Newmont Reports Fourth Quarter and Full Year 2023 Results; Provides 2024 Outlook for Integrated Company
"2023 was a transformational year for
2023 Results1
-
Completed the acquisition of Newcrest Mining Limited on
November 6, 2023 , creating the world’s leading gold company with robust copper optionality -
Delivered
$1.4 billion in dividends to shareholders in 2023 -
Produced 5.5 million gold ounces and 891 thousand gold equivalent ounces (GEOs)2 from copper, silver, lead and zinc; in-line with revised guidance range and incorporating the legacy
Newcrest assets from the acquisition close date -
Reported gold Costs Applicable to Sales (CAS) per ounce3 of
$1,050 and gold All-In Sustaining Costs (AISC) per ounce3 of$1,444 ; in-line with revised guidance range and incorporating higher sustaining capital spend for 2023 -
Generated
$2.8 billion of cash from continuing operations and reported$88 million in Free Cash Flow3 after unfavorable working capital changes of$513 million and$2.7 billion of reinvestment to sustain current operations and advance near-term projects -
Reported Net Loss of
$2.5 billion driven by$1.9 billion in impairment charges,$1.5 billion in reclamation charges and$464 million inNewcrest transaction and integration costs; these items are excluded from adjusted earnings results -
Adjusted Net Income (ANI)3 of
$1.61 per share and Adjusted EBITDA3 of$4.2 billion for the full year; fourth quarter ANI was$0.50 per share -
Declared increased total
Newmont reserves of 136 million gold ounces and resources of 174 million gold ounces4; significant upside to other metals, including copper, silver, lead and zinc
2024 Outlook5
-
Announced
Newmont's go-forward Tier 1 Portfolio6, which is underpinned by eleven managed Tier 1 and Emerging Tier 1 assets and three non-managed operations; seeking to divest six non-core assets -
2024 production guidance is expected to be approximately 6.9 million gold ounces for the Total
Newmont portfolio; underpinned by 5.6 million gold ounces from the Tier 1 Portfolio6 -
Gold CAS is expected to be
$1,050 per ounce3, with Gold AISC of$1,400 per ounce3 in 2024 for the TotalNewmont portfolio -
Sustaining capital spend of approximately
$1.8 billion for the TotalNewmont portfolio -
Development capital spend of approximately
$1.3 billion in 2024 for the TotalNewmont portfolio -
Progressing key near-term development projects of Tanami Expansion 2, Ahafo North,
Cadia Block Caves and Cerro Negro Expansion 1 -
Updated Tanami Expansion 2 development capital estimate of
$1.7 to$1.8 billion with commercial production expected in the second half of 2027 -
Remain on track to deliver an expected
$500 million in synergies related to theNewcrest transaction by the end of 20257
____________________
1 Newmont’s actual consolidated financial results remain subject to completion of our annual audit procedures for the year ended
2 Gold equivalent ounces (GEOs) calculated using Gold (
3 Non-GAAP metrics; see reconciliations at the end of this release.
4 Total resources presented includes Measured and Indicated resources of 104.8 million gold ounces and Inferred resources of 69.1 million gold ounces. See cautionary statement at the end of this release.
5 See discussion of outlook, including the definition of the Tier 1 Portfolio, and cautionary statement at the end of this release regarding forward-looking statements.
6 Newmont’s go-forward portfolio is focused on Tier 1 assets, consisting of (1) six managed Tier 1 assets (Boddington, Tanami, Cadia, Lihir, Peñasquito and Ahafo), (2) assets owned through two non-managed joint ventures at Nevada Gold Mines and Pueblo Viejo, including four Tier 1 assets (Carlin, Cortez,
7 Synergies are a management estimate provided for illustrative purposes and should not be considered a GAAP or non-GAAP financial measure. Synergies represent management’s combined estimate of pre-tax synergies, supply chain efficiencies and Full Potential improvements, as a result of the integration of Newmont’s and Newcrest’s businesses that have been monetized for the purposes of the estimation. Such estimates are necessarily imprecise and are based on numerous judgments and assumptions. See cautionary statement at the end of this release regarding forward-looking statements.
Summary of Fourth Quarter and Full Year Results
|
Q4'23 |
Q3'23 |
Q4'22 |
FY'23 |
FY'22 |
||||||||||
Average realized gold price ($ per ounce) |
$ |
2,004 |
|
$ |
1,920 |
$ |
1,758 |
|
$ |
1,954 |
|
$ |
1,792 |
|
|
Attributable gold production (million ounces)1 |
|
1.74 |
|
|
1.29 |
|
|
1.63 |
|
|
5.55 |
|
|
5.96 |
|
Gold costs applicable to sales (CAS) ($ per ounce)2 |
$ |
1,086 |
|
$ |
1,019 |
|
$ |
940 |
|
$ |
1,050 |
|
$ |
933 |
|
Gold all-in sustaining costs (AISC) ($ per ounce)2 |
$ |
1,485 |
|
$ |
1,426 |
|
$ |
1,215 |
|
$ |
1,444 |
|
$ |
1,211 |
|
GAAP attributable net (loss) income from continuing operations ($m) |
$ |
(3,150 |
) |
$ |
157 |
|
$ |
(1,488 |
) |
$ |
(2,501 |
) |
$ |
(459 |
) |
Adjusted net income ($ millions)3 |
$ |
486 |
|
$ |
286 |
|
$ |
348 |
|
$ |
1,358 |
|
$ |
1,468 |
|
Adjusted net income per share ($/diluted share)3 |
$ |
0.50 |
|
$ |
0.36 |
|
$ |
0.44 |
|
$ |
1.61 |
|
$ |
1.85 |
|
Adjusted EBITDA ($ millions)3 |
$ |
1,384 |
|
$ |
933 |
|
$ |
1,161 |
|
$ |
4,217 |
|
$ |
4,550 |
|
Cash flow from continuing operations ($ millions) |
$ |
616 |
|
$ |
1,001 |
|
$ |
1,010 |
|
$ |
2,754 |
|
$ |
3,198 |
|
Capital expenditures ($ millions)4 |
$ |
920 |
|
$ |
604 |
|
$ |
646 |
|
$ |
2,666 |
|
$ |
2,131 |
|
Free cash flow ($ millions)5 |
$ |
(304 |
) |
$ |
397 |
|
$ |
364 |
|
$ |
88 |
|
$ |
1,067 |
|
FOURTH QUARTER 2023 KEY RESULTS DRIVERS
In the fourth quarter,
Excluding the impact from the acquisition of
Cash Flow from Continuing Operations and Free Cash Flow were both lower than the third quarter at
-
$1.9 billion of impairment charges primarily due to the write-down of goodwill of$1.2 billion at Peñasquito,$293 million at Musselwhite and$246 million at Éléonore- The goodwill impairment at Peñasquito was driven by an update to the geological model that impacted expected metal grade and recoveries, resulting in lower underlying cash flows
- The goodwill impairments at Musselwhite and Éléonore were driven by a deterioration in underlying cash flows as a result of higher costs due to inflationary pressures
- The long-lived assets at all three sites were evaluated for impairment and no impairment was identified
-
The site-specific goodwill amounts originated from the
Goldcorp purchase price allocation in 2019, which was based on best estimates of each site's value and country-risk assumptions at that time
-
$1.2 billion reclamation adjustment charges primarily at Yanacocha due to increased estimated water management costs -
$427 million ofNewcrest transaction and integration costs; primarily due to the accrual of$316 million in stamp duty tax incurred in connection with the transaction
FOURTH QUARTER 2023 FINANCIAL AND PRODUCTION SUMMARY
Attributable gold production1 for the fourth quarter increased 7 percent to 1,741 thousand ounces compared to the prior year quarter, primarily due to the addition of the
Gold CAS totaled
Gold AISC per ounce2 increased 22 percent to
Attributable GEO production from other metals for the quarterremained largely flat at 289 thousand ounces from the prior year quarter, primarily due to the addition of copper production from Cadia, Red Chris and Telfer, partially offset by the ramp-up of production at Peñasquito after the resolution of the labor strike. Other metal GEO sales were slightly higher than production for the quarter, primarily due to the timing of shipments at Cadia and Telfer.
CAS from other metals totaled
AISC per GEO2 for the quarter increased 46 percent to
Average realized gold price for the quarter increased
Revenue for the quarter increased 24 percent to
Net loss from continuing operations attributable to
Adjusted net income3 for the quarter was
Adjusted EBITDA3 for the quarter increased 19 percent to
Capital expenditures4 increased 42 percent to
Consolidated operating cash flow from continuing operations decreased 39 percent to
Free Cash Flow5decreased to
Pueblo Viejo (PV)7attributable gold production was 61 thousand ounces for the quarter. Cash distributions received from the Company's equity method investment in Pueblo Viejo were
Fruta del Norte8attributable gold production is reported on a quarterly lag and will not be reported until the first quarter of 2024. Cash distributions received from the Company's equity method investment in Fruta del Norte were
FULL YEAR 2023 FINANCIAL AND PRODUCTION SUMMARY
Attributable gold production1 for the year decreased 7 percent to 5,545 thousand ounces compared to the prior year, primarily due to lower production at Peñasquito, Akyem, Merian and Boddington. In addition, the non-managed joint venture at Pueblo Viejo delivered lower production than in the prior year. These unfavorable impacts were partially offset by the addition of the
Gold CAS totaled
Gold AISC per ounce2 increased 19 percent to
Attributable GEO production from other metals for the year decreased 30 percent to 891 thousand ounces compared to the prior year, primarily due to the Peñasquito labor strike in 2023, partially offset by the addition of copper production from Cadia, Red Chris and Telfer. Other metal GEO sales were largely in line with production for the year.
CAS from other metals totaled
AISC per GEO2 for the year increased 42 percent to
Average realized gold price for the year increased
Revenue for the year remained largely flat at
Net loss from continuing operations attributable to
Adjusted net income3 for the year was
Adjusted EBITDA3 for the year decreased 7 percent to
Capital expenditures4 increased 25 percent to
Consolidated operating cash flow from continuing operations decreased 14 percent to
Free Cash Flow5decreased to
Balance sheet and liquidity remained strong in 2023, ending the year with
Pueblo Viejo (PV)8attributable gold production was 224 thousand ounces for the year. Cash distributions received from the Company's equity method investment in Pueblo Viejo were
____________________
1 Attributable gold production includes 61 thousand ounces for the fourth quarter of 2023, 52 thousand ounces for the third quarter of 2023, 65 thousand ounces for the fourth quarter of 2022, 224 thousand ounces for the year ended
2 Non-GAAP measure. See end of this release for reconciliation to Costs applicable to sales.
3 Non-GAAP measure. See end of this release for reconciliation to Net income (loss) attributable to
4 Capital expenditures refers to Additions to property plant and mine development from the Consolidated Statements of Cash Flows.
5 Non-GAAP measure. See end of this release for reconciliation to Net cash provided by operating activities.
6
7
8
9 Non-GAAP measure. See end of this release for reconciliation.
Disciplined Reinvestment into Key Near-Term Projects
Newmont’s project pipeline supports stable production with improving margins and mine life1.
-
Ahafo North (
Ghana ) expands our existing footprint inGhana with four open pit mines and a stand-alone mill located approximately 30 kilometers from the Company’s Ahafo South operations. The project is expected to add between 275,000 and 325,000 ounces per year with all-in sustaining costs of$800 to$900 per ounce for the first five full years of production (2026 - 2030). Ahafo North is the best unmined gold deposit inWest Africa with approximately 4.1 million ounces of Reserves and 1.3 million ounces of Measured, Indicated and Inferred Resources2 and significant upside potential to extend beyond Ahafo North’s current 13-year mine life. Commercial production for the project is expected in the second half of 2025. Total capital costs are estimated to be between$950 and$1,050 million . Development costs (excluding capitalized interest) since approval were$375 million , of which$163 million related to 2023.
-
Cadia Block Caves (Australia ) includes two existing panel caves to recover approximately 5.9 million ounces of Gold Reserves as well as 1.3 million tonnes of Copper Reserves. First ore has been delivered from the first panel cave (PC2-3), and development is underway at the second panel cave (PC1-2). The newly-acquired project is currently under review, and a more fulsome update on the anticipated metrics is expected to be provided in the second half of 2024. Development capital costs (excluding capitalized interest) since approval were$36 million , of which all related to 2023.
-
Cerro Negro District Expansion 1 (
Argentina ) includes the simultaneous development of the Marianas and Eastern districts to extend the mine life ofCerro Negro beyond 2030. The project is expected to improve production and provides a platform for further exploration and future growth through additional expansions. Development capital costs for the project are estimated to be between$350 and$450 million . In the third quarter of 2023,Newmont declared commercial production for San Marcos, the first of six ore bodies associated with the expansion project.
-
Tanami Expansion 2 (
Australia ) secures Tanami’s future as a long-life, low-cost producer by extending mine life beyond 2040 through the addition of a 1,460 meter hoisting shaft and supporting infrastructure to process 3.3 million tonnes per year and provide a platform for future growth. The expansion is expected to increase average annual gold production by approximately 150,000 to 200,000 ounces per year for the first five years and reduce operating costs by approximately 30 percent, bringing average all-in sustaining costs to$900 to$1,000 per ounce for Tanami (2028 - 2032). As a result of the identification of required overbreak and underbreak remediation, commercial production for the project is now expected in the second half of 2027. Total capital costs are now estimated to be between$1.7 and$1.8 billion , incorporating the required remediation work. Development costs (excluding capitalized interest) since approval were$752 million , of which$253 million related to 2023.
____________________
1 Project estimates remain subject to change based upon uncertainties, including future market conditions, macroeconomic and geopolitical conditions, changes in interest
rates, inflation, commodities and raw materials prices, supply chain disruptions, labor markets, engineering and mine plan assumptions, future funding decisions,
consideration of strategic capital allocation and other factors, which may impact estimated capital expenditures, AISC and timing of projects. See end of this release for
cautionary statement regarding forward-looking statements.
2 Total resources presented for Ahafo North includes Measured and Indicated resources of 1 million gold ounces and Inferred resources of 300 thousand gold ounces. See cautionary statement at the end of this release.
2024 Outlook Underpinned by Optimized Tier 1 Portfolio
Based on a comprehensive review undertaken following the
PRODUCTION AND COST OUTLOOK
Guidance Metric |
2024E |
Attributable Gold Production (Koz) |
|
Managed Tier 1 Portfolio |
4,100 |
Non-Managed Tier 1 Portfolio |
1,530 |
Total Tier 1 Portfolio |
5,630 |
Non-Core Assets |
1,300 |
Total |
6,930 |
Attributable Gold CAS ($/oz) |
|
Managed Tier 1 Portfolio |
980 |
Non-Managed Tier 1 Portfolio |
1,130 |
Total Tier 1 Portfolio |
1,000 |
Non-Core Assets |
1,400 |
Total |
1,050 |
Attributable Gold AISC ($/oz) |
|
Managed Tier 1 Portfolio |
1,250 |
Non-Managed Tier 1 Portfolio |
1,440 |
Total Tier 1 Portfolio |
1,300 |
Non-Core Assets |
1,750 |
Total |
1,400 |
*Consolidated basis
Costs in 2024 are expected to remain in line with 2023, with CAS of approximately of
2024 GOLD PRODUCTION SEASONALITY OUTLOOK
H1 2024E |
H2 2024E |
47% |
53% |
Gold production for 2024 is expected to be approximately 47% weighted to the first half of the year. The increase in production in the second half of the year is expected to be driven by Ahafo and Tanami as well as the non-managed
CO-PRODUCT PRODUCTION AND COST OUTLOOK
Guidance Metric |
2024E |
Copper
( |
|
Copper Production - Tier 1 Portfolio (ktonne) |
144 |
Copper Production - Non-Core Assets (ktonne) |
8 |
Total |
152 |
Copper CAS - Tier 1 Portfolio ($/tonne) |
|
Copper CAS - Non-Core Assets ($/tonne) |
|
Total |
|
Copper AISC - Tier 1 Portfolio ($/tonne) |
|
Copper AISC - Non-Core Assets ($/tonne) |
|
Total |
|
Silver
( |
|
Silver Production (Moz) |
34 |
Silver CAS ($/oz)** |
|
Silver AISC ($/oz)** |
|
Lead
( |
|
Lead Production (ktonne) |
95 |
Lead CAS ($/tonne)** |
|
Lead AISC ($/tonne)** |
|
Zinc
( |
|
Zinc Production (ktonne) |
245 |
Zinc CAS ($/tonne)** |
|
Zinc AISC ($/tonne)** |
|
*Co-product metal pricing assumptions in imperial units equate to Copper (
**Consolidated basis
In 2024, the addition of Cadia and Red Chris from the acquisition of
Refer to the 2024 Production and Cost Outlook by Site below for additional details.
CAPITAL OUTLOOK
Guidance Metric |
2024E |
Sustaining Capital ($M) |
|
Managed Tier 1 Portfolio |
1,210 |
Non-Managed Tier 1 Portfolio |
290 |
Total Tier 1 Portfolio |
1,500 |
Non-Core Assets |
300 |
|
1,800 |
|
|
Managed Tier 1 Portfolio |
1,070 |
Non-Managed Tier 1 Portfolio |
130 |
Total Tier 1 Portfolio |
1,200 |
Non-Core Assets |
100 |
|
1,300 |
*Sustaining capital is presented on an attributable basis; Capital outlook excludes amounts attributable to the Pueblo Viejo joint venture
Sustaining capital is expected to be approximately
Development capital is expected to be approximately
Development capital estimates exclude contributions to support Newmont’s 40% interest in the Pueblo Viejo expansion, which is accounted for as an equity method investment.
EXPLORATION AND ADVANCED PROJECTS OUTLOOK
Guidance Metric |
2024E |
Exploration & Advanced Projects ($M) |
|
In 2024, investment in exploration and advanced projects is expected to decrease to approximately
CONSOLIDATED EXPENSE OUTLOOK
Guidance Metric |
2024E |
General & Administrative ($M) |
|
Interest Expense ($M) |
|
Depreciation & Amortization ($M) |
|
Adjusted Tax Rate a,b |
34% |
a The adjusted tax rate excludes certain items such as tax valuation allowance adjustments.
b Assuming average prices of
The 2024 outlook for general and administrative costs is expected to increase slightly to
ASSUMPTIONS AND SENSITIVITIES
|
Assumption |
Change (-/+) |
Revenue and Cost Impact ($M)** |
|
|
|
|
Tier 1 Portfolio |
Total |
Gold ($/oz) |
|
|
|
|
Australian Dollar |
|
|
|
|
Canadian Dollar |
|
|
|
|
Oil ($/bbl) |
|
|
|
|
Copper ($/tonne)* |
|
|
|
|
Silver ($/oz) |
|
|
|
|
Lead ($/tonne)* |
|
|
|
|
Zinc ($/tonne)* |
|
|
|
|
*Co-product metal pricing assumptions in imperial units equate to Copper (
** Impacts are presented on a pretax basis.
Assuming a 34 percent incremental tax rate, a
2024 Production and Cost Outlook by Site
Managed Tier 1 Portfolio
Boddington
2024E |
Production |
CAS ($/unit) |
AISC ($/unit) |
Gold (Koz) |
575 |
|
|
Copper (ktonne) |
37 |
|
|
Gold production at Boddington is expected to decrease in 2024 due to lower grade ore as the site progresses the current laybacks in the North and South pits, positioning the site to increase production in 2026 and beyond. Copper production will also be impacted in 2024 due to lower grade as a result of the increased stripping.
Gold and copper unit costs at Boddington are expected to increase in 2024 due to lower production volumes.
Tanami
2024E |
Production (Koz) |
CAS ($/oz) |
AISC ($/oz) |
Gold |
400 |
|
|
Tanami production is expected to decrease in 2024 due to lower grade from deeper in the underground mine as the site continues to progress the Tanami Expansion 2 project.
Tanami unit costs are expected to be impacted by lower production volumes and higher direct costs. In addition, AISC is expected to increase due to higher sustaining capital spend.
Cadia
2024E |
Production |
CAS ($/unit) |
AISC ($/unit) |
Gold (Koz) |
370 |
|
|
Copper (ktonne) |
80 |
|
|
Cadia was acquired on
Lihir
2024E |
Production (Koz) |
CAS ($/oz) |
AISC ($/oz) |
Gold |
630 |
1,050 |
1,270 |
Lihir was acquired on
Ahafo
2024E |
Production (Koz) |
CAS ($/oz) |
AISC ($/oz) |
Gold |
725 |
|
|
Ahafo production is expected to increase in 2024 due to higher open pit grade and strong underground mining rates at Subika. The site remains on track to reach full processing rates by the end of the second quarter of 2024 after the planned delivery of the replacement girth gear.
Ahafo unit costs are expected to improve in 2024 due to higher production volumes.
Peñasquito
2024E |
Production |
CAS ($/unit) |
AISC ($/unit) |
Gold (Koz) |
250 |
|
1,030 |
|
34 |
|
|
Lead (ktonne) |
95 |
|
|
Zinc (ktonne) |
245 |
|
|
Gold production at Peñasquito is expected to increase in 2024, as operations have fully ramped up following the successful resolution of the strike in
Co-product production at Peñasquito is expected to increase in 2024 due to higher silver, lead and zinc content delivered from the Chile Colorado pit as part of the planned sequence at this polymetallic mine.
Unit costs at Peñasquito are expected to improve due to higher production volumes for all metals from a full year of operations.
2024E |
Production (Koz) |
CAS ($/oz) |
AISC ($/oz) |
Gold |
290 |
|
|
Yanacocha
2024E |
Production (Koz) |
CAS ($/oz) |
AISC ($/oz) |
Gold |
290 |
|
|
Yanacocha continues to deliver leach-only production, with increased production expected in 2024 due to higher leach recoveries from the use of injection leaching.
Yanacocha unit costs are expected to be higher in 2024 due to higher direct costs and unfavorable inventory changes, with AISC also expected to be impacted by higher advanced projects spend.
Merian
2024E |
Production (Koz) |
CAS ($/oz) |
AISC ($/oz) |
Gold |
220 |
|
|
Merian is expected to deliver lower production in 2024 due to lower mill head grade and throughput.
Merian unit costs are expected to be impacted by lower production volumes due to planned mine sequencing.
Brucejack
2024E |
Production (Koz) |
CAS ($/oz) |
AISC ($/oz) |
Gold |
310 |
|
|
Brucejack was acquired on
Red Chris
2024E |
Production |
CAS ($/unit) |
AISC ($/unit) |
Gold (Koz) |
40 |
|
|
Copper (ktonne) |
27 |
|
|
Red Chris was acquired on
Non-Managed Tier 1 Portfolio
2024E |
Production (Koz) |
CAS ($/oz) |
AISC ($/oz) |
Gold |
1,080 |
|
|
Production, CAS and AISC for the Company’s 38.5 percent ownership interest in NGM as provided by Barrick Gold Corporation.
Pueblo Viejo
2024E |
Production (Koz) |
Gold |
300 |
Attributable production reflects Newmont’s 40 percent interest in Pueblo Viejo, which is accounted for as an equity method investment.
Fruta Del Norte
2024E |
Production (Koz) |
Gold |
150 |
Attributable production reflects
2024 Site Outlook a
2024 Outlook |
Consolidated Production (Koz) |
Attributable Production (Koz) |
Consolidated CAS ($/oz) |
Consolidated A ll-In Sustaining Costs b ($/oz) |
Attributable Sustaining Capital Expenditures ($M) |
Attributable Development Capital Expenditures ($M) |
Managed Tier 1 Portfolio |
|
|
|
|
|
|
Boddington |
575 |
575 |
1,150 |
1,420 |
145 |
— |
Tanami |
400 |
400 |
900 |
1,430 |
170 |
340 |
Cadia |
370 |
370 |
620 |
1,150 |
305 |
260 |
Lihir |
630 |
630 |
1,050 |
1,270 |
105 |
— |
Ahafo |
725 |
725 |
860 |
1,060 |
110 |
— |
Ahafo North |
— |
— |
— |
— |
— |
290 |
Peñasquito |
250 |
250 |
780 |
1,030 |
145 |
— |
|
290 |
290 |
860 |
1,110 |
50 |
130 |
Yanacocha |
290 |
290 |
1,180 |
1,370 |
25 |
50 |
Merianc |
295 |
220 |
1,280 |
1,570 |
40 |
— |
Brucejack |
310 |
310 |
1,130 |
1,370 |
50 |
— |
Red Chris |
40 |
40 |
1,120 |
1,530 |
65 |
— |
|
|
|
|
|
|
|
Non-Managed Tier 1 Portfolio |
|
|
|
|
|
|
|
1,080 |
1,080 |
1,130 |
1,440 |
290 |
130 |
Pueblo Viejoe |
— |
300 |
— |
— |
— |
— |
Fruta Del Nortef |
— |
150 |
— |
— |
— |
— |
|
|
|
|
|
|
|
Non-Core Assets |
|
|
|
|
|
|
Telfer |
230 |
230 |
2,180 |
2,470 |
35 |
— |
Akyem |
170 |
170 |
1,780 |
2,100 |
15 |
— |
CC&V |
170 |
170 |
1,270 |
1,610 |
25 |
— |
Porcupine |
270 |
270 |
1,090 |
1,510 |
75 |
100 |
Éléonore |
270 |
270 |
1,080 |
1,500 |
75 |
— |
Musselwhite |
190 |
190 |
1,060 |
1,620 |
75 |
— |
|
|
|
|
|
|
|
Co-Product Production |
|
|
|
|
|
|
Boddington - Copper (ktonne) |
37 |
37 |
6,020 |
7,600 |
— |
— |
Cadia - Copper (ktonne) |
80 |
80 |
3,600 |
6,580 |
— |
— |
Peñasquito - |
34 |
34 |
11.00 |
15.40 |
— |
— |
Peñasquito - Lead (ktonne) |
95 |
95 |
1,220 |
1,570 |
— |
— |
Peñasquito - Zinc (ktonne) |
245 |
245 |
1,550 |
2,300 |
— |
— |
Red Chris - Copper (ktonne) |
27 |
27 |
6,440 |
9,570 |
— |
— |
Telfer - Copper (ktonne) |
8 |
8 |
11,050 |
12,540 |
— |
— |
a 2024 outlook projections are considered forward-looking statements and represent management’s good faith estimates or expectations of future production results as of
b All-in sustaining costs (AISC) as used in the Company’s Outlook is a non-GAAP metric; see below for further information and reconciliation to consolidated 2024 CAS outlook.
c Consolidated production for Merian is presented on a total production basis for the mine site; attributable production represents a 75% interest for Merian.
d Represents the ownership interest in the Nevada Gold Mines (NGM) joint venture. NGM is owned 38.5% by
e Attributable production includes Newmont’s 40% interest in Pueblo Viejo, which is accounted for as an equity method investment.
f Attributable production includes Newmont’s 32% interest in Lundin Gold, who wholly owns and operates the Fruta del Norte mine, which is accounted for as an equity method investment on a quarterly-lag.
|
Three Months Ended |
|
Year Ended |
||||||||
Operating Results |
2023 |
2022 |
% Change |
|
2023 |
2022 |
% Change |
||||
Attributable Sales (koz) |
|
|
|
|
|
|
|
||||
Attributable gold ounces sold (1) |
|
1,726 |
|
1,581 |
9 % |
|
|
5,340 |
|
5,696 |
(6) % |
Attributable gold equivalent ounces sold |
|
321 |
|
311 |
3 % |
|
|
896 |
|
1,275 |
(30) % |
|
|
|
|
|
|
|
|
||||
Average Realized Price ($/oz, $/lb) |
|
|
|
|
|
|
|
||||
Average realized gold price |
$ |
2,004 |
$ |
1,758 |
14 % |
|
$ |
1,954 |
$ |
1,792 |
9 % |
Average realized copper price |
$ |
3.69 |
$ |
4.12 |
(10) % |
|
$ |
3.71 |
$ |
3.69 |
1 % |
Average realized silver price |
$ |
19.45 |
$ |
20.42 |
(5) % |
|
$ |
19.97 |
$ |
18.45 |
8 % |
Average realized lead price |
$ |
0.90 |
$ |
0.87 |
3 % |
|
$ |
0.90 |
$ |
0.91 |
(1) % |
Average realized zinc price |
$ |
3.71 |
$ |
1.12 |
231 % |
|
$ |
0.96 |
$ |
1.34 |
(28) % |
|
|
|
|
|
|
|
|
||||
Attributable Production (koz) |
|
|
|
|
|
|
|
||||
CC&V |
|
38 |
|
57 |
(33) % |
|
|
172 |
|
182 |
(5) % |
Musselwhite |
|
50 |
|
58 |
(14) % |
|
|
180 |
|
173 |
4 % |
Porcupine |
|
70 |
|
79 |
(11) % |
|
|
260 |
|
280 |
(7) % |
Éléonore |
|
68 |
|
67 |
1 % |
|
|
232 |
|
215 |
8 % |
Red Chris |
|
5 |
|
— |
— % |
|
|
5 |
|
— |
— % |
Brucejack |
|
29 |
|
— |
— % |
|
|
29 |
|
— |
— % |
Peñasquito |
|
20 |
|
126 |
(84) % |
|
|
143 |
|
566 |
(75) % |
Merian (75%) |
|
78 |
|
90 |
(13) % |
|
|
242 |
|
302 |
(20) % |
|
|
83 |
|
69 |
20 % |
|
|
269 |
|
278 |
(3) % |
Yanacocha (2) |
|
68 |
|
58 |
17 % |
|
|
276 |
|
230 |
20 % |
Boddington |
|
156 |
|
209 |
(25) % |
|
|
745 |
|
798 |
(7) % |
Tanami |
|
136 |
|
129 |
5 % |
|
|
448 |
|
484 |
(7) % |
Cadia |
|
97 |
|
— |
— % |
|
|
97 |
|
— |
— % |
Telfer |
|
43 |
|
— |
— % |
|
|
43 |
|
— |
— % |
Lihir |
|
134 |
|
— |
— % |
|
|
134 |
|
— |
— % |
Ahafo |
|
183 |
|
177 |
3 % |
|
|
581 |
|
574 |
1 % |
Akyem |
|
100 |
|
122 |
(18) % |
|
|
295 |
|
420 |
(30) % |
NGM |
|
322 |
|
324 |
(1) % |
|
|
1,170 |
|
1,169 |
— % |
Total Gold (excluding equity method investments) |
|
1,680 |
|
1,565 |
7 % |
|
|
5,321 |
|
5,671 |
(6) % |
Pueblo Viejo (40%) (3) |
|
61 |
|
65 |
(6) % |
|
|
224 |
|
285 |
(21) % |
Fruta Del Norte (32%) (4) |
|
— |
|
— |
— % |
|
|
— |
|
— |
— % |
Total Gold Attributable Production |
|
1,741 |
|
1,630 |
7 % |
|
|
5,545 |
|
5,956 |
(7) % |
|
|
|
|
|
|
|
|
||||
Red Chris |
|
20 |
|
— |
— % |
|
|
20 |
|
— |
— % |
Peñasquito |
|
116 |
|
229 |
(49) % |
|
|
529 |
|
1,048 |
(50) % |
Boddington |
|
56 |
|
67 |
(16) % |
|
|
245 |
|
227 |
8 % |
Cadia |
|
90 |
|
— |
— % |
|
|
90 |
|
— |
— % |
Telfer |
|
7 |
|
— |
— % |
|
|
7 |
|
— |
— % |
Total GEO Attributable Production |
|
289 |
|
296 |
(2) % |
|
|
891 |
|
1,275 |
(30) % |
|
|
|
|
|
|
|
|
||||
CAS Consolidated ($/oz, $/GEO) |
|
|
|
|
|
|
|
||||
CC&V |
$ |
1,122 |
$ |
1,390 |
(19) % |
|
$ |
1,156 |
$ |
1,302 |
(11) % |
Musselwhite |
$ |
1,068 |
$ |
892 |
20 % |
|
$ |
1,186 |
$ |
1,135 |
4 % |
Porcupine |
$ |
1,186 |
$ |
918 |
29 % |
|
$ |
1,167 |
$ |
1,004 |
16 % |
Éléonore |
$ |
1,224 |
$ |
1,050 |
17 % |
|
$ |
1,263 |
$ |
1,228 |
3 % |
Red Chris |
$ |
905 |
$ |
— |
— % |
|
$ |
905 |
$ |
— |
— % |
Brucejack |
$ |
1,898 |
$ |
— |
— % |
|
$ |
1,898 |
$ |
— |
— % |
Peñasquito |
$ |
1,306 |
$ |
722 |
81 % |
|
$ |
1,219 |
$ |
771 |
58 % |
Merian (75%) |
$ |
1,155 |
$ |
837 |
38 % |
|
$ |
1,207 |
$ |
915 |
32 % |
|
$ |
1,132 |
$ |
1,067 |
6 % |
|
$ |
1,257 |
$ |
1,007 |
25 % |
Yanacocha (2) |
$ |
975 |
$ |
1,639 |
(41) % |
|
$ |
1,069 |
$ |
1,254 |
(15) % |
Boddington |
$ |
941 |
$ |
816 |
15 % |
|
$ |
847 |
$ |
802 |
6 % |
Tanami |
$ |
702 |
$ |
768 |
(9) % |
|
$ |
759 |
$ |
675 |
12 % |
Cadia |
$ |
1,079 |
$ |
— |
— % |
|
$ |
1,079 |
$ |
— |
— % |
Telfer |
$ |
1,882 |
$ |
— |
— % |
|
$ |
1,882 |
$ |
— |
— % |
Lihir |
$ |
1,117 |
$ |
— |
— % |
|
$ |
1,117 |
$ |
— |
— % |
Ahafo |
$ |
924 |
$ |
1,002 |
(8) % |
|
$ |
947 |
$ |
990 |
(4) % |
Akyem |
$ |
877 |
$ |
977 |
(10) % |
|
$ |
931 |
$ |
804 |
16 % |
NGM |
$ |
1,125 |
$ |
934 |
20 % |
|
$ |
1,070 |
$ |
989 |
8 % |
Total Gold CAS (5) |
$ |
1,086 |
$ |
940 |
16 % |
|
$ |
1,050 |
$ |
933 |
13 % |
Total Gold CAS (by-product) (5) |
$ |
1,060 |
$ |
876 |
21 % |
|
$ |
1,011 |
$ |
855 |
18 % |
|
|
|
|
|
|
|
|
||||
Red Chris |
$ |
1,020 |
$ |
— |
— % |
|
$ |
1,020 |
$ |
— |
— % |
Peñasquito |
$ |
1,602 |
$ |
866 |
85 % |
|
$ |
1,283 |
$ |
828 |
55 % |
Boddington |
$ |
944 |
$ |
823 |
15 % |
|
$ |
830 |
$ |
782 |
6 % |
Cadia |
$ |
1,017 |
$ |
— |
— % |
|
$ |
1,017 |
$ |
— |
— % |
Telfer |
$ |
1,703 |
$ |
— |
— % |
|
$ |
1,703 |
$ |
— |
— % |
Total GEO CAS |
$ |
1,254 |
$ |
857 |
46 % |
|
$ |
1,127 |
$ |
819 |
38 % |
|
|
|
|
|
|
|
|
||||
AISC Consolidated ($/oz, $/GEO) |
|
|
|
|
|
|
|
||||
CC&V |
$ |
1,793 |
$ |
1,783 |
1 % |
|
$ |
1,644 |
$ |
1,697 |
(3) % |
Musselwhite |
$ |
1,771 |
$ |
1,355 |
31 % |
|
$ |
1,843 |
$ |
1,531 |
20 % |
Porcupine |
$ |
1,665 |
$ |
1,188 |
40 % |
|
$ |
1,577 |
$ |
1,248 |
26 % |
Éléonore |
$ |
1,796 |
$ |
1,426 |
26 % |
|
$ |
1,838 |
$ |
1,599 |
15 % |
Red Chris |
$ |
1,439 |
$ |
— |
— % |
|
$ |
1,439 |
$ |
— |
— % |
Brucejack |
$ |
2,646 |
$ |
— |
— % |
|
$ |
2,646 |
$ |
— |
— % |
Peñasquito |
$ |
1,659 |
$ |
884 |
88 % |
|
$ |
1,587 |
$ |
968 |
64 % |
Merian (75%) |
$ |
1,454 |
$ |
1,043 |
39 % |
|
$ |
1,541 |
$ |
1,105 |
39 % |
|
$ |
1,412 |
$ |
1,300 |
9 % |
|
$ |
1,509 |
$ |
1,262 |
20 % |
Yanacocha (2) |
$ |
1,198 |
$ |
1,833 |
(35) % |
|
$ |
1,266 |
$ |
1,477 |
(14) % |
Boddington |
$ |
1,172 |
$ |
922 |
27 % |
|
$ |
1,067 |
$ |
921 |
16 % |
Tanami |
$ |
1,046 |
$ |
1,044 |
— % |
|
$ |
1,060 |
$ |
960 |
10 % |
Cadia |
$ |
1,271 |
$ |
— |
— % |
|
$ |
1,271 |
$ |
— |
— % |
Telfer |
$ |
1,988 |
$ |
— |
— % |
|
$ |
1,988 |
$ |
— |
— % |
Lihir |
$ |
1,517 |
$ |
— |
— % |
|
$ |
1,517 |
$ |
— |
— % |
Ahafo |
$ |
1,114 |
$ |
1,202 |
(7) % |
|
$ |
1,222 |
$ |
1,178 |
4 % |
Akyem |
$ |
1,110 |
$ |
1,157 |
(4) % |
|
$ |
1,210 |
$ |
972 |
24 % |
|
$ |
1,482 |
$ |
1,186 |
25 % |
|
$ |
1,397 |
$ |
1,220 |
15 % |
Total Gold AISC (5) |
$ |
1,485 |
$ |
1,215 |
22 % |
|
$ |
1,444 |
$ |
1,211 |
19 % |
Total Gold AISC (by-product) (5) |
$ |
1,540 |
$ |
1,211 |
27 % |
|
$ |
1,480 |
$ |
1,198 |
24 % |
|
|
|
|
|
|
|
|
||||
Red Chris |
$ |
1,660 |
$ |
— |
— % |
|
$ |
1,660 |
$ |
— |
— % |
Peñasquito |
$ |
2,084 |
$ |
1,181 |
76 % |
|
$ |
1,752 |
$ |
1,112 |
58 % |
Boddington |
$ |
1,181 |
$ |
954 |
24 % |
|
$ |
1,067 |
$ |
894 |
19 % |
Cadia |
$ |
1,342 |
$ |
— |
— % |
|
$ |
1,342 |
$ |
— |
— % |
Telfer |
$ |
2,580 |
$ |
— |
— % |
|
$ |
2,580 |
$ |
— |
— % |
Total GEO AISC (5) |
$ |
1,697 |
$ |
1,166 |
46 % |
|
$ |
1,577 |
$ |
1,114 |
42 % |
(1) |
|
Attributable gold ounces sold excludes ounces related to the Pueblo Viejo mine, which is 40% owned by |
(2) |
|
The Company recognized amounts attributable to noncontrolling interest for Yanacocha during the period prior to acquiring Sumitomo Corporation's 5% interest in the second quarter of 2022. |
(3) |
|
Represents attributable gold from Pueblo Viejo, which is accounted for as an equity method investment. Attributable gold ounces produced at Pueblo Viejo are not included in attributable gold ounces sold, as noted in footnote (1). Income and expenses of equity method investments are included in Equity income (loss) of affiliates. |
(4) |
|
Represents attributable gold from |
(5) |
|
Non-GAAP measure. See end of this release for reconciliation. |
CONSOLIDATED STATEMENTS OF OPERATIONS |
|||||||||||||||
|
Three Months Ended D ecember 31, |
Year Ended D ecember 31, |
|||||||||||||
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
(in millions, except per share) |
||||||||||||||
Sales |
$ |
3,957 |
|
|
$ |
3,200 |
|
|
$ |
11,812 |
|
|
$ |
11,915 |
|
|
|
|
|
|
|
|
|
||||||||
Costs and expenses |
|
|
|
|
|
|
|
||||||||
Costs applicable to sales (1) |
|
2,303 |
|
|
|
1,780 |
|
|
|
6,699 |
|
|
|
6,468 |
|
Depreciation and amortization |
|
624 |
|
|
|
571 |
|
|
|
2,051 |
|
|
|
2,185 |
|
Reclamation and remediation |
|
1,235 |
|
|
|
758 |
|
|
|
1,533 |
|
|
|
921 |
|
Exploration |
|
73 |
|
|
|
62 |
|
|
|
265 |
|
|
|
231 |
|
Advanced projects, research and development |
|
68 |
|
|
|
60 |
|
|
|
200 |
|
|
|
229 |
|
General and administrative |
|
84 |
|
|
|
66 |
|
|
|
299 |
|
|
|
276 |
|
Impairment charges |
|
1,881 |
|
|
|
1,317 |
|
|
|
1,891 |
|
|
|
1,320 |
|
Other expense, net |
|
441 |
|
|
|
17 |
|
|
|
517 |
|
|
|
82 |
|
|
|
6,709 |
|
|
|
4,631 |
|
|
|
13,455 |
|
|
|
11,712 |
|
Other income (expense): |
|
|
|
|
|
|
|
||||||||
Other income (loss), net |
|
(210 |
) |
|
|
101 |
|
|
|
(86 |
) |
|
|
(27 |
) |
Interest expense, net of capitalized interest of |
|
(80 |
) |
|
|
(53 |
) |
|
|
(242 |
) |
|
|
(227 |
) |
|
|
(290 |
) |
|
|
48 |
|
|
|
(328 |
) |
|
|
(254 |
) |
Income (loss) before income and mining tax and other items |
|
(3,042 |
) |
|
|
(1,383 |
) |
|
|
(1,971 |
) |
|
|
(51 |
) |
Income and mining tax benefit (expense) |
|
(117 |
) |
|
|
(112 |
) |
|
|
(566 |
) |
|
|
(455 |
) |
Equity income (loss) of affiliates |
|
19 |
|
|
|
26 |
|
|
|
63 |
|
|
|
107 |
|
Net income (loss) from continuing operations |
|
(3,140 |
) |
|
|
(1,469 |
) |
|
|
(2,474 |
) |
|
|
(399 |
) |
Net income (loss) from discontinued operations |
|
11 |
|
|
|
11 |
|
|
|
26 |
|
|
|
30 |
|
Net income (loss) |
|
(3,129 |
) |
|
|
(1,458 |
) |
|
|
(2,448 |
) |
|
|
(369 |
) |
Net loss (income) attributable to noncontrolling interests |
|
(10 |
) |
|
|
(19 |
) |
|
|
(27 |
) |
|
|
(60 |
) |
Net income (loss) attributable to |
$ |
(3,139 |
) |
|
$ |
(1,477 |
) |
|
$ |
(2,475 |
) |
|
$ |
(429 |
) |
|
|
|
|
|
|
|
|
||||||||
Net income (loss) attributable to |
|
|
|
|
|
|
|
||||||||
Continuing operations |
$ |
(3,150 |
) |
|
$ |
(1,488 |
) |
|
$ |
(2,501 |
) |
|
$ |
(459 |
) |
Discontinued operations |
|
11 |
|
|
|
11 |
|
|
|
26 |
|
|
|
30 |
|
|
$ |
(3,139 |
) |
|
$ |
(1,477 |
) |
|
$ |
(2,475 |
) |
|
$ |
(429 |
) |
|
|
|
|
|
|
|
|
||||||||
Weighted average common shares (millions): |
|
|
|
|
|
|
|
||||||||
Basic |
|
978 |
|
|
|
794 |
|
|
|
841 |
|
|
|
794 |
|
Effect of employee stock-based awards |
|
1 |
|
|
|
1 |
|
|
|
— |
|
|
|
1 |
|
Diluted |
|
979 |
|
|
|
795 |
|
|
|
841 |
|
|
|
795 |
|
|
|
|
|
|
|
|
|
||||||||
Net income (loss) per common share |
|
|
|
|
|
|
|
||||||||
Basic: |
|
|
|
|
|
|
|
||||||||
Continuing operations |
$ |
(3.22 |
) |
|
$ |
(1.87 |
) |
|
$ |
(2.97 |
) |
|
$ |
(0.58 |
) |
Discontinued operations |
|
0.01 |
|
|
|
0.01 |
|
|
|
0.03 |
|
|
|
0.04 |
|
|
$ |
(3.21 |
) |
|
$ |
(1.86 |
) |
|
$ |
(2.94 |
) |
|
$ |
(0.54 |
) |
Diluted: (2) |
|
|
|
|
|
|
|
||||||||
Continuing operations |
$ |
(3.22 |
) |
|
$ |
(1.87 |
) |
|
$ |
(2.97 |
) |
|
$ |
(0.58 |
) |
Discontinued operations |
|
0.01 |
|
|
|
0.01 |
|
|
|
0.03 |
|
|
|
0.04 |
|
|
$ |
(3.21 |
) |
|
$ |
(1.86 |
) |
|
$ |
(2.94 |
) |
|
$ |
(0.54 |
) |
(1) |
|
Excludes Depreciation and amortization and Reclamation and remediation. |
(2) |
|
For the years and quarters ended |
CONSOLIDATED BALANCE SHEETS |
|||||||
|
At 2023 |
|
At 2022 |
||||
|
(in millions) |
||||||
ASSETS |
|
|
|
||||
Cash and cash equivalents |
$ |
3,002 |
|
|
$ |
2,877 |
|
Time deposits and other investments |
|
23 |
|
|
|
880 |
|
Trade receivables |
|
734 |
|
|
|
366 |
|
Inventories |
|
1,663 |
|
|
|
979 |
|
Stockpiles and ore on leach pads |
|
979 |
|
|
|
774 |
|
Other receivables |
|
493 |
|
|
|
324 |
|
Derivative assets |
|
198 |
|
|
|
12 |
|
Other current assets |
|
411 |
|
|
|
303 |
|
Current assets |
|
7,503 |
|
|
|
6,515 |
|
Property, plant and mine development, net |
|
37,620 |
|
|
|
24,073 |
|
Investments |
|
4,143 |
|
|
|
3,278 |
|
Stockpiles and ore on leach pads |
|
1,935 |
|
|
|
1,716 |
|
Deferred income tax assets |
|
271 |
|
|
|
173 |
|
|
|
3,001 |
|
|
|
1,971 |
|
Derivative assets |
|
444 |
|
|
|
196 |
|
Other non-current assets |
|
640 |
|
|
|
560 |
|
Total assets |
$ |
55,557 |
|
|
$ |
38,482 |
|
|
|
|
|
||||
LIABILITIES |
|
|
|
||||
Accounts payable |
$ |
960 |
|
|
$ |
633 |
|
Employee-related benefits |
|
551 |
|
|
|
399 |
|
Income and mining taxes |
|
88 |
|
|
|
199 |
|
Lease and other financing obligations |
|
114 |
|
|
|
96 |
|
Debt |
|
1,923 |
|
|
|
— |
|
Other current liabilities |
|
2,362 |
|
|
|
1,599 |
|
Current liabilities |
|
5,998 |
|
|
|
2,926 |
|
Debt |
|
6,951 |
|
|
|
5,571 |
|
Lease and other financing obligations |
|
448 |
|
|
|
465 |
|
Reclamation and remediation liabilities |
|
8,167 |
|
|
|
6,578 |
|
Deferred income tax liabilities |
|
3,030 |
|
|
|
1,809 |
|
Employee-related benefits |
|
643 |
|
|
|
342 |
|
Silver streaming agreement |
|
779 |
|
|
|
828 |
|
Other non-current liabilities |
|
316 |
|
|
|
430 |
|
Total liabilities |
|
26,332 |
|
|
|
18,949 |
|
|
|
|
|
||||
Commitments and contingencies |
|
|
|
||||
|
|
|
|
||||
EQUITY |
|
|
|
||||
Common stock - |
|
1,854 |
|
|
|
1,279 |
|
Authorized - 2,550 million and 1,280 million shares, respectively |
|
|
|
||||
Outstanding shares - 1,152 million and 793 million shares, respectively |
|
|
|
||||
|
|
(264 |
) |
|
|
(239 |
) |
Additional paid-in capital |
|
30,419 |
|
|
|
17,369 |
|
Accumulated other comprehensive income (loss) |
|
14 |
|
|
|
29 |
|
(Accumulated deficit) Retained earnings |
|
(2,976 |
) |
|
|
916 |
|
|
|
29,047 |
|
|
|
19,354 |
|
Noncontrolling interests |
|
178 |
|
|
|
179 |
|
Total equity |
|
29,225 |
|
|
|
19,533 |
|
Total liabilities and equity |
$ |
55,557 |
|
|
$ |
38,482 |
|
CONSOLIDATED STATEMENTS OF CASH FLOWS |
|||||||||||||||
|
Three Months Ended D ecember 31, |
Year Ended D ecember 31, |
|||||||||||||
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
(in millions) |
||||||||||||||
Operating activities: |
|
|
|
|
|
|
|
||||||||
Net income (loss) |
$ |
(3,129 |
) |
|
$ |
(1,458 |
) |
|
$ |
(2,448 |
) |
|
$ |
(369 |
) |
Adjustments: |
|
|
|
|
|
|
|
||||||||
Depreciation and amortization |
|
624 |
|
|
|
571 |
|
|
|
2,051 |
|
|
|
2,185 |
|
Impairment charges |
|
1,891 |
|
|
|
1,317 |
|
|
|
1,891 |
|
|
|
1,320 |
|
Net loss (income) from discontinued operations |
|
(11 |
) |
|
|
(11 |
) |
|
|
(26 |
) |
|
|
(30 |
) |
Reclamation and remediation |
|
1,219 |
|
|
|
743 |
|
|
|
1,506 |
|
|
|
892 |
|
Gain on asset and investment sales, net |
|
231 |
|
|
|
(61 |
) |
|
|
197 |
|
|
|
(35 |
) |
Deferred income taxes |
|
(61 |
) |
|
|
(133 |
) |
|
|
(64 |
) |
|
|
(278 |
) |
Stock-based compensation |
|
22 |
|
|
|
16 |
|
|
|
80 |
|
|
|
73 |
|
Change in fair value of investments |
|
5 |
|
|
|
(45 |
) |
|
|
47 |
|
|
|
46 |
|
Charges from pension settlement |
|
9 |
|
|
|
7 |
|
|
|
9 |
|
|
|
137 |
|
Other non-cash adjustments |
|
(13 |
) |
|
|
93 |
|
|
|
24 |
|
|
|
98 |
|
Net change in operating assets and liabilities |
|
(171 |
) |
|
|
(29 |
) |
|
|
(513 |
) |
|
|
(841 |
) |
Net cash provided by (used in) operating activities of continuing operations |
|
616 |
|
|
|
1,010 |
|
|
|
2,754 |
|
|
|
3,198 |
|
Net cash provided by (used in) operating activities of discontinued operations |
|
— |
|
|
|
— |
|
|
|
9 |
|
|
|
22 |
|
Net cash provided by (used in) operating activities |
|
616 |
|
|
|
1,010 |
|
|
|
2,763 |
|
|
|
3,220 |
|
|
|
|
|
|
|
|
|
||||||||
Investing activities: |
|
|
|
|
|
|
|
||||||||
Additions to property, plant and mine development |
|
(920 |
) |
|
|
(646 |
) |
|
|
(2,666 |
) |
|
|
(2,131 |
) |
Maturities of investments |
|
8 |
|
|
|
93 |
|
|
|
1,363 |
|
|
|
93 |
|
Acquisitions, net (1) |
|
668 |
|
|
|
— |
|
|
|
668 |
|
|
|
(15 |
) |
Purchases of investments |
|
(6 |
) |
|
|
(275 |
) |
|
|
(551 |
) |
|
|
(940 |
) |
Proceeds from sales of investments |
|
15 |
|
|
|
127 |
|
|
|
234 |
|
|
|
171 |
|
Contributions to equity method investees |
|
(18 |
) |
|
|
(42 |
) |
|
|
(108 |
) |
|
|
(194 |
) |
Return of investment from equity method investees |
|
6 |
|
|
|
10 |
|
|
|
36 |
|
|
|
62 |
|
Proceeds from sales of mining operations and other assets, net |
|
— |
|
|
|
3 |
|
|
|
— |
|
|
|
16 |
|
Other |
|
(2 |
) |
|
|
4 |
|
|
|
22 |
|
|
|
(45 |
) |
Net cash provided by (used in) investing activities |
|
(249 |
) |
|
|
(726 |
) |
|
|
(1,002 |
) |
|
|
(2,983 |
) |
|
|
|
|
|
|
|
|
||||||||
Financing activities: |
|
|
|
|
|
|
|
||||||||
Dividends paid to common stockholders |
|
(461 |
) |
|
|
(436 |
) |
|
|
(1,415 |
) |
|
|
(1,746 |
) |
Distributions to noncontrolling interests |
|
(43 |
) |
|
|
(51 |
) |
|
|
(150 |
) |
|
|
(191 |
) |
Funding from noncontrolling interests |
|
31 |
|
|
|
28 |
|
|
|
138 |
|
|
|
117 |
|
Payments on lease and other financing obligations |
|
(19 |
) |
|
|
(16 |
) |
|
|
(67 |
) |
|
|
(66 |
) |
Payments for Norte Abierto deferred payment obligation |
|
(55 |
) |
|
|
(2 |
) |
|
|
(64 |
) |
|
|
(8 |
) |
Payments for withholding of employee taxes related to stock-based compensation |
|
(1 |
) |
|
|
(1 |
) |
|
|
(25 |
) |
|
|
(39 |
) |
Acquisition of noncontrolling interests |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(348 |
) |
Repayment of debt |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(89 |
) |
Other |
|
10 |
|
|
|
(1 |
) |
|
|
(20 |
) |
|
|
14 |
|
Net cash provided by (used in) financing activities |
|
(538 |
) |
|
|
(479 |
) |
|
|
(1,603 |
) |
|
|
(2,356 |
) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash |
|
7 |
|
|
|
(1 |
) |
|
|
(2 |
) |
|
|
(30 |
) |
Net change in cash, cash equivalents and restricted cash |
|
(164 |
) |
|
|
(196 |
) |
|
|
156 |
|
|
|
(2,149 |
) |
Cash, cash equivalents and restricted cash at beginning of period |
|
3,264 |
|
|
|
3,140 |
|
|
|
2,944 |
|
|
|
5,093 |
|
Cash, cash equivalents and restricted cash at end of period |
$ |
3,100 |
|
|
$ |
2,944 |
|
|
$ |
3,100 |
|
|
$ |
2,944 |
|
Reconciliation of cash, cash equivalents and restricted cash: |
|
|
|
|
|
|
|
||||||||
Cash and cash equivalents |
$ |
3,002 |
|
|
$ |
2,877 |
|
|
$ |
3,002 |
|
|
$ |
2,877 |
|
Restricted cash included in Other current assets |
|
11 |
|
|
|
1 |
|
|
|
11 |
|
|
|
1 |
|
Restricted cash included in Other non-current assets |
|
87 |
|
|
|
66 |
|
|
|
87 |
|
|
|
66 |
|
Total cash, cash equivalents and restricted cash |
$ |
3,100 |
|
|
$ |
2,944 |
|
|
$ |
3,100 |
|
|
$ |
2,944 |
|
(1) |
|
Acquisitions, net is primarily related to the cash acquired in the |
Non-GAAP Financial Measures
Non-GAAP financial measures are intended to provide additional information only and do not have any standard meaning prescribed by GAAP. These measures should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP. Unless otherwise noted, we present the Non-GAAP financial measures of our continuing operations in the tables below.
Adjusted net income (loss)
Management uses Adjusted Net Income (Loss) to evaluate the Company’s operating performance and for planning and forecasting future business operations. The Company believes the use of Adjusted Net Income (Loss) allows investors and analysts to understand the results of the continuing operations of the Company and its direct and indirect subsidiaries relating to the sale of products, by excluding certain items that have a disproportionate impact on our results for a particular period. Adjustments to continuing operations are presented before tax and net of our partners’ noncontrolling interests, when applicable. The tax effect of adjustments is presented in the Tax effect of adjustments line and is calculated using the applicable tax rate. Management’s determination of the components of Adjusted Net Income (Loss) are evaluated periodically and based, in part, on a review of non-GAAP financial measures used by mining industry analysts. Net income (loss) attributable to
|
Three Months Ended D ecember 31, 2023 |
|
Year Ended D ecember 31, 2023 |
||||||||||||||||||||
|
|
|
per share data (1) |
|
|
|
per share data (1) |
||||||||||||||||
|
|
|
basic |
|
diluted |
|
|
|
basic |
|
diluted |
||||||||||||
Net income (loss) attributable to |
$ |
(3,139 |
) |
|
$ |
(3.21 |
) |
|
$ |
(3.21 |
) |
|
$ |
(2,475 |
) |
|
$ |
(2.94 |
) |
|
$ |
(2.94 |
) |
Net loss (income) attributable to |
|
(11 |
) |
|
|
(0.01 |
) |
|
|
(0.01 |
) |
|
|
(26 |
) |
|
|
(0.03 |
) |
|
|
(0.03 |
) |
Net income (loss) attributable to |
|
(3,150 |
) |
|
|
(3.22 |
) |
|
|
(3.22 |
) |
|
|
(2,501 |
) |
|
|
(2.97 |
) |
|
|
(2.97 |
) |
Impairment charges, net (3) |
|
1,878 |
|
|
|
1.92 |
|
|
|
1.92 |
|
|
|
1,888 |
|
|
|
2.25 |
|
|
|
2.25 |
|
Reclamation and remediation charges (4) |
|
1,158 |
|
|
|
1.18 |
|
|
|
1.18 |
|
|
|
1,260 |
|
|
|
1.50 |
|
|
|
1.50 |
|
|
|
427 |
|
|
|
0.44 |
|
|
|
0.44 |
|
|
|
464 |
|
|
|
0.56 |
|
|
|
0.56 |
|
(Gain) loss on asset and investment sales (6) |
|
231 |
|
|
|
0.24 |
|
|
|
0.24 |
|
|
|
197 |
|
|
|
0.23 |
|
|
|
0.23 |
|
Change in fair value of investments (7) |
|
5 |
|
|
|
— |
|
|
|
— |
|
|
|
47 |
|
|
|
0.05 |
|
|
|
0.05 |
|
Restructuring and severance (8) |
|
5 |
|
|
|
— |
|
|
|
— |
|
|
|
24 |
|
|
|
0.03 |
|
|
|
0.03 |
|
Pension settlements (9) |
|
9 |
|
|
|
0.01 |
|
|
|
0.01 |
|
|
|
9 |
|
|
|
0.01 |
|
|
|
0.01 |
|
Settlement costs (10) |
|
5 |
|
|
|
— |
|
|
|
— |
|
|
|
7 |
|
|
|
0.01 |
|
|
|
0.01 |
|
COVID-19 specific costs (11) |
|
1 |
|
|
|
— |
|
|
|
— |
|
|
|
1 |
|
|
|
— |
|
|
|
— |
|
Other (12) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(5 |
) |
|
|
— |
|
|
|
— |
|
Tax effect of adjustments (13) |
|
(565 |
) |
|
|
(0.57 |
) |
|
|
(0.57 |
) |
|
|
(613 |
) |
|
|
(0.73 |
) |
|
|
(0.73 |
) |
Valuation allowance and other tax adjustments, net (14) |
|
482 |
|
|
|
0.50 |
|
|
|
0.50 |
|
|
|
580 |
|
|
|
0.67 |
|
|
|
0.67 |
|
Adjusted net income (loss) |
$ |
486 |
|
|
$ |
0.50 |
|
|
$ |
0.50 |
|
|
$ |
1,358 |
|
|
$ |
1.61 |
|
|
$ |
1.61 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Weighted average common shares (millions): (2) |
|
|
|
978 |
|
|
|
979 |
|
|
|
|
|
841 |
|
|
|
841 |
|
(1) |
|
Per share measures may not recalculate due to rounding. |
(2) |
|
Adjusted net income (loss) per diluted share is calculated using diluted common shares, which are calculated in accordance with GAAP. For the year ended |
(3) |
|
Impairment charges, net, included in Impairment charges represents non-cash write-downs of long-lived assets and goodwill. Amount is presented net of pre-tax income (loss) attributable to noncontrolling interests of |
(4) |
|
Reclamation and remediation charges, net, included in Reclamation and remediation, represent revisions to the reclamation and remediation plans and cost estimates at the Company’s former operating properties and historic mining operations that have entered the closure phase and have no substantive future economic value. |
(5) |
|
|
(6) |
|
(Gain) loss on asset and investment sales, included in Gain on asset and investment sales, net, primarily represents the impairment loss on the abandonment of the pyrite leach plant at Peñasquito offset by the net gain recognized on the exchange of Maverix shares and warrants to Triple flag and the subsequent sale of Triple Flag shares. |
(7) |
|
Change in fair value of investments, included in Other income (loss), net, primarily represents unrealized gains and losses related to the Company's investment in current and non-current marketable and other equity securities. |
(8) |
|
Restructuring and severance, net, included in Other expense, net, primarily represents severance and related costs associated with significant organizational and operating model changes implemented by the Company. |
(9) |
|
Pension settlements, included in Other income (loss), net, primarily represents pension settlement charges related to lump sum payments to participants. |
(10) |
|
Settlement costs, included in Other expense, net, primarily represents costs related to additional employee related accruals as a result of the Australian |
(11) |
|
COVID-19 specific costs, included in Other expense, net, represents amounts distributed from the |
(12) |
|
Other, included in Other income (loss), net, primarily represents income received during the first quarter of 2023 on the favorable settlement of certain matters that were outstanding at the time of sale of the related investment in 2022. |
(13) |
|
The tax effect of adjustments, included in Income and mining tax benefit (expense), represents the tax effect of adjustments in footnotes (4) through (12), as described above, and are calculated using the applicable tax rate. |
(14) |
|
Valuation allowance and other tax adjustments, net, included in Income and mining tax benefit (expense), is recorded for items such as foreign tax credits, alternative minimum tax credits, capital losses, disallowed foreign losses, and the effects of changes in foreign currency exchange rates on deferred tax assets and deferred tax liabilities. The adjustment for the three months and year ended |
|
Three Months Ended D ecember 31, 2022 |
|
Year Ended D ecember 31, 2022 |
||||||||||||||||||||
|
|
|
per share data (1) |
|
|
|
per share data (1) |
||||||||||||||||
|
|
|
basic |
|
diluted |
|
|
|
basic |
|
diluted |
||||||||||||
Net income (loss) attributable to |
$ |
(1,477 |
) |
|
$ |
(1.86 |
) |
|
$ |
(1.86 |
) |
|
$ |
(429 |
) |
|
$ |
(0.54 |
) |
|
$ |
(0.54 |
) |
Net loss (income) attributable to |
|
(11 |
) |
|
|
(0.01 |
) |
|
|
(0.01 |
) |
|
|
(30 |
) |
|
|
(0.04 |
) |
|
|
(0.04 |
) |
Net income (loss) attributable to |
|
(1,488 |
) |
|
|
(1.87 |
) |
|
|
(1.87 |
) |
|
|
(459 |
) |
|
|
(0.58 |
) |
|
|
(0.58 |
) |
Impairment charges (3) |
|
1,317 |
|
|
|
1.66 |
|
|
|
1.66 |
|
|
|
1,320 |
|
|
|
1.66 |
|
|
|
1.66 |
|
Reclamation and remediation charges, net (4) |
|
700 |
|
|
|
0.88 |
|
|
|
0.88 |
|
|
|
713 |
|
|
|
0.90 |
|
|
|
0.90 |
|
Pension settlement (5) |
|
7 |
|
|
|
0.01 |
|
|
|
0.01 |
|
|
|
137 |
|
|
|
0.17 |
|
|
|
0.17 |
|
Change in fair value of investments (6) |
|
(45 |
) |
|
|
(0.06 |
) |
|
|
(0.06 |
) |
|
|
46 |
|
|
|
0.06 |
|
|
|
0.06 |
|
(Gain) loss on asset and investment sales (7) |
|
(61 |
) |
|
|
(0.08 |
) |
|
|
(0.08 |
) |
|
|
(35 |
) |
|
|
(0.04 |
) |
|
|
(0.04 |
) |
Settlement costs (8) |
|
2 |
|
|
|
— |
|
|
|
— |
|
|
|
22 |
|
|
|
0.03 |
|
|
|
0.03 |
|
Restructuring and severance, net (9) |
|
1 |
|
|
|
— |
|
|
|
— |
|
|
|
4 |
|
|
|
0.01 |
|
|
|
0.01 |
|
COVID-19 specific costs (10) |
|
2 |
|
|
|
— |
|
|
|
— |
|
|
|
3 |
|
|
|
— |
|
|
|
— |
|
Other (11) |
|
(3 |
) |
|
|
— |
|
|
|
— |
|
|
|
(21 |
) |
|
|
(0.03 |
) |
|
|
(0.03 |
) |
Tax effect of adjustments (12) |
|
(283 |
) |
|
|
(0.35 |
) |
|
|
(0.35 |
) |
|
|
(344 |
) |
|
|
(0.44 |
) |
|
|
(0.44 |
) |
Valuation allowance and other tax adjustments, net (13) |
|
199 |
|
|
|
0.25 |
|
|
|
0.25 |
|
|
|
82 |
|
|
|
0.11 |
|
|
|
0.11 |
|
Adjusted net income (loss) |
$ |
348 |
|
|
$ |
0.44 |
|
|
$ |
0.44 |
|
|
$ |
1,468 |
|
|
$ |
1.85 |
|
|
$ |
1.85 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Weighted average common shares (millions): (2) |
|
|
|
794 |
|
|
|
795 |
|
|
|
|
|
794 |
|
|
|
795 |
|
(1) |
|
Per share measures may not recalculate due to rounding. |
(2) |
|
Adjusted net income (loss) per diluted share is calculated using diluted common shares, which are calculated in accordance with GAAP. For the year ended |
(3) |
|
Impairment charges, included in Impairment charges represents non-cash write-downs of long-lived assets and goodwill. |
(4) |
|
Reclamation and remediation charges, net, included in Reclamation and remediation, represent revisions to reclamation and remediation plans and cost estimates at the Company’s former operating properties and historic mining operations that have entered the closure phase and have no substantive future economic value. |
(5) |
|
Pension settlements, included in Other income (loss), net, represents pension settlement charges related to the annuitization of certain defined benefit plans. |
(6) |
|
Change in fair value of investments, included in Other income (loss), net, primarily represents unrealized gains and losses related to the Company's investment in current and non-current marketable and other equity securities. |
(7) |
|
(Gain) loss on asset and investment sales, included in Other income (loss), net, primarily represents gains recognized on the sale of the investment in MARA, disposal of trucks at Boddington, and the sale of royalty interests at NGM, partially offset by the loss recognized on the sale of the La Zanja equity method investment. |
(8) |
|
Settlement costs, included in Other expense, net, primarily represents a legal settlement and a voluntary contribution made to support humanitarian efforts in |
(9) |
|
Restructuring and severance, net, included in Other expense, net, primarily represents severance and related costs associated with significant organizational and operating model changes implemented by the Company. |
(10) |
|
COVID-19 specific costs, included in Other expense, net, represents amounts distributed from the |
(11) |
|
Primarily represents for the year ended, an |
(12) |
|
The tax effect of adjustments, included in Income and mining tax benefit (expense), represents the tax effect of adjustments in footnotes (3) through (11), as described above, and are calculated using the applicable tax rate. |
(13) |
|
Valuation allowance and other tax adjustments, net, included in Income and mining tax benefit (expense), is recorded for items such as foreign tax credits, alternative minimum tax credits, capital losses, disallowed foreign losses, and the effects of changes in foreign currency exchange rates on deferred tax assets and deferred tax liabilities. The adjustment for the three months and the year ended |
Earnings before interest, taxes and depreciation and amortization and Adjusted earnings before interest, taxes and depreciation and amortization
Management uses earnings before interest, taxes and depreciation and amortization (“EBITDA”) and EBITDA adjusted for non-core or certain items that have a disproportionate impact on our results for a particular period (“Adjusted EBITDA”) as non-GAAP measures to evaluate the Company’s operating performance. EBITDA and Adjusted EBITDA do not represent, and should not be considered an alternative to, net income (loss), operating income (loss), or cash flow from operations as those terms are defined by GAAP, and do not necessarily indicate whether cash flows will be sufficient to fund cash needs. Although Adjusted EBITDA and similar measures are frequently used as measures of operations and the ability to meet debt service requirements by other companies, our calculation of Adjusted EBITDA is not necessarily comparable to such other similarly titled captions of other companies. The Company believes that Adjusted EBITDA provides useful information to investors and others in understanding and evaluating our operating results in the same manner as our management and Board of Directors. Management’s determination of the components of Adjusted EBITDA are evaluated periodically and based, in part, on a review of non-GAAP financial measures used by mining industry analysts. Net income (loss) attributable to
|
Three Months Ended D ecember 31, |
|
Year Ended D ecember 31, |
||||||||||||
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Net income (loss) attributable to |
$ |
(3,139 |
) |
|
$ |
(1,477 |
) |
|
$ |
(2,475 |
) |
|
$ |
(429 |
) |
Net income (loss) attributable to noncontrolling interests |
|
10 |
|
|
|
19 |
|
|
|
27 |
|
|
|
60 |
|
Net (income) loss from discontinued operations |
|
(11 |
) |
|
|
(11 |
) |
|
|
(26 |
) |
|
|
(30 |
) |
Equity loss (income) of affiliates |
|
(19 |
) |
|
|
(26 |
) |
|
|
(63 |
) |
|
|
(107 |
) |
Income and mining tax expense (benefit) |
|
117 |
|
|
|
112 |
|
|
|
566 |
|
|
|
455 |
|
Depreciation and amortization |
|
624 |
|
|
|
571 |
|
|
|
2,051 |
|
|
|
2,185 |
|
Interest expense, net |
|
80 |
|
|
|
53 |
|
|
|
242 |
|
|
|
227 |
|
EBITDA |
$ |
(2,338 |
) |
|
$ |
(759 |
) |
|
$ |
322 |
|
|
$ |
2,361 |
|
Adjustments: |
|
|
|
|
|
|
|
||||||||
Impairment charges (1) |
$ |
1,881 |
|
|
$ |
1,317 |
|
|
$ |
1,891 |
|
|
$ |
1,320 |
|
Reclamation and remediation charges (2) |
|
1,158 |
|
|
|
700 |
|
|
|
1,260 |
|
|
|
713 |
|
|
|
427 |
|
|
|
— |
|
|
|
464 |
|
|
|
— |
|
(Gain) loss on asset and investment sales (4) |
|
231 |
|
|
|
(61 |
) |
|
|
197 |
|
|
|
(35 |
) |
Change in fair value of investments (5) |
|
5 |
|
|
|
(45 |
) |
|
|
47 |
|
|
|
46 |
|
Restructuring and severance (6) |
|
5 |
|
|
|
1 |
|
|
|
24 |
|
|
|
4 |
|
Pension settlements (7) |
|
9 |
|
|
|
7 |
|
|
|
9 |
|
|
|
137 |
|
Settlement costs (8) |
|
5 |
|
|
|
2 |
|
|
|
7 |
|
|
|
22 |
|
COVID-19 specific costs (9) |
|
1 |
|
|
|
2 |
|
|
|
1 |
|
|
|
3 |
|
Other (10) |
|
— |
|
|
|
(3 |
) |
|
|
(5 |
) |
|
|
(21 |
) |
Adjusted EBITDA |
$ |
1,384 |
|
|
$ |
1,161 |
|
|
$ |
4,217 |
|
|
$ |
4,550 |
|
(1) |
|
Impairment charges, included in Impairment charges represents non-cash write-downs of long-lived assets and goodwill. |
(2) |
|
Reclamation and remediation charges, included in Reclamation and remediation, represent revisions to the reclamation and remediation plans and cost estimates at the Company’s former operating properties and historic mining operations that have entered the closure phase and have no substantive future economic value. |
(3) |
|
|
(4) |
|
(Gain) loss on asset and investment sales, included in Other income (loss), net, primarily represents the impairment loss on the abandonment of the pyrite leach plant at Peñasquito offset by the net gain recognized on the exchange of Maverix shares and warrants to Triple flag and the subsequent sale of Triple Flag shares in 2023; gains recognized on the sale of the investment in MARA, on disposal of trucks at Boddington, and the sale of royalty interests at NGM, partially offset by the loss recognized on the sale of the La Zanja equity method investment in 2022. |
(5) |
|
Change in fair value of investments, included in Other income (loss), net, primarily represents unrealized gains and losses related to the Company's investments in current and non-current marketable and other equity securities. |
(6) |
|
Restructuring and severance, included in Other expense, net, primarily represents severance and related costs associated with significant organizational and operating model changes implemented by the Company for all periods presented. |
(7) |
|
Pension settlements, included in Other income (loss), net, primarily represents pension settlement charges related to lump sum payments to participants in 2023 and the annuitization of certain defined benefit plans and lump sum payments to participants in 2022. |
(8) |
|
Settlement costs, included in Other expense, net, primarily represents costs related to additional employee related accruals as a result of the Australian |
(9) |
|
COVID-19 specific costs, included in Other expense, net, primarily includes amounts distributed from |
(10) |
|
Other, included in Other income (loss), net, in 2023 represents income received during the first quarter of 2023 on the favorable settlement of certain matters that were outstanding at the time of sale of the related investment in 2022. Amounts related to 2022 are primarily comprised of a reimbursement of certain historical |
Free Cash Flow
Management uses Free Cash Flow as a non-GAAP measure to analyze cash flows generated from operations. Free Cash Flow is Net cash provided by (used in) operating activities less Net cash provided by (used in) operating activities of discontinued operations less Additions to property, plant and mine development as presented on the Consolidated Statements of Cash Flows. The Company believes Free Cash Flow is also useful as one of the bases for comparing the Company’s performance with its competitors. Although Free Cash Flow and similar measures are frequently used as measures of cash flows generated from operations by other companies, the Company’s calculation of Free Cash Flow is not necessarily comparable to such other similarly titled captions of other companies.
The presentation of non-GAAP Free Cash Flow is not meant to be considered in isolation or as an alternative to net income as an indicator of the Company’s performance, or as an alternative to cash flows from operating activities as a measure of liquidity as those terms are defined by GAAP, and does not necessarily indicate whether cash flows will be sufficient to fund cash needs. The Company’s definition of Free Cash Flow is limited in that it does not represent residual cash flows available for discretionary expenditures due to the fact that the measure does not deduct the payments required for debt service and other contractual obligations or payments made for business acquisitions. Therefore, the Company believes it is important to view Free Cash Flow as a measure that provides supplemental information to the Company’s Consolidated Statements of Cash Flows.
The following table sets forth a reconciliation of Free Cash Flow, a non-GAAP financial measure, to Net cash provided by (used in) operating activities, which the Company believes to be the GAAP financial measure most directly comparable to Free Cash Flow, as well as information regarding Net cash provided by (used in) investing activities and Net cash provided by (used in) financing activities.
|
Three Months Ended D ecember 31, |
|
Year Ended D ecember 31, |
||||||||||||
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Net cash provided by (used in) operating activities |
$ |
616 |
|
|
$ |
1,010 |
|
|
$ |
2,763 |
|
|
$ |
3,220 |
|
Less: Net cash used in (provided by) operating activities of discontinued operations |
|
— |
|
|
|
— |
|
|
|
(9 |
) |
|
|
(22 |
) |
Net cash provided by (used in) operating activities of continuing operations |
|
616 |
|
|
|
1,010 |
|
|
|
2,754 |
|
|
|
3,198 |
|
Less: Additions to property, plant and mine development |
|
(920 |
) |
|
|
(646 |
) |
|
|
(2,666 |
) |
|
|
(2,131 |
) |
Free Cash Flow |
$ |
(304 |
) |
|
$ |
364 |
|
|
$ |
88 |
|
|
$ |
1,067 |
|
|
|
|
|
|
|
|
|
||||||||
Net cash provided by (used in) investing activities (1) |
$ |
(249 |
) |
|
$ |
(726 |
) |
|
$ |
(1,002 |
) |
|
$ |
(2,983 |
) |
Net cash provided by (used in) financing activities |
$ |
(538 |
) |
|
$ |
(479 |
) |
|
$ |
(1,603 |
) |
|
$ |
(2,356 |
) |
(1) |
|
Net cash provided by (used in) investing activities includes Additions to property, plant and mine development, which is included in the Company’s computation of Free Cash Flow. |
Attributable Free Cash Flow
Management uses Attributable Free Cash Flow as a non-GAAP measure to analyze cash flows generated from operations that are attributable to the Company. Attributable Free Cash Flow is Net cash provided by (used in) operating activities after deducting net cash flows from operations attributable to noncontrolling interests less Net cash provided by (used in) operating activities of discontinued operations after deducting net cash flows from discontinued operations attributable to noncontrolling interests less Additions to property, plant and mine development after deducting property, plant and mine development attributable to noncontrolling interests. The Company believes that Attributable Free Cash Flow is useful as one of the bases for comparing the Company’s performance with its competitors. Although Attributable Free Cash Flow and similar measures are frequently used as measures of cash flows generated from operations by other companies, the Company’s calculation of Attributable Free Cash Flow is not necessarily comparable to such other similarly titled captions of other companies.
The presentation of non-GAAP Attributable Free Cash Flow is not meant to be considered in isolation or as an alternative to Net income attributable to
The following tables set forth a reconciliation of Attributable Free Cash Flow, a non-GAAP financial measure, to Net cash provided by (used in) operating activities, which the Company believes to be the GAAP financial measure most directly comparable to Attributable Free Cash Flow, as well as information regarding Net cash provided by (used in) investing activities and Net cash provided by (used in) financing activities.
|
Three Months Ended |
|
Year Ended |
||||||||||||||||||||
|
Consolidated |
|
Attributable to noncontrolling interests (1) |
|
Attributable to
Stockholders |
|
Consolidated |
|
Attributable to noncontrolling interests (1) |
|
Attributable to
Stockholders |
||||||||||||
Net cash provided by (used in) operating activities |
$ |
616 |
|
|
$ |
(21 |
) |
|
$ |
595 |
|
|
$ |
2,763 |
|
|
$ |
(50 |
) |
|
$ |
2,713 |
|
Less: Net cash used in (provided by) operating activities of discontinued operations |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(9 |
) |
|
|
— |
|
|
|
(9 |
) |
Net cash provided by (used in) operating activities of continuing operations |
|
616 |
|
|
|
(21 |
) |
|
|
595 |
|
|
|
2,754 |
|
|
|
(50 |
) |
|
|
2,704 |
|
Less: Additions to property, plant and mine development (2) |
|
(920 |
) |
|
|
6 |
|
|
|
(914 |
) |
|
|
(2,666 |
) |
|
|
21 |
|
|
|
(2,645 |
) |
Free Cash Flow |
$ |
(304 |
) |
|
$ |
(15 |
) |
|
$ |
(319 |
) |
|
$ |
88 |
|
|
$ |
(29 |
) |
|
$ |
59 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net cash provided by (used in) investing activities (3) |
$ |
(249 |
) |
|
|
|
|
|
$ |
(1,002 |
) |
|
|
|
|
||||||||
Net cash provided by (used in) financing activities |
$ |
(538 |
) |
|
|
|
|
|
$ |
(1,603 |
) |
|
|
|
|
(1) |
|
Adjustment to eliminate a portion of Net cash provided by (used in) operating activities, Net cash provided by (used in) operating activities of discontinued operations and Additions to property, plant and mine development attributable to noncontrolling interests, which primarily relates to Merian (25%) for the three months and year ended |
(2) |
|
For the three months and year ended |
(3) |
|
Net cash provided by (used in) investing activities includes Additions to property, plant and mine development, which is included in the Company’s computation of Free Cash Flow. |
|
Three Months Ended |
|
Year Ended |
||||||||||||||||||||
|
Consolidated |
|
Attributable to noncontrolling interests (1) |
|
Attributable to
Stockholders |
|
Consolidated |
|
Attributable to noncontrolling interests (1) |
|
Attributable to
Stockholders |
||||||||||||
Net cash provided by (used in) operating activities |
$ |
1,010 |
|
|
$ |
(19 |
) |
|
$ |
991 |
|
|
$ |
3,220 |
|
|
$ |
(83 |
) |
|
$ |
3,137 |
|
Less: Net cash used in (provided by) operating activities of discontinued operations |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(22 |
) |
|
|
— |
|
|
|
(22 |
) |
Net cash provided by (used in) operating activities of continuing operations |
|
1,010 |
|
|
|
(19 |
) |
|
|
991 |
|
|
|
3,198 |
|
|
|
(83 |
) |
|
|
3,115 |
|
Less: Additions to property, plant and mine development (2) |
|
(646 |
) |
|
|
4 |
|
|
|
(642 |
) |
|
|
(2,131 |
) |
|
|
29 |
|
|
|
(2,102 |
) |
Free Cash Flow |
$ |
364 |
|
|
$ |
(15 |
) |
|
$ |
349 |
|
|
$ |
1,067 |
|
|
$ |
(54 |
) |
|
$ |
1,013 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net cash provided by (used in) investing activities (3) |
$ |
(726 |
) |
|
|
|
|
|
$ |
(2,983 |
) |
|
|
|
|
||||||||
Net cash provided by (used in) financing activities |
$ |
(479 |
) |
|
|
|
|
|
$ |
(2,356 |
) |
|
|
|
|
(1) |
|
Adjustment to eliminate a portion of Net cash provided by (used in) operating activities, Net cash provided by (used in) operating activities of discontinued operations and Additions to property, plant and mine development attributable to noncontrolling interests, which primarily relates to Merian (25%) for the three months and year ended |
(2) |
|
For the three months and year ended |
(3) |
|
Net cash provided by (used in) investing activities includes Additions to property, plant and mine development, which is included in the Company’s computation of Free Cash Flow. |
Net Debt
Management uses Net Debt to measure the Company’s liquidity and financial position. Net Debt is calculated as Debt and Lease and other financing obligations less Cash and cash equivalents and time deposits included in Time deposits and other investments, as presented on the Consolidated Balance Sheets. Cash and cash equivalents and time deposits are subtracted from Debt and Lease and other financing obligations as these are highly liquid, low-risk investments and could be used to reduce the Company's debt obligations. The Company believes the use of Net Debt allows investors and others to evaluate financial flexibility and strength of the Company's balance sheet. Net Debt is intended to provide additional information only and does not have any standardized meaning prescribed by GAAP and should not be considered in isolation or as a substitute for measures of liquidity prepared in accordance with GAAP. Other companies may calculate this measure differently.
The following table sets forth a reconciliation of Net Debt, a non-GAAP financial measure, to Debt and Lease and other financing obligations, which the Company believes to be the GAAP financial measures most directly comparable to Net Debt.
|
At 2023 |
|
At 2022 |
||||
Debt |
$ |
8,874 |
|
|
$ |
5,571 |
|
Lease and other financing obligations |
|
562 |
|
|
|
561 |
|
Less: Cash and cash equivalents |
|
(3,002 |
) |
|
|
(2,877 |
) |
Less: Time deposits |
|
— |
|
|
|
(829 |
) |
Net debt |
$ |
6,434 |
|
|
$ |
2,426 |
|
Costs applicable to sales per ounce/gold equivalent ounce
Costs applicable to sales per ounce/gold equivalent ounce are non-GAAP financial measures. These measures are calculated by dividing the costs applicable to sales of gold and other metals by gold ounces or gold equivalent ounces sold, respectively. These measures are calculated for the periods presented on a consolidated basis. We believe that these measures provide additional information to management, investors and others that aids in the understanding of the economics of our operations and performance compared to other producers and provides investors visibility into the direct and indirect costs related to production, excluding depreciation and amortization, on a per ounce/gold equivalent ounce basis. Costs applicable to sales per ounce/gold equivalent ounce statistics are intended to provide additional information only and do not have any standardized meaning prescribed by GAAP and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP. The measures are not necessarily indicative of operating profit or cash flow from operations as determined under GAAP. Other companies may calculate these measures differently.
The following tables reconcile these non-GAAP measures to the most directly comparable GAAP measures.
Costs applicable to sales per ounce
|
Three Months Ended D ecember 31, |
|
Year Ended D ecember 31, |
||||||||||||
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Costs applicable to sales (1)(2) |
$ |
1,900 |
|
$ |
1,513 |
|
$ |
5,689 |
|
$ |
5,423 |
||||
Gold sold (thousand ounces) |
|
1,751 |
|
|
|
1,610 |
|
|
|
5,420 |
|
|
|
5,812 |
|
Costs applicable to sales per ounce (3) |
$ |
1,086 |
|
|
$ |
940 |
|
|
$ |
1,050 |
|
|
$ |
933 |
|
(1) |
|
Includes by-product credits of |
(2) |
|
Excludes Depreciation and amortization and Reclamation and remediation. |
(3) |
|
Per ounce measures may not recalculate due to rounding. |
Costs applicable to sales per gold equivalent ounce
|
Three Months Ended D ecember 31, |
|
Year Ended D ecember 31, |
||||||||||||
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Costs applicable to sales (1)(2) |
$ |
403 |
|
$ |
267 |
|
$ |
1,010 |
|
$ |
1,045 |
||||
Gold equivalent ounces - other metals sold (thousand ounces) (3) |
|
321 |
|
|
|
311 |
|
|
|
896 |
|
|
|
1,275 |
|
Costs applicable to sales per ounce (4) |
$ |
1,254 |
|
|
$ |
857 |
|
|
$ |
1,127 |
|
|
$ |
819 |
|
(1) |
|
Includes by-product credits of |
(2) |
|
Excludes Depreciation and amortization and Reclamation and remediation. |
(3) |
|
Gold equivalent ounces is calculated as pounds or ounces produced multiplied by the ratio of the other metals price to the gold price, using Gold ( |
(4) |
|
Per ounce measures may not recalculate due to rounding. |
Costs applicable to sales per ounce for
|
Three Months Ended D ecember 31, |
|
Year Ended D ecember 31, |
||||||||||||
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Cost applicable to sales, NGM (1) |
$ |
361 |
|
$ |
300 |
|
$ |
1,249 |
|
$ |
1,153 |
||||
Gold sold (thousand ounces), NGM |
|
320 |
|
|
|
320 |
|
|
|
1,167 |
|
|
|
1,165 |
|
Costs applicable to sales per ounce, NGM (2) |
$ |
1,125 |
|
|
$ |
934 |
|
|
$ |
1,070 |
|
|
$ |
989 |
|
(1) |
|
Excludes Depreciation and amortization and Reclamation and remediation. |
(2) |
|
Per ounce measures may not recalculate due to rounding. |
All-In Sustaining Costs
Current GAAP measures used in the mining industry, such as cost of goods sold, do not capture all of the expenditures incurred to discover, develop and sustain production. Therefore,
AISC is a metric that expands on GAAP measures, such as cost of goods sold, and non-GAAP measures, such as costs applicable to sales per ounce, to provide visibility into the economics of our mining operations related to expenditures, operating performance and the ability to generate cash flow from our continuing operations. We believe that AISC is a non-GAAP measure that provides additional information to management, investors and others that aids in the understanding of the economics of our operations and performance compared to other producers and provides investors visibility by better defining the total costs associated with production.
AISC amounts are intended to provide additional information only and do not have any standardized meaning prescribed by GAAP and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP. The measures are not necessarily indicative of operating profit or cash flow from operations as determined under GAAP. Other companies may calculate these measures differently as a result of differences in the underlying accounting principles, policies applied and in accounting frameworks such as in IFRS, or by reflecting the benefit from selling non-gold metals as a reduction to AISC. Differences may also arise related to definitional differences of sustaining versus development (i.e. non-sustaining) activities based upon each company’s internal policies.
The following disclosure provides information regarding the adjustments made in determining the All-In Sustaining Costs measure:
Costs applicable to sales. Includes all direct and indirect costs related to current production incurred to execute the current mine plan. We exclude certain exceptional or unusual amounts from CAS, such as significant revisions to recovery amounts. CAS includes by-product credits from certain metals obtained during the process of extracting and processing the primary ore-body. CAS is accounted for on an accrual basis and excludes Depreciation and amortization and Reclamation and remediation, which is consistent with our presentation of CAS on the Consolidated Statements of Operations. In determining AISC, only the CAS associated with producing and selling an ounce of gold is included in the measure. Therefore, the amount of gold CAS included in AISC is derived from the CAS presented in the Company’s Consolidated Statements of Operations less the amount of CAS attributable to the production of other metals. The other metals' CAS at those mine sites is disclosed in Note 4 of the Consolidated Financial Statements. The allocation of CAS between gold and other metals is based upon the relative sales value of gold and other metals produced during the period.
Reclamation costs. Includes accretion expense related to reclamation liabilities and the amortization of the related ARC for the Company’s operating properties. Accretion related to the reclamation liabilities and the amortization of the ARC assets for reclamation does not reflect annual cash outflows but are calculated in accordance with GAAP. The accretion and amortization reflect the periodic costs of reclamation associated with current production and are therefore included in the measure. The allocation of these costs to gold and other metals is determined using the same allocation used in the allocation of CAS between gold and other metals.
Advanced projects, research and development and exploration. Includes incurred expenses related to projects that are designed to sustain current production and exploration. We note that as current resources are depleted, exploration and advanced projects are necessary for us to replace the depleting reserves or enhance the recovery and processing of the current reserves to sustain production at existing operations. As these costs relate to sustaining our production, and are considered a continuing cost of a mining company, these costs are included in the AISC measure. These costs are derived from the Advanced projects, research and development and Exploration amounts presented in the Consolidated Statements of Operations less incurred expenses related to the development of new operations, or related to major projects at existing operations where these projects will materially benefit the operation in the future. The allocation of these costs to gold and other metals is determined using the same allocation used in the allocation of CAS between gold and other metals. We also allocate these costs incurred at Corporate and Other using the proportion of CAS between gold and other metals.
General and administrative. Includes costs related to administrative tasks not directly related to current production, but rather related to supporting our corporate structure and fulfilling our obligations to operate as a public company. Including these expenses in the AISC metric provides visibility of the impact that general and administrative activities have on current operations and profitability on a per ounce basis. We allocate these costs to gold and other metals at Corporate and Other using the proportion of CAS between gold and other metals.
Other expense, net. For Other expense, net we include care and maintenance costs relating to direct operating costs incurred at the mine sites during the period that these sites were temporarily placed into care and maintenance in response to pandemics such as COVID-19 or unexpected significant events and exclude certain exceptional or unusual expenses, such as restructuring, as these are not indicative to sustaining our current operations. Furthermore, this adjustment to Other expense, net is also consistent with the nature of the adjustments made to Net income (loss) attributable to
Treatment and refining costs. Includes costs paid to smelters for treatment and refining of our concentrates to produce the salable metal. These costs are presented net as a reduction of Sales on the Consolidated Statements of Operations. The allocation of these costs to gold and other metals is determined using the same allocation used in the allocation of CAS between gold and other metals.
Sustaining capital and finance lease payments. We determined sustaining capital and finance lease payments as those capital expenditures and finance lease payments that are necessary to maintain current production and execute the current mine plan. We determined development (i.e. non-sustaining) capital expenditures and finance lease payments to be those payments used to develop new operations or related to projects at existing operations where those projects will materially benefit the operation and are excluded from the calculation of AISC. The classification of sustaining and development capital projects and finance leases is based on a systematic review of our project portfolio in light of the nature of each project. Sustaining capital and finance lease payments are relevant to the AISC metric as these are needed to maintain the Company’s current operations and provide improved transparency related to our ability to finance these expenditures from current operations. The allocation of these costs to gold and other metals is determined using the same allocation used in the allocation of CAS between gold and other metals. We also allocate these costs incurred at Corporate and Other using the proportion of CAS between gold and other metals.
Three Months Ended D ecember 31, 2023 |
Costs Applicable to Sales(1)(2)(3) |
|
Reclamation Costs(4) |
|
Advanced Projects, Research and Development and Exploration(5) |
|
General and Administrative |
|
Other Expense, Net(6) |
|
Treatment and Refining Costs |
|
Sustaining Capital and Lease Related Costs(7)(8) |
|
All-In Sustaining Costs |
|
Ounces (000) Sold |
All-In Sustaining Costs Per oz.(9) |
||||||||||||||||||||
Gold |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
CC&V |
$ |
41 |
|
$ |
2 |
|
$ |
2 |
|
$ |
— |
|
$ |
1 |
|
$ |
— |
|
$ |
20 |
|
$ |
66 |
|
36 |
|
$ |
1,793 |
||||||||||
Musselwhite |
|
51 |
|
|
|
1 |
|
|
|
3 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
31 |
|
|
|
86 |
|
|
49 |
|
|
|
1,771 |
|
Porcupine |
|
81 |
|
|
|
6 |
|
|
|
2 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
26 |
|
|
|
115 |
|
|
69 |
|
|
|
1,665 |
|
Éléonore |
|
83 |
|
|
|
2 |
|
|
|
4 |
|
|
|
— |
|
|
|
(1 |
) |
|
|
— |
|
|
|
33 |
|
|
|
121 |
|
|
68 |
|
|
|
1,796 |
|
Red Chris (10) |
|
4 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2 |
|
|
|
6 |
|
|
4 |
|
|
|
1,439 |
|
Brucejack (10) |
|
69 |
|
|
|
— |
|
|
|
7 |
|
|
|
— |
|
|
|
1 |
|
|
|
3 |
|
|
|
16 |
|
|
|
96 |
|
|
36 |
|
|
|
2,646 |
|
Peñasquito |
|
35 |
|
|
|
1 |
|
|
|
— |
|
|
|
— |
|
|
|
2 |
|
|
|
2 |
|
|
|
5 |
|
|
|
45 |
|
|
27 |
|
|
|
1,659 |
|
Merian |
|
116 |
|
|
|
2 |
|
|
|
5 |
|
|
|
— |
|
|
|
— |
|
|
|
1 |
|
|
|
22 |
|
|
|
146 |
|
|
100 |
|
|
|
1,454 |
|
|
|
96 |
|
|
|
1 |
|
|
|
2 |
|
|
|
— |
|
|
|
3 |
|
|
|
— |
|
|
|
18 |
|
|
|
120 |
|
|
85 |
|
|
|
1,412 |
|
Yanacocha |
|
69 |
|
|
|
7 |
|
|
|
1 |
|
|
|
— |
|
|
|
(4 |
) |
|
|
— |
|
|
|
13 |
|
|
|
86 |
|
|
71 |
|
|
|
1,198 |
|
Boddington |
|
151 |
|
|
|
3 |
|
|
|
2 |
|
|
|
— |
|
|
|
— |
|
|
|
4 |
|
|
|
28 |
|
|
|
188 |
|
|
161 |
|
|
|
1,172 |
|
Tanami |
|
93 |
|
|
|
1 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
44 |
|
|
|
138 |
|
|
132 |
|
|
|
1,046 |
|
Cadia (10) |
|
129 |
|
|
|
— |
|
|
|
1 |
|
|
|
— |
|
|
|
— |
|
|
|
6 |
|
|
|
16 |
|
|
|
152 |
|
|
120 |
|
|
|
1,271 |
|
Telfer (10) |
|
126 |
|
|
|
— |
|
|
|
2 |
|
|
|
— |
|
|
|
— |
|
|
|
3 |
|
|
|
2 |
|
|
|
133 |
|
|
67 |
|
|
|
1,988 |
|
Lihir (10) |
|
146 |
|
|
|
— |
|
|
|
2 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
51 |
|
|
|
199 |
|
|
131 |
|
|
|
1,517 |
|
Ahafo |
|
163 |
|
|
|
6 |
|
|
|
1 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
27 |
|
|
|
197 |
|
|
177 |
|
|
|
1,114 |
|
Akyem |
|
86 |
|
|
|
15 |
|
|
|
— |
|
|
|
(1 |
) |
|
|
— |
|
|
|
— |
|
|
|
8 |
|
|
|
108 |
|
|
98 |
|
|
|
1,110 |
|
NGM |
|
361 |
|
|
|
6 |
|
|
|
1 |
|
|
|
4 |
|
|
|
— |
|
|
|
1 |
|
|
|
102 |
|
|
|
475 |
|
|
320 |
|
|
|
1,482 |
|
Corporate and Other (11) |
|
— |
|
|
|
— |
|
|
|
34 |
|
|
|
74 |
|
|
|
2 |
|
|
|
— |
|
|
|
13 |
|
|
|
123 |
|
|
— |
|
|
|
— |
|
Total Gold |
$ |
1,900 |
|
|
$ |
53 |
|
|
$ |
69 |
|
|
$ |
77 |
|
|
$ |
4 |
|
|
$ |
20 |
|
|
$ |
477 |
|
|
$ |
2,600 |
|
|
1,751 |
|
|
$ |
1,485 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Gold equivalent ounces - other metals (12) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Red Chris (10) |
$ |
17 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
3 |
|
|
$ |
7 |
|
|
$ |
27 |
|
|
16 |
|
|
$ |
1,660 |
|
Peñasquito |
|
195 |
|
|
|
7 |
|
|
|
2 |
|
|
|
— |
|
|
|
— |
|
|
|
16 |
|
|
|
33 |
|
|
|
253 |
|
|
122 |
|
|
|
2,084 |
|
Boddington |
|
53 |
|
|
|
1 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
4 |
|
|
|
8 |
|
|
|
66 |
|
|
56 |
|
|
|
1,181 |
|
Cadia (10) |
|
116 |
|
|
|
— |
|
|
|
1 |
|
|
|
— |
|
|
|
— |
|
|
|
19 |
|
|
|
17 |
|
|
|
153 |
|
|
114 |
|
|
|
1,342 |
|
Telfer (10) |
|
22 |
|
|
|
— |
|
|
|
2 |
|
|
|
— |
|
|
|
— |
|
|
|
4 |
|
|
|
5 |
|
|
|
33 |
|
|
13 |
|
|
|
2,580 |
|
Corporate and Other (11) |
|
— |
|
|
|
— |
|
|
|
4 |
|
|
|
7 |
|
|
|
(1 |
) |
|
|
— |
|
|
|
1 |
|
|
|
11 |
|
|
— |
|
|
|
— |
|
Total Gold Equivalent Ounces |
$ |
403 |
|
|
$ |
8 |
|
|
$ |
9 |
|
|
$ |
7 |
|
|
$ |
(1 |
) |
|
$ |
46 |
|
|
$ |
71 |
|
|
$ |
543 |
|
|
321 |
|
|
$ |
1,697 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Consolidated |
$ |
2,303 |
|
|
$ |
61 |
|
|
$ |
78 |
|
|
$ |
84 |
|
|
$ |
3 |
|
|
$ |
66 |
|
|
$ |
548 |
|
|
$ |
3,143 |
|
|
|
|
|
(1) |
|
Excludes Depreciation and amortization and Reclamation and remediation. |
(2) |
|
Includes by-product credits of |
(3) |
|
Includes stockpile and leach pad inventory adjustments of |
(4) |
|
Reclamation costs include operating accretion and amortization of asset retirement costs of |
(5) |
|
Advanced projects, research and development and Exploration excludes development expenditures of |
(6) |
|
Other expense, net is adjusted for settlement costs of |
(7) |
|
Excludes capitalized interest related to sustaining capital expenditures. |
(8) |
|
Includes finance lease payments for sustaining projects of $9 and excludes finance lease payments for development projects of $36. |
(9) |
|
Per ounce measures may not recalculate due to rounding. |
(10) |
|
Sites acquired through the |
(11) |
|
Corporate and Other includes the Company's business activities relating to its corporate and regional offices and all equity method investments. |
(12) |
|
Gold equivalent ounces is calculated as pounds or ounces produced multiplied by the ratio of the other metals price to the gold price, using Gold ($1,400/oz.), Copper ($3.50/lb.), Silver ($20.00/oz.), Lead ($1.00/lb.) and Zinc ($1.20/lb.) pricing for 2023. |
Three Months Ended December 31, 2022 |
Costs Applicable to Sales(1)(2)(3) |
|
Reclamation Costs(4) |
|
Advanced Projects, Research and Development and Exploration(5) |
|
General a nd A dministrative |
|
Other E xpense, N et (6)(7) |
|
Treatment a nd R efining C osts |
|
Sustaining Capital and Lease Related Costs(8)(9)(10) |
|
All-In Sustaining Costs |
|
Ounces (000) Sold |
|
All-In Sustaining Costs Per oz.(11) |
|||||||||||||||||||
Gold |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
CC&V |
$ |
76 |
|
$ |
5 |
|
$ |
4 |
|
$ |
— |
|
$ |
(1 |
) |
|
$ |
— |
|
$ |
15 |
|
$ |
99 |
|
55 |
|
$ |
1,783 |
|||||||||
Musselwhite |
|
52 |
|
|
|
1 |
|
|
|
3 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
21 |
|
|
|
77 |
|
|
57 |
|
|
|
1,355 |
|
Porcupine |
|
72 |
|
|
|
3 |
|
|
|
2 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
17 |
|
|
|
94 |
|
|
79 |
|
|
|
1,188 |
|
Éléonore |
|
69 |
|
|
|
2 |
|
|
|
4 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
18 |
|
|
|
93 |
|
|
66 |
|
|
|
1,426 |
|
Peñasquito |
|
119 |
|
|
|
2 |
|
|
|
1 |
|
|
|
— |
|
|
|
2 |
|
|
|
2 |
|
|
|
20 |
|
|
|
146 |
|
|
165 |
|
|
|
884 |
|
Merian |
|
99 |
|
|
|
2 |
|
|
|
2 |
|
|
|
— |
|
|
|
(1 |
) |
|
|
— |
|
|
|
20 |
|
|
|
122 |
|
|
118 |
|
|
|
1,043 |
|
|
|
78 |
|
|
|
— |
|
|
|
— |
|
|
|
2 |
|
|
|
1 |
|
|
|
— |
|
|
|
14 |
|
|
|
95 |
|
|
73 |
|
|
|
1,300 |
|
Yanacocha |
|
99 |
|
|
|
5 |
|
|
|
(1 |
) |
|
|
1 |
|
|
|
2 |
|
|
|
— |
|
|
|
6 |
|
|
|
112 |
|
|
60 |
|
|
|
1,833 |
|
Boddington |
|
161 |
|
|
|
5 |
|
|
|
2 |
|
|
|
— |
|
|
|
— |
|
|
|
4 |
|
|
|
10 |
|
|
|
182 |
|
|
197 |
|
|
|
922 |
|
Tanami |
|
98 |
|
|
|
— |
|
|
|
1 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
35 |
|
|
|
134 |
|
|
128 |
|
|
|
1,044 |
|
Ahafo |
|
176 |
|
|
|
4 |
|
|
|
2 |
|
|
|
— |
|
|
|
2 |
|
|
|
— |
|
|
|
27 |
|
|
|
211 |
|
|
176 |
|
|
|
1,202 |
|
Akyem |
|
114 |
|
|
|
12 |
|
|
|
— |
|
|
|
— |
|
|
|
1 |
|
|
|
— |
|
|
|
8 |
|
|
|
135 |
|
|
116 |
|
|
|
1,157 |
|
NGM |
|
300 |
|
|
|
2 |
|
|
|
4 |
|
|
|
3 |
|
|
|
— |
|
|
|
3 |
|
|
|
68 |
|
|
|
380 |
|
|
320 |
|
|
|
1,186 |
|
Corporate and Other (12) |
|
— |
|
|
|
— |
|
|
|
16 |
|
|
|
52 |
|
|
|
3 |
|
|
|
— |
|
|
|
6 |
|
|
|
77 |
|
|
— |
|
|
|
— |
|
Total Gold |
$ |
1,513 |
|
|
$ |
43 |
|
|
$ |
40 |
|
|
$ |
58 |
|
|
$ |
9 |
|
|
$ |
9 |
|
|
$ |
285 |
|
|
$ |
1,957 |
|
|
1,610 |
|
|
$ |
1,215 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Gold equivalent ounces - other metals (13) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Peñasquito |
$ |
217 |
|
|
$ |
5 |
|
|
$ |
2 |
|
|
$ |
— |
|
|
$ |
2 |
|
|
$ |
35 |
|
|
$ |
34 |
|
|
$ |
295 |
|
|
251 |
|
|
$ |
1,178 |
|
Boddington |
|
50 |
|
|
|
— |
|
|
|
1 |
|
|
|
1 |
|
|
|
— |
|
|
|
2 |
|
|
|
3 |
|
|
|
57 |
|
|
60 |
|
|
|
939 |
|
Corporate and Other (12) |
|
— |
|
|
|
— |
|
|
|
2 |
|
|
|
7 |
|
|
|
1 |
|
|
|
— |
|
|
|
1 |
|
|
|
11 |
|
|
— |
|
|
|
— |
|
Total Gold Equivalent Ounces |
$ |
267 |
|
|
$ |
5 |
|
|
$ |
5 |
|
|
$ |
8 |
|
|
$ |
3 |
|
|
$ |
37 |
|
|
$ |
38 |
|
|
$ |
363 |
|
|
311 |
|
|
$ |
1,166 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Consolidated |
$ |
1,780 |
|
|
$ |
48 |
|
|
$ |
45 |
|
|
$ |
66 |
|
|
$ |
12 |
|
|
$ |
46 |
|
|
$ |
323 |
|
|
$ |
2,320 |
|
|
|
|
|
(1) |
|
Excludes Depreciation and amortization and Reclamation and remediation. |
(2) |
|
Includes by-product credits of $36 and excludes co-product revenues of $370. |
(3) |
|
Includes stockpile and leach pad inventory adjustments of $19 at CC&V, $24 at Yanacocha, $9 at Ahafo, $17 at Akyem, and $2 at NGM. |
(4) |
|
Reclamation costs include operating accretion and amortization of asset retirement costs of $16 and 32, respectively, and exclude accretion and reclamation and remediation adjustments at former operating properties and historic mining operations that have entered the closure phase and have no substantive future economic value of $29 and $713, respectively. |
(5) |
|
Advanced projects, research and development and Exploration excludes development expenditures of $1 at Porcupine, $12 at Yanacocha, $2 at Merian, $10 at Cerro Negro, $6 at Tanami, $6 at Ahafo, $2 at Akyem, $4 at NGM and $34 at Corporate and Other, totaling $77 related to developing new operations or major projects at existing operations where these projects will materially benefit the operation. |
(6) |
|
Other expense, net includes incremental COVID-19 costs incurred as a result of actions taken to protect against the impacts of the COVID-19 pandemic at our operational segments of $1 at Cerro Negro and $1 at Yanacocha. |
(7) |
|
Other expense, net is adjusted for impairment of long-lived and other assets of $1,317, distributions from the |
(8) |
|
Includes sustaining capital expenditures of $307. |
(9) |
|
Excludes development capital expenditures, capitalized interest and the change in accrued capital totaling $339. |
(10) |
|
Includes finance lease payments for sustaining projects of $16. |
(11) |
|
Per ounce measures may not recalculate due to rounding. |
(12) |
|
Corporate and Other includes the Company's business activities relating to its corporate and regional offices and all equity method investments. |
(13) |
|
Gold equivalent ounces is calculated as pounds or ounces produced multiplied by the ratio of the other metals price to the gold price, using Gold ($1,200/oz.), Copper ($3.25/lb.), Silver ($23.00/oz.), Lead ($0.95/lb.) and Zinc ($1.15/lb.) pricing for 2022. |
Year Ended December 31, 2023 |
Costs Applicable to Sales(1)(2)(3) |
|
Reclamation Costs(4) |
|
Advanced Projects, Research and Development and Exploration(5) |
|
General and Administrative |
|
Other Expense, Net(6) |
|
Treatment and Refining Costs |
|
Sustaining Capital and Lease Related Costs(7)(8) |
|
All-In Sustaining Costs |
|
Ounces (000) Sold |
|
All-In Sustaining Costs Per oz.(9) |
|||||||||||||||||||
Gold |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
CC&V |
$ |
198 |
|
$ |
10 |
|
$ |
10 |
|
$ |
— |
|
$ |
2 |
|
$ |
— |
|
$ |
62 |
|
$ |
282 |
|
171 |
|
$ |
1,644 |
||||||||||
Musselwhite |
|
214 |
|
|
|
5 |
|
|
|
10 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
104 |
|
|
|
333 |
|
|
181 |
|
|
|
1,843 |
|
Porcupine |
|
301 |
|
|
|
23 |
|
|
|
12 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
71 |
|
|
|
407 |
|
|
258 |
|
|
|
1,577 |
|
Éléonore |
|
295 |
|
|
|
9 |
|
|
|
10 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
114 |
|
|
|
428 |
|
|
233 |
|
|
|
1,838 |
|
Red Chris (10) |
|
4 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2 |
|
|
|
6 |
|
|
4 |
|
|
|
1,439 |
|
Brucejack (10) |
|
69 |
|
|
|
— |
|
|
|
7 |
|
|
|
— |
|
|
|
1 |
|
|
|
3 |
|
|
|
16 |
|
|
|
96 |
|
|
36 |
|
|
|
2,646 |
|
Peñasquito |
|
158 |
|
|
|
7 |
|
|
|
1 |
|
|
|
— |
|
|
|
2 |
|
|
|
9 |
|
|
|
29 |
|
|
|
206 |
|
|
130 |
|
|
|
1,587 |
|
Merian |
|
385 |
|
|
|
7 |
|
|
|
14 |
|
|
|
— |
|
|
|
— |
|
|
|
1 |
|
|
|
85 |
|
|
|
492 |
|
|
319 |
|
|
|
1,541 |
|
|
|
328 |
|
|
|
5 |
|
|
|
5 |
|
|
|
— |
|
|
|
5 |
|
|
|
— |
|
|
|
51 |
|
|
|
394 |
|
|
261 |
|
|
|
1,509 |
|
Yanacocha |
|
294 |
|
|
|
24 |
|
|
|
7 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
24 |
|
|
|
349 |
|
|
275 |
|
|
|
1,266 |
|
Boddington |
|
634 |
|
|
|
17 |
|
|
|
5 |
|
|
|
— |
|
|
|
— |
|
|
|
18 |
|
|
|
125 |
|
|
|
799 |
|
|
749 |
|
|
|
1,067 |
|
Tanami |
|
337 |
|
|
|
3 |
|
|
|
1 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
130 |
|
|
|
471 |
|
|
444 |
|
|
|
1,060 |
|
Cadia (10) |
|
129 |
|
|
|
— |
|
|
|
1 |
|
|
|
— |
|
|
|
— |
|
|
|
6 |
|
|
|
16 |
|
|
|
152 |
|
|
120 |
|
|
|
1,271 |
|
Telfer (10) |
|
126 |
|
|
|
— |
|
|
|
2 |
|
|
|
— |
|
|
|
— |
|
|
|
3 |
|
|
|
2 |
|
|
|
133 |
|
|
67 |
|
|
|
1,988 |
|
Lihir (10) |
|
146 |
|
|
|
— |
|
|
|
2 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
51 |
|
|
|
199 |
|
|
131 |
|
|
|
1,517 |
|
Ahafo |
|
547 |
|
|
|
20 |
|
|
|
2 |
|
|
|
— |
|
|
|
2 |
|
|
|
— |
|
|
|
135 |
|
|
|
706 |
|
|
578 |
|
|
|
1,222 |
|
Akyem |
|
275 |
|
|
|
44 |
|
|
|
1 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
37 |
|
|
|
357 |
|
|
296 |
|
|
|
1,210 |
|
NGM |
|
1,249 |
|
|
|
17 |
|
|
|
13 |
|
|
|
11 |
|
|
|
2 |
|
|
|
6 |
|
|
|
332 |
|
|
|
1,630 |
|
|
1,167 |
|
|
|
1,397 |
|
Corporate and Other (11) |
|
— |
|
|
|
— |
|
|
|
89 |
|
|
|
255 |
|
|
|
6 |
|
|
|
— |
|
|
|
37 |
|
|
|
387 |
|
|
— |
|
|
|
— |
|
Total Gold |
$ |
5,689 |
|
|
$ |
191 |
|
|
$ |
192 |
|
|
$ |
266 |
|
|
$ |
20 |
|
|
$ |
46 |
|
|
$ |
1,423 |
|
|
$ |
7,827 |
|
|
5,420 |
|
|
$ |
1,444 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Gold equivalent ounces - other metals (12) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Red Chris (10) |
$ |
17 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
3 |
|
|
$ |
7 |
|
|
$ |
27 |
|
|
16 |
|
|
$ |
1,660 |
|
Peñasquito |
|
651 |
|
|
|
28 |
|
|
|
5 |
|
|
|
1 |
|
|
|
1 |
|
|
|
82 |
|
|
|
120 |
|
|
|
888 |
|
|
507 |
|
|
|
1,752 |
|
Boddington |
|
204 |
|
|
|
3 |
|
|
|
1 |
|
|
|
— |
|
|
|
— |
|
|
|
15 |
|
|
|
39 |
|
|
|
262 |
|
|
246 |
|
|
|
1,067 |
|
Cadia (10) |
|
116 |
|
|
|
— |
|
|
|
1 |
|
|
|
— |
|
|
|
— |
|
|
|
19 |
|
|
|
17 |
|
|
|
153 |
|
|
114 |
|
|
|
1,342 |
|
Telfer (10) |
|
22 |
|
|
|
— |
|
|
|
2 |
|
|
|
— |
|
|
|
— |
|
|
|
4 |
|
|
|
5 |
|
|
|
33 |
|
|
13 |
|
|
|
2,580 |
|
Corporate and Other (11) |
|
— |
|
|
|
— |
|
|
|
11 |
|
|
|
32 |
|
|
|
— |
|
|
|
— |
|
|
|
6 |
|
|
|
49 |
|
|
— |
|
|
|
— |
|
Total Gold Equivalent Ounces |
$ |
1,010 |
|
|
$ |
31 |
|
|
$ |
20 |
|
|
$ |
33 |
|
|
$ |
1 |
|
|
$ |
123 |
|
|
$ |
194 |
|
|
$ |
1,412 |
|
|
896 |
|
|
$ |
1,577 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Consolidated |
$ |
6,699 |
|
|
$ |
222 |
|
|
$ |
212 |
|
|
$ |
299 |
|
|
$ |
21 |
|
|
$ |
169 |
|
|
$ |
1,617 |
|
|
$ |
9,239 |
|
|
|
|
|
(1) |
|
Excludes Depreciation and amortization and Reclamation and remediation. |
(2) |
|
Includes by-product credits of $137 and excludes co-product revenues of $1,219. |
(3) |
|
Includes stockpile and leach pad inventory adjustments of $3 at Porcupine, $5 at Éléonore, $2 at Brucejack, $32 at Peñasquito, $2 at Cerro Negro, $5 at Yanacocha, $4 at Telfer, $1 at Akyem, and $43 at NGM. |
(4) |
|
Reclamation costs include operating accretion and amortization of asset retirement costs of $97 and $125, respectively, and exclude accretion and reclamation and remediation adjustments at former operating properties and historic mining operations that have entered the closure phase and have no substantive future economic value of $148 and $1,288, respectively. |
(5) |
|
Advanced projects, research and development and Exploration excludes development expenditures of $3 at CC&V, $5 at Porcupine, $5 at Peñasquito, $9 at Merian, $5 at Cerro Negro, $4 at Yanacocha, $29 at Tanami, $38 at Ahafo, $18 at Akyem, $16 at NGM and $121 at Corporate and Other, totaling $253 related to developing new operations or major projects at existing operations where these projects will materially benefit the operation. |
(6) |
|
Other expense, net is adjusted for settlement costs of |
(7) |
|
Excludes capitalized interest related to sustaining capital expenditures. |
(8) |
|
Includes finance lease payments for sustaining projects of $64 and excludes finance lease payments for development projects of $36. |
(9) |
|
Per ounce measures may not recalculate due to rounding. |
(10) |
|
Sites acquired through the |
(11) |
|
Corporate and Other includes the Company's business activities relating to its corporate and regional offices and all equity method investments. |
(12) |
|
Gold equivalent ounces is calculated as pounds or ounces produced multiplied by the ratio of the other metals price to the gold price, using Gold ($1,400/oz.), Copper ($3.50/lb.), Silver ($20.00/oz.), Lead ($1.00/lb.) and Zinc ($1.20/lb.) pricing for 2023. |
Year Ended December 31, 2022 |
Costs Applicable to Sales(1)(2)(3) |
|
Reclamation Costs(4) |
|
Advanced Projects, Research and Development and Exploration(5) |
|
General and Administrative |
|
Other Expense, Net(6)(7) |
|
Treatment and Refining Costs |
|
Sustaining Capital and Lease Related Costs(8)(9)(10) |
|
All-In Sustaining Costs |
|
Ounces (000) Sold |
|
All-In Sustaining Costs P er oz.(11) |
|||||||||||||||||||
Gold |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
CC&V |
$ |
241 |
|
$ |
16 |
|
$ |
10 |
|
$ |
— |
|
$ |
3 |
|
$ |
— |
|
$ |
45 |
|
$ |
315 |
|
185 |
|
$ |
1,697 |
||||||||||
Musselwhite |
|
195 |
|
|
|
5 |
|
|
|
8 |
|
|
|
— |
|
|
|
1 |
|
|
|
— |
|
|
|
53 |
|
|
|
262 |
|
|
172 |
|
|
|
1,531 |
|
Porcupine |
|
281 |
|
|
|
6 |
|
|
|
11 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
52 |
|
|
|
350 |
|
|
280 |
|
|
|
1,248 |
|
Éléonore |
|
266 |
|
|
|
9 |
|
|
|
5 |
|
|
|
— |
|
|
|
3 |
|
|
|
— |
|
|
|
63 |
|
|
|
346 |
|
|
217 |
|
|
|
1,599 |
|
Peñasquito (12) |
|
442 |
|
|
|
10 |
|
|
|
4 |
|
|
|
1 |
|
|
|
3 |
|
|
|
23 |
|
|
|
72 |
|
|
|
555 |
|
|
573 |
|
|
|
968 |
|
Merian |
|
369 |
|
|
|
6 |
|
|
|
11 |
|
|
|
— |
|
|
|
2 |
|
|
|
— |
|
|
|
57 |
|
|
|
445 |
|
|
403 |
|
|
|
1,105 |
|
|
|
283 |
|
|
|
5 |
|
|
|
1 |
|
|
|
2 |
|
|
|
10 |
|
|
|
— |
|
|
|
54 |
|
|
|
355 |
|
|
281 |
|
|
|
1,262 |
|
Yanacocha |
|
313 |
|
|
|
19 |
|
|
|
2 |
|
|
|
1 |
|
|
|
11 |
|
|
|
— |
|
|
|
23 |
|
|
|
369 |
|
|
250 |
|
|
|
1,477 |
|
Boddington |
|
652 |
|
|
|
17 |
|
|
|
5 |
|
|
|
— |
|
|
|
2 |
|
|
|
16 |
|
|
|
56 |
|
|
|
748 |
|
|
813 |
|
|
|
921 |
|
Tanami |
|
328 |
|
|
|
2 |
|
|
|
7 |
|
|
|
— |
|
|
|
6 |
|
|
|
— |
|
|
|
124 |
|
|
|
467 |
|
|
486 |
|
|
|
960 |
|
Ahafo |
|
566 |
|
|
|
11 |
|
|
|
5 |
|
|
|
— |
|
|
|
2 |
|
|
|
— |
|
|
|
90 |
|
|
|
674 |
|
|
572 |
|
|
|
1,178 |
|
Akyem |
|
334 |
|
|
|
35 |
|
|
|
2 |
|
|
|
— |
|
|
|
1 |
|
|
|
— |
|
|
|
32 |
|
|
|
404 |
|
|
415 |
|
|
|
972 |
|
|
|
1,153 |
|
|
|
9 |
|
|
|
15 |
|
|
|
10 |
|
|
|
— |
|
|
|
4 |
|
|
|
230 |
|
|
|
1,421 |
|
|
1,165 |
|
|
|
1,220 |
|
Corporate and Other (13) |
|
— |
|
|
|
— |
|
|
|
76 |
|
|
|
224 |
|
|
|
3 |
|
|
|
— |
|
|
|
24 |
|
|
|
327 |
|
|
— |
|
|
|
— |
|
Total Gold |
$ |
5,423 |
|
|
$ |
150 |
|
|
$ |
162 |
|
|
$ |
238 |
|
|
$ |
47 |
|
|
$ |
43 |
|
|
$ |
975 |
|
|
$ |
7,038 |
|
|
5,812 |
|
|
$ |
1,211 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Gold equivalent ounces - other metals (14) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Peñasquito (12) |
$ |
864 |
|
|
$ |
19 |
|
|
$ |
10 |
|
|
$ |
1 |
|
|
$ |
5 |
|
|
$ |
130 |
|
|
$ |
132 |
|
|
$ |
1,161 |
|
|
1,044 |
|
|
$ |
1,112 |
|
Boddington |
|
181 |
|
|
|
2 |
|
|
|
2 |
|
|
|
— |
|
|
|
— |
|
|
|
10 |
|
|
|
12 |
|
|
|
207 |
|
|
231 |
|
|
|
894 |
|
Corporate and Other (13) |
|
— |
|
|
|
— |
|
|
|
11 |
|
|
|
37 |
|
|
|
1 |
|
|
|
— |
|
|
|
4 |
|
|
|
53 |
|
|
— |
|
|
|
— |
|
Total Gold Equivalent Ounces |
$ |
1,045 |
|
|
$ |
21 |
|
|
$ |
23 |
|
|
$ |
38 |
|
|
$ |
6 |
|
|
$ |
140 |
|
|
$ |
148 |
|
|
$ |
1,421 |
|
|
1,275 |
|
|
$ |
1,114 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Consolidated |
$ |
6,468 |
|
|
$ |
171 |
|
|
$ |
185 |
|
|
$ |
276 |
|
|
$ |
53 |
|
|
$ |
183 |
|
|
$ |
1,123 |
|
|
$ |
8,459 |
|
|
|
|
|
(1) |
|
Excludes Depreciation and amortization and Reclamation and remediation. |
(2) |
|
Includes by-product credits of $117 and excludes co-product revenues of $1,499. |
(3) |
|
Includes stockpile and leach pad inventory adjustments of $37 at CC&V, $37 at Yanacocha, $3 at Merian, $9 at Ahafo, $19 at Akyem, and $51 at NGM. |
(4) |
|
Reclamation costs include operating accretion and amortization of asset retirement costs of $65 and $106, respectively, and exclude accretion and reclamation and remediation adjustments at former operating properties and historic mining operations that have entered the closure phase and have no substantive future economic value of $114 and $742, respectively. |
(5) |
|
Advanced projects, research and development and Exploration excludes development expenditures of $1 at CC&V, $3 at Porcupine, $5 at Peñasquito, $10 at Merian, $24 at Cerro Negro, $20 at Yanacocha, $21 at Tanami, $21 at Ahafo, $12 at Akyem, $17 at NGM and $141 at Corporate and Other, totaling $275 related to developing new operations or major projects at existing operations where these projects will materially benefit the operation. |
(6) |
|
Other expense, net includes incremental COVID-19 costs incurred as a result of actions taken to protect against the impacts of the COVID-19 pandemic at our operational segments of $1 at Musselwhite, $3 at Éléonore, $7 at Peñasquito, $3 at Merian, $7 at Cerro Negro, $6 at Yanacocha, $2 at Boddington, $6 at Tanami, totaling $35. |
(7) |
|
Other expense, net is adjusted for settlement costs of $22, restructuring and severance costs of $4 and distributions from the |
(8) |
|
Includes sustaining capital expenditures of $1,059. |
(9) |
|
Excludes development capital expenditures, capitalized interest and the change in accrued capital totaling $1,072. |
(10) |
|
Includes finance lease payments for sustaining projects of $64 and excludes finance lease payments for development projects of $36. |
(11) |
|
Per ounce measures may not recalculate due to rounding. |
(12) |
|
Costs applicable to sales includes $70 related to the Peñasquito Profit-Sharing Agreement associated with 2021 site performance. |
(13) |
|
Corporate and Other includes the Company's business activities relating to its corporate and regional offices and all equity method investments. |
(14) |
|
Gold equivalent ounces is calculated as pounds or ounces produced multiplied by the ratio of the other metals price to the gold price, using Gold ($1,200/oz.), Copper ($3.25/lb.), Silver ($23.00/oz.), Lead ($0.95/lb.) and Zinc ($1.15/lb.) pricing for 2022. |
A reconciliation of the 2024 Gold AISC outlook to the 2024 Gold CAS outlook is provided below. The estimates in the table below are considered “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are intended to be covered by the safe harbor created by such sections and other applicable laws.
2024 Outlook - Gold (1)(2) |
|
|
(in millions, except ounces and per ounce) |
Outlook Estimate |
|
Cost Applicable to Sales (3)(4) |
$ |
6,900 |
Reclamation Costs (5) |
|
190 |
Advanced Projects and Exploration (6) |
|
160 |
General and Administrative (7) |
|
235 |
Other Expense |
|
10 |
Treatment and Refining Costs |
|
135 |
Sustaining Capital (8) |
|
1,495 |
Sustaining Finance Lease Payments |
|
25 |
All-in Sustaining Costs |
$ |
9,150 |
Ounces (000) Sold (9) |
|
6,555 |
All-in Sustaining Costs per Ounce |
$ |
1,400 |
(1) |
|
The reconciliation is provided for illustrative purposes in order to better describe management’s estimates of the components of the calculation. Estimates for each component of the forward-looking All-in sustaining costs per ounce are independently calculated and, as a result, the total All-in sustaining costs and the All-in sustaining costs per ounce may not sum to the component ranges. While a reconciliation to the most directly comparable GAAP measure has been provided for the 2024 AISC Gold Outlook on a consolidated basis, a reconciliation has not been provided on an individual site or project basis in reliance on Item 10(e)(1)(i)(B) of Regulation S-K because such reconciliation is not available without unreasonable efforts. |
(2) |
|
All values are presented on a consolidated basis for |
(3) |
|
Excludes Depreciation and amortization and Reclamation and remediation. |
(4) |
|
Includes stockpile and leach pad inventory adjustments. |
(5) |
|
Reclamation costs include operating accretion and amortization of asset retirement costs. |
(6) |
|
Advanced Project and Exploration excludes non-sustaining advanced projects and exploration. |
(7) |
|
Includes stock-based compensation. |
(8) |
|
Excludes development capital expenditures, capitalized interest and change in accrued capital. |
(9) |
|
Consolidated production for Merian is presented on a total production basis for the mine site and excludes production from |
Net debt to Adjusted EBITDA ratio
Management uses net debt to Adjusted EBITDA as non-GAAP measures to evaluate the Company’s operating performance, including our ability to generate earnings sufficient to service our debt. Net debt to Adjusted EBITDA represents the ratio of the Company’s debt, net of cash and cash equivalents, to Adjusted EBITDA. Net debt to Adjusted EBITDA does not represent, and should not be considered an alternative to, net income (loss), operating income (loss), or cash flow from operations as those terms are defined by GAAP, and does not necessarily indicate whether cash flows will be sufficient to fund cash needs. Although Net Debt to Adjusted EBITDA and similar measures are frequently used as measures of operations and the ability to meet debt service requirements by other companies, our calculation of net debt to Adjusted EBITDA measure is not necessarily comparable to such other similarly titled captions of other companies. The Company believes that net debt to Adjusted EBITDA provides useful information to investors and others in understanding and evaluating our operating results in the same manner as our management and Board of Directors. Management’s determination of the components of net debt to Adjusted EBITDA is evaluated periodically and based, in part, on a review of non-GAAP financial measures used by mining industry analysts. Net income (loss) attributable to
|
Three Months Ended |
||||||||||||||
|
December 31, 2023 |
|
September 30, 2023 |
|
June 30, 2023 |
|
March 31, 2023 |
||||||||
|
|
|
|
|
|
|
|
||||||||
Net income (loss) attributable to |
$ |
(3,139 |
) |
|
$ |
158 |
|
|
$ |
155 |
|
|
$ |
351 |
|
Net income (loss) attributable to noncontrolling interests |
|
10 |
|
|
|
5 |
|
|
|
— |
|
|
|
12 |
|
Net loss (income) from discontinued operations |
|
(11 |
) |
|
|
(1 |
) |
|
|
(2 |
) |
|
|
(12 |
) |
Equity loss (income) of affiliates |
|
(19 |
) |
|
|
(3 |
) |
|
|
(16 |
) |
|
|
(25 |
) |
Income and mining tax expense (benefit) |
|
117 |
|
|
|
73 |
|
|
|
163 |
|
|
|
213 |
|
Depreciation and amortization |
|
624 |
|
|
|
480 |
|
|
|
486 |
|
|
|
461 |
|
Interest expense, net |
|
80 |
|
|
|
48 |
|
|
|
49 |
|
|
|
65 |
|
EBITDA |
|
(2,338 |
) |
|
|
760 |
|
|
|
835 |
|
|
|
1,065 |
|
Adjustments: |
|
|
|
|
|
|
|
||||||||
Impairment charges |
|
1,881 |
|
|
|
2 |
|
|
|
4 |
|
|
|
4 |
|
Reclamation and remediation charges |
|
1,158 |
|
|
|
104 |
|
|
|
(2 |
) |
|
|
— |
|
|
|
427 |
|
|
|
16 |
|
|
|
21 |
|
|
|
— |
|
(Gain) loss on asset and investment sales |
|
231 |
|
|
|
2 |
|
|
|
— |
|
|
|
(36 |
) |
Change in fair value of investments |
|
5 |
|
|
|
41 |
|
|
|
42 |
|
|
|
(41 |
) |
Restructuring and severance |
|
5 |
|
|
|
7 |
|
|
|
10 |
|
|
|
2 |
|
Pension settlements |
|
9 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Settlement costs |
|
5 |
|
|
|
2 |
|
|
|
— |
|
|
|
— |
|
COVID-19 specific costs |
|
1 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Other |
|
— |
|
|
|
(1 |
) |
|
|
— |
|
|
|
(4 |
) |
Adjusted EBITDA |
|
1,384 |
|
|
|
933 |
|
|
|
910 |
|
|
|
990 |
|
12 month trailing Adjusted EBITDA |
$ |
4,217 |
|
|
|
|
|
|
|
||||||
|
$ |
1,558 |
|
|
|
|
|
|
|
||||||
12 month trailing pro forma Adjusted EBITDA |
$ |
5,775 |
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
||||||||
Total Debt |
$ |
8,874 |
|
|
|
|
|
|
|
||||||
Lease and other financing obligations |
|
562 |
|
|
|
|
|
|
|
||||||
Less: Cash and cash equivalents |
|
(3,002 |
) |
|
|
|
|
|
|
||||||
Total net debt |
$ |
6,434 |
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
||||||||
Net debt to pro forma adjusted EBITDA |
|
1.1 |
|
|
|
|
|
|
|
(1) |
|
Represents Newcrest’s pre-acquisition Adjusted EBITDA on a US GAAP basis from January 1, 2023 through to the acquisition date, November 6, 2023. This amount is added to our adjusted EBITDA to include a full twelve months of |
Net average realized price per ounce/ pound
Average realized price per ounce/ pound are non-GAAP financial measures. The measures are calculated by dividing the net consolidated gold, copper, silver, lead and zinc sales by the consolidated gold ounces, copper pounds, silver ounces, lead pounds and zinc pounds sold, respectively. These measures are calculated on a consistent basis for the periods presented on a consolidated basis. Average realized price per ounce/ pound statistics are intended to provide additional information only, do not have any standardized meaning prescribed by GAAP and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP. The measures are not necessarily indicative of operating profit or cash flow from operations as determined under GAAP. Other companies may calculate these measures differently.
The following tables reconcile these non-GAAP measures to the most directly comparable GAAP measure:
|
Three Months Ended D ecember 31, |
|
Year Ended D ecember 31, |
||||||||||||
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Consolidated gold sales, net |
$ |
3,510 |
|
$ |
2,830 |
|
$ |
10,593 |
|
$ |
10,416 |
||||
Consolidated copper sales, net |
|
293 |
|
|
|
93 |
|
|
|
575 |
|
|
|
316 |
|
Consolidated silver sales, net |
|
89 |
|
|
|
148 |
|
|
|
335 |
|
|
|
549 |
|
Consolidated lead sales, net |
|
32 |
|
|
|
35 |
|
|
|
96 |
|
|
|
133 |
|
Consolidated zinc sales, net |
|
33 |
|
|
|
94 |
|
|
|
213 |
|
|
|
501 |
|
Total sales |
$ |
3,957 |
|
|
$ |
3,200 |
|
|
$ |
11,812 |
|
|
$ |
11,915 |
|
|
Three Months Ended December 31, 2023 |
||||||||||||||||||
|
Gold |
|
Copper |
|
Silver |
|
Lead |
|
Zinc |
||||||||||
|
(ounces) |
|
(pounds) |
|
(ounces) |
|
(pounds) |
|
(pounds) |
||||||||||
Consolidated sales: |
|
|
|
|
|
|
|
|
|
||||||||||
Gross before provisional pricing and streaming impact |
$ |
3,507 |
|
|
$ |
308 |
|
|
$ |
85 |
|
|
$ |
34 |
|
|
$ |
41 |
|
Provisional pricing mark-to-market |
|
23 |
|
|
|
15 |
|
|
|
— |
|
|
|
(2 |
) |
|
|
1 |
|
Silver streaming amortization |
|
— |
|
|
|
— |
|
|
|
11 |
|
|
|
— |
|
|
|
— |
|
Gross after provisional pricing and streaming impact |
|
3,530 |
|
|
|
323 |
|
|
|
96 |
|
|
|
32 |
|
|
|
42 |
|
Treatment and refining charges |
|
(20 |
) |
|
|
(30 |
) |
|
|
(7 |
) |
|
|
— |
|
|
|
(9 |
) |
Net |
$ |
3,510 |
|
|
$ |
293 |
|
|
$ |
89 |
|
|
$ |
32 |
|
|
$ |
33 |
|
Consolidated ounces / pounds sold (millions) |
|
1,751 |
|
|
|
79 |
|
|
|
5 |
|
|
|
35 |
|
|
|
35 |
|
Average realized price (per ounce/pound): (1) |
|
|
|
|
|
|
|
|
|
||||||||||
Gross before provisional pricing and streaming impact |
$ |
2,003 |
|
|
$ |
3.88 |
|
|
$ |
18.22 |
|
|
$ |
0.97 |
|
|
$ |
3.87 |
|
Provisional pricing mark-to-market |
|
13 |
|
|
|
0.19 |
|
|
|
0.18 |
|
|
|
(0.04 |
) |
|
|
0.10 |
|
Silver streaming amortization |
|
— |
|
|
|
— |
|
|
|
2.55 |
|
|
|
— |
|
|
|
— |
|
Gross after provisional pricing and streaming impact |
|
2,016 |
|
|
|
4.07 |
|
|
|
20.95 |
|
|
|
0.93 |
|
|
|
3.97 |
|
Treatment and refining charges |
|
(12 |
) |
|
|
(0.38 |
) |
|
|
(1.50 |
) |
|
|
(0.03 |
) |
|
|
(0.26 |
) |
Net |
$ |
2,004 |
|
|
$ |
3.69 |
|
|
$ |
19.45 |
|
|
$ |
0.90 |
|
|
$ |
3.71 |
|
|
Year Ended December 31, 2023 |
||||||||||||||||||
|
Gold |
|
Copper |
|
Silver |
|
Lead |
|
Zinc |
||||||||||
|
(ounces) |
|
(pounds) |
|
(ounces) |
|
(pounds) |
|
(pounds) |
||||||||||
Consolidated sales: |
|
|
|
|
|
|
|
|
|
||||||||||
Gross before provisional pricing and streaming impact |
$ |
10,605 |
|
|
$ |
601 |
|
|
$ |
312 |
|
|
$ |
103 |
|
|
$ |
281 |
|
Provisional pricing mark-to-market |
|
34 |
|
|
|
15 |
|
|
|
7 |
|
|
|
(4 |
) |
|
|
(15 |
) |
Silver streaming amortization |
|
— |
|
|
|
— |
|
|
|
42 |
|
|
|
— |
|
|
|
— |
|
Gross after provisional pricing and streaming impact |
|
10,639 |
|
|
|
616 |
|
|
|
361 |
|
|
|
99 |
|
|
|
266 |
|
Treatment and refining charges |
|
(46 |
) |
|
|
(41 |
) |
|
|
(26 |
) |
|
|
(3 |
) |
|
|
(53 |
) |
Net |
$ |
10,593 |
|
|
$ |
575 |
|
|
$ |
335 |
|
|
$ |
96 |
|
|
$ |
213 |
|
Consolidated ounces / pounds sold (millions) |
|
5,420 |
|
|
|
155 |
|
|
|
17 |
|
|
|
107 |
|
|
|
222 |
|
Average realized price (per ounce/pound): (1) |
|
|
|
|
|
|
|
|
|
||||||||||
Gross before provisional pricing and streaming impact |
$ |
1,957 |
|
|
$ |
3.87 |
|
|
$ |
18.53 |
|
|
$ |
0.96 |
|
|
$ |
1.27 |
|
Provisional pricing mark-to-market |
|
6 |
|
|
|
0.10 |
|
|
|
0.44 |
|
|
|
(0.03 |
) |
|
|
(0.07 |
) |
Silver streaming amortization |
|
— |
|
|
|
— |
|
|
|
2.56 |
|
|
|
— |
|
|
|
— |
|
Gross after provisional pricing and streaming impact |
|
1,963 |
|
|
|
3.97 |
|
|
|
21.53 |
|
|
|
0.93 |
|
|
|
1.20 |
|
Treatment and refining charges |
|
(9 |
) |
|
|
(0.26 |
) |
|
|
(1.56 |
) |
|
|
(0.03 |
) |
|
|
(0.24 |
) |
Net |
$ |
1,954 |
|
|
$ |
3.71 |
|
|
$ |
19.97 |
|
|
$ |
0.90 |
|
|
$ |
0.96 |
|
|
Three Months Ended December 31, 2022 |
||||||||||||||||||
|
Gold |
|
Copper |
|
Silver |
|
Lead |
|
Zinc |
||||||||||
|
(ounces) |
|
(pounds) |
|
(ounces) |
|
(pounds) |
|
(pounds) |
||||||||||
Consolidated sales: |
|
|
|
|
|
|
|
|
|
||||||||||
Gross before provisional pricing and streaming impact |
$ |
2,819 |
|
|
$ |
83 |
|
|
$ |
131 |
|
|
$ |
39 |
|
|
$ |
105 |
|
Provisional pricing mark-to-market |
|
20 |
|
|
|
12 |
|
|
|
7 |
|
|
|
4 |
|
|
|
9 |
|
Silver streaming amortization |
|
— |
|
|
|
— |
|
|
|
17 |
|
|
|
— |
|
|
|
— |
|
Gross after provisional pricing and streaming impact |
|
2,839 |
|
|
|
95 |
|
|
|
155 |
|
|
|
43 |
|
|
|
114 |
|
Treatment and refining charges |
|
(9 |
) |
|
|
(2 |
) |
|
|
(7 |
) |
|
|
(8 |
) |
|
|
(20 |
) |
Net |
$ |
2,830 |
|
|
$ |
93 |
|
|
$ |
148 |
|
|
$ |
35 |
|
|
$ |
94 |
|
Consolidated ounces / pounds sold (millions) |
|
1,610 |
|
|
|
22 |
|
|
|
7 |
|
|
|
40 |
|
|
|
83 |
|
Average realized price (per ounce/pound): (1) |
|
|
|
|
|
|
|
|
|
||||||||||
Gross before provisional pricing and streaming impact |
$ |
1,751 |
|
|
$ |
3.70 |
|
|
$ |
17.97 |
|
|
$ |
0.97 |
|
|
$ |
1.25 |
|
Provisional pricing mark-to-market |
|
12 |
|
|
|
0.54 |
|
|
|
1.00 |
|
|
|
0.11 |
|
|
|
0.11 |
|
Silver streaming amortization |
|
— |
|
|
|
— |
|
|
|
2.45 |
|
|
|
— |
|
|
|
— |
|
Gross after provisional pricing and streaming impact |
|
1,763 |
|
|
|
4.24 |
|
|
|
21.42 |
|
|
|
1.08 |
|
|
|
1.36 |
|
Treatment and refining charges |
|
(5 |
) |
|
|
(0.12 |
) |
|
|
(1.00 |
) |
|
|
(0.21 |
) |
|
|
(0.24 |
) |
Net |
$ |
1,758 |
|
|
$ |
4.12 |
|
|
$ |
20.42 |
|
|
$ |
0.87 |
|
|
$ |
1.12 |
|
|
Year Ended December 31, 2022 |
||||||||||||||||||
|
Gold |
|
Copper |
|
Silver |
|
Lead |
|
Zinc |
||||||||||
|
(ounces) |
|
(pounds) |
|
(ounces) |
|
(pounds) |
|
(pounds) |
||||||||||
Consolidated sales: |
|
|
|
|
|
|
|
|
|
||||||||||
Gross before provisional pricing and streaming impact |
$ |
10,461 |
|
|
$ |
337 |
|
|
$ |
533 |
|
|
$ |
145 |
|
|
$ |
583 |
|
Provisional pricing mark-to-market |
|
(2 |
) |
|
|
(11 |
) |
|
|
(11 |
) |
|
|
(1 |
) |
|
|
(9 |
) |
Silver streaming amortization |
|
— |
|
|
|
— |
|
|
|
73 |
|
|
|
— |
|
|
|
— |
|
Gross after provisional pricing and streaming impact |
|
10,459 |
|
|
|
326 |
|
|
|
595 |
|
|
|
144 |
|
|
|
574 |
|
Treatment and refining charges |
|
(43 |
) |
|
|
(10 |
) |
|
|
(46 |
) |
|
|
(11 |
) |
|
|
(73 |
) |
Net |
$ |
10,416 |
|
|
$ |
316 |
|
|
$ |
549 |
|
|
$ |
133 |
|
|
$ |
501 |
|
Consolidated ounces / pounds sold (millions) |
|
5,812 |
|
|
|
85 |
|
|
|
30 |
|
|
|
147 |
|
|
|
373 |
|
Average realized price (per ounce/pound): (1) |
|
|
|
|
|
|
|
|
|
||||||||||
Gross before provisional pricing and streaming impact |
$ |
1,800 |
|
|
$ |
3.94 |
|
|
$ |
17.90 |
|
|
$ |
0.98 |
|
|
$ |
1.56 |
|
Provisional pricing mark-to-market |
|
— |
|
|
|
(0.13 |
) |
|
|
(0.35 |
) |
|
|
— |
|
|
|
(0.02 |
) |
Silver streaming amortization |
|
— |
|
|
|
— |
|
|
|
2.45 |
|
|
|
— |
|
|
|
— |
|
Gross after provisional pricing and streaming impact |
|
1,800 |
|
|
|
3.81 |
|
|
|
20.00 |
|
|
|
0.98 |
|
|
|
1.54 |
|
Treatment and refining charges |
|
(8 |
) |
|
|
(0.12 |
) |
|
|
(1.55 |
) |
|
|
(0.07 |
) |
|
|
(0.20 |
) |
Net |
$ |
1,792 |
|
|
$ |
3.69 |
|
|
$ |
18.45 |
|
|
$ |
0.91 |
|
|
$ |
1.34 |
|
(1) |
|
Per ounce/pound measures may not recalculate due to rounding. |
Gold by-product metrics
Copper, silver, lead and zinc are by-products often obtained during the process of extracting and processing the primary ore-body. In our GAAP Consolidated Financial Statements, the value of these by-products is recorded as a credit to our CAS and the value of the primary ore is recorded as Sales. In certain instances, copper, silver, lead and zinc are co-products, or a significant resource in the primary ore-body, and the revenue is recorded as Sales in our GAAP Consolidated Financial Statements.
Gold by-product metrics are non-GAAP financial measures that serve as a basis for comparing the Company’s performance with certain competitors. As Newmont’s operations are primarily focused on gold production, “Gold by-product metrics” were developed to allow investors to view Sales, CAS per ounce and AISC per ounce calculations that classify all copper, silver, lead and zinc production as a by-product, even when copper, silver, lead or zinc is a significant resource in the primary ore-body. These metrics are calculated by subtracting copper, silver, lead and zinc sales recognized from Sales and including these amounts as offsets to CAS.
Gold by-product metrics are calculated on a consistent basis for the periods presented on a consolidated basis. These metrics are intended to provide supplemental information only, do not have any standardized meaning prescribed by GAAP and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP. Other companies may calculate these measures differently as a result of differences in the underlying accounting principles, policies applied and in accounting frameworks, such as in IFRS.
The following tables reconcile these non-GAAP measures to the most directly comparable GAAP measures:
|
Three Months Ended D ecember 31, |
|
Year Ended D ecember 31, |
||||||||||||
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Consolidated gold sales, net |
$ |
3,510 |
|
|
$ |
2,830 |
|
|
$ |
10,593 |
|
|
$ |
10,416 |
|
Consolidated other metal sales, net |
|
447 |
|
|
|
370 |
|
|
|
1,219 |
|
|
|
1,499 |
|
Sales |
$ |
3,957 |
|
|
$ |
3,200 |
|
|
$ |
11,812 |
|
|
$ |
11,915 |
|
|
|
|
|
|
|
|
|
||||||||
Costs applicable to sales |
$ |
2,303 |
|
|
$ |
1,780 |
|
|
$ |
6,699 |
|
|
$ |
6,468 |
|
Less: Consolidated other metal sales, net |
|
(447 |
) |
|
|
(370 |
) |
|
|
(1,219 |
) |
|
|
(1,499 |
) |
By-Product costs applicable to sales |
$ |
1,856 |
|
|
$ |
1,410 |
|
|
$ |
5,480 |
|
|
$ |
4,969 |
|
Gold sold (thousand ounces) |
|
1,751 |
|
|
|
1,610 |
|
|
|
5,420 |
|
|
|
5,812 |
|
Total Gold CAS per ounce (by-product) (1) |
$ |
1,060 |
|
|
$ |
876 |
|
|
$ |
1,011 |
|
|
$ |
855 |
|
|
|
|
|
|
|
|
|
||||||||
Total AISC |
$ |
3,143 |
|
|
$ |
2,320 |
|
|
$ |
9,239 |
|
|
$ |
8,459 |
|
Less: Consolidated other metal sales, net |
|
(447 |
) |
|
|
(370 |
) |
|
|
(1,219 |
) |
|
|
(1,499 |
) |
By-Product AISC |
$ |
2,696 |
|
|
$ |
1,950 |
|
|
$ |
8,020 |
|
|
$ |
6,960 |
|
Gold sold (thousand ounces) |
|
1,751 |
|
|
|
1,610 |
|
|
|
5,420 |
|
|
|
5,812 |
|
Total Gold AISC per ounce (by-product) (1) |
$ |
1,540 |
|
|
$ |
1,211 |
|
|
$ |
1,480 |
|
|
$ |
1,198 |
|
(1) |
|
Per ounce measures may not recalculate due to rounding. |
Conference Call Information
A conference call will be held on Thursday, February 22, 2024 at 10:00 a.m. Eastern Time (ET) and 4:00 p.m. ET; it will also be available on the Company’s website
10:00 a.m. ET Conference Call Details
Dial-In Number |
|
833.470.1428 |
|
|
404.975.48391 |
Dial-In Access Code |
|
960159 |
Conference |
|
|
Replay Number |
|
866.813.9403 |
Intl Replay Number |
|
929.458.6194 |
Replay Access Code |
|
672728 |
4:00 p.m. ET Conference Call Details
Dial-In Number |
|
833.470.1428 |
|
|
404.975.48391 |
Dial-In Access Code |
|
431401 |
Conference |
|
|
Replay Number |
|
866.813.9403 |
Intl Replay Number |
|
929.458.6194 |
Replay Access Code |
|
615787 |
1For toll-free phone numbers, refer to the following link: https://www.netroadshow.com/events/global-numbers?confId=49005
Webcast Details
Title:
10:00 a.m. ET URL: https://events.q4inc.com/attendee/998838961
4:00 p.m. ET URL: https://events.q4inc.com/attendee/548087872
The fourth quarter 2023 results and 2024 guidance will be available before the market opens on Thursday, February 22, 2024 on the “Investor Relations” section of the Company’s website at Newmont.com. Additionally, the conference call will be archived for a limited time on the Company’s website.
About
Cautionary Statement Regarding Forward Looking Statements, Including Outlook Assumptions:
This news release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are intended to be covered by the safe harbor created by such sections and other applicable laws. Where a forward-looking statement expresses or implies an expectation or belief as to future events or results, such expectation or belief is expressed in good faith and believed to have a reasonable basis. However, such statements are subject to risks, uncertainties and other factors, which could cause actual results to differ materially from future results expressed, projected or implied by the forward-looking statements. Forward-looking statements often address our expected future business and financial performance and financial condition; and often contain words such as “anticipate,” “intend,” “plan,” “will,” “would,” “estimate,” “expect,” “believe,” "pending" or “potential.” Forward-looking statements in this news release may include, without limitation, (i) estimates of future production and sales, including production outlook, average future production and upside potential, including our Full Potential initiatives and synergies; (ii) estimates of future costs applicable to sales and all-in sustaining costs; (iii) estimates of future capital expenditures, including development and sustaining capital; (iv) expectations regarding the Tanami Expansion 2, Ahafo North,
Future dividends beyond the dividend payable on March 28, 2024 to holders of record at the close of business on March 5, 2024 have not yet been approved or declared by the Board of Directors, and an annualized dividend payout or dividend yield has not been declared by the Board. Management’s expectations with respect to future dividends are “forward-looking statements” and the Company’s dividend policy is non-binding. The declaration and payment of future dividends remain at the discretion of the Board of Directors and will be determined based on Newmont’s financial results, balance sheet strength, cash and liquidity requirements, future prospects, gold and commodity prices, and other factors deemed relevant by the Board.
For a more detailed discussion of such risks and other factors that might impact future looking statements, see the Company’s Annual Report on Form 10-K for the year ended December 31, 2022 filed with the
Notice Regarding 2023 Results:
Newmont’s actual consolidated financial results remain subject to completion of our annual audit procedures for the year ended December 31, 2023 and final review by management. Our actual audited consolidated financial results for the year ended December 31, 2023 are expected to be reported in connection with the filing of our Annual Report on Form 10-K for the year ended December 31, 2023, which is expected to be filed on or about February 27, 2024. Our actual consolidated financial results may differ from the results included in this release, including as a result of audit adjustments and other developments that may arise between now and when the Form 10-K is finalized and filed. This release should not be viewed as a substitute for audited consolidated financial statements and related notes as of and for the year ended December 31, 2023 prepared in accordance with Generally Accepted Accounting Principles (“GAAP”). Accordingly, you should not place undue reliance on this release, which has been prepared by, and is the responsibility of, our management.
Notice Regarding Reserve and Resource:
The reserves stated herein were prepared in compliance with Subpart 1300 of Regulation S-K adopted by the
Estimates of Proven and Probable reserves are subject to considerable uncertainty. Such estimates are, or will be, to a large extent, based on the prices of gold, silver, copper, zinc, lead and molybdenum and interpretations of geologic data obtained from drill holes and other exploration techniques, which data may not necessarily be indicative of future results. If our reserve estimations are required to be revised using significantly lower gold, silver, zinc, copper, lead and molybdenum prices as a result of a decrease in commodity prices, increases in operating costs, reductions in metallurgical recovery or other modifying factors, this could result in material write-downs of our investment in mining properties, goodwill and increased amortization, reclamation and closure charges. Producers use pre-feasibility and feasibility studies for undeveloped ore bodies to derive estimates of capital and operating costs based upon anticipated tonnage and grades of ore to be mined and processed, the predicted configuration of the ore body, expected recovery rates of metals from the ore, the costs of comparable facilities, the costs of operating and processing equipment and other factors. Actual operating and capital cost and economic returns on projects may differ significantly from original estimates. Further, it may take many years from the initial phases of exploration until commencement of production, during which time, the economic feasibility of production may change.
Estimates of resources are subject to further exploration and development, are subject to additional risks, and no assurance can be given that they will eventually convert to future reserves. Inferred resources, in particular, have a great amount of uncertainty as to their existence and their economic and legal feasibility. Investors are cautioned not to assume that any part of all of the Inferred resource exists or is economically or legally mineable. The Company cannot be certain that any part or parts of the resource will ever be converted into reserves. In addition, if the price of gold, silver, copper, zinc, lead or molybdenum declines from recent levels, if production costs increase, grades decline, recovery rates decrease or if applicable laws and regulations are adversely changed, the indicated level of recovery may not be realized or mineral reserves or resources might not be mined or processed profitably. If we determine that certain of our mineral reserves or resources have become uneconomic, this may ultimately lead to a reduction in our aggregate reported mineral reserves and resources. Consequently, if our actual mineral reserves and resources are less than current estimates, our business, prospects, results of operations and financial position may be materially impaired. For additional information see the “Proven and Probable Reserve" and "Measured and Indicated and Inferred Resource" tables in
View source version on businesswire.com: https://www.businesswire.com/news/home/20240222310467/en/
Media Contact
globalcommunications@newmont.com
Investor Contact - Global
investor.relations@newmont.com
Investor Contact -
apac.investor.relations@newmont.com
Source: