Business Context and Reporting Period
Company: Newmont Mining Corporation
Filing Type: Form 8-K (Current Report)
Date of Report: September 16, 2005
Event Date: September 16, 2005
This filing reports a specific corporate transaction involving the sale of an investment by a subsidiary, Newmont Mining Corporation of Canada Limited.
Key Financial Metrics
- Transaction Proceeds: Approximately Canadian $130 million.
- Asset Sold: 14,457,441 shares of Kinross Gold Corporation.
- Expected Pre-Tax Gain: Approximately US $19 million.
- Recognition Period: Third quarter of 2005.
- Asset Classification: Available-for-sale marketable security.
The filing does not provide data on total revenue, operating profit, cash flow, margins, debt, or liquidity for the reporting period.
Material Changes
The primary material change is the divestiture of a significant equity stake in Kinross Gold Corporation. This transaction will result in a one-time pre-tax gain of approximately US $19 million, impacting consolidated earnings for the third quarter of 2005.
Outlook and Management Commentary
Management expects to recognize the gain from the sale in the third quarter of 2005. The filing contains no forward-looking guidance, risk factors, or discussion of contingencies beyond the specific details of this transaction.
Investor Verification Checklist
- Verify the exact exchange rate used to convert the Canadian $130 million proceeds to US dollars.
- Confirm the cost basis of the Kinross Gold shares to validate the US $19 million pre-tax gain calculation.
- Review the third-quarter 2005 earnings release to ensure the gain is recorded as expected.
- Assess the impact of this sale on the company's remaining portfolio of available-for-sale securities.