|
|
62 |
|
|
|
|
|
|
|
$ |
1,044 |
|
|
|
|
|
The Company estimates that the fair value of the contingent consideration is
approximately $62, and recognized this as part of the purchase price at the acquisition date.
Amounts are payable under the contingent royalty beginning in the second quarter of 2010. The range
of undiscounted amounts the Company could pay is between $0 and $100. The fair value of the
contingent royalty recognized was estimated by applying the income approach. See Note 15 for a
description of the key inputs used in deriving fair value.
In connection with the acquisition, Newmont incurred transaction costs of $67 (shown in Note
4, Other expense, net), including Australian stamp duties. $14 of these costs were paid at
September 30, 2009. Additionally, in June 2009, Newmont paid $182 to reimburse AngloGold for its
share of capital and other project expenditures from January 1, 2009 to June 25, 2009. The
reimbursement of capital expenditures is included in Property, plant and mine development, net, and
as Additions to property, plant and mine development on the cash flow statement.
The purchase price allocation based on the estimated fair values of assets acquired and
liabilities assumed is as follows:
|
|
|
|
|
Assets: |
|
|
|
|
Cash |
|
$ |
1 |
|
Property, plant and mine development, net |
|
|
1,073 |
|
Inventories and stockpiles |
|
|
7 |
|
Deferred income tax asset |
|
|
28 |
|
Other assets |
|
|
11 |
|
|
|
|
|
|
|
$ |
1,120 |
|
|
|
|
|
Liabilities: |
|
|
|
|
Accrued liabilities |
|
$ |
33 |
|
Reclamation liabilities |
|
|
15 |
|
Deferred income tax liability |
|
|
28 |
|
|
|
|
|
|
|
|
76 |
|
|
|
|
|
Net assets acquired |
|
$ |
1,044 |
|
|
|
|
|
In the first quarter of 2009, La Herradura (of which Newmont owns 44%) purchased a mining
property near its Mexico operation for cash consideration of $11 (Newmonts 44% share).
The pro forma impact of all 2009 acquisitions on Net Income was not material.
In December 2007, the Company purchased approximately 70% of the common shares of Miramar
Mining Corporation (Miramar), which, in addition to the shares previously owned, brought the
Companys interest in Miramar to approximately 78%. During the first quarter of 2008, the Company
completed the acquisition of 100% of Miramar.
NOTE 15 FAIR VALUE ACCOUNTING
Fair value accounting establishes a fair value hierarchy that prioritizes the inputs to
valuation techniques used to measure fair value. The hierarchy gives the highest priority to
unadjusted quoted prices in active markets for identical assets or liabilities (Level 1
measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three
levels of the fair value hierarchy are described below:
|
Level 1 |
|
Unadjusted quoted prices in active markets that are accessible at the
measurement date for identical, unrestricted assets or liabilities; |
|
Level 2 |
|
Quoted prices in markets that are not active, or inputs that are observable,
either directly or indirectly, for substantially the full term of the asset or
liability; and |
|
|
Level 3 |
|
Prices or valuation techniques that require inputs that are both significant
to the fair value measurement and unobservable (supported by little or no market
activity).
|
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 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 September 30, 2009 |
|
|
|
Total |
|
|
Level 1 |
|
|
Level 2 |
|
|
Level 3 |
|
Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash equivalents |
|
$ |
1,733 |
|
|
$ |
1,733 |
|
|
$ |
|
|
|
$ |
|
|
Marketable equity securities |
|
|
1,029 |
|
|
|
1,029 |
|
|
|
|
|
|
|
|
|
Corporate marketable debt securities |
|
|
10 |
|
|
|
10 |
|
|
|
|
|
|
|
|
|
Other marketable debt securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset backed commercial paper |
|
|
18 |
|
|
|
|
|
|
|
|
|
|
|
18 |
|
Auction rate securities |
|
|
5 |
|
|
|
|
|
|
|
|
|
|
|
5 |
|
Trade receivable from provisional
copper and gold concentrate sales, net |
|
|
191 |
|
|
|
191 |
|
|
|
|
|
|
|
|
|
Derivative instruments, net |
|
|
149 |
|
|
|
|
|
|
|
149 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
3,135 |
|
|
$ |
2,963 |
|
|
$ |
149 |
|
|
$ |
23 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
8 5/8% debentures ($100 hedged portion) |
|
$ |
97 |
|
|
$ |
|
|
|
$ |
97 |
|
|
$ |
|
|
Boddington contingent consideration |
|
|
62 |
|
|
|
|
|
|
|
|
|
|
|
62 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
159 |
|
|
$ |
|
|
|
$ |
97 |
|
|
$ |
62 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The Companys cash equivalent instruments are classified within Level 1 of the fair value
hierarchy because they are valued using quoted market prices. The cash equivalent instruments that
are valued based on quoted market prices in active markets are primarily money market securities
and U.S. Treasury securities.
The Companys marketable equity securities are valued using quoted market prices in active
markets and as such are classified within Level 1 of the fair value hierarchy. The fair value of
the marketable equity securities is calculated as the quoted market price of the marketable equity
security multiplied by the quantity of shares held by the Company.
The Companys corporate marketable debt securities are valued using quoted market prices in
active markets and as such are classified within Level 1 of the fair value hierarchy. The Companys
other marketable debt securities include investments in asset backed commercial paper and auction
rate securities. In January 2009, the investments in the Companys asset backed commercial paper
were restructured under court order. The restructuring allowed a return of a portion of the
investment and interest distribution to be made to investors. The Company estimated the fair value
of the asset backed commercial paper using a probability of return to each class of notes
reflective of information reviewed regarding the separate classes of securities. The auction rate
securities are traded in markets that are not active, trade infrequently and have little price
transparency. The Company estimated the fair value of the auction rate securities based on weighted
average risk calculations. The asset backed commercial paper and auction rate securities are
classified within Level 3 of the fair value hierarchy.
The Companys net trade receivable from provisional copper and gold concentrate sales is
valued using quoted market prices based on the forward London Metal Exchange (LME) (copper) and
the London Bullion Market Association P.M. fix (London P.M. fix) (gold) and, as such, is
classified within Level 1 of the fair value hierarchy.
The Companys derivative instruments are valued using pricing models and the Company generally
uses similar models to value similar instruments. Where possible, the Company verifies the values
produced by its pricing models to market prices. Valuation models require a variety of inputs,
including contractual terms, market prices, yield curves, credit spreads, measures of volatility,
and correlations of such inputs. The Companys derivatives trade in liquid markets, and as such,
model inputs can generally be verified and do not involve significant management judgment. Such
instruments are classified within Level 2 of the fair value hierarchy.
16
NEWMONT MINING CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)
(dollars in millions, except per share, per ounce and per pound amounts)
The Company has fixed to floating swap contracts to hedge a portion of the interest rate risk
exposure of its 8 5/8% uncollateralized debentures due May 2011. The hedged portion of the
Companys 8 5/8% debentures are valued using
pricing models which require inputs, including risk-free interest rates and credit spreads.
Because the inputs are derived from observable market data, the hedged portion of the 8 5/8%
debentures is classified within Level 2 of the fair value hierarchy.
The Company has recorded a contingent consideration liability related to the acquisition of
the remaining 33.33% interest in Boddington (Note 14). The value of the contingent consideration
was determined using a valuation model which simulates future gold and copper prices and costs
applicable to sales to estimate fair value. The contingent consideration liability is classified
within Level 3 of the fair value hierarchy.
The table below sets forth a summary of changes in the fair value of the Companys Level 3
financial assets and liabilities for the nine months ended September 30, 2009.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Boddington |
|
|
|
|
|
|
Auction Rate |
|
|
Asset Backed |
|
|
Contingent |
|
|
|
|
|
|
Securities |
|
|
Commercial Paper |
|
|
Consideration |
|
|
Total |
|
Balance at beginning of period |
|
$ |
5 |
|
|
$ |
22 |
|
|
$ |
|
|
|
$ |
27 |
|
Settlements |
|
|
|
|
|
|
(4 |
) |
|
|
|
|
|
|
(4 |
) |
Transfers in |
|
|
|
|
|
|
|
|
|
|
62 |
|
|
|
62 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at end of period |
|
$ |
5 |
|
|
$ |
18 |
|
|
$ |
62 |
|
|
$ |
85 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At September 30, 2009, the assets and liabilities classified within Level 3 of the fair
value hierarchy represent 1% and 39% of the total assets and liabilities measured at fair value,
respectively.
NOTE 16 DERIVATIVE INSTRUMENTS
The Company is exposed to certain financial and market risks relating to its ongoing business
operations. The primary risks managed by using derivative instruments are foreign currency exchange
risk, diesel price risk, and interest rate risk. In accordance with hedge accounting guidance, the
Company designated currency fixed forward and option contracts as cash flow hedges, diesel forward
contracts as cash flow hedges, treasury rate lock contracts as cash flow hedges of proceeds
realized from debt issuances, and interest rate swap contracts as fair value hedges of a fixed-rate
borrowing. All of the derivative instruments were transacted for risk management purposes and
qualify as hedging instruments. The maximum period over which hedged forecasted transactions are
expected to occur is three years.
Cash Flow Hedges
Foreign Currency Contracts
Newmont utilizes foreign currency contracts to reduce the variability of the US dollar amount
of forecasted foreign currency expenditures caused by changes in currency rates. Newmont hedges up
to 80% of the Companys IDR denominated operating expenditures which results in a blended IDR/$
rate realized each period. The hedging instruments are forward purchase contracts with expiration
dates ranging up to one year from the date of issue. The principal hedging objective is reduction
in the volatility of realized period-on-period IDR/$ rates. For the three months ended September
30, 2009 and 2008, the IDR/$ forward purchase contracts reduced Batu Hijau Costs applicable to
sales by $1. For the nine months ended September 30, 2009 and 2008, the IDR/$ forward purchase
contracts increased Batu Hijau Costs applicable to sales by $1 and reduced Batu Hijau Costs
applicable to sales by $2, respectively. At September 30, 2009, the Company has hedged 20% of its
expected remaining 2009 IDR operating expenditures.
The Company hedges up to 85% of the Companys A$ denominated operating expenditures with
forward contracts that have expiration dates ranging up to three years from the date of issue. The
principal hedging objective is reduction in the volatility of realized period-on-period $/A$ rates.
Each month, fixed forward contracts are obtained to hedge 1/36th of the forecasted
monthly A$ operating cost exposure in the rolling three-year hedge period resulting in a blended
$/A$ rate realized. For the three months ended September 30, 2009 and 2008, the A$ operating
hedging instruments reduced Australia/New Zealand Costs applicable to sales by $4 and $nil,
respectively. For the nine months ended September 30, 2009 and 2008, the A$ operating hedging
instruments increased Australia/New Zealand Costs applicable to sales by $21 and reduced
Australia/New Zealand Costs applicable to sales by $5, respectively. At September 30, 2009, the
Company has hedged 78% of its expected remaining 2009 A$ operating expenditures, and 53%, 30% and
9% of its expected 2010, 2011 and 2012 A$ operating expenditures, respectively.
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 Company hedges up to 75% of the Companys NZ$ denominated operating expenditures with
forward contracts that have expiration dates ranging up to two years from the date of issue. The
principal hedging objective is reduction in the volatility of realized period-on-period $/NZ$
rates. Each month, fixed forward contracts are obtained to hedge 1/24th of the
forecasted monthly NZ$ operating cost exposure in the rolling two-year hedge period resulting in a
blended $/NZ$ rate realized. For the three months ended September 30, 2009 and 2008, the NZ$
operating hedging instruments reduced Australia/New Zealand Costs applicable to sales by $nil. For
the nine months ended September 30, 2009 and 2008, the NZ$ operating hedging instruments increased
Australia/New Zealand Costs applicable to sales by $3 and $nil, respectively. At September 30,
2009, the Company has hedged 68% of its expected remaining 2009 NZ$ operating expenditures, and 42%
and 9% of its expected 2010 and 2011 NZ$ operating expenditures, respectively.
The Company hedges up to 95% of the Companys A$ denominated capital expenditures related to
the construction of Boddington. The hedging instruments consist of a series of fixed forward
contracts with expiration dates ranging up to one year from the date of issue. The realized gains
and losses associated with the capital expenditure hedge program will impact Amortization during
future periods in which the Boddington assets are placed into service. At September 30, 2009, the
Company has hedged 33% of its expected remaining A$ denominated Boddington capital expenditures.
All of the foreign currency contracts were 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 recorded in earnings during the period in which the hedged
transaction affects earnings. Gains and losses on the derivative representing hedge ineffectiveness
are recognized in current earnings.
Newmont had the following foreign currency derivative contracts outstanding at September 30,
2009:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expected Maturity Date |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total/ |
|
|
|
2009 |
|
|
2010 |
|
|
2011 |
|
|
2012 |
|
|
Average |
|
IDR Forward Purchase Contracts: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ (millions) |
|
$ |
6 |
|
|
$ |
|
|
|
$ |
|
|
|
$ |
|
|
|
$ |
6 |
|
Average rate (IDR/$) |
|
|
10,584 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10,584 |
|
IDR notional (millions) |
|
|
63,501 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
63,501 |
|
A$ Operating Forward Purchase Contracts: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ (millions) |
|
$ |
118 |
|
|
$ |
489 |
|
|
$ |
275 |
|
|
$ |
61 |
|
|
$ |
943 |
|
Average rate ($/A$) |
|
|
0.77 |
|
|
|
0.76 |
|
|
|
0.72 |
|
|
|
0.73 |
|
|
|
0.75 |
|
A$ notional (millions) |
|
|
154 |
|
|
|
644 |
|
|
|
379 |
|
|
|
83 |
|
|
|
1,260 |
|
NZ$ Operating Forward Purchase Contracts: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ (millions) |
|
$ |
12 |
|
|
$ |
28 |
|
|
$ |
6 |
|
|
$ |
|
|
|
$ |
46 |
|
Average rate ($/NZ$) |
|
|
0.64 |
|
|
|
0.62 |
|
|
|
0.63 |
|
|
|
|
|
|
|
0.63 |
|
NZ$ notional (millions) |
|
|
19 |
|
|
|
46 |
|
|
|
9 |
|
|
|
|
|
|
|
74 |
|
A$ Boddington Capital Forward Purchase Contracts: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ (millions) |
|
$ |
25 |
|
|
$ |
|
|
|
$ |
|
|
|
$ |
|
|
|
$ |
25 |
|
Average rate ($/A$) |
|
|
0.80 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
0.80 |
|
A$ notional (millions) |
|
|
31 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
31 |
|
Diesel Fixed Forward Contracts
Newmont hedges up to 66% of its operating cost exposure related to diesel prices of fuel
consumed at its Nevada operations to reduce the variability in realized diesel prices. The hedging
instruments consist of a series of financially settled fixed forward contracts with expiration
dates of up to two years from the date of issue. For the three months ended September 30, 2009 and
2008, the Nevada diesel hedge program increased Nevada Costs applicable to sales by $2 and $nil,
respectively. For the nine months ended September 30, 2009 and 2008, the Nevada diesel hedge
program increased Nevada Costs applicable to sales by $13 and $nil, respectively. The contracts
have been designated as cash flow hedges of future diesel purchases, and as such, the effective
portion of unrealized changes in the market value have been recorded in Accumulated other
comprehensive income (loss) and are recorded in earnings during the period in which the hedged
transaction affects earnings. Gains and losses from hedge ineffectiveness are recognized in current
earnings. At September 30, 2009, the Company has hedged 64% of its expected remaining 2009 Nevada
diesel expenditures, and 43% and 14% of its expected 2010 and 2011 Nevada diesel expenditures,
respectively.
18
NEWMONT MINING CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)
(dollars in millions, except per share, per ounce and per pound amounts)
Newmont had the following diesel derivative contracts outstanding at September 30, 2009:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expected Maturity Date |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total/ |
|
|
|
2009 |
|
|
2010 |
|
|
2011 |
|
|
Average |
|
Diesel Forward Purchase Contracts: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ (millions) |
|
$ |
12 |
|
|
$ |
33 |
|
|
$ |
9 |
|
|
$ |
54 |
|
Average rate ($/gallon) |
|
|
1.78 |
|
|
|
1.90 |
|
|
|
2.07 |
|
|
|
1.90 |
|
Diesel gallons (millions) |
|
|
7 |
|
|
|
17 |
|
|
|
4 |
|
|
|
28 |
|
Treasury Rate Lock Contracts
In connection with the 2019 and 2039 notes issued in September 2009, Newmont acquired treasury
rate lock contracts to reduce the variability of the proceeds realized from the bond issuances. The
treasury rate locks resulted in $6 and $5 unrealized gains for the 2019 and 2039 notes,
respectively. The Company previously acquired treasury rate locks in connection with the issuance
of the 2035 notes that resulted in a $10 unrealized loss. The gains/losses from these contracts
will be recognized over the terms of the respective notes.
Fair Value Hedges
Interest Rate Swap Contracts
At September 30, 2009, Newmont had $100 fixed to floating swap contracts designated as a hedge
against a portion of its 8 5/8% debentures due 2011. The interest rate swap contracts provide
balance to the Companys mix of fixed and floating rate debt. Under the hedge contract terms, the
Company receives fixed-rate interest payments at 8.625% and pays floating-rate interest amounts
based on periodic London Interbank Offered Rate (LIBOR) settings plus a spread, ranging from
2.60% to 3.49%. The interest rate swap contracts were designated as fair value hedges, and as such,
changes in fair value have been recorded in income in each period, consistent with recording
changes to the mark-to-market value of the underlying hedged liability in income. Changes in the
mark-to-market value of the effective portion of the interest rate swap contracts are recognized as
a component of Interest expense, net. The hedge contracts decreased Interest expense, net by $1 and
$nil for the three months ended September 30, 2009 and 2008, respectively, and decreased Interest
expense, net by $3 and $1 for the nine months ended September 30, 2009 and 2008, respectively. For
the three months ended September 30, 2009 and 2008, losses of $1 and $nil were included in Other
income, net for the ineffective portion of derivative instruments designated as fair value hedges,
respectively. For the nine months ended September 30, 2009 and 2008, losses of $2 and $nil,
respectively, were included in Other income, net for the ineffective portion of derivative
instruments designated as fair value hedges.
19
NEWMONT MINING CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)
(dollars in millions, except per share, per ounce and per pound amounts)
Derivative Instrument Fair Values
Newmont had the following derivative instruments designated as hedges with fair values at
September 30, 2009 and December 31, 2008:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair Values of Derivative Instruments |
|
|
|
At September 30, 2009 |
|
|
|
Other |
|
|
Other |
|
|
Other |
|
|
Other |
|
|
|
Current |
|
|
Long-Term |
|
|
Current |
|
|
Long-Term |
|
|
|
Assets |
|
|
Assets |
|
|
Liabilities |
|
|
Liabilities |
|
Foreign currency exchange contracts: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
IDR operating forward purchase contracts |
|
$ |
1 |
|
|
$ |
|
|
|
$ |
|
|
|
$ |
|
|
NZ$ operating forward contracts |
|
|
5 |
|
|
|
1 |
|
|
|
|
|
|
|
|
|
A$ forward purchase contracts |
|
|
72 |
|
|
|
59 |
|
|
|
|
|
|
|
|
|
Diesel forward contracts |
|
|
2 |
|
|
|
1 |
|
|
|
|
|
|
|
|
|
Interest rate swap contracts |
|
|
2 |
|
|
|
6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total derivative instruments (Notes 20 and 22) |
|
$ |
82 |
|
|
$ |
67 |
|
|
$ |
|
|
|
$ |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair Values of Derivative Instruments |
|
|
|
At December 31, 2008 |
|
|
|
Other |
|
|
Other |
|
|
Other |
|
|
Other |
|
|
|
Current |
|
|
Long-Term |
|
|
Current |
|
|
Long-Term |
|
|
|
Assets |
|
|
Assets |
|
|
Liabilities |
|
|
Liabilities |
|
Foreign currency exchange contracts: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
IDR operating forward purchase contracts |
|
$ |
|
|
|
$ |
|
|
|
$ |
4 |
|
|
$ |
|
|
NZ$ operating forward contracts |
|
|
|
|
|
|
|
|
|
|
5 |
|
|
|
1 |
|
A$ forward purchase contracts |
|
|
3 |
|
|
|
1 |
|
|
|
87 |
|
|
|
42 |
|
A$ call option contracts |
|
|
1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Diesel forward contracts |
|
|
|
|
|
|
|
|
|
|
15 |
|
|
|
|
|
Interest rate swap contracts |
|
|
2 |
|
|
|
7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total derivative instruments (Notes 20 and 22) |
|
$ |
6 |
|
|
$ |
8 |
|
|
$ |
111 |
|
|
$ |
43 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
20
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 Condensed Consolidated Financial Statements related to the Companys cash flow and fair
value hedges and the gains (losses) recorded for the hedged item related to the fair value hedges.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign Currency |
|
|
|
|
|
|
|
|
|
|
Treasury Rate |
|
|
|
Exchange Contracts |
|
|
Diesel Forward Contracts |
|
|
Lock Contracts |
|
|
|
2009 |
|
|
2008 |
|
|
2009 |
|
|
2008 |
|
|
2009 |
|
|
2008 |
|
Cash flow hedging relationships: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months ended September 30, |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain (loss) recognized in other
comprehensive income (effective
portion) |
|
$ |
102 |
|
|
$ |
(148 |
) |
|
$ |
(1 |
) |
|
$ |
(5 |
) |
|
$ |
11 |
|
|
$ |
|
|
Gain (loss) reclassified from
Accumulated other comprehensive
income into income (effective
portion) (1) |
|
|
2 |
|
|
|
2 |
|
|
|
(2 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
104 |
|
|
$ |
(146 |
) |
|
$ |
(3 |
) |
|
$ |
(5 |
) |
|
$ |
11 |
|
|
$ |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the nine months ended September 30, |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain (loss) recognized in other
comprehensive income (effective
portion) |
|
$ |
220 |
|
|
$ |
(74 |
) |
|
$ |
3 |
|
|
$ |
(3 |
) |
|
$ |
11 |
|
|
$ |
|
|
(Loss) gain reclassified from
Accumulated other comprehensive
income into income (effective
portion) (1) |
|
|
(28 |
) |
|
|
8 |
|
|
|
(13 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
192 |
|
|
$ |
(66 |
) |
|
$ |
(10 |
) |
|
$ |
(3 |
) |
|
$ |
11 |
|
|
$ |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
|
The gain (loss) for the effective portion of foreign exchange and diesel cash flow
hedges reclassified from Accumulated other comprehensive income is recorded in Costs
applicable to sales. The gain for the effective portion of treasury rate lock cash flow hedges
reclassified from Accumulated other comprehensive income is recorded in Interest expense, net. |
The amount to be reclassified from Accumulated other comprehensive income (loss), net of
tax to income for derivative instruments during the next 12 months is a gain of approximately $56.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest Rate |
|
|
8 5/8% Debentures |
|
|
|
Swap Contracts |
|
|
(Hedged Portion) |
|
|
|
2009 |
|
|
2008 |
|
|
2009 |
|
|
2008 |
|
Fair value hedging relationships: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months ended September 30, |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain (loss) recognized in income (effective portion) (1) |
|
$ |
1 |
|
|
$ |
|
|
|
$ |
(1 |
) |
|
$ |
(1 |
) |
(Loss) gain
recognized in income (ineffective portion) (2) |
|
|
(1 |
) |
|
|
|
|
|
|
|
|
|
|
3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
|
|
|
$ |
|
|
|
$ |
(1 |
) |
|
$ |
2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the nine months ended September 30, |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain (loss) recognized in income (effective portion) (1) |
|
$ |
3 |
|
|
$ |
1 |
|
|
$ |
(2 |
) |
|
$ |
(2 |
) |
(Loss) gain recognized in income (ineffective portion) (2) |
|
|
(2 |
) |
|
|
|
|
|
|
(3 |
) |
|
|
5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
1 |
|
|
$ |
1 |
|
|
$ |
(5 |
) |
|
$ |
3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
|
The gain (loss) recognized for the effective portion of fair value hedges and the
underlying hedged debt is included in Interest expense, net. |
|
(2) |
|
The ineffective portion recognized for fair value hedges and the underlying hedged
debt is included in Other income, net. |
21
NEWMONT MINING CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)
(dollars in millions, except per share, per ounce and per pound amounts)
Provisional Copper and Gold Sales
LME copper prices averaged $2.65 per pound during the three months ended September 30, 2009,
compared with the Companys recorded average provisional price of $2.73 per pound before
mark-to-market gains and treatment and refining charges. LME copper prices averaged $2.12 per pound
during the nine months ended September 30, 2009, compared with the Companys recorded average
provisional price of $2.23 per pound before mark-to-market gains and treatment and refining
charges. The applicable forward copper price at the end of the quarter was $2.79 per pound. During
the three months ended September 30, 2009, increasing copper prices resulted in a provisional
pricing mark-to-market gain of $48 ($0.34 per pound). During the nine months ended September 30,
2009, changes in copper prices resulted in a provisional pricing mark-to-market gain of $112 ($0.33
per pound). At September 30, 2009, the Company
had copper sales of 140 million pounds priced at an average of $2.79 per pound, subject to
final pricing over the next several months.
The average London P.M. gold fix was $960 per ounce during the three months ended September
30, 2009, compared with the Companys recorded average provisional gold price of $961 per ounce
before mark-to-market gains and treatment and refining charges. The average London P.M. gold fix
was $931 per ounce during the nine months ended September 30, 2009, compared with the Companys
recorded average provisional gold price of $930 per ounce before mark-to-market gains and treatment
and refining charges. The applicable forward gold price at the end of the quarter was $996 per
ounce. During the three months ended September 30, 2009, changes in gold prices resulted in a
provisional pricing mark-to-market gain of $5 ($3 per ounce). During the nine months ended
September 30, 2009, changes in gold prices resulted in a provisional pricing mark-to-market gain of
$6 ($1 per ounce). At September 30, 2009, the Company had gold sales of 96,000 ounces priced at an
average of $996 per ounce, subject to final pricing over the next several months.
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 17 INVESTMENTS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At September 30, 2009 |
|
|
|
Cost/Equity |
|
|
Unrealized |
|
|
Fair/Equity |
|
|
|
Basis |
|
|
Gain |
|
|
Loss |
|
|
Basis |
|
Current: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Marketable Equity Securities |
|
$ |
8 |
|
|
$ |
11 |
|
|
$ |
|
|
|
$ |
19 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-term: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Marketable Debt Securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset backed securities |
|
$ |
25 |
|
|
$ |
|
|
|
$ |
(7 |
) |
|
$ |
18 |
|
Auction rate securities |
|
|
7 |
|
|
|
|
|
|
|
(2 |
) |
|
|
5 |
|
Corporate |
|
|
8 |
|
|
|
2 |
|
|
|
|
|
|
|
10 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
40 |
|
|
|
2 |
|
|
|
(9 |
) |
|
|
33 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Marketable Equity Securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Canadian Oil Sands Trust |
|
|
285 |
|
|
|
593 |
|
|
|
|
|
|
|
878 |
|
Gabriel Resources Ltd. |
|
|
72 |
|
|
|
29 |
|
|
|
|
|
|
|
101 |
|
Shore Gold Inc. |
|
|
4 |
|
|
|
14 |
|
|
|
|
|
|
|
18 |
|
Other |
|
|
9 |
|
|
|
4 |
|
|
|
|
|
|
|
13 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
370 |
|
|
|
640 |
|
|
|
|
|
|
|
1,010 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other investments, at cost |
|
|
7 |
|
|
|
|
|
|
|
|
|
|
|
7 |
|
Investment in Affiliate: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AGR Matthey Joint Venture |
|
|
19 |
|
|
|
|
|
|
|
|
|
|
|
19 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
436 |
|
|
$ |
642 |
|
|
$ |
(9 |
) |
|
$ |
1,069 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At December 31, 2008 |
|
|
|
Cost/Equity |
|
|
Unrealized |
|
|
Fair/Equity |
|
|
|
Basis |
|
|
Gain |
|
|
Loss |
|
|
Basis |
|
Current: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Marketable Equity Securities |
|
$ |
14 |
|
|
$ |
1 |
|
|
$ |
(3 |
) |
|
$ |
12 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-term: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Marketable Debt Securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset backed securities |
|
$ |
25 |
|
|
$ |
|
|
|
$ |
(3 |
) |
|
$ |
22 |
|
Auction rate securities |
|
|
7 |
|
|
|
|
|
|
|
(2 |
) |
|
|
5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
32 |
|
|
|
|
|
|
|
(5 |
) |
|
|
27 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Marketable Equity Securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Canadian Oil Sands Trust |
|
|
251 |
|
|
|
283 |
|
|
|
|
|
|
|
534 |
|
Gabriel Resources Ltd. |
|
|
64 |
|
|
|
|
|
|
|
|
|
|
|
64 |
|
Shore Gold Inc. |
|
|
6 |
|
|
|
|
|
|
|
|
|
|
|
6 |
|
Other |
|
|
8 |
|
|
|
|
|
|
|
(3 |
) |
|
|
5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
329 |
|
|
|
283 |
|
|
|
(3 |
) |
|
|
609 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other investments, at cost |
|
|
7 |
|
|
|
|
|
|
|
|
|
|
|
7 |
|
Investment in Affiliate: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AGR Matthey Joint Venture |
|
|
12 |
|
|
|
|
|
|
|
|
|
|
|
12 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
380 |
|
|
$ |
283 |
|
|
$ |
(8 |
) |
|
$ |
655 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
During the third quarter of 2009, the Company did not recognize any impairments for
other-than temporary declines in value, resulting in total impairments for the first nine months of
2009 of $2 for Shore Gold Inc. and $4 for other marketable equity securities. During the third
quarter of 2008, the Company recognized impairments for other-than temporary declines in value of
$26 for Shore Gold Inc. and $8 for other marketable securities, resulting in total impairments of
$58 for Shore Gold Inc., $13 for Gabriel Resources Ltd. and $19 for other marketable securities for
the first nine months of 2008.
23
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 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 |
|
|
|
|
|
|
|
Unrealized |
|
|
|
|
|
|
Unrealized |
|
|
|
|
|
|
Unrealized |
|
At September 30, 2009 |
|
Fair Value |
|
|
Losses |
|
|
Fair Value |
|
|
Losses |
|
|
Fair Value |
|
|
Losses |
|
Asset backed securities |
|
$ |
18 |
|
|
$ |
7 |
|
|
$ |
|
|
|
$ |
|
|
|
$ |
18 |
|
|
$ |
7 |
|
Auction rate securities |
|
|
|
|
|
|
|
|
|
|
5 |
|
|
|
2 |
|
|
|
5 |
|
|
|
2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
18 |
|
|
$ |
7 |
|
|
$ |
5 |
|
|
$ |
2 |
|
|
$ |
23 |
|
|
$ |
9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less than 12 Months |
|
|
12 Months or Greater |
|
|
Total |
|
|
|
|
|
|
|
Unrealized |
|
|
|
|
|
|
Unrealized |
|
|
|
|
|
|
Unrealized |
|
At December 31, 2008 |
|
Fair Value |
|
|
Losses |
|
|
Fair Value |
|
|
Losses |
|
|
Fair Value |
|
|
Losses |
|
Marketable equity securities |
|
$ |
6 |
|
|
$ |
6 |
|
|
$ |
|
|
|
$ |
|
|
|
$ |
6 |
|
|
$ |
6 |
|
Asset backed securities |
|
|
22 |
|
|
|
3 |
|
|
|
|
|
|
|
|
|
|
|
22 |
|
|
|
3 |
|
Auction rate securities |
|
|
|
|
|
|
|
|
|
|
5 |
|
|
|
2 |
|
|
|
5 |
|
|
|
2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
28 |
|
|
$ |
9 |
|
|
$ |
5 |
|
|
$ |
2 |
|
|
$ |
33 |
|
|
$ |
11 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The unrealized loss of $9 and $11 at September 30, 2009 and December 31, 2008,
respectively, relates to the Companys investments in marketable equity securities, auction rate
securities and asset backed commercial paper as listed in the tables above. While the fair values
of these investments are below their respective cost, the Company views these declines as
temporary. Generally, the Companys policy is to treat a decline in a marketable equity securitys
quoted market value that has lasted continuously for more than six months as an
other-than-temporary decline in value. The fair values of these marketable equity securities have
not been continuously below cost for the past six months. The Company intends to hold its
investment in auction rate securities and asset backed commercial paper until maturity or such time
that the market recovers and therefore considers these losses temporary.
NOTE 18 INVENTORIES
|
|
|
|
|
|
|
|
|
|
|
At September 30, |
|
|
At December 31, |
|
|
|
2009 |
|
|
2008 |
|
In-process |
|
$ |
70 |
|
|
$ |
53 |
|
Concentrate |
|
|
12 |
|
|
|
54 |
|
Precious metals |
|
|
15 |
|
|
|
20 |
|
Materials, supplies and other |
|
|
382 |
|
|
|
380 |
|
|
|
|
|
|
|
|
|
|
$ |
479 |
|
|
$ |
507 |
|
|
|
|
|
|
|
|
During the first nine months of 2009, the Company recorded write-downs of $5 to reduce
the carrying value of material and supplies inventories to net realizable value, primarily related
to Nevada and Batu Hijau. During the first nine months of 2008, the Company recorded write-downs of
$1 to reduce the carrying value of material and supplies inventories to net realizable value,
primarily related to Batu Hijau. Inventory write-downs are classified as components of Costs
applicable to sales.
NOTE 19 STOCKPILES AND ORE ON LEACH PADS
|
|
|
|
|
|
|
|
|
|
|
At September 30, |
|
|
At December 31, |
|
|
|
2009 |
|
|
2008 |
|
Current: |
|
|
|
|
|
|
|
|
Stockpiles |
|
$ |
158 |
|
|
$ |
117 |
|
Ore on leach pads |
|
|
196 |
|
|
|
173 |
|
|
|
|
|
|
|
|
|
|
$ |
354 |
|
|
$ |
290 |
|
|
|
|
|
|
|
|
Long-term: |
|
|
|
|
|
|
|
|
Stockpiles |
|
$ |
1,113 |
|
|
$ |
872 |
|
Ore on leach pads |
|
|
298 |
|
|
|
264 |
|
|
|
|
|
|
|
|
|
|
$ |
1,411 |
|
|
$ |
1,136 |
|
|
|
|
|
|
|
|
24
NEWMONT MINING CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)
(dollars in millions, except per share, per ounce and per pound amounts)
At September 30, 2009, stockpiles were primarily located at Batu Hijau ($788), Nevada
($250) and Australia/New Zealand ($140) and leach pads were primarily located at Yanacocha ($310)
and Nevada ($177). During the first nine
months of 2008, the Company recorded write-downs of $2 included in Costs applicable to sales
in Australia/New Zealand to reduce the carrying value of stockpiles to net realized value.
Stockpile write-downs are classified as components of Costs applicable to sales.
NOTE 20 OTHER ASSETS
|
|
|
|
|
|
|
|
|
|
|
At September 30, |
|
|
At December 31, |
|
|
|
2009 |
|
|
2008 |
|
Other current assets: |
|
|
|
|
|
|
|
|
Refinery metal inventory and receivable |
|
$ |
355 |
|
|
$ |
168 |
|
Derivative instruments (Note 16) |
|
|
82 |
|
|
|
6 |
|
Other prepaid assets |
|
|
64 |
|
|
|
43 |
|
Notes receivable |
|
|
11 |
|
|
|
8 |
|
Prepaid income and mining taxes |
|
|
11 |
|
|
|
187 |
|
Other |
|
|
58 |
|
|
|
43 |
|
|
|
|
|
|
|
|
|
|
$ |
581 |
|
|
$ |
455 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other long-term assets: |
|
|
|
|
|
|
|
|
Derivative instruments (Note 16) |
|
$ |
67 |
|
|
$ |
8 |
|
Debt issuance costs |
|
|
53 |
|
|
|
29 |
|
Restricted cash |
|
|
30 |
|
|
|
33 |
|
Prepaid royalties |
|
|
19 |
|
|
|
19 |
|
Other receivables |
|
|
15 |
|
|
|
17 |
|
Corporate-owned life insurance |
|
|
13 |
|
|
|
26 |
|
Prepaid maintenance costs |
|
|
11 |
|
|
|
13 |
|
Other |
|
|
53 |
|
|
|
62 |
|
|
|
|
|
|
|
|
|
|
$ |
261 |
|
|
$ |
207 |
|
|
|
|
|
|
|
|
NOTE 21 DEBT
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At September 30, 2009 |
|
|
At December 31, 2008 |
|
|
|
Current |
|
|
Non-Current |
|
|
Current |
|
|
Non-Current |
|
Sale-leaseback of refractory ore treatment plant |
|
$ |
24 |
|
|
$ |
164 |
|
|
$ |
24 |
|
|
$ |
188 |
|
8 5/8% debentures, net of discount (due 2011) |
|
|
|
|
|
|
219 |
|
|
|
|
|
|
|
214 |
|
Corporate revolving credit facility (due 2012) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
757 |
|
2012 convertible senior notes, net of discount |
|
|
|
|
|
|
458 |
|
|
|
|
|
|
|
|
|
2014 convertible senior notes, net of discount |
|
|
|
|
|
|
463 |
|
|
|
|
|
|
|
448 |
|
2017 convertible senior notes, net of discount |
|
|
|
|
|
|
413 |
|
|
|
|
|
|
|
401 |
|
5 1/8% senior notes, net of discount (due 2019) |
|
|
|
|
|
|
896 |
|
|
|
|
|
|
|
|
|
5 7/8% notes, net of discount (due 2035) |
|
|
|
|
|
|
597 |
|
|
|
|
|
|
|
597 |
|
6 1/4% senior notes, net of discount (due 2039) |
|
|
|
|
|
|
1,087 |
|
|
|
|
|
|
|
|
|
PTNNT project financing facility |
|
|
87 |
|
|
|
176 |
|
|
|
87 |
|
|
|
219 |
|
PTNNT shareholder loans |
|
|
72 |
|
|
|
|
|
|
|
18 |
|
|
|
|
|
Yanacocha credit facility |
|
|
14 |
|
|
|
52 |
|
|
|
14 |
|
|
|
62 |
|
Yanacocha bonds |
|
|
4 |
|
|
|
96 |
|
|
|
|
|
|
|
100 |
|
Ahafo project facility |
|
|
10 |
|
|
|
70 |
|
|
|
9 |
|
|
|
66 |
|
Other project financings and capital leases |
|
|
14 |
|
|
|
7 |
|
|
|
13 |
|
|
|
20 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
225 |
|
|
$ |
4,698 |
|
|
$ |
165 |
|
|
$ |
3,072 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
During the first nine months of 2009, the Company repaid all borrowings under its $2,000
revolving credit facility and completed three debt offerings. In February, the Company issued $518
convertible senior notes maturing on February 15, 2012 for net proceeds of $504. The notes pay
interest semi-annually at a rate of 3.0% per annum and the effective interest rate is 8.5%. The
notes are convertible, at the holders option, equivalent to a conversion price of $46.25 per share
of common stock. The portion of the proceeds related to the conversion feature has been recognized
as additional paid-in capital. In September, the Company completed a two part public offering of
$900 and $1,100 senior notes maturing on October 1, 2019 and October 1, 2039, respectively. Net
proceeds from the 2019 and 2039 notes were $896 and $1,082, respectively. The 2019 notes pay
interest semi-annually at a rate of 5.125% per annum and the 2039 notes pay semi-annual interest of
6.25% per annum.
25
NEWMONT MINING CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)
(dollars in millions, except per share, per ounce and per pound amounts)
During the first quarter of 2009, PTNNT shareholders loaned an additional $124 to PTNNT. Total
principal outstanding under the shareholder loans was $165 and $41 at September 30, 2009 and
December 31, 2008, respectively. At September 30, 2009 and December 31, 2008, 43.75% or
approximately $72 and $18, respectively, were due to Nusa Tenggara Mining Corporation, an affiliate
of Sumitomo Mining Corporation, an unrelated third party, and was non-recourse to Newmont, with the
remainder payable to Newmont.
As further discussed in Note 27, through mid-October 2009 the Company provided a joint and
several guarantee for the payment of principal and interest amounts associated with the PTNNT
project financing facility, which was non-recourse to Newmont at December 31, 2008. On October 21,
2009, the Company provided letters of credit to the Senior Lenders to secure 56.25% of the PTNNT
project financing facility, and as a result, the Company no longer provides a separate corporate
guarantee in support of the financing.
Scheduled minimum debt repayments at September 30, 2009 are $127 for the remainder of 2009,
$157 in 2010, $336 in 2011, $603 in 2012, $116 in 2013 and $3,584 thereafter.
NOTE 22 OTHER LIABILITIES
|
|
|
|
|
|
|
|
|
|
|
At September 30, |
|
|
At December 31, |
|
|
|
2009 |
|
|
2008 |
|
Other current liabilities: |
|
|
|
|
|
|
|
|
Refinery metal payable |
|
$ |
355 |
|
|
$ |
168 |
|
Boddington acquisition costs (Note 14) |
|
|
292 |
|
|
|
|
|
Accrued capital expenditures |
|
|
214 |
|
|
|
107 |
|
Accrued operating costs |
|
|
133 |
|
|
|
137 |
|
Reclamation and remediation costs (Note 23) |
|
|
53 |
|
|
|
58 |
|
Interest |
|
|
53 |
|
|
|
35 |
|
Royalties |
|
|
33 |
|
|
|
28 |
|
Peruvian royalty |
|
|
19 |
|
|
|
18 |
|
Taxes other than income and mining |
|
|
10 |
|
|
|
39 |
|
Deferred income tax |
|
|
8 |
|
|
|
8 |
|
Derivative instruments (Note 16) |
|
|
|
|
|
|
111 |
|
Other |
|
|
56 |
|
|
|
61 |
|
|
|
|
|
|
|
|
|
|
$ |
1,226 |
|
|
$ |
770 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other long-term liabilities: |
|
|
|
|
|
|
|
|
Income and mining taxes |
|
$ |
120 |
|
|
$ |
167 |
|
Boddington contingent consideration (Note 14) |
|
|
62 |
|
|
|
|
|
Derivative instruments (Note 16) |
|
|
|
|
|
|
43 |
|
Other |
|
|
54 |
|
|
|
42 |
|
|
|
|
|
|
|
|
|
|
$ |
236 |
|
|
$ |
252 |
|
|
|
|
|
|
|
|
26
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 RECLAMATION AND REMEDIATION LIABILITIES (ASSET RETIREMENT OBLIGATIONS)
At September 30, 2009 and December 31, 2008, $624 and $594, respectively, were accrued for
reclamation obligations relating to mineral properties in accordance with asset retirement
obligation accounting guidance. 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 September 30, 2009 and December 31, 2008, $153 and $163, respectively, were accrued for such
obligations. These amounts are also included in Reclamation and remediation liabilities.
The following is a reconciliation of the liability for asset retirement obligations:
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended |
|
|
|
September 30, |
|
|
|
2009 |
|
|
2008 |
|
Balance at beginning of period |
|
$ |
757 |
|
|
$ |
672 |
|
Additions, changes in estimates and other |
|
|
21 |
|
|
|
57 |
|
Liabilities settled |
|
|
(35 |
) |
|
|
(83 |
) |
Accretion expense |
|
|
34 |
|
|
|
30 |
|
|
|
|
|
|
|
|
Balance at end of period |
|
$ |
777 |
|
|
$ |
676 |
|
|
|
|
|
|
|
|
The current portions of Reclamation and remediation liabilities of $53 and $58 at
September 30, 2009 and December 31, 2008, respectively, are included in Other current liabilities.
The Companys reclamation and remediation expenses consisted of:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
Nine Months Ended |
|
|
|
September 30, |
|
|
September 30, |
|
|
|
2009 |
|
|
2008 |
|
|
2009 |
|
|
2008 |
|
Asset retirement cost amortization |
|
$ |
7 |
|
|
$ |
7 |
|
|
$ |
21 |
|
|
$ |
18 |
|
Accretion operating |
|
|
8 |
|
|
|
7 |
|
|
|
25 |
|
|
|
23 |
|
Accretion non-operating (Note 4) |
|
|
3 |
|
|
|
2 |
|
|
|
9 |
|
|
|
7 |
|
Reclamation estimate revisions
non-operating (Note 4) |
|
|
|
|
|
|
13 |
|
|
|
|
|
|
|
74 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
18 |
|
|
$ |
29 |
|
|
$ |
55 |
|
|
$ |
122 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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:
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended |
|
|
|
September 30, |
|
|
|
2009 |
|
|
2008 |
|
Decrease (increase) in operating assets: |
|
|
|
|
|
|
|
|
Trade and accounts receivable |
|
$ |
200 |
|
|
$ |
25 |
|
Inventories, stockpiles and ore on leach pads |
|
|
(249 |
) |
|
|
(236 |
) |
EGR refinery assets |
|
|
(179 |
) |
|
|
(47 |
) |
Other assets |
|
|
4 |
|
|
|
(112 |
) |
Increase (decrease) in operating liabilities: |
|
|
|
|
|
|
|
|
Accounts payable and other accrued liabilities |
|
|
53 |
|
|
|
(88 |
) |
EGR refinery liabilities |
|
|
179 |
|
|
|
47 |
|
Reclamation liabilities |
|
|
(35 |
) |
|
|
(83 |
) |
|
|
|
|
|
|
|
|
|
$ |
(27 |
) |
|
$ |
(494 |
) |
|
|
|
|
|
|
|
27
NEWMONT MINING CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)
(dollars in millions, except per share, per ounce and per pound amounts)
NOTE 25 SEGMENT INFORMATION
The Companys reportable segments are based upon the Companys management organization
structure that is focused on the geographic region for the companys operations. Segment results
for 2008 have been retrospectively revised to reflect an organizational change, effective in the
first quarter of 2009, that (i) moved the results of the La Herradura operation in Mexico to North
America from Other and (ii) combined the management of exploration and advanced projects activities
under one executive and assigned the legacy exploration segment to the regional reportable
segments. As a result of managements decision in the second quarter of 2009 to dispose of the Kori
Kollo operation in Bolivia, Kori Kollo has been reclassified to discontinued operations.
Financial information relating to Newmonts segments is as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs |
|
|
|
|
|
|
Advanced |
|
|
|
|
|
|
|
|
|
|
Applicable to |
|
|
|
|
|
|
Projects and |
|
|
Pre-Tax |
|
Three Months Ended September 30, 2009 |
|
Sales |
|
|
Sales |
|
|
Amortization |
|
|
Exploration |
|
|
Income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nevada |
|
$ |
481 |
|
|
$ |
273 |
|
|
$ |
69 |
|
|
$ |
13 |
|
|
$ |
118 |
|
Hope Bay |
|
|
|
|
|
|
|
|
|
|
3 |
|
|
|
20 |
|
|
|
(24 |
) |
La Herradura |
|
|
23 |
|
|
|
8 |
|
|
|
2 |
|
|
|
1 |
|
|
|
12 |
|
Other North America |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North America |
|
|
504 |
|
|
|
281 |
|
|
|
74 |
|
|
|
34 |
|
|
|
104 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Yanacocha |
|
|
535 |
|
|
|
163 |
|
|
|
43 |
|
|
|
6 |
|
|
|
299 |
|
Other South America |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 |
|
|
|
(2 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
South America |
|
|
535 |
|
|
|
163 |
|
|
|
43 |
|
|
|
7 |
|
|
|
297 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Boddington |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12 |
|
|
|
(11 |
) |
Other Australia/New Zealand |
|
|
282 |
|
|
|
152 |
|
|
|
32 |
|
|
|
6 |
|
|
|
77 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Australia/New Zealand |
|
|
282 |
|
|
|
152 |
|
|
|
32 |
|
|
|
18 |
|
|
|
66 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Batu Hijau: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gold |
|
|
201 |
|
|
|
37 |
|
|
|
10 |
|
|
|
|
|
|
|
|
|
Copper |
|
|
396 |
|
|
|
71 |
|
|
|
18 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Batu Hijau |
|
|
597 |
|
|
|
108 |
|
|
|
28 |
|
|
|
|
|
|
|
445 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Asia Pacific |
|
|
|
|
|
|
|
|
|
|
1 |
|
|
|
4 |
|
|
|
(17 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asia Pacific |
|
|
879 |
|
|
|
260 |
|
|
|
61 |
|
|
|
22 |
|
|
|
494 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Africa |
|
|
131 |
|
|
|
61 |
|
|
|
17 |
|
|
|
4 |
|
|
|
44 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate and Other |
|
|
|
|
|
|
|
|
|
|
4 |
|
|
|
15 |
|
|
|
(35 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated |
|
$ |
2,049 |
|
|
$ |
765 |
|
|
$ |
199 |
|
|
$ |
82 |
|
|
$ |
904 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
28
NEWMONT MINING CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)
(dollars in millions, except per share, per ounce and per pound amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs |
|
|
|
|
|
|
Advanced |
|
|
|
|
|
|
|
|
|
|
Applicable to |
|
|
|
|
|
|
Projects and |
|
|
Pre-Tax |
|
Three Months Ended September 30, 2008 |
|
Sales |
|
|
Sales |
|
|
Amortization |
|
|
Exploration |
|
|
Income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nevada |
|
$ |
471 |
|
|
$ |
271 |
|
|
$ |
65 |
|
|
$ |
13 |
|
|
$ |
109 |
|
Hope Bay |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
21 |
|
|
|
(21 |
) |
La Herradura |
|
|
19 |
|
|
|
9 |
|
|
|
2 |
|
|
|
2 |
|
|
|
6 |
|
Other North America |
|
|
|
|
|
|
|
|
|
|
1 |
|
|
|
6 |
|
|
|
(9 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North America |
|
|
490 |
|
|
|
280 |
|
|
|
68 |
|
|
|
42 |
|
|
|
85 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Yanacocha |
|
|
378 |
|
|
|
159 |
|
|
|
43 |
|
|
|
7 |
|
|
|
157 |
|
Other South America |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
8 |
|
|
|
21 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
South America |
|
|
378 |
|
|
|
159 |
|
|
|
43 |
|
|
|
15 |
|
|
|
178 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Boddington |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2 |
|
|
|
(7 |
) |
Other Australia/New Zealand |
|
|
273 |
|
|
|
178 |
|
|
|
33 |
|
|
|
7 |
|
|
|
66 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Australia/New Zealand |
|
|
273 |
|
|
|
178 |
|
|
|
33 |
|
|
|
9 |
|
|
|
59 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Batu Hijau: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gold |
|
|
23 |
|
|
|
20 |
|
|
|
4 |
|
|
|
|
|
|
|
|
|
Copper |
|
|
90 |
|
|
|
88 |
|
|
|
16 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Batu Hijau |
|
|
113 |
|
|
|
108 |
|
|
|
20 |
|
|
|
2 |
|
|
|
(43 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Asia Pacific |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6 |
|
|
|
(19 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asia Pacific |
|
|
386 |
|
|
|
286 |
|
|
|
53 |
|
|
|
17 |
|
|
|
(3 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Africa |
|
|
117 |
|
|
|
55 |
|
|
|
16 |
|
|
|
12 |
|
|
|
29 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate and Other |
|
|
|
|
|
|
|
|
|
|
6 |
|
|
|
15 |
|
|
|
(67 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated |
|
$ |
1,371 |
|
|
$ |
780 |
|
|
$ |
186 |
|
|
$ |
101 |
|
|
$ |
222 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
29
NEWMONT MINING CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)
(dollars in millions, except per share, per ounce and per pound amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs |
|
|
|
|
|
|
Advanced |
|
|
|
|
|
|
|
|
|
|
Nine Months Ended |
|
|
|
|
|
Applicable to |
|
|
|
|
|
|
Projects and |
|
|
Pre-Tax |
|
|
Total |
|
|
Capital |
|
September 30, 2009 |
|
|
Sales |
|
Sales |
|
|
Amortization |
|
|
Exploration |
|
| Income |
|
|
Asset
(1) |
|
|
Expenditures (2) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nevada |
|
$ |
1,321 |
|
|
$ |
764 |
|
|
$ |
183 |
|
|
$ |
40 |
|
|
$ |
309 |
|
|
$ |
3,215 |
|
|
$ |
154 |
|
Hope Bay |
|
|
|
|
|
|
|
|
|
|
9 |
|
|
|
56 |
|
|
|
(64 |
) |
|
|
1,818 |
|
|
|
4 |
|
La Herradura |
|
|
75 |
|
|
|
30 |
|
|
|
7 |
|
|
|
2 |
|
|
|
36 |
|
|
|
116 |
|
|
|
34 |
|
Other North America |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 |
|
|
|
(6 |
) |
|
|
55 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North America |
|
|
1,396 |
|
|
|
794 |
|
|
|
199 |
|
|
|
99 |
|
|
|
275 |
|
|
|
5,204 |
|
|
|
192 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Yanacocha |
|
|
1,451 |
|
|
|
488 |
|
|
|
128 |
|
|
|
16 |
|
|
|
747 |
|
|
|
2,182 |
|
|
|
94 |
|
Other South America |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
15 |
|
|
|
(13 |
) |
|
|
28 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
South America |
|
|
1,451 |
|
|
|
488 |
|
|
|
128 |
|
|
|
31 |
|
|
|
734 |
|
|
|
2,210 |
|
|
|
94 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Boddington |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
29 |
|
|
|
(87 |
) |
|
|
3,832 |
|
|
|
961 |
|
Other Australia/New
Zealand |
|
|
814 |
|
|
|
438 |
|
|
|
94 |
|
|
|
18 |
|
|
|
243 |
|
|
|
843 |
|
|
|
75 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Australia/New
Zealand |
|
|
814 |
|
|
|
438 |
|
|
|
94 |
|
|
|
47 |
|
|
|
156 |
|
|
|
4,675 |
|
|
|
1,036 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Batu Hijau: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gold |
|
|
358 |
|
|
|
88 |
|
|
|
23 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Copper |
|
|
786 |
|
|
|
217 |
|
|
|
55 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Batu
Hijau |
|
|
1,144 |
|
|
|
305 |
|
|
|
78 |
|
|
|
|
|
|
|
713 |
|
|
|
3,024 |
|
|
|
30 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Asia Pacific |
|
|
|
|
|
|
|
|
|
|
2 |
|
|
|
9 |
|
|
|
(32 |
) |
|
|
215 |
|
|
|
2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asia Pacific |
|
|
1,958 |
|
|
|
743 |
|
|
|
174 |
|
|
|
56 |
|
|
|
837 |
|
|
|
7,914 |
|
|
|
1,068 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Africa |
|
|
382 |
|
|
|
175 |
|
|
|
51 |
|
|
|
16 |
|
|
|
128 |
|
|
|
1,163 |
|
|
|
46 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate and Other
(1) |
|
|
|
|
|
|
|
|
|
|
14 |
|
|
|
45 |
|
|
|
(224 |
) |
|
|
4,656 |
|
|
|
12 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated |
|
$ |
5,187 |
|
|
$ |
2,200 |
|
|
$ |
566 |
|
|
$ |
247 |
|
|
$ |
1,750 |
|
|
$ |
21,147 |
|
|
$ |
1,412 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
|
Corporate and Other includes $31 of Assets held for sale (Note 9).
(2) Accrual basis; includes increase in accrued capital of $98. Consolidated capital
expenditures on a cash basis were $1,314. |
|
(2) |
|
Accrual basis; includes increase in accrued capital of $98. Consolidated capital
expenditures on a cash basis were $1,314. |
30
NEWMONT MINING CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)
(dollars in millions, except per share, per ounce and per pound amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs |
|
|
|
|
|
|
Advanced |
|
|
|
|
|
|
|
|
|
|
Nine Months Ended |
|
|
|
|
|
Applicable to |
|
|
|
|
|
|
Projects and |
|
|
Pre-Tax |
|
|
Total |
|
|
Capital |
|
September 30, 2008 |
|
Sales |
|
|
Sales |
|
|
Amortization |
|
|
Exploration |
|
|
Income |
|
|
Assets(1) |
|
|
Expenditures(2) |
|
|
Nevada |
|
$ |
1,457 |
|
|
$ |
724 |
|
|
$ |
175 |
|
|
$ |
35 |
|
|
$ |
495 |
|
|
$ |
3,249 |
|
|
$ |
227 |
|
Hope Bay |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
43 |
|
|
|
(43 |
) |
|
|
1,848 |
|
|
|
63 |
|
La Herradura |
|
|
64 |
|
|
|
27 |
|
|
|
6 |
|
|
|
4 |
|
|
|
27 |
|
|
|
88 |
|
|
|
17 |
|
Other North America |
|
|
|
|
|
|
|
|
|
|
1 |
|
|
|
21 |
|
|
|
(27 |
) |
|
|
196 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North America |
|
|
1,521 |
|
|
|
751 |
|
|
|
182 |
|
|
|
103 |
|
|
|
452 |
|
|
|
5,381 |
|
|
|
307 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Yanacocha |
|
|
1,265 |
|
|
|
488 |
|
|
|
131 |
|
|
|
20 |
|
|
|
571 |
|
|
|
2,047 |
|
|
|
126 |
|
Other South America |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
25 |
|
|
|
5 |
|
|
|
38 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
South America |
|
|
1,265 |
|
|
|
488 |
|
|
|
131 |
|
|
|
45 |
|
|
|
576 |
|
|
|
2,085 |
|
|
|
126 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Boddington |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
7 |
|
|
|
(8 |
) |
|
|
1,557 |
|
|
|
604 |
|
Other Australia/New
Zealand |
|
|
815 |
|
|
|
504 |
|
|
|
89 |
|
|
|
19 |
|
|
|
203 |
|
|
|
836 |
|
|
|
97 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Australia/New
Zealand |
|
|
815 |
|
|
|
504 |
|
|
|
89 |
|
|
|
26 |
|
|
|
195 |
|
|
|
2,393 |
|
|
|
701 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Batu Hijau: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gold |
|
|
171 |
|
|
|
76 |
|
|
|
15 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Copper |
|
|
705 |
|
|
|
342 |
|
|
|
67 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Batu
Hijau |
|
|
876 |
|
|
|
418 |
|
|
|
82 |
|
|
|
2 |
|
|
|
315 |
|
|
|
2,322 |
|
|
|
65 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Asia Pacific |
|
|
|
|
|
|
|
|
|
|
2 |
|
|
|
13 |
|
|
|
(82 |
) |
|
|
99 |
|
|
|
1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asia Pacific |
|
|
1,691 |
|
|
|
922 |
|
|
|
173 |
|
|
|
41 |
|
|
|
428 |
|
|
|
4,814 |
|
|
|
767 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Africa |
|
|
321 |
|
|
|
150 |
|
|
|
47 |
|
|
|
33 |
|
|
|
90 |
|
|
|
1,188 |
|
|
|
77 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate and Other
(1) |
|
|
1 |
|
|
|
|
|
|
|
15 |
|
|
|
45 |
|
|
|
(246 |
) |
|
|
3,115 |
|
|
|
6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated |
|
$ |
4,799 |
|
|
$ |
2,311 |
|
|
$ |
548 |
|
|
$ |
267 |
|
|
$ |
1,300 |
|
|
$ |
16,583 |
|
|
$ |
1,283 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
|
Corporate and Other includes $82 of Assets held for sale. |
|
(2) |
|
Accrual basis; includes increase in accrued capital of $67. Consolidated capital
expenditures on a cash basis were $1,350. |
|
|
|
|
|
|
|
|
|
|
|
At September 30, |
|
|
At December 31, |
|
|
|
2009 |
|
|
2008 |
|
Goodwill: |
|
|
|
|
|
|
|
|
Other Australia/New Zealand |
|
$ |
188 |
|
|
$ |
188 |
|
31
NEWMONT MINING CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)
(dollars in millions, except per share, per ounce and per pound amounts)
NOTE 26 CONDENSED CONSOLIDATING FINANCIAL STATEMENTS
Newmont USA, a 100% owned subsidiary of Newmont Mining Corporation, has fully and
unconditionally guaranteed the 5 7/8%, 5 1/8% and 6 1/4% publicly traded notes and the 2012, 2014
and 2017 convertible senior notes. The following consolidating financial statements are provided
for Newmont USA, as guarantor, and for Newmont Mining Corporation, as issuer, as an alternative to
providing separate financial statements for the guarantor. The accounts of Newmont Mining
Corporation are presented using the equity method of accounting for investments in subsidiaries.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30, 2009 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Newmont |
|
|
|
Newmont |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mining |
|
|
|
Mining |
|
|
Newmont |
|
|
Other |
|
|
|
|
|
|
Corporation |
|
Condensed Consolidating Statement of Income |
|
Corporation |
|
|
USA |
|
|
Subsidiaries |
|
|
Eliminations |
|
|
Consolidated |
|
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales gold, net |
|
$ |
|
|
|
$ |
1,240 |
|
|
$ |
413 |
|
|
$ |
|
|
|
$ |
1,653 |
|
Sales copper, net |
|
|
|
|
|
|
396 |
|
|
|
|
|
|
|
|
|
|
|
396 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,636 |
|
|
|
413 |
|
|
|
|
|
|
|
2,049 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs and expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs applicable to sales gold (1) |
|
|
|
|
|
|
480 |
|
|
|
219 |
|
|
|
(5 |
) |
|
|
694 |
|
Costs applicable to sales copper (1) |
|
|
|
|
|
|
71 |
|
|
|
|
|
|
|
|
|
|
|
71 |
|
Amortization |
|
|
|
|
|
|
146 |
|
|
|
54 |
|
|
|
(1 |
) |
|
|
199 |
|
Accretion |
|
|
|
|
|
|
6 |
|
|
|
2 |
|
|
|
|
|
|
|
8 |
|
Exploration |
|
|
|
|
|
|
26 |
|
|
|
29 |
|
|
|
|
|
|
|
55 |
|
Advanced projects, research and development |
|
|
|
|
|
|
11 |
|
|
|
17 |
|
|
|
(1 |
) |
|
|
27 |
|
General and administrative |
|
|
|
|
|
|
31 |
|
|
|
1 |
|
|
|
7 |
|
|
|
39 |
|
Other expense, net |
|
|
|
|
|
|
34 |
|
|
|
33 |
|
|
|
|
|
|
|
67 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
805 |
|
|
|
355 |
|
|
|
|
|
|
|
1,160 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income (expense) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income, net |
|
|
(2 |
) |
|
|
(1 |
) |
|
|
28 |
|
|
|
|
|
|
|
25 |
|
Interest income intercompany |
|
|
17 |
|
|
|
1 |
|
|
|
3 |
|
|
|
(21 |
) |
|
|
|
|
Interest expense intercompany |
|
|
(2 |
) |
|
|
|
|
|
|
(19 |
) |
|
|
21 |
|
|
|
|
|
Interest expense, net |
|
|
3 |
|
|
|
(12 |
) |
|
|
(1 |
) |
|
|
|
|
|
|
(10 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
16 |
|
|
|
(12 |
) |
|
|
11 |
|
|
|
|
|
|
|
15 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations before income tax and
other items |
|
|
16 |
|
|
|
819 |
|
|
|
69 |
|
|
|
|
|
|
|
904 |
|
Income tax benefit (expense) |
|
|
11 |
|
|
|
(250 |
) |
|
|
(14 |
) |
|
|
|
|
|
|
(253 |
) |
Equity income (loss) of affiliates |
|
|
361 |
|
|
|
(3 |
) |
|
|
48 |
|
|
|
(412 |
) |
|
|
(6 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from continuing operations |
|
|
388 |
|
|
|
566 |
|
|
|
103 |
|
|
|
(412 |
) |
|
|
645 |
|
Income (loss) from discontinued operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) |
|
|
388 |
|
|
|
566 |
|
|
|
103 |
|
|
|
(412 |
) |
|
|
645 |
|
Net loss (income) attributable to noncontrolling interests |
|
|
|
|
|
|
(257 |
) |
|
|
(16 |
) |
|
|
16 |
|
|
|
(257 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) attributable to Newmont stockholders |
|
$ |
388 |
|
|
$ |
309 |
|
|
$ |
87 |
|
|
$ |
(396 |
) |
|
$ |
388 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
|
Exclusive of Amortization and Accretion. |
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 September 30, 2008 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Newmont |
|
|
|
Newmont |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mining |
|
|
|
Mining |
|
|
Newmont |
|
|
Other |
|
|
|
|
|
|
Corporation |
|
Condensed Consolidating Statement of Income |
|
Corporation |
|
|
USA |
|
|
Subsidiaries |
|
|
Eliminations |
|
|
Consolidated |
|
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales gold, net |
|
$ |
|
|
|
$ |
890 |
|
|
$ |
391 |
|
|
$ |
|
|
|
$ |
1,281 |
|
Sales copper, net |
|
|
|
|
|
|
90 |
|
|
|
|
|
|
|
|
|
|
|
90 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
980 |
|
|
|
391 |
|
|
|
|
|
|
|
1,371 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs and expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs applicable to sales gold (1) |
|
|
|
|
|
|
460 |
|
|
|
237 |
|
|
|
(5 |
) |
|
|
692 |
|
Costs applicable to sales copper (1) |
|
|
|
|
|
|
88 |
|
|
|
|
|
|
|
|
|
|
|
88 |
|
Amortization |
|
|
|
|
|
|
135 |
|
|
|
51 |
|
|
|
|
|
|
|
186 |
|
Accretion |
|
|
|
|
|
|
5 |
|
|
|
2 |
|
|
|
|
|
|
|
7 |
|
Exploration |
|
|
|
|
|
|
34 |
|
|
|
23 |
|
|
|
|
|
|
|
57 |
|
Advanced projects, research and development |
|
|
|
|
|
|
14 |
|
|
|
31 |
|
|
|
(1 |
) |
|
|
44 |
|
General and administrative |
|
|
|
|
|
|
29 |
|
|
|
2 |
|
|
|
6 |
|
|
|
37 |
|
Other expense, net |
|
|
1 |
|
|
|
52 |
|
|
|
16 |
|
|
|
|
|
|
|
69 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 |
|
|
|
817 |
|
|
|
362 |
|
|
|
|
|
|
|
1,180 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income (expense) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income, net |
|
|
(24 |
) |
|
|
39 |
|
|
|
51 |
|
|
|
|
|
|
|
66 |
|
Interest income intercompany |
|
|
77 |
|
|
|
2 |
|
|
|
|
|
|
|
(79 |
) |
|
|
|
|
Interest expense intercompany |
|
|
(2 |
) |
|
|
|
|
|
|
(77 |
) |
|
|
79 |
|
|
|
|
|
Interest expense, net |
|
|
(16 |
) |
|
|
(19 |
) |
|
|
|
|
|
|
|
|
|
|
(35 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
35 |
|
|
|
22 |
|
|
|
(26 |
) |
|
|
|
|
|
|
31 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations before income tax
benefit (expense) and other items |
|
|
34 |
|
|
|
185 |
|
|
|
3 |
|
|
|
|
|
|
|
222 |
|
Income tax benefit (expense) |
|
|
16 |
|
|
|
(32 |
) |
|
|
10 |
|
|
|
|
|
|
|
(6 |
) |
Equity income (loss) of affiliates |
|
|
134 |
|
|
|
3 |
|
|
|
17 |
|
|
|
(155 |
) |
|
|
(1 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from continuing operations |
|
|
184 |
|
|
|
156 |
|
|
|
30 |
|
|
|
(155 |
) |
|
|
215 |
|
Income (loss) from discontinued operations |
|
|
7 |
|
|
|
(9 |
) |
|
|
|
|
|
|
9 |
|
|
|
7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) |
|
|
191 |
|
|
|
147 |
|
|
|
30 |
|
|
|
(146 |
) |
|
|
222 |
|
Net (income) loss attributable to noncontrolling interests |
|
|
|
|
|
|
(33 |
) |
|
|
(5 |
) |
|
|
7 |
|
|
|
(31 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) attributable to Newmont stockholders |
|
$ |
191 |
|
|
$ |
114 |
|
|
$ |
25 |
|
|
$ |
(139 |
) |
|
$ |
191 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
|
Exclusive of Amortization and Accretion. |
33
NEWMONT MINING CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)
(dollars in millions, except per share, per ounce and per pound amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended September 30, 2009 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Newmont |
|
|
|
Newmont |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mining |
|
|
|
Mining |
|
|
Newmont |
|
|
Other |
|
|
|
|
|
|
Corporation |
|
Condensed Consolidating Statement of Income |
|
Corporation |
|
|
USA |
|
|
Subsidiaries |
|
|
Eliminations |
|
|
Consolidated |
|
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales gold, net |
|
$ |
|
|
|
$ |
3,205 |
|
|
$ |
1,196 |
|
|
$ |
|
|
|
$ |
4,401 |
|
Sales copper, net |
|
|
|
|
|
|
786 |
|
|
|
|
|
|
|
|
|
|
|
786 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3,991 |
|
|
|
1,196 |
|
|
|
|
|
|
|
5,187 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs and expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs applicable to sales gold (1) |
|
|
|
|
|
|
1,370 |
|
|
|
630 |
|
|
|
(17 |
) |
|
|
1,983 |
|
Costs applicable to sales copper (1) |
|
|
|
|
|
|
217 |
|
|
|
|
|
|
|
|
|
|
|
217 |
|
Amortization |
|
|
|
|
|
|
408 |
|
|
|
159 |
|
|
|
(1 |
) |
|
|
566 |
|
Accretion |
|
|
|
|
|
|
19 |
|
|
|
6 |
|
|
|
|
|
|
|
25 |
|
Exploration |
|
|
|
|
|
|
74 |
|
|
|
73 |
|
|
|
|
|
|
|
147 |
|
Advanced projects, research and development |
|
|
|
|
|
|
46 |
|
|
|
57 |
|
|
|
(3 |
) |
|
|
100 |
|
General and administrative |
|
|
|
|
|
|
94 |
|
|
|
3 |
|
|
|
21 |
|
|
|
118 |
|
Other expense, net |
|
|
8 |
|
|
|
122 |
|
|
|
129 |
|
|
|
|
|
|
|
259 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
8 |
|
|
|
2,350 |
|
|
|
1,057 |
|
|
|
|
|
|
|
3,415 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income (expense) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income, net |
|
|
(12 |
) |
|
|
(1 |
) |
|
|
56 |
|
|
|
|
|
|
|
43 |
|
Interest income intercompany |
|
|
77 |
|
|
|
5 |
|
|
|
4 |
|
|
|
(86 |
) |
|
|
|
|
Interest expense intercompany |
|
|
(7 |
) |
|
|
|
|
|
|
(79 |
) |
|
|
86 |
|
|
|
|
|
Interest expense, net |
|
|
(24 |
) |
|
|
(37 |
) |
|
|
(4 |
) |
|
|
|
|
|
|
(65 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
34 |
|
|
|
(33 |
) |
|
|
(23 |
) |
|
|
|
|
|
|
(22 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations before income tax and
other items |
|
|
26 |
|
|
|
1,608 |
|
|
|
116 |
|
|
|
|
|
|
|
1,750 |
|
Income tax (expense) benefit |
|
|
(2 |
) |
|
|
(493 |
) |
|
|
1 |
|
|
|
|
|
|
|
(494 |
) |
Equity income (loss) of affiliates |
|
|
729 |
|
|
|
|
|
|
|
102 |
|
|
|
(845 |
) |
|
|
(14 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from continuing operations |
|
|
753 |
|
|
|
1,115 |
|
|
|
219 |
|
|
|
(845 |
) |
|
|
1,242 |
|
(Loss) income from discontinued operations |
|
|
(14 |
) |
|
|
(14 |
) |
|
|
|
|
|
|
14 |
|
|
|
(14 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) |
|
|
739 |
|
|
|
1,101 |
|
|
|
219 |
|
|
|
(831 |
) |
|
|
1,228 |
|
Net loss (income) attributable to noncontrolling interests |
|
|
|
|
|
|
(491 |
) |
|
|
(44 |
) |
|
|
46 |
|
|
|
(489 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) attributable to Newmont stockholders |
|
$ |
739 |
|
|
$ |
610 |
|
|
$ |
175 |
|
|
$ |
(785 |
) |
|
$ |
739 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
|
Exclusive of Amortization and Accretion. |
34
NEWMONT MINING CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)
(dollars in millions, except per share, per ounce and per pound amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended September 30, 2008 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Newmont |
|
|
|
Newmont |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mining |
|
|
|
Mining |
|
|
Newmont |
|
|
Other |
|
|
|
|
|
|
Corporation |
|
Condensed Consolidating Statement of Income |
|
Corporation |
|
|
USA |
|
|
Subsidiaries |
|
|
Eliminations |
|
|
Consolidated |
|
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales gold, net |
|
$ |
|
|
|
$ |
2,957 |
|
|
$ |
1,137 |
|
|
$ |
|
|
|
$ |
4,094 |
|
Sales copper, net |
|
|
|
|
|
|
705 |
|
|
|
|
|
|
|
|
|
|
|
705 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3,662 |
|
|
|
1,137 |
|
|
|
|
|
|
|
4,799 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs and expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs applicable to sales gold (1) |
|
|
|
|
|
|
1,317 |
|
|
|
667 |
|
|
|
(15 |
) |
|
|
1,969 |
|
Costs applicable to sales copper (1) |
|
|
|
|
|
|
342 |
|
|
|
|
|
|
|
|
|
|
|
342 |
|
Amortization |
|
|
|
|
|
|
409 |
|
|
|
140 |
|
|
|
(1 |
) |
|
|
548 |
|
Accretion |
|
|
|
|
|
|
17 |
|
|
|
6 |
|
|
|
|
|
|
|
23 |
|
Exploration |
|
|
|
|
|
|
93 |
|
|
|
61 |
|
|
|
|
|
|
|
154 |
|
Advanced projects, research and development |
|
|
|
|
|
|
38 |
|
|
|
76 |
|
|
|
(1 |
) |
|
|
113 |
|
General and administrative |
|
|
|
|
|
|
82 |
|
|
|
4 |
|
|
|
17 |
|
|
|
103 |
|
Other expense, net |
|
|
1 |
|
|
|
166 |
|
|
|
82 |
|
|
|
|
|
|
|
249 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 |
|
|
|
2,464 |
|
|
|
1,036 |
|
|
|
|
|
|
|
3,501 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income (expense) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income, net |
|
|
(33 |
) |
|
|
92 |
|
|
|
41 |
|
|
|
|
|
|
|
100 |
|
Interest income intercompany |
|
|
222 |
|
|
|
22 |
|
|
|
|
|
|
|
(244 |
) |
|
|
|
|
Interest expense intercompany |
|
|
(6 |
) |
|
|
|
|
|
|
(238 |
) |
|
|
244 |
|
|
|
|
|
Interest expense, net |
|
|
(52 |
) |
|
|
(41 |
) |
|
|
(5 |
) |
|
|
|
|
|
|
(98 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
131 |
|
|
|
73 |
|
|
|
(202 |
) |
|
|
|
|
|
|
2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from continuing operations before income
tax (expense) benefit and other items |
|
|
130 |
|
|
|
1,271 |
|
|
|
(101 |
) |
|
|
|
|
|
|
1,300 |
|
Income tax (expense) benefit |
|
|
(48 |
) |
|
|
(189 |
) |
|
|
44 |
|
|
|
|
|
|
|
(193 |
) |
Equity income (loss) of affiliates |
|
|
728 |
|
|
|
4 |
|
|
|
89 |
|
|
|
(827 |
) |
|
|
(6 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from continuing operations |
|
|
810 |
|
|
|
1,086 |
|
|
|
32 |
|
|
|
(827 |
) |
|
|
1,101 |
|
Income (loss) from discontinued operations |
|
|
17 |
|
|
|
(2 |
) |
|
|
3 |
|
|
|
(1 |
) |
|
|
17 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) |
|
|
827 |
|
|
|
1,084 |
|
|
|
35 |
|
|
|
(828 |
) |
|
|
1,118 |
|
Net (income) loss attributable to noncontrolling interests |
|
|
|
|
|
|
(304 |
) |
|
|
3 |
|
|
|
10 |
|
|
|
(291 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) attributable to Newmont stockholders |
|
$ |
827 |
|
|
$ |
780 |
|
|
$ |
38 |
|
|
$ |
(818 |
) |
|
$ |
827 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
|
Exclusive of Amortization and Accretion. |
35
NEWMONT MINING CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)
(dollars in millions, except per share, per ounce and per pound amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At September 30, 2009 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Newmont |
|
|
|
Newmont |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mining |
|
|
|
Mining |
|
|
Newmont |
|
|
Other |
|
|
|
|
|
|
Corporation |
|
Condensed Consolidating Balance Sheets |
|
Corporation |
|
|
USA |
|
|
Subsidiaries |
|
|
Eliminations |
|
|
Consolidated |
|
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
|
|
|
$ |
2,841 |
|
|
$ |
181 |
|
|
$ |
|
|
|
$ |
3,022 |
|
Marketable securities and other short-term investments |
|
|
|
|
|
|
3 |
|
|
|
16 |
|
|
|
|
|
|
|
19 |
|
Trade receivables |
|
|
|
|
|
|
266 |
|
|
|
14 |
|
|
|
|
|
|
|
280 |
|
Accounts receivable |
|
|
2,527 |
|
|
|
346 |
|
|
|
420 |
|
|
|
(3,179 |
) |
|
|
114 |
|
Inventories |
|
|
|
|
|
|
329 |
|
|
|
150 |
|
|
|
|
|
|
|
479 |
|
Stockpiles and ore on leach pads |
|
|
|
|
|
|
292 |
|
|
|
62 |
|
|
|
|
|
|
|
354 |
|
Deferred income tax assets |
|
|
|
|
|
|
155 |
|
|
|
34 |
|
|
|
|
|
|
|
189 |
|
Other current assets |
|
|
8 |
|
|
|
76 |
|
|
|
497 |
|
|
|
|
|
|
|
581 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current assets |
|
|
2,535 |
|
|
|
4,308 |
|
|
|
1,374 |
|
|
|
(3,179 |
) |
|
|
5,038 |
|
Property, plant and mine development, net |
|
|
|
|
|
|
5,184 |
|
|
|
6,984 |
|
|
|
(18 |
) |
|
|
12,150 |
|
Investments |
|
|
|
|
|
|
19 |
|
|
|
1,050 |
|
|
|
|
|
|
|
1,069 |
|
Investments in subsidiaries |
|
|
8,979 |
|
|
|
31 |
|
|
|
990 |
|
|
|
(10,000 |
) |
|
|
|
|
Stockpiles and ore on leach pads |
|
|
|
|
|
|
1,262 |
|
|
|
149 |
|
|
|
|
|
|
|
1,411 |
|
Deferred income tax assets |
|
|
|
|
|
|
816 |
|
|
|
183 |
|
|
|
|
|
|
|
999 |
|
Other long-term assets |
|
|
2,546 |
|
|
|
291 |
|
|
|
230 |
|
|
|
(2,806 |
) |
|
|
261 |
|
Goodwill |
|
|
|
|
|
|
|
|
|
|
188 |
|
|
|
|
|
|
|
188 |
|
Assets of operations held for sale |
|
|
|
|
|
|
31 |
|
|
|
|
|
|
|
|
|
|
|
31 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
14,060 |
|
|
$ |
11,942 |
|
|
$ |
11,148 |
|
|
$ |
(16,003 |
) |
|
$ |
21,147 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current portion of long-term debt |
|
$ |
|
|
|
$ |
215 |
|
|
$ |
10 |
|
|
$ |
|
|
|
$ |
225 |
|
Accounts payable |
|
|
29 |
|
|
|
1,438 |
|
|
|
2,041 |
|
|
|
(3,170 |
) |
|
|
338 |
|
Employee related benefits |
|
|
|
|
|
|
157 |
|
|
|
44 |
|
|
|
|
|
|
|
201 |
|
Income and mining taxes |
|
|
|
|
|
|
207 |
|
|
|
4 |
|
|
|
|
|
|
|
211 |
|
Other current liabilities |
|
|
26 |
|
|
|
247 |
|
|
|
2,924 |
|
|
|
(1,971 |
) |
|
|
1,226 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities |
|
|
55 |
|
|
|
2,264 |
|
|
|
5,023 |
|
|
|
(5,141 |
) |
|
|
2,201 |
|
Long-term debt |
|
|
3,913 |
|
|
|
714 |
|
|
|
71 |
|
|
|
|
|
|
|
4,698 |
|
Reclamation and remediation liabilities |
|
|
1 |
|
|
|
510 |
|
|
|
213 |
|
|
|
|
|
|
|
724 |
|
Deferred income tax liabilities |
|
|
43 |
|
|
|
370 |
|
|
|
816 |
|
|
|
|
|
|
|
1,229 |
|
Employee-related benefits |
|
|
4 |
|
|
|
319 |
|
|
|
54 |
|
|
|
|
|
|
|
377 |
|
Other long-term liabilities |
|
|
314 |
|
|
|
130 |
|
|
|
2,616 |
|
|
|
(2,824 |
) |
|
|
236 |
|
Liabilities of operations held for sale |
|
|
|
|
|
|
13 |
|
|
|
|
|
|
|
|
|
|
|
13 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities |
|
|
4,330 |
|
|
|
4,320 |
|
|
|
8,793 |
|
|
|
(7,965 |
) |
|
|
9,478 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Preferred stock |
|
|
|
|
|
|
|
|
|
|
61 |
|
|
|
(61 |
) |
|
|
|
|
Common stock |
|
|
768 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
768 |
|
Additional paid-in capital |
|
|
7,867 |
|
|
|
2,647 |
|
|
|
3,622 |
|
|
|
(6,076 |
) |
|
|
8,060 |
|
Accumulated other comprehensive income (loss) |
|
|
454 |
|
|
|
(146 |
) |
|
|
583 |
|
|
|
(437 |
) |
|
|
454 |
|
Retained earnings (deficit) |
|
|
641 |
|
|
|
3,315 |
|
|
|
(2,208 |
) |
|
|
(1,107 |
) |
|
|
641 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Newmont stockholders equity |
|
|
9,730 |
|
|
|
5,816 |
|
|
|
2,058 |
|
|
|
(7,681 |
) |
|
|
9,923 |
|
Noncontrolling interests |
|
|
|
|
|
|
1,806 |
|
|
|
297 |
|
|
|
(357 |
) |
|
|
1,746 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total equity |
|
|
9,730 |
|
|
|
7,622 |
|
|
|
2,355 |
|
|
|
(8,038 |
) |
|
|
11,669 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and equity |
|
$ |
14,060 |
|
|
$ |
11,942 |
|
|
$ |
11,148 |
|
|
$ |
(16,003 |
) |
|
$ |
21,147 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
36
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, 2008 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Newmont |
|
|
|
Newmont |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mining |
|
|
|
Mining |
|
|
Newmont |
|
|
Other |
|
|
|
|
|
|
Corporation |
|
Condensed Consolidating Balance Sheets |
|
Corporation |
|
|
USA |
|
|
Subsidiaries |
|
|
Eliminations |
|
|
Consolidated |
|
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
|
|
|
$ |
310 |
|
|
$ |
125 |
|
|
$ |
|
|
|
$ |
435 |
|
Marketable securities and other short-term investments |
|
|
|
|
|
|
1 |
|
|
|
11 |
|
|
|
|
|
|
|
12 |
|
Trade receivables |
|
|
|
|
|
|
97 |
|
|
|
7 |
|
|
|
|
|
|
|
104 |
|
Accounts receivable |
|
|
1,941 |
|
|
|
904 |
|
|
|
370 |
|
|
|
(3,001 |
) |
|
|
214 |
|
Inventories |
|
|
|
|
|
|
395 |
|
|
|
112 |
|
|
|
|
|
|
|
507 |
|
Stockpiles and ore on leach pads |
|
|
|
|
|
|
242 |
|
|
|
48 |
|
|
|
|
|
|
|
290 |
|
Deferred income tax assets |
|
|
|
|
|
|
236 |
|
|
|
48 |
|
|
|
|
|
|
|
284 |
|
Other current assets |
|
|
1 |
|
|
|
220 |
|
|
|
234 |
|
|
|
|
|
|
|
455 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current assets |
|
|
1,942 |
|
|
|
2,405 |
|
|
|
955 |
|
|
|
(3,001 |
) |
|
|
2,301 |
|
Property, plant and mine development, net |
|
|
|
|
|
|
5,325 |
|
|
|
4,822 |
|
|
|
(19 |
) |
|
|
10,128 |
|
Investments |
|
|
|
|
|
|
11 |
|
|
|
644 |
|
|
|
|
|
|
|
655 |
|
Investments in subsidiaries |
|
|
6,247 |
|
|
|
25 |
|
|
|
828 |
|
|
|
(7,100 |
) |
|
|
|
|
Stockpiles and ore on leach pads |
|
|
|
|
|
|
1,031 |
|
|
|
105 |
|
|
|
|
|
|
|
1,136 |
|
Deferred income tax assets |
|
|
(45 |
) |
|
|
873 |
|
|
|
211 |
|
|
|
|
|
|
|
1,039 |
|
Other long-term assets |
|
|
1,977 |
|
|
|
320 |
|
|
|
153 |
|
|
|
(2,243 |
) |
|
|
207 |
|
Goodwill |
|
|
|
|
|
|
|
|
|
|
188 |
|
|
|
|
|
|
|
188 |
|
Assets of operations held for sale |
|
|
|
|
|
|
73 |
|
|
|
|
|
|
|
|
|
|
|
73 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
10,121 |
|
|
$ |
10,063 |
|
|
$ |
7,906 |
|
|
$ |
(12,363 |
) |
|
$ |
15,727 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current portion of long-term debt |
|
$ |
|
|
|
$ |
156 |
|
|
$ |
9 |
|
|
$ |
|
|
|
$ |
165 |
|
Accounts payable |
|
|
524 |
|
|
|
586 |
|
|
|
2,292 |
|
|
|
(2,991 |
) |
|
|
411 |
|
Employee-related benefits |
|
|
|
|
|
|
139 |
|
|
|
31 |
|
|
|
|
|
|
|
170 |
|
Income and mining taxes |
|
|
21 |
|
|
|
39 |
|
|
|
1 |
|
|
|
|
|
|
|
61 |
|
Other current liabilities |
|
|
15 |
|
|
|
303 |
|
|
|
461 |
|
|
|
(9 |
) |
|
|
770 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities |
|
|
560 |
|
|
|
1,223 |
|
|
|
2,794 |
|
|
|
(3,000 |
) |
|
|
1,577 |
|
Long-term debt |
|
|
2,203 |
|
|
|
802 |
|
|
|
67 |
|
|
|
|
|
|
|
3,072 |
|
Reclamation and remediation liabilities |
|
|
1 |
|
|
|
502 |
|
|
|
196 |
|
|
|
|
|
|
|
699 |
|
Deferred income tax liabilities |
|
|
|
|
|
|
364 |
|
|
|
687 |
|
|
|
|
|
|
|
1,051 |
|
Employee-related benefits |
|
|
3 |
|
|
|
341 |
|
|
|
35 |
|
|
|
|
|
|
|
379 |
|
Other long-term liabilities |
|
|
283 |
|
|
|
182 |
|
|
|
2,049 |
|
|
|
(2,262 |
) |
|
|
252 |
|
Liabilities of operations held for sale |
|
|
|
|
|
|
36 |
|
|
|
|
|
|
|
|
|
|
|
36 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities |
|
|
3,050 |
|
|
|
3,450 |
|
|
|
5,828 |
|
|
|
(5,262 |
) |
|
|
7,066 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Preferred stock |
|
|
|
|
|
|
|
|
|
|
61 |
|
|
|
(61 |
) |
|
|
|
|
Common stock |
|
|
709 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
709 |
|
Additional paid-in capital |
|
|
6,611 |
|
|
|
2,647 |
|
|
|
4,334 |
|
|
|
(6,761 |
) |
|
|
6,831 |
|
Accumulated other comprehensive (loss) income |
|
|
(253 |
) |
|
|
(173 |
) |
|
|
(138 |
) |
|
|
311 |
|
|
|
(253 |
) |
Retained earnings (deficit) |
|
|
4 |
|
|
|
2,707 |
|
|
|
(2,381 |
) |
|
|
(326 |
) |
|
|
4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Newmont stockholders equity |
|
|
7,071 |
|
|
|
5,181 |
|
|
|
1,876 |
|
|
|
(6,837 |
) |
|
|
7,291 |
|
Noncontrolling interests |
|
|
|
|
|
|
1,432 |
|
|
|
202 |
|
|
|
(264 |
) |
|
|
1,370 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total equity |
|
|
7,071 |
|
|
|
6,613 |
|
|
|
2,078 |
|
|
|
(7,101 |
) |
|
|
8,661 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and equity |
|
$ |
10,121 |
|
|
$ |
10,063 |
|
|
$ |
7,906 |
|
|
$ |
(12,363 |
) |
|
$ |
15,727 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
37
NEWMONT MINING CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)
(dollars in millions, except per share, per ounce and per pound amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended September 30, 2009 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Newmont |
|
|
|
Newmont |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mining |
|
|
|
Mining |
|
|
Newmont |
|
|
Other |
|
|
|
|
|
|
Corporation |
|
Condensed Consolidating Statement of Cash Flows |
|
Corporation |
|
|
USA |
|
|
Subsidiaries |
|
|
Eliminations |
|
|
Consolidated |
|
Operating activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
$ |
739 |
|
|
$ |
1,101 |
|
|
$ |
219 |
|
|
$ |
(831 |
) |
|
$ |
1,228 |
|
Adjustments |
|
|
72 |
|
|
|
526 |
|
|
|
(684 |
) |
|
|
831 |
|
|
|
745 |
|
Net change in operating assets and liabilities |
|
|
(58 |
) |
|
|
(11 |
) |
|
|
42 |
|
|
|
|
|
|
|
(27 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided from (used in) continuing operations |
|
|
753 |
|
|
|
1,616 |
|
|
|
(423 |
) |
|
|
|
|
|
|
1,946 |
|
Net cash provided from discontinued operations |
|
|
|
|
|
|
3 |
|
|
|
|
|
|
|
|
|
|
|
3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided from (used in) operations |
|
|
753 |
|
|
|
1,619 |
|
|
|
(423 |
) |
|
|
|
|
|
|
1,949 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investing activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Additions to property, plant and mine development |
|
|
|
|
|
|
(334 |
) |
|
|
(980 |
) |
|
|
|
|
|
|
(1,314 |
) |
Proceeds from sale of marketable debt and equity
securities |
|
|
|
|
|
|
|
|
|
|
10 |
|
|
|
|
|
|
|
10 |
|
Acquisitions, net |
|
|
(8 |
) |
|
|
(11 |
) |
|
|
(747 |
) |
|
|
|
|
|
|
(766 |
) |
Other |
|
|
|
|
|
|
1 |
|
|
|
(19 |
) |
|
|
|
|
|
|
(18 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash used in investing activities |
|
|
(8 |
) |
|
|
(344 |
) |
|
|
(1,736 |
) |
|
|
|
|
|
|
(2,088 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financing activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net borrowings (repayments) |
|
|
1,724 |
|
|
|
(32 |
) |
|
|
6 |
|
|
|
|
|
|
|
1,698 |
|
Net intercompany (repayments) borrowings |
|
|
(3,565 |
) |
|
|
1,402 |
|
|
|
2,163 |
|
|
|
|
|
|
|
|
|
Dividends paid to common stockholders |
|
|
(147 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(147 |
) |
Dividends paid to noncontrolling interests in
subsidiaries |
|
|
|
|
|
|
(112 |
) |
|
|
(3 |
) |
|
|
|
|
|
|
(115 |
) |
Proceeds from stock issuance |
|
|
1,248 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,248 |
|
Change in restricted cash and other |
|
|
(5 |
) |
|
|
|
|
|
|
10 |
|
|
|
|
|
|
|
5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided from financing activities of
continuing operations |
|
|
(745 |
) |
|
|
1,258 |
|
|
|
2,176 |
|
|
|
|
|
|
|
2,689 |
|
Net cash (used in) provided from financing activities
of discontinued operations |
|
|
|
|
|
|
(2 |
) |
|
|
|
|
|
|
|
|
|
|
(2 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash (used in) provided from financing activities |
|
|
(745 |
) |
|
|
1,256 |
|
|
|
2,176 |
|
|
|
|
|
|
|
2,687 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect of exchange rate changes on cash |
|
|
|
|
|
|
|
|
|
|
39 |
|
|
|
|
|
|
|
39 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net change in cash and cash equivalents |
|
|
|
|
|
|
2,531 |
|
|
|
56 |
|
|
|
|
|
|
|
2,587 |
|
Cash and cash equivalents at beginning of period |
|
|
|
|
|
|
310 |
|
|
|
125 |
|
|
|
|
|
|
|
435 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents at end of period |
|
$ |
|
|
|
$ |
2,841 |
|
|
$ |
181 |
|
|
$ |
|
|
|
$ |
3,022 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
38
NEWMONT MINING CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)
(dollars in millions, except per share, per ounce and per pound amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended September 30, 2008 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Newmont |
|
|
|
Newmont |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mining |
|
|
|
Mining |
|
|
Newmont |
|
|
Other |
|
|
|
|
|
|
Corporation |
|
Condensed Consolidating Statement of Cash Flows |
|
Corporation |
|
|
USA |
|
|
Subsidiaries |
|
|
Eliminations |
|
|
Consolidated |
|
Operating activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
$ |
827 |
|
|
$ |
1,084 |
|
|
$ |
35 |
|
|
$ |
(828 |
) |
|
$ |
1,118 |
|
Adjustments |
|
|
59 |
|
|
|
223 |
|
|
|
(566 |
) |
|
|
828 |
|
|
|
544 |
|
Net change in operating assets and liabilities |
|
|
24 |
|
|
|
(428 |
) |
|
|
(90 |
) |
|
|
|
|
|
|
(494 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided from (used in) continuing operations |
|
|
910 |
|
|
|
879 |
|
|
|
(621 |
) |
|
|
|
|
|
|
1,168 |
|
Net cash (used in) provided from discontinued operations |
|
|
|
|
|
|
(125 |
) |
|
|
20 |
|
|
|
|
|
|
|
(105 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided from (used in) operations |
|
|
910 |
|
|
|
754 |
|
|
|
(601 |
) |
|
|
|
|
|
|
1,063 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investing activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Additions to property, plant and mine development |
|
|
|
|
|
|
(480 |
) |
|
|
(870 |
) |
|
|
|
|
|
|
(1,350 |
) |
Investments in marketable debt and equity securities |
|
|
|
|
|
|
|
|
|
|
(18 |
) |
|
|
|
|
|
|
(18 |
) |
Proceeds from sale of marketable debt and equity
securities |
|
|
|
|
|
|
|
|
|
|
50 |
|
|
|
|
|
|
|
50 |
|
Acquisitions, net |
|
|
|
|
|
|
(7 |
) |
|
|
(318 |
) |
|
|
|
|
|
|
(325 |
) |
Other |
|
|
|
|
|
|
26 |
|
|
|
|
|
|
|
|
|
|
|
26 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash used in investing activities of continued
operations |
|
|
|
|
|
|
(461 |
) |
|
|
(1,156 |
) |
|
|
|
|
|
|
(1,617 |
) |
Net cash (used in) provided from investing activities of
discontinued operations |
|
|
|
|
|
|
(15 |
) |
|
|
4 |
|
|
|
|
|
|
|
(11 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash used in investing activities |
|
|
|
|
|
|
(476 |
) |
|
|
(1,152 |
) |
|
|
|
|
|
|
(1,628 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financing activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net borrowings (repayments) |
|
|
755 |
|
|
|
(84 |
) |
|
|
(119 |
) |
|
|
|
|
|
|
552 |
|
Net intercompany (repayments) borrowings |
|
|
(1,566 |
) |
|
|
(125 |
) |
|
|
1,691 |
|
|
|
|
|
|
|
|
|
Dividends paid to common stockholders |
|
|
(136 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(136 |
) |
Dividends paid to noncontrolling interests in
subsidiaries |
|
|
|
|
|
|
(244 |
) |
|
|
(3 |
) |
|
|
|
|
|
|
(247 |
) |
Proceeds from stock issuance |
|
|
27 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
27 |
|
Change in restricted cash and other |
|
|
10 |
|
|
|
3 |
|
|
|
6 |
|
|
|
|
|
|
|
19 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash (used in) provided from financing activities of
continuing operations |
|
|
(910 |
) |
|
|
(450 |
) |
|
|
1,575 |
|
|
|
|
|
|
|
215 |
|
Net cash used in financing activities of discontinued
operations |
|
|
|
|
|
|
(3 |
) |
|
|
|
|
|
|
|
|
|
|
(3 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash (used in) provided from financing activities |
|
|
(910 |
) |
|
|
(453 |
) |
|
|
1,575 |
|
|
|
|
|
|
|
212 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect of exchange rate changes on cash |
|
|
|
|
|
|
(2 |
) |
|
|
(22 |
) |
|
|
|
|
|
|
(24 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net change in cash and cash equivalents |
|
|
|
|
|
|
(177 |
) |
|
|
(200 |
) |
|
|
|
|
|
|
(377 |
) |
Cash and cash equivalents at beginning of period |
|
|
|
|
|
|
789 |
|
|
|
441 |
|
|
|
|
|
|
|
1,230 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents at end of period |
|
$ |
|
|
|
$ |
612 |
|
|
$ |
241 |
|
|
$ |
|
|
|
$ |
853 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
39
NEWMONT MINING CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)
(dollars in millions, except per share, per ounce and per pound amounts)
NOTE 27 COMMITMENTS AND CONTINGENCIES
General
The Company follows loss contingency accounting guidance in determining its accruals and
disclosures with respect to loss contingencies other than tax contingencies provided for in
accordance with income tax accounting guidance (see Note 8). Accordingly, estimated losses from
loss contingencies are accrued by a charge to income when information available prior to issuance
of the financial statements indicates that it is probable (greater than a 75% probability) that a
liability could be incurred and the amount of the loss can be reasonably estimated. Legal expenses
associated with the contingency are expensed as incurred. If a loss contingency is not probable or
reasonably estimable, disclosure of the loss contingency is made in the financial statements when
it is at least reasonably possible that a material loss could be incurred.
Operating Segments
The Companys operating segments are identified in Note 25. Except as noted in this paragraph,
all of the Companys commitments and contingencies specifically described in this Note 27 relate to
the Corporate and Other reportable segment. The Nevada Operations matters under Newmont USA Limited
relate to the North America reportable segment. The PT Newmont Minahasa Raya matters relate to the
Asia Pacific reportable segment. The Yanacocha matters relate to the South America reportable
segment. The Newmont Yandal Operations Pty Limited matter relates to the Asia Pacific reportable
segment. The PTNNT matters relate to the Asia Pacific reportable segment.
Environmental Matters
The Companys mining and exploration activities are subject to various laws and regulations
governing the protection of the environment. These laws and regulations are continually changing
and are generally becoming more restrictive. The Company conducts its operations so as to protect
the public health and environment and believes its operations are in compliance with applicable
laws and regulations in all material respects. The Company has made, and expects to make in the
future, expenditures to comply with such laws and regulations, but cannot predict the full amount
of such future expenditures.
Estimated future reclamation costs are based principally on legal and regulatory requirements.
At September 30, 2008 and December 31, 2008, $624 and $594, respectively, were accrued for
reclamation costs relating to mineral properties in accordance with asset retirement obligation
accounting guidance. The current portions of $53 and $58 at September 30, 2009 and December 31,
2008, respectively, are included in Other current liabilities.
In addition, the Company is involved in several matters concerning environmental obligations
associated with former mining activities. Generally, these matters concern developing and
implementing remediation plans at the various sites involved. The Company believes that the related
environmental obligations associated with these sites are similar in nature with respect to the
development of remediation plans, their risk profile and the compliance required to meet general
environmental standards. Based upon the Companys best estimate of its liability for these matters,
$153 and $163 were accrued for such obligations at September 30, 2009 and December 31, 2008,
respectively. These amounts are included in Other current liabilities and Reclamation and
remediation liabilities. Depending upon the ultimate resolution of these matters, the Company
believes that it is reasonably possible that the liability for these matters could be as much as
135% greater or 7% lower than the amount accrued at September 30, 2009. The amounts accrued for
these matters are reviewed periodically based upon facts and circumstances available at the time.
Changes in estimates are recorded in Other expense, net in the period estimates are revised.
Details about certain of the more significant matters involved are discussed below.
Dawn Mining Company LLC (Dawn) 51% Newmont Owned
Midnite Mine Site. Dawn previously leased an open pit uranium mine, currently inactive, on
the Spokane Indian Reservation in the State of Washington. The mine site is subject to regulation
by agencies of the U.S. Department of Interior (the Bureau of Indian Affairs and the Bureau of Land
Management), as well as the United States Environmental Protection Agency (EPA).
40
NEWMONT MINING CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)
(dollars in millions, except per share, per ounce and per pound amounts)
In 1991, Dawns mining lease at the mine was terminated. As a result, Dawn was required to
file a formal mine closure and reclamation plan. The Department of Interior commenced an analysis
of Dawns proposed plan and alternate closure and reclamation plans for the mine. Work on this
analysis has been suspended indefinitely. In mid-2000, the mine was included on the National
Priorities List under the Comprehensive Environmental Response, Compensation and Liability Act
(CERCLA). In March 2003, the EPA notified Dawn and Newmont that it had thus far expended $12 on
the Remedial Investigation/Feasibility Study (RI/FS) under CERCLA. In October 2005, the EPA
issued the RI/FS on this property in which it indicated a preferred remedy that it estimated to
cost approximately $150. Newmont and Dawn filed comments on the RI/FS with the EPA in January 2006.
On October 3, 2006, the EPA issued a final Record of Decision in which it formally selected the
preferred remedy identified in the RI/FS.
On January 28, 2005, the EPA filed a lawsuit against Dawn and Newmont under CERCLA in the U.S.
District Court for the Eastern District of Washington. The EPA has asserted that Dawn and Newmont
are liable for reclamation or remediation work and costs at the mine. Dawn does not have sufficient
funds to pay for the reclamation plan it proposed or for any alternate plan, or for any additional
remediation work or costs at the mine.
On July 14, 2008, after a bench trial, the Court held Newmont liable under CERCLA as an
operator of the Midnite Mine. The Court previously ruled on summary judgment that both the U.S.
Government and Dawn were liable under CERCLA. On October 17, 2008 the Court issued its written
decision in the bench trial. The Court found Dawn and Newmont jointly and severally liable under
CERCLA for past and future response costs, and ruled that each of Dawn and Newmont are responsible
to pay one-third of such costs. The Court also found the U.S. Government liable on Dawns and
Newmonts contribution claim, and ruled that the U.S. Government is responsible to pay one-third of
all past and future response costs. In November 2008, all parties appealed the Courts ruling. Also
in November 2008, the EPA issued an Administrative Order pursuant to Section 106 of CERCLA ordering
Dawn and Newmont to conduct water treatment, testing and other preliminary remedial actions.
Newmont has initiated those preliminary remedial actions. However, the issue of whether the EPAs
current preferred remedy is consistent with the National Contingency Plan has not yet come before
the Court.
Newmont intends to continue to vigorously defend this matter and cannot reasonably predict the
outcome of this lawsuit or the likelihood of any other action against Dawn or Newmont arising from
this matter.
Dawn Mill Site. Dawn also owns a uranium mill site facility, located on private land near
Ford, Washington, which is subject to state and federal regulation. In late 1999, Dawn sought and
later received approval from the State of Washington for a revised closure plan that expedites the
reclamation process at the site. The currently approved plan for the site is guaranteed by Newmont.
Newmont Canada Limited (Newmont Canada) 100% Newmont Owned
On November 11, 2008, St. Andrew Goldfields Ltd. (St. Andrew) filed an Application in the
Superior Court of Justice in Ontario, Canada, seeking a declaration to clarify St. Andrews royalty
obligations regarding certain mineral rights and property formerly owned by Newmont Canada and now
owned by St. Andrew.
Newmont Canada purchased the property, called the Holt-McDermott property (Holt Property),
from Barrick Gold Corporation (Barrick) in October 2004. At that time, Newmont Canada entered
into a royalty agreement with Barrick (the Barrick Royalty), allowing Barrick to retain a royalty
on the Holt Property. In August 2006, Newmont Canada sold all of its interests in the Holt Property
to Holloway Mining Company (Holloway) in exchange for common stock issued by Holloway. In
September 2006, Newmont Canada entered into a purchase and sale agreement with St. Andrew (the
2006 Agreement), under which St. Andrew acquired all the common stock of Holloway. In 2008,
Barrick sold its Barrick Royalty to Royal Gold, Inc. (Royal Gold).
In the court proceedings, St. Andrew alleged that in the 2006 Agreement it only agreed to
assume royalty obligations equal to 0.013% of net smelter returns from operations on the Holt
Property. Such an interpretation of the 2006 Agreement would make Newmont responsible for any
royalties exceeding that amount payable to Royal Gold pursuant to the Barrick Royalty. On July 23,
2009, the Court issued a decision finding in favor of St. Andrews interpretation. On August 21,
2009, Newmont Canada appealed the decision. Newmont Canada intends to continue to vigorously defend
this matter but cannot reasonably predict the outcome.
41
NEWMONT MINING CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)
(dollars in millions, except per share, per ounce and per pound amounts)
Newmont Capital Limited (Newmont Capital) 100% Newmont Owned
In February 1999, the EPA placed the Lava Cap mine site in Nevada County, California on the
National Priorities List under CERCLA. The EPA then initiated a RI/FS under CERCLA to determine
environmental conditions and remediation options at the site.
Newmont Capital, formerly known as Franco-Nevada Mining Corporation, Inc., owned the property
for approximately three years from 1984 to 1986 but never mined or conducted exploration at the
site. The EPA asserts that Newmont Capital is responsible for clean up costs incurred at the site.
Newmont Capital and the EPA entered into a consent decree to settle all aspects of this matter
except future potential Natural Resource Damage claims. In February 2009, the U.S. District Court
for the Northern District of California approved the consent decree and the settlement was
completed.
Newmont USA Limited 100% Newmont Owned
Pinal Creek. Newmont is a defendant in a lawsuit brought on November 5, 1991 in U.S.
District Court in Arizona by the Pinal Creek Group, alleging that Newmont and others are
responsible for some portion of costs incurred to address groundwater contamination emanating from
copper mining operations located in the area of Globe and Miami, Arizona. Two former subsidiaries
of Newmont, Pinto Valley Copper Corporation and Magma Copper Company (now known as BHP Copper Inc.)
owned some of the mines in the area between 1983 and 1987. The court has dismissed plaintiffs
claims seeking to hold Newmont liable for the acts or omissions of its former subsidiaries. Newmont
believes it has strong defenses to plaintiffs remaining claims, including, without limitation that
Newmonts agents did not participate in any pollution causing activities; that Newmonts
liabilities, if any, were contractually transferred to one of the plaintiffs; that portions of
plaintiffs claimed damages are not recoverable; and that Newmonts equitable share of liability,
if any, would be immaterial. While Newmont has denied liability and is vigorously defending these
claims, it cannot reasonably predict the final outcome of this lawsuit.
Grass Valley. On February 3, 2004, the City of Grass Valley, California brought suit
against Newmont under CERCLA in the U.S. District Court for the Northern District of California.
This matter involves an abandoned mine adit on property previously owned by a predecessor of
Newmont and currently owned by the City of Grass Valley. The complaint alleges that the adit is
discharging metals-bearing water into a stream on the property, in concentrations in excess of
current EPA drinking water standards. On February 4, 2009, this matter was fully resolved by
settlement. Pursuant to the settlement, Newmont has agreed to manage the water discharge on an
ongoing basis.
Gray Eagle Mine Site. By letter dated September 3, 2002, the EPA notified Newmont that the
EPA had expended $3 in response costs to address environmental conditions associated with a
historic tailings pile located at the Grey Eagle Mine site near Happy Camp, California, and
requested that Newmont pay those costs. The EPA has identified four potentially responsible
parties, including Newmont. Newmont does not believe it has any liability for environmental
conditions at the Grey Eagle Mine site, and intends to vigorously defend any formal claims by the
EPA. Newmont cannot reasonably predict the likelihood or outcome of any future action against it
arising from this matter.
Ross-Adams Mine Site. By letter dated June 5, 2007, the U.S. Forest Service notified
Newmont that it had expended approximately $0.3 in response costs to address environmental
conditions at the Ross-Adams mine in Prince of Wales, Alaska, and requested Newmont USA Limited pay
those costs and perform an Engineering Evaluation/Cost Analysis (EE/CA) to assess what future
response activities might need to be completed at the site. Newmont does not believe it has any
liability for environmental conditions at the site, and intends to vigorously defend any formal
claims by the EPA. Newmont has agreed to perform the EE/CA. Newmont cannot reasonably predict the
likelihood or outcome of any future action against it arising from this matter.
42
NEWMONT MINING CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)
(dollars in millions, except per share, per ounce and per pound amounts)
PT Newmont Minahasa Raya (PTNMR) 80% Newmont Owned
In July 2004, a criminal complaint was filed against PTNMR, the Newmont subsidiary that
operated the Minahasa mine in Indonesia, alleging environmental pollution relating to submarine
tailings placement into nearby Buyat Bay. The Indonesian police detained five PTNMR employees
during September and October of 2004. The police investigation and the detention of PTNMRs
employees was declared illegal by the South Jakarta District Court in December 2004, but in March
2005, the Indonesian Supreme Court upheld the legality of the police investigation, and the police
turned their
evidence over to the local prosecutor. In July 2005, the prosecutor filed an indictment
against PTNMR and its President Director, alleging environmental pollution at Buyat Bay. After the
court rejected motions to dismiss the proceeding, the trial proceeded and all evidence, including
that of the defense, was presented in court by September 2006. In November 2006 the prosecution
filed its charge, seeking a three-year jail sentence for PTNMRs President Director plus a nominal
fine. In addition, the prosecution recommended a nominal fine against PTNMR. The defense filed
responses in January 2007, and final briefing was completed in March 2007. On April 24, 2007, the
court entered its verdict acquitting PTNMR and its President Director of all charges. In May 2007,
the prosecution appealed the decision of the court to the Indonesian Supreme Court, despite
Indonesian laws that prohibit the appeal of a verdict of acquittal. In October 2008, a panel of
Supreme Court justices was assigned to consider the appeal. In April 2009, the Indonesian Supreme
Court summarily dismissed the appeal of the prosecutor related to PTNMR and its President Director.
In addition, on March 22, 2007, an Indonesian non-governmental organization named Wahana
Lingkungan Hidup Indonesia (WALHI) filed a civil suit against PTNMR and Indonesias Ministry of
Energy and Mineral Resources and Ministry for the Environment, alleging pollution from the disposal
of mine tailings into Buyat Bay, and seeking a court order requiring PTNMR to fund a 25-year
monitoring program in relation to Buyat Bay. In December 2007, the court ruled in PTNMRs favor and
found that WALHIs allegations of pollution in Buyat Bay were without merit. In March 2008, WALHI
appealed this decision to the Indonesian Supreme Court.
Independent sampling and testing of Buyat Bay water and fish, as well as area residents,
conducted by the World Health Organization and the Australian Commonwealth Scientific and
Industrial Research Organization, confirm that PTNMR has not polluted the Buyat Bay environment,
and, therefore, has not adversely affected the fish in Buyat Bay or the health of nearby residents.
The Company remains steadfast that it has not caused pollution or health problems.
Other Legal Matters
Minera Yanacocha S.R.L. (Yanacocha) 51.35% Newmont Owned
Choropampa. In June 2000, a transport contractor of Yanacocha spilled approximately 151
kilograms of elemental mercury near the town of Choropampa, Peru, which is located 53 miles (85
kilometers) southwest of the Yanacocha mine. Elemental mercury is not used in Yanacochas
operations but is a by-product of gold mining and was sold to a Lima firm for use in medical
instruments and industrial applications. A comprehensive health and environmental remediation
program was undertaken by Yanacocha in response to the incident. In August 2000, Yanacocha paid
under protest a fine of 1,740,000 Peruvian soles (approximately $0.5) to the Peruvian government.
Yanacocha has entered into settlement agreements with a number of individuals impacted by the
incident. As compensation for the disruption and inconvenience caused by the incident, Yanacocha
entered into agreements with and provided a variety of public works in the three communities
impacted by this incident. Yanacocha cannot predict the likelihood of additional expenditures
related to this matter.
Yanacocha, various wholly-owned subsidiaries of Newmont, and other defendants have been named
in lawsuits filed by approximately 1,100 Peruvian citizens in Denver District Court for the State
of Colorado. These actions seek compensatory damages based on claims associated with the elemental
mercury spill incident. The parties in these cases agreed to submit these matters to binding
arbitration. In October 2007, the parties to the arbitration entered a court-approved settlement
agreement, resolving most of these cases. In April 2009, all remaining matters were settled.
Additional lawsuits relating to the Choropampa incident were filed against Yanacocha in the
local courts of Cajamarca, Peru, in May 2002 by over 900 Peruvian citizens. A significant number of
the plaintiffs in these lawsuits entered into settlement agreements with Yanacocha prior to filing
such claims. In April 2008, the Peruvian Supreme Court upheld the validity of these settlement
agreements, which should result in the dismissal of all claims brought by previously settled
plaintiffs. Yanacocha has also entered into settlement agreements with approximately 350 additional
plaintiffs. The claims asserted by approximately 200 plaintiffs remain. Neither Newmont nor
Yanacocha can reasonably estimate the ultimate loss relating to such claims.
43
NEWMONT MINING CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)
(dollars in millions, except per share, per ounce and per pound amounts)
Conga. Yanacocha is involved in a dispute with the Provincial Municipality of Celendin
regarding the authority of that governmental body to regulate the development of the Conga project.
In the fourth quarter of 2004, the Municipality of Celendin enacted an ordinance declaring the area
around Conga to be a mining-free reserve and naturally protected area. Yanacocha challenged this
ordinance by means of two legal actions, one filed by Yanacocha (as the lease holder of the
Conga mining concessions) and one filed by Minera Chaupiloma (as the titleholder of the Conga
mining concessions). In August 2007, a Peruvian Court of first instance upheld Chaupilomas claim,
stating that the Municipality of Celendin lacks the authority to create natural protected areas.
The Municipality of Celendin has not appealed the ruling. In July 2008, a Peruvian Court of first
instance dismissed Yanacochas claim as groundless. Yanacocha appealed the ruling to the appellate
Court in Lima, and in January 2009, the appellate Court in Lima reversed the lower Court ruling and
upheld Yanacochas claim.
Newmont Yandal Operations Pty Ltd (NYOL) 100% Newmont Owned
On September 3, 2003, J. Aron & Co. commenced proceedings in the Supreme Court of New South
Wales (Australia) against NYOL, its subsidiaries and the administrator in relation to the completed
voluntary administration of the NYOL group. J. Aron & Co., a NYOL creditor, initially sought
injunctive relief that was denied by the court on September 8, 2003. On October 30, 2003, J. Aron &
Co. filed a statement of claim alleging various deficiencies in the implementation of the voluntary
administration process and seeking damages and other relief against NYOL and other parties. Newmont
cannot reasonably predict the final outcome of this lawsuit.
PT Newmont Nusa Tenggara (PTNNT) 45% Newmont Owned
Under the Batu Hijau Contract of Work, beginning in 2006 and continuing through 2010, a
portion of PTNNTs shares must be offered for sale, first, to the Indonesian government or, second,
to Indonesian nationals, equal to the difference between the following percentages and the
percentage of shares already owned by the Indonesian government or Indonesian nationals (if such
number is positive): 23% by March 31, 2006; 30% by March 31, 2007; 37% by March 31, 2008; 44% by
March 31, 2009; and 51% by March 31, 2010. As PT Pukuafu Indah (PTPI), an Indonesian national,
has owned and continues to own a 20% interest in PTNNT, in 2006 a 3% interest was required to be
offered for sale and in each of 2007 through 2010 an additional 7% interest must be offered (for an
aggregate 31% interest). The price at which such interest must be offered for sale to the
Indonesian parties is the highest of the then-current replacement cost, the price at which shares
would be accepted for listing on the Indonesian Stock Exchange, or the fair market value of such
interest as a going concern, as agreed with the Indonesian government. Pursuant to this provision,
it is possible that the ownership interest of NTP in PTNNT could be reduced to 49% or that
subsequent disputes could arise concerning the divestiture of the ownership interest of NTP in
PTNNT.
Initial arbitration matter
PTPI has owned and continues to own a 20% interest in PTNNT, and therefore the
Newmont-Sumitomo partnership was required to offer a 3% interest in PTNNT for sale in 2006 and an
additional 7% interest in each of 2007 through 2010. In accordance with the Contract of Work, an
offer to sell a 3% interest was made to the Indonesian government in 2006 and an offer for an
additional 7% interest was made in each of 2007 and 2008. A further 7% interest in the shares of
PTNNT was offered for sale in March 2009. While the central government declined to participate in
the 2006 and 2007 offers, local governments in the area in which the Batu Hijau mine is located
expressed interest in acquiring shares, as did various Indonesian nationals. In January 2008, the
Newmont-Sumitomo partnership agreed to sell, under a carried interest arrangement, 2% of PTNNTs
shares to Kabupaten Sumbawa, one of the local governments, subject to satisfaction of closing
conditions. The Indonesian government subsequently stated that it would not approve the transfer of
shares under this agreement. On February 11, 2008, PTNNT received notification from the Department
of Energy and Mineral Resources (DEMR) alleging that PTNNT is in breach of its divestiture
requirements under the Contract of Work, and threatening to issue a notice to terminate the
Contract of Work if PTNNT did not agree to divest the 2006 and 2007 shares, in accordance with the
direction of the DEMR, by February 22, 2008, which date was extended to March 3, 2008. A second
Notice of Default was received relating to the alleged failure to divest the 2008 shares as well.
On March 3, 2008, the Indonesian government filed for international arbitration as provided under
the Contract of Work, as did PTNNT. In the arbitration proceeding, PTNNT sought a declaration that
the Indonesian government is not entitled to terminate the Contract of Work and additional
declarations pertaining to the procedures for divesting the shares. For its part, the Indonesian
government sought declarations that PTNNT is in default of its divestiture obligations, that the
government may terminate the Contract of Work and recover damages for breach of the Contract of
Work, and that PTNNT must cause shares subject to divestiture to be sold to certain local
governments.
44
NEWMONT MINING CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)
(dollars in millions, except per share, per ounce and per pound amounts)
Second arbitration matter
In 1997, to enable development of the Batu Hijau mine, PTNNT secured an aggregate $1,000 in
financing from the United States Export-Import Bank, the Japan Bank for International Cooperation
(formerly the Japan Export-Import Bank), and Kreditanstalt fur Wiederaufbau (the German
Export-Import Bank) (collectively, the Senior Lenders). The Senior Lenders required the
shareholders of PTNNT to pledge 100% of the shares of PTNNT as security for repayment of the loans.
As part of that process, on October 30, 1997, the Minister of Energy and Mineral Resources approved
the share pledge arrangements.
Subsequent to an additional 7% interest in PTNNT being offered by NTP for sale on March 28,
2008 (as required under the Contract of Work), the Director General of Mineral, Coal and Geothermal
Resources at DEMR claimed that PTNNT breached its obligations under the Contract of Work by
allowing shares to be offered for sale that are pledged to the Senior Lenders as security for the
repayment of the senior debt. In the letter, the Director General claimed that NTP would be in
default under the Contract of Work if the shares of PTNNT offered for sale in March 2008, together
with the shares offered in 2006 and 2007, were not in the possession of Indonesian government
and/or government owned entities, free of any such senior pledge, by July 13, 2008. Consequently,
on July 10, 2008, PTNNT filed a notice to commence an additional international arbitration
proceeding, as provided for under the Contract of Work, to resolve the claim that PTNNT breached
its obligations under the Contract of Work by allowing shares to be offered that are subject to
pledge obligations to the Senior Lenders. This issue was incorporated into and resolved as part of
the initial arbitration proceeding.
An international arbitration panel was appointed to resolve these claims and a hearing was
held in Jakarta in December 2008. On March 31, 2009, the arbitration panel issued its Final Award
and decision on the matter. In its decision, the arbitration panel determined that PTNNTs foreign
shareholders had not complied with the divestiture procedure required by the Contract of Work in
2006 and 2007, but the panel ruled that the Indonesian government is not entitled to immediately
terminate the Contract of Work and the panel rejected the Indonesian governments claim for
damages. The Arbitration Panel granted PTNNT 180 days from the date of notification of the Final
Award to transfer the 2006 3% interest and the 2007 7% interest in PTNNT to the local governments
or their respective nominees. The Arbitration Panel also applied a 180-day cure period to the 2008
7% interest, ruling that PTNNT must (within such 180-day period) offer the 2008 7% interest to the
Indonesian government or its nominee, and transfer such shares if, after agreement on the transfer
price, the Indonesian government invokes its right of first refusal under the Contract of Work. The
panel ruled that shares offered to the Indonesian government pursuant to the Contract of Work must
be offered free of any pledge or obligation to re-pledge the shares to the Senior Lenders. Finally,
the Panel directed PTNNT to pay to the Indonesian government an allocated portion of certain legal
fees and costs of the arbitration. PTNNT submitted payment of $2 for legal fees and costs. The
Company also entered a formal agreement with the Senior Lenders under which the Senior Lenders
released the pledge on the aggregated 31% of shares in PTNNT that are subject to divestiture
requirements in exchange for the Company and Sumitomo agreeing to provide joint and several
guarantees, thus allowing the Company to transfer these shares free of any pledge or obligation to
re-pledge the shares to the lenders. As discussed in Note 22, the Company subsequently replaced
this joint and several guarantee in October with letters of credit supporting 56.25% of the
obligations under the PTNNT project financing facility. On July 14, 2009, the Company reached
agreement with the Indonesian government on the price of the 2008 7% interest and the 2009 7%
interest. PTNNT has reoffered the 2008 7% interest and the 2009 7% interest to the Indonesian
government at this newly agreed price. In September 2009, the deadline for completion of transfer
of the 2006 3% interest, the 2007 7% interest and the 2008 7% interest was extended to November 12,
2009 by agreement between PTNNT and the Indonesian Government. This date coincides with the
deadline for the sale and transfer of the 2009 7% interest. The Company cannot predict the outcome
of these discussions. Subsequent disputes may arise concerning the divestiture of the shares
including if the transfer is not completed to the satisfaction of the parties within the period
described above.
45
NEWMONT MINING CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)
(dollars in millions, except per share, per ounce and per pound amounts)
Other Commitments and Contingencies
Tax contingencies are provided for under income tax accounting guidance (see Note 8).
In a 1993 asset exchange, a wholly-owned subsidiary transferred a coal lease under which the
subsidiary had collected advance royalty payments totaling $484. From 1994 to 2018, remaining
advance payments under the lease to the transferee total $390. In the event of title failure as
stated in the lease, this subsidiary has a primary obligation to refund previously collected
payments and has a secondary obligation to refund any of the $390 collected by the transferee, if
the transferee fails to meet its refund obligation. The subsidiary has title insurance on the
leased coal deposits of $240 covering the secondary obligation. The Company and the subsidiary
regard the circumstances entitling the lessee to a refund as remote.
The Company has minimum royalty obligations on one of its producing mines in Nevada for the
life of the mine. Amounts paid as a minimum royalty (where production royalties are less than the
minimum obligation) in any year are recoverable in future years when the minimum royalty obligation
is exceeded. Although the minimum royalty requirement may not be met in a particular year, the
Company expects that over the mine life, gold production will be sufficient to meet the minimum
royalty requirements. Minimum royalty payments payable are $29 in 2009, $23 in 2010 through 2013
and $140 thereafter.
As part of its ongoing business and operations, the Company and its affiliates are required to
provide surety bonds, bank letters of credit and bank guarantees as financial support for various
purposes, including environmental reclamation, exploration permitting, workers compensation
programs and other general corporate purposes. At September 30, 2009 and December 31, 2008, there
were $872 and $778, respectively, of outstanding letters of credit, surety bonds and bank
guarantees. The surety bonds, letters of credit and bank guarantees reflect fair value as a
condition of their underlying purpose and are subject to fees competitively determined in the
market place. The obligations associated with these instruments are generally related to
performance requirements that the Company addresses through its ongoing operations. As the specific
requirements are met, the beneficiary of the associated instrument cancels and/or returns the
instrument to the issuing entity. Certain of these instruments are associated with operating sites
with long-lived assets and will remain outstanding until closure. Generally, bonding requirements
associated with environmental regulation are becoming more restrictive. In addition, the surety
markets for certain types of environmental bonding used by the Company have become increasingly
constrained. The Company, however, believes it is in compliance with all applicable bonding
obligations and will be able to satisfy future bonding requirements, through existing or
alternative means, as they arise.
Newmont is from time to time involved in various legal proceedings related to its business.
Except in the above-described proceedings, management does not believe that adverse decisions in
any pending or threatened proceeding or that amounts that may be required to be paid by reason
thereof will have a material adverse effect on the Companys financial condition or results of
operations.
NOTE 28 SUPPLEMENTARY DATA
Ratio of Earnings to Fixed Charges
The ratio of earnings to fixed charges for the nine months ended September 30, 2009 was 11.5.
The ratio of earnings to fixed charges represents income from continuing operations before income
tax expense, equity loss of affiliates and noncontrolling interests in subsidiaries, divided by
interest expense. Interest expense includes amortization of capitalized interest and the portion of
rent expense representative of interest. Interest expense does not include interest on income tax
liabilities. The computation of the ratio of earnings to fixed charges can be found in Exhibit
12.1.
46
|
|
|
ITEM 2. MANAGEMENTS DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS AND
FINANCIAL CONDITION (dollars in millions, except per share, per
ounce and per pound amounts). |
The following discussion provides information that management believes is relevant to an
assessment and understanding of the consolidated financial condition and results of operations of
Newmont Mining Corporation and its subsidiaries (collectively, Newmont, the Company, our and
we). References to A$ refer to Australian currency, C$ to Canadian currency, IDR to
Indonesian currency, NZ$ to New Zealand currency and $ to United States currency.
This item should be read in conjunction with our interim unaudited Condensed Consolidated
Financial Statements and the notes thereto included in this quarterly report. Additionally, the
following discussion and analysis should be read in conjunction with Managements Discussion and
Analysis of Consolidated Financial Condition and Results of Operations and the consolidated
financial statements included in Item 8 of our Form 8-K for the year ended December 31, 2008 filed
on September 15, 2009.
Selected Financial and Operating Results
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
Nine Months Ended |
|
|
|
September 30, |
|
|
September 30, |
|
|
|
2009 |
|
|
2008 |
|
|
2009 |
|
|
2008 |
|
Revenues |
|
$ |
2,049 |
|
|
$ |
1,371 |
|
|
$ |
5,187 |
|
|
$ |
4,799 |
|
Income from continuing operations |
|
$ |
645 |
|
|
$ |
215 |
|
|
$ |
1,242 |
|
|
$ |
1,101 |
|
Net income |
|
$ |
645 |
|
|
$ |
222 |
|
|
$ |
1,228 |
|
|
$ |
1,118 |
|
Net income attributable to Newmont stockholders |
|
$ |
388 |
|
|
$ |
191 |
|
|
$ |
739 |
|
|
$ |
827 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per common share, basic |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations attributable to
Newmont stockholders |
|
$ |
0.79 |
|
|
$ |
0.40 |
|
|
$ |
1.54 |
|
|
$ |
1.78 |
|
Net income attributable to Newmont stockholders |
|
$ |
0.79 |
|
|
$ |
0.42 |
|
|
$ |
1.52 |
|
|
$ |
1.82 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated gold ounces sold (thousands) (1) |
|
|
1,715 |
|
|
|
1,485 |
|
|
|
4,734 |
|
|
|
4,569 |
|
Consolidated copper pounds sold (millions) |
|
|
141 |
|
|
|
44 |
|
|
|
342 |
|
|
|
201 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average price received, net (2) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gold (per ounce) |
|
$ |
964 |
|
|
$ |
865 |
|
|
$ |
930 |
|
|
$ |
900 |
|
Copper (per pound) |
|
$ |
2.80 |
|
|
$ |
2.01 |
|
|
$ |
2.30 |
|
|
$ |
3.50 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs applicable to sales (3) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gold (per ounce) |
|
$ |
404 |
|
|
$ |
467 |
|
|
$ |
419 |
|
|
$ |
433 |
|
Copper (per pound) |
|
$ |
0.50 |
|
|
$ |
1.98 |
|
|
$ |
0.63 |
|
|
$ |
1.70 |
|
|
|
|
(1) |
|
Includes incremental start-up ounces of nil and 1 in the three and nine months ended
September 30, 2009 and 3 and 20 in the three and nine months ended September 30, 2008,
respectively. |
|
(2) |
|
After treatment and refining charges. |
|
(3) |
|
Excludes Amortization and Accretion. |
Consolidated Financial Results
Net income attributable to Newmont stockholders for the third quarter of 2009 was $388, or
$0.79 per share, compared to $191, or $0.42 per share in 2008. Results for the third quarter of
2009 compared to 2008 were impacted by increased gold and copper sales volumes, higher realized
gold and copper prices and lower costs. Net income attributable
to Newmont stockholders for the
first nine months of 2009 was $739, or $1.52 per share, compared to $827, or $1.82 per share in
2008. Results for the first nine months of 2009 compared to 2008 were impacted by higher gold and
copper sales volumes, higher realized gold prices and lower costs, partially offset by lower
realized copper prices. The Net income attributable to Newmont
stockholders per share for the three and nine
months ended September 30, 2009, compared to the same periods for 2008, reflect higher average
shares outstanding due to the issuance of 34,500,000 shares in February 2009.
47
Sales gold, net for the third quarter of 2009 increased $372 compared to the third quarter
of 2008 as a result of a 233,000 increase in consolidated gold ounces sold and a $99 per ounce
increase in the average realized price after treatment and refining charges. Sales gold, net for
the first nine months of 2009 increased $307 compared to the first nine months of 2008 as a result
of a 184,000 increase in consolidated gold ounces sold and a $30 per ounce increase in the average
price realized after treatment and refining charges. The following analysis summarizes the change
in consolidated gold sales revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
Nine Months Ended |
|
|
|
September 30, |
|
|
September 30, |
|
|
|
2009 |
|
|
2008 |
|
|
2009 |
|
|
2008 |
|
Consolidated gold sales: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross |
|
$ |
1,660 |
|
|
$ |
1,282 |
|
|
$ |
4,421 |
|
|
$ |
4,106 |
|
Less: Treatment and refining charges |
|
|
(7 |
) |
|
|
(1 |
) |
|
|
(20 |
) |
|
|
(12 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net |
|
$ |
1,653 |
|
|
$ |
1,281 |
|
|
$ |
4,401 |
|
|
$ |
4,094 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated gold ounces sold (thousands): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross |
|
|
1,715 |
|
|
|
1,485 |
|
|
|
4,734 |
|
|
|
4,569 |
|
Less: Incremental start-up sales |
|
|
|
|
|
|
(3 |
) |
|
|
(1 |
) |
|
|
(20 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net |
|
|
1,715 |
|
|
|
1,482 |
|
|
|
4,733 |
|
|
|
4,549 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average realized price (per ounce): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Before treatment and refining charges |
|
$ |
968 |
|
|
$ |
866 |
|
|
$ |
934 |
|
|
$ |
903 |
|
After treatment and refining charges |
|
$ |
964 |
|
|
$ |
865 |
|
|
$ |
930 |
|
|
$ |
900 |
|
The change in consolidated gold sales is due to:
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
Nine Months Ended |
|
|
|
September 30, |
|
|
September 30, |
|
|
|
2009 vs. 2008 |
|
|
2009 vs. 2008 |
|
Increase in consolidated ounces sold |
|
$ |
203 |
|
|
$ |
166 |
|
Increase in average realized gold price |
|
|
175 |
|
|
|
149 |
|
Increase in treatment and refining charges |
|
|
(6 |
) |
|
|
(8 |
) |
|
|
|
|
|
|
|
|
|
$ |
372 |
|
|
$ |
307 |
|
|
|
|
|
|
|
|
Sales copper, net for the third quarter of 2009 increased $306 compared to the third quarter
of 2008 due to higher sales volume and higher realized prices. Sales copper, net for the first
nine months of 2009 increased $81 compared to the first nine months of 2008 due to higher sales
volume, partially offset by lower realized prices. The following analysis summarizes the change in
consolidated copper sales revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
Nine Months Ended |
|
|
|
September 30, |
|
|
September 30, |
|
|
|
2009 |
|
|
2008 |
|
|
2009 |
|
|
2008 |
|
Consolidated copper sales: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross before provisional pricing |
|
$ |
386 |
|
|
$ |
151 |
|
|
$ |
763 |
|
|
$ |
726 |
|
Provisional pricing mark-to-market gain (loss) |
|
|
48 |
|
|
|
(52 |
) |
|
|
112 |
|
|
|
38 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross after provisional pricing |
|
|
434 |
|
|
|
99 |
|
|
|
875 |
|
|
|
764 |
|
Less: Treatment and refining charges |
|
|
(38 |
) |
|
|
(9 |
) |
|
|
(89 |
) |
|
|
(59 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net |
|
$ |
396 |
|
|
$ |
90 |
|
|
$ |
786 |
|
|
$ |
705 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated copper pounds sold (millions) |
|
|
141 |
|
|
|
44 |
|
|
|
342 |
|
|
|
201 |
|
|
Average price realized (per pound): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross before provisional pricing |
|
$ |
2.73 |
|
|
$ |
3.39 |
|
|
$ |
2.23 |
|
|
$ |
3.61 |
|
Provisional pricing mark-to-market gain (loss) |
|
|
0.34 |
|
|
|
(1.18 |
) |
|
|
0.33 |
|
|
|
0.19 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross after provisional pricing |
|
|
3.07 |
|
|
|
2.21 |
|
|
|
2.56 |
|
|
|
3.80 |
|
Less: Treatment and refining charges |
|
|
(0.27 |
) |
|
|
(0.20 |
) |
|
|
(0.26 |
) |
|
|
(0.30 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net |
|
$ |
2.80 |
|
|
$ |
2.01 |
|
|
$ |
2.30 |
|
|
$ |
3.50 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
48
The change in consolidated copper sales is due to:
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
Nine Months Ended |
|
|
|
September 30, |
|
|
September 30, |
|
|
|
2009 vs. 2008 |
|
|
2009 vs. 2008 |
|
Increase in consolidated pounds sold |
|
$ |
214 |
|
|
$ |
537 |
|
Increase (decrease) in average realized copper price |
|
|
121 |
|
|
|
(426 |
) |
Increase in treatment and refining charges |
|
|
(29 |
) |
|
|
(30 |
) |
|
|
|
|
|
|
|
|
|
$ |
306 |
|
|
$ |
81 |
|
|
|
|
|
|
|
|
The following is a summary of net gold and copper sales:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
Nine Months Ended |
|
|
|
September 30, |
|
|
September 30, |
|
|
|
2009 |
|
|
2008 |
|
|
2009 |
|
|
2008 |
|
Gold |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North America: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nevada |
|
$ |
481 |
|
|
$ |
471 |
|
|
$ |
1,321 |
|
|
$ |
1,457 |
|
La Herradura |
|
|
23 |
|
|
|
19 |
|
|
|
75 |
|
|
|
64 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
504 |
|
|
|
490 |
|
|
|
1,396 |
|
|
|
1,521 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
South America: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Yanacocha |
|
|
535 |
|
|
|
378 |
|
|
|
1,451 |
|
|
|
1,265 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asia Pacific: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Jundee |
|
|
103 |
|
|
|
94 |
|
|
|
293 |
|
|
|
282 |
|
Tanami |
|
|
61 |
|
|
|
75 |
|
|
|
220 |
|
|
|
249 |
|
Kalgoorlie |
|
|
91 |
|
|
|
69 |
|
|
|
223 |
|
|
|
189 |
|
Waihi |
|
|
27 |
|
|
|
35 |
|
|
|
78 |
|
|
|
95 |
|
Batu Hijau |
|
|
201 |
|
|
|
23 |
|
|
|
358 |
|
|
|
171 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
483 |
|
|
|
296 |
|
|
|
1,172 |
|
|
|
986 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Africa: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ahafo |
|
|
131 |
|
|
|
117 |
|
|
|
382 |
|
|
|
321 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate and other |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
1,653 |
|
|
$ |
1,281 |
|
|
$ |
4,401 |
|
|
$ |
4,094 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Copper |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asia Pacific: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Batu Hijau |
|
$ |
396 |
|
|
$ |
90 |
|
|
$ |
786 |
|
|
$ |
705 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs applicable to sales decreased in the third quarter and first nine months of 2009 from
2008 as detailed in the table below. The decrease in the third quarter and first nine months of
2009 is due to lower waste tons mined and lower diesel prices, partially offset by increased gold
and copper sales volumes.
Amortization increased in the third quarter and first nine months of 2009 compared to 2008,
due to increased gold and copper sales volumes as detailed in the table below. We expect
Amortization expense in 2009 to be approximately $740 to $760.
49
The following is a summary of Costs applicable to sales and Amortization:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs Applicable to Sales |
|
|
Amortization |
|
|
|
Three Months Ended |
|
|
Nine Months Ended |
|
|
Three Months Ended |
|
|
Nine Months Ended |
|
|
|
September 30, |
|
|
September 30, |
|
|
September 30, |
|
|
September 30, |
|
|
|
2009 |
|
|
2008 |
|
|
2009 |
|
|
2008 |
|
|
2009 |
|
|
2008 |
|
|
2009 |
|
|
2008 |
|
Gold |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North America: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nevada |
|
$ |
273 |
|
|
$ |
271 |
|
|
$ |
764 |
|
|
$ |
724 |
|
|
$ |
69 |
|
|
$ |
65 |
|
|
$ |
183 |
|
|
$ |
175 |
|
Hope Bay |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3 |
|
|
|
|
|
|
|
9 |
|
|
|
|
|
La Herradura |
|
|
8 |
|
|
|
9 |
|
|
|
30 |
|
|
|
27 |
|
|
|
2 |
|
|
|
2 |
|
|
|
7 |
|
|
|
6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
281 |
|
|
|
280 |
|
|
|
794 |
|
|
|
751 |
|
|
|
74 |
|
|
|
67 |
|
|
|
199 |
|
|
|
181 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
South America: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Yanacocha |
|
|
163 |
|
|
|
159 |
|
|
|
488 |
|
|
|
488 |
|
|
|
43 |
|
|
|
43 |
|
|
|
128 |
|
|
|
131 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asia Pacific: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Jundee |
|
|
33 |
|
|
|
44 |
|
|
|
103 |
|
|
|
126 |
|
|
|
12 |
|
|
|
9 |
|
|
|
33 |
|
|
|
26 |
|
Tanami |
|
|
45 |
|
|
|
55 |
|
|
|
146 |
|
|
|
162 |
|
|
|
10 |
|
|
|
10 |
|
|
|
32 |
|
|
|
27 |
|
Kalgoorlie |
|
|
60 |
|
|
|
63 |
|
|
|
151 |
|
|
|
171 |
|
|
|
5 |
|
|
|
4 |
|
|
|
11 |
|
|
|
12 |
|
Waihi |
|
|
14 |
|
|
|
16 |
|
|
|
38 |
|
|
|
45 |
|
|
|
5 |
|
|
|
10 |
|
|
|
18 |
|
|
|
24 |
|
Batu Hijau |
|
|
37 |
|
|
|
20 |
|
|
|
88 |
|
|
|
76 |
|
|
|
10 |
|
|
|
4 |
|
|
|
23 |
|
|
|
15 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
189 |
|
|
|
198 |
|
|
|
526 |
|
|
|
580 |
|
|
|
42 |
|
|
|
37 |
|
|
|
117 |
|
|
|
104 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Africa: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ahafo |
|
|
61 |
|
|
|
55 |
|
|
|
175 |
|
|
|
150 |
|
|
|
17 |
|
|
|
16 |
|
|
|
51 |
|
|
|
47 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
694 |
|
|
|
692 |
|
|
|
1,983 |
|
|
|
1,969 |
|
|
|
176 |
|
|
|
163 |
|
|
|
495 |
|
|
|
463 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Copper |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asia Pacific: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Batu Hijau |
|
|
71 |
|
|
|
88 |
|
|
|
217 |
|
|
|
342 |
|
|
|
18 |
|
|
|
16 |
|
|
|
55 |
|
|
|
67 |
|
|
|
|
|
|
|