What is the purpose of this 8-K filing?

This 8-K filing provides unaudited pro forma combined condensed financial information to help investors analyze the financial impact of Newmont's acquisitions of Franco-Nevada Mining Corporation Limited and Normandy Mining Limited. The information is presented as if the transactions occurred on January 1, 2002.

What were the key financial results presented in the pro forma statement?

For the twelve months ended December 31, 2002, the pro forma combined entity reported Sales and other income of $2,903.7 million and an operating income of $315.4 million. However, a significant loss on derivative instruments ($289.1 million) greatly reduced the pre-tax income to $26.3 million, resulting in a net income applicable to common shares of $15.1 million ($0.04 per diluted share).

Why is there a large loss related to derivative instruments?

The filing highlights a loss of $249.3 million associated with Normandy's derivative instruments during the period from January 1, 2002, to February 15, 2002. This occurred before Newmont completed the required documentation to qualify these derivatives for hedge accounting under SFAS 133. After February 15, 2002, subsequent changes in fair value were generally recorded in Other Comprehensive Income.

Should investors use this pro forma information to predict future performance?

No, investors should not rely on this pro forma information as indicative of historical results that would have been achieved or future financial results that the combined company will achieve. The information is presented for illustrative purposes only and is summarized, meaning investors should also consult Newmont's historical financial statements and other filings.

NEM/NEMCL 8-K SEC Disclosure

Summary

This 8-K filing from Newmont Mining Corporation provides unaudited pro forma combined condensed financial information for the twelve months ended December 31, 2002. This information is presented to illustrate the financial effects of Newmont's acquisitions of Franco-Nevada Mining Corporation Limited and Normandy Mining Limited. The pro forma statements assume both acquisitions were completed on January 1, 2002, to facilitate analysis of the combined entity's potential financial performance. Investors should note that this information is illustrative and may not be indicative of actual historical or future results. The pro forma combined statement of operations indicates that the hypothetical combined entity would have generated sales and other income of $2,903.7 million for the twelve months ended December 31, 2002. Operating income was $315.4 million, but a significant loss of $289.1 million on derivative instruments heavily impacted the pre-tax income, resulting in a pre-tax income of only $26.3 million. After taxes and minority interests, the net income applicable to common shares before cumulative effect of accounting changes was $15.1 million, translating to $0.04 per diluted share. A notable factor contributing to the combined financial picture is a substantial loss of $249.3 million related to Normandy's derivative instruments during the initial acquisition period before hedge accounting was fully applied.

Key Highlights

1The filing presents unaudited pro forma combined condensed financial information for Newmont, Franco-Nevada, and Normandy, assuming their acquisitions were effective January 1, 2002.
2The pro forma combined entity reported Sales and other income of $2,903.7 million for the twelve months ended December 31, 2002.
3Operating income for the pro forma combined entity was $315.4 million.
4A significant loss of $289.1 million on derivative instruments heavily impacted the pre-tax income.
5Net income applicable to common shares before cumulative accounting changes was $15.1 million, or $0.04 per diluted share.
6A substantial loss of $249.3 million related to Normandy's derivative instruments was recorded in the early acquisition period before SFAS 133 hedge accounting was applied.
7The pro forma statements are for illustrative purposes and should not be relied upon as indicative of historical or future results.

NEWMONT Corp /DE/ 8-K Report (Apr 22, 2003)

Summary

Key Highlights

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