Newmont Mining Corporation (NYSE: NEM) (Newmont or the Company) announced third quarter results, including $813 million in operating cash flow, and $758 million in adjusted earnings before interest, taxes, depreciation and amortization (Adjusted EBITDA)1.

  • Net income: Achieved GAAP net income attributable to shareholders from continuing operations of $202 million, or $0.38 per share, compared to $210 million or $0.42 per share in the prior year quarter; adjusted net income2 was $126 million, or $0.23 per share, compared to $249 million or $0.50 per share in the prior year quarter
  • Consolidated Adjusted EBITDA: Delivered Adjusted EBITDA of $758 million in the third quarter, compared to $455 million in the prior year quarter
  • Consolidated cash flow: Generated cash from continuing operations of $813 million compared to $328 million in the prior year quarter and free cash flow3 from continuing operations of $478 million, compared to $51 million in the prior year quarter
  • All-in sustaining costs (AISC)4: Improved gold AISC to $835 per ounce compared with $995 per ounce in the prior year quarter, and copper AISC to $1.54 per pound compared to $6.61 per pound in the prior year quarter
  • Costs applicable to sales (CAS): Improved gold CAS to $608 per ounce compared with $705 per ounce in the prior year quarter, and copper CAS to $1.15 per pound compared to $5.73 per pound in the prior year quarter
  • Attributable production: Delivered 1.34 million ounces and 48,000 tonnes of attributable gold and copper production, respectively, compared to 1.15 million ounces and 13,000 tonnes, respectively, in the prior year quarter
  • Outlook: Improved 2015 cost outlook5 as a result of cost and efficiency improvements, favorable oil prices and Australian dollar exchange rates, and some delayed spend; expect AISC of between $880 and $940 per ounce, and CAS of between $620 and $660 per ounce; attributable gold production maintained at between 4.7 and 5.1 million ounces
  • Portfolio: Recently approved Tanami Expansion project reduces Tanami overall costs and improves Tanami production to between 425,000 and 475,000 ounces per year (first five years of expansion)
  • Shareholder returns: Maintained third quarter dividend of $0.025 per share6

“We delivered a 16 percent reduction in all-in sustaining costs and generated $758 million in adjusted EBITDA and $478 million in free cash flow – despite lower metal prices – through a sustained focus on improving costs and efficiency. The Cripple Creek & Victor integration process is underway and we are moving forward with our Tanami Expansion project in Australia, which is expected to generate an IRR of more than 35% in the current metal price environment. The project involves building a second decline in the underground mine and incremental capacity in the plant to increase profitable production and extend mine life,” said Gary Goldberg, President and Chief Executive Officer.

_______________________________________

1 Non-GAAP measure. See end of release for reconciliation.
2 Non-GAAP measure. Based on fully diluted shares outstanding. See end of release for reconciliation to net income.
3 Non-GAAP measure. See end of release for reconciliation.
4 Non-GAAP measure. See end of release for reconciliation.
5 Outlook constitutes forward-looking statements, which are subject to risk and uncertainties. See Cautionary Note.
6 Such policy is non-binding. Declaration of future dividends remains subject to approval and discretion of the Board of Directors.

Third Quarter Summary Results

GAAP net income attributable to shareholders from continuing operations was $202 million, or $0.38 per share, compared to $210 million or $0.42 per share a year ago. Adjusted net income was $126 million, or $0.23 per share, down from $249 million or $0.50 per share in the prior year quarter.

Consolidated cash flow from continuing operations was $813 million in the third quarter, compared to $328 million in the prior year quarter, as higher production, sales volumes and cost improvements more than offset the impact of lower metal prices. Free cash flow was $478 million in the third quarter, more than nine times the free cash flow of the prior year quarter.

Gold and copper AISC was $835 per ounce and $1.54 per pound, respectively, compared with $995 per ounce and $6.61 per pound, respectively, in the prior year quarter. Gold and copper CAS were $608 per ounce and $1.15 per pound, respectively, compared with $705 per ounce and $5.73 per pound, respectively, in the third quarter of 2014. Unit costs benefitted from ongoing cost and efficiency improvements, lower fuel prices and favorable Australian dollar exchange rates, and improved sales volumes, particularly at Batu Hijau, Boddington and Tanami.

Revenue totaled $2.0 billion compared to $1.7 billion in the third quarter of 2014 as higher production and sales volumes at Batu Hijau, Boddington and Tanami more than offset lower metal prices. During the third quarter of 2015, Batu Hijau mined higher grade ore and operated and shipped at full capacity. The prior year quarter was impacted by a temporary export ban.

Average net realized gold and copper price was $1,104 per ounce and $1.95 per pound, respectively, compared with $1,270 per ounce and $2.71 per pound, respectively, in the prior year quarter.

Attributable gold production totaled 1.34 million ounces, up 16% from the prior year quarter due to higher production at Batu Hijau, Tanami and Boddington, and the addition of Cripple Creek & Victor. Boddington production benefited from improved mill utilization as a result of Full Potential and higher grades. Tanami production was up from the prior year quarter due to higher grade ore and improved throughput. Including the pending sale of Waihi, Newmont has generated approximately $1.7 billion in fair value asset sales since 2013 while maintaining attributable gold production.

Attributable copper production totaled 48,000 tonnes compared to 13,000 tonnes in the year ago period due to higher grade ore at Batu Hijau.

Capital expenditures for the third quarter were $335 million, including $172 million of sustaining capital. Development capital was higher than the prior year primarily due to the construction of Merian in Suriname and Long Canyon Phase 1 in Nevada. Sustaining capital was lower year to date due to timing and continued cost improvements, resulting in a reduction of the full year forecast spend of about 13%. Long-term sustaining capital guidance remains at between $850 and $950 million.

                     
Three Months Ended September 30, Nine Months Ended September 30,
      2015     2014     % Change       2015     2014     % Change    
Attributable Sales (koz, Mlbs)
Attributable gold ounces sold 1,317 1,142 15 % 3,668 3,491 5 %
Attributable copper pounds sold 98 39 151 % 264 110 140 %
 
Average Realized Price ($/oz, $/lb)
Average realized gold price $ 1,104 $ 1,270 (13 ) % $ 1,159 $ 1,282 (10 ) %
Average realized copper price $ 1.95 $ 2.71 (28 ) % $ 2.21 $ 2.75 (20 ) %
 
Attributable Production (koz, kt)
North America 434 428 1 % 1,216 1,235 (2 ) %
South America 141 136 4 % 411 364 13 %
Asia Pacific 572 377 52 % 1,558 1,310 19 %
Africa       193       213     (9 ) %     604       675     (11 ) %
Total Gold       1,340       1,154     16   %     3,789       3,584     6   %
 
North America 5 5 - % 16 16 - %
Asia Pacific       43       8     438   %     111       42     164   %
Total Copper       48       13     269   %     127       58     119   %
 
CAS Consolidated ($/oz, $/lb)
North America $ 750 $ 773 (3 ) % $ 734 $ 760 (3 ) %
South America 615 507 21 % 566 830 (32 ) %
Asia Pacific 533 913 (42 ) % 602 814 (26 ) %
Africa       527       436     21   %     488       444     10   %
Total Gold     $ 608     $ 705     (14 ) %   $ 618     $ 733     (16 ) %
 
North America $ 1.95 $ 2.13 (8 ) % $ 1.91 $ 2.28 (16 ) %
Asia Pacific       1.08       6.77     (84 ) %     1.16       4.24     (73 ) %
Total Copper     $ 1.15     $ 5.73     (80 ) %   $ 1.22     $ 3.75     (67 ) %
 
AISC Consolidated ($/oz, $/lb)
North America $ 955 $ 1,030 (7 ) % $ 942 $ 1,007 (6 ) %
South America 907 778 17 % 860 1,159 (26 ) %
Asia Pacific 661 1,131 (42 ) % 745 1,002 (26 ) %
Africa       723       549     32   %     688       619     11   %
Total Gold     $ 835     $ 995     (16 ) %   $ 864     $ 1,031     (16 ) %
 
North America $ 2.43 $ 2.73 (11 ) % $ 2.28 $ 2.83 (19 ) %
Asia Pacific       1.46       7.68     (81 ) %     1.55       5.38     (71 ) %
Total Copper     $ 1.54     $ 6.61     (77 ) %   $ 1.61     $ 4.74     (66 ) %
 

2015 OUTLOOK

Newmont’s revised 2015 CAS and AISC outlook are down 2% and 4%, respectively, driven by a reduction in Asia Pacific and Africa region costs compared to previous guidance as well as lower than expected inventory costs at CC&V. Asia Pacific costs are lower than previous estimates primarily due to cost and efficiency improvements and some delayed spend, as well as lower oil prices and Australian dollar exchange rates. Africa cost outlook for 2015 is improved mostly due to better than expected power and diesel prices and Full Potential savings.

2015 gold production guidance is unchanged as better than expected production at Boddington and Akyem offset lower production at CC&V due to a slower mill ramp-up. This is not expected to impact long-term production. 2015 outlook for copper production remains unchanged.

The updated 2015 outlook includes reduced capital spending at all regions primarily due to cost savings and some delayed spend, partially offset by additional capital spend for the recently approved Tanami Expansion project.

Newmont will update long-term guidance in conjunction with the investor day to be held December 3, 2015.

Debt – Year-to-date, Newmont has paid $200 million toward its existing term loan and $130 million toward project debt in Ghana and Indonesia. Newmont will continue to analyze opportunities to pay our liabilities in advance, and could potentially repay up to a total of $750 million dollars by year end from cash flow and existing cash balances.

Projects Update

The Turf Vent Shaft is expected to achieve commercial production in the fourth quarter of 2015, adding approximately 100,000 to 150,000 ounces of annual production to Carlin’s Leeville underground mine. The shaft provides ventilation required to increase production and decrease mine costs over the 11 year mine life at Leeville. Total development costs for the project are estimated at between $300 and $350 million with approximately $60 to $70 million spent in 2015.

The Cripple Creek & Victor (CC&V) acquisition closed on August 3, 2015 and successful integration is underway. CC&V is expected to lower Newmont’s overall cost profile with expected cost applicable to sales and all-in sustaining cost to be updated for purchase price allocation later this year. Gold production is expected to average between 350,000 and 400,000 ounces in 2016 and 2017. Total development capital costs to complete the expansion are approximately $200 million, with between $50 and $60 million to be spent in 2015.

Merian is progressing on schedule and below budget. Merian will give Newmont a foothold in a prospective new district with significant upside potential. Gold production is expected to average between 400,000 and 500,000 ounces on a 100 percent basis during the first five years at a cost applicable to sales of $575 to $675 per ounce, and all-in sustaining cost of between $650 and $750 per ounce. Capital costs for the project are estimated at between $600 and $650 million for Newmont’s 75 percent share. Newmont’s capital expenditure is expected to be between $290 million and $330 million in 2015 and between $170 million and $210 million in 2016. The project is scheduled for start-up in the second half of 2016.

Long Canyon Phase 1 is expected to achieve commercial production in the first half of 2017. This first phase of development consists of an open pit mine and heap leach operation with production of between 100,000 and 150,000 ounces per year over an eight year mine life. Estimated average costs applicable to sales are expected to be between $400 and $500 per ounce and all-in sustaining costs of between $500 and $600 per ounce over the life of the mine, in the first quartile for gold production. Total capital costs for the project are estimated at between $250 and $300 million allocated roughly evenly in 2015 and 2016 with minimal spending in 2017.

Tanami Expansion includes constructing a second decline in the mine and building incremental capacity in the plant to increase profitable production and serve as a platform for exploration drilling to support future expansion. The expansion improves Tanami gold production to between 425,000 and 475,000 ounces per year at all-in sustaining costs of between $700 and $750 per ounce (for the first five years of the expansion) and increases mine life by three years. Capital costs for the project are estimated at between $100 and $120 million with about half of the capital spent in 2016 with the remaining allocated between 2015 and 2017. Additional production is expected to come on line in 2017.

The Ahafo Mill Expansion represents additional upside not currently included in 2015 outlook.

The Ahafo Mill Expansion would increase profitable production by 100,000 to 125,000 ounces (first five year average) while lowering costs and off-setting the impacts of lower grades and harder ore. Capital costs are expected to be between $140 and $160 million. The Ahafo Mill Expansion is expected to be reviewed with Subika Underground in mid to late 2016. If approved in 2016, additional production would be expected in 2018.

                 
Consolidated Attributable Consolidated

Consolidated
All-in
Sustaining

Consolidated
Total Capital

2015 Outlooka Production Production CAS Costsb Expenditures
    (kozs, kt)     (kozs, kt)     ($/oz, $/lb)     ($/oz, $/lb)     ($M)
North America
Carlin 850 - 910 850 - 910 $840 - $900 $1,090 - $1,170 $250 - $270
Phoenixc 200 - 220 200 - 220 $760 - $820 $900 - $960 $20 - $30
Twin Creeksd 410 - 440 410 - 440 $530 - $570 $700 - $750 $50 - $60
CC&Ve 80 - 100 80 - 100 $560 - $600 $720 - $760 $50 - $60
Long Canyon $130 - $150
Other North America                                           $10 - $20
Total 1,540 - 1,670 1,540 - 1,670 $730 - $780 $940 - $1,010 $510 - $590
 
South America
Yanacochaf 880 - 940 450 - 490 $550 - $590 $870 - $930 $90 - $110
Merian                                           $400 - $420
Total 880 - 940 450 - 490 $550 - $590 $950 - $1,020 $490 - $530
 
Asia Pacific
Boddington 730 - 780 730 - 780 $675 - $725 $780 - $830 $55 - $65
Tanami 410 - 450 410 - 450 $530 - $570 $750 - $800 $100 - $110
Waihig 107 107 $463 $544 $11
Kalgoorlieh 310 - 340 310 - 340 $810 - $870 $930 - $1,000 $20 - $30
Other Asia Pacific $5 - $10
Batu Hijauj   640 - 690     310 - 340     $410 - $440     $550 - $580     $80 - $90
Total 2,180 - 2,370 1,850 - 2,020 $590 - $630 $740 - $790 $260 - $310
 
Africa
Ahafo 300 - 330 300 - 330 $610 - $650 $910 - $980 $80 - $100
Akyem   450 - 480     450 - 480     $440 - $470     $590 - $630     $45 - $55
Total 750 - 810 750 - 810 $500 - $550 $740 - $790 $125 - $155
 
Equity Productioni 110 - 130
Corporate/Other                                           $30 - $40
Total Gold   5,350 - 5,790     4,700 - 5,120     $620 - $660     $880 - $940     $1,415 - $1,625
 
Phoenix 15 - 25 15 - 25 $2.10 - $2.30 $2.50 - $2.70
Boddington 25 - 35 25 - 35 $1.70 - $1.90 $2.10 - $2.30
Batu Hijauj   210 - 230     100 - 120     $1.00 - $1.20     $1.40 - $1.60          
Total Copper   250 - 290     140 - 180     $1.20 - $1.40     $1.50 - $1.70          
         
Consolidated Expense Outlookk
General & Administrative $ 170 - $ 190
Other Expense $ 125 - $ 150
Interest Expense $ 310 - $ 330
DD&A $ 1,160 - $ 1,240
Exploration and Projects $ 280 - $ 310
Sustaining Capital $ 740 - $ 780
Tax Rate         33%   -     37%
 

a2015 Outlook projections used in this release (“Outlook”) are considered “forward-looking statements” and represent management’s good faith estimates or expectations of future production results as of the date hereof. Outlook is based upon certain assumptions, including, but not limited to, metal prices, oil prices, certain exchange rates and other assumptions. For example, 2015 Outlook assumes $1,100/oz Au, $2.50/lb Cu, $0.75 USD/AUD exchange rate and $65/barrel WTI for the remaining period. AISC and CAS cost estimates do not include inflation. Such assumptions may prove to be incorrect and actual results may differ materially from those anticipated. Consequently, 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.
bNon-GAAP measure. All-in sustaining costs as used in the Company’s Outlook is a non-GAAP metric defined as the sum of cost applicable to sales (including all direct and indirect costs related to current gold production incurred to execute on the current mine plan), remediation costs (including operating accretion and amortization of asset retirement costs), G&A, exploration expense, advanced projects and R&D, treatment and refining costs, other expense, net of one-time adjustments and sustaining capital.
cIncludes Lone Tree operations.
dIncludes TRJV operations.
eCC&V 2015 outlook includes 5 months of operations; acquisition closed early August 2015. Investors are cautioned that CC&V outlook remains subject to further review by management as integration continues, and CC&V 2015 CAS and AISC estimates remain subject to various factors, including potential adjustment in connection with purchase price allocation.
fConsolidated production for Yanacocha is presented on a total production basis for the mine site; attributable production represents a 51.35% interest.
gWaihi 2015 outlook assumes divestiture closes on October 30, 2015.
hBoth consolidated and attributable production are shown on a pro-rata basis with a 50% ownership for Kalgoorlie.
iLa Zanja and Duketon are not included in the consolidated figures above; attributable production figures are presented based upon a 46.94% ownership interest at La Zanja and a 19.45% ownership interest in Duketon.
jConsolidated production for Batu Hijau is presented on a total production basis for the mine site; whereas attributable production represents a 48.5% ownership interest in 2015 outlook. Outlook for Batu Hijau remains subject to various factors, including, without limitation, renegotiation of the CoW, issuance of future export approvals, negotiations with the labor union, future in-country smelting availability and regulations relating to export quotas, and certain other factors.
kConsolidated expense outlook is adjusted to exclude extraordinary items. For example, the tax rate outlook above is a consolidated adjusted rate, which assumes the exclusion of certain tax valuation allowance adjustments.

               

NEWMONT MINING CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(unaudited, in millions except per share)

 
Three Months Ended Nine Months Ended
September 30, September 30,
2015 2014 2015 2014
 
Sales $ 2,033 $ 1,746 $ 5,913 $ 5,275
 
Costs and expenses
Costs applicable to sales (1) 1,133 1,185 3,171 3,328
Depreciation and amortization 331 318 896 922
Reclamation and remediation 25 20 74 61
Exploration 34 44 115 119
Advanced projects, research and development 32 36 93 120
General and administrative 43 45 138 138
Other expense, net   57     63     148     179  
  1,655     1,711     4,635     4,867  
Other income (expense)
Other income, net 140 79 128 128
Interest expense, net   (81 )   (89 )   (248 )   (276 )
  59     (10 )   (120 )   (148 )
Income (loss) before income and mining tax and other items 437 25 1,158 260
Income and mining tax benefit (expense) (151 ) 47 (496 ) 22
Equity income (loss) of affiliates   (18 )   —     (34 )   2  
Income (loss) from continuing operations 268 72 628 284
Income (loss) from discontinued operations   17     3     34     (16 )
Net income (loss) 285 75 662 268
Net loss (income) attributable to noncontrolling interests   (66 )   138     (188 )   225  
Net income (loss) attributable to Newmont stockholders $ 219   $ 213   $ 474   $ 493  
 
Net income (loss) attributable to Newmont stockholders:
Continuing operations $ 202 $ 210 $ 440 $ 509
Discontinued operations   17     3     34     (16 )
$ 219   $ 213   $ 474   $ 493  
Income (loss) per common share
Basic:
Continuing operations $ 0.38 $ 0.42 $ 0.86 $ 1.02
Discontinued operations   0.04     0.01     0.07     (0.03 )
$ 0.42   $ 0.43   $ 0.93   $ 0.99  
Diluted:
Continuing operations $ 0.38 $ 0.42 $ 0.86 $ 1.02
Discontinued operations   0.04     0.01     0.07     (0.03 )
$ 0.42   $ 0.43   $ 0.93   $ 0.99  
 
Cash dividends declared per common share $ 0.025 $ 0.025 $ 0.075 $ 0.200

(1) Excludes Depreciation and amortization and Reclamation and remediation.

       

NEWMONT MINING CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited, in millions)

 
Three Months Ended Nine Months Ended
September 30, September 30,
2015     2014 2015     2014
Operating activities:
Net income $ 285 $ 75 $ 662 $ 268
Adjustments:
Depreciation and amortization 331 318 896 922
Stock based compensation and other non-cash benefits 18 15 58 42
Reclamation and remediation 23 20 70 61
Loss (income) from discontinued operations (17 ) (3 ) (34 ) 16
Impairment of investments 29 3 102 4
Deferred income taxes 82 (91 ) 212 (183 )
Gain on asset and investment sales, net (66 ) (40 ) (109 ) (92 )
Gain on deconsolidation of TMAC (76 ) — (76 ) —
Other operating adjustments and write-downs 89 252 254 525
Net change in operating assets and liabilities   115     (221 )   (153 )   (674 )
Net cash provided by continuing operations 813 328 1,882 889
Net cash used in discontinued operations   (3 )   (4 )   (9 )   (10 )
Net cash provided by operations   810     324     1,873     879  
Investing activities:
Additions to property, plant and mine development (335 ) (277 ) (941 ) (766 )
Acquisitions, net (819 ) — (819 ) (28 )
Sales of investments — — 29 25
Proceeds from sale of other assets 82 115 126 191
Other   (41 )   (2 )   (47 )   (14 )
Net cash used in investing activities   (1,113 )   (164 )   (1,652 )   (592 )
Financing activities:
Proceeds from debt, net — 578 — 596
Repayment of debt (51 ) (576 ) (332 ) (581 )
Proceeds from stock issuance, net — — 675 —
Sale of noncontrolling interests — 3 37 71
Funding from noncontrolling interests 27 — 89 —
Acquisition of noncontrolling interests (2 ) (2 ) (8 ) (6 )
Dividends paid to noncontrolling interests — — (3 ) (4 )
Dividends paid to common stockholders (15 ) (13 ) (38 ) (102 )
Restricted cash and other   2     (16 )   (59 )   (27 )
Net cash provided by (used in) financing activities   (39 )   (26 )   361     (53 )
Effect of exchange rate changes on cash   (2 )   (9 )   (21 )   (11 )
Net change in cash and cash equivalents (344 ) 125 561 223
Cash and cash equivalents at beginning of period   3,308     1,653     2,403     1,555  
Cash and cash equivalents at end of period $ 2,964   $ 1,778   $ 2,964   $ 1,778  
 

       

NEWMONT MINING CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(unaudited, in millions)

 
At September 30, December 31,
2015 2014
ASSETS
Cash and cash equivalents $ 2,964 $ 2,403
Trade receivables 175 186
Other accounts receivables 174 290
Investments 25 73
Inventories 766 700
Stockpiles and ore on leach pads 782 666
Deferred income tax assets 193 240
Other current assets   116     881  
Current assets 5,195 5,439
Property, plant and mine development, net 14,335 13,650
Investments 378 334
Stockpiles and ore on leach pads 3,014 2,820
Deferred income tax assets 1,704 1,790
Other long-term assets   928     883  
Total assets $ 25,554   $ 24,916  
 
LIABILITIES
Debt $ 266 $ 166
Accounts payable 435 406
Employee-related benefits 254 307
Income and mining taxes 119 74
Other current liabilities   617     1,245  
Current liabilities 1,691 2,198
Debt 6,085 6,480
Reclamation and remediation liabilities 1,712 1,606
Deferred income tax liabilities 763 656
Employee-related benefits 419 492
Other long-term liabilities   315     395  
Total liabilities   10,985     11,827  
Commitments and contingencies
 
EQUITY
Common stock 846 798
Additional paid-in capital 9,409 8,712
Accumulated other comprehensive income (loss) (389 ) (478 )
Retained earnings   1,678     1,242  
Newmont stockholders' equity 11,544 10,274
Noncontrolling interests   3,025     2,815  
Total equity   14,569     13,089  
Total liabilities and equity $ 25,554   $ 24,916  
 

       
Regional Operating Statistics
 
    Consolidated gold Attributable gold
ounces produced ounces produced
(thousands): (thousands):
Three Months Ended Three Months Ended
September 30, September 30,
2015     2014 2015 2014
North America
Carlin 231 236 231 236
Phoenix 53 56 53 56
Twin Creeks 119 89 119 89
La Herradura — 47 — 47
CC&V 31 — 31 —
434 428 434 428
South America
Yanacocha 242 250 125 128
Other South America Equity Interests — — 16 8
242 250 141 136
Asia Pacific
Boddington 205 165 205 165
Tanami 126 72 126 72
Waihi 33 39 33 39
Kalgoorlie 89 82 89 82
Batu Hijau 216 2 105 1
Other Asia Pacific Equity Interests — — 14 18
669 360 572 377
Africa
Ahafo 77 107 77 107
Akyem 116 106 116 106
193 213 193 213
1,538 1,251 1,340 1,154
Consolidated copper pounds produced (millions):
Phoenix 12 11 12 11
Boddington 21 16 21 16
Batu Hijau 147 7 72 3
180 34 105 30
Consolidated copper tonnes produced (thousands):
Phoenix 5 5 5 5
Boddington 10 7 10 7
Batu Hijau 67 3 33 1
82 15 48 13
 

Non-GAAP Financial Measures

Non-GAAP financial measures are intended to provide additional information only and do not have any standard meaning prescribed by generally accepted accounting principles (GAAP). These measures should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP.

Our management uses adjusted net income, adjusted net income per diluted share and Adjusted EBITDA as measures of operating performance to assist in comparing performance from period to period on a consistent basis; as a measure for planning and forecasting overall expectations and for evaluating actual results against such expectations; in communications with the board of directors, stockholders, analysts and investors concerning our financial performance; as useful comparisons to the performance of our competitors; and as metrics of certain management incentive compensation calculations. We believe that adjusted net income, adjusted net income per diluted share and Adjusted EBITDA are used by and are useful to investors and other users of our financial statements in evaluating our operating performance because they provide an additional tool to evaluate our performance without regard to special and non-core items, which can vary substantially from company to company depending upon accounting methods and book value of assets and capital structure. We have provided reconciliations of all non-GAAP measures to their nearest U.S. GAAP measures and have consistently applied the adjustments within our reconciliations in arriving at each non-GAAP measure. These adjustments consist of special items from our U.S. GAAP financial statements as well as other non-core items, such as property, plant and mine development impairments, restructuring costs, gains and losses on sales of asset sales, abnormal production costs and transaction/acquisition costs included in our U.S. GAAP results that warrant adjustment to arrive at non-GAAP results. We consider these items to be necessary adjustments for purposes of evaluating our ongoing business performance and are often considered non-recurring. Such adjustments are subjective and involve significant management judgment.

Adjusted net income (loss)

Management of the Company 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 production and sale of minerals, by excluding certain items that have a disproportionate impact on our results for a particular period. The net income (loss) adjustments are presented net of tax generally at Company’s statutory effective tax rate of 35% and net of our partners’ noncontrolling interests when applicable. The corollary impact of the adjustments through the Company’s Valuation allowance is shown separately. The tax valuation allowance adjustment includes items such as foreign tax credits, alternative minimum tax credits, capital losses and disallowed foreign losses. 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:

               
Three Months Ended Nine Months Ended
September 30, September 30,
2015 2014 2015 2014
Net income (loss) attributable to Newmont stockholders $ 219 $ 213 $ 474 $ 493
Loss (income) from discontinued operations (1) (17 ) (3 ) (34 ) 16
Impairments and loss provisions (2) 21 5 70 12
Tax valuation allowance (24 ) 21 65 (77 )
Restructuring and other (3) 7 11 14 18
Acquisition costs (4) 5 — 10 —
Loss (gain) on asset and investment sales (5) (36 ) (17 ) (63 ) (31 )
Abnormal production costs at Batu Hijau (6) — 19 — 28
Gain on deconsolidation of TMAC (7)   (49 )   —     (49 )   —  
Adjusted net income (loss) $ 126   $ 249   $ 487   $ 459  
 
Net income (loss) per share, basic $ 0.42 $ 0.43 $ 0.93 $ 0.98
Loss (income) from discontinued operations, net of taxes (0.04 ) (0.01 ) (0.07 ) 0.03
Impairments and loss provisions, net of taxes 0.05 0.01 0.14 0.02
Tax valuation allowance (0.05 ) 0.04 0.13 (0.15 )
Restructuring and other, net of taxes 0.02 0.02 0.03 0.04
Acquisition costs, net of taxes 0.01 — 0.02 —
Loss (gain) on asset and investment sales, net of taxes (0.07 ) (0.03 ) (0.12 ) (0.06 )
Abnormal production costs at Batu Hijau, net of taxes — 0.04 — 0.06
Gain on deconsolidation of TMAC, net of taxes   (0.10 )   —     (0.10 )   —  
Adjusted net income (loss) per share, basic $ 0.24   $ 0.50   $ 0.96   $ 0.92  
 
Net income (loss) per share, diluted $ 0.42 $ 0.43 $ 0.93 $ 0.98
Loss (income) from discontinued operations, net of taxes (0.04 ) (0.01 ) (0.07 ) 0.03
Impairments and loss provisions, net of taxes 0.04 0.01 0.13 0.02
Tax valuation allowance (0.05 ) 0.04 0.13 (0.15 )
Restructuring and other, net of taxes 0.02 0.02 0.03 0.04
Acquisition costs, net of taxes 0.01 — 0.02 —
Loss (gain) on asset and investment sales, net of taxes (0.07 ) (0.03 ) (0.12 ) (0.06 )
Abnormal production costs at Batu Hijau, net of taxes — 0.04 — 0.06
Gain on deconsolidation of TMAC, net of taxes   (0.10 )   —     (0.10 )   —  
Adjusted net income (loss) per share, diluted $ 0.23   $ 0.50   $ 0.95   $ 0.92  
 
Weighted average common shares (millions):
Basic 529 499 511 499
Diluted 530 500 512 499
(1)   Loss (income) from discontinued operations is presented net of tax $7, $2, $15 and $(7) expense (benefit), respectively.
(2) Impairments and loss provisions is presented net of tax ($11), ($3), ($38) and ($7) expense (benefit), respectively and amounts attributed to noncontrolling interest income (expense) of $-, $-, $- and ($3), respectively.
(3) Restructuring and other is presented net of tax ($4), ($7), ($9) and ($11) expense (benefit), respectively and amounts attributed to noncontrolling interest income (expense) of ($1), ($1), ($3) and ($3), respectively.
(4) Acquisition costs are presented net of tax ($2), $-, ($5) and $- expense (benefit), respectively.
(5) Loss (gain) on asset and investment sales are presented net of tax $30, $24, $46 and $62 expense (benefit), respectively.
(6) Abnormal production cost at Batu Hijau is presented net of tax $-, $41, $- and $32 expense (benefit), respectively and amounts attributed to noncontrolling interest income (expense) of $-, $39, $- and $30, respectively.
(7) Gain on deconsolidation of TMAC is presented net of tax $27, $-, $27, $- expense (benefit), respectively.
 

Adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization (Adjusted EBITDA)

We also present adjusted earnings before interest, taxes, depreciation, and amortization (Adjusted EBITDA) as a non-GAAP measure. Management of the Company uses EBITDA and EBITDA adjusted for non-core or certain items that have a disproportionate impact on our results for a particular period (Adjusted EBITDA) as non-GAAP measures to evaluate the Company’s operating performance. EBITDA and Adjusted EBITDA do not represent, and should not be considered an alternative to, net earnings (loss), operating earnings (loss), or cash flow from operations as those terms are defined by GAAP, and does not necessarily indicate whether cash flows will be sufficient to fund cash needs. Although Adjusted EBITDA and similar measures are frequently used as measures of operations and the ability to meet debt service requirements by other companies, our calculation of Adjusted EBITDA is not necessarily comparable to such other similarly titled captions of other companies. The Company believes that Adjusted EBITDA provides useful information to investors and others in understanding and evaluating our operating results in the same manner as our management and board of directors. Management’s determination of the components of Adjusted EBITDA 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 EBITDA and Adjusted EBITDA as follows:

               
Three Months Ended Nine Months Ended
September 30, September 30,
2015 2014 2015 2014
Net income (loss) attributable to Newmont stockholders $ 219 $ 213 $ 474 $ 493
Net income (loss) attributable to noncontrolling interests 66 (138 ) 188 (225 )
Loss (income) from discontinued operations (17 ) (3 ) (34 ) 16
Equity loss (income) of affiliates 18 — 34 (2 )
Income and mining tax expense (benefit) 151 (47 ) 496 (22 )
Depreciation and amortization 331 318 896 922
Interest expense, net   81     89     248     276  
EBITDA $ 849 $ 432 $ 2,302 $ 1,458
Adjustments:
Impairments and loss provisions $ 32 $ 8 $ 108 $ 22
Restructuring and other 12 19 26 32
Acquisitions costs 7 — 15 —
Gain on deconsolidation of TMAC (76 ) — (76 ) —
Loss (gain) on asset and investment sales (66 ) (41 ) (109 ) (93 )
Abnormal production costs at Batu Hijau   —     37     —     53  
Adjusted EBITDA $ 758   $ 455   $ 2,266   $ 1,472  
 

Free Cash Flow

Free Cash Flow is cash generated from Net cash provided from continuing operations less Additions to property, plant and mine development as presented on the Statement of Cash Flows. To supplement our statements of cash flows presented on a GAAP basis, we use non-GAAP measures of cash flows to analyze cash flows generated from our operations. We believe Free Cash Flow is also useful as one of the bases for comparing our performance with our competitors. The presentation of non-GAAP Free Cash Flow is not meant to be considered in isolation or as an alternative to net income as an indicator of our performance, or as an alternative to cash flows from operating activities as a measure of liquidity. Net cash provided from continuing operations is reconciled to Free Cash Flow as follows:

             
Three Months Ended Nine Months Ended
September 30, September 30,
2015 2014 2015 2014
Net cash provided by continuing operations $ 813 $ 328 $ 1,882 $ 889
Less: Additions to property, plant and mine development   (335 )   (277 )   (941 )   (766 )
Free Cash Flow $ 478   $ 51   $ 941   $ 123  
 

Costs applicable to sales per ounce/pound

Costs applicable to sales per ounce/pound are non-GAAP financial measures. These measures are calculated by dividing the costs applicable to sales of gold and copper by gold ounces or copper pounds sold, respectively. These measures are calculated on a consistent basis for the periods presented on a consolidated basis. Costs applicable to sales per ounce/pound statistics are intended to provide additional information only and do not have any standardized meaning prescribed by GAAP and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP. The measures are not necessarily indicative of operating profit or cash flow from operations as determined under GAAP. Other companies may calculate these measures differently.

The following tables reconcile these non-GAAP measures to the most directly comparable GAAP measures.

Costs applicable to sales per ounce

               
Three Months Ended Nine Months Ended
September 30, September 30,
2015 2014 2015 2014
Costs applicable to sales (1) $ 940 $ 893 $ 2,626 $ 2,797
Gold sold (thousand ounces) 1,548 1,267 4,252 3,814
Costs applicable to sales per ounce $ 608 $ 705 $ 618 $ 733
(1)   Includes by-product credits of $14 and $40 in the third quarter and first nine months of 2015, respectively, and $16 and $54 in the third quarter and first nine months of 2014, respectively.
 

Costs applicable to sales per pound

               
Three Months Ended Nine Months Ended
September 30, September 30,
2015 2014 2015 2014
Costs applicable to sales (1) $ 193 $ 292 $ 545 $ 531
Copper sold (million pounds) 167 51 445 141
Costs applicable to sales per pound: $ 1.15 $ 5.73 $ 1.22 $ 3.75
(1)   Includes by-product credits of $7 and $18 in the third quarter and first nine months of 2015, respectively, and $3 and $12 in the third quarter and first nine months of 2014, respectively.
 

All-In Sustaining Costs

Newmont has worked to develop a metric that expands on GAAP measures such as cost of goods sold and non-GAAP measures, such as costs applicable to sales per ounce, to provide visibility into the economics of our mining operations related to expenditures, operating performance and the ability to generate cash flow from operations.

Current GAAP-measures used in the mining industry, such as cost of goods sold, do not capture all of the expenditures incurred to discover, develop, and sustain gold production. Therefore, we believe that all-in sustaining costs is a non-GAAP measure that provides additional information to management, investors, and analysts that aid in the understanding of the economics of our operations and performance compared to other producers and in the investor’s visibility by better defining the total costs associated with production.

All-in sustaining cost (AISC) amounts are intended to provide additional information only and do not have any standardized meaning prescribed by GAAP and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP. The measures are not necessarily indicative of operating profit or cash flow from operations as determined under GAAP. Other companies may calculate these measures differently as a result of differences in the underlying accounting principles, policies applied and in accounting frameworks such as in International Financial Reporting Standards (IFRS), or by reflecting the benefit from selling non-gold metals as a reduction to AISC. Differences may also arise related to definitional differences of sustaining versus development capital activities based upon each company’s internal policies.

The following disclosure provides information regarding the adjustments made in determining the all-in sustaining costs measure:

Cost Applicable to Sales - Includes all direct and indirect costs related to current gold production incurred to execute the current mine plan. Costs Applicable to Sales (CAS) includes by-product credits from certain metals obtained during the process of extracting and processing the primary ore-body. CAS is accounted for on an accrual basis and excludes Amortization and Reclamation and remediation, which is consistent with our presentation of CAS on the Statement of Consolidated Income. In determining AISC, only the CAS associated with producing and selling an ounce of gold is included in the measure. Therefore, the amount of gold CAS included in AISC is derived from the CAS presented in the Company’s Statement of Consolidated Income less the amount of CAS attributable to the production of copper at our Phoenix, Boddington and Batu Hijau mines. The copper CAS at those mine sites is disclosed in Note 3 – Segments that accompanies the Consolidated Financial Statements. The allocation of CAS between gold and copper at the Phoenix, Boddington and Batu Hijau mines is based upon the relative sales percentage of copper and gold sold during the period.

Remediation Costs - Includes accretion expense related to asset retirement obligations (ARO) and the amortization of the related Asset Retirement Cost (ARC) for the Company’s operating properties recorded as an ARC asset. Accretion related to ARO and the amortization of the ARC assets for reclamation and remediation do not reflect annual cash outflows but are calculated in accordance with GAAP. The accretion and amortization reflect the periodic costs of reclamation and remediation associated with current gold production and are therefore included in the measure. The allocation of these costs to gold and copper is determined using the same allocation used in the allocation of CAS between gold and copper at the Phoenix, Boddington and Batu Hijau mines.

Advanced Projects and Exploration - Includes incurred expenses related to projects that are designed to increase or enhance current gold production and gold exploration. We note that as current resources are depleted, exploration and advance projects are necessary for us to replace the depleting reserves or enhance the recovery and processing of the current reserves. As this relates to sustaining our gold production, and is considered a continuing cost of a mining company, these costs are included in the AISC measure. These costs are derived from the Advanced projects, research and development and Exploration amounts presented in the Company’s Statement of Consolidated Income less the amount attributable to the production of copper at our Phoenix, Boddington and Batu Hijau mines. The allocation of these costs to gold and copper is determined using the same allocation used in the allocation of CAS between gold and copper at the Batu Hijau, Boddington and Phoenix mines.

General and Administrative - Includes cost related to administrative tasks not directly related to current gold production, but rather related to support our corporate structure and fulfilling our obligations to operate as a public company. Including these expenses in the AISC metric provides visibility of the impact that general and administrative activities have on current operations and profitability on a per ounce basis.

Other Expense, net - Includes costs related to regional administration and community development to support current gold production. We exclude certain exceptional or unusual expenses from Other expense, net, such as restructuring, as these are not indicative to sustaining our current gold operations. Furthermore, this adjustment to Other expense, net is also consistent with the nature of the adjustments made to Net income (loss) as disclosed in the Company’s non-GAAP financial measure Adjusted net income (loss). The allocation of these costs to gold and copper is determined using the same allocation used in the allocation of CAS between gold and copper at the Phoenix, Boddington and Batu Hijau mines.

Treatment and Refining Costs - Includes costs paid to smelters for treatment and refining of our concentrates to produce the salable metal. These costs are presented net as a reduction of Sales.

Sustaining Capital - We determined sustaining capital as those capital expenditures that are necessary to maintain current gold production and execute the current mine plan. Capital expenditures to develop new operations, or related to projects at existing operations where these projects will enhance gold production or reserves, are considered development. We determined the breakout of sustaining and development capital costs based on a systematic review of our project portfolio in light of the nature of each project. Sustaining capital costs are relevant to the AISC metric as these are needed to maintain the Company’s current gold operations and provide improved transparency related to our ability to finance these expenditures from current operations. The allocation of these costs to gold and copper is determined using the same allocation used in the allocation of CAS between gold and copper at the Batu Hijau, Boddington and Phoenix mines.

                                       
Advanced Treatment All-In
Costs Projects General Other and All-In Ounces Sustaining
Three Months Ended Applicable Remediation and and Expense, Refining Sustaining Sustaining (000)/Pounds Costs per
September 30, 2015 to Sales (1)(2)(3) Costs (4) Exploration Administrative Net (5) Costs Capital (6) Costs (millions) Sold oz/lb
GOLD
Carlin $ 208 $ 1 $ 5 $ - $ 2 $ - $ 49 $ 265 231 $ 1,147
Phoenix 48 1 - - 1 3 3 56 59 949
Twin Creeks 66 2 2 - 1 - 7 78 119 655
CC&V (7) 10 1 1 - - - 1 13 33 394
Other North America   -   -   7   -   2   -   1   10 -   -
North America   332   5   15   -   6   3   61   422 442   955
 
Yanacocha 158 24 9 - 7 - 25 223 257 868
Other South America   -   -   10   -   -   -   -   10 -   -
South America   158   24   19   -   7   -   25   233 257   907
 
Boddington 131 2 - - - 5 10 148 208 712
Tanami 54 - 2 - 1 - 18 75 126 595
Waihi 12 1 1 - - - 1 15 29 517
Kalgoorlie 68 2 1 - - 1 3 75 86 872
Batu Hijau 83 3 - - 3 13 9 111 205 541
Other Asia Pacific   -   -   1   -   6   -   1   8 -   -
Asia Pacific   348   8   5   -   10   19   42   432 654   661
 
Ahafo 50 1 5 - 2 - 11 69 79 873
Akyem 52 3 2 - 2 - 11 70 116 603
Other Africa   -   -   -   -   2   -   -   2 -   -
Africa   102   4   7   -   6   -   22   141 195   723
 
Corporate and Other   -   -   18   43   1   -   2   64 -   -
Total Gold $ 940 $ 41 $ 64 $ 43 $ 30 $ 22 $ 152 $ 1,292 1,548 $ 835
 
COPPER
Phoenix $ 27 $ 1 $ 1 $ - $ - $ 3 $ 2 $ 34 14 $ 2.43
Boddington 33 - - - - 3 3 39 19 2.05
Batu Hijau   133   5   1   -   5   25   15   184 134   1.37
Asia Pacific   166   5   1   -   5   28   18   223 153   1.46
Total Copper $ 193 $ 6 $ 2 $ - $ 5 $ 31 $ 20 $ 257 167 $ 1.54
                               
Consolidated $ 1,133 $ 47 $ 66 $ 43 $ 35 $ 53 $ 172 $ 1,549
(1)   Excludes Depreciation and amortization and Reclamation and remediation.
(2) Includes by-product credits of $21.
(3) Includes stockpile and leach pad inventory adjustments of $35 at Carlin, $7 at Twin Creeks and $20 at Yanacocha.
(4) Remediation costs include operating accretion of $21 and amortization of asset retirement costs of $26.
(5) Other expense, net is adjusted for restructuring costs of $12, acquisition costs of $7 and write-downs of $3.
(6) Excludes development capital expenditures, capitalized interest, and the increase in accrued capital of $163. The following are major development projects: Merian, Turf Vent Shaft, Long Canyon and the CC&V expansion project.
(7) The Company acquired the CC&V gold mining business on August 3, 2015.
 

                                       
Advanced Treatment All-In
Costs Projects General Other and All-In Ounces Sustaining
Three Months Ended Applicable Remediation and and Expense, Refining Sustaining Sustaining (000)/Pounds Costs per
September 30, 2014 to Sales (1)(2)(3) Costs (4) Exploration Administrative Net (5) Costs Capital (6) Costs (millions) Sold oz/lb
GOLD
Carlin $ 206 $ 1 $ 5 $ - $ 2 $ - $ 41 $ 255 236 $ 1,081
Phoenix 47 1 2 - 1 3 4 58 65 892
Twin Creeks 43 1 - - 1 - 25 70 90 778
La Herradura (7) 44 1 4 - - - 6 55 47 1,170
Other North America   -   -   8   -   5   -   -   13 -   -
North America   340   4   19   -   9   3   76   451 438   1,030
 
Yanacocha 125 21 8 - 7 - 22 183 248 738
Other South America   -   -   9   -   1   -   -   10 -   -
South America   125   21   17   -   8   -   22   193 248   778
 
Boddington 150 3 - - 1 1 14 169 161 1,050
Tanami 67 2 4 - - - 19 92 78 1,179
Jundee (8) - - - - - - - - 1 -
Waihi 20 1 2 - 1 - - 24 36 667
Kalgoorlie 71 2 1 - 1 1 10 86 81 1,062
Batu Hijau 26 - - - 1 3 2 32 9 3,556
Other Asia Pacific   -   -   1   -   9   -   1   11 -   -
Asia Pacific   334   8   8   -   13   5   46   414 366   1,131
 
Ahafo 56 4 4 - 1 - 8 73 108 676
Akyem 38 1 - - 1 - 3 43 107 402
Other Africa   -   -   1   -   1   -   -   2 -   -
Africa   94   5   5   -   3   -   11   118 215   549
 
Corporate and Other   -   -   29   45   2   -   9   85 -   -
Total Gold $ 893 $ 38 $ 78 $ 45 $ 35 $ 8 $ 164 $ 1,261 1,267 $ 995
 
COPPER
Phoenix $ 25 $ - $ 2 $ - $ - $ 1 $ 2 $ 30 11 $ 2.73
Boddington 40 - - - - 6 4 50 17 2.94
Batu Hijau   227   2   -   -   4   10   14   257 23   11.17
Asia Pacific   267   2   -   -   4   16   18   307 40   7.68
Total Copper $ 292 $ 2 $ 2 $ - $ 4 $ 17 $ 20 $ 337 51 $ 6.61
                               
Consolidated $ 1,185 $ 40 $ 80 $ 45 $ 39 $ 25 $ 184 $ 1,598
(1)   Excludes Depreciation and amortization and Reclamation and remediation.
(2) Includes by-product credits of $19.
(3) Includes stockpile and leach pad inventory adjustments of $43 at Carlin, $4 at Phoenix, $3 at Twin Creeks, $9 at Yanacocha, $29 at Boddington and $160 at Batu Hijau.
(4) Remediation costs include operating accretion of $18 and amortization of asset retirement costs of $22.
(5) Other expense, net is adjusted for restructuring costs of $19 and write-downs of $5.
(6) Excludes development capital expenditures, capitalized interest, and the increase in accrued capital of $93. The following are major development projects: Turf Vent Shaft, Merian, Correnso and Conga.
(7) On October 6, 2014, the Company sold its 44% interest in La Herradura.
(8) The Jundee mine was sold July 1, 2014.
 

Conference Call Information

A conference call will be held on Thursday, October 29, 2015 at 10:00 a.m. Eastern Time (8:00 a.m. Mountain Time); it will also be carried on the Company's website.

Conference Call Details

Dial-In Number 800.857.6428
Intl Dial-In Number 517.623.4916
Leader Meredith Bandy
Passcode Newmont
Replay Number 800.274.8308
Intl Replay Number 203.369.3678
Replay Passcode 2015

Webcast Details

URL: http://event.on24.com/wcc/r/1056541/BDB8FA15E46A9363EE231A4F89962CF8

The third quarter 2015 operations and financial results will be available after the market close on Wednesday October 28, 2015 on the “Investor Relations” section of the Company’s website, www.newmont.com. Additionally, the conference call will be archived for a limited time on the Company’s website.

Investors are reminded to refer to the investor Briefcase on www.newmont.com which contains operating statistics, MD&A and other relevant financial information.

Cautionary Statement Regarding Forward Looking Statements, Including Outlook:

This release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are intended to be covered by the safe harbor created by such sections and other applicable laws. Such forward-looking statements may include, without limitation: (i) estimates of future consolidated and attributable production and sales; (ii) estimates of future costs applicable to sales and All-in sustaining costs; (iii) estimates of future consolidated and attributable capital expenditures; (iv) our efforts to continue delivering reduced costs and efficiency; and (v) expectations regarding the development, growth, exploration potential and internal rates of returns of the Company’s projects and investments, including the Turf Vent Shaft, Merian, Cripple Creek and Victor, Long Canyon Phase 1, the Tanami Expansion and the Ahafo Mill Expansion; and (vi) expectations regarding future debt repayments. Estimates or expectations of future events or results are based upon certain assumptions, which may prove to be incorrect. Such assumptions, include, but are not limited to: (i) there being no significant change to current geotechnical, metallurgical, hydrological and other physical conditions; (ii) permitting, development, operations and expansion of the Company’s operations and projects being consistent with current expectations and mine plans, including without limitation receipt of export approvals; (iii) political developments in any jurisdiction in which the Company operates being consistent with its current expectations; (iv) certain exchange rate assumptions for the Australian dollar to the U.S. dollar, as well as other the exchange rates being approximately consistent with current levels; (v) certain price assumptions for gold, copper and oil; (vi) prices for key supplies being approximately consistent with current levels; (vii) the accuracy of our current mineral reserve and mineralized material estimates; (viii) the acceptable outcome of negotiation of the amendment to the Contract of Work and/or resolution of export issues in Indonesia other assumptions noted herein. Where the Company expresses or implies an expectation or belief as to future events or results, such expectation or belief is expressed in good faith and believed to have a reasonable basis. However, such statements are subject to risks, uncertainties and other factors, which could cause actual results to differ materially from future results expressed, projected or implied by the “forward-looking statements”. Such risks include, but are not limited to, gold and other metals price volatility, currency fluctuations, increased production costs and variances in ore grade or recovery rates from those assumed in mining plans, political and operational risks, community relations, conflict resolution and outcome of projects or oppositions and governmental regulation and judicial outcomes. For a more detailed discussion of such risks and other factors, see the Company’s Form 10-Q, filed on July 23, 2015, with the Securities and Exchange Commission (SEC), as well as the Company’s other SEC filings. The Company does not undertake any obligation to release publicly revisions to any “forward-looking statement,” including, without limitation, outlook, to reflect events or circumstances after the date of this news release, or to reflect the occurrence of unanticipated events, except as may be required under applicable securities laws. Investors should not assume that any lack of update to a previously issued “forward-looking statement” constitutes a reaffirmation of that statement. Continued reliance on “forward-looking statements” is at investors' own risk.

Investors are reminded that this news release should be read in conjunction with Newmont’s Third Quarter Form 10-Q expected to be filed on or about October 28, 2015 with the SEC (also available at www.newmont.com).