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Newmont Announces Second Quarter 2022 Results

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Newmont delivers solid second quarter production and free cash flow results from leading portfolio of long-life, responsibly managed assets; updates full-year guidance

DENVER, July 25, 2022--(BUSINESS WIRE)--Newmont Corporation (NYSE: NEM, TSX: NGT) (Newmont or the Company) today announced second quarter 2022 results.

SECOND QUARTER 2022 RESULTS

  • Produced 1.5 million attributable ounces of gold and 330 thousand attributable gold equivalent ounces (GEO) from co-products, an increase of more than 130 thousand total gold equivalent ounces from the first quarter

  • Generated $1.0 billion of cash from continuing operations and $514 million of Free Cash Flow (97 percent attributable to Newmont)*

  • Reported gold Costs Applicable to Sales (CAS)* of $932 per ounce and All-In Sustaining Costs (AISC)* of $1,199 per ounce

  • Adjusted Net Income (ANI) of $0.46 per share and Adjusted EBITDA of $1,149, impacted by increasing costs and declining metal prices

  • Updated full-year guidance of 6.0 million ounces of attributable gold production, CAS of $900 per ounce and AISC of $1,150 per ounce; reaffirmed original guidance of 1.3 million gold equivalent ounces from copper, silver, lead and zinc with updated co-product cost guidance of $750 per GEO of CAS and $1,050 per GEO of AISC**

  • Updated full-year guidance for development capital spend to $1.1 billion; Provided trends on development capital costs and timeline related to Tanami Expansion 2 and Ahafo North

  • Declared second quarter dividend of $0.55 per share, consistent with the previous seven quarters***

  • $1 billion share repurchase program to be used opportunistically in 2022, with $475 million remaining***

  • Ended the quarter with $4.3 billion of consolidated cash and $7.3 billion of liquidity with a net debt to adjusted EBITDA ratio of 0.3x*

  • Advancing profitable near-term projects, including Tanami Expansion 2, Ahafo North and Yanacocha Sulfides

  • Completed acquisition of Sumitomo Corporation's 5 percent interest in Yanacocha, increasing ownership in Sulfides project to 100 percent

  • Maintained a clear focus on managing the critical controls that must be in place at all times to prevent fatalities; 155 thousand critical control verifications completed by leaders in the field

  • Published our 2021 Sustainability Reporting Suite, including our second Annual Climate Report, prepared in accordance with the Task Force for Climate Disclosure (TCFD) framework, detailing the pathway to achieve 2030 carbon emissions reduction targets and 2050 goal

"Newmont delivered a solid second quarter performance, producing 1.5 million gold ounces and generating $514 million in free cash flow. Through our industry-leading portfolio of assets and projects, our proven integrated operating model, our balanced and disciplined approach to capital allocation and our values-driven commitment to our purpose of creating value and improving lives through sustainable and responsible mining, Newmont remains well-positioned to safely manage through the evolving and unprecedented challenges that face our industry and the world at large."

- Tom Palmer, Newmont President and Chief Executive Officer

___________________________

*

Non-GAAP metrics; see reconciliations at the end of this release.

**

See discussion of outlook and cautionary statement at end of release regarding forward-looking statements.

***

See cautionary statement at the end of this release, including with respect to future dividends and share buybacks.

SECOND QUARTER 2022 FINANCIAL AND PRODUCTION SUMMARY

Q2'22

Q1'22

Q2'21

Average realized gold price ($ per ounce)

$

1,836

$

1,892

$

1,823

Attributable gold production (million ounces)

1.50

1.34

1.45

Gold costs applicable to sales (CAS) ($ per ounce)

$

932

$

890

$

755

Gold all-in sustaining costs (AISC) ($ per ounce)

$

1,199

$

1,156

$

1,035

GAAP net income from continuing operations ($ millions)

$

379

$

432

$

640

Adjusted net income ($ millions)

$

362

$

546

$

670

Adjusted EBITDA ($ millions)

$

1,149

$

1,390

$

1,591

Cash flow from continuing operations ($ millions)

$

1,033

$

689

$

993

Capital expenditures ($ millions)

$

519

$

437

$

415

Free cash flow ($ millions)

$

514

$

252

$

578

Attributable gold production1 increased 3 percent to 1,495 thousand ounces from the prior year quarter primarily due to higher ore grade milled at Boddington, Ahafo and Tanami and a draw-down of in-circuit inventory compared to a build in the prior year. In addition, the current quarter benefited from the increased ownership at Yanacocha due to the acquisition of Buenaventura's 43.65% ownership in February 2022. These increases were partially offset by lower ore grade milled and lower throughput at Peñasquito and Éléonore.

Gold CAS totaled $1.4 billion for the quarter. Gold CAS per ounce2 increased 23 percent to $932 per ounce from the prior year quarter primarily due to higher direct operating costs as a result of inflationary pressures, driven by higher labor costs and an increase in commodity inputs, including higher fuel and energy costs; as well as lower by-product credits at Yanacocha and a draw-down of higher cost in-circuit inventory compared to a build in the prior year. In addition, Gold CAS includes the allocation of $22 million for the Peñasquito profit-sharing agreement entered into during the second quarter of 2022 related to 2021 results.

Gold AISC per ounce3 increased 16 percent to $1,199 per ounce from the prior year quarter primarily due to higher CAS per ounce.

Attributable gold equivalent ounce (GEO) production from other metals increased 9 percent to 330 thousand ounces primarily due to higher ore grade milled at Boddington and higher mill recovery and throughput at Peñasquito.

CAS from other metals totaled $327 million for the quarter. CAS per GEO2 increased 56 percent to $983 per ounce from the prior year quarter primarily due to higher allocation of costs to other metals and higher direct operating costs as a result of inflationary pressures, driven by higher labor costs and an increase in commodity inputs, including higher fuel and energy costs. In addition, CAS from other metals includes the allocation of $48 million related to the Peñasquito profit-sharing agreement entered into during the second quarter of 2022 related to 2021 results.

AISC per GEO3 increased 45 percent to $1,286 per ounce primarily due to higher CAS per GEO and higher treatment and refining costs.

Average realized price for gold was $1,836, an increase of $13 per ounce over the prior year quarter. Average realized gold price includes $1,858 per ounce of gross price received, an unfavorable impact of $14 per ounce mark-to-market on provisionally-priced sales and reductions of $8 per ounce for treatment and refining charges.

Revenue remained flat at $3.1 billion compared to the prior year quarter as higher average realized gold prices and higher gold sales volumes were offset by lower average realized co-product metal prices.

Net income from continuing operations attributable to Newmont stockholders was $379 million or $0.48 per diluted share, a decrease of $261 million from the prior year quarter primarily due to higher CAS predominately resulting from the impacts of inflation and the Peñasquito profit-sharing agreement entered into during the second quarter of 2022, as well as unrealized losses on marketable and other equity securities. These decreases were partially offset by lower income tax expense.

Adjusted net income4 was $362 million or $0.46 per diluted share, compared to $670 million or $0.83 per diluted share in the prior year quarter. Primary adjustments to second quarter net income include changes in the fair value of investments and valuation allowance and other tax adjustments, including an $125 million tax settlement in Mexico.

Adjusted EBITDA5 decreased 28 percent to $1.1 billion for the quarter, compared to $1.6 billion for the prior year quarter.

Capital expenditures6 increased 25 percent from the prior year quarter to $519 million primarily due to higher development capital spend. Development capital expenditures in 2022 primarily include advancing Tanami Expansion 2, Yanacocha Sulfides, Ahafo North, Pamour and Cerro Negro District Expansion 1.

Consolidated operating cash flow from continuing operations increased 4 percent from the prior year quarter to $1.0 billion primarily due to a decrease in accounts receivable and increase in accounts payable due to the timing of receipts and payments to vendors, respectively, and a decrease in tax payments. These increases were partially offset by an increase in payments for reclamation and remediation obligations. Free Cash Flow7 decreased to $514 million from $578 million in the prior year quarter primarily due to higher development capital expenditures, partially offset by higher operating cash flow.

Balance sheet and liquidity ended the quarter with $4.3 billion of consolidated cash and approximately $7.3 billion of liquidity; reported net debt to adjusted EBITDA of 0.3x8.

Nevada Gold Mines (NGM) attributable gold production was 290 thousand ounces, with CAS of $1,035 per ounce and AISC of $1,263 per ounce for the second quarter. NGM EBITDA9 was $218 million.

Pueblo Viejo (PV) attributable gold production was 70 thousand ounces for the quarter. Cash distributions received for the Company's equity method investment in Pueblo Viejo totaled $48 million in the second quarter.

SECOND QUARTER 2022 EARNINGS DRIVERS

Compared to the first quarter of 2022, earnings were negatively impacted by higher labor, materials and consumables costs of approximately $80 million, higher fuel and energy costs of approximately $50 million and the $70 million expense recognized in the second quarter related to the Peñasquito profit-sharing agreement announced in early July. In addition, lower realized metals prices, including unfavorable mark-to-market adjustments on provisionally-priced sales, impacted earnings by approximately $225 million compared to the first quarter. These impacts were partially offset by approximately $250 million of higher sales volumes in the second quarter.

COVID UPDATE

Newmont continues to maintain wide-ranging protective measures for its workforce and neighboring communities, including screening, physical distancing, deep cleaning and avoiding exposure for at-risk individuals. The Company incurred incremental Covid specific costs of $10 million during the quarter for activities such as additional health and safety procedures, increased transportation and distributions from the Newmont Global Community Support Fund. The majority of the additional incremental Covid specific costs have not been adjusted from our non-GAAP metrics.

PROJECTS UPDATE10

Newmont’s project pipeline supports stable production with improving margins and mine life. Newmont's 2022 and longer-term outlook includes current development capital costs and production related to Tanami Expansion 2, Ahafo North, Yanacocha Sulfides, Pamour and Cerro Negro District Expansion 1. Additional projects not listed below represent incremental improvements to the Company's outlook.

  • Tanami Expansion 2 (Australia) secures Tanami’s future as a long-life, low-cost producer to extend mine life beyond 2040 through the addition of a 1,460 meter hoisting shaft and supporting infrastructure to process 3.3 million tonnes per year and provide a platform for future growth. The expansion is expected to increase average annual gold production by approximately 150,000 to 200,000 ounces per year for the first five years and reduce operating costs by approximately 10 percent. Development costs (excluding capitalized interest) since approval were $395 million, of which $111 million related to the six months ended June 30, 2022. Total capital costs are expected to be approximately 25% above the prior estimate, incorporating the significant impacts from Covid-related restrictions and protocols and the current market conditions for labor and materials. Commercial production for the project is now expected to be in early 2025. Formal updates to capital estimates and estimated project completion will be provided later in the year.

  • Ahafo North (Africa) expands our existing footprint in Ghana with four open pit mines and a stand-alone mill located approximately 30 kilometers from the Company’s Ahafo South operations. The project is expected to add between 275,000 and 325,000 ounces per year for the first five full years of production. Ahafo North is the best unmined gold deposit in West Africa with approximately 3.5 million ounces of Reserves and more than 1 million ounces of Measured, Indicated and Inferred Resources and significant upside potential to extend beyond Ahafo North’s current 13-year mine life. Development costs (excluding capitalized interest) since approval were $142 million, of which $75 million related to the six months ended June 30, 2022. Total capital costs are expected to be approximately 15% above the prior estimate, incorporating the cost associated with delayed land access. Commercial production for the project is now expected to be in mid-2025. Formal updates to capital estimates and estimated project completion will be provided later in the year.

  • Yanacocha Sulfides (South America) will develop the first phase of sulfide deposits and an integrated processing circuit, including an autoclave to produce 45% gold, 45% copper and 10% silver. The project is expected to add average annual production of 525,000 gold equivalent ounces per year for the first five full years (2027-2031). Total capital costs for the project are estimated at $2.5 billion from the investment decision date, expected in late 2022, with a three year development period. The first phase focuses on developing the Yanacocha Verde and Chaquicocha deposits to extend Yanacocha’s operations beyond 2040 with second and third phases having the potential to extend life for multiple decades.

  • Pamour (North America) extends the life of Porcupine and maintains production beginning in 2024. The project will optimize mill capacity, adding volume and supporting high grade ore from Borden and Hoyle Pond, while supporting further exploration in a highly prospective and proven mining district. An investment decision is expected in the second half of 2022 with estimated capital costs between $350 and $450 million.

  • Cerro Negro District Expansion 1 (South America) includes the simultaneous development of the Marianas and Eastern districts to extend the mine life of Cerro Negro beyond 2030. The project is expected to improve production to above 350,000 ounces beginning in 2024. Development capital costs for the project are estimated to be approximately $300 million. This project provides a platform for further exploration and future growth through additional expansions.

________________________________________________

1

Attributable gold production for the second quarter 2022 includes 70 thousand ounces from the Company’s equity method investment in Pueblo Viejo (40%).

2

Non-GAAP measure. See end of this release for reconciliation to Costs applicable to sales.

3

Non-GAAP measure. See end of this release for reconciliation to Costs applicable to sales.

4

Non-GAAP measure. See end of this release for reconciliation to Net income (loss) attributable to Newmont stockholders.

5

Non-GAAP measure. See end of this release for reconciliation to Net income (loss) attributable to Newmont stockholders.

6

Capital expenditures refers to Additions to property plant and mine development from the Condensed Consolidated Statements of Cash Flows.

7

Non-GAAP measure. See end of this release for reconciliation to Net cash provided by operating activities.

8

Non-GAAP measure. See end of this release for reconciliation.

9

Non-GAAP measure. See end of this release for reconciliation.

10

Project estimates remain subject to change based upon uncertainties, including future impacts of Covid-19 and other cost pressures, supply chain disruptions and availabilities, commodity price volatility and other factors, which may impact estimated capital expenditures, AISC and timing of projects. See end of this release for cautionary statement regarding forward-looking statements.

UPDATED OUTLOOK

Newmont is providing updated 2022 outlook due to impacts on gold production estimates in the first half of the year, as well as the continued impact from inflationary pressures on costs. Please see the cautionary statement in the end notes for additional information. For further discussion, investors are encouraged to attend Newmont’s Second Quarter 2022 Earnings Conference Call.

Newmont's updated 2022 outlook includes 6.0 million ounces of attributable gold production and 1.3 million gold equivalent ounces from copper, silver, lead and zinc. The revised outlook for attributable gold production includes negative impacts from operational challenges at Ahafo, a transition to a leach-only operation at CC&V, as well as challenges from a competitive labor market, primarily in Canada and Australia.

Ahafo experienced challenges due to labor availability and supply chain disruptions impacting the delivery of new equipment and critical spares, which affected our ability to ramp-up mining rates at Subika Underground. As a result, Ahafo's full-year production was reduced by approximately 80 thousand ounces. The CC&V operation has begun the transition to a higher-value, longer-life leach-only operation, resulting in a reduction in full-year production of approximately 40 thousand ounces. In addition, Newmont continues to experience lower productivity as a result of a competitive labor market in Canada in Australia, resulting in full-year production impacts of approximately 50 thousand ounces and 30 thousand ounces in those regions, respectively.

Updated 2022 CAS outlook is expected to be $900 per gold ounce and $750 per co-product gold equivalent ounce. Updated 2022 AISC outlook is expected to be $1,150 per gold ounce and $1,050 per co-product gold equivalent ounce. The revised outlook includes the impact from lower production volumes and higher direct operating costs related to labor, energy, consumables and supplies as a result of sustained inflationary pressures.

Development capital is expected to be $1.1 billion for 2022 to incorporate delays in spending at Yanacocha Sulfides and Ahafo North.

General and administrative expense is expected to be $270 million, incorporating slight increases in labor costs due to inflationary pressures. Interest expense is expected to be $200 million, a reduction of $25 million following the timely refinancing of our 2022 and 2023 notes in December of last year.

Newmont 2022 Outlook a

Updated
(as of July 25, 2022)

Previous
(as of Dec. 2, 2021)

Consolidated Gold Production (Moz)

5.9

6.1

Attributable Gold Production (Moz) b

6.0

6.2

Consolidated Gold CAS ($/oz)

900

820

Consolidated Gold AISC($/oz) c

1,150

1,050

Consolidated Co-Product GEO Production (Moz) d

1.3

1.3

Attributable Co-Product GEO Production (Moz) d

1.3

1.3

Consolidated Co-Product GEO CAS ($/oz) d

750

675

Consolidated Co-Product GEO AISC ($/oz) c,d

1,050

975

Consolidated Total GEO Production (Moz) d

7.2

7.4

Attributable Total GEO Production (Moz) d

7.3

7.5

Consolidated Total GEO CAS ($/oz) d

875

800

Consolidated Total GEO AISC ($/oz) c,d

1,130

1,030

Consolidated Sustaining Capital Expenditures ($M)

1,000

1,000

Consolidated Development Capital Expenditures ($M)

1,100

1,400

Attributable Sustaining Capital Expenditures ($M)

925

925

Attributable Development Capital Expenditures ($M) e

1,100

1,400

General & Administrative ($M)

270

260

Interest Expense ($M)

200

225

Depreciation and Amortization ($M)

2,300

2,300

Exploration & Advanced Projects ($M)

450

450

Adjusted Tax Rate f,g

30% - 34%

30% - 34%

a

2022 outlook projections are considered forward-looking statements and represent management’s good faith estimates or expectations of future production results as of July 25, 2022. Outlook is based upon certain assumptions, including, but not limited to, metal prices, oil prices, certain exchange rates and other assumptions. For example, updated 2022 Outlook includes actual results through June 30, 2022 and assumes $1,800/oz Au, $4.10/lb Cu, $21.00/oz Ag, $1.60/lb Zn, $0.95/lb Pb, $0.74 USD/AUD exchange rate, $0.80 USD/CAD exchange rate and $110/barrel WTI for the second half of 2022. Production, CAS, AISC and capital estimates exclude projects that have not yet been approved, except for Yanacocha Sulfides, Pamour and Cerro Negro District Expansion 1 which are included in Outlook. The potential impact on inventory valuation as a result of lower prices, input costs, and project decisions are not included as part of this Outlook. Assumptions used for purposes of Outlook may prove to be incorrect and actual results may differ from those anticipated, including variation beyond a +/-5% range. Outlook cannot be guaranteed. As such, investors are cautioned not to place undue reliance upon Outlook and forward-looking statements as there can be no assurance that the plans, assumptions or expectations upon which they are placed will occur. Amounts may not recalculate to totals due to rounding. See cautionary at the end of this release.

b

Attributable gold production outlook includes the Company’s equity investment (40%) in Pueblo Viejo with ~285Koz in 2022; does not include the Company’s other equity investments. Attributable gold production outlook represents the Company's 75% interest in Merian.

c

All-in sustaining costs (AISC) as used in the Company’s Outlook is a non-GAAP metric; see below for further information and reconciliation to consolidated 2022 CAS outlook.

d

Gold equivalent ounces (GEO) is calculated as pounds or ounces produced multiplied by the ratio of the other metal’s price to the gold price, using Gold ($1,200/oz.), Copper ($3.25/lb.), Silver ($23.00/oz.), Lead ($0.95/lb.), and Zinc ($1.15/lb.) pricing.

e

Attributable development capital accounts for the acquisition of the remaining interest in Yanacocha, including Buenaventura's 43.65% interest and Sumitomo Corporation's 5% interest, as announced on February 8, 2022 and April 12, 2022, respectively.

f

The adjusted tax rate excludes certain items such as tax valuation allowance adjustments.

g

Assuming average prices of $1,800 per ounce for gold, $3.25 per pound for copper, $23.00 per ounce for silver, $0.95 per pound for lead, and $1.15 per pound for zinc and achievement of current production and sales volumes and cost estimates, we estimate our consolidated adjusted effective tax rate related to continuing operations for 2022 will be between 30%-34%.

Three Months Ended June 30,

Six Months Ended June 30,

Operating Results

2022

2021

% Change

2022

2021

% Change

Attributable Sales (koz)

Attributable gold ounces sold (1)

1,455

1,383

5

%

2,746

2,744

%

Attributable gold equivalent ounces sold

333

302

10

%

683

629

9

%

Average Realized Price ($/oz, $/lb)

Average realized gold price

$

1,836

$

1,823

1

%

$

1,863

$

1,788

4

%

Average realized copper price

$

2.99

$

4.37

(32

) %

$

3.81

$

4.30

(11

) %

Average realized silver price

$

17.42

$

23.00

(24

) %

$

18.85

$

21.27

(11

) %

Average realized lead price

$

0.80

$

1.02

(22

) %

$

0.94

$

0.95

(1

) %

Average realized zinc price

$

1.08

$

1.34

(19

) %

$

1.47

$

1.19

24

%

Attributable Production (koz)

North America

316

397

(20

) %

625

810

(23

) %

South America

210

189

11

%

408

363

12

%

Australia

366

299

22

%

648

568

14

%

Africa

243

202

20

%

441

407

8

%

Nevada

290

284

2

%

578

587

(2

) %

Total Gold (excluding equity method investments)

1,425

1,371

4

%

2,700

2,735

(1

) %

Pueblo Viejo (40%) (2)

70

78

(10

) %

139

169

(18

) %

Total Gold

1,495

1,449

3

%

2,839

2,904

(2

) %

North America

266

260

2

%

565

545

4

%

Australia

64

43

49

%

115

75

53

%

Total Gold Equivalent Ounces

330

303

9

%

680

620

10

%

CAS Consolidated ($/oz, $/GEO)

North America

$

1,124

$

769

46

%

$

1,061

$

752

41

%

South America

$

982

$

721

36

%

$

952

$

753

26

%

Australia

$

710

$

764

(7

) %

$

734

$

757

(3

) %

Africa

$

838

$

763

10

%

$

853

$

760

12

%

Nevada

$

1,035

$

753

37

%

$

967

$

749

29

%

Total Gold

$

932

$

755

23

%

$

912

$

754

21

%

Total Gold (by-product)

$

926

$

586

58

%

$

818

$

595

37

%

North America

$

1,054

$

586

80

%

$

864

$

550

57

%

Australia

$

710

$

898

(21

) %

$

765

$

913

(16

) %

Total Gold Equivalent Ounces

$

983

$

629

56

%

$

846

$

590

43

%

AISC Consolidated ($/oz, $/GEO)

North America

$

1,437

$

985

46

%

$

1,336

$

971

38

%

South America

$

1,203

$

1,022

18

%

$

1,164

$

1,041

12

%

Australia

$

873

$

997

(12

) %

$

917

$

1,048

(13

) %

Africa

$

1,017

$

1,000

2

%

$

1,057

$

974

9

%

Nevada

$

1,263

$

985

28

%

$

1,176

$

924

27

%

Total Gold

$

1,199

$

1,035

16

%

$

1,179

$

1,037

14

%

Total Gold (by-product)

$

1,261

$

918

37

%

$

1,155

$

935

24

%

North America

$

1,349

$

761

77

%

$

1,140

$

762

50

%

Australia

$

829

$

1,113

(26

) %

$

895

$

1,231

(27

) %

Total Gold Equivalent Ounces

$

1,286

$

886

45

%

$

1,138

$

851

34

%

1

Attributable gold ounces from the Pueblo Viejo mine, an equity method investment, are not included in attributable gold ounces sold.

2

Represents attributable gold from Pueblo Viejo and does not include the Company's other equity method investments. Attributable gold ounces produced at Pueblo Viejo are not included in attributable gold ounces sold, as noted in footnote 1. Income and expenses of equity method investments are included in Equity income (loss) of affiliates.

NEWMONT CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited, in millions except per share)

Three Months Ended
June 30,

Six Months Ended
June 30,

2022

2021

2022

2021

Sales

$

3,058

$

3,065

$

6,081

$

5,937

Costs and expenses

Costs applicable to sales (1)

1,708

1,281

3,143

2,528

Depreciation and amortization

559

561

1,106

1,114

Reclamation and remediation

49

57

110

103

Exploration

62

52

100

87

Advanced projects, research and development

45

37

89

68

General and administrative

73

64

137

129

Other expense, net

22

52

57

91

2,518

2,104

4,742

4,120

Other income (expense):

Other income (loss), net

(75

)

50

(184

)

11

Interest expense, net of capitalized interest

(57

)

(68

)

(119

)

(142

)

(132

)

(18

)

(303

)

(131

)

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

408

943

1,036

1,686

Income and mining tax benefit (expense)

(33

)

(341

)

(247

)

(576

)

Equity income (loss) of affiliates

17

49

56

99

Net income (loss) from continuing operations

392

651

845

1,209

Net income (loss) from discontinued operations

8

10

24

31

Net income (loss)

400

661

869

1,240

Net loss (income) attributable to noncontrolling interests

(13

)

(11

)

(34

)

(31

)

Net income (loss) attributable to Newmont stockholders

$

387

$

650

$

835

$

1,209

Net income (loss) attributable to Newmont stockholders:

Continuing operations

$

379

$

640

$

811

$

1,178

Discontinued operations

8

10

24

31

$

387

$

650

$

835

$

1,209

Weighted average common shares (millions):

Basic

794

801

793

801

Effect of employee stock-based awards

1

2

2

...