Newmont Mining Corp. announced that it will restate its cash flow for 2002, 2003, and the first quarter of 2004 after discovering an error.
The error appeared in the line item “effect of exchange rate changes on cash” in the cash-flow statements, the company said.
Newmont stressed that the restatement will not affect its income statements or balance sheets. The company also pointed out that the “cash and cash equivalents” reported at the end of each period — that figure was $1.55 billion as of the first quarter of 2004 — remain unchanged.
The company explained that it needed to restate its cash-flow figures because it had incorrectly allocated the impact of foreign exchange rate changes among “operating activities,” “investing activities,” and “effect of exchange rate changes on cash” in the cash-flow statements. The incorrect allocation was caused by a misinterpretation of the applicable accounting standard, it added.
As a result of the restatement, “net cash provided by operating activities” for 2002 will be reduced from the $670.3 million previously reported to $655.8 million. For 2003, it will be reduced from $588.8 million to $538.4 million; and for the first quarter of 2004, from $328.2 million to $324.1 million.