NEWMONT CORPORATION 
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
Corporation , a Delaware 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" within Part I, Item 2, Management's Discussion and Analysis.
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, 2019 filed with the Securities and Exchange Commission
("SEC") on February 20, 2020 .
Overview
Newmont is the world's leading gold company and is the only gold company
included in the S&P 500 Index and the Fortune 500 list of companies. We have
been included in the Dow Jones Sustainability Index-World for 13 consecutive
years and have adopted the World Gold Council's Conflict-Free Gold Policy. In
June 2020 , Newmont was ranked the top miner in 3BL Media's 100 Best Corporate
Citizens list which ranks the 1,000 largest publicly traded U.S. companies on
environmental, social and governance transparency and performance. We are
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."), Canada ,
Mexico , Dominican Republic , Peru , Suriname, Argentina , Chile , Australia and
Ghana .
During the first half of 2020, the COVID-19 outbreak escalated to a global
pandemic, which has had varying impacts in the jurisdictions in which we
operate. In response, the Company temporarily placed five sites into care and
maintenance, including Musselwhite, Éléonore, Yanacocha and Cerro Negro in March
2020 and Peñasquito in April 2020 . Operations at all five mine sites resumed in
the second quarter of 2020 and activity was in various stages of ramping up as
of June 30, 2020 .
Refer to the "Second Quarter 2020 Highlights", "Results of Consolidated
Operations", "Liquidity and Capital Resources", "Non-GAAP Financial Measures"
and "Accounting Developments" for further information about the impacts of the
COVID-19 pandemic on the Company.
On April 18, 2019 (the "acquisition date"), Newmont completed the business
acquisition of Goldcorp, Inc. ("Goldcorp"), an Ontario corporation. The Company
acquired all outstanding common shares of Goldcorp in a primarily stock
transaction (the "Newmont Goldcorp transaction") for total cash and non-cash
consideration of $9,456 . The financial information included in the following
discussion and analysis of financial condition and results of operations during
the period ended June 30, 2020 , compared to the same periods in 2019, includes
the results of operations acquired in the Newmont Goldcorp transaction since
April 18, 2019 . For further information, see Note 3 to the Condensed
Consolidated Financial Statements.
On March 10, 2019 , the Company entered into an implementation agreement with
Barrick Gold Corporation ("Barrick") to establish a joint venture ("Nevada JV
Agreement"). On July 1, 2019 (the "effective date"), Newmont and Barrick
consummated the Nevada JV Agreement and established Nevada Gold Mines LLC
("NGM"). As of the effective date, the Company contributed its Carlin , Phoenix ,
Twin Creeks and Long Canyon mines ("existing Nevada mining operations") and
Barrick contributed certain of its Nevada mining operations and assets. Newmont
and Barrick hold economic interests in the joint venture equal to 38.5% and
61.5%, respectively. Barrick acts as the operator of NGM with overall management
responsibility and is subject to the supervision and direction of NGM's Board of
Managers . The Company accounts for its interest in NGM using the proportionate
consolidation method, thereby recognizing its pro-rata share of the assets,
liabilities and operations of NGM. The financial information included in the
following discussion and analysis of financial condition and results of
operations during the period ended June 30, 2020 , compared to the same periods
in 2019, includes the results of operations of NGM since July 1, 2019 .
We continue to focus on improving safety and efficiency at our operations,
maintaining leading environmental, social and governance practices, and
sustaining our global portfolio of longer-life, lower cost mines to generate the
financial flexibility we need to strategically reinvest in the business,
strengthen the Company's investment-grade balance sheet and return cash to
shareholders.
Asset Sales
Kalgoorlie
We entered into a binding agreement dated December 17, 2019 , to sell our 50%
interest in Kalgoorlie Consolidated Gold Mines ("Kalgoorlie"), included as part
of the Australia segment, to Northern Star Resources Limited ("Northern Star ").
The Company completed the sale on January 2, 2020 . As the sale was completed on
January 2, 2020 , there are no results for Kalgoorlie for the three and six
months ended June 30, 2020 included herein.
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Table of ContentsRed Lake We entered into a binding agreement datedNovember 25, 2019 , to sell theRed Lake complex inOntario, Canada , included as part of the Company'sNorth America segment, to Evolution Mining Limited ("Evolution"). The Company completed the sale onMarch 31, 2020 . As the sale was completed onMarch 31, 2020 , results forRed Lake for the six months endedJune 30, 2020 are included within the discussion below; there are no results for the three months endedJune 30, 2020 included herein. For further information on asset sales, see Note 9 to the Condensed Consolidated Financial Statements. Consolidated Financial Results The details of our Net income (loss) from continuing operations attributable toNewmont stockholders are set forth below: Three Months Ended June 30, Increase 2020 2019 (decrease)
Net income (loss) from continuing operations attributable to
$ 412
$ 0.51 $ -$ 0.51 Six Months Ended June 30, Increase 2020 2019 (decrease)
Net income (loss) from continuing operations attributable to
$ 1,249
$ 1.55
The increase in Net income (loss) from continuing operations attributable toNewmont stockholders for the three months endedJune 30, 2020 , compared to the same period in 2019, is primarily due to higher average realized gold prices, the change in fair value of investments, lower operating costs as a result of reduced sales volumes, lower Goldcorp transaction and integration costs, lower exploration costs from the suspension of exploration drilling activities as a result of the COVID-19 pandemic and lower remediation adjustments, partially offset by lower sales volumes due to temporarily placing certain operations into care and maintenance in addition to the sale of Kalgoorlie during 2020 and higher income and mining tax expense. The increase in Net income (loss) from continuing operations attributable toNewmont stockholders for the six months endedJune 30, 2020 , compared to the same period in 2019, is primarily due to higher average realized gold prices, the recognized gain on the sales of Kalgoorlie,Continental Gold, Inc. ("Continental") andRed Lake in 2020, lower Goldcorp transaction and integration costs, the change in fair value of investments, lower exploration costs from the suspension of exploration drilling activities as a result of the COVID-19 pandemic and lower remediation adjustments, partially offset by lower sales volumes due to temporarily placing certain operations into care and maintenance in addition to the sale of Kalgoorlie during 2020, higher amortization rates from the formation of NGM, the impairment charge of TMAC Resources, Inc. ("TMAC") and charges from debt extinguishment. For discussion regarding variations in production volumes and unit cost metrics, see Results of Consolidated Operations below. The details of our Sales are set forth below. See Note 5 to our Condensed Consolidated Financial Statements for additional information. Three Months Ended June 30, Increase Percent 2020 2019 (decrease) Change (1) Gold$ 2,166 $ 2,154 $ 12 1 % Copper 37 59 (22) (37) Silver 76 31 45 145 Lead 23 13 10 77 Zinc 63 - 63 N.M.$ 2,365 $ 2,257 $ 108 5 % 44
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Table of Contents
Six Months Ended
June 30, Increase Percent
2020 2019 (decrease) Change (1)
Gold $ 4,487 $ 3,893 $ 594 15 %
Copper 58 123 (65) (53)
Silver 199 31 168 542
Lead 62 13 49 377
Zinc 140 - 140 N.M.
$ 4,946 $ 4,060 $ 886 22 %
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(1)N.M. - Not meaningful The following analysis summarizes consolidated sales for the three months endedJune 30, 2020 : Three Months Ended June 30, 2020 Gold Copper Silver Lead Zinc (ounces) (pounds) (ounces) (pounds) (pounds) Consolidated sales: Gross before provisional pricing and streaming impact$ 2,162 $ 32 $ 66 $ 23 $ 80 Provisional pricing mark-to-market 17 6 15 - 4 Silver streaming amortization - - 11 - - Gross after provisional pricing and streaming impact 2,179 38 92 23 84 Treatment and refining charges (13) (1) (16) - (21) Net$ 2,166 $ 37 $ 76 $ 23 $ 63 Consolidated ounces (thousands)/ pounds (millions) sold 1,255 13 5,211 31 91 Average realized price (per ounce/pound): (1) Gross before provisional pricing and streaming impact$ 1,721 $ 2.57 $ 12.59 $ 0.77 $ 0.88 Provisional pricing mark-to-market 14 0.45 2.72 (0.02) 0.05 Silver streaming amortization - - 2.25 - - Gross after provisional pricing and streaming impact 1,735 3.02 17.56 0.75 0.93 Treatment and refining charges (11) (0.11) (2.86) - (0.23) Net$ 1,724 $ 2.91 $ 14.70 $ 0.75 $ 0.70
__________________________________________________________________________________________________________________________________________________________________________
(1)Per ounce measures may not recalculate due to rounding.
The following analysis summarizes consolidated sales for the six months ended
Six Months Ended
Gold Copper Silver Lead Zinc
(ounces) (pounds) (ounces) (pounds) (pounds)
Consolidated sales:
Gross before provisional pricing and streaming
impact $ 4,478 $
66
29 (5) 6 (2) (9)
Silver streaming amortization - - 32 - -
Gross after provisional pricing and streaming impact 4,507 61 222 71 191
Treatment and refining charges (20) (3) (23) (9) (51)
Net $ 4,487 $
58
2,715 26 13,889 91 215
Average realized price (per ounce/pound): (1)
Gross before provisional pricing and streaming
impact $ 1,649 $
2.52
11 (0.20) 0.40 (0.02) (0.04)
Silver streaming amortization - - 2.34 - -
Gross after provisional pricing and streaming impact 1,660 2.32 15.96 0.78 0.89
Treatment and refining charges (8) (0.11) (1.61) (0.10) (0.24)
Net $ 1,652 $ 2.21 $ 14.35 $ 0.68 $ 0.65 ____________________________
(1)Per ounce measures may not recalculate due to rounding.
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Table of Contents Zinc sales for the three and six months endedJune 30, 2019 were not significant and therefore are excluded from the tables below. The following analysis summarizes consolidated sales for the three months endedJune 30, 2019 : Three Months Ended June 30, 2019 Gold Copper Silver Lead (ounces) (pounds) (ounces) (pounds) Consolidated sales: Gross before provisional pricing and streaming impact$ 2,154 $ 66 $ 26 $ 15 Provisional pricing mark-to-market 7 (4) - - Silver streaming amortization - - 5 - Gross after provisional pricing and streaming impact 2,161 62 31 15 Treatment and refining charges (7) (3) - (2) Net$ 2,154 $ 59 $ 31 $ 13 Consolidated ounces (thousands)/ pounds (millions) sold 1,636 24 2,167 17 Average realized price (per ounce/pound): (1) Gross before provisional pricing and streaming impact$ 1,317 $ 2.76 $ 11.87 $ 0.88 Provisional pricing mark-to-market 5 (0.17) - - Silver streaming amortization - - 2.33 - Gross after provisional pricing and streaming impact 1,322 2.59 14.20 0.88 Treatment and refining charges (5) (0.11) - (0.12) Net$ 1,317 $ 2.48 $ 14.20 $ 0.76
__________________________________________________________________________________________________________________________________________________________________________
(1)Per ounce measures may not recalculate due to rounding. The following analysis summarizes consolidated sales for the six months endedJune 30, 2019 : Six Months Ended June 30, 2019 Gold Copper Silver Lead (ounces) (pounds) (ounces) (pounds) Consolidated sales: Gross before provisional pricing and streaming impact$ 3,899 $ 129 $ 26 $ 15 Provisional pricing mark-to-market 7 (1) - - Silver streaming amortization - - 5 - Gross after provisional pricing and streaming impact 3,906 128 31 15 Treatment and refining charges (13) (5) - (2) Net$ 3,893 $ 123 $ 31 $ 13 Consolidated ounces (thousands)/ pounds (millions) sold 2,974 46 2,167 17 Average realized price (per ounce/pound): (1) Gross before provisional pricing and streaming impact$ 1,312 $ 2.81 $ 11.87 $ 0.88 Provisional pricing mark-to-market 2 (0.02) - - Silver streaming amortization - - 2.33 - Gross after provisional pricing and streaming impact 1,314 2.79 14.20 0.88 Treatment and refining charges (4) (0.11) - (0.12) Net$ 1,310 $ 2.68 $ 14.20 $ 0.76
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(1)Per ounce measures may not recalculate due to rounding. The change in consolidated sales is due to:
Three Months Ended
2020 vs. 2019
Gold Copper Silver Lead Zinc
(ounces) (pounds) (ounces) (pounds) (pounds) Increase (decrease) in consolidated ounces/pounds sold
$ (502) $
(29)
5 14 (4) -
Decrease (increase) in treatment and refining
charges (6) 2 (16) 2 (21)
$ 12 $ (22) $ 45 $ 10 $ 63
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Six Months Ended June 30,
2020 vs. 2019
Gold Copper Silver Lead Zinc
(ounces) (pounds) (ounces) (pounds) (pounds) Increase (decrease) in consolidated ounces/pounds sold
$ (340) $ (55)
(12) 16 (9) -
Decrease (increase) in treatment and refining
charges (7) 2 (23) (7) (51)
$ 594 $ (65) $ 168 $ 49 $ 140
The increase in gold sales during the three months ended June 30, 2020 , compared
to the same period in 2019, is primarily due to higher average realized gold
prices, partially offset by lower ounces sold due to certain operations being
placed into care and maintenance in addition to the sale of Red Lake and
Kalgoorlie during 2020. The increase in gold sales during the six months ended
June 30, 2020 , compared to the same period in 2019, is primarily due to higher
average realized gold prices and higher volumes sold at the sites acquired as
part of the Newmont Goldcorp transaction driven by six months of operations in
2020 as compared to three months in 2019, partially offset by lower ounces sold
due to certain operations being placed into care and maintenance in addition to
the sale of Red Lake and Kalgoorlie during 2020. For further discussion
regarding changes in volumes, see Results of Consolidated Operations below.
The decreases in copper sales during the three and six months ended June 30,
2020 , compared to the same periods in 2019, are primarily due to copper being
produced as a by-product at Phoenix upon the formation of NGM on July 1, 2019 ,
compared to a co-product for the six months ended June 30, 2019 , and lower
production at Boddington. For further discussion regarding changes in volumes,
see Results of Consolidated Operations below.
The increases in silver, lead and zinc sales during the three and six months
ended June 30, 2020 are associated with increased production at Peñasquito
primarily due to the blockade at Peñasquito in the prior year reducing
production and six months of operations in 2020 as compared to three months in
2019, partially offset by Peñasquito being placed into care and maintenance
during a portion of 2020. See Results of Consolidated Operations below.
The details of our Costs applicable to sales are set forth below. See Note 4 to
our Condensed Consolidated Financial Statements for additional information.
Three Months Ended
June 30, Increase Percent
2020 2019 (decrease) Change
Gold $ 940 $ 1,245 $ (305) (24) %
Copper 25 44 (19) (43)
Silver 35 41 (6) (15)
Lead 13 20 (7) (35)
Zinc 45 16 29 181
$ 1,058 $ 1,366 $ (308) (23) %
Six Months Ended
June 30, Increase Percent
2020 2019 (decrease) Change
Gold $ 2,080 $ 2,180 $ (100) (5) %
Copper 50 87 (37) (43)
Silver 103 41 62 151
Lead 39 20 19 95
Zinc 118 16 102 638
$ 2,390 $ 2,344 $ 46 2 %
The decreases in Costs applicable to sales for gold during the three and six
months ended June 30, 2020 , compared to the same periods in 2019, are primarily
due to lower ounces sold due to certain operations being placed into care and
maintenance in addition to the sale of Red Lake and Kalgoorlie during 2020 and
lower stockpile and leach pad inventory adjustments, partially offset by higher
costs associated with the sites acquired as part of the Newmont Goldcorp
transaction driven by six months of operations in 2020 as compared to three
months in 2019.
The decreases in Costs applicable to sales for copper during the three and six
months ended June 30, 2020 , compared to the same periods in 2019, are primarily
due to copper being produced as a by-product at Phoenix upon the formation of
NGM on July 1 ,
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Table of Contents 2019 compared to a co-product for the six months endedJune 30, 2019 , partially offset by higher mill maintenance costs at Boddington. The decrease in Costs applicable to sales for silver and lead during the three months endedJune 30, 2020 , compared to the same period in 2019, is due to Peñasquito being placed into care and maintenance during a portion of 2020. The increase in Costs applicable to sales for silver and lead during the six months endedJune 30, 2020 , compared to the same period in 2019, is primarily due to increased production at Peñasquito driven by six months of operations in 2020 as compared to three months in 2019, partially offset by Peñasquito being placed into care and maintenance during a portion of 2020. The increases in Costs applicable to sales for zinc during the three and six months endedJune 30, 2020 , compared to the same periods in 2019, are primarily due to the blockade at Peñasquito in the prior year reducing production and six months of operations in 2020 as compared to three months in 2019. For discussion regarding variations in operations, see Results of Consolidated Operations below. The details of our Depreciation and amortization are set forth below. See Note 4 to our Condensed Consolidated Financial Statements for additional information. Three Months Ended June 30, Increase Percent 2020 2019 (decrease) Change Gold$ 445 $ 436 $ 9 2 % Copper 4 10 (6) (60) Silver 25 10 15 150 Lead 9 6 3 50 Zinc 29 9 20 222 Other 16 16 - -$ 528 $ 487 $ 41 8 % Six Months Ended June 30, Increase Percent 2020 2019 (decrease) Change Gold$ 908 $ 728 $ 180 25 % Copper 9 20 (11) (55) Silver 58 10 48 480 Lead 22 6 16 267 Zinc 64 9 55 611 Other 32 26 6 23$ 1,093 $ 799 $ 294 37 % The increases in Depreciation and amortization for gold during the three and six months endedJune 30, 2020 , compared to the same periods in 2019, are primarily due to higher amortization rates from the formation of NGM, increased sales volumes at Peñasquito, andBorden and Quecher Main achieving commercial production in the fourth quarter of 2019. The decreases in Depreciation and amortization for copper for the three and six months endedJune 30, 2020 , compared to the same periods in 2019, are primarily due to copper being produced as a by-product atPhoenix upon the formation of NGM onJuly 1, 2019 . The increases in Depreciation and amortization for silver, lead and zinc during the three and six months endedJune 30, 2020 , compared to the same periods in 2019, are primarily due to the blockade at Peñasquito in the prior year reducing production and six months of operations in 2020 as compared to three months in 2019, partially offset by Peñasquito being placed into care and maintenance during a portion of 2020. For discussion regarding variations in operations, see Results of Consolidated Operations below. Reclamation and remediation decreased by$33 and$25 during the three and six months endedJune 30, 2020 , compared to the same periods in 2019, primarily due to remediation adjustments in the prior year related to updates of project cost estimates at Dawn remediation site and water management cost estimates at Con mine. Exploration expense decreased by$43 and$40 during the three and six months endedJune 30, 2020 , compared to the same periods in 2019, primarily due to suspension of exploration drilling activities due to the COVID-19 pandemic. 48
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Table of Contents Advanced projects, research and development expense decreased by$6 and$6 during the three and six months endedJune 30, 2020 , compared to the same periods in 2019, primarily due to lower spend inNevada following the formation of NGM. The decrease for six months endedJune 30, 2020 , compared to the same period in 2019, was also partially offset by increased spend associated with full potential opportunities inNorth America . General and administrative expense decreased by$9 and$3 during the three and six months endedJune 30, 2020 , compared to the same periods in 2019, primarily due to the progression of integration activities for theNewmont Goldcorp transaction and other cost reduction efforts. The decrease for the six months endedJune 30, 2020 , compared to the same period in 2019, was also partially offset by increased consulting services. General and administrative expense as a percentage of Sales was 3.0% and 2.8% for the three and six months endedJune 30, 2020 , compared to 3.6% and 3.4% in the same periods in 2019. Care and maintenance was$125 and$145 during the three and six months endedJune 30, 2020 , respectively. Care and maintenance represents direct operating costs incurred at sites temporarily placed into care and maintenance as a result of the COVID-19 pandemic. Other expense, net decreased by$78 and$113 during the three and six months endedJune 30, 2020 , compared to the same periods in 2019, primarily due to decreases in transaction costs associated with theNewmont Goldcorp transaction and the Nevada JV Agreement, partially offset by COVID-19 specific costs incurred as a result of the COVID-19 pandemic and higher restructuring and other costs. Gain on asset and investment sales, net was$(1) and$592 during the three and six months endedJune 30, 2020 , respectively, and was$32 and$33 during the three and six months endedJune 30, 2019 , respectively. The change for the three months endedJune 30, 2020 , compared to 2019, is primarily due to the gain on the sale of exploration properties inNorth America in the second quarter of 2019. The change for the six months endedJune 30, 2020 , compared to 2019, is primarily due to the 2020 sales of Kalgoorlie inAustralia , theRed Lake complex inCanada and our investment in Continental. See Note 9 for additional information on asset sales and Note 19 for additional information on investment sales. Other income, net increased by$140 and decreased by$93 during the three and six months endedJune 30, 2020 , respectively, compared to the same periods in 2019. The increase for the three months endedJune 30, 2020 is primarily due to larger increases in the fair value of investments in the current year, partially offset by unrealized foreign exchange losses in the current year compared to unrealized foreign exchange gains in the prior year. The decrease for the six months endedJune 30, 2020 is primarily due to an other-than-temporary impairment of our investment in TMAC and debt extinguishment charges, partially offset by larger increases in the fair value of investments in the current year. Interest expense, net decreased by$4 during the three months endedJune 30, 2020 compared to the same period in 2019 primarily due to lower interest rates as a result of the Company's recent debt refinancing transactions. Interest expense, net increased by$20 during the six months endedJune 30, 2020 compared to the same period in 2019 primarily due to increased debt balances as a result of theNewmont Goldcorp transaction and a decrease in capitalized interest. Income and mining tax expense (benefit) was$164 and$20 , and$141 and$145 during the three and six months endedJune 30, 2020 and 2019, respectively. The effective tax rate is driven by a number of factors and the comparability of our income tax expense for the reported periods will be primarily affected by (i) variations in our income before income taxes; (ii) geographic distribution of that income; (iii) impacts of the changes in tax law; (iv) valuation allowances on tax assets; (v) percentage depletion; (vi) fluctuation in the value ofthe United States dollar and foreign currencies; and (vii) the impact of specific transactions and assessments. As a result, the effective tax rate will fluctuate, sometimes significantly, year to year. This trend is expected to continue in future periods. See Note 11 to the Condensed Consolidated Financial Statements for further discussion of income taxes. 49
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Three Months Ended
June 30, 2020 June 30, 2019
Income Tax Income Tax
Income Effective (Benefit) Income Effective (Benefit)
(Loss)(1) Tax Rate Provision (Loss)(1) Tax Rate Provision
Nevada $ 129 21 % $ 27 (2) $ 75 24 % $ 18 (2)
CC&V 25 12 3 (3) - - - (3)
Corporate & Other (17) 210 (36) (4) (140) 9 (13) (4)
Total US 137 (4) (6) (65) (8) 5
Australia 160 41 66 (5) 128 40 51 (5)
Ghana 110 34 37 76 33 25
Suriname 63 27 17 51 24 12
Peru (21) (33) 7 (6) 29 34 10 (6)
Canada 129 13 17 (7) (33) (33) 11 (7)
Mexico 15 220 33 (8) (177) 38 (68) (8)
Argentina (45) 64 (29) (9) (9) 122 (11) (9)
Other Foreign 2 - - 20 10 2
Rate adjustments - N/A 22 (10) - N/A (17) (10)
Consolidated $ 550 30 % (11) $ 164 $ 20 100 % (11) $ 20 ____________________________
(1)Represents income (loss) from continuing operations by geographic location before income taxes and equity in affiliates. These amounts will not reconcile to the Segment Information for the reasons stated in Note 4. (2)Includes deduction for percentage depletion of$(11) and $- and mining taxes of$12 and$1 , respectively.Nevada includes the Company's 38.5% interest in NGM. (3)Includes deduction for percentage depletion of$(2) and$1 , respectively. (4)Includes valuation allowance of$(34) and$1 , respectively. (5)Includes mining taxes net of associated federal benefit of$18 and$12 , respectively. (6)Includes mining taxes net of associated federal benefit of$2 and$2 , valuation allowance of$9 and$2 , respectively. (7)Includes mining tax net of associated benefit of$1 and$(1) , valuation allowance of$(27) and$(4) , uncertain tax position reserve adjustment of$1 and$8 , and tax impacts from the exposure to fluctuations in foreign currency of$2 and$15 , respectively. (8)Includes mining tax net of associated federal benefit of $- and$10 , valuation allowance of$1 and$2 , uncertain tax position reserve adjustment of$14 and $-, and tax impact from the exposure to fluctuations in foreign currency of$11 and$(29) , respectively. (9)Includes valuation allowance of $- and$(13) , tax impacts from the exposure to fluctuations in foreign currency of$(21) and$5 , respectively. (10)In accordance with applicable accounting rules, the interim provision for income taxes is adjusted to equal the consolidated tax rate. (11)The consolidated effective income tax rate is a function of the combined effective tax rates for the jurisdictions in which we operate. Variations in the relative proportions of jurisdictional income could result in fluctuations to our combined effective income tax rate. 50
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Table of Contents
Six Months Ended
June 30, 2020 June 30, 2019
Income Tax Income Tax
Income Effective (Benefit) Income Effective (Benefit)
(Loss)(1) Tax Rate Provision (Loss)(1) Tax Rate Provision
Nevada $ 267 20 % $ 53 (2) $ 150 19 % $ 28 (2)
CC&V 45 9 4 (3) 3 - - (3)
Corporate & Other (236) 20 (47) (4) (245) 4 (9) (4)
Total US 76 13 10 (92) (21) 19
Australia 857 16 140 (5) 246 41 102 (5)
Ghana 182 34 62 147 33 48
Suriname 152 27 41 126 25 32
Peru (34) (115) 39 (6) 64 41 26 (6)
Canada 12 83 10 (7) (30) (37) 11 (7)
Mexico 124 (91) (113) (8) (177) 38 (68) (8)
Argentina (51) 80 (41) (9) (9) 122 (11) (9)
Other Foreign 11 - - 20 15 3
Rate adjustments - N/A (7) (10) - N/A (17) (10)
Consolidated $ 1,329 11 % (11) $ 141 $ 295 49 % (11) $ 145 ____________________________
(1)Represents income (loss) from continuing operations by geographic location before income taxes and equity in affiliates. These amounts will not reconcile to the Segment Information for the reasons stated in Note 4. (2)Includes deduction for percentage depletion of$(24) and$(15) and mining taxes of$22 and$11 , respectively.Nevada includes the Company's 38.5% interest in NGM. (3)Includes deduction for percentage depletion of$(5) and$1 , respectively. (4)Includes valuation allowance of$(2) and$28 , respectively. (5)Includes mining taxes net of associated federal benefit of$32 and$28 , and valuation allowance of$(148) and $-, respectively. (6)Includes mining taxes net of associated federal benefit of$1 and$2 , valuation allowance of$17 and$4 , and expense related to prior year tax disputes of$28 and $-, respectively. (7)Includes mining tax net of associated benefit of$1 and$(1) , valuation allowance of$9 and$(4) , uncertain tax position reserve adjustment of$(5) and$8 , and tax impacts from the exposure to fluctuations in foreign currency of$(7) and$15 , respectively. (8)Includes mining tax net of associated federal benefit of$3 and$10 , valuation allowance of$(4) and$2 , uncertain tax position reserve adjustment of$(5) and $-, and tax impact from the exposure to fluctuations in foreign currency of$(146) and$(29) , respectively. (9)Includes valuation allowance of $- and$(13) , tax impacts from the exposure to fluctuations in foreign currency of$(31) and$5 , respectively. (10)In accordance with applicable accounting rules, the interim provision for income taxes is adjusted to equal the consolidated tax rate. (11)The consolidated effective income tax rate is a function of the combined effective tax rates for the jurisdictions in which we operate. Variations in the relative proportions of jurisdictional income could result in fluctuations to our combined effective income tax rate. OnMarch 18, 2020 , the Families First Coronavirus Response Act ("FFCR Act"), and onMarch 27, 2020 , the Coronavirus Aid, Relief, and Economic Security Act ("CARES Act") were each enacted in response to the COVID-19 pandemic. The FFCR Act and the CARES Act contain numerous income tax provisions such as the accelerated recoverability of alternative minimum tax credits and relaxing limitations on the deductibility of interest and on the use of net operating losses. The Company has analyzed this legislation and has determined that it has no effect on the income tax expense. However, due to the provision accelerating the recoverability of alternative minimum tax credits, the Company expects to receive a refund of all outstanding alternative minimum tax credits by the end of the calendar year and has now reflected these amounts as an income taxes receivable included in Other current assets as ofJune 30, 2020 . In addition to the FFCR and CARES Acts, governments in various jurisdictions in which the Company operates, passed legislation in response to the COVID-19 pandemic. The Company has evaluated these provisions and determined there is no impact on the income tax expense. Equity income (loss) of affiliates was$29 and$66 during the three and six months endedJune 30, 2020 , respectively, and was$26 and$21 during the three and six months endedJune 30, 2019 , respectively. The year to date increase is primarily due to income of$83 from thePueblo Viejo mine, which was acquired as part of theNewmont Goldcorp transaction. For the three and six months endedJune 30, 2020 , earnings before income taxes and depreciation and amortization related to thePueblo Viejo Mine ("Pueblo Viejo EBITDA") was$82 and$183 , respectively, and was$74 and$74 during the three and six months endedJune 30, 2019 , 51
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Table of Contents respectively. Pueblo Viejo EBITDA is a non-GAAP financial measure. See "Non-GAAP Financial Measures" within Part I, Item 2, Management's Discussion and Analysis. For additional information regarding our Equity income (loss) of affiliates, see Note 12. Net income (loss) from discontinued operations was$(68) and$(83) for the three and six months endedJune 30, 2020 , respectively. The change is primarily due to an increase in the Holt royalty obligation resulting from an increase in the expected gold price and a decrease in the discount rate, partially offset by a deferral of planned production as the Holt operations were placed in care and maintenance by the operator. Net income (loss) from discontinued operations was$(26) and$(52) for the three and six months endedJune 30, 2019 , respectively. The change is primarily due to an increase in the Holt royalty obligation resulting from a decrease in the discount rate and an increase in the expected production and gold price. For additional information regarding our discontinued operations, see Note 13 to our Condensed Consolidated Financial Statements. Net loss (income) attributable to noncontrolling interests from continuing operations was$3 and$5 during the three and six months endedJune 30, 2020 , respectively, and was$25 and$57 during the three and six months endedJune 30, 2019 , respectively. The change is due to net losses at Yanacocha in the current year compared to net income in the prior year. Results of Consolidated OperationsNewmont has developed gold equivalent ounces ("GEO") metrics to provide a comparable basis for analysis and understanding of our operations and performance related to copper, silver, lead and zinc. Gold equivalent ounces are calculated as pounds or ounces produced multiplied by the ratio of the other metals' price to the gold price, using the metal prices in the table below:
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