Newmont Announces Second Quarter 2022 Results

^*

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

^**

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

^***

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

Q2'22

Q1'22

Q2'21

Average realized gold price ($ per ounce)

$

1,836

$

1,892

$

1,823

Attributable gold production (million ounces)

1.50

1.34

1.45

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

$

932

$

890

$

755

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

$

1,199

$

1,156

$

1,035

GAAP net income from continuing operations ($ millions)

$

379

$

432

$

640

Adjusted net income ($ millions)

$

362

$

546

$

670

Adjusted EBITDA ($ millions)

$

1,149

$

1,390

$

1,591

Cash flow from continuing operations ($ millions)

$

1,033

$

689

$

993

Capital expenditures ($ millions)

$

519

$

437

$

415

Free cash flow ($ millions)

$

514

$

252

$

578

¹

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

²

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

³

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

⁴

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

⁵

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

⁶

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

⁷

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

⁸

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

⁹

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

¹⁰

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

Newmont 2022 Outlook ^a

Updated
(as of July 25, 2022)

Previous
(as of Dec. 2, 2021)

Consolidated Gold Production (Moz)

5.9

6.1

Attributable Gold Production (Moz) ^b

6.0

6.2

Consolidated Gold CAS ($/oz)

900

820

Consolidated Gold AISC($/oz) ^c

1,150

1,050

Consolidated Co-Product GEO Production (Moz) ^d

1.3

1.3

Attributable Co-Product GEO Production (Moz) ^d

1.3

1.3

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

750

675

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

1,050

975

Consolidated Total GEO Production (Moz) ^d

7.2

7.4

Attributable Total GEO Production (Moz) ^d

7.3

7.5

Consolidated Total GEO CAS ($/oz) ^d

875

800

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

1,130

1,030

Consolidated Sustaining Capital Expenditures ($M)

1,000

1,000

Consolidated Development Capital Expenditures ($M)

1,100

1,400

Attributable Sustaining Capital Expenditures ($M)

925

925

Attributable Development Capital Expenditures ($M) ^e

1,100

1,400

General & Administrative ($M)

270

260

Interest Expense ($M)

200

225

Depreciation and Amortization ($M)

2,300

2,300

Exploration & Advanced Projects ($M)

450

450

Adjusted Tax Rate ^f,g

30% - 34%

30% - 34%

^a

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

^b

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

^c

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

^d

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

^e

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

^f

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

^g

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

Three Months Ended June 30,

Six Months Ended June 30,

Operating Results

2022

2021

% Change

2022

2021

% Change

Attributable Sales (koz)

Attributable gold ounces sold ⁽¹⁾

1,455

1,383

5

%

2,746

2,744

-

%

Attributable gold equivalent ounces sold

333

302

10

%

683

629

9

%

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

Average realized gold price

$

1,836

$

1,823

1

%

$

1,863

$

1,788

4

%

Average realized copper price

$

2.99

$

4.37

(32

) %

$

3.81

$

4.30

(11

) %

Average realized silver price

$

17.42

$

23.00

(24

) %

$

18.85

$

21.27

(11

) %

Average realized lead price

$

0.80

$

1.02

(22

) %

$

0.94

$

0.95

(1

) %

Average realized zinc price

$

1.08

$

1.34

(19

) %

$

1.47

$

1.19

24

%

Attributable Production (koz)

North America

316

397

(20

) %

625

810

(23

) %

South America

210

189

11

%

408

363

12

%

Australia

366

299

22

%

648

568

14

%

Africa

243

202

20

%

441

407

8

%

Nevada

290

284

2

%

578

587

(2

) %

Total Gold (excluding equity method investments)

1,425

1,371

4

%

2,700

2,735

(1

) %

Pueblo Viejo (40%) ⁽²⁾

70

78

(10

) %

139

169

(18

) %

Total Gold

1,495

1,449

3

%

2,839

2,904

(2

) %

North America

266

260

2

%

565

545

4

%

Australia

64

43

49

%

115

75

53

%

Total Gold Equivalent Ounces

330

303

9

%

680

620

10

%

CAS Consolidated ($/oz, $/GEO)

North America

$

1,124

$

769

46

%

$

1,061

$

752

41

%

South America

$

982

$

721

36

%

$

952

$

753

26

%

Australia

$

710

$

764

(7

) %

$

734

$

757

(3

) %

Africa

$

838

$

763

10

%

$

853

$

760

12

%

Nevada

$

1,035

$

753

37

%

$

967

$

749

29

%

Total Gold

$

932

$

755

23

%

$

912

$

754

21

%

Total Gold (by-product)

$

926

$

586

58

%

$

818

$

595

37

%

North America

$

1,054

$

586

80

%

$

864

$

550

57

%

Australia

$

710

$

898

(21

) %

$

765

$

913

(16

) %

Total Gold Equivalent Ounces

$

983

$

629

56

%

$

846

$

590

43

%

AISC Consolidated ($/oz, $/GEO)

North America

$

1,437

$

985

46

%

$

1,336

$

971

38

%

South America

$

1,203

$

1,022

18

%

$

1,164

$

1,041

12

%

Australia

$

873

$

997

(12

) %

$

917

$

1,048

(13

) %

Africa

$

1,017

$

1,000

2

%

$

1,057

$

974

9

%

Nevada

$

1,263

$

985

28

%

$

1,176

$

924

27

%

Total Gold

$

1,199

$

1,035

16

%

$

1,179

$

1,037

14

%

Total Gold (by-product)

$

1,261

$

918

37

%

$

1,155

$

935

24

%

North America

$

1,349

$

761

77

%

$

1,140

$

762

50

%

Australia

$

829

$

1,113

(26

) %

$

895

$

1,231

(27

) %

Total Gold Equivalent Ounces

$

1,286

$

886

45

%

$

1,138

$

851

34

%

¹

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

²

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

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

Three Months Ended
June 30,

Six Months Ended
June 30,

2022

2021

2022

2021

Sales

$

3,058

$

3,065

$

6,081

$

5,937

Costs and expenses

Costs applicable to sales ⁽¹⁾

1,708

1,281

3,143

2,528

Depreciation and amortization

559

561

1,106

1,114

Reclamation and remediation

49

57

110

103

Exploration

62

52

100

87

Advanced projects, research and development

45

37

89

68

General and administrative

73

64

137

129

Other expense, net

22

52

57

91

2,518

2,104

4,742

4,120

Other income (expense):

Other income (loss), net

(75

)

50

(184

)

11

Interest expense, net of capitalized interest

(57

)

(68

)

(119

)

(142

)

(132

)

(18

)

(303

)

(131

)

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

408

943

1,036

1,686

Income and mining tax benefit (expense)

(33

)

(341

)

(247

)

(576

)

Equity income (loss) of affiliates

17

49

56

99

Net income (loss) from continuing operations

392

651

845

1,209

Net income (loss) from discontinued operations

8

10

24

31

Net income (loss)

400

661

869

1,240

Net loss (income) attributable to noncontrolling interests

(13

)

(11

)

(34

)

(31

)

Net income (loss) attributable to Newmont stockholders

$

387

$

650

$

835

$

1,209

Net income (loss) attributable to Newmont stockholders:

Continuing operations

$

379

$

640

$

811

$

1,178

Discontinued operations

8

10

24

31

$

387

$

650

$

835

$

1,209

Weighted average common shares (millions):

Basic

794

801

793

801

Effect of employee stock-based awards

1

2

2

1

Diluted

795

803

795

802

Net income (loss) attributable to Newmont stockholders per common share

Basic:

Continuing operations

$

0.48

$

0.80

$

1.02

$

1.47

Discontinued operations

0.01

0.01

0.03

0.04

$

0.49

$

0.81

$

1.05

$

1.51

Diluted:

Continuing operations

$

0.48

$

0.80

$

1.02

$

1.47

Discontinued operations

0.01

0.01

0.03

0.04

$

0.49

$

0.81

$

1.05

$

1.51

¹

Excludes Depreciation and amortization and Reclamation and remediation.

NEWMONT CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited, in millions)

Three Months Ended
June 30,

Six Months Ended
June 30,

2022

2021

2022

2021

Operating activities:

Net income (loss)

$

400

$

661

$

869

$

1,240

Non-cash adjustments:

Depreciation and amortization

559

561

1,106

1,114

Net loss (income) from discontinued operations

(8

)

(10

)

(24

)

(31

)

Charges from pension settlement

-

-

130

-

Deferred income taxes

(70

)

39

(111

)

14

Reclamation and remediation

46

53

103

96

Change in fair value of investments

135

(26

)

96

84

Stock-based compensation

22

21

40

38

Other non-cash adjustments

(14

)

(40

)

15

(130

)

Net change in operating assets and liabilities

(37

)

(266

)

(502

)

(591

)

Net cash provided by (used in) operating activities of continuing operations

1,033

993

1,722

1,834

Net cash provided by (used in) operating activities of discontinued operations

10

2

15

2

Net cash provided by (used in) operating activities

1,043

995

1,737

1,836

Investing activities:

?

?

Additions to property, plant and mine development

(519

)

(415

)

(956

)

(814

)

Contributions to equity method investees

(39

)

(45

)

(91

)

(72

)

Payment relating to sale of La Zanja

-

-

(45

)

-

Proceeds from asset and investment sales

32

22

41

85

Return of investment from equity method investees

26

-

39

18

Acquisitions, net

(15

)

(328

)

(15

)

(328

)

Purchases of investments

(4

)

(12

)

(8

)

(16

)

Other

4

1

1

-

Net cash provided by (used in) investing activities

(515

)

(777

)

(1,034

)

(1,127

)

Financing activities:

?

?

Dividends paid to common stockholders

(437

)

(440

)

(873

)

(881

)

Acquisition of noncontrolling interests

(48

)

-

(348

)

-

Distributions to noncontrolling interests

(44

)

(43

)

(103

)

(97

)

Repayment of debt

-

(550

)

(89

)

(550

)

Funding from noncontrolling interests

24

18

56

48

Payments for withholding of employee taxes related to stock-based compensation

-

(1

)

(36

)

(29

)

Payments on lease and other financing obligations

(15

)

(18

)

(34

)

(36

)

Repurchases of common stock

-

(134

)

-

(134

)

Other

(2

)

13

10

13

Net cash provided by (used in) financing activities

(522

)

(1,155

)

(1,417

)

(1,666

)

Effect of exchange rate changes on cash, cash equivalents and restricted cash

(12

)

2

(9

)

-

Net change in cash, cash equivalents and restricted cash

(6

)

(935

)

(723

)

(957

)

Cash, cash equivalents and restricted cash at beginning of period

4,376

5,626

5,093

5,648

Cash, cash equivalents and restricted cash at end of period

$

4,370

$

4,691

$

4,370

$

4,691

NEWMONT CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited, in millions)

Three Months Ended
June 30,

Six Months Ended
June 30,

2022

2021

2022

2021

Reconciliation of cash, cash equivalents and restricted cash:

?

?

Cash and cash equivalents

$

4,307

$

4,583

$

4,307

$

4,583

Restricted cash included in Other current assets

-

1

-

1

Restricted cash included in Other non-current assets

63

107

63

107

Total cash, cash equivalents and restricted cash

$

4,370

$

4,691

$

4,370

$

4,691

NEWMONT CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited, in millions)

At June 30,
2022

At December 31,
2021

ASSETS

Cash and cash equivalents

$

4,307

$

4,992

Trade receivables

364

337

Investments

51

82

Inventories

922

930

Stockpiles and ore on leach pads

752

857

Other current assets

511

498

Current assets

6,907

7,696

Property, plant and mine development, net

24,131

24,124

Investments

3,203

3,243

Stockpiles and ore on leach pads

1,788

1,775

Deferred income tax assets

209

269

Goodwill

2,771

2,771

Other non-current assets

681

686

Total assets

$

39,690

$

40,564

LIABILITIES

Accounts payable

$

583

$

518

Employee-related benefits

471

386

Income and mining taxes payable

178

384

Lease and other financing obligations

98

106

Debt

-

87

Other current liabilities

1,121

1,173

Current liabilities

2,451

2,654

Debt

5,568

5,565

Lease and other financing obligations

507

544

Reclamation and remediation liabilities

5,844

5,839

Deferred income tax liabilities

1,976

2,144

Employee-related benefits

371

439

Silver streaming agreement

868

910

Other non-current liabilities

506

608

Total liabilities

18,091

18,703

Contingently redeemable noncontrolling interest

-

48

EQUITY

Common stock

1,278

1,276

Treasury stock

(236

)

(200

)

Additional paid-in capital

17,334

17,981

Accumulated other comprehensive income (loss)

(11

)

(133

)

Retained earnings (accumulated deficit)

3,056

3,098

Newmont stockholders' equity

21,421

22,022

Noncontrolling interests

178

(209

)

Total equity

21,599

21,813

Total liabilities and equity

$

39,690

$

40,564

Three Months Ended
June 30, 2022

Six Months Ended
June 30, 2022

per share data ⁽¹⁾

per share data ⁽¹⁾

basic

diluted

basic

diluted

Net income (loss) attributable to Newmont stockholders

$

387

$

0.49

$

0.49

$

835

$

1.05

$

1.05

Net loss (income) attributable to Newmont stockholders from discontinued operations

(8

)

(0.01

)

(0.01

)

(24

)

(0.03

)

(0.03

)

Net income (loss) attributable to Newmont stockholders from continuing operations

379

0.48

0.48

811

1.02

1.02

Pension settlement ⁽²⁾

-

-

-

130

0.16

0.16

Change in fair value of investments ⁽³⁾

135

0.17

0.17

96

0.13

0.13

(Gain) loss on asset and investment sales ⁽⁴⁾

-

-

-

35

0.04

0.04

Settlement costs ⁽⁵⁾

5

-

-

18

0.03

0.03

Reclamation and remediation charges ⁽⁶⁾

-

-

-

13

0.02

0.02

Impairment of long-lived and other assets ⁽⁷⁾

2

-

-

2

-

-

COVID-19 specific costs ⁽⁸⁾

1

-

-

1

-

-

Restructuring and severance ⁽⁹⁾

-

-

-

1

-

-

Other ⁽¹⁰⁾

(18

)

(0.03

)

(0.03

)

(18

)

(0.03

)

(0.03

)

Tax effect of adjustments ⁽¹¹⁾

(25

)

(0.03

)

(0.03

)

(62

)

(0.08

)

(0.08

)

Valuation allowance and other tax adjustments ⁽¹²⁾

(117

)

(0.13

)

(0.13

)

(119

)

(0.14

)

(0.15

)

Adjusted net income (loss)

$

362

$

0.46

$

0.46

$

908

$

1.15

$

1.14

?

Weighted average common shares (millions): ⁽¹³⁾

794

795

793

795

¹

Per share measures may not recalculate due to rounding.

²

Pension settlement, included in Other income (loss), net, represents pension settlement charges in 2022 related to the annuitization of certain defined benefit plans. For further information, refer to Note 7 of the Condensed Consolidated Financial Statements.

³

Change in fair value of investments, included in Other income (loss), net, primarily represents unrealized gains and losses related to the Company's investment in current and non-current marketable and other equity securities. For further information regarding our investments, refer to Note 10 of the Condensed Consolidated Financial Statements.

⁴

(Gain) loss on asset and investment sales, included in Other income (loss), net, primarily represents the loss recognized on the sale of the La Zanja equity method investment. For further information, refer to Note 7 of the Condensed Consolidated Financial Statements.

⁵

Settlement costs, included in Other expense, net, primarily are comprised of legal settlement and a voluntary contribution made to support humanitarian efforts in Ukraine.

⁶

Reclamation and remediation charges, included in Reclamation and remediation, represent revisions to reclamation and remediation plans at the Company's former operating properties and historic mining operations that have entered the closure phase and have no substantive future economic value. Refer to Note 5 of the Condensed Consolidated Financial Statement for further information.

⁷

Impairment of long-lived and other assets, included in Other expense, net, represents non-cash write-downs of various assets that are no longer in use and materials and supplied inventories.

⁸

COVID-19 specific costs, included in Other expense, net, primarily include amounts distributed from Newmont Global Community Support Fund to help host communities, governments and employees combat the COVID-19 pandemic.

⁹

Restructuring and severance, included in Other expense, net, primarily represents severance and related costs associated with significant organizational or operating model changes implemented by the Company.

¹⁰

Primarily comprised of a reimbursement of certain historical Goldcorp operational expenses related to a legacy project that reached commercial production in the second quarter of 2022, included in Other income (loss), net.

¹¹

The tax effect of adjustments, included in Income and mining tax benefit (expense), represents the tax effect of adjustments in footnotes (2) through (10), as described above, and are calculated using the applicable regional tax rate.

¹²

Valuation allowance and other tax adjustments, included in Income and mining tax benefit (expense), is recorded for items such as foreign tax credits, capital losses, disallowed foreign losses, and the effects of changes in foreign currency exchange rates on deferred tax assets and deferred tax liabilities. The adjustment for the three and six months ended June 30, 2022 reflects the net increase or (decrease) to net operating losses, capital losses, tax credit carryovers, and other deferred tax assets subject to valuation allowance of $37 and $49, the effects of changes in foreign exchange rates on deferred tax assets and liabilities of $(23) and $(26), net reductions to the reserve for uncertain tax positions of $(5) and $(17), other tax adjustments of $(1) and $-, and a tax settlement in Mexico of $(125) and $(125). For further information on reductions to the reserve for uncertain tax positions, refer to Note 8 of the Condensed Consolidated Financial Statements.

¹³

Adjusted net income (loss) per diluted share is calculated using diluted common shares in accordance with GAAP.

Three Months Ended
June 30, 2021

Six Months Ended
June 30, 2021

per share data ⁽¹⁾

per share data ⁽¹⁾

basic

diluted

basic

diluted

Net income (loss) attributable to Newmont stockholders

$

650

$

0.81

$

0.81

$

1,209

$

1.51

$

1.51

Net loss (income) attributable to Newmont stockholders from discontinued operations

(10

)

(0.01

)

(0.01

)

(31

)

(0.04

)

(0.04

)

Net income (loss) attributable to Newmont stockholders from continuing operations

640

0.80

0.80

1,178

1.47

1.47

Change in fair value of investments ⁽²⁾

(26

)

(0.03

)

(0.03

)

84

0.10

0.10

Gain (loss) on asset and investment sales ⁽³⁾

-

-

-

(43

)

(0.05

)

(0.05

)

Reclamation and remediation charges ⁽⁴⁾

20

0.02

0.02

30

0.04

0.04

Impairment of long-lived and other assets ⁽⁵⁾

11

0.01

0.01

12

0.01

0.01

Settlement costs ⁽⁶⁾

8

0.01

0.01

11

0.01

0.01

Restructuring and severance, net ⁽⁷⁾

5

-

-

9

0.01

0.01

COVID-19 specific costs ⁽⁸⁾

1

-

-

2

-

-

Tax effect of adjustments ⁽⁹⁾

(11

)

-

-

(30

)

(0.03

)

(0.03

)

Valuation allowance and other tax adjustments, net ⁽¹⁰⁾

22

0.03

0.02

11

0.02

0.02

Adjusted net income (loss)

$

670

$

0.84

$

0.83

$

1,264

$

1.58

$

1.58

?

Weighted average common shares (millions): ⁽¹¹⁾

801

803

801

802

¹

Per share measures may not recalculate due to rounding.

²

Change in fair value of investments, included in Other income (loss), net, primarily represents unrealized gains and losses on marketable and other equity securities and our investment instruments. For further information regarding our investments, refer to Note 10 of the Condensed Consolidated Financial Statements.

³

(Gain) loss on asset and investment sales, included in Other income (loss), net, primarily represents a gain on the sale of TMAC. For further information, refer to Note 7 of the Condensed Consolidated Financial Statements.

⁴

Reclamation and remediation charges, included in Reclamation and remediation, represent revisions to reclamation and remediation plans at the Company's former operating properties and historic mining operations that have entered the closure phase and have no substantive future economic value. Refer to Note 5 of the Condensed Consolidated Financial Statements for further information.

⁵

Impairment of long-lived and other assets, included in Other expense, net, represents non-cash write-downs of various assets that are no longer in use and materials and supplies inventories.

⁶

Settlement costs, included in Other expense, net, primarily represents certain costs associated with legal and other settlements.

⁷

Restructuring and severance, net, included in Other expense, net, primarily represents severance and related costs associated with significant organizational or operating model changes implemented by the Company. Total amount is presented net of income (loss) attributable to noncontrolling interests of $- and $(1), respectively.

⁸

COVID-19 specific costs, included in Other expense, net, primarily includes amounts distributed from the Newmont Global Community Support Fund to help host communities, governments and employees combat the COVID-19 pandemic. Adjusted net income (loss) has not been adjusted for $19 and $40, respectively, of incremental COVID-19 costs incurred as a result of actions taken to protect against the impacts of the COVID-19 pandemic at our operational sites. Refer to Note 6 of the Condensed Consolidated Financial Statements for further information.

⁹

The tax effect of adjustments, included in Income and mining tax benefit (expense), represents the tax effect of adjustments in footnotes (2) through (8), as described above, and are calculated using the applicable regional tax rate.

¹⁰

Valuation allowance and other tax adjustments, net, included in Income and mining tax benefit (expense), is recorded for items such as foreign tax credits, alternative minimum tax credits, capital losses, disallowed foreign losses, and the effects of changes in foreign currency exchange rates on deferred tax assets and deferred tax liabilities. The adjustment for the three and six months ended June 30, 2021 is due to increases or (decreases) to net operating losses, tax credit carryovers and other deferred tax assets subject to valuation allowance of $9 and $30 respectively, the effects of changes in foreign exchange rates on deferred tax assets and liabilities of $11 and $(17) respectively, changes to the reserve for uncertain tax positions of $22 and $22 respectively, and other tax adjustments of $(17) and $(19), respectively. Total amount is presented net of income (loss) attributable to noncontrolling interests of $(3) and $(5), respectively.

¹¹

Adjusted net income (loss) per diluted share is calculated using diluted common shares, which are calculated in accordance with GAAP.

?

Three Months Ended
June 30,

Six Months Ended
June 30,

?

2022

2021

2022

2021

Net income (loss) attributable to Newmont stockholders

$

387

$

650

$

835

$

1,209

Net income (loss) attributable to noncontrolling interests

13

11

34

31

Net loss (Income) from discontinued operations

(8

)

(10

)

(24

)

(31

)

Equity loss (income) of affiliates

(17

)

(49

)

(56

)

(99

)

Income and mining tax expense (benefit)

33

341

247

576

Depreciation and amortization

559

561

1,106

1,114