Exhibit 99.1
Newmont's First Quarter Net Income of $117 Million, $0.29 Per Share
DENVER, May 7 /PRNewswire-FirstCall/ -- Newmont Mining Corporation
(NYSE: NEM) today announced first quarter net income of $117.3 million
($0.29 per share), compared to a net loss of $8.7 million ($0.03 per share)
for the first quarter of 2002. Net income before the cumulative effect of a
change in accounting principle totaled $151.8 million ($0.38 per share).
First quarter highlights included:
* Equity gold sales(1) of 1.78 million ounces at total cash costs of
$201 per ounce;(2)
* Net cash provided by operating activities of $186.1 million, before
settlement of derivatives of $50.1 million;
* Consideration of $180 million received from the sale of the TVX
Newmont Americas joint venture interest;
* Exchange of the Company's 45.7% interest in Echo Bay for a 13.8%
interest in Kinross Gold, which had a market value of $266.4 million
at the end of the first quarter;
* Debt reduction of $156.7 million; and
* Reduction of committed hedged ounces by a further 1.44 million ounces.
Wayne W. Murdy, Chairman and Chief Executive Officer of Newmont, said:
"Our first quarter results reflect the strength of our operating assets as
well as our largely unhedged production profile. We continue to meet or
exceed the strategic goals of improved profitability, reduced financial
leverage and increased exposure to the gold price that we outlined when we
acquired Franco-Nevada and Normandy."
First Quarter
2003 2002
Financial (in millions, except per share)
Sales and other income $864.6 $495.8
Net cash provided by operating activities $136.0 $71.2
Net income (loss) applicable to common shares $117.3 ($8.7)
Net income (loss) per common share $0.29 ($0.03)
Operating
Equity gold sales (000 ounces)(1) 1,780.5 1,464.8
Average realized price ($/oz) $351 $292
Total cash costs ($/oz)(2) $201 $195
Total production costs ($/oz)(2) $261 $257
1. Equity gold sales ounces are those attributable to Newmont's
ownership or economic interest.
2. For a reconciliation of total cash costs and total production costs
per ounce (non-GAAP measures of performance) to costs applicable to
sales calculated and presented under GAAP, please refer to the
Supplemental Information attached.
Financial & Operating Review
First quarter net income applicable to common shares was $117.3 million
($0.29 per share), a substantial improvement over the net loss of $8.7 million
($0.03 per share) for the first quarter of 2002. Net income to common shares
before the cumulative effect of a change in accounting principle was
$151.8 million ($0.38 per share), compared to a net loss of $16.4 million
($0.06 per share) for the first quarter of 2002.
The Company's improved performance was the result of a $59 per ounce
higher realized gold price (+20%) and a 22% increase in equity gold sold over
the year ago quarter (taking into account the February 15, 2002 acquisition
date of Franco-Nevada and Normandy). In addition, net income was impacted by
a number of non-recurring gains and losses, including:
-- a $34.5 million ($0.09 per share) non-cash, after-tax charge to
recognize the cumulative effect of a change in accounting principle
to reflect the implementation of FAS 143, "Accounting for Asset
Retirement Obligations";
-- a $42.2 million ($0.10 per share) non-cash, after-tax gain for the
change in fair value of gold derivative instruments that do not
qualify as "effective hedges" and are thus recognized in income;
-- a net $68.0 million ($0.17 per share) non-cash, after-tax gain on the
exchange of the Company's 45.7% equity investment in Echo Bay for a
13.8% interest in Kinross Gold;
-- a $13.0 million ($0.03 per share) after-tax loss on the
extinguishment of debt; and
-- miscellaneous write-downs and legacy-site reclamation accruals
totaling $20.5 million ($0.05 per share) after-tax, including a
write-down of $11.0 million ($0.03 per share) relating to the
Company's equity investment in Australian Magnesium Corporation.
The Company generated cash from operating activities of $136.0 million
for the quarter, after utilizing $50.1 million of operating cash flow for
settlement of normal and accelerated deliveries into the acquired Australian
hedge books. Cash generated from operating activities before hedge book
reductions was $186.1 million.
Operating Highlights
North America Q1 2003 Q1 2002
Equity gold sales (000 ozs) 747.4 727.4
Total cash costs ($/oz)(1) $226 $231
* The Nevada operations sold 632,900 ounces in the first quarter, a 4%
increase over the first quarter of 2002. Production from refractory
ores increased to 458,100 ounces (+16%) due to higher tons processed
(+14%) and improved recovery (+2%). Total cash costs were 5% lower
than a year ago at $226 per ounce.
* Golden Giant in Canada sold 65,200 ounces in the first quarter, a 5%
increase over the first quarter of 2002 as higher grades (+45%) offset
lower mill throughput. Total cash costs were 16% higher than a year
ago at $249 per ounce due to a strengthening Canadian dollar and more
labor-intensive mining techniques as the mine matures.
* Holloway in Canada sold 18,100 equity ounces in the first quarter, a
35% decrease over the first quarter of 2002. Total cash costs were
52% higher than a year ago at $294 per ounce. Declining production
and higher total cash costs resulted from a temporary 26% decrease in
ore grade due to stope sequencing.
* La Herradura in Mexico sold 16,600 equity ounces in the first quarter,
a 6% increase over the first quarter of 2002. Total cash costs were
30% lower than a year ago at $128 per ounce.
South America Q1 2003 Q1 2002
Equity gold sales (000 ozs) 386.9 308.7
Total cash costs ($/oz)1 $130 $142
* Yanacocha in Peru sold 335,100 equity ounces in the first quarter, a
35% increase over the first quarter of 2002, while total cash costs
were 9% lower than a year ago at $124 per ounce as tons placed on the
leach pads increased (+7%) and the average ore grade increased.
* Kori Kollo in Bolivia sold 51,800 equity ounces in the first quarter,
a 15% decrease from the first quarter of 2002 as lower grade
refractory ore (-24%) outweighed higher refractory ore recovery
(+13%). Total cash costs were 6% higher than a year ago at $172 per
ounce.
Australia Q1 2003 Q1 2002
Equity gold sales (000 ozs) 407.8 238.7
Total cash costs ($/oz)1 $235 $167
* In general, the Australian operations reported higher cash costs over
the year ago quarter as a result of:
-- a stronger Australian dollar, which averaged $0.595 during the
quarter (+14% from the year ago quarter), increased cash costs by
approximately $28 per ounce;
-- higher fuel costs, which increased cash costs by approximately
$4 per ounce; and
-- reallocated technical service and administrative costs, which
increased cash costs by approximately $14 per ounce.
In addition, the effective date of the Franco-Nevada and Normandy
acquisitions of February 15, 2002, resulted in only six weeks of
consolidated results for the first quarter of 2002. This reduces the
usefulness of year-to-year comparisons for the first quarter.
* Kalgoorlie sold 89,000 equity ounces at total cash costs of $247 per
ounce (+15%). Higher average grades (+10%) and improved recoveries
(+3%) due to improved roaster availability helped mitigate higher
underground mining costs at Mt. Charlotte and the impact of a mill
maintenance shutdown brought forward from April.
The Kalgoorlie Optimization Study, commissioned jointly by Newmont and
its joint venture partner, has been completed. The study concluded
that, while expansion is not the currently preferred option, there are
opportunities to reduce mining costs, improve flotation performance
and reduce processing costs.
* Pajingo sold 74,000 ounces at total cash costs of $113 per ounce.
Higher cash costs (+45%) were due to the treatment of some low grade
stockpiled material during the quarter.
* Tanami sold 105,500 equity ounces at total cash costs of $257 per
ounce. Higher cash costs (+31%) were the result of a lack of feed
from a satellite pit due to a ramp failure and higher underground
haulage costs at the Callie deposit.
* Yandal sold 139,300 ounces at total cash costs of $275 per ounce.
Higher cash costs (+49%) were due to lower grades processed (-22%) and
higher than normal mill maintenance costs.
Batu Hijau (Indonesia) Q1 2003 Q1 2002
Equity copper sales (million lbs.) 69.8 67.6
Equity gold sales (000 ozs) 54.3 40.3
Net cash costs ($/lb Cu)1 $0.31 $0.42
* Batu Hijau had another impressive quarter, with a 26% reduction in net
cash costs to $0.31 per pound from the year ago quarter, driven
largely by significantly higher gold by-product credits.
* Copper sales for the quarter were 3% higher than the first quarter of
2002 as higher tons processed (+7%) and higher average grade (+8%)
more than offset marginally lower recoveries.
* Batu Hijau realized an average copper price during the quarter of
$0.76, compared to $0.77 for the year ago quarter.
Other Operations Q1 2003 Q1 2002
Equity gold sales (000 ozs) 146.4 125.5
Total cash costs ($/oz)1 $169 $163
* At Zarafshan in Uzbekistan, 60,100 equity ounces were sold in the
first quarter, a 15% increase over the year ago quarter. The increase
was largely the result of the timing of sales as production was
marginally lower than the year ago quarter. Total cash costs were
essentially unchanged from a year ago at $142 per ounce.
* At Ovacik in Turkey, 35,000 ounces were sold in the first quarter.
Total cash costs were 19% lower than the year ago quarter at $126 per
ounce, as lower grades (-33%) were more than offset by higher mill
throughput and lower mining and administrative costs.
* At Martha in New Zealand, 19,600 equity ounces were sold in the first
quarter at total cash costs of $219 per ounce. Total cash costs were
18% higher than the year ago quarter due to a longer than planned mill
maintenance shutdown and increased pit wall remedial work.
* At Minahasa in Indonesia, 31,700 equity ounces were sold in the first
quarter, a reduction of 24% over the year ago quarter. Mining ceased
at Minahasa in October 2001, however, processing of stockpiled ore is
expected to continue through the end of the year. Total cash costs
were $236 per ounce, 29% higher than the year ago quarter due to
reduced production and increased closure-related costs.
1. For a reconciliation of total cash costs per ounce or net cash costs
per pound (non-GAAP measures of performance) to costs applicable to
sales calculated and presented under GAAP, please refer to the
Supplemental Information attached.
Other Highlights
Cash Position
Cash and cash equivalents totaled $380.3 million at the end of the first
quarter. During the quarter, cash was primarily utilized for:
-- early extinquishment of debt ($135.8 million);
-- settlement of derivatives in the non-Yandal hedge books
($54.2 million in total, reported in the cash flow statement as
$50.1 million in operating activities and $4.1 million in investing
activities);
-- capital expenditures on property, plant and mine development
($81.3 million); and
-- an increase in the Company's equity investment in Australian
Magnesium Corporation, in line with the contractual obligations
assumed with the Normandy acquisition ($56.2 million).
Debt Reduction
The Company's balance sheet continues to strengthen with net debt to
capitalization dropping to approximately 18% at the end of the first quarter,
from approximately 20% at year-end 2002.
During the first quarter, the Company spent $135.8 million on the early
extinquishment of debt, recognizing a pre-tax loss on extinguishment of
$19.5 million. The Company will consider repurchasing additional long-term
debt on an opportunistic basis going forward and as a result may incur similar
losses in the future.
Australian Gold Hedge Books
In line with the Company's no-hedging philosophy, the Australian gold
hedge books were reduced by 1.44 million committed ounces and
115,000 uncommitted ounces during the first quarter. The hedge book reduction
in committed ounces was achieved through the delivery or closeout of
approximately 515,000 ounces, and the repurchase of approximately
929,500 ounces at a cost of $36.9 million.
At the end of the first quarter, the acquired Australian gold hedge books
stood at 3.7 million committed ounces and 1.4 million uncommitted ounces, with
a negative mark-to-market valuation of approximately $224 million. Three-
quarters, or $169 million, of the negative mark-to-market valuation relates to
the Yandal Operations hedge book, which is non-recourse to Newmont. Minimum
scheduled deliveries for the remaining three-quarters of 2003 are
approximately 830,000 committed ounces.
As of May 2, 2003, the Company had repurchased a further
1,031,000 committed ounces and delivered 22,000 committed ounces in the second
quarter, reducing the committed hedge position to 2.6 million ounces and the
negative mark-to-market value to approximately $140 million. Essentially, the
only remaining hedge obligations from the Australian hedge books are in the
Yandal Operations hedge book.
Newmont Capital
The Company continues to make significant progress disposing of non-core
assets and simplifying its corporate structure. Highlights include:
-- the receipt of $170.6 million from the sale of the TVX Newmont
Americas joint venture assets, with the escrowed balance of
$9.4 million received in April;
-- the exchange of the Company's 45.7% equity investment in Echo Bay for
a 13.8% interest in Kinross Gold;
-- the take-out of the minority interests in Newmont NFM was completed
on April 14 at a cost of approximately $115 million, comprising
4.4 million Newmont common shares with a market value of
approximately $105 million and cash consideration of approximately
$10 million. The Company now owns 100% of the Tanami operations.
Newmont NFM will be delisted from the ASX; and
-- the successful takeover bid for the outstanding 10.83% of Otter Gold
Mines Limited, at a cost of approximately $2 million. The Company
has initiated the compulsory acquisition process and anticipates that
it will own 100% of Otter by the end of the second quarter of 2003.
Otter was delisted from the ASX on March 24.
Exploration & Project Development
Exploration
At the end of the first quarter, there were 92 drill rigs in operation
around the world. Exploration highlights during the quarter included
continuing positive results from the Ahafo and Akyem projects in Ghana. In
addition, deep drilling in the Gold Quarry pit beneath the Dos Equis and
Chukar deposits has intersected mineralization that will be further
investigated for potential pit expansion or underground mining.
At the Ghanaian projects, the 2003 drilling program is designed to convert
mineralized material to reserves and to expand the ultimate pit limits at
Akyem. The budgeted drilling program may be increased should the Company
continue to see positive results. The Company anticipates making a project
development decision by year-end 2003.
Project Development
Development of the Gold Quarry South Layback (GQSL) and Leeville projects
in Nevada is proceeding on budget and on schedule. GQSL is scheduled to
produce its first gold in the fourth quarter of 2003. GQSL is expected to
produce 2.7 million ounces, with annual average gold sales of between
420,000 and 440,000 ounces at total cash costs of between $200 and $215 per
ounce over six years. Total capital expenditures are expected to be
approximately $37 million.
At Leeville, the sinking of a ventilation shaft and adjacent production
shaft to an ultimate depth of 2,000 feet commenced in the quarter. The
Leeville underground mine is scheduled to begin gold production in the fourth
quarter of 2005 or early in 2006. Over the current mine life of seven years,
Leeville is expected to average 500,000 to 550,000 ounces of annual gold sales
at total cash costs of between $195 and $205 per ounce. Total capital
expenditures are expected to be approximately $185 million.
Statements of Consolidated Operations
Three Months Ended March 31,
2003 2002
(unaudited)
(in thousands, except per share)
Sales and other income
Sales - gold $714,556 $482,234
Sales - base metals, net 19,433 9,370
Royalties 14,480 3,800
Gain on exchange of Echo Bay shares
for Kinross shares, net 84,337 --
Dividends, interest, foreign currency
exchange and other income 31,839 415
864,645 495,819
Costs and expenses
Costs applicable to sales - gold 394,558 320,485
Costs applicable to sales - base metals
and other 12,125 10,502
Depreciation, depletion and amortization 130,593 102,186
Exploration and research 21,472 11,567
General and administrative 26,410 21,315
Interest, net of capitalized interest 29,946 31,137
Loss on extinguishment of debt 19,530 --
Write-down of assets 7,688 8,253
Other 22,019 870
664,341 506,315
200,304 (10,496)
Gain on gold commodity derivative
instruments, net 55,025 6,331
Pre-tax income (loss) before minority
interest, equity income of affiliates
and cumulative effect of a change in
accounting principle 255,329 (4,165)
Income tax expense (62,563) (1,188)
Minority interest in income of subsidiaries (37,789) (10,550)
Equity (loss) income and impairment
of affiliates (3,189) 1,404
Net income (loss) before cumulative effect
of a change in accounting principle 151,788 (14,499)
Cumulative effect of a change in
accounting principle, net of tax (34,533) 7,701
Net income (loss) 117,255 (6,798)
Preferred stock dividends -- (1,869)
Net income (loss) applicable to
common shares $117,255 $(8,667)
Net income (loss) per common share before
cumulative effect of a change in
accounting principle, basic and diluted $0.38 $(0.06)
Cumulative effect of a change in accounting
principle per common share, basic and diluted (0.09) 0.03
Net income (loss) per common share,
basic and diluted $0.29 $(0.03)
Basic weighted average common shares
outstanding 401,890 281,467
Diluted weighted average common shares
outstanding 404,219 281,467
Cash dividends declared per common share $0.04 $0.03
Consolidated Balance Sheets
March 31, December 31,
2003 2002
(unaudited)
(in thousands)
ASSETS
Cash and cash equivalents $380,316 $401,683
Short-term investments 12,024 13,188
Accounts receivable 27,519 44,510
Inventories 503,213 498,317
Prepaid taxes 19,365 28,335
Derivative instruments 1,446 4,575
Deferred stripping costs 30,184 32,085
Deferred income tax assets 47,912 51,451
Other current assets 38,977 39,112
Current assets 1,060,956 1,113,256
Property, plant and mine development, net 2,360,336 2,317,880
Mineral interests and other
intangible assets, net 1,408,284 1,415,348
Investments 820,500 1,155,852
Marketable securities 266,444 --
Deferred stripping costs 31,565 23,302
Long-term inventories 228,828 199,761
Derivative instruments 3,986 3,022
Deferred income tax assets 834,886 761,428
Other long-term assets 146,704 140,093
Goodwill 3,006,086 3,024,576
Total assets $10,168,575 $10,154,518
LIABILITIES
Current portion of long-term debt $82,858 $115,322
Accounts payable 126,879 105,277
Deferred income tax liabilities 7,478 28,469
Derivative instruments 53,371 74,999
Other accrued liabilities 431,695 369,396
Current liabilities 702,281 693,463
Long-term debt 1,577,054 1,701,282
Reclamation and remediation liabilities 423,617 288,536
Deferred revenue from sale of
future production 53,841 53,841
Derivative instruments 189,925 388,659
Deferred income tax liabilities 678,042 656,452
Employee related benefits 225,777 234,103
Other long-term liabilities 369,746 364,376
Total liabilities 4,220,284 4,380,712
Minority interest in subsidiaries 375,124 354,558
STOCKHOLDERS' EQUITY
Total stockholders' equity 5,573,167 5,419,248
Total liabilities and
stockholders' equity $10,168,575 $10,154,518
Statement of Consolidated Cash Flows
Three Months Ended March 31,
2003 2002
(unaudited)
(in thousands)
Operating activities:
Net income (loss) $117,255 $(6,798)
Adjustments to reconcile net income
(loss) to net cash provided by
operating activities:
Depreciation, depletion and
amortization 130,593 102,186
Amortization of deferred stripping
costs, net (6,362) 6,049
Deferred tax benefit (35,400) (4,293)
Foreign currency exchange loss (19,973) 3,621
Minority interest, net of dividends 37,789 10,550
Undistributed (gains) losses of
affiliated companies 8,514 (1,404)
Write-down of assets 7,688 8,253
Cumulative effect of a change in
accounting principle, net of tax 34,533 (7,701)
Loss on extinguishment of debt 19,530 --
Gain on exchange of Echo Bay shares
for Kinross shares, net (84,337) --
Loss (gain) on sale of assets and other 1,168 (4,451)
Unrealized gain on derivative
instruments (64,849) (6,331)
(Increase) decrease in operating assets:
Accounts receivable 5,855 18,920
Inventories (23,480) 5,305
Other assets (1,991) 16,642
Increase (decrease) in operating
liabilities:
Accounts payable and other accrued
liabilities 61,018 (40,744)
Derivatives (17,328) --
Early settlement of derivatives
classified as cash flow hedges (32,779) --
Other liabilities (1,448) (28,649)
Net cash provided by operating
activities 135,996 71,155
Investing activities:
Additions to property, plant and
mine development (81,311) (51,830)
Advances to joint ventures and affiliates (56,224) (24,750)
Proceeds from sale of short-term
investments -- 406,731
Proceeds from the sale of
TVX Newmont Americas 170,625 --
Early settlement of other derivatives (4,097) --
Cash consideration for Normandy shares -- (440,528)
Cash received from acquisitions, net of
transaction costs -- 422,215
Proceeds from asset sales and other 2,381 269
Net cash provided by investing activities 31,374 312,107
Financing activities:
Proceeds from long-term debt -- 450,431
Repayment of long-term debt (182,787) (475,244)
Dividends paid on common and
preferred stock (16,089) (13,792)
Proceeds from stock issuance and other 934 15,739
Net cash used in financing activities (197,942) (22,866)
Effect of exchange rate changes on cash 9,205 1,731
Net change in cash and cash equivalents (21,367) 362,127
Cash and cash equivalents at beginning
of period 401,683 149,431
Cash and cash equivalents at end of period $380,316 $511,558
Operating Statistics Summary
North America South America Australia
Three Months Ended
March 31, 2003 2002 2003 2002 2003 2002
Production Costs
Per Ounce:
Direct mining and
production costs $234 $222 $130 $142 $222 $153
Capitalized mining
& other (17) 5 (4) (3) 1 6
Cash operating
costs 217 227 126 139 223 159
Royalties and
production taxes 9 4 4 3 12 8
Total cash costs 226 231 130 142 235 167
Reclamation and
mine closure costs 3 3 4 3 2 4
Total costs
applicable
to sales 229 234 134 145 237 171
Non-cash inventory
adjustment -- 1 -- -- -- 13
Depreciation and
amortization 56 50 54 70 60 56
Depreciation and
amortization
adjustment -- (1) -- -- -- 1
Total production
costs $285 $284 $188 $215 $297 $241
Consolidated gold
sales (000 ozs.) 747.4 727.4 711.6 552.1 425.2 247.0
Equity gold sales
(000 ozs.) 747.4 727.4 386.9 308.7 407.8 238.7
Average realized
price per equity
ounce $349 $291 $352 $290 $349 $295
Other (1) Equity Investments Total
and Other (2) (3)
Three Months Ended
March 31, 2003 2002 2003 2002 2003 2002
Production Costs
Per Ounce:
Direct mining and
production costs $161 $159 -- -- $201 $187
Capitalized mining
& other 4 1 -- -- (8) 3
Cash operating
costs 165 160 -- -- 193 190
Royalties and
production taxes 4 3 -- -- 8 5
Total cash costs 169 163 -- -- 201 195
Reclamation and
mine closure costs 2 3 -- -- 3 3
Total costs
applicable
to sales 171 166 -- -- 204 198
Non-cash inventory
adjustment -- 3 -- -- -- 3
Depreciation and
amortization 65 61 -- -- 57 57
Depreciation and
amortization
adjustment -- (1) -- -- -- (1)
Total production
costs $236 $229 -- -- $261 $257
Consolidated gold
sales (000 ozs.) 149.8 128.2 2.0 -- 2,036.0 1,654.7
Equity gold sales
(000 ozs.) 146.4 125.5 92.0 64.5 1,780.5 1,464.8
Average realized
price per equity
ounce $352 $290 -- -- $351 $292
Copper Summary
Equity copper
production
(millions of lbs.) 99.4 126.9
Equity copper sales
(millions of lbs.) 91.1 77.7
Net cash cost per
equity pound $0.36 $0.52
Average realized
price per pound $0.78 $0.77
(1) Other includes Ovacik (Turkey), Zarafshan (Uzbekistan), Minahasa
(Indonesia) and Martha (New Zealand).
(2) Equity investments comprise Batu Hijau, TVX Newmont Americas and Echo
Bay Mining Limited.
(3) Includes 2,000 ounces from the wholly-owned Golden Grove zinc/copper
mine in 2003.
Updated 2003 Guidance
Equity Gold Total
Sales Cash Costs
(000 oz) ($/oz)
North America
Nevada 2,550 $220
Mesquite 45 $160
Golden Giant 230 $225
Holloway 75 $240
La Herradura 70 $155
Sub-total ~2,900-3,000 ~$215-$220
South America
Yanacocha 1,300 $120
Kori Kollo 135 $220
Sub-total ~1,415-1,475 ~$125-$130
Australia
Kalgoorlie 360 $270
Pajingo 325 $120
Tanami 560 $240
Yandal 620 $260
Sub-total ~1,850-1,900 ~$225-$230
Other
Martha 100 $190
Zarafshan 210 $150
Minahasa 100 $260
Ovacik 140 $150
Sub-total ~520-570 ~$170-180
Equity Investments
Batu Hijau 275 --
TOTAL ~7,100-7,300 ~$195-$200
Equity
Copper & Net
Zinc Sales Cash Costs
(million lbs) ($/lb)
Batu Hijau - Copper ~340-360 ~$0.28-$0.30
Golden Grove - Copper ~40-45 ~$0.60-$0.63
Golden Grove - Zinc ~180-190 ~$0.28-$0.31
Financial Projections (in millions, except tax rate)
Royalty revenue $40 - $50
Depreciation, depletion & amortization $570 - $600
Exploration, research and development $95 - $100
General and administrative $95 - $100
Interest expense $90 - $100
Tax rate (assuming $340/oz gold) 18% - 25%
Capital expenditures $560 - $580
Sensitivity to Changes in the Gold Price
An annualized $10 change in the gold price changes annual net income by
approximately $42 million, assuming all other factors remain constant.
An annualized $10 change in the gold price changes annual cash generated
by operating activities by approximately $53 million, assuming all other
factors remain constant.
Supplemental Information
1. Gold Production Summary - Americas
Nevada Canada
Three months ended March 31, 2003 2002 2003 2002
Tons Mined (000 dry short tons):
Open-Pit 44,860 34,249 n/a n/a
Underground 406 292 336 399
Tons Milled/Processed (000):
Oxide 411 1,128 346 408
Refractory 2,395 2,101 n/a n/a
Leach 3,066 4,277 n/a n/a
Average Ore Grade (oz/ton):
Oxide 0.194 0.104 0.255 0.212
Refractory 0.215 0.213 n/a n/a
Leach 0.028 0.026 n/a n/a
Average Mill Recovery Rate:
Oxide 88.6% 70.1% 95.3% 94.7%
Refractory 89.5% 87.9% n/a n/a
Ounces Produced (000): 626.3 607.7 84.5 88.9
Equity Ounces Produced (000):
Oxide 73.4 90.5 84.5 88.9
Refractory 458.1 393.9 n/a n/a
Leach 94.8 123.3 n/a n/a
Total 626.3 607.7 84.5 88.9
Equity Ounces Sold (000) 632.9 606.1 83.3 90.2
Production Costs Per Ounce:
Direct mining and production costs $235 $226 $256 $207
Capitalized mining & other (20) 7 2 1
Cash operating costs 215 233 258 208
Royalties and production taxes 11 5 1 1
Total cash costs 226 238 259 209
Reclamation and mine closure costs 2 2 6 5
Total costs applicable to sales 228 240 265 214
Non-cash inventory adjustment -- 1 -- --
Depreciation and amortization 50 46 102 70
Depreciation and amortization
adjustment -- (1) -- --
Total production costs $278 $286 $367 $284
Yanacocha, Kori Kollo,
Peru Bolivia
Three months ended March 31, 2003 2002 2003 2002
Tons Mined (000 dry short tons):
Open-Pit 47,460 48,719 4,398 4,487
Underground n/a n/a n/a n/a
Tons Milled/Processed (000):
Oxide n/a n/a n/a n/a
Refractory n/a n/a 1,794 1,852
Leach 32,822 30,729 1,476 1,435
Average Ore Grade (oz/ton):
Oxide n/a n/a n/a n/a
Refractory n/a n/a 0.037 0.049
Leach 0.027 0.020 0.017 0.018
Average Mill Recovery Rate:
Oxide n/a n/a n/a n/a
Refractory n/a n/a 64.3% 57.1%
Ounces Produced (000): 639.4 471.5 57.8 70.1
Equity Ounces Produced (000):
Oxide n/a n/a n/a n/a
Refractory n/a n/a 37.3 46.6
Leach 328.3 242.1 13.5 15.1
Total 328.3 242.1 50.8 61.7
Equity Ounces Sold (000) 335.1 248.1 51.8 60.6
Production Costs Per Ounce:
Direct mining and production costs $121 $135 $183 $170
Capitalized mining & other (2) (2) (11) (7)
Cash operating costs 119 133 172 163
Royalties and production taxes 5 4 -- --
Total cash costs 124 137 172 163
Reclamation and mine closure costs 2 3 8 4
Total costs applicable to sales 126 140 180 167
Non-cash inventory adjustment -- -- -- --
Depreciation and amortization 58 76 36 45
Depreciation and amortization
adjustment -- -- -- --
Total production costs $184 $216 $216 $212
Other (1)
Three months ended March 31, 2003 2002
Tons Mined (000 dry short tons):
Open-Pit 2,758 2,867
Underground n/a n/a
Tons Milled/Processed (000):
Oxide n/a n/a
Refractory n/a n/a
Leach 957 919
Average Ore Grade (oz/ton):
Oxide n/a n/a
Refractory n/a n/a
Leach 0.026 0.026
Average Mill Recovery Rate:
Oxide n/a n/a
Refractory n/a n/a
Ounces Produced (000): 31.2 31.1
Equity Ounces Produced (000):
Oxide n/a n/a
Refractory n/a n/a
Leach 31.2 31.1
Total 31.2 31.1
Equity Ounces Sold (000) 31.2 31.1
Production Costs Per Ounce:
Direct mining and production costs $145 $175
Capitalized mining & other (4) (9)
Cash operating costs 141 166
Royalties and production taxes 8 3
Total cash costs 149 169
Reclamation and mine closure costs 3 2
Total costs applicable to sales 152 171
Non-cash inventory adjustment -- --
Depreciation and amortization 56 73
Depreciation and amortization
adjustment -- --
Total production costs $208 $244
(1) Other includes La Herradura and Mesquite
2. Gold Production Summary - Australia
Kalgoorlie Pajingo
Three Months Ended March 31, 2003 2002 2003 2002
Tons Mined (000 dry short tons) 11,195 5,800 173 157
Tons Milled/Processed 1,637 918 193 164
Average Ore Grade (oz/ton) 0.067 0.061 0.395 0.393
Average Mill Recovery Rate 85.6% 83.2% 96.8% 97.0%
Ounces Produced (000) 91.8 48.3 73.3 64.0
Equity Ounces Produced (000) 91.8 48.3 73.3 64.0
Equity Ounces Sold (000) 89.0 41.1 74.0 57.0
Production Costs Per Ounce:
Direct mining and production costs $238 $186 $107 $79
Capitalized mining & other -- 21 (4) (6)
Cash operating costs 238 207 103 73
Royalties and production taxes 9 7 10 5
Total cash costs 247 214 113 78
Reclamation and mine closure costs 5 6 -- 4
Total costs applicable to sales 252 220 113 82
Non-cash inventory adjustment -- 43 -- 10
Depreciation and amortization 18 36 75 32
Depreciation and amortization
adjustment -- (8) -- 29
Total production costs $270 $291 $188 $153
Tanami Yandal
Three Months Ended March 31, 2003 2002 2003 2002
Tons Mined (000 dry short tons) 5,359 3,127 855 3,363
Tons Milled/Processed 1,098 503 1,357 755
Average Ore Grade (oz/ton) 0.130 0.125 0.111 0.142
Average Mill Recovery Rate 95.7% 92.0% 92.1% 92.1%
Ounces Produced (000) 135.4 67.2 145.1 98.6
Equity Ounces Produced (000) 116.3 58.1 145.1 98.6
Equity Ounces Sold (000) 105.5 53.5 139.3 87.1
Production Costs Per Ounce:
Direct mining and production costs $253 $185 $250 $165
Capitalized mining & other (16) -- 16 12
Cash operating costs 237 185 266 177
Royalties and production taxes 20 11 9 7
Total cash costs 257 196 275 184
Reclamation and mine closure costs (2) 3 5 6
Total costs applicable to sales 255 199 280 190
Non-cash inventory adjustment -- 6 -- 5
Depreciation and amortization 62 33 76 96
Depreciation and amortization
adjustment -- 18 -- (24)
Total production costs $317 $256 $356 $267
3. Gold Production Summary - Other
Zarafshan, Ovacik,
Uzbekistan Turkey
Three Months Ended March 31, 2003 2002 2003 2002
Tons Mined (000 dry short tons) n/a n/a 890 583
Tons Milled/Processed:
Leach 1,994 1,902 -- --
Mill n/a n/a 127 41
Average Ore Grade (oz/ton) 0.044 0.048 0.307 0.457
Average Mill Recovery Rate n/a n/a 93.2% 92.4%
Ounces Produced (000) 57.9 62.4 37.5 18.1
Equity Ounces Produced (000) 57.9 62.4 37.5 18.1
Equity Ounces Sold (000) 60.1 52.4 35.0 16.8
Production Costs Per Ounce:
Direct mining and production costs $140 $140 $108 $149
Capitalized mining & other 2 3 6 (4)
Cash operating costs 142 143 114 145
Royalties and production taxes -- -- 12 10
Total cash costs 142 143 126 155
Reclamation and mine closure costs 2 1 1 3
Total costs applicable to sales 144 144 127 158
Non-cash inventory adjustment -- -- -- 20
Depreciation and amortization 42 44 97 50
Depreciation and amortization
adjustment -- -- -- (7)
Total production costs $186 $188 $224 $221
Martha, Minahasa,
New Zealand Indonesia
Three Months Ended March 31, 2003 2002 2003 2002
Tons Mined (000 dry short tons) 764 664 -- --
Tons Milled/Processed:
Leach -- -- -- --
Mill 293 166 185 166
Average Ore Grade (oz/ton) 0.096 0.088 0.179 0.234
Average Mill Recovery Rate 90.2% 90.2% 90.0% 92.5%
Ounces Produced (000) 25.1 13.9 30.5 40.3
Equity Ounces Produced (000) 23.4 13.9 28.7 37.9
Equity Ounces Sold (000) 19.6 14.5 31.7 41.8
Production Costs Per Ounce:
Direct mining and production costs $209 $186 $228 $177
Capitalized mining & other 10 (1) 3 3
Cash operating costs 219 185 231 180
Royalties and production taxes -- -- 5 3
Total cash costs 219 185 236 183
Reclamation and mine closure costs 3 11 4 3
Total costs applicable to sales 222 196 240 186
Non-cash inventory adjustment -- 6 -- --
Depreciation and amortization 101 127 50 64
Depreciation and amortization
adjustment -- (2) -- --
Total production costs $323 $327 $290 $250
4. Base Metals - Batu Hijau and Golden Grove
Three Months Ended March 31,
Batu Hijau 2003 2002
Total tons mined (000) 51,636 53,163
Dry tons processed (000) 12,588 11,809
Average copper grade 0.69% 0.64%
Average recovery rate 87.9% 88.3%
Copper pounds produced (000) 152,308 132,689
Equity copper pounds produced (000) 85,673 74,638
Equity copper pounds sold (000) 69,848 67,600
Copper price per pound $0.76 $0.77
Equity ounces of gold sold (000) 54.3 40.3
Equity net cash cost per pound $0.31 $0.42
Equity noncash cost per pound 0.21 0.23
Equity total production cost per pound $0.52 $0.65
Three Months Ended March 31,
Golden Grove 2003 2002
Total tons mined 323,215 161,819
Dry tons processed 346,141 147,331
Average copper grade 5.79% 4.02%
Average copper recovery rate 90.8% 91.7%
Copper pounds produced (000) 13,747 52,302
Copper pounds sold (000) 21,289 10,135
Copper price per pound $0.84 $0.72
Copper cash cost per pound $0.53 $1.05
Average zinc grade 12.60% 13.30%
Average zinc recovery rate 92.6% 88.4%
Zinc produced pounds (000) 39,805 5,878
Zinc sold pounds (000) 24,913 --
Zinc price per pound $0.36 --
Zinc cash cost per pound $0.31 --
Ounces of gold sold (000) 2.0 --
Ounces of silver sold (000) 223.3 40.8
5. Reconciliation of Costs Applicable to Sales to Total Cash Costs Per
Ounce and Per pound, and Total Production Costs Per Ounce and Per
Pound
The total cash costs and total production costs per ounce or pound are
non-GAAP performance measures that are intended to provide investors with
information about the cash generating capacities and profitability of
Newmont's mining operations. Newmont's management uses these measures for the
same purpose and for monitoring the performance of its mining operations.
These measures differ from measures determined in accordance with GAAP and
should not be considered in isolation or as a substitute for measures of
performance or liquidity determined in accordance with GAAP. These measures
were developed in conjunction with gold mining companies associated with the
Gold Institute in an effort to provide a level of comparability; however,
Newmont's measures may not be comparable to similarly-titled measures of other
companies.
Three Months Total
Ended La Golden North
March 31, Nevada Mesquite Herradura Giant Holloway America
2003
Costs applicable
to sales
under GAAP $144.5 $2.6 $2.2 $16.7 $5.4 $171.4
Minority
interest -- -- -- -- -- --
Reclamation
accrual (1.2) (0.1) -- (0.5) (0.1) (1.9)
Non-Cash
inventory
adjustment -- -- -- -- -- --
Other (0.4) -- -- -- -- (0.4)
Total cash cost
for per ounce
calculations 142.9 2.5 2.2 16.2 5.3 169.1
Reclamation
and other 1.2 0.1 -- 0.5 0.1 1.9
Depreciation,
depletion and
amortization 31.6 0.9 0.8 7.2 1.3 41.8
Minority
interest -- -- -- -- -- --
Total production
cost for per ounce
calculations $175.7 $3.5 $3.0 $23.9 $6.7 $212.8
Equity ounces
sold (000) 632.9 14.6 16.6 65.2 18.1 747.4
Equity cash cost
per ounce sold $226 $173 $128 $249 $294 $226
Equity total
production cost
per ounce sold $278 $239 $180 $366 $370 $285
Three Months
Ended Kori Total South
March 31, Yanacocha Kollo America Pajingo Kalgoorlie Yandal
2003
Costs applicable
to sales
under GAAP $85.5 $10.6 $96.1 $8.4 $22.4 $39.0
Minority
interest (43.2) (1.3) (44.5) -- -- --
Reclamation
accrual (0.8) (0.4) (1.2) -- (0.5) (0.7)
Non-Cash
inventory
adjustment -- -- -- -- -- --
Other 0.1 -- 0.1 -- -- --
Total cash cost
for per ounce
calculations 41.6 8.9 50.5 8.4 21.9 38.3
Reclamation
and other 0.8 0.4 1.2 -- 0.5 0.7
Depreciation,
depletion and
amortization 35.5 2.2 37.7 5.6 1.6 10.6
Minority
interest (16.2) (0.3) (16.5) -- -- --
Total production
cost for per ounce
calculations $61.7 $11.2 $72.9 $14.0 $24.0 $49.6
Equity ounces
sold (000) 335.1 51.8 386.9 74.0 89.0 139.3
Equity cash cost
per ounce sold $124 $172 $130 $113 $247 $275
Equity total
production cost
per ounce sold $184 $216 $188 $188 $270 $356
Three Months
Ended NFM Total Zarafshan,
March 31, Tanami Australia Uzbekistan Minahasa Martha Ovacik
2003
Costs applicable
to sales
under GAAP $31.6 $101.4 $8.6 $8.1 $4.7 $4.4
Minority
interest (4.4) (4.4) -- -- (0.3) --
Reclamation
accrual 0.1 (1.1) (0.1) -- (0.1) (0.1)
Non-Cash
inventory
adjustment -- -- -- -- -- --
Other -- -- -- (0.5) -- --
Total cash cost
for per ounce
calculations 27.3 95.9 8.5 7.6 4.3 4.3
Reclamation
and other (0.1) 1.1 0.1 -- 0.1 0.1
Depreciation,
depletion and
amortization 7.6 25.4 2.6 1.7 2.0 3.4
Minority
interest (1.1) (1.1) -- (0.1) -- --
Total production
cost for per ounce
calculations $33.7 $121.3 $11.2 $9.2 $6.4 $7.8
Equity ounces
sold (000) 105.5 407.8 60.1 31.7 19.6 35.0
Equity cash cost
per ounce sold $257 $235 $142 $236 $219 $126
Equity total
production cost
per ounce sold $317 $297 $186 $290 $323 $224
Three Months Total
Ended Other Total Golden Other Non-
March 31, International Gold Grove Gold Consolidated
2003
Costs applicable
to sales
under GAAP $25.8 $394.7 $11.9 $0.1 $406.7
Minority
interest (0.3) (49.2) -- -- (49.2)
Reclamation
accrual (0.3) (4.5) (0.1) -- (4.6)
Non-Cash
inventory
adjustment -- -- -- -- --
Other (0.5) (0.8) (11.8) (0.1) (12.7)
Total cash cost
for per ounce
calculations 24.7 340.2 -- -- 340.2
Reclamation
and other 0.3 4.5 0.1 -- 4.6
Depreciation,
depletion and
amortization 9.7 114.6 7.1 8.9 130.6
Minority
interest (0.1) (17.7) (7.2) (8.9) (33.8)
Total production
cost for per ounce
calculations $34.6 $441.6 -- -- $441.6
Equity ounces
sold (000) 146.4 1,688.5 n/a n/a 1,688.5
Equity cash cost
per ounce sold $169 $201 n/a n/a $201
Equity total
production cost
per ounce sold $236 $261 n/a n/a $261
Three Months Total
Ended La Golden North
March 31, Nevada Mesquite Herradura Giant Holloway America
2002
Costs applicable
to sales
under GAAP $146.5 $2.4 $2.9 $13.7 $5.6 $171.1
Minority
interest -- -- -- -- -- --
Reclamation
accrual (1.5) -- -- (0.3) (0.1) (1.9)
Non-Cash
inventory
adjustment (0.8) -- -- -- -- (0.8)
Other -- -- -- -- -- --
Total cash cost
for per ounce
calculations 144.2 2.4 2.9 13.4 5.5 168.4
Reclamation
and other 2.3 -- -- 0.3 0.1 2.7
Depreciation,
depletion and
amortization 26.8 1.5 0.8 4.5 1.8 35.4
Minority
interest -- -- -- -- -- --
Total production
cost for per ounce
calculations $173.3 $3.9 $3.7 $18.2 $7.4 $206.5
Equity ounces
sold (000) 606.1 15.5 15.6 62.3 27.9 727.4
Equity cash cost
per ounce sold $238 $156 $183 $215 $194 $231
Equity total
production cost
per ounce sold $286 $251 $236 $292 $266 $284
Three Months
Ended Kori Total South
March 31, Yanacocha Kollo America Pajingo Kalgoorlie Yandal
2002
Costs applicable
to sales
under GAAP $69.2 $11.5 $80.7 $5.2 $10.8 $17.0
Minority
interest (35.0) (1.4) (36.4) -- -- --
Reclamation
accrual (0.8) (0.2) (1.0) (0.2) (0.2) (0.5)
Non-Cash
inventory
adjustment -- -- -- (0.6) (1.7) (0.5)
Other 0.6 -- 0.6 -- -- --
Total cash cost
for per ounce
calculations 34.0 9.9 43.9 4.4 8.9 16.0
Reclamation
and other 0.8 0.2 1.0 0.8 1.9 1.0
Depreciation,
depletion and
amortization 35.0 3.1 38.1 3.5 1.2 6.2
Minority
interest (16.2) (0.4) (16.6) -- -- --
Total production
cost for per ounce
calculations $53.6 $12.8 $66.4 $8.7 $12.0 $23.2
Equity ounces
sold (000) 248.1 60.6 308.7 57.0 41.1 87.1
Equity cash cost
per ounce sold $137 $163 $142 $78 $214 $184
Equity total
production cost
per ounce sold $216 $212 $215 $153 $291 $267
Three Months
Ended NFM Total Zarafshan,
March 31, Tanami Australia Uzbekistan Minahasa Martha Ovacik
2002
Costs applicable
to sales
under GAAP $12.8 $45.8 $7.5 $8.3 $2.9 $3.0
Minority
interest (1.7) (1.7) -- -- -- --
Reclamation
accrual (0.2) (1.1) (0.1) -- (0.2) (0.1)
Non-Cash
inventory
adjustment (0.3) (3.1) -- -- (0.1) (0.3)
Other -- -- -- (0.5) -- --
Total cash cost
for per ounce
calculations 10.6 39.9 7.4 7.8 2.6 2.6
Reclamation
and other 0.5 4.2 0.1 -- 0.3 0.4
Depreciation,
depletion and
amortization 3.1 14.0 2.3 2.9 1.8 0.7
Minority
interest (0.5) (0.5) -- (0.2) -- --
Total production
cost for per ounce
calculations $13.7 $57.6 $9.8 $10.5 $4.7 $3.7
Equity ounces
sold (000) 53.5 238.7 52.4 41.8 14.5 16.8
Equity cash cost
per ounce sold $196 $167 $143 $183 $185 $155
Equity total
production cost
per ounce sold $256 $241 $188 $250 $327 $221
Three Months Total
Ended Other Total Golden Other Non-
March 31, International Gold Grove Kasese Gold Consolidated
2002
Costs applicable
to sales
under GAAP $21.7 $319.3 $8.4 $2.0 $1.3 $331.0
Minority
interest -- (38.1) -- -- -- (38.1)
Reclamation
accrual (0.4) (4.4) -- -- -- (4.4)
Non-Cash
inventory
adjustment (0.4) (4.3) -- -- -- (4.3)
Other (0.5) 0.1 (8.4) (2.0) (1.3) (11.6)
Total cash cost
for per ounce
calculations 20.4 272.6 -- -- -- 272.6
Reclamation
and other 0.8 8.7 -- -- -- 8.7
Depreciation,
depletion and
amortization 7.7 95.2 0.3 -- 6.7 102.2
Minority
interest (0.2) (17.3) (0.3) -- (6.7) (24.3)
Total production
cost for per ounce
calculations $28.7 $359.2 -- -- -- $359.2
Equity ounces
sold (000) 125.5 1,400.3 n/a n/a n/a 1,400.3
Equity cash cost
per ounce sold $163 $195 n/a n/a n/a $195
Equity total
production cost
per ounce sold $229 $257 n/a n/a n/a $257
6. Reconciliation of Batu Hijau Costs Applicable to Sales to Net Cash
Costs Per Pound
Three Months Ended March 31, 2003 2002
Costs applicable to sales under GAAP $21,117 $32,496
Smelting and refining 20,246 21,292
Minority interest (18,836) (24,698)
Reclamation (1,098) (847)
Total cash cost for per pound calculation 21,429 28,243
Reclamation 1,098 847
Depreciation, depletion and amortization 14,134 14,780
Total production cost for per pound calculation $36,661 $43,870
Equity copper pounds sold (000) 69,848 67,600
Equity net cash cost per pound $0.31 $0.42
Equity total production cost per pound $0.52 $0.65
7. Reconciliation of Golden Grove Costs Applicable to Sales to Total
Copper and Zinc Cash Costs Per Pound
Three Months Ended March 31,
2003 2002
Total Copper Zinc Total Copper Zinc
Costs applicable
to sales
under GAAP $11,828 $7,647 $4,181 $8,544 $8,544 --
Smelting and
refining 7,228 3,640 3,588 2,075 2,075 --
Total cash cost
for per pound
calculation $19,056 $11,287 $7,769 $10,619 $10,619 --
Total pounds
sold (000) n/a 21,289 24,913 n/a 10,135 --
Equity cash
cost per
pound sold n/a $0.53 $0.31 n/a $1.05 --
8. Gold Hedge Position - Current Maturity Summary (1) (000 ounces)
Australian Gold Hedge Books Newmont Gold
Hedge Book
Gold Put Gold Forward Convertible Sold Price
Option Sales Put Options Combination Capped
Contracts Contracts & Other Put Options Contracts
Instruments (3)
(2)
Years Ozs Price Ozs Price Ozs Price Ozs Price Ozs Price
(4) (4) (4) (4) (4)
2003 240 $306 782 $311 46 $331
2004 291 $306 386 $307 37 $331 (30) $353
2005 445 $323 193 $327 82 $329 (108) $354 500 $350
2006 169 $349 363 $345 65 $325 (124) $357
2007 22 $395 361 $357 107 $345 (124) $361
2008 93 $367 106 $340 900 $331 (62) $363 1,000 $384
2009 120 $367 300 $399 600 $381
2010 208 $417
2011 208 $427 250 $392
Total/
Average
(1) 1,380 $328 2,191 $326 1,951 $361 (448) $358 2,350 $377
The mark-to-market value of the Australian gold hedge books was negative
$224 million at March 31, 2003. The breakdown of this is as follows:
* Newmont Yandal Operations negative $169 million; and
* Other negative $55 million
The following table shows the approximate sensitivities of the US$ mark-
to-market value of the Australian gold hedge books to certain market variables
as of March 31, 2003 (actual changes in the timing and amount of the following
variables may differ from the assumed changes below):
Change in
Mark-to-Market
Market Variables Change in Variable Value (millions)
A$ Interest Rates +/-1.0% -/+$31.9
US$/A$ Exchange Rates +/-US$0.01 +/-$23.3
Gold Lease Rates +/-1.0% +/-$7.5
US$ Interest Rates +/-1.0% -/+$11.0
US$ Gold Price/oz. +/-$1.00 -/+$5.9
Notes:
1. For more detailed descriptions, definitions and explanations, refer
to the Company's Quarterly Report on Form 10-Q for the quarter ended
March 31, 2003.
2. Convertible Put Options and Other are comprised of the following:
a. Convertible option contracts;
b. Knock-out/knock-in option contracts;
c. Indexed forward contracts; and
d. 600,000 ounces of a US$-to-gold swap contract maturing in
2008.
3. Sold Combination Options includes 240,000 ounces of sold convertible
puts opened by a right-to-break closeout in December 2002 and
208,000 ounces of sold puts opened by a right-to-break closeout in
January 2003.
4. Prices quoted are gross contract prices, which represent the gross
cash flow per ounce of each contract. Not included in these prices
are the additional cash outflows associated with borrowing gold over
the life of the contract where the contracts are floating in nature.
The rate at which gold is borrowed is determined over the life of the
contract based on the prevailing market gold lease rate for the time
period that the borrowing is fixed. The borrowing can be fixed for
varying periods over the life of the contract.
Investor Information
Corporate Address
Newmont Mining Corporation
1700 Lincoln Street
Denver, CO 80203
Telephone: (303) 863-7414
Facsimile: (303) 837-5837
Web Site
www.newmont.com
Stock Exchange Listings - Ticker
New York Stock Exchange NEM
Toronto Stock Exchange NMC
Australian Stock Exchange NEM
NYSE Share Price Performance (Q1)
Jan 03 Feb 03 Mar 03 Q1 03
High $30.15 $29.79 $27.25 $30.15
Low $27.25 $26.85 $24.37 $24.37
Last $28.95 $27.33 $26.15 $26.15
Shareholder Information
Please contact the respective stock transfer agent acting as transfer
agent, registrar and dividend disbursing agent for the securities listed
below. Information regarding shareholder accounts, dividend payments, stock
transfer and related matters for the respective securities should be directed
to the transfer agent listed.
For holders of Newmont Stock (NYSE: NEM)
Mellon Investor Services, LLC
85 Challenger Road
Ridgefield Park, NJ 07660
Toll free: (888) 216-8104
(between 8:00 a.m. and 8:00 p.m. Eastern Time)
Internet: www.melloninvestor.com
For Holders of Newmont Exchangeable Shares (TSX: NMC)
Computershare Trust Company of Canada
100 University Avenue, 9th Floor
Toronto, Ontario M5J 2Y1
Canada
Toll-Free: (800) 663-9097
Telephone: (416) 981-9633
Internet: caregistryinfo@computershare.com
For Holders of Newmont CHESS Depository Interests
(CDIs trading on ASX: NEM)
National Shareholder Services Pty Limited
100 Hutt Street, Adelaide 5000
South Australia
Australia
Telephone: 61-8-8232-0003
Facsimile: 61-8-8232-0072
The Company's first quarter earnings conference call and web cast
presentation is scheduled for Wednesday, May 7, 2003 beginning at 3:00 p.m.
Eastern Standard Time (1:00 p.m. Mountain Standard Time).
To participate Dial-In Number: (630) 395-0047
Leader: Russell Ball
Password: Newmont
The conference call will also be simultaneously carried on our web site
under Investor Information/Presentations and will be archived there for a
limited time.
Cautionary Statement
This news release contains "forward-looking statements" within the meaning
of Section 27A of the Securities Act of 1933, as amended, and 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 earnings, and the
sensitivity of earnings to the gold and other metals prices; (ii) estimates of
future gold and other metals production and sales, (iii) estimates of future
cash costs; (iv) estimates of future cash flows, and the sensitivity of cash
flows to the gold and other metals prices; (v) statements regarding future
debt repayments; (vi) estimates of future capital expenditures; (vii)
estimates of reserves, and statements regarding future exploration results and
the replacement of reserves; and (viii) statements regarding modifications to
the Company's hedge position. 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,
as well as 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 Annual
Report on Form 10-K for the year ended December 31, 2002, 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 any 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.