Exhibit 99.1
SECOND QUARTER INCOME FROM CONTINUING OPERATIONS
INCREASES 83% TO $161 MILLION ($0.36 Per Share)
DENVER, July 27 /PRNewswire-FirstCall/ -- Newmont Mining Corporation (NYSE:
NEM) today announced second quarter income from continuing operations of $161
million ($0.36 per share) compared with $88 million ($0.20 per share) for the
second quarter of 2005. For the first half of 2006, income from continuing
operations was up 116% to $374 million ($0.83 per share) compared with $173
million ($0.39 per share) for the first half of 2005. Second quarter highlights
included:
* Consolidated gold sales of 1.9 million ounces (1.4 million equity
ounces) at costs applicable to sales of $298 per ounce and an average
realized price of $605 per ounce;
* Net cash provided from continuing operations of $344 million in the
second quarter after a $160 million increase in working capital and
the non-cash, physical delivery of $48 million in gold to repay debt
in the second quarter; and
* Cash and cash equivalents, marketable securities and short-term
investments of $1.5 billion at June 30.
Wayne W. Murdy, Chairman and Chief Executive Officer, said, "During the
second quarter and for the first half of the year, we generated substantial
earnings growth and gold price leverage for our shareholders. Net income from
continuing operations grew by over 80% in the second quarter and more than
doubled in the first half of 2006 on gold price increases of approximately 40%.
We also achieved project milestones in Ghana and Nevada with initial processing
at our Ahafo and Phoenix operations. Additionally, we are pleased to announce
the third quarter sale of our Black Gold oil sands property in Alberta, Canada
for approximately $280 million."
FINANCIAL (in millions,
except per share) Q2 2006 Q2 2005 YTD 2006 YTD 2005
- ----------------------------------- -------- -------- -------- --------
Revenues $ 1,310 $ 997 $ 2,458 $ 1,942
Net cash provided from
continuing operations $ 344 $ 135 $ 584 $ 322
Income from continuing
operations $ 161 $ 88 $ 374 $ 173
Income from continuing
operations per common share $ 0.36 $ 0.20 $ 0.83 $ 0.39
OPERATING
Consolidated gold sales
(000 ounces)(1) 1,870 1,990 3,709 3,964
Equity gold sales
(000 ounces)(1, 2) 1,384 1,537 2,776 3,088
Average realized gold
price ($/ounce) $ 605 $ 421 $ 580 $ 423
Costs applicable to sales
($/ounce) $ 298 $ 242 $ 286 $ 239
(1) Includes 23,000 and 37,200 ounces for the three and six month periods ended
June 30, 2006, respectively, 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.
(2) Includes sales from the Holloway discontinued operation.
FINANCIAL AND OPERATING REVIEW
Second quarter 2006 income from continuing operations was $161 million
($0.36 per share), compared with $88 million ($0.20 per share) for the second
quarter of 2005. Income from continuing operations for the second quarter was
impacted by the following:
Q2 2006 Q2 2005
-------------------- --------------------
DESCRIPTION $ Million EPS $ Million EPS
- ----------------------------------- --------- -------- --------- --------
Pre-paid forward deliveries $ 23 $ 0.05 $ 4 $ 0.01
Deferred stripping accounting $ 7 $ 0.01 -- --
Stock option accounting $ 4 $ 0.01 -- --
Australian tax consolidation -- -- $ (7) $ (0.01)
Buyat Bay litigation expenses $ 5 $ 0.01 $ 8 $ 0.02
These items had the net effect of decreasing income from continuing
operations for the second quarter of 2006 by $39 million ($0.08 per share) and
decreasing income from continuing operations for the second quarter of 2005 by
$5 million ($0.02 per share).
The Company generated net cash from continuing operations of $344 million
in the second quarter of 2006, after a $160 million increase in working capital
and the non-cash, physical delivery of $48 million in gold to repay debt.
OPERATING HIGHLIGHTS
Nevada Q2 2006 Q2 2005 YTD 2006 YTD 2005
- ----------------------------------- -------- -------- -------- --------
Consolidated gold sales
(000 ounces)(1) 543 607 1,078 1,195
Equity gold sales
(000 ounces)(1) 495 569 985 1,127
Consolidated costs applicable
to sales ($/ounce) $ 450 $ 315 $ 423 $ 312
(1) Includes 23,000 and 37,200 ounces for the three and six month periods ended
June 30, 2006, respectively, from incidental sales during start-up at
Leeville and Phoenix.
In Nevada, gold ounces sold decreased 10% in the second quarter of 2006
from 2005, primarily as a result of a 16% decrease in mill ore grade. Costs
applicable to sales per ounce increased 43%, primarily due to lower production
and higher labor, diesel, power, cyanide and underground contract service costs.
The increase in costs applicable to sales was also impacted by the change in
accounting for open pit waste removal costs. In the second quarter of 2005, $18
million of mining costs were deferred and reduced costs applicable to sales by
$30 per ounce. Gold production at Lone Tree continues to decline as the mine
prepares for planned closure in the second half of the year.
YANACOCHA Q2 2006 Q2 2005 YTD 2006 YTD 2005
- ----------------------------------- -------- -------- -------- --------
Consolidated gold sales
(000 ounces) 785 722 1,555 1,495
Equity gold sales (000 ounces) 403 371 799 768
Consolidated costs applicable
to sales ($/ounce) $ 185 $ 156 $ 173 $ 149
At Yanacocha, second quarter gold ounces sold increased 9% as a 30%
increase in ore grade and timing of flows from the leach pads more than offset a
16% decrease in tons of ore placed. The decrease in ore placed resulted from
increased waste removal at the La Quinua and Yanacocha pits. Ore grade increased
at La Quinua as mining accessed higher grade material at the bottom of the pit.
Costs applicable to sales per ounce increased 19% due to increased consumption
and prices of diesel, cyanide, lime and other commodities and higher labor and
royalty costs due to increased gold prices.
AUSTRALIA/NEW ZEALAND Q2 2006 Q2 2005 YTD 2006 YTD 2005
- ----------------------------------- -------- -------- -------- --------
Consolidated gold sales
(000 ounces) 315 387 649 827
Equity gold sales (000 ounces) 315 387 649 827
Consolidated costs applicable
to sales ($/ounce) $ 388 $ 332 $ 386 $ 316
In Australia and New Zealand, operations sold 19% fewer ounces of gold in
the second quarter of 2006 compared to 2005, primarily due to processing lower
grades at Kalgoorlie, Pajingo and Martha, combined with lower throughput at
Tanami, Kalgoorlie and Pajingo. Costs applicable to sales per ounce for the
second quarter increased in 2006 from 2005 by 17%, primarily due to the decrease
in production, partially offset by a devaluation of the Australian and New
Zealand dollars compared to the U.S. dollar. The increase in costs applicable to
sales was also impacted by the change in accounting for open pit waste removal
costs. In the second quarter of 2005, $1 million of mining costs were amortized
and increased costs applicable to sales by $2 per ounce.
At Tanami in Australia, gold ounces sold decreased 29% in the second
quarter of 2006 from 2005, primarily due to a 32% decline in mill throughput
resulting from the completion of processing Groundrush stockpiles and lower ore
grade from The Granites. Costs applicable to sales per ounce increased 16%,
primarily due to lower gold production.
At Kalgoorlie in Australia, gold ounces sold decreased 12% in the second
quarter of 2006 from 2005, primarily due to a 22% decrease in tons milled due to
more abrasive and harder ore as well as an additional planned shut down for
shovel repairs. Costs applicable to sales per ounce increased 41%, primarily due
to lower gold production and increased diesel and maintenance costs.
At Jundee in Australia, gold ounces sold in the second quarter of 2006
remained constant with the second quarter of 2005. Costs applicable to sales per
ounce decreased 14%, primarily attributable to fewer tons mined and less
underground development.
At Pajingo in Australia, gold ounces sold decreased 18% in the second
quarter of 2006 from 2005, due to a 15% decrease in tons milled and a 12%
decrease in mill ore grade. The decrease in tons milled was attributable to
ground control issues in Vera South Deeps and access issues at Jandam. Costs
applicable to sales per ounce increased 30% primarily due to lower production.
At Martha in New Zealand, gold ounces sold decreased 34% in the second
quarter of 2006 from 2005, primarily due to a 30% decrease in mill ore grade.
Costs applicable to sales per ounce remained constant as the lower production
was offset by reduced open pit mining activities. In the second quarter of 2005,
$1 million of deferred stripping costs was amortized, increasing costs
applicable to sales by $12 per ounce.
BATU HIJAU Q2 2006 Q2 2005 YTD 2006 YTD 2005
- ----------------------------------- -------- -------- -------- --------
Consolidated copper sales
(million pounds) 117 154 198 254
Equity copper sales
(million pounds) 62 81 105 134
Consolidated costs applicable
to sales ($/pound copper) $ 0.71 $ 0.45 $ 0.75 $ 0.55
Average realized copper
price, net of treatment
& refining $ 1.72 $ 1.06 $ 1.71 $ 1.07
Consolidated gold sales
(000 ounces) 134 175 207 250
Equity gold sales (000 ounces) 71 93 110 132
Consolidated costs applicable
to sales ($/ounce gold) $ 196 $ 149 $ 200 $ 167
At Batu Hijau in Indonesia, copper and gold sales both decreased by 24% in
the second quarter of 2006 from 2005, primarily due to a 30% and 33% decrease in
copper and gold ore grades, respectively. Total tons mined were 24% higher in
the second quarter of 2006 from 2005 due to the addition of 26 haul trucks and
one additional shovel. The ore grade declined due to mining at the top of Phases
4 and 5 in 2006 compared to mining in the bottom of Phase 3 in 2005. Mine phase
sequencing was adjusted as a result of mine plan revisions completed earlier in
the year. Costs applicable to sales increased 58% per pound of copper and 32%
per ounce of gold due to the decrease in copper and gold production, the
expansion of the mining fleet and increased diesel, tire, labor and process
maintenance costs. The increase in costs applicable to sales were also impacted
by the change in accounting for open pit waste removal costs. In the second
quarter of 2005, $6 million of stripping costs was amortized, increasing costs
applicable to sales by $0.04 per pound of copper and $2 per ounce of gold.
OTHER OPERATIONS Q2 2006 Q2 2005 YTD 2006 YTD 2005
- ----------------------------------- -------- -------- -------- --------
Consolidated gold sales
(000 ounces) 92 99 220 197
Equity gold sales
(000 ounces) 89 98 211 195
Consolidated costs
applicable to sales
($/ounce) $ 247 $ 240 $ 229 $ 250
Mining operations at Golden Giant in Canada were essentially completed in
December 2005. Remnant mining and production in the second quarter of 2006 at
14,300 ounces was higher than expected due to additional in-circuit inventory
ounces. Residual production, at significantly reduced levels, is expected
through the third quarter of 2006.
At Zarafshan in Uzbekistan, gold ounces sold decreased 8% in the second
quarter of 2006 from 2005, primarily due to timing of flows from the leach pads
as ore grade increased 23%. Costs applicable to sales per ounce remained
constant.
In June 2006, economic courts in Uzbekistan ruled against the Joint Venture
in two claims to collect approximately $48 million in taxes. The Joint Venture
is appealing the tax rulings. In addition, the government of Uzbekistan and
certain of its instrumentalities have initiated a series of actions that could
adversely affect certain project agreements and operations. Although the Company
believes these actions are without merit, the ultimate outcome of these matters
cannot be determined at this time.
At June 30, 2006, the book value of the Company's ownership interest was
approximately $94 million. The Company is exploring all options to recover the
value of its investment in the Joint Venture, including the possible sale of the
asset or international arbitration.
At Kori Kollo in Bolivia, gold ounces sold increased significantly in the
second quarter and first half of 2006 as compared to 2005 resulting from the
placement of additional material from the Kori Kollo pit on the existing leach
pad and ore from the Kori Chaca pit on a new leach pad beginning in the third
quarter of 2005. Costs applicable to sales per ounce increased 12%, primarily as
a result of higher royalties and production taxes.
At La Herradura in Mexico, gold ounces sold decreased 7% in the second
quarter of 2006 from 2005, primarily as a result of a 15% decrease in ore grade.
Costs applicable to sales per ounce increased by 59% primarily due to decreased
production and increased labor, diesel and other commodity costs. Costs
applicable to sales were also impacted by the change in accounting for open pit
waste removal costs. In the second quarter of 2005, $1 million of mining costs
were deferred and reduced costs applicable to sales by $27 per ounce.
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. Second
quarter and year to date royalty and dividend income was $29 million and $58
million, respectively, 38% higher than the year ago quarter and 49% higher than
the first half of 2005, driven primarily by higher commodity prices. The value
of the marketable equity securities portfolio grew to approximately $1.3 billion
at the end of the quarter, versus $940 million at the start of the year, driven
primarily by capital appreciation. Unrealized pre-tax gains in the portfolio
exceeded $800 million at quarter-end.
Newmont Capital has also been advancing value maximization strategies for
the Company's oil sands, iron ore, coal, gas and gold refining assets. After
completing a three season resource delineation program and pre-feasibility
study, Newmont received a cash offer of approximately $280 million for the
Alberta Oil Sands project from the Korean National Oil Corporation late in the
quarter. Subsequent to quarter end, a binding agreement was signed and the
transaction is expected to close in the third quarter for an approximate $270
million pre-tax gain.
During the second quarter, the Company also closed a private placement and
ore sale agreement with Queenstake Resources Ltd., and subsequent to quarter
end, signed a binding agreement to sell the Martabe gold project in Indonesia to
Agincourt Resources Limited for approximately $80 million. The Martabe sale is
expected to close in the third quarter.
CAPITAL PROJECT DEVELOPMENT UPDATE
The Leeville underground mine in Nevada continues its production ramp-up
and 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 by the end of 2007, with annual
production of between 400,000 and 450,000 ounces of gold per year.
The Phoenix mine in Nevada is ramping up to its design production rate of
35,000 tons per day, with commercial production expected in the third quarter
and anticipated steady-state annual production of between 300,000 and 350,000
ounces of gold.
Also in Nevada, construction of the 200 megawatt coal-fired power plant is
progressing, with engineering 60% complete and construction approximately 7%
complete. The estimated completion date is mid-2008.
At the Ahafo mine in Ghana, ore processing began in June, with the initial
gold pour occurring on July 18, 2006. Process expansion and underground
development evaluations are also underway at Ahafo. Commercial production is
expected to begin in the third quarter.
The Akyem project in Ghana was approved by the Newmont Board of Directors
in July 2005. Construction is planned to commence, along with a detailed review
of capital costs and production timing, when the environmental impact statement
is approved.
Construction of the Boddington project in Australia has commenced, with
Newmont's share of capital costs expected to be approximately $900 million to
$1.0 billion. Initial production is expected in late 2008 or early 2009.
EXPLORATION, ADVANCED PROJECTS, RESEARCH & DEVELOPMENT
Exploration expenditures were $46 million in the second quarter of 2006,
compared with $38 million in the year ago quarter. Advanced projects, research
and development expenditures were $28 million in the second quarter of 2006 as
compared with $12 million in the second quarter of 2005. Exploration and
development programs in Ghana and Australia, in particular, have provided
favorable results so far this year.
In the northern part of the Ahafo district in Ghana, the Company has
identified 13 new targets with similar structural and geophysical
characteristics to other deposits in the district. Also at Ahafo, the Company is
working to advance the Subika underground target to non-reserve mineralization
(NRM) status in 2006 and is evaluating potential synergies between Subika and
the nearby Apensu deposit. The Company is also targeting reserve and NRM
additions at Ahafo's Susuan and Awonsu open pit targets.
In Australia, at the Callie underground operations, the Company is
targeting reserve and NRM additions in the Wilson and Federation shoots at
levels below 1,000 meters. Recent surface diamond drill holes have intersected
gold mineralization in the Wilson Shoot as deep as 1,500 meters. Near-mine
exploration and development programs at Boddington, Martha, Kalgoorlie and
Jundee have also generated favorable results.
In Nevada, the Company has had encouraging exploration results at Gold
Quarry, Carlin, Genesis, Chukar and Twin Creeks.
FINANCING ACTIVITIES
In May 2006, Yanacocha entered into a seven year, unsecured $100 million
bank financing with a syndicate of Peruvian commercial banks. Today, Yanacocha
also issued $100 million of public bonds in the Peruvian market. These
financings will broaden the Company's stakeholder base in Peru and, through the
bond offer, also allow Peruvian pension funds to benefit from the Company's
ongoing success at Yanacocha.
In June, Newmont Ghana Gold Limited, entered into a $125 million project
financing for the Ahafo project in Ghana with the International Finance
Corporation (IFC), which the Company anticipates drawing down in the second half
of 2006.
2006 GUIDANCE
The Company expects to sell approximately 5.9-6.2 million equity ounces of
gold at costs applicable to sales of approximately $290-$310 per ounce. The
Company also expects to sell approximately 225-235 million equity pounds of
copper at costs applicable to sales of approximately $0.65-$0.70 per pound. Gold
and copper sales are expected to be weighted to the fourth quarter of the year,
with actual sales dependant on the ramp-up at Ahafo, Phoenix and Leeville.
The Company is currently reviewing its mine plan and project development
schedules as part of its annual budgeting cycle and will provide updated 2007
sales and cost guidance by early next year for all operating regions.
Equity Sales Costs Applicable
(000 ounces) to Sales ($/oz)
-------------- ----------------
Gold
Nevada, USA 2,360 - 2,435 $380 - $395
Yanacocha, Peru 1,330 - 1,366 $190 - $205
Australia/New Zealand 1,390 - 1,445 $375 - $395
Batu Hijau, Indonesia 210 - 240 $200 - $225
Ahafo, Ghana 240 - 275 $250 - $275
Other(1) 370 - 440 $215 - $255
TOTAL 5,900 - 6,200 $290 - $310
Equity Sales Costs Applicable
(million lbs) to Sales ($/lb)
-------------- ----------------
Copper
Batu Hijau, Indonesia 225 - 235 $0.65 - $0.70
Consolidated Financial Guidance
($ in million, except tax rate)
Royalty and dividend income $90 - $100
Depreciation, depletion & amortization $630 - $670
Exploration $160 - $165
Advanced projects, research and development $65 - $75
General and administrative $150 - $160
Interest expense, net $95 - $105
Tax rate (assuming $600/oz gold) 24% - 28%
Capital expenditures $1,400 - $1,600
(1) Includes Holloway, Golden Giant, La Herradura, Kori Kollo and Zarafshan.
Zarafshan is assumed to continue in operation for the entire year, despite
the previously disclosed tax and other issues currently being experienced.
Depending on the outcome, Zarafshan may be forced to discontinue operations
in the second half of 2006.
STATEMENTS OF CONSOLIDATED INCOME
Three Months Ended Six Months Ended
June 30, June 30,
------------------- --------------------
2006 2005 2006 2005
-------- -------- -------- --------
(unaudited, in millions except per share)
Revenues
Sales - gold, net $ 1,108 $ 833 $ 2,119 $ 1,669
Sales - copper, net 202 164 339 273
1,310 997 2,458 1,942
Costs and expenses
Costs applicable to sales
(exclusive of depreciation,
depletion and amortization
shown separately below)
Gold 551 481 1,052 949
Copper 84 69 149 140
Depreciation, depletion and
amortization 153 155 295 316
Exploration 46 38 79 64
Advanced projects, research
and development 28 12 49 29
General and administrative 37 32 74 63
Other expense, net 13 16 27 40
912 803 1,725 1,601
Other income (expense)
Other income, net 34 44 69 111
Interest expense, net (23) (31) (43) (52)
11 13 26 59
Income from continuing operations
before income tax expense,
minority interest and equity
income of affiliates 409 207 759 400
Income tax expense (120) (44) (158) (97)
Minority interest in income of
consolidated subsidiaries (128) (74) (227) (133)
Equity income (loss) of
affiliates -- (1) -- 3
Income from continuing operations 161 88 374 173
Loss from discontinued operations -- (38) (4) (39)
Net income $ 161 $ 50 $ 370 $ 134
Income per common share
Basic:
Income from continuing
operations $ 0.36 $ 0.20 $ 0.83 $ 0.39
Loss from discontinued
operations -- (0.09) (0.01) (0.09)
Net income $ 0.36 $ 0.11 $ 0.82 $ 0.30
Diluted:
Income from continuing
operations $ 0.36 $ 0.20 $ 0.83 $ 0.39
Loss from discontinued
operations -- (0.09) (0.01) (0.09)
Net income $ 0.36 $ 0.11 $ 0.82 $ 0.30
Basic weighted-average common
shares outstanding 449 446 449 446
Diluted weighted-average common
shares outstanding 452 449 451 449
Cash dividends declared per
common share $ 0.10 $ 0.10 $ 0.20 $ 0.20
CONSOLIDATED BALANCE SHEETS
At June 30, At December 31,
2006 2005
--------------- ---------------
(unaudited, in millions)
ASSETS
Cash and cash equivalents $ 1,135 $ 1,082
Marketable securities and other
short-term investments 354 817
Trade receivables 196 94
Accounts receivable 157 136
Inventories 349 320
Stockpiles and ore on leach pads 342 255
Deferred stripping costs -- 78
Deferred income tax assets 192 159
Other current assets 93 95
Current assets 2,818 3,036
Property, plant and mine
development, net 6,185 5,645
Investments 1,308 955
Long-term stockpiles and ore
on leach pads 733 603
Deferred stripping costs -- 100
Deferred income tax assets 610 517
Other long-term assets 197 183
Goodwill 2,902 2,879
Assets of operations held for sale 77 74
Total assets $ 14,830 $ 13,992
LIABILITIES
Current portion of long-term debt $ 205 $ 196
Accounts payable 231 232
Employee-related benefits 151 176
Derivative instruments 583 270
Other current liabilities 479 476
Current liabilities 1,649 1,350
Long-term debt 1,709 1,733
Reclamation and remediation
liabilities 456 445
Deferred income tax liabilities 461 449
Employee-related benefits 292 273
Other long-term liabilities 302 414
Liabilities of operations
held for sale 16 21
Total liabilities 4,885 4,685
Minority interest in subsidiaries 1,048 931
STOCKHOLDERS' EQUITY
Common stock 673 666
Additional paid-in capital 6,669 6,578
Accumulated other comprehensive income 602 378
Retained earnings 953 754
Total stockholders' equity 8,897 8,376
Total liabilities and
stockholders' equity $ 14,830 $ 13,992
STATEMENTS OF CONSOLIDATED CASH FLOW (THREE MONTH)
Three Months Ended June 30,
----------------------------
2006 2005
------------ ------------
(unaudited, in millions)
Operating activities:
Net income $ 161 $ 50
Adjustments to reconcile net income to
net cash from operations:
Depreciation, depletion and amortization 153 155
Revenue from prepaid forward sales
obligation (48) (48)
Loss from discontinued operations -- 38
Accretion of accumulated reclamation
obligations 7 7
Amortization of deferred stripping
costs, net -- (12)
Deferred income taxes (5) (20)
Minority interest expense 128 74
Gain on asset sales, net (12) (3)
Hedge (gain) loss, net 83 (4)
Other operating adjustments and write-downs 37 5
Decrease (increase) in operating assets:
Trade and accounts receivable (56) (14)
Inventories, stockpiles and ore on leach
pads (100) (59)
Other assets (2) (1)
Increase (decrease) in operating liabilities:
Accounts payable and other accrued
liabilities 11 (25)
Reclamation liabilities (13) (8)
Net cash provided from continuing operations 344 135
Net cash (used in) provided from discontinued
operations (8) 1
Net cash from operations 336 136
Investing activities:
Additions to property, plant and mine
development (338) (303)
Additions to property, plant and mine
development of discontinued operations -- (11)
Investments in marketable debt and equity
securities (408) (1,267)
Proceeds from sale of marketable debt and
equity securities 566 1,278
Acquisition of minority interests -- --
Proceeds from sale of assets 6 8
Other (2) --
Net cash used in investing activities (176) (295)
Financing activities:
Proceeds from debt, net 99 2
Repayment of debt (43) (55)
Dividends paid to common stockholders (45) (44)
Dividends paid to minority interests (44) (55)
Proceeds from stock issuance 19 2
Change in restricted cash and other 6 (6)
Net cash (used in) provided from financing
activities (8) (156)
Effect of exchange rate changes on cash 4 (1)
Net change in cash and cash equivalents 156 (316)
Cash and cash equivalents at beginning of
period 979 1,057
Cash and cash equivalents at end of period $ 1,135 $ 741
STATEMENTS OF CONSOLIDATED CASH FLOW (SIX MONTH)
Six Months Ended June 30,
----------------------------
2006 2005
------------ ------------
(unaudited, in millions)
Operating activities:
Net income $ 370 $ 134
Adjustments to reconcile net income to net
cash from operations:
Depreciation, depletion and amortization 295 316
Revenue from prepaid forward sales
obligation (48) (48)
Loss from discontinued operations 4 39
Accretion of accumulated reclamation
obligations 14 14
Amortization of deferred stripping
costs, net -- (46)
Deferred income taxes (77) (27)
Minority interest expense 227 133
Gain on asset sales, net (14) (41)
Hedge loss, net 74 8
Other operating adjustments and write-downs 63 11
Decrease (increase) in operating assets:
Trade and accounts receivable (100) (44)
Inventories, stockpiles and ore on leach
pads (224) (72)
Other assets (11) 3
Increase (decrease) in operating liabilities:
Accounts payable and other accrued
liabilities 36 (44)
Reclamation liabilities (25) (14)
Net cash provided from continuing operations 584 322
Net cash (used in) provided from discontinued
operations (13) 2
Net cash from operations 571 324
Investing activities:
Additions to property, plant and mine
development (708) (532)
Additions to property, plant and mine
development of discontinued operations -- (24)
Investments in marketable debt and equity
securities (1,080) (2,042)
Proceeds from sale of marketable debt and
equity securities 1,536 1,824
Acquisition of minority interests (187) --
Proceeds from sale of assets 8 60
Other (2) --
Net cash used in investing activities (433) (714)
Financing activities:
Proceeds from debt, net 99 584
Repayment of debt (63) (70)
Dividends paid to common stockholders (90) (89)
Dividends paid to minority interests (89) (71)
Proceeds from stock issuance 57 6
Change in restricted cash and other (2) (7)
Net cash (used in) provided from financing
activities (88) 353
Effect of exchange rate changes on cash 3 (3)
Net change in cash and cash equivalents 53 (40)
Cash and cash equivalents at beginning
of period 1,082 781
Cash and cash equivalents at end of period $ 1,135 $ 741
OPERATING STATISTICS - SUMMARY
Three months ended Six months ended
June 30, June 30,
------------------- --------------------
2006 2005 2006 2005
-------- -------- -------- --------
GOLD
Consolidated ounces
sold (000):
Nevada (1) 543.4 606.5 1,078.4 1,195.1
Yanacocha 785.2 722.3 1,555.1 1,495.2
Batu Hijau 134.3 174.9 207.1 250.3
Australia/New Zealand
Tanami 90.0 126.7 198.6 273.6
Kalgoorlie 81.7 93.1 175.7 209.6
Jundee 77.4 78.2 139.6 166.1
Pajingo 35.3 42.8 67.4 86.7
Martha 30.7 46.5 67.5 90.6
315.1 387.3 648.8 826.6
Other
Golden Giant 14.3 39.9 48.4 77.7
La Herradura 20.0 21.6 40.2 40.5
Kori Kollo 30.8 7.8 74.6 14.8
Zarafshan 27.3 29.8 56.6 64.1
92.4 99.1 219.8 197.1
1,870.4 1,990.1 3,709.2 3,964.3
Equity ounces sold (000):
Nevada (1) 495.3 569.4 984.7 1,126.9
Yanacocha 403.2 370.9 798.5 767.8
Batu Hijau 71.0 92.5 109.5 132.4
Australia/New Zealand
Tanami 90.0 126.7 198.6 273.6
Kalgoorlie 81.7 93.1 175.7 209.6
Jundee 77.4 78.2 139.6 166.1
Pajingo 35.3 42.8 67.4 86.7
Martha 30.7 46.5 67.5 90.6
315.1 387.3 648.8 826.6
Other
Golden Giant 14.3 39.9 48.4 77.7
La Herradura 20.0 21.6 40.2 40.5
Kori Kollo 27.1 6.9 65.7 13.0
Zarafshan 27.3 29.8 56.6 64.1
88.7 98.2 210.9 195.3
1,373.3 1,518.3 2,752.4 3,049.0
Discontinued operations:
Holloway 10.6 18.7 23.9 38.8
1,383.9 1,537.0 2,776.3 3,087.8
COPPER
Batu Hijau (pounds sold
in millions):
Consolidated 117.0 154.0 197.7 254.1
Equity 61.9 81.4 104.5 134.3
(1) Includes 23,500 and 37,300 ounces sold (consolidated and equity) for the
three and six month periods ended June 30, 2006, respectively, 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 Six months ended
June 30, June 30,
------------------- --------------------
2006 2005 2006 2005
-------- -------- -------- --------
Tons mined (000 dry short tons):
Open pit
Ore 7,759 7,661 16,510 15,010
Waste 37,266 38,708 76,569 79,704
Total 45,025 46,369 93,079 94,714
Underground 284 416 652 856
Tons milled/processed
(000 dry short tons):
Oxide 309 1,373 621 2,675
Refractory 3,288 2,318 6,505 4,606
Leach 5,353 5,390 11,956 9,846
Average ore grade (oz/ton):
Oxide 0.202 0.106 0.221 0.106
Refractory 0.123 0.185 0.126 0.189
Leach 0.025 0.024 0.024 0.025
Average mill recovery rate:
Oxide 93.1% 76.4% 92.7% 74.6%
Refractory 82.3% 90.9% 81.0% 90.3%
Ounces produced (000):
Oxide 62.8 103.4 132.1 207.4
Refractory 394.3 376.3 786.8 769.8
Leach 82.5 112.9 159.3 191.2
Consolidated 539.6 592.6 1,078.2 1,168.4
Equity 490.4 555.5 982.8 1,100.2
Ounces sold (000):
Consolidated 543.4 606.5 1,078.4 1,195.1
Equity 495.3 569.4 984.7 1,126.9
Production costs (in millions):
Costs applicable to sales $ 234 $ 191 $ 440 $ 373
Depreciation, depletion and
amortization $ 35 $ 30 $ 71 $ 60
Production costs
(per ounce sold):
Direct mining and
production costs $ 448 $ 340 $ 418 $ 334
Capitalized mining and other (10) (37) (10) (34)
Royalties and production
taxes 9 9 12 9
Reclamation and mine closure
costs 3 3 3 3
Costs applicable to sales $ 450 $ 315 $ 423 $ 312
Depreciation, depletion
and amortization $ 68 $ 50 $ 68 $ 50
(1) Includes 23,000 and 37,200 ounces sold (consolidated and equity) for the
three and six month periods ended June 30, 2006, respectively, 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 - YANACOCHA
Three months ended Six months ended
June 30, June 30,
------------------- --------------------
2006 2005 2006 2005
-------- -------- -------- --------
Tons mined (000 dry short tons):
Ore 29,817 35,558 60,899 61,759
Waste 25,543 21,687 44,835 41,225
Total 55,360 57,245 105,734 102,984
Tons processed (000 dry
short tons): 29,817 35,558 60,907 61,759
Average ore grade (oz/ton): 0.032 0.025 0.034 0.026
Ounces produced (000):
Consolidated 750.6 709.2 1,551.0 1,505.1
Equity 385.4 364.2 796.5 772.9
Ounces sold (000):
Consolidated 785.2 722.3 1,555.1 1,495.2
Equity 403.2 370.9 798.5 767.8
Production costs (in millions):
Costs applicable to sales $ 145 $ 112 $ 269 $ 223
Depreciation, depletion and
amortization $ 49 $ 51 $ 92 $ 98
Production costs
(per ounce sold):
Direct mining and production
costs $ 192 $ 159 $ 177 $ 152
Capitalized mining and other (14) (8) (11) (8)
Royalties and production taxes 4 3 4 3
Reclamation and mine closure
costs 3 2 3 2
Costs applicable to sales $ 185 $ 156 $ 173 $ 149
Depreciation, depletion
and amortization $ 61 $ 71 $ 59 $ 66
OPERATING STATISTICS - BATU HIJAU
Three months ended Six months ended
June 30, June 30,
------------------- --------------------
2006 2005 2006 2005
-------- -------- -------- --------
Tons mined (000 dry
short tons)
Ore 37,362 21,942 68,552 30,180
Waste 35,489 36,843 64,487 88,804
Total 72,851 58,785 133,039 118,984
Tons milled (000 dry
short tons): 12,080 12,301 22,909 24,589
Average ore grade:
Gold (oz/ton) 0.013 0.019 0.011 0.013
Copper 0.52% 0.75% 0.51% 0.64%
Average mill recovery rate:
Gold 82.9% 80.2% 80.0% 78.7%
Copper 86.7% 89.0% 86.2% 84.6%
Production:
Gold ounces (000)
Consolidated 126.3 183.8 209.4 258.1
Equity 66.8 97.2 110.7 136.5
Copper pounds (millions)
Consolidated 109.4 162.9 203.4 266.0
Equity 57.8 86.1 107.5 140.7
Sales:
Gold ounces (000)
Consolidated 134.3 174.9 207.1 250.3
Equity 71.0 92.5 109.5 132.4
Copper pounds (millions)
Consolidated 117.0 154.0 197.7 254.1
Equity 61.9 81.4 104.5 134.3
Gold production costs
(in millions):
Costs applicable to sales $ 27 $ 26 $ 42 $ 42
Depreciation, depletion
and amortization $ 6 $ 9 $ 10 $ 14
Production costs (per ounce sold):
Direct mining and production
costs $ 189 $ 141 $ 194 $ 178
Capitalized mining and other (8) (4) (8) (22)
Royalties and production
taxes 13 10 12 9
Reclamation and mine closure
costs 2 2 2 2
Costs applicable to sales $ 196 $ 149 $ 200 $ 167
Depreciation, depletion
and amortization $ 46 $ 50 $ 48 $ 60
Copper production costs
(in millions):
Costs applicable to sales $ 84 $ 69 $ 149 $ 140
Depreciation, depletion
and amortization $ 18 $ 20 $ 34 $ 46
Copper production costs
(per pound sold):
Direct mining and production
costs $ 0.66 $ 0.36 $ 0.71 $ 0.55
Capitalized mining and other 0.02 0.07 0.01 (0.03)
Royalties and production
taxes 0.02 0.02 0.02 0.02
Reclamation and mine closure
costs 0.01 -- 0.01 0.01
Costs applicable to sales $ 0.71 $ 0.45 $ 0.75 $ 0.55
Depreciation, depletion
and amortization $ 0.16 $ 0.13 $ 0.17 $ 0.18
OPERATING STATISTICS - PAJINGO AND JUNDEE
PAJINGO
Three months ended Six months ended
June 30, June 30,
------------------- --------------------
2006 2005 2006 2005
-------- -------- -------- --------
Tons mined (000 dry short tons) 138 144 252 321
Tons milled (000 dry short tons) 140 165 255 333
Average ore grade (oz/ton) 0.252 0.287 0.261 0.273
Average mill recovery rate 96.8% 96.5% 96.9% 96.7%
Ounces produced (000):
Consolidated 34.0 44.0 65.8 87.9
Equity 34.0 44.0 65.8 87.9
Ounces sold (000):
Consolidated 35.3 42.8 67.4 86.7
Equity 35.3 42.8 67.4 86.7
Production costs (in millions):
Costs applicable to sales $ 16 $ 14 $ 30 $ 30
Depreciation, depletion
and amortization $ 6 $ 6 $ 11 $ 12
Production costs (per ounce sold):
Direct mining and production
costs $ 430 $ 332 $ 427 $ 334
Capitalized mining and other (11) (8) (7) (7)
Royalties and production taxes 17 12 16 14
Reclamation and mine closure
costs 3 2 3 2
Costs applicable to sales $ 439 $ 338 $ 439 $ 343
Depreciation, depletion
and amortization $ 167 $ 132 $ 158 $ 135
JUNDEE
Three months ended Six months ended
June 30, June 30,
------------------- --------------------
2006 2005 2006 2005
-------- -------- -------- --------
Tons mined (000 dry short tons):
Open pit
Ore 383 437 541 570
Waste 1,202 3,329 2,104 4,882
Total 1,585 3,766 2,645 5,452
Underground 316 293 589 585
Tons milled (000 dry
short tons) 636 626 1,193 1,261
Average ore grade (oz/ton) 0.130 0.132 0.126 0.139
Average mill recovery rate 91.8% 92.3% 91.8% 92.7%
Ounces produced (000):
Consolidated 77.3 78.0 139.9 166.1
Equity 77.3 78.0 139.9 166.1
Ounces sold (000):
Consolidated 77.4 78.2 139.6 166.1
Equity 77.4 78.2 139.6 166.1
Production costs (in millions):
Costs applicable to sales $ 27 $ 31 $ 53 $ 61
Depreciation, depletion
and amortization $ 6 $ 6 $ 11 $ 12
Production costs (per ounce sold):
Direct mining and production
costs $ 326 $ 367 $ 359 $ 342
Capitalized mining and other (2) 16 (1) 12
Royalties and production taxes 15 12 16 11
Reclamation and mine closure
costs 5 5 6 4
Costs applicable to sales $ 344 $ 400 $ 380 $ 369
Depreciation, depletion and
amortization $ 78 $ 76 $ 78 $ 75
OPERATING STATISTICS - TANAMI AND KALGOORLIE
TANAMI
Three months ended Six months ended
June 30, June 30,
------------------- --------------------
2006 2005 2006 2005
-------- -------- -------- --------
Tons mined (000 dry
short tons) 523 465 1,046 996
Tons milled (000 dry
short tons) 811 1,196 1,603 2,328
Average ore grade (oz/ton) 0.117 0.110 0.130 0.120
Average mill recovery rate 94.6% 94.0% 95.1% 94.6%
Ounces produced (000):
Consolidated 90.5 127.5 198.5 268.3
Equity 90.5 127.5 198.5 268.3
Ounces sold (000):
Consolidated 90.0 126.7 198.6 273.6
Equity 90.0 126.7 198.6 273.6
Production costs (in millions):
Costs applicable to sales $ 36 $ 44 $ 74 $ 87
Depreciation, depletion
and amortization $ 6 $ 9 $ 13 $ 17
Production costs (per ounce sold):
Direct mining and production
costs $ 353 $ 320 $ 324 $ 290
Capitalized mining and other (1) 6 (1) 5
Royalties and production
taxes 48 17 46 18
Reclamation and mine closure
costs 3 3 3 3
Costs applicable to sales $ 403 $ 346 $ 372 $ 316
Depreciation, depletion
and amortization $ 76 $ 67 $ 69 $ 64
KALGOORLIE
Three months ended Six months ended
June 30, June 30,
------------------- --------------------
2006 2005 2006 2005
-------- -------- -------- --------
Tons mined (000 dry short tons):
Open pit
Ore 1,777 1,915 3,594 3,874
Waste 10,031 9,427 19,476 17,812
Total 11,808 11,342 23,070 21,686
Underground 51 55 104 108
Tons milled (000 dry
short tons) 1,476 1,897 3,175 3,726
Average ore grade (oz/ton) 0.065 0.069 0.064 0.073
Average mill recovery rate 85.8% 85.7% 84.1% 87.2%
Ounces produced (000):
Consolidated 83.1 95.8 175.5 212.4
Equity 83.1 95.8 175.5 212.4
Ounces sold (000):
Consolidated 81.7 93.1 175.7 209.6
Equity 81.7 93.1 175.7 209.6
Production costs (in millions):
Costs applicable to sales $ 39 $ 32 $ 83 $ 70
Depreciation, depletion
and amortization $ 7 $ 3 $ 13 $ 8
Production costs (per ounce sold):
Direct mining and production
costs $ 464 $ 328 $ 455 $ 307
Capitalized mining and other (3) (2) (3) 10
Royalties and production
taxes 16 13 15 12
Reclamation and mine closure
costs 6 3 6 3
Costs applicable to sales $ 483 $ 342 $ 473 $ 332
Depreciation, depletion
and amortization $ 76 $ 37 $ 73 $ 38
OPERATING STATISTICS - MARTHA
Three months ended Six months ended
June 30, June 30,
------------------- --------------------
2006 2005 2006 2005
-------- -------- -------- --------
Tons mined (000 dry short tons):
Open pit
Ore 143 276 717 553
Waste -- 225 75 406
Total 143 501 792 959
Underground 29 -- 47 --
Tons milled (000 dry
short tons) 313 313 615 644
Average ore grade (oz/ton) 0.112 0.160 0.116 0.154
Average mill recovery rate 93.8% 92.4% 94.1% 92.7%
Ounces produced (000):
Consolidated 31.4 46.4 69.4 91.5
Equity 31.4 46.4 69.4 91.5
Ounces sold (000):
Consolidated 30.7 46.5 67.5 90.6
Equity 30.7 46.5 67.5 90.6
Production costs (in millions):
Costs applicable to sales $ 5 $ 7 $ 11 $ 14
Depreciation, depletion
and amortization $ 3 $ 4 $ 6 $ 9
Production costs (per ounce sold):
Direct mining and production
costs $ 237 $ 207 $ 241 $ 211
Capitalized mining and other (98) (59) (85) (55)
Royalties and production
taxes -- -- -- --
Reclamation and mine closure
costs 7 2 6 2
Costs applicable to sales $ 146 $ 150 $ 162 $ 158
Depreciation, depletion
and amortization $ 91 $ 93 $ 88 $ 100
OPERATING STATISTICS - GOLDEN GIANT AND LA HERRADURA
GOLDEN GIANT
Three months ended Six months ended
June 30, June 30,
------------------- --------------------
2006 2005 2006 2005
-------- -------- -------- --------
Tons mined (000 dry
short tons) -- 140 13 281
Tons milled (000 dry
short tons) -- 142 17 284
Average ore grade (oz/ton) -- 0.297 0.627 0.284
Average mill recovery rate 0.0% 95.9% 96.9% 95.7%
Ounces produced (000):
Consolidated 14.3 40.5 48.4 78.2
Equity 14.3 40.5 48.4 78.2
Ounces sold (000):
Consolidated 14.3 39.9 48.4 77.7
Equity 14.3 39.9 48.4 77.7
Production costs (in millions):
Costs applicable to sales $ 2 $ 12 $ 10 $ 24
Depreciation, depletion
and amortization $ 0 $ 3 $ 1 $ 6
Production costs (per ounce sold):
Direct mining and production
costs $ 138 $ 283 $ 192 $ 308
Capitalized mining and other 3 1 2 1
Royalties and production
taxes -- 2 -- 2
Reclamation and mine closure
costs 16 3 9 3
Costs applicable to sales $ 157 $ 289 $ 203 $ 314
Depreciation, depletion
and amortization $ 0 $ 68 $ 12 $ 70
LA HERRADURA
Three months ended Six months ended
June 30, June 30,
------------------- --------------------
2006 2005 2006 2005
-------- -------- -------- --------
Tons mined (000 dry short tons):
Ore 1,079 1,023 2,016 1,909
Waste 3,418 2,602 6,211 4,470
Total 4,497 3,625 8,227 6,379
Tons processed (000 dry
short tons) 1,079 1,023 2,016 1,909
Average ore grade (oz/ton) 0.023 0.027 0.023 0.030
Ounces produced (000):
Consolidated 20.0 21.6 40.2 40.5
Equity 20.0 21.6 40.2 40.5
Ounces sold (000):
Consolidated 20.0 21.6 40.2 40.5
Equity 20.0 21.6 40.2 40.5
Production costs (in millions):
Costs applicable to sales $ 4 $ 3 $ 10 $ 7
Depreciation, depletion
and amortization $ 2 $ 1 $ 4 $ 2
Production costs (per ounce sold):
Direct mining and production
costs $ 226 $ 168 $ 249 $ 187
Capitalized mining and other 1 (25) -- (16)
Royalties and production
taxes -- -- -- --
Reclamation and mine closure
costs 2 1 2 2
Costs applicable to sales $ 229 $ 144 $ 251 $ 173
Depreciation, depletion
and amortization $ 98 $ 50 $ 98 $ 55
OPERATING STATISTICS - KORI KOLLO AND ZARAFSHAN
KORI KOLLO
Three months ended Six months ended
June 30, June 30,
------------------- --------------------
2006 2005 2006 2005
-------- -------- -------- --------
Tons mined (000 dry short tons):
Ore 2,059 n/a 5,419 n/a
Waste 3,560 n/a 5,906 n/a
Total 5,619 n/a 11,325 n/a
Tons processed (000 dry
short tons) 2,059 n/a 5,419 n/a
Average ore grade (oz/ton) 0.020 n/a 0.022 n/a
Ounces produced (000):
Consolidated 34.1 8.7 77.9 15.7
Equity 30.0 7.7 68.5 13.8
Ounces sold (000):
Consolidated 30.8 7.8 74.6 14.8
Equity 27.1 6.9 65.7 13.0
Production costs (in millions):
Costs applicable to sales $ 10 $ 2 $ 17 $ 4
Depreciation, depletion
and amortization $ 2 $ 1 $ 4 $ 1
Production costs (per ounce sold):
Direct mining and production
costs $ 182 $ 236 $ 157 $ 235
Capitalized mining and other (11) (20) (9) (21)
Royalties and production
taxes 128 18 71 18
Reclamation and mine closure
costs 10 42 8 44
Costs applicable to sales $ 309 $ 276 $ 227 $ 276
Depreciation, depletion
and amortization $ 67 $ 23 $ 56 $ 29
ZARAFSHAN
Three months ended Six months ended
June 30, June 30,
------------------- --------------------
2006 2005 2006 2005
-------- -------- -------- --------
Tons mined (000 dry
short tons) n/a n/a n/a n/a
Tons processed (000 dry
short tons) 1,869 2,007 3,836 3,670
Average ore grade (oz/ton) 0.039 0.032 0.037 0.033
Ounces produced (000):
Consolidated 26.8 29.7 54.2 63.9
Equity 26.8 29.7 54.2 63.9
Ounces sold (000):
Consolidated 27.3 29.8 56.6 64.1
Equity 27.3 29.8 56.6 64.1
Production costs (in millions):
Costs applicable to sales $ 6 $ 7 $ 13 $ 14
Depreciation, depletion
and amortization $ 2 $ 2 $ 4 $ 4
Production costs (per ounce sold):
Direct mining and production
costs $ 234 $ 229 $ 233 $ 212
Capitalized mining and other 2 4 2 2
Royalties and production
taxes -- -- -- --
Reclamation and mine closure
costs 2 2 2 2
Costs applicable to sales $ 238 $ 235 $ 237 $ 216
Depreciation, depletion
and amortization $ 78 $ 74 $ 78 $ 71
GOLD DERIVATIVE POSITION (AT JUNE 30, 2006)
CURRENT MATURITY SUMMARY (1) (3) (000 OUNCES)
Put Option Price Capped
Contracts(4) Contracts (4)
------------------- --------------------
Year Ozs Price(2) Ozs Price(2)
- --------------------------------- -------- -------- -------- --------
2006 20 $ 392 -- --
2007 20 $ 397 -- --
2008 -- -- 1,000 $ 384
2009 -- -- 600 $ 381
2010 -- -- -- --
2011 -- -- 250 $ 392
Total/Average 40 $ 394 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
second of three annual installments of 161,111 ounces of gold in June 2006.
The final installment of 161,111 ounces of gold is scheduled to be
delivered in June 2007.
(4) The gold put option contracts had a negative mark-to-market value of $2
million at June 30, 2006. The price capped contracts had a negative
mark-to-market of $532 million at June 30, 2006.
The Company's second quarter earnings conference call and web cast
presentation will be held on July 27, 2006 beginning at 4:00 p.m. Eastern Time
(2:00 p.m. Mountain Time). To participate:
Dial-In Number: 517.308.9058
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 and Media Contacts
Randy Engel 303.837.6033 randy.engel@newmont.com
John Gaensbauer 303.837.5153 john.gaensbauer@newmont.com
Seth Foreman 303.837.5247 seth.foreman@newmont.com
Joy Shults 303.837.6020 joy.shults@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- 07/27/2006
/CONTACT: Randy Engel, +1-303-837-6033, randy.engel@newmont.com, or John
Gaensbauer, +1-303-837-5153, john.gaensbauer@newmont.com, or Seth Foreman,
+1-303-837-5247, seth.foreman@newmont.com, or Joy Shults, +1-303-837-6020,
joy.shults@newmont.com, all of Newmont Mining Corporation/
/Web site: http://www.newmont.com /
(NEM)