Newmont announces first quarter 2022 results
Denver--(business wire)--newmont corporation (nyse: nem, tsx: ngt) (newmont or the company) today announced first quarter 2022 results. first quarter 2022 highlights produced 1.34 million attributable ounces of gold and 350 thousand attributable gold equivalent ounces from co-products reported gold cas* of $890 per ounce and aisc* of $1,156 per ounce remain on track to achieve full-year guidance ranges; full-year results continue to be back-half weighted** generated $689 million of cash from continuing operations and $252 million of free cash flow* declared first quarter dividend of $0.55 per share, consistent with the previous quarter; $1 billion share repurchase program to be used opportunistically in 2022, with $475 million remaining*** ended the quarter with $4.3 billion of consolidated cash and $7.3 billion of liquidity with a net debt to adjusted ebitda ratio of 0.3x* credit rating upgraded by s&p global ratings to bbb+ from bbb with a stable outlook advancing profitable near-term projects, including tanami expansion 2, ahafo north and yanacocha sulfides executed on strategy to consolidate ownership in prolific mining districts with acquisition of yanacocha's minority interest stake; increasing ownership in sulfides project to 100 percent through acquisition of buenaventura's 43.65% interest and sumitomo corporation's 5% interest**** published 18th annual sustainability report, a transparent review of environmental, social and governance (esg) performance committed $5 million contribution to support humanitarian efforts in ukraine ranked eleventh on fortune's modern board 25, a list of the most innovative boards of directors among s&p 500 companies; recognized for gender equality, nationality dispersion and board independence "newmont delivered a solid first quarter performance with $1.4 billion in adjusted ebitda as we safely managed through the omicron surge. the strength of our proven operating model and global portfolio in the world's best mining jurisdictions is the foundation of newmont's clear and consistent strategy to create value and improve lives through sustainable and responsible mining. in april, we published our 18th annual sustainability report, which provides a transparent look at our esg performance and the issues and metrics that matter most to our stakeholders. as a values-based organization and the gold sector's recognized sustainability leader, newmont has a long history of leading change in our approach to esg and our core values are fundamental to how we run our business and where we choose to operate." - tom palmer, newmont president and chief executive officer ___________________________ *non-gaap metrics; see pages 12-26 for reconciliations. **see discussion of outlook and cautionary statement at end of release regarding forward-looking statements. ***see cautionary statement at the end of this release, including with respect to future dividends and share buybacks. ****the acquisition of the remaining 5% interest in yanacocha from sumitomo corporation is expected to close in q2 2022. first quarter 2022 financial and production summary q1'22 q4'21 q1'21 average realized gold price ($ per ounce) $ 1,892 $ 1,798 $ 1,751 attributable gold production (million ounces) 1.34 1.62 1.46 gold costs applicable to sales (cas) ($ per ounce) $ 890 $ 802 $ 752 gold all-in sustaining costs (aisc) ($ per ounce) $ 1,156 $ 1,056 $ 1,039 gaap net income (loss) from continuing operations ($ millions) $ 432 $ (61 ) $ 538 adjusted net income ($ millions) $ 546 $ 624 $ 594 adjusted ebitda ($ millions) $ 1,390 $ 1,599 $ 1,457 cash flow from continuing operations ($ millions) $ 689 $ 1,299 $ 841 capital expenditures ($ millions) $ 437 $ 441 $ 399 free cash flow ($ millions) $ 252 $ 858 $ 442 attributable gold production1 decreased 8 percent to 1,344 thousand ounces from the prior year quarter primarily due to lower mill throughput at cc&v, tanami, porcupine and nevada gold mines, lower ore grades milled at peÑasquito, pueblo viejo, ÉlÉonore and porcupine, and a build-up of in-circuit inventory. these decreases were partially offset by higher ore grade milled at boddington and higher production at yanacocha due to the acquisition of buenaventura's 43.65% ownership in february 2022. gold cas totaled $1.2 billion for the quarter. gold cas per ounce2 increased 18 percent to $890 per ounce from the prior year quarter primarily due to lower ounces sold, higher direct operating costs, a draw-down of in-circuit inventory and lower by-product credits at yanacocha. gold aisc per ounce3 increased 11 percent to $1,156 per ounce from the prior year quarter primarily due to higher cas per ounce. attributable gold equivalent ounce (geo) production from other metals increased 10 percent to 350 thousand ounces primarily due to higher ore grade milled at peÑasquito and boddington. cas from other metals totaled $251 million for the quarter. cas per geo2 increased 29 percent to $717 per ounce from the prior year quarter primarily due to higher allocation of costs to other metals at peÑasquito. aisc per geo3 increased 22 percent to $997 per ounce primarily due to higher cas per geo. net income from continuing operations attributable to newmont stockholders was $432 million or $0.54 per diluted share, a decrease of $106 million from the prior year quarter primarily due to lower gold sales volumes, higher cas, a pension settlement charge of $130 million, the loss recognized on the sale of the la zanja equity method investment in 2022 compared to a gain on the sale of tmac in 2021 and higher reclamation and remediation charges. these decreases were partially offset by higher average realized metal prices, unrealized gains on marketable and other equity securities in 2022 compared to unrealized losses in 2021 and lower income tax expense. adjusted net income4 was $546 million or $0.69 per diluted share, compared to $594 million or $0.74 per diluted share in the prior year quarter. primary adjustments to first quarter net income include pension settlement charges, changes in the fair value of investments, the loss recognized on the sale of the la zanja equity method investment, reclamation and remediation charges, settlement costs, a voluntary contribution made to support humanitarian efforts in ukraine, and valuation allowance and other tax adjustments. adjusted ebitda5 decreased 5 percent to $1.4 billion for the quarter, compared to $1.5 billion for the prior year quarter. revenue increased 5 percent from the prior year quarter to $3.0 billion primarily due to higher average realized gold prices and higher copper sales volumes, which were partially offset by lower gold sales volumes. average realized price6 for gold was $1,892, an increase of $141 per ounce over the prior year quarter. average realized gold price includes $1,883 per ounce of gross price received, the favorable impact of $17 per ounce mark-to-market on provisionally-priced sales and reductions of $8 per ounce for treatment and refining charges. capital expenditures7 increased 10 percent from the prior year quarter to $437 million primarily due to higher development capital spend, which was partially offset by lower sustaining capital spend. development capital expenditures in 2022 primarily include advancing tanami expansion 2, yanacocha sulfides, ahafo north, pamour and cerro negro district expansion 1. consolidated operating cash flow from continuing operations decreased 18 percent from the prior year quarter to $689 million primarily due to lower gold sales volumes and an increase in accounts receivable related to timing of cash receipts. these decreases were partially offset by higher average realized metal prices. free cash flow8 also decreased to $252 million primarily due to lower operating cash flow and higher development capital expenditures as described above. balance sheet and liquidity ended the quarter with $4.3 billion of consolidated cash and approximately $7.3 billion of liquidity; reported net debt to adjusted ebitda of 0.3x9. nevada gold mines (ngm) attributable gold production was 288 thousand ounces, with cas of $899 per ounce and aisc of $1,086 per ounce for the first quarter. ngm ebitda10 was $278 million. pueblo viejo (pv) attributable gold production was 69 thousand ounces for the quarter. pueblo viejo ebitda10 was $80 million and cash distributions received for the company's equity method investment totaled $49 million in the first quarter. covid update newmont continues to maintain wide-ranging protective measures for its workforce and neighboring communities, including screening, physical distancing, deep cleaning and avoiding exposure for at-risk individuals. the company incurred incremental covid specific costs of $17 million during the quarter for activities such as additional health and safety procedures, increased transportation and distributions from the newmont global community support fund. the majority of the additional incremental covid specific costs have not been adjusted from our non-gaap metrics. projects update11 newmont’s project pipeline supports stable production with improving margins and mine life. newmont's 2022 and longer-term outlook includes current development capital costs and production related to tanami expansion 2, ahafo north, yanacocha sulfides, pamour and cerro negro district expansion 1. additional projects not listed below represent incremental improvements to the company's outlook. tanami expansion 2 (australia) secures tanami’s future as a long-life, low-cost producer with potential to extend mine life beyond 2040 through the addition of a 1,460 meter hoisting shaft and supporting infrastructure to process 3.3 million tonnes per year and provide a platform for future growth. the expansion is expected to increase average annual gold production by approximately 150,000 to 200,000 ounces per year for the first five years and is expected to reduce operating costs by approximately 10 percent. capital costs for the project are estimated to be between $850 and $950 million with a commercial production date in 2024. development costs (excluding capitalized interest) since approval were $333 million, of which $49 million related to the first quarter of 2022. ahafo north (africa) expands our existing footprint in ghana with four open pit mines and a stand-alone mill located approximately 30 kilometers from the company’s ahafo south operations. the project is expected to add between 275,000 and 325,000 ounces per year with all-in sustaining costs between $600 to $700 per ounce for the first five full years of production (2024-2028). capital costs for the project are estimated to be between $750 and $850 million with a construction completion date in late 2023 and commercial production in 2024. ahafo north is the best unmined gold deposit in west africa with approximately 3.5 million ounces of reserves and more than 1 million ounces of measured, indicated and inferred resources and significant upside potential to extend beyond ahafo north’s current 13-year mine life. development costs (excluding capitalized interest) since approval were $95 million, of which $28 million related to the first quarter of 2022. yanacocha sulfides12 (south america) will develop the first phase of sulfide deposits and an integrated processing circuit, including an autoclave to produce 45% gold, 45% copper and 10% silver. the project is expected to add average annual production of 525,000 gold equivalent ounces per year with all-in sustaining costs between $700 and $800 per ounce for the first five full years of production (2027-2031). total capital costs for the project are estimated at $2.5 billion, with an investment decision expected in late 2022 and a three year development period. the first phase focuses on developing the yanacocha verde and chaquicocha deposits to extend yanacocha’s operations beyond 2040 with second and third phases having the potential to extend life for multiple decades. pamour (north america) extends the life of porcupine and maintains production beginning in 2024. the project will optimize mill capacity, adding volume and supporting high grade ore from borden and hoyle pond, while supporting further exploration in a highly prospective and proven mining district. an investment decision is expected in the second half of 2022 with estimated capital costs between $350 and $450 million. cerro negro district expansion 1 (south america) includes the simultaneous development of the marianas and eastern districts to extend the mine life of cerro negro beyond 2030. the project is expected to improve production to above 350,000 ounces beginning in 2024, while improving all-in sustaining costs to between $800 and $900 per ounce. capital costs for the project are estimated to be approximately $300 million. this project provides a platform for further exploration and future growth through additional expansions. ________________________________________________ 1 attributable gold production for the first quarter 2022 includes 69 thousand ounces from the company’s equity method investment in pueblo viejo (40%). 2 non-gaap measure. see end of this release for reconciliation to costs applicable to sales. 3 non-gaap measure. see end of this release for reconciliation to costs applicable to sales. 4 non-gaap measure. see end of this release for reconciliation to net income (loss) attributable to newmont stockholders. 5 non-gaap measure. see end of this release for reconciliation to net income (loss) attributable to newmont stockholders. 6 non-gaap measure. see end of this release for reconciliation to sales. 7 capital expenditures refers to additions to property plant and mine development from the condensed consolidated statements of cash flows. 8 non-gaap measure. see end of this release for reconciliation to net cash provided by operating activities. 9 non-gaap measure. see end of this release for reconciliation. 10 non-gaap measure. see end of this release for reconciliation. 11 all-in sustaining costs are presented using a $1,200/oz gold price assumption. project estimates remain subject to change based upon uncertainties, including future impacts covid-19 and other cost pressures, supply chain disruptions and availabilities, commodity price volatility and other factors, which may impact estimated capital expenditures, aisc and timing of projects. see end of this release for cautionary statement regarding forward-looking statements. 12 consolidated basis. outlook newmont’s outlook reflects increasing gold production and ongoing investment in its operating assets and most promising growth prospects. outlook includes current development capital costs and production related to tanami expansion 2, ahafo north, yanacocha sulfides, pamour at porcupine and cerro negro district expansion 1. newmont continues to develop our mine plan utilizing a $1,200 per ounce gold price assumption. however, due to sustained higher gold prices over the last two years, newmont’s 2022 outlook assumes an $1,800 per ounce revenue gold price for cas and aisc to reflect higher costs from inflation, royalties and production taxes. in 2022, an additional 5% of cost escalation is incorporated into our direct operating costs related to labor, energy, and material and supplies. 2022 and longer-term outlook assumes a $30 per ounce impact from production taxes and royalties attributable to higher gold prices. outlook assumes operations continue without major covid-related interruptions. newmont continues to maintain wide-ranging protective measures for its workforce and neighboring communities, including screening, physical distancing, deep cleaning and avoiding exposure for at-risk individuals, which are expected to impact aisc per gold equivalent ounce by approximately $10 per ounce. if at any point the company determines that continuing operations poses an increased risk to our workforce or host communities, it will reduce operational activities up to, and including, care and maintenance and management of critical environmental systems. please see the cautionary statement for additional information. for a more detailed discussion and outlook presented at a $1,200 per ounce gold price assumption, see the company’s 2022 and longer-term outlook released on december 2, 2021, available on www.newmont.com. the attributable site-level production for yanacocha and attributable development capital guidance below accounts for the acquisition of buenaventura's 43.65% interest in yanacocha, as announced on february 8, 2022. all other guidance metrics remain unchanged from the company's 2022 and longer-term outlook as announced on december 2, 2021. five year outlook (+/- 5%): $1,800/oz gold price assumption guidance metric ($m) (+/- 5%) 2022e 2023e 2024e 2025e 2026e gold production* (moz) 6.2 6.0 - 6.6 6.2 - 6.8 6.2 - 6.8 6.2 - 6.8 co-product production** (mozs) 1.3 1.4 - 1.6 1.4 - 1.6 1.4 - 1.6 1.4 - 1.6 total geo production (mozs) 7.5 7.5 - 8.1 7.7 - 8.3 7.7 - 8.3 7.7 - 8.3 gold cas ($/oz) 820 740 - 840 700 - 800 700 - 800 700 - 800 co-product geo cas ($/oz) 675 600 - 700 500 - 600 500 - 600 500 - 600 total geo cas ($/oz) 800 710 - 810 640 - 740 640 - 740 640 - 740 gold aisc ($/oz) 1,050 980 - 1,080 920 - 1,020 920 - 1,020 920 - 1,020 co-product geo aisc ($/oz) 975 900 - 1,000 800 - 900 800 - 900 800 - 900 total geo aisc ($/oz) 1,030 950 - 1,050 880 - 980 880 - 980 880 - 980 sustaining capital* ($m) 925 825 - 1,025 825 - 1,025 825 - 1,025 825 - 1,025 development capital* ($m) 1,400 1,300 - 1,500 1,100 - 1,300 400 - 600 100 - 300 total capital* ($m) 2,325 2,225 - 2,425 2,025 - 2,225 1,325 - 1,525 1,025 - 1,225 *attributable basis; **attributable co-product gold equivalent ounces; includes copper, zinc, silver and lead consolidated expense outlook guidance metric ($m) (+/- 5%) 2022e exploration & advanced projects 450 general & administrative 260 interest expense 225 depreciation & amortization 2,300 adjusted tax rate a,b 30%-34% a the adjusted tax rate excludes certain items such as tax valuation allowance adjustments. b assuming average prices of $1,800 per ounce for gold, $3.25 per pound for copper, $23.00 per ounce for silver, $0.95 per pound for lead, and $1.15 per pound for zinc and achievement of current production and sales volumes and cost estimates, we estimate our consolidated adjusted effective tax rate related to continuing operations for 2022 will be between 30%-34%. 2022 site outlooka consolidated production (koz) attributable production (koz) consolidated cas ($/oz) consolidated all-in sustaining costs b ($/oz) consolidated sustaining capital expenditures ($m) consolidated development capital expenditures ($m) cc&v 210 210 975 1,200 35 — ÉlÉonore 275 275 975 1,150 30 — peÑasquito 475 475 650 850 125 — porcupine 340 340 875 1,025 40 100 musselwhite 200 200 875 1,150 50 — other north america — — — — — — cerro negro 260 260 875 1,095 50 75 yanacochac 225 210 1,100 1,375 25 475 merianc 465 350 750 860 50 — pueblo viejod — 285 — — — — other south america — — — — — — boddington 900 900 750 860 95 10 tanami 500 500 625 960 125 275 other australia — — — — 15 — ahafo 650 650 875 1,000 85 30 akyem 400 400 725 925 40 10 ahafo north — — — — — 340 other africa — — — — — — nevada gold minese 1,250 1,250 825 1,050 245 70 corporate/other — — — — — — peÑasquito - co-products (geo)f 1,000 1,000 670 940 boddington - co-products (geo)f 300 300 740 890 peÑasquito - silver (moz) 29 29 peÑasquito - lead (mlbs) 150 150 peÑasquito - zinc (mlbs) 350 350 boddington - copper (mlbs) 110 110 a 2022 outlook projections are considered forward-looking statements and represent management’s good faith estimates or expectations of future production results as of december 2, 2021. outlook is based upon certain assumptions, including, but not limited to, metal prices, oil prices, certain exchange rates and other assumptions. for example, 2022 outlook assumes $1,800/oz au, $3.25/lb cu, $23.00/oz ag, $1.15/lb zn, $0.95/lb pb, $0.75 usd/aud exchange rate, $0.80 usd/cad exchange rate and $60/barrel wti. production, cas, aisc and capital estimates exclude projects that have not yet been approved, except for yanacocha sulfides, pamour and cerro negro district expansion 1 which are included in outlook. the potential impact on inventory valuation as a result of lower prices, input costs, and project decisions are not included as part of this outlook. assumptions used for purposes of outlook may prove to be incorrect and actual results may differ from those anticipated, including variation beyond a +/-5% range. outlook cannot be guaranteed. as such, investors are cautioned not to place undue reliance upon outlook and forward-looking statements as there can be no assurance that the plans, assumptions or expectations upon which they are placed will occur. amounts may not recalculate to totals due to rounding. the attributable production guidance accounts for the acquisition of buenaventura's 43.65% interest in yanacocha, as announced on february 8, 2022. all other guidance metrics remain unchanged from the company's outlook as announced on december 2, 2021. see cautionary at the end of this release. b all-in sustaining costs (aisc) as used in the company’s outlook is a non-gaap metric; see below for further information and reconciliation to consolidated 2022 cas outlook. c consolidated production for yanacocha and merian is presented on a total production basis for the mine site; attributable production represents a 95% interest for yanacocha and a 75% interest for merian. d attributable production includes newmont’s 40% interest in pueblo viejo, which is accounted for as an equity method investment. e represents the ownership interest in the nevada gold mines (ngm) joint venture. ngm is owned 38.5% by newmont and owned 61.5% and operated by barrick. 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. f gold equivalent ounces (geo) are calculated as pounds or ounces produced multiplied by the ratio of the other metal’s price to the gold price, using gold ($1,200/oz.), copper ($3.25/lb.), silver ($23.00/oz.), lead ($0.95/lb.), and zinc ($1.15/lb.) pricing. three months ended march 31, operating results 2022 2021 % change attributable sales (koz) attributable gold ounces sold (1) 1,291 1,361 (5 ) % attributable gold equivalent ounces sold 350 327 7 % average realized price ($/oz, $/lb) average realized gold price $ 1,892 $ 1,751 8 % average realized copper price $ 4.84 $ 4.20 15 % average realized silver price $ 20.36 $ 19.73 3 % average realized lead price $ 1.06 $ 0.88 20 % average realized zinc price $ 1.75 $ 1.06 65 % attributable production (koz) north america 309 413 (25 ) % south america 198 174 14 % australia 282 269 5 % africa 198 205 (3 ) % nevada 288 303 (5 ) % total gold (excluding equity method investments) 1,275 1,364 (7 ) % pueblo viejo (40%) (2) 69 91 (24 ) % total gold 1,344 1,455 (8 ) % north america 299 285 5 % australia 51 32 59 % total gold equivalent ounces 350 317 10 % cas consolidated ($/oz, $/geo) north america $ 995 $ 736 35 % south america $ 921 $ 791 16 % australia $ 764 $ 750 2 % africa $ 871 $ 758 15 % nevada $ 899 $ 745 21 % total gold $ 890 $ 752 18 % total gold (by-product) $ 697 $ 605 15 % north america $ 695 $ 518 34 % australia $ 833 $ 935 (11 ) % total gold equivalent ounces $ 717 $ 555 29 % aisc consolidated ($/oz, $/geo) north america $ 1,230 $ 957 29 % south america $ 1,123 $ 1,063 6 % australia $ 974 $ 1,104 (12 ) % africa $ 1,106 $ 950 16 % nevada $ 1,086 $ 868 25 % total gold $ 1,156 $ 1,039 11 % total gold (by-product) $ 1,036 $ 953 9 % north america $ 954 $ 763 25 % australia $ 976 $ 1,404 (30 ) % total gold equivalent ounces $ 997 $ 819 22 % (1) attributable gold ounces from the pueblo viejo mine, an equity method investment, are not included in attributable gold ounces sold. (2) represents attributable gold from pueblo viejo and does not include the company's other equity method investments. attributable gold ounces produced at pueblo viejo are not included in attributable gold ounces sold, as noted in footnote 1. income and expenses of equity method investments are included in equity income (loss) of affiliates. condensed consolidated statements of operations (unaudited, in millions except per share) three months ended march 31, 2022 2021 sales $ 3,023 $ 2,872 costs and expenses costs applicable to sales (1) 1,435 1,247 depreciation and amortization 547 553 reclamation and remediation 61 46 exploration 38 35 advanced projects, research and development 44 31 general and administrative 64 65 other expense, net 35 39 2,224 2,016 other income (expense): other income (loss), net (109 ) (39 ) interest expense, net of capitalized interest (62 ) (74 ) (171 ) (113 ) income (loss) before income and mining tax and other items 628 743 income and mining tax benefit (expense) (214 ) (235 ) equity income (loss) of affiliates 39 50 net income (loss) from continuing operations 453 558 net income (loss) from discontinued operations 16 21 net income (loss) 469 579 net loss (income) attributable to noncontrolling interests (21 ) (20 ) net income (loss) attributable to newmont stockholders $ 448 $ 559 net income (loss) attributable to newmont stockholders: continuing operations $ 432 $ 538 discontinued operations 16 21 $ 448 $ 559 weighted average common shares (millions): basic 793 801 effect of employee stock-based awards 1 1 diluted 794 802 net income (loss) attributable to newmont stockholders per common share basic: continuing operations $ 0.54 $ 0.67 discontinued operations 0.02 0.03 $ 0.56 $ 0.70 diluted: continuing operations $ 0.54 $ 0.67 discontinued operations 0.02 0.03 $ 0.56 $ 0.70 (1) excludes depreciation and amortization and reclamation and remediation. condensed consolidated statements of cash flows (unaudited, in millions) three months ended march 31, 2022 2021 operating activities: net income (loss) $ 469 $ 579 non-cash adjustments: depreciation and amortization 547 553 net loss (income) from discontinued operations (16 ) (21 ) charges from pension settlement 130 — reclamation and remediation 57 43 deferred income taxes (41 ) (25 ) change in fair value of investments (39 ) 110 stock-based compensation 18 17 other non-cash adjustments 29 (90 ) net change in operating assets and liabilities (465 ) (325 ) net cash provided by (used in) operating activities of continuing operations 689 841 net cash provided by (used in) operating activities of discontinued operations 5 — net cash provided by (used in) operating activities 694 841 investing activities: additions to property, plant and mine development (437 ) (399 ) contributions to equity method investees (52 ) (27 ) payment relating to sale of la zanja (45 ) — return of investment from equity method investees 13 18 proceeds from asset and investment sales 9 63 purchases of investments (4 ) (4 ) other (3 ) (1 ) net cash provided by (used in) investing activities (519 ) (350 ) financing activities: dividends paid to common stockholders (436 ) (441 ) acquisition of noncontrolling interests (300 ) — repayment of debt (89 ) — distributions to noncontrolling interests (59 ) (54 ) payments for withholding of employee taxes related to stock-based compensation (36 ) (28 ) funding from noncontrolling interests 32 30 payments on lease and other financing obligations (19 ) (18 ) other 12 — net cash provided by (used in) financing activities (895 ) (511 ) effect of exchange rate changes on cash, cash equivalents and restricted cash 3 (2 ) net change in cash, cash equivalents and restricted cash (717 ) (22 ) cash, cash equivalents and restricted cash at beginning of period 5,093 5,648 cash, cash equivalents and restricted cash at end of period $ 4,376 $ 5,626 condensed consolidated statements of cash flows (unaudited, in millions) three months ended march 31, 2022 2021 reconciliation of cash, cash equivalents and restricted cash: cash and cash equivalents $ 4,272 $ 5,518 restricted cash included in other current assets 50 2 restricted cash included in other non-current assets 54 106 total cash, cash equivalents and restricted cash $ 4,376 $ 5,626 newmont corporation condensed consolidated balance sheets (unaudited, in millions) at march 31, 2022 at december 31, 2021 assets cash and cash equivalents $ 4,272 $ 4,992 trade receivables 413 337 investments 72 82 inventories 956 930 stockpiles and ore on leach pads 800 857 other current assets 546 498 current assets 7,059 7,696 property, plant and mine development, net 24,070 24,124 investments 3,335 3,243 stockpiles and ore on leach pads 1,790 1,775 deferred income tax assets 227 269 goodwill 2,771 2,771 other non-current assets 661 686 total assets $ 39,913 $ 40,564 liabilities accounts payable $ 491 $ 518 employee-related benefits 366 386 income and mining taxes payable 273 384 lease and other financing obligations 104 106 debt — 87 other current liabilities 1,183 1,173 current liabilities 2,417 2,654 debt 5,566 5,565 lease and other financing obligations 540 544 reclamation and remediation liabilities 5,848 5,839 deferred income tax liabilities 2,045 2,144 employee-related benefits 375 439 silver streaming agreement 892 910 other non-current liabilities 599 608 total liabilities 18,282 18,703 contingently redeemable noncontrolling interest — 48 equity common stock 1,278 1,276 treasury stock (236 ) (200 ) additional paid-in capital 17,312 17,981 accumulated other comprehensive income (loss) (12 ) (133 ) retained earnings 3,107 3,098 newmont stockholders' equity 21,449 22,022 noncontrolling interests 182 (209 ) total equity 21,631 21,813 total liabilities and equity $ 39,913 $ 40,564 non-gaap financial measures non-gaap financial measures are intended to provide additional information only and do not have any standard meaning prescribed by gaap. these measures should not be considered in isolation or as a substitute for measures of performance prepared in accordance with gaap. unless otherwise noted, we present the non-gaap financial measures of our continuing operations in the tables below. 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 others to understand the results of the continuing operations of the company and its direct and indirect subsidiaries relating to the sale of products, by excluding certain items that have a disproportionate impact on our results for a particular period. adjustments to continuing operations are presented before tax and net of our partners’ noncontrolling interests, when applicable. the tax effect of adjustments is presented in the tax effect of adjustments line and is calculated using the applicable regional tax rate. 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 march 31, 2022 per share data (1) basic diluted net income (loss) attributable to newmont stockholders $ 448 $ 0.56 $ 0.56 net loss (income) attributable to newmont stockholders from discontinued operations (16 ) (0.02 ) (0.02 ) net income (loss) attributable to newmont stockholders from continuing operations 432 0.54 0.54 pension settlement (2) 130 0.16 0.16 change in fair value of investments (3) (39 ) (0.05 ) (0.05 ) (gain) loss on asset and investment sales (4) 35 0.04 0.04 reclamation and remediation charges (5) 13 0.02 0.02 settlement costs (6) 13 0.02 0.02 restructuring and severance (7) 1 — — tax effect of adjustments (8) (37 ) (0.05 ) (0.05 ) valuation allowance and other tax adjustments (9) (2 ) 0.01 0.01 adjusted net income (loss) $ 546 $ 0.69 $ 0.69 weighted average common shares (millions): (10) 793 794 (1) per share measures may not recalculate due to rounding. (2) pension settlement, included in other income (loss), net, represents pension settlement charges in 2022 related to the annuitization of certain defined benefit plans. for further information, refer to note 7 of the condensed consolidated financial statements. (3) change in fair value of investments, included in other income (loss), net, primarily represents unrealized gains and losses related to the company's investment in current and non-current marketable and other equity securities. for further information regarding our investments, refer to note 10 of the condensed consolidated financial statements. (4) (gain) loss on asset and investment sales, included in other income (loss), net, primarily represents the loss recognized on the sale of the la zanja equity method investment. for further information, refer to note 7 of the condensed consolidated financial statements. (5) reclamation and remediation charges, included in reclamation and remediation, represent revisions to reclamation and remediation plans at the company's former operating properties and historic mining operations that have entered the closure phase and have no substantive future economic value. refer to note 5 of the condensed consolidated financial statement for further information. (6) settlement costs, included in other expense, net, primarily are comprised of legal settlement and a voluntary contribution made to support humanitarian efforts in ukraine. (7) restructuring and severance, included in other expense, net, primarily represents severance and related costs associated with significant organizational or operating model changes implemented by the company. (8) the tax effect of adjustments, included in income and mining tax benefit (expense), represents the tax effect of adjustments in footnotes (2) through (7), as described above, and are calculated using the applicable regional tax rate. (9) valuation allowance and other tax adjustments, included in income and mining tax benefit (expense), is recorded for items such as foreign tax credits, alternative minimum tax credits, capital losses, disallowed foreign losses, and the effects of changes in foreign currency exchange rates on deferred tax assets and deferred tax liabilities. the adjustment for the three months ended march 31, 2022 reflects the net increase or (decrease) to net operating losses, capital losses, tax credit carryovers, and other deferred tax assets subject to valuation allowance of $12, the effects of changes in foreign exchange rates on deferred tax assets and liabilities of $(3), net reductions to the reserve for uncertain tax positions of $(12), and other tax adjustments of $1. (10) adjusted net income (loss) per diluted share is calculated using diluted common shares in accordance with u.s. gaap. three months ended march 31, 2021 per share data (1) basic diluted net income (loss) attributable to newmont stockholders $ 559 $ 0.70 $ 0.70 net loss (income) attributable to newmont stockholders from discontinued operations (21 ) (0.03 ) (0.03 ) net income (loss) attributable to newmont stockholders from continuing operations 538 0.67 0.67 change in fair value of investments (2) 110 0.14 0.14 gain (loss) on asset and investment sales (3) (43 ) (0.05 ) (0.05 ) reclamation and remediation charges (4) 10 0.01 0.01 restructuring and severance, net (5) 4 — — settlement costs (6) 3 — — covid-19 specific costs (7) 1 — — impairment of long-lived and other assets (8) 1 — — tax effect of adjustments (9) (19 ) (0.02 ) (0.02 ) valuation allowance and other tax adjustments, net (10) (11 ) (0.01 ) (0.01 ) adjusted net income (loss) $ 594 $ 0.74 $ 0.74 weighted average common shares (millions): (11) 801 802 (1) per share measures may not recalculate due to rounding. (2) change in fair value of investments, included in other income (loss), net, primarily represents unrealized gains and losses on marketable and other equity securities and our investment instruments. for further information regarding our investments, refer to note 10 of the condensed consolidated financial statements. (3) (gain) loss on asset and investment sales, included in other income (loss), net, primarily represents a gain on the sale of tmac. for further information, refer to note 7 of the condensed consolidated financial statements. (4) reclamation and remediation charges, included in reclamation and remediation, represent revisions to reclamation and remediation plans at the company's former operating properties and historic mining operations that have entered the closure phase and have no substantive future economic value. refer to note 5 of the condensed consolidated financial statements for further information. (5) restructuring and severance, net, included in other expense, net, primarily represents severance and related costs associated with significant organizational or operating model changes implemented by the company. total amount is presented net of income (loss) attributable to noncontrolling interests of $(1). (6) settlement costs, included in other expense, net, primarily represents certain costs associated with legal and other settlements. (7) covid-19 specific costs, included in other expense, net, primarily includes amounts distributed from the newmont global community support fund to help host communities, governments and employees combat the covid-19 pandemic. adjusted net income (loss) has not been adjusted for $21 of incremental covid-19 costs incurred as a result of actions taken to protect against the impacts of the covid-19 pandemic at our operational sites. refer to note 6 of the condensed consolidated financial statements for further information. (8) impairment of long-lived and other assets, included in other expense, net, represents non-cash write-downs of various assets that are no longer in use and materials and supplies inventories. (9) the tax effect of adjustments, included in income and mining tax benefit (expense), represents the tax effect of adjustments in footnotes (2) through (8), as described above, and are calculated using the applicable regional tax rate. (10) valuation allowance and other tax adjustments, net, included in income and mining tax benefit (expense), is recorded for items such as foreign tax credits, alternative minimum tax credits, capital losses, disallowed foreign losses, and the effects of changes in foreign currency exchange rates on deferred tax assets and deferred tax liabilities. the adjustment is due to a net increase or (decrease) to capital losses, tax credit carryovers and other deferred tax assets subject to valuation allowance of $21, the effects of changes in foreign exchange rates on deferred tax assets and liabilities of $(28), and other tax adjustments of $(2). total amount is presented net of income (loss) attributable to noncontrolling interests of $(2). (11) adjusted net income (loss) per diluted share is calculated using diluted common shares, which are calculated in accordance with u.s. gaap. earnings before interest, taxes, depreciation and amortization and adjusted earnings before interest, taxes, depreciation and amortization management uses ebitda and 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 do 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 march 31, 2022 2021 net income (loss) attributable to newmont stockholders $ 448 $ 559 net income (loss) attributable to noncontrolling interests 21 20 net loss (income) from discontinued operations (16 ) (21 ) equity loss (income) of affiliates (39 ) (50 ) income and mining tax expense (benefit) 214 235 depreciation and amortization 547 553 interest expense, net of capitalized interest 62 74 ebitda $ 1,237 $ 1,370 adjustments: pension settlement (1) 130 — change in fair value of investments (2) (39 ) 110 (gain) loss on asset and investment sales (3) 35 (43 ) reclamation and remediation charges (4) 13 10 settlement costs (5) 13 3 restructuring and severance (6) 1 5 impairment of long-lived and other assets (7) — 1 covid-19 specific costs (8) — 1 adjusted ebitda (9) $ 1,390 $ 1,457 (1) pension settlement, included in other income (loss), net, represents pension settlement charges in 2022 related to the annuitization of certain defined benefit plans. for further information, refer to note 7 of the condensed consolidated financial statements. (2) change in fair value of investments, included in other income (loss), net, primarily represents unrealized gains and losses related to the company's investments in current and non-current marketable and other equity securities. for further information regarding our investments, refer to note 10 of the condensed consolidated financial statements. (3) (gain) loss on asset and investment sales, included in other income (loss), net, primarily represents the loss recognized on the sale of the la zanja equity method investment in 2022 and a gain on the sale of tmac in 2021. for further information, refer to note 7 of the condensed consolidated financial statements. (4) reclamation and remediation charges, included in reclamation and remediation, represent revisions to reclamation and remediation plans at the company's former operating properties and historic mining operations that have entered the closure phase and have no substantive future economic value. refer to note 5 of the condensed consolidated financial statement for further information. (5) settlement costs, included in other expense, net, are primarily comprised of a legal settlement and a voluntary contribution made to support humanitarian efforts in ukraine in 2022. (6) restructuring and severance, included in other expense, net, primarily represents severance and related costs associated with significant organizational or operating model changes implemented by the company for all periods presented. (7) impairment of long-lived and other assets, included in other expense, net, represents non-cash write-downs of various assets that are no longer in use and materials and supplied inventories. (8) covid-19 specific costs, included in other expense, net, primarily include amounts distributed from newmont global community support fund to help host communities, governments and employees combat the covid-19 pandemic. (9) adjusted ebitda has not been adjusted for $17 and $21 of incremental covid-19 costs incurred as a result of actions taken to protect against the impacts of the covid-19 pandemic at our operational sites for the three months ended march 31, 2022 and 2021, respectively. additionally, the company uses pueblo viejo ebitda as a non-gaap measure to evaluate the operating performance of its investment in the pueblo viejo mine. pueblo viejo ebitda does not represent, and should not be considered an alternative to, equity income (loss) of affiliates, as defined by gaap, and does not necessarily indicate whether cash distributions from pueblo viejo will match pueblo viejo ebitda or earnings from affiliates. although the company has the ability to exert significant influence, it does not have direct control over the operations or resulting revenues and expenses, nor does it proportionately consolidate its investment in pueblo viejo. the company believes that pueblo viejo ebitda provides useful information to investors and others in understanding and evaluating the operating results of its investment in pueblo viejo, in the same manner as management and the board of directors. equity income (loss) of affiliates is reconciled to pueblo viejo ebitda as follows: three months ended march 31, 2022 2021 equity income (loss) of affiliates $ 39 $ 50 equity (income) loss of affiliates, excluding pueblo viejo (1) (4 ) — equity income (loss) of affiliates, pueblo viejo (1) 35 50 reconciliation of pueblo viejo on attributable basis: income and mining tax expense (benefit) 26 47 depreciation and amortization 19 20 pueblo viejo ebitda $ 80 $ 117 (1) refer to note 10 of the condensed consolidated financial statements. the company uses ngm ebitda as a non-gaap measure to evaluate the operating performance of its investment in nevada gold mines (ngm). ngm ebitda does not represent, and should not be considered an alternative to, income (loss) before income and mining tax and other items, as defined by gaap, and does not necessarily indicate whether cash distributions from ngm will match ngm ebitda. although the company has the ability to exert significant influence and proportionally consolidates its 38.5% interest in ngm, it does not have direct control over the operations or resulting revenues and expenses of its investment in ngm. the company believes that ngm ebitda provides useful information to investors and others in understanding and evaluating the operating results of its investment in ngm, in the same manner as management and the board of directors. income (loss) before income and mining tax and other items is reconciled to ngm ebitda as follows: three months ended march 31, 2022 2021 income (loss) before income and mining tax and other items, ngm (1) $ 153 $ 167 depreciation and amortization (1) 125 127 ngm ebitda $ 278 $ 294 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 (used in) operating activities less net cash provided by (used in) operating activities of discontinued operations less additions to property, plant and mine development as presented on the condensed consolidated statements of cash flows. 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 flows. the following table sets forth a reconciliation of free cash flow, a non-gaap financial measure, to net cash provided by (used in) 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 provided by (used in) investing activities and net cash provided by (used in) financing activities. three months ended march 31, 2022 2021 net cash provided by (used in) operating activities $ 694 $ 841 less: net cash used in (provided by) operating activities of discontinued operations (5 ) — net cash provided by (used in) operating activities of continuing operations 689 841 less: additions to property, plant and mine development (437 ) (399 ) free cash flow $ 252 $ 442 net cash provided by (used in) investing activities (1) $ (519 ) $ (350 ) net cash provided by (used in) financing activities $ (895 ) $ (511 ) (1) net cash provided by (used in) investing activities includes additions to property, plant and mine development, which is included in the company’s computation of free cash flow. attributable free cash flow management uses attributable free cash flow as a non-gaap measure to analyze cash flows generated from operations that are attributable to the company. attributable free cash flow is net cash provided by (used in) operating activities after deducting net cash flows from operations attributable to noncontrolling interests less net cash provided by (used in) operating activities of discontinued operations after deducting net cash flows from discontinued operations attributable to noncontrolling interests less additions to property, plant and mine development after deducting property, plant and mine development attributable to noncontrolling interests. the company believes that attributable free cash flow is useful as one of the bases for comparing the company’s performance with its competitors. although attributable 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 attributable free cash flow is not necessarily comparable to such other similarly titled captions of other companies. the presentation of non-gaap attributable free cash flow is not meant to be considered in isolation or as an alternative to net income attributable to newmont stockholders as an indicator of the company’s performance, or as an alternative to net cash provided by (used in) 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 attributable 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 attributable free cash flow as a measure that provides supplemental information to the company’s condensed consolidated statements of cash flows. the following tables set forth a reconciliation of attributable free cash flow, a non-gaap financial measure, to net cash provided by (used in) operating activities, which the company believes to be the gaap financial measure most directly comparable to attributable free cash flow, as well as information regarding net cash provided by (used in) investing activities and net cash provided by (used in) financing activities. three months ended march 31, 2022 consolidated attributable to noncontrolling interests (1) attributable to newmont stockholders net cash provided by (used in) operating activities $ 694 $ (33 ) $ 661 less: net cash used in (provided by) operating activities of discontinued operations (5 ) — (5 ) net cash provided by (used in) operating activities of continuing operations 689 (33 ) 656 less: additions to property, plant and mine development (2) (437 ) 18 (419 ) free cash flow $ 252 $ (15 ) $ 237 net cash provided by (used in) investing activities (3) $ (519 ) net cash provided by (used in) financing activities $ (895 ) (1) adjustment to eliminate a portion of net cash provided by (used in) operating activities, net cash provided by (used in) operating activities of discontinued operations and additions to property, plant and mine development attributable to noncontrolling interests, which relate to yanacocha (5%) and merian (25%). (2) for the three months ended march 31, 2022,yanacocha and merian had total consolidated additions to property, plant and mine development of $68 and $10, respectively, on a cash basis. (3) net cash provided by (used in) investing activities includes additions to property, plant and mine development, which is included in the company’s computation of free cash flow. three months ended march 31, 2021 consolidated attributable to noncontrolling interests (1) attributable to newmont stockholders net cash provided by (used in) operating activities $ 841 $ (20 ) $ 821 less: net cash used in (provided by) operating activities of discontinued operations — — — net cash provided by (used in) operating activities of continuing operations 841 (20 ) 821 less: additions to property, plant and mine development (2) (399 ) 16 (383 ) free cash flow $ 442 $ (4 ) $ 438 net cash provided by (used in) investing activities (3) $ (350 ) net cash provided by (used in) financing activities $ (511 ) (1) adjustment to eliminate a portion of net cash provided by (used in) operating activities, net cash provided by (used in) operating activities of discontinued operations and additions to property, plant and mine development attributable to noncontrolling interests, which relate to yanacocha (48.65%) and merian (25%). (2) for the three months ended march 31, 2021, yanacocha and merian had total consolidated additions to property, plant and mine development of $28 and $11, respectively, on a cash basis. (3) net cash provided by (used in) investing activities includes additions to property, plant and mine development, which is included in the company’s computation of free cash flow. costs applicable to sales per ounce/gold equivalent ounce costs applicable to sales per ounce/gold equivalent ounce are non-gaap financial measures. these measures are calculated by dividing the costs applicable to sales of gold and other metals by gold ounces or gold equivalent ounces sold, respectively. these measures are calculated for the periods presented on a consolidated basis. costs applicable to sales per ounce/gold equivalent ounce 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 march 31, 2022 2021 costs applicable to sales (1)(2) $ 1,184 $ 1,065 gold sold (thousand ounces) 1,329 1,417 costs applicable to sales per ounce (3) $ 890 $ 752 (1) includes by-product credits of $27 and $55 during the three months ended march 31, 2022 and 2021, respectively. (2) excludes depreciation and amortization and reclamation and remediation. (3) per ounce measures may not recalculate due to rounding. costs applicable to sales per gold equivalent ounce three months ended march 31, 2022 2021 costs applicable to sales (1)(2) $ 251 $ 182 gold equivalent ounces - other metals (thousand ounces) (3) 350 327 costs applicable to sales per ounce (4) $ 717 $ 555 (1) includes by-product credits of $2 and $1 during the three months ended march 31, 2022 and 2021, respectively. (2) excludes depreciation and amortization and reclamation and remediation. (3) gold equivalent ounces is calculated as pounds or ounces produced multiplied by the ratio of the other metals price to the gold price, using gold ($1,200/oz.), copper ($3.25/lb.), silver ($23.00/oz.), lead ($0.95/lb.) and zinc ($1.15/lb.) pricing for 2022 and gold ($1,200/oz.), copper ($2.75/lb.), silver ($22.00/oz.), lead ($0.90/lb.) and zinc ($1.05/lb.) pricing for 2021. (4) per ounce measures may not recalculate due to rounding. costs applicable to sales per ounce for nevada gold mines (ngm) three months ended march 31, 2022 2021 cost applicable to sales, ngm (1)(2) $ 257 $ 227 gold sold (thousand ounces), ngm 287 305 costs applicable to sales per ounce, ngm (3) $ 899 $ 745 (1) see note 3 to the condensed consolidated financial statements. (2) excludes depreciation and amortization and reclamation and remediation. (3) per ounce measures may not recalculate due to rounding. all-in sustaining costs newmont has developed 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 our continuing 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 production. therefore, we believe that all-in sustaining costs is a non-gaap measure that provides additional information to management, investors and analysts that aids in the understanding of the economics of our operations and performance compared to other producers and provides investors visibility by better defining the total costs associated with production. all-in sustaining cost 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 ifrs, or by reflecting the benefit from selling non-gold metals as a reduction to aisc. differences may also arise related to definitional differences of sustaining versus development (i.e. non-sustaining) 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 production incurred to execute the current mine plan. we exclude certain exceptional or unusual amounts from cas, such as significant revisions to recovery amounts. 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 operations. 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 operations less the amount of cas attributable to the production of other metals. the other metals' cas at those mine sites is disclosed in note 3 of the condensed consolidated financial statements. the allocation of cas between gold and other metals is based upon the relative sales value of gold and other metals produced during the period. reclamation costs. includes accretion expense related to reclamation liabilities and the amortization of the related arc for the company’s operating properties. accretion related to the reclamation liabilities 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 production and are therefore included in the measure. the allocation of these costs to gold and other metals is determined using the same allocation used in the allocation of cas between gold and other metals. advanced projects, research and development and exploration. includes incurred expenses related to projects that are designed to sustain current production and exploration. we note that as current reserves 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 to sustain production at existing operations. as these costs relate to sustaining our production, and are 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 operations less incurred expenses related to the development of new operations, or related to major projects at existing operations where these projects will materially benefit the operation in the future. the allocation of these costs to gold and other metals is determined using the same allocation used in the allocation of cas between gold and other metals. we also allocate these costs incurred at the other north america, other australia and corporate and other locations using the proportion of cas between gold and other metals. general and administrative. includes costs related to administrative tasks not directly related to current 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. we allocate these costs to gold and other metals at the other north america, other australia and corporate and other locations using the proportion of cas between gold and other metals. 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 on the condensed consolidated statements of operations. the allocation of these costs to gold and other metals is determined using the same allocation used in the allocation of cas between gold and other metals. sustaining capital and finance lease payments. we determined sustaining capital and finance lease payments as those capital expenditures and finance lease payments that are necessary to maintain current production and execute the current mine plan. we determined development (i.e. non-sustaining) capital expenditures and finance lease payments to be those payments used to develop new operations or related to projects at existing operations where those projects will materially benefit the operation and are excluded from the calculation of aisc. the classification of sustaining and development capital projects and finance leases is based on a systematic review of our project portfolio in light of the nature of each project. sustaining capital and finance lease payments are relevant to the aisc metric as these are needed to maintain the company’s current operations and provide improved transparency related to our ability to finance these expenditures from current operations. the allocation of these costs to gold and other metals is determined using the same allocation used in the allocation of cas between gold and other metals. we also allocate these costs incurred at the other north america, other australia and corporate and other locations using the proportion of cas between gold and other metals. three months ended march 31, 2022 costs applicable to sales(1)(2)(3) reclamation costs(4) advanced projects, research and development and exploration(5) general and administrative other expense, net(6)(7) treatment and refining costs sustaining capital and lease related costs(8)(9) all-in sustaining costs ounces (000) sold all-in sustaining costs per oz.(10) gold cc&v $ 52 $ 3 $ 1 $ — $ 1 $ — $ 4 $ 61 36 $ 1,676 musselwhite 43 2 1 — 1 — 6 53 32 1,642 porcupine 66 1 2 — — — 9 78 60 1,296 ÉlÉonore 62 2 — — 1 — 12 77 50 1,557 peÑasquito 87 2 1 — 1 7 14 112 134 843 other north america — — — 1 1 — — 2 — — north america 310 10 5 1 5 7 45 383 312 1,230 yanacocha 67 4 — — 3 — 5 79 68 1,163 merian 87 2 1 — 1 — 11 102 103 991 cerro negro 63 1 — — 6 — 1
