Newmont Generates First Quarter 2010 Operating Cash Flow of $728 Million;
Adjusted Net Income(1) of $408 million, up 105% from First Quarter 2009
This release should be read in conjunction with Newmont's First Quarter
2010 Form 10-Q filed with the Securities and Exchange Commission on April
27, 2010 (available at www.newmont.com).
</pre>
<p><span class="xn-location">DENVER</span>, <span class="xn-chron">April 27</span> /CNW/ -- Newmont Mining Corporation (NYSE: NEM) ("Newmont" or the "Company") today announced first quarter results, with net cash from continuing operations of <span class="xn-money">$728 million</span>. Equity gold production for the quarter was 1.3 million ounces and the average realized gold price was <span class="xn-money">$1,106</span> per ounce. Costs applicable to sales for gold were <span class="xn-money">$480</span> per ounce on a co-product basis, resulting in adjusted net income(1) of <span class="xn-money">$408 million</span> (<span class="xn-money">$0.83</span> per share) compared to <span class="xn-money">$199 million</span> (<span class="xn-money">$0.42</span> per share) in the prior year quarter. Net income attributable to Newmont stockholders on a GAAP basis was <span class="xn-money">$546 million</span> (<span class="xn-money">$1.11</span> per share) compared to <span class="xn-money">$189 million</span> (<span class="xn-money">$0.40</span> per share) in the prior year quarter.</p>
<pre>
First Quarter 2010 Highlights:
-- Equity gold and copper production of 1.3 million ounces and 90 million
pounds, respectively;
-- Average realized gold and copper price of $1,106 per ounce and $3.33
per pound, respectively;
-- Costs applicable to sales for gold and copper of $480 per ounce on a
co-product basis ($241 on a by-product basis) and $0.78 per pound,
respectively;
-- Sales of $2.2 billion, an increase of 46% over the first quarter of
2009;
-- Gold operating margin(2) of 57%, up from 52% in the first quarter of
2009;
-- Net cash provided from continuing operations of $728 million, up 91%
from the first quarter of 2009;
-- Adjusted net income(1) of $408 million ($0.83 per share), up 105% (98%
on a per share basis) from the first quarter of 2009; and
-- Maintaining 2010 outlook for gold production, costs applicable to
sales
and capital expenditures.
</pre>
<p>"With a 22% increase in our average realized gold price, our net gold operating margin expanded by 32% to <span class="xn-money">$626</span> per ounce, further demonstrating our ability to provide significant gold price leverage through expanding cash operating margins," said Richard O'Brien, President and Chief Executive Officer. "We also recently secured the mining lease for our Akyem project in <span class="xn-location">Ghana</span> and continue our dialogue with local communities and Ghanaian authorities. In addition, we are advancing our development plans at Conga in <span class="xn-location">Peru</span> following a successful public meeting with local stakeholders. The strength of our balance sheet coupled with the progress being made on our advanced development assets, Newmont is well positioned to invest in our project pipeline while maintaining our financial strength and flexibility."</p>
<p/>
<p>The Company is maintaining its previously announced 2010 outlook for equity gold production of 5.3 to 5.5 million ounces and costs applicable to sales of between <span class="xn-money">$450</span> and <span class="xn-money">$480</span> per ounce on a co-product basis. Costs applicable to sales are expected to change by approximately <span class="xn-money">$5</span> per ounce for every <span class="xn-money">$10</span> change in the oil price and by roughly <span class="xn-money">$5</span> per ounce for every 0.10 change in the Australian dollar exchange rate for the remainder of the year.</p>
<pre>
Regional Operations
</pre>
<p>In the first quarter of 2010, the Company reported equity gold production of 1.3 million ounces at costs applicable to sales of <span class="xn-money">$480</span> per ounce on a co-product basis, in line with management's expectations. Costs applicable to sales per gold ounce increased 11% in the first quarter of 2010 from 2009 due to higher mining and milling costs and lower production in Nevada and at Yanacocha in <span class="xn-location">Peru</span>.</p>
<pre>
North America
</pre>
<p>Nevada - Nevada produced 433,000 equity ounces of gold at costs applicable to sales of <span class="xn-money">$610</span> per ounce during the first quarter. Equity gold production met expectations and costs applicable to sales were slightly higher than expected due to lower by-product credits, higher underground mining costs and higher production taxes. Gold ounces produced decreased 16% in the first quarter of 2010 from 2009 due to lower grade, throughput and recovery. Costs applicable to sales per ounce increased 20% in the first quarter of 2010 from 2009 due to lower production and higher surface mining costs related to geotechnical issues at Gold Quarry and lower capitalized mine development activities.</p>
<p/>
<p>The Company continues to expect 2010 equity gold production from Nevada of approximately 1.6 to 1.7 million ounces at costs applicable to sales of between <span class="xn-money">$590</span> and <span class="xn-money">$630</span> per ounce.</p>
<p/>
<p>La Herradura - Equity gold production at La Herradura in <span class="xn-location">Mexico</span> during the first quarter was 40,000 ounces at costs applicable to sales of <span class="xn-money">$344</span> per ounce. Equity gold production was slightly higher than expected and costs applicable to sales were lower than expected due to higher leach placement and production from the new Soledad and Dipolos deposits. Gold ounces produced increased 60% in the first quarter of 2010 from 2009 due to the commencement of production from the Soledad and Dipolos pits in <span class="xn-chron">January 2010</span>. Costs applicable to sales per ounce decreased 11% in the first quarter of 2010 from 2009 due to higher production.</p>
<p/>
<p>The Company expects La Herradura equity gold production to reach 140,000 to 150,000 ounces in 2010 with costs applicable to sales of between <span class="xn-money">$400</span> and <span class="xn-money">$430</span> per ounce.</p>
<pre>
South America
</pre>
<p>Yanacocha - Equity gold production during the first quarter at Yanacocha in <span class="xn-location">Peru</span> was 217,000 ounces at costs applicable to sales of <span class="xn-money">$372</span> per ounce. Equity gold production was lower than expected due to lower leach production partially offset by higher mill production. Costs applicable to sales were higher than expected due to higher milling costs, lower leach production, higher royalties and lower by-product credits. Gold ounces produced decreased 15% in the first quarter of 2010 from 2009 due to lower mill grade and recovery combined with lower leach tons placed related to mine sequencing. Costs applicable to sales per ounce increased 15% in the first quarter of 2010 from 2009 due to lower production, higher waste mining and higher costs related to maintenance, workers' participation and royalties.</p>
<p/>
<p>The Company continues to expect 2010 equity gold production at Yanacocha of between 750,000 and 810,000 ounces at costs applicable to sales of between <span class="xn-money">$360</span> and <span class="xn-money">$400</span> per ounce.</p>
<pre>
Asia Pacific
</pre>
<p>Boddington - As the Company continues to ramp-up to full production at Boddington, equity gold and copper production during the first quarter was 158,000 ounces and 14 million pounds, respectively, at costs applicable to sales of <span class="xn-money">$532</span> per ounce (<span class="xn-money">$436</span> per ounce on a by-product basis(3)) and <span class="xn-money">$2.15</span> per pound.</p>
<p/>
<p>The Company continues to expect 2010 equity gold production at Boddington of 800,000 to 875,000 ounces with costs applicable to sales of <span class="xn-money">$375 to $395</span> per ounce on a co-product basis (<span class="xn-money">$295 to $315</span> per ounce on a by-product basis) and 2010 equity copper production of 65 to 75 million pounds at costs applicable to sales of between <span class="xn-money">$1.30</span> and <span class="xn-money">$1.45</span> per pound.</p>
<p/>
<p>Batu Hijau - Equity gold and copper production during the first quarter at Batu Hijau in <span class="xn-location">Indonesia</span> were 88,000 ounces and 76 million pounds, respectively, at costs applicable to sales of <span class="xn-money">$215</span> per ounce and <span class="xn-money">$0.67</span> per pound, respectively. Equity gold and copper production were in line with expectations and costs applicable to sales were slightly better than expected due to lower mining costs and a lower allocation of costs to gold. Copper and gold produced increased 79% and 181% in the first quarter of 2010 from 2009, respectively, due to higher throughput and grade as a result of mining in the bottom of Phase 5. Costs applicable to sales decreased 25% and 47% for copper and gold, respectively, in the first quarter of 2010 from 2009 due to higher production and lower mining costs.</p>
<p/>
<p>The Company expects 2010 equity gold and copper production at Batu Hijau to decrease to between 365,000 and 400,000 ounces, and to between 270 and 295 million pounds, respectively, due to the 2009 7% share divestiture completed in <span class="xn-chron">March 2010</span>. The Company's current economic interest at Batu Hijau is 48.5%. The Company continues to expect 2010 costs applicable to sales of between <span class="xn-money">$265</span> and <span class="xn-money">$285</span> per ounce and <span class="xn-money">$0.75</span> and <span class="xn-money">$0.85</span> per pound.</p>
<p/>
<p>Other Australia/New Zealand - Equity gold production during the first quarter was 276,000 ounces at costs applicable to sales of <span class="xn-money">$558</span> per ounce. Equity gold production was in line with expectations as higher production at Kalgoorlie was offset by lower production at Tanami. Costs applicable to sales were slightly higher than expected due to the stronger Australian dollar. Gold ounces produced decreased 10% in the first quarter of 2010 from 2009, due to lower production at Tanami, Jundee and Waihi, partially offset by increased production at Kalgoorlie. Production decreased due to lower grade at Tamami, Jundee and Waihi and lower throughput as a result of mill maintenance at Tanami. Production increased at Kalgoorlie due to higher grade and throughput. Costs applicable to sales per ounce increased 13% in the first quarter of 2010 from 2009 due to lower production and the stronger Australian dollar.</p>
<p/>
<p>The Company continues to expect 2010 equity gold production at the Company's other Australia/New Zealand operations of between 1.06 and 1.16 million ounces at costs applicable to sales of <span class="xn-money">$530 to $570</span> per ounce.</p>
<pre>
Africa
</pre>
<p>Ahafo - Equity gold production during the first quarter at Ahafo in <span class="xn-location">Ghana</span> was 120,000 ounces at costs applicable to sales of <span class="xn-money">$542</span> per ounce, in line with expectations. Gold ounces produced decreased 8% in the first quarter of 2010 from 2009 due to lower grade and recovery, partially offset by higher throughput. Costs applicable to sales per ounce increased 36% in the first quarter of 2010 from 2009 due to lower production and higher labor and fuel costs.</p>
<p/>
<p>The Company continues to expect 2010 equity gold production at Ahafo of between 460,000 and 500,000 ounces at costs applicable to sales of <span class="xn-money">$515 to $555</span> per ounce.</p>
<pre>
Capital Update
</pre>
<p>Consolidated capital expenditures were <span class="xn-money">$309 million</span> during the first quarter. The Company is maintaining its 2010 consolidated capital expenditure outlook of between <span class="xn-money">$1.4</span> and <span class="xn-money">$1.6 billion</span> with approximately 30% to be invested in each of the <span class="xn-location">North America</span> and Asia Pacific regions, and the remaining 40% at other locations. Approximately 40% of 2010 consolidated capital expenditures is expected to be related to major project initiatives, including further development of the Company's Akyem project in <span class="xn-location">Ghana</span>, the Conga project in <span class="xn-location">Peru</span>, <span class="xn-person">Hope Bay</span> in <span class="xn-location">Canada</span> and other projects, while the remaining 60% is expected to be for maintenance and sustaining expenditures.</p>
<pre>
Updated 2010 Outlook(4)
</pre>
<p>In addition to the minor production outlook adjustments related to the recent Batu Hijau share divestiture, the Company is increasing outlook for Advanced Products and R&D spending to <span class="xn-money">$230 to $250 million</span>. The increase is primarily related to higher anticipated spending at <span class="xn-person">Hope Bay</span> as preparations are being made to develop the decline in the second half of 2010.</p>
<pre>
</pre>
<p> </p>
<p> </p>
<pre>
Description Q1 Update 2010 Original
----------- --------- -------------
Equity gold production (Kozs) 5,300 - 5,500 5,300 - 5,500
----------------------------- ------------- -------------
Costs applicable to sales -Gold
($/oz) $450 - $480 $450 - $480
------------------------------- ----------- -----------
Equity copper production (Mlbs) 330 - 360 350 - 380
------------------------------- --------- ---------
Costs applicable to sales -Copper
($/lb) $0.85 - $0.95 $0.85 - $0.95
---------------------------------- ------------- -------------
Capital expenditures ($M) $1,400 - $1,600 $1,400 - $1,600
------------------------- --------------- ---------------
Amortization ($M) $970 - $1,000 $940 - $970
----------------- ------------- -----------
Exploration ($M) $190 - $220 $190 - $220
---------------- ----------- -----------
Advanced projects, research and
development ($M) $230 - $250 $185 - $210
------------------------------- ----------- -----------
General & administrative ($M) $160 - $170 $160 - $170
----------------------------- ----------- -----------
Interest expense, net of capitalized
interest ($M) $270 - $290 $270 - $290
------------------------------------ ----------- -----------
Effective tax rate 24% - 28% 28% - 32%
------------------ --------- ---------
Assumptions
-----------
Oil price ($/bbl) $80 $80
----------------- --- ---
Australian dollar exchange rate 0.90 0.80
------------------------------- ---- ----
Gold price ($/oz) $1,100 $900
----------------- ------ ----
Copper price ($/lb) $3.00 $2.50
------------------- ----- -----
</pre>
<p> </p>
<pre>
(4) All references to expected production and outlook guidance are
based on current mine plans, assumptions and current geotechnical,
metallurgical, hydrological and other physical conditions. See
"Cautionary Statement" on page 12.
</pre>
<p> </p>
<p> Condensed Statements of Consolidated Income</p>
<p> </p>
<pre>
Three Months Ended
March 31,
---------
2010 2009
---- ----
(unaudited, in millions, except
per share)
</pre>
<p> </p>
<p>Sales <span class="xn-money">$2,242</span> <span class="xn-money">$1,536</span></p>
<p> </p>
<pre>
Costs and expenses
Costs applicable to sales (1) 875 739
Amortization 224 191
Reclamation and remediation 13 12
Exploration 43 41
Advanced projects, research and
development 46 31
General and administrative 45 39
Other expense, net 89 73
--- ---
1,335 1,126
----- -----
Other income (expense)
Other income, net 48 9
Interest expense, net (75) (32)
--- ---
(27) (23)
--- ---
Income before income tax and other items 880 387
Income tax expense (135) (105)
Equity loss of affiliates (2) (5)
--- ---
Net income 743 277
Net income attributable to noncontrolling
interests (197) (88)
---- ---
Net income attributable to Newmont
stockholders $546 $189
==== ====
</pre>
<p> </p>
<p>Income per common share, basic and diluted <span class="xn-money">$1.11</span> <span class="xn-money">$0.40</span></p>
<p> </p>
<p>Cash dividends declared per common share <span class="xn-money">$0.10</span> <span class="xn-money">$0.10</span></p>
<p> </p>
<pre>
(1) Exclusive of Amortization and Reclamation and remediation
</pre>
<p>The Company's financial statements can be found on its website at <a href="http://www.newmont.com">www.newmont.com</a>.</p>
<pre>
</pre>
<p> </p>
<p> Condensed Statements of Cash Flow</p>
<p> </p>
<pre>
Three Months Ended March
31,
-------------------------
2010 2009
---- ----
(unaudited, in millions)
Operating activities:
Net income $743 $277
Adjustments:
Amortization 224 191
Reclamation and remediation 13 12
Deferred income taxes (102) (19)
Stock based compensation and other
benefits 18 14
Other operating adjustments and write-
downs 5 36
Net change in operating assets and
liabilities (173) (130)
---- ----
Net cash provided from continuing
operations 728 381
Net cash provided from (used in)
discontinued operations (13) 4
--- ---
Net cash provided from operations 715 385
--- ---
Investing activities:
Additions to property, plant and mine
development (309) (330)
Investments in marketable debt and equity
securities (3) -
Acquisitions, net - (11)
Proceeds from sale of other assets 38 -
Other (11) (13)
--- ---
Net cash used in investing activities (285) (354)
---- ----
Financing activities:
Proceeds from debt, net - 1,369
Repayment of debt (250) (1,589)
Sale of subsidiary shares to
noncontrolling interests 229 -
Acquisition of subsidiary shares from
noncontrolling interests (39) -
Dividends paid to common stockholders (49) (49)
Dividends paid to noncontrolling interests (220) -
Proceeds from stock issuance, net 3 1,239
Change in restricted cash and other 46 13
--- ---
Net cash provided from (used in) financing
activities of continuing operations (280) 983
Net cash used in financing activities of
discontinued operations - (1)
--- ---
Net cash provided from (used in) financing
activities (280) 982
Effect of exchange rate changes on cash (1) 1
--- ---
Net change in cash and cash equivalents 149 1,014
Cash and cash equivalents at beginning of
period 3,215 435
----- ---
</pre>
<p> </p>
<pre>
Cash and cash equivalents at end of period $3,364 $1,449
====== ======
</pre>
<p>The Company's financial statements can be found on its website at <a href="http://www.newmont.com">www.newmont.com</a>.</p>
<pre>
</pre>
<p> </p>
<p> Condensed Consolidated Balance Sheets</p>
<p> </p>
<pre>
At December
At March 31, 31,
2010 2009
(unaudited, in millions)
ASSETS
Cash and cash equivalents $3,364 $3,215
Trade receivables 491 438
Accounts receivable 110 102
Investments 73 56
Inventories 501 493
Stockpiles and ore on leach pads 470 403
Deferred income tax assets 229 215
Other current assets 723 900
--- ---
Current assets 5,961 5,822
Property, plant and mine
development, net 12,456 12,370
Investments 1,232 1,186
Stockpiles and ore on leach pads 1,519 1,502
Deferred income tax assets 1,030 937
Other long-term assets 447 482
Total assets $22,645 $22,299
======= =======
LIABILITIES
Current portion of debt $78 $157
Accounts payable 356 396
Employee-related benefits 179 250
Income and mining taxes 280 200
Other current liabilities 1,120 1,317
----- -----
Current liabilities 2,013 2,320
Debt 4,496 4,652
Reclamation and remediation
liabilities 810 805
Deferred income tax liabilities 1,370 1,341
Employee-related benefits 395 381
Other long-term liabilities 156 174
Liabilities of operations held for
sale - 13
--- ---
Total liabilities 9,240 9,686
----- -----
Commitments and contingencies
EQUITY
Common stock 773 770
Additional paid-in capital 8,188 8,158
Accumulated other comprehensive
income 743 626
Retained earnings 1,646 1,149
----- -----
Newmont stockholders' equity 11,350 10,703
Noncontrolling interests 2,055 1,910
----- -----
Total equity 13,405 12,613
------ ------
Total liabilities and equity $22,645 $22,299
======= =======
</pre>
<p>The Company's financial statements can be found on its website at <a href="http://www.newmont.com">www.newmont.com</a>.</p>
<pre>
</pre>
<p> </p>
<p>Production Statistics</p>
<p> </p>
<pre>
Three Months Ended March 31,
----------------------------
2010 2009
--- ---
Gold
----
Consolidated ounces produced
(thousands):
North America
Nevada 433 518
La Herradura 40 25
473 543
--- ---
South America
Yanacocha 423 499
</pre>
<p> </p>
<pre>
Asia Pacific
Boddington 158 -
Batu Hijau 166 59
Other
Jundee 92 102
Kalgoorlie 104 76
Tanami 53 89
Waihi 27 39
276 306
--- ---
600 365
--- ---
Africa
Ahafo 120 130
1,616 1,537
===== =====
</pre>
<p> </p>
<pre>
Copper
------
Consolidated pounds produced
(millions):
Asia Pacific
Boddington 14 -
Batu Hijau 145 81
159 81
=== ===
</pre>
<p> </p>
<pre>
Gold
----
Equity ounces produced (thousands):
North America
Nevada 433 518
La Herradura 40 25
473 543
--- ---
South America
Yanacocha 217 256
</pre>
<p> </p>
<pre>
Asia Pacific
Boddington 158 -
Batu Hijau 88 26
Other
Jundee 92 102
Kalgoorlie 104 76
Tanami 53 89
Waihi 27 39
276 306
--- ---
522 332
--- ---
Africa
Ahafo 120 130
1,332 1,261
----- -----
Discontinued Operations
Kori Kollo - 15
1,332 1,276
===== =====
</pre>
<p> </p>
<pre>
Copper
------
Equity pounds produced (millions):
Asia Pacific
Boddington 14 -
Batu Hijau 76 37
90 37
=== ===
</pre>
<p> </p>
<p> </p>
<p> </p>
<pre>
Three Months Ended March 31,
----------------------------
2010 2009
--- ---
Gold
----
Costs Applicable to Sales ($/ounce)
(1)
North America
Nevada $610 $509
La Herradura 344 387
--- ---
587 503
--- ---
South America
Yanacocha 372 324
</pre>
<p> </p>
<pre>
Asia Pacific
Boddington 532 -
Batu Hijau 215 406
Other
Jundee 386 353
Kalgoorlie 539 643
Tanami 844 574
Waihi 655 367
558 492
--- ---
459 476
--- ---
Africa
Ahafo 542 399
--- ---
Average $480 $431
==== ====
</pre>
<p> </p>
<pre>
Copper
------
Costs Applicable to Sales ($/pound)
(1)
Asia Pacific
Boddington $2.15 $-
Batu Hijau 0.67 0.89
Average $0.78 $0.89
===== =====
</pre>
<p> </p>
<p> </p>
<pre>
Three Months Ended March 31,
----------------------------
2010 2009
--- ---
Consolidated Capital Expenditures
($ million)
North America
Nevada $48 $53
Hope Bay 9 1
La Herradura 14 9
71 63
--- ---
South America
Yanacocha 40 27
Conga 17 6
57 33
--- ---
</pre>
<p> </p>
<pre>
Asia Pacific
Boddington 48 216
Jundee 10 5
Tanami 19 10
Kalgoorlie 4 2
Waihi 3 1
Batu Hijau 28 6
Other Asia Pacific 2 1
114 241
--- ---
Africa
Ahafo 21 9
Akyem 6 1
27 10
Corporate and Other 3 3
--- ---
Total - Accrual Basis 272 350
--- ---
</pre>
<p> </p>
<p> Change in Capital Accrual 37 (20)</p>
<p> </p>
<pre>
Total - Cash Basis $309 $330
==== ====
</pre>
<p> </p>
<pre>
(1) Excludes Amortization and Reclamation.
Supplemental Information
Non-GAAP Financial Measures
</pre>
<p>Non-GAAP financial measures are intended to provide additional information only and do not have any standard meaning prescribed by generally accepted accounting principles ("GAAP"). These measures should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP.</p>
<pre>
Reconciliation of Adjusted Net Income to GAAP Net Income
</pre>
<p>Management of the Company uses the non-GAAP financial measure Adjusted net income to evaluate the Company's operating performance, and for planning and forecasting future business operations. The Company believes the use of Adjusted net income allows investors and analysts to compare the results of the continuing operations of the Company and its direct and indirect subsidiaries relating to the production and sale of minerals to similar operating results of other mining companies, by excluding exceptional or unusual items, income or loss from discontinued operations and the permanent impairment of assets, including marketable securities and goodwill. Management's determination of the components of Adjusted net income are evaluated periodically and based, in part, on a review of non-GAAP financial measures used by mining industry analysts.</p>
<p/>
<p>The table below sets forth a reconciliation of adjusted net income to GAAP net income, the directly comparable GAAP financial measure.</p>
<pre>
</pre>
<p> </p>
<p> </p>
<p> </p>
<pre>
($million except per share, after-tax) Q1 2010 Q1 2009
-------------------------------------- ------- -------
GAAP Net income attributable to Newmont
Stockholders $546 $189
Income tax estimate revisions (127) -
Net gain on asset sales (25) -
PTNNT community contribution 13 -
Impairment of assets 1 5
Boddington acquisition costs - 5
Adjusted net income $408 $199
=================== ==== ====
Adjusted net income per share $0.83 $0.42
============================= ===== =====
</pre>
<p>Reconciliation of Co-Product Costs Applicable to Sales to By-Product Costs Applicable to Sales</p>
<p/>
<p>Sales and Costs applicable to sales for Boddington are presented in the Condensed Consolidated Financial Statements for both gold and copper due to the significant portion of copper production (approximately 15-20% of total sales based on the latest life-of-mine plan and metal price assumptions). The co-product method allocates costs applicable to sales to each metal based on specifically identifiable costs where applicable and on a relative proportion of sales values for other costs. Management also assesses the performance of the Boddington mine on a by-product basis due to the majority of sales being derived from gold and to determine contingent consideration payments to AngloGold. The by-product method deducts copper sales from costs applicable to sales as shown in the following tables:</p>
<pre>
</pre>
<p> </p>
<p> </p>
<p> </p>
<p> </p>
<pre>
Boddington By-Product
method Co-Product method
------ -----------------
Q1 2010 Gold Gold Copper Total
------- ---- ---- ------ -----
($million except
per ounce/pound)
Revenue, net $167 $167 $38 $205
Production costs:
Direct mining and
production costs 131 103 28 131
By-product
credits (39) (1) - (1)
Royalties and
production taxes 7 5 2 7
Other (33) (27) (6) (33)
----- --- --- --- ---
Costs applicable
to sales 66 80 24 104
Amortization and
reclamation 29 23 6 29
Total production
costs 95 103 30 133
---------------- --- --- --- ---
Gross margin 72 64 8 72
============ === === === ===
</pre>
<p> </p>
<pre>
Gold ounces sold
(000) 150 150
Costs applicable
to sales per
ounce $436 $532
Copper pounds sold
(millions) N/A 11
Costs applicable
to sales per
pound N/A $2.15
---------------- --- -----
</pre>
<p> </p>
<p> </p>
<p> </p>
<p> </p>
<pre>
Consolidated By-Product
(Boddington and
Batu Hijau By-
Product) method Co-Product method
------ -----------------
Q1 2010 Gold Gold Copper Total
------- ---- ---- ------ -----
($million except
per ounce/pound)
Revenue, net $1,749 $1,749 $493 $2,242
Production costs:
Direct mining and
production costs 926 813 113 926
By-product
credits (536) (36) (7) (43)
Royalties and
production taxes 49 44 5 49
Other (57) (61) 4 (57)
----- --- --- --- ---
Costs applicable
to sales 382 760 115 875
Amortization and
reclamation 235 199 36 235
Total production
costs 617 959 151 1,110
---------------- --- --- --- -----
Gross margin 1,132 790 342 1,132
============ ===== === === =====
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<p> </p>
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Gold ounces sold
(000) 1,581 1,581
Costs applicable
to sales per
ounce $241 $480
Copper pounds sold
(millions) N/A 148
Costs applicable
to sales per
pound N/A $0.78
---------------- --- -----
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<p>To view complete financial disclosure, including regional mine statistics, Results of Consolidated Operations, Liquidity and Capital Resources, Management's Discussion & Analysis, the Form 10-Q, and a complete outline of the 2009 Operating and Financial guidance by region, please see <a href="http://www.newmont.com">www.newmont.com</a>.</p>
<p/>
<p>The Company's first quarter and earnings conference call and web cast presentation will be held on <span class="xn-chron">Tuesday, April 27, 2010</span> beginning at <span class="xn-chron">11:00 a.m. Eastern Time</span> (<span class="xn-chron">9:00 a.m. Mountain Time</span>). To participate:</p>
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<p> </p>
<p> </p>
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Dial-In Number 800.369.1673
Intl Dial-In Number 517.308.9349
Leader John Seaberg
Passcode Newmont
Replay Number 888.568.0526
Intl Replay Number 203.369.3194
Replay Passcode 2010
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<p>The conference call also will be simultaneously carried on our web site at <a href="http://www.newmont.com">www.newmont.com</a> under Investor Relations/Presentations and will be archived there for a limited time.</p>
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Cautionary Statement
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<p>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 which are intended to be covered by the safe harbor created by such sections and other applicable laws. Such forward-looking statements include, without limitation: (i) estimates of future production and sales; (ii) estimates of future capital expenditures, costs applicable to sales, other expenses and taxes, for specific operations and on a consolidated basis; (iii) statements regarding future exploration expenditures, results and reserves; (iv) statements regarding fluctuations in capital and currency markets; (v) statements regarding potential cost savings, productivity, operating performance, and cost structure; and (vi) expectations regarding the ramp-up, development, mine life, production and costs applicable to sales and exploration potential of the Company's projects, including Boddington, Akyem, Conga and <span class="xn-person">Hope Bay</span>. Estimates or expectations of future events or results are based upon certain assumptions, which may prove to be incorrect. Such assumptions, include, but are not limited to: (i) there being no significant change to current geotechnical, metallurgical, hydrological and other physical conditions; (ii) permitting, development, operations and expansion of the Company's projects being consistent with current expectations and mine plans; (iii) political developments in any jurisdiction in which the Company operates being consistent with its current expectations; (iv) certain exchange rate assumptions for the Australian dollar to the U.S. dollar, as well as other the exchange rates being approximately consistent with current levels; (v) certain price assumptions for gold, copper and oil; (vi) certain assumptions for taxes, royalties and other expenses; (vii) prices for key supplies being approximately consistent with current levels; and (viii) the accuracy of our current mineral reserve and mineral resource estimates. 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 2009 Annual Report on Form 10-K, filed on <span class="xn-chron">February 25, 2010</span>, 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.</p>
<p/>
<p>(1) See reconciliation of adjusted net income to net income on a GAAP basis on page 10.</p>
<p>(2 ) "Gold operating margin" defined as average realized price per ounce less costs applicable to sales per ounce, excluding amortization and reclamation per ounce.</p>
<p>(3) See reconciliation from by-product costs applicable to sales to GAAP costs applicable to sales on page 11.</p>
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For further information: Investors, John Seaberg, +1-303-837-5743, [email protected], or Monica Brisnehan, +1-303-837-5836, [email protected], or Media, Omar Jabara, +1-303-837-5114, [email protected], all of Newmont Mining Corporation Web Site: http://www.newmont.com
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