Newmont Generates Record $1.1 Billion in Operating Cash Flow and Earns $388
Million ($0.79 per share) in the Third Quarter; 2010 Equity Production to
Increase by 5% - 10%
This release should be read in conjunction with Newmont's Third Quarter
2009 Form 10-Q filed with the Securities and Exchange Commission on
October
29, 2009 (available at www.newmont.com).
</pre>
<p><location>DENVER</location>, <chron>Oct. 29</chron> /CNW/ -- Newmont Mining Corporation (NYSE: NEM) ("Newmont" or the "Company") announced record quarterly revenues of <money>$2.0 billion</money> and net cash from operations of <money>$1.1 billion</money>, resulting in net income(1)(2) of <money>$388 million</money> (<money>$0.79</money> per share).</p>
<p/>
<p>Richard O'Brien, President and Chief Executive Officer, said, "Our continued focus on cost containment resulted in a 13% improvement in gold cost of sales per ounce over the same quarter last year. Combined with the current favorable commodity price environment, our gold operating margin grew by 41% to <money>$560</money> per ounce during the quarter. Additionally, our equity gold sales grew by 4% from the year ago quarter resulting in record operating cash flow. We also celebrated the first gold pour at our Boddington operation, with ramp-up efforts continuing toward commercial production in the fourth quarter."</p>
<pre>
Third Quarter Highlights:
-- Equity gold and copper sales of 1.3 million ounces and 64 million
pounds at average realized prices of $964 per ounce and $2.80 per
pound.
-- Costs applicable to sales for gold of $404 per ounce, down
approximately 13% from $467 per ounce in the year ago quarter.
-- Record quarterly revenues of $2.0 billion and record quarterly cash
flow from operations of approximately $1.1 billion, representing an
increase in excess of 400% from Q3 2008.
-- Net income(1)(2) of $388 million ($0.79 per share), compared to $191
million ($0.42 per share) for the year ago quarter.
-- First gold poured in September at our Boddington operation in Western
Australia, following the first production of copper and gold
concentrate in August.
-- $2.0 billion Senior Notes offering completed in September, improving
our financial strength and flexibility. The offering included (i)
5.125% Senior Notes due 2019 in the principal amount of $900 million,
and (ii) 6.250% Senior Notes due 2039 in the principal amount of $1.1
billion.
-- 2010 equity gold sales to improve by 5% - 10% as a result of higher
production at Boddington and Batu Hijau slightly offset by lower
production in Nevada and at Yanacocha in Peru. 2010 costs applicable
to sales to be modestly higher by approximately 5% depending on input
cost assumptions.
</pre>
<p>(1) See reconciliation from adjusted net income to GAAP Net income on page 9 of this release.</p>
<p>(2) In this release Net income refers to Net income attributable to Newmont stockholders.</p>
<pre>
Operations Summary
</pre>
<p>In the third quarter of 2009, the Company reported equity gold sales of 1.33 million ounces at costs applicable to sales of <money>$404</money> per ounce. Higher than expected sales at Yanacocha in <location>Peru</location>, Batu Hijau in <location>Indonesia</location> and Jundee in <location>Australia</location> were partially offset by lower than expected sales at Tanami in <location>Australia</location>. Costs applicable to sales per ounce were better than expected as a result of higher production.</p>
<p/>
<p>Nevada - Nevada sold 505,000 equity ounces of gold at costs applicable to sales of <money>$541</money> per ounce during the third quarter. Equity gold sales met expectations as lower grades and recoveries at Mill 6 were offset by higher inventory sales. During the quarter, costs applicable to sales also met expectations as higher underground mining costs were offset by higher by-product credits. The Company is maintaining its outlook on expected 2009 equity gold sales from Nevada of between 1.9 and 2.0 million ounces. The outlook for 2009 costs applicable to sales also remains unchanged at between <money>$535</money> and <money>$575</money> per ounce.</p>
<p/>
<p>Yanacocha - At Yanacocha, in <location>Peru</location>, equity gold sales during the third quarter were 285,000 ounces at costs applicable to sales of <money>$294</money> per ounce. Equity gold sales were above expectations due to higher grades and throughput at the gold mill as well as higher leach production. Costs applicable to sales per ounce were lower than expected due to higher gold sales, partially offset by higher royalty and production taxes from higher realized gold prices and from lower by-product credits. For 2009, the Company continues to expect equity gold sales of between 1.0 and 1.05 million ounces. Costs applicable to sales for Yanacocha during 2009 also remain unchanged at between <money>$300</money> and <money>$320</money> per ounce.</p>
<p/>
<p>Australia/New Zealand - Equity gold sales during the third quarter in Australia/New Zealand were 289,000 ounces at costs applicable to sales of <money>$526</money> per ounce. Excluding Boddington, equity gold sales were higher than expected due to higher production at Jundee, Waihi and Kalgoorlie, partially offset by lower production at Tanami. Costs applicable to sales were lower than expected due to the increase in production. Since start-up began, the Boddington ramp-up has proceeded according to plan, with milling operations commenced, first gold poured and first copper concentrate shipped in September. The Company expects to declare commercial production in the fourth quarter of 2009.</p>
<pre>
Key operating highlights for Boddington include:
-- First five year average annual gold production: ~1,000,000 ounces;
-- First five year average costs applicable to sales (net of by-product
credits): $300 per ounce;
-- Proven and probable gold reserves: 20.1 million ounces; and
-- Estimated mine life in excess of 24 years.
</pre>
<p>The Company is updating its 2009 outlook for the region for equity gold sales to between 1.2 and 1.3 million ounces, down from the previously announced outlook of between 1.4 and 1.5 million ounces, due to the later than expected start-up of Boddington. For the same reason, the Company is updating its regional costs applicable to sales to between <money>$500</money> and <money>$520</money> per ounce, up from the previously announced outlook of between <money>$460</money> and <money>$500</money> per ounce.</p>
<p/>
<p>Batu Hijau - Equity gold and copper sales during the third quarter at Batu Hijau in <location>Indonesia</location> were 93,000 ounces and 64 million pounds at costs applicable to sales of <money>$178</money> per ounce and <money>$0.50</money> per pound, respectively. Equity gold and copper sales were slightly higher than expected due to higher grades. Total costs applicable to sales were lower than expected, primarily due to lower diesel costs and a higher build in ore stockpile inventory. Costs applicable to sales allocated to gold were lower than expected as a result of co-product accounting.</p>
<p/>
<p>On <chron>September 18</chron>, Batu Hijau experienced a geotechnical failure in the west wall of the open-pit. Geotechnical monitoring systems and activities allowed for all personnel and mining equipment as well as key electrical and dewatering infrastructure to be evacuated and/or relocated well in advance of the slope failure. Remediation activities commenced on <chron>September 28</chron> and mining activities resumed on <chron>October 10</chron>. The impact on 2009 gold and copper production is expected to be minimal and the Company continues to expect equity gold and copper sales from the mine of between 225,000 and 250,000 ounces and 210 and 230 million pounds, respectively. The Company is also maintaining its outlook for costs applicable to sales for copper of between <money>$0.50</money> and <money>$0.65</money> per pound. The Company lowered its outlook for costs applicable to sales for gold for 2009 to between <money>$200</money> and <money>$220</money> per ounce from between <money>$280</money> and <money>$320</money> per ounce previously. In general, the Company expects delays in ore access previously anticipated in 2010 and 2011 with a marginal decrease in ore mined from the ultimate Phase 6 pit.</p>
<p/>
<p>Ahafo - Equity gold sales during the third quarter at Ahafo in <location>Ghana</location> were 136,000 ounces at costs applicable to sales of <money>$446</money> per ounce. Equity gold sales met expectations as higher throughput and plant availability were offset by lower than anticipated recoveries and grades as a result of changes in mine sequencing. Costs applicable to sales were slightly higher than expected due to the processing of higher cost stockpile material and higher royalty costs, partially offset by lower mining costs. The outlook for hydro electric power availability continues to be positive and there is no expected load shedding for the remainder of the year. The Company continues to expect equity gold sales to be between 500,000 and 525,000 ounces and costs applicable to sales to be between <money>$425</money> and <money>$450</money> per ounce.</p>
<p/>
<p><location>Mexico</location> - Equity gold sales at La Herradura in <location>Mexico</location> during the third quarter were 23,000 ounces at costs applicable to sales of <money>$352</money> per ounce. Equity gold sales were in line with expectations and costs applicable to sales were lower than expected due to lower mining costs.</p>
<pre>
2009 and 2010 Performance Outlook
</pre>
<p>Due to the extended start-up of Boddington, the Company estimates its outlook for 2009 equity gold sales to be approximately 5.2 million ounces, at the lower end of its previously estimated range. The Company has narrowed its outlook for 2009 costs applicable to sales to between <money>$400</money> and <money>$425</money> per ounce, reflecting ongoing cost reduction efforts and favorable by-product credits. The Company's costs applicable to sales forecast for 2009 now assumes an oil price of <money>$80</money> per barrel and an Australian dollar exchange rate of 0.80 for the balance of the year. Costs applicable to sales are expected to change by approximately <money>$1</money> per ounce for every <money>$10</money> change in the oil price and will not be materially impacted by changes in Australian dollar exchange rates due to hedge contracts currently in place for the remainder of the year.</p>
<p/>
<p>For 2010, the Company announced that it expects equity gold production to improve by approximately 5-10%, primarily as a result of higher production from Boddington in <location>Australia</location> and Batu Hijau in <location>Indonesia</location>, partially offset by lower production in Nevada and Yanacocha in <location>Peru</location>. The Company also announced that it expects 2010 costs applicable to sales to be modestly higher by approximately 5%, partially as a function of higher expected energy costs and adverse changes in exchange rates.</p>
<pre>
Capital Update
</pre>
<p>Consolidated capital expenditures were <money>$430 million</money> during the third quarter, with over 60% attributable to Boddington in <location>Australia</location>. The Company now expects capital expenditures at Boddington to be approximately <money>$3.0 billion</money> on a 100% basis (excluding capitalized interest). The Company has narrowed its 2009 consolidated capital expenditure outlook to be between <money>$1.6</money> and <money>$1.7 billion</money>, primarily as a result of the later than expected start-up of Boddington which is offset by lower capital expenditures throughout the rest of the portfolio.</p>
<pre>
</pre>
<p> </p>
<pre>
Consolidated Statements of Income (unaudited, in millions, except per
share)
</pre>
<p> </p>
<pre>
Three Months Ended Nine Months Ended
September 30, September 30,
------------------ -----------------
2009 2008 2009 2008
---- ---- ---- ----
Revenues
Sales - gold, net $1,653 $1,281 $4,401 $4,094
Sales - copper, net 396 90 786 705
---- ----- ----- -----
2,049 1,371 5,187 4,799
Costs and expenses
Costs applicable to sales -
gold(1) 694 692 1,983 1,969
Costs applicable to sales -
copper (1) 71 88 217 342
Amortization 199 186 566 548
Accretion 8 7 25 23
Exploration 55 57 147 154
Advanced projects, research and
development 27 44 100 113
General and administrative 39 37 118 103
Other expense, net 67 69 259 249
---- ---- ---- ----
1,160 1,180 3,415 3,501
----- ----- ----- -----
Other income (expense)
Other income, net 25 66 43 100
Interest expense, net (10) (35) (65) (98)
--- --- --- ---
15 31 (22) 2
--- --- --- ---
Income from continuing operations
before income tax and
other items 904 222 1,750 1,300
Income tax expense (253) (6) (494) (193)
Equity loss of affiliates (6) (1) (14) (6)
--- --- --- ---
Income from continuing operations 645 215 1,242 1,101
Income (loss) from discontinued
operations -- 7 (14) 17
---- ---- ---- ----
Net income 645 222 1,228 1,118
Net income attributable to
noncontrolling interests (257) (31) (489) (291)
---- ---- ---- ----
Net income attributable to Newmont
stockholders $388 $191 $739 $827
==== ==== ==== ====
</pre>
<p> </p>
<pre>
Net income attributable to Newmont
stockholders:
Continuing operations $388 $182 $748 $809
Discontinued operations -- 9 (9) 18
---- ---- ---- ----
$388 $191 $739 $827
==== ==== ==== ====
Income per common share
Basic:
Continuing operations $0.79 $0.40 $1.54 $1.78
Discontinued operations -- 0.02 (0.02) 0.04
---- ---- ----- ----
$0.79 $0.42 $1.52 $1.82
===== ===== ===== =====
Diluted:
Continuing operations $0.79 $0.40 $1.54 $1.77
Discontinued operations -- 0.02 (0.02) 0.04
---- ---- ----- ----
$0.79 $0.42 $1.52 $1.81
===== ===== ===== =====
Basic weighted-average common
shares outstanding 490 454 485 454
=== === === ===
Diluted weighted-average common
shares outstanding 491 455 486 456
=== === === ===
Cash dividends declared per common
share $0.10 $0.10 $0.30 $0.30
===== ===== ===== =====
</pre>
<p> </p>
<p> </p>
<pre>
(1) Exclusive of Amortization and Accretion.
</pre>
<p> </p>
<p>Consolidated Balance Sheets (unaudited, in millions)</p>
<p> </p>
<pre>
At At
September December
30, 31,
2009 2008
---- ----
ASSETS
Cash and cash equivalents $3,022 $435
Marketable securities and other short-term
investments 19 12
Trade receivables 280 104
Accounts receivable 114 214
Inventories 479 507
Stockpiles and ore on leach pads 354 290
Deferred income tax assets 189 284
Other current assets 581 455
----- -----
Current assets 5,038 2,301
Property, plant and mine development, net 12,150 10,128
Investments 1,069 655
Stockpiles and ore on leach pads 1,411 1,136
Deferred income tax assets 999 1,039
Other long-term assets 261 207
Goodwill 188 188
Assets of operations held for sale 31 73
----- -----
Total assets $21,147 $15,727
======= =======
LIABILITIES
Current portion of long-term debt $225 $165
Accounts payable 338 411
Employee-related benefits 201 170
Income and mining taxes 211 61
Other current liabilities 1,226 770
----- ---
Current liabilities 2,201 1,577
Long-term debt 4,698 3,072
Reclamation and remediation liabilities 724 699
Deferred income tax liabilities 1,229 1,051
Employee-related benefits 377 379
Other long-term liabilities 236 252
Liabilities of operations held for sale 13 36
----- -----
Total liabilities 9,478 7,066
----- -----
</pre>
<p> </p>
<pre>
EQUITY
Common stock 768 709
Additional paid-in capital 8,060 6,831
Accumulated other comprehensive income (loss) 454 (253)
Retained earnings 641 4
----- -----
Newmont stockholders' equity 9,923 7,291
Noncontrolling interests 1,746 1,370
----- -----
Total equity 11,669 8,661
------ -----
Total liabilities and equity $21,147 $15,727
======= =======
</pre>
<p> </p>
<p>Consolidated Statements of Cash Flows (unaudited, in millions)</p>
<p> </p>
<p> </p>
<pre>
Three Months Ended Nine Months Ended
September 30, September 30,
------------------ -----------------
2009 2008 2009 2008
---- ---- ---- ----
Operating activities:
Net income $645 $222 $1,228 $1,118
Adjustments:
Amortization 199 186 566 548
(Income) loss from discontinued
operations -- (7) 14 (17)
Accretion of accumulated
reclamation obligations 11 10 34 30
Deferred income taxes 20 (14) 7 (222)
Impairment of marketable
securities -- 34 6 90
Stock based compensation and
other benefits 14 14 44 38
Gain on asset sales, net (2) (57) (3) (70)
Reclamation estimate revisions -- 13 -- 74
Other operating adjustments and
write-downs 23 31 77 73
Net change in operating assets
and liabilities 150 (235) (27) (494)
---- ---- ---- ----
Net cash provided from continuing
operations 1,060 197 1,946 1,168
Net cash (used in) provided from
discontinued operations (5) 2 3 (105)
----- ---- ---- ----
Net cash provided from operations 1,055 199 1,949 1,063
----- ---- ----- -----
Investing activities:
Additions to property, plant and
mine development (404) (457) (1,314) (1,350)
Investments in marketable debt
and equity securities -- (1) -- (18)
Proceeds from sale of marketable
debt and equity securities 5 33 10 50
Acquisitions, net (6) -- (766) (325)
Other (11) 42 (18) 26
----- ----- ----- -----
Net cash used in investing
activities of continuing
operations (416) (383) (2,088) (1,617)
Net cash used in investing
activities of discontinued
operations -- (1) -- (11)
----- ----- ----- -----
Net cash used in investing
activities (416) (384) (2,088) (1,628)
---- ---- ------ ------
Financing activities:
Proceeds from debt, net 2,808 1,778 4,302 2,801
Repayment of debt (936) (1,624) (2,604) (2,249)
Dividends paid to common
stockholders (49) (45) (147) (136)
Dividends paid to noncontrolling
interests (3) (100) (115) (247)
Proceeds from stock issuance, net 1 3 1,248 27
Change in restricted cash
and other -- 12 5 19
----- ----- ----- -----
Net cash provided from financing
activities of continuing
operations 1,821 24 2,689 215
Net cash used in financing
activities of discontinued
operations -- (1) (2) (3)
----- ----- ----- -----
Net cash provided from financing
activities 1,821 23 2,687 212
----- ----- ----- -----
Effect of exchange rate changes on
cash 18 (20) 39 (24)
----- ----- ----- -----
Net change in cash and cash
equivalents 2,478 (182) 2,587 (377)
Cash and cash equivalents at
beginning of period 544 1,035 435 1,230
----- ----- ----- -----
Cash and cash equivalents at end
of period $3,022 $853 $3,022 $853
====== ==== ====== ====
</pre>
<p> </p>
<p>Sales Statistics</p>
<p> </p>
<pre>
Three Months Ended Nine Months Ended
September 30, September 30,
------------------ -----------------
2009 2008 2009 2008
---- ---- ---- ----
Gold
----
Consolidated Ounces
sold (thousands):
North America
Nevada (1) 505 544 1,438 1,624
La Herradura 23 22 79 71
---- ---- ---- ----
528 566 1,517 1,695
---- ---- ----- -----
South America
Yanacocha 554 438 1,558 1,410
</pre>
<p> </p>
<pre>
Asia Pacific
Jundee 103 105 305 305
Tanami 65 86 238 276
Kalgoorlie 93 80 239 212
Waihi 28 41 84 106
Batu Hijau 208 28 381 185
----- ----- ----- -----
497 340 1,247 1,084
----- ----- ----- -----
Africa
Ahafo (2) 136 141 412 380
--- --- --- ---
1,715 1,485 4,734 4,569
===== ===== ===== =====
Equity ounces sold
(thousands):
North America
Nevada (1) 505 544 1,438 1,624
La Herradura 23 22 79 71
----- ----- ----- -----
528 566 1,517 1,695
----- ----- ----- -----
South America
Yanacocha 285 225 800 724
</pre>
<p> </p>
<pre>
Asia Pacific
Jundee 103 105 305 305
Tanami 65 86 238 276
Kalgoorlie 93 80 239 212
Waihi 28 41 84 106
Batu Hijau 93 12 171 83
---- ---- ---- ----
382 324 1,037 982
---- ---- ----- ----
Africa
Ahafo (2) 136 141 412 380
--- --- --- ---
1,331 1,256 3,766 3,781
----- ----- ----- -----
Discontinued
Operations
Kori Kollo 2 21 33 57
----- ----- ----- -----
1,333 1,277 3,799 3,838
===== ===== ===== =====
Copper
------
Batu Hijau pounds
sold (millions):
Consolidated 141 44 342 201
Equity 64 20 154 90
</pre>
<p> </p>
<p> </p>
<pre>
(1) Includes incremental start-up ounces of 1 for both the first nine
months of 2009 and the first nine months of 2008.
(2) Includes incremental start-up ounces of 3 and 19 for the third quarter
and first nine months of 2008, respectively.
</pre>
<p> </p>
<p>Costs Applicable to Sales and Consolidated Capital Expenditures Statistics</p>
<p> </p>
<p> </p>
<pre>
Three Months Ended Nine Months Ended
September 30, September 30,
------------------ -----------------
2009 2008 2009 2008
---- ---- ---- ----
Gold
----
Costs Applicable
to Sales
($/ounce) (1)
North America
Nevada (1) $541 $497 $532 $446
La Herradura 352 468 381 391
---- ---- ---- ----
532 496 524 443
---- ---- ---- ----
South America
Yanacocha 294 362 313 346
</pre>
<p> </p>
<pre>
Asia Pacific
Jundee 329 414 339 411
Tanami 684 638 613 588
Kalgoorlie 638 790 630 807
Waihi 518 397 457 428
Batu Hijau 178 718 232 412
---- ---- ---- ----
380 582 422 535
---- ---- ---- ----
Africa
Ahafo 446 402 424 416
---- ---- ---- ----
Average $404 $467 $419 $433
==== ==== ==== ====
</pre>
<p> </p>
<pre>
Copper
------
Costs Applicable
to Sales
($/pound) (1)
Batu Hijau $0.50 $1.98 $0.63 $1.70
</pre>
<p> </p>
<p> </p>
<pre>
Three Months Ended Nine Months Ended
September 30, September 30,
------------------ -----------------
2009 2008 2009 2008
---- ---- ---- ----
Consolidated
Capital
Expenditures
($millions):
North America
Nevada $43 $87 $154 $227
Hope Bay 1 33 4 63
La Herradura 15 5 34 17
---- ---- ---- ----
59 125 192 307
---- ---- ---- ----
South America
Yanacocha 32 45 94 126
</pre>
<p> </p>
<pre>
Asia Pacific
Boddington 277 212 961 604
Jundee 7 10 21 29
Tanami 14 13 42 34
Kalgoorlie 4 5 6 10
Waihi 3 5 6 24
Batu Hijau 7 11 30 65
Other Asia
Pacific 1 1 2 1
---- ---- ---- ----
313 257 1,068 767
---- ---- ----- ----
Africa
Ahafo 19 16 42 76
Akyem 3 -- 4 1
---- ---- ---- ----
22 16 46 77
---- ---- ---- ----
Corporate and
Other 4 -- 12 6
---- ---- ---- ----
Total - Accrual
Basis 430 443 1,412 1,283
---- ---- ----- -----
Change in
Capital
Accrual (26) 14 (98) 67
---- ---- ---- ----
Total - Cash
Basis $404 $457 $1,314 $1,350
==== ==== ====== ======
</pre>
<p> </p>
<pre>
(1) Excludes Amortization and Accretion.
Supplemental Information
</pre>
<p>Reconciliation of Adjusted Net Income to GAAP Net Income - Management of the Company uses the non-GAAP financial measure Adjusted net income to evaluate the Company's operating performance, and for planning and forecasting future business operations. The Company believes the use of Adjusted net income allows investors and analysts to compare the results of the continuing operations of the Company and its direct and indirect subsidiaries relating to the production and sale of minerals to similar operating results of other mining companies, by excluding exceptional or unusual items, income or loss from discontinued operations and the permanent impairment of assets, including marketable securities and goodwill. Management's determination of the components of Adjusted net income is evaluated periodically and based, in part, on a review of non-GAAP financial measures used by mining industry analysts.</p>
<p/>
<p>Adjusted net income is not, and should not be used as, an alternative to GAAP Net income as reflected in the consolidated financial statements of the Company. Adjusted net income is not a measure of financial performance under GAAP and this measure should not be considered in isolation or as a substitute to performance measures calculated in accordance with GAAP. The table below sets forth a reconciliation of Adjusted net income to GAAP Net income, which is the most directly comparable GAAP financial measure.</p>
<pre>
</pre>
<p> </p>
<pre>
Description ($million
except per share,
after-tax) Q3 2009 Per Share Q3 2008 Per Share
--------------------- ------- --------- ------- ---------
Adjusted net income $ 388 $ 0.79 $ 181 $ 0.40
Gain on sale of
exploration property - - 19 0.04
Income taxes - - 18 0.04
Write-down of
accounts receivable - - (5) (0.01)
Legacy reclamation
obligations - - (9) (0.02)
Write-down of marketable
securities (1) - - (22) (0.05)
---- ---- ---- -----
GAAP income from
Continuing
operations (2) 388 0.79 182 0.40
---- ----- ---- -----
Income from
Discontinued
operations (2) - - 9 0.02
---- ----- ---- -----
GAAP net income (2) $ 388 $ 0.79 $ 191 $ 0.42
---- ----- ---- -----
</pre>
<p> </p>
<pre>
(1) Net of gains on sales
(2) Attributable to Newmont stockholders
</pre>
<p>2009 Annual Guidance - The table below sets forth the Company's current outlook and forecast assumptions:</p>
<p/>
<p> </p>
<pre>
Description
(consolidated
unless otherwise
noted) Q3 Update Q2 Update Q1 Update 2009 Original
----------------- --------- --------- --------- -------------
Equity gold sales
(thousand ounces) ~ 5,200 5,200-5,400 5,200-5,500 5,200-5,500
Costs applicable
to sales ($/ounce) $400-$425 $400-$440 $400-$440 $400-$440
Equity copper sales
(million pounds) 210-230 210-230 210-230 210-230
Costs applicable to
sales ($/pound) $0.50-$0.65 $0.50-$0.65 $0.50-$0.65 $0.65-$0.75
Capital
expenditures
($ million) $1,600-$1,700 $1,500-$1,700 $1,400-$1,600 $1,400-$1,600
Amortization
($ million) $740-$760 $740-$780 $775-$825 $775-$825
Exploration
($ million) $165-$175 $165-$175 $165-$175 $165-$175
Advanced projects,
research and
development
($ million) $155-$165 $140-$160 $120-$150 $120-$150
General &
administrative
($ million) $150-$160 $150-$160 $140-$150 $140-$150
Interest expense,
net ($ million) $100-$110 $100-$110 $150-$160 $150-$160
Effective tax rate 28%-30% 27%-31% 27%-31% 28%-32%
</pre>
<p> </p>
<p> </p>
<pre>
Forecast
Assumptions Q3 Update Q2 Update Q1 Update 2009 Original
------------ --------- --------- --------- -------------
Gold Price
($/ounce) $925 $925 $875 $750
Copper price
($/pound) $2.50 $2.00 $1.50 $2.00
Oil price
($/barrel) $80 $70 $50 $70
Australian
dollar exchange
rate 0.80 0.75 0.70 0.75
</pre>
<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 third quarter earnings conference call and webcast presentation will be held on <chron>Thursday, October 29, 2009</chron> beginning at <chron>10:00 a.m. Eastern Time</chron> (<chron>8:00 a.m. Mountain Time</chron>). To participate:</p>
<p/>
<p> </p>
<pre>
Dial-In Number 888.603.9219 Replay Number 866.501.5087
Intl Dial-In Number 210.234.0042 Intl Reply Number 203.369.1833
Leader John Seaberg Replay Pass code Newmont
Pass code Newmont
</pre>
<p>The conference call will also be simultaneously carried on the Company's website at <a href="http://www.newmont.com">www.newmont.com</a> under Our Investors/Events and Presentations and will be archived there for a limited time.</p>
<pre>
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, that are intended to be covered by the safe harbor created by such sections and other applicable laws. Words such as "expect(s)", "feel(s)", "believe(s)", "will", "may", "anticipate(s)", "estimate(s)", "should", "intend(s)" and similar expressions are intended to identify forward-looking statements. Such forward-looking statements include, without limitation, (i) estimates of future mineral production and sales; (ii) estimates of future costs applicable to sales, other expenses and taxes, for specific operations and on a consolidated basis; (iii) estimates of future capital expenditures, construction, production or closure activities; (iv) statements regarding future exploration expenditures, results and reserves; (v) statements regarding fluctuations in availability of capital or in relevant commodity and currency markets; (vi) statements regarding potential cost savings, productivity, financial or operating performance, and ownership and cost structures; (vii) expectations regarding the timing of the transfer of acquisitions or divestitures; (viii) expectations regarding the ramp-up, design, mine life, production and costs applicable to sales and exploration potential of the Boddington project and other projects and operations; and (ix) expectations regarding the impacts of operating or technical issues in connection with the Company's projects or operations. 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 2008 Annual Report on Form 10-K, filed on <chron>February 19, 2009</chron>, with the Securities and Exchange Commission, and its 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>
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For further information: Investors, John Seaberg, +1-303-837-5743, [email protected], or Media, Omar Jabara, +1-303-837-5114, [email protected], both of Newmont Mining Corporation Web Site: http://www.newmont.com
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