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
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