Item 6. SELECTED FINANCIAL DATA (dollars in millions, except per share)

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Item 6. SELECTED FINANCIAL DATA (dollars in millions, except per share)


	Years Ended December 31,
	2019		2018		2017		2016		2015
Sales	$	9,740	$	7,253	$	7,379	$	6,680	$	6,085
Income (loss) from continuing operations	$	2,956	$	319	$	(71)	$	(812)	$	(161)
Net income (loss)	$	2,884	$	380	$	(109)	$	(943)	$	280
Net income (loss) attributable to Newmont stockholders (1)	$	2,805	$	341	$	(114)	$	(629)	$	206
Income (loss) per common share:
Basic:
Continuing operations	$	3.92	$	0.53	$	(0.14)	$	(0.43)	$	(0.02)
Discontinued operations		(0.10)		0.11		(0.07)		(0.76)		0.42
	$	3.82	$	0.64	$	(0.21)	$	(1.19)	$	0.40
Diluted:
Continuing operations	$	3.91	$	0.53	$	(0.14)	$	(0.42)	$	(0.02)
Discontinued operations		(0.10)		0.11		(0.07)		(0.76)		0.42
	$	3.81	$	0.64	$	(0.21)	$	(1.18)	$	0.40
Dividends declared per common share	$	1.44	$	0.56	$	0.25	$	0.125	$	0.10

		At December 31,
	2019		2018		2017		2016		2015
Total assets	$	39,974	$	20,715	$	20,646	$	21,071	$	25,224
Debt, including current portion	$	6,138	$	4,044	$	4,040	$	4,599	$	5,842
Lease and other financing obligations, including current portion	$	696	$	217	$	25	$	16	$	21
Newmont stockholders’ equity	$	21,420	$	10,502	$	10,535	$	10,663	$	11,294

(1)	Net income (loss) attributable to Newmont stockholders includes discontinued operations of $(72), $61, $(38), $(403) and $219 net of tax in 2019, 2018, 2017, 2016 and 2015, respectively.

ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF CONSOLIDATED FINANCIAL CONDITION AND RESULTS OF OPERATIONS (dollars in millions, except per share, per ounce and per pound amounts)

The following Management’s Discussion and Analysis (“MD&A”) provides information that management believes is relevant to an assessment and understanding of the consolidated financial condition and results of operations of Newmont Corporation, formerly Newmont Goldcorp Corporation and Newmont Mining Corporation, and its affiliates and subsidiaries (collectively, “Newmont,” the “Company,” “our” and “we”). We use certain non-GAAP financial measures in our MD&A. For a detailed description of each of the non-GAAP measures used in this MD&A, please see the discussion under Non-GAAP Financial Measures beginning on page 78. This item should be read in conjunction with our Consolidated Financial Statements and the notes thereto included in this annual report.

The following MD&A generally discusses our consolidated financial condition and results of operations for 2019 and 2018 and year-to-year comparisons between 2019 and 2018. Discussions of our consolidated financial condition and results of operations for 2017 and year-to-year comparisons between 2018 and 2017 included in Item 7, Management’s Discussion and Analysis of Consolidated Financial Condition and Results of Operations, in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2018, filed with the Securities and Exchange Commission on February 21, 2019, are incorporated by reference into this MD&A.

Overview

Newmont is the world’s leading gold company and is the only gold company included in the S&P 500 Index and Fortune 500. We have been included in the Dow Jones Sustainability Index-World for 13 consecutive years and have adopted the World Gold Council’s Conflict-Free Gold Policy. We are engaged in the exploration for and acquisition of gold and copper properties. We have significant operations and/or assets in the United States (“U.S.”), Canada, Mexico, Dominican Republic, Peru, Suriname, Argentina, Chile, Australia and Ghana.

On January 14, 2019, the Company entered into a definitive agreement (as amended by the first amendment to the arrangement agreement, dated as of February 19, 2019, the “Arrangement Agreement”) to acquire all outstanding shares of Goldcorp, Inc. (“Goldcorp”), an Ontario corporation. On April 18, 2019 (“acquisition date”), pursuant to the Arrangement Agreement, Newmont completed the business acquisition of Goldcorp. Under the terms of the Arrangement Agreement, the Company acquired all outstanding common shares of Goldcorp in a primarily stock transaction (the “Newmont Goldcorp transaction”) for total cash and non-cash consideration of $9,456. Results of the Newmont Goldcorp transaction within this report are included for the period April 18 to December 31, 2019, unless otherwise indicated. For further information, see Note 3 to the Consolidated Financial Statements.

On March 10, 2019, the Company entered into an implementation agreement with Barrick Gold Corporation (“Barrick”) to establish a joint venture (“Nevada JV Agreement”). On July 1, 2019 (the “effective date”), Newmont and Barrick consummated the Nevada JV Agreement and established Nevada Gold Mines LLC (“NGM”), which combined certain mining operations and assets located in Nevada, and certain of Barrick’s Nevada mining operations and assets. In connection with the closing of the Nevada JV Agreement, Newmont and Barrick entered into an Amended and Restated Limited Liability Company Agreement of NGM, which is the primary operating document governing NGM. Pursuant to the terms of the Nevada JV Agreement, Newmont and Barrick hold economic interests in the joint venture equal to 38.5% and 61.5%, respectively. Barrick acts as the operator of NGM with overall management responsibility and is subject to the supervision and direction of NGM’s Board of Managers, which is comprised of two managers appointed by Newmont and three managers appointed by Barrick. Newmont and Barrick have an equal number of representatives on NGM’s technical, exploration and finance advisory committees. The following discussion and analysis, the consolidated financial results, results of operations, liquidity and financial conditions are presented based on our 38.5% proportionate share, unless otherwise indicated. For further information, see Note 4 to the Consolidated Financial Statements.

We continue to focus on improving safety and efficiency at our operations, maintaining leading environmental, social and governance practices, and sustaining our global portfolio of longer-life, lower cost mines to generate the financial flexibility we need to strategically reinvest in the business, strengthen the Company’s investment-grade balance sheet and return cash to shareholders.

Assets Held For Sale

In the fourth quarter of 2019, we entered into a binding agreement to sell the Red Lake complex in Ontario, Canada to Evolution Mining Limited (“Evolution”). Pursuant to the terms of the agreement, upon closing the transaction we will receive proceeds of $375 in cash, adjusted for normal working capital movements, with contingent payments of up to an additional $100 tied to new mineralization discoveries over a fifteen year period.

In the fourth quarter of 2019, we entered into a binding agreement to sell our 50% interest in Kalgoorlie Consolidated Gold Mines (“Kalgoorlie”), included as part of our Australia segment, to Northern Star Resources Limited (“Northern Star”). We completed the sale on January 2, 2020, and pursuant to the terms of the agreement, received proceeds of $800, including $25 that gives Northern Star specified exploration tenements, transitional services support and an option to negotiate exclusively for 120 days the purchase of our Kalgoorlie power business for fair market value.

See Note 5 to our Consolidated Financial Statements for further information.

Consolidated Financial Results

The details of our Net income (loss) from continuing operations attributable to Newmont stockholders are set forth below:


	Years Ended December 31,				Increase
	2019		2018		(decrease)
Net income (loss) from continuing operations attributable to Newmont stockholders	$	2,877	$	280	$	2,597
Net income (loss) from continuing operations attributable to Newmont stockholders per common share, diluted	$	3.91	$	0.53	$	3.38


	Years Ended December 31,				Increase
	2018		2017		(decrease)
Net income (loss) from continuing operations attributable to Newmont stockholders	$	280	$	(76)	$	356
Net income (loss) from continuing operations attributable to Newmont stockholders per common share, diluted	$	0.53	$	(0.14)	$	0.67

Results in 2019 compared to 2018 were impacted by the recognized gain on the formation of NGM as well as higher production due to the Newmont Goldcorp transaction and higher average realized gold prices.

The details of our Sales are set forth below. See Note 6 to our Consolidated Financial Statement for additional information.


	Years Ended December 31,				Increase		Percent
	2019		2018		(decrease)		Change (1)
Gold	$	9,049	$	6,950	$	2,099	30	%
Copper		210		303		(93)	(31)
Silver		253		—		253	N.M.
Lead		85		—		85	N.M.
Zinc		143		—		143	N.M.
	$	9,740	$	7,253	$	2,487	34	%

(1)	N.M. – Not meaningful


	Years Ended December 31,				Increase		Percent
	2018		2017		(decrease)		Change
Gold	$	6,950	$	7,064	$	(114)	(2)	%
Copper		303		315		(12)	(4)
	$	7,253	$	7,379	$	(126)	(2)	%

The following analysis summarizes consolidated sales for the year ended December 31, 2019:


	Year ended December 31, 2019
	Gold		Copper		Silver (1)		Lead (1)		Zinc (1)
	(ounces)		(pounds)		(ounces)		(pounds)		(pounds)
Consolidated sales:
Gross before provisional pricing and streaming impact	$	9,063	$	220	$	218	$	97	$	187
Provisional pricing mark-to-market		15		(1)		7		1		—
Silver streaming amortization		—		—		37		—		—
Gross after provisional pricing and streaming impact		9,078		219		262		98		187
Treatment and refining charges		(29)		(9)		(9)		(13)		(44)
Net	$	9,049	$	210	$	253	$	85	$	143
Consolidated ounces (thousands)/ pounds (millions) sold		6,465		80		15,987		108		179
Average realized price (per ounce/pound)(2):
Gross before provisional pricing and streaming impact	$	1,402	$	2.76	$	13.57	$	0.90	$	1.05
Provisional pricing mark-to-market		2		(0.01)		0.45		0.01		—
Silver streaming amortization		—		—		2.31		—		—
Gross after provisional pricing and streaming impact		1,404		2.75		16.33		0.91		1.05
Treatment and refining charges		(5)		(0.12)		(0.54)		(0.12)		(0.25)
Net	$	1,399	$	2.63	$	15.79	$	0.79	$	0.80

(1)	Silver, lead and zinc sales are the result of the Newmont Goldcorp transaction.

(2)	Per ounce measures may not recalculate due to rounding.

The following analysis summarizes consolidated sales for the year ended December 31, 2018 and 2017:


	Year ended December 31, 2018				Year ended December 31, 2017
	Gold		Copper		Gold		Copper
	(ounces)		(pounds)		(ounces)		(pounds)
Consolidated sales:
Gross before provisional pricing	$	6,982	$	323	$	7,086	$	314
Provisional pricing mark-to-market		(2)		(7)		10		14
Gross after provisional pricing		6,980		316		7,096		328
Treatment and refining charges		(30)		(13)		(32)		(13)
Net	$	6,950	$	303	$	7,064	$	315
Consolidated ounces (thousands)/ pounds (millions) sold		5,516		110		5,632		111
Average realized price (per ounce/pound)(1):
Gross before provisional pricing	$	1,266	$	2.94	$	1,259	$	2.83
Provisional pricing mark-to-market		—		(0.07)		2		0.12
Gross after provisional pricing		1,266		2.87		1,261		2.95
Treatment and refining charges		(6)		(0.13)		(6)		(0.12)
Net	$	1,260	$	2.74	$	1,255	$	2.83

(1)	Per ounce measures may not recalculate due to rounding.

The change in consolidated sales is due to:


	Years Ended December 31,
	2019 vs. 2018
	Gold		Copper		Silver		Lead		Zinc
	(ounces)		(pounds)		(ounces)		(pounds)		(pounds)
Increase (decrease) in consolidated ounces/pounds sold	$	1,201	$	(87)	$	262	$	98	$	187
Increase (decrease) in average realized price		897		(10)		—		—		—
Decrease (increase) in treatment and refining charges		1		4		(9)		(13)		(44)
	$	2,099	$	(93)	$	253	$	85	$	143


	Years Ended December 31,
	2018 vs. 2017
	Gold		Copper
	(ounces)		(pounds)
Increase (decrease) in consolidated ounces/pounds sold	$	(146)	$	(3)
Increase (decrease) in average realized price		30		(9)
Decrease (increase) in treatment and refining charges		2		—
	$	(114)	$	(12)

Gold sales increased 30% in 2019 compared to 2018 primarily due to new production from the Newmont Goldcorp transaction and higher average realized gold prices. For a complete discussion regarding variations in gold volumes, see Results of Consolidated Operations below.

Copper sales decreased 31% in 2019 compared to 2018 primarily due to copper being produced as a by-product upon the formation of NGM on July 1, 2019 compared to a co-product for the six months ended June 30, 2019, lower production at Boddington and lower average realized copper prices. See Results of Consolidated Operations below.

The silver sales during the year ended December 31, 2019 are associated with production at Peñasquito resulting from the Newmont Goldcorp transaction. Silver sales at all other Newmont operations are recognized as a by-product credit to Costs applicable to sales. See Results of Consolidated Operations below.

The lead sales during the year ended December 31, 2019 are associated with production at Peñasquito resulting from the Newmont Goldcorp transaction. See Results of Consolidated Operations below.

The zinc sales during the year ended December 31, 2019 are associated with production at Peñasquito resulting from the Newmont Goldcorp transaction. See Results of Consolidated Operations below.

The details of our Costs applicable to sales are set forth below. See Note 5 to our Consolidated Financial Statements for additional information.


	Years Ended December 31,				Increase		Percent
	2019		2018		(decrease)		Change (1)
Gold	$	4,663	$	3,906	$	757	19	%
Copper		145		187		(42)	(22)
Silver		181		—		181	N.M.
Lead		77		—		77	N.M.
Zinc		129		—		129	N.M.
	$	5,195	$	4,093	$	1,102	27	%

	(1)	N.M. – Not meaningful


	Years Ended December 31,				Increase		Percent
	2018		2017		(decrease)		Change
Gold	$	3,906	$	3,899	$	7	0	%
Copper		187		163		24	15
	$	4,093	$	4,062	$	31	1	%

Costs applicable to sales increased in 2019, compared to 2018, primarily due to new production associated with the Newmont Goldcorp transaction, partially offset by lower stockpile and leach pad inventory adjustments.

The details of our Depreciation and amortization are set forth below. See Note 5 to our Consolidated Financial Statements for additional information.


	Years Ended December 31,				Increase		Percent
	2019		2018		(decrease)		Change (1)
Gold	$	1,723	$	1,142	$	581	51	%
Copper		31		39		(8)	(21)
Silver		66		—		66	N.M.
Lead		29		—		29	N.M.
Zinc		55		—		55	N.M.
Other		56		34		22	65
	$	1,960	$	1,215	$	745	61	%

(1)	N.M. – Not meaningful


	Years Ended December 31,				Increase		Percent
	2018		2017		(decrease)		Change
Gold	$	1,142	$	1,191	$	(49)	(4)	%
Copper		39		37		2	5
Other		34		33		1	3
	$	1,215	$	1,261	$	(46)	(4)	%

Depreciation and amortization increased in 2019, compared to 2018, primarily due to new production associated with the Newmont Goldcorp transaction and higher amortization rates driven by the increase in fair value of the Goldcorp and NGM assets, partially offset by lower leach pad and stockpile inventory adjustments.

For discussion regarding variations in operations, see Results of Consolidated Operations below.

Reclamation and remediation expense was $280, $163 and $192 in 2019, 2018 and 2017, respectively. Reclamation and remediation expense increased in 2019, compared to 2018, primarily due to increased water management costs at Yanacocha, an update of the project cost estimates at the Dawn, Mule Canyon and Northumberland sites, increased water management costs at the Con mine and higher reclamation and remediation costs from the Newmont Goldcorp transaction.

Exploration expense was $265, $197 and $179 in 2019, 2018 and 2017, respectively. Exploration expense increased in 2019, compared to 2018, primarily due to the Newmont Goldcorp transaction and increased spending in the Guiana Shield in South America and at various projects in Africa partially offset by lower spend in Nevada due to the formation of NGM.

For additional information about proven and probable reserves Proven and Probable Reserves in Item 2, Properties.

Advanced projects, research and development expense includes development project management costs, feasibility studies and other project expenses that do not qualify for capitalization. Advanced projects, research and development expense was $150, $153, and $143 in 2019, 2018, and 2017, respectively. Advanced projects, research and development expense decreased slightly in 2019, compared to 2018, primarily due to lower spending associated with the Yanacocha Sulfides project and lower spend in Nevada due to the formation of NGM which was mostly offset by increased spending related to the Newmont Goldcorp transaction and at various projects in Africa.

General and administrative expense was $313, $244 and $237 in 2019, 2018 and 2017, respectively. General and administrative expense increased in 2019, compared to 2018, primarily due to the Newmont Goldcorp transaction. General and administrative expense as a percentage of Sales decreased in 2019 to 3.2%, compared to 3.4% in 2018.

Impairment of long-lived assets was $5, $369 and $14 in 2019, 2018 and 2017, respectively. Impairment of long-lived assets decreased in 2019, compared to 2018, primarily due to the impairment of long-lived assets at certain exploration properties and the Emigrant operation in Nevada, due to the Company’s decision to focus on advancing other projects and a change in mine plan resulting in a significant decrease in mine life at Emigrant, in the prior year, offset by non-cash write downs of obsolete assets at South America, Africa and Corporate and other in 2019.

Other expense, net was $295, $29 and $32 in 2019, 2018 and 2017, respectively. Other expense, net increased in 2019, compared to 2018, primarily due to investment banking and legal costs, severance, accelerated share award payments and consulting

services associated with the Newmont Goldcorp transaction and legal and hostile defense fees, investment banking fees and severance costs associated with the formation of NGM.

Gain on formation of Nevada Gold Mines was $2,390 in 2019, and represents the difference between the fair value of our 38.5% interest in NGM and the carrying value of the Nevada mining operations contributed on July 1, 2019. For additional information regarding the formation of NGM, see Note 4 to our Consolidated Financial Statement.

Other income, net was $327, $155 and $54 in 2019, 2018 and 2017, respectively. Other income, net increased in 2019, compared to 2018, primarily due to unrealized holding gains on investments, lower impairments of investments in 2019, pension and other post-employment benefit curtailment gains and business interruption insurance proceeds related to the Musselwhite fire, offset by a decrease in gain on investments sales resulting from the exchange of certain royalty interests for cash consideration and an equity ownership and warrants in Maverix Metals Inc. (“Maverix”) in June 2018 and foreign currency losses in 2019 compared to gains in 2018.

Interest expense, net was $301, $207 and $241 in 2019, 2018 and 2017, respectively. Capitalized interest totaled $26, $37 and $22 in each year, respectively. Interest expense, net increased in 2019 compared to 2018 primarily due to increased debt balances as a result of the Newmont Goldcorp transaction.

Income and mining tax expense was $832, $386 and $1,127 in 2019, 2018 and 2017, respectively. The effective tax rate is driven by a number of factors and the comparability of our income tax expense for the reported periods has been primarily affected by (i) variations in our income before income taxes; (ii) geographic distribution of that income; (iii) impacts of the changes in tax law; (iv) valuation allowances on tax assets; (v) percentage depletion; (vi) fluctuation in the value of the United States dollar and foreign currencies; (vii) and the impact of specific transactions and assessments. As a result, the effective tax rate will fluctuate, sometimes significantly, year to year. This trend is expected to continue in future periods.


	Year Ended
	December 31, 2019														December 31, 2018
								Income Tax			Federal and										Income Tax			Federal and
	Income			Effective				(Benefit)			State Cash		Mining Cash		Income		Effective				(Benefit)			State Cash		Mining Cash
	(Loss)(1)			Tax Rate				Provision			Tax/(Refund)		Tax/(Refund)		(Loss)(1)		Tax Rate				Provision			Tax/(Refund)		Tax/(Refund)
Nevada	$	351			13	%		$	46	(2)	$	—	$	25	$	(72)		49	%		$	(35)	(2)	$	27	$	—
CC&V		37			5				2	(3)		—		—		88		19				17	(3)		—		—
Corporate & Other		2,008	(4)		14				290	(5)		(4)		—		(296)		(36)				107	(5)		(21)		—
Total US		2,396			14				338			(4)		25		(280)		(32)				89			6		—
Australia		611			38				230	(6)		76		56		647		29				188	(6)		255		42
Ghana		425			34				144			148		—		183		33				60			89		—
Suriname		268			26				71			9		—		238		26				62			12		—
Peru		41			129				53	(7)		12		13		(40)		(73)				29	(7)		18		7
Canada		(58)			(103)				60	(8)		(42)		7		(9)		467				(42)	(8)		—		—
Mexico		(105)			11				(12)	(9)		126		11		—		—				—			—		—
Argentina		62			(94)				(58)	(10)		—		—		—		—				—			—		—
Other Foreign		53			11				6			—		—		(1)		—				—			—		—
Consolidated	$	3,693			23	%	(11)	$	832		$	325	$	112	$	738		52	%	(11)	$	386		$	380	$	49

(1)	Represents income (loss) from continuing operations by geographic location before income taxes and equity in affiliates. These amounts will not reconcile to the segment information for the reasons stated in Note 5.

(2)	Includes deduction for percentage depletion of $(49) and $(39) and mining taxes net of associated federal benefit of $19 and $18, respectively.

(3)	Includes deduction for percentage depletion of $(6) and $(10) and valuation allowance of $(9) and $9, respectively.

(4)	Includes the gain on formation of NGM. See Note 4 for further discussion.

(5)	Includes valuation allowance of $(310) and $150, expense related to the amendment of the 2014 U.S. federal income tax return and related carryback claims of $150 and $-, the expiration of capital loss carryover of $34 and $-, uncertain tax position reserve adjustment of $34 and $-, and SAB 118 adjustments of $- and $(48), respectively.

(6)	Includes mining taxes net of associated federal benefit of $48 and $36 and valuation allowance of $1 and $(45), respectively.

(7)	Includes mining taxes net of associated federal benefit of $12 and $9 and valuation allowance of $23 and $20, respectively.

(8)	Includes mining taxes net of associated federal benefit of $12 and $-, uncertain tax position reserve adjustment of $6 and $(34), valuation allowance of $(14) and $(7), and tax impacts from the exposure to fluctuations in foreign currency of $7 and $-, respectively.

(9)	Includes uncertain tax position reserve adjustment of $25 and $-, valuation allowance of $13 and $-, and tax impacts from the exposure to fluctuations in foreign currency of $(10) and $-, respectively.

(10)	Includes uncertain tax position reserve adjustments of $1 and $- and tax impacts from the exposure to fluctuations in foreign currency of $(91) and $-, respectively.

(11)	The consolidated effective income tax rate is a function of the combined effective tax rates for the jurisdictions in which we operate. Variations in the relative proportions of jurisdictional income could result in fluctuations to our combined effective income tax rate.

For additional information regarding our income and mining taxes, including details of our deferred tax assets, see Note 11 to our Consolidated Financial Statements.

Equity income (loss) of affiliates was $95, $(33) and $(16) in 2019, 2018 and 2017, respectively. The increase in 2019 is primarily due to income from the Pueblo Viejo mine of $124, an equity method investment acquired in the Newmont Goldcorp transaction. Since the acquisition date and on an attributable basis, earnings before income, taxes and depreciation and amortization (“Pueblo Viejo EBITDA”) related to the Pueblo Viejo mine was $245, based on 287,000 ounces of attributable gold production during the period. Pueblo Viejo EBITDA is a non-GAAP financial measure. See Non-GAAP Financial Measures beginning on page 78. For additional information regarding our Equity income (loss) of affiliates, see Note 12.

Net income (loss) from discontinued operations was $(72), $61 and $(38) in 2019, 2018 and 2017, respectively. The decrease in 2019 from 2018 was primarily due to the increase in the Holt royalty obligation driven by a decrease in discount rate and an increase in gold price, partially offset by an expected decrease in production from prior periods. For additional information regarding our discontinued operations, see Note 13 to our Consolidated Financial Statements.

Net loss (income) attributable to noncontrolling interests, net of tax from continuing operations was $(79), $(39), and $(5) in 2019, 2018, and 2017, respectively. The income from noncontrolling interests increased in 2019 compared to 2018 primarily due to a loss in 2018 at Yanacocha.

Other comprehensive income (loss) was $19, $(11) and $42 in 2019, 2018 and 2017, respectively. The increase in 2019 from 2018 was primarily due to an increased impact from cash flow hedge instruments and foreign currency translation adjustments, partially offset by the change in pension and other post-retirement benefits.

Results of Consolidated Operations

Newmont has developed gold equivalent ounces (“GEO”) metrics to provide a comparable basis for analysis and understanding of our operations and performance related to copper, silver, lead and zinc. Gold equivalent ounces are 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 ($2.75/lb.), Silver ($15/oz.), Lead ($0.90/lb.) and Zinc ($1.05/lb.) pricing for 2019, Gold ($1,250/oz.) and Copper ($2.70/lb.) pricing for 2018 and Gold ($1,200/oz.) and Copper ($2.25/lb.) pricing for 2017. For information regarding the changes to our reportable segments due to the Newmont Goldcorp transaction and the formation of NGM, see Note 5 to our Consolidated Financial Statements.


	Gold or Other			Costs Applicable						Depreciation and						All-In Sustaining
	Metals Produced			to Sales (1)						Amortization						Costs (2)
	2019	2018	2017	2019		2018		2017		2019		2018		2017		2019		2018		2017
Years Ended December 31,
Gold	(ounces in thousands)			($ per ounce sold)						($ per ounce sold)						($ per ounce sold)
North America	1,036	360	451	$	883	$	727	$	622	$	356	$	232	$	272	$	1,187	$	840	$	725
South America	1,385	1,049	1,048		646		660		709		234		201		229		814		804		870
Australia	1,431	1,523	1,573		734		709		672		164		133		134		908		845		806
Africa	1,065	850	822		597		645		655		295		301		277		791		794		785
Nevada	1,475	1,697	1,760		748		766		736		340		240		236		935		928		918
Total/Weighted-Average (3)	6,392	5,479	5,654	$	721	$	708	$	692	$	275	$	213	$	217	$	966	$	909	$	890
Attributable to Newmont	6,004	5,101	5,266

Gold equivalent ounces - other metals	(ounces in thousands)			($ per ounce sold)						($ per ounce sold)						($ per ounce sold)
North America (4)	443	—	—	$	886	$	—	$	—	$	342	$	—	$	—	$	1,339	$	—	$	—
Australia (5)	146	166	151		803		758		728		151		138		146		954		898		900
Nevada (6)	35	70	62		750		845		923		243		227		245		894		1,035		1,112
Total/Weighted-Average	624	236	213	$	858	$	782	$	784	$	291	$	162	$	174	$	1,222	$	935	$	961

Attributable gold from equity method investments (7)	(ounces in thousands)
Pueblo Viejo (40%)	287	—	—

(1)	Excludes Depreciation and amortization and Reclamation and remediation.

(2)	All-in sustaining costs is a non-GAAP financial measure. See Non-GAAP Financial Measures beginning on page 78.

(3)	All-in sustaining costs and Depreciation and amortization include expense for other regional projects.

(4)	For the year ended 2019, the Peñasquito mine in North America produced 15,860 thousand ounces of silver, 108 million pounds of lead and 187 million pounds of zinc. The Peñasquito mine in North America was acquired during the second quarter of 2019 as part of the Newmont Goldcorp transaction.

(5)	For the years ended 2019, 2018 and 2017, the Boddington mine in Australia produced 64 million, 77 million and 80 million pounds of copper, respectively.

(6)	For the years ended 2019, 2018 and 2017, the Phoenix mine in Nevada produced 15 million, 32 million and 33 million pounds of copper, respectively. The Phoenix mine was contributed to NGM effective July 1, 2019, at which point copper became a by-product.

(7)	Income and expenses of equity method investments are included in Equity income (loss) of affiliates. Refer to Note 12 to the Consolidated Financial Statements for further discussion of our equity method investments.

2019 compared to 2018

Consolidated gold ounces produced increased 17% due to:

	●	new production in North America at Éléonore, Porcupine, Peñasquito and Red Lake following the completion of the Newmont Goldcorp transaction, partially offset by lower ore grade milled and lower leach production at CC&V;

	●	new production in South America at Cerro Negro following the completion of the Newmont Goldcorp transaction and higher leach production at Yanacocha, partially offset by lower ore grade milled and lower recovery at Merian;

	●	lower production from Australia due to lower ore grade milled at Kalgoorlie and Boddington, partially offset by higher mill throughput at Tanami. The lower ore grade milled at Kalgoorlie was a result of lower ore grade mined and reduced ore tons mined from the pit due to geotechnical challenges;

	●	higher production from Africa primarily due to higher ore grade milled and mill throughput at Ahafo following the completion of the Ahafo Mill Expansion project in the fourth quarter of 2019, respectively; and

	●	attributable gold production at NGM was 710,000 ounces since its formation on July 1, 2019. The Carlin, Phoenix, Twin Creeks and Long Canyon mine sites in Nevada were included in the transaction with Barrick, establishing NGM.

Consolidated gold equivalent ounce – other metals production increased 164% primarily due to new production at Peñasquito in North America, partially offset by the classification of copper produced at Phoenix in Nevada as a by-product following the formation of NGM and lower ore grade milled at Boddington in Australia. Production at Peñasquito was impacted by the operation being placed into care and maintenance for 49 days in the first half and 25 days in the second half of 2019 following community-led blockades.

Costs applicable to sales per consolidated gold ounce increased 2% primarily due to unfavorable stripping and higher gold price driven royalties, partially offset by higher gold ounces sold and lower stockpile and leach pad inventory adjustments. Costs applicable to sales per consolidated gold equivalent ounce – other metals increased 10% primarily due to a high unit cost produced at Peñasquito as a result of the blockades, in addition to higher stockpile inventory adjustments and higher mobile equipment maintenance costs at Boddington in Australia.

Depreciation and amortization per gold ounce increased 29% primarily due to higher amortization rates from asset additions including new assets acquired following the completion of the Newmont Goldcorp transaction and formation of NGM, partially offset by higher gold ounces sold and lower stockpile and leach pad inventory adjustments. Depreciation and amortization per consolidated gold equivalent ounce – other metals increased 80% primarily due to higher amortization rates from asset additions including new assets acquired at Peñasquito following the completion of the Newmont Goldcorp transaction.

All-in sustaining costs per consolidated gold ounce increased 6% primarily due to higher sustaining capital spend and higher costs applicable to sales per gold ounce. All-in sustaining costs per gold equivalent ounce – other metals increased 31% primarily due to higher sustaining capital, higher treatment and refining cost and higher costs applicable to sales per gold equivalent ounce – other metals.

North America Operations


	Gold or Other			Costs Applicable						Depreciation and						All-In Sustaining
	Metals Produced			to Sales (1)						Amortization						Costs (2)
	2019	2018	2017	2019		2018		2017		2019		2018		2017		2019		2018		2017
Year Ended December 31,
Gold	(ounces in thousands)			($ per ounce sold)						($ per ounce sold)						($ per ounce sold)
CC&V	322	360	451	$	911	$	727	$	622	$	299	$	232	$	272	$	1,071	$	840	$	725
Red Lake	113	—	—		1,218		—		—		448		—		—		1,570		—		—
Musselwhite	3	—	—		2,248		—		—		4,912		—		—		8,174		—		—
Porcupine	223	—	—		786		—		—		281		—		—		935		—		—
Éléonore	246	—	—		809		—		—		302		—		—		1,013		—		—
Peñasquito	129	—	—		803		—		—		301		—		—		1,100		—		—
Total/Weighted-Average (3)	1,036	360	451	$	883	$	727	$	622	$	356	$	232	$	272	$	1,187	$	840	$	725

Gold equivalent ounces - other metals	(ounces in thousands)			($ per ounce sold)						($ per ounce sold)						($ per ounce sold)
Peñasquito (4)	443	—	—	$	886	$	—	$	—	$	342	$	—	$	—	$	1,339	$	—	$	—

(1)	Excludes Depreciation and amortization and Reclamation and remediation.

(2)	All-In Sustaining Costs is a non-GAAP financial measure. See Non-GAAP Financial Measures beginning on page 78.

(3)	All-in sustaining costs and Depreciation and amortization include expense for other regional projects.

(4)	For the year ended December 31, 2019, Peñasquito produced 15,860 thousand ounces of silver, 108 million pounds of lead and 187 million pounds of zinc. The Peñasquito mine was acquired during the second quarter of 2019 as part of the Newmont Goldcorp transaction.

2019 compared to 2018

CC&V, USA. Gold production decreased 11% primarily due to lower ore grades milled and lower leach production from Valley Leach Fill 1. Costs applicable to sales per gold ounce increased 25% primarily due to lower gold ounces sold and higher inventory adjustments. Depreciation and amortization per gold ounce increased 29% primarily due to higher amortization rates from lower reserve life and higher inventory adjustments. All-in sustaining costs per gold ounce increased 28% primarily due to higher costs applicable to sales per gold ounce.

Red Lake, Canada. Gold production at Red Lake was 113,000 gold ounces since the completion of the acquisition of the Red Lake mine site as part of the Newmont Goldcorp transaction. Production and cost metrics this year reflected on-going ramp up of mining at Cochenour, which achieved commercial production on April 1, 2019 and a temporary pause in mining at the Cochenour complex while buttress work was completed to strengthen controls against potential water ingress. Mining resumed in October 2019 following the completion of the work. In the fourth quarter of 2019, we entered into a binding agreement to sell the Red Lake complex. The transaction is expected to close in the first quarter of 2020. Refer to Note 5 for further information on the assets held for sale.

Musselwhite, Canada. Gold production at Musselwhite was limited to 3,000 gold ounces since the completion of the acquisition of the Musselwhite mine site as part of the Newmont Goldcorp transaction. There was no gold production in the second half of 2019 following a conveyor fire in March 2019. Musselwhite resumed mining activities in the third quarter of 2019 and will continue stockpiling ore mined until processing activities are restarted, which is expected in the first half of 2020. Since the fire, we collected $125 in insurance proceeds related to the conveyor fire of which $41 was recognized as an offset to the abnormal costs applicable to sales.

Porcupine, Canada. Gold production at Porcupine was 223,000 gold ounces since the completion of the acquisition of the Porcupine mine site as part of the Newmont Goldcorp transaction. Production and cost metrics this year were impacted negatively by the lower proportion of tons mined at Hoyle Pond, the highest-grade contributor to Porcupine, and costs related to early production at Borden, which achieved commercial production on October 1, 2019.

Éléonore, Canada. Gold production at Éléonore was 246,000 gold ounces since the completion of the acquisition of the Éléonore mine site as part of the Newmont Goldcorp transaction. Production and cost metrics this year were impacted positively by the commencement of mining from Horizon 5, with increased tonnages offsetting lower grade based on the mining sequence.

Peñasquito, Mexico. Gold and gold equivalent ounces – other metals production at Peñasquito were 129,000 gold ounces and 443,000 gold equivalent ounces – other metals, respectively, since the completion of the acquisition of the Peñasquito mine as part of the Newmont Goldcorp transaction. Production and cost metrics were impacted negatively by the operation being placed into care and maintenance for 49 days in the first half and 25 days in the second half of 2019 due to blockades.

South America Operations


	Gold or Other			Costs Applicable						Depreciation and						All-In Sustaining
	Metals Produced			to Sales (1)						Amortization						Costs (2)
	2019	2018	2017	2019		2018		2017		2019		2018		2017		2019		2018		2017
Year Ended December 31,	(ounces in thousands)				($ per ounce sold)						($ per ounce sold)						($ per ounce sold)
Yanacocha	527	515	535	$	756	$	813	$	939	$	213	$	207	$	250	$	959	$	967	$	1,150
Merian	524	534	513		565		512		467		177		167		179		689		627		544
Cerro Negro	334	—	—		603		—		—		317		—		—		753		—		—
Total / Weighted Average (3)	1,385	1,049	1,048	$	646	$	660	$	709	$	234	$	201	$	229	$	814	$	804	$	870
Yanacocha (48.65%) (4)	(257)	(244)	(260)
Merian (25.00%)	(131)	(134)	(128)
Attributable to Newmont	997	671	660

Attributable gold from equity method investments (5)	(ounces in thousands)
Pueblo Viejo (40%)	287	—	—

(1)	Excludes Depreciation and amortization and Reclamation and remediation.

(2)	All-in sustaining costs is a non-GAAP financial measure. See Non-GAAP Financial Measures beginning on page 78.

(3)	All-in sustaining costs and Depreciation and amortization include expense for other regional projects.

(4)	In December 2017, Yanacocha repurchased a 5% interest held by the International Finance Corporation, increasing Newmont’s ownership in Yanacocha from 51.35% to 54.05% as of December 31, 2017. In June 2018, Yanacocha sold a 5% ownership interest to a subsidiary of Sumitomo Corporation, reducing Newmont’s ownership from 54.05% to 51.35%. See Note 14 to our Consolidated Financial Statements.

(5)	Income and expenses of equity method investments are included in Equity income (loss) of affiliates. Refer to Note 12 to our Consolidated Financial Statements for further discussion of our equity method investments.

2019 compared to 2018

Yanacocha, Peru. Gold production increased 2% primarily due to higher leach production, partially offset by lower mill throughput and ore grade milled. Costs applicable to sales per gold ounce decreased 7% primarily due to lower stockpile and leach pad inventory adjustments partially offset by lower by-product credits from the sale of copper and silver concentrates. Depreciation and amortization per gold ounce increased 3% primarily due to higher amortization rates as a result of Quecher Main achieving commercial production in the fourth quarter of 2019. All-in sustaining costs per gold ounce decreased 1% primarily due to the lower costs applicable to sales per gold ounce, partially offset by higher sustaining capital and reclamation costs.

Merian, Suriname. Gold production decreased 2% primarily due to lower ore grade milled, lower recovery and a lower draw-down of in-circuit inventory as compared to last year, partially offset by higher mill throughput. Cost applicable to sales per gold ounce increased 10% primarily due to an unfavorable strip ratio and higher gold-price driven royalties. Depreciation and amortization per gold ounce increased 6% primarily due to higher amortization rates from asset additions. All-in sustaining costs per gold ounce increased 10% primarily due to higher costs applicable to sales per gold ounce.

Cerro Negro, Argentina. Gold production at Cerro Negro was 334,000 gold ounces since the completion of the acquisition of Cerro Negro as part of the Newmont Goldcorp transaction. Production and cost metrics this year were impacted positively by higher tonnages from Mariana Norte offsetting lower grade based on the mining sequence.

Pueblo Viejo, Dominican Republic. Gold production at Pueblo Viejo was 287,000 gold ounces on an attributable basis since the completion of the acquisition of our interest in the Pueblo Viejo mine site as part of the Newmont Goldcorp transaction. Refer to Note 12 to our Consolidated Financial Statements for further discussion of our equity method investments.

Australia Operations


	Gold or Other			Costs Applicable						Depreciation and						All-In Sustaining
	Metals Produced			to Sales (1)						Amortization						Costs (2)
	2019	2018	2017	2019		2018		2017		2019		2018		2017		2019		2018		2017
Years Ended December 31,
Gold	(ounces in thousands)			($ per ounce sold)						($ per ounce sold)						($ per ounce sold)
Boddington	703	709	787	$	809	$	786	$	714	$	149	$	140	$	147	$	942	$	891	$	838
Tanami	500	496	419		531		589		616		192		149		165		717		763		786
Kalgoorlie	228	318	367		948		721		645		116		74		54		1,114		813		717
Total/Weighted-Average (3)	1,431	1,523	1,573	$	734	$	709	$	672	$	164	$	133	$	134	$	908	$	845	$	806

Gold equivalent ounces - other metals	(ounces in thousands)			($ per ounce sold)						($ per ounce sold)						($ per ounce sold)
Boddington (4)	146	166	151	$	803	$	758	$	728	$	151	$	138	$	146	$	954	$	898	$	900

(1)	Excludes Depreciation and amortization and Reclamation and remediation.

(2)	All-in sustaining costs is a non-GAAP financial measure. See Non-GAAP Financial Measures beginning on page 78.

(3)	All-in sustaining costs and Depreciation and amortization include expense for other regional projects.

(4)	For the years ended 2019, 2018 and 2017, Boddington produced 64 million, 77 million and 80 million copper pounds, respectively.

2019 compared to 2018

Boddington, Australia. Gold production decreased 1% primarily due to lower ore grade milled and lower throughput, partially offset by higher recovery. Gold equivalent ounce – other metals production decreased 12% primarily due to lower ore grade milled. Costs applicable to sales per gold ounce increased 3% primarily due to lower gold ounces sold, higher stockpile inventory adjustments and higher mobile equipment maintenance costs, partially offset by a favorable Australian dollar foreign currency exchange rate. Costs applicable to sales per gold equivalent ounce – other metals increased 6% primarily due to lower gold equivalent ounces-other metals sold, higher stockpile inventory adjustments and higher mobile equipment maintenance costs, partially offset by a favorable Australian dollar foreign currency exchange rate. Depreciation and amortization per gold ounce increased 6% primarily due to higher stockpile inventory adjustments. Depreciation and amortization per gold equivalent ounce – other metals increased 9% primarily due to lower gold equivalent ounces – other metals sold and higher stockpile inventory adjustments. All-in sustaining costs per gold ounce increased 6% primarily due to higher costs applicable to sales per gold ounce and higher sustaining capital spend. All-in sustaining costs per gold equivalent ounce – other metals increased 6% primarily due to higher costs applicable to sales per gold equivalent ounce – other metals and higher sustaining capital spend.

Tanami, Australia. Gold production increased 1% primarily due to higher mill throughput, partially offset by lower ore grade milled. Costs applicable to sales per gold ounce decreased 10% primarily due to lower energy costs as a result of the Tanami Power Plant, higher allocation of costs to deferred mine development and a favorable Australian dollar foreign currency exchange rate. Depreciation and amortization per gold ounce increased 29% primarily due to incremental depreciation from the Tanami Power Plant achieving commercial production in the first quarter of 2019. All-in sustaining costs per gold ounce decreased 6% primarily due to lower costs applicable to sales per gold ounce, partially offset by higher sustaining capital spend.

Kalgoorlie, Australia. Gold production decreased 28% primarily due to lower ore grade milled and lower throughput. The lower ore grade milled was a result of lower ore grade mined and lower ore tons mined from the pit due to geotechnical challenges. Costs applicable to sales per gold ounce increased 31% primarily due to lower gold ounces sold and an unfavorable strip ratio, partially offset by a favorable Australian dollar foreign currency exchange rate. Depreciation and amortization per gold ounce increased 57% primarily due to lower gold ounces sold and higher amortization rates as a result of asset additions. All-in sustaining costs per gold ounce increased 37% primarily due to higher costs applicable to sales per gold ounce and higher sustaining capital spend. The Company entered into a binding agreement to sell its 50% interest in Kalgoorlie. The sale was completed on January 2, 2020. Refer to Note 5 for further information on the assets held for sale.

Africa Operations


	Gold or Other			Costs Applicable						Depreciation and						All-In Sustaining
	Metals Produced			to Sales (1)						Amortization						Costs (2)
	2019	2018	2017	2019		2018		2017		2019		2018		2017		2019		2018		2017
Years Ended December 31,	(ounces in thousands)			($ per ounce sold)						($ per ounce sold)						($ per ounce sold)
Ahafo	643	436	349	$	624	$	741	$	766	$	254	$	241	$	206	$	820	$	864	$	933
Akyem	422	414	473		558		546		573		356		363		327		718		705		663
Total / Weighted Average (3)	1,065	850	822	$	597	$	645	$	655	$	295	$	301	$	277	$	791	$	794	$	785

(1)	Excludes Depreciation and amortization and Reclamation and remediation.

(2)	All-in sustaining costs is a non-GAAP financial measure. See Non-GAAP Financial Measures beginning on page 78.

(3)	All-in sustaining costs and Depreciation and amortization include expense for other regional projects.

2019 compared to 2018

Ahafo, Ghana. Gold production increased 47% primarily due to higher ore grade milled and mill throughput. The higher mill throughput was partially due to the Ahafo Mill Expansion project achieving commercial production in the fourth quarter of 2019. Costs applicable to sales per gold ounce decreased 16% primarily due to higher gold ounces sold and lower stockpile inventory adjustments, partially offset by higher gold-price driven royalties. Depreciation and amortization per gold ounce increased 5% primarily due to higher amortization rates from asset additions, partially offset by higher gold ounces sold and lower stockpile inventory adjustments. All-in sustaining costs per gold ounce sold decreased 5% primarily due to lower costs applicable to sales per gold ounce, partially offset by higher sustaining capital spend.

Akyem, Ghana. Gold production increased 2% primarily due to higher mill throughput and ore grade milled partially offset by lower recovery. Costs applicable to sales per gold ounce increased 2% primarily due to higher gold-price driven royalties and higher equipment maintenance costs, partially offset by lower stockpile inventory adjustments. In December 2019, Akyem declared a dividend of $90 entitling the government of Ghana to a payment of $10 included in royalties. Depreciation and amortization per gold ounce decreased 2% primarily due to lower stockpile inventory adjustments. All-in sustaining costs per gold ounce increased 2% primarily due to reclamation costs and costs applicable to sales per gold ounce, partially offset by lower sustaining capital spend.

Nevada Operations


	Gold or Other			Costs Applicable						Depreciation and						All-In Sustaining
	Metals Produced			to Sales (1)						Amortization						Costs (2)
	2019	2018	2017	2019		2018		2017		2019		2018		2017		2019		2018		2017
Year Ended December 31,
Gold	(ounces in thousands)			($ per ounce sold)						($ per ounce sold)						($ per ounce sold)
Nevada Gold Mines	710	—	—	$	712	$	—	$	—	$	430	$	—	$	—	$	901	$	—	$	—
Carlin	404	927	972		878		843		830		261		237		229		1,076		1,027		1,035
Phoenix	96	241	239		981		854		854		281		201		227		1,149		1,043		1,035
Twin Creeks	169	359	375		638		668		606		171		170		170		800		820		741
Long Canyon	96	170	174		376		423		338		377		447		426		466		505		364
Total/Weighted-Average (3)	1,475	1,697	1,760	$	748	$	766	$	736	$	340	$	240	$	236	$	935	$	928	$	918

Gold equivalent ounces - other metals	(ounces in thousands)			($ per ounce sold)						($ per ounce sold)						($ per ounce sold)
Phoenix (4)	35	70	62	$	750	$	845	$	923	$	243	$	227	$	245	$	894	$	1,035	$	1,112

(1)	Excludes Depreciation and amortization and Reclamation and remediation.

(2)	All-in sustaining costs is a non-GAAP financial measure. See Non-GAAP Financial Measures beginning on page 78.

(3)	All-in sustaining costs and Depreciation and amortization include expense for other regional projects.

(4)	For the year ended 2019, 2018 and 2017, the Phoenix mine produced 15 million, 32 million and 33 million pounds of copper, respectively. The Phoenix mine site was contributed to NGM effective July 1, 2019, at which point copper became a by-product.

2019 compared to 2018

Nevada Gold Mines. Attributable gold production at Nevada Gold Mines was 710,000 gold ounces since its formation on July 1, 2019. During the second half of 2019, efforts were focused on achieving synergies and optimizing the operations. Depreciation and amortization per gold ounce reflects the fair value of assets upon the formation of NGM. Refer to Note 4 for further discussion on the formation of NGM.

Carlin, USA. The Carlin mine site was included in the formation of NGM. Gold production decreased by 56% primarily due to only six months of operations in 2019 as compared to a full year in 2018. Costs applicable to sales per gold ounce increased 4% primarily due to lower mill throughput rates and ore grade milled as a result of the annual Mill 6 outage in the first half of 2019. Depreciation and amortization per gold ounce increased 10% primarily due to lower gold ounces sold and asset additions. All-in sustaining costs per gold ounce was 5% higher primarily due to higher costs applicable to sales per gold ounce.

Phoenix, USA. The Phoenix mine site was included in the formation of NGM. Gold production decreased by 60% primarily due to only six months of operations in 2019 as compared to a full year in 2018. Gold equivalent ounces – other metals production decreased 50% primarily due to six months of operations in 2019 as compared to a full year in 2018. Costs applicable to sales per gold ounce increased 15% primarily due to lower mill throughput rates and ore grade processed, in addition to higher concentrate inventory adjustments. Costs applicable to sales per gold equivalent ounce – other metals decreased 11% primarily due to higher ore grade milled. Depreciation and amortization per gold ounce increased 40% primarily due to higher amortization rates as a result of lower reserve life. Depreciation and amortization per gold equivalent ounce – other metals increased 7% primarily due to higher amortization rates as a result of lower reserve life. All-in sustaining costs per gold ounce increased 10% primarily due to higher costs applicable to sales per gold ounce partially offset by lower sustaining capital spend on a per ounce basis. All-in sustaining costs per gold equivalent ounce – other metals decreased 14% primarily due to lower costs applicable to sales per gold ounce and lower sustaining capital spend.

Twin Creeks, USA. The Twin Creeks mine site was included in the formation of NGM. Gold production decreased 53% primarily due to six months of operations in 2019 as compared to a full year in 2018. Costs applicable to sales per gold ounce decreased 4% primarily due to lower stockpile and leach pad inventory adjustments. Depreciation and amortization per gold ounce was in line with the prior year. All-in sustaining costs per gold ounce decreased 2% primarily due to lower costs applicable to sales per gold ounce partially offset by higher sustaining capital spend on per ounce basis.

Long Canyon, USA. The Long Canyon mine site was included in the formation of NGM. Gold production decreased 44% primarily due to six months of operations in 2019 as compared to a full year in 2018. Costs applicable to sales per gold ounce decreased 11% primarily due to proportionately higher leach production as a result of timing of leach recoveries. Depreciation and amortization per gold ounce decreased 16% primarily due to the proportionately higher leach production. All-in sustaining costs per gold ounce decreased 8% primarily due to lower costs applicable to sales per gold ounce partially offset by higher sustaining capital spend on per ounce basis.

Foreign Currency Exchange Rates

Our foreign operations sell their gold, copper, silver, lead and zinc production based on U.S. dollar metal prices. Fluctuations in foreign currency exchange rates do not have a material impact on our revenue since gold, copper, silver, lead and zinc are sold throughout the world in U.S. dollars. Despite selling gold and silver in London, we have no exposure to the euro or the British pound.

Foreign currency exchange rates can increase or decrease profits to the extent costs are paid in foreign currencies, including the Australian dollar, the Peruvian sol, the Surinamese dollar, the Canadian dollar, the Mexican peso and the Argentine peso. Approximately 43%, 33% and 32% of our Costs applicable to sales were paid in currencies other than the U.S. dollar in 2019, 2018 and 2017, respectively, including approximately 21% denominated in the Australian dollar and 9% denominated in the Canadian dollar in the current year. Variations in the local currency exchange rates in relation to the U.S. dollar at our foreign mining operations decreased Costs applicable to sales by $13 per ounce, net of hedging losses, in 2019 compared to 2018, primarily in Australia.

Our Cerro Negro mine, which was acquired as part of the Newmont Goldcorp transaction and located in Argentina, is a U.S. dollar functional currency entity. On September 1, 2019, Argentina’s central bank enacted a number of temporary foreign currency controls in an effort to stabilize the local currency (“currency controls”). These currency controls include conversion requirements of export proceeds to local currency, limits on banks’ use of foreign currency, restrictions on individuals’ foreign currency purchases, and the reintroduction of affidavits to verify foreign currency transactions comply with regulations. Argentina has also been considered a hyperinflationary environment with a cumulative inflation rate of over 100% for the last three years. Since the currency controls were enacted, the Company is required to convert metal sales proceeds to the Argentine Peso within five business days from receipt of cash at Cerro Negro and obtain central bank approval for any dividends or distributions to the parent company. While we have balances denominated in Argentine pesos that relate to accounts payable and employee-related liabilities and tax receivables and liabilities, the majority of Cerro Negro’s activity has historically been denominated in U.S. dollars. Additionally, a component of the deferred tax liability is carried in Argentine pesos, which is impacted by fluctuations in the Argentine peso exchange rate. The currency controls did not have a significant impact on our financial statements in 2019. We have been successful in distributing cash

from Cerro Negro through registered intercompany debt and do not expect the currency controls to have a significant impact on our liquidity.

Liquidity and Capital Resources

Liquidity Overview

We have a disciplined cash management strategy of maintaining financial flexibility to execute our capital priorities and provide long-term value to our shareholders. Consistent with that strategy, we aim to self-fund development projects and make strategic partnerships focused on profitable growth, while reducing our debt and returning cash to stockholders through share repurchases and dividends.

At December 31, 2019, we had $2,243 in Cash and cash equivalents, of which $1,186 was held in foreign subsidiaries and is primarily held in U.S dollar denominated accounts with the remainder in foreign currencies readily convertible to U.S. dollars. At December 31, 2019, $407 of the consolidated cash and cash equivalents was attributable to noncontrolling interests primarily related to our Peru and Suriname operations, which is being held to fund those operations. At December 31, 2019, $1,034 in consolidated cash and cash equivalents ($636 attributable to Newmont) was held at certain foreign subsidiaries that, if repatriated, may be subject to withholding taxes. We expect that there would be no additional tax burden upon repatriation after considering the cash cost associated with the withholding taxes. We believe that our liquidity and capital resources from U.S. operations are adequate to fund our U.S. operations and corporate activities.

In December 2019, our Board of Directors authorized a stock repurchase program for up to $1 billion of common stock to be repurchased in the next 12 months. Through December 31, 2019, we have executed trades for $506 of common stock repurchases, of which $479 were settled as of December 31, 2019 and the remaining $27 were settled on January 2, 2020. In January 2020, we announced a plan to increase our quarterly dividend from $0.14 per share to $0.25 per share upon approval and declaration of the first quarter dividend in April 2020.

We believe our existing consolidated cash and cash equivalents, available capacity on our revolving credit facility, and cash generated from continuing operations will be adequate to satisfy working capital needs, fund future growth, meet debt obligations, pay dividends and meet other liquidity requirements for the foreseeable future. At December 31, 2019, no borrowings were outstanding under our revolving credit facility.

Our financial position was as follows:


	At December 31,		At December 31,
	2019		2018
Debt	$	6,138	$	4,044
Lease and other financing obligations		696		217
Less: Cash and cash equivalents		2,243		3,397
Net Debt	$	4,591	$	864
Borrowing capacity on revolving credit facility	$	2,940	$	2,914

Cash Flows

Our Consolidated Statements of Cash Flows are summarized as follows:


	Years Ended December 31,
	2019		2018		2017
Net cash provided by (used in) operating activities of continuing operations	$	2,876	$	1,837	$	2,139
Net cash provided by (used in) operating activities of discontinued operations		(10)		(10)		(15)
Net cash provided by (used in) operating activities	$	2,866	$	1,827	$	2,124

Net cash provided by (used in) investing activities	$	(1,226)	$	(1,177)	$	(946)

Net cash provided by (used in) financing activities	$	(2,777)	$	(455)	$	(668)

Net cash provided by (used in) operating activities of continuing operations was $2,876 in 2019, an increase of $1,039 from 2018 primarily due to higher sales from the Newmont Goldcorp transaction and a higher average realized gold price, partially offset

by amounts paid for Newmont Goldcorp transaction and integration costs, costs incurred for the Nevada JV Agreement transaction and integration costs, higher interest payments due to higher debt balances and costs incurred while the Peñasquito and Musselwhite mines were not operational.

Net cash provided by (used in) investing activities was $(1,226) in 2019, an increase in cash used of $49 from 2018, primarily due to Additions to property, plant and mine development in 2019 driven by higher capital expenditures on sustaining capital and higher Purchases of investments during the year ended 2019, primarily related to the acquisition of convertible debt issued by Continental Gold, Inc. and marketable securities, partially offset by cash acquired in the Newmont Goldcorp transaction, Return of investment from equity method investees of $132 in 2019 related to Pueblo Viejo, higher Proceeds from sales of investments and $20 in proceeds from the sale of exploration properties in Nevada in 2019.

Net cash provided by (used in) financing activities was $(2,777) in 2019, an increase in cash used of $2,322 from 2018, primarily due to the repayment of a term loan and revolving credit facility acquired in the Newmont Goldcorp transaction totaling $1,250, repayment of the 2019 Senior Notes totaling $626, higher Dividends paid to common stockholders due to the payment of a one-time special dividend of $470 and an increase in the number of shares outstanding beginning in the second quarter of 2019, higher Repurchases of common stock, higher Payments on lease and other financing obligations and higher net distributions to noncontrolling interests, partially offset by net proceeds of $690 from the issuance of the 2029 Senior Notes in 2019.

Capital Expenditures

Cash generated from operations is used to execute our capital priorities, which include sustaining and developing our global portfolio of long-lived assets. We consider sustaining capital as those capital expenditures that are necessary to maintain current production and execute the current mine plan. Capital expenditures to develop new operations, or related to projects at existing operations where those projects will materially benefit the operation, are considered non-sustaining or development capital. In addition, with the successful consummation of the Newmont Goldcorp transaction, the Company is focused on reprioritization of development projects in its pipeline to ensure that it executes on its capital priorities and provides long-term value to shareholders. The Company’s decision to reprioritize or abandon a development project could result in a future impairment charge.

For the years ended December 31, 2019, 2018 and 2017, we had Additions to property, plant and mine development as follows:


	2019						2018						2017
	Development		Sustaining				Development		Sustaining				Development		Sustaining
	Projects		Capital		Total		Projects		Capital		Total		Projects		Capital		Total
North America	$	81	$	295	$	376	$	—	$	29	$	29	$	—	$	33	$	33
South America		173		124		297		118		80		198		81		75		156
Australia		61		185		246		32		150		182		49		165		214
Africa		123		123		246		224		80		304		138		69		207
Nevada		50		207		257		44		249		293		22		248		270
Corporate and other		11		21		32		1		12		13		—		10		10
Accrual basis	$	499	$	955	$	1,454	$	419	$	600	$	1,019	$	290	$	600	$	890
Decrease (increase) in non-cash adjustments						9						13						(24)
Cash basis					$	1,463					$	1,032					$	866

For the year ended December 31, 2019, development projects included Borden, Musselwhite Materials Handling and Éléonore Lower Mine Material Handling System in North America; Quecher Main and Yanacocha Sulfides in South America; Tanami Expansion 2 in Australia; Ahafo North, Subika Underground and Ahafo Mill Expansion in Africa; and Goldrush Complex and Turquoise Ridge 3rd shaft in Nevada. For the year ended December 31, 2018, development projects included Quecher Main and the Merian crusher in South America; Tanami Expansion 2 in Australia; Ahafo North, Subika Underground and Ahafo Mill Expansion in Africa; and Twin Creeks Underground in Nevada. For the year ended December 31, 2017, development projects included the Merian crusher and Quecher Main in South America; Tanami Expansions in Australia; Subika Underground and Ahafo Mill Expansion in Africa; and Twin Creeks Underground and Long Canyon in Nevada.

For the years ended December 31, 2019, 2018 and 2017, sustaining capital included the following:

	●	North America. Capital expenditures primarily related to surface and underground mine development, tailings facility construction, mining equipment and capitalized component purchases;

	●	South America. Capital expenditures primarily related to capitalized component purchases, mining equipment, reserve drilling conversion, underground mine development, tailings facility construction and infrastructure improvements;

	●	Australia. Capital expenditures primarily related to equipment and capitalized component purchases, underground mine development and tailings and support facilities;

	●	Africa. Capital expenditures primarily related to underground mine development, tailings facility construction, capitalized component purchases and tailings facility expansion; and

	●	Nevada. Capital expenditures primarily related to surface and underground mine development, tailings facility construction and capitalized component purchases.

During 2019, 2018 and 2017, $112, $117 and $77, respectively, of drilling and related costs were capitalized and included in mine development costs. These capitalized costs included $23 at North America, $20 at South America, $51 at Australia, $11 at Africa and $7 at Nevada in 2019; $3 at North America, $13 at South America, $66 at Australia, $8 at Africa and $27 at Nevada in 2018 and, $1 at North America, $6 at South America, $44 at Australia, $5 at Africa and $21 at Nevada in 2017.

During 2019, 2018 and 2017, $43, $40 and $11, respectively, of pre-stripping costs were capitalized and included in mine development costs. Pre-stripping costs included the Quecher Main project at Yanacocha in South America and South Arturo in Nevada in 2019; the Quecher Main project at Yanacocha in South America and Globe Hill at CC&V in North America in 2018; and Globe Hill at CC&V in North America and the Goldstar pit at Carlin in Nevada in 2017.

Additionally, in 2019, we completed the Tanami Power project in Australia which included the construction of a gas pipeline to the Tanami site, and construction and operation of two on-site power stations. The gas pipeline and two on-site power stations qualify as finance leases with lease obligations of $189, of which $26 was current as of December 31, 2019. These leases qualified as build-to-suit leases with financing obligations under the build-to-suit arrangements of $210 and $14 as of December 31, 2018 and 2017, respectively, of which $24 and $- was current as of December 31, 2018 and 2017, respectively.

Refer to Note 5 to our Consolidated Financial Statements and Part II, Item 7 Non-GAAP Financial Measures All-In sustaining Costs for further information.

Debt and Corporate Revolving Credit Facilities

In September 2019, we completed a public offering of $700 unsecured Senior Notes due October 2029 (“2029 Notes”). Net proceeds from the 2029 Notes were $690. The proceeds from this issuance were primarily used to repay the outstanding balance on the 2019 Senior Notes of $626 on October 1, 2019.

On April 4, 2019, we entered into a $3,000 revolving credit facility (“New Credit Agreement”) with a syndicate of financial institutions that expires in April 2024. The New Credit Agreement provides for borrowings in U.S. dollars and contains a letter of credit sub-facility. Facility fees vary based on the credit ratings of our senior, uncollateralized, non-current debt. Borrowings under the facility bear interest at a market based rate plus a margin determined by our credit rating. The New Credit Agreement replaces our existing credit agreement dated as of May 20, 2011, as amended and restated as of May 25, 2017 (“Existing Credit Agreement”). Outstanding letters of credit under the Existing Credit Agreement were transferred to the New Credit Agreement Debt covenants under the New Credit Agreement are substantially the same as the Existing Credit Agreement.

Upon closing of the Newmont Goldcorp transaction, we paid the outstanding principal balances of Goldcorp’s term loan of $400 and Goldcorp’s revolving credit facility of $850. Additionally, we completed a like-for-like exchange for most of the outstanding notes issued by Goldcorp (“Existing Goldcorp notes”), with an aggregate principal amount of $2,000, for new notes issued by Newmont (the “New Newmont notes”) and nominal cash consideration. The New Newmont notes, issued April 22, 2019, and the Existing Goldcorp notes that were not tendered for exchange, consist of $472 and $78 of 3.625% notes due June 9, 2021, $810 and $190 of 3.70% notes due March 15, 2023 and $444 and $6 of 5.45% notes due June 9, 2044, respectively. Pursuant to registration rights issued with the New Newmont notes, the Company filed Form S-4 on June 28, 2019, which was declared effective on July 9, 2019. The exchange for the registered notes was completed on August 9, 2019.

For further information, see Note 25 to our Consolidated Financial Statements.

Debt Covenants

Our senior notes and revolving credit facility contain various covenants and default provisions including payment defaults, limitation on liens, leases, sales and leaseback agreements and merger restrictions. Furthermore, our senior notes and corporate

revolving credit facility contain covenants that include, limiting the sale of all or substantially all of our assets, certain change of control provisions and a negative pledge on certain assets.

The corporate revolving credit facility contains a financial ratio covenant requiring us to maintain a net debt (total debt net of cash and cash equivalents) to total capitalization ratio of less than or equal to 62.50% in addition to the covenants noted above.

At December 31, 2019 and 2018, we were in compliance with all debt covenants and provisions related to potential defaults.

Shelf Registration Statement

In September 2018, we filed with the SEC a shelf registration statement on Form S-3 which enables us to issue an indeterminate number or amount of common stock, preferred stock, debt securities, guarantees of debt securities and warrants from time to time at indeterminate prices, subject to the limitations of the Delaware General Corporation Law, our certification of incorporation and our bylaws. It also included the resale of an indeterminate amount of common stock, preferred stock and debt securities from time to time upon exercise of warrants or conversion of convertible securities.

Contractual Obligations

Our contractual obligations at December 31, 2019 are summarized as follows:


	Payments Due by Period
			Less than						More than
Contractual Obligations	Total		1 Year		1-3 Years		4-5 Years		5 Years
Debt(1)	$	9,881	$	274	$	3,226	$	366	$	6,015
Finance lease and other financing obligations		977		101		268		144		464
Remediation and reclamation liabilities (2)		4,797		173		533		332		3,759
Employee-related benefits (3)		1,315		434		212		139		530
Uncertain income tax liabilities and interest (4)		462		462		—		—		—
Operating leases		191		28		59		28		76
Minimum royalty payments (5)		790		78		245		132		335
Purchase obligations (6)		1,603		381		795		354		73
Other (7)		589		143		250		29		167
	$	20,605	$	2,074	$	5,588	$	1,524	$	11,419

(1)	Debt includes principal of $6,166 and estimated interest payments of $3,715 on Senior Notes, assuming no early extinguishment.

(2)

Mining operations are subject to extensive environmental regulations in the jurisdictions in which they operate. Pursuant to environmental regulations, we are required to close our operations and reclaim and remediate the lands that operations have disturbed. The estimated undiscounted cash outflows of these Reclamation and remediation liabilities are reflected here. For more information regarding reclamation and remediation liabilities, see Note 7 to the Consolidated Financial Statements.

(3)	Contractual obligations for Employee-related benefits include severance, workers’ participation, pension and other benefit plans. Pension plan benefit payments beyond 2029 cannot be reasonably estimated given variable market conditions and actuarial assumptions and are not included.

(4)	We are unable to reasonably estimate the timing of our uncertain income tax liabilities and interest payments beyond 2020 due to uncertainties in the timing of the effective settlement of tax positions.

(5)	Minimum royalty payments are related to continuing operations and are presented net of recoverable amounts.

(6)	Purchase obligations are not recorded in the Consolidated Financial Statements. Purchase obligations represent contractual obligations for purchase of power, materials and supplies, consumables, inventories and capital projects.

(7)	Other includes service contracts and other obligations not recorded in our Consolidated Financial Statements, as well as the Holt royalty obligation accrued in Other current liabilities and Other non-current liabilities and the Norte Abierto and Galore Creek deferred payment obligations accrued in Other non-current liabilities.

Off-Balance Sheet Arrangements

We have off-balance sheet arrangements of $1,924 of outstanding surety bonds, bank letters of credit and bank guarantees (see Note 32 to the Consolidated Financial Statements). At December 31, 2019, $60 of the $3,000 corporate revolving credit facility was used to secure the issuance of letters of credit, primarily supporting reclamation obligations.

Environmental

Our mining and exploration activities are subject to various federal and state laws and regulations governing the protection of the environment. We have made, and expect to make in the future, expenditures to comply with such laws and regulations, but cannot predict the full amount of such future expenditures. We perform a comprehensive review of our reclamation and remediation liabilities

annually and review changes in facts and circumstances associated with these obligations at least quarterly. At December 31, 2019 and 2018, $3,334 and $2,316, respectively, were accrued for reclamation costs relating to currently or recently producing or development stage mineral properties, of which $125 and $65, respectively, were classified as current liabilities. Included in our environmental liabilities as at December 31, 2019 is $882 relating to the Newmont Goldcorp transaction that closed on April 18, 2019. The formation of NGM resulted in a net decrease of $49 to our reclamation liabilities. Refer to Notes 3 and 4 to the Consolidated Financial Statements for further information on the Newmont Goldcorp transaction and the formation of NGM, respectively. As Newmont reached a definitive agreement for the sale of the Red Lake and Kalgoorlie assets, the related reclamation obligations were classified as held for sale as of December 31, 2019. Refer to Note 5 of our Consolidated Financial Statements for further information.

In addition, we are involved in several matters concerning environmental obligations associated with former, primarily historic, mining activities. Based upon our best estimate of our liability for these matters, $299 and $279 were accrued for such obligations at December 31, 2019 and 2018, respectively, of which $44 and $49, respectively, were classified as current liabilities. We spent $31, $39 and $44 during 2019, 2018, and 2017, respectively, for environmental obligations related to the former mining activities. Expenditures during 2019 primarily related to increased water management costs at Yanacocha, updated project costs estimates at Dawn, Mule Canyon and Northumberland sites, increased water management costs at the Con mine and higher reclamation and remediation costs from the Newmont Goldcorp transaction. Expenditures during 2018 relate primarily to project spending at the Midnite mine site and Dawn mill site in Washington State.

During the year ended 2019, 2018, and 2017, capital expenditures were approximately $65, $81, and $78, respectively, to comply with environmental regulations.

For more information on the Company’s reclamation and remediation liabilities, see Notes 7, 25 and 32 to the Consolidated Financial Statements.

Forward-Looking Statements

The foregoing discussion and analysis, as well as certain information contained elsewhere in this Annual Report, contain “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, and are intended to be covered by the safe harbor created thereby. For a more detailed discussion of risks and other factors that might impact forward-looking statements and other important information about forward-looking statements, see the discussion in Forward-Looking Statements in Item 1, Business and Item 1A, Risk Factors.

Non-GAAP Financial Measures

Non-GAAP financial measures are intended to provide additional information only and do not have any standard meaning prescribed by U.S. generally accepted accounting principles (“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. For additional information regarding our discontinued operations, see Note 13 to the Consolidated Financial Statements.

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 Newmont stockholders is reconciled to EBITDA and Adjusted EBITDA as follows:



	Years Ended December 31,
	2019		2018		2017
Net income (loss) attributable to Newmont stockholders	$	2,805	$	341	$	(114)
Net income (loss) attributable to noncontrolling interests		79		39		5
Net loss (income) from discontinued operations (1)		72		(61)		38
Equity loss (income) of affiliates		(95)		33		16
Income and mining tax expense (benefit)		832		386		1,127
Depreciation and amortization		1,960		1,215		1,261
Interest expense, net		301		207		241
EBITDA	$	5,954	$	2,160	$	2,574
Adjustments:
Gain on formation of Nevada Gold Mines (2)	$	(2,390)	$	—	$	—
Goldcorp transaction and integration costs (3)		217		—		—
Change in fair value of investments (4)		(166)		50		—
Reclamation and remediation charges (5)		120		21		69
Loss (gain) on asset and investment sales (6)		(30)		(100)		(23)
Nevada JV transaction and integration costs (7)		30		—		—
Restructuring and other (8)		(8)		20		14
Impairment of long-lived assets (9)		5		369		14
Impairment of investments (10)		2		42		—
Emigrant leach pad write-down (11)		—		22		—
Acquisition cost adjustments (12)		—		—		2
Adjusted EBITDA	$	3,734	$	2,584	$	2,650

(1)	For additional information regarding our discontinued operations, see Note 13 to our Consolidated Financial Statements.

(2)	Gain on formation of Nevada Gold Mines represents the difference between the fair value of our 38.5% interest in NGM and the carrying value of the Nevada mining operations contributed. For additional information regarding NGM, see Note 4 to our Consolidated Financial Statements.

(3)	Goldcorp transaction and integration costs, included in Other expense, net, primarily represents costs incurred related to the Newmont Goldcorp transaction during 2019.

(4)	Change in fair value of investments, included in Other income, net, primarily represents unrealized holding gains and losses on marketable equity securities and our investment instruments in Continental Gold Inc. For additional information regarding our investment in Continental, see Note 20 to our Consolidated Financial Statements.

(5)

Reclamation and remediation charges, included in Reclamation and remediation, represent revisions to reclamation and remediation plans and cost estimates at the Company’s former historic mining operations. The 2019 charges include updated water management costs for operations no longer in production at the Yanacocha mine, updated project cost estimates at the Mule Canyon and Northumberland mine sites and a review of the project cost estimates at the Midnite and Dawn remediation site, as well as increased water management costs at the Con mine. The 2018 charges include adjustments at the Idarado, Lone Tree and Rain remediation and closure sites. The 2017 charges include adjustments at the

	Rain, Midnite, Resurrection and San Luis remediation and closure sites in December 2017. For additional information regarding reclamation and remediation charges, see Note 7 to our Consolidated Financial Statements.

(6)

Loss (gain) on asset and investment sales, included in Other income, net, primarily represents a gain on the sale of exploration land in 2019, a gain from the exchange of certain royalty interests for cash consideration and an equity ownership and warrants in Maverix in 2018 and a gain from the exchange of our interest in the Fort á la Corne joint venture for equity ownership in Star Diamond Corporation (“Star Diamond”), formerly known as Shore Gold Inc. (“Shore Gold”) in 2017.

(7)	Nevada JV transaction and integration costs, included in Other expense, net, primarily represents costs incurred related to the Nevada JV Agreement, including hostile defense fees, during 2019.

(8)

Restructuring and other, net included in Other expense, net, primarily represents certain costs, unrelated to the Newmont Goldcorp transaction or the formation of NGM, associated with severance and employee-related benefits, and legal and other settlements of $12, $20, $14. Restructuring and other, net included in Other income, net, primarily represents net pension curtailment gains of ($20), $-, $-.

(9)	Impairment of long-lived assets, included in Impairment of long-lived assets, represents non-cash write-downs of long-lived assets. Impairments include $366 related to long-lived assets in Nevada in 2018. See Note 8 to our Consolidated Financial Statements for further information.

(10)	Impairment of investments, included in Other income, net, represents other-than-temporary impairments of other investments.

(11)	The Emigrant leach pad write-down, included in Costs applicable to sales, represents a write-down to reduce the carrying value of the leach pad to net realizable value at Emigrant due to a change in mine plan resulting in a significant decrease in mine life in 2018.

(12)	Acquisition cost adjustments, included in Other expense, net, represent net adjustments to the contingent consideration and related liabilities associated with the acquisition of the final 33.33% interest in Boddington in June 2009.

Additionally, the Company uses Pueblo Viejo EBITDA as a non-GAAP measure to evaluate the operating performance of its investment in the Pueblo Viejo mine. Pueblo Viejo EBITDA does not represent, and should not be considered an alternative to, Equity income (loss) of affiliates, as defined by GAAP, and does not necessarily indicate whether cash distributions from Pueblo Viejo will match Pueblo Viejo EBITDA or earnings from affiliates. Although the Company has the ability to exert significant influence, it does not have direct control over the operations or resulting revenues and expenses, nor does it proportionately consolidate its investment in Pueblo Viejo. The Company believes that Pueblo Viejo EBITDA provides useful information to investors and others in understanding and evaluating the operating results of its investment in Pueblo Viejo, in the same manner as management and the Board of Directors. Equity income (loss) of affiliates is reconciled to Pueblo Viejo EBITDA as follows:


	Years Ended December 31,
	2019		2018		2017
Equity income (loss) of affiliates (1)	$	95	$	(33)	$	(16)
Equity income (loss) of affiliates, excluding Pueblo Viejo (1)		(29)		(33)		(16)
Equity income (loss) of affiliates, Pueblo Viejo (1)		124		—		—
Reconciliation of Pueblo Viejo on attributable basis:
Income and mining tax benefit (expense)		69		—		—
Depreciation and amortization		52		—		—
Interest expense, net		—		—		—
Pueblo Viejo EBITDA	$	245	$	—	$	—

(1)	See Note 12 to the Consolidated Financial Statements.

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 regional 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 Newmont stockholders is reconciled to Adjusted net income (loss) as follows:


	Year Ended December 31, 2019
			per share data (1)
			basic		diluted
Net income (loss) attributable to Newmont stockholders	$	2,805	$	3.82	$	3.81
Net loss (income) attributable to Newmont stockholders from discontinued operations (2)		72		0.10		0.10
Net income (loss) attributable to Newmont stockholders from continuing operations		2,877		3.92		3.91
Gain on formation of Nevada Gold Mines (3)		(2,390)		(3.25)		(3.24)
Goldcorp transaction and integration costs (4)		217		0.29		0.29
Change in fair value of investments (5)		(166)		(0.23)		(0.23)
Reclamation and remediation charges, net (6)		99		0.13		0.13
Nevada JV transaction and integration costs (7)		30		0.04		0.04
Loss (gain) on asset and investment sales, net (8)		(28)		(0.04)		(0.04)
Restructuring and other, net (9)		(9)		(0.01)		(0.01)
Impairment of long-lived assets, net (10)		4		—		—
Impairment of investments (11)		2		—		—
Tax effect of adjustments (12)		418		0.57		0.57
Valuation allowance and other tax adjustments, net (13)		(84)		(0.10)		(0.10)
Adjusted net income (loss)	$	970	$	1.32	$	1.32

Weighted average common shares (millions): (14)				735		737

(1)	Per share measures may not recalculate due to rounding.

(2)	For additional information regarding our discontinued operations, see Note 13 to our Consolidated Financial Statements.

(3)	Gain on formation of Nevada Gold Mines represents the difference between the fair value of our 38.5% interest in NGM and the carrying value of the Nevada mining operations contributed. For additional information regarding NGM, see Note 4 to our Consolidated Financial Statements.

(4)	Goldcorp transaction and integration costs, included in Other expense, net, represents costs incurred related to the Newmont Goldcorp transaction during 2019.

(5)	Change in fair value of investments, included in Other income, net, primarily represents unrealized holding gains and losses on marketable equity securities and our investment instruments in Continental Gold Inc. For additional information regarding our investment in Continental, see Note 20 to our Consolidated Financial Statements.

(6)

Reclamation and remediation charges, net, included in Reclamation and remediation, represent revisions to remediation plans at the Company’s former historic mining operations, including adjustments related to updated water management costs for operations no longer in production at the Yanacocha mine, updated project cost estimates at the Mule Canyon and Northumberland mine sites and a review of the project cost estimates at the Midnite and Dawn remediation site, as well as increased water management costs at the Con mine. Amount is presented net of income (loss) attributable to noncontrolling interests of $(21). For additional information regarding reclamation and remediation charges, see Note 7 to our Consolidated Financial Statements.

(7)	Nevada JV transaction and integration costs, included in Other expense, net, primarily represents costs incurred related to the Nevada JV Agreement, including hostile defense fees, during 2019.

(8)	Loss (gain) on asset and investment sales, net, included in Other income, net, primarily represents a gain on the sale of exploration land. Amount is presented net of income (loss) attributable to noncontrolling interests of $2.

(9)

Restructuring and other, net, included in Other expense, net, primarily represents certain costs, unrelated to the Newmont Goldcorp transaction or the formation of NGM, associated with severance and employee-related benefits, and legal and other settlements of $12. Restructuring and other, net included in Other income, net, primarily represents net pension curtailment gains of ($20). Amount is presented net of income (loss) attributable to noncontrolling interests of $(1).

(10)	Impairment of long-lived assets, net, included in Impairment of long-lived assets, represents non-cash write-downs of long-lived assets. Amount is presented net of income (loss) attributable to noncontrolling interests of $(1).

(11)	Impairment of investments, included in Other income, net, represents other-than-temporary impairments of other investments.

(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 regional 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 is due to a net increase or (decrease) to net operating losses, tax credit carryovers and other deferred tax assets subject to valuation allowance of $(262), the effects of changes in foreign exchange rates on deferred tax assets and liabilities of $(95), the effects related to the amendment of the 2014 U.S. federal income tax return and related carrybacks of $150, additions to the reserve for uncertain tax positions of $70, the expiration of U.S. capital loss carryovers of $34, and other tax adjustments of $28. Amounts is presented net of income (loss) attributable to noncontrolling interests of $(9).

(14)	Adjusted net income (loss) per diluted share is calculated using diluted common shares, which are calculated in accordance with U.S. GAAP.


	Year Ended December 31, 2018
			per share data (1)
			basic		diluted
Net income (loss) attributable to Newmont stockholders	$	341	$	0.64	$	0.64
Net loss (income) attributable to Newmont stockholders from discontinued operations (2)		(61)		(0.11)		(0.11)
Net income (loss) attributable to Newmont stockholders from continuing operations		280		0.53		0.53
Impairment of long-lived assets (3)		369		0.69		0.69
Loss (gain) on asset and investment sales (4)		(100)		(0.19)		(0.19)
Change in fair value of investments (5)		50		0.09		0.09
Impairment of investments (6)		42		0.08		0.07
Emigrant leach pad write-down (7)		29		0.05		0.05
Reclamation and remediation charges (8)		21		0.04		0.04
Restructuring and other, net (9)		16		0.03		0.03
Tax effect of adjustments (10)		(99)		(0.18)		(0.18)
Re-measurement due to the Tax Cuts and Jobs Act (11)		(14)		(0.03)		(0.03)
Tax restructuring related to the Tax Cuts and Jobs Act (12)		(34)		(0.06)		(0.06)
Valuation allowance and other tax adjustments, net (13)		158		0.30		0.30
Adjusted net income (loss)	$	718	$	1.35	$	1.34

Weighted average common shares (millions): (14)				533		535

(1)	Per share measures may not recalculate due to rounding.

(2)	For additional information regarding our discontinued operations, see Note 13 to our Consolidated Financial Statements.

(3)	Impairment of long-lived assets, included in Impairment of long-lived assets, represents non-cash write-downs of long-lived assets. The amount includes $366 related to long-lived assets in Nevada in 2018. See Note 8 to our Consolidated Financial Statements for further information.

(4)	Loss (gain) on asset and investment sales, included in Other income, net, primarily represents a gain from the exchange of certain royalty interests for cash consideration and an equity ownership and warrants in Maverix.

(5)	Change in fair value of investments, included in Other income, net, primarily represents unrealized holding gains and losses on marketable equity securities and our investment instruments in Continental Gold Inc.

(6)	Impairment of investments, included in Other income, net, represents other-than-temporary impairments of other investments.

(7)	The Emigrant leach pad write-down, included in Costs applicable to sales and Depreciation and amortization, represents a write-down to reduce the carrying value of the leach pad to net realizable value at Emigrant due to a change in mine plan resulting in a significant decrease in mine life.

(8)	Reclamation and remediation charges, included in Reclamation and remediation, represent revisions to reclamation and remediation plans and cost estimates at the Company’s former mining operations, including adjustments at the Idarado, Lone Tree and Rain remediation and closure sites.

(9)	Restructuring and other, net, included in Other expense, net, primarily represents certain costs associated with severance, legal and other settlements. Amount is presented net of income (loss) attributable to noncontrolling interests of $(4).

(10)	The tax effect of adjustments, included in Income and mining tax benefit (expense), represents the tax effect of adjustments in footnotes (3) through (9), as described above, and are calculated using the applicable regional tax rate.

(11)	Re-measurement due to the Tax Cuts and Jobs Act, included in Income and mining tax benefit (expense), represents the re-measurement of our U.S. deferred tax assets and liabilities from 35% to the reduced tax rate of 21%. Amount reflects the final adjustments to the provisional re-measurement expense.

(12)	Tax restructuring related to the Tax Cuts and Jobs Act, included in Income and mining tax benefit (expense), represents changes resulting from restructuring our holding of non-U.S. operations for U.S. federal income tax purposes. Amount reflects the final adjustments to the provisional restructuring charge.

(13)

Valuation allowance and other tax adjustments, net, included in Income and mining tax benefit (expense), predominantly represent adjustments to remove the impact of our valuation allowances for items such as foreign tax credits, alternative minimum tax credits, capital losses and disallowed foreign losses. We believe that these valuation allowances cause significant fluctuations in our financial results that are not indicative of our underlying financial performance. The adjustments during 2018 are due to an increase to the valuation allowance on U.S. net operating losses, credit carryovers, and other U.S. deferred tax assets of $191, other tax adjustments of $(3), and a decrease to the valuation allowance on U.S. capital losses of $(15). Amount is presented net of income (loss) attributable to noncontrolling interests of $(15).

(14)	Adjusted net income (loss) per diluted share is calculated using diluted common shares, which are calculated in accordance with U.S. GAAP.


	Year Ended December 31, 2017
			per share data (1)
			basic		diluted
Net income (loss) attributable to Newmont stockholders	$	(114)	$	(0.21)	$	(0.21)
Net loss (income) attributable to Newmont stockholders from discontinued operations (2)		38		0.07		0.07
Net income (loss) attributable to Newmont stockholders from continuing operations		(76)		(0.14)		(0.14)
Reclamation and remediation charges (3)		69		0.13		0.13
Loss (gain) on asset and investment sales (4)		(23)		(0.04)		(0.04)
Impairment of long-lived assets, net (5)		13		0.01		0.01
Restructuring and other, net (6)		9		0.01		0.01
Acquisition cost adjustments (7)		2		—		—
Tax effect of adjustments (8)		(24)		(0.04)		(0.04)
Adjustment to equity method investment (9)		7		0.01		0.01
Re-measurement due to the Tax Cuts and Jobs Act (10)		312		0.59		0.59
Tax restructuring related to the Tax Cuts and Jobs Act (11)		394		0.74		0.74
Valuation allowance and other tax adjustments, net (12)		91		0.18		0.18
Adjusted net income (loss)	$	774	$	1.45	$	1.45

Weighted average common shares (millions): (13)				533		535

(1)	Per share measures may not recalculate due to rounding.

(2)	For additional information regarding our discontinued operations, see Note 13 to our Consolidated Financial Statements.

(3)	Reclamation and remediation charges, included in Reclamation and remediation, represent revisions to reclamation and remediation plans and cost estimates at the Company’s former historic mining operations, including adjustments at the Rain, Midnite, Resurrection and San Luis remediation and closure sites.

(4)	Loss (gain) on asset and investment sales, included in Other income, net, primarily represents a gain from the exchange of our interest in the Fort á la Corne joint venture for equity ownership in Star Diamond, formerly known as Shore Gold.

(5)	Impairment of long-lived assets, net, included in Impairment of long-lived assets, represents non-cash write-downs of long-lived assets. Amount is presented net of income (loss) attributable to noncontrolling interests of $(1).

(6)	Restructuring and other, net, included in Other expense, net, primarily represents certain costs associated with severance, legal and other settlements. Amount is presented net of income (loss) attributable to noncontrolling interests of $(5).

(7)	Acquisition cost adjustments, included in Other expense, net, represent net adjustments to the contingent consideration and related liabilities associated with the acquisition of the final 33.33% interest in Boddington in 2009.

(8)	The tax effect of adjustments, included in Income and mining tax benefit (expense), represents the tax effect of adjustments in footnotes (3) through (7), as described above, and are calculated using the applicable regional tax rate.

(9)	Adjustment to equity method investment, included in Equity income (loss) of affiliates and presented net of tax expense (benefit) of $(3), represents non-cash write-downs of long-lived assets recorded at Minera La Zanja S.R.L. (“La Zanja”).

(10)

Re-measurement due to the Tax Cuts and Jobs Act, included in Income and mining tax benefit (expense), represents the re-measurement of our U.S. deferred tax assets and liabilities from 35% to the reduced tax rate of 21%. The amount includes the provisional adjustments of $352 and $8 for changes in executive compensation deductions, partially offset by the release of a valuation allowance on alternative minimum tax credits of $48.

(11)	Tax restructuring related to the Tax Cuts and Jobs Act, included in Income and mining tax benefit (expense), represents changes resulting from restructuring our holding of non-U.S. operations for U.S. federal income tax purposes.

(12)

Valuation allowance and other tax adjustments, net, included in Income and mining tax benefit (expense), predominantly represent adjustments to remove the impact of our valuation allowances for items such as foreign tax credits, alternative minimum tax credits, capital losses and disallowed foreign losses. We believe that these valuation allowances cause significant fluctuations in our financial results that are not indicative of our underlying financial performance. The adjustments during 2017 are due to an increase to the valuation allowance on credit carryovers of $94, a decrease to the valuation allowance carried on the deferred tax asset for investments of $10 and other tax adjustments of $7.

(13)	Adjusted net income (loss) per diluted share is calculated using diluted common shares, which are calculated in accordance with U.S. GAAP.

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.


	Years Ended December 31,
	2019		2018		2017
Net cash provided by (used in) operating activities	$	2,866	$	1,827	$	2,124
Less: Net cash used in (provided by) operating activities of discontinued operations		10		10		15
Net cash provided by (used in) operating activities of continuing operations		2,876		1,837		2,139
Less: Additions to property, plant and mine development		(1,463)		(1,032)		(866)
Free Cash Flow	$	1,413	$	805	$	1,273

Net cash provided by (used in) investing activities (1)	$	(1,226)	$	(1,177)	$	(946)
Net cash provided by (used in) financing activities	$	(2,777)	$	(455)	$	(668)

(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.

Costs applicable to sales per ounce/pound

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. 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.


	Gold (1)						GEO (2)
	Years Ended December 31,						Years Ended December 31,
	2019		2018		2017		2019		2018		2017
Costs applicable to sales (3)	$	4,663	$	3,906	$	3,899	$	532	$	187	$	163
Gold/GEO sold (thousand ounces) (4)		6,465		5,516		5,632		621		238		208
Costs applicable to sales per ounce (5)	$	721	$	708	$	692	$	858	$	782	$	784

(1)	Includes by-product credits of $91, $50 and $51 in 2019, 2018 and 2017, respectively.

(2)	Includes by-product credits of $3, $3 and $4 in 2019, 2018 and 2017, respectively.

(3)	Excludes Depreciation and amortization and Reclamation and remediation.

(4)	Gold equivalent ounces are calculated as pounds or ounces sold multiplied by the ratio of the other metals price to the gold price using Gold ($1,200/oz.), Copper ($2.75/lb.), Silver ($15/oz.), Lead ($0.90/lb.) and Zinc ($1.05/lb.) pricing for 2019, Gold ($1,250/oz.) and Copper ($2.70/lb.) pricing for 2018 and Gold ($1,200/oz.) and Copper ($2.25/lb.) pricing for 2017.

(5)	Per ounce measures may not recalculate due to rounding.

All-In Sustaining Costs

Newmont has developed 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.

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, we believe that all-in sustaining costs is a non-GAAP measure that provides additional information to management, investors and analysts that aid 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.

All-in sustaining cost (“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 International Financial Reporting Standards (“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 (e.g. 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 Costs applicable to sales (“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 at our Peñasquito, Boddington, and Phoenix mines. The other metals CAS at those mine sites is disclosed in Note 5 to the Consolidated Financial Statements. The allocation of CAS between gold and other metals at the Peñasquito, Boddington, and Phoenix mines 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 Asset Retirement Cost (“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 at the Peñasquito, Boddington, and Phoenix mines.

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 at the Peñasquito, Boddington, and Phoenix mines.

General and administrative. Includes costs related to administrative tasks not directly related to current production, but rather related to support our corporate structure and fulfill 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.

Other expense, net. We exclude certain exceptional or unusual expenses from Other expense, net, 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 Newmont stockholders as disclosed in the Company’s non-GAAP financial measure Adjusted net income (loss). 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 at the Peñasquito, Boddington, and Phoenix mines.

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 our 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 at the Peñasquito, Boddington, and Phoenix mines.

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. Sustaining finance lease payments are included beginning in 2019 in connection with the adoption of ASC 842. Refer to Note 2 in the Consolidated Financial Statements for further details. We determined development (e.g. 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. 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 at the Peñasquito, Boddington, and Phoenix mines.


					Advanced
					Projects,
					Research and						Treatment		Sustaining					All-In
	Costs				Development		General		Other		and		Capital and		All-In			Sustaining
Years Ended	Applicable		Reclamation		and		and		Expense,		Refining		Finance Lease		Sustaining		Ounces (000)	Costs per
December 31, 2019	to Sales (1)(2)(3)		Costs (4)		Exploration(5)		Administrative		Net (6)		Costs		Payments (7)(8)		Costs		Sold	oz. (9)
Gold
CC&V	$	290	$	4	$	6	$	1	$	3	$	—	$	38	$	342	319	$	1,071
Red Lake		136		2		7		—		—		—		29		174	112		1,570
Musselwhite		13		2		6		—		—		—		25		46	6		8,174
Porcupine		185		2		4		—		—		—		30		221	235		935
Éléonore		214		1		4		—		—		1		47		267	264		1,013
Peñasquito		116		2		—		—		—		2		39		159	144		1,100
Other North America		—		—		1		63		1		—		8		73	—		—
North America		954		13		28		64		4		3		216		1,282	1,080		1,187

Yanacocha		400		54		10		2		8		—		33		507	529		959
Merian		297		4		4		2		—		—		56		363	526		689
Cerro Negro		210		2		13		1		1		—		35		262	349		753
Other South America		—		—		—		11		—		—		—		11	—		—
South America		907		60		27		16		9		—		124		1,143	1,404		814

Boddington		575		11		3		—		—		14		66		669	710		942
Tanami		266		2		9		—		—		—		82		359	500		717
Kalgoorlie		216		4		3		—		—		—		31		254	228		1,114
Other Australia		—		—		4		10		1		—		9		24	—		—
Australia		1,057		17		19		10		1		14		188		1,306	1,438		908

Ahafo		393		5		20		—		1		—		98		517	630		820
Akyem		235		32		3		—		4		—		28		302	421		718
Other Africa		—		—		2		9		1		—		—		12	—		—
Africa		628		37		25		9		6		—		126		831	1,051		791

Nevada Gold Mines		494		6		12		5		5		5		97		624	693		901
Carlin		358		3		9		3		1		—		64		438	408		1,076
Phoenix		116		3		—		1		—		7		10		137	118		1,149
Twin Creeks		113		1		3		1		—		—		23		141	177		800
Long Canyon		36		1		—		1		—		—		7		45	96		466
Other Nevada		—		—		6		—		—		—		4		10	—		—
Nevada		1,117		14		30		11		6		12		205		1,395	1,492		935

Corporate and Other		—		—		62		203		3		—		21		289	—		—
Total Gold	$	4,663	$	141	$	191	$	313	$	29	$	29	$	880	$	6,246	6,465	$	966

Gold equivalent ounces - other metals (10)
Peñasquito	$	387	$	7	$	3	$	—	$	7	$	66	$	116	$	586	438	$	1,339
Boddington		117		2		—		—		—		8		12		139	145		954
Phoenix		28		2		—		—		—		1		3		34	38		894
Total Gold Equivalent Ounces	$	532	$	11	$	3	$	—	$	7	$	75	$	131	$	759	621	$	1,222

Consolidated	$	5,195	$	152	$	194	$	313	$	36	$	104	$	1,011	$	7,005

(1)	Excludes Depreciation and amortization and Reclamation and remediation.

(2)	Includes by-product credits of $94 and excludes co-product revenues of $691.

(3)	Includes stockpile and leach pad inventory adjustments of $12 at CC&V, $16 at Yanacocha, $19 at Boddington, $20 at Akyem, $10 at NGM, $33 at Carlin and $2 at Twin Creeks.

(4)	Reclamation costs include operating accretion and amortization of asset retirement costs of $85 and $67, respectively, and exclude non-operating accretion and reclamation and remediation adjustments of $53 and $142, respectively.

(5)

Advanced projects, research and development and Exploration excludes development expenditures of $7 at CC&V, $1 at Musselwhite, $10 at Porcupine, $4 at Éléonore, $3 at Peñasquito, $4 at Other North America, $14 at Yanacocha, $7 at Merian, $9 at Cerro Negro, $40 at Other South America, $3 at Tanami, $3 at Kalgoorlie, $20 at Other Australia, $13 at Ahafo, $11 at Akyem, $4 at Other Africa, $10 at NGM, $6 at Carlin, $1 at Phoenix, $2 at Twin Creeks, $12 at Long Canyon, $2 at Other Nevada and $35 at Corporate and Other, totaling $221 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 Newmont Goldcorp transaction and integration costs of $217, Nevada JV transaction implementation costs of $30, and restructuring and other costs of $12.

(7)

Includes sustaining capital expenditures of $295 for North America, $124 for South America, $185 for Australia, $123 for Africa, $207 for Nevada and $21 for Corporate and Other, totaling $955 and excludes development capital expenditures, capitalized interest and the increase in accrued capital totaling $508. The following are major development projects: Borden, Musselwhite Materials Handling, Éléonore Lower Mine Material Handling System, Quecher Main, Yanacocha Sulfides, Tanami Expansion 2, Ahafo North, Subika Underground, Ahafo Mill Expansion, Goldrush Complex and Turquoise Ridge 3rd shaft.

(8)	Includes finance lease payments for sustaining projects of $56 and excludes finance lease payments for development projects of $31.

(9)	Per ounce measures may not recalculate due to rounding.

(10)	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 ($2.75/lb.), Silver ($15/oz.), Lead ($0.90/lb.) and Zinc ($1.05/lb.) pricing.


					Advanced
					Projects,
					Research and						Treatment							All-In
	Costs				Development		General		Other		and				All-In			Sustaining
Years Ended	Applicable		Reclamation		and		and		Expense,		Refining		Sustaining		Sustaining		Ounces (000)	Costs per
December 31, 2018	to Sales (1)(2)(3)		Costs (4)		Exploration(5)		Administrative		Net (6)		Costs		Capital (7)		Costs		Sold	oz. (8)
Gold
CC&V	$	260	$	3	$	5	$	2	$	1	$	—	$	29	$	300	357	$	840
Other North America		—		—		—		—		—		—		—		—	—		—
North America		260		3		5		2		1		—		29		300	357		840

Yanacocha		425		47		5		2		—		—		26		505	522		967
Merian		275		2		4		1		1		—		54		337	538		627
Other South America		—		—		—		9		1		—		—		10	—		—
South America		700		49		9		12		2		—		80		852	1,060		804

Boddington		571		9		—		—		—		21		46		647	726		891
Tanami		297		2		17		—		1		—		68		385	505		763
Kalgoorlie		232		4		4		—		1		—		21		262	322		813
Other Australia		—		2		5		10		(5)		—		5		17	—		—
Australia		1,100		17		26		10		(3)		21		140		1,311	1,553		845

Ahafo		323		3		6		1		4		—		40		377	436		864
Akyem		227		22		1		1		2		—		40		293	415		705
Other Africa		—		—		2		6		—		—		—		8	—		—
Africa		550		25		9		8		6		—		80		678	851		794

Carlin		760		10		24		7		—		—		152		953	929		1,027
Phoenix		202		6		4		2		1		9		23		247	237		1,043
Twin Creeks		240		2		9		2		1		—		40		294	359		820
Long Canyon		72		2		—		1		—		—		11		86	170		505
Other Nevada		—		—		7		1		—		—		15		23	—		—
Nevada		1,274		20		44		13		2		9		241		1,603	1,695		928

Corporate and Other		—		—		63		199		1		—		12		275	—		—
Total Gold	$	3,884	$	114	$	156	$	244	$	9	$	30	$	582	$	5,019	5,516	$	909

Gold equivalent ounces - other metals (9)
Boddington	$	132	$	2	$	—	$	—	$	—	$	12	$	10	$	156	173	$	898
Phoenix		55		2		1		—		—		1		8		67	65		1,035
Total Gold Equivalent Ounces	$	187	$	4	$	1	$	—	$	—	$	13	$	18	$	223	238	$	935

Consolidated	$	4,071	$	118	$	157	$	244	$	9	$	43	$	600	$	5,242

(1)	Excludes Depreciation and amortization and Reclamation and remediation.

(2)	Includes by-product credits of $53 and excludes co-product revenues of $303.

(3)	Includes stockpile and leach pad inventory adjustments of $5 at CC&V, $39 at Yanacocha, $33 at Ahafo, $34 at Akyem, $92 at Carlin and $32 at Twin Creeks. Total stockpile and leach pad inventory adjustments at Carlin of $114 were adjusted above by $22 related to the write-down at Emigrant due to a change in mine plan, resulting in a significant decrease in mine life in the third quarter of 2018.

(4)	Reclamation costs include operating accretion and amortization of asset retirement costs of $60 and $58, respectively, and exclude non-operating accretion and reclamation and remediation adjustments of $44 and $59, respectively.

(5)

Advanced projects, research and development and Exploration excludes development expenditures of $5 at CC&V, $49 at Yanacocha, $9 at Merian, $34 at Other South America, $6 at Kalgoorlie, $7 at Other Australia, $11 at Ahafo, $12 at Akyem, $3 at Other Africa, $10 at Carlin, $3 at Twin Creeks, $23 at Long Canyon, $16 at Other Nevada and $5 at Corporate and Other, totaling $193 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 restructuring and other costs of $20.

(7)	Excludes development capital expenditures, capitalized interest and changes in accrued capital, totaling $432. The following are major development projects during the period: Quecher Main, the Merian crusher, Tanami Expansion 2, Ahafo North, Subika Underground, Ahafo Mill Expansion and Twin Creeks Underground.

(8)	Per ounce measures may not recalculate due to rounding.

(9)	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 ($1,250/oz.) and Copper ($2.70/lb.) pricing.


					Advanced
					Projects,
					Research and						Treatment							All-In
	Costs				Development		General		Other		and				All-In			Sustaining
Year Ended	Applicable		Reclamation		and		and		Expense,		Refining		Sustaining		Sustaining		Ounces (000)	Costs per
December 31, 2017	to Sales (1)(2)(3)		Costs (4)		Exploration(5)		Administrative		Net (6)		Costs		Capital (7)		Costs		Sold	oz. (8)
Gold
CC&V	$	290	$	3	$	9	$	1	$	—	$	1	$	33	$	337	466	$	725
Other North America		—		—		—		—		—		—		—		—	—		—
North America		290		3		9		1		—		1		33		337	466		725

Yanacocha		504		64		4		4		4		—		38		618	537		1,150
Merian (9)		238		2		—		—		—		—		37		277	509		544
Other South America		—		—		3		12		—		—		—		15	—		—
South America		742		66		7		16		4		—		75		910	1,046		870

Boddington		562		9		2		—		—		21		66		660	787		838
Tanami		251		2		3		1		—		—		63		320	408		786
Kalgoorlie		234		3		3		—		—		1		19		260	363		717
Other Australia		—		—		2		10		(1)		—		4		15	—		—
Australia		1,047		14		10		11		(1)		22		152		1,255	1,558		806

Ahafo		268		6		6		1		3		—		43		327	350		933
Akyem		272		13		2		—		1		—		26		314	474		663
Other Africa		—		—		—		6		—		—		—		6	—		—
Africa		540		19		8		7		4		—		69		647	824		785

Carlin		810		6		17		3		—		—		174		1,010	976		1,035
Phoenix		182		5		4		1		1		9		17		219	212		1,035
Twin Creeks		229		3		6		2		1		—		38		279	376		741
Long Canyon		59		2		—		—		—		—		3		64	174		364
Other Nevada		—		—		14		—		1		—		9		24	—		—
Nevada		1,280		16		41		6		3		9		241		1,596	1,738		918

Corporate and Other		—		—		52		195		6		—		10		263	—		—
Total Gold	$	3,899	$	118	$	127	$	236	$	16	$	32	$	580	$	5,008	5,632	$	890

Gold equivalent ounces - other metals (9)
Boddington	$	108	$	1	$	—	$	—	$	—	$	12	$	13	$	134	148	$	900
Phoenix		55		2		1		1		—		1		7		67	60		1,112
Total Gold Equivalent Ounces	$	163	$	3	$	1	$	1	$	—	$	13	$	20	$	201	208	$	961

Consolidated	$	4,062	$	121	$	128	$	237	$	16	$	45	$	600	$	5,209

(1)	Excludes Depreciation and amortization and Reclamation and remediation.

(2)	Includes by-product credits of $55 and excludes co-product revenues of $315.

(3)	Includes stockpile and leach pad inventory adjustments of $53 at Yanacocha, $22 at Ahafo, $28 at Akyem $65 at Carlin and $30 at Twin Creeks.

(4)	Reclamation costs include operating accretion and amortization of asset retirement costs of $80 and $41, respectively, and exclude non-operating accretion and reclamation and remediation adjustments of $17 and $95, respectively.

(5)

Advanced projects, research and development and Exploration excludes development expenditures of $1 at CC&V, $37 at Yanacocha, $14 at Merian, $40 at Other South America, $18 at Tanami, $6 at Kalgoorlie, $6 at Other Australia, $18 at Ahafo, $8 at Akyem, $6 at Other Africa, $1 at Carlin, $3 at Twin Creeks, $23 at Long Canyon, $12 at Other Nevada and $1 at Corporate and Other, totaling $194 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 restructuring costs and other of $14 and acquisition cost adjustments of $2.

(7)	Excludes development capital expenditures, capitalized interest and changes in accrued capital, totaling $266. The following are major development projects during the period: the Merian crusher, Quecher Main, Tanami Expansions, Subika Underground, Ahafo Mill Expansion, Twin Creeks Underground and Long Canyon.

(8)	Per ounce measures may not recalculate due to rounding.

(9)	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.) and Copper ($2.25/lb.) pricing.

Accounting Developments

For a discussion of Recently Adopted Accounting Pronouncements and Recently Issued Accounting Pronouncements, see Note 2 to the Consolidated Financial Statements.

Critical Accounting Estimates

Listed below are the accounting policies that we believe are critical to our financial statements due to the degree of uncertainty regarding the estimates or assumptions involved and the magnitude of the asset, liability, revenue or expense being reported. Our discussion of financial condition and results of operations is based upon the information reported in our Consolidated Financial Statements. The preparation of these Consolidated Financial Statements in conformity with U.S. generally accepted accounting

principles (“GAAP”) requires us to make assumptions and estimates that affect the reported amounts of assets, liabilities, revenues, and expenses, as well as the disclosure of contingent assets and liabilities as of the date of our financial statements. We base our assumptions and estimates on historical experience and various other sources that we believe to be reasonable under the circumstances. Actual results may differ from the estimates we calculate due to changes in circumstances, global economics and politics, and general business conditions. A summary of our significant accounting policies is detailed in Note 2 to the Consolidated Financial Statements. We have outlined below those policies identified as being critical to the understanding of our business and results of operations and that require the application of significant management judgment.

Depreciation and amortization

Expenditures for new facilities or equipment and expenditures that extend the useful lives of existing facilities or equipment are capitalized and depreciated using the straight-line method at rates sufficient to amortize such costs over the estimated future lives of such facilities or equipment and their components. Facilities and equipment acquired as a part of a finance lease, build-to-suit or other financing arrangement are capitalized and recorded based on the contractual lease terms. The facilities and equipment are depreciated using the straight-line method at rates sufficient to depreciate such costs over the estimated productive lives of such facilities. These lives do not exceed the estimated mine life based on proven and probable reserves as the useful lives of these assets are considered to be limited to the life of the relevant mine.

Costs incurred to develop new properties are capitalized as incurred where it has been determined that the property can be economically developed based on the existence of proven and probable reserves. At our surface mines, these costs include costs to further delineate the ore body and remove overburden to initially expose the ore body. At our underground mines, these costs include the cost of building access ways, shaft sinking and access, lateral development, drift development, ramps and infrastructure development. All such costs are amortized using the units-of-production (“UOP”) method over the estimated life of the ore body based on estimated recoverable ounces to be produced from proven and probable reserves.

Major mine development costs incurred after the commencement of production, that are capitalized, are amortized using the UOP method based on estimated recoverable ounces to be produced from proven and probable reserves. To the extent that such costs benefit the entire ore body, they are amortized over the estimated recoverable ounces or pounds in proven and probable reserves of the entire ore body. Costs incurred to access specific ore blocks or areas that only provide benefit over the life of that block or area are amortized over the estimated recoverable ounces or pounds in proven and probable reserves of that specific ore block or area.

Capitalized asset retirement costs incurred are amortized according to how the related assets are being depreciated. Open pit and underground mining costs are amortized using the UOP method based on recoverable ounces by source. Other costs, including leaching facilities, tailing facilities, and mills and other infrastructure costs, are amortized using the straight-line method over the same estimated future lives of the associated assets.

The calculation of the UOP rate of amortization, and therefore the annual amortization charge to operations, could be materially impacted to the extent that actual production in the future is different from current forecasts of production based on proven and probable reserves. This would generally occur to the extent that there were significant changes in any of the factors or assumptions used in determining reserves. These changes could include: (i) an expansion of proven and probable reserves through exploration activities; (ii) differences between estimated and actual costs of production, due to differences in grade, metal recovery rates and foreign currency exchange rates; and (iii) differences between actual commodity prices and commodity price assumptions used in the estimation of reserves. If reserves decreased significantly, amortization charged to operations would increase; conversely, if reserves increased significantly, amortization charged to operations would decrease. Such changes in reserves could similarly impact the useful lives of assets depreciated on a straight-line basis, where those lives are limited to the life of the mine, which in turn is limited to the life of the proven and probable reserves.

The expected useful lives used in depreciation and amortization calculations are determined based on applicable facts and circumstances, as described above. Significant judgment is involved in the determination of useful lives, and no assurance can be given that actual useful lives will not differ significantly from the useful lives assumed for the purpose of depreciation and amortization calculations.

Carrying value of stockpiles

Stockpiles represent ore that has been extracted from the mine and is available for further processing. Mine sequencing may result in mining material at a faster rate than can be processed. We generally process the highest ore grade material first to maximize metal production; however, a blend of gold ore stockpiles may be processed to balance hardness and/or metallurgy in order to

maximize throughput and recovery. Processing of lower grade stockpiled ore may continue after mining operations are completed. Sulfide copper ores are subject to oxidation over time which can reduce expected future recoveries. Stockpiles are measured by estimating the number of tons added and removed from the stockpile, the number of contained ounces or pounds (based on assay data), and the estimated metallurgical recovery rates (based on the expected processing method). Stockpile ore tonnages are verified by periodic surveys. Costs are added to stockpiles based on current mining costs, including applicable overhead and depreciation and amortization relating to mining operations and removed at each stockpile’s average cost per recoverable unit as material is processed.

We record stockpiles at the lower of average cost or net realizable value, and carrying values are evaluated at least quarterly. Net realizable value represents the estimated future sales price based on short-term and long-term metals price assumptions that are applied to expected short-term (12 months or less) and long-term sales from stockpiles, less estimated costs to complete production and bring the product to sale. The primary factors that influence the need to record write-downs of stockpiles include declines in short-term or long-term metals prices, increases in costs for production inputs such as labor, fuel and energy, materials and supplies, as well as realized ore grades and recovery rates. The significant assumption in determining the stockpile net realizable value for each mine site at December 31, 2019 is a long-term gold price of $1,300 per ounce. Exclusive of NGM, a decrease of $100 per ounce in the long-term gold price assumption will not result in a material write-down to the carrying value of the stockpiles.

Other assumptions include future operating and capital costs, metal recoveries, production levels, commodity prices, proven and probable reserve quantities, engineering data and other factors unique to each operation based on the life of mine plans, as well as long-term commodity prices and applicable U.S. dollar long-term exchange rates. If short-term and long-term commodity prices decrease, estimated future processing costs increase, or other negative factors occur, it may be necessary to record a write-down of stockpiles. A high degree of judgment is involved in determining such assumptions and estimates and no assurance can be given that actual results will not differ significantly from those estimates and assumptions.

Refer to Note 22 of the Consolidated Financial Statements for further information regarding stockpiles.

Carrying value of ore on leach pads

Ore on leach pads represent ore that has been mined and placed on leach pads where a solution is applied to the surface of the heap to dissolve the gold or copper. Costs are added to ore on leach pads based on current mining costs, including applicable depreciation and amortization relating to mining operations. Costs are removed from ore on leach pads as ounces are recovered based on the average cost per estimated recoverable ounce of gold or silver or pound of copper on the leach pad.

Estimates of recoverable ore on the leach pads are calculated from the quantities of ore placed on the leach pads (measured tons added to the leach pads), the grade of ore placed on the leach pads (based on assay data) and a recovery percentage (based on ore type). In general, leach pads recover between 50% and 95% of the recoverable ounces in the first year of leaching, declining each year thereafter until the leaching process is complete.

Although the quantities of recoverable metal placed on the leach pads are reconciled by comparing the grades of ore placed on pads to the quantities of metal actually recovered (metallurgical balancing), the nature of the leaching process inherently limits the ability to precisely monitor inventory levels. As a result, the metallurgical balancing process is constantly monitored and estimates are refined based on actual results over time. Historically, our operating results have not been materially impacted by variations between the estimated and actual recoverable quantities of metal on our leach pads. Variations between actual and estimated quantities resulting from changes in assumptions and estimates that do not result in write-downs to net realizable value are accounted for on a prospective basis. The significant assumption in determining the net realizable value for each mine site at December 31, 2019 is a long-term gold price of $1,300 per ounce. Exclusive of NGM, a decrease of $100 per ounce in the long-term gold price assumption will not result in a material write-down to the carrying value of the leach pads.

Other assumptions include future operating and capital costs, metal recoveries, production levels, proven and probable reserve quantities, engineering data and other factors unique to each operation based on the life of mine plans, as well as a long-term metal prices. If short-term and long-term commodity prices decrease, estimated future processing costs increase, or other negative factors occur, it may be necessary to record a write-down of ore on leach pads to net realizable value.

Refer to Note 22 of the Consolidated Financial Statements for further information regarding ore on leach pads.

Carrying value of long-lived assets, including goodwill

We review and evaluate our long-lived assets for impairment when events or changes in circumstances indicate that the related carrying amounts may not be recoverable. An impairment loss is measured and recorded based on the estimated fair value of the long-lived assets being tested for impairment and their carrying amounts. Fair value is typically determined through the use of an income approach utilizing estimates of discounted pre-tax future cash flows or a market approach utilizing recent transaction activity for comparable properties. These approaches are considered Level 3 fair value measurements. Occasionally, such as when an asset is held for sale, market prices are used. We believe our estimates and models used to determine fair value are similar to what a market participant would use.

The estimated undiscounted cash flows used to assess recoverability of long-lived assets and to measure the fair value of our mining operations are derived from current business plans, which are developed using short-term price forecasts reflective of the current price environment and our projections for long-term average metal prices. In addition to short- and long-term metal price assumptions, other assumptions include estimates of commodity-based and other input costs; proven and probable mineral reserves estimates, including the timing and cost to develop and produce the reserves; value beyond proven and probable estimates; estimated future closure costs; and the use of appropriate discount rates.

The significant assumption in determining the future cash flows for each mine site at December 31, 2019 is a long-term gold price of $1,300 per ounce. A decrease of $100 per ounce in the long-term gold price assumption could result in an impairment of our long lived assets of up to approximately $4,500 before consideration of other value beyond proven and probable reserves which may significantly decrease the amount of any potential impairment charge.

Other assumptions include proven and probable mineral reserve estimates, value beyond proven and probable reserve estimates, the timing and cost to develop and produce the reserves, commodity-based and other input costs, future closure costs and discount rates unique to each operation, as well as a long-term metal prices and applicable U.S. dollar long-term exchange rates. Refer to Quantitative and Qualitative Disclosures.

As discussed above under Depreciation and amortization, various factors could impact our ability to achieve our forecasted production schedules from proven and probable reserves which could impact the carrying value of our long-lived assets. The ability to achieve the estimated quantities of recoverable minerals from exploration stage mineral interests involves further risks in addition to those factors applicable to mineral interests where proven and probable reserves have been identified, due to the lower level of confidence that the identified mineralized material could ultimately be mined economically. Assets classified as exploration potential have the highest level of risk that the carrying value of the asset can be ultimately realized, due to the still lower level of geological confidence and economic modeling.

Events that could result in additional impairment of our long-lived assets include, but are not limited to, decreases in future metal prices, unfavorable changes in foreign exchange rates, increases in future closure costs, and any event that might otherwise have a material adverse effect on mine site cash flows.

Refer to Note 8 of the Consolidated Financial Statements for further information regarding impairments.

Reclamation and remediation obligations

Reclamation costs are allocated to expense over the life of the related assets and are periodically adjusted to reflect changes in the estimated present value resulting from the passage of time and revisions to the estimates of either the timing or amount of the reclamation costs. Reclamation obligations are based on when the spending for an existing environmental disturbance will occur. Changes in reclamation estimates at non-operating mines are reflected in earnings in the period an estimate is revised. We review, on at least an annual basis, the reclamation obligation at each mine.

Remediation costs are accrued based on management’s best estimate at the end of each period of the costs expected to be incurred at a site. Such cost estimates may include ongoing care, maintenance and monitoring costs. Changes in remediation estimates at inactive mines are reflected in earnings in the period an estimate is revised. Water treatment costs included in environmental remediation obligations are discounted to their present value as cash flows are readily estimable. All other costs of future expenditures for environmental remediation obligations are not discounted to their present value.

Accounting for reclamation and remediation obligations requires management to make estimates unique to each mining operation of the future costs we will incur to complete the reclamation and remediation work required to comply with existing laws

and regulations. Any such changes in future costs, the timing of reclamation activities, scope, or the exclusion of certain costs not considered reclamation and remediation costs, could materially impact the amounts charged to earnings for reclamation and remediation. Additionally, future changes to environmental laws and regulations could increase the extent of reclamation and remediation work required.

Refer to Note 7 of the Consolidated Financial Statements for further information regarding reclamation and remediation obligations.

Income and mining taxes

We account for income taxes using the liability method, recognizing certain temporary differences between the financial reporting basis of our liabilities and assets and the related income tax basis for such liabilities and assets. This method generates either a net deferred income tax liability or asset for us, as measured by the statutory tax rates in effect. We derive our deferred income tax charge or benefit by recording the change in either the net deferred income tax liability or asset balance for the year. The financial statement effects of changes in tax law are recorded as discrete items in the period enacted as part of income tax expense or benefit from continuing operations, regardless of the category of income or loss to which the deferred taxes relate.

Mining taxes represent state and provincial taxes levied on mining operations and are classified as income taxes as such taxes are based on a percentage of mining profits. With respect to the earnings that we derive from the operations of our consolidated subsidiaries, in those situations where the earnings are indefinitely reinvested, no deferred taxes have been provided on the unremitted earnings (including the excess of the carrying value of the net equity of such entities for financial reporting purposes over the tax basis of such equity) of our consolidated companies.

Our operations are in multiple jurisdictions where uncertainties arise in the application of complex tax regulations. Some of these tax regimes are defined by contractual agreements with the local government, while others are defined by general tax laws and regulations. We are subject to reviews of our income tax filings and other tax payments, and disputes can arise with the taxing authorities over the interpretation of its contracts or laws. We recognize potential liabilities and record tax liabilities for anticipated tax audit issues in the U.S. and other tax jurisdictions based on our estimate of whether, and the extent to which, additional taxes will be due. We adjust these reserves in light of changing facts and circumstances; however, due to the complexity of some of these uncertainties, the ultimate resolution may result in a payment that is materially different from our current estimate of the tax liabilities. If our estimate of tax liabilities proves to be less than the ultimate assessment, an additional charge to expense would result. If the estimate of tax liabilities proves to be greater than the ultimate assessment, a tax benefit would result. We recognize interest and penalties, if any, related to unrecognized tax benefits in Income and mining tax benefit (expense). In certain jurisdictions, we must pay a portion of the disputed amount to the local government in order to formally appeal the assessment. Such payment is recorded as a receivable if we believe the amount is ultimately collectible.

Valuation of deferred tax assets

Our deferred income tax assets include certain future tax benefits. We record a valuation allowance against any portion of those deferred income tax assets when we believe, based on the weight of available evidence, it is more likely than not that some portion or all of the deferred income tax asset will not be realized. We review the likelihood that we will realize the benefit of our deferred tax assets and therefore the need for valuation allowances on a quarterly basis, or more frequently if events indicate that a review is required. In determining the requirement for a valuation allowance, the historical and projected financial results of the legal entity or consolidated group recording the net deferred tax asset is considered, along with all other available positive and negative evidence.

Certain categories of evidence carry more weight in the analysis than others based upon the extent to which the evidence may be objectively verified. We look to the nature and severity of cumulative pretax losses (if any) in the current three-year period ending on the evaluation date or the expectation of future pretax losses and the existence and frequency of prior cumulative pretax losses.

We utilize a rolling twelve quarters of pre-tax income or loss as a measure of our cumulative results in recent years. Concluding that a valuation allowance is not required is difficult when there is significant negative evidence which is objective and verifiable, such as cumulative losses in recent years. However, a cumulative three year loss is not solely determinative of the need for a valuation allowance. We also consider all other available positive and negative evidence in our analysis.

Other factors considered in the determination of the probability of the realization of the deferred tax assets include, but are not limited to:

	●	Earnings history;

	●	Projected future financial and taxable income based upon existing reserves and long-term estimates of commodity prices;

	●	The duration of statutory carry forward periods;

	●	Prudent and feasible tax planning strategies readily available that may alter the timing of reversal of the temporary difference;

	●	Nature of temporary differences and predictability of reversal patterns of existing temporary differences; and

	●	The sensitivity of future forecasted results to commodity prices and other factors.

The Company assesses the available positive and negative evidence to estimate if sufficient future taxable income will be generated to utilize the existing deferred tax assets. A significant piece of objective negative evidence evaluated was the recent pretax losses and/or expectations of future pretax losses. Such objective evidence limits the ability to consider other subjective evidence such as our projections for future growth. On the basis of this evaluation, a valuation allowance has been recorded in Peru. The amount of the deferred tax asset considered realizable, however, could be adjusted if estimates of future taxable income during the carryforward period are increased or if objective negative evidence in the form of cumulative losses is no longer present and additional weight may be given to subjective evidence such as our projections for growth.

During 2019, the Company released net valuation allowance of $296 to tax expense. The acquisition of Goldcorp increased the Company’s valuation allowance on deferred tax assets by $521. The Company reclassified valuation allowance of $371 to assets held for sale. There were additional valuation allowance increases related to other components of the financial statements of $263.

For additional risk factors that could impact the Company’s ability to realize the deferred tax assets, see Note 2 to the Consolidated Financial Statements.

Business Combinations

We recognize and measure the assets acquired and liabilities assumed in a business combination based on their estimated fair values at the acquisition date, while transaction and integration costs related to business combinations are expensed as incurred. Any excess of the purchase consideration when compared to the fair value of the net tangible and intangible assets acquired, if any, is recorded as goodwill. For material acquisitions, we engage independent appraisers to assist with the determination of the fair value of assets acquired, liabilities assumed, noncontrolling interest, if any, and goodwill, based on recognized business valuation methodologies. An income, market or cost valuation method may be utilized to estimate the fair value of the assets acquired, liabilities assumed, and noncontrolling interest, if any, in a business combination. The income valuation method represents the present value of future cash flows over the life of the asset using: (i) discrete financial forecasts, which rely on management’s estimates of reserve quantities and exploration potential, costs to produce and develop reserves, revenues, and operating expenses; (ii) long-term growth rates; (iii) appropriate discount rates; and (iv) expected future capital requirements (“income valuation method”). The market valuation method uses prices paid for a similar asset by other purchasers in the market, normalized for any differences between the assets (“market valuation method”). The cost valuation method is based on the replacement cost of a comparable asset at the time of the acquisition adjusted for depreciation and economic and functional obsolescence of the asset (“cost valuation method”). The fair value of property, plant and mine development is estimated to include the fair value of asset retirement costs of related long-lived tangible assets. If the initial accounting for the business combination is incomplete by the end of the reporting period in which the acquisition occurs, an estimate will be recorded. Subsequent to the acquisition date, and not later than one year from the acquisition date, we will record any material adjustments to the initial estimate based on new information obtained that would have existed as of the date of the acquisition. Any adjustment that arises from information obtained that did not exist as of the date of the acquisition will be recorded in the period the adjustments arises.

Goodwill

Goodwill represents the excess of the purchase price over the estimated fair value of the net assets acquired in a business acquisition. Goodwill is allocated to reporting units and tested for impairment annually and when events or changes in circumstances

indicate that the carrying value of a reporting unit exceeds its fair value. The fair value of a reporting unit is determined using the income and/or market valuation methods. If the carrying amount of the reporting unit exceeds its fair value, an impairment loss is recognized in an amount equal to that excess, limited to the total amount of goodwill allocated to that reporting unit. Any impairment loss recognized in the current period is not reversed in the future periods. We recognize our pro rata share of Goodwill and any subsequent goodwill impairment losses recorded by unincorporated joint ventures in which it has an undivided interest.

Previous: Item 4. MINE SAFETY DISCLOSURES · Next: Item 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK (dollars in millions, except per ounce and per pound amounts).