Newmont Achieves 2022 Guidance; Provides Stable 2023 and Improving Longer-Term Outlook; Declares $0.40 Fourth Quarter Dividend

Newmont Corporation (NYSE: NEM, TSX: NGT) (Newmont or the Company) today announced fourth quarter and full year 2022 results, as well as its 2023 and longer-term outlook.

Achieved 2022 Guidance, Safely Delivered on our Commitments

  • Produced 6.0 million gold ounces and 1.3 million gold equivalent ounces from copper, silver, lead and zinc; achieved original production guidance range set in December 2021
  • Gold all-in sustaining costs* were $1,211 per ounce, in-line with updated guidance range despite global cost pressures throughout the year
  • Generated $1.1 billion in free cash flow* after $2.7 billion of meaningful reinvestment into the business to advance our most profitable near-term projects
  • Safely delivered on our commitments and remained focused on fatality risk management; recognized as the Top Miner in the 2022 Dow Jones Sustainability Index for our unwavering commitment to leading ESG practices

Announced 2023 and Longer-Term Outlook; Underpinned by Strong Gold Production and Improving Costs**

  • As previously signaled, 2023 production guidance is expected to be between 5.7 and 6.3 million gold ounces; steadily improves longer-term, driven by strong production from world-class assets and an unmatched project pipeline
  • Gold all-in sustaining costs* are expected to be between $1,150 and $1,250 per ounce in 2023; incorporates an additional 3% of cost inflation compared to 2022, which is expected to be largely offset by Full Potential cost efficiencies
  • Sustaining capital spend of $1.0 to $1.2 billion in 2023; remaining steady across the five-year period
  • Development capital spend of $1.2 to $1.4 billion in 2023; meaningful reinvestment to strengthen our global portfolio

2023 Dividend Payout Range Established Within Industry-Leading Framework***

  • Provides a sustainable base dividend of $1.00 per share; at base reserves price of $1,400 per ounce
  • Incremental dividend payout of $0.40 to $0.80 per share; calibrated at $1,700 per ounce and incorporating free cash flow impacts from industry-wide inflationary pressures and a period of meaningful reinvestment
  • Annualized dividend payout range of $1.40 to $1.80 per share***; subject to quarterly approval by Board of Directors
  • Declared fourth quarter 2022 dividend of $0.40 per share****; set at the midpoint of the 2023 dividend payout range

"Newmont safely delivered on our commitments in 2022 and finished the year from a position of strength, meeting our full year production guidance and generating $4.6 billion in adjusted EBITDA and $1.1 billion in free cash flow. As we look ahead to 2023 and beyond, we expect to steadily increase production and improve costs from our balanced, global portfolio of world-class assets and robust project pipeline. We remain committed to our disciplined and balanced approach to capital allocation, allowing us to maintain an investment-grade balance sheet while steadily reinvesting in the business and providing superior returns to shareholders through our industry-leading dividend framework. With more than 100 years of history and experience, Newmont is well-positioned to continue safely delivering industry-leading results, while remaining grounded in our values and driven by our purpose to create value and improve lives through sustainable and responsible mining."

- Tom Palmer, President and Chief Executive Officer

*Non-GAAP metrics; see reconciliations at the end of this release.

**See discussion of outlook and cautionary statement at the end of this release regarding forward-looking statements.

***Expectations regarding 2023 dividend levels are forward-looking statements. The dividend framework is non-binding, and an annualized dividend has not been declared by the Board. The declaration and payment of future quarterly dividends remains at the discretion of the Board of Directors and will depend on the Company’s financial results, cash flow and cash requirements, future prospects, and other factors deemed relevant by the Board. See cautionary statement at the end of this release.

****The dividend of $0.40 per share of common stock for the fourth quarter of 2022 is payable on March 23, 2023 to holders of record at the close of business on March 9, 2023.

Newmont Delivers Strong Fourth Quarter Performance; Achieves Full-Year 2022 Guidance

 

Q4'22

Q3'22

Q4'21

FY'22

FY'21

Average realized gold price ($ per ounce)

$

1,758

 

$

1,691

 

$

1,798

 

$

1,792

 

$

1,788

Attributable gold production (million ounces)

 

1.63

 

 

1.49

 

 

1.62

 

 

5.96

 

 

5.97

 

Gold costs applicable to sales (CAS) ($ per ounce)

$

940

 

$

968

 

$

802

 

$

933

 

$

785

 

Gold all-in sustaining costs (AISC) ($ per ounce)

$

1,215

 

$

1,271

 

$

1,056

 

$

1,211

 

$

1,062

 

GAAP net (loss) income from continuing operations ($ millions)

$

(1,488

)

$

218

 

$

(61

)

$

(459

)

$

1,109

 

Adjusted net income ($ millions)

$

348

 

$

212

 

$

624

 

$

1,468

 

$

2,371

 

Adjusted net income per share ($/diluted share)

$

0.44

 

$

0.27

 

$

0.78

 

$

1.85

 

$

2.96

 

Adjusted EBITDA ($ millions)

$

1,161

 

$

850

 

$

1,599

 

$

4,550

 

$

5,963

 

Cash flow from continuing operations ($ millions)

$

1,010

 

$

466

 

$

1,299

 

$

3,198

 

$

4,266

 

Capital expenditures ($ millions)

$

646

 

$

529

 

$

441

 

$

2,131

 

$

1,653

 

Free cash flow ($ millions)

$

364

 

$

(63

)

$

858

 

$

1,067

 

$

2,613

 

FOURTH QUARTER AND FULL YEAR 2022 HIGHLIGHTS

  • Achieved original production guidance range set in December 2021; produced 1.63 million attributable gold ounces and 296 thousand attributable gold equivalent ounces (GEO) of co-products in the fourth quarter, for a total of 6.0 million attributable gold ounces and 1.3 million attributable co-product GEOs in 2022
  • Reported fourth quarter gold Costs Applicable to Sales (CAS)* of $940 per ounce and All-In Sustaining Costs (AISC)* of $1,215; full year CAS of $933 per ounce and AISC of $1,211 per ounce are in line with updated guidance amidst industry-wide cost pressures
  • Generated $1.0 billion of cash from continuing operations and $364 million of Free Cash Flow in the fourth quarter, for a full-year total of $3.2 billion and $1.1 billion, respectively*
  • Ended the year with $2.9 billion of consolidated cash, $829 million of short-term time deposits and $6.7 billion of liquidity; reported net debt to adjusted EBITDA ratio of 0.5x*
  • Reported Adjusted Net Income (ANI)* of $0.44 per share and Adjusted EBITDA* of $1.2 billion for the fourth quarter, for a full-year total of $1.85 per share and $4.6 billion, respectively
  • Returned $1.7 billion to shareholders in 2022
  • Reported increased reserves of 96 million gold ounces and resources of 111 million gold ounces**; significant upside to other metals, including copper, silver, lead and zinc
  • Advanced profitable near-term projects, including Tanami Expansion 2, Ahafo North, Pamour and Cerro Negro District Expansion 1
  • Safely delivered on our commitments and remained focused on fatality risk management; recognized as the Top Miner in the 2022 Dow Jones Sustainability Index for our unwavering commitment to leading ESG practices

*Non-GAAP metrics; see reconciliations at the end of this release.

** Total resources presented includes Measured and Indicated resources of 75.3 million gold ounces and Inferred resources of 36.1 million gold ounces. See cautionary statement at the end of this release.

FOURTH QUARTER 2022 ADJUSTED NET INCOME

In the fourth quarter of 2022, Newmont reported Adjusted Net Income of $348 million or $0.44 per share due to higher sales volumes and higher realized gold prices compared to the third quarter. Significant non-cash accounting charges were adjusted out of the Company's earnings, compared to GAAP Net Loss from Continuing Operations of $(1.5) billion, primarily related to impairment charges of $1.3 billion and reclamation charges of $700 million recorded at year end in conjunction with the Company's annual review.

  • $511 million impairment of long-lived assets at CC&V; primarily due to the decision to transition to a leach-only operation, resulting in lower future production and reduced future cash flows from the site
  • $459 million impairment of the full goodwill balance at Cerro Negro; primarily due to lower discounted cash flows from an increase in the country specific discount rate, reflective of current macroeconomic risk and uncertainty in Argentina
  • $341 million impairment of the full goodwill balance at Porcupine; primarily due to lower discounted cash flows from higher costs driven by inflationary pressures and the expansion of the active tailings storage facility, ensuring compliance with the Global Industry Standard on Tailings Management (GISTM)
  • $529 million reclamation adjustment at Yanacocha; primarily due to updated capital costs for construction of the two water treatment plants due to updated design considerations, recent inflation and supply chain disruption impacts on the estimated construction costs and higher post-closure management costs
  • $91 million reclamation adjustment at Porcupine; primarily due to higher water management and other closure costs due to inflationary pressures

The site-specific goodwill amounts originated from the Goldcorp purchase price allocation four years ago, which was based on best estimates of each site's value and country-risk assumptions at that time. Non-cash accounting charges have been adjusted out of the Company's earnings metrics for the fourth quarter and full year.

FOURTH QUARTER AND FULL YEAR 2022 FINANCIAL AND PRODUCTION SUMMARY

Attributable gold production1 for the year remained flat at 5,956 thousand ounces compared to the prior year.

Attributable gold production for the fourth quarter remained flat at 1,630 thousand ounces compared to the prior year quarter.

Gold CAS totaled $5.4 billion for the year. Gold CAS per ounce2 increased 19 percent to $933 per ounce compared to the prior year, primarily due to higher direct operating costs as a result of inflationary pressures, driven by higher labor costs and higher input commodity prices, notably fuel and energy costs. In addition, costs were impacted by inventory write-downs at Nevada Gold Mines, Yanacocha, CC&V and Akyem, lower by-product credits, the Peñasquito Profit-Sharing Agreement entered into in 2022 and lower gold sales volumes.

Gold CAS increased 17 percent to $1.5 billion from the prior year quarter. Gold CAS per ounce increased 17 percent to $940 per ounce compared to the prior year quarter, primarily due to higher direct operating costs as a result of inflationary pressures and higher third party royalties.

Gold AISC per ounce3 increased 14 percent to $1,211 per ounce compared to the prior year, primarily due to higher CAS per ounce and higher sustaining capital spend.

Gold AISC per ounce increased 15 percent to $1,215 per ounce compared to the prior year quarter, primarily due to higher CAS per ounce and higher sustaining capital spend.

Attributable GEO production from other metals for the year remained largely flat at 1,275 thousand ounces compared to the prior year.

Attributable GEO production from other metals for the quarter decreased 7 percent to 296 thousand ounces from the prior year quarter primarily due to lower co-product grades mined at Peñasquito, partially offset by higher copper grade mined at Boddington.

CAS from other metals totaled $1.0 billion for the year. CAS per GEO2 increased 28 percent to $819 per ounce from the prior year, primarily due to higher direct operating costs as a result of inflationary pressures, as well as the Peñasquito Profit-Sharing Agreement entered into in 2022.

CAS from other metals totaled $267 million for the quarter. CAS per GEO increased 16 percent to $857 per ounce from the prior year quarter, primarily due to higher direct operating costs as a result of inflationary pressures and higher allocation of costs to co-product metals, partially offset by favorable inventory changes.

AISC per GEO3 for the year increased 24 percent to $1,114 per ounce from the prior year primarily due to higher CAS from other metals, higher treatment and refining costs, and higher sustaining capital spend.

AISC per GEO for the quarter increased 16 percent to $1,166 per ounce from the prior year quarter primarily due to higher CAS from other metals, higher treatment and refining costs, and higher sustaining capital spend.

Average realized gold price for the year increased $4 per ounce to $1,792 per ounce compared to the prior year, including $1,800 per ounce of gross price received and $8 per ounce reductions for treatment and refining charges.

Average realized gold price for the quarter decreased $40 per ounce to $1,758 per ounce compared to the prior year quarter, including $1,751 per ounce of gross price received, the favorable impact of $12 per ounce mark-to-market on provisionally-priced sales and $5 per ounce reductions for treatment and refining charges.

Revenue for the year remained largely flat at $11.9 billion compared to the prior year.

Revenue for the quarter decreased 6 percent to $3.2 billion compared to the prior year quarter, primarily due to lower realized gold prices.

Net loss from continuing operations attributable to Newmont stockholders for the year was $(0.5) billion or $(0.58) per diluted share, a decrease of $1.6 billion from the prior year primarily due to the impairment of goodwill at Cerro Negro of $459 million and Porcupine of $341 million, impairment of long-lived assets at CC&V of $511 million, higher CAS predominately resulting from cost inflation impacts and lower sales volumes for all metals except copper. These decreases were partially offset by lower reclamation and remediation expense resulting from adjustments mainly related to non-operating Yanacocha sites, lower income tax expense and the loss on assets held for sale in 2021 related to the Conga mill assets.

Net loss from continuing operations attributable to Newmont stockholders for the quarter was $(1.5) billion or $(1.87) per diluted share, a decrease of $1.4 billion from the prior year quarter primarily due to the impairment charges recorded in the fourth quarter and higher CAS predominately resulting from cost inflation impacts. These decreases were partially offset by lower reclamation and remediation expense resulting from adjustments mainly related to non-operating Yanacocha sites, and lower income and mining tax expense.

Adjusted net income4 for the year was $1.5 billion or $1.85 per diluted share, compared to $2.4 billion or $2.96 per diluted share in the prior year. Primary adjustments to 2022 net income include total impairment charges of $1.3 billion, reclamation and remediation adjustments primarily related to non-operating Yanacocha and Porcupine sites of $713 million and a pension settlement charge of $137 million.

Adjusted net income for the quarter was $348 million or $0.44 per diluted share, compared to $624 million or $0.78 per diluted share in the prior year quarter. Primary adjustments to fourth quarter net income include total impairment charges of $1.3 billion, reclamation and remediation adjustments of $700 million and a gain on asset and investment sales of $61 million primarily related to the sale of the investment in MARA.

Adjusted EBITDA5 for the year decreased 24 percent to $4.6 billion, compared to $6.0 billion for the prior year.

Adjusted EBITDA for the quarter decreased 27 percent to $1.2 billion for the quarter, compared to $1.6 billion for the prior year quarter.

Capital expenditures6 increased 29 percent to $2.1 billion for the full year and increased 46 percent to $646 million for the quarter, compared to prior year, primarily due to higher development capital spend during a period of meaningful reinvestment, as well as slightly higher sustaining capital. Development capital expenditures in 2022 primarily related to Tanami Expansion 2, Yanacocha Sulfides, Ahafo North, Pamour and Cerro Negro District Expansion 1.

Consolidated operating cash flow from continuing operations decreased 25 percent to $3.2 billion for the full year compared to the prior year, primarily due to an increase in operating cash expenditures resulting from the impacts of inflation on input costs and lower consolidated sales volumes, as well as several payments made during the year, including a $95 million payment related to the Peñasquito profit-sharing agreement related to 2021 results, an $83 million payment related to the Ghanaian employment model change and a $39 million payment related to our strategic alliance with Caterpillar Inc.

Consolidated operating cash flow from continuing operations decreased 22 percent to $1.0 billion for the quarter compared to the prior year quarter, primarily due to an increase in operating cash expenditures resulting from the impacts of inflation on input costs, lower consolidated sales volumes and lower average realized metal prices for all metals except silver.

Free Cash Flow7 decreased to $1.1 billion for the full year and $0.4 billion for the quarter, compared to the prior year, primarily due to lower operating cash flow and higher capital expenditures.

Balance sheet and liquidity remained strong in 2022, ending the year with $2.9 billion of consolidated cash and $829 million of time deposits with a maturity of less than one year, with approximately $6.7 billion of total liquidity; reported net debt to adjusted EBITDA of 0.5x8.

Nevada Gold Mines (NGM) attributable gold production for the year was 1,169 thousand ounces, with CAS of $989 per ounce2 and AISC of $1,220 per ounce3. NGM attributable gold production for the quarter was 324 thousand ounces, with CAS of $934 per ounce and AISC of $1,186 per ounce. NGM EBITDA9 was $0.9 billion for the full year and $251 million for the quarter.

Pueblo Viejo (PV) attributable gold production was 285 thousand ounces for the year and 65 thousand ounces for the quarter. Cash distributions received from the Company's equity method investment of $165 million for the year and $27 million for the fourth quarter.

1 Attributable gold production includes 285 thousand ounces and 65 thousand ounces from the Company’s equity method investment in Pueblo Viejo (40%) in 2022 and the fourth quarter, respectively.

2 Non-GAAP measure. See end of this release for reconciliation to Costs applicable to sales.

3 Non-GAAP measure. See end of this release for reconciliation to Costs applicable to sales.

4 Non-GAAP measure. See end of this release for reconciliation to Net income (loss) attributable to Newmont stockholders.

5 Non-GAAP measure. See end of this release for reconciliation to Net income (loss) attributable to Newmont stockholders.

6 Capital expenditures refers to Additions to property plant and mine development from the Consolidated Statements of Cash Flows.

7 Non-GAAP measure. See end of this release for reconciliation to Net cash provided by operating activities.

8 Non-GAAP measure. See end of this release for reconciliation.

9 Non-GAAP measure. See end of this release for reconciliation.

Progressing Profitable Near-Tear Projects from Unmatched Organic Pipeline

Newmont’s project pipeline supports stable production with improving margins and mine life*. Newmont's 2023 and longer-term outlook includes current development capital costs and production related to Tanami Expansion 2, Ahafo North, Pamour and Cerro Negro District Expansion 1. Development capital outlook for 2023 and 2024 includes spend related to the Yanacocha Sulfides project ahead of the investment decision planned for late 2024; additional development capital spend and all metal production for Yanacocha Sulfides has been excluded from longer-term outlook beginning in 2025.

Additional projects not listed below represent incremental improvements to the Company's outlook.

  • Tanami Expansion 2 (Australia) secures Tanami’s future as a long-life, low-cost producer by extending mine life beyond 2040 through the addition of a 1,460 meter hoisting shaft and supporting infrastructure to process 3.3 million tonnes per year and provide a platform for future growth. The expansion is expected to increase average annual gold production by approximately 150,000 to 200,000 ounces per year for the first five years and reduce operating costs by approximately 10 percent, bringing average all-in sustaining costs to $900 to $1,000 per ounce for Tanami (2026-2030). Commercial production for the project is expected in the second half of 2025. As previously indicated in July 2022, total capital costs are estimated to be between $1.2 and $1.3 billion, incorporating the significant impacts from Covid-related restrictions and protocols and the current market conditions for labor and materials. Development costs (excluding capitalized interest) since approval were $499 million, of which $215 million related to 2022.
  • Ahafo North (Africa) expands our existing footprint in Ghana with four open pit mines and a stand-alone mill located approximately 30 kilometers from the Company’s Ahafo South operations. The project is expected to add between 275,000 and 325,000 ounces per year with all-in sustaining costs of $800 to $900 per ounce for the first five full years of production. Ahafo North is the best unmined gold deposit in West Africa with approximately 3.8 million ounces of Reserves and 1.4 million ounces of Measured, Indicated and Inferred Resources and significant upside potential to extend beyond Ahafo North’s current 13-year mine life. Commercial production for the project is expected in the second half of 2025. As previously indicated in July 2022, total capital costs are estimated to be between $950 and $1,050 million, incorporating the cost associated with delayed land access. Development costs (excluding capitalized interest) since approval were $212 million, of which $145 million related to 2022.
  • Yanacocha Sulfides (South America) will develop the first phase of sulfide deposits and an integrated processing circuit, including an autoclave to produce 45% gold, 45% copper and 10% silver. The first phase focuses on developing the Yanacocha Verde and Chaquicocha deposits to extend Yanacocha’s operations beyond 2040 with second and third phases having the potential to extend life for multiple decades. In the third quarter of 2022, Newmont announced the decision to delay the project in order to manage project execution risk, move out of a period of significant inflation and to balance development capital cash flows. Management continues to assess the execution and project timeline, up to and including transitioning Yanacocha operations into full closure; the project remains subject to an investment decision. Development capital spend on the project is expected to be approximately $300 to $350 million per year in 2023 and 2024 related to advanced engineering, procurement and completing camp construction.
  • Pamour (North America) extends the life of Porcupine and maintains production beyond 2024. The project will optimize mill capacity, adding volume and supporting high grade ore from Borden and Hoyle Pond, while supporting further exploration in a highly prospective and proven mining district. An investment decision is now expected in late 2023 as opportunities have been identified to extend production from current operations, allowing for a deferral of project spending. Formal updates to capital estimates and estimated project completion will be provided closer to the investment decision.
  • Cerro Negro District Expansion 1 (South America) includes the simultaneous development of the Marianas and Eastern districts to extend the mine life of Cerro Negro beyond 2030. The project is expected to improve production to above 350,000 ounces beginning in 2024 and provides a platform for further exploration and future growth through additional expansions. Development capital costs for the project are now estimated to be between $350 and $450 million, incorporating inflationary pressures and supply chain impacts in Argentina.

* Project estimates remain subject to change based upon uncertainties, including future market conditions, continued impacts from the COVID-19 pandemic, the Russian invasion of Ukraine, inflation, commodities and raw materials prices, supply chain disruptions, labor markets, engineering and mine plan assumptions, future funding decisions, consideration of strategic capital allocation and other factors, which may impact estimated capital expenditures, AISC and timing of projects. See end of this release for cautionary statement regarding forward-looking statements.

2023 and Longer-Term Outlook Underpinned by Strong Production and Improving Costs

Guidance Metric

2023E

2024E

2025E

2026E

2027E

Attributable Gold Production (Moz)

5.7 - 6.3

5.9 - 6.5

5.9 - 6.5

6.1 - 6.7

6.1 - 6.7

Gold CAS ($/oz)*

$870 - $970

$850 - $950

$780 - $880

$750 - $850

$750 - $850

Gold AISC ($/oz)*

$1,150 - $1,250

$1,100 - $1,200

$1,000 - $1,100

$1,000 - $1,100

$1,000 - $1,100

Sustaining Capital**

$1,000 - $1,200

$1,000 - $1,200

$1,000 - $1,200

$1,000 - $1,200

$1,000 - $1,200

Development Capital**

$1,200 - $1,400

$1,200 - $1,400

$800 - $1,000

$500 - $700

$300 - $500

*Consolidated basis; **Attributable basis

2023 AND LONGER-TERM OUTLOOK HIGHLIGHTS

  • As previously signaled, 2023 production guidance is between 5.7 and 6.3 million gold ounces; steadily improves to between 6.1 and 6.7 million ounces in the longer-term, driven by strong production from world-class assets and an unmatched organic project pipeline; further enhanced by profitable production from other metals
  • Gold CAS guidance is $870 to $970 per ounce and Gold AISC guidance is $1,150 to $1,250 per ounce for 2023, improving longer-term due to declining inflationary pressure assumptions and increased production levels
  • Sustaining capital guidance is $1.0 to $1.2 billion for 2023, consistent with longer-term averages
  • Development capital guidance is $1.2 to $1.4 billion for 2023 and 2024 during a period of meaningful reinvestment; longer-term development capital is expected to average between $0.8 to $1.0 billion per year

Newmont’s outlook reflects increasing gold production and ongoing investment into its operating assets and most promising growth prospects. Newmont's reserves and mine planning gold price assumption has been set at $1,400 per ounce. 2023 outlook assumes a $1,700 per ounce revenue gold price for CAS and AISC to reflect current cost environment including royalties and production taxes. For 2023, Newmont has assumed normalizing levels of inflation, improving throughout the year, with a year-over-year average escalation rate of approximately 3%.

Outlook includes development capital, costs and production related to Tanami Expansion 2, Ahafo North, Pamour and Cerro Negro District Expansion 1. Development capital outlook for 2023 and 2024 includes spend related to the Yanacocha Sulfides project ahead of the investment decision planned for late 2024; additional development capital spend and all metal production for Yanacocha Sulfides has been excluded from longer-term outlook beginning in 2025. As previously signaled, Newmont is critically assessing options for the Yanacocha Sulfides project, up to and including transitioning Yanacocha operations into full closure, which may have an impact on expected capital spend included in outlook for 2023 and 2024.

Please see the cautionary statement and footnotes for additional information.

ASSUMPTIONS AND SENSITIVITIES

 

Assumption

Change (-/+)

FCF Impact ($M)

(+/-)

AISC Impact ($/oz)

(-/+)

Gold ($/oz)

$1,700

$100

$400

$5

Australian Dollar

$0.70

$0.05

$60

$15

Canadian Dollar

$0.77

$0.05

$35

$10

Oil ($/bbl)

$90

$10

$20

$5

Copper ($/lb)

$3.50

$0.25

$15

$—

Silver ($/oz)

$20.00

$1.00

$15

$2

Lead ($/lb)

$0.90

$0.10

$10

$—

Zinc ($/lb)

$1.35

$0.10

$30

$—

Assuming a 35% incremental tax rate, an $100 per ounce increase in gold price would deliver an expected $400 million improvement in attributable free cash flow. Included within the attributable free cash flow sensitivity is a royalty and production tax impact of $5 per ounce for every $100 per ounce change in gold price.

2023 OPERATING COSTS BY CATEGORY

 

Percent of Total*

Change in Cost (-/+)

FCF Impact ($M)

(+/-)

AISC Impact ($/oz)

(-/+)

Labor Costs

50%

5%

$90

$25

Materials & Consumables

30%

5%

$50

$15

Fuel & Energy

15%

5%

$30

$10

*"Other” category of 5% primarily includes freight, technology-related costs, employee administrative costs, rents and operating leases.

PRODUCTION AND COST OUTLOOK

Guidance Metric

2023E

2024E

2025E

2026E

2027E

Attributable Gold Production (Moz)

5.7 - 6.3

5.9 - 6.5

5.9 - 6.5

6.1 - 6.7

6.1 - 6.7

Gold CAS ($/oz)*

$870 - $970

$850 - $950

$780 - $880

$750 - $850

$750 - $850

Gold AISC ($/oz)*

$1,150 - $1,250

$1,100 - $1,200

$1,000 - $1,100

$1,000 - $1,100

$1,000 - $1,100

*Consolidated basis

Attributable gold production is expected to be steadily improving at 5.7 to 6.7 million ounces across the five-year period. This is supported by a steady base from Newmont's world class assets and is further enhanced by the Company’s other operating mines and ownership in the Nevada Gold Mines and Pueblo Viejo joint ventures. The 2023 outlook of 5.7 to 6.3 million ounces is expected to remain stable compared to 2022, driven by strong production at Ahafo and Boddington, partially offset by decreases at Peñasquito due to planned mine sequencing, the updated mine plan for a leach-only operation at CC&V and the previously signaled delay of commercial production at Ahafo North and Tanami Expansion 2 to 2025. Beginning in 2024, production is expected to increase to between 5.9 and 6.5 million ounces, increasing to between 6.1 to 6.7 million ounces longer-term in 2026, due to natural mine sequencing and the inclusion of profitable production from Ahafo North and Tanami Expansion 2, in addition to reaching higher gold grade at Peñasquito.

Costs are expected to improve throughout the five-year period, driven by declining inflationary pressure assumptions, increasing production levels and cost reduction initiatives. 2023 CAS is expected to be between $870 and $970 per ounce, with approximately 3% in cost escalation assumed as cost pressures are expected to persist from 2022. Longer-term, CAS is expected to improve to between $750 and $850 per ounce beginning in 2026 with the benefit of the near-term projects at Tanami and Ahafo North contributing profitable production, in addition to an improving cost and production profile at Nevada Gold Mines. AISC is expected to be between $1,150 and $1,250 per ounce in 2023, and improve to between $1,000 and $1,100 per ounce longer-term beginning in 2025.

CO-PRODUCT PRODUCTION AND COST OUTLOOK

Guidance Metric

2023E

2024E

2025E

2026E

2027E

Copper ($3.50/lb price assumption)

 

 

 

 

 

Copper Production (Mlb)

95 - 105

85 - 95

45 - 55

45 - 55

55 - 65

Copper CAS ($/lb)*

$1.85 - $2.15

 

 

 

 

Copper AISC ($/lb)*

$2.35 - $2.65

 

 

 

 

Silver ($20/oz price assumption)

 

 

 

 

 

Silver Production (Moz)

31 - 35

32 - 36

35 - 39

28 - 32

30 - 34

Silver CAS ($/oz)*

$11.10 - $12.10

 

 

 

 

Silver AISC ($/oz)*

$15.50 - $16.50

 

 

 

 

Lead ($0.90/lb price assumption)

 

 

 

 

 

Lead Production (Mlb)

170 - 190

190 - 210

210 - 230

160 - 180

250 - 270

Lead CAS ($/lb)*

$0.55 - $0.65

 

 

 

 

Lead AISC ($/lb)*

$0.70 - $0.80

 

 

 

 

Zinc ($1.35/lb price assumption)

 

 

 

 

 

Zinc Production (Mlb)

420 - 460

550 - 590

580 - 620

460 - 500

400 - 440

Zinc CAS ($/lb)*

$0.65 - $0.75

 

 

 

 

Zinc AISC ($/lb)*

$1.05 - $1.15

 

 

 

 

*Consolidated basis

In 2023, Boddington is expected to have the highest copper production during the five-year period due to higher grades as a result of mine sequencing. Beginning in 2023 and continuing through 2025, Peñasquito is expected to deliver higher co-product production due to higher silver, lead and zinc content delivered from the Chile Colorado pit.

CAPITAL OUTLOOK

Guidance Metric ($M)

2023E

2024E

2025E

2026E

2027E

Sustaining Capital*

$1,000 - $1,200

$1,000 - $1,200

$1,000 - $1,200

$1,000 - $1,200

$1,000 - $1,200

Development Capital*

$1,200 - $1,400

$1,200 - $1,400

$800 - $1,000

$500 - $700

$300 - $500

*Sustaining capital is presented on an attributable basis; Capital outlook excludes amounts attributable to the Pueblo Viejo joint venture

Sustaining capital is expected to remain steady at $1 to $1.2 billion per year over the five year period, covering infrastructure, equipment and ongoing mine development. This incorporates slightly higher spend as compared to 2022 due to higher costs driven by inflationary pressures and increased projected spend on tailings facilities in compliance with the Global Industry Standard on Tailings Management (GISTM).

Development capital for the five-year outlook includes spend for Tanami Expansion 2 in Australia, Ahafo North in Ghana, Cerro Negro District Expansion 1 in Argentina, Pamour at Porcupine in Canada, as well as development capital related to the Company’s ownership interest in Nevada Gold Mines including Goldrush. Outlook for 2023 and 2024 includes development capital spend of approximately $300 to $350 million per year related to the Yanacocha Sulfides project under the assumption that an investment decision would be made in late 2024; remaining development capital beyond 2024 has been excluded from longer-term outlook. As previously signaled, Newmont is critically assessing options for the Yanacocha Sulfides project, up to and including transitioning Yanacocha operations into full closure, which may have an impact on expected capital spend included in outlook for 2023 and 2024.

Development capital estimates exclude contributions to support Newmont’s 40% interest in the Pueblo Viejo expansion, which is accounted for as an equity method investment.

EXPLORATION AND ADVANCED PROJECTS OUTLOOK

Guidance Metric ($M)

2023E

Exploration & Advanced Projects

$475 - $525

In 2023, investment in exploration and advanced projects is expected to increase slightly to between $475 and $525 million to advance greenfield exploration projects, extend mine life at existing operations and continue building reserves. We expect to invest approximately $225 million dollars in exploration expense to progress our most promising greenfield exploration projects including Esperance in French Guiana and the Coffee project in the Yukon. In addition, we expect to invest approximately $275 million in advanced projects spend, as we continue to advance studies associated with our robust pipeline of projects, including Galore Creek and Akyem Underground. Included in our expected advanced projects spend is approximately $40 million related to our strategic alliance with Caterpillar Inc.

CONSOLIDATED EXPENSE OUTLOOK

Guidance Metric ($M)

2023E

General & Administrative

$260 - $290

Interest Expense

$200 - $220

Depreciation & Amortization

$2,200 - $2,400

Adjusted Tax Rate a,b

32% - 36%

a The adjusted tax rate excludes certain items such as tax valuation allowance adjustments.

b Assuming average prices of $1,700 per ounce for gold, $3.50 per pound for copper, $20.00 per ounce for silver, $0.90 per pound for lead, and $1.35 per pound for zinc and achievement of current production, sales and cost estimates, we estimate our consolidated adjusted effective tax rate related to continuing operations for 2023 will be between 32%-36%.

The 2023 outlook for general and administrative costs remains flat at $260 to $290 million. Interest expense is expected to decrease slightly to between $200 to $220 million from higher levels of capitalized interest on development capital spend in 2023. Depreciation and amortization remains flat at $2.2 to $2.4 billion, with steady production expected in 2023 compared to 2022. The adjusted tax rate is increasing to between 32% and 36% due to higher costs and a lower of $1,700 per ounce gold price assumption, as compared to the $1,800 per ounce gold price assumption used for 2022 Outlook.

2023 SEASONALITY*

Guidance Metric

FY 2023 Outlook

H1 2023E

H2 2023E

Attributable Gold Production (Moz)

5.7 - 6.3

45%

55%

Newmont Managed Operations

Attributable Gold Production
(Koz)

FY 2023 Outlook

Q1 2023E

(% of Full Year)

Peñasquito

330 - 370

28%

Boddington

740 - 820

27%

Ahafo

675 - 745

15%

Tanami

420 - 460

10%

Cerro Negro

315 - 345

22%

Akyem

315 - 345

22%

Porcupine

285 - 315

24%

Éléonore

265 - 295

25%

Yanacocha

255 - 285

22%

Merian

235 - 265

26%

Musselwhite

200 - 220

16%

CC&V

160 - 180

26%

*Estimated 2023 seasonality remains subject to change and represents management’s expectations of future production results as of February 23, 2023.

In Q1 2023, we expect to produce approximately 21 percent of our full year gold guidance, driven by heavy weighting to the second half of the year at Ahafo and Cerro Negro due to planned mine sequence. In addition, first quarter production at Tanami was impacted by record rainfall, resulting in the ceasing of milling operations for a few weeks in February.

Refer to the 2023 Production and Cost Outlook by Site below for additional details.

2023 Dividend Payout Range Established Within Dividend Framework; Declares Fourth Quarter Dividend of $0.40 Per Share

Newmont today announced that its Board of Directors declared a dividend of $0.40 per share of common stock for the fourth quarter of 2022, payable on March 23, 2023 to holders of record at the close of business on March 9, 2023.

INDUSTRY-LEADING DIVIDEND FRAMEWORK

  • Base dividend of $1.00 per share at gold reserve price assumption of $1,400 per ounce
  • Variable component based on $40 million of incremental Free Cash Flow for every $100 per ounce increase above base gold price assumption; calibrated in increments of $300 per ounce
  • Variable component is assessed annually in alignment with the business planning cycle, considering the current macroeconomic environment and the current level of reinvestment in the business
  • Supported by strong and flexible investment grade balance sheet
  • Dividend payouts are reviewed and approved quarterly by Newmont's Board of Directors

MAINTAINING PREDICTABILITY IN 2023

  • Calibrating 2023 dividend at $1,700 per ounce, remaining conservative in a volatile macroeconomic environment
  • In addition, Newmont expects elevated levels of development capital to advance key projects in 2023 of approximately $400 million above the average annual investment level of $2.5 billion
  • As a result, incremental free cash flow at the $1,700 per ounce gold price assumption is expected to be approximately $800 million in 2023
  • Therefore, Newmont has set the variable, incremental dividend payout range of $0.40 to $0.80 per share, resulting in a 2023 annualized dividend payout range of $1.40 to $1.80 per share1

“Newmont remains committed to our industry-leading dividend framework, providing a stable base dividend of $1.00 per share and the opportunity to return a variable component based on incremental free cash flow at higher gold prices to shareholders. For 2023, Newmont has calibrated our dividend payout range to $1.40 to $1.80 per share, with a fourth quarter dividend declared of $0.40 per share. Two and a half years ago, Newmont was the first in the gold industry to introduced a structured dividend framework, and with this dividend declared we will have since returned over $4 billion to shareholders through dividends, clearly demonstrating our commitment to providing strong shareholder returns.”

- Tom Palmer, President and Chief Executive Officer

1 Expectations regarding 2023 dividend levels are forward-looking statements. The dividend framework is non-binding and an annual dividend level has not been declared by the Board. The declaration and payment of future quarterly dividends remains at the discretion of the Board of Directors and will depend on the Company's financial results, cash flow and cash requirements, future prospects, and other factors deemed relevant by the Board. See cautionary statement at the end of this release.

2023 Production and Cost Outlook by Site

Peñasquito

 

2023E

Production (oz) / (lb)

CAS ($/unit)

AISC ($/unit)

Gold (Koz)

330 - 370

$840 - $940

$1,110 - $1,210

Silver (Moz)

31 - 35

$11.10 - $12.10

$15.50 - $16.50

Lead (Mlb)

170 - 190

$0.55 - $0.65

$0.70 - $0.80

Zinc (Mlb)

420 - 460

$0.65 - $0.75

$1.05 - $1.15

Peñasquito is expected to deliver lower gold production in 2023 as planned due to lower grade, harder ore mined from the Chile Colorado pit and continued stripping of the next phases of the Peñasco and Chile Colorado pits. Due to this planned mine sequence, gold grade in 2023 is expected to decline approximately 25 percent from 2022. Notably, 2023 production is expected to be weighted in the first and third quarters of the year as the operation sequences processing of Chile Colorado ore. In 2024, gold production is expected to improve due to mine phasing leading to the processing of higher grade ore.

Increased co-product production at Peñasquito is expected in 2023 due to higher silver, lead and zinc content delivered from the Chile Colorado pit.

Gold unit costs at Peñasquito are expected to be impacted by lower production volumes in 2023, while co-product unit costs are expected to benefit from higher production volumes.

Boddington

 

2023E

Production (oz) / (lb)

CAS ($/unit)

AISC ($/unit)

Gold (Koz)

740 - 820

$800 - $900

$960 - $1,060

Copper (Mlb)

95 - 105

$1.85 - $2.15

$2.35 - $2.65

Gold production at Boddington is expected to remain relatively consistent in 2023 as compared to 2022. Based on mine sequencing, gold production is expected to decline in 2024 and 2025 due to lower grade ore and stripping in the South pit.

Increased copper production at Boddington is expected in 2023 due to higher grade and mill throughput.

Gold unit costs at Boddington are expected to remain relatively consistent in 2023 with 2022 levels, while copper unit costs are expected to increase slightly due to higher direct costs, with higher all-in sustaining costs due to higher sustaining capital spend.

Ahafo

 

2023E

Production (Koz)

CAS ($/oz)

AISC ($/oz)

Gold

675 - 745

$850 - $950

$1,010 - $1,110

Production at Ahafo is expected to increase in 2023, continuing through 2024, due to higher grade at the Subika open pit and increased underground tonnes mined due to the change in the mining method at Subika Underground. In 2023, gold production is expected to steadily increase each quarter due to the progression of work at Subika Underground, resulting in production that is expected to be approximately 60 percent weighted to the second half of the year.

Unit costs at Ahafo are expected to improve in 2023 due to higher production volumes.

Ahafo North will add profitable production beginning in 2025, with the first full year of production expected in 2026, improving margins through low-cost production.

Tanami

 

2023E

Production (Koz)

CAS ($/oz)

AISC ($/oz)

Gold

420 - 460

$770 - $870

$1,130 - $1,230

Tanami production is expected to decrease slightly beginning in 2023 and continuing through 2024 due to lower ore grade from planned mine sequencing to allow for expansion construction underground, with higher production beginning in 2025 from the ramp-up of Tanami Expansion 2.

Notably, in the first quarter of 2023, record rainfall and associated flooding resulted in the closure of the main access route for supplies. As a result, milling operations were ceased for a few weeks in the first quarter. Incorporating the impact of this delay, production at Tanami is expected to be significantly weighted to the second half of the year.

Unit costs at Tanami are expected to be impacted by lower production volumes in 2023 and are expected to benefit from improved underground efficiencies as the second expansion comes online in 2025.

Cerro Negro

 

2023E

Production (Koz)

CAS ($/oz)

AISC ($/oz)

Gold

315 - 345

$850 - $950

$1,060 - $1,160

Cerro Negro production is expected to steadily increase compared to 2022 and continuing longer-term due to higher throughput and grade from productivity improvements, as well as added production from San Marcos in the Marianas district expansion in late 2023. These improvements are expected to steadily increase each quarter in 2023, resulting in production weighted approximately 55 percent to the second half of the year. The first expansion at Cerro Negro includes the development of the Marianas and Eastern districts, adding production beginning in 2023.

Cerro Negro unit costs are expected to steadily improve beginning in 2023 due to higher production volumes.

Akyem

 

2023E

Production (Koz)

CAS ($/oz)

AISC ($/oz)

Gold

315 - 345

$850 - $950

$1,110 - $1,210

Akyem production is expected to decrease in 2023 as stripping begins for a new layback to extend mine life, with stripping expected to peak in 2024.

Akyem unit costs are expected to be impacted by lower production volumes due to mine sequencing in 2023.

Porcupine

 

2023E

Production (Koz)

CAS ($/oz)

AISC ($/oz)

Gold

285 - 315

$950 - $1,050

$1,250 - $1,350

Porcupine is expected to benefit from productivity improvements and slightly higher grades in 2023, as additional opportunities continue to be identified to extend production from current operations. The Pamour project is expected to maintain steady production at Porcupine beyond 2024, with an investment decision expected in late 2023.

Porcupine unit costs are expected to be impacted slightly by unfavorable inventory changes in 2023, with higher all-in sustaining costs due to higher sustaining capital spend.

Éléonore

 

2023E

Production (Koz)

CAS ($/oz)

AISC ($/oz)

Gold

265 - 295

$960 - $1,060

$1,300 - $1,400

Éléonore is expected to deliver higher production in 2023 due to higher underground tonnes and throughput from productivity improvements, with steadily improving production expected longer-term.

Éléonore unit costs are expected to benefit from higher production volumes in 2023.

Yanacocha

 

2023E

Production (Koz)

CAS ($/oz)

AISC ($/oz)

Gold

255 - 285

$1,370 - $1,470

$1,620 - $1,720

Yanacocha continues to deliver leach-only production, with increased production expected in 2023 compared to 2022 due to higher leach recoveries from the use of injection leaching. Production is expected to remain relatively steady from 2023 through 2025, until production volumes begin to decline in 2026.

Costs are expected to be highest at Yanacocha in 2023 across the five-year period due to unfavorable write-downs and inventory changes.

Merian

 

2023E

Production (Koz)

CAS ($/oz)

AISC ($/oz)

Gold

235 - 265

$980 - $1,080

$1,230 - $1,330

Merian is expected to deliver slightly lower production beginning in 2023 and into 2025 due to mine sequencing as the next phase of stripping in the Merian pit begins and the site continues to mine harder, lower grade ore.

Merian unit costs are expected to be impacted by lower production volumes due to mine sequencing.

Musselwhite

 

2023E

Production (Koz)

CAS ($/oz)

AISC ($/oz)

Gold

200 - 220

$860 - $960

$1,290 - $1,390

Musselwhite is expected to deliver steadily improving production in 2023 and longer-term, driven by productivity improvements and accessing higher grade in the PQ Deeps.

Musselwhite unit costs are expected to steadily improve in 2023 with higher production volumes.

CC&V

 

2023E

Production (Koz)

CAS ($/oz)

AISC ($/oz)

Gold

160 - 180

$1,150 - $1,250

$1,580 - $1,680

CC&V is expected to deliver slightly lower production through 2024 due to stripping of a resource layback, resulting in lower ounces recovered from leach-only operations.

In 2023, CC&V unit costs are expected to remain largely in line with 2022.

Nevada Gold Mines (NGM)

 

2023E

Production (Koz)

CAS ($/oz)

AISC ($/oz)

Gold

1,190 - 1,310

$850 - $950

$1,150 - $1,250

Production, CAS and AISC for the Company’s 38.5 percent ownership interest in NGM as provided by Barrick Gold Corporation.

Pueblo Viejo

 

2023E

Production (Koz)

Gold

315 - 345

Attributable production reflects Newmont’s 40% interest in Pueblo Viejo, which is accounted for as an equity method investment.

2023 Site Outlooka

 

2023 Outlook

Consolidated

Production (Koz)

Attributable

Production (Koz)

Consolidated CAS

($/oz)

Consolidated

All-In Sustaining

Costs b ($/oz)

Attributable

Sustaining Capital

Expenditures ($M)

Attributable

Development

Capital

Expenditures ($M)

 

 

 

 

 

 

 

CC&V

160 - 180

160 - 180

1,150 - 1,250

1,580 - 1,680

25 - 35

Éléonore

265 - 295

265 - 295

960 - 1,060

1,300 - 1.400

55 - 65

Peñasquito

330 - 370

330 - 370

840 - 940

1,110 - 1,210

135 - 145

Porcupine

285 - 315

285 - 315

950 - 1,050

1,250 - 1,350

45 - 55

100 - 120

Musselwhite

200 - 220

200 - 220

860 - 960

1,290 - 1,390

65 - 75

Cerro Negro

315 - 345

315 - 345

850 - 950

1,060 - 1,160

45 - 55

110 - 130

Yanacocha

255 - 285

255 - 285

1,370 - 1,470

1,620 - 1,720

25 - 35

320 - 360

Merianc

315 - 345

235 - 265

980 - 1,080

1,230 - 1,330

35 - 45

Boddington

740 - 820

740 - 820

800 - 900

960 - 1,060

95 - 105

Tanami

420 - 460

420 - 460

770 - 870

1,130 - 1,230

115 - 125

340 - 380

Ahafo

675 - 745

675 - 745

850 - 950

1,010 - 1,110

75 - 85

5 - 15

Akyem

315 - 345

315 - 345

850 - 950

1,110 - 1,210

25 - 35

Ahafo North

245 - 275

 

 

 

 

 

 

 

Nevada Gold Minesd

1,190 - 1,310

1,190 - 1,310

850 - 950

1,150 - 1,250

250 - 350

50 - 150

Pueblo Viejoe

315 - 345

 

 

 

 

 

 

 

Peñasquito - Silver (Moz)

31 - 35

31 - 35

11.10 - 12.10

15.50 - 16.50

 

 

Peñasquito - Lead (Mlbs)

170 - 190

170 - 190

0.55 - 0.65

0.70 - 0.80

 

 

Peñasquito - Zinc (Mlbs)

420 - 460

420 - 460

0.65 - 0.75

1.05 - 1.15

 

 

Boddington - Copper (Mlbs)

95 - 105

95 - 105

1.85 - 2.15

2.35 - 2.65

 

 

a 2023 outlook projections are considered forward-looking statements and represent management’s good faith estimates or expectations of future production results as of February 23, 2023. Outlook is based upon certain assumptions, including, but not limited to, metal prices, oil prices, certain exchange rates and other assumptions. For example, 2023 Outlook assumes $1,700/oz Au, $3.50/lb Cu, $20.00/oz Ag, $1.35/lb Zn, $0.90/lb Pb, $0.70 USD/AUD exchange rate, $0.77 USD/CAD exchange rate and $90/barrel WTI. Production, CAS, AISC and capital estimates exclude projects that have not yet been approved, except for Yanacocha Sulfides, Pamour and Cerro Negro District Expansion 1 which are included in Outlook. The potential impact on inventory valuation as a result of lower prices, input costs, and project decisions are not included as part of this Outlook. Assumptions used for purposes of Outlook may prove to be incorrect and actual results may differ from those anticipated, including variation beyond a +/-5% range. Outlook cannot be guaranteed. As such, investors are cautioned not to place undue reliance upon Outlook and forward-looking statements as there can be no assurance that the plans, assumptions or expectations upon which they are placed will occur. Amounts may not recalculate to totals due to rounding. See cautionary at the end of this release.

b All-in sustaining costs (AISC) as used in the Company’s Outlook is a non-GAAP metric; see below for further information and reconciliation to consolidated 2023 CAS outlook.

c Consolidated production for Merian is presented on a total production basis for the mine site; attributable production represents a 75% interest for Merian.

d Represents the ownership interest in the Nevada Gold Mines (NGM) joint venture. NGM is owned 38.5% by Newmont and owned 61.5% and operated by Barrick. The Company accounts for its interest in NGM using the proportionate consolidation method, thereby recognizing its pro-rata share of the assets, liabilities and operations of NGM.

e Attributable production includes Newmont’s 40% interest in Pueblo Viejo, which is accounted for as an equity method investment.

Three Months Ended December 31,

 

Year Ended December 31,

Operating Results

2022

2021

% Change

 

2022

2021

% Change

Attributable Sales (koz)

 

 

 

 

 

 

 

Attributable gold ounces sold (1)

 

1,581

 

1,559

1

%

 

 

5,696

 

5,660

1

%

Attributable gold equivalent ounces sold

 

311

 

328

(5

)%

 

 

1,275

 

1,258

1

%

 

 

 

 

 

 

 

 

Average Realized Price ($/oz, $/lb)

 

 

 

 

 

 

 

Average realized gold price

$

1,758

$

1,798

(2

)%

 

$

1,792

$

1,788

%

Average realized copper price

$

4.12

$

4.54

(9

)%

 

$

3.69

$

4.29

(14

)%

Average realized silver price

$

20.42

$

19.82

3

%

 

$

18.45

$

20.19

(9

)%

Average realized lead price

$

0.87

$

1.11

(22

)%

 

$

0.91

$

1.00

(9

)%

Average realized zinc price

$

1.12

$

1.54

(27

) %

 

$

1.34

$

1.30

3

%

 

 

 

 

 

 

 

 

Attributable Production (koz)

 

 

 

 

 

 

 

North America

 

387

 

404

(4

)%

 

 

1,416

 

1,598

(11

)%

South America

 

217

 

182

19

%

 

 

810

 

733

11

%

Australia

 

338

 

339

%

 

 

1,282

 

1,181

9

%

Africa

 

299

 

245

22

%

 

 

994

 

862

15

%

Nevada

 

324

 

377

(14

)%

 

 

1,169

 

1,272

(8

)%

Total Gold (excluding equity method investments)

 

1,565

 

1,547

1

%

 

 

5,671

 

5,646

%

Pueblo Viejo (40%) (2)

 

65

 

71

(8

)%

 

 

285

 

325

(12

)%

Total Gold

 

1,630

 

1,618

1

%

 

 

5,956

 

5,971

%

 

 

 

 

 

 

 

 

North America

 

229

 

269

(15

)%

 

 

1,048

 

1,089

(4

)%

Australia

 

67

 

48

40

%

 

 

227

 

163

39

%

Total Gold Equivalent Ounces

 

296

 

317

(7

)%

 

 

1,275

 

1,252

2

%

 

 

 

 

 

 

 

 

CAS Consolidated ($/oz, $/GEO)

 

 

 

 

 

 

 

North America

$

921

$

883

4

%

 

$

999

$

796

26

%

South America

$

1,098

$

860

28

%

 

$

1,034

$

832

24

%

Australia

$

797

$

724

10

%

 

$

755

$

755

%

Africa

$

994

$

786

26

%

 

$

911

$

799

14

%

Nevada

$

934

$

753

24

%

 

$

989

$

755

31

%

Total Gold

$

940

$

802

17

%

 

$

933

$

785

19

%

Total Gold (by-product)

$

876

$

657

33

%

 

$

855

$

637

34

%

 

 

 

 

 

 

 

 

North America

$

866

$

717

21

%

 

$

828

$

603

37

%

Australia

$

823

$

874

(6

) %

 

$

782

$

902

(13

)%

Total Gold Equivalent Ounces

$

857

$

739

16

%

 

$

819

$

640

28

%

 

 

 

 

 

 

 

 

AISC Consolidated ($/oz, $/GEO)

 

 

 

 

 

 

 

North America

$

1,213

$

1,100

10

%

 

$

1,287

$

1,016

27

%

South America

$

1,318

$

1,158

14

%

 

$

1,262

$

1,130

12

%

Australia

$

986

$

904

9

%

 

$

950

$

1,002

(5

)%

Africa

$

1,203

$

1,020

18

%

 

$

1,108

$

1,022

8

%

Nevada

$

1,186

$

887

34

%

 

$

1,220

$

918

33

%

Total Gold

$

1,215

$

1,056

15

%

 

$

1,211

$

1,062

14

%

Total Gold (by-product)

$

1,211

$

965

25

%

 

$

1,198

$

969

24

%

 

 

 

 

 

 

 

 

North America

$

1,181

$

955

24

%

 

$

1,115

$

824

35

%

Australia

$

954

$

1,009

(5

)%

 

$

909

$

1,098

(17

)%

Total Gold Equivalent Ounces

$

1,166

$

1,007

16

%

 

$

1,114

$

900

24

%

(1)

Attributable gold ounces from the Pueblo Viejo mine, an equity method investment, are not included in attributable gold ounces sold.

(2)

Represents attributable gold from Pueblo Viejo and does not include the Company's other equity method investments. Attributable gold ounces produced at Pueblo Viejo are not included in attributable gold ounces sold, as noted in footnote (1). Income and expenses of equity method investments are included in Equity income (loss) of affiliates.

NEWMONT CORPORATION

CONSOLIDATED STATEMENTS OF OPERATIONS

 

 

Three Months Ended

December 31,

 

Year Ended

December 31,

 

2022

 

2021

 

2022

 

2021

 

(in millions, except per share)

Sales

$

3,200

 

 

$

3,390

 

 

$

11,915

 

 

$

12,222

 

 

 

 

 

 

 

 

 

Costs and expenses

 

 

 

 

 

 

 

Costs applicable to sales (1)

 

1,780

 

 

 

1,540

 

 

 

6,468

 

 

 

5,435

 

Depreciation and amortization

 

571

 

 

 

639

 

 

 

2,185

 

 

 

2,323

 

Reclamation and remediation

 

758

 

 

 

1,626

 

 

 

921

 

 

 

1,846

 

Exploration

 

62

 

 

 

62

 

 

 

231

 

 

 

209

 

Advanced projects, research and development

 

60

 

 

 

46

 

 

 

229

 

 

 

154

 

General and administrative

 

66

 

 

 

69

 

 

 

276

 

 

 

259

 

Impairment charges

 

1,317

 

 

 

7

 

 

 

1,320

 

 

 

25

 

Loss on assets held for sale

 

 

 

 

 

 

 

 

 

 

571

 

Other expense, net

 

17

 

 

 

27

 

 

 

82

 

 

 

143

 

 

 

4,631

 

 

 

4,016

 

 

 

11,712

 

 

 

10,965

 

Other income (expense):

 

 

 

 

 

 

 

Gain on asset and investment sales, net

 

61

 

 

 

166

 

 

 

35

 

 

 

212

 

Other income (loss), net

 

40

 

 

 

19

 

 

 

(62

)

 

 

(87

)

Interest expense, net of capitalized interest of $21, $11, $69, and $38, respectively

 

(53

)

 

 

(66

)

 

 

(227

)

 

 

(274

)

 

 

48

 

 

 

119

 

 

 

(254

)

 

 

(149

)

Income (loss) before income and mining tax and other items

 

(1,383

)

 

 

(507

)

 

 

(51

)

 

 

1,108

 

Income and mining tax benefit (expense)

 

(112

)

 

 

(300

)

 

 

(455

)

 

 

(1,098

)

Equity income (loss) of affiliates

 

26

 

 

 

28

 

 

 

107

 

 

 

166

 

Net income (loss) from continuing operations

 

(1,469

)

 

 

(779

)

 

 

(399

)

 

 

176

 

Net income (loss) from discontinued operations

 

11

 

 

 

15

 

 

 

30

 

 

 

57

 

Net income (loss)

 

(1,458

)

 

 

(764

)

 

 

(369

)

 

 

233

 

Net loss (income) attributable to noncontrolling interests

 

(19

)

 

 

718

 

 

 

(60

)

 

 

933

 

Net income (loss) attributable to Newmont stockholders

$

(1,477

)

 

$

(46

)

 

$

(429

)

 

$

1,166

 

 

 

 

 

 

 

 

 

Net income (loss) attributable to Newmont stockholders:

 

 

 

 

 

 

 

Continuing operations

$

(1,488

)

 

$

(61

)

 

$

(459

)

 

$

1,109

 

Discontinued operations

 

11

 

 

 

15

 

 

 

30

 

 

 

57

 

 

$

(1,477

)

 

$

(46

)

 

$

(429

)

 

$

1,166

 

 

 

 

 

 

 

 

 

Weighted average common shares (millions):

 

 

 

 

 

 

 

Basic

 

794

 

 

 

795

 

 

 

794

 

 

 

799

 

Effect of employee stock-based awards

 

1

 

 

 

2

 

 

 

1

 

 

 

2

 

Diluted

 

795

 

 

 

797

 

 

 

795

 

 

 

801

 

 

 

 

 

 

 

 

 

Net income (loss) per common share

 

 

 

 

 

 

 

Basic:

 

 

 

 

 

 

 

Continuing operations

$

(1.87

)

 

$

(0.08

)

 

$

(0.58

)

 

$

1.39

 

Discontinued operations

 

0.01

 

 

 

0.02

 

 

 

0.04

 

 

 

0.07

 

 

$

(1.86

)

 

$

(0.06

)

 

$

(0.54

)

 

$

1.46

 

Diluted: (2)

 

 

 

 

 

 

 

Continuing operations

$

(1.87

)

 

$

(0.08

)

 

$

(0.58

)

 

$

1.39

 

Discontinued operations

 

0.01

 

 

 

0.02

 

 

 

0.04

 

 

 

0.07

 

 

$

(1.86

)

 

$

(0.06

)

 

$

(0.54

)

 

$

1.46

 

(1)

Excludes Depreciation and amortization and Reclamation and remediation.

(2)

For the quarters ended December 31, 2022 and 2021 and the year ended December 31, 2022, potentially dilutive shares were excluded in the computation of diluted loss per common share attributable to Newmont stockholders as they were antidilutive.

NEWMONT CORPORATION

CONSOLIDATED BALANCE SHEETS

 

 

At December 31,

2022

 

At December 31,

2021

 

(in millions)

ASSETS

 

 

 

Cash and cash equivalents

$

2,877

 

 

$

4,992

 

Time deposits and other investments

 

880

 

 

 

82

 

Trade receivables

 

366

 

 

 

337

 

Inventories

 

979

 

 

 

930

 

Stockpiles and ore on leach pads

 

774

 

 

 

857

 

Other current assets

 

639

 

 

 

498

 

Current assets

 

6,515

 

 

 

7,696

 

Property, plant and mine development, net

 

24,073

 

 

 

24,124

 

Investments

 

3,278

 

 

 

3,243

 

Stockpiles and ore on leach pads

 

1,716

 

 

 

1,775

 

Deferred income tax assets

 

173

 

 

 

269

 

Goodwill

 

1,971

 

 

 

2,771

 

Other non-current assets

 

756

 

 

 

686

 

Total assets

$

38,482

 

 

$

40,564

 

 

 

 

 

LIABILITIES

 

 

 

Accounts payable

$

633

 

 

$

518

 

Employee-related benefits

 

399

 

 

 

386

 

Income and mining taxes

 

199

 

 

 

384

 

Current lease and other financing obligations

 

96

 

 

 

106

 

Debt

 

 

 

 

87

 

Other current liabilities

 

1,599

 

 

 

1,173

 

Current liabilities

 

2,926

 

 

 

2,654

 

Debt

 

5,571

 

 

 

5,565

 

Lease and other financing obligations

 

465

 

 

 

544

 

Reclamation and remediation liabilities

 

6,578

 

 

 

5,839

 

Deferred income tax liabilities

 

1,809

 

 

 

2,144

 

Employee-related benefits

 

342

 

 

 

439

 

Silver streaming agreement

 

828

 

 

 

910

 

Other non-current liabilities

 

430

 

 

 

608

 

Total liabilities

 

18,949

 

 

 

18,703

 

 

 

 

 

Contingently redeemable noncontrolling interest

 

 

 

 

48

 

Commitments and contingencies(1)

 

 

 

 

 

 

 

EQUITY

 

 

 

Common stock - $1.60 par value;

 

1,279

 

 

 

1,276

 

Authorized - 1,280 million and 1,280 million shares, respectively

 

 

 

Outstanding shares - 793 million and 792 million shares, respectively

 

 

 

Treasury stock - 6 million and 5 million shares, respectively

 

(239

)

 

 

(200

)

Additional paid-in capital

 

17,369

 

 

 

17,981

 

Accumulated other comprehensive income (loss)

 

29

 

 

 

(133

)

Retained earnings

 

916

 

 

 

3,098

 

Newmont stockholders' equity

 

19,354

 

 

 

22,022

 

Noncontrolling interests

 

179

 

 

 

(209

)

Total equity

 

19,533

 

 

 

21,813

 

Total liabilities and equity

$

38,482

 

 

$

40,564

 

(1)

Refer to Note 25 of the Consolidated Financial Statements for additional information.

NEWMONT CORPORATION

CONSOLIDATED STATEMENTS OF CASH FLOWS

 

 

Three Months Ended

December 31,

 

Year Ended

December 31,

 

2022

 

2021

 

2022

 

2021

 

(in millions)

Operating activities:

 

 

 

 

 

 

 

Net income (loss)

$

(1,458

)

 

$

(764

)

 

$

(369

)

 

$

233

 

Adjustments:

 

 

 

 

 

 

 

Depreciation and amortization

 

571

 

 

 

639

 

 

 

2,185

 

 

 

2,323

 

Impairment charges

 

1,317

 

 

 

7

 

 

 

1,320

 

 

 

25

 

Loss on assets held for sale

 

 

 

 

 

 

 

 

 

 

571

 

Gain on asset and investment sales, net

 

(61

)

 

 

(166

)

 

 

(35

)

 

 

(212

)

Net loss (income) from discontinued operations

 

(11

)

 

 

(15

)

 

 

(30

)

 

 

(57

)

Reclamation and remediation

 

743

 

 

 

1,619

 

 

 

892

 

 

 

1,827

 

Charges from pension settlement

 

7

 

 

 

4

 

 

 

137

 

 

 

4

 

Stock-based compensation

 

16

 

 

 

17

 

 

 

73

 

 

 

72

 

Deferred income taxes

 

(133

)

 

 

(99

)

 

 

(278

)

 

 

(109

)

Change in fair value of investments

 

(45

)

 

 

(45

)

 

 

46

 

 

 

135

 

Other non-cash adjustments

 

93

 

 

 

65

 

 

 

98

 

 

 

(5

)

Net change in operating assets and liabilities

 

(29

)

 

 

37

 

 

 

(841

)

 

 

(541

)

Net cash provided by (used in) operating activities of continuing operations

 

1,010

 

 

 

1,299

 

 

 

3,198

 

 

 

4,266

 

Net cash provided by (used in) operating activities of discontinued operations

 

 

 

 

 

 

 

22

 

 

 

13

 

Net cash provided by (used in) operating activities

 

1,010

 

 

 

1,299

 

 

 

3,220

 

 

 

4,279

 

 

 

 

 

 

 

 

 

Investing activities:

 

 

 

 

 

Additions to property, plant and mine development

 

(646

)

 

 

(441

)

 

 

(2,131

)

 

 

(1,653

)

Purchases of investments

 

(275

)

 

 

(41

)

 

 

(940

)

 

 

(59

)

Contributions to equity method investees

 

(42

)

 

 

(36

)

 

 

(194

)

 

 

(150

)

Proceeds from sales of investments

 

127

 

 

 

87

 

 

 

171

 

 

 

194

 

Maturities of investments

 

93

 

 

 

 

 

 

93

 

 

 

 

Return of investment from equity method investees

 

10

 

 

 

 

 

 

62

 

 

 

18

 

Acquisitions, net (1)

 

 

 

 

 

 

 

(15

)

 

 

(328

)

Proceeds from sales of mining operations and other assets, net

 

3

 

 

 

80

 

 

 

16

 

 

 

84

 

Other

 

4

 

 

 

 

 

 

(45

)

 

 

26

 

Net cash provided by (used in) investing activities of continuing operations

 

(726

)

 

 

(351

)

 

 

(2,983

)

 

 

(1,868

)

Net cash provided by (used in) investing activities of discontinued operations

 

 

 

 

 

 

 

 

 

 

 

Net cash provided by (used in) investing activities

 

(726

)

 

 

(351

)

 

 

(2,983

)

 

 

(1,868

)

 

 

 

 

 

 

 

 

Financing activities:

 

 

 

 

 

Dividends paid to common stockholders

 

(436

)

 

 

(436

)

 

 

(1,746

)

 

 

(1,757

)

Acquisition of noncontrolling interests

 

 

 

 

 

 

 

(348

)

 

 

 

Distributions to noncontrolling interests

 

(51

)

 

 

(45

)

 

 

(191

)

 

 

(200

)

Funding from noncontrolling interests

 

28

 

 

 

27

 

 

 

117

 

 

 

100

 

Repayment of debt

 

 

 

 

(832

)

 

 

(89

)

 

 

(1,382

)

Payments on lease and other financing obligations

 

(16

)

 

 

(19

)

 

 

(66

)

 

 

(73

)

Payments for withholding of employee taxes related to stock-based compensation

 

(1

)

 

 

(1

)

 

 

(39

)

 

 

(32

)

Proceeds from issuance of debt, net

 

 

 

 

992

 

 

 

 

 

 

992

 

Repurchases of common stock

 

 

 

 

(277

)

 

 

 

 

 

(525

)

Other

 

(3

)

 

 

(4

)

 

 

6

 

 

 

(81

)

Net cash provided by (used in) financing activities

 

(479

)

 

 

(595

)

 

 

(2,356

)

 

 

(2,958

)

Effect of exchange rate changes on cash, cash equivalents and restricted cash

 

(1

)

 

 

(5

)

 

 

(30

)

 

 

(8

)

Net change in cash, cash equivalents and restricted cash

 

(196

)

 

 

348

 

 

 

(2,149

)

 

 

(555

)

Cash, cash equivalents and restricted cash at beginning of period

 

3,140

 

 

 

4,745

 

 

 

5,093

 

 

 

5,648

 

Cash, cash equivalents and restricted cash at end of period

$

2,944

 

 

$

5,093

 

 

$

2,944

 

 

$

5,093

 

(1)

Acquisitions, net for the year ended December 31, 2021 is primarily related to the asset acquisition of the remaining 85.1% of GT Gold Corporation (“GT Gold”). Refer to Note 1 of the Consolidated Financial Statements for additional information.

 

Three Months Ended

December 31,

 

Year Ended

December 31,

 

2022

 

2021

 

2022

 

2021

 

(in millions)

Reconciliation of cash, cash equivalents and restricted cash:

 

 

 

 

 

Cash and cash equivalents

$

2,877

 

$

4,992

 

$

2,877

 

$

4,992

Restricted cash included in Other current assets

 

1

 

 

2

 

 

1

 

 

2

Restricted cash included in Other non-current assets

 

66

 

 

99

 

 

66

 

 

99

Total cash, cash equivalents and restricted cash

$

2,944

 

$

5,093

 

$

2,944

 

$

5,093

Non-GAAP Financial Measures

Non-GAAP financial measures are intended to provide additional information only and do not have any standard meaning prescribed by GAAP. These measures should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP. Unless otherwise noted, we present the Non-GAAP financial measures of our continuing operations in the tables below. For additional information regarding our discontinued operations, refer to Note 1 to the Consolidated Financial Statements.

Adjusted net income (loss)

Management uses Adjusted Net Income (Loss) to evaluate the Company’s operating performance and for planning and forecasting future business operations. The Company believes the use of Adjusted Net Income (Loss) allows investors and analysts to understand the results of the continuing operations of the Company and its direct and indirect subsidiaries relating to the sale of products, by excluding certain items that have a disproportionate impact on our results for a particular period. Adjustments to continuing operations are presented before tax and net of our partners’ noncontrolling interests, when applicable. The tax effect of adjustments is presented in the Tax effect of adjustments line and is calculated using the applicable regional tax rate. Management’s determination of the components of Adjusted Net Income (Loss) are evaluated periodically and based, in part, on a review of non-GAAP financial measures used by mining industry analysts. Net income (loss) attributable to Newmont stockholders is reconciled to Adjusted net income (loss) as follows:

 

Three Months Ended

December 31, 2022

 

Year Ended

December 31, 2022

 

 

 

per share data (1)

 

 

 

per share data (1)

 

 

 

basic

 

diluted

 

 

 

basic

 

diluted

Net income (loss) attributable to Newmont stockholders

$

(1,477

)

 

$

(1.86

)

 

$

(1.86

)

 

$

(429

)

 

$

(0.54

)

 

$

(0.54

)

Net loss (income) attributable to Newmont stockholders from discontinued operations (2)

 

(11

)

 

 

(0.01

)

 

 

(0.01

)

 

 

(30

)

 

 

(0.04

)

 

 

(0.04

)

Net income (loss) attributable to Newmont stockholders from continuing operations (3)

 

(1,488

)

 

 

(1.87

)

 

 

(1.87

)

 

 

(459

)

 

 

(0.58

)

 

 

(0.58

)

Impairment charges (4)

 

1,317

 

 

 

1.66

 

 

 

1.66

 

 

 

1,320

 

 

 

1.66

 

 

 

1.66

 

Reclamation and remediation charges (5)

 

700

 

 

 

0.88

 

 

 

0.88

 

 

 

713

 

 

 

0.90

 

 

 

0.90

 

Pension settlements (6)

 

7

 

 

 

0.01

 

 

 

0.01

 

 

 

137

 

 

 

0.17

 

 

 

0.17

 

Change in fair value of investments (7)

 

(45

)

 

 

(0.06

)

 

 

(0.06

)

 

 

46

 

 

 

0.06

 

 

 

0.06

 

Gain on asset and investment sales (8)

 

(61

)

 

 

(0.08

)

 

 

(0.08

)

 

 

(35

)

 

 

(0.04

)

 

 

(0.04

)

Settlement costs (9)

 

2

 

 

 

 

 

 

 

 

 

22

 

 

 

0.03

 

 

 

0.03

 

Restructuring and severance (10)

 

1

 

 

 

 

 

 

 

 

 

4

 

 

 

0.01

 

 

 

0.01

 

COVID-19 specific costs (11)

 

2

 

 

 

 

 

 

 

 

 

3

 

 

 

 

 

 

 

Other (12)

 

(3

)

 

 

 

 

 

 

 

 

(21

)

 

 

(0.03

)

 

 

(0.03

)

Tax effect of adjustments (13)

 

(283

)

 

 

(0.35

)

 

 

(0.35

)

 

 

(344

)

 

 

(0.44

)

 

 

(0.44

)

Valuation allowance and other tax adjustments, net (14)

 

199

 

 

 

0.25

 

 

 

0.25

 

 

 

82

 

 

 

0.11

 

 

 

0.11

 

Adjusted net income (loss)

$

348

 

 

$

0.44

 

 

$

0.44

 

 

$

1,468

 

 

$

1.85

 

 

$

1.85

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares (millions): (3)

 

 

 

794

 

 

 

795

 

 

 

 

 

794

 

 

 

795

 

(1)

Per share measures may not recalculate due to rounding.

(2)

For additional information regarding our discontinued operations, see Note 1 to our Consolidated Financial Statements.

(3)

Adjusted net income (loss) per diluted share is calculated using diluted common shares, which are calculated in accordance with U.S. GAAP. For the year ended December 31, 2022, potentially dilutive shares of 1 million were excluded from the computation of diluted loss per common share attributable to Newmont stockholders in the Consolidated Statement of Operations as they were antidilutive. These shares were included in the computation of adjusted net income per diluted share for the year ended December 31, 2022.

(4)

Impairment charges, included in Impairment charges represents non-cash write-downs of long-lived assets and goodwill.

(5)

Reclamation and remediation charges, net, included in Reclamation and remediation, represent revisions to the reclamation and remediation plans and cost estimates at the Company’s former operating properties and historic mining operations that have entered the closure phase and have no substantive future economic value.

(6)

Pension settlements, included in Other income (loss), net, represents pension settlement charges related to the annuitization of certain defined benefit plans.

(7)

Change in fair value of investments, included in Other income (loss), net, primarily represents unrealized gains and losses related to the Company's investment in current and non-current marketable and other equity securities.

(8)

Gain on asset and investment sales, included in Gain on asset and investment sales, net, primarily represents gains recognized on the sale of the investment in MARA, the disposal of trucks at Boddington and the sale of a royalty at NGM, partially offset by the loss recognized on the sale of the La Zanja equity method investment for the year ended 2022.

(9)

Settlement costs, included in Other expense, net, primarily represents a legal settlement and a voluntary contribution made to support humanitarian efforts in Ukraine.

(10)

Restructuring and severance, net, included in Other expense, net, primarily represents severance and related costs associated with significant organizational or operating model changes implemented by the Company.

(11)

COVID-19 specific costs, included in Other expense, net, represents amounts distributed from the Newmont Global Community Fund to help host communities, governments and employees combat the COVID-19 pandemic. Adjusted net income (loss) has not been adjusted for $2 and $35, respectively, of incremental COVID-19 costs incurred as a result of actions taken to protect against the impacts of the COVID-19 pandemic at our operational sites.

(12)

Primarily represents for the year ended, an $11 reimbursement of certain historical Goldcorp operational expenses related to a legacy project that reached commercial production in the second quarter of 2022 and $7 of penalty income from an energy vendor early terminating a contract in 2022, included Other income (loss), net.

(13)

The tax effect of adjustments, included in Income and mining tax benefit (expense), represents the tax effect of adjustments in footnotes (4) through (12), as described above, and are calculated using the applicable regional tax rate.

(14)

Valuation allowance and other tax adjustments, net, included in Income and mining tax benefit (expense), is recorded for items such as foreign tax credits, alternative minimum tax credits, capital losses, disallowed foreign losses, and the effects of changes in foreign currency exchange rates on deferred tax assets and deferred tax liabilities. The adjustment for the three months and the year ended December 31, 2022, reflects the net increase or (decrease) to net operating losses, capital losses, tax credit carryovers, and other deferred tax assets subject to valuation allowance of $178 and $246, respectively, the expiration of U.S. foreign tax credit carryovers of $31 and $31, respectively, the effects of changes in foreign exchange rates on deferred tax assets and liabilities of $(38) and $(86), respectively, net removal to the reserve for uncertain tax positions of $5 and $(8), respectively, a tax settlement in Mexico of $— and $(125), respectively, and other tax adjustments of $23 and $24, respectively. Total amount is presented net of income (loss) attributable to noncontrolling interests of $199 and $82, respectively.

Three Months Ended

December 31, 2021

 

Year Ended

December 31, 2021

 

 

 

per share data (1)

 

 

 

per share data (1)

 

 

 

basic

 

diluted

 

 

 

basic

 

diluted

Net income (loss) attributable to Newmont stockholders

$

(46

)

 

$

(0.06

)

 

$

(0.06

)

 

$

1,166

 

 

$

1.46

 

 

$

1.46

 

Net loss (income) attributable to Newmont stockholders from discontinued operations (2)

 

(15

)

 

 

(0.02

)

 

 

(0.02

)

 

 

(57

)

 

 

(0.07

)

 

 

(0.07

)

Net income (loss) attributable to Newmont stockholders from continuing operations

 

(61

)

 

 

(0.08

)

 

 

(0.08

)

 

 

1,109

 

 

 

1.39

 

 

 

1.39

 

Reclamation and remediation charges, net (3)

 

874

 

 

 

1.10

 

 

 

1.10

 

 

 

983

 

 

 

1.23

 

 

 

1.23

 

Loss on assets held for sale, net (4)

 

 

 

 

 

 

 

 

 

 

372

 

 

 

0.47

 

 

 

0.46

 

Gain on asset and investment sales (5)

 

(166

)

 

 

(0.21

)

 

 

(0.21

)

 

 

(212

)

 

 

(0.27

)

 

 

(0.27

)

Change in fair value of investments (6)

 

(45

)

 

 

(0.05

)

 

 

(0.05

)

 

 

135

 

 

 

0.17

 

 

 

0.17

 

Impairment charges (7)

 

7

 

 

 

0.01

 

 

 

0.01

 

 

 

25

 

 

 

0.03

 

 

 

0.03

 

Loss on debt extinguishment (8)

 

11

 

 

 

0.01

 

 

 

0.01

 

 

 

11

 

 

 

0.01

 

 

 

0.01

 

Settlement costs (9)

 

 

 

 

 

 

 

 

 

 

11

 

 

 

0.01

 

 

 

0.01

 

Restructuring and severance, net (10)

 

 

 

 

 

 

 

 

 

 

9

 

 

 

0.01

 

 

 

0.01

 

COVID-19 specific costs (11)

 

2

 

 

 

 

 

 

 

 

 

5

 

 

 

 

 

 

 

Pension settlement (12)

 

4

 

 

 

 

 

 

 

 

 

4

 

 

 

 

 

 

 

Impairment of investments (13)

 

 

 

 

 

 

 

 

 

 

1

 

 

 

 

 

 

 

Tax effect of adjustments (14)

 

(216

)

 

 

(0.27

)

 

 

(0.27

)

 

 

(413

)

 

 

(0.51

)

 

 

(0.51

)

Valuation allowance and other tax adjustments, net (15)

 

214

 

 

 

0.27

 

 

 

0.27

 

 

 

331

 

 

 

0.43

 

 

 

0.43

 

Adjusted net income (loss) (16)

$

624

 

 

$

0.78

 

 

$

0.78

 

 

$

2,371

 

 

$

2.97

 

 

$

2.96

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares (millions): (17)

 

 

 

795

 

 

 

797

 

 

 

 

 

799

 

 

 

801

 

(1)

Per share measures may not recalculate due to rounding.

(2)

For additional information regarding our discontinued operations, see Note 1 to our Consolidated Financial Statements.

(3)

Reclamation and remediation charges, net, included in Reclamation and remediation, represent revisions to the reclamation and remediation plans and cost estimates at the Company’s former operating properties and historic mining operations that have entered the closure phase and have no substantive future economic value. Amounts are presented pre-tax net of income (loss) attributable to noncontrolling interests of $(713) and $(713), respectively.

(4)

Loss on assets held for sale, net, included in Loss on assets held for sale, represents the loss recognized due to the reclassification of the Conga mill assets as held for sale during the third quarter of 2021. The assets were remeasured to fair value less costs to sell. Amounts are presented net of income (loss) attributable to noncontrolling interests of $— and $(199), respectively.

(5)

Gain on asset and investment sales, included in Gain on asset and investment sales, net, primarily represents the gain on the sale of the Kalgoorlie Power business, gain on the NGM Lone Tree and South Arturo exchange, and gain on the sale of TMAC.

(6)

Change in fair value of investments, included in Other income (loss), net, primarily represents unrealized gains and losses related to the Company's investment in current and non-current marketable and other equity securities.

(7)

Impairment charges, included in Impairment charges, represents non-cash write-downs of various assets that are no longer in use and materials and supplies inventories.

(8)

Loss on debt extinguishment, included in Other income (loss), net, primarily represents losses on the debt tender offer and subsequent extinguishment of the 2023 Newmont Senior Notes and the 2023 Goldcorp Senior Notes.

(9)

Settlement costs, included in Other expense, net, primarily are comprised of a voluntary contribution made to the Republic of Suriname.

(10)

Restructuring and severance, net, included in Other expense, net, primarily represents severance and related costs associated with significant organizational or operating model changes implemented by the Company. Amounts are presented net of income (loss) attributable to noncontrolling interests of $(1) and $(2), respectively.

(11)

COVID-19 specific costs, included in Other expense, net, represents incremental direct costs incurred as a result of actions taken to protect against the impacts of the COVID-19 pandemic and primarily include amounts distributed from the Newmont Global Community Fund to help host communities, governments and employees combat the COVID-19 pandemic. Adjusted net income (loss) has not been adjusted for $19 and $82 of incremental COVID-19 costs incurred as a result of actions taken to protect against the impacts of the COVID-19 pandemic at our operational sites.

(12)

Pension settlements, included in Other income (loss), net, represents pension settlement charges due to lump sum payments to participants.

(13)

Impairment of investments, included in Other income (loss), net, primarily represents other-than-temporary impairment of other investments.

(14)

The tax effect of adjustments, included in Income and mining tax benefit (expense), represents the tax effect of adjustments in footnotes (3) through (13), as described above, and are calculated using the applicable regional tax rate.

(15)

Valuation allowance and other tax adjustments, net, included in Income and mining tax benefit (expense), is recorded for items such as foreign tax credits, alternative minimum tax credits, capital losses, disallowed foreign losses, and the effects of changes in foreign currency exchange rates on deferred tax assets and deferred tax liabilities. The adjustment is due the net increase or (decrease) to net operating losses, capital losses, tax credit carryovers and other deferred tax assets subject to valuation allowance of $204 and $419, respectively, the expiration of U.S. capital loss carryovers of $152 and $152, respectively, the effects of changes in foreign exchange rates on deferred tax assets and liabilities of $10 and $(17), respectively, net reductions to the reserve for uncertain tax positions of $78 and $99, respectively and other tax adjustments of $23 and $5, respectively. Total amounts are presented net of income (loss) attributable to noncontrolling interests of $(253) and $(327), respectively.

(16)

Adjusted net income (loss) has not been adjusted for $— and $8 of cash and $— and $3 of non-cash care and maintenance costs, included in Other expense, net and Depreciation and amortization, respectively, which primarily represent costs associated with certain sites being temporarily placed into care and maintenance in response to the COVID-19 pandemic during a portion of the three months and year ended December 31, 2021, respectively.

(17)

Adjusted net income (loss) per diluted share is calculated using diluted common shares, which are calculated in accordance with U.S. GAAP.

Earnings before interest, taxes and depreciation and amortization and Adjusted earnings before interest, taxes and depreciation and amortization

Management uses earnings before interest, taxes and depreciation and amortization (“EBITDA”) and EBITDA adjusted for non-core or certain items that have a disproportionate impact on our results for a particular period (“Adjusted EBITDA”) as non-GAAP measures to evaluate the Company’s operating performance. EBITDA and Adjusted EBITDA do not represent, and should not be considered an alternative to, net income (loss), operating income (loss), or cash flow from operations as those terms are defined by GAAP, and do not necessarily indicate whether cash flows will be sufficient to fund cash needs. Although Adjusted EBITDA and similar measures are frequently used as measures of operations and the ability to meet debt service requirements by other companies, our calculation of Adjusted EBITDA is not necessarily comparable to such other similarly titled captions of other companies. The Company believes that Adjusted EBITDA provides useful information to investors and others in understanding and evaluating our operating results in the same manner as our management and Board of Directors. Management’s determination of the components of Adjusted EBITDA are evaluated periodically and based, in part, on a review of non-GAAP financial measures used by mining industry analysts. Net income (loss) attributable to Newmont stockholders is reconciled to EBITDA and Adjusted EBITDA as follows:

Three Months Ended

December 31,

 

Year Ended

December 31,

2022

 

2021

 

2022

 

2021

Net income (loss) attributable to Newmont stockholders

$

(1,477

)

 

$

(46

)

 

$

(429

)

 

$

1,166

 

Net income (loss) attributable to noncontrolling interests

 

19

 

 

 

(718

)

 

 

60

 

 

 

(933

)

Net (income) loss from discontinued operations (1)

 

(11

)

 

 

(15

)

 

 

(30

)

 

 

(57

)

Equity loss (income) of affiliates

 

(26

)

 

 

(28

)

 

 

(107

)

 

 

(166

)

Income and mining tax expense (benefit)

 

112

 

 

 

300

 

 

 

455

 

 

 

1,098

 

Depreciation and amortization

 

571

 

 

 

639

 

 

 

2,185

 

 

 

2,323

 

Interest expense, net

 

53

 

 

 

66

 

 

 

227

 

 

 

274

 

EBITDA

$

(759

)

 

$

198

 

 

$

2,361

 

 

$

3,705

 

Adjustments:

 

 

 

 

 

 

 

Impairment charges (2)

$

1,317

 

 

$

7

 

 

$

1,320

 

 

$

25

 

Reclamation and remediation charges (3)

 

700

 

 

 

1,587

 

 

 

713

 

 

 

1,696

 

Pension settlements (4)

 

7

 

 

 

4

 

 

 

137

 

 

 

4

 

Change in fair value of investments (5)

 

(45

)

 

 

(45

)

 

 

46

 

 

 

135

 

Gain on asset and investment sales (6)

 

(61

)

 

 

(166

)

 

 

(35

)

 

 

(212

)

Settlement costs (7)

 

2

 

 

 

 

 

 

22

 

 

 

11

 

Restructuring and severance (8)

 

1

 

 

 

1

 

 

 

4

 

 

 

11

 

COVID-19 specific costs (9)

 

2

 

 

 

2

 

 

 

3

 

 

 

5

 

Loss on assets held for sale (10)

 

 

 

 

 

 

 

 

 

 

571

 

Loss on debt extinguishment (11)

 

 

 

 

11

 

 

 

 

 

 

11

 

Impairment of investments (12)

 

 

 

 

 

 

 

 

 

 

1

 

Other (13)

 

(3

)

 

 

 

 

 

(21

)

 

 

 

Adjusted EBITDA (14)

$

1,161

 

 

$

1,599

 

 

$

4,550

 

 

$

5,963

 

(1)

For additional information regarding our discontinued operations, refer to Note 1 to our Consolidated Financial Statements.

(2)

Impairment charges, included in Impairment charges represents non-cash write-downs of long-lived assets and goodwill.

(3)

Reclamation and remediation charges, included in Reclamation and remediation, represent revisions to the reclamation and remediation plans and cost estimates at the Company’s former operating properties and historic mining operations that have entered the closure phase and have no substantive future economic value.

(4)

Pension settlements, included in Other income (loss), net, primarily represents pension settlement charges related to the annuitization of certain defined benefit plans and lump sum payments to participants in 2022 and related to lump sum payments to participants in 2021.

(5)

Change in fair value of investments, included in Other income (loss), net, primarily represents unrealized gains and losses related to the Company's investments in current and non-current marketable and other equity securities.

(6)

Gain on asset and investment sales, included in Gain on asset and investment sales, net, primarily represents gains recognized on the sale of the investment in MARA, the disposal of trucks at Boddington and the sale of a royalty at NGM, partially offset by the loss recognized on the sale of the La Zanja equity method investment in 2022; and the gain on the sale of the Kalgoorlie Power business, gain on the NGM Lone Tree and South Arturo exchange transaction, and gain on the sale of TMAC in 2021.

(7)

Settlement costs, included in Other expense, net, primarily represents a legal settlement and a voluntary contribution made to support humanitarian efforts in Ukraine in 2022; and a voluntary contribution made to the Republic of Suriname in 2021.

(8)

Restructuring and severance, included in Other expense, net, primarily represents severance and related costs associated with significant organizational and operating model changes implemented by the Company for all periods presented.

(9)

COVID-19 specific costs, included in Other expense, net, primarily includes amounts distributed from Newmont Global Community Support Fund to help host communities, governments and employees combat the COVID-19 pandemic.

(10)

Loss on assets held for sale, included in Loss on assets held for sale, represents the loss recognized due to the reclassification of the Conga mill assets as held for sale during 2021. The assets were remeasured to fair value less costs to sell.

(11)

Loss on debt extinguishment, included in Other income (loss), net, primarily represents losses on the debt tender offer and subsequent extinguishment of the 2023 Newmont Senior Notes and the 2023 Goldcorp Senior Notes during 2021.

(12)

Impairment of investments, included in Other income (loss), net, represents other-than-temporary impairment of other investments.

(13)

Primarily represents for the year ended, an $11 reimbursement of certain historical Goldcorp operational expenses related to a legacy project that reached commercial production in the second quarter of 2022 and $7 of penalty income from an energy vendor early terminating a contract in 2022, included Other income (loss), net.

(14)

Adjusted EBITDA has not been adjusted for $—, $—, $—, and $8 of cash care and maintenance costs, included in Other expense, net, which primarily represent costs incurred associated with certain mine sites being temporarily placed into care and maintenance in response to the COVID-19 pandemic for the three months and years ended December 31, 2022 and 2021, respectively.

The Company uses NGM EBITDA as a non-GAAP measure to evaluate the operating performance of its investment in Nevada Gold Mines (NGM). NGM EBITDA does not represent, and should not be considered an alternative to, Income (loss) before income and mining tax and other items, as defined by GAAP, and does not necessarily indicate whether cash distributions from NGM will match NGM EBITDA. Although the Company has the ability to exert significant influence and proportionally consolidates its 38.5% interest in NGM, it does not have direct control over the operations or resulting revenues and expenses of its investment in NGM. The Company believes that NGM EBITDA provides useful information to investors and others in understanding and evaluating the operating results of its investment in NGM, in the same manner as management and the Board of Directors. Income (loss) before income and mining tax and other items is reconciled to NGM EBITDA as follows:

 

Three Months Ended

December 31,

 

Year Ended

December 31,

 

2022

 

2021

 

2022

 

2021

Income (Loss) before Income and Mining Tax and other Items, NGM (1)

$

141

 

$

319

 

$

434

 

$

818

Depreciation and amortization, NGM (1)

 

110

 

 

164

 

 

471

 

 

550

NGM EBITDA

$

251

 

$

483

 

$

905

 

$

1,368

(1)

See Note 3 to the Consolidated Financial Statements.

Free Cash Flow

Management uses Free Cash Flow as a non-GAAP measure to analyze cash flows generated from operations. Free Cash Flow is Net cash provided by (used in) operating activities less Net cash provided by (used in) operating activities of discontinued operations less Additions to property, plant and mine development as presented on the Consolidated Statements of Cash Flows. The Company believes Free Cash Flow is also useful as one of the bases for comparing the Company’s performance with its competitors. Although Free Cash Flow and similar measures are frequently used as measures of cash flows generated from operations by other companies, the Company’s calculation of Free Cash Flow is not necessarily comparable to such other similarly titled captions of other companies.

The presentation of non-GAAP Free Cash Flow is not meant to be considered in isolation or as an alternative to net income as an indicator of the Company’s performance, or as an alternative to cash flows from operating activities as a measure of liquidity as those terms are defined by GAAP, and does not necessarily indicate whether cash flows will be sufficient to fund cash needs. The Company’s definition of Free Cash Flow is limited in that it does not represent residual cash flows available for discretionary expenditures due to the fact that the measure does not deduct the payments required for debt service and other contractual obligations or payments made for business acquisitions. Therefore, the Company believes it is important to view Free Cash Flow as a measure that provides supplemental information to the Company’s Consolidated Statements of Cash Flows.

The following table sets forth a reconciliation of Free Cash Flow, a non-GAAP financial measure, to Net cash provided by (used in) operating activities, which the Company believes to be the GAAP financial measure most directly comparable to Free Cash Flow, as well as information regarding Net cash provided by (used in) investing activities and Net cash provided by (used in) financing activities.

 

Three Months Ended

December 31,

 

Year Ended

December 31,

 

2022

 

2021

 

2022

 

2021

Net cash provided by (used in) operating activities

$

1,010

 

 

$

1,299

 

 

$

3,220

 

 

$

4,279

 

Less: Net cash used in (provided by) operating activities of discontinued operations

 

 

 

 

 

 

 

(22

)

 

 

(13

)

Net cash provided by (used in) operating activities of continuing operations

 

1,010

 

 

 

1,299

 

 

 

3,198

 

 

 

4,266

 

Less: Additions to property, plant and mine development

 

(646

)

 

 

(441

)

 

 

(2,131

)

 

 

(1,653

)

Free Cash Flow

$

364

 

 

$

858

 

 

$

1,067

 

 

$

2,613

 

 

 

 

 

 

 

 

 

Net cash provided by (used in) investing activities (1)

$

(726

)

 

$

(351

)

 

$

(2,983

)

 

$

(1,868

)

Net cash provided by (used in) financing activities

$

(479

)

 

$

(595

)

 

$

(2,356

)

 

$

(2,958

)

(1)

Net cash provided by (used in) investing activities includes Additions to property, plant and mine development, which is included in the Company’s computation of Free Cash Flow.​

Attributable Free Cash Flow

Management uses Attributable Free Cash Flow as a non-GAAP measure to analyze cash flows generated from operations that are attributable to the Company. Attributable Free Cash Flow is Net cash provided by (used in) operating activities after deducting net cash flows from operations attributable to noncontrolling interests less Net cash provided by (used in) operating activities of discontinued operations after deducting net cash flows from discontinued operations attributable to noncontrolling interests less Additions to property, plant and mine development after deducting property, plant and mine development attributable to noncontrolling interests. The Company believes that Attributable Free Cash Flow is useful as one of the bases for comparing the Company’s performance with its competitors. Although Attributable Free Cash Flow and similar measures are frequently used as measures of cash flows generated from operations by other companies, the Company’s calculation of Attributable Free Cash Flow is not necessarily comparable to such other similarly titled captions of other companies.

The presentation of non-GAAP Attributable Free Cash Flow is not meant to be considered in isolation or as an alternative to Net income attributable to Newmont stockholders as an indicator of the Company’s performance, or as an alternative to Net cash provided by (used in) operating activities as a measure of liquidity as those terms are defined by GAAP, and does not necessarily indicate whether cash flows will be sufficient to fund cash needs. The Company’s definition of Attributable Free Cash Flow is limited in that it does not represent residual cash flows available for discretionary expenditures due to the fact that the measure does not deduct the payments required for debt service and other contractual obligations or payments made for business acquisitions. Therefore, the Company believes it is important to view Attributable Free Cash Flow as a measure that provides supplemental information to the Company’s Condensed Consolidated Statements of Cash Flows.

The following tables set forth a reconciliation of Attributable Free Cash Flow, a non-GAAP financial measure, to Net cash provided by (used in) operating activities, which the Company believes to be the GAAP financial measure most directly comparable to Attributable Free Cash Flow, as well as information regarding Net cash provided by (used in) investing activities and Net cash provided by (used in) financing activities.

 

Three Months Ended December 31, 2022

 

Year Ended December 31, 2022

 

Consolidated

 

Attributable

to

noncontrolling

interests (1)

 

Attributable to

Newmont

Stockholders

 

Consolidated

 

Attributable

to

noncontrolling

interests (1)

 

Attributable to

Newmont

Stockholders

Net cash provided by (used in) operating activities

$

1,010

 

 

$

(19

)

 

$

991

 

 

$

3,220

 

 

$

(83

)

 

$

3,137

 

Less: Net cash used in (provided by) operating activities of discontinued operations

 

 

 

 

 

 

 

 

 

 

(22

)

 

 

 

 

 

(22

)

Net cash provided by (used in) operating activities of continuing operations

 

1,010

 

 

 

(19

)

 

 

991

 

 

 

3,198

 

 

 

(83

)

 

 

3,115

 

Less: Additions to property, plant and mine development (2)

 

(646

)

 

 

4

 

 

 

(642

)

 

 

(2,131

)

 

 

29

 

 

 

(2,102

)

Free Cash Flow

$

364

 

 

$

(15

)

 

$

349

 

 

$

1,067

 

 

$

(54

)

 

$

1,013

 

 

 

 

 

 

 

 

 

 

 

 

 

Net cash provided by (used in) investing activities (3)

$

(726

)

 

 

 

 

 

$

(2,983

)

 

 

 

 

Net cash provided by (used in) financing activities

$

(479

)

 

 

 

 

 

$

(2,356

)

 

 

 

 

(1)

Adjustment to eliminate a portion of Net cash provided by (used in) operating activities, Net cash provided by (used in) operating activities of discontinued operations and Additions to property, plant and mine development attributable to noncontrolling interests, which primarily relates to Merian (25%) for the three months and year ended December 31, 2022 and Yanacocha (48.65%) and Merian (25%) for the three months and year ended December 31, 2021. The Company acquired the remaining interest in Yanacocha in 2022, resulting in 100% ownership interest at December 31, 2022.

(2)

For the three months and year ended December 31, 2022, Yanacocha had total consolidated Additions to property, plant and mine development of $166 and $403, respectively, on a cash basis. For the three months and year ended December 31, 2022, Merian had total consolidated Additions to property, plant and mine development of $19 and $56, respectively, on a cash basis.

(3)

Net cash provided by (used in) investing activities includes Additions to property, plant and mine development, which is included in the Company’s computation of Free Cash Flow.​

Three Months Ended December 31, 2021

 

Year Ended December 31, 2021

 

Consolidated

 

Attributable

to

noncontrolling

interests (1)

 

Attributable to

Newmont

Stockholders

 

Consolidated

 

Attributable

to

noncontrolling

interests (1)

 

Attributable to

Newmont

Stockholders

Net cash provided by (used in) operating activities

$

1,299

 

 

$

1

 

$

1,300

 

 

$

4,279

 

 

$

(91

)

 

$

4,188

 

Less: Net cash used in (provided by) operating activities of discontinued operations

 

 

 

 

 

 

 

 

 

(13

)

 

 

 

 

 

(13

)

Net cash provided by (used in) operating activities of continuing operations

 

1,299

 

 

 

1

 

 

1,300

 

 

 

4,266

 

 

 

(91

)

 

 

4,175

 

Less: Additions to property, plant and mine development (2)

 

(441

)

 

 

36

 

 

(405

)

 

 

(1,653

)

 

 

86

 

 

 

(1,567

)

Free Cash Flow

$

858

 

 

$

37

 

$

895

 

 

$

2,613

 

 

$

(5

)

 

$

2,608

 

 

 

 

 

 

 

 

 

 

 

 

 

Net cash provided by (used in) investing activities (3)

$

(351

)

 

 

 

 

 

$

(1,868

)

 

 

 

 

Net cash provided by (used in) financing activities

$

(595

)

 

 

 

 

 

$

(2,958

)

 

 

 

 

(1)

Adjustment to eliminate a portion of Net cash provided by (used in) operating activities, Net cash provided by (used in) operating activities of discontinued operations and Additions to property, plant and mine development attributable to noncontrolling interests, which relate to Yanacocha (48.65%) and Merian (25%).

(2)

For the three months and year ended December 31, 2021, Yanacocha had total consolidated Additions to property, plant and mine development of $66 and $155, respectively, on a cash basis. For the three months and year ended December 31, 2021, Merian had total consolidated Additions to property, plant and mine development of $17 and $48, respectively, on a cash basis.

(3)

Net cash provided by (used in) investing activities includes Additions to property, plant and mine development, which is included in the Company’s computation of Free Cash Flow.​

Net Debt

Management uses Net Debt to measure the Company’s liquidity and financial position. Net Debt is calculated as Debt and Lease and other financing obligations less Cash and cash equivalents and time deposits included in Time deposits and other investments, as presented on the Consolidated Balance Sheets. Cash and cash equivalents and time deposits are subtracted from Debt and Lease and other financing obligations as these are highly liquid, low-risk investments and could be used to reduce the Company's debt obligations. The Company believes the use of Net Debt allows investors and others to evaluate financial flexibility and strength of the Company's balance sheet. Net Debt is intended to provide additional information only and does not have any standardized meaning prescribed by GAAP and should not be considered in isolation or as a substitute for measures of liquidity prepared in accordance with GAAP. Other companies may calculate this measure differently.

The following table sets forth a reconciliation of Net Debt, a non-GAAP financial measure, to Debt and Lease and other financing obligations, which the Company believes to be the GAAP financial measures most directly comparable to Net Debt.

At December 31,

2022

 

At December 31,

2021

Debt

$

5,571

 

 

$

5,652

 

Lease and other financing obligations

 

561

 

 

 

650

 

Less: Cash and cash equivalents

 

(2,877

)

 

 

(4,992

)

Less: Time deposits (1)

 

(829

)

 

 

 

Net debt

$

2,426

 

 

$

1,310

 

(1)

Refer to Note 15 of the Consolidated Financial Statements for further information.

Costs applicable to sales per ounce/gold equivalent ounce

Costs applicable to sales per ounce/gold equivalent ounce are non-GAAP financial measures. These measures are calculated by dividing the costs applicable to sales of gold and other metals by gold ounces or gold equivalent ounces sold, respectively. These measures are calculated for the periods presented on a consolidated basis. We believe that these measures provide additional information to management, investors and others that aids in the understanding of the economics of our operations and performance compared to other producers and provides investors visibility into the direct and indirect costs related to production, excluding depreciation and amortization, on a per ounce/gold equivalent ounce basis. Costs applicable to sales per ounce/gold equivalent ounce statistics are intended to provide additional information only and do not have any standardized meaning prescribed by GAAP and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP. The measures are not necessarily indicative of operating profit or cash flow from operations as determined under GAAP. Other companies may calculate these measures differently.

The following tables reconcile these non-GAAP measures to the most directly comparable GAAP measures.

Costs applicable to sales per ounce

 

 

Three Months Ended

December 31,

 

Year Ended

December 31,

 

2022

 

2021

 

2022

 

2021

Costs applicable to sales (1)(2)

$

1,513

 

$

1,297

 

$

5,423

 

$

4,628

Gold sold (thousand ounces)

 

1,610

 

 

1,620

 

 

5,812

 

 

5,897

Costs applicable to sales per ounce (3)

$

940

 

$

802

 

$

933

 

$

785

(1)

Includes by-product credits of $34 and $109 during the three months and year ended December 31, 2022, respectively, and $33 and $187 during the three months and year ended December 31, 2021, respectively.

(2)

Excludes Depreciation and amortization and Reclamation and remediation.

(3)

Per ounce measures may not recalculate due to rounding.

Costs applicable to sales per gold equivalent ounce

 

 

Three Months Ended

December 31,

 

Year Ended

December 31,

 

2022

 

2021

 

2022

 

2021

Costs applicable to sales (1)(2)

$

267

 

$

243

 

$

1,045

 

$

807

Gold equivalent ounces - other metals sold (thousand ounces) (3)

 

311

 

 

328

 

 

1,275

 

 

1,258

Costs applicable to sales per ounce (4)

$

857

 

$

739

 

$

819

 

$

640

(1)

Includes by-product credits of $2 and $8 during the three months and year ended December 31, 2022, respectively, and $2 and $7 during the three months and year ended December 31, 2021, respectively.

(2)

Excludes Depreciation and amortization and Reclamation and remediation.

(3)

Gold equivalent ounces is calculated as pounds or ounces produced multiplied by the ratio of the other metals price to the gold price, using Gold ($1,200/oz.), Copper ($3.25/lb.), Silver ($23.00/oz.), Lead ($0.95/lb.) and Zinc ($1.15/lb.) pricing for 2022 and Gold ($1,200/oz.), Copper ($2.75/lb.), Silver ($22.00/oz.), Lead ($0.90/lb.) and Zinc ($1.05/lb.) pricing for 2021.

(4)

Per ounce measures may not recalculate due to rounding.​

Costs applicable to sales per ounce for Nevada Gold Mines (NGM)

 

 

Three Months Ended

December 31,

 

Year Ended

December 31,

 

2022

 

2021

 

2022

 

2021

Cost applicable to sales, NGM (1)(2)

$

300

 

$

286

 

$

1,153

 

$

960

Gold sold (thousand ounces), NGM

 

320

 

 

381

 

 

1,165

 

 

1,274

Costs applicable to sales per ounce, NGM (3)

$

934

 

$

753

 

$

989

 

$

755

(1)

See Note 3 to the Consolidated Financial Statements.

(2)

Excludes Depreciation and amortization and Reclamation and remediation.

(3)

Per ounce measures may not recalculate due to rounding.

All-In Sustaining Costs

Current GAAP measures used in the mining industry, such as cost of goods sold, do not capture all of the expenditures incurred to discover, develop and sustain production. Therefore, Newmont calculates All-In Sustaining Costs (“AISC”) based on the definition published by the World Gold Council. The World Gold Council is a market development organization for the gold industry comprised of and funded by gold mining companies around the world and a regulatory organization.

AISC is a metric that expands on GAAP measures, such as cost of goods sold, and non-GAAP measures, such as costs applicable to sales per ounce, to provide visibility into the economics of our mining operations related to expenditures, operating performance and the ability to generate cash flow from our continuing operations. We believe that AISC is a non-GAAP measure that provides additional information to management, investors and others that aids in the understanding of the economics of our operations and performance compared to other producers and provides investors visibility by better defining the total costs associated with production.

AISC amounts are intended to provide additional information only and do not have any standardized meaning prescribed by GAAP and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP. The measures are not necessarily indicative of operating profit or cash flow from operations as determined under GAAP. Other companies may calculate these measures differently as a result of differences in the underlying accounting principles, policies applied and in accounting frameworks such as in IFRS, or by reflecting the benefit from selling non-gold metals as a reduction to AISC. Differences may also arise related to definitional differences of sustaining versus development (i.e. non-sustaining) activities based upon each company’s internal policies.

The following disclosure provides information regarding the adjustments made in determining the All-In Sustaining Costs measure:

Costs applicable to sales. Includes all direct and indirect costs related to current production incurred to execute the current mine plan. We exclude certain exceptional or unusual amounts from CAS, such as significant revisions to recovery amounts. CAS includes by-product credits from certain metals obtained during the process of extracting and processing the primary ore-body. CAS is accounted for on an accrual basis and excludes Depreciation and amortization and Reclamation and remediation, which is consistent with our presentation of CAS on the Consolidated Statements of Operations. In determining AISC, only the CAS associated with producing and selling an ounce of gold is included in the measure. Therefore, the amount of gold CAS included in AISC is derived from the CAS presented in the Company’s Consolidated Statements of Operations less the amount of CAS attributable to the production of other metals. The other metals' CAS at those mine sites is disclosed in Note 3 of the Consolidated Financial Statements. The allocation of CAS between gold and other metals is based upon the relative sales value of gold and other metals produced during the period.

Reclamation costs. Includes accretion expense related to reclamation liabilities and the amortization of the related ARC for the Company’s operating properties. Accretion related to the reclamation liabilities and the amortization of the ARC assets for reclamation does not reflect annual cash outflows but are calculated in accordance with GAAP. The accretion and amortization reflect the periodic costs of reclamation associated with current production and are therefore included in the measure. The allocation of these costs to gold and other metals is determined using the same allocation used in the allocation of CAS between gold and other metals.

Advanced projects, research and development and exploration. Includes incurred expenses related to projects that are designed to sustain current production and exploration. We note that as current resources are depleted, exploration and advanced projects are necessary for us to replace the depleting reserves or enhance the recovery and processing of the current reserves to sustain production at existing operations. As these costs relate to sustaining our production, and are considered a continuing cost of a mining company, these costs are included in the AISC measure. These costs are derived from the Advanced projects, research and development and Exploration amounts presented in the Consolidated Statements of Operations less incurred expenses related to the development of new operations, or related to major projects at existing operations where these projects will materially benefit the operation in the future. The allocation of these costs to gold and other metals is determined using the same allocation used in the allocation of CAS between gold and other metals. We also allocate these costs incurred at the Other North America, Other Australia and Corporate and Other locations using the proportion of CAS between gold and other metals.

General and administrative. Includes costs related to administrative tasks not directly related to current production, but rather related to supporting our corporate structure and fulfilling our obligations to operate as a public company. Including these expenses in the AISC metric provides visibility of the impact that general and administrative activities have on current operations and profitability on a per ounce basis. We allocate these costs to gold and other metals at the Other North America, Other Australia and Corporate and Other locations using the proportion of CAS between gold and other metals.

Other expense, net. For Other expense, net we include care and maintenance costs relating to direct operating costs incurred at the mine sites during the period that these sites were temporarily placed into care and maintenance in response to the COVID-19 pandemic and exclude certain exceptional or unusual expenses, such as restructuring, as these are not indicative to sustaining our current operations. Furthermore, this adjustment to Other expense, net is also consistent with the nature of the adjustments made to Net income (loss) attributable to Newmont stockholders as disclosed in the Company’s non-GAAP financial measure Adjusted net income (loss). The allocation of these costs to gold and other metals is determined using the same allocation used in the allocation of CAS between gold and other metals.

Treatment and refining costs. Includes costs paid to smelters for treatment and refining of our concentrates to produce the salable metal. These costs are presented net as a reduction of Sales on the Consolidated Statements of Operations. The allocation of these costs to gold and other metals is determined using the same allocation used in the allocation of CAS between gold and other metals.

Sustaining capital and finance lease payments. We determined sustaining capital and finance lease payments as those capital expenditures and finance lease payments that are necessary to maintain current production and execute the current mine plan. We determined development (i.e. non-sustaining) capital expenditures and finance lease payments to be those payments used to develop new operations or related to projects at existing operations where those projects will materially benefit the operation and are excluded from the calculation of AISC. The classification of sustaining and development capital projects and finance leases is based on a systematic review of our project portfolio in light of the nature of each project. Sustaining capital and finance lease payments are relevant to the AISC metric as these are needed to maintain the Company’s current operations and provide improved transparency related to our ability to finance these expenditures from current operations. The allocation of these costs to gold and other metals is determined using the same allocation used in the allocation of CAS between gold and other metals. We also allocate these costs incurred at the Other North America, Other Australia and Corporate and Other locations using the proportion of CAS between gold and other metals.

Three Months Ended

December 31, 2022

Costs

Applicable

to

Sales(1)(2)(3)

 

Reclamation

Costs(4)

 

Advanced

Projects,

Research and

Development

and

Exploration(5)

 

General and

Administrative

 

Other

Expense,

Net(6)(7)

 

Treatment

and

Refining

Costs

 

Sustaining

Capital

and Lease

Related

Costs(8)(9)

 

All-In

Sustaining

Costs

 

Ounces

(000)

Sold

All-In

Sustaining

Costs Per

oz.(10)

Gold

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CC&V

$

76

 

$

5

 

$

4

 

 

$

 

$

(1

)

 

$

 

$

15

 

$

99

 

55

 

$

1,783

Musselwhite

 

52

 

 

1

 

 

3

 

 

 

 

 

 

 

 

 

 

21

 

 

77

 

57

 

 

1,355

Porcupine

 

72

 

 

3

 

 

2

 

 

 

 

 

 

 

 

 

 

17

 

 

94

 

79

 

 

1,188

Éléonore

 

69

 

 

2

 

 

4

 

 

 

 

 

 

 

 

 

 

18

 

 

93

 

66

 

 

1,426

Peñasquito

 

119

 

 

2

 

 

1

 

 

 

 

 

2

 

 

 

2

 

 

20

 

 

146

 

165

 

 

884

Other North America

 

 

 

 

 

1

 

 

 

1

 

 

 

 

 

 

 

 

 

2

 

 

 

North America

 

388

 

 

13

 

 

15

 

 

 

1

 

 

1

 

 

 

2

 

 

91

 

 

511

 

422

 

 

1,213

 

 

 

 

 

 

 

 

 

 

 

 

Yanacocha

 

99

 

 

5

 

 

(1

)

 

 

1

 

 

2

 

 

 

 

 

6

 

 

112

 

60

 

 

1,833

Merian

 

99

 

 

2

 

 

2

 

 

 

 

 

(1

)

 

 

 

 

20

 

 

122

 

118

 

 

1,043

Cerro Negro

 

78

 

 

 

 

 

 

 

2

 

 

1

 

 

 

 

 

14

 

 

95

 

73

 

 

1,300

Other South America

 

 

 

 

 

 

 

 

1

 

 

1

 

 

 

 

 

 

 

2

 

 

 

South America

 

276

 

 

7

 

 

1

 

 

 

4

 

 

3

 

 

 

 

 

40

 

 

331

 

251

 

 

1,318

 

 

 

 

 

 

 

 

 

 

 

 

Boddington

 

161

 

 

5

 

 

2

 

 

 

 

 

 

 

 

4

 

 

10

 

 

182

 

197

 

 

922

Tanami

 

98

 

 

 

 

1

 

 

 

 

 

 

 

 

 

 

35

 

 

134

 

128

 

 

1,044

Other Australia

 

 

 

 

 

1

 

 

 

2

 

 

 

 

 

 

 

2

 

 

5

 

 

 

Australia

 

259

 

 

5

 

 

4

 

 

 

2

 

 

 

 

 

4

 

 

47

 

 

321

 

325

 

 

986

 

 

 

 

 

 

 

 

 

 

 

Ahafo

 

176

 

 

4

 

 

2

 

 

 

 

 

2

 

 

 

 

 

27

 

 

211

 

176

 

 

1,202

Akyem

 

114

 

 

12

 

 

 

 

 

 

 

1

 

 

 

 

 

8

 

 

135

 

116

 

 

1,157

Other Africa

 

 

 

 

 

2

 

 

 

2

 

 

 

 

 

 

 

1

 

 

5

 

 

 

Africa

 

290

 

 

16

 

 

4

 

 

 

2

 

 

3

 

 

 

 

 

36

 

 

351

 

292

 

 

1,203

 

 

 

 

 

 

 

 

 

 

 

Nevada Gold Mines

 

300

 

 

2

 

 

4

 

 

 

3

 

 

 

 

 

3

 

 

68

 

 

380

 

320

 

 

1,186

Nevada

 

300

 

 

2

 

 

4

 

 

 

3

 

 

 

 

 

3

 

 

68

 

 

380

 

320

 

 

1,186

 

 

 

 

 

 

 

 

 

 

 

Corporate and Other

 

 

 

 

 

12

 

 

 

46

 

 

2

 

 

 

 

 

3

 

 

63

 

 

 

Total Gold

$

1,513

 

$

43

 

$

40

 

 

$

58

 

$

9

 

 

$

9

 

$

285

 

$

1,957

 

1,610

 

$

1,215

 

 

 

 

 

 

 

 

 

 

 

Gold equivalent ounces - other metals (11)

 

 

 

 

 

 

 

 

 

 

Peñasquito

$

217

 

$

5

 

$

2

 

 

$

 

$

2

 

 

$

35

 

$

34

 

$

295

 

251

 

$

1,178

Other North America

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

North America

 

217

 

 

5

 

 

2

 

 

 

 

 

2

 

 

 

35

 

 

34

 

 

295

 

251

 

 

1,181

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Boddington

 

50

 

 

 

 

1

 

 

 

1

 

 

 

 

 

2

 

 

3

 

 

57

 

60

 

 

939

Other Australia

 

 

 

 

 

 

 

 

1

 

 

 

 

 

 

 

 

 

1

 

 

 

Australia

 

50

 

 

 

 

1

 

 

 

2

 

 

 

 

 

2

 

 

3

 

 

58

 

60

 

 

954

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate and Other

 

 

 

 

 

2

 

 

 

6

 

 

1

 

 

 

 

 

1

 

 

10

 

 

 

Total Gold Equivalent Ounces

$

267

 

$

5

 

$

5

 

 

$

8

 

$

3

 

 

$

37

 

$

38

 

$

363

 

311

 

$

1,166

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated

$

1,780

 

$

48

 

$

45

 

 

$

66

 

$

12

 

 

$

46

 

$

323

 

$

2,320

 

 

 

 

(1)

Excludes Depreciation and amortization and Reclamation and remediation.

(2)

Includes by-product credits of $36 and excludes co-product revenues of $370.

(3)

Includes stockpile and leach pad inventory adjustments of $19 at CC&V, $24 at Yanacocha, $9 at Ahafo, $17 at Akyem, and $2 at NGM.

(4)

Reclamation costs include operating accretion and amortization of asset retirement costs of $16 and $32, respectively, and exclude accretion and reclamation and remediation adjustments at former operating properties and historic mining operations that have entered the closure phase and have no substantive future economic value of $29 and $713, respectively.

(5)

Advanced projects, research and development and Exploration excludes development expenditures of $1 at Porcupine, $1 at Other North America, $12 at Yanacocha, $2 at Merian, $10 at Cerro Negro, $11 at Other South America, $6 at Tanami, $4 at Other Australia, $6 at Ahafo, $2 at Akyem, $4 at NGM and $18 at Corporate and Other, totaling $77 related to developing new operations or major projects at existing operations where these projects will materially benefit the operation.

(6)

Other expense, net includes incremental COVID-19 costs incurred as a result of actions taken to protect against the impacts of the COVID-19 pandemic at our operational sites of $2 for South America.

(7)

Other expense, net is adjusted for impairment of long-lived and other assets of $1,317, distributions from the Newmont Global Community Support Fund of $2 and restructuring and severance costs of $1.

(8)

Includes sustaining capital expenditures of $113 for North America, $39 for South America, $46 for Australia, $35 for Africa, $70 for Nevada, and $4 for Corporate and Other, totaling $307 and excludes development capital expenditures, capitalized interest and the change in accrued capital totaling $339. Refer to Liquidity and Capital Resources within Part II, Item 7, Management's Discussion and Analysis for discussion of major development projects.

(9)

Includes finance lease payments for sustaining projects of $16.

(10)

Per ounce measures may not recalculate due to rounding.

(11)

Gold equivalent ounces is calculated as pounds or ounces produced multiplied by the ratio of the other metals price to the gold price, using Gold ($1,200/oz.), Copper ($3.25/lb.), Silver ($23.00/oz.), Lead ($0.95/lb.) and Zinc ($1.15/lb.) pricing for 2022.

Three Months Ended

December 31, 2021

Costs

Applicable

to

Sales(1)(2)(3)

 

Reclamation

Costs(4)

 

Advanced

Projects,

Research and

Development

and

Exploration(5)

 

General and

Administrative

 

Other

Expense,

Net (6)(7)

 

Treatment

and

Refining

Costs

 

Sustaining

Capital

and Lease

Related

Costs(8)(9)

 

All-In

Sustaining

Costs

 

Ounces

(000)

Sold

 

All-In

Sustaining

Costs Per

oz.(10)

Gold

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CC&V

$

71

 

$

2

 

$

2

 

 

$

 

$

 

 

$

 

$

6

 

$

81

 

 

52

 

$

1,553

Musselwhite

 

43

 

 

1

 

 

2

 

 

 

 

 

 

 

 

 

 

11

 

 

57

 

 

45

 

 

1,260

Porcupine

 

73

 

 

1

 

 

2

 

 

 

 

 

 

 

 

 

 

12

 

 

88

 

 

75

 

 

1,175

Éléonore

 

59

 

 

1

 

 

 

 

 

 

 

1

 

 

 

 

 

16

 

 

77

 

 

61

 

 

1,265

Peñasquito

 

117

 

 

1

 

 

 

 

 

 

 

2

 

 

 

7

 

 

19

 

 

146

 

 

179

 

 

821

Other North America

 

 

 

 

 

 

 

 

2

 

 

2

 

 

 

 

 

 

 

4

 

 

 

 

North America

 

363

 

 

6

 

 

6

 

 

 

2

 

 

5

 

 

 

7

 

 

64

 

 

453

 

 

412

 

 

1,100

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Yanacocha

 

58

 

 

10

 

 

3

 

 

 

 

 

5

 

 

 

 

 

8

 

 

84

 

 

67

 

 

1,268

Merian

 

82

 

 

1

 

 

 

 

 

 

 

1

 

 

 

 

 

18

 

 

102

 

 

112

 

 

920

Cerro Negro

 

80

 

 

2

 

 

(2

)

 

 

 

 

7

 

 

 

 

 

19

 

 

106

 

 

78

 

 

1,365

Other South America

 

 

 

 

 

1

 

 

 

3

 

 

 

 

 

 

 

 

 

4

 

 

 

 

South America

 

220

 

 

13

 

 

2

 

 

 

3

 

 

13

 

 

 

 

 

45

 

 

296

 

 

257

 

 

1,158

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Boddington

 

163

 

 

3

 

 

2

 

 

 

 

 

 

 

 

3

 

 

9

 

 

180

 

 

183

 

 

998

Tanami

 

74

 

 

1

 

 

2

 

 

 

 

 

2

 

 

 

 

 

32

 

 

111

 

 

146

 

 

757

Other Australia

 

 

 

 

 

 

 

 

2

 

 

 

 

 

 

 

2

 

 

4

 

 

 

 

Australia

 

237

 

 

4

 

 

4

 

 

 

2

 

 

2

 

 

 

3

 

 

43

 

 

295

 

 

329

 

 

904

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ahafo

 

129

 

 

2

 

 

1

 

 

 

 

 

 

 

 

 

 

24

 

 

156

 

 

149

 

 

1,038

Akyem

 

62

 

 

9

 

 

2

 

 

 

 

 

 

 

 

 

 

15

 

 

88

 

 

92

 

 

950

Other Africa

 

 

 

 

 

1

 

 

 

2

 

 

1

 

 

 

 

 

 

 

4

 

 

 

 

Africa

 

191

 

 

11

 

 

4

 

 

 

2

 

 

1

 

 

 

 

 

39

 

 

248

 

 

241

 

 

1,020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nevada Gold Mines

 

286

 

 

1

 

 

3

 

 

 

3

 

 

 

 

 

 

 

44

 

 

337

 

 

381

 

 

887

Nevada

 

286

 

 

1

 

 

3

 

 

 

3

 

 

 

 

 

 

 

44

 

 

337

 

 

381

 

 

887

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate and Other

 

 

 

 

 

24

 

 

 

47

 

 

1

 

 

 

 

 

8

 

 

80

 

 

 

 

Total Gold

$

1,297

 

$

35

 

$

43

 

 

$