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The interim Condensed Consolidated Financial Statements (“interim statements”) of Newmont Mining Corporation and its subsidiaries (collectively, “Newmont” or the “Company”) are unaudited. In the opinion of management, all adjustments (including normal recurring adjustments) and disclosures necessary for a fair presentation of these interim statements have been included. The results reported in these interim statements are not necessarily indicative of the results that may be reported for the entire year. These interim statements should be read in conjunction with Newmont’s Consolidated Financial Statements for the year ended December 31, 2015 filed on February 17, 2016 on Form 10-K. The year-end balance sheet data was derived from the audited financial statements and, in accordance with the instructions to Form 10-Q, certain information and footnote disclosures required by United States (U.S.) generally accepted accounting principles (“GAAP”) have been condensed or omitted. References to “A$” refers to Australian currency and “C$” refers to Canadian currency.
On June 30, 2016, Newmont agreed to sell its 48.5% economic interest in PT Newmont Nusa Tenggara (“PTNNT”), which operates the Batu Hijau copper and gold mine (“Batu Hijau”) in Indonesia (the “Batu Hijau Transaction”). Newmont concluded that, as of September 30, 2016, Batu Hijau met the criteria to be treated as held for sale and has been presented as a discontinued operation. Accordingly, (i) Batu Hijau is reflected as held for sale in our Condensed Consolidated Balance Sheets as of September 30, 2016 and December 31, 2015; (ii) our Condensed Consolidated Statements of Operations and Cash Flows have been reclassified to present Batu Hijau as a discontinued operation for all periods presented and (iii) the amounts presented in these notes relate only to our continuing operations, unless otherwise noted. For additional information regarding our discontinued operations, see Note 3.
The Company has reclassified certain prior period amounts to conform to the 2016 presentation including the following items:
The Company retrospectively adopted Accounting Standards Update (“ASU”) 2015-03, which requires debt issuance costs to be presented as a deduction from the corresponding debt liability. Refer to Note 2 for further details.
The Company reclassified regional administrative and community development costs of $16 and $8 from Other expense, net to General and administrative and Costs applicable to sales, respectively, for the three months ended September 30, 2015, and $42 and $18, respectively, for the nine months ended September 30, 2015.
|
|||
NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Risks and Uncertainties
As a global mining company, the Company’s revenue, profitability and future rate of growth are substantially dependent on prevailing prices for gold, copper and, to a lesser extent, silver. Historically, the commodity markets have been very volatile and there can be no assurance that commodity prices will not be subject to wide fluctuations in the future. A substantial or extended decline in commodity prices could have a material adverse effect on the Company’s financial position, results of operations, cash flows, access to capital and the quantities of reserves that the Company can economically produce. The carrying value of the Company’s Property, plant and mine development, net; Inventories; Stockpiles and ore on leach pads and Deferred income tax assets are sensitive to the outlook for commodity prices. A decline in the Company’s long-term price outlook from current levels could result in material impairment charges related to these assets.
On June 30, 2016, the Company, through its subsidiaries, entered into agreements to sell its 48.5% economic interest in PTNNT, which operates the Batu Hijau copper and gold mine in Indonesia. The closing of the sale is subject to various closing conditions, several of which were met during the third quarter of 2016. Certain closing conditions remain outstanding and while the Company expects it is probable that those conditions will be successfully satisfied and the transaction will close in the fourth quarter of 2016, some of the remaining closing conditions are outside the control of the Company, and if not satisfied could result in the sale of PTNNT not being completed. See Note 3 below for a detailed description of the progress made resolving closing conditions during the third quarter of 2016.
In September 2014, PTNNT and the Government of Indonesia signed a Memorandum of Understanding (“MoU”) that resulted in the government agreeing to issue permits to allow PTNNT to export and sell copper concentrates from the Batu Hijau mine. The government has issued several six-month export permits since then, with the most recent permit expected to expire in November 2016. Additionally, negotiations between PTNNT and the Government of Indonesia to amend the Contract of Work (the investment agreement entered into by PTNNT and the Indonesian government in 1986, which includes the right to export copper concentrates and a prohibition against new taxes, duties, and levies) remained on-going at the time that the Company entered into the agreement to sell its interest in PTNNT. In the event that the sale of the Company’s interest in PTNNT does not close prior to November 2016 or does not close at all, no assurances can be made with respect to the outcome of the Contract of Work negotiations and the renewal of the export permit. The failure to receive a timely renewal may negatively impact future operations and financial results at Batu Hijau. As a result of the on-going Contract of Work renegotiations at Batu Hijau, the need for asset impairments, inventory write-downs, tax valuation allowances and other applicable accounting charges will continue to be evaluated. At this time, the Company expects operations to continue into the future until the previously announced sale closes.
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the accounting for and recognition and disclosure of assets, liabilities, equity, revenues and expenses. The Company must make these estimates and assumptions because certain information used is dependent on future events, cannot be calculated with a high degree of precision from data available or simply cannot be readily calculated based on generally accepted methodologies. Actual results could differ from these estimates.
Assets Held for Sale and Discontinued Operations
The Company reports a business as held for sale when management has approved or received approval to sell the business and is committed to a formal plan, the business is available for immediate sale, the business is being actively marketed, the sale is probable and recognition of a completed sale is expected to occur within one year, the sales price is reasonable in relation to its current fair value and actions required to complete the sale indicate that it is unlikely that significant changes to the plan will be made or the plan will be withdrawn, in accordance with Accounting Standard Codification (“ASC”) 360, Property, Plant and Equipment. A business classified as held for sale is recorded at the lower of its carrying amount or estimated fair value less cost to sell. If the carrying amount of the business exceeds its estimated fair value less cost to sell, a loss is recognized. Assets and liabilities related to a business classified as held for sale are segregated in the current and prior balance sheets in the period in which the business is classified as held for sale. If a business is classified as held for sale after the balance sheet date but before the financial statements are issued or are available to be issued, the business continues to be classified as held and used in those financial statements when issued or when available to be issued.
The Company reports the results of operations of a business as discontinued operations if a disposal represents a strategic shift that has (or will have) a major effect on an entity’s operations and financial results when the business is classified as held for sale, in accordance with ASC 360, Property, Plant and Equipment and ASC 205-20, Presentation of Financial Statements - Discontinued Operations. The results of discontinued operations are reported in Net income (loss) from discontinued operations, net of tax in the accompanying Condensed Consolidated Statements of Operations for current and prior periods, including any gain or loss recognized on closing or adjustment of the carrying amount to fair value less cost to sell.
Recently Adopted Accounting Pronouncements
Employee benefit plan accounting
In July 2015, the Financial Accounting Standards Board issued ASU No. 2015-12 related to defined benefit pension plans, defined contribution pension plans and health and welfare benefit plans. This update designates contract value as the only required measure for fully benefit-responsive investment contracts, simplifies and makes more effective the investment disclosure requirements for employee benefit plans and provides a simplified method for determining the measurement date for employee benefit plans. The update is effective in fiscal years, including interim periods, beginning after December 15, 2015. Adoption of this guidance, effective January 1, 2016, had no impact on the Consolidated Financial Statements or disclosures.
Fair value measurement
In May 2015, ASU No. 2015-07 was issued related to investments for which fair value is measured, or is eligible to be measured, using the net asset value per share practical expedient. This update removes the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the net asset value per share practical expedient. The amendment also removes certain disclosure requirements for these investments. This update will impact the annual disclosure related to pension plan assets measured at fair value. This update is effective in fiscal years, including interim periods, beginning after December 15, 2015. Adoption of this guidance, effective January 1, 2016, had no impact on the Consolidated Financial Statements.
Debt issuance costs
In April 2015, ASU No. 2015-03 was issued related to debt issuance costs. This update simplifies the presentation of debt issuance costs by requiring debt issuance costs to be presented as a deduction from the corresponding debt liability. The update is effective in fiscal years, including interim periods, beginning after December 15, 2015. The Company retrospectively adopted this guidance as of March 31, 2016. The Company reclassified $41 of debt issuance costs from Other non-current assets to Debt as of December 31, 2015. The December 31, 2015, balance sheet was adjusted as a result of the adoption of ASU 2015-03 as follows:
|
|
|
At December 31, 2015 |
|
||||
|
|
|
As Reported |
|
As Adjusted |
|
||
|
Other non-current assets |
|
$ |
486 |
|
$ |
445 |
|
|
Debt (non-current) |
|
$ |
5,895 |
|
$ |
5,854 |
|
ASU No. 2015-03 does not specifically address the accounting for deferred financing costs related to line-of-credit arrangements. In August 2015, ASU No. 2015-15 was issued allowing for debt issuance costs associated with line-of-credit arrangements to continue to be presented as assets. The Company will treat all debt issuance costs as a reduction to the carrying value of debt.
Consolidations
In February 2015, ASU No. 2015-02 was issued related to consolidations. This update makes some targeted changes to current consolidation guidance and impacts both the voting and the variable interest consolidation models. In particular, the update changes how companies determine whether limited partnerships or similar entities are variable interest entities. The update is effective in fiscal years, including interim periods, beginning after December 15, 2015. The Company currently consolidates certain variable interest entities. Adoption of this guidance, effective January 1, 2016, had no impact on the Consolidated Financial Statements or disclosures.
Recently Issued Accounting Pronouncements
Statement of Cash Flows
In August 2016, ASU No. 2016-15 was issued related to the statement of cash flows. This new guidance addresses eight specific cash flow issues with the objective of reducing the existing diversity in practice in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. This update is effective in fiscal years, including interim periods, beginning after December 15, 2017 and early adoption is permitted. The Company is currently evaluating this guidance and the impact it will have on the Consolidated Financial Statements and disclosures.
Stock-based compensation
In March 2016, ASU No. 2016-09 was issued related to stock-based compensation. The new guidance simplifies the accounting for stock-based compensation transactions, including income tax consequences, classification of awards as either equity or liabilities and classification on the statement of cash flows. This update is effective in fiscal years, including interim periods, beginning after December 15, 2016, and early adoption is permitted. The Company does not expect the updated guidance to have a material impact on the Consolidated Financial Statements and disclosures.
Leases
In February 2016, ASU No. 2016-02 was issued related to leases. The new guidance modifies the classification criteria and requires lessees to recognize the assets and liabilities arising from most leases on the balance sheet. This update is effective in fiscal years, including interim periods, beginning after December 15, 2018, and early adoption is permitted. The Company is currently evaluating this guidance and the impact it will have on the Consolidated Financial Statements and disclosures.
Investments
In January 2016, ASU No. 2016-01 was issued related to financial instruments. The new guidance requires entities to measure equity investments that do not result in consolidation and are not accounted for under the equity method at fair value and recognize any changes in fair value in net income. This new guidance also updates certain disclosure requirements for these investments. This update is effective in fiscal years, including interim periods, beginning after December 15, 2017, and early adoption is not permitted. The Company does not expect the updated guidance to have a material impact on the Consolidated Financial Statements and disclosures.
Inventory
In July 2015, ASU No. 2015-11 was issued related to inventory, simplifying the subsequent measurement of inventories by replacing the lower of cost or market test with a lower of cost and net realizable value test. The update is effective in fiscal years, including interim periods, beginning after December 15, 2016, and early adoption is permitted. The Company does not expect the updated guidance to have an impact on the Consolidated Financial Statements or disclosures.
Revenue recognition
In May 2014, ASU No. 2014-09 was issued related to revenue from contracts with customers. This ASU was further amended in August 2015, March 2016, April 2016 and May 2016 by ASU No. 2015-14, No. 2016-08, No. 2016-10 and No. 2016-12, respectively. The new standard provides a five-step approach to be applied to all contracts with customers and also requires expanded disclosures about revenue recognition. In August 2015, the effective date was deferred to reporting periods, including interim periods, beginning after December 15, 2017, and will be applied retrospectively. Early adoption is not permitted. The Company is currently evaluating this guidance and the impact it will have on the Consolidated Financial Statements and disclosures.
|
|||
NOTE 3 DISCONTINUED OPERATIONS
The details of our Net income (loss) from discontinued operations, net of tax are set forth below:
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
||||||||
|
|
|
September 30, |
|
September 30, |
|
||||||||
|
|
|
2016 |
|
2015 |
|
2016 |
|
2015 |
|
||||
|
Holt property royalty obligation |
|
$ |
(19) |
|
$ |
17 |
|
$ |
(72) |
|
$ |
34 |
|
|
Batu Hijau operations |
|
|
148 |
|
|
109 |
|
|
424 |
|
|
342 |
|
|
Loss on classification as held for sale |
|
|
(577) |
|
|
— |
|
|
(577) |
|
|
— |
|
|
Net income (loss) from discontinued operations, net of tax |
|
$ |
(448) |
|
$ |
126 |
|
$ |
(225) |
|
$ |
376 |
|
The Batu Hijau Transaction
On June 30, 2016, Nusa Tenggara Partnership B.V. (owned 56.25% by the Company and 43.75% by Nusa Tenggara Mining Corporation, majority owned by Sumitomo Corporation) entered into a binding share sale and purchase agreement with PT Amman Mineral Internasional (“PTAMI”) to sell its 56% ownership interest in PTNNT, which operates the Batu Hijau copper and gold mine in Indonesia. In addition, NVL (USA) Limited (“NVL”), a wholly owned subsidiary of the Company, (i) entered into a binding agreement to sell a loan made to PT Pukuafu Indah (“PTPI”), secured by PTPI’s 17.8% interest in PTNNT, to PTAMI, and (ii) consented to PT Indonesia Masabaga Investama (“PTIMI”) selling its 2.2% interest in PTNNT to PTAMI with sale proceeds applied toward repayment of an NVL loan to PTIMI. Through these transactions, Newmont will effectively sell its 48.5% economic interest in PTNNT to PTAMI and will have no remaining interest.
The sales proceeds to be received by the Company for its 48.5% economic interest in PTNNT includes $920 in cash attributable to Newmont to be received at closing, as well as contingent payments totaling up to $403 attributable to Newmont. The contingent payments include (i) a Metal Price Upside deferred payment of up to $133 attributable to Newmont, (ii) an Elang Development deferred payment of $118 attributable to Newmont and (iii) a Contingent Payment of up to $152 attributable to Newmont. The contingent payment amounts are determined based on certain metal price, shipment or project development criteria, as described below.
The Metal Price Upside contingent payment of up to $133 attributable to Newmont is payable for any quarter in which the London Metal Exchange (“LME”) quarterly average copper price exceeds $3.75 per pound. It is calculated as 30% of the product of (i) the difference between the LME quarterly average copper price and $3.75 and (ii) 96.5% of the total pounds of copper contained in shipments of mineral products mined or produced from Batu Hijau that arrived in a buyers’ or customers’ designated port for delivery during the previous quarter. The Elang Development deferred payment totaling $118 attributable to Newmont is payable no later than the first anniversary of the first shipment of any form of saleable copper, gold or silver product produced from the Elang development area. The Contingent Payment of up to $152 attributable to Newmont is payable (i) as a payment of $76 attributable to Newmont if in any year after 2022 in which there is production from Phase 7 of the Batu Hijau mine and the LME annual average copper price is $2.75 or more per pound and (ii) if the full Contingent Payment amount has not already been paid, a payment of $76 attributable to Newmont in any year in which the LME annual average copper price in respect to such year is $3.25 or more per pound and after both the second anniversary of the first shipment of concentrate (or any other form of saleable copper, gold or silver product) produced from the Elang development area and December 31, 2023. The Company has considered the Contingent Payment and the Elang Development deferred payment deeds to be derivatives under ASC 815 and they will be recorded at fair value upon completion of the sale.
The sale of the Company’s economic interest in PTNNT is subject to customary representations, warranties and covenants by the parties, and is subject to various closing conditions. The following conditions precedent remain outstanding as of September 30, 2016:
|
· |
Valid export licensing at closing. As required by the Indonesian government, PTNNT must hold a valid export license at closing. Newmont’s current export permit is set to expire during November 2016. |
|
· |
Closing of PTMDB’s sale of its stake in PTNNT. PT Multi Daerah Bersaing (“PTMDB”) is required to concurrently close the sale of their 24% interest in PTNNT to PTAMI, which is contingent on the restructuring of PTMDB loans. During the third quarter of 2016, the negotiations have progressed and as of September 30, 2016, it is the Company’s expectation that the sale of the shares of PTMDB will close. |
|
· |
The absence of any material adverse events. Material adverse events include (i) an event that causes significant interruption of mining or milling operations of PTNNT for three months or longer, (ii) laws or regulations that prevent PTNNT from exporting its production outside of Indonesia for three months or longer, (iii) the revocation or termination of PTNNT’s mineral rights and mining concessions with the Republic of Indonesia and (iv) any revocation, termination or suspension of PTNNT’s export license. As of September 30, 2016, no material adverse events have occurred. |
|
· |
The satisfaction or waiver of the conditions precedent in other transaction and finance-related agreements. The sale of the PTIMI’s 2.2% stake in PTNNT is expected to be completed without further complications. |
The following conditions precedent, outstanding as of June 30, 2016, were substantially resolved during the third quarter of 2016:
|
· |
Obtaining required Government approvals. During the third quarter, the Government of Indonesia Ministry of Energy and Mineral Resources and Investment Coordinating Board approved the sale of PTNNT shares to PTAMI as required under the Sale and Purchase Agreement. |
|
· |
Obtaining approval of PTNNT shareholders. PTNNT shareholders were required to approve the transfer of shares in PTNNT to PTAMI and to appoint directors nominated by PTAMI. Shareholder approval was obtained and directors were nominated by PTAMI on September 30, 2016, satisfying this condition. |
|
· |
Resolution of certain tax matters pertaining to PTNNT shareholder PTPI. Prior to the third quarter of 2016, the shareholders of PTPI refused to engage with the Company to negotiate a resolution to the tax issues associated with their interest in PTNNT. These matters have since been substantially resolved. While some minor items remain outstanding related to the PTPI tax issue, the Company believes that those issues are within the control of the Company and can be resolved prior to closing. |
As described above, certain closing conditions remain outstanding and while the Company expects it is probable that those conditions will be successfully satisfied and the transaction will close in the fourth quarter of 2016, some of the remaining closing conditions are outside the control of the Company, and if not satisfied could result in the sale of PTNNT not being completed.
Based on the agreement to sell the economic interest in PTNNT, the Company evaluated the criteria under ASC 360 for classifying an asset as held for sale and concluded that as of September 30, 2016, PTNNT meets the criteria and has been presented as a discontinued operation. The Batu Hijau mine was previously included in the Asia Pacific operating segment. Newmont consolidates PTNNT as the primary beneficiary in the variable interest entity.
As a result of classifying PTNNT as held for sale as of September 30, 2016, and in accordance with ASC 360, the Company compared the estimated fair value of the PTNNT disposal group to its carrying value and determined that the carrying value exceeded the fair value. Consequently the Company recorded a charge to Loss on classification as held for sale of $577 for the quarter ended September 30, 2016. The estimated fair value used in the determination of the Loss on classification as held for sale was determined using the estimated gross cash proceeds of $920, less selling costs and certain contingent payments deemed to be derivatives. The selling costs and estimated value of the derivatives are not expected to be material.
Net income (loss) from discontinued operations, net of tax in the Condensed Consolidated Statements of Operations that relates to Batu Hijau consists of the following:
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
||||||||
|
|
|
September 30, |
|
September 30, |
|
||||||||
|
|
|
2016 |
|
2015 |
|
2016 |
|
2015 |
|
||||
|
Sales |
|
$ |
469 |
|
$ |
473 |
|
$ |
1,408 |
|
$ |
1,280 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs and expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs applicable to sales (1) |
|
|
184 |
|
|
220 |
|
|
571 |
|
|
589 |
|
|
Depreciation and amortization |
|
|
36 |
|
|
39 |
|
|
115 |
|
|
104 |
|
|
Reclamation and remediation |
|
|
4 |
|
|
3 |
|
|
13 |
|
|
9 |
|
|
Advanced projects, research and development |
|
|
1 |
|
|
1 |
|
|
2 |
|
|
6 |
|
|
General and administrative |
|
|
2 |
|
|
1 |
|
|
8 |
|
|
5 |
|
|
Other expense (income), net |
|
|
(1) |
|
|
3 |
|
|
2 |
|
|
9 |
|
|
|
|
|
226 |
|
|
267 |
|
|
711 |
|
|
722 |
|
|
Interest expense, net |
|
|
(5) |
|
|
(7) |
|
|
(15) |
|
|
(22) |
|
|
Income (loss) before income and mining tax and other items |
|
|
238 |
|
|
199 |
|
|
682 |
|
|
536 |
|
|
Income and mining tax benefit (expense) |
|
|
(90) |
|
|
(90) |
|
|
(258) |
|
|
(194) |
|
|
Net income (loss) from discontinued operations |
|
|
148 |
|
|
109 |
|
|
424 |
|
|
342 |
|
|
Loss on classification as held for sale, net of tax |
|
|
(577) |
|
|
— |
|
|
(577) |
|
|
— |
|
|
|
|
|
(429) |
|
|
109 |
|
|
(153) |
|
|
342 |
|
|
Net loss (income) attributable to noncontrolling interests, net of tax |
|
|
(79) |
|
|
(66) |
|
|
(229) |
|
|
(177) |
|
|
Net income (loss) from discontinued operations attributable to Newmont stockholders |
|
$ |
(508) |
|
$ |
43 |
|
$ |
(382) |
|
$ |
165 |
|
|
(1) |
Excludes Depreciation and amortization and Reclamation and remediation. |
The consolidated statements of comprehensive income (loss) were not impacted by discontinued operations as PTNNT did not have any other comprehensive income (loss).
Cash flows from Batu Hijau consist of the following:
|
|
|
Nine Months Ended |
|
||||
|
|
|
September 30, |
|
||||
|
|
|
2016 |
|
2015 |
|
||
|
Net cash provided by operating activities |
|
$ |
834 |
|
$ |
578 |
|
|
Net cash used in investing activities |
|
|
(41) |
|
|
(52) |
|
|
Net cash used in financing activities |
|
|
(319) |
|
|
(164) |
|
|
Increase in cash and equivalents in assets held for sale |
|
$ |
474 |
|
$ |
362 |
|
The carrying amounts of Batu Hijau’s (i) major classes of assets and liabilities, which are presented as held for sale, and (ii) non-controlling interests in the Condensed Consolidated Balance Sheets, are as follows:
|
|
|
At September 30, |
|
At December 31, |
|
||
|
|
|
2016 |
|
2015 |
|
||
|
Assets |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
893 |
|
$ |
419 |
|
|
Trade receivables |
|
|
95 |
|
|
179 |
|
|
Inventories |
|
|
170 |
|
|
149 |
|
|
Property, plant and mine development, net |
|
|
994 |
|
|
— |
|
|
Stockpiles and ore on leach pads |
|
|
1,114 |
|
|
114 |
|
|
Other current assets (1) |
|
|
435 |
|
|
99 |
|
|
|
|
|
3,701 |
|
|
960 |
|
|
Loss recognized on classification as held for sale |
|
|
(577) |
|
|
— |
|
|
Current assets held for sale |
|
$ |
3,124 |
|
$ |
960 |
|
|
|
|
|
|
|
|
|
|
|
Property, plant and mine development, net |
|
$ |
— |
|
$ |
1,093 |
|
|
Stockpiles and ore on leach pads |
|
|
— |
|
|
1,104 |
|
|
Other non-current assets |
|
|
— |
|
|
285 |
|
|
Non-current assets held for sale |
|
$ |
— |
|
$ |
2,482 |
|
|
|
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
|
|
Debt |
|
$ |
1 |
|
$ |
140 |
|
|
Accounts payable |
|
|
43 |
|
|
81 |
|
|
Employee-related benefits |
|
|
49 |
|
|
15 |
|
|
Income and mining taxes payable |
|
|
97 |
|
|
— |
|
|
Reclamation and remediation liabilities |
|
|
261 |
|
|
— |
|
|
Deferred income tax liabilities |
|
|
385 |
|
|
— |
|
|
Other current liabilities |
|
|
38 |
|
|
53 |
|
|
Current liabilities held for sale |
|
$ |
874 |
|
$ |
289 |
|
|
|
|
|
|
|
|
|
|
|
Debt |
|
$ |
— |
|
$ |
187 |
|
|
Reclamation and remediation liabilities |
|
|
— |
|
|
245 |
|
|
Deferred income tax liabilities |
|
|
— |
|
|
296 |
|
|
Employee-related benefits |
|
|
— |
|
|
28 |
|
|
Non-current liabilities held for sale |
|
$ |
— |
|
$ |
756 |
|
|
|
|
|
|
|
|
|
|
|
Noncontrolling interests |
|
$ |
1,345 |
|
$ |
1,135 |
|
|
(1) |
Other current assets include income tax receivables, other accounts receivable, prepaid assets, restricted assets and other current assets. In addition, there was $29 and $15 in Other current assets for settling reclamation obligations at September 30, 2016 and December 31, 2015, respectively. |
During the second quarter and third quarter, the Company paid $140 and $190, respectively, extinguishing the PTNNT revolving credit facility.
The Holt Royalty Obligation
Discontinued operations include a retained royalty obligation (“Holt”) to Holloway Mining Company. Holloway Mining Company, which owned the Holt-McDermott property, was sold to St. Andrew Goldfields Ltd. (“St. Andrew”) in 2006. In January 2016, St. Andrew was acquired by Kirkland Lake Gold Inc. In 2009, the Superior Court issued a decision finding Newmont Canada Corporation (“Newmont Canada”) liable for a sliding scale royalty on production from the Holt property, which Newmont Canada appealed. In May 2011, the Ontario Court of Appeal upheld the Superior Court ruling finding Newmont liable for the sliding scale royalty, which equals 0.013% of net smelter returns multiplied by the quarterly average gold price, minus a 0.013% of net smelter returns. There is no cap on the sliding scale royalty and it will increase or decrease with changes in gold price, discount rate and gold production scenarios. At September 30, 2016 and December 31, 2015, the estimated fair value of the Holt sliding scale royalty was $225 and $129, respectively. Changes to the estimated fair value resulting from periodic revaluations are recorded to Net income (loss) from discontinued operations, net of tax. During the three and nine months ended September 30, 2016, the Company recorded a loss of $19 (net of a tax benefit of $9) and a loss of $72 (net of a tax benefit of $32), respectively. During the three and nine months ended September 30, 2015, the Company recorded a gain of $17 (net of tax expense of $7) and a gain of $34 (net of tax expense of $15), respectively. During the nine months ended September 30, 2016 and 2015, the Company paid $8 and $9, respectively, related to the royalty.
|
|||
NOTE 4 BUSINESS ACQUISITION
On June 8, 2015, the Company announced an agreement with AngloGold Ashanti Limited to acquire 100% ownership in the Cripple Creek & Victor (“CC&V”) gold mining business in Colorado. CC&V is a surface mine with heap leach operations that provides ore to a crusher and leaching facilities. During 2015, the Company received $675 in net proceeds from a common stock issuance. Newmont used the proceeds, supplemented with cash from the Company’s balance sheet, to fund the acquisition. On August 3, 2015, the Company completed the acquisition of CC&V for $821, plus a 2.5% net smelter return royalty on future gold production from underground ore which had no fair value at the acquisition date. In connection with the acquisition, the Company incurred acquisition costs of $0 and $3, for the three and nine months ended September 30, 2016, which were recorded in Other expense, net. The acquisition is not material to the Company's results of operations, individually or in the aggregate; as a result, no pro forma financial information is provided.
During the second quarter of 2016, the final valuation of acquired assets and liabilities assumed was completed. There were no adjustments to the purchase price allocation since December 31, 2015. For further discussion of the CC&V acquisition, refer to Note 3 to the Consolidated Financial Statements for the year ended December 31, 2015 filed February 17, 2016 on Form 10-K.
|
|||
NOTE 5 SEGMENT INFORMATION
The Company has organized its operations into four geographic regions. The geographic regions include North America, South America, Asia Pacific and Africa and represent the Company’s operating segments. The results of these operating segments are reviewed by the Company’s chief operating decision maker to make decisions about resources to be allocated to the segments and assess their performance. As a result, these operating segments represent the Company’s reportable segments. Notwithstanding this structure, the Company internally reports information on a mine-by-mine basis for each mining operation and has chosen to disclose this information on the following tables. Income (loss) before income and mining tax and other items from reportable segments does not reflect general corporate expenses, interest (except project-specific interest) or income and mining taxes. Intercompany revenue and expense amounts have been eliminated within each segment in order to report on the basis that management uses internally for evaluating segment performance. Newmont’s business activities that are not considered operating segments are included in Corporate and Other. Although they are not required to be included in this footnote, they are provided for reconciliation purposes.
Segment results for the prior periods have been retrospectively revised to reflect the following changes:
|
· |
In the first quarter of 2016, Merian was moved from Corporate and Other to the South America reportable segment as a result of the mine being included in the operating results and resource allocation of the South America segment. |
|
· |
In the second quarter of 2016, Long Canyon was moved from Other North America to its own line item to reflect progression of the project and how it is being reported internally. |
|
· |
In the third quarter of 2016, the Company concluded that Batu Hijau meets the criteria to be treated as held for sale. Batu Hijau has been removed from the Asia Pacific region and is presented as a discontinued operation in our Condensed Consolidated Financial Statements. For additional information regarding our discontinued operations, see Note 3. |
Unless otherwise noted, we present only the reportable segments of our continuing operations in the tables below. The financial information relating to the Company’s segments is as follows:
|
|
|
|
|
|
|
|
|
|
|
|
Advanced |
|
Income (Loss) |
|
|
|
||
|
|
|
|
|
|
Costs |
|
Depreciation |
|
Projects, Research |
|
before Income |
|
|
|
||||
|
|
|
|
|
|
Applicable |
|
and |
|
and Development |
|
and Mining Tax |
|
Capital |
|||||
|
|
|
Sales |
|
to Sales |
|
Amortization |
|
and Exploration |
|
and Other Items |
|
Expenditures(1) |
||||||
|
Three Months Ended September 30, 2016 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Carlin |
|
$ |
362 |
|
$ |
212 |
|
$ |
51 |
|
$ |
7 |
|
$ |
91 |
|
$ |
37 |
|
Phoenix: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gold |
|
|
61 |
|
|
30 |
|
|
10 |
|
|
|
|
|
|
|
|
|
|
Copper |
|
|
20 |
|
|
32 |
|
|
8 |
|
|
|
|
|
|
|
|
|
|
Total Phoenix |
|
|
81 |
|
|
62 |
|
|
18 |
|
|
— |
|
|
(2) |
|
|
8 |
|
Twin Creeks |
|
|
129 |
|
|
52 |
|
|
10 |
|
|
2 |
|
|
64 |
|
|
9 |
|
Long Canyon |
|
|
— |
|
|
— |
|
|
— |
|
|
4 |
|
|
(4) |
|
|
28 |
|
CC&V |
|
|
152 |
|
|
65 |
|
|
32 |
|
|
3 |
|
|
50 |
|
|
13 |
|
Other North America |
|
|
— |
|
|
— |
|
|
1 |
|
|
3 |
|
|
2 |
|
|
1 |
|
North America |
|
|
724 |
|
|
391 |
|
|
112 |
|
|
19 |
|
|
201 |
|
|
96 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Yanacocha |
|
|
195 |
|
|
148 |
|
|
92 |
|
|
6 |
|
|
(66) |
|
|
26 |
|
Merian |
|
|
— |
|
|
— |
|
|
— |
|
|
7 |
|
|
(8) |
|
|
60 |
|
Other South America |
|
|
— |
|
|
— |
|
|
3 |
|
|
8 |
|
|
(13) |
|
|
— |
|
South America |
|
|
195 |
|
|
148 |
|
|
95 |
|
|
21 |
|
|
(87) |
|
|
86 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Boddington: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gold |
|
|
287 |
|
|
139 |
|
|
30 |
|
|
|
|
|
|
|
|
|
|
Copper |
|
|
43 |
|
|
33 |
|
|
6 |
|
|
|
|
|
|
|
|
|
|
Total Boddington |
|
|
330 |
|
|
172 |
|
|
36 |
|
|
— |
|
|
106 |
|
|
17 |
|
Tanami |
|
|
151 |
|
|
57 |
|
|
20 |
|
|
4 |
|
|
70 |
|
|
36 |
|
Kalgoorlie |
|
|
120 |
|
|
57 |
|
|
5 |
|
|
1 |
|
|
56 |
|
|
5 |
|
Other Asia Pacific |
|
|
— |
|
|
— |
|
|
1 |
|
|
2 |
|
|
(13) |
|
|
— |
|
Asia Pacific |
|
|
601 |
|
|
286 |
|
|
62 |
|
|
7 |
|
|
219 |
|
|
58 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ahafo |
|
|
115 |
|
|
95 |
|
|
30 |
|
|
8 |
|
|
(20) |
|
|
22 |
|
Akyem |
|
|
156 |
|
|
63 |
|
|
32 |
|
|
4 |
|
|
56 |
|
|
5 |
|
Other Africa |
|
|
— |
|
|
— |
|
|
1 |
|
|
1 |
|
|
(3) |
|
|
— |
|
Africa |
|
|
271 |
|
|
158 |
|
|
63 |
|
|
13 |
|
|
33 |
|
|
27 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate and Other |
|
|
— |
|
|
— |
|
|
3 |
|
|
13 |
|
|
(143) |
|
|
2 |
|
Consolidated |
|
$ |
1,791 |
|
$ |
983 |
|
$ |
335 |
|
$ |
73 |
|
$ |
223 |
|
$ |
269 |
|
(1) |
There was no change to accrued capital expenditures; consolidated capital expenditures on a cash basis were $269. |
|
|
|
|
|
|
|
|
|
|
|
|
Advanced |
|
Income (Loss) |
|
|
|
||
|
|
|
|
|
|
Costs |
|
Depreciation |
|
Projects, Research |
|
before Income |
|
|
|
||||
|
|
|
|
|
|
Applicable |
|
and |
|
and Development |
|
and Mining Tax |
|
Capital |
|||||
|
|
|
Sales |
|
to Sales |
|
Amortization |
|
and Exploration |
|
and Other Items |
|
Expenditures(1) |
||||||
|
Three Months Ended September 30, 2015 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Carlin |
|
$ |
261 |
|
$ |
208 |
|
$ |
54 |
|
$ |
5 |
|
$ |
(9) |
|
$ |
74 |
|
Phoenix: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gold |
|
|
63 |
|
|
48 |
|
|
13 |
|
|
|
|
|
|
|
|
|
|
Copper |
|
|
30 |
|
|
27 |
|
|
6 |
|
|
|
|
|
|
|
|
|
|
Total Phoenix |
|
|
93 |
|
|
75 |
|
|
19 |
|
|
1 |
|
|
(4) |
|
|
5 |
|
Twin Creeks |
|
|
134 |
|
|
67 |
|
|
13 |
|
|
2 |
|
|
52 |
|
|
8 |
|
Long Canyon |
|
|
— |
|
|
— |
|
|
— |
|
|
7 |
|
|
(7) |
|
|
32 |
|
CC&V |
|
|
38 |
|
|
10 |
|
|
6 |
|
|
1 |
|
|
20 |
|
|
27 |
|
Other North America |
|
|
— |
|
|
— |
|
|
1 |
|
|
— |
|
|
9 |
|
|
1 |
|
North America |
|
|
526 |
|
|
360 |
|
|
93 |
|
|
16 |
|
|
61 |
|
|
147 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Yanacocha |
|
|
288 |
|
|
160 |
|
|
88 |
|
|
9 |
|
|
13 |
|
|
28 |
|
Merian |
|
|
— |
|
|
— |
|
|
— |
|
|
3 |
|
|
(2) |
|
|
90 |
|
Other South America |
|
|
— |
|
|
— |
|
|
3 |
|
|
10 |
|
|
(13) |
|
|
— |
|
South America |
|
|
288 |
|
|
160 |
|
|
91 |
|
|
22 |
|
|
(2) |
|
|
118 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Boddington: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gold |
|
|
224 |
|
|
131 |
|
|
27 |
|
|
|
|
|
|
|
|
|
|
Copper |
|
|
36 |
|
|
33 |
|
|
6 |
|
|
|
|
|
|
|
|
|
|
Total Boddington |
|
|
260 |
|
|
164 |
|
|
33 |
|
|
— |
|
|
68 |
|
|
13 |
|
Tanami |
|
|
141 |
|
|
55 |
|
|
22 |
|
|
2 |
|
|
66 |
|
|
22 |
|
Waihi (2) |
|
|
32 |
|
|
12 |
|
|
4 |
|
|
1 |
|
|
14 |
|
|
1 |
|
Kalgoorlie |
|
|
95 |
|
|
68 |
|
|
5 |
|
|
1 |
|
|
24 |
|
|
3 |
|
Other Asia Pacific |
|
|
— |
|
|
— |
|
|
4 |
|
|
1 |
|
|
(10) |
|
|
1 |
|
Asia Pacific |
|
|
528 |
|
|
299 |
|
|
68 |
|
|
5 |
|
|
162 |
|
|
40 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ahafo |
|
|
89 |
|
|
52 |
|
|
11 |
|
|
5 |
|
|
22 |
|
|
21 |
|
Akyem |
|
|
129 |
|
|
54 |
|
|
24 |
|
|
2 |
|
|
51 |
|
|
12 |
|
Other Africa |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(7) |
|
|
— |
|
Africa |
|
|
218 |
|
|
106 |
|
|
35 |
|
|
7 |
|
|
66 |
|
|
33 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate and Other |
|
|
— |
|
|
— |
|
|
5 |
|
|
15 |
|
|
(49) |
|
|
3 |
|
Consolidated |
|
$ |
1,560 |
|
$ |
925 |
|
$ |
292 |
|
$ |
65 |
|
$ |
238 |
|
$ |
341 |
|
(1) |
Includes an increase in accrued capital expenditures of $25; consolidated capital expenditures on a cash basis were $316. |
|
(2) |
On October 29, 2015, the Company sold the Waihi mine. |
|
|
|
|
|
|
|
|
|
|
|
Advanced |
|
Income (Loss) |
|
|
|
|
|||
|
|
|
|
|
Costs |
|
Depreciation |
|
Projects, Research |
|
before Income |
|
|
|
||||||
|
|
|
|
|
|
Applicable |
|
and |
|
and Development |
|
and Mining Tax |
|
Capital |
|
|||||
|
|
|
Sales |
|
to Sales |
|
Amortization |
|
and Exploration |
|
and Other Items |
|
Expenditures(1) |
|
||||||
|
Nine Months Ended September 30, 2016 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Carlin |
|
$ |
864 |
|
$ |
585 |
|
$ |
143 |
|
$ |
14 |
|
$ |
115 |
|
$ |
116 |
|
|
Phoenix: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gold |
|
|
187 |
|
|
118 |
|
|
37 |
|
|
|
|
|
|
|
|
|
|
|
Copper |
|
|
63 |
|
|
76 |
|
|
20 |
|
|
|
|
|
|
|
|
|
|
|
Total Phoenix |
|
|
250 |
|
|
194 |
|
|
57 |
|
|
1 |
|
|
(10) |
|
|
15 |
|
|
Twin Creeks |
|
|
432 |
|
|
170 |
|
|
36 |
|
|
6 |
|
|
217 |
|
|
29 |
|
|
Long Canyon |
|
|
— |
|
|
— |
|
|
— |
|
|
17 |
|
|
(17) |
|
|
101 |
|
|
CC&V |
|
|
361 |
|
|
156 |
|
|
78 |
|
|
7 |
|
|
115 |
|
|
49 |
|
|
Other North America |
|
|
— |
|
|
— |
|
|
1 |
|
|
9 |
|
|
(7) |
|
|
3 |
|
|
North America |
|
|
1,907 |
|
|
1,105 |
|
|
315 |
|
|
54 |
|
|
413 |
|
|
313 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Yanacocha |
|
|
600 |
|
|
396 |
|
|
220 |
|
|
26 |
|
|
(96) |
|
|
64 |
|
|
Merian |
|
|
— |
|
|
— |
|
|
1 |
|
|
21 |
|
|
(22) |
|
|
202 |
|
|
Other South America |
|
|
— |
|
|
— |
|
|
10 |
|
|
24 |
|
|
(38) |
|
|
— |
|
|
South America |
|
|
600 |
|
|
396 |
|
|
231 |
|
|
71 |
|
|
(156) |
|
|
266 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Boddington: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gold |
|
|
741 |
|
|
391 |
|
|
82 |
|
|
|
|
|
|
|
|
|
|
|
Copper |
|
|
108 |
|
|
89 |
|
|
17 |
|
|
|
|
|
|
|
|
|
|
|
Total Boddington |
|
|
849 |
|
|
480 |
|
|
99 |
|
|
— |
|
|
245 |
|
|
40 |
|
|
Tanami |
|
|
450 |
|
|
180 |
|
|
62 |
|
|
10 |
|
|
197 |
|
|
93 |
|
|
Kalgoorlie |
|
|
348 |
|
|
189 |
|
|
14 |
|
|
4 |
|
|
138 |
|
|
13 |
|
|
Other Asia Pacific |
|
|
— |
|
|
— |
|
|
7 |
|
|
5 |
|
|
(28) |
|
|
— |
|
|
Asia Pacific |
|
|
1,647 |
|
|
849 |
|
|
182 |
|
|
19 |
|
|
552 |
|
|
146 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ahafo |
|
|
331 |
|
|
212 |
|
|
62 |
|
|
20 |
|
|
30 |
|
|
61 |
|
|
Akyem |
|
|
437 |
|
|
174 |
|
|
93 |
|
|
8 |
|
|
158 |
|
|
15 |
|
|
Other Africa |
|
|
— |
|
|
— |
|
|
1 |
|
|
2 |
|
|
(7) |
|
|
— |
|
|
Africa |
|
|
768 |
|
|
386 |
|
|
156 |
|
|
30 |
|
|
181 |
|
|
76 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate and Other |
|
|
— |
|
|
— |
|
|
8 |
|
|
38 |
|
|
(318) |
|
|
6 |
|
|
Consolidated |
|
$ |
4,922 |
|
$ |
2,736 |
|
$ |
892 |
|
$ |
212 |
|
$ |
672 |
|
$ |
807 |
|
|
(1) |
Includes a decrease in accrued capital expenditures of $25; consolidated capital expenditures on a cash basis were $832. |
|
|
|
|
|
|
|
|
|
|
|
Advanced |
|
Income (Loss) |
|
|
|
|
|||
|
|
|
|
|
Costs |
|
Depreciation |
|
Projects, Research |
|
before Income |
|
|
|
||||||
|
|
|
|
|
|
Applicable |
|
and |
|
and Development |
|
and Mining Tax |
|
Capital |
|
|||||
|
|
|
Sales |
|
to Sales |
|
Amortization |
|
and Exploration |
|
and Other Items |
|
Expenditures(1) |
|
||||||
|
Nine Months Ended September 30, 2015 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Carlin |
|
$ |
780 |
|
$ |
573 |
|
$ |
145 |
|
$ |
12 |
|
$ |
41 |
|
$ |
189 |
|
|
Phoenix: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gold |
|
|
174 |
|
|
121 |
|
|
31 |
|
|
|
|
|
|
|
|
|
|
|
Copper |
|
|
88 |
|
|
69 |
|
|
15 |
|
|
|
|
|
|
|
|
|
|
|
Total Phoenix |
|
|
262 |
|
|
190 |
|
|
46 |
|
|
3 |
|
|
13 |
|
|
20 |
|
|
Twin Creeks |
|
|
433 |
|
|
190 |
|
|
38 |
|
|
7 |
|
|
194 |
|
|
39 |
|
|
Long Canyon |
|
|
— |
|
|
— |
|
|
— |
|
|
13 |
|
|
(13) |
|
|
56 |
|
|
CC&V |
|
|
38 |
|
|
10 |
|
|
6 |
|
|
1 |
|
|
20 |
|
|
27 |
|
|
Other North America |
|
|
— |
|
|
— |
|
|
1 |
|
|
6 |
|
|
8 |
|
|
3 |
|
|
North America |
|
|
1,513 |
|
|
963 |
|
|
236 |
|
|
42 |
|
|
263 |
|
|
334 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Yanacocha |
|
|
831 |
|
|
405 |
|
|
225 |
|
|
22 |
|
|
127 |
|
|
62 |
|
|
Merian |
|
|
— |
|
|
— |
|
|
— |
|
|
8 |
|
|
(8) |
|
|
254 |
|
|
Other South America |
|
|
— |
|
|
— |
|
|
8 |
|
|
32 |
|
|
(42) |
|
|
— |
|
|
South America |
|
|
831 |
|
|
405 |
|
|
233 |
|
|
62 |
|
|
77 |
|
|
316 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Boddington: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gold |
|
|
665 |
|
|
411 |
|
|
81 |
|
|
|
|
|
|
|
|
|
|
|
Copper |
|
|
124 |
|
|
101 |
|
|
18 |
|
|
|
|
|
|
|
|
|
|
|
Total Boddington |
|
|
789 |
|
|
512 |
|
|
99 |
|
|
1 |
|
|
177 |
|
|
42 |
|
|
Tanami |
|
|
399 |
|
|
172 |
|
|
63 |
|
|
5 |
|
|
164 |
|
|
68 |
|
|
Waihi (2) |
|
|
121 |
|
|
49 |
|
|
12 |
|
|
3 |
|
|
53 |
|
|
11 |
|
|
Kalgoorlie |
|
|
269 |
|
|
206 |
|
|
16 |
|
|
2 |
|
|
48 |
|
|
14 |
|
|
Other Asia Pacific |
|
|
— |
|
|
— |
|
|
12 |
|
|
3 |
|
|
(31) |
|
|
3 |
|
|
Asia Pacific |
|
|
1,578 |
|
|
939 |
|
|
202 |
|
|
14 |
|
|
411 |
|
|
138 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ahafo |
|
|
297 |
|
|
151 |
|
|
39 |
|
|
16 |
|
|
88 |
|
|
66 |
|
|
Akyem |
|
|
414 |
|
|
151 |
|
|
70 |
|
|
6 |
|
|
185 |
|
|
31 |
|
|
Other Africa |
|
|
— |
|
|
— |
|
|
— |
|
|
2 |
|
|
(10) |
|
|
— |
|
|
Africa |
|
|
711 |
|
|
302 |
|
|
109 |
|
|
24 |
|
|
263 |
|
|
97 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate and Other |
|
|
— |
|
|
— |
|
|
12 |
|
|
60 |
|
|
(392) |
|
|
33 |
|
|
Consolidated |
|
$ |
4,633 |
|
$ |
2,609 |
|
$ |
792 |
|
$ |
202 |
|
$ |
622 |
|
$ |
918 |
|
|
(1) |
Includes an increase in accrued capital expenditures of $29; consolidated capital expenditures on a cash basis were $889. |
|
(2) |
On October 29, 2015, the Company sold the Waihi mine. |
|
|||
NOTE 6 RECLAMATION AND REMEDIATION
The Company’s mining and exploration activities are subject to various domestic and international laws and regulations governing the protection of the environment. These laws and regulations are continually changing and are generally becoming more restrictive. The Company conducts its operations to protect public health and the environment and believes its operations are in compliance with applicable laws and regulations in all material respects. The Company has made, and expects to make in the future, expenditures to comply with such laws and regulations, but cannot predict the full amount of such future expenditures. Estimated future reclamation and remediation costs are based principally on current legal and regulatory requirements.
The Company’s Reclamation and remediation expense consisted of:
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
||||||||
|
|
|
September 30, |
|
September 30, |
|
||||||||
|
|
|
2016 |
|
2015 |
|
2016 |
|
2015 |
|
||||
|
Reclamation Accretion |
|
$ |
19 |
|
$ |
19 |
|
$ |
57 |
|
$ |
55 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Remediation |
|
|
5 |
|
|
2 |
|
|
7 |
|
|
7 |
|
|
Remediation Accretion |
|
|
1 |
|
|
1 |
|
|
3 |
|
|
3 |
|
|
|
|
|
6 |
|
|
3 |
|
|
10 |
|
|
10 |
|
|
|
|
$ |
25 |
|
$ |
22 |
|
$ |
67 |
|
$ |
65 |
|
The following are reconciliations of Reclamation and remediation liabilities:
|
|
|
2016 |
|
2015 |
|
||
|
Reclamation balance at January 1, |
|
$ |
1,300 |
|
$ |
1,303 |
|
|
Additions, changes in estimates and other |
|
|
6 |
|
|
(10) |
|
|
Acquisitions and divestitures |
|
|
— |
|
|
80 |
|
|
Payments and other |
|
|
(14) |
|
|
(15) |
|
|
Accretion expense |
|
|
57 |
|
|
55 |
|
|
Reclamation balance at September 30, |
|
$ |
1,349 |
|
$ |
1,413 |
|
|
|
|
2016 |
|
2015 |
|
||
|
Remediation balance at January 1, |
|
$ |
318 |
|
$ |
193 |
|
|
Payments and other |
|
|
(21) |
|
|
(33) |
|
|
Accretion expense |
|
|
3 |
|
|
3 |
|
|
Remediation balance at September 30, |
|
$ |
300 |
|
$ |
163 |
|
The current portion of reclamation liabilities included in Other current liabilities was $28 and $29 at September 30, 2016 and December 31, 2015, respectively. The current portion of remediation liabilities included in Other current liabilities was $34 at September 30, 2016 and December 31, 2015. At September 30, 2016 and December 31, 2015, $1,349 and $1,300, respectively, were accrued for reclamation obligations relating to operating properties. In addition, the Company is involved in several matters concerning environmental obligations associated with former, primarily historic, mining activities. Generally, these matters concern developing and implementing remediation plans at the various sites involved. At September 30, 2016 and December 31, 2015, $300 and $318, respectively, were accrued for such environmental remediation obligations.
Non-current restricted assets held for purposes of settling reclamation and remediation obligations were $66 and $65 at September 30, 2016 and December 31, 2015, respectively. Of the amount at September 30, 2016, $43 is related to the Midnite Mine in Washington State, $14 is related to the Ahafo and Akyem mines in Ghana, Africa and $9 is related to the Con mine in Yellowknife, NWT, Canada. Of the amount at December 31, 2015, $43 is related to the Midnite Mine in Washington State, $13 is related to the Ahafo and Akyem mines in Ghana, Africa and $9 is related to the Con mine in Yellowknife, NWT, Canada.
Included in Investments at September 30, 2016 and December 31, 2015, was $21 and $20, respectively, of non-current equity securities, which are legally pledged for purposes of settling reclamation and remediation obligations related to the San Jose Reservoir in Yanacocha and for various locations in Nevada.
Refer to Note 25 for further discussion of reclamation and remediation matters.
|
|||
NOTE 7 OTHER EXPENSE, NET
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
||||||||
|
|
|
September 30, |
|
September 30, |
|
||||||||
|
|
|
2016 |
|
2015 |
|
2016 |
|
2015 |
|
||||
|
Restructuring and other |
|
$ |
7 |
|
$ |
12 |
|
$ |
26 |
|
$ |
26 |
|
|
Acquisition costs |
|
|
9 |
|
|
7 |
|
|
11 |
|
|
15 |
|
|
Write-downs |
|
|
— |
|
|
3 |
|
|
4 |
|
|
6 |
|
|
Western Australia power plant |
|
|
1 |
|
|
2 |
|
|
3 |
|
|
5 |
|
|
Other |
|
|
4 |
|
|
3 |
|
|
10 |
|
|
21 |
|
|
|
|
$ |
21 |
|
$ |
27 |
|
$ |
54 |
|
$ |
73 |
|
|
|||
NOTE 8 OTHER INCOME, NET
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
||||||||
|
|
|
September 30, |
|
September 30, |
|
||||||||
|
|
|
2016 |
|
2015 |
|
2016 |
|
2015 |
|
||||
|
Gain (loss) on asset and investment sales, net |
|
$ |
5 |
|
$ |
66 |
|
$ |
109 |
|
$ |
109 |
|
|
Foreign currency exchange, net |
|
|
(9) |
|
|
25 |
|
|
(29) |
|
|
36 |
|
|
Gain on deconsolidation of TMAC |
|
|
— |
|
|
76 |
|
|
— |
|
|
76 |
|
|
Impairment of investments |
|
|
— |
|
|
(29) |
|
|
— |
|
|
(102) |
|
|
Other |
|
|
— |
|
|
4 |
|
|
13 |
|
|
17 |
|
|
|
|
$ |
(4) |
|
$ |
142 |
|
$ |
93 |
|
$ |
136 |
|
During the first quarter of 2016, the Company recorded a gain of $103 on the sale of its investment in Regis Resources Ltd.
During the third quarter of 2015, Newmont determined that TMAC should no longer be considered a variable interest entity. As a result, Newmont deconsolidated the assets, liabilities and non-controlling interest related to TMAC for a gain of $76. For further details regarding our investment in TMAC, see Note 16.
During the third quarter of 2015, the Company recorded a gain of $53 related to the sale of its 60.64% ownership interest in EGR.
|
|||
NOTE 9 INCOME AND MINING TAXES
The Company’s Income and mining tax expense (benefit) differed from the amounts computed by applying the U.S. statutory corporate income tax rate for the following reasons:
|
|
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
||||||||||||||||
|
|
|
2016 |
|
2015 |
|
2016 |
|
2015 |
|
||||||||||||
|
Income (loss) before income and mining tax and other items |
|
|
|
$ |
223 |
|
|
|
$ |
238 |
|
|
|
$ |
672 |
|
|
|
$ |
622 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax at statutory rate |
|
35 |
% |
$ |
78 |
|
35 |
% |
$ |
83 |
|
35 |
% |
$ |
235 |
|
35 |
% |
$ |
218 |
|
|
Reconciling items: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percentage depletion (1) |
|
(5) |
|
|
(11) |
|
(3) |
|
|
(8) |
|
(7) |
|
|
(47) |
|
(10) |
|
|
(61) |
|
|
Change in valuation allowance on deferred tax assets |
|
(2) |
|
|
(5) |
|
(17) |
|
|
(40) |
|
49 |
|
|
330 |
|
11 |
|
|
68 |
|
|
Mining and other taxes |
|
6 |
|
|
13 |
|
9 |
|
|
21 |
|
6 |
|
|
41 |
|
10 |
|
|
59 |
|
|
Tax impact on sale of assets |
|
— |
|
|
— |
|
3 |
|
|
8 |
|
(5) |
|
|
(35) |
|
1 |
|
|
8 |
|
|
U.S. tax effect of minority interest attributable to non-U.S. investees |
|
4 |
|
|
10 |
|
(1) |
|
|
(3) |
|
3 |
|
|
20 |
|
1 |
|
|
9 |
|
|
Other (1) |
|
2 |
|
|
5 |
|
— |
|
|
— |
|
2 |
|
|
11 |
|
— |
|
|
1 |
|
|
Income and mining tax expense |
|
40 |
% |
$ |
90 |
|
26 |
% |
$ |
61 |
|
83 |
% |
$ |
555 |
|
48 |
% |
$ |
302 |
|
|
(1) |
Includes the reduction to percentage depletion and the domestic production deduction from the filing of the 2015 tax return during the second quarter of 2016. |
A valuation allowance is provided for those deferred tax assets for which it is more likely than not that the related benefits will not be realized. In determining the amount of the valuation allowance, each quarter, the Company considers future reversals of existing taxable temporary differences, estimated future taxable income and taxable income in prior carryback year(s), as well as feasible tax planning strategies in each jurisdiction to determine if the deferred tax assets are realizable. If it is determined that the Company will not realize all or a portion of its deferred tax assets, it will place or increase a valuation allowance. Conversely, if determined that it will ultimately be able to realize all or a portion of the related benefits for which a valuation allowance has been provided, all or a portion of the related valuation allowance will be reduced. There are a number of risk factors that could impact the Company’s ability to realize the deferred tax assets.
The Company operates in numerous countries and accordingly it is subject to, and pays taxes under, the various tax regimes in the countries in which it operates. Some of these tax regimes are defined by contractual agreements with the local government, and others are defined by the general corporate income tax laws of the country. The Company has historically filed, and continues to file, all required income tax returns and pay the income taxes determined to be due. The tax rules and regulations in many countries are complex and subject to interpretation. From time to time, the Company is subject to an audit of its historic income tax filings and in connection with such audits, disputes can arise with the taxing authorities over the interpretation or application of certain rules to the Company’s business conducted within the country involved.
At September 30, 2016, the Company’s gross unrecognized tax benefit, including interest and penalties, was $131 for uncertain income tax positions taken or expected to be taken on income tax returns. Of this, $79 represents the amount of unrecognized tax benefits that, if recognized, would affect the Company’s effective income tax rate.
During the second quarter of 2016, one of the Company’s Canadian subsidiaries received a tax and interest assessment from the Canadian Revenue Authority for $54 relating to a pre-acquisition transaction of Fronteer Gold Inc. and subsidiaries. The taxing authority is disputing the tax attribute that was created as part of the pre-acquisition transaction claimed on Fronteer’s tax return. Due to procedural requirements, the Company paid half of the assessment in the third quarter. The Company intends to vigorously defend its position through all processes available.
As a result of the statute of limitations that expire in the next 12 months in various jurisdictions and possible settlements of audit-related issues with taxing authorities in various jurisdictions, none of which are individually significant, the Company believes that it is reasonably possible that the total amount of its net unrecognized income tax benefits will decrease by approximately $25 to $30 in the next 12 months.
|
|||
NOTE 10 NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS FROM CONTINUING OPERATIONS
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
||||||||
|
|
|
September 30, |
|
September 30, |
|
||||||||
|
|
|
2016 |
|
2015 |
|
2016 |
|
2015 |
|
||||
|
Minera Yanacocha S.R.L. |
|
$ |
(32) |
|
$ |
— |
|
$ |
(56) |
|
$ |
23 |
|
|
Merian |
|
|
(2) |
|
|
— |
|
|
(6) |
|
|
— |
|
|
TMAC Resources Inc. |
|
|
— |
|
|
— |
|
|
— |
|
|
(13) |
|
|
Other |
|
|
— |
|
|
— |
|
|
— |
|
|
1 |
|
|
|
|
$ |
(34) |
|
$ |
— |
|
$ |
(62) |
|
$ |
11 |
|
Newmont has a 51.35% ownership interest in Minera Yanacocha S.R.L., with the remaining interests held by Compañia de Minas Buenaventura, S.A.A. (43.65%) and the International Finance Corporation (5%). Newmont consolidates Minera Yanacocha S.R.L. in its Condensed Consolidated Financial Statements due to a majority voting interest.
Newmont has a 29.20% ownership interest in TMAC Resources Inc. (“TMAC”), with the remaining interests held by TMAC management and various outside investors. Newmont’s retained investment in TMAC is accounted for as an equity method investment. Refer to Note 16 for additional information.
Newmont has a 75.0% economic interest in the development of the Merian project, with the remaining interests held by Staatsolie (a company wholly owned by the Republic of Suriname). Newmont consolidates the Merian project in its Condensed Consolidated Financial Statements as the primary beneficiary in the variable interest entity. Newmont consolidates the Merian project through Newmont Suriname, LLC (formerly known as Surgold), a company wholly owned by Newmont. The project began construction in August 2014 and reached commercial production on October 1, 2016.
According to the terms of the partnership agreement, Staatsolie will receive metal in kind for its 25% interest. Subsequent to September 30, 2016, Staatsolie and Newmont signed a letter of intent to amend the distribution model outlined in the partnership agreement which would allow Merian to sell 100% of the gold produced and make cash distributions in lieu of in kind distributions to Staatsolie.
The following summarizes the assets and liabilities, inclusive of deferred tax liabilities, of Merian (including noncontrolling interests).
|
|
|
At September 30, |
|
At December 31, |
|
||
|
|
|
2016 |
|
2015 |
|
||
|
Current assets: |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
18 |
|
$ |
16 |
|
|
Other current assets (1) |
|
|
57 |
|
|
23 |
|
|
|
|
|
75 |
|
|
39 |
|
|
Non-current assets: |
|
|
|
|
|
|
|
|
Property, plant and mine development, net |
|
|
753 |
|
|
564 |
|
|
Total assets |
|
$ |
828 |
|
$ |
603 |
|
|
|
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
|
Other current liabilities (2) |
|
$ |
40 |
|
$ |
35 |
|
|
|
|
|
40 |
|
|
35 |
|
|
Non-current liabilities: |
|
|
|
|
|
|
|
|
Reclamation and remediation liabilities |
|
|
12 |
|
|
8 |
|
|
Total liabilities |
|
$ |
52 |
|
$ |
43 |
|
|
(1) |
Other current assets include other accounts receivables, inventories, stockpiles and ore on leach pads, prepaid assets and other current assets. |
|
(2) |
Other current liabilities include employee-related benefits and other current liabilities. |
|
|||
NOTE 11 INCOME (LOSS) PER COMMON SHARE
Basic income (loss) per common share is computed by dividing income available to Newmont common stockholders by the weighted average number of common shares outstanding during the period. Diluted income (loss) per common share is computed similarly, except that weighted average common shares is increased to reflect all dilutive instruments, including employee stock awards and convertible debt instruments. The dilutive effects of Newmont’s dilutive securities are calculated using the treasury stock method and only those instruments that result in a reduction in income per share are included in the calculation.
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
||||||||
|
|
|
September 30, |
|
September 30, |
|
||||||||
|
|
|
2016 |
|
2015 |
|
2016 |
|
2015 |
|
||||
|
Net income (loss) attributable to Newmont stockholders: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing operations |
|
$ |
169 |
|
$ |
159 |
|
$ |
171 |
|
$ |
275 |
|
|
Discontinued operations |
|
|
(527) |
|
|
60 |
|
|
(454) |
|
|
199 |
|
|
|
|
$ |
(358) |
|
$ |
219 |
|
$ |
(283) |
|
$ |
474 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares (millions): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
531 |
|
|
529 |
|
|
530 |
|
|
511 |
|
|
Effect of employee stock-based awards |
|
|
2 |
|
|
1 |
|
|
2 |
|
|
1 |
|
|
Diluted |
|
|
533 |
|
|
530 |
|
|
532 |
|
|
512 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) per common share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing operations |
|
$ |
0.32 |
|
$ |
0.30 |
|
$ |
0.32 |
|
$ |
0.54 |
|
|
Discontinued operations |
|
|
(0.99) |
|
|
0.12 |
|
|
(0.85) |
|
|
0.39 |
|
|
|
|
$ |
(0.67) |
|
$ |
0.42 |
|
$ |
(0.53) |
|
$ |
0.93 |
|
|
Diluted: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing operations |
|
$ |
0.32 |
|
$ |
0.30 |
|
$ |
0.32 |
|
$ |
0.54 |
|
|
Discontinued operations |
|
|
(0.99) |
|
|
0.12 |
|
|
(0.85) |
|
|
0.39 |
|
|
|
|
$ |
(0.67) |
|
$ |
0.42 |
|
$ |
(0.53) |
|
$ |
0.93 |
|
Employee stock options to purchase 1 million and 2 million shares of common stock at weighted average exercise prices of $51 and $48 were outstanding at September 30, 2016 and 2015, respectively, but were not included in the computation of diluted weighted average common shares because their exercise prices exceeded the average price of the Company’s common stock for the respective periods presented.
Newmont is required to settle the principal amount of its 2017 Convertible Senior Note in cash and may elect to settle the remaining conversion premium (average share price in excess of the conversion price), if any, in cash, shares or a combination thereof. The effect of contingently convertible instruments on diluted earnings per share is calculated under the net share settlement method. The conversion price exceeded the Company’s share price for the periods presented; therefore, no additional shares were included in the computation of diluted weighted average common shares.
|
|||
NOTE 12 EMPLOYEE PENSION AND OTHER BENEFIT PLANS
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
||||||||
|
|
|
September 30, |
|
September 30, |
|
||||||||
|
|
|
2016 |
|
2015 |
|
2016 |
|
2015 |
|
||||
|
Pension benefit costs, net: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service cost |
|
$ |
6 |
|
$ |
7 |
|
$ |
21 |
|
$ |
22 |
|
|
Interest cost |
|
|
11 |
|
|
9 |
|
|
34 |
|
|
30 |
|
|
Expected return on plan assets |
|
|
(14) |
|
|
(15) |
|
|
(43) |
|
|
(44) |
|
|
Amortization, net |
|
|
6 |
|
|
6 |
|
|
18 |
|
|
20 |
|
|
Settlements |
|
|
4 |
|
|
3 |
|
|
4 |
|
|
3 |
|
|
|
|
$ |
13 |
|
$ |
10 |
|
$ |
34 |
|
$ |
31 |
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
||||||||
|
|
|
September 30, |
|
September 30, |
|
||||||||
|
|
|
2016 |
|
2015 |
|
2016 |
|
2015 |
|
||||
|
Other benefit costs, net: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service cost |
|
$ |
— |
|
$ |
— |
|
$ |
1 |
|
$ |
2 |
|
|
Interest cost |
|
|
1 |
|
|
1 |
|
|
3 |
|
|
4 |
|
|
Amortization, net |
|
|
(1) |
|
|
(1) |
|
|
(4) |
|
|
(1) |
|
|
|
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
5 |
|
|
|||
NOTE 13 STOCK-BASED COMPENSATION
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
||||||||
|
|
|
September 30, |
|
September 30, |
|
||||||||
|
|
|
2016 |
|
2015 |
|
2016 |
|
2015 |
|
||||
|
Stock-based compensation: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Performance leveraged stock units |
|
$ |
9 |
|
$ |
9 |
|
$ |
28 |
|
$ |
30 |
|
|
Restricted stock units |
|
|
7 |
|
|
7 |
|
|
22 |
|
|
23 |
|
|
Strategic stock units |
|
|
1 |
|
|
2 |
|
|
4 |
|
|
5 |
|
|
|
|
$ |
17 |
|
$ |
18 |
|
$ |
54 |
|
$ |
58 |
|
|
|||
NOTE 14 FAIR VALUE ACCOUNTING
Fair value accounting establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are described below:
Level 1Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities;
Level 2Quoted prices in markets that are not active, or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability; and
Level 3Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (supported by little or no market activity).
The following tables set forth the Company’s assets and liabilities measured at fair value on a recurring basis (at least annually) by level within the fair value hierarchy. As required by accounting guidance, assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement.
|
|
|
Fair Value at September 30, 2016 |
|
||||||||||
|
|
|
Total |
|
Level 1 |
|
Level 2 |
|
Level 3 |
|
||||
|
Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
2,099 |
|
$ |
2,099 |
|
$ |
— |
|
$ |
— |
|
|
Restricted assets (1) |
|
|
67 |
|
|
67 |
|
|
— |
|
|
— |
|
|
Marketable equity securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Extractive industries |
|
|
84 |
|
|
84 |
|
|
— |
|
|
— |
|
|
Other |
|
|
17 |
|
|
17 |
|
|
— |
|
|
— |
|
|
Marketable debt securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset backed commercial paper |
|
|
20 |
|
|
— |
|
|
— |
|
|
20 |
|
|
Auction rate securities |
|
|
7 |
|
|
— |
|
|
— |
|
|
7 |
|
|
Trade receivable from provisional copper and |
|
|
131 |
|
|
131 |
|
|
— |
|
|
— |
|
|
|
|
$ |
2,425 |
|
$ |
2,398 |
|
$ |
— |
|
$ |
27 |
|
|
Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Debt (2) |
|
$ |
5,555 |
|
$ |
— |
|
$ |
5,555 |
|
$ |
— |
|
|
Derivative instruments, net: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign exchange forward contracts |
|
|
25 |
|
|
— |
|
|
25 |
|
|
— |
|
|
Diesel forward contracts |
|
|
8 |
|
|
— |
|
|
8 |
|
|
— |
|
|
Boddington contingent consideration |
|
|
21 |
|
|
— |
|
|
— |
|
|
21 |
|
|
Holt property royalty |
|
|
225 |
|
|
— |
|
|
— |
|
|
225 |
|
|
|
|
$ |
5,834 |
|
$ |
— |
|
$ |
5,588 |
|
$ |
246 |
|
|
|
|
Fair Value at December 31, 2015 |
|
||||||||||
|
|
|
Total |
|
Level 1 |
|
Level 2 |
|
Level 3 |
|
||||
|
Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
2,363 |
|
$ |
2,363 |
|
$ |
— |
|
$ |
— |
|
|
Restricted assets (1) |
|
|
68 |
|
|
68 |
|
|
— |
|
|
— |
|
|
Marketable equity securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Extractive industries |
|
|
186 |
|
|
186 |
|
|
— |
|
|
— |
|
|
Other |
|
|
16 |
|
|
16 |
|
|
— |
|
|
— |
|
|
Marketable debt securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset backed commercial paper |
|
|
18 |
|
|
— |
|
|
— |
|
|
18 |
|
|
Auction rate securities |
|
|
7 |
|
|
— |
|
|
— |
|
|
7 |
|
|
Trade receivable from provisional copper and |
|
|
72 |
|
|
72 |
|
|
— |
|
|
— |
|
|
|
|
$ |
2,730 |
|
$ |
2,705 |
|
$ |
— |
|
$ |
25 |
|
|
Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Debt (2) |
|
$ |
5,143 |
|
$ |
— |
|
$ |
5,143 |
|
$ |
— |
|
|
Derivative instruments, net: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign exchange forward contracts |
|
|
60 |
|
|
— |
|
|
60 |
|
|
— |
|
|
Diesel forward contracts |
|
|
32 |
|
|
— |
|
|
32 |
|
|
— |
|
|
Boddington contingent consideration |
|
|
10 |
|
|
— |
|
|
— |
|
|
10 |
|
|
Holt property royalty |
|
|
129 |
|
|
— |
|
|
— |
|
|
129 |
|
|
|
|
$ |
5,374 |
|
$ |
— |
|
$ |
5,235 |
|
$ |
139 |
|
|
(1) |
Restricted assets include cash and marketable securities whose carrying amounts approximate their fair value. |
|
(2) |
Debt, exclusive of capital leases, is carried at amortized cost. The outstanding carrying value was $5,099 and $5,842 at September 30, 2016 and December 31, 2015, respectively. The fair value measurement of debt was based on prices obtained from readily available pricing sources. |
The fair values of the derivative instruments in the table above are presented on a net basis. The gross amounts related to the fair value of the derivatives instruments above are included in Note 15. All other fair value disclosures in the above table are presented on a gross basis.
The Company’s cash and cash equivalent instruments are classified within Level 1 of the fair value hierarchy because they are valued using quoted market prices. The cash and cash equivalent instruments that are valued based on quoted market prices in active markets are primarily money market securities and U.S. Treasury securities.
The Company’s marketable equity securities are valued using quoted market prices in active markets and, as such, are classified within Level 1 of the fair value hierarchy. The securities are segregated based on industry. The fair value of the marketable equity securities is calculated as the quoted market price of the marketable equity security multiplied by the quantity of shares held by the Company.
The Company’s marketable debt securities include investments in auction rate securities and asset backed commercial paper. The Company reviews the fair value for auction rate securities and asset backed commercial paper on a quarterly basis. The marketable debt securities are traded in markets that are not active, trade infrequently and have little price transparency. Therefore, the investments are classified as Level 3 of the fair value hierarchy. See the table below which sets forth a summary of the quantitative and qualitative information related to the significant unobservable inputs used in the calculation of the fair value.
The Company’s net trade receivable from provisional copper and gold concentrate sales, subject to final pricing, is valued using quoted market prices based on forward curves and, as such, is classified within Level 1 of the fair value hierarchy.
The Company’s derivative instruments are valued using pricing models and the Company generally uses similar models to value similar instruments. Valuation models require a variety of inputs, including contractual terms, market prices, forward curves, measures of volatility and correlations of such inputs. The Company’s derivatives trade in liquid markets and, as such, model inputs can generally be verified and do not involve significant management judgment. Such instruments are classified within Level 2 of the fair value hierarchy.
The estimated value of the Boddington contingent royalty was determined using a (i) discounted cash flow model, (ii) Monte Carlo valuation model to simulate future gold and copper prices using the Company’s long-term gold and copper prices and (iii) Monte Carlo valuation model to simulate costs applicable to sales using the Company’s Australian to U.S. dollar exchange rate. This contingent royalty is capped at $100, of which $72 has been paid to date. The contingent royalty is classified within Level 3 of the fair value hierarchy.
The estimated fair value of the Holt sliding scale royalty was determined using (i) a discounted cash flow model, (ii) a Monte Carlo valuation model to simulate future gold prices using the Company’s long-term gold price, (iii) various gold production scenarios from reserve and resource information and (iv) a weighted average discount rate. The sliding scale royalty liability is classified within Level 3 of the fair value hierarchy.
The following tables set forth a summary of the quantitative and qualitative information related to the unobservable inputs used in the calculation of the Company’s Level 3 financial assets and liabilities at September 30, 2016 and December 31, 2015:
|
|
|
At September 30, |
|
|
|
|
|
Range/Weighted |
|
||
|
Description |
|
2016 |
|
Valuation technique |
|
Unobservable input |
|
average |
|
||
|
Auction rate securities |
|
$ |
7 |
|
Risk-adjusted indicative price |
|
Recoverability rate |
|
|
90 |
% |
|
Asset backed commercial paper |
|
$ |
20 |
|
Risk-adjusted indicative price |
|
Recoverability rate |
|
|
90 |
% |
|
Boddington contingent consideration |
|
$ |
21 |
|
Monte Carlo |
|
Discount rate |
|
|
2.83 |
% |
|
|
|
|
|
|
|
|
Short-term gold price |
|
$ |
1,335 |
|
|
|
|
|
|
|
|
|
Long-term gold price |
|
$ |
1,300 |
|
|
|
|
|
|
|
|
|
Short-term copper price |
|
$ |
2.17 |
|
|
|
|
|
|
|
|
|
Long-term copper price |
|
$ |
3.00 |
|
|
|
|
|
|
|
|
|
Long-term Australian to U.S. dollar exchange rate |
|
$ |
0.80 |
|
|
Holt property royalty |
|
$ |
225 |
|
Monte Carlo |
|
Discount rate |
|
|
2.98 |
% |
|
|
|
|
|
|
|
|
Short-term gold price |
|
$ |
1,335 |
|
|
|
|
|
|
|
|
|
Long-term gold price |
|
$ |
1,300 |
|
|
|
|
|
|
|
|
|
Gold production scenarios (in 000's of ounces) |
|
|
348 - 1,586 |
|
|
|
|
At December 31, |
|
|
|
|
|
Range/Weighted |
|
||
|
Description |
|
2015 |
|
Valuation technique |
|
Unobservable input |
|
average |
|
||
|
Auction rate securities |
|
$ |
7 |
|
Risk-adjusted indicative price |
|
Recoverability rate |
|
|
85 |
% |
|
Asset backed commercial paper |
|
$ |
18 |
|
Risk-adjusted indicative price |
|
Recoverability rate |
|
|
90 |
% |
|
Boddington contingent consideration |
|
$ |
10 |
|
Monte Carlo |
|
Discount rate |
|
|
5.32 |
% |
|
|
|
|
|
|
|
|
Short-term gold price |
|
$ |
1,106 |
|
|
|
|
|
|
|
|
|
Long-term gold price |
|
$ |
1,300 |
|
|
|
|
|
|
|
|
|
Short-term copper price |
|
$ |
2.22 |
|
|
|
|
|
|
|
|
|
Long-term copper price |
|
$ |
3.00 |
|
|
|
|
|
|
|
|
|
Long-term Australian to U.S. dollar exchange rate |
|
$ |
0.80 |
|
|
Holt property royalty |
|
$ |
129 |
|
Monte Carlo |
|
Discount rate |
|
|
5.06 |
% |
|
|
|
|
|
|
|
|
Short-term gold price |
|
$ |
1,106 |
|
|
|
|
|
|
|
|
|
Long-term gold price |
|
$ |
1,300 |
|
|
|
|
|
|
|
|
|
Gold production scenarios (in 000's of ounces) |
|
|
398 - 1,636 |
|
The following tables set forth a summary of changes in the fair value of the Company’s Level 3 financial assets and liabilities:
|
|
|
|
|
Asset |
|
|
|
|
|
|
|
|
|
||||||
|
|
|
Auction |
|
Backed |
|
|
|
Boddington |
|
Holt |
|
|
|
||||||
|
|
|
Rate |
|
Commercial |
|
Total |
|
Contingent |
|
Property |
|
Total |
|
||||||
|
|
|
Securities (1) |
|
Paper (1) |
|
Assets |
|
Consideration (2) |
|
Royalty (3) |
|
Liabilities |
|
||||||
|
Fair value at December 31, 2015 |
|
$ |
7 |
|
$ |
18 |
|
$ |
25 |
|
$ |
10 |
|
$ |
129 |
|
$ |
139 |
|
|
Settlements |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(8) |
|
|
(8) |
|
|
Revaluation |
|
|
— |
|
|
2 |
|
|
2 |
|
|
11 |
|
|
104 |
|
|
115 |
|
|
Fair value at September 30, 2016 |
|
$ |
7 |
|
$ |
20 |
|
$ |
27 |
|
$ |
21 |
|
$ |
225 |
|
$ |
246 |
|
|
|
|
|
|
Asset |
|
|
|
|
|
|
|
|
|
||||||
|
|
|
Auction |
|
Backed |
|
|
|
Boddington |
|
Holt |
|
|
|
||||||
|
|
|
Rate |
|
Commercial |
|
Total |
|
Contingent |
|
Property |
|
Total |
|
||||||
|
|
|
Securities (1) |
|
Paper (1) |
|
Assets |
|
Consideration (2) |
|
Royalty (3) |
|
Liabilities |
|
||||||
|
Fair value at December 31, 2014 |
|
$ |
6 |
|
$ |
24 |
|
$ |
30 |
|
$ |
10 |
|
$ |
179 |
|
$ |
189 |
|
|
Settlements |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(9) |
|
|
(9) |
|
|
Revaluation |
|
|
1 |
|
|
(5) |
|
|
(4) |
|
|
— |
|
|
(49) |
|
|
(49) |
|
|
Fair value at September 30, 2015 |
|
$ |
7 |
|
$ |
19 |
|
$ |
26 |
|
$ |
10 |
|
$ |
121 |
|
$ |
131 |
|
|
(1) |
The gain (loss) recognized is included in Accumulated other comprehensive income (loss). |
|
(2) |
The gain (loss) recognized is included in Other expense, net. |
|
(3) |
The gain (loss) recognized is included in Net income (loss) from discontinued operations. |
There were no assets or liabilities measured at fair value on a non-recurring basis as of September 30, 2016 and December 31, 2015 other than as a result of classifying PTNNT as held for sale. Level 3 inputs based on the estimated proceeds expected from the sale of PTNNT were used by the Company in estimating the fair value of PTNNT as of September 30, 2016. For additional information see Note 3.
|
|||
NOTE 15 DERIVATIVE INSTRUMENTS
The Company’s strategy is to provide shareholders with leverage to changes in gold and copper prices by selling its production at spot market prices. Consequently, the Company does not hedge its gold and copper sales. The Company has and will continue to manage certain risks associated with commodity input costs, interest rates and foreign currencies using the derivative market. All of the derivative instruments described below were transacted for risk management purposes and qualify as cash flow hedges.
Cash Flow Hedges
The following foreign currency and diesel contracts are designated as cash flow hedges and, as such, the effective portion of unrealized changes in market value have been recorded in Accumulated other comprehensive income (loss) and are reclassified to income during the period in which the hedged transaction affects earnings. Gains and losses from hedge ineffectiveness are recognized in current earnings.
Foreign Currency Contracts
The Company had the following foreign currency derivative contracts in Asia Pacific outstanding at September 30, 2016:
|
|
|
Expected Maturity Date |
|
||||||
|
|
|
2016 |
|
2017 |
|
2018 |
|
Total/Average |
|
|
A$ Operating Fixed Forward Contracts: |
|
|
|
|
|
|
|
|
|
|
A$ notional (millions) |
|
35 |
|
105 |
|
6 |
|
146 |
|
|
Average rate ($/A$) |
|
0.94 |
|
0.93 |
|
0.92 |
|
0.94 |
|
|
Expected hedge ratio |
10 |
% |
8 |
% |
4 |
% |
|||
The A$ hedges run through the first quarter of 2018.
Diesel Fixed Forward Contracts
The Company had the following diesel derivative contracts in North America outstanding at September 30, 2016:
|
|
|
Expected Maturity Date |
|
||||||
|
|
|
2016 |
|
2017 |
|
2018 |
|
Total/Average |
|
|
Diesel Fixed Forward Contracts: |
|
|
|
|
|
|
|
|
|
|
Diesel gallons (millions) |
|
6 |
|
15 |
|
1 |
|
22 |
|
|
Average rate ($/gallon) |
|
2.07 |
|
1.74 |
|
1.53 |
|
1.82 |
|
|
Expected hedge ratio |
|
57 |
% |
36 |
% |
6 |
% |
|
|
Newmont hedges a portion of its operating cost exposure related to diesel consumed at its Nevada operations to reduce the variability in diesel prices. The hedging instruments consist of a series of financially settled fixed forward contracts, which run through the first quarter of 2018.
Derivative Instrument Fair Values
The Company had the following derivative instruments designated as hedges at September 30, 2016 and December 31, 2015:
|
|
|
Fair Values of Derivative Instruments |
|
||||||||||
|
|
|
At September 30, 2016 |
|
||||||||||
|
|
|
Other |
|
Other |
|
Other |
|
Other |
|
||||
|
|
|
Current |
|
Non-current |
|
Current |
|
Non-current |
|
||||
|
|
|
Assets |
|
Assets |
|
Liabilities |
|
Liabilities |
|
||||
|
Foreign currency exchange contracts: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
A$ operating fixed forwards |
|
$ |
— |
|
$ |
— |
|
$ |
20 |
|
$ |
5 |
|
|
Diesel fixed forwards |
|
|
1 |
|
|
1 |
|
|
10 |
|
|
— |
|
|
Total derivative instruments |
|
$ |
1 |
|
$ |
1 |
|
$ |
30 |
|
$ |
5 |
|
|
|
|
Fair Values of Derivative Instruments |
|
||||||||||
|
|
|
At December 31, 2015 |
|
||||||||||
|
|
|
Other |
|
Other |
|
Other |
|
Other |
|
||||
|
|
|
Current |
|
Non-current |
|
Current |
|
Non-current |
|
||||
|
|
|
Assets |
|
Assets |
|
Liabilities |
|
Liabilities |
|
||||
|
Foreign currency exchange contracts: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
A$ operating fixed forwards |
|
$ |
— |
|
$ |
— |
|
$ |
36 |
|
$ |
24 |
|
|
Diesel fixed forwards |
|
|
— |
|
|
— |
|
|
27 |
|
|
5 |
|
|
Total derivative instruments |
|
$ |
— |
|
$ |
— |
|
$ |
63 |
|
$ |
29 |
|
As of September 30, 2016 and December 31, 2015, all derivative instruments held by the Company were subject to enforceable master netting arrangements held by various financial institutions. In general, the terms of the Company’s agreements provide for offsetting of amounts payable or receivable between it and the counterparty, at the election of both parties, for transactions that occur on the same date and in the same currency. The Company’s agreements also provide that in the event of an early termination, the counterparties have the right to offset amounts owed or owing under that and any other agreement with the same counterparty. The Company’s accounting policy is to not offset these positions in its accompanying balance sheets. As of September 30, 2016, the potential effect of netting derivative assets against liabilities due to the master netting agreements was $2. As of December 31, 2015, all gross amounts presented in the accompanying balance sheets were in a liability position.
The following tables show the location and amount of gains (losses) reported in the Company’s Condensed Consolidated Financial Statements related to the Company’s hedges.
|
|
|
Foreign Currency |
|
Diesel Fixed |
|
Interest |
|
||||||||||||
|
|
|
Exchange Contracts |
|
Forward Contracts |
|
Rate Contracts |
|
||||||||||||
|
|
|
2016 |
|
2015 |
|
2016 |
|
2015 |
|
2016 |
|
2015 |
|
||||||
|
For the three months ended September 30, |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flow hedging relationships: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain (loss) recognized in Other comprehensive income (loss) (effective portion) |
|
$ |
4 |
|
$ |
(24) |
|
$ |
— |
|
$ |
(12) |
|
$ |
— |
|
$ |
— |
|
|
Gain (loss) reclassified from Accumulated other comprehensive income (loss) into income (loss) (effective portion) (1) |
|
$ |
(9) |
|
$ |
(12) |
|
$ |
(4) |
|
$ |
(7) |
|
$ |
(3) |
|
$ |
(5) |
|
|
Gain (loss) reclassified from Accumulated other comprehensive income (loss) into income (loss) (ineffective portion) (2) |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
1 |
|
$ |
— |
|
$ |
— |
|
|
For the nine months ended September 30, |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flow hedging relationships: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain (loss) recognized in Other comprehensive income (loss) (effective portion) |
|
$ |
8 |
|
$ |
(48) |
|
$ |
5 |
|
$ |
(13) |
|
$ |
— |
|
$ |
— |
|
|
Gain (loss) reclassified from Accumulated other comprehensive income (loss) into income (loss) (effective portion) (1) |
|
$ |
(29) |
|
$ |
(25) |
|
$ |
(18) |
|
$ |
(20) |
|
$ |
(11) |
|
$ |
(14) |
|
|
Gain (loss) reclassified from Accumulated other comprehensive income (loss) into income (loss) (ineffective portion) (2) |
|
$ |
— |
|
$ |
— |
|
$ |
1 |
|
$ |
2 |
|
$ |
— |
|
$ |
— |
|
|
(1) |
The gain (loss) recognized for the effective portion of cash flow hedges is included in Cost applicable to sales and Interest expense, net. |
|
(2) |
The ineffective portion recognized for cash flow hedges is included in Other income, net. |
Based on fair values at September 30, 2016, the amount to be reclassified from Accumulated other comprehensive income (loss), net of tax to income for derivative instruments during the next 12 months is a loss of approximately $30.
Provisional Gold and Copper Sales
The Company’s provisional gold and copper concentrate sales contain an embedded derivative that is required to be separated from the host contract for accounting purposes. The host contract is the receivable from the sale of the gold and copper concentrates at the prevailing indices’ prices at the time of sale. The embedded derivative, which does not qualify for hedge accounting, is marked to market through earnings each period prior to final settlement.
At September 30, 2016, Newmont had gold and copper sales of 130,000 ounces and 26 million pounds priced at an average of $1,324 per ounce and $2.20 per pound, respectively, subject to final pricing over the next several months.
|
|||
NOTE 16 INVESTMENTS
|
|
|
At September 30, 2016 |
|
||||||||||
|
|
|
Cost/Equity |
|
Unrealized |
|
Fair/Equity |
|
||||||
|
|
|
Basis |
|
Gain |
|
Loss |
|
Basis |
|
||||
|
Current: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Marketable Equity Securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Novo Resources Corp. |
|
$ |
14 |
|
$ |
9 |
|
$ |
— |
|
$ |
23 |
|
|
Gabriel Resources Ltd. |
|
|
5 |
|
|
19 |
|
|
— |
|
|
24 |
|
|
Other |
|
|
15 |
|
|
18 |
|
|
— |
|
|
33 |
|
|
|
|
$ |
34 |
|
$ |
46 |
|
$ |
— |
|
$ |
80 |
|
|
Non-current: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Marketable Debt Securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset backed commercial paper |
|
$ |
19 |
|
$ |
1 |
|
$ |
— |
|
$ |
20 |
|
|
Auction rate securities |
|
|
8 |
|
|
— |
|
|
(1) |
|
|
7 |
|
|
|
|
|
27 |
|
|
1 |
|
|
(1) |
|
|
27 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Marketable Equity Securities |
|
|
19 |
|
|
2 |
|
|
— |
|
|
21 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other investments, at cost |
|
|
6 |
|
|
— |
|
|
— |
|
|
6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity Method Investments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TMAC |
|
|
110 |
|
|
— |
|
|
— |
|
|
110 |
|
|
Minera La Zanja S.R.L. |
|
|
72 |
|
|
— |
|
|
— |
|
|
72 |
|
|
Euronimba Ltd. |
|
|
3 |
|
|
— |
|
|
— |
|
|
3 |
|
|
|
|
$ |
237 |
|
$ |
3 |
|
$ |
(1) |
|
$ |
239 |
|
|
|
|
At December 31, 2015 |
|
||||||||||
|
|
|
Cost/Equity |
|
Unrealized |
|
Fair/Equity |
|
||||||
|
|
|
Basis |
|
Gain |
|
Loss |
|
Basis |
|
||||
|
Current: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Marketable Equity Securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gabriel Resources Ltd. |
|
$ |
5 |
|
$ |
— |
|
$ |
— |
|
$ |
5 |
|
|
Other |
|
|
14 |
|
|
2 |
|
|
(2) |
|
|
14 |
|
|
|
|
$ |
19 |
|
$ |
2 |
|
$ |
(2) |
|
$ |
19 |
|
|
Non-current: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Marketable Debt Securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset backed commercial paper |
|
$ |
17 |
|
$ |
1 |
|
$ |
— |
|
$ |
18 |
|
|
Auction rate securities |
|
|
8 |
|
|
— |
|
|
(1) |
|
|
7 |
|
|
|
|
|
25 |
|
|
1 |
|
|
(1) |
|
|
25 |
|
|
Marketable Equity Securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Regis Resources Ltd. |
|
|
81 |
|
|
82 |
|
|
— |
|
|
163 |
|
|
Other |
|
|
17 |
|
|
3 |
|
|
— |
|
|
20 |
|
|
|
|
|
98 |
|
|
85 |
|
|
— |
|
|
183 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other investments, at cost |
|
|
6 |
|
|
— |
|
|
— |
|
|
6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity Method Investments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TMAC |
|
|
101 |
|
|
— |
|
|
— |
|
|
101 |
|
|
Minera La Zanja S.R.L. |
|
|
71 |
|
|
— |
|
|
— |
|
|
71 |
|
|
Novo Resources Corp. |
|
|
14 |
|
|
— |
|
|
— |
|
|
14 |
|
|
Euronimba Ltd. |
|
|
2 |
|
|
— |
|
|
— |
|
|
2 |
|
|
|
|
$ |
317 |
|
$ |
86 |
|
$ |
(1) |
|
$ |
402 |
|
In March 2016, the Company sold its investment in Regis Resources Ltd. for $184, resulting in a pre-tax gain of $103 recorded in Other income, net. The cost of the investment sold was determined using the specific identification method.
In March 2016, Newmont participated in the TMAC offering acquiring 242,979 shares for C$2, maintaining its 29.37% ownership interest. During the second quarter ended June 30, 2016, Newmont’s ownership interest was diluted to 29.2% due primarily to the exercising of warrants held by other shareholders. In July 2016, Newmont participated in a second offering acquiring an additional 1,159,000 shares for C$17.5, maintaining its 29.2% ownership interest. During 2015, Newmont determined that TMAC was no longer considered a variable interest entity and should no longer be consolidated into Newmont’s financial results due to a number of financing events, which took place during the year. Newmont deconsolidated the assets, liabilities and non-controlling interest related to TMAC and recognized a gain of $76, recorded within Other income, net, during the third quarter of 2015. The fair value of the retained investment was valued utilizing the market approach applying the initial public offering share price. Newmont’s retained investment in TMAC is accounted for as an equity method investment.
In September 2016, Novo Resources Corp. (“Novo”) issued 765,115 common shares to Talga Resources Ltd. for payment of the purchase price for certain projects. As a result of the issuance of these additional shares, Newmont’s ownership in Novo decreased to 19.97%. The Company determined that Novo no longer qualified as an equity method investment and is now accounting for this investment at fair value. At September 30, 2016, Newmont recognized an unrealized gain of $9 in Accumulated other comprehensive income (loss) related to Novo.
There were no investment impairments for other-than-temporary declines in value during the three and nine months ended September 30, 2016. As of September 30, 2016, there was a $29 increase in the fair value of marketable securities previously impaired, primarily due to Gabriel Resources Ltd., Pilot Gold, Eurasian Minerals, Inc. and Loncor Resources, Inc. During the three and nine months ended September 30, 2015, the Company recognized investment impairments for other-than-temporary declines in value of $28 and $101, respectively, in Other income, net. Impairments recognized during the three months ended September 30, 2015, were primarily related to holdings of Gabriel Resources Ltd. for $21 and Pilot Gold for $7. Impairments recognized during the nine months ended September 30, 2015, were primarily related to Regis Resources Ltd., Gabriel Resources Ltd. and Pilot Gold as a result of continued decline in stock prices. As of September 30, 2015, there was a $38 increase in the fair value of marketable securities previously impaired, primarily due to Regis Resources Ltd.
The following tables present the gross unrealized losses and fair value of the Company’s investments with unrealized losses that are deemed to be temporarily impaired, aggregated by length of time that the individual securities have been in a continuous unrealized loss position:
|
|
|
Less than 12 Months |
|
12 Months or Greater |
|
Total |
|
||||||||||||
|
At September 30, 2016 |
|
Fair Value |
|
Unrealized |
|
Fair Value |
|
Unrealized |
|
Fair Value |
|
Unrealized |
|
||||||
|
Marketable equity securities |
|
$ |
3 |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
3 |
|
$ |
— |
|
|
Auction rate securities |
|
|
— |
|
|
— |
|
|
7 |
|
|
1 |
|
|
7 |
|
|
1 |
|
|
|
|
$ |
3 |
|
$ |
— |
|
$ |
7 |
|
$ |
1 |
|
$ |
10 |
|
$ |
1 |
|
|
|
|
Less than 12 Months |
|
12 Months or Greater |
|
Total |
|
||||||||||||
|
At December 31, 2015 |
|
Fair Value |
|
Unrealized |
|
Fair Value |
|
Unrealized |
|
Fair Value |
|
Unrealized |
|
||||||
|
Marketable equity securities |
|
$ |
5 |
|
$ |
2 |
|
$ |
— |
|
$ |
— |
|
$ |
5 |
|
$ |
2 |
|
|
Auction rate securities |
|
|
— |
|
|
— |
|
|
7 |
|
|
1 |
|
|
7 |
|
|
1 |
|
|
|
|
$ |
5 |
|
$ |
2 |
|
$ |
7 |
|
$ |
1 |
|
$ |
12 |
|
$ |
3 |
|
While the fair value of some of the Company’s investments in marketable equity securities and auction rate securities are below their respective cost, the Company views these declines as temporary. The Company has the ability and intends to hold its securities until maturity or such time that the market recovers.
|
|||
NOTE 17 INVENTORIES
|
|
|
At September 30, |
|
At December 31, |
|
||
|
|
|
2016 |
|
2015 |
|
||
|
Materials and supplies |
|
$ |
386 |
|
$ |
372 |
|
|
In-process |
|
|
125 |
|
|
115 |
|
|
Concentrate and copper cathode |
|
|
84 |
|
|
64 |
|
|
Precious metals |
|
|
14 |
|
|
10 |
|
|
|
|
$ |
609 |
|
$ |
561 |
|
|
|||
NOTE 18 STOCKPILES AND ORE ON LEACH PADS
|
|
|
At September 30, |
|
At December 31, |
|
||
|
|
|
2016 |
|
2015 |
|
||
|
Current: |
|
|
|
|
|
|
|
|
Stockpiles |
|
$ |
398 |
|
$ |
440 |
|
|
Ore on leach pads |
|
|
387 |
|
|
342 |
|
|
|
|
$ |
785 |
|
$ |
782 |
|
|
Non-current: |
|
|
|
|
|
|
|
|
Stockpiles |
|
$ |
1,545 |
|
$ |
1,518 |
|
|
Ore on leach pads |
|
|
332 |
|
|
378 |
|
|
|
|
$ |
1,877 |
|
$ |
1,896 |
|
|
|
|
At September 30, |
|
At December 31, |
|
||
|
|
|
2016 |
|
2015 |
|
||
|
Stockpiles and ore on leach pads: |
|
|
|
|
|
|
|
|
Carlin |
|
$ |
449 |
|
$ |
394 |
|
|
Phoenix |
|
|
84 |
|
|
106 |
|
|
Twin Creeks |
|
|
338 |
|
|
329 |
|
|
Long Canyon |
|
|
2 |
|
|
— |
|
|
CC&V |
|
|
353 |
|
|
319 |
|
|
Yanacocha |
|
|
358 |
|
|
440 |
|
|
Merian |
|
|
11 |
|
|
4 |
|
|
Boddington |
|
|
396 |
|
|
390 |
|
|
Tanami |
|
|
12 |
|
|
12 |
|
|
Kalgoorlie |
|
|
110 |
|
|
109 |
|
|
Ahafo |
|
|
426 |
|
|
456 |
|
|
Akyem |
|
|
123 |
|
|
119 |
|
|
|
|
$ |
2,662 |
|
$ |
2,678 |
|
During the three and nine months ended September 30, 2016, the Company recorded write-downs of $92 and $199, respectively, classified as components of Costs applicable to sales, and write-downs of $45 and $95, respectively, classified as components of Depreciation and amortization to reduce the carrying value of stockpiles and ore on leach pads to net realizable value. Adjustments to net realizable value are primarily a result of higher future processing costs in addition to stripping campaigns driving lower grade and lower recovery resulting in higher costs per unit in North America, higher future processing costs and lower expected recoveries in South America, and higher future processing costs in Africa. Of the write-downs during the three months ended September 30, 2016, $12 is related to Carlin, $1 to Twin Creeks, $77 to Yanacocha and $47 to Ahafo. Of the write-downs during the nine months ended September 30, 2016, $69 is related to Carlin, $14 to Twin Creeks, $164 to Yanacocha and $47 to Ahafo.
|
|||
NOTE 19 DEBT
On March 29, 2016, the Company accepted for purchase approximately $274 of its 2019 Notes and $226 of its 2039 Notes through a debt tender offer. The Company recorded a net pre-tax loss of $4 in Other income, net as a result of the debt tender offer. Additionally, the Company reclassified $2 in Interest expense, net from Accumulated other comprehensive income (loss) related to the acceleration of the unrealized gains on the treasury rate lock contracts, which were entered into upon issuance of the Notes in 2009.
On August 15, 2016, the Company paid the remaining principal balance on the Term Loan of $275. No premiums were paid as a result of early payment.
Scheduled minimum debt repayments are $3 for the remainder of 2016, $575 in 2017, $nil in 2018, $626 in 2019, $nil in 2020 and $3,974 thereafter. Scheduled minimum capital lease repayments are $1 in 2016, $5 in 2017, $4 in 2018, $3 in 2019, $1 in 2020 and $3 thereafter.
|
|||
NOTE 20 OTHER LIABILITIES
|
|
|
At September 30, |
|
At December 31, |
|
||
|
|
|
2016 |
|
2015 |
|
||
|
Other current liabilities: |
|
|
|
|
|
|
|
|
Accrued operating costs |
|
$ |
112 |
|
$ |
85 |
|
|
Accrued capital expenditures |
|
|
84 |
|
|
112 |
|
|
Reclamation and remediation liabilities |
|
|
62 |
|
|
63 |
|
|
Accrued interest |
|
|
65 |
|
|
69 |
|
|
Derivative instruments |
|
|
30 |
|
|
63 |
|
|
Royalties |
|
|
32 |
|
|
46 |
|
|
Holt property royalty |
|
|
15 |
|
|
10 |
|
|
Boddington contingent consideration |
|
|
10 |
|
|
— |
|
|
Taxes other than income and mining |
|
|
7 |
|
|
8 |
|
|
Other |
|
|
39 |
|
|
31 |
|
|
|
|
$ |
456 |
|
$ |
487 |
|
|
|
|
|
|
|
|
|
|
|
Other non-current liabilities: |
|
|
|
|
|
|
|
|
Holt property royalty |
|
$ |
210 |
|
$ |
119 |
|
|
Income and mining taxes |
|
|
58 |
|
|
78 |
|
|
Power supply agreements |
|
|
32 |
|
|
31 |
|
|
Social development obligations |
|
|
28 |
|
|
29 |
|
|
Boddington contingent consideration |
|
|
11 |
|
|
10 |
|
|
Derivative instruments |
|
|
5 |
|
|
29 |
|
|
Other |
|
|
12 |
|
|
14 |
|
|
|
|
$ |
356 |
|
$ |
310 |
|
|
|||
NOTE 21 CHANGES IN EQUITY
|
|
|
Nine Months Ended September 30, |
|
||||
|
|
|
2016 |
|
2015 |
|
||
|
Common stock: |
|
|
|
|
|
|
|
|
At beginning of period |
|
$ |
847 |
|
$ |
798 |
|
|
Stock-based awards |
|
|
2 |
|
|
2 |
|
|
Stock issuance |
|
|
— |
|
|
46 |
|
|
At end of period |
|
|
849 |
|
|
846 |
|
|
Additional paid-in capital: |
|
|
|
|
|
|
|
|
At beginning of period |
|
|
9,427 |
|
|
8,712 |
|
|
Stock-based awards |
|
|
42 |
|
|
56 |
|
|
Stock issuance |
|
|
— |
|
|
629 |
|
|
Sale of noncontrolling interests |
|
|
— |
|
|
12 |
|
|
At end of period |
|
|
9,469 |
|
|
9,409 |
|
|
Accumulated other comprehensive income (loss): |
|
|
|
|
|
|
|
|
At beginning of period |
|
|
(334) |
|
|
(478) |
|
|
Other comprehensive income (loss) |
|
|
32 |
|
|
89 |
|
|
At end of period |
|
|
(302) |
|
|
(389) |
|
|
Retained earnings: |
|
|
|
|
|
|
|
|
At beginning of period |
|
|
1,410 |
|
|
1,242 |
|
|
Net income (loss) attributable to Newmont stockholders |
|
|
(283) |
|
|
474 |
|
|
Dividends paid |
|
|
(41) |
|
|
(38) |
|
|
At end of period |
|
|
1,086 |
|
|
1,678 |
|
|
Noncontrolling interests: |
|
|
|
|
|
|
|
|
At beginning of period |
|
|
2,942 |
|
|
2,815 |
|
|
Net income (loss) attributable to noncontrolling interests |
|
|
167 |
|
|
188 |
|
|
Dividends paid to noncontrolling interests |
|
|
(146) |
|
|
(3) |
|
|
Funding from noncontrolling interests, net |
|
|
63 |
|
|
69 |
|
|
Acquisition of noncontrolling interests |
|
|
(19) |
|
|
(8) |
|
|
Sale of noncontrolling interests, net |
|
|
— |
|
|
(36) |
|
|
At end of period |
|
|
3,007 |
|
|
3,025 |
|
|
Total equity |
|
$ |
14,109 |
|
$ |
14,569 |
|
.
|
|||
NOTE 22 RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)
|
|
|
|
|
|
|
Pension and |
|
Changes in |
|
|
|
|||||
|
|
|
Unrealized gain |
|
Foreign |
|
other |
|
fair value of |
|
|
|
|||||
|
|
|
(loss) on |
|
currency |
|
post‑retirement |
|
cash flow |
|
|
|
|||||
|
|
|
marketable |
|
translation |
|
benefit |
|
hedge |
|
|
|
|||||
|
|
|
securities, net |
|
adjustments |
|
adjustments |
|
instruments |
|
Total |
|
|||||
|
Balance at December 31, 2015 |
|
$ |
(43) |
|
$ |
116 |
|
$ |
(207) |
|
$ |
(200) |
|
$ |
(334) |
|
|
Change in other comprehensive income (loss) before reclassifications |
|
|
66 |
|
|
10 |
|
|
(4) |
|
|
11 |
|
|
83 |
|
|
Reclassifications from accumulated other comprehensive income (loss) |
|
|
(103) |
|
|
— |
|
|
12 |
|
|
40 |
|
|
(51) |
|
|
Net current-period change |
|
|
(37) |
|
|
10 |
|
|
8 |
|
|
51 |
|
|
32 |
|
|
Balance at September 30, 2016 |
|
$ |
(80) |
|
$ |
126 |
|
$ |
(199) |
|
$ |
(149) |
|
$ |
(302) |
|
|
Details about Accumulated Other Comprehensive Income (Loss) Components |
|
Amount Reclassified from Accumulated Other Comprehensive Income (Loss) |
|
Affected Line Item in the Condensed Consolidated Statements of Operations |
|
||||||||||
|
|
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
|
|
||||||||
|
|
|
2016 |
|
2015 |
|
2016 |
|
2015 |
|
|
|
||||
|
Marketable securities adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sale of marketable securities |
|
$ |
— |
|
$ |
|
|
$ |
(103) |
|
$ |
(1) |
|
Other income, net |
|
|
Impairment of marketable securities |
|
|
— |
|
|
28 |
|
|
— |
|
|
101 |
|
Other income, net |
|
|
Net of tax |
|
$ |
— |
|
$ |
28 |
|
$ |
(103) |
|
$ |
100 |
|
|
|
|
Pension and other post-retirement benefit adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization |
|
$ |
5 |
|
$ |
5 |
|
$ |
14 |
|
$ |
19 |
|
(1) |
|
|
Settlement |
|
|
4 |
|
|
3 |
|
|
4 |
|
|
3 |
|
Other expense, net |
|
|
Total before tax |
|
|
9 |
|
|
8 |
|
|
18 |
|
|
22 |
|
|
|
|
Tax benefit (expense) |
|
|
(3) |
|
|
(3) |
|
|
(6) |
|
|
(7) |
|
|
|
|
Net of tax |
|
$ |
6 |
|
$ |
5 |
|
$ |
12 |
|
$ |
15 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hedge instruments adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating cash flow hedges (effective portion) |
|
$ |
13 |
|
$ |
19 |
|
$ |
47 |
|
$ |
45 |
|
Costs applicable to sales |
|
|
Operating cash flow hedges (ineffective portion) |
|
|
— |
|
|
(1) |
|
|
(1) |
|
|
(2) |
|
Other income, net |
|
|
Interest rate contracts |
|
|
3 |
|
|
5 |
|
|
11 |
|
|
14 |
|
Interest expense, net |
|
|
Total before tax |
|
|
16 |
|
|
23 |
|
|
57 |
|
|
57 |
|
|
|
|
Tax benefit (expense) |
|
|
(4) |
|
|
(6) |
|
|
(17) |
|
|
(17) |
|
|
|
|
Net of tax |
|
$ |
12 |
|
$ |
17 |
|
$ |
40 |
|
$ |
40 |
|
|
|
|
Total reclassifications for the period, net of tax |
|
$ |
18 |
|
$ |
50 |
|
$ |
(51) |
|
$ |
155 |
|
|
|
|
(1) |
Included in General and administrative or included as a component of Costs applicable to sales, which are incurred in the inventory/production process. Refer to Note 2 to the Consolidated Financial Statements for the year ended December 31, 2015 filed February 17, 2016 on Form 10-K for information on costs that benefit the inventory/production process. |
|
|||
NOTE 23 NET CHANGE IN OPERATING ASSETS AND LIABILITIES
Net cash provided by operating activities attributable to the net change in operating assets and liabilities is composed of the following:
|
|
|
Nine Months Ended September 30, |
|
||||
|
|
|
2016 |
|
2015 |
|
||
|
Decrease (increase) in operating assets: |
|
|
|
|
|
|
|
|
Trade and other accounts receivables |
|
$ |
34 |
|
$ |
107 |
|
|
Inventories, stockpiles and ore on leach pads |
|
|
(243) |
|
|
(242) |
|
|
EGR refinery and other assets (1) |
|
|
— |
|
|
(36) |
|
|
Other assets |
|
|
(63) |
|
|
58 |
|
|
Increase (decrease) in operating liabilities: |
|
|
|
|
|
|
|
|
Accounts payable |
|
|
(16) |
|
|
17 |
|
|
EGR refinery and other liabilities (1) |
|
|
— |
|
|
36 |
|
|
Reclamation liabilities |
|
|
(35) |
|
|
(48) |
|
|
Other accrued liabilities |
|
|
(109) |
|
|
(74) |
|
|
|
|
$ |
(432) |
|
$ |
(182) |
|
|
(1) |
On July 24, 2015, the Company sold its ownership interest in European Gold Refinery Holdings (“EGR”). |
|
|||
NOTE 24 CONDENSED CONSOLIDATING FINANCIAL STATEMENTS
The following Condensed Consolidating Financial Statements are presented to satisfy disclosure requirements of Rule 3-10(e) of Regulation S-X resulting from the inclusion of Newmont USA Limited (“Newmont USA”), a wholly-owned subsidiary of Newmont, as a co-registrant with Newmont on debt securities issued under a shelf registration statement on Form S-3 filed under the Securities Act of 1933 under which securities of Newmont (including debt securities guaranteed by Newmont USA) may be issued (the “Shelf Registration Statement”). In accordance with Rule 3-10(e) of Regulation S-X, Newmont USA, as the subsidiary guarantor, is 100% owned by Newmont, the guarantees are full and unconditional, and no other subsidiary of Newmont guaranteed any security issued under the Shelf Registration Statement. There are no restrictions on the ability of Newmont or Newmont USA to obtain funds from its subsidiaries by dividend or loan.
During the first quarter of 2016, the Company conducted certain restructurings for tax planning purposes which modified the entities owned by the guarantor and impacted their respective Condensed Consolidating Financial statements.
|
|
|
Three Months Ended September 30, 2016 |
|
|||||||||||||
|
|
|
(Issuer) |
|
(Guarantor) |
|
(Non-Guarantor) |
|
|
|
Newmont |
|
|||||
|
|
|
Newmont |
|
|
|
|
|
|
|
|
|
|
Mining |
|
||
|
|
|
Mining |
|
Newmont |
|
Other |
|
|
|
Corporation |
|
|||||
|
Condensed Consolidating Statement of Operation |
|
Corporation |
|
USA |
|
Subsidiaries |
|
Eliminations |
|
Consolidated |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales |
|
$ |
— |
|
$ |
537 |
|
$ |
1,254 |
|
$ |
— |
|
$ |
1,791 |
|
|
Costs and expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs applicable to sales (1) |
|
|
— |
|
|
308 |
|
|
675 |
|
|
— |
|
|
983 |
|
|
Depreciation and amortization |
|
|
1 |
|
|
80 |
|
|
254 |
|
|
— |
|
|
335 |
|
|
Reclamation and remediation |
|
|
— |
|
|
3 |
|
|
22 |
|
|
— |
|
|
25 |
|
|
Exploration |
|
|
— |
|
|
10 |
|
|
29 |
|
|
— |
|
|
39 |
|
|
Advanced projects, research and development |
|
|
— |
|
|
4 |
|
|
30 |
|
|
— |
|
|
34 |
|
|
General and administrative |
|
|
— |
|
|
25 |
|
|
38 |
|
|
— |
|
|
63 |
|
|
Other expense, net |
|
|
— |
|
|
7 |
|
|
14 |
|
|
— |
|
|
21 |
|
|
|
|
|
1 |
|
|
437 |
|
|
1,062 |
|
|
— |
|
|
1,500 |
|
|
Other income (expense) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income, net |
|
|
2 |
|
|
5 |
|
|
(11) |
|
|
— |
|
|
(4) |
|
|
Interest income - intercompany |
|
|
42 |
|
|
(1) |
|
|
14 |
|
|
(55) |
|
|
— |
|
|
Interest expense - intercompany |
|
|
(13) |
|
|
— |
|
|
(42) |
|
|
55 |
|
|
— |
|
|
Interest expense, net |
|
|
(62) |
|
|
(1) |
|
|
(1) |
|
|
— |
|
|
(64) |
|
|
|
|
|
(31) |
|
|
3 |
|
|
(40) |
|
|
— |
|
|
(68) |
|
|
Income (loss) before income and mining tax and other items |
|
|
(32) |
|
|
103 |
|
|
152 |
|
|
— |
|
|
223 |
|
|
Income and mining tax benefit (expense) |
|
|
11 |
|
|
(23) |
|
|
(78) |
|
|
— |
|
|
(90) |
|
|
Equity income (loss) of affiliates |
|
|
(338) |
|
|
(78) |
|
|
2 |
|
|
416 |
|
|
2 |
|
|
Income (loss) from continuing operations |
|
|
(359) |
|
|
2 |
|
|
76 |
|
|
416 |
|
|
135 |
|
|
Income (loss) from discontinued operations |
|
|
— |
|
|
— |
|
|
(448) |
|
|
— |
|
|
(448) |
|
|
Net income (loss) |
|
|
(359) |
|
|
2 |
|
|
(372) |
|
|
416 |
|
|
(313) |
|
|
Net loss (income) attributable to noncontrolling interests |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing operations |
|
|
— |
|
|
— |
|
|
34 |
|
|
— |
|
|
34 |
|
|
Discontinued operations |
|
|
— |
|
|
— |
|
|
(79) |
|
|
— |
|
|
(79) |
|
|
|
|
|
— |
|
|
— |
|
|
(45) |
|
|
— |
|
|
(45) |
|
|
Net income (loss) attributable to Newmont stockholders |
|
$ |
(359) |
|
$ |
2 |
|
$ |
(417) |
|
$ |
416 |
|
$ |
(358) |
|
|
Comprehensive income (loss) |
|
$ |
(319) |
|
$ |
8 |
|
$ |
(340) |
|
$ |
377 |
|
$ |
(274) |
|
|
Comprehensive loss (income) attributable to noncontrolling interests |
|
|
— |
|
|
— |
|
|
33 |
|
|
(78) |
|
|
(45) |
|
|
Comprehensive income (loss) attributable to Newmont stockholders |
|
$ |
(319) |
|
$ |
8 |
|
$ |
(307) |
|
$ |
299 |
|
$ |
(319) |
|
|
(1) |
Excludes Depreciation and amortization and Reclamation and remediation. |
|
|
|
Three Months Ended September 30, 2015 |
|
|||||||||||||
|
|
|
(Issuer) |
|
(Guarantor) |
|
(Non-Guarantor) |
|
|
|
Newmont |
|
|||||
|
|
|
Newmont |
|
|
|
|
|
|
|
Mining |
|
|||||
|
|
|
Mining |
|
Newmont |
|
Other |
|
|
|
Corporation |
|
|||||
|
Condensed Consolidating Statement of Operation |
|
Corporation |
|
USA |
|
Subsidiaries |
|
Eliminations |
|
Consolidated |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales |
|
$ |
— |
|
$ |
468 |
|
$ |
1,092 |
|
$ |
— |
|
$ |
1,560 |
|
|
Costs and expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs applicable to sales (1) |
|
|
— |
|
|
333 |
|
|
592 |
|
|
— |
|
|
925 |
|
|
Depreciation and amortization |
|
|
1 |
|
|
86 |
|
|
205 |
|
|
— |
|
|
292 |
|
|
Reclamation and remediation |
|
|
— |
|
|
3 |
|
|
19 |
|
|
— |
|
|
22 |
|
|
Exploration |
|
|
— |
|
|
6 |
|
|
28 |
|
|
— |
|
|
34 |
|
|
Advanced projects, research and development |
|
|
— |
|
|
3 |
|
|
28 |
|
|
— |
|
|
31 |
|
|
General and administrative |
|
|
— |
|
|
15 |
|
|
44 |
|
|
— |
|
|
59 |
|
|
Other expense, net |
|
|
— |
|
|
17 |
|
|
10 |
|
|
— |
|
|
27 |
|
|
|
|
|
1 |
|
|
463 |
|
|
926 |
|
|
— |
|
|
1,390 |
|
|
Other income (expense) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income, net |
|
|
— |
|
|
14 |
|
|
128 |
|
|
— |
|
|
142 |
|
|
Interest income - intercompany |
|
|
33 |
|
|
(2) |
|
|
3 |
|
|
(34) |
|
|
— |
|
|
Interest expense - intercompany |
|
|
(4) |
|
|
— |
|
|
(30) |
|
|
34 |
|
|
— |
|
|
Interest expense, net |
|
|
(70) |
|
|
(1) |
|
|
(3) |
|
|
— |
|
|
(74) |
|
|
|
|
|
(41) |
|
|
11 |
|
|
98 |
|
|
— |
|
|
68 |
|
|
Income (loss) before income and mining tax and other items |
|
|
(42) |
|
|
16 |
|
|
264 |
|
|
— |
|
|
238 |
|
|
Income and mining tax benefit (expense) |
|
|
15 |
|
|
4 |
|
|
(80) |
|
|
— |
|
|
(61) |
|
|
Equity income (loss) of affiliates |
|
|
246 |
|
|
(51) |
|
|
(3) |
|
|
(210) |
|
|
(18) |
|
|
Income (loss) from continuing operations |
|
|
219 |
|
|
(31) |
|
|
181 |
|
|
(210) |
|
|
159 |
|
|
Income (loss) from discontinued operations |
|
|
— |
|
|
— |
|
|
126 |
|
|
— |
|
|
126 |
|
|
Net income (loss) |
|
|
219 |
|
|
(31) |
|
|
307 |
|
|
(210) |
|
|
285 |
|
|
Net loss (income) attributable to noncontrolling interests |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing operations |
|
|
— |
|
|
— |
|
|
10 |
|
|
(10) |
|
|
— |
|
|
Discontinued operations |
|
|
— |
|
|
— |
|
|
(92) |
|
|
26 |
|
|
(66) |
|
|
|
|
|
— |
|
|
— |
|
|
(82) |
|
|
16 |
|
|
(66) |
|
|
Net income (loss) attributable to Newmont stockholders |
|
$ |
219 |
|
$ |
(31) |
|
$ |
225 |
|
$ |
(194) |
|
$ |
219 |
|
|
Comprehensive income (loss) |
|
$ |
270 |
|
$ |
(33) |
|
$ |
355 |
|
$ |
(256) |
|
$ |
336 |
|
|
Comprehensive loss (income) attributable to noncontrolling interests |
|
|
— |
|
|
— |
|
|
(83) |
|
|
17 |
|
|
(66) |
|
|
Comprehensive income (loss) attributable to Newmont stockholders |
|
$ |
270 |
|
$ |
(33) |
|
$ |
272 |
|
$ |
(239) |
|
$ |
270 |
|
|
(1) |
Excludes Depreciation and amortization and Reclamation and remediation. |
|
|
|
Nine Months Ended September 30, 2016 |
|
|||||||||||||
|
|
|
(Issuer) |
|
(Guarantor) |
|
(Non-Guarantor) |
|
|
|
|
Newmont |
|
||||
|
|
|
Newmont |
|
|
|
|
|
|
|
|
|
|
Mining |
|
||
|
|
|
Mining |
|
Newmont |
|
Other |
|
|
|
Corporation |
|
|||||
|
Condensed Consolidating Statement of Operation |
|
Corporation |
|
USA |
|
Subsidiaries |
|
Eliminations |
|
Consolidated |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales |
|
$ |
— |
|
$ |
1,467 |
|
$ |
3,455 |
|
$ |
— |
|
$ |
4,922 |
|
|
Costs and expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs applicable to sales (1) |
|
|
— |
|
|
898 |
|
|
1,838 |
|
|
— |
|
|
2,736 |
|
|
Depreciation and amortization |
|
|
3 |
|
|
240 |
|
|
649 |
|
|
— |
|
|
892 |
|
|
Reclamation and remediation |
|
|
— |
|
|
10 |
|
|
57 |
|
|
— |
|
|
67 |
|
|
Exploration |
|
|
— |
|
|
25 |
|
|
82 |
|
|
— |
|
|
107 |
|
|
Advanced projects, research and development |
|
|
— |
|
|
9 |
|
|
96 |
|
|
— |
|
|
105 |
|
|
General and administrative |
|
|
— |
|
|
65 |
|
|
113 |
|
|
— |
|
|
178 |
|
|
Other expense, net |
|
|
— |
|
|
21 |
|
|
33 |
|
|
— |
|
|
54 |
|
|
|
|
|
3 |
|
|
1,268 |
|
|
2,868 |
|
|
— |
|
|
4,139 |
|
|
Other income (expense) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income, net |
|
|
2 |
|
|
7 |
|
|
84 |
|
|
— |
|
|
93 |
|
|
Interest income - intercompany |
|
|
103 |
|
|
(1) |
|
|
32 |
|
|
(134) |
|
|
— |
|
|
Interest expense - intercompany |
|
|
(31) |
|
|
— |
|
|
(103) |
|
|
134 |
|
|
— |
|
|
Interest expense, net |
|
|
(197) |
|
|
(4) |
|
|
(3) |
|
|
— |
|
|
(204) |
|
|
|
|
|
(123) |
|
|
2 |
|
|
10 |
|
|
— |
|
|
(111) |
|
|
Income (loss) before income and mining tax and other items |
|
|
(126) |
|
|
201 |
|
|
597 |
|
|
— |
|
|
672 |
|
|
Income and mining tax benefit (expense) |
|
|
44 |
|
|
(42) |
|
|
(557) |
|
|
— |
|
|
(555) |
|
|
Equity income (loss) of affiliates |
|
|
(200) |
|
|
(525) |
|
|
1 |
|
|
716 |
|
|
(8) |
|
|
Income (loss) from continuing operations |
|
|
(282) |
|
|
(366) |
|
|
41 |
|
|
716 |
|
|
109 |
|
|
Income (loss) from discontinued operations |
|
|
— |
|
|
— |
|
|
(225) |
|
|
— |
|
|
(225) |
|
|
Net income (loss) |
|
|
(282) |
|
|
(366) |
|
|
(184) |
|
|
716 |
|
|
(116) |
|
|
Net loss (income) attributable to noncontrolling interests |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing operations |
|
|
— |
|
|
— |
|
|
62 |
|
|
— |
|
|
62 |
|
|
Discontinued operations |
|
|
— |
|
|
— |
|
|
(229) |
|
|
— |
|
|
(229) |
|
|
|
|
|
— |
|
|
— |
|
|
(167) |
|
|
— |
|
|
(167) |
|
|
Net income (loss) attributable to Newmont stockholders |
|
$ |
(282) |
|
$ |
(366) |
|
$ |
(351) |
|
$ |
716 |
|
$ |
(283) |
|
|
Comprehensive income (loss) |
|
$ |
(251) |
|
$ |
(341) |
|
$ |
(184) |
|
$ |
692 |
|
$ |
(84) |
|
|
Comprehensive loss (income) attributable to noncontrolling interests |
|
|
— |
|
|
— |
|
|
(167) |
|
|
— |
|
|
(167) |
|
|
Comprehensive income (loss) attributable to Newmont stockholders |
|
$ |
(251) |
|
$ |
(341) |
|
$ |
(351) |
|
$ |
692 |
|
$ |
(251) |
|
|
(1) |
Excludes Depreciation and amortization and Reclamation and remediation. |
|
|
|
Nine Months Ended September 30, 2015 |
|
|||||||||||||
|
|
|
(Issuer) |
|
(Guarantor) |
|
(Non-Guarantor) |
|
|
|
Newmont |
|
|||||
|
|
|
Newmont |
|
|
|
|
|
|
|
Mining |
|
|||||
|
|
|
Mining |
|
Newmont |
|
Other |
|
|
|
Corporation |
|
|||||
|
Condensed Consolidating Statement of Operation |
|
Corporation |
|
USA |
|
Subsidiaries |
|
Eliminations |
|
Consolidated |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales |
|
$ |
— |
|
$ |
1,415 |
|
$ |
3,218 |
|
$ |
— |
|
$ |
4,633 |
|
|
Costs and expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs applicable to sales (1) |
|
|
— |
|
|
903 |
|
|
1,706 |
|
|
— |
|
|
2,609 |
|
|
Depreciation and amortization |
|
|
3 |
|
|
235 |
|
|
554 |
|
|
— |
|
|
792 |
|
|
Reclamation and remediation |
|
|
— |
|
|
10 |
|
|
55 |
|
|
— |
|
|
65 |
|
|
Exploration |
|
|
— |
|
|
22 |
|
|
93 |
|
|
— |
|
|
115 |
|
|
Advanced projects, research and development |
|
|
— |
|
|
9 |
|
|
78 |
|
|
— |
|
|
87 |
|
|
General and administrative |
|
|
— |
|
|
55 |
|
|
125 |
|
|
— |
|
|
180 |
|
|
Other expense, net |
|
|
— |
|
|
25 |
|
|
48 |
|
|
— |
|
|
73 |
|
|
|
|
|
3 |
|
|
1,259 |
|
|
2,659 |
|
|
— |
|
|
3,921 |
|
|
Other income (expense) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income, net |
|
|
(9) |
|
|
24 |
|
|
121 |
|
|
— |
|
|
136 |
|
|
Interest income - intercompany |
|
|
99 |
|
|
8 |
|
|
12 |
|
|
(119) |
|
|
— |
|
|
Interest expense - intercompany |
|
|
(11) |
|
|
— |
|
|
(108) |
|
|
119 |
|
|
— |
|
|
Interest expense, net |
|
|
(218) |
|
|
(4) |
|
|
(4) |
|
|
— |
|
|
(226) |
|
|
|
|
|
(139) |
|
|
28 |
|
|
21 |
|
|
— |
|
|
(90) |
|
|
Income (loss) before income and mining tax and other items |
|
|
(142) |
|
|
184 |
|
|
580 |
|
|
— |
|
|
622 |
|
|
Income and mining tax benefit (expense) |
|
|
50 |
|
|
(33) |
|
|
(319) |
|
|
— |
|
|
(302) |
|
|
Equity income (loss) of affiliates |
|
|
566 |
|
|
(84) |
|
|
40 |
|
|
(556) |
|
|
(34) |
|
|
Income (loss) from continuing operations |
|
|
474 |
|
|
67 |
|
|
301 |
|
|
(556) |
|
|
286 |
|
|
Income (loss) from discontinued operations |
|
|
— |
|
|
— |
|
|
376 |
|
|
— |
|
|
376 |
|
|
Net income (loss) |
|
|
474 |
|
|
67 |
|
|
677 |
|
|
(556) |
|
|
662 |
|
|
Net loss (income) attributable to noncontrolling interests |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing operations |
|
|
— |
|
|
— |
|
|
(11) |
|
|
— |
|
|
(11) |
|
|
Discontinued operations |
|
|
— |
|
|
— |
|
|
(250) |
|
|
73 |
|
|
(177) |
|
|
|
|
|
— |
|
|
— |
|
|
(261) |
|
|
73 |
|
|
(188) |
|
|
Net income (loss) attributable to Newmont stockholders |
|
$ |
474 |
|
$ |
67 |
|
$ |
416 |
|
$ |
(483) |
|
$ |
474 |
|
|
Comprehensive income (loss) |
|
$ |
563 |
|
$ |
116 |
|
$ |
707 |
|
$ |
(635) |
|
$ |
751 |
|
|
Comprehensive loss (income) attributable to noncontrolling interests |
|
|
— |
|
|
— |
|
|
(256) |
|
|
68 |
|
|
(188) |
|
|
Comprehensive income (loss) attributable to Newmont stockholders |
|
$ |
563 |
|
$ |
116 |
|
$ |
451 |
|
$ |
(567) |
|
$ |
563 |
|
|
(1) |
Excludes Depreciation and amortization and Reclamation and remediation. |
|
|
|
Nine Months Ended September 30, 2016 |
|
|||||||||||||
|
|
|
(Issuer) |
|
(Guarantor) |
|
(Non-Guarantor) |
|
|
|
|
Newmont |
|
||||
|
|
|
Newmont |
|
|
|
|
|
|
|
|
|
|
Mining |
|
||
|
|
|
Mining |
|
Newmont |
|
Other |
|
|
|
|
Corporation |
|
||||
|
Condensed Consolidating Statement of Cash Flows |
|
Corporation |
|
USA |
|
Subsidiaries |
|
Eliminations |
|
Consolidated |
|
|||||
|
Operating activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by operating activities of continuing operations |
|
$ |
775 |
|
$ |
453 |
|
$ |
961 |
|
$ |
(862) |
|
$ |
1,327 |
|
|
Net cash provided by operating activities of discontinued operations |
|
|
— |
|
|
— |
|
|
826 |
|
|
— |
|
|
826 |
|
|
Net cash provided by operating activities |
|
|
775 |
|
|
453 |
|
|
1,787 |
|
|
(862) |
|
|
2,153 |
|
|
Investing activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Additions to property, plant and mine development |
|
|
— |
|
|
(182) |
|
|
(650) |
|
|
— |
|
|
(832) |
|
|
Sales of investments |
|
|
— |
|
|
— |
|
|
184 |
|
|
— |
|
|
184 |
|
|
Sales of other assets |
|
|
— |
|
|
— |
|
|
8 |
|
|
— |
|
|
8 |
|
|
Other |
|
|
— |
|
|
— |
|
|
(21) |
|
|
— |
|
|
(21) |
|
|
Net cash used in investing activities of continuing operations |
|
|
— |
|
|
(182) |
|
|
(479) |
|
|
— |
|
|
(661) |
|
|
Net cash used in investing activities of discontinued operations |
|
|
— |
|
|
— |
|
|
(41) |
|
|
— |
|
|
(41) |
|
|
Net cash used in investing activities |
|
|
— |
|
|
(182) |
|
|
(520) |
|
|
— |
|
|
(702) |
|
|
Financing activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Repayment of debt |
|
|
(773) |
|
|
(2) |
|
|
(2) |
|
|
— |
|
|
(777) |
|
|
Net intercompany borrowings (repayments) |
|
|
39 |
|
|
(587) |
|
|
548 |
|
|
— |
|
|
— |
|
|
Funding from noncontrolling interests |
|
|
— |
|
|
— |
|
|
58 |
|
|
— |
|
|
58 |
|
|
Acquisition of noncontrolling interests |
|
|
— |
|
|
— |
|
|
(19) |
|
|
— |
|
|
(19) |
|
|
Dividends paid to noncontrolling interests |
|
|
— |
|
|
— |
|
|
(146) |
|
|
— |
|
|
(146) |
|
|
Dividends paid to common stockholders |
|
|
(41) |
|
|
(862) |
|
|
— |
|
|
862 |
|
|
(41) |
|
|
Other |
|
|
— |
|
|
— |
|
|
(1) |
|
|
— |
|
|
(1) |
|
|
Net cash (used in) provided by financing activities of continuing operations |
|
|
(775) |
|
|
(1,451) |
|
|
438 |
|
|
862 |
|
|
(926) |
|
|
Net cash (used in) provided by financing activities of discontinued operations |
|
|
— |
|
|
— |
|
|
(319) |
|
|
— |
|
|
(319) |
|
|
Net cash (used in) provided by financing activities |
|
|
(775) |
|
|
(1,451) |
|
|
119 |
|
|
862 |
|
|
(1,245) |
|
|
Effect of exchange rate changes on cash |
|
|
— |
|
|
— |
|
|
4 |
|
|
— |
|
|
4 |
|
|
Net change in cash and cash equivalents |
|
|
— |
|
|
(1,180) |
|
|
1,390 |
|
|
— |
|
|
210 |
|
|
Less net change in cash and cash equivalents in assets held for sale |
|
|
— |
|
|
— |
|
|
474 |
|
|
— |
|
|
474 |
|
|
|
|
|
— |
|
|
(1,180) |
|
|
916 |
|
|
— |
|
|
(264) |
|
|
Cash and cash equivalents at beginning of period |
|
|
— |
|
|
1,181 |
|
|
1,182 |
|
|
— |
|
|
2,363 |
|
|
Cash and cash equivalents at end of period |
|
$ |
— |
|
$ |
1 |
|
$ |
2,098 |
|
$ |
— |
|
$ |
2,099 |
|
|
|
|
Nine Months Ended September 30, 2015 |
|
|||||||||||||
|
|
|
(Issuer) |
|
(Guarantor) |
|
(Non-Guarantor) |
|
|
|
|
Newmont |
|
||||
|
|
|
Newmont |
|
|
|
|
|
|
|
|
|
|
Mining |
|
||
|
|
|
Mining |
|
Newmont |
|
Other |
|
|
|
|
Corporation |
|
||||
|
Condensed Consolidating Statement of Cash Flows |
|
Corporation |
|
USA |
|
Subsidiaries |
|
Eliminations |
|
Consolidated |
|
|||||
|
Operating activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by operating activities of continuing operations |
|
$ |
63 |
|
$ |
307 |
|
$ |
934 |
|
$ |
— |
|
$ |
1,304 |
|
|
Net cash provided by operating activities of discontinued operations |
|
|
— |
|
|
— |
|
|
569 |
|
|
— |
|
|
569 |
|
|
Net cash provided by operating activities |
|
|
63 |
|
|
307 |
|
|
1,503 |
|
|
— |
|
|
1,873 |
|
|
Investing activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Additions to property, plant and mine development |
|
|
— |
|
|
(241) |
|
|
(648) |
|
|
— |
|
|
(889) |
|
|
Acquisitions, net |
|
|
(821) |
|
|
— |
|
|
2 |
|
|
— |
|
|
(819) |
|
|
Sales of investments |
|
|
— |
|
|
25 |
|
|
4 |
|
|
— |
|
|
29 |
|
|
Sales of other assets |
|
|
— |
|
|
18 |
|
|
108 |
|
|
— |
|
|
126 |
|
|
Other |
|
|
— |
|
|
— |
|
|
(47) |
|
|
— |
|
|
(47) |
|
|
Net cash used in investing activities of continuing operations |
|
|
(821) |
|
|
(198) |
|
|
(581) |
|
|
— |
|
|
(1,600) |
|
|
Net cash used in investing activities of discontinued operations |
|
|
— |
|
|
— |
|
|
(52) |
|
|
— |
|
|
(52) |
|
|
Net cash used in investing activities |
|
|
(821) |
|
|
(198) |
|
|
(633) |
|
|
— |
|
|
(1,652) |
|
|
Financing activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Repayment of debt |
|
|
(200) |
|
|
(2) |
|
|
(25) |
|
|
— |
|
|
(227) |
|
|
Net intercompany borrowings (repayments) |
|
|
323 |
|
|
(81) |
|
|
(242) |
|
|
— |
|
|
— |
|
|
Proceeds from stock issuance, net |
|
|
675 |
|
|
— |
|
|
— |
|
|
— |
|
|
675 |
|
|
Sale of noncontrolling interests |
|
|
— |
|
|
3 |
|
|
34 |
|
|
— |
|
|
37 |
|
|
Funding from noncontrolling interests |
|
|
— |
|
|
— |
|
|
89 |
|
|
— |
|
|
89 |
|
|
Acquisition of noncontrolling interests |
|
|
— |
|
|
— |
|
|
(8) |
|
|
— |
|
|
(8) |
|
|
Dividends paid to noncontrolling interests |
|
|
— |
|
|
— |
|
|
(3) |
|
|
— |
|
|
(3) |
|
|
Dividends paid to common stockholders |
|
|
(38) |
|
|
— |
|
|
— |
|
|
— |
|
|
(38) |
|
|
Other |
|
|
(2) |
|
|
1 |
|
|
1 |
|
|
— |
|
|
— |
|
|
Net cash (used in) provided by financing activities of continuing operations |
|
|
758 |
|
|
(79) |
|
|
(154) |
|
|
— |
|
|
525 |
|
|
Net cash (used in) provided by financing activities of discontinued operations |
|
|
— |
|
|
— |
|
|
(164) |
|
|
— |
|
|
(164) |
|
|
Net cash (used in) provided by financing activities |
|
|
758 |
|
|
(79) |
|
|
(318) |
|
|
— |
|
|
361 |
|
|
Effect of exchange rate changes on cash |
|
|
— |
|
|
— |
|
|
(21) |
|
|
— |
|
|
(21) |
|
|
Net change in cash and cash equivalents |
|
|
— |
|
|
30 |
|
|
531 |
|
|
— |
|
|
561 |
|
|
Less net change in cash and cash equivalents in assets held for sale |
|
|
— |
|
|
— |
|
|
362 |
|
|
— |
|
|
362 |
|
|
|
|
|
— |
|
|
30 |
|
|
169 |
|
|
— |
|
|
199 |
|
|
Cash and cash equivalents at beginning of period |
|
|
— |
|
|
1,097 |
|
|
1,134 |
|
|
— |
|
|
2,231 |
|
|
Cash and cash equivalents at end of period |
|
$ |
— |
|
$ |
1,127 |
|
$ |
1,303 |
|
$ |
— |
|
$ |
2,430 |
|
|
|
|
At September 30, 2016 |
|
|||||||||||||
|
|
|
(Issuer) |
|
(Guarantor) |
|
(Non-Guarantor) |
|
|
|
|
Newmont |
|
||||
|
|
|
Newmont |
|
|
|
|
|
|
|
|
|
|
Mining |
|
||
|
|
|
Mining |
|
Newmont |
|
Other |
|
|
|
Corporation |
|
|||||
|
Condensed Consolidating Balance Sheet |
|
Corporation |
|
USA |
|
Subsidiaries |
|
Eliminations |
|
Consolidated |
|
|||||
|
Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
— |
|
$ |
1 |
|
$ |
2,098 |
|
$ |
— |
|
$ |
2,099 |
|
|
Trade receivables |
|
|
— |
|
|
38 |
|
|
103 |
|
|
— |
|
|
141 |
|
|
Other accounts receivables |
|
|
— |
|
|
18 |
|
|
134 |
|
|
— |
|
|
152 |
|
|
Intercompany receivable |
|
|
6,771 |
|
|
5,342 |
|
|
12,027 |
|
|
(24,140) |
|
|
— |
|
|
Investments |
|
|
— |
|
|
— |
|
|
80 |
|
|
— |
|
|
80 |
|
|
Inventories |
|
|
— |
|
|
165 |
|
|
444 |
|
|
— |
|
|
609 |
|
|
Stockpiles and ore on leach pads |
|
|
— |
|
|
245 |
|
|
540 |
|
|
— |
|
|
785 |
|
|
Other current assets |
|
|
— |
|
|
40 |
|
|
83 |
|
|
— |
|
|
123 |
|
|
Current assets held for sale |
|
|
— |
|
|
— |
|
|
3,124 |
|
|
— |
|
|
3,124 |
|
|
Current assets |
|
|
6,771 |
|
|
5,849 |
|
|
18,633 |
|
|
(24,140) |
|
|
7,113 |
|
|
Property, plant and mine development, net |
|
|
22 |
|
|
3,138 |
|
|
10,045 |
|
|
(35) |
|
|
13,170 |
|
|
Investments |
|
|
— |
|
|
15 |
|
|
224 |
|
|
— |
|
|
239 |
|
|
Investments in subsidiaries |
|
|
14,007 |
|
|
1,359 |
|
|
— |
|
|
(15,366) |
|
|
— |
|
|
Stockpiles and ore on leach pads |
|
|
— |
|
|
620 |
|
|
1,257 |
|
|
— |
|
|
1,877 |
|
|
Deferred income tax assets |
|
|
291 |
|
|
292 |
|
|
1,202 |
|
|
(490) |
|
|
1,295 |
|
|
Non-current intercompany receivable |
|
|
1,637 |
|
|
578 |
|
|
98 |
|
|
(2,313) |
|
|
— |
|
|
Other non-current assets |
|
|
— |
|
|
204 |
|
|
183 |
|
|
— |
|
|
387 |
|
|
Total assets |
|
$ |
22,728 |
|
$ |
12,055 |
|
$ |
31,642 |
|
$ |
(42,344) |
|
$ |
24,081 |
|
|
Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Debt |
|
$ |
555 |
|
$ |
3 |
|
$ |
6 |
|
$ |
— |
|
$ |
564 |
|
|
Accounts payable |
|
|
— |
|
|
58 |
|
|
246 |
|
|
— |
|
|
304 |
|
|
Intercompany payable |
|
|
6,379 |
|
|
4,724 |
|
|
13,037 |
|
|
(24,140) |
|
|
— |
|
|
Employee-related benefits |
|
|
— |
|
|
116 |
|
|
125 |
|
|
— |
|
|
241 |
|
|
Income and mining taxes |
|
|
— |
|
|
9 |
|
|
88 |
|
|
— |
|
|
97 |
|
|
Other current liabilities |
|
|
65 |
|
|
101 |
|
|
290 |
|
|
— |
|
|
456 |
|
|
Current liabilities held for sale |
|
|
— |
|
|
— |
|
|
874 |
|
|
— |
|
|
874 |
|
|
Current liabilities |
|
|
6,999 |
|
|
5,011 |
|
|
14,666 |
|
|
(24,140) |
|
|
2,536 |
|
|
Debt |
|
|
4,540 |
|
|
5 |
|
|
7 |
|
|
— |
|
|
4,552 |
|
|
Reclamation and remediation liabilities |
|
|
— |
|
|
238 |
|
|
1,349 |
|
|
— |
|
|
1,587 |
|
|
Deferred income tax liabilities |
|
|
5 |
|
|
87 |
|
|
961 |
|
|
(490) |
|
|
563 |
|
|
Employee-related benefits |
|
|
1 |
|
|
233 |
|
|
144 |
|
|
— |
|
|
378 |
|
|
Non-current intercompany payable |
|
|
81 |
|
|
— |
|
|
2,267 |
|
|
(2,348) |
|
|
— |
|
|
Other non-current liabilities |
|
|
— |
|
|
30 |
|
|
326 |
|
|
— |
|
|
356 |
|
|
Total liabilities |
|
|
11,626 |
|
|
5,604 |
|
|
19,720 |
|
|
(26,978) |
|
|
9,972 |
|
|
Equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Newmont stockholders’ equity |
|
|
11,102 |
|
|
6,451 |
|
|
8,915 |
|
|
(15,366) |
|
|
11,102 |
|
|
Noncontrolling interests |
|
|
— |
|
|
— |
|
|
3,007 |
|
|
— |
|
|
3,007 |
|
|
Total equity |
|
|
11,102 |
|
|
6,451 |
|
|
11,922 |
|
|
(15,366) |
|
|
14,109 |
|
|
Total liabilities and equity |
|
$ |
22,728 |
|
$ |
12,055 |
|
$ |
31,642 |
|
$ |
(42,344) |
|
$ |
24,081 |
|
|
|
|
At December 31, 2015 |
|
|||||||||||||
|
|
|
(Issuer) |
|
(Guarantor) |
|
(Non-Guarantor) |
|
|
|
Newmont |
|
|||||
|
|
|
Newmont |
|
|
|
|
|
|
|
Mining |
|
|||||
|
|
|
Mining |
|
Newmont |
|
Other |
|
|
|
Corporation |
|
|||||
|
Condensed Consolidating Balance Sheet |
|
Corporation |
|
USA |
|
Subsidiaries |
|
Eliminations |
|
Consolidated |
|
|||||
|
Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
— |
|
$ |
1,181 |
|
$ |
1,182 |
|
$ |
— |
|
$ |
2,363 |
|
|
Trade receivables |
|
|
— |
|
|
31 |
|
|
50 |
|
|
— |
|
|
81 |
|
|
Other accounts receivables |
|
|
— |
|
|
— |
|
|
134 |
|
|
— |
|
|
134 |
|
|
Intercompany receivable |
|
|
4,587 |
|
|
6,212 |
|
|
8,101 |
|
|
(18,900) |
|
|
— |
|
|
Investments |
|
|
— |
|
|
— |
|
|
19 |
|
|
— |
|
|
19 |
|
|
Inventories |
|
|
— |
|
|
158 |
|
|
403 |
|
|
— |
|
|
561 |
|
|
Stockpiles and ore on leach pads |
|
|
— |
|
|
201 |
|
|
581 |
|
|
— |
|
|
782 |
|
|
Other current assets |
|
|
— |
|
|
53 |
|
|
30 |
|
|
— |
|
|
83 |
|
|
Current assets held for sale |
|
|
— |
|
|
— |
|
|
960 |
|
|
— |
|
|
960 |
|
|
Current assets |
|
|
4,587 |
|
|
7,836 |
|
|
11,460 |
|
|
(18,900) |
|
|
4,983 |
|
|
Property, plant and mine development, net |
|
|
26 |
|
|
3,179 |
|
|
10,043 |
|
|
(38) |
|
|
13,210 |
|
|
Investments |
|
|
— |
|
|
15 |
|
|
387 |
|
|
— |
|
|
402 |
|
|
Investments in subsidiaries |
|
|
15,650 |
|
|
3,886 |
|
|
2,820 |
|
|
(22,356) |
|
|
— |
|
|
Stockpiles and ore on leach pads |
|
|
— |
|
|
621 |
|
|
1,275 |
|
|
— |
|
|
1,896 |
|
|
Deferred income tax assets |
|
|
223 |
|
|
757 |
|
|
1,222 |
|
|
(490) |
|
|
1,712 |
|
|
Non-current intercompany receivable |
|
|
1,742 |
|
|
434 |
|
|
108 |
|
|
(2,284) |
|
|
— |
|
|
Other non-current assets |
|
|
— |
|
|
253 |
|
|
192 |
|
|
— |
|
|
445 |
|
|
Non-current assets held for sale |
|
|
— |
|
|
— |
|
|
2,482 |
|
|
— |
|
|
2,482 |
|
|
Total assets |
|
$ |
22,228 |
|
$ |
16,981 |
|
$ |
29,989 |
|
$ |
(44,068) |
|
$ |
25,130 |
|
|
Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Debt |
|
$ |
— |
|
$ |
3 |
|
$ |
6 |
|
$ |
— |
|
$ |
9 |
|
|
Accounts payable |
|
|
— |
|
|
78 |
|
|
237 |
|
|
— |
|
|
315 |
|
|
Intercompany payable |
|
|
4,888 |
|
|
5,495 |
|
|
8,517 |
|
|
(18,900) |
|
|
— |
|
|
Employee-related benefits |
|
|
— |
|
|
136 |
|
|
142 |
|
|
— |
|
|
278 |
|
|
Income and mining taxes |
|
|
— |
|
|
— |
|
|
38 |
|
|
— |
|
|
38 |
|
|
Other current liabilities |
|
|
70 |
|
|
133 |
|
|
284 |
|
|
— |
|
|
487 |
|
|
Current liabilities held for sale |
|
|
— |
|
|
— |
|
|
289 |
|
|
— |
|
|
289 |
|
|
Current liabilities |
|
|
4,958 |
|
|
5,845 |
|
|
9,513 |
|
|
(18,900) |
|
|
1,416 |
|
|
Debt |
|
|
5,839 |
|
|
7 |
|
|
8 |
|
|
— |
|
|
5,854 |
|
|
Reclamation and remediation liabilities |
|
|
— |
|
|
231 |
|
|
1,324 |
|
|
— |
|
|
1,555 |
|
|
Deferred income tax liabilities |
|
|
— |
|
|
85 |
|
|
943 |
|
|
(490) |
|
|
538 |
|
|
Employee-related benefits |
|
|
— |
|
|
283 |
|
|
126 |
|
|
— |
|
|
409 |
|
|
Non-current intercompany payable |
|
|
81 |
|
|
— |
|
|
2,241 |
|
|
(2,322) |
|
|
— |
|
|
Other non-current liabilities |
|
|
— |
|
|
37 |
|
|
273 |
|
|
— |
|
|
310 |
|
|
Non-current liabilities held for sale |
|
|
— |
|
|
— |
|
|
756 |
|
|
— |
|
|
756 |
|
|
Total liabilities |
|
|
10,878 |
|
|
6,488 |
|
|
15,184 |
|
|
(21,712) |
|
|
10,838 |
|
|
Equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Newmont stockholders’ equity |
|
|
11,350 |
|
|
10,493 |
|
|
10,202 |
|
|
(20,695) |
|
|
11,350 |
|
|
Noncontrolling interests |
|
|
— |
|
|
— |
|
|
4,603 |
|
|
(1,661) |
|
|
2,942 |
|
|
Total equity |
|
|
11,350 |
|
|
10,493 |
|
|
14,805 |
|
|
(22,356) |
|
|
14,292 |
|
|
Total liabilities and equity |
|
$ |
22,228 |
|
$ |
16,981 |
|
$ |
29,989 |
|
$ |
(44,068) |
|
$ |
25,130 |
|
|
|||
NOTE 25 COMMITMENTS AND CONTINGENCIES
General
Estimated losses from contingencies are accrued by a charge to income when information available prior to issuance of the financial statements indicates that it is probable that a liability could be incurred and the amount of the loss can be reasonably estimated. Legal expenses associated with the contingency are expensed as incurred. If a loss contingency is not probable or reasonably estimable, disclosure of the contingency and estimated range of loss, if determinable, is made in the financial statements when it is at least reasonably possible that a material loss could be incurred.
Operating Segments
The Company’s operating and reportable segments are identified in Note 5. Except as noted in this paragraph, all of the Company’s commitments and contingencies specifically described herein are included in Corporate and Other. The Yanacocha matters relate to the South America reportable segment. The PTNNT matters relate to our discontinued operations that were previously included in the Asia Pacific reportable segment. See Note 3 for additional information. The Fronteer matters relate to the North America reportable segment.
Environmental Matters
The Company’s mining and exploration activities are subject to various laws and regulations governing the protection of the environment. These laws and regulations are continually changing and are generally becoming more restrictive. The Company conducts its operations so as to protect the public health and environment and believes its operations are in compliance with applicable laws and regulations in all material respects. The Company has made, and expects to make in the future, expenditures to comply with such laws and regulations, but cannot predict the full amount of such future expenditures.
Reclamation costs are allocated to expense over the life of the related assets and are periodically adjusted to reflect changes in the estimated present value resulting from the passage of time and revisions to the estimates of either the timing or amount of the reclamation costs. Reclamation obligations are based on when the spending for an existing environmental disturbance will occur. The Company reviews, on at least an annual basis, the reclamation obligation at each mine.
Accounting for reclamation obligations requires management to make estimates unique to each mining operation of the future costs the Company will incur to complete the reclamation work required to comply with existing laws and regulations. As mining operations progress over their mine life, the Company is able to more accurately predict the estimated future reclamation costs. Any such changes in future costs, the timing of reclamation activities, or scope could materially impact the amounts charged to earnings for reclamation. Additionally, future changes to environmental laws and regulations could increase the extent of reclamation work required.
In early 2015, the Peruvian government agency responsible for certain environmental regulations, the Ministry of the Environment (“MINAM”), issued proposed water quality criteria for designated beneficial uses which apply to mining companies, including Yanacocha. These criteria would modify the in-stream water quality criteria pursuant to which Yanacocha has been designing water treatment processes and infrastructure. In December 2015, MINAM issued the final regulation that modified the water quality standards and the Company has one year to submit a modification to the previously approved Environmental Impact Assessment which is due February 15, 2017. A total of up to four years are allowed for permitting, detailed engineering, and construction of water treatment facilities required for compliance with the new water quality standards. Yanacocha is currently assessing treatment options in connection with the new water quality standards, which are expected to result in increased costs. If Yanacocha is unsuccessful in designing, constructing and implementing effective treatment options in the next four years, it could result in potential fines and penalties relating to potential intermittent non-compliant exceedances.
The Company is also performing a comprehensive study of the current Yanacocha reclamation plan to update closure scope, timing and cost estimates while preserving optionality for potential future projects at Yanacocha. The Yanacocha closure study continued to progress the development of a revised reclamation plan during the third quarter of 2016 and is currently undergoing significant review and revision. As of September 30, 2016, the study team continued to evaluate and revise the assumptions and estimated costs of the potential changes to the closure plan with a focus on optimizing the approach to water treatment, earthworks, demolition and related support activities. The Company also continues to engage with communities and regulators in Peru to gather stakeholder feedback as the revised closure plan is developed and to ensure all regulatory requirements are met. In conjunction with the Company’s annual update process for all asset retirement obligations, the Company expects to record an adjustment to the Yanacocha reclamation liability in the fourth quarter of 2016 based on the planned progress of the closure study. The revised reclamation plan, once approved by management is expected to result in an increase in the reclamation obligation recorded at Yanacocha and this increase could be material. Additionally, increases in the future reclamation costs at Yanacocha could result in a significant impact to Income (loss) from continuing operations from a potential impairment of the Yanacocha long-lived assets based on the current mine plans.
For a complete discussion of the factors that influence our reclamation obligations and the associated risks, refer to Managements’ Discussion and Analysis of Consolidated Financial Condition and Results of Operations under the heading “Critical Accounting Policies” and refer to Risk Factors under the heading “Mine closure and remediation costs for environmental liabilities may exceed the provisions we have made” for the year ended December 31, 2015, filed February 17, 2016 on Form 10-K.
At September 30, 2016 and December 31, 2015, $1,349 and $1,300, respectively, were accrued for reclamation costs relating to currently or recently producing mineral properties in accordance with asset retirement obligation guidance. The current portions of $28 and $29 at September 30, 2016 and December 31, 2015, respectively, are included in Other current liabilities.
In addition, the Company is involved in several matters concerning environmental obligations associated with former mining activities. Generally, these matters concern developing and implementing remediation plans at the various sites involved. The Company believes that the related environmental obligations associated with these sites are similar in nature with respect to the development of remediation plans, their risk profile and the compliance required to meet general environmental standards. Based upon the Company’s best estimate of its liability for these matters, $300 and $318 were accrued for such obligations at September 30, 2016 and December 31, 2015, respectively. These amounts are included in Other current liabilities and Reclamation and remediation liabilities. Depending upon the ultimate resolution of these matters, the Company believes that it is reasonably possible that the liability for these matters could be as much as 46% greater or 1% lower than the amount accrued at September 30, 2016. The amounts accrued are reviewed periodically based upon facts and circumstances available at the time. Changes in estimates are recorded in Reclamation and remediation in the period estimates are revised.
Refer to Note 6 for further information regarding reclamation and remediation. Details about certain of the more significant matters are discussed below.
Newmont USA Limited - 100% Newmont Owned
Ross-Adams Mine Site. By letter dated June 5, 2007, the U.S. Forest Service (“USFS”) notified Newmont that it had expended approximately $0.3 in response costs to address environmental conditions at the Ross-Adams mine in Prince of Wales, Alaska, and requested Newmont USA Limited pay those costs and perform an Engineering Evaluation/Cost Analysis (“EE/CA”) to assess what future response activities might need to be completed at the site. Newmont agreed to perform the EE/CA, which has been provided to the USFS. During the first quarter of 2016, the USFS confirmed approval of the EE/CA, and Newmont issued written notice to the USFS certifying that all requirements of the Administrative Settlement Agreement and Order on Consent (“ASAOC”) between the USFS and Newmont have been completed. The ASAOC will be final upon USFS concurrence with the notice of completion and Newmont payment of USFS response costs. Newmont anticipates that the USFS will issue an Action Memorandum to select the preferred Removal Action alternative identified in the EE/CA. During the third quarter, Newmont received a notice of completion of work per the ASAOC from the USFS. Newmont is currently in discussion with the USFS about the next steps with regard to the Removal Action, which includes discussion of the response costs incurred thus far. The approach is to incorporate the past USFS costs as well as future USFS oversight costs into an agreement between Newmont and USFS to complete the Removal Action. The current discussions with USFS are and will be focused, during the fourth quarter of 2016, on the process to move forward with an Action Memorandum and an agreement between Newmont and USFS to complete the Removal Action now that the USFS has confirmed approval of the EE/CA. It is anticipated that the process to move forward will be clarified with the USFS during the fourth quarter. Any future liability associated with the Ross-Adams site would be subject to future negotiations with the USFS. Upon USFS issuing the Action Memorandum, Newmont will resume discussions with another potential responsible party to discuss possible allocation of future costs for implementing the remedy. No assurances can be made at this time with respect to the outcome of such negotiations and Newmont cannot predict the likelihood of additional expenditures related to this matter.
Dawn Mining Company LLC (“Dawn”) - 51% Newmont Owned
Midnite Mine Site and Mill Site. Dawn previously leased an open pit uranium mine, currently inactive, on the Spokane Indian Reservation in the State of Washington. The mine site is subject to regulation by agencies of the U.S. Department of Interior (the Bureau of Indian Affairs and the Bureau of Land Management), as well as the U.S. Environmental Protection Agency (“EPA”).
As per the Consent Decree approved by the U.S. District Court for the Eastern District of Washington on January 17, 2012, the following actions were required of Newmont, Dawn, the Department of the Interior and the EPA: (i) Newmont and Dawn would design, construct and implement the cleanup plan selected by the EPA in 2006 for the Midnite Mine site; (ii) Newmont and Dawn would reimburse the EPA for its costs associated with overseeing the work; (iii) the Department of the Interior would contribute a lump sum amount toward past EPA costs and future costs related to the cleanup of the Midnite Mine site; (iv) Newmont and Dawn would be responsible for all other EPA oversight costs and Midnite Mine site cleanup costs and (v) Newmont would post a surety bond for work at the site.
During 2012, the Department of Interior contributed its share of past EPA costs and future costs related to the cleanup of the Midnite Mine site in a lump sum payment of $42, which Newmont classified as restricted assets with interest on the consolidated balance sheets for all periods presented. Additionally in 2012, Newmont initiated the remedial design process and subsequently submitted interim process update reports at the 30% design, 60% design and 90% design level of completion, which were approved by the EPA in July 2012, April 2014 and April 2015, respectively. Upon approval by the EPA of the 90% design coupled with the resolution of uncertainties regarding site access and material use, the expected remediation design was reasonably certain and Newmont commissioned an independent cost estimate of the overall project costs based on the 90% design. The remediation liability for the Midnite Mine site and Mill site is approximately $209 at September 30, 2016.
Other Legal Matters
Minera Yanacocha S.R.L. - 51.35% Newmont Owned
Choropampa. In June 2000, a transport contractor of Yanacocha spilled approximately 151 kilograms of elemental mercury near the town of Choropampa, Peru, which is located 53 miles (85 kilometers) southwest of the Yanacocha mine. Elemental mercury is not used in Yanacocha’s operations but is a by-product of gold mining and was sold to a Lima firm for use in medical instruments and industrial applications. A comprehensive health and environmental remediation program was undertaken by Yanacocha in response to the incident. In August 2000, Yanacocha paid under protest a fine of 1,740,000 Peruvian soles (approximately $0.5) to the Peruvian government. Yanacocha has entered into settlement agreements with a number of individuals impacted by the incident. As compensation for the disruption and inconvenience caused by the incident, Yanacocha entered into agreements with and provided a variety of public works in the three communities impacted by this incident. Yanacocha cannot predict the likelihood of additional expenditures related to this matter.
Additional lawsuits relating to the Choropampa incident were filed against Yanacocha in the local courts of Cajamarca, Peru, in May 2002 by over 900 Peruvian citizens. A significant number of the plaintiffs in these lawsuits entered into settlement agreements with Yanacocha prior to filing such claims. In April 2008, the Peruvian Supreme Court upheld the validity of these settlement agreements, which the Company expects to result in the dismissal of all claims brought by previously settled plaintiffs. Yanacocha has also entered into settlement agreements with approximately 350 additional plaintiffs. The claims asserted by approximately 200 plaintiffs remain. In 2011, Yanacocha was served with 23 complaints alleging grounds to nullify the settlements entered into between Yanacocha and the plaintiffs. Yanacocha has answered the complaints and the court has dismissed several of the matters and the plaintiffs have filed appeals. All appeals were referred to the Civil Court of Cajamarca, which affirmed the decisions of the lower court judge. The plaintiffs have filed appeals of such orders before the Supreme Court. Some of these appeals were dismissed by the Supreme Court in favor of Yanacocha and others are pending resolution. Yanacocha will continue to vigorously defend its position. Neither the Company nor Yanacocha can reasonably estimate the ultimate loss relating to such claims.
Administrative Actions. The Peruvian government agency responsible for environmental evaluation and inspection, Organismo Evaluacion y Fiscalizacion Ambiental (“OEFA”), conducts periodic reviews of the Yanacocha site. In 2011, 2012, 2013, the first quarter of 2015 and second and third quarters of 2016, OEFA issued notices of alleged violations of OEFA standards to Yanacocha and Conga relating to past inspections. OEFA has resolved some alleged violations with minimal or no findings. Total fines for all outstanding OEFA alleged violations remain dependent upon the number of units associated with the alleged violations. In the first quarter of 2015, the water authority of Cajamarca issued notices of alleged regulatory violations. The alleged OEFA violations currently range from zero to 40,677 units and the water authority alleged violations range from zero to 20,000 units, with each unit having a potential fine equivalent to approximately $.00118 ($0 to $71). Yanacocha and Conga are responding to all notices of alleged violations, but cannot reasonably predict the outcome of the agency allegations.
Conga Project Constitutional Claim. On October 18, 2012, Marco Antonio Arana Zegarra filed a constitutional claim against the Ministry of Energy and Mines and Yanacocha requesting the Court to order the suspension of the Conga project as well as to declare not applicable the October 27, 2010, directorial resolution approving the Conga project Environmental Impact Assessment (“EIA”). On October 23, 2012, a Cajamarca judge dismissed the claims based on formal grounds finding that: (i) plaintiffs had not exhausted previous administrative proceedings; (ii) the directorial resolution approving the Conga EIA is valid, and was not challenged when issued in the administrative proceedings; (iii) there was inadequate evidence to conclude that the Conga project is a threat to the constitutional right of living in an adequate environment and; (iv) the directorial resolution approving the Conga project EIA does not guarantee that the Conga project will proceed, so there was no imminent threat to be addressed by the Court. The plaintiffs appealed the dismissal of the case. The Civil Court of the Superior Court of Cajamarca confirmed the above mentioned resolution and the plaintiff presented an appeal. On March 13, 2015, the Constitutional Court published its ruling stating that the case should be sent back to the first court with an order to formally admit the case and start the judicial process in order to review the claim and the proofs presented by the plaintiff. Yanacocha has answered the claim. Neither the Company nor Yanacocha can reasonably predict the outcome of this litigation.
Yanacocha Tax Dispute. In 2000, Yanacocha paid Buenaventura and Minas Conga S.R.L. a total of $29 to assume their respective contractual positions in mining concession agreements with Chaupiloma Dos de Cajamarca S.M.R.L. The contractual rights allowed Yanacocha the opportunity to conduct exploration on the concessions, but not a purchase of the concessions. The tax authority alleges that the payments to Buenaventura and Minas Conga S.R.L. were acquisitions of mining concessions requiring the amortization of the amounts under the Peru Mining Law over the life of the mine. Yanacocha expensed the amounts at issue in the initial year since the payments were not for the acquisition of a concession but rather these expenses represent the payment of an intangible and therefore, amortizable in a single year or proportionally for up to ten years according to Income Tax Law. In 2010, the tax court in Peru ruled in favor of Yanacocha and the tax authority appealed the issue to the judiciary. The first appellate court confirmed the ruling of the tax court in favor of Yanacocha. However, in November, 2015, a Superior Court in Peru made an appellate decision overturning the two prior findings in favor of Yanacocha. Yanacocha has appealed the Superior Court ruling to the Peru Supreme Court. The potential liability in this matter is in the form of fines and interest in an amount up to $75. While the Company has assessed that the likelihood of a ruling against Yanacocha in the Supreme Court as remote, it is not possible to fully predict the outcome of this litigation.
PT Newmont Nusa Tenggara – 31.5% Newmont Owned
Under the Batu Hijau Contract of Work, beginning in 2006 and continuing through 2010, a portion of PTNNT’s shares were required to be offered for sale, first, to the Indonesian government or, second, to Indonesian nationals, equal to the difference between the following percentages and the percentage of shares already owned by the Indonesian government or Indonesian nationals (if such number is positive): 23% by March 31, 2006; 30% by March 31, 2007; 37% by March 31, 2008; 44% by March 31, 2009; and 51% by March 31, 2010. As PTPI, an Indonesian national, owned a 20% interest in PTNNT at all relevant times, in 2006, a 3% interest was required to be offered for sale and, in each of 2007 through 2010, an additional 7% interest was required to be offered (for an aggregate 31% interest). The price at which such interests were offered for sale to the Indonesian parties was the fair market value of such interest considering PTNNT as a going concern, as agreed with the Indonesian government. Following certain disputes and an arbitration with the Indonesian government, in November and December 2009, sale agreements were concluded pursuant to which the 2006, 2007 and 2008 shares were sold to PT Multi Daerah Bersaing (“PTMDB”), the nominee of the local governments, and the 2009 shares were sold to PTMDB in February 2010, resulting in PTMDB owning a 24% interest in PTNNT.
On December 17, 2010, the Ministry of Energy & Mineral Resources, acting on behalf of the Indonesian government, accepted the offer to acquire the final 7% interest in PTNNT. Subsequently, the Indonesian government designated Pusat Investasi Pemerintah (“PIP”), an agency of the Ministry of Finance, as the entity that will buy the final stake. On May 6, 2011, PIP and the foreign shareholders entered into a definitive agreement for the sale and purchase of the final 7% divestiture stake, subject to receipt of approvals from certain Indonesian government ministries. Subsequent to signing the agreement, a disagreement arose between the Ministry of Finance and the Indonesian parliament in regard to whether parliamentary approval was needed to allow PIP to make the share purchase. In July 2012, the Constitutional Court ruled that parliament approval is required for PIP to use state funds to purchase the shares, which approval was never obtained. PIP and the foreign shareholders have not further extended the period in the definitive agreement for satisfaction of the conditions. Further disputes may arise in regard to the divestiture of the 2010 shares.
Refer to Note 3 for additional information regarding the anticipated sale of PTNNT.
NWG Investments Inc. v. Fronteer Gold Inc.
In April 2011, Newmont acquired Fronteer Gold Inc. (“Fronteer”).
Fronteer acquired NewWest Gold Corporation (“NewWest Gold”) in September 2007. At the time of that acquisition, NWG Investments Inc. (“NWG”) owned approximately 86% of NewWest Gold and an individual named Jacob Safra owned or controlled 100% of NWG. Prior to its acquisition of NewWest Gold, Fronteer entered into a June 2007 lock-up agreement with NWG providing that, among other things, NWG would support Fronteer’s acquisition of NewWest Gold. At that time, Fronteer owned approximately 47% of Aurora Energy Resources Inc. (“Aurora”), which, among other things, had a uranium exploration project in Labrador, Canada.
NWG contends that, during the negotiations leading up to the lock-up agreement, Fronteer represented to NWG, among other things, that Aurora would commence uranium mining in Labrador by 2013, that this was a firm date, that Aurora faced no current environmental issues in Labrador and that Aurora’s competitors faced delays in commencing uranium mining. NWG further contends that it entered into the lock-up agreement and agreed to support Fronteer’s acquisition of NewWest Gold in reliance upon these purported representations. On October 11, 2007, less than three weeks after the Fronteer-NewWest Gold transaction closed, a member of the Nunatsiavut Assembly introduced a motion calling for the adoption of a moratorium on uranium mining in Labrador. On April 8, 2008, the Nunatsiavut Assembly adopted a three-year moratorium on uranium mining in Labrador. NWG contends that Fronteer was aware during the negotiations of the NWG/Fronteer lock-up agreement that the Nunatsiavut Assembly planned on adopting this moratorium and that its adoption would preclude Aurora from commencing uranium mining by 2013, but Fronteer nonetheless fraudulently induced NWG to enter into the lock-up agreement.
On September 24, 2012, NWG served a summons and complaint on the Company, and then amended the complaint to add Newmont Canada Holdings ULC as a defendant. The complaint also named Fronteer Gold Inc. and Mark O’Dea as defendants. The complaint sought rescission of the merger between Fronteer and NewWest Gold and $750 in damages. In August 2013 the Supreme Court of New York, New York County issued an order granting the defendants’ motion to dismiss on forum non conveniens. Subsequently, NWG filed a notice of appeal of the decision and then a notice of dismissal of the appeal on March 24, 2014.
On February 26, 2014, NWG filed a lawsuit in Ontario Superior Court of Justice against Fronteer Gold Inc., Newmont Mining Corporation, Newmont Canada Holdings ULC, Newmont FH B.V. and Mark O’Dea. The Ontario complaint is based upon substantially the same allegations contained in the New York lawsuit with claims for fraudulent and negligent misrepresentation. NWG seeks disgorgement of profits since the close of the NWG deal on September 24, 2007 and damages in the amount of C$1.2 billion. Newmont, along with other defendants, served the plaintiff with its statement of defense on October 17, 2014. Newmont intends to vigorously defend this matter, but cannot reasonably predict the outcome.
Investigations
We occasionally identify or are apprised of information or allegations that certain employees, affiliates, agents or associated persons may have engaged in unlawful conduct for which we might be held responsible. We are conducting an investigation, with the assistance of outside counsel, relating to certain business activities of the Company and its affiliates and contractors in countries outside the U.S. The investigation includes a review of compliance with the requirements of the U.S. Foreign Corrupt Practices Act and other applicable laws and regulations. The Company is working with the U.S. Securities and Exchange Commission and the U.S. Department of Justice with respect to the investigation. In March 2016, the Company entered into a one-year agreement with the U.S. Securities and Exchange Commission tolling the statute of limitations relating to the investigation, and in April 2016, entered into a similar agreement with the U.S. Department of Justice. Both of the initial tolling agreements were effective through October 29, 2016. In September 2016, the Company agreed to extend its tolling agreement with the Department of Justice through April 2017, and agreed to a similar extension with the Securities and Exchange Commission in October 2016. As of the filing of these financial statements, we cannot predict the outcome of these matters. Accordingly, no provision with respect to these matters has been made in our consolidated financial statements. See also Item 1A of the Company’s most recent Form 10-K, filed with the SEC on February 17, 2016, under the heading “Our business is subject to the U.S. Foreign Corrupt Practices Act and other extraterritorial and domestic anti-bribery laws, a breach or violation of which could lead to civil and criminal fines and penalties, loss of licenses or permits and other collateral consequences and reputational harm.”
Other Commitments and Contingencies
The Company has minimum royalty obligations on one of its producing mines in Nevada for the life of the mine. Amounts paid as a minimum royalty (where production royalties are less than the minimum obligation) in any year are recoverable in future years when the minimum royalty obligation is exceeded. Although the minimum royalty requirement may not be met in a particular year, the Company expects that over the mine life, gold production will be sufficient to meet the minimum royalty requirements. Royalty payments payable, net of recoverable amounts, are $28 in 2016, $30 in 2017, $30 in 2018, $31 in 2019, $33 in 2020 and $69 thereafter.
On June 25, 2009, the Company completed the acquisition of the remaining 33.33% interest in Boddington from AngloGold Ashanti Australia Limited (“AngloGold”). Consideration for the acquisition consisted of $982 and a contingent royalty capped at $100, equal to 50% of the average realized operating margin (Revenue less Costs applicable to sales on a by-product basis), if any, exceeding $600 per ounce, payable quarterly beginning in the second quarter of 2010 on one-third of gold sales from Boddington. At the acquisition date, the Company estimated the fair value of the contingent consideration at $62. At September 30, 2016 and December 31, 2015, the estimated fair value of the unpaid contingent consideration was approximately $21 and $10, respectively. Changes to the estimated fair value resulting from periodic revaluations are recorded to Other expense, net. This contingent royalty is capped at $100 in aggregate payments, of which $72 has been paid to date. The Company has made no payments during 2016 and 2015; however, the Company expects to pay $10 in the next 12 months. The range of remaining undiscounted amounts the Company could pay is between $0 and $28.
As part of its ongoing business and operations, the Company and its affiliates are required to provide surety bonds, bank letters of credit and bank guarantees as financial support for various purposes, including environmental reclamation, exploration permitting, workers compensation programs and other general corporate purposes. At September 30, 2016 and December 31, 2015, there were $2,168 and $2,060, respectively, of outstanding letters of credit, surety bonds and bank guarantees. The surety bonds, letters of credit and bank guarantees reflect fair value as a condition of their underlying purpose and are subject to fees competitively determined in the market place. The obligations associated with these instruments are generally related to performance requirements that the Company addresses through its ongoing operations. As the specific requirements are met, the beneficiary of the associated instrument cancels and/or returns the instrument to the issuing entity. Certain of these instruments are associated with operating sites with long-lived assets and will remain outstanding until closure. Generally, bonding requirements associated with environmental regulation are becoming more restrictive. However, the Company believes it is in compliance with all applicable bonding obligations and will be able to satisfy future bonding requirements through existing or alternative means, as they arise.
Newmont is from time to time involved in various legal proceedings related to its business. Except in the above described proceedings, management does not believe that adverse decisions in any pending or threatened proceeding or that amounts that may be required to be paid by reason thereof will have a material adverse effect on the Company’s financial condition or results of operations.
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Risks and Uncertainties
As a global mining company, the Company’s revenue, profitability and future rate of growth are substantially dependent on prevailing prices for gold, copper and, to a lesser extent, silver. Historically, the commodity markets have been very volatile and there can be no assurance that commodity prices will not be subject to wide fluctuations in the future. A substantial or extended decline in commodity prices could have a material adverse effect on the Company’s financial position, results of operations, cash flows, access to capital and the quantities of reserves that the Company can economically produce. The carrying value of the Company’s Property, plant and mine development, net; Inventories; Stockpiles and ore on leach pads and Deferred income tax assets are sensitive to the outlook for commodity prices. A decline in the Company’s long-term price outlook from current levels could result in material impairment charges related to these assets.
On June 30, 2016, the Company, through its subsidiaries, entered into agreements to sell its 48.5% economic interest in PTNNT, which operates the Batu Hijau copper and gold mine in Indonesia. The closing of the sale is subject to various closing conditions, several of which were met during the third quarter of 2016. Certain closing conditions remain outstanding and while the Company expects it is probable that those conditions will be successfully satisfied and the transaction will close in the fourth quarter of 2016, some of the remaining closing conditions are outside the control of the Company, and if not satisfied could result in the sale of PTNNT not being completed. See Note 3 below for a detailed description of the progress made resolving closing conditions during the third quarter of 2016.
In September 2014, PTNNT and the Government of Indonesia signed a Memorandum of Understanding (“MoU”) that resulted in the government agreeing to issue permits to allow PTNNT to export and sell copper concentrates from the Batu Hijau mine. The government has issued several six-month export permits since then, with the most recent permit expected to expire in November 2016. Additionally, negotiations between PTNNT and the Government of Indonesia to amend the Contract of Work (the investment agreement entered into by PTNNT and the Indonesian government in 1986, which includes the right to export copper concentrates and a prohibition against new taxes, duties, and levies) remained on-going at the time that the Company entered into the agreement to sell its interest in PTNNT. In the event that the sale of the Company’s interest in PTNNT does not close prior to November 2016 or does not close at all, no assurances can be made with respect to the outcome of the Contract of Work negotiations and the renewal of the export permit. The failure to receive a timely renewal may negatively impact future operations and financial results at Batu Hijau. As a result of the on-going Contract of Work renegotiations at Batu Hijau, the need for asset impairments, inventory write-downs, tax valuation allowances and other applicable accounting charges will continue to be evaluated. At this time, the Company expects operations to continue into the future until the previously announced sale closes.
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the accounting for and recognition and disclosure of assets, liabilities, equity, revenues and expenses. The Company must make these estimates and assumptions because certain information used is dependent on future events, cannot be calculated with a high degree of precision from data available or simply cannot be readily calculated based on generally accepted methodologies. Actual results could differ from these estimates.
Assets Held for Sale and Discontinued Operations
The Company reports a business as held for sale when management has approved or received approval to sell the business and is committed to a formal plan, the business is available for immediate sale, the business is being actively marketed, the sale is probable and recognition of a completed sale is expected to occur within one year, the sales price is reasonable in relation to its current fair value and actions required to complete the sale indicate that it is unlikely that significant changes to the plan will be made or the plan will be withdrawn, in accordance with Accounting Standard Codification (“ASC”) 360, Property, Plant and Equipment. A business classified as held for sale is recorded at the lower of its carrying amount or estimated fair value less cost to sell. If the carrying amount of the business exceeds its estimated fair value less cost to sell, a loss is recognized. Assets and liabilities related to a business classified as held for sale are segregated in the current and prior balance sheets in the period in which the business is classified as held for sale. If a business is classified as held for sale after the balance sheet date but before the financial statements are issued or are available to be issued, the business continues to be classified as held and used in those financial statements when issued or when available to be issued.
The Company reports the results of operations of a business as discontinued operations if a disposal represents a strategic shift that has (or will have) a major effect on an entity’s operations and financial results when the business is classified as held for sale, in accordance with ASC 360, Property, Plant and Equipment and ASC 205-20, Presentation of Financial Statements - Discontinued Operations. The results of discontinued operations are reported in Net income (loss) from discontinued operations, net of tax in the accompanying Condensed Consolidated Statements of Operations for current and prior periods, including any gain or loss recognized on closing or adjustment of the carrying amount to fair value less cost to sell.
Recently Adopted Accounting Pronouncements
Employee benefit plan accounting
In July 2015, the Financial Accounting Standards Board issued ASU No. 2015-12 related to defined benefit pension plans, defined contribution pension plans and health and welfare benefit plans. This update designates contract value as the only required measure for fully benefit-responsive investment contracts, simplifies and makes more effective the investment disclosure requirements for employee benefit plans and provides a simplified method for determining the measurement date for employee benefit plans. The update is effective in fiscal years, including interim periods, beginning after December 15, 2015. Adoption of this guidance, effective January 1, 2016, had no impact on the Consolidated Financial Statements or disclosures.
Fair value measurement
In May 2015, ASU No. 2015-07 was issued related to investments for which fair value is measured, or is eligible to be measured, using the net asset value per share practical expedient. This update removes the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the net asset value per share practical expedient. The amendment also removes certain disclosure requirements for these investments. This update will impact the annual disclosure related to pension plan assets measured at fair value. This update is effective in fiscal years, including interim periods, beginning after December 15, 2015. Adoption of this guidance, effective January 1, 2016, had no impact on the Consolidated Financial Statements.
Debt issuance costs
In April 2015, ASU No. 2015-03 was issued related to debt issuance costs. This update simplifies the presentation of debt issuance costs by requiring debt issuance costs to be presented as a deduction from the corresponding debt liability. The update is effective in fiscal years, including interim periods, beginning after December 15, 2015. The Company retrospectively adopted this guidance as of March 31, 2016. The Company reclassified $41 of debt issuance costs from Other non-current assets to Debt as of December 31, 2015. The December 31, 2015, balance sheet was adjusted as a result of the adoption of ASU 2015-03 as follows:
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At December 31, 2015 |
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|
|
|
As Reported |
|
As Adjusted |
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||
|
Other non-current assets |
|
$ |
486 |
|
$ |
445 |
|
|
Debt (non-current) |
|
$ |
5,895 |
|
$ |
5,854 |
|
ASU No. 2015-03 does not specifically address the accounting for deferred financing costs related to line-of-credit arrangements. In August 2015, ASU No. 2015-15 was issued allowing for debt issuance costs associated with line-of-credit arrangements to continue to be presented as assets. The Company will treat all debt issuance costs as a reduction to the carrying value of debt.
Consolidations
In February 2015, ASU No. 2015-02 was issued related to consolidations. This update makes some targeted changes to current consolidation guidance and impacts both the voting and the variable interest consolidation models. In particular, the update changes how companies determine whether limited partnerships or similar entities are variable interest entities. The update is effective in fiscal years, including interim periods, beginning after December 15, 2015. The Company currently consolidates certain variable interest entities. Adoption of this guidance, effective January 1, 2016, had no impact on the Consolidated Financial Statements or disclosures.
Recently Issued Accounting Pronouncements
Statement of Cash Flows
In August 2016, ASU No. 2016-15 was issued related to the statement of cash flows. This new guidance addresses eight specific cash flow issues with the objective of reducing the existing diversity in practice in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. This update is effective in fiscal years, including interim periods, beginning after December 15, 2017 and early adoption is permitted. The Company is currently evaluating this guidance and the impact it will have on the Consolidated Financial Statements and disclosures.
Stock-based compensation
In March 2016, ASU No. 2016-09 was issued related to stock-based compensation. The new guidance simplifies the accounting for stock-based compensation transactions, including income tax consequences, classification of awards as either equity or liabilities and classification on the statement of cash flows. This update is effective in fiscal years, including interim periods, beginning after December 15, 2016, and early adoption is permitted. The Company does not expect the updated guidance to have a material impact on the Consolidated Financial Statements and disclosures.
Leases
In February 2016, ASU No. 2016-02 was issued related to leases. The new guidance modifies the classification criteria and requires lessees to recognize the assets and liabilities arising from most leases on the balance sheet. This update is effective in fiscal years, including interim periods, beginning after December 15, 2018, and early adoption is permitted. The Company is currently evaluating this guidance and the impact it will have on the Consolidated Financial Statements and disclosures.
Investments
In January 2016, ASU No. 2016-01 was issued related to financial instruments. The new guidance requires entities to measure equity investments that do not result in consolidation and are not accounted for under the equity method at fair value and recognize any changes in fair value in net income. This new guidance also updates certain disclosure requirements for these investments. This update is effective in fiscal years, including interim periods, beginning after December 15, 2017, and early adoption is not permitted. The Company does not expect the updated guidance to have a material impact on the Consolidated Financial Statements and disclosures.
Inventory
In July 2015, ASU No. 2015-11 was issued related to inventory, simplifying the subsequent measurement of inventories by replacing the lower of cost or market test with a lower of cost and net realizable value test. The update is effective in fiscal years, including interim periods, beginning after December 15, 2016, and early adoption is permitted. The Company does not expect the updated guidance to have an impact on the Consolidated Financial Statements or disclosures.
Revenue recognition
In May 2014, ASU No. 2014-09 was issued related to revenue from contracts with customers. This ASU was further amended in August 2015, March 2016, April 2016 and May 2016 by ASU No. 2015-14, No. 2016-08, No. 2016-10 and No. 2016-12, respectively. The new standard provides a five-step approach to be applied to all contracts with customers and also requires expanded disclosures about revenue recognition. In August 2015, the effective date was deferred to reporting periods, including interim periods, beginning after December 15, 2017, and will be applied retrospectively. Early adoption is not permitted. The Company is currently evaluating this guidance and the impact it will have on the Consolidated Financial Statements and disclosures.
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At December 31, 2015 |
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As Reported |
|
As Adjusted |
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||
|
Other non-current assets |
|
$ |
486 |
|
$ |
445 |
|
|
Debt (non-current) |
|
$ |
5,895 |
|
$ |
5,854 |
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Three Months Ended |
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Nine Months Ended |
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|
September 30, |
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September 30, |
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|
|
2016 |
|
2015 |
|
2016 |
|
2015 |
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||||
|
Holt property royalty obligation |
|
$ |
(19) |
|
$ |
17 |
|
$ |
(72) |
|
$ |
34 |
|
|
Batu Hijau operations |
|
|
148 |
|
|
109 |
|
|
424 |
|
|
342 |
|
|
Loss on classification as held for sale |
|
|
(577) |
|
|
— |
|
|
(577) |
|
|
— |
|
|
Net income (loss) from discontinued operations, net of tax |
|
$ |
(448) |
|
$ |
126 |
|
$ |
(225) |
|
$ |
376 |
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
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|
|
September 30, |
|
September 30, |
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||||||||
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|
|
2016 |
|
2015 |
|
2016 |
|
2015 |
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||||
|
Sales |
|
$ |
469 |
|
$ |
473 |
|
$ |
1,408 |
|
$ |
1,280 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs and expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs applicable to sales (1) |
|
|
184 |
|
|
220 |
|
|
571 |
|
|
589 |
|
|
Depreciation and amortization |
|
|
36 |
|
|
39 |
|
|
115 |
|
|
104 |
|
|
Reclamation and remediation |
|
|
4 |
|
|
3 |
|
|
13 |
|
|
9 |
|
|
Advanced projects, research and development |
|
|
1 |
|
|
1 |
|
|
2 |
|
|
6 |
|
|
General and administrative |
|
|
2 |
|
|
1 |
|
|
8 |
|
|
5 |
|
|
Other expense (income), net |
|
|
(1) |
|
|
3 |
|
|
2 |
|
|
9 |
|
|
|
|
|
226 |
|
|
267 |
|
|
711 |
|
|
722 |
|
|
Interest expense, net |
|
|
(5) |
|
|
(7) |
|
|
(15) |
|
|
(22) |
|
|
Income (loss) before income and mining tax and other items |
|
|
238 |
|
|
199 |
|
|
682 |
|
|
536 |
|
|
Income and mining tax benefit (expense) |
|
|
(90) |
|
|
(90) |
|
|
(258) |
|
|
(194) |
|
|
Net income (loss) from discontinued operations |
|
|
148 |
|
|
109 |
|
|
424 |
|
|
342 |
|
|
Loss on classification as held for sale, net of tax |
|
|
(577) |
|
|
— |
|
|
(577) |
|
|
— |
|
|
|
|
|
(429) |
|
|
109 |
|
|
(153) |
|
|
342 |
|
|
Net loss (income) attributable to noncontrolling interests, net of tax |
|
|
(79) |
|
|
(66) |
|
|
(229) |
|
|
(177) |
|
|
Net income (loss) from discontinued operations attributable to Newmont stockholders |
|
$ |
(508) |
|
$ |
43 |
|
$ |
(382) |
|
$ |
165 |
|
|
(1) |
Excludes Depreciation and amortization and Reclamation and remediation. |
The consolidated statements of comprehensive income (loss) were not impacted by discontinued operations as PTNNT did not have any other comprehensive income (loss).
Cash flows from Batu Hijau consist of the following:
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|
|
Nine Months Ended |
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|
|
|
September 30, |
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||||
|
|
|
2016 |
|
2015 |
|
||
|
Net cash provided by operating activities |
|
$ |
834 |
|
$ |
578 |
|
|
Net cash used in investing activities |
|
|
(41) |
|
|
(52) |
|
|
Net cash used in financing activities |
|
|
(319) |
|
|
(164) |
|
|
Increase in cash and equivalents in assets held for sale |
|
$ |
474 |
|
$ |
362 |
|
The carrying amounts of Batu Hijau’s (i) major classes of assets and liabilities, which are presented as held for sale, and (ii) non-controlling interests in the Condensed Consolidated Balance Sheets, are as follows:
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At September 30, |
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At December 31, |
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|
|
|
2016 |
|
2015 |
|
||
|
Assets |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
893 |
|
$ |
419 |
|
|
Trade receivables |
|
|
95 |
|
|
179 |
|
|
Inventories |
|
|
170 |
|
|
149 |
|
|
Property, plant and mine development, net |
|
|
994 |
|
|
— |
|
|
Stockpiles and ore on leach pads |
|
|
1,114 |
|
|
114 |
|
|
Other current assets (1) |
|
|
435 |
|
|
99 |
|
|
|
|
|
3,701 |
|
|
960 |
|
|
Loss recognized on classification as held for sale |
|
|
(577) |
|
|
— |
|
|
Current assets held for sale |
|
$ |
3,124 |
|
$ |
960 |
|
|
|
|
|
|
|
|
|
|
|
Property, plant and mine development, net |
|
$ |
— |
|
$ |
1,093 |
|
|
Stockpiles and ore on leach pads |
|
|
— |
|
|
1,104 |
|
|
Other non-current assets |
|
|
— |
|
|
285 |
|
|
Non-current assets held for sale |
|
$ |
— |
|
$ |
2,482 |
|
|
|
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
|
|
Debt |
|
$ |
1 |
|
$ |
140 |
|
|
Accounts payable |
|
|
43 |
|
|
81 |
|
|
Employee-related benefits |
|
|
49 |
|
|
15 |
|
|
Income and mining taxes payable |
|
|
97 |
|
|
— |
|
|
Reclamation and remediation liabilities |
|
|
261 |
|
|
— |
|
|
Deferred income tax liabilities |
|
|
385 |
|
|
— |
|
|
Other current liabilities |
|
|
38 |
|
|
53 |
|
|
Current liabilities held for sale |
|
$ |
874 |
|
$ |
289 |
|
|
|
|
|
|
|
|
|
|
|
Debt |
|
$ |
— |
|
$ |
187 |
|
|
Reclamation and remediation liabilities |
|
|
— |
|
|
245 |
|
|
Deferred income tax liabilities |
|
|
— |
|
|
296 |
|
|
Employee-related benefits |
|
|
— |
|
|
28 |
|
|
Non-current liabilities held for sale |
|
$ |
— |
|
$ |
756 |
|
|
|
|
|
|
|
|
|
|
|
Noncontrolling interests |
|
$ |
1,345 |
|
$ |
1,135 |
|
|
(1) |
Other current assets include income tax receivables, other accounts receivable, prepaid assets, restricted assets and other current assets. In addition, there was $29 and $15 in Other current assets for settling reclamation obligations at September 30, 2016 and December 31, 2015, respectively. |
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Advanced |
|
Income (Loss) |
|
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|
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|
|
|
|
|
|
Costs |
|
Depreciation |
|
Projects, Research |
|
before Income |
|
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|
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|
|
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|
|
|
Applicable |
|
and |
|
and Development |
|
and Mining Tax |
|
Capital |
|||||
|
|
|
Sales |
|
to Sales |
|
Amortization |
|
and Exploration |
|
and Other Items |
|
Expenditures(1) |
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|
Three Months Ended September 30, 2016 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Carlin |
|
$ |
362 |
|
$ |
212 |
|
$ |
51 |
|
$ |
7 |
|
$ |
91 |
|
$ |
37 |
|
Phoenix: |
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|
|
|
|
|
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|
|
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|
|
|
|
|
|
|
Gold |
|
|
61 |
|
|
30 |
|
|
10 |
|
|
|
|
|
|
|
|
|
|
Copper |
|
|
20 |
|
|
32 |
|
|
8 |
|
|
|
|
|
|
|
|
|
|
Total Phoenix |
|
|
81 |
|
|
62 |
|
|
18 |
|
|
— |
|
|
(2) |
|
|
8 |
|
Twin Creeks |
|
|
129 |
|
|
52 |
|
|
10 |
|
|
2 |
|
|
64 |
|
|
9 |
|
Long Canyon |
|
|
— |
|
|
— |
|
|
— |
|
|
4 |
|
|
(4) |
|
|
28 |
|
CC&V |
|
|
152 |
|
|
65 |
|
|
32 |
|
|
3 |
|
|
50 |
|
|
13 |
|
Other North America |
|
|
— |
|
|
— |
|
|
1 |
|
|
3 |
|
|
2 |
|
|
1 |
|
North America |
|
|
724 |
|
|
391 |
|
|
112 |
|
|
19 |
|
|
201 |
|
|
96 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Yanacocha |
|
|
195 |
|
|
148 |
|
|
92 |
|
|
6 |
|
|
(66) |
|
|
26 |
|
Merian |
|
|
— |
|
|
— |
|
|
— |
|
|
7 |
|
|
(8) |
|
|
60 |
|
Other South America |
|
|
— |
|
|
— |
|
|
3 |
|
|
8 |
|
|
(13) |
|
|
— |
|
South America |
|
|
195 |
|
|
148 |
|
|
95 |
|
|
21 |
|
|
(87) |
|
|
86 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Boddington: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gold |
|
|
287 |
|
|
139 |
|
|
30 |
|
|
|
|
|
|
|
|
|
|
Copper |
|
|
43 |
|
|
33 |
|
|
6 |
|
|
|
|
|
|
|
|
|
|
Total Boddington |
|
|
330 |
|
|
172 |
|
|
36 |
|
|
— |
|
|
106 |
|
|
17 |
|
Tanami |
|
|
151 |
|
|
57 |
|
|
20 |
|
|
4 |
|
|
70 |
|
|
36 |
|
Kalgoorlie |
|
|
120 |
|
|
57 |
|
|
5 |
|
|
1 |
|
|
56 |
|
|
5 |
|
Other Asia Pacific |
|
|
— |
|
|
— |
|
|
1 |
|
|
2 |
|
|
(13) |
|
|
— |
|
Asia Pacific |
|
|
601 |
|
|
286 |
|
|
62 |
|
|
7 |
|
|
219 |
|
|
58 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ahafo |
|
|
115 |
|
|
95 |
|
|
30 |
|
|
8 |
|
|
(20) |
|
|
22 |
|
Akyem |
|
|
156 |
|
|
63 |
|
|
32 |
|
|
4 |
|
|
56 |
|
|
5 |
|
Other Africa |
|
|
— |
|
|
— |
|
|
1 |
|
|
1 |
|
|
(3) |
|
|
— |
|
Africa |
|
|
271 |
|
|
158 |
|
|
63 |
|
|
13 |
|
|
33 |
|
|
27 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate and Other |
|
|
— |
|
|
— |
|
|
3 |
|
|
13 |
|
|
(143) |
|
|
2 |
|
Consolidated |
|
$ |
1,791 |
|
$ |
983 |
|
$ |
335 |
|
$ |
73 |
|
$ |
223 |
|
$ |
269 |
|
(1) |
There was no change to accrued capital expenditures; consolidated capital expenditures on a cash basis were $269. |
|
|
|
|
|
|
|
|
|
|
|
|
Advanced |
|
Income (Loss) |
|
|
|
||
|
|
|
|
|
|
Costs |
|
Depreciation |
|
Projects, Research |
|
before Income |
|
|
|
||||
|
|
|
|
|
|
Applicable |
|
and |
|
and Development |
|
and Mining Tax |
|
Capital |
|||||
|
|
|
Sales |
|
to Sales |
|
Amortization |
|
and Exploration |
|
and Other Items |
|
Expenditures(1) |
||||||
|
Three Months Ended September 30, 2015 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Carlin |
|
$ |
261 |
|
$ |
208 |
|
$ |
54 |
|
$ |
5 |
|
$ |
(9) |
|
$ |
74 |
|
Phoenix: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gold |
|
|
63 |
|
|
48 |
|
|
13 |
|
|
|
|
|
|
|
|
|
|
Copper |
|
|
30 |
|
|
27 |
|
|
6 |
|
|
|
|
|
|
|
|
|
|
Total Phoenix |
|
|
93 |
|
|
75 |
|
|
19 |
|
|
1 |
|
|
(4) |
|
|
5 |
|
Twin Creeks |
|
|
134 |
|
|
67 |
|
|
13 |
|
|
2 |
|
|
52 |
|
|
8 |
|
Long Canyon |
|
|
— |
|
|
— |
|
|
— |
|
|
7 |
|
|
(7) |
|
|
32 |
|
CC&V |
|
|
38 |
|
|
10 |
|
|
6 |
|
|
1 |
|
|
20 |
|
|
27 |
|
Other North America |
|
|
— |
|
|
— |
|
|
1 |
|
|
— |
|
|
9 |
|
|
1 |
|
North America |
|
|
526 |
|
|
360 |
|
|
93 |
|
|
16 |
|
|
61 |
|
|
147 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Yanacocha |
|
|
288 |
|
|
160 |
|
|
88 |
|
|
9 |
|
|
13 |
|
|
28 |
|
Merian |
|
|
— |
|
|
— |
|
|
— |
|
|
3 |
|
|
(2) |
|
|
90 |
|
Other South America |
|
|
— |
|
|
— |
|
|
3 |
|
|
10 |
|
|
(13) |
|
|
— |
|
South America |
|
|
288 |
|
|
160 |
|
|
91 |
|
|
22 |
|
|
(2) |
|
|
118 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Boddington: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gold |
|
|
224 |
|
|
131 |
|
|
27 |
|
|
|
|
|
|
|
|
|
|
Copper |
|
|
36 |
|
|
33 |
|
|
6 |
|
|
|
|
|
|
|
|
|
|
Total Boddington |
|
|
260 |
|
|
164 |
|
|
33 |
|
|
— |
|
|
68 |
|
|
13 |
|
Tanami |
|
|
141 |
|
|
55 |
|
|
22 |
|
|
2 |
|
|
66 |
|
|
22 |
|
Waihi (2) |
|
|
32 |
|
|
12 |
|
|
4 |
|
|
1 |
|
|
14 |
|
|
1 |
|
Kalgoorlie |
|
|
95 |
|
|
68 |
|
|
5 |
|
|
1 |
|
|
24 |
|
|
3 |
|
Other Asia Pacific |
|
|
— |
|
|
— |
|
|
4 |
|
|
1 |
|
|
(10) |
|
|
1 |
|
Asia Pacific |
|
|
528 |
|
|
299 |
|
|
68 |
|
|
5 |
|
|
162 |
|
|
40 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ahafo |
|
|
89 |
|
|
52 |
|
|
11 |
|
|
5 |
|
|
22 |
|
|
21 |
|
Akyem |
|
|
129 |
|
|
54 |
|
|
24 |
|
|
2 |
|
|
51 |
|
|
12 |
|
Other Africa |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(7) |
|
|
— |
|
Africa |
|
|
218 |
|
|
106 |
|
|
35 |
|
|
7 |
|
|
66 |
|
|
33 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate and Other |
|
|
— |
|
|
— |
|
|
5 |
|
|
15 |
|
|
(49) |
|
|
3 |
|
Consolidated |
|
$ |
1,560 |
|
$ |
925 |
|
$ |
292 |
|
$ |
65 |
|
$ |
238 |
|
$ |
341 |
|
(1) |
Includes an increase in accrued capital expenditures of $25; consolidated capital expenditures on a cash basis were $316. |
|
(2) |
On October 29, 2015, the Company sold the Waihi mine. |
|
|
|
|
|
|
|
|
|
|
|
Advanced |
|
Income (Loss) |
|
|
|
|
|||
|
|
|
|
|
Costs |
|
Depreciation |
|
Projects, Research |
|
before Income |
|
|
|
||||||
|
|
|
|
|
|
Applicable |
|
and |
|
and Development |
|
and Mining Tax |
|
Capital |
|
|||||
|
|
|
Sales |
|
to Sales |
|
Amortization |
|
and Exploration |
|
and Other Items |
|
Expenditures(1) |
|
||||||
|
Nine Months Ended September 30, 2016 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Carlin |
|
$ |
864 |
|
$ |
585 |
|
$ |
143 |
|
$ |
14 |
|
$ |
115 |
|
$ |
116 |
|
|
Phoenix: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gold |
|
|
187 |
|
|
118 |
|
|
37 |
|
|
|
|
|
|
|
|
|
|
|
Copper |
|
|
63 |
|
|
76 |
|
|
20 |
|
|
|
|
|
|
|
|
|
|
|
Total Phoenix |
|
|
250 |
|
|
194 |
|
|
57 |
|
|
1 |
|
|
(10) |
|
|
15 |
|
|
Twin Creeks |
|
|
432 |
|
|
170 |
|
|
36 |
|
|
6 |
|
|
217 |
|
|
29 |
|
|
Long Canyon |
|
|
— |
|
|
— |
|
|
— |
|
|
17 |
|
|
(17) |
|
|
101 |
|
|
CC&V |
|
|
361 |
|
|
156 |
|
|
78 |
|
|
7 |
|
|
115 |
|
|
49 |
|
|
Other North America |
|
|
— |
|
|
— |
|
|
1 |
|
|
9 |
|
|
(7) |
|
|
3 |
|
|
North America |
|
|
1,907 |
|
|
1,105 |
|
|
315 |
|
|
54 |
|
|
413 |
|
|
313 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Yanacocha |
|
|
600 |
|
|
396 |
|
|
220 |
|
|
26 |
|
|
(96) |
|
|
64 |
|
|
Merian |
|
|
— |
|
|
— |
|
|
1 |
|
|
21 |
|
|
(22) |
|
|
202 |
|
|
Other South America |
|
|
— |
|
|
— |
|
|
10 |
|
|
24 |
|
|
(38) |
|
|
— |
|
|
South America |
|
|
600 |
|
|
396 |
|
|
231 |
|
|
71 |
|
|
(156) |
|
|
266 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Boddington: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gold |
|
|
741 |
|
|
391 |
|
|
82 |
|
|
|
|
|
|
|
|
|
|
|
Copper |
|
|
108 |
|
|
89 |
|
|
17 |
|
|
|
|
|
|
|
|
|
|
|
Total Boddington |
|
|
849 |
|
|
480 |
|
|
99 |
|
|
— |
|
|
245 |
|
|
40 |
|
|
Tanami |
|
|
450 |
|
|
180 |
|
|
62 |
|
|
10 |
|
|
197 |
|
|
93 |
|
|
Kalgoorlie |
|
|
348 |
|
|
189 |
|
|
14 |
|
|
4 |
|
|
138 |
|
|
13 |
|
|
Other Asia Pacific |
|
|
— |
|
|
— |
|
|
7 |
|
|
5 |
|
|
(28) |
|
|
— |
|
|
Asia Pacific |
|
|
1,647 |
|
|
849 |
|
|
182 |
|
|
19 |
|
|
552 |
|
|
146 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ahafo |
|
|
331 |
|
|
212 |
|
|
62 |
|
|
20 |
|
|
30 |
|
|
61 |
|
|
Akyem |
|
|
437 |
|
|
174 |
|
|
93 |
|
|
8 |
|
|
158 |
|
|
15 |
|
|
Other Africa |
|
|
— |
|
|
— |
|
|
1 |
|
|
2 |
|
|
(7) |
|
|
— |
|
|
Africa |
|
|
768 |
|
|
386 |
|
|
156 |
|
|
30 |
|
|
181 |
|
|
76 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate and Other |
|
|
— |
|
|
— |
|
|
8 |
|
|
38 |
|
|
(318) |
|
|
6 |
|
|
Consolidated |
|
$ |
4,922 |
|
$ |
2,736 |
|
$ |
892 |
|
$ |
212 |
|
$ |
672 |
|
$ |
807 |
|
|
(1) |
Includes a decrease in accrued capital expenditures of $25; consolidated capital expenditures on a cash basis were $832. |
|
|
|
|
|
|
|
|
|
|
|
Advanced |
|
Income (Loss) |
|
|
|
|
|||
|
|
|
|
|
Costs |
|
Depreciation |
|
Projects, Research |
|
before Income |
|
|
|
||||||
|
|
|
|
|
|
Applicable |
|
and |
|
and Development |
|
and Mining Tax |
|
Capital |
|
|||||
|
|
|
Sales |
|
to Sales |
|
Amortization |
|
and Exploration |
|
and Other Items |
|
Expenditures(1) |
|
||||||
|
Nine Months Ended September 30, 2015 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Carlin |
|
$ |
780 |
|
$ |
573 |
|
$ |
145 |
|
$ |
12 |
|
$ |
41 |
|
$ |
189 |
|
|
Phoenix: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gold |
|
|
174 |
|
|
121 |
|
|
31 |
|
|
|
|
|
|
|
|
|
|
|
Copper |
|
|
88 |
|
|
69 |
|
|
15 |
|
|
|
|
|
|
|
|
|
|
|
Total Phoenix |
|
|
262 |
|
|
190 |
|
|
46 |
|
|
3 |
|
|
13 |
|
|
20 |
|
|
Twin Creeks |
|
|
433 |
|
|
190 |
|
|
38 |
|
|
7 |
|
|
194 |
|
|
39 |
|
|
Long Canyon |
|
|
— |
|
|
— |
|
|
— |
|
|
13 |
|
|
(13) |
|
|
56 |
|
|
CC&V |
|
|
38 |
|
|
10 |
|
|
6 |
|
|
1 |
|
|
20 |
|
|
27 |
|
|
Other North America |
|
|
— |
|
|
— |
|
|
1 |
|
|
6 |
|
|
8 |
|
|
3 |
|
|
North America |
|
|
1,513 |
|
|
963 |
|
|
236 |
|
|
42 |
|
|
263 |
|
|
334 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Yanacocha |
|
|
831 |
|
|
405 |
|
|
225 |
|
|
22 |
|
|
127 |
|
|
62 |
|
|
Merian |
|
|
— |
|
|
— |
|
|
— |
|
|
8 |
|
|
(8) |
|
|
254 |
|
|
Other South America |
|
|
— |
|
|
— |
|
|
8 |
|
|
32 |
|
|
(42) |
|
|
— |
|
|
South America |
|
|
831 |
|
|
405 |
|
|
233 |
|
|
62 |
|
|
77 |
|
|
316 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Boddington: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gold |
|
|
665 |
|
|
411 |
|
|
81 |
|
|
|
|
|
|
|
|
|
|
|
Copper |
|
|
124 |
|
|
101 |
|
|
18 |
|
|
|
|
|
|
|
|
|
|
|
Total Boddington |
|
|
789 |
|
|
512 |
|
|
99 |
|
|
1 |
|
|
177 |
|
|
42 |
|
|
Tanami |
|
|
399 |
|
|
172 |
|
|
63 |
|
|
5 |
|
|
164 |
|
|
68 |
|
|
Waihi (2) |
|
|
121 |
|
|
49 |
|
|
12 |
|
|
3 |
|
|
53 |
|
|
11 |
|
|
Kalgoorlie |
|
|
269 |
|
|
206 |
|
|
16 |
|
|
2 |
|
|
48 |
|
|
14 |
|
|
Other Asia Pacific |
|
|
— |
|
|
— |
|
|
12 |
|
|
3 |
|
|
(31) |
|
|
3 |
|
|
Asia Pacific |
|
|
1,578 |
|
|
939 |
|
|
202 |
|
|
14 |
|
|
411 |
|
|
138 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ahafo |
|
|
297 |
|
|
151 |
|
|
39 |
|
|
16 |
|
|
88 |
|
|
66 |
|
|
Akyem |
|
|
414 |
|
|
151 |
|
|
70 |
|
|
6 |
|
|
185 |
|
|
31 |
|
|
Other Africa |
|
|
— |
|
|
— |
|
|
— |
|
|
2 |
|
|
(10) |
|
|
— |
|
|
Africa |
|
|
711 |
|
|
302 |
|
|
109 |
|
|
24 |
|
|
263 |
|
|
97 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate and Other |
|
|
— |
|
|
— |
|
|
12 |
|
|
60 |
|
|
(392) |
|
|
33 |
|
|
Consolidated |
|
$ |
4,633 |
|
$ |
2,609 |
|
$ |
792 |
|
$ |
202 |
|
$ |
622 |
|
$ |
918 |
|
|
(1) |
Includes an increase in accrued capital expenditures of $29; consolidated capital expenditures on a cash basis were $889. |
|
(2) |
On October 29, 2015, the Company sold the Waihi mine. |
|
|||
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
||||||||
|
|
|
September 30, |
|
September 30, |
|
||||||||
|
|
|
2016 |
|
2015 |
|
2016 |
|
2015 |
|
||||
|
Reclamation Accretion |
|
$ |
19 |
|
$ |
19 |
|
$ |
57 |
|
$ |
55 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Remediation |
|
|
5 |
|
|
2 |
|
|
7 |
|
|
7 |
|
|
Remediation Accretion |
|
|
1 |
|
|
1 |
|
|
3 |
|
|
3 |
|
|
|
|
|
6 |
|
|
3 |
|
|
10 |
|
|
10 |
|
|
|
|
$ |
25 |
|
$ |
22 |
|
$ |
67 |
|
$ |
65 |
|
|
|
|
2016 |
|
2015 |
|
||
|
Reclamation balance at January 1, |
|
$ |
1,300 |
|
$ |
1,303 |
|
|
Additions, changes in estimates and other |
|
|
6 |
|
|
(10) |
|
|
Acquisitions and divestitures |
|
|
— |
|
|
80 |
|
|
Payments and other |
|
|
(14) |
|
|
(15) |
|
|
Accretion expense |
|
|
57 |
|
|
55 |
|
|
Reclamation balance at September 30, |
|
$ |
1,349 |
|
$ |
1,413 |
|
|
|
|
2016 |
|
2015 |
|
||
|
Remediation balance at January 1, |
|
$ |
318 |
|
$ |
193 |
|
|
Payments and other |
|
|
(21) |
|
|
(33) |
|
|
Accretion expense |
|
|
3 |
|
|
3 |
|
|
Remediation balance at September 30, |
|
$ |
300 |
|
$ |
163 |
|
|
|||
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
||||||||
|
|
|
September 30, |
|
September 30, |
|
||||||||
|
|
|
2016 |
|
2015 |
|
2016 |
|
2015 |
|
||||
|
Restructuring and other |
|
$ |
7 |
|
$ |
12 |
|
$ |
26 |
|
$ |
26 |
|
|
Acquisition costs |
|
|
9 |
|
|
7 |
|
|
11 |
|
|
15 |
|
|
Write-downs |
|
|
— |
|
|
3 |
|
|
4 |
|
|
6 |
|
|
Western Australia power plant |
|
|
1 |
|
|
2 |
|
|
3 |
|
|
5 |
|
|
Other |
|
|
4 |
|
|
3 |
|
|
10 |
|
|
21 |
|
|
|
|
$ |
21 |
|
$ |
27 |
|
$ |
54 |
|
$ |
73 |
|
|
|||
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
||||||||
|
|
|
September 30, |
|
September 30, |
|
||||||||
|
|
|
2016 |
|
2015 |
|
2016 |
|
2015 |
|
||||
|
Gain (loss) on asset and investment sales, net |
|
$ |
5 |
|
$ |
66 |
|
$ |
109 |
|
$ |
109 |
|
|
Foreign currency exchange, net |
|
|
(9) |
|
|
25 |
|
|
(29) |
|
|
36 |
|
|
Gain on deconsolidation of TMAC |
|
|
— |
|
|
76 |
|
|
— |
|
|
76 |
|
|
Impairment of investments |
|
|
— |
|
|
(29) |
|
|
— |
|
|
(102) |
|
|
Other |
|
|
— |
|
|
4 |
|
|
13 |
|
|
17 |
|
|
|
|
$ |
(4) |
|
$ |
142 |
|
$ |
93 |
|
$ |
136 |
|
|
|||
|
|
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
||||||||||||||||
|
|
|
2016 |
|
2015 |
|
2016 |
|
2015 |
|
||||||||||||
|
Income (loss) before income and mining tax and other items |
|
|
|
$ |
223 |
|
|
|
$ |
238 |
|
|
|
$ |
672 |
|
|
|
$ |
622 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax at statutory rate |
|
35 |
% |
$ |
78 |
|
35 |
% |
$ |
83 |
|
35 |
% |
$ |
235 |
|
35 |
% |
$ |
218 |
|
|
Reconciling items: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percentage depletion (1) |
|
(5) |
|
|
(11) |
|
(3) |
|
|
(8) |
|
(7) |
|
|
(47) |
|
(10) |
|
|
(61) |
|
|
Change in valuation allowance on deferred tax assets |
|
(2) |
|
|
(5) |
|
(17) |
|
|
(40) |
|
49 |
|
|
330 |
|
11 |
|
|
68 |
|
|
Mining and other taxes |
|
6 |
|
|
13 |
|
9 |
|
|
21 |
|
6 |
|
|
41 |
|
10 |
|
|
59 |
|
|
Tax impact on sale of assets |
|
— |
|
|
— |
|
3 |
|
|
8 |
|
(5) |
|
|
(35) |
|
1 |
|
|
8 |
|
|
U.S. tax effect of minority interest attributable to non-U.S. investees |
|
4 |
|
|
10 |
|
(1) |
|
|
(3) |
|
3 |
|
|
20 |
|
1 |
|
|
9 |
|
|
Other (1) |
|
2 |
|
|
5 |
|
— |
|
|
— |
|
2 |
|
|
11 |
|
— |
|
|
1 |
|
|
Income and mining tax expense |
|
40 |
% |
$ |
90 |
|
26 |
% |
$ |
61 |
|
83 |
% |
$ |
555 |
|
48 |
% |
$ |
302 |
|
|
(1) |
Includes the reduction to percentage depletion and the domestic production deduction from the filing of the 2015 tax return during the second quarter of 2016. |
|
|||
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
||||||||
|
|
|
September 30, |
|
September 30, |
|
||||||||
|
|
|
2016 |
|
2015 |
|
2016 |
|
2015 |
|
||||
|
Minera Yanacocha S.R.L. |
|
$ |
(32) |
|
$ |
— |
|
$ |
(56) |
|
$ |
23 |
|
|
Merian |
|
|
(2) |
|
|
— |
|
|
(6) |
|
|
— |
|
|
TMAC Resources Inc. |
|
|
— |
|
|
— |
|
|
— |
|
|
(13) |
|
|
Other |
|
|
— |
|
|
— |
|
|
— |
|
|
1 |
|
|
|
|
$ |
(34) |
|
$ |
— |
|
$ |
(62) |
|
$ |
11 |
|
|
|
|
At September 30, |
|
At December 31, |
|
||
|
|
|
2016 |
|
2015 |
|
||
|
Current assets: |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
18 |
|
$ |
16 |
|
|
Other current assets (1) |
|
|
57 |
|
|
23 |
|
|
|
|
|
75 |
|
|
39 |
|
|
Non-current assets: |
|
|
|
|
|
|
|
|
Property, plant and mine development, net |
|
|
753 |
|
|
564 |
|
|
Total assets |
|
$ |
828 |
|
$ |
603 |
|
|
|
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
|
Other current liabilities (2) |
|
$ |
40 |
|
$ |
35 |
|
|
|
|
|
40 |
|
|
35 |
|
|
Non-current liabilities: |
|
|
|
|
|
|
|
|
Reclamation and remediation liabilities |
|
|
12 |
|
|
8 |
|
|
Total liabilities |
|
$ |
52 |
|
$ |
43 |
|
|
(1) |
Other current assets include other accounts receivables, inventories, stockpiles and ore on leach pads, prepaid assets and other current assets. |
|
(2) |
Other current liabilities include employee-related benefits and other current liabilities. |
|
|||
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
||||||||
|
|
|
September 30, |
|
September 30, |
|
||||||||
|
|
|
2016 |
|
2015 |
|
2016 |
|
2015 |
|
||||
|
Net income (loss) attributable to Newmont stockholders: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing operations |
|
$ |
169 |
|
$ |
159 |
|
$ |
171 |
|
$ |
275 |
|
|
Discontinued operations |
|
|
(527) |
|
|
60 |
|
|
(454) |
|
|
199 |
|
|
|
|
$ |
(358) |
|
$ |
219 |
|
$ |
(283) |
|
$ |
474 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares (millions): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
531 |
|
|
529 |
|
|
530 |
|
|
511 |
|
|
Effect of employee stock-based awards |
|
|
2 |
|
|
1 |
|
|
2 |
|
|
1 |
|
|
Diluted |
|
|
533 |
|
|
530 |
|
|
532 |
|
|
512 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) per common share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing operations |
|
$ |
0.32 |
|
$ |
0.30 |
|
$ |
0.32 |
|
$ |
0.54 |
|
|
Discontinued operations |
|
|
(0.99) |
|
|
0.12 |
|
|
(0.85) |
|
|
0.39 |
|
|
|
|
$ |
(0.67) |
|
$ |
0.42 |
|
$ |
(0.53) |
|
$ |
0.93 |
|
|
Diluted: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing operations |
|
$ |
0.32 |
|
$ |
0.30 |
|
$ |
0.32 |
|
$ |
0.54 |
|
|
Discontinued operations |
|
|
(0.99) |
|
|
0.12 |
|
|
(0.85) |
|
|
0.39 |
|
|
|
|
$ |
(0.67) |
|
$ |
0.42 |
|
$ |
(0.53) |
|
$ |
0.93 |
|
|
|||
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
||||||||
|
|
|
September 30, |
|
September 30, |
|
||||||||
|
|
|
2016 |
|
2015 |
|
2016 |
|
2015 |
|
||||
|
Pension benefit costs, net: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service cost |
|
$ |
6 |
|
$ |
7 |
|
$ |
21 |
|
$ |
22 |
|
|
Interest cost |
|
|
11 |
|
|
9 |
|
|
34 |
|
|
30 |
|
|
Expected return on plan assets |
|
|
(14) |
|
|
(15) |
|
|
(43) |
|
|
(44) |
|
|
Amortization, net |
|
|
6 |
|
|
6 |
|
|
18 |
|
|
20 |
|
|
Settlements |
|
|
4 |
|
|
3 |
|
|
4 |
|
|
3 |
|
|
|
|
$ |
13 |
|
$ |
10 |
|
$ |
34 |
|
$ |
31 |
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
||||||||
|
|
|
September 30, |
|
September 30, |
|
||||||||
|
|
|
2016 |
|
2015 |
|
2016 |
|
2015 |
|
||||
|
Other benefit costs, net: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service cost |
|
$ |
— |
|
$ |
— |
|
$ |
1 |
|
$ |
2 |
|
|
Interest cost |
|
|
1 |
|
|
1 |
|
|
3 |
|
|
4 |
|
|
Amortization, net |
|
|
(1) |
|
|
(1) |
|
|
(4) |
|
|
(1) |
|
|
|
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
5 |
|
|
|||
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
||||||||
|
|
|
September 30, |
|
September 30, |
|
||||||||
|
|
|
2016 |
|
2015 |
|
2016 |
|
2015 |
|
||||
|
Stock-based compensation: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Performance leveraged stock units |
|
$ |
9 |
|
$ |
9 |
|
$ |
28 |
|
$ |
30 |
|
|
Restricted stock units |
|
|
7 |
|
|
7 |
|
|
22 |
|
|
23 |
|
|
Strategic stock units |
|
|
1 |
|
|
2 |
|
|
4 |
|
|
5 |
|
|
|
|
$ |
17 |
|
$ |
18 |
|
$ |
54 |
|
$ |
58 |
|
|
|||
|
|
|
Fair Value at September 30, 2016 |
|
||||||||||
|
|
|
Total |
|
Level 1 |
|
Level 2 |
|
Level 3 |
|
||||
|
Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
2,099 |
|
$ |
2,099 |
|
$ |
— |
|
$ |
— |
|
|
Restricted assets (1) |
|
|
67 |
|
|
67 |
|
|
— |
|
|
— |
|
|
Marketable equity securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Extractive industries |
|
|
84 |
|
|
84 |
|
|
— |
|
|
— |
|
|
Other |
|
|
17 |
|
|
17 |
|
|
— |
|
|
— |
|
|
Marketable debt securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset backed commercial paper |
|
|
20 |
|
|
— |
|
|
— |
|
|
20 |
|
|
Auction rate securities |
|
|
7 |
|
|
— |
|
|
— |
|
|
7 |
|
|
Trade receivable from provisional copper and |
|
|
131 |
|
|
131 |
|
|
— |
|
|
— |
|
|
|
|
$ |
2,425 |
|
$ |
2,398 |
|
$ |
— |
|
$ |
27 |
|
|
Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Debt (2) |
|
$ |
5,555 |
|
$ |
— |
|
$ |
5,555 |
|
$ |
— |
|
|
Derivative instruments, net: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign exchange forward contracts |
|
|
25 |
|
|
— |
|
|
25 |
|
|
— |
|
|
Diesel forward contracts |
|
|
8 |
|
|
— |
|
|
8 |
|
|
— |
|
|
Boddington contingent consideration |
|
|
21 |
|
|
— |
|
|
— |
|
|
21 |
|
|
Holt property royalty |
|
|
225 |
|
|
— |
|
|
— |
|
|
225 |
|
|
|
|
$ |
5,834 |
|
$ |
— |
|
$ |
5,588 |
|
$ |
246 |
|
|
|
|
Fair Value at December 31, 2015 |
|
||||||||||
|
|
|
Total |
|
Level 1 |
|
Level 2 |
|
Level 3 |
|
||||
|
Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
2,363 |
|
$ |
2,363 |
|
$ |
— |
|
$ |
— |
|
|
Restricted assets (1) |
|
|
68 |
|
|
68 |
|
|
— |
|
|
— |
|
|
Marketable equity securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Extractive industries |
|
|
186 |
|
|
186 |
|
|
— |
|
|
— |
|
|
Other |
|
|
16 |
|
|
16 |
|
|
— |
|
|
— |
|
|
Marketable debt securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset backed commercial paper |
|
|
18 |
|
|
— |
|
|
— |
|
|
18 |
|
|
Auction rate securities |
|
|
7 |
|
|
— |
|
|
— |
|
|
7 |
|
|
Trade receivable from provisional copper and |
|
|
72 |
|
|
72 |
|
|
— |
|
|
— |
|
|
|
|
$ |
2,730 |
|
$ |
2,705 |
|
$ |
— |
|
$ |
25 |
|
|
Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Debt (2) |
|
$ |
5,143 |
|
$ |
— |
|
$ |
5,143 |
|
$ |
— |
|
|
Derivative instruments, net: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign exchange forward contracts |
|
|
60 |
|
|
— |
|
|
60 |
|
|
— |
|
|
Diesel forward contracts |
|
|
32 |
|
|
— |
|
|
32 |
|
|
— |
|
|
Boddington contingent consideration |
|
|
10 |
|
|
— |
|
|
— |
|
|
10 |
|
|
Holt property royalty |
|
|
129 |
|
|
— |
|
|
— |
|
|
129 |
|
|
|
|
$ |
5,374 |
|
$ |
— |
|
$ |
5,235 |
|
$ |
139 |
|
|
(1) |
Restricted assets include cash and marketable securities whose carrying amounts approximate their fair value. |
|
(2) |
Debt, exclusive of capital leases, is carried at amortized cost. The outstanding carrying value was $5,099 and $5,842 at September 30, 2016 and December 31, 2015, respectively. The fair value measurement of debt was based on prices obtained from readily available pricing sources. |
|
|
|
At September 30, |
|
|
|
|
|
Range/Weighted |
|
||
|
Description |
|
2016 |
|
Valuation technique |
|
Unobservable input |
|
average |
|
||
|
Auction rate securities |
|
$ |
7 |
|
Risk-adjusted indicative price |
|
Recoverability rate |
|
|
90 |
% |
|
Asset backed commercial paper |
|
$ |
20 |
|
Risk-adjusted indicative price |
|
Recoverability rate |
|
|
90 |
% |
|
Boddington contingent consideration |
|
$ |
21 |
|
Monte Carlo |
|
Discount rate |
|
|
2.83 |
% |
|
|
|
|
|
|
|
|
Short-term gold price |
|
$ |
1,335 |
|
|
|
|
|
|
|
|
|
Long-term gold price |
|
$ |
1,300 |
|
|
|
|
|
|
|
|
|
Short-term copper price |
|
$ |
2.17 |
|
|
|
|
|
|
|
|
|
Long-term copper price |
|
$ |
3.00 |
|
|
|
|
|
|
|
|
|
Long-term Australian to U.S. dollar exchange rate |
|
$ |
0.80 |
|
|
Holt property royalty |
|
$ |
225 |
|
Monte Carlo |
|
Discount rate |
|
|
2.98 |
% |
|
|
|
|
|
|
|
|
Short-term gold price |
|
$ |
1,335 |
|
|
|
|
|
|
|
|
|
Long-term gold price |
|
$ |
1,300 |
|
|
|
|
|
|
|
|
|
Gold production scenarios (in 000's of ounces) |
|
|
348 - 1,586 |
|
|
|
|
At December 31, |
|
|
|
|
|
Range/Weighted |
|
||
|
Description |
|
2015 |
|
Valuation technique |
|
Unobservable input |
|
average |
|
||
|
Auction rate securities |
|
$ |
7 |
|
Risk-adjusted indicative price |
|
Recoverability rate |
|
|
85 |
% |
|
Asset backed commercial paper |
|
$ |
18 |
|
Risk-adjusted indicative price |
|
Recoverability rate |
|
|
90 |
% |
|
Boddington contingent consideration |
|
$ |
10 |
|
Monte Carlo |
|
Discount rate |
|
|
5.32 |
% |
|
|
|
|
|
|
|
|
Short-term gold price |
|
$ |
1,106 |
|
|
|
|
|
|
|
|
|
Long-term gold price |
|
$ |
1,300 |
|
|
|
|
|
|
|
|
|
Short-term copper price |
|
$ |
2.22 |
|
|
|
|
|
|
|
|
|
Long-term copper price |
|
$ |
3.00 |
|
|
|
|
|
|
|
|
|
Long-term Australian to U.S. dollar exchange rate |
|
$ |
0.80 |
|
|
Holt property royalty |
|
$ |
129 |
|
Monte Carlo |
|
Discount rate |
|
|
5.06 |
% |
|
|
|
|
|
|
|
|
Short-term gold price |
|
$ |
1,106 |
|
|
|
|
|
|
|
|
|
Long-term gold price |
|
$ |
1,300 |
|
|
|
|
|
|
|
|
|
Gold production scenarios (in 000's of ounces) |
|
|
398 - 1,636 |
|
|
|
|
|
|
Asset |
|
|
|
|
|
|
|
|
|
||||||
|
|
|
Auction |
|
Backed |
|
|
|
Boddington |
|
Holt |
|
|
|
||||||
|
|
|
Rate |
|
Commercial |
|
Total |
|
Contingent |
|
Property |
|
Total |
|
||||||
|
|
|
Securities (1) |
|
Paper (1) |
|
Assets |
|
Consideration (2) |
|
Royalty (3) |
|
Liabilities |
|
||||||
|
Fair value at December 31, 2015 |
|
$ |
7 |
|
$ |
18 |
|
$ |
25 |
|
$ |
10 |
|
$ |
129 |
|
$ |
139 |
|
|
Settlements |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(8) |
|
|
(8) |
|
|
Revaluation |
|
|
— |
|
|
2 |
|
|
2 |
|
|
11 |
|
|
104 |
|
|
115 |
|
|
Fair value at September 30, 2016 |
|
$ |
7 |
|
$ |
20 |
|
$ |
27 |
|
$ |
21 |
|
$ |
225 |
|
$ |
246 |
|
|
|
|
|
|
Asset |
|
|
|
|
|
|
|
|
|
||||||
|
|
|
Auction |
|
Backed |
|
|
|
Boddington |
|
Holt |
|
|
|
||||||
|
|
|
Rate |
|
Commercial |
|
Total |
|
Contingent |
|
Property |
|
Total |
|
||||||
|
|
|
Securities (1) |
|
Paper (1) |
|
Assets |
|
Consideration (2) |
|
Royalty (3) |
|
Liabilities |
|
||||||
|
Fair value at December 31, 2014 |
|
$ |
6 |
|
$ |
24 |
|
$ |
30 |
|
$ |
10 |
|
$ |
179 |
|
$ |
189 |
|
|
Settlements |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(9) |
|
|
(9) |
|
|
Revaluation |
|
|
1 |
|
|
(5) |
|
|
(4) |
|
|
— |
|
|
(49) |
|
|
(49) |
|
|
Fair value at September 30, 2015 |
|
$ |
7 |
|
$ |
19 |
|
$ |
26 |
|
$ |
10 |
|
$ |
121 |
|
$ |
131 |
|
|
(1) |
The gain (loss) recognized is included in Accumulated other comprehensive income (loss). |
|
(2) |
The gain (loss) recognized is included in Other expense, net. |
|
(3) |
The gain (loss) recognized is included in Net income (loss) from discontinued operations. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset |
|
|
|
|
|
|
|
|
|
||||||
|
|
|
Auction |
|
Backed |
|
|
|
Boddington |
|
Holt |
|
|
|
||||||
|
|
|
Rate |
|
Commercial |
|
Total |
|
Contingent |
|
Property |
|
Total |
|
||||||
|
|
|
Securities (1) |
|
Paper (1) |
|
Assets |
|
Consideration (2) |
|
Royalty (3) |
|
Liabilities |
|
||||||
|
Fair value at December 31, 2015 |
|
$ |
7 |
|
$ |
18 |
|
$ |
25 |
|
$ |
10 |
|
$ |
129 |
|
$ |
139 |
|
|
Settlements |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(8) |
|
|
(8) |
|
|
Revaluation |
|
|
— |
|
|
2 |
|
|
2 |
|
|
11 |
|
|
104 |
|
|
115 |
|
|
Fair value at September 30, 2016 |
|
$ |
7 |
|
$ |
20 |
|
$ |
27 |
|
$ |
21 |
|
$ |
225 |
|
$ |
246 |
|
|
|
|
|
|
Asset |
|
|
|
|
|
|
|
|
|
||||||
|
|
|
Auction |
|
Backed |
|
|
|
Boddington |
|
Holt |
|
|
|
||||||
|
|
|
Rate |
|
Commercial |
|
Total |
|
Contingent |
|
Property |
|
Total |
|
||||||
|
|
|
Securities (1) |
|
Paper (1) |
|
Assets |
|
Consideration (2) |
|
Royalty (3) |
|
Liabilities |
|
||||||
|
Fair value at December 31, 2014 |
|
$ |
6 |
|
$ |
24 |
|
$ |
30 |
|
$ |
10 |
|
$ |
179 |
|
$ |
189 |
|
|
Settlements |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(9) |
|
|
(9) |
|
|
Revaluation |
|
|
1 |
|
|
(5) |
|
|
(4) |
|
|
— |
|
|
(49) |
|
|
(49) |
|
|
Fair value at September 30, 2015 |
|
$ |
7 |
|
$ |
19 |
|
$ |
26 |
|
$ |
10 |
|
$ |
121 |
|
$ |
131 |
|
|
(1) |
The gain (loss) recognized is included in Accumulated other comprehensive income (loss). |
|
(2) |
The gain (loss) recognized is included in Other expense, net. |
|
(3) |
The gain (loss) recognized is included in Net income (loss) from discontinued operations. |
|
|||
|
|
|
Fair Values of Derivative Instruments |
|
||||||||||
|
|
|
At September 30, 2016 |
|
||||||||||
|
|
|
Other |
|
Other |
|
Other |
|
Other |
|
||||
|
|
|
Current |
|
Non-current |
|
Current |
|
Non-current |
|
||||
|
|
|
Assets |
|
Assets |
|
Liabilities |
|
Liabilities |
|
||||
|
Foreign currency exchange contracts: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
A$ operating fixed forwards |
|
$ |
— |
|
$ |
— |
|
$ |
20 |
|
$ |
5 |
|
|
Diesel fixed forwards |
|
|
1 |
|
|
1 |
|
|
10 |
|
|
— |
|
|
Total derivative instruments |
|
$ |
1 |
|
$ |
1 |
|
$ |
30 |
|
$ |
5 |
|
|
|
|
Fair Values of Derivative Instruments |
|
||||||||||
|
|
|
At December 31, 2015 |
|
||||||||||
|
|
|
Other |
|
Other |
|
Other |
|
Other |
|
||||
|
|
|
Current |
|
Non-current |
|
Current |
|
Non-current |
|
||||
|
|
|
Assets |
|
Assets |
|
Liabilities |
|
Liabilities |
|
||||
|
Foreign currency exchange contracts: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
A$ operating fixed forwards |
|
$ |
— |
|
$ |
— |
|
$ |
36 |
|
$ |
24 |
|
|
Diesel fixed forwards |
|
|
— |
|
|
— |
|
|
27 |
|
|
5 |
|
|
Total derivative instruments |
|
$ |
— |
|
$ |
— |
|
$ |
63 |
|
$ |
29 |
|
|
|
|
Foreign Currency |
|
Diesel Fixed |
|
Interest |
|
||||||||||||
|
|
|
Exchange Contracts |
|
Forward Contracts |
|
Rate Contracts |
|
||||||||||||
|
|
|
2016 |
|
2015 |
|
2016 |
|
2015 |
|
2016 |
|
2015 |
|
||||||
|
For the three months ended September 30, |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flow hedging relationships: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain (loss) recognized in Other comprehensive income (loss) (effective portion) |
|
$ |
4 |
|
$ |
(24) |
|
$ |
— |
|
$ |
(12) |
|
$ |
— |
|
$ |
— |
|
|
Gain (loss) reclassified from Accumulated other comprehensive income (loss) into income (loss) (effective portion) (1) |
|
$ |
(9) |
|
$ |
(12) |
|
$ |
(4) |
|
$ |
(7) |
|
$ |
(3) |
|
$ |
(5) |
|
|
Gain (loss) reclassified from Accumulated other comprehensive income (loss) into income (loss) (ineffective portion) (2) |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
1 |
|
$ |
— |
|
$ |
— |
|
|
For the nine months ended September 30, |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flow hedging relationships: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain (loss) recognized in Other comprehensive income (loss) (effective portion) |
|
$ |
8 |
|
$ |
(48) |
|
$ |
5 |
|
$ |
(13) |
|
$ |
— |
|
$ |
— |
|
|
Gain (loss) reclassified from Accumulated other comprehensive income (loss) into income (loss) (effective portion) (1) |
|
$ |
(29) |
|
$ |
(25) |
|
$ |
(18) |
|
$ |
(20) |
|
$ |
(11) |
|
$ |
(14) |
|
|
Gain (loss) reclassified from Accumulated other comprehensive income (loss) into income (loss) (ineffective portion) (2) |
|
$ |
— |
|
$ |
— |
|
$ |
1 |
|
$ |
2 |
|
$ |
— |
|
$ |
— |
|
|
(1) |
The gain (loss) recognized for the effective portion of cash flow hedges is included in Cost applicable to sales and Interest expense, net. |
|
(2) |
The ineffective portion recognized for cash flow hedges is included in Other income, net. |
|
|
|
Expected Maturity Date |
|
||||||
|
|
|
2016 |
|
2017 |
|
2018 |
|
Total/Average |
|
|
A$ Operating Fixed Forward Contracts: |
|
|
|
|
|
|
|
|
|
|
A$ notional (millions) |
|
35 |
|
105 |
|
6 |
|
146 |
|
|
Average rate ($/A$) |
|
0.94 |
|
0.93 |
|
0.92 |
|
0.94 |
|
|
Expected hedge ratio |
10 |
% |
8 |
% |
4 |
% |
|||
|
|
|
Expected Maturity Date |
|
||||||
|
|
|
2016 |
|
2017 |
|
2018 |
|
Total/Average |
|
|
Diesel Fixed Forward Contracts: |
|
|
|
|
|
|
|
|
|
|
Diesel gallons (millions) |
|
6 |
|
15 |
|
1 |
|
22 |
|
|
Average rate ($/gallon) |
|
2.07 |
|
1.74 |
|
1.53 |
|
1.82 |
|
|
Expected hedge ratio |
|
57 |
% |
36 |
% |
6 |
% |
|
|
|
|||
|
|
|
At September 30, 2016 |
|
||||||||||
|
|
|
Cost/Equity |
|
Unrealized |
|
Fair/Equity |
|
||||||
|
|
|
Basis |
|
Gain |
|
Loss |
|
Basis |
|
||||
|
Current: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Marketable Equity Securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Novo Resources Corp. |
|
$ |
14 |
|
$ |
9 |
|
$ |
— |
|
$ |
23 |
|
|
Gabriel Resources Ltd. |
|
|
5 |
|
|
19 |
|
|
— |
|
|
24 |
|
|
Other |
|
|
15 |
|
|
18 |
|
|
— |
|
|
33 |
|
|
|
|
$ |
34 |
|
$ |
46 |
|
$ |
— |
|
$ |
80 |
|
|
Non-current: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Marketable Debt Securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset backed commercial paper |
|
$ |
19 |
|
$ |
1 |
|
$ |
— |
|
$ |
20 |
|
|
Auction rate securities |
|
|
8 |
|
|
— |
|
|
(1) |
|
|
7 |
|
|
|
|
|
27 |
|
|
1 |
|
|
(1) |
|
|
27 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Marketable Equity Securities |
|
|
19 |
|
|
2 |
|
|
— |
|
|
21 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other investments, at cost |
|
|
6 |
|
|
— |
|
|
— |
|
|
6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity Method Investments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TMAC |
|
|
110 |
|
|
— |
|
|
— |
|
|
110 |
|
|
Minera La Zanja S.R.L. |
|
|
72 |
|
|
— |
|
|
— |
|
|
72 |
|
|
Euronimba Ltd. |
|
|
3 |
|
|
— |
|
|
— |
|
|
3 |
|
|
|
|
$ |
237 |
|
$ |
3 |
|
$ |
(1) |
|
$ |
239 |
|
|
|
|
At December 31, 2015 |
|
||||||||||
|
|
|
Cost/Equity |
|
Unrealized |
|
Fair/Equity |
|
||||||
|
|
|
Basis |
|
Gain |
|
Loss |
|
Basis |
|
||||
|
Current: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Marketable Equity Securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gabriel Resources Ltd. |
|
$ |
5 |
|
$ |
— |
|
$ |
— |
|
$ |
5 |
|
|
Other |
|
|
14 |
|
|
2 |
|
|
(2) |
|
|
14 |
|
|
|
|
$ |
19 |
|
$ |
2 |
|
$ |
(2) |
|
$ |
19 |
|
|
Non-current: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Marketable Debt Securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset backed commercial paper |
|
$ |
17 |
|
$ |
1 |
|
$ |
— |
|
$ |
18 |
|
|
Auction rate securities |
|
|
8 |
|
|
— |
|
|
(1) |
|
|
7 |
|
|
|
|
|
25 |
|
|
1 |
|
|
(1) |
|
|
25 |
|
|
Marketable Equity Securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Regis Resources Ltd. |
|
|
81 |
|
|
82 |
|
|
— |
|
|
163 |
|
|
Other |
|
|
17 |
|
|
3 |
|
|
— |
|
|
20 |
|
|
|
|
|
98 |
|
|
85 |
|
|
— |
|
|
183 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other investments, at cost |
|
|
6 |
|
|
— |
|
|
— |
|
|
6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity Method Investments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TMAC |
|
|
101 |
|
|
— |
|
|
— |
|
|
101 |
|
|
Minera La Zanja S.R.L. |
|
|
71 |
|
|
— |
|
|
— |
|
|
71 |
|
|
Novo Resources Corp. |
|
|
14 |
|
|
— |
|
|
— |
|
|
14 |
|
|
Euronimba Ltd. |
|
|
2 |
|
|
— |
|
|
— |
|
|
2 |
|
|
|
|
$ |
317 |
|
$ |
86 |
|
$ |
(1) |
|
$ |
402 |
|
|
|
|
Less than 12 Months |
|
12 Months or Greater |
|
Total |
|
||||||||||||
|
At September 30, 2016 |
|
Fair Value |
|
Unrealized |
|
Fair Value |
|
Unrealized |
|
Fair Value |
|
Unrealized |
|
||||||
|
Marketable equity securities |
|
$ |
3 |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
3 |
|
$ |
— |
|
|
Auction rate securities |
|
|
— |
|
|
— |
|
|
7 |
|
|
1 |
|
|
7 |
|
|
1 |
|
|
|
|
$ |
3 |
|
$ |
— |
|
$ |
7 |
|
$ |
1 |
|
$ |
10 |
|
$ |
1 |
|
|
|
|
Less than 12 Months |
|
12 Months or Greater |
|
Total |
|
||||||||||||
|
At December 31, 2015 |
|
Fair Value |
|
Unrealized |
|
Fair Value |
|
Unrealized |
|
Fair Value |
|
Unrealized |
|
||||||
|
Marketable equity securities |
|
$ |
5 |
|
$ |
2 |
|
$ |
— |
|
$ |
— |
|
$ |
5 |
|
$ |
2 |
|
|
Auction rate securities |
|
|
— |
|
|
— |
|
|
7 |
|
|
1 |
|
|
7 |
|
|
1 |
|
|
|
|
$ |
5 |
|
$ |
2 |
|
$ |
7 |
|
$ |
1 |
|
$ |
12 |
|
$ |
3 |
|
|
|||
|
|
|
At September 30, |
|
At December 31, |
|
||
|
|
|
2016 |
|
2015 |
|
||
|
Materials and supplies |
|
$ |
386 |
|
$ |
372 |
|
|
In-process |
|
|
125 |
|
|
115 |
|
|
Concentrate and copper cathode |
|
|
84 |
|
|
64 |
|
|
Precious metals |
|
|
14 |
|
|
10 |
|
|
|
|
$ |
609 |
|
$ |
561 |
|
|
|||
|
|
|
At September 30, |
|
At December 31, |
|
||
|
|
|
2016 |
|
2015 |
|
||
|
Current: |
|
|
|
|
|
|
|
|
Stockpiles |
|
$ |
398 |
|
$ |
440 |
|
|
Ore on leach pads |
|
|
387 |
|
|
342 |
|
|
|
|
$ |
785 |
|
$ |
782 |
|
|
Non-current: |
|
|
|
|
|
|
|
|
Stockpiles |
|
$ |
1,545 |
|
$ |
1,518 |
|
|
Ore on leach pads |
|
|
332 |
|
|
378 |
|
|
|
|
$ |
1,877 |
|
$ |
1,896 |
|
|
|
|
At September 30, |
|
At December 31, |
|
||
|
|
|
2016 |
|
2015 |
|
||
|
Stockpiles and ore on leach pads: |
|
|
|
|
|
|
|
|
Carlin |
|
$ |
449 |
|
$ |
394 |
|
|
Phoenix |
|
|
84 |
|
|
106 |
|
|
Twin Creeks |
|
|
338 |
|
|
329 |
|
|
Long Canyon |
|
|
2 |
|
|
— |
|
|
CC&V |
|
|
353 |
|
|
319 |
|
|
Yanacocha |
|
|
358 |
|
|
440 |
|
|
Merian |
|
|
11 |
|
|
4 |
|
|
Boddington |
|
|
396 |
|
|
390 |
|
|
Tanami |
|
|
12 |
|
|
12 |
|
|
Kalgoorlie |
|
|
110 |
|
|
109 |
|
|
Ahafo |
|
|
426 |
|
|
456 |
|
|
Akyem |
|
|
123 |
|
|
119 |
|
|
|
|
$ |
2,662 |
|
$ |
2,678 |
|
|
|||
|
|
|
At September 30, |
|
At December 31, |
|
||
|
|
|
2016 |
|
2015 |
|
||
|
Other current liabilities: |
|
|
|
|
|
|
|
|
Accrued operating costs |
|
$ |
112 |
|
$ |
85 |
|
|
Accrued capital expenditures |
|
|
84 |
|
|
112 |
|
|
Reclamation and remediation liabilities |
|
|
62 |
|
|
63 |
|
|
Accrued interest |
|
|
65 |
|
|
69 |
|
|
Derivative instruments |
|
|
30 |
|
|
63 |
|
|
Royalties |
|
|
32 |
|
|
46 |
|
|
Holt property royalty |
|
|
15 |
|
|
10 |
|
|
Boddington contingent consideration |
|
|
10 |
|
|
— |
|
|
Taxes other than income and mining |
|
|
7 |
|
|
8 |
|
|
Other |
|
|
39 |
|
|
31 |
|
|
|
|
$ |
456 |
|
$ |
487 |
|
|
|
|
|
|
|
|
|
|
|
Other non-current liabilities: |
|
|
|
|
|
|
|
|
Holt property royalty |
|
$ |
210 |
|
$ |
119 |
|
|
Income and mining taxes |
|
|
58 |
|
|
78 |
|
|
Power supply agreements |
|
|
32 |
|
|
31 |
|
|
Social development obligations |
|
|
28 |
|
|
29 |
|
|
Boddington contingent consideration |
|
|
11 |
|
|
10 |
|
|
Derivative instruments |
|
|
5 |
|
|
29 |
|
|
Other |
|
|
12 |
|
|
14 |
|
|
|
|
$ |
356 |
|
$ |
310 |
|
|
|||
|
|
|
Nine Months Ended September 30, |
|
||||
|
|
|
2016 |
|
2015 |
|
||
|
Common stock: |
|
|
|
|
|
|
|
|
At beginning of period |
|
$ |
847 |
|
$ |
798 |
|
|
Stock-based awards |
|
|
2 |
|
|
2 |
|
|
Stock issuance |
|
|
— |
|
|
46 |
|
|
At end of period |
|
|
849 |
|
|
846 |
|
|
Additional paid-in capital: |
|
|
|
|
|
|
|
|
At beginning of period |
|
|
9,427 |
|
|
8,712 |
|
|
Stock-based awards |
|
|
42 |
|
|
56 |
|
|
Stock issuance |
|
|
— |
|
|
629 |
|
|
Sale of noncontrolling interests |
|
|
— |
|
|
12 |
|
|
At end of period |
|
|
9,469 |
|
|
9,409 |
|
|
Accumulated other comprehensive income (loss): |
|
|
|
|
|
|
|
|
At beginning of period |
|
|
(334) |
|
|
(478) |
|
|
Other comprehensive income (loss) |
|
|
32 |
|
|
89 |
|
|
At end of period |
|
|
(302) |
|
|
(389) |
|
|
Retained earnings: |
|
|
|
|
|
|
|
|
At beginning of period |
|
|
1,410 |
|
|
1,242 |
|
|
Net income (loss) attributable to Newmont stockholders |
|
|
(283) |
|
|
474 |
|
|
Dividends paid |
|
|
(41) |
|
|
(38) |
|
|
At end of period |
|
|
1,086 |
|
|
1,678 |
|
|
Noncontrolling interests: |
|
|
|
|
|
|
|
|
At beginning of period |
|
|
2,942 |
|
|
2,815 |
|
|
Net income (loss) attributable to noncontrolling interests |
|
|
167 |
|
|
188 |
|
|
Dividends paid to noncontrolling interests |
|
|
(146) |
|
|
(3) |
|
|
Funding from noncontrolling interests, net |
|
|
63 |
|
|
69 |
|
|
Acquisition of noncontrolling interests |
|
|
(19) |
|
|
(8) |
|
|
Sale of noncontrolling interests, net |
|
|
— |
|
|
(36) |
|
|
At end of period |
|
|
3,007 |
|
|
3,025 |
|
|
Total equity |
|
$ |
14,109 |
|
$ |
14,569 |
|
|
|||
|
|
|
|
|
|
|
Pension and |
|
Changes in |
|
|
|
|||||
|
|
|
Unrealized gain |
|
Foreign |
|
other |
|
fair value of |
|
|
|
|||||
|
|
|
(loss) on |
|
currency |
|
post‑retirement |
|
cash flow |
|
|
|
|||||
|
|
|
marketable |
|
translation |
|
benefit |
|
hedge |
|
|
|
|||||
|
|
|
securities, net |
|
adjustments |
|
adjustments |
|
instruments |
|
Total |
|
|||||
|
Balance at December 31, 2015 |
|
$ |
(43) |
|
$ |
116 |
|
$ |
(207) |
|
$ |
(200) |
|
$ |
(334) |
|
|
Change in other comprehensive income (loss) before reclassifications |
|
|
66 |
|
|
10 |
|
|
(4) |
|
|
11 |
|
|
83 |
|
|
Reclassifications from accumulated other comprehensive income (loss) |
|
|
(103) |
|
|
— |
|
|
12 |
|
|
40 |
|
|
(51) |
|
|
Net current-period change |
|
|
(37) |
|
|
10 |
|
|
8 |
|
|
51 |
|
|
32 |
|
|
Balance at September 30, 2016 |
|
$ |
(80) |
|
$ |
126 |
|
$ |
(199) |
|
$ |
(149) |
|
$ |
(302) |
|
|
Details about Accumulated Other Comprehensive Income (Loss) Components |
|
Amount Reclassified from Accumulated Other Comprehensive Income (Loss) |
|
Affected Line Item in the Condensed Consolidated Statements of Operations |
|
||||||||||
|
|
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
|
|
||||||||
|
|
|
2016 |
|
2015 |
|
2016 |
|
2015 |
|
|
|
||||
|
Marketable securities adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sale of marketable securities |
|
$ |
— |
|
$ |
|
|
$ |
(103) |
|
$ |
(1) |
|
Other income, net |
|
|
Impairment of marketable securities |
|
|
— |
|
|
28 |
|
|
— |
|
|
101 |
|
Other income, net |
|
|
Net of tax |
|
$ |
— |
|
$ |
28 |
|
$ |
(103) |
|
$ |
100 |
|
|
|
|
Pension and other post-retirement benefit adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization |
|
$ |
5 |
|
$ |
5 |
|
$ |
14 |
|
$ |
19 |
|
(1) |
|
|
Settlement |
|
|
4 |
|
|
3 |
|
|
4 |
|
|
3 |
|
Other expense, net |
|
|
Total before tax |
|
|
9 |
|
|
8 |
|
|
18 |
|
|
22 |
|
|
|
|
Tax benefit (expense) |
|
|
(3) |
|
|
(3) |
|
|
(6) |
|
|
(7) |
|
|
|
|
Net of tax |
|
$ |
6 |
|
$ |
5 |
|
$ |
12 |
|
$ |
15 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hedge instruments adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating cash flow hedges (effective portion) |
|
$ |
13 |
|
$ |
19 |
|
$ |
47 |
|
$ |
45 |
|
Costs applicable to sales |
|
|
Operating cash flow hedges (ineffective portion) |
|
|
— |
|
|
(1) |
|
|
(1) |
|
|
(2) |
|
Other income, net |
|
|
Interest rate contracts |
|
|
3 |
|
|
5 |
|
|
11 |
|
|
14 |
|
Interest expense, net |
|
|
Total before tax |
|
|
16 |
|
|
23 |
|
|
57 |
|
|
57 |
|
|
|
|
Tax benefit (expense) |
|
|
(4) |
|
|
(6) |
|
|
(17) |
|
|
(17) |
|
|
|
|
Net of tax |
|
$ |
12 |
|
$ |
17 |
|
$ |
40 |
|
$ |
40 |
|
|
|
|
Total reclassifications for the period, net of tax |
|
$ |
18 |
|
$ |
50 |
|
$ |
(51) |
|
$ |
155 |
|
|
|
|
(1) |
Included in General and administrative or included as a component of Costs applicable to sales, which are incurred in the inventory/production process. Refer to Note 2 to the Consolidated Financial Statements for the year ended December 31, 2015 filed February 17, 2016 on Form 10-K for information on costs that benefit the inventory/production process. |
|
|||
|
|
|
Nine Months Ended September 30, |
|
||||
|
|
|
2016 |
|
2015 |
|
||
|
Decrease (increase) in operating assets: |
|
|
|
|
|
|
|
|
Trade and other accounts receivables |
|
$ |
34 |
|
$ |
107 |
|
|
Inventories, stockpiles and ore on leach pads |
|
|
(243) |
|
|
(242) |
|
|
EGR refinery and other assets (1) |
|
|
— |
|
|
(36) |
|
|
Other assets |
|
|
(63) |
|
|
58 |
|
|
Increase (decrease) in operating liabilities: |
|
|
|
|
|
|
|
|
Accounts payable |
|
|
(16) |
|
|
17 |
|
|
EGR refinery and other liabilities (1) |
|
|
— |
|
|
36 |
|
|
Reclamation liabilities |
|
|
(35) |
|
|
(48) |
|
|
Other accrued liabilities |
|
|
(109) |
|
|
(74) |
|
|
|
|
$ |
(432) |
|
$ |
(182) |
|
|
(1) |
On July 24, 2015, the Company sold its ownership interest in European Gold Refinery Holdings (“EGR”). |
|
|||
|
|
|
Three Months Ended September 30, 2016 |
|
|||||||||||||
|
|
|
(Issuer) |
|
(Guarantor) |
|
(Non-Guarantor) |
|
|
|
Newmont |
|
|||||
|
|
|
Newmont |
|
|
|
|
|
|
|
|
|
|
Mining |
|
||
|
|
|
Mining |
|
Newmont |
|
Other |
|
|
|
Corporation |
|
|||||
|
Condensed Consolidating Statement of Operation |
|
Corporation |
|
USA |
|
Subsidiaries |
|
Eliminations |
|
Consolidated |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales |
|
$ |
— |
|
$ |
537 |
|
$ |
1,254 |
|
$ |
— |
|
$ |
1,791 |
|
|
Costs and expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs applicable to sales (1) |
|
|
— |
|
|
308 |
|
|
675 |
|
|
— |
|
|
983 |
|
|
Depreciation and amortization |
|
|
1 |
|
|
80 |
|
|
254 |
|
|
— |
|
|
335 |
|
|
Reclamation and remediation |
|
|
— |
|
|
3 |
|
|
22 |
|
|
— |
|
|
25 |
|
|
Exploration |
|
|
— |
|
|
10 |
|
|
29 |
|
|
— |
|
|
39 |
|
|
Advanced projects, research and development |
|
|
— |
|
|
4 |
|
|
30 |
|
|
— |
|
|
34 |
|
|
General and administrative |
|
|
— |
|
|
25 |
|
|
38 |
|
|
— |
|
|
63 |
|
|
Other expense, net |
|
|
— |
|
|
7 |
|
|
14 |
|
|
— |
|
|
21 |
|
|
|
|
|
1 |
|
|
437 |
|
|
1,062 |
|
|
— |
|
|
1,500 |
|
|
Other income (expense) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income, net |
|
|
2 |
|
|
5 |
|
|
(11) |
|
|
— |
|
|
(4) |
|
|
Interest income - intercompany |
|
|
42 |
|
|
(1) |
|
|
14 |
|
|
(55) |
|
|
— |
|
|
Interest expense - intercompany |
|
|
(13) |
|
|
— |
|
|
(42) |
|
|
55 |
|
|
— |
|
|
Interest expense, net |
|
|
(62) |
|
|
(1) |
|
|
(1) |
|
|
— |
|
|
(64) |
|
|
|
|
|
(31) |
|
|
3 |
|
|
(40) |
|
|
— |
|
|
(68) |
|
|
Income (loss) before income and mining tax and other items |
|
|
(32) |
|
|
103 |
|
|
152 |
|
|
— |
|
|
223 |
|
|
Income and mining tax benefit (expense) |
|
|
11 |
|
|
(23) |
|
|
(78) |
|
|
— |
|
|
(90) |
|
|
Equity income (loss) of affiliates |
|
|
(338) |
|
|
(78) |
|
|
2 |
|
|
416 |
|
|
2 |
|
|
Income (loss) from continuing operations |
|
|
(359) |
|
|
2 |
|
|
76 |
|
|
416 |
|
|
135 |
|
|
Income (loss) from discontinued operations |
|
|
— |
|
|
— |
|
|
(448) |
|
|
— |
|
|
(448) |
|
|
Net income (loss) |
|
|
(359) |
|
|
2 |
|
|
(372) |
|
|
416 |
|
|
(313) |
|
|
Net loss (income) attributable to noncontrolling interests |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing operations |
|
|
— |
|
|
— |
|
|
34 |
|
|
— |
|
|
34 |
|
|
Discontinued operations |
|
|
— |
|
|
— |
|
|
(79) |
|
|
— |
|
|
(79) |
|
|
|
|
|
— |
|
|
— |
|
|
(45) |
|
|
— |
|
|
(45) |
|
|
Net income (loss) attributable to Newmont stockholders |
|
$ |
(359) |
|
$ |
2 |
|
$ |
(417) |
|
$ |
416 |
|
$ |
(358) |
|
|
Comprehensive income (loss) |
|
$ |
(319) |
|
$ |
8 |
|
$ |
(340) |
|
$ |
377 |
|
$ |
(274) |
|
|
Comprehensive loss (income) attributable to noncontrolling interests |
|
|
— |
|
|
— |
|
|
33 |
|
|
(78) |
|
|
(45) |
|
|
Comprehensive income (loss) attributable to Newmont stockholders |
|
$ |
(319) |
|
$ |
8 |
|
$ |
(307) |
|
$ |
299 |
|
$ |
(319) |
|
|
(1) |
Excludes Depreciation and amortization and Reclamation and remediation. |
|
|
|
Three Months Ended September 30, 2015 |
|
|||||||||||||
|
|
|
(Issuer) |
|
(Guarantor) |
|
(Non-Guarantor) |
|
|
|
Newmont |
|
|||||
|
|
|
Newmont |
|
|
|
|
|
|
|
Mining |
|
|||||
|
|
|
Mining |
|
Newmont |
|
Other |
|
|
|
Corporation |
|
|||||
|
Condensed Consolidating Statement of Operation |
|
Corporation |
|
USA |
|
Subsidiaries |
|
Eliminations |
|
Consolidated |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales |
|
$ |
— |
|
$ |
468 |
|
$ |
1,092 |
|
$ |
— |
|
$ |
1,560 |
|
|
Costs and expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs applicable to sales (1) |
|
|
— |
|
|
333 |
|
|
592 |
|
|
— |
|
|
925 |
|
|
Depreciation and amortization |
|
|
1 |
|
|
86 |
|
|
205 |
|
|
— |
|
|
292 |
|
|
Reclamation and remediation |
|
|
— |
|
|
3 |
|
|
19 |
|
|
— |
|
|
22 |
|
|
Exploration |
|
|
— |
|
|
6 |
|
|
28 |
|
|
— |
|
|
34 |
|
|
Advanced projects, research and development |
|
|
— |
|
|
3 |
|
|
28 |
|
|
— |
|
|
31 |
|
|
General and administrative |
|
|
— |
|
|
15 |
|
|
44 |
|
|
— |
|
|
59 |
|
|
Other expense, net |
|
|
— |
|
|
17 |
|
|
10 |
|
|
— |
|
|
27 |
|
|
|
|
|
1 |
|
|
463 |
|
|
926 |
|
|
— |
|
|
1,390 |
|
|
Other income (expense) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income, net |
|
|
— |
|
|
14 |
|
|
128 |
|
|
— |
|
|
142 |
|
|
Interest income - intercompany |
|
|
33 |
|
|
(2) |
|
|
3 |
|
|
(34) |
|
|
— |
|
|
Interest expense - intercompany |
|
|
(4) |
|
|
— |
|
|
(30) |
|
|
34 |
|
|
— |
|
|
Interest expense, net |
|
|
(70) |
|
|
(1) |
|
|
(3) |
|
|
— |
|
|
(74) |
|
|
|
|
|
(41) |
|
|
11 |
|
|
98 |
|
|
— |
|
|
68 |
|
|
Income (loss) before income and mining tax and other items |
|
|
(42) |
|
|
16 |
|
|
264 |
|
|
— |
|
|
238 |
|
|
Income and mining tax benefit (expense) |
|
|
15 |
|
|
4 |
|
|
(80) |
|
|
— |
|
|
(61) |
|
|
Equity income (loss) of affiliates |
|
|
246 |
|
|
(51) |
|
|
(3) |
|
|
(210) |
|
|
(18) |
|
|
Income (loss) from continuing operations |
|
|
219 |
|
|
(31) |
|
|
181 |
|
|
(210) |
|
|
159 |
|
|
Income (loss) from discontinued operations |
|
|
— |
|
|
— |
|
|
126 |
|
|
— |
|
|
126 |
|
|
Net income (loss) |
|
|
219 |
|
|
(31) |
|
|
307 |
|
|
(210) |
|
|
285 |
|
|
Net loss (income) attributable to noncontrolling interests |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing operations |
|
|
— |
|
|
— |
|
|
10 |
|
|
(10) |
|
|
— |
|
|
Discontinued operations |
|
|
— |
|
|
— |
|
|
(92) |
|
|
26 |
|
|
(66) |
|
|
|
|
|
— |
|
|
— |
|
|
(82) |
|
|
16 |
|
|
(66) |
|
|
Net income (loss) attributable to Newmont stockholders |
|
$ |
219 |
|
$ |
(31) |
|
$ |
225 |
|
$ |
(194) |
|
$ |
219 |
|
|
Comprehensive income (loss) |
|
$ |
270 |
|
$ |
(33) |
|
$ |
355 |
|
$ |
(256) |
|
$ |
336 |
|
|
Comprehensive loss (income) attributable to noncontrolling interests |
|
|
— |
|
|
— |
|
|
(83) |
|
|
17 |
|
|
(66) |
|
|
Comprehensive income (loss) attributable to Newmont stockholders |
|
$ |
270 |
|
$ |
(33) |
|
$ |
272 |
|
$ |
(239) |
|
$ |
270 |
|
|
(1) |
Excludes Depreciation and amortization and Reclamation and remediation. |
|
|
|
Nine Months Ended September 30, 2016 |
|
|||||||||||||
|
|
|
(Issuer) |
|
(Guarantor) |
|
(Non-Guarantor) |
|
|
|
|
Newmont |
|
||||
|
|
|
Newmont |
|
|
|
|
|
|
|
|
|
|
Mining |
|
||
|
|
|
Mining |
|
Newmont |
|
Other |
|
|
|
Corporation |
|
|||||
|
Condensed Consolidating Statement of Operation |
|
Corporation |
|
USA |
|
Subsidiaries |
|
Eliminations |
|
Consolidated |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales |
|
$ |
— |
|
$ |
1,467 |
|
$ |
3,455 |
|
$ |
— |
|
$ |
4,922 |
|
|
Costs and expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs applicable to sales (1) |
|
|
— |
|
|
898 |
|
|
1,838 |
|
|
— |
|
|
2,736 |
|
|
Depreciation and amortization |
|
|
3 |
|
|
240 |
|
|
649 |
|
|
— |
|
|
892 |
|
|
Reclamation and remediation |
|
|
— |
|
|
10 |
|
|
57 |
|
|
— |
|
|
67 |
|
|
Exploration |
|
|
— |
|
|
25 |
|
|
82 |
|
|
— |
|
|
107 |
|
|
Advanced projects, research and development |
|
|
— |
|
|
9 |
|
|
96 |
|
|
— |
|
|
105 |
|
|
General and administrative |
|
|
— |
|
|
65 |
|
|
113 |
|
|
— |
|
|
178 |
|
|
Other expense, net |
|
|
— |
|
|
21 |
|
|
33 |
|
|
— |
|
|
54 |
|
|
|
|
|
3 |
|
|
1,268 |
|
|
2,868 |
|
|
— |
|
|
4,139 |
|
|
Other income (expense) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income, net |
|
|
2 |
|
|
7 |
|
|
84 |
|
|
— |
|
|
93 |
|
|
Interest income - intercompany |
|
|
103 |
|
|
(1) |
|
|
32 |
|
|
(134) |
|
|
— |
|
|
Interest expense - intercompany |
|
|
(31) |
|
|
— |
|
|
(103) |
|
|
134 |
|
|
— |
|
|
Interest expense, net |
|
|
(197) |
|
|
(4) |
|
|
(3) |
|
|
— |
|
|
(204) |
|
|
|
|
|
(123) |
|
|
2 |
|
|
10 |
|
|
— |
|
|
(111) |
|
|
Income (loss) before income and mining tax and other items |
|
|
(126) |
|
|
201 |
|
|
597 |
|
|
— |
|
|
672 |
|
|
Income and mining tax benefit (expense) |
|
|
44 |
|
|
(42) |
|
|
(557) |
|
|
— |
|
|
(555) |
|
|
Equity income (loss) of affiliates |
|
|
(200) |
|
|
(525) |
|
|
1 |
|
|
716 |
|
|
(8) |
|
|
Income (loss) from continuing operations |
|
|
(282) |
|
|
(366) |
|
|
41 |
|
|
716 |
|
|
109 |
|
|
Income (loss) from discontinued operations |
|
|
— |
|
|
— |
|
|
(225) |
|
|
— |
|
|
(225) |
|
|
Net income (loss) |
|
|
(282) |
|
|
(366) |
|
|
(184) |
|
|
716 |
|
|
(116) |
|
|
Net loss (income) attributable to noncontrolling interests |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing operations |
|
|
— |
|
|
— |
|
|
62 |
|
|
— |
|
|
62 |
|
|
Discontinued operations |
|
|
— |
|
|
— |
|
|
(229) |
|
|
— |
|
|
(229) |
|
|
|
|
|
— |
|
|
— |
|
|
(167) |
|
|
— |
|
|
(167) |
|
|
Net income (loss) attributable to Newmont stockholders |
|
$ |
(282) |
|
$ |
(366) |
|
$ |
(351) |
|
$ |
716 |
|
$ |
(283) |
|
|
Comprehensive income (loss) |
|
$ |
(251) |
|
$ |
(341) |
|
$ |
(184) |
|
$ |
692 |
|
$ |
(84) |
|
|
Comprehensive loss (income) attributable to noncontrolling interests |
|
|
— |
|
|
— |
|
|
(167) |
|
|
— |
|
|
(167) |
|
|
Comprehensive income (loss) attributable to Newmont stockholders |
|
$ |
(251) |
|
$ |
(341) |
|
$ |
(351) |
|
$ |
692 |
|
$ |
(251) |
|
|
(1) |
Excludes Depreciation and amortization and Reclamation and remediation. |
|
|
|
Nine Months Ended September 30, 2015 |
|
|||||||||||||
|
|
|
(Issuer) |
|
(Guarantor) |
|
(Non-Guarantor) |
|
|
|
Newmont |
|
|||||
|
|
|
Newmont |
|
|
|
|
|
|
|
Mining |
|
|||||
|
|
|
Mining |
|
Newmont |
|
Other |
|
|
|
Corporation |
|
|||||
|
Condensed Consolidating Statement of Operation |
|
Corporation |
|
USA |
|
Subsidiaries |
|
Eliminations |
|
Consolidated |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales |
|
$ |
— |
|
$ |
1,415 |
|
$ |
3,218 |
|
$ |
— |
|
$ |
4,633 |
|
|
Costs and expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs applicable to sales (1) |
|
|
— |
|
|
903 |
|
|
1,706 |
|
|
— |
|
|
2,609 |
|
|
Depreciation and amortization |
|
|
3 |
|
|
235 |
|
|
554 |
|
|
— |
|
|
792 |
|
|
Reclamation and remediation |
|
|
— |
|
|
10 |
|
|
55 |
|
|
— |
|
|
65 |
|
|
Exploration |
|
|
— |
|
|
22 |
|
|
93 |
|
|
— |
|
|
115 |
|
|
Advanced projects, research and development |
|
|
— |
|
|
9 |
|
|
78 |
|
|
— |
|
|
87 |
|
|
General and administrative |
|
|
— |
|
|
55 |
|
|
125 |
|
|
— |
|
|
180 |
|
|
Other expense, net |
|
|
— |
|
|
25 |
|
|
48 |
|
|
— |
|
|
73 |
|
|
|
|
|
3 |
|
|
1,259 |
|
|
2,659 |
|
|
— |
|
|
3,921 |
|
|
Other income (expense) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income, net |
|
|
(9) |
|
|
24 |
|
|
121 |
|
|
— |
|
|
136 |
|
|
Interest income - intercompany |
|
|
99 |
|
|
8 |
|
|
12 |
|
|
(119) |
|
|
— |
|
|
Interest expense - intercompany |
|
|
(11) |
|
|
— |
|
|
(108) |
|
|
119 |
|
|
— |
|
|
Interest expense, net |
|
|
(218) |
|
|
(4) |
|
|
(4) |
|
|
— |
|
|
(226) |
|
|
|
|
|
(139) |
|
|
28 |
|
|
21 |
|
|
— |
|
|
(90) |
|
|
Income (loss) before income and mining tax and other items |
|
|
(142) |
|
|
184 |
|
|
580 |
|
|
— |
|
|
622 |
|
|
Income and mining tax benefit (expense) |
|
|
50 |
|
|
(33) |
|
|
(319) |
|
|
— |
|
|
(302) |
|
|
Equity income (loss) of affiliates |
|
|
566 |
|
|
(84) |
|
|
40 |
|
|
(556) |
|
|
(34) |
|
|
Income (loss) from continuing operations |
|
|
474 |
|
|
67 |
|
|
301 |
|
|
(556) |
|
|
286 |
|
|
Income (loss) from discontinued operations |
|
|
— |
|
|
— |
|
|
376 |
|
|
— |
|
|
376 |
|
|
Net income (loss) |
|
|
474 |
|
|
67 |
|
|
677 |
|
|
(556) |
|
|
662 |
|
|
Net loss (income) attributable to noncontrolling interests |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing operations |
|
|
— |
|
|
— |
|
|
(11) |
|
|
— |
|
|
(11) |
|
|
Discontinued operations |
|
|
— |
|
|
— |
|
|
(250) |
|
|
73 |
|
|
(177) |
|
|
|
|
|
— |
|
|
— |
|
|
(261) |
|
|
73 |
|
|
(188) |
|
|
Net income (loss) attributable to Newmont stockholders |
|
$ |
474 |
|
$ |
67 |
|
$ |
416 |
|
$ |
(483) |
|
$ |
474 |
|
|
Comprehensive income (loss) |
|
$ |
563 |
|
$ |
116 |
|
$ |
707 |
|
$ |
(635) |
|
$ |
751 |
|
|
Comprehensive loss (income) attributable to noncontrolling interests |
|
|
— |
|
|
— |
|
|
(256) |
|
|
68 |
|
|
(188) |
|
|
Comprehensive income (loss) attributable to Newmont stockholders |
|
$ |
563 |
|
$ |
116 |
|
$ |
451 |
|
$ |
(567) |
|
$ |
563 |
|
|
(1) |
Excludes Depreciation and amortization and Reclamation and remediation. |
|
|
|
Nine Months Ended September 30, 2016 |
|
|||||||||||||
|
|
|
(Issuer) |
|
(Guarantor) |
|
(Non-Guarantor) |
|
|
|
|
Newmont |
|
||||
|
|
|
Newmont |
|
|
|
|
|
|
|
|
|
|
Mining |
|
||
|
|
|
Mining |
|
Newmont |
|
Other |
|
|
|
|
Corporation |
|
||||
|
Condensed Consolidating Statement of Cash Flows |
|
Corporation |
|
USA |
|
Subsidiaries |
|
Eliminations |
|
Consolidated |
|
|||||
|
Operating activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by operating activities of continuing operations |
|
$ |
775 |
|
$ |
453 |
|
$ |
961 |
|
$ |
(862) |
|
$ |
1,327 |
|
|
Net cash provided by operating activities of discontinued operations |
|
|
— |
|
|
— |
|
|
826 |
|
|
— |
|
|
826 |
|
|
Net cash provided by operating activities |
|
|
775 |
|
|
453 |
|
|
1,787 |
|
|
(862) |
|
|
2,153 |
|
|
Investing activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Additions to property, plant and mine development |
|
|
— |
|
|
(182) |
|
|
(650) |
|
|
— |
|
|
(832) |
|
|
Sales of investments |
|
|
— |
|
|
— |
|
|
184 |
|
|
— |
|
|
184 |
|
|
Sales of other assets |
|
|
— |
|
|
— |
|
|
8 |
|
|
— |
|
|
8 |
|
|
Other |
|
|
— |
|
|
— |
|
|
(21) |
|
|
— |
|
|
(21) |
|
|
Net cash used in investing activities of continuing operations |
|
|
— |
|
|
(182) |
|
|
(479) |
|
|
— |
|
|
(661) |
|
|
Net cash used in investing activities of discontinued operations |
|
|
— |
|
|
— |
|
|
(41) |
|
|
— |
|
|
(41) |
|
|
Net cash used in investing activities |
|
|
— |
|
|
(182) |
|
|
(520) |
|
|
— |
|
|
(702) |
|
|
Financing activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Repayment of debt |
|
|
(773) |
|
|
(2) |
|
|
(2) |
|
|
— |
|
|
(777) |
|
|
Net intercompany borrowings (repayments) |
|
|
39 |
|
|
(587) |
|
|
548 |
|
|
— |
|
|
— |
|
|
Funding from noncontrolling interests |
|
|
— |
|
|
— |
|
|
58 |
|
|
— |
|
|
58 |
|
|
Acquisition of noncontrolling interests |
|
|
— |
|
|
— |
|
|
(19) |
|
|
— |
|
|
(19) |
|
|
Dividends paid to noncontrolling interests |
|
|
— |
|
|
— |
|
|
(146) |
|
|
— |
|
|
(146) |
|
|
Dividends paid to common stockholders |
|
|
(41) |
|
|
(862) |
|
|
— |
|
|
862 |
|
|
(41) |
|
|
Other |
|
|
— |
|
|
— |
|
|
(1) |
|
|
— |
|
|
(1) |
|
|
Net cash (used in) provided by financing activities of continuing operations |
|
|
(775) |
|
|
(1,451) |
|
|
438 |
|
|
862 |
|
|
(926) |
|
|
Net cash (used in) provided by financing activities of discontinued operations |
|
|
— |
|
|
— |
|
|
(319) |
|
|
— |
|
|
(319) |
|
|
Net cash (used in) provided by financing activities |
|
|
(775) |
|
|
(1,451) |
|
|
119 |
|
|
862 |
|
|
(1,245) |
|
|
Effect of exchange rate changes on cash |
|
|
— |
|
|
— |
|
|
4 |
|
|
— |
|
|
4 |
|
|
Net change in cash and cash equivalents |
|
|
— |
|
|
(1,180) |
|
|
1,390 |
|
|
— |
|
|
210 |
|
|
Less net change in cash and cash equivalents in assets held for sale |
|
|
— |
|
|
— |
|
|
474 |
|
|
— |
|
|
474 |
|
|
|
|
|
— |
|
|
(1,180) |
|
|
916 |
|
|
— |
|
|
(264) |
|
|
Cash and cash equivalents at beginning of period |
|
|
— |
|
|
1,181 |
|
|
1,182 |
|
|
— |
|
|
2,363 |
|
|
Cash and cash equivalents at end of period |
|
$ |
— |
|
$ |
1 |
|
$ |
2,098 |
|
$ |
— |
|
$ |
2,099 |
|
|
|
|
Nine Months Ended September 30, 2015 |
|
|||||||||||||
|
|
|
(Issuer) |
|
(Guarantor) |
|
(Non-Guarantor) |
|
|
|
|
Newmont |
|
||||
|
|
|
Newmont |
|
|
|
|
|
|
|
|
|
|
Mining |
|
||
|
|
|
Mining |
|
Newmont |
|
Other |
|
|
|
|
Corporation |
|
||||
|
Condensed Consolidating Statement of Cash Flows |
|
Corporation |
|
USA |
|
Subsidiaries |
|
Eliminations |
|
Consolidated |
|
|||||
|
Operating activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by operating activities of continuing operations |
|
$ |
63 |
|
$ |
307 |
|
$ |
934 |
|
$ |
— |
|
$ |
1,304 |
|
|
Net cash provided by operating activities of discontinued operations |
|
|
— |
|
|
— |
|
|
569 |
|
|
— |
|
|
569 |
|
|
Net cash provided by operating activities |
|
|
63 |
|
|
307 |
|
|
1,503 |
|
|
— |
|
|
1,873 |
|
|
Investing activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Additions to property, plant and mine development |
|
|
— |
|
|
(241) |
|
|
(648) |
|
|
— |
|
|
(889) |
|
|
Acquisitions, net |
|
|
(821) |
|
|
— |
|
|
2 |
|
|
— |
|
|
(819) |
|
|
Sales of investments |
|
|
— |
|
|
25 |
|
|
4 |
|
|
— |
|
|
29 |
|
|
Sales of other assets |
|
|
— |
|
|
18 |
|
|
108 |
|
|
— |
|
|
126 |
|
|
Other |
|
|
— |
|
|
— |
|
|
(47) |
|
|
— |
|
|
(47) |
|
|
Net cash used in investing activities of continuing operations |
|
|
(821) |
|
|
(198) |
|
|
(581) |
|
|
— |
|
|
(1,600) |
|
|
Net cash used in investing activities of discontinued operations |
|
|
— |
|
|
— |
|
|
(52) |
|
|
— |
|
|
(52) |
|
|
Net cash used in investing activities |
|
|
(821) |
|
|
(198) |
|
|
(633) |
|
|
— |
|
|
(1,652) |
|
|
Financing activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Repayment of debt |
|
|
(200) |
|
|
(2) |
|
|
(25) |
|
|
— |
|
|
(227) |
|
|
Net intercompany borrowings (repayments) |
|
|
323 |
|
|
(81) |
|
|
(242) |
|
|
— |
|
|
— |
|
|
Proceeds from stock issuance, net |
|
|
675 |
|
|
— |
|
|
— |
|
|
— |
|
|
675 |
|
|
Sale of noncontrolling interests |
|
|
— |
|
|
3 |
|
|
34 |
|
|
— |
|
|
37 |
|
|
Funding from noncontrolling interests |
|
|
— |
|
|
— |
|
|
89 |
|
|
— |
|
|
89 |
|
|
Acquisition of noncontrolling interests |
|
|
— |
|
|
— |
|
|
(8) |
|
|
— |
|
|
(8) |
|
|
Dividends paid to noncontrolling interests |
|
|
— |
|
|
— |
|
|
(3) |
|
|
— |
|
|
(3) |
|
|
Dividends paid to common stockholders |
|
|
(38) |
|
|
— |
|
|
— |
|
|
— |
|
|
(38) |
|
|
Other |
|
|
(2) |
|
|
1 |
|
|
1 |
|
|
— |
|
|
— |
|
|
Net cash (used in) provided by financing activities of continuing operations |
|
|
758 |
|
|
(79) |
|
|
(154) |
|
|
— |
|
|
525 |
|
|
Net cash (used in) provided by financing activities of discontinued operations |
|
|
— |
|
|
— |
|
|
(164) |
|
|
— |
|
|
(164) |
|
|
Net cash (used in) provided by financing activities |
|
|
758 |
|
|
(79) |
|
|
(318) |
|
|
— |
|
|
361 |
|
|
Effect of exchange rate changes on cash |
|
|
— |
|
|
— |
|
|
(21) |
|
|
— |
|
|
(21) |
|
|
Net change in cash and cash equivalents |
|
|
— |
|
|
30 |
|
|
531 |
|
|
— |
|
|
561 |
|
|
Less net change in cash and cash equivalents in assets held for sale |
|
|
— |
|
|
— |
|
|
362 |
|
|
— |
|
|
362 |
|
|
|
|
|
— |
|
|
30 |
|
|
169 |
|
|
— |
|
|
199 |
|
|
Cash and cash equivalents at beginning of period |
|
|
— |
|
|
1,097 |
|
|
1,134 |
|
|
— |
|
|
2,231 |
|
|
Cash and cash equivalents at end of period |
|
$ |
— |
|
$ |
1,127 |
|
$ |
1,303 |
|
$ |
— |
|
$ |
2,430 |
|
|
|
|
At September 30, 2016 |
|
|||||||||||||
|
|
|
(Issuer) |
|
(Guarantor) |
|
(Non-Guarantor) |
|
|
|
|
Newmont |
|
||||
|
|
|
Newmont |
|
|
|
|
|
|
|
|
|
|
Mining |
|
||
|
|
|
Mining |
|
Newmont |
|
Other |
|
|
|
Corporation |
|
|||||
|
Condensed Consolidating Balance Sheet |
|
Corporation |
|
USA |
|
Subsidiaries |
|
Eliminations |
|
Consolidated |
|
|||||
|
Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
— |
|
$ |
1 |
|
$ |
2,098 |
|
$ |
— |
|
$ |
2,099 |
|
|
Trade receivables |
|
|
— |
|
|
38 |
|
|
103 |
|
|
— |
|
|
141 |
|
|
Other accounts receivables |
|
|
— |
|
|
18 |
|
|
134 |
|
|
— |
|
|
152 |
|
|
Intercompany receivable |
|
|
6,771 |
|
|
5,342 |
|
|
12,027 |
|
|
(24,140) |
|
|
— |
|
|
Investments |
|
|
— |
|
|
— |
|
|
80 |
|
|
— |
|
|
80 |
|
|
Inventories |
|
|
— |
|
|
165 |
|
|
444 |
|
|
— |
|
|
609 |
|
|
Stockpiles and ore on leach pads |
|
|
— |
|
|
245 |
|
|
540 |
|
|
— |
|
|
785 |
|
|
Other current assets |
|
|
— |
|
|
40 |
|
|
83 |
|
|
— |
|
|
123 |
|
|
Current assets held for sale |
|
|
— |
|
|
— |
|
|
3,124 |
|
|
— |
|
|
3,124 |
|
|
Current assets |
|
|
6,771 |
|
|
5,849 |
|
|
18,633 |
|
|
(24,140) |
|
|
7,113 |
|
|
Property, plant and mine development, net |
|
|
22 |
|
|
3,138 |
|
|
10,045 |
|
|
(35) |
|
|
13,170 |
|
|
Investments |
|
|
— |
|
|
15 |
|
|
224 |
|
|
— |
|
|
239 |
|
|
Investments in subsidiaries |
|
|
14,007 |
|
|
1,359 |
|
|
— |
|
|
(15,366) |
|
|
— |
|
|
Stockpiles and ore on leach pads |
|
|
— |
|
|
620 |
|
|
1,257 |
|
|
— |
|
|
1,877 |
|
|
Deferred income tax assets |
|
|
291 |
|
|
292 |
|
|
1,202 |
|
|
(490) |
|
|
1,295 |
|
|
Non-current intercompany receivable |
|
|
1,637 |
|
|
578 |
|
|
98 |
|
|
(2,313) |
|
|
— |
|
|
Other non-current assets |
|
|
— |
|
|
204 |
|
|
183 |
|
|
— |
|
|
387 |
|
|
Total assets |
|
$ |
22,728 |
|
$ |
12,055 |
|
$ |
31,642 |
|
$ |
(42,344) |
|
$ |
24,081 |
|
|
Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Debt |
|
$ |
555 |
|
$ |
3 |
|
$ |
6 |
|
$ |
— |
|
$ |
564 |
|
|
Accounts payable |
|
|
— |
|
|
58 |
|
|
246 |
|
|
— |
|
|
304 |
|
|
Intercompany payable |
|
|
6,379 |
|
|
4,724 |
|
|
13,037 |
|
|
(24,140) |
|
|
— |
|
|
Employee-related benefits |
|
|
— |
|
|
116 |
|
|
125 |
|
|
— |
|
|
241 |
|
|
Income and mining taxes |
|
|
— |
|
|
9 |
|
|
88 |
|
|
— |
|
|
97 |
|
|
Other current liabilities |
|
|
65 |
|
|
101 |
|
|
290 |
|
|
— |
|
|
456 |
|
|
Current liabilities held for sale |
|
|
— |
|
|
— |
|
|
874 |
|
|
— |
|
|
874 |
|
|
Current liabilities |
|
|
6,999 |
|
|
5,011 |
|
|
14,666 |
|
|
(24,140) |
|
|
2,536 |
|
|
Debt |
|
|
4,540 |
|
|
5 |
|
|
7 |
|
|
— |
|
|
4,552 |
|
|
Reclamation and remediation liabilities |
|
|
— |
|
|
238 |
|
|
1,349 |
|
|
— |
|
|
1,587 |
|
|
Deferred income tax liabilities |
|
|
5 |
|
|
87 |
|
|
961 |
|
|
(490) |
|
|
563 |
|
|
Employee-related benefits |
|
|
1 |
|
|
233 |
|
|
144 |
|
|
— |
|
|
378 |
|
|
Non-current intercompany payable |
|
|
81 |
|
|
— |
|
|
2,267 |
|
|
(2,348) |
|
|
— |
|
|
Other non-current liabilities |
|
|
— |
|
|
30 |
|
|
326 |
|
|
— |
|
|
356 |
|
|
Total liabilities |
|
|
11,626 |
|
|
5,604 |
|
|
19,720 |
|
|
(26,978) |
|
|
9,972 |
|
|
Equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Newmont stockholders’ equity |
|
|
11,102 |
|
|
6,451 |
|
|
8,915 |
|
|
(15,366) |
|
|
11,102 |
|
|
Noncontrolling interests |
|
|
— |
|
|
— |
|
|
3,007 |
|
|
— |
|
|
3,007 |
|
|
Total equity |
|
|
11,102 |
|
|
6,451 |
|
|
11,922 |
|
|
(15,366) |
|
|
14,109 |
|
|
Total liabilities and equity |
|
$ |
22,728 |
|
$ |
12,055 |
|
$ |
31,642 |
|
$ |
(42,344) |
|
$ |
24,081 |
|
|
|
|
At December 31, 2015 |
|
|||||||||||||
|
|
|
(Issuer) |
|
(Guarantor) |
|
(Non-Guarantor) |
|
|
|
Newmont |
|
|||||
|
|
|
Newmont |
|
|
|
|
|
|
|
Mining |
|
|||||
|
|
|
Mining |
|
Newmont |
|
Other |
|
|
|
Corporation |
|
|||||
|
Condensed Consolidating Balance Sheet |
|
Corporation |
|
USA |
|
Subsidiaries |
|
Eliminations |
|
Consolidated |
|
|||||
|
Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
— |
|
$ |
1,181 |
|
$ |
1,182 |
|
$ |
— |
|
$ |
2,363 |
|
|
Trade receivables |
|
|
— |
|
|
31 |
|
|
50 |
|
|
— |
|
|
81 |
|
|
Other accounts receivables |
|
|
— |
|
|
— |
|
|
134 |
|
|
— |
|
|
134 |
|
|
Intercompany receivable |
|
|
4,587 |
|
|
6,212 |
|
|
8,101 |
|
|
(18,900) |
|
|
— |
|
|
Investments |
|
|
— |
|
|
— |
|
|
19 |
|
|
— |
|
|
19 |
|
|
Inventories |
|
|
— |
|
|
158 |
|
|
403 |
|
|
— |
|
|
561 |
|
|
Stockpiles and ore on leach pads |
|
|
— |
|
|
201 |
|
|
581 |
|
|
— |
|
|
782 |
|
|
Other current assets |
|
|
— |
|
|
53 |
|
|
30 |
|
|
— |
|
|
83 |
|
|
Current assets held for sale |
|
|
— |
|
|
— |
|
|
960 |
|
|
— |
|
|
960 |
|
|
Current assets |
|
|
4,587 |
|
|
7,836 |
|
|
11,460 |
|
|
(18,900) |
|
|
4,983 |
|
|
Property, plant and mine development, net |
|
|
26 |
|
|
3,179 |
|
|
10,043 |
|
|
(38) |
|
|
13,210 |
|
|
Investments |
|
|
— |
|
|
15 |
|
|
387 |
|
|
— |
|
|
402 |
|
|
Investments in subsidiaries |
|
|
15,650 |
|
|
3,886 |
|
|
2,820 |
|
|
(22,356) |
|
|
— |
|
|
Stockpiles and ore on leach pads |
|
|
— |
|
|
621 |
|
|
1,275 |
|
|
— |
|
|
1,896 |
|
|
Deferred income tax assets |
|
|
223 |
|
|
757 |
|
|
1,222 |
|
|
(490) |
|
|
1,712 |
|
|
Non-current intercompany receivable |
|
|
1,742 |
|
|
434 |
|
|
108 |
|
|
(2,284) |
|
|
— |
|
|
Other non-current assets |
|
|
— |
|
|
253 |
|
|
192 |
|
|
— |
|
|
445 |
|
|
Non-current assets held for sale |
|
|
— |
|
|
— |
|
|
2,482 |
|
|
— |
|
|
2,482 |
|
|
Total assets |
|
$ |
22,228 |
|
$ |
16,981 |
|
$ |
29,989 |
|
$ |
(44,068) |
|
$ |
25,130 |
|
|
Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Debt |
|
$ |
— |
|
$ |
3 |
|
$ |
6 |
|
$ |
— |
|
$ |
9 |
|
|
Accounts payable |
|
|
— |
|
|
78 |
|
|
237 |
|
|
— |
|
|
315 |
|
|
Intercompany payable |
|
|
4,888 |
|
|
5,495 |
|
|
8,517 |
|
|
(18,900) |
|
|
— |
|
|
Employee-related benefits |
|
|
— |
|
|
136 |
|
|
142 |
|
|
— |
|
|
278 |
|
|
Income and mining taxes |
|
|
— |
|
|
— |
|
|
38 |
|
|
— |
|
|
38 |
|
|
Other current liabilities |
|
|
70 |
|
|
133 |
|
|
284 |
|
|
— |
|
|
487 |
|
|
Current liabilities held for sale |
|
|
— |
|
|
— |
|
|
289 |
|
|
— |
|
|
289 |
|
|
Current liabilities |
|
|
4,958 |
|
|
5,845 |
|
|
9,513 |
|
|
(18,900) |
|
|
1,416 |
|
|
Debt |
|
|
5,839 |
|
|
7 |
|
|
8 |
|
|
— |
|
|
5,854 |
|
|
Reclamation and remediation liabilities |
|
|
— |
|
|
231 |
|
|
1,324 |
|
|
— |
|
|
1,555 |
|
|
Deferred income tax liabilities |
|
|
— |
|
|
85 |
|
|
943 |
|
|
(490) |
|
|
538 |
|
|
Employee-related benefits |
|
|
— |
|
|
283 |
|
|
126 |
|
|
— |
|
|
409 |
|
|
Non-current intercompany payable |
|
|
81 |
|
|
— |
|
|
2,241 |
|
|
(2,322) |
|
|
— |
|
|
Other non-current liabilities |
|
|
— |
|
|
37 |
|
|
273 |
|
|
— |
|
|
310 |
|
|
Non-current liabilities held for sale |
|
|
— |
|
|
— |
|
|
756 |
|
|
— |
|
|
756 |
|
|
Total liabilities |
|
|
10,878 |
|
|
6,488 |
|
|
15,184 |
|
|
(21,712) |
|
|
10,838 |
|
|
Equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Newmont stockholders’ equity |
|
|
11,350 |
|
|
10,493 |
|
|
10,202 |
|
|
(20,695) |
|
|
11,350 |
|
|
Noncontrolling interests |
|
|
— |
|
|
— |
|
|
4,603 |
|
|
(1,661) |
|
|
2,942 |
|
|
Total equity |
|
|
11,350 |
|
|
10,493 |
|
|
14,805 |
|
|
(22,356) |
|
|
14,292 |
|
|
Total liabilities and equity |
|
$ |
22,228 |
|
$ |
16,981 |
|
$ |
29,989 |
|
$ |
(44,068) |
|
$ |
25,130 |
|
|
|
|||||||||||||||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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|
|
||||||||||||||||||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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|
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|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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|||||||||||||||||||||||||
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|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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