<PAGE> 1
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM 10-Q
(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended MARCH 31, 1995
or
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
-------------- --------------
Commission File Number: 1-1153
NEWMONT MINING CORPORATION
- - ---------------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
Delaware 13-1806811
- - ------------------------------- ------------------------------------
(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
1700 Lincoln Street, Denver, Colorado 80203
- - ------------------------------------------ ---------
(Address of principal executive offices) (Zip Code)
303-863-7414
----------------------------------------------------
(Registrant's telephone number, including area code)
- - ---------------------------------------------------------------------------
(Former name, address and fiscal year, if changed since last report)
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act
of 1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to
such filing requirements for the past 90 days. [X] Yes [ ] No
There were 86,107,416 shares of common stock outstanding on April 28, 1995.
Exhibit index is on page 17.
There are 22 pages included in this report.
<PAGE> 2
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
NEWMONT MINING CORPORATION AND SUBSIDIARIES
Statements of Consolidated Income
(In thousands, except per share)
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended
March 31,
-----------------------
1995 1994
--------- ---------
<S> <C> <C>
Sales and other income
Sales $ 134,459 $ 149,769
Dividends, interest and other 17,282 1,838
--------- ---------
151,741 151,607
--------- ---------
Costs and expenses
Costs applicable to sales 83,184 82,927
Depreciation, depletion and amortization 24,720 22,906
Exploration 8,452 11,554
General and administrative 11,902 8,896
Interest, net of capitalized interest
of $2,810 in 1995 and $4,749 in 1994 8,716 165
Other 2,041 1,935
--------- ---------
139,015 128,383
--------- ---------
Equity in income of affiliated companies 6,145 1,460
--------- ---------
Pretax income 18,871 24,684
Income tax provision 1,873 965
Minority interest in income of Newmont Gold
Company 1,405 2,130
--------- ---------
Net income 15,593 21,589
Preferred stock dividends 3,953 3,953
--------- ---------
Net income applicable to common shares $ 11,640 $ 17,636
========= =========
Net income per common share $ 0.14 $ 0.20
========= =========
Weighted average number of shares of common
stock and common stock equivalents outstanding 86,149 86,138
Cash dividends declared per common share $ 0.12 $ 0.12
</TABLE>
<PAGE> 3
NEWMONT MINING CORPORATION AND SUBSIDIARIES
Consolidated Balance Sheets
(In thousands)
(Unaudited)
<TABLE>
<CAPTION>
March 31, December 31,
----------- ------------
1995 1994
----------- ------------
<S> <C> <C>
Assets
Cash and cash equivalents $ 110,518 $ 160,637
Short-term investments 13,438 13,438
Accounts receivable 24,167 37,597
Inventories 133,665 130,931
Other 23,690 27,531
---------- ----------
Current assets 305,478 370,134
Property, plant and mine development, net 1,142,304 1,119,286
Other 188,022 167,237
---------- ----------
Total assets $1,635,804 $1,656,657
========== ==========
Liabilities
Short-term debt $ 15,739 $ 15,739
Current portion of long-term debt 5,800 -
Accounts payable 28,436 32,723
Other accrued liabilities 93,733 104,753
---------- ----------
Current liabilities 143,708 153,215
Long-term debt 587,834 593,634
Reclamation and remediation liabilities 64,745 66,760
Other long-term liabilities 84,609 90,097
---------- ----------
Total liabilities 880,896 903,706
---------- ----------
Minority interest in Newmont Gold Company 79,744 79,486
---------- ----------
Contingencies
Stockholders' Equity
Preferred stock 14,375 14,375
Common stock 137,739 137,728
Capital in excess of par value 303,014 302,800
Retained earnings 220,036 218,562
---------- ----------
Total stockholders' equity 675,164 673,465
---------- ----------
Total liabilities and
stockholders' equity $1,635,804 $1,656,657
========== ==========
</TABLE>
<PAGE> 4
NEWMONT MINING CORPORATION AND SUBSIDIARIES
Statements of Consolidated Cash Flows
(In thousands)
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended
March 31,
---------------------
1995 1994
-------- --------
<S> <C> <C>
Operating activities:
Net income $ 15,593 $ 21,589
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation, depletion and amortization 24,720 22,906
Minority interest, net of dividends 158 2,130
Distributions in excess of (less than)
earnings of affiliates 2,276 (1,460)
Deferred taxes (1,151) (8,220)
-------- --------
41,596 36,945
(Increase) decrease in operating assets:
Accounts receivable 13,510 2,069
Inventories (6,698) 8,771
Other assets 5,940 1,390
Increase (decrease) in operating liabilities:
Accounts payable and accrued expenses 6,385 (8,880)
Accrued income taxes 249 9,185
Other liabilities (7,503) 1,584
Other operating 991 173
--------- --------
Net cash provided by operating activities 54,470 51,237
--------- --------
Investing activities:
Additions to property, plant and mine
development (70,673) (94,805)
Non-capital investment in joint venture (11,941) (4,029)
Other (7,842) (696)
--------- --------
Net cash used in investing activities (90,456) (99,530)
--------- --------
Financing activities:
Proceeds from long-term borrowings - 27,500
Proceeds from issuance of common stock 149 2,789
Dividends paid on preferred stock (3,953) (3,953)
Dividends paid on common stock (10,329) (10,317)
--------- --------
Net cash provided by (used in) financing
activities (14,133) 16,019
--------- --------
Net decrease in cash and cash equivalents (50,119) (32,274)
Cash and cash equivalents at beginning of period 160,637 69,750
--------- --------
Cash and cash equivalents at end of period $ 110,518 $ 37,476
========= ========
</TABLE>
<PAGE> 5
NEWMONT MINING CORPORATION AND SUBSIDIARIES
Statements of Consolidated Cash Flows
(In thousands)
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended
March 31,
---------------------
1995 1994
-------- --------
<S> <C> <C>
Supplemental information:
Interest paid, net of amounts capitalized of
$2,810 in 1995 and $4,749 in 1994 $ 414 $ (2,860)
Income taxes refunded $ 4,000 $ -
</TABLE>
<PAGE> 6
NEWMONT MINING CORPORATION AND SUBSIDIARIES
Notes to Consolidated Financial Statements
(Unaudited)
(1) Basis of Preparation of Financial Statements
These unaudited interim financial statements of Newmont Mining
Corporation and subsidiaries (collectively, the "Corporation") have been
prepared in accordance with the rules and regulations of the Securities and
Exchange Commission. Such rules and regulations allow the omission of
certain information and footnote disclosures normally included in financial
statements prepared in accordance with generally accepted accounting
principles, so long as the statements are not misleading.
In the opinion of management, these financial statements reflect all
adjustments which are necessary to a fair statement of the results for the
periods presented. All adjustments were of a normal recurring nature. These
interim financial statements should be read in conjunction with the annual
financial statements of the Corporation included in its 1994 annual report on
Form 10-K.
All the Corporation's operations are held through Newmont Gold Company
("NGC"), which is approximately 89% owned.
Certain prior year amounts have been reclassified to conform with the
current year presentation.
(2) Inventories
<TABLE>
<CAPTION>
March 31, December 31,
1995 1994
----------- ------------
(In thousands)
<S> <C> <C>
Current:
Ore and in-process $ 71,739 $ 62,196
Precious metals 27,202 34,536
Materials and supplies 32,573 31,533
Other 2,151 2,666
-------- --------
$133,665 $130,931
======== ========
Non-current:
Ore in stockpiles (included
in other assets) $ 37,015 $ 33,051
======== ========
</TABLE>
(3) Contingencies
Environmental Obligations
The Corporation is involved in several matters concerning environmental
obligations primarily associated with former mining activities. Based upon
the Corporation's best estimate of its liability for these matters, $62.9
million and $64.3 million were accrued for such liability at March 31, 1995
<PAGE> 7
and December 31, 1994, respectively, excluding $19.2 million and $18.4
million at March 31, 1995 and December 31, 1994, respectively, of reclamation
costs relating to currently producing mineral properties. These amounts are
included in other current liabilities and reclamation liabilities. Depending
upon the ultimate resolution of these matters, the Corporation believes that
it is reasonably possible that the liability for these matters could be as
much as 65% greater or 15% lower than the amount accrued at March 31, 1995.
A discussion of the environmental obligations and related insurance
receivables associated with former mining activities as of March 31, 1995
follows.
Idarado Mining Company ("Idarado") - 80.1% owned by NGC
In July 1992, the Corporation and Idarado signed a consent decree with
the State of Colorado ("State") which was agreed to by the U.S. District
Court of Colorado to settle a lawsuit brought by the State under the
Comprehensive Environmental Response, Compensation and Liability Act
("CERCLA"), generally referred to as the "Superfund Act." Idarado settled
natural resources damages and past and future response costs and provided
habitat enhancement work. In addition, Idarado agreed in the consent decree
to undertake specified remediation work related to its former mining
activities in the Telluride/Ouray area of Colorado. The Corporation's best
estimate of the cost of this work is included in the liability, as previously
discussed. If the remediation work does not meet certain measurement
criteria specified in the consent decree, the State and court reserve the
right to require Idarado to perform other remediation work. Idarado and the
Corporation have obtained a $16.3 million letter of credit to secure their
obligations under the consent decree.
Resurrection Mining Company ("Resurrection") - 100% owned by NGC
In 1983, the State of Colorado filed a lawsuit under the Superfund Act
which involves a joint venture mining operation near Leadville, Colorado in
which Resurrection is a joint venturer. This action was subsequently
consolidated with a lawsuit filed by the U. S. Environmental Protection
Agency ("EPA") in 1986. The EPA is taking the lead role on cleanup issues.
The proceedings sought to compel the defendants to remediate the impacts of
pre-existing mining activities which the government agencies claim are
causing substantial environmental problems in the area. The mining
operations of the joint venture are operated by ASARCO, the other joint
venturer. The lawsuits have named the Corporation, Resurrection, the joint
venture and ASARCO defendants in the proceedings. They are also proceeding
against other companies with interests in the area.
The EPA divided the remedial work into two phases. Phase I addresses a
drainage and access tunnel owned by the joint venture - the Yak Tunnel.
Phase II addresses the remainder of the site.
In 1988 and 1989, the EPA issued administrative orders with respect to
Phase I work for the Yak Tunnel. The joint venture, ASARCO, Resurrection
and the Corporation have collectively implemented those orders by
constructing a water treatment plant which was placed in operation in early
1992. The joint venture is in negotiations regarding remaining remedial work
for Phase I, which primarily consists of monitoring and environmental
maintenance activities.
The parties have entered into a consent decree with respect to Phase II
which apportions liabilities and responsibilities for the site among the
<PAGE> 8
various parties. The EPA has not yet completed work to define the remedies
for Phase II. Accordingly, the Corporation cannot yet determine the full
extent or cost of its share of the remedial action which will be required
under Phase II. Moreover, in addition to such action, the government
agencies may seek to recover for damages to natural resources.
Although the ultimate amount of Resurrection's and the Corporation's
share of such costs for Phase I and Phase II cannot be presently determined,
the Corporation's best estimate of its potential exposure for these costs is
included in the gross liability for these matters, as previously discussed.
Dawn Mining Company ("Dawn") - 51% owned by NGC
Dawn leased a currently inactive open-pit uranium mine on the Spokane
Indian Reservation in the State of Washington. The mine is subject to
regulation by agencies of the U. S. Department of Interior, the Bureau of
Indian Affairs and the Bureau of Land Management, as well as the EPA. Dawn
also owns a nearby uranium millsite facility.
In 1991, Dawn's lease was terminated. As a result, Dawn was required to
file a formal mine reclamation plan. Dawn does not have sufficient funds to
pay for such a reclamation plan or to pay for the closure of its mill. The
Corporation's best estimate for the future costs related to these matters is
included in the gross liability for environmental matters, as previously
discussed. Dawn has developed and has received a license for a mill closure
plan which could potentially generate the necessary funds to reclaim the mine
and the mill. The plan, however, is currently being challenged by third
parties.
The Department of Interior previously notified Dawn that when the lease
was terminated, it would seek to hold Dawn and the Corporation (as Dawn's 51%
owner) liable for any costs incurred as a result of Dawn's failure to comply
with the lease and applicable regulations. The Corporation would vigorously
contest any such claims. The Corporation cannot reasonably predict the
likelihood or outcome of any future action against Dawn or the Corporation
arising from this matter.
Insurance Receivables
Included in accounts receivable at December 31, 1994 was a net $16.7
million attributable to insurance companies for both a portion of the costs
previously expended and for estimated future costs associated with
environmental obligations covered by insurance policies associated with
former mining activities.
Prior to 1993, three of the insurance companies commenced actions
against the Corporation seeking judgments that they had no liability. In the
fall of 1993, the Corporation instituted a comprehensive lawsuit against its
carriers.
In the first quarter of 1995 settlement in the insurance litigation was
reached enabling the Corporation to realize the December 31, 1994 receivable.
Settlement discussions continue with respect to some of the litigation. The
Corporation will continue to vigorously pursue recovery in the remaining
litigation and believes that it is reasonably possible that additional
amounts will be recovered.
<PAGE> 9
Class Action Complaint
In March 1995, a class action complaint was filed against the
Corporation and others in which the plaintiffs allege exposure to certain
allegedly radioactive or otherwise hazardous waste materials produced at a
ferroalloy production plant in Guernsey County, Ohio. This plant was owned
until 1987 by Foote Mineral Company, a former subsidiary of the Corporation.
The complaint seeks $500 million of compensatory damages jointly and
severally against all defendants, $63 million in punitive damages against the
Corporation, the recovery of response costs and the establishment of a
medical monitoring fund under CERCLA. Injunctive relief requiring defendants
to remove the allegedly hazardous materials from the property of the
plaintiffs is also requested.
The Corporation is investigating this recently filed action and intends
to vigorously contest all alleged liability in this matter.
Additional Interest in Minera Yanacocha
In September 1994, an affiliate of Bureau de Recherches Geologiques et
Minieres, the geological and mining bureau of the French government ("BRGM"),
announced its intention to transfer its 24.7% interest in Minera Yanacocha,
S.A. to another entity. NGC and Compania de Minas Buenaventura, S.A.
("Buenaventura"), 38.0% and 32.3% owners of Minera Yanacocha, respectively,
filed suit in Peru to seek enforcement of a provision in the bylaws of Minera
Yanacocha, giving shareholders preemptive rights on the sale of any
shareholder's interest. In February 1995, an appellate court in Peru issued
a preliminary ruling in favor of NGC and Buenaventura. NGC elected to
exercise its preemptive rights to acquire its proportionate share of the
additional interest and in accordance with the court ruling deposited $48.6
million with a Peruvian bank, pending the final resolution of the case. NGC
borrowed the $48.6 million from the same Peruvian bank with the right of
setoff against the deposit. Part of the final resolution of the case, if
resolved in NGC's favor, will determine how much NGC must pay for the
interest, which may be more or less than the amount deposited. NGC intends
to fund the purchase of the additional interest with its available cash or
credit facilities. If NGC is successful in acquiring the interest it would
own 51% of Minera Yanacocha. This additional interest will not be reflected
in the financial statements until a final determination is made by the
Peruvian courts.
(5) Supplementary Data
The ratio of earnings to fixed charges and ratio of earnings to combined
fixed charges and preferred stock dividends for the quarter ended March 31,
1995 were 2.6 and 1.9, respectively. The Corporation guarantees certain
third party debt which had total interest obligations of $0.3 million for the
quarter ended March 31, 1995. The Corporation has not been required to pay
any interest on these obligations in the past, nor does it expect to have to
pay any amounts with respect to such debt in the future. Therefore, such
amounts have not been included in the ratio of earnings to fixed charges or
the ratio of earnings to combined fixed charges and preferred stock
dividends.
(6) Subsequent Events
On April 5, 1995, NGC sold its 10.7% interest in Southern Peru Copper
Corporation for $116.4 million, which will result in a pre-tax gain of $113.2
<PAGE> 10
million, or approximately $72 million, or $0.75 per share on an after-tax
basis, that will be recognized in the second quarter of 1995.
<PAGE> 11
Item 2. Management's Discussion and Analysis of Results of
Operations and Financial Condition
The following discussion summarizes the results of operations of Newmont
Mining Corporation ("Newmont") and its subsidiaries (collectively, the
"Corporation") for the quarters ended March 31, 1995 and 1994 and changes in
its financial condition from December 31, 1994. All the Corporation's
operations are held through Newmont Gold Company ("NGC"), which is
approximately 89% owned. This discussion should be read in conjunction with
the Management's Discussion and Analysis included in the Corporation's 1994
annual report on Form 10-K.
RESULTS OF OPERATIONS
The Corporation earned $15.6 million, or $0.14 per share, in the first
quarter of 1995 compared with $21.6 million, or $0.20 per share, in the first
quarter of 1994. This decrease in income was attributable to decreased gold
production and increased costs at the Carlin, Nevada operation as discussed
below.
During the first quarter of 1995, consolidated gold sales were 354,900
ounces at an average price of $379 per ounce compared to 389,700 ounces at an
average price of $384 per ounce in the first quarter of 1994. Production for
both quarters is attributable entirely to the Carlin, Nevada operations. The
34,800 ounce decline in production decreased sales revenue by $13.4 million
and the $5 decline in the per ounce sales price decreased sales revenue by
$1.9 million. The decline in production in the 1995 quarter was impacted by
the closure of three mills and the Rain open pit mine after the first quarter
of 1994. During the second half of 1995, production at the Carlin operation
will benefit from increased production from the refractory ore treatment
plant. Because of a fire in November 1994, the facility only operated at
partial capacity for the quarter; however, full capacity is anticipated by
mid-1995. The Corporation expects to produce 1.6 million ounces in 1995 from
the Carlin operations. In addition, production from the Zarafshan-Newmont
Joint Venture is expected to begin in mid-1995.
During the first quarter of 1995 NGC's equity income from its 38%
interest in Minera Yanacocha S.A. ("Minera Yanacocha") increased to $7.1
million from $2.0 million in the 1994 first quarter. Minera Yanacocha
produced 121,900 ounces, or 46,300 ounces attributable to NGC's interest, in
the 1995 first quarter at operating costs, excluding depreciation, depletion
and amortization ("DD&A"), of $125 per ounce. This compares to 45,600
ounces, or 17,300 ounces attributable to NGC's interest, in the 1994 first
quarter at operating costs, excluding DD&A, of $150 per ounce. The increase
in production is primarily due to a second mine coming into production in
late 1994.
Dividends, interest and other income in the 1995 quarter includes $11.8
million for business interruption insurance recorded for the start-up
problems with the refractory ore treatment plant and $2.6 million in higher
dividends from NGC's investment in Southern Peru Copper Corporation. In
April 1995, NGC sold its 10.7% interest in Southern Peru Copper Corporation
for $116.4 million, which will result in a pre-tax gain of $113.2 million, or
approximately $72 million, or $0.75 per share on an after-tax basis, that
will be recognized in the second quarter of 1995.
The Corporation's costs applicable to sales in the aggregate were
approximately the same between the two quarters. On a per ounce of gold sold
basis, costs applicable to sales were higher in the first quarter of 1995
<PAGE> 12
compared to the first quarter of 1994 as a result of the lower Carlin
production. The following table summarizes the significant components of
these costs per ounce of gold sold:
<TABLE>
<CAPTION>
Three Months Ended
March 31,
------------------
1995 1994
---- ----
<S> <C> <C>
Production costs $192 $182
Royalties 36 24
Other 6 6
---- ----
$234 $212
==== ====
</TABLE>
The increase in production costs on a per ounce of gold sold basis in the
1995 quarter was the result of higher milling costs associated with the
refractory ore treatment plant, which as previously mentioned, only operated
at partial capacity during the first quarter of 1995. In addition, the
facility was shut-down at the end of the first quarter into the beginning of
the second quarter for repairs and maintenance. Although per ounce
production costs may continue to increase into the second quarter, they
should decline during the second half of the year as the refractory ore
treatment plant achieves full operating capacity and the lower cost
Zarafshan-Newmont Joint Venture comes into full operation.
The increase in royalty costs per ounce is due to the production of a
higher proportion of royalty-burdened ore in 1995 compared to 1994, which is
expected to continue throughout the year, although at not as great a
difference as experienced in the first quarter. For the year, per ounce
royalty costs are expected to be 15% to 20% higher than the $25 per ounce
experienced during 1994.
In addition to expensed production costs, during the 1995 first quarter
the Corporation capitalized $9.9 million of mining costs associated with
deposits having diverse waste-to-ore ratios, the largest being the Post
deposit. This compares to $6.7 million in the 1994 first quarter. The
increase is attributable to more tons mined in the 1995 quarter and is
expected to continue throughout the year.
During the first quarter of 1995, the Corporation determined that
studies on the Batu Hijau project confirmed that this large porphyry
copper/gold deposit could be economically developed. Therefore, costs
incurred on this project in the first quarter of 1995 of $5.0 million were
capitalized, and all future development costs will be capitalized.
DD&A increased $1.8 million in the 1995 quarter due to depreciation of
the refractory ore treatment plant. There was no comparable depreciation in
the 1994 quarter.
First quarter 1995 exploration expenses decreased $3.1 million as the
Corporation plans on lower exploration spending in 1995.
<PAGE> 13
General and administrative expenses were higher in the 1995 quarter than
the 1994 quarter due to the increased international focus of the
Corporation's operations. In that general and administrative expenses
increased in the latter quarters of 1994, the increase in general and
administrative expenses is not expected to be as great for the remaining
quarters of 1995 compared to 1994.
Net interest expense increased $8.6 million in the 1995 quarter compared
with the 1994 quarter. Interest expense increased from $4.9 million in the
1994 quarter to $11.5 million in the 1995 quarter primarily due to interest
expense associated with the sale-leaseback transaction of the refractory ore
treatment plant completed in September 1994. With the completion of the
refractory ore treatment plant in late 1994, capitalized interest in the 1995
quarter is $2.8 million compared with $4.7 million in the 1994 quarter.
The effective tax rate was approximately 10% in the first quarter of
1995 compared to approximately 4% in the first quarter of 1994. Both years'
effective rates are low as a result of the estimated amount of percentage
depletion for each year being a high proportion of estimated pretax financial
income for each year.
LIQUIDITY AND CAPITAL RESOURCES
During the first quarter of 1995, the Corporation's cash outlays
included $70.7 million of capital expenditures, $11.9 million to carry the
partners' share of the costs in the Zarafshan-Newmont Joint Venture and $14.3
million in dividends. Of the first quarter 1995 capital expenditures,
approximately $38.8 million was spent on projects at the Carlin operations
primarily associated with the refractory ore treatment plant, capitalized
mining costs, leach pad construction and underground development. In
addition, $13.4 million for mine site development on the Minahasa project in
Indonesia and $11.2 million for the Zarafshan-Newmont Joint Venture project
was spent in the first quarter. Cash flow from operating activities was
$54.5 million.
Cash requirements during 1995 are expected to exceed operating cash
flow. However, in the second quarter, the Corporation sold its investment in
Southern Peru Copper Corporation for $116.4 million and the Zarafshan-Newmont
Joint Venture closed on an additional $30.0 million of project financing, $15
million of which is attributable to the Corporation. These funds, in
addition to the $160.6 million of cash and cash equivalents at December 31,
1994, will cover any short-fall in operating cash flow for the year.
In February 1995, a preliminary ruling in the Peruvian courts was
received which permits NGC to exercise its preemptive rights with regards to
the 24.7% interest held by the Bureau de Recherches Geologiques et Minieres
in Minera Yanacocha. NGC exercised its right by depositing $48.6 million
with a Peruvian bank as stipulated by the court ruling. This amount is only
a provisional amount assigned by the court and the actual price to be paid
for the interest will be the subject of a future court determination. The
monies deposited with the bank were borrowed from the same bank with a right
of setoff against the deposit. If NGC is ultimately successful in acquiring
this additional interest, its total interest in Minera Yanacocha would
increase to 51%. This additional interest will not be reflected in the
financial statements until a final determination is made by the Peruvian
courts.
<PAGE> 14
The decrease in accounts receivable during the first quarter of 1995 is
due to receipt of insurance monies related to the start-up problems of the
refractory ore treatment plant and settlement of litigation of environmental
obligations associated with former mining activities.
<PAGE> 15
PART II - OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits:
11 - Statement re Computation of Per Share Earnings.
12.1 - Statement re Computation of Ratio of Earnings to Fixed Charges.
12.2 - Statement re Computation of Ratios of Earnings to Combined Fixed
Charges and Preferred Stock Dividends.
27 - Financial Data Schedule
(b) Reports on Form 8-K:
No reports were filed on Form 8-K during the quarter ended March 31,
1995.
<PAGE> 16
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
NEWMONT MINING CORPORATION
(Registrant)
Date: May 9, 1995 /s/ WAYNE W. MURDY
--------------------------------
Wayne W. Murdy
Senior Vice President and
Chief Financial Officer
(Principal Financial Officer)
Date: May 9, 1995 /s/ GARY E. FARMAR
--------------------------------
Gary E. Farmar
Vice President and Controller
(Principal Accounting Officer)
<PAGE> 17
EXHIBIT INDEX
<TABLE>
<CAPTION>
Page
----
<S> <C> <C>
Exhibit 11 - Statement re Computation of Per Share Earnings
Exhibit 12.1 - Statement re Computation of Ratios of Earnings
to Fixed Charges
Exhibit 12.2 - Statement re Computation of Ratios of Earnings
to Combined Fixed Charges and Preferred Stock
Dividends
Exhibit 27 - Financial Data Schedule
</TABLE>
<PAGE> 1
EXHIBIT 11
Page 1 of 2
NEWMONT MINING CORPORATION AND SUBSIDIARIES
COMPUTATION OF PER SHARE EARNINGS
(In thousands, except per share)
PRIMARY EARNINGS PER SHARE CALCULATIONS
<TABLE>
<CAPTION>
Three Months Ended
March 31,
----------------------
1995 1994
--------- --------
<S> <C> <C>
INCOME DATA:
Net income $ 15,593 $ 21,589
Preferred stock dividends 3,953 3,953
--------- --------
Net income applicable to common shares $ 11,640 $ 17,636
========= ========
COMMON AND COMMON EQUIVALENT SHARES:
Weighted average common shares 86,082 85,851
Equivalent common shares from
stock options 67 287
--------- --------
Common and common equivalent shares 86,149 86,138
========= ========
EARNINGS PER COMMON SHARE:
Net income per common and common
equivalent shares $ 0.14 $ 0.20
========= ========
</TABLE>
<PAGE> 2
EXHIBIT 11
Page 2 of 2
NEWMONT MINING CORPORATION AND SUBSIDIARIES
COMPUTATION OF PER SHARE EARNINGS
(In thousands, except per share)
FULLY DILUTED EARNINGS PER SHARE CALCULATIONS
<TABLE>
<CAPTION>
Three Months Ended
March 31,
----------------------
1995 1994
-------- --------
<S> <C> <C>
INCOME DATA:
Net income applicable to common shares $ 15,593 $ 21,589
======== ========
COMMON AND COMMON EQUIVALENT SHARES:
Weighted average common shares 86,082 85,851
Equivalent common shares from
stock options 249 338
Equivalent common shares from
conversion of preferred stock 7,899 7,899
-------- --------
Common and common equivalent shares 94,230 94,088
======== ========
EARNINGS PER COMMON SHARE:
Net income per common and common
equivalent shares $ 0.17 $ 0.23
======== ========
</TABLE>
<PAGE> 1
EXHIBIT 12.1
NEWMONT MINING CORPORATION AND SUBSIDIARIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(Amounts in thousands except ratios)
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended
March 31, 1995
------------------
<S> <C>
Earnings:
Income before income taxes $ 17,466
Adjustments:
Net interest expense (1) 8,716
Amortization of capitalized interest 585
Portion of rental expense representative
of interest 303
Minority interest of majority-owned
subsidiaries that have fixed charges 1,405
Undistributed income of less than 50%
owned entities 2,276
--------
$ 30,751
========
Fixed Charges:
Net interest expense (1) $ 8,716
Capitalized interest 2,810
Portion of rental expense representative
of interest 303
--------
$ 11,829
========
Ratio of earnings to fixed charges 2.6
========
</TABLE>
(1) Includes interest expense of majority-owned subsidiaries and amortization
of debt issuance costs.
<PAGE> 1
EXHIBIT 12.2
NEWMONT MINING CORPORATION AND SUBSIDIARIES
COMPUTATION OF RATIO OF EARNINGS TO COMBINED FIXED CHARGES
AND PREFERRED STOCK DIVIDENDS
(Amounts in thousands except ratios)
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended
March 31, 1995
------------------
<S> <C>
Earnings:
Income before income taxes $ 17,466
Adjustments:
Net interest expense (1) 8,716
Amortization of capitalized interest 585
Portion of rental expense representative
of interest 303
Minority interest of majority-owned
subsidiaries that have fixed charges 1,405
Undistributed income of less than 50%
owned entities 2,276
--------
$ 30,751
========
Fixed Charges:
Net interest expense (1) $ 8,716
Preferred stock dividends (2) 4,389
Capitalized interest 2,810
Portion of rental expense representative
of interest 303
--------
$ 16,218
========
Ratio of earnings to combined fixed charges
and preferred stock dividends 1.9
========
</TABLE>
(1) Includes interest expense of majority-owned subsidiaries and amortization
of debt issuance costs.
(2) Increased to represent pretax earnings which would be required to cover
such dividend requirements.
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
ART. 5 FOR 1ST QUARTER 10Q
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1994
<PERIOD-END> MAR-31-1995
<CASH> 110,518
<SECURITIES> 13,438
<RECEIVABLES> 24,167
<ALLOWANCES> 0
<INVENTORY> 133,665
<CURRENT-ASSETS> 305,478
<PP&E> 1,763,466
<DEPRECIATION> 621,162
<TOTAL-ASSETS> 1,635,804
<CURRENT-LIABILITIES> 143,708
<BONDS> 587,834
<COMMON> 440,753
0
14,375
<OTHER-SE> 220,036
<TOTAL-LIABILITY-AND-EQUITY> 1,635,804
<SALES> 134,459
<TOTAL-REVENUES> 151,741
<CGS> 83,184
<TOTAL-COSTS> 107,904
<OTHER-EXPENSES> 22,395
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 8,716
<INCOME-PRETAX> 18,871
<INCOME-TAX> 1,873
<INCOME-CONTINUING> 15,593
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 15,593
<EPS-PRIMARY> 0.14
<EPS-DILUTED> 0.17
</TABLE>
