Newmont Mining Corporation
Excerpt from Financial Statement Notes
Mineral exploration costs are expensed as incurred. When it has been determined that a mineral property can be economically developed, the costs incurred to develop such property are capitalized, including costs to further delineate the ore body and remove overburden to initially expose the ore body. Such costs, and estimated future development costs, are amortized using a units of production method over the estimated life of the ore body. Ongoing development expenditures to maintain production are generally charged to operations as incurred.
Significant payments related to the acquisition of exploration interests are also capitalized. If a mineable ore body is discovered, such costs are amortized using a units of production method. If no mineable ore body is discovered, such costs are expensed in the period in which it is determined the property has no future economic value.
Required
Does Newmont use the full cost or the successful efforts method? Why?