Exhibit 99.1
Newmont Expects 2004 Reserve Growth of 33% in Ghana;
Provides Exploration Update and Revised Gold Sales Guidance
DENVER, Sept. 28 /PRNewswire-FirstCall/ -- Newmont Mining Corporation
(NYSE: NEM) today announced that equity gold reserves in Ghana are expected to
increase by approximately 33%, or four million ounces, from 11.9 million
ounces at year-end 2003 to approximately 16 million ounces at year-end 2004.
The continued exploration success at the Ahafo and Akyem projects in Ghana are
contributing to Newmont's expectations for companywide reserve growth from the
drill bit in 2004.
At Newmont's wholly owned Ahafo project, the Company estimates year-end
2004 reserves will increase by approximately 1.5 million ounces from
7.6 million ounces to in excess of 9 million ounces. The Ahafo project is
expected to be completed and in production by the second half of 2006.
Newmont expects initial capital expenditures of $400 million to $425 million.
During the first five years of operation, annual gold production is expected
to average approximately 500,000 to 550,000 ounces at total cash costs of
approximately $200 per ounce. Engineering studies continue to focus on
maximizing returns and optimizing mine life, including the evaluation of a
second milling facility. At the 85% owned Akyem project, the Company
estimates equity reserve additions of approximately 2.5 million ounces from
year-end 2003 equity reserves of 4.3 million ounces to almost 7 million equity
ounces. A development decision on the Akyem project is anticipated by the end
of 2004.
Wayne W. Murdy, Chairman and Chief Executive Officer, commented,
"Continuing exploration success in Ghana will provide the foundation for our
next core operating district. Ahafo and Akyem are among the next generation
of higher margin properties that drive our outlook for equity gold sales of
over 7 million ounces for 2007 and beyond." Newmont also updated its equity
gold sales forecasts for 2005 and 2006 to approximately 6.75 million to
7 million ounces per year, down slightly due to mine plan revisions, including
additional stripping at Gold Quarry, reflecting increasing reserves, and a
delayed start up at Boddington. "We remain committed to optimizing our
production profile and maintaining our focus on capital discipline to maximize
returns for our investors," said Mr. Murdy.
Cautionary Statement
This news release contains "forward-looking statements" within the meaning
of Section 27A of the Securities Act of 1933, as amended, and Section 21E of
the Securities Exchange Act of 1934, as amended, that are intended to be
covered by the safe harbor created by such sections. Such forward-looking
statements include, without limitation, (i) estimates of future gold
production and sales; (ii) estimates of future cash costs; (iii) estimates of
future capital expenditures; (iv) estimates of reserves, and statements
regarding future exploration results and the replacement of reserves; and (v)
statements regarding future production or permitting activities. Where
Newmont 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, 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 2003 Annual Report on Form 10-K, which is on file with the
Securities and Exchange Commission, as well as the company's other SEC
filings. Newmont does not undertake any obligation to release publicly
revisions to any "forward-looking statement," to reflect events or
circumstances after the date of this news release, or to reflect the
occurrence of unanticipated events, except as may be required under applicable
securities laws
SOURCE Newmont Mining Corporation
-0- 09/28/2004
/CONTACT: Investors, Randy Engel, +1-303-837-6033,
randy.engel@newmont.com, or Wendy Yang, +1-303-837-6141,
wendy.yang@newmont.com, or Media, Doug Hock, +1-303-837-5812,
doug.hock@newmont.com, all of Newmont Mining Corporation/
(NEM)
CO: Newmont Mining Corporation
ST: Colorado
IN: MNG
SU: ERP