Summary
Newmont Mining Corporation filed an amendment to its 2008 10-K to correct a typographical error in the independent auditor's report date. The primary financial information presented remains unchanged, detailing the company's performance for the fiscal year ended December 31, 2008. Investors will note a significant swing in net income from a substantial loss in 2007 to a strong net income of $853 million in 2008. This turnaround was driven by a rebound in revenue, particularly from gold sales, which increased year-over-year, while costs applicable to sales saw a relative decrease, despite some significant write-downs in the prior year. The company's balance sheet shows an increase in property, plant, and mine development, reflecting ongoing investment in its assets, but also a notable decrease in cash and cash equivalents and marketable securities, suggesting a draw on liquidity. The company's debt levels increased, particularly long-term debt, indicating continued investment and potential financing activities. Shareholders experienced an increase in earnings per share, returning to profitability after a difficult 2007. While the financial statements themselves are largely from the original filing, this amendment emphasizes the auditor's reconfirmation of the company's financial position and internal controls. For investors, the key takeaway is the company's return to profitability in 2008, supported by higher gold prices and sales volumes, alongside significant investments in future production capacity. However, the decrease in cash reserves and increase in debt warrant close monitoring in subsequent periods.
Financial Highlights
51 data points| R&D Expenses | $166.00M |
| Operating Expenses | $4.82B |
| Operating Income | $816.00M |
| Interest Expense | $135.00M |
| Net Income | $831.00M |
| EPS (Basic) | $1.83 |
| EPS (Diluted) | $1.83 |
| Shares Outstanding (Basic) | 454.00M |
| Shares Outstanding (Diluted) | 455.00M |
Key Highlights
- 1Newmont Mining Corporation reported a net income of $853 million for the fiscal year ended December 31, 2008, a significant improvement from a net loss of $1,886 million in 2007.
- 2Total revenues increased to $6,199 million in 2008 from $5,526 million in 2007, primarily driven by higher gold sales.
- 3Costs and expenses decreased from $5,879 million in 2007 to $4,944 million in 2008, benefiting from the absence of a large goodwill write-down in 2007 ($1,122 million) and a write-down of property, plant, and mine development in 2008 ($137 million).
- 4Cash and cash equivalents decreased significantly from $1,231 million at the end of 2007 to $435 million at the end of 2008.
- 5Long-term debt increased from $2,683 million in 2007 to $3,373 million in 2008, reflecting continued investment and financing activities.
- 6Diluted earnings per share improved to $1.87 in 2008 from a loss of $4.17 in 2007.
- 7The company reported a substantial other comprehensive loss of $(1,210) million in 2008, primarily due to unrealized losses on marketable securities and foreign currency translation adjustments.