01—Abstract
Summary
Summary of the 10-K/A filed March 20, 2003. Cited figures are marked; the original filing is the authoritative source.
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 milliona, 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 $184b 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.
02—Key points
Key Highlights
- Restatement of 2001, 2000, and 1999 financial statements due to accounting adjustments for forward contracts, depreciation, stripping, and inventory capitalization.
- Reported a net loss of $54.1 million ($0.28 per share) for 2001, an improvement from the $97.2 million loss in 2000, though restatements increased the 2001 net loss by $23.4 million.
- Gold sales for 2001 totaled 5.47 million equity ounces, with total cash costs at $184 per ounce.
- Completed significant acquisitions of Normandy Mining Limited and Franco-Nevada Mining Corporation Limited in early 2002, expanding global footprint and reserves.
- Focus on cost efficiencies and disciplined capital spending through the "Gold Medal Performance" program.
- The company's 2001 reserve base stood at 59.6 million equity ounces of gold, a 10% decrease from 2000, with copper reserves at 6 billion pounds.
- Increased long-term debt from $1.4 billion to $2.3 billion following acquisitions in early 2002.
03—Questions
Frequently Asked Questions
What were the primary reasons for the restatement of financial statements in this amendment?
The restatements were primarily due to adjustments related to the accounting for a prepaid forward gold sales contract and a forward gold purchase contract treated as a single borrowing, corrections in depreciation and deferred stripping calculations for certain mining assets, and the inclusion of depreciation, depletion, and amortization (DD&A) as a capitalized cost in inventory.
What is Newmont's financial performance for the year ended December 31, 2001?
For the year ended December 31, 2001, Newmont reported a net loss applicable to common shares of $54.1 million ($0.28 per share), which was an improvement compared to the $97.2 million net loss ($0.51 per share) reported in 2000. However, the restatements included in this filing increased the net loss for 2001 by $23.4 million ($0.12 per share).
What significant corporate actions occurred around the filing date?
In early 2002, Newmont completed the acquisitions of Normandy Mining Limited and Franco-Nevada Mining Corporation Limited. These transactions significantly expanded Newmont's global operations, asset base, and reserve position.
How did the company manage its debt levels?
Newmont's long-term debt increased significantly in early 2002, rising from $1.4 billion at December 31, 2001, to approximately $2.3 billion following the Normandy and Franco-Nevada acquisitions. The company expects to fund its future debt maturities from operating cash flow and refinancing.
04—Continue