10-QPeriod: Q3 FY2009

NEWMONT Corp /DE/ Quarterly Report for Q3 Ended Sep 30, 2009

Filed October 29, 2009For Securities:NEMNEMCL

Summary

Newmont Mining Corporation reported a significant increase in net income for the third quarter of 2009 compared to the same period in 2008, driven by higher gold and copper sales volumes and improved pricing. For the nine months ended September 30, 2009, while net income was lower year-over-year, this was largely due to the prior year's benefit from tax adjustments and the sale of investments. The company's balance sheet shows a substantial increase in cash and cash equivalents and a robust increase in total assets, indicating strong liquidity and asset growth. Key operational highlights include increased gold and copper sales volumes and improved realized prices, particularly for gold. The company also saw a decrease in 'Costs applicable to sales' per unit for both gold and copper, reflecting operational efficiencies and lower diesel prices. Significant capital expenditures were made in the nine-month period, largely focused on the Boddington project acquisition and development, along with ongoing investments in other key mining operations.

Financial Highlights

52 data points
Beta

Net Income

$388.00M

EPS (Diluted)

$0.79

Total Assets

$21.15B

Cash & Equivalents

$3.02B

Free Cash Flow

$1.05B

Financial Statements
Beta
Gross Profit$1.08B
R&D Expenses$27.00M
Operating Expenses$1.16B
Operating Income$388.00M
Interest Expense$10.00M
Net Income$388.00M
EPS (Basic)$0.79
EPS (Diluted)$0.79
Shares Outstanding (Basic)490.00M
Shares Outstanding (Diluted)491.00M

Key Highlights

  • 1Net income attributable to Newmont stockholders for Q3 2009 was $388 million, a significant increase from $191 million in Q3 2008.
  • 2Total revenues for Q3 2009 reached $2,049 million, up from $1,371 million in Q3 2008, driven by higher gold and copper sales volumes and prices.
  • 3The company reported strong growth in cash and cash equivalents, increasing from $435 million at December 31, 2008, to $3,022 million at September 30, 2009.
  • 4'Costs applicable to sales' per consolidated gold ounce sold decreased by 13% in Q3 2009 compared to Q3 2008.
  • 5Significant capital expenditures were made, with $1,314 million in additions to property, plant, and mine development for the nine months ended September 30, 2009, primarily for the Boddington project.
  • 6Newmont completed the acquisition of the remaining 33.33% interest in the Boddington project during the nine months ended September 30, 2009.
  • 7Diluted earnings per share for Q3 2009 were $0.79, up from $0.42 in Q3 2008.

Frequently Asked Questions

Newmont reported a significant improvement in its financial performance for the third quarter of 2009. Net income attributable to Newmont stockholders more than doubled to $388 million, compared to $191 million in the same quarter of the previous year. This was driven by a substantial increase in total revenues to $2,049 million from $1,371 million, largely due to higher gold and copper sales volumes and prices, along with lower production costs.

The increase in revenue was primarily driven by higher sales volumes for both gold and copper. Gold sales increased by 233,000 ounces, and copper sales rose significantly to 141 million pounds from 44 million pounds. Additionally, average realized prices improved, with gold prices increasing by $99 per ounce and copper prices seeing a notable rise in the period.

Newmont's cash position strengthened considerably. Cash and cash equivalents grew from $435 million at the end of 2008 to $3,022 million by September 30, 2009. This substantial increase in liquidity was primarily fueled by strong operating cash flows and significant proceeds from debt issuances and stock offerings during the first nine months of the year.

The acquisition of the remaining 33.33% interest in the Boddington project for $750 million (plus acquisition costs) was a significant event in the first nine months of 2009. This acquisition consolidated 100% ownership. The company invested $961 million in the Boddington project during this period, reflecting substantial capital allocation towards its development, with commercial production expected to commence in Q4 2009. This project represents a key growth driver for the company.