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Newmont Announces Third Quarter 2013 Results

Net attributable costs applicable to sales per ounce measures the benefit of copper produced in conjunction with gold, as a credit against the cost of producing gold. A number of other gold producers present their costs net of the contribution from copper and other non-gold sales. We believe that including a measure on this basis provides management, investors and analysts with information with which to compare our performance to other gold producers, and to better assess the overall performance of our business. In addition, this measure provides information to enable investors and analysts to understand the importance of non-gold revenues to our cost structure.

The following tables reconcile these non-GAAP measures to the most directly comparable GAAP measures.

Costs applicable to sales per ounce
  Three Months Ended September 30,   Nine Months Ended September 30,
2013   2012 2013   2012
 
Costs applicable to sales:
Consolidated per financial statements (1) $ 885 $ 950 $ 3,012 $ 2,746
Noncontrolling interests (2)   (81 )   (99 )   (289 )   (278 )
Attributable to Newmont $ 804   $ 851   $ 2,723   $ 2,468  
 
Gold sold (thousand ounces):
Consolidated 1,365 1,370 3,948 4,138
Noncontrolling interests (2)   (135 )   (181 )   (424 )   (554 )
Attributable to Newmont   1,230     1,189     3,524     3,584  
 
Costs applicable to sales per ounce:
Consolidated $ 649 $ 693 $ 763 $ 664
Attributable to Newmont $ 654 $ 716 $ 773 $ 689
 
(1)Includes by-product credits of $67 and $155 in the third quarter and first nine months of 2013, respectively and $57 and $165 in the third quarter and first nine months of 2012, respectively.
(2)Relates to partners' interests in Batu Hijau and Yanacocha.
 

Costs applicable to sales per pound
  Three Months Ended September 30,   Nine Months Ended September 30,
2013   2012 2013   2012
 
Costs applicable to sales:
Consolidated per financial statements (1) $ 151 $ 138 $ 721 $ 361
Noncontrolling interests (2)   (63 )   (51 )   (300 )   (131 )
Attributable to Newmont $ 88   $ 87   $ 421   $ 230  
 
Copper sold (million pounds):
Consolidated 57 58 156 162
Noncontrolling interests (2)   (22 )   (21 )   (53 )   (59 )
Attributable to Newmont   35     37     103     103  
 
Costs applicable to sales per pound:
Consolidated $ 2.63 $ 2.38 $ 4.61 $ 2.23
Attributable to Newmont $ 2.56 $ 2.35 $ 4.09 $ 2.23
 
(1)Includes by-product credits of $1 and $3 in the third quarter and first nine months of 2013, respectively and $3 and $8 in the third quarter and first nine months of 2012, respectively.
(2)Relates to partners' interests in Batu Hijau.
 
Net attributable costs applicable to sales per ounce
  Three Months Ended September 30,   Nine Months Ended September 30,
2013   2012 2013   2012
 
Attributable costs applicable to sales:
Gold $ 804 $ 851 $ 2,723 $ 2,468
Copper   88     87     421     230  
  892     938     3,144     2,698  
 
Copper revenue:
Consolidated (178 ) (206 ) (461 ) (569 )
Noncontrolling interests (1)   70     75     157     209  
  (108 )   (131 )   (304 )   (360 )
Net attributable costs applicable to sales $ 784   $ 807   $ 2,840   $ 2,338  
 
Attributable gold ounces sold (thousands) 1,230 1,189 3,524 3,584
Net attributable costs applicable to sales per ounce $ 637 $ 679 $ 806 $ 652
 
(1)Relates to partners' interests in Batu Hijau.
 

All-In Sustaining Costs

Newmont has worked to develop a metric that expands on GAAP measures such as cost of goods sold and non-GAAP measures to provide visibility into the economics of our gold mining operations related to expenditures, operating performance and the ability to generate cash flow from operations.

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