10-KPeriod: FY2009

NEWMONT Corp /DE/ Annual Report, Year Ended Dec 31, 2009

Filed February 25, 2010For Securities:NEMNEMCL

Summary

In 2009, Newmont Mining Corporation demonstrated robust operational and financial performance, driven by strong gold and copper prices. The company reported record net income attributable to stockholders and significant cash flow from operations. A key strategic achievement was the successful acquisition of the remaining stake in the Boddington project, which is poised to become Australia's largest gold mine and a cornerstone asset for Newmont. The company is actively advancing its project pipeline with development expected for Akyem in Ghana, Conga in Peru, and Hope Bay in Canada. Newmont's commitment to business excellence and continuous improvement is evident in its operational efficiency, unhedged revenue streams, and focus on maximizing asset value while controlling costs. However, investors should be aware of the inherent risks in the mining industry, including the potential for significant adverse effects from declines in gold or copper prices, challenges in replacing depleted reserves, uncertainties in reserve estimates, and increasing operating costs. Furthermore, geopolitical and operational risks, particularly at the Batu Hijau operation in Indonesia and operations in Peru, require careful monitoring.

Financial Highlights

53 data points
Beta

Net Income

$1.30B

EPS (Diluted)

$2.66

Total Assets

$22.30B

Cash & Equivalents

$3.21B

Free Cash Flow

$2.95B

Financial Statements
Beta
R&D Expenses$135.00M
Operating Expenses$4.72B
Operating Income$1.31B
Interest Expense$120.00M
Net Income$1.30B
EPS (Basic)$2.66
EPS (Diluted)$2.66
Shares Outstanding (Basic)487.00M
Shares Outstanding (Diluted)487.00M

Key Highlights

  • 1Achieved record net income attributable to Newmont stockholders, reporting $2.66 per share.
  • 2Generated record cash flow from continuing operations of $2.9 billion, a 109% increase year-over-year.
  • 3Successfully acquired the remaining 33.33% interest in the Boddington project, which commenced commercial production.
  • 4Increased proven and probable gold reserves by 6.8 million equity ounces to a total of 91.8 million equity ounces.
  • 5Expanded proven and probable copper reserves by 1,340 million equity pounds to 9,120 million equity pounds.
  • 6Revenues increased by 26% to $7.7 billion, driven by higher gold and copper prices and increased sales volumes.
  • 7Maintained an unhedged revenue stream, providing direct leverage to commodity price fluctuations.

Frequently Asked Questions

In 2009, Newmont reported record net income attributable to stockholders of $1.3 billion, or $2.66 per share, and record cash flow from continuing operations of $2.9 billion. Revenues increased by 26% to $7.7 billion, driven by higher gold and copper prices and increased sales volumes. The company also saw a significant increase in its proven and probable gold and copper reserves.

The most significant strategic development was the acquisition of the remaining 33.33% interest in the Boddington project in Australia, which achieved commercial production in November 2009. Newmont is also advancing several key development projects, including Akyem in Ghana and Conga in Peru, with construction decisions anticipated in 2010.

Newmont faces several key risks, including substantial declines in gold or copper prices, the inability to replace depleted reserves through exploration or acquisition, uncertainty in reserve estimates, and increasing operating costs. Additionally, geopolitical and operational risks in regions like Indonesia (Batu Hijau) and Peru (Yanacocha) are highlighted as significant concerns.

In 2009, Newmont significantly improved its liquidity position, with cash and cash equivalents increasing to $3.2 billion. This was supported by strong operating cash flows and the issuance of $1.6 billion in net new debt, including senior notes and convertible senior notes. The company also completed a public offering of common stock, raising $1.2 billion. Capital expenditures were managed at $1.8 billion, and dividends paid to common stockholders remained stable at $0.40 per share.