Ghana Analyst Tour February 11, 2006 Exhibit 99.1 |
PRIVATE SECURITIES LITIGATION REFORM ACT SAFE HARBOR STATEMENT This presentation contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, that are intended to be covered by the safe harbor created by such sections. Such forward-looking statements include, without limitation, (i) estimates of future gold and other metals production and sales; (ii) estimates of future costs and consolidated costs applicable to sales; (iii) estimates of future capital expenditures, expenses and tax rates; (iv) estimates regarding timing of future production activities; and (v) statements regarding future exploration results. Where the Company expresses or implies an expectation or belief as to future events or results, such expectation or belief is expressed in good faith and believed to have a reasonable basis. However, forward-looking statements are subject to risks, uncertainties and other factors, which could cause actual results to differ materially from future results expressed, projected or implied by such forward- looking statements. Such risks include, but are not limited to, gold and other metals price volatility, currency fluctuations, increased production costs and variances in ore grade or recovery rates from those assumed in mining plans, political and operational risks in the countries in which we operate, and governmental regulation and judicial outcomes. For a more detailed discussion of such risks and other factors, see the Company’s 2004 Annual Report on Form 10-K, which is on file with the Securities and Exchange Commission, as well as the Company’s other SEC filings. The Company does not undertake any obligation to release publicly revisions to any “forward-looking statement,” to reflect events or circumstances after the date of this news release, or to reflect the occurrence of unanticipated events, except as may be required under applicable securities laws. Cautionary Statement Cautionary Statement Slide 2 |
Slide 3 Newmont’s Newmont’s Newest Core District Newest Core District • Land Package: ~14,600 square kilometers – 4,700 sq km within 40 km of existing projects • Stable and Business-Oriented Government • Strong Mining and Business Practices • Established English Code of Law • Rich Mineral Deposits Cote d’ Ivoire Burkina Faso GHANA Accra Lome Togo Benin 200 Kilometers 120 Miles A T L A N T I C O C E A N Ahafo Akyem Obuasi (Ashanti) Tarkwa (Gold Fields) |
Slide 4 Rapid Reserve Growth Rapid Reserve Growth 3.3 4.9 11.9 16.0 0 5 10 15 20 Ahafo Akyem Feasibility Studies Initial Exploration Newmont |
Slide 5 Ahafo Ahafo Project Project • Ahafo, Ghana – On schedule for 2H 2006 gold production – Expected average annual gold sales¹ • ~500,000 – 550,000 ounces – Costs applicable to sales • $225-$250 per ounce – Capital expenditures • $450 - $460 million 1) Annualized average over steady state of production. |
Slide 6 Ahafo Ahafo – – Tenement Plan Tenement Plan |
Slide 7 Akyem Project Akyem Project • Akyem, Ghana¹ – On schedule for 2008 gold production – Expected average annual gold sales² • 500,000 – 550,000 equity ounces – Costs applicable to sales • $200 - $225 per ounce – Capital expenditures • $500 - $515 million 1) All statistics reflect Newmont’s acquisition of the remaining 15% interest in Akyem on January 20, 2006. 2) Annualized average over steady state of production. |
Slide 8 Akyem Akyem – – Plan Plan View View |
Slide 9 Akyem Akyem – – Development Development Timeline Timeline Exploration & Development Feasibility Production Early Engineering & Planning Compensation & Resettlement Construction EIA Approval – July 2005 Mining License Issued - August 2005 Eng & Proc Initial Construction May 2006 2 0 0 5 2 0 0 6 2 0 0 7 2 0 0 8 + 2 0 0 4 Before |
Slide 10 First Class Assets First Class Assets Source: Minerals Economics Group All Known Gold Deposits All Known Gold Deposits 100 1 10 10 100 1,000 1 Ahafo - 2002 Akyem - 2002 Ahafo - 2004 Akyem - 2004 Reserve and Non-Reserve Mineralized Material Tons (Mt) |
Slide 11 West Africa Strategy West Africa Strategy • Ghana as a Foundation for Regional Growth • Three Pronged Approach – Exploration – Business intelligence – Acquisition • Strong Land Position • Parallel Focus – Project development – District development – Ghana exploration – Regional framework • Technique and Technology |
Slide 12 West Africa +5Moz Gold Systems Sadiola Loulo Siguiri Morila Syama Ahafo Bibiani Obuasi Bogosu- Prestea Tarkwa Akyem Essakan |
Slide 13 Newmont Regional Exploration in West Africa Northern Region (Wa) Southern Sefwi Kibi South Ashanti Winneba |
Slide 14 Gradient Array Geophysics Specialist Geophycist Exploring Beneath Cover - Developing New Tools Specialist Regolith Mapping and Geochemist, Imported RAB Rig Specialist Structural Geologist |
Slide 15 African Business Development 2005 2005 Business Activities Business Activities Prospectivity Low Medium High I II III IV I. Investment for Development A. Exploration Ops B. Acquisitions & Synergy Benefits II. Exploration Ops with partner/Contractor or secundment A. Acquisition with management infrastruture III. Regional Exploration A. Intelligence information for investment IV. No Exploration operations A. Long term option equity with low carrying costs |