Exhibit 99.1
Newmont Mining Reports Second Quarter Net Income of $90.8 Million
($0.22 Per Share) and Six Month Net Income of $208.1 Million ($0.52 Per Share)
DENVER, July 31 /PRNewswire-FirstCall/ -- Newmont Mining Corporation
(the Company) (NYSE: NEM) today announced second quarter net income of
$90.8 million ($0.22 per share), compared with net income of $67.1 million
($0.17 per share) for the second quarter of 2002. Newmont earned net income
of $208.1 million ($0.52 per share) for the six months ended June 30, 2003, a
significant increase from the $58.5 million ($0.17 per share) reported a year
ago. Second quarter highlights included:
* Equity gold sales(1) of 1.824 million ounces at total cash costs of
$212 per ounce;(2)
* Net cash provided by operating activities of $177.2 million, before
settlement of derivative instruments of $88.2 million;
* Committed ounces hedged reduced by a further 3.5 million ounces,
substantially eliminating the Australian gold hedge books. The mark-
to-market valuation at quarter end was negative $19 million; and
* Net debt to total capitalization ratio reduced to approximately 16%.
Wayne W. Murdy, Chairman and Chief Executive Officer of Newmont, said:
"Our first half results reflect the strength of our worldwide operations as we
generated approximately $346 million in cash from operating activities before
the settlement of derivative instruments. In addition, our exploration team
had another successful quarter, and we expect to increase reserves after
depletion in 2003."
Second Quarter Six Months
2003 2002 2003 2002
Financial (in millions,
except per share)
Revenues $747.2 $643.7 $1,495.7 $1,139.1
Net cash provided by
operating activities $89.0 $126.9 $224.9 $198.1
Net income applicable
to common shares $90.8 $67.1 $208.1 $58.5
Net income per
common share, basic $0.22 $0.17 $0.52 $0.17
Operating
Equity gold sales
(000 ounces)(1) 1,823.9 1,863.2 3,604.4 3,328.0
Average realized
price ($/oz) $353 $314 $352 $304
Total cash
costs ($/oz)(2) $212 $196 $207 $195
Total production
costs ($/oz)(2) $277 $255 $269 $256
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
Second quarter net income applicable to common shares was $90.8 million
($0.22 per share), compared with net income of $67.1 million ($0.17 per share)
for the second quarter of 2002. For the first six months, net income
applicable to common shares was $208.1 million ($0.52 per share), compared
with net income of $58.5 million ($0.17 per share) for the second half of
2002.
During the quarter, the Company sold 1,823,900 equity ounces, slightly
lower than the 1,863,200 equity ounces sold a year ago. The reduction
reflects the January 2003 sale of the Company's interest in the TVX Newmont
Americas joint venture and the exchange of the Company's 45.7% interest in
Echo Bay for an approximate 13.8% interest in Kinross Gold. The average
realized gold price during the quarter was $353 per ounce, a 12% increase over
the prior year period.
During the first six months, the Company sold 3,604,400 equity ounces,
8% higher than the prior year period. The increase in ounces sold reflects
the February 15, 2002 acquisition date of Franco-Nevada and Normandy Mining.
The average realized gold price for the first six months was $352, a 16%
increase over the prior year period.
The following transactions impacted net income for the second quarter of
2003:
-- a $11.7 million ($0.03 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 $63.9 million ($0.16 per share) non-cash, after-tax gain on the
extinguishment of Newmont Yandal Operations Pty Ltd (Yandal) bonds;
-- a net $53.6 million ($0.13 per share) non-cash, after-tax gain on the
extinguishment of Yandal derivative liabilities on a consolidated
basis;
-- a $107.8 million ($0.27 per share) non-cash, after-tax equity loss
and impairment of the Company's investment in Australian Magnesium
Corporation (AMC); and
-- other miscellaneous charges totaling $2.5 million ($0.01 per share).
These transactions had the net effect of increasing net income for the
second quarter of 2003 by $18.9 million.
The following transactions impacted net income for the second quarter of
2002:
-- a $47.3 million ($0.12 per share) after-tax gain on the sale of the
Company's interest in Lihir Gold; and
-- a $6.7 million ($0.02 per share) non-cash, after-tax loss for the
change in fair value of gold derivative instruments that do not
qualify as "effective hedges."
These transactions had the net effect of increasing net income for the
second quarter of 2002 by $40.6 million.
The Company generated cash from operating activities of $177.2 million in
the second quarter, before utilizing $88.2 million for settlement of
derivatives related to the Australian hedge books. For the first half of
2003, cash from operating activities totaled $345.9 million, before utilizing
$121.0 million for settlement of derivatives related to those hedge books.
Operating Highlights - Second Quarter
North America Q2 Q2 YTD YTD
2003 2002 2003 2002
Equity gold sales (000 ozs) 637.1 728.2 1,384.5 1,455.6
Total cash costs ($/oz)(1) $251 $231 $238 $231
* At the North American operations, increased total cash costs were due
to higher royalties, higher costs for energy-related consumables and
diesel, and lower gold sales in Nevada and Canada.
* The Nevada operations sold 535,300 ounces in the second quarter, an
11% decrease from the second quarter of 2002. Total cash costs at
$254 per ounce were 5% higher than a year ago, primarily due to higher
labor costs and royalties, lower than planned production from the Deep
Post underground mine due to poor ground conditions, and maintenance
at the Twin Creeks autoclave that was originally planned for the third
quarter. Oxide mill production was lower than a year ago as Mill 5
was idled during the quarter, awaiting ore from the Gold Quarry South
Layback (GQSL) project currently in development. Favorable recovery
trends continue at the roaster.
* Golden Giant in Canada sold 53,800 ounces in the second quarter, a 31%
decrease over the second quarter of 2002. Total cash costs were 49%
higher than a year ago at $248 per ounce due to a combination of a
stronger Canadian dollar and a 26% decline in tons milled due to less
flexible, more labor-intensive mining techniques as the mine matures.
* Holloway in Canada sold 14,600 equity ounces in the second quarter, a
37% decrease over the second quarter of 2002 due to a 24% decline in
ore grades due to stope sequencing. Total cash costs of $310 per
ounce were 42% higher than a year ago. Increased cash costs were
primarily due to the strengthening Canadian dollar, reduced throughput
at Barrick's Holt-McDermott mill and lower sales.
* La Herradura in Mexico sold 17,800 equity ounces in the second
quarter, a 17% increase over the second quarter of 2002 due to the
additional investment in mining equipment. Total cash costs at
$201 per ounce were 12% more than a year ago.
* Mesquite in California sold 15,600 ounces at total cash costs of
$153 per ounce. An agreement to sell the Mesquite operations to
Western Goldfields was entered into on July 3, 2003.
South America Q2 Q2 YTD YTD
2003 2002 2003 2002
Equity gold sales (000 ozs) 392.6 311.8 779.5 620.5
Total cash costs ($/oz)(1) $127 $142 $129 $142
* Yanacocha in Peru had an outstanding quarter. Productivity
improvements achieved through Newmont's Gold Medal Performance program
resulted in record quarterly production.
* Yanacocha sold 343,700 equity ounces in the second quarter, a 40%
increase over the second quarter of 2002. Total cash costs at
$118 per ounce were 16% lower than a year ago as tons placed on the
leach pads increased (+12%) along with the average grade placed on the
leach pads (+19%).
* Kori Kollo in Bolivia sold 48,900 equity ounces in the second quarter,
a 26% decrease from the second quarter of 2002 due to the processing
of lower grade (-25%) refractory ore, lower recoveries and reduced
tonnage placed on the leach pads (-25%) as the mine approaches
closure. Total cash costs at $188 per ounce were 29% higher than a
year ago, driven largely by higher consumable use, mill maintenance
costs and decreased ounces from lower ore grades.
Australia Q2 Q2 YTD YTD
2003 2002 2003 2002
Equity gold sales (000 ozs) 530.6 457.6 938.4 696.3
Total cash costs ($/oz)(1) $242 $196 $239 $186
* The Australian operations continue to experience significant cost
pressures from a combination of a stronger Australian dollar, which
averaged $0.64 during the second quarter, and higher fuel costs.
Significant progress was made during the quarter at Yandal in regard
to the buy-back of third-party gold hedge and bond obligations.
The Company recorded an impairment of its non-core investment in AMC
due to ongoing issues related to the financing and viability of the
Stanwell Magnesium Project. The Company inherited the investment in
AMC, along with related contractual obligations, when it acquired
Normandy Mining in February 2002.
* Kalgoorlie sold 104,200 equity ounces (+22%) at total cash costs of
$272 per ounce (+24%). Higher average ore grades (+30%) and improved
recoveries (+3%) mitigated marginally lower tons milled and increased
mining costs associated with a deeper pit, higher diesel costs and a
stronger Australian dollar.
* Pajingo sold 93,800 ounces (+26%) at total cash costs of $132 per
ounce (+39%). Higher sales were driven by higher mill throughput
(+14%) and improved grades (+23%). Higher cash costs were
attributable to higher mining costs, the reallocation of technical
service and administration costs and a stronger Australian dollar.
* Tanami sold 190,700 ounces (+45%) at total cash costs of $232 per
ounce (+17%). Higher cash costs were attributable to increased
royalties (as a result of higher gold prices) and a stronger
Australian dollar. Effective April 2003, Newmont owns 100% of the
Tanami operations.
* Yandal sold 141,900 ounces (-15%) at total cash costs of $305 per
ounce (+34%). Lower sales were driven by lower head grades (-19%) and
lower recoveries (-4%).
Batu Hijau (Indonesia) Q2 Q2 YTD YTD
2003 2002 2003 2002
Equity copper sales (m lbs.) 91.2 89.3 161.0 156.9
Equity gold sales (000 ozs) 91.9 63.0 146.2 103.3
Net cash costs ($/lb Cu) $0.21 $0.31 $0.25 $0.36
* Batu Hijau in Indonesia had another impressive quarter. Net cash
costs were $0.21 per pound, a 32% reduction from the year ago quarter,
driven by significantly higher gold by-product credits, lower
treatment and refining charges and continuing favorable grade
reconciliations.
* Copper sales for the second quarter were 2% higher than the year ago
quarter as improved copper grades (+7%) more than offset reduced
throughput (-7%) as a result of processing harder ore types. The
realized copper price for the second quarter was $0.77, compared to
$0.75 for the year ago quarter.
* Batu Hijau repaid $130.1 million in Senior Debt principal during the
quarter.
Other Operations Q2 Q2 YTD YTD
2003 2002 2003 2002
Equity gold sales (000 ozs) 166.9 178.6 313.3 304.1
Total cash costs ($/oz)(1) $175 $144 $172 $152
* Zarafshan in Uzbekistan sold 61,600 equity ounces (-14%) at total cash
costs of $150 per ounce (+6%). Decreased sales and higher unit cash
costs were driven by lower grade ore (-17%) placed on the leach pads.
* Ovacik in Turkey sold 51,200 ounces (+64%) due to increased throughput
(+64%), as the mine delivered additional ore from a new pit extension,
and improved recoveries (+3%), despite processing lower ore grades
(-6%). Total cash costs were slightly higher than the year ago
quarter at $123 per ounce.
* Martha in New Zealand sold 27,700 equity ounces (-14%) at total cash
costs of $237 per ounce. Lower sales were driven by lower grade ore
(-33%) processed. Significantly higher total cash costs (+128%) were
driven by higher power costs, increased consumption of grinding media
and other consumables, and a stronger New Zealand dollar (which
increased total cash costs by approximately $47 per ounce).
* Minahasa in Indonesia sold 26,400 equity ounces (-40%). Mining ceased
at Minahasa in October 2001, but processing of stockpiled ore is
expected to continue through the second quarter of 2004. Total cash
costs were $267 per ounce (+38%) due to reduced production as grades
processed declined (-35%).
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 $274.7 million at the end of the second
quarter. During the second quarter, cash was utilized for:
-- the settlement of derivative obligations ($113.3 million in total,
reported in the cash flow statement as $88.2 million in operating
activities and $25.1 million in investing activities);
-- capital expenditures on property, plant and mine development
($134.0 million); and
-- payment of dividends ($16.2 million).
Debt Reduction
The Company's balance sheet continues to strengthen, with the net debt to
total capitalization ratio decreasing to approximately 16% at the end of the
second quarter (from 18% at the end of the first quarter and 20% at the end of
2002), primarily from the Yandal debt restructuring.
Australian Gold Hedge Books
The Company substantially eliminated the Australian gold hedge books
during the quarter. Committed ounces were reduced by 3.5 million ounces
through closeouts or scheduled maturities (0.6 million ounces) and the
acquisition of the majority of the Yandal gold hedge book (2.9 million
ounces).
At the end of the second quarter, the Australian gold hedge books had been
reduced to 195,000 committed ounces and 633,000 uncommitted ounces. The mark-
to-market valuation was negative $19 million, of which $11 million related to
the Yandal hedge book.
Yandal
During the second quarter, the Company offered to purchase the outstanding
Yandal bonds it did not already own (approximately $237.2 million) and
Yandal's gold hedge book obligations (which had a negative mark-to-market
value of approximately $203 million at May 22, 2003) at a discount of 50%.
The tender offers have now expired, with 99.9% of the bondholders and six out
of seven hedge counterparties (representing 94% of the committed ounces in the
Yandal gold hedge book) accepting the Company's offer.
Despite the success of the tender offers, the Yandal Board of Directors
resolved to place Yandal into voluntary administration (a form of insolvency
proceeding in Australia) on July 3, 2003, as they were of the opinion that
Yandal was insolvent, or likely to become insolvent.
In conjunction with the voluntary administration process, Newmont made an
offer to the administrator for Yandal that, if accepted, would bring Yandal
out of voluntary administration and return it to the control of the Yandal
board of directors. The Company expects that this process will be completed
by the end of the third quarter or early in the fourth quarter.
Newmont Capital
The Company continued its program of portfolio optimization. During the
quarter, Newmont Capital:
-- completed the acquisition of the minority interests in two
subsidiaries, Newmont NFM and Otter Gold Mines Limited;
-- negotiated to sell Newmont's non-core Mesquite property in California
to Western Goldfields (as announced by Western Goldfields on July 15,
2003). The transaction is expected to close by the end of the third
quarter; and
-- continued to manage the Company's investment portfolio, which had a
market value at the end of the second quarter of approximately
$300 million, including an investment in Kinross Gold of
approximately $291 million. The Company will continue to monitor the
market value of its investment in Kinross Gold.
Newmont Capital also manages the Company's royalty business. For the
quarter, royalty revenues totaled $10.5 million, compared with $11.2 million
for the year ago quarter. For the six months, royalty revenues totaled
$24.9 million, significantly higher than the $15 million for the first six
months of 2002, due to higher gold, oil and gas prices and the February 15,
2002 acquisition date of Franco-Nevada.
Exploration & Project Development
Exploration
At the end of the second quarter, there were 83 drill rigs in operation
around the world. Exploration highlights during the quarter included
continuing positive results in Nevada and at the Ahafo and Akyem projects in
Ghana.
In Nevada, exploration and development drilling results indicate excellent
reserve addition potential at the GQSL/Dos Equis Layback at Carlin and the
Twin Creeks Sage Layback (north Mega Pit). New mineralization intersected at
the Chukar underground mine, adjacent to the Gold Quarry pit, is being
investigated for underground mining and/or open pit expansion potential.
Drilling in Nevada during the quarter totaled 168,000 feet in 367 holes.
At Ahafo in Ghana, reserve extension drilling is in progress at 10 of 11
reserve pits, with positive drill results across the trend. The Company
continues to enhance the feasibility studies at Akyem and Ahafo, based on
significantly larger reserves than originally contemplated. The Company
anticipates making a development decision on the Ghana projects by year-end
2003, pending finalization of a foreign investment contract with the
government of Ghana.
Project Development
Development of the GQSL and Leeville projects in Nevada is proceeding on
budget and on schedule. GQSL is expected to produce its first gold in the
fourth quarter of 2003 or early in 2004. At Leeville, the sinking of a
ventilation shaft and adjacent production shaft to an ultimate depth of 2,000
feet continues. Leeville is expected to begin gold production in the fourth
quarter of 2005 or early in 2006.
At Twin Creeks, stripping will commence next month at the Section 30
Layback (south Mega Pit). The Section 30 Layback is expected to produce
1.6 million ounces of gold over a six-year mine life at total cash costs of
between $210 and $220 per ounce. Production is expected to begin in 2005.
Capital costs are estimated at $20 million.
Updated 2003 Forecast
The Company has updated its 2003 Forecast (refer to Forecast Table). In
summary, equity gold sales are projected to increase from between 7.1 million
and 7.3 million ounces to between 7.2 million and 7.4 million ounces. Total
cash costs are projected to increase from between $195 and $200 per ounce to
between $198 and $208 per ounce. Significant changes to the previous forecast
include:
-- in Nevada, an expected increase in total cash costs of approximately
$8 per ounce. Forecasted sales remain unchanged at 2.55 million
ounces;
-- at Yanacocha, an expected increase of 85,000 equity ounces sold to
1,385,000 equity ounces, at lower total cash costs of $117 per ounce;
-- in Australia, an expected increase in total cash costs of
approximately $20 per ounce. Forecasted sales remain unchanged at
between 1.85 and 1.9 million ounces; and
-- at Batu Hijau, an expected decrease in net cash costs of $0.02 per
pound to between $0.26 and $0.28 per pound. Forecasted copper sales
remain unchanged at between 340 million and 360 million equity
pounds; forecasted equity gold sales increased from 275,000 ounces to
290,000 ounces.
STATEMENTS OF CONSOLIDATED OPERATIONS
Three Months Ended June 30,
2003 2002
(unaudited, in thousands,
except per share)
Revenues
Sales - gold $724,026 $609,516
Sales - base metals, net 12,735 22,935
Royalties 10,461 11,202
747,222 643,653
Costs and expenses
Costs applicable to sales
Gold 423,700 383,515
Base metals 9,973 8,674
Depreciation, depletion and amortization 139,337 123,602
Exploration and research 30,247 18,788
General and administrative 31,292 27,652
Write-down of long-lived assets 1,794 --
Other 2,454 (1,791)
638,797 560,440
Other income (expense)
Gain on investments, net -- 47,298
Gain (loss) on gold commodity
derivative instruments, net 16,644 (9,478)
Gain on extinguishment of Yandal bonds, net 94,414 --
Gain on extinguishment of Yandal
derivatives liability, net 76,578 --
Dividends, interest income, foreign
currency exchange and other income 32,318 14,843
Interest expense, net of capitalized
interest (22,669) (35,101)
197,285 17,562
Pre-tax income before minority interest,
equity (loss) income and impairment
of affiliates 305,710 100,775
Income tax expense (89,038) (29,821)
Minority interest in income of subsidiaries (35,807) (19,284)
Equity loss and impairment of
Australian Magnesium Corporation (107,758) (688)
Equity income of affiliates 17,740 18,008
Net income 90,847 68,990
Preferred stock dividends -- (1,869)
Net income applicable to common shares $90,847 $67,121
Net income $90,847 $68,990
Other comprehensive income, net of tax 19,130 29,828
Comprehensive income $109,977 $98,818
Net income per common share,
basic and diluted $0.22 $0.17
Basic weighted average common shares
outstanding 405,388 397,532
Cash dividends declared per common share $0.04 $0.03
STATEMENTS OF CONSOLIDATED OPERATIONS
Six Months Ended June 30,
2003 2002
(unaudited, in thousands,
except per share)
Revenues
Sales - gold $1,438,582 $1,091,750
Sales - base metals, net 32,168 32,305
Royalties 24,941 15,002
1,495,691 1,139,057
Costs and expenses
Costs applicable to sales
Gold 822,709 712,050
Base metals 25,335 19,379
Depreciation, depletion and amortization 269,930 225,788
Exploration and research 51,719 30,355
General and administrative 57,702 48,967
Write-down of long-lived assets 1,794 --
Other 24,473 (921)
1,253,662 1,035,618
Other income (expense)
Gain on investments, net 84,337 47,298
Gain (loss) on gold commodity
derivative instruments, net 71,669 (3,147)
Gain on extinguishment of
Yandal bonds, net 94,414 --
Gain on extinguishment of Yandal
derivatives liability, net 76,578 --
Loss on extinguishment of debt (19,530) --
Dividends, interest income,
foreign currency exchange and other income 64,157 15,258
Interest expense, net of capitalized
interest (52,615) (66,238)
319,010 (6,829)
Pre-tax income before minority interest,
equity (loss) income and impairment of
affiliates and cumulative effect of a
change in accounting principle 561,039 96,610
Income tax expense (151,601) (31,009)
Minority interest in income of subsidiaries (73,596) (29,834)
Equity loss and impairment of
Australian Magnesium Corporation (119,485) (688)
Equity income of affiliates 26,278 19,412
Net income before cumulative effect of a
change in accounting principle 242,635 54,491
Cumulative effect of a change in
accounting principle (34,533) 7,701
Net income 208,102 62,192
Preferred stock dividends -- (3,738)
Net income applicable to common shares $208,102 $58,454
Net income $208,102 $62,192
Other comprehensive income, net of tax 60,159 57,706
Comprehensive income $268,261 $119,898
Net income per common share before
cumulative effect of a change in
accounting principle, basic $0.60 $0.15
Cumulative effect of a change in
accounting principle per common share, basic (0.08) 0.02
Net income per common share, basic $0.52 $0.17
Basic weighted average common shares
outstanding 403,648 339,817
Cash dividends declared per common share $0.08 $0.06
CONSOLIDATED BALANCE SHEETS
June 30, December 31,
2003 2002
(unaudited, in thousands)
ASSETS
Cash and cash equivalents $274,741 $401,683
Marketable securities - short-term 12,030 13,188
Accounts receivable 44,971 44,510
Inventories 170,458 169,324
Stockpiles and ore on leach pads 277,021 328,993
Prepaid taxes 19,318 28,335
Deferred stripping costs 28,660 32,085
Deferred income tax assets 53,482 51,451
Newmont Australia infrastructure bonds 114,287 --
Other current assets 63,365 43,687
Current assets 1,058,333 1,113,256
Property, plant and mine development, net 2,343,102 2,287,030
Mineral interests and other
intangible assets, net 1,405,066 1,415,348
Investments 695,059 1,206,705
Marketable securities - long-term 291,004 --
Deferred stripping costs 39,336 23,302
Long-term stockpiles and ore on leach pad 282,537 199,761
Deferred income tax assets 879,324 761,428
Other long-term assets 89,208 123,112
Goodwill 3,068,657 3,024,576
Total assets $10,151,626 $10,154,518
LIABILITIES
Current portion of long-term debt $176,422 $115,322
Accounts payable 151,042 105,277
Deferred income tax liabilities 9,171 28,469
Derivative instruments 7,914 74,999
Employee related benefits - short-term 117,196 100,936
Other current liabilities 420,049 268,460
Current liabilities 881,794 693,463
Long-term debt 1,277,166 1,701,282
Reclamation and remediation liabilities 421,970 288,536
Deferred revenue from sale of future
production 53,841 53,841
Derivative instruments 17,254 388,659
Deferred income tax liabilities 742,237 656,452
Employee related benefits - long-term 214,697 234,103
Other long-term liabilities 379,677 364,376
Total liabilities 3,988,636 4,380,712
Minority interest in subsidiaries 362,196 354,558
STOCKHOLDERS' EQUITY
Total stockholders' equity 5,800,794 5,419,248
Total liabilities and
stockholders' equity $10,151,626 $10,154,518
STATEMENT OF CONSOLIDATED CASH FLOWS
Six Months Ended June 30,
2003 2002
(unaudited, in thousands)
Operating activities:
Net income $208,102 $62,192
Adjustments to reconcile net income to
net cash provided by operating activities:
Depreciation, depletion
and amortization 269,930 225,788
Accretion of accumulated reclamation
obligations 11,320 --
Amortization of deferred
stripping costs, net (14,114) 8,903
Deferred tax benefit 8,745 (10,403)
Foreign currency exchange gain (loss) (34,019) 10,504
Minority interest, net of dividends 44,406 27,134
Equity loss (income) and impairment
of affiliates, net of dividends 99,309 (14,859)
Write-downs of inventories,
stockpiles and ore on leach pad 17,941 15,897
Cumulative effect of a change in
accounting principle, net of tax 34,533 (7,701)
Gain on investments, net (84,337) (47,298)
Gain on gold commodity derivative
instruments, net (71,669) 3,147
Gain on extinguishment of
Yandal bonds, net (94,414) --
Gain on extinguishment of Yandal
derivatives liability, net (76,578) --
Loss on extinguishment of debt 19,530 --
Gain on sale of assets and other (11,027) (9,704)
(Increase) decrease in operating assets:
Accounts receivable 8,000 14,413
Inventories, stockpiles and
ore on leach pad (25,574) (5,441)
Other assets 7,332 14,881
Increase (decrease) in operating
liabilities:
Accounts payable and other
accrued liabilities 54,156 (46,473)
Derivative instruments (12,935) --
Early settlement of derivative
instruments classified as
cash flow hedges (120,993) --
Other liabilities (12,698) (42,896)
Net cash provided by operating activities 224,946 198,084
Investing activities:
Additions to property, plant and
mine development (215,301) (140,810)
Advances to joint ventures and
affiliates, net (46,203) (24,750)
Proceeds from sale of short-term
investments 1,653 406,731
Proceeds from the sale of
TVX Newmont Americas 180,000 --
Proceeds from sale of marketable
securities of Lihir -- 84,002
Proceeds from sale of cross currency swaps -- 50,816
Early settlement of ineffective
derivative instruments (29,148) --
Cash consideration for acquisition
of NFM minority interest and other (11,195) --
Cash received from acquisition of
Normandy and Franco-Nevada,
net of transaction costs -- (87,885)
Proceeds from asset sales and other 988 19,888
Net cash (used) provided by
investing activities (119,206) 307,992
Financing activities:
Proceeds from long-term debt 115,000 489,131
Repayment of long-term debt (322,360) (911,817)
Dividends paid on common
and preferred stock (32,308) (25,871)
Proceeds from stock issuance and other 24,851 62,898
Other -- (691)
Net cash used in financing activities (214,817) (386,350)
Effect of exchange rate changes on cash (17,865) 16,248
Net change in cash and cash equivalents (126,942) 135,974
Cash and cash equivalents at
beginning of period 401,683 149,431
Cash and cash equivalents at
end of period $274,741 $285,405
OPERATING STATISTICS SUMMARY
Three months ended North America South America Australia
June 30, 2003 2002 2003 2002 2003 2002
Production Costs
Per Ounce:
Direct mining
and production
costs $262 $224 $127 $141 $228 $183
Capitalized
mining & other (19) 3 (5) (3) -- 1
Cash operating
costs 243 227 122 138 228 184
Royalties and
production taxes 8 4 5 4 14 12
Total cash costs 251 231 127 142 242 196
Reclamation and
mine closure
costs 4 3 3 -- 1 5
Total costs
applicable
to sales 255 234 130 142 243 201
Non-cash inventory
adjustment -- 1 -- -- -- 3
Depreciation and
amortization 68 50 64 57 52 42
Depreciation and
amortization
adjustment -- (3) -- -- -- 15
Total production
costs $323 $282 $194 $199 $295 $261
Consolidated
gold sales
(000 ozs.) 637.1 728.2 724.7 553.2 530.6 479.7
Equity gold sales
(000 ozs.) 637.1 728.2 392.6 311.8 530.6 457.6
Average realized
price per
equity ounce $347 $312 $346 $312 $348 $318
Other (1) Equity Investments Total
Three months ended and Other (2) (3)
June 30, 2003 2002 2003 2002 2003 2002
Production Costs
Per Ounce:
Direct mining
and production
costs $189 $155 -- -- $213 $190
Capitalized
mining & other (18) (14) -- -- (9) --
Cash operating
costs 171 141 -- -- 204 190
Royalties and
production taxes 4 3 -- -- 8 6
Total cash costs 175 144 -- -- 212 196
Reclamation and
mine closure
costs 2 (1) -- -- 3 2
Total costs
applicable to
sales 177 143 -- -- 215 198
Non-cash inventory
adjustment -- 4 -- -- -- 2
Depreciation and
amortization 66 46 -- -- 62 49
Depreciation and
amortization
adjustment -- 29 -- -- -- 6
Total production
costs $243 $222 -- -- $277 $255
Consolidated
gold sales
(000 ozs.) 168.5 181.3 4.8 9.1 2,065.7 1,951.5
Equity gold sales
(000 ozs.) 166.9 178.6 96.7 187.0 1,823.9 1,863.2
Average realized
price per
equity ounce $349 $313 -- -- $353 $314
Copper Summary(4)
Equity copper
production
(millions of lbs.) 96.7 101.4
Equity copper sales
(millions of lbs.) 107.4 104.3
Net cash cost per
equity pound $0.21 $0.40
Average realized
price per pound $0.77 $0.74
(1) Other includes Ovacik (Turkey), Zarafshan (Uzbekistan), Minahasa
(Indonesia) and Martha (New Zealand).
(2) Equity investments comprise Batu Hijau.
(3) Includes 4,800 and 9,100 ounces from the wholly-owned Golden Grove
zinc/copper mine in 2003 and 2002, respectively.
(4) Represents both Batu Hijau and Golden Grove.
Six months ended North America South America Australia
June 30, 2003 2002 2003 2002 2003 2002
Production Costs
Per Ounce:
Direct mining
and production
costs $247 $223 $128 $142 $226 $172
Capitalized mining
& other (18) 4 (4) (3) -- 4
Cash operating
costs 229 227 124 139 226 176
Royalties and
production taxes 9 4 5 3 13 10
Total cash costs 238 231 129 142 239 186
Reclamation and
mine closure
costs 3 3 3 2 2 5
Total costs
applicable to
sales 241 234 132 144 241 191
Non-cash inventory
adjustment -- 1 -- -- -- 6
Depreciation and
amortization 61 50 59 63 55 48
Depreciation and
amortization
adjustment -- (2) -- -- -- 10
Total production
costs $302 $283 $191 $207 $296 $255
Consolidated
gold sales
(000 ozs.) 1,384.5 1,455.6 1,436.3 1,105.3 955.8 726.7
Equity gold sales
(000 ozs.) 1,384.5 1,455.6 779.5 620.5 938.4 696.3
Average realized
price per
equity ounce $348 $302 $349 $301 $348 $310
Other (1) Equity Investments Total
Six months ended and Other (2) (3)
June 30, 2003 2002 2003 2002 2003 2002
Production Costs
Per Ounce:
Direct mining
and production
costs $176 $157 -- -- $207 $188
Capitalized
mining & other (8) (8) -- -- (8) 2
Cash operating
costs 168 149 -- -- 199 190
Royalties and
production taxes 4 3 -- -- 8 5
Total cash costs 172 152 -- -- 207 195
Reclamation and
mine closure
costs 2 -- -- -- 3 3
Total costs
applicable to
sales 174 152 -- -- 210 198
Non-cash
inventory
adjustment -- 4 -- -- -- 2
Depreciation and
amortization 66 52 -- -- 59 53
Depreciation and
amortization
adjustment -- 17 -- -- -- 3
Total production
costs $240 $225 -- -- $269 $256
Consolidated
gold sales
(000 ozs.) 318.3 309.5 6.8 9.1 4,101.7 3,606.2
Equity gold sales
(000 ozs.) 313.3 304.1 188.7 251.5 3,604.4 3,328.0
Average realized
price per
equity ounce $350 $304 -- -- $352 $304
Copper Summary(4)
Equity copper
production
(millions of lbs.) 196.1 188.6
Equity copper sales
(millions of lbs.) 198.5 182.0
Net cash cost per
equity pound $0.28 $0.45
Average realized
price per pound $0.77 $0.75
(1) Other includes Ovacik (Turkey), Zarafshan (Uzbekistan), Minahasa
(Indonesia) and Martha (New Zealand).
(2) Equity investments comprise Batu Hijau (and TVX Newmont Americas and
Echo Bay Mining Limited through January 31, 2003).
(3) Includes 6,800 and 9,100 ounces from the wholly-owned Golden Grove
zinc/copper mine in 2003 and 2002, respectively.
(4) Represents both Batu Hijau and Golden Grove.
UPDATED 2003 FORECAST
Equity Gold Total
Sales Cash Costs
(000 oz) ($/oz)
North America
Nevada 2,550 $228
Mesquite(1) 40 $160
Golden Giant 230 $235
Holloway 65 $300
La Herradura 70 $175
Sub-total ~2,900-3,000 ~$222-$228
South America
Yanacocha 1,385 $117
Kori Kollo 150 $200
Sub-total ~1,500-1,570 ~ $122-$127
Australia
Kalgoorlie 380 $290
Pajingo 325 $135
Tanami(2) 580 $260
Yandal 595 $275
Sub-total ~1,850-1,900 ~$245-$255
Other
Martha(2) 95 $265
Zarafshan 220 $150
Minahasa 100 $260
Ovacik 160 $130
Sub-total ~560-590 ~$175-185
Equity Investments
Batu Hijau 290 --
TOTAL ~7,200-7,400 ~$198-$208
Notes:
1. Assumes sale to Western Goldfields is completed on August 31, 2003.
2. Effective April 2003, 100% interest.
Equity
Copper & Net
Zinc Sales Cash Costs
(million lbs) ($/lb)
Batu Hijau - Copper ~340-360 ~$0.26-$0.28
Golden Grove - Copper ~65-75 ~$0.63-$0.68
Golden Grove - Zinc ~130-140 ~$0.28-$0.34
Financial Projections (in millions, except tax rate)
Royalty revenue $42 - $46
Depreciation, depletion & amortization $560 - $590
Exploration and research $95 - $100
General and administrative $100 - $105
Interest expense $90 - $95
Tax rate (assuming $350/oz gold) 20% - 30%
Capital expenditures $550 - $570
Sensitivity to Changes in the Gold Price
An annualized $10 change in the gold price changes annual net income by
approximately $58 million, assuming all other factors remain constant.
An annualized $10 change in the gold price changes annual cash generated
by operating activities by approximately $68 million, assuming all other
factors remain constant.
Supplemental Information
1. Gold Production Summary - Americas
Nevada Canada Yanacocha,
Three months ended Peru
June 30, 2003 2002 2003 2002 2003 2002
Tons Mined
(000 dry short
tons):
Open-Pit 42,929 30,860 n/a n/a 53,988 50,617
Underground 436 329 323 384 n/a n/a
Tons Milled/
Processed (000):
Oxide 348 1,332 322 390 n/a n/a
Refractory 2,115 2,091 n/a n/a n/a n/a
Leach 4,537 3,483 n/a n/a 39,971 35,791
Average Ore Grade
(oz/ton):
Oxide 0.191 0.133 0.213 0.250 n/a n/a
Refractory 0.213 0.209 n/a n/a n/a n/a
Leach 0.031 0.036 n/a n/a 0.029 0.024
Average Mill
Recovery Rate:
Oxide 86.1% 77.0% 94.9% 95.5% n/a n/a
Refractory 91.3% 89.9% n/a n/a n/a n/a
Ounces Produced
(000): 536.9 617.7 67.2 97.0 682.1 479.1
Equity Ounces
Produced (000):
Oxide 56.9 131.8 67.2 97.0 n/a n/a
Refractory 388.1 377.2 n/a n/a n/a n/a
Leach 91.9 108.7 n/a n/a 350.3 246.0
Total 536.9 617.7 67.2 97.0 350.3 246.0
Equity Ounces
Sold (000) 535.3 599.0 68.4 101.6 343.7 245.4
Production Costs
Per Ounce:
Direct mining
and production
costs $267 $234 $260 $176 $117 $138
Capitalized
mining & other (21) 4 1 1 (4) (2)
Cash operating
costs 246 238 261 177 113 136
Royalties and
production
taxes 8 5 1 1 5 5
Total cash costs 254 243 262 178 118 141
Reclamation and
mine closure
costs 3 2 8 6 2 (1)
Total costs
applicable
to sales 257 245 270 184 120 140
Non-cash
inventory
adjustment -- 1 -- -- -- --
Depreciation and
amortization 66 46 81 67 69 59
Depreciation and
amortization
adjustment -- (4) -- -- -- --
Total production
costs $323 $288 $351 $251 $189 $199
Kori Kollo,
Three months ended Bolivia Other (1)
June 30, 2003 2002 2003 2002
Tons Mined
(000 dry short
tons):
Open-Pit 2,894 5,250 3,118 3,237
Underground n/a n/a n/a n/a
Tons Milled/
Processed (000):
Oxide n/a n/a n/a n/a
Refractory 1,842 1,942 n/a n/a
Leach 1,242 1,660 1,060 1,037
Average Ore Grade
(oz/ton):
Oxide n/a n/a n/a n/a
Refractory 0.038 0.050 n/a n/a
Leach 0.017 0.017 0.026 0.026
Average Mill
Recovery Rate:
Oxide n/a n/a n/a n/a
Refractory 61.8% 62.6% n/a n/a
Ounces Produced
(000): 55.2 76.3 33.4 27.6
Equity Ounces
Produced (000):
Oxide n/a n/a n/a n/a
Refractory 37.9 53.7 n/a n/a
Leach 10.8 13.4 33.4 27.6
Total 48.7 67.1 33.4 27.6
Equity Ounces
Sold (000) 48.9 66.4 33.4 27.6
Production Costs
Per Ounce:
Direct mining
and production
costs $199 $153 $179 $182
Capitalized
mining & other (11) (7) (5) (12)
Cash operating
costs 188 146 174 170
Royalties and
production
taxes -- -- 5 3
Total cash costs 188 146 179 173
Reclamation and
mine closure
costs 13 4 3 2
Total costs
applicable to
sales 201 150 182 175
Non-cash inventory
adjustment -- -- -- --
Depreciation and
amortization 32 49 74 79
Depreciation and
amortization
adjustment -- -- -- --
Total production
costs $233 $199 $256 $254
(1) Other includes La Herradura and Mesquite
Nevada Canada Yanacocha,
Six months ended Peru
June 30, 2003 2002 2003 2002 2003 2002
Tons Mined
(000 dry short
tons):
Open-Pit 87,789 65,109 n/a n/a 101,448 99,336
Underground 842 621 659 783 n/a n/a
Tons Milled/
Processed (000):
Oxide 759 2,460 668 798 n/a n/a
Refractory 4,510 4,192 n/a n/a n/a n/a
Leach 7,603 7,760 n/a n/a 72,793 66,520
Average Ore Grade
(oz/ton):
Oxide 0.193 0.120 0.235 0.230 n/a n/a
Refractory 0.214 0.211 n/a n/a n/a n/a
Leach 0.030 0.030 n/a n/a 0.028 0.022
Average Mill
Recovery Rate:
Oxide 87.5% 74.2% 95.1% 95.1% n/a n/a
Refractory 90.3% 88.9% n/a n/a n/a n/a
Ounces Produced
(000): 1,163.2 1,225.4 151.7 185.9 1,321.5 950.6
Equity Ounces
Produced (000):
Oxide 130.3 222.3 151.7 185.9 n/a n/a
Refractory 846.2 771.1 n/a n/a n/a n/a
Leach 186.7 232.0 n/a n/a 678.6 488.1
Total 1,163.2 1,225.4 151.7 185.9 678.6 488.1
Equity Ounces
Sold (000) 1,168.2 1,205.1 151.7 191.8 678.8 493.5
Production Costs
Per Ounce:
Direct mining
and production
costs $250 $230 $258 $191 $119 $137
Capitalized
mining & other (21) 6 1 1 (3) (2)
Cash operating
costs 229 236 259 192 116 135
Royalties and
production
taxes 10 4 1 -- 5 4
Total cash costs 239 240 260 192 121 139
Reclamation and
mine closure
costs 2 3 7 6 2 1
Total costs
applicable
to sales 241 243 267 198 123 140
Non-cash
inventory
adjustment -- 1 -- -- -- --
Depreciation and
amortization 58 46 92 69 63 68
Depreciation and
amortization
adjustment -- (3) -- -- -- --
Total production
costs $299 $287 $359 $267 $186 $208
Kori Kollo,
Six months ended Bolivia Other (1)
June 30, 2003 2002 2003 2002
Tons Mined
(000 dry short
tons):
Open-Pit 6,213 9,737 5,876 6,104
Underground n/a n/a n/a n/a
Tons Milled/
Processed (000):
Oxide n/a n/a n/a n/a
Refractory 3,636 3,794 n/a n/a
Leach 2,718 3,095 2,017 1,956
Average Ore Grade
(oz/ton):
Oxide n/a n/a n/a n/a
Refractory 0.037 0.050 n/a n/a
Leach 0.017 0.018 0.026 0.026
Average Mill
Recovery Rate:
Oxide n/a n/a n/a n/a
Refractory 63.1% 60.2% n/a n/a
Ounces Produced
(000): 113.0 146.4 64.6 58.7
Equity Ounces
Produced (000):
Oxide n/a n/a n/a n/a
Refractory 75.2 100.3 n/a n/a
Leach 24.3 28.5 64.6 58.7
Total 99.5 128.8 64.6 58.7
Equity Ounces
Sold (000) 100.7 127.0 64.6 58.7
Production Costs
Per Ounce:
Direct mining
and production
costs $191 $161 $163 $178
Capitalized
mining & other (11) (7) (5) (10)
Cash operating
costs 180 154 158 168
Royalties and
production
taxes -- -- 6 3
Total cash costs 180 154 164 171
Reclamation and
mine closure
costs 10 4 3 2
Total costs
applicable
to sales 190 158 167 173
Non-cash
inventory
adjustment -- -- -- --
Depreciation and
amortization 34 47 66 76
Depreciation and
amortization
adjustment -- -- -- --
Total production
costs $224 $205 $233 $249
(1) Other includes La Herradura and Mesquite
2. Gold Production Summary - Australia
Kalgoorlie Pajingo
Three months ended June 30, 2003 2002 2003 2002
Tons Mined (000 dry short tons) 11,856 11,042 199 157
Tons Milled/Processed 1,807 1,818 201 177
Average Ore Grade (oz/ton) 0.076 0.058 0.464 0.377
Average Mill Recovery Rate 86.0% 83.3% 96.9% 97.0%
Ounces Produced (000) 101.8 80.7 93.8 70.2
Equity Ounces Produced (000) 101.8 80.7 93.8 70.2
Equity Ounces Sold (000) 104.2 85.4 93.8 74.4
Production Costs Per Ounce:
Direct mining and production
costs $240 $213 $124 $84
Capitalized mining & other 22 (2) (4) (2)
Cash operating costs 262 211 120 82
Royalties and production taxes 10 8 12 13
Total cash costs 272 219 132 95
Reclamation and mine closure
costs 3 5 (1) 2
Total costs applicable to sales 275 224 131 97
Non-cash inventory adjustment -- 5 -- 2
Depreciation and amortization 29 21 73 44
Depreciation and amortization
adjustment -- 6 -- 43
Total production costs $304 $256 $204 $186
Tanami Yandal
Three months ended June 30, 2003 2002 2003 2002
Tons Mined (000 dry short tons) 5,622 9,603 874 3,877
Tons Milled/Processed 1,134 1,107 1,259 1,244
Average Ore Grade (oz/ton) 0.165 0.150 0.120 0.147
Average Mill Recovery Rate 96.7% 98.6% 89.1% 92.9%
Ounces Produced (000) 181.0 158.5 137.8 173.4
Equity Ounces Produced (000) 180.9 135.8 137.8 173.4
Equity Ounces Sold (000) 190.7 131.2 141.9 166.6
Production Costs Per Ounce:
Direct mining and production
costs $220 $179 $298 $214
Capitalized mining & other (8) 3 (2) 4
Cash operating costs 212 182 296 218
Royalties and production taxes 20 17 9 9
Total cash costs 232 199 305 227
Reclamation and mine closure
costs 1 5 3 5
Total costs applicable to sales 233 204 308 232
Non-cash inventory adjustment -- 6 -- (1)
Depreciation and amortization 53 22 52 71
Depreciation and amortization
adjustment -- 42 -- (14)
Total production costs $286 $274 $360 $288
Kalgoorlie Pajingo
Six months ended June 30, 2003 2002 2003 2002
Tons Mined (000 dry short tons) 23,051 16,842 372 314
Tons Milled/Processed 3,444 2,736 394 341
Average Ore Grade (oz/ton) 0.071 0.059 0.431 0.390
Average Mill Recovery Rate 85.8% 83.2% 96.8% 97.0%
Ounces Produced (000) 193.6 129.0 167.1 134.2
Equity Ounces Produced (000) 193.6 129.0 167.1 134.2
Equity Ounces Sold (000) 193.2 126.5 167.8 131.4
Production Costs Per Ounce:
Direct mining and production
costs $239 $204 $116 $82
Capitalized mining & other 12 6 (3) (4)
Cash operating costs 251 210 113 78
Royalties and production taxes 10 7 11 10
Total cash costs 261 217 124 88
Reclamation and mine closure
costs 3 6 (1) 2
Total costs applicable to sales 264 223 123 90
Non-cash inventory adjustment -- 17 -- 6
Depreciation and amortization 24 26 74 38
Depreciation and amortization
adjustment -- 2 -- 37
Total production costs $288 $268 $197 $171
Tanami Yandal
Six months ended June 30, 2003 2002 2003 2002
Tons Mined (000 dry short tons) 10,981 12,730 1,729 7,240
Tons Milled/Processed 2,232 1,610 2,616 1,999
Average Ore Grade (oz/ton) 0.148 0.142 0.115 0.145
Average Mill Recovery Rate 96.3% 96.8% 90.6% 92.6%
Ounces Produced (000) 316.4 225.7 282.9 272.0
Equity Ounces Produced (000) 297.2 193.9 282.9 272.0
Equity Ounces Sold (000) 296.2 184.7 281.2 253.7
Production Costs Per Ounce:
Direct mining and production
costs $233 $181 $274 $197
Capitalized mining & other (11) 2 7 7
Cash operating costs 222 183 281 204
Royalties and production taxes 20 15 9 8
Total cash costs 242 198 290 212
Reclamation and mine closure
costs -- 4 4 6
Total costs applicable to sales 242 202 294 218
Non-cash inventory adjustment -- 6 -- 1
Depreciation and amortization 56 26 64 79
Depreciation and amortization
adjustment -- 35 -- (17)
Total production costs $298 $269 $358 $281
3. Gold Production Summary - Other
Zarafshan, Ovacik,
Uzbekistan Turkey
Three months ended June 30, 2003 2002 2003 2002
Tons Mined (000 dry short tons) n/a n/a 1,019 1,283
Tons Milled/Processed:
Leach n/a n/a n/a n/a
Mill 2,040 1,957 157 96
Average Ore Grade (oz/ton) 0.044 0.053 0.355 0.376
Average Mill Recovery Rate n/a n/a 93.7% 90.9%
Ounces Produced (000) 60.6 71.3 50.6 34.3
Equity Ounces Produced (000) 60.6 71.3 50.6 34.3
Equity Ounces Sold (000) 61.6 71.3 51.2 31.2
Production Costs Per Ounce:
Direct mining and production
costs $148 $140 $113 $106
Capitalized mining & other 2 2 (1) 2
Cash operating costs 150 142 112 108
Royalties and production taxes -- -- 11 12
Total cash costs 150 142 123 120
Reclamation and mine closure
costs 2 (4) 1 4
Total costs applicable to sales 152 138 124 124
Non-cash inventory adjustment -- -- -- 8
Depreciation and amortization 47 44 74 (4)
Depreciation and amortization
adjustment -- -- -- 92
Total production costs $199 $182 $198 $220
Martha, Minahasa,
New Zealand Indonesia
Three months ended June 30, 2003 2002 2003 2002
Tons Mined (000 dry short tons) 1,526 1,416 n/a n/a
Tons Milled/Processed:
Leach n/a n/a n/a n/a
Mill 343 334 187 179
Average Ore Grade (oz/ton) 0.073 0.109 0.151 0.232
Average Mill Recovery Rate 91.4% 91.3% 90.8% 90.7%
Ounces Produced (000) 23.0 32.9 25.7 42.6
Equity Ounces Produced (000) 23.1 32.9 24.1 40.0
Equity Ounces Sold (000) 27.7 32.1 26.4 44.0
Production Costs Per Ounce:
Direct mining and production
costs $356 $194 $259 $186
Capitalized mining & other (119) (90) 3 3
Cash operating costs 237 104 262 189
Royalties and production taxes -- -- 5 4
Total cash costs 237 104 267 193
Reclamation and mine closure
costs 2 -- 5 (1)
Total costs applicable to sales 239 104 272 192
Non-cash inventory adjustment -- 13 -- --
Depreciation and amortization 100 67 61 73
Depreciation and amortization
adjustment -- 72 -- --
Total production costs $339 $256 $333 $265
Zarafshan, Ovacik,
Uzbekistan Turkey
Six months ended June 30, 2003 2002 2003 2002
Tons Mined (000 dry short tons) n/a n/a 1,909 1,866
Tons Milled/Processed:
Leach 4,034 3,859 n/a n/a
Mill n/a n/a 284 137
Average Ore Grade (oz/ton) 0.044 0.051 0.334 0.400
Average Mill Recovery Rate n/a n/a 93.5% 91.4%
Ounces Produced (000) 118.5 133.7 88.1 52.4
Equity Ounces Produced (000) 118.5 133.7 88.1 52.4
Equity Ounces Sold (000) 121.7 123.7 86.2 48.0
Production Costs Per Ounce:
Direct mining and production
costs $144 $140 $111 $121
Capitalized mining & other 2 2 2 --
Cash operating costs 146 142 113 121
Royalties and production taxes -- -- 12 11
Total cash costs 146 142 125 132
Reclamation and mine closure
costs 2 (1) -- 4
Total costs applicable to sales 148 141 125 136
Non-cash inventory adjustment -- -- -- 12
Depreciation and amortization 45 43 83 15
Depreciation and amortization
adjustment -- -- -- 57
Total production costs $193 $184 $208 $220
Martha, Minahasa,
New Zealand Indonesia
Six months ended June 30, 2003 2002 2003 2002
Tons Mined (000 dry short tons) 2,290 2,080 n/a n/a
Tons Milled/Processed:
Leach n/a n/a n/a n/a
Mill 636 500 372 345
Average Ore Grade (oz/ton) 0.083 0.102 0.165 0.233
Average Mill Recovery Rate 90.8% 90.9% 90.4% 91.6%
Ounces Produced (000) 48.1 46.8 56.2 82.9
Equity Ounces Produced (000) 46.5 46.8 52.8 77.9
Equity Ounces Sold (000) 47.3 46.6 58.1 85.8
Production Costs Per Ounce:
Direct mining and production
costs $293 $191 $242 $182
Capitalized mining & other (64) (62) 3 3
Cash operating costs 229 129 245 185
Royalties and production taxes -- -- 5 3
Total cash costs 229 129 250 188
Reclamation and mine closure
costs 3 3 4 1
Total costs applicable to sales 232 132 254 189
Non-cash inventory adjustment -- 11 -- --
Depreciation and amortization 100 86 56 68
Depreciation and amortization
adjustment -- 49 -- --
Total production costs $332 $278 $310 $257
4. Base Metal Summary - Batu Hijau and Golden Grove
Three months ended Six months ended
June 30, June 30,
Batu Hijau 2003 2002 2003 2002
Total tons mined (000) 61,711 64,464 113,347 117,627
Total dry tons processed (000) 12,063 12,991 24,651 24,800
Average copper grade 0.71% 0.67% 0.70% 0.65%
Average recovery rate 88.7% 88.7% 88.3% 88.5%
Copper pounds produced (000) 151,706 153,041 304,014 285,730
Equity copper pounds
produced (000) 85,335 86,086 171,008 160,723
Equity copper pounds sold (000) 91,195 89,340 161,044 156,940
Copper price per pound $0.77 $0.75 $0.77 $0.76
Equity ounces of gold sold (000) 91.9 63.0 146.2 103.3
Equity net cash cost per pound $0.21 $0.31 $0.25 $0.36
Equity noncash cost per pound 0.19 0.19 $0.21 0.21
Equity total production cost
per pound $0.40 $0.50 $0.46 $0.57
Three months ended Six months ended
June 30, June 30,
Golden Grove 2003 2002 2003 2002
Total tons mined 370,128 404,149 693,344 565,968
Total dry tons processed 352,540 406,680 698,681 554,012
Average copper grade 4.27% 5.19% 5.00% 5.17%
Average copper recovery rate 91.8% 89.6% 91.3% 90.4%
Copper produced pounds (000) 11,352 15,291 25,099 27,849
Copper sold pounds (000) 16,167 14,941 37,456 25,075
Copper price per pound $0.75 $0.73 $0.80 $0.73
Copper cash cost per pound $0.22 $0.44 $0.39 $0.68
Average zinc grade 11.82% 16.19% 12.21% 12.91%
Average zinc recovery rate 88.4% 80.0% 90.6% 80.5%
Zinc produced pounds (000) 35,071 37,758 74,876 40,888
Zinc sold pounds (000) 28,715 69,382 53,628 69,382
Zinc price per pound $0.34 $0.34 $0.35 $0.34
Zinc cash cost per pound $0.41 $0.11 $0.36 $0.11
Ounces of gold sold (000) 4.8 9.1 6.8 9.1
Ounces of silver sold (000) 551.5 812.6 774.8 853.4
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 ended June 30, 2003
Total
La Golden North
Nevada Mesquite Herradura Giant Holloway America
Costs
applicable
to sales
under GAAP $138.3 $2.4 $3.5 $13.7 $4.7 $162.6
Minority
interest -- -- -- -- -- --
Reclamation/
accretion
expense (1.5) -- -- (0.3) (0.2) (2.0)
Write-down
inventories -- -- -- -- -- --
Other (3.1) -- 0.1 -- -- (3.0)
Total cash
cost for
per ounce
calculations 133.7 2.4 3.6 13.4 4.5 157.6
Reclamation/
accretion
expense
and other 1.5 -- (0.1) 0.3 0.2 1.9
Depreciation,
depletion
and
amortization 34.7 1.6 0.9 4.4 1.1 42.7
Minority
interest
and other -- -- -- -- -- --
Total
production
cost for
per ounce
calculations $169.9 $4.0 $4.4 $18.1 $5.8 $202.2
Equity ounces
sold (000) 535.3 15.6 17.8 53.8 14.6 637.1
Equity total
cash cost
per ounce
sold $254 $153 $201 $248 $310 $251
Equity total
production
cost per
ounce sold $323 $260 $253 $338 $396 $323
Three months ended June 30, 2003
Total
Kori South
Yanacocha Kollo America Pajingo Kalgoorlie Yandal
Costs
applicable
to sales
under GAAP $83.5 $11.2 $94.7 $12.2 $29.7 $45.4
Minority
interest (42.2) (1.3) (43.5) -- -- --
Reclamation/
accretion
expense (0.9) (0.7) (1.6) -- (0.4) (0.4)
Write-down
inventories -- -- -- -- (1.0) (1.7)
Other 0.1 -- 0.1 0.1 0.1 (0.0)
Total cash cost
for per ounce
calculations 40.5 9.2 49.7 12.3 28.4 43.3
Reclamation/
accretion
expense
and other 0.8 0.7 1.5 -- 0.3 0.4
Depreciation,
depletion
and
amortization 40.4 1.7 42.1 6.9 3.0 7.4
Minority
interest
and other (16.9) (0.2) (17.1) -- -- --
Total
production
cost for
per ounce
calculations $64.8 $11.4 $76.2 $19.2 $31.7 $51.1
Equity ounces
sold (000) 343.7 48.9 392.6 93.8 104.2 141.9
Equity total
cash cost
per ounce
sold $118 $188 $127 $132 $272 $305
Equity total
production
cost per
ounce sold $189 $233 $194 $204 $304 $360
Three months ended June 30, 2003
NFM Total Zarafshan,
Tanami Australia Uzbekistan Minahasa Martha Ovacik
Costs
applicable
to sales
under GAAP $46.7 $134.0 $9.4 $7.7 $7.8 $6.4
Minority
interest 0.1 0.1 -- -- -- --
Reclamation/
accretion
expense (0.5) (1.3) (0.1) (0.2) -- --
Write-down
inventories (2.1) (4.8) -- -- (1.2) --
Other 0.4 0.6 (0.1) (0.5) -- (0.1)
Total cash cost
for per ounce
calculations 44.6 128.6 9.2 7.0 6.6 6.3
Reclamation/
accretion
expense and
other 0.1 0.7 0.2 0.2 -- 0.1
Depreciation,
depletion
and
amortization 10.1 27.4 2.9 1.7 2.7 3.8
Minority
interest
and other 0.1 0.1 -- (0.1) -- --
Total
production
cost for
per ounce
calculations $54.9 $156.8 $12.3 $8.8 $9.3 $10.2
Equity ounces
sold (000) 190.7 530.6 61.6 26.4 27.7 51.2
Equity total
cash cost
per ounce
sold $232 $242 $150 $267 $237 $123
Equity total
production
cost per
ounce sold $286 $295 $199 $333 $339 $198
Three months ended June 30, 2003
Total
Other Total Golden Other Non-
International Gold Grove Gold Consolidated
Costs
applicable
to sales
under GAAP $31.3 $422.6 $9.7 $1.3 $433.6
Minority
interest -- (43.4) -- -- (43.4)
Reclamation/
accretion
expense (0.3) (5.2) -- -- (5.2)
Write-down
inventories (1.2) (6.0) (3.5) -- (9.5)
Other (0.7) (3.0) (6.2) (1.3) (10.5)
Total cash cost
for per ounce
calculations 29.1 365.0 -- -- 365.0
Reclamation/
accretion
expense and
other 0.5 4.6 -- -- 4.6
Depreciation,
depletion
and
amortization 11.1 123.3 6.7 9.3 139.3
Minority
interest
and other (0.1) (17.1) (6.7) (9.3) (33.1)
Total
production
cost for
per ounce
calculations $40.6 $475.8 -- -- $475.8
Equity ounces
sold (000) 166.9 1,727.2 n/a n/a 1,727.2
Equity total
cash cost
per ounce
sold $175 $212 n/a n/a $212
Equity total
production
cost per
ounce sold $243 $277 n/a n/a $277
Three months ended June 30, 2002
Total
La Golden North
Nevada Mesquite Herradura Giant Holloway America
Costs
applicable
to sales
under GAAP $155.1 $2.1 $2.8 $13.6 $5.1 $178.7
Minority
interest -- -- -- -- -- --
Reclamation
expense (1.4) -- (0.1) (0.5) (0.2) (2.2)
Write-down
inventories (7.4) -- -- -- -- (7.4)
Non-cash
inventory
adjustment (0.7) -- -- -- -- (0.7)
Other -- -- -- -- -- --
Total cash
cost for
per ounce
calculations 145.6 2.1 2.7 13.1 4.9 168.4
Reclamation
expense and
other 2.1 -- 0.1 0.5 0.2 2.9
Depreciation,
depletion
and
amortization 25.2 1.5 0.7 5.6 1.3 34.3
Minority
interest
and other -- -- -- -- -- --
Total production
cost for
per ounce
calculations $172.9 $3.6 $3.5 $19.2 $6.4 $205.6
Equity ounces
sold (000) 599.0 12.4 15.2 78.5 23.1 728.2
Equity total
cash cost
per ounce
sold $243 $164 $180 $166 $218 $231
Equity total
production
cost per
ounce sold $288 $285 $229 $243 $279 $282
Three months ended June 30, 2002
Total
Kori South
Yanacocha Kollo America Pajingo Kalgoorlie Yandal
Costs
applicable
to sales
under GAAP $69.5 $11.3 $80.8 $7.6 $19.6 $39.0
Minority
interest (34.6) (1.3) (35.9) -- -- --
Reclamation
expense (0.7) (0.3) (1.0) (0.3) (0.5) (1.0)
Write-down
inventories -- -- -- -- -- (0.1)
Non-cash
inventory
adjustment -- -- -- (0.2) (0.4) 0.2
Other 0.3 -- 0.3 (0.1) -- (0.3)
Total cash cost
for per ounce
calculations 34.5 9.7 44.2 7.0 18.7 37.8
Reclamation
expense
and other (0.2) 0.3 0.1 0.4 0.9 0.7
Depreciation,
depletion
and
amortization 26.2 3.8 30.0 6.4 2.2 9.6
Minority
interest
and other (11.7) (0.5) (12.2) -- -- --
Total
production
cost for
per ounce
calculations $48.8 $13.3 $62.1 $13.8 $21.8 $48.1
Equity ounces
sold (000) 245.4 66.4 311.8 74.4 85.4 166.6
Equity total
cash cost
per ounce
sold $141 $146 $142 $95 $219 $227
Equity total
production
cost per
ounce sold $199 $199 $199 $186 $256 $288
Three months ended June 30, 2002
NFM Total Zarafshan,
Tanami Australia Uzbekistan Minahasa Martha Ovacik
Costs
applicable
to sales
under GAAP $32.3 $98.5 $9.9 $9.0 $3.9 $4.2
Minority
interest (4.7) (4.7) -- -- -- --
Reclamation
expense (0.8) (2.6) -- (0.3) -- (0.1)
Write-down
inventories -- (0.1) -- -- -- --
Non-cash
inventory
adjustment (0.8) (1.2) -- -- (0.4) (0.3)
Other -- (0.4) 0.3 (0.3) (0.1) (0.1)
Total cash cost
for per ounce
calculations 26.0 89.5 10.2 8.4 3.4 3.7
Reclamation
expense and
other 1.3 3.3 (0.3) -- 0.4 0.4
Depreciation,
depletion
and
amortization 9.9 28.1 3.1 3.3 4.5 2.8
Minority
interest
and other (1.3) (1.3) -- (0.2) -- --
Total production
cost for
per ounce
calculations $35.9 $119.6 $13.0 $11.5 $8.3 $6.9
Equity ounces
sold (000) 131.2 457.6 71.3 44.0 32.1 31.2
Equity total
cash cost
per ounce
sold $199 $196 $142 $193 $104 $120
Equity total
production
cost per
ounce sold $274 $261 $182 $265 $256 $220
Three months ended June 30, 2002
Total
Other Total Golden Other Non-
International Gold Grove Kasese Gold Consolidated
Costs
applicable
to sales
under GAAP $27.0 $385.0 $4.5 $4.1 ($1.5) $392.1
Minority
interest -- (40.6) -- -- -- (40.6)
Reclamation
expense (0.4) (6.2) -- -- -- (6.2)
Write-down
inventories -- (7.5) (0.1) -- -- (7.6)
Non-cash
inventory
adjustment (0.7) (2.6) -- -- -- (2.6)
Other (0.2) (0.3) (4.4) (4.1) 1.5 (7.3)
Total cash cost
for per ounce
calculations 25.7 327.8 -- -- -- 327.8
Reclamation
expense
and other 0.5 6.8 -- -- -- 6.8
Depreciation,
depletion
and
amortization 13.7 106.1 6.7 -- 10.8 123.6
Minority
interest
and other (0.2) (13.7) (6.7) -- (10.8) (31.2)
Total production
cost for
per ounce
calculations $39.7 $427.0 -- -- -- $427.0
Equity ounces
sold (000) 178.6 1,676.2 n/a n/a n/a 1,676.2
Equity total
cash cost
per ounce
sold $144 $196 n/a n/a n/a $196
Equity total
production
cost per
ounce sold $222 $255 n/a n/a n/a $255
Six months ended June 30, 2003
Total
La Golden North
Nevada Mesquite Herradura Giant Holloway America
Costs
applicable
to sales
under GAAP $283.8 $5.0 $5.7 $30.4 $10.1 $335.0
Minority
interest -- -- -- -- -- --
Reclamation/
accretion
expense (3.1) (0.1) -- (0.8) (0.3) (4.3)
Write-down
inventories (1.0) -- -- -- -- (1.0)
Other (3.1) -- -- -- -- (3.1)
Total cash cost
for per ounce
calculations 276.6 4.9 5.7 29.6 9.8 326.6
Reclamation/
accretion
expense
and other 3.1 0.1 -- 0.8 0.3 4.3
Depreciation,
depletion
and
amortization 66.3 2.5 1.7 11.6 2.4 84.5
Minority
interest
and other -- -- -- -- -- --
Total
production
cost for
per ounce
calculations $346.0 $7.5 $7.4 $42.0 $12.5 $415.4
Equity
ounces sold
(000) 1,168.2 30.2 34.4 119.0 32.7 1,384.5
Equity total
cash cost
per ounce
sold $239 $163 $166 $249 $301 $238
Equity total
production
cost per
ounce sold $299 $250 $218 $353 $382 $302
Six months ended June 30, 2003
Total
Kori South
Yanacocha Kollo America Pajingo Kalgoorlie Yandal
Costs
applicable
to sales
under GAAP $169.0 $21.8 $190.8 $20.6 $52.1 $85.1
Minority
interest (85.4) (2.6) (88.0) -- -- --
Reclamation/
accretion
expense (1.7) (1.1) (2.8) (0.1) (0.8) (1.1)
Write-down
inventories -- -- -- -- (1.0) (2.4)
Other 0.2 -- 0.2 0.2 0.1 --
Total cash cost
for per ounce
calculations 82.1 18.1 100.2 20.7 50.4 81.6
Reclamation/
accretion
expense
and other 1.5 1.1 2.6 (0.1) 0.7 1.1
Depreciation,
depletion
and
amortization 75.9 3.9 79.8 12.5 4.6 18.0
Minority
interest
and other (33.1) (0.5) (33.6) -- -- --
Total production
cost for
per ounce
calculations $126.4 $22.6 $149.0 $33.1 $55.7 $100.7
Equity ounces
sold (000) 678.8 100.7 779.5 167.8 193.2 281.2
Equity total
cash cost
per ounce
sold $121 $180 $129 $124 $261 $290
Equity total
production
cost per
ounce sold $186 $224 $191 $197 $288 $358
Six months ended June 30, 2003
NFM Total Zarafshan,
Tanami Australia Uzbekistan Minahasa Martha Ovacik
Costs
applicable
to sales
under GAAP $78.3 $236.1 $18.0 $17.1 $13.9 $10.8
Minority
interest (4.3) (4.3) -- -- (0.4) --
Reclamation/
accretion
expense (0.4) (2.4) (0.2) (0.3) (0.1) (0.1)
Write-down
inventories (2.1) (5.5) -- (1.3) (2.6) --
Other 0.2 0.5 -- (1.0) 0.1 --
Total cash cost
for per ounce
calculations 71.7 224.4 17.8 14.5 10.9 10.7
Reclamation/
accretion
expense
and other 0.2 1.9 0.2 0.3 -- 0.1
Depreciation,
depletion
and
amortization 17.7 52.8 5.5 3.4 4.7 7.2
Minority
interest
and other (1.0) (1.0) -- (0.2) -- --
Total production
cost for
per ounce
calculations $88.6 $278.1 $23.5 $18.0 $15.6 $18.0
Equity ounces
sold (000) 296.2 938.4 121.7 58.1 47.3 86.2
Equity total
cash cost
per ounce
sold $242 $239 $146 $250 $229 $125
Equity total
production
cost per ounce
sold $298 $296 $193 $310 $332 $208
Six months ended June 30, 2003
Total
Other Total Golden Other Non-
International Gold Grove Gold Consolidated
Costs
applicable
to sales
under GAAP $59.8 $821.7 $24.9 $1.4 $848.0
Minority
interest (0.4) (92.7) -- -- (92.7)
Reclamation/
accretion
expense (0.7) (10.2) -- -- (10.2)
Write-down
inventories (3.9) (10.4) (6.8) -- (17.2)
Other (0.9) (3.3) (18.1) (1.4) (22.8)
Total cash cost
for per ounce
calculations 53.9 705.1 -- -- 705.1
Reclamation/
accretion
expense
and other 0.6 9.4 -- -- 9.4
Depreciation,
depletion
and
amortization 20.8 237.9 13.8 18.2 269.9
Minority
interest
and other (0.2) (34.8) (13.8) (18.2) (66.8)
Total production
cost for
per ounce
calculations $75.1 $917.6 -- -- $917.6
Equity ounces
sold (000) 313.3 3,415.7 n/a n/a 3,415.7
Equity total
cash cost
per ounce
sold $172 $207 n/a n/a $207
Equity total
production
cost per
ounce sold $240 $269 n/a n/a $269
Six months ended June 30, 2002
Total
La Golden North
Nevada Mesquite Herradura Giant Holloway America
Costs
applicable
to sales
under GAAP $309.5 $4.5 $5.7 $27.3 $10.7 $357.7
Minority
interest -- -- -- -- -- --
Reclamation
expense (2.9) -- (0.1) (0.8) (0.3) (4.1)
Write-down
inventories (15.3) -- -- -- -- (15.3)
Non-cash
inventory
adjustment (1.5) -- -- -- -- (1.5)
Other -- -- -- -- -- --
Total cash cost
for per ounce
calculations 289.8 4.5 5.6 26.5 10.4 336.8
Reclamation
expense
and other 4.4 -- 0.1 0.8 0.3 5.6
Depreciation,
depletion
and
amortization 52.0 3.0 1.5 10.1 3.1 69.7
Minority
interest
and other -- -- -- -- -- --
Total
production
cost for
per ounce
calculations $346.2 $7.5 $7.2 $37.4 $13.8 $412.1
Equity ounces
sold (000) 1,205.1 27.9 30.8 140.8 51.0 1,455.6
Equity total
cash cost
per ounce
sold $240 $160 $181 $188 $205 $231
Equity total
production
cost per
ounce sold $287 $266 $233 $265 $272 $283
Six months ended June 30, 2002
Total
Kori South
Yanacocha Kollo America Pajingo Kalgoorlie Yandal
Costs
applicable
to sales
under GAAP $138.7 $22.8 $161.5 $12.8 $30.4 $56.2
Minority
interest (69.6) (2.7) (72.3) -- -- --
Reclamation
expense (1.5) (0.5) (2.0) (0.5) (0.7) (1.5)
Write-down
inventories -- -- -- -- -- (0.3)
Non-cash
inventory
adjustment -- -- -- (0.8) (2.1) (0.3)
Other 0.9 -- 0.9 (0.1) -- (0.3)
Total cash cost
for per ounce
calculations 68.5 19.6 88.1 11.4 27.6 53.8
Reclamation
expense
and other 0.6 0.5 1.1 1.2 2.8 1.7
Depreciation,
depletion
and
amortization 61.2 6.9 68.1 9.9 3.4 15.8
Minority
interest
and other (27.9) (0.9) (28.8) -- -- --
Total
production
cost for
per ounce
calculations $102.4 $26.1 $128.5 $22.5 $33.8 $71.3
Equity ounces
sold (000) 493.5 127.0 620.5 131.4 126.5 253.7
Equity total
cash cost
per ounce
sold $139 $154 $142 $88 $217 $212
Equity total
production
cost per
ounce sold $208 $205 $207 $171 $268 $281
Six months ended June 30, 2002
NFM Total Zarafshan,
Tanami Australia Uzbekistan Minahasa Martha Ovacik
Costs
applicable
to sales
under GAAP $45.1 $144.5 $17.4 $17.3 $6.8 $7.2
Minority
interest (6.4) (6.4) -- -- -- --
Reclamation
expense (1.0) (3.7) (0.1) (0.6) (0.2) (0.2)
Write-down
inventories -- (0.3) -- -- -- --
Non-cash
inventory
adjustment (1.1) (4.3) -- -- (0.5) (0.6)
Other -- (0.4) 0.3 (0.5) (0.1) (0.1)
Total cash cost
for per ounce
calculations 36.6 129.4 17.6 16.2 6.0 6.3
Reclamation
expense
and other 1.8 7.5 (0.2) -- 0.7 0.8
Depreciation,
depletion
and
amortization 13.0 42.1 5.4 6.2 6.3 3.5
Minority
interest
and other (1.8) (1.8) -- (0.4) -- --
Total production
cost for
per ounce
calculations $49.6 $177.2 $22.8 $22.0 $13.0 $10.6
Equity ounces
sold (000) 184.7 696.3 123.7 85.8 46.6 48.0
Equity total
cash cost
per ounce
sold $198 $186 $142 $188 $129 $132
Equity total
production
cost per
ounce sold $269 $255 $184 $257 $278 $220
Six months ended June 30, 2002
Total
Other Total Golden Other Non-
International Gold Grove Kasese Gold Consolidated
Costs
applicable
to sales
under GAAP $48.7 $712.4 $13.1 $6.1 ($0.2) $731.4
Minority
interest -- (78.7) -- -- -- (78.7)
Reclamation
expense (1.1) (10.9) -- -- -- (10.9)
Write-down
inventories -- (15.6) (0.3) -- -- (15.9)
Non-cash
inventory
adjustment (1.1) (6.9) -- -- -- (6.9)
Other (0.4) 0.1 (12.8) (6.1) 0.2 (18.6)
Total cash cost
for per ounce
calculations 46.1 600.4 -- -- -- 600.4
Reclamation
expense
and other 1.3 15.5 -- -- -- 15.5
Depreciation,
depletion
and
amortization 21.4 201.3 7.0 -- 17.5 225.8
Minority
interest
and other (0.4) (31.0) (7.0) -- (17.5) (55.5)
Total production
cost for
per ounce
calculations $68.4 $786.2 -- -- -- $786.2
Equity ounces
sold (000) 304.1 3,076.5 n/a n/a n/a 3,076.5
Equity total
cash cost
per ounce
sold $152 $195 n/a n/a n/a $195
Equity total
production
cost per
ounce sold $225 $256 n/a n/a n/a $256
6. Reconciliation of Batu Hijau Costs Applicable to Sales to Equity Net
Cash Costs Per Pound
Three months ended Six months ended
June 30, June 30,
2003 2002 2003 2002
Costs applicable to
sales under GAAP 14,659 28,851 $35,776 $61,347
Smelting and refining 23,553 24,295 43,799 45,587
Minority interest (17,833) (24,312) (36,669) (49,010)
Reclamation (1,236) (1,061) (2,334) (1,908)
Total cash cost for
per pound calculation 19,143 27,773 40,572 56,016
Reclamation 1,236 1,061 2,334 1,908
Depreciation, depletion
and amortization 16,359 16,173 30,493 30,953
Total production cost
for per pound calculation 36,738 45,007 $73,399 $88,877
Equity copper pounds
sold (000) 91,195 89,340 161,044 156,940
Equity net cash
cost per pound $0.21 $0.31 $0.25 $0.36
Equity total production
cost per pound $0.40 $0.50 $0.46 $0.57
7. Reconciliation of Golden Grove Costs Applicable to Sales to
Total Copper and Zinc Cash Costs Per Pound
Three months ended June 30,
2003 2002
Total Copper Zinc Total Copper Zinc
Costs applicable
to sales
under GAAP $9,689 $2,439 $7,250 $4,371 $4,921 ($347)
Write-down of
inventories (3,542) (1,552) (1,990) (54) (50) (4)
Smelting and
refining 9,107 2,605 6,502 9,463 1,680 7,783
Total cash cost
for per pound
calculation $15,254 $3,492 $11,762 $13,780 $6,551 $7,432
Total pounds
sold (000) n/a 16,167 28,715 n/a 14,940 69,382
Cash cost per
pound sold n/a $0.22 $0.41 n/a $0.44 $0.11
Six months ended June 30,
2003 2002
Total Copper Zinc Total Copper Zinc
Costs applicable
to sales
under GAAP $24,754 $11,443 $13,311 $13,118 $13,465 ($347)
Write-down of
inventories (6,779) (2,909) (3,870) (257) (253) (4)
Smelting and
refining 16,335 6,245 10,090 11,538 3,755 7,783
Total cash cost
for per pound
calculation $34,310 $14,779 $19,531 $24,399 $16,967 $7,432
Total pounds
sold (000) n/a 37,456 53,628 n/a 25,075 69,382
Cash cost per
pound sold n/a $0.39 $0.36 n/a $0.68 $0.11
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 Capped
Option Sales Put Options Combination Contracts
Contracts Contracts & Other Put Options
Instruments (2)
Years Ozs Price Ozs Price Ozs Price Ozs Price Ozs Price
(3) (3) (3) (3) (3)
2003 105 $292 -- -- -- -- -- -- -- --
2004 203 $292 -- -- -- -- -- -- -- --
2005 205 $292 -- -- 33 $361 -- -- 500 $350
2006 100 $338 -- -- 65 $361 -- -- -- --
2007 20 $397 -- -- 65 $361 -- -- -- --
2008 -- -- -- -- 32 $361 -- -- 1,000 $384
2009 -- -- -- -- -- -- -- -- 600 $381
2010 -- -- -- -- -- -- -- -- -- --
2011 -- -- -- -- -- -- -- -- 250 $392
Total/
Average
(1) 633 $303 -- -- 195 $361 -- -- 2,350 $377
The mark-to-market value of the Australian gold hedge books was negative
$19 million at June 30, 2003. The breakdown of this is as follows:
* Newmont Yandal Operations negative $11 million; and
* Other negative $8 million
The following table shows the approximate sensitivities of the
US$ mark-to-market value of the Australian gold hedge books to certain market
variables as of June 30, 2003 (actual changes in the timing and amount of the
following variables may differ from the assumed changes below):
Change in
Mark-to-Market Value
Market Variables Change in Variable (millions)
A$ Interest Rates +/-1.0% -/+ $1.3
US$/A$ Exchange Rates +/- US$0.01 +/-$6.0
Gold Lease Rates +/-1.0% +/-$2.0
US$ Interest Rates +/-1.0% -/+$0.1
US$ Gold Price/oz. +/-$1.00 -/+$1.5
Notes:
1. For more detailed descriptions, definitions and explanations, refer
to the Company's Quarterly Report on Form 10-Q for the quarter ended
June 30, 2003.
2. "Convertible Put Options and Other Instruments" is comprised of
indexed forward contracts.
3. 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
Company Website
www.newmont.com
Stock Exchange Listings - Ticker
New York Stock Exchange NEM
Toronto Stock Exchange NMC
Australian Stock Exchange NEM
NYSE Share Price Performance (Q2)
Apr 03 May 03 Jun 03 Q2 2003
High $27.74 $30.00 $33.89 $33.89
Low $25.15 $27.60 $30.15 $25.15
Last $27.02 $29.66 $32.46 $32.46
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,
LLC85 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 second quarter earnings conference call and web cast
presentation is scheduled for Thursday, July 31, 2003 beginning at 1:00 p.m.
Eastern Time (11:00 a.m. Mountain Time).
To participate:
Dial-In Number: (630) 395-0078
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 and other capital expenditures and
tax rates; (vii) estimates of reserves, and statements regarding future
exploration results and the replacement of reserves; (viii) statements
regarding modifications to the Company's hedge position; (ix) statements
regarding anticipated timing results of the voluntary administration process
for Yandal; and (x) statements regarding future royalty revenues. 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.
SOURCE Newmont Mining Corporation
-0- 07/31/2003 AA LATH064
/PRNewswire --July 31/
/END FIRST AND FINAL ADD/
/Web site: http://www.melloninvestor.com /
/Web site: http://www.newmont.com /
(NEM NMC.)
CO: Newmont Mining Corporation
ST: Colorado, Ontario
IN: MNG
SU: ERN CCA
CM
- -- LATH064A --
5507 07/31/2003 07:12 EDT
DEFERRED FOR 08:00 07/31