News Release
Q4 AND 2002 Results
NEWMONT
The Gold Company
Full Year Net Income of $154 million, $0.42 per share;
Fourth Quarter Net Income Triples
DENVER, March 28, 2003 - Newmont Mining Corporation (NYSE: NEM) today announced
2002 net income applicable to common shares of $154.3 million ($0.42 per share),
compared to a net loss of $54.1 million ($0.28 per share) in 2001. For the
fourth quarter of 2002, Newmont earned $75.1 million ($0.19 per share), compared
to net income of $18.4 million ($0.10 per share) for the fourth quarter of 2001.
Performance highlights for 2002 included:
o Equity gold sales of 7.6 million ounces at total cash costs of $189 per
ounce (1);
o Net cash provided by operating activities of $670.3 million;
o Net debt to total capitalization ratio reduced by more than half to 20%;
and
o Excellent exploration results, replacing depletion of more than nine
million ounces, resulting in year-end proven and probable gold reserves of
86.9 million equity ounces.
Wayne W. Murdy, Chairman and Chief Executive Officer of Newmont, said: "With
higher realized gold prices, we generated strong earnings growth with net income
of $154 million and operating cash flow of $670 million. With continued strength
in the gold market, 2003 should be another exciting year for the company with
strong bottom-line earnings growth."
Twelve Months Fourth Quarter
2002 2001 2002 2001
Financial (in millions, except per share)
Sales and other income $2,745.0 $1,674.1 $815.1 $454.7
Net cash provided by operating activities $670.3 $369.7 $225.2 $146.7
Net income (loss) applicable to common shares $154.3 ($54.1) $75.1 $18.4
Net income (loss) per common share, basic $0.42 ($0.28) $0.19 $0.10
Operating
Equity gold sales (000 ozs) 7,632 5,466 2,216 1,413
Average realized price ($/oz) $313 $271 $328 $279
Total cash costs ($/oz)1 $189 $184 $178 $182
1. For a reconciliation of total cash costs per ounce (a non-GAAP measure of
performance) to costs applicable to sales calculated and presented under
GAAP, please refer to the Supplemental Information attached.
Q4 AND 2002 RESULTS (MARCH 28, 2003) Page 1 of 25
NEWMONT
2002 and Fourth Quarter Results
Net income applicable to common shares was $154.3 million ($0.42 per share) for
2002, a substantial improvement over a net loss of $54.1 million ($0.28 per
share) in 2001. Net income for 2002 before the cumulative effect of a change in
accounting principle was $146.6 million ($0.39 per share).
The company's improved performance in 2002 was the result of higher gold sales,
a $42 per ounce higher realized gold price, a 128% increase in equity income of
affiliates (primarily from Batu Hijau) to $51.4 million, and pre-tax royalty
revenue of $35.7 million, offsetting higher costs and expenses. The results of
the acquired Normandy and Franco-Nevada operations have been included in
Newmont's results of operations from February 16, 2002 forward.
The company generated strong operating cash flow of $670.3 million and $225.2
million for the year and quarter, respectively. Operating cash flows and the
proceeds from non-core asset sales enabled the company to fund $300 million in
capital expenditures and to reduce net borrowings by $547 million.
For 2002, total cash costs were $189 an ounce, an increase of 3% from 2001.
Higher cash costs were primarily driven by lower ore grades at some operations,
an appreciating Australian dollar and higher fuel prices.
Operating income totaled $256.1 million for 2002 versus an operating loss of
$64.8 million for 2001. Operating income was impacted by higher than planned
exploration and general and administrative costs, partially related to
integration costs, as well as a $48.1 million write-down of assets. Of the asset
write-downs, $36.2 million was related to the reduction of inventories to the
lower of average cost or net realizable value as a result of a change in
accounting policy to include depreciation in inventory.
For 2002, the company incurred a non-cash loss on derivative instruments,
primarily attributable to the acquired Normandy gold hedge books, of $39.8
million ($0.11 per share) before tax.
For the fourth quarter of 2002, the company earned net income applicable to
common shares of $75.1 million ($0.19 per share), up 308% from the comparable
quarter of 2001. A 57% increase in equity gold ounces sold at a higher realized
price of $328 an ounce and $12.8 million in royalty revenue resulted in a 79%
increase in sales and other income versus the year ago quarter. Operating income
was $99.4 million in the fourth quarter, compared to an operating loss of $15.3
million in the fourth quarter of 2001.
During the quarter, the company incurred a non-cash loss on derivative
instruments, primarily attributable to the acquired Normandy gold hedge books,
of $25.4 million ($0.06 per share) before tax. Further, the company recorded a
tax benefit of $21.9 million during the quarter as it recognized additional
depletion benefits and resolved tax issues associated with prior years.
Operating Highlights
North America 2002 Q4 2002 Q4 2001
Equity gold sales (000 ozs) 3,224 932 855
Total cash costs ($/oz) (1) $220 $199 $213
o For the year, the Nevada operations sold 2.7 million ounces at a total cash
cost of $225 an ounce, both marginally higher compared to 2001.
o During the quarter, the Nevada operations sold 796,000 equity ounces, an
11% increase over the fourth quarter of 2001. Production from refractory
ores increased to 568,000 ounces (+27%) due to a combination of
higher-grade ore milled and improved recovery. Total cash costs declined 9%
from a year ago.
South America 2002 Q4 2002 Q4 2001
Equity gold sales (000 ozs) 1,426 411 337
Total cash costs ($/oz) (1) $131 $119 $121
o For the year, Yanacocha sold 1.18 million equity ounces at a total cash
cost of $125 an ounce. Higher costs over 2001 were mainly attributable to
lower grade ore. Gold sold increased by 20% as lower grades were more than
offset by increased tons placed on the leach pads.
o Yanacocha sold 354,000 equity ounces during the quarter, a 34% increase
over the fourth quarter of
Q4 AND 2002 RESULTS (MARCH 28, 2003) Page 2 of 25
NEWMONT
2001. Total cash costs for the quarter were 3% lower at $112 an ounce.
Australia 2002 Q4 2002 Q4 2001
Equity gold sales (000 ozs) 1,685 513 35
Total cash costs ($/oz) (1) $191 $190 $96
o The Australian operations were part of the Normandy acquisition on February
15, 2002, reflecting 10.5 months of results for 2002, except for Pajingo,
which had been 50% owned by Newmont and became wholly owned with the
Normandy acquisition. This 10.5-month time frame is referred to as the
"relevant period."
o Pajingo was the outstanding performer in 2002, selling 296,000 equity
ounces at a total cash cost of $95 an ounce. Pajingo is the company's
lowest cost gold producer.
o Tanami sold 452,000 equity ounces at a total cash cost of $205 an ounce in
the relevant period. Higher cash costs were due to increased royalty
payments, higher processing costs due to harder than expected ores at
Groundrush and higher than expected mining costs at Callie.
o Yandal sold 611,000 ounces at a total cash cost of $215 an ounce in the
relevant period. Overall, higher than expected sales were offset by higher
than forecast total cash costs, partially attributable to Bronzewing due to
the one-off transition cost of the change from contractor to owner-mining
during 2002.
o Kalgoorlie sold 325,000 equity ounces at a total cash cost of $215 an ounce
in the relevant period. A joint venture committee is evaluating
alternatives to improve operating efficiencies and recommendations are
expected by June 2003.
Batu Hijau (Indonesia) 2002 Q4 2002 Q4 2001
Equity copper sales (million lbs.) 362 91 77
Equity gold sales (000 ozs) 278 78 60
Net cash costs ($/lb Cu) (1) $0.31 $0.30 $0.42
o Batu Hijau had another impressive year and continues to exceed
expectations. Batu Hijau is now one of the world's lowest net cash cost
copper producers.
o For 2002, copper sales were marginally higher (+1%) than the prior year, as
lower grades were off-set by higher throughput. Copper recovery was
unchanged at 89%. Net cash costs (net of by-product credits) were $0.31 a
pound, a reduction of 16% from 2001.
o For the quarter, copper sales were up 17% and gold sales were up 30% as
higher grades and recovery rates more than offset marginally lower
throughput rates.
Other Operations 2002 Q4 2002 Q4 2001
Equity gold sales (000 ozs) 637 170 126
Total cash costs ($/oz) (1) $155 $166 $157
o At Zarafshan in Uzbekistan, 256,000 equity ounces were sold in 2002, 15%
more than 2001, as the average ore grade improved. Total cash costs were
marginally lower at $134 an ounce. For the quarter, sales and total cash
costs were similar to the prior year period.
o At Ovacik in Turkey, a former Normandy mine, 126,000 ounces were sold at a
total cash cost of $122 an ounce in the relevant period. This was the first
full year of operations at Ovacik.
o At Martha in New Zealand, a former Normandy mine, 108,000 equity ounces
were sold at a total cash cost of $156 an ounce in the relevant period.
Sales were as expected, but ground subsidence issues adversely impacted
costs.
o At Minahasa in Indonesia, 147,000 equity ounces were sold at a total cash
cost of $218 an ounce, both essentially as expected. The operation has
ceased mining but production continues from the processing of lower grade
stockpiles.
o At the Golden Grove zinc-copper mine, a former Normandy mine, 148 million
pounds of zinc and 45.7 million pounds of copper were sold at cash costs
per pound of $0.18 and $0.56, respectively, in
Q4 AND 2002 RESULTS (MARCH 28, 2003) Page 3 of 25
NEWMONT
the relevant period. The mine's results were better than expected for both
metal sales and costs. The mine also sold 13,600 ounces of gold.
1. For a reconciliation of total cash costs per ounce (a non-GAAP measure of
performance) to costs applicable to sales calculated and presented under GAAP,
please refer to the Supplemental Information attached.
Financial Highlights - 2002
Debt Reduction
During 2002, Newmont reduced its net debt to total capitalization ratio from
approximately 42% to 20% as it made net debt repayments of $547 million. The
company continues to strengthen its balance sheet and has a long-term target of
approximately 10% net debt to total capitalization.
Cash Position
Cash and cash equivalents totaled $401.7 million at the end of 2002, an increase
of 169% from a year ago.
Non-core asset sales totaled $241 million for the year (including
pre-acquisition sales initiated by Franco-Nevada and Normandy). An additional
$180 million was received on January 31, 2003, from the sale of the company's
TVX-Newmont Americas joint venture interest.
Australian Gold Hedge Books
In line with the company's no-hedging philosophy, the Australian gold hedge
books were reduced by 434,000 committed ounces and 105,000 uncommitted ounces
during the fourth quarter.
At year-end 2002, the acquired Australian gold hedge books stood at 5.15 million
committed ounces and 1.5 million uncommitted ounces, with a negative
mark-to-market valuation of $433 million. Approximately 67% of the negative
mark-to-market valuation relates to the Yandal Operations hedge book, which is
non-recourse to Newmont. Minimum scheduled deliveries for 2003 are in excess of
1.1 million committed ounces.
As of March 26, 2003, the company had repurchased 804,000 committed ounces and
delivered 449,000 committed ounces for the year, reducing its committed hedge
position to 3.9 million ounces. Newmont will continue to evaluate opportunities
to further deliver into, close out and simplify these gold hedge books.
ACCOUNTING
As requested by Newmont, PricewaterhouseCoopers has completed its reaudit of the
company's 1999 through 2001 financial statements. As a result of the re-audit,
certain corrections were required to the previously reported financial
statements. In addition to the previously announced restatements for a prepaid
forward gold sales contract and changes in depreciation calculations, the
company is changing its deferred stripping calculations at the Batu Hijau
operation to exclude in-pit, non-reserve material and is changing its inventory
accounting policy to include depreciation in inventory. The net cumulative
impact of the restatements was an increase in stockholders' equity at December
31, 2001 of $19.7 million. (Refer to page 10 - Supplemental Information - for
further details of these restatements.)
As a result of the restatements, the company will also be restating its
previously reported 2002 and 2001 quarterly financial results. These
restatements had a nominal impact on 2002 net income.
As previously reported, in order to conform to the currently preferred
accounting methodology, the company changed the way it calculates depreciation
at underground mining operations and recorded a positive, cumulative adjustment,
net of tax, of $7.7 million ($0.02 per share) effective January 1, 2002.
In a previous news release issued by the company on February 24, 2003, the
company stated that it had requested the Securities and Exchange Commission's
(SEC) concurrence with the company's allocation of the purchase price related to
the 2002 acquisitions of Normandy and Franco-Nevada and with the company's
methodology for future testing for impairment of goodwill. Although the company
provided and discussed such purchase price allocation and methodology with the
SEC, its review does not constitute its approval or concurrence therewith.
The acquisitions were accounted for using the purchase method of accounting
whereby the assets acquired and liabilities assumed were recorded at their fair
market values as of the date of acquisition. The excess of the purchase price
over such fair value was recorded as goodwill. Goodwill and other identifiable
intangibles not subject to amortization will be reviewed for possible impairment
at least annually.
Q4 AND 2002 RESULTS (MARCH 28, 2003) Page 4 of 25
NEWMONT
DIVIDEND INCREASE
On January 29, 2003, the Board of Directors approved a 33% increase in the
quarterly dividend to $0.04 per share.
Wayne W. Murdy, Chairman and Chief Executive Officer, commented: "With the
integration of our recent three-way merger complete and the positive outlook for
the gold price, the Board felt it appropriate to reward shareholders for their
patience by increasing the dividend immediately. We will continue to evaluate
our dividend policy going forward."
Exploration & Reserve Update
Exploration and research expenditures totaled $88.9 million and $33.2 million
for the year and fourth quarter, respectively.
Commenting on the exploration results, Newmont's President Pierre Lassonde said:
"For 2002, we made reserve replacement a company-wide responsibility and the
results speak for themselves. Through the collective skills of our operating and
exploration employees, our proprietary technology and unparalleled land position
in some of the world's best gold districts, we were able to replace depletion of
more than nine million ounces. The positive momentum is being maintained and our
objective is to increase reserves in 2003."
As reported in the company's February 24, 2003 news release, year-end gold
reserves were 86.9 million ounces, at a $300 gold price assumption. Reported
reserves include 3.7 million ounces from the company's equity interests in the
TVX-Newmont Americas joint venture, which was sold effective January 31, 2003,
and in Echo Bay, which was converted into a 13.8% equity interest in Kinross
Gold on the same date. Excluding the 3.7 million ounces, year-end reserves of
83.2 million ounces were essentially unchanged from 2001 pro-forma reserves.
Reserves were added at all four core operating regions, as well as at the
greenfields Akyem project in Ghana. Highlights include:
o In Nevada, the Carlin Trend operations replaced depletion for the first
time since 1996;
o At Minera Yanacocha in Peru, the Corimayo deposit was brought into
reserves;
o In Australia, reserves were replaced as the high-grade Westside discovery
at Jundee was brought into reserves;
o At Batu Hijau in Indonesia, copper and gold reserves increased by
approximately 13 percent, despite using a lower long-term copper price
assumption of $0.75 per pound; and
o At Akyem in Ghana, 1.6 million equity ounces were brought into reserves.
Q4 AND 2002 RESULTS (MARCH 28, 2003) Page 5 of 25
NEWMONT
STATEMENTS OF CONSOLIDATED OPERATIONS
Three months ended December 31 2002 2001
(in millions, except per share)
-------------------------
Sales and other income:
Sales - gold $777.3 $450.3
Sales - base metals, net 8.7 -
Royalties 12.8 0.2
Dividends, interest, foreign currency
exchange and other income 16.3 4.2
-------------------------
815.1 454.7
-------------------------
Costs and expenses:
Costs of sales - gold 429.7 283.8
Costs of sales - base metals 6.0 -
Depreciation, depletion and amortization 146.2 79.6
Exploration and research 33.2 12.1
General and administrative 36.6 16.6
Interest, net of capitalized interest 30.3 26.7
Write-down of assets 10.2 47.8
Other 23.3 3.4
-------------------------
715.5 470.0
-------------------------
Operating income (loss) 99.6 (15.3)
Gain (loss) on derivative instruments (25.4) -
-------------------------
Pre-tax income (loss) before minority
interest and equity income of affiliates 74.2 (15.3)
Income tax benefit 21.9 47.1
Minority interest in income of affiliates (35.1) (20.7)
Equity income of affiliates 14.1 9.1
-------------------------
Net income 75.1 20.2
Preferred stock dividends - (1.8)
-------------------------
Net income applicable to common shares $75.1 $18.4
=========================
Net income per common share, basic and
diluted $0.19 $0.10
=========================
Basic weighted average shares outstanding 401.7 195.1
=========================
Diluted weighted average shares
outstanding 403.0 195.1
=========================
Cash dividends declared, per common share $0.03 $0.03
=========================
STATEMENTS OF CONSOLIDATED OPERATIONS
For the years ended December 31 2002 2001
(in millions, except per share)
----------------------------
Sales and other income:
Sales - gold $2,566.8 $1,666.1
Sales - base metals, net 55.3 -
Royalties 35.7 0.6
Gain on sale of Lihir 47.3 -
Dividends, interest, foreign currency
exchange and other income 39.9 7.4
----------------------------
2,745.0 1,674.1
----------------------------
Costs and expenses:
Costs of sales - gold 1,536.3 1,092.8
Costs of sales - base metals 35.6 -
Depreciation, depletion and amortization 505.6 301.6
Exploration and research 88.9 55.5
General and administrative 115.2 61.2
Interest, net of capitalized interest 129.6 98.1
Write-down of assets 48.1 57.8
Merger and restructuring - 60.5
Other 29.6 11.5
----------------------------
2,488.9 1,739.0
----------------------------
Operating income (loss) 256.1 (64.9)
Gain (loss) on derivative instruments (39.8) 1.8
----------------------------
Pre-tax income (loss) before minority
interest, equity income of affiliates and
cumulative effect of a change in
accounting principle 216.3 (63.1)
Income tax (expense) benefit (19.9) 59.3
Minority interest in income of affiliates (97.5) (65.4)
Equity income of affiliates 51.4 22.6
----------------------------
Net income (loss) before cumulative
effect of change in accounting principle 150.3 (46.6)
Cumulative effect of change in accounting
principle, net of tax 7.7 -
----------------------------
Net income (loss) 158.0 (46.6)
Preferred stock dividends (3.7) (7.5)
----------------------------
Net income (loss) applicable to common
shares $154.3 ($54.1)
============================
Net income (loss) per common share,
basic before cumulative effect $0.40 ($0.28)
Cumulative effect of change in accounting
principle, per common share $0.02 -
----------------------------
Net income (loss) per common share, basic $0.42 ($0.28)
============================
Net income (loss) per common share,
diluted before cumulative effect $0.39 ($0.28)
Cumulative effect of change in accounting
principle, per common share $0.02 -
----------------------------
Net income (loss) per common share,
diluted $0.41 ($0.28)
============================
Basic weighted average shares outstanding 370.9 195.1
============================
Diluted weighted average shares
outstanding 373.0 195.1
============================
Cash dividends declared, per common share $0.12 $0.12
============================
Q4 AND 2002 RESULTS (MARCH 28, 2003) Page 6 of 25
NEWMONT
CONSOLIDATED BALANCE SHEETS
At December 31 2002 2001
(in millions)
------------- --------------
Assets
Cash and cash equivalents $401.7 $149.4
Inventories 498.3 452.1
Other current assets 213.3 245.5
------------- --------------
1,113.3 847.0
Property, plant and mine
development, net 2,317.9 1,930.2
Mineral interests, intangible
assets and other 1,415.3 177.0
Investments 1,133.4 543.3
Goodwill 3,024.6 -
Deferred income tax assets 761.4 403.5
Other long-term assets 388.6 240.7
------------- --------------
Total assets $10,154.5 $4,141.7
============= ==============
Liabilities
Current portion of long-term debt $115.3 $192.2
Derivative instruments 75.0 -
Accounts payable 105.3 -
Accrued liabilities and other 369.4 294.9
Deferred income tax liabilities 28.5 32.9
------------- --------------
693.5 520.0
Long-term debt 1,701.3 1,234.7
Derivative instruments 388.7 -
Deferred income tax liabilities 656.4 140.8
Reclamation and remediation
liabilities 302.6 176.9
Other long-term liabilities 638.2 306.7
------------- --------------
Total liabilities 4,380.7 2,379.1
Minority interest 354.6 262.8
Stockholders' equity 5,419.2 1,499.8
------------- --------------
Total liabilities, minority interest
and stockholders' equity $10,154.5 $4,141.7
============= ==============
STATEMENT OF CONSOLIDATED CASH FLOWS
For the years ended December 31 2002 2001
(in millions)
--------------------------------
Net income (loss) $158.0 ($46.6)
Adjustments to reconcile net
income (loss) to net cash provided
by operating activities
Depreciation, depletion and
amortization 505.6 301.6
Amortization of deferred
stripping costs, net 37.2 37.4
Deferred tax benefit (100.3) (91.5)
Write-down of assets 48.1 57.8
Cumulative effect of change in
accounting principle, net (7.7) -
Gain on marketable securities
of Lihir (47.3) -
Minority interest and other
items 64.2 50.3
--------------------------------
657.8 309.0
Decrease (increase) in
operating assets and liabilities 12.5 60.7
--------------------------------
Net cash provided by operating
activities 670.3 369.7
Additions to property, plant
and mine development (300.0) (389.9)
Sale of short-term investments 404.4 -
Cash received from
acquisitions, net 371.4 -
Cash consideration for Normandy
shares (461.7) -
Sale of marketable securities of
Lihir 84.0 -
Settlement of cross currency
swaps 50.8 -
Other (36.8) 4.9
--------------------------------
Net cash provided by (used in)
investing activities 112.1 (385.0)
Net (repayments)borrowings (547.4) 70.0
Proceeds from stock issuances 67.3 7.5
Dividends paid on common and
preferred stock (50.0) (31.0)
Other - 38.6
--------------------------------
Net cash (used in) provided by
financing activities (530.1) 85.1
Effect of exchange rate changes on
cash - 2.1
--------------------------------
Net change in cash and cash
equivalents 252.3 71.9
Cash and cash equivalents at
beginning of year 149.4 77.5
--------------------------------
Cash and cash equivalents at end of
year $401.7 $149.4
================================
Q4 AND 2002 RESULTS (MARCH 28, 2003) Page 7 of 25
NEWMONT
OPERATING STATISTICS SUMMARY
North America South America Australia Other (1) Equity
Investments
(2)
Three months ended December 31 2002 2001 2002 2001 2002 2001 2002 2001 2002 2001
- ---------------------------------------- ------- ------- ------ ------- ------- ------ ------- -------- ------ -------
Production Costs ($/oz)
Direct mining and production costs $179 $190 $119 $121 $202 $88 $165 $153 - -
Capitalized mining & other 14 19 (4) (3) (25) - (2) 2 - -
- ---------------------------------------- ------- ------- ------ ------- ------- ------ ------- -------- ------ -------
Cash operating costs 193 209 115 118 177 88 163 155 - -
Royalties and production taxes 6 4 4 3 13 8 3 2 - -
- ---------------------------------------- ------- ------- ------ ------- ------- ------ ------- -------- ------ -------
Total Cash Costs 199 213 119 121 190 96 166 157 - -
Reclamation and mine closure costs 4 4 5 4 5 5 13 5 - -
- ---------------------------------------- ------- ------- ------ ------- ------- ------ ------- -------- ------ -------
Total Costs Applicable to Sales (5) 203 217 124 125 195 101 179 162 - -
Non-cash inventory adjustment - - - - 22 - 15 - - -
Depreciation and amortization(4) 47 46 55 47 199 36 54 79 - -
Depreciation and amortization
adjustment - - - - (144) - 15 - - -
- ---------------------------------------- ------- ------- ------ ------- ------- ------ ------- -------- ------ -------
Total Production Costs(4) $250 $263 $179 $172 $272 $137 $263 $241 - -
- ---------------------------------------- ------- ------- ------ ------- ------- ------ ------- -------- ------ -------
Consolidated gold sales (000 ozs.)(3) 932.0 855.4 754.4 597.1 535.1 35.1 171.6 125.5
Equity gold sales (000 ozs) (3) 932.0 855.4 411.3 337.3 513.0 35.1 169.5 125.5 186.6 59.9
Average realized price per equity ounce $325 $280 $323 $277 $327 $279 $322 $281 - -
- ---------------------------------------- ------- ------- ------ ------- ------- ------ ------- -------- ------ -------
Total
Three months ended December 31 2002 2001
- ---------------------------------------- -------- --------
Production Costs ($/oz)
Direct mining and production costs $171 $166
Capitalized mining & other - 13
- ---------------------------------------- -------- --------
Cash operating costs 171 179
Royalties and production taxes 7 3
- ---------------------------------------- -------- --------
Total Cash Costs 178 182
Reclamation and mine closure costs 5 4
- ---------------------------------------- -------- --------
Total Costs Applicable to Sales (5) 183 186
Non-cash inventory adjustment 7 -
Depreciation and amortization(4) 87 49
Depreciation and amortization
adjustment (35) -
- ---------------------------------------- -------- --------
Total Production Costs(4) $242 $235
- ---------------------------------------- -------- --------
Consolidated gold sales (000 ozs.)(3) 2,396.4 1,613.1
Equity gold sales (000 ozs) (3) 2,215.7 1,413.2
Average realized price per equity ounce $328 $279
- ---------------------------------------- -------- --------
Copper Summary
Equity copper production (million lbs) 103.7 77.2
Equity copper sales (million lbs) 98.8 77.5
Net cash cost per equity pound ($/lb) $0.32 $0.42
Average realized price ($/lb) $0.76 $0.66
North America South America Australia Other (1) Equity
Investments
(2)
Year ended December 31 2002 2001 2002 2001 2002 2001 2002 2001 2002 2001
- ---------------------------------------- -------- ------- -------- -------- -------- ------ -------- ------- ------- ------
Production Costs ($/oz)
Direct mining and production costs $205 $204 $130 $124 $186 $97 $159 $128 - -
Capitalized mining & other 9 9 (3) (2) (6) 1 (7) 10 - -
- ---------------------------------------- -------- ------- -------- -------- -------- ------ -------- ------- ------- ------
Cash operating costs 214 213 127 122 180 98 152 138 - -
Royalties and production taxes 6 4 4 3 11 7 3 1 - -
- ---------------------------------------- -------- ------- -------- -------- -------- ------ -------- ------- ------- ------
Total Cash Costs 220 217 131 125 191 105 155 139 - -
Reclamation and mine closure costs 2 5 3 3 6 1 5 3 - -
- ---------------------------------------- -------- ------- -------- -------- -------- ------ -------- ------- ------- ------
Total Costs Applicable to Sales (5) 222 222 134 128 197 106 160 142 - -
Non-cash inventory adjustment - - - - 9 - 6 - - -
Depreciation and amortization(4) 50 47 55 51 94 34 51 61 - -
Depreciation and amortization
adjustment (1) - - - (35) - 18 - -
- ---------------------------------------- -------- ------- -------- -------- -------- ------ -------- ------- ------- ------
Total Production Costs(4) $271 $269 $189 $179 $265 $140 $235 $203 - -
- ---------------------------------------- -------- ------- -------- -------- -------- ------ -------- ------- ------- ------
Consolidated gold sales (000 ozs)(3) 3,224.0 3,223.6 2,575.4 2,226.8 1,759.0 126.0 645.9 565.4 - -
Equity gold sales (000 ozs) (3) 3,224.0 3,223.6 1,426.3 1,257.9 1,684.6 126.0 636.5 563.5 646.7 295.1
Average realized price per equity ounce $312 $272 $311 $271 $318 $271 $311 $270 - -
- ---------------------------------------- -------- ------- -------- -------- -------- ------ -------- ------- ------- ------
Total
Year ended December 31 2002 2001
- ---------------------------------------- -------- --------
Production Costs ($/oz)
Direct mining and production costs $179 $173
Capitalized mining & other 2 7
- ---------------------------------------- -------- --------
Cash operating costs 181 180
Royalties and production taxes 8 4
- ---------------------------------------- -------- --------
Total Cash Costs 189 184
Reclamation and mine closure costs 3 3
- ---------------------------------------- -------- --------
Total Costs Applicable to Sales (5) 192 187
Non-cash inventory adjustment 3 -
Depreciation and amortization(4) 62 50
Depreciation and amortization
adjustment (7) -
- ---------------------------------------- -------- --------
Total Production Costs(4) $250 $237
- ---------------------------------------- -------- --------
Consolidated gold sales (000 ozs)(3) 8,217.9 6,141.8
Equity gold sales (000 ozs) (3) 7,631.7 5,466.1
Average realized price per equity ounce $313 $271
- ---------------------------------------- -------- --------
Copper Summary
Equity copper production (million lbs) 430.9 369.5
Equity copper sales (million lbs) 407.9 360.0
Net cash cost per equity pound ($/lb) $0.34 $0.37
Average realized price ($/lb) $0.73 $0.70
Notes:
1. Other includes Ovacik (Turkey), Zarafshan (Uzbekistan), Minahasa (Indonesia)
and Martha (New Zealand).
2. Equity investments comprise Batu Hijau, TVX-Newmont Americas and Echo Bay
Mining Limited.
3. Includes 3,300 ounces for the fourth quarter and 13,600 for the year,
respectively, from the wholly-owned Golden Grove zinc/copper mine.
4. Items impacted by accounting restatement and/or accounting changes.
5. For a reconciliation of total cash costs per ounce (a non-GAAP measure of
performance) to costs applicable to sales, please refer to the Supplemental
Information attached.
Q4 AND 2002 RESULTS (MARCH 28, 2003) Page 8 of 25
NEWMONT
2003 GUIDANCE
Equity Gold Total
Sales(1) Cash Costs
(000 oz) ($/oz) (2)
- ---------------------------------- ------------------ --------------
North America
Nevada (100%) 2,550 $215
Mesquite (100%) 35 $160
Golden Giant (100%) 200 $252
Holloway (84.65%) 75 $255
La Herradura (44%) 75 $157
------------------ --------------
Sub-total ~2,850-2,980 ~$215-$221
------------------ --------------
South America
Yanacocha (51.35%) 1,300 $115
Kori Kollo (88%) 125 $240
------------------ --------------
Sub-total ~1,425-1,475 ~ $123-$129
------------------ --------------
Australia
Kalgoorlie (50%) 340 $275
Pajingo (100%) 345 $110
Tanami (85.86%) 600 $215
Yandal (100%) 640 $257
------------------ --------------
Sub-total ~1,905-1,940 ~$221-$226
------------------ --------------
Other
Martha (92.28%) 100 $188
Zarafshan (50%) 210 $152
Minahasa (94%) 90 $239
Ovacik (100%) 130 $165
------------------ --------------
Sub-total ~500-520 ~$176-$183
------------------ --------------
Equity Investments
Batu Hijau (56.25%) 270 -
------------------ --------------
TOTAL ~7,000-7,200 ~$193-$200
------------------ --------------
NOTES:
1. Equity gold sales at operating sites represent the midpoint of the guidance
range.
2. For a reconciliation of total cash costs per ounce (a non-GAAP measure of
performance) to costs applicable to sales calculated and presented under
GAAP, please refer to the Supplemental Information attached.
3. Ownership or economic interests are as at December 31, 2002.
Equity Copper
& Zinc Sales
(million Cash Costs
pounds) ($/lb)
- ------------------------------------- ---------------- ----------------
Batu Hijau (56.25%) - Copper ~340-360 ~$0.28-$0.30
Golden Grove (100%) - Copper ~35-45 ~$0.62-$0.66
Golden Grove (100%) - Zinc ~180-190 ~$0.26-$0.29
Financial Projections (in millions, except tax rate)
Royalty revenue $38 - $42
Depreciation, depletion and amortization $560 - $590
Exploration, research and development $95 - $100
General and administrative $90 - $95
Interest expense, net $90 - $95
Tax rate (assuming $340/oz gold) 20% - 25%
Capital expenditures $560 - $590
Sensitivity to Changes in the Gold Price
An annualized $1 change in the gold price changes annual earnings per share by
approximately $0.01, assuming all other factors remain constant.
An annualized $1 change in the gold price changes annual cash generated by
operating activities by approximately $5.3 million, assuming all other factors
remain constant.
Q4 AND 2002 RESULTS (MARCH 28, 2003) Page 9 of 25
NEWMONT
Supplemental Information
1. after-tax Summary of Restatements (in millions)
Years Ended December 31
--------------------------------------------------------------------------------
Pre-1999 1999 2000 2001 Cumulative
--------------------------------------------------------------------------------
Net Loss Applicable to Common Shares, as Previously
Reported (102.0) (102.4) (30.8)
--------------------------------------------------------------------------------
Prepaid Forward (1) - (3.6) (1.3) (1.1) (6.0)
Batu Hijau - Depreciation (2) - 0.3 (2.9) (3.2) (5.8)
Batu Hijau - Deferred stripping (3) - (0.5) (2.3) (2.2) (5.0)
Yanacocha - Depreciation (4) 4.2 1.6 (1.6) (3.3) 0.9
Inventory (5) 48.4 (15.1) 13.3 (13.5) 33.2
--------------------------------------------------------------------------------
Total adjustments to net loss 52.6 (17.2) 5.2 (23.3) 17.3
--------------------------------------------------------------------------------
Net Loss Applicable to Common Shares, as Restated (119.2) (97.2) (54.1)
=================================================
Shareholders' Equity at December 31, 2001 as Previously Reported 1,480.1
Adjustments to net loss (above) 17.3
Accumulated other comprehensive income (1) 2.4
------------
Increase in shareholders' equity 19.7
------------
Shareholders' Equity at December 31, 2001 as Restated 1,499.8
============
Notes:
1. As previously disclosed in release dated October 23, 2002. Prepaid forward
recategorized as Long-Term Debt.
2. As previously disclosed in release dated November 12, 2002. Exclusion of
non-reserve material from depreciation calculations.
3. Exclusion of non-reserve material from deferred stripping calculation.
4. As previously disclosed in released dated November 12, 2002. Corrected
depreciation on certain asset categories.
5. Inclusion of depreciation in inventory.
Q4 AND 2002 RESULTS (MARCH 28, 2003) Page 10 of 25
NEWMONT
2. Gold Hedge Position - Current Maturity Summary (1) (ooo ounces)
Acquired Normandy Gold Hedge Books Legacy Newmont Hedge Book
Gold Put Options Gold Forward Convertible Put Price Capped
Contracts Contracted Options & Other Contracts
Instruments (2) (4)
Years Ozs Price (3) Ozs Price (3) Ozs Price (3) Ozs Price (3)
2003 316 $299 1,061 $298 46 $311
2004 291 $300 1,140 $300 37 $311
2005 461 $312 368 $302 82 $308 500 $350
2006 169 $340 363 $323 65 $305
2007 20 $397 290 $331 181 $335
2008 118 $341 80 $305 933 $324 1,000 $384
2009 170 $345 30 $348 300 $373 600 $381
2010 208 $390
2011 209 $400 250 $392
Total/Average (1) 1,544 $317 3,332 $305 2,059 $345 2,350 $377
The mark-to-market value of the Normandy gold hedge books was negative $433
million at December 31, 2002. The breakdown of this is as follows:
o Newmont Gold Treasury Pty Ltd: negative $122 million;
o Newmont NFM: negative $23 million; and
o Newmont Yandal Operations Limited: negative $288 million.
The following table shows the approximate sensitivities of the US$
mark-to-market value of the Normandy gold hedge books to certain market
variables as of December 31, 2002:
Market Variables Change in Variable Change in
Mark-to-Market Value (millions)
- ----------------------------------- -------------------------------------- --------------------------------------
A$ Interest Rates +/-1.0% -/+ $40.0
US$/A$ Exchange Rates +/- US$0.01 +/-$35.4
Gold Lease Rates +/-1.0% +/-$15.2
US$ Interest Rates +/-1.0% -/+$10.5
US$ Gold Price/oz. +/-$1.00 -/+$6.6
Notes:
1. For more detailed descriptions, definitions and explanations, refer to the
company's 2002 Form 10-K.
2. Convertible Put Options and Other Instruments are comprised of the
following: a. Convertible option contracts; b. Knock-out/knock-in option
contracts; c. Indexed forward contracts; and d. 600,000 ounces of a
US$-to-gold swap contract maturing in 2008.
3. 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 outflow 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.
4. As of December 31, 2002 Newmont had a sold gold convertible position of
240,000 ounces. This position was originally overlaid with a bought
convertible position, however, the bought position was closed out during
the fourth quarter. This sold put position is not included in the above
table.
Q4 AND 2002 RESULTS (MARCH 28, 2003) Page 11 of 25
NEWMONT
3. GOLD PRODUCTION SUMMARY - AMERICAS
Nevada Canada Peru Bolivia
- ------------------------------------------------- --------- ------- -------- -------- -------- -------- -------- --------
Three months ended December 31 2002 2001 2002 2001 2002 2001 2002 2001
- ------------------------------------------------- --------- ------- -------- -------- -------- -------- -------- --------
Tons Mined (000 dry short tons)
Open-Pit 39,068 33,583 n/a n/a 50,259 44,607 4,045 5,370
Underground 558 295 450 410 n/a n/a n/a n/a
Tons Processed (000 dry short tons)
Oxide 1,390 1,522 448 402 n/a n/a n/a n/a
Refractory 2,219 1,972 n/a n/a n/a n/a 1,929 1,841
Leach 3,445 7,194 n/a n/a 39,748 26,801 1,815 1,692
Average Ore Grade (oz/ton)
Oxide 0.107 0.109 0.243 0.239 n/a n/a n/a n/a
Refractory 0.247 0.223 n/a n/a n/a n/a 0.041 0.059
Leach 0.029 0.031 n/a n/a 0.024 0.025 0.017 0.021
Average Mill Recovery Rate (%)
Oxide 72.6% 70.0% 94.9% 94.9% n/a n/a n/a n/a
Refractory 90.4% 88.0% n/a n/a n/a n/a 64.8% 61.5%
Ounces Produced (000) 801.8 715.1 103.3 94.0 696.1 522.9 65.7 85.1
Equity Ounces Produced (000)
Oxide 121.7 127.0 103.3 94.0 n/a n/a n/a n/a
Refractory 568.0 447.4 n/a n/a n/a n/a 45.2 59.9
Leach 112.1 140.7 n/a n/a 357.4 268.5 12.6 15.1
- ------------------------------------------------- --------- ------- -------- -------- -------- -------- -------- --------
Total 801.8 715.1 103.3 94 357.4 268.5 57.8 75.0
Equity Ounces Sold (000) 796.4 716.6 107.0 112.5 353.8 263.6 57.5 73.7
- ------------------------------------------------- --------- ------- -------- -------- -------- -------- -------- --------
- ------------------------------------------------- --------- ------- -------- -------- -------- -------- -------- --------
Production Costs ($/oz)
Direct mining and production costs $176 $190 $202 $178 $110 $115 $172 $143
Capitalized mining & other 17 25 1 1 (3) (2) (7) (4)
- ------------------------------------------------- --------- ------- -------- -------- -------- -------- -------- --------
Cash operating costs 193 215 203 179 107 113 165 139
Royalties and production taxes 7 4 1 - 5 3 - -
- ------------------------------------------------- --------- ------- -------- -------- -------- -------- -------- --------
Total Cash Costs 200 219 204 179 112 116 165 139
Reclamation and mine closure costs 3 4 6 6 3 3 13 5
- ------------------------------------------------- --------- ------- -------- -------- -------- -------- -------- --------
Total Costs Applicable to Sales 203 223 210 185 115 119 178 144
Non-cash inventory adjustment - - - - - - - -
Depreciation and amortization 42 41 80 64 55 45 53 57
Depreciation and amortization adjustment - - - - - - - -
- ------------------------------------------------- --------- ------- -------- -------- -------- -------- -------- --------
Total Production Costs $245 $264 $290 $249 $170 $164 $231 $201
- ------------------------------------------------- --------- ------- -------- -------- -------- -------- -------- --------
Other (1)
- ------------------------------------------------- -------- --------
Three months ended December 31 2002 2001
- ------------------------------------------------- -------- --------
Tons Mined (000 dry short tons)
Open-Pit 2,752 3,063
Underground n/a n/a
Tons Processed (000 dry short tons)
Oxide n/a n/a
Refractory n/a n/a
Leach 1,010 885
Average Ore Grade (oz/ton)
Oxide n/a n/a
Refractory n/a n/a
Leach 0.026 0.025
Average Mill Recovery Rate (%)
Oxide n/a n/a
Refractory n/a n/a
Ounces Produced (000) 28.6 26.3
Equity Ounces Produced (000)
Oxide n/a n/a
Refractory n/a n/a
Leach 28.6 26.3
- ------------------------------------------------- -------- --------
Total 28.6 26.3
Equity Ounces Sold (000) 28.6 26.3
- ------------------------------------------------- -------- --------
- ------------------------------------------------- -------- --------
Production Costs ($/oz)
Direct mining and production costs $171 $211
Capitalized mining & other (4) (31)
- ------------------------------------------------- -------- --------
Cash operating costs 167 180
Royalties and production taxes 3 5
- ------------------------------------------------- -------- --------
Total Cash Costs 170 185
Reclamation and mine closure costs 2 3
- ------------------------------------------------- -------- --------
Total Costs Applicable to Sales 172 188
Non-cash inventory adjustment - -
Depreciation and amortization 79 86
Depreciation and amortization adjustment - -
- ------------------------------------------------- -------- --------
Total Production Costs $251 $274
- ------------------------------------------------- -------- --------
Notes:
1. Other includes La Herradura (Mexico) and Mesquite (California).
Q4 AND 2002 RESULTS (MARCH 28, 2003) Page 12 of 25
NEWMONT
3. GOLD PRODUCTION SUMMARY - AMERICAS (CONTINUED)
Nevada Canada Peru Bolivia
- ----------------------------------------- --------- ---------- -------- ------- --------- --------- ---------- ----------
Year ended December 31 2002 2001 2002 2001 2002 2001 2002 2001
- ----------------------------------------- --------- ---------- -------- ------- --------- --------- ---------- ----------
Tons Mined (000 dry short tons)
Open-Pit 139,985 139,000 n/a n/a 203,720 155,707 18,676 18,444
Underground 1,538 1,123 1,621 1,607 n/a n/a n/a n/a
Tons Processed (000 dry short tons)
Oxide 5,164 5,395 1,628 1,605 n/a n/a n/a n/a
Refractory 9,201 8,844 n/a n/a n/a n/a 7,675 7,582
Leach 15,027 24,448 n/a n/a 148,297 84,738 6,479 3,853
Average Ore Grade (oz/ton)
Oxide 0.119 0.108 0.230 0.236 n/a n/a n/a n/a
Refractory 0.224 0.218 n/a n/a n/a n/a 0.047 0.059
Leach 0.031 0.033 n/a n/a 0.023 0.030 0.018 0.021
Average Mill Recovery Rate (%)
Oxide 74.4% 70.5% 95.0% 95.2% n/a n/a n/a n/a
Refractory 88.6% 88.9% n/a n/a n/a n/a 60.7% 61.8%
Ounces Produced (000) 2,718.1 2,696.9 364.5 348.7 2,285.6 1,902.5 284.1 305.6
Equity Ounces Produced (000)
Oxide 474.8 433.2 364.5 348.7 n/a n/a n/a n/a
Refractory 1,805.7 1,749.3 n/a n/a n/a n/a 195.9 247.4
Leach 437.6 514.4 n/a n/a 1,173.6 976.9 54.1 21.6
- ----------------------------------------- --------- ---------- -------- ------- --------- --------- ---------- ----------
Total 2,718.1 2,696.9 364.5 348.7 1,173.6 976.9 250.0 269.0
Equity Ounces Sold (000) 2,723.5 2,703.2 379.2 373.1 1,176.9 983.1 249.4 274.8
- ----------------------------------------- --------- ---------- -------- ------- --------- --------- ---------- ----------
Production Costs ($/oz)
Direct mining and production costs $207 $207 $196 $187 $123 $113 $163 $163
Capitalized mining & other 11 11 1 1 (2) (1) (7) (5)
- ----------------------------------------- --------- ---------- -------- ------- --------- --------- ---------- ----------
Cash operating costs 218 218 197 188 121 112 156 158
Royalties and production taxes 7 4 1 4 4 3 - -
- ----------------------------------------- --------- ---------- -------- ------- --------- --------- ---------- ----------
Total Cash Costs 225 222 198 192 125 115 156 158
Reclamation and mine closure costs 2 4 6 6 3 3 7 5
- ----------------------------------------- --------- ---------- -------- ------- --------- --------- ---------- ----------
Total Costs Applicable to Sales 227 226 204 198 128 118 163 163
Non-cash inventory adjustment 1 - - - - - - -
Depreciation and amortization 44 43 71 67 57 48 48 62
Depreciation and amortization adjustment (1) - - - - - - -
- ----------------------------------------- --------- ---------- -------- ------- --------- --------- ---------- ----------
Total Production Costs $271 $269 $275 $265 $185 $166 $211 $225
- ----------------------------------------- --------- ---------- -------- ------- --------- --------- ---------- ----------
Other (1)
- ----------------------------------------- -------- --------
Year ended December 31 2002 2001
- ----------------------------------------- -------- --------
Tons Mined (000 dry short tons)
Open-Pit 11,774 19,030
Underground n/a n/a
Tons Processed (000 dry short tons)
Oxide n/a n/a
Refractory n/a n/a
Leach 3,981 7,861
Average Ore Grade (oz/ton)
Oxide n/a n/a
Refractory n/a n/a
Leach 0.026 0.028
Average Mill Recovery Rate (%)
Oxide n/a n/a
Refractory n/a n/a
Ounces Produced (000) 121.3 147.3
Equity Ounces Produced (000)
Oxide n/a n/a
Refractory n/a n/a
Leach 121.3 147.3
- ----------------------------------------- -------- --------
Total 121.3 147.3
Equity Ounces Sold (000) 121.3 147.3
- ----------------------------------------- -------- --------
Production Costs ($/oz)
Direct mining and production costs $179 $188
Capitalized mining & other (7) (1)
- ----------------------------------------- -------- --------
Cash operating costs 172 187
Royalties and production taxes 4 6
- ----------------------------------------- -------- --------
Total Cash Costs 176 193
Reclamation and mine closure costs 2 11
- ----------------------------------------- -------- --------
Total Costs Applicable to Sales 178 204
Non-cash inventory adjustment - -
Depreciation and amortization 77 72
Depreciation and amortization adjustme - -
- ----------------------------------------- -------- --------
Total Production Costs $255 $276
- ----------------------------------------- -------- --------
Notes:
1. Other includes La Herradura (Mexico) and Mesquite (California).
Q4 AND 2002 RESULTS (MARCH 28, 2003) Page 13 of 25
4. Gold Production Summary - Australia
Kalgoorlie Pajingo Tanami Yandal
---------------------------------------------- --------- ---------- --------- --------- ---------- --------- ---------- ------
Three months ended December 31 2002 2001 2002 2001 2002 2001 2002 2001
---------------------------------------------- --------- ---------- --------- --------- ---------- --------- ---------- ------
<s> <c> <c> <c> <c> <c> <c> <c> <c>
Tons Mined (000 dry short tons) 12,143 - 184 91 4797 - 955 -
Tons Processed (000 dry short tons) 1,785 - 201 93 1,080 - 1,513 -
Average Ore Grade (oz/ton) 0.062 - 0.439 0.353 0.137 - 0.127 -
Average Mill Recovery Rate (%) 80.8% - 96.6% 96.7% 96.3% - 92.2% -
Ounces Produced (000) 98.4 - 86.9 31.8 142.9 - 172.4 -
Equity Ounces Produced (000) 98.4 - 86.9 31.8 122.8 - 172.4 -
Equity Ounces Sold (000) 103.6 - 87.8 35.1 134.3 - 187.3 -
---------------------------------------------- --------- ---------- --------- --------- ---------- --------- ---------- ------
Production Costs ($/oz)
Direct mining and production costs $264 - $95 $88 $230 - $196 -
Capitalized mining & other (67) - (3) - (39) - 1 -
---------------------------------------------- --------- ---------- --------- --------- ---------- --------- ---------- ------
Cash operating costs 197 - 92 88 191 - 197 -
Royalties and production taxes 7 - 12 8 24 - 8 -
---------------------------------------------- --------- ---------- --------- --------- ---------- --------- ---------- ------
Total Cash Costs 204 - 104 96 215 - 205 -
Reclamation and mine closure costs 5 - 4 5 6 - 4 -
---------------------------------------------- --------- ---------- --------- --------- ---------- --------- ---------- ------
Total Costs Applicable to Sales 209 - 108 101 221 - 209 -
Non-cash inventory adjustment 109 - 3 - (1) - (1) -
Depreciation and amortization 24 - 42 36 18 - 96 -
Depreciation and amortization adjustment 3 - (11) - 37 - (15) -
---------------------------------------------- --------- ---------- --------- --------- ---------- --------- ---------- ------
Total Production Costs $345 - $142 $137 $275 - $289 -
---------------------------------------------- --------- ---------- --------- --------- ---------- --------- ---------- ------
---------------------------------------------- --------- ---------- --------- --------- ---------- --------- ---------- ------
Year ended December 31
---------------------------------------------- --------- ---------- --------- --------- ---------- --------- ---------- ------
Tons Mined (000 dry short tons) 40,477 - 656 368 21,630 - 9,196 -
Tons Processed (000 dry short tons) 6,223 - 738 361 3,802 - 4,929 -
Average Ore Grade (oz/ton) 0.060 - 0.397 0.351 0.142 - 0.133 -
Average Mill Recovery Rate (%) 82.2% - 96.8% 96.9% 96.5% - 92.2% -
Ounces Produced (000) 321.5 - 290.7 123.8 525.5 - 610.3 -
Equity Ounces Produced (000) 321.5 - 290.7 123.8 451.4 - 610.3 -
Equity Ounces Sold (000) 324.7 - 296.4 126.0 452.4 - 611.1 -
---------------------------------------------- --------- ---------- --------- --------- ---------- --------- ---------- ------
Production Costs ($/oz)
Direct mining and production costs $222 - $90 $97 $197 - $207 -
Capitalized mining & other (14) - (4) 1 (11) - - -
---------------------------------------------- --------- ---------- --------- --------- ---------- --------- ---------- ------
Cash operating costs 208 - 86 98 186 - 207 -
Royalties and production taxes 7 - 9 7 19 - 8 -
---------------------------------------------- --------- ---------- --------- --------- ---------- --------- ---------- ------
Total Cash Costs 215 - 95 105 205 - 215 -
Reclamation and mine closure costs 5 - 4 1 6 - 5 -
---------------------------------------------- --------- ---------- --------- --------- ---------- --------- ---------- ------
Total Costs Applicable to Sales 220 - 99 106 211 - 220 -
Non-cash inventory adjustment 42 - 3 - 2 - - -
Depreciation and amortization 23 - 42 34 24 - 85 -
Depreciation and amortization adjustment 4 - 27 - 36 - (13) -
---------------------------------------------- --------- ---------- --------- --------- ---------- --------- ---------- ------
Total Production Costs $289 - $171 $140 $273 - $292 -
---------------------------------------------- --------- ---------- --------- --------- ---------- --------- ---------- ------
Q4 AND 2002 RESULTS (MARCH 28, 2003) Page 14 of 25
5. Gold Production Summary - Other
Zarafshan, Ovacik, Martha, Minahasa,
Uzbekistan Turkey New Zealand Indonesia
------------------------------------------- -------- ------- -------- -------- ------- -------- -------- -------
Three months ended December 31 2002 2001 2002 2001 2002 2001 2002 2001
------------------------------------------- -------- ------- -------- -------- ------- -------- -------- -------
Tons Mined (000 dry short tons) n/a n/a 1,134 - 1,918 - - 333
Tons Milled/Processed (000 dry short tons)
Leach 1,955 1,838 - - - - - 205
Mill n/a n/a 120 - 333 - 192 167
Average Ore Grade (oz/ton) 0.054 0.047 0.340 - 0.095 - 0.199 0.152
Average Mill Recovery Rate (%) n/a n/a 93.9% - 89.6% - 91.1% 91.7%
Ounces Produced (000) 58.2 54.7 37.7 - 28.5 - 37.8 59.0
Equity Ounces Produced (000) 58.2 54.7 37.7 - 28.5 - 35.5 56.7
Equity Ounces Sold (000) 61.8 59.4 41.1 - 33.5 - 33.1 66.1
------------------------------------------- -------- ------- -------- -------- ------- -------- -------- -------
Production Costs ($/oz)
Direct mining and production costs $129 $134 $119 - $203 - $253 $170
Capitalized mining & other 3 2 (21) - 5 - 2 3
------------------------------------------- -------- ------- -------- -------- ------- -------- -------- -------
Cash operating costs 132 136 98 - 208 - 255 173
Royalties and production taxes - - 10 - - - 4 2
------------------------------------------- -------- ------- -------- -------- ------- -------- -------- -------
Total Cash Costs 132 136 108 - 208 - 259 175
Reclamation and mine closure costs 1 1 5 - 9 - 50 8
------------------------------------------- -------- ------- -------- -------- ------- -------- -------- -------
Total Costs Applicable to Sales 133 137 113 - 217 - 309 183
Non-cash inventory adjustment - - 23 - 47 - - -
Depreciation and amortization 38 44 58 - 100 - 33 111
Depreciation and amortization
adjustment - - 43 - 21 - - -
------------------------------------------- -------- ------- -------- -------- ------- -------- -------- -------
Total Production Costs $171 $181 $237 - $385 - $342 $294
------------------------------------------- -------- ------- -------- -------- ------- -------- -------- -------
Zarafshan, Ovacik, Martha, Minahasa,
Uzbekistan Turkey New Zealand Indonesia
------------------------------------------- -------- ------- -------- -------- ------- -------- -------- -------
Year ended December 31 2002 2001 2002 2001 2002 2001 2002 2001
------------------------------------------- -------- ------- -------- -------- ------- -------- -------- -------
Tons Mined (000 dry short tons) n/a n/a 4,296 - 6,059 - - 5,586
Tons Milled/Processed (000 dry short tons)
Leach 7,867 7,677 - - - - - -
Mill n/a n/a 361 - 1,153 - 717 716
Average Ore Grade (oz/ton) 0.053 0.044 0.364 - 0.101 - 0.213 0.176
Average Mill Recovery Rate (%) n/a n/a 92.9% - 90.4% - 90.9% 91.4%
Ounces Produced (000) 259.0 216.7 124.2 - 106.1 - 154.1 326.0
Equity Ounces Produced (000) 259.0 216.7 124.2 - 106.1 - 144.9 323.7
Equity Ounces Sold (000) 255.8 222.0 125.7 - 107.8 - 147.2 341.5
------------------------------------------- -------- ------- -------- -------- ------- -------- -------- -------
Production Costs ($/oz)
Direct mining and production costs $132 $133 $119 - $195 - $212 $125
Capitalized mining & other 2 3 (8) - (39) - 2 14
------------------------------------------- -------- ------- -------- -------- ------- -------- -------- -------
Cash operating costs 134 136 111 - 156 - 214 139
Royalties and production taxes - - 11 - - - 4 3
------------------------------------------- -------- ------- -------- -------- ------- -------- -------- -------
Total Cash Costs 134 136 122 - 156 - 218 142
Reclamation and mine closure costs (1) 1 5 - 7 - 16 3
------------------------------------------- -------- ------- -------- -------- ------- -------- -------- -------
Total Costs Applicable to Sales 133 137 127 - 163 - 234 145
Non-cash inventory adjustment - - 12 - 19 - - -
Depreciation and amortization 40 54 35 - 86 - 60 66
Depreciation and amortization
adjustment - - 55 - 41 - - -
------------------------------------------- -------- ------- -------- -------- ------- -------- -------- -------
Total Production Costs $173 $191 $229 - $309 - $294 $211
------------------------------------------- -------- ------- -------- -------- ------- -------- -------- -------
Q4 AND 2002 RESULTS (MARCH 28, 2003) Page 15 of 25
6. Base Metals - Batu Hijau and Golden Grove
Three Months Ended December 31 Year Ended December 31
- ------------------------------------------------ -------------- ----------------- -------------- --------------
Batu Hijau 2002 2001 2002 2001
- ------------------------------------------------ -------------- ----------------- -------------- --------------
Total tons mined (000) 55,223 50,640 240,484 183,991
Dry tons processed (000) 12,728 13,041 51,754 48,358
Average copper grade (%) 0.68% 0.61% 0.72% 0.75%
Average copper recovery rate (%) 87.8% 84.8% 89.0% 89.2%
Copper pounds produced (000) 152,289 137,297 657,664 656.954
Equity copper pounds produced (000) 85,663 77,230 369,936 369,537
Equity copper pounds sold (000) 90,826 77,464 362,253 359,955
Realized copper price ($/lb) $0.77 $0.66 $0.72 $0.70
Revenue $70,204 $51,357 $260,670 $251,601
- ------------------------------------------------ -------------- ----------------- -------------- --------------
Cash production costs $53,057 $49,480 $200,619 $214,417
By-product credits (25,811) (16,965) (89,548) (81,709)
- ------------------------------------------------ -------------- ----------------- -------------- --------------
Net cash costs $27,246 $32,515 $111,071 $132,708
Noncash costs 17,586 20,779 66,650 61,385
- ------------------------------------------------ -------------- ----------------- -------------- --------------
Total production costs $44,832 $53,294 $177,721 $194,093
================================================ ============== ================= ============== ==============
Pounds of copper sold (000) 90,826 77,464 362,253 359,955
Ounces of gold sold (000) 77.8 59.9 278.0 295.1
Net cash cost ($/lb) $0.30 $0.42 $0.31 $0.37
Noncash cost ($/lb) 0.19 0.27 0.18 0.17
- ------------------------------------------------ -------------- ----------------- -------------- --------------
Total cash costs ($/lb) $0.49 $0.69 $0.49 $0.54
================================================ ============== ================= ============== ==============
Three Months Ended December 31 Year Ended December 31
- ------------------------------------------------ -------------- ----------------- -------------- --------------
Golden Grove 2002 2001 2002 2001
- ------------------------------------------------ -------------- ----------------- -------------- --------------
Total tons mined 333,027 - 1,284,998 -
Dry tons processed 355,860 - 1,273,222 -
Average copper grade (%) 4.6% - 4.7% -
Average copper recovery rate (%) 94.2% - 90.7% -
Copper produced pounds (000) 18,046 - 60,973 -
Copper sold pounds (000) 7,993 - 45,662 -
Realized copper price ($/lb) $0.59 - $0.79 -
Copper cash cost per pound ($/lb) $0.59 - $0.56 -
Average zinc grade (%) 13.9% - 13.9% -
Average zinc recovery rate (%) 95.5% - 87.7% -
Zinc produced pounds (000) 38.744 - 114,806 -
Zinc sold pounds (000) 35,148 - 147,985 -
Realized zinc price ($/lb) $0.29 - $0.27 -
Zinc cash cost per pound ($/lb) $0.20 - $0.18 -
Ounces of gold sold (000) 3.3 - 13.6 -
Ounces of silver sold (000) 223.4 - 1,122.9 -
Q4 AND 2002 RESULTS (MARCH 28, 2003) Page 16 of 25
7. 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 per ounce or pound is a non-GAAP performance measure that
is intended to provide investors with information about the cash generating
capacities of Newmont's mining operations. Newmont's management uses this
measure 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.
For the Year Ended Total
December 31, 2002 Nevada Mesquite La Herradura Golden Giant Holloway North America
- ----------------------------------------- ------------- ------------- ------------- ------------- ------------- -------------
Costs applicable to sales under GAAP..... $620.1 $10.1 $11.5 $56.8 $20.4 $718.9
Minority interest ....................... -- -- -- -- -- --
Reclamation and other .................. (6.9) -- (0.2) (1.7) (0.5) (9.3)
Non-cash inventory adjustment .......... (1.5) -- -- -- -- (1.5)
Other .................................. (0.1) -- -- -- -- (0.1)
------------- ------------- ------------- ------------- ------------- -------------
Total cash cost for per ounce
calculation .......................... 611.6 10.1 11.3 55.1 19.9 708.0
Reclamation and other .................. 8.4 -- 0.2 1.6 0.5 10.7
Depreciation, depletion and amortization 118.2 6.3 3.1 20.5 6.7 154.8
Minority interest and other ............ -- -- -- -- -- --
------------- ------------- ------------- ------------- ------------- -------------
Total production cost for per ounce
calculation .......................... $738.2 $16.4 $14.6 $77.2 $27.1 $873.5
Equity ounces sold (000) ............... 2,723.5 57.1 64.2 281.5 97.7 3,224.0
Equity cash cost per ounce sold ........ $225 $177 $176 $196 $204 $220
Equity production cost per ounce sold .. $271 $287 $227 $274 $277 $271
For the Year Ended Total South
December 31, 2002 Yanacocha Kori Kollo America Pajingo Kalgoorlie Yandal
- ----------------------------------------- ------------- ------------- ------------- ------------- ------------- -------------
Costs applicable to sales under GAAP..... $302.0 $46.1 $348.1 $30.5 $85.0 $134.8
Minority interest ..................... (152.3) (5.6) (157.9) -- -- --
Reclamation and other .................. (3.0) (1.6) (4.6) (1.2) (1.7) (3.2)
Non-cash inventory adjustment .......... -- -- -- (1.0) (13.6) (0.1)
Other .................................. 0.7 -- 0.7 -- -- --
------------- ------------- ------------- ------------- ------------- -------------
Total cash cost for per ounce
calculation .......................... 147.4 38.9 186.3 28.3 69.7 131.5
Reclamation and other .................. 3.0 1.6 4.6 1.8 15.3 3.1
Depreciation, depletion and amortization 121.5 13.8 135.3 20.6 9.0 43.5
Minority interest and other ............ (54.6) (1.7) (56.3) -- -- --
------------- ------------- ------------- ------------- ------------- -------------
Total production cost for per ounce
calculation .......................... $217.3 $52.6 $269.9 $50.7 $94.0 $178.1
Equity ounces sold (000) ............... 1,176.9 249.4 1,426.3 296.4 324.7 611.1
Equity cash cost per ounce sold ........ $125 $156 $131 $95 $215 $215
Equity production cost per ounce sold .. $185 $211 $189 $171 $289 $292
Q4 AND 2002 RESULTS (MARCH 28, 2003) Page 17 of 25
For the Year Ended Total Zarafshan,
December 31, 2002 NFM Tanami Australia Uzbekistan Minahasa Martha Ovacik
- ----------------------------------------- ------------- ------------- ------------- ------------- ------------- -------------
Costs applicable to sales under GAAP..... $112.3 $362.6 $34.0 $36.6 $19.6 $17.5
Minority interest ..................... (15.8) (15.8) -- -- -- --
Reclamation and other .................. (2.6) (8.7) 0.3 (2.4) (0.7) (0.7)
Non-cash inventory adjustment .......... (0.9) (15.6) -- -- (2.1) (1.5)
Other .................................. -- -- -- (2.1) -- --
------------- ------------- ------------- ------------- ------------- -------------
Total cash cost for per ounce
calculation .......................... 93.0 322.5 34.3 32.1 16.8 15.3
Reclamation and other .................. 2.7 22.9 (0.3) 2.4 2.6 2.0
Depreciation, depletion and amortization 32.5 105.6 10.3 9.5 13.9 11.5
Minority interest and other ............ (4.5) (4.5) -- (0.6) -- --
------------- ------------- ------------- ------------- ------------- -------------
Total production cost for per ounce
calculation .......................... $123.7 $446.5 $44.3 $43.4 $33.3 $28.8
Equity ounces sold (000) ............... 452.4 1,684.6 255.8 147.2 107.8 125.7
Equity cash cost per ounce sold ........ $205 $191 $134 $218 $156 $122
Equity production cost per ounce sold .. $273 $265 $173 $294 $309 $229
For the Year Ended Total Other Other
December 31, 2002 International Total Gold Golden Grove Kasese Non-Gold Consolidated
- ----------------------------------------- ------------- ------------- ------------- ------------- --------- -------------
Costs applicable to sales under GAAP..... $107.7 $1,537.3 $27.3 $7.8 $(0.4) $1,572.0
Minority interest ..................... -- (173.7) -- -- -- (173.7)
Reclamation and other .................. (3.5) (26.1) -- -- -- (26.1)
Non-cash inventory adjustment .......... (3.6) (20.7) -- -- -- (20.7)
Other .................................. (2.1) (1.5) (27.3) (7.8) 0.4 (36.2)
------------- ------------- ------------- ------------- ---------- ------------
Total cash cost for per ounce
calculation .......................... 98.5 1,315.3 -- -- -- 1,315.3
Reclamation and other .................. 6.7 44.9 (1.7) -- 3.7 46.9
Depreciation, depletion and amortization 45.2 440.9 22.9 -- 41.8 505.6
Minority interest and other ............ (0.6) (61.4) (21.2) -- (45.4) (128.0)
------------- ------------- ------------- ------------- ---------- -------------
Total production cost for per ounce
calculation .......................... $149.8 $1,739.7 $-- $-- $-- $1,739.7
Equity ounces sold (000) ............... 636.5 6,971.4 n/a n/a n/a 6,971.4
Equity cash cost per ounce sold ........ $155 $189 n/a n/a n/a $189
Equity production cost per ounce sold .. $235 $250 n/a n/a n/a $250
Q4 AND 2002 RESULTS (MARCH 28, 2003) Page 18 of 25
For the Year Ended Total
December 31, 2001 Nevada Mesquite La Herradura Golden Giant Holloway North America
- ----------------------------------------- ------------- ------------- ------------- ------------- ------------- -------------
Costs applicable to sales under GAAP..... $610.9 $20.4 $9.6 $54.8 $19.1 $714.8
Minority interest ...................... -- -- -- -- -- --
Reclamation ............................ (10.3) (1.5) (0.2) (1.7) (0.4) (14.1)
Other .................................. -- -- -- -- -- --
------------- ------------- ------------- ------------- ------------- -------------
Total cash cost for per ounce
calculation .......................... 600.6 18.9 9.4 53.1 18.7 700.7
Reclamation ............................ 10.3 1.5 0.2 1.7 0.4 14.1
Depreciation, depletion and amortization 117.4 7.5 3.1 18.2 6.6 152.8
Minority interest and other ............ -- -- -- -- -- --
Total production cost for per ounce
calculation .......................... $728.3 $27.9 $12.7 $73.0 $25.7 $867.6
Equity ounces sold (000) ............... 2,703.2 92.6 54.7 283.7 89.4 3,223.6
Equity cash cost per ounce sold ........ $222 $205 $173 $187 $209 $217
Equity production cost per ounce sold .. $269 $301 $233 $257 $288 $269
For the Year Ended Total South Zarafshan
December 31, 2001 Yanacocha Kori Kollo America Pajingo Uzbekistan Minahasa
- ----------------------------------------- ------------- ------------- ------------- ------------- ------------- -------------
Costs applicable to sales under GAAP..... $233.9 $50.8 $284.7 $13.4 $30.4 $49.7
Minority interest ...................... (117.6) (6.1) (123.7) -- -- --
Reclamation ............................ (2.9) (1.4) (4.3) (0.2) (0.2) (1.0)
Other .................................. -- -- -- -- -- --
------------- ------------- ------------- ------------- ------------- -------------
Total cash cost for per ounce
calculation .......................... 113.4 43.3 156.7 13.2 30.2 48.7
Reclamation ............................ 2.9 1.4 4.3 0.2 0.2 1.0
Depreciation, depletion and amortization 82.3 19.4 101.7 4.3 12.0 22.9
Minority interest and other ............ (35.7) (2.3) (38.0) -- -- --
------------- ------------- ------------- ------------- ------------- -------------
Total production cost for per ounce
calculation .......................... $162.9 $61.8 $224.7 $17.7 $42.4 $72.6
Equity ounces sold (000) ............... 983.1 274.8 1,257.9 126.0 222.0 341.5
Equity cash cost per ounce sold ........ $115 $158 $125 $105 $136 $142
Equity production cost per ounce sold .. $166 $225 $179 $140 $191 $211
For the Year Ended Corporate
December 31, 2001 and Other Consolidated
- ----------------------------------------- ------------- -------------
Costs applicable to sales under GAAP ... $(0.2) $1,092.8
Minority interest ...................... -- (123.7)
Reclamation ............................ -- (19.8)
Other .................................. 0.2 0.2
------------- -------------
Total cash cost for per ounce
calculation .......................... $-- $949.5
Reclamation ............................ -- 19.8
Depreciation, depletion and amortization 7.9 301.6
Minority interest and other ............ (7.9) (45.9)
------------- -------------
Total production cost for per ounce
calculation .......................... $-- $1,225.0
Equity ounces sold (000) ............... n/a 5,171.0
Equity cash cost per ounce sold ........ n/a $184
Equity production cost per ounce sold .. n/a $237
Q4 AND 2002 RESULTS (MARCH 28, 2003) Page 19 of 25
Total
For the Three Months Ended Golden North
December 31, 2002 Nevada Mesquite La Herradura Giant Holloway America
Costs applicable to sales under GAAP..... $161.5 $2.1 $2.8 $16.0 $6.4 $188.8
Minority interest ....................... -- -- -- -- -- --
Reclamation and other .................. (2.3) -- -- (0.5) (0.2) (3.0)
Non-cash inventory adjustment .......... -- -- -- -- -- --
Other .................................. -- -- -- -- -- --
Total cash cost for per ounce
calculation .......................... 159.2 2.1 2.8 15.5 6.2 185.8
Reclamation and other .................. 2.3 -- -- 0.5 0.2 3.0
Depreciation, depletion and amortization 33.4 1.5 0.7 6.2 2.5 44.3
Minority interest and other ............ -- -- -- -- -- --
Total production cost for per ounce
calculation .......................... $194.9 $3.6 $3.5 $22.2 $8.9 $233.1
Equity ounces sold (000) ............... 796.4 12.8 15.7 80.3 26.7 931.9
Equity cash cost per ounce sold ........ $200 $167 $172 $194 $233 $199
Equity production cost per ounce sold .. $245 $286 $222 $277 $331 $250
Total
For the Three Months Ended South
December 31, 2002 Yanacocha Kori Kollo America Pajingo Kalgoorlie Yandal
Costs applicable to sales under GAAP ... $83.9 $11.7 $95.6 $9.7 $32.9 $39.0
Minority interest ..................... (42.4) (1.4) (43.8) -- -- --
Reclamation and other .................. (1.1) (0.7) (1.8) (0.4) (0.4) (0.9)
Non-cash inventory adjustment .......... -- -- -- (0.2) (11.4) 0.1
Other .................................. (0.9) -- (0.9) -- -- --
Total cash cost for per ounce
calculation .......................... 39.5 9.6 49.1 9.1 21.1 38.2
Reclamation and other .................. 1.1 0.7 1.8 0.5 11.8 0.8
Depreciation, depletion and amortization 35.7 3.4 39.1 2.8 2.9 15.1
Minority interest and other ............ (16.1) (0.4) (16.5) -- -- --
Total production cost for per ounce
calculation .......................... $60.2 $13.3 $73.5 $12.4 $35.8 $54.1
Equity ounces sold (000) ............... 353.8 57.5 411.3 87.8 103.7 187.3
Equity cash cost per ounce sold ........ $112 $165 $119 $104 $204 $205
Equity production cost per ounce sold .. $170 $231 $179 $142 $345 $289
For the Three Months Ended NFM Total Zarafshan,
December 31, 2002 Tanami Australia Uzbekistan Minahasa Martha Ovacik
Costs applicable to sales under GAAP..... $34.3 $115.9 $8.2 $10.9 $8.8 $5.6
Minority interest ..................... (4.9) (4.9) -- -- -- --
Reclamation and other .................. (0.9) (2.6) (0.1) (1.6) (0.3) (0.2)
Non-cash inventory adjustment .......... 0.3 (11.2) -- -- (1.6) (0.9)
Other .................................. -- -- -- (0.6) -- --
Total cash cost for per ounce
calculation .......................... 28.8 97.2 8.1 8.7 6.9 4.5
Reclamation and other .................. 0.4 13.5 0.1 1.6 1.8 1.0
Depreciation, depletion and amortization 8.8 29.6 2.3 1.2 4.2 4.2
Minority interest and other ............ (1.2) (1.2) -- (0.1) -- --
Total production cost for per ounce
calculation .......................... $36.8 $139.1 $10.5 $11.4 $12.9 $9.7
Equity ounces sold (000) ............... 133.9 512.7 61.8 33.1 33.5 41.1
Equity cash cost per ounce sold ........ $215 $190 $132 $259 $208 $108
Equity production cost per ounce sold .. $275 $272 $171 $342 $385 $237
Q4 and 2002 Results (March 28, 2003) Supplemental Information Page 20 of 25
Total
For the Three Months Ended Other Golden Other
December 31, 2002 Intenational Total Gold Grove Kasese Non-Gold Consolidated
Costs applicable to sales under GAAP..... $33.5 $433.8 $5.8 $-- $(2.1) $437.5
Minority interest ..................... -- (48.7) -- -- -- (48.7)
Reclamation and other .................. (2.2) (9.6) -- -- -- (9.6)
Non-cash inventory adjustment .......... (2.5) (13.7) -- -- -- (13.7)
Other .................................. (0.6) (1.5) (5.8) -- 2.1 (5.2)
Total cash cost for per ounce
calculation .......................... 28.2 360.3 -- -- -- 360.3
Reclamation and other .................. 4.5 22.8 (0.5) -- (2.6) 19.7
Depreciation, depletion and amortization 11.9 124.9 10.3 -- 11.0 146.2
Minority interest and other ............ (0.1) (17.8) (9.8) -- (8.4) (36.0)
Total production cost for per ounce
calculation .......................... $44.5 $490.2 $-- $-- $-- $490.2
Equity ounces sold (000) ............... 169.5 2,025.4 n/a n/a n/a 2,025.4
Equity cash cost per ounce sold ........ $166 $178 n/a n/a n/a $178
Equity production cost per ounce sold .. $262 $242 n/a n/a n/a $242
Q4 and 2002 Results (March 28, 2003) Supplemental Information Page 21 of 25
Total
For the Three Months Ended Golden North
December 31, 2001 Nevada Mesquite La Herradura Giant Holloway America
Costs applicable to sales under GAAP ... $159.9 $2.3 $2.6 $16.4 $4.4 $185.6
Minority interest ...................... -- -- -- -- -- --
Reclamation ............................ (3.2) -- -- (0.5) (0.1) (3.8)
Other .................................. -- -- -- -- -- --
Total cash cost for per ounce
calculation .......................... 156.7 2.3 2.6 15.9 4.3 181.8
Reclamation ............................ 3.2 -- -- 0.5 0.1 3.8
Depreciation, depletion and amortization 29.6 1.5 0.8 5.5 1.6 39.0
Minority interest and other ............ -- -- -- -- -- --
Total production cost for per ounce
calculation .......................... $189.5 $3.8 $3.4 $21.9 $6.0 $224.6
Equity ounces sold (000) ............... 716.6 12.4 13.8 87.5 25.0 855.3
Equity cash cost per ounce sold ........ $219` $185 $185 $182 $170 $213
Equity production cost per ounce sold .. $264 $302 $248 $251 $241 $263
Total
For the Three Months Ended South Zarafshan,
December 31, 2001 Yanacocha Kori Kollo America Pajingo Uzbekistan Minahasa
Costs applicable to sales under GAAP ... $62.3 $12.0 $74.3 $3.5 $8.1 $12.4
Minority interest ...................... (30.9) (1.4) (32.3) -- -- --
Reclamation ............................ (0.8) (0.4) (1.2) (0.1) -- (0.5)
Other .................................. -- -- -- -- -- --
Total cash cost for per ounce
calculation .......................... 30.6 10.2 40.8 3.4 8.1 11.9
Reclamation ............................ 0.8 0.4 1.2 0.1 -- 0.5
Depreciation, depletion and amortization 21.3 4.8 26.1 1.3 2.7 7.6
Minority interest and other ............ (9.6) (0.6) (10.2) -- -- --
Total production cost for per ounce
calculation .......................... $43.1 $14.8 $57.9 $4.8 $10.8 $20.0
Equity ounces sold (000) ............... 263.6 73.7 337.3 35.1 59.4 66.1
Equity cash cost per ounce sold ........ $116 $139 $121 $96 $136 $175
Equity production cost per ounce sold .. $164 $201 $172 $137 $181 $294
For the Three Months Ended Corporate
December 31, 2001 and Other Consolidated
Costs applicable to sales under GAAP ... $-- $283.9
Minority interest ...................... -- (32.3)
Reclamation ............................ -- (5.6)
Other .................................. -- --
Total cash cost for per ounce
calculation .......................... $-- $246.0
Reclamation ............................ -- 5.6
Depreciation, depletion and amortization 2.9 79.6
Minority interest and other ............ (2.9) (13.1)
Total production cost for per ounce
calculation .......................... $-- $318.1
Equity ounces sold (000) ............... n/a 1,353.2
Equity cash cost per ounce sold ........ n/a $182
Equity production cost per ounce sold .. n/a $235
Q4 and 2002 Results (March 28, 2003) Supplemental Information Page 22 of 25
7. Reconciliation of Batu Hijau Costs applicable to sales to net cash costs
per pound
For the year ended December 31 2002 2001
Costs applicable to sales per financial statements $107,355 $145,559
Refining 103,727 101,892
Minority interest (96,923) (112,970)
Reclamation (5,536) (1,773)
Other 2,448 --
----------------------------
Net cash cost for per pound calculation $111,071 $132,708
============================
Equity pounds sold (000) 362,253 359,955
Equity cash cost per pound sold $0.31 $0.37
For the three months ended December 31 2002 2001
Costs applicable to sales per financial statements $28,642 $35,693
Refining 26,230 24,787
Minority interest (25,160) (27,471)
Reclamation (2,658) (494)
Other 192 --
----------------------------
Net cash cost for per pound calculation $27,246 $32,515
============================
Equity pounds sold (000) 90,826 77,464
Equity net cash cost per pound sold $0.30 $0.42
Reconciliation of Golden Grove Costs applicable to sales to total copper
and zinc cash costs per pound
For the year ended December 31, 2002 Total Copper Zinc
Costs applicable to sales per financial statements $27,255 $18,114 $9,141
Refining 24,744 7,512 17,232
--------------------------------------
Total cash cost for per pound calculation $51,999 $25,626 $26,373
======================================
Total pounds sold (000) n/a 45,662 147,985
Equity cash cost per pound sold n/a $0.56 $0.18
For the three months ended December 31, 2002 Total Copper Zinc
Costs applicable to sales per financial statements $5,838 $3,741 $2,097
Refining 5,867 982 4,885
--------------------------------------
Total cash cost for per pound calculation $11,705 $4,723 $6,982
======================================
Total pounds sold (000) n/a 7,993 35,148
Equity cash cost per pound sold n/a $0.59 $0.20
Q4 and 2002 Results (March 28, 2003) Supplemental Information Page 23 of 25
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 (Q4)
- -------------- ------------ ------------ ------------ ------------
Oct 02 Nov 02 Dec 02 Q4 02
- -------------- ------------ ------------ ------------ ------------
High $26.88 $26.08 $29.98 $29.98
- -------------- ------------ ------------ ------------ ------------
Low $23.10 $23.10 $23.20 $23.10
- -------------- ------------ ------------ ------------ ------------
Last $24.72 $23.41 $29.03 $29.03
- -------------- ------------ ------------ ------------ ------------
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
Shareholder enquires:
Telephone: .......61-8-8232-0003
Facsimile:........61-8-8232-0072
Page 24 of 25
The company's fourth quarter and 2002 earnings conference call and web cast
presentation is scheduled for Friday, March 28, 2003 beginning at 11:00 a.m.
Eastern Standard Time (9:00 a.m. Mountain Standard Time).
To participate Dial-In Number: (773) 756-4806
Leader: Russell Ball
assword: 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 2002
Annual Report on Form 10-K, which is on file with the Securities and Exchange
Commission, as well as the company's other SEC filings. The company does not
undertake any obligation to release publicly 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.