Exhibit 99.1
NEWMONT ANNOUNCES FIRST QUARTER NET INCOME OF $84 MILLION ($0.19 PER SHARE)
DENVER, April 27 /PRNewswire-FirstCall/ -- Newmont Mining Corporation
(NYSE: NEM) today announced first quarter net income of $84 million ($0.19 per
share) compared with net income of $87 million ($0.20 per share) for the first
quarter of 2004. First quarter highlights included:
* Consolidated gold sales of 2.0 million ounces at consolidated costs
applicable to sales of $239 per ounce;
* Net cash provided by operating activities of $188 million after a
working capital increase of $78 million; and
* Cash and cash equivalents, marketable securities and short-term
investments of $2.2 billion.
Wayne W. Murdy, Chairman and Chief Executive Officer, said, "As we are
seeing throughout the industry, rising input commodity prices adversely impacted
operating costs during the quarter. Production was also temporarily impacted by
geotechnical factors at Batu Hijau. Consistent with prior guidance, we
anticipate significantly stronger operating performance in the second half of
the year as we start to benefit from new stripping capacity and higher grades.
Our project development efforts are ahead of schedule, and we continue to see
positive exploration results at Phoenix, Minas Conga and Ahafo."
Financial (in millions, except per share) Q1 2005 Q1 2004
--------------------------------------------- ---------- ----------
Revenues $ 961 $ 1,122
Net cash provided by operating activities $ 188 $ 353
Net income $ 84 $ 87
Net income per common share $ 0.19 $ 0.20
Operating
Consolidated gold sales (000 ounces) (1) 1,994 2,283
Equity gold sales (000 ounces) (2) 1,551 1,812
Average realized price ($/ounce) $ 425 $ 412
Costs applicable to sales ($/ounce) (1) $ 239 $ 219
Total cash costs ($/equity ounce) (3) $ 257 $ 230
Total production costs ($/equity ounce) (3) $ 325 $ 297
(1) Beginning in the first quarter of 2005, Newmont is reporting
consolidated sales and consolidated costs applicable to sales per
ounce of gold and per pound of copper in accordance with U.S. GAAP.
Costs applicable to sales exclude depreciation, depletion and
amortization, which are shown separately. Please refer to the table on
page 12 of this release for a comparison of total cash costs per ounce
and costs applicable to sales per ounce and equity gold sales and
consolidated gold sales. Newmont will discontinue providing guidance
for equity sales and total cash costs beginning in the second quarter
of 2005.
(2) Excludes 8.8 thousand ounces and 0.2 thousand ounces from Golden Grove
in 2005 and 2004, respectively.
(3) For a reconciliation of total cash costs per ounce of gold and per
pound of copper and total production costs per ounce of gold and per
pound of copper (non-GAAP measures of performance) to costs applicable
to sales calculated under GAAP, please refer to the reconciliation
tables on pages 17 through 22 of this release.
FINANCIAL & OPERATING REVIEW
First quarter 2005 net income was $84 million ($0.19 per share), compared
with $87 million ($0.20 per share) for the first quarter of 2004. Net income for
the first quarter was impacted by the following items:
* a $20 million ($0.04 per share) gain on the sale of the Mezcala
property in Mexico;
* a $19 million ($0.04 per share) net tax benefit from changes in
Australian tax law;
* a $5 million ($0.01 per share) expense for litigation and related
costs at Minahasa in Indonesia; and
* a $4 million ($0.01 per share) expense relating to waste dump
remediation costs in Nevada.
These items had the net effect of increasing net income for the first
quarter of 2005 by $30 million ($0.07 per share). Net income for the first
quarter of 2004 was impacted by a $47 million ($0.10 per share) non-cash,
after-tax charge to recognize the cumulative effect of a change in accounting
principle to conform accounting policies upon consolidation of Batu Hijau.
For the first quarter of 2005, the Company sold 1,994,000 ounces of gold on
a consolidated basis at an average realized price of $425 per ounce. For the
first quarter of 2004, the Company's consolidated gold sales were 2,283,000
ounces at an average realized price of $412 per ounce.
The Company generated net cash from operating activities of $188 million in
the first quarter of 2005 after a $78 million increase in working capital,
compared with $353 million in the year ago quarter.
OPERATING HIGHLIGHTS - NORTH AMERICA
North America Q1 2005 Q1 2004
-------------------------------------------------- ---------- ----------
Consolidated gold sales (000 ounces) 665 742
Equity gold sales (000 ounces) 634 707
Consolidated costs applicable to sales ($/ounce) $ 313 $ 288
Total cash costs ($/ounce) $ 312 $ 281
In Nevada, gold sales decreased 10% in the first quarter of 2005 from the
first quarter of 2004, primarily due to a 9% decline in mill grade in 2005 and
sales from inventories in 2004, partially offset by a 14% increase in mill
throughput. Costs applicable to sales per ounce increased 5% in the first
quarter of 2005 from the first quarter of 2004, primarily due to increased
diesel prices, higher underground contracted services and equipment maintenance
costs and reduced production.
At Golden Giant in Canada, gold sales decreased 15,000 ounces in the first
quarter of 2005 from the first quarter of 2004, primarily due to a 22% decline
in ore grade. Costs applicable to sales per ounce increased 39% in the first
quarter of 2005 from the first quarter of 2004, primarily as a result of lower
production. Golden Giant is nearing the end of its mine life with final sales
expected in early 2006.
At Holloway in Canada, gold sales increased by 4% in the first quarter of
2005 from the first quarter of 2004, primarily due to a 10% increase in mill
throughput, partially offset by a 7% decline in ore grade. Costs applicable to
sales per ounce increased 47% in the first quarter of 2005 from the first
quarter of 2004, primarily due to increased mill maintenance costs at the
recently acquired Holt McDermott mill.
At La Herradura in Mexico, gold sales increased 9% in the first quarter of
2005 from the first quarter of 2004, primarily due to a 28% increase in grade.
OPERATING HIGHLIGHTS - SOUTH AMERICA
South America Q1 2005 Q1 2004
-------------------------------------------------- ---------- ----------
Consolidated gold sales (000 ounces) 780 807
Equity gold sales (000 ounces) 403 417
Consolidated costs applicable to sales ($/ounce) $ 144 $ 142
Total cash costs ($/ounce) $ 136 $ 135
At Yanacocha in Peru, gold sales decreased 3% in the first quarter of 2005
from the first quarter of 2004 due to lower production resulting from a 6%
decrease in tons placed on the leach pads. The decrease in tons placed was
partially offset by a 36% increase in the grade of ore placed. Costs applicable
to sales per ounce increased 2% in the first quarter of 2005 from the first
quarter of 2004 primarily due to increased labor costs and commodity prices.
At Kori Kollo in Bolivia, mining was completed and the mill was closed in
October 2003, with production continuing from residual leaching. Kori Kollo will
begin processing oxide ores on leach pads from the Kori Chaca satellite pit and
reprocessing high-grade tailings on a new leach pad in the second quarter of
2005.
OPERATING HIGHLIGHTS - AUSTRALIA/NEW ZEALAND
Australia/New Zealand Q1 2005 Q1 2004
-------------------------------------------------- ---------- ----------
Consolidated sales (000 ounces) 440 544
Equity gold sales (000 ounces) 440 544
Consolidated costs applicable to sales ($/ounce) $ 303 $ 259
Total cash costs ($/ounce) $ 297 $ 251
At Pajingo, gold sales decreased 42% in the first quarter of 2005 from the
first quarter of 2004, primarily due to a 25% decline in ore grade attributable
to excess dilution due to poor ground conditions. Costs applicable to sales per
ounce increased 78% in the first quarter of 2005 from the first quarter of 2004,
primarily due to lower production and additional underground rehabilitation
work.
At Yandal, gold sales decreased 38% in the first quarter of 2005 as
compared to the first quarter of 2004, primarily due to the sale of the
Bronzewing mine in 2004. Costs applicable to sales per ounce increased 44% in
the first quarter of 2005 from the first quarter of 2004, primarily due to
higher underground development costs at Jundee.
At Tanami, gold sales decreased 20% in the first quarter of 2005 from the
first quarter of 2004, primarily due to a 20% decline in ore grade from
processing lower grade stockpiles at Groundrush and mining lower grades at the
Callie underground deposit. Costs applicable to sales per ounce increased 7% in
the first quarter of 2005 from the first quarter of 2004, primarily due to lower
production.
At Kalgoorlie, gold sales decreased 4% in the first quarter of 2005 from
the first quarter of 2004, primarily due to higher sales from inventories in
2004 that were partially offset by increased production in 2005 as a result of a
14% increase in mill throughput. Costs applicable to sales per ounce increased
7% in the first quarter of 2005 from the first quarter of 2004, primarily due to
increased consumption of reagents and grinding media as a result of increased
throughput.
At Golden Grove, less zinc concentrate and no copper concentrate were sold
during the first quarter of 2005 due to mine plan sequencing and the timing of
shipments. Costs applicable to sales per pound of zinc decreased 53% in the
first quarter of 2005 from the first quarter of 2004, primarily reflecting
higher by-product gold shipments in the first quarter of 2005.
At Martha in New Zealand, gold sales increased 95% in the first quarter of
2005 from the first quarter of 2004, primarily due to a 123% increase in ore
grade as a result of mining higher grades in the open pit. Costs applicable to
sales per ounce decreased 35% in the first quarter of 2005 from the first
quarter of 2004, primarily due to increased production, partially offset by
higher processing costs from milling harder ore. Martha is experiencing ground
stability issues in a portion of the south wall of the open pit which might
impact the ability to mine a portion of reserves remaining in the pit.
OPERATING HIGHLIGHTS - INDONESIA
Batu Hijau Q1 2005 Q1 2004
-------------------------------------------------- ---------- ----------
Consolidated copper sales (millions pounds) 100 131
Equity copper sales (millions pounds) 53 74
Consolidated costs applicable to sales
($/pound copper) $ 0.71 $ 0.49
Total cash costs ($/pound copper) $ 0.92 $ 0.70
Consolidated gold sales (000 ounces) 75 100
Equity gold sales (000 ounces) 40 56
Consolidated costs applicable to sales
($/ounce gold) $ 211 $ 127
Total cash costs ($/ounce gold) $ 207 $ 126
At Batu Hijau in Indonesia, copper and gold sales decreased 24% and 25%,
respectively, in the first quarter of 2005 from the first quarter of 2004.
Access to ore in the lower portion of the pit was temporarily restricted as a
result of pit wall sloughing and associated clean-up during the quarter. The
mine plan sequence was revised resulting in the processing of lower grade
stockpiles, some of which were scheduled to be processed later in 2005. Costs
applicable to sales per pound of copper and per ounce of gold increased 45% and
66%, respectively, during the first quarter of 2005 from the first quarter of
2004 due to lower production, increased maintenance costs and higher lime
consumption.
OPERATING HIGHLIGHTS - CENTRAL ASIA
Central Asia Q1 2005 Q1 2004
-------------------------------------------------- ---------- ----------
Consolidated gold sales (000 ounces) 34 62
Equity gold sales (000 ounces) 34 62
Consolidated costs applicable to sales ($/ounce) $ 199 $ 166
Total cash costs ($/ounce) $ 192 $ 163
At Zarafshan in Uzbekistan, gold sales decreased 39% in the first quarter
of 2005 from the first quarter of 2004, primarily due to 16% fewer tons placed
on the leach pads, from unscheduled plant downtime, and a 28% decrease in ore
grade. Costs applicable to sales per ounce increased 33% in the first quarter of
2005 from the first quarter of 2004, primarily as a result of the decrease in
production.
The Ovacik mine in Turkey was sold to a subsidiary of a Turkish group on
March 1, 2005. Operations were suspended in August 2004.
CASH, MARKETABLE SECURITIES AND DEBT
At the end of the first quarter, cash, short-term marketable securities and
other short-term investments totaled $2.2 billion, essentially offsetting
outstanding debt of $2.2 billion. Of the outstanding debt, $706 million was Batu
Hijau project finance debt that is non-recourse to Newmont.
During the first quarter, outstanding debt increased by a net $580 million.
During March 2005, the Company issued uncollateralized notes with a principal
amount of $600 million due April 2035 bearing an interest rate of 5 7/8%. The
proceeds will be used to fund capital investments, possibly including a 200
megawatt power plant in Nevada, and for general corporate purposes.
MERCHANT BANKING
Newmont Capital manages the Company's royalty and marketable securities
portfolios as well as supporting asset transactions. For the first quarter of
2005, royalty and dividend income was $18 million, up 38% from the year ago
quarter. At the end of the first quarter of 2005, the market value of the
marketable equity securities portfolio managed by Newmont Capital was $606
million, an increase of $101 million over 2004 year-end.
During the first quarter of 2005, Newmont Capital managed the following
transactions and agreements:
* closed the sale of the Ovacik mine in Turkey;
* closed the sale of the Mezcala property in Mexico;
* completed the purchase of a 9.9% interest in Shore Gold; and
* completed phase 2 drilling on the Alberta heavy oil leases.
CAPITAL PROJECT DEVELOPMENT UPDATE
The Leeville underground project in Nevada remains on schedule for initial
gold production in the fourth quarter of 2005. The production shaft is 92%
complete, at a depth of 1,673 feet. Hoisting from the nearly completed
ventilation shaft is expected to begin by the third quarter. Overall,
construction is 64% complete.
Also in Nevada, at the Phoenix project, engineering is 97% complete and
construction is 25% complete. Initial gold production is expected by early 2006
as compared to prior guidance of mid-2006.
Construction of a proposed 200 megawatt power plant in Nevada is awaiting
permits and final approvals. When completed, the coal-fired plant is expected to
reduce costs applicable to sales by up to $20 per ounce in Nevada.
At the Ahafo project in Ghana, engineering is approximately 90% complete
and construction is 30% complete. Construction of the mill foundations, the
water storage dam and the tailings storage facility is progressing. Orders have
been placed for electricity sub stations, power lines and transformers. The
project remains on schedule for initial gold production in the second half of
2006.
At Akyem in Ghana, the feasibility study update was recently completed with
a development decision expected by mid-2005.
At Boddington in Australia, work continues on the feasibility study update
with a development decision possible in 2006.
EXPLORATION, ADVANCED PROJECTS, RESEARCH & DEVELOPMENT
Exploration expenditures were $27 million in the first quarter of 2005,
compared with $21 million in the year ago quarter. Advanced projects, research
and development expenditures were $18 million in the first quarter of 2005 as
compared with $16 million in the first quarter of 2004.
In Nevada, positive results from drilling at the Phoenix project and from a
down dip high-grade extension of Gold Quarry will be further pursued this year.
In the southern region of Ahafo in Ghana, development drilling completed in
April identified mineralization 450 feet below the current $375-gold pit shell.
At the Minas Conga district in Peru, infill drilling at the Perol and
Chailhuagon deposits is intended to convert non-reserve mineralization to
reserves in 2005, and follow-up delineation drilling is planned for the
satellite Amaro target.
2005 GUIDANCE
The Company expects consolidated gold sales in the range of 8.5 - 8.7
million ounces at consolidated costs applicable to sales of $225 - $235 per
ounce in 2005. For 2005, Newmont expects equity gold sales in the range of 6.6 -
6.8 million ounces, essentially unchanged from previous guidance, at total cash
costs of $240 - $250 per ounce, slightly higher than prior guidance. In
addition, the Company expects consolidated copper sales of 695 million pounds at
consolidated costs applicable to sales of $0.48 per pound and equity copper
sales of 395 million pounds at total cash costs of $0.77 per pound in 2005.
Newmont will discontinue providing guidance for equity sales and total cash
costs beginning in the second quarter of 2005. The Company reiterated that gold
sales will be weighted to the second half of the year as new stripping capacity
is put into service, generally higher grades are accessed, and Leeville begins
production.
In a change from the prior practice of reporting exploration, research and
development as a single line item in the income statement, Newmont is now
reporting exploration separately from advanced projects, research and
development for greater transparency. For 2005, exploration expenditures are
expected in the range of $150-$160 million, while advanced projects, research
and development expenditures are estimated in the range of $60-$70 million.
Exploration expenditures remain in line with prior guidance while efforts will
be focused in Ghana, Peru and Nevada.
Consolidated capital expenditures are expected to be $1.00 - $1.25 billion.
For site by site details, please refer to the supplemental capital expenditures,
depreciation, depletion and amortization and exploration worksheet provided with
the news release on the Newmont web site, under Investor Information/News
Releases.
STATEMENTS OF CONSOLIDATED INCOME
Three Months Ended
March 31,
------------------------
(unaudited, in millions except per share) 2005 2004
-------------------------------------------------- ---------- ----------
Revenues
Sales -- gold, net $ 844 $ 940
Sales -- base metals, net 117 182
961 1,122
Costs and expenses
Costs applicable to sales (exclusive
of depreciation, depletion and
amortization shown separately below)
Gold 477 501
Base metals 73 74
Depreciation, depletion and amortization 168 182
Exploration 27 21
Advanced projects, research and development 18 16
General and administrative 31 27
Other 24 5
818 826
Other income (expense)
Other income 68 28
Interest expense (21) (26)
47 2
Pre-tax income before minority interest,
equity income of affiliates and
cumulative effect of a change
in accounting principle 190 298
Income tax expense (51) (87)
Minority interest in income of subsidiaries (59) (79)
Equity income of affiliates 4 2
Income before cumulative effect
of a change in accounting principle 84 134
Cumulative effect of a change
in accounting principle -- (47)
Net income applicable to common shares $ 84 $ 87
Income before cumulative effect
of a change in accounting principle
per common share, basic and diluted $ 0.19 $ 0.30
Cumulative effect of a change
in accounting principle per common share,
basic and diluted -- (0.10)
Net income per common share, basic and diluted $ 0.19 $ 0.20
Basic weighted-average common
shares outstanding 446 443
Diluted weighted-average common
shares outstanding 448 447
Cash dividends declared per common share $ 0.10 $ 0.05
CONSOLIDATED BALANCE SHEETS
March 31, December 31,
2005 2004
------------ ------------
(unaudited, in millions)
ASSETS
Cash and cash equivalents $ 1,059 $ 783
Marketable securities and
other short-term investments 1,110 943
Trade receivables 104 79
Accounts receivable 153 131
Inventories 289 264
Stockpiles and ore on leach pads 215 232
Deferred stripping costs 40 45
Deferred income tax assets 176 173
Other current assets 69 71
Current assets 3,215 2,721
Property, plant and mine development 5,400 5,361
Investments 515 386
Long-term stockpiles and ore on leach pads 541 525
Deferred stripping costs 94 80
Deferred income tax assets 517 492
Other long-term assets 177 185
Goodwill 3,025 3,026
Total assets $ 13,484 $ 12,776
LIABILITIES
Current portion of long-term debt $ 292 $ 286
Accounts payable 216 231
Employee-related benefits 119 134
Other current liabilities 482 450
Current liabilities 1,109 1,101
Long-term debt 1,890 1,316
Reclamation and remediation liabilities 430 432
Deferred revenue from sale of future production 47 47
Deferred income tax liabilities 491 476
Employee-related benefits 255 250
Advanced stripping costs 80 103
Other long-term liabilities 350 338
Total liabilities 4,652 4,063
Minority interest in subsidiaries 811 775
STOCKHOLDERS' EQUITY
Total stockholders' equity 8,021 7,938
Total liabilities and stockholders' equity $ 13,484 $ 12,776
STATEMENT OF CONSOLIDATED CASH FLOWS
Three Months Ended
March 31,
----------------------------
2005 2004
------------ ------------
(unaudited, in millions)
Operating activities:
Net income $ 84 $ 87
Adjustments to reconcile net income
to net cash provided by operating activities:
Depreciation, depletion and amortization 168 182
Accretion of accumulated
reclamation obligations 7 7
Amortization of deferred
stripping costs, net (34) (15)
Deferred income taxes (6) 23
Foreign currency exchange loss 3 --
Minority interest expense 59 79
Equity income of affiliates,
net of dividends (4) --
Write-down of assets 6 5
Cumulative effect of change
in accounting principle, net -- 47
Gain on derivative instruments, net (2) (1)
Gain on asset sales, net (38) (7)
Other operating adjustments 23 (4)
(Increase) decrease in operating assets:
Accounts receivable (20) (59)
Inventories, stockpiles and ore
on leach pads (22) 23
Other assets 4 (16)
Increase (decrease) in operating liabilities:
Accounts payable and other
accrued liabilities (34) 9
Reclamation liabilities (6) (7)
Net cash provided by operating activities 188 353
Investing activities:
Additions to property, plant
and mine development (242) (166)
Investments in marketable debt
and equity securities (775) (657)
Proceeds from sale of marketable debt
and equity securities 546 276
Cash recorded upon consolidation
of Batu Hijau -- 82
Proceeds from sale of assets 52 11
Net cash used in investing activities (419) (454)
Financing activities:
Proceeds from debt, net 582 --
Repayment of debt (15) (22)
Dividends paid on common stock (45) (22)
Dividends paid to minority interests (16) (29)
Proceeds from stock issuance 4 19
Change in restricted cash and other (1) 8
Net cash provided by (used in)
financing activities 509 (46)
Effect of exchange rate changes on
cash (gain) loss (2) 1
Net change in cash and cash equivalents 276 (146)
Cash and cash equivalents at
beginning of period 783 1,131
Cash and cash equivalents at
end of period $ 1,059 $ 985
2005 GUIDANCE
Consolidated
Total Costs
Consolidated Gold Equity Cash Consolidated Applicable
and Copper Sales Costs Sales to Sales
----------------- ------------- ----------- -------------- -----------
North America
Gold (000 oz) ($/oz) (000 oz) ($/oz)
Nevada 2,550 $290 2,640 $295
Golden Giant 155 $330 155 $335
Holloway 85 $385 90 $400
La Herradura 80 $160 80 $160
Sub-total 2,870 $291 2,965 $295
South America
Gold (000 oz) ($/oz) (000 oz) ($/oz)
Yanacocha 1,500 $145 2,920 $150
Kori Kollo 80 $160 85 $175
Sub-total 1,580 $145 3,005 $150
Australia(1)/
New Zealand
Gold (000 oz) ($/oz) (000 oz) ($/oz)
Kalgoorlie 440 $335 440 $335
Pajingo 200 $270 200 $275
Tanami 480 $300 480 $305
Yandal 325 $320 325 $330
Martha 155 $220 155 $225
Sub-total 1,600 $302 1,600 $305
Indonesia
Gold (000 oz) ($/oz) (000 oz) ($/oz)
Batu Hijau 420 $135 800 $135
Central Asia
Gold (000 oz) ($/oz) (000 oz) ($/oz)
Zarafshan 155 $220 155 $220
TOTAL GOLD 6,600 - 6,800 $240 - $250 8,500 - 8,700 $225 - $235
Copper
and Zinc (million lbs) ($/lb) (million lbs) ($/lb)
Batu Hijau
- Copper 335 $0.66 635 $0.45
Golden Grove
- Copper 60 $1.42 60 $0.89
Golden Grove
- Zinc 130 $0.34 130 $0.12
Consolidated Financial Guidance
Royalty and dividend income $63-$68
Depreciation, depletion & amortization $710-$740
Exploration $150-$160
Advanced projects, research and development $60-$70
General and administrative $115-$125
Interest expense, net (2) $115-$120
Tax rate (assuming $435/oz gold) 28%-32%
Capital expenditures $1,000-$1,250
Notes:
1. Total cash costs and consolidated costs applicable to sales are based
on an A$1 = $0.79 exchange rate assumption.
2. Net interest expense guidance for 2005 reflects the impact of interest
expense associated with the issuance of $600 million notes due 2035 as
well as higher interest income from higher cash balances and yields.
COMPARISON OF EQUITY CASH COSTS PER OUNCE AND COSTS APPLICABLE TO SALES PER
OUNCE
Q1 2005 Q1 2004
----------------------- -----------------------
Costs Costs
Equity Applicable Equity Applicable
Cash Cost to Sales Cash Cost to Sales
Per Ounce Per Ounce Per Ounce Per Ounce
---------- ---------- ---------- ----------
North America
Nevada $ 308 $ 309 $ 287 $ 295
Golden Giant $ 338 $ 340 $ 245 $ 245
Holloway $ 473 $ 473 $ 322 $ 322
La Herradura $ 206 $ 207 $ 128 $ 130
Sub-total $ 312 $ 313 $ 281 $ 288
South America
Yanacocha $ 135 $ 143 $ 133 $ 140
Kori Kollo $ 232 $ 279 $ 266 $ 298
Sub-total $ 136 $ 144 $ 135 $ 142
Australia/
New Zealand
Pajingo $ 343 $ 348 $ 194 $ 195
Yandal $ 329 $ 341 $ 231 $ 237
Tanami $ 284 $ 291 $ 256 $ 272
Kalgoorlie $ 322 $ 325 $ 300 $ 303
Martha $ 164 $ 166 $ 251 $ 255
Sub-total $ 297 $ 303 $ 251 $ 259
Indonesia
Batu Hijau $ 207 $ 211 $ 126 $ 127
Minahasa -- -- $ 307 $ 312
Sub-total $ 207 $ 211 $ 183 $ 167
Central Asia
Zarafshan $ 192 $ 199 $ 148 $ 150
Ovacik -- -- $ 302 $ 317
Sub-total $ 192 $ 199 $ 163 $ 166
Newmont $ 257 $ 239 $ 230 $ 219
COMPARISON OF EQUITY GOLD SALES OUNCES AND CONSOLIDATED GOLD SALES OUNCES
Q1 2005 Q1 2004
--------------------------- ---------------------------
Consolidated Consolidated
Equity Sales Sales Equity Sales Sales
(000 oz) (000 oz) (000 oz) (000 oz)
------------ ------------ ------------ ------------
North America
Nevada 557 588 618 653
Golden Giant 38 38 53 53
Holloway 20 20 19 19
La Herradura 19 19 17 17
Sub-total 634 665 707 742
South America
Yanacocha 397 773 410 799
Kori Kollo 6 7 7 8
Sub-total 403 780 417 807
Australia/
New Zealand
Pajingo 44 44 75 75
Yandal 88 88 141 141
Tanami 147 147 183 183
Kalgoorlie 117 117 122 122
Martha 44 44 23 23
Sub-total 440 440 544 544
Indonesia
Batu Hijau 40 75 56 100
Minahasa -- -- 26 28
Sub-total 40 75 82 128
Central Asia
Zarafshan 34 34 56 56
Ovacik -- -- 6 6
Sub-total 34 34 62 62
Average Gold 1,551 1,994 1,812 2,283
OPERATING STATISTICS SUMMARY
Australia/
North America South America New Zealand
Three Months ------------------- ------------------- -------------------
Ended March 31, 2005 2004 2005 2004 2005 2004
------------------------- -------- -------- -------- -------- -------- --------
Gold Summary
Ounces sold (000) 665 742 780 807 440 544
Equity ounces
sold (000) 634 707 403 417 440 544
Cost applicable
to sales
(in millions) $ 208 $ 214 $ 113 $ 114 $ 133 $ 141
Cost applicable
to sales
per ounce $ 313 $ 288 $ 144 $ 142 $ 303 $ 259
Depreciation
and amortization
(in millions) $ 37 $ 41 $ 47 $ 55 $ 31 $ 38
Depreciation and
amortization
per ounce $ 56 $ 56 $ 61 $ 68 $ 71 $ 69
Indonesia (1) Central Asia (2) Total
Three Months ------------------- ------------------- -------------------
Ended March 31, 2005 2004 2005 2004 2005 2004
------------------------- -------- -------- -------- -------- -------- --------
Gold Summary
Ounces sold (000) 75 128 34 62 1,994 2,283
Equity ounces
sold (000) 40 83 34 62 1,551 1,812
Cost applicable
to sales
(in millions) $ 16 $ 22 $ 7 $ 10 $ 477 $ 501
Cost applicable
to sales
per ounce $ 211 $ 167 $ 199 $ 166 $ 239 $ 219
Depreciation
and amortization
(in millions) $ 6 $ 7 $ 2 $ 4 $ 123 $ 145
Depreciation and
amortization
per ounce $ 84 $ 55 $ 70 $ 63 $ 62 $ 64
Average realized
price per ounce $ 425 $ 412
Golden Grove Batu Hijau Total
-------------------- ------------------- -------------------
2005 2004 2005 2004 2005 2004
-------- -------- -------- -------- -------- --------
Copper Summary
Pounds sold (000) -- 2,265 100,088 131,233 100,088 133,498
Equity pounds
sold (000) -- 2,265 52,922 73,819 52,922 76,084
Cost applicable
to sales
(in millions) $ (1) $ 1 $ 71 $ 65 $ 70 $ 66
Cost applicable
to sales
per pound -- $ 0.25 $ 0.71 $ 0.49 $ 0.70 $ 0.49
Depreciation
and amortization
(in millions) -- -- $ 26 $ 21 $ 26 $ 21
Depreciation and
amortization
per pound -- $ 0.10 $ 0.27 $ 0.17 $ 0.27 $ 0.16
Average realized
price per pound $ 1.34 $ 1.50
(1) Indonesia includes Batu Hijau in 2005 and Batu Hijau and Minahasa in
2004
(2) Central Asia/Europe includes Zarafshan (Uzbekistan) in 2005 and
Zarafshan (Uzbekistan) and Ovacik (Turkey) in 2004
GOLD PRODUCTION - AMERICAS
Nevada Canada (1) Other (2)
Three Months -------------------- ------------------- -------------------
Ended March 31, 2005 2004 2005 2004 2005 2004
------------------------- -------- -------- -------- -------- -------- --------
Tons Mined
(000 dry
short tons):
Open-Pit 51,750 48,421 n/a n/a 2,753 2,627
Underground 410 356 271 270 n/a n/a
Tons Milled/
Processed (000):
Oxide 1,302 1,067 271 263 n/a n/a
Refractory 2,288 2,092 n/a n/a n/a n/a
Leach 5,338 3,493 n/a n/a 886 989
Average Ore Grade
(oz/ ton):
Oxide 0.107 0.153 0.215 0.265 n/a n/a
Refractory 0.193 0.191 n/a n/a n/a n/a
Leach 0.026 0.025 n/a n/a 0.032 0.025
Average Mill
Recovery Rate:
Oxide 72.7% 76.6% 94.6% 94.9% n/a n/a
Refractory 89.6% 90.8% n/a n/a n/a n/a
Ounces Produced
(000): 575.7 592.5 58.1 69.1 18.9 17.3
Ounces Sold (000): 588.6 652.6 57.8 71.9 18.9 17.3
Equity Ounces
Produced (000):
Oxide 104.0 126.1 58.1 69.1 n/a n/a
Refractory 362.3 341.3 n/a n/a n/a n/a
Leach 78.3 89.9 n/a n/a 18.9 17.3
Total 544.6 557.3 58.1 69.1 18.9 17.3
Equity Ounces
Sold (000) 557.5 617.4 57.8 71.9 18.9 17.3
Production Costs
Per Ounce:
Direct mining
and production
costs $ 330 $ 318 $ 383 $ 262 $ 208 $ 132
Capitalized
mining and
other (32) (39) 1 1 (2) (4)
Cash operating
costs 298 279 384 263 206 128
Royalties and
production
taxes 10 8 1 2 -- --
Total cash costs 308 287 385 265 206 128
Reclamation and
mine closure
costs 2 2 3 2 1 2
Depreciation
and amortization 55 57 97 70 62 68
Total production
costs $ 365 $ 346 $ 485 $ 337 $ 269 $ 198
Cost applicable
to sales
(in millions) $ 182 $ 193 $ 22 $ 19 $ 4 $ 2
Cost applicable
to sales per
ounce sold $ 309 $ 295 $ 386 $ 265 $ 207 $ 130
Depreciation and
amortization
(in millions) $ 30 $ 35 $ 6 $ 5 $ 1 $ 1
Depreciation and
amortization
per ounce sold $ 52 $ 54 $ 98 $ 71 $ 62 $ 68
(1) Includes Golden Giant and Holloway
(2) Other includes La Herradura
Yanacocha, Peru Kori Kollo, Bolivia
Three Months -------------------- -------------------
Ended March 31, 2005 2004 2005 2004
------------------------- -------- -------- -------- --------
Tons Mined
(000 dry
short tons):
Open-Pit 45,739 46,110 n/a n/a
Underground n/a n/a n/a n/a
Tons Milled/
Processed (000):
Oxide n/a n/a n/a n/a
Refractory n/a n/a n/a n/a
Leach 26,201 27,808 n/a n/a
Average Ore Grade
(oz/ ton):
Oxide n/a n/a n/a n/a
Refractory n/a n/a n/a n/a
Leach 0.028 0.021 n/a n/a
Average Mill
Recovery Rate:
Oxide n/a n/a n/a n/a
Refractory n/a n/a n/a n/a
Ounces Produced
(000): 795.9 803.6 7.0 7.6
Ounces Sold (000): 772.9 799.0 6.9 8.2
Equity Ounces
Produced (000):
Oxide n/a n/a n/a n/a
Refractory n/a n/a n/a n/a
Leach 408.7 412.6 6.1 6.7
Total 408.7 412.6 6.1 6.7
Equity Ounces
Sold (000) 396.9 410.3 6.1 7.2
Production Costs
Per Ounce:
Direct mining
and production
costs $ 136 $ 133 $ 238 $ 261
Capitalized
mining and
other (8) (6) (24) (11)
Cash operating
costs 128 127 214 250
Royalties and
production
taxes 7 6 18 16
Total cash costs 135 133 232 266
Reclamation and
mine closure
costs 2 2 47 32
Depreciation
and amortization 65 71 37 129
Total production
costs $ 202 $ 206 $ 316 $ 427
Cost applicable
to sales
(in millions) $ 111 $ 112 $ 2 $ 2
Cost applicable
to sales per
ounce sold $ 143 $ 140 $ 279 $ 298
Depreciation and
amortization
(in millions) $ 47 $ 54 -- $ 1
Depreciation and
amortization
per ounce sold $ 61 $ 68 $ 37 $ 129
GOLD PRODUCTION - AUSTRALIA/NEW ZEALAND
Pajingo Yandal (1) Tanami
Three Months --------------------- --------------------- --------------------
Ended March 31, 2005 2004 2005 2004 2005 2004
------------------------- -------- -------- -------- -------- -------- --------
Tons Mined
(000 dry
short tons) 177 174 1,978 2,635 531 3,743
Tons Milled/
Processed (000) 168 185 635 901 1,133 1,095
Average Ore Grade
(oz/ton) 0.258 0.342 0.146 0.134 0.129 0.161
Average Mill
Recovery Rate 97.0% 96.3% 93.0% 93.3% 95.2% 95.8%
Ounces Produced
(000) 43.9 66.2 88.0 118.9 140.8 165.4
Ounces Sold (000) 43.9 75.2 87.9 141.1 146.9 183.1
Equity Ounces
Produced (000) 43.9 66.2 88.0 118.9 140.8 165.4
Equity Ounces
Sold (000) 43.9 75.2 87.9 141.1 146.9 183.1
Production Costs
Per Ounce:
Direct mining
and production
costs $ 336 $ 190 $ 320 $ 224 $ 264 $ 235
Capitalized
mining and
other (8) (8) (1) (1) -- (4)
Cash operating
costs 328 182 319 223 264 231
Royalties and
production
taxes 15 12 10 8 20 25
Total cash costs 343 194 329 231 284 256
Reclamation and
mine closure
costs 2 (1) 4 6 3 --
Depreciation
and
amortization 139 120 75 87 61 55
Total production
costs $ 484 $ 313 $ 408 $ 324 $ 348 $ 311
Cost applicable
to sales
(in millions) $ 15 $ 15 $ 30 $ 33 $ 43 $ 50
Cost applicable
to sales per
ounce sold $ 348 $ 195 $ 341 $ 237 $ 291 $ 272
Depreciation and
amortization
(in millions) $ 6 $ 9 $ 6 $ 12 $ 9 $ 10
Depreciation and
amortization
per ounce sold $ 139 $ 120 $ 75 $ 87 $ 61 $ 55
(1) 2005 includes Jundee. 2004 includes Jundee and Bronzewing.
Kalgoorlie Martha
Three Months -------------------- ---------------------
Ended March 31, 2005 2004 2005 2004
------------------------- -------- -------- -------- --------
Tons Mined
(000 dry
short tons) 10,397 11,864 458 1,146
Tons Milled/
Processed (000) 1,829 1,600 332 368
Average Ore Grade
(oz/ton) 0.077 0.073 0.148 0.066
Average Mill
Recovery Rate 88.5% 87.3% 92.9% 90.3%
Ounces Produced
(000) 116.6 105.9 45.1 22.1
Ounces Sold (000) 116.5 121.9 44.1 22.6
Equity Ounces
Produced (000) 116.6 105.9 45.1 22.1
Equity Ounces
Sold (000) 116.5 121.9 44.1 22.6
Production Costs
Per Ounce:
Direct mining
and production
costs $ 290 $ 297 $ 215 $ 422
Capitalized
mining and
other 21 (6) (51) (171)
Cash operating
costs 311 291 164 251
Royalties and
production
taxes 11 9 -- --
Total cash costs 322 300 164 251
Reclamation and
mine closure
costs 3 3 2 2
Depreciation
and
amortization 39 29 107 135
Total production
costs $ 364 $ 332 $ 273 $ 388
Cost applicable
to sales
(in millions) $ 38 $ 37 $ 7 $ 6
Cost applicable
to sales per
ounce sold $ 325 $ 303 $ 166 $ 255
Depreciation and
amortization
(in millions) $ 5 $ 4 $ 5 $ 3
Depreciation and
amortization
per ounce sold $ 39 $ 29 $ 107 $ 136
GOLD PRODUCTION - OTHER
Batu Hijau, Minahasa,
Indonesia Indonesia
--------------------- -------------------
Three Months Ended March 31, 2005 2004 2005 2004
---------------------------------------- -------- -------- -------- --------
Tons Mined (000 dry
short tons) 60,198 57,920 n/a n/a
Tons Milled/Processed (000):
Leach n/a n/a n/a n/a
Mill 12,287 13,078 -- 166
Average Ore Grade (oz/ton) 0.008 0.009 -- 0.152
Average Mill Recovery Rate 75.2% 78.9% -- 90.1%
Ounces Produced (000) 74.2 95.1 -- 22.3
Ounces Sold (000) 75.4 100.2 -- 27.9
Equity Ounces Produced (000) 39.2 53.5 -- 21.0
Equity Ounces Sold (000) 39.9 56.4 -- 26.2
Production Costs Per Ounce:
Direct mining and
production costs $ 261 $ 104 -- $ 296
Capitalized mining and other (62) 13 -- 3
Cash operating costs 199 117 -- 299
Royalties and production taxes 8 9 -- 8
Total cash costs 207 126 -- 307
Reclamation and mine
closure costs 3 2 -- 5
Depreciation and amortization 82 43 -- 96
Total production costs $ 292 $ 171 -- $ 408
Cost applicable to sales
(in millions) $ 16 $ 13 -- $ 9
Cost applicable to sales
per ounce sold $ 211 $ 127 -- $ 312
Depreciation and amortization
(in millions) $ 6 $ 4 -- $ 3
Depreciation and amortization
per ounce sold $ 84 $ 43 -- $ 96
Zarafshan, Ovacik,
Uzbekistan Turkey
------------------- -------------------
Three Months Ended March 31, 2005 2004 2005 2004
---------------------------------------- -------- -------- -------- --------
Tons Mined (000 dry
short tons) n/a n/a -- 1,482
Tons Milled/Processed (000):
Leach 1,663 1,979 n/a n/a
Mill n/a n/a -- 116
Average Ore Grade (oz/ton) 0.034 0.047 -- 0.272
Average Mill Recovery Rate n/a n/a -- 94.4%
Ounces Produced (000) 34.3 61.1 -- 30.0
Ounces Sold (000) 34.2 55.9 -- 5.9
Equity Ounces Produced (000) 34.3 61.1 -- 30.0
Equity Ounces Sold (000) 34.2 55.9 -- 5.9
Production Costs Per Ounce:
Direct mining and
production costs $ 191 $ 147 -- $ 398
Capitalized mining and other 1 1 -- (113)
Cash operating costs 192 148 -- 285
Royalties and production taxes -- -- -- 17
Total cash costs 192 148 -- 302
Reclamation and mine
closure costs 2 2 -- (4)
Depreciation and amortization 69 48 -- 200
Total production costs $ 263 $ 198 -- $ 498
Cost applicable to sales
(in millions) $ 7 $ 8 -- $ 2
Cost applicable to sales
per ounce sold $ 199 $ 150 -- $ 317
Depreciation and amortization
(in millions) $ 2 $ 3 -- $ 1
Depreciation and amortization
per ounce sold $ 70 $ 48 -- $ 201
BASE METAL SUMMARY - BATU HIJAU AND GOLDEN GROVE
Three Months Ended March 31,
-----------------------------
Batu Hijau 2005 2004
--------------------------------------------- ------------- -------------
Total tons mined (000) 60,198 57,920
Dry tons processed (000) 12,287 13,078
Average copper grade 0.53% 0.64%
Average recovery rate 78.3% 85.6%
Copper produced (000 lbs) 103,123 141,069
Copper sold (000 lbs) 100,088 131,233
Equity copper produced (000 lbs) 54,526 79,351
Equity copper sold (000 lbs) 52,922 73,819
Realized copper price per pound $ 1.33 $ 1.50
Total cash cost per equity pound (1) $ 0.92 $ 0.70
Noncash cost per equity pound 0.27 0.17
Total production cost
per equity pound (1) $ 1.19 $ 0.87
Cost applicable to sales
(in millions) $ 71 $ 65
Cost applicable to sales
per pound sold (1) $ 0.71 $ 0.49
Depreciation and amortization
(in millions) $ 27 $ 21
Depreciation and amortization
per pound sold $ 0.27 $ 0.17
Three Months Ended March 31,
-----------------------------
Golden Grove 2005 2004
--------------------------------------------- ------------- -------------
Total tons mined (000) 320 309
Dry tons processed (000) 320 307
Average copper grade 4.62% 3.17%
Average copper recovery rate 92.1% 86.6%
Copper produced (000 lbs) 12,681 3,555
Copper sold (000 lbs) -- 2,265
Realized copper price per pound -- $ 1.37
Copper cash cost per pound (1) -- $ 0.46
Cost applicable to sales (in millions) $ (1) $ 1
Cost applicable to sales
per pound sold (1) -- $ 0.25
Depreciation and amortization
(in millions) -- --
Depreciation and amortization
per pound sold -- $ 0.10
Average zinc grade 11.67% 10.42%
Average zinc recovery rate 92.2% 90.7%
Zinc produced (000 lbs) 30,036 40,294
Zinc sold (000 lbs) 29,091 45,448
Realized zinc price per pound $ 0.53 $ 0.47
Zinc cash cost per pound (1) $ 0.36 $ 0.38
Cost applicable to sales (in millions) $ 3 $ 8
Cost applicable to sales
per pound sold (1) $ 0.09 $ 0.19
Depreciation and amortization
(in millions) $ 4 $ 5
Depreciation and amortization
per pound sold $ 0.14 $ 0.11
By-product sales
Gold (000 ounces) 8.8 0.2
Silver (000 ounces) -- 13.8
(1) Total cash cost per pound for base metals includes smelting and
refining costs. Smelting and refining costs are deducted from revenue
in the Company's financial statements and are therefore not included in
costs applicable to sales.
RECONCILIATION OF COSTS APPLICABLE TO TOTAL CASH COSTS PER OUNCE AND PER
POUND, AND TOTAL PRODUCTION COSTS PER OUNCE AND PER POUND (DOLLARS IN
MILLIONS EXCEPT PER OUNCE AMOUNTS)
The total cash costs and total production costs per ounce or pound are
non-GAAP performance measures that are intended to provide investors with
information about the cash generating capacities and profitability of Newmont's
mining operations. Newmont's management uses these measures for the same purpose
and for monitoring the performance of its mining operations. These measures
differ from measures determined in accordance with GAAP and should not be
considered in isolation or as a substitute for measures of performance or
liquidity determined in accordance with GAAP. These measures were developed in
conjunction with gold mining companies associated with the Gold Institute in an
effort to provide a level of comparability; however, Newmont's measures may not
be comparable to similarly-titled measures of other companies.
Three Months Ended Golden La North
March 31, 2005 Nevada Giant Holloway Canada Herradura America
-------------------- ---------- ---------- ---------- ---------- ---------- ----------
Costs applicable
to sales
under GAAP 182.0 12.9 9.5 22.4 3.9 208.3
Minority
interest -- -- -- -- -- --
Accretion
expense (1.5) (0.1) -- (0.1) -- (1.6)
Write-down
of
inventories -- -- -- -- -- --
Purchased
ore and other (8.9) 0.1 -- 0.1 -- (8.8)
Total cash cost
for per ounce
calculations 171.6 12.9 9.5 22.4 3.9 197.9
Accretion
expense
and other 1.5 0.1 -- 0.1 -- 1.6
Depreciation,
depletion
and
amortization 30.2 2.8 2.9 5.7 1.2 37.1
Minority
interest and
other -- -- -- -- -- --
Total production
cost for
per ounce
calculations 203.3 15.8 12.4 28.2 5.1 236.6
Equity ounces
sold (000) 557.5 37.8 20.0 57.8 18.9 634.2
Equity cash
cost per
ounce sold $ 308 $ 338 $ 473 $ 385 $ 206 $ 312
Equity total
production cost
per ounce sold $ 365 $ 414 $ 619 $ 485 $ 269 $ 373
Three Months Ended Kori South
March 31, 2005 Yanacocha Kollo America Pajingo Yandal Tanami
-------------------- ---------- ---------- ---------- ---------- ---------- ----------
Costs
applicable
to sales
under GAAP $ 110.6 $ 1.9 $ 112.5 $ 15.3 $ 30.0 $ 42.7
Minority
interest $ (55.9) (0.2) $ (56.1) -- -- --
Accretion
expense $ (0.9) (0.3) $ (1.2) (0.1) (0.4) (0.4)
Write-down
of
inventories -- -- -- (0.1) $ (0.7) $ (0.6)
Purchased
ore and
other (0.3) -- (0.3) -- -- --
Total cash cost
for per ounce
calculations $ 53.5 $ 1.4 $ 54.9 $ 15.1 $ 28.9 $ 41.7
Accretion
expense
and other $ 0.9 $ 0.3 $ 1.2 0.1 0.4 0.4
Depreciation,
depletion
and
amortization $ 46.9 0.3 $ 47.2 $ 6.1 $ 6.5 $ 9.0
Minority
interest
and other $ (21.2) -- $ (21.2) -- -- --
Total
production
cost for
per ounce
calculations $ 80.1 $ 2.0 $ 82.1 $ 21.3 $ 35.8 $ 51.1
Equity ounces
sold (000) 396.9 6.1 403.0 43.9 87.9 146.9
Equity cash
cost per
ounce sold $ 135 $ 232 $ 136 $ 343 $ 329 $ 284
Equity total
production cost
per ounce sold $ 202 $ 316 $ 203 $ 484 $ 408 $ 348
Three Months Ended Australia/ Batu
March 31, 2005 Kalgoorlie Martha New Zealand Hijau Minahasa Indonesia
-------------------- ---------- ---------- ----------- ---------- ---------- ----------
Costs
applicable
to sales
under GAAP $ 37.8 $ 7.3 $ 133.1 $ 15.9 $ 0.0 $ 15.9
Minority
interest -- -- -- $ (7.7) -- $ (7.7)
Accretion
expense (0.3) (0.1) (1.3) (0.1) -- (0.1)
Write-down
of
inventories -- -- $ (1.4) -- -- --
Purchased
ore and
other -- -- -- 0.2 -- 0.2
Total cash cost
for per ounce
calculations $ 37.5 $ 7.2 $ 130.4 $ 8.3 -- $ 8.3
Accretion
expense
and other 0.3 0.1 1.3 0.1 -- 0.1
Depreciation,
depletion
and
amortization $ 4.6 $ 4.7 $ 30.9 $ 6.3 -- $ 6.3
Minority
interest
and other -- -- -- $ (3.0) -- $ (3.0)
Total production
cost for
per ounce
calculations $ 42.4 $ 12.0 $ 162.6 $ 11.7 $ 0.0 $ 11.7
Equity ounces
sold (000) 116.5 44.1 439.3 39.9 -- 39.9
Equity cash
cost per
ounce sold $ 322 $ 164 $ 297 $ 207 $ 0 $ 207
Equity total
production
cost per
ounce sold $ 364 $ 273 $ 370 $ 292 $ 0 $ 292
Three Months Ended Central Asia/
March 31, 2005 Zarafshan Ovacik Europe Total Gold
-------------------- ------------- ------------- ------------- -------------
Costs
applicable
to sales
under GAAP $ 6.9 $ 0.0 $ 6.9 $ 476.7
Minority
interest -- -- -- $ (63.8)
Accretion
expense $ (0.1) -- $ (0.1) $ (4.3)
Write-down
of
inventories -- -- -- $ (1.4)
Purchased
ore and
other $ (0.2) -- $ (0.2) $ (9.1)
Total cash cost
for per ounce
calculations $ 6.6 -- $ 6.6 $ 398.1
Accretion
expense
and other $ 0.1 -- $ 0.1 $ 4.3
Depreciation,
depletion
and
amortization $ 2.4 $ 1.7 $ 4.1 $ 125.6
Minority
interest
and other -- -- -- $ (24.2)
Total production
cost for
per ounce
calculations $ 9.1 $ 1.7 $ 10.8 $ 503.8
Equity ounces
sold (000)(1) 34.2 -- 34.2 1,550.6
Equity cash cost
per ounce sold $ 192 $ 0 $ 192 $ 257
Equity total
production cost
per ounce sold $ 263 $ 0 $ 263 $ 325
(1) Excludes 8.8 thousand ounces from Golden Grove.
Three Months Ended Golden La North
March 31, 2004 Nevada Giant Holloway Canada Herradura America
-------------------- ---------- ---------- ---------- ---------- ---------- ----------
Costs
applicable
to sales
under GAAP $ 192.7 $ 12.9 $ 6.2 $ 19.1 $ 2.2 $ 214.0
Minority
interest -- -- -- -- -- --
Accretion
expense $ (1.4) $ (0.1) -- $ (0.1) -- $ (1.5)
Write-down
of
inventories -- -- -- -- -- --
Purchased
ore and
other $ (14.1) $ 0.1 -- $ 0.1 -- $ (14.0)
Total cash
cost for
per ounce
calculations $ 177.2 $ 12.9 $ 6.2 $ 19.1 $ 2.2 $ 198.5
Accretion
expense
and other $ 1.4 $ 0.1 -- $ 0.1 -- $ 1.5
Depreciation,
depletion
and
amortization $ 35.1 $ 3.3 $ 1.8 $ 5.1 $ 1.2 $ 41.4
Minority
interest
and other -- -- -- -- -- --
Total
production
cost for
per ounce
calculations $ 213.7 $ 16.3 $ 8.0 $ 24.3 $ 3.4 $ 241.4
Equity
ounces
sold (000) 617.4 52.7 19.2 71.9 17.3 706.6
Equity cash
cost per
ounce sold $ 287 $ 245 $ 322 $ 265 $ 128 $ 281
Equity total
production
cost per
ounce sold $ 346 $ 308 $ 417 $ 337 $ 198 $ 341
Three Months Ended Kori South
March 31, 2004 Yanacocha Kollo America Pajingo Yandal Tanami
-------------------- ---------- ---------- ---------- ---------- ---------- ----------
Costs
applicable
to sales
under GAAP $ 111.9 $ 2.4 $ 114.3 $ 14.7 $ 33.4 $ 49.8
Minority
interest $ (56.4) $ (0.3) $ (56.7) -- -- --
Accretion
expense $ (0.8) $ (0.2) $ (1.0) $ (0.1) $ (0.9) $ (0.2)
Write-down
of
inventories -- -- -- -- -- $ (2.7)
Purchased
ore
and other $ (0.1) -- $ (0.1) -- -- --
Total cash
cost for
per ounce
calculations $ 54.6 $ 1.9 $ 56.5 $ 14.6 $ 32.5 $ 46.9
Accretion
expense
and other $ 0.7 $ 0.2 $ 0.9 $ (0.1) $ 0.9 --
Depreciation,
depletion
and
amortization $ 54.3 $ 1.1 $ 55.4 $ 9.1 $ 12.3 $ 10.0
Minority
interest
and other $ (25.1) $ (0.1) $ (25.2) -- -- --
Total
production
cost for
per ounce
calculations $ 84.5 $ 3.1 $ 87.6 $ 23.6 $ 45.7 $ 56.9
Equity ounces
sold (000) 410.3 7.2 417.5 75.2 141.1 183.1
Equity cash
cost per
ounce sold $ 133 $ 266 $ 135 $ 194 $ 231 $ 256
Equity total
production
cost per
ounce sold $ 206 $ 427 $ 210 $ 313 $ 324 $ 311
Three Months Ended Australia/ Batu
March 31, 2004 Kalgoorlie Martha New Zealand Hijau Minahasa Indonesia
-------------------- ---------- ---------- ----------- ---------- ---------- ----------
Costs
applicable
to sales
under GAAP $ 37.0 $ 5.8 $ 140.7 $ 12.7 $ 8.7 $ 21.4
Minority
interest -- -- -- $ (5.8) -- $ (5.8)
Accretion
expense $ (0.4) $ (0.1) $ (1.7) $ (0.1) $ (0.1) $ (0.2)
Write-down
of
inventories -- -- $ (2.7) -- -- --
Purchased
ore
and other -- -- -- $ 0.4 $ (0.5) $ (0.1)
Total cash
cost for
per ounce
calculations $ 36.6 $ 5.7 $ 136.3 $ 7.2 $ 8.1 $ 15.3
Accretion
expense
and other $ 0.4 $ 0.1 $ 1.3 $ 0.1 $ 0.1 $ 0.2
Depreciation,
depletion
and
amortization $ 3.5 $ 3.1 $ 38.0 $ 4.3 $ 2.7 $ 7.0
Minority
interest
and other -- -- -- $ (1.9) $ (0.2) $ (2.1)
Total
production
cost for
per ounce
calculations $ 40.5 $ 8.9 $ 175.6 $ 9.7 $ 10.7 $ 20.4
Equity ounces
sold (000) 121.9 22.6 543.9 56.4 26.2 82.6
Equity cash
cost per
ounce sold $ 300 $ 251 $ 251 $ 126 $ 307 $ 183
Equity total
production
cost per
ounce sold $ 332 $ 388 $ 323 $ 171 $ 408 $ 246
Three Months Ended Central Asia/
March 31, 2004 Zarafshan Ovacik Europe Total Gold
-------------------- ------------- ------------- ------------- -------------
Costs
applicable
to sales
under GAAP $ 8.4 $ 1.9 $ 10.3 $ 500.7
Minority
interest -- -- -- $ (62.5)
Accretion
expense $ (0.1) $ (0.1) $ (0.2) $ (4.6)
Write-down
of
inventories -- -- -- $ (2.7)
Purchased
ore
and other -- -- -- $ (14.2)
Total cash
cost for
per ounce
calculations $ 8.3 $ 1.8 $ 10.1 $ 416.7
Accretion
expense
and other $ 0.1 -- $ 0.1 $ 4.0
Depreciation,
depletion
and
amortization $ 2.7 $ 1.2 $ 3.9 $ 145.7
Minority
interest
and other -- -- -- $ (27.3)
Total
production
cost for
per ounce
calculations $ 11.1 $ 3.0 $ 14.1 $ 539.1
Equity ounces
sold (000)(1) 55.9 5.9 61.8 1,812.4
Equity cash
cost per
ounce sold $ 148 $ 302 $ 163 $ 230
Equity total
production
cost per
ounce sold $ 198 $ 498 $ 227 $ 297
(1) Excludes 0.2 thousand ounces from Golden Grove
RECONCILIATION OF BATU HIJAU COSTS APPLICABLE TO SALES TO TOTAL CASH COST
PER EQUITY POUND, AND TOTAL PRODUCTION COST PER EQUITY POUND (DOLLARS IN
MILLIONS EXCEPT PER POUND AMOUNTS)
Three Months Ended March 31,
-----------------------------
Batu Hijau 2005 2004
--------------------------------------------- ------------- -------------
Costs applicable to sales
per financial statements $ 70.9 $ 64.6
Minority interest $ (34.3) $ 29.5
Accretion expense $ (0.4) $ 0.5
Smelting and refining $ 12.6 $ 16.7
Total cash cost for
per pound calculation 48.8 51.3
Accretion expense (0.4) 0.5
Depreciation, depletion
and amortization 26.2 21.1
Minority interest 12.3 (9.2)
Total production cost
for per pound calculation 63.1 63.7
Equity copper sold (000 lbs) 52,922 73,819
Total cash cost per equity pound $ 0.92 $ 0.70
Total production cost
per equity pound $ 1.19 $ 0.87
RECONCILIATION OF GOLDEN GROVE COSTS APPLICABLE TO SALES TO COPPER AND ZINC
CASH COSTS PER POUND (IN MILLIONS, EXCEPT PER POUND)
Three Months Ended March 31,
---------------------------------------------------------------------------
2005 2004
------------------------------------ ------------------------------------
Total Copper Zinc Total Copper Zinc
---------- ---------- ---------- ---------- ---------- ----------
Costs
applicable
to sales per
financial
statements 2.2 $ (0.6) $ 2.8 $ 9.1 $ 0.5 $ 8.6
Accretion
expense (0.2) (0.1) (0.1) (0.1) -- (0.1)
Write-down
inventories $ (0.6) $ (0.4) (0.2) -- -- --
Smelting and
refining
and
purchased
concentrates $ 8.1 $ 0.0 $ 8.1 $ 9.1 $ 0.5 $ 8.6
Total cash
cost for
per pound
calculation $ 9.5 $ (1.1) $ 10.6 $ 18.1 $ 1.0 $ 17.1
Total sold
(000 lbs) n/a -- 29,091 n/a 2,265 45,448
Total cash
cost per
pound sold n/a $ 0.00 $ 0.36 n/a $ 0.46 $ 0.38
RECONCILIATION OF TOTAL NEWMONT COSTS APPLICABLE TO SALES TO TOTAL COPPER
CASH COSTS PER EQUITY POUND, (DOLLARS IN MILLIONS EXCEPT PER POUND AMOUNTS)
Three Months Ended March 31,
-----------------------------
Total Copper 2005 2004
--------------------------------------------- ------------- -------------
Costs applicable to sales
per financial statements $ 70.3 $ 65.1
Minority interest $ (34.3) $ (29.5)
Accretion expense $ (0.5) $ (0.5)
Write-down inventories $ (0.4) --
Smelting and refining $ 12.6 $ 17.2
Total cash cost for
per pound calculation $ 47.7 $ 52.3
Equity copper sold (000 lbs) 52,922 76,084
Total cash cost per equity pound $ 0.90 $ 0.69
GOLD HEDGE POSITION - AS OF MARCH 31, 2005
CURRENT MATURITY SUMMARY (1) (3) (000 ounces)
Gold Put Option Price Capped
Contracts Contracts
------------------------------ ------------------------------
Years Ozs Price (2) Ozs Price(2)
-------------------- ------------- ------------- ------------- -------------
2005 156 $ 292 450 $ 350
2006 100 $ 338 -- --
2007 20 $ 397 -- --
2008 -- -- 1,000 $ 384
2009 -- -- 600 $ 381
2010 -- -- -- --
2011 -- -- 250 $ 392
Total/Average 276 $ 316 2,300 $ 378
The mark-to-market value of the gold put option contracts was negative $7
million at March 31, 2005.
Notes:
(1) For more detailed descriptions, definitions and explanations, refer to
the Company's Annual Report on Form 10-K for the year ended December
31, 2004 filed on March 15, 2005.
(2) Prices quoted are gross contract prices, which represent the gross
cash flow per ounce of each contract. Not included in these prices are
the additional cash outflows associated with borrowing gold over the
life of the contract where the contracts are floating in nature. The
rate at which gold is borrowed is determined over the life of the
contract based on the prevailing market gold lease rate for the time
period that the borrowing is fixed. The borrowing can be fixed for
varying periods over the life of the contract.
(3) In addition to the gold hedge positions shown in the table above, the
Company entered into a prepaid forward gold sales contract in July
1999, which is reflected as debt on the Company's consolidated balance
sheets. Under the prepaid forward gold sales contract, the Company
agreed to sell 483,333 ounces of gold, to be delivered in June of each
of 2005, 2006 and 2007 in annual installments of 161,111 ounces of
gold. For more detailed descriptions, definitions and explanations,
refer to the Company's Annual Report on Form 10-K for the year ended
December 31, 2004 filed on March 15, 2005.
The Company's first quarter earnings conference call and web cast
presentation will be held on April 27, 2005 beginning at 4:00 p.m. Eastern Time
(2:00 p.m. Mountain Time). To participate:
Dial-In Number: (773) 681-5843
Leader: Randy Engel
Password: Newmont
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
Randy Engel
Telephone: (303) 837-6033
Email: randy.engel@newmont.com
Wendy Yang
Telephone: (303) 837-6141
Email: wendy.yang@newmont.com
Jennifer Van Dinter
Telephone: (303) 837-5165
Email: jennifer.vandinter@newmont.com
Media Contacts
Doug Hock
Telephone: (303) 837-5812
Email: doug.hock@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 gold and other metals
production and sales; (ii) estimates of future costs applicable to sales; (iii)
estimates of future capital expenditures, expenses and tax rates; (iv) estimates
regarding timing of future production or closure activities; (v) statements
regarding future exploration results and the replacement of reserves; (vi)
statements regarding future asset sales or rationalization efforts; and (vii)
estimates of future royalty revenues. Where the Company expresses or implies an
expectation or belief as to future events or results, such expectation or belief
is expressed in good faith and believed to have a reasonable basis. However,
forward-looking statements are subject to risks, uncertainties and other
factors, which could cause actual results to differ materially from future
results expressed, projected or implied by such forward-looking statements. Such
risks include, but are not limited to, gold and other metals price volatility,
currency fluctuations, increased production costs and variances in ore grade or
recovery rates from those assumed in mining plans, 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 2004 Annual Report on Form 10-K, which is on file
with the Securities and Exchange Commission, as well as the Company's other SEC
filings. The Company does not undertake any obligation to release publicly
revisions to any "forward-looking statement," to reflect events or circumstances
after the date of this news release, or to reflect the occurrence of
unanticipated events, except as may be required under applicable securities
laws.
SOURCE Newmont Mining Corporation
-0- 04/27/2005 AA LAW063
/PRNewswire -- April 27/
/END FIRST AND FINAL ADD/
/Web site: http://www.newmont.com