Investor Presentaiton
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 analysts 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
Three Months Ended
December 31, 2022
Year Ended
December 31, 2022
(1)
Per share measures may not recalculate due to rounding.
(2)
per share data (1)
basic
diluted
per share data (1)
basic diluted
(3)
Net income (loss) attributable to Newmont
stockholders
$ (1,477)
$
(1.86) $ (1.86)
$
(429) $ (0.54) $ (0.54)
45
(4)
(5)
Net loss (income) attributable to Newmont
stockholders from discontinued operations (2)
(11)
(0.01)
(0.01)
(30)
(0.04)
(0.04)
(6)
Net income (loss) attributable to Newmont
stockholders from continuing operations
Impairment charges (4)
(1,488)
(1.87)
(1.87)
(459)
(0.58)
(0.58)
(7)
1,317
1.66
1.66
1,320
1.66
1.66
(8)
Reclamation and remediation charges, net (5)
700
0.88
0.88
713
0.90
0.90
Pension settlements (6)
7
0.01
0.01
137
0.17
0.17
(9)
Change in fair value of investments (7)
(45)
(0.06)
(0.06)
46
0.06
0.06
Gain on asset and investment sales (8)
(61)
(0.08)
(0.08)
(35)
(0.04)
Settlement costs (9)
2
22
0.03
Restructuring and severance (10)
1
4
0.01
(0.04)
0.03
0.01
COVID-19 specific costs (11)
2
3
Other (12)
(3)
(21)
(0.03)
Tax effect of adjustments (13)
(283)
(0.35)
(0.35)
(344)
(0.44)
(0.03)
(0.44)
Valuation allowance and other tax
adjustments, net (14)
199
$
0.25
348 $ 0.44 $ 0.44
0.25
82
$ 1,468 $
0.11
0.11
1.85 $ 1.85
Weighted average common shares (millions): (3)
794
795
794
795
For additional information regarding our discontinued operations, see Note 1 to our Consolidated Financial Statements.
Adjusted net income (loss) per diluted share is calculated using diluted common shares, which are calculated in accordance
with U.S. GAAP. For the year ended December 31, 2022, potentially dilutive shares of 1 million were excluded from the
computation of diluted loss per common share attributable to Newmont stockholders in the Consolidated Statement of
Operations as they were antidilutive. These shares were included in the computation of adjusted net income per diluted
share for the year ended December 31, 2022.
Impairment charges, included in Impairment charges represents non-cash write-downs of long-lived assets and goodwill.
Reclamation and remediation charges, net, included in Reclamation and remediation, represent revisions to the reclamation
and remediation plans and cost estimates at the Company's former operating properties and historic mining operations that
have entered the closure phase and have no substantive future economic value.
Pension settlements, included in Other income (loss), net, represents pension settlement charges related to the annuitization
of certain defined benefit plans.
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.
Gain on asset and investment sales, included in Gain on asset and investment sales, net, primarily represents gains recognized
on the sale of the investment in MARA, the disposal of trucks at Boddington and the sale of a royalty at NGM, partially offset
by the loss recognized on the sale of the La Zanja equity method investment for the year ended 2022.
Settlement costs, included in Other expense, net, primarily represents a legal settlement and a voluntary contribution made
to support humanitarian efforts in Ukraine.
(10) 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.
(11) COVID-19 specific costs, included in Other expense, net, represents 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 $2 and $35, 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.
(12) Primarily represents for the year ended, an $11 reimbursement of certain historical Goldcorp operational expenses related
to a legacy project that reached commercial production in the second quarter of 2022 and $7 of penalty income from an
energy vendor early terminating a contract in 2022, included Other income (loss), net.
(13) The tax effect of adjustments, included in Income and mining tax benefit (expense), represents the tax effect of adjustments
in footnotes (4) through (12), as described above, and are calculated using the applicable regional tax rate.
(14) 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
months and the year ended December 31, 2022, reflects the net increase or (decrease) to net operating losses, capital
losses, tax credit carryovers, and other deferred tax assets subject to valuation allowance of $178 and $246, respectively, the
expiration of U.S. foreign tax credit carryovers of $31 and $31, respectively, the effects of changes in foreign exchange rates
on deferred tax assets and liabilities of $(38) and $(86), respectively, net removal to the reserve for uncertain tax positions of
$5 and $(8), respectively, a tax settlement in Mexico of $- and $(125), respectively, and other tax adjustments of $23 and
$24, respectively. Total amount is presented net of income (loss) attributable to noncontrolling interests of $199 and $82,
respectively.
FEBRUARY 2023 INVESTOR PRESENTATION
NEWMONT CORPORATION
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