EX-12.2 6 dex122.htm COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES Computation of Ratio of Earnings to Fixed Charges

Exhibit 12.2

 

NEWMONT MINING CORPORATION AND SUBSIDIARIES

 

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

(Amounts in thousands except ratio)

 

The ratio of earnings to fixed charges represents income before income taxes, interest expense and cumulative effect of changes in accounting principles, divided by interest expense. Interest expense includes amortization of capitalized interest and the portion of rent expense representative of interest. The Company guarantees certain third party debt and, beginning in 2003, expects to be required to pay certain amounts associated with such debt. Therefore, related interest on such guaranteed debt has been included in the ratio of earnings to fixed charges in 2003.

 

     For the Year Ended December 31,
  
     2003
     2002
    2001
     2000
     1999
  

Earnings:

                                        

Income (loss) before income taxes(1)

    $ 752,208     $ 118,884    $ (128,425 )   $ (30,033 )   $ (9,019 )

Adjustments:

                                        

Net interest expense(2)

      88,579       129,565      98,080       106,120       83,185  

QMC interest expense(3)

      2,579       ––      ––       ––       ––  

Amortization of capitalized interest

      9,152       9,526      7,362       8,793       4,886  

Portion of rental expense representative of interest

      3,465       3,017      2,747       2,936       2,914  

Undistributed income (loss) of affiliate

      (42,467 )     35,595      22,513       (17,930 )     (91,788 )

Minority interest of majority owned subsidiaries

      173,178       97,442      65,374       92,814       44,141  
    
 
  
 
 
     $ 986,694     $ 394,029    $ 67,651     $ 162,700     $ 34,319  
    
 
  
 
 

Fixed Charges:

                                        

Net interest expense(1)

    $ 88,579     $ 129,565    $ 98,080     $ 106,120     $ 83,185  

Capitalized interest

      8,945       5,226      10,633       5,534       23,345  

Portion of rental expense representative of interest

      3,465       3,017      2,747       2,936       2,914  
    
 
  
 
 
     $ 100,989     $ 137,808    $ 111,460     $ 114,590     $ 109,444  
    
 
  
 
 

Ratio of earnings to fixed charges

      9.8       2.86      (4)       1.4       (4)  
(1)   Pre-tax income (loss) before minority interest, equity income (loss) and impairment of affiliates and cumulative effect of a change in accounting principle, net of minority interest in income of affiliates.
(2)   Includes interest expense of majority-owned subsidiaries and amortization of debt issuance costs.
(3)   Represents interest expense related to Newmont’s guarantee of QMC Finance Pty Ltd debt.
(4)   The ratio was less than 1:1 for the years ended December 31, 2001 and 1999 as earnings were inadequate to cover fixed charges by deficiencies of $43.8 million and $75.1 million, respectively.