News Release [GRAPHIC OMITTED]
NEWMONT REPORTS FOURTH QUARTER AND 2007 FINANCIAL AND OPERATING RESULTS
DENVER, February 21, 2008 - Newmont Mining Corporation (NYSE: NEM) today
announced fourth quarter and 2007 financial and operating results. For the
quarter and year ended December 31, the Company reported a net loss from
continuing operations of $933 million (-$2.06 per share) and $963 million
(-$2.13 per share), respectively, in 2007, compared with net income from
continuing operations of $171 million ($0.38 per share) and $563 million ($1.25
per share), respectively, in 2006. Including discontinued operations, the
Company reported a net loss of $289 million (-$0.63 per share) and $1.9 billion
(-$4.17 per share), for the quarter and year ended December 31, 2007,
respectively, compared with net income of $223 million ($0.50 per share) and
$791 million ($1.76 per share) for the quarter and year ended December 31, 2006.
Net income was impacted by the following:
- ----------------------------------------------------------------------------------------------
Description ($ million, after-tax) Q4 2007 Q4 2006 2007 2006
- ----------------------------------------------------------------------------------------------
Continuing operations:
Write-down of Exploration goodwill $(1,122) $ -- $(1,122) $ --
Loss on settlement of gold contracts $ -- $ -- $ (358) $ (23)
Write-down of marketable securities $ (39) $ -- $ (39) $ --
Batu Hijau minority loan repayment $ -- $ -- $ (25) $ --
Tax estimate revisions $ -- $ 44 $ -- $ 35
Discontinued operations:
Gain on sale of royalty portfolio and other assets $ 597 $ -- $ 597 $ --
Write-down of Merchant Banking goodwill $ -- $ -- $(1,665) $ --
Zarafshan expropriation settlement (impairment) $ 6 $ -- $ 60 $ (71)
Gain on sale of Alberta oil sands $ -- $ -- $ -- $ 173
Other discontinued operations and asset sales $ 41 $ 52 $ 85 $ 126
- ----------------------------------------------------------------------------------------------
Richard O'Brien, President and Chief Executive Officer, said, "Our operating
results in each of our regions continue to improve, with fourth quarter and 2007
performance reflecting our focus on execution and in line with guidance. As we
look to 2008 and beyond, we will maintain the momentum established in 2007 by
further improving our operating performance through production, cost and capital
execution in line with our plans. We will also focus on completing the
construction of Boddington in Australia, the Yanacocha gold mill in Peru, and
the Nevada power plant, while aggressively exploring at our recently acquired
Hope Bay project in Canada."
- --------------------------------------------------------------------------------------------------
Financial ($ million, except per share) Q4 2007 Q4 2006 2007 2006
- --------------------------------------------------------------------------------------------------
Revenues $ 1,410 $ 1,424 $ 5,526 $ 4,882
(Loss) income from continuing operations $ (933) $ 171 $ (963) $ 563
(Loss) income from continuing operations per share $ (2.06) $ 0.38 $ (2.13) $ 1.25
Net (loss) income $ (289) $ 223 $(1,886) $ 791
Net (loss) income per share $ (0.63) $ 0.50 $ (4.17) $ 1.76
- --------------------------------------------------------------------------------------------------
Operating Q4 2007 Q4 2006 2007 2006
- --------------------------------------------------------------------------------------------------
Consolidated gold sales (000 ounces) (1) 1,648 1,954 6,184 7,186
Equity gold sales (000 ounces) (1), (2) 1,405 1,715 5,321 5,870
Average realized gold price ($/ounce) $ 785 $ 612 $ 697 $ 594
Costs applicable to sales ($/ounce) ((3)) $ 384 $ 324 $ 406 $ 303
Net cash provided from continuing operations ($ million) $ 631 $ 403 $ 525 $ 1,129
Capital expenditures ($ million) $ 511 $ 440 $ 1,670 $ 1,537
- --------------------------------------------------------------------------------------------------
(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.
(2) Includes sales from discontinued operations.
(3) Excludes depreciation, depletion and amortization, loss on settlement of
price-capped forward sales contracts and Midas redevelopment.
NEWMONT - Fourth Quarter and 2007 Financial and Operating Results (February 21,
2008)
Page 1 of 20
The Company generated net cash from continuing operations of $631 million in the
fourth quarter of 2007 compared to $403 million in the year ago quarter. The
Company generated net cash from continuing operations of $525 million in 2007,
compared to $1.1 billion in 2006. Cash flow from continuing operations during
2007 was negatively impacted by the settlement of the price-capped forward sales
contracts ($578 million), the settlement of pre-acquisition income taxes of
Normandy ($276 million) and the final settlement of copper collar contracts
($174 million).
During the fourth quarter of 2007, the Company recognized a $1.1 billion
non-cash Exploration Segment goodwill impairment as part of continuing
operations, primarily 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.
In December 2007, the Company closed the sale of its royalty portfolio and other
non-core assets to Franco-Nevada Corporation for cash consideration of
approximately $1.2 billion, which resulted in a pre-tax gain of $0.9 billion
($0.6 billion after-tax). The Company also completed the sale of its Pajingo
mine for $23 million, which resulted in a pre-tax gain of approximately $8
million ($5 million after-tax) in the fourth quarter of 2007. As a result,
Pajingo's results for 2007 and 2006 were reclassified to discontinued
operations.
On January 18, 2008, the Company announced the successful completion of its
offer to acquire a controlling interest in Miramar Mining Corporation. This
transaction is expected to close during the first quarter of 2008.
- --------------------------------------------------------------------------------
FOURTH QUARTER AND 2007 REGIONAL HIGHLIGHTS
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
NEVADA Q4 2007 Q4 2006 2007 2006
- --------------------------------------------------------------------------------
Consolidated gold sales (000 ounces) (1) 667 887 2,341 2,534
Equity gold sales (000 ounces) (1) 667 887 2,341 2,427
Costs applicable to sales ($/ounce) (2) $ 384 $ 363 $ 444 $ 403
Capital expenditures ($ million) $ 135 $ 204 $ 588 $ 705
- --------------------------------------------------------------------------------
(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.
(2) Excludes depreciation, depletion and amortization, loss on settlement of
price-capped forward sales contracts, and Midas redevelopment.
Nevada Operating Performance
Equity gold sales in Nevada decreased in the fourth quarter to 667,000 ounces
from 887,000 ounces in the year ago quarter primarily due to lower mill grades
at Carlin and Twin Creeks, limited mining activities at Midas following the
suspension of operations in June 2007, higher in-process inventories at year-end
and limited production from Lone Tree due to the completion of mining, partially
offset by increased production at Leeville. In November 2007, Leeville achieved
its design capacity of 3,200 tons per day, completing Leeville's planned ramp-up
to steady-state production. On October 11, 2007, the Mine Safety and Health
Administration lifted the restrictive order that required Midas to halt mining
activities in June 2007. As a result, the Company has been completing
redevelopment work at the mine, with ramp-up in the first quarter of 2008
nearing historical production levels.
Open pit ore mined decreased 20% to 10.4 million tons in the fourth quarter of
2007, down from 13.0 million tons in the year ago quarter, primarily due to
fewer tons mined at Gold Quarry and increased waste stripping at Phoenix.
Underground ore mined decreased 10% in the fourth quarter of 2007 due to the
completion of mining at Carlin East and reduced mining activities at Midas. Ore
milled increased 6% to 6.9 million tons from 6.5 million tons in the year ago
quarter, while milled ore grade decreased 14% during the same period, both
driven by the processing of lower grade ore at Phoenix. Ore placed on leach pads
decreased 19% in the fourth quarter of 2007 compared to the year ago quarter,
primarily as a result of mine sequencing at Gold Quarry and the completion of
mining at Lone Tree. Mine sequencing at Gold Quarry also contributed to the 9%
increase in leach ore grade from the year ago quarter.
Total costs applicable to sales decreased 19% in the fourth quarter to $255
million from $316 million in the year ago quarter, primarily due to the
completion of mining at Lone Tree and Carlin East. Total costs applicable to
sales also decreased because fewer in-process and finished goods inventories
were sold during the fourth quarter of 2007 compared to the year ago quarter.
Costs applicable to sales per ounce increased 6% in the fourth quarter of 2007
to $384 from $363 in the year ago quarter, primarily due to lower production,
higher cost production at Phoenix, and reduced mining activities at the
lower-cost Midas mine following the suspension of operations.
NEWMONT - Fourth Quarter and 2007 Financial and Operating Results (February 21,
2008)
Page 2 of 20
Phoenix Update
The focus at Phoenix during the fourth quarter was continued progress on
optimization projects. The in-fill drill program was increased from 183 to 222
planned drill holes as actual drilling costs were lower than budget.
Approximately 80% of the planned drill footage was complete as of December 31,
2007. Favorable results were realized through the implementation of continuous
improvement projects, with an emphasis on human resources, equipment
productivity and other cost reductions. Mill capacity utilization also improved
with nearly 1 million tons processed in each month of the quarter compared to
roughly 900,000 tons in the third quarter of 2007. Additionally, the new crusher
remains on schedule for start-up by mid-2008 and was approximately 42% complete
at the end of the fourth quarter. Phoenix sold 48,700 ounces at costs applicable
to sales of $691 per ounce and 181,400 ounces at costs applicable to sales of
$729 per ounce for the quarter and year ended December 31, 2007, respectively.
The Company continues to expect an updated optimization plan for Phoenix by
mid-2008.
Nevada Capital Projects
Capital expenditures in Nevada were $135 million and $588 million for the
quarter and year ended December 31, 2007, respectively. Construction of the 200
megawatt coal-fired power plant was approximately 95% complete at the end of the
fourth quarter and remains on schedule for completion in the first half of 2008.
During the fourth quarter of 2007, the power plant successfully achieved its
first fire on oil and in January 2008 the plant achieved first fire on coal.
Capital costs are expected to be in line with the previous outlook of between
$620 and $640 million. As disclosed previously, the lower cost of self-generated
electricity, when compared with projected future market prices in the region, is
expected to reduce Nevada's costs applicable to sales by approximately $25 per
ounce.
- ---------------------------------------------------------------------------------
YANACOCHA Q4 2007 Q4 2006 2007 2006
- ---------------------------------------------------------------------------------
Consolidated gold sales (000 ounces) 438 439 1,565 2,572
Equity gold sales (000 ounces) 224 225 803 1,320
Costs applicable to sales ($/ounce) (1) $ 315 $ 244 $ 345 $ 193
Capital expenditures ($ million) $ 72 $ 95 $ 253 $ 269
- ---------------------------------------------------------------------------------
(1) Excludes depreciation, depletion and amortization and loss on settlement
of price-capped forward sales contracts.
Yanacocha Operating Performance
Equity gold sales at Yanacocha in the fourth quarter were consistent with the
year ago quarter at approximately 438,000 ounces with slightly higher gold
production offset by an increase in finished goods inventory. Ore mined
increased 37% to 32.7 million tons from 23.9 million tons and leach ore grade
increased by 31% in the fourth quarter of 2007 compared to the year ago quarter.
Costs applicable to sales increased in the fourth quarter of 2007 to $315 per
ounce from $244 per ounce in the year ago quarter. The increase was primarily
due to higher labor, diesel, and other commodity prices, as well as higher
worker's participation bonuses and royalties due to increased gold prices.
Yanacocha Capital Projects
Consolidated capital expenditures at Yanacocha were $72 million and $253 million
for the quarter and year ended December 31, 2007, respectively. Progress on the
gold mill continued as expected, with construction approximately 96% complete at
the end of the fourth quarter of 2007. Major milestones during the quarter
included completing the primary crusher and the stockpile feed system, and
beginning pre-commissioning activities. The Company continues to anticipate
commercial production in the first half of 2008. Capital costs on the project
are expected to remain in line with the outlook of between $250 and $270
million. Once complete, the gold mill is expected to enhance recovery of complex
ores, improve financial returns and extend the operating life at Yanacocha.
NEWMONT - Fourth Quarter and 2007 Financial and Operating Results (February 21,
2008)
Page 3 of 20
- ---------------------------------------------------------------------------------
AUSTRALIA/NEW ZEALAND Q4 2007 Q4 2006 2007 2006
- ---------------------------------------------------------------------------------
Consolidated gold sales (000 ounces) 295 289 1,153 1,176
Equity gold sales (000 ounces) 295 289 1,153 1,176
Costs applicable to sales ($/ounce) (1) $ 494 $ 409 $ 496 $ 389
Capital expenditures ($ million) $ 229 $ 84 $ 597 $ 192
- ---------------------------------------------------------------------------------
(1) Excludes depreciation, depletion and amortization and loss on settlement
of price-capped forward sales contracts.
Australia/New Zealand Operating Performance
Australia/New Zealand sales increased 2% in the fourth quarter of 2007 to
295,000 ounces from 289,000 ounces in the year ago quarter, primarily due to
increased production at Jundee and Waihi, partially offset by decreased
production at Tanami and Kalgoorlie.
Gold sales at Jundee increased 13% in the fourth quarter of 2007 compared to
2006, primarily due to a 55% increase in mill ore grades and a 3% increase in
mill recoveries, partially offset by a 31% decrease in mill throughput. Gold
sales at Waihi increased 55% in the fourth quarter of 2007 from 2006, primarily
due to a 48% increase in mill throughput, partially offset by a 23% decrease in
ore grade resulting from mining a higher proportion of open pit ore. Gold sales
at Tanami decreased 11% in the fourth quarter of 2007 from 2006, primarily due
to a 20% decrease in milled ore grade from the blending of low grade stockpiles
and a 9% decrease in throughput. Gold sales at Kalgoorlie in the fourth quarter
of 2007 were comparable to the year ago quarter primarily due to slightly lower
throughput and 11% lower mill ore grade, partially offset by the timing of gold
sales and a 2% increase in recovery rates.
Costs applicable to sales increased 21% in the fourth quarter of 2007 to $494
per ounce from $409 per ounce in the year ago quarter, primarily due to the
strengthening Australian and New Zealand dollar exchange rates, which increased
unit costs by approximately $58 per ounce compared to the year ago quarter.
Additionally, royalties increased due to higher gold prices, and input costs
were higher, particularly related to fuel, electricity and labor.
The following quarter-on-quarter costs applicable to sales variances include the
impact of the strengthening Australian and New Zealand dollars. Costs applicable
to sales increased 11% at Jundee to $416 per ounce from $374 per ounce,
primarily due to higher contract mining and electricity costs. At Waihi, costs
applicable to sales increased 30% to $445 per ounce from $343 per ounce
primarily due to increased ore re-handling costs and milling costs from higher
mill throughput. Costs applicable to sales at Kalgoorlie increased 25% to $673
per ounce from $539 per ounce, primarily due to higher mining costs from sound
abatement and increased equipment maintenance. At Tanami, costs applicable to
sales increased 24% to $445 per ounce from $360 per ounce, primarily due to
lower production.
Australia/New Zealand Capital Projects
Capital expenditures in Australia/New Zealand were $229 million and $597 million
for the quarter and year ended December 31, 2007, respectively. Development of
the Boddington project was approximately 62% complete at the end of 2007, with
mill start-up expected in late 2008 or early 2009. 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 $1.1 billion, primarily as a result of the adverse impact of the
Australian dollar exchange rate, design optimization, and labor and commodity
cost escalation.
NEWMONT - Fourth Quarter and 2007 Financial and Operating Results (February 21,
2008)
Page 4 of 20
- ----------------------------------------------------------------------------------
BATU HIJAU Q4 2007 Q4 2006 2007 2006
- ----------------------------------------------------------------------------------
Consolidated gold sales (000 ounces) 120 169 494 435
Equity gold sales (000 ounces) 54 89 233 230
Costs applicable to sales ($/ounce) (1) $ 354 $ 192 $ 243 $ 209
- ----------------------------------------------------------------------------------
Consolidated copper sales (million pounds) 76 147 428 435
Equity copper sales (million pounds) 34 78 204 230
Costs applicable to sales ($/pound) (1) $ 1.29 $ 0.64 $ 1.10 $ 0.71
Capital expenditures ($ million) $ 31 $ $ 74 $ 106
- ----------------------------------------------------------------------------------
Average realized copper price $ 1.59 $ 1.63 $ 2.86 $ 1.54
- ----------------------------------------------------------------------------------
(1) Excludes depreciation, depletion and amortization and loss on settlement
of price-capped forward sales contracts.
Batu Hijau Operating Performance
Equity gold and copper sales decreased in the fourth quarter of 2007 to 54,000
ounces and 34 million pounds, respectively, from 89,000 ounces and 78 million
pounds, respectively, in the year ago quarter. Ore tons mined decreased 78% in
the fourth quarter compared to the year ago quarter primarily due to mine
sequencing in the pit. Lower gold and copper production compared to the year ago
quarter was primarily due to a 20% decrease in throughput as a result of
unplanned mill downtime in the fourth quarter of 2007, and lower gold and copper
recoveries due to a higher ratio of acid-soluble copper content, partially
offset by 6% higher gold ore grades. The timing of sales also negatively
impacted the fourth quarter of 2007 as concentrate inventory at year-end
increased compared to the year ago quarter.
Total costs applicable to sales increased $15 million from the year ago quarter,
primarily due to fewer ore tons mined and stockpiled, resulting in a higher
portion of mining costs charged in the current year quarter. Additionally, the
average waste-to-ore ratio increased compared to the year ago quarter, partially
offset by lower fuel costs as a result of fewer operating hours.
Costs applicable to sales per unit increased 84% per ounce of gold and 102% per
pound of copper in the fourth quarter of 2007 from 2006, primarily due to
decreased sales compared to the year ago quarter. Additionally, a higher
proportion of costs were allocated to gold than copper due to the higher
proportion of gold revenue in the fourth quarter of 2007 compared to the year
ago quarter.
The average realized copper price, after treatment and refining charges,
decreased slightly in the fourth quarter of 2007 to $1.57 per pound from $1.63
per pound in the year ago quarter. Although copper sales were completely
unhedged in the fourth quarter of 2007, the decline in copper prices during the
fourth quarter of 2007 reduced the Company's provisional pricing
market-to-market on third quarter sales revenue by $119 million. This
provisional pricing mark-to-market adjustment lowered the average realized price
in the fourth quarter of 2007 by approximately $1.54 per pound.
- ---------------------------------------------------------------------------------
AHAFO Q4 2007 Q4 2006 2007 2006
- ---------------------------------------------------------------------------------
Consolidated gold sales (000 ounces) 85 125 446 202
Equity gold sales (000 ounces) 85 125 446 202
Costs applicable to sales ($/ounce) (1) $ 416 $ 326 $ 396 $ 297
Capital expenditures ($ million) $ 35 $ 22 $ 114 $ 177
- ---------------------------------------------------------------------------------
(1) Excludes depreciation, depletion and amortization and loss on settlement
of price-capped forward sales contracts.
Ahafo Operating Performance
Gold ounces sold at Ahafo decreased 32% in the fourth quarter of 2007 to 85,000
ounces from 125,000 ounces in the year ago quarter. The decrease was primarily
due to a 25% decrease in mill throughput as a result of unplanned downtime in
December 2007 and the processing of 12% lower mill ore grades, partially offset
by a 4% increase in recovery rates. Both total tons and ore tons mined decreased
compared to the year ago quarter as a result of longer haul distances as pits
deepen and increased waste stripping at the Apensu pit.
Costs applicable to sales at Ahafo increased 28% to $416 per ounce in the fourth
quarter of 2007 from $326 per ounce in the year ago quarter, primarily due to
fewer ounces sold and increased mining and milling costs. Mining costs increased
due to higher waste removal costs, as well as the year ago quarter benefiting
from the capitalization of pre-production costs and lower maintenance costs.
Mining costs also increased due to increased pit dewatering, labor, fuel and
tire costs. Milling costs increased compared to the year ago quarter primarily
due to increased maintenance costs as the new mill required minimal maintenance
in the year ago quarter.
NEWMONT - Fourth Quarter and 2007 Financial and Operating Results (February 21,
2008)
Page 5 of 20
- ---------------------------------------------------------------------------------
OTHER OPERATIONS Q4 2007 Q4 2006 2007 2006
- ---------------------------------------------------------------------------------
Consolidated gold sales (000 ounces) 43 45 185 267
Equity gold sales (000 ounces) 40 42 174 252
Costs applicable to sales ($/ounce) (1) $ 338 $ 272 $ 332 $ 222
Capital expenditures ($ million) $ 1 $ 3 $ 13 $ 11
- ---------------------------------------------------------------------------------
(1) Excludes depreciation, depletion and amortization and loss on settlement
of price-capped forward sales contracts.
Other Operations Performance
Equity gold sales for the Kori Kollo mine in Bolivia and the La Herradura mine
in Mexico decreased slightly to 40,000 ounces in the fourth quarter of 2007 from
42,000 ounces in the year ago quarter. Equity gold sales at Kori Kollo decreased
22% in the fourth quarter of 2007 from 2006, primarily due to the timing of
production flow from the leach pads. La Herradura gold production was slightly
lower in the fourth quarter of 2007 from the year ago quarter, however, gold
sales increased 22%, primarily due to the timing of sales in the year ago
quarter.
Costs applicable to sales increased in the fourth quarter of 2007 to $338 per
ounce from $272 per ounce in the year ago quarter. Costs applicable to sales per
ounce decreased 17% at Kori Kollo in the fourth quarter of 2007, primarily due
to lower mining costs from a reduction in waste removal costs and increased ore
tons mined in the fourth quarter of 2007 compared to the year ago quarter. Costs
applicable to sales increased 66% at La Herradura, primarily due to increased
waste removal costs.
- --------------------------------------------------------------------------------
CAPITAL, TAX RATE AND OTHER
- --------------------------------------------------------------------------------
Capital expenditures for the fourth quarter of 2007 were $511 million, primarily
for the construction of the power plant and sustaining mine development in
Nevada ($135 million), construction of the gold mill and leach pad expansions at
Yanacocha in Peru ($72 million), construction of the Boddington project and
other sustaining mine development in Australia/New Zealand ($229 million), as
well as sustaining mine development at Ahafo in Ghana ($35 million). The Company
expensed $163 million of depreciation, depletion and amortization during the
fourth quarter of 2007. The Company incurred $38 million of general and
administrative expenses and net interest expense of $28 million during the
fourth quarter of 2007. The Company incurred $17 million and $45 million of
advanced projects, research and development and exploration expenditures,
respectively, during the fourth quarter of 2007.
The effective tax rate on the (loss) income from continuing operations for the
quarter ended December 31, 2007 was (-11%) compared to 23% in the year ago
quarter. Excluding the $1.1 billion Exploration Segment goodwill impairment in
the fourth quarter of 2007, which is not deductible for tax purposes, the
effective tax rate for the fourth quarter of 2007 would have been 26%.
- --------------------------------------------------------------------------------
2008 FINANCIAL OUTLOOK
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
CONSOLIDATED FINANCIAL OUTLOOK ($ MILLIONS, EXCEPT TAX RATE) 2008 Outlook
- --------------------------------------------------------------------------------
Depreciation, depletion & amortization $725 - $775
Exploration $220 - $230
Advanced projects, research and development $120 - $180
General and administrative $140 - $150
Interest expense, net $110 - $120
Effective tax rate 30% - 34%
- --------------------------------------------------------------------------------
NEWMONT - Fourth Quarter and 2007 Financial and Operating Results (February 21,
2008)
Page 6 of 20
- --------------------------------------------------------------------------------
STATEMENTS OF CONSOLIDATED INCOME
- --------------------------------------------------------------------------------
Q4 2007 Q4 2006 2007 2006
-------- -------- -------- -------
(in millions, except per share)
(unaudited) (audited)
Revenues
Sales- gold, net $ 1,289 $ 1,185 $ 4,305 $4,211
Sales- copper, net 121 239 1,221 671
-------- -------- -------- -------
1,410 1,424 5,526 4,882
-------- -------- -------- -------
Costs and expenses
Costs applicable to sales (exclusive of loss on
settlement of price-capped forward sales contracts,
Midas redevelopment and depreciation, depletion
and amortization shown separately below)
Gold 630 627 2,507 2,146
Copper 98 93 471 308
Loss on settlement of price-capped forward sales
contracts - - 531 -
Midas redevelopment 1 - 11 -
Depreciation, depletion and amortization 163 178 695 589
Exploration 45 49 177 166
Advanced projects, research and development 17 20 62 81
General and administrative 38 43 143 136
Write-down of goodwill 1,122 - 1,122 -
Write-down of investments 46 - 46 -
Write-down of long-lived and other assets 2 - 4 3
Other expense, net 49 91 148 159
-------- -------- -------- -------
2,211 1,101 5,917 3,588
-------- -------- -------- -------
Other income (expense)
Other income, net 44 34 144 53
Interest expense, net (28) (27) (105) (97)
-------- -------- -------- -------
16 7 39 (44)
-------- -------- -------- -------
(Loss) income from continuing operations before income
tax, minority interest and equity (loss) income of
affiliates (785) 330 (352) 1,250
Income tax expense (89) (76) (200) (326)
Minority interest in income of consolidated subsidiaries (58) (84) (410) (363)
Equity (loss) income of affiliates (1) 1 (1) 2
-------- -------- -------- -------
(Loss) income from continuing operations (933) 171 (963) 563
Income)(loss)dfromndiscontinuedtoperations 644 52 (923) 228
-------- -------- -------- -------
Net (loss) income $ (289) $ 223 $(1,886) $ 791
======== ======== ======== =======
Income per common share Basic:
(Loss) income from continuing operations $ (2.06) $ 0.38 $ (2.13) $ 1.25
Income (loss) from discontinued operations 1.43 0.12 (2.04) 0.51
-------- -------- -------- -------
Net (loss) income $ (0.63) $ 0.50 $ (4.17) $ 1.76
======== ======== ======== =======
Diluted:
(Loss) income from continuing operations $ (2.06) $ 0.38 $ (2.13) $ 1.25
Income (loss) from discontinued operations 1.43 0.11 (2.04) 0.50
-------- -------- -------- -------
Net (loss) income $ (0.63) $ 0.49 $ (4.17) $ 1.75
======== ======== ======== =======
Basic weighted-average common shares outstanding 452 450 452 450
======== ======== ======== =======
Diluted weighted-average common shares outstanding 452 452 452 452
======== ======== ======== =======
Cash dividends declared per common share $ 0.10 $ 0.10 $ 0.40 $ 0.40
-------- -------- -------- -------
NEWMONT - Fourth Quarter and 2007 Financial and Operating Results (February 21,
2008)
Page 7 of 20
- --------------------------------------------------------------------------------
CONSOLIDATED BALANCE SHEETS
- --------------------------------------------------------------------------------
At December 31,
2007 2006
-------- ---------
(in millions, audited)
ASSETS
Cash and cash equivalents $ 1,231 $ 1,166
Marketable securities and other short-term investments 61 109
Trade receivables 177 142
Accounts receivable 168 206
Inventories 463 376
Stockpiles and ore on leach pads 373 377
Deferred income tax assets 112 156
Other current assets 87 93
-------- ---------
Current assets 2,672 2,625
Property, plant and mine development, net 9,140 6,544
Investments 1,527 1,319
Long-term stockpiles and ore on leach pads 788 812
Deferred income tax assets 1,027 793
Other long-term assets 234 178
Goodwill 186 1,338
Assets of operations held for sale 24 1,992
-------- ---------
Total assets $ 15,598 $ 15,601
======== =========
LIABILITIES
Current portion of long-term debt $ 255 $ 159
Accounts payable 339 340
Employee-related benefits 153 182
Derivative instruments 3 174
Income and mining taxes 88 337
Other current liabilities 662 515
-------- ---------
Current liabilities 1,500 1,707
Long-term debt 2,683 1,752
Reclamation and remediation liabilitites 623 521
Deferred income tax liabilities 1,025 626
Employee-related benefits 226 309
Other long-term liabilities 150 135
Liabilities of operations held for sale 394 116
-------- ---------
Total liabilities 6,601 5,166
-------- ---------
Minority interests in subsidiaries 1,449 1,098
-------- ---------
STOCKHOLDERS' EQUITY
Common stock 696 677
Additional paid-in capital 6,696 6,703
Accumulated other comprehensive income 957 673
Retained (deficit) earnings (801) 1,284
-------- ---------
Total stockholders' equity 7,548 9,337
-------- ---------
Total liabilities and stockholders' equity $ 15,598 $ 15,601
-------- ---------
NEWMONT - Fourth Quarter and 2007 Financial and Operating Results (February 21,
2008)
Page 8 of 20
- --------------------------------------------------------------------------------
STATEMENTS OF CONSOLIDATED CASH FLOW
- --------------------------------------------------------------------------------
Q4 2007 Q4 2006 2007 2006
------- ------- ------- -------
(in millions)
(unaudited) (audited)
Operating activities:
Net (loss) income $ (289) $ 223 $(1,886) $ 791
Adjustments to reconcile net (loss) income to net cash from
continuing operations:
Write-down of goodwill 1,122 -- 1,122 --
(Income) loss from discontinued operations (644) (52) 923 (228)
Depreciation, depletion and amortization 163 178 695 589
Minority interest expense 58 84 410 363
Deferred income taxes 136 (12) (152) (127)
Write-down of investments 46 -- 46 --
Stock-based compensation expense 10 33 46 50
Accretion of accumulated reclamation obligations 8 8 37 30
Hedge gain, net -- (128) (9) (46)
Revenue from prepaid forward sales obligation -- -- -- (48)
Other operating adjustments and write-downs 11 27 48 102
Net change in operating assets and liabilities (1) 10 42 (755) (347)
------- ------- ------- -------
Net cash provided from continuing operations 631 403 525 1,129
Net cash provided from discontinued operations 39 26 138 96
------- ------- ------- -------
Net cash from operations 670 429 663 1,225
------- ------- ------- -------
Investing activities:
Additions to property, plant and mine development (511) (440) (1,670) (1,537)
Proceeds from sale of marketable debt securities 16 288 224 2,216
Investments in marketable debt and equity securities (18) (107) (258) (1,493)
Acquisitions (953) -- (953) (348)
Cash received on repayment of Batu Hijau carried interest -- -- 161 --
Other 5 4 29 20
------- ------- ------- -------
Net cash used in investing activities of continuing operations (1,461) (255) (2,467) (1,142)
Net cash provided from investing activities of discontinued
operations 1,199 41 1,354 338
------- ------- ------- -------
Net cash used in investing activities (262) (214) (1,113) (804)
------- ------- ------- -------
Financing activities:
Proceeds from debt, net 280 -- 3,008 198
Repayment of debt (385) (48) (2,036) (111)
Dividends paid to minority interests (154) (29) (270) (264)
Dividends paid to common stockholders (45) (45) (181) (180)
Proceeds from stock issuance 31 12 51 78
Purchase of Company share call options -- -- (366) --
Issuance of Company share warrants -- -- 248 --
Early extinguishment of prepaid forward sales obligation -- -- -- (48)
Change in restricted cash and other 4 5 11 (6)
------- ------- ------- -------
Net cash (used in) provided from financing activities of
continuing operations (269) (105) 465 (333)
Net cash used in financing activities of discontinued operations -- -- -- (7)
------- ------- ------- -------
Net cash (used in) provided from financing activities (269) (105) 465 (340)
------- ------- ------- -------
Effect of exchange rate changes on cash 39 (3) 50 3
------- ------- ------- -------
Net change in cash and cash equivalents 178 107 65 84
Cash and cash equivalents at beginning of period 1,053 1,059 1,166 1,082
------- ------- ------- -------
Cash and cash equivalents at end of period $ 1,231 $ 1,166 $ 1,231 $ 1,166
======= ======= ======= =======
(1) Net change in operating assets and liabilities
Decrease (increase) in operating assets:
Trade and accounts receivable $ 169 $ (58) $ 17 $ (110)
Inventories, stockpiles and ore on leach pads (59) (61) (95) (382)
Other assets 10 24 6 (25)
Increase (decrease) in operating liabilities:
Accounts payable and other accrued liabilities (92) 153 (629) 230
Reclamation liabilities (18) (16) (54) (60)
------- ------- ------- -------
10 42 (755) (347)
======= ======= ======= =======
NEWMONT - Fourth Quarter and 2007 Financial and Operating Results (February 21,
2008)
Page 9 of 20
- --------------------------------------------------------------------------------
OPERATING 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
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 - Fourth Quarter and 2007 Financial and Operating Results (February 21,
2008)
Page 10 of 20
- --------------------------------------------------------------------------------
OPERATING STATISTICS - NEVADA
- --------------------------------------------------------------------------------
Q4 2007 Q4 2006 2007 2006
--------- --------- --------- ---------
Tons mined (000 dry short tons):
Open pit
Ore 10,370 12,961 42,562 38,446
Waste 32,040 41,631 171,565 152,992
--------- --------- --------- ---------
Total 42,410 54,592 214,127 191,438
--------- --------- --------- ---------
Undergound 596 660 1,942 1,651
Tons milled/processed (000 dry short tons):
Mill 6,945 6,540 25,526 17,882
Leach 3,839 4,768 14,042 22,138
Average ore grade (oz/ton):
Mill 0.099 0.115 0.098 0.127
Leach 0.035 0.032 0.035 0.026
Average mill recovery rate 79.6% 80.2% 81.2% 81.1%
Gold ounces produced (thousands):
Mill 559 735 2,004 2,059
Leach 100 124 332 364
Incremental start-up 6 17 6 100
--------- --------- --------- ---------
Consolidated 665 876 2,342 2,523
Equity 665 876 2,342 2,416
Gold ounces sold (thousands):
Consolidated 667 887 2,341 2,534
Equity 667 887 2,341 2,427
Gold production costs (millions):
Costs applicable to sales $ 255 $ 316 $ 1,036 $ 980
Depreciation, depletion and amortization $ 51 $ 72 $ 220 $ 180
Gold production costs (per ounce sold):
Direct mining and production costs $ 390 $ 376 $ 454 $ 406
By-product credits (23) (22) (26) (15)
Royalties and production taxes 15 7 14 9
Reclamation/accretion expense 2 2 2 3
--------- --------- --------- ---------
Costs applicable to sales $ 384 $ 363 444 $ 403
Depreciation, depletion, and amortization $ 78 $ 84 $ 94 $ 74
(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 - Fourth Quarter and 2007 Financial and Operating Results (February 21,
2008)
Page 11 of 20
- --------------------------------------------------------------------------------
OPERATING STATISTICS - NEVADA BY LOCATION
- --------------------------------------------------------------------------------
Q4 2007 Q4 2006 2007 2006
-----------------------------------------------
Mine production:
Open pit ore mined (000 dry short tons):
Carlin 3,056 6,648 17,792 22,768
Phoenix 3,252 4,330 12,241 4,330
Twin Creeks 4,062 1,303 12,529 7,676
Lone Tree -- 680 -- 3,672
-----------------------------------------------
10,370 12,961 42,562 38,446
Average ore grade (oz/ton) 0.055 0.047 0.058 0.048
Open pit waste mined (000 dry short tons):
Carlin 12,312 19,593 84,045 75,012
Phoenix 10,846 7,780 44,963 7,780
Twin Creeks 8,882 13,654 42,557 59,709
Lone Tree -- 604 -- 10,491
-----------------------------------------------
32,040 41,631 171,565 152,992
Underground ore mined (000 dry short tons):
Carlin - Carlin East -- 106 151 241
Carlin - Deep Post 84 99 308 388
Carlin - Chukar 133 114 428 336
Carlin - Leeville 302 232 700 232
Midas 46 97 236 333
Turquoise Ridge 31 12 119 121
-----------------------------------------------
596 660 1,942 1,651
Average ore grade (oz/ton) 0.418 0.467 0.399 0.471
Mill throughput (000 dry short tons):
Carlin - Mill 5 1,370 1,312 5,301 4,799
Carlin - Mill 6 836 757 3,058 2,739
Twin Creeks - Juniper 279 263 1,032 957
Twin Creeks - Sage 784 759 3,222 3,202
Lone Tree 522 648 1,819 2,708
Phoenix 2,914 2,531 10,443 2,531
Midas 50 95 234 331
Other 190 175 417 615
-----------------------------------------------
6,945 6,540 25,526 17,882
Average ore grade (oz/ton) 0.099 0.115 0.098 0.127
Average mill recovery rate 79.6% 80.2% 81.2% 81.1%
NEWMONT - Fourth Quarter and 2007 Financial and Operating Results (February 21,
2008)
Page 12 of 20
- --------------------------------------------------------------------------------
OPERATING STATISTICS - YANACOCHA
- --------------------------------------------------------------------------------
Q4 2007 Q4 2006 2007 2006
--------- --------- --------- ---------
Tons mined (000 dry short tons):
Ore 32,718 23,918 98,595 115,795
Waste 19,523 27,990 110,276 101,706
--------- --------- --------- ---------
Total 52,241 51,908 208,871 217,501
--------- --------- --------- ---------
Tons processed (000 dry short tons) 32,442 26,666 98,319 118,551
Average ore grade (oz/ton) 0.021 0.016 0.019 0.026
Gold ounces produced (thousands):
Consolidated 470 456 1,565 2,612
Equity 241 234 803 1,341
Gold ounces sold (thousands):
Consolidated 438 439 1,565 2,572
Equity 224 225 803 1,320
Gold production costs (millions):
Costs applicable to sales $ 138 $ 107 $ 540 $ 498
Depreciation, depletion and amortization $ 36 $ 34 $ 160 $ 172
Gold production costs (per ounce sold):
Direct mining and production costs $ 312 $ 257 $ 348 $ 202
By-product credits (18) (21) (22) (16)
Royalties and production taxes 16 5 13 4
Reclamation/accretion expense 5 3 6 3
--------- --------- --------- ---------
Costs applicable to sales $ 315 $ 244 $ 345 $ 193
Depreciation, depletion, and amortization $ 83 $ 78 $ 103 $ 67
NEWMONT - Fourth Quarter and 2007 Financial and Operating Results (February 21,
2008)
Page 13 of 20
- --------------------------------------------------------------------------------
OPERATING STATISTICS - BATU HIJAU
- --------------------------------------------------------------------------------
Q4 2007 Q4 2006 2007 2006
--------- --------- --------- ---------
Tons mined (000 dry short tons):
Ore 4,583 21,101 29,543 127,255
Waste 57,700 54,670 215,364 165,904
--------- --------- --------- ---------
Total 62,283 75,771 244,907 293,159
--------- --------- --------- ---------
Tons milled (000 dry short tons) 10,177 12,755 46,782 47,026
Average ore grade:
Gold (oz/ton) 0.018 0.017 0.014 0.012
Copper 0.61% 0.65% 0.60% 0.55%
Average mill recovery rate:
Gold 80.7% 81.2% 81.9% 79.5%
Copper 84.3% 90.7% 86.1% 87.3%
Gold ounces produced (thousands):
Consolidated 151 176 548 448
Equity 68 93 258 237
Gold ounces sold (thousands):
Consolidated 120 169 494 435
Equity 54 89 233 230
Copper pounds produced (millions):
Consolidated 105 151 484 454
Equity 47 80 230 240
Copper pounds sold (millions):
Consolidated 76 147 428 435
Equity 34 78 204 230
Gold production costs (millions):
Costs applicable to sales $ 43 $ 32 $ 120 $ 91
Depreciation, depletion and amortization $ 8 $ 6 $ 25 $ 20
Gold production costs (per ounce sold):
Direct mining and production costs $ 345 $ 188 $ 233 $ 203
By-product credits (12) (10) (8) (9)
Royalties and production taxes 17 12 15 13
Reclamation/accretion expense 4 2 3 2
--------- --------- --------- ---------
Costs applicable to sales $ 354 $ 192 $ 243 $ 209
Depreciation, depletion, and amortization $ 69 $ 38 $ 50 $ 46
Copper production costs (millions):
Costs applicable to sales $ 98 $ 94 $ 471 $ 308
Depreciation, depletion and amortization $ 17 $ 17 $ 96 $ 66
Copper production costs (per pound sold):
Direct mining and production costs $ 1.29 $ 0.63 $ 1.11 $ 0.71
By-product credits (0.04) (0.03) (0.04) (0.03)
Royalties and production taxes 0.03 0.03 0.02 0.02
Reclamation/accretion expense 0.01 0.01 0.01 0.01
--------- --------- --------- ---------
Costs applicable to sales $ 1.29 $ 0.64 $ 1.10 $ 0.71
Depreciation, depletion, and amortization $ 0.23 $ 0.11 $ 0.22 $ 0.15
NEWMONT - Fourth Quarter and 2007 Financial and Operating Results (February 21,
2008)
Page 14 of 20
- --------------------------------------------------------------------------------
OPERATING STATISTICS - AHAFO
- --------------------------------------------------------------------------------
Q4 2007 Q4 2006 2007 2006
--------- --------- --------- ---------
Tons mined (000 dry short tons):
Ore 2,063 2,690 8,923 5,033
Waste 8,617 9,221 35,312 14,966
--------- --------- --------- ---------
Total 10,680 11,911 44,235 19,999
--------- --------- --------- ---------
Tons milled (000 dry short tons): 1,628 2,171 8,090 3,515
Average ore grade (oz/ton) 0.060 0.068 0.060 0.065
Average mill recovery rate 90.4% 86.7% 92.0% 88.3%
Gold ounces produced (thousands):
Consolidated 93 119 456 197
Equity 93 119 456 197
Gold ounces sold (thousands):
Consolidated 85 125 446 202
Equity 85 125 446 202
Gold production costs (millions):
Costs applicable to sales $ 35 $ 41 $ 176 $ 60
Depreciation, depletion and amortization $ 9 $ 13 $ 43 $ 19
Gold production costs (per ounce sold):
Direct mining and production costs $ 392 $ 308 $ 375 $ 279
By-product credits (1) (1) (1) (1)
Royalties and production taxes 24 18 21 18
Reclamation/accretion expense 1 1 1 1
--------- --------- --------- ---------
Costs applicable to sales $ 416 $ 326 $ 396 $ 297
Depreciation, depletion, and amortization $ 106 $ 101 $ 96 $ 94
NEWMONT - Fourth Quarter and 2007 Financial and Operating Results (February 21,
2008)
Page 15 of 20
- --------------------------------------------------------------------------------
OPERATING STATISTICS - JUNDEE AND TANAMI
- --------------------------------------------------------------------------------
Q4 2007 Q4 2006 2007 2006
--------- --------- --------- ---------
JUNDEE
Tons mined (000 dry short tons):
Open pit
Ore 223 177 966 812
Waste 661 1,522 5,430 5,810
--------- --------- --------- ---------
Total 884 1,699 6,396 6,622
--------- --------- --------- ---------
Underground 254 257 1,040 1,166
Tons milled (000 dry short tons) 439 638 1,827 2,460
Average ore grade (oz/ton) 0.215 0.139 0.174 0.136
Average mill recovery rate 95.5% 92.8% 92.9% 92.3%
Gold ounces produced (thousands):
Consolidated 87 83 291 313
Equity 87 83 291 313
Gold ounces sold (thousands):
Consolidated 87 77 298 306
Equity 87 77 298 306
Gold production costs (millions):
Costs applicable to sales $ 36 $ 28 $ 143 $ 113
Depreciation, depletion and amortization $ 8 $ 8 $ 26 $ 26
Gold production costs (per ounce sold):
Direct mining and production costs $ 392 $ 354 $ 458 $ 350
By-product credits (2) (2) (2) (2)
Royalties and production taxes 20 17 18 16
Reclamation/accretion expense 6 5 6 5
--------- --------- --------- ---------
Costs applicable to sales $ 416 $ 374 $ 480 $ 369
Depreciation, depletion, and amortization $ 88 $ 110 $ 88 $ 85
TANAMI
Tons mined (000 dry short tons) 497 539 2,032 2,136
Tons milled (000 dry short tons) 737 806 3,029 3,151
Average ore grade (oz/ton) 0.134 0.167 0.147 0.144
Average mill recovery rate 94.5% 95.5% 95.1% 95.2%
Gold ounces produced (thousands):
Consolidated 95 129 427 431
Equity 95 129 427 431
Gold ounces sold (thousands):
Consolidated 103 116 439 418
Equity 103 116 439 418
Gold production costs (millions):
Costs applicable to sales $ 46 $ 42 $ 187 $ 155
Depreciation, depletion and amortization $ 10 $ 9 $ 37 $ 30
Gold production costs (per ounce sold):
Direct mining and production costs $ 435 $ 295 $ 373 $ 314
By-product credits (1) (1) (1) (1)
Royalties and production taxes 9 63 51 54
Reclamation/accretion expense 2 3 2 3
--------- --------- --------- ---------
Costs applicable to sales $ 445 $ 360 $ 425 $ 370
Depreciation, depletion, and amortization $ 98 $ 76 $ 85 $ 72
NEWMONT - Fourth Quarter and 2007 Financial and Operating Results (February 21,
2008)
Page 16 of 20
- --------------------------------------------------------------------------------
OPERATING STATISTICS - KALGOORLIE AND WAIHI
- --------------------------------------------------------------------------------
Q4 2007 Q4 2006 2007 2006
--------- --------- --------- ---------
KALGOORLIE
Tons mined (000 dry short tons):
Open pit
Ore 1,722 1,715 6,741 7,037
Waste 9,786 9,267 36,412 38,687
--------- --------- --------- ---------
Total 11,508 10,982 43,153 45,724
--------- --------- --------- ---------
Underground 55 51 206 207
Tons milled (000 dry short tons) 1,609 1,633 6,527 6,434
Average ore grade (oz/ton) 0.051 0.057 0.054 0.062
Average mill recovery rate 86.9% 85.3% 85.6% 84.6%
Gold ounces produced (thousands):
Consolidated 76 87 314 342
Equity 76 87 314 342
Gold ounces sold (thousands):
Consolidated 74 76 323 332
Equity 74 76 323 332
Gold production costs (millions):
Costs applicable to sales $ 50 $ 41 $ 196 $ 163
Depreciation, depletion and amortization $ 5 $ 6 $ 24 $ 25
Gold production costs (per ounce sold):
Direct mining and production costs $ 668 $ 517 $ 585 $ 471
By-product credits (3) (3) (3) (3)
Royalties and production taxes 20 18 17 16
Reclamation/accretion expense (12) 7 6 6
--------- --------- --------- ---------
Costs applicable to sales $ 673 $ 539 $ 605 $ 490
Depreciation, depletion, and amortization $ 64 $ 83 $ 74 $ 76
WAIHI
Tons mined (000 dry short tons):
Open pit
Ore 428 45 614 890
Waste 442 826 3,490 987
--------- --------- --------- ---------
Total 870 871 4,104 1,877
--------- --------- --------- ---------
Underground 85 86 269 149
Tons milled (000 dry short tons) 260 176 550 1,025
Average ore grade (oz/ton) 0.139 0.181 0.173 0.135
Average mill recovery rate 90.9% 86.4% 89.7% 91.9%
Gold ounces produced (thousands):
Consolidated 31 29 85 130
Equity 31 29 85 130
Gold ounces sold (thousands):
Consolidated 31 20 93 120
Equity 31 20 93 120
Gold production costs (millions):
Costs applicable to sales $ 14 $ 7 $ 47 $ 27
Depreciation, depletion and amortization $ 6 $ 1 $ 21 $ 10
Gold production costs (per ounce sold):
Direct mining and production costs $ 494 $ 404 $ 526 $ 294
By-product credits (63) (74) (40) (79)
Royalties and production taxes 7 3 7 1
Reclamation/accretion expense 7 10 9 7
--------- --------- --------- ---------
Costs applicable to sales $ 445 $ 343 $ 502 $ 223
Depreciation, depletion, and amortization $ 206 $ 36 $ 226 $ 83
NEWMONT - Fourth Quarter and 2007 Financial and Operating Results (February 21,
2008)
Page 17 of 20
- --------------------------------------------------------------------------------
OPERATING STATISTICS -KORI KOLLO AND GOLDEN GIANT
- --------------------------------------------------------------------------------
Q4 2007 Q4 2006 2007 2006
--------- --------- --------- ---------
KORI KOLLO
Tons mined (000 dry short tons):
Ore 2,564 1,920 9,178 9,516
Waste 2,550 4,317 12,445 14,294
--------- --------- --------- ---------
Total 5,114 6,237 21,623 23,810
--------- --------- --------- ---------
Tons processed (000 dry short tons) 2,564 1,920 9,178 9,516
Average ore grade (oz/ton) 0.020 0.021 0.020 0.021
Gold ounces produced (thousands):
Consolidated 22 26 89 129
Equity 19 22 78 114
Gold ounces sold (thousands):
Consolidated 21 26 87 129
Equity 18 23 76 114
Gold production costs (millions):
Costs applicable to sales $ 5 $ 8 $ 30 $ 27
Depreciation, depletion and amortization $ 3 $ 2 $ 10 $ 9
Gold production costs (per ounce sold):
Direct mining and production costs $ 253 $ 314 $ 345 $ 217
By-product credits (20) (25) (21) (17)
Royalties and production taxes -- -- -- --
Reclamation/accretion expense 16 12 16 10
--------- --------- --------- ---------
Costs applicable to sales $ 249 $ 301 $ 340 $ 210
Depreciation, depletion, and amortization $ 126 $ 92 $ 117 $ 68
GOLDEN GIANT
Tons mined (000 dry short tons) -- -- -- 13
Tons milled (000 dry short tons) -- -- -- 17
Average ore grade (oz/ton) -- -- -- 0.627
Average mill recovery rate -- -- -- 96.9%
Gold ounces produced (thousands):
Consolidated -- 1 12 59
Equity -- 1 12 59
Gold ounces sold (thousands):
Consolidated -- 1 12 59
Equity -- 1 12 59
Gold production costs (millions):
Costs applicable to sales $ -- $ -- $ 2 $ 13
Depreciation, depletion and amortization $ -- $ -- $ -- $ 1
Gold production costs (per ounce sold):
Direct mining and production costs $ -- $ -- $ 188 $ 203
By-product credits -- -- (3) (1)
Royalties and production taxes -- -- (9) (2)
Reclamation/accretion expense -- -- 29 14
--------- --------- --------- ---------
Costs applicable to sales $ -- $ -- $ 205 $ 214
Depreciation, depletion, and amortization $ -- $ -- $ -- $ 10
NEWMONT - Fourth Quarter and 2007 Financial and Operating Results (February 21,
2008)
Page 18 of 20
- --------------------------------------------------------------------------------
OPERATING STATISTICS - LA HERRADURA
- --------------------------------------------------------------------------------
Q4 2007 Q4 2006 2007 2006
--------- --------- --------- ---------
LA HERRADURA
Tons mined (000 dry short tons):
Ore 1,332 1,219 5,272 4,263
Waste 4,963 3,902 18,533 13,926
--------- --------- --------- ---------
Total 6,295 5,121 23,805 18,189
--------- --------- --------- ---------
Tons processed (000 dry short tons) 1,332 1,219 5,272 4,263
Average ore grade (oz/ton) 0.022 0.024 0.022 0.023
Gold ounces produced (thousands):
Consolidated 22 24 86 79
Equity 22 24 86 79
Gold ounces sold (thousands):
Consolidated 22 18 86 79
Equity 22 18 86 79
Gold production costs (millions):
Costs applicable to sales $ 9 $ 5 $ 29 $ 20
Depreciation, depletion and amortization $ 2 $ 2 $ 7 $ 9
Gold production costs (per ounce sold):
Direct mining and production costs $ 430 $ 267 $ 357 $ 254
By-product credits (10) (25) (17) (10)
Royalties and production taxes -- -- -- --
Reclamation/accretion expense 1 12 1 4
--------- --------- --------- ---------
Costs applicable to sales $ 421 $ 254 $ 341 $ 248
Depreciation, depletion, and amortization $ 76 $ 129 $ 77 $ 114
NEWMONT - Fourth Quarter and 2007 Financial and Operating Results (February 21,
2008)
Page 19 of 20
The Company's fourth quarter and year-end earnings conference call and web cast
presentation will be held on February 21, 2008 beginning 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 also be simultaneously carried on our web site at
www.newmont.com under Investor Information/Presentations and will be archived
there for a limited time.
Investor Contacts
John Seaberg 303.837.5743 john.seaberg@newmont.com
Media Contacts
Omar Jabara 303.837.5114 omar.jabara@newmont.com
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 capital expenditures,
project costs, tax rates and expenses; (ii) estimates regarding timing of future
development, construction, production or closure activities; and (iii)
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 2007 Annual Report on Form 10-K,
to be filed February 21, 2008, 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 - Fourth Quarter and 2007 Financial and Operating Results (February 21,
2008)
Page 20 of 20