NEWMONT Corp /DE/ - Quarter Report: 2016 June (Form 10-Q)

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D. C. 20549

Form 10-Q

(Mark One)

☒QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Quarterly Period Ended June 30, 2016

☐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: 001-31240

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NEWMONT MINING CORPORATION

(Exact name of registrant as specified in its charter)


Delaware		84-1611629
(State or Other Jurisdiction of Incorporation or Organization)		(I.R.S. Employer Identification No.)
6363 South Fiddler’s Green Circle
Greenwood Village, Colorado		80111
(Address of Principal Executive Offices)		(Zip Code)

Registrant’s telephone number, including area code (303) 863-7414

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. ☒ Yes ☐ No

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). ☒ Yes ☐ No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12-b2 of the Exchange Act.


Large accelerated filer	☒		Accelerated filer	☐
Non-accelerated filer	☐	(Do not check if a smaller reporting company.)	Smaller reporting company	☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12-b2 of the Exchange Act). ☐ Yes ☒ No

There were 530,594,563 shares of common stock outstanding on July 13, 2016.

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TABLE OF CONTENTS


		Page
	PART I – FINANCIAL INFORMATION
ITEM 1.	FINANCIAL STATEMENTS	1
	Condensed Consolidated Statements of Income	1
	Condensed Consolidated Statements of Comprehensive Income	2
	Condensed Consolidated Statements of Cash Flows	3
	Condensed Consolidated Balance Sheets	4
	Notes to Condensed Consolidated Financial Statements	5
ITEM 2.	MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS	48
	Overview	48
	Selected Financial and Operating Results	51
	Consolidated Financial Results	51
	Results of Consolidated Operations	57
	Liquidity and Capital Resources	65
	Environmental	68
	Accounting Developments	69
	Non-GAAP Financial Measures	70
	Safe Harbor Statement	78
ITEM 3.	QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	80
ITEM 4.	CONTROLS AND PROCEDURES	82
	PART II – OTHER INFORMATION
ITEM 1.	LEGAL PROCEEDINGS	84
ITEM 1A.	RISK FACTORS	84
ITEM 2.	UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS	84
ITEM 3.	DEFAULTS UPON SENIOR SECURITIES	84
ITEM 4.	MINE SAFETY DISCLOSURES	84
ITEM 5.	OTHER INFORMATION	84
ITEM 6.	EXHIBITS	85
SIGNATURES		86
EXHIBIT INDEX		87

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PART I—FINANCIAL INFORMATION

ITEM 1.FINANCIAL STATEMENTS.

NEWMONT MINING CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(unaudited, in millions except per share)


	Three Months Ended June 30,				Six Months Ended June 30,
	2016		2015		2016		2015
Sales	$	2,038	$	1,908	$	4,070	$	3,880

Costs and expenses
Costs applicable to sales (1)		1,059		1,027		2,140		2,054
Depreciation and amortization		314		276		636		565
Reclamation and remediation (Note 5)		25		26		50		49
Exploration		38		48		68		81
Advanced projects, research and development		44		33		72		61
General and administrative		64		68		121		126
Other expense, net		19		27		37		44
		1,563		1,505		3,124		2,980
Other income (expense)
Other income, net		—		(23)		98		(12)
Interest expense, net		(71)		(82)		(150)		(167)
		(71)		(105)		(52)		(179)
Income (loss) before income and mining tax and other items		404		298		894		721
Income and mining tax benefit (expense) (Note 6)		(310)		(152)		(634)		(345)
Equity income (loss) of affiliates		(5)		(7)		(10)		(16)
Income (loss) from continuing operations		89		139		250		360
Income (loss) from discontinued operations		(27)		9		(53)		17
Net income (loss)		62		148		197		377
Net loss (income) attributable to noncontrolling interests (Note 7)		(39)		(76)		(122)		(122)
Net income (loss) attributable to Newmont stockholders	$	23	$	72	$	75	$	255

Net income (loss) attributable to Newmont stockholders:
Continuing operations	$	50	$	63	$	128	$	238
Discontinued operations		(27)		9		(53)		17
	$	23	$	72	$	75	$	255
Income (loss) per common share (Note 8)
Basic:
Continuing operations	$	0.09	$	0.13	$	0.24	$	0.48
Discontinued operations		(0.05)		0.01		(0.10)		0.03
	$	0.04	$	0.14	$	0.14	$	0.51
Diluted:
Continuing operations	$	0.09	$	0.13	$	0.24	$	0.48
Discontinued operations		(0.05)		0.01		(0.10)		0.03
	$	0.04	$	0.14	$	0.14	$	0.51

Cash dividends declared per common share	$	0.025	$	0.025	$	0.050	$	0.050

⁽¹⁾

Excludes Depreciation and amortization and Reclamation and remediation.

The accompanying notes are an integral part of the condensed consolidated financial statements.

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NEWMONT MINING CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(unaudited, in millions)


	Three Months Ended June 30,				Six Months Ended June 30,
	2016		2015		2016		2015
Net income (loss)	$	62	$	148	$	197	$	377
Other comprehensive income (loss):
Unrealized gain (loss) on marketable securities, net of $nil, $nil, $nil and $nil tax benefit (expense), respectively		21		(8)		(56)		(7)
Foreign currency translation adjustments		4		5		7		(5)
Change in pension and other post-retirement benefits, net of $nil, $(20), $(2) and $(22) tax benefit (expense), respectively		4		39		7		44
Change in fair value of cash flow hedge instruments, net of $(7), $(7), $(15) and $(3) tax benefit (expense), respectively		16		16		35		6
Other comprehensive income (loss)		45		52		(7)		38
Comprehensive income (loss)	$	107	$	200	$	190	$	415

Comprehensive income (loss) attributable to:
Newmont stockholders	$	68	$	124	$	68	$	293
Noncontrolling interests		39		76		122		122
	$	107	$	200	$	190	$	415

The accompanying notes are an integral part of the condensed consolidated financial statements.

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NEWMONT MINING CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited, in millions)


	Six Months Ended June 30,
	2016		2015
Operating activities:
Net income (loss)	$	197	$	377
Adjustments:
Depreciation and amortization		636		565
Stock-based compensation		37		40
Reclamation and remediation		48		47
Loss (income) from discontinued operations		53		(17)
Impairment of investments		—		73
Deferred income taxes		441		130
Gain on asset and investment sales, net		(104)		(43)
Other operating adjustments and impairments		181		165
Net change in operating assets and liabilities (Note 20)		(185)		(268)
Net cash provided by continuing operating activities		1,304		1,069
Net cash used in discontinued operations		(5)		(6)
Net cash provided by operating activities		1,299		1,063
Investing activities:
Additions to property, plant and mine development		(591)		(606)
Proceeds from sales of investments		184		29
Proceeds from sales of other assets		8		44
Other		(6)		(6)
Net cash used in investing activities		(405)		(539)
Financing activities:
Repayment of debt		(641)		(281)
Proceeds from stock issuance, net		—		675
Proceeds from sale of noncontrolling interests		—		37
Funding from noncontrolling interests		50		62
Dividends paid to noncontrolling interests		(146)		(3)
Dividends paid to common stockholders		(27)		(23)
Increase in restricted cash, net		(13)		(59)
Other		(1)		(8)
Net cash (used in) provided by financing activities		(778)		400
Effect of exchange rate changes on cash		4		(19)
Net change in cash and cash equivalents		120		905
Cash and cash equivalents at beginning of period		2,782		2,403
Cash and cash equivalents at end of period	$	2,902	$	3,308

The accompanying notes are an integral part of the condensed consolidated financial statements.

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NEWMONT MINING CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(unaudited, in millions)


	At June 30,		At December 31,
	2016		2015
ASSETS
Cash and cash equivalents	$	2,902	$	2,782
Trade receivables		315		260
Other accounts receivables		194		185
Investments (Note 13)		46		19
Inventories (Note 14)		728		710
Stockpiles and ore on leach pads (Note 15)		953		896
Other current assets		156		131
Current assets		5,294		4,983
Property, plant and mine development, net		14,234		14,303
Investments (Note 13)		237		402
Stockpiles and ore on leach pads (Note 15)		2,956		3,000
Deferred income tax assets		1,264		1,718
Other non-current assets		718		730
Total assets	$	24,703	$	25,136

LIABILITIES
Debt (Note 16)	$	196	$	149
Accounts payable		348		396
Employee-related benefits		211		293
Income and mining taxes payable		126		38
Other current liabilities (Note 17)		479		540
Current liabilities		1,360		1,416
Debt (Note 16)		5,375		6,041
Reclamation and remediation liabilities (Note 5)		1,835		1,800
Deferred income tax liabilities		926		840
Employee-related benefits		463		437
Other non-current liabilities (Note 17)		361		310
Total liabilities		10,320		10,844


EQUITY
Common stock		849		847
Additional paid-in capital		9,457		9,427
Accumulated other comprehensive income (loss) (Note 19)		(341)		(334)
Retained earnings		1,458		1,410
Newmont stockholders' equity		11,423		11,350
Noncontrolling interests		2,960		2,942
Total equity (Note 18)		14,383		14,292
Total liabilities and equity	$	24,703	$	25,136

The accompanying notes are an integral part of the condensed consolidated financial statements.

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NEWMONT MINING CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

(dollars in millions, except per share, per ounce and per pound amounts)

NOTE 1 BASIS OF PRESENTATION

The interim Condensed Consolidated Financial Statements (“interim statements”) of Newmont Mining Corporation and its subsidiaries (collectively, “Newmont” or the “Company”) are unaudited. In the opinion of management, all adjustments (including normal recurring adjustments) and disclosures necessary for a fair presentation of these interim statements have been included. The results reported in these interim statements are not necessarily indicative of the results that may be reported for the entire year. These interim statements should be read in conjunction with Newmont’s Consolidated Financial Statements for the year ended December 31, 2015 filed on February 17, 2016 on Form 10-K. The year-end balance sheet data was derived from the audited financial statements and, in accordance with the instructions to Form 10-Q, certain information and footnote disclosures required by United States (U.S.) generally accepted accounting principles (“GAAP”) have been condensed or omitted. References to “A$” refers to Australian currency and “C$” refers to Canadian currency.

On June 30, 2016, Nusa Tenggara Partnership B.V. (owned 56.25% by the Company and 43.75% by Nusa Tenggara Mining Corporation, majority owned by Sumitomo Corporation) entered into a binding share sale and purchase agreement with PT Amman Mineral Internasional (“PTAMI”) to sell its 56% ownership interest in PT Newmont Nusa Tenggara (“PTNNT”), which operates the Batu Hijau copper and gold mine (“Batu Hijau”) in Indonesia. In addition, NVL (USA) Limited (“NVL”), a wholly owned subsidiary of the Company, (i) entered into a binding agreement to sell a loan made to PT Pukuafu Indah (“PTPI”), secured by PTPI’s 17.8% interest in PTNNT, to PTAMI, and (ii) consented to PT Indonesia Masabaga Investama (“PTIMI”) selling its 2.2% interest in PTNNT to PTAMI with sale proceeds applied toward repayment of an NVL loan to PTIMI. Through these transactions, Newmont will effectively sell its 48.5% economic interest in PTNNT to PTAMI and will have no remaining interest.

The sales proceeds to be received by the Company for its 48.5% economic interest in PTNNT includes $920 in cash to be received at closing, as well as contingent payments totaling up to $403. The contingent payments of up to $403 include (i) a Metal Price Upside deferred payment of up to $133, (ii) an Elang Development deferred payment totaling $118 and (iii) a Contingent Payment of up to $152. The contingent payment amounts are determined based on certain metal price, shipment or project development criteria, as described below.

The Metal Price Upside contingent payment of up to $133 is payable for any quarter in which the London Metal Exchange (“LME”) quarterly average copper price exceeds $3.75 per pound. It is calculated as 30% of the product of (i) the difference between the LME quarterly average copper price and $3.75 and (ii) 96.5% of the total pounds of copper contained in shipments of mineral products mined or produced from Batu Hijau that arrived in buyers’ or customers’ designated port for delivery during the previous quarter. The Elang Development contingent payment totaling $118 is payable no later than the first anniversary of the first shipment of any form of saleable copper, gold or silver product produced from the Elang development area. The Contingent Payment of up to $152 is payable (i) as a payment of $76 if in any year after 2022 in which there is production from Phase 7 of the Batu Hijau mine and the LME annual average copper price is $2.75 or more per pound and (ii) if the full Contingent Payment amount has not already been paid, a payment of $76 in any year after both the second anniversary of the first shipment of concentrate produced from the Elang development area and December 31, 2023 in which the LME annual average copper price in respect to such year is $3.25 or more per pound.

The sale of the Company’s economic interest in PTNNT is subject to customary representations, warranties and covenants by the parties, and is subject to various closing conditions, including (i) obtaining approval of the Indonesian Ministry of Energy and Mineral Resources and the Indonesian Investment Coordinating Board in respect of the transfer of shares to PTAMI, and other required governmental consents and approvals; (ii) PTNNT holding a valid export license at closing; (iii) concurrent closing of PT Multi Daerah Bersaing’s (“PTMDB”) sale of its approximately 24% stake in PTNNT to PTAMI; (iv) obtaining approval of the shareholders of PTNNT for the transfer of shares in PTNNT to PTAMI and the appointment of directors nominated by PTAMI; (v) no material adverse events having occurred,

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NEWMONT MINING CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

(dollars in millions, except per share, per ounce and per pound amounts)

including (a) an event that causes significant interruption of mining or milling operations of PTNNT for three months or longer, (b) laws or regulations that prevent PTNNT from exporting its production outside of Indonesia for three months or longer, (c) the revocation or termination of PTNNT’s mineral rights and mining concessions with the Republic of Indonesia, and (d) any revocation, termination or suspension of PTNNT’s export license; and (vi) the satisfaction or waiver of the conditions precedent in other transaction and finance-related agreements, including the resolution of certain tax matters pertaining to PTNNT shareholder PTPI.

The completion of the sale is subject to the closing conditions noted above, some of which are outside the control of the Company. Assuming the resolution of the closing conditions, the transaction is anticipated to close in the third quarter of 2016.

Based on the agreement to sell the economic interest in PTNNT, the Company evaluated the criteria under ASC 360 for classifying an asset as held for sale and concluded that as of June 30, 2016, PTNNT does not meet the criteria to be treated as an asset held for sale and will not be presented as a discontinued operation.

The Batu Hijau mine, which constitutes 15% of the Company’s total assets at June 30, 2016, is included in the Asia Pacific segment in the condensed consolidated financial statements. Refer to Note 7 for details on Batu Hijau’s financial position. The Company expects to record a loss on the sale of its economic interest in PTNNT of approximately $500 upon closing of the transaction. The expected loss does not currently include the $403 of contingent consideration described above due to the uncertainty in valuing the amounts.

As part of the Company’s asset impairment evaluation procedures at June 30, 2016, and in accordance with ASC 360, the Company has determined that the agreement to sell the economic interest in PTNNT was a triggering event that required the Company to evaluate the recoverability of the long-lived assets of PTNNT. Based on the evaluation of the probability weighted cash flows of either selling the economic interest in PTNNT or continuing to operate PTNNT as an asset held for use, the Company determined that no impairment was required at June 30, 2016.

The Company has reclassified certain prior period amounts to conform to the 2016 presentation including the following items:

The Company retrospectively adopted Accounting Standards Update (“ASU”) 2015-03, which requires debt issuance costs to be presented as a deduction from the corresponding debt liability. Refer to Note 2 for further details.

The Company reclassified regional administrative and community development costs of $17 and $8 from Other expense, net to General and administrative and Costs applicable to sales, respectively, for the three months ended June 30, 2015, and $31 and $16, respectively, for the six months ended June 30, 2015.

NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Risks and Uncertainties

As a global mining company, the Company’s revenue, profitability and future rate of growth are substantially dependent on prevailing prices for gold, copper and, to a lesser extent, silver. Historically, the commodity markets have been very volatile and there can be no assurance that commodity prices will not be subject to wide fluctuations in the future. A substantial or extended decline in commodity prices could have a material adverse effect on the Company’s financial position, results of operations, cash flows, access to capital and the quantities of reserves that the Company can economically produce. The carrying value of the Company’s Property, plant and mine development, net; Inventories; Stockpiles and ore on leach pads and Deferred income tax assets are sensitive to the outlook for commodity prices. A

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NEWMONT MINING CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

(dollars in millions, except per share, per ounce and per pound amounts)

decline in the Company’s long-term price outlook from current levels could result in material impairment charges related to these assets.

On June 30, 2016, the Company, through its subsidiaries, entered into agreements to sell its 48.5% economic interest in PTNNT, which operates the Batu Hijau copper and gold mine in Indonesia. The closing of the sale is subject to various closing conditions, some of which are outside the control of the Company, and if not satisfied could result in the sale of PTNNT not being completed. See Note 1 above for a detailed description of the closing conditions specified in the share sale and purchase agreement.

In September 2014, PTNNT and the Government of Indonesia signed a Memorandum of Understanding (“MoU”) that resulted in the government agreeing to issue permits to allow PTNNT to export and sell copper concentrates from the Batu Hijau mine. The government then issued several six-month export permits since then, with the most recent permit renewal expected to expire in November 2016. Additionally, negotiations between PTNNT and the Government of Indonesia to amend the Contract of Work (the investment agreement entered into by PTNNT and the Indonesian government in 1986, which includes the right to export copper concentrates and a prohibition against new taxes, duties, and levies) remained on-going at the time that the Company entered into the agreement to sell its interest in PTNNT. In the event that the sale of the Company’s interest does not close prior to November 2016 or does not close at all, no assurances can be made with respect to the outcome of the Contract of Work negotiations and the renewal of the export permit. The failure to receive a timely renewal may negatively impact future operations and financial results at Batu Hijau. As a result of the on-going Contract of Work renegotiations at Batu Hijau, the need for asset impairments, inventory write-downs, tax valuation allowances and other applicable accounting charges will continue to be evaluated. At this time, the Company expects operations to continue into the future until the previously announced sale closes. The total assets at Batu Hijau as of June 30, 2016 and December 31, 2015 were $3,746 and $3,483, respectively.

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the accounting for and recognition and disclosure of assets, liabilities, equity, revenues and expenses. The Company must make these estimates and assumptions because certain information used is dependent on future events, cannot be calculated with a high degree of precision from data available or simply cannot be readily calculated based on generally accepted methodologies. Actual results could differ from these estimates.

Recently Adopted Accounting Pronouncements

Employee benefit plan accounting

In July 2015, the Financial Accounting Standards Board issued ASU No. 2015-12 related to defined benefit pension plans, defined contribution pension plans and health and welfare benefit plans. This update designates contract value as the only required measure for fully benefit-responsive investment contracts, simplifies and makes more effective the investment disclosure requirements for employee benefit plans and provides a simplified method for determining the measurement date for employee benefit plans. The update is effective in fiscal years, including interim periods, beginning after December 15, 2015. Adoption of this guidance, effective January 1, 2016, had no impact on the Consolidated Financial Statements or disclosures.

Fair value measurement

In May 2015, ASU No. 2015-07 was issued related to investments for which fair value is measured, or is eligible to be measured, using the net asset value per share practical expedient. This update removes the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the net asset value per share practical expedient. The amendment also removes certain disclosure requirements for these investments. This update will impact the annual disclosure related to pension plan assets measured at fair value. This update is effective in

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NEWMONT MINING CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

(dollars in millions, except per share, per ounce and per pound amounts)

fiscal years, including interim periods, beginning after December 15, 2015. Adoption of this guidance, effective January 1, 2016, had no impact on the Consolidated Financial Statements.

Debt issuance costs

In April 2015, ASU No. 2015-03 was issued related to debt issuance costs. This update simplifies the presentation of debt issuance costs by requiring debt issuance costs to be presented as a deduction from the corresponding debt liability. The update is effective in fiscal years, including interim periods, beginning after December 15, 2015. The Company retrospectively adopted this guidance as of March 31, 2016. The Company reclassified $46 of debt issuance costs from Other non-current assets to Debt as of December 31, 2015. The December 31, 2015, balance sheet was adjusted as a result of the adoption of ASU 2015-03 as follows:


	At December 31, 2015
	As Reported		As Adjusted
Other non-current assets	$	776	$	730
Debt (non-current)	$	6,087	$	6,041

ASU No. 2015-03 does not specifically address the accounting for deferred financing costs related to line-of-credit arrangements. In August 2015, ASU No. 2015-15 was issued allowing for debt issuance costs associated with line-of-credit arrangements to continue to be presented as assets. The Company will treat all debt issuance costs as a reduction to the carrying value of debt.

Consolidations

In February 2015, ASU No. 2015-02 was issued related to consolidations. This update makes some targeted changes to current consolidation guidance and impacts both the voting and the variable interest consolidation models. In particular, the update changes how companies determine whether limited partnerships or similar entities are variable interest entities. The update is effective in fiscal years, including interim periods, beginning after December 15, 2015. The Company currently consolidates certain variable interest entities. Adoption of this guidance, effective January 1, 2016, had no impact on the Consolidated Financial Statements or disclosures.

Recently Issued Accounting Pronouncements

Stock-based compensation

In March 2016, ASU No. 2016-09 was issued related to stock-based compensation. The new guidance simplifies the accounting for stock-based compensation transactions, including income tax consequences, classification of awards as either equity or liabilities and classification on the statement of cash flows. This update is effective in fiscal years, including interim periods, beginning after December 15, 2016, and early adoption is permitted. The Company is currently evaluating this guidance and expects an insignificant impact on the Consolidated Financial Statements and disclosures.

Leases

In February 2016, ASU No. 2016-02 was issued related to leases. The new guidance modifies the classification criteria and requires lessees to recognize the assets and liabilities arising from most leases on the balance sheet. This update is effective in fiscal years, including interim periods, beginning after December 15, 2018, and early adoption is permitted. The Company is currently evaluating this guidance and the impact it will have on the Consolidated Financial Statements and disclosures.

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NEWMONT MINING CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

(dollars in millions, except per share, per ounce and per pound amounts)

Investments

In January 2016, ASU No. 2016-01 was issued related to financial instruments. The new guidance requires entities to measure equity investments that do not result in consolidation and are not accounted for under the equity method at fair value and recognize any changes in fair value in net income. This new guidance also updates certain disclosure requirements for these investments. This update is effective in fiscal years, including interim periods, beginning after December 15, 2017, and early adoption is not permitted. The Company is currently evaluating this guidance and the impact it will have on the Consolidated Financial Statements and disclosures.

Inventory

In July 2015, ASU No. 2015-11 was issued related to inventory, simplifying the subsequent measurement of inventories by replacing the lower of cost or market test with a lower of cost and net realizable value test. The update is effective in fiscal years, including interim periods, beginning after December 15, 2016, and early adoption is permitted. The Company does not expect the updated guidance to have an impact on the Consolidated Financial Statements or disclosures.

Revenue recognition

In May 2014, ASU No. 2014-09 was issued related to revenue from contracts with customers. This ASU was further amended in August 2015, March 2016, April 2016 and May 2016 by ASU No. 2015-14, No. 2016-08, No. 2016-10 and No. 2016-12, respectively. The new standard provides a five-step approach to be applied to all contracts with customers and also requires expanded disclosures about revenue recognition. In August 2015, the effective date was deferred to reporting periods, including interim periods, beginning after December 15, 2017, and will be applied retrospectively. Early adoption is not permitted. The Company is currently evaluating this guidance and the impact it will have on the Consolidated Financial Statements and disclosures.

NOTE 3 BUSINESS ACQUISITION

On June 8, 2015, the Company announced an agreement with AngloGold Ashanti Limited to acquire 100% ownership in the Cripple Creek & Victor (“CC&V”) gold mining business in Colorado. CC&V is a surface mine with heap leach operations that provides ore to a crusher and a leach facility. During 2015, the Company received $675 in net proceeds from a common stock issuance. Newmont used the proceeds, supplemented with cash from the Company’s balance sheet, to fund the acquisition. On August 3, 2015, the Company completed the acquisition of CC&V for $821, plus a 2.5% net smelter return royalty on future gold production from underground ore which had no fair value at the acquisition date. In connection with the acquisition, the Company incurred acquisition costs of $3, for the three and six months ended June 30, 2016, which were recorded in Other expense, net. The acquisition is not material to the Company's results of operations, individually or in the aggregate; as a result, no pro forma financial information is provided.

During the second quarter of 2016, the final valuation of acquired assets and liabilities assumed was completed. There were no adjustments to the purchase price allocation since December 31, 2015. For further discussion of the CC&V acquisition, refer to Note 3 to the Consolidated Financial Statements for the year ended December 31, 2015 filed February 17, 2016 on Form 10-K.

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NEWMONT MINING CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

(dollars in millions, except per share, per ounce and per pound amounts)

NOTE 4 SEGMENT INFORMATION

The Company has organized its operations into four geographic regions. The geographic regions include North America, South America, Asia Pacific and Africa and represent the Company’s operating segments. The results of these operating segments are reviewed by the Company’s chief operating decision maker to make decisions about resources to be allocated to the segments and assess their performance. As a result, these operating segments represent the Company’s reportable segments. Notwithstanding this structure, the Company internally reports information on a mine-by-mine basis for each mining operation and have chosen to disclose this information on the following tables. Income (loss) before income and mining tax and other items from reportable segments does not reflect general corporate expenses, interest (except project-specific interest) or income and mining taxes (except for equity investments). Intercompany revenue and expense amounts have been eliminated within each segment in order to report on the basis that management uses internally for evaluating segment performance. Newmont’s business activities that are not considered operating segments are included in Corporate and Other although they are not required to be included in this footnote; they are provided for reconciliation purposes. In the first quarter of 2016, Merian was moved from Corporate and Other to the South America reportable segment as a result of the mine being included in the operating results and resource allocation of the South America segment. In the second quarter of 2016, Long Canyon was moved from Other North America to its own line item to reflect how the project is being reported internally. Segment results for prior periods have been retrospectively revised to reflect these changes. The financial information relating to the Company’s segments is as follows:

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NEWMONT MINING CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

(dollars in millions, except per share, per ounce and per pound amounts)


							Advanced		Income (Loss)
			Costs		Depreciation		Projects, Research		before Income
			Applicable		and		and Development		and Mining Tax		Capital
	Sales		to Sales		Amortization		and Exploration		and Other Items		Expenditures(1)
Three Months Ended June 30, 2016
Carlin	$	256	$	184	$	43	$	4	$	22	$	43
Phoenix:
Gold		62		39		12
Copper		22		22		7
Total Phoenix		84		61		19		1		3		3
Twin Creeks		144		58		13		2		70		14
Long Canyon		—		—		—		7		(7)		37
CC&V (2)		144		58		28		1		55		15
Other North America		—		—		—		5		(6)		2
North America		628		361		103		20		137		114

Yanacocha		194		120		59		11		(19)		24
Merian		—		—		—		11		(10)		60
Other South America		—		—		4		10		(14)		—
South America		194		120		63		32		(43)		84

Boddington:
Gold		250		141		29
Copper		35		33		6
Total Boddington		285		174		35		—		75		12
Tanami		179		64		23		3		89		33
Kalgoorlie		122		67		4		2		49		5
Batu Hijau:
Gold		191		65		14
Copper		178		92		19
Total Batu Hijau (3)		369		157		33		—		163		10
Other Asia Pacific		—		—		2		2		(10)		—
Asia Pacific		955		462		97		7		366		60

Ahafo		115		60		17		7		30		22
Akyem		146		56		32		3		55		3
Other Africa		—		—		—		—		(2)		—
Africa		261		116		49		10		83		25

Corporate and Other		—		—		2		13		(139)		2
Consolidated	$	2,038	$	1,059	$	314	$	82	$	404	$	285

⁽¹⁾

Includes a decrease in accrued capital expenditures of $9; consolidated capital expenditures on a cash basis were $294.

⁽²⁾

The Company acquired the CC&V gold mining business on August 3, 2015.

⁽³⁾

On June 30, 2016, the Company announced the anticipated sale of Batu Hijau. Refer to Note 1 for additional information.

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NEWMONT MINING CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

(dollars in millions, except per share, per ounce and per pound amounts)


							Advanced		Income (Loss)
			Costs		Depreciation		Projects, Research		before Income
			Applicable		and		and Development		and Mining Tax		Capital
	Sales		to Sales		Amortization		and Exploration		and Other Items		Expenditures(1)
Three Months Ended June 30, 2015
Carlin	$	243	$	187	$	46	$	4	$	3	$	58
Phoenix:
Gold		50		32		8
Copper		24		17		3
Total Phoenix		74		49		11		1		9		8
Twin Creeks		150		65		12		3		68		12
Long Canyon		—		—		—		3		(3)		19
Other North America		—		—		—		4		(3)		1
North America		467		301		69		15		74		98

Yanacocha		242		130		66		8		20		19
Merian		—		—		—		3		(4)		78
Other South America		—		—		2		12		(16)		—
South America		242		130		68		23		—		97

Boddington:
Gold		202		122		24
Copper		41		29		5
Total Boddington		243		151		29		—		51		18
Tanami		138		59		22		2		53		30
Waihi (2)		39		18		3		1		14		4
Kalgoorlie		100		78		6		1		13		4
Batu Hijau:
Gold		178		73		14
Copper		269		123		21
Total Batu Hijau (3)		447		196		35		4		202		20
Other Asia Pacific		—		—		4		1		(12)		2
Asia Pacific		967		502		99		9		321		78

Ahafo		87		43		13		5		22		24
Akyem		145		51		24		4		63		8
Other Africa		—		—		—		1		—		—
Africa		232		94		37		10		85		32

Corporate and Other		—		—		3		24		(182)		24
Consolidated	$	1,908	$	1,027	$	276	$	81	$	298	$	329

⁽¹⁾

Includes an increase in accrued capital expenditures of $7; consolidated capital expenditures on a cash basis were $322.

⁽²⁾

On October 29, 2015, the Company sold the Waihi mine.

⁽³⁾

On June 30, 2016, the Company announced the anticipated sale of Batu Hijau. Refer to Note 1 for additional information.

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NEWMONT MINING CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

(dollars in millions, except per share, per ounce and per pound amounts)


							Advanced		Income (Loss)
			Costs		Depreciation		Projects, Research		before Income
			Applicable		and		and Development		and Mining Tax		Capital
	Sales		to Sales		Amortization		and Exploration		and Other Items		Expenditures(1)
Six Months Ended June 30, 2016
Carlin	$	502	$	373	$	92	$	7	$	24	$	79
Phoenix:
Gold		126		88		27
Copper		43		44		12
Total Phoenix		169		132		39		1		(8)		7
Twin Creeks		303		118		26		4		153		20
Long Canyon		—		—		—		13		(13)		73
CC&V (2)		209		91		46		4		65		36
Other North America		—		—		—		6		(9)		2
North America		1,183		714		203		35		212		217

Yanacocha		405		248		128		20		(30)		38
Merian		—		—		1		14		(14)		142
Other South America		—		—		7		16		(25)		—
South America		405		248		136		50		(69)		180

Boddington:
Gold		454		252		52
Copper		65		56		11
Total Boddington		519		308		63		—		139		23
Tanami		299		123		42		6		127		57
Kalgoorlie		228		132		9		3		82		8
Batu Hijau:
Gold		474		165		34
Copper		465		222		45
Total Batu Hijau (3)		939		387		79		1		445		20
Other Asia Pacific		—		—		6		3		(15)		—
Asia Pacific		1,985		950		199		13		778		108

Ahafo		216		117		32		12		50		39
Akyem		281		111		61		4		102		10
Other Africa		—		—		—		1		(4)		—
Africa		497		228		93		17		148		49

Corporate and Other		—		—		5		25		(175)		4
Consolidated	$	4,070	$	2,140	$	636	$	140	$	894	$	558

⁽¹⁾

Includes a decrease in accrued capital expenditures of $33; consolidated capital expenditures on a cash basis were $591.

⁽²⁾

The Company acquired the CC&V gold mining business on August 3, 2015.

⁽³⁾

On June 30, 2016, the Company announced the anticipated sale of Batu Hijau. Refer to Note 1 for additional information.

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NEWMONT MINING CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

(dollars in millions, except per share, per ounce and per pound amounts)


							Advanced		Income (Loss)
			Costs		Depreciation		Projects, Research		before Income
			Applicable		and		and Development		and Mining Tax		Capital
	Sales		to Sales		Amortization		and Exploration		and Other Items		Expenditures(1)
Six Months Ended June 30, 2015
Carlin	$	519	$	365	$	91	$	7	$	50	$	115
Phoenix:
Gold		111		73		18
Copper		58		42		9
Total Phoenix		169		115		27		2		17		15
Twin Creeks		299		124		25		5		142		31
Long Canyon		—		—		—		6		(6)		24
Other North America		—		—		—		6		(1)		2
North America		987		604		143		26		202		187

Yanacocha		543		245		137		13		114		34
Merian		—		—		—		5		(6)		164
Other South America		—		—		5		22		(29)		—
South America		543		245		142		40		79		198

Boddington:
Gold		441		279		54
Copper		88		68		12
Total Boddington		529		347		66		1		109		29
Tanami		258		117		41		3		98		46
Waihi (2)		89		37		8		2		39		10
Kalgoorlie		174		138		11		1		24		11
Batu Hijau:
Gold		292		124		23
Copper		515		246		42
Total Batu Hijau (3)		807		370		65		5		337		40
Other Asia Pacific		—		—		8		2		(21)		2
Asia Pacific		1,857		1,009		199		14		586		138

Ahafo		208		99		28		11		66		45
Akyem		285		97		46		4		134		19
Other Africa		—		—		—		2		(3)		—
Africa		493		196		74		17		197		64

Corporate and Other		—		—		7		45		(343)		30
Consolidated	$	3,880	$	2,054	$	565	$	142	$	721	$	617

⁽¹⁾

Includes an increase in accrued capital expenditures of $11; consolidated capital expenditures on a cash basis were $606.

⁽²⁾

On October 29, 2015, the Company sold the Waihi mine.

⁽³⁾

On June 30, 2016, the Company announced the anticipated sale of Batu Hijau. Refer to Note 1 for additional information.

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NEWMONT MINING CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

(dollars in millions, except per share, per ounce and per pound amounts)

NOTE 5 RECLAMATION AND REMEDIATION

The Company’s mining and exploration activities are subject to various domestic and international laws and regulations governing the protection of the environment. These laws and regulations are continually changing and are generally becoming more restrictive. The Company conducts its operations to protect public health and the environment and believes its operations are in compliance with applicable laws and regulations in all material respects. The Company has made, and expects to make in the future, expenditures to comply with such laws and regulations, but cannot predict the full amount of such future expenditures. Estimated future reclamation and remediation costs are based principally on current legal and regulatory requirements.

The Company’s Reclamation and remediation expense consisted of:


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2016		2015		2016		2015
Reclamation Accretion	$	23	$	21	$	46	$	42

Remediation		1		4		2		5
Remediation Accretion		1		1		2		2
		2		5		4		7
	$	25	$	26	$	50	$	49

The following are reconciliations of Reclamation and remediation liabilities:


	2016		2015
Reclamation balance at January 1,	$	1,553	$	1,497
Additions, changes in estimates and other		2		21
Payments and other		(8)		(13)
Accretion expense		46		42
Reclamation balance at June 30,	$	1,593	$	1,547


	2016		2015
Remediation balance at January 1,	$	318	$	192
Additions, changes in estimates and other		1		1
Payments and other		(10)		(25)
Accretion expense		2		2
Remediation balance at June 30,	$	311	$	170

The current portion of reclamation liabilities included in Other current liabilities was $35 and $37 at June 30, 2016 and December 31, 2015, respectively. The current portion of remediation liabilities included in Other current liabilities was $34 at June 30, 2016 and December 31, 2015. At June 30, 2016 and December 31, 2015, $1,593 and $1,553, respectively, were accrued for reclamation obligations relating to operating properties. In addition, the Company is involved in several matters concerning environmental obligations associated with former, primarily historic, mining activities. Generally, these matters concern developing and implementing remediation plans at the various sites involved. At June 30, 2016 and December 31, 2015, $311 and $318, respectively, were accrued for such environmental remediation obligations.

There was $17 and $15 in current restricted assets for settling reclamation and remediation obligations at June 30, 2016 and December 31, 2015, respectively, related to the Batu Hijau mine in Asia Pacific. Current restricted assets are included in Other current assets. Non-current restricted assets held for purposes of settling reclamation and

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NEWMONT MINING CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

(dollars in millions, except per share, per ounce and per pound amounts)

remediation obligations were $77 and $65 at June 30, 2016 and December 31, 2015, respectively. Of the amount at June 30, 2016, $43 is related to the Midnite Mine in Washington State, $13 is related to the Ahafo and Akyem mines in Ghana, Africa, $12 is related to the Batu Hijau mine in Asia Pacific, and $9 is related to the Con mine in Yellowknife, NWT, Canada. Of the amount at December 31, 2015, $43 is related to the Midnite Mine in Washington State, $13 is related to the Ahafo and Akyem mines in Ghana, Africa and $9 is related to the Con mine in Yellowknife, NWT, Canada.

Included in Investments at June 30, 2016 and December 31, 2015, was $21 and $20, respectively, of non-current equity securities, which are legally pledged for purposes of settling reclamation and remediation obligations related to the San Jose Reservoir in Yanacocha and for various locations in Nevada.

Refer to Note 22 for further discussion of reclamation and remediation matters.

NOTE 6 INCOME AND MINING TAXES

The Company’s Income and mining tax expense (benefit) differed from the amounts computed by applying the U.S. statutory corporate income tax rate for the following reasons:


	Three Months Ended June 30,								Six Months Ended June 30,
	2016				2015				2016				2015
Income (loss) before income and mining tax and other items			$	404			$	298			$	894			$	721

Tax at statutory rate	35	%	$	141	35	%	$	104	35	%	$	313	35	%	$	252
Reconciling items:
Percentage depletion (1)	2	%		7	(6)	%		(19)	(4)	%		(36)	(5)	%		(34)
Change in valuation allowance on deferred tax assets	36	%		146	13	%		40	38	%		340	12	%		84
Mining and other taxes	1	%		6	5	%		16	3	%		29	3	%		24
Tax impact on sale of assets	—	%		—	—	%		—	(4)	%		(35)	—	%		—
Effect of foreign earnings, net of credits	1	%		6	2	%		5	2	%		17	1	%		8
Other (1)	1	%		4	2	%		6	1	%		6	2	%		11
Income and mining tax expense	76	%	$	310	51	%	$	152	71	%	$	634	48	%	$	345

⁽¹⁾

Includes the reduction to percentage depletion and the domestic production deduction from the filing of the 2015 tax return during the quarter.

A valuation allowance is provided for those deferred tax assets for which it is more likely than not that the related benefits will not be realized. In determining the amount of the valuation allowance, each quarter, the Company considers future reversals of existing taxable temporary differences, estimated future taxable income and taxable income in prior carryback year(s), as well as feasible tax planning strategies in each jurisdiction to determine if the deferred tax assets are realizable. If it is determined that the Company will not realize all or a portion of its deferred tax assets, it will place or increase a valuation allowance. Conversely, if determined that it will ultimately be able to realize all or a portion of the related benefits for which a valuation allowance has been provided, all or a portion of the related valuation allowance will be reduced. There are a number of risk factors that could impact the Company’s ability to realize the deferred tax assets.

The Company operates in numerous countries and accordingly it is subject to, and pays taxes under, the various tax regimes in the countries in which it operates. Some of these tax regimes are defined by contractual agreements with the local government, and others are defined by the general corporate income tax laws of the country. The Company has

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NEWMONT MINING CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

(dollars in millions, except per share, per ounce and per pound amounts)

historically filed, and continues to file, all required income tax returns and pay the income taxes determined to be due. The tax rules and regulations in many countries are complex and subject to interpretation. From time to time, the Company is subject to a review of its historic income tax filings and in connection with such reviews, disputes can arise with the taxing authorities over the interpretation or application of certain rules to the Company’s business conducted within the country involved.

At June 30, 2016, the Company’s gross unrecognized tax benefit, including interest and penalties, was $107 for uncertain income tax positions taken or expected to be taken on income tax returns. Of this, $77 represents the amount of unrecognized tax benefits that, if recognized, would affect the Company’s effective income tax rate.

During the second quarter of 2016, one of the Company’s Canadian subsidiaries received a tax and interest assessment from the Canadian Revenue Authority for $54 relating to a pre-acquisition transaction of Fronteer Gold Inc. and subsidiaries. The taxing authority is disputing the tax attribute that was created as part of the pre-acquisition transaction claimed on Fronteer’s tax return. The Company is procedurally required to pay at least half of the assessment by the quarter ending September 30, 2016. The Company intends to vigorously defend its position through all processes available.

As a result of the statute of limitations that expire in the next 12 months in various jurisdictions and possible settlements of audit-related issues with taxing authorities in various jurisdictions, none of which are individually significant, the Company believes that it is reasonably possible that the total amount of its net unrecognized income tax benefits will decrease by approximately $50 to $55 in the next 12 months.

NOTE 7 NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2016		2015		2016		2015
Minera Yanacocha	$	(13)	$	18	$	(24)	$	23
Batu Hijau		55		66		150		111
TMAC		—		(7)		—		(13)
Merian		(3)		—		(4)		—
Other		—		(1)		—		1
	$	39	$	76	$	122	$	122

Newmont has a 51.35% ownership interest in Minera Yanacocha S.R.L., with the remaining interests held by Compañia de Minas Buenaventura, S.A.A. (43.65%) and the International Finance Corporation (5%). Newmont consolidates Yanacocha in its Condensed Consolidated Financial Statements due to a majority voting interest.

Newmont has a 48.5% effective economic interest in PTNNT with remaining interests held by an affiliate of Sumitomo Corporation of Japan and various Indonesian entities. PTNNT operates the Batu Hijau copper and gold mine in Indonesia. Newmont consolidates PTNNT in its Condensed Consolidated Financial Statements as the primary beneficiary in the variable interest entity. For further information regarding the anticipated sale of the Company’s economic interest in PTNNT, see Note 1.

Newmont has a 29.2% ownership interest in TMAC Resources Inc. (“TMAC”), with the remaining interests held by TMAC management and various outside investors. Newmont’s retained investment in TMAC is accounted for as an equity method investment. Refer to Note 13 for additional information.

Newmont has a 75% economic interest in the development of the Merian project, with the remaining interests held by Staatsolie (a company wholly owned by the Republic of Suriname). Newmont consolidates the Merian project

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NEWMONT MINING CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

(dollars in millions, except per share, per ounce and per pound amounts)

through Surgold, a company wholly owned by Newmont. The project began construction in August 2014 and is planned to be in commercial production by the fourth quarter of 2016. According to the terms of the partnership agreement, Staatsolie will receive metal in kind for its 25% interest. Newmont consolidates the Merian project in its Condensed Consolidated Financial Statements as the primary beneficiary in the variable interest entity.

The following summarizes the assets and liabilities, inclusive of deferred tax liabilities, of our consolidated variable interest entities (including noncontrolling interests).


	At June 30, 2016				At December 31, 2015
	Batu Hijau		Merian		Batu Hijau		Merian
Current assets:
Cash and cash equivalents	$	720	$	29	$	419	$	16
Trade receivables		204		—		179		—
Other current assets (1)		419		44		362		23
		1,343		73		960		39
Non-current assets:
Property, plant and mine development, net		1,036		695		1,103		564
Stockpiles and ore on leach pads		1,007		—		1,104		—
Other non-current assets (2)		360		—		316		—
Total assets	$	3,746	$	768	$	3,483	$	603

Current liabilities:
Debt	$	188	$	—	$	140	$	—
Accounts payable		43		—		81		—
Other current liabilities (3)		151		46		71		35
		382		46		292		35
Non-current liabilities:
Debt		2		—		187		—
Reclamation and remediation liabilities		254		8		245		8
Other non-current liabilities (4)		393		—		330		—
Total liabilities	$	1,031	$	54	$	1,054	$	43

⁽¹⁾

Other current assets include other accounts receivables, inventories, stockpiles and ore on leach pads, prepaid assets, restricted assets and other current assets.

⁽²⁾

Other non-current assets include income tax receivables and other non-current assets.

⁽³⁾

Other current liabilities include employee-related benefits, income and mining taxes payables and other current liabilities.

⁽⁴⁾

Other non-current liabilities include deferred income tax liabilities and employee-related benefits.

NOTE 8 INCOME (LOSS) PER COMMON SHARE

Basic income (loss) per common share is computed by dividing income available to Newmont common stockholders by the weighted average number of common shares outstanding during the period. Diluted income (loss) per common share is computed similarly, except that weighted average common shares is increased to reflect all dilutive instruments, including employee stock awards and convertible debt instruments. The dilutive effects of Newmont’s

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NEWMONT MINING CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

(dollars in millions, except per share, per ounce and per pound amounts)

dilutive securities are calculated using the treasury stock method and only those instruments that result in a reduction in income per share are included in the calculation.


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2016		2015		2016		2015
Net income (loss) attributable to Newmont stockholders:
Continuing operations	$	50	$	63	$	128	$	238
Discontinued operations		(27)		9		(53)		17
	$	23	$	72	$	75	$	255

Weighted average common shares (millions):
Basic		531		505		530		502
Effect of employee stock-based awards		2		1		2		1
Diluted		533		506		532		503

Income (loss) per common share:
Basic:
Continuing operations	$	0.09	$	0.13	$	0.24	$	0.48
Discontinued operations		(0.05)		0.01		(0.10)		0.03
	$	0.04	$	0.14	$	0.14	$	0.51
Diluted:
Continuing operations	$	0.09	$	0.13	$	0.24	$	0.48
Discontinued operations		(0.05)		0.01		(0.10)		0.03
	$	0.04	$	0.14	$	0.14	$	0.51

Employee stock options to purchase 2 million and 2 million shares of common stock at weighted average exercise prices of $51 and $48 were outstanding at June 30, 2016 and 2015, respectively, but were not included in the computation of diluted weighted average common shares because their exercise prices exceeded the average price of the Company’s common stock for the respective periods presented.

Newmont is required to settle the principal amount of its 2017 Convertible Senior Note in cash and may elect to settle the remaining conversion premium (average share price in excess of the conversion price), if any, in cash, shares or a combination thereof. The effect of contingently convertible instruments on diluted earnings per share is calculated under the net share settlement method. The conversion price exceeded the Company’s share price for the periods presented; therefore, no additional shares were included in the computation of diluted weighted average common shares.

NOTE 9 EMPLOYEE PENSION AND OTHER BENEFIT PLANS


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2016		2015		2016		2015
Pension benefit costs, net:
Service cost	$	8	$	7	$	15	$	15
Interest cost		12		11		24		22
Expected return on plan assets		(15)		(14)		(29)		(29)
Amortization, net		6		7		12		14
	$	11	$	11	$	22	$	22

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NEWMONT MINING CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

(dollars in millions, except per share, per ounce and per pound amounts)


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2016		2015		2016		2015
Other benefit costs, net:
Service cost	$	1	$	1	$	1	$	2
Interest cost		1		1		2		3
Amortization, net		(2)		—		(3)		—
	$	—	$	2	$	—	$	5

NOTE 10 STOCK-BASED COMPENSATION


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2016		2015		2016		2015
Stock-based compensation:
Performance leveraged stock units	$	11	$	11	$	19	$	21
Restricted stock units		9		8		15		16
Strategic stock units		1		1		3		3
	$	21	$	20	$	37	$	40

NOTE 11 FAIR VALUE ACCOUNTING

Fair value accounting establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are described below:

Level 1Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities;

Level 2Quoted prices in markets that are not active, or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability; and

Level 3Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (supported by little or no market activity).

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NEWMONT MINING CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

(dollars in millions, except per share, per ounce and per pound amounts)

The following tables set forth the Company’s assets and liabilities measured at fair value on a recurring basis (at least annually) by level within the fair value hierarchy. As required by accounting guidance, assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement.


	Fair Value at June 30, 2016
	Total		Level 1		Level 2		Level 3
Assets:
Cash and cash equivalents	$	2,902	$	2,902	$	—	$	—
Restricted assets (1)		145		145		—		—
Marketable equity securities:
Extractive industries		51		51		—		—
Other		16		16		—		—
Marketable debt securities:
Asset backed commercial paper		20		—		—		20
Auction rate securities		7		—		—		7
Trade receivable from provisional copper and gold concentrate sales, net		264		264		—		—
	$	3,405	$	3,378	$	—	$	27
Liabilities:
Debt (2)	$	5,874	$	—	$	5,874	$	—
Derivative instruments, net:
Foreign exchange forward contracts		36		—		36		—
Diesel forward contracts		12		—		12		—
Boddington contingent consideration		12		—		—		12
Holt property royalty		200		—		—		200
	$	6,134	$	—	$	5,922	$	212


	Fair Value at December 31, 2015
	Total		Level 1		Level 2		Level 3
Assets:
Cash and cash equivalents	$	2,782	$	2,782	$	—	$	—
Restricted assets (1)		132		132		—		—
Marketable equity securities:
Extractive industries		186		186		—		—
Other		16		16		—		—
Marketable debt securities:
Asset backed commercial paper		18		—		—		18
Auction rate securities		7		—		—		7
Trade receivable from provisional copper and gold concentrate sales, net		178		178		—		—
	$	3,319	$	3,294	$	—	$	25
Liabilities:
Debt (2)	$	5,469	$	—	$	5,469	$	—
Derivative instruments, net:
Foreign exchange forward contracts		60		—		60		—
Diesel forward contracts		32		—		32		—
Boddington contingent consideration		10		—		—		10
Holt property royalty		129		—		—		129
	$	5,700	$	—	$	5,561	$	139

⁽¹⁾

Restricted assets include cash and marketable securities whose carrying amounts approximate their fair value.

⁽²⁾

Debt, exclusive of capital leases, is carried at amortized cost. The outstanding carrying value was $5,550 and $6,167 at June 30, 2016 and December 31, 2015, respectively. The fair value measurement of debt was based on prices obtained from readily available pricing sources.

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NEWMONT MINING CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

(dollars in millions, except per share, per ounce and per pound amounts)

The fair values of the derivative instruments in the table above are presented on a net basis. The gross amounts related to the fair value of the derivatives instruments above are included in Note 12. All other fair value disclosures in the above table are presented on a gross basis.

The Company’s cash and cash equivalent instruments are classified within Level 1 of the fair value hierarchy because they are valued using quoted market prices. The cash and cash equivalent instruments that are valued based on quoted market prices in active markets are primarily money market securities and U.S. Treasury securities.

The Company’s marketable equity securities are valued using quoted market prices in active markets and, as such, are classified within Level 1 of the fair value hierarchy. The securities are segregated based on industry. The fair value of the marketable equity securities is calculated as the quoted market price of the marketable equity security multiplied by the quantity of shares held by the Company.

The Company’s marketable debt securities include investments in auction rate securities and asset backed commercial paper. The Company reviews the fair value for auction rate securities and asset backed commercial paper on a quarterly basis. The marketable debt securities are traded in markets that are not active, trade infrequently and have little price transparency. Therefore, the investments are classified as Level 3 of the fair value hierarchy. See the table below which sets forth a summary of the quantitative and qualitative information related to the significant unobservable inputs used in the calculation of the fair value.

The Company’s net trade receivable from provisional copper and gold concentrate sales, subject to final pricing, is valued using quoted market prices based on forward curves and, as such, is classified within Level 1 of the fair value hierarchy.

The Company’s derivative instruments are valued using pricing models and the Company generally uses similar models to value similar instruments. Valuation models require a variety of inputs, including contractual terms, market prices, forward curves, measures of volatility and correlations of such inputs. The Company’s derivatives trade in liquid markets and, as such, model inputs can generally be verified and do not involve significant management judgment. Such instruments are classified within Level 2 of the fair value hierarchy.

The estimated value of the Boddington contingent royalty was determined using a (i) discounted cash flow model, (ii) Monte Carlo valuation model to simulate future gold and copper prices using the Company’s long-term gold and copper prices and (iii) Monte Carlo valuation model to simulate costs applicable to sales using the Company’s Australian to U.S. dollar exchange rate. This contingent royalty is capped at $100, of which $72 has been paid to date.

The estimated fair value of the Holt sliding scale royalty was determined using (i) a discounted cash flow model, (ii) a Monte Carlo valuation model to simulate future gold prices using the Company’s long-term gold price, (iii) various gold production scenarios from reserve and resource information and (iv) a weighted average discount rate. The sliding scale royalty liability is classified within Level 3 of the fair value hierarchy.

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NEWMONT MINING CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

(dollars in millions, except per share, per ounce and per pound amounts)

The following tables set forth a summary of the quantitative and qualitative information related to the unobservable inputs used in the calculation of the Company’s Level 3 financial assets and liabilities at June 30, 2016 and December 31, 2015:


	At June 30,				Range/Weighted
Description	2016		Valuation technique	Unobservable input	average
Auction rate securities	$	7	Risk-adjusted indicative price	Recoverability rate		90	%
Asset backed commercial paper	$	20	Risk-adjusted indicative price	Recoverability rate		90	%
Boddington contingent consideration	$	12	Monte Carlo	Discount rate		3.07	%
				Short-term gold price	$	1,260
				Long-term gold price	$	1,300
				Short-term copper price	$	2.14
				Long-term copper price	$	3.00
				Long-term Australian to U.S. dollar exchange rate	$	0.80
Holt property royalty	$	200	Monte Carlo	Discount rate		3.27	%
				Short-term gold price	$	1,260
				Long-term gold price	$	1,300
				Gold production scenarios (in 000's of ounces)		365 - 1,603


	At December 31,				Range/Weighted
Description	2015		Valuation technique	Unobservable input	average
Auction rate securities	$	7	Risk-adjusted indicative price	Recoverability rate		85	%
Asset backed commercial paper	$	18	Risk-adjusted indicative price	Recoverability rate		90	%
Boddington contingent consideration	$	10	Monte Carlo	Discount rate		5.32	%
				Short-term gold price	$	1,106
				Long-term gold price	$	1,300
				Short-term copper price	$	2.22
				Long-term copper price	$	3.00
				Long-term Australian to U.S. dollar exchange rate	$	0.80
Holt property royalty	$	129	Monte Carlo	Discount rate		5.06	%
				Short-term gold price	$	1,106
				Long-term gold price	$	1,300
				Gold production scenarios (in 000's of ounces)		398 - 1,636

The following tables set forth a summary of changes in the fair value of the Company’s Level 3 financial assets and liabilities:


			Asset
	Auction		Backed				Boddington		Holt
	Rate		Commercial		Total		Contingent		Property		Total
	Securities(1)		Paper(1)		Assets		Consideration(2)		Royalty(3)		Liabilities
Fair value at December 31, 2015	$	7	$	18	$	25	$	10	$	129	$	139
Settlements		—		—		—		—		(5)		(5)
Revaluation		—		2		2		2		76		78
Fair value at June 30, 2016	$	7	$	20	$	27	$	12	$	200	$	212

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NEWMONT MINING CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

(dollars in millions, except per share, per ounce and per pound amounts)


			Asset
	Auction		Backed				Boddington		Holt
	Rate		Commercial		Total		Contingent		Property		Total
	Securities(1)		Paper(1)		Assets		Consideration(2)		Royalty(3)		Liabilities
Fair value at December 31, 2014	$	6	$	24	$	30	$	10	$	179	$	189
Settlements		—		—		—		—		(6)		(6)
Revaluation		1		(2)		(1)		—		(25)		(25)
Fair value at June 30, 2015	$	7	$	22	$	29	$	10	$	148	$	158

⁽¹⁾

The gain (loss) recognized is included in Accumulated other comprehensive income (loss).

⁽²⁾

The gain (loss) recognized is included in Other expense, net.

⁽³⁾

The gain (loss) recognized is included in Income (loss) from discontinued operations.

NOTE 12 DERIVATIVE INSTRUMENTS

The Company’s strategy is to provide shareholders with leverage to changes in gold and copper prices by selling its production at spot market prices. Consequently, the Company does not hedge its gold and copper sales. The Company has and will continue to manage certain risks associated with commodity input costs, interest rates and foreign currencies using the derivative market. All of the derivative instruments described below were transacted for risk management purposes and qualify as cash flow hedges.

Cash Flow Hedges

The following foreign currency and diesel contracts are designated as cash flow hedges and, as such, the effective portion of unrealized changes in market value have been recorded in Accumulated other comprehensive income (loss) and are reclassified to income during the period in which the hedged transaction affects earnings. Gains and losses from hedge ineffectiveness are recognized in current earnings.

Foreign Currency Contracts

The Company had the following foreign currency derivative contracts in Asia Pacific outstanding at June 30, 2016:


	Expected Maturity Date
	2016		2017		2018		Total/Average
A$ Operating Fixed Forward Contracts:
A$ notional (millions)	72		105		6		183
Average rate ($/A$)	0.95		0.93		0.92		0.94
Expected hedge ratio	11	%	8	%	4	%

The A$ hedges run through the first quarter of 2018.

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NEWMONT MINING CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

(dollars in millions, except per share, per ounce and per pound amounts)

Diesel Fixed Forward Contracts

The Company had the following diesel derivative contracts in North America outstanding at June 30, 2016:


	Expected Maturity Date
	2016		2017		Total/Average
Diesel Fixed Forward Contracts:
Diesel gallons (millions)	12		15		27
Average rate ($/gallon)	2.14		1.75		1.92
Expected hedge ratio	61	%	39	%

Newmont hedges a portion of its operating cost exposure related to diesel consumed at its Nevada operations to reduce the variability in diesel prices. The hedging instruments consist of a series of financially settled fixed forward contracts, which run through the fourth quarter of 2017.

Derivative Instrument Fair Values

The Company had the following derivative instruments designated as hedges at June 30, 2016 and December 31, 2015:


	Fair Values of Derivative Instruments
	At June 30, 2016
	Other		Other		Other		Other
	Current		Non-current		Current		Non-current
	Assets		Assets		Liabilities		Liabilities
Foreign currency exchange contracts:
A$ operating fixed forwards	$	—	$	—	$	26	$	10
Diesel fixed forwards		1		1		13		1
Total derivative instruments	$	1	$	1	$	39	$	11


	Fair Values of Derivative Instruments
	At December 31, 2015
	Other		Other		Other		Other
	Current		Non-current		Current		Non-current
	Assets		Assets		Liabilities		Liabilities
Foreign currency exchange contracts:
A$ operating fixed forwards	$	—	$	—	$	36	$	24
Diesel fixed forwards		—		—		27		5
Total derivative instruments	$	—	$	—	$	63	$	29

As of June 30, 2016 and December 31, 2015, all derivative instruments held by the Company were subject to enforceable master netting arrangements held by various financial institutions. In general, the terms of the Company’s agreements provide for offsetting of amounts payable or receivable between it and the counterparty, at the election of both parties, for transactions that occur on the same date and in the same currency. The Company’s agreements also provide that in the event of an early termination, the counterparties have the right to offset amounts owed or owing under that and any other agreement with the same counterparty. The Company’s accounting policy is to not offset these positions in its accompanying balance sheets. As of June 30, 2016, the potential effect of netting derivative assets against liabilities due to the master netting agreements was $2. As of December 31, 2015, all gross amounts presented in the accompanying balance sheets were in a liability position.

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NEWMONT MINING CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

(dollars in millions, except per share, per ounce and per pound amounts)

The following tables show the location and amount of gains (losses) reported in the Company’s Condensed Consolidated Financial Statements related to the Company’s hedges.


	Foreign Currency				Diesel Fixed				Interest
	Exchange Contracts				Forward Contracts				Rate Contracts
	2016		2015		2016		2015		2016		2015
For the three months ended June 30,
Cash flow hedging relationships:
Gain (loss) recognized in Other comprehensive income (loss) (effective portion)	$	(3)	$	3	$	7	$	4	$	—	$	—
Gain (loss) reclassified from Accumulated other comprehensive income (loss) into income (loss) (effective portion) (1)	$	(10)	$	(6)	$	(5)	$	(6)	$	(5)	$	(4)
Gain (loss) reclassified from Accumulated other comprehensive income (loss) into income (loss) (ineffective portion) (2)	$	—	$	—	$	1	$	—	$	—	$	—
For the six months ended June 30,
Cash flow hedging relationships:
Gain (loss) recognized in Other comprehensive income (loss) (effective portion)	$	4	$	(24)	$	5	$	(1)	$	—	$	—
Gain (loss) reclassified from Accumulated other comprehensive income (loss) into income (loss) (effective portion) (1)	$	(20)	$	(13)	$	(14)	$	(13)	$	(8)	$	(9)
Gain (loss) reclassified from Accumulated other comprehensive income (loss) into income (loss) (ineffective portion) (2)	$	—	$	—	$	1	$	1	$	—	$	—

⁽¹⁾

The gain (loss) recognized for the effective portion of cash flow hedges is included in Cost applicable to sales and Interest expense, net.

⁽²⁾

The ineffective portion recognized for cash flow hedges is included in Other income, net.

Based on fair values at June 30, 2016, the amount to be reclassified from Accumulated other comprehensive income (loss), net of tax to income for derivative instruments during the next 12 months is a loss of approximately $41.

Provisional Gold and Copper Sales

The Company’s provisional gold and copper concentrate sales contain an embedded derivative that is required to be separated from the host contract for accounting purposes. The host contract is the receivable from the sale of the gold and copper concentrates at the prevailing indices’ prices at the time of sale. The embedded derivative, which does not qualify for hedge accounting, is marked to market through earnings each period prior to final settlement.

At June 30, 2016, Newmont had gold and copper sales of 258,000 ounces and 125 million pounds priced at an average of $1,323 per ounce and $2.19 per pound, respectively, subject to final pricing over the next several months.

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NEWMONT MINING CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

(dollars in millions, except per share, per ounce and per pound amounts)

NOTE 13 INVESTMENTS


	At June 30, 2016
	Cost/Equity		Unrealized				Fair/Equity
	Basis		Gain		Loss		Basis
Current:
Marketable Equity Securities:
Gabriel Resources Ltd.	$	5	$	13	$	—	$	18
Other		14		15		(1)		28
	$	19	$	28	$	(1)	$	46
Non-current:
Marketable Debt Securities:
Asset backed commercial paper	$	19	$	1	$	—	$	20
Auction rate securities		8		—		(1)		7
		27		1		(1)		27

Marketable Equity Securities		19		2		—		21

Other investments, at cost		6		—		—		6

Equity Method Investments:
TMAC		97		—		—		97
Minera La Zanja S.R.L.		68		—		—		68
Novo Resources Corp.		15		—		—		15
Euronimba Ltd.		3		—		—		3
	$	235	$	3	$	(1)	$	237


	At December 31, 2015
	Cost/Equity		Unrealized				Fair/Equity
	Basis		Gain		Loss		Basis
Current:
Marketable Equity Securities:
Gabriel Resources Ltd.	$	5	$	—	$	—	$	5
Other		14		2		(2)		14
	$	19	$	2	$	(2)	$	19
Non-current:
Marketable Debt Securities:
Asset backed commercial paper	$	17	$	1	$	—	$	18
Auction rate securities		8		—		(1)		7
		25		1		(1)		25
Marketable Equity Securities:
Regis Resources Ltd.		81		82		—		163
Other		17		3		—		20
		98		85		—		183

Other investments, at cost		6		—		—		6

Equity Method Investments:
TMAC		101		—		—		101
Minera La Zanja S.R.L.		71		—		—		71
Novo Resources Corp.		14		—		—		14
Euronimba Ltd.		2		—		—		2
	$	317	$	86	$	(1)	$	402

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NEWMONT MINING CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

(dollars in millions, except per share, per ounce and per pound amounts)

In March 2016, the Company sold its investment in Regis Resources Ltd. for $184, resulting in a pre-tax gain of $103 recorded in Other income, net. The cost of the investment sold was determined using the specific identification method.

In March 2016, Newmont participated in the TMAC offering acquiring 242,979 shares for C$2, maintaining its 29.37% ownership interest. During the three months ended June 30, 2016, Newmont’s ownership interest was diluted to 29.2% due primarily to the exercising of warrants held by other shareholders. In July 2016, Newmont participated in a second offering acquiring an additional 1,159,000 shares for C$17.5, maintaining its 29.2% ownership interest. During 2015, Newmont determined that TMAC was no longer considered a variable interest entity and should no longer be consolidated into Newmont’s financial results due to a number of financing events, which took place during the year. Newmont deconsolidated the assets, liabilities and non-controlling interest related to TMAC and recognized a gain of $76, recorded within Other income, net, during the third quarter of 2015. The fair value of the retained investment was valued utilizing the market approach applying the IPO share price. Newmont’s retained investment in TMAC is accounted for as an equity method investment.

There were no investment impairments for other-than-temporary declines in value during the three and six months ended June 30, 2016. As of June 30, 2016, there was a $22 increase in the fair value of marketable securities previously impaired, primarily due to Gabriel Resources Ltd., Pilot Gold, Eurasian Minerals Inc. and Loncor Resources Inc. During the three and six months ended June 30, 2015, the Company recognized investment impairments for other-than-temporary declines in value of $16 and $73, respectively, primarily related to Regis Resources Ltd., as a result of the continued decline in the stock price. As of June 30, 2015, there was a $26 decrease in the fair value of marketable securities previously impaired, primarily due to Gabriel Resources Ltd. and Pilot Gold.

The following tables present the gross unrealized losses and fair value of the Company’s investments with unrealized losses that are deemed to be temporarily impaired, aggregated by length of time that the individual securities have been in a continuous unrealized loss position:


	Less than 12 Months				12 Months or Greater				Total
At June 30, 2016	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Marketable equity securities	$	4	$	1	$	—	$	—	$	4	$	1
Auction rate securities		—		—		7		1		7		1
	$	4	$	1	$	7	$	1	$	11	$	2


	Less than 12 Months				12 Months or Greater				Total
At December 31, 2015	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Marketable equity securities	$	5	$	2	$	—	$	—	$	5	$	2
Auction rate securities		—		—		7		1		7		1
	$	5	$	2	$	7	$	1	$	12	$	3

While the fair value of some of the Company’s investments in marketable equity securities and auction rate securities are below their respective cost, the Company views these declines as temporary. The Company has the ability and intends to hold its securities until maturity or such time that the market recovers.

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NEWMONT MINING CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

(dollars in millions, except per share, per ounce and per pound amounts)

NOTE 14 INVENTORIES


	At June 30,		At December 31,
	2016		2015
Materials and supplies	$	457	$	454
Concentrate and copper cathode		137		128
In-process		123		118
Precious metals		11		10
	$	728	$	710

NOTE 15 STOCKPILES AND ORE ON LEACH PADS


	At June 30,		At December 31,
	2016		2015
Current:
Stockpiles	$	543	$	554
Ore on leach pads		410		342
	$	953	$	896
Non-current:
Stockpiles	$	2,595	$	2,622
Ore on leach pads		361		378
	$	2,956	$	3,000


	At June 30,		At December 31,
	2016		2015
Stockpiles and ore on leach pads:
Carlin	$	440	$	394
Phoenix		105		106
Twin Creeks		334		329
Long Canyon		1		—
CC&V		348		319
Yanacocha		409		440
Merian		8		4
Boddington		395		390
Tanami		8		12
Kalgoorlie		107		109
Batu Hijau		1,158		1,218
Ahafo		471		456
Akyem		125		119
	$	3,909	$	3,896

During the three and six months ended June 30, 2016, the Company recorded write-downs of $57 and $107, respectively, classified as components of Costs applicable to sales and write-downs of $26 and $50, respectively, classified as components of Depreciation and amortization to reduce the carrying value of stockpiles and ore on leach pads to net realizable value. Adjustments to net realizable value are a result of higher future processing costs in addition to stripping campaigns driving lower grade and lower recovery resulting in higher costs per unit. Of the write-downs during the three months ended June 30, 2016, $31 is related to Carlin, $10 to Twin Creeks and $42 to Yanacocha. Of the write-downs during the six months ended June 30, 2016, $58 is related to Carlin, $12 to Twin Creeks and $87 to Yanacocha.

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NEWMONT MINING CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

(dollars in millions, except per share, per ounce and per pound amounts)

NOTE 16 DEBT

On March 29, 2016, the Company accepted for purchase approximately $274 of its 2019 Notes and $226 of its 2039 Notes through a debt tender offer. The company recorded a net pre-tax loss of $4 in Other income, net as a result of the debt tender offer. Additionally, the Company reclassified $2 in Interest expense, net from Accumulated other comprehensive income (loss) related to the acceleration of the unrealized gains on the treasury rate lock contracts, which were entered into upon issuance of the Notes in 2009.

During the second quarter, the company paid $140 on the PTNNT revolving credit facility. There was $24 and $nil in current restricted assets at June 30, 2016 and December 31, 2015, respectively, for future payments on the PTNNT revolving credit facility as required by local statutes. Current restricted assets are included in Other current assets.

Scheduled minimum debt repayments are $3 for the remainder of 2016, $765 in 2017, $nil in 2018, $901 in 2019, $nil in 2020 and $3,974 thereafter. Scheduled minimum capital lease repayments are $3 in 2016, $6 in 2017, $4 in 2018, $4 in 2019, $1 in 2020 and $3 thereafter.

NOTE 17 OTHER LIABILITIES


	At June 30,		At December 31,
	2016		2015
Other current liabilities:
Accrued operating costs	$	122	$	105
Accrued capital expenditures		86		121
Reclamation and remediation liabilities		69		71
Accrued interest		63		71
Derivative instruments		39		63
Royalties		52		63
Holt property royalty		13		10
Taxes other than income and mining		6		9
Other		29		27
	$	479	$	540

Other non-current liabilities:
Holt property royalty	$	187	$	119
Income and mining taxes		80		78
Power supply agreements		31		31
Social development obligations		29		29
Derivative instruments		11		29
Boddington contingent consideration		10		10
Other		13		14
	$	361	$	310

Table of Contents

NEWMONT MINING CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

(dollars in millions, except per share, per ounce and per pound amounts)

NOTE 18 CHANGES IN EQUITY


	Six Months Ended June 30,
	2016		2015
Common stock:
At beginning of period	$	847	$	798
Stock-based awards		2		2
Stock issuance		—		46
At end of period		849		846
Additional paid-in capital:
At beginning of period		9,427		8,712
Stock-based awards		30		38
Stock issuance		—		629
Sale of noncontrolling interests		—		12
At end of period		9,457		9,391
Accumulated other comprehensive income (loss):
At beginning of period		(334)		(478)
Other comprehensive income (loss)		(7)		38
At end of period		(341)		(440)
Retained earnings:
At beginning of period		1,410		1,242
Net income (loss) attributable to Newmont stockholders		75		255
Dividends paid		(27)		(23)
At end of period		1,458		1,474
Noncontrolling interests:
At beginning of period		2,942		2,815
Net income (loss) attributable to noncontrolling interests		122		122
Dividends paid to noncontrolling interests		(146)		(3)
Funding from noncontrolling interests, net		43		45
Sale of noncontrolling interests, net		—		22
Other		(1)		(4)
At end of period		2,960		2,997
Total equity	$	14,383	$	14,268

NOTE 19 RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)


					Pension and		Changes in
	Unrealized gain		Foreign		other		fair value of
	(loss) on		currency		post‑retirement		cash flow
	marketable		translation		benefit		hedge
	securities, net		adjustments		adjustments		instruments		Total
Balance at December 31, 2015	$	(43)	$	116	$	(207)	$	(200)	$	(334)
Change in other comprehensive income (loss) before reclassifications		47		7		1		7		62
Reclassifications from accumulated other comprehensive income (loss)		(103)		—		6		28		(69)
Net current-period change		(56)		7		7		35		(7)
Balance at June 30, 2016	$	(99)	$	123	$	(200)	$	(165)	$	(341)

Table of Contents

NEWMONT MINING CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

(dollars in millions, except per share, per ounce and per pound amounts)


Details about Accumulated Other Comprehensive Income (Loss) Components	Amount Reclassified from Accumulated Other Comprehensive Income (Loss)								Affected Line Item in the Condensed Consolidated Statements of Income
	Three Months Ended June 30,				Six Months Ended June 30,
	2016		2015		2016		2015
Marketable securities adjustments:
Sale of marketable securities	$	—	$	—	$	(103)	$	(1)	Other income, net
Impairment of marketable securities		—		16		—		73	Other income, net
Total before tax		—		16		(103)		72
Tax benefit (expense)		—		—		—		—
Net of tax	$	—	$	16	$	(103)	$	72
Pension and other post-retirement benefit adjustments:
Amortization	$	4	$	7	$	9	$	14	(1)
Tax benefit (expense)		(1)		(2)		(3)		(4)
Net of tax	$	3	$	5	$	6	$	10

Hedge instruments adjustments:
Operating cash flow hedges (effective portion)	$	15	$	12	$	34	$	26	Costs applicable to sales
Operating cash flow hedges (ineffective portion)		(1)		—		(1)		(1)	Other income, net
Interest rate contracts		5		4		8		9	Interest expense, net
Total before tax		19		16		41		34
Tax benefit (expense)		(5)		(5)		(13)		(11)
Net of tax	$	14	$	11	$	28	$	23
Total reclassifications for the period, net of tax	$	17	$	32	$	(69)	$	105

⁽¹⁾

Included in General and administrative or included as a component of Costs applicable to sales, which are incurred in the inventory/production process. Refer to Note 2 to the Consolidated Financial Statements for the year ended December 31, 2015 filed February 17, 2016 on Form 10-K for information on costs that benefit the inventory/production process.

NOTE 20 NET CHANGE IN OPERATING ASSETS AND LIABILITIES

Net cash provided by operating activities attributable to the net change in operating assets and liabilities is composed of the following:


	Six Months Ended June 30,
	2016		2015
Decrease (increase) in operating assets:
Trade and other accounts receivables	$	13	$	(89)
Inventories, stockpiles and ore on leach pads		(120)		(179)
EGR refinery and other assets (1)		—		(82)
Other assets		(32)		78
Increase (decrease) in operating liabilities:
Accounts payable		(51)		(10)
EGR refinery and other liabilities (1)		—		82
Reclamation liabilities		(18)		(38)
Other accrued liabilities		23		(30)
	$	(185)	$	(268)

⁽¹⁾

On July 24, 2015, the Company sold its ownership interest in European Gold Refinery Holdings (“EGR”).

Table of Contents

NEWMONT MINING CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

(dollars in millions, except per share, per ounce and per pound amounts)

NOTE 21 CONDENSED CONSOLIDATING FINANCIAL STATEMENTS

The following Condensed Consolidating Financial Statements are presented to satisfy disclosure requirements of Rule 3-10(e) of Regulation S-X resulting from the inclusion of Newmont USA Limited (“Newmont USA”), a wholly-owned subsidiary of Newmont, as a co-registrant with Newmont on debt securities issued under a shelf registration statement on Form S-3 filed under the Securities Act of 1933 under which securities of Newmont (including debt securities guaranteed by Newmont USA) may be issued (the “Shelf Registration Statement”). In accordance with Rule 3-10(e) of Regulation S-X, Newmont USA, as the subsidiary guarantor, is 100% owned by Newmont, the guarantees are full and unconditional, and no other subsidiary of Newmont guaranteed any security issued under the Shelf Registration Statement. There are no restrictions on the ability of Newmont or Newmont USA to obtain funds from its subsidiaries by dividend or loan.

During the first quarter of 2016, the Company conducted certain restructurings for tax planning purposes which modified the entities owned by the guarantor and impacted their respective Condensed Consolidating Financial statements.


	Three Months Ended June 30, 2016
	(Issuer)		(Guarantor)		(Non-Guarantor)				Newmont
	Newmont								Mining
	Mining		Newmont		Other				Corporation
Condensed Consolidating Statement of Operation	Corporation		USA		Subsidiaries		Eliminations		Consolidated

Sales	$	—	$	459	$	1,579	$	—	$	2,038
Costs and expenses
Costs applicable to sales (1)		—		284		775		—		1,059
Depreciation and amortization		2		76		236		—		314
Reclamation and remediation		—		4		21		—		25
Exploration		—		10		28		—		38
Advanced projects, research and development		—		3		41		—		44
General and administrative		—		23		41		—		64
Other expense, net		—		9		10		—		19
		2		409		1,152		—		1,563
Other income (expense)
Other income, net		(9)		1		8		—		—
Interest income - intercompany		31		—		10		(41)		—
Interest expense - intercompany		(10)		—		(31)		41		—
Interest expense, net		(64)		—		(7)		—		(71)
		(52)		1		(20)		—		(71)
Income (loss) before income and mining tax and other items		(54)		51		407		—		404
Income and mining tax benefit (expense)		(45)		(5)		(260)		—		(310)
Equity income (loss) of affiliates		122		(174)		(5)		52		(5)
Income (loss) from continuing operations		23		(128)		142		52		89
Income (loss) from discontinued operations		—		—		(27)		—		(27)
Net income (loss)		23		(128)		115		52		62
Net loss (income) attributable to noncontrolling interests		—		—		(39)		—		(39)
Net income (loss) attributable to Newmont stockholders	$	23	$	(128)	$	76	$	52	$	23
Comprehensive income (loss)	$	68	$	(116)	$	145	$	10	$	107
Comprehensive loss (income) attributable to noncontrolling interests		—		—		(39)		—		(39)
Comprehensive income (loss) attributable to Newmont stockholders	$	68	$	(116)	$	106	$	10	$	68

⁽¹⁾

Excludes Depreciation and amortization and Reclamation and remediation.

Table of Contents

NEWMONT MINING CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

(dollars in millions, except per share, per ounce and per pound amounts)


	Three Months Ended June 30, 2015
	(Issuer)		(Guarantor)		(Non-Guarantor)				Newmont
	Newmont								Mining
	Mining		Newmont		Other				Corporation
Condensed Consolidating Statement of Operation	Corporation		USA		Subsidiaries		Eliminations		Consolidated

Sales	$	—	$	445	$	1,463	$	—	$	1,908
Costs and expenses
Costs applicable to sales (1)		—		282		745		—		1,027
Depreciation and amortization		1		72		203		—		276
Reclamation and remediation		—		4		22		—		26
Exploration		—		10		38		—		48
Advanced projects, research and development		—		3		30		—		33
General and administrative		—		24		44		—		68
Other expense, net		—		6		21		—		27
		1		401		1,103		—		1,505
Other income (expense)
Other income, net		19		—		(42)		—		(23)
Interest income - intercompany		33		11		2		(46)		—
Interest expense - intercompany		(4)		—		(42)		46		—
Interest expense, net		(71)		(2)		(9)		—		(82)
		(23)		9		(91)		—		(105)
Income (loss) before income and mining tax and other items		(24)		53		269		—		298
Income and mining tax benefit (expense)		10		(8)		(154)		—		(152)
Equity income (loss) of affiliates		86		(22)		20		(91)		(7)
Income (loss) from continuing operations		72		23		135		(91)		139
Income (loss) from discontinued operations		—		—		9		—		9
Net income (loss)		72		23		144		(91)		148
Net loss (income) attributable to noncontrolling interests		—		—		(102)		26		(76)
Net income (loss) attributable to Newmont stockholders	$	72	$	23	$	42	$	(65)	$	72
Comprehensive income (loss)	$	124	$	67	$	151	$	(142)	$	200
Comprehensive loss (income) attributable to noncontrolling interests		—		—		(102)		26		(76)
Comprehensive income (loss) attributable to Newmont stockholders	$	124	$	67	$	49	$	(116)	$	124

⁽¹⁾

Excludes Depreciation and amortization and Reclamation and remediation.

Table of Contents

NEWMONT MINING CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

(dollars in millions, except per share, per ounce and per pound amounts)


	Six Months Ended June 30, 2016
	(Issuer)		(Guarantor)		(Non-Guarantor)				Newmont
	Newmont								Mining
	Mining		Newmont		Other				Corporation
Condensed Consolidating Statement of Operation	Corporation		USA		Subsidiaries		Eliminations		Consolidated

Sales	$	—	$	930	$	3,140	$	—	$	4,070
Costs and expenses
Costs applicable to sales (1)		—		590		1,550		—		2,140
Depreciation and amortization		2		160		474		—		636
Reclamation and remediation		—		7		43		—		50
Exploration		—		16		52		—		68
Advanced projects, research and development		—		5		67		—		72
General and administrative		—		40		81		—		121
Other expense, net		—		13		24		—		37
		2		831		2,291		—		3,124
Other income (expense)
Other income, net		—		1		97		—		98
Interest income - intercompany		61		—		19		(80)		—
Interest expense - intercompany		(18)		—		(62)		80		—
Interest expense, net		(135)		(2)		(13)		—		(150)
		(92)		(1)		41		—		(52)
Income (loss) before income and mining tax and other items		(94)		98		890		—		894
Income and mining tax benefit (expense)		30		(16)		(648)		—		(634)
Equity income (loss) of affiliates		139		(448)		(3)		302		(10)
Income (loss) from continuing operations		75		(366)		239		302		250
Income (loss) from discontinued operations		—		—		(53)		—		(53)
Net income (loss)		75		(366)		186		302		197
Net loss (income) attributable to noncontrolling interests		—		—		(122)		—		(122)
Net income (loss) attributable to Newmont stockholders	$	75	$	(366)	$	64	$	302	$	75
Comprehensive income (loss)	$	68	$	(348)	$	155	$	315	$	190
Comprehensive loss (income) attributable to noncontrolling interests		—		—		(122)		—		(122)
Comprehensive income (loss) attributable to Newmont stockholders	$	68	$	(348)	$	33	$	315	$	68

⁽¹⁾

Excludes Depreciation and amortization and Reclamation and remediation.

Table of Contents

NEWMONT MINING CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

(dollars in millions, except per share, per ounce and per pound amounts)


	Six Months Ended June 30, 2015
	(Issuer)		(Guarantor)		(Non-Guarantor)				Newmont
	Newmont								Mining
	Mining		Newmont		Other				Corporation
Condensed Consolidating Statement of Operation	Corporation		USA		Subsidiaries		Eliminations		Consolidated

Sales	$	—	$	947	$	2,933	$	—	$	3,880
Costs and expenses
Costs applicable to sales (1)		—		571		1,483		—		2,054
Depreciation and amortization		2		149		414		—		565
Reclamation and remediation		—		7		42		—		49
Exploration		—		16		65		—		81
Advanced projects, research and development		—		6		55		—		61
General and administrative		—		38		88		—		126
Other expense, net		—		9		35		—		44
		2		796		2,182		—		2,980
Other income (expense)
Other income, net		(9)		9		(12)		—		(12)
Interest income - intercompany		66		11		7		(84)		—
Interest expense - intercompany		(7)		—		(77)		84		—
Interest expense, net		(148)		(3)		(16)		—		(167)
		(98)		17		(98)		—		(179)
Income (loss) before income and mining tax and other items		(100)		168		653		—		721
Income and mining tax benefit (expense)		35		(37)		(343)		—		(345)
Equity income (loss) of affiliates		320		(33)		43		(346)		(16)
Income (loss) from continuing operations		255		98		353		(346)		360
Income (loss) from discontinued operations		—		—		17		—		17
Net income (loss)		255		98		370		(346)		377
Net loss (income) attributable to noncontrolling interests		—		—		(179)		57		(122)
Net income (loss) attributable to Newmont stockholders	$	255	$	98	$	191	$	(289)	$	255
Comprehensive income (loss)	$	293	$	149	$	352	$	(379)	$	415
Comprehensive loss (income) attributable to noncontrolling interests		—		—		(173)		51		(122)
Comprehensive income (loss) attributable to Newmont stockholders	$	293	$	149	$	179	$	(328)	$	293

⁽¹⁾

Excludes Depreciation and amortization and Reclamation and remediation.

Table of Contents

NEWMONT MINING CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

(dollars in millions, except per share, per ounce and per pound amounts)


	Six Months Ended June 30, 2016
	(Issuer)		(Guarantor)		(Non-Guarantor)				Newmont
	Newmont								Mining
	Mining		Newmont		Other				Corporation
Condensed Consolidating Statement of Cash Flows	Corporation		USA		Subsidiaries		Eliminations		Consolidated
Operating activities:
Net cash provided by operating activities	$	720	$	304	$	1,137	$	(862)	$	1,299
Investing activities:
Additions to property, plant and mine development		—		(129)		(462)		—		(591)
Sales of investments		—		—		184		—		184
Sales of other assets		—		—		8		—		8
Other		—		—		(6)		—		(6)
Net cash used in investing activities		—		(129)		(276)		—		(405)
Financing activities:
Repayment of debt		(498)		(1)		(142)		—		(641)
Net intercompany borrowings (repayments)		(195)		(492)		687		—		—
Funding from noncontrolling interests		—		—		50		—		50
Dividends paid to noncontrolling interests		—		—		(146)		—		(146)
Dividends paid to common stockholders		(27)		(862)		—		862		(27)
(Increase) decrease in restricted cash		—		—		(13)		—		(13)
Other		—		—		(1)		—		(1)
Net cash (used in) provided by financing activities		(720)		(1,355)		435		862		(778)
Effect of exchange rate changes on cash		—		—		4		—		4
Net change in cash and cash equivalents		—		(1,180)		1,300		—		120
Cash and cash equivalents at beginning of period		—		1,181		1,601		—		2,782
Cash and cash equivalents at end of period	$	—	$	1	$	2,901	$	—	$	2,902

Table of Contents

NEWMONT MINING CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

(dollars in millions, except per share, per ounce and per pound amounts)


	Six Months Ended June 30, 2015
	(Issuer)		(Guarantor)		(Non-Guarantor)				Newmont
	Newmont								Mining
	Mining		Newmont		Other				Corporation
Condensed Consolidating Statement of Cash Flows	Corporation		USA		Subsidiaries		Eliminations		Consolidated
Operating activities:
Net cash provided by operating activities	$	69	$	175	$	819	$	—	$	1,063
Investing activities:
Additions to property, plant and mine development		—		(160)		(446)		—		(606)
Sales of investments		—		25		4		—		29
Sales of other assets		—		6		38		—		44
Other		—		—		(6)		—		(6)
Net cash used in investing activities		—		(129)		(410)		—		(539)
Financing activities:
Repayment of debt		(200)		(1)		(80)		—		(281)
Net intercompany borrowings (repayments)		(518)		619		(101)		—		—
Proceeds from stock issuance, net		675		—		—		—		675
Sale of noncontrolling interests		—		3		34		—		37
Funding from noncontrolling interests		—		—		62		—		62
Dividends paid to noncontrolling interests		—		—		(3)		—		(3)
Dividends paid to common stockholders		(23)		—		—		—		(23)
(Increase) decrease in restricted cash		—		—		(59)		—		(59)
Other		(3)		1		(6)		—		(8)
Net cash (used in) provided by financing activities		(69)		622		(153)		—		400
Effect of exchange rate changes on cash		—		—		(19)		—		(19)
Net change in cash and cash equivalents		—		668		237		—		905
Cash and cash equivalents at beginning of period		—		1,097		1,306		—		2,403
Cash and cash equivalents at end of period	$	—	$	1,765	$	1,543	$	—	$	3,308

Table of Contents

NEWMONT MINING CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

(dollars in millions, except per share, per ounce and per pound amounts)


	At June 30, 2016
	(Issuer)		(Guarantor)		(Non-Guarantor)				Newmont
	Newmont								Mining
	Mining		Newmont		Other				Corporation
Condensed Consolidating Balance Sheet	Corporation		USA		Subsidiaries		Eliminations		Consolidated
Assets:
Cash and cash equivalents	$	—	$	1	$	2,901	$	—	$	2,902
Trade receivables		—		35		280		—		315
Other accounts receivables		—		1		193		—		194
Intercompany receivable		5,546		5,806		10,486		(21,838)		—
Investments		—		—		46		—		46
Inventories		—		144		584		—		728
Stockpiles and ore on leach pads		—		260		693		—		953
Other current assets		—		40		116		—		156
Current assets		5,546		6,287		15,299		(21,838)		5,294
Property, plant and mine development, net		23		3,172		11,077		(38)		14,234
Investments		—		15		222		—		237
Investments in subsidiaries		14,654		1,422		—		(16,076)		—
Stockpiles and ore on leach pads		—		612		2,344		—		2,956
Deferred income tax assets		266		311		1,177		(490)		1,264
Non-current intercompany receivable		1,703		532		112		(2,347)		—
Other non-current assets		—		206		512		—		718
Total assets	$	22,192	$	12,557	$	30,743	$	(40,789)	$	24,703
Liabilities:
Debt	$	—	$	3	$	193	$	—	$	196
Accounts payable		—		60		288		—		348
Intercompany payable		5,261		4,873		11,704		(21,838)		—
Employee-related benefits		—		85		126		—		211
Income and mining taxes		—		5		121		—		126
Other current liabilities		62		94		323		—		479
Current liabilities		5,323		5,120		12,755		(21,838)		1,360
Debt		5,361		5		9		—		5,375
Reclamation and remediation liabilities		—		237		1,598		—		1,835
Deferred income tax liabilities		—		88		1,328		(490)		926
Employee-related benefits		2		292		169		—		463
Non-current intercompany payable		83		—		2,302		(2,385)		—
Other non-current liabilities		—		29		332		—		361
Total liabilities		10,769		5,771		18,493		(24,713)		10,320
Equity:
Newmont stockholders’ equity		11,423		6,786		9,290		(16,076)		11,423
Noncontrolling interests		—		—		2,960		—		2,960
Total equity		11,423		6,786		12,250		(16,076)		14,383
Total liabilities and equity	$	22,192	$	12,557	$	30,743	$	(40,789)	$	24,703

Table of Contents

NEWMONT MINING CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

(dollars in millions, except per share, per ounce and per pound amounts)


	At December 31, 2015
	(Issuer)		(Guarantor)		(Non-Guarantor)				Newmont
	Newmont								Mining
	Mining		Newmont		Other				Corporation
Condensed Consolidating Balance Sheet	Corporation		USA		Subsidiaries		Eliminations		Consolidated
Assets:
Cash and cash equivalents	$	—	$	1,181	$	1,601	$	—	$	2,782
Trade receivables		—		31		229		—		260
Other accounts receivables		—		—		185		—		185
Intercompany receivable		4,587		6,212		8,101		(18,900)		—
Investments		—		—		19		—		19
Inventories		—		158		552		—		710
Stockpiles and ore on leach pads		—		201		695		—		896
Other current assets		—		53		78		—		131
Current assets		4,587		7,836		11,460		(18,900)		4,983
Property, plant and mine development, net		26		3,179		11,136		(38)		14,303
Investments		—		15		387		—		402
Investments in subsidiaries		15,650		3,886		2,820		(22,356)		—
Stockpiles and ore on leach pads		—		621		2,379		—		3,000
Deferred income tax assets		223		757		1,228		(490)		1,718
Non-current intercompany receivable		1,742		434		108		(2,284)		—
Other non-current assets		—		253		477		—		730
Total assets	$	22,228	$	16,981	$	29,995	$	(44,068)	$	25,136
Liabilities:
Debt	$	—	$	3	$	146	$	—	$	149
Accounts payable		—		78		318		—		396
Intercompany payable		4,888		5,495		8,517		(18,900)		—
Employee-related benefits		—		136		157		—		293
Income and mining taxes		—		—		38		—		38
Other current liabilities		70		133		337		—		540
Current liabilities		4,958		5,845		9,513		(18,900)		1,416
Debt		5,839		7		195		—		6,041
Reclamation and remediation liabilities		—		231		1,569		—		1,800
Deferred income tax liabilities		—		85		1,245		(490)		840
Employee-related benefits		—		283		154		—		437
Non-current intercompany payable		81		—		2,241		(2,322)		—
Other non-current liabilities		—		37		273		—		310
Total liabilities		10,878		6,488		15,190		(21,712)		10,844
Equity:
Newmont stockholders’ equity		11,350		10,493		10,202		(20,695)		11,350
Noncontrolling interests		—		—		4,603		(1,661)		2,942
Total equity		11,350		10,493		14,805		(22,356)		14,292
Total liabilities and equity	$	22,228	$	16,981	$	29,995	$	(44,068)	$	25,136

NOTE 22 COMMITMENTS AND CONTINGENCIES

General

Estimated losses from contingencies are accrued by a charge to income when information available prior to issuance of the financial statements indicates that it is probable that a liability could be incurred and the amount of the loss can be reasonably estimated. Legal expenses associated with the contingency are expensed as incurred. If a loss contingency is not probable or reasonably estimable, disclosure of the contingency and estimated range of loss, if

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determinable, is made in the financial statements when it is at least reasonably possible that a material loss could be incurred.

Operating Segments

The Company’s operating segments are identified in Note 4. Except as noted in this paragraph, all of the Company’s commitments and contingencies specifically described herein are included in Corporate and Other. The Yanacocha matters relate to the South America reportable segment. The PTNNT matters relate to the Asia Pacific reportable segment. The Fronteer matters relate to the North America reportable segment.

Environmental Matters

The Company’s mining and exploration activities are subject to various laws and regulations governing the protection of the environment. These laws and regulations are continually changing and are generally becoming more restrictive. The Company conducts its operations so as to protect the public health and environment and believes its operations are in compliance with applicable laws and regulations in all material respects. The Company has made, and expects to make in the future, expenditures to comply with such laws and regulations, but cannot predict the full amount of such future expenditures.

Reclamation costs are allocated to expense over the life of the related assets and are periodically adjusted to reflect changes in the estimated present value resulting from the passage of time and revisions to the estimates of either the timing or amount of the reclamation costs. Reclamation obligations are based on when the spending for an existing environmental disturbance will occur. The Company reviews, on at least an annual basis, the reclamation obligation at each mine.

Accounting for reclamation obligations requires management to make estimates unique to each mining operation of the future costs the Company will incur to complete the reclamation work required to comply with existing laws and regulations. As mining operations progress over their mine life, the Company is able to more accurately predict the estimated future reclamation costs. Any such changes in future costs, the timing of reclamation activities, or scope could materially impact the amounts charged to earnings for reclamation. Additionally, future changes to environmental laws and regulations could increase the extent of reclamation work required.

In early 2015, the Peruvian government agency responsible for certain environmental regulations, the Ministry of the Environment (“MINAM”), issued proposed water quality criteria for designated beneficial uses which apply to mining companies, including Yanacocha. These criteria would modify the in-stream water quality criteria pursuant to which Yanacocha has been designing water treatment processes and infrastructure. In December 2015, MINAM issued the final regulation that modified the water quality standards and the Company has one year to submit a modification to the previously approved Environmental Impact Assessment which is due February 15, 2017. A total of up to four years are allowed for permitting, detailed engineering, and construction of water treatment facilities required for compliance with the new water quality standards. Yanacocha is currently assessing treatment options in connection with the new water quality standards, which are expected to result in increased costs. If Yanacocha is unsuccessful in designing, constructing and implementing effective treatment options in the next four years, it could result in potential fines and penalties relating to potential intermittent non-compliant exceedances.

In addition to assessing water treatment options to comply with the new water standards described above, the Company is also performing a comprehensive update to the Yanacocha reclamation plan to address stakeholder input and changes in closure activities and estimated closure costs while preserving optionality for potential future projects at Yanacocha.

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(dollars in millions, except per share, per ounce and per pound amounts)

The revised reclamation plan, once approved, could result in a material increase in the reclamation obligation at Yanacocha. Additionally, increases in the future reclamation costs at Yanacocha could result in a significant increase in all-in sustaining costs per ounce and possibly result in impairments to Yanacocha’s long-lived assets based upon then current mine plans. The Company will continue to advance the update to the Yanacocha reclamation plan and expects to further refine the associated cost estimates in late 2016 in connection with completing the revised Environmental Impact Assessment and our mine planning process.

For a complete discussion of the factors that influence our reclamation obligations and the associated risks, refer to Managements’ Discussion and Analysis of Consolidated Financial Condition and Results of Operations under the heading “Critical Accounting Policies” and refer to Risk Factors under the heading “Mine closure and remediation costs for environmental liabilities may exceed the provisions we have made” for the year ended December 31, 2015 filed February 17, 2016 on Form 10-K.

At June 30, 2016 and December 31, 2015, $1,593 and $1,553, respectively, were accrued for reclamation costs relating to currently or recently producing mineral properties in accordance with asset retirement obligation guidance. The current portions of $35 and $37 at June 30, 2016 and December 31, 2015, respectively, are included in Other current liabilities.

In addition, the Company is involved in several matters concerning environmental obligations associated with former mining activities. Generally, these matters concern developing and implementing remediation plans at the various sites involved. The Company believes that the related environmental obligations associated with these sites are similar in nature with respect to the development of remediation plans, their risk profile and the compliance required to meet general environmental standards. Based upon the Company’s best estimate of its liability for these matters, $311 and $318 were accrued for such obligations at June 30, 2016 and December 31, 2015, respectively. These amounts are included in Other current liabilities and Reclamation and remediation liabilities. Depending upon the ultimate resolution of these matters, the Company believes that it is reasonably possible that the liability for these matters could be as much as 41% greater or 1% lower than the amount accrued at June 30, 2016. The amounts accrued are reviewed periodically based upon facts and circumstances available at the time. Changes in estimates are recorded in Reclamation and remediation in the period estimates are revised.

Refer to Note 5 for further information regarding reclamation and remediation. Details about certain of the more significant matters are discussed below.

Newmont USA Limited - 100% Newmont Owned

Ross-Adams Mine Site. By letter dated June 5, 2007, the U.S. Forest Service (“USFS”) notified Newmont that it had expended approximately $0.3 in response costs to address environmental conditions at the Ross-Adams mine in Prince of Wales, Alaska, and requested Newmont USA Limited pay those costs and perform an Engineering Evaluation/Cost Analysis (“EE/CA”) to assess what future response activities might need to be completed at the site. Newmont agreed to perform the EE/CA, which has been provided to the USFS. During the first quarter of 2016, the USFS confirmed approval of the EE/CA, and Newmont issued written notice to the USFS certifying that all requirements of the Administrative Settlement Agreement and Order on Consent (“ASAOC”) between the USFS and Newmont have been completed. Newmont anticipates that the USFS will issue an Action Memorandum in the third quarter of 2016 to select the preferred removal action alternative identified in the EE/CA. The ASAOC will be final upon USFS concurrence with the notice of completion and Newmont payment of USFS response costs, which are anticipated to be received from the USFS in the third quarter of 2016. Any future liability associated with the Ross-Adams site would be subject to future negotiations with the USFS. Upon USFS issuing the Action Memorandum, Newmont will resume discussions with another potential responsible party to discuss possible allocation of future costs for

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implementing the remedy. No assurances can be made at this time with respect to the outcome of such negotiations and Newmont cannot predict the likelihood of additional expenditures related to this matter.

Dawn Mining Company LLC (“Dawn”) - 51% Newmont Owned

Midnite Mine Site and Mill Site. Dawn previously leased an open pit uranium mine, currently inactive, on the Spokane Indian Reservation in the State of Washington. The mine site 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 U.S. Environmental Protection Agency (“EPA”).

As per the Consent Decree approved by the U.S. District Court for the Eastern District of Washington on January 17, 2012, the following actions were required of Newmont, Dawn, the Department of the Interior and the EPA: (i) Newmont and Dawn would design, construct and implement the cleanup plan selected by the EPA in 2006 for the Midnite Mine site; (ii) Newmont and Dawn would reimburse the EPA for its costs associated with overseeing the work; (iii) the Department of the Interior would contribute a lump sum amount toward past EPA costs and future costs related to the cleanup of the Midnite Mine site; (iv) Newmont and Dawn would be responsible for all other EPA oversight costs and Midnite Mine site cleanup costs and (v) Newmont would post a surety bond for work at the site.

During 2012, the Department of Interior contributed its share of past EPA costs and future costs related to the cleanup of the Midnite Mine site in a lump sum payment of $42, which Newmont classified as restricted assets with interest on the consolidated balance sheets for all periods presented. Additionally in 2012, Newmont initiated the remedial design process and subsequently submitted interim process update reports at the 30% design, 60% design and 90% design level of completion, which were approved by the EPA in July 2012, April 2014 and April 2015, respectively. Upon approval by the EPA of the 90% design coupled with the resolution of uncertainties regarding site access and material use, the expected remediation design was reasonably certain and Newmont commissioned an independent cost estimate of the overall project costs based on the 90% design. The remediation liability for the Midnite Mine site and Mill site is approximately $215 at June 30, 2016.

Other Legal Matters

Minera Yanacocha S.R.L. - 51.35% Newmont Owned

Choropampa. In June 2000, a transport contractor of Yanacocha spilled approximately 151 kilograms of elemental mercury near the town of Choropampa, Peru, which is located 53 miles (85 kilometers) southwest of the Yanacocha mine. Elemental mercury is not used in Yanacocha’s operations but is a by-product of gold mining and was sold to a Lima firm for use in medical instruments and industrial applications. A comprehensive health and environmental remediation program was undertaken by Yanacocha in response to the incident. In August 2000, Yanacocha paid under protest a fine of 1,740,000 Peruvian soles (approximately $0.5) to the Peruvian government. Yanacocha has entered into settlement agreements with a number of individuals impacted by the incident. As compensation for the disruption and inconvenience caused by the incident, Yanacocha entered into agreements with and provided a variety of public works in the three communities impacted by this incident. Yanacocha cannot predict the likelihood of additional expenditures related to this matter.

Additional lawsuits relating to the Choropampa incident were filed against Yanacocha in the local courts of Cajamarca, Peru, in May 2002 by over 900 Peruvian citizens. A significant number of the plaintiffs in these lawsuits entered into settlement agreements with Yanacocha prior to filing such claims. In April 2008, the Peruvian Supreme Court upheld the validity of these settlement agreements, which the Company expects to result in the dismissal of all claims brought by previously settled plaintiffs. Yanacocha has also entered into settlement agreements with approximately 350 additional plaintiffs. The claims asserted by approximately 200 plaintiffs remain. In 2011, Yanacocha

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was served with 23 complaints alleging grounds to nullify the settlements entered into between Yanacocha and the plaintiffs. Yanacocha has answered the complaints and the court has dismissed several of the matters and the plaintiffs have filed appeals. All appeals were referred to the Civil Court of Cajamarca, which affirmed the decisions of the lower court judge. The plaintiffs have filed appeals of such orders before the Supreme Court. Some of these appeals were dismissed by the Supreme Court in favor of Yanacocha and others are pending resolution. Yanacocha will continue to vigorously defend its position. Neither the Company nor Yanacocha can reasonably estimate the ultimate loss relating to such claims.

Administrative Actions. The Peruvian government agency responsible for environmental evaluation and inspection, Organismo Evaluacion y Fiscalizacion Ambiental (“OEFA”), conducts periodic reviews of the Yanacocha site. In 2011, 2012, 2013, the first quarter of 2015 and second quarter of 2016, OEFA issued notices of alleged violations of OEFA standards to Yanacocha and Conga relating to past inspections. OEFA has resolved some alleged violations with minimal or no findings. Total fines for all outstanding OEFA alleged violations remain dependent upon the number of units associated with the alleged violations. In the first quarter of 2015, the water authority of Cajamarca issued notices of alleged regulatory violations. The alleged OEFA violations currently range from zero to 40,372 units and the water authority alleged violations range from zero to 20,000 units, with each unit having a potential fine equivalent to approximately $.00118 ($0 to $71). Yanacocha and Conga are responding to all notices of alleged violations, but cannot reasonably predict the outcome of the agency allegations.

Conga Project Constitutional Claim. On October 18, 2012, Marco Antonio Arana Zegarra filed a constitutional claim against the Ministry of Energy and Mines and Yanacocha requesting the Court to order the suspension of the Conga project as well as to declare not applicable the October 27, 2010, directorial resolution approving the Conga project Environmental Impact Assessment (“EIA”). On October 23, 2012, a Cajamarca judge dismissed the claims based on formal grounds finding that: (i) plaintiffs had not exhausted previous administrative proceedings; (ii) the directorial resolution approving the Conga EIA is valid, and was not challenged when issued in the administrative proceedings; (iii) there was inadequate evidence to conclude that the Conga project is a threat to the constitutional right of living in an adequate environment and; (iv) the directorial resolution approving the Conga project EIA does not guarantee that the Conga project will proceed, so there was no imminent threat to be addressed by the Court. The plaintiffs appealed the dismissal of the case. The Civil Court of the Superior Court of Cajamarca confirmed the above mentioned resolution and the plaintiff presented an appeal. On March 13, 2015, the Constitutional Court published its ruling stating that the case should be sent back to the first court with an order to formally admit the case and start the judicial process in order to review the claim and the proofs presented by the plaintiff. Yanacocha has answered the claim. Neither the Company nor Yanacocha can reasonably predict the outcome of this litigation.

Yanacocha Tax Dispute. In 2000, Yanacocha paid Buenaventura and Minas Conga S.R.L. a total of $29 to assume their respective contractual positions in mining concession agreements with Chaupiloma Dos de Cajamarca S.M.R.L. The contractual rights allowed Yanacocha the opportunity to conduct exploration on the concessions, but not a purchase of the concessions. The tax authority alleges that the payments to Buenaventura and Minas Conga S.R.L. were acquisitions of mining concessions requiring the amortization of the amounts under the Peru Mining Law over the life of the mine. Yanacocha expensed the amounts at issue in the initial year since the payments were not for the acquisition of a concession but rather these expenses represent the payment of an intangible and therefore, amortizable in a single year or proportionally for up to ten years according to Income Tax Law. In 2010, the tax court in Peru ruled in favor of Yanacocha and the tax authority appealed the issue to the judiciary. The first appellate court confirmed the ruling of the tax court in favor of Yanacocha. However, in November, 2015, a Superior Court in Peru made an appellate decision overturning the two prior findings in favor of Yanacocha. Yanacocha has appealed the Superior Court ruling to the Peru Supreme Court. The potential liability in this matter is in the form of fines and interest in an amount up to $75. While the Company has assessed that the likelihood of a ruling against Yanacocha in the Supreme Court as remote, it is not possible to fully predict the outcome of this litigation.

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PT Newmont Nusa Tenggara – 31.5% Newmont Owned

Under the Batu Hijau Contract of Work, beginning in 2006 and continuing through 2010, a portion of PTNNT’s shares were required to be offered for sale, first, to the Indonesian government or, second, to Indonesian nationals, equal to the difference between the following percentages and the percentage of shares already owned by the Indonesian government or Indonesian nationals (if such number is positive): 23% by March 31, 2006; 30% by March 31, 2007; 37% by March 31, 2008; 44% by March 31, 2009; and 51% by March 31, 2010. As PT Pukuafu Indah, an Indonesian national, owned a 20% interest in PTNNT at all relevant times, in 2006, a 3% interest was required to be offered for sale and, in each of 2007 through 2010, an additional 7% interest was required to be offered (for an aggregate 31% interest). The price at which such interests were offered for sale to the Indonesian parties was the fair market value of such interest considering PTNNT as a going concern, as agreed with the Indonesian government. Following certain disputes and an arbitration with the Indonesian government, in November and December 2009, sale agreements were concluded pursuant to which the 2006, 2007 and 2008 shares were sold to PT Multi Daerah Bersaing (“PTMDB”), the nominee of the local governments, and the 2009 shares were sold to PTMDB in February 2010, resulting in PTMDB owning a 24% interest in PTNNT.

On December 17, 2010, the Ministry of Energy & Mineral Resources, acting on behalf of the Indonesian government, accepted the offer to acquire the final 7% interest in PTNNT. Subsequently, the Indonesian government designated Pusat Investasi Pemerintah (“PIP”), an agency of the Ministry of Finance, as the entity that will buy the final stake. On May 6, 2011, PIP and the foreign shareholders entered into a definitive agreement for the sale and purchase of the final 7% divestiture stake, subject to receipt of approvals from certain Indonesian government ministries. Subsequent to signing the agreement, a disagreement arose between the Ministry of Finance and the Indonesian parliament in regard to whether parliamentary approval was needed to allow PIP to make the share purchase. In July 2012, the Constitutional Court ruled that parliament approval is required for PIP to use state funds to purchase the shares, which approval was never obtained. PIP and the foreign shareholders have not further extended the period in the definitive agreement for satisfaction of the conditions. Further disputes may arise in regard to the divestiture of the 2010 shares.

Refer to Note 1 for additional information regarding the anticipated sale of PTNNT.

NWG Investments Inc. v. Fronteer Gold Inc.

In April 2011, Newmont acquired Fronteer Gold Inc. (“Fronteer”).

Fronteer acquired NewWest Gold Corporation (“NewWest Gold”) in September 2007. At the time of that acquisition, NWG Investments Inc. (“NWG”) owned approximately 86% of NewWest Gold and an individual named Jacob Safra owned or controlled 100% of NWG. Prior to its acquisition of NewWest Gold, Fronteer entered into a June 2007 lock-up agreement with NWG providing that, among other things, NWG would support Fronteer’s acquisition of NewWest Gold. At that time, Fronteer owned approximately 47% of Aurora Energy Resources Inc. (“Aurora”), which, among other things, had a uranium exploration project in Labrador, Canada.

NWG contends that, during the negotiations leading up to the lock-up agreement, Fronteer represented to NWG, among other things, that Aurora would commence uranium mining in Labrador by 2013, that this was a firm date, that Aurora faced no current environmental issues in Labrador and that Aurora’s competitors faced delays in commencing uranium mining. NWG further contends that it entered into the lock-up agreement and agreed to support Fronteer’s acquisition of NewWest Gold in reliance upon these purported representations. On October 11, 2007, less than three weeks after the Fronteer-NewWest Gold transaction closed, a member of the Nunatsiavut Assembly introduced a motion calling for the adoption of a moratorium on uranium mining in Labrador. On April 8, 2008, the Nunatsiavut Assembly adopted a three-year moratorium on uranium mining in Labrador. NWG contends that Fronteer was aware during the negotiations of the NWG/Fronteer lock-up agreement that the Nunatsiavut Assembly planned on adopting this

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moratorium and that its adoption would preclude Aurora from commencing uranium mining by 2013, but Fronteer nonetheless fraudulently induced NWG to enter into the lock-up agreement.

On September 24, 2012, NWG served a summons and complaint on the Company, and then amended the complaint to add Newmont Canada Holdings ULC as a defendant. The complaint also named Fronteer Gold Inc. and Mark O’Dea as defendants. The complaint sought rescission of the merger between Fronteer and NewWest Gold and $750 in damages. In August 2013 the Supreme Court of New York, New York County issued an order granting the defendants’ motion to dismiss on forum non conveniens. Subsequently, NWG filed a notice of appeal of the decision and then a notice of dismissal of the appeal on March 24, 2014.

On February 26, 2014, NWG filed a lawsuit in Ontario Superior Court of Justice against Fronteer Gold Inc., Newmont Mining Corporation, Newmont Canada Holdings ULC, Newmont FH B.V. and Mark O’Dea. The Ontario complaint is based upon substantially the same allegations contained in the New York lawsuit with claims for fraudulent and negligent misrepresentation. NWG seeks disgorgement of profits since the close of the NWG deal on September 24, 2007 and damages in the amount of C$1.2 billion. Newmont, along with other defendants, served the plaintiff with its statement of defense on October 17, 2014. Newmont intends to vigorously defend this matter, but cannot reasonably predict the outcome.

Investigations

We occasionally identify or are apprised of information or allegations that certain employees, affiliates, agents or associated persons may have engaged in unlawful conduct for which we might be held responsible. We are conducting an investigation, with the assistance of outside counsel, relating to certain business activities of the Company and its affiliates and contractors in countries outside the U.S. The investigation includes a review of compliance with the requirements of the U.S. Foreign Corrupt Practices Act and other applicable laws and regulations. The Company is working with the U.S. Securities and Exchange Commission and the U.S. Department of Justice with respect to the investigation. In March 2016, the Company entered into a one-year agreement with the U.S. Securities and Exchange Commission tolling the statute of limitations relating to the investigation, and in April 2016, entered into a similar agreement with the U.S. Department of Justice. As of the filing of these financial statements, we cannot predict the outcome of these matters. Accordingly, no provision with respect to these matters has been made in our consolidated financial statements. See also Item 1A of the Company’s most recent Form 10-K, filed with the SEC on February 17, 2016 under the heading “Our business is subject to the U.S. Foreign Corrupt Practices Act and other extraterritorial and domestic anti-bribery laws, a breach or violation of which could lead to civil and criminal fines and penalties, loss of licenses or permits and other collateral consequences and reputational harm.”

Other Commitments and Contingencies

The Company has minimum royalty obligations on one of its producing mines in Nevada for the life of the mine. Amounts paid as a minimum royalty (where production royalties are less than the minimum obligation) in any year are recoverable in future years when the minimum royalty obligation is exceeded. Although the minimum royalty requirement may not be met in a particular year, the Company expects that over the mine life, gold production will be sufficient to meet the minimum royalty requirements. Royalty payments payable, net of recoverable amounts, are $28 in 2016, $30 in 2017, $30 in 2018, $33 in 2019, $35 in 2020 and $19 thereafter.

On June 25, 2009, the Company completed the acquisition of the remaining 33.33% interest in Boddington from AngloGold Ashanti Australia Limited (“AngloGold”). Consideration for the acquisition consisted of $982 and a contingent royalty capped at $100, equal to 50% of the average realized operating margin (Revenue less Costs applicable to sales on a by-product basis), if any, exceeding $600 per ounce, payable quarterly beginning in the second quarter of 2010 on one-third of gold sales from Boddington. At the acquisition date, the Company estimated the fair value of the

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contingent consideration at $62. At June 30, 2016 and December 31, 2015, the estimated fair value of the unpaid contingent consideration was approximately $12 and $10, respectively. Changes to the estimated fair value resulting from periodic revaluations are recorded to Other expense, net. This contingent royalty is capped at $100 in aggregate payments, of which $72 has been paid to date. The Company has made no payments during 2016 and 2015; however, we expect $2 to be paid in the next 12 months. The range of remaining undiscounted amounts the Company could pay is between $0 and $28.

Discontinued operations include a retained royalty obligation (“Holt”) to Holloway Mining Company. Holloway Mining Company, which owned the Holt-McDermott property, was sold to St. Andrew Goldfields Ltd. (“St. Andrew”) in 2006. In January 2016, St. Andrew was acquired by Kirkland Lake Gold Inc. In 2009, the Superior Court issued a decision finding Newmont Canada Corporation (“Newmont Canada”) liable for a sliding scale royalty on production from the Holt property, which Newmont Canada appealed. In May 2011, the Ontario Court of Appeal upheld the Superior Court ruling finding Newmont liable for the sliding scale royalty, which equals 0.013% of net smelter returns multiplied by the quarterly average gold price, minus a 0.013% of net smelter returns. There is no cap on the sliding scale royalty and it will increase or decrease with changes in gold price, discount rate and gold production scenarios. At June 30, 2016 and December 31, 2015, the estimated fair value of the Holt sliding scale royalty was $200 and $129, respectively. Changes to the estimated fair value resulting from periodic revaluations are recorded to Income (loss) from discontinued operations. During the three and six months ended June 30, 2016, the Company recorded a loss of $27 (net of a tax benefit of $12) and a loss of $53 (net of a tax benefit of $23), respectively. During the three and six months ended June 30, 2015, the Company recorded a gain of $9 (net of tax expense of $4) and a gain of $17 (net of tax expense of $8), respectively. During the six months ended June 30, 2016 and 2015, the Company paid $5 and $6, respectively, related to the royalty.

As part of its ongoing business and operations, the Company and its affiliates are required to provide surety bonds, bank letters of credit and bank guarantees as financial support for various purposes, including environmental reclamation, exploration permitting, workers compensation programs and other general corporate purposes. At June 30, 2016 and December 31, 2015, there were $2,164 and $2,060, respectively, of outstanding letters of credit, surety bonds and bank guarantees. The surety bonds, letters of credit and bank guarantees reflect fair value as a condition of their underlying purpose and are subject to fees competitively determined in the market place. The obligations associated with these instruments are generally related to performance requirements that the Company addresses through its ongoing operations. As the specific requirements are met, the beneficiary of the associated instrument cancels and/or returns the instrument to the issuing entity. Certain of these instruments are associated with operating sites with long-lived assets and will remain outstanding until closure. Generally, bonding requirements associated with environmental regulation are becoming more restrictive. However, the Company believes it is in compliance with all applicable bonding obligations and will be able to satisfy future bonding requirements through existing or alternative means, as they arise.

Newmont is from time to time involved in various legal proceedings related to its business. Except in the above described proceedings, management does not believe that adverse decisions in any pending or threatened proceeding or that amounts that may be required to be paid by reason thereof will have a material adverse effect on the Company’s financial condition or results of operations.

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ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (dollars in millions, except per share, per ounce and per pound amounts)

The following Management’s Discussion and Analysis (“MD&A”) provides information that management believes is relevant to an assessment and understanding of the consolidated financial condition and results of operations of Newmont Mining Corporation and its subsidiaries (collectively, “Newmont,” the “Company,” “our” and “we”). We use certain non-GAAP financial measures in our MD&A. For a detailed description of each of the non-GAAP measures used in this MD&A, please see the discussion under “Non-GAAP Financial Measures” beginning on page 70. References to “A$” refers to Australian currency.

This item should be read in conjunction with our interim unaudited Condensed Consolidated Financial Statements and the notes thereto included in this quarterly report. Additionally, the following discussion and analysis should be read in conjunction with Management’s Discussion and Analysis of Consolidated Financial Condition and Results of Operations and the consolidated financial statements included in Part II of our Annual Report on Form 10-K for the year ended December 31, 2015 filed February 17, 2016.

Overview

Newmont is one of the world’s largest gold producers and is the only gold company included in the S&P 500 Index and Fortune 500. We have been included in the Dow Jones Sustainability Index-World for nine consecutive years and have adopted the World Gold Council’s Conflict-Free Gold Policy. We are also engaged in the exploration for and acquisition of gold and copper properties. We have significant operations and/or assets in the United States (“U.S.”), Australia, Peru, Indonesia, Ghana and Suriname.

On June 30, 2016, the Company, through its subsidiaries, entered into binding agreements with PT Amman Mineral Internasional (“PTAMI”) to sell, in effect, its 48.5% economic interest in PT Newmont Nusa Tenggara (“PTNNT”), which operates the Batu Hijau copper and gold mine in Indonesia. The sales proceeds to be received for the Company’s 48.5% economic interest in PTNNT include $920 in cash to be received at closing, as well as contingent payments totaling up to $403. For further information, see Note 1 to the Condensed Consolidated Financial Statements.

We continue to focus on improving safety and efficiency at our operations, maintaining leading environmental, social and governance practices, and building a stronger portfolio of longer-life, lower cost mines to generate the financial flexibility we need to fund our best projects, reduce debt, and return cash to shareholders. As part of these efforts, we launched the Full Potential program (“Full Potential”) in 2013 which continues to deliver results in the current year. Full Potential is designed to leverage our industry experience and discipline to accelerate the delivery of business improvement opportunities across our operations and support areas, resulting in improved levels of operating cash flow.

Highlights for the three and six months ended June 30, 2016 are included below and discussed further in Results of Consolidated Operations.

Operating highlights

Net income (loss) attributable to Newmont stockholders from continuing operations of $50 and $128 for the three and six months ended June 30, 2016, respectively; Adjusted net income of $231 and $413 for the three and six months ended June 30, 2016, respectively (see “Non-GAAP Financial Measures” on page 70);

Adjusted EBITDA of $804 and $1,607 for the three and six months ended June 30, 2016, respectively (see “Non-GAAP Financial Measures” on page 70);

Net cash provided by continuing operating activities of $1,304 and Free Cash Flow of $713 during the six months ended June 30, 2016 (see “Non-GAAP Financial Measures” on page 70);

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Consolidated gold production of 1,457,000 ounces (1,285,000 attributable ounces) and 2,873,000 ounces 2,514,000 attributable ounces) for the three and six months ended June 30, 2016, respectively;

Consolidated copper production of 144 million pounds (85 million attributable pounds) and 285 million pounds (168 million attributable pounds) for the three and six months ended June 30, 2016, respectively;

Costs applicable to sales of $1,059 and $2,140 for the three and six months ended June 30, 2016, respectively;

Gold costs applicable to sales per ounce of $637 and $638 for the three and six months ended June 30, 2016, respectively; Copper costs applicable to sales per pound of $1.21 and $1.12 for the three and six months ended June 30, 2016, respectively (see “Non-GAAP Financial Measures” on page 70);

Gold all-in sustaining costs per ounce of $876 and $852 for the three and six months ended June 30, 2016, respectively; Copper all-in sustaining costs per pound of $1.53 and $1.42 for the three and six months ended June 30, 2016, respectively (see “Non-GAAP Financial Measures” on page 70);

Cash dividends declared per common share of $0.025 and $0.050 for the three and six months ended June 30, 2016, respectively.

Our global project pipeline

Projects included in our global pipeline comprise an important part of the Company’s growth strategy and reflect opportunities throughout the development cycle. The most advanced projects, including early stage development and projects in or near the Execution phase, are described below. The exploration, construction and execution of these projects may require significant funding to complete.

Merian, Suriname. On July 29, 2014, the Board of Directors of Newmont approved full funding for the development of the Merian project in Suriname and construction began in August 2014. Following the project approval by Newmont, the Government of Suriname granted the Right of Exploitation on August 22, 2014. The Government of Suriname opted for a 25% ownership in Merian and made their earn-in payments. The project allows Newmont to pursue a new district with upside potential and the opportunity to grow and extend the operating life of the South American region. We expect Merian to reach commercial production by the fourth quarter of 2016. Upon reaching commercial production, we expect average estimated gold production (on a 100% basis) of 400,000 to 500,000 ounces per year for the first five years. Total capital spend on the project is expected to range from $575 to $625 on an attributable basis. As of June 30, 2016, total capital costs were $536, of which $45 related to the second quarter on an attributable basis. At December 31, 2015, we reported 110.6 million tons of probable reserves, grading 0.035 ounces per ton for 3.8 million ounces of gold reserves on an attributable basis at Merian.

Long Canyon, Nevada. The Board of Directors approved full funding for the first phase of developing the Long Canyon project in the second quarter of 2015. The Environmental Impact Statement Record of Decision was issued by the Bureau of Land Management on April 7, 2015. The project is now under construction and is expected to achieve commercial production in the first quarter of 2017. This first phase of development consists of an open pit mine and heap leach operation with average estimated production between 100,000 and 150,000 ounces per year over an eight year mine life. Total capital costs of the project are estimated between $250 and $300. As of June 30, 2016, total capital costs were $208 of which $37 related to the second quarter. We are currently assessing mining and processing options and completing a three-year infill drilling program to inform our approach to Phase 2. At December 31, 2015, we reported 18 million tons of probable reserves, grading 0.067 ounce per ton for 1.2 million ounces of gold reserves at Long Canyon.

Tanami Expansion, Australia. The Board of Directors approved full funding of the Tanami Expansion project on October 28, 2015. The goal of the Tanami Expansion project is to increase production and lower all-in sustaining costs per ounce at the existing Tanami operation. Incremental improvements are driven by bringing ounces forward, mining additional ounces at depth and leveraging the fixed costs of the mine and processing facilities. The scope for this project includes a ventilation upgrade, additional mining equipment, additional mine access and increasing process plant

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capacity and recovery. We expect the Tanami Expansion to reach commercial production by mid-2017. Total capital costs for Newmont to complete the Tanami expansion project are estimated to be between $100 and $120, which will enable Tanami production of between 425,000 and 475,000 gold ounces for the first five years following the expansion at lower costs and increase the mine life by three years. As of June 30, 2016, total capital costs were $43 of which $13 related to the second quarter of 2016.

Cripple Creek & Victor (“CC&V”) Expansion, Colorado. An expansion project at CC&V, which will extend CC&V’s estimated mine life to at least 2026, includes the construction of a new leach pad, mill and recovery plant. The mill was mechanically completed in the first quarter of 2015. Total capital costs for Newmont to complete the CC&V expansion project are estimated to be approximately $185. As of June 30, 2016, total capital costs for Newmont were $87, of which $13 related to the second quarter of 2016. Mill commissioning and ramp up of production will continue through 2016. The new leach pad and half of the recovery plant reached commercial production in the first quarter of 2016.

NW Exodus. Nevada. In June 2016, Newmont approved the Northwest Exodus Underground project. The Northwest Exodus gold deposit is located in close proximity to the Exodus deposit in Newmont’s Carlin North Area, Eureka County, Nevada, within the mine plan (Genesis-Blue Star Plan of Operations). The Project expands the existing Exodus Underground mine infrastructure. Incremental gold production will average between 50,000 and 75,000 ounces per year for the first five years. The NW Exodus project extends the Exodus mine life by seven years and reduces Carlin’s all-in sustaining cost (see “Non-GAAP Financial Measures” on page 70) by an average of $25 per ounce for the first 5 years. First gold production is expected to occur in the third quarter of 2016. Total capital costs for Newmont to complete the NW Exodus project are estimated to be between $50 and $75. As of June 30, 2016, total capital costs for Newmont were $20, of which $4 related to the second quarter of 2016.

Subika Underground, Ghana. Subika Underground is in the feasibility stage of development as work continues to optimize the mine plan and reduce costs. The project would increase profitable production by 150,000 to 200,000 ounces of gold per year and an investment decision is expected in late 2016.

Quecher Main, Peru. Quecher Main is a potential brownfield development within the existing footprint of Yanacocha. It is an oxide deposit that would extend the life of the Yanacocha operation to 2024. As a result, Yanacocha would produce an average of 200,000 ounces of gold per year beginning in 2020. The project is currently in the feasibility stage of development.

Ahafo Mill Expansion, Ghana. We continue to evaluate development alternatives for this project, currently in the feasibility stage. The project would increase profitable production by 75,000 to 100,000 ounces (first five year average) while lowering costs and off-setting the impacts of lower grades and harder ore.

We manage our wider project portfolio to maintain flexibility to address the development risks associated with our projects including permitting, local community and government support, engineering and procurement availability, technical issues, escalating costs and other associated risks that could adversely impact the timing and costs of certain opportunities.

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Selected Financial and Operating Results


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2016		2015		2016		2015
Sales	$	2,038	$	1,908	$	4,070	$	3,880
Gold	$	1,803	$	1,574	$	3,497	$	3,219
Copper	$	235	$	334	$	573	$	661
Income (loss) from continuing operations	$	89	$	139	$	250	$	360
Net income (loss)	$	62	$	148	$	197	$	377
Net income (loss) attributable to Newmont stockholders	$	23	$	72	$	75	$	255
Per common share, basic:
Income (loss) from continuing operations attributable to Newmont stockholders	$	0.09	$	0.13	$	0.24	$	0.48
Income (loss) attributable to Newmont stockholders	$	0.04	$	0.14	$	0.14	$	0.51
Adjusted net income (loss) (1)	$	231	$	131	$	413	$	361
Adjusted net income (loss) per share, basic (1)	$	0.44	$	0.26	$	0.78	$	0.72
Earnings before interest, taxes and depreciation and amortization (1)	$	789	$	656	$	1,680	$	1,453
Adjusted earnings before interest, taxes and depreciation and amortization (1)	$	804	$	692	$	1,607	$	1,508
Net cash provided by operating activities					$	1,299	$	1,063
Free Cash Flow (1)					$	713	$	463
Consolidated gold ounces (thousands):
Produced		1,457		1,402		2,873		2,764
Sold (2)		1,429		1,337		2,850		2,704
Consolidated copper pounds (millions):
Produced		144		157		285		296
Sold		122		139		289		278
Average realized price:
Gold (per ounce)	$	1,260	$	1,179	$	1,226	$	1,192
Copper (per pound)	$	1.94	$	2.41	$	1.98	$	2.37
Consolidated costs applicable to sales: (1)(3)
Gold (per ounce)	$	637	$	642	$	638	$	628
Copper (per pound)	$	1.21	$	1.21	$	1.12	$	1.28
All-in sustaining costs: (1)
Gold (per ounce)	$	876	$	909	$	852	$	879
Copper (per pound)	$	1.53	$	1.61	$	1.42	$	1.67

⁽¹⁾

See “Non-GAAP Financial Measures” beginning on page 70.

⁽²⁾

Excludes development ounces.

⁽³⁾

Excludes Depreciation and amortization and Reclamation and remediation.

Consolidated Financial Results

Net income (loss) attributable to Newmont stockholders for the three months ended June 30, 2016 was $23 ($0.04 per share) compared to income of $72 ($0.14 per share) for the three months ended June 30, 2015. Results for the three months ended June 30, 2016 compared to the same period in 2015 were impacted by higher deferred income taxes, higher operating costs attributable to higher gold sales volumes and lower realized copper prices and sales volumes, partially offset by higher realized gold prices and sales volumes. Net income (loss) attributable to Newmont stockholders for the six months ended June 30, 2016 was $75 ($0.14 per share) compared to income of $255 ($0.51 per share) for the six months ended June 30, 2015. Results for the six months ended June 30, 2016 compared to the same period in 2015 were impacted by higher deferred income taxes, higher operating costs attributable to higher gold sales volumes and lower realized copper prices, partially offset by higher gold sales volumes and prices and the sale of the Company’s investment in Regis Resources Ltd.

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Gold sales increased 15% and 9% during the three and six months ended June 30, 2016 compared to the same periods in 2015, respectively, primarily due to the addition of CC&V, higher average realized prices and higher sales volumes at existing operations, partially offset by the sale of Waihi. The following analysis summarizes consolidated gold sales:


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2016		2015		2016		2015
Consolidated gold sales:
Gross before provisional pricing	$	1,808	$	1,588	$	3,493	$	3,252
Provisional pricing mark-to-market		10		1		40		—
Gross after provisional pricing		1,818		1,589		3,533		3,252
Treatment and refining charges		(15)		(15)		(36)		(33)
Net	$	1,803	$	1,574	$	3,497	$	3,219
Consolidated gold ounces sold (thousands):		1,429		1,337		2,850		2,704
Average realized gold price (per ounce):
Gross before provisional pricing	$	1,264	$	1,190	$	1,225	$	1,204
Provisional pricing mark-to-market		7		1		14		—
Gross after provisional pricing		1,271		1,191		1,239		1,204
Treatment and refining charges		(11)		(12)		(13)		(12)
Net	$	1,260	$	1,179	$	1,226	$	1,192

The change in consolidated gold sales is due to:


	Three Months Ended		Six Months Ended
	June 30,		June 30,
	2016 vs. 2015		2016 vs. 2015
Change in consolidated ounces sold	$	112	$	178
Change in average realized gold price		117		103
Change in treatment and refining charges		—		(3)
	$	229	$	278

Copper sales decreased 30% and 13% during the three and six months ended June 30, 2016 compared to the same periods in 2015, respectively. For the three months ended June 30, 2016 compared to the same period in 2015, the decrease is primarily due to lower average realized prices and lower sales volumes. For the six months ended June 30, 2016 compared to the same period in 2015, the decrease is primarily due to lower average realized prices, partially offset by higher sales volumes. The following analysis summarizes consolidated copper sales:


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2016		2015		2016		2015
Consolidated copper sales:
Gross before provisional pricing	$	266	$	377	$	622	$	747
Provisional pricing mark-to-market		(8)		(18)		6		(34)
Gross after provisional pricing		258		359		628		713
Treatment and refining charges		(23)		(25)		(55)		(52)
Net	$	235	$	334	$	573	$	661
Consolidated copper pounds sold (millions):		122		139		289		278
Average realized copper price (per pound):
Gross before provisional pricing	$	2.18	$	2.71	$	2.15	$	2.68
Provisional pricing mark-to-market		(0.06)		(0.13)		0.02		(0.12)
Gross after provisional pricing		2.12		2.58		2.17		2.56
Treatment and refining charges		(0.18)		(0.17)		(0.19)		(0.19)
Net	$	1.94	$	2.41	$	1.98	$	2.37

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The change in consolidated copper sales is due to:


	Three Months Ended		Six Months Ended
	June 30,		June 30,
	2016 vs. 2015		2016 vs. 2015
Change in consolidated pounds sold	$	(45)	$	28
Change in average realized copper price		(56)		(113)
Change in treatment and refining charges		2		(3)
	$	(99)	$	(88)

The following is a summary of consolidated gold and copper sales, net:


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2016		2015		2016		2015
Gold
North America:
Carlin	$	256	$	243	$	502	$	519
Phoenix		62		50		126		111
Twin Creeks		144		150		303		299
CC&V (1)		144		—		209		—
		606		443		1,140		929
South America:
Yanacocha		194		242		405		543

Asia Pacific:
Boddington		250		202		454		441
Tanami		179		138		299		258
Waihi (2)		—		39		—		89
Kalgoorlie		122		100		228		174
Batu Hijau (3)		191		178		474		292
		742		657		1,455		1,254
Africa:
Ahafo		115		87		216		208
Akyem		146		145		281		285
		261		232		497		493
		1,803		1,574		3,497		3,219
Copper
North America:
Phoenix		22		24		43		58
Asia Pacific:
Boddington		35		41		65		88
Batu Hijau (3)		178		269		465		515
		213		310		530		603
		235		334		573		661
	$	2,038	$	1,908	$	4,070	$	3,880

⁽¹⁾

On August 3, 2015, the Company acquired the CC&V gold mining business.

⁽²⁾

On October 29, 2015, the Company sold the Waihi mine.

⁽³⁾

On June 30, 2016 we announced the anticipated sale of Batu Hijau. For further information, see Note 1 to the Condensed Consolidated Financial Statements.

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The following is a summary of Costs applicable to sales and Depreciation and amortization:


	Costs Applicable				Depreciation and				Costs Applicable				Depreciation and
	to Sales				Amortization				to Sales				Amortization
	Three Months Ended				Three Months Ended				Six Months Ended				Six Months Ended
	June 30,				June 30,				June 30,				June 30,
	2016		2015		2016		2015		2016		2015		2016		2015
Gold
North America:
Carlin	$	184	$	187	$	43	$	46	$	373	$	365	$	92	$	91
Phoenix		39		32		12		8		88		73		27		18
Twin Creeks		58		65		13		12		118		124		26		25
CC&V (1)		58		—		28		—		91		—		46		—
		339		284		96		66		670		562		191		134
South America:
Yanacocha		120		130		59		66		248		245		128		137
Merian		—		—		—		—		—		—		1		—
		120		130		59		66		248		245		129		137

Asia Pacific:
Boddington		141		122		29		24		252		279		52		54
Tanami		64		59		23		22		123		117		42		41
Waihi (2)		—		18		—		3		—		37		—		8
Kalgoorlie		67		78		4		6		132		138		9		11
Batu Hijau (3)		65		73		14		14		165		124		34		23
		337		350		70		69		672		695		137		137
Africa:
Ahafo		60		43		17		13		117		99		32		28
Akyem		56		51		32		24		111		97		61		46
		116		94		49		37		228		196		93		74
		912		858		274		238		1,818		1,698		550		482
Copper
North America:
Phoenix		22		17		7		3		44		42		12		9
Asia Pacific:
Boddington		33		29		6		5		56		68		11		12
Batu Hijau (3)		92		123		19		21		222		246		45		42
		125		152		25		26		278		314		56		54
		147		169		32		29		322		356		68		63
Other
Corporate and other		—		—		8		9		—		—		18		20
	$	1,059	$	1,027	$	314	$	276	$	2,140	$	2,054	$	636	$	565

⁽¹⁾

On August 3, 2015, the Company acquired the CC&V gold mining business.

⁽²⁾

On October 29, 2015, the Company sold the Waihi mine.

⁽³⁾

On June 30, 2016 we announced the anticipated sale of Batu Hijau. For further information, see Note 1 to the Condensed Consolidated Financial Statements.

Costs applicable to sales increased $32 and $86 during the three and six months ended June 30, 2016 compared to the same periods in 2015, respectively, due to increases in Costs applicable to sales for gold of $54 and $120, respectively, partially offset by decreases in Costs applicable to sales for copper of $22 and $34, respectively. Costs applicable to sales for gold increased during the three and six months ended June 30, 2016 compared to the same periods in 2015 primarily due to higher sales volumes, the addition of CC&V, higher gold production, higher stockpile and leach pad inventory adjustments and higher co-product allocation of costs to gold due to changes in the gold and copper revenue percentages, partially offset by the sale of Waihi, lower oil prices and a favorable Australian dollar/U.S. dollar exchange rate. Costs applicable to sales for copper decreased during the three and six months ended June 30, 2016 compared to the same periods in 2015 primarily due to lower copper production, a lower co-product allocation of costs to copper due to changes in the gold and copper revenue percentages, lower oil prices, a favorable Australian dollar/U.S.

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dollar exchange rate and lower sales volumes for the three-month comparison. For the six-month comparison, the decrease in Costs applicable to sales for copper was partially offset by higher sales volumes. For discussion regarding variations in operations, see Results of Consolidated Operations.

Depreciation and amortization increased $38 and $71 during the three and six months ended June 30, 2016 compared to the same periods in 2015, respectively. Depreciation and amortization for gold increased during the three and six months ended June 30, 2016 compared to the same periods in 2015 primarily due to higher sales volumes, higher stockpile and leach pad inventory adjustments and the addition of CC&V, partially offset by the sale of Waihi. Depreciation and amortization for copper remained relatively flat during the three and six months ended June 30, 2016 compared to the same periods in 2015.

Other income, net increased by $23 during the three months ended June 30, 2016 compared to the same period in 2015 primarily due to lower impairment charges on investments. Other income, net increased by $110 during the six months ended June 30, 2016 compared to the same period in 2015 primarily due to a gain of $103 on the sale of the Company’s investment in Regis Resources Ltd. in the current year and lower impairment charges on investments, partially offset by foreign currency exchange losses in 2016 and a gain on the sale of Hemlo mineral rights recognized in the first quarter of 2015.

The Company’s Income and mining tax expense (benefit) consisted of:


	Three Months Ended June 30,
	2016				2015				Variance
Income (loss) before income and mining tax and other items			$	404			$	298

Tax at statutory rate	35	%	$	141	35	%	$	104
Reconciling items:
Percentage depletion (1)	2	%		7	(6)	%		(19)	8	%
Change in valuation allowance on deferred tax assets	36	%		146	13	%		40	23	%
Mining and other taxes	1	%		6	5	%		16	(4)	%
Effect of foreign earnings, net of credits	1	%		6	2	%		5	(1)	%
Other (1)	1	%		4	2	%		6	(1)	%
Income and mining tax expense	76	%	$	310	51	%	$	152	25	%


	Six Months Ended June 30,
	2016				2015				Variance
Income (loss) before income and mining tax and other items			$	894			$	721

Tax at statutory rate	35	%	$	313	35	%	$	252
Reconciling items:
Percentage depletion (1)	(4)	%		(36)	(5)	%		(34)	1	%
Change in valuation allowance on deferred tax assets	38	%		340	12	%		84	26	%
Mining and other taxes	3	%		29	3	%		24	0	%
Tax impact on sale of assets	(4)	%		(35)	—	%		—	(4)	%
Effect of foreign earnings, net of credits	2	%		17	1	%		8	1	%
Other (1)	1	%		6	2	%		11	(1)	%
Income and mining tax expense	71	%	$	634	48	%	$	345	23	%

⁽¹⁾

Includes the reduction to percentage depletion and the domestic production deduction from the filing of the 2015 tax return during the quarter.

During the three months ended June 30, 2016, income and mining tax expense was $310, resulting in an effective tax rate of 76%. Income and mining tax expense during the three months ended June 30, 2015 was $152, for an effective

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tax rate of 51%. The Company’s effective tax rate is driven by a number of factors as illustrated in the table above. The benefit for percentage depletion decreased for the quarter due to the filing of the 2015 tax return which reflected a reduction in claimed percentage depletion. In addition, the Company increased its valuation allowance for renewed tax credits resulting from the carryback of 2015 taxable losses to a year with taxable income.

During the six months ended June 30, 2016, income and mining tax expense was $634, resulting in an effective tax rate of 71%. Income and mining tax expense during the six months ended 2015 was $345, for an effective tax rate of 48%. The Company’s effective tax rate is driven by a number of factors as illustrated in the table above. In 2016, the Company increased its valuation allowance for tax credits generated by a restructuring implemented for tax planning purposes and by carrying back taxable losses to a year with taxable income. Finally, no tax expense was recognized on the sale of the Company’s interest in Regis Resources as this sale resulted in a tax loss.

A valuation allowance is provided for those deferred tax assets for which it is more likely than not that the related benefits will not be realized. In determining the amount of the valuation allowance, each quarter the Company considers future reversals of existing taxable temporary differences, estimated future taxable income and taxable income in prior carryback year(s), as well as feasible tax planning strategies in each jurisdiction to determine if the deferred tax assets are realizable. If it is determined we will not realize all or a portion of its deferred tax assets, we will place or increase a valuation allowance. Conversely, if we determine that we will ultimately be able to realize all or a portion of the related benefits for which a valuation allowance has been provided, all or a portion of the related valuation allowance will be reduced. There are a number of risk factors that could impact the Company’s ability to realize the deferred tax assets. See Note 2 to the Condensed Consolidated Financial Statements.

There are a number of factors that can potentially impact the Company’s effective tax, including the geographic distribution of income, the non-recognition of tax assets, percentage depletion, changes in tax laws and the impact of specific transactions and assessments. For a complete discussion of the factors that influence our effective tax rate, see Management’s Discussion and Analysis of Consolidated Financial Condition and Results of Operations for the year ended December 31, 2015 filed February 17, 2016 on Form 10-K.

Due to the factors discussed above and the sensitivity of the Company’s income tax expense and effective tax rate to these factors, it is expected that the effective tax rate will fluctuate, sometimes significantly, in future periods.

Net loss (income) attributable to noncontrolling interests during the three and six months ended June 30, 2016 was income of $39 and $122, respectively, compared to $76 and $122 in the same periods of 2015, respectively. The decrease in net income attributable to noncontrolling interests during the three months ended June 30, 2016 is a result of decreased earnings at Batu Hijau due to export quota limitations and Yanacocha from additional transitional ore processed.

Income (loss) from discontinued operations includes a retained royalty obligation (“Holt”) from Holloway Mining Company. During the three and six months ended June 30, 2016, the increase in the Holt property royalty obligation is due to an increase in gold price and decreases in discount rates. During the three and six months ended June 30, 2015, the decrease in the Holt property royalty obligation was due to a decrease in gold price and increases in discount rates. For further information regarding the Holt property royalty, see Note 22 to our Condensed Consolidated Financial Statements.

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Results of Consolidated Operations


	Gold or Copper		Costs Applicable				Depreciation and				All-In Sustaining
	Produced		to Sales(1)				Amortization				Costs(2)
	2016	2015	2016		2015		2016		2015		2016		2015
Three Months Ended June 30,
Gold	(ounces in thousands)		($ per ounce sold)				($ per ounce sold)				($ per ounce sold)
North America	477	377	$	700	$	764	$	201	$	177	$	884	$	973
South America (3)	156	216		773		635		399		337		1,260		1,000
Asia Pacific	619	614		577		618		123		127		706		771
Africa	205	195		560		488		234		192		733		711
Total/Weighted-Average	1,457	1,402	$	637	$	642	$	197	$	185	$	876	$	909
Attributable to Newmont (4)	1,285	1,203

Copper	(pounds in millions)		($ per pound sold)				($ per pound sold)				($ per pound sold)
North America	10	12	$	2.02	$	1.83	$	0.60	$	0.39	$	2.27	$	2.44
Asia Pacific	134	145		1.13		1.17		0.23		0.20		1.46		1.55
Total/Weighted-Average	144	157	$	1.21	$	1.21	$	0.26	$	0.21	$	1.53	$	1.61
Attributable to Newmont	85	92

Copper	(tonnes in thousands)
North America	5	6
Asia Pacific	61	66
Total/Weighted-Average	66	72
Attributable to Newmont	38	42


	Gold or Copper		Costs Applicable				Depreciation and				All-In Sustaining
	Produced		to Sales(1)				Amortization				Costs(2)
	2016	2015	2016		2015		2016		2015		2016		2015
Six Months Ended June 30,
Gold	(ounces in thousands)		($ per ounce sold)				($ per ounce sold)				($ per ounce sold)
North America	933	782	$	716	$	726	$	205	$	174	$	880	$	931
South America (3)	336	464		743		543		405		316		1,123		844
Asia Pacific	1,197	1,107		573		648		122		134		695		796
Africa	407	411		558		481		227		181		716		672
Total/Weighted-Average	2,873	2,764	$	638	$	628	$	199	$	186	$	852	$	879
Attributable to Newmont (4)	2,514	2,389

Copper	(pounds in millions)		($ per pound sold)				($ per pound sold)				($ per pound sold)
North America	21	24	$	2.07	$	1.89	$	0.56	$	0.42	$	2.38	$	2.32
Asia Pacific	264	272		1.04		1.23		0.21		0.21		1.34		1.61
Total/Weighted-Average	285	296	$	1.12	$	1.28	$	0.23	$	0.23	$	1.42	$	1.67
Attributable to Newmont	168	175

Copper	(tonnes in thousands)
North America	10	11
Asia Pacific	120	123
Total/Weighted-Average	130	134
Attributable to Newmont	76	79

⁽¹⁾

Excludes Depreciation and amortization and Reclamation and remediation.

⁽²⁾

All-In Sustaining Costs is a non-GAAP financial measure. See Non-GAAP Financial Measures beginning on page 70.

⁽³⁾

All-In Sustaining Costs and Depreciation and Amortization include expense for other South America projects.

⁽⁴⁾

For the three months ended June 30, 2016 and 2015, amounts exclude 17 and 18 ounces, respectively, from our interest in La Zanja and 15 ounces in 2015 from our interest in Duketon. For the six months ended June 30, 2016 and 2015, amounts exclude 33 and 32 ounces, respectively, from our interest in La Zanja and 11 and 28 ounces, respectively, from our interest in Duketon. In March 2016, the Company sold its investment in Regis Resources Ltd., which operates the Duketon project.

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Three months ended June 30, 2016 compared to 2015

Consolidated gold production increased 4% primarily due to higher production at our Africa and Asia Pacific operations and from the acquisition of CC&V included in our North America operations, partially offset by lower production from South America and from the sale of Waihi in our Asia Pacific region. Consolidated copper production decreased 8% primarily due to lower ore grade milled at our copper producing operations.

Costs applicable to sales per consolidated gold ounce sold decreased 1% primarily due to higher production, a favorable Australian dollar foreign currency exchange rate and lower oil prices, mostly offset by higher direct operating costs, higher stockpile and leach pad inventory adjustments and a higher co-product allocation of costs to gold due to changes in the gold and copper revenue percentages. Costs applicable to sales per consolidated copper pound sold was in line with the prior year period as a favorable Australian dollar foreign currency exchange rate, lower oil prices and a lower co-product allocation of costs to copper due to changes in the gold and copper revenue percentages mostly offset lower production.

Depreciation and amortization per consolidated gold ounce sold increased 6% primarily due to capital additions, higher unit rates and a higher co-product allocation of costs to gold due to changes in the gold and copper revenue percentages, partially offset by higher production. Depreciation and amortization per consolidated copper pound sold increased 24% primarily due to capital additions, higher unit rates, and lower production, partially offset by a lower co-product allocation of costs to copper due to changes in the gold and copper revenue percentages.

All-in sustaining costs per consolidated gold ounce sold decreased 4% primarily due to higher production and lower sustaining capital spend. All-in sustaining costs per consolidated copper pound sold decreased 5% primarily due to lower sustaining capital spend, partially offset by lower production.

Six months ended June 30, 2016 compared to 2015

Consolidated gold production increased 4% due to higher production at our North America operations from the acquisition of CC&V in addition to higher production from our Asia Pacific operations, partially offset by lower production from our South America and Africa operations and from the sale of Waihi in our Asia Pacific region. Consolidated copper production decreased 4% due to lower ore grade milled at our copper producing operations.

Costs applicable to sales per consolidated gold ounce sold increased 2% primarily due to higher direct operating costs, higher leach pad inventory adjustments and a higher co-product allocation of costs to gold due to changes in the gold and copper revenue percentages, partially offset by higher production, lower stockpile inventory adjustments, a favorable Australian dollar foreign currency exchange rate and lower oil prices. Costs applicable to sales per consolidated copper pound sold decreased 13% primarily due to lower stockpile inventory adjustments, a favorable Australian dollar foreign currency exchange rate, lower oil prices and a lower co-product allocation of costs to copper due to changes in the gold and copper revenue percentages, partially offset by lower production.

Depreciation and amortization per consolidated gold ounce sold increased 7% primarily due to higher production, partially offset by higher leach pad inventory adjustments and a higher co-product allocation of costs to gold due to changes in the gold and copper revenue percentages. Depreciation and amortization per consolidated copper pound sold was in line with the prior year period as lower unit rates and a lower co-product allocation of costs to copper due to changes in the gold and copper revenue percentages were mostly offset with lower production.

All-in sustaining costs per consolidated gold ounce sold decreased 3% primarily due to higher production and lower sustaining capital spend. All-in sustaining costs per consolidated copper pound sold decreased 15% primarily due to lower costs applicable to sales and lower sustaining capital spend, partially offset by lower production.

Table of Contents

North America Operations


	Gold or Copper		Costs Applicable				Depreciation and				All-In Sustaining
	Produced		to Sales(1)				Amortization				Costs(2)
	2016	2015	2016		2015		2016		2015		2016		2015
Three Months Ended June 30,
Gold	(ounces in thousands)		($ per ounce sold)				($ per ounce sold)				($ per ounce sold)
Carlin	204	200	$	900	$	914	$	215	$	227	$	1,128	$	1,137
Phoenix	45	52		772		765		240		181		940		930
Twin Creeks	114	125		509		521		112		95		635		648
CC&V (3)	114	—		506		—		246		—		548		—
Total/Weighted-Average	477	377	$	700	$	764	$	201	$	177	$	884	$	973

Copper	(pounds in millions)		($ per pound sold)				($ per pound sold)				($ per pound sold)
Phoenix	10	12	$	2.02	$	1.83	$	0.60	$	0.39	$	2.27	$	2.44

Copper	(tonnes in thousands)
Phoenix	5	6


	Gold or Copper		Costs Applicable				Depreciation and				All-In Sustaining
	Produced		to Sales(1)				Amortization				Costs(2)
	2016	2015	2016		2015		2016		2015		2016		2015
Six Months Ended June 30,
Gold	(ounces in thousands)		($ per ounce sold)				($ per ounce sold)				($ per ounce sold)
Carlin	410	429	$	906	$	846	$	225	$	212	$	1,107	$	1,051
Phoenix	101	107		848		767		264		191		990		937
Twin Creeks	250	246		472		501		103		103		566		652
CC&V (3)	172	—		535		—		271		—		588		—
Total/Weighted-Average	933	782	$	716	$	726	$	205	$	174	$	880	$	931

Copper	(pounds in millions)		($ per pound sold)				($ per pound sold)				($ per pound sold)
Phoenix	21	24	$	2.07	$	1.89	$	0.56	$	0.42	$	2.38	$	2.32

Copper	(tonnes in thousands)
Phoenix	10	11

⁽¹⁾

Excludes Depreciation and amortization and Reclamation and remediation.

⁽²⁾

All-In Sustaining Costs is a non-GAAP financial measure. See Non-GAAP Financial Measures beginning on page 70.

⁽³⁾

On August 3, 2015, the Company acquired the CC&V gold mining operation.

Three months ended June 30, 2016 compared to 2015

Carlin, USA. Gold ounces produced increased 2% primarily due to higher throughput and ore grade milled at Mill 5 and higher heap leach recoveries at Emigrant, partially offset by lower throughput and ore grade milled at Mill 6. Costs applicable to sales per ounce sold decreased 2% primarily due to lower oil prices, higher production and lower leach pad inventory adjustments, partially offset by higher stockpile inventory adjustments and higher underground operating costs at Leeville. Depreciation and amortization per ounce sold decreased 5% primarily due to lower amortization rates. All-in sustaining costs per ounce sold were in line with the prior year period.

Phoenix, USA. Gold ounces produced decreased 13% primarily due to lower ore grade milled and associated lower recovery. Copper pounds produced decreased 17% primarily due to lower ore grade milled. Costs applicable to sales per ounce sold were in line with the prior year period. Costs applicable to sales per pound sold increased 10% primarily due to higher leaching costs. Depreciation and amortization increased 33% per ounce sold and 54% per pound sold primarily due to higher amortization rates. All-in sustaining costs per ounce sold were in line with the prior year period. All-in sustaining costs per pound sold decreased 7% primarily due to lower treatment and refining costs, partially offset by higher costs applicable to sales.

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Twin Creeks, USA. Gold ounces produced decreased 9% primarily due to lower throughput and lower ore grade milled at the Juniper mill. Costs applicable to sales per ounce sold decreased 2% due to lower direct operating costs, partially offset by higher leach pad inventory adjustments and lower production. Depreciation and amortization per ounce sold increased 18% due to capital additions, lower production and higher leach pad inventory adjustments. All-in sustaining costs per ounce sold decreased 2% due to lower costs applicable to sales, partially offset by lower production.

CC&V, USA. We purchased 100% of the Cripple Creek & Victor gold mining business in Colorado from AngloGold Ashanti Limited on August 3, 2015.

Six months ended June 30, 2016 compared to 2015

Carlin, USA. Gold ounces produced decreased 4% primarily due to lower throughput and recovery at Mill 6 and lower heap leach recoveries at North Area Leach. Costs applicable to sales per ounce sold increased 7% due to higher waste tons mined as a result of a stripping campaign, lower production, higher underground operating costs at Leeville and higher stockpile inventory adjustments, partially offset by lower leach pad inventory adjustments. Depreciation and amortization per ounce sold increased 6% due to lower production and capital additions, partially offset by lower leach pad inventory adjustments. All-in sustaining costs per ounce sold increased 5% due to higher costs applicable to sales and lower production, partially offset by lower sustaining capital spend.

Phoenix, USA. Gold and copper production decreased 6% and 13%, respectively, primarily due to lower ore grade milled and lower recovery. Costs applicable to sales increased 11% per ounce sold and 10% per pound sold primarily due to lower production, partially offset by higher by-product credits. Depreciation and amortization increased 38% per ounce sold and 33% per pound sold primarily due to lower production, partially offset by lower amortization rates. All-in sustaining costs increased 6% per ounce sold and 3% per pound sold primarily due to higher costs applicable to sales, partially offset by lower sustaining capital spend.

Twin Creeks, USA. Gold ounces produced increased 2% due to higher recovery and higher ore grade milled at the Sage autoclave as a result of accessing higher grade ore upon the completion of a stripping campaign, partially offset by lower throughput and lower ore grade milled at the Juniper mill. Costs applicable to sales per ounce sold decreased 6% due to higher production, partially offset by lower capitalization of waste tons and higher leach pad inventory adjustments. Depreciation and amortization per ounce sold were in line with the prior year period. All-in sustaining costs per ounce sold decreased 13% primarily due to lower costs applicable to sales, higher production and lower sustaining capital spend.

CC&V, USA. We purchased 100% of the Cripple Creek & Victor gold mining business in Colorado from AngloGold Ashanti Limited on August 3, 2015.

South America Operations


	Gold or Copper		Costs Applicable				Depreciation and				All-In Sustaining
	Produced		to Sales(1)				Amortization				Costs(2)
	2016	2015	2016		2015		2016		2015		2016		2015

Three Months Ended June 30,	(in thousands)			($ per ounce sold)				($ per ounce sold)				($ per ounce sold)
Yanacocha	156	216	$	773	$	635	$	381	$	324	$	1,123	$	922
Yanacocha (48.65%)	(75)	(105)
Attributable to Newmont (3)	81	111


	Gold or Copper		Costs Applicable				Depreciation and				All-In Sustaining
	Produced		to Sales(1)				Amortization				Costs(2)
	2016	2015	2016		2015		2016		2015		2016		2015

Six Months Ended June 30,	(in thousands)			($ per ounce sold)				($ per ounce sold)				($ per ounce sold)
Yanacocha	336	464	$	743	$	543	$	384	$	304	$	1,027	$	782
Yanacocha (48.65%)	(163)	(226)
Attributable to Newmont (4)	173	238

⁽¹⁾

Excludes Depreciation and amortization and Reclamation and remediation.

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⁽²⁾

All-In Sustaining Costs is a non-GAAP financial measure. See Non-GAAP Financial Measures beginning on page 70.

⁽³⁾

Excludes 17 and 18 ounces in 2016 and 2015, respectively, from our interest in La Zanja.

⁽⁴⁾

Excludes 33 and 32 ounces in 2016 and 2015, respectively, from our interest in La Zanja.

Three months ended June 30, 2016 compared to 2015

Yanacocha, Peru. Gold production decreased 28% primarily due to lower heap leach tons placed and lower ore grade leached in addition to lower mill throughput, lower ore grade milled and lower mill recovery. Costs applicable to sales per ounce sold increased 22% due to lower production, higher direct operating costs, higher leach pad inventory adjustments and lower by-product credits. Depreciation and amortization per ounce sold increased 18% due to lower production, higher leach pad inventory adjustments and higher amortization rates. All-in sustaining costs per ounce sold increased 22% primarily due to lower production and higher sustaining capital spend.

Six months ended June 30, 2016 compared to 2015

Yanacocha, Peru. Gold production decreased 28% primarily due to lower mill recovery, lower mill throughput, lower ore grade milled and lower heap leach tons placed. Costs applicable to sales per ounce sold increased 37% due to lower production, higher direct operating costs, higher leach pad inventory adjustments and lower by-product credits. Depreciation and amortization per ounce sold increased 26% due to lower production, higher leach pad inventory adjustments and higher amortization rates. All-in sustaining costs per ounce sold increased 31% primarily due to lower production and higher sustaining capital spend.

Asia Pacific Operations


	Gold or Copper		Costs Applicable				Depreciation and				All-In Sustaining
	Produced		to Sales(1)				Amortization				Costs(2)
	2016	2015	2016		2015		2016		2015		2016		2015
Three Months Ended June 30,
Gold	(ounces in thousands)		($ per ounce sold)				($ per ounce sold)				($ per ounce sold)
Boddington	192	201	$	716	$	701	$	143	$	135	$	798	$	823
Tanami	142	116		449		511		163		188		604		726
Waihi (3)	—	33		—		526		—		104		—		606
Kalgoorlie	96	83		692		913		49		71		802		1,000
Batu Hijau (4)	189	181		438		464		92		85		554		603
Total/Weighted-Average	619	614	$	577	$	618	$	123	$	127	$	706	$	771
Batu Hijau (51.5%)	(97)	(94)
Attributable to Newmont (5)	522	520

Copper	(pounds in millions)		($ per pound sold)				($ per pound sold)				($ per pound sold)
Boddington	19	20	$	1.83	$	1.68	$	0.35	$	0.30	$	2.11	$	2.00
Batu Hijau (4)	115	125		1.00		1.09		0.20		0.18		1.33		1.48
Total/Weighted-Average	134	145	$	1.13	$	1.17	$	0.23	$	0.20	$	1.46	$	1.55
Batu Hijau (51.5%)	(59)	(65)
Attributable to Newmont	75	80

Copper	(tonnes in thousands)
Boddington	8	9
Batu Hijau (4)	53	57
Total/Weighted-Average	61	66
Batu Hijau (51.5%)	(28)	(30)
Attributable to Newmont	33	36

Table of Contents


	Gold or Copper		Costs Applicable				Depreciation and				All-In Sustaining
	Produced		to Sales(1)				Amortization				Costs(2)
	2016	2015	2016		2015		2016		2015		2016		2015
Six Months Ended June 30,
Gold	(ounces in thousands)		($ per ounce sold)				($ per ounce sold)				($ per ounce sold)
Boddington	381	385	$	700	$	741	$	144	$	142	$	787	$	851
Tanami	246	215		502		546		171		190		669		740
Waihi (3)	—	74		—		493		—		108		—		554
Kalgoorlie	189	145		714		939		52		73		804		1,054
Batu Hijau (4)	381	288		430		476		87		87		534		627
Total/Weighted-Average	1,197	1,107	$	573	$	648	$	122	$	134	$	695	$	796
Batu Hijau (51.5%)	(196)	(149)
Attributable to Newmont (6)	1,001	958

Copper	(pounds in millions)		($ per pound sold)				($ per pound sold)				($ per pound sold)
Boddington	36	38	$	1.72	$	1.81	$	0.34	$	0.32	$	2.00	$	2.13
Batu Hijau (4)	228	234		0.95		1.13		0.19		0.19		1.25		1.52
Total/Weighted-Average	264	272	$	1.04	$	1.23	$	0.21	$	0.21	$	1.34	$	1.61
Batu Hijau (51.5%)	(117)	(121)
Attributable to Newmont	147	151

Copper	(tonnes in thousands)
Boddington	16	17
Batu Hijau (4)	104	106
Total/Weighted-Average	120	123
Batu Hijau (51.5%)	(54)	(55)
Attributable to Newmont	66	68

⁽¹⁾

Excludes Depreciation and amortization and Reclamation and remediation.

⁽²⁾

All-In Sustaining Costs is a non-GAAP financial measure. See Non-GAAP Financial Measures beginning on page 70.

⁽³⁾

On October 29, 2015, the Company sold the Waihi mine.

⁽⁴⁾

On June 30, 2016 the Company announced the anticipated sale of Batu Hijau. For further information, see Note 1 to the Condensed Consolidated Financial Statements.

⁽⁵⁾

Excludes 15 ounces in 2015 from our interest in Duketon.

⁽⁶⁾

Excludes 11 and 28 ounces in 2016 and 2015, respectively, from our interest in Duketon. In March 2016, the Company sold its investment in Regis Resources Ltd., which operates the Duketon operation.

Three months ended June 30, 2016 compared to 2015

Boddington, Australia. Gold production decreased 4% due to lower throughput as a result of decreased mill utilization, partially offset by higher recovery. Copper production decreased 5% primarily due to lower throughput as a result of lower mill utilization and lower ore grade milled as a result of lower ore grade mined, partially offset by higher recovery. Costs applicable to sales per ounce sold increased 2% primarily due to lower production and higher mill maintenance costs, partially offset by a favorable Australian dollar foreign currency exchange rate, lower oil prices and a lower co-product allocation of costs to gold due to changes in the gold and copper revenue percentages. Costs applicable to sales per pound sold increased 9% primarily due to lower production, higher mill maintenance costs and a higher co-product allocation of costs to copper due to changes in the gold and copper revenue percentages, partially offset by a favorable Australian dollar foreign currency exchange rate and lower oil prices. Depreciation and amortization increased 6% per ounce sold and 17% per pound sold due to lower production. All-in sustaining costs per ounce sold decreased 3% due to lower sustaining capital spend, partially offset by higher costs applicable to sales. All-in sustaining costs per pound sold increased 6% primarily due to higher costs applicable to sales, partially offset by lower sustaining capital spend.

Tanami, Australia. Gold ounces produced increased 22% primarily due to higher ore grade milled as a result of higher ore grade mined and higher throughput. Costs applicable to sales per ounce sold decreased 12% mainly due to higher production and a favorable Australian dollar foreign currency exchange rate and lower oil prices, partially offset by higher underground mining costs due to lower capitalization of mine development. Depreciation and amortization per

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ounce sold decreased 13% primarily due to higher production. All-in sustaining costs per ounce sold decreased 17% due to higher production and lower sustaining capital spend.

Waihi, New Zealand. On October 29, 2015, we completed the sale of the Waihi mine to OceanaGold.

Kalgoorlie, Australia. Gold ounces produced increased 16% due to higher ore grade milled as a result of higher ore grade mined and higher throughput. Costs applicable to sales per ounce sold decreased 24% primarily due to higher production and a favorable Australian dollar foreign currency exchange rate and lower oil prices. Depreciation and amortization per ounce sold decreased 31% primarily due to higher production and lower amortization rates. All-in sustaining costs per ounce sold decreased 20% primarily due to lower costs applicable to sales.

Batu Hijau, Indonesia. Gold ounces produced increased 4% due to higher ore grade milled as a result of higher ore grade mined and a lower build of gold in-circuit inventory as compared to the prior year period, partially offset by lower throughput. Copper pounds produced decreased 8% due to lower throughput and lower ore grade milled. Costs applicable to sales per ounce sold decreased 6% primarily due to higher production and lower oil prices, partially offset by a higher co-product allocation of costs to gold due to changes in the gold and copper revenue percentages. Costs applicable to sales per pound sold decreased 8% primarily due to lower oil prices and a lower co-product allocation of costs to copper due to changes in the gold and copper revenue percentages, partially offset by lower production. Depreciation and amortization per ounce sold increased 8% primarily due to higher amortization rates and a higher co-product allocation of costs to gold due to changes in the gold and copper revenue percentages, partially offset by higher production. Depreciation and amortization per pound sold increased 11% primarily due to lower production, partially offset by a lower co-product allocation of costs to copper due to changes in the gold and copper revenue percentages. All-in sustaining costs decreased 8% per ounce sold and 10% per pound sold due to lower costs applicable to sales and lower sustaining capital spend.

Six months ended June 30, 2016 compared to 2015

Boddington, Australia. Gold and copper production decreased 1% and 5%, respectively, due to lower ore grade milled, partially offset by higher recovery. Costs applicable to sales per ounce sold decreased 6% primarily due to a favorable Australian dollar foreign currency exchange rate, lower oil prices and stockpile inventory adjustments in the prior year period, partially offset by lower production, higher mill maintenance costs and a higher co-product allocation of costs to gold due to changes in the gold and copper revenue percentages. Costs applicable to sales per pound sold decreased 5% primarily due to a favorable Australian dollar foreign currency exchange rate, lower oil prices and a lower co-product allocation of costs to copper due to changes in the gold and copper revenue percentages and stockpile inventory adjustments in the prior year period, partially offset by lower production and higher mill maintenance costs. Depreciation and amortization per ounce sold was in line with the prior year period. Depreciation and amortization per pound sold increased 6% primarily due to lower production. All-in sustaining costs decreased 8% per ounce sold and 6% per pound sold primarily due to lower costs applicable to sales and lower sustaining capital costs.

Tanami, Australia. Gold ounces produced increased 14% mainly due to higher ore grade milled as a result of higher ore grade mined and higher throughput due to higher ore tons mined. Costs applicable to sales per ounce sold decreased 8% due to higher production and a favorable Australian dollar foreign currency exchange rate and lower oil prices, partially offset by higher underground mining costs due to lower capitalization of mine development and higher mine maintenance costs. Depreciation and amortization per ounce sold decreased 10% primarily due to higher production. All-in sustaining costs per ounce sold decreased 10% primarily due to higher production and lower sustaining capital spend, partially offset by higher costs applicable to sales.

Waihi, New Zealand. On October 29, 2015, we completed the sale of the Waihi mine to OceanaGold.

Kalgoorlie, Australia. Gold ounces produced increased 30% primarily due to higher throughput as a result of higher mill utilization and higher ore grade milled as a result of higher ore grade mined. Costs applicable to sales per ounce sold decreased 24% due to higher production, a favorable Australian dollar foreign currency exchange rate and lower oil prices. Depreciation and amortization per ounce sold decreased 29% due to higher production and lower amortization rates. All-in sustaining costs per ounce sold decreased 24% primarily due to lower costs applicable to sales, lower sustaining capital spend and higher production.

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Batu Hijau, Indonesia. Gold ounces produced increased 32% due to higher ore grade milled as a result of higher ore grade mined, higher recovery and a lower build of gold in-circuit inventory as compared to the prior year period. Copper pounds produced decreased 3% primarily due to lower ore grade milled and lower recovery. Costs applicable to sales per ounce sold decreased 10% primarily due to higher production, partially offset by a higher co-product allocation of costs to gold due to changes in the gold and copper revenue percentages. Costs applicable to sales per pound sold decreased 16% primarily due to a lower co-product allocation of costs to copper due to changes in the gold and copper revenue percentages, partially offset by lower production. Depreciation and amortization per ounce sold and per pound sold were in line with the prior year period. All-in sustaining costs per ounce sold decreased 15% primarily due to higher production and lower sustaining capital spend. All-in sustaining costs per pound sold decreased 18% primarily due to lower costs applicable to sales and lower sustaining capital spend, partially offset by lower production.

Africa Operations


	Gold or Copper		Costs Applicable				Depreciation and				All-In Sustaining
	Produced		to Sales(1)				Amortization				Costs(2)
	2016	2015	2016		2015		2016		2015		2016		2015

Three Months Ended June 30,	(in thousands)		($ per ounce sold)				($ per ounce sold)				($ per ounce sold)
Ahafo	90	74	$	649	$	596	$	182	$	175	$	923	$	958
Akyem	115	121		489		423		276		202		574		533
Total / Weighted Average	205	195	$	560	$	488	$	234	$	192	$	733	$	711


	Gold or Copper		Costs Applicable				Depreciation and				All-In Sustaining
	Produced		to Sales(1)				Amortization				Costs(2)
	2016	2015	2016		2015		2016		2015		2016		2015

Six Months Ended June 30,	(in thousands)		($ per ounce sold)				($ per ounce sold)				($ per ounce sold)
Ahafo	178	175	$	655	$	575	$	179	$	161	$	888	$	837
Akyem	229	236		483		412		263		195		570		521
Total / Weighted Average	407	411	$	558	$	481	$	227	$	181	$	716	$	672

⁽¹⁾

Excludes Depreciation and amortization and Reclamation and remediation.

⁽²⁾

All-In Sustaining Costs is a non-GAAP financial measure. See Non-GAAP Financial Measures beginning on page 70.

Three months ended June 30, 2016 compared to 2015

Ahafo, Ghana. Gold production increased 22% primarily due to higher throughput as a result of power availability as compared to the required load shedding in the prior year period driven by the power shortage in Ghana, a lower build of in-circuit inventory and higher recovery. Costs applicable to sales per ounce sold increased 9% primarily due to higher costs from stockpile inventory and higher milling costs as a result of higher throughput, partially offset by higher production. Depreciation and amortization per ounce sold increased 4% due to higher amortization rates, partially offset by higher production. All-in sustaining costs per ounce sold decreased 4% primarily due to higher production and lower sustaining capital spend, partially offset by higher costs applicable to sales.

Akyem, Ghana. Gold production decreased 5% mainly due to lower ore grade milled and a lower draw-down of in-circuit inventory, partially offset by higher throughput as a result of power availability as compared to the required load shedding in the prior year period driven by the power shortage in Ghana. Costs applicable to sales per ounce sold increased 16% due to higher direct operating costs, including higher milling costs due to higher throughput, and lower production. Depreciation and amortization per ounce sold increased 37% due to higher amortization rates and lower production. All-in sustaining costs per ounce sold increased 8% primarily due to higher costs applicable to sales and lower production, partially offset by lower sustaining capital spend.

Six months ended June 30, 2016 compared to 2015

Ahafo, Ghana. Gold production increased 2% due to higher throughput as a result of power availability as

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compared to the required load shedding in the prior year period driven by the power shortage in Ghana, partially offset by lower ore grade milled, a build of in‑circuit inventory in the current year period as compared to a draw-down in the prior year period and lower recovery. Costs applicable to sales per ounce sold increased 14% due to higher direct operating costs, including higher milling costs due to higher throughput, partially offset by higher production. Depreciation and amortization per ounce sold increased 11% due to higher amortization rates, partially offset by higher production. All-in sustaining costs per ounce sold increased 6% primarily due to higher costs applicable to sales, partially offset by higher production and lower sustaining capital spend.

Akyem, Ghana. Gold production decreased 3% due to lower ore grade milled, a build of in-circuit inventory as compared to a draw-down in the prior year period and lower recovery, partially offset by higher throughput as a result of power availability as compared to the required load shedding in the prior year period driven by the power shortage in Ghana. Costs applicable to sales per ounce sold increased 17% due to higher direct operating costs, including higher milling costs due to higher throughput, and lower production. Depreciation and amortization per ounce sold increased 35% due to higher amortization rates and lower production. All-in sustaining costs per ounce sold increased 9% primarily due to higher costs applicable to sales and lower production, partially offset by lower sustaining capital spend.

Foreign Currency Exchange Rates

Foreign currency exchange rates can increase or decrease profit margins and Costs applicable to sales to the extent costs are paid in foreign currencies. Such fluctuations have not had a material impact on our revenue since gold and copper are sold throughout the world principally in U.S. dollars. Despite selling gold and copper in London we have no exposure to the euro or the British pound.

Our foreign operations sell their gold and copper production based on U.S. dollar metal prices. Approximately 34% and 37% of Costs applicable to sales for our foreign operations were paid in currencies other than the U.S. dollar during the three months ended June 30, 2016 and 2015, respectively, of which approximately 27% was denominated in the Australian dollar in the current year. Approximately 31% and 37% of Costs applicable to sales for our foreign operations were paid in currencies other than the U.S. dollar during the six months ended June 30, 2016 and 2015, respectively, of which approximately 24% was denominated in the Australian dollar in the current year. Variations in the local currency exchange rates in relation to the U.S. dollar at our foreign mining operations decreased Costs applicable to sales by approximately $12 per ounce and $16 per ounce, net of hedging losses, during the three and six months ended June 30, 2016, respectively, compared to the same periods in 2015. Australia accounted for $12 per ounce and $14 per ounce of the previously mentioned decreases in Costs applicable to sales.

Liquidity and Capital Resources

Liquidity Overview

During the six months ended June 30, 2016, we increased our cash and cash equivalents position from $2,782 to $2,902. Cash inflows of $120 were primarily driven by operating cash flows from continuing operations of $1,304 in addition to proceeds received from the sale of Regis Resources Ltd. of $184. These inflows were partially offset by cash outflows of $641 for debt repayments at Corporate and Batu Hijau, $591 for additions to property, plant and mine development, and $146 for dividends paid to noncontrolling interests at Yanacocha.

Operating Activities

Net cash provided by continuing operating activities was $1,304 during the six months ended June 30, 2016, an increase of $235 from the six months ended June 30, 2015, primarily due to higher average realized gold prices, an increase in consolidated gold ounces sold and copper pounds sold and favorable movements in working capital, partially offset by higher operating costs and lower average realized copper prices.

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Investing Activities

Net cash used in investing activities decreased to $405 during the six months ended June 30, 2016 compared to $539 during the same period in 2015. Details of investing activities are below:

Additions to property, plant and mine development were $591 and $606 during the six months ended June 30, 2016 and 2015, respectively, as follows:


	Six Months Ended
	June 30,
	2016		2015
North America:
Carlin	$	79	$	115
Phoenix		7		15
Twin Creeks		20		31
Long Canyon		73		24
CC&V (1)		36		—
Other North America		2		2
		217		187
South America:
Yanacocha		38		34
Merian		142		164
		180		198
Asia Pacific:
Boddington		23		29
Tanami		57		46
Waihi (2)		—		10
Kalgoorlie		8		11
Batu Hijau (3)		20		40
Other Asia Pacific		—		2
		108		138
Africa:
Ahafo		39		45
Akyem		10		19
		49		64
Corporate and Other		4		30
Accrual basis		558		617
Decrease (increase) in accrued capital expenditures and other non-cash adjustments		33		(11)
Cash basis	$	591	$	606

⁽¹⁾

On August 3, 2015, the Company acquired the CC&V gold mining business.

⁽²⁾

On October 29, 2015, the Company sold the Waihi mine.

⁽³⁾

On June 30, 2016, we announced the anticipated sale of Batu Hijau. For further information, see Note 1 to the Condensed Consolidated Financial Statements.

Capital expenditures in North America during the six months ended June 30, 2016 primarily related to the development of the Long Canyon project, the mine life extension project at CC&V, surface and underground mine development, tailings facility construction and capitalized component purchases. Capital expenditures in South America primarily related to the development of the Merian project, construction of water treatment facilities, a tailings facility expansion, capitalized component purchases and infrastructure improvements. The majority of capital expenditures in Asia Pacific were for underground mine development at Tanami, tailings and support facility construction and equipment and capitalized component purchases at other sites in Australia and equipment and capitalized component purchases in Batu Hijau. Capital expenditures in Africa were primarily related to tailings facility expansion, water treatment plant construction, capitalized component purchases and the Subika Underground project.

Capital expenditures in North America during the six months ended June 30, 2015 primarily related to the development of the Turf Vent Shaft project, development of the Long Canyon project, surface and underground mine development, tailings facility construction and capitalized component purchases. Capital expenditures in South America were primarily related to the development of the Merian project, capitalized component purchases, surface mine development and infrastructure improvements. The majority of capital expenditures in Asia Pacific were for

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underground mine development, tailings and support facility construction and mining equipment purchases in Australia and New Zealand and equipment and capitalized component spend in Batu Hijau. Capital expenditures in Africa were related to tailings facility expansion, providing supplemental power capacity, capitalized component purchases, Subika Underground and Ahafo mill expansion. Capital expenditures in Corporate were primarily related to TMAC Resources.

Proceeds from sales of investments. During the six months ended June 30, 2016, we received $184 from the sale of Regis Resources Ltd. During the six months ended June 30, 2015, we received $29 primarily from the maturity of a Certificate of Deposit for $25.

Proceeds from sales of other assets. During the six months ended June 30, 2016, we received $8 primarily from cash received from the sale of various royalties on mineral interests. During the six months ended June 30, 2015, we received $44, of which, $38 was from the sale of Hemlo mineral rights in Ontario, Canada and $6 was from the sale of Relief Canyon in Nevada.

Financing Activities

Net cash (used in) provided by financing activities was $778 during the six months ended June 30, 2016 compared to net cash provided by financing activities of $400 during the six months ended June 30, 2015. Details of financing activities are below:

Repayment of debt. During the six months ended June 30, 2016, we paid $641 in debt repayments, of which $498 related to reductions of Senior Notes during the first quarter and $140 related to repayments of the PTNNT revolving credit facility. During the six months ended June 30, 2015, we paid $281 in debt repayments, of which $200 was from the 2019 term loan facility, $55 was for the PTNNT revolving credit facility and $25 was for the Ahafo Project Finance Facility.

Scheduled minimum debt repayments are $3 for the remainder of 2016, $765 in 2017, $nil in 2018, $901 in 2019, $nil in 2020 and $3,974 thereafter. We generally expect to be able to fund maturities of debt from Net cash provided by operating activities, current investments, existing cash balances and available credit facilities. Depending upon market conditions and strategic considerations, we may choose to refinance some maturing debt in the capital markets.

At June 30, 2016 and December 31, 2015, we were in compliance with all debt covenants and provisions related to potential defaults.

Proceeds from stock issuance, net. During the six months ended June 30, 2015, we received $675 in net proceeds from a common stock issuance. Proceeds from the common stock sale, supplemented with cash from our balance sheet, were used for the acquisition of CC&V mine.

Proceeds from the sale of noncontrolling interests. We received $37 in proceeds during the six months ended June 30, 2015, of which, $34 related to TMAC’s private placement to raise funds and $3 was for the remaining payment from the government of Suriname for the 25% noncontrolling interest in the development of the Merian project.

Funding from noncontrolling interests. We received $50 and $62 in funding during the six months ended June 30, 2016 and 2015, respectively, for the development of the Merian project from Staatsolie (a company wholly owned by the Republic of Suriname).

Dividends paid to noncontrolling interests. During the six months ended June 30, 2016, Yanacocha paid dividends of $146 to noncontrolling interests.

Dividends paid to common stockholders. We declared regular quarterly dividends totaling $0.050 and $0.050 per common share for the six months ended June 30, 2016 and 2015, respectively. We paid dividends of $27 and $23 to common stockholders during the six months ended June 30, 2016 and 2015, respectively.

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Increase in restricted cash, net. During the six months ended June 30, 2016, we had a net increase of $13 in restricted cash primarily related to reclamation at PTNNT. During the six months ended June 30, 2015, we had a net increase of $59 in restricted cash at PTNNT, of which $45 was for a revolving credit facility payment that was paid later in 2015 and $14 was for reclamation.

Discontinued Operations

Net cash used in discontinued operations was $5 and $6 during the six months ended June 30, 2016 and 2015, respectively, related to payments on the Holt property royalty.

Off-Balance Sheet Arrangements

We have the following off-balance sheet arrangements: operating leases (as discussed in Note 28 to the Consolidated Financial Statements for the year ended December 31, 2015, filed on February 17, 2016 on Form 10-K) and $2,164 of outstanding letters of credit, surety bonds and bank guarantees (see Note 22 to the Condensed Consolidated Financial Statements). At June 30, 2016, $75 of the $3,000 corporate revolving credit facility was used to secure the issuance of letters of credit, primarily supporting reclamation obligations.

We also have sales agreements or commitments to sell copper and gold concentrates at market prices as follows (in thousands of tons):


	2016	2017	2018	2019	2020	Thereafter
Batu Hijau (1)	433	––	––	––	––	––
Boddington	114	234	162	66	66	––
Phoenix	53	46	52	46	47	184
	600	280	214	112	113	184

⁽¹⁾

On June 30, 2016 we announced the anticipated sale of Batu Hijau. For further information, see Note 1 to the Condensed Consolidated Financial Statements.

Other Liquidity Matters

At June 30, 2016, the Company had $2,902 in Cash and cash equivalents, of which $1,732 was held in foreign subsidiaries and is primarily held in U.S. dollar denominated accounts with the remainder in foreign currencies readily convertible to U.S. dollars. At June 30, 2016, $715 of the consolidated cash and cash equivalents was attributable to noncontrolling interests primarily related to our Indonesian, Peruvian and Surinamese operations which is being held to fund those operations and development projects. At June 30, 2016, $1,643 in consolidated cash and cash equivalents ($948 attributable to Newmont) was held at certain foreign subsidiaries that, if repatriated, may be subject to withholding taxes. The repatriation of this cash and the applicable withholding taxes would generate foreign tax credits in the U.S. As a result, we expect that there would be no additional tax burden upon repatriation after considering the cash cost associated with the withholding taxes.

We believe that our liquidity and capital resources from U.S. operations and flow-through foreign subsidiaries are adequate to fund our U.S. operations and corporate activities.

Environmental

Our mining and exploration activities are subject to various federal and state laws and regulations governing the protection of the environment. We have made, and expect to make in the future, expenditures to comply with such laws and regulations, but cannot predict the full amount of such future expenditures. At June 30, 2016 and December 31, 2015, $1,593 and $1,553, respectively, were accrued for reclamation costs relating to currently or recently producing mineral properties.

Reclamation costs are allocated to expense over the life of the related assets and are periodically adjusted to reflect changes in the estimated present value resulting from the passage of time and revisions to the estimates of either the timing or amount of the reclamation costs. Reclamation obligations are based on when the spending for an existing environmental disturbance will occur. We review, on at least an annual basis, the reclamation obligation at each mine.

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Accounting for reclamation obligations requires management to make estimates unique to each mining operation of the future costs we will incur to complete the reclamation work required to comply with existing laws and regulations. As mining operations progress over their mine life, we are able to more accurately predict the estimated future reclamation costs. Any such changes in future costs, the timing of reclamation activities, or scope could materially impact the amounts charged to earnings for reclamation. Additionally, future changes to environmental laws and regulations could increase the extent of reclamation work required.

In addition to assessing water treatment options to comply with the new water standards described above, we are also performing a comprehensive update to the Yanacocha reclamation plan to address stakeholder input and changes in closure activities and estimated closure costs while preserving optionality for potential future projects at Yanacocha.

The revised reclamation plan, once approved, could result in a material increase in the reclamation obligation at Yanacocha. Additionally, increases in the future reclamation costs at Yanacocha could result in a significant increase in all-in sustaining costs per ounce and possibly result in impairments to Yanacocha’s long-lived assets based upon then current mine plans. We will continue to advance the update to the Yanacocha reclamation plan and expect to further refine the associated cost estimates in late 2016 in connection with completing the revised Environmental Impact Assessment and our mine planning process.

In addition, we are involved in several matters concerning environmental obligations associated with former mining activities. Based upon our best estimate of our liability for these matters, $311 and $318 were accrued for such obligations at June 30, 2016 and December 31, 2015, respectively. We spent $10 and $25 during the six months ended 2016 and 2015, respectively, for environmental obligations related to the former, primarily historic, mining activities and have classified $34 as a current liability at June 30, 2016.

During the six months ended June 30, 2016 and 2015, capital expenditures were approximately $30 and $58, respectively, to comply with environmental regulations.

For more information on the Company’s reclamation and remediation liabilities, see Notes 5 and 22 to the Condensed Consolidated Financial Statements.

Accounting Developments

For a discussion of Recently Adopted and Recently Issued Accounting Pronouncements, see Note 2 to the Condensed Consolidated Financial Statements.

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Non-GAAP Financial Measures

Non-GAAP financial measures are intended to provide additional information only and do not have any standard meaning prescribed by 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.

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 does 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:


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2016		2015		2016		2015
Net income (loss) attributable to Newmont stockholders	$	23	$	72	$	75	$	255
Net income (loss) attributable to noncontrolling interests		39		76		122		122
Loss (income) from discontinued operations		27		(9)		53		(17)
Equity loss (income) of affiliates		5		7		10		16
Income and mining tax expense (benefit)		310		152		634		345
Depreciation and amortization		314		276		636		565
Interest expense, net		71		82		150		167
EBITDA	$	789	$	656	$	1,680	$	1,453
Adjustments:
Impairment of investments (1)	$	—	$	16	$	—	$	73
Impairment of long-lived assets (2)		4		2		4		3
Restructuring and other (3)		9		9		22		14
Acquisition costs (4)		2		8		2		8
Loss on debt repayment (5)		—		—		3		—
Loss (gain) on asset and investment sales (6)		—		1		(104)		(43)
Adjusted EBITDA	$	804	$	692	$	1,607	$	1,508

⁽¹⁾

Impairment of investments, included in Other income, net, represents other-than-temporary impairments on equity and cost method investments and does not relate to our core operations.

⁽²⁾

Impairment of long-lived assets, included in Other expense, net, represents non-cash write-downs that do no impact our core operations.

⁽³⁾

⁽⁴⁾

Acquisition costs, included in Other expense, net represents adjustments made in the second quarter of 2016 to the contingent consideration liability from the acquisition of Boddington, and costs associated with the acquisition of CC&V in 2015.

⁽⁵⁾

Loss on debt repayment, included in Other income, net and Interest expense, net, represents the impact of the debt tender offer on our 2019 Notes and 2039 Notes during the first quarter of 2016.

⁽⁶⁾

Loss (gain) on asset and investment sales, included in Other income, net, represents primarily the sale of our holdings in Regis Resources Ltd. in the first quarter of 2016 and land sales of Hemlo mineral rights in Canada and the Relief Canyon mine in Nevada during the first quarter of 2015.

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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 production and sale of minerals, by excluding certain items that have a disproportionate impact on our results for a particular period. The net income (loss) adjustments are generally presented net of tax at the Company’s statutory effective tax rate of 35% and net of our partners’ noncontrolling interests when applicable. The impact of the adjustments through the Company’s Valuation allowance is included in Tax adjustments. The Tax adjustment includes items such as foreign tax credits, alternative minimum tax credits, capital losses and disallowed foreign losses. 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:


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2016		2015		2016		2015
Net income (loss) attributable to Newmont stockholders	$	23	$	72	$	75	$	255
Loss (income) from discontinued operations (1)		27		(9)		53		(17)
Net income (loss) attributable to Newmont stockholders from continuing operations		50		63		128		238
Impairment of investments (2)		—		10		—		47
Impairment of long-lived assets (3)		2		2		2		2
Restructuring and other (4)		4		5		11		7
Acquisition costs (5)		1		5		1		5
Loss (gain) on asset and investment sales (6)		—		1		(104)		(27)
Loss on debt repayment (7)		—		—		2		—
Tax adjustments (8)		174		45		373		89
Adjusted net income (loss)	$	231	$	131	$	413	$	361

Net income (loss) per share, basic	$	0.04	$	0.14	$	0.14	$	0.51
Loss (income) from discontinued operations, net of taxes		0.05		(0.01)		0.10		(0.03)
Net income (loss) attributable to Newmont stockholders from continuing operations		0.09		0.13		0.24		0.48
Impairment of investments, net of taxes		—		0.02		—		0.09
Impairment of long-lived assets, net of taxes		—		—		—		—
Restructuring and other, net of taxes		0.01		0.01		0.02		0.01
Acquisition costs, net of taxes		—		0.01		—		0.01
Loss (gain) on asset and investment sales, net of taxes		—		—		(0.20)		(0.05)
Loss on debt repayment, net of taxes		—		—		—		—
Tax adjustments		0.34		0.09		0.72		0.18
Adjusted net income (loss) per share, basic	$	0.44	$	0.26	$	0.78	$	0.72

Net income (loss) per share, diluted	$	0.04	$	0.14	$	0.14	$	0.51
Loss (income) from discontinued operations, net of taxes		0.05		(0.01)		0.10		(0.03)
Net income (loss) attributable to Newmont stockholders from continuing operations		0.09		0.13		0.24		0.48
Impairment of investments, net of taxes		—		0.02		—		0.09
Impairment of long-lived assets, net of taxes		—		—		—		—
Restructuring and other, net of taxes		0.01		0.01		0.02		0.01
Acquisition costs, net of taxes		—		0.01		—		0.01
Loss (gain) on asset and investment sales, net of taxes		—		—		(0.20)		(0.05)
Loss on debt repayment, net of taxes		—		—		—		—
Tax adjustments		0.34		0.09		0.72		0.18
Adjusted net income (loss) per share, diluted	$	0.44	$	0.26	$	0.78	$	0.72

Weighted average common shares (millions):
Basic		531		505		530		502
Diluted		533		506		532		503

⁽¹⁾

Loss (income) from discontinued operations relates to adjustments in our Holt property royalty and is presented net of tax expense (benefit) of $(12), $4, $(23) and $8, respectively.

⁽²⁾

Impairment of investments, included in Other income, net, represents other-than-temporary impairments on equity and cost method investments and does not relate to our core operations. Amounts are presented net of tax expense (benefit) of $-, $(6), $- and $(26), respectively.

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⁽³⁾

Impairment of long-lived assets, included in Other expense, net, represents non-cash write-downs that do not impact our core operations. Amounts are presented net of tax expense (benefit) of $(1), $-, $(1) and $(1), respectively, and amounts attributed to noncontrolling interest income (expense) of $(1), $-, $(1) and $-, respectively.

⁽⁴⁾

Restructuring and other, included in Other expense, net, represents certain costs associated with the Full Potential initiative announced in 2013, a one-time payment to PT Freeport Indonesia for engineering studies related to their smelter project in the second quarter of 2016, accrued legal costs in our Africa region during 2016 as well as system integration costs related to our acquisition of CC&V. Amounts are presented net of tax expense (benefit) of $(3), $(3), $(8) and $(5), respectively, and amounts attributed to noncontrolling interest income (expense) of $(2), $(1), $(3) and $(2), respectively.

⁽⁵⁾

Acquisition costs, included in Other expense, net, represents adjustments made in the second quarter of 2016 to the contingent consideration liability from the acquisition of Boddington and costs associated with the acquisition of CC&V in 2015. Amounts are presented net of tax expense (benefit) of $(1), $(3), $(1) and $(3), respectively.

⁽⁶⁾

Loss (gain) on asset and investment sales, included in Other income, net, primarily represents the sale of our holdings in Regis Resources Ltd. in the first quarter of 2016 and land sales of Hemlo mineral rights in Canada and the Relief Canyon mine in Nevada during the first quarter of 2015. Amounts are presented net of tax expense (benefit) of $-, $-, $- and $16, respectively.

⁽⁷⁾

Loss on debt repayment, included in Other income, net and Interest expense, net, represents the impact of the debt tender offer on our 2019 Notes and 2039 Notes during the first quarter of 2016. Amounts are presented net of tax expense (benefit) of $-, $-, $(1) and $-, respectively.

⁽⁸⁾

Tax adjustments include movements in tax valuation allowance and tax adjustments not related to core operations. Second quarter and year to date tax adjustments were primarily the result of a tax restructuring and a loss carryback, both of which resulted in an increase in the Company’s valuation allowance on credits.

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 operating activities plus Net cash used in discontinued operations less Additions to property, plant and mine development as presented on the Condensed Consolidated Statements of Cash Flow. 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 Flow.

The following table sets forth a reconciliation of Free Cash Flow, a non-GAAP financial measure, to Net cash provided by 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 used in investing activities and Net cash used in financing activities.


	Six Months Ended June 30,
	2016		2015
Net cash provided by operating activities	$	1,299	$	1,063
Plus: Net cash used in discontinued operations		5		6
Net cash provided by continuing operating activities		1,304		1,069
Less: Additions to property, plant and mine development		(591)		(606)
Free Cash Flow	$	713	$	463

Net cash (used in) investing activities (1)	$	(405)	$	(539)
Net cash (used in) provided by financing activities	$	(778)	$	400

⁽¹⁾

Net cash used in investing activities includes Additions to property, plant and mine development, which is included in the Company’s computation of Free Cash Flow.

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Costs applicable to sales per ounce/pound

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


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2016		2015		2016		2015
Costs applicable to sales (1)	$	912	$	858	$	1,818	$	1,698
Gold sold (thousand ounces)		1,429		1,337		2,850		2,704
Costs applicable to sales per ounce	$	637	$	642	$	638	$	628

⁽¹⁾

Includes by-product credits of $14 and $27 during the three and six months ended June 30, 2016, respectively, and $12 and $26 during the three and six months ended June 30, 2015, respectively.

Costs applicable to sales per pound


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2016		2015		2016		2015
Costs applicable to sales (1)	$	147	$	169	$	322	$	356
Copper sold (million pounds)		122		139		289		278
Costs applicable to sales per pound	$	1.21	$	1.21	$	1.12	$	1.28

⁽¹⁾

Includes by-product credits of $6 and $13 during the three and six months ended June 30, 2016, respectively, and $5 and $11 during the three and six months ended June 30, 2015, respectively.

All-In Sustaining Costs

Newmont has worked to develop 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 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 gold 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 in the investor’s 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

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reduction to AISC. Differences may also arise related to definitional differences of sustaining versus development capital 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 gold production incurred to execute the current mine plan. Costs applicable to sales (“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 Income. 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 Income less the amount of CAS attributable to the production of copper at our Phoenix, Boddington and Batu Hijau mines. The copper CAS at those mine sites is disclosed in Note 4 to the Condensed Consolidated Financial Statements. The allocation of CAS between gold and copper at the Phoenix, Boddington and Batu Hijau mines is based upon the relative sales value of copper and gold produced during the period.

Reclamation Costs - Includes accretion expense related to Asset Retirement Obligation (“ARO”) and the amortization of the related Asset Retirement Cost (“ARC”) for the Company’s operating properties. Accretion related to the ARO 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 gold production and are therefore included in the measure. The allocation of these costs to gold and copper is determined using the same allocation used in the allocation of CAS between gold and copper at the Phoenix, Boddington and Batu Hijau mines.

Advanced Projects and Exploration - Includes incurred expenses related to projects that are designed to increase or enhance current gold production and gold 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. As this relates to sustaining our gold production, and is 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 Income less the amount attributable to the production of copper at our Phoenix, Boddington and Batu Hijau mines. The allocation of these costs to gold and copper is determined using the same allocation used in the allocation of CAS between gold and copper at the Batu Hijau, Boddington and Phoenix mines.

General and Administrative - Includes cost related to administrative tasks not directly related to current gold production, but rather related to supporting our corporate structure and fulfilling 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 - Includes administrative costs to support current gold production. We exclude certain exceptional or unusual expenses from Other expense, net, such as restructuring, as these are not indicative to sustaining our current gold 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 copper is determined using the same allocation used in the allocation of CAS between gold and copper at the Phoenix, Boddington and Batu Hijau 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.

Sustaining Capital - We determined sustaining capital as those capital expenditures that are necessary to maintain current gold production and execute the current mine plan. Capital expenditures to develop new operations, or related to

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projects at existing operations where these projects will enhance gold production or reserves, are considered development. We determined the classification of sustaining and development capital projects based on a systematic review of our project portfolio in light of the nature of each project. Sustaining capital costs are relevant to the AISC metric as these are needed to maintain the Company’s current gold operations and provide improved transparency related to our ability to finance these expenditures from current operations. The allocation of these costs to gold and copper is determined using the same allocation used in the allocation of CAS between gold and copper at the Batu Hijau, Boddington and Phoenix mines.


					Advanced						Treatment							All-In
	Costs				Projects		General		Other		and				All-In		Ounces	Sustaining
Three Months Ended	Applicable		Reclamation		and		and		Expense,		Refining		Sustaining		Sustaining		(000)/Pounds	Costs per
June 30, 2016	to Sales(1)(2)(3)		Costs(4)		Exploration		Administrative		Net(5)		Costs		Capital(6)		Costs		(millions) Sold	oz/lb
Gold
Carlin	$	184	$	1	$	4	$	2	$	—	$	—	$	38	$	229	203	$	1,128
Phoenix		39		1		1		1		—		2		3		47	50		940
Twin Creeks		58		1		2		—		—		—		12		73	115		635
Long Canyon		—		—		7		—		—		—		—		7	—		—
CC&V (7)		58		1		1		1		—		—		2		63	115		548
Other North America		—		—		5		—		—		1		2		8	—		—
North America		339		4		20		4		—		3		57		427	483		884

Yanacocha		120		14		11		2		1		1		24		173	154		1,123
Merian		—		—		11		—		—		—		—		11	—		—
Other South America		—		—		10		—		—		—		—		10	—		—
South America		120		14		32		2		1		1		24		194	154		1,260

Boddington		141		2		—		—		—		5		10		158	198		798
Tanami		64		—		3		—		—		—		20		87	144		604
Kalgoorlie		67		1		2		—		—		2		5		77	96		802
Batu Hijau		65		4		—		1		—		8		4		82	148		554
Other Asia Pacific		—		—		2		5		2		—		1		10	—		—
Asia Pacific		337		7		7		6		2		15		40		414	586		706

Ahafo		60		1		7		—		—		—		16		84	91		923
Akyem		56		2		3		—		—		—		5		66	115		574
Other Africa		—		—		—		1		—		—		—		1	—		—
Africa		116		3		10		1		—		—		21		151	206		733

Corporate and Other		—		—		13		50		1		—		2		66	—		—
Total Gold	$	912	$	28	$	82	$	63	$	4	$	19	$	144	$	1,252	1,429	$	876

Copper
Phoenix	$	22	$	—	$	—	$	—	$	—	$	1	$	2	$	25	11	$	2.27
Boddington		33		—		—		—		—		3		2		38	18		2.11
Batu Hijau		92		6		—		1		—		18		7		124	93		1.33
Asia Pacific		125		6		—		1		—		21		9		162	111		1.46
Total Copper	$	147	$	6	$	—	$	1	$	—	$	22	$	11	$	187	122	$	1.53

Consolidated	$	1,059	$	34	$	82	$	64	$	4	$	41	$	155	$	1,439

⁽¹⁾

Excludes Depreciation and amortization and Reclamation and remediation.

⁽²⁾

Includes by-product credits of $20.

⁽³⁾

Includes stockpile and leach pad inventory adjustments of $23 at Carlin, $8 at Twin Creeks and $26 at Yanacocha.

⁽⁴⁾

Reclamation costs include operating accretion of $23 and amortization of asset retirement costs of $11.

⁽⁵⁾

Other expense, net is adjusted for restructuring costs of $9, acquisition costs of $2 and write-downs of $4.

⁽⁶⁾

Excludes development capital expenditures, capitalized interest and the increase in accrued capital of $139. The following are major development projects: Merian, Long Canyon, and the CC&V and the Tanami expansion.

⁽⁷⁾

The Company acquired the CC&V gold mining business on August 3, 2015.

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					Advanced						Treatment							All-In
	Costs				Projects		General		Other		and				All-In		Ounces	Sustaining
Three Months Ended	Applicable		Reclamation		and		and		Expense,		Refining		Sustaining		Sustaining		(000)/Pounds	Costs per
June 30, 2015	to Sales(1)(2)(3)		Costs(4)		Exploration		Administrative		Net(5)		Costs		Capital(6)		Costs		(millions) Sold	oz/lb
Gold
Carlin	$	187	$	1	$	4	$	2	$	—	$	—	$	38	$	232	204	$	1,137
Phoenix		32		2		—		—		—		1		5		40	43		930
Twin Creeks		65		—		3		1		—		—		12		81	125		648
Long Canyon		—		—		3		—		—		—		—		3	—		—
Other North America		—		—		4		—		1		—		1		6	—		—
North America		284		3		14		3		1		1		56		362	372		973

Yanacocha		130		24		8		6		1		—		19		188	204		922
Merian		—		—		3		—		—		—		—		3	—		—
Other South America		—		—		12		—		1		—		—		13	—		—
South America		130		24		23		6		2		—		19		204	204		1,000

Boddington		122		2		—		1		—		4		15		144	175		823
Tanami		59		1		2		—		—		—		23		85	117		726
Waihi (7)		18		—		1		—		—		—		1		20	33		606
Kalgoorlie		78		2		1		—		—		1		4		86	86		1,000
Batu Hijau		73		3		2		—		—		9		7		94	156		603
Other Asia Pacific		—		—		1		3		2		—		2		8	—		—
Asia Pacific		350		8		7		4		2		14		52		437	567		771

Ahafo		43		3		5		—		1		—		17		69	72		958
Akyem		51		1		4		1		—		—		8		65	122		533
Other Africa		—		—		1		3		—		—		—		4	—		—
Africa		94		4		10		4		1		—		25		138	194		711

Corporate and Other		—		—		24		49		1		—		—		74	—		—
Total Gold	$	858	$	39	$	78	$	66	$	7	$	15	$	152	$	1,215	1,337	$	909

Copper
Phoenix	$	17	$	—	$	1	$	—	$	—	$	2	$	2	$	22	9	$	2.44
Boddington		29		1		—		—		—		3		3		36	18		2.00
Batu Hijau		123		5		2		2		1		20		13		166	112		1.48
Asia Pacific		152		6		2		2		1		23		16		202	130		1.55
Total Copper	$	169	$	6	$	3	$	2	$	1	$	25	$	18	$	224	139	$	1.61

Consolidated	$	1,027	$	45	$	81	$	68	$	8	$	40	$	170	$	1,439

⁽¹⁾

Excludes Depreciation and amortization and Reclamation and remediation.

⁽²⁾

Includes by-product credits of $17.

⁽³⁾

Includes stockpile and leach pad inventory adjustments of $27 at Carlin, $3 at Twin Creeks and $18 at Yanacocha.

⁽⁴⁾

Reclamation costs include operating accretion of $21 and amortization of asset retirement costs of $24.

⁽⁵⁾

Other expense, net is adjusted for restructuring costs of $9, acquisition costs of $8 and write-downs of $2.

⁽⁶⁾

Excludes development capital expenditures, capitalized interest and the increase in accrued capital of $152. The following are major development projects: Turf Vent Shaft, Merian, and Conga.

⁽⁷⁾

On October 29, 2015, the Company sold the Waihi mine.

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					Advanced						Treatment							All-In
	Costs				Projects		General		Other		and				All-In		Ounces	Sustaining
Six Months Ended	Applicable		Reclamation		and		and		Expense,		Refining		Sustaining		Sustaining		(000)/Pounds	Costs per
June 30, 2016	to Sales(1)(2)(3)		Costs(4)		Exploration		Administrative		Net(5)		Costs		Capital(6)		Costs		(millions) Sold	oz/lb
Gold
Carlin	$	373	$	2	$	7	$	3	$	—	$	—	$	70	$	455	411	$	1,107
Phoenix		88		2		1		1		—		5		5		102	103		990
Twin Creeks		118		2		4		—		—		—		18		142	251		566
Long Canyon		—		—		13		—		—		—		—		13	—		—
CC&V (7)		91		2		4		1		—		—		2		100	170		588
Other North America		—		—		6		—		2		1		2		11	—		—
North America		670		8		35		5		2		6		97		823	935		880

Yanacocha		248		28		20		5		2		1		38		342	333		1,027
Merian		—		—		14		—		—		—		—		14	—		—
Other South America		—		—		16		2		—		—		—		18	—		—
South America		248		28		50		7		2		1		38		374	333		1,123

Boddington		252		3		—		—		—		10		19		284	361		787
Tanami		123		1		6		—		—		—		34		164	245		669
Kalgoorlie		132		2		3		—		—		3		8		148	184		804
Batu Hijau		165		8		1		4		—		19		8		205	384		534
Other Asia Pacific		—		—		3		8		3		—		1		15	—		—
Asia Pacific		672		14		13		12		3		32		70		816	1,174		695

Ahafo		117		3		12		—		—		—		26		158	178		888
Akyem		111		4		4		—		—		—		12		131	230		570
Other Africa		—		—		1		2		—		—		—		3	—		—
Africa		228		7		17		2		—		—		38		292	408		716

Corporate and Other		—		—		25		93		2		—		4		124	—		—
Total Gold	$	1,818	$	57	$	140	$	119	$	9	$	39	$	247	$	2,429	2,850	$	852

Copper
Phoenix	$	44	$	1	$	—	$	—	$	—	$	2	$	3	$	50	21	$	2.38
Boddington		56		—		—		—		—		6		4		66	33		2.00
Batu Hijau		222		11		—		2		—		46		12		293	235		1.25
Asia Pacific		278		11		—		2		—		52		16		359	268		1.34
Total Copper	$	322	$	12	$	—	$	2	$	—	$	54	$	19	$	409	289	$	1.42

Consolidated	$	2,140	$	69	$	140	$	121	$	9	$	93	$	266	$	2,838

⁽¹⁾

Excludes Depreciation and amortization and Reclamation and remediation.

⁽²⁾

Includes by-product credits of $40.

⁽³⁾

Includes stockpile and leach pad inventory adjustments of $43 at Carlin, $10 at Twin Creeks and $54 at Yanacocha.

⁽⁴⁾

Reclamation costs include operating accretion of $46 and amortization of asset retirement costs of $23.

⁽⁵⁾

Other expense, net is adjusted for restructuring costs of $22, acquisition costs of $2 and write-downs of $4.

⁽⁶⁾

Excludes development capital expenditures, capitalized interest and the increase in accrued capital of $325. The following are major development projects: Merian, Long Canyon, and the CC&V and the Tanami expansion.

⁽⁷⁾

The Company acquired the CC&V gold mining business on August 3, 2015.

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					Advanced						Treatment							All-In
	Costs				Projects		General		Other		and				All-In		Ounces	Sustaining
Six Months Ended	Applicable		Reclamation		and		and		Expense,		Refining		Sustaining		Sustaining		(000)/Pounds	Costs per
June 30, 2015	to Sales(1)(2)(3)		Costs(4)		Exploration		Administrative		Net(5)		Costs		Capital(6)		Costs		(millions) Sold	oz/lb
Gold
Carlin	$	365	$	2	$	7	$	4	$	—	$	—	$	75	$	453	431	$	1,051
Phoenix		73		3		1		1		—		2		9		89	95		937
Twin Creeks		124		1		5		1		—		—		30		161	247		652
Long Canyon		—		—		6		—		—		—		—		6	—		—
Other North America		—		—		6		—		3		—		2		11	—		—
North America		562		6		25		6		3		2		116		720	773		931

Yanacocha		245		49		13		10		1		—		34		352	450		782
Merian		—		—		5		—		—		—		—		5	—		—
Other South America		—		—		22		—		1		—		—		23	—		—
South America		245		49		40		10		2		—		34		380	450		844

Boddington		279		5		1		1		—		11		24		321	377		851
Tanami		117		2		3		—		—		—		37		159	215		740
Waihi (7)		37		1		2		—		—		—		1		41	74		554
Kalgoorlie		138		3		1		—		—		2		11		155	147		1,054
Batu Hijau		124		5		2		1		—		18		13		163	260		627
Other Asia Pacific		—		—		2		6		5		—		2		15	—		—
Asia Pacific		695		16		11		8		5		31		88		854	1,073		796

Ahafo		99		4		11		—		1		—		29		144	172		837
Akyem		97		2		4		—		1		—		19		123	236		521
Other Africa		—		—		2		5		—		—		—		7	—		—
Africa		196		6		17		5		2		—		48		274	408		672

Corporate and Other		—		—		45		94		7		—		3		149	—		—
Total Gold	$	1,698	$	77	$	138	$	123	$	19	$	33	$	289	$	2,377	2,704	$	879

Copper
Phoenix	$	42	$	1	$	1	$	1	$	—	$	1	$	5	$	51	22	$	2.32
Boddington		68		1		—		—		—		7		5		81	38		2.13
Batu Hijau		246		9		3		2		—		44		27		331	218		1.52
Asia Pacific		314		10		3		2		—		51		32		412	256		1.61
Total Copper	$	356	$	11	$	4	$	3	$	—	$	52	$	37	$	463	278	$	1.67

Consolidated	$	2,054	$	88	$	142	$	126	$	19	$	85	$	326	$	2,840

⁽¹⁾

Excludes Depreciation and amortization and Reclamation and remediation.

⁽²⁾

Includes by-product credits of $37.

⁽³⁾

Includes stockpile and leach pad inventory adjustments of $51 at Carlin, $5 at Twin Creeks, $22 at Yanacocha and $18 at Boddington.

⁽⁴⁾

Reclamation costs include operating accretion of $42 and amortization of asset retirement costs of $46.

⁽⁵⁾

Other expense, net is adjusted for restructuring costs of $14, acquisition costs of $8 and write-downs of $3.

⁽⁶⁾

Excludes development capital expenditures, capitalized interest and the increase in accrued capital of $280. The following are major development projects: Turf Vent Shaft, Conga, Long Canyon and Merian.

⁽⁷⁾

On October 29, 2015, the Company sold the Waihi mine.

Safe Harbor Statement

Certain statements contained in this report (including information incorporated by reference herein) are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and are intended to be covered by the safe harbor provided for under these sections. Words such as “expect(s)”, “feel(s)”, “believe(s)”, “will”, “may”, “anticipate(s)”, “estimate(s)”, “should”, “intend(s)” and similar expressions are intended to identify forward-looking statements. Our forward-looking statements may include, without limitation:

estimates regarding future earnings and the sensitivity of earnings to gold, copper and other metal prices;

estimates of future mineral production and sales;

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estimates of future production costs, other expenses and taxes for specific operations and on a consolidated basis;

estimates of future cash flows and the sensitivity of cash flows to gold and other metal prices;

estimates of future capital expenditures, construction, production or closure activities and other cash needs, for specific operations and on a consolidated basis, and expectations as to the funding or timing thereof;

estimates as to the projected development of certain ore deposits, including the timing of such development, the costs of such development and other capital costs, financing plans for these deposits and expected production commencement dates;

estimates of reserves and statements regarding future exploration results and reserve replacement and the sensitivity of reserves to metal price changes;

statements regarding the availability of, and terms and costs related to, future borrowing or financing and expectations regarding future debt repayments or debt tender transactions;

estimates regarding future exploration expenditures, results and reserves;

statements regarding fluctuations in financial and currency markets;

estimates regarding potential cost savings, productivity, operating performance and ownership and cost structures;

expectations regarding the completion and timing of divestitures and costs and charges associated therewith, including, without limitation, statements relating to the sale of the Company’s interest in PTNNT, which remains subject to the closing conditions, some of which remain outside the control of the Company;

expectations regarding statements regarding future transactions, including, without limitation, statements related to future acquisitions and projected benefits, synergies and costs associated with acquisitions and related matters;

expectations regarding the start-up time, design, mine life, production and costs applicable to sales and exploration potential of our projects;

statements regarding future hedge and derivative positions or modifications thereto;

statements regarding political, economic or governmental conditions and environments;

statements regarding the impacts of changes in the legal and regulatory environment in which we operate;

estimates of future costs, accruals for reclamation costs and other liabilities for certain environmental matters, including without limitation with respect to our Yanacocha operation;

estimates of income taxes and expectations relating to tax contingencies or tax audits; and

estimates of pension and other post-retirement costs.

Where we express an expectation or belief as to future events or results, such expectation or belief is expressed in good faith and believed to have a reasonable basis. However, our forward-looking statements are subject to risks,

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uncertainties and other factors, which could cause actual results to differ materially from future results expressed, projected or implied by those forward-looking statements. Such risks include, but are not limited to:

the price of gold, copper and other metal prices and commodities;

the cost of operations;

currency fluctuations;

geological and metallurgical assumptions;

operating performance of equipment, processes and facilities;

labor relations;

timing of receipt of necessary governmental permits or approvals;

domestic and foreign laws or regulations, particularly relating to the environment, mining and processing;

changes in tax laws;

domestic and international economic and political conditions;

our ability to obtain or maintain necessary financing; and

other risks and hazards associated with mining operations.

More detailed information regarding these factors is included in the section titled Item 1, Business; Item 1A, Risk Factors in the Annual Report on Form 10-K for the year ended At December 31, 2015 filed February 17, 2016 and elsewhere throughout this report. Many of these factors are beyond our ability to control or predict. Given these uncertainties, readers are cautioned not to place undue reliance on our forward-looking statements.

All subsequent written and oral forward-looking statements attributable to Newmont or to persons acting on its behalf are expressly qualified in their entirety by these cautionary statements. We disclaim any intention or obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK (dollars in millions, except per ounce and per pound amounts).

Metal Prices

Changes in the market price of gold significantly affect our profitability and cash flow. Gold prices can fluctuate widely due to numerous factors, such as demand; forward selling by producers; central bank sales, purchases and lending; investor sentiment; the strength of the U.S. dollar; inflation, deflation, or other general price instability; and global mine production levels. Changes in the market price of copper also affect our profitability and cash flow. Copper is traded on established international exchanges and copper prices generally reflect market supply and demand, but can also be influenced by speculative trading in the commodity or by currency exchange rates.

Decreases in the market price of gold and copper can also significantly affect the value of our product inventory, stockpiles and ore on leach pads, and it may be necessary to record a write-down to the net realizable value (“NRV”). NRV represents the estimated future sales price based on short-term and long-term metals prices, less estimated costs to complete production and bring the product to sale. The primary factors that influence the need to record write-downs of our product inventory, stockpiles and ore on leach pads include short-term and long-term metals prices and costs for

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production inputs such as labor, fuel and energy, materials and supplies, as well as realized ore grades and recovery rates. The significant assumptions in determining the stockpile, leach pad and product inventory adjustments for each mine site reporting unit at June 30, 2016 included production cost and capitalized expenditure assumptions unique to each operation, a short-term and long-term gold price of $1,260 and $1,300 per ounce, respectively, a short-term and long-term copper price of $2.14 and $3.00 per pound, respectively, and an Australian to U.S. dollar long-term exchange rate of $0.80.

The NRV measurement involves the use of estimates and assumptions unique to each mining operation regarding current and future operating and capital costs, metal recoveries, production levels, commodity prices, proven and probable reserve quantities, engineering data and other factors. A high degree of judgment is involved in determining such assumptions and estimates and no assurance can be given that actual results will not differ significantly from those estimates and assumptions.

Hedging

Our strategy is to provide shareholders with leverage to changes in gold and copper prices by selling our production at spot market prices. Consequently, we do not hedge our gold and copper sales. We have and will continue to manage certain risks associated with commodity input costs, interest rates and foreign currencies using the derivative market.

By using derivatives, we are affected by credit risk, market risk and market liquidity risk. Credit risk is the risk that a third party might fail to fulfill its performance obligations under the terms of a financial instrument. We mitigate credit risk by entering into derivatives with high credit quality counterparties, limiting the amount of exposure to each counterparty and monitoring the financial condition of the counterparties. Market risk is the risk that the fair value of a derivative might be adversely affected by a change in underlying commodity prices, interest rates or currency exchange rates and that this in turn affects our financial condition. We manage market risk by establishing and monitoring parameters that limit the types and degree of market risk that may be undertaken. We mitigate this potential risk to our financial condition by establishing trading agreements with counterparties under which we are not required to post any collateral or be subject to any margin calls on our derivatives. Our counterparties cannot require settlement solely because of an adverse change in the fair value of a derivative. Market liquidity risk is the risk that a derivative cannot be eliminated quickly, by either liquidating it or by establishing an offsetting position. Under the terms of our trading agreements, counterparties cannot require us to immediately settle outstanding derivatives, except upon the occurrence of customary events of default such as covenant breaches, including financial covenants, insolvency or bankruptcy. We further mitigate market liquidity risk by spreading out the maturity of our derivatives over time.

Cash Flow Hedges

Foreign Currency Exchange Risk

We had the following foreign currency derivative contracts in Asia Pacific outstanding at June 30, 2016:


	Expected Maturity Date
	2016		2017		2018		Total/Average
A$ Operating Fixed Forward Contracts:
A$ notional (millions)	72		105		6		183
Average rate ($/A$)	0.95		0.93		0.92		0.94
Expected hedge ratio	11	%	8	%	4	%

The fair value of the A$ foreign currency operating derivative contracts was a net liability position of $36 at June 30, 2016 and $60 at December 31, 2015.

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Diesel Price Risk

We had the following diesel derivative contracts in North America outstanding at June 30, 2016:


	Expected Maturity Date
	2016		2017		Total/Average
Diesel Fixed Forward Contracts:
Diesel gallons (millions)	12		15		27
Average rate ($/gallon)	2.14		1.75		1.92
Expected hedge ratio	61	%	39	%

The fair value of the Diesel derivative contracts was a net liability position of $12 at June 30, 2016 and $32 at December 31, 2015.

Commodity Price Risk

Our provisional gold and copper sales contain an embedded derivative that is required to be separated from the host contract for accounting purposes. The host contract is the receivable from the sale of the gold and copper concentrates at the prevailing indices’ prices at the time of sale. The embedded derivative, which does not qualify for hedge accounting, is marked to market through earnings each period prior to final settlement.

At June 30, 2016, Newmont had gold sales of 258,000 ounces priced at an average of $1,323 per ounce, subject to final pricing over the next several months. Each $25 change in the price for provisionally priced gold sales would have an approximate $3 effect on our Net income (loss) attributable to Newmont stockholders. The London P.M. closing settlement price at June 30, 2016 for gold was $1,321 per ounce.

At June 30, 2016, Newmont had copper sales of 125 million pounds priced at an average of $2.19 per pound, subject to final pricing over the next several months. Each $0.10 change in the price for provisionally priced copper sales would have an approximate $5 effect on our Net income (loss) attributable to Newmont stockholders. The LME closing settlement price at June 30, 2016 for copper was $2.19 per pound.

ITEM 4. CONTROLS AND PROCEDURES.

During the fiscal period covered by this report, the Company’s management, with the participation of the Chief Executive Officer and Chief Financial Officer of the Company, carried out an evaluation of the effectiveness of the design and operation of the Company’s disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)). Based on such evaluation, the Company’s Chief Executive Officer and Chief Financial Officer have concluded that, as of the end of the period covered by this report, the Company’s disclosure controls and procedures are effective to ensure that information required to be disclosed by the Company in reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported within the required time periods and are designed to ensure that information required to be disclosed in its reports is accumulated and communicated to the Company’s management, including the Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure.

On August 3, 2015, the Company acquired CC&V (see Note 3 to the Condensed Consolidated Financial Statements). As permitted by the SEC Staff interpretive guidance for newly acquired businesses, the Company has previously excluded CC&V from its evaluation of internal control over financial reporting. As of June 30, 2016, the Company has completed the process of integrating internal controls over financial reporting for CC&V.

During the third quarter of 2015, the Company began outsourcing certain of its information technology and transactional business processes to a third-party provider. As of June 30, 2016, the Company has transitioned certain procure-to-pay and payroll processes in its Corporate office and its Asia Pacific, North America and South America regions as well as certain global information technology processes, including infrastructure and application support and the service desk, to the third-party provider. The Company plans to continue transitioning additional information

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technology and business processes to the third-party provider through the fourth quarter of 2016. The Company has taken the necessary steps to monitor and maintain appropriate internal controls over financial reporting.

There were no other changes in the Company’s internal control over financial reporting that occurred during the three months ended June 30, 2016, that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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PART II—OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS.

Information regarding legal proceedings is contained in Note 22 to the Condensed Consolidated Financial Statements contained in this Report and is incorporated herein by reference.

ITEM 1A. RISK FACTORS.

There were no material changes to the risk factors disclosed in Item 1, Business; Item 1A in our Annual Report on Form 10-K for the year ended December 31, 2015, as filed with the SEC on February 17, 2016.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS.

None.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES.

None.

ITEM 4. MINE SAFETY DISCLOSURES.

At Newmont, safety is a core value and we strive for superior performance. Our health and safety management system, which includes detailed standards and procedures for safe production, addresses topics such as employee training, risk management, workplace inspection, emergency response, accident investigation and program auditing. In addition to strong leadership and involvement from all levels of the organization, these programs and procedures form the cornerstone of safety at Newmont, ensuring that employees are provided a safe and healthy environment and are intended to reduce workplace accidents, incidents and losses, comply with all mining-related regulations and provide support for both regulators and the industry to improve mine safety.

In addition, we have established our “Rapid Response” process to mitigate and prevent the escalation of adverse consequences if existing risk management controls fail, particularly if an incident may have the potential to seriously impact the safety of employees, the community or the environment. This process provides appropriate support to an affected site to complement their technical response to an incident, so as to reduce the impact by considering the environmental, strategic, legal, financial and public image aspects of the incident, to ensure communications are being carried out in accordance with legal and ethical requirements and to identify actions in addition to those addressing the immediate hazards.

The operation of our U.S. based mines is subject to regulation by the Federal Mine Safety and Health Administration (“MSHA”) under the Federal Mine Safety and Health Act of 1977 (the “Mine Act”). MSHA inspects our mines on a regular basis and issues various citations and orders when it believes a violation has occurred under the Mine Act. Following passage of The Mine Improvement and New Emergency Response Act of 2006, MSHA significantly increased the numbers of citations and orders charged against mining operations. The dollar penalties assessed for citations issued has also increased in recent years.

Newmont is required to report certain mine safety violations or other regulatory matters required by Section 1503(a) of the Dodd-Frank Wall Street Reform and Consumer Protection Act and Item 104 of Regulation S-K, and that required information is included in Exhibit 95 and is incorporated by reference into this Quarterly Report.

ITEM 5. OTHER INFORMATION.

None.

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ITEM 6. EXHIBITS.

(a)

The exhibits to this report are listed in the Exhibit Index.

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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: July 20, 2016		/s/ LAURIE BRLAS
		Laurie Brlas
		Executive Vice President and Chief Financial Officer
		(Principal Financial Officer)

Date: July 20, 2016		/s/ JOHN W. KITLEN
		John W. Kitlen
		Vice President, Controller and Chief Accounting Officer
		(Principal Accounting Officer)

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EXHIBIT INDEX


Exhibit Number		Description

2.1	-	NTPBV Share Sale and Purchase Agreement by and among Nusa Tenggara Partnership BV, as vendor, Newmont Mining Corporation, as vendor guarantor, Sumitomo Corporation, as vendor guarantor, and PT Amman Mineral Internasional, as purchaser, dated June 30, 2016. Incorporated by reference to Registrant’s Form 8-K filed with the Securities and Exchange Commission on July 5, 2016.

2.2	-	Sale and Purchase Agreement – PTPI Loan by and among NVL (USA) Limited, as original lender, Newmont Mining Corporation, as original lender guarantor, and PT Amman Mineral Internasional, as new lender, dated June 30, 2016. Incorporated by reference to Registrant’s Form 8-K filed with the Securities and Exchange Commission on July 5, 2016.

10.1*	-	Senior Executive Compensation Program of Registrant, as amended and restated effective January 1, 2016, filed herewith.

10.2*	-	Section 16 Officer and Senior Executive Annual Incentive Compensation Program, amended and restated effective January 1, 2016, filed herewith.

12.1	-	Computation of Ratio of Earnings to Fixed Charges, filed herewith.

31.1	-	Certification Pursuant to Rule 13A-14 or 15-D-14 of the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 signed by the Principal Executive Officer, filed herewith.

31.2	-	Certification Pursuant to Rule 13A-14 or 15-D-14 of the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 signed by the Principal Financial Officer, filed herewith.

32.1	-	Statement Required by 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 signed by the Principal Executive Officer, filed herewith. (1)

32.2	-	Statement Required by 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 signed by the Principal Financial Officer, filed herewith. (1)

95	-	Information concerning mine safety violations or other regulatory matters required by Section 1503(a) of the Dodd-Frank Wall Street Reform and Consumer Protection Act, filed herewith.

101	-	101.INS	XBRL Instance
		101.SCH	XBRL Taxonomy Extension Schema
		101.CAL	XBRL Taxonomy Extension Calculation
		101.DEF	XBRL Taxonomy Extension Definition
		101.LAB	XBRL Taxonomy Extension Labels
		101.PRE	XBRL Taxonomy Extension Presentation

*These exhibits relate to executive compensation plans and arrangements.

⁽¹⁾

This document is being furnished in accordance with SEC Release Nos. 33-8212 and 34-47551.