10-QPeriod: Q1 FY2011

NEWMONT Corp /DE/ Quarterly Report for Q1 Ended Mar 31, 2011

Filed April 21, 2011For Securities:NEMNEMCL

Summary

Newmont Mining Corporation reported its first-quarter 2011 financial results, with net income attributable to Newmont stockholders of $514 million, or $1.03 per diluted share. This represents a slight decrease from the $546 million, or $1.11 per diluted share, reported in the first quarter of 2010. The decrease was primarily attributed to a significant tax benefit recorded in the prior year and lower sales volumes, partially offset by higher realized gold and copper prices. Despite the year-over-year dip in net income, the company highlighted strong operational performance, including record operating cash flow of $989 million and a 10% increase in sales to $2,465 million. Newmont also announced its comprehensive development plan, aiming to potentially increase attributable gold production to approximately 7 million ounces by 2017 and introduced a new gold price-linked dividend policy. The company maintained its 2011 outlook for production, costs, and capital expenditures, signaling confidence in its growth strategy and operational execution.

Financial Highlights

54 data points
Beta

Net Income

$514.00M

EPS (Diluted)

$1.03

Total Assets

$26.85B

Cash & Equivalents

$4.53B

Free Cash Flow

$989.00M

Financial Statements
Beta
Gross Profit$1.25B
R&D Expenses$68.00M
Operating Expenses$1.46B
Operating Income$514.00M
Interest Expense$65.00M
Net Income$514.00M
EPS (Basic)$1.04
EPS (Diluted)$1.03
Shares Outstanding (Basic)493.00M
Shares Outstanding (Diluted)501.00M

Key Highlights

  • 1Net income attributable to Newmont stockholders was $514 million, or $1.03 per diluted share, down from $546 million, or $1.11 per diluted share, in Q1 2010.
  • 2Sales increased by 10% year-over-year to $2,465 million, driven by higher realized gold and copper prices.
  • 3Operating cash flow reached a record $989 million in Q1 2011.
  • 4The company announced a comprehensive development plan targeting up to 7 million ounces of attributable annual gold production by 2017.
  • 5A new gold price-linked dividend policy was introduced, with the first quarterly dividend under this policy set at $0.20 per share.
  • 6Capital expenditures increased to $418 million, primarily due to investments in development projects like Nevada, Hope Bay, Conga, and Akyem.
  • 7The effective tax rate increased to 31% in Q1 2011 from 16% in Q1 2010, largely due to the absence of a tax benefit recorded in the prior year.

Frequently Asked Questions

The decrease in net income attributable to Newmont stockholders from $546 million in Q1 2010 to $514 million in Q1 2011 was primarily due to a tax benefit of $127 million recorded in the first quarter of 2010 related to the conversion of non-U.S. tax-paying entities, as well as lower sales volumes, partially offset by higher realized gold and copper prices.

Newmont maintained its 2011 outlook for gold and copper production, costs, and capital expenditures. The company also outlined a comprehensive development plan that aims to potentially increase attributable annual gold production to approximately 7 million ounces by 2017, driven by projects like Long Canyon, Hope Bay, Conga, and Akyem.

Newmont introduced a new gold price-linked dividend policy, which links the quarterly dividend payment to the company's average realized gold price for the preceding quarter. The first quarterly dividend under this new policy was declared at $0.20 per share.

Capital expenditures increased to $418 million in Q1 2011 from $285 million in Q1 2010. This increase is largely attributed to higher investments in development projects across various regions, including Nevada, Hope Bay, Conga, and Akyem, with the company expecting total 2011 capital expenditures to be between $2,700 million and $3,000 million.