Newmont's first quarter financials,...
Found this in their f/s,...
First Quarter Results Under New Accounting Rules
The Normandy and Franco-Nevada acquisitions were accounted for using the purchase method of accounting
whereby assets acquired and liabilities assumed are recorded at their fair market values as of the date of
acquisition. Goodwill, representing the excess of the purchase price over fair market value, was recorded as an
asset of $2.5 billion and is not subject to amortization. Goodwill will be reviewed for possible impairment
annually. The purchase price allocation and the related goodwill are preliminary and will be finalized following
the completion of an independent appraisal that is expected to be completed by the end of the second quarter of
2002. Furthermore, under purchase accounting, revenue and income of the acquired companies are recognized
only from the date of acquisition and the 2001 historical data is presented for Newmont on a stand-alone basis
with no restatement on a combined basis.
ROBtv, a Canadian business station discussed Newmonts quarterlies and the missing Normandy production the day
after they were released and attempted to reconcile the statements and production issues.
I only caught the end, so am unsure of all the details.
I think Newmont may publish a revised set of statements later to accurately reflect the first quarter total
combined sales compared to previous years comps.
Barrick did something similar when they published a non-quarter timeperiod earlier this year together with revised
financial statements and projections for 2002.
I believe this NR below is what Newmont expects the combined total production from all minesites to be for the
current full year,...it confirms the lowered 7.5 million oz figure but again appears to not include the approx.
300,000 oz produced by Normandy in the first 7 weeks of this quarter
(if 1.7 million oz expected for full year minus to Feb 20/02, then full year from Normandy should have been
approx. 1.7/314*365 = 2.0 million oz).
If we compare this to combined 8.2 million oz in 2001 we see a 400,000 oz shortfall for 2002 but
some of this may reflect the sale of Lihir.
http://www.newswire.ca/releases/May2002/15/c5878.html
Newmont Announces 2002 Forecasts
DENVER, May 15 /CNW/ -- Newmont Mining Corporation
(NYSE: NEM; ASX) (Toronto: NMC) issued the following supplement to their first
quarter earnings release:
Newmont Mining Corporation
2002 Forecasts
Equity Gold Total Cash Cost
Production (000 oz) ($/oz)
North America
Nevada (100%) ~2,700 ~205-210
Mesquite (100%) 50 ~155
Golden Giant (100%) 280 ~185
Holloway (84.65%) ~100 ~195
La Herradura (44%) ~60 ~180
Sub total ~3,200 202-206
South America
Yanacocha (51.35%) ~1,200 125-130
Kori Kollo (88%) ~250 150
Sub total ~1,500 129-134
Australia
Kalgoorlie (50%) ~315 ~220
Pajingo (100%) ~280 ~90
Tanami (86.5%*) ~425 ~195-200
Yandal (100%) ~680 ~175-180
Sub total ~1,700 174-178
Other
Martha (89.9%*) ~100 ~140
Zarafshan (50%) ~225 ~160
Batu Hijau (56.25%) ~235 --
Minahasa (94%) ~120 ~225
Ovacik (100%) ~100 ~130
Sub total ~780 ~165
EQUITY INVESTMENTS
Echo Bay (48.8%) ~210 ~220
TVX Newmont Americas (49.9%) ~180 ~165-170
TOTAL ~7,500 ~180
* Reflects interest ownership as of March 31, 2002.
Equity Copper and Zinc Production (mm lb) Total Cash Cost
(cents/lb)
Batu Hijau (56.25%) - Copper 310-340 40-42
Golden Grove (100%) - Copper 50-55 ~60
Golden Grove (100%) - Zinc 95-100 ~28
Financial Projections
(in $ million except for tax rate)
Third party royalty revenue ~35
Depreciation, depletion and amortization 560-600
Exploration and research 70-75
General & administrative ~95
Interest expense, net of capitalized ~110-115
Tax rate assuming current gold price range 15-25%
Capital expenditures ~450 |
