UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
Form 10-Q
(Mark One)
☒QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the Quarterly Period Ended March 31, 2018
or
☐TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
Commission File Number: 001-31240
NEWMONT MINING CORPORATION
(Exact name of registrant as specified in its charter)
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Delaware |
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84-1611629 |
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(State or Other Jurisdiction of |
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(I.R.S. Employer |
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6363 South Fiddler’s Green Circle |
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Greenwood Village, Colorado |
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80111 |
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(Address of Principal Executive Offices) |
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(Zip Code) |
Registrant’s telephone number, including area code (303) 863-7414
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. ☒ Yes ☐ No
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). ☒ Yes ☐ No
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12-b2 of the Exchange Act.
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Large accelerated filer |
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Accelerated filer |
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Non-accelerated filer |
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(Do not check if a smaller reporting company.) |
Smaller reporting company |
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Emerging growth company |
☐ |
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12-b2 of the Exchange Act). ☐ Yes ☒ No
There were 533,486,402 shares of common stock outstanding on April 19, 2018.
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Condensed Consolidated Statements of Comprehensive Income (Loss) |
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MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
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NEWMONT MINING CORPORATION
FIRST QUARTER 2018 RESULTS AND HIGHLIGHTS
(unaudited, in millions, except per share, per ounce and per pound)
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Three Months Ended March 31, |
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2018 |
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2017 |
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Financial Results: |
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Sales |
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$ |
1,817 |
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$ |
1,690 |
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Gold |
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$ |
1,739 |
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$ |
1,619 |
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Copper |
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$ |
78 |
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$ |
71 |
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Costs applicable to sales (1) |
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$ |
1,029 |
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$ |
957 |
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Gold |
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$ |
982 |
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$ |
918 |
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Copper |
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$ |
47 |
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$ |
39 |
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Net income (loss) from continuing operations |
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$ |
169 |
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$ |
81 |
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Net income (loss) |
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$ |
191 |
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$ |
58 |
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Net income (loss) from continuing operations attributable to Newmont stockholders |
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$ |
170 |
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$ |
70 |
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Per common share, diluted: |
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Net income (loss) from continuing operations attributable to Newmont stockholders |
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$ |
0.32 |
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$ |
0.13 |
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Net income (loss) attributable to Newmont stockholders |
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$ |
0.36 |
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$ |
0.09 |
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Adjusted net income (loss) (2) |
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$ |
185 |
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$ |
136 |
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Adjusted net income (loss) per share, diluted (2) |
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$ |
0.35 |
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$ |
0.26 |
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Earnings before interest, taxes and depreciation and amortization (2) |
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$ |
637 |
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$ |
561 |
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Adjusted earnings before interest, taxes and depreciation and amortization (2) |
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$ |
644 |
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$ |
574 |
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Net cash provided by (used in) operating activities of continuing operations |
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$ |
266 |
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$ |
377 |
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Free Cash Flow (2) |
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$ |
35 |
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$ |
197 |
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Cash dividends declared per common share |
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$ |
0.140 |
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$ |
0.050 |
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Operating Results: |
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Consolidated gold ounces (thousands): |
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Produced |
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1,286 |
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1,327 |
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Sold |
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1,312 |
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1,328 |
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Attributable gold ounces (thousands): |
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Produced |
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1,209 |
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1,234 |
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Sold |
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1,231 |
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1,229 |
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Consolidated and attributable copper pounds (millions): |
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Produced |
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26 |
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29 |
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Sold |
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27 |
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26 |
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Average realized price: |
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Gold (per ounce) |
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$ |
1,326 |
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$ |
1,219 |
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Copper (per pound) |
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$ |
2.88 |
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$ |
2.68 |
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Consolidated costs applicable to sales: (1)(2) |
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Gold (per ounce) |
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$ |
748 |
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$ |
691 |
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Copper (per pound) |
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$ |
1.74 |
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$ |
1.50 |
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All-in sustaining costs: (2) |
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Gold (per ounce) |
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$ |
973 |
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$ |
900 |
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Copper (per pound) |
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$ |
2.07 |
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$ |
1.77 |
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(1) |
Excludes Depreciation and amortization and Reclamation and remediation. |
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(2) |
See “Non-GAAP Financial Measures” beginning on page 61. |
1
First Quarter 2018 Highlights
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Net income (loss): Delivered Net income (loss) from continuing operations attributable to Newmont stockholders of $170 million or $0.32 per diluted share, an increase of $100 million from the prior-year quarter primarily due to higher average realized gold prices. |
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Adjusted net income (loss): Delivered Adjusted net income (loss) of $185 million or $0.35 per diluted share, a 35% increase from the prior-year quarter (See “Non-GAAP Financial Measures” beginning on page 61). |
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Adjusted EBITDA: Generated $644 million in adjusted EBITDA, a 12% increase from the prior-year quarter (See “Non-GAAP Financial Measures” beginning on page 61). |
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Cash Flow: Reported Net cash provided by operating activities of continuing operations of $266 million, a 29% decrease from the prior-year quarter, and free cash flow of $35 million (See “Non-GAAP Financial Measures” beginning on page 61). |
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Portfolio improvements: Approved plans to begin the Yanacocha Sulfides feasibility study and added Chaquicocha Oxides as a new project in Peru; progressed Long Canyon Phase 2 in Nevada to pre-feasibility study; advanced Ahafo North in Ghana to definitive feasibility study; commenced development of the Tanami Power project in Australia. |
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Attributable gold production: Decreased 2% to 1.21 million ounces from lower leach activity at Yanacocha, lower grade and scheduled maintenance at Boddington, and lower grade and reduced recovery at CC&V associated with the stockpiling of concentrate for shipment to Nevada, partially offset by improved production from Merian, Tanami, Carlin and Ahafo. |
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Financial Strength: Ended the quarter with $3.1 billion cash on hand and a first quarter dividend declared of $0.14 per share, an increase of 180 percent over the prior-year quarter. |
Our global project pipeline
Newmont’s capital-efficient project pipeline supports stable production with improving margins and mine life. Near-term development capital projects are presented below. Funding for Subika Underground, Ahafo Mill Expansion, Twin Underground, Quecher Main and Tanami Power projects has been approved and these projects are in execution.
Subika Underground, Africa. This project leverages existing infrastructure and an optimized approach to develop Ahafo’s most promising underground resource. First production was achieved in June 2017 with commercial production expected in the second half of 2018. The project is expected to have an average annual gold production of between 150,000 and 200,000 ounces per year for the first five years beginning in 2019 with an initial mine life of approximately 11 years. Development capital costs (excluding capitalized interest) since approval were $106, of which $26 related to the first quarter of 2018.
Ahafo Mill Expansion, Africa. This project is designed to maximize resource value by improving production margins and accelerating stockpile processing. The project also supports profitable development of Ahafo’s highly prospective underground resources. First production is expected in the first half of 2019, with commercial production expected in the second half of 2019. The expansion is expected to have an average annual gold production of between 75,000 and 100,000 ounces per year for the first five years beginning in 2020. Development capital costs (excluding capitalized interest) since approval were $62, of which $20 related to the first quarter of 2018. Following the tragic construction accident at our Ahafo Mill Expansion that resulted in six fatalities, civil construction will remain suspended until Newmont and the authorities are satisfied that work can resume safely.
Twin Underground, North America. This project is a portal mine beneath Twin Creek’s Vista surface mine with similar mineralization. First production was achieved in August 2017, with commercial production expected in mid-2018. The expansion is expected to have an average annual gold production of between 30,000 and 40,000 ounces per year between 2018 and 2022. Development capital costs (excluding capitalized interest) since approval were $23, of which $10 related to the first quarter of 2018.
Quecher Main, South America. This project will add oxide production at Yanacocha, leverage existing infrastructure and enable potential future growth at Yanacocha. First production is expected in early 2019, with commercial production in the fourth quarter of 2019. Quecher Main extends the life of the Yanacocha operation to 2027 with average annual gold production of about 200,000 ounces per year (on a consolidated basis) between 2020 and 2025. Development capital costs (excluding capitalized interest) since approval were $21, of which $9 related to the first quarter of 2018.
Tanami Power, Australia. This project will lower power costs from 2019, mitigate fuel supply risk and reduce carbon emissions. The project includes a 450 kilometer natural gas pipeline to be constructed connecting the Tanami site to the Amadeus Gas Pipeline, and construction and operation of two on-site power stations. The gas supply, gas transmission and power purchase agreements are for a ten year term with options to extend.
We manage our wider project portfolio to maintain flexibility to address the development risks associated with our projects including permitting, local community and government support, engineering and procurement availability, technical issues, escalating costs and other associated risks that could adversely impact the timing and costs of certain opportunities.
2
NEWMONT MINING CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited, in millions except per share)
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Three Months Ended March 31, |
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2018 |
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2017 |
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Sales (Note 5) |
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$ |
1,817 |
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$ |
1,690 |
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Costs and expenses: |
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Costs applicable to sales (1) |
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1,029 |
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957 |
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Depreciation and amortization |
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301 |
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300 |
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Reclamation and remediation (Note 6) |
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28 |
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29 |
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Exploration |
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40 |
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36 |
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Advanced projects, research and development |
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34 |
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26 |
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General and administrative |
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59 |
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55 |
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Other expense, net (Note 7) |
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11 |
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17 |
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1,502 |
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1,420 |
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Other income (expense): |
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Other income, net (Note 8) |
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21 |
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(9) |
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Interest expense, net |
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(53) |
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(67) |
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(32) |
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(76) |
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Income (loss) before income and mining tax and other items |
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283 |
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194 |
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Income and mining tax benefit (expense) (Note 9) |
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(105) |
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(111) |
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Equity income (loss) of affiliates |
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(9) |
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(2) |
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Net income (loss) from continuing operations |
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169 |
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81 |
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Net income (loss) from discontinued operations (Note 10) |
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22 |
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(23) |
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Net income (loss) |
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191 |
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58 |
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Net loss (income) attributable to noncontrolling interests (Note 11) |
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1 |
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(11) |
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Net income (loss) attributable to Newmont stockholders |
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$ |
192 |
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$ |
47 |
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Net income (loss) attributable to Newmont stockholders: |
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Continuing operations |
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$ |
170 |
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$ |
70 |
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Discontinued operations |
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22 |
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(23) |
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$ |
192 |
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$ |
47 |
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Net income (loss) per common share (Note 12): |
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Basic: |
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Continuing operations |
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$ |
0.32 |
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$ |
0.13 |
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Discontinued operations |
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0.04 |
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(0.04) |
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$ |
0.36 |
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$ |
0.09 |
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Diluted: |
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Continuing operations |
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$ |
0.32 |
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$ |
0.13 |
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Discontinued operations |
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0.04 |
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(0.04) |
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$ |
0.36 |
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$ |
0.09 |
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Cash dividends declared per common share |
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$ |
0.140 |
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$ |
0.050 |
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(1) |
Excludes Depreciation and amortization and Reclamation and remediation. |
The accompanying notes are an integral part of the Condensed Consolidated Financial Statements.
3
NEWMONT MINING CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(unaudited, in millions)
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Three Months Ended March 31, |
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2018 |
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2017 |
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Net income (loss) |
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$ |
191 |
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$ |
58 |
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Other comprehensive income (loss): |
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Change in marketable securities, net of tax of $- and $-, respectively |
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2 |
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(7) |
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Foreign currency translation adjustments |
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(3) |
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4 |
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Change in pension and other post-retirement benefits, net of tax of $(1) and $(4), respectively |
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5 |
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6 |
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Change in fair value of cash flow hedge instruments, net of tax of $(1) and $(4), respectively |
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4 |
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9 |
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Other comprehensive income (loss) |
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$ |
8 |
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$ |
12 |
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Comprehensive income (loss) |
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$ |
199 |
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$ |
70 |
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Comprehensive income (loss) attributable to: |
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Newmont stockholders |
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$ |
200 |
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$ |
59 |
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Noncontrolling interests |
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(1) |
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11 |
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$ |
199 |
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$ |
70 |
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The accompanying notes are an integral part of the Condensed Consolidated Financial Statements.
4
NEWMONT MINING CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited, in millions)
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Three Months Ended March 31, |
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2018 |
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2017 |
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Operating activities: |
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Net income (loss) |
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$ |
191 |
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$ |
58 |
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Adjustments: |
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Depreciation and amortization |
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301 |
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300 |
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Stock-based compensation (Note 14) |
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19 |
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16 |
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Reclamation and remediation |
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26 |
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28 |
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Loss (income) from discontinued operations (Note 10) |
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(22) |
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23 |
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Deferred income taxes |
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10 |
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57 |
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Write-downs of inventory and stockpiles and ore on leach pads |
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82 |
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43 |
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Other operating adjustments |
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10 |
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36 |
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Net change in operating assets and liabilities (Note 23) |
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(351) |
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(184) |
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Net cash provided by (used in) operating activities of continuing operations |
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266 |
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377 |
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Net cash provided by (used in) operating activities of discontinued operations (1) |
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(3) |
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(6) |
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Net cash provided by (used in) operating activities |
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263 |
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371 |
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Investing activities: |
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Additions to property, plant and mine development |
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(231) |
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(180) |
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Proceeds from sales of investments |
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— |
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19 |
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Other |
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(5) |
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3 |
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Net cash provided by (used in) investing activities |
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(236) |
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(158) |
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Financing activities: |
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Dividends paid to common stockholders |
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(76) |
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(27) |
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Repurchase of common stock |
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(64) |
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— |
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Payments for withholding of employee taxes related to stock-based compensation |
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(39) |
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(13) |
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Funding from noncontrolling interests |
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32 |
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21 |
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Distributions to noncontrolling interests |
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(31) |
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(32) |
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Other |
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(1) |
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(1) |
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Net cash provided by (used in) financing activities |
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(179) |
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(52) |
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Effect of exchange rate changes on cash, cash equivalents and restricted cash |
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— |
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1 |
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Net change in cash, cash equivalents and restricted cash |
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(152) |
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162 |
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Cash, cash equivalents and restricted cash at beginning of period |
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3,298 |
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2,782 |
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Cash, cash equivalents and restricted cash at end of period |
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$ |
3,146 |
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$ |
2,944 |
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Reconciliation of cash, cash equivalents and restricted cash: |
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Cash and cash equivalents |
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$ |
3,111 |
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$ |
2,919 |
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Restricted cash included in Other current assets |
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1 |
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1 |
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Restricted cash included in Other noncurrent assets |
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34 |
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24 |
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Total cash, cash equivalents and restricted cash |
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$ |
3,146 |
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$ |
2,944 |
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(1) |
Net cash provided by (used in) operating activities of discontinued operations includes $(3) and $(3) related to the Holt royalty obligation and $- and $(3) related to closing costs for the sale of Batu Hijau, all of which were paid out of Cash and cash equivalents held for use for the three months ended March 31, 2018 and 2017, respectively. For additional information regarding the Company’s discontinued operations, see Note 10. |
The accompanying notes are an integral part of the Condensed Consolidated Financial Statements.
5
NEWMONT MINING CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited, in millions)
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At March 31, |
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At December 31, |
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2018 |
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2017 |
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ASSETS |
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Cash and cash equivalents |
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$ |
3,111 |
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$ |
3,259 |
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Trade receivables (Note 5) |
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211 |
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124 |
|
|
Other accounts receivables |
|
|
119 |
|
|
113 |
|
|
Investments (Note 17) |
|
|
59 |
|
|
62 |
|
|
Inventories (Note 18) |
|
|
657 |
|
|
679 |
|
|
Stockpiles and ore on leach pads (Note 19) |
|
|
640 |
|
|
676 |
|
|
Other current assets |
|
|
141 |
|
|
153 |
|
|
Current assets |
|
|
4,938 |
|
|
5,066 |
|
|
Property, plant and mine development, net |
|
|
12,311 |
|
|
12,338 |
|
|
Investments (Note 17) |
|
|
273 |
|
|
280 |
|
|
Stockpiles and ore on leach pads (Note 19) |
|
|
1,897 |
|
|
1,848 |
|
|
Deferred income tax assets |
|
|
500 |
|
|
549 |
|
|
Other non-current assets |
|
|
564 |
|
|
565 |
|
|
Total assets |
|
$ |
20,483 |
|
$ |
20,646 |
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES |
|
|
|
|
|
|
|
|
Debt (Note 20) |
|
$ |
7 |
|
$ |
4 |
|
|
Accounts payable |
|
|
331 |
|
|
375 |
|
|
Employee-related benefits |
|
|
220 |
|
|
309 |
|
|
Income and mining taxes payable |
|
|
216 |
|
|
248 |
|
|
Other current liabilities (Note 21) |
|
|
407 |
|
|
462 |
|
|
Current liabilities |
|
|
1,181 |
|
|
1,398 |
|
|
Debt (Note 20) |
|
|
4,088 |
|
|
4,061 |
|
|
Reclamation and remediation liabilities (Note 6) |
|
|
2,358 |
|
|
2,345 |
|
|
Deferred income tax liabilities |
|
|
596 |
|
|
595 |
|
|
Employee-related benefits |
|
|
394 |
|
|
386 |
|
|
Other non-current liabilities (Note 21) |
|
|
311 |
|
|
342 |
|
|
Total liabilities |
|
|
8,928 |
|
|
9,127 |
|
|
|
|
|
|
|
|
|
|
|
EQUITY |
|
|
|
|
|
|
|
|
Common stock |
|
|
857 |
|
|
855 |
|
|
Treasury stock |
|
|
(69) |
|
|
(30) |
|
|
Additional paid-in capital |
|
|
9,576 |
|
|
9,592 |
|
|
Accumulated other comprehensive income (loss) (Note 22) |
|
|
(169) |
|
|
(292) |
|
|
Retained earnings |
|
|
380 |
|
|
410 |
|
|
Newmont stockholders' equity |
|
|
10,575 |
|
|
10,535 |
|
|
Noncontrolling interests |
|
|
980 |
|
|
984 |
|
|
Total equity |
|
|
11,555 |
|
|
11,519 |
|
|
Total liabilities and equity |
|
$ |
20,483 |
|
$ |
20,646 |
|
The accompanying notes are an integral part of the Condensed Consolidated Financial Statements.
6
NEWMONT MINING CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
(unaudited, in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accumulated |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Additional |
|
Other |
|
|
|
|
|
|
|
|
|
|
||
|
|
|
Common Stock |
|
Treasury Stock |
|
Paid-In |
|
Comprehensive |
|
Retained |
|
Noncontrolling |
|
Total |
|
|||||||||||
|
|
|
Shares |
|
Amount |
|
Shares |
|
Amount |
|
Capital |
|
Income (Loss) |
|
Earnings |
|
Interests |
|
Equity |
|
|||||||
|
|
|
(in millions) |
|
|||||||||||||||||||||||
|
Balance at December 31, 2017 |
|
534 |
|
$ |
855 |
|
(1) |
|
$ |
(30) |
|
$ |
9,592 |
|
$ |
(292) |
|
$ |
410 |
|
$ |
984 |
|
$ |
11,519 |
|
|
Cumulative-effect adjustment of adopting ASU No. 2016-01 |
|
— |
|
|
— |
|
— |
|
|
— |
|
|
— |
|
|
115 |
|
|
(115) |
|
|
— |
|
|
— |
|
|
Net income (loss) |
|
— |
|
|
— |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
192 |
|
|
(1) |
|
|
191 |
|
|
Other comprehensive income (loss) |
|
— |
|
|
— |
|
— |
|
|
— |
|
|
— |
|
|
8 |
|
|
— |
|
|
— |
|
|
8 |
|
|
Dividends declared |
|
— |
|
|
— |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(76) |
|
|
— |
|
|
(76) |
|
|
Distributions declared to noncontrolling interests |
|
— |
|
|
— |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(31) |
|
|
(31) |
|
|
Cash calls requested from noncontrolling interests (1) |
|
— |
|
|
— |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
28 |
|
|
28 |
|
|
Repurchase and retirement of common stock |
|
(2) |
|
|
(3) |
|
— |
|
|
— |
|
|
(30) |
|
|
— |
|
|
(31) |
|
|
— |
|
|
(64) |
|
|
Withholding of employee taxes related to stock-based compensation |
|
— |
|
|
— |
|
(1) |
|
|
(39) |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(39) |
|
|
Stock-based awards and related share issuances |
|
3 |
|
|
5 |
|
— |
|
|
— |
|
|
14 |
|
|
— |
|
|
— |
|
|
— |
|
|
19 |
|
|
Balance at March 31, 2018 |
|
535 |
|
$ |
857 |
|
(2) |
|
$ |
(69) |
|
$ |
9,576 |
|
$ |
(169) |
|
$ |
380 |
|
$ |
980 |
|
$ |
11,555 |
|
|
(1) |
Cash calls requested from noncontrolling interests of $28 for the three months ended March 31, 2018 represent cash calls requested from Staatsolie for the Merian mine. Staatsolie paid an additional $4 related to prior periods during the three months ended March 31, 2018. |
The accompanying notes are an integral part of the Condensed Consolidated Financial Statements.
7
The interim Condensed Consolidated Financial Statements (“interim statements”) of Newmont Mining Corporation and its subsidiaries (collectively, “Newmont” or the “Company”) are unaudited. In the opinion of management, all adjustments (including normal recurring adjustments) and disclosures necessary for a fair presentation of these interim statements have been included. The results reported in these interim statements are not necessarily indicative of the results that may be reported for the entire year. These interim statements should be read in conjunction with Newmont’s Consolidated Financial Statements for the year ended December 31, 2017 filed on February 22, 2018 on Form 10-K and revisions filed April 26, 2018 on Form 8-K. The year-end balance sheet data was derived from the audited financial statements and, in accordance with the instructions to Form 10-Q, certain information and footnote disclosures required by United States (“U.S.”) generally accepted accounting principles (“GAAP”) have been condensed or omitted. References to “A$” refers to Australian currency and “C$” refers to Canadian currency.
Adoption of Accounting Standards Update No. 2016-15 and No. 2016-18
Certain amounts have been retrospectively reclassified for the three months ended March 31, 2017 to conform to the current period presentation and reflect the change in Newmont’s Consolidated Statements of Cash Flows required with the adoption of Accounting Standard Update (“ASU”) No. 2016-15 as of January 1, 2018 related to the classification of certain items on the statement of cash flows and ASU No. 2016-18 as of December 31, 2017 related to the inclusion of restricted cash in the statement of cash flows as further described in Note 3.
See Note 2 for the financial statement line items that were affected by the adoption of these standards.
Correction of Immaterial Errors
In the first quarter of 2018, Newmont corrected a computation error that was immaterial to all affected prior periods related to its methodology for calculating and recording Reclamation and remediation liabilities under Accounting Standards Codification (“ASC”) 410, “Asset Retirement and Environmental Obligations,” since the adoption of the standard as of January 1, 2003. The Company concluded that the error had the effect of understating its asset retirement obligations liability and the related asset retirement cost resulting in immaterial errors in accretion and depreciation expense.
In evaluating the impact of the error, the Company followed the guidance of ASC 250, “Accounting Changes and Error Corrections," Staff Accounting Bulletin (“SAB”) No. 99, “Assessing Materiality,” and SAB No. 108, “Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements.” The Company concluded that the error was not material to our results of operations or financial condition on a quantitative and qualitative basis and did not require previously filed reports with the Securities and Exchange Commission to be amended. Correction of the cumulative error would have a disproportionate impact on our results for the first quarter of 2018 and for the annual estimated income for 2018. As such, the Company has corrected the error by revising the prior period financial statements. The Company also elected to correct other individually insignificant errors not previously recorded that the Company concluded were immaterial to our previously issued Consolidated Financial Statements.
See Note 2 for the financial statement line items that were affected by the correction of the error.
Certain other prior period amounts have been reclassified to conform to the 2018 presentation.
8
NOTE 2 REVISION OF FINANCIAL STATEMENTS
The Company’s previously issued consolidated financial statements have been revised for the adoption of ASU No. 2016-15 and No. 2016-18 and the correction of the errors as follows:
|
|
|
Three Months Ended March 31, 2017 |
|
||||||||||
|
Condensed Consolidated Statement of Operations |
|
As Previously Reported |
|
Reclamation and Remediation Adjustments |
|
Other Adjustments |
|
As Revised |
|
||||
|
Sales |
|
$ |
1,659 |
|
$ |
— |
|
$ |
31 |
|
$ |
1,690 |
|
|
Costs applicable to sales |
|
$ |
933 |
|
$ |
— |
|
$ |
24 |
|
$ |
957 |
|
|
Depreciation and amortization |
|
$ |
293 |
|
$ |
1 |
|
$ |
6 |
|
$ |
300 |
|
|
Reclamation and remediation |
|
$ |
30 |
|
$ |
(1) |
|
$ |
— |
|
$ |
29 |
|
|
Income (loss) before income and mining tax and other items |
|
$ |
193 |
|
$ |
— |
|
$ |
1 |
|
$ |
194 |
|
|
Income and mining tax benefit (expense) |
|
$ |
(110) |
|
$ |
(1) |
|
$ |
— |
|
$ |
(111) |
|
|
Net income (loss): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing operations |
|
$ |
81 |
|
$ |
(1) |
|
$ |
1 |
|
$ |
81 |
|
|
Discontinued operations |
|
|
(23) |
|
|
— |
|
|
— |
|
|
(23) |
|
|
|
|
$ |
58 |
|
$ |
(1) |
|
$ |
1 |
|
$ |
58 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss (income) attributable to noncontrolling interests |
|
$ |
(12) |
|
$ |
1 |
|
$ |
— |
|
$ |
(11) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) attributable to Newmont stockholders: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing operations |
|
$ |
69 |
|
$ |
— |
|
$ |
1 |
|
$ |
70 |
|
|
Discontinued operations |
|
|
(23) |
|
|
— |
|
|
— |
|
|
(23) |
|
|
|
|
$ |
46 |
|
$ |
— |
|
$ |
1 |
|
$ |
47 |
|
|
Net income (loss) per common share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing operations |
|
$ |
0.13 |
|
$ |
— |
|
$ |
— |
|
$ |
0.13 |
|
|
Discontinued operations |
|
|
(0.04) |
|
|
— |
|
|
— |
|
|
(0.04) |
|
|
|
|
$ |
0.09 |
|
$ |
— |
|
$ |
— |
|
$ |
0.09 |
|
|
Diluted: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing operations |
|
$ |
0.13 |
|
$ |
— |
|
$ |
— |
|
$ |
0.13 |
|
|
Discontinued operations |
|
|
(0.04) |
|
|
— |
|
|
— |
|
|
(0.04) |
|
|
|
|
$ |
0.09 |
|
$ |
— |
|
$ |
— |
|
$ |
0.09 |
|
9
|
|
|
Three Months Ended March 31, 2017 |
|
|||||||||||||
|
Condensed Consolidated Statement of Cash Flows |
|
As Previously Reported |
|
Reclamation and Remediation Adjustments |
|
Other Adjustments |
|
ASU Adoption Revision |
|
As Revised |
|
|||||
|
Operating activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
$ |
58 |
|
$ |
(1) |
|
$ |
1 |
|
$ |
— |
|
$ |
58 |
|
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
$ |
293 |
|
$ |
1 |
|
$ |
6 |
|
$ |
— |
|
$ |
300 |
|
|
Reclamation and remediation |
|
$ |
29 |
|
$ |
(1) |
|
$ |
— |
|
$ |
| ||||