Exhibit 99.1
NEWMONT MINING ANNOUNCES THIRD QUARTER NET INCOME OF $126 MILLION
($0.28 PER SHARE)
DENVER, Oct. 26 /PRNewswire-FirstCall/ -- Newmont Mining Corporation (NYSE:
NEM) today announced third quarter net income of $126 million ($0.28 per share)
compared with net income of $129 million ($0.29 per share) for the third quarter
of 2004. Third quarter highlights included:
* Consolidated gold sales of 2.2 million ounces at costs applicable to
sales of $238 per ounce;
* Net cash provided from operations of $437 million; and
* Cash and cash equivalents, short-term marketable securities and other
short-term investments of $2.0 billion.
Wayne W. Murdy, Chairman and Chief Executive Officer, said, "We realized
higher gold prices again this quarter, averaging $435 per ounce for the quarter
and $427 per ounce year to date. Although we continued to experience commodity
price escalation and selective labor pressures during the third quarter, higher
realized gold prices should enhance our operating margins in the fourth quarter.
For the year, we expect to sell approximately 6.5 million equity ounces of gold
at costs applicable to sales of approximately $240 per ounce. Our development
projects continue to proceed according to plan and we are confident that we will
again replace reserves in 2005."
Financial
(in millions, except per share) Q3 2005 Q3 2004 YTD 2005 YTD 2004
- ----------------------------------- ------------- ------------- ------------- -------------
Revenues $ 1,164 $ 1,144 $ 3,123 $ 3,232
Net cash from operations $ 437 $ 340 $ 761 $ 972
Net income $ 126 $ 129 $ 260 $ 253
Net income per common
share $ 0.28 $ 0.29 $ 0.58 $ 0.57
Operating
Consolidated gold sales
(000 ounces) 2,164 2,234 6,167 6,570
Equity gold sales
(000 ounces) 1,607 1,725 4,695 5,175
Average realized gold
price ($/ounce) $ 435 $ 403 $ 427 $ 404
Costs applicable to
sales ($/ounce) $ 238 $ 215 $ 240 $ 219
FINANCIAL & OPERATING REVIEW
Third quarter 2005 net income was $126 million ($0.28 per share) compared
with $129 million ($0.29 per share) for the third quarter of 2004. Results for
the third quarter of 2005 were partially impacted by the following items which
had the effect of increasing net income by $10 million ($0.03 per share):
* a $15.0 million ($0.03 per share) expense for environmental litigation
and reclamation costs at Minahasa in Indonesia; and
* a $25.0 million ($0.06 per share) gain on the sale of Kinross Gold
Corporation stock.
Results for the third quarter of 2004 were impacted by the following items
which had the effect of decreasing net income by $7 million ($0.02 per share):
* an $8 million ($0.02 per share) write down at Australia and Yanacocha;
* a $6 million ($0.01 per share) Australian legacy site reclamation
accrual; and
* a $7 million ($0.01 per share) gain on the sale of Bronzewing.
For the third quarter of 2005, the Company sold 2,164,200 ounces of gold on
a consolidated basis at an average realized price of $435 per ounce. For the
third quarter of 2004, the Company's consolidated gold sales were 2,233,800
ounces at an average realized price of $403 per ounce.
The Company generated net cash from operations of $437 million in the third
quarter of 2005, compared with $340 million in the year ago quarter.
OPERATING HIGHLIGHTS - NORTH AMERICA
North America Q3 2005 Q3 2004 YTD 2005 YTD 2004
- ----------------------------------- ------------- ------------- ------------- -------------
Consolidated gold sales
(000 ounces) 669 653 2,021 2,054
Equity gold sales
(000 ounces) 626 626 1,910 1,966
Consolidated costs applicable
to sales ($/ounce) $ 351 $ 290 $ 325 $ 286
In Nevada, gold ounces sold remained constant in the third quarter of 2005
compared to the same period in 2004 as a 21% increase in mill throughput and a
23% increase in heap leach ore placed were offset by an 11% decrease in mill ore
grade. Adverse mill grades were caused by poor underground mine conditions and
an underground labor shortage impacting the production rates of higher grade
underground ore zones. Costs applicable to sales per ounce increased 24% in the
third quarter of 2005 from the third quarter of 2004, primarily due to increased
labor costs, diesel and other commodity prices and higher underground contract
service costs. Significant increases in energy costs occurred following
hurricanes in the Gulf Coast of the United States in mid-2005. Experienced
miners, particularly in underground mines, remain in short supply in Nevada,
with labor rates increasing in line with the shortfall.
At Golden Giant in Canada, gold ounces sold increased 46% in the third
quarter of 2005 from the third quarter of 2004, attributable to a 29% increase
in mill throughput and a 16% increase in ore grade. Costs applicable to sales
per ounce decreased 32% in the third quarter of 2005 from the third quarter of
2004, primarily as a result of the increase in production, partially offset by
the appreciation of the Canadian dollar.
At Holloway in Canada, gold ounces sold remained constant in the third
quarter of 2005 compared to the same period of 2004. A 24% decrease in ore grade
was offset by a 4% increase in mill throughput and higher sales from inventory
built in 2004. Costs applicable to sales per ounce increased 65% in the third
quarter of 2005 from the third quarter of 2004 as a result of increased
development and definition drilling costs and the appreciation of the Canadian
dollar.
At La Herradura in Mexico, gold ounces sold increased 30% in the third
quarter of 2005 from the third quarter of 2004 primarily due to favorable timing
of flows from the leach pads.
OPERATING HIGHLIGHTS - SOUTH AMERICA
South America Q3 2005 Q3 2004 YTD 2005 YTD 2004
- ----------------------------------- ------------- ------------- ------------- -------------
Consolidated gold sales
(000 ounces) 800 778 2,310 2,210
Equity gold sales (000 ounces) 422 401 1,203 1,142
Consolidated costs applicable
to sales ($/ounce) $ 144 $ 147 $ 148 $ 149
At Yanacocha in Peru, gold ounces sold remained constant in the third
quarter of 2005 compared to the same period of 2004 as a 32% increase in ore
placed on the leach pads and a 5% increase in ore grade were offset by the
timing of flows from the leach pads and increased inventory. Costs applicable to
sales per ounce also remained constant as increased labor and commodity costs,
including diesel, were offset by the increase in production and the allocation
of costs to inventory.
At Kori Kollo in Bolivia, additional material from the Kori Kollo pit was
placed on the existing leach pad. Beginning in the third quarter of 2005, Kori
Kollo also began processing ore from the Kori Chaca pit on a new leach pad. This
resulted in a significant increase in ounces sold for the third quarter compared
to the comparative period of 2004. Costs applicable to sales per ounce decreased
significantly period to period primarily as a result of the increased
production.
OPERATING HIGHLIGHTS - AUSTRALIA/NEW ZEALAND
Australia/New Zealand Q3 2005 Q3 2004 YTD 2005 YTD 2004
- ----------------------------------- ------------- ------------- ------------- -------------
Consolidated sales
(000 ounces) 377 462 1,204 1,414
Equity gold sales
(000 ounces) 377 462 1,204 1,414
Consolidated costs applicable
to sales ($/ounce) $ 321 $ 276 $ 318 $ 276
At Pajingo in Australia, gold ounces sold decreased 7% in the third quarter
of 2005 from the third quarter of 2004, primarily due to a 20% decrease in ore
milled, as low grade stockpiles which supplemented production in 2004 have been
exhausted, partially offset by an 11% increase in ore grade milled. Costs
applicable to sales per ounce increased 15%, primarily due to lower production
and the appreciation of the Australian dollar.
At Jundee in Australia, gold ounces sold increased 6% in the third quarter
of 2005 from the third quarter of 2004, primarily due to a 7% increase in ore
grade milled. Costs applicable to sales per ounce increased 7% in the third
quarter of 2005 from the third quarter of 2004, primarily due to higher
underground contract services, diesel costs, and the appreciation of the
Australian dollar.
At Tanami in Australia, gold ounces sold decreased 32% in the third quarter
of 2005 from the third quarter of 2004, primarily due to a 21% decline in ore
grade from the Callie underground deposit, processing lower grade stockpiles at
Groundrush, and a 15% decrease in mill throughput. Costs applicable to sales per
ounce increased 21% in the third quarter of 2005 from the third quarter of 2004,
primarily due to lower gold production, higher diesel costs and the appreciation
of the Australian dollar.
At Kalgoorlie in Australia, gold ounces sold decreased 27% in the third
quarter of 2005 from the third quarter of 2004 primarily due to a 20% decline in
ore grade. Costs applicable to sales per ounce increased 28% in the third
quarter of 2005 from the third quarter of 2004, primarily due to lower
production and increased diesel, reagent and power costs, as well as the
appreciation of the Australian dollar.
At Martha in New Zealand, gold ounces sold remained constant in the third
quarter of 2005 compared to the third quarter of 2004. A 9% decrease in ore
milled was offset by a 3% increase in ore grade and a 4% increase in recovery.
Costs applicable to sales per ounce decreased 5% in the third quarter of 2005
from the third quarter of 2004, primarily as a result of higher by-product
revenue, partially offset by higher processing costs from harder ore.
OPERATING HIGHLIGHTS - INDONESIA
Batu Hijau Q3 2005 Q3 2004 YTD 2005 YTD 2004
- ----------------------------------- ------------- ------------- ------------- -------------
Consolidated copper sales
(million pounds) 190 198 444 519
Equity copper sales
(million pounds) 100 111 235 292
Consolidated costs applicable
to sales ($/pound copper) $ 0.45 $ 0.45 $ 0.51 $ 0.44
Consolidated gold sales
(000 ounces) 289 239 540 536
Equity gold sales (000 ounces) 153 134 285 302
Consolidated costs applicable
to sales ($/ounce gold) $ 133 $ 123 $ 149 $ 125
At Batu Hijau in Indonesia, copper sales decreased 4% and gold sales
increased 21% in the third quarter of 2005 from the third quarter of 2004. Costs
applicable to sales per pound of copper remained constant while costs applicable
to sales per ounce of gold increased 8% during the third quarter of 2005 from
the third quarter of 2004. Overall, operating costs increased primarily as a
result of increased fuel, maintenance, consumable, power and labor costs.
OPERATING HIGHLIGHTS - CENTRAL ASIA
Central Asia Q3 2005 Q3 2004 YTD 2005 YTD 2004
- ----------------------------------- ------------- ------------- ------------- -------------
Consolidated gold sales
(000 ounces) 29 81 93 281
Equity gold sales (000 ounces) 29 81 93 281
Consolidated costs applicable
to sales ($/ounce) $ 214 $ 188 $ 215 $ 174
At Zarafshan in Uzbekistan, gold ounces sold decreased 37% in the third
quarter of 2005 from the third quarter of 2004, due to a 3% decrease in ore
grade and lower production from leach pads. Costs applicable to sales per ounce
increased 27% in the third quarter of 2005 from the third quarter of 2004,
primarily as a result of the decrease in production and higher energy costs.
The Ovacik mine in Turkey was sold on March 1, 2005 to a Turkish company.
Operations were suspended in August 2004.
MERCHANT BANKING
Newmont Capital manages the Company's royalty and marketable securities
portfolios, as well as providing in-house merchant banking support. For the
third quarter of 2005, royalty and dividend income was $18 million, 10% lower
than the year ago quarter. Year-to-date income was $57 million, up approximately
19% over the comparable period last year. At the end of the third quarter of
2005, the market value of the marketable equity securities portfolio, after the
sale of Kinross Gold Corporation stock, was $881 million, an increase of $374
million from year-end 2004.
During the third quarter of 2005, Newmont Capital sold the Company's
remaining position in Kinross Gold Corporation for cash proceeds of $111 million
and a realized a pre-tax gain of $20 million. The sale of the Golden Grove
zinc/copper operation closed in July and generated cash proceeds of $142
million.
A prefeasibility study by outside consultants on Newmont's 100% owned
Alberta heavy oil project was completed during the quarter. The study estimated
that 165 million barrels are economically recoverable via steam assisted gravity
drainage wells with the potential for production of 25,000 barrels per day via
phased development. Newmont plans to complete environmental base line studies
and an infill well program in the first quarter of 2007, with potential
application for development in 2007. The Company will subsequently evaluate
value-realization options in 2007.
CASH, MARKETABLE SECURITIES AND DEBT
At the end of the third quarter, cash, short-term marketable securities and
other short-term investments totaled $2.0 billion. Outstanding debt totaled $2.0
billion. Of the outstanding debt, $657 million was Batu Hijau debt that is
non-recourse to the Company.
CAPITAL PROJECT DEVELOPMENT UPDATE
The Leeville underground project in Nevada began gold production in the
third quarter of 2005. The production shaft excavation is 94% complete to a
depth of 1,710 feet. Current plans call for the production shaft to begin
hoisting ore in the second quarter of 2006. Overall, construction is
approximately 80% complete with the shotcrete plant coming on line in November.
Prior to completion, gold production will occur from stopes that have been
developed in parallel with construction.
At the Phoenix project in Nevada, overall construction is approximately 70%
complete. Initial gold production is expected by the second quarter of 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. Project engineering is 30%
complete. The targeted project completion date remains mid-2008, depending on
the air permitting process.
At the Ahafo project in Ghana, engineering and procurement are essentially
complete, with the camp and general infrastructure construction progressing as
planned and the process plant just over 50% complete. Overall project
construction is approximately 60% complete. Mining equipment is arriving and
being assembled on schedule, with plans to start mining in early 2006.
Operations planning, staffing and training are progressing according to plan and
the project is on schedule to deliver first gold production by the second half
of 2006.
The Akyem project in Ghana was approved by the Newmont Board of Directors in
July 2005. An environmental impact statement was submitted to the Ghana
Environmental Protection Agency in early May. Production is expected to commence
in the second half of 2008.
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 $41 million in the third quarter of 2005
compared with $28 million in the year ago quarter. Advanced projects, research
and development expenditures were $18 million in the third quarter of 2005
compared with $25 million in the third quarter of 2004.
At the Minas Conga district in Peru, infill drilling intended to convert
non-reserve mineralization to reserves this year at the Perol and Chailhuagon
deposits is complete. Drill assay results as well as ongoing resource modeling
and engineering are advancing economic evaluations. Follow-up drilling at the
Amaro prospect continues to yield encouraging results with the potential
addition of reserves by year-end.
At the Ahafo project in Ghana, development drilling programs advanced the
geologic understanding of the deposits in the north and south areas. The
addition of reserves at Ahafo by year-end is possible as the result of new drill
information, updated block models and optimized engineering. Drilling of new
exploration targets and extensions of known mineralization provided encouraging
results.
Drilling programs in Nevada yielded positive results at the Carlin Trend and
Phoenix with reserve and non-reserve mineralization additions possible by
year-end.
Development drilling at the Tanami and Jundee underground operations in
Australia demonstrated positive results for the potential conversion of
non-reserve mineralization to reserves by year-end. Extension drilling at Martha
in New Zealand has provided encouraging results.
2005 GUIDANCE
The Company expects consolidated gold sales of approximately 8.6 million
ounces (approximately 6.5 million equity ounces) at costs applicable to sales of
approximately $240 per ounce in 2005. The Company expects consolidated copper
sales of approximately 625 million pounds (approximately 330 million equity
pounds) at costs applicable to sales of $0.47 per pound. Lower expected copper
sales at Batu Hijau are primarily the result of geotechnical issues experienced
in the first quarter.
Higher costs applicable to sales in Nevada in 2005 resulted primarily from
lower underground production caused by adverse ground conditions and skilled
labor shortages. To a lesser extent, ongoing input commodity price escalation
continues to adversely impact operating costs in Nevada. The Company expects
cost pressures in Nevada to continue into 2006. At Yanacocha in Peru, depending
on further mine plan optimization efforts, gold sales are expected to decline by
10% to 20% in 2006.
For 2005, exploration expenditures are expected in the range of $145 - $150
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, Nevada and Australia. For 2005, the Company again
expects to replace reserves.
Consolidated capital expenditures are expected to be $1.1 - $1.2 billion.
For site by site details, please refer to the supplemental 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 Nine Months Ended
September 30, September 30,
------------------------------ ------------------------------
2005 2004 2005 2004
------------- ------------- ------------- -------------
(unaudited, in millions except per share)
Revenues
Sales - gold, net $ 933 $ 897 $ 2,619 $ 2,644
Sales - base metals, net 231 247 504 588
1,164 1,144 3,123 3,232
Costs and expenses
Costs applicable to sales
(exclusive of depreciation,
depletion and amortization
shown separately below)
Gold 516 478 1,482 1,442
Base metals 86 91 227 227
Depreciation, depletion
and amortization 160 162 482 504
Exploration 41 28 107 76
Advanced projects, research
and development 18 25 50 59
General and administrative 32 22 95 80
Write down of long-lived
assets -- 10 2 26
Other, net 20 34 58 48
873 850 2,503 2,462
Other income (expense)
Other income, net 66 47 177 51
Interest expense, net (24) (27) (76) (77)
42 20 101 (26)
Income from continuing
operations before income
tax expense, minority
interest and equity income
of affiliates 333 314 721 744
Income tax expense (94) (94) (186) (214)
Minority interest in income
of subsidiaries (115) (90) (248) (230)
Equity income of affiliates -- -- 3 1
Income from continuing
operations 124 130 290 301
Gain (loss) from discontinued
operations 2 (1) (30) (1)
Cumulative effect of a change
in accounting principle -- -- -- (47)
Net income $ 126 $ 129 $ 260 $ 253
Income per common share
Basic and diluted:
Income from continuing
operations $ 0.28 $ 0.29 $ 0.65 $ 0.68
Loss from discontinued
operations -- -- (0.07) --
Cumulative effect of a
change in accounting
principle -- -- -- (0.11)
Net income $ 0.28 $ 0.29 $ 0.58 $ 0.57
Basic weighted-average
common shares outstanding 446 443 446 443
Diluted weighted-average
common shares outstanding 449 447 449 447
Cash dividends declared per
common share $ 0.10 $ 0.075 $ 0.30 $ 0.20
CONSOLIDATED BALANCE SHEETS
At At
September 30, December 31,
2005 2004
------------- -------------
(unaudited, in millions)
ASSETS
Cash and cash equivalents $ 1,095 $ 781
Marketable securities and other
short-term investments 952 943
Trade receivables 100 77
Accounts receivable 178 130
Inventories 342 249
Stockpiles and ore on leach pads 246 230
Other current assets 223 288
Current assets 3,136 2,698
Property, plant and mine development, net 5,527 5,165
Investments 795 386
Long-term stockpiles and ore on leach pads 575 525
Deferred income tax assets 633 492
Other long-term assets 297 265
Goodwill 2,992 2,994
Assets of operations held for sale -- 251
Total assets $ 13,955 $ 12,776
LIABILITIES
Current portion of long-term debt $ 217 $ 286
Accounts payable 237 224
Employee-related benefits 135 130
Other current liabilities and deferred
revenue 651 446
Current liabilities 1,240 1,086
Long-term debt, less current portion 1,790 1,316
Reclamation and remediation liabilities 415 421
Employee-related benefits 246 245
Deferred income tax liabilities 519 460
Other long-term liabilities and deferred
revenue 481 489
Liabilities of operations held for sale -- 46
Total liabilities 4,691 4,063
Minority interest in subsidiaries 918 775
STOCKHOLDERS' EQUITY
Common stock 664 656
Total stockholders' equity 8,346 7,938
Total liabilities and stockholders'
equity $ 13,955 $ 12,776
STATEMENTS OF CONSOLIDATED CASH FLOWS
Three Months Ended
September 30,
------------------------------
2005 2004
------------- -------------
(unaudited, in millions)
Operating activities:
Net income $ 126 $ 129
Adjustments to reconcile net income
to net cash provided by operating activities:
Depreciation, depletion and amortization 160 162
Loss (income) from discontinued operations (2) 1
Accretion of accumulated reclamation obligations 6 6
Amortization of deferred stripping costs, net (4) 24
Deferred income taxes (7) 41
Minority interest expense 115 90
Write-downs of inventories, stockpiles and
ore on leach pads 6 3
Write-downs of long-lived assets -- 10
Gain on investments, net (21) --
Gain on sale of assets (1) (22)
Hedge loss (gain), net 36 (36)
Other operating adjustments (2) 7
(Increase) decrease in operating assets:
Trade and accounts receivable 69 --
Inventories, stockpiles and ore on leach pads (90) (10)
Other assets (7) (8)
Increase (decrease) in operating liabilities:
Accounts payable and other accrued liabilities 63 (37)
Reclamation liabilities (10) (16)
Net cash provided from continuing operations 437 344
Net cash provided from discontinued operations -- (4)
Net cash from operations 437 340
Investing activities:
Additions to property, plant and mine development (355) (161)
Additions to property, plant and mine development
of discontinued operations -- (6)
Investments in marketable debt and equity
securities (488) (270)
Proceeds from sale of marketable debt and
equity securities 738 258
Proceeds from sale of assets 1 11
Proceeds from sale of discontinued operations 142 --
Other investing activities 1 2
Net cash provided by (used in) investing activities 39 (166)
Financing activities:
Repayment of debt (73) (64)
Dividends paid to common stockholders (45) (34)
Dividends paid to minority interests (14) (28)
Common stock issued for compensation plans 11 7
Change in restricted cash and other (1) (3)
Net cash used in financing activities (122) (122)
Effect of exchange rate changes on cash -- 2
Net change in cash and cash equivalents 354 54
Cash and cash equivalents at beginning of period 741 736
Cash and cash equivalents at end of period $ 1,095 $ 790
STATEMENTS OF CONSOLIDATED CASH FLOWS
Nine Months Ended
September 30,
------------------------------
2005 2004
------------- -------------
(unaudited, in millions)
Operating activities:
Net income $ 260 $ 253
Adjustments to reconcile net income to
net cash provided by operating activities:
Depreciation, depletion and amortization 482 504
Revenue from prepaid forward sales obligation (48) --
Loss from discontinued operations 30 1
Accretion of accumulated reclamation obligations 20 19
Amortization of deferred stripping costs, net (50) 8
Deferred income taxes (35) 58
Minority interest expense 248 230
Write-down of inventories, stockpiles and
ore on leach pads 12 11
Write-down of long-lived assets 2 26
(Gain) loss on investments, net (27) 39
Cumulative effect of change in accounting
principle, net -- 47
Gain on asset sales, net (36) (29)
Hedge loss (gain), net 84 (38)
Other operating adjustments 1 18
(Increase) decrease in operating assets:
Trade and accounts receivable 25 (18)
Inventories, stockpiles and ore on leach pads (161) 10
Other assets (3) (13)
Decrease in operating liabilities:
Accounts payable and other accrued liabilities (24) (129)
Reclamation liabilities (24) (33)
Net cash provided from continuing operations 756 964
Net cash provided from discontinued operations 5 8
Net cash from operations 761 972
Investing activities:
Additions to property, plant and mine development (890) (497)
Additions to property, plant and mine development
of discontinued operations (21) (23)
Investments in marketable debt and equity
securities (2,530) (1,340)
Proceeds from sale of marketable debt and
equity securities 2,562 680
Proceeds from sale of discontinued operations 142 --
Proceeds from sale of assets 61 23
Cash recorded upon consolidation of Batu Hijau -- 82
Other investing adjustments 1 2
Net cash used in investing activities (675) (1,073)
Financing activities:
Proceeds from debt, net 583 38
Repayment of debt (142) (141)
Dividends paid to common stockholders (134) (89)
Dividends paid to minority interests (85) (94)
Common stock issued for compensation plans 17 33
Change in restricted cash and other (8) 17
Net cash provided by (used in) financing activities 231 (236)
Effect of exchange rate changes on cash (3) (3)
Net change in cash and cash equivalents 314 (340)
Cash and cash equivalents at beginning of period 781 1,130
Cash and cash equivalents at end of period $ 1,095 $ 790
2005 GUIDANCE
Consolidated
Costs
Consolidated Applicable to
Equity Sales Sales Sales
North America Gold (000 oz) (000 oz) ($/oz)
- ------------------------- ------------- ------------- -------------
Nevada 2,300 2,450 $ 330
Golden Giant 155 155 $ 305
Holloway 85 85 $ 445
La Herradura 80 80 $ 165
Sub-total 2,620 2,770 $ 327
South America Gold (000 oz) (000 oz) ($/oz)
- ------------------------- ------------- ------------- -------------
Yanacocha 1,670 3,250 $ 145
Kori Kollo 75 85 $ 215
Sub-total 1,745 3,335 $ 147
Australia(1)/
New Zealand Gold (000 oz) (000 oz) ($/oz)
- ------------------------- ------------- ------------- -------------
Kalgoorlie 425 425 $ 340
Pajingo 195 195 $ 300
Tanami 490 490 $ 325
Jundee 330 330 $ 360
Martha 160 160 $ 175
Sub-total 1,600 1,600 $ 318
Indonesia Gold (000 oz) (000 oz) ($/oz)
- ------------------------- ------------- ------------- -------------
Batu Hijau 400 750 $ 150
Central Asia Gold (000 oz) (000 oz) ($/oz)
- ------------------------- ------------- ------------- -------------
Zarafshan 130 130 $ 220
TOTAL GOLD 6,500 8,600 $ 240
Copper (million lbs) (million lbs) ($/lb)
- ------------------------- ------------- ------------- -------------
Batu Hijau 330 625 $ 0.47
Golden Grove 25 25 $ 1.33
Consolidated Financial Guidance
($ million, except tax rate)
- ---------------------------------------------
Royalty and dividend income $70-$75
Depreciation, depletion & amortization $670-$700
Exploration $145-$150
Advanced projects, research and development $60-$70
General and administrative $125-$130
Interest expense, net $95-$105
Tax rate (assuming $450/oz gold) 28%-32%
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
Q3 2005 Q3 2004
----------------------------- -----------------------------
Equity Consolidated Equity Consolidated
Sales Sales Sales Sales
Ownership (000 ozs) (000 oz) (000 ozs) (000 oz)
------------- ------------- ------------- ------------- -------------
North America
Nevada 100.00% 554.2 597.1 570.4 597.4
Golden Giant 100.00% 38.3 38.3 26.2 26.2
Holloway 84.65% 13.1 13.1 13.3 13.3
La Herradura 44.00% 20.6 20.6 15.9 15.9
Sub-Total 626.2 669.1 625.8 652.8
South America
Yanacocha 51.35% 395.1 769.5 397.0 773.1
Kori Kollo 88.00% 26.7 30.3 4.0 4.5
Sub-Total 421.8 799.8 401.0 777.6
Australia/
New Zealand
Pajingo 100.00% 54.3 54.3 58.3 58.3
Yandal 100.00% 82.8 82.8 77.9 77.9
Tanami 100.00% 111.9 111.9 163.8 163.8
Kalgoorlie 50.00% 90.7 90.7 124.8 124.8
Martha 100.00% 37.3 37.3 37.6 37.6
Sub-Total 377.0 377.0 462.4 462.4
Indonesia
Batu Hijau 52.88% 152.9 289.3 134.1 238.5
Minahasa 94.00% -- -- 20.4 21.7
Sub-Total 152.9 289.3 154.5 260.2
Central Asia
Zarafshan 50.00% 29.0 29.0 46.1 46.1
Ovacik 100.00% -- -- 34.7 34.7
Sub-Total 29.0 29.0 80.8 80.8
Newmont 1,606.9 2,164.2 1,724.5 2,233.8
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% 1,681.1 1,792.2 1,747.8 1,835.3
Golden Giant 100.00% 116.0 116.0 118.4 118.4
Holloway
(84.65% owned) 84.65% 51.9 51.9 48.4 48.4
La Herradura
(44% owned) 44.00% 61.2 61.2 51.4 51.4
Sub-Total 1,910.2 2,021.3 1,966.0 2,053.5
South America
Yanacocha 51.35% 1,162.9 2,264.6 1,125.0 2,190.8
Kori Kollo 88.00% 39.7 45.1 16.8 19.1
Sub-Total 1,202.6 2,309.7 1,141.8 2,209.9
Australia/
New Zealand
Pajingo 100.00% 141.1 141.1 182.0 182.0
Yandal 100.00% 248.9 248.9 291.0 291.0
Tanami 100.00% 385.5 385.5 505.7 505.7
Kalgoorlie 50.00% 300.2 300.2 345.3 345.3
Martha 100.00% 127.9 127.9 90.3 90.3
Sub-Total 1,203.6 1,203.6 1,414.3 1,414.3
Indonesia
Batu Hijau 52.88% 285.3 539.6 301.7 536.3
Minahasa 94.00% -- -- 70.2 74.7
Sub-Total 285.3 539.6 371.9 611.0
Central Asia
Zarafshan 50.00% 93.1 93.1 170.9 170.9
Ovacik 100.00% 0.0 0.0 110.0 110.0
Sub-Total 93.1 93.1 280.9 280.9
Newmont 4,694.8 6,167.3 5,174.9 6,569.6
OPERATING STATISTICS SUMMARY
Australia/
North America South America New Zealand
------------------- ------------------- -------------------
Three months ended September 30, 2005 2004 2005 2004 2005 2004
- ---------------------------------------- -------- -------- -------- -------- -------- --------
Gold Summary
Ounces sold (000) 669.1 652.8 799.8 777.6 377.0 462.4
Equity ounces sold (000) 626.2 625.8 421.8 401.0 377.0 462.4
Cost applicable to sales
(in millions) $ 235 $ 189 $ 116 $ 114 $ 121 $ 127
Cost applicable to sales
per ounce $ 351 $ 290 $ 144 $ 147 $ 321 $ 276
Depreciation and amortization
(in millions) $ 39 $ 34 $ 51 $ 49 $ 29 $ 29
Depreciation and amortization
per ounce $ 58 $ 53 $ 64 $ 63 $ 76 $ 63
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
Central
Indonesia (1) Asia (2) Total
------------------- ------------------- -------------------
Three months ended September 30, 2005 2004 2005 2004 2005 2004
- ---------------------------------------- -------- -------- -------- -------- -------- --------
Gold Summary
Ounces sold (000) 289.3 260.2 29.0 80.8 2,164.2 2,233.8
Equity ounces sold
(000) 152.9 154.5 29.0 80.8 1,606.9 1,724.5
Cost applicable to
sales (in millions) $ 38 $ 33 $ 6 $ 15 $ 516 $ 478
Cost applicable to sales
per ounce $ 133 $ 126 $ 214 $ 188 $ 238 $ 215
Depreciation and
amortization
(in millions) $ 11 $ 8 $ 2 $ 8 $ 132 $ 128
Depreciation and
amortization per ounce $ 36 $ 29 $ 75 $ 102 $ 61 $ 58
Average realized price
per ounce $ 435 $ 403
(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
------------------- ------------------- -------------------
Nine months ended September 30, 2005 2004 2005 2004 2005 2004
- ---------------------------------------- -------- -------- -------- -------- -------- --------
Gold Summary
Ounces sold (000) 2,021.3 2,053.5 2,309.7 2,209.9 1,203.6 1,414.3
Equity ounces sold (000) 1,910.2 1,966.0 1,202.6 1,141.8 1,203.6 1,414.3
Cost applicable
to sales (in
millions) $ 656 $ 586 $ 343 $ 329 $ 383 $ 390
Cost applicable
to sales per
ounce $ 325 $ 286 $ 148 $ 149 $ 318 $ 276
Depreciation and
amortization (in
millions) $ 113 $ 113 $ 150 $ 153 $ 87 $ 95
Depreciation and
amortization per
ounce $ 56 $ 55 $ 65 $ 69 $ 72 $ 67
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
Central
Indonesia (1) Asia (2) Total
------------------- ------------------- -------------------
Nine months ended September 30, 2005 2004 2005 2004 2005 2004
- ---------------------------------------- -------- -------- -------- -------- -------- --------
Gold Summary
Ounces sold (000) 539.6 611.0 93.1 280.9 6,167.3 6,569.6
Equity ounces sold (000) 285.3 371.9 93.1 280.9 4,694.8 5,174.9
Cost applicable to sales
(in millions) $ 80 $ 88 $ 20 $ 49 $ 1,482 $ 1,442
Cost applicable to sales
per ounce $ 149 $ 142 $ 215 $ 174 $ 240 $ 219
Depreciation and
amortization (in
millions) $ 25 $ 24 $ 7 $ 24 $ 382 $ 408
Depreciation and
amortization per ounce $ 47 $ 38 $ 72 $ 85 $ 62 $ 62
Average realized price per
ounce $ 427 $ 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 Nine months ended
September 30, September 30,
--------------------- ---------------------
2005 2004 2005 2004
--------- --------- --------- ---------
Copper Summary
Pounds sold (000) 189,968 197,840 444,057 519,025
Equity pounds sold (000) 100,446 111,285 234,795 291,951
Cost applicable to sales
(in millions) $ 86 $ 90 $ 226 $ 226
Cost applicable to sales
per pound $ 0.45 $ 0.45 $ 0.51 $ 0.44
Depreciation and amortization
(in millions) $ 20 $ 22 $ 67 $ 65
Depreciation and amortization
per pound $ 0.11 $ 0.11 $ 0.15 $ 0.12
Average realized price
per pound $ 1.49 $ 1.42 $ 1.39 $ 1.31
GOLD PRODUCTION - AMERICAS
Nevada Canada (1) La Herradura
--------------------- -------------------- -------------------
Three months ended September 30, 2005 2004 2005 2004 2005 2004
- ----------------------------------- -------- -------- -------- -------- -------- --------
Tons Mined (000 dry short tons):
Open-Pit 55,434 44,076 n/a n/a 3,764 2,993
Underground 396 443 247 215 n/a n/a
Tons Milled/Processed (000):
Oxide 1,389 1,148 246 214 n/a n/a
Refractory 2,665 2,187 n/a n/a n/a n/a
Leach 6,301 5,135 n/a n/a 884 998
Average Ore Grade (oz/ ton):
Oxide 0.115 0.116 0.214 0.205 n/a n/a
Refractory 0.172 0.199 n/a n/a n/a n/a
Leach 0.024 0.027 n/a n/a 0.024 0.028
Average Mill Recovery Rate:
Oxide 77.4% 79.5% 95.2% 93.8% n/a n/a
Refractory 89.8% 90.4% n/a n/a n/a n/a
Ounces Produced (000): 568.0 597.7 50.8 40.3 20.6 15.9
Ounces Sold (000): 597.1 597.4 51.4 39.5 20.6 15.9
Equity Ounces Produced (000):
Oxide 102.8 103.8 50.8 40.3 n/a n/a
Refractory 336.6 388.0 n/a n/a n/a n/a
Leach 85.7 78.9 n/a n/a 20.6 15.9
Total 525.1 570.7 50.8 40.3 20.6 15.9
Equity Ounces Sold (000) 554.2 570.4 51.4 39.5 20.6 15.9
Production Costs Per Ounce:
Direct mining and
production costs $ 368 $ 300 $ 365 $ 401 $ 218 $ 188
Capitalized mining
and other (23) (18) 1 1 (50) (9)
Royalties and production
taxes 8 2 -- -- -- --
Reclamation and mine
closure costs 3 2 3 2 2 2
Costs applicable to sales 356 286 369 404 170 181
Depreciation and amortization 53 49 111 96 61 104
Total production costs $ 409 $ 335 $ 480 $ 500 $ 231 $ 285
(1) Includes Golden Giant and Holloway
Kori Kollo,
Yanacocha, Peru Bolivia
--------------------- ---------------------
Three months ended September 30, 2005 2004 2005 2004
- ------------------------------------- --------- --------- --------- ---------
Tons Mined (000 dry short tons):
Open-Pit 62,886 50,258 8,750 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 48,670 36,913 8,321 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 0.030 0.028 0.013 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): 763.6 754.5 35.1 5.1
Ounces Sold (000): 769.5 773.1 30.3 4.5
Equity Ounces Produced (000):
Oxide n/a n/a n/a n/a
Refractory n/a n/a n/a n/a
Leach 392.1 387.4 30.9 4.5
Total 392.1 387.4 30.9 4.5
Equity Ounces Sold (000) 395.1 397.0 26.7 4.0
Production Costs Per Ounce:
Direct mining and production costs $ 146 $ 147 $ 125 $ 230
Capitalized mining and other (7) (6) (6) (13)
Royalties and production taxes 3 3 19 17
Reclamation and mine closure costs 2 2 11 58
Costs applicable to sales 144 146 149 292
Depreciation and amortization 65 63 33 80
Total production costs $ 209 $ 209 $ 182 $ 372
(1) Includes Golden Giant and Holloway
Nevada Canada (1) La Herradura
--------------------- -------------------- -------------------
Nine months ended September 30, 2005 2004 2005 2004 2005 2004
- ----------------------------------- -------- -------- -------- -------- -------- --------
Tons Mined (000 dry short tons):
Open-Pit 158,633 144,523 n/a n/a 10,142 8,509
Underground 1,252 1,202 792 740 n/a n/a
Tons Milled/Processed
(000):
Oxide 4,065 3,190 798 740 n/a n/a
Refractory 7,270 6,541 n/a n/a n/a n/a
Leach 17,363 14,211 n/a n/a 2,793 3,112
Average Ore Grade (oz/ton):
Oxide 0.109 0.131 0.217 0.233 n/a n/a
Refractory 0.183 0.193 n/a n/a n/a n/a
Leach 0.025 0.024 n/a n/a 0.028 0.027
Average Mill Recovery Rate:
Oxide 75.6% 79.0% 95.0% 94.3% n/a n/a
Refractory 90.1% 90.5% n/a n/a n/a n/a
Ounces Produced (000): 1,736.3 1,756.9 167.9 164.7 61.2 51.4
Ounces Sold (000): 1,792.2 1,835.3 167.9 166.8 61.2 51.4
Equity Ounces Produced (000):
Oxide 310.2 330.3 167.9 164.7 n/a n/a
Refractory 1,038.1 1,091.1 n/a n/a n/a n/a
Leach 276.9 247.9 n/a n/a 61.2 51.4
Total 1,625.2 1,669.3 167.9 164.7 61.2 51.4
Equity Ounces Sold (000) 1,681.1 1,747.8 167.9 166.8 61.2 51.4
Production Costs Per Ounce:
Direct mining and
production costs $ 345 $ 311 $ 356 $ 312 $ 197 $ 158
Capitalized mining
and other (30) (32) 1 1 (27) (2)
Royalties and production
taxes 9 5 1 2 -- --
Reclamation and mine
closure costs 3 2 3 1 2 1
Costs applicable to sale 327 286 361 316 172 157
Depreciation and
amortization 51 52 103 82 57 76
Total production costs $ 378 $ 338 $ 464 $ 398 $ 229 $ 233
(1) Includes Golden Giant and Holloway
Kori Kollo,
Yanacocha, Peru Bolivia
--------------------- ---------------------
Nine months ended September 30, 2005 2004 2005 2004
- ------------------------------------- --------- --------- --------- ---------
Tons Mined (000 dry short tons):
Open-Pit 165,871 148,295 8,750 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 110,430 102,079 8,321 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 0.024 0.013 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): 2,268.7 2,170.0 50.9 19.6
Ounces Sold (000): 2,264.6 2,190.8 45.1 19.1
Equity Ounces Produced (000):
Oxide n/a n/a n/a n/a
Refractory n/a n/a n/a n/a
Leach 1,165.0 1,114.3 44.7 17.2
Total 1,165.0 1,114.3 44.7 17.2
Equity Ounces Sold (000) 1,162.9 1,125.0 39.7 16.8
Production Costs Per Ounce:
Direct mining and production costs $ 150 $ 148 $ 161 $ 266
Capitalized mining and other (8) (6) (11) 114
Royalties and production taxes 3 2 19 16
Reclamation and mine closure costs 2 2 22 41
Costs applicable to sales 147 146 191 437
Depreciation and amortization 65 69 32 103
Total production costs $ 212 $ 215 $ 223 $ 540
(1) Includes Golden Giant and Holloway
GOLD PRODUCTION - AUSTRALIA/NEW ZEALAND
Pajingo Yandal (1) Tanami
---------------------------- ---------------------------- ----------------------------
Three months ended September 30, 2005 2004 2005 2004 2005 2004
- -------------------------------- ------------ ------------ ------------ ------------ ------------ ------------
Tons Mined (000 dry short tons) 162 161 6,147 1,738 549 2,732
Tons Milled/Processed (000) 168 209 640 637 980 1,157
Average Ore Grade (oz/ton) 0.328 0.296 0.144 0.134 0.120 0.152
Average Mill Recovery Rate 96.3% 97.1% 90.9% 92.6% 95.2% 95.1%
Ounces Produced (000) 54.2 58.3 83.4 78.0 112.0 166.0
Ounces Sold (000) 54.3 58.3 82.8 77.9 111.9 163.8
Equity Ounces Produced (000) 54.2 58.3 83.4 78.0 112.0 166.0
Equity Ounces Sold (000) 54.3 58.3 82.8 77.9 111.9 163.8
Production Costs Per Ounce:
Direct mining and production
costs $ 259 $ 224 $ 319 $ 297 $ 326 $ 214
Capitalized mining and other (1) -- (1) (1) (1) 42
Royalties and production
taxes 12 11 11 12 15 26
Reclamation and mine closure
costs 2 1 4 4 4 2
Costs applicable to sales 272 236 333 312 344 284
Depreciation and amortization 126 116 85 63 66 55
Total production costs $ 398 $ 352 $ 418 $ 375 $ 410 $ 339
(1) 2005 includes Jundee. 2004 includes Jundee and Bronzewing.
Kalgoorlie Martha
------------------------ ------------------------
Three months ended September 30, 2005 2004 2005 2004
- ----------------------------------- ---------- ---------- ---------- ----------
Tons Mined (000 dry short tons) 12,037 10,549 632 1,250
Tons Milled/Processed (000) 1,819 1,839 315 345
Average Ore Grade (oz/ton) 0.064 0.079 0.125 0.121
Average Mill Recovery Rate 85.4% 88.2% 93.5% 89.6%
Ounces Produced (000) 87.5 124.2 37.5 37.9
Ounces Sold (000) 90.7 124.8 37.3 37.6
Equity Ounces Produced (000) 87.5 124.2 37.5 37.9
Equity Ounces Sold (000) 90.7 124.8 37.3 37.6
Production Costs Per Ounce:
Direct mining and production
costs $ 383 $ 226 $ 247 $ 231
Capitalized mining and other (37) 43 (53) (26)
Royalties and production taxes 12 10 -- --
Reclamation and mine closure
costs 3 3 3 3
Costs applicable to sales 361 282 197 208
Depreciation and amortization 43 35 91 100
Total production costs $ 404 $ 317 $ 288 $ 308
(1) 2005 includes Jundee. 2004 includes Jundee and Bronzewing.
Pajingo Yandal (1) Tanami
---------------------------- ---------------------------- ----------------------------
Nine months ended September 30, 2005 2004 2005 2004 2005 2004
- ------------------------------- ------------ ------------ ------------ ------------ ------------ ------------
Tons Mined (000 dry short tons) 482 471 12,183 6,321 1,545 11,162
Tons Milled/Processed (000) 501 601 1,901 2,197 3,308 3,368
Average Ore Grade (oz/ton) 0.291 0.286 0.141 0.127 0.120 0.151
Average Mill Recovery Rate 96.6% 96.5% 92.1% 92.7% 94.8% 95.2%
Ounces Produced (000) 142.1 171.6 249.4 266.3 380.3 483.6
Ounces Sold (000) 141.1 182.0 248.9 291.0 385.5 505.7
Equity Ounces Produced (000) 142.1 171.6 249.4 266.3 380.3 483.6
Equity Ounces Sold (000) 141.1 182.0 248.9 291.0 385.5 505.7
Production Costs Per Ounce:
Direct mining and
production costs $ 306 $ 227 $ 334 $ 271 $ 301 $ 229
Capitalized mining and
other (5) (2) 8 -- 3 23
Royalties and production
taxes 13 11 11 9 17 24
Reclamation and mine
closure costs 2 1 4 5 3 2
Costs applicable to sales 316 237 357 285 324 278
Depreciation and
amortization 131 121 78 74 64 58
Total production costs $ 447 $ 358 $ 435 $ 359 $ 388 $ 336
(1) 2005 includes Jundee. 2004 includes Jundee and Bronzewing.
Kalgoorlie Martha
------------------------- -------------------------
Nine months ended September 30, 2005 2004 2005 2004
- ---------------------------------------- ---------- ---------- ---------- ----------
Tons Mined (000 dry short tons) 33,830 34,028 1,591 3,624
Tons Milled/Processed (000) 5,545 5,272 959 1,057
Average Ore Grade (oz/ton) 0.070 0.073 0.144 0.096
Average Mill Recovery Rate 86.7% 87.0% 92.9% 90.2%
Ounces Produced (000) 299.9 329.0 128.9 90.5
Ounces Sold (000) 300.2 345.3 127.9 90.3
Equity Ounces Produced (000) 299.9 329.0 128.9 90.5
Equity Ounces Sold (000) 300.2 345.3 127.9 90.3
Production Costs Per Ounce:
Direct mining and production costs $ 330 $ 273 $ 221 $ 302
Capitalized mining and other (4) 14 (55) (85)
Royalties and production taxes 12 10 -- --
Reclamation and mine closure costs 3 4 3 3
Costs applicable to sales 341 301 169 220
Depreciation and amortization 40 34 97 111
Total production costs $ 381 $ 335 $ 266 $ 331
(1) 2005 includes Jundee. 2004 includes Jundee and Bronzewing.
GOLD PRODUCTION - OTHER
Batu Hijau, Minahasa,
Indonesia Indonesia
---------------------- ---------------------
Three months ended September 30, 2005 2004 2005 2004
- ---------------------------------------- --------- --------- --------- ---------
Tons Mined (000 dry short tons) 54,869 59,595 n/a n/a
Tons Milled/Processed (000):
Leach n/a n/a n/a n/a
Mill 13,858 13,213 n/a 105
Average Ore Grade (oz/ton) 0.028 0.023 n/a 0.167
Average Mill Recovery Rate 82.5% 83.3% n/a 91.6%
Ounces Produced (000) 316.9 246.2 -- 16.9
Ounces Sold (000) 289.3 238.5 -- 21.7
Equity Ounces Produced (000) 167.5 138.5 -- 15.9
Equity Ounces Sold (000) 152.9 134.1 -- 20.4
Production Costs Per Ounce:
Direct mining and production costs $ 115 $ 95 n/a $ 117
Capitalized mining and other 8 18 n/a 2
Royalties and production taxes 9 9 n/a 27
Reclamation and mine closure costs 1 1 n/a 13
Costs applicable to sales 133 123 n/a 159
Depreciation and amortization 36 33 n/a (19)
Total production costs $ 169 $ 156 n/a $ 140
Zarafshan, Ovacik,
Uzbekistan Turkey
---------------------- ---------------------
Three months ended September 30, 2005 2004 2005 2004
- ---------------------------------------- --------- --------- --------- ---------
Tons Mined (000 dry short tons) n/a n/a n/a 1,086
Tons Milled/Processed (000):
Leach 1,999 1,986 n/a n/a
Mill n/a n/a n/a 90
Average Ore Grade (oz/ton) 0.037 0.038 n/a 0.346
Average Mill Recovery Rate n/a n/a n/a 96.2%
Ounces Produced (000) 29.5 44.3 -- 33.8
Ounces Sold (000) 29.0 46.1 -- 34.7
Equity Ounces Produced (000) 29.5 44.3 -- 33.8
Equity Ounces Sold (000) 29.0 46.1 -- 34.7
Production Costs Per Ounce:
Direct mining and production costs $ 210 $ 164 n/a $ 187
Capitalized mining and other 2 2 n/a 10
Royalties and production taxes -- -- n/a 14
Reclamation and mine closure costs 2 2 n/a 3
Costs applicable to sales 214 168 n/a 214
Depreciation and amortization 75 51 n/a 169
Total production costs $ 289 $ 219 n/a $ 383
Batu Hijau, Minahasa,
Indonesia Indonesia
---------------------- ---------------------
Nine months ended September 30, 2005 2004 2005 2004
- ---------------------------------------- --------- --------- --------- ---------
Tons Mined (000 dry short tons) 173,853 171,907 n/a n/a
Tons Milled/Processed (000):
Leach n/a n/a n/a n/a
Mill 38,447 39,819 n/a 441
Average Ore Grade (oz/ton) 0.019 0.017 n/a 0.158
Average Mill Recovery Rate 80.7% 81.0% n/a 90.5%
Ounces Produced (000) 574.9 546.1 -- 63.8
Ounces Sold (000) 539.6 536.3 -- 74.7
Equity Ounces Produced (000) 304.0 307.2 -- 59.9
Equity Ounces Sold (000) 285.3 301.7 -- 70.2
Production Costs Per Ounce:
Direct mining and production costs $ 145 $ 98 n/a $ 248
Capitalized mining and other (6) 18 n/a 5
Royalties and production taxes 9 8 n/a 8
Reclamation and mine closure costs 1 1 n/a 4
Costs applicable to sales 149 125 n/a 265
Depreciation and amortization 47 38 n/a 32
Total production costs $ 196 $ 163 n/a $ 297
Zarafshan, Ovacik,
Uzbekistan Turkey
---------------------- ---------------------
Nine months ended September 30, 2005 2004 2005 2004
- ---------------------------------------- --------- --------- --------- ---------
Tons Mined (000 dry short tons) n/a n/a n/a 4,659
Tons Milled/Processed (000):
Leach 5,669 5,929 n/a n/a
Mill n/a n/a n/a 331
Average Ore Grade (oz/ton) 0.034 0.043 n/a 0.320
Average Mill Recovery Rate n/a n/a n/a 95.4%
Ounces Produced (000) 93.5 166.1 -- 104.8
Ounces Sold (000) 93.1 170.9 -- 110.0
Equity Ounces Produced (000) 93.5 166.1 -- 104.8
Equity Ounces Sold (000) 93.1 170.9 -- 110.0
Production Costs Per Ounce:
Direct mining and production costs $ 211 $ 150 n/a $ 202
Capitalized mining and other 2 2 n/a (11)
Royalties and production taxes -- -- n/a 14
Reclamation and mine closure costs 2 1 n/a 2
Costs applicable to sales 215 153 n/a 207
Depreciation and amortization 72 48 n/a 143
Total production costs $ 287 $ 201 n/a $ 350
COPPER SUMMARY - BATU HIJAU
Three months ended Nine months ended
September 30, September 30,
---------------------------- ----------------------------
Batu Hijau 2005 2004 2005 2004
- ----------------------------------- ------------ ------------ ------------ ------------
Total tons mined (000) 54,869 59,595 173,853 171,907
Dry tons processed (000) 13,858 13,213 38,447 39,819
Average copper grade 0.83% 0.88% 0.71% 0.78%
Average recovery rate 90.7% 89.7% 87.2% 88.8%
Copper produced (000 lbs) 209,183 204,217 475,216 546,021
Copper sold (000 lbs) 189,968 197,840 444,057 519,025
Equity copper produced (000 lbs) 110,606 114,872 251,270 307,137
Equity copper sold (000 lbs) 100,446 111,285 234,795 291,951
Production Costs Per Pound:
Direct mining and
production costs $ 0.34 $ 0.34 $ 0.46 $ 0.32
Capitalized mining and other 0.08 0.08 0.03 0.09
Royalties and production taxes 0.03 0.03 0.02 0.03
Reclamation and mine
closure costs -- -- -- --
Costs applicable to sales 0.45 0.45 0.51 0.44
Depreciation and amortization 0.11 0.11 0.15 0.12
Total production costs $ 0.56 $ 0.56 $ 0.66 $ 0.56
Smelting and refining
(in millions) $ 51 $ 34 $ 113 $ 91
GOLD HEDGE POSITION - AS OF SEPTEMBER 30, 2005
CURRENT MATURITY SUMMARY (1) (3) (000 OUNCES)
Gold Put Option Price Capped
Contracts Contracts
------------------- -------------------
Years Ozs Price(2) Ozs Price(2)
- -------------------- -------- -------- -------- --------
2005 53 $ 292 150 $ 350
2006 100 $ 338 -- --
2007 20 $ 397 -- --
2008 -- -- 1,000 $ 384
2009 -- -- 600 $ 381
2010 -- -- -- --
2011 -- -- 250 $ 392
Total/Average 173 $ 330 2,000 $ 382
The mark-to-market value of the gold put option contracts was negative $5
million at September 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 June 30, 2005
filed on August 1, 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 third quarter earnings conference call and web cast
presentation will be held on October 26, 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 John Gaensbauer
Telephone: (303) 837-6033 Telephone: (303) 837-5153
Email: Email:
randy.engel@newmont.com john.gaensbauer@newmont.com
Media Contacts
Deb Witmer Heatheryn Higgins
Telephone: (303) 837-5308 Telephone: (303) 837-5248
Email: Email:
deb.witmer@newmont.com 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 development, construction, 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 and dividend
income. 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- 10/26/2005
/CONTACT: Investors, Randy Engel, +1-303-837-6033,
randy.engel@newmont.com, or John Gaensbauer, +1-303-837-5153,
john.gaensbauer@newmont.com, or Media, Deb Witmer, +1-303-837-5308,
deb.witmer@newmont.com, or Heatheryn Higgins, +1-303-837-5248,
heatheryn.higgins@newmont.come, all of Newmont Mining Corporation/
/Web site: http://www.newmont.com /
(NEM)