NEWS RELEASE [Logo Omitted]
NEWMONT SELLS 5.3 MILLION EQUITY OUNCES OF GOLD IN 2007 AND EXPECTS COMPARABLE
GOLD SALES IN 2008
DENVER, February 7, 2008 - Newmont Mining Corporation (NYSE: NEM) today
announced 2007 operating and reserve results as well as the Company's operating
outlook for 2008. For the quarter ended December 31, 2007, the Company reported
equity gold sales of 1.4 million ounces at costs applicable to sales of $384 per
ounce. For the year ended December 31, 2007, the Company reported equity gold
sales of 5.3 million ounces at costs applicable to sales of $406 per ounce.
Consolidated capital expenditures for the quarter and year ended December 31,
2007 were $511 million and $1.7 billion, respectively, which were below the
Company's original outlook of $1.8 to $2.0 billion for 2007.
Richard O'Brien, President and Chief Executive Officer, said, "We are pleased
with our operating results from the fourth quarter, resulting in gold sales
performance consistent with our original expectations for the year. We expect
our 2008 gold sales performance to be comparable with our 2007 results, with
equity gold sales expected to be between 5.1 and 5.4 million ounces at costs
applicable to sales of between $425 and $450 per ounce. Building on our strong
operating performance from the third and fourth quarters of 2007, as well as the
momentum we established with the completion of our Miramar acquisition and the
sale of our royalty assets and certain other equity interests in December, we
have embarked on 2008 with a renewed focus on operational and project execution
as well as financial performance."
Operating Q4 2007 Q4 2006 YTD 2007 YTD 2006
- ----------------------- ---------- ---------- ---------- ----------
Consolidated gold sales 1,648 1,954 6,184 7,186
(000 ounces) (1)
Equity gold sales (000 1,405 1,715 5,321 5,870
ounces) (1), (2)
Costs applicable to $ 384 $ 324 $ 406 $ 303
sales ($/ounce) (3)
Capital expenditures $ 511 $ 440 $ 1,670 $ 1,537
($ million)
(1) Includes sales from start-up activities which are not included in Revenue,
Costs applicable to sales per ounce and Depreciation, depletion and
amortization per ounce calculations.
(2) Includes sales from discontinued operations.
(3) Excludes depreciation, depletion and amortization, loss on settlement of
price-capped forward sales contracts and Midas redevelopment costs.
2007 EXPLORATION AND RESERVE RESULTS
The Company reported year end 2007 proven and probable reserves of 86.5 million
equity ounces compared with 93.9 million equity ounces at the end of 2006. As
shown in the chart on the following page, during 2007 the Company added 4.2
million equity ounces of gold reserves due to margin changes and additional
drilling. The gold price basis for the Company's reserve calculations increased
to $575 per ounce in 2007 from $500 per ounce in 2006. Gold reserves were
revised down at Ahafo in Ghana by 2.4 million equity ounces due to increasing
operating and capital costs, by 0.8 million equity ounces at Nevada due to
geotechnical and metallurgical changes, as well as higher operating costs, and
by 0.2 million equity ounces at various locations due to operating cost
inflation. Gold reserves were also impacted by 0.9 million ounces as a result of
the previously announced reduction of the Company's economic ownership at Batu
Hijau in Indonesia and by the sale of Pajingo in Australia.
For 2007, the reserve additions from exploration of roughly 3.5 million equity
ounces were primarily due to further extension drilling at Boddington, Jundee
and Tanami in Australia, with 2.5 million equity ounces added to reserves in
2007, and the remaining additions coming from Batu Hijau, several open pit and
underground sites in Nevada, and La Herradura in Mexico.
NEWMONT - 2007 Operating and Reserve Results and 2008 Outlook
(February 7, 2008) Page 1 of 10
2007 Reserve Reconciliation(1)
[Bar Graph]
Ounces (million)
Actual 2006: 93.9
Margin Change: 0.7
Additions: 3.5
Depletion: 7.3
Divestments: 0.9
Revisions: 3.4
Actual 2007: 86.5
(1) For detailed information on the Company's year end reserves, please refer
to the Supplemental Information in this release.
For 2007, the Company's reserve grade remained relatively constant at 0.033
ounces per ton compared to 0.034 ounces per ton in 2006 in spite of downward
pressure on grade due to both higher metal prices and the average depletion
grade of 0.042 ounces per ton in 2007. The Company's reserves sensitivity to a
$25 change in the gold price between $575 and $650 per ounce, assuming costs
remain constant, is approximately 3.0 to 4.0 million equity ounces. The
Company's ability to project reserve sensitivities at significantly higher gold
prices is constrained by limited drill data.
Looking to 2008, greenfield exploration will focus on the South America, North
America and West Africa regions building on the encouraging results from these
areas in 2007, as well as further non-reserve mineralization (NRM) conversion at
Boddington. In South America, exploration will continue to focus on sulfide
targets at Yanacocha in Peru and on greenfields projects in the Andes of Peru
and the Guiana Shield, where the Company recently applied to the government of
Suriname for a Right of Exploitation for the Merian II and Maraba discoveries at
the Nassau joint venture. The Company expects to spend approximately $220 to
$230 million on exploration activities in 2008, including approximately $29
million at the recently acquired Hope Bay project in Nunavut, Canada.
Due to recent reserve replacement results, required changes to the Company's
valuation model assumptions, primarily the discount rate, reserve growth rate,
reserve finding costs, operating and capital costs, and new industry-developed
interpretation of the accounting rules for impairment analysis, the Company will
likely recognize a non-cash $1.1 billion Exploration Segment goodwill impairment
as part of continuing operations in the fourth quarter of 2007.
2008 OPERATING OUTLOOK
In 2008, the Company expects equity gold sales of between 5.1 and 5.4 million
ounces at costs applicable to sales of between $425 and $450 per ounce as
continued industry-wide operating cost pressures are expected to be compounded
by slightly lower gold grades. The Company continues to focus on cost mitigating
initiatives, including this year's anticipated completion of the power plant in
Nevada and commissioning of the gold mill at Yanacocha, as well as the
implementation of operational diagnostic and continuous improvement measures at
the Company's operations globally.
NEWMONT - 2007 Operating and Reserve Results and 2008 Outlook
(February 7, 2008) Page 2 of 10
The Company expects to realize cost savings in Nevada of approximately $25 per
ounce annually from its Nevada power plant investment that is expected to be
commissioned by mid-2008.
The Company's 2008 costs applicable to sales outlook is subject to impact by
changes to commodity prices and exchange rates. The Company's 2008 costs
applicable to sales outlook assumed an oil price of $80 per barrel and an
Australian dollar exchange rate of 0.875. During 2008, the Company anticipates
consuming approximately 3 million barrels of oil. Additionally, the Company
expects to spend approximately 20% of its total costs applicable to sales
denominated in Australian dollars.
The section below outlines the regional equity gold sales and costs applicable
to sales per ounce outlook for 2008.
Nevada, United States
Equity gold sales in Nevada are expected to remain relatively stable in 2008 at
approximately 2.27 to 2.40 million ounces, primarily due to increased leach
production at Twin Creeks as well as Leeville operating at designed capacity for
a complete year, offset by lower production from the closure of the Lone Tree
processing facility.
Costs applicable to sales in Nevada are expected to be slightly lower in 2008 at
approximately $400 to $430 per ounce, partially due to anticipated cost savings
of approximately $25 per ounce realized from the power plant and reduced milling
costs due to the closure of the Lone Tree processing facility. The Company
continues to address the operational challenges at Phoenix. The new crusher is
expected to be completed and operational in the second quarter of 2008, and the
new mine plan remains on schedule to be completed by mid-2008.
Yanacocha, Peru
Equity gold sales at Yanacocha are expected to increase slightly to between
885,000 and 925,000 ounces in 2008, primarily due to increased recoveries as the
gold mill begins to process higher-grade ore in the first half of 2008.
Costs applicable to sales at Yanacocha are expected to increase slightly in 2008
to between $370 and $390 per ounce, primarily due to a change in the mine
sequence that resulted in increased waste stripping as well as higher labor
costs from increased salaries and royalty payments.
Australia/New Zealand
Equity gold sales in Australia/New Zealand are expected to decrease to between
1.06 and 1.12 million ounces in 2008, as the impact of the Pajingo sale and
lower grades at Tanami are partially offset by higher throughput at Waihi in New
Zealand.
Costs applicable to sales are expected to increase in 2008 in Australia/New
Zealand to between $585 and $625 per ounce, primarily driven by slightly lower
production, increasing consumable costs, and the higher assumed Australian
dollar exchange rate. The Company has initiated an Australian dollar hedging
program to reduce exchange rate volatility in operating costs going forward.
Batu Hijau, Indonesia
Equity gold and copper sales at Batu Hijau are expected to decrease to between
150,000 and 165,000 ounces of gold and to between 155 and 165 million pounds of
copper in 2008, as mining shifts from the high grade bottom of the pit into a
lower grade mine sequence during 2008 and a portion of 2009. The planned
sequencing is expected to result in lower recoveries as lower grade stockpile
ore is fed to the mill.
Costs applicable to sales at Batu Hijau are expected to increase in 2008 to
between $285 and $325 per ounce of gold and to between $1.30 and $1.40 per pound
of copper, primarily driven by lower production and increased operating costs as
the number of truck operating hours are expected to increase during the year,
with associated increases in diesel, tires, and maintenance costs, offset by the
benefit of building stockpiles in the second half of 2008.
NEWMONT - 2007 Operating and Reserve Results and 2008 Outlook
(February 7, 2008) Page 3 of 10
Ahafo, Ghana
Equity gold sales at Ahafo are expected to increase to between 495,000 and
530,000 ounces in 2008, primarily due to higher grades and increased mill
throughput, offset by lower recoveries due to the metallurgical characteristics
of the ore processed in the mill.
Costs applicable to sales are expected to increase to between $485 and $520 per
ounce in 2008, primarily as a result of expected higher labor and contracted
service costs, as well as rising fuel and consumables prices and an increase in
the tariff on electricity.
2008 CONSOLIDATED CAPITAL OUTLOOK
The Company anticipates consolidated capital expenditures of between $1.8 and
$2.0 billion in 2008 (between $1.6 and $1.8 billion on an equity basis), with
approximately 50% invested in Australia/New Zealand, 25% in Nevada and the
remaining 25% at other locations. Approximately $0.9 to $1.0 billion of the 2008
capital is allocated to sustaining investments, with the remaining $0.9 to $1.0
billion allocated to project development initiatives, including the completion
of the Boddington project in Australia, the power plant in Nevada, and the gold
mill in Peru.
For 2008, consolidated capital expenditures in Nevada are expected to decrease
to between $350 and $400 million, with spending focused primarily on the
completion of the power plant, Phoenix crusher and other sustaining development.
Consolidated capital expenditures in South America are expected to decrease to
approximately $250 to $290 million in 2008 ($125 - $150 million on an equity
basis), primarily as a result of completing the gold mill during the first half
of 2008 and leach pad expansions. The Company continues to evaluate the optimal
development plan for Conga, with a development decision expected in 2008.
For 2008, consolidated capital expenditures in Australia/New Zealand are
expected to increase to approximately $800 to $850 million, primarily as a
result of increased spending on the Boddington project. The Company completed
its definitive estimate to update the Boddington capital costs and has revised
its expected share of total costs on the project to between $1.4 and $1.6
billion, up from $0.9 to $1.1 billion, primarily as a result of the adverse
impact of the Australian dollar exchange rate, design optimization, and labor
and commodity cost escalation. The Company continues to expect Boddington to
start up in late 2008 or early 2009.
Consolidated capital expenditures in 2008 at Batu Hijau are expected to increase
to between $145 and $195 million ($65 - $90 million on an equity basis) due to
increased sustaining capital and initial feasibility spending on the third SAG
mill expansion and pit dewatering infrastructure. Consolidated capital
expenditures in Ghana are expected to be approximately $150 to $155 million,
primarily related to spending on Ahafo expansion options as well as continued
development studies on Akyem, with a development decision expected in 2008.
For 2008, consolidated capital expenditures at the Hope Bay project in Nunavut
are expected to be approximately $30 million, primarily focused on development
phase enhancement of infrastructure.
NEWMONT - 2007 Operating and Reserve Results and 2008 Outlook
(February 7, 2008) Page 4 of 10
PROVEN AND PROBABLE GOLD RESERVES
Equity Proven, Probable, and Combined Gold Reserves(1)
December 31, 2007
- ------------------------------------------------------------------------------------------------------------------------------------
Deposits/Districts Proven Reserves Probable Reserves
-------------------------------- -------------------------------------------
Newmont Tonnage Grade Gold Tonnage Grade Gold
Share (000 tons) (oz/ton) (000 ozs) (000 tons) (oz/ton) (000 ozs)
- ------------------------------------------------------------------------------------------------------------------------------------
Nevada
Carlin Open Pit(2) 100% 17,700 0.065 1140 195,800 0.043 8,380
Carlin Underground 100% 1,500 0.318 490 5,700 0.407 2,330
Midas(3) 100% 600 0.539 340 400 0.428 190
Phoenix 100% 0 0 278,100 0.027 7,600
Twin Creeks 100% 4,200 0.072 300 47,900 0.079 3,780
Turquoise Ridge(4) 25% 2,100 0.477 990 700 0.402 290
Nevada In-Process(5) 100% 40,200 0.026 1060 0 0
Nevada Stockpiles(6) 100% 30,900 0.079 2440 1,500 0.030 40
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL NEVADA 97,200 0.070 6760 530,100 0.043 22,610
- ------------------------------------------------------------------------------------------------------------------------------------
Yanacocha, Peru
Conga (Minas Conga)(7) 51.35% 0 0 317,200 0.019 6,080
Yanacocha Open Pits(8) 51.35% 26,400 0.023 600 229,200 0.030 6,940
Yanacocha In-Process(5) 51.35% 20,700 0.027 560 0 0
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL YANACOCHA 47,100 0.025 1,160 546,400 0.024 13,020
- ------------------------------------------------------------------------------------------------------------------------------------
Australia/New Zealand
Boddington, Western Australia(9) 66.67% 124,900 0.026 3,240 352,000 0.022 7,850
Jundee, Western Australia 100% 3,000 0.148 450 3,700 0.283 1,040
Kalgoorlie Open Pits and Underground 50% 32,500 0.061 1,980 33,600 0.065 2,190
Kalgoorlie Stockpiles(6) 50% 13,500 0.031 420 0 0
Total Kalgoorlie, Western Australia 50% 46,000 0.052 2,400 33,600 0.065 2,190
Waihi, New Zealand 100% 3,800 0.131 500
Pajingo, Queensland(10) 100% 0 0 0 0
Tanami Underground and Open Pits 100% 6,200 0.144 890 5,200 0.138 710
Tanami Stockpiles(6) 100% 400 0.081 30 1,500 0.036 60
Total Tanami, Northern Territories 100% 6,600 0.140 920 6,700 0.115 770
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL AUSTRALIA/NEW ZEALAND 180,500 0.039 7,010 399,800 0.031 12,350
- ------------------------------------------------------------------------------------------------------------------------------------
Batu Hijau(11) 45% 132,700 0.013 1,780 246,200 0.008 2,050
Batu Hijau Stockpiles(6)(11) 45% 0 0 114,300 0.004 410
Total Batu Hijau 45% 132,700 0.013 1,780 360,500 0.007 2,460
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL BATU HIJAU 132,700 0.013 1,780 360,500 0.007 2,460
- ------------------------------------------------------------------------------------------------------------------------------------
Ghana, West Africa
Ahafo(12) 100% 0 0 124,000 0.078 9,720
Akyem(13) 100% 0 0 147,200 0.052 7,660
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL GHANA 0 0 271,200 0.064 17,380
- ------------------------------------------------------------------------------------------------------------------------------------
Other Operations
Kori Kollo, Bolivia 88% 7,800 0.018 140 17,400 0.016 280
La Herradura, Mexico 44% 32,600 0.023 760 35,100 0.023 820
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL OTHER OPERATIONS 40,400 0.022 900 52,500 0.021 1,100
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL NEWMONT WORLDWIDE 497,900 0.035 17,610 2,160,500 0.032 68,920
- ------------------------------------------------------------------------------------------------------------------------------------
December 31, 2007 December 31, 2006
- --------------------------------------------------------------------------------------------- -------------------------------------
Deposits/Districts Proven and Probable Reserves Metallurgical Proven + Probable Reserves
---------------------------------- ------------- -------------------------------------
Tonnage Grade Gold Recovery Tonnage Grade Gold
000 tons) (oz/ton) (000 ozs) (000 tons) (oz/ton) (000 ozs)
- ------------------------------------------------------------------------------------------------------------------------------------
Nevada
Carlin Open Pit(2) 213,500 0.045 9,520 71% 271,600 0.042 11,530
Carlin Underground 7,200 0.388 2,820 94% 7,400 0.441 3,260
Midas(3) 1,000 0.493 530 95% 1,200 0.467 550
Phoenix 278,100 0.027 7,600 75% 295,200 0.027 8,080
Twin Creeks 52,100 0.078 4,080 80% 64,800 0.077 4,980
Turquoise Ridge(4) 2,800 0.458 1,280 92% 2,100 0.544 1,150
Nevada In-Process(5) 40,200 0.026 1,060 66% 45,600 0.024 1,120
Nevada Stockpiles(6) 32,400 0.077 2,480 77% 31,600 0.077 2,440
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL NEVADA 627,300 0.047 29,370 77% 719,500 0.046 33,110
- ------------------------------------------------------------------------------------------------------------------------------------
Yanacocha, Peru
Conga (Minas Conga)(7) 317,200 0.019 6,080 79% 317,200 0.019 6,080
Yanacocha Open Pits(8) 255,600 0.029 7,540 69% 277,800 0.030 8,310
Yanacocha In-Process(5) 20,700 0.027 560 76% 24,000 0.028 670
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL YANACOCHA 593,500 0.024 14,180 74% 619,000 0.024 15,060
- ------------------------------------------------------------------------------------------------------------------------------------
Australia/New Zealand
Boddington, Western Australia(9) 476,900 0.023 11,090 82% 377,700 0.024 9,090
Jundee, Western Australia 6,700 0.222 1,490 91% 6,900 0.213 1,480
Kalgoorlie Open Pits and Underground 66,100 0.063 4,170 86% 74,600 0.063 4,670
Kalgoorlie Stockpiles(6) 13,500 0.031 420 79% 13,100 0.032 420
Total Kalgoorlie, Western Australia 79,600 0.058 4,590 85% 87,700 0.058 5,090
Waihi, New Zealand 3,800 0.131 500 89% 4,100 0.137 560
Pajingo, Queensland(10) 0 0 1,300 0.233 300
Tanami Underground and Open Pits 11,400 0.141 1,600 95% 12,200 0.152 1,860
Tanami Stockpiles(6) 1,900 0.045 90 95% 3,000 0.039 120
Total Tanami, Northern Territories 13,300 0.127 1,690 95% 15,200 0.130 1,980
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL AUSTRALIA/NEW ZEALAND 580,300 0.033 19,360 85% 492,900 0.038 18,500
- ------------------------------------------------------------------------------------------------------------------------------------
Batu Hijau(11) 378,900 0.010 3,830 77% 372,200 0.012 4,500
Batu Hijau Stockpiles(6)(11) 114,300 0.004 410 64% 145,800 0.004 540
Total Batu Hijau 493,200 0.009 4,240 76% 518,000 0.010 5,040
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL BATU HIJAU 493,200 0.009 4,240 76% 518,000 0.010 5,040
- ------------------------------------------------------------------------------------------------------------------------------------
Ghana, West Africa
Ahafo(12) 124,000 0.078 9,720 87% 163,800 0.078 12,620
Akyem(13) 147,200 0.052 7,660 89% 147,200 0.052 7,660
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL GHANA 271,200 0.064 17,380 88% 311,000 0.065 20,280
- ------------------------------------------------------------------------------------------------------------------------------------
Other Operations
Kori Kollo, Bolivia 25,200 0.017 420 59% 41,800 0.011 470
La Herradura, Mexico 67,700 0.023 1,580 66% 64,500 0.022 1,390
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL OTHER OPERATIONS 92,900 0.022 2,000 65% 106,300 0.017 1,860
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL NEWMONT WORLDWIDE 2,658,400 0.033 86,530 80% 2,766,700 0.034 93,850
- ------------------------------------------------------------------------------------------------------------------------------------
(1) 2007 reserves were calculated at a gold price of US$575, A$750, or NZ$850
per ounce unless otherwise noted. 2006 reserves were calculated at a gold
price of US$500, A$675, or NZ$750 per ounce unless otherwise noted.
Tonnages have been rounded to the nearest 100,000. Ounces have been
rounded to the nearest 10,000.
(2) Includes undeveloped reserves at Castle Reef, North Lantern and Emigrant
deposits for combined total undeveloped reserves of 1.5 million ounces.
(3) Also contains reserves of 7.5 million ounces of silver with a
metallurgical recovery of 88%.
(4) Reserve estimates provided by Barrick Gold Corp. ("Barrick"), the operator
of the Turquoise Ridge Joint Venture. Barrick estimated 2007 reserves
using a gold price of US$575 per ounce.
(5) In-process material is the material on leach pads at the end of each year
from which gold remains to be recovered. In-process material reserves are
reported separately where tonnage or contained ounces are greater than 5%
of the total site-reported reserves and contained ounces are greater than
100,000.
(6) Stockpiles are comprised primarily of material that has been set aside to
allow processing of higher grade material in the mills. Stockpiles
increase or decrease depending on current mine plans. Stockpile reserves
are reported separately where tonnage or contained ounces are greater than
5% of the total site-reported reserves and contained ounces are greater
than 100,000.
(7) Deposit is currently undeveloped.
(8) Reserves include the currently undeveloped deposit at Corimayo, which
contains reserves of 2.5 million equity ounces.
(9) Deposit is currently being developed. Production is expected to begin in
2009.
(10) Pajingo assets were sold in 2007.
(11) Percentage reflects Newmont's ownership at December 31, 2007. On May 25,
2007, the minority owner of the Batu Hijau mine fully repaid a loan from a
Newmont subsidiary. As a result of the loan repayment, Newmont's economic
interest was reduced from 52.875% to 45%.
(12) Includes undeveloped reserves at Awonsu, Amoma, Yamfo South, Yamfo
Central, Techire West, Subenso South, Subenso North, Yamfo Northeast, and
Susuan totaling 5.3 million ounces.
(13) Deposit is undeveloped.
NEWMONT - 2007 Operating and Reserve Results and 2008 Outlook
(February 7, 2008) Page 5 of 10
GOLD NON-RESERVE MINERALIZATION
Equity Gold Mineralized Material Not in Reserves(1)(2)
December 31, 2007
- -------------------------------------------------------------------------------------------------------------------------
Deposits/Districts Measured Indicated Measured + Indicated
Material Material Material
--------------------- --------------------- ------------------------
Newmont Tonnage Grade Tonnage Grade Tonnage Grade
Share (000 tons) (oz/ton) (000 tons) (oz/ton) (000 tons) (oz/ton)
- -------------------------------------------------------------------------------------------------------------------------
Nevada
Carlin Trend Open Pit 100% 1,000 0.028 13,600 0.020 14,600 0.020
Carlin Trend Underground 100% 100 0.479 10 0.539 110 0.482
Lone Tree Complex 100% 4,200 0.022 0 4,200 0.022
Midas 100% 100 0.384 100 0.267 200 0.345
Phoenix 100% 0 0.000 92,800 0.017 92,800 0.017
Twin Creeks 100% 1,000 0.112 20,000 0.061 21,000 0.063
Turquoise Ridge (3) 25% 600 0.407 200 0.415 800 0.409
Nevada Stockpiles (4) 100% 7,700 0.059 7,700 0.059
- -------------------------------------------------------------------------------------------------------------------------
TOTAL NEVADA 14,700 0.070 126,710 0.025 141,410 0.030
- -------------------------------------------------------------------------------------------------------------------------
Yanacocha, Peru
Conga 51.35% 0 58,000 0.013 58,000 0.013
La Zanja(5) 46.9% 0 18,000 0.021 18,000 0.021
Yanacocha 51.35% 1,300 0.011 95,400 0.025 96,700 0.024
- -------------------------------------------------------------------------------------------------------------------------
TOTAL YANACOCHA 1,300 0.011 171,400 0.020 172,700 0.020
- -------------------------------------------------------------------------------------------------------------------------
Australia/New Zealand
Boddington, Western Australia 66.67% 13,200 0.013 179,500 0.016 192,700 0.016
Jundee, Western Australia 100% 40 0.156 2,900 0.033 2,940 0.034
Kalgoorlie, Western Australia 50% 1,200 0.059 400 0.062 1,600 0.060
Waihi, New Zealand 100% 0 1,300 0.184 1,300 0.184
Pajingo, Queensland(6) 100% 0 0 0
Tanami, Northern Territory 100% 0 900 0.067 900 0.067
- -------------------------------------------------------------------------------------------------------------------------
TOTAL AUSTRALIA/NEW ZEALAND 14,440 0.017 185,000 0.018 199,440 0.018
- -------------------------------------------------------------------------------------------------------------------------
Batu Hijau, Indonesia
Batu Hijau (7) 45% 2,900 0.002 20,100 0.001 23,000 0.001
- -------------------------------------------------------------------------------------------------------------------------
TOTAL BATU HIJAU 2,900 0.002 20,100 0.001 23,000 0.001
- -------------------------------------------------------------------------------------------------------------------------
Ghana, West Africa
Ahafo 100% 0 42,100 0.069 42,100 0.069
Akyem 100% 0 11,600 0.048 11,600 0.048
- -------------------------------------------------------------------------------------------------------------------------
TOTAL AFRICA 0 53,700 0.064 53,700 0.064
- -------------------------------------------------------------------------------------------------------------------------
Other Operations and Projects
Kori Kollo, Bolivia 88% 0 0.000 12,200 0.017 12,200 0.017
La Herradura, Mexico 44% 3,700 0.021 7,900 0.021 11,600 0.021
- -------------------------------------------------------------------------------------------------------------------------
TOTAL OTHER OPERATIONS AND PROJECTS 3,700 0.021 20,100 0.019 23,800 0.019
- -------------------------------------------------------------------------------------------------------------------------
TOTAL NEWMONT WORLDWIDE 37,040 0.037 577,010 0.024 614,050 0.025
- -------------------------------------------------------------------------------------------------------------------------
December 31, 2007
- -----------------------------------------------------------
Deposits/Districts Inferred
Material
---------------------
Tonnage Grade
(000 tons) (oz/ton)
- -----------------------------------------------------------
Nevada
Carlin Trend Open Pit 3,700 0.037
Carlin Trend Underground 2,600 0.480
Lone Tree Complex 0
Midas 100 0.301
Phoenix 22,900 0.022
Twin Creeks 2,600 0.030
Turquoise Ridge (3) 500 0.440
Nevada Stockpiles (4)
- -----------------------------------------------------------
TOTAL NEVADA 32,400 0.066
- -----------------------------------------------------------
Yanacocha, Peru
Conga 79,000 0.011
La Zanja(5) 0
Yanacocha 29,900 0.018
- -----------------------------------------------------------
TOTAL YANACOCHA 108,900 0.013
- -----------------------------------------------------------
Australia/New Zealand
Boddington, Western Australia 139,900 0.018
Jundee, Western Australia 1,000 0.345
Kalgoorlie, Western Australia 1,600 0.146
Waihi, New Zealand 3,000 0.109
Pajingo, Queensland(6) 0
Tanami, Northern Territory 11,300 0.188
- -----------------------------------------------------------
TOTAL AUSTRALIA/NEW ZEALAND 156,800 0.035
- -----------------------------------------------------------
Batu Hijau, Indonesia
Batu Hijau (7) 16,200 0.002
- -----------------------------------------------------------
TOTAL BATU HIJAU 16,200 0.002
- -----------------------------------------------------------
Ghana, West Africa
Ahafo 9,700 0.082
Akyem 4,600 0.047
- -----------------------------------------------------------
TOTAL AFRICA 14,300 0.071
- -----------------------------------------------------------
Other Operations and Projects
Kori Kollo, Bolivia 0 0.000
La Herradura, Mexico 18,000 0.021
- -----------------------------------------------------------
TOTAL OTHER OPERATIONS AND PROJECTS 18,000 0.021
- -----------------------------------------------------------
TOTAL NEWMONT WORLDWIDE 346,600 0.031
- -----------------------------------------------------------
(1) Mineralized material is reported exclusive of reserves.
(2) 2007 mineralized material was calculated at a gold price of US$625, A$800,
or NZ$950 per ounce unless otherwise noted. 2006 mineralized material was
calculated at a gold price of US$550, A$725, or NZ$850 per ounce. Tonnages
have been rounded to the neare
(3) Mineralized material estimates were provided by Barrick, the operator of
the Turquoise Ridge Joint Venture. Barrick calculated mineralized material
not in reserves assuming a gold price of US$650 per ounce.
(4) Stockpiles are comprised primarily of material that has been set aside to
allow processing of higher grade material in the mills. Stockpiles
increase or decrease depending on current mine plans.
(5) Mineralized material estimates were provided by Buenaventura, the operator
of the La Zanja Project. Buenaventura calculated mineralized material at a
gold price of US$525 per ounce.
(6) Pajingo assets were sold in 2007.
(7) Percentage reflects Newmont's ownership at December 31, 2007. On May 25,
2007, the minority owner of the Batu Hijau mine fully repaid a loan from a
Newmont subsidiary. As a result of the loan repayment, Newmont's economic
interest was reduced from 52.87
NEWMONT - 2007 Operating and Reserve Results and 2008 Outlook
(February 7, 2008) Page 6 of 10
COPPER PROVEN AND PROBABLE RESERVES
Equity Copper Reserves(1)
December 31, 2007
- ------------------------------------------------------------------------------------------------------------------------------------
Deposits/Districts Proven Reserves Probable Reserves
--------------------------------------- --------------------------------------------
Newmont Tonnage Grade Copper Tonnage Grade Copper
Share (000 tons) (Cu%) (million pounds) (000 tons) (Cu%) (million pounds)
- ------------------------------------------------------------------------------------------------------------------------------------
Batu Hijau(2) 45% 132,700 0.50% 1,330 246,200 0.40% 1,970
Batu Hijau, Stockpiles(2)(3) 45% 0 0 114,300 0.36% 820
Total Batu Hijau, Indonesia 45% 132,700 0.50% 1,330 360,500 0.39% 2,790
Boddington, Western Australia(4) 66.67% 124,900 0.11% 280 351,600 0.11% 750
Conga, Peru(5) 51.35% 0 0 317,200 0.26% 1,660
Phoenix, Nevada 100% 0 0 279,600 0.13% 740
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL NEWMONT WORLDWIDE 257,600 0.31% 1,610 1,308,900 0.23% 5,940
- ------------------------------------------------------------------------------------------------------------------------------------
December 31, 2007 December 31, 2006
- ------------------------------------------------------------------------------------------ ---------------------------------------
Deposits/Districts Proven + Probable Reserves Proven + Probable Reserve
------------------------------------- ---------------------------------------
Tonnage Grade Copper Metallurgical Tonnage Grade Copper
(000 tons) (Cu%) (million pounds) Recovery (000 tons) (Cu%) (million pounds)
- ------------------------------------------------------------------------------------------------------------------------------------
Batu Hijau(2) 378,900 0.43% 3,300 79% 372,100 0.49% 3,650
Batu Hijau, Stockpiles(2)(3) 114,300 0.36% 820 64% 145,800 0.37% 1,070
Total Batu Hijau, Indonesia 493,200 0.42% 4,120 76% 517,900 0.46% 4,720
Boddington, Western Australia(4) 476,500 0.11% 1,030 83% 377,400 0.11% 840
Conga, Peru(5) 317,200 0.26% 1,660 85% 317,200 0.26% 1,660
Phoenix, Nevada 279,600 0.13% 740 66% 296,600 0.13% 770
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL NEWMONT WORLDWIDE 1,566,500 0.24% 7,550 78% 1,509,100 0.26% 7,990
- ------------------------------------------------------------------------------------------------------------------------------------
(1) 2007 reserves were calculated at US$1.75 or A$2.00 per pound copper price
unless otherwise noted. 2006 reserves were calculated at US$1.25 or A$1.70
per pound copper price unless otherwise noted. Tonnages have been rounded
to the nearest 100,000. Pound
(2) Percentage reflects Newmont's ownership at December 31, 2007. On May 25,
2007, the minority owner of the Batu Hijau mine fully repaid a loan from a
Newmont subsidiary. As a result of the loan repayment, Newmont's economic
interest was reduced from 52.87
(3) Stockpiles are comprised primarily of material that has been set aside to
allow processing of higher grade material in the mills. Stockpiles
increase or decrease depending on current mine plans. Stockpiles are
reported separately where tonnage or contained metal are greater than 5%
of the total site reported reserves.
(4) Deposit currently being developed.
(5) Deposit is undeveloped.
COPPER NON-RESERVE MINERALIZATION
Equity Copper Mineralized Material Not in Reserves(1)(2)
December 31, 2007
- ------------------------------------------------------------------------------------------------------------------------------------
Deposits/Districts Measured Indicated Measured + Indicated Inferred
Material Material Material Material
------------------ ------------------ -------------------- -------------------
Newmont Tonnage Grade Tonnage Grade Tonnage Grade Tonnage Grade
Share (000 tons) (Cu%) (000 tons) (Cu%) (000 tons) (Cu%) (000 tons) (Cu%)
- ------------------------------------------------------------------------------------------------------------------------------------
Batu Hijau, Indonesia (3) 45% 2,900 0.19% 20,100 0.19% 23,000 0.19% 16,200 0.24%
Boddington, Western Australia 66.67% 13,200 0.08% 179,500 0.10% 192,700 0.10% 139,900 0.10%
Conga, Peru 51.35% 0 0.00% 58,000 0.18% 58,000 0.18% 79,000 0.17%
Phoenix, Nevada 100% 0 0.00% 91,300 0.16% 91,300 0.16% 23,900 0.16%
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL NEWMONT WORLDWIDE 16,100 0.10% 348,900 0.13% 365,000 0.13% 259,000 0.14%
- ------------------------------------------------------------------------------------------------------------------------------------
(1) Mineralized material is reported exclusive of reserves.
(2) 2007 mineralized material was calculated at a copper price of US$2.00 or
A$2.50 per pound unless otherwise noted. 2006 mineralized material was
calculated at a copper price of US$1.50 or A$2.00 per pound. Tonnages have
been rounded to the nearest 100,00
(3) Percentage reflects Newmont's ownership at December 31, 2007. On May 25,
2007, the minority owner of the Batu Hijau mine fully repaid a loan from a
Newmont subsidiary. As a result of the loan repayment, Newmont's economic
interest was reduced from 52.87
NEWMONT - 2007 Operating and Reserve Results and 2008 Outlook
(February 7, 2008) Page 7 of 10
PRODUCTION STATISTICS SUMMARY
Q4 2007 Q4 2006 2007 2006
-------- -------- -------- --------
Gold
Consolidated ounces sold (000):
Nevada (1) 667 887 2,341 2,534
Yanacocha 438 439 1,565 2,572
Batu Hijau 120 169 494 435
Australia/New Zealand
Tanami 103 116 439 418
Kalgoorlie 74 76 323 332
Jundee 87 77 298 306
Pajingo -- -- -- --
Waihi 31 20 93 120
-------- -------- -------- --------
295 289 1,153 1,176
-------- -------- -------- --------
Ahafo 85 125 446 202
Other
Kori Kollo 21 26 87 129
La Herradura 22 18 86 79
Golden Giant -- 1 12 59
-------- -------- -------- --------
43 45 185 267
-------- -------- -------- --------
1,648 1,954 6,184 7,186
======== ======== ======== ========
Equity ounces sold (000):
Nevada (1) 667 887 2,341 2,427
Yanacocha 224 225 803 1,320
Batu Hijau 54 89 233 230
Australia/New Zealand
Tanami 103 116 439 418
Kalgoorlie 74 76 323 332
Jundee 87 77 298 306
Waihi 31 20 93 120
-------- -------- -------- --------
295 289 1,153 1,176
-------- -------- -------- --------
Ahafo 85 125 446 202
Other
Kori Kollo 18 23 76 114
La Herradura 22 18 86 79
Golden Giant -- 1 12 59
-------- -------- -------- --------
40 42 174 252
-------- -------- -------- --------
1,365 1,657 5,150 5,607
Discontinued Operations
Pajingo 40 58 171 175
Zarafshan -- -- -- 62
Holloway -- -- -- 26
-------- -------- -------- --------
1,405 1,715 5,321 5,870
======== ======== ======== ========
Copper
Batu Hijau (pounds sold in millions):
Consolidated 76 147 428 435
Equity 34 78 204 230
(1) Includes sales from start-up activities which are not included in Revenue,
Costs applicable to sales and Depreciation, depletion and amortization per
ounce calculations.
NEWMONT - 2007 Operating and Reserve Results and 2008 Outlook
(February 7, 2008) Page 8 of 10
COSTS APPLICABLE TO SALES AND CAPITAL EXPENDITURES STATISTICS SUMMARY
Q4 2007 Q4 2006 2007 2006
-------- -------- -------- --------
Gold
Costs Applicable to Sales ($/ounce) (1)
Nevada $ 385 $ 363 $ 444 $ 403
Yanacocha $ 315 $ 244 $ 345 $ 193
Batu Hijau $ 354 $ 192 $ 243 $ 209
Australia/New Zealand
Tanami $ 445 $ 360 $ 425 $ 370
Kalgoorlie $ 673 $ 539 $ 605 $ 490
Jundee $ 416 $ 374 $ 480 $ 369
Waihi $ 445 $ 343 $ 502 $ 223
-------- -------- -------- --------
$ 494 $ 409 $ 496 $ 389
-------- -------- -------- --------
Ahafo $ 416 $ 326 $ 396 $ 297
Other
Kori Kollo $ 249 $ 301 $ 340 $ 210
La Herradura $ 421 $ 254 $ 341 $ 248
Golden Giant $ -- $ 49 $ 205 $ 214
-------- -------- -------- --------
$ 338 $ 272 $ 332 $ 222
-------- -------- -------- --------
Newmont $ 384 $ 324 $ 406 $ 303
======== ======== ======== ========
Copper
Costs Applicable to Sales ($/pound)
Batu Hijau $ 1.29 $ 0.64 $ 1.10 $ 0.71
Q4 2007 Q4 2006 2007 2006
-------- -------- -------- --------
Capital expenditures ($ million):
Nevada 135 204 588 705
South America 72 95 253 269
Batu Hijau 31 9 74 106
Australia/New Zealand 229 84 597 192
Ghana 40 34 134 234
Corporate and Other 4 14 24 31
-------- -------- -------- --------
Total capital expenditures $ 511 $ 440 $ 1,670 $ 1,537
======== ======== ======== ========
(1) Excludes depreciation, depletion and amortization, loss on settlement of
price-capped forward sales contracts and Midas redevelopment costs.
NEWMONT - 2007 Operating and Reserve Results and 2008 Outlook
(February 7, 2008) Page 9 of 10
The Company's 2008 Analyst Day and live web cast presentation will be held on
February 8, 2008, beginning at 10:00 a.m. Eastern Time (8:00 a.m. Mountain
Time). The 2008 Analyst Day will be simultaneously carried on our web site at
www.newmont.com under Investor Information/Presentations and will be archived
there for a limited time.
The Company will release complete financial results for the fourth quarter and
year ended December 31, 2007 on Thursday, February 21, 2008. A conference call
to discuss the financial results will be held on February 21, 2008 at 4:00 p.m.
Eastern Time (2:00 p.m. Mountain Time). To participate:
Dial-In Number: 210-234-0000
Leader: John Seaberg
Password: Newmont
Replay Number: 203-369-0752
The conference call will be simultaneously carried on our web site at
www.newmont.com 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 Section 21E of the
Securities Exchange Act of 1934, as amended that are intended to be covered by
the safe harbor created by such sections. Such forward-looking statements
include, without limitation, (i) estimates of future gold and copper production
and sales; (ii) estimates of future costs applicable to sales; (iii) estimates
of future capital expenditures, project costs, and expenses; (iv) estimates
regarding timing of future development, construction, production or closure
activities; (v) statements regarding future exploration results, exploration
expenditures, and reserves and (vi) statements regarding potential cost savings,
productivity, operating performance, cost structure and competitive 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, 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 2006 Annual Report
on Form 10-K, filed February 26, 2007, which is on file with the Securities and
Exchange Commission, as well as the Company's other SEC filings. The Company
does not undertake any obligation to release publicly revisions to any
"forward-looking statement," to reflect events or circumstances after the date
of this news release, or to reflect the occurrence of unanticipated events,
except as may be required under applicable securities laws.
NEWMONT - 2007 Operating and Reserve Results and 2008 Outlook
(February 7, 2008) Page 10 of 10