Newmont (NEM) Q4 2009 earnings summary

Executive summary

• 2009 revenue rose 26% YoY to $7.705B; net income attributable to shareholders reached a record $1.297B, or $2.66 per share.

• Record cash flow from continuing operations of $2.914B, up from $1.397B in 2008; Boddington achieved commercial production in November.

Financial highlights

• Revenue was $7.705B vs. $6.124B in 2008; net income was $2.093B vs. $1.160B, while attributable net income was $1.297B vs. $831M.

• Adjusted net income was $1.359B, or $2.79/share, vs. $792M, or $1.74/share, in 2008; reported attributable EPS was $2.66 vs. $1.83.

• Gold net sales increased $1.014B YoY on a $103/oz higher realized price and 384,000 additional ounces sold; copper net sales were $1.319B vs. $752M.

• Net income included $90M pre-tax of Boddington acquisition costs and contingent-consideration revaluation, $135M of advanced projects and R&D, and a $43M pre-tax loss on the Kori Kollo sale.

Outlook and guidance

• 2010 consolidated gold production forecast at 6.3–6.8M oz, with Costs applicable to sales of $450–$480/oz; Boddington ramp-up partly offsets lower Nevada and Yanacocha output.

• 2010 consolidated copper production forecast at 540–600M lb, with Costs applicable to sales of $0.85–$0.95/lb.

• 2010 capital expenditures forecast at $1.4–$1.6B; ~60% for sustaining investment and ~40% for project development, including Akyem and Conga.

• 2010 exploration spending forecast at $190–$220M and advanced projects, research and development at $185–$210M.

• 2010 effective tax rate forecast at 28%–32%; interest expense, net of capitalized interest, forecast at $270–$290M.