Exhibit 99.1
NEWMONT ANNOUNCES FOURTH QUARTER AND 2006 RESULTS;
NET INCOME INCREASES 146% TO $791 MILLION ($1.76 PER SHARE)
DENVER, Feb. 22 /PRNewswire-FirstCall/ -- Newmont Mining Corporation (NYSE:
NEM) today announced net income for 2006 increased 146% to $791 million ($1.76
per share) compared with $322 million ($0.72 per share) for 2005. Net income for
the fourth quarter increased by 260% to $223 million ($0.50 per share), compared
with $62 million ($0.14 per share) for the fourth quarter of 2005.
Wayne W. Murdy, Chairman and Chief Executive Officer, said, "We finished
2006 on a high note, generating record earnings of $791 million, despite facing
a challenging industry landscape. Our leverage to gold prices grew again this
year, as our cash operating margin per ounce increased by over 44%, outpacing
the 36% rise in the realized gold price. We continue to reinvest in our business
while maintaining our positive outlook for the gold price. During 2006, we
brought the Phoenix and Leeville mines in Nevada and the Ahafo mine in Ghana
into commercial production. We also continued development of the Boddington
project in Australia, the power plant in Nevada and the gold mill at Yanacocha
in Peru. For 2007, we expect equity gold sales to temporarily decline to between
5.2 and 5.6 million equity ounces before we begin to fully realize the benefits
of our investments in Nevada, Ghana and Australia.
"Despite industry wide challenges of declining reserve grades and escalating
costs, we grew our reserves for the fifth straight year, adding 52.5 million
ounces of gold to reserves during this period, while bringing three new mines
into commercial production. We are committed to building for the future with a
renewed conviction in our goal of being the Gold Company of Choice for our
investors, employees, host communities and partners."
The Company also announced consolidated gold sales for 2006 of 7.4 million
ounces (5.9 million equity ounces) at costs applicable to sales of $304 per
ounce and an average realized price of $599 per ounce. Consolidated gold sales
for the fourth quarter were 2.0 million ounces (1.7 million equity ounces) at
costs applicable to sales of $322 per ounce and an average realized price of
$619 per ounce.
FINANCIAL AND OPERATING ($ millions, except per share)
Q4 2006 Q4 2005 2006 2005
--------- --------- --------- ---------
Revenues $ 1,460 $ 1,292 $ 4,987 $ 4,352
Income from continuing
operations $ 215 $ 69 $ 840 $ 360
Income from continuing
operations per share $ 0.48 $ 0.16 $ 1.87 $ 0.81
Net income $ 223 $ 62 $ 791 $ 322
Net income per share $ 0.50 $ 0.14 $ 1.76 $ 0.72
Consolidated gold sales
(000 ounces) (1) 2,011 2,407 7,361 8,429
Equity gold sales
(000 ounces) (1), (2) 1,716 1,799 5,870 6,493
Average realized gold price
($/ounce) $ 619 $ 472 $ 599 $ 441
Costs applicable to sales
($/ounce) $ 322 $ 232 $ 304 $ 237
Cash operating margin
($/ounce) (3) $ 297 $ 240 $ 295 $ 204
(1) Includes 17,400 and 100,300 ounces sold (consolidated and equity) for
the quarter and year ended December 31, 2006, respectively, and 22,100
ounces sold (consolidated and equity) for the quarter and year ended
December 31, 2005, from Phoenix and Leeville start-up activities which
are not included in Revenue, Costs applicable to sales and Depreciation,
depletion and amortization per ounces calculations prior to commencing
operations on October 1, 2006 and October 14, 2006, respectively.
Revenues and costs during start-up activities are included in Other
income, net.
(2) Includes sales from Holloway and Zarafshan operations.
(3) Cash operating margin ($/ounce) is defined as the Average realized gold
price ($/ounce) less Costs applicable to sales ($/ounce).
Exploration and Reserve Highlights
For 2006, the Company added 7.9 million equity ounces of reserves through
exploration and 3.7 million equity ounces through acquisition, offsetting 7.4
million equity ounces of depletion, 1.5 million equity ounces expropriated in
Uzbekistan and 2.0 million equity ounces of revisions.
(1) Revisions consist of downward adjustments to reserves at Batu Hijau,
Phoenix and Midas due to a combination of factors including less
favorable geotechnical slopes, lower metallurgical recoveries, higher
operating costs, and higher cutoff grades.
(2) For detailed information on the Company's year-end reserves, please
refer to the Supplemental Information in this release.
Reserves increased by 0.7 million equity ounces, with Australia, Ghana, and
La Herradura increasing reserves in excess of depletion by 3.6, 1.6, and 0.6
million equity ounces, respectively. Yanacocha's reserves decreased 1.7 million
equity ounces, roughly equal to depletion. Nevada nearly covered depletion of
3.0 million equity ounces with a net reduction to reserves of 0.2 million equity
ounces. Due to geotechnical revisions and higher processing and mining costs,
Batu Hijau reserves declined by 1.3 million equity ounces.
Forecasted declining ore grades, increasing strip ratios and increasing gold
prices all impacted 2006 reserves. For the year, the Company's reserve grade
remained constant at 0.034 ounces per ton while the average strip ratio
increased to 2.08 in 2006 from 1.93 in 2005. The gold price basis for reserve
calculations increased from $400 per ounce in 2005 to $500 per ounce in 2006.
Non-reserve mineralization (NRM) increased by approximately 14%, primarily
as a result of the addition of new NRM in Nevada, Australia, Ghana and Mexico,
as well as the increased interests in Boddington and Akyem.
For 2006, our reserve sensitivity is approximately 5.0 million equity ounces
for every $25 change in the gold price between $475 and $550 per ounce, assuming
costs remain constant. Drill data limitations constrain the Company's ability to
reliably project reserve sensitivities beyond $550 per ounce gold price.
Financial Review
Fourth quarter 2006 net income was $223 million ($0.50 per share), compared
with $62 million ($0.14 per share) for the fourth quarter 2005. For 2006, net
income was $791 million ($1.76 per share), compared with $322 million ($0.72 per
share) for 2005. Net income for the fourth quarter and the year was impacted by
the following which increased net income for the quarter by $13 million.
IMPACT OF THE FOLLOWING TRANSACTIONS
(after-tax), $ Million
Q4 2006 Q4 2005 2006 2005
--------- --------- --------- ---------
Gain on sale of assets $ -- $ -- $ 193 $ 45
Tax estimate revisions, net $ 44 $ -- $ 35 $ 27
Prepaid forward (opportunity cost) $ -- $ -- $ (49) $ (4)
Reclamation estimate revisions $ (29) $ (16) $ (31) $ (22)
Buyat Bay litigation & settlement $ (3) $ (18) $ (14) $ (30)
Stock option accounting $ (5) $ -- $ (19) $ --
Peruvian mining royalty $ (2) $ -- $ (11) $ --
Write-down of assets $ -- $ (67) $ -- $ (67)
Discontinued operations $ 8 $ (7) $ (49) $ (38)
The Company generated net cash from continuing operations of $435 million in
the fourth quarter of 2006, after a $47 million increase in working capital. For
2006, cash from continuing operations was $1,237 million, compared with $1,243
million for 2005.
OPERATING HIGHLIGHTS
NEVADA Q4 2006 Q4 2005 2006 2005
- ----------------------------------- --------- --------- --------- ---------
Consolidated gold sales
(000 ounces) 887 652 2,534 2,444
Equity gold sales
(000 ounces) 887 606 2,427 2,287
Costs applicable to sales
($/ounce) $ 363 $ 352 $ 403 $ 333
(1) Includes 17,400 and 100,300 ounces sold (consolidated and equity) for
the quarter and year ended December 31, 2006, respectively, and 22,100
ounces sold (consolidated and equity) for the quarter and year ended
December 31, 2005, from Phoenix and Leeville start-up activities which
are not included in Revenue, Costs applicable to sales and Depreciation,
depletion and amortization per ounces calculations prior to commencing
operations on October 1, 2006 and October 14, 2006, respectively.
Revenues and costs during start-up activities are included in Other
income, net.
In Nevada, gold ounces sold increased in the fourth quarter of 2006 from the
year-ago quarter, due to the commencement of commercial production at Phoenix
and Leeville in October 2006, increased underground production and increased
access to open pit ore at Twin Creeks, partially offset by lower production at
Lone Tree. The Phoenix project commenced commercial production on October 1,
2006, followed by the Leeville project on October 14, 2006. Phoenix and Leeville
produced 160,800 and 243,700 ounces in the fourth quarter and year,
respectively, including 17,400 and 100,300 start-up ounces during the fourth
quarter and year, respectively. Gold production at Lone Tree declined as mining
was completed in 2006. Overall in Nevada, mill ore grade decreased 27% and mill
throughput increased 51% from the year ago quarter, primarily as a result of the
start-up of the lower grade Phoenix operation. Heap leach production was higher
than 2005 due to a 50% increase in average grade of ore placed on the leach
pads. Costs applicable to sales per ounce increased 3% for the fourth quarter,
primarily due to increased labor, diesel, power, cyanide and other commodity
prices, and higher underground contract service costs. Depreciation, depletion
and amortization increased 126% quarter over quarter as a result of the
investment in new equipment and facilities.
YANACOCHA Q4 2006 Q4 2005 2006 2005
- ----------------------------------- --------- --------- --------- ---------
Consolidated gold sales
(000 ounces) 439 1,063 2,572 3,328
Equity gold sales
(000 ounces) 225 546 1,321 1,709
Costs applicable to sales
($/ounce) $ 244 $ 145 $ 193 $ 147
At Yanacocha in Peru, gold ounces sold decreased in the fourth quarter of
2006 from 2005, primarily due to a 46% decrease in ore grade and a 33% decrease
in ore tons mined and placed on the leach pads as anticipated in the mine plan.
The proportion of waste tons mined increased from 0.5 waste tons per ton of ore
in the fourth quarter of 2005 to 1.2 waste tons per ton of ore in the fourth
quarter of 2006. Costs applicable to sales per ounce increased 68% in the fourth
quarter of 2006 due to decreased production, increased consumption and increased
prices of diesel, cyanide, lime and other commodities and higher worker's
participation share and royalties due to increased gold prices, partially offset
by an increase in by-product credits.
AUSTRALIA/NEW ZEALAND Q4 2006 Q4 2005 2006 2005
- ----------------------------------- --------- --------- --------- ---------
Consolidated gold sales
(000 ounces) 347 397 1,350 1,601
Equity gold sales
(000 ounces) 347 397 1,350 1,601
Costs applicable to sales
($/ounce) $ 387 $ 315 $ 384 $ 317
Australia/New Zealand operations sold fewer ounces of gold in the fourth
quarter of 2006 compared to the same period in 2005, primarily due to decreased
ore tons mined and lower mill throughput. Costs applicable to sales per ounce
increased in the fourth quarter 2006 as compared to the same period in 2005
primarily due to the decrease in ounces sold, as well as increased commodity
costs. Costs applicable to sales were also impacted by the change in accounting
for open pit waste removal costs. Under accounting rules, in 2005, the deferral
of mining costs reduced Costs applicable to sales per ounce by $21 per ounce.
BATU HIJAU Q4 2006 Q4 2005 2006 2005
- ----------------------------------- --------- --------- --------- ---------
Consolidated copper sales
(million pounds) 147 129 435 573
Equity copper sales
(million pounds) 78 68 230 303
Costs applicable to sales
($/pound copper) $ 0.64 $ 0.60 $ 0.71 $ 0.53
Average realized copper
price, net $ 1.63 $ 1.30 $ 1.54 $ 1.17
Consolidated gold sales
(000 ounces) 169 181 435 721
Equity gold sales
(000 ounces) 89 96 230 381
Costs applicable to
sales ($/ounce) $ 192 $ 162 $ 209 $ 152
At Batu Hijau in Indonesia, copper sales increased by 14% and gold sales
decreased by 7% in the fourth quarter of 2006 from the year ago quarter. The
increase in copper sales was primarily driven by higher mill throughput and
copper ore grades as well as an increase in total tons mined due to the addition
of new mining equipment, shorter hauling distance and increased shovel
productivity. The decrease in gold sales was primarily due to lower average gold
grades in 2006 versus the year ago quarter. Costs applicable to sales per pound
of copper and per ounce of gold increased due to increased mining activity and
increased diesel, tire, labor and process maintenance costs.
AHAFO Q4 2006 Q4 2005 2006 2005
- ----------------------------------- --------- --------- --------- ---------
Consolidated gold sales
(000 ounces) 125 -- 202 --
Equity gold sales
(000 ounces) 125 -- 202 --
Costs applicable to sales
($/ounce) $ 326 $ -- $ 297 $ --
Ahafo commenced commercial production in August with gold sales of 124,800
and 202,100 ounces for the quarter and year ended December 31, 2006,
respectively. Gold production was impacted by nation-wide power rationing due to
low water levels at Lake Volta serving Ghana's Akosombo hydroelectric
facilities. Costs applicable to sales in 2006 benefited from the capitalization
of pre-production costs and are expected to be higher in 2007 as a result. In
addition, 2007 costs are expected to be negatively impacted by increased power
costs. Production may also be negatively impacted in 2007 from potential future
power rationing. Additional temporary diesel generating capacity is being
installed, and longer-term, lower-cost solutions to the current power shortages
are being explored.
OTHER OPERATIONS Q4 2006 Q4 2005 2006 2005
- ----------------------------------- --------- --------- --------- ---------
Consolidated gold sales
(000 ounces) 45 114 267 337
Equity gold sales
(000 ounces) 42 109 252 325
Costs applicable to sales
($/ounce) $ 272 $ 211 $ 222 $ 233
Other operations include the Kori Kollo mine in Bolivia, the La Herradura
mine in Mexico and the Golden Giant mine in Canada. Gold sales decreased in the
fourth quarter of 2006 from the year ago quarter due to the completion of mining
at Golden Giant in December 2005 and a higher proportion of waste tons mined at
Kori Kollo, which reduced the ore available to be placed on leach pads. Costs
applicable to sales per ounce increased from the fourth quarter of 2006 compared
to 2005 as a result of the decrease in production and increased labor, diesel
and other commodity costs.
Merchant Banking
For the fourth quarter of 2006, royalty and dividend income was
$32 million, 45% higher than the year ago quarter. For 2006, royalty and
dividend income was $120 million, up approximately 52% over last year. At the
end of 2006, the market value of the marketable equity securities portfolio was
$1.4 billion, an increase of $413 million from year-end 2005. Unrealized pre-tax
gains in the portfolio were approximately $820 million as of December 31, 2006.
During the fourth quarter of 2006, the Company completed the sale of the
Holloway mine in Canada for cash proceeds of $40 million, and a royalty.
In January 2007, the Company entered into an agreement with Oxiana Resources
(Oxiana) and Agincourt Resources (Agincourt) in connection with Oxiana's offer
to acquire Agincourt. Subject to satisfaction of certain conditions, the
transaction is expected to close in mid-2007. The Company agreed to sell its
19.9% interest in Agincourt in exchange for approximately 2% of Oxiana. The
exchange follows the sale of the Company's Martabe project to Agincourt in
exchange for 43.5 million Agincourt shares in August 2006.
Exploration, Advanced Projects, Research & Development
Exploration expenditures were $50 million in the fourth quarter of 2006
compared with $44 million in the year ago quarter. Advanced projects, research
and development expenditures were $26 million in the fourth quarter of 2006 and
2005. For 2006, exploration expenditures were $170 million, with advanced
projects, research and development expenditures totaling $94 million.
Of the 2006 exploration spending, 68% was dedicated to near-mine exploration
and reserve development and 32% was spent on greenfields exploration. The
Company grew equity reserves by 0.7 million equity ounces to 93.9 million ounces
net of 7.4 million equity ounces of depletion. Additionally, non-reserve
mineralization (NRM) increased by approximately 14%, net of reserve conversion.
Acquisitions of additional ownership interests at Boddington in Australia
and Akyem in Ghana resulted in the addition of 3.7 million equity ounces of
reserves in 2006, which was partially offset by the reduction of 3.5 million
equity ounces of reserves due to revisions of the mine plans at Batu Hijau,
Phoenix and Midas as well as the Republic of Uzbekistan's expropriation of the
Company's interest in the Zarafshan-Newmont Joint Venture. The Company is
currently seeking compensation from the Republic of Uzbekistan in two separate
international arbitration venues.
In Australia, exploration at Boddington, Kalgoorlie, and Jundee contributed
a total of 2.3 million equity ounces of reserves. In North America,
approximately 3.6 million equity ounces were added net of revision from
exploration in Nevada and Mexico. Additionally, in the Ahafo region of Ghana,
exploration contributed 0.7 million equity ounces from the Susuan and Awonsu
areas.
The Company's 2007 exploration efforts are expected to focus on near-mine
programs on the Carlin Trend in Nevada, Mexico, Yanacocha in Peru, and the Sefwi
Belt in Ghana as well as regions of Australia. Additionally, there are
encouraging greenfields projects in the pipeline in regions such as the Guiana
Shield in South America, the Andes in Peru, and the Greenstone Belts in West
Africa that have the potential to increase NRM.
Capital Project Development Update
Capital expenditures in 2006 were primarily related to the completion of
Ahafo ($117 million), Leeville ($104 million), and Phoenix ($87 million) as well
as the continued construction of the Nevada power plant ($239 million), the
Yanacocha gold mill ($44 million) and Boddington in Australia ($93 million).
Construction of a 200 megawatt coal-fired power plant in Nevada was
approximately 37% complete at the end of 2006 and remains on target for
completion in 2008. The capital cost is expected to be between $620 and $640
million. The lower cost of self-generating electricity, when compared to our
projection of future market prices in the region, is expected to reduce costs
applicable to sales by up to $25 per ounce.
The Company also began construction of a gold mill at Yanacocha during the
year, which was approximately 38% complete at year-end. The project is expected
to cost between $250 and $270 million, with full production anticipated by
mid-2008. Upon completion, the gold mill is expected to enhance the processing
efficiency of more complex ores, expand future reserves, improve financial
returns and extend the operating life at Yanacocha.
Development of Boddington remains on schedule (approximately 21% complete),
with start-up expected in late 2008 or early 2009. Newmont's share of the
expected capital cost is between $0.9 and $1.1 billion. The completion of this
project is anticipated to provide reserve growth potential with a competitive
cost profile in a developed and stable country. Pre-stripping activities at the
project commenced in the first quarter of 2007.
As previously announced, the Akyem project is undergoing optimization and a
feasibility study update to reflect increases in estimated capital and operating
costs while incorporating additional exploration drilling data. A development
decision is currently expected by the end of 2007. Akyem gold reserves were 7.7
million equity ounces at the end of 2006.
2007 Guidance
For 2007, we expect equity gold sales to temporarily decline before
realizing the benefits of our investments in Nevada, Ghana and Australia. In
2007, the Company expects equity gold sales of between 5.2 and 5.6 million
ounces, primarily as a result of lower production from Yanacocha and Australia,
as well as the closure of Lone Tree in Nevada and Golden Giant in Canada in
2006. Previously announced asset sales, and lost production from the
expropriation of the Company's 50% interest in the Zarafshan-Newmont Joint
Venture in Uzbekistan, will also contribute to lower gold sales in 2007.
Costs applicable to sales for 2007 are expected to be approximately 25%
higher than 2006, primarily from lower production from Yanacocha and Australia,
as well as expected higher labor, consumables, and energy prices in all
operating regions. Additionally, future potential power interruptions in Ghana
could further impact the Company's costs applicable to sales in 2007. After
2007, the Company expects to realize cost efficiencies and benefits from
investments in the Leeville, Phoenix and Ahafo mines, as well as the completion
of Boddington, the construction of the power plant in Nevada and the completion
of the gold mill at Yanacocha.
The Company anticipates capital expenditures of between $1.8 and
$2.0 billion in 2007, with approximately one third invested in Nevada, one third
in Australia/New Zealand, and the remaining one third invested at the other
locations. Approximately $0.8 to $0.9 billion of the 2007 capital budget is
allocated to sustaining investments, with the remaining $1.0 to $1.1 billion
allocated to new project development and improvement initiatives, including the
Boddington project, continued development of the power plant in Nevada, and
completion of the Yanacocha gold mill.
Consolidated financial guidance for 2007 is summarized in the following
table.
CONSOLIDATED FINANCIAL GUIDANCE ($ millions, except tax rate)
- ------------------------------------------------------------
Royalty and dividend income $100 - $110
Depreciation, depletion & amortization $800 - $865
Exploration $170 - $175
Advanced projects, research and development $ 85 - $100
General and administrative $155 - $165
Interest expense, net $ 95 - $105
Tax rate (assuming $650/oz gold) 29% - 34%
Regional equity gold sales, costs applicable to sales and capital
expenditure guidance are summarized in the following sections.
Nevada, USA
Equity gold sales in Nevada are expected to remain stable in 2007 at
approximately 2.35 to 2.55 million ounces. Higher production from Phoenix,
Leeville and Twin Creeks is expected to be partially offset by the shut-down of
Lone Tree at the end of 2006. Higher mill throughput and mill recoveries are
expected to be offset by lower planned mill grades and leach recoveries in 2007.
Costs applicable to sales in Nevada are also expected to remain stable in
2007 at approximately $375 to $400 per ounce. Ongoing labor and energy cost
pressures are expected to be offset by reduced contracted services and other
expenses, as well as lower anticipated maintenance costs associated with a newer
mining fleet.
For 2007, capital expenditures in Nevada are expected to remain stable at
approximately $560 to $630 million. Lower anticipated spending on Phoenix and
Leeville is expected to be offset by spending on the power plant.
Yanacocha, Peru
As previously announced, equity gold sales at Yanacocha are expected to
decrease to between 775,000 and 825,000 ounces in 2007, primarily as a result of
lower throughput and ore grades.
Costs applicable to sales at Yanacocha are expected to increase in 2007 to
between $340 and $360 per ounce, primarily as a result of lower production.
Future operating costs are anticipated to be impacted by further mine plan
optimization efforts.
For 2007, capital expenditures at Yanacocha are expected to increase to
approximately $310 to $340 million, primarily as a result of spending on the
gold mill and leach pad expansions.
The Company also continues to evaluate the optimal development plan for
Conga, with timing dependent on cost projections, further community engagement,
the legal and regulatory environment, permitting, and other factors.
Australia/New Zealand
Equity gold sales in Australia/New Zealand are expected to decline to
between 1.275 and 1.325 million ounces in 2007, primarily as a result of lower
planned throughput and ore grades. In New Zealand, lower mill throughput is
anticipated as a result of planned mine sequencing adjustments. Lower
anticipated ore grades at Tanami and planned ramp-down sequencing at Pajingo are
also expected to contribute to declining gold sales in the region until
Boddington begins production.
Costs applicable to sales are expected to increase in Australia/New Zealand
to between $445 and $470 per ounce in 2007, primarily as a result of lower
planned production and higher anticipated labor, electricity and fuel expenses.
Costs applicable to sales are expected to benefit from the completion of
Boddington, starting in 2009.
For 2007, capital expenditures in Australia/New Zealand are expected to
increase to approximately $580 to $645, primarily as a result of Boddington's
higher equity ownership and increased construction spending for the year.
Batu Hijau, Indonesia
Equity gold and copper sales at Batu Hijau are expected to remain stable in
2007 at between 230,000 and 250,000 ounces of gold and between 210 and 230
million pounds of copper. Equity gold and copper sales are expected to be
positively impacted by higher grades and throughput, offset by lower copper
recoveries. During the first quarter of 2007, the remaining copper hedge
contracts are scheduled to expire.
Costs applicable to sales are expected to increase in 2007 to between
$225 and $240 per ounce of gold and between $1.10 and $1.20 per pound of copper.
Increasing operating costs are expected to result primarily from higher
stripping expenses, as well as rising fuel, energy and consumables prices.
Capital expenditures in 2007 at Batu Hijau are expected to remain relatively
stable at approximately $140 to $150 million, with higher mine development
capital essentially offset by other sustaining capital.
Ghana
Gold sales at Ahafo in Ghana are expected to increase in 2007 to between
410,000 and 450,000 ounces, as the mine enters its first full year of
production. Gold production at Ahafo in 2007 is expected to be lower than
previously planned as a result of reduced processing grades and recoveries.
Additionally, higher costs and potential production interruptions could result
from possible future power shortages in 2007. The Company is working to address
the impact of the drought-related power shortages and will continue to cooperate
with the Ghanaian government and an industry-wide consortium to formulate a
series of potential solutions.
Costs applicable to sales at Ahafo are expected to increase substantially to
between $460 and $500 per ounce in 2007, primarily as a result of lower than
previously planned production and higher power costs. Operating costs at Ahafo
are also expected to increase in 2007 as a result of higher anticipated labor
and contracted services expenditures, as well as rising fuel and consumables
prices.
For 2007, capital expenditures in Ghana are expected to be approximately
$180 to $200 million, primarily related to power generation, mine development
and optimization initiatives, as well as continued feasibility work on the Akyem
project. Additional investment may be required in 2007 to provide possible
future power generating capacity.
In 2006, the Company deferred development of the Akyem project pending
completion of permitting, resolution of nation-wide power shortages, and
completion of an optimization study.
STATEMENTS OF CONSOLIDATED INCOME
Q4 2006 Q4 2005 2006 2005
--------- --------- --------- ---------
(unaudited, in millions except per share)
Revenues
Sales - gold, net $ 1,221 $ 1,124 $ 4,316 $ 3,680
Sales - copper, net 239 168 671 672
1,460 1,292 4,987 4,352
Costs and expenses
Costs applicable to sales
(exclusive of depreciation,
depletion and amortization
shown separately below)
Gold 643 553 2,207 1,990
Copper 93 77 308 303
737 630 2,515 2,293
Depreciation, depletion and
amortization 192 169 636 635
Exploration 50 44 170 147
Advanced projects, research
and development 26 26 94 73
General and administrative 46 39 149 134
Write-down of goodwill -- 41 -- 41
Write-down of long-lived assets -- 41 3 43
Other expense 88 53 149 112
1,138 1,043 3,716 3,478
Other income (expense)
Other income, net 65 92 451 269
Interest expense, net of
capitalized interest (27) (22) (97) (97)
38 70 354 172
Income from continuing operations
before income tax, minority
interest and equity income
(loss) of affiliates 360 319 1,625 1,046
Income tax expense (62) (119) (424) (310)
Minority interest in income of
consolidated subsidiaries (84) (132) (363) (380)
Equity income of affiliates 1 1 2 4
Income from continuing
operations 215 69 840 360
Income (loss) from discontinued
operations 8 (7) (49) (38)
Net income $ 223 $ 62 $ 791 $ 322
Income per common share
Basic:
Income from continuing
operations $ 0.48 $ 0.16 $ 1.87 $ 0.81
Income (loss) from
discontinued operations 0.02 (0.02) (0.11) (0.09)
Net income $ 0.50 $ 0.14 $ 1.76 $ 0.72
Diluted:
Income from continuing
operations $ 0.47 $ 0.15 $ 1.86 $ 0.80
Income (loss) from
discontinued operations $ 0.02 $ (0.01) $ (0.11) $ (0.08)
Net income $ 0.49 $ 0.14 $ 1.75 $ 0.72
Basic weighted-average common
shares outstanding 450 446 450 446
Diluted weighted-average common
shares outstanding 452 449 452 449
Cash dividends declared per
common share $ 0.10 $ 0.10 $ 0.40 $ 0.40
CONSOLIDATED BALANCE SHEETS
At December 31,
---------------------------
2006 2005
------------ ------------
(unaudited, in millions)
ASSETS
Cash and cash equivalents $ 1,166 $ 1,082
Marketable securities and other
short-term investments 109 817
Trade receivables 142 94
Accounts receivable 216 135
Inventories 382 304
Stockpiles and ore on leach pads 378 241
Deferred stripping costs -- 78
Deferred income tax assets 156 159
Other current assets 93 90
Current assets 2,642 3,000
Property, plant and mine development, net 6,847 5,581
Investments 1,319 955
Long-term stockpiles and ore on leach pads 812 599
Deferred stripping costs -- 100
Deferred income tax assets 799 515
Other long-term assets 178 181
Goodwill 3,004 2,879
Assets of operations held for sale -- 182
Total assets $ 15,601 $ 13,992
LIABILITIES
Current portion of long-term debt $ 159 $ 195
Accounts payable 340 227
Employee-related benefits 182 176
Derivative instruments 174 270
Income and mining taxes 364 77
Other current liabilities 520 394
Current liabilities 1,739 1,339
Long-term debt 1,752 1,723
Reclamation and remediation liabilities 528 442
Deferred income tax liabilities 703 446
Employee-related benefits 309 273
Other long-term liabilities 135 415
Liabilities of operations held for sale -- 47
Total liabilities 5,166 4,685
Minority interests in subsidiaries 1,098 931
STOCKHOLDERS' EQUITY
Common stock 677 666
Additional paid-in capital 6,703 6,578
Accumulated other comprehensive income 673 378
Retained earnings 1,284 754
Total stockholders' equity 9,337 8,376
Total liabilities and stockholders' equity $ 15,601 $ 13,992
STATEMENTS OF CONSOLIDATED CASH FLOW
Q4 2006 Q4 2005 2006 2005
---------- ---------- ---------- ----------
(unaudited, in millions)
Operating activities
Net income $ 223 $ 62 $ 791 $ 322
Adjustments to reconcile net
income to net cash from
continuing operations:
Depreciation, depletion and
amortization 192 168 636 635
Revenue from prepaid forward
sales obligation -- -- (48) (48)
(Gain) loss from discontinued
operations (8) 7 49 38
Accretion of accumulated
reclamation obligations 9 7 31 27
Amortization of deferred
stripping costs, net -- (56) -- (56)
Deferred income taxes 62 22 (55) (12)
Minority interest expense 84 132 363 380
Gain on asset sales, net (3) (12) (315) (48)
Gain on sale of investments,
net (9) (27) (13) (54)
Hedge (gain) loss, net (128) 95 (46) 99
Other operating adjustments
and write-downs 60 182 150 146
Decrease (increase) in operating
assets:
Trade and accounts receivable (59) (90) (110) (65)
Inventories, stockpiles and
ore on leach pads (65) (24) (388) (179)
Other assets 24 (29) (25) (29)
Increase (decrease) in operating
liabilities:
Accounts payable and other
accrued liabilities 69 76 277 135
Reclamation liabilities (16) (24) (60) (48)
Net cash provided from continuing
operations 435 489 1,237 1,243
Net cash used in discontinued
operations (6) (7) (12) --
Net cash from operations 429 482 1,225 1,243
Investing activities
Additions to property,
plant and mine development (442) (336) (1,551) (1,220)
Investments in marketable
debt and equity securities (114) (771) (1,503) (3,301)
Proceeds from sale of
marketable debt and equity
securities 290 796 2,224 3,358
Acquisitions -- -- (348) --
Proceeds from sale of assets,
net 3 18 334 79
Other 9 (10) 6 (9)
Net cash used in investing
activities of continuing
operations (254) (303) (838) (1,093)
Net cash provided from investing
activities of discontinued
operations 40 1 34 116
Net cash used in investing
activities (214) (302) (804) (977)
Financing activities
Proceeds from debt, net -- -- 198 583
Repayment of debt (48) (76) (111) (217)
Early extinguishment of prepaid
forward sales obligation -- -- (48) --
Dividends paid to common
stockholders (45) (45) (180) (179)
Dividends paid to minority
interests (29) (101) (264) (186)
Proceeds from stock issuance 12 26 78 43
Change in restricted cash and
other 5 3 (6) (5)
Net cash (used in) provided
from financing activities of
continuing operations (105) (193) (333) 39
Net cash used in financing
activities of discontinued
operations -- -- (7) (1)
Net cash (used in) provided
from financing activities (105) (193) (340) 38
Effect of exchange rate changes
on cash (3) -- 3 (3)
Net change in cash and cash
equivalents 107 (13) 84 301
Cash and cash equivalents
at beginning of period 1,059 1,095 1,082 781
Cash and cash equivalents
at end of period $ 1,166 $ 1,082 $ 1,166 $ 1,082
PROVEN AND PROBABLE GOLD RESERVES
Equity Proven, Probable, and Combined Gold Reserves (1)
December 31, 2006
Proven Reserves
----------------------------------------------------
Newmont Tonnage Grade Gold
Deposits/Districts Share (000 tons) (oz/ton) (000 ozs)
- ----------------------------------- ---------- ---------- ---------- ----------
Nevada
Carlin Open Pit (2) 100% 25,900 0.069 1,780
Carlin Underground 100% 1,700 0.44 750
Lone Tree Complex (3) 100% 0 0
Midas (4) 100% 600 0.58 350
Phoenix 100% 0 0
Twin Creeks 100% 15,500 0.084 1,300
Turquoise Ridge (5) 25% 1,200 0.54 640
Nevada In-Process (6) 100% 45,600 0.024 1,120
Nevada Stockpiles (7) 100% 29,100 0.080 2,330
TOTAL NEVADA 119,600 0.069 8,270
Yanacocha, Peru
Conga (Minas Conga)(8) 51.35% 0 0
Yanacocha Open Pits(9) 51.35% 28,500 0.020 560
Yanacocha In-Process (6) 51.35% 24,000 0.028 670
TOTAL YANACOCHA 52,500 0.023 1,230
Australia/New Zealand
Boddington, Western
Australia (10) 66.67% 100,800 0.027 2,760
Jundee, Western Australia 100% 2,500 0.086 220
Kalgoorlie Open Pits
and Underground 50% 34,500 0.061 2,120
Kalgoorlie Stockpiles (5) 50% 13,100 0.032 420
Total Kalgoorlie, Western
Australia 50% 47,600 0.053 2,540
Martha, New Zealand (11) 100%
Pajingo, Queensland 100% 600 0.31 170
Tanami Underground and
Open Pits 100% 5,100 0.16 800
Tanami Stockpiles (5) 100% 400 0.084 40
Total Tanami, Northern
Territories 100% 5,500 0.15 840
TOTAL AUSTRALIA/NEW ZEALAND 157,000 0.042 6,530
Batu Hijau, Indonesia
Batu Hijau Open Pit (12) 52.875% 106,100 0.015 1,540
Batu Hijau
Stockpiles (5) (12) 52.875% 0 0
TOTAL BATU HIJAU 106,100 0.015 1,540
Ghana, West Africa
Ahafo(13) 100% 0 0
Akyem(14) 100% 0 0
TOTAL GHANA 0 0
Other Operations
Holloway, Ontario (15) 0 0
Kori Kollo, Bolivia 88% 20,300 0.004 80
La Herradura, Mexico 44% 27,000 0.020 540
Zarafshan, Uzbekistan (16) 0% 0 0
TOTAL OTHER OPERATIONS 47,300 0.013 620
TOTAL NEWMONT WORLDWIDE 482,500 0.038 18,190
Equity Proven, Probable, and Combined Gold Reserves (1)
December 31, 2006
Probable Reserves
------------------------------------------
Tonnage Grade Gold
Deposits/Districts (000 tons) (oz/ton) (000 ozs)
- ------------------------------ ------------ ------------ ------------
Nevada
Carlin Open Pit (2) 245,700 0.040 9,750
Carlin Underground 5,700 0.44 2,510
Lone Tree Complex (3) 0 0
Midas (4) 600 0.35 200
Phoenix 295,200 0.027 8,080
Twin Creeks 49,300 0.075 3,680
Turquoise Ridge (5) 900 0.54 510
Nevada In-Process (6) 0 0
Nevada Stockpiles (7) 2,500 0.045 110
TOTAL NEVADA 599,900 0.041 24,840
Yanacocha, Peru
Conga (Minas Conga)(8) 317,200 0.019 6,080
Yanacocha Open Pits(9) 249,300 0.031 7,750
Yanacocha In-Process (6) 0 0
TOTAL YANACOCHA 566,500 0.024 13,830
Australia/New Zealand
Boddington, Western
Australia (10) 276,900 0.023 6,330
Jundee, Western Australia 4,400 0.29 1,260
Kalgoorlie Open Pits
and Underground 40,100 0.064 2,550
Kalgoorlie Stockpiles (5) 0 0
Total Kalgoorlie, Western
Australia 40,100 0.064 2,550
Martha, New Zealand (11) 4,100 0.14 560
Pajingo, Queensland 700 0.17 130
Tanami Underground and
Open Pits 7,100 0.15 1,060
Tanami Stockpiles (5) 2,600 0.032 80
Total Tanami, Northern
Territories 9,700 0.12 1,140
TOTAL AUSTRALIA/NEW ZEALAND 335,900 0.036 11,970
Batu Hijau, Indonesia
Batu Hijau Open Pit (12) 266,100 0.011 2,960
Batu Hijau
Stockpiles (5) (12) 145,800 0.004 540
TOTAL BATU HIJAU 411,900 0.009 3,500
Ghana, West Africa
Ahafo(13) 163,800 0.078 12,620
Akyem(14) 147,200 0.052 7,660
TOTAL GHANA 311,000 0.065 20,280
Other Operations
Holloway, Ontario (15) 0 0
Kori Kollo, Bolivia 21,500 0.018 390
La Herradura, Mexico 37,500 0.023 850
Zarafshan, Uzbekistan (16) 0 0
TOTAL OTHER OPERATIONS 59,000 0.021 1,240
TOTAL NEWMONT WORLDWIDE 2,284,200 0.033 75,660
Equity Proven, Probable, and Combined Gold Reserves (1)
December 31, 2006
Proven + Probable Reserves
-------------------------------------------------
Metal-
Tonnage Grade Gold lurgical
Deposits/Districts (000 tons) (oz/ton) (000 ozs) Recovery
- ----------------------------------- ---------- ---------- ---------- ----------
Nevada
Carlin Open Pit (2) 271,600 0.042 11,530 74%
Carlin Underground 7,400 0.44 3,260 94%
Lone Tree Complex (3) 0 0
Midas (4) 1,200 0.47 550 95%
Phoenix 295,200 0.027 8,080 75%
Twin Creeks 64,800 0.077 4,980 81%
Turquoise Ridge (5) 2,100 0.54 1,150 90%
Nevada In-Process (6) 45,600 0.024 1,120 66%
Nevada Stockpiles (7) 31,600 0.077 2,440 76%
TOTAL NEVADA 719,500 0.046 33,110 78%
Yanacocha, Peru
Conga (Minas Conga)(8) 317,200 0.019 6,080 79%
Yanacocha Open Pits(9) 277,800 0.030 8,310 68%
Yanacocha In-Process (6) 24,000 0.028 670 71%
TOTAL YANACOCHA 619,000 0.024 15,060 73%
Australia/New Zealand
Boddington, Western
Australia (10) 377,700 0.024 9,090 82%
Jundee, Western Australia 6,900 0.21 1,480 93%
Kalgoorlie Open Pits
and Underground 74,600 0.063 4,670 86%
Kalgoorlie Stockpiles (5) 13,100 0.032 420 79%
Total Kalgoorlie, Western
Australia 87,700 0.058 5,090 85%
Martha, New Zealand (11) 4,100 0.14 560 90%
Pajingo, Queensland 1,300 0.23 300 96%
Tanami Underground and
Open Pits 12,200 0.15 1,860 95%
Tanami Stockpiles (5) 3,000 0.039 120 95%
Total Tanami, Northern
Territories 15,200 0.13 1,980 95%
TOTAL AUSTRALIA/NEW ZEALAND 492,900 0.038 18,500 86%
Batu Hijau, Indonesia
Batu Hijau Open Pit (12) 372,200 0.012 4,500 80%
Batu Hijau
Stockpiles (5) (12) 145,800 0.004 540 67%
TOTAL BATU HIJAU 518,000 0.010 5,040 79%
Ghana, West Africa
Ahafo(13) 163,800 0.078 12,620 87%
Akyem(14) 147,200 0.052 7,660 89%
TOTAL GHANA 311,000 0.065 20,280 88%
Other Operations
Holloway, Ontario (15) 0 0
Kori Kollo, Bolivia 41,800 0.011 470 61%
La Herradura, Mexico 64,500 0.022 1,390 66%
Zarafshan, Uzbekistan (16) 0 0
TOTAL OTHER OPERATIONS 106,300 0.017 1,860 65%
TOTAL NEWMONT WORLDWIDE 2,766,700 0.034 93,850 81%
Equity Proven, Probable, and Combined Gold Reserves (1)
December 31, 2005
Proven + Probable Reserves
------------------------------------------
Tonnage Grade Gold
Deposits/Districts (000 tons) (oz/ton) (000 ozs)
- ------------------------------ ------------ ------------ ------------
Nevada
Carlin Open Pit (2) 238,300 0.043 10,330
Carlin Underground 7,700 0.49 3,750
Lone Tree Complex (3) 4,000 0.080 320
Midas (4) 1,500 0.58 900
Phoenix 308,400 0.029 8,950
Twin Creeks 61,200 0.074 4,520
Turquoise Ridge (5) 1,900 0.56 1,100
Nevada In-Process (6) 48,900 0.023 1,140
Nevada Stockpiles (7) 27,400 0.083 2,260
TOTAL NEVADA 699,300 0.048 33,270
Yanacocha, Peru
Conga (Minas Conga)(8) 317,200 0.019 6,080
Yanacocha Open Pits(9) 294,500 0.033 9,700
Yanacocha In-Process (6) 34,700 0.028 970
TOTAL YANACOCHA 646,400 0.026 16,750
Australia/New Zealand
Boddington, Western
Australia (10) 197,400 0.026 5,160
Jundee, Western Australia 6,600 0.23 1,530
Kalgoorlie Open Pits
and Underground 72,300 0.062 4,480
Kalgoorlie Stockpiles (5) 12,600 0.033 420
Total Kalgoorlie, Western
Australia 84,900 0.058 4,900
Martha, New Zealand (11) 3,500 0.16 570
Pajingo, Queensland 1,600 0.29 450
Tanami Underground and
Open Pits 13,500 0.16 2,220
Tanami Stockpiles (5) 2,600 0.043 110
Total Tanami, Northern
Territories 16,100 0.15 2,330
TOTAL AUSTRALIA/NEW ZEALAND 310,100 0.048 14,940
Batu Hijau, Indonesia
Batu Hijau Open Pit (12) 594,100 0.011 6,310
Batu Hijau
Stockpiles (5) (12) 103,900 0.003 340
TOTAL BATU HIJAU 698,000 0.010 6,650
Ghana, West Africa
Ahafo(13) 156,900 0.078 12,190
Akyem(14) 125,100 0.052 6,510
TOTAL GHANA 282,000 0.066 18,700
Other Operations
Holloway, Ontario (15) 150 0.19 30
Kori Kollo, Bolivia 28,800 0.015 440
La Herradura, Mexico 34,900 0.022 770
Zarafshan, Uzbekistan (16) 46,700 0.036 1,690
TOTAL OTHER OPERATIONS 110,550 0.027 2,930
TOTAL NEWMONT WORLDWIDE 2,746,350 0.034 93,240
(1) Reserves are calculated at a gold price of US$500, A$675, or NZ$750 per
ounce unless otherwise noted. 2005 reserves were calculated at a gold
price of US$400, A$550, or NZ$650 per ounce unless otherwise noted.
Tonnage amounts have been rounded to the nearest 100,000 unless they
are less than 50,000, and gold ounces have been rounded to the nearest
10,000.
(2) Includes undeveloped reserves at Castle Reef, North Lantern and
Emigrant deposits for combined total undeveloped reserves of 1.8
million ounces.
(3) The Lone Tree deposit was mined out in 2006. Processing of stockpiles
and residual leaching is ongoing.
(4) Also contains reserves of 6.8 million ounces of silver with a
metallurgical recovery of 90%.
(5) Reserve estimates provided by Barrick, the operator of the Turquoise
Ridge Joint Venture. Barrick estimated reserves using a gold price of
US$475.
(6) In-process material is the material on leach pads at the end of each
year from which gold remains to be recovered. In-process material
reserves are reported separately where tonnage or contained ounces are
greater than 5% of the total site-reported reserves and contained
ounces are greater than 100,000.
(7) Stockpiles are comprised primarily of material that has been set aside
to allow processing of higher grade material in the mills. Stockpiles
increase or decrease depending on current mine plans. Stockpile
reserves are reported separately where tonnage or contained ounces are
greater than 5% of the total site-reported reserves and contained
ounces are greater than 100,000.
(8) Deposit is currently undeveloped. Models were not updated during 2006.
Therefore, reserves are based on 2005 costs and prices.
(9) Reserves include currently undeveloped deposits at Corimayo and
Chaquicocha Sur, which contain combined undeveloped reserves of 3.2
million equity ounces.
(10) Deposit is currently being developed. Newmont acquired an additional
22.22% equity interest in 2006, which increased Newmont's equity
ownership to 66.67%. Production is expected to begin in 2008.
(11) Includes partially developed reserves of 320,000 ounces at the Favona
deposit.
(12) Percentage reflects Newmont's economic interest in the remaining
reserves.
(13) Deposits are partially developed and milling operations began in 2006.
Includes undeveloped reserves totaling 6.4 million ounces.
(14) Deposit is undeveloped. Newmont's equity ownership in 2005 was 85%.
(15) Mine was closed during 2006 and remaining assets were sold.
(16) Due to a series of unfavorable rulings in Uzbekistan courts beginning
in June 2006, Newmont has discontinued operations at Zarafshan, and its
equity ownership of Zarafshan was effectively expropriated by the
Republic of Uzbekistan. Newmont is currently pursuing legal remedies.
Newmont's ownership in 2005 was 50%.
GOLD NON-RESERVE MINERALIZATION
Equity Gold Mineralized Material Not in Reserves(1)
December 31, 2006
Measured Material Indicated Material
--------------------------- ---------------------------
Newmont Tonnage Grade Tonnage Grade
Deposits/Districts Share (000 tons) (oz/ton) (000 tons) (oz/ton)
- -------------------- ------------ ------------ ------------ ------------ ------------
Nevada
Carlin Trend
Open Pit 100% 3,000 0.051 32,100 0.033
Lone Tree Complex 100% 4,200 0.022 0
Phoenix 100% 0 0.000 92,800 0.017
Twin Creeks 100% 2,100 0.080 22,900 0.056
Total Nevada
Open Pit 9,300 0.045 147,800 0.027
Carlin Trend
Underground 100% 200 0.35 900 0.26
Midas 100% 0 0.00 0 0.00
Turquoise
Ridge (2) 25% 700 0.43 500 0.43
Total Nevada
Underground 900 0.41 1,400 0.32
Nevada
Stockpiles (3) 100% 1,200 0.076
Total Nevada 11,400 0.076 149,200 0.030
Yanacocha, Peru
Conga 51.35% 0 58,000 0.013
La Zanja(4) 46.9% 5,200 0.027 3,800 0.024
Yanacocha 51.35% 400 0.007 82,800 0.027
Total Yanacocha 5,600 0.026 144,600 0.021
Australia/
New Zealand
Boddington,
Western
Australia 66.67% 10,200 0.011 98,200 0.016
Jundee,
Western
Australia 100% 0 800 0.123
Kalgoorlie,
Western
Australia 50% 2,600 0.065 3,200 0.072
Martha,
New Zealand 100% 0 1,800 0.21
Pajingo,
Queensland 100% 0 0.10 100 0.08
Tanami,
Northern
Territory 100% 0 900 0.067
TOTAL AUSTRALIA/
NEW ZEALAND 12,800 0.022 105,000 0.022
Batu Hijau,
Indonesia
Batu Hijau (5) 52.875% 30,600 0.011 131,500 0.008
Martabe(6) 0 0.000 0 0.000
TOTAL BATU HIJAU 30,600 0.011 131,500 0.008
Ghana, West Africa
Ahafo 100% 0 71,300 0.063
Akyem 100% 0 11,600 0.048
TOTAL AFRICA 0 82,900 0.061
Other Operations
and Projects
Holloway,
Ontario (7) 0 0.00 0 0.00
Kori Kollo,
Bolivia 88% 0 0.000 10,700 0.017
La Herradura,
Mexico 44% 6,400 0.021 15,200 0.020
TOTAL OTHER
OPERATIONS AND
PROJECTS 6,400 0.021 25,900 0.019
TOTAL NEWMONT
WORLDWIDE 66,800 0.026 639,100 0.026
Equity Gold Mineralized Material Not in Reserves(1)
December 31, 2006
Measured + Indicated
Material Inferred Material
--------------------------- ---------------------------
Tonnage Grade Tonnage Grade
Deposits/Districts (000 tons) (oz/ton) (000 tons) (oz/ton)
- ------------------------------ ------------ ------------ ------------ ------------
Nevada
Carlin Trend
Open Pit 35,100 0.035 6,300 0.022
Lone Tree Complex 4,200 0.022 0
Phoenix 92,800 0.017 23,200 0.022
Twin Creeks 25,000 0.058 3,100 0.033
Total Nevada
Open Pit 157,100 0.028 32,600 0.023
Carlin Trend
Underground 1,100 0.28 3,000 0.47
Midas 0 0.00 800 0.33
Turquoise
Ridge (2) 1,200 0.43 500 0.49
Total Nevada
Underground 2,300 0.35 4,300 0.45
Nevada
Stockpiles (3) 1,200 0.076
Total Nevada 160,600 0.033 36,900 0.070
Yanacocha, Peru
Conga 58,000 0.013 79,000 0.011
La Zanja(4) 9,000 0.026 0
Yanacocha 83,200 0.027 23,500 0.020
Total Yanacocha 150,200 0.021 102,500 0.013
Australia/
New Zealand
Boddington,
Western
Australia 108,400 0.015 242,400 0.019
Jundee,
Western
Australia 800 0.123 1,700 0.20
Kalgoorlie,
Western
Australia 5,800 0.069 900 0.189
Martha,
New Zealand 1,800 0.21 500 0.30
Pajingo,
Queensland 100 0.08 300 0.15
Tanami,
Northern
Territory 900 0.067 7,000 0.21
TOTAL AUSTRALIA/
NEW ZEALAND 117,800 0.022 252,800 0.027
Batu Hijau,
Indonesia
Batu Hijau (5) 162,100 0.009 48,900 0.003
Martabe(6) 0 0.000 0 0.000
TOTAL BATU HIJAU 162,100 0.009 48,900 0.003
Ghana, West Africa
Ahafo 71,300 0.063 27,600 0.072
Akyem 11,600 0.048 4,600 0.047
TOTAL AFRICA 82,900 0.061 32,200 0.068
Other Operations
and Projects
Holloway,
Ontario (7) 0 0.00 0 0.00
Kori Kollo,
Bolivia 10,700 0.017 0 0.00
La Herradura,
Mexico 21,600 0.020 29,600 0.021
TOTAL OTHER
OPERATIONS AND
PROJECTS 32,300 0.019 29,600 0.021
TOTAL NEWMONT
WORLDWIDE 705,900 0.026 502,900 0.027
(1) Mineralized Material calculated at a gold price of US$550, A$725, or
NZ$850 per ounce unless otherwise noted. 2005 Mineralized material was
calculated at a gold price of US$425, A$600, or NZ$715 per ounce.
Tonnage amounts have been rounded to the nearest 100,000.
(2) Mineralized material estimates were provided by Barrick, the operator of
the Turquoise Ridge Joint Venture. Barrick calculated mineralized
material not in reserves assuming a gold price of US$525 per ounce.
(3) Stockpiles are comprised primarily of material that has been set aside
to allow processing of higher grade material in the mills. Stockpiles
increase or decrease depending on current mine plans.
(4) Mineralized material estimates were provided by Buenaventura, the
operator of the La Zanja Project. Buenaventura calculated mineralized
material at a gold price of US$350 per ounce.
(5) Percentage reflects Newmont's economic interest.
(6) Martabe was sold during 2006.
(7) Holloway was sold during 2006.
COPPER PROVEN AND PROBABLE RESERVES
Equity Copper Reserves(1)
December 31, 2006
Proven Reserve
--------------------------------------------------------
Copper
Newmont Tonnage Grade (million
Deposits/Districts Share (000 tons) (Cu%) pounds)
- ----------------------------------- ----------- ----------- ----------- -----------
Batu Hijau 52.875% 106,100 0.53% 1,120
Batu Hijau, Stockpiles (2) 52.875% 0 0
Total Batu Hijau, Indonesia (3) 52.875% 106,100 0.53% 1,120
Boddington, Western Australia (4) 66.67% 100,800 0.11% 230
Conga, Peru (5) 51.35% 0 0
Phoenix, Nevada 100% 0 0
TOTAL NEWMONT WORLDWIDE 206,900 0.33% 1,350
Equity Copper Reserves(1)
December 31, 2006
Probable Reserve
-------------------------------------------
Copper
Tonnage Grade (million
Deposits/Districts (000 tons) (Cu%) pounds)
- ----------------------------------- ------------ ------------ ------------
Batu Hijau 266,100 0.47% 2,530
Batu Hijau, Stockpiles (2) 145,800 0.37% 1,070
Total Batu Hijau, Indonesia (3) 411,900 0.44% 3,600
Boddington, Western Australia (4) 276,600 0.11% 610
Conga, Peru (5) 317,200 0.26% 1,660
Phoenix, Nevada 296,600 0.13% 770
TOTAL NEWMONT WORLDWIDE 1,302,300 0.25% 6,640
Equity Copper Reserves(1)
December 31, 2006
Proven + Probable Reserve
--------------------------------------------------------
Copper Metal-
Tonnage Grade (million lurgical
Deposits/Districts (000 tons) (Cu%) pounds) Recovery
- ----------------------------------- ----------- ----------- ----------- -----------
Batu Hijau 372,200 0.49% 3,650 85%
Batu Hijau, Stockpiles (2) 145,800 0.37% 1,070 72%
Total Batu Hijau, Indonesia (3) 518,000 0.46% 4,720 82%
Boddington, Western Australia (4) 377,400 0.11% 840 83%
Conga, Peru (5) 317,200 0.26% 1,660 85%
Phoenix, Nevada 296,600 0.13% 770 65%
TOTAL NEWMONT WORLDWIDE 1,509,200 0.26% 7,990 81%
Equity Copper Reserves(1)
December 31, 2005
Proven + Probable Reserve
-------------------------------------------
Copper
Tonnage Grade (million
Deposits/Districts (000 tons) (Cu%) pounds)
- ----------------------------------- ------------ ------------ ------------
Batu Hijau 594,100 0.45% 5,310
Batu Hijau, Stockpiles (2) 103,900 0.36% 750
Total Batu Hijau, Indonesia (3) 698,000 0.43% 6,060
Boddington, Western Australia (4) 197,100 0.12% 480
Conga, Peru (5) 317,200 0.26% 1,660
Phoenix, Nevada 309,900 0.15% 900
TOTAL NEWMONT WORLDWIDE 1,522,200 0.35% 9,100
(1) Reserves are calculated at US$1.25 or A$1.70 per pound copper price
unless otherwise noted. 2005 reserves were calculated at US$1.00 or
A$1.43 per pound copper price unless otherwise noted. Tonnage amounts
have been rounded to the nearest 100,000 and pounds have been rounded to
the nearest 10 million.
(2) Stockpiles are comprised primarily of material that has been set aside
to allow processing of higher grade material. Stockpiles increase or
decrease depending on current mine plans. Stockpiles are reported
separately where tonnage or contained metal are greater than 5% of the
total site reported reserves.
(3) Percentage reflects Newmont's economic interest in remaining reserves.
(4) Deposit currently being developed. Newmont's equity ownership increased
to 66.67% during 2006 after the acquisition of an additional 22.22%
equity interest.
(5) Deposit is undeveloped.
COPPER NON-RESERVE MINERALIZATION
Equity Copper Mineralized Material Not in Reserves(1)
December 31, 2006
Measured Material Indicated Material
---------------------------- ----------------------------
Newmont Tonnage Grade Tonnage Grade
Deposits/Districts Share (000 tons) (Cu%) (000 tons) (Cu%)
- ------------------------- ------------ ------------ ------------ ------------ ------------
Batu Hijau,
Indonesia (2) 52.875% 30,600 0.36% 131,500 0.36%
Boddington,
Western
Australia 66.67% 10,200 0.08% 98,200 0.09%
Conga, Peru 51.35% 0 0.00% 58,000 0.18%
Phoenix, Nevada 100% 0 0.00% 91,300 0.16%
TOTAL NEWMONT
WORLDWIDE 40,800 0.29% 379,000 0.21%
Equity Copper Mineralized Material Not in Reserves(1)
December 31, 2006
Measured + Indicated
Material Inferred Material
--------------------------- ---------------------------
Tonnage Grade Tonnage Grade
Deposits/Districts (000 tons) (Cu%) (000 tons) (Cu%)
- ------------------------- ------------ ------------ ------------ ------------
Batu Hijau,
Indonesia (2) 162,100 0.36% 48,900 0.29%
Boddington,
Western
Australia 108,400 0.09% 242,400 0.10%
Conga, Peru 58,000 0.18% 79,000 0.17%
Phoenix, Nevada 91,300 0.16% 24,200 0.16%
TOTAL NEWMONT
WORLDWIDE 419,800 0.22% 394,500 0.14%
(1) Mineralized material calculated at a copper price of US$1.50 or A$2.00
per pound unless otherwise noted. 2005 mineralized material was
calculated at a copper price of US$1.10 or A$1.47 per pound. Tonnage
amounts have been rounded to the nearest 100,000.
(2) Percentage reflects Newmont's economic interest in remaining mineralized
material.
OPERATING STATISTICS SUMMARY
GOLD Q4 2006 Q4 2005 2006 2005
- ------------------------------------------ ------------ ------------ ------------ ------------
Consolidated ounces sold (000):
Nevada (1) 887.1 651.9 2,534.1 2,444.1
Yanacocha 439.0 1,062.9 2,572.3 3,327.5
Batu Hijau 169.1 180.9 435.3 720.5
Australia/New Zealand
Tanami 116.0 108.2 417.6 493.7
Kalgoorlie 76.1 109.4 332.2 409.6
Jundee 76.1 92.9 305.4 341.8
Pajingo 57.6 51.0 174.6 192.0
Martha 20.7 35.5 120.3 163.4
346.5 397.0 1,350.1 1,600.5
Ahafo 124.8 -- 202.1 --
Other
Golden Giant 1.7 46.0 59.3 162.0
La Herradura 17.9 19.0 79.2 80.2
Kori Kollo 25.3 49.4 128.8 94.5
44.9 114.4 267.3 336.7
2,011.4 2,407.1 7,361.2 8,429.3
Equity ounces sold (000):
Nevada (1) 887.1 606.2 2,427.0 2,287.2
Yanacocha 225.4 545.8 1,320.9 1,708.7
Batu Hijau 89.4 95.7 230.2 381.0
Australia/New Zealand
Tanami 116.0 108.2 417.6 493.7
Kalgoorlie 76.1 109.4 332.2 409.6
Jundee 76.1 92.9 305.4 341.8
Pajingo 57.6 51.0 174.6 192.0
Martha 20.7 35.5 120.3 163.4
346.5 397.0 1,350.1 1,600.5
Ahafo 124.8 -- 202.1 --
Other
Golden Giant 1.7 46.0 59.3 162.0
La Herradura 17.9 19.0 79.2 80.2
Kori Kollo 22.3 43.5 113.3 83.2
41.9 108.5 251.8 325.4
1,715.1 1,753.2 5,782.1 6,302.8
Discontinued operations:
Zarafshan 0.5 29.6 26.0 122.7
Holloway -- 16.0 62.2 67.8
1,715.6 1,798.8 5,870.3 6,493.3
COPPER
Batu Hijau (pounds sold in millions):
Consolidated 146.8 128.7 434.7 572.7
Equity 77.6 68.0 229.9 302.8
(1) Includes 17,400 and 100,300 ounces sold (consolidated and equity) for
the quarter and year ended December 31, 2006, respectively, and 22,100
ounces sold (consolidated and equity) for the quarter and year ended
December 31, 2005, from Phoenix and Leeville start-up activities which
are not included in Revenue, Costs applicable to sales and Depreciation,
depletion and amortization per ounce calculations prior to commencing
operations on October 1, 2006 and October 14, 2006, respectively.
Revenues and costs during start-up are included in Other income, net.
OPERATING STATISTICS - NEVADA (1)
Q4 2006 Q4 2005 2006 2005
------------ ------------ ------------ ------------
Tons mined (000 dry short tons):
Open pit
Ore 12,961 9,512 38,446 34,115
Waste 41,631 40,023 152,992 159,450
Total 54,592 49,535 191,438 193,565
Underground 660 475 1,651 1,727
Tons milled/processed (000 dry short tons):
Mill 6,502 4,188 17,882 15,570
Leach 4,768 5,740 22,138 21,660
Average ore grade (oz/ton):
Mill 0.112 0.153 0.127 0.157
Leach 0.032 0.021 0.026 0.024
Average mill recovery rate 79.8% 84.5% 81.1% 86.0%
Ounces produced (000):
Mill 734.8 514.9 2,059.3 2,060.8
Leach 123.7 79.0 363.8 355.9
Incremental start-up (1) 17.4 22.1 100.3 22.1
Consolidated 875.9 616.0 2,523.4 2,438.8
Equity 875.9 570.2 2,415.8 2,276.7
Ounces sold (000):
Consolidated 887.1 651.9 2,534.1 2,444.1
Equity 887.1 606.2 2,427.0 2,287.2
Production costs (in millions):
Costs applicable to sales $ 316 $ 222 $ 980 $ 807
Depreciation, depletion and
amortization $ 73 $ 32 $ 180 $ 124
Production costs (per ounce sold):
Direct mining and production
costs $ 372 $ 348 $ 404 $ 346
Capitalized mining -- -- -- (20)
By-product credits (22) (6) (15) (7)
Royalties and production taxes 7 7 9 8
Reclamation/accretion expense 2 1 3 2
Other 4 2 2 4
Costs applicable to sales $ 363 $ 352 $ 403 $ 333
Depreciation, depletion and
amortization $ 84 $ 51 $ 74 $ 51
(1) Phoenix and Leeville start-up activities. Revenues and incremental costs
during start-up are included in Other income, net.
OPERATING STATISTICS - YANACOCHA
Q4 2006 Q4 2005 2006 2005
------------ ------------ ------------ ------------
Tons mined (000 dry short tons):
Ore 23,918 35,497 115,795 145,926
Waste 27,990 17,565 101,706 73,007
Total 51,908 53,062 217,501 218,933
Tons processed
(000 dry short tons): 26,666 36,216 118,551 146,645
Average ore grade (oz/ton): 0.016 0.028 0.026 0.028
Ounces produced (000):
Consolidated 456.0 1,064.4 2,612.2 3,333.1
Equity 234.2 546.6 1,341.4 1,711.5
Ounces sold (000):
Consolidated 439.0 1,062.9 2,572.3 3,327.5
Equity 225.4 545.8 1,320.9 1,708.7
Production costs (in millions):
Costs applicable to sales $ 107 $ 154 $ 498 $ 488
Depreciation, depletion and
amortization $ 34 $ 57 $ 172 $ 205
Production costs (per ounce sold):
Direct mining and production
costs $ 255 $ 149 $ 200 $ 150
By-product credits (21) (11) (16) (10)
Royalties and production taxes 5 3 4 3
Reclamation/accretion expense 3 2 3 2
Other 2 2 2 2
Costs applicable to sales $ 244 $ 145 $ 193 $ 147
Depreciation, depletion and
amortization $ 78 $ 53 $ 67 $ 62
OPERATING STATISTICS - BATU HIJAU
Q4 2006 Q4 2005 2006 2005
------------ ------------ ------------ ------------
Tons mined (000 dry short tons)
Ore 21,101 27,533 127,255 83,761
Waste 54,670 24,452 165,904 142,077
Total 75,771 51,985 293,159 225,838
Tons milled
(000 dry short tons): 12,755 11,763 47,026 50,210
Average ore grade:
Gold (oz/ton) 0.017 0.016 0.012 0.018
Copper 0.65% 0.61% 0.55% 0.69%
Average mill recovery rate:
Gold 81.2% 80.6% 79.5% 80.7%
Copper 90.7% 85.0% 87.3% 86.7%
Production:
Gold ounces (000)
Consolidated 175.7 156.9 447.7 731.8
Equity 92.9 82.9 236.7 386.9
Copper pounds (millions)
Consolidated 150.5 120.8 453.7 596.0
Equity 79.6 63.9 239.9 315.1
Sales:
Gold ounces (000)
Consolidated 169.1 180.9 435.3 720.5
Equity 89.4 95.7 230.2 381.0
Copper pounds (millions)
Consolidated 146.8 128.7 434.7 572.7
Equity 77.6 68.0 229.9 302.8
Gold production costs (in millions):
Costs applicable to sales $ 32 $ 29 $ 91 $ 110
Depreciation, depletion and
amortization $ 6 $ 9 $ 20 $ 34
Gold production costs
(per ounce sold):
Direct mining and production
costs $ 188 $ 151 $ 203 $ 145
Capitalized mining -- 4 -- 1
By-product credits (10) (5) (9) (5)
Royalties and production taxes 12 10 13 9
Reclamation/accretion expense 2 2 2 2
Costs applicable to sales $ 192 $ 162 $ 209 $ 152
Depreciation, depletion and
amortization $ 38 $ 47 $ 46 $ 47
Copper production costs (in millions):
Costs applicable to sales $ 94 $ 77 $ 308 $ 304
Depreciation, depletion and
amortization $ 20 $ 21 $ 66 $ 88
Copper production costs
(per pound sold):
Direct mining and production
costs $ 0.58 $ 0.52 $ 0.66 $ 0.47
Capitalized mining -- 0.02 -- --
By-product credits (0.03) (0.03) (0.03) (0.02)
Royalties and production taxes 0.03 0.03 0.02 0.03
Reclamation/accretion expense 0.01 0.01 0.01 0.01
Other 0.05 0.05 0.05 0.04
Costs applicable to sales $ 0.64 $ 0.60 $ 0.71 $ 0.53
Depreciation, depletion and
amortization $ 0.13 $ 0.16 $ 0.15 $ 0.15
OPERATING STATISTICS - PAJINGO AND JUNDEE
PAJINGO Q4 2006 Q4 2005 2006 2005
- ------------------------------------------ ------------ ------------ ------------ ------------
Tons mined (000 dry short tons) 161 147 567 629
Tons milled (000 dry short tons) 317 317 1,133 1,318
Average ore grade (oz/ton) 0.434 0.342 0.331 0.303
Average mill recovery rate 96.3% 96.5% 96.7% 96.6%
Ounces produced (000):
Consolidated 61.2 50.9 177.1 193.0
Equity 61.2 50.9 177.1 193.0
Ounces sold (000):
Consolidated 57.6 51.0 174.6 192.0
Equity 57.6 51.0 174.6 192.0
Production costs (in millions):
Costs applicable to sales $ 16 $ 13 $ 61 $ 58
Depreciation, depletion and
amortization $ 9 $ 6 $ 28 $ 25
Production costs (per ounce sold):
Direct mining and production
costs $ 267 $ 245 $ 341 $ 289
By-product credits (12) (8) (13) (8)
Royalties and production taxes 18 18 17 15
Reclamation/accretion expense 2 2 2 2
Other -- 2 3 3
Costs applicable to sales $ 275 $ 259 $ 350 $ 301
Depreciation, depletion and
amortization $ 158 $ 127 $ 161 $ 130
JUNDEE Q4 2006 Q4 2005 2006 2005
- ------------------------------------------ ------------ ------------ ------------ ------------
Tons mined (000 dry short tons):
Open pit
Ore 177 285 812 1,309
Waste 1,522 1,565 5,810 11,867
Total 1,699 1,850 6,622 13,176
Underground 257 274 1,166 1,132
Tons milled (000 dry short tons) 1,275 1,322 4,921 5,124
Average ore grade (oz/ton) 0.139 0.157 0.136 0.145
Average mill recovery rate 92.8% 92.5% 92.3% 92.2%
Ounces produced (000):
Consolidated 82.8 92.2 313.0 341.6
Equity 82.8 92.2 313.0 341.6
Ounces sold (000):
Consolidated 76.1 92.9 305.4 341.8
Equity 76.1 92.9 305.4 341.8
Production costs (in millions):
Costs applicable to sales $ 28 $ 26 $ 113 $ 115
Depreciation, depletion and
amortization $ 8 $ 8 $ 26 $ 26
Production costs (per ounce sold):
Direct mining and production
costs $ 354 $ 261 $ 345 $ 315
By-product credits (2) (1) (2) (1)
Royalties and production taxes 17 12 16 11
Reclamation/accretion expense 5 4 5 4
Other -- -- 5 6
Costs applicable to sales $ 374 $ 276 $ 369 $ 335
Depreciation, depletion and
amortization $ 110 $ 83 $ 85 $ 80
OPERATING STATISTICS - TANAMI AND KALGOORLIE
TANAMI Q4 2006 Q4 2005 2006 2005
- ------------------------------------------ ------------ ------------ ------------ ------------
Tons mined (000 dry short tons) 539 504 2,136 2,049
Tons milled (000 dry short tons) 1,613 1,546 6,301 8,162
Average ore grade (oz/ton) 0.167 0.146 0.144 0.125
Average mill recovery rate 95.5% 94.6% 95.2% 94.8%
Ounces produced (000):
Consolidated 129.2 107.3 430.7 487.5
Equity 129.2 107.3 430.7 487.5
Ounces sold (000):
Consolidated 116.0 108.2 417.6 493.7
Equity 116.0 108.2 417.6 493.7
Production costs (in millions):
Costs applicable to sales $ 42 $ 37 $ 155 $ 162
Depreciation, depletion and
amortization $ 9 $ 8 $ 30 $ 33
Production costs (per ounce sold):
Direct mining and production
costs $ 295 $ 309 314 $ 301
By-product credits (1) (1) (1) (1)
Royalties and production taxes 63 28 54 20
Reclamation/accretion expense 3 4 3 4
Other -- 4 -- 4
Costs applicable to sales $ 360 $ 344 $ 370 $ 328
Depreciation, depletion and
amortization $ 76 $ 77 $ 72 $ 67
KALGOORLIE Q4 2006 Q4 2005 2006 2005
- ------------------------------------------ ------------ ------------ ------------ ------------
Tons mined (000 dry short tons):
Open pit
Ore 1,715 1,506 7,037 7,306
Waste 9,267 10,213 38,687 38,084
Total 10,982 11,719 45,724 45,390
Underground 51 53 207 213
Tons milled (000 dry short tons) 3,266 3,537 12,868 14,627
Average ore grade (oz/ton) 0.057 0.057 0.062 0.067
Average mill recovery rate 85.3% 81.7% 84.6% 85.6%
Ounces produced (000):
Consolidated 87.3 109.5 342.5 409.4
Equity 87.3 109.5 342.5 409.4
Ounces sold (000):
Consolidated 76.1 109.4 332.2 409.6
Equity 76.1 109.4 332.2 409.6
Production costs (in millions):
Costs applicable to sales $ 41 $ 42 $ 163 $ 144
Depreciation, depletion and
amortization $ 6 $ 5 $ 25 $ 17
Production costs (per ounce sold):
Direct mining and production
costs $ 512 $ 453 $ 470 $ 363
Capitalized mining -- (80) -- (23)
By-product credits (3) (2) (3) (2)
Royalties and production taxes 18 7 16 11
Reclamation/accretion expense 7 3 6 3
Other 5 -- 1 --
Costs applicable to sales $ 539 $ 381 $ 490 $ 352
Depreciation, depletion and
amortization $ 83 $ 49 $ 76 $ 42
OPERATING STATISTICS - MARTHA AND AHAFO
MARTHA Q4 2006 Q4 2005 2006 2005
- ------------------------------------------ ------------ ------------ ------------ ------------
Tons mined (000 dry short tons):
Open pit
Ore 45 347 890 1,225
Waste 826 187 987 900
Total 871 534 1,877 2,125
Underground 86 -- 149 --
Tons milled (000 dry short tons) 353 636 2,049 2,554
Average ore grade (oz/ton) 0.181 0.129 0.135 0.140
Average mill recovery rate 86.4% 93.6% 91.9% 93.0%
Ounces produced (000):
Consolidated 28.6 34.6 129.7 163.5
Equity 28.6 34.6 129.7 163.5
Ounces sold (000):
Consolidated 20.7 35.5 120.3 163.4
Equity 20.7 35.5 120.3 163.4
Production costs (in millions):
Costs applicable to sales $ 7 $ 7 $ 27 $ 29
Depreciation, depletion and
amortization $ 1 $ 3 $ 10 $ 16
Production costs (per ounce sold):
Direct mining and production
costs $ 404 $ 256 $ 294 $ 229
Capitalized mining -- 15 -- 12
By-product credits (74) (70) (79) (67)
Royalties and production taxes 3 -- 1 --
Reclamation/accretion expense 10 3 7 3
Costs applicable to sales $ 343 $ 204 $ 223 $ 177
Depreciation, depletion and
amortization $ 36 $ 96 $ 83 $ 97
AHAFO Q4 2006 Q4 2005 2006 2005
- ------------------------------------------ ------------ ------------ ------------ ------------
Tons mined (000 dry short tons):
Open pit
Ore 2,596 -- 5,007 --
Waste 8,422 -- 14,992 --
Total 11,018 -- 19,999 --
Tons milled (000 dry short tons) 4,342 -- 7,031 --
Average ore grade (oz/ton) 0.068 -- 0.065 --
Average mill recovery rate 86.7% -- 88.3% --
Ounces produced (000):
Consolidated 119.1 -- 197.0 --
Equity 119.1 -- 197.0 --
Ounces sold (000):
Consolidated 124.8 -- 202.1 --
Equity 124.8 -- 202.1 --
Production costs (in millions):
Costs applicable to sales $ 41 -- $ 60 --
Depreciation, depletion and
amortization $ 13 -- $ 19 --
Production costs (per ounce sold): -- --
Direct mining and production
costs $ 306 -- $ 277 --
By-product credits (1) -- (1) --
Royalties and production taxes 18 -- 18 --
Reclamation/accretion expense 1 -- 1 --
Other 2 -- 2 --
Costs applicable to sales $ 326 -- $ 297 --
Depreciation, depletion and
amortization $ 102 -- $ 95 --
OPERATING STATISTICS - GOLDEN GIANT AND LA HERRADURA
GOLDEN GIANT Q4 2006 Q4 2005 2006 2005
- ------------------------------------------ ------------ ------------ ------------ ------------
Tons mined (000 dry short tons) -- 172 13 576
Tons milled (000 dry short tons) -- 351 35 1,162
Average ore grade (oz/ton) -- 0.309 0.627 0.298
Average mill recovery rate -- 95.2% 96.9% 95.7%
Ounces produced (000):
Consolidated 1.7 45.9 59.2 161.8
Equity 1.7 45.9 59.2 161.8
Ounces sold (000):
Consolidated 1.7 46.0 59.3 162.0
Equity 1.7 46.0 59.3 162.0
Production costs (in millions):
Costs applicable to sales $ -- $ 13 $ 13 $ 48
Depreciation, depletion and
amortization $ -- $ 3 $ 1 $ 11
Production costs (per ounce sold):
Direct mining and production
costs $ -- $ 271 $ 201 $ 290
By-product credits -- -- (1) --
Royalties and production taxes -- 1 -- 1
Reclamation/accretion expense -- 3 14 3
Other -- 2 -- 2
Costs applicable to sales $ -- $ 277 $ 214 $ 296
Depreciation, depletion and
amortization $ -- $ 54 $ 10 $ 67
LA HERRADURA Q4 2006 Q4 2005 2006 2005
- ------------------------------------------ ------------ ------------ ------------ ------------
Tons mined (000 dry short tons):
Ore 1,219 717 4,263 3,510
Waste 3,902 2,321 13,926 9,670
Total 5,121 3,038 18,189 13,180
Tons processed
(000 dry short tons) 1,219 717 4,263 3,510
Average ore grade (oz/ton) 0.024 0.031 0.023 0.029
Ounces produced (000):
Consolidated 24.4 19.0 79.2 80.2
Equity 24.4 19.0 79.2 80.2
Ounces sold (000):
Consolidated 17.9 19.0 79.2 80.2
Equity 17.9 19.0 79.2 80.2
Production costs (in millions):
Costs applicable to sales $ 5 $ 4 $ 20 $ 15
Depreciation, depletion and
amortization $ 2 $ 2 $ 9 $ 5
Production costs (per ounce sold):
Direct mining and production
costs $ 264 $ 263 $ 251 $ 212
Capitalized mining -- (43) -- (31)
By-product credits (25) (2) (10) (1)
Royalties and production taxes -- -- -- --
Reclamation/accretion expense 12 2 4 2
Other 3 3 3 2
Costs applicable to sales $ 254 $ 223 $ 248 $ 184
Depreciation, depletion and
amortization $ 129 $ 80 $ 114 $ 63
OPERATING STATISTICS - KORI KOLLO
Q4 2006 Q4 2005 2006 2005
------------ ------------ ------------ ------------
Tons mined (000 dry short tons):
Ore 1,920 4,391 9,516 12,712
Waste 4,317 914 14,294 1,343
Total 6,237 5,305 23,810 14,055
Tons processed
(000 dry short tons) 1,920 4,391 9,516 12,712
Average ore grade (oz/ton) 0.021 0.014 0.021 0.013
Ounces produced (000):
Consolidated 25.1 46.6 129.0 97.4
Equity 22.1 41.0 113.5 85.7
Ounces sold (000):
Consolidated 25.3 49.4 128.8 94.5
Equity 22.3 43.5 113.3 83.2
Production costs (in millions):
Costs applicable to sales $ 8 $ 7 $ 27 $ 16
Depreciation, depletion and
amortization $ 2 $ 2 $ 9 $ 4
Production costs (per ounce sold):
Direct mining and production
costs $ 310 $ 120 $ 213 $ 140
By-product credits (25) (7) (17) (11)
Royalties and production taxes -- 23 -- 21
Reclamation/accretion expense 12 7 10 14
Other 4 2 4 3
Costs applicable to sales $ 301 $ 145 $ 210 $ 167
Depreciation, depletion and
amortization $ 92 $ 47 $ 68 $ 40
GOLD DERIVATIVE POSITION (December 31, 2006)
MATURITY SUMMARY (1), (2) (000 Ounces)
Put Option Price Capped
Contracts Contracts
----------------------- -----------------------
Year Ounces Price (2) Ounces Price (2)
- -------------------- ---------- ---------- ---------- ----------
2007 20 397 -- --
2008 -- -- 1,000 384
2009 -- -- 600 381
2010 -- -- -- --
Thereafter -- -- 250 392
Total/Average 20 $ 397 1,850 $ 384
The Company's fourth quarter earnings conference call and web cast
presentation will be held on February 22, 2007 beginning at 4:00 p.m. Eastern
Time (2:00 p.m. Mountain Time). To participate:
Dial-In Number: 210.795.2680
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.
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/A, filed October 26,
2006, 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- 02/22/2007
/CONTACT: Randy Engel, +1-303-837-6033, randy.engel@newmont.com, or
Stephen Gottesfeld, +1-303-837-5737, stephen.gottesfeld@newmont.com, both of
Newmont Mining Corporation/
/First Call Analyst: /
/FCMN Contact: joy.shults@newmont.com /
/Web site: http://www.newmont.com/