DECEMBER 2021 INVESTOR PRESENTATION slide image

DECEMBER 2021 INVESTOR PRESENTATION

Adjusted net income (loss) N Management uses Adjusted net income (loss) to evaluate the Company's operating performance and for planning and forecasting future business operations. The Company believes the use of Adjusted net income (loss) allows investors and others to understand the results of the continuing operations of the Company and its direct and indirect subsidiaries relating to the sale of products, by excluding certain items that have a disproportionate impact on our results for a particular period. Adjustments to continuing operations are presented before tax and net of our partners' noncontrolling interests, when applicable. The tax effect of adjustments is presented in the Tax effect of adjustments line and is calculated using the applicable regional tax rate. Management's determination of the components of Adjusted net income (loss) are evaluated periodically and based, in part, on a review of non-GAAP financial measures used by mining industry analysts. Net income (loss) attributable to Newmont stockholders is reconciled to Adjusted net income (loss) as follows: TM Loss on assets held for sale, net, included in Loss on assets held for sale, represents the loss recognized due to the reclassification of the Conga mill assets as held for sale during the third quarter of 2021. The assets were remeasured to fair value less costs to sell. Amounts are presented net of income (loss) attributable to noncontrolling interests of $(199) and $(199), respectively. Refer to Note 7 of the Condensed Consolidated Financial Statements for further information. Three Months Ended September 30, 2021 (1) Nine Months Ended September 30, 2021 Per share measures may not recalculate due to rounding. (2) per share data (1) basic diluted per share data (1) basic diluted (3) $ 3 $ - $ - $ 1,212 $ 1.52 $ 1.51 (4) Net income (loss) attributable to Newmont stockholders Net loss (income) attributable to Newmont stockholders from discontinued operations Net income (loss) attributable to Newmont stockholders from continuing operations Loss on assets held for sale, net (2) Change in fair value of investments (3) (11) (0.01) (0.01) (42) (0.05) (0.05) (5) (6) (8) (0.01) (0.01) 1,170 1.47 1.46 (7) 372 0.47 0.46 372 0.47 0.46 96 0.12 0.12 180 0.23 0.23 (8) Reclamation and remediation charges (4) (Gain) loss on asset and investment sales (5) Impairment of long-lived and other assets (6) 79 0.10 0.10 109 0.14 0.14 (9) Settlement costs (7) Restructuring and severance, net (8) COVID-19 specific costs (9) Impairment of investments Tax effect of adjustments (10) Valuation allowance and other tax adjustments, net (11) Adjusted net income (loss) (12) Weighted average common shares (millions): (13) 6 - (3) (46) (0.05) (0.05) 0.01 0.01 18 0.02 0.02 1 1 | | | | 11 0.01 0.01 9 0.01 0.01 3 1 (167) (0.22) (0.21) (197) (0.27) (0.25) 106 0.13 0.13 117 0.15 $ 483 $ 0.60 $ 0.60 $ 1,747 $ 2.18 $ 0.15 2.18 799 800 800 802 Change in fair value of investments, included in Other income (loss), net, primarily represents unrealized gains and losses related to the Company's investment in current and non-current marketable and other equity securities. For further information regarding our investments, refer to Note 14 of the Condensed Consolidated Financial Statements. Reclamation and remediation charges, included in Reclamation and remediation, represent revisions to reclamation and remediation plans at the Company's former operating properties and historic mining operations that have entered the closure phase and have no substantive future economic value. Refer to Note 5 of the Condensed Consolidated Financial Statement for further information. (Gain) loss on asset and investment sales, included in Gain on asset and investment sales, net, primarily represents a gain on the sale of TMAC. For further information, refer to Note 9 of the Condensed Consolidated Financial Statements. Impairment of long-lived and other assets, included in Other expense, net, represents non-cash write-downs of various assets that are no longer in use and materials and supplies inventories. Settlement costs, included in Other expense, net, primarily are comprised of a voluntary contribution made to the Republic of Suriname. Restructuring and severance, net, included in Other expense, net, primarily represents severance and related costs associated with significant organizational or operating model changes implemented by the Company. Amounts are presented net of income (loss) attributable to noncontrolling interests of $- and $(1), respectively. COVID-19 specific costs included in Other expense, net, primarily include amounts distributed from the Newmont Global Community Fund to help host communities, governments and employees combat the COVID-19 pandemic. Adjusted net income (loss) has not been adjusted for $23 and $63, respectively, of incremental COVID-19 costs incurred as a result of actions taken to protect against the impacts of the COVID-19 pandemic at our operational sites. Refer to Note 8 of the Condensed Consolidated Financial Statements for further information. (10) The tax effect of adjustments, included in Income and mining tax benefit (expense), represents the tax effect of adjustments in footnotes (2) through (9), as described above, and are calculated using the applicable regional tax rate. (11) Valuation allowance and other tax adjustments, net, included in Income and mining tax benefit (expense), is recorded for items such as foreign tax credits, alternative minimum tax credits, capital losses, disallowed foreign losses, and the effects of changes in foreign currency exchange rates on deferred tax assets and deferred tax liabilities. The adjustment for the three and nine months ended September 30, 2021 is due to increases or (decreases) to net operating losses, tax credit carryovers and other deferred tax assets subject to valuation allowance of $185 and $215 respectively, the effects of changes in foreign exchange rates on deferred tax assets and liabilities of $(11) and $(28) respectively, changes to the reserve for uncertain tax positions of $(1) and $21 respectively, and other tax adjustments of $2 and $(17), respectively. Total amount is presented net of income (loss) attributable to noncontrolling interests of $(69) and $(74), respectively. (12) Adjusted net income (loss) has not been adjusted for cash care and maintenance costs, included in Care and maintenance, which represent costs incurred associated with our Tanami mine site being temporarily placed into care and maintenance in response to the COVID-19 pandemic during a portion of the three and nine months ended September 30, 2021. Cash care and maintenance costs were $6 and $8 during the three and nine months ended September 30, 2021, respectively. (13) Adjusted net income (loss) per diluted share is calculated using diluted common shares in accordance with U.S. GAAP. For the three months ended September 30, 2021, potentially dilutive shares of 1 million were excluded from the computation of diluted loss per common share attributable to Newmont stockholders in the Condensed Consolidated Statement of Operations as they were antidilutive. These shares were included in the computation of adjusted net income per diluted share for the three months ended September 30, 2021. DECEMBER 2021 INVESTOR PRESENTATION NEWMONT CORPORATION 42
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