NEWMONT MINING CORP /DE/, 10-Q filed on 4/20/2016
Quarterly Report
Document and Entity Information
3 Months Ended
Mar. 31, 2016
Apr. 13, 2016
Document And Entity Information
 
 
Entity Registrant Name
NEWMONT MINING CORP /DE/ 
 
Entity Central Index Key
0001164727 
 
Document Type
10-Q 
 
Document Period End Date
Mar. 31, 2016 
 
Amendment Flag
false 
 
Document Fiscal Year Focus
2016 
 
Document Fiscal Period Focus
Q1 
 
Current Fiscal Year End Date
--12-31 
 
Entity Current Reporting Status
Yes 
 
Entity Filer Category
Large Accelerated Filer 
 
Entity Common Stock, Shares Outstanding
 
530,530,905 
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) (USD $)
In Millions, except Per Share data, unless otherwise specified
3 Months Ended
Mar. 31, 2016
Mar. 31, 2015
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
 
 
Sales
$ 2,032 
$ 1,972 
Costs and expenses
 
 
Costs applicable to sales
1,081 1
1,027 1
Depreciation and amortization
322 
289 
Reclamation and remediation (Note 5)
25 
23 
Exploration
30 
33 
Advanced projects, research and development
28 
28 
General and administrative
57 
58 
Other expense, net
18 
17 
Total costs and expenses
1,561 
1,475 
Other income (expense)
 
 
Other income, net
98 
11 
Interest expense, net
(79)
(85)
Total other income (expense)
19 
(74)
Income (loss) before income and mining tax and other items
490 
423 
Income and mining tax benefit (expense) (Note 6)
(324)
(193)
Equity income (loss) of affiliates
(5)
(9)
Income (loss) from continuing operations
161 
221 
Income (loss) from discontinued operations
(26)
Net income (loss)
135 
229 
Net loss (income) attributable to noncontrolling interests (Note 7)
(83)
(46)
Net income (loss) attributable to Newmont stockholders
52 
183 
Net income (loss) attributable to Newmont stockholders:
 
 
Continuing operations
78 
175 
Discontinued operations
(26)
Net income (loss) attributable to Newmont stockholders
$ 52 
$ 183 
Income (loss) per common share, Basic (Note 8):
 
 
Continuing operations
$ 0.15 
$ 0.35 
Discontinued operations
$ (0.05)
$ 0.02 
Income (loss) per common share, basic
$ 0.10 
$ 0.37 
Income (loss) per common share, Diluted (Note 8)
 
 
Continuing operations
$ 0.15 
$ 0.35 
Discontinued operations
$ (0.05)
$ 0.02 
Income (loss) per common share, diluted
$ 0.10 
$ 0.37 
Cash dividends declared per common share
$ 0.025 
$ 0.025 
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Comprehensive income (loss) attributable to:
 
 
Net income (loss)
$ 135 
$ 229 
Other comprehensive income (loss):
 
 
Change in marketable securities, net of $nil and $nil tax benefit (expense), respectively
(77)
Foreign currency translation adjustments
(10)
Change in pension and other post-retirement benefits, net of $(1), $(1), $(23) and $(3), tax benefit (expense), respectively
Change in fair value of cash flow hedge instruments, net of $(8) and $4, tax benefit (expense), respectively
19 
(10)
Other comprehensive income (loss)
(52)
(14)
Comprehensive income (loss)
83 
215 
Comprehensive income (loss) attributable to:
 
 
Newmont stockholders
 
169 
Noncontrolling interests
83 
46 
Comprehensive income (loss)
$ 83 
$ 215 
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) (Parenthetical) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2016
Mar. 31, 2015
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
 
 
Unrealized gain (loss) on marketable securities, tax benefit (expense)
   
   
Change in pension and other post-retirement benefits, tax benefit (expense)
(2)
(2)
Change in fair value of cash flow hedge instruments, tax benefit (expense)
$ (8)
$ 4 
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Operating activities:
 
 
Net income (loss)
$ 135 
$ 229 
Adjustments:
 
 
Depreciation and amortization
322 
289 
Stock based compensation
16 
20 
Reclamation and remediation
24 
23 
Loss (income) from discontinued operations
26 
(8)
Impairment of investments
57 
Deferred income taxes
153 
61 
Gain on asset and investment sales, net
(104)
(44)
Other operating adjustments and impairments
92 
74 
Net change in operating assets and liabilities (Note 20)
(140)
(73)
Net cash provided by continuing operating activities
524 
628 
Net cash used in discontinued operations
(2)
(3)
Net cash provided by operating activities
522 
625 
Investing activities:
 
 
Additions to property, plant and mine development
(297)
(284)
Sales of investments
184 
29 
Proceeds from sale of other assets
44 
Other
(4)
(3)
Net cash used in investing activities
(111)
(214)
Financing activities:
 
 
Repayment of debt
(499)
(205)
Sale of noncontrolling interests
 
37 
Funding from noncontrolling interests
12 
47 
Dividends paid to noncontrolling interests
(146)
(3)
Dividends paid to common stockholders
(13)
(12)
(Increase) decrease in restricted cash
(91)
(55)
Other
(1)
(5)
Net cash used in financing activities
(738)
(196)
Effect of exchange rate changes on cash
(20)
Net change in cash and cash equivalents
(321)
195 
Cash and cash equivalents at beginning of period
2,782 
2,403 
Cash and cash equivalents at end of period
$ 2,461 
$ 2,598 
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (USD $)
In Millions, unless otherwise specified
Mar. 31, 2016
Dec. 31, 2015
ASSETS
 
 
Cash and cash equivalents
$ 2,461 
$ 2,782 
Trade receivables
273 
260 
Other accounts receivables
222 
185 
Investments (Note 13)
27 
19 
Inventories (Note 14)
710 
710 
Stockpiles and ore on leach pads (Note 15)
864 
896 
Other current assets
223 
131 
Current assets
4,780 
4,983 
Property, plant and mine development, net
14,284 
14,303 
Investments (Note 13)
240 
402 
Stockpiles and ore on leach pads (Note 15)
3,021 
3,000 
Deferred income tax assets
1,533 
1,718 
Other non-current assets
695 
730 
Total assets
24,553 
25,136 
LIABILITIES
 
 
Debt (Note 16)
335 
149 
Accounts payable
367 
396 
Employee-related benefits
196 
293 
Income and mining taxes payable
75 
38 
Other current liabilities (Note 17)
485 
540 
Current liabilities
1,458 
1,416 
Debt (Note 16)
5,369 
6,041 
Reclamation and remediation liabilities (Note 5)
1,821 
1,800 
Deferred income tax liabilities
865 
840 
Employee-related benefits
454 
437 
Other non-current liabilities (Note 17)
333 
310 
Total liabilities
10,300 
10,844 
EQUITY
 
 
Common stock
849 
847 
Additional paid-in capital
9,437 
9,427 
Accumulated other comprehensive income (loss)
(386)
(334)
Retained earnings
1,449 
1,410 
Newmont stockholders' equity
11,349 
11,350 
Noncontrolling interests
2,904 
2,942 
Total equity (Note 18)
14,253 
14,292 
Total liabilities and equity
$ 24,553 
$ 25,136 
BASIS OF PRESENTATION
BASIS OF PRESENTATION

NOTE 1     BASIS OF PRESENTATION

 

The interim Condensed Consolidated Financial Statements (“interim statements”) of Newmont Mining Corporation and its subsidiaries (collectively, “Newmont” or the “Company”) are unaudited. In the opinion of management, all adjustments (including normal recurring adjustments) and disclosures necessary for a fair presentation of these interim statements have been included. The results reported in these interim statements are not necessarily indicative of the results that may be reported for the entire year. These interim statements should be read in conjunction with Newmont’s Consolidated Financial Statements for the year ended December 31, 2015 filed on February 17, 2016 on Form 10-K. The year-end balance sheet data was derived from the audited financial statements and, in accordance with the instructions to Form 10-Q, certain information and footnote disclosures required by United States generally accepted accounting principles (“GAAP”) have been condensed or omitted. References to “A$” refers to Australian currency and “C$” refers to Canadian currency.

 

The Company has reclassified certain prior period amounts to conform to the 2016 presentation including the following items:

 

The Company retrospectively adopted Accounting Standards Update (“ASU”) 2015-03, which requires debt issuance costs to be presented as a deduction from the corresponding debt liability. Refer to Note 2 for further details.

 

The Company reclassified regional administrative costs of $14 from Other expense, net to General and administrative and community development costs of $8 from Other expense, net to Costs applicable to sales for the quarter ended March 31, 2015.

 

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

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 prices for gold, copper and, to a lesser extent, silver. 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 and Deferred income tax assets are sensitive to the outlook for commodity prices. A decline in the Company’s long term price outlook from current levels could result in material impairment charges related to these assets.

 

In September 2014, PT Newmont Nusa Tenggara (“PTNNT”) and the Government of Indonesia signed a Memorandum of Understanding (“MoU”) that resulted in the government agreeing to issue permits to allow PTNNT to export and sell copper concentrates from the Batu Hijau mine (“Batu Hijau”). The government then issued several six month export permits commencing in September 2014, March 2015 and November 2015. The most recent November permit was issued following a two month delay and expires in May 2016. Effective with the signing of the MoU, PTNNT agreed to pay certain export duties and royalties. The MoU also outlines terms for the six main elements of the Contract of Work (the investment agreement entered into by PTNNT and the Indonesian government in 1986, which includes the right to export copper concentrates and a prohibition against new taxes, duties, and levies) renegotiation, which will be incorporated into an amendment of the Contract of Work. The six areas are: 1) concession area size; 2) royalties, taxes and export duties; 3) domestic processing and refining; 4) ownership divestment; 5) utilization of local manpower, domestic goods and services; and 6) duration of the Contract of Work. Negotiations between PTNNT and the Government of Indonesia to amend the Contract of Work remain on-going. No assurances can be made at this time with respect to the outcome of such negotiations and the renewal of the export permit. The failure to receive a timely renewal may negatively impact future operations and financial results at Batu Hijau. As a result of the on-going Contract of Work renegotiations at Batu Hijau, the need for asset impairments, inventory write-downs, tax valuation allowances and other applicable accounting charges will continue to be evaluated. At this time, the Company expects operations to continue into the future. The total assets at Batu Hijau as of March 31, 2016 and December 31, 2015 were $3,726 and $3,483, respectively.

 

During the last several years, Minera Yanacocha S.R.L. (“Yanacocha”), in which the Company owns a 51.35% interest, and whose properties include the mining operations at Yanacocha and the Conga Project in Peru, has been the target of local political and community protests, some of which blocked the road between the Yanacocha mine and Conga Project complexes and the City of Cajamarca in Peru and resulted in vandalism and equipment damage. The Company cannot predict whether similar or more significant incidents will occur in the future. The recurrence of significant political or community opposition or protests could continue to adversely affect Conga’s development and the continued operation of Yanacocha. Construction activities on the Conga Project were suspended on November 30, 2011 at the request of Peru’s central government following increasing protests in Cajamarca by anti-mining activists led by the regional president. In the first half of 2014, a Conga Restart Study was completed to identify and test alternatives to advancing development of the project. Following this assessment, a new plan was developed to reduce spending to focus on only the most critical work – protecting people and assets, engaging with communities, and maintaining existing project infrastructure – while maintaining optionality. Newmont will not proceed with the full development of Conga without social acceptance, solid project economics and potentially another partner to help defray costs and risk; it is currently difficult to predict when or whether such events may occur. Under the current social and political environment, the Company does not anticipate being able to develop Conga for the foreseeable future. Should the Company be unable to develop Conga, the Company may in the future reprioritize and reallocate capital to development alternatives which may result in an impairment of the Conga Project. The total assets at Conga as of March 31, 2016 and December 31, 2015 were $1,674 and $1,678, respectively.

 

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the accounting for and recognition and disclosure of assets, liabilities, equity, revenues and expenses. 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.

 

Recently Adopted Accounting Pronouncements

 

Employee benefit plan accounting

 

In July 2015, the Financial Accounting Standards Board issued ASU No. 2015-12 related to defined benefit pension plans, defined contribution pension plans, and health and welfare benefit plans. This update designates contract value as the only required measure for fully benefit-responsive investment contracts, simplifies and makes more effective the investment disclosure requirements for employee benefit plans, and provides a simplified method for determining the measurement date for employee benefit plans. The update is effective in fiscal years, including interim periods, beginning after December 15, 2015. Adoption of this guidance effective January 1, 2016 had no impact on the Consolidated Financial Statements or disclosures.

 

Fair value measurement

 

In May 2015, ASU No. 2015-07 was issued related to investments for which fair value is measured, or are eligible to be measured, using the net asset value per share practical expedient. This update removes the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the net asset value per share practical expedient. The amendment also removes certain disclosure requirements for these investments. This update will impact the annual disclosure related to pension plan assets measured at fair value. This update is effective in fiscal years, including interim periods, beginning after December 15, 2015. Adoption of this guidance effective January 1, 2016 had no impact on the Consolidated Financial Statements.

 

Debt issuance costs

 

In April 2015, ASU No. 2015-03 was issued related to debt issuance costs. This update simplifies the presentation of debt issuance costs by requiring debt issuance costs to be presented as a deduction from the corresponding debt liability. The update is effective in fiscal years, including interim periods, beginning after December 15, 2015. The Company retrospectively adopted this guidance as of March 31, 2016. The Company reclassified $46 of debt issuance costs from Other non-current assets to Debt as of December 31, 2015. The December 31, 2015, balance sheet was adjusted as a result of the adoption of ASU 2015-03 as follows:

 

 

 

 

 

 

 

 

 

 

 

At December 31, 2015

 

 

    

As Reported

    

As Adjusted

    

Other non-current assets

 

$

776

 

$

730

 

Debt (non-current)

 

$

6,087

 

$

6,041

 

 

ASU No. 2015-03 does not specifically address the accounting for deferred financing costs related to line-of-credit arrangements. In August 2015, ASU No. 2015-15 was issued allowing for debt issuance costs associated with line-of-credit arrangements to continue to be presented as assets. The Company will treat all debt issuance costs as a reduction to the carrying value of debt.

 

Consolidations

 

In February 2015, ASU No. 2015-02 was issued related to consolidations. This update makes some targeted changes to current consolidation guidance and impacts both the voting and the variable interest consolidation models. In particular, the update changes how companies determine whether limited partnerships or similar entities are variable interest entities. The update is effective in fiscal years, including interim periods, beginning after December 15, 2015. The Company currently consolidates certain variable interest entities and adoption of this guidance effective January 1, 2016 had no impact on the Consolidated Financial Statements or disclosures.

 

Recently Issued Accounting Pronouncements

 

Stock-based compensation

 

In March 2016, ASU No. 2016-09 was issued related to stock-based compensation. The new guidance simplifies the accounting for stock-based compensation transactions, including income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. This update is effective in fiscal years, including interim periods, beginning after December 15, 2016, and early adoption is permitted. The Company is currently evaluating this guidance and the impact it will have on the Consolidated Financial Statements and disclosures.

 

Leases

 

In February 2016, ASU No. 2016-02 was issued related to leases. The new guidance modifies the classification criteria and requires lessees to recognize the assets and liabilities arising from most leases on the balance sheet. This update is effective in fiscal years, including interim periods, beginning after December 15, 2018, and early adoption is permitted. The Company is currently evaluating this guidance and the impact it will have on the Consolidated Financial Statements and disclosures.

 

Investments

 

In January 2016, ASU No. 2016-01 was issued related to financial instruments. The new guidance requires entities to measure equity investments that do not result in consolidation and are not accounted for under the equity method at fair value and recognize any changes in fair value in net income. This new guidance also updates certain disclosure requirements for these investments. This update is effective in fiscal years, including interim periods, beginning after December 15, 2017, and early adoption is not permitted. The Company is currently evaluating this guidance and the impact it will have on the Consolidated Financial Statements and disclosures.

 

Inventory

 

In July 2015, ASU No. 2015-11 was issued related to inventory, simplifying the subsequent measurement of inventories by replacing the lower of cost or market test with a lower of cost and net realizable value test. The update is effective in fiscal years, including interim periods, beginning after December 15, 2016, and early adoption is permitted. The Company does not expect the updated guidance to have an impact on the Consolidated Financial Statements or disclosures.

 

Revenue recognition

 

In May 2014, and further amended in August 2015, March 2016 and April 2016, ASUs No. 2014-09, No. 2015-14, No. 2016-08, and No. 2016-10 were issued related to revenue from contracts with customers. The new standard provides a five-step approach to be applied to all contracts with customers and also requires expanded disclosures about revenue recognition. In August 2015, the effective date was deferred to reporting periods, including interim periods, beginning after December 15, 2017, and will be applied retrospectively. Early adoption is not permitted. The Company is currently evaluating this guidance and the impact it will have on the Consolidated Financial Statements and disclosures.

BUSINESS ACQUISITION
BUSINESS ACQUISITION

NOTE 3    BUSINESS ACQUISITION

 

On June 8, 2015, the Company announced an agreement with AngloGold Ashanti Limited to acquire 100% ownership in the Cripple Creek & Victor (“CC&V”) gold mining business in Colorado. CC&V is a surface mine with heap leach operations that provides ore to a crusher and a leach facility. During 2015, the Company received $675 in net proceeds from a common stock issuance. Newmont used the proceeds, supplemented with cash from the Company’s balance sheet, to fund the acquisition. On August 3, 2015, the Company completed the acquisition of CC&V for $821, plus a 2.5% net smelter return royalty on future gold production from underground ore which had no fair value at the acquisition date. The acquisition is not material to the Company's results of operations, individually or in the aggregate; as a result, no pro forma financial information is provided.

 

The final valuation of acquired assets and liabilities assumed is not complete. The principal remaining items to be valued are stockpile and leach pad inventory values, which will be finalized as management monitors actual versus forecasted leach pad and mill performance for both recoveries and costs. The Company expects these final valuations and assessments to be completed in the first half of 2016. For further discussion of the CC&V acquisition, refer to Note 3 to the Consolidated Financial Statements for the year ended December 31, 2015 filed February 17, 2016 on Form 10-K.

 

 

SEGMENT INFORMATION
SEGMENT INFORMATION

NOTE 4     SEGMENT INFORMATION

 

The Company has organized its operations into four geographic regions. The geographic regions include North America, South America, Asia Pacific and Africa and represent the Company’s operating segments. The operating results of these operating segments are reviewed by the Company’s chief operating decision maker to make decisions about resources to be allocated to the segments and assess their performance. As a result, these operating segments represent the Company’s reportable segments. Notwithstanding this structure, the Company internally reports information on a mine-by-mine basis for each mining operation and have chosen to disclose this information on the following tables. Pre-Tax Income (Loss) from reportable segments does not reflect general corporate expenses, interest (except project-specific interest) or income and mining taxes (except for equity investments). 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. Newmont’s business activities that are not considered operating segments are included in Corporate and Other although they are not required to be included in this footnote; they are provided for reconciliation purposes. In the first quarter of 2016, the Merian project moved from Corporate and Other to the South America reportable segment as a result of the mine being included in the operating results and resource allocation of the South America segment. Segment results for prior periods have been retrospectively revised to reflect this change. The financial information relating to the Company’s segments is as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  

 

 

 

 

 

 

Advanced

  

 

 

 

 

 

 

 

  

 

 

Costs

 

Depreciation

 

Projects, Research

 

PreTax

  

 

  

 

 

 

 

 

Applicable

 

and

 

and Development 

 

Income

 

Capital

 

 

    

Sales

    

to Sales

    

Amortization

    

and Exploration

    

(Loss)

    

Expenditures(1)

 

Three Months Ended March 31, 2016

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Carlin

 

$

246

 

$

189

 

$

49

 

$

3

 

$

2

 

$

36

 

Phoenix:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gold

 

 

64

 

 

49

 

 

15

 

 

 

 

 

 

 

 

 

 

Copper

 

 

21

 

 

22

 

 

5

 

 

 

 

 

 

 

 

 

 

Total Phoenix

 

 

85

 

 

71

 

 

20

 

 

 —

 

 

(11)

 

 

4

 

Twin Creeks

 

 

159

 

 

60

 

 

13

 

 

2

 

 

83

 

 

6

 

CC&V (2)

 

 

65

 

 

33

 

 

18

 

 

3

 

 

10

 

 

21

 

Other North America

 

 

 —

 

 

 —

 

 

 —

 

 

7

 

 

(9)

 

 

36

 

North America

 

 

555

 

 

353

 

 

100

 

 

15

 

 

75

 

 

103

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Yanacocha

 

 

211

 

 

128

 

 

69

 

 

9

 

 

(11)

 

 

14

 

Merian

 

 

 —

 

 

 —

 

 

1

 

 

3

 

 

(4)

 

 

82

 

Other South America

 

 

 —

 

 

 —

 

 

3

 

 

6

 

 

(11)

 

 

 —

 

South America

 

 

211

 

 

128

 

 

73

 

 

18

 

 

(26)

 

 

96

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Boddington:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gold

 

 

204

 

 

111

 

 

23

 

 

 

 

 

 

 

 

 

 

Copper

 

 

30

 

 

23

 

 

5

 

 

 

 

 

 

 

 

 

 

Total Boddington

 

 

234

 

 

134

 

 

28

 

 

 —

 

 

64

 

 

11

 

Tanami

 

 

120

 

 

59

 

 

19

 

 

3

 

 

38

 

 

24

 

Kalgoorlie

 

 

106

 

 

65

 

 

5

 

 

1

 

 

33

 

 

3

 

Batu Hijau:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gold

 

 

283

 

 

100

 

 

20

 

 

 

 

 

 

 

 

 

 

Copper

 

 

287

 

 

130

 

 

26

 

 

 

 

 

 

 

 

 

 

Total Batu Hijau

 

 

570

 

 

230

 

 

46

 

 

1

 

 

282

 

 

10

 

Other Asia Pacific

 

 

 —

 

 

 —

 

 

4

 

 

1

 

 

(5)

 

 

 —

 

Asia Pacific

 

 

1,030

 

 

488

 

 

102

 

 

6

 

 

412

 

 

48

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ahafo

 

 

101

 

 

57

 

 

15

 

 

5

 

 

20

 

 

17

 

Akyem

 

 

135

 

 

55

 

 

29

 

 

1

 

 

47

 

 

7

 

Other Africa

 

 

 —

 

 

 —

 

 

 —

 

 

1

 

 

(2)

 

 

 —

 

Africa

 

 

236

 

 

112

 

 

44

 

 

7

 

 

65

 

 

24

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate and Other

 

 

 —

 

 

 —

 

 

3

 

 

12

 

 

(36)

 

 

2

 

Consolidated

 

$

2,032

 

$

1,081

 

$

322

 

$

58

 

$

490

 

$

273

 

 


(1)

Includes a decrease in accrued capital expenditures of $24; consolidated capital expenditures on a cash basis were $297.  

(2)

On August 3, 2015, the Company acquired the CC&V gold mining business.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  

 

 

 

 

 

 

Advanced

  

 

 

 

 

 

 

 

  

 

 

Costs

 

Depreciation

 

Projects, Research

 

PreTax

  

 

  

 

 

 

 

 

Applicable

 

and

 

and Development 

 

Income

 

Capital

 

 

    

Sales

    

to Sales

    

Amortization

    

and Exploration

    

(Loss)

    

Expenditures(1)

 

Three Months Ended March 31, 2015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Carlin

 

$

276

 

$

178

 

$

45

 

$

3

 

$

47

 

$

57

 

Phoenix:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gold

 

 

61

 

 

41

 

 

10

 

 

 

 

 

 

 

 

 

 

Copper

 

 

34

 

 

25

 

 

6

 

 

 

 

 

 

 

 

 

 

Total Phoenix

 

 

95

 

 

66

 

 

16

 

 

1

 

 

8

 

 

7

 

Twin Creeks

 

 

149

 

 

59

 

 

13

 

 

2

 

 

74

 

 

19

 

Other North America

 

 

 —

 

 

 —

 

 

 —

 

 

5

 

 

(1)

 

 

6

 

North America

 

 

520

 

 

303

 

 

74

 

 

11

 

 

128

 

 

89

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Yanacocha

 

 

301

 

 

115

 

 

71

 

 

5

 

 

94

 

 

15

 

Merian

 

 

 —

 

 

 —

 

 

 —

 

 

2

 

 

(2)

 

 

86

 

Other South America

 

 

 —

 

 

 —

 

 

3

 

 

10

 

 

(13)

 

 

 —

 

South America

 

 

301

 

 

115

 

 

74

 

 

17

 

 

79

 

 

101

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Boddington:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gold

 

 

239

 

 

157

 

 

30

 

 

 

 

 

 

 

 

 

 

Copper

 

 

47

 

 

39

 

 

7

 

 

 

 

 

 

 

 

 

 

Total Boddington

 

 

286

 

 

196

 

 

37

 

 

1

 

 

58

 

 

11

 

Tanami

 

 

120

 

 

58

 

 

19

 

 

1

 

 

45

 

 

16

 

Waihi (2)

 

 

50

 

 

19

 

 

5

 

 

1

 

 

25

 

 

6

 

Kalgoorlie

 

 

74

 

 

60

 

 

5

 

 

 —

 

 

11

 

 

7

 

Batu Hijau:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gold

 

 

114

 

 

51

 

 

9

 

 

 

 

 

 

 

 

 

 

Copper

 

 

246

 

 

123

 

 

21

 

 

 

 

 

 

 

 

 

 

Total Batu Hijau

 

 

360

 

 

174

 

 

30

 

 

1

 

 

135

 

 

20

 

Other Asia Pacific

 

 

 —

 

 

 —

 

 

4

 

 

1

 

 

(9)

 

 

 —

 

Asia Pacific

 

 

890

 

 

507

 

 

100

 

 

5

 

 

265

 

 

60

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ahafo

 

 

121

 

 

56

 

 

15

 

 

6

 

 

44

 

 

21

 

Akyem

 

 

140

 

 

46

 

 

22

 

 

 —

 

 

71

 

 

11

 

Other Africa

 

 

 —

 

 

 —

 

 

 —

 

 

1

 

 

(3)

 

 

 —

 

Africa

 

 

261

 

 

102

 

 

37

 

 

7

 

 

112

 

 

32

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate and Other

 

 

 —

 

 

 —

 

 

4

 

 

21

 

 

(161)

 

 

6

 

Consolidated

 

$

1,972

 

$

1,027

 

$

289

 

$

61

 

$

423

 

$

288

 

 


(1)

Includes an increase in accrued capital expenditures of $4 consolidated capital expenditures on a cash basis were $284.

(2)

On October 29, 2015, the Company sold the Waihi mine. 

 

RECLAMATION AND REMEDIATION
RECLAMATION AND REMEDIATION

NOTE 5     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 legal and regulatory requirements.

 

The Company’s Reclamation and remediation expense consisted of:

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended 

 

 

 

March 31, 

 

 

    

2016

    

2015

  

Reclamation Accretion

 

$

23

 

$

21

 

 

 

 

 

 

 

 

 

Remediation

 

 

1

 

 

1

 

Remediation Accretion

 

 

1

 

 

1

 

 

 

 

2

 

 

2

 

 

 

$

25

 

$

23

 

 

The following are reconciliations of Reclamation and remediation liabilities

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended 

 

 

 

March 31, 

 

 

    

2016

    

2015

 

Reclamation balance at beginning of period

 

$

1,553

 

$

1,497

 

Additions, changes in estimates and other 

 

 

2

 

 

(2)

 

Payments and other

 

 

(3)

 

 

(3)

 

Accretion expense 

 

 

23

 

 

21

 

Reclamation balance at end of period

 

$

1,575

 

$

1,513

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended 

 

 

 

March 31, 

 

 

    

2016

    

2015

 

Remediation balance at beginning of period

 

$

318

 

$

192

 

Additions, changes in estimates and other 

 

 

 —

 

 

(1)

 

Payments and other

 

 

(3)

 

 

(21)

 

Accretion expense 

 

 

1

 

 

1

 

Remediation balance at end of period

 

$

316

 

$

171

 

 

The current portion of reclamation liabilities included in Other current liabilities was $36 and $37 at March 31, 2016 and December 31, 2015, respectively. The current portion of remediation liabilities included in Other current liabilities was $34 at March 31, 2016 and December 31, 2015. At March 31, 2016 and December 31, 2015,  $1,575 and $1,553, respectively, were accrued for reclamation obligations relating to operating properties. In addition, the Company is involved in several matters concerning environmental obligations associated with former, primarily historic, mining activities. Generally, these matters concern developing and implementing remediation plans at the various sites involved. At March 31, 2016 and December 31, 2015,  $316 and $318, respectively, were accrued for such environmental remediation obligations.

 

There was $15 in current restricted cash for settling asset retirement obligations at March 31, 2016 and December 31, 2015, related to the Batu Hijau mine in Asia Pacific. Current restricted cash is included in Other current assets. Non-current restricted cash held for purposes of settling asset retirement obligations was $88 and $65 at March 31, 2016 and December 31, 2015, respectively. Of the amount at March 31, 2016,  $43 is related to the Midnite Mine in Washington State, $23 is related to the Batu Hijau mine in Asia Pacific, $13 is related to the Ahafo and Akyem mines in Ghana, Africa and $9 is related to the Con mine in Yellowknife, NWT, Canada. Of the amount at December 31, 2015,  $43 is related to the Midnite Mine in Washington State, $13 is related to the Ahafo and Akyem mines in Ghana, Africa and $9 is related to the Con mine in Yellowknife, NWT, Canada.

 

Included in Investments at March 31, 2016 and December 31, 2015, was $19 and $20, respectively, of non-current equity securities, which are legally pledged for purposes of settling reclamation and remediation obligations related to the San Jose Reservoir in Yanacocha and for various locations in Nevada.

INCOME AND MINING TAXES
INCOME AND MINING TAXES

NOTE 6     INCOME AND MINING TAXES

 

The Company’s income and mining tax expense (benefit) differed from the amounts computed by applying the United States statutory corporate income tax rate for the following reasons:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended March 31, 

 

 

      

2016

      

2015

 

Income (loss) before income and mining tax and other items

 

 

 

    

$

490

 

 

 

    

$

423

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tax at statutory rate

 

35

%

 

$

172

 

35

%

 

$

148

 

Reconciling items:

 

 

 

 

 

 

 

 

 

 

 

 

 

Percentage depletion 

 

(9)

%

 

 

(42)

 

(3)

%

 

 

(15)

 

Change in valuation allowance on deferred tax assets

 

39

%

 

 

194

 

10

%

 

 

44

 

Mining and other taxes

 

5

%

 

 

23

 

2

%

 

 

8

 

Tax impact on sale of assets

 

(7)

%

 

 

(35)

 

 —

%

 

 

 —

 

Effect of foreign earnings, net of credits

 

2

%

 

 

10

 

1

%

 

 

3

 

Other 

 

1

%

 

 

2

 

1

%

 

 

5

 

Income and mining tax benefit (expense)

 

66

%

 

$

324

 

46

%

 

$

193

 

 

A valuation allowance is provided for those deferred tax assets for which it is more likely than not that the related benefits will not be realized. In determining the amount of the valuation allowance, each quarter, the Company considers future reversals of existing taxable temporary differences, estimated future taxable income, taxable income in prior carryback year(s), as well as feasible tax planning strategies in each jurisdiction to determine if the deferred tax assets are realizable. If it is determined that the Company will not realize all or a portion of its deferred tax assets, it will place or increase a valuation allowance. Conversely, if determined that it will ultimately be able to realize all or a portion of the related benefits for which a valuation allowance has been provided, all or a portion of the related valuation allowance will be reduced. There are a number of risk factors that could impact the Company’s ability to realize the deferred tax assets.

 

The Company operates in numerous countries around the world and accordingly it is subject to, and pays taxes under the various 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 pay the income taxes determined to be due. The tax rules and regulations in many countries are 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.

 

At March 31, 2016, the Company’s total unrecognized tax liability including interest and penalties was $79 for uncertain income tax positions taken or expected to be taken on income tax returns. Of this, $37 represents the amount of unrecognized tax benefits that, if recognized, would affect the Company’s effective income tax rate.

 

As a result of the statute of limitations that expire in the next 12 months in various jurisdictions, and possible settlements of audit-related issues with taxing authorities in various jurisdictions, none of which are individually significant, the Company believes that it is reasonably possible that the total amount of its net unrecognized income tax benefits will decrease by approximately $55 to $60 in the next 12 months.

NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS
NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS

NOTE 7     NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended 

 

 

 

March 31, 

 

 

 

2016

 

2015

 

Minera Yanacocha 

    

$

(11)

    

$

5

 

Batu Hijau

 

 

95

 

 

45

 

TMAC

 

 

 —

 

 

(6)

 

Merian

 

 

(1)

 

 

 —

 

Other 

 

 

 —

 

 

2

 

 

 

$

83

 

$

46

 

 

Newmont has a 51.35% ownership interest in Minera Yanacocha S.R.L., with the remaining interests held by Compañia de Minas Buenaventura, S.A.A. (43.65%) and the International Finance Corporation (5%). Newmont consolidates Yanacocha in its Condensed Consolidated Financial Statements due to a majority voting interest.

 

Newmont has a 48.5% effective economic interest in PTNNT with remaining interests held by an affiliate of Sumitomo Corporation of Japan and various Indonesian entities. PTNNT operates the Batu Hijau copper and gold mine in Indonesia. Newmont consolidates Batu Hijau in its Condensed Consolidated Financial Statements as the primary beneficiary in the variable interest entity.

 

Newmont has a 29.37% ownership interest in TMAC Resources Inc. (“TMAC”), with the remaining interests held by TMAC management and various outside investors. Newmont’s retained investment in TMAC is accounted for as an equity method investment. Refer to Note 13 for additional information.

 

Newmont has a 75% economic interest in the Merian Project, with the remaining interests held by Staatsolie (a company wholly owned by the Republic of Suriname). Newmont consolidates the Merian Project through Surgold, an entity 100% directly owned by Newmont. The project began construction in August 2014 and is planned to be in commercial production by the fourth quarter of 2016. Newmont consolidates the Merian Project in its Condensed Consolidated Financial Statements as the primary beneficiary in the variable interest entity.

 

The following summarizes the assets and liabilities, inclusive of deferred tax liabilities, of our consolidated variable interest entities (including noncontrolling interests).

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

At March 31, 2016

 

At December 31, 2015

 

 

    

Batu Hijau

    

Merian

    

Batu Hijau

    

Merian

 

Current assets

    

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

680

 

$

18

 

$

419

 

$

16

 

Trade receivables

 

 

147

 

 

 —

 

 

179

 

 

 —

 

Other current assets (1)

 

 

446

 

 

47

 

 

362

 

 

23

 

 

 

 

1,273

 

 

65

 

 

960

 

 

39

 

Non-current assets

 

 

 

 

 

 

 

 

 

 

 

 

 

Property, plant and mine development, net

 

 

1,072

 

 

641

 

 

1,103

 

 

564

 

Stockpiles and ore on leach pads

 

 

1,064

 

 

 —

 

 

1,104

 

 

 —

 

Other non-current assets (2)

 

 

317

 

 

 —

 

 

316

 

 

 —

 

Total assets

 

$

3,726

 

$

706

 

$

3,483

 

$

603

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

Debt

 

$

327

 

$

 —

 

$

140

 

$

 —

 

Accounts Payable

 

 

59

 

 

 —

 

 

81

 

 

 —

 

Other current liabilities (3)

 

 

125

 

 

38

 

 

71

 

 

35

 

 

 

 

511

 

 

38

 

 

292

 

 

35

 

Non-current liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

Debt

 

 

2

 

 

 —

 

 

187

 

 

 —

 

Reclamation and remediation liabilities

 

 

249

 

 

8

 

 

245

 

 

8

 

Other non-current liabilities (4)

 

 

351

 

 

 —

 

 

330

 

 

 —

 

Total liabilities

 

$

1,113

 

$

46

 

$

1,054

 

$

43

 

 


(1)

Other current assets include other accounts receivables, inventories, stockpiles and ore on leach pads, prepaid assets, restricted cash, and other current assets.

(2)

Other non-current assets include tax receivables and other non-current assets.

(3)

Other current liabilities include employee-related benefits, tax payables, reclamation and remediation liabilities and other current liabilities.

(4)

Other non-current liabilities include deferred income tax liabilities and employee-related benefits.

 

INCOME (LOSS) PER SHARE
INCOME (LOSS) PER COMMON SHARE

 

NOTE 8    INCOME (LOSS) PER COMMON SHARE

 

Basic income per common share is computed by dividing income available to Newmont common stockholders by the weighted average number of common shares outstanding during the period. Diluted income per common share is computed similarly except that weighted average common shares is increased to reflect all dilutive instruments, including employee stock awards and convertible debt instruments. The dilutive effects of Newmont’s dilutive securities are calculated using the treasury stock method and only those instruments that result in a reduction in income per share are included in the calculation.

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended 

 

 

 

March 31, 

 

 

    

2016

    

2015

 

Net income (loss) attributable to Newmont stockholders 

 

 

 

 

 

 

 

Continuing operations

 

$

78

 

$

175

 

Discontinued operations 

 

 

(26)

 

 

8

 

 

 

$

52

 

$

183

 

 

 

 

 

 

 

 

 

Weighted average common shares (millions):

 

 

 

 

 

 

 

Basic 

 

 

530

 

 

499

 

Effect of employee stock-based awards 

 

 

1

 

 

1

 

Diluted 

 

 

531

 

 

500

 

 

 

 

 

 

 

 

 

Income (loss) per common share

 

 

 

 

 

 

 

Basic:

 

 

 

 

 

 

 

Continuing operations 

 

$

0.15

 

$

0.35

 

Discontinued operations 

 

 

(0.05)

 

 

0.02

 

 

 

$

0.10

 

$

0.37

 

Diluted:

 

 

 

 

 

 

 

Continuing operations 

 

$

0.15

 

$

0.35

 

Discontinued operations 

 

 

(0.05)

 

 

0.02

 

 

 

$

0.10

 

$

0.37

 

 

Options to purchase 2 million and 3 million shares of common stock at weighted average exercise prices of $52 and $48 per share were outstanding at March 31, 2016 and 2015, respectively, but were not included in the computation of diluted weighted average common shares because their exercise prices exceeded the average price of the Company’s common stock for the respective periods presented.

 

Newmont is required to settle the principal amount of its 2017 Convertible Senior Note in cash and may elect to settle the remaining conversion premium (average share price in excess of the conversion price), if any, in cash, shares or a combination thereof. The effect of contingently convertible instruments on diluted earnings per share is calculated under the net share settlement method. The conversion price exceeded the Company’s share price for the periods presented, therefore no additional shares were included in the computation of diluted weighted average common shares.

 

EMPLOYEE PENSION AND OTHER BENEFIT PLANS
EMPLOYEE PENSION AND OTHER BENEFIT PLANS

NOTE 9    EMPLOYEE PENSION AND OTHER BENEFIT PLANS

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended 

 

 

 

March 31, 

 

 

    

2016

    

2015

 

Pension benefit costs, net 

 

 

 

 

 

 

 

Service cost 

 

$

7

 

$

8

 

Interest cost 

 

 

12

 

 

11

 

Expected return on plan assets 

 

 

(14)

 

 

(15)

 

Amortization, net

 

 

6

 

 

7

 

 

 

$

11

 

$

11

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended 

 

 

 

March 31, 

 

 

    

2016

    

2015

 

Other benefit costs, net 

 

 

 

  

 

 

 

Service cost 

 

$

 —

 

$

1

 

Interest cost 

 

 

1

 

 

2

 

Amortization, net

 

 

(1)

 

 

 —

 

 

 

$

 —

 

$

3

 

 

STOCK-BASED COMPENSATION
STOCK BASED COMPENSATION

NOTE 10    STOCK-BASED COMPENSATION

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended 

 

 

 

March 31, 

 

 

    

2016

    

2015

 

Stock-based compensation:

 

 

 

  

 

 

 

Performance leveraged stock units

 

$

8

 

$

10

 

Restricted stock units

 

 

6

 

 

8

 

Strategic stock units

 

 

2

 

 

2

 

 

 

$

16

 

$

20

 

 

 

FAIR VALUE ACCOUNTING
FAIR VALUE ACCOUNTING

NOTE 11    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 1Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities;

 

Level 2Quoted prices in markets that are not active, or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability; and

 

Level 3Prices 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 basis (at least annually) 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 March 31, 2016

 

 

    

Total

    

Level 1

    

Level 2

    

Level 3

    

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents 

 

$

2,461

 

$

2,461

 

$

 —

 

$

 —

 

Restricted assets (1)

 

 

223

 

 

223

 

 

 —

 

 

 —

 

Marketable equity securities: 

 

 

 

 

 

 

 

 

 

 

 

 

 

Extractive industries

 

 

30

 

 

30

 

 

 —

 

 

 —

 

Other

 

 

16

 

 

16

 

 

 —

 

 

 —

 

Marketable debt securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

Asset backed commercial paper 

 

 

20

 

 

 —

 

 

 —

 

 

20

 

Auction rate securities 

 

 

7

 

 

 —

 

 

 —

 

 

7

 

Trade receivable from provisional copper and
gold concentrate sales, net 

 

 

232

 

 

232

 

 

 —

 

 

 —

 

 

 

$

2,989

 

$

2,962

 

$

 —

 

$

27

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

Debt (2)

 

$

5,625

 

$

 —

 

$

5,625

 

$

 —

 

Derivative instruments, net: 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign exchange forward contracts

 

 

41

 

 

 —

 

 

41

 

 

 —

 

Diesel forward contracts

 

 

25

 

 

 —

 

 

25

 

 

 —

 

Boddington contingent consideration

 

 

10

 

 

 —

 

 

 —

 

 

10

 

Holt property royalty

 

 

164

 

 

 —

 

 

 —

 

 

164

 

 

 

$

5,865

 

$

 —

 

$

5,691

 

$

174

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fair Value at December 31, 2015

 

 

    

Total

    

Level 1

    

Level 2

    

Level 3

    

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents 

 

$

2,782

 

$

2,782

 

$

 —

 

$

 —

 

Restricted assets (1)

 

 

132

 

 

132

 

 

 —

 

 

 —

 

Marketable equity securities: 

 

 

 

 

 

 

 

 

 

 

 

 

 

Extractive industries

 

 

186

 

 

186

 

 

 —

 

 

 —

 

Other

 

 

16

 

 

16

 

 

 —

 

 

 —

 

Marketable debt securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

Asset backed commercial paper 

 

 

18

 

 

 —

 

 

 —

 

 

18

 

Auction rate securities 

 

 

7

 

 

 —

 

 

 —

 

 

7

 

Trade receivable from provisional copper and
gold concentrate sales, net 

 

 

178

 

 

178

 

 

 —

 

 

 —

 

 

 

$

3,319

 

$

3,294

 

$

 —

 

$

25

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

Debt (2)

 

$

5,469

 

$

 —

 

$

5,469

 

$

 —

 

Derivative instruments, net: 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign exchange forward contracts

 

 

60

 

 

 —

 

 

60

 

 

 —

 

Diesel forward contracts

 

 

32

 

 

 —

 

 

32

 

 

 —

 

Boddington contingent consideration

 

 

10

 

 

 —

 

 

 —

 

 

10

 

Holt property royalty

 

 

129

 

 

 —

 

 

 —

 

 

129

 

 

 

$

5,700

 

$

 —

 

$

5,561

 

$

139

 

 


(1)

Restricted asset carrying amounts approximate their fair value.

(2)

Debt, exclusive of capital leases, is carried at amortized cost. The outstanding carrying value was $5,682 and $6,167 at March 31, 2016 and December 31, 2015, respectively. The fair value measurement of debt was based on prices obtained from readily available pricing sources.

 

The fair values of the derivative instruments in the table above are presented on a net basis. The gross amounts related to the fair value of the derivatives instruments above are included in Note 12. All other fair value disclosures in the above table are presented on a gross basis.

 

The Company’s cash and cash equivalent instruments are classified within Level 1 of the fair value hierarchy because they are valued using quoted market prices. The cash and cash equivalent instruments that are valued based on quoted market prices in active markets are primarily money market securities and U.S. Treasury securities.

 

The Company’s marketable equity securities are valued using quoted market prices in active markets and as such are classified within Level 1 of the fair value hierarchy. The securities are segregated based on industry. The fair value of the marketable equity securities is 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 debt securities include investments in auction rate securities and asset backed commercial paper. The Company reviews the fair value for auction rate securities and asset backed commercial paper on a quarterly basis. The marketable debt securities are traded in markets that are not active, trade infrequently and have little price transparency. Therefore, the investments are classified as Level 3 of the fair value hierarchy. See the table below which sets forth a summary of the quantitative and qualitative information related to the significant unobservable inputs used in the calculation of the fair value.

 

The Company’s net trade receivable from provisional copper and gold concentrate sales, subject to final pricing, is valued using quoted market prices based on forward curves and, as such, is classified within Level 1 of the fair value hierarchy.

 

The Company’s derivative instruments are valued using pricing models and the Company generally uses similar models to value similar instruments. Valuation models require a variety of inputs, including contractual terms, market prices, forward curves, measures of volatility, and correlations of such inputs. The Company’s 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.

 

The estimated value of the Boddington contingent royalty was determined using a (1) discounted cash flow model, (2) Monte Carlo valuation model to simulate future gold and copper prices using the Company’s long term gold and copper prices and (3) Monte Carlo valuation model to simulate costs applicable to sales using the Company’s Australian to U.S. dollar exchange rate. This contingent royalty is capped at $100, of which $72 has been paid to date. The liability remained unchanged at $10 for the quarter ended March 31, 2016.  

 

The estimated fair value of the Holt sliding scale royalty was determined using a (1) discounted cash flow model,  (2) Monte Carlo valuation model to simulate future gold prices using the Company’s long term gold prices, (3) various gold production scenarios from reserve and resource information and (4) weighted average discount rate. The sliding scale royalty liability is classified within Level 3 of the fair value hierarchy.

 

The following tables set forth a summary of the quantitative and qualitative information related to the unobservable inputs used in the calculation of the Company’s Level 3 financial assets and liabilities at March 31, 2016 and December 31, 2015:  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    

   At March 31,   

    

 

    

 

    

Range/Weighted

 

Description

    

2016

    

Valuation technique

    

Unobservable input

    

average

 

Auction rate securities

 

$

7

 

Risk-adjusted indicative price

 

Recoverability rate

 

 

85

%

Asset backed commercial paper

 

$

20

 

Risk-adjusted indicative price

 

Recoverability rate

 

 

90

%

Boddington contingent consideration

 

$

10

 

Monte Carlo

 

Discount rate

 

 

3.74

%

 

 

 

 

 

 

 

Short-term gold price

 

$

1,183

 

 

 

 

 

 

 

 

Long-term gold price

 

$

1,300

 

 

 

 

 

 

 

 

Short-term copper price

 

$

2.12

 

 

 

 

 

 

 

 

Long-term copper price

 

$

3.00

 

 

 

 

 

 

 

 

Long-term Australian to U.S. dollar exchange rate

 

$

0.80

 

Holt property royalty

 

$

164

 

Monte Carlo

 

Discount rate

 

 

3.86

%

 

 

 

 

 

 

 

Short-term gold price

 

$

1,183

 

 

 

 

 

 

 

 

Long-term gold price

 

$

1,300

 

 

 

 

 

 

 

 

Gold production scenarios (in 000's of ounces)

 

 

381 - 1,620

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    

At December 31, 

    

 

    

 

    

Range/Weighted

 

Description

    

2015

    

Valuation technique

    

Unobservable input

    

average

 

Auction rate securities

 

$

7

 

Risk-adjusted indicative price

 

Recoverability rate

 

 

85

%

Asset backed commercial paper

 

$

18

 

Risk-adjusted indicative price

 

Recoverability rate

 

 

90

%

Boddington contingent consideration

 

$

10

 

Monte Carlo

 

Discount rate

 

 

5.32

%

 

 

 

 

 

 

 

Short-term gold price

 

$

1,106

 

 

 

 

 

 

 

 

Long-term gold price

 

$

1,300

 

 

 

 

 

 

 

 

Short-term copper price

 

$

2.22

 

 

 

 

 

 

 

 

Long-term copper price

 

$

3.00

 

 

 

 

 

 

 

 

Long-term Australian to U.S. dollar exchange rate

 

$

0.80

 

Holt property royalty

 

$

129

 

Monte Carlo

 

Discount rate

 

 

5.06

%

 

 

 

 

 

 

 

Short-term gold price

 

$

1,106

 

 

 

 

 

 

 

 

Long-term gold price

 

$

1,300

 

 

 

 

 

 

 

 

Gold production scenarios (in 000's of ounces)

 

 

398 - 1,636

 

 

The following tables set forth a summary of changes in the fair value of the Company’s Level 3 financial assets and liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asset

 

 

 

 

 

 

 

 

 

 

 

Auction

 

Backed

 

 

 

Boddington

 

Holt

 

 

 

 

 

Rate

 

Commercial

 

Total

 

Contingent

 

Property

 

Total

 

 

   

Securities

   

Paper

   

   Assets   

   

Consideration (1)

   

Royalty (2)

   

Liabilities

   

Fair value at December 31, 2015

 

$

7

 

$

18

 

$

25

 

$

10

 

$

129

 

$

139

 

Settlements

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

(2)

 

 

(2)

 

Revaluation

 

 

 —

 

 

2

 

 

2

 

 

 —

 

 

37

 

 

37

 

Fair value at March 31, 2016

 

$

7

 

$

20

 

$

27

 

$

10

 

$

164

 

$

174

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asset

 

 

 

 

 

 

 

 

 

 

 

Auction

 

Backed

 

 

 

Boddington

 

Holt

 

 

 

 

 

Rate

 

Commercial

 

Total

 

Contingent

 

Property

 

Total

 

 

   

Securities

   

Paper

   

   Assets   

   

Consideration (1)

   

Royalty (2)

   

Liabilities

   

Fair value at December 31, 2014

 

$

6

 

$

24

 

$

30

 

$

10

 

$

179

 

$

189

 

Settlements

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

(3)

 

 

(3)

 

Revaluation

 

 

1

 

 

(3)

 

 

(2)

 

 

 —

 

 

(12)

 

 

(12)

 

Fair value at March 31, 2015

 

$

7

 

$

21

 

$

28

 

$

10

 

$

164

 

$

174

 

 


(1)

The gain (loss) recognized is included in Other expense, net.

(2)

The gain (loss) recognized is included in Income (loss) from discontinued operations.

 

DERIVATIVE INSTRUMENTS
DERIVATIVE INSTRUMENTS

NOTE 12    DERIVATIVE INSTRUMENTS 

 

The Company’s strategy is to provide shareholders with leverage to changes in gold and copper prices by selling its production at spot market prices. Consequently, the Company does not hedge its gold and copper sales. The Company has and will continue to manage certain risks associated with commodity input costs, interest rates and foreign currencies using the derivative market. All of the derivative instruments described below were transacted for risk management purposes and qualify as cash flow hedges.

 

Cash Flow Hedges

 

The following foreign currency and diesel contracts are designated as cash flow hedges, and as such, the effective portion of unrealized changes in market 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. Gains and losses from hedge ineffectiveness are recognized in current earnings. 

 

Foreign Currency Contracts

 

The Company had the following foreign currency derivative contracts in Asia Pacific outstanding at March 31, 2016:

 

 

 

 

 

 

 

 

 

 

 

 

 

Expected Maturity Date

 

 

    

2016

    

2017

    

2018

    

Total/Average

    

A$ Operating Fixed Forward Contracts: 

 

 

 

 

 

 

 

 

 

A$ notional (millions) 

 

112

 

105

 

6

 

223

 

Average rate ($/A$) 

 

0.95

 

0.93

 

0.92

 

0.94

 

Expected hedge ratio

 

12

%  

8

%  

4

%  

 

 

 

The A$ hedges run through the first quarter of 2018.

 

Diesel Fixed Forward Contracts

 

The Company had the following diesel derivative contracts in North America outstanding at March 31, 2016:  

 

 

 

 

 

 

 

 

 

 

 

Expected Maturity Date

 

 

    

2016

    

2017

    

Total/Average

    

Diesel Fixed Forward Contracts:

 

 

 

 

 

 

 

Diesel gallons (millions) 

 

17

 

11

 

28

 

Average rate ($/gallon) 

 

2.22

 

1.84

 

2.06

 

Expected hedge ratio

 

58

%  

38

%  

 

 

 

Newmont hedges a portion of its operating cost exposure related to diesel consumed at its Nevada operations to reduce the variability in diesel prices. The hedging instruments consist of a series of financially settled fixed forward contracts with expiration dates up to two years.

 

Derivative Instrument Fair Values

 

The Company had the following derivative instruments designated as hedges at March 31, 2016 and December 31, 2015:  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fair Values of Derivative Instruments

 

 

 

At March 31, 2016

 

 

  

Other

  

Other

  

Other

  

Other

 

 

  

Current

  

Non-current

  

Current

  

Non-current

 

 

    

Assets

    

Assets

    

Liabilities

    

Liabilities

    

Foreign currency exchange contracts:

 

 

 

 

 

 

 

 

 

 

 

 

 

A$ operating fixed forwards 

 

$

 —

 

$

 —

 

$

27

 

$

14

 

Diesel fixed forwards

 

 

 —

 

 

 —

 

 

22

 

 

3

 

Total derivative instruments (Note 17)

 

$

 —

 

$

 —

 

$

49

 

$

17

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fair Values of Derivative Instruments

 

 

 

At December 31, 2015

 

 

  

Other

  

Other

  

Other

  

Other

 

 

  

Current

  

Non-current

  

Current

  

Non-current

 

 

    

Assets

    

Assets

    

Liabilities

    

Liabilities

    

Foreign currency exchange contracts:

 

 

 

 

 

 

 

 

 

 

 

 

 

A$ operating fixed forwards 

 

$

 —

 

$

 —

 

$

36

 

$

24

 

Diesel fixed forwards

 

 

 —

 

 

 —

 

 

27

 

 

5

 

Total derivative instruments (Note 17)

 

$

 —

 

$

 —

 

$

63

 

$

29

 

 

As of March 31, 2016 and December 31, 2015, all derivative instruments held by the Company were subject to enforceable master netting arrangements held by various financial institutions. In general, the terms of the Company’s agreements provide for offsetting of amounts payable or receivable between it and the counterparty, at the election of both parties, for transactions that occur on the same date and in the same currency. The Company’s agreements also provide that in the event of an early termination, the counterparties have the right to offset amounts owed or owing under that and any other agreement with the same counterparty. The Company’s accounting policy is to not offset these positions in its accompanying balance sheets. As of March 31, 2016 and December 31, 2015, all gross amounts presented in the accompanying balance sheets were in a liability position, with no offsetting (asset) amounts.

 

The following table shows the location and amount of gains (losses) reported in the Company’s Condensed Consolidated Financial Statements related to the Company’s hedges.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign Currency

 

Diesel Fixed

 

Interest

 

 

 

Exchange Contracts

 

Forward Contracts

 

Rate Contracts

 

 

    

2016

    

2015

    

2016

    

2015

    

2016

    

2015

 

For the three months ended March 31, 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash flow hedging relationships:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gain (loss) recognized in Other comprehensive income (loss) (effective portion)

 

$

7

 

$

(27)

 

$

(2)

 

$

(5)

 

$

 —

 

$

 —

 

Gain (loss) reclassified from Accumulated other comprehensive income (loss) into income (loss) (effective portion) (1)

 

$

(10)

 

$

(7)

 

$

(9)

 

$

(7)

 

$

(3)

 

$

(5)

 

Gain (loss) reclassified from Accumulated other comprehensive income (loss) into income (loss) (ineffective portion) (2)

 

$

 —

 

$

 —

 

$

 —

 

$

1

 

$

 —

 

$

 —

 

 


(1)

The gain (loss) recognized for the effective portion of cash flow hedges is included in Cost applicable to sales and Interest expense,  net.  

(2)

The ineffective portion recognized for cash flow hedges is included in Other income, net.

 

Based on fair values at March 31, 2016, the amount to be reclassified from Accumulated other comprehensive income (loss), net of tax to income for derivative instruments during the next 12 months is a loss of approximately $48.

 

Provisional Gold and Copper Sales

 

The Company’s provisional gold and copper concentrate sales 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 gold and copper concentrates at the prevailing indices’ prices at the time of sale. The embedded derivative, which does not qualify for hedge accounting, is marked to market through earnings each period prior to final settlement.

 

At March 31, 2016, Newmont had gold and copper sales of 227,000 ounces and 194 million pounds priced at an average of $1,238 per ounce and $2.19 per pound, respectively, subject to final pricing over the next several months.

INVESTMENTS
INVESTMENTS

NOTE 13    INVESTMENTS 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

At March 31, 2016

 

 

 

Cost/Equity

 

Unrealized

 

Fair/Equity

 

 

    

Basis

    

Gain

    

Loss

    

Basis

 

Current: 

 

 

 

 

 

 

 

 

 

 

 

 

 

Marketable Equity Securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

Gabriel Resources Ltd.

 

$

5

 

$

2

 

$

 —

 

$

7

 

Other

 

 

15

 

 

6

 

 

(1)

 

 

20

 

 

 

$

20

 

$

8

 

$

(1)

 

$

27

 

Non-current: 

 

 

 

 

 

 

 

 

 

 

 

 

 

Marketable Debt Securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

Asset backed commercial paper

 

$

19

 

$

1

 

$

 —

 

$

20

 

Auction rate securities 

 

 

8

 

 

 —

 

 

(1)

 

 

7

 

 

 

 

27

 

 

1

 

 

(1)

 

 

27

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Marketable Equity Securities

 

 

18

 

 

1

 

 

 —

 

 

19

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other investments, at cost   

 

 

6

 

 

 —

 

 

 —

 

 

6

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity Method Investments: 

 

 

 

 

 

 

 

 

 

 

 

 

 

TMAC

 

 

101

 

 

 —

 

 

 —

 

 

101

 

Minera La Zanja S.R.L.

 

 

69

 

 

 —

 

 

 —

 

 

69

 

Novo Resources Corp.

 

 

15

 

 

 —

 

 

 —

 

 

15

 

Euronimba Ltd.

 

 

3

 

 

 —

 

 

 —

 

 

3

 

 

 

$

239

 

$

2

 

$

(1)

 

$

240

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

At December 31, 2015

 

 

 

Cost/Equity

 

Unrealized

 

Fair/Equity

 

 

    

Basis

    

Gain

    

Loss

    

Basis

 

Current: 

 

 

 

 

 

 

 

 

 

 

 

 

 

Marketable Equity Securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

Gabriel Resources Ltd.

 

$

5

 

$

 —

 

$

 —

 

$

5

 

Other

 

 

14

 

 

2

 

 

(2)

 

 

14

 

 

 

$

19

 

$

2

 

$

(2)

 

$

19

 

Non-current: 

 

 

 

 

 

 

 

 

 

 

 

 

 

Marketable Debt Securities: 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asset backed commercial paper

 

$

17

 

$

1

 

$

 —

 

$

18

 

Auction rate securities 

 

 

8

 

 

 —

 

 

(1)

 

 

7

 

 

 

 

25

 

 

1

 

 

(1)

 

 

25

 

Marketable Equity Securities: 

 

 

 

 

 

 

 

 

 

 

 

 

 

Regis Resources Ltd.

 

 

81

 

 

82

 

 

 —

 

 

163

 

Other 

 

 

17

 

 

3

 

 

 —

 

 

20

 

 

 

 

98

 

 

85

 

 

 —

 

 

183

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other investments, at cost   

 

 

6

 

 

 —

 

 

 —

 

 

6

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity Method Investments: 

 

 

 

 

 

 

 

 

 

 

 

 

 

TMAC

 

 

101

 

 

 —

 

 

 —

 

 

101

 

Minera La Zanja S.R.L.

 

 

71

 

 

 —

 

 

 —

 

 

71

 

Novo Resources Corp.

 

 

14

 

 

 —

 

 

 —

 

 

14

 

Euronimba Ltd.

 

 

2

 

 

 —

 

 

 —

 

 

2

 

 

 

$

317

 

$

86

 

$

(1)

 

$

402

 

 

In March 2016, the Company sold its investment in Regis Resources Ltd. for $184, resulting in a pre-tax gain of $103 recorded in Other income, net. The cost of the investment sold was determined using the specific identification method.

 

During the first quarter of 2016, Newmont participated in the TMAC offering acquiring 242,979 shares for C$2, maintaining its 29.37% ownership interest. During 2015, Newmont determined that TMAC was no longer considered a variable interest entity, and should no longer be consolidated into Newmont’s financial results due to a number of financing events which took place during the year. Newmont deconsolidated the assets, liabilities, and non-controlling interest related to TMAC and recognized a gain of $76, recorded within Other income, net, during the third quarter of 2015. The fair value of the retained investment was valued utilizing the market approach applying the IPO share price. Newmont’s retained investment in TMAC is accounted for as an equity method investment.

 

During the three months ended March 31, 2016, the Company recognized no investment impairments for other-than-temporary declines in value. As of March 31, 2016, there was a $4 increase in the fair value of marketable securities previously impaired, primarily due to Pilot Gold and Gabriel Resources Ltd. During the three months ended March 31, 2015, the Company recognized investment impairments for other-than-temporary declines in value of $57, primarily related to Regis Resources Ltd., as a result of the continued decline in stock price. As of March 31, 2015, there was an $18 decrease in the fair value of marketable securities previously impaired, primarily due to Gabriel Resources Ltd.

 

The following tables present the gross unrealized losses and fair value of the Company’s investments with unrealized losses that are deemed to be temporarily impaired, aggregated by length of time that the individual securities have been in a continuous unrealized loss position:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Less than 12 Months

 

12 Months or Greater

 

Total

 

At March 31, 2016

    

Fair Value

    

Unrealized
Losses

    

Fair Value

    

Unrealized
Losses

    

Fair Value

    

Unrealized
Losses

 

Marketable equity securities

 

$

3

 

$

1

 

$

 —

 

$

 —

 

$

3

 

$

1

 

Auction rate securities 

 

 

 —

 

 

 —

 

 

7

 

 

1

 

 

7

 

 

1

 

 

 

$

3

 

$

1

 

$

7

 

$

1

 

$

10

 

$

2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Less than 12 Months

 

12 Months or Greater

 

Total

 

At December 31, 2015

    

Fair Value

    

Unrealized
Losses

    

Fair Value

    

Unrealized
Losses

    

Fair Value

    

Unrealized
Losses

 

Marketable equity securities

 

$

5

 

$

2

 

$

 —

 

$

 —

 

$

5

 

$

2

 

Auction rate securities 

 

 

 —

 

 

 —

 

 

7

 

 

1

 

 

7

 

 

1

 

 

 

$

5

 

$

2

 

$

7

 

$

1

 

$

12

 

$

3

 

 

While the fair value of some of the Company’s investments in marketable equity securities and auction rate securities are below their respective cost, the Company views these declines as temporary. The Company has the ability and intends to hold its securities until maturity or such time that the market recovers.

INVENTORIES (INVENTORIES)
INVENTORIES

NOTE 14    INVENTORIES 

 

 

 

 

 

 

 

 

 

 

 

    At March 31,     

 

At December 31, 

 

 

    

2016

    

2015

 

Materials and supplies

 

$

459

 

$

454

 

In-process

 

 

131

 

 

118

 

Concentrate and copper cathode

 

 

109

 

 

128

 

Precious metals

 

 

11

 

 

10

 

 

 

$

710

 

$

710

 

 

STOCKPILES AND ORE ON LEACH PADS (Stockpiles and ore on leach pads)
STOCKPILES AND ORE ON LEACH PADS

NOTE 15    STOCKPILES AND ORE ON LEACH PADS 

 

 

 

 

 

 

 

 

 

 

 

    At March 31,     

 

At December 31, 

 

 

    

2016

    

2015

 

Current:

 

 

   

 

 

   

 

Stockpiles

 

$

494

 

$

554

 

Ore on leach pads

 

 

370

 

 

342

 

 

 

$

864

 

$

896

 

Non-current:

 

 

   

 

 

   

 

Stockpiles

 

$

2,655

 

$

2,622

 

Ore on leach pads

 

 

366

 

 

378

 

 

 

$

3,021

 

$

3,000

 

 

 

 

 

 

 

 

 

 

 

 

 

    At March 31,     

 

At December 31, 

 

 

    

2016

    

2015

 

Stockpiles and ore on leach pads:

 

 

 

 

 

 

 

Carlin

 

$

407

 

$

394

 

Phoenix

 

 

98

 

 

106

 

Twin Creeks

 

 

339

 

 

329

 

CC&V

 

 

348

 

 

319

 

Yanacocha

 

 

399

 

 

440

 

Merian

 

 

5

 

 

4

 

Boddington

 

 

390

 

 

390

 

Tanami

 

 

9

 

 

12

 

Kalgoorlie

 

 

107

 

 

109

 

Batu Hijau

 

 

1,192

 

 

1,218

 

Ahafo

 

 

469

 

 

456

 

Akyem

 

 

122

 

 

119

 

 

 

$

3,885

 

$

3,896

 

 

During the three months ended March 31, 2016, the Company recorded write-downs of $50 classified as components of Costs applicable to sales and write-downs of $24 classified as components of Depreciation and amortization, respectively, to reduce the carrying value of stockpiles and ore on leach pads to net realizable value. Adjustments to net realizable value are a result of higher future processing costs in addition to stripping campaigns driving lower grade and lower recovery resulting in higher costs per unit. Of the write-downs in the first quarter of 2016,  $27 is related to Carlin, $2 to Twin Creeks, and $45 to Yanacocha.

DEBT
DEBT

NOTE 16    DEBT

 

On March 29, 2016, the Company accepted for purchase approximately $274 of its 2019 Notes and $226 of its 2039 Notes through a debt tender offer. The company recorded a net pre-tax loss of $4 in Other income, net as a result of the debt tender offer. Additionally, the Company reclassified $2 in Interest expense, net from Accumulated other comprehensive income (loss) related to the acceleration of the unrealized gains on the treasury rate lock contracts which were entered into upon issuance of the Notes in 2009.

 

There was $94 and $nil in current restricted cash at March 31, 2016 and December 31, 2015, respectively, for payments on the PTNNT revolving credit facility as required by local statutes. Current restricted cash is included in Other current assets.

 

Scheduled minimum debt repayments are $143 for the remainder of 2016,  $765 in 2017,  $nil in 2018,  $901 in 2019,  $nil in 2020 and $3,974 thereafter. Scheduled minimum capital lease repayments are $4 in 2016,  $6 in 2017,  $4 in 2018,  $4 in 2019,  $1 in 2020 and $3 thereafter.

 

 

OTHER LIABILITIES
OTHER LIABILITIES

NOTE 17    OTHER LIABILITIES

 

 

 

 

 

 

 

 

 

 

 

    At March 31,     

 

At December 31, 

 

 

    

2016

    

2015

    

Other current liabilities:

 

 

 

 

 

 

 

Accrued operating costs

 

$

106

 

$

105

 

Accrued capital expenditures

 

 

95

 

 

121

 

Reclamation and remediation liabilities

 

 

70

 

 

71

 

Accrued interest

 

 

67

 

 

71

 

Derivative instruments

 

 

49

 

 

63

 

Royalties

 

 

46

 

 

63

 

Holt property royalty

 

 

12

 

 

10

 

Taxes other than income and mining

 

 

8

 

 

9

 

Other

 

 

32

 

 

27

 

 

 

$

485

 

$

540

 

 

 

 

 

 

 

 

 

Other non-current liabilities:

 

 

 

 

 

 

 

Holt property royalty

 

$

152

 

$

119

 

Income and mining taxes 

 

 

79

 

 

78

 

Power supply agreements

 

 

32

 

 

31

 

Social development obligations

 

 

29

 

 

29

 

Derivative instruments

 

 

17

 

 

29

 

Boddington contingent consideration

 

 

10

 

 

10

 

Other 

 

 

14

 

 

14

 

 

 

$

333

 

$

310

 

 

CHANGES IN EQUITY
CHANGES IN EQUITY

NOTE 18    CHANGES IN EQUITY 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended March 31, 

 

 

  

2016

 

2015

 

Common stock:

 

 

 

 

 

 

 

At beginning of period

     

$

847

    

$

798

 

Stock-based awards

 

 

2

 

 

2

 

At end of period 

 

 

849

 

 

800

 

Additional paid-in capital:

 

 

 

 

 

 

 

At beginning of period 

 

 

9,427

 

 

8,712

 

Stock-based awards

 

 

10

 

 

17

 

Sale of noncontrolling interests

 

 

 —

 

 

12

 

At end of period 

 

 

9,437

 

 

8,741

 

Accumulated other comprehensive income (loss):

 

 

 

 

 

 

 

At beginning of period 

 

 

(334)

 

 

(478)

 

Other comprehensive income (loss)

 

 

(52)

 

 

(14)

 

At end of period 

 

 

(386)

 

 

(492)

 

Retained earnings:

 

 

 

 

 

 

 

At beginning of period 

 

 

1,410

 

 

1,242

 

Net income (loss) attributable to Newmont stockholders 

 

 

52

 

 

183

 

Dividends paid

 

 

(13)

 

 

(12)

 

At end of period 

 

 

1,449

 

 

1,413

 

Noncontrolling interests:

 

 

 

 

 

 

 

At beginning of period 

 

 

2,942

 

 

2,815

 

Net income (loss) attributable to noncontrolling interests 

 

 

83

 

 

46

 

Dividends paid to noncontrolling interests

 

 

(146)

 

 

(3)

 

Funding from noncontrolling interests, net

 

 

26

 

 

24

 

Sale of noncontrolling interests, net

 

 

 —

 

 

22

 

Other

 

 

(1)

 

 

(3)

 

At end of period 

 

 

2,904

 

 

2,901

 

Total equity 

 

$

14,253

 

$

13,363

 

 

RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)
RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

NOTE 19    RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pension and

 

Changes in

 

 

 

 

 

Unrealized 

 

Foreign

 

other

 

fair value of

 

 

 

 

 

(loss) on

 

currency

 

post‑retirement

 

cash flow

 

 

 

 

 

marketable

 

translation

 

benefit

 

hedge

 

 

 

 

 

securities, net

 

adjustments

 

adjustments

 

instruments

 

Total

 

Balance at December 31, 2015

  

$

(43)

  

$

116

  

$

(207)

  

$

(200)

  

$

(334)

 

Change in other comprehensive income (loss) before reclassifications

 

 

26

 

 

3

 

 

 —

 

 

5

 

 

34

 

Reclassifications from accumulated other comprehensive income (loss)

 

 

(103)

 

 

 —

 

 

3

 

 

14

 

 

(86)

 

Net current-period change

 

 

(77)

 

 

3

 

 

3

 

 

19

 

 

(52)

 

Balance at March 31, 2016

 

$

(120)

 

$

119

 

$

(204)

 

$

(181)

 

$

(386)

 

 

 

 

 

 

 

 

 

 

 

 

 

Details about Accumulated Other Comprehensive Income (Loss) Components

 

Amount Reclassified from Accumulated Other Comprehensive Income (Loss)

 

Affected Line Item in the Condensed Consolidated Statements of Income

 

 

 

Three Months Ended March 31, 

 

 

 

 

    

2016

    

2015

     

 

 

Marketable securities adjustments:

 

 

 

 

 

 

 

 

 

Sale of marketable securities

 

$

(103)

 

$

(1)

 

Other income, net

 

Impairment of marketable securities

 

 

 —

 

 

57

 

Other income, net

 

Total before tax

 

 

(103)

 

 

56

 

 

 

Tax benefit (expense)

 

 

 —

 

 

 —

 

 

 

Net of tax

 

$

(103)

 

$

56

 

 

 

Pension and other post-retirement benefit adjustments:

 

 

 

 

 

 

 

 

 

Amortization

 

$

5

 

$

7

 

(1)

 

Tax benefit (expense)

 

 

(2)

 

 

(2)

 

 

 

Net of tax

 

$

3

 

$

5

 

 

 

 

 

 

 

 

 

 

 

 

 

Hedge instruments adjustments:

 

 

 

 

 

 

 

 

 

Operating cash flow hedges (effective portion)

 

$

19

 

$

14

 

Costs applicable to sales

 

Operating cash flow hedges (ineffective portion)

 

 

 —

 

 

(1)

 

Other income, net

 

Interest rate contracts

 

 

3

 

 

5

 

Interest expense, net

 

Total before tax

 

 

22

 

 

18

 

 

 

Tax benefit (expense)

 

 

(8)

 

 

(6)

 

 

 

Net of tax

 

$

14

 

$

12

 

 

 

Total reclassifications for the period, net of tax

 

$

(86)

 

$

73

 

 

 

 


(1)

Included in General and administrative or included as a component of Costs applicable to sales which are incurred in the inventory/production process. Refer to Note 2 to the Consolidated Financial Statements for the year ended December 31, 2015 filed February 17, 2016 on Form 10-K for information on costs that benefit the inventory/production process.

 

NET CHANGE IN OPERATING ASSETS AND LIABILITIES
NET CHANGE IN OPERATING ASSETS AND LIABILITIES

NOTE 20    NET CHANGE IN OPERATING ASSETS AND LIABILITIES 

 

Net cash provided by operating activities attributable to the net change in operating assets and liabilities is composed of the following:

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended March 31, 

 

 

 

2016

 

2015

 

Decrease (increase) in operating assets:

 

 

 

 

 

 

 

Trade and other accounts receivables 

    

$

(31)

    

$

38

 

Inventories, stockpiles and ore on leach pads 

 

 

(37)

 

 

(60)

 

EGR refinery and other assets (1)

 

 

 —

 

 

(657)

 

Other assets 

 

 

(5)

 

 

85

 

Increase (decrease) in operating liabilities:

 

 

 

 

 

 

 

Accounts payable and other accrued liabilities 

 

 

(61)

 

 

(112)

 

EGR refinery and other liabilities (1)

 

 

 —

 

 

657

 

Reclamation liabilities 

 

 

(6)

 

 

(24)

 

 

 

$

(140)

 

$

(73)

 

 


(1)

On July 24, 2015, the Company sold its ownership interest in European Gold Refinery Holdings (“EGR”).

CONDENSED CONSOLIDATING FINANCIAL STATEMENTS
CONDENSED CONSOLIDATING FINANCIAL STATEMENTS

NOTE 21    CONDENSED CONSOLIDATING FINANCIAL STATEMENTS 

 

The following Condensed Consolidating Financial Statements are presented to satisfy disclosure requirements of Rule 3-10(e) of Regulation S-X resulting from the inclusion of Newmont USA Limited (“Newmont USA”), a wholly-owned subsidiary of Newmont, as a co-registrant with Newmont on debt securities issued under a shelf registration statement on Form S-3 filed under the Securities Act of 1933 under which securities of Newmont (including debt securities guaranteed by Newmont USA) may be issued (the “Shelf Registration Statement”). In accordance with Rule 3-10(e) of Regulation S-X, Newmont USA, as the subsidiary guarantor, is 100% owned by Newmont, the guarantees are full and unconditional, and no other subsidiary of Newmont guaranteed any security issued under the Shelf Registration Statement. There are no restrictions on the ability of Newmont or Newmont USA to obtain funds from its subsidiaries by dividend or loan.

 

During the first quarter of 2016, the Company conducted certain restructurings for tax planning purposes which modified the entities owned by the guarantor and impacted their respective Condensed Consolidating Financial statements.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended March 31, 2016

 

 

 

(Issuer)

 

(Guarantor)

 

(Non-Guarantor)

 

 

 

Newmont

 

 

 

Newmont

 

 

 

 

 

 

 

 

 

 

Mining

 

 

 

Mining

 

Newmont

 

Other

 

 

 

Corporation

 

Condensed Consolidating Statement of Operation

    

Corporation

    

USA

    

Subsidiaries

    

Eliminations

    

Consolidated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales

 

$

 —

 

$

471

 

$

1,561

 

$

 —

 

$

2,032

 

Costs and expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Costs applicable to sales (1)

 

 

 —

 

 

306

 

 

775

 

 

 —

 

 

1,081

 

Depreciation and amortization 

 

 

 —

 

 

84

 

 

238

 

 

 —

 

 

322

 

Reclamation and remediation

 

 

 —

 

 

3

 

 

22

 

 

 —

 

 

25

 

Exploration 

 

 

 —

 

 

6

 

 

24

 

 

 —

 

 

30

 

Advanced projects, research and development 

 

 

 —

 

 

2

 

 

26

 

 

 —

 

 

28

 

General and administrative 

 

 

 —

 

 

17

 

 

40

 

 

 —

 

 

57

 

Other expense, net

 

 

 —

 

 

4

 

 

14

 

 

 —

 

 

18

 

 

 

 

 —

 

 

422

 

 

1,139

 

 

 —

 

 

1,561

 

Other income (expense) 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other income, net 

 

 

9

 

 

 —

 

 

89

 

 

 —

 

 

98

 

Interest income - intercompany 

 

 

30

 

 

 —

 

 

9

 

 

(39)

 

 

 —

 

Interest expense - intercompany 

 

 

(8)

 

 

 —

 

 

(31)

 

 

39

 

 

 —

 

Interest expense, net 

 

 

(71)

 

 

(2)

 

 

(6)

 

 

 —

 

 

(79)

 

 

 

 

(40)

 

 

(2)

 

 

61

 

 

 —

 

 

19

 

Income (loss) before income and mining tax and other items 

 

 

(40)

 

 

47

 

 

483

 

 

 —

 

 

490

 

Income and mining tax benefit (expense)

 

 

75

 

 

(11)

 

 

(388)

 

 

 —

 

 

(324)

 

Equity income (loss) of affiliates 

 

 

17

 

 

(274)

 

 

2

 

 

250

 

 

(5)

 

Income (loss) from continuing operations 

 

 

52

 

 

(238)

 

 

97

 

 

250

 

 

161

 

Income (loss) from discontinued operations 

 

 

 —

 

 

 —

 

 

(26)

 

 

 —

 

 

(26)

 

Net income (loss)

 

 

52

 

 

(238)

 

 

71

 

 

250

 

 

135

 

Net loss (income) attributable to noncontrolling interests 

 

 

 —

 

 

 —

 

 

(83)

 

 

 —

 

 

(83)

 

Net income (loss) attributable to Newmont stockholders

 

$

52

 

$

(238)

 

$

(12)

 

$

250

 

$

52

 

Comprehensive income (loss)

 

$

 —

 

$

(232)

 

$

10

 

$

305

 

$

83

 

Comprehensive loss (income) attributable to noncontrolling interests

 

 

 —

 

 

 —

 

 

(83)

 

 

 —

 

 

(83)

 

Comprehensive income (loss) attributable to Newmont stockholders

 

$

 —

 

$

(232)

 

$

(73)

 

$

305

 

$

 —

 

 


(1)

Excludes Depreciation and amortization and Reclamation and remediation.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended March 31, 2015

 

 

 

(Issuer)

 

(Guarantor)

 

(Non-Guarantor)

 

 

 

Newmont

 

 

 

Newmont

 

 

 

 

 

 

 

Mining

 

 

 

Mining

 

Newmont

 

Other

 

 

 

Corporation

 

Condensed Consolidating Statement of Operation

    

Corporation

    

USA

    

Subsidiaries

    

Eliminations

    

Consolidated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales

 

$

 —

 

$

502

 

$

1,470

 

$

 —

 

$

1,972

 

Costs and expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Costs applicable to sales (1)

 

 

 —

 

 

289

 

 

738

 

 

 —

 

 

1,027

 

Depreciation and amortization 

 

 

1

 

 

77

 

 

211

 

 

 —

 

 

289

 

Reclamation and remediation

 

 

 —

 

 

3

 

 

20

 

 

 —

 

 

23

 

Exploration 

 

 

 —

 

 

6

 

 

27

 

 

 —

 

 

33

 

Advanced projects, research and development 

 

 

 —

 

 

3

 

 

25

 

 

 —

 

 

28

 

General and administrative 

 

 

 —

 

 

14

 

 

44

 

 

 —

 

 

58

 

Other expense, net

 

 

 —

 

 

3

 

 

14

 

 

 —

 

 

17

 

 

 

 

1

 

 

395

 

 

1,079

 

 

 —

 

 

1,475

 

Other income (expense) 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other income, net 

 

 

(28)

 

 

9

 

 

30

 

 

 —

 

 

11

 

Interest income - intercompany 

 

 

33

 

 

 —

 

 

5

 

 

(38)

 

 

 —

 

Interest expense - intercompany 

 

 

(3)

 

 

 —

 

 

(35)

 

 

38

 

 

 —

 

Interest expense, net 

 

 

(77)

 

 

(1)

 

 

(7)

 

 

 —

 

 

(85)

 

 

 

 

(75)

 

 

8

 

 

(7)

 

 

 —

 

 

(74)

 

Income (loss) before income and mining tax and other items 

 

 

(76)

 

 

115

 

 

384

 

 

 —

 

 

423

 

Income and mining tax benefit (expense)

 

 

25

 

 

(29)

 

 

(189)

 

 

 —

 

 

(193)

 

Equity income (loss) of affiliates 

 

 

234

 

 

(11)

 

 

23

 

 

(255)

 

 

(9)

 

Income (loss) from continuing operations 

 

 

183

 

 

75

 

 

218

 

 

(255)

 

 

221

 

Income (loss) from discontinued operations 

 

 

 —

 

 

 —

 

 

8

 

 

 —

 

 

8

 

Net income (loss)

 

 

183

 

 

75

 

 

226

 

 

(255)

 

 

229

 

Net loss (income) attributable to noncontrolling interests 

 

 

 —

 

 

 —

 

 

(77)

 

 

31

 

 

(46)

 

Net income (loss) attributable to Newmont stockholders

 

$

183

 

$

75

 

$

149

 

$

(224)

 

$

183

 

Comprehensive income (loss)

 

$

170

 

$

82

 

$

200

 

$

(237)

 

$

215

 

Comprehensive loss (income) attributable to noncontrolling interests

 

 

 —

 

 

 —

 

 

(71)

 

 

25

 

 

(46)

 

Comprehensive income (loss) attributable to Newmont stockholders

 

$

170

 

$

82

 

$

129

 

$

(212)

 

$

169

 

 


(1)

Excludes Depreciation and amortization and Reclamation and remediation.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended March 31, 2016

 

 

 

(Issuer)

 

(Guarantor)

 

(Non-Guarantor)

 

 

 

 

Newmont

 

 

 

Newmont

 

 

 

 

 

 

 

 

 

 

Mining

 

 

 

Mining

 

Newmont

 

Other

 

 

 

 

Corporation

 

Condensed Consolidating Statement of Cash Flows

    

Corporation

    

USA

    

Subsidiaries

    

Eliminations

    

Consolidated

 

Operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net cash provided by operating activities

 

$

757

 

$

40

 

$

555

 

$

(830)

 

$

522

 

Investing activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Additions to property, plant and mine development 

 

 

 —

 

 

(66)

 

 

(231)

 

 

 —

 

 

(297)

 

Sales of investments

 

 

 —

 

 

 —

 

 

184

 

 

 —

 

 

184

 

Proceeds from sale of other assets

 

 

 —

 

 

 —

 

 

6

 

 

 —

 

 

6

 

Other 

 

 

 —

 

 

 —

 

 

(4)

 

 

 —

 

 

(4)

 

Net cash used in investing activities 

 

 

 —

 

 

(66)

 

 

(45)

 

 

 —

 

 

(111)

 

Financing activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Repayment of debt

 

 

(498)

 

 

(1)

 

 

 —

 

 

 —

 

 

(499)

 

Net intercompany borrowings (repayments)

 

 

(246)

 

 

(320)

 

 

566

 

 

 —

 

 

 —

 

Funding from noncontrolling interests

 

 

 —

 

 

 —

 

 

12

 

 

 —

 

 

12

 

Dividends paid to noncontrolling interests

 

 

 —

 

 

 —

 

 

(146)

 

 

 —

 

 

(146)

 

Dividends paid to common stockholders 

 

 

(13)

 

 

(830)

 

 

 —

 

 

830

 

 

(13)

 

(Increase) decrease in restricted cash

 

 

 —

 

 

 —

 

 

(91)

 

 

 —

 

 

(91)

 

Other 

 

 

 —

 

 

 —

 

 

(1)

 

 

 —

 

 

(1)

 

Net cash used in financing activities 

 

 

(757)

 

 

(1,151)

 

 

340

 

 

830

 

 

(738)

 

Effect of exchange rate changes on cash 

 

 

 —

 

 

 —

 

 

6

 

 

 —

 

 

6

 

Net change in cash and cash equivalents 

 

 

 —

 

 

(1,177)

 

 

856

 

 

 —

 

 

(321)

 

Cash and cash equivalents at beginning of period 

 

 

 —

 

 

1,181

 

 

1,601

 

 

 —

 

 

2,782

 

Cash and cash equivalents at end of period 

 

$

 —

 

$

4

 

$

2,457

 

$

 —

 

$

2,461

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended March 31, 2015

 

 

 

(Issuer)

 

(Guarantor)

 

(Non-Guarantor)

 

 

 

 

Newmont

 

 

 

Newmont

 

 

 

 

 

 

 

 

 

 

Mining

 

 

 

Mining

 

Newmont

 

Other

 

 

 

 

Corporation

 

Condensed Consolidating Statement of Cash Flows

    

Corporation

    

USA

    

Subsidiaries

    

Eliminations

    

Consolidated

 

Operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net cash provided by operating activities

 

$

102

 

$

28

 

$

495

 

$

 —

 

$

625

 

Investing activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Additions to property, plant and mine development 

 

 

 —

 

 

(81)

 

 

(203)

 

 

 —

 

 

(284)

 

Sales of investments

 

 

 —

 

 

25

 

 

4

 

 

 —

 

 

29

 

Proceeds from sale of other assets

 

 

 —

 

 

6

 

 

38

 

 

 —

 

 

44

 

Other 

 

 

 —

 

 

 —

 

 

(3)

 

 

 —

 

 

(3)

 

Net cash used in investing activities 

 

 

 —

 

 

(50)

 

 

(164)

 

 

 —

 

 

(214)

 

Financing activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Repayment of debt

 

 

(200)

 

 

 —

 

 

(5)

 

 

 —

 

 

(205)

 

Net intercompany borrowings (repayments)

 

 

112

 

 

(20)

 

 

(92)

 

 

 —

 

 

 —

 

Sale of noncontrolling interests

 

 

 —

 

 

3

 

 

34

 

 

 —

 

 

37

 

Funding from noncontrolling interests

 

 

 —

 

 

 —

 

 

47

 

 

 —

 

 

47

 

Dividends paid to noncontrolling interests

 

 

 —

 

 

 —

 

 

(3)

 

 

 —

 

 

(3)

 

Dividends paid to common stockholders 

 

 

(12)

 

 

 —

 

 

 —

 

 

 —

 

 

(12)

 

(Increase) decrease in restricted cash

 

 

 —

 

 

1

 

 

(56)

 

 

 —

 

 

(55)

 

Other 

 

 

(2)

 

 

 —

 

 

(3)

 

 

 —

 

 

(5)

 

Net cash used in financing activities 

 

 

(102)

 

 

(16)

 

 

(78)

 

 

 —

 

 

(196)

 

Effect of exchange rate changes on cash 

 

 

 —

 

 

 —

 

 

(20)

 

 

 —

 

 

(20)

 

Net change in cash and cash equivalents 

 

 

 —

 

 

(38)

 

 

233

 

 

 —

 

 

195

 

Cash and cash equivalents at beginning of period 

 

 

 —

 

 

1,097

 

 

1,306

 

 

 —

 

 

2,403

 

Cash and cash equivalents at end of period 

 

$

 —

 

$

1,059

 

$

1,539

 

$

 —

 

$

2,598

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

At March 31, 2016

 

 

 

(Issuer)

 

(Guarantor)

 

(Non-Guarantor)

 

 

 

 

Newmont

 

 

 

Newmont

 

 

 

 

 

 

 

 

 

 

Mining

 

 

 

Mining

 

Newmont

 

Other

 

 

 

Corporation

 

Condensed Consolidating Balance Sheet

    

Corporation

    

USA

    

Subsidiaries

    

Eliminations

    

Consolidated

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents 

 

$

 —

 

$

4

 

$

2,457

 

$

 —

 

$

2,461

 

Trade receivables 

 

 

 —

 

 

36

 

 

237

 

 

 —

 

 

273

 

Other accounts receivables

 

 

 —

 

 

8

 

 

214

 

 

 —

 

 

222

 

Intercompany receivable

 

 

4,904

 

 

5,392

 

 

9,180

 

 

(19,476)

 

 

 —

 

Investments

 

 

 —

 

 

 —

 

 

27

 

 

 —

 

 

27

 

Inventories 

 

 

 —

 

 

150

 

 

560

 

 

 —

 

 

710

 

Stockpiles and ore on leach pads 

 

 

 —

 

 

218

 

 

646

 

 

 —

 

 

864

 

Other current assets

 

 

 —

 

 

40

 

 

183

 

 

 —

 

 

223

 

Current assets 

 

 

4,904

 

 

5,848

 

 

13,504

 

 

(19,476)

 

 

4,780

 

Property, plant and mine development, net 

 

 

25

 

 

3,184

 

 

11,111

 

 

(36)

 

 

14,284

 

Investments 

 

 

 —

 

 

15

 

 

225

 

 

 —

 

 

240

 

Investments in subsidiaries 

 

 

14,472

 

 

1,576

 

 

 —

 

 

(16,048)

 

 

 —

 

Stockpiles and ore on leach pads 

 

 

 —

 

 

619

 

 

2,402

 

 

 —

 

 

3,021

 

Deferred income tax assets 

 

 

297

 

 

524

 

 

1,202

 

 

(490)

 

 

1,533

 

Non-current intercompany receivable

 

 

1,734

 

 

498

 

 

110

 

 

(2,342)

 

 

 —

 

Other non-current assets 

 

 

 —

 

 

223

 

 

472

 

 

 —

 

 

695

 

Total assets 

 

$

21,432

 

$

12,487

 

$

29,026

 

$

(38,392)

 

$

24,553

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Debt 

 

$

 —

 

$

3

 

$

332

 

$

 —

 

$

335

 

Accounts payable 

 

 

 —

 

 

60

 

 

307

 

 

 —

 

 

367

 

Intercompany payable

 

 

4,582

 

 

4,694

 

 

10,200

 

 

(19,476)

 

 

 —

 

Employee-related benefits 

 

 

 —

 

 

71

 

 

125

 

 

 —

 

 

196

 

Income and mining taxes 

 

 

 —

 

 

 —

 

 

75

 

 

 —

 

 

75

 

Other current liabilities 

 

 

67

 

 

101

 

 

317

 

 

 —

 

 

485

 

Current liabilities 

 

 

4,649

 

 

4,929

 

 

11,356

 

 

(19,476)

 

 

1,458

 

Debt 

 

 

5,353

 

 

6

 

 

10

 

 

 —

 

 

5,369

 

Reclamation and remediation liabilities 

 

 

 —

 

 

235

 

 

1,586

 

 

 —

 

 

1,821

 

Deferred income tax liabilities 

 

 

 —

 

 

86

 

 

1,269

 

 

(490)

 

 

865

 

Employee-related benefits 

 

 

 —

 

 

287

 

 

167

 

 

 —

 

 

454

 

Non-current intercompany payable

 

 

81

 

 

 —

 

 

2,297

 

 

(2,378)

 

 

 —

 

Other non-current liabilities 

 

 

 —

 

 

35

 

 

298

 

 

 —

 

 

333

 

Total liabilities 

 

 

10,083

 

 

5,578

 

 

16,983

 

 

(22,344)

 

 

10,300

 

Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Newmont stockholders’ equity 

 

 

11,349

 

 

6,909

 

 

9,139

 

 

(16,048)

 

 

11,349

 

Noncontrolling interests 

 

 

 —

 

 

 —

 

 

2,904

 

 

 —

 

 

2,904

 

Total equity

 

 

11,349

 

 

6,909

 

 

12,043

 

 

(16,048)

 

 

14,253

 

Total liabilities and equity

 

$

21,432

 

$

12,487

 

$

29,026

 

$

(38,392)

 

$

24,553

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

At December 31, 2015

 

 

 

(Issuer)

 

(Guarantor)

 

(Non-Guarantor)

 

 

 

Newmont

 

 

 

Newmont

 

 

 

 

 

 

 

Mining

 

 

 

Mining

 

Newmont

 

Other

 

 

 

Corporation

 

Condensed Consolidating Balance Sheet

    

Corporation

    

USA

    

Subsidiaries

    

Eliminations

    

Consolidated

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents 

 

$

 —

 

$

1,181

 

$

1,601

 

$

 —

 

$

2,782

 

Trade receivables 

 

 

 —

 

 

31

 

 

229

 

 

 —

 

 

260

 

Other accounts receivables

 

 

 —

 

 

 —

 

 

185

 

 

 —

 

 

185

 

Intercompany receivable

 

 

4,587

 

 

6,212

 

 

8,101

 

 

(18,900)

 

 

 —

 

Investments

 

 

 —

 

 

 —

 

 

19

 

 

 —

 

 

19

 

Inventories 

 

 

 —

 

 

158

 

 

552

 

 

 —

 

 

710

 

Stockpiles and ore on leach pads 

 

 

 —

 

 

201

 

 

695

 

 

 —

 

 

896

 

Other current assets

 

 

 —

 

 

53

 

 

78

 

 

 —

 

 

131

 

Current assets 

 

 

4,587

 

 

7,836

 

 

11,460

 

 

(18,900)

 

 

4,983

 

Property, plant and mine development, net 

 

 

26

 

 

3,179

 

 

11,136

 

 

(38)

 

 

14,303

 

Investments 

 

 

 —

 

 

15

 

 

387

 

 

 —

 

 

402

 

Investments in subsidiaries 

 

 

15,650

 

 

3,886

 

 

2,820

 

 

(22,356)

 

 

 —

 

Stockpiles and ore on leach pads 

 

 

 —

 

 

621

 

 

2,379

 

 

 —

 

 

3,000

 

Deferred income tax assets 

 

 

223

 

 

757

 

 

1,228

 

 

(490)

 

 

1,718

 

Non-current intercompany receivable

 

 

1,742

 

 

434

 

 

108

 

 

(2,284)

 

 

 —

 

Other non-current assets 

 

 

 —

 

 

253

 

 

477

 

 

 —

 

 

730

 

Total assets 

 

$

22,228

 

$

16,981

 

$

29,995

 

$

(44,068)

 

$

25,136

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Debt 

 

$

 —

 

$

3

 

$

146

 

$

 —

 

$

149

 

Accounts payable 

 

 

 —

 

 

78

 

 

318

 

 

 —

 

 

396

 

Intercompany payable

 

 

4,888

 

 

5,495

 

 

8,517

 

 

(18,900)

 

 

 —

 

Employee-related benefits 

 

 

 —

 

 

136

 

 

157

 

 

 —

 

 

293

 

Income and mining taxes 

 

 

 —

 

 

 —

 

 

38

 

 

 —

 

 

38

 

Other current liabilities 

 

 

70

 

 

133

 

 

337

 

 

 —

 

 

540

 

Current liabilities 

 

 

4,958

 

 

5,845

 

 

9,513

 

 

(18,900)

 

 

1,416

 

Debt 

 

 

5,839

 

 

7

 

 

195

 

 

 —

 

 

6,041

 

Reclamation and remediation liabilities 

 

 

 —

 

 

231

 

 

1,569

 

 

 —

 

 

1,800

 

Deferred income tax liabilities 

 

 

 —

 

 

85

 

 

1,245

 

 

(490)

 

 

840

 

Employee-related benefits 

 

 

 —

 

 

283

 

 

154

 

 

 —

 

 

437

 

Non-current intercompany payable

 

 

81

 

 

 —

 

 

2,241

 

 

(2,322)

 

 

 —

 

Other non-current liabilities 

 

 

 —

 

 

37

 

 

273

 

 

 —

 

 

310

 

Total liabilities 

 

 

10,878

 

 

6,488

 

 

15,190

 

 

(21,712)

 

 

10,844

 

Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Newmont stockholders’ equity 

 

 

11,350

 

 

10,493

 

 

10,202

 

 

(20,695)

 

 

11,350

 

Noncontrolling interests 

 

 

 —

 

 

 —

 

 

4,603

 

 

(1,661)

 

 

2,942

 

Total equity

 

 

11,350

 

 

10,493

 

 

14,805

 

 

(22,356)

 

 

14,292

 

Total liabilities and equity

 

$

22,228

 

$

16,981

 

$

29,995

 

$

(44,068)

 

$

25,136

 

 

COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES

NOTE 22    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 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 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 Corporate and Other. The Yanacocha matters relate to the South America reportable segment. The PTNNT matters relate to the Asia Pacific reportable segment. The Fronteer matters relate to the North America reportable segment.

 

Environmental Matters

 

The Company’s mining and exploration activities are subject to various 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 so as to protect the public health and 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 costs are based principally on legal and regulatory requirements. At March 31, 2016 and December 31, 2015,  $1,575 and $1,553, respectively, were accrued for reclamation costs relating to currently or recently producing mineral properties in accordance with asset retirement obligation guidance. The current portions of $36 and $37 at March 31, 2016 and December 31, 2015, respectively, are included in Other current liabilities.  

 

In addition, the Company is involved in several matters concerning environmental obligations associated with former mining activities. Generally, these matters concern developing and implementing remediation plans at the various sites involved. The Company believes that the related environmental obligations associated with these sites are similar in nature with respect to the development of remediation plans, their risk profile and the compliance required to meet general environmental standards. Based upon the Company’s best estimate of its liability for these matters, $316 and $318 were accrued for such obligations at March 31, 2016 and December 31, 2015, respectively. These amounts are included in Other current liabilities and Reclamation and remediation liabilities. 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 43% greater or 1% lower than the amount accrued at March 31, 2016. The amounts accrued are reviewed periodically based upon facts and circumstances available at the time. Changes in estimates are recorded in Reclamation and remediation in the period estimates are revised.

 

Details about certain of the more significant matters are discussed below.

 

Newmont USA Limited - 100% Newmont Owned

 

Ross-Adams Mine Site. By letter dated June 5, 2007, the U.S. Forest Service notified Newmont that it had expended approximately $0.3 in response costs to address environmental conditions at the Ross-Adams mine in Prince of Wales, Alaska, and requested Newmont USA Limited pay those costs and perform an Engineering Evaluation/Cost Analysis (“EE/CA”) to assess what future response activities might need to be completed at the site. Newmont agreed to perform the EE/CA, which has been provided to the U.S. Forest Service (“USFS”). During the first quarter of 2016, the USFS confirmed approval of the EE/CA, and Newmont issued written notice to the USFS certifying that all requirements of the Administrative Settlement Agreement and Order on Consent (“ASAOC”) between the USFS and Newmont have been completed. The ASAOC will be final upon USFS concurrence with the notice of completion and Newmont payment of USFS response costs, which are anticipated to be received from the USFS in the second quarter of 2016. Any future liability associated with the Ross-Adams site would be subject to future negotiations with the USFS. In the first quarter of 2016, Newmont continued follow-up discussions with another potential responsible party to discuss possible allocation of future costs for implementing the remedy. No assurances can be made at this time with respect to the outcome of such negotiations and Newmont cannot predict the likelihood of additional expenditures related to this matter.

 

Dawn Mining Company LLC (“Dawn”) - 51% Newmont Owned

 

Midnite Mine Site and 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 United States Environmental Protection Agency (“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: 1) Newmont and Dawn would design, construct and implement the cleanup plan selected by the EPA in 2006 for the Midnite Mine site; 2) Newmont and Dawn would reimburse the EPA for its costs associated with overseeing the work; 3) 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; 4) Newmont and Dawn would be responsible for all other EPA oversight costs and Midnite Mine site cleanup costs and 5) 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 a lump sum payment of $42, which Newmont classified as restricted cash with interest on the consolidated balance sheets for all periods presented. Additionally in 2012, Newmont initiated the remedial design process and subsequently submitted interim process update reports at the 30% design, 60% design and 90% design level of completion, which were approved by the EPA in July 2012, April 2014 and April 2015, respectively. Upon approval by the EPA of the 90% design coupled with the resolution of uncertainties regarding site access and material use, the expected remediation design was reasonably certain and Newmont commissioned an independent cost estimate of the overall project costs based on the 90% design. The reclamation liability for the Midnite Mine site and Mill site is approximately $220 at March 31, 2016.

 

Other Legal Matters

 

Minera Yanacocha S.R.L. - 51.35% Newmont Owned

 

Choropampa. In June 2000, a transport contractor of Yanacocha spilled approximately 151 kilograms of elemental mercury near the town of Choropampa, Peru, which is located 53 miles (85 kilometers) southwest of the Yanacocha mine. Elemental mercury is not used in Yanacocha’s operations but is a by-product of gold mining and was sold to a Lima firm for use in medical instruments and industrial applications. A comprehensive health and environmental remediation program was undertaken by Yanacocha in response to the incident. In August 2000, Yanacocha paid under protest a fine of 1,740,000 Peruvian soles (approximately $0.5) to the Peruvian government. Yanacocha has entered into settlement agreements with a number of individuals impacted by the incident. As compensation for the disruption and inconvenience caused by the incident, Yanacocha entered into agreements with and provided a variety of public works in the three communities impacted by this incident. Yanacocha cannot predict the likelihood of additional expenditures related to this matter.

 

Additional lawsuits relating to the Choropampa incident were filed against Yanacocha in the local courts of Cajamarca, Peru, in May 2002 by over 900 Peruvian citizens. A significant number of the plaintiffs in these lawsuits entered into settlement agreements with Yanacocha prior to filing such claims. In April 2008, the Peruvian Supreme Court upheld the validity of these settlement agreements, which the Company expects to result in the dismissal of all claims brought by previously settled plaintiffs. Yanacocha has also entered into settlement agreements with approximately 350 additional plaintiffs. The claims asserted by approximately 200 plaintiffs remain. In 2011, Yanacocha was served with 23 complaints alleging grounds to nullify the settlements entered into between Yanacocha and the plaintiffs. Yanacocha has answered the complaints and the court has dismissed several of the matters and the plaintiffs have filed appeals. All appeals were referred to the Civil Court of Cajamarca, which affirmed the decisions of the lower court judge. The plaintiffs have filed appeals of such orders before the Supreme Court. Some of these appeals were dismissed by the Supreme Court in favor of Yanacocha, and others are pending resolution. Yanacocha will continue to vigorously defend its position. Neither the Company nor Yanacocha can reasonably estimate the ultimate loss relating to such claims.

 

Administrative Actions. The Peruvian government agency responsible for environmental evaluation and inspection, Organismo Evaluacion y Fiscalizacion Ambiental (“OEFA”), conducts periodic reviews of the Yanacocha site. In 2011, 2012, and 2013, and the first quarter of 2015, OEFA issued notices of alleged violations of OEFA standards to Yanacocha and Conga relating to past inspections. Total fines for all outstanding OEFA alleged violations remain dependent upon the number of units associated with the alleged violations. In the first quarter of 2015, the water authority of Cajamarca issued notices of alleged regulatory violations. The alleged OEFA violations currently range from zero to 80,112 units and the water authority alleged violations range from zero to 20,000 units, with each unit having a potential fine equivalent to approximately $.00116  ($0 to $116). Yanacocha and Conga are responding to all notices of alleged violations, but cannot reasonably predict the outcome of the agency allegations.

 

Conga Project Constitutional Claim. On October 18, 2012, Marco Antonio Arana Zegarra filed a constitutional claim against the Ministry of Energy and Mines and Yanacocha requesting the Court to order the suspension of Conga project as well as to declare not applicable the October 27, 2010, directorial resolution approving the Conga project Environmental Impact Assessment (“EIA”). On October 23, 2012, a Cajamarca judge dismissed the claims based on formal grounds finding that: 1) plaintiffs had not exhausted previous administrative proceedings; 2) the directorial resolution approving the Conga EIA is valid, and was not challenged when issued in the administrative proceedings; 3) there was inadequate evidence to conclude that the Conga project is a threat to the constitutional right of living in an adequate environment and 4) the directorial resolution approving the Conga project EIA does not guarantee that the Conga project will proceed, so there was no imminent threat to be addressed by the Court. The plaintiffs appealed the dismissal of the case. The Civil Court of the Superior Court of Cajamarca confirmed the above mentioned resolution and the plaintiff presented an appeal. On March 13, 2015, the Constitutional Court published its ruling stating that the case should be sent back to the first court with an order to formally admit the case and start the judicial process in order to review the claim and the proofs presented by the plaintiff. Yanacocha has answered the claim. Neither the Company nor Yanacocha can reasonably predict the outcome of this litigation.

 

Yanacocha Tax Dispute. In 2000, Yanacocha paid Buenaventura and Minas Conga S.R.L. a total of $29 to assume their respective contractual positions in mining concession agreements with Chaupiloma Dos de Cajamarca S.M.R.L. The contractual rights allowed Yanacocha the opportunity to conduct exploration on the concessions, but not a purchase of the concessions. The tax authority alleges that the payments to Buenaventura and Minas Conga S.R.L. were acquisitions of mining concessions requiring the amortization of the amounts under the Peru Mining Law over the life of the mine. Yanacocha expensed the amounts at issue in the initial year since the payments were not for the acquisition of a concession but rather these expenses represent the payment of an intangible and therefore, amortizable in a single year or proportionally for up to ten years according to Income Tax Law. In 2010, the tax court in Peru ruled in favor of Yanacocha and the tax authority appealed the issue to the judiciary. The first appellate court confirmed the ruling of the tax court in favor of Yanacocha. However, in November, 2015, a Superior Court in Peru made an appellate decision overturning the two prior findings in favor of Yanacocha. Yanacocha has appealed the Superior Court ruling to the Peru Supreme Court. The potential liability in this matter is in the form of fines and interest in an amount up to $70. While the Company has assessed that the likelihood of a ruling against Yanacocha in the Supreme Court as remote, it is not possible to fully predict the outcome of this litigation.

 

PT Newmont Nusa Tenggara – 31.5% Newmont Owned

 

Under the Batu Hijau Contract of Work, beginning in 2006 and continuing through 2010, a portion of PTNNT’s shares were required to be offered for sale, first, to the Indonesian government or, second, to Indonesian nationals, equal to the difference between the following percentages and the percentage of shares already owned by the Indonesian government or Indonesian nationals (if such number is positive): 23% by March 31, 2006; 30% by March 31, 2007; 37% by March 31, 2008; 44% by March 31, 2009; and 51% by March 31, 2010. As PT Pukuafu Indah, an Indonesian national, owned a 20% interest in PTNNT at all relevant times, in 2006, a 3% interest was required to be offered for sale and, in each of 2007 through 2010, an additional 7% interest was required to be offered (for an aggregate 31% interest). The price at which such interests were offered for sale to the Indonesian parties was the fair market value of such interest considering PTNNT as a going concern, as agreed with the Indonesian government. Following certain disputes and an arbitration with the Indonesian government, in November and December 2009, sale agreements were concluded pursuant to which the 2006, 2007 and 2008 shares were sold to PT Multi Daerah Bersaing (“PTMDB”), the nominee of the local governments, and the 2009 shares were sold to PTMDB in February 2010, resulting in PTMDB owning a 24% interest in PTNNT.

 

On December 17, 2010, the Ministry of Energy & Mineral Resources, acting on behalf of the Indonesian government, accepted the offer to acquire the final 7% interest in PTNNT. Subsequently, the Indonesian government designated Pusat Investasi Pemerintah (“PIP”), an agency of the Ministry of Finance, as the entity that will buy the final stake. On May 6, 2011, PIP and the foreign shareholders entered into a definitive agreement for the sale and purchase of the final 7% divestiture stake, subject to receipt of approvals from certain Indonesian government ministries. Subsequent to signing the agreement, a disagreement arose between the Ministry of Finance and the Indonesian parliament in regard to whether parliamentary approval was needed to allow PIP to make the share purchase. In July 2012, the Constitutional Court ruled that parliament approval is required for PIP to use state funds to purchase the shares, which approval was never obtained. PIP and the foreign shareholders have not further extended the period in the definitive agreement for satisfaction of the conditions. Further disputes may arise in regard to the divestiture of the 2010 shares.

 

NWG Investments Inc. v. Fronteer Gold Inc.

 

In April 2011, Newmont acquired Fronteer Gold Inc. (“Fronteer”).

 

Fronteer acquired NewWest Gold Corporation (“NewWest Gold”) in September 2007. At the time of that acquisition, NWG Investments Inc. (“NWG”) owned approximately 86% of NewWest Gold and an individual named Jacob Safra owned or controlled 100% of NWG. Prior to its acquisition of NewWest Gold, Fronteer entered into a June 2007 lock-up agreement with NWG providing that, among other things, NWG would support Fronteer’s acquisition of NewWest Gold. At that time, Fronteer owned approximately 47% of Aurora Energy Resources Inc. (“Aurora”), which, among other things, had a uranium exploration project in Labrador, Canada.

 

NWG contends that, during the negotiations leading up to the lock-up agreement, Fronteer represented to NWG, among other things, that Aurora would commence uranium mining in Labrador by 2013, that this was a firm date, that Aurora faced no current environmental issues in Labrador and that Aurora’s competitors faced delays in commencing uranium mining. NWG further contends that it entered into the lock-up agreement and agreed to support Fronteer’s acquisition of NewWest Gold in reliance upon these purported representations. On October 11, 2007, less than three weeks after the Fronteer-NewWest Gold transaction closed, a member of the Nunatsiavut Assembly introduced a motion calling for the adoption of a moratorium on uranium mining in Labrador. On April 8, 2008, the Nunatsiavut Assembly adopted a three-year moratorium on uranium mining in Labrador. NWG contends that Fronteer was aware during the negotiations of the NWG/Fronteer lock-up agreement that the Nunatsiavut Assembly planned on adopting this moratorium and that its adoption would preclude Aurora from commencing uranium mining by 2013, but Fronteer nonetheless fraudulently induced NWG to enter into the lock-up agreement.

 

On September 24, 2012, NWG served a summons and complaint on the Company, and then amended the complaint to add Newmont Canada Holdings ULC as a defendant. The complaint also named Fronteer Gold Inc. and Mark O’Dea as defendants. The complaint sought rescission of the merger between Fronteer and NewWest Gold and $750 in damages. In August 2013 the Supreme Court of New York, New York County issued an order granting the defendants’ motion to dismiss on forum non conveniens. Subsequently, NWG filed a notice of appeal of the decision and then a notice of dismissal of the appeal on March 24, 2014.

 

On February 26, 2014, NWG filed a lawsuit in Ontario Superior Court of Justice against Fronteer Gold Inc., Newmont Mining Corporation, Newmont Canada Holdings ULC, Newmont FH B.V. and Mark O’Dea. The Ontario complaint is based upon substantially the same allegations contained in the New York lawsuit with claims for fraudulent and negligent misrepresentation. NWG seeks disgorgement of profits since the close of the NWG deal on September 24, 2007 and damages in the amount of CAD $1.2 billion. Newmont, along with other defendants, served the plaintiff with its statement of defense on October 17, 2014. Newmont intends to vigorously defend this matter, but cannot reasonably predict the outcome.

 

Investigations

 

We occasionally identify or are apprised of information or allegations that certain employees, affiliates, agents or associated persons may have engaged in unlawful conduct for which we might be held responsible. We are conducting an investigation, with the assistance of outside counsel, relating to certain business activities of the Company and its affiliates and contractors in countries outside the United States. The investigation includes a review of compliance with the requirements of the U.S. Foreign Corrupt Practices Act and other applicable laws and regulations. The Company is working with the U.S. Securities and Exchange Commission and the U.S. Department of Justice with respect to the investigation. In March 2016, the Company entered into a one-year agreement with the U.S. Securities and Exchange Commission tolling the statute of limitations relating to the investigation, and recently entered into a similar agreement with the U.S. Department of Justice. As of the filing of these financial statements, we cannot predict the outcome of these matters. Accordingly, no provision with respect to these matters has been made in our consolidated financial statements. See also Item 1A of the Company’s most recent Form 10-K, filed with the SEC on February 17, 2016 under the heading “Our business is subject to the U.S. Foreign Corrupt Practices Act and other extraterritorial and domestic anti-bribery laws, a breach or violation of which could lead to civil and criminal fines and penalties, loss of licenses or permits and other collateral consequences and reputational harm.”

 

Other Commitments and Contingencies

 

The Company has minimum royalty obligations on one of its producing mines in Nevada for the life of the mine. Amounts paid as a minimum royalty (where production royalties are less than the minimum obligation) in any year are recoverable in future years when the minimum royalty obligation is exceeded. Although the minimum royalty requirement may not be met in a particular year, the Company expects that over the mine life, gold production will be sufficient to meet the minimum royalty requirements. Average annual minimum royalty payments payable, net of recoverable amounts, are $28 in 2016,  $32 in 2017 through 2020 and $19 thereafter.

 

On June 25, 2009, the Company completed the acquisition of the remaining 33.33% interest in Boddington from AngloGold Ashanti Australia Limited (“AngloGold”). Consideration for the acquisition consisted of $982 and a contingent royalty capped at $100, equal to 50% of the average realized operating margin (Revenue less Costs applicable to sales on a by-product basis), if any, exceeding $600 per ounce, payable quarterly beginning in the second quarter of 2010 on one-third of gold sales from Boddington. At the acquisition date, the Company estimated the fair value of the contingent consideration at $62. At March 31, 2016 and December 31, 2015, the estimated fair value of the unpaid contingent consideration was approximately $10. Changes to the estimated fair value resulting from periodic revaluations are recorded to Other expense, net. This contingent royalty is capped at $100 in aggregate payments. The Company has made no payments during 2016 and 2015. The range of remaining undiscounted amounts the Company could pay is between $0 and $28.

 

Discontinued operations include a retained royalty obligation (“Holt”) to Holloway Mining Company. Holloway Mining Company, which owned the Holt-McDermott property, was sold to St. Andrew Goldfields Ltd. (“St. Andrew”) in 2006. In January 2016, St. Andrew was acquired by Kirkland Lake Gold Inc. In 2009, the Superior Court issued a decision finding Newmont Canada Corporation (“Newmont Canada”) liable for a sliding scale royalty on production from the Holt property, which Newmont Canada appealed. In May 2011, the Ontario Court of Appeal upheld the Superior Court ruling finding Newmont liable for the sliding scale royalty, which equals 0.013% of net smelter returns multiplied by the quarterly average gold price, minus a 0.013% of net smelter returns. There is no cap on the sliding scale royalty and it will increase or decrease with changes in gold price, discount rate, and gold production scenarios. At March 31, 2016 and December 31, 2015, the estimated fair value of the Holt sliding scale royalty was $164 and $129, respectively. Changes to the estimated fair value resulting from periodic revaluations are recorded to Income (loss) from discontinued operations. During the first quarter of 2016 and 2015, the Company recorded a loss of $26 (net of a tax benefit of $11) and a gain of $8 (net of a tax expense of $4), respectively. During the first quarter of 2016 and 2015, the Company paid $2 and $3, respectively, related to the royalty.

 

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 reclamation, exploration permitting, workers compensation programs and other general corporate purposes. At March 31, 2016 and December 31, 2015, there were $2,153 and $2,060, respectively, of outstanding letters of credit, surety bonds and bank guarantees. The surety bonds, letters of credit and bank guarantees reflect fair value as a condition of their underlying purpose and are subject to fees competitively determined in the market place. 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.

 

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

Risks and Uncertainties

 

As a global mining company, the Company’s revenue, profitability and future rate of growth are substantially dependent on prevailing prices for gold, copper and, to a lesser extent, silver. 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 and Deferred income tax assets are sensitive to the outlook for commodity prices. A decline in the Company’s long term price outlook from current levels could result in material impairment charges related to these assets.

 

In September 2014, PT Newmont Nusa Tenggara (“PTNNT”) and the Government of Indonesia signed a Memorandum of Understanding (“MoU”) that resulted in the government agreeing to issue permits to allow PTNNT to export and sell copper concentrates from the Batu Hijau mine (“Batu Hijau”). The government then issued several six month export permits commencing in September 2014, March 2015 and November 2015. The most recent November permit was issued following a two month delay and expires in May 2016. Effective with the signing of the MoU, PTNNT agreed to pay certain export duties and royalties. The MoU also outlines terms for the six main elements of the Contract of Work (the investment agreement entered into by PTNNT and the Indonesian government in 1986, which includes the right to export copper concentrates and a prohibition against new taxes, duties, and levies) renegotiation, which will be incorporated into an amendment of the Contract of Work. The six areas are: 1) concession area size; 2) royalties, taxes and export duties; 3) domestic processing and refining; 4) ownership divestment; 5) utilization of local manpower, domestic goods and services; and 6) duration of the Contract of Work. Negotiations between PTNNT and the Government of Indonesia to amend the Contract of Work remain on-going. No assurances can be made at this time with respect to the outcome of such negotiations and the renewal of the export permit. The failure to receive a timely renewal may negatively impact future operations and financial results at Batu Hijau. As a result of the on-going Contract of Work renegotiations at Batu Hijau, the need for asset impairments, inventory write-downs, tax valuation allowances and other applicable accounting charges will continue to be evaluated. At this time, the Company expects operations to continue into the future. The total assets at Batu Hijau as of March 31, 2016 and December 31, 2015 were $3,726 and $3,483, respectively.

 

During the last several years, Minera Yanacocha S.R.L. (“Yanacocha”), in which the Company owns a 51.35% interest, and whose properties include the mining operations at Yanacocha and the Conga Project in Peru, has been the target of local political and community protests, some of which blocked the road between the Yanacocha mine and Conga Project complexes and the City of Cajamarca in Peru and resulted in vandalism and equipment damage. The Company cannot predict whether similar or more significant incidents will occur in the future. The recurrence of significant political or community opposition or protests could continue to adversely affect Conga’s development and the continued operation of Yanacocha. Construction activities on the Conga Project were suspended on November 30, 2011 at the request of Peru’s central government following increasing protests in Cajamarca by anti-mining activists led by the regional president. In the first half of 2014, a Conga Restart Study was completed to identify and test alternatives to advancing development of the project. Following this assessment, a new plan was developed to reduce spending to focus on only the most critical work – protecting people and assets, engaging with communities, and maintaining existing project infrastructure – while maintaining optionality. Newmont will not proceed with the full development of Conga without social acceptance, solid project economics and potentially another partner to help defray costs and risk; it is currently difficult to predict when or whether such events may occur. Under the current social and political environment, the Company does not anticipate being able to develop Conga for the foreseeable future. Should the Company be unable to develop Conga, the Company may in the future reprioritize and reallocate capital to development alternatives which may result in an impairment of the Conga Project. The total assets at Conga as of March 31, 2016 and December 31, 2015 were $1,674 and $1,678, respectively.

 

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the accounting for and recognition and disclosure of assets, liabilities, equity, revenues and expenses. 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.

 

Recently Adopted Accounting Pronouncements

 

Employee benefit plan accounting

 

In July 2015, the Financial Accounting Standards Board issued ASU No. 2015-12 related to defined benefit pension plans, defined contribution pension plans, and health and welfare benefit plans. This update designates contract value as the only required measure for fully benefit-responsive investment contracts, simplifies and makes more effective the investment disclosure requirements for employee benefit plans, and provides a simplified method for determining the measurement date for employee benefit plans. The update is effective in fiscal years, including interim periods, beginning after December 15, 2015. Adoption of this guidance effective January 1, 2016 had no impact on the Consolidated Financial Statements or disclosures.

 

Fair value measurement

 

In May 2015, ASU No. 2015-07 was issued related to investments for which fair value is measured, or are eligible to be measured, using the net asset value per share practical expedient. This update removes the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the net asset value per share practical expedient. The amendment also removes certain disclosure requirements for these investments. This update will impact the annual disclosure related to pension plan assets measured at fair value. This update is effective in fiscal years, including interim periods, beginning after December 15, 2015. Adoption of this guidance effective January 1, 2016 had no impact on the Consolidated Financial Statements.

 

Debt issuance costs

 

In April 2015, ASU No. 2015-03 was issued related to debt issuance costs. This update simplifies the presentation of debt issuance costs by requiring debt issuance costs to be presented as a deduction from the corresponding debt liability. The update is effective in fiscal years, including interim periods, beginning after December 15, 2015. The Company retrospectively adopted this guidance as of March 31, 2016. The Company reclassified $46 of debt issuance costs from Other non-current assets to Debt as of December 31, 2015. The December 31, 2015, balance sheet was adjusted as a result of the adoption of ASU 2015-03 as follows:

 

 

 

 

 

 

 

 

 

 

 

At December 31, 2015

 

 

    

As Reported

    

As Adjusted

    

Other non-current assets

 

$

776

 

$

730

 

Debt (non-current)

 

$

6,087

 

$

6,041

 

 

ASU No. 2015-03 does not specifically address the accounting for deferred financing costs related to line-of-credit arrangements. In August 2015, ASU No. 2015-15 was issued allowing for debt issuance costs associated with line-of-credit arrangements to continue to be presented as assets. The Company will treat all debt issuance costs as a reduction to the carrying value of debt.

 

Consolidations

 

In February 2015, ASU No. 2015-02 was issued related to consolidations. This update makes some targeted changes to current consolidation guidance and impacts both the voting and the variable interest consolidation models. In particular, the update changes how companies determine whether limited partnerships or similar entities are variable interest entities. The update is effective in fiscal years, including interim periods, beginning after December 15, 2015. The Company currently consolidates certain variable interest entities and adoption of this guidance effective January 1, 2016 had no impact on the Consolidated Financial Statements or disclosures.

 

Recently Issued Accounting Pronouncements

 

Stock-based compensation

 

In March 2016, ASU No. 2016-09 was issued related to stock-based compensation. The new guidance simplifies the accounting for stock-based compensation transactions, including income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. This update is effective in fiscal years, including interim periods, beginning after December 15, 2016, and early adoption is permitted. The Company is currently evaluating this guidance and the impact it will have on the Consolidated Financial Statements and disclosures.

 

Leases

 

In February 2016, ASU No. 2016-02 was issued related to leases. The new guidance modifies the classification criteria and requires lessees to recognize the assets and liabilities arising from most leases on the balance sheet. This update is effective in fiscal years, including interim periods, beginning after December 15, 2018, and early adoption is permitted. The Company is currently evaluating this guidance and the impact it will have on the Consolidated Financial Statements and disclosures.

 

Investments

 

In January 2016, ASU No. 2016-01 was issued related to financial instruments. The new guidance requires entities to measure equity investments that do not result in consolidation and are not accounted for under the equity method at fair value and recognize any changes in fair value in net income. This new guidance also updates certain disclosure requirements for these investments. This update is effective in fiscal years, including interim periods, beginning after December 15, 2017, and early adoption is not permitted. The Company is currently evaluating this guidance and the impact it will have on the Consolidated Financial Statements and disclosures.

 

Inventory

 

In July 2015, ASU No. 2015-11 was issued related to inventory, simplifying the subsequent measurement of inventories by replacing the lower of cost or market test with a lower of cost and net realizable value test. The update is effective in fiscal years, including interim periods, beginning after December 15, 2016, and early adoption is permitted. The Company does not expect the updated guidance to have an impact on the Consolidated Financial Statements or disclosures.

 

Revenue recognition

 

In May 2014, and further amended in August 2015, March 2016 and April 2016, ASUs No. 2014-09, No. 2015-14, No. 2016-08, and No. 2016-10 were issued related to revenue from contracts with customers. The new standard provides a five-step approach to be applied to all contracts with customers and also requires expanded disclosures about revenue recognition. In August 2015, the effective date was deferred to reporting periods, including interim periods, beginning after December 15, 2017, and will be applied retrospectively. Early adoption is not permitted. The Company is currently evaluating this guidance and the impact it will have on the Consolidated Financial Statements and disclosures.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) (ASU No. 2015-03 - Debt issuance costs)
Recently Adopted Accounting Pronouncements

 

 

 

 

 

 

 

 

 

 

At December 31, 2015

 

 

    

As Reported

    

As Adjusted

    

Other non-current assets

 

$

776

 

$

730

 

Debt (non-current)

 

$

6,087

 

$

6,041

 

 

SEGMENT INFORMATION (Tables)
Financial Information of Company's Segments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  

 

 

 

 

 

 

Advanced

  

 

 

 

 

 

 

 

  

 

 

Costs

 

Depreciation

 

Projects, Research

 

PreTax

  

 

  

 

 

 

 

 

Applicable

 

and

 

and Development 

 

Income

 

Capital

 

 

    

Sales

    

to Sales

    

Amortization

    

and Exploration

    

(Loss)

    

Expenditures(1)

 

Three Months Ended March 31, 2016

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Carlin

 

$

246

 

$

189

 

$

49

 

$

3

 

$

2

 

$

36

 

Phoenix:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gold

 

 

64

 

 

49

 

 

15

 

 

 

 

 

 

 

 

 

 

Copper

 

 

21

 

 

22

 

 

5

 

 

 

 

 

 

 

 

 

 

Total Phoenix

 

 

85

 

 

71

 

 

20

 

 

 —

 

 

(11)

 

 

4

 

Twin Creeks

 

 

159

 

 

60

 

 

13

 

 

2

 

 

83

 

 

6

 

CC&V (2)

 

 

65

 

 

33

 

 

18

 

 

3

 

 

10

 

 

21

 

Other North America

 

 

 —

 

 

 —

 

 

 —

 

 

7

 

 

(9)

 

 

36

 

North America

 

 

555

 

 

353

 

 

100

 

 

15

 

 

75

 

 

103

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Yanacocha

 

 

211

 

 

128

 

 

69

 

 

9

 

 

(11)

 

 

14

 

Merian

 

 

 —

 

 

 —

 

 

1

 

 

3

 

 

(4)

 

 

82

 

Other South America

 

 

 —

 

 

 —

 

 

3

 

 

6

 

 

(11)

 

 

 —

 

South America

 

 

211

 

 

128

 

 

73

 

 

18

 

 

(26)

 

 

96

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Boddington:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gold

 

 

204

 

 

111

 

 

23

 

 

 

 

 

 

 

 

 

 

Copper

 

 

30

 

 

23

 

 

5

 

 

 

 

 

 

 

 

 

 

Total Boddington

 

 

234

 

 

134

 

 

28

 

 

 —

 

 

64

 

 

11

 

Tanami

 

 

120

 

 

59

 

 

19

 

 

3

 

 

38

 

 

24

 

Kalgoorlie

 

 

106

 

 

65

 

 

5

 

 

1

 

 

33

 

 

3

 

Batu Hijau:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gold

 

 

283

 

 

100

 

 

20

 

 

 

 

 

 

 

 

 

 

Copper

 

 

287

 

 

130

 

 

26

 

 

 

 

 

 

 

 

 

 

Total Batu Hijau

 

 

570

 

 

230

 

 

46

 

 

1

 

 

282

 

 

10

 

Other Asia Pacific

 

 

 —

 

 

 —

 

 

4

 

 

1

 

 

(5)

 

 

 —

 

Asia Pacific

 

 

1,030

 

 

488

 

 

102

 

 

6

 

 

412

 

 

48

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ahafo

 

 

101

 

 

57

 

 

15

 

 

5

 

 

20

 

 

17

 

Akyem

 

 

135

 

 

55

 

 

29

 

 

1

 

 

47

 

 

7

 

Other Africa

 

 

 —

 

 

 —

 

 

 —

 

 

1

 

 

(2)

 

 

 —

 

Africa

 

 

236

 

 

112

 

 

44

 

 

7

 

 

65

 

 

24

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate and Other

 

 

 —

 

 

 —

 

 

3

 

 

12

 

 

(36)

 

 

2

 

Consolidated

 

$

2,032

 

$

1,081

 

$

322

 

$

58

 

$

490

 

$

273

 

 


(1)

Includes a decrease in accrued capital expenditures of $24; consolidated capital expenditures on a cash basis were $297.  

(2)

On August 3, 2015, the Company acquired the CC&V gold mining business.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  

 

 

 

 

 

 

Advanced

  

 

 

 

 

 

 

 

  

 

 

Costs

 

Depreciation

 

Projects, Research

 

PreTax

  

 

  

 

 

 

 

 

Applicable

 

and

 

and Development 

 

Income

 

Capital

 

 

    

Sales

    

to Sales

    

Amortization

    

and Exploration

    

(Loss)

    

Expenditures(1)

 

Three Months Ended March 31, 2015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Carlin

 

$

276

 

$

178

 

$

45

 

$

3

 

$

47

 

$

57

 

Phoenix:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gold

 

 

61

 

 

41

 

 

10

 

 

 

 

 

 

 

 

 

 

Copper

 

 

34

 

 

25

 

 

6

 

 

 

 

 

 

 

 

 

 

Total Phoenix

 

 

95

 

 

66

 

 

16

 

 

1

 

 

8

 

 

7

 

Twin Creeks

 

 

149

 

 

59

 

 

13

 

 

2

 

 

74

 

 

19

 

Other North America

 

 

 —

 

 

 —

 

 

 —

 

 

5

 

 

(1)

 

 

6

 

North America

 

 

520

 

 

303

 

 

74

 

 

11

 

 

128

 

 

89

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Yanacocha

 

 

301

 

 

115

 

 

71

 

 

5

 

 

94

 

 

15

 

Merian

 

 

 —

 

 

 —

 

 

 —

 

 

2

 

 

(2)

 

 

86

 

Other South America

 

 

 —

 

 

 —

 

 

3

 

 

10

 

 

(13)

 

 

 —

 

South America

 

 

301

 

 

115

 

 

74

 

 

17

 

 

79

 

 

101

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Boddington:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gold

 

 

239

 

 

157

 

 

30

 

 

 

 

 

 

 

 

 

 

Copper

 

 

47

 

 

39

 

 

7

 

 

 

 

 

 

 

 

 

 

Total Boddington

 

 

286

 

 

196

 

 

37

 

 

1

 

 

58

 

 

11

 

Tanami

 

 

120

 

 

58

 

 

19

 

 

1

 

 

45

 

 

16

 

Waihi (2)

 

 

50

 

 

19

 

 

5

 

 

1

 

 

25

 

 

6

 

Kalgoorlie

 

 

74

 

 

60

 

 

5

 

 

 —

 

 

11

 

 

7

 

Batu Hijau:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gold

 

 

114

 

 

51

 

 

9

 

 

 

 

 

 

 

 

 

 

Copper

 

 

246

 

 

123

 

 

21

 

 

 

 

 

 

 

 

 

 

Total Batu Hijau

 

 

360

 

 

174

 

 

30

 

 

1

 

 

135

 

 

20

 

Other Asia Pacific

 

 

 —

 

 

 —

 

 

4

 

 

1

 

 

(9)

 

 

 —

 

Asia Pacific

 

 

890

 

 

507

 

 

100

 

 

5

 

 

265

 

 

60

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ahafo

 

 

121

 

 

56

 

 

15

 

 

6

 

 

44

 

 

21

 

Akyem

 

 

140

 

 

46

 

 

22

 

 

 —

 

 

71

 

 

11

 

Other Africa

 

 

 —

 

 

 —

 

 

 —

 

 

1

 

 

(3)

 

 

 —

 

Africa

 

 

261

 

 

102

 

 

37

 

 

7

 

 

112

 

 

32

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate and Other

 

 

 —

 

 

 —

 

 

4

 

 

21

 

 

(161)

 

 

6

 

Consolidated

 

$

1,972

 

$

1,027

 

$

289

 

$

61

 

$

423

 

$

288

 

 


(1)

Includes an increase in accrued capital expenditures of $4 consolidated capital expenditures on a cash basis were $284.

(2)

On October 29, 2015, the Company sold the Waihi mine. 

RECLAMATION AND REMEDIATION (Tables)

 

 

 

 

 

 

 

 

 

 

Three Months Ended 

 

 

 

March 31, 

 

 

    

2016

    

2015

  

Reclamation Accretion

 

$

23

 

$

21

 

 

 

 

 

 

 

 

 

Remediation

 

 

1

 

 

1

 

Remediation Accretion

 

 

1

 

 

1

 

 

 

 

2

 

 

2

 

 

 

$

25

 

$

23

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended 

 

 

 

March 31, 

 

 

    

2016

    

2015

 

Reclamation balance at beginning of period

 

$

1,553

 

$

1,497

 

Additions, changes in estimates and other 

 

 

2

 

 

(2)

 

Payments and other

 

 

(3)

 

 

(3)

 

Accretion expense 

 

 

23

 

 

21

 

Reclamation balance at end of period

 

$

1,575

 

$

1,513

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended 

 

 

 

March 31, 

 

 

    

2016

    

2015

 

Remediation balance at beginning of period

 

$

318

 

$

192

 

Additions, changes in estimates and other 

 

 

 —

 

 

(1)

 

Payments and other

 

 

(3)

 

 

(21)

 

Accretion expense 

 

 

1

 

 

1

 

Remediation balance at end of period

 

$

316

 

$

171

 

 

INCOME AND MINING TAXES (Tables)
Income and Mining Tax Expense Reconciliation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended March 31, 

 

 

      

2016

      

2015

 

Income (loss) before income and mining tax and other items

 

 

 

    

$

490

 

 

 

    

$

423

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tax at statutory rate

 

35

%

 

$

172

 

35

%

 

$

148

 

Reconciling items:

 

 

 

 

 

 

 

 

 

 

 

 

 

Percentage depletion 

 

(9)

%

 

 

(42)

 

(3)

%

 

 

(15)

 

Change in valuation allowance on deferred tax assets

 

39

%

 

 

194

 

10

%

 

 

44

 

Mining and other taxes

 

5

%

 

 

23

 

2

%

 

 

8

 

Tax impact on sale of assets

 

(7)

%

 

 

(35)

 

 —

%

 

 

 —

 

Effect of foreign earnings, net of credits

 

2

%

 

 

10

 

1

%

 

 

3

 

Other 

 

1

%

 

 

2

 

1

%

 

 

5

 

Income and mining tax benefit (expense)

 

66

%

 

$

324

 

46

%

 

$

193

 

 

NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS (Tables)

 

 

 

 

 

 

 

 

 

 

Three Months Ended 

 

 

 

March 31, 

 

 

 

2016

 

2015

 

Minera Yanacocha 

    

$

(11)

    

$

5

 

Batu Hijau

 

 

95

 

 

45

 

TMAC

 

 

 —

 

 

(6)

 

Merian

 

 

(1)

 

 

 —

 

Other 

 

 

 —

 

 

2

 

 

 

$

83

 

$

46

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

At March 31, 2016

 

At December 31, 2015

 

 

    

Batu Hijau

    

Merian

    

Batu Hijau

    

Merian

 

Current assets

    

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

680

 

$

18

 

$

419

 

$

16

 

Trade receivables

 

 

147

 

 

 —

 

 

179

 

 

 —

 

Other current assets (1)

 

 

446

 

 

47

 

 

362

 

 

23

 

 

 

 

1,273

 

 

65

 

 

960

 

 

39

 

Non-current assets

 

 

 

 

 

 

 

 

 

 

 

 

 

Property, plant and mine development, net

 

 

1,072

 

 

641

 

 

1,103

 

 

564

 

Stockpiles and ore on leach pads

 

 

1,064

 

 

 —

 

 

1,104

 

 

 —

 

Other non-current assets (2)

 

 

317

 

 

 —

 

 

316

 

 

 —

 

Total assets

 

$

3,726

 

$

706

 

$

3,483

 

$

603

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

Debt

 

$

327

 

$

 —

 

$

140

 

$

 —

 

Accounts Payable

 

 

59

 

 

 —

 

 

81

 

 

 —

 

Other current liabilities (3)

 

 

125

 

 

38

 

 

71

 

 

35

 

 

 

 

511

 

 

38

 

 

292

 

 

35

 

Non-current liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

Debt

 

 

2

 

 

 —

 

 

187

 

 

 —

 

Reclamation and remediation liabilities

 

 

249

 

 

8

 

 

245

 

 

8

 

Other non-current liabilities (4)

 

 

351

 

 

 —

 

 

330

 

 

 —

 

Total liabilities

 

$

1,113

 

$

46

 

$

1,054

 

$

43

 

 


(1)

Other current assets include other accounts receivables, inventories, stockpiles and ore on leach pads, prepaid assets, restricted cash, and other current assets.

(2)

Other non-current assets include tax receivables and other non-current assets.

(3)

Other current liabilities include employee-related benefits, tax payables, reclamation and remediation liabilities and other current liabilities.

(4)

Other non-current liabilities include deferred income tax liabilities and employee-related benefits.

INCOME (LOSS) PER SHARE (Tables)
Summary of Income (Loss) per Common Share, Basic and Diluted

 

 

 

 

 

 

 

 

 

 

Three Months Ended 

 

 

 

March 31, 

 

 

    

2016

    

2015

 

Net income (loss) attributable to Newmont stockholders 

 

 

 

 

 

 

 

Continuing operations

 

$

78

 

$

175

 

Discontinued operations 

 

 

(26)

 

 

8

 

 

 

$

52

 

$

183

 

 

 

 

 

 

 

 

 

Weighted average common shares (millions):

 

 

 

 

 

 

 

Basic 

 

 

530

 

 

499

 

Effect of employee stock-based awards 

 

 

1

 

 

1

 

Diluted 

 

 

531

 

 

500

 

 

 

 

 

 

 

 

 

Income (loss) per common share

 

 

 

 

 

 

 

Basic:

 

 

 

 

 

 

 

Continuing operations 

 

$

0.15

 

$

0.35

 

Discontinued operations 

 

 

(0.05)

 

 

0.02

 

 

 

$

0.10

 

$

0.37

 

Diluted:

 

 

 

 

 

 

 

Continuing operations 

 

$

0.15

 

$

0.35

 

Discontinued operations 

 

 

(0.05)

 

 

0.02

 

 

 

$

0.10

 

$

0.37

 

 

EMPLOYEE PENSION AND OTHER BENEFIT PLANS (Tables)
Employee Pension and Other Benefit Plans

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended 

 

 

 

March 31, 

 

 

    

2016

    

2015

 

Pension benefit costs, net 

 

 

 

 

 

 

 

Service cost 

 

$

7

 

$

8

 

Interest cost 

 

 

12

 

 

11

 

Expected return on plan assets 

 

 

(14)

 

 

(15)

 

Amortization, net

 

 

6

 

 

7

 

 

 

$

11

 

$

11

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended 

 

 

 

March 31, 

 

 

    

2016

    

2015

 

Other benefit costs, net 

 

 

 

  

 

 

 

Service cost 

 

$

 —

 

$

1

 

Interest cost 

 

 

1

 

 

2

 

Amortization, net

 

 

(1)

 

 

 —

 

 

 

$

 —

 

$

3

 

 

STOCK BASED COMPENSATION (Tables)
Stock Option and Other Stock Based Compensation

 

 

 

 

 

 

 

 

 

 

Three Months Ended 

 

 

 

March 31, 

 

 

    

2016

    

2015

 

Stock-based compensation:

 

 

 

  

 

 

 

Performance leveraged stock units

 

$

8

 

$

10

 

Restricted stock units

 

 

6

 

 

8

 

Strategic stock units

 

 

2

 

 

2

 

 

 

$

16

 

$

20

 

 

FAIR VALUE ACCOUNTING (Tables)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fair Value at March 31, 2016

 

 

    

Total

    

Level 1

    

Level 2

    

Level 3

    

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents 

 

$

2,461

 

$

2,461

 

$

 —

 

$

 —

 

Restricted assets (1)

 

 

223

 

 

223

 

 

 —

 

 

 —

 

Marketable equity securities: 

 

 

 

 

 

 

 

 

 

 

 

 

 

Extractive industries

 

 

30

 

 

30

 

 

 —

 

 

 —

 

Other

 

 

16

 

 

16

 

 

 —

 

 

 —

 

Marketable debt securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

Asset backed commercial paper 

 

 

20

 

 

 —

 

 

 —

 

 

20

 

Auction rate securities 

 

 

7

 

 

 —

 

 

 —

 

 

7

 

Trade receivable from provisional copper and
gold concentrate sales, net 

 

 

232

 

 

232

 

 

 —

 

 

 —

 

 

 

$

2,989

 

$

2,962

 

$

 —

 

$

27

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

Debt (2)

 

$

5,625

 

$

 —

 

$

5,625

 

$

 —

 

Derivative instruments, net: 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign exchange forward contracts

 

 

41

 

 

 —

 

 

41

 

 

 —

 

Diesel forward contracts

 

 

25

 

 

 —

 

 

25

 

 

 —

 

Boddington contingent consideration

 

 

10

 

 

 —

 

 

 —

 

 

10

 

Holt property royalty

 

 

164

 

 

 —

 

 

 —

 

 

164

 

 

 

$

5,865

 

$

 —

 

$

5,691

 

$

174

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fair Value at December 31, 2015

 

 

    

Total

    

Level 1

    

Level 2

    

Level 3

    

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents 

 

$

2,782

 

$

2,782

 

$

 —

 

$

 —

 

Restricted assets (1)

 

 

132

 

 

132

 

 

 —

 

 

 —

 

Marketable equity securities: 

 

 

 

 

 

 

 

 

 

 

 

 

 

Extractive industries

 

 

186

 

 

186

 

 

 —

 

 

 —

 

Other

 

 

16

 

 

16

 

 

 —

 

 

 —

 

Marketable debt securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

Asset backed commercial paper 

 

 

18

 

 

 —

 

 

 —

 

 

18

 

Auction rate securities 

 

 

7

 

 

 —

 

 

 —

 

 

7

 

Trade receivable from provisional copper and
gold concentrate sales, net 

 

 

178

 

 

178

 

 

 —

 

 

 —

 

 

 

$

3,319

 

$

3,294

 

$

 —

 

$

25

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

Debt (2)

 

$

5,469

 

$

 —

 

$

5,469

 

$

 —

 

Derivative instruments, net: 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign exchange forward contracts

 

 

60

 

 

 —

 

 

60

 

 

 —

 

Diesel forward contracts

 

 

32

 

 

 —

 

 

32

 

 

 —

 

Boddington contingent consideration

 

 

10

 

 

 —

 

 

 —

 

 

10

 

Holt property royalty

 

 

129

 

 

 —

 

 

 —

 

 

129

 

 

 

$

5,700

 

$

 —

 

$

5,561

 

$

139

 

 


(1)

Restricted asset carrying amounts approximate their fair value.

(2)

Debt, exclusive of capital leases, is carried at amortized cost. The outstanding carrying value was $5,682 and $6,167 at March 31, 2016 and December 31, 2015, respectively. The fair value measurement of debt was based on prices obtained from readily available pricing sources.

 

 

 

 

 

 

 

 

 

 

 

 

 

    

   At March 31,   

    

 

    

 

    

Range/Weighted

 

Description

    

2016

    

Valuation technique

    

Unobservable input

    

average

 

Auction rate securities

 

$

7

 

Risk-adjusted indicative price

 

Recoverability rate

 

 

85

%

Asset backed commercial paper

 

$

20

 

Risk-adjusted indicative price

 

Recoverability rate

 

 

90

%

Boddington contingent consideration

 

$

10

 

Monte Carlo

 

Discount rate

 

 

3.74

%

 

 

 

 

 

 

 

Short-term gold price

 

$

1,183

 

 

 

 

 

 

 

 

Long-term gold price

 

$

1,300

 

 

 

 

 

 

 

 

Short-term copper price

 

$

2.12

 

 

 

 

 

 

 

 

Long-term copper price

 

$

3.00

 

 

 

 

 

 

 

 

Long-term Australian to U.S. dollar exchange rate

 

$

0.80

 

Holt property royalty

 

$

164

 

Monte Carlo

 

Discount rate

 

 

3.86

%

 

 

 

 

 

 

 

Short-term gold price

 

$

1,183

 

 

 

 

 

 

 

 

Long-term gold price

 

$

1,300

 

 

 

 

 

 

 

 

Gold production scenarios (in 000's of ounces)

 

 

381 - 1,620

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    

At December 31, 

    

 

    

 

    

Range/Weighted

 

Description

    

2015

    

Valuation technique

    

Unobservable input

    

average

 

Auction rate securities

 

$

7

 

Risk-adjusted indicative price

 

Recoverability rate

 

 

85

%

Asset backed commercial paper

 

$

18

 

Risk-adjusted indicative price

 

Recoverability rate

 

 

90

%

Boddington contingent consideration

 

$

10

 

Monte Carlo

 

Discount rate

 

 

5.32

%

 

 

 

 

 

 

 

Short-term gold price

 

$

1,106

 

 

 

 

 

 

 

 

Long-term gold price

 

$

1,300

 

 

 

 

 

 

 

 

Short-term copper price

 

$

2.22

 

 

 

 

 

 

 

 

Long-term copper price

 

$

3.00

 

 

 

 

 

 

 

 

Long-term Australian to U.S. dollar exchange rate

 

$

0.80

 

Holt property royalty

 

$

129

 

Monte Carlo

 

Discount rate

 

 

5.06

%

 

 

 

 

 

 

 

Short-term gold price

 

$

1,106

 

 

 

 

 

 

 

 

Long-term gold price

 

$

1,300

 

 

 

 

 

 

 

 

Gold production scenarios (in 000's of ounces)

 

 

398 - 1,636

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asset

 

 

 

 

 

 

 

 

 

 

 

Auction

 

Backed

 

 

 

Boddington

 

Holt

 

 

 

 

 

Rate

 

Commercial

 

Total

 

Contingent

 

Property

 

Total

 

 

   

Securities

   

Paper

   

   Assets   

   

Consideration (1)

   

Royalty (2)

   

Liabilities

   

Fair value at December 31, 2015

 

$

7

 

$

18

 

$

25

 

$

10

 

$

129

 

$

139

 

Settlements

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

(2)

 

 

(2)

 

Revaluation

 

 

 —

 

 

2

 

 

2

 

 

 —

 

 

37

 

 

37

 

Fair value at March 31, 2016

 

$

7

 

$

20

 

$

27

 

$

10

 

$

164

 

$

174

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asset

 

 

 

 

 

 

 

 

 

 

 

Auction

 

Backed

 

 

 

Boddington

 

Holt

 

 

 

 

 

Rate

 

Commercial

 

Total

 

Contingent

 

Property

 

Total

 

 

   

Securities

   

Paper

   

   Assets   

   

Consideration (1)

   

Royalty (2)

   

Liabilities

   

Fair value at December 31, 2014

 

$

6

 

$

24

 

$

30

 

$

10

 

$

179

 

$

189

 

Settlements

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

(3)

 

 

(3)

 

Revaluation

 

 

1

 

 

(3)

 

 

(2)

 

 

 —

 

 

(12)

 

 

(12)

 

Fair value at March 31, 2015

 

$

7

 

$

21

 

$

28

 

$

10

 

$

164

 

$

174

 

 


(1)

The gain (loss) recognized is included in Other expense, net.

(2)

The gain (loss) recognized is included in Income (loss) from discontinued operations.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  

 

 

Asset

 

 

 

 

 

 

 

 

 

 

 

Auction

 

Backed

 

 

 

Boddington

 

Holt

 

 

 

 

 

Rate

 

Commercial

 

Total

 

Contingent

 

Property

 

Total

 

 

 

Securities

   

Paper

   

   Assets   

   

Consideration (1)

   

Royalty (2)

   

Liabilities

 

Fair value at December 31, 2015

 

$

7

 

$

18

 

$

25

 

$

10

 

$

129

 

$

139

 

Settlements

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

(2)

 

 

(2)

 

Revaluation

 

 

 —

 

 

2

 

 

2

 

 

 —

 

 

37

 

 

37

 

Fair value at March 31, 2016

 

$

7

 

$

20

 

$

27

 

$

10

 

$

164

 

$

174

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  

 

 

Asset

 

 

 

 

 

 

 

 

 

 

 

Auction

 

Backed

 

 

 

Boddington

 

Holt

 

 

 

 

 

Rate

 

Commercial

 

Total

 

Contingent

 

Property

 

Total

 

 

 

Securities

   

Paper

  

   Assets   

  

Consideration (1)

   

Royalty (2)

  

Liabilities

 

Fair value at December 31, 2014

 

$

6

 

$

24

 

$

30

 

$

10

 

$

179

 

$

189

 

Settlements

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

(3)

 

 

(3)

 

Revaluation

 

 

1

 

 

(3)

 

 

(2)

 

 

 —

 

 

(12)

 

 

(12)

 

Fair value at March 31, 2015

 

$

7

 

$

21

 

$

28

 

$

10

 

$

164

 

$

174

 

 


(1)

The gain (loss) recognized is included in Other expense, net.

(2)

The gain (loss) recognized is included in Income (loss) from discontinued operations.

 

DERIVATIVE INSTRUMENTS (Tables)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fair Values of Derivative Instruments

 

 

 

At March 31, 2016

 

 

  

Other

  

Other

  

Other

  

Other

 

 

  

Current

  

Non-current

  

Current

  

Non-current

 

 

    

Assets

    

Assets

    

Liabilities

    

Liabilities

    

Foreign currency exchange contracts:

 

 

 

 

 

 

 

 

 

 

 

 

 

A$ operating fixed forwards 

 

$

 —

 

$

 —

 

$

27

 

$

14

 

Diesel fixed forwards

 

 

 —

 

 

 —

 

 

22

 

 

3

 

Total derivative instruments (Note 17)

 

$

 —

 

$

 —

 

$

49

 

$

17

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fair Values of Derivative Instruments

 

 

 

At December 31, 2015

 

 

  

Other

  

Other

  

Other

  

Other

 

 

  

Current

  

Non-current

  

Current

  

Non-current

 

 

    

Assets

    

Assets

    

Liabilities

    

Liabilities

    

Foreign currency exchange contracts:

 

 

 

 

 

 

 

 

 

 

 

 

 

A$ operating fixed forwards 

 

$

 —

 

$

 —

 

$

36

 

$

24

 

Diesel fixed forwards

 

 

 —

 

 

 —

 

 

27

 

 

5

 

Total derivative instruments (Note 17)

 

$

 —

 

$

 —

 

$

63

 

$

29

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign Currency

 

Diesel Fixed

 

Interest

 

 

 

Exchange Contracts

 

Forward Contracts

 

Rate Contracts

 

 

    

2016

    

2015

    

2016

    

2015

    

2016

    

2015

 

For the three months ended March 31, 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash flow hedging relationships:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gain (loss) recognized in Other comprehensive income (loss) (effective portion)

 

$

7

 

$

(27)

 

$

(2)

 

$

(5)

 

$

 —

 

$

 —

 

Gain (loss) reclassified from Accumulated other comprehensive income (loss) into income (loss) (effective portion) (1)

 

$

(10)

 

$

(7)

 

$

(9)

 

$

(7)

 

$

(3)

 

$

(5)

 

Gain (loss) reclassified from Accumulated other comprehensive income (loss) into income (loss) (ineffective portion) (2)

 

$

 —

 

$

 —

 

$

 —

 

$

1

 

$

 —

 

$

 —

 

 


(1)

The gain (loss) recognized for the effective portion of cash flow hedges is included in Cost applicable to sales and Interest expense,  net.  

(2)

The ineffective portion recognized for cash flow hedges is included in Other income, net.

 

 

 

 

 

 

 

 

 

 

 

 

 

Expected Maturity Date

 

 

    

2016

    

2017

    

2018

    

Total/Average

    

A$ Operating Fixed Forward Contracts: 

 

 

 

 

 

 

 

 

 

A$ notional (millions) 

 

112

 

105

 

6

 

223

 

Average rate ($/A$) 

 

0.95

 

0.93

 

0.92

 

0.94

 

Expected hedge ratio

 

12

%  

8

%  

4

%  

 

 

 

 

 

 

 

 

 

 

 

 

 

Expected Maturity Date

 

 

    

2016

    

2017

    

Total/Average

    

Diesel Fixed Forward Contracts:

 

 

 

 

 

 

 

Diesel gallons (millions) 

 

17

 

11

 

28

 

Average rate ($/gallon) 

 

2.22

 

1.84

 

2.06

 

Expected hedge ratio

 

58

%  

38

%  

 

 

 

INVESTMENTS (Tables)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

At March 31, 2016

 

 

 

Cost/Equity

 

Unrealized

 

Fair/Equity

 

 

    

Basis

    

Gain

    

Loss

    

Basis

 

Current: 

 

 

 

 

 

 

 

 

 

 

 

 

 

Marketable Equity Securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

Gabriel Resources Ltd.

 

$

5

 

$

2

 

$

 —

 

$

7

 

Other

 

 

15

 

 

6

 

 

(1)

 

 

20

 

 

 

$

20

 

$

8

 

$

(1)

 

$

27

 

Non-current: 

 

 

 

 

 

 

 

 

 

 

 

 

 

Marketable Debt Securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

Asset backed commercial paper

 

$

19

 

$

1

 

$

 —

 

$

20

 

Auction rate securities 

 

 

8

 

 

 —

 

 

(1)

 

 

7

 

 

 

 

27

 

 

1

 

 

(1)

 

 

27

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Marketable Equity Securities

 

 

18

 

 

1

 

 

 —

 

 

19

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other investments, at cost   

 

 

6

 

 

 —

 

 

 —

 

 

6

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity Method Investments: 

 

 

 

 

 

 

 

 

 

 

 

 

 

TMAC

 

 

101

 

 

 —

 

 

 —

 

 

101

 

Minera La Zanja S.R.L.

 

 

69

 

 

 —

 

 

 —

 

 

69

 

Novo Resources Corp.

 

 

15

 

 

 —

 

 

 —

 

 

15

 

Euronimba Ltd.

 

 

3

 

 

 —

 

 

 —

 

 

3

 

 

 

$

239

 

$

2

 

$

(1)

 

$

240

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

At December 31, 2015

 

 

 

Cost/Equity

 

Unrealized

 

Fair/Equity

 

 

    

Basis

    

Gain

    

Loss

    

Basis

 

Current: 

 

 

 

 

 

 

 

 

 

 

 

 

 

Marketable Equity Securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

Gabriel Resources Ltd.

 

$

5

 

$

 —

 

$

 —

 

$

5

 

Other

 

 

14

 

 

2

 

 

(2)

 

 

14

 

 

 

$

19

 

$

2

 

$

(2)

 

$

19

 

Non-current: 

 

 

 

 

 

 

 

 

 

 

 

 

 

Marketable Debt Securities: 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asset backed commercial paper

 

$

17

 

$

1

 

$

 —

 

$

18

 

Auction rate securities 

 

 

8

 

 

 —

 

 

(1)

 

 

7

 

 

 

 

25

 

 

1

 

 

(1)

 

 

25

 

Marketable Equity Securities: 

 

 

 

 

 

 

 

 

 

 

 

 

 

Regis Resources Ltd.

 

 

81

 

 

82

 

 

 —

 

 

163

 

Other 

 

 

17

 

 

3

 

 

 —

 

 

20

 

 

 

 

98

 

 

85

 

 

 —

 

 

183

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other investments, at cost   

 

 

6

 

 

 —

 

 

 —

 

 

6

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity Method Investments: 

 

 

 

 

 

 

 

 

 

 

 

 

 

TMAC

 

 

101

 

 

 —

 

 

 —

 

 

101

 

Minera La Zanja S.R.L.

 

 

71

 

 

 —

 

 

 —

 

 

71

 

Novo Resources Corp.

 

 

14

 

 

 —

 

 

 —

 

 

14

 

Euronimba Ltd.

 

 

2

 

 

 —

 

 

 —

 

 

2

 

 

 

$

317

 

$

86

 

$

(1)

 

$

402

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Less than 12 Months

 

12 Months or Greater

 

Total

 

At March 31, 2016

    

Fair Value

    

Unrealized
Losses

    

Fair Value

    

Unrealized
Losses

    

Fair Value

    

Unrealized
Losses

 

Marketable equity securities

 

$

3

 

$

1

 

$

 —

 

$

 —

 

$

3

 

$

1

 

Auction rate securities 

 

 

 —

 

 

 —

 

 

7

 

 

1

 

 

7

 

 

1

 

 

 

$

3

 

$

1

 

$

7

 

$

1

 

$

10

 

$

2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Less than 12 Months

 

12 Months or Greater

 

Total

 

At December 31, 2015

    

Fair Value

    

Unrealized
Losses

    

Fair Value

    

Unrealized
Losses

    

Fair Value

    

Unrealized
Losses

 

Marketable equity securities

 

$

5

 

$

2

 

$

 —

 

$

 —

 

$

5

 

$

2

 

Auction rate securities 

 

 

 —

 

 

 —

 

 

7

 

 

1

 

 

7

 

 

1

 

 

 

$

5

 

$

2

 

$

7

 

$

1

 

$

12

 

$

3

 

 

INVENTORIES (Tables) (INVENTORIES)
Summary of Inventories

 

 

 

 

 

 

 

 

 

 

    At March 31,     

 

At December 31, 

 

 

    

2016

    

2015

 

Materials and supplies

 

$

459

 

$

454

 

In-process

 

 

131

 

 

118

 

Concentrate and copper cathode

 

 

109

 

 

128

 

Precious metals

 

 

11

 

 

10

 

 

 

$

710

 

$

710

 

 

STOCKPILES AND ORE ON LEACH PADS (Tables)

 

 

 

 

 

 

 

 

 

 

    At March 31,     

 

At December 31, 

 

 

    

2016

    

2015

 

Current:

 

 

   

 

 

   

 

Stockpiles

 

$

494

 

$

554

 

Ore on leach pads

 

 

370

 

 

342

 

 

 

$

864

 

$

896

 

Non-current:

 

 

   

 

 

   

 

Stockpiles

 

$

2,655

 

$

2,622

 

Ore on leach pads

 

 

366

 

 

378

 

 

 

$

3,021

 

$

3,000

 

 

 

 

 

 

 

 

 

 

 

 

    At March 31,     

 

At December 31, 

 

 

    

2016

    

2015

 

Stockpiles and ore on leach pads:

 

 

 

 

 

 

 

Carlin

 

$

407

 

$

394

 

Phoenix

 

 

98

 

 

106

 

Twin Creeks

 

 

339

 

 

329

 

CC&V

 

 

348

 

 

319

 

Yanacocha

 

 

399

 

 

440

 

Merian

 

 

5

 

 

4

 

Boddington

 

 

390

 

 

390

 

Tanami

 

 

9

 

 

12

 

Kalgoorlie

 

 

107

 

 

109

 

Batu Hijau

 

 

1,192

 

 

1,218

 

Ahafo

 

 

469

 

 

456

 

Akyem

 

 

122

 

 

119

 

 

 

$

3,885

 

$

3,896

 

 

OTHER LIABILITIES (Tables)
Other Liabilities

 

 

 

 

 

 

 

 

 

 

    At March 31,     

 

At December 31, 

 

 

    

2016

    

2015

    

Other current liabilities:

 

 

 

 

 

 

 

Accrued operating costs

 

$

106

 

$

105

 

Accrued capital expenditures

 

 

95

 

 

121

 

Reclamation and remediation liabilities

 

 

70

 

 

71

 

Accrued interest

 

 

67

 

 

71

 

Derivative instruments

 

 

49

 

 

63

 

Royalties

 

 

46

 

 

63

 

Holt property royalty

 

 

12

 

 

10

 

Taxes other than income and mining

 

 

8

 

 

9

 

Other

 

 

32

 

 

27

 

 

 

$

485

 

$

540

 

 

 

 

 

 

 

 

 

Other non-current liabilities:

 

 

 

 

 

 

 

Holt property royalty

 

$

152

 

$

119

 

Income and mining taxes 

 

 

79

 

 

78

 

Power supply agreements

 

 

32

 

 

31

 

Social development obligations

 

 

29

 

 

29

 

Derivative instruments

 

 

17

 

 

29

 

Boddington contingent consideration

 

 

10

 

 

10

 

Other 

 

 

14

 

 

14

 

 

 

$

333

 

$

310

 

 

CHANGES IN EQUITY (Tables)
Changes in Equity

 

 

 

 

 

 

 

 

 

 

Three Months Ended March 31, 

 

 

  

2016

 

2015

 

Common stock:

 

 

 

 

 

 

 

At beginning of period

     

$

847

    

$

798

 

Stock-based awards

 

 

2

 

 

2

 

At end of period 

 

 

849

 

 

800

 

Additional paid-in capital:

 

 

 

 

 

 

 

At beginning of period 

 

 

9,427

 

 

8,712

 

Stock-based awards

 

 

10

 

 

17

 

Sale of noncontrolling interests

 

 

 —

 

 

12

 

At end of period 

 

 

9,437

 

 

8,741

 

Accumulated other comprehensive income (loss):

 

 

 

 

 

 

 

At beginning of period 

 

 

(334)

 

 

(478)

 

Other comprehensive income (loss)

 

 

(52)

 

 

(14)

 

At end of period 

 

 

(386)

 

 

(492)

 

Retained earnings:

 

 

 

 

 

 

 

At beginning of period 

 

 

1,410

 

 

1,242

 

Net income (loss) attributable to Newmont stockholders 

 

 

52

 

 

183

 

Dividends paid

 

 

(13)

 

 

(12)

 

At end of period 

 

 

1,449

 

 

1,413

 

Noncontrolling interests:

 

 

 

 

 

 

 

At beginning of period 

 

 

2,942

 

 

2,815

 

Net income (loss) attributable to noncontrolling interests 

 

 

83

 

 

46

 

Dividends paid to noncontrolling interests

 

 

(146)

 

 

(3)

 

Funding from noncontrolling interests, net

 

 

26

 

 

24

 

Sale of noncontrolling interests, net

 

 

 —

 

 

22

 

Other

 

 

(1)

 

 

(3)

 

At end of period 

 

 

2,904

 

 

2,901

 

Total equity 

 

$

14,253

 

$

13,363

 

 

RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pension and

 

Changes in

 

 

 

 

 

Unrealized 

 

Foreign

 

other

 

fair value of

 

 

 

 

 

(loss) on

 

currency

 

post‑retirement

 

cash flow

 

 

 

 

 

marketable

 

translation

 

benefit

 

hedge

 

 

 

 

 

securities, net

 

adjustments

 

adjustments

 

instruments

 

Total

 

Balance at December 31, 2015

  

$

(43)

  

$

116

  

$

(207)

  

$

(200)

  

$

(334)

 

Change in other comprehensive income (loss) before reclassifications

 

 

26

 

 

3

 

 

 —

 

 

5

 

 

34

 

Reclassifications from accumulated other comprehensive income (loss)

 

 

(103)

 

 

 —

 

 

3

 

 

14

 

 

(86)

 

Net current-period change

 

 

(77)

 

 

3

 

 

3

 

 

19

 

 

(52)

 

Balance at March 31, 2016

 

$

(120)

 

$

119

 

$

(204)

 

$

(181)

 

$

(386)

 

 

 

 

 

 

 

 

 

 

 

 

Details about Accumulated Other Comprehensive Income (Loss) Components

 

Amount Reclassified from Accumulated Other Comprehensive Income (Loss)

 

Affected Line Item in the Condensed Consolidated Statements of Income

 

 

 

Three Months Ended March 31, 

 

 

 

 

    

2016

    

2015

     

 

 

Marketable securities adjustments:

 

 

 

 

 

 

 

 

 

Sale of marketable securities

 

$

(103)

 

$

(1)

 

Other income, net

 

Impairment of marketable securities

 

 

 —

 

 

57

 

Other income, net

 

Total before tax

 

 

(103)

 

 

56

 

 

 

Tax benefit (expense)

 

 

 —

 

 

 —

 

 

 

Net of tax

 

$

(103)

 

$

56

 

 

 

Pension and other post-retirement benefit adjustments:

 

 

 

 

 

 

 

 

 

Amortization

 

$

5

 

$

7

 

(1)

 

Tax benefit (expense)

 

 

(2)

 

 

(2)

 

 

 

Net of tax

 

$

3

 

$

5

 

 

 

 

 

 

 

 

 

 

 

 

 

Hedge instruments adjustments:

 

 

 

 

 

 

 

 

 

Operating cash flow hedges (effective portion)

 

$

19

 

$

14

 

Costs applicable to sales

 

Operating cash flow hedges (ineffective portion)

 

 

 —

 

 

(1)

 

Other income, net

 

Interest rate contracts

 

 

3

 

 

5

 

Interest expense, net

 

Total before tax

 

 

22

 

 

18

 

 

 

Tax benefit (expense)

 

 

(8)

 

 

(6)

 

 

 

Net of tax

 

$

14

 

$

12

 

 

 

Total reclassifications for the period, net of tax

 

$

(86)

 

$

73

 

 

 

 


(1)

Included in General and administrative or included as a component of Costs applicable to sales which are incurred in the inventory/production process. Refer to Note 2 to the Consolidated Financial Statements for the year ended December 31, 2015 filed February 17, 2016 on Form 10-K for information on costs that benefit the inventory/production process.

NET CHANGE IN OPERATING ASSETS AND LIABILITIES (Tables)
Net Cash Provided from Operations Attributable to the Net Change in Operating Assets and Liabilities

 

 

 

 

 

 

 

 

 

 

Three Months Ended March 31, 

 

 

 

2016

 

2015

 

Decrease (increase) in operating assets:

 

 

 

 

 

 

 

Trade and other accounts receivables 

    

$

(31)

    

$

38

 

Inventories, stockpiles and ore on leach pads 

 

 

(37)

 

 

(60)

 

EGR refinery and other assets (1)

 

 

 —

 

 

(657)

 

Other assets 

 

 

(5)

 

 

85

 

Increase (decrease) in operating liabilities:

 

 

 

 

 

 

 

Accounts payable and other accrued liabilities 

 

 

(61)

 

 

(112)

 

EGR refinery and other liabilities (1)

 

 

 —

 

 

657

 

Reclamation liabilities 

 

 

(6)

 

 

(24)

 

 

 

$

(140)

 

$

(73)

 

 


(1)

On July 24, 2015, the Company sold its ownership interest in European Gold Refinery Holdings (“EGR”).

CONDENSED CONSOLIDATING FINANCIAL STATEMENTS (Tables)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended March 31, 2016

 

 

 

(Issuer)

 

(Guarantor)

 

(Non-Guarantor)

 

 

 

Newmont

 

 

 

Newmont

 

 

 

 

 

 

 

 

 

 

Mining

 

 

 

Mining

 

Newmont

 

Other

 

 

 

Corporation

 

Condensed Consolidating Statement of Operation

    

Corporation

    

USA

    

Subsidiaries

    

Eliminations

    

Consolidated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales

 

$

 —

 

$

471

 

$

1,561

 

$

 —

 

$

2,032

 

Costs and expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Costs applicable to sales (1)

 

 

 —

 

 

306

 

 

775

 

 

 —

 

 

1,081

 

Depreciation and amortization 

 

 

 —

 

 

84

 

 

238

 

 

 —

 

 

322

 

Reclamation and remediation

 

 

 —

 

 

3

 

 

22

 

 

 —

 

 

25

 

Exploration 

 

 

 —

 

 

6

 

 

24

 

 

 —

 

 

30

 

Advanced projects, research and development 

 

 

 —

 

 

2

 

 

26

 

 

 —

 

 

28

 

General and administrative 

 

 

 —

 

 

17

 

 

40

 

 

 —

 

 

57

 

Other expense, net

 

 

 —

 

 

4

 

 

14

 

 

 —

 

 

18

 

 

 

 

 —

 

 

422

 

 

1,139

 

 

 —

 

 

1,561

 

Other income (expense) 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other income, net 

 

 

9

 

 

 —

 

 

89

 

 

 —

 

 

98

 

Interest income - intercompany 

 

 

30

 

 

 —

 

 

9

 

 

(39)

 

 

 —

 

Interest expense - intercompany 

 

 

(8)

 

 

 —

 

 

(31)

 

 

39

 

 

 —

 

Interest expense, net 

 

 

(71)

 

 

(2)

 

 

(6)

 

 

 —

 

 

(79)

 

 

 

 

(40)

 

 

(2)

 

 

61

 

 

 —

 

 

19

 

Income (loss) before income and mining tax and other items 

 

 

(40)

 

 

47

 

 

483

 

 

 —

 

 

490

 

Income and mining tax benefit (expense)

 

 

75

 

 

(11)

 

 

(388)

 

 

 —

 

 

(324)

 

Equity income (loss) of affiliates 

 

 

17

 

 

(274)

 

 

2

 

 

250

 

 

(5)

 

Income (loss) from continuing operations 

 

 

52

 

 

(238)

 

 

97

 

 

250

 

 

161

 

Income (loss) from discontinued operations 

 

 

 —

 

 

 —

 

 

(26)

 

 

 —

 

 

(26)

 

Net income (loss)

 

 

52

 

 

(238)

 

 

71

 

 

250

 

 

135

 

Net loss (income) attributable to noncontrolling interests 

 

 

 —

 

 

 —

 

 

(83)

 

 

 —

 

 

(83)

 

Net income (loss) attributable to Newmont stockholders

 

$

52

 

$

(238)

 

$

(12)

 

$

250

 

$

52

 

Comprehensive income (loss)

 

$

 —

 

$

(232)

 

$

10

 

$

305

 

$

83

 

Comprehensive loss (income) attributable to noncontrolling interests

 

 

 —

 

 

 —

 

 

(83)

 

 

 —

 

 

(83)

 

Comprehensive income (loss) attributable to Newmont stockholders

 

$

 —

 

$

(232)

 

$

(73)

 

$

305

 

$

 —

 

 


(1)

Excludes Depreciation and amortization and Reclamation and remediation.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended March 31, 2015

 

 

 

(Issuer)

 

(Guarantor)

 

(Non-Guarantor)

 

 

 

Newmont

 

 

 

Newmont

 

 

 

 

 

 

 

Mining

 

 

 

Mining

 

Newmont

 

Other

 

 

 

Corporation

 

Condensed Consolidating Statement of Operation

    

Corporation

    

USA

    

Subsidiaries

    

Eliminations

    

Consolidated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales

 

$

 —

 

$

502

 

$

1,470

 

$

 —

 

$

1,972

 

Costs and expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Costs applicable to sales (1)

 

 

 —

 

 

289

 

 

738

 

 

 —

 

 

1,027

 

Depreciation and amortization 

 

 

1

 

 

77

 

 

211

 

 

 —

 

 

289

 

Reclamation and remediation

 

 

 —

 

 

3

 

 

20

 

 

 —

 

 

23

 

Exploration 

 

 

 —

 

 

6

 

 

27

 

 

 —

 

 

33

 

Advanced projects, research and development 

 

 

 —

 

 

3

 

 

25

 

 

 —

 

 

28

 

General and administrative 

 

 

 —

 

 

14

 

 

44

 

 

 —

 

 

58

 

Other expense, net

 

 

 —

 

 

3

 

 

14

 

 

 —

 

 

17

 

 

 

 

1

 

 

395

 

 

1,079

 

 

 —

 

 

1,475

 

Other income (expense) 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other income, net 

 

 

(28)

 

 

9

 

 

30

 

 

 —

 

 

11

 

Interest income - intercompany 

 

 

33

 

 

 —

 

 

5

 

 

(38)

 

 

 —

 

Interest expense - intercompany 

 

 

(3)

 

 

 —

 

 

(35)

 

 

38

 

 

 —

 

Interest expense, net 

 

 

(77)

 

 

(1)

 

 

(7)

 

 

 —

 

 

(85)

 

 

 

 

(75)

 

 

8

 

 

(7)

 

 

 —

 

 

(74)

 

Income (loss) before income and mining tax and other items 

 

 

(76)

 

 

115

 

 

384

 

 

 —

 

 

423

 

Income and mining tax benefit (expense)

 

 

25

 

 

(29)

 

 

(189)

 

 

 —

 

 

(193)

 

Equity income (loss) of affiliates 

 

 

234

 

 

(11)

 

 

23

 

 

(255)

 

 

(9)

 

Income (loss) from continuing operations 

 

 

183

 

 

75

 

 

218

 

 

(255)

 

 

221

 

Income (loss) from discontinued operations 

 

 

 —

 

 

 —

 

 

8

 

 

 —

 

 

8

 

Net income (loss)

 

 

183

 

 

75

 

 

226

 

 

(255)

 

 

229

 

Net loss (income) attributable to noncontrolling interests 

 

 

 —

 

 

 —

 

 

(77)

 

 

31

 

 

(46)

 

Net income (loss) attributable to Newmont stockholders

 

$

183

 

$

75

 

$

149

 

$

(224)

 

$

183

 

Comprehensive income (loss)

 

$

170

 

$

82

 

$

200

 

$

(237)

 

$

215

 

Comprehensive loss (income) attributable to noncontrolling interests

 

 

 —

 

 

 —

 

 

(71)

 

 

25

 

 

(46)

 

Comprehensive income (loss) attributable to Newmont stockholders

 

$

170

 

$

82

 

$

129

 

$

(212)

 

$

169

 

 


(1)

Excludes Depreciation and amortization and Reclamation and remediation.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended March 31, 2016

 

 

 

(Issuer)

 

(Guarantor)

 

(Non-Guarantor)

 

 

 

 

Newmont

 

 

 

Newmont

 

 

 

 

 

 

 

 

 

 

Mining

 

 

 

Mining

 

Newmont

 

Other

 

 

 

 

Corporation

 

Condensed Consolidating Statement of Cash Flows

    

Corporation

    

USA

    

Subsidiaries

    

Eliminations

    

Consolidated

 

Operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net cash provided by operating activities

 

$

757

 

$

40

 

$

555

 

$

(830)

 

$

522

 

Investing activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Additions to property, plant and mine development 

 

 

 —

 

 

(66)

 

 

(231)

 

 

 —

 

 

(297)

 

Sales of investments

 

 

 —

 

 

 —

 

 

184

 

 

 —

 

 

184

 

Proceeds from sale of other assets

 

 

 —

 

 

 —

 

 

6

 

 

 —

 

 

6

 

Other 

 

 

 —

 

 

 —

 

 

(4)

 

 

 —

 

 

(4)

 

Net cash used in investing activities 

 

 

 —

 

 

(66)

 

 

(45)

 

 

 —

 

 

(111)

 

Financing activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Repayment of debt

 

 

(498)

 

 

(1)

 

 

 —

 

 

 —

 

 

(499)

 

Net intercompany borrowings (repayments)

 

 

(246)

 

 

(320)

 

 

566

 

 

 —

 

 

 —

 

Funding from noncontrolling interests

 

 

 —

 

 

 —

 

 

12

 

 

 —

 

 

12

 

Dividends paid to noncontrolling interests

 

 

 —

 

 

 —

 

 

(146)

 

 

 —

 

 

(146)

 

Dividends paid to common stockholders 

 

 

(13)

 

 

(830)

 

 

 —

 

 

830

 

 

(13)

 

(Increase) decrease in restricted cash

 

 

 —

 

 

 —

 

 

(91)

 

 

 —

 

 

(91)

 

Other 

 

 

 —

 

 

 —

 

 

(1)

 

 

 —

 

 

(1)

 

Net cash used in financing activities 

 

 

(757)

 

 

(1,151)

 

 

340

 

 

830

 

 

(738)

 

Effect of exchange rate changes on cash 

 

 

 —

 

 

 —

 

 

6

 

 

 —

 

 

6

 

Net change in cash and cash equivalents 

 

 

 —

 

 

(1,177)

 

 

856

 

 

 —

 

 

(321)

 

Cash and cash equivalents at beginning of period 

 

 

 —

 

 

1,181

 

 

1,601

 

 

 —

 

 

2,782

 

Cash and cash equivalents at end of period 

 

$

 —

 

$

4

 

$

2,457

 

$

 —

 

$

2,461

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended March 31, 2015

 

 

 

(Issuer)

 

(Guarantor)

 

(Non-Guarantor)

 

 

 

 

Newmont

 

 

 

Newmont

 

 

 

 

 

 

 

 

 

 

Mining

 

 

 

Mining

 

Newmont

 

Other

 

 

 

 

Corporation

 

Condensed Consolidating Statement of Cash Flows

    

Corporation

    

USA

    

Subsidiaries

    

Eliminations

    

Consolidated

 

Operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net cash provided by operating activities

 

$

102

 

$

28

 

$

495

 

$

 —

 

$

625

 

Investing activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Additions to property, plant and mine development 

 

 

 —

 

 

(81)

 

 

(203)

 

 

 —

 

 

(284)

 

Sales of investments

 

 

 —

 

 

25

 

 

4

 

 

 —

 

 

29

 

Proceeds from sale of other assets

 

 

 —

 

 

6

 

 

38

 

 

 —

 

 

44

 

Other 

 

 

 —

 

 

 —

 

 

(3)

 

 

 —

 

 

(3)

 

Net cash used in investing activities 

 

 

 —

 

 

(50)

 

 

(164)

 

 

 —

 

 

(214)

 

Financing activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Repayment of debt

 

 

(200)

 

 

 —

 

 

(5)

 

 

 —

 

 

(205)

 

Net intercompany borrowings (repayments)

 

 

112

 

 

(20)

 

 

(92)

 

 

 —

 

 

 —

 

Sale of noncontrolling interests

 

 

 —

 

 

3

 

 

34

 

 

 —

 

 

37

 

Funding from noncontrolling interests

 

 

 —

 

 

 —

 

 

47

 

 

 —

 

 

47

 

Dividends paid to noncontrolling interests

 

 

 —

 

 

 —

 

 

(3)

 

 

 —

 

 

(3)

 

Dividends paid to common stockholders 

 

 

(12)

 

 

 —

 

 

 —

 

 

 —

 

 

(12)

 

(Increase) decrease in restricted cash

 

 

 —

 

 

1

 

 

(56)

 

 

 —

 

 

(55)

 

Other 

 

 

(2)

 

 

 —

 

 

(3)

 

 

 —

 

 

(5)

 

Net cash used in financing activities 

 

 

(102)

 

 

(16)

 

 

(78)

 

 

 —

 

 

(196)

 

Effect of exchange rate changes on cash 

 

 

 —

 

 

 —

 

 

(20)

 

 

 —

 

 

(20)

 

Net change in cash and cash equivalents 

 

 

 —

 

 

(38)

 

 

233

 

 

 —

 

 

195

 

Cash and cash equivalents at beginning of period 

 

 

 —

 

 

1,097

 

 

1,306

 

 

 —

 

 

2,403

 

Cash and cash equivalents at end of period 

 

$

 —

 

$

1,059

 

$

1,539

 

$

 —

 

$

2,598

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

At March 31, 2016

 

 

 

(Issuer)

 

(Guarantor)

 

(Non-Guarantor)

 

 

 

 

Newmont

 

 

 

Newmont

 

 

 

 

 

 

 

 

 

 

Mining

 

 

 

Mining

 

Newmont

 

Other

 

 

 

Corporation

 

Condensed Consolidating Balance Sheet

    

Corporation

    

USA

    

Subsidiaries

    

Eliminations

    

Consolidated

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents 

 

$

 —

 

$

4

 

$

2,457

 

$

 —

 

$

2,461

 

Trade receivables 

 

 

 —

 

 

36

 

 

237

 

 

 —

 

 

273

 

Other accounts receivables

 

 

 —

 

 

8

 

 

214

 

 

 —

 

 

222

 

Intercompany receivable

 

 

4,904

 

 

5,392

 

 

9,180

 

 

(19,476)

 

 

 —

 

Investments

 

 

 —

 

 

 —

 

 

27

 

 

 —

 

 

27

 

Inventories 

 

 

 —

 

 

150

 

 

560

 

 

 —

 

 

710

 

Stockpiles and ore on leach pads 

 

 

 —

 

 

218

 

 

646

 

 

 —

 

 

864

 

Other current assets

 

 

 —

 

 

40

 

 

183

 

 

 —

 

 

223

 

Current assets 

 

 

4,904

 

 

5,848

 

 

13,504

 

 

(19,476)

 

 

4,780

 

Property, plant and mine development, net 

 

 

25

 

 

3,184

 

 

11,111

 

 

(36)

 

 

14,284

 

Investments 

 

 

 —

 

 

15

 

 

225

 

 

 —

 

 

240

 

Investments in subsidiaries 

 

 

14,472

 

 

1,576

 

 

 —

 

 

(16,048)

 

 

 —

 

Stockpiles and ore on leach pads 

 

 

 —

 

 

619

 

 

2,402

 

 

 —

 

 

3,021

 

Deferred income tax assets 

 

 

297

 

 

524

 

 

1,202

 

 

(490)

 

 

1,533

 

Non-current intercompany receivable

 

 

1,734

 

 

498

 

 

110

 

 

(2,342)

 

 

 —

 

Other non-current assets 

 

 

 —

 

 

223

 

 

472

 

 

 —

 

 

695

 

Total assets 

 

$

21,432

 

$

12,487

 

$

29,026

 

$

(38,392)

 

$

24,553

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Debt 

 

$

 —

 

$

3

 

$

332

 

$

 —

 

$

335

 

Accounts payable 

 

 

 —

 

 

60

 

 

307

 

 

 —

 

 

367

 

Intercompany payable

 

 

4,582

 

 

4,694

 

 

10,200

 

 

(19,476)

 

 

 —

 

Employee-related benefits 

 

 

 —

 

 

71

 

 

125

 

 

 —

 

 

196

 

Income and mining taxes 

 

 

 —

 

 

 —

 

 

75

 

 

 —

 

 

75

 

Other current liabilities 

 

 

67

 

 

101

 

 

317

 

 

 —

 

 

485

 

Current liabilities 

 

 

4,649

 

 

4,929

 

 

11,356

 

 

(19,476)

 

 

1,458

 

Debt 

 

 

5,353

 

 

6

 

 

10

 

 

 —

 

 

5,369

 

Reclamation and remediation liabilities 

 

 

 —

 

 

235

 

 

1,586

 

 

 —

 

 

1,821

 

Deferred income tax liabilities 

 

 

 —

 

 

86

 

 

1,269

 

 

(490)

 

 

865

 

Employee-related benefits 

 

 

 —

 

 

287

 

 

167

 

 

 —

 

 

454

 

Non-current intercompany payable

 

 

81

 

 

 —

 

 

2,297

 

 

(2,378)

 

 

 —

 

Other non-current liabilities 

 

 

 —

 

 

35

 

 

298

 

 

 —

 

 

333

 

Total liabilities 

 

 

10,083

 

 

5,578

 

 

16,983

 

 

(22,344)

 

 

10,300

 

Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Newmont stockholders’ equity 

 

 

11,349

 

 

6,909

 

 

9,139

 

 

(16,048)

 

 

11,349

 

Noncontrolling interests 

 

 

 —

 

 

 —

 

 

2,904

 

 

 —

 

 

2,904

 

Total equity

 

 

11,349

 

 

6,909

 

 

12,043

 

 

(16,048)

 

 

14,253

 

Total liabilities and equity

 

$

21,432

 

$

12,487

 

$

29,026

 

$

(38,392)

 

$

24,553

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

At December 31, 2015

 

 

 

(Issuer)

 

(Guarantor)

 

(Non-Guarantor)

 

 

 

Newmont

 

 

 

Newmont

 

 

 

 

 

 

 

Mining

 

 

 

Mining

 

Newmont

 

Other

 

 

 

Corporation

 

Condensed Consolidating Balance Sheet

    

Corporation

    

USA

    

Subsidiaries

    

Eliminations

    

Consolidated

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents 

 

$

 —

 

$

1,181

 

$

1,601

 

$

 —

 

$

2,782

 

Trade receivables 

 

 

 —

 

 

31

 

 

229

 

 

 —

 

 

260

 

Other accounts receivables

 

 

 —

 

 

 —

 

 

185

 

 

 —

 

 

185

 

Intercompany receivable

 

 

4,587

 

 

6,212

 

 

8,101

 

 

(18,900)

 

 

 —

 

Investments

 

 

 —

 

 

 —

 

 

19

 

 

 —

 

 

19

 

Inventories 

 

 

 —

 

 

158

 

 

552

 

 

 —

 

 

710

 

Stockpiles and ore on leach pads 

 

 

 —

 

 

201

 

 

695

 

 

 —

 

 

896

 

Other current assets

 

 

 —

 

 

53

 

 

78

 

 

 —

 

 

131

 

Current assets 

 

 

4,587

 

 

7,836

 

 

11,460

 

 

(18,900)

 

 

4,983

 

Property, plant and mine development, net 

 

 

26

 

 

3,179

 

 

11,136

 

 

(38)

 

 

14,303

 

Investments 

 

 

 —

 

 

15

 

 

387

 

 

 —

 

 

402

 

Investments in subsidiaries 

 

 

15,650

 

 

3,886

 

 

2,820

 

 

(22,356)

 

 

 —

 

Stockpiles and ore on leach pads 

 

 

 —

 

 

621

 

 

2,379

 

 

 —

 

 

3,000

 

Deferred income tax assets 

 

 

223

 

 

757

 

 

1,228

 

 

(490)

 

 

1,718

 

Non-current intercompany receivable

 

 

1,742

 

 

434

 

 

108

 

 

(2,284)

 

 

 —

 

Other non-current assets 

 

 

 —

 

 

253

 

 

477

 

 

 —

 

 

730

 

Total assets 

 

$

22,228

 

$

16,981

 

$

29,995

 

$

(44,068)

 

$

25,136

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Debt 

 

$

 —

 

$

3

 

$

146

 

$

 —

 

$

149

 

Accounts payable 

 

 

 —

 

 

78

 

 

318

 

 

 —

 

 

396

 

Intercompany payable

 

 

4,888

 

 

5,495

 

 

8,517

 

 

(18,900)

 

 

 —

 

Employee-related benefits 

 

 

 —

 

 

136

 

 

157

 

 

 —

 

 

293

 

Income and mining taxes 

 

 

 —

 

 

 —

 

 

38

 

 

 —

 

 

38

 

Other current liabilities 

 

 

70

 

 

133

 

 

337

 

 

 —

 

 

540

 

Current liabilities 

 

 

4,958

 

 

5,845

 

 

9,513

 

 

(18,900)

 

 

1,416

 

Debt 

 

 

5,839

 

 

7

 

 

195

 

 

 —

 

 

6,041

 

Reclamation and remediation liabilities 

 

 

 —

 

 

231

 

 

1,569

 

 

 —

 

 

1,800

 

Deferred income tax liabilities 

 

 

 —

 

 

85

 

 

1,245

 

 

(490)

 

 

840

 

Employee-related benefits 

 

 

 —

 

 

283

 

 

154

 

 

 —

 

 

437

 

Non-current intercompany payable

 

 

81

 

 

 —

 

 

2,241

 

 

(2,322)

 

 

 —

 

Other non-current liabilities 

 

 

 —

 

 

37

 

 

273

 

 

 —

 

 

310

 

Total liabilities 

 

 

10,878

 

 

6,488

 

 

15,190

 

 

(21,712)

 

 

10,844

 

Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Newmont stockholders’ equity 

 

 

11,350

 

 

10,493

 

 

10,202

 

 

(20,695)

 

 

11,350

 

Noncontrolling interests 

 

 

 —

 

 

 —

 

 

4,603

 

 

(1,661)

 

 

2,942

 

Total equity

 

 

11,350

 

 

10,493

 

 

14,805

 

 

(22,356)

 

 

14,292

 

Total liabilities and equity

 

$

22,228

 

$

16,981

 

$

29,995

 

$

(44,068)

 

$

25,136

 

 

BASIS OF PRESENTATION - Reclassifications (Details) (Reclassified adjustment, USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2015
Other expense, net
 
Regional administration costs
$ (14)
Community development costs
(8)
General and administrative
 
Regional administration costs
14 
Costs applicable to sales and General and administrative
 
Community development costs
$ 8 
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Risks and Uncertainties (Details) (USD $)
In Millions, unless otherwise specified
1 Months Ended
Sep. 30, 2014
Mar. 31, 2016
Dec. 31, 2015
Risks and Uncertainties
 
 
 
Total Assets
 
$ 24,553 
$ 25,136 
Minera Yanacocha S.R.L.
 
 
 
Risks and Uncertainties
 
 
 
Ownership/Economic interest in subsidiaries
 
51.35% 
 
Batu Hijau |
Copper concentrate export permit
 
 
 
Risks and Uncertainties
 
 
 
Contract term
6 months 
 
 
Total Assets
 
3,726 
3,483 
Conga |
Minera Yanacocha S.R.L. |
Political and financial results contingencies
 
 
 
Risks and Uncertainties
 
 
 
Ownership/Economic interest in subsidiaries
 
51.35% 
 
Total Assets
 
$ 1,674 
$ 1,678 
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Recently Issued Accounting Pronouncements (Details) (USD $)
In Millions, unless otherwise specified
Mar. 31, 2016
Dec. 31, 2015
Recently Adopted Accounting Pronouncements
 
 
Other non-current assets
$ 695 
$ 730 
Debt (non-current)
5,369 
6,041 
ASU No. 2015-03 - Debt issuance costs
 
 
Recently Adopted Accounting Pronouncements
 
 
Other non-current assets
 
730 
Debt (non-current)
 
6,041 
ASU No. 2015-03 - Debt issuance costs |
Reclassified
 
 
Recently Adopted Accounting Pronouncements
 
 
Other non-current assets
 
(46)
Debt (non-current)
 
(46)
ASU No. 2015-03 - Debt issuance costs |
As Reported
 
 
Recently Adopted Accounting Pronouncements
 
 
Other non-current assets
 
776 
Debt (non-current)
 
$ 6,087 
BUSINESS ACQUISITION - Consideration (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended 0 Months Ended 0 Months Ended
Dec. 31, 2015
Aug. 3, 2015
Cripple Creek & Victor mine
Jun. 8, 2015
Cripple Creek & Victor mine
Aug. 3, 2015
Smelter Return Royalty
Cripple Creek & Victor mine
Mar. 31, 2016
Smelter Return Royalty
Cripple Creek & Victor mine
Acquisition price
 
 
 
 
 
Ownership interest acquired
 
 
100.00% 
 
 
Net proceeds from common stock issuance
$ 675 
 
 
 
 
Acquisition price
 
821 
 
 
 
Net smelter return royalty (as a percent)
 
 
 
2.50% 
 
Fair value of net smelter return royalty
 
 
 
 
$ 0 
SEGMENT INFORMATION - Financial Information Table (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2016
segment
Mar. 31, 2015
Segment Information
 
 
Number of operating segments
 
Sales
$ 2,032 
$ 1,972 
Costs applicable to sales
1,081 1
1,027 1
Depreciation and amortization
322 
289 
Advanced Projects, Research and Development, and Exploration
58 
61 
Pre-Tax Income (Loss)
490 
423 
Capital Expenditures
273 
288 
Additional disclosures
 
 
Increase (decrease) in accrued capital expenditures
(24)
Consolidated capital expenditures on a cash basis
297 
284 
Corporate and other
 
 
Segment Information
 
 
Depreciation and amortization
Advanced Projects, Research and Development, and Exploration
12 
21 
Pre-Tax Income (Loss)
(36)
(161)
Capital Expenditures
North America |
Operating Segments
 
 
Segment Information
 
 
Sales
555 
520 
Costs applicable to sales
353 
303 
Depreciation and amortization
100 
74 
Advanced Projects, Research and Development, and Exploration
15 
11 
Pre-Tax Income (Loss)
75 
128 
Capital Expenditures
103 
89 
North America |
Operating Segments |
Carlin
 
 
Segment Information
 
 
Sales
246 
276 
Costs applicable to sales
189 
178 
Depreciation and amortization
49 
45 
Advanced Projects, Research and Development, and Exploration
Pre-Tax Income (Loss)
47 
Capital Expenditures
36 
57 
North America |
Operating Segments |
Phoenix
 
 
Segment Information
 
 
Sales
85 
95 
Costs applicable to sales
71 
66 
Depreciation and amortization
20 
16 
Advanced Projects, Research and Development, and Exploration
 
Pre-Tax Income (Loss)
(11)
Capital Expenditures
North America |
Operating Segments |
Phoenix |
Gold
 
 
Segment Information
 
 
Sales
64 
61 
Costs applicable to sales
49 
41 
Depreciation and amortization
15 
10 
North America |
Operating Segments |
Phoenix |
Copper
 
 
Segment Information
 
 
Sales
21 
34 
Costs applicable to sales
22 
25 
Depreciation and amortization
North America |
Operating Segments |
Twin Creeks
 
 
Segment Information
 
 
Sales
159 
149 
Costs applicable to sales
60 
59 
Depreciation and amortization
13 
13 
Advanced Projects, Research and Development, and Exploration
Pre-Tax Income (Loss)
83 
74 
Capital Expenditures
19 
North America |
Operating Segments |
Cripple Creek & Victor mine
 
 
Segment Information
 
 
Sales
65 
 
Costs applicable to sales
33 
 
Depreciation and amortization
18 
 
Advanced Projects, Research and Development, and Exploration
 
Pre-Tax Income (Loss)
10 
 
Capital Expenditures
21 
 
North America |
Operating Segments |
Other North America
 
 
Segment Information
 
 
Advanced Projects, Research and Development, and Exploration
Pre-Tax Income (Loss)
(9)
(1)
Capital Expenditures
36 
South America |
Operating Segments
 
 
Segment Information
 
 
Sales
211 
301 
Costs applicable to sales
128 
115 
Depreciation and amortization
73 
74 
Advanced Projects, Research and Development, and Exploration
18 
17 
Pre-Tax Income (Loss)
(26)
79 
Capital Expenditures
96 
101 
South America |
Operating Segments |
Yanacocha
 
 
Segment Information
 
 
Sales
211 
301 
Costs applicable to sales
128 
115 
Depreciation and amortization
69 
71 
Advanced Projects, Research and Development, and Exploration
Pre-Tax Income (Loss)
(11)
94 
Capital Expenditures
14 
15 
South America |
Operating Segments |
Merian
 
 
Segment Information
 
 
Depreciation and amortization
 
Advanced Projects, Research and Development, and Exploration
Pre-Tax Income (Loss)
(4)
(2)
Capital Expenditures
82 
86 
South America |
Operating Segments |
Other South America
 
 
Segment Information
 
 
Depreciation and amortization
Advanced Projects, Research and Development, and Exploration
10 
Pre-Tax Income (Loss)
(11)
(13)
Asia Pacific |
Operating Segments
 
 
Segment Information
 
 
Sales
1,030 
890 
Costs applicable to sales
488 
507 
Depreciation and amortization
102 
100 
Advanced Projects, Research and Development, and Exploration
Pre-Tax Income (Loss)
412 
265 
Capital Expenditures
48 
60 
Asia Pacific |
Operating Segments |
Boddington
 
 
Segment Information
 
 
Sales
234 
286 
Costs applicable to sales
134 
196 
Depreciation and amortization
28 
37 
Advanced Projects, Research and Development, and Exploration
 
Pre-Tax Income (Loss)
64 
58 
Capital Expenditures
11 
11 
Asia Pacific |
Operating Segments |
Boddington |
Gold
 
 
Segment Information
 
 
Sales
204 
239 
Costs applicable to sales
111 
157 
Depreciation and amortization
23 
30 
Asia Pacific |
Operating Segments |
Boddington |
Copper
 
 
Segment Information
 
 
Sales
30 
47 
Costs applicable to sales
23 
39 
Depreciation and amortization
Asia Pacific |
Operating Segments |
Tanami
 
 
Segment Information
 
 
Sales
120 
120 
Costs applicable to sales
59 
58 
Depreciation and amortization
19 
19 
Advanced Projects, Research and Development, and Exploration
Pre-Tax Income (Loss)
38 
45 
Capital Expenditures
24 
16 
Asia Pacific |
Operating Segments |
Waihi
 
 
Segment Information
 
 
Sales
 
50 
Costs applicable to sales
 
19 
Depreciation and amortization
 
Advanced Projects, Research and Development, and Exploration
 
Pre-Tax Income (Loss)
 
25 
Capital Expenditures
 
Asia Pacific |
Operating Segments |
Kalgoorlie
 
 
Segment Information
 
 
Sales
106 
74 
Costs applicable to sales
65 
60 
Depreciation and amortization
Advanced Projects, Research and Development, and Exploration
 
Pre-Tax Income (Loss)
33 
11 
Capital Expenditures
Asia Pacific |
Operating Segments |
Batu Hijau
 
 
Segment Information
 
 
Sales
570 
360 
Costs applicable to sales
230 
174 
Depreciation and amortization
46 
30 
Advanced Projects, Research and Development, and Exploration
Pre-Tax Income (Loss)
282 
135 
Capital Expenditures
10 
20 
Asia Pacific |
Operating Segments |
Batu Hijau |
Gold
 
 
Segment Information
 
 
Sales
283 
114 
Costs applicable to sales
100 
51 
Depreciation and amortization
20 
Asia Pacific |
Operating Segments |
Batu Hijau |
Copper
 
 
Segment Information
 
 
Sales
287 
246 
Costs applicable to sales
130 
123 
Depreciation and amortization
26 
21 
Asia Pacific |
Operating Segments |
Other Asia Pacific
 
 
Segment Information
 
 
Depreciation and amortization
Advanced Projects, Research and Development, and Exploration
Pre-Tax Income (Loss)
(5)
(9)
Africa |
Operating Segments
 
 
Segment Information
 
 
Sales
236 
261 
Costs applicable to sales
112 
102 
Depreciation and amortization
44 
37 
Advanced Projects, Research and Development, and Exploration
Pre-Tax Income (Loss)
65 
112 
Capital Expenditures
24 
32 
Africa |
Operating Segments |
Ahafo
 
 
Segment Information
 
 
Sales
101 
121 
Costs applicable to sales
57 
56 
Depreciation and amortization
15 
15 
Advanced Projects, Research and Development, and Exploration
Pre-Tax Income (Loss)
20 
44 
Capital Expenditures
17 
21 
Africa |
Operating Segments |
Akyem
 
 
Segment Information
 
 
Sales
135 
140 
Costs applicable to sales
55 
46 
Depreciation and amortization
29 
22 
Advanced Projects, Research and Development, and Exploration
 
Pre-Tax Income (Loss)
47 
71 
Capital Expenditures
11 
Africa |
Operating Segments |
Other Africa
 
 
Segment Information
 
 
Advanced Projects, Research and Development, and Exploration
Pre-Tax Income (Loss)
$ (2)
$ (3)
RECLAMATION AND REMEDIATION - Expense (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2016
Mar. 31, 2015
RECLAMATION AND REMEDIATION
 
 
Reclamation accretion
$ 23 
$ 21 
Remediation
Remediation Accretion
Total remediation expense
Reclamation and remediation expense
$ 25 
$ 23 
RECLAMATION AND REMEDIATION - Reconciliation of Obligations (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Change in reclamation liability
 
 
Balance at beginning of period
$ 1,553 
$ 1,497 
Additions, changes in estimates and other
(2)
Payments and other
(3)
(3)
Accretion expense
23 
21 
Balance at end of period
1,575 
1,513 
Change in remediation liability
 
 
Balance at beginning of period
318 
192 
Additions, changes in estimates and other
 
(1)
Payments and other
(3)
(21)
Accretion Expense
Balance at end of period
$ 316 
$ 171 
RECLAMATION AND REMEDIATION - Additional Information (Details) (USD $)
In Millions, unless otherwise specified
Mar. 31, 2016
Dec. 31, 2015
Mar. 31, 2015
Dec. 31, 2014
Reclamation and remediation liability
 
 
 
 
Reclamation obligations
$ 1,575 
$ 1,553 
$ 1,513 
$ 1,497 
Environmental remediation obligations
316 
318 
171 
192 
Other current liabilities
 
 
 
 
Reclamation and remediation liability
 
 
 
 
Reclamation obligation, current
36 
37 
 
 
Remediation obligation, current
34 
34 
 
 
Other non-current assets |
Cash and cash equivalents
 
 
 
 
Reclamation and remediation liability
 
 
 
 
Asset retirement obligation restricted assets
88 
65 
 
 
Batu Hijau |
Other current assets |
Cash and cash equivalents
 
 
 
 
Reclamation and remediation liability
 
 
 
 
Asset retirement obligation restricted assets
15 
15 
 
 
Batu Hijau |
Other non-current assets |
Cash and cash equivalents
 
 
 
 
Reclamation and remediation liability
 
 
 
 
Asset retirement obligation restricted assets
23 
 
 
 
Midnite Mine |
Other non-current assets |
Cash and cash equivalents
 
 
 
 
Reclamation and remediation liability
 
 
 
 
Asset retirement obligation restricted assets
43 
43 
 
 
Ahafo and Akyem Mines |
Other non-current assets |
Cash and cash equivalents
 
 
 
 
Reclamation and remediation liability
 
 
 
 
Asset retirement obligation restricted assets
13 
13 
 
 
Con Mine |
Other non-current assets |
Cash and cash equivalents
 
 
 
 
Reclamation and remediation liability
 
 
 
 
Asset retirement obligation restricted assets
 
 
San Jose Reservoir |
Investments, Noncurrent |
Marketable equity securities
 
 
 
 
Reclamation and remediation liability
 
 
 
 
Asset retirement obligation restricted assets
$ 19 
$ 20 
 
 
INCOME AND MINING TAXES - Tax Expense Reconciliation (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Reconciling item, percentage
 
 
Tax at statutory rate
35.00% 
35.00% 
Percentage depletion
(9.00%)
(3.00%)
Change in valuation allowance on deferred tax assets
39.00% 
10.00% 
Mining and other taxes
5.00% 
2.00% 
Tax impact on sale of assets
(7.00%)
 
Effect of foreign earnings, net of credits
2.00% 
1.00% 
Other
1.00% 
1.00% 
Income and mining tax expense (benefit)
66.00% 
46.00% 
Reconciling item, amount
 
 
Income (loss) before income and mining tax and other items
$ 490 
$ 423 
Income tax benefit (expense) at statutory rate
(172)
(148)
Percentage depletion
42 
15 
Change in valuation allowance on deferred tax assets
(194)
(44)
Mining and other taxes
(23)
(8)
Tax impact on sale of assets
35 
 
Effect of foreign earnings, net of credits
(10)
(3)
Other
(2)
(5)
Income and mining tax benefit (expense)
$ (324)
$ (193)
INCOME AND MINING TAXES - Unrecognized Tax Benefits (Details) (USD $)
In Millions, unless otherwise specified
Mar. 31, 2016
Unrecognized Tax Benefits, other information
 
Total unrecognized tax liability
$ 79 
Unrecognized tax benefits affecting effective tax rate
37 
Minimum
 
Unrecognized Tax Benefits, other information
 
Significant decrease in unrecognized tax benefits is reasonably possible, estimated range of change
55 
Maximum
 
Unrecognized Tax Benefits, other information
 
Significant decrease in unrecognized tax benefits is reasonably possible, estimated range of change
$ 60 
NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS - Net Income (Loss) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2016
Mar. 31, 2015
NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS
 
 
Net income (loss) attributable to noncontrolling interests
$ 83 
$ 46 
Minera Yanacocha S.R.L.
 
 
NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS
 
 
Net income (loss) attributable to noncontrolling interests
(11)
PTNNT - Batu Hijau
 
 
NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS
 
 
Net income (loss) attributable to noncontrolling interests
95 
45 
TMAC
 
 
NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS
 
 
Net income (loss) attributable to noncontrolling interests
 
(6)
Merian
 
 
NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS
 
 
Net income (loss) attributable to noncontrolling interests
(1)
 
Other
 
 
NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS
 
 
Net income (loss) attributable to noncontrolling interests
 
$ 2 
NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS - Ownership (Details)
Mar. 31, 2016
Minera Yanacocha S.R.L.
 
NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS
 
Ownership/Economic interest in subsidiaries
51.35% 
Minera Yanacocha S.R.L. |
Compania de Minas Buenaventura SAA
 
NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS
 
Noncontrolling interest, ownership percentage by noncontrolling owners
43.65% 
Minera Yanacocha S.R.L. |
International Finance Corporation
 
NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS
 
Noncontrolling interest, ownership percentage by noncontrolling owners
5.00% 
PTNNT - Batu Hijau |
Primary Beneficiary
 
NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS
 
Ownership/Economic interest in subsidiaries
48.50% 
TMAC
 
NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS
 
Newmont equity interest ownership (as a percent)
29.37% 
Merian |
Primary Beneficiary
 
NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS
 
Ownership/Economic interest in subsidiaries
75.00% 
Surgold |
Primary Beneficiary
 
NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS
 
Ownership/Economic interest in subsidiaries
100.00% 
NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS - Classified Assets and Liabilities of Consolidated VIEs (Details) (Primary Beneficiary, USD $)
In Millions, unless otherwise specified
Mar. 31, 2016
Dec. 31, 2015
PTNNT - Batu Hijau
 
 
NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS
 
 
Current assets
$ 1,273 
$ 960 
Total assets
3,726 
3,483 
Current liabilities
511 
292 
Total liabilities
1,113 
1,054 
PTNNT - Batu Hijau |
Cash and cash equivalents
 
 
NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS
 
 
Current assets
680 
419 
PTNNT - Batu Hijau |
Trade receivables
 
 
NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS
 
 
Current assets
147 
179 
PTNNT - Batu Hijau |
Other current assets
 
 
NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS
 
 
Current assets
446 
362 
PTNNT - Batu Hijau |
Property Plant And Mine Development
 
 
NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS
 
 
Non-current assets
1,072 
1,103 
PTNNT - Batu Hijau |
Stockpiles and ore on leach pads
 
 
NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS
 
 
Non-current assets
1,064 
1,104 
PTNNT - Batu Hijau |
Other non-current assets
 
 
NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS
 
 
Non-current assets
317 
316 
PTNNT - Batu Hijau |
Debt, current
 
 
NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS
 
 
Current liabilities
327 
140 
PTNNT - Batu Hijau |
Accounts payable
 
 
NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS
 
 
Current liabilities
59 
81 
PTNNT - Batu Hijau |
Other current liabilities
 
 
NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS
 
 
Current liabilities
125 
71 
PTNNT - Batu Hijau |
Debt, noncurrent
 
 
NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS
 
 
Non-current liabilities
187 
PTNNT - Batu Hijau |
Reclamation and remediation liabilities
 
 
NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS
 
 
Non-current liabilities
249 
245 
PTNNT - Batu Hijau |
Other non-current liabilities
 
 
NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS
 
 
Non-current liabilities
351 
330 
Merian
 
 
NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS
 
 
Current assets
65 
39 
Total assets
706 
603 
Current liabilities
38 
35 
Total liabilities
46 
43 
Merian |
Cash and cash equivalents
 
 
NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS
 
 
Current assets
18 
16 
Merian |
Other current assets
 
 
NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS
 
 
Current assets
47 
23 
Merian |
Property Plant And Mine Development
 
 
NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS
 
 
Non-current assets
641 
564 
Merian |
Other current liabilities
 
 
NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS
 
 
Current liabilities
38 
35 
Merian |
Reclamation and remediation liabilities
 
 
NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS
 
 
Non-current liabilities
$ 8 
$ 8 
INCOME (LOSS) PER COMMON SHARE - Basic and Diluted (Details) (USD $)
In Millions, except Per Share data, unless otherwise specified
3 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Net income (loss) attributable to Newmont stockholders:
 
 
Continuing operations
$ 78 
$ 175 
Discontinued operations
(26)
Net income (loss) attributable to Newmont stockholders
$ 52 
$ 183 
Weighted average common shares (millions):
 
 
Basic
530 
499 
Effect of employee stock-based awards
Diluted
531 
500 
Basic:
 
 
Continuing operations
$ 0.15 
$ 0.35 
Discontinued operations
$ (0.05)
$ 0.02 
Net income (loss) per common share, basic
$ 0.10 
$ 0.37 
Diluted:
 
 
Continuing operations
$ 0.15 
$ 0.35 
Discontinued operations
$ (0.05)
$ 0.02 
Net income (loss) per common share, diluted
$ 0.10 
$ 0.37 
INCOME (LOSS) PER COMMON SHARE - Anti-dilutive Shares (Details) (USD $)
3 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Computation of diluted weighted average common shares
 
 
Convertible debt, number of additional shares included in diluted weighted-average shares
 
Options
 
 
Antidilutive securities
 
 
Anti-dilutive shares
2,000,000 
3,000,000 
Options to purchase common shares average exercise price (in dollars per share)
$ 52 
$ 48 
EMPLOYEE PENSION AND OTHER BENEFIT PLANS - Net Periodic Pension and Other Benefit Costs (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Pension Plans
 
 
Pension and other post-retirement costs, net
 
 
Service cost
$ 7 
$ 8 
Interest cost
12 
11 
Expected return on plan assets
(14)
(15)
Amortization, net
Total pension cost
11 
11 
Other Benefit Plans
 
 
Pension and other post-retirement costs, net
 
 
Service cost
 
Interest cost
Amortization, net
(1)
 
Total pension cost
 
$ 3 
STOCK-BASED COMPENSATION - Compensation Costs (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Stock-based compensation:
 
 
Stock-based compensation
$ 16 
$ 20 
Performance leveraged stock units
 
 
Stock-based compensation:
 
 
Stock-based compensation
10 
Restricted stock units
 
 
Stock-based compensation:
 
 
Stock-based compensation
Strategic stock units
 
 
Stock-based compensation:
 
 
Stock-based compensation
$ 2 
$ 2 
FAIR VALUE ACCOUNTING - Fair Value on a Recurring Basis (Details) (USD $)
In Millions, unless otherwise specified
Mar. 31, 2016
Dec. 31, 2015
Recurring
 
 
Assets:
 
 
Cash and cash equivalents
$ 2,461 
$ 2,782 
Restricted assets
223 
132 
Trade receivable, net
 
178 
Assets
2,989 
3,319 
Liabilities:
 
 
Debt
5,625 
5,469 
Liabilities
5,865 
5,700 
Recurring |
Boddington Contingent Consideration
 
 
Liabilities:
 
 
Contingent consideration
10 
10 
Recurring |
Holt property royalty
 
 
Liabilities:
 
 
Royalty
164 
129 
Recurring |
Provisional copper and gold concentrate receivables
 
 
Assets:
 
 
Trade receivable, net
232 
 
Recurring |
Foreign exchange forward contracts
 
 
Liabilities:
 
 
Derivative instruments, net
41 
60 
Recurring |
Diesel forward contracts
 
 
Liabilities:
 
 
Derivative instruments, net
25 
32 
Recurring |
Level 1
 
 
Assets:
 
 
Cash and cash equivalents
2,461 
2,782 
Restricted assets
223 
132 
Trade receivable, net
 
178 
Assets
2,962 
3,294 
Recurring |
Level 1 |
Provisional copper and gold concentrate receivables
 
 
Assets:
 
 
Trade receivable, net
232 
 
Recurring |
Level 2
 
 
Liabilities:
 
 
Debt
5,625 
5,469 
Liabilities
5,691 
5,561 
Recurring |
Level 2 |
Foreign exchange forward contracts
 
 
Liabilities:
 
 
Derivative instruments, net
41 
60 
Recurring |
Level 2 |
Diesel forward contracts
 
 
Liabilities:
 
 
Derivative instruments, net
25 
32 
Recurring |
Level 3
 
 
Assets:
 
 
Assets
27 
25 
Liabilities:
 
 
Liabilities
174 
139 
Recurring |
Level 3 |
Boddington Contingent Consideration
 
 
Liabilities:
 
 
Contingent consideration
10 
10 
Recurring |
Level 3 |
Holt property royalty
 
 
Liabilities:
 
 
Royalty
164 
129 
Recurring |
Marketable equity securities |
Extractive industries
 
 
Assets:
 
 
Marketable securities
30 
186 
Recurring |
Marketable equity securities |
Extractive industries |
Level 1
 
 
Assets:
 
 
Marketable securities
30 
186 
Recurring |
Marketable equity securities |
Other industries
 
 
Assets:
 
 
Marketable securities
16 
16 
Recurring |
Marketable equity securities |
Other industries |
Level 1
 
 
Assets:
 
 
Marketable securities
16 
16 
Recurring |
Asset backed commercial paper
 
 
Assets:
 
 
Marketable securities
20 
18 
Recurring |
Asset backed commercial paper |
Level 3
 
 
Assets:
 
 
Marketable securities
20 
18 
Recurring |
Auction rate securities
 
 
Assets:
 
 
Marketable securities
Recurring |
Auction rate securities |
Level 3
 
 
Assets:
 
 
Marketable securities
Carrying value
 
 
Liabilities:
 
 
Debt
$ 5,682 
$ 6,167 
FAIR VALUE ACCOUNTING - Quantitative Information (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 12 Months Ended 3 Months Ended 12 Months Ended 3 Months Ended 12 Months Ended 3 Months Ended 12 Months Ended 3 Months Ended 12 Months Ended
Mar. 31, 2016
Dec. 31, 2015
Mar. 31, 2015
Dec. 31, 2014
Mar. 31, 2016
Boddington Contingent Consideration
Dec. 31, 2015
Boddington Contingent Consideration
Mar. 31, 2015
Boddington Contingent Consideration
Dec. 31, 2014
Boddington Contingent Consideration
Mar. 31, 2016
Holt property royalty
Dec. 31, 2015
Holt property royalty
Mar. 31, 2015
Holt property royalty
Dec. 31, 2014
Holt property royalty
Mar. 31, 2016
Auction rate securities
Dec. 31, 2015
Auction rate securities
Mar. 31, 2015
Auction rate securities
Dec. 31, 2014
Auction rate securities
Mar. 31, 2016
Asset backed commercial paper
Dec. 31, 2015
Asset backed commercial paper
Mar. 31, 2015
Asset backed commercial paper
Dec. 31, 2014
Asset backed commercial paper
Mar. 31, 2016
Level 3
Discounted Cash Flow
Auction rate securities
Mar. 31, 2016
Level 3
Discounted Cash Flow
Asset backed commercial paper
Dec. 31, 2015
Level 3
Risk-Adjusted Indicative Price
Auction rate securities
Dec. 31, 2015
Level 3
Risk-Adjusted Indicative Price
Asset backed commercial paper
Mar. 31, 2016
Level 3
Monte Carlo
Boddington Contingent Consideration
Dec. 31, 2015
Level 3
Monte Carlo
Boddington Contingent Consideration
Mar. 31, 2016
Level 3
Monte Carlo
Holt property royalty
Dec. 31, 2015
Level 3
Monte Carlo
Holt property royalty
Mar. 31, 2016
Level 3
Monte Carlo
Holt property royalty
Minimum
oz
Dec. 31, 2015
Level 3
Monte Carlo
Holt property royalty
Minimum
oz
Mar. 31, 2016
Level 3
Monte Carlo
Holt property royalty
Maximum
oz
Dec. 31, 2015
Level 3
Monte Carlo
Holt property royalty
Maximum
oz
Quantitative and Qualitative Information - Unobservable Inputs
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Contingent consideration, high end of range
 
 
 
 
$ 100 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Contingent consideration paid to date
 
 
 
 
72 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Financial assets, fair value
27 
25 
28 
30 
 
 
 
 
 
 
 
 
20 
18 
21 
24 
20 
18 
 
 
 
 
 
 
 
 
Financial liabilities, fair value
$ 174 
$ 139 
$ 174 
$ 189 
$ 10 
$ 10 
$ 10 
$ 10 
$ 164 
$ 129 
$ 164 
$ 179 
 
 
 
 
 
 
 
 
 
 
 
 
$ 10 
$ 10 
$ 164 
$ 129 
 
 
 
 
Recoverability Rate
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
85.00% 
90.00% 
85.00% 
90.00% 
 
 
 
 
 
 
 
 
Discount Rate
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
3.74% 
5.32% 
3.86% 
5.06% 
 
 
 
 
Short-term gold price
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1,183 
1,106 
1,183 
1,106 
 
 
 
 
Long-term gold price
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1,300 
1,300 
1,300 
1,300 
 
 
 
 
Short-term copper price
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2.12 
2.22 
 
 
 
 
 
 
Long-term copper price
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
3.00 
3.00 
 
 
 
 
 
 
Long-term Australian to U.S. dollar exchange rate
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
0.80 
0.80 
 
 
 
 
 
 
Gold production scenarios (in 000's of ounces)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
381,000 
398,000 
1,620,000 
1,636,000 
FAIR VALUE ACCOUNTING - Changes in the Fair Value of Level 3 Financial Assets and Liabilities (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 3 Months Ended 3 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Mar. 31, 2016
Boddington Contingent Consideration
Dec. 31, 2015
Boddington Contingent Consideration
Mar. 31, 2015
Boddington Contingent Consideration
Dec. 31, 2014
Boddington Contingent Consideration
Mar. 31, 2016
Holt property royalty
Mar. 31, 2015
Holt property royalty
Mar. 31, 2015
Auction rate securities
Mar. 31, 2016
Auction rate securities
Dec. 31, 2015
Auction rate securities
Mar. 31, 2016
Asset backed commercial paper
Mar. 31, 2015
Asset backed commercial paper
Summary of changes in Level 3 financial assets
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance at beginning of period, assets
$ 25 
$ 30 
 
 
 
 
 
 
$ 6 
$ 7 
$ 7 
$ 18 
$ 24 
Revaluation
(2)
 
 
 
 
 
 
 
 
(3)
Balance at end of period, assets
27 
28 
 
 
 
 
 
 
20 
21 
Summary of changes in Level 3 financial liabilities
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance at beginning of period, liabilities
139 
189 
10 
10 
10 
10 
129 
179 
 
 
 
 
 
Settlements
(2)
(3)
 
 
 
 
(2)
(3)
 
 
 
 
 
Revaluation
37 
(12)
 
 
 
 
37 
(12)
 
 
 
 
 
Balance at end of period, liabilities
$ 174 
$ 174 
$ 10 
$ 10 
$ 10 
$ 10 
$ 164 
$ 164 
 
 
 
 
 
DERIVATIVE INSTRUMENTS - Foreign Currency Derivative Contracts Outstanding (Details) (Asia Pacific, Cash Flow Hedges, AUD, AUD $)
In Millions, unless otherwise specified
Mar. 31, 2016
Foreign exchange forward contracts
 
Derivative contracts
 
Derivative notional amount
$ 223 
Average rate
0.94 
Expected Maturity Date - 2016
 
Derivative contracts
 
Derivative notional amount
112 
Average rate
0.95 
Expected hedge ratio
12.00% 
Expected Maturity Date - 2017
 
Derivative contracts
 
Derivative notional amount
105 
Average rate
0.93 
Expected hedge ratio
8.00% 
Expected Maturity Date - 2018
 
Derivative contracts
 
Derivative notional amount
$ 6 
Average rate
0.92 
Expected hedge ratio
4.00% 
DERIVATIVE INSTRUMENTS - Diesel Derivative Contracts Outstanding (Details) (Cash Flow Hedges, North America)
3 Months Ended
Mar. 31, 2016
gal
Diesel forward contracts
 
Derivative contracts
 
Diesel gallons (millions)
28,000,000 
Average rate ($/gallon)
2.06 
Diesel forward contracts |
Maximum
 
Derivative contracts
 
Derivative, contract term
2 years 
Diesel forward contracts maturing in 2016
 
Derivative contracts
 
Diesel gallons (millions)
17,000,000 
Average rate ($/gallon)
2.22 
Expected hedge ratio
58.00% 
Diesel forward contracts maturing in 2017
 
Derivative contracts
 
Diesel gallons (millions)
11,000,000 
Average rate ($/gallon)
1.84 
Expected hedge ratio
38.00% 
DERIVATIVE INSTRUMENTS - Fair Values of Instruments Designated as Hedges (Details) (Cash Flow Hedges, Designated, USD $)
In Millions, unless otherwise specified
Mar. 31, 2016
Dec. 31, 2015
Other current liabilities
 
 
Derivative contracts
 
 
Fair Value of Derivative Instruments, Liabilities
$ 49 
$ 63 
Other current liabilities |
Foreign exchange forward contracts |
AUD
 
 
Derivative contracts
 
 
Fair Value of Derivative Instruments, Liabilities
27 
36 
Other current liabilities |
Diesel forward contracts
 
 
Derivative contracts
 
 
Fair Value of Derivative Instruments, Liabilities
22 
27 
Other non-current liabilities
 
 
Derivative contracts
 
 
Fair Value of Derivative Instruments, Liabilities
17 
29 
Other non-current liabilities |
Foreign exchange forward contracts |
AUD
 
 
Derivative contracts
 
 
Fair Value of Derivative Instruments, Liabilities
14 
24 
Other non-current liabilities |
Diesel forward contracts
 
 
Derivative contracts
 
 
Fair Value of Derivative Instruments, Liabilities
$ 3 
$ 5 
DERIVATIVE INSTRUMENTS - Location and Amount of Gains (Losses) Reported in Financial Statements (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Derivative contracts
 
 
Approximate loss amount to be reclassified from accumulated other comprehensive income (loss), net of tax to income
$ 48 
 
Cash Flow Hedges |
Foreign exchange forward contracts
 
 
Derivative contracts
 
 
Gain (loss) recognized in other comprehensive income
(27)
Gain (loss) reclassified from Accumulated other comprehensive income into income (effective portion)
(10)
(7)
Cash Flow Hedges |
Diesel forward contracts
 
 
Derivative contracts
 
 
Gain (loss) recognized in other comprehensive income
(2)
(5)
Gain (loss) reclassified from Accumulated other comprehensive income into income (effective portion)
(9)
(7)
Cash Flow Hedges |
Interest rate contracts
 
 
Derivative contracts
 
 
Gain (loss) reclassified from Accumulated other comprehensive income into income (effective portion)
(3)
(5)
Other income, net |
Cash Flow Hedges |
Diesel forward contracts
 
 
Derivative contracts
 
 
Gain (loss) reclassified from Accumulated other comprehensive income into income (ineffective portion)
 
$ 1 
DERIVATIVE INSTRUMENTS - Additional Information (Details)
3 Months Ended
Mar. 31, 2016
oz
Gold Contracts - Embedded Derivative
 
Provisional Gold and Copper Sales - Embedded derivatives
 
Provisional pricing quantity sales (in ounces or pounds)
227,000 
Average price, subject to final pricing (in USD per ounce or pound)
1,238 
Copper Contracts - Embedded Derivative
 
Provisional Gold and Copper Sales - Embedded derivatives
 
Provisional pricing quantity sales (in ounces or pounds)
194,000,000 
Average price, subject to final pricing (in USD per ounce or pound)
2.19 
INVESTMENTS - Marketable Securities - Amortized Cost/Fair Value (Details) (USD $)
In Millions, unless otherwise specified
Mar. 31, 2016
Dec. 31, 2015
Investments
 
 
Investments, Fair/Equity Basis
$ 240 
$ 402 
Current |
Marketable equity securities
 
 
Investments
 
 
Cost/Equity Basis
20 
19 
Unrealized Gain
Unrealized Loss
(1)
(2)
Fair/Equity Basis - Current Marketable Equity Securities
27 
19 
Current |
Marketable equity securities |
Gabriel Resources Ltd
 
 
Investments
 
 
Cost/Equity Basis
Unrealized Gain
 
Fair/Equity Basis - Current Marketable Equity Securities
Current |
Marketable equity securities |
Other Marketable Equity Securities
 
 
Investments
 
 
Cost/Equity Basis
15 
14 
Unrealized Gain
Unrealized Loss
(1)
(2)
Fair/Equity Basis - Current Marketable Equity Securities
20 
14 
Investments, Noncurrent
 
 
Investments
 
 
Other investments, at cost
Investments, Cost/Equity Basis
239 
317 
Unrealized Gain
86 
Unrealized Loss
(1)
(1)
Investments, Fair/Equity Basis
240 
402 
Investments, Noncurrent |
TMAC
 
 
Investments
 
 
Equity Method Investments
101 
101 
Investments, Noncurrent |
Minera La Zanja S.R.L.
 
 
Investments
 
 
Equity Method Investments
69 
71 
Investments, Noncurrent |
Novo Resources Corp
 
 
Investments
 
 
Equity Method Investments
15 
14 
Investments, Noncurrent |
Euronimba Ltd.
 
 
Investments
 
 
Equity Method Investments
Investments, Noncurrent |
Marketable equity securities
 
 
Investments
 
 
Cost/Equity Basis
18 
98 
Unrealized Gain
85 
Fair/Equity Basis - Long-Term Marketable Securities
19 
183 
Investments, Noncurrent |
Marketable equity securities |
Regis Resources Ltd.
 
 
Investments
 
 
Cost/Equity Basis
 
81 
Unrealized Gain
 
82 
Fair/Equity Basis - Long-Term Marketable Securities
 
163 
Investments, Noncurrent |
Marketable equity securities |
Other Marketable Equity Securities
 
 
Investments
 
 
Cost/Equity Basis
 
17 
Unrealized Gain
 
Fair/Equity Basis - Long-Term Marketable Securities
 
20 
Investments, Noncurrent |
Asset backed commercial paper
 
 
Investments
 
 
Cost/Equity Basis
19 
17 
Unrealized Gain
Fair/Equity Basis - Long-Term Marketable Securities
20 
18 
Investments, Noncurrent |
Auction rate securities
 
 
Investments
 
 
Cost/Equity Basis
Unrealized Loss
(1)
(1)
Fair/Equity Basis - Long-Term Marketable Securities
Investments, Noncurrent |
Marketable Debt Securities
 
 
Investments
 
 
Cost/Equity Basis
27 
25 
Unrealized Gain
Unrealized Loss
(1)
(1)
Fair/Equity Basis - Long-Term Marketable Securities
$ 27 
$ 25 
INVESTMENTS - Investment sales (Details) (Marketable equity securities, Regis Resources Ltd., USD $)
In Millions, unless otherwise specified
1 Months Ended
Mar. 31, 2016
Sale of AFS securities
 
Proceeds from sale of available for sale securities equity
$ 184 
Other income, net
 
Sale of AFS securities
 
Gain on sale of investments, net
$ 103 
INVESTMENTS - Equity Method Investments (Details) (TMAC)
In Millions, except Share data, unless otherwise specified
3 Months Ended
Mar. 31, 2016
Sep. 30, 2015
Other income, net
USD ($)
Mar. 31, 2016
IPO
CAD ($)
Sale of stock by subsidiary
 
 
 
Shares acquired in subsidiary IPO
 
 
242,979 
Equity method investment acquired
 
 
$ 2 
Ownership interest in subsidiary after subsidiary's IPO (as a percent)
29.37% 
 
 
Deconsolidation disclosures
 
 
 
Gain from derecognization of assets, liabilities, and non-controlling interest
 
$ 76 
 
INVESTMENTS - Impairments and Other Information (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Impairments
 
 
Impairment of investments
$ 0 
$ 57 
Increase (decrease) in fair value of marketable securities previously impaired
$ 4 
$ (18)
INVESTMENTS - Gross Unrealized Losses and Fair Value of the Company's Investments (Details) (USD $)
In Millions, unless otherwise specified
Mar. 31, 2016
Dec. 31, 2015
Securities in a continuous loss position: Fair Value
 
 
Less than 12 Months
$ 3 
$ 5 
12 Months or Greater
Total Fair Value
10 
12 
Securities in a continuous loss position: Unrealized Losses
 
 
Less than 12 Months
12 Months or Greater
Total Unrealized Loss
Marketable equity securities
 
 
Securities in a continuous loss position: Fair Value
 
 
Less than 12 Months
Total Fair Value
Securities in a continuous loss position: Unrealized Losses
 
 
Less than 12 Months
Total Unrealized Loss
Auction rate securities
 
 
Securities in a continuous loss position: Fair Value
 
 
12 Months or Greater
Total Fair Value
Securities in a continuous loss position: Unrealized Losses
 
 
12 Months or Greater
Total Unrealized Loss
$ 1 
$ 1 
INVENTORIES - Summary of Inventories (Details) (USD $)
In Millions, unless otherwise specified
Mar. 31, 2016
Dec. 31, 2015
Inventory, net
 
 
Materials, supplies and other
$ 459 
$ 454 
In-process
131 
118 
Concentrate and copper cathode
109 
128 
Precious metals
11 
10 
Total inventories
$ 710 
$ 710 
STOCKPILES AND ORE ON LEACH PADS - By location (Details) (USD $)
In Millions, unless otherwise specified
Mar. 31, 2016
Dec. 31, 2015
Stockpiles And Ore On Leach Pads
 
 
Current stockpiles and ore on leach pads
$ 864 
$ 896 
Long-term stockpiles and ore on leach pads
3,021 
3,000 
Stockpiles and ore on leach pads
3,885 
3,896 
Stockpiles
 
 
Stockpiles And Ore On Leach Pads
 
 
Current stockpiles and ore on leach pads
494 
554 
Long-term stockpiles and ore on leach pads
2,655 
2,622 
Ore on Leach Pads
 
 
Stockpiles And Ore On Leach Pads
 
 
Current stockpiles and ore on leach pads
370 
342 
Long-term stockpiles and ore on leach pads
366 
378 
Operating Segments |
Carlin
 
 
Stockpiles And Ore On Leach Pads
 
 
Stockpiles and ore on leach pads
407 
394 
Operating Segments |
Phoenix
 
 
Stockpiles And Ore On Leach Pads
 
 
Stockpiles and ore on leach pads
98 
106 
Operating Segments |
Twin Creeks
 
 
Stockpiles And Ore On Leach Pads
 
 
Stockpiles and ore on leach pads
339 
329 
Operating Segments |
Cripple Creek & Victor mine
 
 
Stockpiles And Ore On Leach Pads
 
 
Stockpiles and ore on leach pads
348 
319 
Operating Segments |
Yanacocha
 
 
Stockpiles And Ore On Leach Pads
 
 
Stockpiles and ore on leach pads
399 
440 
Operating Segments |
Merian
 
 
Stockpiles And Ore On Leach Pads
 
 
Stockpiles and ore on leach pads
Operating Segments |
Boddington
 
 
Stockpiles And Ore On Leach Pads
 
 
Stockpiles and ore on leach pads
390 
390 
Operating Segments |
Tanami
 
 
Stockpiles And Ore On Leach Pads
 
 
Stockpiles and ore on leach pads
12 
Operating Segments |
Kalgoorlie
 
 
Stockpiles And Ore On Leach Pads
 
 
Stockpiles and ore on leach pads
107 
109 
Operating Segments |
Batu Hijau
 
 
Stockpiles And Ore On Leach Pads
 
 
Stockpiles and ore on leach pads
1,192 
1,218 
Operating Segments |
Ahafo
 
 
Stockpiles And Ore On Leach Pads
 
 
Stockpiles and ore on leach pads
469 
456 
Operating Segments |
Akyem
 
 
Stockpiles And Ore On Leach Pads
 
 
Stockpiles and ore on leach pads
$ 122 
$ 119 
STOCKPILES AND ORE ON LEACH PADS - Write-downs (Details) (Stockpiles and ore on leach pads, USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2016
Carlin
 
Write-downs
 
Inventory write-downs
$ 27 
Twin Creeks
 
Write-downs
 
Inventory write-downs
Yanacocha
 
Write-downs
 
Inventory write-downs
45 
Costs applicable to sales
 
Write-downs
 
Inventory write-downs
50 
Depreciation and Amortization
 
Write-downs
 
Inventory write-downs
$ 24 
DEBT - Debt Tender (Details) (USD $)
In Millions, unless otherwise specified
0 Months Ended
Mar. 29, 2016
2019 and 2039 Notes |
Interest rate contracts |
Reclassification Out of Accumulated Other Comprehensive Income
 
Debt Tender Offer
 
Interest Expense
$ 2 
2019 and 2039 Notes |
Other income, net
 
Debt Tender Offer
 
Pre-tax loss on debt repurchased
2019 Senior Notes
 
Debt Tender Offer
 
Debt repurchased
274 
2039 Senior Notes
 
Debt Tender Offer
 
Debt repurchased
$ 226 
DEBT - Restricted Cash (Details) (PTNNT Revolving Credit Facility, Other current assets, USD $)
In Millions, unless otherwise specified
Mar. 31, 2016
Dec. 31, 2015
PTNNT Revolving Credit Facility |
Other current assets
 
 
Restricted cash
 
 
Restricted cash
$ 94 
$ 0 
DEBT - Maturities (Details) (USD $)
In Millions, unless otherwise specified
Mar. 31, 2016
Scheduled minimum debt repayments
 
Remainder of 2016
$ 143 
2017
765 
2018
2019
901 
2020
Debt repayments, thereafter
3,974 
Scheduled minimum capital lease repayments
 
Remainder of 2016
2017
2018
2019
2020
Capital lease repayments, thereafter
$ 3 
OTHER LIABILITIES (Details) (USD $)
In Millions, unless otherwise specified
Mar. 31, 2016
Dec. 31, 2015
Other current liabilities:
 
 
Accrued operating costs
$ 106 
$ 105 
Accrued capital expenditures
95 
121 
Reclamation and remediation liabilities
70 
71 
Accrued interest
67 
71 
Derivative instruments
49 
63 
Royalties
46 
63 
Holt property royalty
12 
10 
Taxes other than income and mining
Other
32 
27 
Other current liabilities, total
485 
540 
Other long-term liabilities:
 
 
Holt property royalty
152 
119 
Income and mining taxes
79 
78 
Power supply agreements
32 
31 
Social development obligations
29 
29 
Derivative instruments
17 
29 
Boddington contingent consideration
10 
10 
Other
14 
14 
Other long-term liabilities, total
$ 333 
$ 310 
CHANGES IN EQUITY (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Changes in Equity
 
 
At beginning of period
$ 14,292 
 
Net income (loss) attributable to Newmont stockholders
52 
183 
Net income (loss) attributable to noncontrolling interests
83 
46 
Other comprehensive income (loss)
(52)
(14)
At end of period
14,253 
13,363 
Common Stock
 
 
Changes in Equity
 
 
At beginning of period
847 
798 
Stock based awards
At end of period
849 
800 
Additional Paid-in Capital
 
 
Changes in Equity
 
 
At beginning of period
9,427 
8,712 
Stock based awards
10 
17 
Sale of noncontrolling interests
 
12 
At end of period
9,437 
8,741 
Accumulated Other Comprehensive Income (Loss)
 
 
Changes in Equity
 
 
At beginning of period
(334)
(478)
Other comprehensive income (loss)
(52)
(14)
At end of period
(386)
(492)
Retained Earnings
 
 
Changes in Equity
 
 
At beginning of period
1,410 
1,242 
Net income (loss) attributable to Newmont stockholders
52 
183 
Dividends paid
(13)
(12)
At end of period
1,449 
1,413 
Noncontrolling Interests
 
 
Changes in Equity
 
 
At beginning of period
2,942 
2,815 
Net income (loss) attributable to noncontrolling interests
83 
46 
Dividends paid to noncontrolling interests
(146)
(3)
Funding from noncontrolling interests, net
26 
24 
Sale of noncontrolling interests
 
22 
Other
(1)
(3)
At end of period
$ 2,904 
$ 2,901 
RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) - Components of AOCI (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2016
Mar. 31, 2015
RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)
 
 
At beginning of period
$ 14,292 
 
Other comprehensive income (loss)
(52)
(14)
At end of period
14,253 
13,363 
Accumulated Other Comprehensive Income (Loss)
 
 
RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)
 
 
At beginning of period
(334)
(478)
Change in other comprehensive income (loss) before reclassifications
34 
 
Reclassifications from accumulated other comprehensive income (loss)
(86)
 
Other comprehensive income (loss)
(52)
(14)
At end of period
(386)
(492)
Unrealized (loss) on marketable securities, net
 
 
RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)
 
 
At beginning of period
(43)
 
Change in other comprehensive income (loss) before reclassifications
26 
 
Reclassifications from accumulated other comprehensive income (loss)
(103)
 
Other comprehensive income (loss)
(77)
 
At end of period
(120)
 
Foreign currency translation adjustments
 
 
RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)
 
 
At beginning of period
116 
 
Change in other comprehensive income (loss) before reclassifications
 
Other comprehensive income (loss)
 
At end of period
119 
 
Pension and other post-retirement benefit adjustments
 
 
RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)
 
 
At beginning of period
(207)
 
Reclassifications from accumulated other comprehensive income (loss)
 
Other comprehensive income (loss)
 
At end of period
(204)
 
Changes in fair value of cash flow hedge instruments
 
 
RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)
 
 
At beginning of period
(200)
 
Change in other comprehensive income (loss) before reclassifications
 
Reclassifications from accumulated other comprehensive income (loss)
14 
 
Other comprehensive income (loss)
19 
 
At end of period
$ (181)
 
RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) - Reclassifications (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Amount Reclassified from Accumulated Other Comprehensive Income (Loss)
 
 
Costs applicable to sales
$ 1,081 1
$ 1,027 1
Other income, net
98 
11 
Interest expense, net
(79)
(85)
Income (loss) before income and mining tax and other items
490 
423 
Tax benefit (expense)
324 
193 
Net income (loss)
135 
229 
Unrealized (loss) on marketable securities, net
 
 
Amount Reclassified from Accumulated Other Comprehensive Income (Loss)
 
 
Net of tax
(103)
 
Pension and other post-retirement benefit adjustments
 
 
Amount Reclassified from Accumulated Other Comprehensive Income (Loss)
 
 
Net of tax
 
Changes in fair value of cash flow hedge instruments
 
 
Amount Reclassified from Accumulated Other Comprehensive Income (Loss)
 
 
Net of tax
14 
 
Reclassification Out of Accumulated Other Comprehensive Income
 
 
Amount Reclassified from Accumulated Other Comprehensive Income (Loss)
 
 
Net of tax
(86)
73 
Income (loss) before income and mining tax and other items
22 
18 
Tax benefit (expense)
(8)
(6)
Net income (loss)
14 
12 
Reclassification Out of Accumulated Other Comprehensive Income |
Unrealized (loss) on marketable securities, net
 
 
Amount Reclassified from Accumulated Other Comprehensive Income (Loss)
 
 
Income (loss) before income and mining tax and other items
103 
(56)
Net income (loss)
103 
(56)
Reclassification Out of Accumulated Other Comprehensive Income |
Accumulated net marketable securities adjustments - sale of marketable securities
 
 
Amount Reclassified from Accumulated Other Comprehensive Income (Loss)
 
 
Other income, net
(103)
(1)
Reclassification Out of Accumulated Other Comprehensive Income |
Accumulated net marketable securities adjustments - Impairment of marketable securities
 
 
Amount Reclassified from Accumulated Other Comprehensive Income (Loss)
 
 
Other income, net
 
57 
Reclassification Out of Accumulated Other Comprehensive Income |
Pension and other post-retirement benefit adjustments
 
 
Amount Reclassified from Accumulated Other Comprehensive Income (Loss)
 
 
Tax benefit (expense)
(2)
(2)
Net of tax
Reclassification Out of Accumulated Other Comprehensive Income |
Accumulated defined benefit pension plans adjustment, amortization
 
 
Amount Reclassified from Accumulated Other Comprehensive Income (Loss)
 
 
Total before tax
Reclassification Out of Accumulated Other Comprehensive Income |
Operating cash flow hedges |
Changes in fair value of cash flow hedge instruments
 
 
Amount Reclassified from Accumulated Other Comprehensive Income (Loss)
 
 
Costs applicable to sales
19 
14 
Other income, net
 
(1)
Reclassification Out of Accumulated Other Comprehensive Income |
Interest rate contracts |
Changes in fair value of cash flow hedge instruments
 
 
Amount Reclassified from Accumulated Other Comprehensive Income (Loss)
 
 
Interest expense, net
$ 3 
$ 5 
NET CHANGE IN OPERATING ASSETS AND LIABILITIES (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Decrease (increase) in operating assets:
 
 
Trade and other accounts receivables
$ (31)
$ 38 
Inventories, stockpiles and ore on leach pads
(37)
(60)
EGR refinery and other assets
 
(657)
Other assets
(5)
85 
Increase (decrease) in operating liabilities:
 
 
Accounts payable and other accrued liabilities
(61)
(112)
EGR refinery and other liabilities
 
657 
Reclamation liabilities
(6)
(24)
Net change in operating assets and liabilities
$ (140)
$ (73)
CONDENSED CONSOLIDATING FINANCIAL STATEMENTS - Additional Information (Details) (NUSA)
Mar. 31, 2016
NUSA
 
Condensed Financial Statements
 
Percent ownership held by Newmont
100.00% 
CONDENSED CONSOLIDATING FINANCIAL STATEMENTS - Statement of Operation (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Condensed Consolidating Statement of Operation
 
 
Sales
$ 2,032 
$ 1,972 
Costs and expenses
 
 
Costs applicable to sales
1,081 1
1,027 1
Depreciation and amortization
322 
289 
Reclamation and remediation
25 
23 
Exploration
30 
33 
Advanced projects, research and development
28 
28 
General and administrative
57 
58 
Other expense, net
18 
17 
Total costs and expenses
1,561 
1,475 
Other income (expense)
 
 
Other income, net
98 
11 
Interest expense, net
(79)
(85)
Total other income (expense)
19 
(74)
Income (loss) before income and mining tax and other items
490 
423 
Income and mining tax benefit (expense)
(324)
(193)
Equity income (loss) of affiliates
(5)
(9)
Income (loss) from continuing operations
161 
221 
Income (loss) from discontinued operations
(26)
Net income (loss)
135 
229 
Net loss (income) attributable to noncontrolling interests
(83)
(46)
Net income (loss) attributable to Newmont stockholders
52 
183 
Comprehensive income (loss)
83 
215 
Comprehensive loss (income) attributable to noncontrolling interests
83 
46 
Comprehensive income (loss) attributable to Newmont stockholders
 
169 
Reportable Legal Entities |
Newmont Mining Corporation
 
 
Costs and expenses
 
 
Depreciation and amortization
 
Total costs and expenses
 
Other income (expense)
 
 
Other income, net
(28)
Interest income - intercompany
30 
33 
Interest expense - intercompany
(8)
(3)
Interest expense, net
(71)
(77)
Total other income (expense)
(40)
(75)
Income (loss) before income and mining tax and other items
(40)
(76)
Income and mining tax benefit (expense)
75 
25 
Equity income (loss) of affiliates
17 
234 
Income (loss) from continuing operations
52 
183 
Net income (loss)
52 
183 
Net income (loss) attributable to Newmont stockholders
52 
183 
Comprehensive income (loss)
 
170 
Comprehensive income (loss) attributable to Newmont stockholders
 
170 
Reportable Legal Entities |
Newmont USA
 
 
Condensed Consolidating Statement of Operation
 
 
Sales
471 
502 
Costs and expenses
 
 
Costs applicable to sales
306 
289 
Depreciation and amortization
84 
77 
Reclamation and remediation
Exploration
Advanced projects, research and development
General and administrative
17 
14 
Other expense, net
Total costs and expenses
422 
395 
Other income (expense)
 
 
Other income, net
 
Interest expense, net
(2)
(1)
Total other income (expense)
(2)
Income (loss) before income and mining tax and other items
47 
115 
Income and mining tax benefit (expense)
(11)
(29)
Equity income (loss) of affiliates
(274)
(11)
Income (loss) from continuing operations
(238)
75 
Net income (loss)
(238)
75 
Net income (loss) attributable to Newmont stockholders
(238)
75 
Comprehensive income (loss)
(232)
82 
Comprehensive income (loss) attributable to Newmont stockholders
(232)
82 
Reportable Legal Entities |
Other Subsidiaries
 
 
Condensed Consolidating Statement of Operation
 
 
Sales
1,561 
1,470 
Costs and expenses
 
 
Costs applicable to sales
775 
738 
Depreciation and amortization
238 
211 
Reclamation and remediation
22 
20 
Exploration
24 
27 
Advanced projects, research and development
26 
25 
General and administrative
40 
44 
Other expense, net
14 
14 
Total costs and expenses
1,139 
1,079 
Other income (expense)
 
 
Other income, net
89 
30 
Interest income - intercompany
Interest expense - intercompany
(31)
(35)
Interest expense, net
(6)
(7)
Total other income (expense)
61 
(7)
Income (loss) before income and mining tax and other items
483 
384 
Income and mining tax benefit (expense)
(388)
(189)
Equity income (loss) of affiliates
23 
Income (loss) from continuing operations
97 
218 
Income (loss) from discontinued operations
(26)
Net income (loss)
71 
226 
Net loss (income) attributable to noncontrolling interests
(83)
(77)
Net income (loss) attributable to Newmont stockholders
(12)
149 
Comprehensive income (loss)
10 
200 
Comprehensive loss (income) attributable to noncontrolling interests
83 
71 
Comprehensive income (loss) attributable to Newmont stockholders
(73)
129 
Eliminations
 
 
Other income (expense)
 
 
Interest income - intercompany
(39)
(38)
Interest expense - intercompany
39 
38 
Equity income (loss) of affiliates
250 
(255)
Income (loss) from continuing operations
250 
(255)
Net income (loss)
250 
(255)
Net loss (income) attributable to noncontrolling interests
 
31 
Net income (loss) attributable to Newmont stockholders
250 
(224)
Comprehensive income (loss)
305 
(237)
Comprehensive loss (income) attributable to noncontrolling interests
 
(25)
Comprehensive income (loss) attributable to Newmont stockholders
$ 305 
$ (212)
CONDENSED CONSOLIDATING FINANCIAL STATEMENTS - Statement of Cash Flows (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Operating activities:
 
 
Net income (loss)
$ 135 
$ 229 
Net change in operating assets and liabilities
(140)
(73)
Net cash provided by continuing operating activities
524 
628 
Net cash used in discontinued operations
(2)
(3)
Net cash provided by operating activities
522 
625 
Investing activities:
 
 
Additions to property, plant and mine development
(297)
(284)
Sales of investments
184 
29 
Proceeds from sale of other assets
44 
Other
(4)
(3)
Net cash used in investing activities
(111)
(214)
Financing activities:
 
 
Repayment of debt
(499)
(205)
Sale of noncontrolling interests
 
37 
Funding from noncontrolling interests
12 
47 
Dividends paid to noncontrolling interests
(146)
(3)
Dividends paid to common stockholders
(13)
(12)
(Increase) decrease in restricted cash
(91)
(55)
Other
(1)
(5)
Net cash used in financing activities
(738)
(196)
Effect of exchange rate changes on cash
(20)
Net change in cash and cash equivalents
(321)
195 
Cash and cash equivalents at beginning of period
2,782 
2,403 
Cash and cash equivalents at end of period
2,461 
2,598 
Reportable Legal Entities |
Newmont Mining Corporation
 
 
Operating activities:
 
 
Net income (loss)
52 
183 
Net cash provided by operating activities
757 
102 
Financing activities:
 
 
Repayment of debt
(498)
(200)
Net intercompany borrowings (repayments)
(246)
112 
Dividends paid to common stockholders
(13)
(12)
Other
 
(2)
Net cash used in financing activities
(757)
(102)
Reportable Legal Entities |
Newmont USA
 
 
Operating activities:
 
 
Net income (loss)
(238)
75 
Net cash provided by operating activities
40 
28 
Investing activities:
 
 
Additions to property, plant and mine development
(66)
(81)
Sales of investments
 
25 
Proceeds from sale of other assets
 
Net cash used in investing activities
(66)
(50)
Financing activities:
 
 
Repayment of debt
(1)
 
Net intercompany borrowings (repayments)
(320)
(20)
Sale of noncontrolling interests
 
Dividends paid to common stockholders
(830)
 
(Increase) decrease in restricted cash
 
Net cash used in financing activities
(1,151)
(16)
Net change in cash and cash equivalents
(1,177)
(38)
Cash and cash equivalents at beginning of period
1,181 
1,097 
Cash and cash equivalents at end of period
1,059 
Reportable Legal Entities |
Other Subsidiaries
 
 
Operating activities:
 
 
Net income (loss)
71 
226 
Net cash provided by operating activities
555 
495 
Investing activities:
 
 
Additions to property, plant and mine development
(231)
(203)
Sales of investments
184 
Proceeds from sale of other assets
38 
Other
(4)
(3)
Net cash used in investing activities
(45)
(164)
Financing activities:
 
 
Repayment of debt
 
(5)
Net intercompany borrowings (repayments)
566 
(92)
Sale of noncontrolling interests
 
34 
Funding from noncontrolling interests
12 
47 
Dividends paid to noncontrolling interests
(146)
(3)
(Increase) decrease in restricted cash
(91)
(56)
Other
(1)
(3)
Net cash used in financing activities
340 
(78)
Effect of exchange rate changes on cash
(20)
Net change in cash and cash equivalents
856 
233 
Cash and cash equivalents at beginning of period
1,601 
1,306 
Cash and cash equivalents at end of period
2,457 
1,539 
Eliminations
 
 
Operating activities:
 
 
Net income (loss)
250 
(255)
Net cash provided by operating activities
(830)
 
Financing activities:
 
 
Dividends paid to common stockholders
830 
 
Net cash used in financing activities
$ 830 
 
CONDENSED CONSOLIDATING FINANCIAL STATEMENTS - Balance Sheet (Details) (USD $)
In Millions, unless otherwise specified
Mar. 31, 2016
Dec. 31, 2015
Mar. 31, 2015
Dec. 31, 2014
Assets
 
 
 
 
Cash and cash equivalents
$ 2,461 
$ 2,782 
$ 2,598 
$ 2,403 
Trade receivables
273 
260 
 
 
Other accounts receivables
222 
185 
 
 
Investments
27 
19 
 
 
Inventories
710 
710 
 
 
Stockpiles and ore on leach pads
864 
896 
 
 
Other current assets
223 
131 
 
 
Current assets
4,780 
4,983 
 
 
Property, plant and mine development, net
14,284 
14,303 
 
 
Investments
240 
402 
 
 
Stockpiles and ore on leach pads
3,021 
3,000 
 
 
Deferred income tax assets
1,533 
1,718 
 
 
Other non-current assets
695 
730 
 
 
Total assets
24,553 
25,136 
 
 
Liabilities
 
 
 
 
Debt
335 
149 
 
 
Accounts payable
367 
396 
 
 
Employee-related benefits
196 
293 
 
 
Income and mining taxes
75 
38 
 
 
Other current liabilities
485 
540 
 
 
Current liabilities
1,458 
1,416 
 
 
Debt (non-current)
5,369 
6,041 
 
 
Reclamation and remediation liabilities
1,821 
1,800 
 
 
Deferred income tax liabilities
865 
840 
 
 
Employee-related benefits
454 
437 
 
 
Other non-current liabilities
333 
310 
 
 
Total liabilities
10,300 
10,844 
 
 
Equity
 
 
 
 
Newmont stockholders’ equity
11,349 
11,350 
 
 
Noncontrolling interests
2,904 
2,942 
 
 
Total equity (Note 18)
14,253 
14,292 
13,363 
 
Total liabilities and equity
24,553 
25,136 
 
 
Reportable Legal Entities |
Newmont Mining Corporation
 
 
 
 
Assets
 
 
 
 
Intercompany receivable
4,904 
4,587 
 
 
Current assets
4,904 
4,587 
 
 
Property, plant and mine development, net
25 
26 
 
 
Investments in subsidiaries
14,472 
15,650 
 
 
Deferred income tax assets
297 
223 
 
 
Long-term intercompany receivable
1,734 
1,742 
 
 
Total assets
21,432 
22,228 
 
 
Liabilities
 
 
 
 
Intercompany payable
4,582 
4,888 
 
 
Other current liabilities
67 
70 
 
 
Current liabilities
4,649 
4,958 
 
 
Debt (non-current)
5,353 
5,839 
 
 
Long-term intercompany payable
81 
81 
 
 
Total liabilities
10,083 
10,878 
 
 
Equity
 
 
 
 
Newmont stockholders’ equity
11,349 
11,350 
 
 
Total equity (Note 18)
11,349 
11,350 
 
 
Total liabilities and equity
21,432 
22,228 
 
 
Reportable Legal Entities |
Newmont USA
 
 
 
 
Assets
 
 
 
 
Cash and cash equivalents
1,181 
1,059 
1,097 
Trade receivables
36 
31 
 
 
Other accounts receivables
 
 
 
Intercompany receivable
5,392 
6,212 
 
 
Inventories
150 
158 
 
 
Stockpiles and ore on leach pads
218 
201 
 
 
Other current assets
40 
53 
 
 
Current assets
5,848 
7,836 
 
 
Property, plant and mine development, net
3,184 
3,179 
 
 
Investments
15 
15 
 
 
Investments in subsidiaries
1,576 
3,886 
 
 
Stockpiles and ore on leach pads
619 
621 
 
 
Deferred income tax assets
524 
757 
 
 
Long-term intercompany receivable
498 
434 
 
 
Other non-current assets
223 
253 
 
 
Total assets
12,487 
16,981 
 
 
Liabilities
 
 
 
 
Debt
 
 
Accounts payable
60 
78 
 
 
Intercompany payable
4,694 
5,495 
 
 
Employee-related benefits
71 
136 
 
 
Other current liabilities
101 
133 
 
 
Current liabilities
4,929 
5,845 
 
 
Debt (non-current)
 
 
Reclamation and remediation liabilities
235 
231 
 
 
Deferred income tax liabilities
86 
85 
 
 
Employee-related benefits
287 
283 
 
 
Other non-current liabilities
35 
37 
 
 
Total liabilities
5,578 
6,488 
 
 
Equity
 
 
 
 
Newmont stockholders’ equity
6,909 
10,493 
 
 
Total equity (Note 18)
6,909 
10,493 
 
 
Total liabilities and equity
12,487 
16,981 
 
 
Reportable Legal Entities |
Other Subsidiaries
 
 
 
 
Assets
 
 
 
 
Cash and cash equivalents
2,457 
1,601 
1,539 
1,306 
Trade receivables
237 
229 
 
 
Other accounts receivables
214 
185 
 
 
Intercompany receivable
9,180 
8,101 
 
 
Investments
27 
19 
 
 
Inventories
560 
552 
 
 
Stockpiles and ore on leach pads
646 
695 
 
 
Other current assets
183 
78 
 
 
Current assets
13,504 
11,460 
 
 
Property, plant and mine development, net
11,111 
11,136 
 
 
Investments
225 
387 
 
 
Investments in subsidiaries
 
2,820 
 
 
Stockpiles and ore on leach pads
2,402 
2,379 
 
 
Deferred income tax assets
1,202 
1,228 
 
 
Long-term intercompany receivable
110 
108 
 
 
Other non-current assets
472 
477 
 
 
Total assets
29,026 
29,995 
 
 
Liabilities
 
 
 
 
Debt
332 
146 
 
 
Accounts payable
307 
318 
 
 
Intercompany payable
10,200 
8,517 
 
 
Employee-related benefits
125 
157 
 
 
Income and mining taxes
75 
38 
 
 
Other current liabilities
317 
337 
 
 
Current liabilities
11,356 
9,513 
 
 
Debt (non-current)
10 
195 
 
 
Reclamation and remediation liabilities
1,586 
1,569 
 
 
Deferred income tax liabilities
1,269 
1,245 
 
 
Employee-related benefits
167 
154 
 
 
Long-term intercompany payable
2,297 
2,241 
 
 
Other non-current liabilities
298 
273 
 
 
Total liabilities
16,983 
15,190 
 
 
Equity
 
 
 
 
Newmont stockholders’ equity
9,139 
10,202 
 
 
Noncontrolling interests
2,904 
4,603 
 
 
Total equity (Note 18)
12,043 
14,805 
 
 
Total liabilities and equity
29,026 
29,995 
 
 
Eliminations
 
 
 
 
Assets
 
 
 
 
Intercompany receivable
(19,476)
(18,900)
 
 
Current assets
(19,476)
(18,900)
 
 
Property, plant and mine development, net
(36)
(38)
 
 
Investments in subsidiaries
(16,048)
(22,356)
 
 
Deferred income tax assets
(490)
(490)
 
 
Long-term intercompany receivable
(2,342)
(2,284)
 
 
Total assets
(38,392)
(44,068)
 
 
Liabilities
 
 
 
 
Intercompany payable
(19,476)
(18,900)
 
 
Current liabilities
(19,476)
(18,900)
 
 
Deferred income tax liabilities
(490)
(490)
 
 
Long-term intercompany payable
(2,378)
(2,322)
 
 
Total liabilities
(22,344)
(21,712)
 
 
Equity
 
 
 
 
Newmont stockholders’ equity
(16,048)
(20,695)
 
 
Noncontrolling interests
 
(1,661)
 
 
Total equity (Note 18)
(16,048)
(22,356)
 
 
Total liabilities and equity
$ (38,392)
$ (44,068)
 
 
COMMITMENTS AND CONTINGENCIES - Environmental Matters (Details) (USD $)
In Millions, unless otherwise specified
Mar. 31, 2016
Dec. 31, 2015
Mar. 31, 2015
Dec. 31, 2014
Accrual for future reclamation costs
 
 
 
 
Asset retirement obligation
$ 1,575 
$ 1,553 
$ 1,513 
$ 1,497 
Environmental remediation obligations
316 
318 
171 
192 
Other current liabilities
 
 
 
 
Accrual for future reclamation costs
 
 
 
 
Reclamation obligation, current
$ 36 
$ 37 
 
 
Reclamation and remediation liabilities
 
 
 
 
Accrual for future reclamation costs
 
 
 
 
Range of reclamation and remediation liabilities upper limit
43.00% 
 
 
 
Range of reclamation and remediation liabilities lower limit
1.00% 
 
 
 
COMMITMENTS AND CONTINGENCIES - Environmental Matters by Site (Details) (USD $)
In Millions, unless otherwise specified
0 Months Ended 1 Months Ended
Mar. 31, 2016
Dec. 31, 2015
Mar. 31, 2015
Dec. 31, 2014
Jun. 5, 2007
Newmont USA Limited
Environmental remediation
Ross-Adams Mine Site
Jun. 5, 2007
Newmont USA Limited
Mar. 31, 2016
Dawn Mining Company
Apr. 30, 2015
Dawn Mining Company
Environmental remediation
Midnite Mine
Apr. 30, 2014
Dawn Mining Company
Environmental remediation
Midnite Mine
Jul. 31, 2012
Dawn Mining Company
Environmental remediation
Midnite Mine
Mar. 31, 2016
Dawn Mining Company
Environmental remediation
Midnite Mine
Dec. 31, 2012
Dawn Mining Company
Environmental remediation
Midnite Mine
Loss contingencies
 
 
 
 
 
 
 
 
 
 
 
 
Percent ownership held by Newmont
 
 
 
 
 
100.00% 
51.00% 
 
 
 
 
 
Damages sought
 
 
 
 
$ 0.3 
 
 
 
 
 
 
 
Department of Interior contribution for past and future cleanup costs
 
 
 
 
 
 
 
 
 
 
 
42 
Expected remediation design completion, first phase percentage
 
 
 
 
 
 
 
 
 
30.00% 
 
 
Expected remediation design completion, second phase percentage
 
 
 
 
 
 
 
 
60.00% 
 
 
 
Expected remediation design completion, reasonaby certain threshold as a percent)
 
 
 
 
 
 
 
90.00% 
 
 
 
 
Environmental remediation obligations
$ 316 
$ 318 
$ 171 
$ 192 
 
 
 
 
 
 
$ 220 
 
COMMITMENTS AND CONTINGENCIES - Administrative Matters (Details) (USD $)
In Millions, unless otherwise specified
1 Months Ended 12 Months Ended 3 Months Ended
Nov. 30, 2015
Unfavorable Tax Ruling
Yanacocha Tax Dispute
Buenaventura and Minas Conga
Contractual right to conduct exploration
judgment
Dec. 31, 2000
Unfavorable Tax Ruling
Yanacocha Tax Dispute
Buenaventura and Minas Conga
Contractual right to conduct exploration
Dec. 31, 2000
Unfavorable Tax Ruling
Yanacocha Tax Dispute
Buenaventura and Minas Conga
Contractual right to conduct exploration
Maximum
Mar. 31, 2016
South America
Minera Yanacocha S.R.L.
Environmental remediation
Mar. 31, 2016
South America
Minera Yanacocha S.R.L.
Environmental remediation
Minimum
Mar. 31, 2016
South America
Minera Yanacocha S.R.L.
Environmental remediation
Maximum
Mar. 31, 2016
South America
Minera Yanacocha S.R.L.
Environmental remediation
OEFA
Minimum
item
Mar. 31, 2016
South America
Minera Yanacocha S.R.L.
Environmental remediation
OEFA
Maximum
item
Mar. 31, 2016
South America
Minera Yanacocha S.R.L.
Environmental remediation
Water Authority
Minimum
item
Mar. 31, 2016
South America
Minera Yanacocha S.R.L.
Environmental remediation
Water Authority
Maximum
item
Loss contingencies
 
 
 
 
 
 
 
 
 
 
Number of units with alleged violations
 
 
 
 
 
 
80,112 
20,000 
Potential fine for each unit alleged violations (in dollars per unit)
 
 
 
0.00116 
 
 
 
 
 
 
Potential fine for alleged violations
 
 
 
 
$ 0 
$ 116 
 
 
 
 
Intangible asset acquired
 
29 
 
 
 
 
 
 
 
 
Intangible asset, useful life
 
 
10 years 
 
 
 
 
 
 
 
Number of rulings overturned
 
 
 
 
 
 
 
 
 
Potential liability, including fines and interest
$ 70 
 
 
 
 
 
 
 
 
 
COMMITMENTS AND CONTINGENCIES - PT Newmont Nusa Tenggara (Details) (PTNNT - Batu Hijau)
12 Months Ended 48 Months Ended 60 Months Ended 0 Months Ended 51 Months Ended 1 Months Ended
Mar. 31, 2016
Newmont Mining Corporation
Dec. 31, 2006
Newmont Mining Corporation
Batu Hijau
Required divestiture
Dec. 31, 2010
Newmont Mining Corporation
Batu Hijau
Required divestiture
Dec. 31, 2010
Newmont Mining Corporation
Batu Hijau
Required divestiture
Mar. 31, 2010
Newmont Mining Corporation
Batu Hijau
Required divestiture
Minimum
Mar. 31, 2009
Newmont Mining Corporation
Batu Hijau
Required divestiture
Minimum
Mar. 31, 2008
Newmont Mining Corporation
Batu Hijau
Required divestiture
Minimum
Mar. 31, 2007
Newmont Mining Corporation
Batu Hijau
Required divestiture
Minimum
Mar. 31, 2006
Newmont Mining Corporation
Batu Hijau
Required divestiture
Minimum
Dec. 17, 2010
Newmont Mining Corporation
Batu Hijau
Required divestiture
Ministry of Energy and Mineral Resources
May 6, 2011
Newmont Mining Corporation
Batu Hijau
Required divestiture
PIP
Mar. 31, 2010
PTPI
Feb. 28, 2010
PTMDB
Batu Hijau
Required divestiture
Loss contingencies
 
 
 
 
 
 
 
 
 
 
 
 
 
Newmont equity interest ownership (as a percent)
31.50% 
 
 
 
 
 
 
 
 
 
 
 
 
Percentage of ownership shares by the Indonesian government or Indonesian nationals in PTNNT
 
 
 
 
51.00% 
44.00% 
37.00% 
30.00% 
23.00% 
 
 
 
 
Interest to be offered (as a percent)
 
3.00% 
7.00% 
 
 
 
 
 
 
 
 
 
 
Other company ownership percentage in affiliate
 
 
 
 
 
 
 
 
 
 
 
20.00% 
 
Aggregate interest to be offered
 
 
 
31.00% 
 
 
 
 
 
 
 
 
 
PTMDB's ownership in PTNNT
 
 
 
 
 
 
 
 
 
 
 
 
24.00% 
Sale and transfer of shares of interest percent
 
 
 
 
 
 
 
 
 
7.00% 
7.00% 
 
 
COMMITMENTS AND CONTINGENCIES - NWG Investments Inc v. Fronteer Gold Inc. (Details) (USD $)
In Millions, unless otherwise specified
0 Months Ended 1 Months Ended 0 Months Ended 1 Months Ended
Apr. 8, 2008
North America
Pending Litigation
Sep. 30, 2007
NWG Investments Inc.
NewWest Gold
Feb. 26, 2014
NWG Investments Inc.
NWG Ontario Complaint
Pending Litigation
Sep. 24, 2012
NWG Investments Inc.
North America
NWG New York Summons and Complaint
Pending Litigation
Sep. 30, 2007
NWG Investments Inc.
Jacob Safra
Sep. 30, 2007
Fronteer
Aurora
Loss contingencies
 
 
 
 
 
 
Other company ownership percentage in affiliate
 
86.00% 
 
 
 
 
Ownership interest held by majority shareholder of parent of acquiree entity
 
 
 
 
100.00% 
 
Ownership interest in Aurora Energy Resources Inc. held by Fronteer
 
 
 
 
 
47.00% 
Uranium mining moratorium term
3 years 
 
 
 
 
 
Damages sought
 
 
$ 1,200.0 
$ 750.0 
 
 
COMMITMENTS AND CONTINGENCIES - Investigations (Details) (Compliance Review Investigations, USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2016
Compliance Review Investigations
 
Investigations
 
Agreement term
1 year 
Provision for loss
$ 0 
COMMITMENTS AND CONTINGENCIES - Royalty Obligations (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 0 Months Ended 3 Months Ended
Mar. 31, 2016
Corporate and other
Minimum Royalty Obligations
location
Jun. 25, 2009
Boddington
Jun. 30, 2010
Boddington
Mar. 31, 2016
Boddington
Dec. 31, 2015
Boddington
Jun. 25, 2009
Boddington
Jun. 25, 2009
Maximum
Boddington
Minimum Royalty Obligations
 
 
 
 
 
 
 
Number of mines subject to minimum royalty obligations
 
 
 
 
 
 
Remainder of 2016
$ 28 
 
 
 
 
 
 
2017
32 
 
 
 
 
 
 
2018
32 
 
 
 
 
 
 
2019
32 
 
 
 
 
 
 
2020
32 
 
 
 
 
 
 
Thereafter
19 
 
 
 
 
 
 
Boddington final interest acquired
 
 
 
 
 
33.33% 
 
Acquisition price
 
982 
 
 
 
 
 
Contingent royalty
 
 
 
 
 
 
100 
Percentage of average operating margin
 
 
 
 
 
50.00% 
 
Operating margin per ounce
 
600 
 
 
 
 
 
Contingent consideration payable as a percentage of gold sales
 
 
33.30% 
 
 
 
 
Boddington contingent consideration liability
 
 
 
10 
10 
62 
 
Contingent consideration cash paid
 
 
 
 
 
Contingent consideration range low
 
 
 
 
 
 
Contingent consideration, high end of range
 
 
 
$ 28 
 
 
 
COMMITMENTS AND CONTINGENCIES - Royalty Obligations Holt Property (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 1 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Mar. 31, 2016
Discontinued operations disposed of by sale
Holloway Mining Company
Mar. 31, 2015
Discontinued operations disposed of by sale
Holloway Mining Company
Mar. 31, 2016
Holt property royalty
Discontinued operations disposed of by sale
Holloway Mining Company
Mar. 31, 2015
Holt property royalty
Discontinued operations disposed of by sale
Holloway Mining Company
Dec. 31, 2015
Holt property royalty
Discontinued operations disposed of by sale
Holloway Mining Company
May 31, 2011
Ontario Court of Appeal Ruling
Holt property royalty
Discontinued operations disposed of by sale
Holloway Mining Company
Newmont Canada
Mar. 31, 2016
Corporate and other
Dec. 31, 2015
Corporate and other
Sliding scale royalty
 
 
 
 
 
 
 
 
 
 
Sliding scale royalty, percentage of net smelter returns
 
 
 
 
 
 
 
0.013% 
 
 
Holt royalty
 
 
 
 
$ 164 
 
$ 129 
 
 
 
Income (loss) from discontinued operations (Note 9)
(26)
(26)
 
 
 
 
 
 
Discontinued operations, income tax expense (benefit)
 
 
(11)
 
 
 
 
 
 
Royalty paid
 
 
 
 
 
 
 
 
Other commitments
 
 
 
 
 
 
 
 
 
 
Letters of credit surety bonds and bank guarantees, outstanding
 
 
 
 
 
 
 
 
$ 2,153 
$ 2,060