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Cover and table of contents

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D. C. 20549

Form 10-Q

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Quarterly Period Ended March 31, 2022

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from__________to__________

Commission File Number: 001-31240

NEWMONT CORPORATION

(Exact name of registrant as specified in its charter)



Delaware						84-1611629
(State or Other Jurisdiction of Incorporation or Organization)						(I.R.S. Employer Identification No.)

6900 E Layton Ave
Denver, Colorado						80237
(Address of Principal Executive Offices)						(Zip Code)
Registrant’s telephone number, including area code (303) 863-7414

Securities registered or to be registered pursuant to Section 12(b) of the Act.


Title of each class						Trading Symbol						Name of each exchange on which registered
Common stock, par value $1.60 per share						NEM						New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. ☒ Yes ☐ No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). ☒ Yes ☐ No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12-b2 of the Exchange Act.


Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12-b2 of the Exchange Act). ☐ Yes ☒ No

There were 793,651,139 shares of common stock outstanding on April 18, 2022.

Table of Contents

TABLE OF CONTENTS


		Page
	PART I – FINANCIAL INFORMATION
FIRST QUARTER 2022 RESULTS AND HIGHLIGHTS		1
ITEM 1.	FINANCIAL STATEMENTS	4
	Condensed Consolidated Statements of Operations	4
	Condensed Consolidated Statements of Comprehensive Income (Loss)	5
	Condensed Consolidated Statements of Cash Flows	6
	Condensed Consolidated Balance Sheets	7
	Condensed Consolidated Statement s of Changes in Equity	8
	Notes to Condensed Consolidated Financial Statements	10
	Note 1 Basis of Presentation	10
	Note 2 Summary of Significant Accounting Policies	10
	Note 3 Segment Information	11
	Note 4 Sales	14
	Note 5 Reclamation and Remediation	16
	Note 6 Other Expense, Net	17
	Note 7 Other Income (Loss), Net	17
	Note 8 Income and Mining Taxes	18
	Note 9 Fair Value Accounting	18
	Note 1 0 Investments	20
	Note 1 1 Inventories	21
	Note 1 2 Stockpiles and Ore on Leach Pads	21
	Note 1 3 Debt	21
	Note 1 4 Other Liabilities	22
	Note 15 Accumulated Other Comprehensive Income (Loss)	22
	Note 1 6 Net Change in Operating Assets and Liabilities	23
	Note 1 7 Commitments and Contingencies	23
ITEM 2.	MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS	28
	Overview	28
	Consolidated Financial Results	28
	Results of Consolidated Operations	32
	Foreign Currency Exchange Rates	37
	Liquidity and Capital Resources	37
	Environmental	41
	Non-GAAP Financial Measures	41
	Accounting Developments	51
	Safe Harbor Statement	51
ITEM 3.	QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	52
ITEM 4.	CONTROLS AND PROCEDURES	54
	PART II – OTHER INFORMATION
ITEM 1.	LEGAL PROCEEDINGS	55
ITEM 1A.	RISK FACTORS	55
ITEM 2.	UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS	55
ITEM 3.	DEFAULTS UPON SENIOR SECURITIES	55
ITEM 4.	MINE SAFETY DISCLOSURES	55
ITEM 5.	OTHER INFORMATION	56
ITEM 6.	EXHIBITS	56
SIGNATURES		57

Table of Contents

GLOSSARY OF ABBREVIATIONS


AISC (1)			All-In Sustaining Costs
ARC			Asset Retirement Cost
ASC			FASB Accounting Standard Codification
ASU			FASB Accounting Standard Update
CAS			Costs Applicable to Sales
EBITDA (1)			Earnings Before Interest, Taxes, Depreciation and Amortization
EIA			Environmental Impact Assessment
EPA			U.S. Environmental Protection Agency
ESG			Environmental, Social and Governance
Exchange Act			U.S. Securities Exchange Act of 1934
FASB			Financial Accounting Standards Board
GAAP			U.S. Generally Accepted Accounting Principles
GEO (2)			Gold Equivalent Ounces
GHG			Greenhouse Gases, which are defined by the EPA as gases that trap heat in the atmosphere
IFRS			International Financial Reporting Standards
IRC			International Royalty Corporation
MINAM			Ministry of the Environment of Peru
Mine Act			U.S. Federal Mine Safety and Health Act of 1977
MINEM			Ministry of Energy and Mines of Peru
MSHA			Federal Mine Safety and Health Administration
NPDES			National Pollutant Discharge Elimination System
SEC			U.S. Securities and Exchange Commission
Securities Act			U.S. Securities Act of 1933
U.S.			The United States of America
WTP			Water Treatment Plant

____________________________

(1)See “Non-GAAP Financial Measures” within Part I, Item 2, Management's Discussion and Analysis.

(2)See “Results of Consolidated Operations” within Part I, Item 2, Management's Discussion and Analysis.

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NEWMONT CORPORATION

FIRST QUARTER 2022 RESULTS AND HIGHLIGHTS

(unaudited, in millions, except per share, per ounce and per pound)


	Three Months Ended March 31,
		2022		2021
Financial Results:
Sales		$	3,023	$	2,872
Gold		$	2,514	$	2,482
Copper		$	99	$	52
Silver		$	156	$	168
Lead		$	44	$	44
Zinc		$	210	$	126
Costs applicable to sales (1)		$	1,435	$	1,247
Gold		$	1,184	$	1,065
Copper		$	46	$	27
Silver		$	97	$	75
Lead		$	22	$	19
Zinc		$	86	$	61
Net income (loss) from continuing operations		$	453	$	558
Net income (loss)		$	469	$	579
Net income (loss) from continuing operations attributable to Newmont stockholders		$	432	$	538
Per common share, diluted:
Net income (loss) from continuing operations attributable to Newmont stockholders		$	0.54	$	0.67
Net income (loss) attributable to Newmont stockholders		$	0.56	$	0.70
Adjusted net income (loss) (2)		$	546	$	594
Adjusted net income (loss) per share, diluted (2)		$	0.69	$	0.74
Earnings before interest, taxes and depreciation and amortization (2)		$	1,237	$	1,370
Adjusted earnings before interest, taxes and depreciation and amortization (2)		$	1,390	$	1,457
Net cash provided by (used in) operating activities of continuing operations		$	689	$	841
Free Cash Flow (2)		$	252	$	442
Cash dividends paid per common share in the period ended March 31		$	0.55	$	0.55
Cash dividends declared per common share for the period ended March 31		$	0.55	$	0.55

____________________________

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

(2)See “Non-GAAP Financial Measures” within Part I, Item 2, Management's Discussion and Analysis.

Table of Contents

NEWMONT CORPORATION

FIRST QUARTER 2022 RESULTS AND HIGHLIGHTS

(unaudited, in millions, except per share, per ounce and per pound)


	Three Months Ended March 31,
		2022		2021
Operating Results:
Consolidated gold ounces (thousands):
Produced		1,311		1,422
Sold		1,329		1,417
Attributable gold ounces (thousands):
Produced (1)		1,344		1,455
Sold (2)		1,291		1,361
Consolidated and attributable gold equivalent ounces - other metals (thousands) (3)
Produced		350		317
Sold		350		327
Consolidated and attributable - other metals:
Produced copper (million pounds)		19		14
Sold copper (million pounds)		21		12
Produced silver (thousand ounces)		8,080		8,162
Sold silver (thousand ounces)		7,652		8,531
Produced lead (million pounds)		44		50
Sold lead (million pounds)		42		50
Produced zinc (million pounds)		114		111
Sold zinc (million pounds)		120		119
Average realized price:
Gold (per ounce)		$	1,892	$	1,751
Copper (per pound)		$	4.84	$	4.20
Silver (per ounce)		$	20.36	$	19.73
Lead (per pound)		$	1.06	$	0.88
Zinc (per pound)		$	1.75	$	1.06
Consolidated costs applicable to sales: (4)(5)
Gold (per ounce)		$	890	$	752
Gold equivalent ounces - other metals (per ounce) (3)		$	717	$	555
All-in sustaining costs: (5)
Gold (per ounce)		$	1,156	$	1,039
Gold equivalent ounces - other metals (per ounce) (3)		$	997	$	819

____________________________

(1)Attributable gold ounces produced includes 69 and 91 thousand ounces for the three months ended March 31, 2022 and 2021, respectively, related to the Pueblo Viejo mine, which is 40% owned by Newmont and accounted for as an equity method investment.

(2)Attributable gold ounces sold excludes ounces related to the Pueblo Viejo mine, which is 40% owned by Newmont and accounted for as an equity method investment.

(3)For the definition of gold equivalent ounces see “Results of Consolidated Operations" within Part I, Item 2, Management's Discussion and Analysis.

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

(5)See “Non-GAAP Financial Measures” within Part I, Item 2, Management's Discussion and Analysis.

Table of Contents

First Quarter 2022 Highlights (dollars in millions, except per share, per ounce and per pound amounts)

Net income:** Reported Net income (loss) from continuing operations attributable to Newmont stockholders of $432 or $0.54 per diluted share, a decrease of $106 from the prior-year quarter primarily due to lower gold sales volume, higher Costs applicable to sales, non-cash pension settlement charges, loss on the sale of the La Zanja equity method investment and higher reclamation and remediation charges partially offset by higher realized metal prices, unrealized gains on marketable and other equity securities in 2022 compared to unrealized losses in 2021 and lower income tax expense.
Adjusted net income:** Reported Adjusted net income of $546 or $0.69 per diluted share, a decrease of $0.05 per diluted share from the prior-year quarter (see “Non-GAAP Financial Measures” within Part I, Item 2, Management's Discussion and Analysis).
Adjusted EBITDA:** Generated $1,390 in Adjusted EBITDA, a decrease of 5% from the prior-year quarter (see “Non-GAAP Financial Measures” within Part I, Item 2, Management's Discussion and Analysis).
Cash Flow:** Reported Net cash provided by (used in) operating activities of continuing operations of $689, a decrease of 18% from the prior year, and free cash flow of $252 (see “Non-GAAP Financial Measures” within Part I, Item 2, Management's Discussion and Analysis).
ESG:** Published annual sustainability report in April 2022 providing a transparent view of ESG performance.
Portfolio Improvements:** In February 2022, the Company acquired the 43.65% noncontrolling interest in Yanacocha previously held by Compañia de Minas Buenaventura S.A.A., increasing the Company’s ownership interest to 95%. Subsequent Sumitomo put option exercise, expected to closed in the second quarter of 2022, will transfer the remaining 5% interest in Yanacocha resulting in 100% ownership.
Attributable production:** Produced 1.3 million attributable ounces of gold and 350 thousand attributable gold equivalent ounces from co-products.
Financial strength:** Ended the quarter with $4.3 billion of consolidated cash and $7.3 billion of liquidity; declared dividend for the first quarter of $0.55.

COVID-19 Update

An outbreak of a novel strain of coronavirus (“COVID-19”) was declared a pandemic by the World Health Organization in March 2020. COVID-19 has since spread worldwide, posing public health risks across the globe and continues to negatively impact the global economy, disrupt global supply chains and workforce participation and create significant volatility and disruption of financial markets.

For a discussion of the precautions we are taking to protect our workforce and nearby communities, while also taking steps to preserve the long-term value of our business, refer to "COVID-19 Pandemic" within Part I, Item 1, Business on our Form 10-K filed with the SEC on February 24, 2022. For a discussion of COVID-19 related risks to the business, see Part I, Item 1A, Risk Factors on our Form 10-K filed with the SEC on February 24, 2022.

Our operations continue to be affected by a range of external factors related to the COVID-19 pandemic that are not within our control. Refer to "Consolidated Financial Results", "Results of Consolidated Operations", “Liquidity and Capital Resources” and “Non-GAAP Financial Measures" within Part I, Item 2, Management’s Discussion and Analysis of this report for additional information about the continued impacts of COVID-19 on our business and operations.

Table of Contents

PART I—FINANCIAL INFORMATION

Next: Item 1. FINANCIAL STATEMENTS.