EX-12.1 3 dex121.htm COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES Computation of Ratio of Earnings to Fixed Charges

Exhibit 12.1

Newmont Mining Corporation

 

Computation of Ratio of Earnings to Fixed Charges and Preferred Dividends

(Amounts in thousands except ratio, as restated)

 

    

For the Year Ended December 31,

  
    

2001

     

2000

     

1999

     

1998(2)

     

1997(2)

  

Earnings:

                                             

Income (loss) before income taxes and cumulative effect of changes in accounting principles

   

$

(128,425

)

   

$

(30,033

)

   

$

(9,019

)

   

$

(646,348

)

   

$

53,136

 

Adjustments:

                                             

Net interest expense (1)

   

 

98,080

 

   

 

106,120

 

   

 

83,185

 

   

 

96,618

 

   

 

90,967

 

Amortization of capitalized interest

   

 

7,362

 

   

 

8,793

 

   

 

4,886

 

   

 

4,435

 

   

 

3,221

 

Portion of rental expense representative of interest

   

 

2,747

 

   

 

2,936

 

   

 

2,914

 

   

 

4,361

 

   

 

3,849

 

Undistributed income (loss) of affiliate

   

 

27,569

 

   

 

(17,930

)

   

 

(91,788

)

   

 

(105,932

)

   

 

200

 

Preferred dividends

   

 

(11,500

)

   

 

(11,500

)

   

 

(11,500

)

   

 

(11,500

)

   

 

(11,500

)

Minority interest of majority owned subsidiaries

   

 

65,374

 

   

 

92,814

 

   

 

44,141

 

   

 

71,825

 

   

 

75,017

 

    
  
  
  
  
    

$

61,207

 

   

$

151,200

 

   

$

22,819

 

   

$

(586,541

)

   

$

214,890

 

    
  
  
  
  

Fixed Charges:

                                             

Net interest expense (1)

   

$

98,080

 

   

$

106,120

 

   

$

83,185

 

   

$

96,600

 

   

$

90,967

 

Capitalized interest

   

 

10,633

 

   

 

5,534

 

   

 

23,345

 

   

 

13,720

 

   

 

20,104

 

Preferred dividends

   

 

11,500

 

   

 

11,500

 

   

 

11,500

 

   

 

11,500

 

   

 

11,500

 

Portion of rental expense representative of
interest

   

 

2,747

 

   

 

2,936

 

   

 

2,914

 

   

 

4,361

 

   

 

3,849

 

    
  
  
  
  
    

$

122,960

 

   

$

126,090

 

   

$

120,944

 

   

$

126,181

 

   

$

126,420

 

    
  
  
  
  

Ratio of earnings to fixed charges

   

 

(3

)

   

 

1.2

 

   

 

(3

)

   

 

(3

)

   

 

1.7

 

(1)   Includes interest expense of majority-owned subsidiaries and amortization of debt issuance costs.
(2)   As a result of the restatement of the Company’s Consolidated Financial Statements (see Item 7 and Note 23 to the Consolidated Financial Statements), the financial information for 1998 and 1997 is derived from unaudited Consolidated Financial Statements.
(3)   The ratio was less than 1:1 for the years ended December 31, 2001, 1999 and 1998 as earnings were inadequate to cover fixed charges by deficiencies of $61.8 million, $98.1 million and $712.7 million, respectively.