Newmont Announces Solid First Quarter 2020 Results

Company responds to COVID-19 from position of strength; proven operating model and globally diverse portfolio highlight competitive advantage

Newmont Corp. (NYSE: NEM, TSX: NGT) (Newmont or the Company) today announced first quarter 2020 results.

COVID-19 response

• Fully mobilized rapid response crisis management teams and business continuity plans and are working closely with host and indigenous communities, regional and national governments and medical experts to protect Newmont's workforce and nearby communities
• Implemented wide-ranging controls at the Company's operations and offices to put the health, safety, and overall wellbeing of Newmont's people and communities above all else, including significantly minimized staffing levels at the Company's operations
• Established global supply chain task force to assess potential risks and develop viable contingency plans
• Two operations temporarily in care and maintenance while sites representing approximately 90 percent of the Company's planned 2020 production are operating
• Established $20 million Global Community Support Fund focused on employee and community health, food security and local economic resilience through partnerships with local governments, medical institutions, charities and non-governmental organizations to address the greatest needs

First quarter 2020 highlights

• Produced 1.5 million attributable ounces of gold^* and reported CAS^* of $781 per ounce and AISC^* of $1,030 per ounce and produced 339 thousand attributable gold equivalent ounces from co-products
• Generated $939 million of cash from continuing operations and $611 million of Free Cash Flow^*
• Received $1.4 billion in cash proceeds from the sale of KCGM, Continental Gold and Red Lake
• Refinanced $1.0 billion of outstanding debt at historically low coupon of 2.25 percent
• Executed ~$300 million of share repurchases at average price of $45 with 80 percent of $1 billion buyback program now complete
• Reported $3.7 billion of consolidated cash with $6.6 billion of liquidity and a net debt to pro forma adjusted EBITDA^* ratio of 0.7x
• Declared first quarter dividend of $0.25 per share, an increase of 79 percent over prior year quarter

“We are responding to COVID-19 from a position of strength, taking proactive steps to prioritize the well-being of our employees and the communities in which we operate. These unprecedented times further highlight the importance of a proven operating model, talented workforce and the ability to adapt to dynamic circumstances quickly and with care for all stakeholders," said Tom Palmer, President and Chief Executive Officer. “Our world-class diversified portfolio of assets and resilient team delivered solid first quarter performance with $1.1 billion in adjusted EBITDA and $611 million in free cash flow. Our robust balance sheet provides us with significant financial flexibility to continue allocating capital where it is needed most during this time of uncertainty, while maintaining our industry-leading returns to shareholders."

*See footnotes provided at end of release, as well as the cautionary statement at end of release regarding forward-looking statements, including with respect to financial and operating outlook and expected returns to shareholders.

First quarter 2020 Financial and Production Summary

• Net income: Delivered GAAP net income from continuing operations attributable to Newmont stockholders of $837 million or $1.04 per diluted share and adjusted net income¹ of $326 million or $0.40 per diluted share
• EBITDA: Generated $1,118 million in adjusted EBITDA², an increase of 63 percent from the prior year quarter
• Cash flow: Reported consolidated cash flow from continuing operations of $939 million and free cash flow³ of $611 million, increases of 64 percent and 75 percent over the prior year quarter, respectively
• Gold costs applicable to sales (CAS)⁴: Reported CAS of $781 per ounce, an increase of 11 percent over the prior year quarter
• Gold all-in sustaining costs (AISC)⁵: Reported AISC of $1,030 per ounce, an increase of 14 percent over the prior year quarter
• Attributable gold production⁶: Produced 1.5 million ounces of gold, an increase of 20 percent over the prior year quarter
• Portfolio improvements: Completed divestiture of the Company’s 50 percent interest in Kalgoorlie Consolidated Gold Mines (KCGM) in Australia; approved Autonomous Haulage at Boddington in Australia; completed sale of investment holdings in Continental Gold; completed divestiture of Red Lake complex in Canada.
• 2020 Outlook: On March 23, the Company withdrew its full-year 2020 guidance as some production could be deferred into 2021, potentially impacting costs in 2020 if some operations are on care and maintenance for an extended period. Newmont is well positioned to safely and efficiently ramp-up mining operations in a timely manner. As of May 4, 2020, operations representing approximately 90 percent of our planned 2020 production are operating.

First quarter 2020 summary results

Net income (loss) from continuing operations attributable to Newmont stockholders for the quarter was $837 million or $1.04 per diluted share, an increase of $724 million from the prior year quarter primarily due to the gains on the sale of KCGM, Continental Gold and Red Lake, higher production from the acquired Goldcorp assets and higher average realized gold prices, partially offset by an investment impairment and change in fair value of investments and from debt extinguishment in March 2020.

Adjusted net income was $326 million or $0.40 per diluted share, compared to $176 million or $0.33 per diluted share in the prior year quarter. The adjustments to net income of $(0.64) primarily related to gains on asset and investment sales, changes in the fair value of investments, the impairment of investments, debt extinguishment costs, and valuation allowance and other tax adjustments.

Revenue increased 43 percent from the prior year quarter to $2,581 million primarily due to new production from the acquired Goldcorp assets and higher average realized gold prices.

Average realized price⁷ for gold was $1,591, an increase of $291 per ounce over the prior year quarter; average realized price for copper was $1.56, a decrease of $1.33 per pound over the prior year quarter; average realized price for silver, lead and zinc were $14.13 per ounce, $0.64 per pound and $0.62 per pound, respectively.

Gold CAS increased 22 percent to $1,140 million for the quarter due to costs included from the Goldcorp assets. Gold CAS per ounce increased 11 percent from the prior year quarter to $781 per ounce primarily due to lower ore grade mined at Yanacocha and Merian, higher gold price-related royalties and stripping campaigns at Ahafo, partially offset by higher ounces sold from the acquired Goldcorp assets.

Gold AISC increased 14 percent to $1,030 per ounce for the quarter primarily due to higher gold CAS per ounce, higher sustaining capital spend and care and maintenance costs associated with COVID-19.

Attributable gold production increased 20 percent to 1.5 million ounces for the quarter primarily due to new production from the Goldcorp assets, partially offset by the sale of Kalgoorlie in Australia and lower ore grade milled at Ahafo, Yanacocha and Merian.

Attributable gold equivalent ounce (GEO) production from other metals increased to 339 thousand ounces primarily due to new silver, lead and zinc production from Peñasquito, partially offset by the classification of copper as a by-product at Phoenix following the formation of Nevada Gold Mines. CAS from other metals totaled $192 million for the quarter. CAS per GEO improved by 29 percent to $602 per ounce primarily due to new production at Peñasquito, a favorable Australian dollar foreign currency exchange rate, no stockpile inventory adjustment, lower royalties at Boddington and the classification of copper as a by-product at Phoenix following the formation of Nevada Gold Mines. AISC per GEO improved 13 percent to $860 per ounce primarily due to lower CAS from other metals, partially offset by higher treatment and refining costs.

Capital expenditures⁸ increased by 46 percent to $328 million, primarily due to sustaining capital investment from the acquired Goldcorp assets, partially offset by reduced development capital spend. Development capital expenditures in 2020 primarily include advancing Tanami Expansion 2, Musselwhite Materials Handling and conveyor installation, Quecher Main, Yanacocha Sulfides, Ahafo North, and Nevada’s Goldrush and Turquoise Ridge shaft projects.

Consolidated operating cash flow from continuing operations increased 64 percent from the prior year quarter to $939 million due to higher realized gold prices and the inclusion of sales from the acquired Goldcorp assets. Free Cash Flow also increased to $611 million for the quarter, compared to the prior year quarter, primarily due to higher operating cash flow, partially offset by higher capital expenditures.

Balance sheet ended the quarter with $3.7 billion of consolidated cash and approximately $3.0 billion of borrowing capacity on revolving credit facility, totaling approximately $6.6 billion of liquidity; reported net debt to pro forma adjusted EBITDA of 0.7x⁹; issued $1.0 billion of 10-year Senior Notes at 2.25 percent and retired approximately $1.1 billion outstanding debt maturing in 2022 and 2023.

Nevada Gold Mines (NGM) attributable gold production was 329 thousand ounces with CAS of $733 per ounce and AISC of $927 per ounce for the first quarter 2020. EBITDA for NGM was $264 million.

COVID-19 update

In December 2019, an outbreak of a novel strain of coronavirus originated in Wuhan, China (“COVID-19”) and has since spread worldwide, posing public health risks across the globe. In March 2020, the World Health Organization declared COVID-19 a pandemic. The COVID-19 pandemic has negatively impacted the global economy, disrupted global supply chains and workforce participation and created significant volatility and disruption of financial markets. The extent of the impact of the COVID-19 pandemic on Newmont's operational and financial performance, including the Company's ability to execute its 2020 business plan in the expected time frame, will depend on future developments, including the duration and severity of the pandemic and related restrictions, all of which are uncertain and cannot be predicted.

In response to the COVID-19 pandemic, Newmont has fully mobilized its business continuity plans and Rapid Response crisis management teams and is working closely with host and indigenous communities, regional and national governments and medical experts to protect the Company's workforce and nearby communities, while also taking steps to preserve the long-term value of its business.

Newmont has implemented controls at our operations and offices around the globe to put the health, safety, and overall wellbeing of the Company's people and communities above all else. The Company has been working closely with host governments and communities to implement strict safety protocols at Newmont's sites with physical distancing and a reduced workforce. Newmont is also implementing the provision of hygienic and other critical supplies and training and, in certain cases, pre-emptively ramping down operations to safeguard vulnerable communities, or placing operations in care and maintenance to align with government efforts. The health and safety of Newmont's people and our host communities is paramount. This is why the Company engaged its Rapid Response process early in connection with the on-going COVID-19 pandemic and proactively took conservative steps to prevent further transmission of the Coronavirus. These steps include but are not limited to:

• Cancelling all non-essential travel in early March;
• Closing the Company's offices and implementing remote and flexible work arrangements
• Significantly reducing the number of people working on Newmont operating sites to the essential numbers required to operate and maintain the mines, processing plants and environmental control management systems;
• Enhancing temperature and questionnaire screening prior to arrival or entry to sites;
• Implementing strict physical distancing protocols in planes, buses, light vehicles, offices and dining facilities;
• Increasing the frequency of deep cleaning and sanitization of surfaces;
• Providing hygiene and health support to nearby communities where Newmont employees and contractors live and work; and
• Proactively ramping down certain operations to reduce the risk of transmission to nearby communities with limited health care capacity.

Newmont has also established a global Supply Chain task force to ensure that the Company assess all potential risks and develop viable contingency plans that enable it to stay ahead of any potential disruptions to the supply base and corresponding risks to projects and production.

As of the date of filing, Newmont has no confirmed cases of COVID-19 at any of its sites thanks to the discipline of our employees in adhering to these and other protocols. Newmont is proud of the way our employees have responded to these challenging times. In addition to strict adherence to COVID-19 protocols, they have demonstrated their commitment further by joining the fight against this pandemic in the communities where they live and work. As a global business with operations in eight countries, the Company is committed to doing our part to combat this disease and protect people and their livelihoods.

In addition to the above measures, in April 2020 Newmont announced the establishment of the Newmont Global Community Support Fund, a $20 fund to help host communities, governments and employees combat the COVID-19 pandemic. The fund is designed to focus on employee and community health, food security and local economic resilience through partnerships with local governments, medical institutions, charities and non-governmental organizations to address the greatest needs with long-term resiliency and future community development in mind.

Newmont's operations have been affected by a range of external factors related to the COVID-19 pandemic that are not within the Company's control. In order to protect nearby communities and align with travel restrictions or health considerations in Canada, Argentina and Peru, four Newmont operations were temporarily put into care and maintenance in March 2020 including Musselwhite, Éléonore, Cerro Negro and Yanacocha. In April 2020, the Company also began taking steps towards a safe and orderly ramp down of operations at Peñasquito in Mexico and placed the operations on care and maintenance on April 12, 2020. The Company is in the process of ramping up operations at Cerro Negro, Yanacocha and Éléonore. Mines representing approximately 90 percent of Newmont's planned production outlook for 2020 are operational. If at any point the Company determines that continuing operations poses an increased risk to our workforce or host communities, we will reduce operational activities up to and including care and maintenance and management of critical environmental systems.

Newmont believes its liquidity of approximately $6.6 billion is sufficient to continue business operations during this volatile period. We will continuously review and assess the COVID-19 pandemic and its impacts on our business, our people, the communities in which we operate, our suppliers and our customers to be responsive to developments while maintaining financial flexibility. As of March 31, 2020, our cash and cash equivalents were $3.7 billion, and we had access to approximately $3.0 billion of borrowing capacity under our unsecured revolving credit facility, which we believe allows us manage the near-term impacts of the COVID-19 pandemic on our business.

Projects update

Newmont’s capital-efficient project pipeline supports stable production with improving margins and mine life. Near-term development capital projects are presented below. Funding for Tanami Expansion 2 and Musselwhite Materials Handling have been approved and the projects are in execution. 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 with potential to extend mine life to 2040 through the addition of a 1,460 meter hoisting shaft and supporting infrastructure to achieve 3.5 million tonnes per year of production 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 beginning in 2023, and is expected to reduce operating costs by approximately 10 percent. Capital costs for the project are estimated to be between $700 million and $800 million.
• Musselwhite Materials Handling (North America) improves material movement from Musselwhite’s two main zones below Lake Opapimiskan. An underground shaft will hoist ore from the underground crushers, reducing haulage distances and ventilation costs. The project is 95 percent complete; however, full commissioning has been delayed amidst the COVID-19 pandemic as Musselwhite operations have been placed on care and maintenance.

Outlook

On March 23, the Company withdrew only its full-year 2020 guidance as some production could be deferred into 2021, potentially impacting costs in 2020 if some operations are on care and maintenance for an extended period. Newmont is well positioned to safely and efficiently ramp-up mining operations in a timely manner. The Company’s long-term value proposition remains unchanged, despite these shorter-term disruptions, as Newmont continues to have the industry’s largest gold Mineral Reserves of 95.7 million ounces¹⁰.

1 Non-GAAP measure. See end of this release for reconciliation to Net income (loss) attributable to Newmont stockholders.
2 Non-GAAP measure. See end of this release for reconciliation to Net income (loss) attributable to Newmont stockholders.
3 Non-GAAP measure. See end of this release for reconciliation to Net cash provided by operating activities.
4 Non-GAAP measure. See end of this release for reconciliation to Costs applicable to sales.
5 Non-GAAP measure. See end of this release for reconciliation to Costs applicable to sales.
6 Attributable gold production for the full year 2020 includes 95,000 ounces from the Company’s equity method investment in Pueblo Viejo (40%)
7 Non-GAAP measure. See end of this release for reconciliation to Sales.
8 Capital expenditures refers to Additions to property plant and mine development from the Consolidated Statements of Cash Flows
9 Non-GAAP measure. See end of this release for reconciliation.
10 As of December 31, 2019, Newmont reported 100.2 million ounces of gold Mineral Reserves and 95.7 million ounces after adjusting for the KCGM and Red Lake divestment.

Non-GAAP Financial Measures

Non-GAAP financial measures are intended to provide additional information only and do not have any standard meaning prescribed by U.S. 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. Unless otherwise noted, we present the Non-GAAP financial measures of our continuing operations in the tables below.

Adjusted net income (loss)

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:

Earnings before interest, taxes and depreciation and amortization and Adjusted earnings before interest, taxes and depreciation and amortization

Management uses Earnings before interest, taxes and depreciation and amortization (“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 income (loss), operating income (loss), or cash flow from operations as those terms are defined by GAAP, and do 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:

The Company uses NGM EBITDA as a non-GAAP measure to evaluate the operating performance of its investment in Nevada Gold Mines (NGM). NGM EBITDA does not represent, and should not be considered an alternative to, Income (loss) before income and mining tax and other items, as defined by GAAP, and does not necessarily indicate whether cash distributions from NGM will match NGM EBITDA. Although the Company has the ability to exert significant influence and proportionally consolidates its 38.5% interest in NGM, it does not have direct control over the operations or resulting revenues and expenses of its investment in NGM. The Company believes that NGM EBITDA provides useful information to investors and others in understanding and evaluating the operating results of its investment in NGM, in the same manner as management and the Board of Directors. Income (loss) before income and mining tax and other items is reconciled to NGM EBITDA as follows:

Free Cash Flow

Management uses Free Cash Flow as a non-GAAP measure to analyze cash flows generated from operations. Free Cash Flow is Net cash provided by (used in) operating activities less Net cash provided by (used in) operating activities of discontinued operations less Additions to property, plant and mine development as presented on the Condensed Consolidated Statements of Cash Flows. The Company believes Free Cash Flow is also useful as one of the bases for comparing the Company’s performance with its competitors. Although Free Cash Flow and similar measures are frequently used as measures of cash flows generated from operations by other companies, the Company’s calculation of Free Cash Flow is not necessarily comparable to such other similarly titled captions of other companies.

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 the Company’s performance, or as an alternative to cash flows from operating activities as a measure of liquidity as those terms are defined by GAAP, and does not necessarily indicate whether cash flows will be sufficient to fund cash needs. The Company’s definition of Free Cash Flow is limited in that it does not represent residual cash flows available for discretionary expenditures due to the fact that the measure does not deduct the payments required for debt service and other contractual obligations or payments made for business acquisitions. Therefore, the Company believes it is important to view Free Cash Flow as a measure that provides supplemental information to the Company’s Condensed Consolidated Statements of Cash Flows.

The following table sets forth a reconciliation of Free Cash Flow, a non-GAAP financial measure, to Net cash provided by (used in) operating activities, which the Company believes to be the GAAP financial measure most directly comparable to Free Cash Flow, as well as information regarding Net cash provided by (used in) investing activities and Net cash provided by (used in) financing activities.

Costs applicable to sales per ounce/gold equivalent ounce

Costs applicable to sales per ounce/gold equivalent ounce are non-GAAP financial measures. These measures are calculated by dividing the costs applicable to sales of gold and other metals by gold ounces or gold equivalent ounces sold, respectively. These measures are calculated for the periods presented on a consolidated basis. Costs applicable to sales per ounce/gold equivalent ounce 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

Costs applicable to sales per gold equivalent ounce

Costs applicable to sales per ounce for Nevada Gold Mines (NGM)

All-In Sustaining Costs

Newmont has developed 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 our continuing 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 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 provides investors 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 (i.e. non-sustaining) 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:

Costs applicable to sales. Includes all direct and indirect costs related to current production incurred to execute the current mine plan. We exclude certain exceptional or unusual amounts from Costs applicable to sales (“CAS”), such as significant revisions to recovery amounts. 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 Depreciation and amortization and Reclamation and remediation, which is consistent with our presentation of CAS on the Condensed Consolidated Statements of Operations. 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 Condensed Consolidated Statements of Operations less the amount of CAS attributable to the production of other metals at our Peñasquito, Boddington, and Phoenix mines. The other metals CAS at those mine sites is disclosed in Note 4 to the Condensed Consolidated Financial Statements. The allocation of CAS between gold and other metals at the Peñasquito, Boddington, and Phoenix mines is based upon the relative sales value of gold and other metals produced during the period.

Reclamation costs. Includes accretion expense related to reclamation liabilities and the amortization of the related Asset Retirement Cost (“ARC”) for the Company’s operating properties. Accretion related to the reclamation liabilities and the amortization of the ARC assets for reclamation does not reflect annual cash outflows but are calculated in accordance with GAAP. The accretion and amortization reflect the periodic costs of reclamation associated with current production and are therefore included in the measure. The allocation of these costs to gold and other metals is determined using the same allocation used in the allocation of CAS between gold and other metals at the Peñasquito, Boddington, and Phoenix mines.

Advanced projects, research and development and exploration. Includes incurred expenses related to projects that are designed to sustain current production and exploration. We note that as current resources are depleted, exploration and advanced projects are necessary for us to replace the depleting reserves or enhance the recovery and processing of the current reserves to sustain production at existing operations. As these costs relate to sustaining our production, and are 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 Condensed Consolidated Statements of Operations less incurred expenses related to the development of new operations, or related to major projects at existing operations where these projects will materially benefit the operation in the future. The allocation of these costs to gold and other metals is determined using the same allocation used in the allocation of CAS between gold and other metals at the Peñasquito, Boddington, and Phoenix mines.

General and administrative. Includes costs related to administrative tasks not directly related to current production, but rather related to support our corporate structure and fulfill 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. We exclude certain exceptional or unusual expenses from Other expense, net, such as restructuring, as these are not indicative to sustaining our current operations. Furthermore, this adjustment to Other expense, net is also consistent with the nature of the adjustments made to Net income (loss) attributable to Newmont stockholders as disclosed in the Company’s non-GAAP financial measure Adjusted net income (loss). The allocation of these costs to gold and other metals is determined using the same allocation used in the allocation of CAS between gold and other metals at the Peñasquito, Boddington, and Phoenix 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 on our Condensed Consolidated Statements of Operations. The allocation of these costs to gold and other metals is determined using the same allocation used in the allocation of CAS between gold and other metals at the Peñasquito, Boddington, and Phoenix mines.

Sustaining capital and finance lease payments. We determined sustaining capital and finance lease payments as those capital expenditures and finance lease payments that are necessary to maintain current production and execute the current mine plan. We determined development (i.e. non-sustaining) capital expenditures and finance lease payments to be those payments used to develop new operations or related to projects at existing operations where those projects will materially benefit the operation and are excluded from the calculation of AISC. The classification of sustaining and development capital projects and finance leases is based on a systematic review of our project portfolio in light of the nature of each project. Sustaining capital and finance lease payments are relevant to the AISC metric as these are needed to maintain the Company’s current operations and provide improved transparency related to our ability to finance these expenditures from current operations. The allocation of these costs to gold and other metals is determined using the same allocation used in the allocation of CAS between gold and other metals at the Peñasquito, Boddington, and Phoenix mines.