Exhibit 99.1
NEWMONT MINING CORPORATION FIRST QUARTER 2006 RESULTS
First Quarter Income From Continuing Operations Rises to $213 Million
($0.48 Per Share); On Rising Gold Prices and Targeted Operating Performance
DENVER, April 20 /PRNewswire-FirstCall/ -- Newmont Mining Corporation
(NYSE: NEM) today announced first quarter income from continuing operations of
$213 million ($0.48 per share) compared with $85 million ($0.19 per share) for
the first quarter of 2005. First quarter net income from continuing operations
was positively impacted by a $48 million ($0.11 per share) tax adjustment.
First quarter highlights included:
* Consolidated gold sales of 1.8 million ounces (1.4 million equity
ounces) at costs applicable to sales of $275 per ounce and an average
realized gold price of $555 per ounce;
* Net cash provided by continuing operations of $240 million, after a
$164 million increase in working capital; and
* Cash and cash equivalents, marketable securities and short-term
investments of $1.5 billion.
Wayne W. Murdy, Chairman and Chief Executive Officer, said, "Our first
quarter's results reflect strong margin and earnings per share growth from a
higher realized gold price of $555 per ounce and our continued focus on cost
containment. With the current gold price in excess of $600 per ounce, we expect
to deliver expanding gold margins for our shareholders."
FINANCIAL (in millions, except per share) First Quarter 2006 First Quarter 2005
------------------------------------------- ------------------ ------------------
Revenues $ 1,148 $ 945
Net cash provided from continuing
operations $ 240 $ 187
Income from continuing operations $ 213 $ 85
Income from continuing operations
per common share $ 0.48 $ 0.19
OPERATING
Consolidated gold sales (000 ounces)(1) 1,838.6 1,974.0
Equity gold sales (000 ounces)(1) 1,392.1 1,550.6
Average realized gold price ($/ounce) $ 555 $ 425
Costs applicable to sales ($/ounce) $ 275 $ 237
1. Includes 14,200 ounces sold in 2006 from incidental sales during
start- up at Leeville and Phoenix, and 13,300 ounces in 2006 (20,000
in 2005) from the Holloway discontinued operation.
FINANCIAL AND OPERATING REVIEW
First quarter 2006 income from continuing operations was $213 million
($0.48 per share), compared with $85 million ($0.19 per share) for the first
quarter of 2005. Income from continuing operations for the first quarter was
impacted by the following items:
First Quarter 2006 First Quarter 2005
---------------------- ----------------------
IMPACT OF THE FOLLOWING
TRANSACTIONS (after-tax) $ Million EPS $ Million EPS
------------------------------ --------- --------- --------- ---------
Tax estimate revisions
- Australia $ 48 $ 0.11 $ 19 $ 0.04
Buyat Bay litigation
expenses $ (2) $ (0.00) $ (5) $ (0.01)
Gain on sale of Bermejal -- -- $ 20 $ 0.04
Nevada waste dump slide
expenses -- -- $ (4) $ (0.01)
These items had the net effect of increasing income from continuing
operations for the first quarter of 2006 by $46 million ($0.11 per share) and
increasing income from continuing operations for the first quarter of 2005 by
$30 million ($0.06 per share).
The Company generated net cash from continuing operations of $240 million
in the first quarter of 2006, after a $164 million increase in working capital.
OPERATING HIGHLIGHTS
NEVADA First Quarter 2006 First Quarter 2005
----------------------------------- ------------------ ------------------
Consolidated gold sales
(000 ounces) 535.0 588.6
Equity gold sales (000 ounces) 489.3 557.5
Consolidated costs applicable to
sales ($/ounce) $ 395 $ 309
In Nevada, gold ounces sold decreased 9% during the first quarter of 2006
compared with the same period in 2005, primarily as a result of a 14% decrease
in mill ore grade. The decrease in mill ore grade resulted from mining lower
grades at the Midas and Deep Post underground mines. Mill throughput was lower
as a result of 14 days of unplanned downtime at Mill 5. Costs applicable to
sales per ounce increased 28%, primarily due to a decrease in ounces produced
and increased labor, diesel, cyanide and underground contract service costs, as
well as a change in accounting for deferred stripping.
During the second quarter, costs applicable to sales per ounce are expected
to temporarily increase as a result of regularly planned annual maintenance at
Mill 6.
YANACOCHA First Quarter 2006 First Quarter 2005
----------------------------------- ------------------ ------------------
Consolidated gold sales
(000 ounces) 769.9 772.9
Equity gold sales (000 ounces) 395.3 396.9
Consolidated costs applicable to
sales ($/ounce) $ 161 $ 143
At Yanacocha, gold ounces sold remained constant in the first quarter of
2006 from the first quarter of 2005 as a 25% increase in ore grade and a 19%
increase in tons of ore placed were offset by the timing of flows from the leach
pads. The increase in ore placed resulted from an increase in tons mined and
lower waste removal at the La Quinua and Yanacocha pits. Ore grade also
increased at La Quinua, as mining accessed higher grade ore at the bottom of the
pit. Costs applicable to sales per ounce increased 13% due to the increase in
tons mined, increased consumption of higher priced commodities, and from higher
labor and royalty costs resulting from increased gold prices.
AUSTRALIA/NEW ZEALAND First Quarter 2006 First Quarter 2005
----------------------------------- ------------------ ------------------
Consolidated gold sales
(000 ounces) 333.5 439.3
Equity gold sales (000 ounces) 333.5 439.3
Consolidated costs applicable to
sales ($/ounce) $ 384 $ 303
In Australia and New Zealand, gold ounces sold declined 24% in the first
quarter of 2006 as compared with the same period in 2005, primarily due to lower
grades at Kalgoorlie, Jundee and Martha, combined with lower throughput at
Tanami and Pajingo. Costs applicable to sales per ounce increased 27% in the
first quarter of 2006 from 2005, primarily due to the decrease in ounces sold.
At Tanami in Australia, gold ounces sold decreased 26% in the first quarter
of 2006 from the first quarter of 2005, primarily due to a 30% decline in mill
throughput resulting from the completion of processing Groundrush stockpiles.
Costs applicable to sales per ounce increased 19%, primarily due to lower gold
production.
At Kalgoorlie in Australia, gold ounces sold decreased 19% in the first
quarter of 2006 from the first quarter of 2005, primarily due to a 19% decrease
in ore grade milled and a 7% decrease in tons milled. Costs applicable to sales
per ounce increased 43%, primarily due to lower gold production, and increased
maintenance, diesel and reagent costs.
At Jundee in Australia, gold ounces sold decreased 29% in the first quarter
of 2006 from the first quarter of 2005, primarily due to a 12% decrease in tons
milled and a 17% decrease in mill ore grade. The decrease in tons milled was
attributable to severe weather conditions and flooding, causing an extended mill
shutdown. Costs applicable to sales per ounce increased 25%, primarily
attributable to lower gold production and higher maintenance costs.
At Pajingo in Australia, gold ounces sold decreased 27% in the first
quarter of 2006 from the first quarter of 2005, primarily due to a 32% decrease
in tons milled resulting from ground control and ventilation system repairs.
Costs applicable to sales per ounce increased 26%, primarily due to lower
production.
At Martha in New Zealand, gold ounces sold decreased 17% in the first
quarter of 2006 from the first quarter of 2005, primarily due to a 19% decrease
in mill ore grade and a 9% decrease in ore milled, partially offset by higher
recovery. Costs applicable to sales per ounce increased 6%, primarily due to
decreased production and higher waste removal.
BATU HIJAU First Quarter 2006 First Quarter 2005
---------------------------------------- ------------------ ------------------
Consolidated copper sales
(million pounds) 80.7 100.1
Equity copper sales (million pounds) 42.7 52.9
Consolidated costs applicable to sales
($/pound copper) $ 0.81 $ 0.71
Consolidated gold sales (000 ounces) 72.8 75.4
Equity gold sales (000 ounces) 38.5 39.9
Consolidated costs applicable to
sales ($/ounce gold) $ 208 $ 211
At Batu Hijau in Indonesia, copper sales decreased 19% in the first quarter
of 2006 from the first quarter of 2005 due to reduced mill tons processed,
attributable to harder ore, and an increase in concentrate inventory at quarter
end. Gold sales decreased 3%, as the lower mill tons processed and higher
concentrate inventory were offset by a 26% increase in gold grade milled. The
decrease in copper production resulted in a 14% increase in costs applicable to
sales per pound of copper.
Batu Hijau also revised its mine plan to address geotechnical instability
in the operation's east pit wall. Consolidated sales for 2006 are now expected
to be approximately 472 million pounds of copper at costs applicable to sales of
$0.64 per pound and 460,000 ounces of gold at costs applicable to sales of $162
per ounce.
OTHER First Quarter 2006 First Quarter 2005
----------------------------------- ------------------ ------------------
Consolidated gold sales
(000 ounces) 127.4 97.8
Equity gold sales (000 ounces) 122.2 97.0
Consolidated costs applicable to
sales ($/ounce) $ 216 $ 261
At Golden Giant in Canada, mining operations at Golden Giant were completed
in December 2005. Mining and milling of in-circuit inventory ounces in the first
quarter of 2006 was higher than expected, resulting in gold sales of 34,100
ounces.
At Zarafshan in Uzbekistan, gold ounces sold decreased 14% in the first
quarter of 2006 from the first quarter of 2005, primarily due to the timing of
flows from the leach pads. Tons placed on the leach pads increased 18% due to
milder weather conditions. Costs applicable to sales per ounce increased 19%,
primarily as a result of the lower production.
At Kori Kollo in Bolivia, gold ounces sold increased significantly in the
first quarter of 2006 from the placement of additional material from the Kori
Kollo pit on the existing leach pad and ore from the Kori Chaca pit on the new
leach pad. Production in the first quarter of 2005 resulted from residual
leaching from an existing leach pad. Costs applicable to sales per ounce
decreased 39% in the first quarter of 2006 as a result of increased production.
At La Herradura in Mexico, gold ounces sold increased 7% in the first
quarter of 2006 from the first quarter of 2005, primarily as a result of
favorable timing of flows from the leach pads, as the grade of ore placed on the
leach pads decreased 26%. Costs applicable to sales per ounce increased by 32%,
primarily due to an increase in waste tons mined and increased labor, diesel and
other commodity costs.
At the discontinued Holloway operation in Canada, gold ounces sold
decreased 33% to 13,300 equity ounces. The Company is placing the operation on
care and maintenance at the end of April, as it considers value realization
alternatives.
MERCHANT BANKING
Newmont Capital is responsible for the Company's merchant banking
activities, including the management of all royalty, equity and asset
portfolios, as well as in-house investment banking and advisory services.
Newmont achieved record quarterly royalty and dividend income of $29 million,
62% higher than the year ago quarter, driven primarily by higher realized
commodity prices. The market value of the marketable equity securities portfolio
grew to $1.2 billion at the end of the quarter versus $940 million at the start
of the year, driven by capital appreciation. Unrealized pre-tax gains in the
portfolio were more than $725 million at quarter-end.
During the quarter, the Company acquired the remaining 15% interest in the
Akyem project and an additional 22.2% interest in the Boddington project. These
two acquisitions add 3.6 million ounces to proven and probable reserves.
Subsequent to quarter end, Newmont closed a private placement and ore purchase
agreement with Queenstake Resources Ltd.
A third season of winter drilling and baseline Environmental Impact
Assessment was completed at Newmont's 100% owned Alberta oil sands project. The
independent engineering estimate was also updated. Scotia Waterous has been
engaged as Newmont's advisor to review value realization alternatives for this
asset.
CAPITAL PROJECT DEVELOPMENT UPDATE
The Leeville underground mine in Nevada is approximately 89% complete.
Remaining work primarily relates to construction of underground facilities.
Production ramp-up is expected to achieve 2,100 tons per day by the end of 2006.
Steady-state production of 3,200 tons per day is expected to be achieved by the
end of 2007.
The Phoenix mine in Nevada is ramping up to its design production rate of
35,000 tons per day. First gold was shipped from Phoenix in March. Phoenix is
expected to produce approximately 350,000 ounces of gold and approximately 20-25
million pounds of copper per year on a steady-state basis.
Construction of the 200 megawatt power plant in Nevada was approved by the
Newmont Board of Directors in January 2006 after receipt of the final air
permit. Project engineering is over 50% complete and construction has commenced.
The estimated completion date is mid-2008.
The Ahafo project in Ghana is 95% complete. Ore is currently being
stockpiled for process start-up and commissioning in June and the project is
expected to deliver first gold production in 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 August 2005. Once the environmental impact
statement is approved, construction is planned to commence along with a detailed
review of capital costs and production timing.
The Boddington project in Australia was approved by the Newmont Board of
Directors in February of this year. Construction of the project is expected to
commence in the second half of 2006, with Newmont's share of the capital cost
expected to be approximately $900 million to $1.0 billion. Initial gold
production is expected in late 2008 or early 2009.
EXPLORATION, ADVANCED PROJECTS, RESEARCH & DEVELOPMENT
Exploration expenditures were $33 million in the first quarter of 2006,
compared with $26 million in the year ago quarter. Advanced projects, research
and development expenditures were $21 million in the first quarter of 2006 as
compared with $17 million in the first quarter of 2005.
In Ghana, ore body extensions at depth in south Ahafo continue to provide
encouraging results that justify follow up drilling, with potential underground
mining opportunities being evaluated. In Nevada, encouraging first quarter
results at Gold Quarry, Genesis, Twin Creeks and Phoenix will require further
drilling targeted at reserve and non-reserve material additions. In Peru, drill
programs are focused on oxide targets in the Yanacocha district and in the Conga
region. In Australia, positive drill results at KCGM underground and Tanami will
be followed up this year. In New Zealand, down dip offsets at Favona indicate
potential ore body extensions.
2006 GUIDANCE
The Company expects to sell approximately 7.70-7.90 million consolidated
ounces of gold (6.10-6.25 million equity ounces) at costs applicable to sales of
approximately $280-$295 per ounce. The Company also expects to sell
approximately 470-475 million consolidated pounds of copper (250-255 million
equity pounds) at costs applicable to sales of approximately $0.60-$0.65 per
pound.
Consolidated
Consolidated Costs
Equity Sales Sales Applicable to
Gold (000 ounces) (000 ounces) Sales ($/oz)
---------------------- ------------- --------------- -------------
Nevada 2,410 - 2,425 2,585 - 2,605 $380 - $385
Yanacocha, Peru 1,330 - 1,345 2,585 - 2,620 $185 - $195
Australia/New Zealand 1,485 - 1,535 1,485 - 1,535 $335 - $350
Batu Hijau, Indonesia 240 - 250 455 - 465 $155 - $165
Ahafo, Ghana 255 - 265 255 - 265 $225 - $230
Other (1),(2) 380 - 430 380 - 430 $215 - $240
TOTAL GOLD 6,100 - 6,250 7,700 - 7,900 $280 - $295
Consolidated
Consolidated Costs
Equity Sales Sales Applicable to
Copper (million lbs) (million lbs) Sales ($/lb)
---------------------- ------------- --------------- -------------
Batu Hijau 250 - 255 470 - 475 $0.60 - $0.65
Consolidated Financial Guidance
($ in million, except tax rate)
Royalty and dividend income $75-$90
Depreciation, depletion & amortization $675-$725
Exploration $150-$160
Advanced projects, research and development $50-$60
General and administrative $150-$160
Interest expense, net $95-$105
Tax rate (assuming $550/oz gold) 25%-29%
Capital expenditures(3) $1,400-$1,600
(1) Includes Holloway, Golden Giant, La Herradura, Kori Kollo and
Zarafshan.
(2) At December 31, 2005, the Company classified Holloway as an asset held
for sale. Operating results for Holloway have been reclassified to
discontinued operations for all periods presented.
(3) Includes approximately $47 million related to the acquisition of the
additional 22.2% interest in Boddington.
STATEMENTS OF CONSOLIDATED INCOME
Three Months Ended
March 31,
----------------------------
2006 2005
------------ ------------
(unaudited, in millions
except per share)
Revenues
Sales - gold, net $ 1,011 $ 836
Sales - copper, net 137 109
1,148 945
Costs and expenses
Costs applicable to sales (exclusive
of depreciation, depletion and
amortization shown separately below)
Gold 501 468
Copper 65 71
Depreciation, depletion and amortization 142 161
Exploration 33 26
Advanced projects, research and development 21 17
General and administrative 37 31
Other expense, net 14 24
813 798
Other income (expense)
Other income, net 35 67
Interest expense, net (20) (21)
15 46
Income from continuing operations
before income tax expense, minority
interest and equity income of affiliates 350 193
Income tax expense (38) (53)
Minority interest in income of subsidiaries (99) (59)
Equity income of affiliates -- 4
Income from continuing operations 213 85
Loss from discontinued operations (4) (1)
Net income $ 209 $ 84
Income per common share
Basic:
Income from continuing operations $ 0.48 $ 0.19
Loss from discontinued operations (0.01) --
Net income $ 0.47 $ 0.19
Diluted:
Income from continuing operations $ 0.47 $ 0.19
Loss from discontinued operations (0.01) --
Net income $ 0.46 $ 0.19
Basic weighted-average common shares
outstanding 448 446
Diluted weighted-average common
shares outstanding 451 448
Cash dividends declared per common share $ 0.10 $ 0.10
CONSOLIDATED BALANCE SHEETS
At March 31, At December 31,
2006 2005
------------ ---------------
(unaudited, in millions)
ASSETS
Cash and cash equivalents $ 979 $ 1,082
Marketable securities and other
short-term investments 535 817
Trade receivables 147 94
Accounts receivable 127 136
Inventories 349 320
Stockpiles and ore on leach pads 277 255
Deferred stripping costs -- 78
Deferred income tax assets 180 159
Other current assets 115 95
Current assets 2,709 3,036
Property, plant and mine development, net 6,011 5,645
Investments 1,182 955
Long-term stockpiles and ore on leach pads 687 603
Deferred stripping costs -- 100
Deferred income tax assets 660 517
Other long-term assets 198 183
Goodwill 2,902 2,879
Assets of operations held for sale 76 74
Total assets $ 14,425 $ 13,992
LIABILITIES
Current portion of long-term debt $ 202 $ 196
Accounts payable 232 232
Employee-related benefits 163 176
Derivative instruments 410 270
Other current liabilities 495 476
Current liabilities 1,502 1,350
Long-term debt 1,705 1,733
Reclamation and remediation liabilities 454 445
Deferred income tax liabilities 509 449
Employee-related benefits 282 273
Other long-term liabilities 303 414
Liabilities of operations held for sale 22 21
Total liabilities 4,777 4,685
Minority interest in subsidiaries 977 931
STOCKHOLDERS' EQUITY
Common stock 669 666
Additional paid-in capital 6,631 6,578
Accumulated other comprehensive income 533 378
Retained earnings 838 754
Total stockholders' equity 8,671 8,376
Total liabilities and stockholders'
equity $ 14,425 $ 13,922
STATEMENTS OF CONSOLIDATED CASH FLOW
Three Months Ended
March 31,
----------------------------
2006 2005
------------ ------------
(unaudited, in millions)
Operating activities:
Net income $ 209 $ 84
Adjustments to reconcile net income to
net cash provided by operating activities:
Depreciation, depletion and amortization 142 161
Loss from discontinued operations 4 1
Accretion of accumulated reclamation
obligations 7 7
Amortization of deferred stripping
costs, net -- (34)
Deferred income taxes (72) (7)
Minority interest expense 99 59
Gain on asset sales, net (2) (38)
Hedge (gain) loss, net (9) 12
Other operating adjustments and write-downs 26 6
Decrease (increase) in operating assets:
Trade and accounts receivable (44) (30)
Inventories, stockpiles and ore on leach pads (124) (13)
Other assets (9) 4
Increase (decrease) in operating liabilities:
Accounts payable and other accrued liabilities 25 (19)
Reclamation liabilities (12) (6)
Net cash provided from continuing operations 240 187
Net cash (used in) provided from discontinued
operations (5) 1
Net cash from operations 235 188
Investing activities:
Additions to property, plant and mine
development (370) (229)
Additions to property, plant and mine
development of discontinued operations -- (13)
Investments in marketable debt and equity
securities (672) (775)
Proceeds from sale of marketable debt
and equity securities 970 546
Acquisition of minority interests (187) --
Proceeds from sale of assets 2 52
Net cash used in investing activities (257) (419)
Financing activities:
Proceeds from debt, net -- 582
Repayment of debt (20) (15)
Dividends paid to common stockholders (45) (45)
Dividends paid to minority interests (45) (16)
Proceeds from stock issuance 38 4
Change in restricted cash and other (8) (1)
Net cash (used in) provided from financing
activities (80) 509
Effect of exchange rate changes on cash (1) (2)
Net change in cash and cash equivalents (103) 276
Cash and cash equivalents at beginning of period 1,082 781
Cash and cash equivalents at end of period $ 979 $ 1,057
OPERATING STATISTICS SUMMARY
Three months ended
March 31,
---------------------------
2006 2005
------------ ------------
GOLD
Consolidated ounces sold (000):
Nevada(1) 535.0 588.6
Yanacocha 769.9 772.9
Batu Hijau 72.8 75.4
Australia/New Zealand
Tanami 108.6 146.9
Kalgoorlie 94.0 116.5
Jundee 62.2 87.9
Pajingo 32.0 43.9
Martha 36.7 44.1
333.5 439.3
Other
Golden Giant 34.1 37.8
La Herradura 20.2 18.9
Kori Kollo 43.8 6.9
Zarafshan 29.3 34.2
127.4 97.8
1,838.6 1,974.0
Equity ounces sold (000):
Nevada(1) 489.3 557.5
Yanacocha 395.3 396.9
Batu Hijau 38.5 39.9
Australia/New Zealand
Tanami 108.6 146.9
Kalgoorlie 94.0 116.5
Jundee 62.2 87.9
Pajingo 32.0 43.9
Martha 36.7 44.1
333.5 439.3
Other
Golden Giant 34.1 37.8
La Herradura 20.2 18.9
Kori Kollo 38.6 6.1
Zarafshan 29.3 34.2
122.2 97.0
1,378.8 1,530.6
Discontinued operations:
Holloway 13.3 20.0
1,392.1 1,550.6
COPPER
Batu Hijau (pounds sold in millions):
Consolidated 80.7 100.1
Equity 42.7 52.9
(1) Includes 14,200 ounces sold in 2006 from Leeville and Phoenix start- up
activities which are not included in Revenue, Costs applicable to sales and
Depreciation, depletion and amortization per ounce calculations. Revenues
and costs during start-up are included in Other income, net.
OPERATING STATISTICS
NEVADA(1)
Three months ended
March 31,
-----------------------------
2006 2005
------------ ------------
Tons mined (000 dry short tons):
Open pit
Ore 8,751 7,348
Waste 39,303 40,995
Total 48,054 48,343
Underground 405 440
Tons milled/processed (000 dry short tons):
Oxide 312 1,302
Refractory 3,218 2,288
Leach 6,603 4,455
Average ore grade (oz/ton):
Oxide 0.241 0.107
Refractory 0.130 0.193
Leach 0.024 0.027
Average mill recovery rate:
Oxide 92.3% 72.7%
Refractory 79.7% 89.6%
Ounces produced (000):
Oxide 69.3 104.0
Refractory 391.1 393.4
Leach 78.2 78.3
Consolidated 538.6 575.7
Equity 492.5 544.6
Ounces sold (000):
Consolidated 535.0 588.6
Equity 489.3 557.5
Production costs (in millions):
Costs applicable to sales $ 206 $ 182
Depreciation, depletion and
amortization $ 36 $ 30
Production costs (per ounce sold):
Direct mining and production costs $ 387 $ 327
Capitalized mining and other (10) (30)
Royalties and production taxes 15 9
Reclamation and mine closure costs 3 3
Costs applicable to sales $ 395 $ 309
Depreciation, depletion and
amortization $ 68 $ 51
(1) Includes 14,200 ounces sold in 2006 from Leeville and Phoenix start- up
activities which are not included in Revenue, Costs applicable to sales and
Depreciation, depletion and amortization per ounce calculations. Revenues
and costs during start-up are included in Other income, net.
OPERATING STATISTICS (CONT'D)
YANACOCHA
Three months ended
March 31,
-----------------------------
2006 2005
------------ ------------
Tons mined (000 dry short tons):
Ore 31,082 26,201
Waste 19,293 19,538
Total 50,375 45,739
Tons processed (000 dry short tons): 31,090 26,201
Average ore grade (oz/ton): 0.035 0.028
Ounces produced (000):
Consolidated 800.4 795.9
Equity 411.0 408.7
Ounces sold (000):
Consolidated 769.9 772.9
Equity 395.3 396.9
Production costs (in millions):
Costs applicable to sales $ 124 $ 111
Depreciation, depletion and
amortization $ 43 $ 47
Production costs (per ounce sold):
Direct mining and production costs $ 163 $ 146
Capitalized mining and other (9) (8)
Royalties and production taxes 4 3
Reclamation and mine closure costs 3 2
Costs applicable to sales $ 161 $ 143
Depreciation, depletion and
amortization $ 56 $ 61
OPERATING STATISTICS (CONT'D)
BATU HIJAU
Three months ended
March 31,
-----------------------------
2006 2005
------------ ------------
Tons mined (000 dry short tons)
Ore 31,191 8,238
Waste 28,998 51,961
Total 60,189 60,199
Tons milled (000 dry short tons): 10,829 12,287
Average ore grade:
Gold (oz/ton) 0.010 0.008
Copper 0.51% 0.53%
Average mill recovery rate:
Gold 76.0% 75.2%
Copper 85.7% 78.3%
Production:
Gold ounces (000)
Consolidated 83.1 74.2
Equity 44.0 39.2
Copper pounds (millions)
Consolidated 94.0 103.1
Equity 49.7 54.5
Sales:
Gold ounces (000)
Consolidated 72.8 75.4
Equity 38.5 39.9
Copper pounds (millions)
Consolidated 80.7 100.1
Equity 42.7 52.9
Gold production costs (in millions):
Costs applicable to sales $ 15 $ 16
Depreciation, depletion and
amortization $ 4 $ 6
Production costs (per ounce sold):
Direct mining and production costs $ 203 $ 263
Capitalized mining and other (7) (62)
Royalties and production taxes 10 8
Reclamation and mine closure costs 2 2
Costs applicable to sales $ 208 $ 211
Depreciation, depletion and
amortization $ 51 $ 83
Copper production costs (in millions):
Costs applicable to sales $ 65 $ 71
Depreciation, depletion and
amortization $ 16 $ 26
Copper production costs (per pound
sold):
Direct mining and production costs $ 0.77 $ 0.83
Capitalized mining and other 0.01 (0.15)
Royalties and production taxes 0.02 0.02
Reclamation and mine closure costs 0.01 0.01
Costs applicable to sales $ 0.81 $ 0.71
Depreciation, depletion and
amortization $ 0.19 $ 0.26
OPERATING STATISTICS - AUSTRALIA AND NEW ZEALAND
PAJINGO
Three months ended
March 31,
-----------------------------
2006 2005
------------ ------------
Tons mined (000 dry short tons) 114 177
Tons milled (000 dry short tons) 115 168
Average ore grade (oz/ton) 0.272 0.258
Average mill recovery rate 96.9% 97.0%
Ounces produced (000):
Consolidated 31.8 43.9
Equity 31.8 43.9
Ounces sold (000):
Consolidated 32.0 43.9
Equity 32.0 43.9
Production costs (in millions):
Costs applicable to sales $ 14 $ 15
Depreciation, depletion and
amortization $ 5 $ 6
Production costs (per ounce sold):
Direct mining and production costs $ 424 $ 336
Capitalized mining and other (3) (5)
Royalties and production taxes 15 15
Reclamation and mine closure costs 3 2
Costs applicable to sales $ 439 $ 348
Depreciation, depletion and
amortization $ 149 $ 138
JUNDEE
Three months ended
March 31,
-----------------------------
2006 2005
------------ ------------
Tons mined (000 dry short tons):
Open pit
Ore 158 133
Waste 902 1,552
Total 1,060 1,685
Underground 273 292
Tons milled (000 dry short tons) 557 635
Average ore grade (oz/ton) 0.121 0.146
Average mill recovery rate 91.8% 93.0%
Ounces produced (000):
Consolidated 62.6 88.0
Equity 62.6 88.0
Ounces sold (000):
Consolidated 62.2 87.9
Equity 62.2 87.9
Production costs (in millions):
Costs applicable to sales $ 26 $ 30
Depreciation, depletion and
amortization $ 5 $ 6
Production costs (per ounce sold):
Direct mining and production costs $ 404 $ 319
Capitalized mining and other (1) 7
Royalties and production taxes 16 11
Reclamation and mine closure costs 6 4
Costs applicable to sales $ 425 $ 341
Depreciation, depletion and
amortization $ 79 $ 74
OPERATING STATISTICS - AUSTRALIA AND NEW ZEALAND (CONT'D)
TANAMI
Three months ended
March 31,
-----------------------------
2006 2005
------------ ------------
Tons mined (000 dry short tons) 523 531
Tons milled (000 dry short tons) 792 1,133
Average ore grade (oz/ton) 0.142 0.129
Average mill recovery rate 95.6% 95.2%
Ounces produced (000):
Consolidated 108.0 140.8
Equity 108.0 140.8
Ounces sold (000):
Consolidated 108.6 146.9
Equity 108.6 146.9
Production costs (in millions):
Costs applicable to sales $ 38 $ 43
Depreciation, depletion and
amortization $ 7 $ 9
Production costs (per ounce sold):
Direct mining and production costs $ 299 $ 265
Capitalized mining and other (1) 3
Royalties and production taxes 45 20
Reclamation and mine closure costs 3 3
Costs applicable to sales $ 346 $ 291
Depreciation, depletion and
amortization $ 63 $ 61
KALGOORLIE
Three months ended
March 31,
-----------------------------
2006 2005
------------ ------------
Tons mined (000 dry short tons):
Open pit
Ore 1,817 1,959
Waste 9,445 8,385
Total 11,262 10,344
Underground 53 53
Tons milled (000 dry short tons) 1,698 1,829
Average ore grade (oz/ton) 0.062 0.077
Average mill recovery rate 82.6% 88.5%
Ounces produced (000):
Consolidated 92.5 116.6
Equity 92.5 116.6
Ounces sold (000):
Consolidated 94.0 116.5
Equity 94.0 116.5
Production costs (in millions):
Costs applicable to sales $ 44 $ 38
Depreciation, depletion and
amortization $ 6 $ 5
Production costs (per ounce sold):
Direct mining and production costs $ 448 $ 290
Capitalized mining and other (2) 21
Royalties and production taxes 14 11
Reclamation and mine closure costs 5 3
Costs applicable to sales $ 465 $ 325
Depreciation, depletion and
amortization $ 70 $ 39
OPERATING STATISTICS - AUSTRALIA AND NEW ZEALAND (CONT'D)
MARTHA
Three months ended
March 31,
-----------------------------
2006 2005
------------ ------------
Tons mined (000 dry short tons):
Open pit
Ore 574 277
Waste 75 180
Total 649 457
Underground 19 --
Tons milled (000 dry short tons) 302 332
Average ore grade (oz/ton) 0.119 0.148
Average mill recovery rate 94.4% 92.9%
Ounces produced (000):
Consolidated 38.0 45.1
Equity 38.0 45.1
Ounces sold (000):
Consolidated 36.7 44.1
Equity 36.7 44.1
Production costs (in millions):
Costs applicable to sales $ 6 $ 7
Depreciation, depletion and
amortization $ 3 $ 5
Production costs (per ounce sold):
Direct mining and production costs $ 244 $ 216
Capitalized mining and other (74) (52)
Royalties and production taxes -- --
Reclamation and mine closure costs 6 2
Costs applicable to sales $ 176 $ 166
Depreciation, depletion and
amortization $ 86 $ 107
OPERATING STATISTICS - OTHER OPERATIONS
GOLDEN GIANT
Three months ended
March 31,
-----------------------------
2006 2005
------------ ------------
Tons mined (000 dry short tons) 13 141
Tons milled (000 dry short tons) 17 142
Average ore grade (oz/ton) 0.627 0.270
Average mill recovery rate 96.9% 95.5%
Ounces produced (000):
Consolidated 34.1 37.7
Equity 34.1 37.7
Ounces sold (000):
Consolidated 34.1 37.8
Equity 34.1 37.8
Production costs (in millions):
Costs applicable to sales $ 8 $ 13
Depreciation, depletion and
amortization $ 1 $ 3
Production costs (per ounce sold):
Direct mining and production costs $ 216 $ 335
Capitalized mining and other 1 --
Royalties and production taxes -- 2
Reclamation and mine closure costs 6 3
Costs applicable to sales $ 223 $ 340
Depreciation, depletion and
amortization $ 17 $ 73
LA HERRADURA
Three months ended
March 31,
-----------------------------
2006 2005
------------ ------------
Tons mined (000 dry short tons):
Ore 937 886
Waste 2,793 1,868
Total 3,730 2,754
Tons processed (000 dry short tons) 937 886
Average ore grade (oz/ton) 0.024 0.032
Ounces produced (000):
Consolidated 20.2 18.9
Equity 20.2 18.9
Ounces sold (000):
Consolidated 20.2 18.9
Equity 20.2 18.9
Production costs (in millions):
Costs applicable to sales $ 6 $ 4
Depreciation, depletion and
amortization $ 2 $ 1
Production costs (per ounce sold):
Direct mining and production costs $ 273 $ 208
Capitalized mining and other (1) (3)
Royalties and production taxes -- --
Reclamation and mine closure costs 2 2
Costs applicable to sales $ 274 $ 207
Depreciation, depletion and
amortization $ 98 $ 61
OPERATING STATISTICS - OTHER OPERATIONS (CONT'D)
KORI KOLLO
Three months ended
March 31,
-----------------------------
2006 2005
------------ ------------
Tons mined (000 dry short tons):
Ore 3,360 n/a
Waste 2,346 n/a
Total 5,706 n/a
Tons processed (000 dry short tons) 3,360 n/a
Average ore grade (oz/ton) 0.023 n/a
Ounces produced (000):
Consolidated 43.8 7.0
Equity 38.5 6.1
Ounces sold (000):
Consolidated 43.8 6.9
Equity 38.6 6.1
Production costs (in millions):
Costs applicable to sales $ 7 $ 2
Depreciation, depletion and
amortization $ 2 $ 0
Production costs (per ounce sold):
Direct mining and production costs $ 139 $ 234
Capitalized mining and other (7) (24)
Royalties and production taxes 30 18
Reclamation and mine closure costs 7 47
Costs applicable to sales $ 169 $ 275
Depreciation, depletion and
amortization $ 49 $ 36
ZARAFSHAN
Three months ended
March 31,
-----------------------------
2006 2005
------------ ------------
Tons mined (000 dry short tons) n/a n/a
Tons processed (000 dry short tons) 1,967 1,663
Average ore grade (oz/ton) 0.034 0.034
Ounces produced (000):
Consolidated 27.5 34.3
Equity 27.5 34.3
Ounces sold (000):
Consolidated 29.3 34.2
Equity 29.3 34.2
Production costs (in millions):
Costs applicable to sales $ 7 $ 7
Depreciation, depletion and
amortization $ 2 $ 2
Production costs (per ounce sold):
Direct mining and production costs $ 234 $ 196
Capitalized mining and other 1 1
Royalties and production taxes -- --
Reclamation and mine closure costs 2 2
Costs applicable to sales $ 237 $ 199
Depreciation, depletion and
amortization $ 78 $ 69
GOLD DERIVATIVE POSITION (AS OF MARCH 31, 2006)
CURRENT MATURITY SUMMARY (1) (3) (000 OUNCES)
PUT OPTION PRICE CAPPED
CONTRACTS CONTRACTS
------------------- -------------------
Year Ozs Price(2) Ozs Price(2)
- ------------------------- -------- -------- -------- --------
2006 61 $ 352 -- --
2007 20 $ 397 -- --
2008 -- -- 1,000 $ 384
2009 -- -- 600 $ 381
2010 -- -- -- --
2011 -- -- 250 $ 392
Total/Average 81 $ 363 1,850 $ 384
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, 2005,
filed on March 2, 2006.
(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 derivative 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 the
first of three annual installments of 161,111 ounces of gold in June 2005.
The Company's first quarter earnings conference call and web cast
presentation will be held on April 20, 2006 beginning at 4:00 p.m. Eastern Time
(2:00 p.m. Mountain Time). To participate:
Dial-In Number: 212.547.0361
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 303.837.6033 randy.engel@newmont.com
John Gaensbauer 303.837.5153 john.gaensbauer@newmont.com
Media Contacts
Deb Witmer 303.837.5308 deb.witmer@newmont.com
Heatheryn Higgins 303.837.5248 heatheryn.higgins@newmont.com
Maureen Upton 303.837.5281 maureen.upton@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 copper production
and sales; (ii) estimates of future costs applicable to sales; (iii) estimates
of future capital expenditures, royalty and dividend income, tax rates and
expenses; (iv) estimates regarding timing of future development, construction,
production or closure activities; (v) statements regarding future exploration
results and the replacement of reserves; and (vi) statements regarding cost
structure and competitive position. Where the Company expresses or implies an
expectation or belief as to future events or results, such expectation or belief
is expressed in good faith and believed to have a reasonable basis. However,
forward-looking statements are subject to risks, uncertainties and other
factors, which could cause actual results to differ materially from future
results expressed, projected or implied by such forward-looking statements. Such
risks include, but are not limited to, gold and other metals price volatility,
currency fluctuations, increased production costs and variances in ore grade or
recovery rates from those assumed in mining plans, political and operational
risks in the countries in which we operate, and governmental regulation and
judicial outcomes. For a more detailed discussion of such risks and other
factors, see the Company's 2005 Annual Report on Form 10-K, which is on file
with the Securities and Exchange Commission, as well as the Company's other SEC
filings. The Company does not undertake any obligation to release publicly
revisions to any "forward-looking statement," to reflect events or circumstances
after the date of this news release, or to reflect the occurrence of
unanticipated events, except as may be required under applicable securities
laws.
SOURCE Newmont Mining Corporation
-0- 04/20/2006
/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, Deb Witmer, +1-303-837-5308,
deb.witmer@newmont.com, or Heatheryn Higgins, +1-303-837-5248,
heatheryn.higgins@newmont.com, or Maureen Upton, +1-303-837-5281,
maureen.upton@newmont.com, all of Newmont Mining Corporation/
/Web site: http://www.newmont.com /