Exhibit 99.1
NEWMONT MINING CORPORATION SECOND QUARTER 2005 RESULTS
SECOND QUARTER NET INCOME OF $50 MILLION ($0.11 PER SHARE)
DENVER, July 27 /PRNewswire-FirstCall/ -- Newmont Mining Corporation (NYSE:
NEM) today announced second quarter net income of $50 million ($0.11 per share)
compared with net income of $37 million ($0.08 per share) for the second quarter
of 2004. Second quarter net income was impacted by a $30 million ($0.07 per
share) impairment charge related to the sale of the Golden Grove zinc/copper
operation in Australia. Income from continuing operations for the second quarter
was $84 million ($0.19 per share). Second quarter highlights included:
* Consolidated gold sales of 2.0 million ounces at costs applicable to
sales of $244 per ounce;
* Net cash provided from operations of $136 million after a net working
capital increase of $139 million and the physical delivery of gold to
reduce debt by $48 million; and
* Cash and cash equivalents, marketable securities and investments of $2.4
billion.
Wayne W. Murdy, Chairman and Chief Executive Officer, said, "As expected,
our operating performance was consistent with our plan during the second
quarter. We continue to expect stronger operating performance in the second half
as we access higher grade ore, increase processing rates at Batu Hijau and
Yanacocha and begin production at the Leeville mine in Nevada. Our development
projects are proceeding according to plan and we continue to see encouraging
exploration results, most notably in Ghana."
Financial (in millions,
except per share) Q2 2005 Q2 2004 YTD 2005 YTD 2004
- ----------------------------------- --------- --------- --------- ---------
Revenues $ 1,006 $ 982 $ 1,959 $ 2,088
Net cash from operations $ 136 $ 280 $ 324 $ 633
Income from continuing
operations (1) $ 84 $ 41 $ 166 $ 171
Income from continuing
operations per common
share (1) $ 0.19 $ 0.09 $ 0.37 $ 0.39
Net income $ 50 $ 37 $ 134 $ 124
Net income per common
share $ 0.11 $ 0.08 $ 0.30 $ 0.28
Operating
Consolidated gold sales
(000 ounces) (2) 2,009 2,053 4,003 4,336
Equity gold sales
(000 ounces) 1,537 1,638 3,088 3,451
Average realized gold
price ($/ounce) $ 421 $ 395 $ 423 $ 404
Costs applicable to
sales ($/ounce) (2) $ 244 $ 225 $ 241 $ 222
(1) Continuing operations exclude the Golden Grove zinc/copper mine. Newmont
sold Golden Grove in July 2005.
(2) In the first quarter of 2005, Newmont began 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.
FINANCIAL & OPERATING REVIEW
Second quarter 2005 net income was $50 million ($0.11 per share), compared
with $37 million ($0.08 per share) for the second quarter of 2004. Net income
for the second quarter was impacted by the following items:
* a $29.6 million ($0.07 per share) impairment at Golden Grove in
Australia;
* a $6.6 million ($0.01 per share) benefit related to Australian tax
consolidation; and
* an $8.0 million ($0.02 per share) expense for litigation and related
costs at Minahasa in Indonesia.
These items had the net effect of reducing net income for the second quarter
by $31 million ($0.07 per share). Net income for the second quarter of 2004 was
impacted by $48 million ($0.11 per share) in non-cash, after-tax impairment
charges related to the Ovacik mine in Turkey and the Company's investment in
Kinross.
For the second quarter of 2005, the Company sold 2,008,800 ounces of gold on
a consolidated basis at an average realized price of $421 per ounce. For the
second quarter of 2004, the Company's consolidated gold sales were 2,053,100
ounces at an average realized price of $395 per ounce.
The Company generated net cash from operations of $136 million in the second
quarter of 2005, compared with $280 million in the year ago quarter. A working
capital increase of $139 million and the physical delivery of gold valued at $48
million to repay debt were primarily responsible for the lower reported cash
from operations. The working capital increase was primarily attributable to the
timing of concentrate shipments at Batu Hijau, a company-wide increase in
materials and supply inventory, an increase in leach pad inventory at Yanacocha
and a reduction in accounts payable and other accrued liabilities.
OPERATING HIGHLIGHTS -- NORTH AMERICA
North America Q2 2005 Q2 2004 YTD 2005 YTD 2004
- ----------------------------------- --------- --------- --------- ---------
Consolidated gold
sales (000 ounces) 687 659 1,352 1,401
Equity gold sales (000 ounces) 650 634 1,284 1,340
Consolidated costs applicable
to sales ($/ounce) $ 311 $ 278 $ 312 $ 283
In Nevada, gold ounces sold increased 4% in the second quarter of 2005 from
the second quarter of 2004, primarily due to a 14% increase in mill throughput
and a 10% increase in heap leach ore grade, partially offset by an 8% decrease
in mill ore grade. Costs applicable to sales per ounce increased 14% in the
second quarter of 2005 from the second quarter of 2004, primarily due to
increased diesel and other input commodity prices, as well as higher underground
contract service costs.
At Golden Giant in Canada, gold ounces sold in the second quarter of 2005
were comparable to 2004 as lower ore grade was offset by higher recovery. Costs
applicable to sales per ounce increased 4% in the second quarter of 2005 from
the second quarter of 2004, primarily due to appreciation of the Canadian dollar
against the U.S. dollar.
At Holloway in Canada, gold ounces sold increased 18% in the second quarter
of 2005 from the second quarter of 2004 due to a 13% increase in mill throughput
and a 10% increase in ore grade. Costs applicable to sales per ounce decreased
3% in the second quarter of 2005 from the second quarter of 2004 as a result of
the increase in production.
At La Herradura in Mexico, gold ounces sold increased 19% in the second
quarter of 2005 from the second quarter of 2004, primarily as a result of
increased inventory processing. Costs applicable to sales per ounce decreased
15% in the second quarter of 2005 from the second quarter of 2004 resulting
primarily from the increased gold production.
OPERATING HIGHLIGHTS -- SOUTH AMERICA
South America Q2 2005 Q2 2004 YTD 2005 YTD 2004
- ----------------------------------- --------- --------- --------- ---------
Consolidated gold sales
(000 ounces) 730 625 1,510 1,432
Equity gold sales (000 ounces) 378 323 781 741
Consolidated costs applicable
to sales ($/ounce) $ 157 $ 161 $ 150 $ 150
At Yanacocha in Peru, gold ounces sold increased 17% in the second quarter
of 2005 from the second quarter of 2004 primarily due to an 18% increase in the
grade of ore placed on leach pads as well as sales from inventory. Costs
applicable to sales per ounce remained constant as increased input commodity
prices, including diesel, were offset by the increase in production and
by-product silver credits.
At Kori Kollo in Bolivia, consolidated gold sales were 8,000 ounces at costs
applicable to sales of $276 per ounce, as material from the Kori Kollo pit is
being placed on the existing leach pad. Ore from the Kori Chaca pit will be
processed on a new leach pad and processed for sale in the third quarter of
2005.
OPERATING HIGHLIGHTS -- AUSTRALIA/NEW ZEALAND
Australia/New Zealand Q2 2005 Q2 2004 YTD 2005 YTD 2004
- ----------------------------------- --------- --------- --------- ---------
Consolidated sales
(000 ounces) 387 408 827 952
Equity gold sales (000 ounces) 387 408 827 952
Consolidated costs applicable to
sales ($/ounce) $ 332 $ 300 $ 316 $ 276
At Pajingo in Australia, gold ounces sold decreased 12% in the second
quarter of 2005 from the second quarter of 2004, primarily due to a 20% decrease
in ore milled, as mine production was lower and low grade stockpiles that
supplemented production in 2004 were exhausted. Costs applicable to sales per
ounce increased 12%, primarily due to lower production.
At Yandal in Australia, gold ounces sold increased 9% in the second quarter
of 2005 from the second quarter of 2004, primarily due to a 20% increase in mill
ore grade, partially offset by a 5% decrease in tons milled. Costs applicable to
sales per ounce increased 15% in the second quarter of 2005 from the second
quarter of 2004, primarily due to higher underground contract service costs, as
well as increased steel and diesel costs.
At Tanami in Australia, gold ounces sold decreased 20% in the second quarter
of 2005 from the second quarter of 2004, primarily due to a 21% decline in ore
grade from mining lower grade zones from the Callie underground deposit and
processing lower grade stockpiles at Groundrush. Costs applicable to sales per
ounce increased 24% in the second quarter of 2005 from the second quarter of
2004, primarily due to lower gold production.
At Kalgoorlie in Australia, gold ounces sold decreased 5% in the second
quarter of 2005 from the second quarter of 2004 due to a build of in-process
inventory. Costs applicable to sales per ounce increased 6% in the second
quarter of 2005 from the second quarter of 2004, primarily due to increased
diesel, reagent and power costs.
At Martha in New Zealand, gold ounces sold increased 54% in the second
quarter of 2005 from the second quarter of 2004, primarily due to a 55% increase
in ore grade due to mine sequencing. Costs applicable to sales per ounce
decreased 28% in the second quarter of 2005 from the second quarter of 2004,
primarily due to increased production that was partially offset by higher
processing costs from milling harder ore.
OPERATING HIGHLIGHTS -- INDONESIA
Batu Hijau Q2 2005 Q2 2004 YTD 2005 YTD 2004
- ----------------------------------- --------- --------- --------- ---------
Consolidated copper sales
(million pounds) 154 190 254 321
Equity copper sales
(million pounds) 81 107 134 181
Consolidated costs applicable
to sales ($/pound copper) $ 0.45 $ 0.38 $ 0.55 $ 0.43
Consolidated gold sales
(000 ounces) 175 198 250 298
Equity gold sales (000 ounces) 93 111 132 168
Consolidated costs applicable
to sales ($/ounce gold) $ 149 $ 126 $ 167 $ 127
At Batu Hijau in Indonesia, copper and gold sales decreased 19% and 11%,
respectively, in the second quarter of 2005 from the second quarter of 2004.
Access to ore in the lower portion of the pit was temporarily restricted as a
result of several small pit wall slides in 2005. As a result, the mine plan and
pit design were revised, resulting in the processing of harder ores and
stockpiles. Costs applicable to sales per pound of copper and per ounce of gold
each increased 18% during the second quarter of 2005 from the second quarter of
2004, due primarily to lower production and increased maintenance, consumable
and labor costs.
OPERATING HIGHLIGHTS -- CENTRAL ASIA
Central Asia Q2 2005 Q2 2004 YTD 2005 YTD 2004
- ----------------------------------- --------- --------- --------- ---------
Consolidated gold sales
(000 ounces) 30 138 64 200
Equity gold sales (000 ounces) 30 138 64 200
Consolidated costs applicable
to sales ($/ounce) $ 235 $ 170 $ 216 $ 169
At Zarafshan in Uzbekistan, gold ounces sold decreased 57% in the second
quarter of 2005 from the second quarter of 2004, due to a 29% decrease in ore
grade as well as slower recovery from leach pads. Costs applicable to sales per
ounce increased 61% in the second quarter of 2005 from the second quarter of
2004, primarily as a result of the decrease in production.
The Ovacik mine in Turkey was sold to a subsidiary of Koza Davetiye, a
Turkish company in March 2005. Operations were suspended in August 2004.
MERCHANT BANKING
Newmont Capital manages the Company's royalty and marketable securities
portfolios as well as provides in-house support for asset transactions. For the
second quarter of 2005, royalty and dividend income was $21 million, up
approximately 40% from the year ago quarter. At the end of the second quarter of
2005, the market value of the marketable equity securities portfolio was $633
million, an increase of $126 million from year-end 2004.
During the second quarter of 2005, Newmont Capital executed an agreement
with Oxiana Limited for the sale of the non-core Golden Grove zinc/copper
operation in Australia. The transaction closed on July 26, 2005, with total
consideration of approximately $205 million, including approximately $144
million in cash and 81.5 million shares of Oxiana Limited.
CASH, MARKETABLE SECURITIES AND DEBT
At the end of the second quarter, cash, short-term marketable securities and
investments totaled $2.4 billion. Outstanding debt totaled $2.1 billion. Of the
outstanding debt, $657 million was Batu Hijau project finance debt that is
non-recourse to the Company.
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 94%
complete, to a depth of 1,710 feet. Hoisting from the completed ventilation
shaft began in late June. Overall, construction is 73% complete.
At the Phoenix project in Nevada, engineering is 100% complete and
construction is 50% complete. Concrete placement is 76% complete. Initial gold
production is expected by early 2006.
Construction of a proposed 200 megawatt power plant in Nevada is awaiting
final completion of the air permitting process; all other required permits have
been approved and issued by the appropriate agencies.
At the Ahafo project in Ghana, engineering and procurement are essentially
complete. In the field, camp and general infrastructure construction is
progressing, as are concrete works for the process plant. Major works on the
process plant are on course with construction 47% complete. The first mining
equipment has arrived on site and the initial truck and excavator fleets are due
on site in the third quarter. The project is on schedule to deliver first gold
production by the second half of 2006.
At the Akyem Project in Ghana, a feasibility study update was completed in
February 2005. An environmental impact statement was submitted to the Ghana
Environmental Protection Agency in early May and a public hearing on the project
occurred in late June.
At Boddington in Australia, work continues on the feasibility study update
with a development decision expected in 2006.
EXPLORATION, ADVANCED PROJECTS, RESEARCH & DEVELOPMENT
Exploration expenditures were $39 million in the second quarter of 2005,
compared with $29 million in the year ago quarter. Advanced projects, research
and development expenditures were $14 million in the second quarter of 2005
compared with $18 million in the second quarter of 2004.
Drilling programs in Nevada are yielding positive results at Gold Quarry and
Phoenix. These drilling programs will continue through 2005 for potential
reserve and non-reserve mineralization additions.
At the Ahafo project in Ghana, exploration programs advanced the geologic
understanding of the deposits in the north and south areas. New targets and
extensions of known mineralization are being drilled with encouraging early
results.
At the Minas Conga district in Peru, infill drilling at the Perol and
Chailhuagon deposits is progressing on schedule to convert non-reserve
mineralization to reserves by year-end. Early results generally confirm the
current block model estimate. Exploration drilling at the Amaro prospect is
encouraging and will be followed up with an infill drilling program to assess
the non-reserve mineralization potential by year-end.
2005 GUIDANCE
The Company expects consolidated gold sales of 8.4 -- 8.5 million ounces
(6.5 -- 6.6 million equity ounces) at consolidated costs applicable to sales of
$230 -- $240 per ounce in 2005. The Company expects consolidated copper sales of
approximately 635 million pounds (approximately 350 million equity pounds) at
consolidated costs applicable to sales of $0.53 per pound. The slightly lower
gold sales outlook is primarily attributable to the sale of the non-core Golden
Grove operation, an estimated 2% -- 3% decline in Nevada gold sales and lower
expected copper and gold sales at Batu Hijau resulting from geotechnical pit and
mine plan redesign. Gold sales are expected to be weighted to the second half of
the year as new stripping capacity is put into service, higher grades are
accessed, and Leeville begins production.
For 2005, exploration expenditures are expected in the range of $145 -- $155
million, while advanced projects, research and development expenditures are
estimated in the range of $60 -- $70 million. Exploration expenditures will
remain focused on Ghana, Peru and Nevada.
Consolidated capital expenditures are expected to be $1.1 -- $1.2 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 (www.newmont.com), under Investor
Information/News Releases.
STATEMENTS OF CONSOLIDATED INCOME
Three Months Ended Six Months Ended
June 30, June 30,
--------------------- ---------------------
2005 2004 2005 2004
--------- --------- --------- ---------
(unaudited, in millions except per share)
Revenues
Sales -- gold, net $ 842 $ 807 $ 1,686 $ 1,747
Sales -- base metals, net 164 175 273 341
1,006 982 1,959 2,088
Costs and expenses
Costs applicable to sales
(exclusive of depreciation,
depletion and amortization
shown separately below)
Gold 489 463 966 964
Base metals 70 72 141 136
Depreciation, depletion
and amortization 158 165 322 342
Exploration 39 29 66 48
Advanced projects, research
and development 14 18 32 34
General and administrative 32 31 63 58
Write down of long-lived
assets -- 16 2 16
Other 16 9 38 14
818 803 1,630 1,612
Other income (expense)
Other income (expense), net 43 (19) 111 4
Interest expense, net (31) (25) (52) (50)
12 (44) 59 (46)
Income from continuing
operations before income
tax expense, minority
interest and equity income
(loss) of affiliates 200 135 388 430
Income tax expense (41) (32) (92) (120)
Minority interest in income
of subsidiaries (74) (61) (133) (140)
Equity income (loss) of
affiliates (1) (1) 3 1
Income from continuing
operations 84 41 166 171
Loss from discontinued
operations (34) (4) (32) --
Cumulative effect of a change
in accounting principle -- -- -- (47)
Net income $ 50 $ 37 $ 134 $ 124
Income per common share
Basic and diluted:
Income from continuing
operations $ 0.19 $ 0.09 $ 0.37 $ 0.39
Loss from discontinued
operations (0.08) (0.01) (0.07) --
Cumulative effect of a
change in accounting
principle -- -- -- (0.11)
Net income $ 0.11 $ 0.08 $ 0.30 $ 0.28
Cash dividends declared
per common share $ 0.10 $ 0.075 $ 0.20 $ 0.125
CONSOLIDATED BALANCE SHEETS
At June 30, At December 31,
2005 2004
----------- ---------------
(unaudited, in millions)
ASSETS
Cash and cash equivalents $ 741 $ 781
Marketable securities and other
short-term investments 1,098 943
Trade receivables 124 77
Accounts receivable 169 130
Inventories 282 249
Stockpiles and ore on leach pads 267 230
Other current assets 257 288
Current assets 2,938 2,698
Property, plant and mine development, net 5,344 5,165
Investments 539 386
Long-term stockpiles and ore on leach pads 524 525
Deferred income tax assets 578 492
Other long-term assets 293 265
Goodwill 2,992 2,994
Assets of operations held for sale 226 251
Total assets $ 13,434 $ 12,776
LIABILITIES
Current portion of long-term debt $ 287 $ 286
Accounts payable 204 224
Employee-related benefits 100 130
Other current liabilities and
deferred revenue 469 446
Current liabilities 1,060 1,086
Long-term debt, less current portion 1,795 1,316
Reclamation and remediation liabilities 425 421
Employee-related benefits 257 245
Deferred income tax liabilities 502 460
Other long-term liabilities and
deferred revenue 471 489
Liabilities of operations held for sale 34 46
Total liabilities 4,544 4,063
Minority interest in subsidiaries 839 775
STOCKHOLDERS' EQUITY
Common stock 660 656
Additional paid-in capital 6,541 6,524
Accumulated other comprehensive income 195 147
Retained earnings 655 611
Total stockholders' equity 8,051 7,938
Total liabilities and stockholders'
equity $ 13,434 $ 12,776
STATEMENT OF CONSOLIDATED CASH FLOWS
Three Months Ended
June 30,
--------------------------
2005 2004
----------- -----------
(unaudited, in millions)
Operating activities:
Net income $ 50 $ 37
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation, depletion and amortization 158 165
Revenue from prepaid forward sales obligation (48) --
Loss from discontinued operations 34 5
Accretion of accumulated reclamation
obligations 7 6
Amortization (deferral) of stripping
costs, net (12) (1)
Deferred income taxes (21) (7)
Minority interest expense 74 61
Write-downs of inventories, stockpiles
and ore on leach pads 3 19
(Gain) loss on investments, net (1) 39
(Gain) loss on sale of assets (3) 2
Hedge (gain) loss, net 28 1
Other operating adjustments 3 6
(Increase) decrease in operating assets:
Trade and accounts receivable (25) 46
Inventories, stockpiles and ore on leach pads (58) (12)
Other assets -- 11
Increase (decrease) in operating liabilities:
Accounts payable and other accrued liabilities (48) (97)
Reclamation liabilities (8) (10)
Net cash provided from continuing operations 133 271
Net cash provided from discontinued operations 3 9
Net cash from operations 136 280
Investing activities:
Additions to property, plant and mine
development (303) (179)
Additions to property, plant and mine
development of discontinued operations (10) (7)
Investments in marketable debt and equity
securities (1,268) (414)
Proceeds from sale of marketable debt
and equity securities 1,278 145
Proceeds from sale of assets 8 2
Net cash used in investing activities (295) (453)
Financing activities:
Proceeds from debt, net 2 38
Repayment of debt (55) (55)
Dividends paid to common stockholders (45) (33)
Dividends paid to minority interests (55) (37)
Common stock issued for compensation plans 2 7
Change in restricted cash and other (5) 10
Net cash used in financing activities (156) (70)
Effect of exchange rate changes on cash (2) (6)
Net change in cash and cash equivalents (317) (249)
Cash and cash equivalents at beginning of period 1,058 985
Cash and cash equivalents at end of period $ 741 $ 736
Supplemental Information
Non-cash extinguishment of infrastructure
bonds $ -- $ 124
Non-cash settlement of prepaid forward
sales obligation $ 48 $ --
Interest paid, net of amounts capitalized $ 29 $ 31
Income taxes paid $ 79 $ 114
STATEMENT OF CONSOLIDATED CASH FLOWS
Six Months Ended
June 30,
----------------------------
2005 2004
------------ ------------
(unaudited, in millions)
Operating activities:
Net income $ 134 $ 124
Adjustments to reconcile net income to
net cash provided by operating activities:
Depreciation, depletion and amortization 322 342
Revenue from prepaid forward sales obligation (48) --
Loss from discontinued operations 32 --
Accretion of accumulated reclamation
obligations 14 13
Amortization of deferred stripping costs,
net (46) (16)
Deferred income taxes (28) 17
Minority interest expense 133 140
Write-down of assets 8 24
Loss (gain) on investments, net (6) 39
Cumulative effect of change in
accounting principle, net -- 47
Gain on asset sales, net (35) (7)
Hedge (gain) loss, net 48 (2)
Other operating adjustments 3 12
(Increase) decrease in operating assets:
Trade and accounts receivable (44) (18)
Inventories, stockpiles and ore on
leach pads (71) 20
Other assets 4 (5)
Increase (decrease) in operating liabilities:
Accounts payable and other accrued
liabilities (87) (92)
Reclamation liabilities (14) (17)
Net cash provided from continuing operations 319 621
Net cash provided from discontinued operations 5 12
Net cash from operations 324 633
Investing activities:
Additions to property, plant and mine
development (535) (336)
Additions to property, plant and mine
development of discontinued operations (21) (17)
Investments in marketable debt and
equity securities (2,042) (1,070)
Proceeds from sale of marketable debt
and equity securities 1,824 422
Cash recorded upon consolidation of
Batu Hijau -- 82
Proceeds from sale of assets 60 12
Net cash used in investing activities (714) (907)
Financing activities:
Proceeds from debt, net 584 38
Repayment of debt (70) (77)
Dividends paid to common stockholders (89) (55)
Dividends paid to minority interests (71) (66)
Common stock issued for compensation plans 6 26
Change in restricted cash and other (7) 19
Net cash provided by (used in) financing
activities 353 (115)
Effect of exchange rate changes on cash (3) (5)
Net change in cash and cash equivalents (40) (394)
Cash and cash equivalents at beginning of
period 781 1,130
Cash and cash equivalents at end of period $ 741 $ 736
Supplemental Information
Non-cash extinguishment of infrastructure
bonds $ -- $ 124
Non-cash settlement of prepaid forward
sales obligation $ 48 $ --
Interest paid, net of amounts capitalized $ 39 $ 51
Income taxes paid $ 140 $ 162
2005 GUIDANCE
Consolidated
Costs
Consolidated Applicable
Equity Sales Sales to Sales
Consolidated Gold and Copper (000 oz) (000 oz) ($/oz)
- ------------------------------ ------------- ------------- -------------
North America Gold
Nevada 2,495 2,645 $ 305
Golden Giant 155 155 $ 325
Holloway 90 90 $ 405
La Herradura 80 80 $ 160
Sub-total 2,820 2,970 $ 305
(000 oz) (000 oz) ($/oz)
------------- ------------- -------------
South America Gold
Yanacocha 1,530 2,980 $ 145
Kori Kollo 60 70 $ 185
Sub-total 1,590 3,050 $ 146
(000 oz) (000 oz) ($/oz)
------------- ------------- -------------
Australia(1)/New
Zealand Gold
Kalgoorlie 430 430 $ 330
Pajingo 195 195 $ 290
Tanami 485 485 $ 315
Jundee 325 325 $ 345
Martha 155 155 $ 170
Sub-total 1,590 1,590 $ 308
(000 oz) (000 oz) ($/oz)
------------- ------------- -------------
Indonesia Gold
Batu Hijau 380 720 $ 150
(000 oz) (000 oz) ($/oz)
------------- ------------- -------------
Central Asia Gold
Zarafshan 140 140 $ 230
TOTAL GOLD 6,500-6,600 8,400-8,500 $ 230-$240
Copper (million lbs) (million lbs) ($/lb)
Batu Hijau 325 610 $ 0.50
Golden Grove 25 25 $ 1.33
Consolidated Financial Guidance
($ million, except tax rate)
- ----------------------------------------------
Royalty and dividend income $ 65-$70
Depreciation, depletion & amortization $ 670-$700
Exploration $ 145-$155
Advanced projects, research and development $ 60-$70
General and administrative $ 115-$125
Interest expense, net $ 100-$110
Tax rate (assuming $425/oz gold) 28%-30%
Capital expenditures $1,100-$1,200
Notes:
1. Consolidated costs applicable to sales are based on an A$1 = $0.76 exchange
rate assumption.
COMPARISON OF EQUITY GOLD SALES OUNCES AND
CONSOLIDATED GOLD SALES OUNCES
Q2 2005 Q2 2004
---------------------------- ----------------------------
Equity Consolidated Equity Consolidated
Sales Sales Sales Sales
Ownership (000 ozs) (000 oz) (000 ozs) (000 oz)
------------ ------------ ------------ ------------ ------------
North America
Nevada 100.00% 569.4 606.5 560.0 585.3
Golden Giant 100.00% 39.9 39.9 39.4 39.4
Holloway 84.65% 18.7 18.7 15.9 15.9
La Herradura 44.00% 21.6 21.6 18.2 18.2
Sub-Total 649.6 686.7 633.5 658.8
South America
Yanacocha 51.35% 370.9 722.3 317.7 618.7
Kori Kollo 88.00% 6.9 7.8 5.6 6.4
Sub-Total 377.8 730.1 323.3 625.1
Australia/New Zealand
Pajingo 100.00% 42.8 42.8 48.6 48.6
Yandal 100.00% 78.2 78.2 72.0 72.0
Tanami 100.00% 126.7 126.7 158.9 158.9
Kalgoorlie 50.00% 93.1 93.1 98.5 98.5
Martha 100.00% 46.5 46.5 30.1 30.1
Sub-Total 387.3 387.3 408.1 408.1
Indonesia
Batu Hijau 52.88% 92.5 174.9 111.2 197.6
Minahasa 94.00% -- -- 23.6 25.1
Sub-Total 92.5 174.9 134.8 222.7
Central Asia
Zarafshan 50.00% 29.8 29.8 68.9 68.9
Ovacik 100.00% -- -- 69.5 69.5
Sub-Total 29.8 29.8 138.4 138.4
Newmont 1,537.0 2,008.8 1,638.1 2,053.1
YTD 2005 YTD 2004
---------------------------- ----------------------------
Equity Consolidated Equity Consolidated
Sales Sales Sales Sales
Ownership (000 ozs) (000 oz) (000 ozs) (000 oz)
------------ ------------ ------------ ------------ ------------
North America
Nevada 100.00% 1,126.9 1,195.1 1,177.5 1,237.9
Golden Giant 100.00% 77.7 77.7 92.2 92.2
Holloway 84.65% 38.8 38.8 35.1 35.1
La Herradura 44.00% 40.5 40.5 35.5 35.5
Sub-Total 1,283.9 1,352.1 1,340.3 1,400.7
South America
Yanacocha 51.35% 767.8 1,495.2 728.0 1,417.7
Kori Kollo 88.00% 13.0 14.8 12.8 14.6
Sub-Total 780.8 1,510.0 740.8 1,432.3
Australia/
New Zealand
Pajingo 100.00% 86.7 86.7 123.8 123.8
Yandal 100.00% 166.1 166.1 213.1 213.1
Tanami 100.00% 273.6 273.6 342.0 342.0
Kalgoorlie 50.00% 209.6 209.6 220.4 220.4
Martha 100.00% 90.6 90.6 52.7 52.7
Sub-Total 826.6 826.6 952.0 952.0
Indonesia
Batu Hijau 52.88% 132.4 250.3 167.6 297.9
Minahasa 94.00% -- -- 49.8 53.0
Sub-Total 132.4 250.3 217.4 350.9
Central Asia
Zarafshan 50.00% 64.1 64.1 124.8 124.8
Ovacik 100.00% -- -- 75.4 75.4
Sub-Total 64.1 64.1 200.2 200.2
Newmont 3,087.8 4,003.1 3,450.7 4,336.1
OPERATING STATISTICS SUMMARY
Australia/
North America South America New Zealand
--------------------------- --------------------------- ---------------------------
Three months ended June 30, 2005 2004 2005 2004 2005 2004
- ----------------------------------- ------------ ------------ ------------ ------------ ------------ ------------
Gold Summary
Ounces sold (000) 686.7 658.8 730.1 625.1 387.3 408.1
Equity ounces sold (000) 649.6 633.5 377.8 323.3 387.3 408.1
Cost applicable to sales
(in millions) $ 214 $ 183 $ 114 $ 101 $ 128 $ 122
Cost applicable to sales
per ounce $ 311 $ 278 $ 157 $ 161 $ 332 $ 300
Depreciation and amortization
(in millions) $ 37 $ 38 $ 52 $ 49 $ 28 $ 28
Depreciation and amortization
per ounce $ 54 $ 56 $ 71 $ 78 $ 72 $ 68
Average realized price per
ounce
(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
Indonesia(1) Central Asia(2) Total
--------------------------- --------------------------- ---------------------------
Three months ended June 30, 2005 2004 2005 2004 2005 2004
- ----------------------------------- ------------ ------------ ------------ ------------ ------------ ------------
Gold Summary
Ounces sold (000) 174.9 222.7 29.8 138.4 2,008.8 2,053.1
Equity ounces sold (000) 92.5 134.8 29.8 138.4 1,537.0 1,638.1
Cost applicable to
sales (in millions) $ 26 $ 33 $ 7 $ 24 $ 489 $ 463
Cost applicable to
sales per ounce $ 149 $ 146 $ 235 $ 170 $ 244 $ 225
Depreciation and
amortization
(in millions) $ 9 $ 8 $ 2 $ 12 $ 128 $ 135
Depreciation and
amortization per
ounce $ 50 $ 39 $ 74 $ 85 $ 63 $ 65
Average realized price
per ounce $ 421 $ 395
(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
Australia/
North America South America New Zealand
--------------------------- --------------------------- ---------------------------
Six months ended June 30, 2005 2004 2005 2004 2005 2004
- ----------------------------------- ------------ ------------ ------------ ------------ ------------ ------------
Gold Summary
Ounces sold (000) 1,352.1 1,400.7 1,510.0 1,432.3 826.6 952.0
Equity ounces sold (000) 1,283.9 1,340.3 780.8 740.8 826.6 952.0
Cost applicable to
sales (in millions) $ 421 $ 397 $ 227 $ 215 $ 262 $ 263
Cost applicable to
sales per ounce $ 312 $ 283 $ 150 $ 150 $ 316 $ 276
Depreciation and
amortization (in
millions) $ 74 $ 79 $ 99 $ 104 $ 58 $ 66
Depreciation and
amortization per
ounce $ 55 $ 56 $ 65 $ 72 $ 71 $ 69
Average realized
price per ounce
(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
Indonesia(1) Central Asia(2) Total
--------------------------- --------------------------- ---------------------------
Six months ended June 30, 2005 2004 2005 2004 2005 2004
- ----------------------------------- ------------ ------------ ------------ ------------ ------------ ------------
Gold Summary
Ounces sold (000) 250.3 350.9 64.1 200.2 4,003.1 4,336.1
Equity ounces sold (000) 132.4 217.4 64.1 200.2 3,087.8 3,450.7
Cost applicable to
sales (in millions) $ 42 $ 55 $ 14 $ 34 $ 966 $ 964
Cost applicable to
sales per ounce $ 167 $ 154 $ 216 $ 169 $ 241 $ 222
Depreciation and
amortization (in
millions) $ 14 $ 15 $ 4 $ 16 $ 249 $ 280
Depreciation and
amortization
per ounce $ 60 $ 45 $ 71 $ 78 $ 63 $ 65
Average realized
price per ounce $ 423 $ 404
(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
Three months ended Six months ended
June 30, June 30,
--------------------------- ---------------------------
Copper Summary 2005 2004 2005 2004
- -------------------------------- ------------ ------------ ------------ ------------
Pounds sold (000) 154,001 189,952 254,089 321,185
Equity pounds sold (000) 81,428 106,848 134,350 180,667
Cost applicable to sales
(in millions) $ 69 $ 72 $ 140 $ 136
Cost applicable to sales
per pound $ 0.45 $ 0.38 $ 0.55 $ 0.43
Depreciation and amortization
(in millions) $ 20 $ 22 $ 46 $ 43
Depreciation and amortization
per pound $ 0.13 $ 0.11 $ 0.18 $ 0.13
Average realized price per pound $ 1.31 $ 1.06 $ 1.32 $ 1.24
GOLD PRODUCTION -- AMERICAS
Nevada Canada (1) La Herradura
----------------------------- ---------------------------- ---------------------------
Three months ended June 30, 2005 2004 2005 2004 2005 2004
- ------------------------------ ------------ ------------ ------------ ------------ ------------ ------------
Tons Mined (000 dry
short tons):
Open-Pit 51,449 52,026 n/a n/a 3,625 2,888
Underground 416 375 274 256 n/a n/a
Tons Milled/Processed (000):
Oxide 1,373 975 281 263 n/a n/a
Refractory 2,318 2,262 n/a n/a n/a n/a
Leach 5,724 5,583 n/a n/a 1,023 1,126
Average Ore Grade (oz/ ton):
Oxide 0.106 0.125 0.221 0.224 n/a n/a
Refractory 0.185 0.189 n/a n/a n/a n/a
Leach 0.024 0.022 n/a n/a 0.027 0.027
Average Mill Recovery Rate:
Oxide 76.4% 81.5% 95.2% 94.0% n/a n/a
Refractory 90.9% 90.3% n/a n/a n/a n/a
Ounces Produced (000): 592.6 566.7 59.0 55.4 21.6 18.2
Ounces Sold (000): 606.5 585.3 58.6 55.3 21.6 18.2
Equity Ounces Produced (000):
Oxide 103.4 100.4 59.0 55.4 n/a n/a
Refractory 339.2 361.9 n/a n/a n/a n/a
Leach 112.9 79.1 n/a n/a 21.6 18.2
Total 555.5 541.4 59.0 55.4 21.6 18.2
Equity Ounces Sold (000) 569.4 560.0 58.6 55.3 21.6 18.2
Production Costs Per Ounce:
Direct mining and
production costs $ 340 $ 310 $ 321 $ 312 $ 168 $ 164
Capitalized mining
and other (37) (41) 2 2 (25) 5
Royalties and production
taxes 9 6 2 4 -- --
Reclamation and mine
closure costs 3 2 3 1 1 1
Costs applicable to
sales 315 277 328 319 144 170
Depreciation and
amortization 50 54 101 88 50 34
Total production
costs $ 365 $ 331 $ 429 $ 407 $ 194 $ 204
(1) Includes Golden Giant and Holloway
Yanacocha, Peru Kori Kollo, Bolivia
---------------------------- ---------------------------
Three months ended June 30, 2005 2004 2005 2004
- ------------------------------------ ------------ ------------ ------------ ------------
Tons Mined (000 dry short tons):
Open-Pit 57,246 51,926 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 35,558 37,358 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 0.025 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): 709.2 612.0 8.7 6.9
Ounces Sold (000): 722.3 618.7 7.8 6.4
Equity Ounces Produced (000):
Oxide n/a n/a n/a n/a
Refractory n/a n/a n/a n/a
Leach 364.2 314.3 7.7 6.0
Total 364.2 314.3 7.7 6.0
Equity Ounces Sold (000) 370.9 317.7 6.9 5.6
Production Costs Per Ounce:
Direct mining and production costs $ 159 $ 157 $ 236 $ 296
Capitalized mining and other (8) (6) (20) 364
Royalties and production taxes 3 2 18 17
Reclamation and mine closure costs 2 2 42 41
Costs applicable to sales 156 155 276 718
Depreciation and amortization 71 77 23 86
Total production costs $ 227 $ 232 $ 299 $ 804
(1) Includes Golden Giant and Holloway
Nevada Canada (1) La Herradura
----------------------------- ---------------------------- ---------------------------
Six months ended June 30, 2005 2004 2005 2004 2005 2004
- ------------------------------ ------------ ------------ ------------ ------------ ------------ ------------
Tons Mined (000 dry
short tons):
Open-Pit 103,199 100,447 n/a n/a 6,379 5,516
Underground 856 758 546 526 n/a n/a
Tons Milled/Processed (000):
Oxide 2,675 2,042 552 526 n/a n/a
Refractory 4,606 4,354 n/a n/a n/a n/a
Leach 11,062 9,076 n/a n/a 1,909 2,114
Average Ore Grade
(oz/ ton):
Oxide 0.106 0.139 0.218 0.245 n/a n/a
Refractory 0.189 0.190 n/a n/a n/a n/a
Leach 0.025 0.023 n/a n/a 0.030 0.026
Average Mill Recovery
Rate:
Oxide 74.6% 78.7% 94.9% 94.5% n/a n/a
Refractory 90.3% 90.6% n/a n/a n/a n/a
Ounces Produced
(000): 1,168.4 1,159.1 117.1 124.3 40.5 35.5
Ounces Sold (000): 1,195.1 1,237.9 116.5 127.3 40.5 35.5
Equity Ounces
Produced (000):
Oxide 207.4 226.5 117.1 124.3 n/a n/a
Refractory 701.6 703.2 n/a n/a n/a n/a
Leach 191.2 169.0 n/a n/a 40.5 35.5
Total 1,100.2 1,098.7 117.1 124.3 40.5 35.5
Equity Ounces Sold (000) 1,126.9 1,177.5 116.5 127.3 40.5 35.5
Production Costs
Per Ounce:
Direct mining and
production costs $ 334 $ 317 $ 351 $ 283 $ 187 $ 145
Capitalized mining
and other (34) (39) 1 2 (16) 1
Royalties and production
taxes 9 7 2 3 -- --
Reclamation and mine
closure costs 3 2 3 1 2 1
Costs applicable to
sales 312 287 357 289 173 147
Depreciation and
amortization 50 54 99 78 55 63
Total production costs $ 362 $ 341 $ 456 $ 367 $ 228 $ 210
(1) Includes Golden Giant and Holloway
Kori Kollo,
Yanacocha, Peru Bolivia
----------------------- -----------------------
Six months ended June 30, 2005 2004 2005 2004
- -------------------------------------- ---------- ---------- ---------- ----------
Tons Mined (000 dry short tons):
Open-Pit 102,984 98,036 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 61,759 65,166 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 0.026 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): 1,505.1 1,415.6 15.7 14.5
Ounces Sold (000): 1,495.2 1,417.7 14.8 14.6
Equity Ounces Produced (000):
Oxide n/a n/a n/a n/a
Refractory n/a n/a n/a n/a
Leach 772.9 726.9 13.8 12.8
Total 772.9 726.9 13.8 12.8
Equity Ounces Sold (000) 767.8 728.0 13.0 12.8
Production Costs Per Ounce:
Direct mining and production costs $ 152 $ 148 $ 235 $ 276
Capitalized mining and other (8) (5) (21) 153
Royalties and production taxes 3 2 18 16
Reclamation and mine closure costs 2 2 44 36
Costs applicable to sales 149 147 276 481
Depreciation and amortization 66 72 29 110
Total production costs $ 215 $ 219 $ 305 $ 591
(1) Includes Golden Giant and Holloway
GOLD PRODUCTION -- AUSTRALIA/NEW ZEALAND
Pajingo Yandal (1) Tanami
------------------- ------------------- -------------------
Three months ended June 30, 2005 2004 2005 2004 2005 2004
- ------------------------------ -------- -------- -------- -------- -------- --------
Tons Mined (000 dry
short tons) 144 136 4,059 1,948 465 4,687
Tons Milled/Processed (000) 165 207 626 659 1,196 1,116
Average Ore Grade
(oz/ton) 0.287 0.224 0.132 0.110 0.110 0.140
Average Mill Recovery Rate 96.5% 96.2% 92.3% 92.0% 94.0% 94.7%
Ounces Produced (000) 44.0 47.2 78.0 69.3 127.5 152.3
Ounces Sold (000) 42.8 48.6 78.2 72.0 126.7 158.9
Equity Ounces Produced (000) 44.0 47.2 78.0 69.3 127.5 152.3
Equity Ounces Sold (000) 42.8 48.6 78.2 72.0 126.7 158.9
Production Costs Per Ounce:
Direct mining and
production costs $ 332 $ 288 $ 367 $ 335 $ 320 $ 239
Capitalized mining
and other (8) 4 16 2 6 18
Royalties and production
taxes 12 9 12 8 17 21
Reclamation and mine
closure costs 2 2 5 4 3 2
Costs applicable to sales 338 303 400 349 346 280
Depreciation and
amortization 132 126 76 61 67 63
Total production costs $ 470 $ 429 $ 476 $ 410 $ 413 $ 343
(1) 2005 includes Jundee. 2004 includes Jundee and Bronzewing.
Kalgoorlie Martha
------------------------- -------------------------
Three months ended June 30, 2005 2004 2005 2004
- -------------------------------------- ---------- ---------- ---------- ----------
Tons Mined (000 dry short tons) 11,396 11,615 501 1,229
Tons Milled/Processed (000) 1,897 1,833 313 343
Average Ore Grade (oz/ton) 0.069 0.066 0.160 0.103
Average Mill Recovery Rate 85.7% 85.3% 92.4% 90.8%
Ounces Produced (000) 95.8 98.9 46.4 30.5
Ounces Sold (000) 93.1 98.5 46.5 30.1
Equity Ounces Produced (000) 95.8 98.9 46.4 30.5
Equity Ounces Sold (000) 93.1 98.5 46.5 30.1
Production Costs Per Ounce:
Direct mining and production costs $ 328 $ 307 $ 207 $ 299
Capitalized mining and other (2) 2 (59) (93)
Royalties and production taxes 13 10 -- --
Reclamation and mine closure costs 3 4 2 3
Costs applicable to sales 342 323 150 209
Depreciation and amortization 37 40 93 108
Total production costs $ 379 $ 363 $ 243 $ 317
(1) 2005 includes Jundee. 2004 includes Jundee and Bronzewing.
Pajingo Yandal(1) Tanami
--------------------- -------------------- --------------------
Six months ended June 30, 2005 2004 2005 2004 2005 2004
- ------------------------------ -------- -------- -------- -------- -------- --------
Tons Mined (000 dry
short tons) 321 310 6,036 4,583 996 8,430
Tons Milled/Processed (000) 333 392 1,261 1,560 2,328 2,211
Average Ore Grade (oz/ton) 0.273 0.280 0.139 0.124 0.120 0.150
Average Mill Recovery Rate 96.7% 96.2% 92.7% 92.8% 94.6% 95.3%
Ounces Produced (000) 87.9 113.3 166.1 188.2 268.3 317.7
Ounces Sold (000) 86.7 123.8 166.1 213.1 273.6 342.0
Equity Ounces Produced (000) 87.9 113.3 166.1 188.2 268.3 317.7
Equity Ounces Sold (000) 86.7 123.8 166.1 213.1 273.6 342.0
Production Costs Per Ounce:
Direct mining and
production costs $ 334 $ 228 $ 342 $ 261 $ 290 $ 236
Capitalized mining
and other (7) (3) 12 1 5 15
Royalties and production
taxes 14 11 11 8 18 23
Reclamation and mine
closure costs 2 1 4 5 3 2
Costs applicable to sales 343 237 369 275 316 276
Depreciation and
amortization 135 123 75 78 64 59
Total production costs $ 478 $ 360 $ 444 $ 353 $ 380 $ 335
(1) 2005 includes Jundee. 2004 includes Jundee and Bronzewing.
Kalgoorlie Martha
------------------------ -------------------------
Six months ended June 30, 2005 2004 2005 2004
- -------------------------------------- ---------- ---------- ---------- ----------
Tons Mined (000 dry short tons) 21,793 23,479 959 2,374
Tons Milled/Processed (000) 3,726 3,433 644 712
Average Ore Grade (oz/ton) 0.073 0.069 0.154 0.084
Average Mill Recovery Rate 87.2% 86.3% 92.7% 90.6%
Ounces Produced (000) 212.4 204.7 91.5 52.6
Ounces Sold (000) 209.6 220.4 90.6 52.7
Equity Ounces Produced (000) 212.4 204.7 91.5 52.6
Equity Ounces Sold (000) 209.6 220.4 90.6 52.7
Production Costs Per Ounce:
Direct mining and production costs $ 307 $ 302 $ 211 $ 352
Capitalized mining and other 10 (3) (55) (127)
Royalties and production taxes 12 9 -- --
Reclamation and mine closure costs 3 4 2 4
Costs applicable to sales 332 312 158 229
Depreciation and amortization 38 34 100 119
Total production costs $ 370 $ 346 $ 258 $ 348
(1) 2005 includes Jundee. 2004 includes Jundee and Bronzewing.
GOLD PRODUCTION -- OTHER
Batu Hijau, Minahasa,
Indonesia Indonesia
------------------------- -----------------------
Three months ended June 30, 2005 2004 2005 2004
- -------------------------------------- ---------- ---------- ---------- ----------
Tons Mined (000 dry short tons) 58,785 54,393 n/a n/a
Tons Milled/Processed (000):
Leach n/a n/a n/a n/a
Mill 12,301 13,528 n/a 170
Average Ore Grade (oz/ton) 0.019 0.019 n/a 0.158
Average Mill Recovery Rate 80.2% 79.4% n/a 90.1%
Ounces Produced (000) 183.8 204.8 -- 24.5
Ounces Sold (000) 174.9 197.6 -- 25.1
Equity Ounces Produced (000) 97.2 115.2 -- 23.0
Equity Ounces Sold (000) 92.5 111.2 -- 23.6
Production Costs Per Ounce:
Direct mining and production costs $ 142 $ 99 n/a $ 308
Capitalized mining and other (5) 18 n/a 11
Royalties and production taxes 10 8 n/a (9)
Reclamation and mine closure costs 2 1 n/a (6)
Costs applicable to sales 149 126 n/a 304
Depreciation and amortization 50 42 n/a 5
Total production costs $ 199 $ 168 n/a $ 309
Zarafshan, Ovacik,
Uzbekistan Turkey
----------------------- -----------------------
Three months ended June 30, 2005 2004 2005 2004
- -------------------------------------- ---------- ---------- ---------- ----------
Tons Mined (000 dry short tons) n/a n/a n/a 2,092
Tons Milled/Processed (000):
Leach 2,007 1,965 n/a n/a
Mill n/a n/a n/a 125
Average Ore Grade (oz/ton) 0.032 0.045 n/a 0.347
Average Mill Recovery Rate n/a n/a n/a 95.5%
Ounces Produced (000) 29.7 60.7 -- 41.1
Ounces Sold (000) 29.8 68.9 -- 69.5
Equity Ounces Produced (000) 29.7 60.7 -- 41.1
Equity Ounces Sold (000) 29.8 68.9 -- 69.5
Production Costs Per Ounce:
Direct mining and production costs $ 229 $ 143 n/a $ 192
Capitalized mining and other 4 2 n/a (11)
Royalties and production taxes -- -- n/a 13
Reclamation and mine closure costs 2 1 n/a 1
Costs applicable to sales 235 146 n/a 195
Depreciation and amortization 74 45 n/a 125
Total production costs $ 309 $ 191 n/a $ 320
Batu Hijau, Minahasa,
Indonesia Indonesia
------------------------- -----------------------
Six months ended June 30, 2005 2004 2005 2004
- -------------------------------------- ---------- ---------- ---------- ----------
Tons Mined (000 dry short tons) 118,983 112,313 n/a n/a
Tons Milled/Processed (000):
Leach n/a n/a n/a n/a
Mill 24,589 26,606 n/a 336
Average Ore Grade (oz/ton) 0.013 0.014 n/a 0.155
Average Mill Recovery Rate 78.7% 79.2% n/a 90.1%
Ounces Produced (000) 258.1 299.9 -- 46.8
Ounces Sold (000) 250.3 297.9 -- 53.0
Equity Ounces Produced (000) 136.5 168.7 -- 44.0
Equity Ounces Sold (000) 132.4 167.6 -- 49.8
Production Costs Per Ounce:
Direct mining and production costs $ 178 $ 99 n/a $ 302
Capitalized mining and other (22) 18 n/a 6
Royalties and production taxes 9 8 n/a --
Reclamation and mine closure costs 2 2 n/a --
Costs applicable to sales 167 127 n/a 308
Depreciation and amortization 60 42 n/a 53
Total production costs $ 227 $ 169 n/a $ 361
Zarafshan, Ovacik,
Uzbekistan Turkey
----------------------- -----------------------
Six months ended June 30, 2005 2004 2005 2004
- ---------------------------------------- ---------- ---------- ---------- ----------
Tons Mined (000 dry short tons) n/a n/a n/a 3,573
Tons Milled/Processed (000):
Leach 3,670 3,944 n/a n/a
Mill n/a n/a n/a 241
Average Ore Grade (oz/ton) 0.033 0.046 n/a 0.311
Average Mill Recovery Rate n/a n/a n/a 95.0%
Ounces Produced (000) 63.9 121.8 -- 71.1
Ounces Sold (000) 64.1 124.8 -- 75.4
Equity Ounces Produced (000) 63.9 121.8 -- 71.1
Equity Ounces Sold (000) 64.1 124.8 -- 75.4
Production Costs Per Ounce:
Direct mining and production costs $ 212 $ 145 n/a $ 208
Capitalized mining and other 2 2 n/a (20)
Royalties and production taxes -- -- n/a 14
Reclamation and mine closure costs 2 1 n/a 2
Costs applicable to sales 216 148 n/a 204
Depreciation and amortization 71 47 n/a 131
Total production costs $ 287 $ 195 n/a $ 335
BASE METAL SUMMARY -- BATU HIJAU
Three months ended Six months ended
June 30, June 30,
----------------------- -----------------------
Batu Hijau 2005 2004 2005 2004
- ---------------------------------------- ---------- ---------- ---------- ----------
Total tons mined (000) 58,785 54,393 118,983 112,313
Dry tons processed (000) 12,301 13,528 24,589 26,606
Average copper grade 0.75% 0.82% 0.64% 0.73%
Average recovery rate 89.0% 90.4% 84.6% 88.3%
Copper produced (000 lbs) 162,909 200,735 266,032 341,804
Copper sold (000 lbs) 154,001 189,952 254,089 321,185
Equity copper produced (000 lbs) 86,138 112,913 140,665 192,265
Equity copper sold (000 lbs) 81,428 106,848 134,350 180,667
Production Costs Per Pound:
Direct mining and production costs $ 0.36 $ 0.28 $ 0.55 $ 0.31
Capitalized mining and other 0.07 0.07 (0.03) 0.10
Royalties and production taxes 0.02 0.03 0.02 0.02
Reclamation and mine closure costs -- -- 0.01 --
Costs applicable to sales 0.45 0.38 0.55 0.43
Depreciation and amortization 0.13 0.11 0.18 0.13
Total production costs $ 0.58 $ 0.49 $ 0.73 $ 0.56
Smelting and refining (in millions) $ 38 $ 26 $ 62 $ 57
GOLD HEDGE POSITION -- AS OF JUNE 30, 2005
CURRENT MATURITY SUMMARY(1)(3) (000 OUNCES)
Gold Put Option Price Capped
Contracts Contracts
------------------- -------------------
Years Ozs Price(2) Ozs Price(2)
- -------------------- -------- -------- -------- --------
2005 108 $ 292 300 $ 350
2006 100 $ 338 -- --
2007 20 $ 397 -- --
2008 -- -- 1,000 $ 384
2009 -- -- 600 $ 381
2010 -- -- -- --
2011 -- -- 250 $ 392
Total/Average 228 $ 321 2,150 $ 379
The mark-to-market value of the gold put option contracts was negative $6
million at June 30, 2005. Newmont has established a policy in which it will, at
specified gold prices, purchase derivative contracts to offset legacy hedge
positions.
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 and Form 10-Q for the quarter ended
March 31, 2005 filed on April 29, 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
delivered its first of three annual installments of 161,111 ounces of
gold in June 2005. 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 second quarter earnings conference call and web cast
presentation will be held on July 27, 2005 beginning at 4:00 p.m. Eastern Time
(2:00 p.m. Mountain Time). To participate:
Dial-In Number: (210) 234-8000
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
Jennifer Van Dinter
Telephone: (303) 837-5165
Email: jennifer.vandinter@newmont.com
Media Contact
Heatheryn Higgins
Telephone: (303) 837-5248
Email: heatheryn.higgins@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- 07/27/2005
/CONTACT: Investors, Randy Engel, +1-303-837-6033,
randy.engel@newmont.com, or Jennifer Van Dinter, +1-303-837-5165,
jennifer.vandinter@newmont.com, or Media, Heatheryn Higgins, +1-303-837-5248,
heatheryn.higgins@newmont.com, all of Newmont Mining Corporation/
/Web site: http://www.newmont.com