Exhibit 99.1
2005 OPERATING HIGHLIGHTS; PRODUCTION AND COST OUTLOOK; POWER PLANT AND AKYEM
PROJECT UPDATE
DENVER, Jan. 18 /PRNewswire-FirstCall/ -- Newmont Mining Corporation (NYSE:
NEM) today announced full-year 2005 consolidated gold sales of 8.6 million
ounces (equity gold sales of 6.5 million ounces) and costs applicable to sales
of approximately $238 per ounce. The Company also announced that it will again
replace proven and probable gold reserves in 2005.
Additionally, the Company announced that it has signed a definitive
agreement to acquire the remaining 15% interest in the Akyem project in Ghana.
The transaction is expected to close by the end of January 2006. The Company
also received final Board of Directors approval for its 200 megawatt, coal-fired
power plant in Nevada. Newmont will proceed immediately with the development of
the power plant, targeting completion in 2008.
Finally, Newmont announced that it expects consolidated gold sales of
approximately 8 million ounces (approximately 6.25 million equity ounces) in
2006 at costs applicable to sales of approximately $270-$280 per ounce. As a
result of lower production from Yanacocha in Peru, planned mine closures and
previously announced asset sales, equity gold sales are expected to decline by
approximately 3% in 2006 and in 2007. Costs applicable to sales are expected to
improve as gold sales increase after 2007 with the completion of the Leeville,
Phoenix and power plant projects in Nevada, and the Ahafo and Akyem projects in
Ghana.
Wayne W. Murdy, Chairman and Chief Executive Officer, said, "With approval
to move forward with the Nevada power plant and the development of our new mines
in Nevada and Ghana, we are well positioned to leverage gold price exposure for
our shareholders. And, with the strongest balance sheet in the industry, we
intend to enhance our growth profile through an aggressive program of project
development initiatives and strategic acquisitions."
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 production and sales;
(ii) estimates of future costs applicable to sales; (iii) statements regarding
future acquisitions; and (iv) estimates regarding timing of future development
and construction. 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- 01/18/2006
/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, Heatheryn Higgins, +1-303-837-5248,
heatheryn.higgins@newmont.com, all of Newmont Mining Corporation/