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NEM · Newmont

31 filings

10-K

NEM 10-K Annual Reports

Newmont - 31 annual reports

Filing record · 2016–202610-K1210-Q338-K155

2025
Newmont Annual Report, Year Ended Dec 31, 2025
Newmont Corporation (NEM) reported a significant year-over-year increase in net income for the year ended December 31, 2025, driven by higher sales primarily attributed to increased average realized gold prices, partially offset by the impact of divestitures and higher tax expenses. The company successfully completed a series of divestitures of non-core assets throughout 2024 and 2025, streamlining its portfolio following the acquisition of Newcrest Mining Limited in late 2023. This strategic portfolio optimization, coupled with strong operational performance across its key mining sites, has positioned Newmont for continued value creation. Financially, the company reported robust free cash flow generation, reflecting improved operational efficiency and favorable commodity prices. Newmont also maintained a strong liquidity position, with substantial cash and cash equivalents and an undrawn revolving credit facility, providing flexibility for ongoing investments in growth projects and shareholder returns. The company continues to emphasize ESG principles, integrating sustainability into its business strategy and operations, including targets for greenhouse gas emissions reduction.
Feb 19, 2026
2024
Newmont Annual Report, Year Ended Dec 31, 2024
Newmont Corporation reported strong financial results for the year ended December 31, 2024, with Net Income from continuing operations attributable to Newmont stockholders of $3,280 million, or $2.86 per diluted share, a significant increase from the prior year, largely driven by the acquisition of Newcrest and higher average realized prices for all metals. The company also reported robust Adjusted EBITDA of $8,675 million and net cash provided by operating activities of $6,318 million, underscoring improved operational performance and effective financial management. Newmont continued its portfolio optimization, completing the sale of its Telfer segment and announcing agreements to divest five other non-core assets, which is expected to streamline operations and enhance focus on core Tier 1 assets. The company also highlighted progress on key development projects like Ahafo North and Tanami Expansion 2, positioning it for stable future production and value creation. Despite a strong financial showing, investors should note the ongoing risks related to metal price volatility, operational costs, and the complexities of managing a global portfolio with exposure to diverse regulatory and political environments. The company's commitment to ESG principles remains evident, with continued investment in sustainability initiatives. However, investors should remain aware of potential headwinds from geopolitical factors, inflationary pressures, and evolving climate-related regulations, which could impact future costs and operations.
Feb 21, 2025
2023
Newmont Annual Report, Year Ended Dec 31, 2023
Newmont Corporation reported a net loss of $2.52 billion, or $3.00 per diluted share, for the year ended December 31, 2023. This loss was primarily driven by a significant increase in reclamation and remediation expenses, impairment charges, costs associated with the acquisition and integration of Newcrest Mining Limited, a labor strike at Peñasquito, and lower production at the Akyem mine. Despite these challenges, the company benefited from higher average realized prices for gold, silver, and copper. The company also highlighted its strong financial position, ending the year with $3.0 billion in cash and approximately $6.1 billion in liquidity. Newmont also announced plans to divest six non-core assets and one development project, signaling a strategic focus on optimizing its portfolio. The successful integration of Newcrest is a key focus for management, aimed at realizing anticipated synergies and cost savings, while managing the inherent risks and complexities of integrating such a large acquisition.
Feb 29, 2024
2022
Newmont Annual Report, Year Ended Dec 31, 2022
Newmont Corporation's 2022 10-K filing reveals a challenging year marked by a net loss of $369 million, a significant shift from the $233 million net income in 2021. This downturn was primarily driven by substantial impairment charges ($1.32 billion) related to goodwill and long-lived assets, particularly at the Cerro Negro and Porcupine operations, coupled with increased costs applicable to sales due to inflation in fuel, energy, and labor. Despite these headwinds, Newmont maintained its position as a leading gold producer, with consolidated gold production of 5.8 million ounces. The company's diversified portfolio across North America, South America, Australia, Africa, and Nevada provides some resilience. Management is focusing on optimizing capital allocation to current operations and exploring strategic options for projects like Yanacocha Sulfides. Investors should note the company's commitment to ESG practices and its progress in areas like gender diversity, though the overall financial performance in 2022 was impacted by macroeconomic factors and specific operational challenges.
Feb 23, 2023
2021-A
Newmont Annual Report (Amendment), Year Ended Dec 31, 2021
Newmont Corporation's 2021 10-K filing reveals a year of mixed financial performance, with total sales reaching $12.22 billion, an increase from $11.50 billion in 2020, primarily driven by higher gold prices and increased production from the Nevada Gold Mines joint venture. However, net income attributable to stockholders significantly decreased to $1.17 billion ($1.46 per share) from $2.83 billion ($3.52 per share) in the prior year. This decline was largely due to a substantial increase in reclamation and remediation liabilities, which rose from $3.82 billion to $5.84 billion, driven by changes in estimates and the Yanacocha site operations. Despite this, the company maintained a strong liquidity position with $5.09 billion in cash, cash equivalents, and restricted cash at year-end 2021. The company also navigated significant operational changes, including the acquisition of the remaining 85.1% of GT Gold Corporation and a substantial loss on assets held for sale related to the Conga project's mill assets. The report highlights the critical audit matters of reclamation liabilities and goodwill impairment assessment, underscoring the significant judgment involved in estimating these areas. Investors should note the substantial increase in reclamation liabilities and the impact it had on profitability, as well as the ongoing scrutiny of environmental regulations.
Jul 28, 2022
2021
Newmont Annual Report, Year Ended Dec 31, 2021
Newmont Corporation's 2021 10-K filing reveals a company firmly established as a global leader in gold production, with significant operations across multiple continents. The company demonstrated resilience in 2021, navigating various operational challenges including the ongoing impacts of COVID-19 and managing costs effectively. While facing headwinds, Newmont's commitment to sustainability and ESG principles remains a core focus, reflected in its ambitious emissions reduction targets and investments in green mining technologies. Financially, Newmont is working to optimize its balance sheet, evidenced by debt management activities and a commitment to returning capital to shareholders through dividends and share repurchases. The company's robust reserves and resources provide a solid foundation for future production, though investors should remain aware of the inherent risks in the mining industry, including commodity price volatility, operational challenges, and regulatory environments across its diverse global footprint. The company's strategic alliances and capital allocation plans suggest a focus on long-term value creation and sustainable growth.
Feb 24, 2022
2020
Newmont Annual Report, Year Ended Dec 31, 2020
Newmont Corporation's 2020 10-K filing highlights a strong year, demonstrating resilience despite the COVID-19 pandemic. The company successfully navigated operational challenges, including temporary site shutdowns, while achieving significant sales growth driven by higher gold, copper, silver, lead, and zinc prices. Key strategic moves, such as the integration of Goldcorp and the formation of the Nevada Gold Mines joint venture with Barrick, continued to shape the company's operational landscape and financial performance. Despite pandemic-related disruptions and associated costs, Newmont maintained a solid financial position, supported by robust operating cash flow and prudent capital management. The company reported substantial proven and probable gold reserves, underscoring its long-term resource base. Newmont also continued its focus on Environmental, Social, and Governance (ESG) principles, investing in climate initiatives and maintaining its commitment to sustainable and responsible mining practices. The filing also details the company's comprehensive risk management strategies, particularly concerning commodity price volatility, operational risks across its global footprint, and the ongoing impacts of the COVID-19 pandemic.
Feb 18, 2021
2019
Newmont Annual Report, Year Ended Dec 31, 2019
Newmont Corporation's 2019 10-K filing details a transformative year, marked by the significant acquisition of Goldcorp and the formation of the Nevada Gold Mines (NGM) joint venture with Barrick. These strategic moves substantially expanded Newmont's global footprint and production capacity. Despite operational disruptions such as the Musselwhite mine fire and community blockades at Peñasquito, the company reported a significant increase in sales and a substantial improvement in net income compared to the prior year, driven by higher gold prices and increased production from acquired assets. The company also highlighted its ongoing commitment to sustainability, safety, and returning value to shareholders through dividends and share repurchases, while navigating a complex global operating environment with various geopolitical and economic risks.
Feb 20, 2020
2018
Newmont Annual Report, Year Ended Dec 31, 2018
Newmont Corp (NEM) closed 2018 with a mixed but improving profile: attributable net income from continuing operations rose to $280 million ($0.53 per diluted share) from a loss in 2017, largely on lower income tax expense and a $100 million gain from selling its royalty portfolio to Maverix Metals. Adjusted net income fell 8% to $718 million ($1.34 per diluted share), and Adjusted EBITDA declined 2% to $2.6 billion, reflecting lower gold output. Attributable gold production fell 3% to 5.1 million ounces, driven by lower grades and leach placements at Carlin, Phoenix, CC&V and Yanacocha, partially offset by gains at Tanami and Ahafo. Consolidated gold sales declined 2% and costs applicable to sales per ounce rose 2%, so margin pressure was visible even as gold prices held at about $1,260 per ounce realized. The balance sheet remains a strength. Newmont ended the year with $3.4 billion in cash and $0.9 billion of net debt, operating cash flow from continuing operations was $1.8 billion, and free cash flow was $0.8 billion. Dividends were raised to $0.56 per share for the year, and the company remains investment-grade (S&P BBB, Moody's Baa2). Offsetting these positives were $369 million of long-lived asset impairments, mainly at North American exploration properties and the Emigrant mine, a $150 million valuation allowance on U.S. deferred tax assets, and a 2018 fatal accident count of seven workers, which the filing highlights as a serious operational and reputational concern. The dominant event for investors is the pending all-stock acquisition of Goldcorp, announced January 14, 2019, for roughly $10 billion. Goldcorp holders would receive 0.3280 Newmont shares plus $0.02 in cash per share, with closing expected in Q2 2019 subject to shareholder and regulatory approvals. The filing flags integration, synergy, dilution, political-jurisdiction and reserve-reporting risks, and a $650 million termination fee exposure. Investors should weigh the strategic scale benefit against these execution and dilution risks.
Feb 21, 2019
2017
Newmont Annual Report, Year Ended Dec 31, 2017
Newmont Mining's 2017 Form 10-K shows a year of recovery in operating results and cash generation, with a sharp rise in the GAAP tax line that kept bottom-line earnings negative. Sales rose 9.5% to $7.35 billion, driven by higher gold ounces from a full year at Merian and Long Canyon and higher realized gold prices ($1,255/oz vs. $1,243/oz). Attributable gold production increased 8% to 5.3 million ounces. Adjusted net income was $780 million ($1.46 per diluted share, up 26%) and Adjusted EBITDA was $2.65 billion, up 12%. Operating cash flow from continuing operations rose 22% to $2.35 billion, and free cash flow reached $1.48 billion, up 88%. GAAP results remained weak. Net loss attributable to Newmont stockholders was $(98) million, or $(0.18) per diluted share, and continuing operations loss was $(60) million. The result was weighed down by a $1.1 billion income and mining tax expense, which included provisional charges from the Tax Cuts and Jobs Act: a $346 million re-measurement of deferred tax assets, a $395 million restructuring charge, and a $48 million AMT credit benefit. Management has flagged that these figures are provisional and may be revised within the one-year measurement period. Balance sheet strength improved, with $3.26 billion in cash, net debt reduced to $806 million from $1.86 billion, and no borrowings on the $3 billion revolver. For investors, the key items are the reserve base (68.5 million attributable ounces, flat year over year and fully replacing depletion at a constant gold price), the project pipeline (Subika Underground, Ahafo Mill Expansion, Twin Underground, Quecher Main, Tanami Power), and capital allocation. In February 2018 the company eliminated its gold-price-linked dividend formula and declared a $0.14 quarterly dividend, a notable shift in policy. Ongoing risks include Peru political and social exposure at Yanacocha and the Conga project (in care and maintenance), Suriname political risk at Merian, the Australian Taxation Office capital gains dispute (approximately A$83 million claimed), and the company's unhedged exposure to gold and copper prices.
Feb 22, 2018
2016
Newmont Annual Report, Year Ended Dec 31, 2016
Newmont Mining (NYSE: NEM) closed 2016 as a gold-led producer in transition: it sold its 48.5% interest in Batu Hijau (Indonesia) on November 2, 2016, and reported a net loss attributable to stockholders of $(627) million, or $(1.18) per diluted share, driven largely by a $970 million pre-tax impairment at Yanacocha (Peru) and a $600 million loss on the Batu Hijau sale. Results from continuing operations were $(220) million, or $(0.41) per share. Underlying operations improved: sales rose 10% to $6,711 million, consolidated gold production increased to 5.24 million ounces, and gold all-in sustaining costs fell to $912 per ounce. Adjusted net income was $619 million, or $1.16 per diluted share, and Free Cash Flow reached $784 million, supporting a debt reduction of roughly $1.2 billion and a balance sheet with $2.76 billion in cash and $4.6 billion in debt at year-end. The filing highlights several risks for investors. Yanacocha's closure plan revision increased reclamation obligations by $425 million and triggered a valuation allowance and impairment, while Conga remains on hold, with management not expecting development for at least five years. Peru's new water-quality standards may require costly treatment facilities, and Yanacocha's production is declining. Gold-price sensitivity is substantial: a $100 per ounce decline in the long-term price assumption could cause stockpile write-downs of about $150 million and deferred tax asset write-downs of about $1.5 billion. The company also disclosed an ongoing SEC and Department of Justice investigation into overseas business practices. Newmont does not hedge its gold or copper sales, so its earnings leverage to metal prices is direct. Looking forward, the company is focused on developing a pipeline of longer-life projects, including Subika Underground, the Ahafo Mill Expansion, Quecher Main, and Twin Underground, with investment decisions targeted for 2017. Debt maturities are manageable at $575 million in 2017 and $626 million in 2019. The quarterly dividend was set at $0.05 per share, with a payout tied to the gold price.
Feb 21, 2017
2015
Newmont Annual Report, Year Ended Dec 31, 2015
Newmont Mining (NYSE: NEM) closed 2015 with sales of $7.7 billion, up 6% year over year, as higher gold and copper volumes offset lower realized prices. The average realized gold price fell 9% to $1,141 per ounce and the realized copper price fell 20% to $2.13 per pound. Net income attributable to Newmont stockholders was $0.43 per share (adjusted net income was $0.98 per share), a sharp improvement from the large 2013 impairment-driven loss. Consolidated gold production rose 9% to 5.7 million ounces, and all-in sustaining costs fell to $1,002 per ounce, with the Batu Hijau ramp-up and the CC&V acquisition contributing to volume growth. Adjusted EBITDA rose to $2.7 billion from $2.1 billion, and free cash flow turned positive at $756 million after a deficit in 2013 (see the cash flow reconciliation). Balance sheet and capital allocation: Net debt fell to $3.5 billion from $4.2 billion, cash rose to $2.8 billion, and total debt was $6.2 billion. The company raised $675 million in equity to fund the $821 million acquisition of the Cripple Creek & Victor mine, and it sold Waihi, Valcambi and TMAC interests for additional proceeds. Dividends were cut to $0.025 per quarter. Key risks in the filing include Indonesian export permits and Contract of Work renegotiations at Batu Hijau, the political and community opposition that has halted the Conga project in Peru, Ghana's new fiscal terms, the Peru valuation allowance, and credit rating pressure (Moody's placed the company on review for downgrade in January 2016). Reserves declined to 73.7 million attributable ounces of gold (from 81.6 million) and 5.7 billion pounds of copper, largely because of a lower gold price assumption ($1,200 from $1,300) and the removal of Conga from reserves. Management is focused on the Merian, Long Canyon and Tanami expansion projects, and it expects Merian to reach commercial production in late 2016.
Feb 17, 2016
2014
Newmont Annual Report, Year Ended Dec 31, 2014
Newmont Mining (NEM) closed 2014 with a challenging year: sales fell 13% to $7,292 million, and the company posted a net loss attributable to Newmont stockholders of $(2,534) million in 2013 and net income of $1.02 per share in 2014 (down from a 2013 loss). The 2014 result was driven by lower average realized gold ($1,258/oz, down 10%) and copper ($2.65/lb, down 11%) prices, a 14% decline in consolidated gold ounces sold to 5.24 million, and the divestiture of Midas, Jundee and La Herradura. Improved cost discipline helped: gold costs applicable to sales fell 9% to $706/oz, and the company reported all-in sustaining costs of $1,002/oz for gold. Net cash from continuing operations was $1,451 million, and capital expenditures were $1,110 million. Net debt fell to $4,243 million from $5,185 million, helped by asset sale proceeds of $661 million, and the company held $2,403 million in cash against a $3,000 million undrawn revolver. The filing highlights material risks. Batu Hijau (Indonesia) was shut in June 2014 after export restrictions, and it operates under a six-month export permit expiring in mid-March 2015 while the Contract of Work is renegotiated. Conga (Peru) remains suspended in its full development form, and Merian (Suriname) was fully funded in 2014 with production expected in late 2016. Credit ratings were lowered during 2014 (S&P to BBB with negative outlook; Moody's to Baa2 negative). The company also recorded a $4,352 million write-down in 2013, concentrated at Boddington and Long Canyon, and continues to carry a $2,817 million deferred tax valuation allowance. The dividend was cut to $0.225 per share for 2014 from $1.225 in 2013, now tied to a gold-price-linked, non-binding policy. For investors, the central question is whether cost reductions and project development can offset lower gold prices and the Indonesia and Peru political risks. Reserves of 82.2 million attributable gold ounces and 7.93 billion pounds of copper provide a long reserve life, but the sensitivity to gold price is significant: at a $1,200/oz price, reserves would decline roughly 13%.
Feb 20, 2015
2013
Newmont Annual Report, Year Ended Dec 31, 2013
Newmont Mining (NEM) closed 2013 as a deeply loss-making year, driven by a $4.35 billion pre-tax write-down of property, plant and mine development, primarily at Boddington (Australia) and Long Canyon (Nevada), which pushed net loss attributable to Newmont stockholders to $(2.46) billion, or $(4.94) per share, versus net income of $1.81 billion in 2012. Underlying performance weakened as average realized gold fell 16% to $1,393/oz and costs applicable to sales rose 12% to $761/oz on stockpile and leach pad write-downs of about $1.2 billion. Adjusted net income fell to $695 million, or $1.40 per share, from $1.85 billion in 2012, and all-in sustaining costs reached $1,104/oz. The balance sheet absorbed the impairments: total assets fell to $24.8 billion from $29.7 billion, Newmont stockholders' equity dropped to $10.1 billion from $13.8 billion, and total debt rose to $6.7 billion. Management's 2014 guidance calls for lower gold output (5.0-5.4 million ounces consolidated), capex reduced roughly 30% to $1.3-1.4 billion, and a new dividend policy that lowered annual payout levels. Credit pressure is building: S&P cut the rating to BBB in November 2013 and Moody's placed Newmont on review for possible downgrade in January 2014. Key operational risks for investors include the Indonesian government's January 2014 copper concentrate export regulations, which conflict with the Batu Hijau Contract of Work and could impair exports and output; the pending 7% divestiture that would cut Newmont's direct stake in PTNNT; political and community opposition at Conga in Peru; and the Mexican explosives permit suspension at La Herradura. Investors should weigh the strength of the cash-generating asset base against the impairments, rising leverage and ratings pressure.
Feb 21, 2014
2012
Newmont Annual Report, Year Ended Dec 31, 2012
Newmont Mining (NYSE: NEM) closed 2012 as a gold-focused producer with 5.6 million consolidated ounces (5.0 million attributable) produced and sales of $9.87 billion, down 5% from $10.36 billion in 2011. Net income attributable to Newmont stockholders was $1.81 billion, or $3.65 per basic share, versus $366 million in 2011, which was depressed by a $2.08 billion Hope Bay write-down. Management's adjusted net income was $1.85 billion ($3.73 per share), with gold operating margin at $985 per ounce, roughly flat year over year. Lower Batu Hijau copper and gold output (Phase 6 waste stripping) and higher costs weighed on results: costs applicable to sales rose to $677 per ounce from $591, and copper output fell 34% to 224 million pounds. Balance sheet leverage increased meaningfully. Debt rose to $6.3 billion from $4.3 billion after $2.5 billion of senior notes were issued in March 2012, and net debt reached $4.7 billion versus $2.6 billion. Capital expenditures were $3.2 billion, and operating cash flow fell to $2.4 billion from $3.6 billion. Dividends were raised to $1.40 per share for the year, and the board declared a $0.425 quarterly dividend in February 2013 under a gold-price-linked policy. Looking ahead, 2013 guidance calls for attributable gold production of 4.8 to 5.1 million ounces and all-in sustaining costs of $1,100 to $1,200 per ounce, with capex falling about 20% to $2.4 to $2.6 billion. Key growth projects include Akyem in Ghana (first production late 2013), Merian in Suriname, and Conga in Peru, which remains politically contested. Material risks include Indonesian export and divestiture disputes affecting Batu Hijau, Peruvian social unrest, and the lack of gold price hedging by design.
Feb 22, 2013
2011
Newmont Annual Report, Year Ended Dec 31, 2011
Newmont Mining Corporation (NEM) reported strong financial and operational performance for the fiscal year ending December 30, 2011. Sales reached a record $10.36 billion, driven by a significant increase in the average realized gold price to $1,562 per ounce, a 28% rise from the previous year. Gold production, while slightly down on a consolidated basis, remained robust at 5.9 million ounces. The company also advanced its project pipeline, with key developments including the Akyem project in Ghana, Conga in Peru, and the Tanami Shaft in Australia, aiming to increase attributable gold production to approximately 7 million ounces by 1603. Despite the positive performance, the company faces certain risks, including the volatility of gold and copper prices, potential cost increases, and operational challenges in various jurisdictions, such as social unrest impacting the Conga project in Peru and political risks in Indonesia related to the Batu Hijau operation. Newmont's strategy of not hedging gold and copper sales exposes it directly to price fluctuations but provides shareholders with leverage to these commodity movements. The company also introduced an enhanced gold price-linked dividend policy, demonstrating a commitment to returning value to shareholders.
Feb 24, 2012
2010
Newmont Annual Report, Year Ended Dec 31, 2010
Newmont Mining (NYSE: NEM) closed 2010 with record results driven by a sharp rise in gold and copper prices. Sales rose 24% to $9.54 billion, and net income attributable to Newmont stockholders reached $2.28 billion, or $4.63 per basic share, versus $2.66 in 2009. The average realized gold price climbed 25% to $1,222 per ounce, while consolidated Costs applicable to sales rose 18% to $485 per ounce, leaving a gold operating margin of $737 per ounce. Operating cash flow from continuing operations hit a record $3.18 billion. Adjusted net income was $1.89 billion, or $3.85 per share, after excluding a $391 million tax benefit from internal restructuring and other items. The balance sheet strengthened, with cash of $4.06 billion against debt of $4.44 billion, and Newmont stockholders' equity rose to $13.3 billion. Proven and probable gold reserves grew 1.7 million ounces to 93.5 million ounces, and copper reserves reached 9.42 billion pounds. Investors should note the guidance for 2011, which calls for lower attributable gold output of 5.1 to 5.3 million ounces, higher unit costs of $560 to $590 per ounce, and capital spending of $2.7 to $3.0 billion. Newmont does not hedge its gold or copper sales, so earnings are highly leveraged to metal prices. Key risks include the Batu Hijau divestiture under Indonesia's Contract of Work, which could eventually cause Newmont to lose control of the operation, as well as ongoing litigation in Indonesia, Peru and the United States. The company also agreed on February 3, 2011 to acquire Fronteer Gold for about C$2.3 billion, expected to close in the second quarter of 2011.
Feb 24, 2011
2009
Newmont Annual Report, Year Ended Dec 31, 2009
Newmont Mining Corporation (NYSE: NEM) closed 2009 as a stronger, more heavily capitalized company. Revenues rose 26% to $7.7 billion and net income attributable to Newmont stockholders reached $1.3 billion ($2.66 per diluted share), supported by a gold realized price of $977 per ounce and consolidated gold sales of 6.5 million ounces at Costs Applicable to Sales (CAS) of $417 per ounce. Operating cash flow from continuing operations was a record $2.9 billion, and cash ended the year at $3.2 billion. Management did not hedge its gold or copper sales, so the company retains full exposure to metal prices, which is a central investment consideration. The balance sheet changed meaningfully. Newmont raised roughly $4.3 billion of debt, including $2.0 billion of senior notes in September 2009 and $518 million of 3% convertible notes in February 2009, plus $1.2 billion of net equity proceeds from a 34.5 million share offering. Total debt rose to $4.8 billion from $3.2 billion, and total assets grew to $22.3 billion. The funds financed the $1.0 billion acquisition of AngloGold Ashanti's remaining 33.33% of Boddington, which began commercial production in November 2009 and is expected to be Australia's largest gold mine. Consolidated 2010 guidance calls for 6.3 to 6.8 million ounces of gold and capital expenditures of $1.4 to $1.6 billion. Key risks flagged in the filing include the Batu Hijau (Indonesia) Contract of Work divestiture obligations, which could reduce Newmont's ownership and control, a January 2010 fatal pit wall failure and a September 2009 geotechnical failure at Batu Hijau, an expected 150,000-ounce deferral at Nevada's Gold Quarry following a late-2009 geotechnical event, Peru political and social risk at Yanacocha ahead of 2011 national elections, and Australian dollar exposure (roughly 30% appreciation in 2009). Costs are expected to rise in 2010 due to energy and labor inflation and lower Nevada and Yanacocha output.
Feb 25, 2010
2008-A
Newmont Annual Report (Amendment), Year Ended Dec 31, 2008
Newmont Mining's FY2008 financials, as presented in this 10-K/A (Amendment No. 1, signed June 8, 2009), show a company that returned to solid profitability after a loss-heavy 2007. Revenue rose 12% to $6.20 billion, driven by gold sales of $5.45 billion, and net income swung to $853 million ($1.87 diluted EPS) from a $1.89 billion loss in 2007, which had included a $1.12 billion goodwill write-down and a $531 million loss on settling price-capped forward sales. Operating cash flow was $1.29 billion, but capital spending of $1.88 billion, largely on the Boddington and Akyem projects, left the company reliant on external financing. The balance sheet grew more leveraged. Total debt including current portion reached roughly $3.54 billion, up from about $2.94 billion, and cash fell to $435 million from $1.23 billion. Stockholders' equity declined to $7.10 billion from $7.55 billion because of a $1.21 billion hit to other comprehensive income from falling marketable securities values, foreign currency translation and pension losses. Minority interests of $1.37 billion, mainly Yanacocha and Batu Hijau, remain a significant claim on consolidated earnings, absorbing $329 million of income in 2008. Investors should weigh the strong 2008 earnings and the $1.7 billion of pro-forma liquidity that management expected from the February 2009 equity and convertible note offerings and the pending Boddington buyout against the rising debt load, the Batu Hijau divestiture arbitration with Indonesia, the Midnite CERCLA liability, and sensitivity to gold price moves. Note that this summary reflects only the financial statements and notes supplied; the MD&A and risk factors were not included.
Jun 8, 2009
2008
Newmont Annual Report, Year Ended Dec 31, 2008
Newmont Mining's 2008 Form 10-K (filed February 19, 2009) shows a company in transition: record-level gold price realizations offset rising costs, a weaker copper segment, and a heavy capital program. Revenues rose 12% to $6,199 million and net income swung to $853 million from a $1,886 million loss in 2007, which had been driven by goodwill write-downs. Income from continuing operations was $829 million. Gold sales were 6.3 million ounces at an average net realized price of $874 per ounce, while costs applicable to sales rose to $440 per ounce from $389, reflecting higher diesel, labor, and royalty costs. Balance sheet and liquidity deserve close attention. Total debt rose to $3,542 million from $2,938 million, and cash fell to $435 million from $1,231 million as capital expenditures reached $1,875 million, largely for the Boddington project. Shareholder equity declined to $7,102 million after a $1,210 million hit to other comprehensive income from falling equity markets and currency moves. Management guided to 2009 gold sales of 6.35 to 6.85 million ounces and capital spending of $1,400 to $1,600 million, and noted that investing and financing outflows are expected to exceed operating cash flow. Subsequent events are material. In February 2009 Newmont raised about $1.7 billion through convertible notes and common equity, and it agreed to buy AngloGold Ashanti's 33.33% stake in Boddington for $750 million cash plus contingent payments. Key risks include the Indonesian Batu Hijau contract-of-work arbitration, which could curtail mining rights, a pending forest-use permit, the Midnite CERCLA litigation, and pension underfunding after 2008 market declines.
Feb 19, 2009
2007
Newmont Annual Report, Year Ended Dec 31, 2007
Newmont Mining's FY2007 10-K shows a company in transition: a sharply higher gold price drove revenue to $5.5 billion (up 13%), but a large non-cash charge pushed the company to a net loss of $1.9 billion, or $4.17 per share. The loss was driven by a $1.665 billion write-off of Merchant Banking goodwill, a $1.122 billion write-down of Exploration Segment goodwill, and a $531 million loss from settling price-capped forward sales contracts. Excluding these items, operations were considerably healthier. Gold sales fell to 6.2 million ounces from 7.2 million as lower grades at Nevada and Yanacocha offset the first full year at Ahafo, while average realized gold prices rose to $697 per ounce. Costs applicable to sales rose to $406 per ounce from $303, reflecting cost inflation and Australian dollar strength. Management guides to 2008 gold sales of 5.9 to 6.4 million ounces and costs of $425 to $450 per ounce. The balance sheet and funding picture is more demanding. Long-term debt rose to $2.9 billion from $1.9 billion after the $1.15 billion convertible notes issuance and the approximately $991 million Miramar acquisition, which gives Newmont control of the Hope Bay project in Nunavut. Stockholders' equity fell to $7.5 billion from $9.3 billion. Management says operating cash flow is insufficient to fund planned 2008 capital expenditures of $1.8 to $2.0 billion, which points to possible new capital sources, asset sales or deferred projects. The December 2007 sale of the royalty portfolio to new Franco-Nevada for $1.187 billion partly offset these needs. Key risks for investors include Indonesia's Batu Hijau. On February 11, 2008, the government's Department of Energy and Mineral Resources alleged breach of the Contract of Work over divestiture requirements and threatened termination. Newmont disputes this and is considering international arbitration. The filing also flags an uncertain forest use permit that is needed by May 2008, plus ongoing political protests at Yanacocha, Peru. The Batu Hijau economic interest was reduced to 45% in May 2007 when the minority partner repaid its carried-interest loan.
Feb 21, 2008
2006
Newmont Annual Report, Year Ended Dec 31, 2006
Newmont Mining's 2006 10-K shows a year of strong pricing offset by operational setbacks. Revenue rose 15% to $4,987 million and net income reached $791 million ($1.75 diluted EPS), versus $322 million in 2005. The gain was driven by an average realized gold price of $599/oz (up from $441) and a $266 million pre-tax gain on the Alberta Oil Sands sale. Gold sales fell 13% to 7.36 million ounces, mainly from lower grades and throughput at Yanacocha, Batu Hijau and Australia, and copper sales fell 24% to 435 million pounds. Costs applicable to sales per ounce rose to $304 from $237, and DD&A was broadly flat at $636 million. Management's outlook for 2007 is weaker on volumes and costs. Gold sales are guided to 6.1 to 6.6 million ounces, and costs applicable to sales per ounce are expected to rise about 25%. Capital expenditures are planned at $1.8 to $2.0 billion, largely for Boddington, the Nevada power plant and the Yanacocha mill, and the company expects new capital sources to be needed. Proven and probable gold reserves were 93.9 million equity ounces at year-end, up slightly, but exploration replaced only about 5.9 million ounces against 8.9 million depleted, and the company recorded a $101 million loss on the expropriation of its Zarafshan joint venture in Uzbekistan. Balance sheet strength is solid: cash was $1.17 billion, total debt $1.91 billion, and stockholders' equity $9.34 billion. Key risks flagged include Indonesian legal exposure from the Buyat Bay case, where a verdict is expected in Q2 2007, political risk in Peru and Indonesia, a Batu Hijau divestiture obligation that could reduce Newmont's stake to 49% by 2010, and goodwill of $3.0 billion (19% of assets) that depends on reserve replacement assumptions.
Feb 26, 2007
2005-A
Newmont Annual Report (Amendment), Year Ended Dec 31, 2005
Newmont's 10-K/A (Amendment No. 1 to the FY2005 Form 10-K, filed October 26, 2006) is a narrow amendment that adds disclosure on Exploration Segment goodwill ($1,126 million, about 99% of the segment's total assets) and its valuation model, responding to the goodwill impairment-testing disclosures. It does not restate other items of the original March 2, 2006 filing. The core financials remain: 2005 revenues of $4,406 million, net income of $322 million ($0.72 per diluted share), and income from continuing operations of $374 million, down from $453 million in 2004. Gold sales were 8.55 million ounces at an average realized price of $441/oz, and costs applicable to sales rose to $236/oz from $216/oz. The amendment's most important point for investors is the sensitivity of the goodwill case. The Exploration Segment valuation depends on perpetual reserve additions and more than 100% of its fair value sits in terminal value, with negative cash flows for roughly the first 10 years. Cutting the annual reserve addition and terminal growth rate from 5% to 4% would reduce its fair value by about $1.9 billion. In 2005 the company replaced 8.6 million ounces of depletion with 9.4 million ounces of additions, but the valuation assumed 8.6 million attributable ounces, so actual additions fell about 1.8 million ounces short of the prior-year assumption. Newmont also took a $41 million goodwill impairment on its Nevada unit in 2005. Balance-sheet and cash-flow strength is a positive. Cash and equivalents reached $1,082 million, marketable securities and investments were substantial (the Canadian Oil Sands Trust stake alone was $650 million), and total debt rose to $1,929 million. Operating cash flow was $1,253 million from continuing operations. Key forward risks include Indonesian legal and ownership-dilution exposure at Batu Hijau, the Minahasa/Buyat Bay matter, Nevada and Yanacocha operating costs, and a required EITF 04-6 cumulative-effect charge of roughly $75 to $85 million to beginning 2006 retained earnings.
Oct 26, 2006
2005
Newmont Annual Report, Year Ended Dec 31, 2005
Newmont Mining (NYSE: NEM) closed 2005 as one of the world's largest gold producers, the only gold company in the S&P 500, with 8.55 million consolidated gold ounces sold, a 52.875% economic interest in Batu Hijau (Indonesia), and a Denver headquarters. Net income fell to $322 million ($0.72 per diluted share) from $443 million in 2004, while revenues were roughly flat at $4.41 billion. Earnings were pressured by a $41 million Nevada goodwill impairment, $111 million in other expenses (including Minahasa/Buyat Bay costs of $56 million and reclamation charges), a $52 million loss from discontinued operations (Golden Grove and Holloway), and a $30 million valuation allowance on foreign tax credits. Higher costs (gold costs applicable to sales rose to $236 per ounce from $216) and a 3% decline in gold sales offset most of the benefit of a higher average realized gold price of $441 per ounce. Balance-sheet and cash-flow picture: operating cash flow from continuing operations was $1.25 billion, but capital expenditures of $1.23 billion (led by Nevada and Ahafo in Ghana) and $365 million of dividends to common and minority holders absorbed most of it. Total debt rose to $1.93 billion from $1.60 billion after issuing $600 million of 5 7/8% notes due 2035, while cash and equivalents reached $1.08 billion. Stockholders' equity grew to $8.38 billion, helped by a $282 million unrealized gain on equity securities, principally Canadian Oil Sands Trust. Management guides to about 8.0 million ounces of 2006 gold sales at $280-285 per ounce in costs and capital spending of $1.35-1.5 billion, with the Ahafo and Akyem projects in Ghana, the Phoenix and Leeville projects in Nevada, and the Boddington expansion as the main growth drivers. Key risks for investors include the Indonesian Buyat Bay pollution prosecution (trial expected to conclude mid-2006), a civil settlement signed February 2006, a required partial sale of Batu Hijau to Indonesian parties that could reduce Newmont's stake to 49% by 2010, SEC comment letters on goodwill valuation of the Exploration and Merchant Banking segments, a Peru presidential election in 2006 affecting Yanacocha, and shareholder class and derivative actions filed in 2005. Management's 2006 accounting change under EITF 04-6 is expected to reduce beginning retained earnings by $75-85 million.
Mar 2, 2006
2004
Newmont Annual Report, Year Ended Dec 31, 2004
Newmont Mining Corporation's 2004 Form 10-K (filed March 15, 2005) shows a company at a strong earnings and cash-generation point, though with rising costs and a much larger balance sheet. Revenue rose to $4.52 billion from $3.16 billion, driven by higher realized gold prices ($412/oz vs. $366 in 2003) and the consolidation of Batu Hijau from January 1, 2004. Net income applicable to common shares was $443.3 million (about $0.99 diluted EPS), down from $475.7 million in 2003, which was flattered by large 2003 non-recurring gains such as the NYOL liability extinguishment. Operating cash flow more than doubled to $1.56 billion. The main concerns for investors are cost inflation and balance-sheet growth. Total cash costs rose to $231 per equity ounce from $203, reflecting higher fuel, power and consumables costs, a stronger Australian dollar, and lower Nevada grades. Total debt rose to $1.6 billion, and capital expenditures increased to $718 million. Management guided to a further step-up in 2005 capex of $1.0-1.3 billion, mainly for Ahafo, Leeville, Phoenix and the Nevada power plant. Pre-tax results also absorbed a $51.8 million goodwill write-down at Pajingo, a $38.5 million Kinross impairment, and a $47.1 million cumulative-effect charge tied to consolidating Batu Hijau. At the strategic level, Newmont reaffirmed its position as the world's largest gold producer, with 92.4 million equity ounces of proven and probable reserves. It also flagged several risks: Indonesian legal proceedings over the Buyat Bay allegations, Peruvian community opposition that forced the Cerro Quilish reserve reclassification, Batu Hijau's Indonesian divestiture obligations from 2005 to 2010, and the large goodwill balance (about $3.0 billion, 24% of total assets) that depends on long-term valuation assumptions.
Mar 15, 2005
2003-A
Newmont Annual Report (Amendment), Year Ended Dec 31, 2003
Newmont Mining Corporation's (NEM) 2003 annual report amendment highlights significant financial and operational improvements driven by higher gold prices and strategic acquisitions. The company reported a substantial increase in net income to $475.7 million ($1.16 per share) from $154.3 million ($0.42 per share) in 2002, attributed to a 21% revenue growth to $3.2 billion. This performance was bolstered by a realized gold price increase to $366 per ounce and the full-year impact of the 2002 acquisitions of Normandy and Franco-Nevada. The company also strengthened its balance sheet through a $1 billion equity offering and by significantly reducing its outstanding debt and eliminating its Australian gold hedge book. Despite increased production costs due to fuel prices and foreign currency fluctuations, Newmont successfully offset these with improved margins. The company's operational outlook for 2004 includes increased capital expenditures for development projects and continued investment in exploration, reflecting a positive long-term view on gold prices.
Jul 28, 2004
2003
Newmont Annual Report, Year Ended Dec 31, 2003
Newmont Mining Corporation, the world's largest gold producer, closed 2003 with a sharp earnings recovery driven by higher gold prices. Net income applicable to common shares rose to $475.7 million ($1.16 per basic share) from $154.3 million in 2002, on revenues of $3.21 billion (up 21%). Average realized gold price climbed to $366 per ounce from $313, while weighted-average total cash costs per equity ounce rose to $203 from $189. Equity gold sales were 7.38 million ounces, slightly below 2002 because of divestitures of non-core investments. The balance sheet was substantially strengthened during the year. Newmont raised roughly $1.0 billion in a November 2003 equity offering, reduced long-term debt from $1.82 billion to $1.08 billion, and ended the year with $1.31 billion in cash. Stockholders' equity rose to $7.38 billion. The company also substantially eliminated the Normandy-acquired gold hedge books, leaving it nearly unhedged, consistent with its stated policy. Looking forward, management expects gold production of 7.0 to 7.5 million equity ounces per year through 2006, with new projects at Leeville and Phoenix in Nevada and Ahafo in Ghana. Investors should weigh several items: the planned 2004 consolidation of Batu Hijau under FIN 46R, goodwill of about $3.0 billion dependent on assumptions about future gold prices and investment returns, the high sensitivity of earnings to gold prices, and ongoing legal and environmental matters, including challenges to the Ovacik mine in Turkey.
Mar 15, 2004
2002-A
Newmont Annual Report (Amendment), Year Ended Dec 31, 2002
Newmont Mining Corporation's (NEM) amended 10-K filing for the fiscal year ended December 31, 2002, reveals a significant transformation driven by strategic acquisitions. The company significantly expanded its operational footprint and reserve base through the acquisitions of Franco-Nevada Mining Corporation Limited and Normandy Mining Limited. This expansion led to a substantial increase in revenues and a notable improvement in net income, moving from a net loss in 2001 to a profit in 2002. However, the significant goodwill recorded from these acquisitions ($3 billion) poses a potential risk if future performance does not support its carrying value. The company also faces ongoing market risks related to gold and copper price fluctuations, currency movements, and operational challenges inherent in the mining industry, particularly in its international operations. Management's focus in 2003 is on achieving synergies from the acquisitions and optimizing its asset base, while continuing to manage its debt levels.
Oct 24, 2003
2002
Newmont Annual Report, Year Ended Dec 31, 2002
Newmont Mining's 2002 10-K reflects a transformational year driven by the February 2002 acquisitions of Normandy Mining (Australia's largest gold company) and Franco-Nevada (a leading precious-metals royalty company), which together cost about $4.3 billion and added roughly $3.0 billion of goodwill. Gold sales rose 54% to $2.57 billion, total revenues reached $2.75 billion (versus $1.67 billion in 2001), and net income applicable to common shares swung to $154.3 million ($0.42 basic per share) from a $54.1 million loss. Equity gold sales increased to 7.63 million ounces, average realized price rose to $313 per ounce, and total cash costs were $189 per ounce. Operating cash flow nearly doubled to $670.3 million. Total assets more than doubled to $10.15 billion and debt rose to about $1.8 billion, though net debt fell as a share of capitalization. The filing also highlights significant risk and portfolio activity. Newmont maintains a stated 'no-hedging' philosophy, yet inherited Normandy hedge books with a mark-to-market liability of about $433 million at year-end 2002, most of it at the NYOL (Yandal) subsidiary, whose hedge counterparties can terminate contracts early. Management is pruning non-core assets: it exchanged its Echo Bay stake for a 13.8% interest in the restructured Kinross and sold its 49.9% TVX Newmont Americas interest for $180 million in January 2003, and it is buying out minority holders in Newmont NFM and Otter Gold Mines. Proven and probable gold reserves stood at 86.9 million equity ounces, falling to about 83.2 million after the January 2003 divestitures, and the company guided to over $75 million in annual synergies from 2003. For investors, the key trade-offs are a sharply larger, more diversified asset base and cash flow that benefits from higher gold prices, against higher leverage, legacy derivative exposure, Australian dollar cost pressure, and integration and reserve-replacement risk. The company also notes a restatement of several quarterly 2002 results and labor-contract risk at Carlin, Nevada.
Mar 27, 2003
2001-A
Newmont Annual Report (Amendment), Year Ended Dec 31, 2001
Newmont Mining Corporation (NEM) filed an Amendment No. 1 to its Form 10-K for the fiscal year ended December 31, 2001, on March 19, 2003. This amendment primarily addresses restatements to the company's financial statements for the years ended December 31, 1999, 2000, and 2001, due to several accounting adjustments related to forward sales contracts, depreciation and stripping calculations, and the capitalization of depreciation, depletion, and amortization (DD&A) into inventory. For the fiscal year 2001, Newmont reported a net loss applicable to common shares of $54.1 million, an improvement from the $97.2 million net loss in 2000. However, the company's financial statements were impacted by significant restatements that increased the net loss for 2001 by $23.4 million. Key operational highlights include gold sales of 5.47 million equity ounces and total cash costs of $184 per ounce. The company also completed substantial acquisitions of Normandy Mining Limited and Franco-Nevada Mining Corporation Limited in early 2002, significantly expanding its global operations and reserve base.
Mar 20, 2003
2001
Newmont Annual Report, Year Ended Dec 31, 2001
Newmont Mining Corporation's 2001 10-K filing reveals a challenging year marked by a net loss, primarily due to restructuring expenses and asset write-downs. Despite a decrease in gold sales volume and an average realized gold price of $271 per ounce, the company saw an improvement compared to the previous year's net loss. A significant strategic development during the year was the announcement of proposed acquisitions of Normandy Mining Limited and Franco-Nevada Mining Corporation Limited, which were later completed in early 2002. These transformative acquisitions aimed to significantly expand Newmont's global footprint, reserve base, and production capabilities, positioning the company for future growth despite the prevailing low gold price environment. Operationally, Newmont continued to manage its diverse global portfolio, with Nevada operations being a significant contributor. However, production in Nevada declined due to the depletion of lower-cost oxide ores, leading to increased cash costs for the region. The company also provided detailed operational statistics for its various mining locations across North America, South America, Australia, and Asia, highlighting production levels, cash costs, and reserve estimates. The report also touches upon environmental liabilities and ongoing legal proceedings, which are standard for a company of this nature.
Mar 27, 2002