filings.toolsItem 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
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Item 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
INDEX TO FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Stockholders and Board of Directors of Newmont Corporation
Opinion on the Financial Statements
We have audited the accompanying consolidated balance sheets of Newmont Corporation (the Company) as of December 31, 2024 and 2023, the related consolidated statements of operations, comprehensive income (loss), changes in equity and cash flows for each of the three years in the period ended December 31, 2024, the related notes and the financial statement schedule in Item 15(a)(2) (collectively referred to as the “consolidated financial statements”). In our opinion, based on our audits and the report of PricewaterhouseCoopers LLP, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of the Company at December 31, 2024 and 2023, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2024, in conformity with U.S. generally accepted accounting principles.
We did not audit the financial statements of Nevada Gold Mines LLC, a 38.5% owned investment which is proportionately consolidated, whose financial statements reflect total assets constituting 13% and 13% of consolidated assets as of December 31, 2024 and 2023, respectively, and sales constituting 13% in 2024, 19% in 2023, and 18% 2022 of the related consolidated totals. Those statements were audited by PricewaterhouseCoopers LLP, whose report has been furnished to us, and our opinion, insofar as it relates to the amounts included for Nevada Gold Mines LLC, is based solely on the report of PricewaterhouseCoopers LLP.
We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company's internal control over financial reporting as of December 31, 2024, based on criteria established in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission 2013 framework, and our report dated February 20, 2025 expressed an unqualified opinion thereon, based on our audit and the report of PricewaterhouseCoopers LLP.
Basis for Opinion
These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company’s financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits and the report of PricewaterhouseCoopers LLP provide a reasonable basis for our opinion.
Critical Audit Matter
The critical audit matter communicated below is a matter arising from the current period audit of the financial statements that was communicated or required to be communicated to the audit committee and that: (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective or complex judgments. The communication of the critical audit matter does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.
| Reclamation liabilities | |||||
| Description of the Matter | As discussed in Notes 2, 6 and 25 of the consolidated financial statements, the Company’s mining and exploration activities are subject to various domestic and international laws and regulations governing the protection of the environment. Reclamation obligations are recognized when incurred and recorded as liabilities at fair value. Reclamation liabilities are periodically adjusted to reflect changes in the estimated present value resulting from revisions to the estimates of either the timing or amount of the reclamation costs. As of December 31, 2024, the Company’s consolidated reclamation liabilities totaled $8.5 billion, including $1.5 billion included in liabilities held for sale. Auditing management’s accounting for reclamation liabilities was challenging, as significant judgment is required by the Company to estimate required cash flows to meet obligations established by mining permits, local statutes and promissory estoppel at the end of mine life as well as estimation of uncertainty inherent in the cash flows. The significant judgment was primarily related to the inherent estimation uncertainty relating to the extent of future reclamation activities and related costs. | ||||
| How We Addressed the Matter in Our Audit | We obtained an understanding, evaluated the design, and tested the operating effectiveness of the controls over the Company’s accounting for reclamation liabilities, including controls over management’s review of estimated future costs and the reclamation liability calculation. To test the reclamation liabilities, among other procedures, we evaluated the methodology, significant assumptions and the underlying data used by the Company in its estimate. To assess the estimates of reclamation activities and cash flows, we evaluated significant changes from the prior estimate, verified consistency between timing of reclamation activities and projected mine life, compared anticipated costs across the Company’s mines, verified cost rates against third-party information or internal cost records and recalculated management’s estimate. We also evaluated the significant assumptions included in the fair value calculation, specifically the market risk premium. We involved our reclamation specialists to interview members of the Company’s engineering staff, assess the completeness of the mine reclamation estimates with respect to meeting mine closure and post closure requirements, and evaluate the reasonableness of the engineering estimates and assumptions. |
/s/ Ernst & Young LLP
We have served as the Company’s auditor since 2014.
Denver, Colorado
February 20, 2025
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Board of Managers and Members of Nevada Gold Mines LLC
Opinions on the financial statements and internal control over financial reporting
We have audited the consolidated balance sheets of Nevada Gold Mines LLC and its subsidiaries (the Joint Venture) as of December 31, 2024 and 2023, and the related consolidated statements of operations and comprehensive income, of changes in members’ equity and of cash flows for each of the three years in the period ended December 31, 2024, including the related notes (collectively referred to as the consolidated financial statements) (not presented herein). We also have audited the Joint Venture’s internal control over financial reporting as of December 31, 2024, based on criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).
In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of the Joint Venture as of December 31, 2024 and 2023, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2024 in conformity with accounting principles generally accepted in the United States of America. Also in our opinion, the Joint Venture maintained, in all material respects, effective internal control over financial reporting as of December 31, 2024, based on criteria established in Internal Control – Integrated Framework (2013) issued by the COSO.
Basis for opinions
The Joint Venture’s management is responsible for these consolidated financial statements, for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting, included in the Management’s Report on Internal Control over Financial Reporting (not presented herein). Our responsibility is to express opinions on the Joint Venture’s consolidated financial statements and on the Joint Venture’s internal control over financial reporting based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Joint Venture in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud, and whether effective internal control over financial reporting was maintained in all material respects.
Our audits of the consolidated financial statements included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements.
Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audits also included performing such other procedures as we considered necessary in the circumstances. We believe that our audits provide a reasonable basis for our opinions.
Definition and limitations of internal control over financial reporting
A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Critical audit matters
The critical audit matter communicated below is a matter arising from the current period audit of the consolidated financial statements that was communicated or required to be communicated to the Board of Managers (acting in a role equivalent to the audit committee)
and that (i) relates to accounts or disclosures that are material to the consolidated financial statements and (ii) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.
Qualitative goodwill impairment assessment
As described in note 2 to the Joint Venture's consolidated financial statements, the Joint Venture’s goodwill balance was $668 million (at a 100 percent economic interest) as of December 31, 2024. Goodwill is allocated to reporting units and assessed for impairment annually, in the fourth quarter of the fiscal year, and when events or changes in circumstances indicate that the carrying value of a reporting unit exceeds its fair value. The Joint Venture has four reporting units. The Joint Venture's management first assesses qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount (qualitative goodwill impairment assessment).
If it is determined that the fair value is more likely than not to be lower than the carrying value, a quantitative goodwill impairment test is performed. Management uses judgment in assessing the qualitative factors in the qualitative goodwill impairment assessment for each reporting unit, including significant adverse changes to future gold prices, future operating and capital costs, future production levels and mineral reserves and mineral resources. Management uses future production levels and mineral reserves and mineral resources based on information compiled by qualified persons (management’s specialists).
The principal considerations for our determination that performing procedures relating to the qualitative goodwill impairment assessment is a critical audit matter are the judgment by management in assessing the qualitative factors in the qualitative goodwill impairment assessment for each reporting unit to determine whether further quantitative impairment testing is required, and a high degree of auditor judgment, subjectivity and effort in performing procedures and evaluating management's assessment of qualitative factors in the qualitative goodwill impairment assessment for each reporting unit with respect to significant adverse changes to future gold prices, future operating and capital costs, future production levels and mineral reserves and mineral resources.
Addressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the consolidated financial statements. These procedures included testing the effectiveness of controls relating to management’s qualitative goodwill impairment assessment. These procedures also included, among others, evaluating the reasonableness of management's qualitative goodwill impairment assessment for each reporting unit with respect to significant adverse changes to future gold prices and future operating and capital costs by (i) comparing gold prices to external industry data; (ii) comparing operating and capital costs to recent actual operating and capital costs incurred; and (iii) considering consistency with evidence obtained in other areas of the audit. The work of management’s specialists was used in performing the procedures to evaluate the reasonableness of future production levels and mineral reserves and mineral resources. As a basis for using this work, the management's specialists' qualifications were understood and the Joint Venture’s relationship with management’s specialists was assessed. The procedures performed also included evaluation of the methods and assumptions used by management’s specialists, tests of the data used by management’s specialists, and an evaluation of management's specialists' findings.
/s/PricewaterhouseCoopers LLP
Chartered Professional Accountants, Licensed Public Accountants
Toronto, Canada
February 20, 2025
We have served as the Joint Venture’s auditor since 2019.
NEWMONT CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
| Year Ended December 31, | |||||||||||||||||
| 2024 | 2023 | 2022 | |||||||||||||||
| (in millions, except per share) | |||||||||||||||||
| Sales (Note 5) | $ | 18,682 | $ | 11,812 | $ | 11,915 | |||||||||||
| Costs and expenses: | |||||||||||||||||
| Costs applicable to sales (1) | 8,963 | 6,699 | 6,468 | ||||||||||||||
| Depreciation and amortization | 2,576 | 2,108 | 2,185 | ||||||||||||||
| Reclamation and remediation (Note 6) | 328 | 1,533 | 921 | ||||||||||||||
| Exploration | 266 | 265 | 231 | ||||||||||||||
| Advanced projects, research and development | 197 | 200 | 229 | ||||||||||||||
| General and administrative | 442 | 299 | 276 | ||||||||||||||
| Impairment charges (Note 7) | 78 | 1,891 | 1,320 | ||||||||||||||
| Loss on assets held for sale (Note 3) | 1,114 | — | — | ||||||||||||||
| Other expense, net (Note 8) | 191 | 517 | 82 | ||||||||||||||
| 14,155 | 13,512 | 11,712 | |||||||||||||||
| Other income (expense): | |||||||||||||||||
| Other income (loss), net (Note 9) | 425 | (88) | (27) | ||||||||||||||
| Interest expense, net of capitalized interest of $114, $89 and $69, respectively | (375) | (243) | (227) | ||||||||||||||
| 50 | (331) | (254) | |||||||||||||||
| Income (loss) before income and mining tax and other items | 4,577 | (2,031) | (51) | ||||||||||||||
| Income and mining tax benefit (expense) (Note 10) | (1,397) | (526) | (455) | ||||||||||||||
| Equity income (loss) of affiliates (Note 15) | 133 | 63 | 107 | ||||||||||||||
| Net income (loss) from continuing operations | 3,313 | (2,494) | (399) | ||||||||||||||
| Net income (loss) from discontinued operations (Note 1) | 68 | 27 | 30 | ||||||||||||||
| Net income (loss) | 3,381 | (2,467) | (369) | ||||||||||||||
| Net loss (income) attributable to noncontrolling interests (Note 1) | (33) | (27) | (60) | ||||||||||||||
| Net income (loss) attributable to Newmont stockholders | $ | 3,348 | $ | (2,494) | $ | (429) | |||||||||||
| Net income (loss) attributable to Newmont stockholders: | |||||||||||||||||
| Continuing operations | $ | 3,280 | $ | (2,521) | $ | (459) | |||||||||||
| Discontinued operations | 68 | 27 | 30 | ||||||||||||||
| $ | 3,348 | $ | (2,494) | $ | (429) | ||||||||||||
| Weighted average common shares: | |||||||||||||||||
| Basic | 1,146 | 841 | 794 | ||||||||||||||
| Effect of employee stock-based awards | 2 | — | 1 | ||||||||||||||
| Diluted | 1,148 | 841 | 795 | ||||||||||||||
| Net income (loss) per common share: | |||||||||||||||||
| Basic: | |||||||||||||||||
| Continuing operations | $ | 2.86 | $ | (3.00) | $ | (0.58) | |||||||||||
| Discontinued operations | 0.06 | 0.03 | 0.04 | ||||||||||||||
| $ | 2.92 | $ | (2.97) | $ | (0.54) | ||||||||||||
| Diluted: (2) | |||||||||||||||||
| Continuing operations | $ | 2.86 | $ | (3.00) | $ | (0.58) | |||||||||||
| Discontinued operations | 0.06 | 0.03 | 0.04 | ||||||||||||||
| $ | 2.92 | $ | (2.97) | $ | (0.54) |
____________________________
(1)Excludes Depreciation and amortization and Reclamation and remediation.
(2)For the years ended December 31, 2023 and 2022, potentially dilutive shares were excluded in the computation of diluted loss per common share attributable to Newmont stockholders as they were antidilutive.
The accompanying notes are an integral part of these Consolidated Financial Statements.
NEWMONT CORPORATION
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
| Year Ended December 31, | |||||||||||||||||
| 2024 | 2023 | 2022 | |||||||||||||||
| (in millions) | |||||||||||||||||
| Net income (loss) | $ | 3,381 | $ | (2,467) | $ | (369) | |||||||||||
| Other comprehensive income (loss): | |||||||||||||||||
| Change in cash flow hedges, net of tax | (123) | (1) | 19 | ||||||||||||||
| Change in pension and other post-retirement benefits, net of tax | 8 | (9) | 139 | ||||||||||||||
| Other adjustments, net of tax | 6 | (5) | 4 | ||||||||||||||
| Other comprehensive income (loss) | (109) | (15) | 162 | ||||||||||||||
| Comprehensive income (loss) | $ | 3,272 | $ | (2,482) | $ | (207) | |||||||||||
| Comprehensive income (loss) attributable to: | |||||||||||||||||
| Newmont stockholders | $ | 3,239 | $ | (2,509) | $ | (267) | |||||||||||
| Noncontrolling interests | 33 | 27 | 60 | ||||||||||||||
| $ | 3,272 | $ | (2,482) | $ | (207) |
The accompanying notes are an integral part of these Consolidated Financial Statements.
NEWMONT CORPORATION
CONSOLIDATED BALANCE SHEETS
| At December 31, 2024 | At December 31, 2023 | ||||||||||
| (in millions, except per share) | |||||||||||
| ASSETS | |||||||||||
| Cash and cash equivalents | $ | 3,619 | $ | 3,002 | |||||||
| Trade receivables (Note 5) | 1,056 | 734 | |||||||||
| Investments (Note 15) | 21 | 23 | |||||||||
| Inventories (Note 16) | 1,423 | 1,663 | |||||||||
| Stockpiles and ore on leach pads (Note 17) | 761 | 979 | |||||||||
| Derivative assets (Note 14) | — | 198 | |||||||||
| Other current assets | 786 | 913 | |||||||||
| Assets held for sale (Note 3) | 4,609 | — | |||||||||
| Current assets | 12,275 | 7,512 | |||||||||
| Property, plant and mine development, net (Note 18) | 33,547 | 37,563 | |||||||||
| Investments ($212 and $— valued under fair value option) (Note 15) | 4,471 | 4,143 | |||||||||
| Stockpiles and ore on leach pads (Note 17) | 2,266 | 1,935 | |||||||||
| Deferred income tax assets (Note 10) | 124 | 268 | |||||||||
| Goodwill (Note 19) | 2,658 | 3,001 | |||||||||
| Derivative assets (Note 14) | 142 | 444 | |||||||||
| Other non-current assets | 866 | 640 | |||||||||
| Total assets | $ | 56,349 | $ | 55,506 | |||||||
| LIABILITIES | |||||||||||
| Accounts payable | $ | 843 | $ | 960 | |||||||
| Employee-related benefits (Note 11) | 630 | 551 | |||||||||
| Income and mining taxes | 381 | 88 | |||||||||
| Lease and other financing obligations (Note 21) | 107 | 114 | |||||||||
| Debt (Note 20) | 924 | 1,923 | |||||||||
| Other current liabilities (Note 22) | 2,481 | 2,362 | |||||||||
| Liabilities held for sale (Note 3) | 2,177 | — | |||||||||
| Current liabilities | 7,543 | 5,998 | |||||||||
| Debt (Note 20) | 7,552 | 6,951 | |||||||||
| Lease and other financing obligations (Note 21) | 389 | 448 | |||||||||
| Reclamation and remediation liabilities (Note 6) | 6,394 | 8,167 | |||||||||
| Deferred income tax liabilities (Note 10) | 2,820 | 2,987 | |||||||||
| Employee-related benefits (Note 11) | 555 | 655 | |||||||||
| Silver streaming agreement (Note 5) | 699 | 779 | |||||||||
| Other non-current liabilities ($51 and $— valued under fair value option) (Note 22) | 288 | 316 | |||||||||
| Total liabilities | 26,240 | 26,301 | |||||||||
| Commitments and contingencies (Note 25) | |||||||||||
| EQUITY | |||||||||||
| Common stock - $1.60 par value; | 1,813 | 1,854 | |||||||||
| Authorized - 2,550 million and 2,550 million shares, respectively | |||||||||||
| Outstanding shares - 1,127 million and 1,152 million shares, respectively | |||||||||||
| Treasury stock - 7 million and 7 million shares, respectively | (278) | (264) | |||||||||
| Additional paid-in capital | 29,808 | 30,419 | |||||||||
| Accumulated other comprehensive income (loss) (Note 23) | (95) | 14 | |||||||||
| (Accumulated deficit) Retained earnings | (1,320) | (2,996) | |||||||||
| Newmont stockholders' equity | 29,928 | 29,027 | |||||||||
| Noncontrolling interests | 181 | 178 | |||||||||
| Total equity | 30,109 | 29,205 | |||||||||
| Total liabilities and equity | $ | 56,349 | $ | 55,506 |
The accompanying notes are an integral part of these Consolidated Financial Statements.
NEWMONT CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
| Year Ended December 31, | |||||||||||||||||
| 2024 | 2023 | 2022 | |||||||||||||||
| (in millions) | |||||||||||||||||
| Operating activities: | |||||||||||||||||
| Net income (loss) | $ | 3,381 | $ | (2,467) | $ | (369) | |||||||||||
| Adjustments: | |||||||||||||||||
| Depreciation and amortization | 2,576 | 2,108 | 2,185 | ||||||||||||||
| Impairment charges (Note 7) | 78 | 1,891 | 1,320 | ||||||||||||||
| Loss on assets held for sale (Note 3) | 1,114 | — | — | ||||||||||||||
| Net loss (income) from discontinued operations (Note 1) | (68) | (27) | (30) | ||||||||||||||
| Reclamation and remediation | 302 | 1,506 | 892 | ||||||||||||||
| Stock-based compensation (Note 12) | 89 | 80 | 73 | ||||||||||||||
| Deferred income taxes (Note 10) | 80 | (104) | (278) | ||||||||||||||
| Change in fair value of investments and options (Note 9) | (62) | 47 | 46 | ||||||||||||||
| (Gain) loss on asset and investment sales (Note 9) | (35) | 197 | (35) | ||||||||||||||
| Pension settlements (Note 11) | 1 | 9 | 137 | ||||||||||||||
| Other non-cash adjustments | (113) | 27 | 98 | ||||||||||||||
| Net change in operating assets and liabilities (Note 24) | (1,025) | (513) | (841) | ||||||||||||||
| Net cash provided by (used in) operating activities of continuing operations | 6,318 | 2,754 | 3,198 | ||||||||||||||
| Net cash provided by (used in) operating activities of discontinued operations (Note 1) | 45 | 9 | 22 | ||||||||||||||
| Net cash provided by (used in) operating activities | 6,363 | 2,763 | 3,220 | ||||||||||||||
| Investing activities: | |||||||||||||||||
| Additions to property, plant and mine development | (3,402) | (2,666) | (2,131) | ||||||||||||||
| Proceeds from sales of mining operations and other assets, net | 560 | — | 16 | ||||||||||||||
| Contributions to equity method investees | (96) | (108) | (194) | ||||||||||||||
| Purchases of investments | (66) | (551) | (940) | ||||||||||||||
| Return of investment from equity method investees | 56 | 36 | 62 | ||||||||||||||
| Maturities of investments | 28 | 1,363 | 93 | ||||||||||||||
| Proceeds from sales of investments | 21 | 234 | 171 | ||||||||||||||
| Acquisitions, net (1) | — | 668 | (15) | ||||||||||||||
| Other | 44 | 22 | (45) | ||||||||||||||
| Net cash provided by (used in) investing activities of continuing operations | (2,855) | (1,002) | (2,983) | ||||||||||||||
| Net cash provided by (used in) investing activities of discontinued operations (Note 1) | 153 | — | — | ||||||||||||||
| Net cash provided by (used in) investing activities | (2,702) | (1,002) | (2,983) | ||||||||||||||
| Financing activities: | |||||||||||||||||
| Repayment of debt | (3,860) | — | (89) | ||||||||||||||
| Proceeds from issuance of debt, net (Note 20) | 3,476 | — | — | ||||||||||||||
| Repurchases of common stock (Note 2) | (1,246) | — | — | ||||||||||||||
| Dividends paid to common stockholders | (1,145) | (1,415) | (1,746) | ||||||||||||||
| Distributions to noncontrolling interests | (161) | (150) | (191) | ||||||||||||||
| Funding from noncontrolling interests | 115 | 138 | 117 | ||||||||||||||
| Payments on lease and other financing obligations (Note 21) | (87) | (67) | (66) | ||||||||||||||
| Payments for withholding of employee taxes related to stock-based compensation | (14) | (25) | (39) | ||||||||||||||
| Acquisition of noncontrolling interests (Note 1) | — | — | (348) | ||||||||||||||
| Other | (31) | (84) | 6 | ||||||||||||||
| Net cash provided by (used in) financing activities | (2,953) | (1,603) | (2,356) | ||||||||||||||
| Effect of exchange rate changes on cash, cash equivalents and restricted cash | (20) | (2) | (30) | ||||||||||||||
| Net change in cash, cash equivalents and restricted cash, including cash and restricted cash reclassified to assets held for sale | 688 | 156 | (2,149) | ||||||||||||||
| Less: Cash and restricted cash reclassified to assets held for sale (2) | (138) | — | — | ||||||||||||||
| Net change in cash, cash equivalents and restricted cash | 550 | 156 | (2,149) | ||||||||||||||
| Cash, cash equivalents and restricted cash at beginning of period | 3,100 | 2,944 | 5,093 | ||||||||||||||
| Cash, cash equivalents and restricted cash at end of period | $ | 3,650 | $ | 3,100 | $ | 2,944 | |||||||||||
NEWMONT CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
| Year Ended December 31, | |||||||||||||||||
| 2024 | 2023 | 2022 | |||||||||||||||
| (in millions) | |||||||||||||||||
| Reconciliation of cash, cash equivalents and restricted cash: | |||||||||||||||||
| Cash and cash equivalents | $ | 3,619 | $ | 3,002 | $ | 2,877 | |||||||||||
| Restricted cash included in Other current assets | 1 | 11 | 1 | ||||||||||||||
| Restricted cash included in Other non-current assets | 30 | 87 | 66 | ||||||||||||||
| Total cash, cash equivalents and restricted cash | $ | 3,650 | $ | 3,100 | $ | 2,944 | |||||||||||
| Supplemental cash flow information: | |||||||||||||||||
| Income and mining taxes paid, net of refunds | $ | 966 | $ | 794 | $ | 1,122 | |||||||||||
| Interest paid, net of amounts capitalized | $ | 317 | $ | 228 | $ | 172 |
____________________________
(1)Acquisitions, net is primarily related to the cash acquired in the Newcrest transaction for the year ended December 31, 2023. Refer to Note 1 for additional information.
(2)During the first quarter of 2024, certain non-core assets were determined to meet the criteria for assets held for sale. As a result, at December 31, 2024 the related assets, including $45 of Cash and cash equivalents and $93 of restricted cash, included in Other current assets and Other non-current assets, were reclassified to Assets held for sale. Refer to Note 3 for additional information.
The accompanying notes are an integral part of these Consolidated Financial Statements.
NEWMONT CORPORATION
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
(in millions, except per share)
| Common Stock | Treasury Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings (Accumulated Deficit) | Noncontrolling Interests | Total Equity | Contingently Redeemable Noncontrolling Interest (2) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Shares | Amount | Shares | Amount | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Balance at December 31, 2021 | 797 | $ | 1,276 | (5) | $ | (200) | $ | 17,981 | $ | (133) | $ | 3,098 | $ | (209) | $ | 21,813 | $ | 48 | |||||||||||||||||||||||||||||||||||||||||
| Net income (loss) | — | — | — | — | — | — | (429) | 60 | (369) | — | |||||||||||||||||||||||||||||||||||||||||||||||||
| Other comprehensive income (loss) | — | — | — | — | — | 162 | — | — | 162 | — | |||||||||||||||||||||||||||||||||||||||||||||||||
| Dividends declared (1) | — | — | — | — | — | — | (1,753) | — | (1,753) | — | |||||||||||||||||||||||||||||||||||||||||||||||||
| Distributions declared to noncontrolling interests | — | — | — | — | — | — | — | (191) | (191) | — | |||||||||||||||||||||||||||||||||||||||||||||||||
| Cash calls requested from noncontrolling interests | — | — | — | — | — | — | — | 120 | 120 | — | |||||||||||||||||||||||||||||||||||||||||||||||||
| Withholding of employee taxes related to stock-based compensation | — | — | (1) | (39) | — | — | — | — | (39) | — | |||||||||||||||||||||||||||||||||||||||||||||||||
| Acquisition of non-controlling interests | — | — | — | — | (699) | — | — | 399 | (300) | — | |||||||||||||||||||||||||||||||||||||||||||||||||
| Reclassification of contingently redeemable non-controlling interests | — | — | — | — | — | — | — | — | — | (48) | |||||||||||||||||||||||||||||||||||||||||||||||||
| Stock options exercised | — | — | — | — | 14 | — | — | — | 14 | — | |||||||||||||||||||||||||||||||||||||||||||||||||
| Stock-based awards and related share issuances | 2 | 3 | — | — | 73 | — | — | — | 76 | — | |||||||||||||||||||||||||||||||||||||||||||||||||
| Balance at December 31, 2022 | 799 | 1,279 | (6) | (239) | 17,369 | 29 | 916 | 179 | 19,533 | — | |||||||||||||||||||||||||||||||||||||||||||||||||
| Net income (loss) | — | — | — | — | — | — | (2,494) | 27 | (2,467) | — | |||||||||||||||||||||||||||||||||||||||||||||||||
| Other comprehensive income (loss) | — | — | — | — | — | (15) | — | — | (15) | — | |||||||||||||||||||||||||||||||||||||||||||||||||
| Shares issued for Newcrest transaction | 358 | 572 | — | — | 12,977 | — | — | — | 13,549 | — | |||||||||||||||||||||||||||||||||||||||||||||||||
| Dividends declared (1) | — | — | — | — | — | — | (1,418) | — | (1,418) | — | |||||||||||||||||||||||||||||||||||||||||||||||||
| Distributions declared to noncontrolling interests | — | — | — | — | — | — | — | (156) | (156) | — | |||||||||||||||||||||||||||||||||||||||||||||||||
| Cash calls requested from noncontrolling interests | — | — | — | — | — | — | — | 128 | 128 | — | |||||||||||||||||||||||||||||||||||||||||||||||||
| Withholding of employee taxes related to stock-based compensation | — | — | (1) | (25) | — | — | — | — | (25) | — | |||||||||||||||||||||||||||||||||||||||||||||||||
| Stock-based awards and related share issuances | 2 | 3 | — | — | 73 | — | — | — | 76 | — | |||||||||||||||||||||||||||||||||||||||||||||||||
| Balance at December 31, 2023 | 1,159 | 1,854 | (7) | (264) | 30,419 | 14 | (2,996) | 178 | 29,205 | — | |||||||||||||||||||||||||||||||||||||||||||||||||
| Net income (loss) | — | — | — | — | — | — | 3,348 | 33 | 3,381 | — | |||||||||||||||||||||||||||||||||||||||||||||||||
| Other comprehensive income (loss) | — | — | — | — | — | (109) | — | — | (109) | — | |||||||||||||||||||||||||||||||||||||||||||||||||
| Dividends declared (1) | — | — | — | — | — | — | (1,148) | — | (1,148) | — | |||||||||||||||||||||||||||||||||||||||||||||||||
| Distributions declared to noncontrolling interests | — | — | — | — | — | — | — | (156) | (156) | — | |||||||||||||||||||||||||||||||||||||||||||||||||
| Cash calls requested from noncontrolling interests | — | — | — | — | — | — | — | 126 | 126 | — | |||||||||||||||||||||||||||||||||||||||||||||||||
| Repurchase and retirement of common stock | (26) | (42) | — | — | (693) | — | (524) | — | (1,259) | — | |||||||||||||||||||||||||||||||||||||||||||||||||
| Withholding of employee taxes related to stock-based compensation | — | — | — | (14) | — | — | — | — | (14) | — | |||||||||||||||||||||||||||||||||||||||||||||||||
| Stock-based awards and related share issuances | 1 | 1 | — | — | 82 | — | — | — | 83 | — | |||||||||||||||||||||||||||||||||||||||||||||||||
| Balance at December 31, 2024 | 1,134 | $ | 1,813 | (7) | $ | (278) | $ | 29,808 | $ | (95) | $ | (1,320) | $ | 181 | $ | 30,109 | $ | — |
____________________________
(1)Cash dividends paid per common share was $1.00, $1.60 and $2.20 for 2024, 2023 and 2022, respectively. Dividends declared and dividends paid to common stockholders differ by $3, $3, and $7 for 2024, 2023 and 2022, respectively, due to timing.
(2)Sumitomo held a 5% interest in Yanacocha at December 31, 2021 and had the option to require Yanacocha to repurchase their interest for $48 if certain conditions were not met. The Company purchased Sumitomo's 5% interest during 2022. Refer to Note 1 for further information.
The accompanying notes are an integral part of these Consolidated Financial Statements.
NEWMONT CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(dollars in millions, except per share, per ounce and per pound amounts)
NOTE 1 THE COMPANY
Newmont Corporation and its affiliates and subsidiaries (collectively, “Newmont,” “we,” “us” or the “Company”) predominantly operate in the mining industry, focused on the production of and exploration for gold properties, some of which may contain copper, silver, zinc, lead or other metals. The Company has significant operations and/or assets in the United States (“U.S.”), Canada, Mexico, Dominican Republic, Peru, Suriname, Argentina, Chile, Australia, Papua New Guinea, Ecuador, Fiji, and Ghana. The cash flow and profitability of the Company’s operations are significantly affected by the market price of gold, copper, silver, lead, and zinc. The prices of gold, copper, silver, lead, and zinc are affected by numerous factors beyond the Company’s control.
Divestiture of Non-core Assets
Based on a comprehensive review of the Company’s portfolio of assets following the Newcrest acquisition, the Company’s Board of Directors approved a portfolio optimization program to divest six non-core assets and a development project in February 2024. The non-core assets to be divested include Akyem, CC&V, Éléonore, Porcupine, Musselwhite, Telfer, and the Coffee development project in Canada. In February 2024, the Company concluded that these non-core assets and the development project, met the accounting requirements to be presented as held for sale in the first quarter of 2024, based on progress made through the Company's active sales program and management’s expectation that the sale is probable and will be completed within 12 months.
The Company entered into definitive agreements in the second half of 2024 to sell the Telfer, Akyem, Musselwhite, Éléonore, and CC&V reportable segments, of which Telfer closed in 2024. Additionally, in January 2025 the Company entered into a definitive agreement to sell the Porcupine reportable segment. Refer to Note 3 for further information on divestitures.
Newcrest Transaction
On November 6, 2023, the Company completed its business combination transaction with Newcrest Mining Limited, a public Australian mining company limited by shares ("Newcrest"), whereby Newmont, through Newmont Overseas Holdings Pty Ltd, an Australian proprietary company limited by shares (“Newmont Sub”), acquired all of the ordinary shares of Newcrest in a fully stock transaction for total non-cash consideration of $13,549. Newcrest became a direct wholly owned subsidiary of Newmont Sub and an indirect wholly owned subsidiary of Newmont (such acquisition, the “Newcrest transaction”). The combined company continues to be traded on the New York Stock Exchange under the ticker NEM. The combined company is also listed on the Toronto Stock Exchange under the ticker NGT, on the Australian Securities Exchange under the ticker NEM, and on the Papua New Guinea Securities Exchange under the ticker NEM. Refer to Note 3 for further information.
Noncontrolling Interests
Merian
Newmont has a 75% economic interest in Suriname Gold project C.V. (“Merian”), with the remaining interests held by Staatsolie Maatschappij Suriname N.V. (“Staatsolie”), a company wholly owned by the Republic of Suriname. Newmont consolidates Merian, through its wholly-owned subsidiary, Newmont Suriname LLC., in its Consolidated Financial Statements as the primary beneficiary of Merian, which is a variable interest entity. For the years ended December 31, 2024, 2023, and 2022, the Company recognized income of $33, $27, and $59, respectively, within Net loss (income) attributable to noncontrolling interests related to Merian.
Yanacocha
At December 31, 2021, Newmont held a 51.35% ownership interest in Minera Yanacocha S.R.L ("Yanacocha") and consolidated Yanacocha in its Consolidated Financial Statements under the voting interest model. In 2022, the Company acquired the 5% ownership interest held in Yanacocha by Sumitomo Corporation (“Sumitomo”) in exchange for cash consideration of $48. Additionally in 2022, the Company acquired the remaining 43.65% interest in Yanacocha held by Compañia de Minas Buenaventura S.A.A. (“Buenaventura”), resulting in the Company holding 100% ownership interest in Yanacocha. The Company acquired Buenaventura’s 43.65% noncontrolling interest in Yanacocha (the “Yanacocha Transaction”) for $300 cash consideration, certain royalties on any production from other future potential projects, and contingent payments of up to $100 tied to higher metal prices, achieving commercial production at the Yanacocha Sulfides project and resolution on the outstanding Yanacocha tax dispute. The Yanacocha Transaction was accounted for as an equity transaction, resulting in a decrease to additional paid-in-capital and no gain or loss recognition.
Concurrent with the Yanacocha Transaction, the Company sold its 46.94% ownership interest in Minera La Zanja S.R.L. ("La Zanja"), accounted for as an equity method investment with a carrying value of $— as of December 31, 2021. Per the terms of the sale, the Company sold its interest in La Zanja to Buenaventura, the parent company of La Zanja, in exchange for royalties on potential future production from the La Zanja operation and contributed cash of $45 to be used exclusively for reclamation costs at the La Zanja operation. Upon close of the sale in 2022, the Company recognized a $45 loss on sale of its equity interest, included in Other income (loss), net.
NEWMONT CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(dollars in millions, except per share, per ounce and per pound amounts)
For the year ended December 31, 2022, the Company recognized $(1) of Net loss (income) attributable to noncontrolling interests related to Yanacocha. No Net loss (income) attributable to noncontrolling interests related to Yanacocha was recognized for the years ended December 31, 2024 and 2023, as the Company held 100% ownership interest in Yanacocha.
Discontinued Operations
Net income (loss) from discontinued operations included results related to the Batu Hijau and Elang contingent consideration assets obtained in connection with the sale of PT Newmont Nusa Tenggara in 2016. In the third quarter of 2024, the Company completed the sale of the Batu and Elang contingent consideration assets for cash consideration of $153, resulting in a gain of $15 included in Net income (loss) from discontinued operations.
For the years ended December 31, 2024, 2023, and 2022, the Company recorded income of $68, $27, and $30, net of a tax benefit (expense) of $31, $(5) and $(4), respectively, within Net income (loss) from discontinued operations. The Company received $45, $9 and $22 for the years ended December 31, 2024, 2023 and 2022, respectively, related to discontinued operations. Refer to contingent consideration assets in Note 14 for additional information.
NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Risks and Uncertainties
As a global mining company, the Company’s revenue, profitability, and future rate of growth are substantially dependent on prevailing metal prices, primarily for gold, but also for copper, silver, lead, and zinc. Historically, the commodity markets have been very volatile, and there can be no assurance that commodity prices will not be subject to wide fluctuations in the future. A substantial or extended decline in commodity prices could have a material adverse effect on the Company’s financial position, results of operations, cash flows, access to capital and on the quantities of reserves that the Company can economically produce. The carrying value of the Company’s Property, plant and mine development, net; Inventories; Stockpiles and ore on leach pads; Investments; certain Derivative assets; Deferred income tax assets; and Goodwill are particularly sensitive to the outlook for commodity prices. A decline in the Company’s price outlook from current levels could result in material impairment charges related to these assets.
The Company's global operations expose it to risks associated with public health crises, geopolitical and macroeconomic pressures, including but not limited to inflationary conditions, as well as the effects of certain countermeasures taken by central banks, supply chain disruptions resulting from global conflicts and other global events, and an uncertain and evolving labor market.
The following factors could have further potential short- and, possibly, long-term material adverse impacts on the Company including, but not limited to, volatility in commodity prices and the prices for gold and other metals, changes in the equity and debt markets or country specific factors adversely impacting discount rates, significant cost inflation impacts on production, capital and asset retirement costs, logistical challenges, workforce interruptions and financial market disruptions, energy market disruptions, as well as potential impacts to estimated costs and timing of projects. Refer to Note 7 for further information on certain impairment charges incurred as a result of these challenging conditions.
As further response to the current market conditions, high inflation rates, the rising prices for commodities and raw materials, prolonged supply chain disruptions, competitive labor markets, and consideration of capital allocation, the Company has chosen to continue deferring the investment decision for the Yanacocha Sulfides project. While the Company has extended the timeline of the full-funds decision, assessment of the project remains a priority in Peru as the Company continued to advance engineering and long-term procurement activities. The delay of the Yanacocha Sulfides project is intended to focus funds on current operations and other capital commitments while management assesses execution and project options, up to and including transitioning Yanacocha operations into full closure. To the extent that assessment determines that the project is no longer sufficiently profitable or economically feasible under the Company’s internal requirements, it would result in negative modifications to the Company's proven and probable reserves. Additionally, should the Company ultimately decide to forgo the development of Yanacocha Sulfides, the current carrying value of the assets under construction and other long-lived assets of the Yanacocha operations could become impaired and the timing of certain closure activities would be accelerated. As of December 31, 2024, the Yanacocha operations have total long-lived assets of approximately $1,195, inclusive of approximately $827 of assets under construction related to Yanacocha Sulfides.
Furthermore, the Company continues to hold the Conga project in Peru, which the Company does not currently anticipate developing in the next ten years as the Company continues to assess Yanacocha Sulfides; accordingly, the Conga project remains in care and maintenance. Should the Company be unable to develop the Conga project or conclude that future development is not in the best interest of the business, the Company may consider other alternatives for the project, which may result in a future impairment charge for the remaining assets. The total assets at Conga were $892 and $895 at December 31, 2024 and 2023.
The Company's global operations also expose it to foreign currency exchange rates which can increase or decrease profits to the extent costs are paid in foreign currencies, including the Australian dollar, the Mexican peso, the Canadian dollar, the Argentine peso, the Peruvian sol, the Surinamese dollar, the Ghanaian cedi, and the Papua New Guinean kina. Certain mines are located in hyperinflationary economies, which included the Ahafo, Akyem, Cerro Negro, and Merian mines at December 31, 2024. The majority of the activity at these mines has historically been denominated in USD; as a result, the devaluation of the related currency has resulted in
NEWMONT CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(dollars in millions, except per share, per ounce and per pound amounts)
an immaterial impact on the Company's financial statements. Therefore, future devaluation of these currencies is not expected to have a material impact on the Company's financial statements.
The Cerro Negro mine, located in Argentina, is a USD functional currency entity. Argentina’s central bank has enacted a number of foreign currency controls in an effort to stabilize the local currency, including requiring the Company to convert USD proceeds from metal sales to local currency and restricting payments to foreign-related entities denominated in foreign currency, such as dividends or distributions to the parent and related companies. The Company continues to monitor the foreign currency exposure risk and the limitations of repatriating cash to the United States. Currently, these currency controls are not expected to impact the Company's ability to repay its debt obligations or declare dividends.
Use of Estimates
The Company’s Consolidated Financial Statements have been prepared in accordance with GAAP. The preparation of the Company’s Consolidated Financial Statements requires the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities and the related disclosure of contingent assets and liabilities at the date of the Consolidated Financial Statements and the reported amounts of revenues and expenses during the reporting period. The Company must make these estimates and assumptions because certain information used is dependent on future events, cannot be calculated with a high degree of precision from data available or simply cannot be readily calculated based on generally accepted methodologies. Actual results could differ from these estimates.
The more significant areas requiring the use of management estimates and assumptions relate to mineral reserves that are the basis for future cash flow estimates utilized in impairment calculations and units-of-production amortization calculations; environmental remediation, reclamation and closure obligations; estimates of recoverable gold and other minerals in stockpile and leach pad inventories; estimates of fair value for certain reporting units and asset impairments (including impairments of long-lived assets, goodwill and investments); write-downs of inventory, stockpiles and ore on leach pads to net realizable value; post-employment, post-retirement and other employee benefit liabilities; valuation allowances for deferred tax assets; provisional amounts related to income tax effects of newly enacted tax laws; provisional amounts related to uncertain tax positions; valuation of assets acquired and liabilities assumed in a business combination; valuation of assets held for sale; reserves for contingencies and litigation; and the fair value and accounting treatment of financial instruments including marketable and other equity securities and derivative instruments. The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances. Accordingly, actual results will differ from those amounts estimated in these financial statements.
Principles of Consolidation
The Consolidated Financial Statements include the accounts of Newmont Corporation, more-than-50%-owned subsidiaries that it controls and variable interest entities where it is the primary beneficiary. The proportionate consolidation method is used for investments in which the Company has an undivided interest in the assets, liabilities and operations and for certain unincorporated joint ventures in the extractive industry. All significant intercompany balances and transactions have been eliminated. Equity method accounting is applied for certain entities where the Company does not have control, but does have significant influence over the activities that most significantly impact the entities’ operations and financial performance. The functional currency for the majority of the Company’s operations is the U.S. dollar.
The Company follows the ASC guidance for identification and reporting of entities over which control is achieved through means other than voting rights. The guidance defines such entities as Variable Interest Entities.
Business Combination and Asset Acquisition Accounting
The Company applies a screen test to evaluate if substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or group of similar identifiable assets to determine whether a transaction should be accounted for as an asset acquisition or business combination.
When an acquisition does not meet the definition of a business combination because either: (i) substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset, or group of similar identified assets, or (ii) the acquired entity does not have an input and a substantive process that together significantly contribute to the ability to create outputs, the Company accounts for the acquisition as an asset acquisition. In an asset acquisition, goodwill is not recognized, but rather, any excess purchase consideration over the fair value of the net assets acquired is allocated on a relative fair value basis to the identifiable net assets as of the acquisition date and any direct acquisition-related transaction costs are capitalized as part of the purchase consideration.
When an acquisition is accounted for as a business combination, the Company recognizes and measures the assets acquired and liabilities assumed 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 in excess of the aggregate fair value of the net tangible and intangible assets acquired, if any, is recorded as goodwill. For material acquisitions, the Company engages 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
NEWMONT CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(dollars in millions, except per share, per ounce and per pound amounts)
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 discrete financial forecasts, long-term growth rates, appropriate discount rates, and expected future capital requirements. The market valuation method uses prices paid for a similar asset by other purchasers in the market, normalized for any differences between the assets. 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. During the measurement period, not to exceed one year from the date of acquisition, the Company may record adjustments to the assets acquired and liabilities assumed, with a corresponding offset to goodwill if new information is obtained related to facts and circumstances that existed as of the acquisition date. After the measurement period, any subsequent adjustments are reflected in the period the adjustment arises.
Assets Held for Sale
We classify long-lived assets, or disposal groups comprising of assets and liabilities, as held for sale in the period in which the following six criteria are met, (i) management, having the authority to approve the action, commits to a plan to sell the property; (ii) the property is available for immediate sale in its present condition, subject only to terms that are usual and customary; (iii) an active program to locate a buyer and other actions required to complete the plan to sell have been initiated; (iv) the sale of the property is probable and is expected to be completed within one year; (v) the property is being actively marketed for sale at a price that is reasonable in relation to its current fair value; and (vi) actions necessary to complete the plan of sale indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn.
The Company ceases depreciation and amortization on long-lived assets (or disposal groups) classified as held for sale, and measures them at the lower of carrying value or estimated fair value less cost to sell.
In determining the fair value of the assets less costs to sell, the Company considers factors including current sales prices for comparable assets, discounted cash flow projections, third party valuations and indicative offer information, if applicable. The Company’s assumptions about fair value require significant judgment because the current market is sensitive to changes in economic conditions, as well as asset-specific considerations. The Company estimates the fair value of assets held for sale based on current market conditions and assumptions made by management, which may differ from actual results and could result in future impairments if market conditions deteriorate.
An impairment loss on the initial classification and subsequent measurement of an asset held for sale is recognized as an expense. Any subsequent increase in fair value less costs to sell (not exceeding the accumulated impairment loss that has been previously recognized) is recognized as a reversal of expense. The Company continues to evaluate the fair value of assets held for sale and monitors market conditions and other economic factors, which could result in additional impairments in the future.
Cash, Cash Equivalents and Restricted Cash
Cash and cash equivalents consist of all cash balances and highly liquid investments with an original maturity of three months or less. Because of the short maturity of these investments, the carrying amounts approximate their fair value. Cash and cash equivalents are held in overnight bank deposits or are invested in United States Treasury securities and money market securities. Restricted cash is excluded from cash and cash equivalents and is included in other current or non-current assets. Restricted cash is held primarily for the purpose of settling asset retirement obligations.
Stockpiles, Ore on Leach Pads and Inventories
As described below, costs that are incurred in or benefit the productive process are accumulated as stockpiles, ore on leach pads and inventories. Stockpiles, ore on leach pads and inventories are carried at the lower of average cost or net realizable value. Net realizable value represents the estimated future sales price of the product based on current and long-term metals prices, less the estimated costs to complete production and bring the product to sale. Write-downs of stockpiles, ore on leach pads and inventories to net realizable value are reported as a component of Costs applicable to sales and Depreciation and amortization. The current portion of stockpiles, ore on leach pads and inventories is determined based on the expected amounts to be processed within the next 12 months and utilize the short-term metal price assumption in estimating net realizable value. Stockpiles, ore on leach pads and inventories not expected to be processed within the next 12 months are classified as non-current and utilize the long-term metal price assumption in estimating net realizable value. The major classifications are as follows:
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. The Company generally processes the highest ore grade material first to maximize metal production; however, a blend of metal 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 incurred including applicable overhead and
NEWMONT CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(dollars in millions, except per share, per ounce and per pound amounts)
depreciation and amortization relating to mining operations and removed at each stockpile’s average cost per recoverable unit as material is processed. Carrying values are evaluated at least quarterly, in accordance with the above.
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 silver or extract the 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 or pounds 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, the Company’s operating results have not been materially impacted by variations between the estimated and actual recoverable quantities of metal on its 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.
In-process Inventory
In-process inventories represent material that is currently in the process of being converted to a saleable product. Conversion processes vary depending on the nature of the ore and the specific processing facility, but include mill in-circuit, flotation, leach and carbon-in-leach. In-process material is measured based on assays of the material fed into the process and the projected recoveries of the respective processing plants. In-process inventories are valued at the lower of the average cost of the material fed into the process attributable to the source material coming from the mines, stockpiles and/or leach pads, plus the in-process conversion costs, including applicable amortization relating to the process facilities incurred to that point in the process or net realizable value.
Precious Metals Inventory
Precious metals inventories include gold doré and/or gold bullion. Precious metals that result from the Company’s mining and processing activities are valued at the lower of the average cost of the respective in-process inventories incurred prior to the refining process, plus applicable refining costs or net realizable value.
Concentrate Inventory
Concentrate inventories represent gold, silver, lead, zinc and copper concentrate available for shipment or in transit for further processing when the sales process has not been completed. The Company values concentrate inventory at average cost, including an allocable portion of support costs and amortization. Costs are added and removed to the concentrate inventory based on metal in the concentrate and are valued at the lower of average cost or net realizable value.
Materials and Supplies
Materials and supplies are valued at the lower of average cost or net realizable value. Cost includes applicable taxes and freight.
Property, Plant and Mine Development
Facilities and Equipment
Expenditures for new facilities or equipment and expenditures that extend the useful lives of existing facilities or equipment are capitalized and recorded at cost. 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 capitalized costs over the estimated productive lives of such facilities. These estimated productive lives do not exceed the related estimated mine lives, which are based on proven and probable reserves.
Mine Development
Mine development costs include engineering and metallurgical studies, drilling and other related costs to delineate an ore body, the removal of overburden to initially expose an ore body at open pit surface mines and the building of access ways, shafts, lateral access, drifts, ramps and other infrastructure at underground mines. Costs incurred before mineralization is classified as proven and probable reserves are expensed and classified as Exploration or Advanced projects, research and development expense.
NEWMONT CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(dollars in millions, except per share, per ounce and per pound amounts)
Capitalization of mine development project costs that meet the definition of an asset begins once mineralization is classified as proven and probable reserves.
Drilling and related costs are capitalized for an ore body where proven and probable reserves exist and the activities are directed at obtaining additional information on the ore body or converting measured, indicated and inferred resources to proven and probable reserves. All other drilling and related costs are expensed as incurred. Drilling costs incurred during the production phase for operational ore control are allocated to inventory costs and then included as a component of Costs applicable to sales.
The cost of removing overburden and waste materials to access the ore body at an open pit mine prior to the production phase are referred to as “pre-stripping costs.” Pre-stripping costs are capitalized during the development of an open pit mine. Where multiple open pits exist at a mining complex utilizing common processing facilities, pre-stripping costs are capitalized at each pit. The removal, production, and sale of de minimis saleable materials may occur during the development phase of an open pit mine and are assigned incremental mining costs related to the removal of that material.
The production phase of an open pit mine commences when saleable minerals, beyond a de minimis amount, are produced. Stripping costs incurred during the production phase of a mine are variable production costs that are included as a component of inventory to be recognized in Costs applicable to sales in the same period as the revenue from the sale of inventory.
Mine development costs are amortized using the units-of-production method based on estimated recoverable ounces or pounds in proven and probable reserves. To the extent that these costs benefit an entire ore body, they are amortized over the estimated life of the ore body. Costs incurred to access specific ore blocks or areas that only provide benefit over the life of that area are amortized over the estimated life of that specific ore block or area.
Underground development costs incurred before mineralization is classified as proven and probable reserves are expensed and classified as Exploration or Advanced projects, research and development expense. Capitalization of mine development project costs that meet the definition of an asset begins once mineralization is classified as proven and probable reserves.
Mineral Interests
Mineral interests include acquired interests in production, development and exploration stage properties. Mineral interests are capitalized at their fair value at the acquisition date, either as an individual asset purchase or as part of a business combination. Mineral interests in the development and exploration stage are not amortized until the underlying property is converted to the production stage, at which point the mineral interests are amortized over the estimated recoverable proven and probable reserves.
The value of such assets is primarily driven by the nature and amount of mineral interests believed to be contained in such properties. Production stage mineral interests represent interests in operating properties that contain proven and probable reserves and are amortized using the units-of-production method based on the estimated recoverable ounces or pounds in proven and probable reserves. Development stage mineral interests represent interests in properties under development that contain proven and probable reserves. Exploration stage mineral interests represent interests in properties that are believed to potentially contain mineral resources consisting of (i) mineral resources within pits; mineral resources with insufficient drill spacing to qualify as proven and probable reserves; and mineral resources in close proximity to proven and probable reserves; (ii) around-mine exploration potential not immediately adjacent to existing reserves and mineralization, but located within the immediate mine area; (iii) other mine-related exploration potential that is not part of current resources and is comprised mainly of material outside of the immediate mine area; (iv) greenfield exploration potential that is not associated with any other production, development or exploration stage property, as described above; or (v) any acquired right to explore or extract a potential mineral deposit. The Company’s mineral rights generally are enforceable regardless of whether proven and probable reserves have been established. In certain limited situations, the nature of a mineral right changes from an exploration right to a mining right upon the establishment of proven and probable reserves. The Company has the ability and intent to renew mineral interests where the existing term is not sufficient to recover all identified and valued proven and probable reserves and/or undeveloped mineral resources.
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 as of December 31 and when events or changes in circumstances indicate that the carrying value of a reporting unit exceeds its fair value. Each operating mine is considered a distinct reporting unit for purposes of goodwill impairment testing.
The Company may elect to perform a qualitative assessment when it is more likely than not that the fair value of a reporting unit is higher than its carrying value. If the Company determines that it is more likely than not that the fair value is less than the carrying value, a quantitative goodwill impairment test is performed to determine the fair value of the reporting unit. The fair value of a reporting unit is determined using either the income approach utilizing estimates of discounted future cash flows or the market approach utilizing recent transaction activity for comparable properties. These approaches are considered Level 3 fair value measurements. 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. The Company recognizes its pro rata share of goodwill and any subsequent goodwill impairment losses recorded by entities that are proportionately consolidated.
NEWMONT CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(dollars in millions, except per share, per ounce and per pound amounts)
The estimated cash flows used to assess the fair value of a reporting unit are derived from the Company’s current business plans, which are developed using short-term price forecasts reflective of the current price environment and management’s 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; capital investments; proven and probable mineral reserves estimates, including the timing and cost to develop and produce the reserves; value beyond proven and probable mineral reserve estimates; estimated future closure costs; the use of appropriate discount rates; and applicable U.S. dollar long-term exchange rates.
Impairment of Long-lived Assets
The Company reviews and evaluates its 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.
The estimated undiscounted cash flows used to assess recoverability of long-lived assets and to measure the fair value of the Company’s mining operations are derived from current business plans, which are developed using short-term price forecasts reflective of the current price environment and management’s 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 reserve estimates, including the timing and cost to develop and produce the reserves; value beyond proven and probable mineral reserve estimates; estimated future closure costs; and the use of appropriate discount rates.
In estimating undiscounted cash flows, assets are grouped at the lowest level for which there are identifiable cash flows that are largely independent of undiscounted cash flows from other asset groups. The Company’s estimates of undiscounted cash flows are based on numerous assumptions and it is possible that actual cash flows may differ significantly from estimates, as actual produced reserves, metal prices, commodity-based and other costs, and closure costs are each subject to significant risks and uncertainties.
Investments
Time Deposits
Time deposits with an original maturity of more than three months but less than one year are included within Investments. These time deposits are carried at amortized cost. Accrued interest is recorded in Other income (loss), net.
Equity Method Investments
Management classifies investments at the acquisition date and re-evaluates the classification at each balance sheet date and when events or changes in circumstances indicate that there is a change in the Company’s ability to exercise significant influence. The ability to exercise significant influence is typically presumed when the Company possesses 20% or more of the voting interests in the investee. The Company accounts for its investments in stock of other entities over which the Company has significant influence, but not control, using the equity method of accounting. Under the equity method of accounting, the Company increases its investment for contributions made and records its proportionate share of net earnings, declared dividends and partnership distributions based on the most recently available financial statements of the investee. To the extent that there is a basis difference between the amount invested and the underlying equity in the net assets of an equity investment, the Company allocates such differences between tangible and intangible assets. This basis difference is being amortized into Equity income (loss) of affiliates over the remaining estimated useful lives of the underlying tangible and intangible net assets. The Company from time to time will elect the fair value option to account for its equity method investments if the fair value option better reflects the economics of its investment. Equity method investments accounted for under the fair value option are remeasured periodically with any changes in fair value recorded in Other income (loss), net. Equity method investments are included in Investments.
Contributions made to equity method investees at times are in the form of loan agreements. Loans provided to equity method investees that are made based on the Company's proportionate ownership percentage are accounted for as “in-substance capital contributions” and are treated as an increase to the investment. Principal and interest payments received on loans treated as in-substance capital contributions are assessed under the cumulative earnings approach to determine if the distribution received represents a return on capital or a return of capital. Return on capital distributions are recorded as an operating cash flow whereas return of capital distributions are recorded as an investing cash flow. Loans provided to equity method investees that are not made on a proportionate basis are accounted for as a loan receivable and do not increase the investment. Principal payments received on loans not treated as an in-substance capital contribution are accounted for as a reduction to the loan receivable and interest received is recorded as interest income.
The Company evaluates its equity method investments for potential impairment whenever events or changes in circumstances indicate that there is an other-than-temporary decline in the value of the investment. Declines in fair value that are deemed to be other-than-temporary are charged to Other income (loss), net.
NEWMONT CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(dollars in millions, except per share, per ounce and per pound amounts)
Marketable Equity, Debt, and Other Equity Securities
The Company has certain marketable equity and debt securities and other equity securities. Marketable equity securities are measured primarily at fair value with any changes in fair value recorded in Other income (loss), net. Certain other equity securities are accounted for under the measurement alternative (cost less impairment, adjusted for any qualifying observable price changes) when fair value is not readily determinable. The Company accounts for its restricted marketable debt securities as available-for-sale securities. Unrealized gains and losses on available-for-sale investments, net of taxes, are reported as a component of Accumulated other comprehensive income (loss) in Total equity, unless an impairment is deemed to be credit-related. Credit-related impairment is recognized as an allowance for credit losses on the balance sheet with a corresponding charge to Other income (loss), net.
Derivative Instruments
The Company holds derivatives for risk management purposes rather than for trading. The Company uses derivatives to mitigate uncertainty and volatility caused by underlying exposures to foreign exchange rates and energy prices. The fair values of all derivative instruments are recognized as assets or liabilities at the balance sheet date and are reported gross.
Financial instruments that meet the definition of a derivative, but are not designated for hedge accounting under ASC 815, are accounted for at fair value using derivative pricing models. Valuation models require a variety of inputs, including long term metal prices, life of mine production profiles, discount rates, and inflation assumptions. These instruments are subsequently remeasured to their fair value at each reporting date with the resulting gain or loss recognized in the Consolidated Statement of Operations.
Cash Flow Hedges
The fair value of derivative contracts qualifying as cash flow hedges are reflected as assets or liabilities in the Consolidated Balance Sheets. The changes in fair value of these hedges are deferred in Accumulated other comprehensive income (loss). Amounts deferred in Accumulated other comprehensive income (loss) are reclassified to income when the hedged transaction has occurred in the same income statement line where the earnings effect of the hedged item is presented. Cash transactions related to the Company’s derivative contracts accounted for as hedges are classified in the same category as the item being hedged in the Consolidated Statements of Cash Flows.
When derivative contracts qualifying as cash flow hedges are settled, accelerated or restructured before the maturity date of the contracts, the related amount in Accumulated other comprehensive income (loss) at the settlement date is deferred and reclassified to earnings, when the originally designated hedged transaction impacts earnings and is presented in the same income statement line item as the earnings effect of the hedged item, unless the underlying hedge transaction becomes probable of not occurring, at which time related amounts in Accumulated other comprehensive income (loss) are reclassified to earnings immediately.
Debt
The Company carries its Senior Notes at amortized cost.
Debt issuance costs and debt premiums and discounts, which are included in Debt, are amortized using the effective interest method over the terms of the respective Senior Notes as a component of Interest expense, net of capitalized interest within the Consolidated Statements of Operations.
Gain or loss on extinguishment of debt is recorded as a component of Other income (loss), net upon the extinguishment of a debt instrument and is calculated as the difference between the reacquisition price and net carrying amount of the debt, which includes unamortized debt issuance costs. The Company evaluates all changes to its debt arrangements to determine whether the changes represent a modification or extinguishment to the old debt arrangement. If a debt instrument is deemed to be modified, the Company capitalizes all new lender fees and expenses all third-party fees. If it is determined that an extinguishment of one of the Company's debt instruments has occurred, the unamortized financing fees associated with the extinguished instrument are expensed. For the revolving loans, all lender and third-party fees are capitalized, and in the event an amendment reduces the committed capacity under the revolving loans, the Company will expense a portion of any unamortized fees on a pro-rata basis in proportion to the decrease in the committed capacity.
Leases
The Company determines if a contractual arrangement represents or contains a lease at inception. Operating leases are included in Other non-current assets and Other current and non-current liabilities in the Consolidated Balance Sheets. Finance leases are included in Property, plant and mine development, net and current and non-current Lease and other financing obligations in the Consolidated Balance Sheets.
Operating and finance lease right-of-use ("ROU") assets and lease liabilities are recognized at the lease commencement date based on the present value of the future lease payments over the lease term. Leases acquired in a business combination are also measured based on the present value of the remaining leases payments, as if the acquired lease were a new lease at the acquisition date. When the rate implicit to the lease cannot be readily determined, the Company utilizes its incremental borrowing rate in
NEWMONT CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(dollars in millions, except per share, per ounce and per pound amounts)
determining the present value of the future lease payments. The incremental borrowing rate is derived from information available at the lease commencement date and represents the rate of interest that the Company would have to pay to borrow on a collateralized basis over a similar term and amount equal to the lease payments in a similar economic environment. The ROU asset includes any lease payments made and lease incentives received prior to the commencement date. Operating lease ROU assets also include any cumulative prepaid or accrued rent when the lease payments are uneven throughout the lease term. The ROU assets and lease liabilities may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option.
The Company has lease arrangements that include both lease and non-lease components. The Company accounts for each separate lease component and its associated non-lease components as a single lease component for the majority of its asset classes. Additionally, for certain lease arrangements that involve leases of similar assets, the Company applies a portfolio approach to effectively account for the underlying ROU assets and lease liabilities.
Common Stock
Newmont filed a shelf registration statement on Form S-3 under which it can 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, the Company's certification of incorporation and bylaws. It also includes the ability to resell an indeterminate amount of common stock, preferred stock and debt securities from time to time upon exercise of warrants or conversion of convertible securities.
Treasury Stock
The Company records repurchases of common shares as Treasury stock at cost and records any subsequent retirements of treasury shares at cost. When treasury shares are retired, the Company’s policy is to allocate the excess of the repurchase price over the par value of shares acquired to both Retained earnings and Additional paid-in capital using settlement-date accounting. The portion allocated to Additional paid-in capital is calculated on a pro rata basis of the shares to be retired and the total shares issued and outstanding as of the date of the retirement.
During the years ended December 31, 2024, the Company repurchased and retired approximately 26 million shares of its common stock for $1,246. No repurchases occurred during the years ended December 31, 2023 and 2022. During the years ended December 31, 2024, 2023 and 2022, the Company withheld 0.4 million, 0.6 million and 0.6 million shares, respectively, for payments of employee withholding taxes related to the vesting of stock awards.
Revenue Recognition
Newmont generates revenue by selling gold, copper, silver, lead, and zinc produced from its mining operations. Refer to Note 4 for further information regarding the Company’s operating segments.
The majority of the Company’s Sales come from the sale of refined gold; however, the end product at the Company’s gold operations is generally doré bars. Doré is an alloy consisting primarily of gold but also containing silver and other metals. Doré is sent to refiners to produce bullion that meets the required market standard of 99.95% gold. Under the terms of the Company’s refining agreements, the doré bars are refined for a fee, and the Company’s share of the refined gold and the separately-recovered silver is credited to its bullion account. Gold from doré bars credited to its bullion account is typically sold to banks or refiners.
A portion of gold sold from certain sites is sold in the form of concentrate. The Company’s Sales also come from the sale of copper, silver, lead, and zinc. Sales from these metals are generally in the form of concentrate, which is sold to smelters for further treatment and refining.
Generally, if a metal expected to be mined represents more than 10% to 20% of the life of mine sales value of all the metal expected to be mined, co-product accounting is applied. When the Company applies co-product accounting at an operation, revenue is recognized for each co-product metal sold, and shared costs applicable to sales are allocated based on the relative sales values of the co-product metals produced. Generally, if metal expected to be mined is less than the 10% to 20% of the life of mine sales value, by-product accounting is applied. Revenues from by-product sales, which are immaterial, are credited to Costs applicable to sales as a by-product credit. Silver, lead and zinc are produced as co-products at Peñasquito. Copper is produced as a co-product at Red Chris, Boddington, Cadia, and Telfer. Aside from the co-product sales at Red Chris, Peñasquito, Boddington, Cadia, and Telfer, copper and silver produced at other Newmont sites are by-product metals.
Gold Sales from Doré Production
The Company recognizes revenue for gold from doré production when it satisfies the performance obligation of transferring gold inventory to the customer, which generally occurs upon transfer of gold bullion credits as this is the point at which the customer obtains control the ability to direct the use and obtains substantially all of the remaining benefits of ownership of the asset.
NEWMONT CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(dollars in millions, except per share, per ounce and per pound amounts)
The Company generally recognizes the sale of gold bullion credits when the credits are delivered to the customer. The transaction price is determined based on the agreed upon market price and the number of ounces delivered. Payment is due upon delivery of gold bullion credits to the customer’s account.
Sales from Concentrate Production
The Company recognizes revenue for gold, copper, silver, lead, and zinc from concentrate production, net of treatment and refining charges, when it satisfies the performance obligation of transferring control of the concentrate to the customer. This generally occurs as material passes over the vessel's rail at the port of loading based on the date from the bill of lading, as the customer has the ability to direct the use of and obtain substantially all of the remaining benefits from the material and the customer has the risk of loss. Newmont has elected to account for shipping and handling costs for concentrate contracts as fulfillment activities and not as promised goods or services; therefore these activities are not considered separate performance obligations.
The Company generally sells metal concentrate based on the monthly average market price for a future month, dependent on the relevant contract, following the month in which the delivery to the customer takes place. The amount of revenue recognized for concentrates is initially recorded on a provisional basis based on the forward prices for the estimated month of settlement and the Company’s estimated metal quantities based on assay data. The Company’s sales based on a provisional price contain an embedded derivative that is required to be separated from the host contract for accounting purposes. The host contract is the receivable from the sale of the concentrates at the forward price at the time of sale. The embedded derivative, which is not designated for hedge accounting, is primarily marked to market through Sales each period prior to final settlement. The Company also adjusts estimated metal quantities used in computing provisional sales using new information and assay data from the smelter as it is received (if any).
A provisional payment is generally due upon delivery of the concentrate to the customer. Final payment is due upon final settlement of price and quantity with the customer.
The principal risks associated with recognition of sales on a provisional basis include metal price fluctuations and updated quantities between the date the sale is recorded and the date of final settlement. If a significant decline in metal prices occurs, or assay data results in a significant change in quantity between the provisional pricing date and the final settlement date, it is reasonably possible that the Company could be required to return a portion of the provisional payment received on the sale. Refer to Note 5 for additional information.
Income and Mining Taxes
The Company accounts for income taxes using the liability method, recognizing certain temporary differences between the financial reporting basis of the Company’s 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 the Company, as measured by the statutory tax rates in effect. The Company derives its 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. The Company determines if the assessment of a particular income tax effect is “complete.” Those effects for which the accounting is determined to be complete are reported in the enactment period financial statements. The Company has exposure to the impact of foreign exchange fluctuations on tax positions in certain jurisdictions, such movements are recorded within Income and mining tax benefit (expense) related to deferred income tax assets and liabilities, as well as non-current uncertain tax positions, while foreign exchange fluctuations impacting current tax positions are recorded within Other income (loss), net as foreign currency exchange gains (losses). With respect to the earnings that the Company derives from the operations of its 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 these consolidated companies.
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.
Newmont’s 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. Newmont and its subsidiaries are subject to reviews of its income tax filings and other tax payments, and disputes can arise with the taxing authorities over the interpretation of its contracts or laws. The Company recognizes potential liabilities and records tax liabilities for anticipated tax audit issues in the U.S. and other tax jurisdictions based on its estimate of whether it is more likely than not, and the extent to which, additional taxes will be due. The Company adjusts 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 the Company’s current estimate of the tax liabilities. If the Company’s 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. The Company recognizes interest and penalties, if any, related to unrecognized tax benefits in Income and mining tax benefit (expense). In certain jurisdictions, Newmont 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 Newmont believes the amount is collectible.
NEWMONT CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(dollars in millions, except per share, per ounce and per pound amounts)
Valuation of Deferred Tax Assets
The Company’s deferred income tax assets include certain future tax benefits. The Company records a valuation allowance against any portion of those deferred income tax assets when it believes, 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. The Company reviews the likelihood that it will realize the benefit of its 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. The Company looks to the nature and severity of cumulative pretax losses (if any) in the current three-year period ending on the evaluation date, recent pretax losses and/or expectations of future pretax losses. 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;
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The duration of statutory carry forward periods;
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Prudent and feasible tax planning strategies readily available that may alter the timing of reversal of the temporary difference;
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Nature of temporary differences and predictability of reversal patterns of existing temporary differences; and
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The sensitivity of future forecasted results to commodity prices and other factors.
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. The Company utilizes a rolling twelve quarters of pre-tax income or loss as a measure of its cumulative results in recent years. However, a cumulative three year loss is not solely determinative of the need for a valuation allowance. The Company also considers all other available positive and negative evidence in its analysis.
Reclamation and Remediation Costs
Reclamation obligations associated with operating and non-operating mine sites are recognized when an obligation is incurred and the estimated costs can be reasonably measured. Fair value is measured as the present value of expected cash flow estimates, after considering inflation, the Company's credit-adjusted risk-free rates and a market risk premium appropriate for the Company's operations. The liability is accreted over time through periodic charges to earnings. In addition, the asset retirement cost is capitalized as part of the asset’s carrying value and amortized over the life of the related asset. Reclamation costs 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. Changes in reclamation estimates at mines that are not currently operating, as the mine or portion of the mine site has entered the closure phase and has no substantive future economic value, are reflected in earnings in the period an estimate is revised. The estimated reclamation obligation is based on when spending for an existing disturbance is expected to occur. Costs included in estimated asset retirement obligations are discounted to their present value as cash flows are readily estimable over a period of up to fifty years. The Company reviews, on an annual basis, unless otherwise deemed necessary, the reclamation obligation at each mine site in accordance with ASC guidance for asset retirement obligations.
Remediation costs are accrued when it is probable that an obligation has been incurred and the cost can be reasonably estimated. Such cost estimates may include ongoing care, maintenance and monitoring costs. Changes in remediation estimates at operating and non-operating 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 over a period up to fifty years.
Foreign Currency
The functional currency for the majority of the Company’s operations is the U.S. dollar. Transaction gains and losses related to foreign currency denominated monetary assets and liabilities where the functional currency is the U.S. dollar are remeasured at current exchange rates and the resulting adjustments are included in Other income (loss), net. The financial statements of the Company's foreign entities with functional currencies other than the U.S. dollar are translated into U.S. dollars with the resulting adjustments charged or credited directly to Accumulated other comprehensive income (loss) in Total equity. All assets and liabilities are translated into the U.S. dollar using exchange rates in effect at the balance sheet date, while revenues and expenses are translated at the weighted average exchange rates for the period. The gains or losses on foreign currency rates on cash holdings in foreign currencies are included in Effect of exchange rate changes on cash, cash equivalents and restricted cash in the Company’s Consolidated Statements of Cash Flows.
NEWMONT CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(dollars in millions, except per share, per ounce and per pound amounts)
Stock-Based Compensation
The Company records stock-based compensation awards exchanged for employee services at fair value on the date of the grant and expenses the awards in the Consolidated Statements of Operations over the requisite employee service period. The fair value of RSUs are based on the Newmont stock price on the date of grant. The fair value of PSUs with market-related conditions is determined using a Monte Carlo simulation model. The fair value of PSUs with performance-related conditions is determined based on the Newmont stock price on the date of grant and the probability of the performance conditions being met. Stock-based compensation expense related to all awards, including awards with a market or performance condition that cliff vest, is generally recognized ratably over the requisite service period of the award on a straight-line basis. The Company recognizes forfeitures as they occur. The Company's estimates may be impacted by certain variables including, but not limited to, stock price volatility, employee retirement eligibility dates, the Company's performance and related tax impacts.
Net Income (Loss) per Common Share
Basic and diluted income (loss) per share are presented for Net income (loss) attributable to Newmont stockholders. Basic income (loss) per common share is computed by dividing income (loss) available to Newmont common stockholders by the weighted average number of common shares outstanding during the period. Diluted income (loss) per common share is computed similarly except that weighted average common shares is increased to reflect all dilutive instruments, including employee stock awards. Dilutive securities are excluded from the calculation of diluted weighted average common shares outstanding if their effect would be anti-dilutive based on the treasury stock method or due to a net loss from continuing operations.
Discontinued Operations
The Company reports the results of operations of a business as discontinued operations if a disposal represents a strategic shift that has (or will have) a major effect on the Company’s operations and financial results when the business is classified as held for sale, in accordance with ASC 360, Property, Plant and Equipment and ASC 205-20, Presentation of Financial Statements - Discontinued Operations. Under ASC 360, assets may be classified as held for sale even though discontinued operations classification is not met. Equity method investments, which are specifically scoped out of ASC 360, can only be classified as held for sale if discontinued operations classification is also achieved. The results of discontinued operations are reported in Net income (loss) from discontinued operations, net of tax in the accompanying Consolidated Statements of Operations for current and prior periods, including any gain or loss recognized on closing or adjustment of the carrying amount to fair value less cost to sell.
Comprehensive Income (Loss)
In addition to Net income (loss), Comprehensive income (loss) includes all changes in equity during a period, such as adjustments to minimum pension liabilities, foreign currency translation adjustments, changes in fair value of derivative instruments that qualify as cash flow hedges and cumulative unrecognized changes in fair value of marketable debt securities classified as available-for-sale, except those resulting from investments by and distributions to owners.
Care and Maintenance
The Company incurs certain direct operating costs and depreciation and amortization costs when operations are temporarily halted and placed in care and maintenance. Direct operating costs incurred while operations are temporarily placed in care and maintenance are included in Other expense, net as these costs do not benefit the productive process and are not related to sales. Depreciation and amortization costs incurred while operations are temporarily placed in care and maintenance are included in Depreciation and amortization.
Reclassifications
Certain amounts and disclosures in prior years have been reclassified to conform to the 2024 presentation.
Recently Adopted Accounting Pronouncements and Securities and Exchange Commission Rules
Segments Reporting
In November 2023, ASU 2023-07 was issued which improves disclosures about a public entity’s reportable segments and addresses requests from investors and other allocators of capital for additional, more detailed information about a reportable segment’s expenses. The ASU applies to all public entities that are required to report segment information in accordance with ASC 280. The Company adopted this standard as of January 1, 2024. The adoption did not have a material impact on the consolidated financial statements or disclosures.
Inflation Reduction Act
In August 2022, the U.S. government enacted the Inflation Reduction Act of 2022 (the "IRA") into law. The IRA introduced an excise tax on stock repurchases of 1% of the fair market value of stock repurchases net of stock issued during the tax year and a corporate alternative minimum tax (the "Corporate AMT") of 15% on the adjusted financial statement income ("AFSI") of corporations
NEWMONT CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(dollars in millions, except per share, per ounce and per pound amounts)
with average AFSI exceeding $1 billion over a three-year period. The excise tax on stock repurchases is effective on net stock repurchases made after December 31, 2022 and the Corporate AMT is effective for tax periods beginning in fiscal year 2023. While waiting on pending Department of Treasury regulatory guidance, the Company is continuing to monitor developments. Based upon information known to date, no material impacts are expected to the Consolidated Financial Statements, disclosures, or cash flows.
In 2024, Pillar II is set to take effect. The Pillar II agreement was signed by 138 countries with the intent to equalize corporate tax around the world by implementing a global minimum tax of 15%. As Newmont primarily does business in jurisdictions with a tax rate greater than 15%, the Company does not anticipate a material impact to the Consolidated Financial Statements.
Recently Issued Accounting Pronouncements and Securities and Exchange Commission Rules
Disaggregation of Income Statement Expenses
In November 2024, ASU 2024-03 was issued, requiring additional disclosures in the notes to the financial statements on the nature of certain expense captions presented on the face of the Consolidated Statement of Operations. The new guidance is effective for annual reporting periods beginning after December 15, 2026 and interim reporting periods beginning after December 15, 2027. The Company is currently evaluating the impacts of the guidance on its Consolidated Financial Statements.
SEC Climate Rule
In March 2024, the SEC issued a final rule that requires registrants to disclose climate-related information in their annual reports and in registration statements. In April 2024, the SEC chose to stay the newly adopted rulemaking pending judicial review of related consolidated Eighth Circuit petitions. If the stay is lifted, certain disclosures may be required in annual reports for the year ending December 31, 2025, filed in 2026. The Company is currently evaluating the impacts of the rules on its consolidated financial statements.
Improvement to Income Tax Disclosures
In December 2023, ASU 2023-09 was issued, requiring disaggregated information about the effective tax rate reconciliation and additional information on taxes paid that meet a qualitative threshold. The new guidance is effective for annual reporting periods beginning after December 15, 2024, with early adoption permitted. The Company is currently evaluating the impacts of the guidance on its Consolidated Financial Statements.
NOTE 3 ACQUISITIONS AND DIVESTITURES
Business Acquisition
On November 6, 2023 (the “acquisition date”), Newmont completed its business combination transaction with Newcrest, a public Australian mining company limited by shares, whereby Newmont, through Newmont Sub, acquired all of the ordinary shares of Newcrest, pursuant to a court-approved scheme of arrangement under Part 5.1 of the Australian Corporations Act 2001 (Cth) between Newcrest and its stockholders, as contemplated by a scheme implementation deed, dated as of May 15, 2023, by and among Newmont, Newmont Sub and Newcrest, as amended from time to time. Upon implementation, Newmont completed the business acquisition of Newcrest, in which Newmont was the acquirer and Newcrest became a direct wholly owned subsidiary of Newmont Sub and an indirect wholly owned subsidiary of Newmont (such acquisition, the “Newcrest transaction”). The acquisition of Newcrest increased the Company’s gold and other metal reserves and expanded its operating jurisdictions.
The acquisition date fair value of the consideration transferred consisted of the following:
| (in millions, except share and per share data) | Shares | Per Share | Purchase Consideration | |||||||||||||||||
| Stock Consideration | ||||||||||||||||||||
| Shares of Newmont exchanged for Newcrest outstanding ordinary shares | 357,691,627 | $ | 37.88 | $ | 13,549 | |||||||||||||||
| Total Purchase Price | $ | 13,549 |
The Company retained an independent appraiser to determine the fair value of assets acquired and liabilities assumed. In accordance with the acquisition method of accounting, the purchase price of Newcrest was allocated to the acquired assets and assumed liabilities based on their estimated acquisition date fair values. The fair value estimates were based on income, market and cost valuation methods. The excess of the total consideration over the estimated fair value of the amounts assigned to the identifiable assets acquired and liabilities assumed was recorded as goodwill, which is not deductible for income tax purposes. The goodwill balance is mainly attributable to: (i) the acquisition of existing operating mines with access to an assembled workforce that cannot be duplicated at the same costs by new entrants; (ii) operating synergies anticipated from the integration of the operations of Newmont and Newcrest; and (iii) the application of Newmont’s Full Potential program and potential strategic and financial benefits that include the increase in reserve base and opportunities to identify additional mineralization through exploration activities.
NEWMONT CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(dollars in millions, except per share, per ounce and per pound amounts)
In 2024, the Company completed the analysis to assign fair values to all assets acquired and liabilities assumed. The following table summarizes the final purchase price allocation for the Newcrest transaction:
| ASSETS | |||||
| Cash and cash equivalents | $ | 668 | |||
| Trade receivables | 212 | ||||
| Inventories | 723 | ||||
| Stockpiles and ore on leach pads | 113 | ||||
| Derivative assets | 42 | ||||
| Other current assets | 193 | ||||
| Current assets | 1,951 | ||||
| Property, plant and mine development, net (1) | 13,504 | ||||
| Investments (2) | 990 | ||||
| Stockpiles and ore on leach pads (3) | 219 | ||||
| Deferred income tax assets (4) | 75 | ||||
| Goodwill (5) | 2,401 | ||||
| Derivative assets | 362 | ||||
| Other non-current assets (6) | 398 | ||||
| Total assets | 19,900 | ||||
| LIABILITIES | |||||
| Accounts payable | 344 | ||||
| Employee-related benefits | 143 | ||||
| Lease and other financing obligations | 16 | ||||
| Debt | 1,923 | ||||
| Other current liabilities | 333 | ||||
| Current liabilities | 2,759 | ||||
| Debt (7) | 1,373 | ||||
| Lease and other financing obligations | 35 | ||||
| Reclamation and remediation liabilities (8) | 745 | ||||
| Deferred income tax liabilities (4) | 1,236 | ||||
| Employee-related benefits | 192 | ||||
| Other non-current liabilities | 11 | ||||
| Total liabilities | 6,351 | ||||
| Net assets acquired | $ | 13,549 |
____________________________
(1)The fair value of property, plant and mine development is based on applying income, market, and cost valuation methods. Measurement period adjustments of $321 increased Property, plant and mine development, net, from the preliminary valuation primarily related to the Canadian, Lihir, and Telfer assets.
(2)The fair value of the investments was determined by applying the market approach, based on quoted prices for the acquired investments.
(3)The fair value of stockpiles and ore on leach pads is based on applying the income valuation method. Measurement period adjustments of $85 increased Stockpiles and ore on leach pads from the preliminary valuation primarily relating to the valuation of stockpiles at Lihir.
(4)Deferred income tax assets and liabilities represent the future tax benefit or future tax expense associated with the differences between the fair value allocated to assets (excluding the majority of the goodwill balance) and liabilities and a tax basis increase to the fair value of the assets acquired in Australia and the historical carryover tax basis of assets and liabilities in all other jurisdictions. No deferred tax liability is recognized for the basis difference inherent in the fair value allocated to goodwill. Measurement period adjustments resulted in Deferred income tax assets decreasing by $114 and Deferred income tax liabilities decreasing by $95 from the preliminary valuation.
(5)Goodwill is attributable to the following reportable segments: $669 to Brucejack; $539 to Red Chris; $249 to Cadia; and $944 to Lihir. Measurement period adjustments resulted in an overall reduction to Goodwill of $343 from the preliminary valuation.
(6)Measurement period adjustments of $305 increased Other non-current assets from the preliminary valuation primarily due to the recognition of an intangible asset.
(7)The fair value of the Newcrest senior notes was measured using a market approach, based on quoted prices for the acquired debt.
(8)The fair value of reclamation and remediation liabilities is based on the expected amounts and timing of cash flows for closure activities and discounted to present value using a credit-adjusted risk-free rate as of the acquisition date. Key assumptions include the costs and timing of key closure activities based on the life of mine plans, including estimates and timing of monitoring and water management costs (if applicable) after the completion of initial closure activities. Measurement period adjustments of $352 increased Reclamation and remediation liabilities.
Sales and Net income (loss) attributable to Newmont stockholders in the Consolidated Statement of Operations includes Newcrest revenue of $944 and Newcrest net income of $136 from the acquisition date to December 31, 2023.
NEWMONT CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(dollars in millions, except per share, per ounce and per pound amounts)
Pro Forma Financial Information (unaudited)
The following unaudited pro forma financial information presents consolidated results assuming the Newcrest transaction occurred on January 1, 2022.
| Year Ended December 31, | |||||||||||
| 2023 | 2022 | ||||||||||
| Sales | $ | 15,432 | $ | 16,418 | |||||||
| Net income (loss) attributable to Newmont stockholders (1) | $ | (1,991) | $ | 410 |
____________________________
(1)Includes $464 of Newcrest transaction and integration costs for the year ended December 31, 2023.
Divestitures
Based on a comprehensive review of the Company’s portfolio of assets, the Company’s Board of Directors approved a portfolio optimization program to divest six non-core assets and a development project in February 2024. The non-core assets to be divested include the CC&V, Musselwhite, Porcupine, Éléonore, Telfer, and Akyem reportable segments, and the Coffee development project which is included within the non-operating segment Corporate and Other. The Telfer disposal group also includes the Havieron development project, which was 70% owned by the Company and accounted for under proportionate consolidation, and other related assets. As of December 31, 2023, the aggregate net book value of the non-core assets and the development project was $3,419.
In February 2024, based on progress made through the Company's active sales program and management’s expectation that the sale is probable and will be completed within 12 months, the Company concluded that these non-core assets and the development project met the accounting requirements to be presented as held for sale. Upon meeting the requirements to be presented as held for sale, the six non-core assets and the development project were recorded at the lower of the carrying value or fair value, less costs to sell, and are periodically valued until sale occurs.
In the September 2024, the Company entered into a definitive agreement to sell the assets of Telfer reportable segment, which closed in the fourth quarter of 2024. Refer below for further information on the sale. Additionally, in the fourth quarter of 2024 the Company entered into definitive agreements to sell the reportable segments of Akyem, Musselwhite, Éléonore, and CC&V, and in January 2025 the Company entered into a definitive agreement to sell the Porcupine reportable segment, all of which are expected to close in the first half of 2025 and remained designated as held for sale at December 31, 2024.
Telfer Sale. The Company completed the sale of the assets of the Telfer reportable segment, including its 70% interest in the Havieron development project and other related assets, to Greatland Gold plc ("Greatland") on December 4, 2024 (the "Telfer Sale"). Under the terms of the sale agreement, the Company received total consideration of $453, which includes (i) cash consideration of $217, net of working capital adjustments, (ii) equity consideration of $242 in the form of 2.7 billion Greatland shares to be accounted for as an equity method investment for which the Company elected the fair value option, (iii) an option of $67 in which a third party has the option to acquire 1.3 billion of the Company's Greatland shares at a set price exercisable for four years, accounted for as a financial liability for which the Company elected the fair value option ("Greatland option"), and (iv) the potential to receive contingent payments of up to $100 tied to future Havieron production and gold price over a five-year period. The contingent payments do not meet the definition of a derivative and are considered to be a financial asset, for which the Company recorded at fair value at completion of the sale, with a fair value of $61. The agreement is inclusive of transitional services support to be provided by the Company for a one year period following close.
As a result of the sale, a loss of $160 is recognized in Loss on assets held for sale for the year ended December 31, 2024. Certain working capital adjustments are to be finalized over a period of up to 180 days from completion of the sale. Any resulting revisions will be settled in cash, with an offsetting impact to recognized in Other income (loss), net. Adjustments are not expected to be material.
Assets and liabilities held for sale. The non-core assets and the development project classified as held for sale are recorded at the lower of the carrying value or fair value, less costs to sell. These assets are periodically valued until sale occurs with any resulting gain or loss recognized in Loss on assets held for sale.
As a result, for the year ended December 31, 2024 a loss of $859 was recognized within Loss on assets held for sale, of which $160 and $699 related to Telfer and the disposal groups remaining as held for sale as of December 31, 2024, respectively. The $699 loss on the disposal groups remaining as held for sale resulted in an aggregate net book value of $2,432 at December 31, 2024. A resulting tax impact of $255 was recognized for the year ended December 31, 2024, resulting in a total loss of $1,114 recognized for the year ended December 31, 2024, within Loss on assets held for sale.
The estimated fair values of net assets held for sale were determined using the market approach for the Akyem, Musselwhite, Éléonore, CC&V, and Porcupine reportable segments utilizing the respective definitive agreements. The estimated fair value of net assets held for sale for the Coffee development project were determined using the income approach which included the following significant inputs: (i) cash flow estimates, (ii) a short-term gold price of $2,700 per ounce, (iii) a long-term gold price of $1,900 per
NEWMONT CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(dollars in millions, except per share, per ounce and per pound amounts)
ounce, (iv) current estimates of resources and exploration potential, and (v) a reporting unit specific discount rate of 9.75%. The estimated fair values are considered a non-recurring Level 2 or 3 fair value measurement and additional losses may be incurred as the Company continues to evaluate the definitive sales agreements, as the active sales program progresses, or as fair value estimates change.
The following table presents the carrying value of the major classes of assets and liabilities held for sale by disposal group as of December 31, 2024, prior to recognition of the write-down of $699 for the year ended December 31, 2024:
| CC&V (1) | Musselwhite (1) | Porcupine (1) | Éléonore (1) | Akyem (1) | Coffee Project (2) | Total | |||||||||||||||||||||||||||||||||||
| Assets held for sale: | |||||||||||||||||||||||||||||||||||||||||
| Property, plant and mine development, net | $ | 170 | $ | 1,063 | $ | 1,541 | $ | 785 | $ | 559 | $ | 321 | $ | 4,439 | |||||||||||||||||||||||||||
| Other assets | 408 | 39 | 93 | 70 | 258 | 1 | 869 | ||||||||||||||||||||||||||||||||||
| Carrying value of assets held for sale | $ | 578 | $ | 1,102 | $ | 1,634 | $ | 855 | $ | 817 | $ | 322 | $ | 5,308 | |||||||||||||||||||||||||||
| Liabilities held for sale: | |||||||||||||||||||||||||||||||||||||||||
| Reclamation and remediation liabilities | $ | 334 | $ | 82 | $ | 563 | $ | 87 | $ | 427 | $ | 3 | $ | 1,496 | |||||||||||||||||||||||||||
| Other liabilities | 37 | 257 | 223 | 71 | 91 | 2 | 681 | ||||||||||||||||||||||||||||||||||
| Carrying value of liabilities held for sale | $ | 371 | $ | 339 | $ | 786 | $ | 158 | $ | 518 | $ | 5 | $ | 2,177 |
____________________________
(1)In the fourth quarter of 2024, the Company entered into binding agreements to sell the Akyem, Musselwhite, Éléonore, and CC&V reportable segments. Additionally, in January 2025 the Company entered into a definitive agreement to sell the Porcupine reportable segment. The sales are expected to close in the first half of 2025.
(2)The Coffee Project is included in the non-operating segment Corporate and Other in Note 4.
While the Company remains committed to a plan to sell these assets for a fair price, there is a possibility that the assets held for sale may exceed one year due to events or circumstances beyond the Company's control.
NOTE 4 SEGMENT INFORMATION
The Company regularly reviews its segment reporting for alignment with its strategic goals and operational structure as well as for evaluation of business performance and allocation of resources by Newmont’s Chief Operating Decision Maker ("CODM"), which is the Chief Executive Officer. The Company's reportable segments consist of each of its 16 mining operations that it manages and its 38.5% proportionate interest in Nevada Gold Mines ("NGM") which it does not directly manage. The reportable segments at December 31, 2024 include certain reportable segments that are designated as held for sale and exclude those which have been divested. Refer to Note 3 for further information.
In the following tables, Income (loss) before income and mining tax and other items from reportable segments does not reflect general corporate expenses, interest (except project-specific interest), or income and mining taxes. Intercompany revenue and expense amounts have been eliminated within each segment in order to report on the basis that management uses internally for evaluating segment performance. The Company's business activities and operating segments that are not considered reportable, including all equity method investments, are reported in the non-operating segment Corporate and Other, which has been provided for reconciliation purposes.
The CODM uses Income (loss) before mining tax and other items to evaluate income generated from segment assets in deciding whether to reinvest profits into the mine operation or reallocate for other capital priorities under the Company's capital allocation strategy. Additionally, the CODM primarily uses this metric to assess performance of the segment, plan and forecast future business operations, and benchmark to competitors.
The financial information relating to the Company’s segments is as follows:
NEWMONT CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(dollars in millions, except per share, per ounce and per pound amounts)
| Sales | Costs Applicable to Sales | Depreciation and Amortization | Reclamation and Remediation | Advanced Projects, Research and Development and Exploration | Other Segment Expenses (Income) (1) | Income (Loss) before Income and Mining Tax and Other Items | Total Assets | Capital Expenditures (2) | |||||||||||||||||||||||||||||||||||||||||||||
| Year Ended December 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Brucejack | $ | 610 | $ | 312 | $ | 172 | $ | 5 | $ | 13 | $ | — | $ | 108 | $ | 2,660 | $ | 70 | |||||||||||||||||||||||||||||||||||
| Red Chris | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Gold | 96 | 47 | 14 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Copper | 229 | 172 | 52 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Total Red Chris | 325 | 219 | 66 | 7 | 13 | (2) | 22 | 2,580 | 150 | ||||||||||||||||||||||||||||||||||||||||||||
| Peñasquito: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Gold | 713 | 225 | 103 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Silver | 792 | 360 | 159 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Lead | 195 | 116 | 52 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Zinc | 622 | 427 | 162 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Total Peñasquito | 2,322 | 1,128 | 476 | 20 | 13 | 43 | 642 | 4,879 | 129 | ||||||||||||||||||||||||||||||||||||||||||||
| Merian | 660 | 401 | 84 | 4 | 21 | (1) | 151 | 943 | 81 | ||||||||||||||||||||||||||||||||||||||||||||
| Cerro Negro | 566 | 312 | 123 | 5 | 19 | 13 | 94 | 1,787 | 186 | ||||||||||||||||||||||||||||||||||||||||||||
| Yanacocha | 841 | 353 | 98 | 55 | 9 | 2 | 324 | 1,932 | 61 | ||||||||||||||||||||||||||||||||||||||||||||
| Boddington: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Gold | 1,417 | 613 | 112 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Copper | 329 | 204 | 39 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Total Boddington | 1,746 | 817 | 151 | 13 | 4 | (23) | 784 | 2,420 | 129 | ||||||||||||||||||||||||||||||||||||||||||||
| Tanami | 988 | 390 | 123 | 2 | 28 | (19) | 464 | 2,236 | 437 | ||||||||||||||||||||||||||||||||||||||||||||
| Cadia: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Gold | 1,118 | 297 | 119 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Copper | 743 | 280 | 123 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Total Cadia | 1,861 | 577 | 242 | 5 | 19 | (23) | 1,041 | 6,208 | 537 | ||||||||||||||||||||||||||||||||||||||||||||
| Lihir | 1,473 | 787 | 168 | 12 | 16 | 21 | 469 | 5,625 | 193 | ||||||||||||||||||||||||||||||||||||||||||||
| Ahafo | 1,923 | 722 | 215 | 8 | 41 | (38) | 975 | 3,425 | 382 | ||||||||||||||||||||||||||||||||||||||||||||
| NGM | 2,485 | 1,263 | 428 | 11 | 23 | 32 | 728 | 7,430 | 448 | ||||||||||||||||||||||||||||||||||||||||||||
| Held for Sale (3) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| CC&V | 347 | 200 | 13 | 11 | 7 | 19 | 97 | 561 | 26 | ||||||||||||||||||||||||||||||||||||||||||||
| Musselwhite | 516 | 224 | 18 | 3 | 6 | — | 265 | 1,102 | 97 | ||||||||||||||||||||||||||||||||||||||||||||
| Porcupine | 673 | 310 | 36 | 27 | 6 | 633 | (339) | 1,172 | 201 | ||||||||||||||||||||||||||||||||||||||||||||
| Éléonore | 583 | 325 | 21 | 4 | 11 | (2) | 224 | 855 | 100 | ||||||||||||||||||||||||||||||||||||||||||||
| Akyem | 495 | 338 | 57 | 14 | 5 | (5) | 86 | 817 | 24 | ||||||||||||||||||||||||||||||||||||||||||||
| Total Reportable Segments | 18,414 | 8,678 | 2,491 | 206 | 254 | 650 | 6,135 | 46,632 | 3,251 | ||||||||||||||||||||||||||||||||||||||||||||
| Corporate and Other | — | — | 68 | 109 | 195 | 967 | (1,339) | 9,717 | 22 | ||||||||||||||||||||||||||||||||||||||||||||
| Divested (4) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Telfer: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Gold | 242 | 245 | 14 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Copper | 26 | 40 | 3 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Total Telfer | 268 | 285 | 17 | 13 | 14 | 158 | (219) | — | 51 | ||||||||||||||||||||||||||||||||||||||||||||
| Consolidated | $ | 18,682 | $ | 8,963 | $ | 2,576 | $ | 328 | $ | 463 | $ | 1,775 | $ | 4,577 | $ | 56,349 | $ | 3,324 |
____________________________
(1)Other Segment Expenses (Income) for all reportable segments includes Impairment charges, Loss on assets held for sale, Other expense, net, and Other income (loss), net. Refer to Notes 7, 3, 8, and 9, respectively, for further information. Additionally, Other Segment Expenses (Income) includes General and administrative and Interest expense, net of capitalized interest, which are primarily incurred at the non-operating segment Corporate and Other.
(2)Primarily includes a decrease in accrued capital expenditures of $78. Consolidated capital expenditures on a cash basis were $3,402.
(3)Refer to Note 3 for further information on held for sale. The Coffee Project is included in the non-operating segment Corporate and Other.
(4)In the fourth quarter of 2024, the Company completed the sale of the assets of the Telfer reportable segment. Refer to Note 3 for further information.
NEWMONT CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(dollars in millions, except per share, per ounce and per pound amounts)
| Sales | Costs Applicable to Sales | Depreciation and Amortization | Reclamation and Remediation (1) | Advanced Projects, Research and Development and Exploration | Other Segment Expenses (Income) (1)(2) | Income (Loss) before Income and Mining Tax and Other Items | Total Assets | Capital Expenditures (3) | |||||||||||||||||||||||||||||||||||||||||||||
| Year Ended December 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| CC&V | $ | 332 | $ | 198 | $ | 23 | $ | 12 | $ | 13 | $ | 4 | $ | 82 | $ | 383 | $ | 64 | |||||||||||||||||||||||||||||||||||
| Musselwhite | 351 | 214 | 80 | 3 | 10 | 298 | (254) | 1,018 | 104 | ||||||||||||||||||||||||||||||||||||||||||||
| Porcupine | 503 | 301 | 117 | 18 | 17 | 5 | 45 | 1,473 | 166 | ||||||||||||||||||||||||||||||||||||||||||||
| Éléonore | 453 | 295 | 101 | 3 | 10 | 247 | (203) | 777 | 106 | ||||||||||||||||||||||||||||||||||||||||||||
| Brucejack (4) | 72 | 69 | 22 | — | 7 | — | (26) | 4,006 | 22 | ||||||||||||||||||||||||||||||||||||||||||||
| Red Chris (4) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Gold | 9 | 4 | 1 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Copper | 23 | 17 | 3 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Total Red Chris | 32 | 21 | 4 | — | — | (1) | 8 | 2,178 | 25 | ||||||||||||||||||||||||||||||||||||||||||||
| Peñasquito: (5) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Gold | 257 | 158 | 67 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Silver | 335 | 300 | 134 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Lead | 96 | 98 | 45 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Zinc | 213 | 253 | 105 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Total Peñasquito | 901 | 809 | 351 | 18 | 11 | 1,523 | (1,811) | 4,738 | 113 | ||||||||||||||||||||||||||||||||||||||||||||
| Merian | 625 | 385 | 82 | 3 | 23 | 10 | 122 | 927 | 84 | ||||||||||||||||||||||||||||||||||||||||||||
| Cerro Negro | 510 | 328 | 137 | 4 | 10 | 16 | 15 | 1,646 | 162 | ||||||||||||||||||||||||||||||||||||||||||||
| Yanacocha | 537 | 294 | 85 | 1,232 | 11 | (15) | (1,070) | 2,117 | 312 | ||||||||||||||||||||||||||||||||||||||||||||
| Boddington: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Gold | 1,451 | 634 | 108 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Copper | 363 | 204 | 35 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Total Boddington | 1,814 | 838 | 143 | 12 | 6 | 4 | 811 | 2,376 | 164 | ||||||||||||||||||||||||||||||||||||||||||||
| Tanami | 867 | 337 | 110 | 2 | 30 | (19) | 407 | 1,896 | 413 | ||||||||||||||||||||||||||||||||||||||||||||
| Cadia (4) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Gold | 250 | 129 | 16 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Copper | 172 | 116 | 14 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Total Cadia | 422 | 245 | 30 | — | 2 | (13) | 158 | 6,351 | 75 | ||||||||||||||||||||||||||||||||||||||||||||
| Telfer (4) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Gold | 135 | 126 | 6 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Copper | 17 | 22 | 1 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Total Telfer | 152 | 148 | 7 | 1 | 4 | 2 | (10) | 574 | 9 | ||||||||||||||||||||||||||||||||||||||||||||
| Lihir (4) | 266 | 146 | 20 | — | 2 | 5 | 93 | 3,909 | 53 | ||||||||||||||||||||||||||||||||||||||||||||
| Ahafo | 1,130 | 547 | 181 | 7 | 40 | (14) | 369 | 2,823 | 310 | ||||||||||||||||||||||||||||||||||||||||||||
| Akyem | 574 | 275 | 122 | 12 | 19 | (5) | 151 | 1,069 | 40 | ||||||||||||||||||||||||||||||||||||||||||||
| NGM | 2,271 | 1,249 | 452 | 11 | 29 | 98 | 432 | 7,401 | 472 | ||||||||||||||||||||||||||||||||||||||||||||
| Total Reportable Segments | 11,812 | 6,699 | 2,067 | 1,338 | 244 | 2,145 | (681) | 45,662 | 2,694 | ||||||||||||||||||||||||||||||||||||||||||||
| Corporate and Other | — | — | 41 | 195 | 221 | 893 | (1,350) | 9,844 | 51 | ||||||||||||||||||||||||||||||||||||||||||||
| Consolidated | $ | 11,812 | $ | 6,699 | $ | 2,108 | $ | 1,533 | $ | 465 | $ | 3,038 | $ | (2,031) | $ | 55,506 | $ | 2,745 |
____________________________
(1)Segment presentation for the prior period has been recast due to the adoption of ASU 2023-07.
(2)Other Segment Expenses (Income) for all reportable segments includes Impairment charges, Other expense, net, and Other income (loss), net. Refer to Notes 7, 8, and 9, respectively, for further information. Additionally, Other Segment Expenses (Income) includes General and administrative and Interest expense, net of capitalized interest which are primarily incurred at the non-operating segment Corporate and Other.
(3)Primarily includes an increase in accrued capital expenditures of $79. Consolidated capital expenditures on a cash basis were $2,666.
(4)Sites acquired through the Newcrest transaction. Refer to Note 3 for further information.
(5)In June 2023, the National Union of Mine and Metal Workers of the Mexican Republic (the "Union") notified the Company of a strike action. In response to the strike notice, the Company suspended operations at Peñasquito. The Company reached an agreement with the Union and operations at Peñasquito resumed in the fourth quarter of 2023.
NEWMONT CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(dollars in millions, except per share, per ounce and per pound amounts)
| Sales | Costs Applicable to Sales | Depreciation and Amortization | Reclamation and Remediation (1) | Advanced Projects, Research and Development and Exploration | Other Segment Expenses (Income) (1)(2) | Income (Loss) before Income and Mining Tax and Other Items | Total Assets | Capital Expenditures (3) | |||||||||||||||||||||||||||||||||||||||||||||
| Year Ended December 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| CC&V | $ | 333 | $ | 241 | $ | 71 | $ | 17 | $ | 11 | $ | 520 | $ | (527) | $ | 286 | $ | 44 | |||||||||||||||||||||||||||||||||||
| Musselwhite | 305 | 195 | 79 | 2 | 8 | (2) | 23 | 1,294 | 54 | ||||||||||||||||||||||||||||||||||||||||||||
| Porcupine | 504 | 281 | 104 | 98 | 14 | 336 | (329) | 1,401 | 152 | ||||||||||||||||||||||||||||||||||||||||||||
| Éléonore | 391 | 266 | 115 | 2 | 5 | (1) | 4 | 1,010 | 60 | ||||||||||||||||||||||||||||||||||||||||||||
| Peñasquito: (4) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Gold | 1,006 | 442 | 148 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Silver | 549 | 454 | 151 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Lead | 133 | 94 | 32 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Zinc | 501 | 316 | 96 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Total Peñasquito | 2,189 | 1,306 | 427 | 13 | 19 | 21 | 403 | 6,430 | 183 | ||||||||||||||||||||||||||||||||||||||||||||
| Merian | 723 | 369 | 80 | 2 | 21 | 2 | 249 | 923 | 56 | ||||||||||||||||||||||||||||||||||||||||||||
| Cerro Negro | 508 | 283 | 148 | 3 | 25 | 500 | (451) | 1,659 | 132 | ||||||||||||||||||||||||||||||||||||||||||||
| Yanacocha | 451 | 313 | 95 | 639 | 22 | (6) | (612) | 2,225 | 439 | ||||||||||||||||||||||||||||||||||||||||||||
| Boddington: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Gold | 1,447 | 652 | 118 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Copper | 316 | 181 | 34 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Total Boddington | 1,763 | 833 | 152 | 10 | 7 | (18) | 779 | 2,264 | 72 | ||||||||||||||||||||||||||||||||||||||||||||
| Tanami | 878 | 328 | 101 | 1 | 28 | (2) | 422 | 1,585 | 343 | ||||||||||||||||||||||||||||||||||||||||||||
| Ahafo | 1,023 | 566 | 167 | 4 | 26 | (7) | 267 | 2,619 | 268 | ||||||||||||||||||||||||||||||||||||||||||||
| Akyem | 749 | 334 | 141 | 6 | 14 | (3) | 257 | 998 | 34 | ||||||||||||||||||||||||||||||||||||||||||||
| NGM | 2,098 | 1,153 | 471 | 5 | 32 | 3 | 434 | 7,419 | 308 | ||||||||||||||||||||||||||||||||||||||||||||
| Total Reportable Segments | 11,915 | 6,468 | 2,151 | 802 | 232 | 1,343 | 919 | 30,113 | 2,145 | ||||||||||||||||||||||||||||||||||||||||||||
| Corporate and Other | — | — | 34 | 119 | 228 | 589 | (970) | 8,369 | 45 | ||||||||||||||||||||||||||||||||||||||||||||
| Consolidated | $ | 11,915 | $ | 6,468 | $ | 2,185 | $ | 921 | $ | 460 | $ | 1,932 | $ | (51) | $ | 38,482 | $ | 2,190 |
____________________________
(1)Segment presentation for the prior period has been recast due to the adoption of ASU 2023-07.
(2)Other Segment Expenses (Income) for all reportable segments includes Impairment charges, Other expense, net, and Other income (loss), net. Refer to Notes 7, 8, and 9, respectively, for more information. Additionally, Other Segment Expenses (Income) includes General and administrative and Interest expense, net of capitalized interest which are primarily incurred at the non-operating segment Corporate and Other.
(3)Includes an increase in accrued capital expenditures of $59. Consolidated capital expenditures on a cash basis were $2,131.
(4)Costs applicable to sales includes amounts resulting from the profit-sharing agreement completed with the Peñasquito workforce during the second quarter of 2022. Under the agreement, the Company will pay its workforce an uncapped profit-sharing bonus each year, based on the agreed upon terms. Additionally, the terms of the agreement are retroactively applied to profit-sharing related to 2021 site performance, resulting in $70 recorded within Costs applicable to sales in the second quarter of 2022. The amounts related to the 2021 profit-sharing were paid in the third quarter of 2022.
NEWMONT CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(dollars in millions, except per share, per ounce and per pound amounts)
Long-lived assets, which consist of Property, plant and mine development, net, non-current Stockpiles and ore on leach pads, and non-current right-of-use assets, included in Other non-current assets, were as follows:
| At December 31, | |||||||||||
| 2024 | 2023 | ||||||||||
| Australia | $ | 9,490 | $ | 9,373 | |||||||
| Canada (1) | 8,358 | 8,789 | |||||||||
| United States (1) | 7,125 | 7,011 | |||||||||
| Papua New Guinea | 4,514 | 3,140 | |||||||||
| Mexico | 3,822 | 4,119 | |||||||||
| Ghana (1) | 2,755 | 2,626 | |||||||||
| Peru | 2,203 | 2,254 | |||||||||
| Argentina | 1,582 | 1,508 | |||||||||
| Suriname | 726 | 726 | |||||||||
| Other | 27 | 32 | |||||||||
| $ | 40,602 | $ | 39,578 |
____________________________
(1)Canada, United States, and Ghana include $3,723, $434, and $565, respectively, of long-lived assets included in Assets held for sale. Refer to Note 3 for additional information.
NEWMONT CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(dollars in millions, except per share, per ounce and per pound amounts)
NOTE 5 SALES
The following tables present the Company’s Sales by mining operation, product and inventory type:
| Gold Sales from Doré Production | Sales from Concentrate and Other Production | Total Sales | |||||||||||||||
| Year Ended December 31, 2024 | |||||||||||||||||
| Brucejack | $ | 415 | $ | 195 | $ | 610 | |||||||||||
| Red Chris: | |||||||||||||||||
| Gold | — | 96 | 96 | ||||||||||||||
| Copper | — | 229 | 229 | ||||||||||||||
| Total Red Chris | — | 325 | 325 | ||||||||||||||
| Peñasquito: | |||||||||||||||||
| Gold | — | 713 | 713 | ||||||||||||||
| Silver (1) | — | 792 | 792 | ||||||||||||||
| Lead | — | 195 | 195 | ||||||||||||||
| Zinc | — | 622 | 622 | ||||||||||||||
| Total Peñasquito | — | 2,322 | 2,322 | ||||||||||||||
| Merian | 638 | 22 | 660 | ||||||||||||||
| Cerro Negro | 566 | — | 566 | ||||||||||||||
| Yanacocha | 833 | 8 | 841 | ||||||||||||||
| Boddington: | |||||||||||||||||
| Gold | 353 | 1,064 | 1,417 | ||||||||||||||
| Copper | — | 329 | 329 | ||||||||||||||
| Total Boddington | 353 | 1,393 | 1,746 | ||||||||||||||
| Tanami | 988 | — | 988 | ||||||||||||||
| Cadia: | |||||||||||||||||
| Gold | 126 | 992 | 1,118 | ||||||||||||||
| Copper | — | 743 | 743 | ||||||||||||||
| Total Cadia | 126 | 1,735 | 1,861 | ||||||||||||||
| Lihir | 1,473 | — | 1,473 | ||||||||||||||
| Ahafo | 1,923 | — | 1,923 | ||||||||||||||
| NGM (2) | 2,336 | 149 | 2,485 | ||||||||||||||
| Held for sale (3) | |||||||||||||||||
| CC&V | 347 | — | 347 | ||||||||||||||
| Musselwhite | 516 | — | 516 | ||||||||||||||
| Porcupine | 673 | — | 673 | ||||||||||||||
| Éléonore | 583 | — | 583 | ||||||||||||||
| Akyem | 495 | — | 495 | ||||||||||||||
| Divested (4) | |||||||||||||||||
| Telfer: | |||||||||||||||||
| Gold | 47 | 195 | 242 | ||||||||||||||
| Copper | — | 26 | 26 | ||||||||||||||
| Total Telfer | 47 | 221 | 268 | ||||||||||||||
| Consolidated | $ | 12,312 | $ | 6,370 | $ | 18,682 |
____________________________
(1)Silver sales from concentrate includes $91 related to non-cash amortization of the silver streaming agreement liability.
(2)The Company purchases its proportionate share of gold doré from NGM for resale to third parties. Gold doré purchases from NGM totaled $2,338.
(3)Refer to Note 3 for further information on held for sale.
(4)In the fourth quarter of 2024, the Company completed the sale of the assets of the Telfer reportable segment. Refer to Note 3 for further information.
NEWMONT CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(dollars in millions, except per share, per ounce and per pound amounts)
| Gold Sales from Doré Production | Sales from Concentrate and Other Production | Total Sales | |||||||||||||||
| Year Ended December 31, 2023 | |||||||||||||||||
| CC&V | $ | 332 | $ | — | $ | 332 | |||||||||||
| Musselwhite | 351 | — | 351 | ||||||||||||||
| Porcupine | 503 | — | 503 | ||||||||||||||
| Éléonore | 453 | — | 453 | ||||||||||||||
| Brucejack (1) | 48 | 24 | 72 | ||||||||||||||
| Red Chris: (1) | |||||||||||||||||
| Gold | — | 9 | 9 | ||||||||||||||
| Copper | — | 23 | 23 | ||||||||||||||
| Total Red Chris | — | 32 | 32 | ||||||||||||||
| Peñasquito: | |||||||||||||||||
| Gold | 36 | 221 | 257 | ||||||||||||||
| Silver (2) | — | 335 | 335 | ||||||||||||||
| Lead | — | 96 | 96 | ||||||||||||||
| Zinc | — | 213 | 213 | ||||||||||||||
| Total Peñasquito | 36 | 865 | 901 | ||||||||||||||
| Merian | 600 | 25 | 625 | ||||||||||||||
| Cerro Negro | 510 | — | 510 | ||||||||||||||
| Yanacocha | 526 | 11 | 537 | ||||||||||||||
| Boddington: | |||||||||||||||||
| Gold | 359 | 1,092 | 1,451 | ||||||||||||||
| Copper | — | 363 | 363 | ||||||||||||||
| Total Boddington | 359 | 1,455 | 1,814 | ||||||||||||||
| Tanami | 867 | — | 867 | ||||||||||||||
| Cadia: (1) | |||||||||||||||||
| Gold | 28 | 222 | 250 | ||||||||||||||
| Copper | — | 172 | 172 | ||||||||||||||
| Total Cadia | 28 | 394 | 422 | ||||||||||||||
| Telfer: (1) | |||||||||||||||||
| Gold | 20 | 115 | 135 | ||||||||||||||
| Copper | — | 17 | 17 | ||||||||||||||
| Total Telfer | 20 | 132 | 152 | ||||||||||||||
| Lihir (1) | 266 | — | 266 | ||||||||||||||
| Ahafo | 1,130 | — | 1,130 | ||||||||||||||
| Akyem | 574 | — | 574 | ||||||||||||||
| NGM (2) | 2,178 | 93 | 2,271 | ||||||||||||||
| Consolidated | $ | 8,781 | $ | 3,031 | $ | 11,812 |
____________________________
(1)Sites acquired through the Newcrest transaction. Refer to Note 3 for further information.
(2)Silver sales from concentrate includes $42 related to non-cash amortization of the silver streaming agreement liability.
(3)The Company purchases its proportionate share of gold doré from NGM for resale to third parties. Gold doré purchases from NGM totaled $2,174.
NEWMONT CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(dollars in millions, except per share, per ounce and per pound amounts)
| Gold Sales from Doré Production | Sales from Concentrate and Other Production | Total Sales | |||||||||||||||
| Year Ended December 31, 2022 | |||||||||||||||||
| CC&V | $ | 328 | $ | 5 | $ | 333 | |||||||||||
| Musselwhite | 305 | — | 305 | ||||||||||||||
| Porcupine | 504 | — | 504 | ||||||||||||||
| Éléonore | 391 | — | 391 | ||||||||||||||
| Peñasquito: | |||||||||||||||||
| Gold | 110 | 896 | 1,006 | ||||||||||||||
| Silver (1) | — | 549 | 549 | ||||||||||||||
| Lead | — | 133 | 133 | ||||||||||||||
| Zinc | — | 501 | 501 | ||||||||||||||
| Total Peñasquito | 110 | 2,079 | 2,189 | ||||||||||||||
| Merian | 723 | — | 723 | ||||||||||||||
| Cerro Negro | 508 | — | 508 | ||||||||||||||
| Yanacocha | 446 | 5 | 451 | ||||||||||||||
| Boddington: | |||||||||||||||||
| Gold | 366 | 1,081 | 1,447 | ||||||||||||||
| Copper | — | 316 | 316 | ||||||||||||||
| Total Boddington | 366 | 1,397 | 1,763 | ||||||||||||||
| Tanami | 878 | — | 878 | ||||||||||||||
| Ahafo | 1,023 | — | 1,023 | ||||||||||||||
| Akyem | 749 | — | 749 | ||||||||||||||
| NGM (2) | 2,026 | 72 | 2,098 | ||||||||||||||
| Consolidated | $ | 8,357 | $ | 3,558 | $ | 11,915 |
____________________________
(1)Silver sales from concentrate includes $73 related to non-cash amortization of the silver streaming agreement liability.
(2)The Company purchases its proportionate share of gold doré from NGM for resale to third parties. Gold doré purchases from NGM totaled $2,022.
Trade Receivables and Provisional Sales
At December 31, 2024 and December 31, 2023, Trade receivables primarily consisted of sales from provisionally priced concentrate and other production. The impact to Sales from revenue recognized due to the changes in pricing is an increase (decrease) of $125, $37, and $(34) for the years ended December 31, 2024, 2023, and 2022, respectively.
At December 31, 2024, Newmont had the following provisionally priced concentrate sales subject to final pricing over the next several months:
| Provisionally Priced Sales Subject to Final Pricing (1) | Average Provisional Price (per ounce/pound) | ||||||||||
| Gold (ounces, in thousands) | 265 | $ | 2,635 | ||||||||
| Copper (pounds, in millions) | 85 | $ | 3.99 | ||||||||
| Silver (ounces, in millions) | 6 | $ | 28.99 | ||||||||
| Lead (pounds, in millions) | 52 | $ | 0.88 | ||||||||
| Zinc (pounds, in millions) | 114 | $ | 1.34 | ||||||||
____________________________
(1)Includes provisionally priced by-product sales subject to final pricing, which are recognized in Costs applicable to sales.
Silver Streaming Agreement
The Company is obligated to sell 25% of silver production from the Peñasquito mine to Wheaton Precious Metals Corporation at the lesser of market price or a fixed contract price, subject to an annual inflation adjustment of up to 1.65%. This agreement contains off-market terms and was initially recognized at its acquisition date fair value as a finite-lived intangible liability. The current and non-current portion are recorded to Other current liabilities and Silver streaming agreement, respectively. The Company’s policy is to amortize the liability into Sales each period using the units-of-production method. During the years ended December 31, 2024, 2023, and 2022, the Company amortized $91, $42, and $73, respectively, of the liability into revenue. At December 31, 2024 and 2023, the value of the liability included in the Consolidated Balance Sheet was $775 and $866, respectively.
NEWMONT CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(dollars in millions, except per share, per ounce and per pound amounts)
Revenue by Geographic Area
Newmont primarily conducts metal sales in U.S. dollars, and therefore Sales are not exposed to fluctuations in foreign currencies. Revenues from sales attributed to countries based on the location of the customer were as follows:
| Year Ended December 31, | |||||||||||||||||
| 2024 | 2023 | 2022 | |||||||||||||||
| United Kingdom (1) | $ | 10,966 | $ | 7,637 | $ | 7,537 | |||||||||||
| South Korea | 1,956 | 975 | 1,426 | ||||||||||||||
| Japan | 1,920 | 512 | 442 | ||||||||||||||
| Philippines | 709 | 451 | 340 | ||||||||||||||
| Switzerland | 638 | 600 | 721 | ||||||||||||||
| Mexico | 600 | 240 | 604 | ||||||||||||||
| Australia | 409 | 376 | 7 | ||||||||||||||
| United States | 2 | 48 | 24 | ||||||||||||||
| Other | 1,482 | 973 | 814 | ||||||||||||||
| $ | 18,682 | $ | 11,812 | $ | 11,915 |
____________________________
(1)Includes $91, $42, and $73 related to non-cash amortization of the silver streaming agreement liability for the years ended December 31, 2024, 2023, and 2022, respectively.
Revenue by Major Customer
As gold can be sold through numerous gold market traders worldwide, the Company is not economically dependent on a limited number of customers for the sale of its product. The Company sells copper, silver, lead, and zinc predominantly in the form of concentrates. The concentrates are sold under a combination of short-term and long-term supply contracts with processing fees based on the demand for these concentrates in the global marketplace.
Customers with revenue in excess of 10% of total Sales consisted of the following customers in 2024: Standard Chartered $4,833 (26%), JPMorgan Chase $2,317 (12%), and Royal Bank of Canada $1,897 (10%); in 2023: JPMorgan Chase $2,583 (22%), Royal Bank of Canada $1,765 (15%), Standard Chartered $1,659 (14%), and Toronto Dominion Bank $1,630 (14%); in 2022: Standard Chartered $4,179 (35%) and JPMorgan Chase $1,503 (13%).
NOTE 6 RECLAMATION AND REMEDIATION
The Company’s mining and exploration activities are subject to various domestic and international laws and regulations governing the protection of the environment. These laws and regulations are continually changing and are generally becoming more restrictive. The Company conducts its operations to protect public health and the environment and believes its operations are in compliance with applicable laws and regulations in all material respects. The Company has made, and expects to make in the future, expenditures to comply with such laws and regulations, but cannot predict the full amount of such future expenditures. Estimated future reclamation and remediation costs are based principally on current legal and regulatory requirements.
The Company’s Reclamation and remediation expense consisted of:
| Year Ended December 31, | |||||||||||||||||
| 2024 | 2023 | 2022 | |||||||||||||||
| Reclamation adjustments and other | $ | (108) | $ | 1,207 | $ | 646 | |||||||||||
| Reclamation accretion | 365 | 238 | 173 | ||||||||||||||
| Reclamation expense | 257 | 1,445 | 819 | ||||||||||||||
| Remediation adjustments and other | 64 | 81 | 96 | ||||||||||||||
| Remediation accretion | 7 | 7 | 6 | ||||||||||||||
| Remediation expense | 71 | 88 | 102 | ||||||||||||||
| Reclamation and remediation | $ | 328 | $ | 1,533 | $ | 921 |
In 2024, reclamation adjustments were primarily due to a $136 decrease at portions of the Yanacocha site that are no longer in production and with no expected substantive economic value (i.e., non-operating) as a result of updated cost estimates. In 2023, reclamation adjustments were primarily due to increased water management costs at non-operating portions of the Yanacocha site, which resulted in an increase of $1,101. In 2022, reclamation adjustments were primarily due to higher estimated closure costs resulting from cost inflation and increased water management costs at portions of the Yanacocha and Porcupine site operations that are non-operating that resulted in increases of $529 and $91, respectively.
NEWMONT CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(dollars in millions, except per share, per ounce and per pound amounts)
In 2024, remediation adjustments were primarily due to the completion of haul road safety enhancements, continued clean up of contaminated materials, and closure of the three mine portals at the Ross Adams mine. In 2023 remediation adjustments were primarily due to higher water management costs and project execution delays at the Midnite mine and Dawn mill sites. In 2022, remediation adjustments are primarily due to higher waste disposal costs and project execution delays at the Midnite mine and Dawn mill sites.
The following are reconciliations of Reclamation and remediation liabilities:
| Reclamation | Remediation | Total | |||||||||||||||
| Balance at January 1, 2023 | $ | 6,731 | $ | 373 | $ | 7,104 | |||||||||||
| Additions, changes in estimates and other | 1,246 | 65 | 1,311 | ||||||||||||||
| Additions from the Newcrest transaction | 401 | — | 401 | ||||||||||||||
| Payments, net | (231) | (44) | (275) | ||||||||||||||
| Accretion expense | 238 | 7 | 245 | ||||||||||||||
| Balance at December 31, 2023 | 8,385 | 401 | 8,786 | ||||||||||||||
| Additions, changes in estimates and other | 41 | 44 | 85 | ||||||||||||||
| Acquisitions and divestitures (4) | 71 | — | 71 | ||||||||||||||
| Payments, net | (351) | (82) | (433) | ||||||||||||||
| Accretion expense | 365 | 7 | 372 | ||||||||||||||
| Reclassification to Liabilities held for sale | (1,496) | — | (1,496) | ||||||||||||||
| Balance at December 31, 2024 | $ | 7,015 | $ | 370 | $ | 7,385 |
| At December 31, | |||||||||||||||||||||||||||||||||||
| 2024 | 2023 | ||||||||||||||||||||||||||||||||||
| Reclamation | Remediation | Total | Reclamation | Remediation | Total | ||||||||||||||||||||||||||||||
| Current (1) | $ | 928 | $ | 63 | $ | 991 | $ | 558 | $ | 61 | $ | 619 | |||||||||||||||||||||||
| Non-current (2) | 6,087 | 307 | 6,394 | 7,827 | 340 | 8,167 | |||||||||||||||||||||||||||||
| Total (3) | $ | 7,015 | $ | 370 | $ | 7,385 | $ | 8,385 | $ | 401 | $ | 8,786 |
____________________________
(1)The current portion of reclamation and remediation liabilities are included in Other current liabilities. Refer to Note 22.
(2)The non-current portion of reclamation and remediation liabilities are included in Reclamation and remediation liabilities.
(3)Total reclamation liabilities includes $4,546 and $4,804 related to Yanacocha at December 31, 2024 and 2023, respectively.
(4)During 2024, measurement period adjustments of $349 increased Reclamation and remediation liabilities from refinements to the preliminary valuation of the Newcrest sites. These adjustments were partially offset by $278 as a result of the sale of the assets of the Telfer reportable segment in the fourth quarter of 2024.
The Company is also involved in several matters concerning environmental remediation obligations associated with former, primarily historic, mining activities. Generally, these matters concern developing and implementing remediation plans at the various sites involved. Depending upon the ultimate resolution of these matters, the Company believes that it is reasonably possible that the liability for these matters could be as much as 51% greater or 5% lower than the amount accrued at December 31, 2024. The amounts accrued are reviewed periodically based upon facts and circumstances available at the time. Changes in estimates are included in Other current liabilities and Reclamation and remediation liabilities in the period estimates are revised.
Included in Assets held for sale at December 31, 2024 is $93 of restricted cash held for purposes of settling reclamation and remediation obligations at Akyem.
Included in Other non-current assets at December 31, 2024 and 2023 are $29 and $81 respectively, of non-current restricted cash held for purposes of settling reclamation and remediation obligations. The amounts at December 31, 2024 primarily relate to Ahafo and San Jose Reservoir at Yanacocha. The amounts at December 31, 2023 primarily relate to the Ahafo and Akyem mines in Ghana, Africa.
Included in Other non-current assets at December 31, 2024 and 2023 was $15 and $21, respectively, of non-current restricted investments, which are legally pledged for purposes of settling reclamation and remediation obligations. The amounts at December 31, 2024 and 2023 primarily relate to the San Jose Reservoir at Yanacocha.
Refer to Note 25 for further discussion of reclamation and remediation matters.
NEWMONT CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(dollars in millions, except per share, per ounce and per pound amounts)
NOTE 7 IMPAIRMENT CHARGES
| Year Ended December 31, | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2024 | 2023 | 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Long-lived and other assets (1) | Total | Long-lived and other assets (1) | Goodwill | Total | Long-lived and other assets (1) | Goodwill | Total | ||||||||||||||||||||||||||||||||||||||||||||||
| NGM (2) | $ | 25 | $ | 25 | $ | 75 | $ | 11 | $ | 86 | $ | 1 | $ | — | $ | 1 | |||||||||||||||||||||||||||||||||||||
| Peñasquito | 19 | 19 | 21 | 1,210 | 1,231 | 4 | — | 4 | |||||||||||||||||||||||||||||||||||||||||||||
| Cerro Negro | 2 | 2 | 5 | — | 5 | — | 459 | 459 | |||||||||||||||||||||||||||||||||||||||||||||
| CC&V (3) | 1 | 1 | 4 | — | 4 | 511 | — | 511 | |||||||||||||||||||||||||||||||||||||||||||||
| Musselwhite (3) | — | — | 4 | 293 | 297 | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||
| Éléonore (3) | — | — | — | 246 | 246 | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||
| Porcupine (3) | — | — | 5 | — | 5 | — | 341 | 341 | |||||||||||||||||||||||||||||||||||||||||||||
| Other | 31 | 31 | 17 | — | 17 | 4 | — | 4 | |||||||||||||||||||||||||||||||||||||||||||||
| Impairment charges | $ | 78 | $ | 78 | $ | 131 | $ | 1,760 | $ | 1,891 | $ | 520 | $ | 800 | $ | 1,320 |
____________________________
(1)Primarily relates to non-cash write-downs of materials and supplies inventory and various assets that are no longer in use, except for certain impairment charges recognized for the year ended December 31, 2022 as described below.
(2)At December 31, 2024 and 2023, the Company recognized its proportionate share of the non-cash impairment charge on long-lived assets at NGM. The impairment charge resulted in a remaining balance of $2 and $22 within Property, plant and mine development, net at December 31, 2024 and 2023, respectively. The remaining balances were estimated based on observable market values for comparable assets for the individual assets that were determined to have residual market value.
(3)Sites are classified as held for sale as of December 31, 2024. Refer to Note 3 for further information.
The estimated cash flows utilized in both the long-lived asset and goodwill impairment evaluations are derived from the Company's current business plans. The Company completed its annual business plan update which reflected updated mine plans, certain adverse changes in market conditions, including inflationary pressures to costs and capital, strategic evaluation regarding the use of capital, and updates to asset retirement costs.
Impairment of goodwill
The Company evaluates its goodwill for impairment annually at December 31 or when events or changes in circumstances indicate that the fair value of a reporting unit is less than its carrying value. Each operating mine is considered a distinct reporting unit for purposes of goodwill impairment testing. Based on the December 31, 2024 review, the Company concluded that Goodwill was not impaired at any of the reporting units.
Based on the December 31, 2023 review, the Company concluded that Goodwill was impaired at the Musselwhite, Éléonore and Peñasquito reporting units. The goodwill impairments at Musselwhite and Éléonore were driven by a deterioration in underlying cash flows from higher costs due to inflationary pressures, and resulted in non-cash impairment charges of $293 and $246, respectively, which represented the full goodwill balance of the reporting units prior to impairment. The goodwill impairment at Peñasquito was also driven by lower expected cash flows, primarily due to an update to the geological model that impacted expected metal grade and recoveries, as well as higher costs due to inflationary pressures, and resulted in a non-cash impairment charge of $1,210, which represented the full goodwill balance of the reporting unit prior to impairment. The long-lived assets of Musselwhite, Éléonore and Peñasquito were evaluated for impairment prior to the quantitative goodwill assessment and no impairment was identified.
In addition, the Company recorded a non-cash impairment charge of $11 at NGM as a result of the decision to not pursue permitting for Phase 2 mining at Long Canyon. As a result, NGM placed Long Canyon on long-term care and maintenance and revised their business plan. The impairment represented the full goodwill balance at Long Canyon based on the Company's proportionate interest in NGM.
The Company measured the impairments by comparing the total fair value of the operations to the corresponding reporting unit carrying value. The estimated fair value was determined using the income approach and is considered a non-recurring level 3 fair value measurement. Significant inputs to the fair value measured included (i) updated cash flow information from the Company's current business and closure plans, (ii) a short-term gold price of $1,950, (iii) a long-term gold price of $1,700, (iv) current estimates of reserves, resources, and exploration potential, and (v) a reporting unit specific discount rate of 10.00% at Musselwhite, 17.50% at Éléonore, and 6.75% at Peñasquito. The selected discount rates for Musselwhite and Éléonore incorporate additional premium related to operational risk at these sites.
Based on the December 31, 2022 review, the Company concluded that Goodwill was impaired at the Porcupine and the Cerro Negro reporting units. The Porcupine goodwill impairment was driven by a deterioration in underlying cash flows from higher costs due to inflationary pressures and higher capital costs related to safety enhancements and the expansion of the active tailings storage
NEWMONT CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(dollars in millions, except per share, per ounce and per pound amounts)
facility, ensuring GISTM compliance, as well as an increase to the asset retirement cost, and resulted in a non-cash impairment charge of $341, which represented the full goodwill balance of the reporting unit prior to impairment. The Cerro Negro goodwill impairment was driven by a 14% country specific discount rate that reflects current macroeconomic risk and uncertainty in Argentina, and resulted in a non-cash impairment charge of $459, which represented the full goodwill balance of the reporting unit prior to impairment. The long-lived assets of Porcupine and Cerro Negro were evaluated for impairment prior to the quantitative goodwill test and no impairment was identified.
The Company measured the impairments by comparing the total fair value of the existing operations to the corresponding reporting unit carrying value. The estimated fair value was determined using the income approach and is considered a non-recurring level 3 fair value measurement. Significant inputs to the fair value measured included (i) updated cash flow information from the Company's current business and closure plans, (ii) a short-term gold price of $1,750, (iii) a long-term gold price of $1,600, (iv) current estimates of reserves, resources, and exploration potential, and (v) a country specific discount rate of 4.50% in Canada and 14% in Argentina.
Impairment of long-lived and other assets
The Company reviews and evaluates its long-lived assets for impairment when events or changes in circumstances indicate that the related carrying amounts may not be recoverable.
During the fourth quarter of 2022, the Company determined that an impairment indicator existed at CC&V. This determination was based on the updated business plan, which reflected a deterioration in underlying cash flows from lower production, impacted by the decision to place the mill on long-term care and maintenance, higher costs due to inflationary pressures, as well as an increase to the asset retirement cost. As a result of the impairment indicator, a recoverability test was performed and the Company concluded the long-lived assets at CC&V were impaired resulting in a non-cash impairment charge of $511 and a remaining balance of $25 within Property, plant and mine development, net at December 31, 2022. The Company measured the impairment by comparing the total fair value of the existing operations to the carrying value of the corresponding assets. The estimated fair value was determined using the income approach and is considered a non-recurring level 3 fair value measurement. Significant inputs to the fair value measurement included (i) updated cash flow information from the Company's current business and closure plans, (ii) a short-term gold price of $1,750, (iii) a long-term gold price of $1,600, (iv) current estimates of reserves, resources, and exploration potential, and (v) a country specific pre-tax discount rate of 6.75%.
NOTE 8 OTHER EXPENSE, NET
| Year Ended December 31, | |||||||||||||||||
| 2024 | 2023 | 2022 | |||||||||||||||
| Newcrest transaction and integration costs (1) | $ | 72 | $ | 464 | $ | — | |||||||||||
| Settlement costs (2) | 44 | 7 | 22 | ||||||||||||||
| Restructuring and severance (3) | 38 | 24 | 4 | ||||||||||||||
| COVID-19 specific costs (4) | — | 1 | 38 | ||||||||||||||
| Other | 37 | 21 | 18 | ||||||||||||||
| Other expense, net | $ | 191 | $ | 517 | $ | 82 |
____________________________
(1)Related to the Newcrest transaction; refer to Note 3 for further information. For the year ended December 31, 2023, primarily comprised of a $316 stamp duty tax incurred in connection with the Newcrest transaction.
(2)Primarily relates to legal and other settlements, voluntary contributions, and other related costs. For the year ended December 31, 2024, primarily comprised of wind-down and demobilization costs related to the French Guiana project.
(3)Primarily represents severance and related costs associated with significant organizational and operating model changes implemented by the Company.
(4)Represents incremental direct costs incurred as a result of actions taken to protect against the impacts of the COVID-19 pandemic and to comply with local mandates. Beginning January 1, 2023, COVID-19 specific costs incurred in the ordinary course of business are recognized in Costs applicable to sales.
NEWMONT CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(dollars in millions, except per share, per ounce and per pound amounts)
NOTE 9 OTHER INCOME (LOSS), NET
| Year Ended December 31, | |||||||||||||||||
| 2024 | 2023 | 2022 | |||||||||||||||
| Interest income | $ | 152 | $ | 148 | $ | 78 | |||||||||||
| Foreign currency exchange | 101 | (56) | (5) | ||||||||||||||
| Change in fair value of investments and options | 62 | (47) | (46) | ||||||||||||||
| Gain (loss) on asset and investment sales (1) | 35 | (197) | 35 | ||||||||||||||
| Gain on debt extinguishment (2) | 32 | — | — | ||||||||||||||
| Insurance proceeds (3) | 12 | 37 | 14 | ||||||||||||||
| Pension settlements (4) | (1) | (9) | (137) | ||||||||||||||
| Other | 32 | 36 | 34 | ||||||||||||||
| Other income (loss), net | $ | 425 | $ | (88) | $ | (27) |
____________________________
(1)Primarily consists of the gain on sale of the Stream Credit Facility Agreement ("SCFA") of $49 partially offset by the loss of $29 related to the abandonment of the near-pit sizing and conveying system at Peñasquito for the year ended December 31, 2024; the loss of $235 related to the abandonment of the pyrite leach plant at Peñasquito for the year ended December 31, 2023; and the sale of the Company's 18.75% interest in Minera Agua Rica Alumbrera Limited ("MARA") for $61 for the year ended December 31, 2022.
(2)In 2024, the Company partially redeemed certain Senior Notes, resulting in a gain on extinguishment of $38, which is partially offset by the acceleration of $6 loss from Accumulated other comprehensive income (loss) related to the previously terminated interest rate cash flow hedges. Refer to Note 20 for additional information.
(3)For the year ended December 31, 2024, primarily consists of insurance proceeds received of $12 related to a conveyor failure at Ahafo. For the year ended December 31, 2023, primarily consists of insurance proceeds received of $45 and $11 related to Tanami due to significant rainfall and flooding in early 2023 and a conveyor failure at Ahafo, respectively. Of these amounts, $31 and $6, respectively, were recognized in Other income (loss), net, and primarily relate to business interruption coverage. The remaining amounts were recognized within Costs applicable to sales.
(4)Primarily represents pension settlement charges due to the pension annuitization in 2022 and lump sum payments to participants. For additional information regarding pension and other post-employment benefits, refer to Note 11.
NOTE 10 INCOME AND MINING TAXES
The Company’s Income and mining tax benefit (expense) consisted of:
| Year Ended December 31, | |||||||||||||||||
| 2024 | 2023 | 2022 | |||||||||||||||
| Current: | |||||||||||||||||
| United States | $ | (93) | $ | (20) | $ | (47) | |||||||||||
| Foreign | (1,224) | (610) | (686) | ||||||||||||||
| (1,317) | (630) | (733) | |||||||||||||||
| Deferred: | |||||||||||||||||
| United States | (157) | 62 | 236 | ||||||||||||||
| Foreign | 77 | 42 | 42 | ||||||||||||||
| (80) | 104 | 278 | |||||||||||||||
| Income and mining tax benefit (expense) | $ | (1,397) | $ | (526) | $ | (455) |
The Company’s Income (loss) before income and mining tax and other items consisted of:
| Year Ended December 31, | |||||||||||||||||
| 2024 | 2023 | 2022 | |||||||||||||||
| United States | $ | 536 | $ | 111 | $ | (566) | |||||||||||
| Foreign | 4,041 | (2,142) | 515 | ||||||||||||||
| Income (loss) before income and mining tax and other items | $ | 4,577 | $ | (2,031) | $ | (51) |
NEWMONT CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(dollars in millions, except per share, per ounce and per pound amounts)
The Company’s Income and mining tax benefit (expense) differed from the amounts computed by applying the United States statutory corporate income tax rate for the following reasons:
| Year Ended December 31, | |||||||||||||||||||||||||||||||||||
| 2024 | 2023 | 2022 | |||||||||||||||||||||||||||||||||
| Income (loss) before income and mining tax and other items | $ | 4,577 | $ | (2,031) | $ | (51) | |||||||||||||||||||||||||||||
| U.S. Federal statutory tax rate | 21 | % | (961) | 21 | % | 427 | 21 | % | 11 | ||||||||||||||||||||||||||
| Reconciling items: | |||||||||||||||||||||||||||||||||||
| Percentage depletion | (1) | 63 | 4 | 72 | 90 | 46 | |||||||||||||||||||||||||||||
| Change in valuation allowance on deferred tax assets | (8) | 302 | (18) | (358) | (569) | (290) | |||||||||||||||||||||||||||||
| Rate differential for foreign earnings indefinitely reinvested | 9 | (398) | 7 | 148 | (151) | (77) | |||||||||||||||||||||||||||||
| Mining and other taxes (net of associated federal benefit) | 5 | (237) | (4) | (87) | (231) | (118) | |||||||||||||||||||||||||||||
| Uncertain tax positions (1) | (1) | 63 | 1 | 28 | 261 | 133 | |||||||||||||||||||||||||||||
| Akyem recognition of DTL for assets held for sale | 1 | (49) | — | — | — | — | |||||||||||||||||||||||||||||
| Goodwill write-downs | — | — | (25) | (498) | (482) | (246) | |||||||||||||||||||||||||||||
| Expiration of U.S. capital losses and foreign tax credits | 1 | (47) | (10) | (195) | (61) | (31) | |||||||||||||||||||||||||||||
| Transactions | — | — | — | (1) | 100 | 51 | |||||||||||||||||||||||||||||
| Other (2) | 4 | (133) | (2) | (62) | 130 | 66 | |||||||||||||||||||||||||||||
| Income and mining tax benefit (expense) | 31 | % | $ | (1,397) | (26) | % | $ | (526) | (892) | % | $ | (455) |
____________________________
(1)Includes net tax benefit of $125, primarily consisting of a reduction in the related uncertain tax position of $95 and a valuation release of $29 for the full settlement with the Mexican Tax Authority entered into during the second quarter of 2022.
(2)Primarily consists of the impact of foreign exchange and earnings, the U.S. tax effect of minority interest attributable to non-U.S. investees, and the impact of return to provision adjustments.
Factors that Significantly Impact Effective Tax Rate (Other than Factors Described Separately Below)
Percentage depletion allowances (tax deductions for depletion that may exceed the tax basis in the mineral reserves) are available to the Company under the income tax laws of the United States for operations conducted in the United States or through branches and partnerships owned by U.S. subsidiaries included in the consolidated United States income tax return. These deductions are highly sensitive to the price of gold and other metals produced by the Company.
The Company operates in various jurisdictions around the world that have statutory tax rates that are significantly different than those of the U.S. These differences combine to move the overall effective tax rate higher than the U.S. statutory rate.
Mining taxes in Nevada, Mexico, Canada, Peru, and Australia 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.
In the U.S., capital losses may be carried forward five years to offset capital gains. Capital loss carryforwards of $222, $—, and $—, expired in 2024, 2023 and 2022, respectively. The Company carries a full valuation allowance on U.S. capital losses.
In 2024, 2023, and 2022, the U.S. had foreign tax credits of $—, $193, and $31, respectively, expire.
NEWMONT CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(dollars in millions, except per share, per ounce and per pound amounts)
Components of the Company's deferred income tax assets (liabilities) are as follows:
| At December 31, | |||||||||||
| 2024 | 2023 | ||||||||||
| Deferred income tax assets: | |||||||||||
| Property, plant and mine development | $ | 887 | $ | 746 | |||||||
| Inventory | 132 | 320 | |||||||||
| Reclamation and remediation | 2,077 | 2,362 | |||||||||
| Net operating losses, capital losses and tax credits | 2,297 | 2,655 | |||||||||
| Employee-related benefits | 24 | 97 | |||||||||
| Derivative instruments and unrealized loss on investments | 79 | 69 | |||||||||
| Foreign exchange and financing obligations | 58 | 86 | |||||||||
| Silver streaming agreement | 253 | 332 | |||||||||
| Other | 555 | 643 | |||||||||
| 6,362 | 7,310 | ||||||||||
| Valuation allowances | (4,363) | (4,652) | |||||||||
| $ | 1,999 | $ | 2,658 | ||||||||
| Deferred income tax liabilities: | |||||||||||
| Property, plant and mine development | $ | (3,749) | $ | (4,425) | |||||||
| Inventory | (132) | (160) | |||||||||
| Investment in partnerships and subsidiaries | (582) | (579) | |||||||||
| Other | (232) | (213) | |||||||||
| (4,695) | (5,377) | ||||||||||
| Net deferred income tax assets (liabilities) | $ | (2,696) | $ | (2,719) |
These amounts reflect the classification and presentation that is reported for each tax jurisdiction in which the Company operates.
Valuation of Deferred Tax Assets
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 the Company's projections for future growth. However, the amount of the deferred tax asset considered realizable could be adjusted if estimates of future taxable income during the carryforward period are increased, if objective negative evidence in the form of cumulative losses is no longer present or if additional weight were given to subjective evidence such as the Company's projections for growth.
During 2024, the Company recorded a decrease to the valuation allowance of $302 and a corresponding tax benefit, primarily driven by decreases in the net deferred tax asset in Argentina, the valuation allowance on Canada's tax credits and property, plant and mine development, and the release associated with the expiration of capital loss carryforwards. There were additional valuation allowance established as a result of purchase accounting for the Newcrest transaction of $168.
Refer to Note 2 for additional risk factors that could impact the Company’s ability to realize the deferred tax assets.
Tax Loss Carryforwards, Foreign Tax Credits, and Canadian Tax Credits
At December 31, 2024 and 2023, the Company had (i) $2,005 and $3,678 of net operating loss carry forwards, respectively; and (ii) $414 and $513 of tax credit carry forwards, respectively. At December 31, 2024 and 2023, $760 and $989, respectively, of net operating loss carry forwards are attributable to the U.S., Australia, and France for which current tax law provides no expiration period. The net operating loss carry forward in Canada of $772 will expire by 2043. The net operating loss carryforward in Mexico of $173 will expire by 2033. The net operating loss carry forward in other countries is $300.
Tax credit carry forwards for 2024 and 2023 of $414 and $284, respectively, consist of foreign tax credits available in the United States; substantially all such credits not utilized will expire at the end of 2029, and of solar tax credit for 2024 and 2023 of $27 and $19, respectively, which will expire by 2046. Canadian tax credits for 2024 and 2023 of $77 and $210, respectively, consist of investment tax credits and minimum mining tax credits. Canadian investment tax credits for 2024 consisted of $72 which will substantially expire by 2043, and mining tax credits of $5 which will expire by 2042.
NEWMONT CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(dollars in millions, except per share, per ounce and per pound amounts)
Company’s Unrecognized Tax Benefits
A reconciliation of the beginning and ending amount of gross unrecognized tax benefits, exclusive of interest and penalties, is as follows:
| 2024 | 2023 | 2022 | |||||||||||||||
| Total amount of gross unrecognized tax benefits at beginning of year | $ | 144 | $ | 190 | $ | 245 | |||||||||||
| Additions (reductions) for tax positions of prior years | (8) | 13 | (1) | ||||||||||||||
| Additions for tax positions of current year | — | 2 | — | ||||||||||||||
| Reductions due to settlements with taxing authorities | (2) | (18) | (53) | ||||||||||||||
| Reductions due to lapse of statute of limitations | (23) | (43) | (1) | ||||||||||||||
| Total amount of gross unrecognized tax benefits at end of year | $ | 111 | $ | 144 | $ | 190 |
At December 31, 2024, 2023, and 2022, $125, $190, and $219, respectively, represent the amount of unrecognized tax benefits, inclusive of interest and penalties that, if recognized, would impact the Company’s effective income tax rate.
The Company operates in numerous countries around the world and is subject to, and pays annual income taxes under, the various income tax regimes in the countries in which it operates. Some of these tax regimes are defined by contractual agreements with the local government, and others are defined by the general corporate income tax laws of the country. The Company has historically filed, and continues to file, all required income tax returns and paid the taxes reasonably determined to be due. The tax rules and regulations in many countries are highly complex and subject to interpretation. From time to time, the Company is subject to a review of its historic income tax filings and in connection with such reviews, disputes can arise with the taxing authorities over the interpretation or application of certain rules to the Company’s business conducted within the country involved.
Through the due diligence and integration processes, the Company has not identified new uncertain tax positions as a result of the Newcrest transaction.
The Australian Taxation Office (“ATO”) is conducting a limited review of the Company’s prior year tax returns. The ATO is reviewing an internal reorganization executed in 2011 when Newmont completed a restructure of the shareholding in the Company’s Australian subsidiaries. To date, the Company has responded to inquiries from the ATO and provided them with supporting documentation for the transaction and the Company’s associated tax positions. One aspect of the ATO review relates to an Australian capital gains tax that applies to sales or transfers of stock in certain types of entities. In the fourth quarter of 2017, the ATO notified the Company that it believes the 2011 reorganization is subject to capital gains tax of approximately $85 (including interest and penalties). The Company disputes this conclusion and is vigorously defending its position that the transaction is not subject to this tax. In the fourth quarter of 2017, the Company made a $24 payment to the ATO and lodged an Appeal with the Australian Federal Court. The court proceedings were held during the third quarter of 2024 and the Company is currently awaiting the judgment, which is expected during the second quarter of 2025.
In the third quarter of 2022, the Administración Federal de Ingresos Públicos ("AFIP") in Argentina notified the Company that it completed the 2016 transfer pricing review. The AFIP has questioned the Company’s treatment of intercompany loans and believes they should be akin to capital contributions. In the fourth quarter of 2024, while the Company still believes in the merits of the position, it has opted into Argentina's newly implemented Tax Amnesty Program and made a settlement payment of $8 in 2024 with the remaining $26 to be paid in early 2025. The Tax Amnesty Program reduces the tax penalties and alleviates potential criminal charges.
The Company and/or subsidiaries file income tax returns in the U.S. Federal jurisdiction, and various state and foreign jurisdictions. With few exceptions, the Company is no longer subject to U.S. Federal, state and local, and non-U.S. income tax examinations by tax authorities for years before 2016. As a result of (i) statute of limitations that will begin to expire within the next 12 months in various jurisdictions, and (ii) possible settlements of audit-related issues with taxing authorities in various jurisdictions, the Company believes that it is reasonably possible that the total amount of its unrecognized income tax liability will decrease between $10 and $30 in the next 12 months.
The Company’s practice is to recognize interest and/or penalties related to unrecognized tax benefits as part of Income and mining tax benefit (expense). At December 31, 2024 and 2023, the total amount of accrued income-tax-related interest and penalties included in the Consolidated Balance Sheets was $47 and $78, respectively. During 2024, 2023, and 2022 the Company released $31, increased $1, and released $61 of interest and penalties, respectively, through the Consolidated Statements of Operations.
Other
No additional income taxes have been provided for any remaining undistributed foreign earnings not subject to the transition tax, or any additional outside basis difference inherent in these entities, as these amounts continue to be indefinitely reinvested in foreign operations.
NEWMONT CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(dollars in millions, except per share, per ounce and per pound amounts)
NOTE 11 EMPLOYEE-RELATED BENEFITS
| At December 31, | |||||||||||
| 2024 | 2023 | ||||||||||
| Current: | |||||||||||
| Accrued payroll and withholding taxes | $ | 461 | $ | 477 | |||||||
| Workers’ participation and other bonuses | 108 | 10 | |||||||||
| Accrued severance | 19 | 13 | |||||||||
| Other post-retirement benefit plans | 11 | 11 | |||||||||
| Employee pension benefits | 5 | 6 | |||||||||
| Other employee-related payables | 26 | 34 | |||||||||
| $ | 630 | $ | 551 | ||||||||
| Non-current: | |||||||||||
| Accrued severance | $ | 386 | $ | 439 | |||||||
| Other post-retirement benefit plans | 55 | 66 | |||||||||
| Employee pension benefits | 29 | 35 | |||||||||
| Other employee-related payables | 85 | 115 | |||||||||
| $ | 555 | $ | 655 |
Pension and Other Benefit Plans
The Company provides a defined benefit pension plan to eligible employees. Benefits are generally based on years of service and the employee’s annual compensation. Various international pension plans are based on local laws and requirements. Pension costs are determined annually by independent actuaries and pension contributions to the U.S. qualified plans are made based on funding standards established under the Employee Retirement Income Security Act of 1974, as amended.
The following tables provide a reconciliation of changes in the plans’ benefit obligations and assets’ fair values for 2024 and 2023:
| Pension Benefits | Other Benefits | ||||||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
| Change in benefit obligation: | |||||||||||||||||||||||
| Benefit obligation at beginning of year | $ | 325 | $ | 311 | $ | 71 | $ | 66 | |||||||||||||||
| Service cost | 14 | 12 | 1 | 1 | |||||||||||||||||||
| Interest cost | 17 | 17 | 4 | 4 | |||||||||||||||||||
| Actuarial loss (gain) | (14) | 17 | (10) | 4 | |||||||||||||||||||
| Foreign currency exchange (gain) loss | (6) | 3 | (2) | — | |||||||||||||||||||
| Benefits paid | (20) | (7) | (4) | (4) | |||||||||||||||||||
| Amendments | — | 2 | — | — | |||||||||||||||||||
| Settlement payments | (3) | (30) | — | — | |||||||||||||||||||
| Projected benefit obligation at end of year | $ | 313 | $ | 325 | $ | 60 | $ | 71 | |||||||||||||||
| Accumulated benefit obligation | $ | 294 | $ | 306 | $ | 60 | $ | 71 | |||||||||||||||
| Change in fair value of assets: | |||||||||||||||||||||||
| Fair value of assets at beginning of year | $ | 322 | $ | 311 | $ | — | $ | — | |||||||||||||||
| Actual return (loss) on plan assets | 11 | 32 | — | — | |||||||||||||||||||
| Foreign currency exchange gain (loss) | (4) | 2 | — | — | |||||||||||||||||||
| Employer contributions | 7 | 14 | 4 | 4 | |||||||||||||||||||
| Benefits paid | (20) | (7) | (4) | (4) | |||||||||||||||||||
| Settlement payments | (3) | (30) | — | — | |||||||||||||||||||
| Fair value of assets at end of year | $ | 313 | $ | 322 | $ | — | $ | — | |||||||||||||||
| (Unfunded) funded status, net: | $ | — | $ | (3) | $ | (60) | $ | (71) | |||||||||||||||
| Amounts recognized in the Consolidated Balance Sheets: | |||||||||||||||||||||||
| Other non-current assets (1) | $ | 37 | $ | 38 | $ | — | $ | — | |||||||||||||||
| Employee-related benefits, current | (5) | (6) | (5) | (6) | |||||||||||||||||||
| Employee-related benefits, non-current (1) | (32) | (35) | (55) | (65) | |||||||||||||||||||
| Net amounts recognized | $ | — | $ | (3) | $ | (60) | $ | (71) |
____________________________
(1)Includes $4 of non-current assets and $3 of non-current liabilities related to the pension plan at Porcupine that were reclassified to Assets held for sale and Liabilities held for sale as of December 31, 2024.
NEWMONT CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(dollars in millions, except per share, per ounce and per pound amounts)
The Company’s qualified pension plan is funded with cash contributions in compliance with Internal Revenue Service rules and regulations. The Company’s non-qualified and other benefit plans are currently not funded, but exist as general corporate obligations. The information contained in the above tables presents the combined funded status of qualified and non-qualified plans. The Company reviews its retirement benefit programs on a regular basis and will consider market conditions and the funded status of its qualified pension plans in determining whether additional contributions are appropriate in calendar year 2025.
As of December 31, 2024 and 2023, all pension benefit plans had accumulated benefit obligations and projected benefit obligations in excess of the fair value of assets with the exception of one defined benefit pension plan in the U.S. and one defined benefit pension plan in Canada. The fair value of the plan assets associated with these pension benefit plans was in excess of the related accumulated benefit obligations and projected benefit obligations. The following table provides information for the Company's defined benefit pensions plans that had aggregate accumulated benefit obligations and projected benefit obligations in excess of plan assets at December 31:
| Pension Benefits (1) | |||||||||||
| 2024 | 2023 | ||||||||||
| Projected benefit obligation | $ | 39 | $ | 42 | |||||||
| Accumulated benefit obligation | $ | 32 | $ | 35 | |||||||
| Fair value of plan assets | $ | 2 | $ | 1 |
____________________________
(1)Information for other benefit plans with an accumulated benefit obligations in excess of plan assets has not been included as all of the other benefit plans are unfunded.
The significant assumptions used in measuring the Company’s benefit obligation were mortality assumptions and discount rate.
The mortality assumptions used to measure the pension and other post retirement obligation incorporate future mortality improvements from tables published by the Society of Actuaries ("SOA"). In 2024 and 2023, the SOA announced they would not release a new generational projection scale for the related years and instead updated the Mortality Improvement Model ("MIM") tool with the ability to optionally input mortality loads to model differing viewpoints of the ongoing effect of COVID. The Company utilized the Pri-2012 mortality tables and the MP-2021 generational projection scales, with no adjustment for COVID due to the Company not experiencing material mortality gain due to COVID, to measure the pension and other post retirement obligations as of December 31, 2024 and 2023.
Yield curves matching the Company’s benefit obligations were derived using a model based on high quality corporate bond data from Bloomberg. The model develops a discount rate by selecting a portfolio of high quality corporate bonds whose projected cash flows match the projected benefit payments of the plan. The resulting curves were used to identify a weighted average discount rate for the Company of 5.77% and 5.33% at December 31, 2024 and 2023, respectively, based on the timing of future benefit payments.
Actuarial (gain) loss of $(24) and $21 was recognized in the years ended December 31, 2024 and 2023, respectively, primarily due to a change in discount rate from the prior year.
Settlement accounting is required when annual lump sum payments exceed the annual interest and service costs for a plan and results in a remeasurement of the related pension benefit obligation and plan assets and the recognition of settlement charges in Other income (loss), net due to the acceleration of a portion of unrecognized actuarial losses. Lump sum payments are primarily made from the plan assets. Settlement accounting was triggered for the periods ended December 31, 2024, 2023 and 2022 resulting in pension settlement charges of $1, $9 and $137, respectively.
For the period ended December 31, 2022, pension settlement charges primarily resulted from the Company executing an annuitization to transfer a portion of the pension plan obligations from the Company's U.S. qualified defined benefit pension plans to an insurance company using plan assets during the first quarter of 2022. As a result, $527 of the previously recognized pension obligations were transferred and settlement accounting was triggered which resulted in the recognition of a non-cash settlement loss of $130 in Other income (loss), net. In December 2022, the Company received the final true-up from the insurance company for the annuitization, which had an inconsequential impact on the settlement.
NEWMONT CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(dollars in millions, except per share, per ounce and per pound amounts)
The following table provides the net pension and other benefits amounts recognized in Accumulated other comprehensive income (loss):
| Pension Benefits | Other Benefits | ||||||||||||||||||||||
| At December 31, | At December 31, | ||||||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
| Accumulated other comprehensive income (loss): | |||||||||||||||||||||||
| Net actuarial gain (loss) | $ | (71) | $ | (76) | $ | 33 | $ | 24 | |||||||||||||||
| Prior service credit | 2 | 4 | — | 1 | |||||||||||||||||||
| (69) | (72) | 33 | 25 | ||||||||||||||||||||
| Less: Income taxes | 15 | 16 | (7) | (5) | |||||||||||||||||||
| Total | $ | (54) | $ | (56) | $ | 26 | $ | 20 |
The following table provides components of the total benefit cost (income), inclusive of the net periodic pension and other benefits costs (credits):
| Pension Benefit Costs (Credits) | Other Benefit Costs (Credits) | ||||||||||||||||||||||||||||||||||
| Years Ended December 31, | Years Ended December 31, | ||||||||||||||||||||||||||||||||||
| 2024 | 2023 | 2022 | 2024 | 2023 | 2022 | ||||||||||||||||||||||||||||||
| Pension benefit cost (income), net: (1) | |||||||||||||||||||||||||||||||||||
| Service cost | $ | 14 | $ | 12 | $ | 15 | $ | 1 | $ | 1 | $ | 1 | |||||||||||||||||||||||
| Interest cost | 17 | 17 | 19 | 4 | 4 | 3 | |||||||||||||||||||||||||||||
| Expected return on plan assets | (24) | (23) | (35) | — | — | — | |||||||||||||||||||||||||||||
| Amortization, net | 1 | (7) | 2 | (2) | (2) | (3) | |||||||||||||||||||||||||||||
| Net periodic benefit cost (income) | 8 | (1) | 1 | 3 | 3 | 1 | |||||||||||||||||||||||||||||
| Settlement cost | 1 | 9 | 137 | — | — | — | |||||||||||||||||||||||||||||
| Total benefit cost (income) | $ | 9 | $ | 8 | $ | 138 | $ | 3 | $ | 3 | $ | 1 |
____________________________
(1)Service costs are included in Costs applicable to sales or General and administrative and the other components of benefit costs are included in Other income (loss), net.
The following table provides the components recognized in Other comprehensive income (loss):
| Pension Benefits | Other Benefits | ||||||||||||||||||||||||||||||||||
| Year Ended December 31, | Year Ended December 31, | ||||||||||||||||||||||||||||||||||
| 2024 | 2023 | 2022 | 2024 | 2023 | 2022 | ||||||||||||||||||||||||||||||
| Net loss (gain) | $ | (1) | $ | 8 | $ | (20) | $ | (10) | $ | 3 | $ | (20) | |||||||||||||||||||||||
| Amortization, net | (1) | 7 | (2) | 2 | 2 | 3 | |||||||||||||||||||||||||||||
| Prior service cost | — | 2 | — | — | — | — | |||||||||||||||||||||||||||||
| Settlements | (1) | (9) | (137) | — | — | — | |||||||||||||||||||||||||||||
| Total recognized in other comprehensive income (loss) | $ | (3) | $ | 8 | $ | (159) | $ | (8) | $ | 5 | $ | (17) | |||||||||||||||||||||||
| Total benefit cost (credit) and other comprehensive income (loss) | $ | 6 | $ | 16 | $ | (21) | $ | (5) | $ | 8 | $ | (16) |
Actuarial losses in excess of 10 percent of the greater of the projected benefit obligation or market-related value of plan assets are amortized over the expected average remaining future service period of the current active participants.
NEWMONT CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(dollars in millions, except per share, per ounce and per pound amounts)
The significant assumptions used in measuring the Company’s Total benefit cost (income) and Other comprehensive income (loss) were discount rate and expected return on plan assets:
| Pension Benefits | Other Benefits | ||||||||||||||||||||||||||||||||||
| Year Ended December 31, | Year Ended December 31, | ||||||||||||||||||||||||||||||||||
| 2024 | 2023 | 2022 | 2024 | 2023 | 2022 | ||||||||||||||||||||||||||||||
| Weighted average assumptions used in measuring the net periodic benefit cost: | |||||||||||||||||||||||||||||||||||
| Discount rate (1) | 5.33 | % | 5.63 | % | 4.09 | % | 6.09 | % | 6.10 | % | 3.03 | % | |||||||||||||||||||||||
| Expected return on plan assets | 7.09 | % | 6.38 | % | 6.75 | % | N/A | N/A | N/A |
____________________________
(1)Total benefit cost (income) and other comprehensive income (loss) for the Company's U.S. qualified defined benefit pension plan was remeasured due to the settlement accounting required from the retiree annuity purchase on March 25, 2022. The discount rate used for determining the Total benefit cost (income) and other comprehensive income (loss) reflected 3.03% from January 1, 2022 through March 25, 2022 and 4.09% from March 26, 2022 through December 31, 2022.
The expected long-term return on plan assets used for each period in the three years ended December 31, 2024 was determined based on an analysis of the asset returns over multiple time horizons for the Company’s actual plan and for other comparable U.S. corporations. At December 31, 2024, Newmont has estimated the expected long-term return on the qualified pension plan's assets to be 7.20% which will be used in determining future net periodic benefit cost. The Company determines the long-term return on plan assets by considering the most recent capital market forecasts, the plans’ current asset allocation and the actual return on plan assets in comparison to the expected return on assets. The average actual return on the qualified pension plan's assets during the 36 years ended December 31, 2024 approximated 7.52%.
Newmont has two pension calculations for salaried U.S. employees. The first is a “Final Average Pay” pension calculation which is defined as a monthly annuity at age 62 based, in part, on their highest five year eligible earnings and years of credited service. The second is the “Stable Value” calculation which is defined as a lump sum payment to employees upon retirement. The amount of the lump sum is the total of annual accruals based on the employee’s eligible earnings and years of service. The benefits accrued under the Final Average Pay formula were frozen on June 30, 2014 for those eligible employees. Beginning July 1, 2014, all future accruals are based on the terms and features of the Stable Value calculation.
The assumed health care trend rate used to measure the expected cost of benefits is 6.50% in 2025 and decreases gradually each year to 5.00% in 2031, which is used thereafter.
The qualified pension plan employs an independent investment firm which invests the assets of the plans in certain approved funds that correspond to specific asset classes with associated target allocations. The goal of the pension fund investment program is to achieve prudent actuarial funding ratios while maintaining acceptable risk levels. The investment performance of the plans and that of the individual investment firms is measured against recognized market indices. The performance of the pension funds are monitored by an investment committee comprised of members of the Company’s management, which is advised by an independent investment consultant. With the exception of global capital market economic risks, the Company has identified no significant portfolio risks associated to asset classes. The following is a summary of the target asset allocations for 2024 and the actual asset allocation at December 31, 2024:
| Asset Allocation | Target | Actual at December 31, 2024 | |||||||||
| Fixed income investments | 45 | % | 44 | % | |||||||
| World equity fund (U.S. and International equity investments) | 20 | % | 20 | % | |||||||
| International equity investments | 12 | % | 12 | % | |||||||
| U.S. equity investments | 11 | % | 11 | % | |||||||
| Real estate | 8 | % | 9 | % | |||||||
| High yield fixed income investments | 4 | % | 4 | % | |||||||
| Cash equivalents | — | % | — | % |
Cash equivalent instruments are classified within Level 1 of the fair value hierarchy because they are valued using quoted market prices in active markets and are primarily invested in money market securities and U.S. Treasury securities.
Commingled fund investments are managed by several fund managers and are valued at the net asset value per share for each fund. Although the majority of the underlying assets in the funds consist of actively traded equity securities and bonds, the unit of account is considered to be at the fund level. These funds require less than a month’s notice for redemptions and can be redeemed at the net asset value per share.
NEWMONT CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(dollars in millions, except per share, per ounce and per pound amounts)
The following table sets forth the Company’s pension plan assets measured at fair value:
| Fair Value at December 31, | |||||||||||
| 2024 | 2023 | ||||||||||
| Commingled Funds: | |||||||||||
| Fixed income investments | $ | 143 | $ | 152 | |||||||
| World equity fund (U.S. and International equity investments) | 54 | 54 | |||||||||
| International equity investments | 45 | 45 | |||||||||
| U.S. equity investments | 34 | 34 | |||||||||
| Real estate | 25 | 25 | |||||||||
| High yield fixed income investments | 11 | 11 | |||||||||
| 312 | 321 | ||||||||||
| Cash equivalents | 1 | 1 | |||||||||
| Total | $ | 313 | $ | 322 |
Cash Flows
Benefit payments expected to be paid to plan participants are as follows:
| Pension Plan | Other Benefits Plan | ||||||||||
| 2025 | $ | 21 | $ | 6 | |||||||
| 2026 | $ | 21 | $ | 6 | |||||||
| 2027 | $ | 21 | $ | 5 | |||||||
| 2028 | $ | 24 | $ | 5 | |||||||
| 2029 | $ | 24 | $ | 5 | |||||||
| Thereafter | $ | 131 | $ | 26 |
Savings Plans
The Company has one qualified defined contribution savings plan in the U.S. that covers salaried and hourly employees. When an employee meets eligibility requirements, the Company matches 100% of employee contributions of up to 6% of eligible earnings. Hourly employees receive an additional retirement contribution to the participant’s retirement contribution account equal to an amount which is paid and determined by the Company. Currently, the additional retirement contribution is 5% of eligible earnings. Matching contributions are made in cash. In addition, the Company has one non-qualified supplemental savings plan for executive-level employees whose benefits under the qualified plan are limited by federal regulations.
NOTE 12 STOCK-BASED COMPENSATION
The Company has stock incentive plans for directors, executives and eligible employees. Stock incentive awards include RSUs and PSUs. The Company issues new shares of common stock to satisfy vesting under all of its stock incentive awards. Prior to 2012, the Company also granted options to purchase shares of stock with exercise prices not less than fair market value of the underlying stock at the date of grant. At December 31, 2024, 18,993,357 shares were authorized for future stock incentive plan awards.
Restricted Stock Units
The Company grants RSUs to directors, executives and eligible employees. Awards are determined as a target percentage of base salary and, for eligible employees, are subject to a personal performance factor. For all RSU grants issued prior to February 2018, RSU awards vest on a straight-line basis over periods of three years or more, unless the employee becomes retirement eligible prior to the vesting date. If an employee becomes retirement eligible and retires prior to the vesting date, the remaining awards vest on a pro rata basis at the retirement date. Starting with the February 2018 grant, if the employee becomes retirement eligible at any point during the vesting period, the entire award is considered earned after the later of the one-year service period from the grant date or the retirement eligible date. Prior to vesting, holders of RSUs do not have the right to vote the underlying shares; however, directors, executives and eligible employees accrue dividend equivalents on their RSUs, which are paid at the time the RSUs vest. The accrued dividend equivalents are not paid if RSUs are forfeited. The RSUs are subject to forfeiture risk and other restrictions. Upon vesting, the employee is entitled to receive one share of the Company’s common stock for each restricted stock unit.
Performance Stock Units
In 2023 and 2024, the Company amended the PSU plan for eligible executives to incorporate awards that vest based on certain performance-related conditions in addition to the historically granted awards that vest based on certain market-related conditions.
NEWMONT CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(dollars in millions, except per share, per ounce and per pound amounts)
For market-related conditions, the awards vest after the three-year requisite service period based on the Company's total stockholder return compared to the return of a peer group. The grant date fair value of the awards are amortized on a straight-line basis over the required performance period.
The grant date fair value of the market-related conditions for each PSU granted in 2024, 2023 or 2022 was determined using a Monte Carlo valuation model, which requires the input of the following subjective assumptions:
| Year Ended December 31, | |||||||||||||||||
| 2024 | 2023 | 2022 | |||||||||||||||
| Risk-free interest rate | 4.40% | 4.45% | 1.61% | ||||||||||||||
| Volatility range | 17.50% - 76.70% | 34.24% - 81.36% | 31.78% - 81.77% | ||||||||||||||
| Weighted-average volatility | 47.71% | 55.24% | 54.89% | ||||||||||||||
| Expected term (years) | 3 | 3 | 3 | ||||||||||||||
| Weighted-average fair market value | $33.91 | $50.39 | $77.00 |
The risk-free interest rates are based on a U.S. Treasury yield curve in effect at the time of grant. Expected volatility is based on historical volatility of the Company's stock as well as the stock of the peer group for the three-year performance period.
For performance-related conditions, the awards vest based on the achievement of certain performance metrics which include (i) representation of women on executive team, (ii) Scope 1 and 2 emission reductions related to key milestone projects, and (iii) return on capital employed. The grant date fair value of the awards are amortized over the three-year requisite service period, based on the probability of the performance conditions being met.
The grant date fair value of the performance-related conditions for each PSU granted in 2024 was determined using the Company's stock price on the grant. The weighted-average fair market value for 2024 was $30.01.
Stock-Based Compensation Activity
A summary of the status and activity of non-vested RSUs and PSUs for the year ended December 31, 2024 is as follows:
| RSU | PSU | ||||||||||||||||||||||
| Number of Units | Weighted Average Grant-Date Fair Value | Number of Units | Weighted Average Grant-Date Fair Value | ||||||||||||||||||||
| Non-vested at beginning of year | 2,102,567 | $ | 48.95 | 1,193,535 | $ | 60.60 | |||||||||||||||||
| Granted | 2,509,780 | $ | 31.20 | 878,974 | $ | 28.00 | |||||||||||||||||
| Vested | (1,011,308) | $ | 50.60 | (173,982) | $ | 65.41 | |||||||||||||||||
| Forfeited | (322,569) | $ | 35.91 | (256,814) | $ | 48.22 | |||||||||||||||||
| Non-vested at end of year | 3,278,470 | $ | 36.13 | 1,641,713 | $ | 44.58 |
The total intrinsic value and fair value of RSUs that vested in 2024, 2023, and 2022 was $37, $36, and $62, respectively. The total intrinsic value and fair value of PSUs that vested in 2024, 2023, and 2022 was $6, $35, and $47, respectively.
Cash flows resulting from excess tax benefits are classified as part of cash flows from operating activities. Excess tax benefits are realized tax benefits from tax deductions for vested RSUs, settled PSUs, and exercised options in excess of the deferred tax asset attributable to stock compensation costs for such equity awards. The Company recorded $3 and $1 in tax deficiencies for the years ended December 31, 2024 and 2023, respectively, and $5 in excess tax benefits for the year ended December 31, 2022.
At December 31, 2024, there was $62 and $38 of unrecognized compensation costs related to the unvested RSUs and PSUs, respectively. This cost is expected to be recognized over a weighted average period of approximately two years.
The Company recognized stock-based compensation as follows:
| Year Ended December 31, | |||||||||||||||||
| 2024 | 2023 | 2022 | |||||||||||||||
| Restricted stock units | $ | 63 | $ | 52 | $ | 49 | |||||||||||
| Performance leveraged stock units | 20 | 24 | 24 | ||||||||||||||
| Other (1) | 6 | 4 | 3 | ||||||||||||||
| Total stock-based compensation | $ | 89 | $ | 80 | $ | 76 |
____________________________
(1)Other includes the Company's proportionate share of NGM stock compensation.
NEWMONT CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(dollars in millions, except per share, per ounce and per pound amounts)
NOTE 13 FAIR VALUE ACCOUNTING
Fair value accounting establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are described below:
Level 1 Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities;
Level 2 Quoted prices in markets that are not active, quoted prices for similar assets or liabilities in active markets, quoted prices or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability and model-based valuation techniques (e.g. the Black-Scholes model) for which all significant inputs are observable in the market or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and
Level 3 Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (supported by little or no market activity).
The following tables set forth the Company’s assets and liabilities measured at fair value on a recurring (at least annually) and nonrecurring basis by level within the fair value hierarchy. As required by accounting guidance, assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement.
| Fair Value at December 31, 2024 | |||||||||||||||||||||||
| Total | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||
| Assets: | |||||||||||||||||||||||
| Cash and cash equivalents (1) | $ | 3,619 | $ | 3,619 | $ | — | $ | — | |||||||||||||||
| Restricted cash | 31 | 31 | — | — | |||||||||||||||||||
| Trade receivables from provisional concentrate sales, net | 993 | — | 993 | — | |||||||||||||||||||
| Assets held for sale (Note 3) (2) | 1,840 | — | 1,168 | 672 | |||||||||||||||||||
| Equity method investments | 212 | 212 | — | — | |||||||||||||||||||
| Marketable and other equity securities (Note 15) | 305 | 305 | — | — | |||||||||||||||||||
| Restricted marketable debt securities (Note 15) | 15 | 15 | — | — | |||||||||||||||||||
| Derivative assets (Note 14) | 142 | — | — | 142 | |||||||||||||||||||
| Other assets (3) | 61 | — | — | 61 | |||||||||||||||||||
| $ | 7,218 | $ | 4,182 | $ | 2,161 | $ | 875 | ||||||||||||||||
| Liabilities: | |||||||||||||||||||||||
| Debt (4) | $ | 8,400 | $ | — | $ | 8,400 | $ | — | |||||||||||||||
| Derivative liabilities (Note 14) | 143 | — | 137 | 6 | |||||||||||||||||||
| Other liabilities (5) | 51 | — | 51 | — | |||||||||||||||||||
| $ | 8,594 | $ | — | $ | 8,588 | $ | 6 |
NEWMONT CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(dollars in millions, except per share, per ounce and per pound amounts)
| Fair Value at December 31, 2023 | |||||||||||||||||||||||
| Total | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||
| Assets: | |||||||||||||||||||||||
| Cash and cash equivalents (1) | $ | 3,002 | $ | 3,002 | $ | — | $ | — | |||||||||||||||
| Restricted cash | 98 | 98 | — | — | |||||||||||||||||||
| Trade receivables from provisional concentrate sales, net | 734 | — | 734 | — | |||||||||||||||||||
| Marketable and other equity securities (Note 15) | 252 | 243 | 9 | — | |||||||||||||||||||
| Restricted marketable debt securities (Note 15) | 21 | 21 | — | — | |||||||||||||||||||
| Derivative assets (Note 14) | 642 | — | 7 | 635 | |||||||||||||||||||
| $ | 4,749 | $ | 3,364 | $ | 750 | $ | 635 | ||||||||||||||||
| Liabilities: | |||||||||||||||||||||||
| Debt (4) | $ | 8,975 | $ | — | $ | 8,975 | $ | — | |||||||||||||||
| Derivative liabilities (Note 14) | 8 | — | 3 | 5 | |||||||||||||||||||
| $ | 8,983 | $ | — | $ | 8,978 | $ | 5 |
____________________________
(1)Cash and cash equivalents at December 31, 2024 and 2023 include term deposits that have an original maturity of three months or less.
(2)Assets held for sale at December 31, 2024 includes assets held for sale that were written down to their fair value, excluding costs to sell, of $1,840 at December 31, 2024. The aggregate fair value, excluding costs to sell, of net assets held for sale subject to fair value remeasurement was $679 at December 31, 2024.
(3)Consists of the contingent payments received through the Telfer Sale that do not meet the definition of a derivative and are considered to be a financial asset, for which the Company recorded at fair value at completion of the sale on December 4, 2024.
(4)Debt is carried at amortized cost. The outstanding carrying value was $8,476 and $8,874 at December 31, 2024 and December 31, 2023, respectively. The fair value measurement of debt was based on an independent third-party pricing source.
(5)Consists of the Greatland Option acquired through the Telfer Sale in the fourth quarter of 2024, refer to Notes 3 and 22 for further information.
The Company’s cash and cash equivalents and restricted cash are classified within Level 1 of the fair value hierarchy because they are valued using quoted market prices in active markets and are primarily money market securities and U.S. Treasury securities.
The Company’s net trade receivables from provisional metal concentrate sales, which contain an embedded derivative and are subject to final pricing, are valued using quoted market prices based on forward curves for the particular metal. As the contracts themselves are not traded on an exchange, these receivables are classified within Level 2 of the fair value hierarchy.
The Company's assets held for sale consist of the six non-core assets and a development project that met the accounting requirements to be presented as held for sale in the first quarter of 2024. The assets are classified as non-recurring within Level 2 and 3 of the fair value hierarchy. Assets held for sale classified as Level 3 in the fair value hierarchy include those with a definitive sales agreement containing Level 3 components, and those without a definitive sales agreement. All other assets held for sale are classified as Level 2 in the fair value hierarchy. Refer to Note 3 for further information.
The Company's equity method investments consist of the Greatland equity method investment, which was acquired through the Telfer Sale in the fourth quarter of 2024. The Greatland equity method investment is accounted for under the fair value option and is classified as Level 1 within the fair value hierarchy and is valued using published market prices of actively traded securities. Refer to Notes 3 and 15 for further information.
The Company’s marketable and other equity securities with readily determinable fair values are valued using quoted market prices in active markets and as such are classified within Level 1 of the fair value hierarchy. The fair value of the marketable equity securities are calculated as the quoted market price of the marketable equity security multiplied by the quantity of shares held by the Company.
The Company’s marketable and other equity securities without readily determinable fair values consists of the Company’s ownership in warrants in publicly traded companies. Warrants are valued using a Black-Scholes model using quoted market prices in active markets of the underlying securities. As the warrants themselves are not traded on the exchange, these equity securities are classified within Level 2 of the fair value hierarchy.
The Company’s restricted marketable debt securities are primarily U.S. government issued bonds and international bonds. The Company’s debt securities held at Yanacocha are classified within Level 1 of the fair value hierarchy, using published market prices of actively traded securities. The Company’s debt securities held at Corporate and Other are classified within Level 1 and Level 2 of the fair value hierarchy. The Level 1 debt securities are valued using published market prices of actively traded securities and the Level 2 debt securities are valued using pricing models which are based on published market inputs for similar, actively traded securities.
The Company’s derivative instruments consist of the Stream Credit Facility Agreement ("SCFA"), the Cadia Power Purchase Agreement ("Cadia PPA"), foreign currency fixed forward contracts, and contingent considerations accounted for as derivatives.
NEWMONT CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(dollars in millions, except per share, per ounce and per pound amounts)
The SCFA and the Cadia PPA were acquired as part of the Newcrest transaction and were not designated for hedge accounting under ASC 815 at December 31, 2023. At January 1, 2024, the Company designated the Cadia PPA for hedge accounting. Additionally, in the second quarter of 2024, the Company sold the SCFA.
The Cadia PPA is accounted for at fair value using probability weighted discounted cash flow models and is classified within Level 3 of the fair value hierarchy. The valuation model requires a variety of inputs including life of mine production profiles, forward power prices, forecasted power generation volume, discount rates, and inflation assumptions. The SCFA was accounted for at fair value using probability weighted discounted cash flow models and is classified within Level 3 of the fair value hierarchy at December 31, 2023. The valuation model required a variety of inputs including long-term metal prices, life of mine production profiles, and discount rates. Refer to Note 14 for further information.
The foreign currency fixed forward contracts are valued using pricing models based on forward curves. The Company’s foreign currency fixed forward derivatives trade in liquid markets, and as such, model inputs can generally be verified and do not involve significant management judgment. Such instruments are classified within Level 2 of the fair value hierarchy. Refer to Note 14 for further information.
The contingent consideration assets and liabilities, accounted for as derivatives, are classified within Level 3 of the fair value hierarchy. Changes in the discount rate will result in an inverse impact to the estimated fair value of the contingent consideration assets and liabilities. Refer to Note 14 for further information.
The Company's other assets recognized at fair value consist of the contingent payments acquired through the Telfer Sale in the fourth quarter of 2024. The contingent payments were accounted for at fair value at completion of the sale and are classified as non-recurring within Level 3 of the fair value hierarchy. Valuation models require a variety of inputs, including long-term metal prices, life of mine production profiles, and discount rates. Refer to Note 3 for further information.
The Company's other liabilities recognized at fair value consist of the Greatland Option, which was acquired through the Telfer Sale in the fourth quarter of 2024. The Greatland Option is accounted for under the fair value option and is classified as Level 2 within the fair value hierarchy and is valued using pricing models which are based on published market inputs for similar, actively traded securities. Refer to Notes 3 and 15 for further information.
The following tables set forth a summary of the quantitative and qualitative information related to the significant observable and unobservable inputs used in the calculation of the Company’s Level 3 financial assets and liabilities at December 31, 2024 and December 31, 2023:
| Description | At December 31, 2024 | Valuation technique | Significant input | Range, point estimate or average | Weighted Average Discount Rate | |||||||||||||||||||||||||||
| Assets held for sale | $ | 672 | Income approach | Various (1) | Various (1) | Various (1) | ||||||||||||||||||||||||||
| Derivative assets: | ||||||||||||||||||||||||||||||||
| Hedging instruments (2)(3) | $ | 94 | Income approach | Forward power prices | A$43.00- A$321.00 | 6.75% | ||||||||||||||||||||||||||
| Contingent consideration assets | $ | 47 | Income approach | Discount rate | 6.37% - 16.38% | 10.67% | ||||||||||||||||||||||||||
| Other assets | $ | 61 | Income approach | Discount rate | 6.60% | 6.60% | ||||||||||||||||||||||||||
| Derivative liabilities | $ | 5 | Income approach | Discount rate | 5.22% - 5.95% | 5.66% |
____________________________
(1)For assets held for sale for which a binding agreement was reached, the terms of the respective agreements were utilized to estimate the fair value and are considered to be a non-recurring fair value measurement under the income approach. For all other assets held for sale, refer to Note 3 for information on the assumptions and inputs specific to the non-recurring fair value measurement performed.
(2)The SCFA and the Cadia PPA, acquired as part of the Newcrest transaction, were not designated in a hedging relationship at December 31, 2023. At January 1, 2024, the Company designated the Cadia PPA for hedge accounting, and as a result is included within Hedging instruments at December 31, 2024. Additionally, in the second quarter of 2024, the Company sold the SCFA. Refer to Note 14 for further information.
(3)Hedging instruments consists of the net position of the Cadia PPA which is comprised of $1 is in a liability position and the non-current portion of $95 is in an asset position. The current liability portion is included in Derivative liabilities within the fair value hierarchy table and the non-current asset portion is included in Derivative assets within the fair value hierarchy table.
NEWMONT CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(dollars in millions, except per share, per ounce and per pound amounts)
| Description | At December 31, 2023 | Valuation technique | Significant input | Range, point estimate or average | Weighted Average Discount Rate | |||||||||||||||||||||||||||
| Derivative assets | ||||||||||||||||||||||||||||||||
| Derivative assets not designated for hedging | $ | 424 | Income approach | Discount rate | 6.28% - 10.50% | 9.03% | ||||||||||||||||||||||||||
| Contingent consideration assets | $ | 211 | Income approach | Discount rate | 8.04% - 26.43% | 11.18% | ||||||||||||||||||||||||||
| Derivative liabilities | $ | 5 | Income approach | Discount rate | 4.91% - 6.15% | 5.65% |
The following tables set forth a summary of changes in the fair value of the Company’s recurring Level 3 financial assets and liabilities:
| Derivative Assets (1) | Total Assets | Derivative Liabilities (2) | Total Liabilities | ||||||||||||||||||||
| Fair value at December 31, 2022 | $ | 188 | $ | 188 | $ | 3 | $ | 3 | |||||||||||||||
| Acquisitions | 424 | 424 | — | — | |||||||||||||||||||
| Revaluation gain (loss) | 23 | 23 | 2 | 2 | |||||||||||||||||||
| Fair value at December 31, 2023 | 635 | 635 | 5 | 5 | |||||||||||||||||||
| Settlements | (76) | (76) | — | — | |||||||||||||||||||
| Revaluation gain (loss) | (40) | (40) | 1 | 1 | |||||||||||||||||||
| Sales (3) | (377) | (377) | — | — | |||||||||||||||||||
| Fair value at December 31, 2024 | $ | 142 | $ | 142 | $ | 6 | $ | 6 |
____________________________
(1)In 2024, the gain (loss) recognized on revaluation of derivative assets of $2, $(53), and $11 are included in Other income (loss), net, Other comprehensive income (loss), and Net income (loss) from discontinued operations, respectively. In 2023, the gain recognized on revaluation on derivative assets of $1 and $22 are included in Other income (loss), net and Net income (loss) from discontinued operations, respectively.
(2)In 2024, the loss recognized on revaluation of derivative liabilities of $1 is included in Other comprehensive income (loss). In 2023, the loss recognized on revaluation of derivative liabilities of $2 is included in Other income (loss), net.
(3)In the second quarter of 2024, the Company sold the SCFA resulting in a decrease of $281. In the third quarter of 2024, the Company sold the Batu and Elang Contingent consideration assets resulting in a decrease of $96. Refer to Note 14 for further information.
NOTE 14 DERIVATIVE INSTRUMENTS
| At December 31, | |||||||||||
| 2024 | 2023 | ||||||||||
| Current derivative assets: | |||||||||||
| Derivative assets, not designated for hedging (1) | $ | — | $ | 115 | |||||||
| Contingent consideration assets (2) | — | 76 | |||||||||
| Hedging instruments | — | 7 | |||||||||
| $ | — | $ | 198 | ||||||||
| Non-current derivative assets: | |||||||||||
| Derivative assets, not designated for hedging (1) | $ | — | $ | 309 | |||||||
| Contingent consideration assets (2) | 47 | 135 | |||||||||
| Hedging instruments (1) | 95 | — | |||||||||
| $ | 142 | $ | 444 | ||||||||
| Current derivative liabilities: (3) | |||||||||||
| Contingent consideration liabilities | $ | 2 | $ | 3 | |||||||
| Hedging instruments (1) | 136 | — | |||||||||
| $ | 138 | $ | 3 | ||||||||
| Non-current derivative liabilities: (4) | |||||||||||
| Contingent consideration liabilities | $ | 5 | $ | 5 | |||||||
____________________________
(1)The SCFA and the Cadia PPA, acquired as part of the Newcrest transaction, were not designated in a hedging relationship at December 31, 2023. At January 1, 2024, the Company designated the Cadia PPA for hedge accounting, and as a result is included within Hedging instruments at December 31, 2024. Additionally, in the second quarter of 2024, the Company sold the SCFA. See below for further information.
(2)Contingent consideration assets at December 31, 2023 included the Batu Hijau and Elang contingent consideration assets, which were sold in the third quarter of 2024. Refer below for further information.
(3)Included in Other current liabilities.
(4)Included in Other non-current liabilities.
NEWMONT CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(dollars in millions, except per share, per ounce and per pound amounts)
Derivative Assets, Not Designated for Hedging
Stream Credit Facility Agreement ("SCFA")
The SCFA was a non-revolving credit facility in relation to the Fruta del Norte mine, which is wholly owned and operated by Lundin Gold Inc. ("Lundin Gold") in which the Company holds a 32.0% equity interest (refer to Note 15 for further information). The SCFA was a financial instrument that met the definition of a derivative and was accounted for at fair value using a probability weighted discounted cash flow model, but was not designated for hedge accounting under ASC 815. The fair value of the SCFA was $276 at December 31, 2023, of which $113 was recognized in current Derivative assets and $163 was recognized in non-current Derivative assets in the Company's Consolidated Balance Sheets.
In the second quarter of 2024, the Company completed the sale of the SCFA and Offtake agreement in which Lundin Gold repurchased the SCFA and settled the rights under the Offtake agreement for cash consideration of $330, of which $180 and $150 were received in June 2024 and September 2024, respectively. Refer to Note 15 for further information on the Offtake agreement. The sale resulted in a gain of $49 recognized in Other income (loss), net.
Hedging Instruments
Hedging instruments consisted of the foreign currency cash flow hedges and the Cadia PPA at December 31, 2024.
To minimize credit risk, the Company only enters into transactions with counterparties that meet certain credit requirements and periodically reviews the creditworthiness of these counterparties. The Company believes that the risk of counterparty default is low and its exposure to credit risk is minimal.
Foreign currency cash flow hedges
In June 2024, the Company initiated hedge programs utilizing foreign currency fixed forward contracts to mitigate variability in the USD functional cash flows, to be incurred between October 2024 and December 2025, related to (i) the AUD-denominated capital expenditures incurred during the construction and development phase of the Tanami Expansion 2, Cadia Panel Caves, and the Cadia Tailings Project; (ii) the AUD-denominated operating expenditures at the Boddington, Tanami, and Cadia operating mines located in Australia; and (iii) the CAD-denominated operating expenditures at the Brucejack and Red Chris operating mines located in Canada. The capital expenditures hedged for the Tanami Expansion 2 project under these fixed forward contracts will be for spend not covered by the hedges entered into in October 2022, as described below. The fixed forward contracts were transacted for risk management purposes and designated as foreign currency cash flow hedges. At December 31, 2024, the Company entered into A$1,126, A$2,232, and C$602 relating to the AUD-denominated capital expenditure program, the AUD-denominated operating expenditure program, and the CAD-denominated operating expenditure program respectively. Subsequent to December 31, 2024 and prior to filing, the Company entered into an additional A$80, A$354, and C$82 relating to the programs, respectively.
In May 2023, the Company entered into C$348 of CAD-denominated and A$648 of AUD-denominated fixed forward contracts to mitigate variability in the USD functional cash flows related to the CAD-denominated and AUD-denominated operating expenditures incurred between June and December 2023 included in the Company's operating mines located in Canada and Australia, respectively. The fixed forward contracts were transacted for risk management purposes and designated as foreign currency cash flow hedges. As of December 31, 2023, the hedge programs were matured and no related amounts remain in Accumulated other comprehensive income (loss).
In October 2022, the Company entered into A$574 of AUD-denominated fixed forward contracts to mitigate variability in the USD functional cash flows related to the AUD-denominated capital expenditures expected to be incurred in 2023 and 2024 during the construction and development phase of the Tanami Expansion 2 project included in the Company's Tanami segment. The fixed forward contracts were transacted for risk management purposes. The Company has designated the fixed forward contracts as foreign currency cash flow hedges against the forecasted AUD-denominated Tanami Expansion 2 capital expenditures. As of December 31, 2024, the hedge program matured and a gain of $7 remains in Accumulated other comprehensive income (loss).
The unrealized changes in fair value have been recorded in Accumulated other comprehensive income (loss) and are reclassified to income during the period in which the hedged transaction affects earnings and is presented in the same income statement line item as the earnings effect of the hedged item. If the underlying hedge transaction becomes probable of not occurring, the related amounts will be reclassified to earnings immediately. For the foreign currency cash flow hedges related to capital expenditures, amounts recorded in Accumulated other comprehensive income (loss) are reclassified to earnings through Depreciation and amortization after the project reaches commercial production. For the foreign currency cash flow hedges related to operating expenditures, amounts recorded in Accumulated other comprehensive income (loss) are reclassified to earnings through Costs applicable to sales in the month that the operating expenditures are incurred.
Cadia Power Purchase Agreement ("Cadia PPA")
The Cadia PPA is a 15-year renewable power purchase agreement acquired by the Company through the Newcrest transaction. The Cadia PPA will provide the Company with access to large scale generation certificates which the Company intends to
NEWMONT CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(dollars in millions, except per share, per ounce and per pound amounts)
surrender to achieve a reduction in its greenhouse gas emissions. The Cadia PPA is a financial instrument that meets the definition of a derivative under ASC 815 and is accounted for at fair value using a probability weighted discounted cash flow model. At January 1, 2024, the Company designated the Cadia PPA in a cash flow hedging relationship to mitigate the variability in cash flows related to approximately 40 percent of forecasted purchases of power at the Cadia mine for a 15 year period from the Cadia PPA's commercial operations date in the third quarter of 2024.
The unrealized changes in fair value have been recorded in Accumulated other comprehensive income (loss) and will be reclassified to income during the period in which the hedged transaction affects earnings and is presented in the same income statement line item as the earnings effect of the hedged item. If the underlying hedge transaction becomes probable of not occurring, the related amounts in Accumulated other comprehensive income (loss) will be reclassified to earnings immediately. For the Cadia PPA cash flow hedge, amounts recorded in Accumulated other comprehensive income (loss) will be reclassified to earnings through Costs applicable to sales each period in which electricity is purchased beginning the commercial operations date.
The following table provides the fair value of the Company’s derivative instruments designated as cash flow hedges:
| At December 31, | |||||||||||
| 2024 | 2023 | ||||||||||
| Hedging instrument assets: | |||||||||||
| Cadia PPA cash flow hedge, non-current (1)(2) | $ | 95 | $ | — | |||||||
| Foreign currency cash flow hedges, current (3) | — | 7 | |||||||||
| $ | 95 | $ | 7 | ||||||||
| Hedging instrument liabilities: | |||||||||||
| Foreign currency cash flow hedges, current (4) | $ | 135 | $ | — | |||||||
| Cadia PPA cash flow hedge, current (2)(4) | 1 | — | |||||||||
| $ | 136 | $ | — |
____________________________
(1)Included in non-current Derivative assets in the Company’s Consolidated Balance Sheets.
(2)At January 1, 2024, the Company designated the Cadia PPA for hedge accounting. As a result, the Cadia PPA is captured in Derivative instruments, not designated for hedging at December 31, 2023. See above for further information.
(3)Included in Derivative assets in the Company’s Consolidated Balance Sheets.
(4)Included in Other current liabilities in the Company's Consolidated Balance Sheets.
The following table provides the losses (gains) recognized in earnings related to the Company's derivative instruments designated for hedging:
| Year Ended December 31, | |||||||||||||||||
| 2024 | 2023 | 2022 | |||||||||||||||
| Loss (gain) on cash flow hedges: | |||||||||||||||||
| Interest rate contracts (1) | $ | 10 | $ | 5 | $ | 6 | |||||||||||
| Foreign currency cash flow hedges (2) | 7 | 19 | — | ||||||||||||||
| Cadia PPA cash flow hedge (3) | 5 | — | — | ||||||||||||||
| $ | 22 | $ | 24 | $ | 6 |
____________________________
(1)Interest rate contracts relate to swaps entered into, and subsequently settled, associated with the issuance of the 2022 Senior Notes, 2035 Senior Notes, 2039 Senior Notes, and 2042 Senior Notes. The related gains and losses are reclassified from Accumulated other comprehensive income (loss) and amortized to Interest expense, net of capitalized interest over the term of the respective hedged notes. During the year ended December 31, 2024, $6 was reclassified to Other income (loss), net as a result of the redemption and tender offers of the 2042 Senior Notes. Refer to Note 20 for additional information.
(2)As of December 31, 2024, approximately $95 is expected to be reclassified out of Accumulated other comprehensive income (loss) into earnings over the next 12 months.
(3)As of December 31, 2024, approximately $10 is expected to be reclassified out of Accumulated other comprehensive income (loss) into earnings over the next 12 months.
Contingent Consideration Assets and Liabilities
Contingent consideration assets and liabilities are comprised of contingent consideration to be received or paid by the Company in conjunction with various sales of assets and investments with future payment contingent upon meeting certain milestones. These contingent consideration assets and liabilities are accounted for at fair value and consist of financial instruments that meet the definition of a derivative, but are not designated for hedge accounting under ASC 815. Refer to Note 13 for further information regarding the fair value of the contingent consideration assets and liabilities.
NEWMONT CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(dollars in millions, except per share, per ounce and per pound amounts)
The Company had the following contingent consideration assets and liabilities at December 31, 2024 and 2023:
| At December 31, | |||||||||||
| 2024 | 2023 | ||||||||||
| Contingent Consideration Assets: | |||||||||||
| Red Lake (1) | $ | 36 | $ | 39 | |||||||
| Batu Hijau and Elang (2) | — | 161 | |||||||||
| Other (1) | 11 | 11 | |||||||||
| $ | 47 | $ | 211 | ||||||||
| Contingent Consideration Liabilities: (3) | $ | 7 | $ | 8 |
____________________________
(1)Included in non-current Derivative assets.
(2)The Batu Hijau and Elang contingent consideration assets were sold in the third quarter of 2024. Refer below for further information. At December 31, 2023, $76 is included in current Derivative assets and $85 is included in non-current Derivative assets.
(3)At December 31, 2024, $2 and $5 is included in Other current liabilities and Other non-current liabilities, respectively. At December 31, 2023, $3 and $5 is included in Other current liabilities and Other non-current liabilities, respectively.
Batu Hijau and Elang Contingent Consideration Assets
The Batu Hijau and Elang contingent consideration assets relate to the sale of PT Newmont Nusa Tenggara in 2016. In the third quarter of 2024, the Company completed the sale of the Batu and Elang contingent consideration assets for cash consideration of $153. As a result of the sale, the Company recognized a tax benefit of $37 due to the release of the valuation allowance and a gain of $15, partially offset by a related tax impact of $3, recognized in Net income (loss) from discontinued operations.
NOTE 15 INVESTMENTS
| At December 31, | |||||||||||
| 2024 | 2023 | ||||||||||
| Current investments: | |||||||||||
| Marketable equity securities | $ | 21 | $ | 23 | |||||||
| Non-current investments: | |||||||||||
| Marketable and other equity securities (1) | $ | 309 | $ | 229 | |||||||
| Equity method investments (% ownership): | |||||||||||
| Pueblo Viejo Mine (40.0%) | 1,516 | 1,489 | |||||||||
| NuevaUnión Project (50.0%) | 961 | 959 | |||||||||
| Lundin Gold Inc. (32.0%) | 941 | 938 | |||||||||
| Norte Abierto Project (50.0%) | 532 | 528 | |||||||||
| Greatland (20.4%) (2) | 212 | — | |||||||||
| 4,162 | 3,914 | ||||||||||
| $ | 4,471 | $ | 4,143 | ||||||||
| Non-current restricted investments: (3) | |||||||||||
| Marketable debt securities | $ | 15 | $ | 21 | |||||||
____________________________
(1)Includes $25 accounted for under the measurement alternative.
(2)Acquired through the Telfer Sale in the fourth quarter of 2024 and accounted for under the fair value option, refer to Note 3 for further information.
(3)Non-current restricted investments are legally pledged for purposes of settling reclamation and remediation obligations and are included in Other non-current assets. For further information regarding these amounts, refer to Note 6.
Equity Method Investments
Income (loss) from the Company's equity method investments is recognized in Equity income (loss) of affiliates, which primarily consists of income from Pueblo Viejo and Lundin Gold. Income (loss) from Pueblo Viejo consisted of $91, $63, and $102 for the years ended December 31, 2024, 2023, and 2022.
NEWMONT CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(dollars in millions, except per share, per ounce and per pound amounts)
On November 6, 2023, as a part of the Newcrest transaction, the Company acquired 32.0% interest in Lundin Gold. The Company accounts for Lundin as an equity method investment on a quarter lag. Income (loss) from Lundin Gold consisted of $45 for the year ended December 31, 2024.
See below for further information on the Company's equity method investments.
Pueblo Viejo
The Pueblo Viejo mine is located in the Dominican Republic and commenced operations in September 2014. Barrick Gold Corporation ("Barrick") operates and holds the remaining interest in the mine. At acquisition, the fair value of Newmont’s equity investment in Pueblo Viejo was lower than the underlying net assets of its investment resulting in a basis difference, which is being amortized into Equity income (loss) of affiliates over the remaining estimated useful life of the mine. As of December 31, 2024 the net basis difference was $295.
In September 2019, the Company and Barrick entered into a $70 revolving loan facility (“Revolving Facility”) to provide short-term financing to Pueblo Viejo. The Company funded 40% of the borrowings based on its ownership interest in Pueblo Viejo. The Revolving Facility matured on December 31, 2024 and as such, there were no borrowings outstanding as of December 31, 2024. No borrowings were outstanding as of December 31, 2023.
In November 2020, the Company and Barrick entered into an agreement with Pueblo Viejo to provide funding of up to $1,300 ($520 attributable to Newmont's 40% ownership interest) through a loan facility for the expansion of Pueblo Viejo's operations (“Loan Facility”). Under the terms of the agreement, the Company and Barrick distributed funds based on their respective proportionate ownership interest in Pueblo Viejo. The Loan Facility bears interest at 95% of the 6-month SOFR plus 4.25% which is compounded semi-annually in arrears on February 28 and August 31 of each year. The Loan Facility was provided in two tranches of $800 and $500, respectively. Unused proceeds under the first tranche are available for use under the second tranche. The tranches mature February 28, 2032 and February 28, 2035, respectively.
In October 2024, the Company and Barrick entered into an agreement with Pueblo Viejo to provide additional funding of up to $800 ($320 attributable to Newmont's 40% ownership interest) through an additional loan facility to complete the expansion of Pueblo Viejo's operations (“Loan Facility II”). Under the terms of the agreement, the Company and Barrick will distribute funds based on their respective proportionate ownership interest in Pueblo Viejo. The Loan Facility II bears interest at the 6-month SOFR plus 3.81% which is compounded semi-annually in arrears on February 15 and August 15 of each year. The Loan Facility II matures February 15, 2039.
As of December 31, 2024 and December 31, 2023, the Company had outstanding stockholder loans to Pueblo Viejo of $486 and $429, which includes accrued interest of $19 and $14, respectively. All loans receivable and accrued interest are included in the Pueblo Viejo equity method investment balance.
The Company purchases its portion (40.0%) of gold and silver produced from Pueblo Viejo at market price and resells those ounces to third parties. Total payments made to Pueblo Viejo for gold and silver purchased were $580 and $448 for the years ended December 31, 2024 and December 31, 2023, respectively. These purchases, net of subsequent sales, were included in Other income (loss), net and the net amount is immaterial. There were no amounts due to or due from Pueblo Viejo for gold and silver purchases as of December 31, 2024 or December 31, 2023.
NuevaUnión
The NuevaUnión project is located in Chile and is currently in the Company’s development project pipeline. The project is jointly managed by Newmont and Teck Resources Limited, who holds the remaining 50% interest. At acquisition, the carrying value of Newmont’s equity investment in NuevaUnión was lower than the underlying net assets of its investment resulting in a basis difference. This basis difference will be amortized into Equity income (loss) of affiliates over the remaining estimated useful life of the mine beginning when commercial production is declared, which had not yet occurred as of December 31, 2024.
At December 31, 2024 the carrying value of Newmont’s equity investment in NuevaUnión was lower than the underlying net assets of its investment by $67. This basis difference will be amortized into Equity income (loss) of affiliates over the remaining estimated useful life of the mine beginning when commercial production is declared, which had not yet occurred as of December 31, 2024.
Lundin Gold Inc.
Lundin Gold is a Canadian based mine development and operating company which wholly owns and operates the Fruta del Norte gold mine in Ecuador. On November 6, 2023, as a part of the Newcrest transaction, the Company acquired 32.0% interest in Lundin Gold. The Company accounts for Lundin as an equity method investment on a quarter lag. At acquisition, the fair value of Newmont’s equity investment in Lundin Gold was higher than the underlying net assets of its investment resulting in a basis difference. This basis difference is being amortized into Equity income (loss) of affiliates over the remaining estimated useful life of the mine. As of December 31, 2024 the net basis difference was $588.
NEWMONT CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(dollars in millions, except per share, per ounce and per pound amounts)
The Company had the right to purchase 50% of gold produced from Lundin Gold at a price determined based on delivery dates and a defined quotational period and resold the ounces purchased to third parties under an offtake agreement acquired through the Newcrest transaction (the "Offtake agreement"). In the second quarter of 2024, the Company completed the sale of the SCFA and Offtake agreement in which Lundin Gold repurchased the SCFA and settled the rights under the Offtake agreement. Refer to Note 14 for further information.
Total payments made to Lundin Gold under the Offtake agreement for gold purchased were $189 and $30 for the years ended December 31, 2024 and December 31, 2023, respectively. These purchases, net of subsequent sales, were included in Other income (loss), net and the net amount is immaterial. There was $— and $13 payable due to Lundin Gold for gold purchases as of December 31, 2024 and December 31, 2023, respectively. At December 31, 2024, the calculated fair value, based on quoted closing prices of publicly traded shares, of the Company's investment in Lundin Gold was $1,638.
Norte Abierto
The Norte Abierto project is located in Chile and is currently in the Company’s development project pipeline. The project is jointly managed by Newmont and Barrick, who holds the remaining 50.0% interest. Prior to December 2023, Newmont owed deferred payments to Barrick to be satisfied through funding a portion of Barrick’s share of Norte Abierto project expenditures.
In December 2023, the Company entered into an agreement with Barrick and subsequently settled the deferred payments. Immediately prior to settlement, there were $23 and $73 related to these deferred payments included in Other current liabilities and Other non-current liabilities on the Consolidated Balance Sheet, respectively. Per the terms of the agreement, the settlement occurred through a cash payment of approximately $60 and funding of prefeasibility study costs for the Norte Abierto project. The Company has agreed to fund both its and Barrick's portions of prefeasibility study costs, up to a total of $60, to occur in the near future. If prefeasibility costs exceed the agreed upon $60, the costs will be paid proportionately by the Company and Barrick. The $30 related to the prefeasibility study costs associated with Barrick's portion will be satisfied as funding occurs. At December 31, 2024 and 2023, $20 and $20 is recognized within Other current liabilities, respectively, and $3 and $10 within Other non-current liabilities, respectively.
At December 31, 2024 the carrying value of Newmont’s equity investment in Norte Abierto was lower than the underlying net assets of its investment by $209. This basis difference will be amortized into Equity income (loss) of affiliates over the remaining estimated useful life of the mine beginning when commercial production is declared, which had not yet occurred as of December 31, 2024.
Greatland
Greatland Gold plc ("Greatland") is an Australian based mine development and exploration company which acquired the Company's assets held in the Telfer reportable segment in December 2024. Refer to Note 3 for further information on the Telfer Sale. Pursuant to the terms of the sale, the Company acquired a 20.4% interest in Greatland resulting in 2.7 billion shares. The Company accounts for its investment in Greatland as an equity method investment, included in Investments, for which the Company elected the fair value option as it believes it best reflects the economics of the underlying transaction.
The equity held in Greatland contains an option in which a third party has the ability to acquire 1.3 billion of the Company's Greatland shares at a set price exercisable for four years (the "Greatland Option"). The Greatland Option does not meet the definition of a derivative and is considered to be a financial liability, for which the Company has elected the fair value option. The Company believes the fair value option best reflects the economics of the underlying transaction. The Greatland Option is included in Other non-current liabilities at a fair value of $51 at December 31, 2024.
Under the fair value option, changes in the fair value of the instrument are recognized through earnings each reporting period in Other income (loss), net. For the year ended December 31, 2024, a loss of $29 and a gain of $16 were recognized in Other income (loss), net related to the Greatland equity method investment and Greatland Option, respectively.
NOTE 16 INVENTORIES
| At December 31, | |||||||||||
| 2024 | 2023 | ||||||||||
| Materials and supplies | $ | 1,081 | $ | 1,247 | |||||||
| In-process | 118 | 160 | |||||||||
| Concentrate | 148 | 134 | |||||||||
| Precious metals | 76 | 122 | |||||||||
| Inventories (1) | $ | 1,423 | $ | 1,663 |
____________________________
(1)During the first quarter of 2024, certain non-core assets were determined to meet the criteria for held for sale. As a result, at December 31, 2024 the related assets, including Inventories of $185, were reclassified to Assets held for sale. Refer to Note 3 for additional information.
NEWMONT CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(dollars in millions, except per share, per ounce and per pound amounts)
The Company recorded write-downs classified as components of Costs applicable to sales and Depreciation and amortization to reduce the carrying value of inventories to net realizable value as follows:
| Year Ended December 31, | |||||||||||||||||
| 2024 (1) | 2023 (2) | 2022 (3) | |||||||||||||||
| Costs applicable to sales | $ | 44 | $ | 37 | $ | 6 | |||||||||||
| Depreciation and amortization | 5 | 15 | 2 | ||||||||||||||
| $ | 49 | $ | 52 | $ | 8 |
____________________________
(1)For the year ended December 31, 2024, $34 was related to Telfer, $10 to Cerro Negro, $3 to Brucejack, $1 to Peñasquito, and $1 to NGM.
(2)For the year ended December 31, 2023, $35 was related to Peñasquito, $5 to Éléonore, $4 to Porcupine, $3 to Cerro Negro, $3 to Brucejack, and $2 to Telfer.
(3)For the year ended December 31, 2022, write-downs were immaterial at various sites.
NOTE 17 STOCKPILES AND ORE ON LEACH PADS
| At December 31, 2024 (1) | At December 31, 2023 | ||||||||||||||||||||||||||||||||||
| Stockpiles | Ore on Leach Pads | Total | Stockpiles | Ore on Leach Pads | Total | ||||||||||||||||||||||||||||||
| Current | $ | 624 | $ | 137 | $ | 761 | $ | 746 | $ | 233 | $ | 979 | |||||||||||||||||||||||
| Non-current | 2,072 | 194 | 2,266 | 1,532 | 403 | 1,935 | |||||||||||||||||||||||||||||
| Total | $ | 2,696 | $ | 331 | $ | 3,027 | $ | 2,278 | $ | 636 | $ | 2,914 |
____________________________
(1)During the first quarter of 2024, certain non-core assets were determined to meet the criteria for held for sale. As a result, at December 31, 2024 the related assets, including Stockpiles and ore on leach pads of $374, were reclassified to Assets held for sale. Refer to Note 3 for additional information.
The Company recorded write-downs classified as components of Costs applicable to sales and Depreciation and amortization to reduce the carrying value of stockpiles and ore on leach pads to net realizable value as follows:
| Year Ended December 31, | |||||||||||||||||
| 2024 (1) | 2023 (2) | 2022 (3) | |||||||||||||||
| Costs applicable to sales | $ | 48 | $ | 60 | $ | 156 | |||||||||||
| Depreciation and amortization | 16 | 15 | 53 | ||||||||||||||
| $ | 64 | $ | 75 | $ | 209 |
____________________________
(1)For the year ended December 31, 2024, $37 was related to Red Chris, $26 to NGM, and $1 to Cerro Negro.
(2)For the year ended December 31, 2023, $52 was related to NGM, $11 to Peñasquito, $6 to Yanacocha, $2 to Akyem, $2 to Éléonore, and $2 to Telfer.
(3)For the year ended December 31, 2022, $71 was related to NGM, $49 to Yanacocha, $45 to CC&V, $28 to Akyem, $12 to Ahafo, and $4 to Merian.
NOTE 18 PROPERTY, PLANT AND MINE DEVELOPMENT
| Depreciable Life (in years) | At December 31, 2024 | At December 31, 2023 | |||||||||||||||||||||||||||||||||||||||
| Cost | Accumulated Depreciation | Net Book Value (1) | Cost | Accumulated Depreciation | Net Book Value | ||||||||||||||||||||||||||||||||||||
| Land | $ | 253 | $ | — | $ | 253 | $ | 347 | $ | — | $ | 347 | |||||||||||||||||||||||||||||
| Facilities and equipment (2) | 1-26 | 23,362 | (11,761) | 11,601 | 25,804 | (12,925) | 12,879 | ||||||||||||||||||||||||||||||||||
| Mine development | 1-26 | 6,562 | (3,533) | 3,029 | 7,223 | (3,775) | 3,448 | ||||||||||||||||||||||||||||||||||
| Mineral interests | 1-26 | 17,050 | (3,569) | 13,481 | 19,450 | (3,360) | 16,090 | ||||||||||||||||||||||||||||||||||
| Construction-in-progress | 5,183 | — | 5,183 | 4,799 | — | 4,799 | |||||||||||||||||||||||||||||||||||
| $ | 52,410 | $ | (18,863) | $ | 33,547 | $ | 57,623 | $ | (20,060) | $ | 37,563 |
____________________________
(1)During the first quarter of 2024, certain non-core assets were determined to meet the criteria for held for sale. As a result, at December 31, 2024 the related assets, including Property, plant and mine development of $4,439, were reclassified to Assets held for sale. Refer to Note 3 for additional information.
(2)At December 31, 2024 and 2023, Facilities and equipment includes finance lease right of use assets of $482 and $531, respectively.
NEWMONT CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(dollars in millions, except per share, per ounce and per pound amounts)
| Depreciable Life (in years) | At December 31, 2024 | At December 31, 2023 | |||||||||||||||||||||||||||||||||||||||
| Mineral Interests | Cost | Accumulated Depreciation | Net Book Value (1) | Cost | Accumulated Depreciation | Net Book Value | |||||||||||||||||||||||||||||||||||
| Production stage | 1-26 | $ | 12,191 | $ | (3,569) | $ | 8,622 | $ | 13,155 | $ | (3,360) | $ | 9,795 | ||||||||||||||||||||||||||||
| Development stage | (2) | 1,386 | — | 1,386 | 1,277 | — | 1,277 | ||||||||||||||||||||||||||||||||||
| Exploration stage | (2) | 3,473 | — | 3,473 | 5,018 | — | 5,018 | ||||||||||||||||||||||||||||||||||
| $ | 17,050 | $ | (3,569) | $ | 13,481 | $ | 19,450 | $ | (3,360) | $ | 16,090 |
____________________________
(1)During the first quarter of 2024, certain non-core assets were determined to meet the criteria for held for sale. As a result, at December 31, 2024 the related assets, including $1,885 of mineral interests included in Property, plant and mine development, were reclassified to Assets held for sale. Refer to Note 3 for additional information.
(2)These amounts are currently non-depreciable as these mineral interests have not reached production stage.
NOTE 19 GOODWILL
Changes in the carrying amount of goodwill by reportable segment were as follows:
| Balance at December 31, 2022 | Impairment (1) | Acquisitions (2) | Balance at December 31, 2023 | Acquisitions (2) | Balance at December 31, 2024 | ||||||||||||||||||||||||||||||||||||
| Musselwhite | $ | 293 | $ | (293) | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||||||||||||
| Éléonore | 246 | (246) | — | — | — | — | |||||||||||||||||||||||||||||||||||
| Brucejack | — | — | 1,087 | 1,087 | (418) | 669 | |||||||||||||||||||||||||||||||||||
| Red Chris | — | — | 397 | 397 | 142 | 539 | |||||||||||||||||||||||||||||||||||
| Peñasquito (3) | 1,164 | (1,210) | — | — | — | — | |||||||||||||||||||||||||||||||||||
| Cadia | — | — | 565 | 565 | (316) | 249 | |||||||||||||||||||||||||||||||||||
| Lihir | — | — | 695 | 695 | 249 | 944 | |||||||||||||||||||||||||||||||||||
| NGM | 268 | (11) | — | 257 | — | 257 | |||||||||||||||||||||||||||||||||||
| $ | 1,971 | $ | (1,760) | $ | 2,744 | $ | 3,001 | $ | (343) | $ | 2,658 | ||||||||||||||||||||||||||||||
____________________________
(1)Accumulated impairment of $2,560 consists of impairment charges incurred in 2022 and 2023 of $800, and $1,760 respectively.
(2)Amounts relate to goodwill recognized through the Newcrest transaction on November 6, 2023. During 2024, goodwill was subject to measurement period adjustments to the purchase price allocation. Refer to Note 3 for further information.
(3)For the year ended December 31, 2023, the Company recognized a prior period adjustment of $46 to goodwill and deferred tax liability for Peñasquito relating to a prior acquisition. This adjustment resulted in an increase to goodwill, which was fully offset by the impairment charge incurred in 2023.
NOTE 20 DEBT
| At December 31, 2024 | At December 31, 2023 | ||||||||||||||||||||||||||||||||||
| Current | Non-Current | Fair Value (1) | Current | Non-Current | Fair Value (1) | ||||||||||||||||||||||||||||||
| $2,000 Bilateral Bank Facilities due 2024 and 2026 (2) | $ | — | $ | — | $ | — | $ | 1,923 | $ | — | $ | 1,927 | |||||||||||||||||||||||
| $1,000 5.30% Senior Notes due March 2026 (3) | 924 | — | 948 | — | — | — | |||||||||||||||||||||||||||||
| $700 2.80% Senior Notes due October 2029 | — | 633 | 587 | — | 693 | 645 | |||||||||||||||||||||||||||||
| $650 3.25% Senior Notes due May 2030 | — | 554 | 583 | — | 557 | 597 | |||||||||||||||||||||||||||||
| $1,000 2.25% Senior Notes due October 2030 | — | 872 | 765 | — | 989 | 872 | |||||||||||||||||||||||||||||
| $1,000 2.60% Senior Notes due July 2032 | — | 821 | 713 | — | 992 | 868 | |||||||||||||||||||||||||||||
| $1,000 5.35% Senior Notes due March 2034 | — | 987 | 1,012 | — | — | — | |||||||||||||||||||||||||||||
| $600 5.875% Senior Notes due April 2035 | — | 581 | 625 | — | 580 | 654 | |||||||||||||||||||||||||||||
| $1,100 5.875% Senior Notes due October 2039 | — | 861 | 934 | — | 861 | 986 | |||||||||||||||||||||||||||||
| $500 5.75% Senior Notes due November 2041 | — | 457 | 500 | — | 456 | 535 | |||||||||||||||||||||||||||||
| $1,000 4.875% Senior Notes due March 2042 | — | 949 | 891 | — | 986 | 991 | |||||||||||||||||||||||||||||
| $450 5.45% Senior Notes due June 2044 | — | 479 | 435 | — | 480 | 462 | |||||||||||||||||||||||||||||
| $500 4.20% Senior Notes due May 2050 | — | 363 | 407 | — | 361 | 438 | |||||||||||||||||||||||||||||
| Debt issuance costs on Corporate Revolving Credit Facilities | — | (5) | — | — | (4) | — | |||||||||||||||||||||||||||||
| $ | 924 | $ | 7,552 | $ | 8,400 | $ | 1,923 | $ | 6,951 | $ | 8,975 |
____________________________
(1)The estimated fair value of the Senior Notes was determined by an independent third-party pricing source and may or may not reflect the actual trading value of this debt. Carrying value of the bilateral bank facilities approximates fair value.
NEWMONT CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(dollars in millions, except per share, per ounce and per pound amounts)
(2)Interest rates on the bilateral bank facilities are variable. Refer to "Corporate Revolving Credit Facilities and Letters of Credit Facilities" below for further information.
(3)The Company fully redeemed all of the outstanding 2026 Senior Notes in February 2025. Refer below for further information.
All outstanding Senior Notes are unsecured and rank equally with one another.
Maturities for the next five years, and thereafter, are as follows:
| Year Ending December 31, | |||||
| 2025 (1) | $ | 928 | |||
| 2026 | — | ||||
| 2027 | — | ||||
| 2028 | — | ||||
| 2029 | 638 | ||||
| Thereafter | 7,225 | ||||
| Total face value of debt | 8,791 | ||||
| Unamortized premiums, discounts, and issuance costs | (315) | ||||
| Debt | $ | 8,476 |
____________________________
(1)The Company fully redeemed all of the outstanding 2026 Senior Notes in February 2025. Refer below for further information.
Corporate Revolving Credit Facilities and Letters of Credit Facilities
In connection with the Newcrest transaction on November 6, 2023, the Company acquired bilateral bank debt facilities held with 13 banks. The bilateral bank debt facilities had a total borrowing capacity of $2,000, of which $1,923 was outstanding at December 31, 2023, and $462 due February 7, 2024, $769 due March 1, 2024, and $692 due March 1, 2026. On February 7, 2024, the Company repaid $462 of the amount outstanding.
On February 15, 2024, the Company completed an amendment and restatement of its existing $3,000 revolving credit agreement dated as of April 4, 2019 (the “Existing Credit Agreement”). The Existing Credit Agreement was entered into with a syndicate of financial institutions and provided for borrowings in U.S. dollars and contained a letter of credit sub-facility. Per the amendment, the expiration date of the credit facility was extended from March 30, 2026 to February 15, 2029 and the borrowing capacity was increased to $4,000. Interest is based on Term SOFR plus a credit spread adjustment and margin. Facility fees vary based on the credit ratings of the Company’s senior, uncollateralized, non-current debt. Debt covenants under the amendment are substantially the same as the Existing Credit Agreement.
On February 20, 2024, the Company completed a drawdown on the $4,000 revolving credit agreement and used the proceeds to repay the remaining $1,461 owed on the remaining bilateral bank debt facilities.
At December 31, 2024, the Company had no borrowings outstanding under the facility. There were no amounts outstanding on the letters of credit sub-facility at December 31, 2024 and 2023, respectively.
At December 31, 2024 and 2023 the Company had letters of credit outstanding in the amounts of $1,034 and $1,158, respectively, of which $900 and $1,015 represented guarantees for reclamation obligations, respectively. None of these letters of credit have been drawn on for reclamation obligations as of December 31, 2024 and 2023.
NEWMONT CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(dollars in millions, except per share, per ounce and per pound amounts)
Debt Extinguishment
In 2024, the Company partially redeemed certain Senior Notes resulting in a gain on extinguishment of $38 recognized in Other income (loss), net for the year ended December 31, 2024. The gain includes the write-off of unamortized premiums, discounts, and issuance costs of $8 related to the partially redeemed Senior Notes. The following table summarizes the partial redemptions:
| Settled Notional Amount | Total Repurchase Amount (1) | ||||||||||
| $1,000 5.30% Senior Notes due March 2026 | $ | 72 | $ | 74 | |||||||
| $700 2.80% Senior Notes due October 2029 | 62 | 58 | |||||||||
| $650 3.25% Senior Notes due May 2030 | 17 | 16 | |||||||||
| $1,000 2.25% Senior Notes due October 2030 | 120 | 107 | |||||||||
| $1,000 2.60% Senior Notes due July 2032 | 174 | 150 | |||||||||
| $1,000 4.875% Senior Notes due March 2042 (2) | 38 | 36 | |||||||||
| $ | 483 | $ | 441 |
____________________________
(1)Includes $4 of accrued interest.
(2)As a result of the partial redemption, the Company accelerated a loss of $6 from Accumulated other comprehensive income (loss) to Other income (loss), net for the year ended December 31, 2024 related to previously terminated interest rate swaps.
2026 and 2034 Senior Notes
On March 7, 2024, the Company issued $2,000 unsecured Senior Notes comprised of $1,000 due March 15, 2026 (“2026 Senior Notes”) and $1,000 due March 15, 2034 ("2034 Senior Notes"). Net proceeds from the 2026 and 2034 Senior Notes were $1,980. Interest will be paid semi-annually at a rate of 5.30% and 5.35% per annum for the 2026 and the 2034 Senior Notes, respectively. The proceeds from this issuance were used to repay the drawdown on the revolving credit facility resulting in no amounts outstanding on the revolving credit facility as of December 31, 2024.
In February 2025, the Company fully redeemed all of the outstanding 2026 Senior Notes for a redemption price of $957. The redemption price equaled the principal amount of the outstanding 2026 Senior Notes of $928 plus accrued and unpaid interest of $19 in accordance with the terms of the 2026 Notes, and a make-whole provision of $10.
May 2030 Senior Notes, November 2041 Senior Notes, and May 2050 Senior Notes
Subsequent to implementation of the Newcrest transaction, the Company completed a like-for-like exchange for any and all of the outstanding notes issued by Newcrest Finance Pty Ltd, a wholly owned subsidiary of Newmont ("Newcrest Finance"), with an aggregate principal amount of $1,650, for new notes issued by Newmont and Newcrest Finance and nominal cash consideration. The new notes, issued December 26, 2023, and the existing Newcrest notes that were not tendered for exchange, consist of $625 and $25 of 3.25% notes due May 13, 2030 (the "May 2030 Senior Notes" and the "2030 Newcrest Senior Notes", respectively), $460 and $40 of 5.75% notes due November 15, 2041 (the "November 2041 Senior Notes" and the "2041 Newcrest Senior Notes", respectively), and $486 and $14 of 4.20% notes due May 13, 2050, respectively (the "May 2050 Senior Notes" and the "2050 Newcrest Senior Notes", respectively).
Debt Covenants
The Company’s 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, the Company’s senior notes and corporate revolving credit facility contain covenants that include, limiting the sale of all or substantially all of the Company’s assets, certain change of control provisions and a negative pledge on certain assets.
The corporate revolving credit facility contains a financial ratio covenant requiring the Company 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, 2024, the Company was in compliance with all existing debt covenants and provisions related to potential defaults, other than the bilateral facilities which have been repaid as of the date of this report.
NOTE 21 LEASE AND OTHER FINANCING OBLIGATIONS
The Company primarily has operating and finance leases for corporate and regional offices, mining equipment, power generation, and transportation. These leases have a remaining lease term of less than 1 year to 33 years, some of which may include options to extend the lease for up to 15 years, and some of which may include options to terminate the lease within 1 year. Some of the Company's leases include payments that vary based on the Company’s level of usage and operations. These variable payments are
NEWMONT CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(dollars in millions, except per share, per ounce and per pound amounts)
not included within right-of-use ("ROU") assets and lease liabilities in the Consolidated Balance Sheets. Additionally, short-term leases, which have an initial term of 12 months or less, are not recorded in the Consolidated Balance Sheets.
Total lease cost includes the following components:
| Year Ended December 31, | |||||||||||
| 2024 | 2023 | ||||||||||
| Operating lease cost | $ | 27 | $ | 23 | |||||||
| Finance lease cost: | |||||||||||
| Amortization of ROU assets | 91 | 78 | |||||||||
| Interest on lease liabilities | 35 | 32 | |||||||||
| 126 | 110 | ||||||||||
| Variable lease cost | 509 | 298 | |||||||||
| Short-term lease cost | 76 | 24 | |||||||||
| $ | 738 | $ | 455 |
Supplemental cash flow information related to leases includes the following:
| Year Ended December 31, | |||||||||||
| 2024 | 2023 | ||||||||||
| Cash paid for amounts included in the measurement of lease liabilities: | |||||||||||
| Operating cash flows relating to operating leases | $ | 20 | $ | 23 | |||||||
| Operating cash flows relating to finance leases | $ | 34 | $ | 33 | |||||||
| Financing cash flows relating to finance leases | $ | 87 | $ | 67 | |||||||
| Non-cash lease obligations arising from obtaining ROU assets:(1) | |||||||||||
| Operating leases | $ | 10 | $ | 23 | |||||||
| Finance leases | $ | 59 | $ | 53 |
____________________________
(1)For the year ended December 31, 2023, operating and finance lease obligations assumed in relation to the Newcrest transaction were $13 and $51, respectively.
Information related to lease terms and discount rates is as follows:
| Operating Leases | Finance Leases | ||||||||||
| Weighted average remaining lease term (years) | 8 | 8 | |||||||||
| Weighted average discount rate | 4.35 | % | 6.36 | % |
Future minimum lease payments under non-cancellable leases as of December 31, 2024, were as follows:
| Operating Leases (1) | Finance Leases | ||||||||||
| 2025 | $ | 20 | $ | 116 | |||||||
| 2026 | 14 | 96 | |||||||||
| 2027 | 13 | 77 | |||||||||
| 2028 | 11 | 71 | |||||||||
| 2029 | 10 | 46 | |||||||||
| Thereafter | 31 | 252 | |||||||||
| Total future minimum lease payments | 99 | 658 | |||||||||
| Less: Imputed interest | (12) | (162) | |||||||||
| Total | $ | 87 | $ | 496 |
____________________________
(1)The current and non-current portion of operating lease liabilities are included in Other current liabilities and Other non-current liabilities, respectively, on the Consolidated Balance Sheets.
As of December 31, 2024, the Company has additional leases that have not yet commenced. At commencement, the Company anticipates that these leases will result in additional ROU assets and lease liabilities of $3. The leases are anticipated to commence in 2025 with a lease term of approximately 2 years.
NEWMONT CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(dollars in millions, except per share, per ounce and per pound amounts)
NOTE 22 OTHER LIABILITIES
| At December 31, | |||||||||||
| 2024 | 2023 | ||||||||||
| Other current liabilities: | |||||||||||
| Reclamation and remediation liabilities | $ | 991 | $ | 619 | |||||||
| Accrued operating costs (1) | 468 | 473 | |||||||||
| Accrued capital expenditures | 208 | 320 | |||||||||
| Accrued royalties | 165 | 137 | |||||||||
| Hedging instruments (2) | 136 | — | |||||||||
| Payables to NGM (3) | 115 | 91 | |||||||||
| Silver streaming agreement | 76 | 87 | |||||||||
| Stamp duty on Newcrest transaction (4) | 29 | 316 | |||||||||
| Other (5) | 293 | 319 | |||||||||
| $ | 2,481 | $ | 2,362 | ||||||||
| Other non-current liabilities: | |||||||||||
| Income and mining taxes (6) | $ | 125 | $ | 177 | |||||||
| Greatland Option (7) | 51 | — | |||||||||
| Other (8) | 112 | 139 | |||||||||
| $ | 288 | $ | 316 |
____________________________
(1)Includes an estimated compensation payment to the Worsley JV related to the waiver of certain rights within the cross-operation agreement that confers priority to the bauxite operations at the Boddington mine.
(2)Refer to Note 14 for additional information.
(3)Payables to NGM at December 31, 2024 and December 31, 2023 consist of amounts due to (from) NGM representing Barrick's 61.5% proportionate share of the amount owed to NGM for gold and silver purchased by Newmont. Newmont’s 38.5% share of such amounts is eliminated upon proportionate consolidation of its interest in NGM. Receivables for Newmont's 38.5% proportionate share related to NGM's activities with Barrick are presented within Other current assets.
(4)Incurred as a result of the Newcrest transaction. Refer to Note 8 for further information. Payment of $291 occurred in the first quarter of 2024.
(5)Primarily consists of accrued interest on debt and taxes other than income and mining taxes.
(6)Primarily consists of unrecognized tax benefits, including penalties and interest.
(7)Acquired through the Telfer Sale in the fourth quarter of 2024 and accounted for under the fair value option. Refer to Notes 3 and 15 for further information.
(8)Primarily consists of the non-current portion of operating lease liabilities.
NOTE 23 ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)
| Unrealized Gain (Loss) on Hedge Instruments | Pension and Other Post-retirement Benefit Adjustments | Other Adjustments | Total | ||||||||||||||||||||||||||||||||||||||
| Balance at December 31, 2022 | $ | (69) | $ | (27) | $ | 125 | $ | 29 | |||||||||||||||||||||||||||||||||
| Net current-period other comprehensive income (loss): | |||||||||||||||||||||||||||||||||||||||||
| Gain (loss) in other comprehensive income (loss) before reclassifications | (19) | (9) | (5) | (33) | |||||||||||||||||||||||||||||||||||||
| (Gain) loss reclassified from accumulated other comprehensive income (loss) | 18 | — | — | 18 | |||||||||||||||||||||||||||||||||||||
| Other comprehensive income (loss) | (1) | (9) | (5) | (15) | |||||||||||||||||||||||||||||||||||||
| Balance at December 31, 2023 | (70) | (36) | 120 | 14 | |||||||||||||||||||||||||||||||||||||
| Net current-period other comprehensive income (loss): | |||||||||||||||||||||||||||||||||||||||||
| Gain (loss) in other comprehensive income (loss) before reclassifications | (140) | 8 | 5 | (127) | |||||||||||||||||||||||||||||||||||||
| (Gain) loss reclassified from accumulated other comprehensive income (loss) | 17 | — | 1 | 18 | |||||||||||||||||||||||||||||||||||||
| Other comprehensive income (loss) | (123) | 8 | 6 | (109) | |||||||||||||||||||||||||||||||||||||
| Balance at December 31, 2024 | $ | (193) | $ | (28) | $ | 126 | $ | (95) |
NEWMONT CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(dollars in millions, except per share, per ounce and per pound amounts)
| Details about Accumulated Other Comprehensive Income (Loss) Components | Amount Reclassified from Accumulated Other Comprehensive Income (Loss) | Affected Line Item in the Consolidated Statements of Operations | ||||||||||||||||||||||||
| Year Ended December 31, | ||||||||||||||||||||||||||
| 2024 | 2023 | 2022 | ||||||||||||||||||||||||
| Hedge instruments adjustments: | ||||||||||||||||||||||||||
| Interest rate contracts | $ | 10 | $ | 5 | $ | 6 | Interest expense, net of capitalized interest | |||||||||||||||||||
| Foreign currency cash flow hedges | 7 | 19 | — | Costs applicable to sales | ||||||||||||||||||||||
| Amortization | 5 | — | — | Costs applicable to sales | ||||||||||||||||||||||
| Total before tax | 22 | 24 | 6 | |||||||||||||||||||||||
| Tax | (5) | (6) | (1) | |||||||||||||||||||||||
| Net of tax | $ | 17 | $ | 18 | $ | 5 | ||||||||||||||||||||
| Pension and other post-retirement benefit adjustments: | ||||||||||||||||||||||||||
| Settlement | $ | 1 | $ | 9 | $ | 137 | Other income (loss), net | |||||||||||||||||||
| Amortization | (1) | (9) | (1) | Other income (loss), net | ||||||||||||||||||||||
| Total before tax | — | — | 136 | |||||||||||||||||||||||
| Tax | — | — | (29) | |||||||||||||||||||||||
| Net of tax | $ | — | $ | — | $ | 107 | ||||||||||||||||||||
| Other adjustments: | ||||||||||||||||||||||||||
| Sale of marketable securities | $ | 1 | $ | — | $ | — | Other income (loss), net | |||||||||||||||||||
| Total before tax | 1 | — | — | |||||||||||||||||||||||
| Tax | — | — | — | |||||||||||||||||||||||
| Net of tax | $ | 1 | $ | — | $ | — | ||||||||||||||||||||
| Total reclassifications for the period, net of tax | $ | 18 | $ | 18 | $ | 112 |
NOTE 24 NET CHANGE IN OPERATING ASSETS AND LIABILITIES
Net cash provided by (used in) operating activities of continuing operations attributable to the net change in operating assets and liabilities is composed of the following:
| Year Ended December 31, | |||||||||||||||||
| 2024 (1) | 2023 | 2022 | |||||||||||||||
| Decrease (increase) in operating assets: | |||||||||||||||||
| Trade and other receivables | $ | (441) | $ | (240) | $ | 5 | |||||||||||
| Inventories, stockpiles and ore on leach pads | (534) | (187) | (161) | ||||||||||||||
| Other assets | 64 | 50 | (84) | ||||||||||||||
| Increase (decrease) in operating liabilities: | |||||||||||||||||
| Accounts payable | (2) | (42) | 102 | ||||||||||||||
| Reclamation and remediation liabilities | (433) | (275) | (247) | ||||||||||||||
| Accrued tax liabilities | 235 | (197) | (343) | ||||||||||||||
| Other accrued liabilities (2) | 86 | 378 | (113) | ||||||||||||||
| $ | (1,025) | $ | (513) | $ | (841) |
____________________________
(1)During the first quarter of 2024, certain non-core assets were determined to meet the criteria for assets held for sale. As a result, the related assets and liabilities were reclassified to Assets held for sale and Liabilities held for sale, respectively. Amounts herein reflect the net change in the related operating assets and liabilities prior to being reclassified as held for sale. Refer to Note 3 for additional information.
(2)Primarily consists of payment of $291 made in the first quarter of 2024 for stamp duty tax largely accrued in the fourth quarter of 2023 in connection with the Newcrest transaction.
NOTE 25 COMMITMENTS AND CONTINGENCIES
General
Estimated losses from contingencies are accrued by a charge to income when information available prior to issuance of the financial statements indicates that it is probable that a liability could be incurred and the amount of the loss can be reasonably estimated. Legal expenses associated with the contingency are expensed as incurred. If a loss contingency is not probable or
NEWMONT CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(dollars in millions, except per share, per ounce and per pound amounts)
reasonably estimable, disclosure of the contingency and estimated range of loss, if determinable, is made in the financial statements when it is at least reasonably possible that a material loss could be incurred.
Operating Segments
The Company’s operating and reportable segments are identified in Note 4. Except as noted in this paragraph, all of the Company’s commitments and contingencies specifically described herein are included in the non-operating segment Corporate and Other. The Yanacocha matters relate to the Yanacocha reportable segment. The CC&V matter relates to the CC&V reportable segment. The Goldcorp Canada matters relates to the Porcupine reportable segment. The Cadia matter relates to the Cadia reportable segment. The Newmont Ghana Gold and Newmont Golden Ridge matters relate to the Ahafo and Akyem reportable segments, respectively.
Environmental Matters
Refer to Note 6 for further information regarding reclamation and remediation. Details about certain significant matters are discussed below.
Minera Yanacocha S.R.L. - 100% Newmont Owned
In early 2015 and again in June 2017, the Peruvian government agency responsible for certain environmental regulations, MINAM, issued proposed modifications to water quality criteria for designated beneficial uses which apply to mining companies, including Yanacocha. These criteria modified the in-stream water quality criteria pursuant to which Yanacocha has been designing water treatment processes and infrastructure. In December 2015, MINAM issued the final regulation that modified the water quality standards. These Peruvian regulations allow time to formulate a compliance plan and make any necessary changes to achieve compliance.
In February 2017, Yanacocha submitted a modification to its previously approved compliance achievement plan to the MINEM. In May 2022, Yanacocha submitted a proposed modification to this plan requesting an extension of time for coming into full compliance with the new regulations to 2027. In June 2023, Yanacocha received approval of its updated compliance plan from MINEM and was granted an extension to June 2026 to achieve compliance. The Company appealed this approval to the Mining Council requesting the regulatory extension until 2027, and in April 2024, MINEM approved the compliance schedule.
The Company currently operates five water treatment plants at Yanacocha that have been and currently meet all currently applicable water discharge requirements. The Company is conducting detailed studies to better estimate water management and other closure activities that will ensure water quality and quantity discharge requirements, including the modifications promulgated by MINAM, as referenced above, will be met. This also includes performing a comprehensive update to the Yanacocha reclamation plan to address changes in closure activities and estimated closure costs while preserving optionality for potential future projects at Yanacocha. These ongoing studies, which will extend beyond the current year, continue to evaluate and revise assumptions and estimated costs of changes to the reclamation plan. While certain estimated costs remain subject to revision, the Company’s current asset retirement obligation includes plans for the construction and post-closure management of two new water treatment plants and initial consideration of known risks (including the associated risk that these water treatment estimates could change in the future as more work is completed). The ultimate construction costs of the two water treatment plants remain uncertain as ongoing study work and assessment of opportunities that incorporates the latest design considerations remain in progress. These and other additional risks and contingencies that are the subject of ongoing studies, including, but not limited to, a comprehensive review of the Company's tailings storage facility management, review of Yanacocha’s water balance and storm water management system, and review of post-closure management costs, could result in future material increases to the reclamation obligation at Yanacocha.
Cripple Creek & Victor Gold Mining Company LLC - 100% Newmont Owned
In December 2021, Cripple Creek & Victor Gold Mining Company LLC (“CC&V”, a wholly-owned subsidiary of the Company) entered into a Settlement Agreement (“Settlement Agreement”) with the Water Quality Control Division of the Colorado Department of Public Health and Environment (the “Division”) with a mutual objective of resolving issues associated with the new discharge permits issued by the Division in January 2021 for the Carlton Tunnel. The Carlton Tunnel was a historic tunnel completed in 1941 with the purpose of draining the southern portion of the mining district, subsequently consolidated by CC&V. CC&V has held discharge permits for the Carlton Tunnel since 1983, primarily to focus on monitoring, with the monitoring data accumulated since the mid-1970s indicating consistency in the water quality discharged from the Carlton Tunnel over time. In 2006, legal proceedings and work with the regulator confirmed that the water flowing out of the Carlton Tunnel portal is akin to natural spring water and did not constitute mine drainage. However, this changed with the January 2021 permit updates, when the regulator imposed new water quality limits. The Settlement Agreement involves the evaluation of a reasonable and achievable timeline for treatment and permit compliance, acknowledging the lack of readily available technology, and the need to spend three years to study and select the technological solution, with three additional years to construct, bringing full permit compliance to the November 2027 timeframe. In 2022, the Company studied various interim passive water treatment options, reported the study results to the Division, and based on an evaluation of additional semi-passive options that involve the usage of power at the portal, updated the remediation liability to $20 in 2022. CC&V continues to study alternative long-term remediation plans for water discharged from the Carlton Tunnel, and is also working with regulators on the Discharger Specific Variance ("DSV") to identify highest feasible alternative treatment in the context, based on limits such as area topography. CC&V formally submitted its proposal for the DSV and the matter will be presented to the
NEWMONT CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(dollars in millions, except per share, per ounce and per pound amounts)
Water Quality Control Commission for June 2025 rulemaking hearing. Depending on the outcome of the hearing and the plans that may ultimately be agreed with the Division, a material adjustment to the remediation liability may be required.
In July 2024, CC&V received a notice from the Colorado Division of Reclamation Mining and Safety ("DRMS") citing it has reason to believe a violation existed with respect to reporting of monitoring data for mine impacted water at the mine’s East Cresson Overburden Storage Area ("ECOSA"). The Company and the DRMS reached a favorable Stipulated Agreement, which was submitted to the Mined Land Reclamation Board during the fourth quarter of 2024 and incorporated into an order of the Board.
Dawn Mining Company LLC (“Dawn”) - 58.19% Newmont Owned
Midnite mine site and Dawn mill site. Dawn previously leased an open pit uranium mine, currently inactive, on the Spokane Indian Reservation in the State of Washington. The mine site is subject to regulation by agencies of the U.S. Department of Interior (the Bureau of Indian Affairs and the Bureau of Land Management), as well as the EPA.
As per the Consent Decree approved by the U.S. District Court for the Eastern District of Washington on January 17, 2012, the following actions were required of Newmont, Dawn, the Department of the Interior and the EPA: (i) Newmont and Dawn would design, construct and implement the cleanup plan selected by the EPA in 2006 for the Midnite mine site; (ii) Newmont and Dawn would reimburse the EPA for its past costs associated with overseeing the work; (iii) the Department of the Interior would contribute a lump sum amount toward past EPA costs and future costs related to the cleanup of the Midnite mine site; (iv) Newmont and Dawn would be responsible for all future EPA oversight costs and Midnite mine site cleanup costs; and (v) Newmont would post a surety bond for work at the site.
During 2012, the Department of Interior contributed its share of past EPA costs and future costs related to the cleanup of the Midnite mine site. In 2016, Newmont completed the remedial design process, with the exception of the new WTP design which was awaiting the approval of the new NPDES permit. Subsequently, the new NPDES permit was received in 2017 and the WTP design commenced in 2018. The EPA approved the WTP design in 2021. Construction of the effluent pipeline began in 2021, and construction of the new WTP began in 2022. The WTP is projected to be completed in the first quarter of 2025. Forest fires and droughts in the Pacific Northwest delayed the completion of the effluent pipeline until early 2025.
The Dawn mill site is regulated by the Washington Department of Health (the "WDOH") and is in the process of being closed in accordance with the federal Uranium Mill Tailings Radiation Control Act, and associated Washington state regulations. Remediation at the Dawn mill site began in 2013. The Tailing Disposal Area 1-4 reclamation earthworks component was completed during 2017 with the embankment erosion protection completed in the second quarter of 2018. The remaining closure activities consist primarily of finalizing an Alternative Concentration Limit application (the "ACL application") submitted in 2020 to the WDOH to address groundwater issues, and also evaporating the remaining balance of process water at the site. In the fourth quarter of 2022, the WDOH provided comments on the ACL application, which Newmont is evaluating and conducting studies to better understand and respond to the comments provided by the WDOH. These studies and the related comment process will extend beyond the current year and could result in future material increases to the remediation obligation.
The remediation liability for the Midnite mine site and Dawn mill site is approximately $168, assumed 100% by Newmont, at December 31, 2024.
Goldcorp Canada Ltd. - 100% Newmont Owned
Porcupine mine site. The Porcupine complex is comprised of active open pit and underground mining operations as well as inactive, legacy sites from its extensive history of mining gold in and around the city of Timmins, Ontario since the early 1900s. As a result of these primarily historic mining activities, there are mine hazards in the area that could require some form of reclamation. The Company is conducting studies to better catalog, prioritize, and update its existing information of these historical mine hazards, to inform its closure plans and estimated closure costs. Based on work performed during 2023, a $46 reclamation adjustment was recorded at December 31, 2023, however, on-going studies will extend beyond the current year and could result in future material increases to the reclamation obligation at Porcupine.
Cadia Holdings Pty Ltd. - 100% Newmont Owned
Cadia mine site. Cadia Holdings Pty Ltd. (“Cadia Holdings”) is a wholly owned subsidiary of Newcrest, which was acquired by Newmont in November 2023. The mine site is subject to regulations by the New South Wales Environment Protection Authority (the “NSW EPA”). During the quarter ended June 2023, the NSW EPA issued variations to its Environment Protection License (“EPL”), a Prevention Notice and Notices to Provide Information regarding the management of, and investigation into potential breaches relating to, dust emissions and other air pollutants from Cadia Holdings’ tailings storage facilities and ventilation rises. The license variations largely formalized the actions Cadia Holdings had developed in consultation with the NSW EPA and was already undertaking across a range of measures. Cadia Holdings received a letter from the NSW EPA in June 2023 requiring it to immediately comply with specific statutory requirements and EPL conditions. Adjustments were implemented underground, including a reduction in mining rates, modifications to the ventilation circuit and the installation of additional dust sprays and spray curtains. Additional dust collection units were subsequently installed, enabling normal mining rates to be restored.
NEWMONT CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(dollars in millions, except per share, per ounce and per pound amounts)
In August 2023, the NSW EPA commenced proceedings in the Land and Environment Court of NSW (the “NSW Land and Environment Court”) against Cadia Holdings, alleging that air emissions from Cadia on or about March 1, 2022 exceeded the standard of concentration for total solid particles permitted under applicable laws due to the use of surface exhaust fans at the mine. On September 29, 2023, Cadia Holdings entered a plea of guilty and the NSW Land and Environment Court listed the case for a sentencing hearing on June 21, 2024. On October 13, 2023, the NSW EPA commenced additional proceedings in the NSW Land and Environment Court against Cadia Holdings, alleging two additional contraventions of applicable air emissions requirements between November 3 and 5, 2021 and May 24 and 25, 2023 and two contraventions related to alleged air pollution from tailings storage facilities on October 13 and 31, 2022. On November 24, 2023, Cadia Holdings entered a plea of guilty to the two additional charges relating to applicable air emissions requirements and the sentencing hearing took place before the NSW Land and Environment Court on June 21, 2024. The matter has been adjourned pending the delivery of the judgment. On October 18, 2024, Cadia Holdings entered a plea of not guilty to the proceedings related to alleged air pollution from Cadia Holdings’ tailings storage facilities. The proceedings have been adjourned for further directions on February 21, 2025. The NSW EPA’s investigation regarding the management of air emissions from the mine is ongoing.
While no specific relief has been sought by the NSW EPA in its proceedings against Cadia Holdings before the NSW Land and Environment Court, the court can impose penalties.
Other Legal Matters
Newmont Corporation, as well as Newmont Canada Corporation, and Newmont Canada FN Holdings ULC – 100% Newmont Owned
Kirkland Lake Gold Inc., which was acquired by Agnico Eagle Mines Limited in 2022 (still referred to herein as “Kirkland” for ease of reference), owns certain mining and mineral rights in northeastern Ontario, Canada, referred to here as the Holt-McDermott property, on which it suspended operations in April 2020. A subsidiary of the Company has a retained royalty obligation (“Holt royalty obligation”) to Royal Gold, Inc. (“Royal Gold”) for production on the Holt-McDermott property. In August 2020, the Company and Kirkland signed a Strategic Alliance Agreement (the “Kirkland Agreement”). As part of the Kirkland Agreement, the Company purchased an option (the “Holt option”) for $75 from Kirkland for the mining and mineral rights subject to the Holt royalty obligation. The Company has the right to exercise the Holt option and acquire ownership to the mineral interests subject to the Holt royalty obligation in the event Kirkland intends to resume operations and process material subject to the obligation. Kirkland has the right to assume the Company’s Holt royalty obligation at any time, in which case the Holt option would terminate.
On August 16, 2021, International Royalty Corporation (“IRC”), a wholly-owned subsidiary of Royal Gold, filed an action in the Supreme Court of Nova Scotia against Newmont Corporation, Newmont Canada Corporation, Newmont Canada FN Holdings ULC (collectively "Newmont"), and certain Kirkland defendants (collectively "Kirkland"). IRC alleges the Kirkland Agreement is oppressive to the interests of Royal Gold under the Nova Scotia Companies Act and the Canada Business Corporations Act, and that, by entering into the Kirkland Agreement, Newmont breached its contractual obligations to Royal Gold. IRC seeks declaratory relief, and $350 in alleged royalty payments that it claims Newmont expected to pay under the Holt royalty obligation, but for the Kirkland Agreement. Kirkland filed a motion seeking dismissal of the case against it, which the court granted in October 2022. Newmont submitted its statement of defense on February 27, 2023, and a motion for summary judgment on January 12, 2024. The motion for summary judgment was denied on May 27, 2024. Newmont intends to vigorously defend this matter but cannot reasonably predict the outcome.
Newmont Ghana Gold Limited and Newmont Golden Ridge Limited - 100% Newmont Owned
On December 24, 2018, two individual plaintiffs, who are members of the Ghana Parliament (“Plaintiffs”), filed a writ to invoke the original jurisdiction of the Supreme Court of Ghana. On January 16, 2019, Plaintiffs filed the Statement of Plaintiff’s Case outlining the details of the Plaintiff’s case and subsequently served Newmont Ghana Gold Limited (“NGGL”) and Newmont Golden Ridge Limited (“NGRL”) along with the other named defendants, the Attorney General of Ghana, the Minerals Commission of Ghana and 33 other mining companies with interests in Ghana. The Plaintiffs allege that under article 268 of the 1992 Constitution of Ghana, the mining company defendants are not entitled to carry out any exploitation of minerals or other natural resources in Ghana, unless their respective transactions, contracts or concessions are ratified or exempted from ratification by the Parliament of Ghana. Newmont’s current mining leases are both ratified by Parliament; NGGL June 13, 2001 mining lease, ratified by Parliament on October 21, 2008, and NGRL January 19, 2010 mining lease; ratified by Parliament on December 3, 2015. The writ alleges that any mineral exploitation prior to Parliamentary ratification is unconstitutional. The Plaintiffs seek several remedies including: (i) a declaration as to the meaning of constitutional language at issue; (ii) an injunction precluding exploitation of minerals for any mining company without prior Parliamentary ratification; (iii) a declaration that all revenue as a result of violation of the Constitution shall be accounted for and recovered via cash equivalent; and (iv) an order that the Attorney General and Minerals Commission submit all un-ratified mining leases, undertakings or contracts to Parliament for ratification. Newmont intends to vigorously defend this matter, but cannot reasonably predict the outcome.
Newmont Capital Limited and Newmont Canada FN Holdings ULC – 100% Newmont Owned
The Australian Taxation Office (“ATO”) is conducting a limited review of the Company’s prior year tax returns. The ATO is reviewing an internal reorganization executed in 2011 when Newmont completed a restructure of the shareholding in the Company’s Australian subsidiaries. To date, the Company has responded to inquiries from the ATO and provided them with supporting
NEWMONT CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(dollars in millions, except per share, per ounce and per pound amounts)
documentation for the transaction and the Company’s associated tax positions. One aspect of the ATO review relates to an Australian capital gains tax that applies to sales or transfers of stock in certain types of entities. In the fourth quarter of 2017, the ATO notified the Company that it believed the 2011 reorganization was subject to capital gains tax of approximately $85 (including interest and penalties). The Company disputed this conclusion and is vigorously defending its position that the transaction is not subject to this tax. In the fourth quarter of 2017, the Company made a $24 payment to the ATO and lodged an appeal with the Australian Federal Court. The court proceedings were held during the third quarter of 2024 and the Company is currently awaiting the judgment, which is expected during the second quarter of 2025. The Company cannot reasonably predict the outcome.
Newmont Corporation and Goldcorp Canada Ltd. – 100% Newmont Owned
On November 20, 2024, Taykwa Tagamou Nation (“TTN") filed a Statement of Claim in the Ontario Superior Court of Justice against the Ontario government, as well as Newmont Corporation and Goldcorp Canada Ltd. (collectively “Newmont”), alleging that the resumption of open pit mining at the Pamour mine in Timmins, Ontario, Canada would be without proper consultation or consideration of the cumulative impacts of TTN’s traditional territory and Aboriginal rights, and as such, the associated environmental permits previously issued by the Ontario government with respect to Pamour ought to be revoked. TTN is seeking, amongst other things: (i) a stay of all activities authorized under the permits until the case is resolved, (ii) a declaration that Ontario breached its duty to consult and violated Treaty No. 9, and section 35 of the Constitution Act (Canada) 1982, and (iii) general and aggravated damages. Newmont remains steadfast in its commitment to foster meaningful and productive relationships with First Nation communities in Canada, and had undertaken appropriate consultations with various community stakeholders, including TTN and other First Nation groups in the Timmins area – as such, the permits were properly issued by the government. Newmont intends to vigorously defend this matter, but cannot reasonably predict the outcome.
Newmont Corporation
On January 31, 2025, a putative class action lawsuit was filed against Newmont and Newmont’s Chief Executive Officer, Chief Operating Officer and Chief Financial Officer in the United States District Court for the District of Colorado. The action was brought on behalf of an alleged class of Newmont stockholders who owned stock between February 22, 2024 and October 23, 2024 (the alleged class period). Plaintiffs allege that the defendants made a series of materially false and misleading statements and/or omissions during the alleged class period regarding the Company’s projected revenue outlook and ability to deliver higher grades of gold and mineral production in violation of federal securities laws. Plaintiffs further allege that the purported class members suffered losses and damages resulting from declines in the market value of Newmont’s common stock after the Company announced its third quarter 2024 results and updated guidance on October 23, 2024. Plaintiffs seek unspecified monetary damages and other relief. Newmont intends to vigorously defend this matter, but cannot reasonably predict the outcome.
Other Commitments and Contingencies
As part of its ongoing business and operations, the Company and its affiliates are required to provide surety bonds, bank letters of credit and bank guarantees as financial support for various purposes, including environmental remediation, reclamation, exploration permitting, workers compensation programs and other general corporate purposes. At December 31, 2024 and 2023, there were $2,086 and $2,123, respectively, of outstanding letters of credit, surety bonds and bank guarantees. The obligations associated with these instruments are generally related to performance requirements that the Company addresses through its ongoing operations. As the specific requirements are met, the beneficiary of the associated instrument cancels and/or returns the instrument to the issuing entity. Certain of these instruments are associated with operating sites with long-lived assets and will remain outstanding until closure. Generally, bonding requirements associated with environmental regulation are becoming more restrictive. However, the Company believes it is in compliance with all applicable bonding obligations and will be able to satisfy future bonding requirements through existing or alternative means, as they arise.
Newmont is from time to time involved in various legal proceedings related to its business. Except in the above described proceedings, management does not believe that adverse decisions in any pending or threatened proceeding or that amounts that may be required to be paid by reason thereof will have a material adverse effect on the Company’s financial condition or results of operations.
In connection with the Company's investment in Galore Creek, Newmont will owe NovaGold Resources Inc. $75 upon the earlier of approval to construct a mine, mill and all related infrastructure for the Galore Creek project or the initiation of construction of a mine, mill or related infrastructure. The amount due is non-interest bearing. The decision for an approval and commencement of construction is contingent on the results of a prefeasibility study which is currently under way and feasibility study which has not yet occurred.
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