FORM 10-Q
Table of Contents

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D. C. 20549

 

 

Form 10-Q

 

 

(Mark One)

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Quarterly Period Ended March 31, 2013

or

 

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from              to             

Commission File Number: 001-31240

 

 

 

LOGO

NEWMONT MINING CORPORATION

(Exact name of registrant as specified in its charter)

 

 

 

Delaware   84-1611629

(State or Other Jurisdiction of

Incorporation or Organization)

 

(I.R.S. Employer

Identification No.)

6363 South Fiddler’s Green Circle  
Greenwood Village, Colorado   80111
(Address of Principal Executive Offices)   (Zip Code)

Registrant’s telephone number, including area code (303) 863-7414

 

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    x  Yes    ¨  No

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    x  Yes    ¨  No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12-b2 of the Exchange Act.

 

(Check one):   Large accelerated filer   x    Accelerated filer   ¨
  Non-accelerated filer   ¨  (Do not check if a smaller reporting company.)    Smaller reporting company   ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12-b2 of the Exchange Act).    ¨  Yes    x  No

There were 492,319,340 shares of common stock outstanding on April 22, 2013 (and 4,893,906 exchangeable shares).

 

 

 


Table of Contents

TABLE OF CONTENTS

 

         Page  
  PART I   

ITEM 1.

  FINANCIAL STATEMENTS      1   
  Condensed Consolidated Statements of Income      1   
  Condensed Consolidated Statements of Comprehensive Income      2   
  Condensed Consolidated Statements of Cash Flows      3   
  Condensed Consolidated Balance Sheets      4   
  Notes to Condensed Consolidated Financial Statements      5   

ITEM 2.

  MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS      38   
  Overview      38   
  Selected Financial and Operating Results      40   
  Consolidated Financial Results      41   
  Results of Consolidated Operations      46   
  Liquidity and Capital Resources      49   
  Environmental      52   
  Accounting Developments      52   
  Non-GAAP Financial Measures      53   
  Safe Harbor Statement      56   

ITEM 3.

  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK      56   

ITEM 4.

  CONTROLS AND PROCEDURES      59   
  PART II   

ITEM 1.

  LEGAL PROCEEDINGS      60   

ITEM 1A.

  RISK FACTORS      60   

ITEM 2.

  ISSUER PURCHASES OF EQUITY SECURITIES      60   

ITEM 3.

  DEFAULTS UPON SENIOR SECURITIES      60   

ITEM 4.

  MINE SAFETY DISCLOSURES      60   

ITEM 5.

  OTHER INFORMATION      61   

ITEM 6.

  EXHIBITS      61   

SIGNATURES

     62   

EXHIBIT INDEX

     63   


Table of Contents

PART I—FINANCIAL INFORMATION

ITEM 1.    FINANCIAL STATEMENTS.

NEWMONT MINING CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(unaudited, in millions except per share)

 

     Three Months Ended  
     March 31,  
     2013     2012  

Sales (Note 3)

   $ 2,177     $ 2,683  

Costs and expenses

    

Costs applicable to sales (1) (Note 3)

     1,044       1,017  

Amortization (Note 3)

     267       231  

Reclamation and remediation (Note 4)

     18       16  

Exploration

     59       88  

Advanced projects, research and development

     52       102  

General and administrative

     56       54  

Other expense, net (Note 5)

     100       120  
  

 

 

   

 

 

 
     1,596       1,628  
  

 

 

   

 

 

 

Other income (expense)

    

Other income, net (Note 6)

     26       33  

Interest expense, net

     (65     (52
  

 

 

   

 

 

 
     (39     (19
  

 

 

   

 

 

 

Income before income and mining tax and other items

     542       1,036  

Income and mining tax expense (Note 7)

     (181     (343

Equity income (loss) of affiliates

     (4     (19
  

 

 

   

 

 

 

Income from continuing operations

     357       674  

Income (loss) from discontinued operations (Note 8)

     —         (71
  

 

 

   

 

 

 

Net income

     357       603  

Net income attributable to noncontrolling interests (Note 9)

     (42     (113
  

 

 

   

 

 

 

Net income attributable to Newmont stockholders

   $ 315     $ 490  
  

 

 

   

 

 

 

Net income attributable to Newmont stockholders:

    

Continuing operations

   $ 315     $ 561  

Discontinued operations

     —         (71
  

 

 

   

 

 

 
   $ 315     $ 490  
  

 

 

   

 

 

 

Income per common share (Note 10)

    

Basic:

    

Continuing operations

   $ 0.63     $ 1.13  

Discontinued operations

     —         (0.14
  

 

 

   

 

 

 
   $ 0.63     $ 0.99  
  

 

 

   

 

 

 

Diluted:

    

Continuing operations

   $ 0.63     $ 1.11  

Discontinued operations

     —         (0.14
  

 

 

   

 

 

 
   $ 0.63     $ 0.97  
  

 

 

   

 

 

 

Cash dividends declared per common share

   $ 0.425     $ 0.35  

 

(1) 

Excludes Amortization and Reclamation and remediation.

 

The accompanying notes are an integral part of the condensed consolidated financial statements.

 

1


Table of Contents

NEWMONT MINING CORPORATION

STATEMENTS OF CONDENSED CONSOLIDATED COMPREHENSIVE INCOME (LOSS)

(unaudited, in millions)

 

     Three Months Ended March 31,  
     2013     2012  
     (in millions)  

Net income

   $ 357     $ 603  

Other comprehensive income (loss):

    

Unrealized loss on marketable securities, net of $38 and $23 tax benefit, respectively

     (52     (40

Foreign currency translation adjustments

     (12     10  

Change in pension and other post-retirement benefits, net of $5 and $2 tax expense, respectively

     5       4  

Change in fair value of cash flow hedge instruments, net of $15 and $(26) tax benefit (expense), respectively

    

Net change from periodic revaluations

     21       69  

Net amount reclassified to income

     (24     (35
  

 

 

   

 

 

 

Net unrecognized (loss) gain on derivatives

     (3     34  
  

 

 

   

 

 

 

Other comprehensive income

     (62     8  
  

 

 

   

 

 

 

Comprehensive income

   $ 295     $ 611  
  

 

 

   

 

 

 

Comprehensive income attributable to:

    

Newmont stockholders

   $ 254     $ 496  

Noncontrolling interests

     41       115  
  

 

 

   

 

 

 
   $ 295     $ 611  
  

 

 

   

 

 

 

 

The accompanying notes are an integral part of the condensed consolidated financial statements.

 

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Table of Contents

NEWMONT MINING CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited, in millions)

 

     Three Months Ended  
     March 31,  
     2013     2012  

Operating activities:

    

Net income

   $ 357     $ 603  

Adjustments:

    

Amortization

     267       231  

Stock based compensation and other non-cash benefits

     19       17  

Reclamation and remediation

     18       16  

Loss from discontinued operations

     —         71  

Impairment of marketable securities

     4       24  

Deferred income taxes

     (11     (55

Gain on asset sales, net

     (1     (10

Other operating adjustments and write-downs

     74       72  

Net change in operating assets and liabilities (Note 23)

     (288     (356
  

 

 

   

 

 

 

Net cash provided from continuing operations

     439       613  

Net cash used in discontinued operations

     (6     (4
  

 

 

   

 

 

 

Net cash provided from operations

     433       609  
  

 

 

   

 

 

 

Investing activities:

    

Additions to property, plant and mine development

     (510     (696

Acquisitions, net

     (8     (11

Sale of marketable securities

     1       —    

Purchases of marketable securities

     (1     (143

Proceeds from sale of other assets

     25       12  

Other

     (14     (17
  

 

 

   

 

 

 

Net cash used in investing activities

     (507     (855
  

 

 

   

 

 

 

Financing activities:

    

Proceeds from debt, net

     80       3,346  

Repayment of debt

     —         (1,907

Payment of conversion premium on debt

     —         (172

Proceeds from stock issuance, net

     1       2  

Sale of noncontrolling interests

     32       —    

Acquisition of noncontrolling interests

     (6     —    

Dividends paid to common stockholders

     (211     (173

Other

     (1     (2
  

 

 

   

 

 

 

Net cash provided from (used in) financing activities

     (105     1,094  
  

 

 

   

 

 

 

Effect of exchange rate changes on cash

     (4     4  
  

 

 

   

 

 

 

Net change in cash and cash equivalents

     (183     852  

Cash and cash equivalents at beginning of period

     1,561       1,760  
  

 

 

   

 

 

 

Cash and cash equivalents at end of period

   $ 1,378     $ 2,612  
  

 

 

   

 

 

 

 

The accompanying notes are an integral part of the condensed consolidated financial statements.

 

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NEWMONT MINING CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(unaudited, in millions)

 

     At March 31,      At December 31,  
     2013      2012  
ASSETS      

Cash and cash equivalents

   $ 1,378      $ 1,561  

Trade receivables

     212        283  

Accounts receivable

     553        577  

Investments (Note 15)

     75        86  

Inventories (Note 16)

     846        796  

Stockpiles and ore on leach pads (Note 17)

     956        786  

Deferred income tax assets

     297        195  

Other current assets (Note 18)

     1,309        1,661  
  

 

 

    

 

 

 

Current assets

     5,626        5,945  

Property, plant and mine development, net

     18,151        18,010  

Investments (Note 15)

     1,361        1,446  

Stockpiles and ore on leach pads (Note 17)

     2,952        2,896  

Deferred income tax assets

     473        481  

Other long-term assets (Note 18)

     888        872  
  

 

 

    

 

 

 

Total assets

   $ 29,451      $ 29,650  
  

 

 

    

 

 

 
LIABILITIES      

Debt (Note 19)

   $ 10      $ 10  

Accounts payable

     590        657  

Employee-related benefits

     290        339  

Income and mining taxes

     109        51  

Other current liabilities (Note 20)

     1,653        2,084  
  

 

 

    

 

 

 

Current liabilities

     2,652        3,141  

Debt (Note 19)

     6,379        6,288  

Reclamation and remediation liabilities (Note 4)

     1,465        1,457  

Deferred income tax liabilities

     862        858  

Employee-related benefits

     598        586  

Other long-term liabilities (Note 20)

     370        372  
  

 

 

    

 

 

 

Total liabilities

     12,326        12,702  
  

 

 

    

 

 

 

Commitments and contingencies (Note 25)

     
EQUITY      

Common stock

     788        787  

Additional paid-in capital

     8,407        8,330  

Accumulated other comprehensive income

     429        490  

Retained earnings

     4,270        4,166  
  

 

 

    

 

 

 

Newmont stockholders’ equity

     13,894        13,773  

Noncontrolling interests

     3,231        3,175  
  

 

 

    

 

 

 

Total equity

     17,125        16,948  
  

 

 

    

 

 

 

Total liabilities and equity

   $ 29,451      $ 29,650  
  

 

 

    

 

 

 

 

The accompanying notes are an integral part of the condensed consolidated financial statements.

 

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Table of Contents

NEWMONT MINING CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

(dollars in millions, except per share, per ounce and per pound amounts)

NOTE 1    BASIS OF PRESENTATION

The interim Condensed Consolidated Financial Statements (“interim statements”) of Newmont Mining Corporation and its subsidiaries (collectively, “Newmont” or the “Company”) are unaudited. In the opinion of management, all adjustments and disclosures necessary for a fair presentation of these interim statements have been included. The results reported in these interim statements are not necessarily indicative of the results that may be reported for the entire year. These interim statements should be read in conjunction with Newmont’s Consolidated Financial Statements for the year ended December 31, 2012 filed February 22, 2013 on Form 10-K. The year-end balance sheet data was derived from the audited financial statements and, in accordance with the instructions to Form 10-Q, certain information and footnote disclosures required by United States generally accepted accounting principles (“GAAP”) have been condensed or omitted. References to “A$” refer to Australian currency, “C$” to Canadian currency and “NZ$” to New Zealand currency.

On March 12, 2013, Newmont completed the sale of the Hope Bay Project to TMAC Resources Inc. (“TMAC”). At March 31, 2013, Newmont held a 49.9% voting interest in TMAC and an economic interest of 70.4%. The Company has made available a $15 credit facility due June 2014. Newmont has identified TMAC as a Variable Interest Entity (“VIE”) under FASB Accounting Standards Codification (“ASC”)—Consolidation guidance. Based upon the ASC guidance for VIEs, and the ownership structure, Newmont has determined that it has a controlling financial interest in TMAC and is therefore the primary beneficiary. As such, Newmont consolidated TMAC in its consolidated financial statements. TMAC has indicated that they anticipate raising funds at an undetermined date through an initial public offering (“IPO”). Should such an IPO occur, which there can be no assurance of such offering occurring, it is expected that Newmont’s ownership will be reduced and Newmont would reevaluate whether or not it is still required to consolidate under the applicable ASC guidance.

NOTE 2    SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Recently Adopted Accounting Pronouncements

Reporting of Amounts reclassified out of Accumulated Other Comprehensive Income

In February 2013, ASC guidance was issued related to items reclassified from Accumulated Other Comprehensive Income. The new standard requires either in a single note or parenthetically on the face of the financial statements: (i) the effect of significant amounts reclassified from each component of accumulated other comprehensive income based on its source and (ii) the income statement line items affected by the reclassification. Adoption of the new guidance, effective for the fiscal year beginning January 1, 2013, had no impact on the consolidated financial position, results of operations or cash flows.

Disclosures about Offsetting Assets and Liabilities

In November 2011, ASC guidance was issued related to disclosures about offsetting assets and liabilities. The new standard requires disclosures to allow investors to better compare financial statements prepared under U.S. GAAP with financial statements prepared under IFRS. In January 2013, an update was issued to further clarify that the disclosure requirements are limited to derivatives, repurchase agreements, and securities lending transactions to the extent that they are (i) offset in the financial statements or (ii) subject to an enforceable master netting arrangement or similar agreement. Adoption of the new guidance, effective for the fiscal year beginning January 1, 2013, had no impact on the consolidated financial position, results of operations or cash flows.

Recently Issued Accounting Pronouncements

Foreign Currency Matters

In March 2013, ASC guidance was issued related to Foreign Currency Matters to clarify the treatment of cumulative translation adjustments when a parent sells a part or all of its investment in a foreign entity or no longer holds a controlling financial interest in a subsidiary or group of assets that is a business within a foreign entity. The updated guidance also resolves the diversity in practice for the treatment of business combinations achieved in stages in a foreign entity. The update is effective prospectively for the Company’s fiscal year beginning January 1, 2014. The Company does not expect the updated guidance to have an impact on the consolidated financial position, results of operations or cash flows.

 

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Table of Contents

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    SEGMENT INFORMATION

The Company’s reportable segments are based upon the Company’s management structure that is focused on the geographic region for the Company’s operations. Segment results for 2012 have been retrospectively revised to reflect an organizational change, effective in the first quarter of 2013, that moved the Indonesia operations to a separately managed region. Geographic regions now include North America, South America, Australia/New Zealand, Indonesia, Africa and Corporate and Other. The financial information relating to the Company’s segments is as follows:

 

     Sales      Costs
Applicable
to Sales
     Amortization      Advanced
Projects and
Exploration
     Pre-Tax
Income
(Loss)
    Total
Assets
     Capital
Expenditures(1)
 

Three Months Ended March 31, 2013

  

             

Nevada

   $ 570      $ 272      $ 59      $ 25      $ 209     $ 7,680      $ 106  

La Herradura

     90        40        6        6        37       476        19  

Other North America

     —          —          —          1        (46     190        —    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

 

North America

     660        312        65        32        200       8,346        125  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

 

Yanacocha

     455        158        70        13        195       3,063        48  

Conga

     —          —          —          1        1       1,646        86  

Other South America

     —          —          —          5        (6     101        21  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

 

South America

     455        158        70        19        190       4,810        155  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

 

Boddington:

                   

Gold

     329        174        42             

Copper

     65        48        10             
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

 

Total

     394        222        52        —          114       4,627        25  

Other Australia/New Zealand

     392        232        46        12        93       2,187        41  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

 

Australia/New Zealand

     786        454        98        12        207       6,814        66  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

 

Batu Hijau:

                   

Gold

     11        7        2             

Copper

     70        47        9             
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

 

Total

     81        54        11        6        (4     3,854        23  

Other Indonesia

     —          —          —          —          3       4        —    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

 

Indonesia

     81        54        11        6        (1     3,858        23  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

 

Ahafo

     195        66        17        13        96       1,501        60  

Akyem

     —          —          —          3        (5     1,066        68  

Other Africa

     —          —          —          3        (3     1        —    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

 

Africa

     195        66        17        19        88       2,568        128  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

 

Corporate and Other

     —          —          6        23        (142     3,055        —    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

 

Consolidated

   $ 2,177      $ 1,044      $ 267      $ 111      $ 542     $ 29,451      $ 497  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

 

 

(1) 

Includes a decrease in accrued capital expenditures of $13; consolidated capital expenditures on a cash basis were $510.

 

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Table of Contents

NEWMONT MINING CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)

(dollars in millions, except per share, per ounce and per pound amounts)

 

     Sales      Costs
Applicable
to Sales
     Amortization      Advanced
Projects and
Exploration
     Pre-Tax
Income
(Loss)
    Total
Assets
     Capital
Expenditures(1)
 

Three Months Ended March 31, 2012

                   

Nevada

   $ 723      $ 267      $ 53      $ 34      $ 369     $ 7,092      $ 157  

La Herradura

     93        32        5        6        45       371        21  

Other North America

     —          —          —          —          (52     175        —    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

 

North America

     816        299        58        40        362       7,638        178  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

 

Yanacocha

     594        161        50        17        349       2,745        93  

Conga

     —          —          —          27        (27     1,254        147  

Other South America

     —          —          —          25        (25     74        27  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

 

South America

     594        161        50        69        297       4,073        267  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

 

Boddington:

                   

Gold

     298        137        32             

Copper

     61        30        6             
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

 

Total

     359        167        38        3        143       4,661        23  

Other Australia/New Zealand

     427        190        37        21        185       1,993        73  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

 

Australia/New Zealand

     786        357        75        24        328       6,654        96  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

 

Batu Hijau:

                   

Gold

     34        19        3             

Copper

     172        85        16             
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

 

Total

     206        104        19        7        48       3,671        33  

Other Indonesia

     —          —          —          —          (1     2        —    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

 

Indonesia

     206        104        19        7        47       3,673        33  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

 

Ahafo

     281        96        24        11        150       1,277        50  

Akyem

     —          —          —          4        (5     653        85  

Other Africa

     —          —          —          2        (2     5        —    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

 

Africa

     281        96        24        17        143       1,935        135  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

 

Corporate and Other

     —          —          5        33        (141     4,988        11  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

 

Consolidated

   $ 2,683      $ 1,017      $ 231      $ 190      $ 1,036     $ 28,961      $ 720  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

 

 

(1) 

Includes an increase in accrued capital expenditures of $24; consolidated capital expenditures on a cash basis were $696.

 

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NEWMONT MINING CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)

(dollars in millions, except per share, per ounce and per pound amounts)

 

NOTE 4    RECLAMATION AND REMEDIATION

The Company’s Reclamation and remediation expense consisted of:

 

     Three Months Ended March 31,  
     2013      2012  

Accretion - operating

   $ 15      $ 14  

Accretion - non-operating

     3        2  
  

 

 

    

 

 

 
   $ 18      $ 16  
  

 

 

    

 

 

 

At March 31, 2013 and December 31, 2012, $1,350 and $1,341, respectively, were accrued for reclamation obligations relating to mineral properties. In addition, the Company is involved in several matters concerning environmental obligations associated with former, primarily historic, mining activities. Generally, these matters concern developing and implementing remediation plans at the various sites involved. At March 31, 2013 and December 31, 2012, $195 and $198, respectively, were accrued for such obligations. These amounts are also included in Reclamation and remediation liabilities.

The following is a reconciliation of Reclamation and remediation liabilities:

 

     Three Months Ended March 31,  
     2013     2012  

Balance at beginning of period

   $ 1,539     $ 1,240  

Additions, changes in estimates and other

     (3     105  

Liabilities settled

     (9     (28

Accretion expense

     18       16  
  

 

 

   

 

 

 

Balance at end of period

   $ 1,545     $ 1,333  
  

 

 

   

 

 

 

The current portion of Reclamation and remediation liabilities of $80 and $82 at March 31, 2013 and December 31, 2012, respectively, are included in Other current liabilities (see Note 20).

NOTE 5    OTHER EXPENSE, NET

 

     Three Months
Ended March 31,
 
     2013     2012  

TMAC transaction costs

   $ 45     $ —    

Regional administration

     18       21  

Community development

     13       31  

Restructuring and other

     9       —    

Western Australia power plant

     4       4  

World Gold Council Dues

     1       3  

Hope Bay care and maintenance

     (2     50  

Other

     12       11  
  

 

 

   

 

 

 
   $ 100     $ 120  
  

 

 

   

 

 

 

 

8


Table of Contents

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    OTHER INCOME, NET

 

     Three Months Ended March 31,  
     2013     2012  

Canadian Oil Sands

   $ 10     $ 9  

Interest

     4       5  

Derivative ineffectiveness, net

     3       2  

Refinery income, net

     3       5  

Development projects, net

     1       14  

Gain on asset sales, net

     1       10  

Reduction of allowance for loan receivable

     —         21  

Foreign currency exchange, net

     (3     (15

Impairment of marketable securities

     (4     (24

Other

     11       6  
  

 

 

   

 

 

 
   $ 26     $ 33  
  

 

 

   

 

 

 

NOTE 7    INCOME AND MINING TAXES

During the first quarter of 2013, the Company recorded estimated income and mining tax expense of $181 resulting in an effective tax rate of 33%. Estimated income and mining tax expense during the first quarter of 2012 was $343 for an effective tax rate of 33%.

The Company’s income and mining tax expense differed from the statutory rate of 35% for the following reasons:

 

     Three Months Ended March 31,  
     2013     2012  

Income before income and mining tax and other items

     $ 542       $ 1,036  
    

 

 

     

 

 

 

Tax on income at 35% statutory rate

     35   $ 190       35   $ 363  

Reconciling items:

        

Percentage depletion

     (7     (41     (7     (74

Change in valuation allowance on deferred tax assets

     1       6       3       32  

Other

     4       26       2       22  
  

 

 

   

 

 

   

 

 

   

 

 

 

Income and mining tax expense

     33   $ 181       33   $ 343  
  

 

 

   

 

 

   

 

 

   

 

 

 

The Company operates in numerous countries around the world and accordingly it is subject to, and pays annual income taxes under, the various income tax regimes in the countries in which it operates. Some of these tax regimes are defined by contractual agreements with the local government, and others are defined by the general corporate income tax laws of the country. The Company has historically filed, and continues to file, all required income tax returns and pay the income taxes reasonably determined to be due. The tax rules and regulations in many countries are highly complex and subject to interpretation. From time to time the Company is subject to a review of its historic income tax filings and in connection with such reviews, disputes can arise with the taxing authorities over the interpretation or application of certain rules to the Company’s business conducted within the country involved.

At March 31, 2013, the Company’s total unrecognized tax benefit was $402 for uncertain income tax positions taken or expected to be taken on income tax returns. Of this, $126 represents the amount of unrecognized tax benefits that, if recognized, would affect the Company’s effective income tax rate.

As a result of the statute of limitations that expire in the next 12 months in various jurisdictions, and possible settlements of audit-related issues with taxing authorities in various jurisdictions with respect to which none of the issues are individually significant, the Company believes that it is reasonably possible that the total amount of its net unrecognized income tax benefits will decrease by approximately $15 to $20 in the next 12 months.

 

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Table of Contents

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    DISCONTINUED OPERATIONS

Discontinued operations include Holloway Mining Company, which owned the Holt-McDermott property (“Holt property”) that was sold to St. Andrew Goldfields Ltd. (“St. Andrew”) in 2006. In 2009, the Superior Court issued a decision finding Newmont Canada Corporation (“Newmont Canada”) liable for a sliding scale royalty on production from the Holt property, which was upheld in 2011 by the Ontario Court of Appeal. During the first quarter of 2012, the Company recorded an additional $71 charge, net of tax benefits of $4, to reflect an increase in future expected production at the Holt property due to new reserve and resource estimates published by St. Andrew.

Net operating cash used in discontinued operations of $6 and $4 in the first quarter of 2013 and 2012 relates to payments on the Holt property royalty.

NOTE 9    NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS

 

     Three Months Ended March 31,  
     2013     2012  

Minera Yanacocha

   $ 57     $ 98  

TMAC

     (12     —    

Batu Hijau

     (3     13  

Other

     —         2  
  

 

 

   

 

 

 
   $ 42     $ 113  
  

 

 

   

 

 

 

Newmont has a 51.35% ownership interest in Minera Yanacocha S.R.L. (“Yanacocha”), with the remaining interests held by Compañia de Minas Buenaventura, S.A.A. (43.65%) and the International Finance Corporation (5%).

Newmont has a 70.4% economic ownership interest in TMAC, with remaining interests held by various outside investors.

Newmont has a 48.5% effective economic interest in PT Newmont Nusa Tenggara (“PTNNT”) with remaining interests held by various Indonesian entities, in accordance with PTNNT’s Contract of Work. PTNNT operates the Batu Hijau copper and gold mine in Indonesia. Based on ASC guidance for variable interest entities, Newmont consolidates PTNNT in its Condensed Consolidated Financial Statements.

 

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Table of Contents

NEWMONT MINING CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)

(dollars in millions, except per share, per ounce and per pound amounts)

 

NOTE 10    INCOME PER COMMON SHARE

Basic income per common share is computed by dividing income available to Newmont common stockholders by the weighted average number of common shares outstanding during the period. Diluted income per common share is computed similarly except that weighted average common shares is increased to reflect all dilutive instruments.

 

     Three Months Ended March 31,  
         2013              2012      

Net income attributable to Newmont stockholders

   $ 315      $ 490  

Weighted average common shares (millions):

     

Basic

     497        495  

Effect of employee stock-based awards

     1        2  

Effect of convertible notes

     —          7  
  

 

 

    

 

 

 

Diluted

     498        504  
  

 

 

    

 

 

 

Net income attributable to Newmont stockholders per common share

     

Basic:

     

Continuing operations

   $ 0.63      $ 1.13  

Discontinued operations

     —          (0.14
  

 

 

    

 

 

 
   $ 0.63      $ 0.99  
  

 

 

    

 

 

 

Diluted:

     

Continuing operations

   $ 0.63      $ 1.11  

Discontinued operations

     —          (0.14
  

 

 

    

 

 

 
   $ 0.63      $ 0.97  
  

 

 

    

 

 

 

Options to purchase 4 and 1 million shares of common stock at average exercise prices of $49 and $59 were outstanding at March 31, 2013 and 2012, respectively, but were not included in the computation of diluted weighted average common shares because their exercise prices exceeded the average price of the Company’s common stock for the respective periods presented.

Newmont is required to settle the principal amount of its 2014 and 2017 Convertible Senior Notes in cash and may elect to settle the remaining conversion premium (average share price in excess of the conversion price), if any, in cash, shares or a combination thereof. The effect of contingently convertible instruments on diluted earnings per share is calculated under the net share settlement method in accordance with ASC guidance. The average price of the Company’s common stock exceeded the conversion prices for all periods presented, resulting in additional shares included in the computation of diluted weighted average common shares.

In February 2012, the holders of the Company’s 2012 Convertible Senior Notes exercised their election to convert the notes. The Company elected to pay the $172 conversion premium with cash, and as a result no common shares were issued.

 

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NEWMONT MINING CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)

(dollars in millions, except per share, per ounce and per pound amounts)

 

NOTE 11    EMPLOYEE PENSION AND OTHER BENEFIT PLANS

 

     Three Months Ended March 31,  
         2013             2012      

Pension benefit costs, net

    

Service cost

   $ 9     $ 7  

Interest cost

     10       10  

Expected return on plan assets

     (12     (11

Amortization, net

     8       6  
  

 

 

   

 

 

 
   $ 15     $ 12  
  

 

 

   

 

 

 
     Three Months Ended March 31,  
     2013     2012  

Other benefit costs, net

    

Service cost

   $ 1     $ 1  

Interest cost

     1       1  
  

 

 

   

 

 

 
   $ 2     $ 2  
  

 

 

   

 

 

 

NOTE 12    STOCK BASED COMPENSATION

 

     Three Months Ended March 31,  
     2013      2012  

Stock options

   $ 3      $ 4  

Restricted stock units

     9        5  

Performance leveraged stock units

     2        3  
  

 

 

    

 

 

 
   $ 14      $ 12  
  

 

 

    

 

 

 

NOTE 13    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).

The following table sets forth the Company’s 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.

 

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NEWMONT MINING CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)

(dollars in millions, except per share, per ounce and per pound amounts)

 

     Fair Value at March 31, 2013  
     Total      Level 1      Level 2      Level 3  

Assets:

           

Cash equivalents

   $ 61      $ 61      $ —        $ —    

Marketable equity securities:

           

Extractive industries

     1,304        1,304        —          —    

Other

     4        4        —          —    

Marketable debt securities:

           

Asset backed commercial paper

     23        —          —          23  

Corporate

     13        —          13        —    

Auction rate securities

     5        —          —          5  

Trade receivable from provisional copper and gold concentrate sales, net

     126        126        —          —    

Derivative instruments, net:

           

Foreign exchange forward contracts

     236        —          236        —    

Diesel forward contracts

     3        —          3        —    
  

 

 

    

 

 

    

 

 

    

 

 

 
   $ 1,775      $ 1,495      $ 252      $ 28  
  

 

 

    

 

 

    

 

 

    

 

 

 

Liabilities:

           

Boddington contingent consideration

     33        —          —          33  

Holt property royalty

     234        —          —          234  
  

 

 

    

 

 

    

 

 

    

 

 

 
   $ 267      $ —        $ —        $ 267  
  

 

 

    

 

 

    

 

 

    

 

 

 

The fair values of the derivative instruments in the table above are presented on a net basis. The gross amounts related to the fair value of the derivatives instruments above are included in the Derivatives Instruments Note (see Note 14). All other Fair Value disclosures in the above table are presented on a gross basis.

The Company’s 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 Company’s 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 securities are segregated based on industry. 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 Company’s marketable corporate debt securities are mainly comingled fund investments that are classified within Level 2 with the unit of account considered to be at the fund level. Therefore, the investments are classified as Level 2 of the fair value hierarchy.

The Company’s marketable debt securities also include investments in auction rate securities and asset backed commercial paper. The Company reviews the fair value for auction rate securities and asset backed commercial paper on a quarterly basis. The auction rate securities are traded in markets that are not active, trade infrequently and have little price transparency. See table below which sets forth a summary of the quantitative and qualitative information related to the significant unobservable inputs used in the calculation of the fair value.

The Company’s net trade receivable from provisional copper and gold concentrate sales, subject to final pricing, is valued using quoted market prices based on forward curves and, as such, is classified within Level 1 of the fair value hierarchy.

The Company’s derivative instruments are valued using pricing models and the Company generally uses similar models to value similar instruments. 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 Company’s 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.

 

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Table of Contents

NEWMONT MINING CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)

(dollars in millions, except per share, per ounce and per pound amounts)

 

The estimated value of the Boddington contingent royalty was determined using a Monte Carlo valuation model which simulates future gold and copper prices and costs applicable to sales. This contingent royalty is capped at $100, and at June 30,2012, the Company increased the accrual to the maximum of $100. The Boddington contingent royalty is classified within Level 3 of the fair value hierarchy. See table below which sets forth a summary of the quantitative and qualitative information related to the significant unobservable inputs used in the calculation of the fair value.

The estimated fair value of the Holt sliding scale royalty was determined using a Monte Carlo valuation model. The sliding scale royalty liability is classified within Level 3 of the fair value hierarchy. See table below which sets forth a summary of the quantitative and qualitative information related to the significant unobservable inputs used in the calculation of the fair value.

The following table sets forth a summary of the quantitative and qualitative information related to the unobservable inputs used in the calculation of the Company’s Level 3 financial assets and liabilities for the three months ended March 31, 2013:

 

Description

   At March 31,
2013
    

Valuation technique

  

Unobservable input

   Range/Weighted
average
 

Auction Rate Securities

   $ 5      Discounted cash flow    Weighted average recoverability rate      58

Asset Backed Commercial Paper

     23      Discounted cash flow    Recoverability rate      72-88

Boddington Contingent Consideration

     33      Monte Carlo    Discount rate      4
         LT Gold price    $ 1,500  
         LT Copper price    $ 3.50  

Holt property royalty

     234      Monte Carlo    Weighted average discount rate     
         LT Gold price    $ 1,500  

The following table sets forth a summary of changes in the fair value of the Company’s Level 3 financial assets and liabilities for the year ended March 31, 2013:

 

     Auction Rate
Securities
     Asset Backed
Commercial
Paper
     Total Assets      Boddington
Contingent
Royalty
    Holt Property
Royalty
    Total
Liabilities
 

Balance at beginning of period

   $ 5      $ 19      $ 24      $ 41     $ 240     $ 281  

Settlements

     —             —          (8     (6     (14

Revaluation

     —          4        4        —         —         —    
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Balance at end of period

   $ 5      $ 23      $ 28      $ 33     $ 234     $ 267  
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

At March 31, 2013, assets and liabilities classified within Level 3 of the fair value hierarchy represent 2% and 100%, respectively, of total assets and liabilities measured at fair value.

 

14


Table of Contents

NEWMONT MINING CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)

(dollars in millions, except per share, per ounce and per pound amounts)

 

NOTE 14    DERIVATIVE INSTRUMENTS

The Company’s strategy is to provide shareholders with leverage to changes in gold and copper prices by selling its production at spot market prices. Consequently, the Company does not hedge its gold and copper sales. The Company continues to manage certain risks associated with commodity input costs, interest rates and foreign currencies using the derivative market. All of the derivative instruments described below were transacted for risk management purposes and qualify as cash flow.

Cash Flow Hedges

The foreign currency, diesel and forward starting swap contracts are designated as cash flow hedges, and as such, the effective portion of unrealized changes in market value have been recorded in Accumulated other comprehensive income and are reclassified to earnings during the period in which the hedged transaction affects earnings. Gains and losses from hedge ineffectiveness are recognized in current earnings.

Foreign Currency Contracts

Newmont utilizes foreign currency contracts to reduce the variability of the US dollar amount of forecasted foreign currency expenditures caused by changes in exchange rates. Newmont hedges a portion of the Company’s A$ and NZ$ denominated operating expenditures which results in a blended rate realized each period. The hedging instruments are fixed forward contracts with expiration dates ranging up to five years from the date of issue. The principal hedging objective is reduction in the volatility of realized period-on-period $/A$ and $/NZ$ rates, respectively.

In June 2011, Newmont began hedging a portion of the Company’s A$ denominated capital expenditures related to the Akyem project in Africa utilizing fixed forward contracts with expiration dates up to three years.

Newmont had the following foreign currency derivative contracts outstanding at March 31, 2013:

 

     Expected Maturity Date  
     2013     2014     2015     2016     2017     2018     Total/
Average
 
              

A$ Operating Fixed Forward Contracts:

              

A$ notional (millions)

     959       1,035       737       490       208       14       3,443  

Average rate ($/A$)

     0.95       0.93       0.92       0.92       0.92       0.92       0.93  

Expected hedge ratio

     80      67      48      32      13       

A$ Capital Fixed Forward Contracts:

              

A$ notional (millions)

     3       —         —         —         —         —         3  

Average rate ($/A$)

     0.96       —         —         —         —         —         0.96  

Expected hedge ratio

     36      —         —         —         —         —      

NZ$ Operating Fixed Forward Contracts:

              

NZ$ notional (millions)

     55       35       3       —         —         —         93  

Average rate ($/NZ$)

     0.80       0.80       0.79       —         —         —         0.80  

Expected hedge ratio

     60      30      11      —         —         —      

 

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Table of Contents

NEWMONT MINING CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)

(dollars in millions, except per share, per ounce and per pound amounts)

 

Diesel Fixed Forward Contracts

Newmont hedges a portion of its operating cost exposure related to diesel 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 up to three years.

Newmont had the following diesel derivative contracts outstanding at March 31, 2013:

 

     Expected Maturity Date  
     2013     2014     2015     2016      Total/
Average
 
          

Diesel Fixed Forward Contracts:

          

Diesel gallons (millions)

     20       18       8       1        47  

Average rate ($/gallon)

     2.92       2.88       2.79       2.76        2.88  

Expected hedge ratio

     61     41     19     5  

Forward Starting Swap Contracts

During 2011, Newmont entered into forward starting interest rate swap contracts with a total notional value of $2,000. These contracts hedged movements in treasury rates related to a debt issuance that occurred in the first quarter of 2012. On March 8, 2012, Newmont closed its sale of $2,500 senior notes consisting of 3.5% senior notes due 2022 in the principal amount of $1,500 (10-year notes), and 4.875% senior notes due 2042 in the principal amount of $1,000 (30-year notes). As a result, the forward-starting interest rate swaps were settled for $362, of which $349 represented the effective portion of the hedging instrument included in Accumulated other comprehensive income. The net proceeds from the debt issuance were adjusted by the settlement amount of the swap contracts and included as a financing activity in the Condensed Consolidated Statements of Cash Flow.

Derivative Instrument Fair Values

Newmont had the following derivative instruments designated as hedges at March 31, 2013 and December 31, 2012:

 

     Fair Value  
     At March 31, 2013  
     Other
Current
Assets
     Other Long-
Term Assets
     Other
Current
Liabilities
     Other Long-
Term
Liabilities
 

Foreign currency exchange contracts:

           

A$ operating fixed forwards

   $ 105      $ 130      $ —        $ 1  

NZ$ operating fixed forwards

     2        —          —          —    

Diesel fixed forwards

     2        1        —          —    
  

 

 

    

 

 

    

 

 

    

 

 

 

Total derivative instruments (Note 18 and 20)

   $ 109      $ 131      $ —        $ 1  
  

 

 

    

 

 

    

 

 

    

 

 

 

 

     Fair Value  
     At December 31, 2012  
     Other
Current
Assets
     Other Long-
Term Assets
     Other
Current
Liabilities
     Other Long-
Term
Liabilities
 

Foreign currency exchange contracts:

           

A$ operating fixed forwards

   $ 108        143        —          1  

NZ$ operating fixed forwards

     2        —          —          —    

Diesel fixed forwards

     2        1        1        1  
  

 

 

    

 

 

    

 

 

    

 

 

 

Total derivative instruments (Note 18 and 20)

   $ 112      $ 144      $ 1      $ 2  
  

 

 

    

 

 

    

 

 

    

 

 

 

 

16


Table of Contents

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 Company’s Condensed Consolidated Financial Statements related to the Company’s cash flow hedges.

 

     Foreign Currency
Exchange  Contracts
     Diesel  Forward
Contracts
     Forward  Starting
Swaps
 
     2013      2012      2013      2012      2013     2012  

For the three months ended March 31,

                

Cash flow hedging relationships:

                

Gain recognized in other comprehensive income (effective portion)

   $ 18      $ 62      $ 3      $ 12      $ —       $ 36  

Gain(loss) reclassified from Accumulated other comprehensive income into income (effective portion) (1)

     38        47        1        3        (3     (1

Gain recognized in income (ineffective portion) (2)

     —          —          3        —          —         2  

 

(1) 

The gain (loss) for the effective portion of the foreign exchange and diesel cash flow hedges reclassified from Accumulated other comprehensive income is included in Costs applicable to sales. The loss for the effective portion of the forward starting swaps reclassified from Accumulated other comprehensive income is included in Interest Expense.

(2) 

The ineffective portion recognized for cash flow hedges is included in Other Income, net.

The amount to be reclassified from Accumulated other comprehensive income, net of tax to income for derivative instruments during the next 12 months is a gain of approximately $58.

Provisional Copper and Gold Sales

The Company’s provisional copper and gold sales contain an embedded derivative that is required to be separated from the host contract for accounting purposes. The host contract is the receivable from the sale of the gold and copper concentrates at the prevailing indices’ prices at the time of sale. The embedded derivative, which does not qualify for hedge accounting, is marked to market through earnings each period prior to final settlement.

LME copper prices averaged $3.60 per pound during the first quarter of 2013, consistent with the Company’s recorded average provisional price before mark-to-market losses and treatment and refining charges. During the first quarter of 2013, changes in copper prices resulted in a provisional pricing mark-to-market loss of $9 ($0.21 per pound). At March 31, 2013, Newmont had copper sales of 38 million pounds priced at an average of $3.45 per pound, subject to final pricing over the next several months.

The average London P.M. fix for gold was $1,632 per ounce during the first quarter of 2013, consistent with the Company’s recorded average provisional price before mark-to-market gains and treatment and refining charges. During the first quarter of 2013, changes in gold prices resulted in a provisional pricing mark-to-market gain of $3 ($2 per ounce). At March 31, 2013, Newmont had gold sales of 104,000 ounces priced at an average of $1,598 per ounce, subject to final pricing over the next several months.

 

17


Table of Contents

NEWMONT MINING CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)

(dollars in millions, except per share, per ounce and per pound amounts)

 

NOTE 15    INVESTMENTS

 

     At March 31, 2013  
     Cost/Equity
Basis
     Unrealized     Fair/Equity
Basis
 
            Gain              Loss        

Current:

          

Marketable Equity Securities:

          

Paladin Energy Ltd.

   $ 60      $ —        $ (8   $ 52  

Other

     16        9        (2     23  
  

 

 

    

 

 

    

 

 

   

 

 

 
   $ 76      $ 9      $ (10   $ 75  
  

 

 

    

 

 

    

 

 

   

 

 

 

Long-term:

          

Marketable Debt Securities:

          

Asset backed commercial paper

   $ 24      $ —        $ (1   $ 23  

Auction rate securities

     7        —          (2     5  

Corporate

     13        —          —         13  
  

 

 

    

 

 

    

 

 

   

 

 

 
     44        —          (3     41  
  

 

 

    

 

 

    

 

 

   

 

 

 

Marketable Equity Securities:

          

Canadian Oil Sands Ltd.

     303        332        —         635  

Gabriel Resources Ltd.

     76        45        —         121  

Regis Resources Ltd.

     166        255        —         421  

Other

     52        9        (5     56  
  

 

 

    

 

 

    

 

 

   

 

 

 
     597        641        (5     1,233  
  

 

 

    

 

 

    

 

 

   

 

 

 

Other investments, at cost

     13        —          —         13  

Investment in Affiliates:

          

Euronimba Ltd.

     3        —          —         3  

Minera La Zanja S.R.L.

     71        —          —         71  
  

 

 

    

 

 

    

 

 

   

 

 

 
   $ 728      $ 641      $ (8   $ 1,361  
  

 

 

    

 

 

    

 

 

   

 

 

 

 

18


Table of Contents

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, 2012  
     Cost/Equity
Basis
     Unrealized     Fair/Equity
Basis
 
            Gain              Loss        

Current:

          

Marketable Equity Securities:

          

Paladin Energy Ltd.

   $ 60      $ —        $ (3   $ 57  

Other

     17        14        (2     29  
  

 

 

    

 

 

    

 

 

   

 

 

 
   $ 77      $ 14      $ (5   $ 86  
  

 

 

    

 

 

    

 

 

   

 

 

 

Long-term:

          

Marketable Debt Securities:

          

Asset backed commercial paper

   $ 25      $ —        $ (6   $ 19  

Auction rate securities

     7        —          (2     5  

Corporate

     14        —          —         14  
  

 

 

    

 

 

    

 

 

   

 

 

 
     46        —          (8     38  
  

 

 

    

 

 

    

 

 

   

 

 

 

Marketable Equity Securities:

          

Canadian Oil Sands Trust

     310        318        —         628  

Gabriel Resources Ltd.

     78        42        —         120  

Regis Resources Ltd.

     166        352        —         518  

Other

     51        14        —         65  
  

 

 

    

 

 

    

 

 

   

 

 

 
     605        726        —         1,331  
  

 

 

    

 

 

    

 

 

   

 

 

 

Other investments, at cost

     12        —          —         12  

Investment in Affiliates:

          

Minera La Zanja S.R.L.

     65        —          —         65  
  

 

 

    

 

 

    

 

 

   

 

 

 
   $ 728      $ 726      $ (8   $ 1,446  
  

 

 

    

 

 

    

 

 

   

 

 

 

 

19


Table of Contents

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 Company’s investments with unrealized losses that are not deemed to be other-than-temporarily impaired, aggregated by length of time that the individual securities have been in a continuous unrealized loss position:

 

     Less than 12 Months      12 Months or Greater      Total  

At March 31, 2013

   Fair Value      Unrealized
Losses
     Fair Value      Unrealized
Losses
     Fair Value      Unrealized
Losses
 

Marketable equity securities

   $ 75      $ 15      $ —         $ —         $ 75      $ 15  

Asset backed commercial paper

     —           —           23        1        23        1  

Auction rate securities

     —           —           5        2        5        2  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
   $ 75      $ 15      $ 28      $ 3      $ 103      $ 18  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
     Less than 12 Months      12 Months or Greater      Total  

At December 31, 2012

   Fair Value      Unrealized
Losses
     Fair Value      Unrealized
Losses
     Fair Value      Unrealized
Losses
 

Marketable equity securities

   $ 79      $ 5      $  —         $  —         $ 79      $ 5  

Asset backed commercial paper

     —           —           19        6        19        6  

Auction rate securities

     —           —           5        2        5        2  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
   $ 79      $ 5      $ 24      $ 8      $ 103      $ 13  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

While the fair values of the Company’s investments in asset backed commercial paper and auction rate securities are below their respective cost, the Company views these declines as temporary. 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 16    INVENTORIES

 

     At March  31,
2013
     At December  31,
2012
 
     

In-process

   $ 119      $ 143  

Concentrate

     180        152  

Precious metals

     50        31  

Materials, supplies and other

     497        470  
  

 

 

    

 

 

 
   $ 846      $ 796  
  

 

 

    

 

 

 

NOTE 17    STOCKPILES AND ORE ON LEACH PADS

 

     At March  31,
2013
     At December  31,
2012
 
     

Current:

     

Stockpiles

   $ 714      $ 602  

Ore on leach pads

     242        184  
  

 

 

    

 

 

 
   $ 956      $ 786  
  

 

 

    

 

 

 

Long-term:

     

Stockpiles

   $ 2,582      $ 2,514  

Ore on leach pads

     370        382  
  

 

 

    

 

 

 
   $ 2,952      $ 2,896  
  

 

 

    

 

 

 

 

20


Table of Contents

NEWMONT MINING CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)

(dollars in millions, except per share, per ounce and per pound amounts)

 

     At March 31,      At December 31,  
     2013      2012  

Stockpiles and ore on leach pads:

     

Nevada

   $ 757      $ 699  

La Herradura

     67        57  

Yanacocha

     540        498  

Boddington

     491        474  

Batu Hijau

     1,631        1,543  

Other Australia/New Zealand

     175        173  

Ahafo

     241        235  

Akyem

     6        3  
  

 

 

    

 

 

 
   $ 3,908      $ 3,682  
  

 

 

    

 

 

 

NOTE 18    OTHER ASSETS

 

     At March 31,      At December 31,  
     2013      2012  

Other current assets:

     

Refinery metal inventory and receivable

   $ 844      $ 1,183  

Prepaid assets

     234        213  

Derivative instruments

     109        112  

Restricted cash

     7        12  

Other

     115        141  
  

 

 

    

 

 

 
   $ 1,309      $ 1,661  
  

 

 

    

 

 

 

Other long-term assets:

     

Goodwill

   $ 188      $ 188  

Intangible assets

     138        136  

Derivative instruments

     131        144  

Income tax receivable

     105        92  

Restricted cash

     93        90  

Debt issuance costs

     70        73  

Other receivables

     10        9  

Other

     153        140  
  

 

 

    

 

 

 
   $ 888      $ 872  
  

 

 

    

 

 

 

 

21


Table of Contents

NEWMONT MINING CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)

(dollars in millions, except per share, per ounce and per pound amounts)

 

NOTE 19    DEBT

 

     At March 31, 2013      At December 31, 2012  
     Current      Non-Current      Current      Non-Current  

2014 Convertible Senior Notes, net

     —          541        —          535  

2017 Convertible Senior Notes, net

     —           476        —          471  

2019 Senior Notes, net

     —           897        —           897  

2022 Senior Notes, net

     —           1,490        —           1,489  

2035 Senior Notes, net

     —           598        —           598  

2039 Senior Notes, net

     —           1,087        —           1,087  

2042 Senior Notes, net

     —           992        —           992  

Ahafo project finance facility

     10        35        10        35  

PTNNT revolving credit facility

     —           260        —           180  

Other capital leases

     —           3        —           4  
  

 

 

    

 

 

    

 

 

    

 

 

 
   $ 10      $ 6,379      $ 10      $ 6,288  
  

 

 

    

 

 

    

 

 

    

 

 

 

Scheduled minimum debt repayments are $10 for the remainder of 2013, $552 in 2014, $11 in 2015, $11 in 2016, $742 in 2017 and $5,063 thereafter.

NOTE 20    OTHER LIABILITIES

 

     At March 31,      At December 31,  
     2013      2012  

Other current liabilities:

     

Refinery metal payable

   $ 844      $ 1,183  

Accrued operating costs

     261        336  

Accrued capital expenditures

     159        172  

Interest

     83        74  

Reclamation and remediation liabilities

     80        82  

Deferred income tax

     65        65  

Royalties

     41        42  

Holt property royalty

     23        21  

Boddington contingent consideration

     11        26  

Taxes other than income and mining

     8        14  

Other

     78        69  
  

 

 

    

 

 

 
   $ 1,653      $ 2,084  
  

 

 

    

 

 

 

Other long-term liabilities:

     

Holt property royalty

   $ 211      $ 219  

Income and mining taxes

     70        65  

Power supply agreements

     46        46  

Boddington contingent consideration

     22        15  

Other

     21        27  
  

 

 

    

 

 

 
   $ 370      $ 372  
  

 

 

    

 

 

 

 

22


Table of Contents

NEWMONT MINING CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)

(dollars in millions, except per share, per ounce and per pound amounts)

 

NOTE 21    CHANGES IN EQUITY

 

     Three Months Ended March 31,  
     2013     2012  

Common stock:

    

At beginning of period

   $ 787     $ 784  

Stock based awards

     1       1  
  

 

 

   

 

 

 

At end of period

     788       785  
  

 

 

   

 

 

 

Additional paid-in capital:

    

At beginning of period

     8,330       8,408  

Conversion premium on convertible notes

     —         (172

Stock based awards

     29       27  

Sale of noncontrolling interests

     48       —     
  

 

 

   

 

 

 

At end of period

     8,407       8,263  
  

 

 

   

 

 

 

Accumulated other comprehensive income:

    

At beginning of period

     490       652  

Other comprehensive income

     (61     6  
  

 

 

   

 

 

 

At end of period

     429       658  
  

 

 

   

 

 

 

Retained earnings:

    

At beginning of period

     4,166       3,052  

Net income attributable to Newmont stockholders

     315       490  

Dividends paid

     (211     (173
  

 

 

   

 

 

 

At end of period

     4,270       3,369  
  

 

 

   

 

 

 

Noncontrolling interests:

    

At beginning of period

     3,175       2,875  

Net income attributable to noncontrolling interests

     42       113  

Sale of noncontrolling interests, net

     15       —    

Other comprehensive income

     (1     2  
  

 

 

   

 

 

 

At end of period

     3,231       2,990  
  

 

 

   

 

 

 

Total equity

   $ 17,125     $ 16,065  
  

 

 

   

 

 

 

 

23


Table of Contents

NEWMONT MINING CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)

(dollars in millions, except per share, per ounce and per pound amounts)

 

NOTE 22    RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME

 

     Unrealized
gain on
marketable
securities,
net
    Foreign
currency
translation
adjustments
    Pension
and other
post-
retirement
benefit
adjustments
    Changes in
fair value
of cash
flow hedge
instruments
    Total  

December 31, 2012

   $ 542     $ 177     $ (276   $ 47     $ 490  

Change in other comprehensive income before reclassifications

     (55     (11     —         21       (45

Reclassifications from accumulated other comprehensive income

     3       —         5       (24     (16
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net current-period other comprehensive income (loss)

     (52     (11     5       (3     (61
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

March 31, 2013

   $ 490     $ 166     $ (271   $ 44     $ 429  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

Details about Accumulated Other Comprehensive Income Components

   Amount
Reclassified from
Accumulated Other
Comprehensive
Income
   

Affected Line Item in the Condensed
Consolidated Statement of Income

Unrealized gain on marketable securities:

    

Impairment of marketable securities

   $ 4     Other income, net
  

 

 

   

Total before tax

     4    

Tax (expense) benefit

     (1  
  

 

 

   

Net of tax

   $ 3    
  

 

 

   

Pension liability adjustments:

    

Amortization, net

   $ 8     (1)
  

 

 

   

Total before tax

     8    

Tax (expense) benefit

     (3  
  

 

 

   

Net of tax

   $ 5    
  

 

 

   

Gain (loss) on hedge instruments:

    

Operating cash flow hedges

   $ (39   Costs applicable to sales

Forward starting swap hedges

     3     Interest expense, net
  

 

 

   

Total before tax

     (36  

Tax (expense) benefit

     12    
  

 

 

   

Net of tax

   $ (24  
  

 

 

   

Total reclassifications for the period, net of tax

   $ (16  
  

 

 

   

 

(1) This accumulated other comprehensive income component is included in General and administrative and costs that benefit the inventory/production process. Refer to Note 2 in the Newmont Annual Report on Form 10-K for the year ended December 31, 2012 for information on costs that benefit the inventory/production process.

 

24


Table of Contents

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    NET CHANGE IN OPERATING ASSETS AND LIABILITIES

Net cash provided from operations attributable to the net change in operating assets and liabilities is composed of the following:

 

     Three Months Ended March 31,  
     2013     2012  

Decrease (increase) in operating assets:

    

Trade and accounts receivable

   $ 115     $ (21

Inventories, stockpiles and ore on leach pads

     (230     (201

EGR refinery assets

     308       319  

Other assets

     (20     (74

Increase (decrease) in operating liabilities:

    

Accounts payable and other accrued liabilities

     (144     (32

EGR refinery liabilities

     (308     (319

Reclamation liabilities

     (9     (28
  

 

 

   

 

 

 
   $ (288   $ (356
  

 

 

   

 

 

 

NOTE 24    CONDENSED CONSOLIDATING FINANCIAL STATEMENTS

The following Condensed Consolidating Financial Statements are presented to satisfy disclosure requirements of Rule 3-10(e) of Regulation S-X resulting from the inclusion of Newmont USA Limited (“Newmont USA”), a wholly-owned subsidiary of Newmont, as a co-registrant with Newmont on debt securities issued under a shelf registration statement on Form S-3 filed under the Securities Act of 1933 under which securities of Newmont (including debt securities guaranteed by Newmont USA) may be issued (the “Shelf Registration Statement”). In accordance with Rule 3-10(e) of Regulation S-X, Newmont USA, as the subsidiary guarantor, is 100% owned by Newmont, the guarantees are full and unconditional, and no other subsidiary of Newmont guaranteed any security issued under the Shelf Registration Statement. There are no restrictions on the ability of Newmont or Newmont USA to obtain funds from its subsidiaries by dividend or loan.

At December 31, 2012, errors were identified in the previously reported condensed consolidating financial statements resulting from incorrectly applying the provisions of Rule 3-10(e) of Regulation S-X related to the presentation of the financial information of its subsidiary guarantor, Newmont USA. In the previously reported information, the Company presented Newmont USA on a consolidated basis with its non-guarantor subsidiaries and under Rule 3-10 of Regulation S-X Newmont USA should have presented its investment in subsidiaries based upon its proportionate share of its non-guarantor subsidiaries’ net assets (similar to the equity method of accounting). In addition, the Company corrected the Newmont Mining Corporation column for investments in subsidiaries previously presented in the Eliminations column. The tables following the revised condensed consolidating financial statements illustrate the effects of the errors, which relate to the columns for Newmont Mining Corporation, Newmont USA, Other Subsidiaries and Eliminations, on previously reported condensed consolidating financial information for the three months ended March 31, 2012.

The errors to the Newmont USA column for the incorrect presentation resulted in no change in previously reported line items for net income attributable to Newmont and stockholders’ equity. It did however have a significant impact on the previously reported cash balance, and cash flow from operations, investing and financing activities of Newmont USA as a result of the deconsolidation of its subsidiaries and the one line proportionate accounting pick up. Further, the Other Subsidiaries column changed by corresponding adjustments and to give effect to intercompany balances to include the non-guarantor subsidiaries of Newmont USA and the Eliminations column changes as a result of the above changes. In addition, the Company corrected an error in the Newmont Mining Corporation column related to stockholders’ equity and investment in subsidiaries. This was a result of a gain associated with a partial sale of a subsidiary that was previously included in the Eliminations column. The cash flow statement in the Newmont Mining Corporation column was revised to reflect earnings from subsidiaries, net of dividends received.

 

25


Table of Contents

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 concluded these errors were not material individually or in the aggregate to any of the previously issued financial statements taken as a whole. These errors had no impact on the consolidated financial statements of Newmont or any debt covenants and had no impact on the ability of Newmont’s subsidiaries to dividend cash to Newmont. The impact of these corrections to the applicable prior year period is reflected in the revised financial information and notes below.

The Company will revise the June 30, 2012 and September 30, 2012 financial statements to reflect the revisions discussed above in the Quarterly Reports on Form 10-Q for the quarterly periods in 2013.

 

     Three Months Ended March 31, 2013  

Condensed Consolidating Statement of Income

   Newmont
Mining
Corporation
    Newmont
USA
    Other
Subsidiaries
    Eliminations     Newmont
Mining
Corporation
Consolidated
 
          
          
          

Sales

   $ —        $ 488     $ 1,689     $ —       $ 2,177  

Costs and expenses

          

Costs applicable to sales (1)

     —         220       824       —         1,044  

Amortization

     —         40       227       —         267  

Reclamation and remediation

     —         2       16       —         18  

Exploration

     —         8       51       —         59  

Advanced projects, research and development

     —         12       40       —         52  

General and administrative

     —         30       26       —         56  

Other expense, net

     —         16       84       —         100  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
     —         328       1,268       —         1,596  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Other income (expense)

          

Other income, net

     —         4       22       —         26  

Interest income - intercompany

     48       7       (2     (53     —    

Interest expense - intercompany

     (3     —         (50     53       —    

Interest expense, net

     (65     (2     2       —         (65
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
     (20     9       (28     —         (39
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income before income and mining tax and other items

     (20     169       393       —         542  

Income and mining tax expense

     7       (50     (138     —         (181

Equity income (loss) of affiliates

     328       115       43       (490     (4
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income from continuing operations

     315       234       298       (490     357  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income

     315       234       298       (490     357  

Net income attributable to noncontrolling interests

     —         —         (67     25       (42
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income attributable to Newmont stockholders

   $ 315     $ 234     $ 231     $ (465   $ 315  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Comprehensive income

   $ 254     $ 238     $ 190     $ (387   $ 295  

Comprehensive income attributable to noncontrolling interests

     —         —         (66     25       (41
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Comprehensive income attributable to Newmont stockholders

   $ 254     $ 238     $ 124     $ (362   $ 254  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

(1) 

Excludes Amortization and Reclamation and remediation.

 

26


Table of Contents

NEWMONT MINING CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)

(dollars in millions, except per share, per ounce and per pound amounts)

 

     Three Months Ended March 31, 2012  

Condensed Consolidating Statement of Income

   Newmont
Mining
Corporation
    Newmont
USA
    Other
Subsidiaries
    Eliminations     Newmont
Mining
Corporation
Consolidated
 
          
          
          

Sales

   $  —       $ 585     $ 2,098     $ —       $ 2,683  

Costs and expenses

          

Costs applicable to sales (1)

     —         252       765       —         1,017  

Amortization

     —         36       195       —         231  

Reclamation and remediation

     —         2       14       —         16  

Exploration

     —         19       69       —         88  

Advanced projects, research and development

     —         12       90       —         102  

General and administrative

     —         19       35       —         54  

Other expense, net

     —         7       113       —         120  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
     —         347       1,281       —         1,628  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Other income (expense)

          

Other income, net

     2       8       23       —         33  

Interest income - intercompany

     40       8       (1     (47     —    

Interest expense - intercompany

     (5     (1     (41     47       —    

Interest expense, net

     (51     (1     —         —         (52
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
     (14     14       (19     —         (19
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income before income and mining tax and other items

     (14     252       798       —         1,036  

Income and mining tax expense

     5       (69     (279     —         (343

Equity income (loss) of affiliates

     499       241       69       (828     (19
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income from continuing operations

     490       424       588       (828     674  

Income (loss) from discontinued operations

     —         —         (71     —         (71
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income

     490       424       517       (828     603  

Net income attributable to noncontrolling interests

     —         —         (148     35       (113
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income attributable to Newmont stockholders

   $ 490     $ 424     $ 369     $ (793   $ 490  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Comprehensive income

   $ 496     $ 425     $ 504     $ (814   $ 611  

Comprehensive income attributable to noncontrolling interests

     —         —         (150     35       (115
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Comprehensive income attributable to Newmont stockholders

   $ 496     $ 425     $ 354     $ (779   $ 496  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

(1) 

Excludes Amortization and Reclamation and remediation.

 

27


Table of Contents

NEWMONT MINING CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)

(dollars in millions, except per share, per ounce and per pound amounts)

 

    For the Three Months Ended March 31, 2012  
    Newmont USA     Other Subsidiaries     Eliminations  

Condensed Consolidating Statement of
Income

  As Previously
Presented
    Change     As Currently
Presented
    As Previously
Presented
    Change     As Currently
Presented
    As Previously
Presented
    Change     As Currently
Presented
 

Sales

  $ 1,617     $ (1,032   $ 585     $ 1,066     $ 1,032     $ 2,098     $ —       $ —       $ —    

Costs and expenses

                 

Costs applicable to sales

    563       (311     252       465       300       765       (11     11       —    

Amortization

    130       (94     36       101       94       195       —         —         —    

Reclamation and remediation

    11       (9     2       5       9       14       —         —         —    

Exploration

    53       (34     19       35       34       69       —         —         —    

Advanced projects, research and development

    88       (76     12       14       76       90       —         —         —    

General and administrative

    42       (23     19       1       34       35       11       (11     —    

Other expense, net

    47       (40     7       73       40       113       —         —         —    
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

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