þ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware (State or Other Jurisdiction of Incorporation or Organization) |
84-1611629 (I.R.S. Employer Identification No.) |
|
6363 South Fiddlers Green Circle | 80111 | |
Greenwood Village, Colorado | (Zip Code) | |
(Address of Principal Executive Offices) |
(Check one): | Large accelerated filer þ | Accelerated filer o | Non-accelerated filer o | Smaller reporting company o | ||||
(Do not check if a smaller reporting company.) |
Page | ||||||||
1 | ||||||||
1 | ||||||||
2 | ||||||||
3 | ||||||||
4 | ||||||||
45 | ||||||||
45 | ||||||||
48 | ||||||||
48 | ||||||||
54 | ||||||||
60 | ||||||||
63 | ||||||||
63 | ||||||||
64 | ||||||||
66 | ||||||||
67 | ||||||||
69 | ||||||||
70 | ||||||||
70 | ||||||||
70 | ||||||||
70 | ||||||||
70 | ||||||||
71 | ||||||||
72 | ||||||||
73 | ||||||||
Exhibit 10.1 | ||||||||
Exhibit 12.1 | ||||||||
Exhibit 31.1 | ||||||||
Exhibit 31.2 | ||||||||
Exhibit 32.1 | ||||||||
Exhibit 32.2 | ||||||||
Exhibit 99.1 | ||||||||
EX-101 INSTANCE DOCUMENT | ||||||||
EX-101 SCHEMA DOCUMENT | ||||||||
EX-101 CALCULATION LINKBASE DOCUMENT | ||||||||
EX-101 LABELS LINKBASE DOCUMENT | ||||||||
EX-101 PRESENTATION LINKBASE DOCUMENT | ||||||||
EX-101 DEFINITION LINKBASE DOCUMENT |
ITEM 1. | FINANCIAL STATEMENTS. |
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
Sales (Note 3) |
$ | 2,744 | $ | 2,597 | $ | 7,593 | $ | 6,992 | ||||||||
Costs and expenses |
||||||||||||||||
Costs applicable to sales (1) (Note 3) |
1,008 | 891 | 2,865 | 2,608 | ||||||||||||
Amortization |
270 | 242 | 776 | 697 | ||||||||||||
Reclamation and remediation (Note 4) |
6 | 18 | 63 | 44 | ||||||||||||
Exploration |
104 | 67 | 255 | 163 | ||||||||||||
Advanced projects, research and development (Note 5) |
93 | 46 | 247 | 149 | ||||||||||||
General and administrative |
50 | 45 | 145 | 133 | ||||||||||||
Other expense, net (Note 6) |
36 | 50 | 196 | 200 | ||||||||||||
1,567 | 1,359 | 4,547 | 3,994 | |||||||||||||
Other income (expense) |
||||||||||||||||
Other income, net (Note 7) |
(76 | ) | 5 | 3 | 97 | |||||||||||
Interest expense, net |
(65 | ) | (66 | ) | (193 | ) | (210 | ) | ||||||||
(141 | ) | (61 | ) | (190 | ) | (113 | ) | |||||||||
Income before income and mining tax and other items |
1,036 | 1,177 | 2,856 | 2,885 | ||||||||||||
Income and mining tax expense (Note 10) |
(371 | ) | (360 | ) | (863 | ) | (784 | ) | ||||||||
Equity income (loss) of affiliates |
10 | (3 | ) | 12 | (7 | ) | ||||||||||
Income from continuing operations |
675 | 814 | 2,005 | 2,094 | ||||||||||||
Loss from discontinued operations (Note 11) |
| | (136 | ) | | |||||||||||
Net income |
675 | 814 | 1,869 | 2,094 | ||||||||||||
Net income attributable to noncontrolling interests (Note 12) |
(182 | ) | (277 | ) | (475 | ) | (629 | ) | ||||||||
Net income attributable to Newmont stockholders |
$ | 493 | $ | 537 | $ | 1,394 | $ | 1,465 | ||||||||
Net income attributable to Newmont stockholders: |
||||||||||||||||
Continuing operations |
$ | 493 | $ | 537 | $ | 1,530 | $ | 1,465 | ||||||||
Discontinued operations |
| | (136 | ) | | |||||||||||
$ | 493 | $ | 537 | $ | 1,394 | $ | 1,465 | |||||||||
Income per common share (2) (Note 13) |
||||||||||||||||
Basic: |
||||||||||||||||
Continuing operations |
$ | 1.00 | $ | 1.09 | $ | 3.10 | $ | 2.98 | ||||||||
Discontinued operations |
| | (0.28 | ) | | |||||||||||
$ | 1.00 | $ | 1.09 | $ | 2.82 | $ | 2.98 | |||||||||
Diluted: |
||||||||||||||||
Continuing operations |
$ | 0.98 | $ | 1.07 | $ | 3.05 | $ | 2.94 | ||||||||
Discontinued operations |
| | (0.27 | ) | | |||||||||||
$ | 0.98 | $ | 1.07 | $ | 2.78 | $ | 2.94 | |||||||||
Cash dividends declared per common share |
$ | 0.30 | $ | 0.15 | $ | 0.65 | $ | 0.35 |
(1) | Excludes Amortization and Reclamation and remediation. | |
(2) | Attributable to Newmont stockholders. |
1
Nine Months Ended | ||||||||
September 30, | ||||||||
2011 | 2010 | |||||||
Operating activities: |
||||||||
Net income |
$ | 1,869 | $ | 2,094 | ||||
Adjustments: |
||||||||
Amortization |
776 | 697 | ||||||
Loss from discontinued operations |
136 | | ||||||
Reclamation and remediation |
63 | 44 | ||||||
Deferred income taxes |
(106 | ) | (52 | ) | ||||
Stock based compensation and other non-cash benefits |
62 | 54 | ||||||
Impairment of marketable securities |
175 | | ||||||
Gain on asset sales, net |
(68 | ) | (54 | ) | ||||
Other operating adjustments and write-downs |
102 | 138 | ||||||
Net change in operating assets and liabilities (Note 25) |
(343 | ) | (586 | ) | ||||
Net cash provided from continuing operations |
2,666 | 2,335 | ||||||
Net cash used in discontinued operations |
(4 | ) | (13 | ) | ||||
Net cash provided from operations |
2,662 | 2,322 | ||||||
Investing activities: |
||||||||
Additions to property, plant and mine development |
(1,781 | ) | (972 | ) | ||||
Proceeds from sale of marketable securities |
74 | 1 | ||||||
Purchases of marketable securities |
(17 | ) | (9 | ) | ||||
Acquisitions, net |
(2,301 | ) | (2 | ) | ||||
Proceeds from sale of other assets |
6 | 53 | ||||||
Other |
(9 | ) | (73 | ) | ||||
Net cash used in investing activities |
(4,028 | ) | (1,002 | ) | ||||
Financing activities: |
||||||||
Proceeds from debt, net |
1,798 | | ||||||
Repayment of debt |
(2,086 | ) | (274 | ) | ||||
Sale of noncontrolling interests |
| 229 | ||||||
Acquisition of noncontrolling interests |
| (109 | ) | |||||
Dividends paid to common stockholders |
(321 | ) | (172 | ) | ||||
Dividends paid to noncontrolling interests |
(17 | ) | (360 | ) | ||||
Proceeds from stock issuance, net |
35 | 56 | ||||||
Change in restricted cash and other |
3 | 46 | ||||||
Net cash used in financing activities |
(588 | ) | (584 | ) | ||||
Effect of exchange rate changes on cash |
33 | | ||||||
Net change in cash and cash equivalents |
(1,921 | ) | 736 | |||||
Cash and cash equivalents at beginning of period |
4,056 | 3,215 | ||||||
Cash and cash equivalents at end of period |
$ | 2,135 | $ | 3,951 | ||||
2
At September 30, | At December 31, | |||||||
2011 | 2010 | |||||||
ASSETS |
||||||||
Cash and cash equivalents |
$ | 2,135 | $ | 4,056 | ||||
Trade receivables |
312 | 582 | ||||||
Accounts receivable |
259 | 88 | ||||||
Investments (Note 19) |
94 | 113 | ||||||
Inventories (Note 20) |
720 | 658 | ||||||
Stockpiles and ore on leach pads (Note 21) |
627 | 617 | ||||||
Deferred income tax assets |
425 | 177 | ||||||
Other current assets (Note 22) |
1,788 | 962 | ||||||
Current assets |
6,360 | 7,253 | ||||||
Property, plant and mine development, net |
17,019 | 12,907 | ||||||
Investments (Note 19) |
1,254 | 1,568 | ||||||
Stockpiles and ore on leach pads (Note 21) |
2,096 | 1,757 | ||||||
Deferred income tax assets |
1,629 | 1,437 | ||||||
Other long-term assets (Note 22) |
781 | 741 | ||||||
Total assets |
$ | 29,139 | $ | 25,663 | ||||
LIABILITIES |
||||||||
Debt (Note 23) |
$ | 578 | $ | 259 | ||||
Accounts payable |
542 | 427 | ||||||
Employee-related benefits |
269 | 288 | ||||||
Income and mining taxes |
381 | 355 | ||||||
Other current liabilities (Note 24) |
2,705 | 1,418 | ||||||
Current liabilities |
4,475 | 2,747 | ||||||
Debt (Note 23) |
3,659 | 4,182 | ||||||
Reclamation and remediation liabilities (Note 4) |
1,031 | 984 | ||||||
Deferred income tax liabilities |
2,592 | 1,488 | ||||||
Employee-related benefits |
350 | 325 | ||||||
Other long-term liabilities (Note 24) |
328 | 221 | ||||||
Total liabilities |
12,435 | 9,947 | ||||||
Commitments and contingencies (Note 28) |
||||||||
EQUITY |
||||||||
Common stock |
781 | 778 | ||||||
Additional paid-in capital |
8,364 | 8,279 | ||||||
Accumulated other comprehensive income |
462 | 1,108 | ||||||
Retained earnings |
4,253 | 3,180 | ||||||
Newmont stockholders equity |
13,860 | 13,345 | ||||||
Noncontrolling interests |
2,844 | 2,371 | ||||||
Total equity |
16,704 | 15,716 | ||||||
Total liabilities and equity |
$ | 29,139 | $ | 25,663 | ||||
3
4
5
Costs | Advanced | |||||||||||||||||||
Applicable to | Projects and | Pre-Tax | ||||||||||||||||||
Sales | Sales | Amortization | Exploration | Income | ||||||||||||||||
Three Months Ended September 30, 2011 |
||||||||||||||||||||
Nevada |
$ | 712 | $ | 267 | $ | 69 | $ | 39 | $ | 333 | ||||||||||
La Herradura |
92 | 31 | 6 | 5 | 54 | |||||||||||||||
Hope Bay |
| | 3 | 51 | (54 | ) | ||||||||||||||
Other North America |
| | | 1 | (2 | ) | ||||||||||||||
North America |
804 | 298 | 78 | 96 | 331 | |||||||||||||||
Yanacocha |
544 | 194 | 67 | 8 | 280 | |||||||||||||||
Other South America |
| | | 22 | (21 | ) | ||||||||||||||
South America |
544 | 194 | 67 | 30 | 259 | |||||||||||||||
Boddington: |
||||||||||||||||||||
Gold |
245 | 112 | 28 | N/A | N/A | |||||||||||||||
Copper |
40 | 28 | 6 | N/A | N/A | |||||||||||||||
Total |
285 | 140 | 34 | 3 | 124 | |||||||||||||||
Batu Hijau: |
||||||||||||||||||||
Gold |
198 | 58 | 14 | N/A | N/A | |||||||||||||||
Copper |
233 | 73 | 16 | N/A | N/A | |||||||||||||||
Total |
431 | 131 | 30 | 2 | 258 | |||||||||||||||
Other Australia/New Zealand |
437 | 174 | 36 | 14 | 218 | |||||||||||||||
Other Asia Pacific |
| | 1 | 5 | 3 | |||||||||||||||
Asia Pacific |
1,153 | 445 | 101 | 24 | 603 | |||||||||||||||
Ahafo |
243 | 71 | 19 | 11 | 134 | |||||||||||||||
Other Africa |
| | | 4 | (6 | ) | ||||||||||||||
Africa |
243 | 71 | 19 | 15 | 128 | |||||||||||||||
Corporate and Other |
| | 5 | 32 | (285 | ) | ||||||||||||||
Consolidated |
$ | 2,744 | $ | 1,008 | $ | 270 | $ | 197 | $ | 1,036 | ||||||||||
6
Costs | Advanced | |||||||||||||||||||
Applicable to | Projects and | Pre-Tax | ||||||||||||||||||
Sales | Sales | Amortization | Exploration | Income | ||||||||||||||||
Three Months Ended September 30, 2010 |
||||||||||||||||||||
Nevada |
$ | 568 | $ | 259 | $ | 68 | $ | 27 | $ | 204 | ||||||||||
La Herradura |
52 | 20 | 5 | 2 | 25 | |||||||||||||||
Hope Bay |
| | 4 | 20 | (23 | ) | ||||||||||||||
Other North America |
| | | | (1 | ) | ||||||||||||||
North America |
620 | 279 | 77 | 49 | 205 | |||||||||||||||
Yanacocha |
436 | 149 | 42 | 6 | 221 | |||||||||||||||
Other South America |
| | | 11 | (11 | ) | ||||||||||||||
South America |
436 | 149 | 42 | 17 | 210 | |||||||||||||||
Boddington: |
||||||||||||||||||||
Gold |
181 | 91 | 25 | N/A | N/A | |||||||||||||||
Copper |
38 | 19 | 5 | N/A | N/A | |||||||||||||||
Total |
219 | 110 | 30 | 1 | 46 | |||||||||||||||
Batu Hijau: |
||||||||||||||||||||
Gold |
260 | 47 | 12 | N/A | N/A | |||||||||||||||
Copper |
543 | 96 | 26 | N/A | N/A | |||||||||||||||
Total |
803 | 143 | 38 | 1 | 607 | |||||||||||||||
Other Australia/New Zealand |
351 | 153 | 26 | 10 | 149 | |||||||||||||||
Other Asia Pacific |
| | 1 | 5 | (9 | ) | ||||||||||||||
Asia Pacific |
1,373 | 406 | 95 | 17 | 793 | |||||||||||||||
Ahafo |
168 | 57 | 22 | 9 | 87 | |||||||||||||||
Other Africa |
| | | 1 | (2 | ) | ||||||||||||||
Africa |
168 | 57 | 22 | 10 | 85 | |||||||||||||||
Corporate and Other |
| | 6 | 20 | (116 | ) | ||||||||||||||
Consolidated |
$ | 2,597 | $ | 891 | $ | 242 | $ | 113 | $ | 1,177 | ||||||||||
7
Costs | Advanced | |||||||||||||||||||||||||||
Applicable to | Projects and | Pre-Tax | Total | Capital | ||||||||||||||||||||||||
Sales | Sales | Amortization | Exploration | Income | Assets | Expenditures(1) | ||||||||||||||||||||||
Nine Months Ended September 30, 2011 |
||||||||||||||||||||||||||||
Nevada |
$ | 1,823 | $ | 763 | $ | 197 | $ | 94 | $ | 744 | $ | 6,820 | $ | 380 | ||||||||||||||
La Herradura |
238 | 76 | 15 | 14 | 134 | 308 | 55 | |||||||||||||||||||||
Hope Bay |
| | 10 | 147 | (157 | ) | 2,163 | 74 | ||||||||||||||||||||
Other North America |
| | | 2 | 43 | 63 | | |||||||||||||||||||||
North America |
2,061 | 839 | 222 | 257 | 764 | 9,354 | 509 | |||||||||||||||||||||
Yanacocha |
1,430 | 537 | 186 | 25 | 661 | 2,683 | 244 | |||||||||||||||||||||
Other South America |
| | | 46 | (47 | ) | 812 | 448 | ||||||||||||||||||||
South America |
1,430 | 537 | 186 | 71 | 614 | 3,495 | 692 | |||||||||||||||||||||
Boddington: |
||||||||||||||||||||||||||||
Gold |
746 | 329 | 87 | N/A | N/A | N/A | N/A | |||||||||||||||||||||
Copper |
147 | 83 | 20 | N/A | N/A | N/A | N/A | |||||||||||||||||||||
Total |
893 | 412 | 107 | 6 | 368 | 4,439 | 122 | |||||||||||||||||||||
Batu Hijau: |
||||||||||||||||||||||||||||
Gold |
430 | 122 | 28 | N/A | N/A | N/A | N/A | |||||||||||||||||||||
Copper |
844 | 241 | 54 | N/A | N/A | N/A | N/A | |||||||||||||||||||||
Total |
1,274 | 363 | 82 | 3 | 767 | 3,690 | 149 | |||||||||||||||||||||
Other Australia/New Zealand |
1,227 | 498 | 102 | 36 | 583 | 1,169 | 212 | |||||||||||||||||||||
Other Asia Pacific |
| | 2 | 11 | (31 | ) | 415 | 8 | ||||||||||||||||||||
Asia Pacific |
3,394 | 1,273 | 293 | 56 | 1,687 | 9,713 | 491 | |||||||||||||||||||||
Ahafo |
708 | 216 | 61 | 26 | 389 | 1,103 | 71 | |||||||||||||||||||||
Other Africa |
| | | 9 | (14 | ) | 424 | 127 | ||||||||||||||||||||
Africa |
708 | 216 | 61 | 35 | 375 | 1,527 | 198 | |||||||||||||||||||||
Corporate and Other |
| | 14 | 83 | (584 | ) | 5,050 | 23 | ||||||||||||||||||||
Consolidated |
$ | 7,593 | $ | 2,865 | $ | 776 | $ | 502 | $ | 2,856 | $ | 29,139 | $ | 1,913 | ||||||||||||||
(1) | Includes an increase in accrued capital expenditures of $132; consolidated capital expenditures on a cash basis were $1,781. |
8
Costs | Advanced | |||||||||||||||||||||||||||
Applicable to | Projects and | Pre-Tax | Total | Capital | ||||||||||||||||||||||||
Sales | Sales | Amortization | Exploration | Income | Assets | Expenditures(1) | ||||||||||||||||||||||
Nine Months Ended September 30, 2010 |
||||||||||||||||||||||||||||
Nevada |
$ | 1,540 | $ | 756 | $ | 194 | $ | 64 | $ | 495 | $ | 3,306 | $ | 200 | ||||||||||||||
La Herradura |
149 | 52 | 13 | 5 | 79 | 198 | 33 | |||||||||||||||||||||
Hope Bay |
| | 10 | 70 | (80 | ) | 2,046 | 88 | ||||||||||||||||||||
Other North America |
| | | 1 | (4 | ) | 51 | | ||||||||||||||||||||
North America |
1,689 | 808 | 217 | 140 | 490 | 5,601 | 321 | |||||||||||||||||||||
Yanacocha |
1,321 | 442 | 119 | 17 | 686 | 2,645 | 109 | |||||||||||||||||||||
Other South America |
| | | 26 | (26 | ) | 256 | 86 | ||||||||||||||||||||
South America |
1,321 | 442 | 119 | 43 | 660 | 2,901 | 195 | |||||||||||||||||||||
Boddington: |
||||||||||||||||||||||||||||
Gold |
582 | 284 | 81 | N/A | N/A | N/A | N/A | |||||||||||||||||||||
Copper |
117 | 68 | 18 | N/A | N/A | N/A | N/A | |||||||||||||||||||||
Total |
699 | 352 | 99 | 5 | 206 | 4,181 | 106 | |||||||||||||||||||||
Batu Hijau: |
||||||||||||||||||||||||||||
Gold |
595 | 123 | 34 | N/A | N/A | N/A | N/A | |||||||||||||||||||||
Copper |
1,256 | 261 | 72 | N/A | N/A | N/A | N/A | |||||||||||||||||||||
Total |
1,851 | 384 | 106 | 1 | 1,284 | 3,281 | 48 | |||||||||||||||||||||
Other Australia/New Zealand |
973 | 446 | 82 | 21 | 417 | 913 | 111 | |||||||||||||||||||||
Other Asia Pacific |
| | 2 | 15 | | 388 | 11 | |||||||||||||||||||||
Asia Pacific |
3,523 | 1,182 | 289 | 42 | 1,907 | 8,763 | 276 | |||||||||||||||||||||
Ahafo |
459 | 176 | 58 | 15 | 203 | 1,039 | 80 | |||||||||||||||||||||
Other Africa |
| | | 7 | (7 | ) | 269 | 49 | ||||||||||||||||||||
Africa |
459 | 176 | 58 | 22 | 196 | 1,308 | 129 | |||||||||||||||||||||
Corporate and Other |
| | 14 | 65 | (368 | ) | 5,803 | 23 | ||||||||||||||||||||
Consolidated |
$ | 6,992 | $ | 2,608 | $ | 697 | $ | 312 | $ | 2,885 | $ | 24,376 | $ | 944 | ||||||||||||||
(1) | Includes a decrease in accrued capital expenditures of $28; consolidated capital expenditures on a cash basis were $972. |
9
Nine Months Ended September 30, | ||||||||
2011 | 2010 | |||||||
Balance at beginning of period |
$ | 1,048 | $ | 859 | ||||
Additions, changes in estimates and other |
20 | 1 | ||||||
Liabilities settled |
(24 | ) | (32 | ) | ||||
Accretion expense |
44 | 39 | ||||||
Balance at end of period |
$ | 1,088 | $ | 867 | ||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
Reclamation |
$ | (9 | ) | $ | 5 | $ | 19 | $ | 5 | |||||||
Accretion operating |
13 | 11 | 38 | 33 | ||||||||||||
Accretion non-operating |
2 | 2 | 6 | 6 | ||||||||||||
$ | 6 | $ | 18 | $ | 63 | $ | 44 | |||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
Hope Bay |
$ | 36 | $ | 13 | $ | 115 | $ | 48 | ||||||||
Conga |
9 | 2 | 15 | 5 | ||||||||||||
Akyem |
2 | | 3 | 4 | ||||||||||||
Technical and project services |
20 | 12 | 53 | 35 | ||||||||||||
Corporate |
7 | 4 | 16 | 25 | ||||||||||||
Other |
19 | 15 | 45 | 32 | ||||||||||||
$ | 93 | $ | 46 | $ | 247 | $ | 149 | |||||||||
10
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
Regional administration |
$ | 18 | $ | 16 | $ | 55 | $ | 47 | ||||||||
Community development |
6 | 20 | 46 | 95 | ||||||||||||
Fronteer acquisition costs |
1 | | 22 | | ||||||||||||
Indonesian value added tax settlement |
| | 21 | | ||||||||||||
Western Australia power plant |
3 | | 12 | 7 | ||||||||||||
Other |
8 | 14 | 40 | 51 | ||||||||||||
$ | 36 | $ | 50 | $ | 196 | $ | 200 | |||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
Gain on sale of investments, net |
$ | 14 | $ | 5 | $ | 64 | $ | 12 | ||||||||
Income from developing projects, net |
16 | 13 | 36 | 13 | ||||||||||||
Canadian Oil Sands |
9 | 14 | 25 | 39 | ||||||||||||
Foreign currency exchange gain (loss), net |
39 | (44 | ) | 10 | (48 | ) | ||||||||||
Interest income |
2 | 3 | 8 | 8 | ||||||||||||
Gain on asset sales, net |
1 | | 4 | 42 | ||||||||||||
Loss on ineffective portion of derivative
instruments, net |
(10 | ) | | (12 | ) | (1 | ) | |||||||||
Impairment of marketable securities |
(174 | ) | | (175 | ) | | ||||||||||
Other |
27 | 14 | 43 | 32 | ||||||||||||
$ | (76 | ) | $ | 5 | $ | 3 | $ | 97 | ||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
Pension benefit costs, net |
||||||||||||||||
Service cost |
$ | 7 | $ | 5 | $ | 19 | $ | 16 | ||||||||
Interest cost |
9 | 9 | 29 | 27 | ||||||||||||
Expected return on plan assets |
(10 | ) | (8 | ) | (31 | ) | (24 | ) | ||||||||
Amortization, net |
5 | 5 | 17 | 14 | ||||||||||||
$ | 11 | $ | 11 | $ | 34 | $ | 33 | |||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
Other benefit costs, net |
||||||||||||||||
Service cost |
$ | 1 | $ | 1 | $ | 2 | $ | 2 | ||||||||
Interest cost |
2 | 1 | 4 | 4 | ||||||||||||
Amortization, net |
(1 | ) | | (1 | ) | | ||||||||||
$ | 2 | $ | 2 | $ | 5 | $ | 6 | |||||||||
11
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
Stock options |
$ | 5 | $ | 3 | $ | 15 | $ | 12 | ||||||||
Restricted stock units |
4 | 4 | 21 | 12 | ||||||||||||
Performance leveraged stock units |
3 | 1 | 7 | 7 | ||||||||||||
Restricted stock |
| 1 | | 2 | ||||||||||||
Deferred stock |
| 2 | 3 | 7 | ||||||||||||
$ | 12 | $ | 11 | $ | 46 | $ | 40 | |||||||||
12
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
Income before income and mining tax and other items |
$ | 1,036 | $ | 1,177 | $ | 2,856 | $ | 2,885 | ||||||||
United States statutory corporate income tax rate |
35 | % | 35 | % | 35 | % | 35 | % | ||||||||
Income and mining tax expense computed
at United States statutory corporate income
tax rate |
(363 | ) | (412 | ) | (1,000 | ) | (1,010 | ) | ||||||||
Reconciling items: |
||||||||||||||||
Tax benefit generated on change in form
of a non-U.S. subsidiary |
| | 65 | 127 | ||||||||||||
Percentage depletion |
45 | 34 | 156 | 88 | ||||||||||||
Valuation allowance |
(38 | ) | | (38 | ) | 5 | ||||||||||
Other |
(15 | ) | 18 | (46 | ) | 6 | ||||||||||
Income and mining tax expense |
$ | (371 | ) | $ | (360 | ) | $ | (863 | ) | $ | (784 | ) | ||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
Batu Hijau |
$ | 85 | $ | 203 | $ | 251 | $ | 405 | ||||||||
Yanacocha |
94 | 72 | 226 | 223 | ||||||||||||
Other |
3 | 2 | (2 | ) | 1 | |||||||||||
$ | 182 | $ | 277 | $ | 475 | $ | 629 | |||||||||
13
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
Net income attributable to Newmont
stockholders |
||||||||||||||||
Continuing operations |
$ | 493 | $ | 537 | $ | 1,530 | $ | 1,465 | ||||||||
Discontinued operations |
| | (136 | ) | | |||||||||||
$ | 493 | $ | 537 | $ | 1,394 | $ | 1,465 | |||||||||
Weighted average common shares (millions): |
||||||||||||||||
Basic |
494 | 493 | 494 | 492 | ||||||||||||
Effect of employee stock-based awards |
2 | 1 | 1 | 1 | ||||||||||||
Effect of convertible notes |
8 | 8 | 7 | 5 | ||||||||||||
Diluted |
504 | 502 | 502 | 498 | ||||||||||||
Net income attributable to Newmont
stockholders per common share |
||||||||||||||||
Basic: |
||||||||||||||||
Continuing operations |
$ | 1.00 | $ | 1.09 | $ | 3.10 | $ | 2.98 | ||||||||
Discontinued operations |
| | (0.28 | ) | | |||||||||||
$ | 1.00 | $ | 1.09 | $ | 2.82 | $ | 2.98 | |||||||||
Diluted: |
||||||||||||||||
Continuing operations |
$ | 0.98 | $ | 1.07 | $ | 3.05 | $ | 2.94 | ||||||||
Discontinued operations |
| | (0.27 | ) | | |||||||||||
$ | 0.98 | $ | 1.07 | $ | 2.78 | $ | 2.94 | |||||||||
14
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
Net income attributable to Newmont stockholders |
$ | 493 | $ | 537 | $ | 1,394 | $ | 1,465 | ||||||||
Transfers with noncontrolling interests: |
||||||||||||||||
Increase (decrease) in Additional paid in
capital
from PTNNT share transactions,
net of tax of $7 and $40, respectively |
| (7 | ) | | 9 | |||||||||||
Net income attributable to Newmont stockholders
and transfers from noncontrolling interests |
$ | 493 | $ | 530 | $ | 1,394 | $ | 1,474 | ||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
Net income |
$ | 675 | $ | 814 | $ | 1,869 | $ | 2,094 | ||||||||
Other comprehensive income (loss), net of tax: |
||||||||||||||||
Unrealized gain (loss) on marketable
securities |
(270 | ) | 58 | (345 | ) | 30 | ||||||||||
Foreign currency translation adjustments |
(163 | ) | 34 | (36 | ) | 35 | ||||||||||
Pension and other benefit liability
adjustments |
3 | 3 | 11 | 8 | ||||||||||||
Change in fair value of cash flow hedge
instruments: |
||||||||||||||||
Net change from periodic revaluations |
(389 | ) | 163 | (172 | ) | 120 | ||||||||||
Net amount reclassified to income |
(32 | ) | (15 | ) | (104 | ) | (50 | ) | ||||||||
Net unrecognized gain (loss) on
derivatives |
(421 | ) | 148 | (276 | ) | 70 | ||||||||||
(851 | ) | 243 | (646 | ) | 143 | |||||||||||
Comprehensive income (loss) |
$ | (176 | ) | $ | 1,057 | $ | 1,223 | $ | 2,237 | |||||||
Comprehensive income (loss) attributable to: |
||||||||||||||||
Newmont stockholders |
$ | (355 | ) | $ | 779 | $ | 748 | $ | 1,607 | |||||||
Noncontrolling interests |
179 | 278 | 475 | 630 | ||||||||||||
$ | (176 | ) | $ | 1,057 | $ | 1,223 | $ | 2,237 | ||||||||
15
Nine Months Ended September 30, | ||||||||
2011 | 2010 | |||||||
Common stock: |
||||||||
At beginning of period |
$ | 778 | $ | 770 | ||||
Stock based awards |
3 | 4 | ||||||
Shares issued in exchange for exchangeable shares |
| 4 | ||||||
At end of period |
781 | 778 | ||||||
Additional paid-in capital: |
||||||||
At beginning of period |
8,279 | 8,158 | ||||||
Stock based awards |
86 | 97 | ||||||
Shares issued in exchange for exchangeable shares |
(1 | ) | (4 | ) | ||||
Sale of noncontrolling interests |
| 9 | ||||||
At end of period |
8,364 | 8,260 | ||||||
Accumulated other comprehensive income: |
||||||||
At beginning of period |
1,108 | 626 | ||||||
Other comprehensive income |
(646 | ) | 142 | |||||
At end of period |
462 | 768 | ||||||
Retained earnings: |
||||||||
At beginning of period |
3,180 | 1,149 | ||||||
Net income attributable to Newmont stockholders |
1,394 | 1,465 | ||||||
Dividends paid |
(321 | ) | (172 | ) | ||||
At end of period |
4,253 | 2,442 | ||||||
Noncontrolling interests: |
||||||||
At beginning of period |
2,371 | 1,910 | ||||||
Net income attributable to noncontrolling interests |
475 | 629 | ||||||
Dividends paid |
(2 | ) | (367 | ) | ||||
Other comprehensive income |
| 1 | ||||||
Sale of noncontrolling interests, net |
| 98 | ||||||
At end of period |
2,844 | 2,271 | ||||||
Total equity |
$ | 16,704 | $ | 14,519 | ||||
16
Assets: |
||||
Cash |
$ | 2 | ||
Property, plant and mine development, net |
3,208 | |||
Investments |
281 | |||
Other assets |
6 | |||
$ | 3,497 | |||
Liabilities: |
||||
Deferred income tax liability |
$ | 1,223 | ||
Other liabilities |
15 | |||
1,238 | ||||
Net assets acquired |
$ | 2,259 | ||
Level 1
|
Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; | |
Level 2
|
Quoted prices in markets that are not active, or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability; and | |
Level 3
|
Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (supported by little or no market activity). |
17
Fair Value at September 30, 2011 | ||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | |||||||||||||
Assets: |
||||||||||||||||
Cash equivalents |
$ | 94 | $ | 94 | $ | | $ | | ||||||||
Marketable equity securities: |
||||||||||||||||
Extractive industries |
1,237 | 1,237 | | | ||||||||||||
Other |
6 | 6 | | | ||||||||||||
Marketable debt securities: |
||||||||||||||||
Asset backed commercial paper |
18 | | | 18 | ||||||||||||
Corporate |
9 | 9 | | | ||||||||||||
Auction rate securities |
5 | | | 5 | ||||||||||||
Trade
receivable from provisional copper and gold concentrate sales, net |
201 | 201 | | | ||||||||||||
Derivative instruments, net: |
||||||||||||||||
Foreign exchange forward contracts |
50 | | 50 | | ||||||||||||
$ | 1,620 | $ | 1,547 | $ | 50 | $ | 23 | |||||||||
Liabilities: |
||||||||||||||||
Derivative instruments, net: |
||||||||||||||||
Forward starting swap contracts |
$ | 356 | $ | | $ | 356 | $ | | ||||||||
Boddington contingent consideration |
61 | | | 61 | ||||||||||||
Holt property royalty |
179 | | | 179 | ||||||||||||
$ | 596 | $ | | $ | 356 | $ | 240 | |||||||||
18
Asset Backed | Boddington | |||||||||||||||||||||||
Auction Rate | Commercial | Contingent | Holt Property | Total | ||||||||||||||||||||
Securities | Paper | Total Assets | Consideration | Royalty | Liabilities | |||||||||||||||||||
Balance at beginning of period |
$ | 5 | $ | 19 | $ | 24 | $ | 83 | $ | | $ | 83 | ||||||||||||
Unrealized loss |
| (1 | ) | (1 | ) | | | | ||||||||||||||||
Settlements |
| | | (22 | ) | (4 | ) | (26 | ) | |||||||||||||||
Valuation |
| | | | 183 | 183 | ||||||||||||||||||
Balance at end of period |
$ | 5 | $ | 18 | $ | 23 | $ | 61 | $ | 179 | $ | 240 | ||||||||||||
19
Expected Maturity Date | ||||||||||||||||||||||||||||
Total/ | ||||||||||||||||||||||||||||
2011 | 2012 | 2013 | 2014 | 2015 | 2016 | Average | ||||||||||||||||||||||
A$ Operating Fixed Forward Contracts: |
||||||||||||||||||||||||||||
A$ notional (millions) |
315 | 1,114 | 863 | 576 | 292 | 63 | 3,223 | |||||||||||||||||||||
Average rate ($/A$) |
0.87 | 0.90 | 0.91 | 0.89 | 0.86 | 0.90 | 0.90 | |||||||||||||||||||||
Expected hedge ratio |
84 | % | 70 | % | 53 | % | 37 | % | 19 | % | 6 | % | ||||||||||||||||
A$ Capital Fixed Forward Contracts: |
||||||||||||||||||||||||||||
A$ notional (millions) |
11 | 57 | 51 | 22 | | | 141 | |||||||||||||||||||||
Average rate ($/A$) |
1.03 | 1.01 | 0.98 | 0.96 | | | 0.99 | |||||||||||||||||||||
Expected hedge ratio |
55 | % | 41 | % | 28 | % | 23 | % | | | ||||||||||||||||||
NZ$ Operating Fixed Forward Contracts: |
||||||||||||||||||||||||||||
NZ$ notional (millions) |
20 | 53 | 15 | | | | 88 | |||||||||||||||||||||
Average rate ($/NZ$) |
0.73 | 0.75 | 0.78 | | | | 0.75 | |||||||||||||||||||||
Expected hedge ratio |
64 | % | 41 | % | 15 | % | | | |
Expected Maturity Date | ||||||||||||||||
Total/ | ||||||||||||||||
2011 | 2012 | 2013 | Average | |||||||||||||
Diesel Fixed Forward Contracts: |
||||||||||||||||
Diesel gallons (millions) |
6 | 18 | 4 | 28 | ||||||||||||
Average rate ($/gallon) |
2.61 | 2.77 | 2.96 | 2.76 | ||||||||||||
Expected hedge ratio |
58 | % | 39 | % | 10 | % |
20
Fair Value | ||||||||||||||||
At September 30, 2011 | ||||||||||||||||
Other | Other | Other Long- | ||||||||||||||
Current | Other Long- | Current | Term | |||||||||||||
Assets | Term Assets | Liabilities | Liabilities | |||||||||||||
Foreign currency exchange contracts: |
||||||||||||||||
A$ operating fixed forward contracts |
$ | 88 | $ | 51 | $ | 51 | $ | 29 | ||||||||
A$ capital fixed forward contracts |
| | 4 | 5 | ||||||||||||
NZ$ operating fixed forward contracts |
2 | | 1 | 1 | ||||||||||||
Diesel fixed forward contracts |
5 | | 3 | 2 | ||||||||||||
Forward starting swap contracts |
| | 356 | | ||||||||||||
Total derivative instruments (Note 22 and 24) |
$ | 95 | $ | 51 | $ | 415 | $ | 37 | ||||||||
Fair Value | ||||||||||||||||
At December 31, 2010 | ||||||||||||||||
Other | Other | Other Long- | ||||||||||||||
Current | Other Long- | Current | Term | |||||||||||||
Assets | Term Assets | Liabilities | Liabilities | |||||||||||||
Foreign currency exchange contracts: |
||||||||||||||||
A$ operating fixed forward contracts |
$ | 181 | 114 | | | |||||||||||
NZ$ operating fixed forward contracts |
5 | 1 | | | ||||||||||||
Diesel fixed forward contracts |
7 | 1 | | | ||||||||||||
Interest rate swap contracts |
3 | | | | ||||||||||||
Total derivative instruments (Note 22 and 24) |
$ | 196 | $ | 116 | $ | | $ | | ||||||||
21
Foreign Currency | Forward Starting Swap | |||||||||||||||||||||||
Exchange Contracts | Diesel Forward Contracts | Contracts | ||||||||||||||||||||||
2011 | 2010 | 2011 | 2010 | 2011 | 2010 | |||||||||||||||||||
For the three months ended September 30, |
||||||||||||||||||||||||
Cash flow hedging relationships: |
||||||||||||||||||||||||
Gain (loss)
recognized in other
comprehensive income
(effective portion) |
$ | (263 | ) | $ | 232 | $ | (7 | ) | $ | 5 | $ | (345 | ) | $ | | |||||||||
Gain reclassified
from Accumulated other
comprehensive income into
income (effective
portion) (1) |
50 | 18 | 3 | 1 | | | ||||||||||||||||||
Loss reclassified
from Accumulated other
comprehensive income into
income (ineffective
portion) (2) |
| | | | (10 | ) | | |||||||||||||||||
For the nine months ended September 30, |
||||||||||||||||||||||||
Cash flow hedging relationships: |
||||||||||||||||||||||||
Gain (loss)
recognized in other
comprehensive income
(effective portion) |
$ | (70 | ) | $ | 174 | $ | 3 | $ | | $ | (356 | ) | $ | | ||||||||||
Gain reclassified
from Accumulated other
comprehensive income into
income (effective
portion) (1) |
141 | 63 | 12 | 3 | | | ||||||||||||||||||
Loss reclassified
from Accumulated other
comprehensive income into
income (ineffective
portion) (2) |
| | | | (10 | ) | |
(1) | The gain for the effective portion of foreign exchange and diesel cash flow hedges reclassified from Accumulated other comprehensive income is included in Costs applicable to sales. | |
(2) | The ineffective portion recognized for cash flow hedges is included in Other Income, net. |
22
Interest Rate | 8 5/8% Debentures | |||||||||||||||
Swap Contracts | (Hedged Portion) | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
For the three months ended September 30, |
||||||||||||||||
Fair value hedging relationships: |
||||||||||||||||
Gain recognized in
income (effective
portion) (1) |
$ | | $ | 1 | $ | | $ | 2 | ||||||||
Gain (loss) recognized
in income (ineffective
portion) (2) |
| (1 | ) | | 1 | |||||||||||
For the nine months ended September 30, |
||||||||||||||||
Fair value hedging relationships: |
||||||||||||||||
Gain (loss) recognized
in income (effective
portion) (1) |
$ | 3 | $ | 4 | $ | (6 | ) | $ | 4 | |||||||
Gain (loss) recognized
in income (ineffective
portion) (2) |
(2 | ) | (3 | ) | | 2 |
(1) | The gain (loss) recognized for the effective portion of fair value hedges and the underlying hedged debt is included in Interest expense, net. | |
(2) | The ineffective portion recognized for fair value hedges and the underlying hedged debt is included in Other income, net. |
23
At September 30, 2011 | ||||||||||||||||
Cost/Equity | Unrealized | Fair/Equity | ||||||||||||||
Basis | Gain | Loss | Basis | |||||||||||||
Current: |
||||||||||||||||
Marketable Equity Securities: |
||||||||||||||||
Paladin Energy Ltd. |
$ | 60 | $ | | $ | | $ | 60 | ||||||||
Other |
21 | 17 | (4 | ) | 34 | |||||||||||
$ | 81 | $ | 17 | $ | (4 | ) | $ | 94 | ||||||||
Long-term: |
||||||||||||||||
Marketable Debt Securities: |
||||||||||||||||
Asset backed commercial paper |
$ | 24 | $ | | $ | (6 | ) | $ | 18 | |||||||
Auction rate securities |
7 | | (2 | ) | 5 | |||||||||||
Corporate |
8 | 1 | | 9 | ||||||||||||
39 | 1 | (8 | ) | 32 | ||||||||||||
Marketable Equity Securities: |
||||||||||||||||
Canadian Oil Sands Ltd. |
296 | 308 | | 604 | ||||||||||||
Gabriel Resources Ltd. |
74 | 209 | | 283 | ||||||||||||
Regis Resources Ltd. |
23 | 154 | | 177 | ||||||||||||
Other |
94 | 12 | (21 | ) | 85 | |||||||||||
487 | 683 | (21 | ) | 1,149 | ||||||||||||
Other investments, at cost |
10 | | | 10 | ||||||||||||
Investment in Affiliates: |
||||||||||||||||
La Zanja |
63 | | | 63 | ||||||||||||
$ | 599 | $ | 684 | $ | (29 | ) | $ | 1,254 | ||||||||
24
At December 31, 2010 | ||||||||||||||||
Cost/Equity | Unrealized | Fair/Equity | ||||||||||||||
Basis | Gain | Loss | Basis | |||||||||||||
Current: |
||||||||||||||||
Marketable Equity Securities: |
||||||||||||||||
New Gold Inc. |
$ | 5 | $ | 54 | $ | | $ | 59 | ||||||||
Other |
19 | 35 | | 54 | ||||||||||||
$ | 24 | $ | 89 | $ | | $ | 113 | |||||||||
Long-term: |
||||||||||||||||
Marketable Debt Securities: |
||||||||||||||||
Asset backed commercial paper |
$ | 25 | $ | | $ | (6 | ) | $ | 19 | |||||||
Auction rate securities |
7 | | (2 | ) | 5 | |||||||||||
Corporate |
7 | 3 | | 10 | ||||||||||||
39 | 3 | (8 | ) | 34 | ||||||||||||
Marketable Equity Securities: |
||||||||||||||||
Canadian Oil Sands Ltd. |
308 | 508 | | 816 | ||||||||||||
Gabriel Resources Ltd. |
78 | 325 | | 403 | ||||||||||||
Regis Resources Ltd. |
23 | 148 | | 171 | ||||||||||||
Other |
39 | 37 | | 76 | ||||||||||||
448 | 1,018 | | 1,466 | |||||||||||||
Other investments, at cost |
11 | | | 11 | ||||||||||||
Investment in Affiliates: |
||||||||||||||||
La Zanja |
57 | | | 57 | ||||||||||||
$ | 555 | $ | 1,021 | $ | (8 | ) | $ | 1,568 | ||||||||
25
Less than 12 Months | 12 Months or Greater | Total | ||||||||||||||||||||||
Unrealized | Unrealized | Unrealized | ||||||||||||||||||||||
At September 30, 2011 | Fair Value | Losses | Fair Value | Losses | Fair Value | Losses | ||||||||||||||||||
Marketable equity securities |
$ | 27 | $ | 25 | $ | | $ | | $ | 27 | $ | 25 | ||||||||||||
Asset backed commercial paper |
| | 18 | 6 | 18 | 6 | ||||||||||||||||||
Auction rate securities |
| | 5 | 2 | 5 | 2 | ||||||||||||||||||
$ | 27 | $ | 25 | $ | 23 | $ | 8 | $ | 50 | $ | 33 | |||||||||||||
Less than 12 Months | 12 Months or Greater | Total | ||||||||||||||||||||||
Unrealized | Unrealized | Unrealized | ||||||||||||||||||||||
At December 31, 2010 | Fair Value | Losses | Fair Value | Losses | Fair Value | Losses | ||||||||||||||||||
Asset backed commercial paper |
$ | | $ | | $ | 19 | $ | 6 | $ | 19 | $ | 6 | ||||||||||||
Auction rate securities |
| | 5 | 2 | 5 | 2 | ||||||||||||||||||
$ | | $ | | $ | 24 | $ | 8 | $ | 24 | $ | 8 | |||||||||||||
At September 30, | At December 31, | |||||||
2011 | 2010 | |||||||
In-process |
$ | 110 | $ | 142 | ||||
Concentrate |
121 | 111 | ||||||
Precious metals |
40 | 4 | ||||||
Materials, supplies and other |
449 | 401 | ||||||
$ | 720 | $ | 658 | |||||
26
At September 30, | At December 31, | |||||||
2011 | 2010 | |||||||
Current: |
||||||||
Stockpiles |
$ | 426 | $ | 389 | ||||
Ore on leach pads |
201 | 228 | ||||||
$ | 627 | $ | 617 | |||||
Long-term: |
||||||||
Stockpiles |
$ | 1,787 | $ | 1,397 | ||||
Ore on leach pads |
309 | 360 | ||||||
$ | 2,096 | $ | 1,757 | |||||
At September 30, | At December 31, | |||||||
2011 | 2010 | |||||||
Stockpiles and ore on leach pads: |
||||||||
Nevada |
$ | 518 | $ | 479 | ||||
La Herradura |
9 | 6 | ||||||
Yanacocha |
460 | 496 | ||||||
Boddington |
407 | 248 | ||||||
Batu Hijau |
1,035 | 879 | ||||||
Other Australia/New Zealand |
146 | 145 | ||||||
Ahafo |
148 | 121 | ||||||
$ | 2,723 | $ | 2,374 | |||||
At September 30, | At December 31, | |||||||
2011 | 2010 | |||||||
Other current assets: |
||||||||
Refinery metal inventory and receivable |
$ | 1,445 | $ | 617 | ||||
Prepaid assets |
155 | 65 | ||||||
Derivative instruments |
95 | 196 | ||||||
Other |
93 | 84 | ||||||
$ | 1,788 | $ | 962 | |||||
Other long-term assets: |
||||||||
Goodwill |
$ | 188 | $ | 188 | ||||
Intangible assets |
149 | 91 | ||||||
Income tax receivable |
141 | 119 | ||||||
Debt issuance costs |
60 | 39 | ||||||
Derivative instruments |
51 | 116 | ||||||
Restricted cash |
22 | 25 | ||||||
Other |
170 | 163 | ||||||
$ | 781 | $ | 741 | |||||
27
At September 30, 2011 | At December 31, 2010 | |||||||||||||||
Current | Non-Current | Current | Non-Current | |||||||||||||
Sale-leaseback of refractory ore treatment plant |
$ | 61 | $ | 73 | $ | 30 | $ | 134 | ||||||||
8 5/8% debentures, net of discount (due 2011) |
| | 217 | | ||||||||||||
2012 Convertible Senior Notes, net of discount |
507 | | | 488 | ||||||||||||
2014 Convertible Senior Notes, net of discount |
| 506 | | 489 | ||||||||||||
2017 Convertible Senior Notes, net of discount |
| 448 | | 434 | ||||||||||||
2019 Senior Notes, net of discount |
| 896 | | 896 | ||||||||||||
2035 Senior Notes, net of discount |
| 598 | | 598 | ||||||||||||
2039 Senior Notes, net of discount |
| 1,087 | | 1,087 | ||||||||||||
Ahafo project facility |
10 | 50 | 10 | 55 | ||||||||||||
Other capital leases |
| 1 | 2 | 1 | ||||||||||||
$ | 578 | $ | 3,659 | $ | 259 | $ | 4,182 | |||||||||
28
At September 30, | At December 31, | |||||||
2011 | 2010 | |||||||
Other current liabilities: |
||||||||
Refinery metal payable |
$ | 1,445 | $ | 617 | ||||
Derivative instruments |
415 | | ||||||
Accrued operating costs |
245 | 217 | ||||||
Accrued capital expenditures |
208 | 83 | ||||||
Interest |
86 | 66 | ||||||
Taxes other than income and mining |
80 | 135 | ||||||
Reclamation and remediation liabilities |
57 | 64 | ||||||
Boddington contingent consideration |
51 | 32 | ||||||
Royalties |
42 | 90 | ||||||
Deferred income tax |
15 | 54 | ||||||
Holt property royalty |
13 | | ||||||
Other |
48 | 60 | ||||||
$ | 2,705 | $ | 1,418 | |||||
Other long-term liabilities: |
||||||||
Holt property royalty |
$ | 166 | $ | 40 | ||||
Power supply agreements |
43 | 45 | ||||||
Derivative instruments |
37 | | ||||||
Income and mining taxes |
34 | 36 | ||||||
Boddington contingent consideration |
10 | 51 | ||||||
Other |
38 | 49 | ||||||
$ | 328 | $ | 221 | |||||
Nine Months Ended September 30, | ||||||||
2011 | 2010 | |||||||
Decrease (increase) in operating assets: |
||||||||
Trade and accounts receivable |
$ | 125 | $ | (63 | ) | |||
Inventories, stockpiles and ore on leach pads |
(332 | ) | (297 | ) | ||||
EGR refinery assets |
(855 | ) | (200 | ) | ||||
Other assets |
(109 | ) | (50 | ) | ||||
Increase (decrease) in operating liabilities: |
||||||||
Accounts payable and other accrued liabilities |
(3 | ) | (144 | ) | ||||
EGR refinery liabilities |
855 | 200 | ||||||
Reclamation liabilities |
(24 | ) | (32 | ) | ||||
$ | (343 | ) | $ | (586 | ) | |||
29
Nine Months Ended September 30, | ||||||||
2011 | 2010 | |||||||
Income and mining taxes, net of refunds |
$ | 1,301 | $ | 926 | ||||
Pension plan and other benefits and contributions |
$ | 12 | $ | 72 | ||||
Interest, net of amounts capitalized |
$ | 117 | $ | 138 |
Three Months Ended September 30, 2011 | ||||||||||||||||||||
Newmont | ||||||||||||||||||||
Newmont | Mining | |||||||||||||||||||
Mining | Newmont | Other | Corporation | |||||||||||||||||
Condensed Consolidating Statement of Income | Corporation | USA | Subsidiaries | Eliminations | Consolidated | |||||||||||||||
Sales |
$ | | $ | 1,779 | $ | 965 | $ | | $ | 2,744 | ||||||||||
Costs and expenses |
||||||||||||||||||||
Costs applicable to sales (1) |
| 623 | 393 | (8 | ) | 1,008 | ||||||||||||||
Amortization |
| 175 | 96 | (1 | ) | 270 | ||||||||||||||
Reclamation and remediation |
| 2 | 4 | | 6 | |||||||||||||||
Exploration |
| 52 | 52 | | 104 | |||||||||||||||
Advanced projects, research and development |
| 47 | 46 | | 93 | |||||||||||||||
General and administrative |
| 41 | | 9 | 50 | |||||||||||||||
Other expense, net |
| 17 | 19 | | 36 | |||||||||||||||
| 957 | 610 | | 1,567 | ||||||||||||||||
Other income (expense) |
||||||||||||||||||||
Other income, net |
(161 | ) | 31 | 54 | | (76 | ) | |||||||||||||
Interest income intercompany |
39 | 2 | 7 | (48 | ) | | ||||||||||||||
Interest expense intercompany |
(8 | ) | | (40 | ) | 48 | | |||||||||||||
Interest expense, net |
(55 | ) | (6 | ) | (4 | ) | | (65 | ) | |||||||||||
(185 | ) | 27 | 17 | | (141 | ) | ||||||||||||||
Income before income and mining tax and other items |
(185 | ) | 849 | 372 | | 1,036 | ||||||||||||||
Income and mining tax expense |
30 | (288 | ) | (113 | ) | | (371 | ) | ||||||||||||
Equity income (loss) of affiliates |
648 | (19 | ) | 81 | (700 | ) | 10 | |||||||||||||
Net income |
493 | 542 | 340 | (700 | ) | 675 | ||||||||||||||
Net income attributable to noncontrolling interests |
| (186 | ) | (17 | ) | 21 | (182 | ) | ||||||||||||
Net income attributable to Newmont stockholders |
$ | 493 | $ | 356 | $ | 323 | $ | (679 | ) | $ | 493 | |||||||||
(1) | Excludes Amortization and Reclamation and remediation. |
30
Three Months Ended September 30, 2010 | ||||||||||||||||||||
Newmont | ||||||||||||||||||||
Newmont | Mining | |||||||||||||||||||
Mining | Newmont | Other | Corporation | |||||||||||||||||
Condensed Consolidating Statement of Income | Corporation | USA | Subsidiaries | Eliminations | Consolidated | |||||||||||||||
Sales |
$ | | $ | 1,860 | $ | 737 | $ | | $ | 2,597 | ||||||||||
Costs and expenses |
||||||||||||||||||||
Costs applicable to sales (1) |
| 571 | 326 | (6 | ) | 891 | ||||||||||||||
Amortization |
| 159 | 83 | | 242 | |||||||||||||||
Reclamation and remediation |
| 13 | 5 | | 18 | |||||||||||||||
Exploration |
| 41 | 26 | | 67 | |||||||||||||||
Advanced projects, research and development |
| 26 | 21 | (1 | ) | 46 | ||||||||||||||
General and administrative |
| 37 | 1 | 7 | 45 | |||||||||||||||
Other expense, net |
| 41 | 9 | | 50 | |||||||||||||||
| 888 | 471 | | 1,359 | ||||||||||||||||
Other income (expense) |
||||||||||||||||||||
Other income, net |
| 1 | 4 | | 5 | |||||||||||||||
Interest income intercompany |
35 | 2 | | (37 | ) | | ||||||||||||||
Interest expense intercompany |
(3 | ) | | (34 | ) | 37 | | |||||||||||||
Interest expense, net |
(61 | ) | (3 | ) | (2 | ) | | (66 | ) | |||||||||||
(29 | ) | | (32 | ) | | (61 | ) | |||||||||||||
Income before income and mining tax and other items |
(29 | ) | 972 | 234 | | 1,177 | ||||||||||||||
Income and mining tax expense |
(1 | ) | (309 | ) | (50 | ) | | (360 | ) | |||||||||||
Equity income (loss) of affiliates |
567 | 1 | 79 | (650 | ) | (3 | ) | |||||||||||||
Net income |
537 | 664 | 263 | (650 | ) | 814 | ||||||||||||||
Net income attributable to noncontrolling interests |
| (346 | ) | 25 | 44 | (277 | ) | |||||||||||||
Net income attributable to Newmont stockholders |
$ | 537 | $ | 318 | $ | 288 | $ | (606 | ) | $ | 537 | |||||||||
(1) | Excludes Amortization and Reclamation and remediation. |
31
Nine Months Ended September 30, 2011 | ||||||||||||||||||||
Newmont | ||||||||||||||||||||
Newmont | Mining | |||||||||||||||||||
Mining | Newmont | Other | Corporation | |||||||||||||||||
Condensed Consolidating Statement of Income | Corporation | USA | Subsidiaries | Eliminations | Consolidated | |||||||||||||||
Sales |
$ | | $ | 4,765 | $ | 2,828 | $ | | $ | 7,593 | ||||||||||
Costs and expenses |
||||||||||||||||||||
Costs applicable to sales (1) |
| 1,740 | 1,152 | (27 | ) | 2,865 | ||||||||||||||
Amortization |
| 490 | 287 | (1 | ) | 776 | ||||||||||||||
Reclamation and remediation |
| 50 | 13 | | 63 | |||||||||||||||
Exploration |
| 133 | 122 | | 255 | |||||||||||||||
Advanced projects, research and development |
| 115 | 133 | (1 | ) | 247 | ||||||||||||||
General and administrative |
| 114 | 2 | 29 | 145 | |||||||||||||||
Other expense, net |
| 138 | 58 | | 196 | |||||||||||||||
| 2,780 | 1,767 | | 4,547 | ||||||||||||||||
Other income (expense) |
||||||||||||||||||||
Other income, net |
(169 | ) | 98 | 74 | | 3 | ||||||||||||||
Interest income intercompany |
115 | 6 | 11 | (132 | ) | | ||||||||||||||
Interest expense intercompany |
(14 | ) | | (118 | ) | 132 | | |||||||||||||
Interest expense, net |
(168 | ) | (18 | ) | (7 | ) | | (193 | ) | |||||||||||
(236 | ) | 86 | (40 | ) | | (190 | ) | |||||||||||||
Income before income and mining tax and other items |
(236 | ) | 2,071 | 1,021 | | 2,856 | ||||||||||||||
Income and mining tax expense |
45 | (607 | ) | (301 | ) | | (863 | ) | ||||||||||||
Equity income (loss) of affiliates |
1,585 | (16 | ) | 220 | (1,777 | ) | 12 | |||||||||||||
Income from continuing operations |
1,394 | 1,448 | 940 | (1,777 | ) | 2,005 | ||||||||||||||
Loss from discontinued operations |
| 7 | (143 | ) | | (136 | ) | |||||||||||||
Net income |
1,394 | 1,455 | 797 | (1,777 | ) | 1,869 | ||||||||||||||
Net income attributable to noncontrolling interests |
| (551 | ) | (7 | ) | 83 | (475 | ) | ||||||||||||
Net income attributable to Newmont stockholders |
$ | 1,394 | $ | 904 | $ | 790 | $ | (1,694 | ) | $ | 1,394 | |||||||||
(1) | Excludes Amortization and Reclamation and remediation. |
32
Nine Months Ended September 30, 2010 | ||||||||||||||||||||
Newmont | ||||||||||||||||||||
Newmont | Mining | |||||||||||||||||||
Mining | Newmont | Other | Corporation | |||||||||||||||||
Condensed Consolidating Statement of Income | Corporation | USA | Subsidiaries | Eliminations | Consolidated | |||||||||||||||
Sales |
$ | | $ | 4,862 | $ | 2,130 | $ | | $ | 6,992 | ||||||||||
Costs and expenses |
||||||||||||||||||||
Costs applicable to sales (1) |
| 1,635 | 990 | (17 | ) | 2,608 | ||||||||||||||
Amortization |
| 445 | 253 | (1 | ) | 697 | ||||||||||||||
Reclamation and remediation |
| 32 | 12 | | 44 | |||||||||||||||
Exploration |
| 97 | 66 | | 163 | |||||||||||||||
Advanced projects, research and development |
| 80 | 70 | (1 | ) | 149 | ||||||||||||||
General and administrative |
| 112 | 2 | 19 | 133 | |||||||||||||||
Other expense, net |
| 156 | 44 | | 200 | |||||||||||||||
| 2,557 | 1,437 | | 3,994 | ||||||||||||||||
Other income (expense) |
||||||||||||||||||||
Other income, net |
| 15 | 82 | | 97 | |||||||||||||||
Interest income intercompany |
106 | 6 | 2 | (114 | ) | | ||||||||||||||
Interest expense intercompany |
(8 | ) | | (106 | ) | 114 | | |||||||||||||
Interest expense, net |
(187 | ) | (19 | ) | (4 | ) | | (210 | ) | |||||||||||
(89 | ) | 2 | (26 | ) | | (113 | ) | |||||||||||||
Income before income and mining tax and other items |
(89 | ) | 2,307 | 667 | | 2,885 | ||||||||||||||
Income and mining tax expense |
149 | (775 | ) | (158 | ) | | (784 | ) | ||||||||||||
Equity income (loss) of affiliates |
1,405 | 2 | 209 | (1,623 | ) | (7 | ) | |||||||||||||
Net income |
1,465 | 1,534 | 718 | (1,623 | ) | 2,094 | ||||||||||||||
Net income attributable to noncontrolling interests |
| (774 | ) | 20 | 125 | (629 | ) | |||||||||||||
Net income attributable to Newmont stockholders |
$ | 1,465 | $ | 760 | $ | 738 | $ | (1,498 | ) | $ | 1,465 | |||||||||
(1) | Excludes Amortization and Reclamation and remediation. |
33
Nine Months Ended September 30, 2011 | ||||||||||||||||||||
Newmont | ||||||||||||||||||||
Newmont | Mining | |||||||||||||||||||
Mining | Newmont | Other | Corporation | |||||||||||||||||
Condensed Consolidating Statement of Cash Flows | Corporation | USA | Subsidiaries | Eliminations | Consolidated | |||||||||||||||
Operating activities: |
||||||||||||||||||||
Net income (loss) |
$ | 1,394 | $ | 1,455 | $ | 797 | $ | (1,777 | ) | $ | 1,869 | |||||||||
Adjustments |
193 | 542 | (1,372 | ) | 1,777 | 1,140 | ||||||||||||||
Net change in operating assets and liabilities |
(5 | ) | (375 | ) | 37 | | (343 | ) | ||||||||||||
Net cash provided from (used in) continuing operations |
1,582 | 1,622 | (538 | ) | | 2,666 | ||||||||||||||
Net cash used in discontinued operations |
| | (4 | ) | | (4 | ) | |||||||||||||
Net cash provided from (used in) operations |
1,582 | 1,622 | (542 | ) | | 2,662 | ||||||||||||||
Investing activities: |
||||||||||||||||||||
Additions to property, plant and mine development |
| (1,190 | ) | (591 | ) | | (1,781 | ) | ||||||||||||
Proceeds from sale of marketable securities |
| 62 | 12 | | 74 | |||||||||||||||
Purchases of marketable securities |
| | (17 | ) | | (17 | ) | |||||||||||||
Acquisitions, net |
| | (2,301 | ) | | (2,301 | ) | |||||||||||||
Proceeds from sale of other assets |
| (56 | ) | 62 | | 6 | ||||||||||||||
Other |
| | (9 | ) | | (9 | ) | |||||||||||||
Net cash used in investing activities |
| (1,184 | ) | (2,844 | ) | | (4,028 | ) | ||||||||||||
Financing activities: |
||||||||||||||||||||
Net borrowings (repayments) |
(7 | ) | (276 | ) | (5 | ) | | (288 | ) | |||||||||||
Net intercompany borrowings (repayments) |
(1,289 | ) | (2,240 | ) | 3,529 | | | |||||||||||||
Dividends paid to common stockholders |
(321 | ) | | | | (321 | ) | |||||||||||||
Dividends paid to noncontrolling interests |
| (17 | ) | | | (17 | ) | |||||||||||||
Proceeds from stock issuance, net |
35 | | | | 35 | |||||||||||||||
Change in restricted cash and other |
| | 3 | | 3 | |||||||||||||||
Net cash provided from (used in) financing activities |
(1,582 | ) | (2,533 | ) | 3,527 | | (588 | ) | ||||||||||||
Effect of exchange rate changes on cash |
| (3 | ) | 36 | | 33 | ||||||||||||||
Net change in cash and cash equivalents |
| (2,098 | ) | 177 | | (1,921 | ) | |||||||||||||
Cash and cash equivalents at beginning of period |
| 3,877 | 179 | | 4,056 | |||||||||||||||
Cash and cash equivalents at end of period |
$ | | $ | 1,779 | $ | 356 | $ | | $ | 2,135 | ||||||||||
34
Nine Months Ended September 30, 2010 | ||||||||||||||||||||
Newmont | ||||||||||||||||||||
Newmont | Mining | |||||||||||||||||||
Mining | Newmont | Other | Corporation | |||||||||||||||||
Condensed Consolidating Statement of Cash Flows | Corporation | USA | Subsidiaries | Eliminations | Consolidated | |||||||||||||||
Operating activities: |
||||||||||||||||||||
Net income (loss) |
$ | 1,465 | $ | 1,534 | $ | 718 | $ | (1,623 | ) | $ | 2,094 | |||||||||
Adjustments |
(98 | ) | 496 | (1,194 | ) | 1,623 | 827 | |||||||||||||
Net change in operating assets and liabilities |
(43 | ) | (415 | ) | (128 | ) | | (586 | ) | |||||||||||
Net cash provided from (used in) continuing operations |
1,324 | 1,615 | (604 | ) | | 2,335 | ||||||||||||||
Net cash used in discontinued operations |
| (13 | ) | | | (13 | ) | |||||||||||||
Net cash provided from (used in) operations |
1,324 | 1,602 | (604 | ) | | 2,322 | ||||||||||||||
Investing activities: |
||||||||||||||||||||
Additions to property, plant and mine development |
| (478 | ) | (494 | ) | | (972 | ) | ||||||||||||
Proceeds from sale of marketable securities |
| | 1 | | 1 | |||||||||||||||
Purchases of marketable securities |
| | (9 | ) | | (9 | ) | |||||||||||||
Acquisitions, net |
| | (2 | ) | | (2 | ) | |||||||||||||
Proceeds from sale of other assets |
| 8 | 45 | | 53 | |||||||||||||||
Other |
| | (73 | ) | | (73 | ) | |||||||||||||
Net cash used in investing activities |
| (470 | ) | (532 | ) | | (1,002 | ) | ||||||||||||
Financing activities: |
||||||||||||||||||||
Net repayments |
| (269 | ) | (5 | ) | | (274 | ) | ||||||||||||
Net intercompany borrowings (repayments) |
(1,216 | ) | (11 | ) | 1,325 | (98 | ) | | ||||||||||||
Sale of noncontrolling interests |
| 229 | | | 229 | |||||||||||||||
Acquisition of noncontrolling interests |
| | (109 | ) | | (109 | ) | |||||||||||||
Dividends paid to common stockholders |
(172 | ) | | | | (172 | ) | |||||||||||||
Dividends paid to noncontrolling interests |
| (458 | ) | | 98 | (360 | ) | |||||||||||||
Proceeds from stock issuance, net |
56 | | | | 56 | |||||||||||||||
Change in restricted cash and other |
| 47 | (1 | ) | | 46 | ||||||||||||||
Net cash provided from (used in) financing activities |
(1,332 | ) | (462 | ) | 1,210 | | (584 | ) | ||||||||||||
Effect of exchange rate changes on cash |
| 2 | (2 | ) | | | ||||||||||||||
Net change in cash and cash equivalents |
(8 | ) | 672 | 72 | | 736 | ||||||||||||||
Cash and cash equivalents at beginning of period |
8 | 3,067 | 140 | | 3,215 | |||||||||||||||
Cash and cash equivalents at end of period |
$ | | $ | 3,739 | $ | 212 | $ | | $ | 3,951 | ||||||||||
35
At September 30, 2011 | ||||||||||||||||||||
Newmont | ||||||||||||||||||||
Newmont | Mining | |||||||||||||||||||
Mining | Newmont | Other | Corporation | |||||||||||||||||
Condensed Consolidating Balance Sheet | Corporation | USA | Subsidiaries | Eliminations | Consolidated | |||||||||||||||
Assets |
||||||||||||||||||||
Cash and cash equivalents |
$ | | $ | 1,779 | $ | 356 | $ | | $ | 2,135 | ||||||||||
Trade receivables |
| 273 | 39 | | 312 | |||||||||||||||
Accounts receivable |
1,458 | 3,152 | 773 | (5,124 | ) | 259 | ||||||||||||||
Investments |
60 | 8 | 26 | | 94 | |||||||||||||||
Inventories |
| 370 | 350 | | 720 | |||||||||||||||
Stockpiles and ore on leach pads |
| 547 | 80 | | 627 | |||||||||||||||
Deferred income tax assets |
121 | 253 | 51 | | 425 | |||||||||||||||
Other current assets |
| 149 | 1,639 | | 1,788 | |||||||||||||||
Current assets |
1,639 | 6,531 | 3,314 | (5,124 | ) | 6,360 | ||||||||||||||
Property, plant and mine development, net |
| 6,351 | 10,690 | (22 | ) | 17,019 | ||||||||||||||
Investments |
| 21 | 1,233 | | 1,254 | |||||||||||||||
Investments in subsidiaries |
15,535 | 43 | 2,789 | (18,367 | ) | | ||||||||||||||
Stockpiles and ore on leach pads |
| 1,475 | 621 | | 2,096 | |||||||||||||||
Deferred income tax assets |
685 | 690 | 254 | | 1,629 | |||||||||||||||
Other long-term assets |
3,765 | 615 | 865 | (4,464 | ) | 781 | ||||||||||||||
Total assets |
$ | 21,624 | $ | 15,726 | $ | 19,766 | $ | (27,977 | ) | $ | 29,139 | |||||||||
Liabilities |
||||||||||||||||||||
Debt |
$ | 507 | $ | 61 | $ | 10 | $ | | $ | 578 | ||||||||||
Accounts payable |
3,024 | 1,257 | 1,375 | (5,114 | ) | 542 | ||||||||||||||
Employee-related benefits |
| 197 | 72 | | 269 | |||||||||||||||
Income and mining taxes |
8 | 131 | 242 | | 381 | |||||||||||||||
Other current liabilities |
436 | 399 | 3,842 | (1,972 | ) | 2,705 | ||||||||||||||
Current liabilities |
3,975 | 2,045 | 5,541 | (7,086 | ) | 4,475 | ||||||||||||||
Debt |
3,534 | 74 | 51 | | 3,659 | |||||||||||||||
Reclamation and remediation liabilities |
| 721 | 310 | | 1,031 | |||||||||||||||
Deferred income tax liabilities |
| 525 | 2,067 | | 2,592 | |||||||||||||||
Employee-related benefits |
5 | 256 | 89 | | 350 | |||||||||||||||
Other long-term liabilities |
563 | 60 | 4,192 | (4,487 | ) | 328 | ||||||||||||||
Total liabilities |
8,077 | 3,681 | 12,250 | (11,573 | ) | 12,435 | ||||||||||||||
Equity |
||||||||||||||||||||
Preferred stock |
| | 61 | (61 | ) | | ||||||||||||||
Common stock |
781 | | | | 781 | |||||||||||||||
Additional paid-in capital |
8,051 | 3,017 | 5,730 | (8,434 | ) | 8,364 | ||||||||||||||
Accumulated other comprehensive income |
462 | (121 | ) | 843 | (722 | ) | 462 | |||||||||||||
Retained earnings |
4,253 | 5,754 | (317 | ) | (5,437 | ) | 4,253 | |||||||||||||
Newmont stockholders equity |
13,547 | 8,650 | 6,317 | (14,654 | ) | 13,860 | ||||||||||||||
Noncontrolling interests |
| 3,395 | 1,199 | (1,750 | ) | 2,844 | ||||||||||||||
Total equity |
13,547 | 12,045 | 7,516 | (16,404 | ) | 16,704 | ||||||||||||||
Total liabilities and equity |
$ | 21,624 | $ | 15,726 | $ | 19,766 | $ | (27,977 | ) | $ | 29,139 | |||||||||
36
At December 31, 2010 | ||||||||||||||||||||
Newmont | ||||||||||||||||||||
Newmont | Mining | |||||||||||||||||||
Mining | Newmont | Other | Corporation | |||||||||||||||||
Condensed Consolidating Balance Sheet | Corporation | USA | Subsidiaries | Eliminations | Consolidated | |||||||||||||||
Assets |
||||||||||||||||||||
Cash and cash equivalents |
$ | | $ | 3,877 | $ | 179 | $ | | $ | 4,056 | ||||||||||
Trade receivables |
| 501 | 81 | | 582 | |||||||||||||||
Accounts receivable |
2,222 | 802 | 265 | (3,201 | ) | 88 | ||||||||||||||
Investments |
| 72 | 41 | | 113 | |||||||||||||||
Inventories |
| 388 | 270 | | 658 | |||||||||||||||
Stockpiles and ore on leach pads |
| 513 | 104 | | 617 | |||||||||||||||
Deferred income tax assets |
| 170 | 7 | | 177 | |||||||||||||||
Other current assets |
| 77 | 885 | | 962 | |||||||||||||||
Current assets |
2,222 | 6,400 | 1,832 | (3,201 | ) | 7,253 | ||||||||||||||
Property, plant and mine development, net |
| 5,364 | 7,562 | (19 | ) | 12,907 | ||||||||||||||
Investments |
| 25 | 1,543 | | 1,568 | |||||||||||||||
Investments in subsidiaries |
12,295 | 35 | 1,909 | (14,239 | ) | | ||||||||||||||
Stockpiles and ore on leach pads |
| 1,347 | 410 | | 1,757 | |||||||||||||||
Deferred income tax assets |
638 | 690 | 109 | | 1,437 | |||||||||||||||
Other long-term assets |
2,675 | 496 | 584 | (3,014 | ) | 741 | ||||||||||||||
Total assets |
$ | 17,830 | $ | 14,357 | $ | 13,949 | $ | (20,473 | ) | $ | 25,663 | |||||||||
Liabilities |
||||||||||||||||||||
Debt |
$ | | $ | 249 | $ | 10 | $ | | $ | 259 | ||||||||||
Accounts payable |
355 | 1,269 | 1,996 | (3,193 | ) | 427 | ||||||||||||||
Employee-related benefits |
| 222 | 66 | | 288 | |||||||||||||||
Income and mining taxes |
19 | 261 | 75 | | 355 | |||||||||||||||
Other current liabilities |
56 | 373 | 2,959 | (1,970 | ) | 1,418 | ||||||||||||||
Current liabilities |
430 | 2,374 | 5,106 | (5,163 | ) | 2,747 | ||||||||||||||
Debt |
3,991 | 135 | 56 | | 4,182 | |||||||||||||||
Reclamation and remediation liabilities |
| 676 | 308 | | 984 | |||||||||||||||
Deferred income tax liabilities |
| 513 | 975 | | 1,488 | |||||||||||||||
Employee-related benefits |
5 | 244 | 76 | | 325 | |||||||||||||||
Other long-term liabilities |
375 | 56 | 2,824 | (3,034 | ) | 221 | ||||||||||||||
Total liabilities |
4,801 | 3,998 | 9,345 | (8,197 | ) | 9,947 | ||||||||||||||
Equity |
||||||||||||||||||||
Preferred stock |
| | 61 | (61 | ) | | ||||||||||||||
Common stock |
778 | | | | 778 | |||||||||||||||
Additional paid-in capital |
7,963 | 2,722 | 3,894 | (6,300 | ) | 8,279 | ||||||||||||||
Accumulated other comprehensive income |
1,108 | (75 | ) | 1,180 | (1,105 | ) | 1,108 | |||||||||||||
Retained earnings |
3,180 | 4,850 | (1,109 | ) | (3,741 | ) | 3,180 | |||||||||||||
Newmont stockholders equity |
13,029 | 7,497 | 4,026 | (11,207 | ) | 13,345 | ||||||||||||||
Noncontrolling interests |
| 2,862 | 578 | (1,069 | ) | 2,371 | ||||||||||||||
Total equity |
13,029 | 10,359 | 4,604 | (12,276 | ) | 15,716 | ||||||||||||||
Total liabilities and equity |
$ | 17,830 | $ | 14,357 | $ | 13,949 | $ | (20,473 | ) | $ | 25,663 | |||||||||
37
38
39
40
41
42
43
44
ITEM | 2. MANAGEMENTS DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS AND FINANCIAL CONDITION (dollars in millions, except per share, per ounce and per pound amounts) |
| Record Sales of $2,744 and $7,593 for the third quarter and first nine months of 2011, respectively; |
| Record Net cash provided from continuing operations of $2,666 for the first nine months of 2011; |
| Record average realized gold price of $1,695 and $1,526 per ounce for the third quarter and first nine months of 2011, respectively; |
| Average realized copper price of $2.94 and $3.58 per pound for the third quarter and first nine months of 2011, respectively; |
| Attributable gold production of 1.3 million and 3.9 million ounces at consolidated Costs applicable to sales of $622 and $587 per ounce, for the third quarter and first nine months of 2011, respectively; |
| Attributable copper production of 58 million and 159 million pounds at consolidated Costs applicable to sales of $1.10 and $1.17 per pound, for the third quarter and first nine months of 2011, respectively; and |
| Maintaining 2011 Outlook for attributable gold and copper production, costs applicable to sales and capital expenditures. |
45
46
Average Realized | Quarterly Dividend | Annualized Dividend | ||||||||||||||
Gold Price | Prior | Enhanced | Prior | Enhanced | ||||||||||||
$1,100 - $1,199 |
$ | 0.100 | $ | 0.100 | $ | 0.400 | $ | 0.400 | ||||||||
$1,200 - $1,299 |
$ | 0.150 | $ | 0.150 | $ | 0.600 | $ | 0.600 | ||||||||
$1,300 - $1,399 |
$ | 0.200 | $ | 0.200 | $ | 0.800 | $ | 0.800 | ||||||||
$1,400 - $1,499 |
$ | 0.250 | $ | 0.250 | $ | 1.000 | $ | 1.000 | ||||||||
$1,500 - $1,599 |
$ | 0.300 | $ | 0.300 | $ | 1.200 | $ | 1.200 | ||||||||
$1,600 - $1,699 |
$ | 0.350 | $ | 0.350 | $ | 1.400 | $ | 1.400 | ||||||||
$1,700 - $1,799 |
$ | 0.400 | $ | 0.425 | $ | 1.600 | $ | 1.700 | ||||||||
$1,800 - $1,899 |
$ | 0.450 | $ | 0.500 | $ | 1.800 | $ | 2.000 | ||||||||
$1,900 - $1,999 |
$ | 0.500 | $ | 0.575 | $ | 2.000 | $ | 2.300 | ||||||||
$2,000 - $2,099 |
$ | 0.550 | $ | 0.675 | $ | 2.200 | $ | 2.700 | ||||||||
$2,100 - $2,199 |
$ | 0.600 | $ | 0.775 | $ | 2.400 | $ | 3.100 | ||||||||
$2,200 - $2,299 |
$ | 0.650 | $ | 0.875 | $ | 2.600 | $ | 3.500 | ||||||||
$2,300 - $2,399 |
$ | 0.700 | $ | 0.975 | $ | 2.800 | $ | 3.900 | ||||||||
$2,400 - $2,499 |
$ | 0.750 | $ | 1.075 | $ | 3.000 | $ | 4.300 | ||||||||
$2,500 - $2,599 |
$ | 0.800 | $ | 1.175 | $ | 3.200 | $ | 4.700 |
47
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
Sales |
$ | 2,744 | $ | 2,597 | $ | 7,593 | $ | 6,992 | ||||||||
Income from continuing operations |
$ | 675 | $ | 814 | $ | 2,005 | $ | 2,094 | ||||||||
Net income |
$ | 675 | $ | 814 | $ | 1,869 | $ | 2,094 | ||||||||
Net income attributable to Newmont
stockholders |
$ | 493 | $ | 537 | $ | 1,394 | $ | 1,465 | ||||||||
Per common share, basic: |
||||||||||||||||
Income from continuing operations
attributable to
Newmont stockholders |
$ | 1.00 | $ | 1.09 | $ | 3.10 | $ | 2.98 | ||||||||
Net income attributable to Newmont
stockholders |
$ | 1.00 | $ | 1.09 | $ | 2.82 | $ | 2.98 | ||||||||
Adjusted net income (1) |
$ | 635 | $ | 533 | $ | 1,593 | $ | 1,319 | ||||||||
Adjusted net income per share (1) |
$ | 1.29 | $ | 1.08 | $ | 3.23 | $ | 2.68 | ||||||||
Consolidated gold ounces (thousands) |
||||||||||||||||
Produced (2) |
1,519 | 1,689 | 4,433 | 4,862 | ||||||||||||
Sold |
1,458 | 1,651 | 4,327 | 4,778 | ||||||||||||
Consolidated copper pounds (millions) |
||||||||||||||||
Produced (3) |
102 | 156 | 278 | 463 | ||||||||||||
Sold |
92 | 158 | 276 | 434 | ||||||||||||
Average price received, net: |
||||||||||||||||
Gold (per ounce) |
$ | 1,695 | $ | 1,221 | $ | 1,526 | $ | 1,176 | ||||||||
Copper (per pound) |
$ | 2.94 | $ | 3.67 | $ | 3.58 | $ | 3.17 | ||||||||
Costs applicable to sales: |
||||||||||||||||
Gold (per ounce) |
$ | 622 | $ | 470 | $ | 587 | $ | 477 | ||||||||
Copper (per pound) |
$ | 1.10 | $ | 0.73 | $ | 1.17 | $ | 0.76 |
(1) | See Non-GAAP Financial Measures on page 64. | |
(2) | Contained basis. (Attributable production after smelter recoveries was 1,306 and 1,403 thousand gold ounces for the third quarter 2011 and 2010, respectively. Attributable production after smelter recoveries was 3,867 and 4,022 thousand gold ounces for the first nine months 2011 and 2010, respectively.) | |
(3) | Contained basis. (Attributable production after smelter recoveries was 55 and 80 million copper pounds for the third quarter 2011 and 2010, respectively. Attributable production after smelter recoveries was 152 and 243 million copper pounds for the first nine months 2011 and 2010, respectively.) |
48
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
Consolidated gold sales: |
||||||||||||||||
Gross before provisional pricing |
$ | 2,468 | $ | 2,028 | $ | 6,607 | $ | 5,632 | ||||||||
Provisional pricing mark-to-market |
20 | 5 | 38 | 27 | ||||||||||||
Gross after provisional pricing |
2,488 | 2,033 | 6,645 | 5,659 | ||||||||||||
Treatment and refining charges |
(17 | ) | (17 | ) | (43 | ) | (40 | ) | ||||||||
Net |
$ | 2,471 | $ | 2,016 | $ | 6,602 | $ | 5,619 | ||||||||
Consolidated gold ounces sold (thousands): |
1,458 | 1,651 | 4,327 | 4,778 | ||||||||||||
Average realized gold price (per ounce): |
||||||||||||||||
Gross before provisional pricing |
$ | 1,693 | $ | 1,229 | $ | 1,527 | $ | 1,179 | ||||||||
Provisional pricing mark-to-market |
14 | 3 | 9 | 6 | ||||||||||||
Gross after provisional pricing |
1,707 | 1,232 | 1,536 | 1,185 | ||||||||||||
Treatment and refining charges |
(12 | ) | (11 | ) | (10 | ) | (9 | ) | ||||||||
Net |
$ | 1,695 | $ | 1,221 | $ | 1,526 | $ | 1,176 | ||||||||
Three Months Ended | Nine Months Ended | |||||||
September 30, | September 30, | |||||||
2011 vs. 2010 | 2011 vs. 2010 | |||||||
Change in consolidated ounces sold |
$ | (237 | ) | $ | (533 | ) | ||
Change in average realized gold price |
692 | 1,519 | ||||||
Change in treatment and refining charges |
| (3 | ) | |||||
$ | 455 | $ | 983 | |||||
49
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
Consolidated copper sales: |
||||||||||||||||
Gross before provisional pricing |
$ | 363 | $ | 539 | $ | 1,154 | $ | 1,433 | ||||||||
Provisional pricing mark-to-market |
(74 | ) | 78 | (102 | ) | 30 | ||||||||||
Gross after provisional pricing |
289 | 617 | 1,052 | 1,463 | ||||||||||||
Treatment and refining charges |
(16 | ) | (36 | ) | (61 | ) | (90 | ) | ||||||||
Net |
$ | 273 | $ | 581 | $ | 991 | $ | 1,373 | ||||||||
Consolidated copper pounds sold (millions) |
92 | 158 | 276 | 434 | ||||||||||||
Average realized copper price (per pound): |
||||||||||||||||
Gross before provisional pricing |
$ | 3.91 | $ | 3.41 | $ | 4.17 | $ | 3.31 | ||||||||
Provisional pricing mark-to-market |
(0.80 | ) | 0.49 | (0.37 | ) | 0.07 | ||||||||||
Gross after provisional pricing |
3.11 | 3.90 | 3.80 | 3.38 | ||||||||||||
Treatment and refining charges |
(0.17 | ) | (0.23 | ) | (0.22 | ) | (0.21 | ) | ||||||||
Net |
$ | 2.94 | $ | 3.67 | $ | 3.58 | $ | 3.17 | ||||||||
Three Months Ended | Nine Months Ended | |||||||
September 30, | September 30, | |||||||
2011 vs. 2010 | 2011 vs. 2010 | |||||||
Change in consolidated pounds sold |
$ | (254 | ) | $ | (528 | ) | ||
Change in average realized copper price |
(74 | ) | 117 | |||||
Change in treatment and refining charges |
20 | 29 | ||||||
$ | (308 | ) | $ | (382 | ) | |||
50
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
Gold |
||||||||||||||||
North America: |
||||||||||||||||
Nevada |
$ | 712 | $ | 568 | $ | 1,823 | $ | 1,540 | ||||||||
La Herradura |
92 | 52 | 238 | 149 | ||||||||||||
804 | 620 | 2,061 | 1,689 | |||||||||||||
South America: |
||||||||||||||||
Yanacocha |
544 | 436 | 1,430 | 1,321 | ||||||||||||
Asia Pacific: |
||||||||||||||||
Boddington |
245 | 181 | 746 | 582 | ||||||||||||
Batu Hijau |
198 | 260 | 430 | 595 | ||||||||||||
Other Australia/New Zealand |
437 | 351 | 1,227 | 973 | ||||||||||||
880 | 792 | 2,403 | 2,150 | |||||||||||||
Africa: |
||||||||||||||||
Ahafo |
243 | 168 | 708 | 459 | ||||||||||||
2,471 | 2,016 | 6,602 | 5,619 | |||||||||||||
Copper |
||||||||||||||||
Asia Pacific: |
||||||||||||||||
Batu Hijau |
233 | 543 | 844 | 1,256 | ||||||||||||
Boddington |
40 | 38 | 147 | 117 | ||||||||||||
273 | 581 | 991 | 1,373 | |||||||||||||
$ | 2,744 | $ | 2,597 | $ | 7,593 | $ | 6,992 | |||||||||
51
Costs Applicable | Costs Applicable | |||||||||||||||||||||||||||||||
to Sales | Amortization | to Sales | Amortization | |||||||||||||||||||||||||||||
Three Months Ended | Three Months Ended | Nine Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||
September 30, | September 30, | September 30, | September 30, | |||||||||||||||||||||||||||||
2011 | 2010 | 2011 | 2010 | 2011 | 2010 | 2011 | 2010 | |||||||||||||||||||||||||
Gold |
||||||||||||||||||||||||||||||||
North America: |
||||||||||||||||||||||||||||||||
Nevada |
$ | 267 | $ | 259 | $ | 69 | $ | 68 | $ | 763 | $ | 756 | $ | 197 | $ | 194 | ||||||||||||||||
La Herradura |
31 | 20 | 6 | 5 | 76 | 52 | 15 | 13 | ||||||||||||||||||||||||
298 | 279 | 75 | 73 | 839 | 808 | 212 | 207 | |||||||||||||||||||||||||
South America: |
||||||||||||||||||||||||||||||||
Yanacocha |
194 | 149 | 67 | 42 | 537 | 442 | 186 | 119 | ||||||||||||||||||||||||
Asia Pacific: |
||||||||||||||||||||||||||||||||
Boddington |
112 | 91 | 28 | 25 | 329 | 284 | 87 | 81 | ||||||||||||||||||||||||
Batu Hijau |
58 | 47 | 14 | 12 | 122 | 123 | 28 | 34 | ||||||||||||||||||||||||
Other Australia/New
Zealand |
174 | 153 | 36 | 26 | 498 | 446 | 102 | 82 | ||||||||||||||||||||||||
344 | 291 | 78 | 63 | 949 | 853 | 217 | 197 | |||||||||||||||||||||||||
Africa: |
||||||||||||||||||||||||||||||||
Ahafo |
71 | 57 | 19 | 22 | 216 | 176 | 61 | 58 | ||||||||||||||||||||||||
907 | 776 | 239 | 200 | 2,541 | 2,279 | 676 | 581 | |||||||||||||||||||||||||
Copper |
||||||||||||||||||||||||||||||||
Asia Pacific: |
||||||||||||||||||||||||||||||||
Batu Hijau |
73 | 96 | 16 | 26 | 241 | 261 | 54 | 72 | ||||||||||||||||||||||||
Boddington |
28 | 19 | 6 | 5 | 83 | 68 | 20 | 18 | ||||||||||||||||||||||||
101 | 115 | 22 | 31 | 324 | 329 | 74 | 90 | |||||||||||||||||||||||||
Other |
||||||||||||||||||||||||||||||||
Hope Bay |
| | 3 | 4 | | | 10 | 10 | ||||||||||||||||||||||||
Asia Pacific |
| | 1 | 1 | | | 2 | 2 | ||||||||||||||||||||||||
Corporate and other |
| | 5 | 6 | | | 14 | 14 | ||||||||||||||||||||||||
| | 9 | 11 | | | 26 | 26 | |||||||||||||||||||||||||
$ | 1,008 | $ | 891 | $ | 270 | $ | 242 | $ | 2,865 | $ | 2,608 | $ | 776 | $ | 697 | |||||||||||||||||
52
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
Hope Bay |
$ | 36 | $ | 13 | $ | 115 | $ | 48 | ||||||||
Conga |
9 | 2 | 15 | 5 | ||||||||||||
Akyem |
2 | | 3 | 4 | ||||||||||||
Technical and project services |
20 | 12 | 53 | 35 | ||||||||||||
Corporate |
7 | 4 | 16 | 25 | ||||||||||||
Other |
19 | 15 | 45 | 32 | ||||||||||||
$ | 93 | $ | 46 | $ | 247 | $ | 149 | |||||||||
53
Gold or Copper Produced(1) | Costs Applicable to Sales(2) | Amortization | ||||||||||||||||||||||
Three Months Ended September 30, | 2011 | 2010 | 2011 | 2010 | 2011 | 2010 | ||||||||||||||||||
Gold | (ounces in thousands) |
($ per ounce) |
($ per ounce) |
|||||||||||||||||||||
North America |
482 | 495 | $ | 633 | $ | 549 | $ | 158 | $ | 144 | ||||||||||||||
South America |
328 | 355 | 610 | 420 | 211 | 118 | ||||||||||||||||||
Asia Pacific |
563 | 683 | 652 | 445 | 146 | 96 | ||||||||||||||||||
Africa |
146 | 156 | 501 | 422 | 140 | 160 | ||||||||||||||||||
Total/Weighted-Average |
1,519 | 1,689 | $ | 622 | $ | 470 | $ | 164 | $ | 121 | ||||||||||||||
Attributable to Newmont(3)(4) |
1,311 | 1,408 | $ | 628 | $ | 496 | ||||||||||||||||||
Net Attributable to Newmont(4) |
$ | 556 | $ | 323 | ||||||||||||||||||||
Copper | (pounds in millions) | ($ per pound) |
($ per pound) |
|||||||||||||||||||||
Asia Pacific |
102 | 156 | $ | 1.10 | $ | 0.73 | $ | 0.24 | $ | 0.20 | ||||||||||||||
Attributable to Newmont(4) |
58 | 83 | $ | 1.25 | $ | 0.79 | ||||||||||||||||||
Gold or Copper Produced(1) | Costs Applicable to Sales(2) | Amortization | ||||||||||||||||||||||
Nine Months Ended September 30, | 2011 | 2010 | 2011 | 2010 | 2011 | 2010 | ||||||||||||||||||
Gold | (ounces in thousands) | ($ per ounce) | ($ per ounce) | |||||||||||||||||||||
North America |
1,374 | 1,431 | $ | 624 | $ | 565 | $ | 157 | $ | 145 | ||||||||||||||
South America |
958 | 1,131 | 578 | 392 | 200 | 106 | ||||||||||||||||||
Asia Pacific |
1,623 | 1,892 | 597 | 464 | 136 | 107 | ||||||||||||||||||
Africa |
478 | 408 | 465 | 456 | 133 | 151 | ||||||||||||||||||
Total/Weighted-Average |
4,433 | 4,862 | $ | 587 | $ | 477 | $ | 156 | $ | 122 | ||||||||||||||
Attributable to Newmont(4)(5) |
3,881 | 4,038 | $ | 593 | $ | 503 | ||||||||||||||||||
Net Attributable to Newmont(4) |
$ | 497 | $ | 366 | ||||||||||||||||||||
Copper | (pounds in millions) | ($ per pound) | ($ per pound) | |||||||||||||||||||||
Asia Pacific |
278 | 463 | $ | 1.17 | $ | 0.76 | $ | 0.27 | $ | 0.21 | ||||||||||||||
Attributable to Newmont(4) |
159 | 253 | $ | 1.30 | $ | 0.84 | ||||||||||||||||||
(1) | Contained basis (Attributable production after smelter recoveries was 1,306 and 1,403 thousand gold ounces and 55 and 80 million copper pounds for third quarter 2011 and 2010, respectively. Attributable production after smelter recoveries was 3,867 and 4,022 thousand gold ounces and 152 and 243 million copper pounds for first nine months 2011 and 2010, respectively.) |
54
(2) | Excludes Amortization and Reclamation and remediation. | |
(3) | Includes 19 and 5 thousand ounces in 2011 and 2010, respectively from our non-consolidated interest in La Zanja and 4 thousand ounces in 2011 from our non-consolidated interests in Duketon. | |
(4) | See Non-GAAP Financial Measures on page 64. | |
(5) | Includes 49 and 5 thousand ounces in 2011 and 2010, respectively from our non-consolidated interest in La Zanja and 12 thousand ounces in 2011 from our non-consolidated interests in Duketon. |
55
Gold Ounces Produced | Costs Applicable to Sales(1) | Amortization | ||||||||||||||||||||||
Three Months Ended September 30, | 2011 | 2010 | 2011 | 2010 | 2011 | 2010 | ||||||||||||||||||
(in thousands) | ($ per ounce) | ($ per ounce) | ||||||||||||||||||||||
Nevada |
428 | 453 | $ | 641 | $ | 556 | $ | 166 | $ | 146 | ||||||||||||||
La Herradura(2) |
54 | 42 | 575 | 464 | 95 | 115 | ||||||||||||||||||
Total/Weighted-Average |
482 | 495 | $ | 633 | $ | 549 | $ | 158 | $ | 144 | ||||||||||||||
Attributable to Newmont |
482 | 495 | ||||||||||||||||||||||
Gold Ounces Produced | Costs Applicable to Sales(1) | Amortization | ||||||||||||||||||||||
Nine Months Ended September 30, | 2011 | 2010 | 2011 | 2010 | 2011 | 2010 | ||||||||||||||||||
(in thousands) | ($ per ounce) | ($ per ounce) | ||||||||||||||||||||||
Nevada |
1,218 | 1,306 | $ | 640 | $ | 579 | $ | 165 | $ | 149 | ||||||||||||||
La Herradura(2) |
156 | 125 | 498 | 415 | 95 | 106 | ||||||||||||||||||
Total/Weighted-Average |
1,374 | 1,431 | $ | 624 | $ | 565 | $ | 157 | $ | 145 | ||||||||||||||
Attributable to Newmont |
1,374 | 1,431 | ||||||||||||||||||||||
(1) | Excludes Amortization and Reclamation and remediation. | |
(2) | Our proportionately consolidated 44%. |
56
Gold Ounces Produced | Costs Applicable to Sales(1) | Amortization | ||||||||||||||||||||||
Three Months Ended September 30, | 2011 | 2010 | 2011 | 2010 | 2011 | 2010 | ||||||||||||||||||
(in thousands) | ($ per ounce) | ($ per ounce) | ||||||||||||||||||||||
Yanacocha (51.35% owned) |
328 | 355 | $ | 610 | $ | 420 | $ | 211 | $ | 118 | ||||||||||||||
Attributable to Newmont(2) |
188 | 187 | ||||||||||||||||||||||
Gold Ounces Produced | Costs Applicable to Sales(1) | Amortization | ||||||||||||||||||||||
Nine Months Ended September 30, | 2011 | 2010 | 2011 | 2010 | 2011 | 2010 | ||||||||||||||||||
(in thousands) | ($ per ounce) | ($ per ounce) | ||||||||||||||||||||||
Yanacocha (51.35% owned) |
958 | 1,131 | $ | 578 | $ | 392 | $ | 200 | $ | 106 | ||||||||||||||
Attributable to Newmont(2) |
541 | 585 | ||||||||||||||||||||||
(1) | Excludes Amortization and Reclamation and remediation. | |
(2) | Includes 19 and 49 thousand ounces in the third quarter and first nine months of 2011, respectively, and 5 thousand ounces in the third quarter and first nine months of 2010, respectively, from our 46.94% non-consolidated interest in La Zanja. |
57
Gold or Copper | ||||||||||||||||||||||||
Produced(1) | Costs Applicable to Sales(2) | Amortization | ||||||||||||||||||||||
Three Months Ended September 30, | 2011 | 2010 | 2011 | 2010 | 2011 | 2010 | ||||||||||||||||||
Gold | (ounces in thousands) | ($ per ounce) | ($ per ounce) | |||||||||||||||||||||
Boddington |
166 | 180 | $ | 743 | $ | 617 | $ | 182 | $ | 166 | ||||||||||||||
Batu Hijau (3) |
138 | 219 | 476 | 211 | 108 | 56 | ||||||||||||||||||
Other Australia/New Zealand |
259 | 284 | 684 | 539 | 144 | 91 | ||||||||||||||||||
Total/Weighted-Average |
563 | 683 | $ | 652 | $ | 445 | $ | 146 | $ | 96 | ||||||||||||||
Attributable to Newmont(4) |
495 | 570 | ||||||||||||||||||||||
Copper | (pounds in millions) | ($ per pound) | ($ per pound) | |||||||||||||||||||||
Boddington |
17 | 14 | $ | 2.25 | $ | 1.81 | $ | 0.47 | $ | 0.52 | ||||||||||||||
Batu Hijau(3) |
85 | 142 | 0.90 | 0.65 | 0.20 | 0.18 | ||||||||||||||||||
Total/Weighted-Average |
102 | 156 | $ | 1.10 | $ | 0.73 | $ | 0.24 | $ | 0.20 | ||||||||||||||
Attributable to Newmont |
58 | 83 | ||||||||||||||||||||||
Gold or Copper | ||||||||||||||||||||||||
Produced(1) | Costs Applicable to Sales(2) | Amortization | ||||||||||||||||||||||
Nine Months Ended September 30, | 2011 | 2010 | 2011 | 2010 | 2011 | 2010 | ||||||||||||||||||
Gold | (ounces in thousands) | ($ per ounce) | ($ per ounce) | |||||||||||||||||||||
Boddington |
536 | 522 | $ | 657 | $ | 577 | $ | 173 | $ | 164 | ||||||||||||||
Batu Hijau (3) |
285 | 554 | 423 | 235 | 95 | 65 | ||||||||||||||||||
Other Australia/New Zealand |
802 | 816 | 623 | 543 | 128 | 100 | ||||||||||||||||||
Total/Weighted-Average |
1,623 | 1,892 | $ | 597 | $ | 464 | $ | 136 | $ | 107 | ||||||||||||||
Attributable to Newmont(4) |
1,488 | 1,614 | ||||||||||||||||||||||
Copper | (pounds in millions) | ($ per pound) | ($ per pound) | |||||||||||||||||||||
Boddington
|
47 | 43 | $ | 2.12 | $ | 1.80 | $ | 0.51 | $ | 0.48 | ||||||||||||||
Batu Hijau(3)
|
231 | 420 | 1.01 | 0.66 | 0.23 | 0.18 | ||||||||||||||||||
Total/Weighted-Average
|
278 | 463 | $ | 1.17 | $ | 0.76 | $ | 0.27 | $ | 0.21 | ||||||||||||||
Attributable to Newmont
|
159 | 253 | ||||||||||||||||||||||
(1) | Contained basis. (Attributable production after smelter recoveries was 490 and 565 thousand gold ounces and 55 and 80 million copper pounds for third quarter 2011 and 2010, respectively. Attributable production after smelter recoveries was 1,474 and 1,598 thousand gold ounces and 152 and 243 million copper pounds for first nine months 2011 and 2010, respectively.) | |
(2) | Excludes Amortization and Reclamation and remediation. | |
(3) | Our economic interest in Batu Hijau was 48.5% for all periods presented except the first nine months of 2010 during when our interest was 49.86%. | |
(4) | Includes 4 and 12 thousand ounces in the third quarter and first nine months of 2011, respectively, from our 16.17% non-consolidated interest in Duketon. |
58
59
Gold Ounces Produced | Costs Applicable to Sales(1) | Amortization | ||||||||||||||||||||||
Three Months Ended September 30, | 2011 | 2010 | 2011 | 2010 | 2011 | 2010 | ||||||||||||||||||
(in thousands) | ($ per ounce) | ($ per ounce) | ||||||||||||||||||||||
Ahafo |
146 | 156 | $ | 501 | $ | 422 | $ | 140 | $ | 160 | ||||||||||||||
Attributable to Newmont |
146 | 156 | ||||||||||||||||||||||
Gold Ounces Produced | Costs Applicable to Sales(1) | Amortization | ||||||||||||||||||||||
Nine Months Ended September 30, | 2011 | 2010 | 2011 | 2010 | 2011 | 2010 | ||||||||||||||||||
(in thousands) | ($ per ounce) | ($ per ounce) | ||||||||||||||||||||||
Ahafo |
478 | 408 | $ | 465 | $ | 456 | $ | 133 | $ | 151 | ||||||||||||||
Attributable to Newmont |
478 | 408 | ||||||||||||||||||||||
(1) | Excludes Amortization and Reclamation and remediation. |
60
Nine Months Ended September 30, | ||||||||
2011 | 2010 | |||||||
North America: |
||||||||
Nevada |
$ | 380 | $ | 200 | ||||
Hope Bay |
74 | 88 | ||||||
La Herradura |
55 | 33 | ||||||
509 | 321 | |||||||
South America: |
||||||||
Yanacocha |
244 | 109 | ||||||
Conga |
448 | 86 | ||||||
692 | 195 | |||||||
Asia Pacific: |
||||||||
Boddington |
122 | 106 | ||||||
Batu Hijau |
149 | 48 | ||||||
Other Australia/New Zealand |
212 | 111 | ||||||
Other Asia Pacific |
8 | 11 | ||||||
491 | 276 | |||||||
Africa: |
||||||||
Ahafo |
71 | 80 | ||||||
Akyem |
127 | 49 | ||||||
198 | 129 | |||||||
Corporate and Other |
23 | 23 | ||||||
Accrual basis |
1,913 | 944 | ||||||
Decrease (increase) in accrued capital expenditures |
(132 | ) | 28 | |||||
Cash basis |
$ | 1,781 | $ | 972 | ||||
61
62
2011 | 2012 | 2013 | 2014 | 2015 | Thereafter | |||||||||||||||||||
Batu Hijau |
96 | 359 | 344 | 518 | | | ||||||||||||||||||
Boddington |
77 | 259 | 243 | 254 | 231 | 672 | ||||||||||||||||||
Nevada |
61 | 75 | | | | | ||||||||||||||||||
234 | 693 | 587 | 772 | 231 | 672 | |||||||||||||||||||
63
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
Net income attributable to Newmont stockholders |
$ | 493 | $ | 537 | $ | 1,394 | $ | 1,465 | ||||||||
Impairments/asset sales, net |
142 | (4 | ) | 110 | (32 | ) | ||||||||||
Loss from discontinued operations |
| | 136 | | ||||||||||||
Fronteer acquisition costs |
| | 18 | | ||||||||||||
PTNNT community contribution |
| | | 13 | ||||||||||||
Income tax benefit from internal restructuring |
| | (65 | ) | (127 | ) | ||||||||||
Adjusted net income |
$ | 635 | $ | 533 | $ | 1,593 | $ | 1,319 | ||||||||
Adjusted net income per share(1) |
$ | 1.29 | $ | 1.08 | $ | 3.23 | $ | 2.68 |
(1) | Calculated using weighted average number of shares outstanding, basic. |
64
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
Costs applicable to sales: |
||||||||||||||||
Consolidated per financial statements |
$ | 907 | $ | 776 | $ | 2,541 | $ | 2,279 | ||||||||
Noncontrolling interests(1) |
(128 | ) | (99 | ) | (333 | ) | (285 | ) | ||||||||
Attributable to Newmont |
$ | 779 | $ | 677 | $ | 2,208 | $ | 1,994 | ||||||||
Gold sold (thousand ounces): |
||||||||||||||||
Consolidated |
1,458 | 1,651 | 4,327 | 4,778 | ||||||||||||
Noncontrolling interests(1) |
(218 | ) | (287 | ) | (601 | ) | (811 | ) | ||||||||
Attributable to Newmont |
1,240 | 1,364 | 3,726 | 3,967 | ||||||||||||
Costs applicable to sales per ounce: |
||||||||||||||||
Consolidated |
$ | 622 | $ | 470 | $ | 587 | $ | 477 | ||||||||
Attributable to Newmont |
$ | 628 | $ | 496 | $ | 593 | $ | 503 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
Costs applicable to sales: |
||||||||||||||||
Consolidated per financial statements |
$ | 101 | $ | 115 | $ | 324 | $ | 329 | ||||||||
Noncontrolling interests(1) |
(37 | ) | (50 | ) | (124 | ) | (131 | ) | ||||||||
Attributable to Newmont |
$ | 64 | $ | 65 | $ | 200 | $ | 198 | ||||||||
Copper sold (million pounds): |
||||||||||||||||
Consolidated |
92 | 158 | 276 | 434 | ||||||||||||
Noncontrolling interests(1) |
(41 | ) | (76 | ) | (122 | ) | (198 | ) | ||||||||
Attributable to Newmont |
51 | 82 | 154 | 236 | ||||||||||||
Costs applicable to sales per pound: |
||||||||||||||||
Consolidated |
$ | 1.10 | $ | 0.73 | $ | 1.17 | $ | 0.76 | ||||||||
Attributable to Newmont |
$ | 1.25 | $ | 0.79 | $ | 1.30 | $ | 0.84 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
Attributable costs applicable to sales: |
||||||||||||||||
Gold |
$ | 779 | $ | 677 | $ | 2,208 | $ | 1,994 | ||||||||
Copper |
64 | 65 | 200 | 198 | ||||||||||||
843 | 742 | 2,408 | 2,192 | |||||||||||||
Copper revenue: |
||||||||||||||||
Consolidated |
(273 | ) | (581 | ) | (991 | ) | (1,373 | ) | ||||||||
Noncontrolling interests(1) |
119 | 279 | 434 | 631 | ||||||||||||
(154 | ) | (302 | ) | (557 | ) | (742 | ) | |||||||||
Net attributable costs applicable to sales |
$ | 689 | $ | 440 | $ | 1,851 | $ | 1,450 | ||||||||
Attributable gold ounces sold (thousands) |
1,240 | 1,364 | 3,726 | 3,967 | ||||||||||||
Net attributable costs applicable to sales per ounce |
$ | 556 | $ | 323 | $ | 497 | $ | 366 |
(1) | Relates to partners interests in Batu Hijau and Yanacocha |
65
66
ITEM 3. | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK (dollars in millions, except per ounce and per pound amounts). |
67
Expected Maturity Date | ||||||||||||||||||||||||||||
Total | ||||||||||||||||||||||||||||
2011 | 2012 | 2013 | 2014 | 2015 | 2016 | Average | ||||||||||||||||||||||
A$ Operating Fixed Forward Contracts: |
||||||||||||||||||||||||||||
A$ notional (millions) |
315 | 1,114 | 863 | 576 | 292 | 63 | 3,223 | |||||||||||||||||||||
Average rate ($/A$) |
0.87 | 0.90 | 0.91 | 0.89 | 0.86 | 0.90 | 0.90 | |||||||||||||||||||||
Expected hedge ratio |
84 | % | 70 | % | 53 | % | 37 | % | 19 | % | 6 | % | ||||||||||||||||
A$ Capital Fixed Forward Contracts: |
||||||||||||||||||||||||||||
A$ notional (millions) |
11 | 57 | 51 | 22 | | | 141 | |||||||||||||||||||||
Average rate ($/A$) |
1.03 | 1.01 | 0.98 | 0.96 | | | 0.99 | |||||||||||||||||||||
Expected hedge ratio |
55 | % | 41 | % | 28 | % | 23 | % | | | ||||||||||||||||||
NZ$ Operating Fixed Forward Contracts: |
||||||||||||||||||||||||||||
NZ$ notional (millions) |
20 | 53 | 15 | | | | 88 | |||||||||||||||||||||
Average rate ($/NZ$) |
0.73 | 0.75 | 0.78 | | | | 0.75 | |||||||||||||||||||||
Expected hedge ratio |
64 | % | 41 | % | 15 | % | | | |
Expected Maturity Date | ||||||||||||||||
2011 | 2012 | 2013 | Total Average | |||||||||||||
Diesel Fixed Forward Contracts: |
||||||||||||||||
Diesel gallons (millions) |
6 | 18 | 4 | 28 | ||||||||||||
Average rate ($/gallon) |
2.61 | 2.77 | 2.96 | 2.76 | ||||||||||||
Expected hedge ratio |
58 | % | 39 | % | 10 | % |
68
ITEM 4. | CONTROLS AND PROCEDURES. |
69
ITEM 1. | LEGAL PROCEEDINGS. |
ITEM 1A. | RISK FACTORS. |
ITEM 2. | ISSUER PURCHASES OF EQUITY SECURITIES. |
(c) | (d) | |||||||||||||||
(a) | (b) | Total Number of | Maximum Number (or | |||||||||||||
Total | Average | Shares Purchased | Approximate Dollar Value) | |||||||||||||
Number of | Price | as Part of Publicly | of Shares that may yet be | |||||||||||||
Shares | Paid Per | Announced Plans | Purchased under the | |||||||||||||
Period | Purchased | Share | or Programs | Plans or Programs | ||||||||||||
July 1, 2011 through July 31, 2011 |
| | | N/A | ||||||||||||
August 1, 2011 through August 31, 2011 |
| | | N/A | ||||||||||||
September 1, 2011 through September 30, 2011 |
| | | N/A |
ITEM 3. | DEFAULTS UPON SENIOR SECURITIES. |
ITEM 5. | OTHER INFORMATION. |
70
Salary Grade | Benefit | |||||
CEO
|
E1 | 24 months of Salary | ||||
EVP
|
E2 E3 |
15 months of Salary + 1 month of Salary for every year of Service up to a maximum of 18 months of Salary | ||||
SVP
|
E4 | 12 months of Salary + 1 month of Salary for every year of Service up to a maximum of 15 months of Salary | ||||
VP
|
E5 | 12 months of Salary | ||||
Group Executive
|
E6 | 9 months of Salary + 1 month of Salary for every year of Service up to a maximum of 12 months of Salary | ||||
Senior Director
|
109 | 6 months of Salary + 1 month of Salary for every year of Service up to a maximum of 9 months of Salary |
ITEM 6. | EXHIBITS. |
71
Newmont Mining Corporation (Registrant) |
||||
Date: October 27, 2011 | /s/ RUSSELL BALL | |||
Russell Ball | ||||
Executive Vice President and Chief Financial Officer (Principal Financial Officer) |
Date: October 27, 2011 | /s/ DAVID OTTEWELL | |||
David Ottewell | ||||
Vice President and Controller (Principal Accounting Officer) |
72
Exhibit | ||||
Number | Description | |||
10.1 | Executive Severance Plan of Newmont, Effective October 26, 2011, filed herewith. |
|||
12.1 | Computation
of Ratio of Earnings to Fixed Charges, filed herewith |
|||
31.1 | Certification Pursuant to Rule 13A-14 or 15-D-14 of the Securities Exchange Act
of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
signed by the Principal Executive Officer, filed herewith. |
|||
31.2 | Certification Pursuant to Rule 13A-14 or 15-D-14 of the Securities Exchange Act
of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
signed by the Chief Financial Officer, filed herewith. |
|||
32.1 | Statement Required by 18 U.S.C. Section 1350, as Adopted Pursuant to Section
906 of the Sarbanes-Oxley Act of 2002 signed by Principal Executive Officer,
filed herewith.(1) |
|||
32.2 | Statement Required by 18 U.S.C. Section 1350, as Adopted Pursuant to Section
906 of the Sarbanes-Oxley Act of 2002 signed by Chief Financial Officer, filed
herewith.(1) |
|||
99.1 | Information concerning mine safety violations or other regulatory matters
required by Section 1503(a) of the Dodd-Frank Wall Street Reform and Consumer
Protection Act, filed herewith. |
|||
101 | 101.INS XBRL Instance |
|||
101.SCH XBRL Taxonomy Extension Schema |
||||
101.CAL XBRL Taxonomy Extension Calculation |
||||
101.LAB XBRL Taxonomy Extension Labels |
||||
101.PRE XBRL Taxonomy Extension Presentation |
||||
101.DEF XBRL Taxonomy Extension Definition |
(1) | This document is being furnished in accordance with SEC Release Nos. 33-8212 and
34-47551. |
Page | ||||
ARTICLE I |
||||
DEFINITIONS |
1 | |||
ARTICLE II ELIGIBILITY |
||||
Section 2.01. General Eligibility Requirements |
3 | |||
ARTICLE III BENEFITS |
||||
Section 3.01. Basic Severance Benefits |
4 | |||
Section 3.02. Coordination With Certain Change in Control Programs |
4 | |||
Section 3.03. Payment of Severance Benefits |
4 | |||
Section 3.04. Other Benefits |
5 | |||
Section 3.05. Return of Benefits in the Event of Cause |
5 | |||
ARTICLE IV |
||||
CONTINUATION OF HEALTH CARE COVERAGE |
6 | |||
ARTICLE V |
||||
PROTECTION OF MEDICAL PRIVACY |
6 | |||
ARTICLE VI ADMINISTRATION COMMITTEE AND CLAIMS FOR BENEFITS |
||||
Section 6.01. Appointment of the Administration Committee |
6 | |||
Section 6.02. Responsibilities of the Administration Committee |
6 | |||
Section 6.03. Organization of the Administration Committee |
6 | |||
Section 6.04. Indemnification of Administration Committee Members |
7 | |||
Section 6.05. Benefits Claims and Appeals |
7 | |||
ARTICLE VII MISCELLANEOUS |
||||
Section 7.01. Plan Documentation |
7 | |||
Section 7.02. Funding of Severance Benefits |
7 | |||
Section 7.03. Amount Payable Upon Death of Eligible Participant |
7 | |||
Section 7.04. Confidential Information |
8 | |||
Section 7.05. Release |
8 |
i
Page | ||||
Section 7.06. Employment Status |
8 | |||
Section 7.07. Validity and Severability |
8 | |||
Section 7.08. Governing Law |
8 | |||
Section 7.09. Right of Offset |
8 | |||
Section 7.10. Conformance With Applicable Laws |
9 | |||
Section 7.11. Payments Due Minors or Incapacitated Persons |
9 | |||
ARTICLE VIII DURATION, AMENDMENT AND TERMINATION |
||||
Section 8.01. Duration |
9 | |||
Section 8.02. Amendment or Termination |
9 |
ii
2
3
Salary Grade | Benefit | |||||
CEO
|
E1 | 24 months of Salary | ||||
EVP
|
E2 E3 |
15 months of Salary + 1 month of Salary for every year of Service up to a maximum total of 18 months of Salary | ||||
SVP
|
E4 | 12 months of Salary + 1 month of Salary for every year of Service up to a maximum total of 15 months of Salary | ||||
VP
|
E5 | 12 months of Salary | ||||
Group Executive
|
E6 | 9 months of Salary + 1 month of Salary for every year of Service up to a maximum total of 12 months of Salary | ||||
Senior Director
|
109 | 6 months of Salary + 1 month of Salary for every year of Service up to a maximum total of 9 months of Salary |
4
5
6
7
8
9
NEWMONT USA LIMITED, Plan Sponsor |
||||
Dated: October 26, 2011 | By: | /s/ Stephen P. Gottesfeld | ||
Name: | Stephen P. Gottesfeld | |||
Title: | Vice President, General Counsel and Secretary |
10
Nine Months Ended | ||||
September 30, 2011 | ||||
Earnings: |
||||
Income before income and mining tax and other items (1) |
$ | 2,856 | ||
Adjustments: |
||||
Fixed charges added to earnings |
206 | |||
Dividends from equity affiliates |
15 | |||
Amortization of capitalized interest |
18 | |||
$ | 3,095 | |||
Fixed Charges: |
||||
Net interest expense (2) |
$ | 193 | ||
Portion of rental expense representative of interest |
13 | |||
Fixed charges added to earnings |
206 | |||
Capitalized interest |
31 | |||
$ | 237 | |||
Ratio of earnings to fixed charges |
13.1 |
(1) | Excludes interest on income tax liabilities. Interest and penalties related to income taxes are included in Income and mining tax expense. | |
(2) | Includes interest expense of majority-owned subsidiaries and amortization of debt issuance costs. |
/s/ Richard T. OBrien | ||||
Richard T. OBrien | ||||
Chief Executive Officer |
/s/ Russell Ball | ||||
Russell Ball | ||||
Chief Financial Officer |
/s/ RICHARD T. OBRIEN | ||||
Richard T. OBrien | ||||
Chief Executive Officer |
/s/ RUSSELL BALL | ||||
Russell Ball | ||||
Chief Financial Officer |
| Section 104 Citations: Citations received from MSHA under section 104 of the Mine Act, which includes citations for health or safety standards that could significantly and substantially contribute to a serious injury if left unabated. | |
| Section 104(b) Orders: Orders issued by MSHA under section 104(b) of the Mine Act, which represents a failure to abate a citation under section 104(a) within the period of time prescribed by MSHA. This results in an order of immediate withdrawal from the area of the mine affected by the condition until MSHA determines that the violation has been abated. | |
| Section 104(d) Citations and Orders: Citations and orders issued by MSHA under section 104(d) of the Mine Act for unwarrantable failure to comply with mandatory health or safety standards. | |
| Section 110(b)(2) Violations: Flagrant violations issued by MSHA under section 110(b)(2) of the Mine Act. | |
| Section 107(a) Orders: Orders issued by MSHA under section 107(a) of the Mine Act for situations in which MSHA determined an imminent danger (as defined by MSHA) existed. | |
| Pending Legal Actions: Pending legal actions before the Commission as required to be reported by Section 1503(a)(3) of the Act. The Commission is an independent adjudicative agency that provides administrative trial and appellate review of legal disputes arising under the Mine Act. These cases may involve, among other questions, challenges by operators to citations, orders and penalties they have received from MSHA or complaints of discrimination by miners under Section 105 of the Mine Act. The following is a brief description of the types of legal actions that may be brought before the Commission. |
| Contests of Citations and Orders A contest proceeding may be filed with the Commission by operators, miners or miners representatives to challenge the issuance of a citation or order issued by MSHA. | ||
| Contests of Proposed Penalties (Petitions for Assessment of Penalties) A contest of a proposed penalty is an administrative proceeding before the Commission challenging a civil penalty that MSHA has proposed for the alleged violation contained in a citation or order. The validity of the citation may also be challenged in this proceeding as well. |
| Complaints for Compensation A complaint for compensation may be filed with the Commission by miners entitled to compensation when a mine is closed by certain withdrawal orders issued by MSHA. The purpose of the proceeding is to determine the amount of compensation, if any, due miners idled by the orders. | ||
| Complaints of Discharge, Discrimination or Interference A discrimination proceeding is a case that involves a miners allegation that he or she has suffered a wrong by the operator because he or she engaged in some type of activity protected under the Mine Act, such as making a safety complaint. | ||
| Temporary Reinstatement Proceedings Temporary reinstatement proceedings involve cases in which a miner has filed a complaint with MSHA stating he or she has suffered discrimination and the miner has lost his or her position. | ||
| Emergency Response Plan (ERP) Dispute Proceedings ERP dispute proceedings are cases brought before the Commission when an operator is issued a citation because it has not agreed to include a certain provision in its ERP. |
Section | ||||||||||||||||||||||||||||||||
104(d) | ($ in millions) | |||||||||||||||||||||||||||||||
Section | Section | Citations | Section | Section | Proposed | Pending | ||||||||||||||||||||||||||
104 | 104(b) | and | 110(b)(2) | 107(a) | MSHA | Legal | ||||||||||||||||||||||||||
Mine(1)(2) | Citations(3) | Orders(3) | Orders(3) | Violations | Orders(3) | Assessments(4) | Fatalities | Actions(5) | ||||||||||||||||||||||||
Chukar |
| | | | | $ | | | 1 | |||||||||||||||||||||||
Deep Post |
| | | | | $ | | | 2 | |||||||||||||||||||||||
Emigrant |
| | | | | $ | | | 1 | |||||||||||||||||||||||
Exodus |
7 | | | | | $ | | | 2 | |||||||||||||||||||||||
Genesis |
| | | | | $ | | | 5 | |||||||||||||||||||||||
Leeville |
13 | | | | | $ | 0.02 | | 13 | |||||||||||||||||||||||
Midas |
5 | | | | | $ | 0.01 | | 12 | |||||||||||||||||||||||
Mill 6 |
| | | | | $ | | | 3 | |||||||||||||||||||||||
Pete Bajo |
| | | | | $ | | | | |||||||||||||||||||||||
Phoenix |
20 | | | | | $ | 0.01 | | 3 | |||||||||||||||||||||||
South Area |
| | | | | $ | | | 7 | |||||||||||||||||||||||
Twin Creeks |
| | | | | $ | | | 4 | |||||||||||||||||||||||
Lone Tree |
| | | | | $ | | | | |||||||||||||||||||||||
Sage Mill |
| | | | | $ | | | 1 | |||||||||||||||||||||||
Vista |
| | | | | $ | | | | |||||||||||||||||||||||
TOTAL |
45 | | | | | $ | 0.04 | | 54 | |||||||||||||||||||||||
(1) | The table above reflects citations and orders issued to us by MSHA for the quarter ended September 30, 2011 and the pending legal actions before the Commission for the quarter ended September 30, 2011. | |
(2) | The definition of mine under section 3 of the Mine Act includes the mine, as well as other items used in, or to be used in, or resulting from, the work of extracting minerals, such as land, structures, facilities, equipment, machines, tools, and minerals preparation facilities. Unless otherwise indicated, any of these other items associated with a single mine have been aggregated in the totals for that mine. MSHA assigns an identification number to each mine and may or may not assign separate identification numbers to related facilities such as preparation facilities. We are providing the information in the table by mine rather than MSHA identification number because that is how we manage and operate our mining business and we believe this presentation will be more useful to investors than providing information based on MSHA identification numbers. | |
(3) | 45 Section 104 Citations were subject to contest as of September 30, 2011. | |
(4) | Represents the total dollar value of the proposed assessment from MSHA under the Mine Act pursuant to the citations and or orders preceding such dollar value in the corresponding row. | |
(5) | The foregoing list includes legal actions which were initiated prior to the current reporting period and which do not necessarily relate to citations, orders or proposed assessments issued by MSHA for the quarter ended September 30, 2011. Of the 54 pending legal actions, 53 represent contests of 168 citations or orders (for which the aggregate amount assessed to date is of approximately $0.65 million) and the remaining 1 represents complaints of discrimination. |
<0`QI2`R90E6R3PD`#*A*P
M`%-0`>?0`]<@NBIZ_RQO,#A(X`0_P"!9X`,,L`,(_$RFP@"#PTV[5'@Q$`$>
MS"RH"`1KQ)4NP```()!5J2V2.U#WX!DD\%0<0`5[!3#;TL)1L'Y+<$Y3F!%?!@0%0`0H]JET``9Q]2CIU`$G^QJN
MLQ&1@2(8(,$`LP-8`-Z300(!`$F[U<($F7<$T`$]`.,T6BH[X%_,00!`D$98
M0"]J8P,`8./6'*C9Z*46,``RL+MTP`3&8L5$D!%]R"+J60$JD-0+\`5@K1/&
M=$+WS<=V\`OHP!&7Z,6KIBS=(@->C@""'"04P-6D\@)0P-2>&3.7-2ZL5[5,
ML&_%*P`U0%*"'#@%T$$LH!Y"WLER20&IZE(#D``C@"R1#`$$T!0:5@`>(`-Y
M)?\`-DDF.*-=>'L]K(`=Y`#^^8J55`#/?1^-?!ZU/($4Z#1SH+)
M9C2)Z*H#+4`'%YO;90F1"]9U#%8#-+"[TN(';8"4D-?4!L"\]:RB?&4"$Y"(
MD]$!&R``:KX&(6`-O^
M8SO:R`XPP`0*N@(7H`2]\)=G(!`:`#)-`#JE!/HD4&3-`2;BD$6`!MYF8!
M#=``9&`&=^(G0VH%^MD-Q^
AY
M]V.K\W(#0@D%;:,D/S(!]I,!K=9`>1$!<*<(//!ZI!H6&'`#",`"%59!>E@!
M1P!(./$2$0$4`R4W;S"N+<56"S$$`R`#N[@`P)I^'<$)/1"`$"!`Y3,'&+`$
M2*#_$4KG.U9A`0Q`&_Y@/@,`&SV`$7J9!Z@U`$^0"5"``Q%X`YO"`B=A%7\P
M`3;@)GX0AT,P!*G*A%119*Y6"P2%!;.V"@WP``-F[B$MKHJ]'P`E;00PQ)
MK-&9"C40!'3@$FWS!!60C@?@,4$CB2U@??,V!^;@A051`%J;:9*H`O+P$C(@
M%V=7%0S`G(%%`;[6J
Investments (Tables) | 9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2011 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments (Tables) [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment in Marketable Securities |
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gross Unrealized Losses and Fair Value of the Company's Investments |
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) (USD $) In Millions | 9 Months Ended | |
---|---|---|
Sep. 30, 2011 | Sep. 30, 2010 | |
Operating activities: | ||
Net income | $ 1,869 | $ 2,094 |
Adjustments: | ||
Amortization | 776 | 697 |
Loss from discontinued operations | 136 | 0 |
Reclamation and remediation | 63 | 44 |
Deferred income taxes | (106) | (52) |
Stock based compensation and other non-cash benefits | 62 | 54 |
Impairment of marketable securities | 175 | 0 |
Gain on asset sales, net | (68) | (54) |
Other operating adjustments and write-downs | 102 | 138 |
Net change in operating assets and liabilities | (343) | (586) |
Net cash provided from continuing operations | 2,666 | 2,335 |
Net cash used in discontinued operations | (4) | (13) |
Net cash provided from operations | 2,662 | 2,322 |
Investing activities: | ||
Additions to property, plant and mine development | (1,781) | (972) |
Proceeds from sale of marketable securities | 74 | 1 |
Purchases of marketable securities | (17) | (9) |
Acquisitions, net | (2,301) | (2) |
Proceeds from sale of other assets | 6 | 53 |
Other | (9) | (73) |
Net cash used in investing activities | (4,028) | (1,002) |
Financing activities: | ||
Proceeds from debt, net | 1,798 | 0 |
Repayment of debt | (2,086) | (274) |
Sale of noncontrolling interests | 0 | 229 |
Acquisition of noncontrolling interests | 0 | (109) |
Dividends paid to common stockholders | (321) | (172) |
Dividends paid to noncontrolling interests | (17) | (360) |
Proceeds from stock issuance, net | 35 | 56 |
Change in restricted cash and other | 3 | 46 |
Net cash used in financing activities | (588) | (584) |
Effect of exchange rate changes on cash | 33 | 0 |
Net change in cash and cash equivalents | (1,921) | 736 |
Cash and cash equivalents at beginning of period | 4,056 | 3,215 |
Cash and cash equivalents at end of period | $ 2,135 | $ 3,951 |
CONDENSED CONSOLIDATED BALANCE SHEET (unaudited) (USD $) In Millions | Sep. 30, 2011 | Dec. 31, 2010 |
---|---|---|
ASSETS | ||
Cash and cash equivalents | $ 2,135 | $ 4,056 |
Trade receivables | 312 | 582 |
Accounts receivable | 259 | 88 |
Investments | 94 | 113 |
Inventories | 720 | 658 |
Stockpiles and ore on leach pads | 627 | 617 |
Deferred income tax assets | 425 | 177 |
Other current assets | 1,788 | 962 |
Current assets | 6,360 | 7,253 |
Property, plant and mine development, net | 17,019 | 12,907 |
Investments | 1,254 | 1,568 |
Stockpiles and ore on leach pads | 2,096 | 1,757 |
Deferred income tax assets | 1,629 | 1,437 |
Other long-term assets | 781 | 741 |
Total assets | 29,139 | 25,663 |
LIABILITIES | ||
Debt | 578 | 259 |
Accounts payable | 542 | 427 |
Employee-related benefits | 269 | 288 |
Income and mining taxes | 381 | 355 |
Other current liabilities | 2,705 | 1,418 |
Current liabilities | 4,475 | 2,747 |
Debt | 3,659 | 4,182 |
Reclamation and remediation liabilities | 1,031 | 984 |
Deferred income tax liabilities | 2,592 | 1,488 |
Employee-related benefits | 350 | 325 |
Other long-term liabilities | 328 | 221 |
Total liabilities | 12,435 | 9,947 |
Commitments and Contingencies | ||
EQUITY | ||
Common stock | 781 | 778 |
Additional paid-in capital | 8,364 | 8,279 |
Accumulated other comprehensive income | 462 | 1,108 |
Retained earnings | 4,253 | 3,180 |
Newmont stockholders' equity | 13,860 | 13,345 |
Noncontrolling interests | 2,844 | 2,371 |
Total equity | 16,704 | 15,716 |
Total liabilities and equity | $ 29,139 | $ 25,663 |
Acquisitions (Details) (Fronteer [Member]) | 9 Months Ended | |
---|---|---|
Sep. 30, 2011
USD ($) | Sep. 30, 2011
CAD | |
Assets: | ||
Cash | $ 2,000,000 | |
Property, plant and mine development | 3,208,000,000 | |
Investments | 281,000,000 | |
Other assets | 6,000,000 | |
Total assets | 3,497,000,000 | |
Liabilities: | ||
Deferred income tax liability | 1,223,000,000 | |
Other liabilities | 15,000,000 | |
Total liabilities | 1,238,000,000 | |
Net assets acquired | 2,259,000,000 | |
Business Acquisition (Textuals) | ||
Acquisition common shares acquired | 153,000,000 | 153,000,000 |
Cash per common share received by shareholders | 14.00 | |
Common shares received by shareholders | 0.25 | 0.25 |
Acquisition transaction costs | 22,000,000 | |
Purchase price | $ 2,259,000,000 |
Other Assets (Tables) | 9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2011 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Assets (Tables) [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Assets |
|
Supplementary Data (Details) | Sep. 30, 2011 |
---|---|
Supplementary Data (Textuals) | |
Ratio of earnings to fixed charges | 13.1 |
Investments | 9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2011 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INVESTMENTS |
Included in Investments at September 30, 2011 and December 31, 2010 are $9 and $10, respectively, of long-term marketable debt securities and $6 and $6 of long-term marketable equity securities, respectively, that are legally pledged for purposes of settling asset retirement obligations related to the San Jose Reservoir at Yanacocha.
In conjunction with the April 6, 2011 acquisition of Fronteer, Newmont acquired $208 of Paladin Energy Ltd. securities and $73 of other marketable equity securities and warrants. During the first nine months of 2011 and 2010, the Company purchased other marketable securities for $17 and $9, respectively. In June 2011, Newmont sold its investment in New Gold Inc. and realized a gain of $50. In July 2011, Newmont sold its investment in other marketable equity securities and realized a gain of $14.
During the third quarter of 2011, the Company recognized impairments for other-than-temporary declines in value in accordance with ASC guidance of $148 for Paladin Energy Ltd. and $26 for other marketable equity securities acquired in the Fronteer acquisition.
The following tables present the gross unrealized losses and fair value of the Company's investments with unrealized losses that are not deemed to be other-than-temporarily impaired, aggregated by length of time that the individual securities have been in a continuous unrealized loss position:
Included in the tables above are the unrealized losses of $33 and $8 at September 30, 2011 and December 31, 2010, respectively, related to the Company's investments in asset backed commercial paper, auction rate securities and marketable equity securities as listed in the tables above. While the fair values of these investments are below their respective cost, the Company views these declines as temporary. The Company intends to hold its investment in auction rate securities and asset backed commercial paper until maturity or such time that the market recovers and therefore considers these losses temporary.
|
Net Change in Operating Assets and Liabilities (Details) (USD $) In Millions | 9 Months Ended | |
---|---|---|
Sep. 30, 2011 | Sep. 30, 2010 | |
Decrease (increase) in operating assets: | ||
Trade and accounts receivable | $ 125 | $ (63) |
Inventories, stockpiles and ore on leach pads | (332) | (297) |
EGR refinery assets | (855) | (200) |
Other assets | (109) | (50) |
Increase (decrease) in operating liabilities: | ||
Accounts payable and other accrued liabilities | (3) | (144) |
EGR refinery liabilities | 855 | 200 |
Reclamation liabilities | (24) | (32) |
Net change in operating assets and liabilities | $ (343) | $ (586) |
Document and Entity Information | 9 Months Ended | |
---|---|---|
Sep. 30, 2011 | Oct. 20, 2011 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | NEWMONT MINING CORP /DE/ | |
Entity Central Index Key | 0001164727 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2011 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2011 | |
Document Fiscal Period Focus | Q3 | |
Current Fiscal Year End Date | --12-31 | |
Entity Well-known Seasoned Issuer | Yes | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 488,214,270 |
Fair Value Accounting (Tables) | 9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2011 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Accounting (Tables) [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurement of Assets and Liabilities |
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes in the Fair Value of the Company's Level 3 Financial Assets |
|
Other Assets | 9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2011 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Asset [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
OTHER ASSETS |
|
Acquisitions (Tables) | 9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2011 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Combination Disclosure (Tables) [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisitions |
|
Other Assets (Details) (USD $) In Millions | Sep. 30, 2011 | Dec. 31, 2010 |
---|---|---|
Other current assets: | ||
Refinery metal inventory and receivable | $ 1,445 | $ 617 |
Prepaid assets | 155 | 65 |
Derivative instruments | 95 | 196 |
Other | 93 | 84 |
Other current assets, total | 1,788 | 962 |
Other long-term assets: | ||
Goodwill | 188 | 188 |
Intangible assets | 149 | 91 |
Income tax receivable | 141 | 119 |
Debt issuance costs | 60 | 39 |
Derivative instruments | 51 | 116 |
Restricted cash | 22 | 25 |
Other | 170 | 163 |
Other long-term assets, total | $ 781 | $ 741 |
"+ text.join( "
\n" ) +"
" + text[p] + "
\n"; } } }else{ formatted = '' + raw + '
'; } html = ''+ "\n"+''+ "\n"+''+ "\n"+' formatted: '+ ( this.Default == 'raw' ? 'as Filed' : 'with Text Wrapped' ) +''+ "\n"+' | '+ "\n"+'
'+ "\n"+' | '+ "\n"+' '+ "\n"+'
'+ "\n"+' | '+ "\n"+' '+ "\n"+'
Employee Pension and Other Benefit Plans | 9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2011 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Employee Pension and Other Benefit Plans [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
EMPLOYEE PENSION AND OTHER BENEFIT PLANS |
|
Debt | 9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2011 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
DEBT |
In May 2011, Newmont repaid the $223 balance outstanding on the 8 5/8% debentures. Scheduled minimum debt repayments are $5 for the remainder of 2011, $578 in 2012, $42 in 2013, $550 in 2014, $18 in 2015 and $3,044 thereafter.
Corporate Revolving Credit Facility
Effective May 20, 2011, the Company entered into a new uncollateralized $2,500 revolving credit facility with a syndicate of commercial banks. This new revolving credit facility replaced the existing revolving credit facility which was cancelled upon the effectiveness of the new facility. The new facility provides for borrowings in U.S. dollars and contains a letter of credit sub-facility. The new facility matures in May 2016. Interest rates and facility fees vary based on the credit ratings of the Company's senior, uncollateralized, long-term debt. Borrowings under the facility bear interest at a market based rate plus a margin determined by the Company's credit. Facility fees currently accrue at an annual rate of 0.175% of the aggregate commitments. At September 30, 2011, there were no borrowings outstanding and $241 outstanding in letters of credit.
Subsidiary Financings PTNNT Revolving Credit Facility Effective May 27, 2011, PTNNT entered into a new $600 reducing revolving credit facility with a syndicate of banks. This new reducing revolving credit facility provides for borrowings in U.S. dollars. The facility matures in March 2017. The facility is non-recourse to Newmont and substantially all of PTNNT's assets are pledged as collateral. Borrowings under the facility bear interest at a rate per annum equal to LIBOR plus a margin of 4.00%. Commitment fees currently accrue on the daily average unused amount of the commitment of each lender at an annual rate of 2.00%. There were no borrowings outstanding under the facility at September 30, 2011.
|
Net Income Attributable to Noncontrolling Interests (Tables) | 9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2011 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Income Attributable to Noncontrolling Interests (Tables) [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Income Attributable to Noncontrolling Interests |
|
Other Expense, Net (Tables) | 9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2011 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Expense, Net (Tables) [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Expense, Net |
|
Stockpiles and Ore on Leach Pads | 9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2011 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stockpiles And Ore On Leach Pad [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
STOCKPILES AND ORE ON LEACH PADS |
|
Income Per Common Share | 9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2011 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Per Common Share [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INCOME PER COMMON SHARE | NOTE 13 INCOME PER COMMON SHARE
Basic income per common share is computed by dividing income available to Newmont common stockholders by the weighted average number of common shares outstanding during the period. Diluted income per common share is computed similarly to basic income per common share except that weighted average common shares is increased to include the potential issuance of dilutive common shares.
Options to purchase 3 and 2 million shares of common stock at average exercise prices of $57 and $57 were outstanding at September 30, 2011 and 2010, respectively, but were not included in the computation of diluted weighted average common shares because their effect would have been anti-dilutive.
In February 2009 and July 2007, Newmont issued $518 and $1,150, respectively, of Convertible Senior Notes that, if converted in the future, may have a dilutive effect on the Company's weighted average number of common shares. The notes issued in 2009 and 2007 are convertible, at the holder's option, equivalent to a conversion price of $45.90 and $45.86, respectively, per share of common stock. Under the convertible note indenture, Newmont is required to settle the principal amount of the Convertible Senior Notes in cash and may elect to settle the remaining conversion obligation (Newmont average share price in excess of the conversion price), if any, in cash, shares or a combination thereof. The effect of contingently convertible instruments on diluted earnings per share is calculated under the net share settlement method in accordance with ASC guidance. The average price of the Company's common stock exceeded the conversion prices for all periods presented, resulting in additional shares included in the computation of diluted weighted average common shares.
In connection with the 2007 Convertible Senior Notes offering, the Company entered into Call Spread Transactions which included the purchase of call options and the sale of warrants. As a result of the Call Spread Transactions, the conversion price of $45.86 was effectively increased to $59.81. Should the warrant transactions become dilutive to the Company's earnings per share (Newmont's average share price exceeds $59.81) the effect of the warrant transactions on diluted earnings per share will be calculated in accordance with the net share settlement method.
The Net income attributable to Newmont stockholders and transfers with noncontrolling interests was:
|
Reclamation and Remediation | 9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2011 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reclamation and Remediation [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
RECLAMATION AND REMEDIATION | NOTE 4 RECLAMATION AND REMEDIATION
At September 30, 2011 and December 31, 2010, $922 and $904, respectively, were accrued for reclamation obligations relating to mineral properties. In addition, the Company is involved in several matters concerning environmental obligations associated with former, primarily historic, mining activities. Generally, these matters concern developing and implementing remediation plans at the various sites involved. At September 30, 2011 and December 31, 2010, $166 and $144, respectively, were accrued for such obligations. These amounts are also included in Reclamation and remediation liabilities.
The following is a reconciliation of Reclamation and remediation liabilities:
The current portion of Reclamation and remediation liabilities of $57 and $64 at September 30, 2011 and December 31, 2010, respectively, are included in Other current liabilities (see Note 24).
The Company's reclamation and remediation expenses consisted of:
|
Segment Information (Tables) | 9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2011 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Information (Tables) [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial Information of Newmont's Segments |
|
Income and Mining Taxes | 9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2011 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income and Mining Taxes [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INCOME AND MINING TAXES | NOTE 10 INCOME AND MINING TAXES
During the third quarter of 2011, the Company recorded estimated income and mining tax expense of $371 resulting in an effective tax rate of 36%. Estimated income and mining tax expense during the third quarter of 2010 was $360 for an effective tax rate of 31%. The higher effective tax rate in the third quarter of 2011 resulted from recording a valuation allowance on the deferred tax asset that was generated as a result of the impairment loss on specific marketable equity securities, as well as the change in the jurisdictional blend of the Company's taxable income and the effect of percentage depletion. During the first nine months of 2011, estimated income and mining tax expense was $863 resulting in an effective tax rate of 30%. Estimated income and mining tax expense during the first nine months of 2010 was $784 for an effective tax rate of 27%. The higher effective tax rate in the first nine months of 2011 was due to recording a valuation allowance related to the impairment loss on specific marketable equity securities as well as a large benefit in the prior year resulting from the restructuring of the form of the Company's non-US subsidiaries. The Company operates in numerous countries around the world and accordingly it is subject to, and pays annual income taxes under, the various income tax regimes in the countries in which it operates. Some of these tax regimes are defined by contractual agreements with the local government, and others are defined by the general corporate income tax laws of the country. The Company has historically filed, and continues to file, all required income tax returns and pay the income taxes reasonably determined to be due. The tax rules and regulations in many countries are highly complex and subject to interpretation. From time to time the Company is subject to a review of its historic income tax filings and in connection with such reviews, disputes can arise with the taxing authorities over the interpretation or application of certain rules to the Company's business conducted within the country involved. During the quarter, the U.S. Internal Revenue Service issued a Technical Advice Memorandum (“TAM”) to the Company regarding the U.S. income tax treatment of the Price Capped Forward Sales Contracts settled in cash in 2007. The TAM provides guidance which is unfavorable to the Company. The Company intends to vigorously defend its positions through all processes available to it and believes it should prevail.
At September 30, 2011, the Company's total unrecognized tax benefit was $111 for uncertain income tax positions taken or expected to be taken on income tax returns. Of this, $44 represents the amount of unrecognized tax benefits that, if recognized, would affect the Company's effective income tax rate.
As a result of the statute of limitations that expire in the next 12 months in various jurisdictions, and possible settlements of audit-related issues with taxing authorities in various jurisdictions with respect to which none of the issues are individually significant, the Company believes that it is reasonably possible that the total amount of its net unrecognized income tax benefits will decrease by approximately $5 to $10 in the next 12 months.
The Company's income and mining tax expense differed from the amounts computed by applying the United States statutory corporate income tax rate for the following reasons:
|
Changes in Equity | 9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2011 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Change in Equity [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CHANGES IN EQUITY |
|
Derivative Instruments (Details) In Millions, unless otherwise specified | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | |||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2011
USD ($) | Dec. 31, 2010
USD ($) | Sep. 30, 2011
Gold [Member]
USD ($)
oz | Sep. 30, 2011
Gold [Member]
USD ($)
oz | Sep. 30, 2011
Copper [Member]
USD ($)
lb | Sep. 30, 2011
Copper [Member]
USD ($)
lb | Sep. 30, 2011
Expected Maturity Date Year 2011 [Member]
Diesel Fixed Forward Contracts [Member]
gal | Sep. 30, 2011
Expected Maturity Date Year 2011 [Member]
AU Dollar Operating Fixed Forward Contracts [Member]
AUD | Sep. 30, 2011
Expected Maturity Date Year 2011 [Member]
AU Dollar Capital Fixed Forward Contracts [Member]
AUD | Sep. 30, 2011
Expected Maturity Date Year 2011 [Member]
NZ Dollar Operating Fixed Forward Contracts [Member]
NZD | Sep. 30, 2011
Expected Maturity Date Year 2012 [Member]
Diesel Fixed Forward Contracts [Member]
gal | Sep. 30, 2011
Expected Maturity Date Year 2012 [Member]
AU Dollar Operating Fixed Forward Contracts [Member]
AUD | Sep. 30, 2011
Expected Maturity Date Year 2012 [Member]
AU Dollar Capital Fixed Forward Contracts [Member]
AUD | Sep. 30, 2011
Expected Maturity Date Year 2012 [Member]
NZ Dollar Operating Fixed Forward Contracts [Member]
NZD | Sep. 30, 2011
Expected Maturity Date Year 2013 [Member]
Diesel Fixed Forward Contracts [Member]
gal | Sep. 30, 2011
Expected Maturity Date Year 2013 [Member]
AU Dollar Operating Fixed Forward Contracts [Member]
AUD | Sep. 30, 2011
Expected Maturity Date Year 2013 [Member]
AU Dollar Capital Fixed Forward Contracts [Member]
AUD | Sep. 30, 2011
Expected Maturity Date Year 2013 [Member]
NZ Dollar Operating Fixed Forward Contracts [Member]
NZD | Sep. 30, 2011
Expected Maturity Date Year 2014 [Member]
AU Dollar Operating Fixed Forward Contracts [Member]
AUD | Sep. 30, 2011
Expected Maturity Date Year 2014 [Member]
AU Dollar Capital Fixed Forward Contracts [Member]
AUD | Sep. 30, 2011
Expected Maturity Date Year 2015 [Member]
AU Dollar Operating Fixed Forward Contracts [Member]
AUD | Sep. 30, 2011
Expected Maturity Date Year 2016 [Member]
AU Dollar Operating Fixed Forward Contracts [Member]
AUD | Sep. 30, 2011
Diesel Fixed Forward Contracts [Member]
USD ($)
gal | Dec. 31, 2010
Diesel Fixed Forward Contracts [Member]
USD ($) | Sep. 30, 2011
Diesel Fixed Forward Contracts [Member]
Cash Flow Hedging [Member]
USD ($) | Sep. 30, 2010
Diesel Fixed Forward Contracts [Member]
Cash Flow Hedging [Member]
USD ($) | Sep. 30, 2011
Diesel Fixed Forward Contracts [Member]
Cash Flow Hedging [Member]
USD ($) | Sep. 30, 2010
Diesel Fixed Forward Contracts [Member]
Cash Flow Hedging [Member]
USD ($) | Sep. 30, 2011
AU Dollar Operating Fixed Forward Contracts [Member]
USD ($) | Sep. 30, 2011
AU Dollar Operating Fixed Forward Contracts [Member]
AUD | Dec. 31, 2010
AU Dollar Operating Fixed Forward Contracts [Member]
USD ($) | Sep. 30, 2011
AU Dollar Capital Fixed Forward Contracts [Member]
AUD | Sep. 30, 2011
AU Dollar Capital Fixed Forward Contracts [Member]
USD ($) | Sep. 30, 2011
NZ Dollar Operating Fixed Forward Contracts [Member]
NZD | Sep. 30, 2011
NZ Dollar Operating Fixed Forward Contracts [Member]
USD ($) | Dec. 31, 2010
NZ Dollar Operating Fixed Forward Contracts [Member]
USD ($) | Sep. 30, 2011
Interest Rate Swap Contracts [Member]
USD ($) | Dec. 31, 2010
Interest Rate Swap Contracts [Member]
USD ($) | Sep. 30, 2011
Interest Rate Swap Contracts [Member]
Fair Value Hedging [Member]
USD ($) | Sep. 30, 2010
Interest Rate Swap Contracts [Member]
Fair Value Hedging [Member]
USD ($) | Sep. 30, 2011
Interest Rate Swap Contracts [Member]
Fair Value Hedging [Member]
USD ($) | Sep. 30, 2010
Interest Rate Swap Contracts [Member]
Fair Value Hedging [Member]
USD ($) | Sep. 30, 2011
Forward Starting Swap Contracts [Member]
USD ($) | Sep. 30, 2011
Forward Starting Swap Contracts [Member]
Cash Flow Hedging [Member]
USD ($) | Sep. 30, 2011
Forward Starting Swap Contracts [Member]
Cash Flow Hedging [Member]
USD ($) | Sep. 30, 2011
Foreign Exchange Contract [Member]
Cash Flow Hedging [Member]
USD ($) | Sep. 30, 2010
Foreign Exchange Contract [Member]
Cash Flow Hedging [Member]
USD ($) | Sep. 30, 2011
Foreign Exchange Contract [Member]
Cash Flow Hedging [Member]
USD ($) | Sep. 30, 2010
Foreign Exchange Contract [Member]
Cash Flow Hedging [Member]
USD ($) | Sep. 30, 2011
Debentures 8 5/8% (Hedged Portion) [Member]
Fair Value Hedging [Member]
USD ($) | Sep. 30, 2010
Debentures 8 5/8% (Hedged Portion) [Member]
Fair Value Hedging [Member]
USD ($) | Sep. 30, 2011
Debentures 8 5/8% (Hedged Portion) [Member]
Fair Value Hedging [Member]
USD ($) | Sep. 30, 2010
Debentures 8 5/8% (Hedged Portion) [Member]
Fair Value Hedging [Member]
USD ($) | |
Foreign Currency Derivatives Abstract | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Average rate | 2.61 | 0.87 | 1.03 | 0.73 | 2.77 | 0.90 | 1.01 | 0.75 | 2.96 | 0.91 | 0.98 | 0.78 | 0.89 | 0.96 | 0.86 | 0.90 | 2.76 | 0.90 | 0.90 | 0.99 | 0.99 | 0.75 | 0.75 | ||||||||||||||||||||||||||||||
Notional Amount of Foreign Currency Derivatives | 315 | 11 | 20 | 1,114 | 57 | 53 | 863 | 51 | 15 | 576 | 22 | 292 | 63 | 3,223 | 141 | 88 | |||||||||||||||||||||||||||||||||||||
Expected hedge ratio | 58.00% | 84.00% | 55.00% | 64.00% | 39.00% | 70.00% | 41.00% | 41.00% | 10.00% | 53.00% | 28.00% | 15.00% | 37.00% | 23.00% | 19.00% | 6.00% | |||||||||||||||||||||||||||||||||||||
Diesel Derivative Contracts Outstanding | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Average rate | 2.61 | 0.87 | 1.03 | 0.73 | 2.77 | 0.90 | 1.01 | 0.75 | 2.96 | 0.91 | 0.98 | 0.78 | 0.89 | 0.96 | 0.86 | 0.90 | 2.76 | 0.90 | 0.90 | 0.99 | 0.99 | 0.75 | 0.75 | ||||||||||||||||||||||||||||||
Diesel gallons | 6,000,000 | 18,000,000 | 4,000,000 | 28,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||
Expected hedge ratio | 58.00% | 84.00% | 55.00% | 64.00% | 39.00% | 70.00% | 41.00% | 41.00% | 10.00% | 53.00% | 28.00% | 15.00% | 37.00% | 23.00% | 19.00% | 6.00% | |||||||||||||||||||||||||||||||||||||
Fair values of Derivative Instruments Designated as Hedges | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Assets Current | 95 | 196 | 5 | 7 | 88 | 181 | 2 | 5 | 3 | ||||||||||||||||||||||||||||||||||||||||||||
Other Long-Term Assets | 51 | 116 | 1 | 51 | 114 | 1 | |||||||||||||||||||||||||||||||||||||||||||||||
Other Current Liabilities | 415 | 3 | 51 | 4 | 1 | 356 | |||||||||||||||||||||||||||||||||||||||||||||||
Other Long-Term Liabilities | 37 | 2 | 29 | 5 | 1 | ||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments (Textuals) [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Hedge contracts net liability position | 356 | 356 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Forward starting swaps notional amount | 2,000 | 2,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Charge related to hedge ineffectiveness | 0 | 1 | 2 | 3 | 10 | 10 | 0 | (1) | 0 | (2) | |||||||||||||||||||||||||||||||||||||||||||
Fixed to floating swap contracts, amount | 222 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Average price | 1,702.00 | 1,534.00 | 4.07 | 4.20 | |||||||||||||||||||||||||||||||||||||||||||||||||
Recorded average provisional price | 1,691.00 | 1,525.00 | 3.91 | 4.17 | |||||||||||||||||||||||||||||||||||||||||||||||||
Provisional pricing mark-to-market gain (loss) | 20 | 38 | 74 | 102 | |||||||||||||||||||||||||||||||||||||||||||||||||
Provisional pricing mark-to-market gain (loss) rate | 14 | 9 | 0.80 | 0.37 | |||||||||||||||||||||||||||||||||||||||||||||||||
Provisional pricing quantity sales | 79,000 | 79,000 | 102,000,000 | 102,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||
Average price, subject to final pricing | 1,621.00 | 1,621.00 | 3.24 | 3.24 | |||||||||||||||||||||||||||||||||||||||||||||||||
Approximate gain amount to be reclassified from accumulated other comprehensive income, net of tax to income | 48 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Location and Amount of Gains (Losses) Reported in Condensed Consolidated Financial Statements | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Gain (loss) recognized in other comprehensive income (effective portion) | (7) | 5 | 3 | 0 | (345) | (356) | (263) | 232 | (70) | 174 | |||||||||||||||||||||||||||||||||||||||||||
Gain reclassified from Accumulated other comprehensive income into income (effective portion) | 3 | 1 | 12 | 3 | 50 | 18 | 141 | 63 | |||||||||||||||||||||||||||||||||||||||||||||
Loss reclassified from Accumulated other comprehensive income into income (ineffective portion) | 0 | (1) | (2) | (3) | (10) | (10) | 0 | 1 | 0 | 2 | |||||||||||||||||||||||||||||||||||||||||||
Gains (Losses) Recorded for Hedged Item Related to Fair Value Hedges | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Gain recognized in income (effective portion) | 0 | 1 | 3 | 4 | 0 | 2 | (6) | 4 | |||||||||||||||||||||||||||||||||||||||||||||
Gain (loss) recognized in income (ineffective portion) | $ 0 | $ (1) | $ (2) | $ (3) | $ (10) | $ (10) | $ 0 | $ 1 | $ 0 | $ 2 |
Discontinued Operations | 9 Months Ended |
---|---|
Sep. 30, 2011 | |
Discontinued Operations [Abstract] | |
DISCONTINUED OPERATIONS | NOTE 11 DISCONTINUED OPERATIONS
Discontinued operations include Holloway Mining Company, which owned the Holt-McDermott property (“Holt property”) and was sold to St. Andrew Goldfields Ltd. (“St. Andrew”) in 2006. In 2009, the Superior Court issued a decision finding Newmont Canada Corporation (“Newmont Canada”) liable for a sliding scale royalty on production from the Holt property, which Newmont Canada appealed. In December 2010, the Company recognized a $28 charge, net of tax benefits of $12, related to these legal claims. In May 2011, the Ontario Court of Appeal upheld the Superior Court ruling resulting in an additional $136 charge, net of tax benefits of $7, in the second quarter. Net operating cash used in discontinued operations was $4 and $13 in the first nine months of 2011 and 2010, respectively. In 2011, Newmont Canada made payments related to the Holt property royalty and the 2010 amount related to the Kori Kollo operation in Bolivia which was sold in 2009.
|