NEWMONT Corp /DE/NEM
NEWMONT Corp /DE/ Fair Value Disclosure
FAIR VALUE ACCOUNTING
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Fair value accounting establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are described below:
Level 1 Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities;
Level 2 Quoted prices in markets that are not active, quoted prices for similar assets or liabilities in active markets, quoted prices or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability and model-based valuation techniques (e.g. the Black-Scholes model) for which all significant inputs are observable in the market or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and
Level 3 Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (supported by little or no market activity).
The following tables set forth the Company’s assets and liabilities measured at fair value on a recurring (at least annually) and nonrecurring basis by level within the fair value hierarchy. As required by accounting guidance, assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement.
Fair Value at December 31, 2025 | |||||||||||||||||||||||
| Total | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||
| Assets: | |||||||||||||||||||||||
Cash and cash equivalents (1) | $ | 7,647 | $ | 7,647 | $ | — | $ | — | |||||||||||||||
| Restricted cash | 37 | 37 | — | — | |||||||||||||||||||
| Trade receivables from provisional concentrate sales | 1,064 | — | 1,064 | — | |||||||||||||||||||
Long-lived assets (Note 7) | 78 | — | — | 78 | |||||||||||||||||||
Marketable equity and other securities (Note 15) | 740 | 740 | — | — | |||||||||||||||||||
Restricted marketable debt and other securities (Note 6) | 13 | 13 | — | — | |||||||||||||||||||
Derivative assets (Note 14) | 262 | — | 60 | 202 | |||||||||||||||||||
| $ | 9,841 | $ | 8,437 | $ | 1,124 | $ | 280 | ||||||||||||||||
| Liabilities: | |||||||||||||||||||||||
Debt (Note 20) (2) | $ | 5,283 | $ | — | $ | 5,283 | $ | — | |||||||||||||||
Derivative liabilities (Note 14) | 1 | — | 1 | — | |||||||||||||||||||
| Other liabilities | 339 | — | 339 | — | |||||||||||||||||||
| $ | 5,623 | $ | — | $ | 5,623 | $ | — | ||||||||||||||||
| Fair Value at December 31, 2024 | |||||||||||||||||||||||
| Total | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||
| Assets: | |||||||||||||||||||||||
Cash and cash equivalents (1) | $ | 3,619 | $ | 3,619 | $ | — | $ | — | |||||||||||||||
| Restricted cash | 31 | 31 | — | — | |||||||||||||||||||
| Trade receivables from provisional concentrate sales | 993 | — | 993 | — | |||||||||||||||||||
Assets held for sale (Note 3) (3) | 1,840 | — | 1,168 | 672 | |||||||||||||||||||
Equity method investment | 212 | 212 | — | — | |||||||||||||||||||
Marketable equity and other securities (Note 15) | 305 | 305 | — | — | |||||||||||||||||||
Restricted marketable debt and other securities (Note 6) | 15 | 15 | — | — | |||||||||||||||||||
Derivative assets (Note 14) | 142 | — | — | 142 | |||||||||||||||||||
| $ | 7,157 | $ | 4,182 | $ | 2,161 | $ | 814 | ||||||||||||||||
| Liabilities: | |||||||||||||||||||||||
Debt (Note 20) (2) | $ | 8,400 | $ | — | $ | 8,400 | $ | — | |||||||||||||||
Derivative liabilities (Note 14) | 143 | — | 137 | 6 | |||||||||||||||||||
| Other liabilities | 51 | — | 51 | — | |||||||||||||||||||
| $ | 8,594 | $ | — | $ | 8,588 | $ | 6 | ||||||||||||||||
(1)Cash and cash equivalents include short-term deposits that have an original maturity of three months or less.
(2)Debt is carried at amortized cost. The outstanding carrying value was $5,115 and $8,476 at December 31, 2025 and December 31, 2024, respectively. The fair value measurement of debt was based on an independent third-party pricing source.
(3)Includes assets held for sale that were written down to their fair value, excluding costs to sell, of $1,840 and the aggregate fair value, excluding costs to sell, of net assets held for sale subject to fair value remeasurement was $679.
The Company’s cash and cash equivalents and restricted cash are classified within Level 1 of the fair value hierarchy because they are valued using quoted market prices in active markets and are primarily money market securities and U.S. Treasury securities.
The Company’s trade receivables from provisional concentrate sales, which contain an embedded derivative and are subject to final pricing, are valued using quoted market prices based on forward curves for the particular metal. As the contracts themselves are not traded on an exchange, these receivables are classified within Level 2 of the fair value hierarchy.
The Company's long-lived assets consist of long-lived assets at Yanacocha that were subject to a non-recurring fair value measurement as a result of impairment tests performed for the year ended December 31, 2025. The Company performed a non-recurring fair value measurement, classified as Level 3 of the fair value hierarchy, in connection with recoverability and impairment tests performed over long-lived assets. Refer to Note 7 for further information regarding management’s assessment of these long-lived assets, including the assumptions utilized in determining the fair value.
The Company's assets held for sale consisted of the six non-core assets and a development project that met the accounting requirements to be presented as held for sale as of December 31, 2024, which were all divested as of December 31, 2025. The estimated fair values of assets held for sale are considered a non-recurring level 2 or 3 fair value measurements and were determined using (i) the market-based approach for disposal groups in which a binding sales agreement was in place but close had not yet occurred, or (ii) the income approach in the absence of a binding sales agreement. Refer to Note 3 for further information.
The Company's equity method investment consisted of the Greatland equity method investment which was accounted for under the fair value option at December 31, 2024 and classified as Level 1 within the fair value hierarchy as it was valued using published market prices of actively traded securities. At December 31, 2025, the remaining shares in Greatland were accounted for as a marketable equity security. Refer to Note 3 for further information.
The Company’s marketable equity and other securities with readily determinable fair values are valued using quoted market prices in active markets and as such are classified within Level 1 of the fair value hierarchy. The fair value of the marketable equity securities are calculated as the quoted market price of the marketable equity security multiplied by the quantity of shares held by the Company.
The Company’s restricted marketable debt and other securities are primarily U.S. government issued bonds and international bonds. The Company’s debt securities held at Yanacocha are classified within Level 1 of the fair value hierarchy, using published market prices of actively traded securities. The Company’s debt securities held at Corporate and Other are classified within Level 1 and Level 2 of the fair value hierarchy. The Level 1 debt securities are valued using published market prices of actively traded securities and the Level 2 debt securities are valued using pricing models which are based on published market inputs for similar, actively traded securities.
The Company’s derivative instruments consist of the Cadia PPA, foreign currency fixed forward contracts, and contingent consideration assets that are accounted for as derivatives.
The Cadia PPA is accounted for at fair value using probability-weighted discounted cash flow models and is classified within Level 3 of the fair value hierarchy. The valuation model requires a variety of inputs including life of mine production profiles, forward power prices, forecasted power generation volume, discount rates, and inflation assumptions. Refer to Note 14 for further information.
The foreign currency fixed forward contracts are valued using pricing models based on forward curves. The Company’s foreign currency fixed forward derivatives trade in liquid markets, and as such, model inputs can generally be verified and do not involve significant management judgment. Such instruments are classified within Level 2 of the fair value hierarchy. Refer to Note 14 for further information.
The contingent consideration asset, accounted for as a derivative, is classified within Level 3 of the fair value hierarchy. The contingent consideration is dependent on the average gold price over a defined period. As a result, changes in the future gold prices could result in an impact to the estimated fair value of the contingent consideration asset.
The Company's other liabilities recognized at fair value consist of the Greatland Option, which was acquired through the sale of Telfer in the fourth quarter of 2024. The Greatland Option is accounted for under the fair value option and is classified as Level 2 within the fair value hierarchy and is valued using pricing models which are based on published market inputs for similar, actively traded securities. Refer to Note 3 for further information.
The following tables set forth a summary of the quantitative and qualitative information related to the significant observable and unobservable inputs used in the calculation of the Company’s Level 3 financial assets and liabilities at December 31, 2025 and December 31, 2024:
| Description | At December 31, 2025 | Valuation technique | Significant input | Range, point estimate or average | Weighted Average Discount Rate | |||||||||||||||||||||||||||
| Long-lived assets | $ | 78 | Market-based approach | Various (1) | Various (1) | |||||||||||||||||||||||||||
| Derivative assets: | ||||||||||||||||||||||||||||||||
Hedging instruments | $ | 162 | Income approach | Forward power prices | A$37 - A$703 | 7.00% | ||||||||||||||||||||||||||
| Contingent consideration assets | $ | 40 | Income approach | Forward gold prices | $4,254 | —% | ||||||||||||||||||||||||||
| Description | At December 31, 2024 | Valuation technique | Significant input | Range, point estimate or average | Weighted Average Discount Rate | |||||||||||||||||||||||||||
Assets held for sale (2) | $ | 672 | Income approach | Various (2) | Various (2) | 9.75% | ||||||||||||||||||||||||||
| Derivative assets | ||||||||||||||||||||||||||||||||
Hedging instruments (3) | $ | 94 | Income approach | Forward power prices | A$43 - A$321 | 6.75% | ||||||||||||||||||||||||||
| Contingent consideration assets | $ | 47 | Income approach | Discount rate | 6.37% - 16.38% | 10.67% | ||||||||||||||||||||||||||
Derivative liabilities (3) | $ | 5 | Income approach | Discount rate | 5.22% - 5.95% | 5.66% | ||||||||||||||||||||||||||
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(1)Refer to Note 7 for information on the assumptions and inputs specific to the non-recurring fair value measurement performed in connection with recoverability and impairment tests incurred for certain long-lived assets.
(2)Significant inputs at December 31, 2024 included: (i) cash flow estimates, (ii) a long-term gold price of $1,900, (iii) current estimates of resources and exploration potential, and (iv) a reporting unit specific discount rate of 9.75%.
(3)Hedging instruments consists of the net position of the Cadia PPA which is comprised of $1 is in a liability position and the non-current portion of $95 is in an asset position. The current liability portion is included in Derivative liabilities within the fair value hierarchy table and the non-current asset portion is included in Derivative assets within the fair value hierarchy table.
The following tables set forth a summary of changes in the fair value of the Company’s recurring Level 3 financial assets and liabilities:
Derivative Assets | Total Assets | Derivative Liabilities | Total Liabilities | ||||||||||||||||||||
| Fair value at December 31, 2023 | $ | 635 | $ | 635 | $ | 5 | $ | 5 | |||||||||||||||
Sales and settlements (1) | (377) | (377) | — | — | |||||||||||||||||||
Transfers out of Level 3 (2) | (76) | (76) | — | — | |||||||||||||||||||
Fair value changes in Other comprehensive income (loss): | (53) | (53) | 1 | 1 | |||||||||||||||||||
| 2 | 2 | — | — | ||||||||||||||||||||
Fair value changes in Net income (loss) from discontinued operations | 11 | 11 | — | — | |||||||||||||||||||
| Fair value at December 31, 2024 | 142 | 142 | 6 | 6 | |||||||||||||||||||
Acquired through divestments (3) | 14 | 14 | — | — | |||||||||||||||||||
Transfers out of Level 3 (4) | (47) | (47) | (5) | (5) | |||||||||||||||||||
| 67 | 67 | (1) | (1) | ||||||||||||||||||||
| 26 | 26 | — | — | ||||||||||||||||||||
| Fair value at December 31, 2025 | $ | 202 | $ | 202 | $ | — | $ | — | |||||||||||||||
(1)In the second quarter of 2024, the Company sold the Stream Credit Facility Agreement which was a non-revolving credit facility for the Fruta del Norte mine operated by Lundin Gold Inc. (“Lundin Gold”), in which the Company holds a 32% interest; refer to Note 14 for further information. In the third quarter of 2024, the company sold the Batu and Elang Contingent consideration assets; refer to Note 1 for further information.
(2)In the first quarter of 2024, certain amounts relating to the Batu Hijau contingent consideration asset were reclassified from a derivative to a receivable as a result of achieving certain contractual milestones.
(3)The Company acquired contingent consideration assets as part of the divestitures that occurred in 2025. Refer to Note 3 for further information.
(4)The Company early adopted ASU 2025-07 on December 31, 2025 resulting in the reclassification of certain derivatives assets and liabilities. Refer to Note 14 for further information.Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 19, 2026 | Showing above |
| 2024 | Feb 21, 2025 | |
| 2023 | Feb 29, 2024 | |
| 2022 | Feb 23, 2023 | |
| 2021 | Feb 24, 2022 | |
| 2020 | Feb 18, 2021 | |
| 2019 | Feb 20, 2020 | |
| 2018 | Feb 21, 2019 | |
| 2017 | Feb 22, 2018 | |
| 2016 | Feb 21, 2017 | |
| 2015 | Feb 17, 2016 | |
About Fair Value Disclosures
Fair value disclosures classify all assets and liabilities measured at fair value into a three-level hierarchy: Level 1 (quoted market prices), Level 2 (observable inputs like yield curves), and Level 3 (unobservable inputs requiring management estimates). The proportion of Level 3 assets directly reflects how much of the balance sheet depends on internal models rather than market evidence.
Key signals: a growing Level 3 balance relative to total fair-value assets increases valuation uncertainty and earnings volatility risk. Watch for transfers between levels — assets moving from Level 2 to Level 3 often signal deteriorating market liquidity. Unrealized gains and losses on Level 3 positions flow through earnings or other comprehensive income, so large swings deserve scrutiny. For financial institutions, examine the sensitivity disclosures that show how Level 3 valuations change under alternative assumptions. Compare the fair value of debt against its carrying amount to gauge hidden leverage.