Newmont (NEM) Q4 2010 earnings summary

Executive summary

• FY2010 delivered record Sales of $9.54B, up 24% YoY, and Net income attributable to stockholders of $2.277B, or $4.63 basic EPS; higher realized metal prices drove growth.

• Operating cash flow from continuing operations reached a record $3.18B; attributable gold reserves rose 1.7M oz to 93.5M oz.

• Gold production was 6.451M oz consolidated and 5.392M oz attributable; copper production was 600M lb consolidated and 327M lb attributable.

Financial highlights

• Sales rose 24% to $9.54B; income from continuing operations was $3.144B, Net income was $3.116B, and attributable Net income was $2.277B.

• Basic EPS from continuing operations was $4.69 and total basic EPS was $4.63; Adjusted net income was $1.893B, or $3.85 per basic share.

• Average realized gold price increased 25% to $1,222/oz; copper rose 32% to $3.43/lb, including $120M in favorable provisional-pricing mark-to-market adjustments.

• Consolidated gold Costs applicable to sales increased 18% to $485/oz; copper costs increased 25% to $0.80/lb.

Outlook and guidance

• 2011 attributable gold production expected at 5.1–5.3M oz; consolidated gold Costs applicable to sales projected at $560–$590/oz.

• 2011 attributable copper production expected at 190–220M lb, with consolidated Costs applicable to sales of $1.25–$1.50/lb.

• 2011 capital expenditures forecast at $2.7–$3.0B; exploration expense $335–$345M, advanced projects and R&D $405–$415M, and G&A $190–$200M.

• 2011 effective tax rate expected at 28%–32%; interest expense, net, projected at $235–$245M and amortization at $1.025–$1.035B.

• Fronteer acquisition expected to close in Q2 2011 for approximately C$2.3B; Akyem and Conga construction decisions were expected in H1 2011.