Early Access

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 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.

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