Newmont Goldcorp Announces Third Quarter 2019 Results

DENVER–(BUSINESS WIRE)–Newmont Goldcorp Corporation (NYSE: NEM, TSX: NGT) (Newmont Goldcorp or the Company) today announced third quarter 2019 results.

  • Net income: Delivered GAAP net income from continuing operations attributable to Newmont Goldcorp stockholders of $2,226 million or $2.71 per diluted share; delivered adjusted net income1 of $292 million or $0.36 per diluted share, an increase of $0.03 compared to the prior year quarter
  • EBITDA: Generated $1,079 million in adjusted EBITDA2, an increase of 70 percent from the prior year quarter
  • Cash flow: Reported consolidated cash flow from continuing operations of $793 million and free cash flow3 of $365 million, an increase of 85 percent and 137 percent over the prior year quarter, respectively
  • Gold costs applicable to sales (CAS)4: Reported CAS of $733 per ounce, an increase of 6 percent over the prior year quarter
  • Gold all-in sustaining costs (AISC)5: Reported AISC of $987 per ounce, an increase of 10 percent over the prior year quarter
  • Attributable gold production: Produced 1.64 million ounces of gold, an increase of 28 percent over the prior year quarter
  • Portfolio improvements: Closed the Nevada Gold Mines joint venture; divested the Nimba iron ore project in Guinea; announced process to review potential sale opportunities for Red Lake in Canada; achieved commercial production at the Borden mine in Canada, Ahafo Mill Expansion in Ghana, and Quecher Main in Peru; advanced Tanami Expansion 2 to execution
  • Financial strength: Ended the quarter with $2.7 billion of consolidated cash and net debt of $4.8 billion, supporting an investment-grade credit profile; declared a third quarter dividend of $0.14 per share
  • Outlook: 2019 attributable production of 6.3 million ounces, CAS at $715 per ounce and AISC at $965 per ounce

“Newmont Goldcorp generated $1,079 million in adjusted EBITDA and $365 million in free cash flow for the third quarter, building momentum for an even stronger fourth quarter,” said Tom Palmer, President and Chief Executive Officer. “We expect to deliver $240 million in annual run-rate improvements by the end of 2019 and exceed our initial synergy targets from the Goldcorp acquisition. We also continued to strengthen our portfolio and advance profitable growth by bringing on Borden, the Ahafo Mill Expansion and Quecher Main on time and within budget.”

Third Quarter 2019 Summary Results

Net income (loss) from continuing operations attributable to Newmont stockholders for the quarter was $2,226 million or $2.71 per diluted share, an increase of $2,387 million from the prior year quarter primarily due to the gain recognized on the formation of Nevada Gold Mines as well as higher production and realized gold prices.

Adjusted net income was $292 million or $0.36 per diluted share, compared to $175 million or $0.33 per diluted share in the prior year quarter. The adjustments to net income of $2.35 primarily related to a gain on the formation of Nevada Gold Mines, transaction costs associated with the Newmont Goldcorp transaction, tax and valuation allowance adjustments, changes in the fair value of investments, and reclamation and remediation charges.

Revenue rose 57 percent to $2,713 million for the quarter primarily due to higher realized gold prices and higher sales volumes, including a full quarter from the Goldcorp assets.

Average realized price6 for gold was $1,476, an increase of $275 per ounce over the prior year quarter; average realized price for copper was $2.37, a decrease of $0.13 per pound over the prior year quarter; average realized price for silver, lead and zinc were $17.18 per ounce, $0.84 per pound and $0.81 per pound, respectively.

Gold CAS increased 29 percent to $1,232 million for the quarter due to a full quarter of costs included from the Goldcorp assets. Gold CAS per ounce increased 6 percent from the prior year quarter to $733 per ounce primarily due to gold price-related royalties, and higher unit costs at Peñasquito and Red Lake, partially offset by higher ounces sold and lower stockpile and leachpad inventory adjustments.

Gold AISC increased 10 percent to $987 per ounce for the quarter primarily due to higher gold CAS per ounce and higher sustaining capital spend.

Attributable gold production7 increased 28 percent to 1.64 million ounces for the quarter primarily due to new production from the Goldcorp assets and higher grades at Ahafo, partially offset by lower grades at KCGM, Boddington, Yanacocha and Merian.

Attributable gold equivalent ounce (GEO) production from other metals increased to 236 thousand ounces primarily due to new silver, lead and zinc production from Peñasquito, partially offset by the classification of copper as a by-product following the formation of Nevada Gold Mines and lower copper grades at Boddington. CAS from other metals totaled $160 million for the quarter. CAS per GEO increased 5 percent to $747 per ounce primarily due to an unfavorable strip ratio and higher mill maintenance costs at Boddington in Australia. AISC per GEO increased 33 percent to $1,155 per ounce primarily due to higher sustaining capital spend, higher treatment and refining costs and higher CAS per GEO.

Capital expenditures8 rose by 56 percent to $428 million, primarily due to increased sustaining capital investment from a full quarter with the Goldcorp assets and higher spending for growth projects, including Quecher Main, Ahafo Mill Expansion, Tanami Expansion 2, Yanacocha Sulfides, and Ahafo North.

Consolidated operating cash flow from continuing operations increased 85 percent from the prior year quarter to $793 million due to higher realized gold prices and inclusion of sales from the Goldcorp assets, partially offset by costs related to the Newmont Goldcorp transaction. Free cash flow also increased to $365 million for the quarter, primarily due to higher operating cash flow, partially offset by higher capital expenditures.

Balance sheet ended the quarter with $2.7 billion of consolidated cash and a leverage ratio of 1.4x net debt to pro forma adjusted EBITDA9, issued $700 million of 2.800 percent Senior Notes due 2029 and retired $626 million of 5.125 percent Senior Notes due 2019 on October 1.

Corporate update

Nevada Gold Mines joint venture: On July 1, 2019, Newmont Goldcorp and Barrick Gold Corporation consummated the transaction establishing Nevada Gold Mines LLC (NGM). NGM is owned 38.5 percent by Newmont Goldcorp and owned 61.5 percent and operated by Barrick. The formation of NGM diversifies the Company’s footprint in Nevada and allows Newmont Goldcorp to benefit from additional efficiencies through integrated mine planning and processing. 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. Third quarter EBITDA for NGM was $234 million. Attributable gold production was 344 thousand ounces with CAS of $701 per ounce and AISC of $920 per ounce.

Projects update

Newmont Goldcorp’s capital-efficient project pipeline supports stable production with improving margins and mine life. Near-term development capital projects and recently completed projects are presented below. Funding for Musselwhite Materials Handling has been approved and the project is in execution. Additional projects not listed below represent incremental improvements to production and cost guidance. Internal rates of return (IRR) on these projects are calculated at a $1,200 gold price.

  • Quecher Main (South America) adds oxide production at Yanacocha, leverages existing infrastructure and enables potential future growth at Yanacocha. First production was achieved in late 2018 and commercial production was declared on October 31, 2019. Quecher Main extends the life of the Yanacocha operation to 2027 with average annual gold production of approximately 200,000 ounces per year between 2020 and 2025 (100 percent basis). During the same period, incremental CAS is expected to be between $750 and $850 per ounce and AISC between $900 and $1,000 per ounce. The full project, including future leach pad expansions, is expected to be completed for approximately $275 million10 of development capital which is below the Company’s initial estimate. The project IRR is expected to be 15 percent.
  • Ahafo Mill Expansion (Africa) is designed to maximize resource value by improving production margins and accelerating stockpile processing. The project also supports profitable development of Ahafo’s highly prospective underground resources. First production was achieved in September 2019 and commercial production was declared on October 15, 2019. The expansion is expected to increase average annual gold production by between 75,000 and 100,000 ounces per year for the first five years beginning in 2020. Capital cost for the project was approximately $175 million. The project IRR is expected to be more than 20 percent.
  • Borden, North America (North America) is a new underground mine expected to extend profitable production at the Porcupine complex. Commercial production was declared on October 1, 2019.
  • Musselwhite Materials Handling (North America) improves material movement from Musselwhite’s two main zones below Lake Opapimiskan. An underground shaft will hoist ore from the underground crushers, reducing haulage distances and ventilation costs. The Company expects the project to be fully operational in mid-2020 after development progress was impacted by the conveyor fire at Musselwhite.

1

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

2

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

3

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

4

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

5

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

6

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

7

Attributable gold production includes 94,000 ounces from the Company’s equity method investment in Pueblo Viejo (40%)

8

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

9

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

10

The Quecher Main project has incurred development capital costs of approximately $185 million through October 31, 2019, and will complete Phase 3 and 4 of the leach pad expansion over the next 3 years with a remaining capital investment of approximately $90 million.

Outlook

Newmont Goldcorp’s 2019 outlook reflects a full-year of Newmont operated assets and the Goldcorp assets from April 18, 2019. The Company does not include development projects that have not yet been funded or reached execution stage in the outlook below, which represents upside to guidance. The Nevada guidance includes the Company’s owned and operated Nevada assets through June 30, 2019, and has been updated to reflect the Company’s ownership interest in Nevada Gold Mines for July 1, 2019 to December 31, 2019. Longer term guidance is expected to be updated on December 2, 2019.

Attributable gold production is expected to be 6.3 million ounces in 2019. Production is fourth quarter weighted with the completion of the Ahafo Mill Expansion in Africa, the Borden project in Canada and higher grades expected at Cerro Negro, Éléonore, and Tanami.

  • North America production is expected to be 1.1 million ounces in 2019. The outlook includes the impact from the blockades at Peñasquito, the conveyor fire at Musselwhite, installation of additional safety controls at Red Lake, and lower grades in the third quarter at Éléonore.
  • South America production is expected to be 1.3 million ounces in 2019 with a strong fourth quarter as Cerro Negro reaches higher grades from the Eureka and Mariana Norte zones.
  • Australia production is expected to be 1.4 million ounces in 2019 reflecting the impact of current mining restrictions at KCGM.
  • Africa production is expected to be 1.1 million ounces in 2019 with a full year of production from Subika Underground, higher grades from Subika open pit and improved mill throughput in the second half of the year with completion of the Ahafo Mill Expansion project.
  • Nevada production is expected to be 1.5 million ounces in 2019, which has been updated to reflect Nevada Gold mines for the second half of 2019.

Gold cost outlook CAS is expected to be $715 per ounce and AISC is expected to be $965 per ounce in 2019.

  • North America CAS is expected to be $895 per ounce and AISC is expected to be $1,210 per ounce in 2019. The outlook includes the impact from the blockades at Peñasquito, the conveyor fire at Musselwhite, installation of additional safety controls at Red Lake, and lower grades in the third quarter at Éléonore.
  • South America CAS is expected to be $630 per ounce and AISC is expected to be $785 per ounce in 2019.
  • Australia CAS is expected to be $740 per ounce in 2019 and AISC is expected to be $920 in 2019 and has been updated to reflect improved unit costs at Boddington.
  • Africa CAS is expected to be $585 per ounce in 2019 and AISC is expected to be $770 per ounce in 2019.
  • Nevada CAS is expected to be $750 per ounce in 2019 and AISC is expected to be $945 per ounce in 2019, which has improved with the inclusion of Nevada Gold Mines for the second half of 2019.

Co-product GEOs – Attributable production is expected to be 625,000 GEOs in 2019, which includes silver, zinc, and lead production from Peñasquito, and copper production from Boddington and from Phoenix through June 30, 2019 prior to the formation of Nevada Gold Mines. CAS is expected to be $820 per GEO and AISC is expected to be $1,190 per GEO in 2019.

Capital – Total consolidated capital is expected to be $1,530 million for 2019. Development capital of $550 million in 2019 includes investments in the Borden and Musselwhite Materials Handling projects in North America, Quecher Main in South America, Ahafo Mill Expansion in Africa, and Tanami Power Project in Australia, and expenditures to advance studies for future projects. Sustaining capital is expected to be $980 million for 2019 and includes the Awonsu layback and investments to cover infrastructure, equipment and ongoing mine development.

Consolidated expense outlook The Company’s 2019 outlook for general & administrative costs has been lowered to $315 million, which includes a faster realization of synergies from the Goldcorp integration. Interest expense is expected to be $280 million and investment in exploration and advanced projects is expected to be $415 million in 2019 and has been updated to reflect Nevada Gold Mines. Guidance for depreciation and amortization in 2019 is expected to be $2,050 million.

Assumptions – Newmont Goldcorp’s outlook assumes $1,200 per ounce gold price, $16 per ounce silver price, $2.50 per pound copper price, $1.05 per pound zinc price, $0.90 per pound lead price, $0.70 USD/AUD exchange rate, $0.77 USD/CAD exchange rate, and $65 per barrel WTI oil price.

2019 Outlooka

2019 Outlook +/- 5%

Consolidated

Production

 

Attributable

Production

 

Consolidated

CAS

 

Consolidated

All-in Sustaining

Costsb

 

Consolidated

Sustaining

Capital

Expenditures

 

Consolidated

Development

Capital

Expenditures

(Koz, GEO Koz)

 

(Koz, GEO Koz)

 

($/oz)

 

($/oz)

 

($M)

 

($M)

North America

1,060

 

1,060

 

895

 

1,210

 

305

 

125

South America

1,375

 

1,295

 

630

 

785

 

120

 

185

Australia

1,420

 

1,420

 

740

 

920

 

195

 

65c

Africa

1,105

 

1,105

 

585

 

770

 

125

 

110

Nevada

1,470

 

1,470

 

750

 

945

 

225

 

50

Total Goldd

6,400

 

6,300

 

715

 

965

 

980e

 

550e

 

 

 

 

 

 

 

 

 

 

 

Total Co-products

625

 

625

 

820

 

1,190

 

 

 

 

2019 Consolidated Expense Outlook($M)
General & Administrative

315

Interest Expense

280

Depreciation and Amortization

2,050

Advanced Projects & Exploration

415

Adjusted Tax Ratef,g

34%-39%

a

2019 outlook projections used in this presentation are considered forward-looking statements and represent management’s good faith estimates or expectations of future production results as of November 5, 2019. Outlook is based upon certain assumptions, including, but not limited to, metal prices, oil prices, certain exchange rates and other assumptions. For example, 2019 Outlook assumes $1,200/oz Au, $16/oz Ag, $2.50/lb Cu, $1.05/lb Zn, $0.90/lb Pb, $0.70 USD/AUD exchange rate, $0.77 USD/CAD exchange rate and $65/barrel WTI; AISC and CAS estimates do not include inflation, for the remainder of the year. Production, CAS, AISC and capital estimates exclude projects that have not yet been approved. 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. Estimates include the impact of the Newmont Goldcorp transaction and the impact of the Nevada Gold Mines joint venture which closed on July 1, 2019. 2019 Nevada outlook includes the Company’s owned and operated Nevada assets through June 30, 2019, and has been updated to reflect the Company’s ownership interest in Nevada Gold Mines for July 1, 2019 to December 31, 2019. 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 note at the end of this release.

b

All-in sustaining costs or AISC as used in the Company’s Outlook is a non-GAAP metric; see below for further information and reconciliation to consolidated 2019 CAS outlook.

c

Includes finance lease payments related to the Tanami Power Project paid over a 10 year term beginning in 2019.

d

Attributable gold production outlook includes the Company’s equity investment (40%) in Pueblo Viejo but does not include other equity investments.

e

Total development capital includes ~$15 million of corporate and other spend and total sustaining capital includes ~$10 million of corporate and other spend.

f

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

g

Assuming average prices of $1,300 per ounce for gold, $16 per ounce for silver, $2.75 per pound for copper, $0.90 per pound for lead, and $1.05 per pound for zinc and achievement of current production and sales volumes and cost estimates, we estimate our consolidated adjusted effective tax rate related to continuing operations for 2019 will be between 34%-39%.

 

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

Operating Results

2019

 

2018

 

% Change

 

2019

 

2018

 

% Change

Attributable Sales (koz)

 

 

 

 

 

 

 

 

 

 

 

 

Attributable gold ounces sold

 

1,578

 

1,270

24

%

 

4,352

 

3,648

19

%

Attributable gold equivalent ounces sold

 

213

 

60

255

%

 

357

 

177

102

%

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

Average realized gold price

$

1,476

$

1,201

23

%

$

1,370

$

1,271

8

%

Average realized copper price

$

2.37

$

2.50

(5

)%

$

2.59

$

2.79

(7

)%

Average realized silver price

$

17.18

$

%

$

16.23

$

%

Average realized lead price

$

0.84

$

%

$

0.81

$

%

Average realized zinc price

$

0.81

$

%

$

0.81

$

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Attributable Production (koz)

 

 

 

 

 

 

 

 

 

 

 

 

North America

 

325

 

82

296

%

 

657

 

217

203

%

South America

 

275

 

178

54

%

 

720

 

463

56

%

Australia

 

339

 

385

(12

)%

 

1,038

 

1,142

(9

)%

Africa

 

267

 

212

26

%

 

775

 

621

25

%

Nevada

 

344

 

429

(20

)%

 

1,102

 

1,214

(9

)%

Pueblo Viejo (40%)1

 

94

 

%

 

169

 

%

Total Gold

 

1,644

 

1,286

28

%

 

4,461

 

3,657

22

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

North America

 

203

 

%

 

256

 

%

Australia

 

33

 

40

(18

)%

 

104

 

132

(21

)%

Nevada

 

 

16

(100

)%

 

35

 

48

(27

)%

Total Gold Equivalent Ounces

 

236

 

56

321

%

 

395

 

180

119

%

 

 

 

 

 

 

 

 

 

 

 

 

 

CAS Consolidated ($/oz, $/GEO)

 

 

 

 

 

 

 

 

 

 

 

 

North America

$

945

$

825

15

%

$

976

$

710

37

%

South America

$

669

$

636

5

%

$

638

$

704

(9

)%

Australia

$

768

$

691

11

%

$

749

$

703

7

%

Africa

$

563

$

505

11

%

$

586

$

670

(13

)%

Nevada

$

711

$

799

(11

)%

$

761

$

803

(5

)%

Total Gold

$

733

$

691

6

%

$

733

$

729

1

%

Total Gold (by-product)

$

691

$

671

3

%

$

717

$

705

2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

North America

$

756

$

%

$

980

$

%

Australia

$

758

$

675

12

%

$

819

$

727

13

%

Nevada

$

$

861

(100

)%

$

750

$

886

(15

)%

Total Gold Equivalent Ounces

$

747

$

713

5

%

$

908

$

768

18

%

 

 

 

 

 

 

 

 

 

 

 

 

 

AISC Consolidated ($/oz)

 

 

 

 

 

 

 

 

 

 

 

 

North America

$

1,276

$

927

38

%

$

1,290

$

863

49

%

South America

$

841

$

822

2

%

$

803

$

870

(8)

%

Australia

$

944

$

811

16

%

$

911

$

832

9

%

Africa

$

741

$

679

9

%

$

776

$

818

(5

)%

Nevada

$

915

$

969

(6

)%

$

956

$

982

(3

)%

Total Gold

$

987

$

895

10

%

$

974

$

937

4

%

Total Gold (by-product)

$

997

$

882

13

%

$

986

$

920

7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

North America

$

1,226

$

%

$

1,471

$

%

Australia

$

907

$

803

13

%

$

966

$

865

12

%

Nevada

$

$

1,114

(100

)%

$

894

$

1,095

(18

)%

Total Gold Equivalent Ounces

$

1,155

$

867

33

%

$

1,259

$

924

36

%

1

Represents attributable gold from the Company’s equity method investment in Pueblo Viejo (40%). Income and expenses of equity method investments are included in Equity income (loss) of affiliates.

 

NEWMONT GOLDCORP CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited, in millions except per share)

 

 

 

Three Months Ended

 

Nine Months Ended

 

 

September 30,

 

September 30,

 

 

2019

 

2018

 

2019

 

2018

 

 

 

 

 

 

 

 

 

Sales

$

2,713

 

$

1,726

 

$

6,773

 

$

5,205

 

 

 

 

 

 

 

 

 

 

Costs and expenses

 

 

 

 

 

 

 

 

Costs applicable to sales (1)

 

1,392

 

 

995

 

 

3,736

 

 

2,989

 

Depreciation and amortization

 

548

 

 

299

 

 

1,347

 

 

879

 

Reclamation and remediation

 

62

 

 

31

 

 

165

 

 

96

 

Exploration

 

88

 

 

48

 

 

198

 

 

142

 

Advanced projects, research and development

 

43

 

 

37

 

 

102

 

 

107

 

General and administrative

 

84

 

 

59

 

 

224

 

 

181

 

Impairment of long-lived assets

 

3

 

 

366

 

 

4

 

 

366

 

Other expense, net

 

35

 

 

5

 

 

239

 

 

29

 

 

 

2,255

 

 

1,840

 

 

6,015

 

 

4,789

 

Other income (expense):

 

 

 

 

 

 

 

 

Gain on formation of Nevada Gold Mines

 

2,366

 

 

 

2,366

 

 

Other income, net

 

31

 

 

37

 

 

166

 

 

197

 

Interest expense, net of capitalized interest

 

(77

)

 

(51

)

 

(217

)

 

(153

)

 

 

2,320

 

 

(14

)

 

2,315

 

 

44

 

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

 

2,778

 

 

(128

)

 

3,073

 

 

460

 

Income and mining tax benefit (expense)

 

(558

)

 

(3

)

 

(703

)

 

(126

)

Equity income (loss) of affiliates

 

32

 

 

(9

)

 

53

 

 

(25

)

Net income (loss) from continuing operations

 

2,252

 

 

(140

)

 

2,423

 

 

309

 

Net income (loss) from discontinued operations

 

(48

)

 

16

 

 

(100

)

 

56

 

Net income (loss)

 

2,204

 

 

(124

)

 

2,323

 

 

365

 

Net loss (income) attributable to noncontrolling interests

 

(26

)

 

(21

)

 

(83

)

 

(26

)

Net income (loss) attributable to Newmont stockholders

$

2,178

 

$

(145

)

$

2,240

 

$

339

 

 

 

 

 

 

 

 

 

 

Net income (loss) attributable to Newmont stockholders:

 

 

 

 

 

 

 

 

Continuing operations

$

2,226

 

$

(161

)

$

2,340

 

$

283

 

Discontinued operations

 

(48

)

 

16

 

 

(100

)

 

56

 

 

$

2,178

 

$

(145

)

$

2,240

 

$

339

 

Net income (loss) per common share

 

 

 

 

 

 

 

 

Basic:

 

 

 

 

 

 

 

 

Continuing operations

$

2.72

 

$

(0.31

)

$

3.30

 

$

0.53

 

Discontinued operations

 

(0.06

)

 

0.04

 

 

(0.14

)

 

0.11

 

 

$

2.66

 

$

(0.27

)

$

3.16

 

$

0.64

 

Diluted:

 

 

 

 

 

 

 

 

Continuing operations

$

2.71

 

$

(0.31

)

$

3.30

 

$

0.53

 

Discontinued operations

 

(0.06

)

 

0.04

 

 

(0.14

)

 

0.10

 

 

$

2.65

 

$

(0.27

)

$

3.16

 

$

0.63

 

 

(1) Excludes Depreciation and amortization and Reclamation and remediation.

NEWMONT GOLDCORP CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited, in millions)

 

 

 

Three Months Ended

 

Nine Months Ended

 

 

September 30,

 

September 30,

 

 

2019

 

2018

 

2019

 

2018

Operating activities:

 

 

 

 

 

 

 

 

Net income (loss)

$

2,204

 

$

(124

)

$

2,323

 

$

365

 

Adjustments:

 

 

 

 

 

 

 

 

Depreciation and amortization

 

548

 

 

299

 

 

1,347

 

 

879

 

Stock-based compensation

 

22

 

 

19

 

 

76

 

 

57

 

Reclamation and remediation

 

56

 

 

24

 

 

151

 

 

85

 

Loss (income) from discontinued operations

 

48

 

 

(16

)

 

100

 

 

(56

)

Deferred income taxes

 

435

 

 

(81

)

 

422

 

 

(100

)

Impairment of long-lived assets

 

4

 

 

366

 

 

4

 

 

366

 

Gain on asset and investment sales, net

 

1

 

 

(1

)

 

(32

)

 

(100

)

Gain on formation of Nevada Gold Mines

 

(2,366

)

 

 

(2,366

)

 

Write-downs of inventory and stockpiles and ore on leach pads

 

4

 

 

62

 

 

108

 

 

220

 

Other operating adjustments

 

(13

)

 

37

 

 

(56

)

 

46

 

Net change in operating assets and liabilities

 

(150

)

 

(157

)

 

(409

)

 

(667

)

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

 

793

 

 

428

 

 

1,668

 

 

1,095

 

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

 

(2

)

 

(3

)

 

(7

)

 

(8

)

Net cash provided by (used in) operating activities

 

791

 

 

425

 

 

1,661

 

 

1,087

 

Investing activities:

 

 

 

 

 

 

 

 

Additions to property, plant and mine development

 

(428

)

 

(274

)

 

(1,033

)

 

(763

)

Acquisitions, net (1)

 

6

 

 

(99

)

 

127

 

 

(138

)

Purchases of investments

 

(8

)

 

(11

)

 

(94

)

 

(17

)

Return of investment from an equity method investee

 

3

 

 

 

83

 

 

Proceeds from sales of investments

 

3

 

 

1

 

 

59

 

 

16

 

Proceeds from sales of other assets

 

 

18

 

 

29

 

 

23

 

Other

 

(14

)

 

(2

)

 

12

 

 

(5

)

Net cash provided by (used in) investing activities

 

(438

)

 

(367

)

 

(817

)

 

(884

)

Financing activities:

 

 

 

 

 

 

 

 

Repayment of debt

 

 

 

(1,250

)

 

Dividends paid to common stockholders

 

(109

)

 

(76

)

 

(775

)

 

(226

)

Proceeds from issuance of debt, net

 

690

 

 

 

690

 

 

Distributions to noncontrolling interests

 

(44

)

 

(38

)

 

(137

)

 

(107

)

Funding from noncontrolling interests

 

29

 

 

25

 

 

75

 

 

77

 

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

 

(3

)

 

 

(48

)

 

(39

)

Payments on lease and other financing obligations

 

(11

)

 

 

(37

)

 

(3

)

Proceeds from sale of noncontrolling interests

 

 

 

 

48

 

Repurchases of common stock

 

 

(26

)

 

 

(96

)

Other

 

(22

)

 

 

(24

)

 

Net cash provided by (used in) financing activities

 

530

 

 

(115

)

 

(1,506

)

 

(346

)

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

 

(2

)

 

(2

)

 

(4

)

 

(4

)

Net change in cash, cash equivalents and restricted cash

 

881

 

 

(59

)

 

(666

)

 

(147

)

Cash, cash equivalents and restricted cash at beginning of period

 

1,942

 

 

3,210

 

 

3,489

 

 

3,298

 

Cash, cash equivalents and restricted cash at end of period

$

2,823

 

$

3,151

 

$

2,823

 

$

3,151

 

 

 

 

 

 

 

 

 

 

Reconciliation of cash, cash equivalents and restricted cash:

 

 

 

 

 

 

 

 

Cash and cash equivalents

$

2,712

 

$

3,068

 

$

2,712

 

$

3,068

 

Restricted cash included in Other current assets

 

19

 

 

1

 

 

19

 

 

1

 

Restricted cash included in Other noncurrent assets

 

92

 

 

82

 

 

92

 

 

82

 

Total cash, cash equivalents and restricted cash

$

2,823

 

$

3,151

 

$

2,823

 

$

3,151

 

Contacts

Investor Contacts
Jessica Largent, 303.837.5484

jessica.largent@newmont.com

Media Contacts
Omar Jabara, 303.837.5114

omar.jabara@newmont.com

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Author: dmnnewswire